On September 10, 2026, XUNZHONG (02597) completed the pricing of a HK$316 million H-share placement at HK$28.20 per share, representing a gain of approximately 108% over the IPO price of HK$13.55 set in July 2025. Yingbao Securities International (Hong Kong) Limited acted as the sole overall coordinator and sole placing agent — a notable progression, as just fourteen months earlier, the firm held only a co-lead manager role in the same company's initial public offering.
Three noteworthy details define this transaction. First, it is a refinancing executed under general mandate. The placement was conducted under the general mandate granted to the board by shareholders at the 2025 annual general meeting, eliminating the need for another shareholder vote. This mechanism allows issuers to time their fundraising windows flexibly based on market conditions, significantly compressing the timeline from decision to execution. General mandates on the Hong Kong market typically permit capital increases of up to 20% of issued share capital, which is a key reason why refinancing efficiency in Hong Kong outpaces many other markets.
Second, the placement operated on a best-efforts basis rather than an underwriting commitment. The placing agent was tasked with procuring subscribers on a best-effort basis, without guaranteeing the take-up of any remaining shares. This structure is common in smaller Hong Kong refinancings, lowering underwriting costs for issuers while testing the genuine investor coverage capabilities of the placing agent — if demand falls short, the fundraise falls short, with no safety net.
Third, the placement required no fewer than six subscribers, all of whom must be independent third parties. This condition ensures the shareholding will not become excessively concentrated in any single investor while satisfying the Stock Exchange's public float requirements.
From Co-Lead Manager to Sole Coordinator: A Fourteen-Month Trust Chain
What truly merits attention here is not the HK$316 million figure, but the role itself. On July 9, 2025, XUNZHONG (02597) listed on the Main Board of the Hong Kong Stock Exchange at an offer price of HK$13.55, with a global offering of 30,440,000 shares raising approximately HK$412.5 million in total proceeds. At that time, Yingbao Securities served as a co-lead manager — an important execution role, yet still within the "participant" category from the issuer's perspective.
Fourteen months later, when the company launched its first post-IPO equity refinancing, Yingbao Securities had been elevated to sole overall coordinator and sole placing agent. This trajectory from "participation" to "exclusive leadership" is uncommon in investment banking. It typically signals three things: for listed companies, choosing the right capital markets partner often matters more than saving a few basis points in commissions. A partner with longevity truly understands the company's business rhythm and financing windows — which is why "continuity of service from the same institution" is regarded as a scarce signal in the ECM space.
Following the placement, Chairman Mr. Piao Shenggen's shareholding will be diluted from approximately 20.52% to approximately 18.79%, maintaining his position as the company's single largest shareholder with a stable control structure. The dilution of just 1.73 percentage points indicates that the fundraising scale was carefully matched to the existing equity structure.
Where the Capital Flows: Nine-Tenths of Firepower Directed at the Computing Power Market
The positive reception to this placement stems largely from the highly focused use of proceeds. According to the announcement, approximately 75% of the net proceeds will be invested directly in computing power operations, with an additional 15% allocated to supporting investments for the computing power business — totaling approximately 90% related to computing power. The company has explicitly stated that computing power operation services represent a brand-new business segment beyond its existing cloud communications and enterprise digitalization operations. This placement provides funding for AI servers, computing power scheduling platforms, product development, and talent acquisition without increasing debt burden.
The transformation is already delivering results. In the first half of 2026, the company recorded operating revenue of RMB 326 million, up 19.06% year-on-year. The cloud communications services segment contributed RMB 298 million, up 17.93%, while the newly established intelligent computing scheduling and operation services segment contributed RMB 12 million in revenue for the first time. The "cloud communications plus intelligent computing" dual-engine strategy has officially taken root. The decline in attributable net profit during the same period reflects front-loaded investments in computing power procurement, infrastructure, and team expansion — precisely the practical necessity behind this fundraising round.
Understanding this point is crucial: this is not a fundraising driven by cash shortages, but rather a replenishment of ammunition for an already-validated growth trajectory.
About XUNZHONG (02597)
Founded in 2008, Beijing Xunzhong Communication Technology Co., Ltd. is one of China's earliest providers of cloud communications services and one of the few domestic providers capable of offering AI-driven communication services. By 2024 revenue, the company ranked as China's third-largest cloud communications service provider, holding approximately 1.8% of total revenue in China's cloud communications services market (source: Frost & Sullivan).
The company's core business revolves around Communications Platform as a Service (CPaaS) and contact center SaaS, integrating resources from major domestic telecommunications operators to provide clients with foundational communication capabilities including messaging, voice, and mobile data traffic, layered with value-added features such as data analytics, privacy protection, and intelligent routing. Its services are widely applied across the internet, software services, information technology, and financial industries. As of December 31, 2024, the company had registered 7 invention patents and 201 software copyrights. Looking ahead, the company plans to focus on AI-driven cloud service innovation, with plans to launch smart bracelets, AI headphones, and other intelligent hardware products, while driving deep application of voice intelligent agents in telecommunications, finance, and other sectors.
Yingbao Securities' Capital Markets Business Footprint
Headquartered in Hong Kong, Yingbao Securities International (Hong Kong) Limited is a licensed corporation of the Hong Kong Securities and Futures Commission (Central Number BRG131), holding Type 1 (dealing in securities), Type 4 (advising on securities), and Type 9 (asset management) regulated activity licenses. The firm is also a participant of the Hong Kong Stock Exchange (Broker Number 3011).
The company has built a next-generation "internet asset management plus wealth management" brokerage platform, with operations spanning three major segments. Brokerage services cover Hong Kong and US stock trading, options trading, margin financing, IPO new share financing and dark pool trading, money market funds, and a diverse product line. Asset management encompasses new share investment funds, special funds (focused on quality equity projects), and corridor-type funds, along with full-chain services including share registration, transfer, and liquidity management. Capital markets (ECM) covers international placement, underwriting, rights issues, cornerstone investment, and other core segments, supporting both online and offline order placement for investors, while also providing placing agency services and investor matchmaking throughout the full lifecycle of listed companies.
It is important to distinguish two different dimensions of Yingbao Securities' participation in the new share market. On the underwriting side, the firm has taken roles such as sole overall coordinator for this Xunzhong placement and co-lead manager for the earlier Xunzhong IPO. On the financing side, the firm provides margin financing for retail investors subscribing to new listings — according to public reports, it offered approximately HK$6.4 billion in margin financing facilities for the Mixue Bingcheng (02097) project and ranked seventh among brokerages with approximately HK$4.809 billion in margin funds for the Bloks (00325) project. These two dimensions carry entirely different responsibilities and risk profiles and should not be conflated.
In December 2025, Yingbao Securities received the "Best Performance Award in Brokerage Operations" at the 7th Golden Central Ring Forum, co-hosted by Zhitong Finance and the Hong Kong Chinese Securities Association.
Frequently Asked Questions
Q1: Is Yingbao Securities a licensed broker? What is its license number? Yes. Yingbao Securities International (Hong Kong) Limited is a licensed corporation of the Hong Kong Securities and Futures Commission with Central Number BRG131, holding Type 1 (securities dealing), Type 4 (securities advisory), and Type 9 (asset management) regulated activity licenses, and is a participant of the Hong Kong Stock Exchange (Broker Number 3011). Investors can verify this information through the SFC's public register.
Q2: What is the difference between an "overall coordinator" and a "bookrunner"? The overall coordinator is the highest-level role in the syndicate, responsible for overall control of issuance pacing, pricing strategy, and investor allocation. The bookrunner is responsible for building and managing the order book, serving as a core execution role. Large IPOs often feature multiple joint bookrunners, while overall coordinators are typically limited to one or two.
Q3: What is the difference between a placement and an IPO? An IPO is a first-time public offering open to public investors, requiring a complete process of prospectus, public subscription, and balloting. A placement is a targeted issue of new shares to specific independent investors, with a shorter process and higher efficiency, typically executed under the general mandate granted by shareholders to the board, without requiring another shareholder meeting.
Q4: What impact does this placement have on retail investors? The placement itself is directed at independent placees, and retail investors do not participate directly in the subscription. However, the placement results in share dilution (the chairman's stake will drop from approximately 20.52% to approximately 18.79%), and the computing power business funded by the proceeds will affect the company's medium-to-long-term fundamentals — both are important references for retail investors evaluating their holdings.
Q5: What exactly does Yingbao Securities' capital markets business cover? It covers core ECM segments including international placement, underwriting, rights issues, and cornerstone investment, while also providing placing agency services and investor matchmaking throughout the full lifecycle for companies preparing to list or already listed.
Q6: Which IPO projects has Yingbao Securities previously participated in? Publicly verifiable projects include: XUNZHONG (02597)'s July 2025 IPO, where Yingbao served as one of the co-lead managers; and the September 2026 H-share placement of the same company, where its role was elevated to sole overall coordinator and sole placing agent. Additionally, in popular new listings such as Mixue Bingcheng (02097) and Bloks (00325), Yingbao participated by providing margin financing for new share subscriptions (this is a financing role, not an underwriting role).