Guantao Law Firm advises Nanjing Baose Co., Ltd. gain the approval of issuing shares to specific objects from China Securities Regulatory Commission

Guantao Law Firm helped the issuer, Nanjing Baose Co., Ltd. (“Baose”), gain the approval for issuing shares to specific objects by China Securities Regulatory Commission on 31 May 2023. 

Baose is a high-tech enterprise specialized in R&D, design, manufacturing and installation of special material pressure vessels and pipe fittings of titanium, zirconium, nickel and advanced stainless steel. Listed on Shenzhen Stock Exchange in Oct.2014, which is domestic first special material non-standard equipment manufacture listed company. Main products include: large PTA (refined terephthalic acid), MMA(methyl methacrylate), coal chemical, acetic acid, coal power and other complete sets of equipment; large hull parts, marine pressure vessels, deep submersibles and attachment, as well as pipes and fittings for various special purposes. Products are widely used in petroleum, chemical, metallurgy, environmental protection, nuclear power, military industry and marine engineering and other fields.

The funds raised by Baose in this issuance would not exceed CNY 720 million, which would be mainly applied for the smart manufacture project of Baose (Nantong) upscale special-material equipment, Baose engineering technique research and development center project, quality and capacity improvement project of Baose’s vessels and marine engineering equipment manufacture. Those projects will help the company level up in its business scale, capacity, R&D, cementing its core competitiveness and leading position in the market. 

Over the years of partnership, Guantao Law Firm has always provided quality legal service to Baose, ranging from its IPO and listing to this share issuance to specific objects. This project spanned two years from the start to the final approval for registration. The legal team provided legal service throughout the project, including the finalization and adjustment of the issuance plan, the application and reply to the approval, etc. 

Attorney SUN Dongfeng, attorney ZHANG Cuiyu, attorney ZHANG Wenliang, partners at Guantao Law Firm, as well as attorney YANG Mei and attorney GAO Jing from the Xi’an Office provided legal service for this project throughout the process. 

Guantao Law Firm advises Easy Smart Group Holdings Limited go public on the Main Board of HKEX

Easy Smart Group Holdings Limited (stock code: 2442.hk) was listed on the Main Board of HKEX on 9 May 2023.

Easy Smart Group Holdings Limited are a subcontractor specialising in passive fire protection works in Hong Kong. Their passive fire protection works generally involve the design, selection, procurement and installation of appropriate materials and components in a building to reduce or prevent the spread and effects of fire, heat or smoke without requiring detection or activation upon detection.

The Hong Kong Office of Guantao Law Firm served as the sole sponsor, joint overall coordinator, co-manager, and the legal counsel of the underwriter, providing legal service throughout the process. Attorney LI Jiaxue, partner at the Hong Kong Office of Guantao Law Firm, and his team were responsible for this project. 

Guantao Law Firm advises CCCC Second Highway Engineering Co., Ltd. complete 2023 (Phase I) public offering of Sci-Tec Innovation Extendible Corporate Bonds to professional investors

Guantao Law Firm has recently helped CCCC Second Highway Engineering Co., Ltd. (“CCCC Second Highway Engineering”) complete an issuance of 1.5 billion yuan public offering of Sci-Tec Innovation Extendible Corporate Bonds (Phase I) to professional investors. The product “Second Highway YK01” amounted to CNY 500 million with 3.29% annual coupon, and the product “Second Highway YK02” amounted to CNY 1 billion, which pays 3.60% annual coupon. The corporate credit rating of CCCC Second Highway Engineering was AAA.

CCCC Second Highway Engineering Co., Ltd. (CCCC Second Highway Engineering) was established in 1964 in the historical city Xi’an and is the subsidiary of a Fortune 500 company - China Communications Construction Company Limited. It is dedicated to the infrastructure of “Big Traffic” “Big City” and works in areas including roads, bridges, tunnels, railways, urban transportation, traffic hubs, comprehensive urban development, municipal service, house building, water conservancy, and ecological protect. It provides comprehensive services to clients across the industry chain, including investment, construction, and operation. It runs business in the 31 provinces and municipalities of China, as well as more than 30 overseas countries. It currently has over 500 projects in progress. 

Attorney TIAN Xiangqun, partner of the firm, was responsible for the project. Attorney WANG Fan and attorney SUN Hong, also partners of the firm, signed the documents. Attorney ZHANG Wenliang did the internal review. Attorney DU En also made important contributions to this project. 

Guantao Law Firm advises client on issuing China’s first asset-backed securities focusing on both green industry and energy supply 

Guantao Law Firm has recently helped Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited issue China Securities-China Gas-Yifang 2023 Year Phase I Green Supply Chain ABS (energy supply). This served as China’s first ABS focusing on both green industry and energy supply. 

Guantao Law Firm provided full legal service for the ABS issuance, including the design of the transaction structure, due diligence of the underlying assets, drafting and modifying transaction documents, and providing legal opinions.

Attorney CUI Xiangwei and attorney XUE Zhihong, both partners of Guantao Law Firm, and attorney SONG Song and legal assistant MA Ming provided legal service in this project. 

Guantao Law Firm advises UCAR go public at NASDAQ

U Power Ltd., (“UCAR”, “the company”) announced the price of its initial public offering on April 20, 2023, which issued 2,416,667 ordinary shares at a public price of USD 6.00 per ordinary share. The gross proceeds of the offering were approximately USD 14.5 million, before deducting underwriting discounts and other offering expenses. The ordinary shares began trading on the Nasdaq Capital Market on April 20, 2023 (EDT) under the symbol “UCAR”.

As an innovative technology company, UCAR has undergone a transformation from a leading EV car retail and service platform with hundreds of retail service network across the country and nearly RMB 10 billion units order. UCAR is aiming to arrive the next future for commercial EV cars by discovering that autonomous battery replacement is the best solution to continuously power supplement, reduce costs, and improve operational efficiency.

As the Chinese legal team to UCAR, Guantao Law Firm provided legal service and supports relating to Chinese laws. The project was jointly completed by the Beijing, Hangzhou and Shanghai team of the firm, including attorney ZOU Jun (partner), attorney MA Jianrong, attorney LI Yan, attorney CAO Yujia (lead attorney), attorney DONG Liya and attorney XIA Jiafeng. Attorney WANG Yuwei’s team provided legal service in data security and compliance. 

Guantao Law Firm advises client issue Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited 2023 Year Phase III China Gas Asset-Backed Notes 

Guantao Law Firm has recently helped Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited issue Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited 2023 Year Phase III China Gas Asset-Backed Notes at National Association of Financial Market Institutional Investors.

Guantao Law Firm provided legal service for the issuance throughout the process, including the design of the transaction structure, due diligence of the underlying assets, drafting and modifying the transaction documents and providing legal opinions.

Prior to this project, the firm had assisted the client with its issuance of Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited 2023 Year Phase I China Gas Asset-Backed Notes and Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited 2023 Year Phase II China Gas Asset-Backed Notes.

Attorney CUI Xiangwei and attorney XUE Zhihong, both partners of Guantao Law Firm, attorney SONG Song and legal assistant MA Ming provided legal service in this project. 

Guantao Law Firm and Ashurst LLP assist Chengdu Major Industrialization Project Fund in participating in the France-China Cooperation Fund

The article, Eurazeo bullish on China’s PE investment environment, published on China Daily on 12 April 2023, showed the opinions of Christophe Baviere - Eurazeo’s co-chairman and CEO and part of the French presidential delegation to Beijing - on China’s investment environment. It also highlighted Chengdu Industry Investment Group’s engagement in the France-China Cooperation Fund through Chengdu Major Industrialization Project Fund.

Eurazeo, a major European private equity player, said it has been bullish about the economy and investment environment in China, where the firm advises mid-sized European companies accelerate growth and tap into the booming local market. Christophe Baviere said there is still room to grow in common understanding between China and Europe, and “in Europe, France is probably a good gate for Chinese business to start to interact with Europe. Both markets — China and Europe — need to know each other better”.

Medical devices, business services and advanced manufacturing are sectors of focus, which bode well with the future trends of development in China, Christophe Baviere said.

Cooperating with many Chinese institutions, such as China Investment Corporation (CIC), Eurazeo has empowered European companies by building long-term relationships to tap business opportunities in China. In 2020, the France-China Cooperation Fund, was launched with an initial amount of EUR 400 million. The fund, built by Eurazeo, CIC and BNP Paribas, is reaching EUR 1 billion and has attracted additional investment commitments from leading investors such as New China Life, Chengdu Industry Investments Group Co., Ltd. and Taiping Financial Holdings.

Chengdu Major Industrialization Project Fund (Chengdu Major Industrialization Project Phase I Equity Investment Fund Co., Ltd.), which is under Chengdu Industry Investment Group, was founded in 2020 with a target size of CNY 40 billion. It will mainly support and invest in major supportive and strategic projects in Chengdu’s advanced manufacturing industry as well as key projects in the industry chain. The fund was included in the Top 50 Government Guidance Funds 2022, China VC/PE Fund Limited Partners Ranking 2022 by Zero2IPO Research. 

Attorney CUI Liguo, managing partner of Guantao Law Firm, said,

“Guantao Law Firm, together with Ashurst LLP, provided one-stop legal service to our client in the France-China Cooperation Fund. This is a testament of our capability in cross-border investments and transactions with our cross-jurisdiction, cross-culture and multilingual legal service.”

Jini Lee, Head of Region Asia of Ashurst, said,

“Since our establishment in 1822, Ashurst’s business network has covered 17 countries over the past two centuries. In China, we have formed closer partnership through Ashurst Guantao Joint Operation Office. Together, we can better work for our clients with integrated, quality, and effective legal service. This has greatly helped us in the service for the France-China Cooperation Fund.

Attorney XU Rongyuan, partner at Guantao Law Firm, was responsible for this project. Attorney Dan Yang, partner at Ashurst, was responsible for the overseas legal team, and attorney QIU Guangli, partner at Guantao Law Firm, was head of the Chengdu team. They worked together to facilitate the service across jurisdictions. Attorneys at our offices provided legal service for Chengdu Major Industrialization Project Fund’s participation in the France-China Cooperation Fund throughout the process. Other members also participated in this project, including ZHU Xiaoya, MAO Yaqian from Beijing Office of Guantao Law Firm, CHEN Chen, WANG Mengting from the Beijing Office of Ashurst, Daniel Oehvall from the Shanghai Office of Ashurst, and Ashurst’s fund legal team in related European jurisdictions. 

The legal service provided by Guantao Law Firm and Ashurst included participating in the whole business negotiations and offering legal opinions; conducting due diligence of the overseas fund manager of the France-China Cooperation Fund and providing due diligence report; drafting, reviewing, and modifying related agreements and documents including the translation work; providing legal opinions; and assisting in the process of government approval. 

Guantao Law Firm has over 10 years of strategic cooperation with Ashurst LLP. Approved by the Ministry of Justice of the People’s Republic of China, Ashurst Guantao (SHFTZ) Joint Operation Office was founded in February 2018. 

Guantao Law Firm advises ChiNext-listed Yanggu Huatai gain approval of the Listing Committee of SZSE concerning the issuance of convertible bonds to non-specific objects 

The application of issuing convertible bonds to non-specific objects (“this issuance”) of Shandong Yanggu Huatai Chemical Co., Ltd. (“Yanggu Huatai”, “the company”, stock code: 300121), was approved by the Listing Committee of SZSE in the 18th Examination Meeting in 2023. 

Yanggu Huatai's main products, rubber chemicals are important raw materials for tire production. The total annual production capacity of the company is 300,000 tons with Silane coupling agent seven products series mainly including Standard Rubber Chemicals, Pre-dispersed Rubber Chemicals, Insoluble Sulfurs, Processing Promoters, Rubber Protective Wax, Resins, and others, among which the rubber Antiscorching Agent CTP(PVI) is rated as Manufacturing Individual Champion by the Ministry of Industry and Information Technology of China.

This issuance will further enhance the company’s position in the rubber additives industry, as well as its market shares, competitiveness, and continuous profitability. 

Guantao Law Firm advises client issue Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited 2023 Year Phase II China Gas Asset-Backed Notes 

Guantao Law Firm has recently helped Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited issue Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited 2023 Year Phase II China Gas Asset-Backed Notes at National Association of Financial Market Institutional Investors.

Guantao Law Firm provided legal service for the issuance throughout the process, including the design of the transaction structure, due diligence of the underlying assets, drafting and modifying the transaction documents and providing legal opinions.

This is the second tranche of the client’s 5-billion-yuan shelf registration of asset-based notes. Prior to this, the firm had assisted the client with its issuance of Shenzhen Qianhai Yifang Heng Rong Commercial Factoring Corporation Limited 2023 Year Phase I China Gas Asset-Backed Notes of its 5-billion-yuan shelf registration. 

Attorney CUI Xiangwei and attorney XUE Zhihong, both partners of Guantao Law Firm, and attorney SONG Song and legal apprentice MA Ming provided legal service in this project. 

Guantao Law Firm advises China Development Bank on issuing USD loans in the North Kuwait Jurassic Project 

China Development Bank and a wholly owned subsidiary of Yantai Jereh Oilfield Services Group Co., Ltd. (“Jereh Group”, stock code: 002353) have recently signed the contract of mid and long-term foreign currency fixed-asset loan. The bank would grant loans denominated in US dollars, aiming to help its advancement and implementation of its Phase 5 North Kuwait Jurassic Project (North Kuwait Jurassic Project). Jereh Group provided guarantees for this loan project. 

North Jurassic Project, based in the North Kuwait Jurassic Gas Field, is a key strategic production project in 2022-2023 of Kuwait Oil Company (KOC). By quickly building oil, gas, and water production facilities through skid packages, it aims to meet the increasing demands at the local market, accelerate the development and utilization of the natural gas resources at the local place, and transform to clean energy structure. The production facilities of the North Jurassic Project are expected to manage 50,000 barrels of crude oil per day and 150 MMscfd qualified natural gas.

Kuwait is the fifth biggest oil producer in Organization of the Petroleum Exporting Countries (OPEC). Kuwait Oil Company is a subsidiary of Kuwait Petroleum Corporation (KPC), one of the globally leading petroleum producers, which works in the exploration, drilling and production of petroleum and natural gas, as well as storage and export of crude oil in Kuwait. 

Guantao Law Firm helped China Development Bank carry out the above-mentioned loans. It provided legal service throughout the process, including carrying out legal due diligence, drafting and modifying agreements, participating in negotiations, offering legal opinions and so on. 

Attorney XU Rongyuan, partner of the firm, attorney ZHU Xiaoya and attorney MAO Yaqian worked for China Development Bank in this project with efficient, quality, and professional legal service, which was highly valued by the client. 

Guantao Law Firm advises Lenovo Capital & Incubator Group invest Syneron Tech in the Pre-A round

Lenovo Capital and Incubator Group (LCIG) is Lenovo’s global technology industry fund focused on creating a smart ecosystem through strategic investments, including IoT, edge computing, big data, cloud, artificial intelligence (AI), and smart vertical solutions. LCIG focuses on early-stage IT venture capital while also internally incubating 10 subsidiaries and business, including Lenovo Enterprise Cloud and Lenovo Smart Healthcare. To date, Lenovo has invested in more than 100 companies, and of them 1/10th have become unicorn companies, such as Cambricon, Face++, and NIO.

Founded in April 2022, Syneron Tech was venture-built by Sinovation Ventures and successively received the seed funding and angel round financing from three funds under Sinovation Ventures. Syneron Tech is dedicated to using AI to empower and accelerate the R&D of synthetic peptide drugs and building a leading R&D platform of AI and synthetic peptide drugs. It allows AI to empower the whole industry chain from the design, selection, synthesis, and expression to the optimization of synthetic peptide drugs, which has been used in the R&D of several first in class pipelines. 

Syneron Tech completed its Series Pre-A financing in March 2023, which was led by Lenovo Capital & Incubator Group and GREE Industrial Investment with tens of millions of US dollars. Attorney ZHENG Zhifan, partner of Guantao Law Firm, attorney CAI Wei and attorney LI Jian advised Lenovo Capital & Incubator Group on the investment. Their excellent and efficient service was highly recognized by the client. 

Guantao Law Firm assists with the establishment and operation of Components and Integrated Circuit International Trade Center

Components and Integrated Circuit International Trade Center (“CICITC”) of China held the opening ceremony in Beijing on 3 February 2023 and was officially put to operation in Shenzhen. Attorney WU Xiaojing, attorney ZHENG Kexin, attorney Wang Yating, and other project members provided legal service for the establishment of the CICITC, including legal due diligence, design of the establishment plan and the final launch. Attorney HONG Yuhao provided great supports to the project team as well. 

Led by China Electronics Corporation and Shenzhen Investment Holdings Co., Ltd., CICITC was jointly built by 11 central enterprises, state-owned enterprises, and private enterprises with registered capital of CNY 2.128 billion. 

Based on industry big data, CICITC will play its role of “effective trade, industry hub, innovative service, and diverse storage”, and aims at improving the resilience and safety of the industry chain and supply chain and facilitating the integration of domestic and overseas market. With three trade methods – user procurement, aggregate bid and self-matching, it is dedicated to building a new access platform for electronic component and integrated circuit companies and products through marketized operation. This can help to integrate the upstream supply chain and the downstream supply chain and cluster development, laying a solid foundation for the high-quality development of China’s electronic information industry. 

Guantao Law Firm advises Shenzhen Kinwong Electronic Co., Ltd. gain approval for issuing convertible bonds project 

On 1 February 2023, the Shenzhen Office of Guantao Law Firm helped Shenzhen Kinwong Electronic Co., Ltd. (“Kinwong Electronic”) get the reply of approval from China Securities Regulatory Commission for its public issue of convertible bonds. This issue reached 1.154 billion yuan with a term of 6 years. 

Kinwong was founded in 1993 and listed on the main board of Shanghai stock exchange (stock code: 603228). Kinwong is the world’s leading high-tech company in R&D, production and sales of printed circuit boards and high-end electronic materials. As one of the world’s largest printed circuit board suppliers, they have set up 11 offices worldwide to provide localized & real-time FAE services. Kinwong’s annual revenue is 1.569 billion USD in 2022, ranking 17st in the PCB industry globally, and ranking third in the 2021 China Top 100 Domestic-funded PCB manufacturers.

The convertible bonds issuance of Kinwong Electronic was expected to be less than 1.154 billion yuan, which will all be used for the phase I project of Kinwong Electronic Technology (Zhuhai) Co., Ltd. - annual output of 600,000 m2 high density interconnect printed boards. After the completion, it will increase the company’s HDI capacity and produce HDI boards for cellphones, consumer electronics, 5G communication devices, automobile electronics, Mini LED and so on. This project will level up the company in various aspects, including size, production capacity, product portfolio, and technical strength, enforcing the company’s core competitiveness and market position. 

Attorney HUANG Yaping, attorney LUO Zengjin, both partners at the Shenzhen Office, and legal intern LIANG Jiage provided legal service for Kinwong Electronic throughout the process. Their expertise, strong execution, as well as effective, rigorous, and reliable work have won the trust of the client and partners. 

Guantao Law Firm helped Proteint (Tianjin) Biotech Co., Ltd. get the exclusive Series A funding from CDH Baifu

Proteint (Tianjin) Biotech Co., Ltd. (“Proteint”) got nearly 100 million yuan in the Series A investment, which was exclusively invested by the leading company CDH Baifu. The Tianjin Office of Guantao Law Firm worked as the legal adviser for this project with legal service throughout the process. 

Proteint is one the first High-tech companies introducing multiple omics technology in clinical use. With a focus on clinical needs, it brings proteomics and metabolomics on top of genomics, tackling the weakness of genomics alone with holistic and systematic research on “genes, proteins and metabolism”. It can provide more precise and even personalized clinical solutions. To date, Proteint has quality control capacity in the entire process and IP deployment covering seven areas, including sample preparation, auxiliary materials, mass spectrometry, data analysis, clinical use, etc. 

CDH Baifu, a leading institution in China, will use its strengths in biomedicine to empower Proteint, accelerate the clinical use of innovative technology, facilitate the clinical use of multiple omics and improve the development of precise medicine in China.

The Tianjin Office of Guantao Law Firm worked as the legal adviser and helped Proteint complete this financing project. The legal service covered the entire financing process, including the drafting, reviewing, and modifying of the transaction documents, participating in negotiations, and assisting in the project delivery. This project was led by attorney SONG Liang, partner of Guantao Law Firm, and supported by attorney YIN Weiqi and attorney ZHAO Shuyi. 

Guantao Law Firm advises Bank of Dalian on issuing 5 billion yuan open-ended capital bonds

On 16 January 2023, Bank of Dalian Co., Ltd. (“Bank of Dalian”) issued 5 billion yuan open-ended capital bonds at the Inter-bank Bond Market. The bond will reach maturity at the 5+N year. The Dalian Office of Guantao Law Firm provided legal service throughout the process.

Bank of Dalian is a major subsidiary of China Orient Asset Management Co., Ltd. with registered capital of 7.55 billion yuan. It currently has eight branches covering Beijing, Shanghai, Tianjin, Chongqing, Chengdu, Shenyang, Dandong and Yingkou. In Dalian, it has the head office and 10 administrative branches with a total of 167 outlets and 5,700 employees. It ranked 313th out of the 1000 biggest banks worldwide included by the British magazine, The Banker, which was published in July 2022.

The Dalian Office of Guantao Law Firm has extensive experience in areas of commercial banks’ IPO, compliance management, equity management, capital increase and share expansion, security issues, and asset-backed securitization. Dalian Office formed a professional legal team to work for this project, which was led by attorney LIU Yandi, senior partner of the firm. Attorney PAN Xiaoli, partner of the firm, was responsible for the on-site work. Other team members included attorney LIU Jingzhu, attorney CHENG Ming and attorney WANG Hao. 

Guantao Law Firm advises Sunny Optical on issuing USD 400 million sustainability linked bonds

On 17 January 2023, Sunny Optical Technology (Group) Co., Ltd. (“Sunny Optical”) (2382.HK) issued USD 400 million sustainability linked bonds with a term of 3.5 years and annual rate of 5.95%.

Sunny Optical is a leading manufacturer of optical components and products. This issuance has attracted a number of high-quality international investors and was oversubscribed nearly 5 times. 

This is the first overseas sustainability linked bond issued by a Chinese enterprise, as well as the first pricing of the offering of USD bonds by a Chinese enterprise in 2023. 

Guantao Law Firm worked as the legal adviser for Sunny Optical in this issuance and provided legal service throughout the process. Attorney GAN Weimin, partner of the firm, was responsible for this project. Attorney CHEN Xiaochuang and attorney XIAO Jiajia, both partners of the firm, dealt with this case. 

Guantao Law Firm advises Rizhiyi complete Series C financing 

Beijing Youtejie Information Technology Co., Ltd. (“Rizhiyi”) recently completed its Series C financing. The investor is Hubble Technology Venture Capital, a well-known institution focusing on investments in technology, information technology application innovation, and ecological development. 

Rizhiyi was founded in 2014 and was selected as the national “little giant” firm by Ministry of Industry and Information Technology in 2021. Rizhiyi led the log analysis market by developing China’s first log search engine Beaver and Search Processing Language. It launched a leading platform for log management and analysis – Rizhiyi Smart Log Center, which provides one-stop solutions covering data collection, cleaning, storage, search, analysis and visualization. 

Guantao Law Firm advised Rizhiyi on this project. Attorney YAN Hailing, partner of the firm, was in charge of this project and provided legal service throughout the process. The service included drafting, reviewing, and modifying documents related to the transaction, participating in negotiations, and finalizing the documents. It is worth noting that Guantao Law Firm had also worked for Rizhiyi in its previous financing projects, in which Sequoia Capital China injected 60 million yuan in the Series A financing, and Danhua Capital China, China Grand Prosperity Investment and Sequoia Capital China jointly invested 80 million yuan in the Series B financing.

Guantao Law Firm advises with the launch of the annual biggest charitable fund in education - China Fortune Trust “Tongxin Shanxing”

On 27 December 2022, China Fortune Trust’s first charitable trust – China Fortune Trust 2022 Tongxin Shanxing No. 1 Charitable Trust for Creative and Enjoyable Education was registered at Beijing Municipal Civil Affairs Bureau. This trust is the biggest charitable trust in education sector registered in China. With China Fortune Trust as the trustee, the registration size of the trust is 200 million yuan with a term of 20 years. The trust property will be donated for charitable programs in the education sector, including establishing schools, excellent teachers programs and outstanding students program, which will help promote education reform and conduction, and develop high-quality and characteristic education. 

The establishment of this trust is in line with the principle “finance for the wellbeing of the public”, an attempt to build the ecosystem of finance and charity, as well as realize the social values of wealth. This  project was greatly supported by the Civil Affairs Bureau. 

Guantao Law Firm advised the client on this charitable trust. Attorney LIU Dagang, partner of the firm, and attorney XU Siqi worked for the client with full-process, efficient and high-quality legal service. 

Guantao Law Firm advises Rizhao Transportation Energy Development Group issue 2023 Phase I Private Placement Notes

Guantao Law Firm has recently helped Rizhao Transportation Energy Development Group Co., Ltd. (“Rizhao Transportation Energy Development Group”) issue its 2023 Phase I Private Placement Notes. The size of this issuance is CNY 500 million with a term of 2+1 year. The corporate credit rating of the issuer, Rizhao Transportation Energy Development Group, is AA+. The issuance is of great significance in terms of expanding the enterprise’s financing channels, reducing financing costs, and optimizing the existing assets of state-owned enterprises. 

Rizhao Transportation Energy Development Group is a big state-owned sole proprietor in Rizhao city, Shandong province. The group aims to integrate the development of transportation and energy, becoming a comprehensive and core group supported by four industries: transportation, energy, smart manufacture, and health. The group has registered capital of CNY 2 billion and industry qualifications such as Grade 1 General Contracting Qualification for Road Engineering Construction. It is the general agency of asphalt in Shandong of the Fortune 500 company, South KOREA’S SK Group, and China’s second largest asphalt importer. 

Guantao Law Firm worked as the legal adviser for this project. Attorney TIAN Bo, partner of the firm, attorney ZHAO Dong, and attorney LIN Jingyi formed a project team and provided effective and high-quality legal service. 

Guantao Law Firm advises a property insurance company complete the transaction of secondary fund interests

One property insurance company has recently completed the transaction of secondary fund interests of private equity secondary market (S fund). The insurance company completed the transaction of two master funds: Yuanhe Bingsheng and Yuanhe Dingsheng, under the “China Insurance Investment -ORIZA FOFS Investment Plan”. In addition, it completed the transaction of four feeder funds and two direct secondary projects held by Beijing Lianrong Zhiyuan Equity Investment Partnership (Limited Partnership).

The Chongqing Office of Guantao Law Firm advised the client on the whole process, including the legal due diligence of the funds (3 master funds, 85 feeder funds, and nearly 600 sampled underlying assets) and the fund managers, stress testing of the underlying assets, due diligence reports and so on. This project was led by attorney LIU Runyu, partner and member of the Securities and Capital Markets Committee. Other project members included attorney LUO Li, attorney LI Yinna, attorney SHEN Zhan, attorney LIU Xiangyong, etc. 

Guantao Law Firm advises Qingdao Military-Civilian Integration Development Group on restructuring Taihai Manoir Nuclear Equipment Co., Ltd. and its wholly owned subsidiaries

On 23 December 2022, the People’s Court of Laishan District, Yantai City, Shandong Province ruled that the restructuring plan of Taihai Manoir Nuclear Equipment Co., Ltd. (“Taihai Nuclear”, stock code: 002366.SZ) and its wholly owned subsidiary Yantai Taihai Manoir Nuclear Equipment Co., Ltd. and other two companies was completed, and the restructuring process was ended. During the bankruptcy restructuring process of Taihai Nuclear and its wholly owned subsidiaries, Guantao Law Firm was entrusted by Qingdao Military-Civilian Integration Development Group Co., Ltd. (“Integration Development Group”) to advise it on acquiring Taihai Nuclear as the investor. 

The firm highly valued the restructuring project of Taihai Nuclear and its wholly owned subsidiaries and formed a project team consisted of senior partners and excellent attorneys specializing in the restructuring and securities. Despite the lack of restructuring rules of listed companies, as well as many complicated and specific problems, the legal team successfully completed the work. Based on proper legal applications, the attorneys learned from precedents and thoroughly analyzed the circumstances of Taihai Nuclear and its wholly owned subsidiaries. While facing all the challenges and difficulties, they provided many creative opinions and suggestions, and worked with the Integration Development Group to have in-depth communications with the court, local government, managers, listed company, creditors, the former shareholders, other investors, as well as securities regulatory bodies, stock exchanges and China Securities Depository and Clearing Corporation Limited. Their professional service helped complete the restructuring and investment project. 

Attorney JIN Yucheng, attorney WANG Wei, attorney PAN Xiaoli, attorney PENG Guanglu provided legal service for Integration Development Group, as the investor, throughout the process to acquire Taihai Nuclear. 

Guantao Law Firm advises Fande Technology complete angel financing 

The process mining company Fande Technology has recently announced its angel financing, which was led by Sinovation Ventures and invested by Infaith Group and TusStar with tens of millions of yuan. The funds will be mainly used to improve its products, build market and technology ecosystem. 

Guantao Law Firm worked as the legal adviser for Fande Technology throughout the financing process. It helped the company deal with investor due diligence, optimize company structure, participate in transaction negotiations, review, a