DGAP-News: Decheng Technology AG

DGAP-News: Decheng Technology AG: 729,857 shares placed

DGAP-News: Decheng Technology AG / Key word(s): IPO Decheng Technology AG: 729,857 shares placed

21.06.2016 / 07:15 The issuer is solely responsible for the content of this announcement.

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CORPORATE NEWS June 21, 2016

Decheng Technology AG: 729,857 shares placed

- First trading day on the Frankfurt Stock Exchange (General Standard) on June 28, 2016

- Issue volume of more than EUR 2.5 million realized

- Positive response despite difficult market conditions

Cologne, June 21, 2016. Decheng Technology AG (ISIN: DE000A1YDDM9; German Securities Identification Number (WKN): A1YDDM; ticker symbol: 333), a fast growing and highly profitable Chinese manufacturer of polyurethane resin and additives that are used to enhance the product properties of textiles and leather, has closed the subscription period for its shares as scheduled. Due to the difficult market conditions for Chinese companies in general, 729,857 of the 3 million offered shares in total could be placed with investors at a price of EUR 3.50 per share. The gross issuance volume thusly amounts to EUR 2,554,499.50.

Positive response despite difficult market conditions The subscription period was characterized by difficult market conditions, which, amongst other reasons, are to be partially attributed to the discussion about the United Kingdom leaving the European Union and the consequences thereof for the capital markets. In addition, the not very successful IPOs of Chinese companies in the past have led to a general distrust among investors towards Chinese IPO candidates in general. Decheng Technology AG's business model, prospects and products met with positive response nevertheless.

Xiaofang Zhu, CEO of Decheng Technology AG: "We have to accept that the reservations regarding Chinese companies are still strong. For me, the fact that we met with positive response from investors and industry representatives nonetheless is proof of the credibility and soundness of our business model. Right from the beginning our focus is to be listed on the Frankfurt Stock Exchange and we hope to work with a European chemical company in the near future. We believe in the German stock market and want to win over skeptical investors in the future through sustainable growth and a capital market-friendly business conduct."

First trading day The first trading day of the Decheng Technology AG shares in the General Standard Segment of the Frankfurt Stock Exchange is expected to take place on Tuesday, June 28, 2016.

Initial Public Offering During the subscription period 729,857 shares of Decheng Technology AG could be placed. The free float amounts to 20.21 per cent. After the IPO the nominal capital of Decheng Technology AG amounts to EUR 30,729,857.00 divided into 30,729,857 shares. Thus the derived company value at the time of the IPO is EUR 107,554,499.50.

Use of proceeds As already announced, the Company will use 50 per cent of the proceeds from the IPO to invest into R&D with the goal to further develop existing products as well as to fund basic research and the development of new products. In this way the Company intends to secure a technological advantage and to improve its competitiveness. 20 per cent of the proceeds will be allocated to marketing, the remaining 30 per cent to working capital.

The issue was accompanied by ACON Actienbank AG, Munich, Germany, as Global Coordinator and Lead Manager.

About Decheng Technology AG Decheng Technology AG is occupied with the research, development and the production of polyurethane resin and additives that enhance and improve the product features of textiles and leather. The production site is located in Quangang, Fujian Province, People's Republic of China. In fiscal year 2015, the Company achieved sales of EUR 68.8 million, a net profit (after tax) of EUR 17.9 million and employed 123 persons. The shares of Decheng Technology AG will be listed in the General Standard Segment of the Frankfurt Stock Exchange starting June 28, 2016.

Investor Relations Contact VPC Group Bleichstraße 64-66 60313 Frankfurt am Main Germany +49 69 175371963 ir@dechengtechnology.com

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21.06.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

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Language: English Company: Decheng Technology AG Martin-Luther-Platz 26 40212 Düsseldorf Germany Phone: +49 (0)211-78179033 E-mail: contact@dechengtechnology.com Internet: www.dechengtechnology.com ISIN: DE000A1YDDM9 WKN: A1YDDM Listed: Regulated Market in Frankfurt (General Standard) Notierung vorgesehen / Intended to be listed End of News DGAP News Service ---------------------------------------------------------------------------

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