January 4, 2018 – The new year brought a new era for China Futex Holdings Limited (“China Futex”, stock symbol: 08506.HK): it was successfully listed on the GEM of the Hong Kong Stock Exchange assisted by Jingtian & Gongcheng as the issuer’s Chinese legal counsel.
Established in 2004, China Futex is one of the top ten manufacturers of circular knitting machines in China specializing in the research and development, manufacturing and sale of the circular knitting machines. Currently it has three subsidiaries within China and sells its products far as countries along the“Belt and Road “such as India, Bangladesh, Thailand, Korea, Turkey and Egypt. According to the Frost & Sullivan report, with an extensive sales market, the company is the third among all domestic circular knitting machinery manufacturers in terms of sales value of the machines in 2016. The net proceeds from this public offering will be used to improve its research and development capability, boost its upstream production output, to accelerate its growth momentum, expand its overseas customer base, as well as strengthen its customer loyalty and increase its brand awareness etc.
During the IPO, Jingtian & Gongcheng provided China Futex with comprehensive legal service. Considering China Futex is a time-honored company with heavy assets, Jingtian & Gongcheng drafted adequate and systematic legal steps to ensure the company’s regulatory compliance, especially when it comes to the growth strategy and organizational restructuring plans, so as to guarantee that the exercising of China Futex’s rights and interests in the IPO complied with all relevant laws and regulations.
On one hand, being listed on the Secondary Board of the Hong Kong Stock Exchange paved the way for China Futex to enhance research and development, boost growth and expand its sales channels; on the other hand, it set up a great example for other manufacturers seeking capital investment. The Hong Kong Stock Exchange verified the application documents strictly according to the listing rules and regulations and gave them clear relevant instructions. Compared to A-share market, it took less time for them to audit as well. As an important part of listing companies in Hong Kong, other manufacturers will find it a feasible way to finance through the exchange.
