Huitongda Network (9878.HK) Proposed Change in the Use of Proceeds from H Shares IPO, Focus on Pursuing Strategic Alliances, Investments, or Acquisitions

Huitongda Network (9878.HK) Proposed Change in the Use of Proceeds from H Shares IPO, Focus on Pursuing Strategic Alliances, Investments, or Acquisitions

Huitongda Network Co., Ltd (9878.HK) announced a change in the use of proceeds from its initial public offering of H shares, to further improve the efficiency of the use of raised funds and accelerate the integration of various business resources. The current adjustment is mainly to increase the available amount for “selectively pursuing strategic alliances, investments, or acquisitions” by an additional RMB506.1 million to RMB534.6 million. With supply chain consolidation, house brand development, and network expansion being its key focus in 2025, the increase in relevant funding is expected to improve flexibility and fast-track the progress of any potential joint ventures, investments, and mergers and acquisitions. That should also in turn, strengthen Huitongda’s core competitiveness and bring new growth impetus to its business.

In particular, the change in the use of proceeds would allow Huitongda to explore opportunities among product manufacturers, which would be the building blocks of its house brand development that would give the Company more pricing power and better margins. The proceeds change would also dedicate more resources towards third-party operators within the value chain, allowing Huitongda to generate higher efficiency and better margins through consolidation. The proposed change in the use of proceeds shall be subject to the consideration and approval by the Shareholders at the general meeting by way of an ordinary resolution.