Advised by King & Wood Mallesons (KWM), YTO Express Co., Ltd. (YTO Express, stock code: 600233) completed its back-door listing by acquiring Dalian Dayang Trands Co., Ltd. (Dayang Trands, 600233.SH) on 20 October 2016 to become the first listed company in China’s express industry. In the transaction, the major asset restructuring included the sale of major assets, assets purchase via shares issuance and fund raising via shares issuance. At the close of the market on 19 October, 2016, YTO Express’s market capitalization reached approximately RMB102 billion, making it rank among the few non-state-owned companies with over RMB100 billion of market capitalization in the A-share market.

YTO Express is one of the strongest domestic express enterprises in terms of core competencies and comprehensive strengths. In the transaction, Dayang Trands sold all its assets and liabilities as of the valuation date for a total of RMB1.234 billion to Jiaolong Group and Yunfeng Xinchuang; YTO Express Co., Ltd. fixed its price at RMB17.5 billion. Meanwhile Dayang Trands issued a total of 2,266,839,378 shares to 9 shareholders of YTO Express Co., Ltd., including Jiaolong Group, Ali Venture Capital, Yunfeng Xinchuang, Yu Huijiao, Zhang Xiaojuan, Yuan Xiang Investment, Yuan Xin Investment, Yuan Ke Investment and Yuan Yue Investment, to buy the 100% shares of YTO Express Co., Ltd. held by them. At the same time, Dayang Trands issued a total of 224,390,243 shares to 7 parties, including Feng Heng Investment, Ali Venture Capital, Yuan Ding Investment, Guang Rui Investment, Yu Huijiao, Zhang Xiaojuan, Qi Xiao Investment, raising a total of 2.3 billion yuan.

KWM acted as legal counsel on the major asset restructuring, and participated in the whole process and successfully addressed many legal issues in the transaction, winning high praise from the client and other advisors. The project was led by partners Zhang Yongliang, Song Yanyan and Ye Guojun. Partners Zhou Ning, Bill Ye and Jiang Yifeng also provided strong support.

Zhang Yongliang commented, “We’re pleased to have advised YTO Express on its backdoor listing in the A-share market as a leader in the express industry. As China's express industry is entering a phase of explosive growth, we expect that more clients in the industry will aim at the capital markets in the future. As one of the leading law firms in securities and capital markets, KWM is looking forward to helping more clients achieve their commercial goals.”