New Stock News | Hong Kong Electric Appliances Plans for IPO on Hong Kong Stock Exchange, China Securities Regulatory Commission Requires Supplemental Explanation on Major Debt Issues and Other Matters

On November 15, the China Securities Regulatory Commission announced the requirements for supplementary materials for overseas issuance and listing application disclosure (from November 8, 2024 to November 14, 2024), where it mentioned that Hong Jiang Electric should provide supplementary explanations on major debt situations. According to the disclosure of the Hong Kong Stock Exchange on September 29, Hubei Hongjiang Electric Co., Ltd. (Hongjiang Electric) submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Sinolink (Hong Kong) as the exclusive sponsor. Specifically, the China Securities Regulatory Commission disclosed that Hongjiang Electric should provide supplementary explanations and have lawyers verify and provide clear legal opinions on the following matters: 1. Please provide supplementary explanations on major debt situations. 2. Please provide supplementary explanations on the previous application for A-share issuance and listing, and whether there are any significant impacts on this issuance and listing. The prospectus shows that Hongjiang Electric is a manufacturer of quality household products in China. It mainly operates in an ODM/OEM mode and has established a customer base consisting of globally renowned and historically significant brands, such as Walmart, Telebrands, SEB, Sensio, Hamilton Beach, and Philips. With its capabilities in design, development, and manufacturing of various small household appliances, the company has been particularly successful in the kitchen small appliance sector. The company was consecutively named as one of the "Top Ten Kitchen Small Appliance Export Enterprises" by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products in 2022 and 2023. According to a Frost & Sullivan report based on export data in 2023, the company ranks among the top ten enterprises in China's kitchen small appliance industry. In terms of export volume to the United States and Canada in 2023, the company's electric kettles accounted for approximately 21.4% and 32.3% market share in the relevant categories defined by the Chinese General Administration of Customs. In terms of export volume to the United States in 2023, the company's electric whisk and other electric products accounted for approximately 6.7% market share in the relevant categories defined by the Chinese General Administration of Customs.