DeHeng Advised Hongfeng on Issuing RMB 122 Million A Shares

2020-12-16

On December 14, 2020, Wenzhou Hongfeng Electrical Alloy Co. Ltd. ("Hongfeng," stock code: 300283) issued targeted placement of additional stocks on ChiNext of Shenzhen Stock Exchange through summary procedures, and raised RMB 122 million.

Hongfeng is a leader in China’s electrical contact materials industry, specialized in the research and development, production and sales of electrical-contact functional composite materials, elements, components and hard alloy products. The money raised will be used to fund the production of 3,000 tons of heat exchangers and composite materials for new-energy vehicles per year, the intelligent manufacturing of high-precision electronic protectors and rare-earth modified composite materials and components, and replenish working capital, which is in line with industrial policies and its own development strategy.

This was the first fundraising move in the capital market by Hongfeng since its listing in 2012. It was also DeHeng’s first case of its kind since ChiNext adopted summary procedures to issue stocks to specific investors.

As the special legal counsel, the DeHeng team, with primary support from partners Li Guangxin and Qi Hui, worked closely and actively with the issuer and other intermediary agencies, and provided professional, high-quality and efficient legal services to help make the issuance happen within the tight schedule required by summary procedures.