Announcement on the Initial Public Offering of Shares and Listing on the ChiNext Board
Sponsor (Lead Underwriter): Dongfang Citigroup Securities Co., Ltd.
Special Reminder
Jiangsu Tianchang Composite Materials Co., Ltd. (hereinafter referred to as "Tianchang Co.," "the issuer," or "the company") is organizing the initial public offering of shares and listing on the ChiNext Board in accordance with relevant regulations including the "Measures for the Administration of Securities Issuance and Underwriting" (CSRC Order [No. 135]), "Measures for the Administration of Initial Public Offerings and Listings on the ChiNext Board" (CSRC Order [No. 123]), and other applicable rules.
- This issuance has significant changes in the issuance process, online and offline subscription, payment, and suspension of issuance, which investors should pay close attention to:
- (1) The issuer and the lead underwriter, Dongfang Citigroup Securities Co., Ltd. (hereinafter referred to as "Dongfang Citigroup" or "the lead underwriter"), have determined the issuance price to be 7.11 RMB per share based on the results of the preliminary inquiry, considering the issuer's fundamentals, market conditions, valuation levels of comparable listed companies, fundraising needs, and underwriting risks. Investors should subscribe at this price on November 14, 2017 (T day) without needing to pay subscription funds at the time of application. The offline subscription date coincides with the online subscription date, both on November 14, 2017 (T day). The offline subscription time is from 9:30 to 15:00, and the online subscription time is from 9:15 to 11:30 and 13:00 to 15:00.
- (2) After the preliminary inquiry, the lead underwriter will rank all participating subscription objects based on their bid prices from high to low, and for the same bid price, by the proposed subscription quantity from small to large, and by the time of declaration (according to the time records in the Shenzhen Stock Exchange's offline issuance electronic platform) from late to early. The highest portion of bids will be excluded, and the excluded subscription volume must not be less than 10% of the total subscription volume. When the highest bid price matches the determined issuance price, bids at that price may not be excluded, and the exclusion ratio may be less than 10%, with the excluded portion not participating in the offline subscription.
- (3) Online investors must express their subscription intentions independently and may not fully entrust securities companies to apply for new shares on their behalf.
- (4) Offline investors must pay the subscription funds in full and on time according to the "Announcement on the Preliminary Allocation Results of Jiangsu Tianchang Composite Materials Co., Ltd.'s Initial Public Offering of Shares and Listing on the ChiNext Board" by 16:00 on November 16, 2017 (T+2 day), based on the final determined issuance price and preliminary allocation quantity. Subscription funds must be received by 16:00 on November 16, 2017 (T+2 day). Investors must comply with the relevant regulations of their securities companies regarding fund transfers. If the same subscription object is allocated multiple new shares on the same day, they must ensure full payment for each new share separately and fill in the remarks as required. If the funds for a single new share are insufficient, it will render the allocation of all new shares for that subscription object invalid, and the consequences will be borne by the investor.
- (5) If the total number of shares subscribed for by offline and online investors is less than 70% of the total number of shares offered, the lead underwriter will suspend the new share issuance and disclose the reasons for the suspension and subsequent arrangements.
- (6) Offline investors who provide valid bids but do not participate in the subscription or fail to pay the subscription funds in full and on time will be deemed in breach of contract and will bear the corresponding liabilities. The lead underwriter will report the breach to the China Securities Association. Online investors who have failed to pay in full after winning bids three times within 12 months will be prohibited from participating in new share subscriptions, convertible bonds, and exchangeable bonds for six months.