HONG KONG, Jan. 11, 2016 /PRNewswire/ -- The largest construction company in Jiaxing, Zhejiang Province in terms of output value in 2014, Jujiang Construction Group Co., Ltd. ("Jujiang Construction", together with its subsidiaries, the "Group"; stock code: 1459), announced subscription results for its Share Offer. The Hong Kong Public Offering recorded 4.96 times over-subscribed. The Offer Price per share has been set at the mid-point of the offer price range at HK$1.35 per share. Dealing in Jujiang Construction's shares on the Mainboard of the Hong Kong Stock Exchange will commence on 12 January 2016 (Tuesday).
A total of 133,360,000 H shares will be offered under the Global Offering, of which 120,024,000 H Shares, or 90% will be offered by way of International Offering. The remaining 10%, or 13,336,000 H Shares, will be offered under the Hong Kong Public Offering. Based on the Offer Price of HK$1.35 per Offer Share, the net proceeds from the Share Offer (after deducting underwriting fees and estimated expenses in connection with the Share Offer) is estimated to be approximately HK$167.8 million.
Guotai Junan Capital Limited is the Sole Sponsor of the Global Offering. Guotai Junan Securities (Hong Kong) Limited is the Sole Global Coordinator, Sole Bookrunner and Sole Lead Manager of the Global Offering.
Mr. Lv Yaoneng, Chairman, Executive Director and General Manager of Jujiang Construction, said, "We are honored that investors have shown great support in Jujiang Construction. We believe the response is the market's recognition of the Group's business and confidence in our future prospects. Looking forward, we strive to capitalize on the international financing platform in Hong Kong, in order to continue to capture greater market share in Zhejiang province and in other provinces and regions in China, as well as expand our presence overseas to become a leading construction contracting and design company in selected regions."
Established in 1965, Jujiang Construction is one of the earliest construction companies in Jiaxing. The Group is principally engaged in construction contracting business. It also provides design, survey and consultancy services to customers, as well as manufactures civil defense products. According to Ipsos, Jujiang Construction was the largest construction company in Jiaxing, Zhejiang Province in terms of output value in 2014, holding a market share of 10.4%.
Construction Contracting Business
The Group is principally engaged in undertaking construction projects as a general contractor, in which it performed all major aspects of the construction project, including building construction, foundation works, curtain wall construction, building decoration and fire proofing projects. During the Track Record Period, the Group completed a total of 550 construction projects, including residential construction projects, commercial construction projects, industrial construction projects and public works construction projects. The Group's construction projects were mainly located in Zhejiang Province, others were located in Jiangsu, Anhui, Shandong and Liaoning Provinces.
A substantial majority of the Group's revenue was generated from this segment. For the years ended 31 December 2012, 2013 and 2014, and the six months ended 30 June 2015, revenue generated from this segment amounted to RMB3,266.8 million, RMB4,052.8 million, RMB4,258.5 million and RMB2,132.0 million respectively.
Other Businesses
Leveraging its experience in the construction contracting business, the Group also provides design, survey and consultancy services to its customers. Jujiang Construction is one of the few companies in Jiaxing holding the Grade A Engineering Design Certificate (Construction Industry), which allows it to provide design, survey and consultancy services for building construction projects of any scale in China.
In April 2014, the Group received the license to manufacture civil defense products from OCAD. The Group manufactures civil defense products at its Jiaxing Production Facility. The Group mainly manufactures heavy duty construction-related structures, such as protective doors and protective valves that protect against radioactive materials, thermal radiation, toxic biological and chemical agents and high temperatures.
Financial Highlights
| For the year ended 31 Dec |
For the 6 months ended 30 Jun |
||||
| (RMB million) |
2012 |
2013 |
2014 |
2014 |
2015 |
| Revenue |
3,269.8 |
4,072.1 |
4,289.3 |
1,818.1 |
2,139.8 |
| Gross Profit |
167.9 |
202.2 |
229.7 |
91.2 |
110.1 |
| Profit before tax |
68.0 |
92.4 |
116.8 |
49.8 |
61.6 |
| Total comprehensive income for the year/period |
46.7 |
60.7 |
82.8 |
35.4 |
45.5 |
| Gross Profit Margin |
5.1 |
5.0 |
5.4 |
5.0 |
5.1 |
About Jujiang Construction Group Co., Ltd.
The Group is principally engaged in construction contracting business. It also provides design, survey and consultancy services to customers, as well as manufactures civil defense products. The Group is principally engaged in undertaking construction projects as a general contractor. During the Track Record Period, the Group completed a total of 550 construction projects, including residential construction projects, commercial construction projects, industrial construction projects and public works construction projects. The Group's construction projects were mainly located in Zhejiang Province, others were located in Jiangsu, Anhui, Shandong and Liaoning Provinces. According to Ipsos, Jujiang Construction was the largest construction company in Jiaxing, Zhejiang Province in terms of output value in 2014, holding a market share of 10.4%.
