On December 16, 2021, Qingci Games Inc. (hereinafter referred to as "Qingci Games" or "the company”) issued 85,000,000 common shares globally, at HK$11.20 per share, with a fund-raising scale of HK$ 9.52 billion. Qingci Games became the first and only game company to be listed on the Hong Kong Stock Exchange this year.
Qingci Games is an established mobile game developer and publisher in China, offering mobile games that are designed to provide captivating content as well as distinctive and engaging gameplay experiences to players in mainland China and overseas. As a leader in casual games, especially idle games, and rogue-like RPGs in China, Qingci Games has developed, published and operated several popular games. Its landmark mobile games, such as The Marvelous Snail(最強蝸牛) have recorded significant gross billings and achieved high rankings on the game lists widely recognized in the industry. The strategic investors of Qingci Games include G-bits, Tencent Mobility Limited, Alibaba Group and Bilibili.
As the legal advisor to Qingci Games, JunHe provided continuous and in-depth legal services for the introduction of important investors before the listing, the red chip restructuring and the IPO.
The red chip restructuring involved a few difficult issues for the shareholders' domestic investors. JunHe assisted the issuer in the prelisting financing and introduced important investors in a very short time, such as Tencent, Alibaba and BiliBili. JunHe assisted Qingci Games in the negotiation and finalizing of the transaction documents, participated in the design and the adjustment of the red chip restructuring scheme and the construction of the red chip structure. The team carried out comprehensive legal due diligence investigations, reviewed and modified the prospectus and the application and issuance documents related to the listing, and issued Chinese legal opinions. JunHe’s team assisted the issuer in actively responding to the Hong Kong Securities Regulatory Commission and the Hong Kong Stock Exchange regarding Chinese laws.
During the application process, laws and regulations regarding personal information protection, data security and internet security in China went through a general update, and the exposure draft was continuously updated. The securities regulatory authorities raised many questions in response to the new situations and trends. JunHe assisted the issuer in judging the situation prudently and responded to feedback on the key and difficult regulatory issues in a reasonable, timely and efficient manner. The application was fully recognized by the regulatory authorities thanks to JunHe’s consistent and efficient approach. Their rigorous and steady work style and meticulous and professional service attitude were also highly recognized by the company and the other intermediaries.
The signing lawyers of the project were CHEN, Guiyang and ZHOU, Fang, and the partner in charge of the internal audit was YI, Yisong.