A summary of the collection

Jiguan is the leading manufacturer and supplier of hole drilling tools in Hong Kong, providing rock blasting technical solutions for customers with various types of rock needs. According to Frost Sullivan's report, Hong Kong's market share in 2015 was 59.2% by earnings. In addition, we collect and sell playing machines, machines and rock equipment from external suppliers.

A collection of drilling tools designed independently by workers in the German-German region of China. The collection mainly comes from five suppliers in China who purchase the main raw materials. The collection also sells third-party drilling machines and equipment from external suppliers and manufacturers mainly located in Japan, China, Italy, Australia and Australia, and provides rock technical solutions to customers.

Industry summary

The hole and rock tool industry in Hong Kong has increased step by step from about HK $9990 million in 2010 to about HK $172 million in 2015, with a compound annual growth rate of 11.5%. This is due to the planned and implementation of major infrastructure projects such as the Hong Kong-Zhuhai-Macao University and the Lan Road extension Project from 2011 to 2013. According to Frost Sullivan's report, the market is expected to maintain growth during the test period, reaching about HK $279 million in 2020, but due to delays in the planning of infrastructure projects, the annual growth rate for 2015-2020 is slightly reduced to 10.1%.

Cymbals

The production process requires a large number of reliable supply of alloy and carbide raw materials, and the collection comes from a third party. Collect and agree on the adjustment arrangements for the fluctuation of raw materials, so that they are related to the fluctuation of raw material cost. The future fluctuations and uncertainties of the expected carbonization cycle will continue. If the collection fails to reflect the growth of raw materials in the product, it may have a significant adverse effect on the operating performance of the product.

Valuation

According to the IPO documents, assuming that the interim dividend declared in July has been completed on June 30, 2016, a total of 3.8 or so shares are expected to be issued after the completion of the sale of long-term shares. equivalent to an untested net value of tangible assets per share of HK $0.28 to HK $0.32.