On December 31, Guxin Materials Technology (02560.HK) announced that the company plans to globally offer approximately 0.145 billion H Shares, with 14.498 million shares available for sale in Hong Kong and around 0.1305 billion shares for international sale; the subscription period is from December 31, 2024, to January 6, 2025, with the expected pricing date on January 7, 2025; the offer price will be HKD 3.0-3.3 per share, with a trading unit of 1,000 shares, and China Securities Co., Ltd. as the exclusive sponsor; shares are expected to start trading on the Hong Kong Stock Exchange on January 9, 2025.

The company is a fine chemical materials supplier that produces and sells cement additives, concrete additives, and related upstream raw materials. With the company's research and development efforts and capabilities, technical support related to the products offered by the company is also provided to customers. According to Frost & Sullivan, based on sales volume and revenue from cement additives in the 2023 fiscal year, the company ranks first in China, with market shares of approximately 28.3% and 32.3% respectively (specifically, based on sales volume and revenue from cement grinding aids for the 2023 fiscal year, the company ranks first in China, with market shares of approximately 34.6% and 34.1%). In the 2023 fiscal year, the company's sales volume of concrete additives accounted for approximately 0.8% of China's total sales volume of concrete additives, while its revenue from concrete additives accounted for approximately 0.6% of China's total revenue from concrete additives in the same period. In the 2023 fiscal year, the company's sales volume of amine products accounted for approximately 4.7% of China's total sales volume of amine products, while its revenue from amine products accounted for approximately 3.9% of China's total revenue from amine products. In the 2023 fiscal year, the company's sales volume of polyether monomers accounted for approximately 0.9% of China's total sales volume of polyether monomers, while its revenue from polyether monomers accounted for approximately 1.0% of China's total revenue from polyether monomers. The company was established by Conch Group, which is ranked 135th in Fortune's China 500 in 2024, and as a core enterprise with full industry capabilities for energy-saving and efficiency-enhancing in the cement and concrete industries, it is committed to developing the fine chemical materials market.

The company has entered into cornerstone investment agreements, under which, subject to certain conditions, cornerstone investors have agreed to subscribe to an aggregate amount of approximately RMB 0.3018 billion (or approximately HKD 0.3267 billion) worth of shares for purchase at the offer price. Assuming the offer price is HKD 3.15 per share (which is the median price in the indicative range provided in this prospectus), the total number of shares the cornerstone investors will subscribe for will be approximately 0.101 billion shares. The cornerstone investors include Gotion High-tech Co., Ltd. ("Gotion High-tech (002074.SZ)"), Anhui Shengchang Chemical Co., Ltd. ("Anhui Shengchang"), Wuhu Aiteke Biotechnology Co., Ltd. ("Wuhu Aiteke"), SCGC Capital Holdings Co., Ltd. ("SCGC Capital," which is an indirect wholly-owned subsidiary of Shenzhen Innovation Investment Group Co., Ltd.), Guangdong Zongxing Technology Co., Ltd. ("Guangdong Zongxing"), and Shenzhen Gaodeng Computer Technology Co., Ltd. ("Shenzhen Gaodeng").

Assuming the offer price is HKD 3.15 per share (which is the median of the indicated offer price range of HKD 3.0 to 3.3 per H share) and assuming the overallotment option is not exercised, the company estimates that it will receive a total net amount of approximately HKD 0.4176 billion from the global offering. The company currently intends to use the proceeds from the global offering as follows: approximately 35.0% will be used to optimize the group's production capacity while effectively expanding the company's geographical coverage in China and several overseas countries to consolidate its position as one of China's leading fine chemical material suppliers; approximately 10.0% will be used to implement marketing plans to increase and consolidate the company's market share in China's and the global cement and concrete manufacturing Industry; approximately 15.0% will be further invested into research and development programs supporting the company's market position; approximately 15.0% will be used to repay part of the bank loans; approximately 15.0% will be used to further vertically enhance the company's position in the value chain through acquisitions or the establishment of joint ventures, and to improve its competitiveness as a leading player in China's cement additives industry; and approximately 10.0% will be used as working capital and for other general corporate purposes.