New stock news | Huihe Environmental Passes Hong Kong Stock Exchange Hearing with Dependency on Top Five Customers Exceeding 80%

According to the disclosure on December 22 by the Hong Kong Stock Exchange, Shanghai Huige Environmental Protection Technology Group Co., Ltd. (hereinafter referred to as "Huige Environmental Protection") conducted a hearing through the Hong Kong Stock Exchange, with CITIC SEC and China Galaxy International acting as its joint sponsors. The prospectus shows that Huige Environmental Protection is a provider of China CSSC environmental protection equipment and systems, serving customers worldwide. According to data from Frost Sullivan, as of December 31, 2023, based on the total number of completed orders and accumulated order volume for ship exhaust gas purification systems, the company ranks third among China CSSC exhaust gas purification system providers and fourth among all ship exhaust gas purification system providers globally. According to Frost Sullivan data, the global market for ship environmental protection equipment and systems increased from $753 million in 2017 to $3.102 billion in 2023, with a compound annual growth rate of 26.6%, and is expected to increase to $11.384 billion by 2028, with a compound annual growth rate of 29.7% from 2023 to 2028. The company believes that its equipment, systems, and business can benefit from the potential growth of the global ship environmental protection equipment and systems market. During each year or period of the past performance period, the company's ship desulfurization system (mainly including ship exhaust gas purification systems) contributed most of the company's revenue, accounting for approximately 78.7%, 64.7%, 66.8%, 79.9%, and 60.7% of the total revenue in 2021, 2022, 2023, and the six months ended June 30, 2024, respectively. In addition, during each year or period of the past performance period, a significant portion of the company's revenue came from a few customers. For the years ending December 31, 2021, 2022, 2023, and the six months ended June 30, 2024, the company's top five customers accounted for approximately 90.5%, 76.1%, 84.3%, and 89.4% of the total revenue, respectively. In terms of finances, the company's revenue was approximately 141 million, 267 million, 510 million, and 336 million RMB in 2021, 2022, 2023, and up to June 30, 2024, respectively. During the same periods, the net profits were 12.769 million, 36.777 million, 121 million, and 82.082 million RMB, respectively.