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Smartkarma AI Primers

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  <li>
<a href="https://smartkarma.com/entities/jy-grandmark-holdings-ltd">JY Grandmark</a> is in severe financial distress, evidenced by significant net losses, negative margins, and a precarious liquidity position with substantial overdue borrowings and cross-defaults.</li>
  <li>The company's operational performance has collapsed, with revenue plummeting and contracted sales declining sharply, reflecting both company-specific issues and the protracted downturn in China's property market.</li>
  <li>Extreme uncertainty surrounds the company's ability to continue as a going concern, with its auditors issuing a disclaimer of opinion. The stock's nominal price reflects a high probability of insolvency or significant dilution from debt restructuring.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
JY Grandmark is in severe financial distress, evidenced by significant net losses, negative margins, and a precarious liquidity position with substantial overdue borrowings and cross-defaults.
  The company's operational performance has collapsed, with revenue plummeting and contracted sales declining sharply, reflecting both company-specific issues and the protracted downturn in China's property market.
  Extreme uncertainty surrounds the company's ability to continue as a going concern, with its auditors issuing a disclaimer of opinion. The stock's nominal price reflects a high probability of insolvency or significant dilution from debt restructuring.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: JY Grandmark (2231 HK) - Aug 2026

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

Hygeia Healthcare / Equity Capital Markets

<div>
<p>For primary listings in Hong Kong, there are standard rules as to the lock-up duration. There are exceptions - lock-ups can be entered into and negotiated with underwriters, as is often the case for secondary listings.</p>
<p>There are other quirks such as specific lock-ups with respect to share incentive schemes, such as in <a href="https://www.smartkarma.com/entities/shenzhen-hepalink-pharmaceutical-h" target="_blank" data-smartkarma-citation="entities:29142:1" rel="noopener">Shenzhen HepaLink Pharmaceutical (H) (9989 HK)</a>, which have their own unique lock-up period - although in this case, the % of shares out (0.31%) affected  is largely immaterial. </p>
</div>
<div>
<p>According to <a href="https://en-rules.hkex.com.hk/rulebook/1007-0" target="_blank" rel="noopener">Main Board Rule 10.07(1)</a> (or <a href="https://en-rules.hkex.com.hk/rulebook/1316a" target="_blank" rel="noopener">GEM rule 13.16A(1)</a>), if a person/group of persons is/are listed as the controlling shareholder(s) of the issuer's listing application, they must adhere to a 6-month lock-up from the date of listing.</p>
</div>
<div>
<p>For cornerstone investors, the following is often stated in the share offer document:</p>
</div>
<div>
<blockquote>
<p>Each of the Cornerstone Investors has agreed that it will not, whether directly or indirectly, at any time during the period of six months from and including the Listing Date (the “Lock-up Period”), dispose of any of the Offer Shares they have purchased pursuant to the relevant Cornerstone Investment Agreements, save for certain limited circumstances ... <br>Hepalink's <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0624/2020062400097.pdf" target="_blank" rel="noopener">Global Offering Doc</a> (page 403)</p>
</blockquote>
</div>
<div>
<p>Every week in my <a href="https://www.smartkarma.com/compose/insight/46538/Last%20Week%20in%20Event%20SPACE:%20Japan%20Post,%20JD.com,%20Toyota,%20NTT,%20Jardines,%20Indices/Exec.%20Orders,%20Tianneng.%20Read%20more:%20https:/skr.ma/vhr6W" target="_blank" rel="noopener">Event SPACE</a> wrap, I flag large moves (~10%) in CCASS holdings over the past week or so, moves that are often outside normal market transactions.  These may be indicative of share pledges.  Or potential takeovers. Or simply help understand volume swings. </p>
</div>
<div>
<p>Large movement(s) concerning recently listed companies are likely lock-up related. </p>
</div>
<div>
<p>This monthly insight looks at companies that have been listed for around six months, as a guide to when insiders/controlling shareholders are permitted to sell, potentially creating an overhang which could depress prices.</p>
<p>I've also constructed a chart highlighting the performance of IPOs leading up to their lock-up, and compared this to the HSI index. The results are interesting. Spoiler - recent IPOs underperform. </p>
</div>
<div>
<p>A summary of Main Board listings in 2020 is also attached at the bottom of this insight.</p>
<p>More below the fold.</p>
</div>


For primary listings in Hong Kong, there are standard rules as to the lock-up duration. There are exceptions - lock-ups can be entered into and negotiated with underwriters, as is often the case for secondary listings.
There are other quirks such as specific lock-ups with respect to share incentive schemes, such as in Shenzhen HepaLink Pharmaceutical (H) (9989 HK), which have their own unique lock-up period - although in this case, the % of shares out (0.31%) affected  is largely immaterial. 


According to Main Board Rule 10.07(1) (or GEM rule 13.16A(1)), if a person/group of persons is/are listed as the controlling shareholder(s) of the issuer's listing application, they must adhere to a 6-month lock-up from the date of listing.


For cornerstone investors, the following is often stated in the share offer document:



Each of the Cornerstone Investors has agreed that it will not, whether directly or indirectly, at any time during the period of six months from and including the Listing Date (the “Lock-up Period”), dispose of any of the Offer Shares they have purchased pursuant to the relevant Cornerstone Investment Agreements, save for certain limited circumstances ...  Hepalink's Global Offering Doc (page 403)



Every week in my Event SPACE wrap, I flag large moves (~10%) in CCASS holdings over the past week or so, moves that are often outside normal market transactions.  These may be indicative of share pledges.  Or potential takeovers. Or simply help understand volume swings. 


Large movement(s) concerning recently listed companies are likely lock-up related. 


This monthly insight looks at companies that have been listed for around six months, as a guide to when insiders/controlling shareholders are permitted to sell, potentially creating an overhang which could depress prices.
I've also constructed a chart highlighting the performance of IPOs leading up to their lock-up, and compared this to the HSI index. The results are interesting. Spoiler - recent IPOs underperform. 


A summary of Main Board listings in 2020 is also attached at the bottom of this insight.
More below the fold.


Hong Kong IPOs: Lock-Up Expiries (December 2020 Edition)

Event-Driven

<p>The role of lock-ups in IPOs is, as one journal <a href="https://www.jstor.org/stable/1262724?seq=1" target="_blank" rel="noopener">put it</a>, a "<em>commitment device to alleviate moral hazard problems</em>".</p>
<p>Lock-ups can be entered into and negotiated with underwriters, as is the case for secondary listings for <a href="https://www.smartkarma.com/entities/netease" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (HK) (9618 HK)</a>, amongst others. For primary listings in Hong Kong, there are standard rules as to the lock-up duration.</p>
<p>According to <a href="https://en-rules.hkex.com.hk/rulebook/1007-0" target="_blank" rel="noopener">Main Board Rule 10.07(1)</a> (or <a href="https://en-rules.hkex.com.hk/rulebook/1316a" target="_blank" rel="noopener">GEM rule 13.16A(1)</a>), if a person/group of persons is/are listed as the controlling shareholder(s) of the issuer's listing application, shall not (apart from any offer of shares for sale discussed in the listing document):</p>
<ol>
<li>dispose of shares (nor enter into agreements) in a period commencing on the date by reference to which disclosure of the shareholding of the controlling shareholder is made in the listing document and ending on the date which is 6 months from the date of listing (the “<strong>First Six-month Period</strong>”); and</li>
<li>dispose of shares in the period of 6 months commencing on the date on which the First Six-month Period expires, if immediately following such disposal that person or group of persons would cease to be a controlling shareholder (the “<strong>Second Six-month Period</strong>”).</li>
</ol>
<p>An example of such wording can be found in Yadong's Group (1795 HK)'s (the most recent Main Board listing) "<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1117/9515120/2020111700040.pdf" target="_blank" rel="noopener"><em>Share Offer - Announcement of allotment results</em></a>".</p>
<p>For cornerstone investors, the following is often stated in the share offer document:</p>
<blockquote>
<p>Each of the Cornerstone Investors has agreed that it will not, whether directly or indirectly, at any time during the period of six months following the Listing Date, dispose of any of the Offer Shares it has purchased pursuant to the relevant Cornerstone Investment Agreement, save for certain limited circumstances ...</p>
</blockquote>
<p>Every week in my Event SPACE wrap, I flag large moves (~10%) in CCASS holdings over the past week or so, moves that are often outside normal market transactions.  These may be indicative of share pledges.  Or potential takeovers. Or simply help understand volume swings. </p>
<p>Large movement(s) concerning recently listed companies are <em>likely</em> lock-up related. </p>
<p>This insight looks at companies that have been listed for nearly six months or 12 months, as a guide to when insiders/controlling shareholders are permitted to sell, potentially depressing prices and creating an overhang.</p>
<p><em>A summary of Main Board listings in 2020 is attached at the bottom of this insight.</em></p>

The role of lock-ups in IPOs is, as one journal put it, a "commitment device to alleviate moral hazard problems".
Lock-ups can be entered into and negotiated with underwriters, as is the case for secondary listings for NetEase (9999 HK), JD.com (HK) (9618 HK), amongst others. For primary listings in Hong Kong, there are standard rules as to the lock-up duration.
According to Main Board Rule 10.07(1) (or GEM rule 13.16A(1)), if a person/group of persons is/are listed as the controlling shareholder(s) of the issuer's listing application, shall not (apart from any offer of shares for sale discussed in the listing document):

dispose of shares (nor enter into agreements) in a period commencing on the date by reference to which disclosure of the shareholding of the controlling shareholder is made in the listing document and ending on the date which is 6 months from the date of listing (the “First Six-month Period”); and
dispose of shares in the period of 6 months commencing on the date on which the First Six-month Period expires, if immediately following such disposal that person or group of persons would cease to be a controlling shareholder (the “Second Six-month Period”).

An example of such wording can be found in Yadong's Group (1795 HK)'s (the most recent Main Board listing) "Share Offer - Announcement of allotment results".
For cornerstone investors, the following is often stated in the share offer document:

Each of the Cornerstone Investors has agreed that it will not, whether directly or indirectly, at any time during the period of six months following the Listing Date, dispose of any of the Offer Shares it has purchased pursuant to the relevant Cornerstone Investment Agreement, save for certain limited circumstances ...

Every week in my Event SPACE wrap, I flag large moves (~10%) in CCASS holdings over the past week or so, moves that are often outside normal market transactions.  These may be indicative of share pledges.  Or potential takeovers. Or simply help understand volume swings. 
Large movement(s) concerning recently listed companies are likely lock-up related. 
This insight looks at companies that have been listed for nearly six months or 12 months, as a guide to when insiders/controlling shareholders are permitted to sell, potentially depressing prices and creating an overhang.
A summary of Main Board listings in 2020 is attached at the bottom of this insight.

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<p><a href="https://www.smartkarma.com/entities/huijing-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:28683:1" rel="noopener">Huijing Holdings Co Ltd (9968 HK)</a> raised US$195m at HK$1.93 per share, the bottom-end of its IPO price range. We have previously covered the IPO in:</p><ul><li>
<a href="https://www.smartkarma.com/insights/huijing-ipo-dongguan-focused-property-developer" target="_blank" data-smartkarma-citation="insights:35567" rel="noopener">Huijing (汇景控股) IPO - Dongguan-Focused Property Developer</a> </li></ul><p>In this insight, we will look at the IPO deal dynamics and updated valuation.</p>

Huijing Holdings Co Ltd (9968 HK) raised US$195m at HK$1.93 per share, the bottom-end of its IPO price range. We have previously covered the IPO in:
Huijing (汇景控股) IPO - Dongguan-Focused Property Developer In this insight, we will look at the IPO deal dynamics and updated valuation.

Huijing (汇景控股) Trading - Tiny Free-Float with Little Interest from Public

<p><a href="https://www.smartkarma.com/entities/jy-grandmark-holdings-ltd" target="_blank" data-smartkarma-citation="entities:28440:1" rel="noopener">JY Grandmark (2231 HK)</a> raised US$161m at HK$3.16 per share, just below the mid point of its IPO price range. We have previously covered the IPO in:</p><ul><li>
<a href="https://www.smartkarma.com/insights/jy-grandmark-ipo-new-player-but-probably-doesn-t-deserve-a-premium" target="_blank" data-smartkarma-citation="insights:34831" rel="noopener">JY Grandmark (景業名邦) IPO - New Player but Probably Doesn’t Deserve a Premium</a> </li></ul><p>In this insight, we will look at the IPO deal dynamics and updated valuation.</p>

JY Grandmark (2231 HK) raised US$161m at HK$3.16 per share, just below the mid point of its IPO price range. We have previously covered the IPO in:
JY Grandmark (景業名邦) IPO - New Player but Probably Doesn’t Deserve a Premium In this insight, we will look at the IPO deal dynamics and updated valuation.

JY Grandmark (景業名邦) Trading - Decent Demand but Liquidity Will Probably Be Subdued

China

JY Grandmark Holdings Limited offers real estate services. The Company provides real estate development, property management, property leasing, and other services. JY Grandmark Holdings provides its services throughout China.

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JY Grandmark (2231 HK)

Primer: JY Grandmark (2231 HK) - Aug 2026

JY Grandmark is in severe financial distress, evidenced by significant net losses, negative margins, and a precarious liquidity position with...

αSK Primers

Hong Kong IPOs: Lock-Up Expiries (December 2020 Edition)

There exist the "moral hazard" around the expiry of lock-up periods. In 2020, IPO's have on average underperformed the HSI heading into the lock...

David Blennerhassett

Hong Kong IPOs: Lock-Up Expiries

A look at companies that have been listed for nearly six/12 months, as a guide to when insiders/controlling shareholders are permitted to sell,...

David Blennerhassett

Huijing (汇景控股) Trading - Tiny Free-Float with Little Interest from Public

Huijing Holdings Co Ltd (9968 HK) raised US$195m at HK$1.93 per share, the bottom-end of its IPO price range. We have previously covered the IPO...

Zhen Zhou, Toh

JY Grandmark (景業名邦) Trading - Decent Demand but Liquidity Will Probably Be Subdued

JY Grandmark (2231 HK) raised US$161m at HK$3.16 per share, just below the mid point of its IPO price range. We have previously covered the IPO...

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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