Hong Kong Exchanges and Clearing Limited announced on September 25th.$Wing Lee Development Construction Holdings Limited (810621.HK)$ conducted a listing hearing on the main board of the Hong Kong Stock Exchange, with Tonman Finance Limited as its exclusive sponsor.

According to the prospectus, Rongli Construction Holdings is a Hong Kong-based contractor engaged in civil and cable engineering as well as cecep solar energy photovoltaic system engineering. The company's civil engineering focuses on site preparation works and road and drain works, while cable engineering specializes in cable trenching, laying, and connection works. In terms of cecep solar energy photovoltaic system engineering, the company focuses on the design, installation, and maintenance of cecep solar energy photovoltaic systems. In addition, during the historical period, in some projects it participated in (mainly the #01 project), the company would temporarily lease machinery and buy building materials from contractors and subcontractors.

The company's site preparation works typically include earthwork, excavation work, and steel structure installation. Its road and drain works mainly involve construction and renovation of roads, driveways, and sidewalks; construction of covered walkways; renovation of tunnels and pedestrian overpasses; provision of unobstructed access facilities for pedestrian overpasses, elevated walkways, and tunnels; construction of drainage systems, manholes, cable trenches, and installation of water mains and sewage pipes.

Rongli Construction Holdings' cable engineering typically includes cable trenching, laying, and connection, involving excavation, repair, and miscellaneous building works (such as concrete pouring), traffic impact assessment, and emergency and cable fault repairs. According to industry reports, Rongli Construction Holdings is the largest subcontractor for cable and civil pipeline installations in Hong Kong in 2023, with an estimated market share of around 13.6% based on its 2023/24 financial year earnings. Additionally, since 2019 and during the historical period, the company has also undertaken the design, installation, and maintenance of cecep solar energy photovoltaic systems under its cecep solar energy photovoltaic systems business segment.

During the historical period, each division of Rongli Construction Holdings participated in several major infrastructure projects in Hong Kong. For example:

(i) In terms of the company's site preparation works, it is one of the subcontractors involved in the Hong Kong International Airport Third Runway Infrastructure Project (i.e., the Third Runway Project);

(ii) In terms of its road and drainage works, the company is the total contractor for the rural sewage collection project in Mei Wo by government departments, with a contract amount of approximately 99.1 million Hong Kong dollars;

(iii) As for its cable projects, the company has directly signed contracts with CLP Group (a group company providing electricity to over 80% of Hong Kong's population), to provide trenching, laying, and jointing of flat cables, as well as emergency and cable fault repairs under General Agreement A, covering Sham Shui Po and Wong Tai Sin areas. The company also serves as a subcontractor for Gammon Construction (one of CLP Group's main contractors), providing trenching, laying, and jointing of flat cables, as well as emergency and cable fault repairs under General Agreement B, covering the Tsuen Wan area. The company is the sole direct subcontractor for CLP Power Source Limited and Gammon Construction (both main contractors), responsible for the scope of work outlined in General Agreements A and B (trenching, laying, jointing of cables, emergency and cable fault repairs).

In terms of clients, during the past reporting periods, the major clients of Wing Lee Construction Holdings included the CLP Group (a company providing electricity to over 80% of Hong Kong's population) and its main contractors, construction contractors in Hong Kong, joint ventures established by state-owned enterprises through their subsidiaries, and several government departments.

Financially, for the financial year ended March 31, 2022, March 31, 2023, and March 31, 2024, the company's revenues were approximately 520 million Hong Kong dollars, 361 million Hong Kong dollars, 526 million Hong Kong dollars respectively; during the same periods, the company's annual profits were approximately 59.055 million Hong Kong dollars, 40.565 million Hong Kong dollars, 76.907 million Hong Kong dollars respectively.

According to Wing Lee Construction Holdings' prospectus, during the past reporting periods, the company was mainly involved in public sector projects in Hong Kong. The company's public sector projects mainly included site formation works and road and drainage works projects. In the financial years 2021/22, 2022/23, and 2023/24, the service revenue generated by the company's public sector projects accounted for approximately 65.6%, 58.4%, and 73.2%. The nature, scope, and duration of available public sector projects generally depend on various factors, including the government's policies on infrastructure and public facility development, land supply and public housing policies, as well as the general economic conditions and outlook of Hong Kong. If the government reduces spending on infrastructure, public facilities, and public housing development or changes its relevant policies, the number of available public sector projects may decrease, potentially resulting in significant adverse impacts on the company's business, financial condition, and operational performance.