Excellence Commercial updates on profit guarantee shortfall, fund use

Excellence Commercial Property & Facilities Management Group Limited reported a profit guarantee shortfall of RMB1,754,023.44 from Beijing Global Wealth for the year ended 31 December 2024. This shortfall, representing approximately 0.04% of the group’s total revenue and 0.5% of its profit for the year, remains unpaid. The company has engaged in discussions to resolve the matter and has set 31 March 2026 as the final negotiation deadline for receiving the shortfall, before potentially considering formal legal action.

The board believes that initiating immediate legal action would not be cost-effective or commercially justified. It cited estimated direct legal costs of approximately RMB280,000 for initiating action, rising to RMB400,000 if an appeal is involved, which represents 16.0% and 22.8% of the shortfall, respectively. Searches conducted in October 2025 revealed that three of the four relevant parties are listed as judgment debtors, indicating potential liquidity constraints.

Regarding the use of proceeds, as of 31 December 2024, the group had HK$1,825.6m in unutilized net proceeds brought forward from the previous financial year. Of the planned use, 55.00% was allocated to business expansion, with HK$659.3m utilized, and 3.00% for information system development, utilizing HK$4.9m. Facility upgrades utilized HK$26.9m, attracting and nurturing talent utilized HK$264.4m, and general corporate purposes used HK$62.4m of the proceeds.