A summary of the collection

Jiguan is a communications equipment manufacturer and supplier of cable products in Jiangxi Province, China. It operates under the brand names of "Putianyuan" and "Hanphy". The communications products of the collection include a variety of optical and communications networks, which are mainly used for construction and maintenance by China's major e-mail networks. According to the Yipusuo report, according to the sales revenue of communications sales in 2016, the collection ranks 10th among China's telecommunications manufacturers, while the market share collected in China's telecommunications market and optical market are 2.2% and 0.7% respectively.

Since 2012, the collection has started to provide integrated wiring products for major e-mail network clients and non-customers. The assembly line products mainly include optical and optical jumpers, as well as connection and wiring components, such as scaffolding and matching equipment.

Industry summary

According to the National Statistics Bureau, the volume of China's communications sales dropped from 4900 million pairs of kilometers in 2011 to 3900 million pairs of kilometers in 2016, with a compound annual growth rate of 4.4 percent. Ipsos research and analysis estimates that the compound annual growth rate from 2017 to 2020 is 6.8 percent. In addition, the sales volume of communications sales dropped from 223.87 billion yuan in 2011 to 11.302 billion yuan in 2016, representing a combined annual growth rate of 12.8 percent.

According to the Ministry of Industry and Information Technology, from 2011 to 2016, the volume of China Optics increased from 113 million km to 2.08 km, with a compound annual growth rate of 13.0%.

Ipsos research and analysis predicts that the volume from 2017 to 2020 will grow at a compound annual growth rate of 9.7%.

Cymbals

Collection or face to face because of the concentration of customers and face to face with a large number of activities or changes. The major e-mail network operators are the main customers of China's optical and communications network providers, and due to the limited number of major e-mail network providers in China, the cluster is concentrated in the customer cluster. In 2016, revenue from the top five customers accounted for 94.0% of total revenue. If the collection has a relationship with any major customer, the profitability of the collection will be adversely affected.

Valuation

According to the IPO document, as of April 30, 2017, based on the 11.00 shares expected to be issued after the completion of the sale of the shares, the shares should account for 245 million to 342 million yuan of net tangible assets, equivalent to 0.26 to 0.37 Hong Kong dollars per share. (based on the exchange rate of 1.00 yuan to 1.18 Hong Kong dollars).

The purpose of the income is:

Based on the fact that the amount of sales is HK $0.73 (the median of the range of sales), after deducting the estimated expenditure payable on the issue of shares, the net income is estimated to be HK $166.7 million.