Guangdong Chj Industry Receives CSRC Feedback on Hong Kong IPO: Impact of Controlling Shareholder's Pledged Shares and Fund Usage

Deep News11-09

Guangdong Chj Industry Co., Ltd. (002345) recently received feedback from the China Securities Regulatory Commission (CSRC) regarding its overseas listing application. Key points from the regulatory response include:

1. The company must clarify whether the pledged shares held by its controlling shareholder and concerted actors will significantly impact the IPO process.

2. Additional disclosures are required regarding the company's digital operations, including: - Development of websites, mini-programs, apps, and official accounts - Data collection and storage practices for personal information and orders - Information sharing with third parties and corresponding security measures - User data protection plans before and after listing

3. The legal opinion must be supplemented with complete information about all subsidiaries and branches, including any changes, rather than just key subsidiaries.

4. The company needs to disclose details of pending litigation, including: - Current status and potential impact on operations - Whether such cases could materially affect the IPO - Adequacy of existing disclosures

5. The company must confirm compliance with overseas listing prohibitions under Chinese regulations.

6. A detailed breakdown of fundraising plans is required, including: - Estimated capital raise and calculation methodology - Specific fund allocation, particularly whether any will be directed to real estate - Domestic vs. international usage ratios - Compliance with relevant state regulations on overseas investment

All these matters require verification and clear legal opinions from counsel.

Company Background: Headquartered in Shantou, Guangdong, Guangdong Chj Industry specializes in designing, developing, producing, and selling high-end fashion jewelry and women's handbags. Its revenue breakdown shows: - Fashion jewelry: 48.53% - Traditional gold products: 44.63% - Brand licensing and franchise services: 3.00% - Leather goods: 2.99% - Other income: 0.86%

Financial Highlights (Jan-Sept 2025): - Revenue: RMB 6.237 billion (+28.35% YoY) - Net profit: RMB 317 million (+0.33% YoY)

Shareholder Structure: As of September 30, 2025, the company had 35,300 shareholders, with Hong Kong Securities Clearing Company holding 64.54 million shares (down 877,600 shares). Several mutual funds entered or exited the top ten shareholder list during the period.

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