On July 3, Futu News reported that $ZHONGGAN COMM (02545.HK)$The first day opened low and is now down 39.2% to HKD 0.76 per share with a turnover of HKD 23.1982 million and a total market value of HKD 486 million as of the time of publication.

Market source: Futu Securities.

According to earlier reports, during the previous day's Futu pre-market trading, ZhongGan Communications opened low and fell 35.2% to HKD 0.81 per share with a turnover of HKD 4.9744 million and a total market value of HKD 518 million; each lot of 2000 shares has a loss of HKD 880 without consideration of handling fees.

In addition, according to previous public information, ZhongGan Communications received 195.99 times oversubscription during the public offering phase. After clawback and redistribution, the final number of shares offered publicly was 80 million shares, accounting for approximately 50% of the total number of shares to be sold. A total of 14,245 valid applications were received, and 12,665 were accepted. The percentage of successful one-lot H-share applications to total applications was approximately 70.01%.

In addition, after redistribution, the final number of international offering shares was 80 million, equivalent to 50% of the total offering shares. Futu News has compiled the related data in the following table:

Company overview

Zhonggan Communications was founded in 2002 as a well-known comprehensive service provider and software developer headquartered in Jiangxi, China, specializing in providing telecommunications infrastructure services and digital solutions services. Since its establishment, Zhonggan Communications has established long-term and stable business relationships with major participants in China's telecommunications industry (including the three major telecommunications operators, i.e., the three major telecommunications network operators in China) and the world's largest telecommunications tower infrastructure service providers. According to Ipsos' report, ranked third in revenue for all telecommunications network infrastructure construction and maintenance service providers in Jiangxi Province in 2023, with a market share of approximately 3.1%.

Over the years, Zhonggan Communications has established an excellent track record in providing telecommunications infrastructure services to major practitioners in China's telecommunications industry (mainly large state-owned enterprises), and has accumulated rich experience through undertaking various telecommunications infrastructure service projects, including 261 completed projects during the track record period and 109 ongoing projects as of December 31, 2023, and projects without income, involving different types of infrastructure construction services and infrastructure maintenance services. In addition, as a service provider located in Jiangxi Province, Zhonggan Communications' main competitive advantage lies in its deep understanding of local market dynamics, technical requirements, and customer expectations, as well as its ability to provide localized services by better coordinating provincial resources, thus surpassing other national service providers.

The table below outlines Zhonggan Communications' main business activities and business models related to its telecommunications infrastructure services business division:

Financial overview

In terms of financial condition, Zhonggan Communications' revenue in 2021, 2022, and 2023 was RMB 479 million, RMB 413 million, and RMB 609 million, respectively, with a compound annual growth rate of 12.77% from 2021 to 2023. During the same period, gross profit was RMB 91 million, RMB 104 million, and RMB 149 million, respectively, with a compound annual growth rate of 27.96% from 2021 to 2023.

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Editor/irene