Another company has embarked on the path of a dual listing on the National Equities Exchange and Quotations (NEEQ) and the Hong Kong stock exchange.
BAOGAI (NEEQ: 874551.NQ, HKEX: 08090.HK) is set to officially list on the Hong Kong Growth Enterprise Market (GEM) on July 8, establishing a notable cross-border listing case for a NEEQ enterprise in 2026.
Traditionally, most NEEQ companies seeking a Hong Kong listing have targeted the Main Board of the Hong Kong Exchanges and Clearing Limited. A smaller number aiming for the GEM have typically chosen to delist from the NEEQ first. BAOGAI is charting a distinct new path by retaining its NEEQ listing status while proceeding directly with its GEM listing. Upon completion, it will become the second company to list on the HKEX GEM in 2026, following BBSB INTL (HKEX: 08610.HK).
According to the company's announced allocation results, the global offering consists of 14.47 million H shares, with 10% allocated for public subscription and 90% for placing. The offer price is set at HK$6.22 per share, with net proceeds from the global offering expected to be approximately HK$69.4 million.
Allocation of Proceeds
The raised capital will be allocated across five key areas: 30% will be invested in a production line for continuous carbon fiber resin matrix composite products, targeting the high-end new materials sector; 25% will be used for automating and upgrading existing production lines; 15% will be allocated to increase research and development investment; 20.1% will be directed towards expanding global sales and market channels; and the remaining 9.9% will serve as supplementary working capital for daily operations.
Company Background and Market Position
The prospectus reveals that BAOGAI, founded in 2009, has become a specialized manufacturer in China's composite material trench cover industry, primarily producing composite trench covers for engineering and infrastructure needs. According to data from Frost & Sullivan, the company ranked first in China's cable trench cover and composite cable trench cover market by share in 2025, and third in the overall trench cover industry by market share.
The company manufactures and supplies a full range of high-performance composite trench cover products, including cable trench covers, drainage trench covers, and manhole covers. These composite products are customizable in specification and configuration. The primary composite material used is a resin matrix composite reinforced with glass fibers. The product portfolio caters to non-standard sizes, special functions, and branded customer logos, meeting customized demands. The company also incorporates IoT technology across all its products, actively promoting the intelligent upgrade of its smart manhole cover management system.
Financial Performance Overview
In terms of financial performance from 2023 to 2025, the company reported revenues of approximately RMB 137 million, RMB 131 million, and RMB 144 million, respectively. Over the same period, net profit attributable to owners of the parent company was RMB 25.222 million, RMB 21.624 million, and RMB 24.054 million, respectively. The comprehensive gross profit margins were 38.2%, 37.5%, and 38.2%, respectively.
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