Zhicheng Finance and Economics APP News, Baifeng Shares (06657) will conduct a global issuance of 9.262 million shares from June 28th, 2024 to July 4th, 2024, of which 10% will be sold in China Hong Kong and 90% will be sold internationally, with an additional 15% over-allotment option. The maximum offering price is HKD 40 per share, with each lot consisting of 100 shares, and trading of the company's listed H shares is expected to begin on the Hong Kong Stock Exchange at 9:00 am on July 9th, 2024.

The company has entered into a cornerstone investment agreement with Jiangsu Yuanli Industrial Investment Co., Ltd. (Jiangsu Yuanli), and the cornerstone investors have agreed to subscribe for a total of approximately 26 million Hong Kong dollars of offer shares at the offer price. Assuming an offer price of HKD 38.00 (i.e., the mid-point of the indicative offer price range set out in this prospectus), the total number of offer shares to be subscribed for by the cornerstone investors will be 6,842,100 H shares.

After deducting the estimated underwriting commission and other expenses and expenses paid or payble by the group for the global offering, assuming an offer price of HKD 38.00 per share and the over-allotment option is not exercised, the net proceeds from the global offering will be approximately HKD 246 million.

The Company intends to use the net proceeds of the global offering as follows: Approximately 31.5% of the net proceeds, or HKD 77.5 million, will be used to upgrade and enhance the functionality and features of the Group's solutions and further expand the Group's solution portfolio, including approximately 15.1% will be mainly used to upgrade the functionality and services of the Group’s existing solutions to meet the evolving needs of customers and approximately 16.3% will be used to launch new solutions. Approximately 29.4% of the net proceeds, or HKD 72.5 million, will be used to enhance the Group's research and development capabilities, including approximately 19.5% to expand the Group's internal research and development team and improve the Group's research and development efficiency; approximately 3.6% to optimize and develop the Group's existing infrastructure, and approximately 6.4% to build and upgrade the Group's middleware platform. Approximately 19.3% of the net proceeds, or HKD 47.5 million, will be used to develop the Group's sales and marketing plan. Approximately 11.5% of the net proceeds, or HKD 28.2 million, will be used for business synergy of the Group and strategically invest and acquire opportunities that complement or are synergistic with the business of the Group. Approximately 8.3% of the net proceeds, or HKD 20.5 million, will be used as operating capital and for general corporate purposes.

The Group is a provider of enterprise digital solutions in China, focusing on providing SaaS tax and financial digitization and data-driven analysis services. The Group handles various transaction vouchers, including but not limited to invoices, receipts, documents and other accounting vouchers, accurately reflecting the key business transactions of enterprises. With insights into a large amount of transaction data and equipped with big data analysis capabilities, the Group promotes automation and digital business decisions for financial service providers and other corporate clients.

The Group achieved significant growth during the last period. In 2021, 2022, and 2023, the Group's total revenue was RMB 454 million, RMB 526 million, and RMB 713 million, respectively. In 2021, 2022, and 2023, the Group's gross profit was RMB 216 million, RMB 214 million, and RMB 282 million, respectively. In 2021, 2022, and 2023, the Group's net loss was RMB 448 million, RMB 156 million, and RMB 359 million, respectively. In 2021, 2022, and 2023, the Group's adjusted net loss (measured by non-IFRS) was RMB 16.7 million, RMB 70.3 million, and RMB 83.4 million, respectively.