Press Release

FCIB Acts as the Sole Sponsor and Lead Underwriter for Hongda Xingye Co., Ltd.’s offering of RMB 2.427 billion of Convertible Bonds

First Capital Investment Banking Co., Ltd (“FCIB”) acts as the sole sponsor and lead underwriter for Hongda Xingye Co., Ltd. (the “Issuer” or “Company”)’s offering of RMB 2.427 billion of Convertible Bonds (the “Bonds”) and successfully finished the offering on December 20, 2019. The online subscription rate is 0.0303%, and offline 0.0303%.

The Company is a domestically known listed company in chemical industry, with market capitalization above RMB 10 billion. The Company is one of the largest manufacturers in PVC and caustic soda sector The net proceeds of the issue of the Bonds will be used to fund its investment in capacity expansion of PVC by 300 thousand tons per annum, and also general corporate purposes. The proceeds will further strengthen the Company’s financial position and industry status, support its growth potential.

This offering is one of the largest Convertible Bonds private enterprises offered on A-share market this year. It is also the largest public offering for which FCIB has acted as exclusive sponsor and lead underwriter, which fully demonstrated our ability to carry out large scale follow-on financing projects. The successful offering also demonstrates FCIB’s high-standard execution ability, deep understanding of the market and efficient communication with the regulation, which is recognized by clients and the market.