Business summary

Baofa Holdings is a subcontractor providing exterior and curtain wall engineering solutions in Hong Kong. It covers design and project management services, which are tailored to meet the customer's technical specifications and performance requirements. Design services usually include development and design, structural calculation, and construction drawing, while project management services usually include finding and purchasing building materials, arranging logistics and installation projects for building materials, site project management and post-project services. In addition, the group also occasionally appoints subcontractors to carry out installation projects.

Competitive advantage

Stable business relationships with major suppliers that provide reliable quality building materials and carry out quality installation projects

A one-stop supplier of exterior wall and façade engineering solutions

Long-term strong business relationships between the Group and some major customers

Risk Factors

Changes in construction materials and labor costs and subcontracting costs may lead to cost overruns

The subcontractor's poor performance or inability to find a subcontractor may adversely affect the management, profitability and reputation of the group

Use of proceeds

Approximately 32.7% was used to cover the upfront costs of 3 new items and 1 potential item

Approximately 18.7% was used to fulfill written guarantee requirements for projects located in Yue Man Square

Approximately 31.9% was used to expand the group's management team by hiring additional staff

Approximately 5.9% was used to rent an additional office in Hong Kong and pay management fees

Approximately 2% was used for the decoration of the above additional offices and the purchase of office and design-related equipment

Approximately 8.8% is used for general working capital