Aoyuan Gold announces a strategic capital increase to further strengthen its position as a leading provider of integrated packaging solutions with the support of Jiadeng Investment.

Target Company Overview

In June 2015, Aoyuan Gold (002701) announced a three-year private placement plan to raise up to 2.5 billion yuan, with a share price set at 23 yuan. Jiadeng Investment and its wholly-owned public fund, Jiu Tai Fund, are jointly subscribing to 300 million yuan of this offering. Aoyuan, a leader in the metal packaging sector, has experienced rapid growth over 15 years, having listed on the SME board in 2012. The company specializes in the research, design, production, and sale of metal packaging solutions for food and beverages, establishing itself as a frontrunner in China’s metal packaging industry.

Benefiting from the robust growth of the food and beverage sector, along with a strategic partnership with high-quality clients, Aoyuan has achieved an impressive annual growth rate of 36.8% over the past three years, far surpassing the industry average. In 2014, the company reported revenues of 5.45 billion yuan, with a net profit of 809 million yuan.

Industry Overview

China's metal packaging industry is characterized by rapid expansion, driven primarily by the increasing demand for packaged food and drink products. This has encouraged companies to invest in enhanced production capabilities and te