Business summary

Wing Fung Group is mainly engaged in the supply, installation and repair services of ventilation and air conditioning systems for building machinery in Hong Kong and Macau as subcontractors. The Group's direct customers mainly include the chief contractors and subcontractors of various building projects (including infrastructure, commercial and residential building projects in Hong Kong and Macau). Over the past period, the Group's suppliers of goods and services mainly included (i) air conditioning equipment and materials suppliers, (ii) equipment and materials processing service suppliers and (iii) equipment and materials processing service suppliers (iii) Machine rental service providers.

Competitive advantage

The Group's relationships with key customers, suppliers and subcontractors are strong

The group's bidding procedures and cost control management were effective

The Group has the undertakings and safety and environmental certifications to provide quality engineering and services

Risk Factors

The Group's business relies on successful bidding, and failure to obtain a bidding contract will affect operations and financial results

Faced with customer credit risk, if customers fail to make payments on time or in full, the group's liquidity situation may be adversely affected

Any delays or defects in the work of the supplies and subcontractors will adversely affect the Group's operating and financial results

Use of proceeds

Approximately 24.1% was used as a performance guarantee for new item acquisitions

Approximately 57.9% was used to hire additional workers and provide related training

Approximately 8% was used to rent new offices and hire additional staff in Macau

Approximately 10% is used for working capital