Jiangsu Horizon Chain Supermarket, a Supermarket and Convenience Store Chain Store Operator, Announces Its Global Offering and Listing of H Shares on the Main Board of the Hong Kong Stock Exchange

HONG KONG, Mar 22, 2025 - ( JCN Newswire ) - Highlights of the Global Offering:

- The Hong Kong Public Offering is expected to close at 12:00 noon (at 11:30 a.m. for completing electronic applications under the White Form eIPO service) on Wednesday, 26 March 2025;
- Offer Price Range: HK$2.50 to HK$3.00 per Share;
- The Shares will be traded in board lots of 1,000 Shares each;
- Maximum net proceeds will be approximately HK$117.7 million (before any exercise of the Over-allotment Option);
- Dealings in the Shares on the Main Board of the Hong Kong Stock Exchange are expected to commence on Monday, 31 March 2025;
- Red Solar Capital Limited is the Sole Sponsor.

Jiangsu Horizon Chain Supermarket Company Limited (the 'Company', stock code: 2625) today announces its Global Offering and the listing of Shares on the Main Board of The Stock Exchange of Hong Kong Limited (the 'Hong Kong Stock Exchange').

Jiangsu Horizon Chain Supermarket Company Limited is a wholesaler of grains and oil headquartered in Yangzhou, with retail operations of supermarket and convenience stores focusing on the central region of Jiangsu Province under the brand 'Hongxinlong'. According to the Industry Report, the Company ranked second among supermarket operators in Yangzhou in terms of sales in 2023 with a market share of approximately 9.1%, the fifth among supermarket operators in the central region of Jiangsu Province in terms of sales in 2023 with a market share of approximately 2.3%, and around the twentieth among supermarket operators in Jiangsu province in terms of sales in 2023 with a market share of approximately 0.4%.

Jiangsu Horizon Chain Supermarket Company Limited plans to offer an aggregate of 53,562,000 Shares (subject to Over-allotment Option) under the Global Offering, of which 48,205,000 Shares (subject to reallocation and the Over-allotment Option) will be offered by way of International Placing, and 5,357,000 Shares (subject to reallocation) will be offered in the Hong Kong Public Offering. The Offer Price will not be more than HK$3.00 per Share and is currently expected to be not less than HK$2.50 per Share, with the board lot size of 1,000 shares

The Hong Kong Public Offering commenced on Friday, 21 March 2025 and is expected to close at 12:00 noon (at 11:30 a.m. for completing electronic applications under the White Form eIPO service) on Wednesday, 26 March 2025. Dealings in H Shares on the Stock Exchange are expected to commence on Monday, 31 March 2025.

Assuming the Over-allotment Option is not exercised at all, if the Offer Price is set at HK$3.00 per Share (being the high end of the Offer Price range), the net proceeds from the

Global Offering will increase to approximately HK$117.7 million. The Company intends to apply the net proceeds for the following purposes:

- Approximately 30.9% will be used for the opening of new Retail Stores, including store renovation, purchase of shelves, purchase of cold storage facilities, lightings, air-conditioning, CCTV surveillance system and POS system and installation of fire safety system.

- Approximately 41.2% will be used for establishing a new distribution centre including acquiring a parcel of land for the construction of the New Distribution Centre, acquiring shelves, lightings and ancillary facilities and installing fire safety system.

- Approximately 26.8% will be used for establishing a new central kitchen, including the construction of the New Central Kitchen, acquiring machines and equipment, acquiring and installing fire safety system, ventilation system, cold storage facilities, utilities, air-conditioning, CCTV surveillance system and ancillary facilities, and acquiring additional vehicles for the delivery of meals to the customers.

- Approximately 1.1% will be used for enhancing the ERP system and infrastructure systems to improve operational efficiency.

The Company has successfully procured cornerstone investor Top Legend SPC, Top Legend has agreed to subscribe for such number of H Shares which may be subscribed with an aggregate amount of US$5.0 million at the Offer Price (including brokerage, SFC transaction levy and Stock Exchange trading fee). The lock-up period shall last for a duration of six months.

Red Solar Capital Limited is the Sole Sponsor. Red Solar Capital Limited and CMBC Securities Company Limited are the Joint Overall Coordinators, Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers. CCB International Capital Limited is the Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers. CMB International Capital Limited, uSMART Securities Limited, Star River Securities Limited, Eddid Securities and Futures Limited, Innovax Securities Limited, and Long Bridge HK Limited are the other Joint Bookrunners and Joint Lead Managers.