New Stock Announcement: Shanxi Installation (02520) plans to globally issue approximately 333 million shares and introduce Mingyang Smart Energy as a cornerstone investor.

Shanxi Installation (02520) will be listed from November 10th, 2023 to November 15th, 2023. It plans to globally issue approximately 333 million H shares, with 10% allocated for sale in Hong Kong and 90% for international sale (subject to adjustment based on the exercise of the additional share option). The offering price will not exceed HKD 2.36 per share and is expected to be no lower than HKD 2.1 per share. Trading is expected to begin on November 22nd, 2023, at 9:00 am (Hong Kong time) on the Hong Kong Stock Exchange. It is reported that the company is an engineering services provider based in Taiyuan, Shanxi Province, China. The company engages in specialized industrial engineering, specialized supporting engineering, and other engineering and non-engineering businesses. In the past, the company derived most of its revenue from Shanxi Province. In 2022, the group was the largest specialized industrial engineering contractor in terms of revenue in Shanxi Province, with a market share of 3%. For the fiscal years ended December 31, 2020, 2021, and 2022, as well as the six months ended June 30, 2023, the company's total revenues were approximately RMB 10.149 billion, RMB 13.278 billion, RMB 12.845 billion, and RMB 5.248 billion, respectively. The company's gross profits for the same periods were RMB 1.428 billion, RMB 1.748 billion, RMB 1.842 billion, and RMB 786 million, respectively. Assuming the offering price is HKD 2.23 per share (the mid-point of the indicative offering price range) and the overallotment option is not exercised, the company expects to receive a net amount of HKD 668.3 million from the global offering. Approximately 50% of the net proceeds will be used to fund the company's new energy projects, including cooperation with other private enterprises to invest in and construct privately-owned facilities to generate profits through their operation. Approximately 32% will be used to provide funding to equity investments, to meet the registered capital requirements of the relevant project companies established for the company's existing and new PPP projects. Approximately 10% will be used to fund new energy upstream and downstream manufacturing industry projects. Approximately 8% will be used for working capital and general corporate purposes, and will be utilized within six months after the listing. In addition, the company has entered into a cornerstone investment agreement with Mingyang Intelligent Energy Group Co., Ltd, where the cornerstone investors have agreed, subject to certain conditions, to subscribe for or cause designated entities to subscribe for a certain number of shares to be offered. The subscription price for these shares will be the offering price, with a total amount of HKD 157 million. Assuming the offering price is HKD 2.23 and the overallotment option is not exercised, the total number of shares to be subscribed by the cornerstone investors will be 70.402 million, accounting for approximately 21.1% of the offering shares and approximately 5.3% of the total issued share capital after the completion of the global offering.