(Hong Kong, 18 December 2024) - China Risun Group Limited (“China Risun”, or the “Group”, stock code: 1907.HK), a leading global integrated coke, coking chemicals and refined chemicals producer and supplier and relevant operation management services provider in China is pleased to announce that the Group has successfully completed the announcement of the pricing, allotment and document signing for its top-up placing of existing shares and subscription of shares. USD 20 million, equivalent to HK156 million, was raised through the issue of 52 million new shares at the subscription price of HK3.00 cents per share, representing a discount of 12% compared with the closing price of HK3.41 cents per share on 17 December. This discount reflects the Group’s respect for the market and its return to investors, and provides a more ideal investment opportunity for the placees.
The net proceeds to be received by the Company from the Subscription, after deducting related fees and expenses, are estimated to be approximately HK$153.6 million. No fewer than six new shareholders were introduced for this placement, including major Chinese-owned, Hong Kong-funded and foreign-funded institutions, of which the largest shareholding is 20.8 million shares. The four largest investors hold more than 40 million shares, accounting for more than 80% of the placing shares. Guotai Junan and Macquarie acted as the joint coordinators, while seven institutions, including CITIC Securities, SDICSI, CCB International, Haitong and Shengyuan, also participated. The market subscription volume far exceeded expectations. Due to the restriction on the total number of new shares to be issued by some key regulators, it was decided that the issuance would be made mainly made to key institutions, of which the four largest institutions accounted for more than 80% of the total placed shares. The placement not only demonstrates the Group's attractiveness to the capital market, but also provides a strong impetus for its future development.
The success of this placement, subscription and transaction has far-reaching significance for China Risun. First, it can further expand the Group’s shareholder base, optimize its capital structure, and provide stronger financial support for its future development. Second, the introduction of new investors allows China Risun to expand its shareholder network, enhance its interaction and communication with the capital market, and further strengthen its reputation and influence. Additionally, the placement also highlights China Risun’s operational capabilities and the market recognition it has gained from the capital market, which can lay a solid foundation for future financing and expansion.
The Group will use the net proceeds (after deducting related fees and expenses) to further develop the business and implement strategic planning. Specifically, the proceeds will be used to expand product lines, strengthen technological research and development, optimize capital structure, and enhance the Group's market competitiveness and profitability.
Notably, upon completion of the Placing, China Risun’s controlling shareholder, Texson Limited (wholly owned by Mr. Yang Xuegang), will not experience any significant change in its shareholding ratio and will maintain stable control over the Group. In addition, as the Placing Shares will be free from any liens, charges and encumbrances, and will have the same rights as and rank pari passu with all the other shares of the same class, they will not have an adverse impact on the rights and interests of existing shareholders.
China Risun has been deeply involved in the coking industry for 30 years and has developed into a global integrated chemical, coke, and hydrogen energy producer and supplier and operation management services provider. With a vertically integrated business model and rich industry experience, the Group has established an important position in the global market. On 15 March 2019, China Risun was successfully listed on the Main Board of the Hong Kong Stock Exchange and became a trading target under the Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect. It has been successively included in 25 indices, such as the Hang Seng Index, the FTSE Russell Index, and the MSCI Index, demonstrating its outstanding performance in the capital market. Looking ahead, the Group will continue to focus on the fine chemical product market with its vertically integrated business model and rich experience, expand its scale in the hydrogen energy industry, and explore new materials and other emerging fields. It will also take this placement and subscription transaction as an opportunity to further strengthen its technological research and development, optimize its product structure and improve its operational efficiency, thereby striving for sustained and steady performance growth. As always, the Group will continue to strengthen its interaction and communication with the capital market, actively respond to investors’ concerns and expectations, create greater value for shareholders, and provide more generous returns to investors.
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