Wing Fung Group is an acclaimed supplier of waterway trade and shipping services between China and Hong Kong. The Group provides foreign trade transit services in South China. Hong Kong, Nansha (one of Guangzhou's main ports) and Shenzhen are the Group's main transit ports.

According to Euromonitor's report, the group ranked fifth among all foreign trade transfer service providers and second among non-state enterprise competition participants in Guangzhou, Shenzhen and Hong Kong based on the calculation of container transit volume using a standard box scale in 2015. The group was founded in 1993 and is headquartered in Hong Kong. It has a history of over 22 years. As of December 31, 2015, the Group has a total of 19 operating locations including the Hong Kong headquarters, including branches and representative offices in Fujian, Guangdong, Guangxi, and Hainan.

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Company advantages

(1) A strong presence and extensive international network in South China; (2) effective fleet and container management to maximize the reliability and flexibility of services; (3) the group's business model integrates shipping services to achieve synergistic effects; (4) a strong customer relationship and broad customer base that can disperse group risks; (5) have a strong relationship with international container transport companies and establish stable container exchange agreements to improve operational efficiency; (6) have stable relationships with international container transportation companies and establish stable container exchange agreements to improve operational efficiency; (6) A well-defined and experienced management team.

Industry Overview

According to the Ministry of Transport of the People's Republic of China, from January 2015 to November 2015, RMB 127.8 billion was invested in inland and coastal construction, of which RMB 80 billion was invested in coastal ports. From January 2015 to November 2015, port cargo throughput reached 10.5 billion tons, up 2 percentage points from the first 11 months of 2014.

Fujian Province has an excellent geographical location, which is conducive to the construction of a deep-water port and the expansion of the port scale. According to the Fujian Port Annual Report, Fujian Province has the deep-water coastline ranked first in China, with a total of 47 kilometers and 23 locations. 80 ports can be built, which can dock 200,000 ships. Increased investment in infrastructure and continued port construction can provide a solid foundation for future growth in waterway trade and shipping services. According to the 2015 Fujian Economic and Social Development Statistics Report, in 2015, container throughput reached 13.6 million TEU, an increase of 7.3% over 2014.

The performance of waterway trade and shipping services in Guangdong Province was strong, and recorded steady growth from 2010 to 2015. The rapid growth in trade has given rise to a boom in waterway trade and shipping services. The economic hinterland of Guangdong Province is huge, which helps promote the growth of domestic and foreign trade. As a result, ports such as Guangzhou Port and Shenzhen Port have become important foreign trade windows and are also maritime logistics centers in South China. Both cargo throughput and container throughput rank among the highest in mainland China.

According to documents issued by the Guangxi government, the total cargo throughput reached 314.2 million tons, an increase of 1.1% over 2015. The recorded international cargo throughput in 2015 was 127.2 million tons, down 1.5% from 2014. In 2015, Guangxi recorded a double-digit increase in total container throughput, up 18.1% from 2014 to 2.0 million TEU.

Hong Kong is a close trading partner with mainland China. In 2014, the value of goods exported to China by various means of transport was HK$1,937 billion, accounting for 53.7% of total exports. As living standards and purchasing power have improved, domestic consumers have strong demand for imported goods. On the other hand, goods imported from domestic to Hong Kong amounted to 49.0% or HK$1,984 billion. Hong Kong relies on domestic resources, from food and raw materials to finished products. Hong Kong also acts as a transit trade center for exports of goods originating in mainland China to other Asian countries or around the world. In 2015, goods originating in mainland China accounted for 53.8% of transit cargo or HK$1,916.2 billion. Factors such as high efficiency and well-developed infrastructure and the location of major transport routes have made Hong Kong a successful transit trade centre.

Profitability and financial figures

Based on historical records for the past 3 years, the Group's revenue fell from HK$591.0 million in fiscal year 2013 to HK$459.2 million in fiscal year 2015; net profit increased from HK$31.3 million in fiscal year 2013 to HK$38.2 million in fiscal year 2015, with a compound annual growth rate of 10.5%. Profit increased during the record period, mainly due to increased gross profit effects of mergers