#1KPMG Chinese Mainland and Hong Kong IPO markets 2023 review and 2024 outlook 0 S 9 January 2024 kpmg.com/cn ¥ >H#2Contents -5.35% -0:80 TRY 267.506M 1.0518 17.029B TRY 4.26 12.515M 488.328 14.883B TRY 174.5 206.994M 1.062B 14.0768 TRY AL 18.519M 151.301M 13.768 TRY 7.9 10 100 100 10 010011011 001010101 010001001 101001101 110001010 1010010 010 0100110 11 00101011 01000001 10100 1101 110001010 1010010010 010011011 0010101012 0 1000 10010 10100 11011 11000 10 10 101001001 Global IPO landscape ✔ A-share IPO market 0011010 01000 2001 101001101 110001010 Hong Kong IPO market -9.86% -0.43 TRY 33.5M 87.435 1 0 1 0 1 0 0 0 1 0 1 0 0 0 1 0 0 1 1 0 1 0 1 1 1 0 1 0 0 1 0 0 1 0 0 0 37.365M 521.614M 0010100110100101101001°0 1 0 0 1 0 1 0 0 1 1 0 1 1 0 0 0 - Notr 340.649K 18.395 0010 0 1 0 1 0 1 0 1 0 0 0 25.839M 248.051 12.18 TRY 13.565B TRY 0 1 0 0 1 1 13.167B TRY 51.0 0 10 10 12.944B 1 423. 1 0 0 1 0 e 12.75481 13.7 001010 12.6598 TRY 10.1 23 10 10 10 47 0 111 1 12.2318 TRE 11.9 1 0 0 1 0 0 1 1 0 1 15.29% 1 001 e 90 0 1 0 1 0 0 1 0 1 0 1 0 0 1 10 0 1 1 0 1 1 0 0 0 1 0 1 0 1 00101010010011 -9.84% 56 TRY 1 2010 1 0 0 0 1 0 1 0 0 0 1 0 1 0 0 1 0.0 1 1 0 1 0 0 0 1 0 0 1 0 0 1 1.18M 257.089 00100111 0 1 0 1 0 0 1 1 0 1 1 0 0 9.516M 97.154 0 1 0 1 1 1 0 1 1 0 0 0 1 0 1 0 1 0 0 5.64M 196.387 0011010111 0 1 0 0 1 0 0 1 0 0 0 Güçlü Sat 12.533B T 0 101 0 0 1 1 0 1 0 0 1 0 1 1 Notr 1 2009 0 0 1 1 0 1 0 0 0 1 1 1 0 0 1 0 0 0 1 0 1 0 0 1 1 0 1 1 0 0 0 4.655M 452.65 11.0486 0 0 1 0 0 0 0 1 0 0 1 0 1 0 1 0 1 0 0 0 0 1 0 0 1 0 10 Notr 10.9698 TH 9.7 273.678K 100.5 11.2058 TRE 010101 10011 44 0 Notr 1 1 0 0 1 0 1 0 1 0 0 1 0 0 1 1 3.923M 159.02 10 10 0 0 1 0 0 1 0 0 1 0 0 0 1 0 1 3.759M 116.902 10.5398 TRE 11.7 0 0 1 0 0 1 1 0 1 0 1 0 0 1 1 0 1 1 0 0 10 10 1 e Sat 16.246M 454.11 10.5338 TRY 5.6 0 10 10 1 1 0 1 1 0 0 0 1 0 1 0 1 0 0 0 0 111 0 8040100105.00% 1001 1 0 1 1 0 0 0 1 0 1 0 100101000 19.69% 1 0 10 10 0 1 1 0 1 0 0 1 0 1 1 1 0 0 1 0 0 1 1 0 1 0 0 0 1 1 010-4 TRY 0 0 0 1 0 1 0 0 108.82% 0 1 100 1 1 0 1 1 0 0 0 1 0 1 0 110001 0 1 0 1 0 0 1 0 0 1 1 TQ.2TRY 10 TON 1000001001 29.971M751.0 10.3018 10.2 1001000101001101120 00100 0 0 1 0 0 10 10 1870810 01.3 RY101000100Toor 0010 0 1 1 0 1 0 1 0 0 110101101 01010011011000 100100188111 1000101000110.00% 1 00-16.00 TRY 110 10 10 282281806 0010100110100101 1 1 0 0 10 10 0°1 0 1 0 0 1 0 1944 0 1 100 100000001101000110001001001001010101000105135000 € 010003 0 1 0 0 1 0 1 0 1 0 0 0 10 4940103.80186983020 € A 1010011 0 1 1 0 0 0 10 10 10 0 1 0 0 1 1 1 0 10 10 0 1 1 507-544K 1 19.05.1863039590 € 1100010101001001110101001101109 97.221K 1 8.142M 1 8,0928 TH 1131010 f O 0 -7.69% 9% 10.80 TRY KPMG ©2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved 9 RY -8.18% AL 4.629M 174.975M 8.0268 TRY 14.40 -19.4 TRY 1.812M 44.943M 7.968B TRY 13.30 13M 151.709M 7.812B TRY 9.49 6.85M 146.995M 7.8118 TRY 8.01 BY -5.46% -0.59 TRY Notr 635.702K 28.772M 7.391B TRY 13.04 Chinese Mainland and Hong Kong IPO markets | 2#33.05 Global IPO landscape KPMG 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms Waffiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved 1346 990.5 Vol 814.85 Chinese Mainland and Hong Kong IPO markets | 3#4Global IPO market: 2023 highlights Market uncertainties and a weak macroeconomy slowed global IPO activities in 2023 Geopolitical uncertainty Global IPO funds raised (2019-2023) (USD'B) 2,510 468 High interest rates 1,493 1,520 1,191 Economic recovery No. of deals 2023 Global IPO funds raised (by quarter) (USD'B) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 24 27 39 41 (1) Analysis based on actual data as at 31 December 2023. 1,371 USD131.1B Total Funds Raised Decrease of -35% compared to 2022 1,371 Completed IPOS Decrease of ~10% compared to 2022 14 Deals with fund raised >USD 1B Decrease of ~45% compared to 2022 il. USD95.6M Average Deal Size Decrease of ~25% compared to 2022 279 213 23 196 131 2019 2020 2021 2022 2023 (2) Sources: Bloomberg and KPMG analysis, included REIT deals and excluded special purpose acquisition company ("SPAC" or "blank check") deals. KPMG ©2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved Chinese Mainland and Hong Kong IPO markets | 4#52023 Global IPO Rankings FY2023 Shanghai 1st Stock Exchange USD 31.3B Shenzhen 2nd Stock Exchange USD 22.0B NASDAQ 3rd Stock Exchange USD 12.5B New York 4th Stock Exchange 5th USD 9.8B National Stock Exchange of India USD 6.9B Frankfurt Stock Exchange USD 9.1B Stock Exchange USD 31.1B Hong Kong Stock Exchange USD 12.8B Korea Stock Exchange USD 11.3B Other stock exchanges Hong Kong Stock Exchange ranks 6th among global stock exchanges in 2023 raising USD6.OB FY2022 Shanghai Stock Exchange USD 56.5B Shenzhen U.S. stock exchanges: -20% A-share stock exchanges: Global proceeds -40% Analysis based on actual data as at 31 December 2023. (1) (2) The exchange rate for USD/HKD is 7.75. (3) Sources: Bloomberg and KPMG analysis, included REIT deals and excluded special purpose acquisition company ("SPAC" or "blank check") deals. KPMG ©2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved Chinese Mainland and Hong Kong IPO markets | 5#62024 Global IPO market outlook In 2023, global IPO activities encountered notable challenges due to a combination of factors, including geopolitical uncertainties, high interest rates, and a slower-than-expected economic recovery. While the effects of these challenges might endure into 2024, there is reason to believe that the worst is over, presenting an opportunity for IPO markets to stabilise soon. In 2024, IPO candidates looking to restart their IPO plans will need to be adaptable and resilient in the face of changing economic conditions to increase their chances of success. " Factors affecting global IPO market Geopolitical uncertainties $ High interest rates Economic recovery T Paul Lau Partner Head of Capital Markets and Professional Practice KPMG China KPMG © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved Chinese Mainland and Hong Kong IPO markets | 6#7A-share IPO market KPMG P Q © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved Chinese Mainland and Hong Kong IPO markets 7#8A-share IPO market: 2023 highlights The A-share IPO market noticeably slowed down in 2023, yet it continued to top the ranking in global exchanges $ RMB373.9B Total Funds Raised A-share IPO stock exchange distribution Shanghai Stock Exchange STAR Market 2023: 2022: RMB 66.9B RMB 145.1B 41 deals 40 deals 2023: 2022: RMB 143.9B 67 deals RMB 252.7B 123 deals Shenzhen Stock Exchange 2023: RMB 25.8B 23 deals 2022: RMB 39.6B 43 deals ChiNext 2023: 2022: RMB 122.3B 110 deals RMB 179.6B 148 deals Beijing Stock Exchange Decrease of ~40% compared to 2022 2023: 2022: RMB 15.0B RMB 16.9B 77 deals 83 deals 318 Completed IPOS Decrease of 30% compared to 2022 RMB1.18B Average Deal Size Decrease of -20% compared to 2022 A-share IPO funds raised by quarter (RMB'B) A-share IPO sector distribution by funds raised 146 114 Others 78 36 71 deals Q1 106 deals Q2 91 deals Q3 50 deals Q4 ENR 6% [1 Industrials 41% TMT Slowdown in listings starting from the 3rd quarter 35% Sources: All analysis is based on WIND data and included REIT deals as of 31 December 2023. KPMG ©2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved Chinese Mainland and Hong Kong IPO markets | 8#9Regulatory Developments for A-share Capital Market KPMG February 2023 Expansion of the registration- based system across all A-share IPO markets © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved September 2023 China Securities Regulatory Commission (CSRC) unveiled measures to invigorate capital market Chinese Mainland and Hong Kong IPO markets 9#10Top 10 largest A-share IPOS Proceeds 2023 Company Exchange Sector (RMB billion) 1 Hua Hong Semiconductor Limited SSE-STAR 21.2 TMT 2 Semiconductor Manufacturing Electronics (Shaoxing) Corporation SSE-STAR 11.1 TMT 3 Nexchip Semiconductor Corporation SSE-STAR 10.0 TMT st 4 China Fund Management SPIC New Energy REIT * SSE 5 Shaanxi Energy Investment Co., Ltd. SZSE 7.8 7.2 Infrastructure / Real Estate Top 3 IPOs in terms of funds raised are semi-conductor and software design companies ENR co 6 Baimtec Material Co.,Ltd. SSE-STAR 7.1 Industrials 7 CSI Solar Co., Ltd. SSE-STAR 6.9 ENR 8 Huaqin Technology Co., Ltd. SSE 5.9 TMT 9 Hunan Yuneng New Energy Battery Material Co.,Ltd. SZSE-ChiNext 4.5 Industrials 10 Jiangsu Xukuang Energy Co., Ltd. SSE 4.3 ENR 23% Proceeds 2022 Company Exchange Sector (RMB billion) 1 China Mobile Limited SSE 56.0 TMT of total IPO proceeds raised by top 10 IPOs in 2023 2 CNOOC Limited SSE 32.3 ENR 3 Shanghai United Imaging Healthcare Co., Ltd. SSE-STAR 11.0 Healthcare / Life Sciences ChiNext 4 CICC Anhui Traffic Control Expressway REIT * SSE 10.9 Infrastructure / Real Estate 5 Hygon Information Technology Co., Ltd. SSE-STAR 10.8 TMT 6% 6 Jinkosolar Co., Ltd. SSE-STAR 10.0 TMT 7 Huaxia China Jiaojian Expressway REIT * * SSE 9.4 Infrastructure / Real Estate STAR Market 8 ASR Microelectronics Co., Ltd. SSE-STAR 6.9 TMT Traditional 9 Hubei Wanrun New Energy Technology Co.,Ltd. SSE-STAR 6.4 Industrials 65% 10 Shenzhen Hello Tech Energy Co.,Ltd SZSE-ChiNext 5.8 Industrials 29% * Refers to real estate investment trusts listings ("REITS") Note: All analysis is based on WIND data as of 31 December 2023. Source: Wind and KPMG analysis KPMG © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved 2023 Top 10 largest IPOs distribution by stock exchange Chinese Mainland and Hong Kong IPO markets | 10#11A-share IPO Pipeline Number of active A-share IPO applicants 1,138 Top 3 active A-share IPO applicant sectors 139 974 943 962 924 739 917 70 795 780 53 469 124 99 133 813 825 41% 779 69 122 148 389 482 430 420 368 390 360 355 305 288 254 Industrials 224 186 181 141 197 207 169 159 164 152 129 115 TMT 323 296 315 315 287 286 262 218 204 231 218 153 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 2023 Q3 Q4 ■Traditional market ■STAR Market ■ChiNext BSE Note: All analysis is based on WIND data and included REIT deals as of 31 December 2023. Active applicants included applications suspended due to the expiry of their financial information (+). Historically these applications have been reactivated promptly with updated financial information submitted by the listing applicant. KPMG © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved Healthcare / Life Sciences 27% 10% Chinese Mainland and Hong Kong IPO markets 11#122024 A-share IPO market Outlook Impact of CSRC policies Solid IPO pipeline of around 780 01 02 03 The Chinese Mainland's post-Covid-19 economic recovery has fallen short of expectations. It is imperative for the Chinese government to support the positive development of its capital markets to effectively serve the real economy. Looking ahead to 2024, A-share IPO activities are expected to remain steady as regulators continue to support areas related to technology, innovation and sustainability. These measures will foster long-term and sustained growth of the A- share capital market. " Effectiveness of economic and fiscal policies KPMG © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved Louis Lau Partner Capital Markets KPMG China Chinese Mainland and Hong Kong IPO markets | 12#13農 Hong Kong IPO market KPMG 07 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, Private English company limited by guarantee. All rights reserved Chinese Mainland and Hong Kong IPO markets#14Hong Kong IPO market: 2023 highlights Hong Kong IPO market was sluggish in 2023, but is expected to rebound in 2024 HK IPO funds raised by quarter (HKD'B) 21 HKD46.3B Total Funds Raised Decrease of ~55% compared to 2022 Load 70 Completed IPOs Decrease of -20% compared to 2022 7 11 7 HK IPO sector distribution by funds raised 18 deals 13 deals 13 deals 26 deals TMT 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 14% Number of active HK IPO applicants 181 145 HKDO.66B Average Deal Size 132 116 89 109 59 96 Decrease of ~45% compared to 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 == 2022 2023 Note: All figures are as of 31 December 2023, included listing by introduction, and excluded SPAC deals, De-SPAC deals and GEM transfer, unless otherwise stated Source: HKEX and KPMG analysis KPMG © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved Others Consumer Markets 25% Healthcare/ Life Sciences D 20% Top 3 active HK IPO applicant sectors 29% 27% 14% TMT Healthcare/ Life Sciences Consumer Markets Chinese Mainland and Hong Kong IPO markets | 14#15Regulatory Developments for HK Capital Market March 2023 Consultation Conclusion on Listing Regime for Specialist Technology Companies KPMG © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved February 2023 49.211 2126 0.061 New Regulations for Overseas Listings of Chinese Enterprises Announced December 2023 Consultation Conclusion on GEM Listing Reform Chinese Mainland and Hong Kong IPO markets | 15#16Top 10 largest HKIPOS 2023 Company Proceeds (HKD billion) Sector 1 ZJLD Group Inc 5.3 2 WuXi XDC Cayman Inc. 4.1 3 J&T Global Express Limited - W 3.9 4 REPT BATTERO Energy Co., Ltd 2.1 Industrials 5 Horizon Construction Development Limited 1.6 Infrastructure / Real Estate Consumer Markets Healthcare / Life Sciences Transport and Logistics Two out of Top 10 are Life Sciences Companies in 2023 6 Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. - B 1.6 Healthcare Life Sciences 7 Sino-Synergy Hydrogen Energy Technology (Jiaxing) Co., Ltd. 1.6 ENR 8 TUHU Car Inc. - W 1.3 TMT 9 Tian Tu Capital Co., Ltd. 1.1 Financial Services 10 Beijing Fourth Paradigm Technology Co., Ltd. 1.1 TMT 51% Proceeds 2022 Company (HKD billion) 1 China Tourism Group Duty Free Corporation Limited 18.4 2 Tianqi Lithium Corporation 13.5 3 CALB Co., Ltd. 10.1 4 Sunshine Insurance Group Company Limited 6.7 5 Onewo Inc. 6.3 6 Zhejiang Leapmotor Technology Co., Ltd. 6.3 7 JL Mag Rare-Earth Co., Ltd. 4.2 8 Lygend Resources & Technology Co., Ltd. 3.8 9 Huitongda Network Co., Ltd. 2.3 10 Ferretti S.p.A. 2.0 Sector Consumer Markets ENR Industrials Financial services וער of total IPO proceeds raised by top 10 IPOs in 2023 Infrastructure / Real Estate Industrials Industrials Industrials TMT Industrials Largest IPO in terms of funds raised: Consumer Markets Sector for both 2022 and 2023 Note: All figures are as of 31 December 2023, included listing by introduction, and excluded SPAC deals, De-SPAC deals and GEM transfer, unless otherwise stated Source: HKEX and KPMG analysis KPMG © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved Chinese Mainland and Hong Kong IPO markets | 16#172024 HK IPO Market Outlook Increasing connectivity with the Middle East KPMG AI, semiconductor & green tech Spin-off listings © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved 2023 marked a slow year for the Hong Kong IPO markets, as both corporates and investors exhibited caution amidst global market uncertainties. Despite the prevailing subdued market sentiments, the fundamentals of Hong Kong's capital market remain robust and resilient. With investors shifting their attention towards technologies such as artificial intelligence, semiconductors and green technology, Hong Kong is well positioned to spark a recovery in its IPO activity by embracing these growing trends. " Irene Chu Partner Head of New Economy and Life Sciences KPMG China Chinese Mainland and Hong Kong IPO markets 17#18KPMG Contact us Paul Lau Partner, Head of Capital Markets and Professional Practice KPMG China +852 2826 8010 [email protected] Irene Chu Partner, Head of New Economy and Life Sciences KPMG China +852 2978 8151 [email protected] Louis Lau Partner, Capital Markets Group KPMG China +852 2143 8876 [email protected] Mike Tang Partner, Capital Markets Group KPMG China +852 2833 1636 [email protected] © 2024 KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved оо Terence Man Partner, Capital Markets Group KPMG China +86 (10) 8508 5548 [email protected] Elton Tam Partner, Capital Markets Group KPMG China +852 2978 8188 [email protected] .... Chinese Mainland and Hong Kong IPO markets | 18#19KPMG in f home.kpmg/cn/socialmedia The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. © 2024 KPMG, a Hong Kong (SAR) partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Document Classification: KPMG Public