Group Overview

The Group mainly engages in the provision of thermal imaging products and services, self-stabilizing imaging products and services, and general aviation products and services in China and Hong Kong. The Group is headquartered in Hong Kong and has 6 sales offices in China. The Group markets the Group's products and services under the brands “Other Side”, “PTi”, “Sky Eye”, “Sea Lion” and “PGs”. The Group's customers generally require the Group to tailor the appropriate products according to their needs, and the Group will use equipment and components purchased from third party suppliers and/or manufactured by the Group to provide appropriate products and services. The group tailors some products according to customer specifications (such as weight and model). The Group also provides customers with training and after-sales support on how to use the Group's hardware and software products.

Industry Overview

According to the China Federation of Electric Power Enterprises and the Hong Kong Trade Development Council, the market size of the thermal imaging products and services market in China and Hong Kong rose from RMB 1,776 billion in 2013 to RMB 2,601 billion in 2017, with a compound annual growth rate of 10.0%. According to Frost & Sullivan estimates, this market size will rise from RMB 2,876 billion in 2018 to RMB 3,945 billion in 2022, with a compound annual growth rate of 8.2%.

Dangerous

The Group's contracts were mainly awarded through public tenders, and the Group and its main clients did not agree for a long time. If the group fails to obtain a new contract through tenders, it may affect the group's financial performance. Furthermore, the Group's future expression and reputation will depend on whether the Group can continue to develop new or improved products that meet customer needs. If the Group fails to keep up with the pace of technological development and the ever-evolving customer needs and expectations, the Group's business may be adversely affected.

valuations

According to the prospectus, assuming that the global offering was completed on June 30, 2018, calculated on the basis of approximately 400 million shares to be issued immediately after the completion of the share sale, totaling the exemption deed dated December 17, 2018 (the balance of payments due to directors of HK$117 million was exempted by one of the directors), shareholders should not be audited and adjusted for net tangible assets of HK$0.68 to HK$0.75 per share.