New Hope Dairy Co., Ltd (“New Hope Dairy”, or “Company”, stock code: 002946.SZ) was listed on SME Board of Shenzhen Stock Exchange on January 25, 2019. A total of 85 million shares were offered in the deal, accounting for 10% of the total enlarged equity. The offering price was RMB5.45/share, or 22.96x 2017 P/E, and the total proceeds reached RMB465 million. CICC acted as Sole Sponsor and Lead Underwriter in the transaction.

The deal has set a number of records: The largest A-share IPO in the dairy industry with the highest revenue since 2010; The largest A-share IPO in the dairy industry since 2010 (in terms of net proceeds); The A-share IPO by a consumer business with the highest revenue in Sichuan and Chongqing since 2014.

Established in July 2006, New Hope Dairy mainly develops, produces, and sells dairy products and drinks. With “fresh” as its brand idea, the Company focuses on low-temperature dairy product development and broadens its market presence by carrying out a dominant region layout strategy with peripheral expansion based on key region footprints. As a leading regional dairy company, New Hope Dairy follows a product strategy featuring low temperature, freshness and high quality. The Company taps the low-temperature dairy market mainly by its low-temperature milk and yogurt products, and continuously increases the share of low-temperature dairy products in its total sales. This echoes the future direction of the dairy industry and the trend of consumption upgrade. As of June 30, 2018, New Hope Dairy recorded total assets of RMB4.57 Bn, with net assets reaching RMB1.40 Bn. The Company’s revenue reached RMB4.053 Bn in 2016, RMB4.422 Bn in 2017 and RMB2.388 Bn in 1H2018, and realized net profits of RMB146 MM, RMB216 MM and RMB103 MM respectively, delivering solid financial performance.

CICC provided quality and comprehensive investment banking services throughout the client’s development in past 5 years. Since 2014, CICC has fully leveraged its strengths in domestic and overseas platforms to offer all-round and high-quality comprehensive investment banking services. In this partnership, CICC kept up with changes in the market and policy environment, protected the Company’s fundamental interests through constant and quality investment banking services, and provided advise and safeguard measures for the Company’s business development and capital operation.

CICC is a people-oriented investment bank which has Chinese roots and international reach, and serves its country with integrity. As a top-class investment bank in the world, CICC is committed to providing high-quality value-added financial services for clients. Backed by extensive capital market experience and seamless service capabilities across domestic and overseas markets, CICC will continue to provide its clients with first-class financial services and assist them to fulfill their strategic goals.