On October 30, 2020, Chaozhou Three-Circle Group Co., Ltd. (stock code: 300408) ("Three-Circle Group") announced the completion of stock issuance to a specific target ("Project"). Three-Circle Group issued 79,033,430 shares in this offering, at the issuance price of RMB27.52 per share, corresponding to 120.81% of the minimum issuance price. The total amount raised was RMB 5.8746 billion, corresponding to 270% of the total proceeds of this offering. The funds raised from this offering were mainly invested in a technical innovation project for expanding the production of high-quality multi-layer chip ceramic capacitors for 5G communications as well as a project for the industrialization of ceramic chippers for semiconductor chip packaging. This was of great strategic significance to Three-Circle Group, further enhancing its core competitiveness and profitability.
Founded in 1970 and listed on the Growth Enterprise Market of the Shenzhen Stock Exchange in 2014, Three-Circle Group is a comprehensive enterprise dedicated to the research and development, and production and sales of electronic basic materials, electronic components, communication components and other products. Its products cover optical communications, electronics, electrotechnics, machinery, energy conservation and environmental protection, new energy and fashion. The company is also involved in the production and sales of fiber optic connectors, ceramic inserts for alumina substrates and ceramic substrates for resistors, all of which rank highly in their field. It has been appraised as a champion in the national high-tech enterprise arena and a leading light in China's manufacturing industry. It has ranked in the top 10 of China's top 100 electronic components companies for many years.
Since 2010, JunHe has successively provided legal services to Three-Circle Group for A-share IPOs, outbound investments, equity incentives and other projects, and has been acting as its perennial legal counsel since its listing. In this project, JunHe continued to be the issuer lawyer for Three-Circle Group. With the advantage of providing continuous services for the company for 10 consecutive years and relying on close cooperation with Three-Circle Group and other intermediary agencies, JunHe’s team completed several projects for the company such as the issuance of the scheme argumentation, legal due diligence, holding the third meeting, drafting legal documents and preparing declaration materials. Their diligent work ensured that the project was reported as scheduled within two months after the new regulations on refinancing by CSRC were issued.
During the examination and approval period of the project coincided with the formal release of the relevant rules and regulations of The Growth Enterprise Market (GEM) reform and pilot registration system by CSRC in June 2020. JunHe’s team re-prepared a complete set of application materials in accordance with the requirements of the new registration system of GEM, and actively assisted and cooperated with Three-Circle Group and other intermediary agencies to complete the translation of the full set of application materials for the project in time within the transitional period required by the CSRC. JuHe’s team further assisted Three-Circle Group to obtain approval from the Shenzhen Stock Exchange and CSRC's approval for registration.
The project was officially launched in February 2020. This was when the COVID-19 epidemic was raging in mainland China. The entire country was faced with severe and unforeseen obstacles due to domestic epidemic prevention and control. Under these extreme measures, JunHe’s team worked hard to overcome many difficulties and obstacles, and used a variety of online and offline verification methods to quickly and efficiently complete the on-site due diligence work of the project, and ultimately achieved a positive outcome. JunHe won the unanimous affirmation and trust of Three-Circle Group and the other intermediary agencies with its consistently rigorous and efficient work practice. JunHe’s meticulous attitude and professional and high-level service quality were also highly appreciated.