Group 1 - The investment atmosphere in Hong Kong is improving, with over 300,000 subscriptions for some new IPOs, and foreign capital participation in IPOs has increased from less than 20% to 28% compared to previous years [1] - Long-term investors, such as overseas pension funds and sovereign wealth funds, are showing increased interest in Hong Kong IPOs, leading to more stable post-IPO performance for many companies [1] - The competitive landscape in various industries is intense, but industry leaders with better capital, resources, and operational efficiency are expected to gain larger market shares through consolidation [1] Group 2 - Excluding SPAC listings, Hong Kong's IPO financing in the first half of the year reached $14.1 billion, surpassing the Nasdaq and NYSE [2] - Major IPOs like CATL raised HKD 41 billion, while other companies like Hengrui Medicine and Haitian Flavor & Fragrance also raised over HKD 10 billion, but the average scale of IPOs this year is still below the levels seen from 2019 to 2021 [2] - The current pipeline of companies applying for IPOs is not particularly large, suggesting a gradual increase in total fundraising rather than a sudden spike, which is viewed positively for market liquidity [2]

Core Viewpoint - The Hong Kong IPO market is expected to experience explosive growth in 2025, driven by cornerstone investors, with international capital showing a significant rebound in demand for Chinese assets [1][2]. Group 1: IPO Market Performance - In the first half of 2025, the Hong Kong main board completed 42 IPOs, raising a total of HKD 106.7 billion, representing a year-on-year increase of over 220%, making it the largest globally [1]. - Approximately 85% of new stocks successfully attracted cornerstone investors before listing, with an average of 4.4 cornerstone investors per IPO, and over 40% of projects securing more than five cornerstone institutions [1]. Group 2: Investor Sentiment and Trends - International long-term funds, such as pension and sovereign wealth funds, have resumed investments in Hong Kong stocks after several years of adjustment, driven by the attractiveness of undervalued assets, policy support, and innovation in the technology sector [1][2]. - The demand-supply ratio for Hong Kong IPOs this year averages 9%, significantly lower than the past five years' average of 25%, indicating improved public risk appetite [3]. Group 3: Sectoral Insights - The recovery of the Hong Kong IPO market is supported by multiple favorable factors, including regulatory and institutional optimizations, with the Hong Kong Stock Exchange easing listing rules and promoting dual listings for A-share companies [2]. - High-demand sectors such as new energy, artificial intelligence, and biomedicine are accelerating IPO financing, with leading projects like CATL and BYD having a significant impact [2]. Group 4: Future Outlook - Goldman Sachs predicts that the Hong Kong IPO market will remain active in the second half of the year, with total fundraising expected to exceed HKD 150 billion [2]. - The report emphasizes a strong correlation between the proportion of cornerstone investors (30%-50%) and post-IPO market performance, with high-growth technology stocks and stable consumer stocks continuing to attract capital [2].

Core Viewpoint - The Hong Kong IPO market has been thriving since 2025, with over 40 companies listed and total financing exceeding HKD 100 billion, indicating a significant increase in both the quantity and quality of cornerstone investors compared to the same period in 2024 [1][4]. Group 1: Cornerstone Investors - The number of cornerstone investors participating in Hong Kong IPOs has surged, with 189 cornerstone investors involved in 43 companies in the first half of 2025, averaging 4.39 investors per company, compared to 41 investors for 30 companies in the same period last year [4]. - The presence of high-quality cornerstone investors enhances the performance of newly listed stocks, as seen with companies like Ying'en Biotechnology-B, which had a first-day increase of 116.70% backed by 15 cornerstone investors [5]. Group 2: Local State-Owned Enterprises - Local state-owned enterprises (SOEs) have increasingly become key players in the cornerstone investment landscape, often linked to the companies' headquarters or significant local projects [7]. - The involvement of local government-backed funds as cornerstone investors significantly increases the likelihood of successful IPOs, as these investments align with local industrial development plans [8]. Group 3: Foreign Institutional Participation - The participation of well-known foreign institutions in cornerstone investments has risen, with a noticeable preference for large IPO projects, indicating a shift in foreign investment sentiment towards Chinese assets [10][11]. - Foreign investors are particularly interested in technology, pharmaceutical, and new consumer companies, reflecting a broader trend of international capital returning to the Hong Kong market [11][12].

Group 1 - The company plans to globally offer 360 million shares, with 25.22 million shares available in Hong Kong and 335 million shares internationally, along with an overallotment option of 54.05 million shares [1] - The subscription period for the shares is from June 13 to June 18, with a maximum offer price of HKD 22.53 per share and an entry fee of approximately HKD 2,275.72 for 100 shares [1] - The total expected fundraising amount is HKD 7.88 billion, with a net amount of HKD 7.74 billion, which will be used for ongoing global R&D and innovation, factory expansion in China, enhancing production automation, and strengthening digital infrastructure [1] Group 2 - The company's main business includes the research and development of household appliances, manufacturing of refrigeration and air conditioning equipment, and various types of valves and pumps [2] - The net profits for the years 2023, 2024, and the first quarter of 2025 (ending March 31) are projected to be CNY 2.92 billion, CNY 3.10 billion, and CNY 903 million, reflecting year-on-year changes of 13.51%, 6.10%, and 39.47% respectively [2]