Company News - 16 October 2015

AMTD Group successfully prices Lanzhou Zhuangyuan Pasture Co. Ltd’s HK$186mm initial public offering on the main board of the Hong Kong Stock Exchange

On 15 October, Lanzhou Zhuangyuan Pasture Co. Ltd (Zhuangyuan Pasture), the leading dairy company in Gansu and Qinghai was successfully listed on the Main Board of the Hong Kong Stock Exchange (stock code 1533.HK). AMTD Asset Management Limited (“AMTD”) acted as the Joint Bookrunner in the IPO.

Zhuangyuan Pasture’s IPO included 10% Hong Kong Public Offering and 90% International Offering tranches with an issue price of HK$5.30 and raising HK$186mm in the proceeds. The use of proceeds will be for building community milk booths, financing a portion of the funds required to import dairy cows from Australia or New Zealand, promoting the brands, as well as the construction of a new technology centre to conduct product development activities.

Zhuangyuan Pasture is a leading dairy company in Gansu and Qinghai where its operations and sales are primarily located and it operates a vertically integrated business model. It ranked first with a market share of 19.0% in the liquid milk product market in terms of retail sales value in the Gansu and Qinghai regional market in 2014, according to the Frost & Sullivan Report. Its vertically integrated business model covers the critical stages of the dairy industry value chain, from dairy farming, to manufacturing, and then to marketing and sales of dairy products. Zhuangyuan Pasture introduced to the market its Cold Chain Liquid Milk Products (i.e., pasteurised milk and yogurt) since the commencement of its production of dairy products in 2000, and it made a strategic decision in 2012 to enhance its efforts in the development and sales of such products, which it believes will represent a new consumption trend in the near future. While focusing on the Cold Chain Liquid Milk Product market, Zhuangyuan Pasture also leveraged on its strong brand recognition in the regional market to continue to strengthen the sales of its popular UHT milk and modified milk products during the Track Record Period, thereby maintaining its diversified product offerings.

AMTD is a Hong Kong-based, China-focused integrated non-bank financial platform dedicated to combining and providing access to capital and investment opportunities. Its global presence allows AMTD Group to provide its clients with professional capital markets & advisory, asset management, and insurance brokerage solutions.

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