Hong Kong, August 28, 2024 / PRNewswire / - Guangdong Jishin State Control Inspection and Certification Technology Service Center Co., Ltd. (hereinafter referred to as "Jishin State Control") (8629.HK) will begin offering 10.179 million shares on August 26, 2024. The offering price per share ranges from HKD 8.6 to HKD 10.4, and the total amount of funds raised is expected to be HKD 96.7 million, based on the median offering price of HKD 9.5. The minimum subscription is 500 shares, and the entrance fee is HKD 5252.44. The offering period ends on September 3, and the listing on the GEM Board of the Hong Kong Stock Exchange is expected to take place on September 6.
The prospectus reveals that the funds raised in this offering will be mainly used for four purposes: firstly, approximately 37.4% of the funds will be used to expand the field of detection services and achieve service diversification; secondly, approximately 27.7% of the funds will be used to consolidate the existing market and expand the market scope, improving market share; thirdly, approximately 27.5% of the funds will be used for the expansion of construction engineering detection services, enhancing the company's competitiveness; finally, approximately 5.5% of the funds will be used to upgrade the ERP system to support future long-term development, and the remaining 1.9% of the funds will be used for general operating expenses to support the company's daily operations and development needs.
Established in 2000, Jishin State Control is headquartered in Maoming, Guangdong Province, China. It is a provider of construction engineering testing and inspection services. The company focuses on providing testing services for foundation, infrastructure, public roads, building materials, and building structures. It also provides technical services such as slope monitoring and foundation pit monitoring, and has been providing food testing services since May 2024. As of August 2024, the company has obtained qualifications in 39 categories of construction engineering, products and materials testing, environmental testing, food testing, and agriculture-related testing services approved by the Guangdong Provincial Market Supervision Administration.
According to the Zhaoshi Consulting report, Jishin State Control ranks among the top in the field of construction engineering testing technology and services in the western part of Guangdong. In 2023, the company's net profit was RMB 13.25 million, with a gross margin of 71.8% and a net profit margin of 31.9%. During the same period, the revenue increased by 107.9% year-on-year. In the first six months of 2024, the company's net profit was RMB 7.34 million, with an overall gross margin of 70.8% and a net profit margin of 32.2%. During the same period, the revenue increased by 39.8% year-on-year. According to the dividend policy disclosed in the prospectus, Jishin State Control plans to distribute dividends to shareholders on an annual basis, with a dividend payout ratio of not less than 20% of the annual after-tax distributable profit, while maintaining the company's healthy operating capital.