上市捷报丨沙利文助力集海资源集团有限公司成功赴港上市(2489.HK)

Jihai Resources Group Co., Ltd. (Stock Code:2489.HK) on2023year12month22The company successfully logged into the Hong Kong capital market main board on2005A year-old gold exploration, mining and processing company located in Yantai City, Shandong Province, China. Frost & SullivanFrost & Sullivan,Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') provides exclusive industry advisory services for the listing of Hailiu Resources Group Co., Ltd. We hereby extend our warmest congratulations on its successful listing.

Jihai Resources Group Co., Ltd. (hereinafter referred to as 'Jihai Resources') was established on2023year12month22The company successfully went public on the 1st, and the group plans to issue shares5Shares of 100 million, of which90%For international share issuance,10%Issued for Hong Kong shares. The final issue price was HK$10.00 per share.0.55Hong Kong dollar, net amount of proceeds2.17HK$10 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and providing assistance to the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Investment highlights

The company's gold mine is located in Yantai City, Shandong Province, which boasts rich gold resources and a mature gold industry supply chain;

The company has a strong technical team, which helps it achieve high operational efficiency with production costs lower than the industry average;

The company has the capability to develop new mining assets, and its existing mining assets can support its next-stage growth strategy;

The company is committed to safety and environmental management;

The company has an outstanding comprehensive management team.

According to the Frost & Sullivan report, by2022Annual gold production, company:

Ranked third in Shandong Gold Mining Company, with a market share of2.6%.

Overview of the Chinese Gold Market

China's gold demand is in2021The annual increase is about1,127.9tons, relatively2020Year-on-year increase30%The main reasons are as follows: driven by factors such as improved economic environment and consumer sentiment, jewelry demand has shown a self-2020The rebound since the beginning of the year. In addition, investors have placed more emphasis on gold investment, leading to an increase in gold investments such as bars and coins.2022In [year], China's gold demand slightly declined, mainly due to a decrease in social demand leading to a reduction in demand for gold jewelry.

Considering the continuous growth of China's per capita income level, consumption of gold jewelry is expected to increase. Against the backdrop of the Federal Reserve's active interest rate hikes and the tense situation between Russia and Ukraine, the demand for gold as a hedge against global economic uncertainties is increasing day by day. Therefore, gold investment in China is also expected to show an upward trend.

Source: China Gold Association, Frost & Sullivan report

China's gold production

since2007Since the beginning of this year, China has been the world's largest gold producer.2017year7In January, the Ministry of Natural Resources issued the 'Work Plan for the Clearance of Mining Rights within Nature Reserves', stipulating a comprehensive survey and gradual cancellation of existing mining rights in nature reserves, leading to the closure of gold mines in several provinces. In the following years, China's gold production decreased.

Shandong is the largest source of gold mining in China. However, since2021year2month to9In the month, non-coal mines (including gold mines) in Shandong Province were shut down for safety inspections. This had a significant negative impact on the province's gold production. As a result, China's total gold output was2020The year's promise365.3tons were significantly reduced to2021The year's promise329.0tons.

Due to the safety inspection of gold mines in Shandong Province2021year9At the end of the month, gold produced from gold mines in Shandong Province2022The year saw a significant increase. In addition, gold jewelry consumption2022The year saw a strong recovery. As a result, China's gold production2022Year rebound to372.0tons. Driven by factors such as rising gold prices, accelerated automation and mechanization in the gold mining industry, China's gold production is expected to be2027Stable annual growth to about456.7tons2022Year-end2027The annual compound growth rate during the year is about4.2%.

Source: China Gold Association, Frost & Sullivan report

Similarly, due to the safety inspections of gold mines in Shandong Province2021year9At the end of the month, gold produced from gold mines in Shandong Province2022The year witnessed a significant increase to about41.4tons, and it is expected that the final amount will be2027Yandaoyou46.3tons2022Year-end2027The annual compound growth rate for the year is expected to be about2.3%Other major growth drivers are expected to be the growing demand for gold, rising gold prices, and technological progress.

Source: China Gold Association, Frost & Sullivan report

China's gold market drivers

· Increasing demand

The increasing demand for gold will stimulate gold mining companies to intensify their efforts in mining gold mines and expand production scale. With the improvement of people's living standards and the strengthening of purchasing power, consumers' demand for luxury goods such as jewelry has also risen sharply. At the same time, against the backdrop of the Russia-Ukraine conflict, the global economic situation is severe, making the financial attributes of gold increasingly evident. Therefore, the growing demand in various application fields of gold will greatly drive the growth of this industry.

· Increasing gold reserves

The internationalization of the Renminbi is an inevitable result of national economic development, cross-border trade, and investment. As an important reserve and settlement method, gold still occupies a certain proportion in major central banks. Gold reserves are an effective way to hedge against risks in international financial markets. However, China's share of total reserves as gold reserves is below the global average level. Increasing gold reserves is an irresistible trend to meet the needs of Renminbi internationalization.

· Expansion of downstream application fields

Against the backdrop of the continuous development of emerging technologies, gold can be effectively applied in more fields. For example, in the medical field, gold nanoparticles can be used for rapid diagnostic tests, and gold-based drugs can also be used to treat diseases. In the technology sector, gold can be used for touchscreens and advanced flash memory devices. Therefore, the continuous expansion of downstream applications for gold will further drive demand for gold.

· Advanced technology

Catalogue for the Guidance of Industrial Structure Adjustment2019Annual Report) advocates for encouraging in-depth gold exploration and mining1,000(below 500 grams), this policy helps to advance research on deep mining technology and accelerate the resolution of deep mining technical issues, thereby promoting the increase in China's gold production capacity. In addition, the policy also encourages the recovery of gold from tailings and waste rock, thereby improving the utilization rate of gold resources in tailings and driving an increase in the production capacity of the gold mining industry.

Competitive landscape of the gold mining industry in Shandong Province

With the continuous asset restructuring and resource integration of gold enterprises, the gold mining industry in Shandong Province has tended to concentrate.2022In [year], there were approximately30A gold producer engaged in gold mining. Shandong Province2022The annual gold production reached about41.4tons. The top five gold producers calculated based on gold ore production account for about84.7%The rest of gold mining producers account for about15.3%market share.

2022In terms of gold ore production in Shandong Province, the companyAand the companyBThe total market share is78.3%The company relies on1.1Tons of gold production rank third, accounting for2.6%market share.

Data source: China Gold Association, public materials of listed companies, Frost & Sullivan report

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Frost & Sullivan has extensive research experience in the chemical and materials industries, assisting well-known companies in successfully accessing the capital market. Successful listings include: Zhongbao New Materials (2439.HK), Shengneng Group2459.HK), Jinli Yongci (6680.HK),Avia Avian（IDX: AVIA), Global New Materials6616.HK), Dafeng Equipment2153.HK), Yihai International8659.HK),GHW（9933.HK), Sanhe Refining0301.HK), Xingyu Holdings2346.HK), Xinghe Holdings1891.HK), Xuyang Group1907.HK), Dragon Resources1712.HK), Shandong Gold (1787.HK), Henan Jinma6885.HK), Xingye New Materials8073.HK), Dongguang Chemical Industry1702.HK), Zhongqi Group1932.HK), Xinbang Holdings1571.HK), Meigu Technology8349.HK), Huajin International2738.HK), Filtre glass6865.HK), Dinos (1452.HK), Caike Chemical1986.HK), Chang'an Renheng8139.HK), Sansida1337.TWSE), Borun IndustryBORN.NYSE), Kangpeng ChemistryCPC.NYSE), Gushan GroupGU.NYSE), Tianhe Chemical Industry1619.HK), Yihua Holdings2121.HK), Sijia Group1863.HK) etc.