Guoen Technology (02768) will be open for public subscription from January 27 to January 30, 2026. The company plans to conduct a global offering of 30 million shares, with the Hong Kong public offering accounting for 10% and the international offering for 90%, plus an additional 15% over-allotment option. The offer price is set between HK$34.00 and HK$42.00 per share. Each board lot consists of 200 shares, and the shares are expected to commence trading on the Stock Exchange on February 4, 2026.
The company is a Chinese supplier focused on new chemical materials and upstream and downstream products of gelatin and collagen. It serves the chemical industry and the health and wellness sector, primarily engaged in the research and development, production, and sales of products for industrial and commercial use. For its major chemical segment, the company's clients include manufacturers from downstream industries (such as automotive, new energy, and home appliances) and supply chain solution providers for these downstream manufacturers. For its major health segment, the company's clients mainly consist of medical and pharmaceutical manufacturers who use its products as raw materials for producing downstream items like supplements and medicines.
Within the major chemical industry, the company has a deep presence in the new chemical materials industrial chain. Its product portfolio covers the upstream segment of the industrial value chain (namely its green petrochemical materials like aromatic olefins, styrene, and polystyrene) and the midstream segment (comprising organic polymer modified materials and organic polymer composite materials). Downstream customers utilize the company's products as raw materials for their own manufacturing and performance optimization. Building on its foundation in organic polymer material modification business, the company has extended upstream into the R&D and production of new green petrochemical materials such as styrene, polystyrene (PS), expandable polystyrene (EPS), and polypropylene (PP). Concurrently, the company continues to deepen its downstream industrial layout, extensively exploring diverse application needs in sectors like electronic appliances, automotive industry, new energy, and energy storage.
According to data from Frost & Sullivan, in 2024, based on sales revenue, the company was the second-largest enterprise in China for organic polymer modified materials and organic polymer composite materials, holding a market share of 2.5%. Furthermore, in 2024, the company was the largest polystyrene producer in China by production capacity.
In the health and wellness industry sector, the company focuses on the natural collagen industry and has vertically extended its industrial chain downstream. Its major subsidiary, Dongbao Biology, boasts a history spanning several decades. Leveraging a vertical integration development strategy from 'collagen' to 'collagen+', it has successfully established a product layout covering collagen peptide/derivative raw materials to end products, gradually evolving into a comprehensive group within the细分领域 (sub-segment) of the large health industry, achieving economies of scale. According to Frost & Sullivan, based on 2024 production volume in China's bone gelatin industry, the company is the second-largest bone gelatin producer by output in the Chinese market and the largest among domestic Chinese brands. Based on 2024 relevant production volume in China's hollow capsule industry, the company is the second-largest hollow capsule producer among domestic Chinese brands.
The company has entered into cornerstone investment agreements, pursuant to which the cornerstone investors have agreed, subject to certain conditions, to subscribe for, or procure their designated entities to subscribe for, a certain number of offer shares at the offer price, amounting to a total of approximately HK$320 million. Assuming an offer price of HK$42.00 (the highest price indicated in the prospectus), the cornerstone investors will subscribe for an aggregate of 7.602 million offer shares. The cornerstone investors include Li Guan Investment Limited ("Li Guan"), SLD International Enterprises Limited ("SLD International"), Cheng'an International Limited ("Cheng'an International"), Shenwan Hongyuan Securities, First Seafront Fund Series SPC, Xinjia Fortune Securities Limited ("Xinjia Fortune"), Luminous Horizon Limited ("Luminous Horizon"), and Fullgoal Hong Kong (a wholly-owned subsidiary of Fullgoal Fund).
The net proceeds to be received by the company are estimated to be approximately HK$1.058 billion, assuming an offer price of HK$38.00 per H share (the midpoint of the indicative price range). Approximately 50.0% will be allocated to expanding the production capacity of the company's new production base in Thailand. Approximately 35.0% will be allocated to expanding the production capacity of the company's new production base in China. Approximately 10.0% will be allocated to the company's investments in Hong Kong, including the establishment of a regional headquarters and upgrades to production facilities. Approximately 5.0% of the net proceeds will be used for working capital and general corporate purposes.
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