Core Viewpoint - Dongzheng Finance (02718.HK) is set to issue 533 million shares with a price range of HKD 4.20 to HKD 6.30, targeting both local and international investors, and plans to list on March 26, 2019 [1][2]. Group 1: Company Overview - Dongzheng Finance is a subsidiary of Zhengtong Automotive and is the only automotive finance company in China licensed and regulated by the China Banking and Insurance Regulatory Commission [2]. - The company specializes in providing financial products and services for the purchase of luxury brand vehicles [2]. - As of December 31, 2018, the company had a dealer network of 1,280 dealers covering 182 cities in China, including all four first-tier cities and various second and third-tier cities [3]. Group 2: Financial Performance - In 2018, the company issued 31,577 retail loans for luxury vehicle purchases, totaling a principal amount of RMB 6.108 billion, which accounted for 75.7% of the total retail loans issued by the company [2]. - The company reported revenues of RMB 3.32 billion, RMB 4.62 billion, and RMB 8.16 billion for the years 2016, 2017, and 2018, respectively, with net profits of RMB 1.75 billion, RMB 2.61 billion, and RMB 4.53 billion during the same period [3]. Group 3: Use of Proceeds - The net proceeds from the offering are estimated to be approximately HKD 2.672 billion, with 70% allocated for expanding business involving external clients, 15% for self-operated retail loans to Zhengtong Automotive clients, 5% for developing technology and operational capabilities, and 10% for general working capital [3].
正通汽车(01728.HK)旗下东正金融今起招股 预期3月26日上市