Futu News on October 31st, this Friday night$Shangkun Real Estate (06900.HK) $The company will issue 500 million shares from October 31 to November 10, including a public offering of 50 million shares and an international offering of 450 million shares at an issue price of HK $1.70 to HK $2.50 per share, 2000 shares per share, which is expected to be listed on November 17.

It is reported that Shangkun Real Estate is a rising property developer, the company's business began to develop its first property project in Shanghai in 2010, and then further deepened its penetration in the Yangtze River Delta Economic Zone and expanded to the Pearl River Delta Economic Zone and the central core economic zone. The company's business activities mainly include property sales, property leasing and consulting services.

According to the data of China Real Estate Association, Shanghai E-House Real Estate Research Institute and China Real Estate Evaluation Center, the company ranked 79th (in terms of comprehensive strength) among the top 100 real estate development enterprises in China in 2020.

In terms of financial data, the company's total income from fiscal year 2017 to fiscal year 2019 was 1.201 billion yuan, 6.847 billion yuan and 7.535 billion yuan respectively, with a compound annual growth rate of 150.5%. In the same period, net profit was 35 million yuan, 673 million yuan and 677 million yuan respectively, with a compound annual growth rate of 342.4%. In the first four months of 2020, the company recorded a profit of 1.149 billion yuan and a net profit of 158 million yuan.

In terms of industry, China's residential property market showed strong resilience and was still overheated in 2019, according to data from China's National Bureau of Statistics. Despite the government's macro-control policies to control speculative real estate investment and increase the supply of comfortable housing, total investment in the residential property market has increased from 5.895 trillion yuan in 2013 to 9.707 trillion yuan in 2019, with a compound annual growth rate of 8.7 percent. Among them, the average selling price of residential properties increased from 5850 yuan per square meter in 2013 to 9287 yuan per square meter in 2019, with a compound annual growth rate of 8.0 percent.

In terms of fund-raising purposes, the company intends to use the net proceeds from the share sale for the following purposes: about 60% will be used for the construction cost of developing the company's existing property projects within one year after listing; about 30% will be used to repay two existing interest-bearing banks and other loans developed by the company's projects; and about 10% will be used for general working capital purposes.