Comprehensive Overview

The Group mainly supplies materials for construction projects and has two main business divisions, namely cable business and preload material business. The Group's cable business mainly supplies bridge cables for large span bridges and oversized bridges, while the preload materials business mainly supplies pre-load materials used in the construction of various infrastructure facilities.

According to Frost & Sullivan, from 1991 to 2017, the group supplied cables for 35.1% of the oversized bridge built in China. The group ranked second in terms of revenue from the sale of bridge cables in 2017, while the group ranked third in terms of sales revenue of pre-load materials in 2017.

Risk Factors

There is a serious mismatch between the group's trade receivables and the number of days that trade accounts payable are turned over. In 2018, the group's average trade receivables turnaround days was 158 days, while the group's average trade receivables turnaround days was 15 days. If the customer is in arrears payment for a long period of time or fails to pay or refund the guarantee deposit, the group's operating cash flow may not be sufficient to meet the working capital requirements.