Haina Intelligent Equipment International Holdings Limited announces its subscription results

Recorded approximately 167 times of over-subscription for its public offer

HONG KONG, June 2, 2020 /PRNewswire/ -- Haina Intelligent Equipment International Holdings Limited ("Haina Intelligent Equipment", together with its subsidiaries, the "Group"; stock code: 1645), a manufacturer engaging in the design and production of automated machines for manufacturing disposable hygiene products, including baby diapers, adult diapers and lady sanitary napkins in the PRC, announced the subscription results for its shares (the "Shares") under the public offer (the "Public Offer") and placing (the "Placing", collectively, the "Share Offer"). The Shares under the Public Offer have been over-subscribed by approximately 167.29 times. The offer price per Share has been set at HK$1.38 per Share. Dealings in the Shares on the Main Board of The Stock Exchange of Hong Kong Limited ("SEHK") is expected to commence on 3 June 2020 (Wednesday).

Due to the over-subscription in the Public Offer, the re-allocation procedures have been applied. 46,400,000 Offer Shares initially offered under the Placing have been reallocated to the Public Offer. After the reallocation, the final number of Offer Shares allocated to the Public Offer is 58,000,000 Offer Shares, representing 50% of the total number of Offer Shares available under the Share Offer. Based on the final Offer Price of HK$1.38 per Offer Share, the net proceeds from the Share Offer to be received by the Company, after deducting the underwriting fees and commissions and other estimated expenses payable by the Group in connection with the Share Offer, are estimated to be approximately HK$121.6 million.

Haina Intelligent Equipment intends to use these net proceeds for the following purposes: 1) approximately 21.6% will be used for setting up a new research and development centre in Jinjiang, the PRC; 2) approximately 20.6% will be used for strengthening its research and development capabilities, in particular, developing a new product and increasing the efficiency of its existing products such as production speed; 3) approximately 15.0% will be used for increasing its production capacity; 4) approximately 38.9% will be used for increasing the competitiveness of its products through acquisitions; and 5) approximately 3.9% will be used for its working capital and general corporate purposes.

VBG Capital Limited is the Sole Sponsor. Soochow Securities International Brokerage Limited, VBG Capital Limited and Wealth Link Securities Limited are the Joint Global Coordinators and the Joint Bookrunners. BOA MS Capital Limited, DL Securities (HK) Limited, Soochow Securities International Brokerage Limited, TradeMaster Securities (Hong Kong) Limited, VBG Capital Limited, Wealth Link Securities Limited and Zinvest Global Limited are the Joint Lead Managers. CM Securities (Hongkong) Company Limited and Red Eagle Securities Limited are the Co-lead Managers.

Mr. Hong Yiyuan, Chairman, Chief Executive Officer and Executive Director of Haina Intelligent Equipment International Holdings Limited, said, "The growing awareness of personal hygiene as a result of the COVID-19 pandemic may further drive the consumption of disposable hygiene products in the PRC, and expedite the upgrade and replacement process of disposable hygiene product machinery by downstream disposable hygiene product manufacturers in the next few years. Listing on the Main Board of the SEHK enables the Group to further solidify its competitive strengths, and to seize opportunities of industry development."

About the Group

Haina Intelligent Equipment is a manufacturer engaging in the design and production of automated machines for manufacturing disposable hygiene products, including baby diapers, adult diapers and lady sanitary napkins in the PRC. According to the Industry Report, the Group ranked the third in the disposal hygiene product machinery industry in the PRC in terms of revenue with a market share of approximately 4.0% in 2019.

As at 10 May 2020, the Group operated 16 and six production lines at its Jinjiang Production Base and Hangzhou Production Base, respectively. For the four years ended 31 December 2019, the Group's total revenue amounted to approximately RMB113.0 million, RMB261.0 million, RMB337.2 million and RMB378.0 million, respectively.

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