Zhuhai Zhongfu Obtains Approval for Share Placement of RMB700 Million from CSRC

China’s leading beverage packaging and PET bottling company, Zhuhai Zhongfu Enterprise Co.,Ltd (“Zhuhai Zhongfu”; stock code: SZ000659), has obtained approval from China Securities Regulatory Commission (“CSRC”) to issue no more than 79 million new shares in a private placement. The approval is effective for six months from the announcement date. Zhuhai Zhongfu has appointed Essence Securities as the sponsor for this share placement exercise, and investor roadshows have started in Beijing, Shanghai and Shenzhen.

Zhuhai Zhongfu plans to issue no more than 79 million shares (both upper and lower limits inclusive) at the issue price of no less than RMB 5.63 per share, and the share placement target is limited to maximum 10 designated investors. Completion of this share placement will not result in significant changes towards the shareholding structure, although the interest of the controlling shareholder, Asia Bottles (HK) Company Limited, will decrease from 29% to 26.01% based on the upper-limit estimate of 79 million shares issued.

It is expected that the fundraising size will not exceed RMB 700 million (excluding fees incurred from share issuance), and the net proceeds will be fully committed to the expansion program of the Company’s core businesses, namely the manufacturing of PET bottles, bottle blowing and drink refilling. When new facilities are integrated into its operations, Zhuhai Zhongfu’s profitability, production and marketing capability will be further enhanced. The Company will also capture opportunities arising from the booming beverage packaging industry, as well as major customers’ expansion plans, in China.

Mr. Gary Guernier, Chairman of Zhuhai Zhongfu, said, “We’re delighted to obtain the CSRC approval for the share placement exercise. The fund raising exercise will help us institutionalize our core businesses and expand on our production capacity and product range. It will further enhance our operational scale and R&D capability, hence sharpening our competitive strengths in China’s beverage packaging industry. These measures will collectively improve our profitability and consolidate our leadership position. We have full confidence in the growth momentum of both beverage packaging industry and beverage consumption in China. We will continue to explore opportunities in the future, leading the modernization and internationalization of China’s beverage packaging industry.”