Introduction of shares

Main date:

Public launch closing date: 12: 00 noon on November 29, 2018

Announcement application results: December 11, 2018

Listing date: December 12, 2018

The family guarantor:

Yun Fu Rong Tong Co., Ltd.

Summary of statistics:

Number of shares sold: 400000000 shares

Proportion of shares sold publicly: 10%

Sales: HK $0.60 to HK $0.96

Estimated collection of funds: HK $240 million to HK $384 million

Income per hand: HK $4848.37

A summary of the collection

Jihua is a coal mining company located in Taizhou Province, China. At present, the collection is located in two underground coal mines in the Xisongshan coalfield, Luzhou City, Guizhou Province, China, namely Luoguo Coal Mine and Baogushan Coal Mine. The mechanized longwall backward return underground coal mining method is used to open up raw coal in Kuoguo coal mine and Baogushan coal mine, mainly for 1 kilogram and 3 kilowatt coking coal.

The market usually sells coal directly to customers, but it also sells some coal products to barter companies in southwest China. The end-end customers of the collection include coking coal enterprises and manufacturers of coking coal or chemicals located in southwest China with the production capacity of coking coal, as well as power generation stations in Liushui City.

Industry summary

According to Frost Sullivan's report, according to output statistics, the market size of China's 1xt coking coal has increased from 163 million tons in 2013 to 136 million tons in 2017, with a compound annual growth rate of-4.3 percent. The expected market regulation model will increase from 143 million tons in 2018 to 152 million tons in 2022, with a compound annual growth rate of 1.6 percent. The increase in the size of the market is due to the sustained development of China's metallurgical and metallurgical industries.

Cymbals

The concentrate coal products (1x3t coking coal) are mainly sold to coking enterprises, cokes or chemical manufacturers with coke production capacity in southwest China. The heavy downturn in these industries and the sharp drop in coke demand may lead to a significant decline in demand for market products and have a significant adverse impact on the business, business conditions and operating conditions of the market. Therefore, the responsibilities and prospects of the market depend to a large extent on China's economic growth.

Valuation

According to the IPO documents, assuming that the global development sale was completed on May 31, 2018, 16 shares were expected to be issued after the sale of the shares was completed, and a dividend of 146 million yuan was declared on July 26, 2018, equivalent to 0.45 yuan to 0.52 yuan per share of tangible assets.