Introduction of shares

Main date:

Public release closing date: 12: 00 noon on October 12, 2018

Announcement application results: October 22, 2018

Listing date: October 23, 2018

Guarantor:

Dayou Rongji Co., Ltd.

Summary of statistics:

Number of shares sold: 250000000 shares

Proportion of shares sold publicly: 10%

Sales: HK $0.50 to HK $0.60

Estimated collection of funds: HK $125 million to HK $150 million

Income per hand: HK $2424.18

A summary of the collection

It is a Hong Kong maritime service provider with a history of more than 20 years. The services provided by the market include: (I) ship chartering and related services; and (ii) ship management. According to the Ipsos report, the market share held by the local ship chartering industry in Hong Kong in 2017 was about 4.2%.

The collection includes all kinds of vessels, such as tugs, boats, working vessels and non-self-propelled vessels. As at the last practicable date, the fleet included a total of 58 vessels, including 20 self-employed vessels and 38 chartered vessels.

Industry summary

According to Ipsos research and analysis, the total output value of Hong Kong's local charterers increased from about HK $38.070 billion in 2013 to about HK $40.429 billion in 2017, with a combined annual growth rate of 1.5%. It is estimated that the total output value of ship chartering projects in Hong Kong will increase from about HK $41.680 billion in 2018 to about HK $44.123 billion in 2022, with a compound annual growth rate of 1.4 per cent.

Cymbals

Most of the revenue from the collection comes from non-routine agreements granted item by item, and generally does not enter into any long-term agreement or general service agreement with the customer. The customers of the collection and review the appointment of the collection, and it is not necessary to renew the existing agreement. If the collection fails to renew the existing agreement or obtain a new one, the sustainable development and operational implications of the collection may be adversely affected.

Valuation

According to the IPO documents, assuming that the global development sale was completed on March 31, 2018, 10 or so shares will be issued in the expected period after the completion of the sale of long-term shares, equivalent to HK $0.16 to HK $0.18 per tangible assets per share.