Huike Environmental Protection (02613) issued shares from December 31 to January 6 and received subscription of up to $10 million from Harvest.

Huige Environmental Protection (02613) will be listed from December 31, 2024 to January 6, 2025. The company plans to globally offer 10 million H shares, with 10% of the shares being offered in Hong Kong and 90% internationally. The offering price is between HK$31.8 and HK$39.8 per share, with 100 shares per board lot. The company expects the H shares to start trading on the Hong Kong Stock Exchange on January 9, 2025 at 9:00 am (Hong Kong time). The company is a provider of China CSSC environmental protection equipment and systems, serving clients worldwide. According to Frost & Sullivan, as of December 31, 2023, based on the total number of completed orders for ship exhaust gas purification systems in 2023 and the cumulative order backlog, the company ranks third among providers in China CSSC and fourth among all ship exhaust gas purification system providers globally. During the historical period, the company achieved strong financial growth. The revenue increased by 90.2% from RMB 1.41 billion in 2021 to RMB 2.67 billion in 2022, and further increased by 90.9% to RMB 5.1 billion in 2023. The net profit increased significantly from RMB 12.8 million in 2021 to RMB 36.8 million in 2022, and further increased to RMB 120.5 million in 2023. The net profit increased by 65.1% from RMB 49.7 million in the six months ended June 30, 2023 to RMB 82.1 million in the six months ended June 30, 2024. The company has entered into cornerstone investment agreements with Harvest International Premium Value (Secondary Market) Fund SPC on behalf of Harvest Oriental SP (Harvest), where the cornerstone investors have agreed to subscribe at the offering price. The cornerstone investors will subscribe for a net amount not exceeding USD 10 million (approximately HKD 77.69 million) in aggregate. The company believes that introducing cornerstone investors in the global offering will help ensure a reasonable scale of substantial underwriting at the start of the marketing period. With the reputation of cornerstone investors, the cornerstone allocation will enhance the company's image and provide confidence in the company's business and prospects in the market. Assuming an offering price of HK$35.8 per share, the company estimates a net proceeds of approximately HK$312 million from the global offering. Approximately 50.0% will be used for research and development, 15.0% for potential acquisitions, 15.0% for leasing production facilities in mainland China or Southeast Asia (specific location to be determined by 2025 after extensive research), 10.0% for establishing new service centers and upgrading existing ones, and 10.0% for working capital and other general corporate purposes.