On June 28, 2024, Coland Ocean Group Limited (referred to as "Ocean Sky Int'l"), from Fujian Fuzhou, submitted a prospectus to the Hong Kong Stock Exchange and plans to list its shares on the main board of Hong Kong Stock Exchange.

Link to Gao Long Ocean Group's prospectus:

https://www1.hkexnews.hk/app/sehk/2024/106581/documents/sehk24062803469_c.pdf

Main Business

Founded in 2008, Gao Long Ocean Group is a leading enterprise in the refining and concentration of feed-grade and food-grade fish oil. The company has been engaged in feed-grade fish oil refining and started to venture into the food-grade fish oil refining and concentration business in 2016.

According to a report from Zhuoshi Consulting, by sales revenue in 2023, Gao Long Ocean Group ranks first in the Chinese feed-grade fish oil refining and concentration market with a market share of 24.8%, and also ranks first in terms of exports of feed-grade fish oil, accounting for 9.8% of the total fish oil exports. By sales revenue in 2023, the company ranks eighth in the Chinese food-grade fish oil refining and concentration market with a market share of 3.2%. In 2023, the company will have the largest fish oil refining and concentration capacity in China.

Gao Long Ocean Group is one of the promoters of the development of the fish oil industry in China. The company, as one of the main drafting units, participated in the formulation of Chinese fish oil product standards, namely the standard of polyunsaturated fish oil products (SC/T 3503-2022), which is a national standard of the People's Republic of China seafood industry. The company is currently participating in the formulation of the national food industry standard for sturgeon, sardine, tuna and fish oil and food fish oil of the People's Republic of China by the State Administration of Grain and Material Reserves.

Gao Long Ocean Group's products can be roughly divided into two categories: (i) feed-grade fish oil with EPA and DHA combination ratio of 25% or lower, used to supplement the nutrition of animal feed; and (ii) food-grade fish oil with EPA and DHA combination ratio of 30% to 75%, which can be used to produce fish oil capsules and health products for human consumption, or further processed by our customers into pharmaceutical grade fish oil. According to Zhuoshi Consulting report, the company is able to refine and concentrate food-grade fish oil with an EPA and DHA combination ratio of up to 75%, which is considered an advanced level in China.

Shareholder Structure

According to the prospectus, before the IPO, Huang Jin (formerly known as Huang Longji) and Dong Qing, husband and wife, collectively held 100% of the shares in Gao Long Ocean Group's ownership structure.

Management Team

The board of directors of Gao Long Ocean Group consists of 7 directors, including:

• 3 executive directors: Mr. Huang Jin (Chairman), Mr. Ren Xiaosong (CEO), and Ms. Huang Xin (CEO);

• 1 non-executive director: Ms. Dong Qing;

• 3 independent non-executive directors: Dr. Su Sijin, Mr. Leng Kailiang, and Ms. Huang Xinqi.

In addition to the executive directors, the senior management team of Gao Long Ocean Group includes Mr. Chen Weisen, the CFO and company secretary, Mr. Lin Lan, the chief operating officer of Gao Long Marine Biotechnology, and Mr. Chen Xiaojun, the deputy general manager of Gao Long Marine Biotechnology.

Corporate Performance

According to the prospectus, the company's revenue for the fiscal years ending March 31, 2022, 2023, and 2024 was HKD 246 million, HKD 464 million, and HKD 532 million, respectively, and the net profits were HKD 14.185 million, HKD 69.629 million, and HKD 60.064 million, respectively.

Intermediary Team

The main intermediaries of Gao Long Ocean Group's IPO are: Yuexiu Financing as its exclusive sponsor; Dahua Marsyun as its auditors; Jintian Cheng and Lobo as its Chinese and Hong Kong legal advisers, respectively; Xinda as its brokerage's Chinese legal adviser; and Zhuoshi Consulting as its industry consultant.