CMS Hasche Sigle advises on IPO of Joyou AG

Frankfurt – Joyou AG of China is expected to be admitted to its first listing on the strictly regulated Prime Standard of Frankfurt Stock Exchange on 30 March 2010. The 8,050,000 shares were allotted at EUR 13 each, with full use being made of the greenshoe option. Gross flotation proceeds are around EUR 105 million.

CMS Hasche Sigle advised Joyou AG on the IPO as issuer’s counsel via an international team led by Philipp Melzer (Lead Partner), Dr Henrik Drinkuth and Dr Andreas Zanner, working closely with experts from the Shanghai office led by Dr Ulrike Glück. This consolidates the firm's leading position in supporting Chinese companies seeking to list on Deutsche Börse. CMS previously provided support for all the major flotations of Chinese companies as issuer's counsel, advising ZhongDe Waste Technology AG and Asian Bamboo AG in 2007, followed by Vtion Wireless Technology AG in 2009.

Joyou designs, produces and sells taps and other sanitary products under its own "Joyou" brand in China. The company also operates in the US, Europe and Asia as a manufacturer of Original Equipment Manufacturing/Original Design Manufacturing products for international sanitaryware firms, wholesalers and trading companies. In terms of sales, Joyou is one of the leading brand-name manufacturers of taps for bathroom and kitchen in China, with a market presence dating back more than 20 years. Joyou's total sales rose from EUR 44.9 million in 2007 to 135 million in 2008, then reached EUR 172.3 million in 2009. This represents an average annual growth rate of some 95% over the period. Joyou's operating result (EBIT) rose by an average of approximately 97% a year, from EUR 10 million in 2007 to EUR 25 million in 2008 and EUR 39 million in 2009.

Macquarie Capital (Europe) Limited and China International Capital Corporation Hong Kong Securities Limited (CICC) are acting as joint lead managers. Co-lead managers are WestLB AG and DZ BANK AG.

Advisers CMS Hasche Sigle:
Philipp Melzer (Lead Partner)
Dr Andreas Zanner
Dr Jochen Schlotter
Peter Holst
Ning Zhang
Stephan Parrandier
Dr Stefan Ueding (all Capital Markets)
Dr Thomas Link
Dr Annett Kenk (both Tax)
Dr Henrik Drinkuth (Stock Corporation Law and Capital Markets)
Dr Rainer Herzog (Stock Corporation Law)
Dr Ulrike Glück
Kevin Wang
Ann Chen
Jeanette Yu
Gloria Yu
Jin Li
Charlie Sun (Chinese Law)