IPO Plus - IPO

Name▼ / Code▼	Industry	Offer Price	Lot Size	Entry Fee	Closing Date	Grey Market Date▼	Listing Date▲
S.F. Holding 06936.HK	Air Freight & Logistics	32.3-36.3	200	N/A	2024/11/22	2024/11/26	2024/11/27
Jiuyuan Gene 02566.HK	Biotechnology - Medical Devices	11.48-12.56	200	N/A	2024/11/25	2024/11/27	2024/11/28
Mokingran 02585.HK	Watch & Jewellery	12-14.4	200	N/A	2024/11/26	2024/11/28	2024/11/29

Name▼

Code▼

Industry

Offer Price

Lot Size

Entry Fee

Closing Date

Grey Market Date▼

Listing Date▲

S.F. Holding
06936.HK

Air Freight & Logistics

32.3-36.3

200

N/A

2024/11/22

2024/11/26

2024/11/27

Jiuyuan Gene
02566.HK

Biotechnology - Medical Devices

11.48-12.56

200

N/A

2024/11/25

2024/11/27

2024/11/28

Mokingran
02585.HK

Watch & Jewellery

12-14.4

200

N/A

2024/11/26

2024/11/28

2024/11/29

Summary

We are the leading and a fast-growing project management company for property development projects in China in terms of the aggregate GFA sold in 2020 and the CAGR for total contract sales amount for projects under our management from 2017 to 2020, according to China Index Academy. As a project management service provider, we manage property development projects on behalf of Project Owners throughout the entire property development process, and operate under an asset-light business model without bearing the land acquisition and construction costs. In 2020, our projects under management recorded an aggregate GFA sold of approximately 5.7 million sq.m., representing a market share of 29.2%, and the CAGR of total contract sales amount from 2017 to 2020 was 71.5%, both of which ranked No.1 among all of our peers in China. In addition, our newly contracted GFA in 2020 achieved 8.6 million sq.m., which ranked No. 2 amongst all project management companies in China and account for a market share of 10.6%, according to China Index Academy. We are well positioned to benefit from the fast growing PRC project management industry, which is driven by rapid urbanization in the PRC, the demand for quality property development and the development of the PRC real estate market. We experienced a rapid growth of our business during the Track Record Period, with the number of projects and GFA managed by us increasing from 67 and 11.5 million sq.m. as of January 1, 2018 to 206 and 25.5 million sq.m. as of December 31, 2020. We strategically focused on Henan province, the largest province in China in terms of registered population in 2019. According to China Index Academy, the potential size of the commercial project management market in Henan province is expected to increase from approximately 29.7 million sq.m. in 2020 to approximately 62.8 million sq.m. in 2025, representing a CAGR of 16.2%. As of December 31, 2020, out of our 206 projects under management, 193 of which were in Henan province with an aggregate GFA of approximately 24.2 million sq.m. which covered a vast majority of cities in Henan province of the county-level or above. We devote ourselves to penetrating into Henan province with strong demand for quality property development and trustworthy project management services providers. Specifically, we focus on identifying real estate development projects in counties and county-level cities, and to a lesser extent, in prefecture-level cities or above. Deeply rooted in Henan province, our newly contracted GFA in Henan province reached 7.7 million sq.m., the aggregate GFA sold by us for our Project Owners in Henan province reached 5.5 million sq.m. and our contract sales amount reached RMB33.1 billion, each ranked No.1 in Henan province in 2020, according to China Index Academy. Leveraging our well established platform, we have also expanded our operations into Hebei, Shanxi, Shaanxi, Xinjiang, Anhui and Hainan provinces and autonomous region to pursue greater growth potential. We are committed to providing services and bringing value to our Project Owners and operate under an asset-light business model. As a result, Project Owners are responsible for the land acquisition cost and the funds needed for the project development and construction, thereby minimizing our capital requirement. During the Track Record Period and as of the Latest Practicable Date, we provided our project management services solely to commercial project management projects, and substantially all of the projects under our management were for the development of residential properties. We provide comprehensive and professional solutions to manage and optimize the entire property development and operation process for the Project Owners and create value for our Project Owners by developing high quality properties in a cost-effective manner. We allow our Project Owners to use the ‘‘Jianye (建業)’’ brand for promoting and marketing the properties in the development projects managed by us. Leveraging the well-recognized ‘‘Jianye (建業)’’ brand, the real estate projects managed by us generally have a higher standard of quality and enjoy a premium on selling price, and our Project Owners are entitled to the proceeds received from their investments in relevant projects. In consideration for the project management services we provide to Project Owners throughout each stage of the property development and operation process, we receive management fees from the Project Owners according to pre-agreed terms, which typically include, (a) base management fees based on the type, location, size and price level of the properties; and (b) incentive fees based on the sales performance. Our base management fees are determined based on the fixed fee rate agreed between Project Owners and us and are typically paid by Project Owners in installments with reference to the pre-agreed milestones and/or the sales proceeds payment arrangement of the respective projects. On the contrary, our incentive fees are contingent upon whether the sales price of projects under our management exceed the targeted price level agreed by Project Owners and us. In 2018, 2019 and 2020, base management fees contributed to 84.5%, 85.6% and 94.5% of our revenue while the remaining portion was contributed by our incentive fees. All projects under our management are directly managed by us, which ensures the consistent high quality of our services and enhances our operating efficiency. We do not delegate our projects to third party project management service providers. The management team of the project companies primarily comprises of personnel we second to the project companies that serves key functions of the project company covering design, construction, finance, sales, procurement etc. We are highly involved in the contractor/vendor selection and procurement process, and may recommend quality third-party contractors, design firms and suppliers in our network to the Project Owners who will enter into construction agreements, service agreements or supply agreements directly with such third party vendors. Personnel costs incurred by our employees seconded to the project companies are generally paid by the Project Owners to our seconded employees directly. According to China Index Academy, such arrangement is a common industry practice, and our PRC Legal Advisors are of the view that such arrangement does not violate applicable PRC laws and regulations. We do not recognize such expenses as our personnel cost, nor do they form part of our management fees or revenue. During the Track Record Period and up to the Latest Practicable Date, we did not have any material non-compliance incident. Our rapid growth during the Track Record Period was primarily driven by the strong demand for quality project management services and the wide market recognition of the ‘‘Jianye (建業)’’ brand in the Henan province, which led to significant increases in number of projects under our management and our revenue. We believe our self-operated business model, our focus on commercial project management, our cost efficiency resulted from economies of scale and geographic proximity and our pricing power supported by standardized and transparent fee rates have enabled us to achieve high profit margin. Source: Central China Mgt (09982) Prospectus (IPO Date : 2021/05/18)
Listing Market	MAIN
Industry	Property Development
Background	Others
Major Business Area	N/A

Corporate Information

Substantial Shareholders	Wu Po Sum (47.64%)
Directors	Wu Po Sum (Chairman and Non-Executive Director) Hu Bing (Executive Director) Chen Aiguo (Executive Director) Duan Juwei (Executive Director) Xu Ying (Independent Non-Executive Director) Liu Dianchen (Independent Non-Executive Director)
Company Secretary	Ho Wing Nga
Principal Bankers	Bank of China Limited China Everbright Bank Industrial and Commercial Bank of China (Asia) Limited Bank of China (Hong Kong) Limited
Solicitors	Conyers Dill & Pearman Hogan Lovells
Auditors	Prism Hong Kong Limited
Registered Office	Units 1602-1605, th Floor, Tower 2, The Gateway, Harbour City, 25 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong
Share Registrars	Computershare Hong Kong Investor Services Ltd. [Tel: (852) 2862-8628]
Share Registrars Tel No	(852) 2862-8628
Internet Address	http://www.centralchinamgt.com
Email Address	ir@centralchinamgt.com
Tel No	(86 371) 8659-8173
Fax No

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