New stock news | Jingwei Tian Di San Du Express Hong Kong Stock Exchange as the network support and information communication technology integration service provider for China Telecom Corporation.

According to the disclosure on November 10th by the Hong Kong Stock Exchange, Jiawei Tianhe Holdings Limited (referred to as Jiawei Tianhe) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CASH and EDH Financial as joint sponsors. The company had previously submitted listing applications to the main board of the Hong Kong Stock Exchange on June 29th, 2022 and April 28th, 2023, respectively. The prospectus shows that Jiawei Tianhe is a supplier of China Telecom Corporation's network support and information and communication technology (ICT) integrated services. During the historical period, the company engaged in (i) telecommunications network support services, including wireless telecommunications network optimization services and maintenance and engineering services for telecommunications network infrastructure; (ii) ICT integrated services; and (iii) telecommunications network software development services. In 2022, the company's revenue from wireless telecommunications network optimization services, maintenance and engineering services for telecommunications network infrastructure, ICT integrated services, and telecommunications network software development services accounted for approximately 0.8%, 0.01%, 0.03%, and 2.5% of the Chinese related industry market share in the same year, respectively. The number of applications and successful bids submitted by the company under each business line is as follows: Jiawei Tianhe's customers can be roughly divided into (i) telecommunications operators; (ii) telecommunications network equipment manufacturers; (iii) telecommunications network and technology service providers and contractors; and (iv) others. During the historical period, the company mainly undertook projects in the following ways: (i) the company directly obtained the entire project or part of the project from telecommunications operators and other end clients; or (ii) as a general contractor, the company received projects from project owners and split them into multiple sub-projects or engineering works, and then the general contractor assigned one or more relevant sub-projects or engineering works to the company. During the historical period, the revenue contributed by customers who were end clients accounted for a large proportion of the total revenue, and whether the company conducted business as a contractor or subcontractor did not have a significant impact on the company's operations or service standards. In terms of financials, Jiawei Tianhe's revenue for the fiscal years 2020, 2021, 2022, and the six months ended 2022 and 2023 were approximately RMB 196 million, RMB 203 million, RMB 227 million, RMB 103 million, and RMB 114 million, respectively. During the same periods, the net profits realized were RMB 29.66 million, RMB 25.52 million, RMB 24.26 million, RMB 9.37 million, and RMB 14.65 million, respectively. It is worth noting that Jiawei Tianhe mentioned in the prospectus that the company is unable to manage the cash flow mismatch issue caused by significant initial project costs that have been incurred but cannot be recovered, which may harm the company's financial condition and prospects and create liquidity or inability to repay debt risks.