Background & Challenges 

In early July 2024, a Henan-based company successfully listed on the Hong Kong Stock Exchange, becoming a model of internationalization for local enterprises. During the final round of cornerstone investment in late June, the investor needed to complete the ODI (Overseas Direct Investment) filing and approval process within a very short timeframe to ensure timely outbound fund transfer and participation in the IPO subscription.

• Time Pressure: Only three weeks remained before the listing, requiring a swift completion of the ODI filing.
• Large Investment Amount: The total investment reached USD 40 million, involving a complex approval process.
• Regional Uniqueness: This case marked the first ODI filing under a red-chip structure in the city, with no prior local precedents to refer to.

Solution

Leveraging its extensive experience in ODI filings and strong cross-border investment service capabilities, Encor Group provided the investor with a comprehensive one-stop solution:

• Rapid Response & Strategic Planning: Formed a dedicated team to gain deep insights into the red-chip structure and investment details, crafting an efficient filing strategy.
• End-to-End Support: Assisted in the preparation of filing materials—including the investment agreement, proof of funds, and overseas investment plan—to ensure regulatory compliance.
• Efficient Communication & Coordination: Maintained close contact with the local Department of Commerce, NDRC, and SAFE to accelerate the approval process.
• Risk Control: Identified potential issues in advance and offered compliance advice to ensure a smooth approval outcome.

Results & Value

• Setting a Precedent: This case became the first ODI filing under a red-chip structure in the city, serving as a reference for local companies pursuing internationalization.
• Efficient Filing Completion: Successfully completed the ODI filing within three weeks, ensuring the investor’s timely participation in the IPO subscription.
• Client Satisfaction: The investor highly recognized Encor Group’s professionalism and efficiency, laying a strong foundation for future collaboration.