Yuk Wing Group Holdings Limited Announces Subscription Results

Recorded around 1.1 times over-subscription for Public Offering

HONG KONG--()--Yuk Wing Group Holdings Limited (“Yuk Wing”, together with its subsidiaries, the “Group”; stock code: 1536), a leading manufacturer and supplier of DTH rockdrilling tools in Hong Kong in 2015, announces subscription results for its Share Offer. The Hong Kong Public Offering recorded around 1.1 times over-subscribed. The Offer Price per share has been set at the upper-end of the offer price range at HK$1.15 per share. Dealing in Yuk Wing’s shares on the Main Board of The Stock Exchange of Hong Kong will commence on 11 January 2017 (Wednesday).

A total of 100,000,000 shares is offered under the Public Offer. Based on the Offer Price of HK$1.15 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$88 million.

Octal Capital Limited is the Sole Sponsor. Opus Capital Limited, Supreme China Securities Limited and Octal Capital Limited are the Joint Bookrunners and Joint Lead Managers of the Public Offer.

Mr. Kenneth Leung Choi Chan, Chairman, Chief Executive Officer and Executive Director, of Yuk Wing, said, “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 both local and overseas DTH rockdrilling tools market, by further investing in new manufacturing facility and research and development activities, as well as increasing manpower.”

Yuk Wing is the leading manufacturer and supplier of DTH rockdrilling tools in Hong Kong. The Group provides technical rockdrilling solutions for use in building foundation and piling on construction sites, mining and quarrying, water well drilling, utility linings, micro-tunneling and overburden drilling in a variety of geological formations and at considerable depths. A majority of the equipment and machinery which the Group supplies to customers are self-designed DTH rockdrilling tools which the Group manufactures, and the rest are sourced from third parties for the customers depending on their rockdrilling needs.

During the Track Record Period, whilst a substantial portion of the Group’s revenue has been generated from direct sales of its products to customers in Hong Kong and Macau, an increasing portion of the Group’s revenue has been generated from exports of DTH rockdrilling tools through overseas distributors in Finland and Japan.

For the three years ended March 31, 2016 and the three months ended June 30, 2016, revenue of the Group amounted to HK$150.6 million, HK$126.6 million, HK$141.7 million and HK$27.8 million, while profit for the year attributable to owners of the Company amounted to HK$18.9 million, HK$21.1 million and HK$27.0 million, respectively and loss attributable to owners of the Company for the three months ended June 30, 2016 amounted to HK$3.0 million.

According to the Frost & Sullivan Report, the Group is the leading manufacturer and supplier of DTH rockdrilling tools in Hong Kong, with a market share in Hong Kong by revenue of 59.2% in 2015. The Group has a diversified customer base of over 130 customers, including certain foundation companies listed on the Hong Kong Stock Exchange.

Financial Highlights

    Year ended March 31   3 months ended June 30
HK$’000     2014   2015   2016   2016
Revenue 150,571   126,620   141,744 27,778
Gross Profit 51,764 54,352 63,221 12,673
Profit (loss) before tax 29,864 31,691 42,906 (823)

Profit (loss) for the year attributable to
owners of the Company

18,887

21,141

26,974

(2,969)

Gross Profit Margin (%) 34.4% 42.9% 44.6% 45.6%
Net Profit Margin (%) 16.7% 20.8% 25.6%* 25.5%*

*Adjusted for listing expenses

About Yuk Wing Group Holdings Limited

Yuk Wing is the leading manufacturer and supplier of DTH rockdrilling tools in Hong Kong. It provides technical rockdrilling solutions for use in building foundation and piling on construction sites, mining and quarrying, water well drilling, utility linings, micro-tunneling and overburden drilling in a variety of geological formations and at considerable depths. A majority of the equipment and machinery which the Group supplies to its customers are its self-designed DTH rockdrilling tools which its manufactures, and the rest are sourced from third parties for customers depending on their rockdrilling needs.

According to the Frost & Sullivan Report, the Group is the leading manufacturer and supplier of DTH rockdrilling tools in Hong Kong, with a market share in Hong Kong by revenue of 59.2% in 2015. During the Track Record Period, the Group had over 130 customers, including certain foundation companies listed on the Hong Kong Stock Exchange.

Contacts

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