The application of Zhejiang Chengyi Pharmaceutical Co., Ltd. (hereinafter referred to as "Chengyi Pharmaceutical", "Issuer" and "Company") for the initial public offering of no more than 21.3 million ordinary shares (A shares) (hereinafter referred to as "this offering") has been approved by the China Securities Regulatory Commission in ZJXK  No. 157, This issuance is conducted through a combination of offline inquiry and placement with eligible investors (hereinafter referred to as "offline issuance") and online subscription based on market value to social public investors holding non restricted A-share shares in the Shanghai market (hereinafter referred to as "online issuance").
The Issuer and the recommendation institution (lead underwriter) Dongxing Securities Co., Ltd. (hereinafter referred to as "Dongxing Securities" and "recommendation institution (lead underwriter)") have negotiated and determined that the number of shares issued this time is 21.3 million. Before the launch of the call back mechanism, the initial offline issuance quantity was 12.8 million shares, accounting for 60.09% of the total issuance amount; The initial online issuance quantity was 8.5 million shares, accounting for 39.91% of the total issuance quantity. The issuance price was RMB 15.76 per share. According to the call back mechanism announced in the "Announcement on the Initial Public Offering of A-shares by Zhejiang Chengyi Pharmaceutical Co., Ltd." (hereinafter referred to as the "Issuance Announcement"), due to the initial effective online subscription multiple of 8911.31 times, which is higher than 150 times, the issuer and the recommendation institution (lead underwriter) have decided to initiate the call back mechanism and transfer 50% of the issued shares from offline to online. After the call back, the final offline issuance quantity was 2.13 million shares, accounting for 10% of the total issuance amount; The final online issuance quantity was 19.17 million shares, accounting for 90% of the total issuance amount. After the call back mechanism was activated, the final winning rate of online issuance was 0.02530822%.
There have been significant changes in the payment process of this issuance, and investors are kindly requested to pay close attention. The main changes are as follows:
1. Offline investors should pay the new share subscription funds in full and on time before 16:00 on March 7, 2017 (T+2) according to the "Announcement of Preliminary Placement Results and Online Winning Results of Zhejiang Chengyi Pharmaceutical Co., Ltd.'s Initial Public Offering of A-shares" (hereinafter referred to as the "Announcement of Preliminary Placement Results and Online Winning Results of Offline Issuance").
After winning the lottery for online investors to subscribe to new shares, they should fulfill their payment obligations in accordance with the "Announcement of Preliminary Placement Results of Offline Issuance and Online Winning Results" to ensure that their capital account has sufficient new share subscription funds on March 7, 2017 (T+2). The transfer of funds by investors must comply with the relevant regulations of the securities company where the investors are located.
The shares that offline and online investors have waived their subscription will be underwritten by the sponsor (lead underwriter).
2. When the total number of shares subscribed for by offline and online investors is less than 70% of the total amount of this public offering, the recommendation institution (lead underwriter) will suspend this new share issuance and disclose information on the reasons for the suspension and subsequent arrangements.
3. If an offline investor who has not participated in the subscription or obtained the initial allocation fails to pay the subscription amount in full and on time, it will be deemed as a breach of contract and shall be liable for breach of contract. The recommendation institution (lead underwriter) shall report the breach of contract to the China Securities Association for record. When online investors fail to pay in full after winning lottery three times within 12 consecutive months, they are not allowed to participate in new stock subscription within 6 months.
4. Once this announcement is published, it shall be deemed to have been delivered to all online investors who have participated in online subscription and won the lottery, as well as to all distribution objects who have obtained the allocation through offline issuance.
1. Online lottery winning result
According to the Announcement on the Initial Public Offering of A-shares by Zhejiang Chengyi Pharmaceutical Co., Ltd, On the morning of March 6, 2017 (T+1), the issuer Zhejiang Chengyi Pharmaceutical Co., Ltd. and the sponsor (lead underwriter) of this offering Dongxing Securities Co., Ltd. hosted the lottery winning ceremony for the online issuance of A shares of Zhejiang Chengyi Pharmaceutical Co., Ltd. at the Haitang Hall, the conference room on the fourth floor of Zijinshan Hotel, 778 Dongfang Road, Pudong, Shanghai. The lottery ceremony is conducted in accordance with the principles of openness, fairness, and impartiality. The lottery process and results have been notarized by the Shanghai Oriental Notary Office. The winning result is hereby announced as follows:
Any investor who participates in the online issuance and subscription of A-shares of Zhejiang Chengyi Pharmaceutical Co., Ltd. who holds the same number of subscription allotments as the above number will be the winning number. There are a total of 19170 winning numbers, and each winning number can only subscribe to 1000 A-shares of Zhejiang Chengyi Pharmaceutical Co., Ltd.
2. Offline issuance and subscription status and preliminary allocation results
(1) Offline issuance and subscription status
According to the requirements of the Measures for the Administration of Securities Issuance and Underwriting (Order No. 121 of the China Securities Regulatory Commission), the recommendation institution (lead underwriter) has verified and confirmed the qualifications of investors participating in offline subscription. According to the effective subscription results finally received by the electronic offline subscription platform of Shanghai Stock Exchange, the sponsor (lead underwriter) makes the following statistics:
The offline subscription work for this issuance ended on March 3, 2017 (T day). After verification and confirmation, out of the 5192 valid offer placements managed by 3006 offline investors, 19 of the 21 valid offer placements managed by offline investors did not participate in offline subscriptions. The remaining 2987 offline investors managed 5171 valid offer placements and participated in offline subscriptions in accordance with the requirements of the Issuance Announcement.
The specific list of non participating offline subscriptions is as follows:
The above placement arrangements and results are in line with the placement principles announced in the Announcement of Issuance Arrangements and Preliminary Inquiry, of which 113 odd shares are allocated to Deppon's optimized and flexible allocation hybrid Investment fund in accordance with the placement principles in the Announcement of Issuance Arrangements and Preliminary Inquiry. The final allocation status of each distribution object is detailed in the attached table.
3. Contact information of the sponsor (lead underwriter)
If offline investors have any questions about the offline placement results announced in this announcement, please contact the sponsor (lead underwriter) of this issuance. The specific contact information is as follows:
Contact phone numbers: 010-66551360, 010-66551370
Contact person: Capital Markets Department
Issuer: Zhejiang Chengyi Pharmaceutical Co., Ltd
Sponsor (lead underwriter): Dongxing Securities Co., Ltd
March 7, 2017