Press Release

FCIB acted as independent financial advisor of the M&A transaction

FCIB acted as independent financial advisor to Zhejiang Hangmin Co.,Ltd (“Zhejiang Hangmin” or “the company”) on its acquisition of Hangzhou Hangmin Baitai Jewellery Co., Ltd (“Hangmin Baitai” or “the target”) via non-public offering and related-party transaction. The deal was officially closed on Dec 25th, 2018. Consideration of RMB 1.07 billion was paid by non-public-issued shares priced at 9.72RMB per share dedicated to original owners of the target – Zhejiang Hangmin Industrial Group Co., Ltd (“Hangmin Group”) and Global Crown Jewellery & Gold Ornament Ltd. Hangmin Baitai becomes a wholly-owned subsidiary of the company after the transaction. 

Zhejiang Hangmin, China’s textile giant, has been awarded the top ten enterprises in the industry by China Dyeing and Printing Association during recent years. Since its IPO in 2004, Zhejiang Hangmin has been delivering fast-growing performances, with its net profit attributable to shareholders amounting to RMB 0.57 billion in 2017. 

Hangmin Baitai is part of the core assets developed by Hangmin Group. The target has been focusing on the designing, development, production and wholesales of gold accessories ever since its founding. Hangmin Baitai is one of the top enterprises in the industry; its well-established reputation features sophisticated craft and high-quality products. In the recent three years, the yearly output of Hangmin Baitai ranked top 3 in the industry.

The transaction gives rise to a conglomerate that focuses on both wearing and accessories. Beside its robust textile and dyeing segment, Zhejiang Hangmin therefore obtains a strong entryway into the gold ornament and jewellery market, which has stronger barriers to entry and greater prospects. Thus, Zhejiang Hangmin will benefit from vast industry chain consolidation and greater market potentials, by further reinforcing its business, avoiding cyclical risk and prospering both segments.

FCIB, acting as the leading IFA, efficiently coordinated intermediary agencies; successfully assisted in the restructuring planning, full-scope due diligence and information disclosure; as well as obtained all the approvals from the authorities. This fully demonstrates FCIB’s strong execution capability and outstanding communications with regulators, and is highly appreciated by the client and the market.