SHARE OFFER Amuse Group Holding Limited

466 Pages·2017·2.19 MB·English

Amuse Group Holding Limited
佰悅集團控股有限公司
(incorporated in the Cayman Islands with limited liability)
(Stock code: 8545)
SHARE OFFER
Sponsor
Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers
IMPORTANT
Ifyouareinanydoubtaboutanyofthecontentsofthisprospectus,youshouldobtainindependentprofessionaladvice.
Amuse Group Holding Limited
佰悅集團控股有限公司
(incorporatedintheCaymanIslandswithlimitedliability)
LISTING ON GEM OF
THE STOCK EXCHANGE OF HONG KONG LIMITED
BY WAY OF SHARE OFFER
Number of Offer Shares : 250,000,000 Shares
Number of Placing Shares : 225,000,000 Shares
(subject to reallocation)
Number of Public Offer Shares : 25,000,000 Shares
(subject to reallocation)
Offer Price : Not more than HK$0.35 per Offer Share
and expected to be not less than
HK$0.25 per Offer Share (plus
brokerage fee of 1%, SFC transaction
levy of 0.0027% and Stock Exchange
trading fee of 0.005%) (payable in full
on application in Hong Kong dollar
and subject to refund)
Nominal value : HK$0.01 per Share
Stock code : 8545
Sponsor
JointGlobalCoordinators,
JointBookrunnersandJointLeadManagers
Co-LeadManagers
HongKongExchangesandClearingLimited,TheStockExchangeofHongKongLimitedandHongKongSecuritiesClearingCompanyLimitedtake
noresponsibilityforthecontentsofthisprospectus,makenorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimanyliability
whatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisprospectus.
Acopyofthisprospectus,havingattachedtheretothedocumentsspecifiedinthesectionheaded“DocumentsDeliveredtotheRegistrarofCompanies
andAvailableforInspection”inAppendixVIItothisprospectus,hasbeenregisteredbytheRegistrarofCompaniesinHongKongasrequiredunder
section342CoftheCompanies(WindingUpandMiscellaneousProvisions)Ordinance.TheSecuritiesandFuturesCommissionandtheRegistrarof
CompaniesinHongKongtakenoresponsibilityastothecontentsofthisprospectusoranyotherdocumentsreferredtoabove.
TheOfferPriceisexpectedtobefixedbythePriceDeterminationAgreementbetweenourCompanyandtheJointGlobalCoordinators(forthemselves
andonbehalfoftheUnderwriters)onthePriceDeterminationDate,whichisexpectedtobeonoraroundThursday,24May2018andinanyevent,no
laterthan12:00noononSaturday,26May2018,orsuchlaterdateortimeasmaybeagreedbytheJointGlobalCoordinators(forthemselvesandon
behalfoftheUnderwriters)andourCompany.TheOfferPricewillnotbemorethanHK$0.35perOfferShareandisexpectedtobenotlessthan
HK$0.25perOfferShare.IfourCompanyandtheJointGlobalCoordinators(forthemselvesandonbehalfoftheUnderwriters)areunabletoreachan
agreementontheOfferPricebythatdateortimeorsuchlaterdateortimeasagreedbyourCompanyandtheJointGlobalCoordinators(for
themselvesandonbehalfoftheUnderwriters),theShareOfferwillnotbecomeunconditionalandwillnotproceed.TheJointGlobalCoordinators(for
themselvesandonbehalfoftheUnderwriters)may,withtheconsentofourCompany,reducetheaboveindicativeOfferPricerangeatanytimeprior
tothePriceDeterminationDate.Insuchacase,noticeofthereductionintheindicativeOfferPricerangewillbeavailableonthewebsiteoftheStock
Exchangeatwww.hkexnews.hkandthewebsiteofourCompanyatamusegroupholding.com.
Pursuant to the termination provisions contained in the Underwriting Agreements, the Joint Global Coordinator have the right in certain
circumstances,attheirabsolutediscretion,toterminatetheobligationsoftheUnderwritersundertheUnderwritingAgreementsatanytimepriorto
8:00a.m.(HongKongtime)onthedatewhendealingsintheSharesfirstcommenceontheStockExchange(suchfirstdealingdateiscurrently
expectedtobeonThursday,31May2018).Detailsofthetermsoftheterminationprovisionsaresetoutintheparagraphheaded“Underwriting—
Underwritingarrangementsandexpenses—PublicOfferUnderwritingAgreement—Groundsfortermination”inthisprospectus.Itisimportant
thatyourefertothatsectionforfurtherdetails.
Prior to making an investment decision, prospective investors should consider carefully all of the information set out in this prospectus,
includingtheriskfactorssetoutinthesectionheaded“Riskfactors”inthisprospectus.
18 May 2018
CHARACTERISTICS OF GEM
GEM has been positioned as a market designed to accommodate small and mid-sized
companies to which a higher investment risk may be attached than other companies listed on
theStockExchange.Prospectiveinvestorsshouldbeawareofthepotentialrisksofinvestingin
such companies and should make the decision to invest only after due and careful
consideration.
Given that the companies listed on GEM are generally small and mid-sized companies,
thereisariskthatsecuritiestradedonGEMmaybemoresusceptibletohighmarketvolatility
than securities traded on the Main Board and no assurance is given that there will be a liquid
market in the securities traded on GEM.
– i –
EXPECTED TIMETABLE
(Note 1)
Public Offer commences and WHITE and YELLOW
Application Forms available from . . . . . . . . . . . . . . . . . . . . . . . . . 9:00 a.m. on Friday,
18 May 2018
Application lists for Public Offer open (Note 2) . . . . . . . . . . . . . . . 11:45 a.m. on Thursday,
24 May 2018
Latest time for lodging WHITE and YELLOW
Application Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12:00 noon on Thursday,
24 May 2018
Latest time to give electronic application
instructionstoHKSCC(Note3) . . . . . . . . . . . . . . . . . . . . . . . . . 12:00 noon on Thursday,
24 May 2018
Application lists for Public Offer close (Note 2) . . . . . . . . . . . . . . 12:00 noon on Thursday,
24 May 2018
ExpectedPriceDeterminationDateonorbefore(Note4) . . . . . . . . . Thursday, 24 May 2018
Announcement of the final Offer Price, the level of indication
of interest in the Placing, the level of applications of
the Public Offer, the basis of allotment and the results
of applications in the Public Offer to be published
in our Company’s website at amusegroupholding.com and
the website of the Stock Exchange at www.hkexnews.hk
on or before . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wednesday, 30 May 2018
Announcement of results of allocations in the Public Offer
(with successful applicants’ identification document numbers,
where appropriate) to be available through a variety of
channels including our Company’s website at
amusegroupholding.com and the website of
the Stock Exchange at www.hkexnews.hk
(for further details, please refer to the section headed
“How to apply for Public Offer Shares —
10. Publication of results” of this prospectus)
on or before . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wednesday, 30 May 2018
Results of allocations in the Public Offer will be
available at www.tricor.com.hk/ipo/result
with a “search by ID” function on . . . . . . . . . . . . . . . . . . . . . Wednesday, 30 May 2018
Despatch/collection of refund cheques in respect of wholly or
partially unsuccessful applications and wholly or partially
successful applications in case the final Offer Price is less than
the maximum Offer Price paid for the applications pursuant
tothePublicOfferonorbefore(Notes6to9) . . . . . . . . . . . . . . . . . Wednesday,30May2018
Despatch/collection of Share certificates in respect of
wholly or partially successful applications pursuant to
thePublicOfferonorbefore(Notes5to8and10) . . . . . . . . . . . . . . Wednesday,30May2018
Dealings in Shares on GEM expected to commence
at 9:00 a.m. on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thursday, 31 May 2018
– ii –
EXPECTED TIMETABLE
The application for the Share Offer will commence on Friday, 18 May 2018 through
Thursday, 24 May 2018, being slightly longer than normal market practice of four days. The
application monies (including the brokerages, SFC transaction levies and Stock Exchange
trading fees) will be held by the receiving bank on behalf of the Company and the refund
monies, if any, will be returned to the applicants without interest on Wednesday, 30 May
2018. Investors should be aware that the dealings in the Shares on the Stock Exchange are
expected to commence on Thursday, 31 May 2018.
Notes:
1. AlltimesanddatesrefertoHongKonglocaltime,exceptasotherwisestated.Detailsofthestructureof
theShareOffer,includingitsconditions,aresetoutinthesectionheaded“Structureandconditionsofthe
ShareOffer”ofthisprospectus.
2. If there is a “black” rainstorm warning or a tropical cyclone warning signal number eight or above in
force in Hong Kong at any time between 9:00 a.m. and 12:00 noon on Thursday, 24 May 2018, the
applicationlistswillnotopenonthatday.Forfurtherdetails,pleaserefertothesectionheaded“Howto
applyforPublicOfferShares—9.Effectofbadweatherontheopeningoftheapplicationlists”ofthis
prospectus.
3. ApplicantswhoapplyforPublicOfferSharesbygivingelectronicapplicationinstructionstoHKSCC
should refer to the paragraph headed “How to apply for Public Offer Shares — 5.Applying by giving
electronicapplicationinstructionstoHKSCCviaCCASS”ofthisprospectus.
4. ThePriceDeterminationDateisexpectedtobeonoraroundThursday,24May2018,andinanyevent,no
laterthan12:00noononSaturday,26May2018,orsuchlaterdateortimeasmaybeagreedbytheJoint
Global Coordinators (for themselves and on behalf of the Underwriters) and our Company. If, for any
reason,theOfferPriceisnotagreedonorbeforeSaturday,26May2018betweenourCompanyandthe
Joint Global Coordinators (for themselves and on behalf of the Underwriters), the Share Offer will not
proceedandwilllapseaccordingly.
5. SharecertificatesforthePublicOfferSharesareexpectedtobeissuedonorbeforeWednesday,30May
2018butwillonlybecomevalidcertificatesoftitleat8:00a.m.onThursday,31May2018providedthat
(a) the Share Offer has become unconditional in all respects; and (b) none of the Underwriting
Agreementshasbeenterminatedinaccordancewithitsterms.
6. Applicants for 1,000,000 Public Offer Shares or more on WHITE Application Form(s) may collect their
refund cheques (where relevant) and/or Share certificates (where relevant) personally from our Hong
KongBranchShareRegistrar,TricorInvestorServicesLimited,atLevel22,HopewellCentre,183Queen’s
Road East, Hong Kong from 9:00 a.m. to 1:00 p.m. on Wednesday, 30 May 2018 or any other day as
announcedbyusasthedateofdespatchofSharecertificates/refundcheques.
Individuals who are eligible for personal collection must not authorise any other person(s) to make
collection on their behalf. Corporate applicants which opt for personal collection must attend by their
authorisedrepresentative(s)bearingaletterofauthorisationfromsuchcorporation(s)stampedwiththe
corporation’schop.Bothindividualsandauthorizedrepresentatives(ifapplicable)mustproduce,atthe
timeofcollection,evidenceofidentityacceptabletoourHongKongBranchShareRegistrar.
7. Applicants for 1,000,000 Public Offer Shares or more on YELLOW Application Forms may collect their
refund cheques, if any, in person but may not collect their Share certificates personally which will be
deposited into CCASS for the credit of their designated CCASS Participants’ stock accounts or CCASS
InvestorParticipants’stockaccounts,asappropriated.Theproceduresforcollectionofrefundcheques
for YELLOW Application Form applicants are the same as those for WHITE Application Form
applicants.
– iii –
EXPECTED TIMETABLE
8. Uncollected Share certificates and refund cheques (if any) will be despatched by ordinary post at the
applicant’sownrisktotheaddressspecifiedintherelevantApplicationForm.Forfurtherinformation,
applicants should refer to the section headed “How to apply for Public Offer Shares — 13.
Despatch/collectionofsharecertificatesandrefundmonies”ofthisprospectus.
9. Refund cheques will be despatched in respect of wholly or partially unsuccessful applications and in
respectofsuccessfulapplicationsifthefinalOfferPriceislessthanthemaximumOfferPriceofHK$0.35
perOfferShare.
10. Share certificates will only become valid certificates of title provided that the Share Offer has become
unconditional in all respects and neither of the Underwriting Agreements has been terminated in
accordancewithitsterms.InvestorswhotradeSharesonthebasisofpubliclyavailableallocationdetails
priortothereceiptoftheirSharecertificatesorpriortotheSharecertificatesbecomingvalidcertificates
oftitledosoentirelyattheirownrisk.
In the event of any change to the above expected timetable after the date of this
prospectus, an announcement will be made on the Stock Exchange’s website at
www.hkexnews.hkandourCompany’swebsiteatamusegroupholding.comaccordingly.
AllSharecertificateswillonlybecomevalidcertificatesoftitleoftheSharesprovidedthat
the Share Offer has become unconditional in all respects and the Underwriting
Agreements have not been terminated in accordance with its terms at or before 8:00 a.m.
(Hong Kong time) on the Listing Date.
For further details of the structure and conditions of the Share Offer, you should
refer to the section headed “Structure and conditions of the Share Offer” of this
prospectus.
– iv –
CONTENTS
You should rely only on the information contained in this prospectus to make your
investment decision. Our Company has not authorised anyone to provide you with
information that is different from what is contained in this prospectus. Any information or
representationnotcontainedormadeinthisprospectusmustnotbereliedonbyyouashaving
been authorised by our Company, the Sponsor, the Joint Global Coordinators, the Joint
Bookrunners,theJointLeadManagers,theCo-LeadManagers,theUnderwriters,anyoftheir
respective directors, affiliates, employees or representatives or any other person or party
involved in the Share Offer.
Page
CHARACTERISTICS OF GEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
EXPECTED TIMETABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii
CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
DEFINITIONS AND GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
FORWARD-LOOKING STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
WAIVER FROM STRICT COMPLIANCE WITH THE GEM LISTING RULES
AND EXEMPTION FROM STRICT COMPLIANCE WITH THE COMPANIES
(WINDING UP AND MISCELLANEOUS PROVISIONS) ORDINANCE . . . . . 41
INFORMATION ABOUT THIS PROSPECTUS AND THE SHARE OFFER . . . . . 44
DIRECTORS AND PARTIES INVOLVED IN THE SHARE OFFER . . . . . . . . . . . . 49
CORPORATE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
INDUSTRY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
REGULATORY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
HISTORY, REORGANISATION AND CORPORATE STRUCTURE . . . . . . . . . . . 89
BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
DIRECTORS AND SENIOR MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
RELATIONSHIP WITH OUR CONTROLLING SHAREHOLDERS . . . . . . . . . . . . 221
– v –
CONTENTS
Page
SUBSTANTIAL SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
SHARE CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
FUTURE PLANS AND USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
UNDERWRITING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
STRUCTURE AND CONDITIONS OF THE SHARE OFFER . . . . . . . . . . . . . . . . . 305
HOW TO APPLY FOR PUBLIC OFFER SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . 314
APPENDIX I – ACCOUNTANTS’REPORT . . . . . . . . . . . . . . . . . . . . . . . . I-1
APPENDIX II – UNAUDITED PRO FORMA FINANCIAL
INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1
APPENDIX III – PROFIT ESTIMATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1
APPENDIX IV – PROPERTY VALUATION REPORT . . . . . . . . . . . . . . . . . . IV-1
APPENDIX V – SUMMARY OF THE CONSTITUTION OF
THE COMPANY AND CAYMAN ISLANDS
COMPANY LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-1
APPENDIX VI – STATUTORY AND GENERAL INFORMATION . . . . . . . VI-1
APPENDIX VII – DOCUMENTS DELIVERED TO
THE REGISTRAR OF COMPANIES
AND AVAILABLE FOR INSPECTION . . . . . . . . . . . . . . VII-1
– vi –
SUMMARY
This summary aims to give you an overview of the information contained in this
prospectus. As this is a summary, it does not contain all the information that may be
importanttoyou.Youshouldreadthisprospectusinitsentiretybeforeyoudecidetoinvestin
the Offer Shares.
Therearerisksassociatedwithanyinvestment.Someoftheparticularrisksininvesting
in the Offer Shares are set out in the section headed “Risk factors” in this prospectus. You
should read that section carefully before you decide to invest in the Offer Shares.
Various expressions used in this summary are defined in the section headed
“Definitions and glossary” in this prospectus.
BUSINESS OVERVIEW
We are a Hong Kong-based toy company which carries out design, marketing,
distributionandretailsalesoftoysandrelatedproducts.Ourproductportfolioduringthe
Track Record Period included (i) a variety of premium and general class figures based on
popular third party owned ACG characters; and (ii) other related products such as pens
and hair ties. Our Group’s revenue is derived from sales of (i) ODM toys produced
according to our customers’ specifications and requirements; (ii) imported toys which
were sourced from overseas licensees; and (iii) our own licensed toys developed by us
based on license rights obtained from various licensors of US entertainment and toy
brands. OurACG figures, primarily targeted at adult consumers, could generally pose in
various positions and gestures with movable joints and accessories.
Founded in September 2004 by our co-founder and Chairman, Mr. Li, our Group
commenced to design and manufacture toys for Wing Co., Ltd. (being a member of our
largest customer group, namely Customer Group A, during the Track Record Period) on
ODM basis since 2005. Our online store, “D4TOYS.COM”, was set up in 2012. In the same
year, we started to engage in distribution of imported toys mainly by sourcing quality
ACG figures from overseas toy licensees for resale. In October 2013, we started to cooperate
with licensor of a renowned US entertainment brand company (namely Licensor A) and
developed our own licensed figures based on a popular US superhero ACG character. We
distributed our imported toys and own licensed toys mainly through our local and overseas
distributorsinthePRC,theUS,Japan,HongKong,TaiwanandSingapore.Wealsoestablished
ourflagshipstore“千值殿/SEN-TI-DEN”,in Hong Kong in 2015.
Sales of ODM toys
Our Group provides ODM services to customers ranging from preparation of
product design, mould design and development, production management for prototype,
product sample and final product, and provision of fine-tuning advice on product
features.
As the preliminary specifications provided to us by customers are generally
elementary product ideas or basic descriptions of the expected project features, our
in-house and development team would assist our customers in evaluating the feasibility
of such ideas and product features. Our Directors believe that our product design and
development services are crucial in transforming our customers’ product concepts or
ideasintodesignlayoutandprototype.Inviewof(i)themarketshareofourGroupinthe
ACG figure toy ODM service market in Hong Kong; and (ii) our established relationship
with Customer Group A since 2005, our Directors believe that this kind of one-stop
solutions could not be easily replicated by our competitors.
Distribution of imported toys
During the Track Record Period, we have purchased imported toys from overseas
licensees mainly based in Japan and the US. Our in-house design and development team
identifiessuitabletargetofimportedtoysfromoverseaslicenseesandevaluatethemarket
response in our intended territories for distribution.
Based on our selection, we may discuss with licensees of the imported toys on
potential distributorship arrangement. For further details, please refer to the paragraph
headed “Business — Suppliers — Principal terms of engagement” in this prospectus.
– 1 –
SUMMARY
In some cases, if so required by the licensee of toys, we would obtain license rights
in respect of certain additional territories in which we intended to distribute the relevant
imported toys. For further details, please refer to the paragraph headed “Business —
Descriptionofbusinessoperations—II.Distributionofimportedtoys”inthisprospectus.
Sales of own licensed toys
Since 2013, our Group started to develop our own licensed toys based on license
rightsobtainedfromvariouslicensorofUSentertainmentandtoybrands.AsattheLatest
Practicable Date, we had the following licensing arrangements with our licensors:
• Licensor A: the license rights to develop (i) figures based on over 100 ACG
charactersfeaturinginaclassicsuperherocomicseries;and(ii)mini-toysand
polygon figures (多邊形公仔) based on ACG characters featuring in various
animation movie series.
• Licensor B: the license rights to develop figures and other products such as
pens, toy cars and key rings based on ACG characters featuring in (i) an
animated television series; and (ii) a superhero-themed comic book series.
• Licensor C: the license rights to develop figures based on ACG characters
featuring in a robot-themed comic series.
For further information of our licensors and our licensing arrangements with them,
please refer to the paragraph headed “Business — Description of business operations —
III. Sale of own licensed toys” in this prospectus.
Brands of our own licensed toys
During the Track Record Period, we have applied the “SENTINEL/千值練”, “TOPI”
and “FLAME TOYS” brands in developing our own licensed toys.
Our Directors are aware that Sentinel Japan has applied the “SENTINEL/千值練”
brand for the development, marketing and distribution of its licensed toys in Japan. Our
Directors consider that our business model is sustainable despite the common use of the
“SENTINEL/千值練” brand by our Group and Sentinel Japan in development and sales of
licensed products, as discussed in the paragraph headed “Business — Description of
business operations — III. Sale of own licensed toys — The brands of our own licensed
toys” in this prospectus.
Our product category
Typically, we classify both our ODM toys and imported toys into two main
categories, namely (i) premium toys; and (ii) general class toys.
Our premium toys principally consist of ACG figures with articular designs and
largenumberofmovablejointsandcomponents,andthereforetheynormallycommanda
relatively higher market selling price. Our general class toys generally comprise (i) ACG
figures with limited number of moveable joints and components; and (ii) other related
miscellaneousproductsassuchpensandhairties.OurDirectorsconsiderthatourgeneral
class toys are targeted at mass market consumers, and therefore they normally command
a more affordable market selling price.
During the Track Record Period, our own licensed toys developed under the
“SENTINEL/千值練” brand included (i) a figures series based on a US superhero ACG
character under a previous license agreement with Licensor A ended on 31 December
2016,whichwasrenewedforatermcommencedfrom1January2017to31December2018;
and (ii) a polygon figures (多邊形公仔) series based on a range of classic animation
characters developed under a license agreement with Licensor A ended on 30 June 2017,
which was renewed for a term commenced from 1 July 2017 to 30 June 2018.
– 2 –