Introduction of shares

Main date:

Public launch closing date: February 3, 2017 at 12: 00 noon scheduled due date: February 6, 2017

Announcement application results: February 9, 2017

Listing date: February 10, 2017

Guarantor:

Shang Sheng Rong Yun Co., Ltd.

Summary of statistics:

Number of shares sold: 360000000 shares (including 60000000 shares sold) share of publicly sold shares: 10%

Sales: HK $0.35 to HK $0.40

Estimated fund collection: HK $105 million to HK $120 million

Income per hand: HK $3232.25

A summary of the collection

The market mainly provides equipment exchange and rental services in Hong Kong. its services include: 1) the construction of machinery exchange; 2) the construction of machinery rental; and 3) the provision of local transport services with boom cranes. The construction machinery exchange service is mainly for the purchase of foundation machinery and perforated accessories, and the collection has also agreed with some major suppliers. As for the construction equipment rental service of the market, the main focus is on the generation of generators for rental construction and mechanical projects to provide power supply. In the year ended March 31, 2016, the revenue from the five major suppliers accounted for about 59.5% of the total machinery fund, and the revenue from the five major customers accounted for about 59.3% of the total revenue during the period.

According to the Falls report, JMC became the third largest construction machinery exchange company in Hong Kong in 2015, with a market share of about 4.1%. In addition, the market is also a leading foundation engineering machinery exchange company in Hong Kong, with a market share of about 28.3% during the period. In terms of leasing services, it is also the second largest power and energy machinery leasing company in Hong Kong, with a market share of about 8.9%.

Industry summary

According to the Falls report, the market size of the Hong Kong construction machinery exchange market fell from 3.971 billion Hong Kong dollars in 2010 to 3.306 billion Hong Kong dollars in 2015, with a compound annual growth rate of 3.6 percent. However, it is reported that thanks to the planned construction of infrastructure projects and the expected launch of new large-scale reconstruction projects in nine cities, it is estimated that the construction of mechanical and mechanical trade will pick up in the next five years, and it is estimated that the market will grow at a positive 2.9% annual growth rate between 2016 and 2020.

Cymbals

The revenue of the collection may depend on the number and size of items approved by customers and the number of machines used for such items. Wait for the customer to complete the relevant sections related to the participation in the construction project, and the employment meeting between the customer and the customer will be over. If the customer no longer employs the bazaar, it will adversely affect the operating expenses and future profits of the bazaar.

Valuation

According to the IPO document, as of July 31, 2016, it was calculated on the basis of the 1,20000 shares expected to be issued after the sale of the shares was completed, and the final dividend of HK $1200 and the special dividend of HK $3 million were declared to the current stock market on March 31, 2016, accounting for an untested tangible assets per share of HK $0.16 million to HK $0.18.