Deloitte China assists listing of ZG Group on SEHK via a de-SPAC transaction

Deloitte China successfully assisted the listing of ZG Group (new stock code: 06676.HK), a digital platform for steel transactions, on the Main Board of the Stock Exchange of Hong Kong ("SEHK") through a de-SPAC transaction with Aquila Acquisition Corporation (old stock code: 07836.HK, "Aquila"), a special purpose acquisition company (SPAC), on 10 March 2025. This is the 1st company to receive China Securities Regulatory Commission ("CSRC") approval for listing on SEHK via a de-SPAC transaction and the 2nd de-SPAC company served by Deloitte China to list on SEHK.

ZG Group becoming the 1st Chinese mainland enterprise to list in Hong Kong via a de-SPAC transaction opens an exciting chapter for Chinese mainland companies to leverage this innovative approach to access the Hong Kong capital market and empower them to integrate with the international capital market.

Since the launch of the special purpose acquisition company (SPAC) listing regime in Hong Kong in 2022, two de-SPAC transactions, including Synagistics (stock code: 02562.HK) that commenced trading of its shares on 30 October 2024, have been completed to-date. Deloitte China was the reporting accountants of both transactions, fully demonstrating its strong, unique capabilities in serving and advising this pioneering listing vehicle.

(From left) Elaine Chen, Helen Zhang and Clara Xu, senior auditors of Deloitte China's Audit & Assurance; Roger Luo, Deloitte China's Audit Engagement Partner for ZG Group; Audit Engagement Partner and Capital Market Services Group's (CMSG) Eastern Region Offering Services Partner, Stephen Hu; ZG Group's Executive Director, Zhou Min; David Leung, Deloitte China's Lead Client Service partner for ZG Group; Jimmy Yang and Joshua Huang, A&A managers; Maggie Shun, A&A senior manager; and Greg Xia, A&A manager attend ZG Group's listing celebration luncheon.

(From left) Stephen Hu; Ernest Lee, Deloitte China Technical partner and a member of the Listing Committee of the SEHK; Dick Kay, CMSG's National Offering leader of Deloitte China; Zhou Min; ZG's Co-Founder, Chairman and CEO, Wang Dong; David Leung, Roger Luo; Meng Long, ZG Group's Secretary of the Board and Assistant to the CEO; and Maggie Shun attend ZG Group's listing ceremony

(From left) Roger Luo, Stephen Hu, Dick Kay, Wang Dong, David Leung and Maggie Shun attend ZG Group's listing ceremony

Client overview

Aquila is a SPAC established for merging with technology-enabled companies in new economy sectors in Asia, especially those that are based in China.

ZG Group operates a digital platform for third-party steel transactions through connecting key participants in the steel transactions sector. Currently, it offers a one-stop integrated suite of B2B services covering the entire value chain of steel transactions, including online steel transactions, logistics, warehousing and processing, SaaS (software as a service) products, and big data analysis. ZG Group continues to strengthen its presence in China while actively expanding its international operations, advancing its globalization strategy across key markets such as the United Arab Emirates, South Korea, and Malaysia.

Source: Aquila’s circular published on 2 February 2025

Deloitte’s role

Deloitte China was selected as reporting accountants of this de-SPAC transaction in 2023. Leveraging its extensive experience in the capital market and exceptional service capabilities, Deloitte China met a highly challenging timetable, successfully assisting ZG Group to list on the Main Board of SEHK. This demonstrates Deloitte China's commitment to its service philosophy of "diligence and excellence".

Deloitte China congratulates ZG Group on its listing on SEHK via a de-SPAC transaction. We will continue to provide high quality professional services and outstanding resources integration to assist more clients to take one-step ahead in today's increasingly competitive and complex business environment.