CSRC Demands Hugee Clarify Shareholding Structure for Hong Kong IPO

On April 11, the China Securities Regulatory Commission (CSRC) issued a notice requiring seven companies to submit additional materials for their overseas listings. Among these, Hugee, a prominent oral materials manufacturer in China, was directed to provide further details on its shareholding structure. The CSRC's International Department outlined specific areas that Hugee must clarify, including the pricing and tax implications of share transfers involving Longhua Limited and Shandong Hugee, as well as the acquisition of Shandong Hugee's shares by Hugee Investment.

The CSRC also requested that Hugee verify the backgrounds of six new shareholders, including Huichu Yuanjing, and ensure compliance with foreign exchange regulations for domestic individuals holding shares through offshore platforms. Hugee had previously filed for a listing on the Hong Kong Stock Exchange's main board in February, with CICC and DBS serving as joint sponsors.

Hugee offers a diverse range of products, including clinical, technical, and digital oral care solutions, catering to various dental specialties. The company's comprehensive product portfolio meets the clinical needs of dental institutions and laboratories, covering areas such as restorative dentistry, implantology, endodontics, orthodontics, and pediatric dentistry. Hugee is recognized as one of the largest manufacturers of oral impression materials and clinical materials in China, with the most CE-marked or FDA-approved clinical materials among domestic producers.

This development underscores the regulatory scrutiny that Chinese companies face when seeking overseas listings. The CSRC's requirements highlight the importance of transparency and compliance in shareholding structures and foreign exchange regulations. Hugee's response to these requests will be crucial in determining the success of its IPO plans.