The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on April 14, Shenghui Cleaning Group Holdings Co., Ltd. submitted a listing application to the main board of the Hong Kong Stock Exchange, and Changxiong Securities Co., Ltd. was its sole sponsor.
According to the prospectus, Shenghui Cleaning Group Holdings Co., Ltd. is a comprehensive cleaning service solution provider, mainly providing property cleaning services, and has more than 20 years of experience in the industry. According to industry reports, the company ranked second among environmental cleaning and maintenance service providers in Guangdong Province in 2019 in terms of (i) property cleaning revenue calculation; and (ii) commercial property cleaning revenue calculation. The company provides various environmental cleaning and maintenance services, mainly including (i) providing property cleaning services for various types of commercial, public and residential properties, (ii) cleaning of public spaces in streets, public squares and other public places, and (iii) providing other cleaning services such as river cleaning.
The company is based in Guangzhou City, Guangdong Province, and undertakes projects all over China. During the track record period, projects were carried out in 15 provincial regions in China, including (among others) Guangdong, Hainan, Guangxi, Hubei, Fujian, etc. During the track record period, most of the revenue came from projects in Guangdong Province. Company clients include government departments and agencies, state-owned enterprises, companies listed on the Stock Exchange or other major stock exchanges (or their subsidiaries), and private companies.
All of the company's revenue comes from providing environmental cleaning and maintenance services. As of 2018, 2019 and the year ending December 31, 2020, revenue was approximately RMB 341.3 million, RMB 390.1 million and RMB 465.7 million respectively. Among them, revenue from property cleaning services accounted for about 89.5%, 93.5% and 96.0% of total revenue, respectively. In the same period, net profit was approximately RMB 28.707 million, RMB 2027 million, and RMB 31,312 million respectively.
According to the prospectus, the company's main risks are as follows: the company generally obtains major contracts from customers through competitive procedures, and there is no guarantee that its customers will award them new contracts in the future or that they will be able to obtain contracts on commercially attractive terms; the company's projects face the risk of cost overruns, reduced scope of services and early termination; the company's business operations are labor-intensive; the company's profitability depends on its ability to control operating costs.