At present, the subsidiary of Zhengzhou Zhongrui Industrial Group Limited (hereafter “Zhongrui Industrial”) successfully issued USD senior debt securities. First Capital Securities Limited (“FC Securities”), the wholly-owned subsidiary of China First Capital Group Limited (“FC Group”; stock code: 1269.HK) served as its Joint Book Runner and Joint Lead Manager.
Zhongrui Industrial offered a total of USD 85 million debt securities with the funds raised mainly used for developing supply chain business as well as supplementing working capital and existing liabilities replacement. The Company is rated as B2 (stable) by Moody and debt rating is B3 (stable). The Global Coordinators of the offer are DBS Bank and 尚乘國際 (AMTD International?) and the Joint Book Runner and Joint Lead Manager include DBS Bank, 尚乘國際 (AMTD International?), FC Securities, BOC International and Haitong International, with underwriting shares of FC Securities amounting USD 30 million, which is one of the two largest orders.
Zhongrui Industrial mainly engaged in the business of supply chain management of bulk commodity, supply chain financing and real estate development. The main commodity types of supply chain management sectors of bulk commodity include coal, non-ferrous metals, oil products, grain and cotton etc. The real estate business is targeted to first-line and strong second-tier cities in China with high GDP and high growth, mainly Zhengzhou, Shenzhen, Tianjin, Guangzhou, Hangzhou, Nanjing and Suzhou etc. As at September 2017, a total of 57 projects were developed, making a good track record with a cumulative total construction area of 8.14 million square meters.
In 2016, the combined revenue of Zhongrui Industrial amounted to approximately 41.5 billion, with net profit of approximately 0.9 billion and total assets of approximately 52.6 billion. In September 2017, the combined revenue of Zhongrui Industrial amounted to approximately 32.8 billion, with net profit of approximately 0.5 billion and total assets of approximately 62 billion. Zhongrui Industrial ranked second in Henan Province and 112th nationwide in “2017 Top 500 Private Enterprises in China” published by the China Real Estate Chamber of Commerce.
With the advantages of double-drivers platform and collaboration and linkage home and abroad of “Education Operation plus Financial Services” of FC Group, FC Securities participated in underwriting for a series of major IPOs in Hong Kong in the past two years (among which, Postal Savings Bank of China (stock code: 1658.HK), China YuHua Education Corporation Limited (stock code: 6169.HK), Minsheng Education Group Company Limited (stock code: 1569.HK), Luzhou Xinglu Water (Group) Co., Ltd. (stock code: 2281.HK), China New Higher Education Group Limited (stock code: 2001.HK), Zhongyuan Bank Co., Ltd (stock code: 1216.HK) by effectively grasping opportunities in capital markets and with rich resources home and abroad and the coverage of many closely-connected quality investors.
Recently, FC Securities also served as Joint Book Runner and Joint Lead Manager of New Higher Education Group Limited (stock code: 2001.HK), the first education sector shares listed in Hong Kong in 2018. With a market share of approximately 1.40% among underwriters in terms of the amount of proceeds raised in IPOs in 2017, FC Securities ranked 21st as published by Bloomberg. And in terms of number of underwriting projects for PRC companies in Hong Kong in 2017, FC Securities ranked 9th.
Participating in the underwriting of debt securities of Zhongrui Industrial is a new breakthrough of FC Securities in the debt securities market in 2018. The significant contribution of FC Securities in the underwriting was also highly recognized by Zhongrui Industrial while it showed that FC Securities gradually have become one of the more active financial institutions with strong growth in the Hong Kong capital market. In the future, FC Securities will continue to consolidate its service advantage in the resource of quality investors’ network while continue to push forward overseas investment and financing business operations and strive to strengthen international competitiveness of investment banking business of the Company.