Zhitong Finance APP News, Xirui (02507) will IPO from June 28th, 2024 to July 9th, 2024, intending to issue 54,875,900 shares globally, of which 10% will be sold in Hong Kong, China and 90% will be sold internationally, with an additional 15% over-allotment option. The offering price is HKD 27.34-28 per share, 100 shares per lot, and the expected shares will be traded on the Stock Exchange of Hong Kong (SEHK) at 9:00 a.m. on July 12th, 2024.

The company has entered into cornerstone investment agreements with cornerstone investors that have agreed to purchase some of the issued Shares at the offer price, or to cause their respective designated entities (including qualified domestic institutional investors (QDII) qualified by related Chinese agencies) to purchase some of the offered Shares, for a total of approximately HKD851 million, subject to certain conditions. Assuming an offer price of HKD27.67 per Share (i.e., the midpoint of the indicative offer price range set out in this prospectus), the aggregate amount of Shares agreed to be subscribed for by cornerstone investors, and (in the case of cornerstone investors subscribing for the Shares through QDII) QDII, would be an aggregate of 30,768,500 Shares. Cornerstone investors include China State-owned Enterprise Structural Adjustment Fund II Co., Ltd. (CSAF II), Taicang High-tech Innovation Development Co., Ltd. (Taicang High-tech), Changshu Southeast Industrial Investment Co., Ltd. (Changshu Southeast), Wuxi Jianfa Xintou Aviation Investment Enterprise (Limited Partnership) (Wuxi Jianfa Xintou), and Wuxi Jintou Lianying Industrial Investment Enterprise (Limited Partnership) (Wuxi Jintou).

Assuming an offer price of HKD27.67 per Share (i.e., the midpoint of the indicative offer price range), and after deducting the underwriting commission paid and payable by the Group with respect to the global offering (assuming no exercise of over-allotment option and adjustment option with respect to the size of the offering), the net proceeds from the global offering to be received by the Group would be approximately HKD1,394 million.

The Group intends to use the net proceeds from the global offering (assuming no exercise of over-allotment and adjustment options with respect to the size of the offering) of approximately HKD1,394 million (assuming an offer price of HKD27.67 per Share) for the following purposes: 30%, or approximately HKD418 million of the net proceeds, will be used to further drive the Group's product portfolio, existing products, features and functionalities, as well as extending the life cycle of the Group's product portfolio: Approximately 7% of this will be used to continue to develop and integrate new features, reliability improvements, and technological optimizations for new aircraft and existing models targeted at the private aviation market; approximately 18% of this will be used to develop product lifecycle management and sustained engineering solutions; approximately 5% of this will be used to allocate funds for advanced technology and innovation research and development. 30%, or approximately HKD418 million of the net proceeds, will be used to enhance the Group's production efficiency and capacity: Approximately 15% of this will be used to enhance the Group's capacity and capabilities; approximately 15% of this will be used to improve production and operating efficiency. 30%, or approximately HKD418 million of the net proceeds, will be used to provide funds to enhance and expand products and services provided within the Group's ecosystem with respect to enhancing and expanding services, sales and support for the Group's ecosystem: Approximately 12% of this will be used to directly or indirectly broaden the Group's services network and continue to expand the geographical scope of the Group's ecosystem and support the Group's product and service portfolio; approximately 11% of this will be used to expand the services offered through the Group's ecosystem in the western and central northern regions of the United States, certain European markets, and/or Brazil; approximately 7% of this will be used to expand capacity at the Group's factory service centers and authorized service centers within the ecosystem. 10%, or approximately HKD140 million of the net proceeds, will be used for the Group's general working capital and other general corporate purposes.

The Group is a pioneer and global market leader in the private aviation industry. The Group designs, develops, manufactures, and sells industry-recognized high-quality aircraft with innovations in safety, technology, connectivity, performance, and comfort. The Group's two aircraft product lines, the SR2X series and the Vision Jet, have established themselves as industry standards for personal aircraft, and have been certified and verified in more than 60 countries to date. According to the General Aviation Manufacturers Association and Frost Sullivan's data, the SR2X series of aircraft has been the best-selling single-engine piston aircraft model for the past 22 years. Since its first delivery in 2016, the Vision Jet has allowed owners to fly at jet speeds without the need for professional pilots or flight departments, and has been the best-selling business jet for six consecutive years, according to the General Aviation Manufacturers Association and Frost Sullivan's data. In order to make aircraft ownership and operation accessible and efficient for everyone, the Group's goal is to create a unique 'Cirrus Life' experience for its customers through its products and related extensive services, including maintenance, upgrades, training, and social activities of Westray's brand.

Leveraging the Group's market leadership, continuous product innovation, and expanding ecosystem, the Group has achieved impressive financial performance records. As of and for the years ended December 31, 2021, 2022, and 2023, the Group's revenue was USD738 million, USD894 million, and USD1,068 million, respectively, with a compound annual growth rate of 20.3%, and annual profit of USD72.4 million, USD88.1 million, and USD91.1 million, respectively, with a compound annual growth rate of 12.2%. As of the year ended December 31, 2023, the Group's adjusted net profit attributable to equity holders (a non-IFRS financial measure) was USD98.4 million. As of the year ended December 31, 2023, the Group's return on equity and adjusted EBITDA margin (non-IFRS financial measures) were 21.1% and 15.2%, respectively. As of December 31, 2023, the Group's leverage ratio was 0.1. As of the feasible date, the Group had a reserve of 1,320 aircraft.