Futu news on December 30th$99 (09922.HK) $According to the announcement, the company intends to issue 333.4 million shares from December 30, 2019 to January 8, 2020, of which Hong Kong shares account for 10% and international issues account for 90%, with an over-allotment option of 15% at an issue price of HK $5.50-6.60 per share, 1000 shares per share. it is expected to be listed on January 15, 2020.

It is reported that Jiumaojiu is a Chinese catering group with chain operation as its core, focusing on providing fast food services and creating a casual and high-end atmosphere through the modern decoration of restaurants mainly located in shopping malls. it has more than 24 years of catering business history in China. At present, the company manages and operates five independent brands, including "Jiumaojiu", "Taier", "2 egg pancakes", "pussy", and "Uncle Nawei is the chef".

According to Frost Sullivan, the company ranked third among all Chinese fast fashion restaurants in China in 2018 and first in South China in terms of revenue. As of the last feasible date, the company operates 269 restaurants and manages 41 franchised restaurants covering 31 cities in China, covering 4 municipalities in 11 provinces.

In terms of financial data, the revenue of the 99 Maojiu Group increased rapidly during the track record period. In 2016, 2017 and 2018, the company's total revenue was 1.164 billion yuan, 1.469 billion yuan and 1.892 billion yuan respectively, with a compound annual growth rate of 27.5%. In the same period, the company recorded a net profit of 51.286 million, 71.647 million and 73.848 million yuan, with an annual compound growth rate of 20%. Revenue in the first six months of 2019 was 1.237 billion yuan, up 41.5% from a year earlier. In the same period, the net profit was 102 million yuan, an increase of 87.6% over the same period last year.

In terms of industry, the total revenue of China's Chinese fast fashion catering market in 2018 is 181.5 billion yuan, about 4.2% of China's catering service market, and is expected to reach 7.7% in 2024. At the same time, the total size of China's fast-fashion food market is expected to further increase to 550.2 billion yuan in 2024 at a compound annual growth rate of 20.3%.

In the pattern of Chinese fast fashion catering market, the leading restaurant chain enterprises have strong competitiveness, bring a higher threshold of entry and market concentration. The leading enterprises with better supply chain system, higher standardization level and stronger capital support show greater competitive advantage and occupy more market share.

As for cornerstone investors, a number of cornerstone investors agreed to subscribe for a total of about US $55 million of the offering shares available at the offering price, including BlackRock Funds,China Alpha, WT Investment Management, GSC Fund One and Vision Fund 1.

In terms of fund-raising purposes, the company intends to use the net proceeds from the share sale for the following purposes: about 72.0% of the net proceeds will be used to expand the company's restaurant network; about 7.0% will be used to further enhance the supply and support capacity of the company's restaurants and improve the company's centralized procurement system; about 11.0% will be used to repay part of the loans; and about 10.0% will be used for the company's working capital and general corporate purposes.