New Stock News | Meilian Shares Resubmits Application to Hong Kong Stock Exchange, Focus on Prefabricated Metal Building Solutions

According to the Hong Kong Stock Exchange disclosure on September 15th, Sinorich Steel Structure Construction System (Shanghai) Co., Ltd. (hereinafter referred to as Sinorich) submitted its listing application to the Hong Kong Stock Exchange main board, with Shenwan Hongyuan Group (Hong Kong) as its exclusive sponsor. The company had previously submitted its listing application to the Hong Kong Stock Exchange on February 14, 2025. According to the prospectus, Sinorich is a comprehensive prefabricated steel structure subcontracting service provider in the industrial field of prefabricated steel structure construction in the market. The company provides comprehensive services for various construction projects, covering project design and optimization, procurement, manufacturing, and installation, mainly engaged in the construction of prefabricated steel structure buildings in China (followed by overseas). Based on revenue recognition model and operational characteristics, the company's business is divided into three business categories: prefabricated steel structure subcontracting services; professional engineering general contracting; and industrial environmental protection equipment. According to the Frost & Sullivan report, based on the 2024 revenue, the company ranked third in the industrial field of prefabricated steel structure construction market in China, with a market share of 3.5%; while the market shares of the two largest participants were 35.8% and 6.5% respectively. The company's production capacity is currently supported by production facilities located in Shanghai, Suzhou in Jiangsu Province, and Jiangmen in Guangdong Province. As of the end of the years 2022, 2023, 2024, and the six months ended June 30, 2025, the capacity utilization rates of the company's prefabricated steel structure components were 128.3%, 88.1%, 101.7%, and 158.7% respectively; and the capacity utilization rates of industrial environmental protection equipment were 50.9%, 72.7%, 85.9%, and 82.7% respectively. The industrial field of prefabricated steel structure construction includes the design, production, and installation of steel building components, providing outstanding efficiency, strength, and adaptability in industrial, commercial, and residential applications. In the industrial field, prefabricated steel structure construction is particularly valued for its ability to meet the demand for large-span buildings, achieve rapid assembly and installation, and have scalability, making it the best choice for modern industrial buildings. In terms of customer dependence, a majority of the company's revenue during the performance period comes from projects awarded by major customers. The revenue from the top five customers during the performance period accounted for approximately 77.7%, 64.6%, 59.0%, and 84.0% of the total revenue for the respective years/period, while the revenue from the largest customer during the same year/period accounted for approximately 64.8%, 43.1%, 42.1%, and 61.1% of the total revenue for the respective years/period. The prospectus highlights significant risks related to the company's business and industry, including challenges such as limited market acceptance and slow popularity of prefabricated steel structure construction in the industrial field in China, which could seriously impact the financial condition, operational performance, and growth prospects. Operating in the competitive industrial field of prefabricated steel structure construction, failure to effectively compete could harm the company's business, operational performance, and financial condition. In terms of finances, the revenue of Sinorich was approximately RMB 1.903 billion, RMB 1.453 billion, RMB 1.523 billion, and RMB 1.424 billion, respectively, for the years 2022, 2023, 2024, and the six months ended June 30, 2025; and the profits for the corresponding periods were RMB 87.706 million, RMB 62.132 million, RMB 70.783 million, and RMB 62.629 million, respectively.