On September 25, 2024, the prospectus of Wing Lee Development Construction Holdings Limited from Hong Kong, shortly after the hearing, will be listed on the main board of the Hong Kong Stock Exchange. It submitted its application on June 28, 2024.
Wing Lee Development Construction prospectus link after the hearing:
https://www1.hkexnews.hk/app/sehk/2024/106583/documents/sehk24092501751_c.pdf
Main Business
Wing Lee Construction, established in 2005, is a sizeable Hong Kong contractor engaged in civil and cable engineering as well as solar photovoltaic system engineering. According to the Frost & Sullivan report, Wing Lee Construction was the largest cable and civil pipe installation subcontractor in Hong Kong in 2023, with a market share of approximately 13.6% based on revenue for the 2023/24 fiscal year.
Wing Lee Development Construction has gradually expanded its business scope, undertaking projects in the public and private sectors as subcontractors and general contractors. In the public sector, its projects include major infrastructure projects in Hong Kong, such as the Hong Kong International Airport's third runway infrastructure project and projects undertaken by multiple government departments and statutory bodies. In the private sector, its projects include projects for CLP Group, a group company that provides electricity to over 80% of Hong Kong's population.
Wing Lee Development Construction's revenue comes from: 1) civil engineering, focusing on earthworks and road and drainage works; 2) cable engineering, focusing on cable trenching, laying, and termination works; 3) cecep solar energy photovoltaic system engineering, focusing on the design, installation, and maintenance of cecep solar energy photovoltaic systems. Others include temporary leasing of machinery and buying and selling building materials to contractors and subcontractors.
Shareholder Structure
The prospectus shows that in the pre-IPO shareholder structure of Rongli Construction,
Mr. Yao Hongli, Mr. Yao Honglong, and Mr. Chen Lumin respectively hold 68%, 17%, and 15% of Wing Lee Green Development, which holds 100% of the shares.
Board of directors and executives
Wing Lee Construction's board of directors is composed of 7 directors, including:
4 executive directors: Mr. Yao Hongli (Chairman of the Board and CEO), Mr. Yao Hongrong (Vice Chairman of the Board and Mr. Yao Hongli's older brother), Mr. Chen Lumin, and Ms. Xie Jiaying (CFO and Company Secretary);
3 independent non-executive directors: Mr. Shang Hailong (Legislative Councilor), Mr. Fok Wah-kuen, and Mr. Leung Wai-hung.
In addition to the executive directors, the executive team also includes Mr. Wong Sai-yiu (Deputy General Manager), Mr. Mo Zhao-bao (Deputy General Manager), Mr. Yan Wing-yang (Chief Civil Engineer), Mr. Ho Chun-chung (Engineering Director), and Mr. Lai Ka-wing (Chief Engineer).
Corporate Performance
According to the prospectus, Wing Lee Construction's revenue for the past fiscal year ended March 31, 2022, 2023, and 2024 respectively was HKD 520 million, HKD 361 million, and HKD 526 million, with the corresponding net profits being HKD 59.055 million, HKD 40.565 million, and HKD 76.907 million.
Intermediary Team
Wing Lee Construction's main intermediary teams for this IPO are: Tungsten Finance as its exclusive sponsor; PwC as its auditor; K. Y. Ho & Sons as its Hong Kong lawyer; KPMG as its brokerage Hong Kong lawyer; and Frost & Sullivan as its industry consultant.