Qiyunshan Foods (02797) will issue a stock offering from June 30 to July 6 to sell 25 million H shares globally

According to the Zhitong Finance App, Qi Yunshan Food (02797) will be offered shares from June 30, 2026 to July 6, 2026. The company plans to sell 25 million H shares globally, of which the Hong Kong public sale accounts for 10% and the international sale accounts for 90%. The offering price is HK$5-8 per share. Each lot is 500 H shares. H shares are expected to start trading on the Stock Exchange at 9:00 a.m. (Hong Kong time) on July 9, 2026 (Thursday).

The Group is a fruit snack company in China that mainly sells southern jujube food products. According to Insight Consulting, in 2025, in terms of retail sales, the Group accounted for 29.0% of China's jujube food market, ranking first in the industry. Since 1997, the Group's flagship product, Nanjube Cake, has been certified as a “green food” by the China Green Food Development Center for 30 consecutive years and certified as a “National Geographic Indication Protected Product” in 2018. The group's brand “Qiyunshan” is a well-known southern jujube food brand in China. The Group is positioned as a green food. Using the natural health benefits of jujube, the group satisfies the diverse taste preferences of consumers through research and development work, and is committed to promoting the value of nanjube as a nutritious snack. In 2014, the group established the Jiangxi Southern Jujube Engineering Technology Research Center. The Group's operations cover the entire industrial chain from food resource protection, cultivation, food research and development to manufacturing and sales of jujube. The Group has been recognized as a high-tech enterprise and a national key leading enterprise in agricultural industrialization.

Assuming that the offering price is HK$6.50 per H share (that is the median of the offering price range as described in this prospectus), the Group estimates that after deducting underwriting commissions and other expenses payable by the Group in connection with the global offering, and assuming that the over-allotment rights are not exercised, the Group will obtain approximately HK$130 million in net proceeds from the global offering. The Group intends to use the net proceeds from the global sale to expand the Group's business. Details are set out below: (1) It accounts for approximately 36.3% of the net proceeds from the global sale and will be used to expand the Group's production capacity and storage capacity. (2) Approximately 18.3% of the net proceeds from the global sale will be used to enhance the Group's R&D capabilities. (3) Approximately 13.9% of the net proceeds from the global sale will be used for e-commerce infrastructure development and online promotion expenses. (4) Approximately 27.0% of the net proceeds from global sales will be used to increase the breadth and depth of the Group's offline sales and distribution network in existing and undeveloped markets in China, with the aim of maintaining the steady growth of the existing distribution network and developing emerging distribution channels (such as group buying and snack specialty stores in China). (5) It accounts for 4.5% of the net proceeds from the global sale and will be used to supplement working capital and other general corporate purposes.

During the track record period, the Group's gross profit for fiscal year 2023, fiscal year 2024 and fiscal year 2025 was RMB120 million, RMB 165 million and RMB 161 million respectively. The gross margins for the same year were 48.8%, 48.6% and 51.3% respectively. In fiscal year 2023, fiscal year 2024 and fiscal year 2025, the Group's net profit was RMB23.7 million, RMB53.2 million and RMB48.9 million respectively.