According to the Zhitong Finance App, Dream Gold Garden (02585) will raise shares from November 21, 2024 to November 26, 2024. The company plans to sell 43.9568 million H shares globally, of which the Hong Kong public sale accounts for about 10%, international sales account for about 90%, and 15% over-allotment rights. The offer price will be HK$12-14.4 for each offered share. It is expected that H shares will start trading on the Stock Exchange on November 29, 2024 (Friday). H shares will be traded as 200 H shares per trading unit.

The Group has cooperated with various cornerstone investors (namely Tianjin Haitai Capital Investment Management Co., Ltd.), Matrix Capital Limited (Matrix Capital), Solid Elegance International (Hong Kong) Limited (Solid Elegance), Bright Ambition International Limited (Bright Ambition International) Ambition) and Swift Grace (Hong Kong) Limited (Swift Grace), all known as Cornerstone Investors, collectively referred to as Cornerstone Investors) entered into a Cornerstone Investment Agreement.

Cornerstone Investors have agreed (subject to certain conditions) to subscribe or induce their designated entities to subscribe for a certain number of shares (rounded down to the nearest complete trading unit of 200 H shares per lot) that can be purchased at a total amount of RMB0.197 billion (including brokerage commissions, SFC transaction levies, SEC transaction levies, taxes and other costs (if applicable)). Assuming an offering price of HK$13.20 (that is the median of the indicative offer price range set out in this prospectus), the total number of shares to be subscribed by Cornerstone Investors will be 15.8906 million offering shares.

Assuming that the offering price is HK$13.20 per H share (the median of the indicative offer price range as described in this prospectus) and assuming that the over-allotment rights are not exercised, the Group estimates that after deducting the underwriting commissions, fees and estimated expenses payable by the Group in connection with the global offering, the Group will receive approximately HK$0.502 billion in net proceeds from the global offering. Assuming that the offer price is the median of the indicative offer price range and the over-allotment rights have not been exercised, the Group currently intends to use the net proceeds for the following purposes:

Approximately 50.0% will be used to upgrade production facilities in Weifang, Shandong to enhance the Group's production capacity to further achieve business growth; approximately 34.0% will be used to expand and strengthen the Group's sales network. The Group plans to achieve this through (i) establishing its own stores and (ii) increasing the scale and operation of the Group's seven self-operated direct sales area service centers. Approximately 31.0% of this will be used to set up 33 new self-operated stores. Approximately 3.0% will be used to improve the scale and operation of seven self-operated directly-operated district service centers; approximately 16.0% will be used to invest in information technology. Approximately 10.0% of this will be used to improve the Group's operational efficiency through the acquisition of an integrated digital operating data system (i.e. enterprise digital management system (EDM system)). Approximately 6.0% will be used to strengthen the Group's production line and inventory management by integrating advanced digital elements into the Group's production chain.

The Group is an original gold jewelry brand manufacturer (OBM) focusing on the third-tier urban markets in China and below. According to Frost & Sullivan, as of the last practical date, the Group is one of the few companies that have implemented operations covering all key aspects of the gold and jewelry industry (from procurement and refining of raw materials, R&D, product design, manufacturing to retail through diversified sales networks). The Group's operations cover these key aspects of the gold and jewellery industry. The Group is committed to quality control in every aspect.

The Group mainly sells products through a franchise network. In addition, the Group also provides products to customers through online sales through its own stores and e-commerce platforms. As of June 30, 2024, the Group has established comprehensive sales channels, covering 2,850 franchise stores operated by 1,670 franchisees, 7 self-operated direct sales area service centers and 17 provincial agents, and a franchise network including 36 self-operated stores and mainstream e-commerce platforms entering online stores. The Group has a strong market position in China's third-tier cities and below. According to Frost & Sullivan, these markets have high potential for growth.

During the track record period, the Group's revenue for the year ended 31 December 2021 was RMB 16.871 billion, and RMB 15.724 billion for the year ended 31 December 2022, increasing to RMB 20.209 billion for the year ended 31 December 2023. In the same period, revenue from sales of gold jewelry and other gold products reached 97.5%, 97.9% and 98.4%, respectively. Net profit was RMB 0.225 billion for the year ended December 31, 2021, and RMB 0.181 billion for the year ended December 31, 2022 increased to RMB 0.234 billion for the year ended December 31, 2023. Revenue for the six months ended June 30, 2024 reached RMB 9.98 billion, a year-on-year increase of 7.1% over the six months ended June 30, 2023. Net profit for the six months ended June 30, 2024 reached RMB 52.3 million.