On September 9, SHIMAO SERVICES (00873.HK) provided further details regarding the use of proceeds from its initial public offering and the top-up share placement, as outlined in its 2025 annual report. As of December 31, 2025, the company had generated net proceeds of RMB 5,126 million from the listing, of which RMB 4,159 million had been utilized, leaving an unutilized balance of RMB 948 million. Meanwhile, the net proceeds from the top-up share placement totaled RMB 1,426 million, with RMB 674 million already deployed and RMB 143 million remaining unutilized.

The net proceeds have been applied in accordance with the intended purposes and allocation ratios set forth in the prospectus and the company's announcements dated October 20, 2021, and November 2, 2021. However, the expected timeline for utilizing the remaining unutilized amounts has been extended to 2026. The reasons for this delay include a shift in the property management sector from rapid expansion to a greater emphasis on operational quality, alongside heightened uncertainty regarding the valuation and quality of merger and acquisition targets, prompting the group to adopt a more cautious approach in its selection process.

Additionally, due to changes in the real estate industry landscape, the group has optimized its business structure and scaled back non-core operations. This has reduced the demand for external talent, leading to a greater focus on internal development. Furthermore, the group has been prudently allocating funds based on actual needs, with the unutilized proceeds held in interest-bearing deposits at licensed banks. The company believes that the extension of the expected timeline will not have a material adverse impact on its existing operations.