Business Overview Financial Summary
Hong Kong Johnson Holdings is Hong Kong's leading provider of environmental hygiene services, providing a wide range of environmental hygiene services. According to industry reports, in terms of 2018 revenue and market share, the group ranked first among environmental health service providers rooted in Hong Kong. The Group provides environmental hygiene services to two types of customers, namely government and non-government sector customers, and provides the following types of services: (1) Building cleaning services are the main source of revenue: Providing comprehensive building cleaning services, usually including cleaning and waste disposal services for residential buildings, commercial buildings, parking lots, clubhouses and public places, as well as pest control services. (2) Cleaning services for parks and recreation centres are another major source of revenue, providing cleaning services in various places such as parks, leisure areas, sports centers, playgrounds and gardens. (3) Street cleaning services can be classified as cleaning services, deep cleaning services, and garbage management and collection services. (4) College cleaning services include the provision of cleaning services, waste management services and pest control services for educational institutions. In the three financial year periods up to 2017, 2018 and March 2019 and up to September 20, 2019, the Group has submitted 451 tenders and has been awarded 36 tender contracts. The total value of the tender contracts is approximately $229 million. The total value of the tender contracts approved by government sector customers and non-government sector customers is approximately $119 million and $110 million, divided into approximately $119 million and $110 million.
Competitive advantage
The famous brand “Zhuang Chen” belongs to the industry
Establishing long-term stable relationships with government and non-government sectors and risk factors with competitive advantage
The revenue comes from whether a contract can be successfully obtained and approved through a bidding process or quotation
Revenue relies too much on major customers
Use of proceeds
Approximately 34.8% is used to cover prepayment costs to manage the mix of cash flow between payroll payments and sales revenue receipts
About 19.0% will be used to upgrade software and hardware and hire additional talents
Approximately 17.4% were used to purchase professional vehicles
Approximately 17.0% will be used to develop waste management services
About 5.8% is used to purchase automated cleaning equipment and equipment
Approximately 6.0% is used as general working capital