CHerish Holdings Limited Announced Subscription Results

Recorded 68.44 times over-subscription for Public Offering

HONG KONG--()--CHerish Holdings Limited (“CHerish”, together with its subsidiaries, the “Group”; stock code: 2113), site formation subcontractor in Hong Kong, announced subscription results for its Share Offer. The Hong Kong Public Offering recorded 68.44 times over-subscribed. The Offer Price per share has been set at HK$0.7 per share. Dealing in CHerish’s shares on the Main Board of The Stock Exchange of Hong Kong will commence on 17 October 2016 (Monday).

A total of 185,000,000 shares will be offered under the Share Offer, of which 111,000,000 Shares, or 60% will be offered by way of Placing. The remaining 40%, or 74,000,000 Shares, will be offered under the Public Offer. Based on the Offer Price of HK$0.7 per Hong Kong Offer Share, the net proceeds from the Hong Kong Public Offering (after deducting underwriting fees and estimated expenses in connection with the Hong Kong Public Offering) is estimated to be approximately HK$79.3 million.

Dakin Capital Limited is the Sponsor and China Prospect Securities Limited is the Bookrunner of the Share Offer. China Prospect Securities Limited and Dakin Securities Limited are the Joint Lead Managers.

Mr. TANG Man On, Chairman of CHerish, said, “We are honored that investors have shown great support in CHerish. We believe the response is the market’s recognition of the Group’s business and confidence in our future prospects. We strive to capitalize on the international financing platform in Hong Kong, in order to capture greater market share in site formation market, by further strengthening manpower and acquisition of additional machinery and equipment.”

CHerish mainly performs site formation works in Hong Kong as a subcontractor. The Group has over 14 years of experience in undertaking site formation works in Hong Kong. It provides comprehensive site formation solutions to client, which generally include general earthworks, tunnel excavation works, foundation works and road and drainage works. As part of ancillary services, it also undertakes steel fabrication and installation of steel working platform.

According to the Euromonitor Report, in 2015, the Group held an approximately 7.2% market share among site formation and clearance works subcontractors in Hong Kong. In terms of revenue receipts generated from provision of site formation work in Hong Kong, it is estimated that the top five players in the industry accounted for around 26.4% of the contractor’s site formation market share in 2015.

For the three years ended 31 March 2016, the Group generated revenue of approximately HK$83.9 million, HK$139.4 million and HK$210.0 million. Its net profit was approximately HK$9.7 million, HK$25.7 million and HK$28.4 million for the respective years.

Direct customers are mostly main contractors of various types of infrastructural and commercial and residential building in Hong Kong. Such projects can generally be categorised into public sector projects and private sector projects. During the Track Record Period, revenue generate from public sector projects accounted for approximately 95.0%, 99.3% and 73.8% of total revenue, which amount to HK$79.8 million, HK$138.5 million and HK$155.0 million for the respective years.

Financial Highlights

 
For the year ended 31 March
HK$’000   2014   2015   2016
Revenue 83,947   139,367   210,046
Gross Profit 14,933 35,236 42,500
Profit before tax 11,446 30,743 34,599
Total comprehensive income for the year 9,653 25,671 28,424
Gross Profit Margin (%) 17.8% 25.3% 20.2%
Net Profit Margin (%) 11.5% 18.4% 13.5%
 

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About CHerish Holdings Limited

CHerish mainly performs site formation works in Hong Kong as a subcontractor. The Group has over 14 years of experience in undertaking site formation works in Hong Kong. It provides comprehensive site formation solutions to client, which generally include general earthworks, tunnel excavation works, foundation works and road and drainage works. As part of ancillary services, it also undertakes steel fabrication and installation of steel working platform.

According to the Euromonitor Report, in 2015, the Group held an approximately 7.2% market share among site formation and clearance works subcontractors in Hong Kong.

Contacts

Stimulus Investor Relations Ltd.
Ms. Hill Ho, +852 3159 2944
hill.ho@stimulus-ir.com
or
Ms. Jessica Choi, +852 3159 2916
jessica.choi@stimulus-ir.com

Contacts

Stimulus Investor Relations Ltd.
Ms. Hill Ho, +852 3159 2944
hill.ho@stimulus-ir.com
or
Ms. Jessica Choi, +852 3159 2916
jessica.choi@stimulus-ir.com