China Silver Group Announces Details of HKEx Main Board Listing
NOT FOR PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES
This press release is not, and is not intended to be, an offer to sell or the solicitation of an offer to buy any securities of China Silver Group Limited in the United States or any other jurisdiction. The shares of China Silver Group Limited have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws of the United States, and may not be offered or sold, pledged or transferred within the United States (as defined in the Regulation S under the U.S. Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from China Silver Group Limited. Such prospectus will contain detailed information about China Silver Group Limited and its management and financial statements. China Silver Group Limited does not intend to register any portion of the offering in the United States or to conduct a public offering of securities in the United States. No copy of this press release has been or should be distributed or sent, directly or indirectly, to the United States, its territories or possessions.
This press release contains forward-looking statements regarding future events. Such forward-looking statements are not guarantees of future performance of China Silver Group Limited and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements.
For Immediate Release
(Stock Code: 815)
China Silver Group Announces Details of HKEx Main Board Listing
Global Offering of 158,840,000 Shares
Priced between HK$1.18 and HK$1.68 per share
HONG KONG, 13 December 2012 — China’s leading silver producer, China Silver Group Limited (“China Silver Group” or “the Group”), today announced details of its proposed listing on the Main Board (“Main Board”) of The Stock Exchange of Hong Kong Limited (“HKEx”).
China Silver Group will offer a total of 158,840,000 shares under the Global Offering, 90% of which are pursuant to the International Offering, with the remaining 10% in the Hong Kong Public Offering. The Group will grant an over-allotment option to the Sole Global Coordinator, which will require the Group to allot and issue up to an aggregate of 23,826,000 additional shares, representing 15% of the initial size of the Global Offering.
The offer price will range between HK$1.18 and HK$1.68 per share. Based on the mid-point indicative offer price of HK$1.43, the Company’s total Global Offering amount would be about HK$227.1million, including 3% existing shares. The net proceeds from the Global Offering would amount to approximately HK$134.4 million after deducting underwriting commissions and other estimated expenses payable by the Group in relation to the Global Offering, excluding the sell shares by existing shareholders.
CCB International Capital Limited (“CCBI”) is the Sole Sponsor and Sole Global Coordinator, with CCBI, UOB Kay Hian (Hong Kong) Limited and Oriental Patron Securities Limited being the Joint Bookrunners and Joint Lead Managers of the listing.
The Hong Kong Public Offering will open at 9:00 a.m. on Friday, 14 December 2012 and close at 12:00 noon on Wednesday, 19 December 2012. The allotment results will be announced on Thursday, 27 December 2012, with trading expected to commence on Friday, 28 December 2012 under the stock code 815. Shares will be traded in board lots of 2,000 shares.
Proposed Use of Net Proceeds
The Group will use the net proceeds from the Global Offering to expand its production capacity, which includes constructing new production facilities, and purchasing additional production machinery and equipment.
Leading silver producer in China
China Silver Group has commenced production of silver ingots in 2002 and has since established itself as the leading silver producer in China. The Group deploys a comprehensive environmentally-friendly production process to refine silver and other metal by-products, which have commercial value, from high-content ore powder, smelting slag and low-content ore powder, to maximize economic value, and then process kiln slag into saleable concrete for construction use.
Driven by robust growth in China’s silver market, the Group’s revenue soared from RMB289.7 million for the year ended 31 December 2009 to RMB984.2 million for the year ended 31 December 2011, representing a CAGR of 84.3%. The Group’s designated annual production capacity of silver ingots reached 250 tonnes in 2009.
According to the report on the global and China silver market and industry prepared by the independent research and consulting company, CRU International Ltd. (“CRU”), the Group was ranked among the top 10 largest silver producer in China in terms of annual production volume in 2011.
Fully recover and refine non-ferrous metals to maximize economic value and minimize pollution
The Group’s production process adopts a circular economy production model which achieves comprehensive utilization of resources that are recommended by the central and local governments. This enables the Group to
fully utilize all useful resources with no solid wastes generated during the production processes. This can maximize the efficient utilization of resources, reduce environmental pollution, as well as reduce the cost of production and improve profitability. The Group is one of the first batch of companies to be certified as a “Circular Economy Exemplar Enterprise” by the Jiangxi Development and Reform Commission, and was awarded RMB10 million by the Development and Reform Commission to further develop and enhance the application of the circular economy production model, reflecting the government’s recognition of the Group’s advanced production model.
Advanced production technology and techniques
Through its continuous efforts to enhance production technology and research and development, all the silver ingots produced by the Group have a purity grade of not less than 99.995%, exceeding the Shanghai White Platinum & Silver Exchange standard and the London Bullion Market Association (“LBMA”) International Silver Standard. The Group is able to produce silver ingots with a purity grade of 99.999%, currently the world’s highest standard in silver production. Internationally, the Group’s silver ingot under the “Longtianyong” brand was admitted to the silver list of the LBMA Good Delivery List, which represents the global standard for quality of gold and silver bars. According to CRU, the Group is the only non-state-owned or –controlled entity among the 17th Chinese enterprises in the list. Domestically, the Group’s “Longtianyong’ branded silver ingot has been ranked by the Shanghai White Platinum & Silver Exchange as one of the 20 most popular silver brands since 2005. In addition, the Group has obtained GB/T 19001-2008/ISO 9001:2008 certification for its quality management system for the production of silver, lead and zinc oxide series products. The Group’s products allow it to meet customers’ demand for silver ingots with reliable quality, and further strengthen the Group’s competitive position in China’s silver market.
Established strong and diversified customer base
Over years of operations, the Group has built a strong market reputation and won wide-spread credibility among customers. The Group has established a strong and diversified customer base consisting of 20 to 30 major Chinese downstream manufacturers or metal trading companies, many of which are among the largest or leading enterprises in the end-user markets involving all aspects of applications and uses of silver products in China, especially in electrical and electronic applications, jewelry adornment, silverware and investment. Major customers include state-owned China Minmetals Nonferrous Metals Co., Ltd, China National Nonferrous Metals Import & Export Jiangxi Corporation Limited and Guilin Coninst Electrical & Electronic Material Co., Ltd. The latter is a leading enterprise in the electrical contact industry in China and wholly-owned by China National Machinery Industry Corporation, a large state-owned machinery manufacturer in China. The customer base is diversified geographically and located across China, including Beijing City, Hubei Province, Jiangxi Province, Guangxi Autonomous Region, Shanghai City and Zhejiang Province.
Experienced management team with significant industry expertise
The entire senior management team is university or tertiary educated or above and has experience in the relevant fields of the metal industry. The Group’s experienced and committed management team is able to develop strategies quickly in response to market changes, identify and seize market opportunities, manage risks well, implement production plans and increase the Group’s overall profit.
Mr. Chen Wantian, Chairman and Chief Executive Officer of China Silver Group, said, “We are pleased that China Silver Group will tap into the international capital markets through our listing on the Hong Kong Stock Exchange, marking a significant milestone in the Group’s history. Riding on the growing demand for silver in China’s end-user market and the great opportunity opened up by this listing, we will expand our production capacity, enhance our research and development capabilities, strengthen our efforts in environmental protection and explore investment opportunities in the upstream ore supply. This will further strengthen and enhance our market position, tapping further growth in the silver industry, to help us become a leading global integrated silver company.”
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About China Silver Group Limited
China Silver Group, a leading silver producer in China, is engaged in the refining of silver from high-content ore powder, smelting slag and low-content ore powder. The Group was ranked among the top ten largest silver producers in China in terms of annual production volume in 2011. Located in the city of Ji’an in Jiangxi Province, the Group deploys a comprehensive production process, making it one of the few silver manufacturers in China capable of producing silver ingots with a purity grade of 99.999%, currently the world’s highest standard in silver production. The Group’s principal product is the well-recognized “Longtianyong” branded silver ingots and boasting purity grade of not less than 99.995%, exceeding the China Silver Standard and the LBMA International Silver Standard. Meanwhile, the Group refines other commercially valuable metal by-products, including lead ingots, bismuth ingots and antimony ingots, and also processes kiln slag into saleable concrete for construction use.
The Group is currently the only non-state-owned or -controlled entity among the 17 Chinese enterprises whose products are accepted by the LBMA Good Delivery List. Domestically, the Group’s “Longtianyong” branded silver ingots have been ranked by the Shanghai White Platinum & Silver Exchange as one of 20 most popular silver brands for eight consecutive years since 2005.
For further enquiries, please contact Hill+Knowlton Strategies Asia.
Tel: (852) 2894 6378 / 9700 0178
Tel: (852) 2894 6372 / 9858 3718
China Silver Group Limited
No. of Offer Shares in the Global Offering : 158,840,000 shares
(Subject to the over-allotment option)
No. of International Offer Shares : 142,956,000 shares
(Subject to adjustment and the over-allotment option)
No. of Hong Kong Offer Shares : 15,884,000 shares
(Subject to adjustment)
Offer Price Range : HK$1.18 to 1.68 per share
: HK$1,041 million to 1,482 million
(Assuming the over-allotment option is not exercised)
Dealing of Shares Expected to
: 28 December 2012 (Friday)
Stock Code : 815
Board Lot : 2,000 shares
Where to collect the application forms:
For the Hong Kong Public Offer, white application forms and prospectuses can be obtained from Hong Kong
Underwriters, namely CCB International Capital Limited, UOB Kay Hian (Hong Kong) Limited and Oriental Patron
Securities Limited and designated branches of the Hongkong and Shanghai Banking Corporation Limited, China
Construction Bank (Asia) Corporation Limited and Wing Lung Bank Limited. Applicants may also submit
electronic applications under the White Form eIPO service through the designated website www.eipo.com.hk.
Yellow application forms can be obtained from the Hong Kong Securities Clearing Company Limited or from the