On April 24, 2022, Shenghui Cleaness Group Holdings Limited (hereinafter referred to as “Shenghui Cleaning”) from Guangzhou, Guangdong, submitted a prospectus to the Hong Kong Stock Exchange to be listed on the Hong Kong Main Board. This is another submission after its first submission expired on April 14, 2021.
Shenghui Cleaning's prospectus link:
https://www1.hkexnews.hk/app/sehk/2022/104391/documents/sehk22042400029_c.pdf
Main business
Established in 2000, Shenghui Cleaning, as a mature environmental cleaning and maintenance service provider in China, provides a wide range of services to more than 700 customers, and its business covers 14 provincial regions in China.
Shenghui Clean's main clients include Fortune Global 500 Chinese real estate developers, Fortune Global 500 real estate consulting firms, major real estate developers and property management companies in Asia and China, government departments in Guangdong Province, and Chinese airport management companies.
According to Frost & Sullivan's report, in 2019, Shenghui Cleaning ranked second among environmental cleaning and maintenance service providers in Guangdong Province in terms of property cleaning service revenue, with a market share of about 5.0%; in terms of commercial property cleaning revenue, it ranked second in terms of commercial property cleaning revenue, with a market share of about 7.5%.
All of Shenghui Cleaning's revenue comes from providing environmental cleaning and maintenance services. Its service capabilities include providing basic cleaning and maintenance services, garbage collection and transportation services, waste collection and transportation services, water tank cleaning services and ancillary services. It also provides specialized cleaning services such as stone cleaning and restoration, and aerial cleaning using mobile platforms.
Shareholder structure
According to the prospectus, in Shenghui Clean's shareholder structure before listing, the controlling shareholders were Mr. Li Chenghua and Mr. Chen Liming. They held 48.5% and 48.5% of the shares respectively. They confirmed a unanimous vote by signing the controlling shareholders, which were a group of controlling shareholders, holding a total of 97% of the shares.
Mr. Tan Rijian holds 3% of the shares.
Financial data
According to the prospectus, in the past three fiscal years of 2019, 2020 and 2021, Shenghui Cleaning's operating income was RMB 390 million, 466 million and RMB 564 million respectively; the corresponding net profit was RMB 20.27 million, 31.312 million, and RMB 39.921 million, respectively.
intermediaries
Shenghui Clean's intermediary team for this IPO mainly includes: Cinda International is its sole sponsor; PricewaterhouseCoopers is its auditor; Guangdong Huashang and Sishting are their company's Chinese lawyers and corporate Hong Kong lawyers respectively; Jing Tian Gongcheng and Qiu Huanfa are their brokerage Chinese lawyers and brokerage Hong Kong lawyers respectively; Roma International is its property valuer; and Frost Sullivan is its industry advisor.