The company is a leading provider of landscape planning services in China and Hong Kong. During the previous period and up to the latest practicable date, the company provided a wide range of landscape planning services, including landscape assessment, planning, design and other related query services, which have benefited more than 600 customers. Typical landscape design items will involve conceptual design, scheme design, initial design, construction documents and construction supervision and inspection. The company undertakes landscape projects, which can be divided into four categories: (I) hotel and hotel projects; (ii) infrastructure and public space projects; (iii) commercial and multi-purpose development projects; and (iv) residential development projects.

The company is in charge of

(1) projects with professional and international qualifications and experience: the company's projects are equipped with professional information and rich working experience issued by Chinese, Hong Kong and overseas institutions; (2) extensive brand knowledge: the company's Hong Kong financial subsidiary company was established in 1981 and the first Chinese shipping subsidiary company was established in 2004. (3) rich management experience: directors have rich work experience in Jingxing planning service bank; (4) effective and comprehensive staff management: the company's monthly staff meeting and seminar and continue to provide effective training; (5) the ability of the market to change: the company has the ability to undertake contracts and project types of projects. (6) secured customer base in China and Hong Kong: most of the company's revenue comes from regular customers, and most of the familiar customers have a relationship with the company for one to five years; (7) hold the information and ability to undertake government landscape design projects: the company has obtained Class B funding, so that the company can sign relevant documents for public investment.

Overview of the industry

From 2008 to 2013, the total revenue of Jingxing Planning Services increased from about HK $10.4 billion in 2008 to about HK $34.2 billion in 2013, with an annual growth rate of 26.9%. The increase in total income is mainly due to the strong increase in income from infrastructure and public space projects in China. For the year ended December 31, 2013, basic facilities and public space projects should account for HK $23.1 billion in total revenue, accounting for about 67.5% of the total revenue for that year.

The increase in income from infrastructure and public space projects is due to the Chinese government's policy of urbanization and urbanization in China. In 1992, the State Council of China promulgated the regulations on the urbanization of Chinese cities, which was the first piece of legislation regulating the management of China's landscape planning and service industry. It promotes the advanced technology of urban urbanization and urban urbanization, and establishes an information system to provide landscape design services. In November 2012, the Ministry of Housing and Urban Construction issued guidelines on promoting the healthy development of urban forestry, further requiring that by 2020, in accordance with the first-and second-level national standards stipulated in the urban forestry assessment standards, the urbanization rates of developed areas will be raised to 35% and 31%, respectively. In 2012, about 30% of China's cities reached the national standard. In order to meet China's legal standards, government expenditure related to insurance and transformation has increased in the past few years and is expected to continue to grow. In addition to favourable government policies, another driver is the increase in government spending related to city planning (which will include infrastructure and public space projects, municipal projects and travel infrastructure projects). The total government expenditure planned by relevant cities increased from about 146 billion Hong Kong dollars in 2008 to about 462 billion Hong Kong dollars in 2013, with an annual growth rate of about 25.9 percent.

The rapid development of China's residential real estate market and commercial real estate market has also become a market dynamic force for the continuous growth of service demand for economic construction. From 2008 to 2013, residential development projects have become the second largest collection type in landscape projects; from 2008 to 2013, revenue generated from commercial and multi-purpose development projects recorded a second-highest annual growth rate of 27.2%.

The income generated by housing development projects and commercial and multi-purpose development projects in the housing industry has increased. From 2008 to 2013, the total investment value of the residential property market increased at an annual compound growth rate of about 24.1%, while from 2008 to 2013, the total market investment value of the commercial real estate market increased at an annual compound growth rate of about 32.6%.

The Chinese government regulates the residential property market by curbing investment demand, and at the same time promotes the demand for end-of-life housing and supports related supply to cities with a total population of more than 10 million. As a result, the effect of real estate regulatory measures will be offset by rising demand for residential property, which is estimated to have a combined annual growth rate of 14.5% from 2014 to 2018. On the other hand, as the Chinese government's strict control policy on real estate does not apply to the commercial real estate market, it is expected that the total investment value of the commercial real estate market from 2014 to 2018 will increase at an estimated annual growth rate of about 21.3%. The increase will be offset by the increase in China's total domestic product and the higher return on investment in commercial property, which will also be shifted from residential to commercial property.

As mentioned above, the total revenue of the planning services business will increase from about HK $38.1 billion in 2014 to about HK $61.2 billion in 2018. During the period from 2014 to 2018, the main receiving project types are still residential development project base facilities and public space projects, while commercial and multi-purpose development projects are expected to record the highest annual growth rate of all other project types, with an estimated annual growth rate of 21.3% from 2014 to 2018, in line with the total increase in commercial real estate market investment in the same period.

Driven by the demand for China's landscape planning services, the landscape planning services are on the rise. From 2009 to 2010, the provision of landscape design services for tourism and hotel projects, infrastructure facilities and public space projects increased rapidly by about 44.7% and about 53.6%, respectively. This is mainly due to the economic stimulus measures taken by the Chinese government in response to the global financial crisis and economic downturn in 2008 and 2009.

Profit ability and duty number

Revenue increased by approximately HK $44600000 or 25.9% from approximately HK $172400000 for the year ended December 31, 2012 to approximately HK $217000000 for the year ended December 31, 2013. The increase is due to (I) the support of the improvement in market conditions in 2013 and the implementation of the Government's deregulation policy at the end of 2012; and (ii) the inclusion of general (Hong Kong) as total income net extra revenue in August 2012. As a result of the improvement in market conditions in 2013, the company entered into more contracts and the average total amount of new contracts entered into in 2013. as a result, the company's gross profit increased by approximately HK $34900000 or 41.4% from approximately HK $84400000 for the year ended December 31, 2012 to approximately HK $119300000 for the year ended December 31, 2013. With the relative low salary margin from 2012 to 2013 to 2011 to 2012, the company's gross profit margin increased from about 48.9% for the year ended December 31, 2012 to about 54.9% for the year ended December 31, 2013. Profit increased by approximately HK $11800000 or 45.6% from approximately HK $25900000 for the year ended December 31, 2012 to about HK $37800000 for the year ended December 31, 2013.

Collection purpose

Of the HK $88.88 million (calculated on the basis of HK $1.10 of the median number of shares sold), about 40% will be used to cover the planned expenditure of the company's related major services; about 30% will be used to cover the planned expenditure related to the establishment of new regional offices in China; and about 10% will be used to set up branch offices to expand the company's activities to other regions of China. About 10% will be used to increase the company's sales and advertising efforts through different channels, including mass media, exhibitions, activities and training programs of Jingjing equipment and service business, and about 10% will be used for external financing and other general corporate purposes.

Valuation

According to the IPO price HK$1.0 to 1.2, the price-to-earnings ratio of the pan-Asian environment in 2013 is 10.56-12.67 times, and the price-to-price ratio is 2.50-2.67 times. In the market, only 1237.HK trades at 5.2 times earnings, but shares have underperformed since they went public. Of course, the company's gross profit margin can be maintained at 54.9% in 2013, but due to the increasing demand in the real estate market in China and Hong Kong, it is expected that the relevant banks will be adversely affected, so investors are advised to invest in the market.

Negative factor

(1) the company provides regular service based on estimated time and cost, however, the actual cost of the project may exceed the service due to the unexpected circumstances encountered by the company during the whole period; (2) the company relies on its key managers; (3) the company's employees rely heavily on qualified personnel; (4) the scope of work of the company is limited to the acquisition of specific professional qualifications. (5) the company itself may appoint a subcontractor to undertake certain parts of the project of the company, and the work schedule of the subcontractor may be beyond the control of the company; (6) the company may occasionally involve legal and other obligations as a result of financial or other matters, and may face major losses; (7) in order to meet customer specifications, the cost incurred by the company may exceed expectations.