RS Macalline (Red Star Macalline Group Corporation Ltd.) has put forward two key ordinary resolutions for shareholder approval at its 18 September 2026 extraordinary general meeting (EGM):
1. Reallocation of Unused A-share Proceeds • Total of RMB1.02 billion (approximately RMB1,016.72 million) of unutilised funds will be permanently re-designated as working capital. • Source of funds: – RMB17.07 million originally earmarked for the “Changsha Jinxia Shopping Mall Project”. – RMB999.65 million remaining from the “Foshan Lecong” and “Nanning Dingqiu” shopping mall projects, both raised under the 2020 non-public A-share issuance. • Application: Entire amount will be used to repay a shareholder loan from substantial shareholder Xiamen C&D Inc. Outstanding balance of the loan stands at RMB1.40 billion with an annual interest rate of 3.53%, maturing in October 2026.
Key drivers for terminating / downsizing the projects include: • Intensifying competition and weakened return prospects in the Foshan and Nanning home-furnishing markets. • Strategic shift since the June 2023 change in controlling shareholder, prioritising an asset-light model, debt reduction and cash-flow optimisation.
2. 2026 Guarantee Mandate • Management seeks authority to grant new guarantees of up to RMB7.50 billion between the Company and its subsidiaries for the 12 months following the EGM. • As at 31 August 2026, existing guarantees total RMB22.25 billion, equivalent to 98.76% of 2025 year-end parent-company net assets. No guarantees are outstanding to substantial shareholders, de facto controllers or related parties, and none are overdue.
Capital Structure Impact Applying RMB1.02 billion of idle proceeds to repay part of the Xiamen C&D loan is expected to lower finance costs, improve cash flow and reduce gearing without materially affecting day-to-day operations. The Company states the move aligns with its medium-term plan to strengthen its balance sheet and focus on operational efficiency versus heavy-asset expansion.
Shareholders of record on 15 September 2026 are eligible to vote at the EGM; the proxy deadline is 17 September 2026. All resolutions will be decided by poll.