Core Viewpoint - New Qi'an (02573.HK) has launched an IPO, planning to issue 10.5854 million shares globally, with a price range of HKD 18.9 to HKD 20.9 per share, aiming to raise approximately HKD 174.3 million if priced at HKD 19.9 per share [1] Company Overview - Established in 2003, New Qi'an specializes in the production and sale of food additives, including high-intensity sweetener sucralose and food-grade and industrial-grade glycine, ranking first in the global food-grade glycine manufacturing industry by sales volume and revenue in 2023 [2] - The company holds approximately 5.1% and 3.1% of the global market share in food-grade glycine by sales volume and revenue, respectively [2] Financial Performance - New Qi'an has experienced declining financial performance over the past two years, with revenue dropping from RMB 761 million in 2022 to RMB 569 million in 2024, and net profit decreasing from RMB 122 million to RMB 43.4 million during the same period [3] Market Segmentation - In 2024, over 60% of New Qi'an's revenue came from Europe and North America, with significant growth in the North American market [4] - Revenue distribution by region for 2024 shows North America contributing RMB 233.8 million (41.1%), Europe RMB 119.2 million (20.9%), and mainland China RMB 116.4 million (20.5%) [5] IPO Details - The Hong Kong public offering will commence on May 30, 2025, and end on June 5, 2025, with the final offer price and allocation results to be announced on June 9, 2025 [1] - New Qi'an has secured cornerstone investments of approximately HKD 60 million from investors including Reynold Lemkins and He Win [1]

Company Overview - The company, 新琪安 (02573), is a producer of food-grade glycine and sucralose, with over 20 years of industry experience [1] - It ranks first in the global food-grade glycine manufacturing industry based on sales volume and revenue for 2023, holding approximately 5.1% and 3.1% of the global market share respectively [1] - The company's food-grade glycine accounted for about 0.31% of the global food additive market by sales volume in 2023 [1] IPO Details - The company plans to conduct an IPO from May 30 to June 5, 2025, offering 10,585,400 H-shares, with 10% allocated for public sale in Hong Kong and 90% for international sale, plus an additional 15% over-allotment option [1] - The expected price range for the shares is HKD 18.9 to 20.9 per share, with shares anticipated to be listed on June 10, 2025 [1] Use of Proceeds - Assuming a share price of HKD 19.9 and no exercise of the over-allotment option, the net proceeds from the global offering are estimated to be approximately HKD 174.3 million [2] - About 21.3% of the proceeds will be allocated to the construction of a production line for isomaltitol at a factory in Thailand, with an expected annual capacity of 15,000 tons [2] - Approximately 55.3% will be used over the next two years for the production of algal dietary fiber and serine [2] - Around 13.4% will be invested in enhancing research and development capabilities [2] - About 10.0% will be utilized for working capital and general corporate purposes [2] Strategic Partnerships - The company has entered into cornerstone investment agreements with The Reynold Lemkins Group (Asia) Limited and 合赢香江控股有限公司, agreeing to subscribe for shares at the offer price, with a total investment not exceeding HKD 60 million [2]

Group 1 - The company plans to globally offer 10.5854 million H-shares, with 1.0586 million shares available in Hong Kong and 9.5268 million shares for international offering, along with a 15% over-allotment option [1] - The expected pricing range for the shares is HKD 18.9 to 20.9 per share, with a trading unit of 200 shares, and the shares are anticipated to start trading on June 10, 2025 [1] - The company is a leading producer of food-grade glycine and sucralose, holding the top position in the global food-grade glycine manufacturing industry based on sales volume and revenue in 2023, with a market share of approximately 5.1% in volume and 3.1% in revenue [2] Group 2 - The company has established cornerstone investment agreements with Reynold Lemkins Group (Asia) Limited and He Win Holdings Limited, agreeing to subscribe for shares up to HKD 60 million, with a total of 2.9848 million shares at a price of HKD 19.9 per share [3] - Assuming the over-allotment option is not exercised and the shares are priced at HKD 19.9, the total proceeds from the global offering are estimated to be approximately HKD 210.6 million, with net proceeds expected to be around HKD 174.3 million after listing expenses [4] - The intended use of the net proceeds includes approximately 21.3% for the construction of a production line for isomaltulose in Thailand, 55.3% for the production of algal dietary fiber and serine, 13.4% for enhancing R&D capabilities, and 10.0% for working capital and general corporate purposes [4]