New Stock News | Hotlink Group Submits Second Application to Hong Kong Stock Exchange, China's Fourth Largest Steel Industry Service Provider and Trader

According to the Hong Kong Stock Exchange's disclosure on August 11, Hangzhou Relian Group Co., Ltd. (referred to as Relian Group) has submitted a listing application to the Hong Kong Stock Exchange's main board, with CICC as its exclusive sponsor. The company previously submitted a listing application to the Hong Kong Stock Exchange on February 9, 2026. Company Profile As disclosed in the prospectus, Relian Group is a commodity industry service provider and trader based in China, procuring and selling more than 294 types of physical goods, including ferrous metals and raw materials, chemicals, non-ferrous metals, and other categories. The company primarily procures and distributes the following bulk commodities: Ferrous metals and raw materials: A comprehensive range that nearly covers the entire industrial chain from upstream raw materials to downstream finished ferrous metal products, including iron ore, coal, hot-rolled coils, rebar, special steel, and stainless steel products. Chemicals: Various categories of chemicals, including olefins, aromatics, polyester, rubber, pulp, and liquefied petroleum gas. Specifically, in view of the opportunities brought about by the global energy transition, the company has expanded its commodity portfolio to include bulk commodities such as lithium carbonate and industrial silicon, which are new energy materials. Non-ferrous metals: Various non-ferrous metals, mainly including copper, aluminum, zinc, and nickel. The company provides bulk commodities based on the customers' delivery time, quality standards, and specifications, designing flexible pricing arrangements in line with customers' operational needs. The company's transactions are typically coordinated with end-to-end supply chain services and can be complemented with customized consulting services to help clients enhance operational efficiency and management levels. In addition to serving customers, the company continuously expands its value chain layout through strategic investments and collaborations, deepening upstream supply reach and strengthening downstream coverage, seizing trading opportunities and unleashing growth potential across different industry cycles. The company has established a global business footprint. As of the latest feasible date (August 2, 2026), the company has subsidiaries and offices in 17 countries and regions and engaged in trade activities in over 80 countries and regions during the track record period, facilitating large-scale, sustainable, and efficient trade flows. With this extensive layout, the company can seize diverse opportunities across different regions, commodity categories, and economic cycles, enhancing supply security capabilities. According to Frost & Sullivan, the company is the fifth-largest commodity industry service provider and trader in China (by trade volume and revenue in 2025); it is also the fourth-largest provider and trader of steel products in China (by trade volume and revenue in 2025) and the second-largest exporter of steel products (by trade volume); additionally, the company ranks as the second-largest provider and trader of iron ore in China (by trade volume and revenue in 2025). Financial Information Revenue For the fiscal years of 2023, 2024, 2025, and the five months ending May 31, 2026, the company achieved revenues of approximately 252.13 billion yuan, 270.63 billion yuan, 270.48 billion yuan, and 110.49 billion yuan, respectively. Gross Profit For the fiscal years of 2023, 2024, 2025, and the five months ending May 31, 2026, the company recorded gross profits of approximately 2.18 billion yuan, 1.90 billion yuan, 1.72 billion yuan, and 2.13 billion yuan, respectively. Annual/Period Profit For the fiscal years of 2023, 2024, 2025, and the five months ending May 31, 2026, the company reported annual/period profits of approximately 1.03 billion yuan, 1.43 billion yuan, 1.43 billion yuan, and 0.55 billion yuan, respectively. Industry Overview Bulk commodities refer to goods that can enter the circulation sector but are not in the retail phase. They have commodity properties and are used for large-scale sales for industrial and agricultural production and consumption, mainly including ferrous metals and raw materials, chemicals, non-ferrous metals, and other categories. The prices and supply status of bulk commodities serve as a "barometer" for observing the global economy, as well as being core variables affecting the economic costs and security of various countries. Steel is one of the main categories of bulk commodities. With the upgrade of manufacturing to higher-end products, the renewal and transformation of traditional industry equipment, and the demand growth in emerging fields such as electric vehicles and wind power photovoltaics, Chinas steel production is expected to continue to grow in the future. From 2021 to 2025, driven by the rebound in demand due to global economic recovery and influenced by fluctuations in steel prices, Chinas steel export volume exhibited a trend of initial growth followed by stability, while export value moved in tandem with steel prices, first rising and then falling. Looking ahead, due to slowing global demand, adjustments in trade policies, and restructuring of the industrial sector, export volume is expected to decline in the short term and then maintain low-speed growth, while with prices stabilizing and demand recovering, export value is projected to show moderate growth. Iron ore and its concentrates are among the main raw materials for steel production. Due to macroeconomic fluctuations affecting downstream industries such as real estate and construction, Chinas imports of iron ore and concentrates decreased from 2021 to 2022. The transformation and upgrading of the manufacturing industry have driven the continued growth of Chinas imports of iron ore and concentrates. Crude oil is one of the main products in the bulk commodity market. Due to geopolitical conflicts and external economic instability, Chinas crude oil imports decreased from 2021 to 2022. Crude oil supports important domestic industries, such as engineering plastics, chemical fibers, and fertilizers through deep processing, and the ongoing development of these downstream industries is a key factor driving the increase in Chinas crude oil import volume. Due to cooling demand in downstream industries such as construction and reductions in overseas supply, Chinas rubber import volume has shown slight fluctuations from 2021 to 2025. Looking ahead, the development of the electric vehicle industry is expected to drive demand for high-performance tires, and Chinas rubber import volume is likely to show a continuous upward trend. Due to high volatility in bulk commodity prices, along with the overlapping effects of geopolitical factors, digital transformation, service model iterations, and other reasons, the commodity industry service and trading sector in Asia and China faces a blend of opportunities and challenges, with the market size showing relatively stable growth. In the Asian market, trading volume increased from 2.63 billion tons in 2021 to 2.77 billion tons in 2025, with a compound annual growth rate of 1.3% during this period. Board of Directors Information The company's board of directors consists of nine members, including one executive director, five non-executive directors, and three independent non-executive directors. Shareholding Structure The company's controlling shareholder, Hangshi Group, together with Zhejiang Lianyu (and its concerted persons), holds a total of shares in the company. Specifically, Hangshi Group holds 51% of the shares directly, under the control of the Hangzhou State-owned Assets Supervision and Administration Commission. Zhejiang Lianyu directly holds 44.7% of the shares, while Tianjin Jingyu and Xinjie Haisheng each hold approximately 2.15% of the shares. Intermediary Team Exclusive Sponsor: China International Capital Corporation Hong Kong Securities Limited; Company's legal advisors on Hong Kong and US law: Foran & Lee Solicitors (Hong Kong) Limited Liability Partnership; on Chinese law: Tongshang Law Firm; on international sanctions law and US Foreign Investment Regulations: Hogan Lovells Cadwalader International LLP; on Singapore law: Drew & Napier LLC; on Hong Kong legislation: Chen & Li Law Firm; Legal advisors for the exclusive sponsor: on Hong Kong and US law: HWM Legal Limited Liability Partnership; on Chinese law: Tongli Law Firm; Auditors and reporting accountants: Ernst & Young Industry consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch; Compliance advisor: Hongri Capital Limited.