August 1, 2023, from Wuhu, AnhuiWuhu Urban Construction Group Co., Ltd. Wuhu Urban Construction Group Co., Ltd.(Hereafter referred to as “Wuhu Urban Construction Group”) Submitted a prospectus on the Hong Kong Stock Exchange and proposed IPO listing on the Hong Kong Main Board.

Wuhu Urban Construction Group prospectus link:

HKEXNEWS.hk/app...

Main business

Wuhu Urban Construction GroupFormerly known as the Wuhu Municipal Engineering Management Office established in 1987, as a provider of state-owned construction and municipal infrastructure operation and maintenance services, it mainly focuses on providing construction, operation and maintenance services, including:

• Providing engineering construction services as a general contractor, mainly housing construction projects (including industrial building construction, residential building construction and public building construction), municipal engineering projects (including municipal roads and bridges and their supporting facilities and ancillary facilities and parks);

• Operation and maintenance servicesIt mainly includes the regular inspection, maintenance and maintenance of municipal roads, bridges, drainage and integrated pipe galleries.

Wuhu Urban Construction GroupOur customers mainly include local governments and state-owned enterprises. The company is rooted in Wuhu City and has further expanded its business to other cities in Anhui, including Hefei, Bozhou, Bengbu, Chuzhou, Chizhou, Ma'anshan, and Lu'an. It has also successfully expanded its business to Sichuan Province.

According to Frost & Sullivan, in 2022:

• In terms of revenue from housing construction projects in Anhui Province,Wuhu Urban Construction GroupThe market share is 0.2%;

• In terms of municipal engineering revenue,Wuhu Urban Construction GroupRanked 13th among more than 300 state-owned municipal engineering suppliers in Anhui Province, with a market share of 0.3%;

• In terms of revenue from the operation and maintenance of roads, bridges, drainage facilities and integrated pipe galleries,Wuhu Urban Construction GroupIt ranked first among all state-owned operation and maintenance service providers in Anhui Province, with a market share of 1.4%.

On July 23, 2023,Wuhu Urban Construction GroupThe construction qualifications include four Level 1 qualifications, two Level II qualifications, and seven Level 3 qualifications. Of these, six are general contracting qualifications and seven are professional contracting qualifications. In addition, the company also has (i) design qualifications, including two grade A qualifications and five grade B qualifications; (ii) one grade B survey qualification; and (iii) two grade A supervisory qualifications.

Shareholder structure

According to the prospectus disclosure,Wuhu Urban Construction GroupIn the equity structure before listing,

Under the Wuhu State-owned Assets Administration CommissionAnhui Zhongjiang, holding 45.00% of the shares;

Owned by Ms. Wu Xueqin, Ms. Wang Aijian, Ms. Zhu Haichen, Ms. Yang Meifang, Mr. Tan Jiandong, and Ms. Chen YanJiangsu Zhongru Construction, holding 8.00% of the shares;

Owned by Mr. Shui Xinlong, Mr. Zhang Zhihong, Mr. Wang Guanghai, and Mr. Lu ZhenglongSankun Garden, holding 5.00% of the shares;

Owned by Mr. Ding Congming, Ms. Bao Lu, and Ms. Shao JuanZhaotong Construction, holding 5.00% of the shares;

Hangxiao Steel(600477.SH), holding 5.00% of the shares;

Source environment(688679.SH), holding 5.00% of the shares;

Jinniu Electric(870014.NQ), holding 5.00% of the shares;

Owned by Mr. Weng Shiming and Mr. Weng ChengchengSanlin Concrete, holding 5.00% of the shares;

Owned by Mr. Zou Le, Mr. Wang Hua, and Mr. Fu XiangsanGewtz Property, holding 5.00% of the shares;

Mr. Yue Lei (4.46%, GP) and 19 other employees of the company passedYanzhong partnership, holding 2.54% of the shares;

Mr. Yang Lei (10.95%, GP) and 20 other employees of the company passedJunchuang partnership, holding 2.53% of the shares;

Mr. Zhang Yong (13.97%, GP) and 22 other employees of the company passedCo-creation partnership, holding 2.52% of the shares;

Mr. Wang Dong (17.69%, GP) and 20 other employees of the company passedPudding partnership, holding 2.51% of the shares;

Ms. Li Li (13.23%, GP) and 22 other employees of the company passedZhenshang Partnership, holding 1.90% of the shares;

Directors and Executives

Wuhu Urban Construction GroupThe board of directors consists of 9 directors, including 4 executive directors, 2 non-executive directors, and 3 independent non-executive directors.

directorates(9 people)

Supervisory Board(3 people)

executives(5 people)

Executives include Mr. Zhu Zhifu, Chairman of the Board, Executive Director, General Manager and Company Secretary; Mr. Yang Lei, Executive Director, Deputy General Manager and Financial Director; Mr. Zhang Yong, Executive Director and Deputy General Manager; Mr. Yue Lei, Executive Director and Secretary of the Company's Commission for Discipline Inspection; and Ms. Li Li, Secretary of the Board of Directors and Joint Company Secretary.

Company performance

According to the prospectus, in the past four months of 2020, 2021, 2022, and 2023,Wuhu Urban Construction GroupOperating income was RMB514 million, 1,085 million, 2,216 million and 936 million yuan respectively; the corresponding net profit was RMB129 million, 151 million, 159 million and 064 million yuan respectively.

Intermediary team

Wuhu Urban Construction GroupThe main intermediary team for this IPO includes Orient Securities International as its sole sponsor; KPMG as its auditor; Jin Tiancheng and Fangda (Hong Kong) as their company's Chinese lawyers and Hong Kong lawyers respectively; De Heng as their brokerage firm's Chinese lawyer; and Frost & Sullivan as its industry advisor.