2050.HK 002050.SHE
Fortior made an IPO

Refrigeration and air conditioning component maker Zhejiang Sanhua Intelligent Controls Co. Ltd. (2050.HK, 002050.SZ) launched its Hong Kong IPO on Friday, aiming to raise up to HK$8.1 billion ($1.03 billion) by sell 360 million shares for HK$21.21 to $22.53 each. The public offering for local Hong Kong investors will account for 7% of shares being sold, with the remainder allocated to international buyers. The subscription period will close on June 18, with trading set to commence on June 20.

Sanhua reported revenue of 28 billion yuan ($3.9 billion) for 2024, up 13.8% year-on-year. Refrigeration and air-conditioning system components contributed 59.3% of sales, while automotive parts made up the remainder. Its net profit for the year climbed 6.1% to 3.1 billion yuan.

Sanhua plans to use 30% of the IPO proceeds for product development, and about 30% for expansion and improving its automation. About 25% will be used to expand its overseas production capacity, and about 5% will go to strengthening its digital and intelligent infrastructure.

By Lau Chi Hang

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