REG - Zhejiang Yongtai - Announcement of Offer Price

China Securities CoAnnouncement

06/07/2023 08:15

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RNS Number : 1165F  Zhejiang Yongtai Technology Co Ltd  06 July 2023

Announcement of Offer Price

 

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INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH
AFRICA, THE PEOPLE'S REPUBLIC OF CHINA OR ANY OTHER JURISDICTION WHERE IT IS
UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS AND NOT AN OFFER OF
SECURITIES FOR SALE IN ANY JURISDICTION, INCLUDING, WITHOUT LIMITATION, IN OR
INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE PEOPLE'S
REPUBLIC OF CHINA.

Neither this announcement, nor anything contained herein shall form the basis
of, or be relied upon in connection with, any offer or commitment whatsoever
in any jurisdiction. Investors should not subscribe for or purchase any
securities referred to in this announcement except solely on the basis of the
information contained in a prospectus in its final form (together with any
supplementary prospectus, if relevant, the "Prospectus"), including the risk
factors set out therein, expected to be published by Zhejiang Yongtai
Technology Co., Ltd. (the "Company") in due course in connection with the
proposed offer of global depositary receipts ("GDRs") representing the
Company's A shares and the proposed admission of such GDRs to the standard
listing segment of the Official List of the United Kingdom Financial Conduct
Authority (the "FCA") and to trading on the Stock Connect segment of the main
market for listed securities (the "Main Market") of London Stock Exchange plc
(the "LSE") (together, the "Admission"). A copy of any Prospectus published by
the Company will, if published, be available for inspection on the Company's
website at http://www.yongtaitech.com, subject to certain access restrictions.

6 July 2023

ZHEJIANG YONGTAI TECHNOLOGY CO., LTD.

(a joint stock company established under the laws of the People's Republic of
China with limited liability)

Announcement of Offer Price

Zhejiang Yongtai Technology Co., Ltd. ("Yongtai" or the "Company", and
together with its subsidiaries, the "Group"), a leading manufacturer of
fluorine-containing fine chemicals, today announces the successful pricing for
its offering of GDRs representing its A shares (the "Offering") at USD 9.41
per GDR (the "Offer Price"), with each GDR representing 5 A shares of the
Company, each with a fully paid nominal value of RMB1.00 each (the "A
Shares").

 

Yingmei Wang, Chairwoman of the board of directors of the Company, commented:

"We are pleased to announce the pricing of the Company's GDR Offering today.
The successful listing on the Stock Connect segment of the Main Market of the
London Stock Exchange will help the Company to further expand its overseas
business and increase its influence over international capital markets. The
Company's leading fluorine-containing fine chemicals business and future
strategies of expanding its global presence were fully recognised by
international investors. We are glad that respected investors from
international institutions will join us as GDR holders.

We would like to thank all parties for making this successful issuance happen,
especially key regulators who provided strong support and worked closely with
us, the Shenzhen Stock Exchange and the London Stock Exchange."

Offering Highlights

·      The Offer Price has been set at USD 9.41 per GDR. The Prospectus
relating to the Offering will be submitted for approval with the FCA and is
expected to be published on 6 July 2023. A copy of the Prospectus, following
publication, will be available on the Company's website at
http://www.yongtaitech.com, subject to certain access restrictions.

·      The Offering consists of 7,438,900 GDRs equating to an offer size
of USD 70.0 million and representing 4.24% of the Company's outstanding A
Share capital.

·      Conditional trading in the GDRs on the LSE is expected to
commence on a "when-issued" basis on 6 July 2023. The GDRs are expected to be
admitted to listing on the standard segment of the Official List maintained by
the FCA and to trading on the Stock Connect segment of the Main Market of the
LSE, and unconditional trading in the GDRs is expected to commence on 11 July
2023.

·      Huatai Financial Holdings (Hong Kong) Limited is acting as sole
global co-ordinator (the "Sole Global Co-ordinator") and joint bookrunner, and
China Securities (International) Corporate Finance Company Limited and CLSA
Limited are acting as joint bookrunners (together with the Sole Global
Co-Ordinator, the "Joint Bookrunners").

 

Overview of the Group

The Group is a leading manufacturer of fluorine-containing fine chemicals, and
is one of the few enterprises in the industry that operates in both inorganic
fluorochemical and organic fluorochemical industries. The Group has built up
vertically integrated industry chains with a rich product portfolio and matrix
covering the upstream, midstream and downstream sectors in the industries it
operates in.

The Group has a horizontally diversified business structure covering
performance materials (new energy lithium battery materials and liquid crystal
materials), pharmaceutical products, crop science products and trading
business.

·      Performance Materials (New Energy Lithium Battery Materials and
Liquid Crystal Materials) Business: By expanding to upstream lithium fluoride
raw materials and downstream electrolyte products, the Group has formed a
vertically integrated industrial chain covering products from upstream raw
materials for lithium salts, to lithium salts, additives and electrolyte
solutions. The Group's performance materials (new energy lithium battery
materials and liquid crystal materials) mainly include new energy lithium
battery material products (LiPF6 (lithium hexafluorophosphate), LiFSI (lithium
bis (fluorosulfonyl) imide), VC (vinylene carbonate), FEC (fluoroethylene
carbonate), electrolyte solutions) and fluoro liquid-crystal intermediates.

 

·      Pharmaceutical Product Business: By expanding to high value-added
downstream sectors, such as active pharmaceutical ingredients ("APIs") and
finished dosages, the Group has developed a vertically integrated industrial
chain covering key pharmaceutical fluorine-containing intermediates,
pharmaceutical APIs and pharmaceutical finished dosages in the fields of
cardiovascular, diabetes, central nervous system, anti-infection, and
anti-virus.

 

·      Crop Science Product Business: By expanding to high value-added
downstream sectors, such as active crop science ingredients ("AIs") and crop
science formulations, the Group has developed a vertically integrated
industrial chain covering crop science intermediates, crop science AIs and
formulations including fluorinated herbicides, fungicides and insecticides.

 

·      Trading Business: The Group also conducts trading business, the
business models for which include a contract manufacturing organisation model.
The Group's subsidiary Shanghai E-tong Chemical Co., Ltd. ("Shanghai E-tong")
provides technical or financial support to domestic manufacturers to produce
designated AIs and formulations, and then sells the products to domestic and
overseas customers. The Group also adopts an original equipment manufacturing
model, whereby Shanghai E-tong delegates domestic manufacturers to produce
formulations with Shanghai E-tong's brand and mainly sells products to
overseas markets such as Indonesia and Nigeria. Meanwhile, Shanghai E-tong
also purchases crop science products and other fine chemicals in China and
resells them to domestic and overseas trading companies and end-customers.

Over the years, the Group has experienced significant growth in operating
income and net profit. For the years ended 31 December 2020, 2021, 2022 and
three months ended 31 March 2022 and 2023, the Group's total operating income
was RMB3,450.3 million, RMB4,468.7 million, RMB6,336.2 million, RMB1,737.3
million and RMB1,005.9 million, respectively. During the same period, the
Group's total net profit was RMB77.7 million, RMB332.2 million, RMB659.6
million, RMB433.5 million and RMB17.0 million, and its return on equity was
3.7%, 8.1%, 16.0%, 11.0% and 0.4%, respectively, providing a good return to
the Group's shareholders.

Corporate Information

Zhejiang Yongtai Technology Co., Ltd. is a joint stock company with limited
liability established pursuant to the Company Law of the People's Republic of
China.

The Company's registered office is located at No. 1 Donghai Fifth Avenue,
Linhai Park, Zhejiang Chemical API Base, Zhejiang Province, China.

For further information, please visit the website of the Company at
http://www.yongtaitech.com, or contact +86 0576-85588006.

Disclaimer / Forward Looking Statements

The contents of this announcement have been prepared by and are the sole
responsibility of the Company.

The information contained in this announcement is for background purposes only
and does not purport to be full or complete nor does it constitute or form
part of any invitation or inducement to engage in investment activity, nor
does it constitute an offer or invitation to buy any securities in any
jurisdiction including the United States, or a recommendation in respect of
buying, holding or selling any securities. No reliance may be placed by any
person for any purpose on the information contained in this announcement or
its accuracy, fairness or completeness.

This announcement is not for publication or distribution, directly or
indirectly, in or into the United States (including its territories and
possessions, any state of the United States and the District of Columbia),
Australia, Canada, Japan, South Africa, the People's Republic of China or any
other jurisdiction where to do so would constitute a violation of the relevant
laws of such jurisdiction. The distribution of this announcement may be
restricted by laws in certain jurisdictions and persons into whose possession
any document or other information referred to herein come should inform
themselves about and observe any such restriction. Any failure to comply with
these restrictions may constitute a violation of the securities laws of any
such jurisdiction.

This announcement is an advertisement and not a prospectus and, further, is
not an offer to sell, or solicitation of an offer to buy, acquire or subscribe
for, or otherwise invest in, any securities to any person in any jurisdiction,
including without limitation those in the United States (including its
territories and possessions, any state of the United States and the District
of Columbia), Australia, Canada, Japan, South Africa, the People's Republic of
China or in any other jurisdiction in which such offer or solicitation would
be unlawful. The GDRs have not been, and will not be, registered under the US
Securities Act of 1933, as amended (the "Securities Act"), or the securities
laws of any state of the United States and may not be offered or sold in the
United States unless registered under the Securities Act or pursuant to or an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act and any applicable state or local
securities law. The Company has not made and does not intend to make any
public offer of securities in any jurisdiction, including, without limitation,
the United States.

For persons in any member state of the European Economic Area (the "EEA"),
this announcement is only addressed to and directed at persons who are
"qualified investors" ("Qualified Investors") within the meaning of Article
2(e) of the Regulation (EU) 2017/1129.

For persons in the United Kingdom, this announcement is only addressed to and
directed at persons who are "qualified investors" within the meaning of
Article 2(e) of Regulation (EU) 2017/1129 as it forms part of retained EU law
as defined in the European Union (Withdrawal) Act 2018 and who (i) have
professional experience in matters relating to investments falling within
Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended (the "Order"), (ii) are high net worth
entities who fall within Article 49(2)(a) to (d) of the Order, or (iii) are
otherwise persons to whom it may otherwise lawfully be communicated (all such
persons being referred to as "relevant persons").

This announcement must not be acted on or relied on (i) in the United Kingdom,
by persons who are not relevant persons, and (ii) in any member state of the
EEA, by persons who are not Qualified Investors. Any investment or investment
activity to which this announcement relates is available only to and will only
be engaged with (i) in the United Kingdom, relevant persons, and (ii) in any
member state of the EEA, Qualified Investors.

This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believe", "expect", "anticipate", "intend", "estimate", "forecast",
"project", "will", "may", "target", "should" and similar expressions, or, in
each case, their negative or other variations or comparable terminology, or by
discussions of strategies, plans, objectives, goals, future events or
intentions. Forward-looking statements may and often do differ materially from
actual results. Any forward looking statements reflect the Company's current
view with respect to future events and are subject to risks relating to future
events and other risks, uncertainties and assumptions relating to the Group's
business, results of operations, financial position, liquidity, prospects,
growth and strategies. Forward looking statements speak only as of the date
they are made.

To the fullest extent permitted under applicable laws, the Company and each of
the Joint Bookrunners and their respective affiliates expressly disclaims any
obligation or undertaking to update, review or revise any forward looking
statement contained in this announcement whether as a result of new
information, future developments or otherwise.

Any subscription or purchase of GDRs in the Offering should be made solely on
the basis of information contained in the Prospectus which may be issued by
the Company in connection with the Offering. The information in this
announcement is subject to change. Before subscribing for or purchasing any
GDRs, persons viewing this announcement should ensure that they fully
understand and accept the risks which will be set out in the Prospectus if
published. No reliance may be placed for any purpose on the information
contained in this announcement or its accuracy or completeness. This
announcement shall not form the basis of or constitute any offer or invitation
to sell or issue, or any solicitation of any offer to purchase or subscribe
for any GDRs or any other securities nor shall it (or any part of it) or the
fact of its distribution, form the basis of, or be relied on in connection
with, any contract therefor.

The timing of Admission may be influenced by a variety of factors which
include market conditions. The Company may decide not to go ahead with the
proposed Offering and/or Admission and therefore there is no guarantee that
the Prospectus will be published, the proposed Offering will proceed or
Admission will occur. Potential investors should not base their financial
decision on the Company's intentions in relation to Admission or this
announcement. Acquiring investments to which this announcement relates may
expose an investor to a significant risk of losing all of the amount invested.

Persons considering making investments should consult an authorised person
specialising in advising on such investments. This announcement does not
constitute a recommendation concerning the Offering. The value of GDRs can
decrease as well as increase. Past performance is not a guide to future
performance. Information in this announcement cannot be relied upon as a guide
to future performance. Before purchasing any securities in the Company,
persons viewing this announcement should ensure that they fully understand and
accept the risks which will be set out in the Prospectus, if published.
Potential investors should consult a professional advisor as to the
suitability of the Offering for the person concerned.

None of the Company, the Joint Bookrunners or any of their respective
affiliates, or any of their or their affiliates' directors, officers,
employees, advisors or agents, accepts any responsibility or liability
whatsoever for or makes any representation or warranty, express or implied, as
to the truth, accuracy or completeness of the information in this announcement
(or whether any information has been omitted from the announcement) or that
any transaction has been or may be effected on the terms or in the manner
stated herein or as to the achievement or reasonableness of future
projections, management targets, estimates, prospects or returns, if any, or
any other information relating to the Company, its subsidiaries or associated
companies, whether written, oral or in a visual or electronic form, and
howsoever transmitted or made available or for any loss howsoever arising from
any use of the announcement or its contents or otherwise arising in connection
therewith. The Company, the Joint Bookrunners and their respective affiliates,
accordingly disclaim all and any liability whether arising in tort, contract
or otherwise which they might otherwise have in respect of this announcement
or its contents or otherwise arising in connection therewith.

The Joint Bookrunners and their affiliates are acting exclusively for the
Company and no-one else in connection with the Offering. They will not regard
to any other person as their respective clients in relation to the Offering
and will not be responsible to anyone other than the Company for providing the
protections afforded to their respective clients, nor for providing advice in
relation to the Offering, the contents of this announcement or any
transaction, arrangement or other matter referred to herein.

Huatai Financial Holdings (Hong Kong) Limited, China Securities
(International) Corporate Finance Company Limited and CLSA Limited are
licensed by the Securities and Futures Commission of Hong Kong.

In connection with the Offering, the Joint Bookrunners and/or any of their
respective affiliates and/or funds managed by affiliates of the Company acting
as an investor for its or their own account(s) may subscribe for the GDRs and,
in that capacity, may retain, purchase, sell, offer to sell or otherwise deal
for its or their own account(s) in such GDRs, any other securities of the
Company or other related investments in connection with the Offering or
otherwise. Accordingly, any references in the Prospectus, if published, to the
GDRs being issued, offered, subscribed, acquired or otherwise dealt in should
be read as including any issue or offer to, or subscription, acquisition or
dealing by, the Joint Bookrunners and/or any of their respective affiliates
and/or funds managed by affiliates of the Company acting in such capacity. In
addition, certain of the Joint Bookrunners or their affiliates may enter into
financing or hedging arrangements (including swaps) with investors in
connection with which such Joint Bookrunners (or their affiliates) may from
time to time acquire, hold or dispose of GDRs. Neither the Joint Bookrunners
nor any of their respective affiliates intend to disclose the extent of any
such investment or transactions otherwise than in accordance with any legal or
regulatory obligation to do so.

No stabilisation will be carried out in connection with the Offering.

Unless otherwise indicated, market, industry and competitive position data are
estimates (and accordingly, approximate) and should be treated with caution.
Such information has not been audited or independently verified, nor has the
Company ascertained the underlying economic assumptions relied upon therein.

Certain data in this announcement, including financial, statistical, and
operating information has been rounded. As a result of the rounding, the
totals of data presented in this announcement may vary slightly from the
actual arithmetic totals of such data. Percentages in tables may have been
rounded and accordingly may not add up to 100%.

For the avoidance of doubt, the contents of the Company's website are not
incorporated by reference into, and do not form part of, this announcement.

 

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