Core Viewpoint - Xin Qian Group Co., Ltd. (新琪安) successfully listed on the Hong Kong Stock Exchange, opening at HKD 30.25 and closing at HKD 22.95, reflecting a 21.43% increase from the opening price [1] Group 1: IPO Details - The final offer price for Xin Qian was HKD 18.90, with a total number of shares offered being 10,585,400 [2] - The distribution of shares included 1,662,400 shares for the Hong Kong public offering and 8,923,000 shares for international offering [2] - The total proceeds from the offering amounted to HKD 200.06 million, with net proceeds of HKD 164.15 million after deducting estimated listing expenses of HKD 35.91 million [2] Group 2: Use of Proceeds - The net proceeds from the global offering will be allocated for the production of isomaltitol at the Thailand factory, expansion of sucralose production, production of algal dietary fiber and serine, enhancement of R&D capabilities, working capital, and general corporate purposes [2] Group 3: Financial Performance - Xin Qian's projected revenues for 2022, 2023, and 2024 are RMB 761.49 million, RMB 446.94 million, and RMB 568.87 million, respectively [5][6] - The net profit for the same years is projected to be RMB 122.02 million, RMB 44.66 million, and RMB 43.41 million, respectively [8] - Adjusted net profit (non-HKFRS measurement) for the years is expected to be RMB 122.02 million, RMB 44.66 million, and RMB 53.61 million [8] Group 4: Cash Flow - The net cash generated from operating activities for 2022, 2023, and 2024 is projected to be RMB 192.40 million, RMB 26.20 million, and RMB 4.30 million, respectively [8][9] - The cash and cash equivalents at the end of the years are expected to be RMB 178.25 million, RMB 105.19 million, and RMB 46.13 million [9]

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]