New Stock News | Gao Long Ocean plans for Hong Kong IPO. China Securities Regulatory Commission requires additional explanation of changes in equity.

On July 26, the China Securities Regulatory Commission announced the requirements for supplementary materials for overseas issuance and listing approval (July 19, 2024 - July 25, 2024). Among them, the CSRC requested Gaolong Ocean to provide additional explanations regarding the equity changes related to the tax payment situation of the equity transfer of Fujian Gaolong Ocean Bioengineering Co., Ltd. in March 2016, which should comply with the effective tax regulations and supervision at that time. According to the disclosure of the Hong Kong Stock Exchange on June 28, Gaolong Ocean Group Limited (referred to as Gaolong Ocean) has submitted an IPO application to the Hong Kong Stock Exchange, with Yuexiu Financing as the exclusive sponsor. Regarding the issuance plan, the CSRC requested Gaolong Ocean to explain (1) whether the company has exercised the oversubscription option. If it has been confirmed, explain the number of shares issued in this case, the percentage of total shares after issuance, the expected amount of funds raised, and list the changes in equity structure before and after issuance. (2) The progress of the domestic investment supervision procedures for Phase II construction of the Lianjiang production base project, as well as the necessity and rationality of financing. It is reported that Gaolong Ocean is a leading enterprise in the refining and concentration of feed-grade and food-grade fish oil, and also one of the promoters of the development of China's fish oil industry. According to the information from Zhuo Shi Consulting, the market for the refining and concentration of fish oil in China is highly concentrated. In 2023, the market share of the top five market participants accounts for approximately 57% of sales revenue. In 2023, both in terms of sales revenue and export amount, Gaolong Ocean is the largest feed-grade fish oil refining and concentration enterprise in China. In the financial years of 2021/22, 2022/23, and 2023/24, the company's total revenue reached approximately HK$246 million, HK$464 million, and HK$532 million, respectively. The net profit of the company was approximately HK$14.185 million, HK$69.629 million, and HK$60.064 million, respectively.