Main date:

Public release closing date: 12: 00 noon on May 31, 2017

Announcement application results: June 12, 2017

Listing date: June 13, 2017

The family guarantor:

Dayou Rongji Co., Ltd.

Summary of statistics:

Number of shares sold: 250000000 shares

Share of publicly sold shares: 10%

Sales: HK $0.40 to HK $0.42

Estimated collection of funds: HK $100 million to HK $105 million

Income per hand: HK $4242.32

A summary of the collection

It is a subcontractor which mainly provides one-stop design and construction solutions for platform outsourcing and curtain works in Hong Kong. In addition, the collection also provides maintenance and warranty services.

In terms of platform outsourcing and curtain engineering services, the services undertaken by the collection company in general design and construction projects mainly include the development of external or curtain system design, structure calculation and construction engineering, purchasing materials, arranging material fabrication and installation works, etc. This industry has accounted for more than 90% of the annual income of the market in the past three years.

In terms of platform outsourcing and screen maintenance and warranty services, the projects undertaken by the collection mainly include maintenance or replacement of damaged parts, glass panels and glass frames, and the provision of inspection and inquiry services for maintenance works.

Industry summary

According to Ipsos research and analysis, the revenue of Hong Kong's platform outsourcing and curtain engineering industry increased from HK $4.25 billion in 2011 to HK $5.1 billion in 2015, with a complex annual growth rate of 4.7%. The increase was mainly due to the increase in the number of building projects and the increase in platform outsourcing and curtain projects. The revenue of the platform outsourcing and screen engineering industry will continue to grow, from 5.25 billion Hong Kong dollars in 2016 to 6.27 billion Hong Kong dollars in 2020, with a combined annual growth rate of 4.5 percent. It is believed that this growth will be driven by the development of planning and the conversion of government property to commercial use in the North New Territories Development area.

Cymbals

In the past three years, the total revenue provided by the five major customers of the collection each year accounted for more than 90% of the total revenue. If the collection is unable to maintain a relationship with such customers or obtain new services, or cause a bad impact on the transaction and business list of the collection. In addition, in the past three years, the use of construction materials and processing materials accounted for more than 35% of the total revenue, and such consumption was greatly affected by the large environment and concentrated under control, such as the misprediction of such costs, or the cost was adversely affected.

Valuation

According to the IPO document, as of December 31, 2016, based on the calculation of more than 1.00 shares expected to be issued after the sale of the shares, the shares should account for HK $166 million to HK $170 million in consolidated tangible assets, equivalent to HK $0.166 to HK $0.170 per share.