China Graphite Group Co., Ltd. ("China Graphite"), a domestic supplier of graphite core materials in China, officially launched its IPO today, with the stock code 02237.HK. Ed serves as the co-lead manager of China Graphite. The public offering time of China Graphite is from June 30 to July 8, 2022, and it was listed on the main board of the Hong Kong Stock Exchange on July 18. The offering price is HK$0.325-0.375, and the fundraising amount is about HK$150 million.

The company is engaged in the production and sale of flake graphite concentrate and spherical graphite in China. The origin of the company can be traced back to 2006. At that time, the company started the beneficiation and sales of flake graphite concentrate (mainly 94% to 96.8% carbon content) under the name of Yixiang Graphite. New energy processes and sells spherical graphite (mainly with a carbon content of more than 99%).

In the years ended December 31, 2019, 2020 and 2021, the company achieved revenue of 124 million yuan, 169 million yuan and 198 million yuan (RMB, the same below) respectively, and the profits attributable to shareholders were 24.549 million yuan and 36.884 million yuan. yuan and 53.325 million yuan.

Assuming an offer price of HK$0.35 per Hong Kong Offer Share and assuming that the over-allotment option is not exercised, the Company estimates that the Company will receive approximately HK$93 million in net proceeds from the Global Offering. The company intends to use the entire net proceeds from the global offering for the construction of a new concentrator. Of this, approximately 32.4% was used for land acquisition, approximately 31.6% was used for construction; and approximately 36.0% was used for purchase and installation of machinery and equipment.