上市捷报丨沙利文助力升辉清洁集团控股有限公司成功赴港上市(2521.HK)

Shenghui Cleaning Group Holdings Limited (Stock Code:2521.HK) on2023year12month5The company successfully logged onto the Hong Kong Capital Market Main Board today. It is a comprehensive environmental cleaning and maintenance service provider in China, as well as one of the well-known property cleaning service providers in Guangdong Province. The company engages in professional cleaning and maintenance services, garbage collection and transportation services, waste collection and transportation services, water tank cleaning, and other services. Its business scope covers China.14A provincial-level region. Frost & SullivanFrost & Sullivan,Frost & Sullivan, referred to below as the 'Independent Market Consultants', provides exclusive industry advisory services for the listing of Shenghui Cleaning Group Holdings Limited. We hereby extend our warmest congratulations on its successful listing.

Shenghui Cleaning Group Holdings Limited (hereinafter referred to as 'Shenghui Cleaning') was incorporated on2023year12month5The company plans to go public on the 1st of July4.14100 million sharesHstocks, among which90%For international distribution,10%For public offering. The final issue price is RMB per share.0.32HK$, net proceeds of approximately7,350HK$10,000,000.

During the Hong Kong listing process, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, uncovering, supporting, and highlighting the issuer's competitive advantages through objective market data analysis, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.

Investment highlights

The company leverages over20With years of industry experience and leveraging the advantages of Guangdong Province, we provide comprehensive one-stop cleaning services to customers. Our business scope has expanded to cover China.14Provincial-level region;

The company serves a wide range of locations, including commercial buildings, transportation hubs such as airports, residential properties, shopping malls and commercial complexes, streets, parks, and other public spaces;

One of the leading property cleaning service providers in Guangdong Province, with a high brand awareness;

The company can provide a variety of cleaning and maintenance services, and has strong capabilities to support a comprehensive service portfolio;

The company has a diversified customer base, with major clients including Wealth Global500Strong property developers and real estate companies;

The company is committed to managing risks and adopts a rigorous quality, safety, and environmental management system.

According to a report by Frost & Sullivan, by2022Company's annual revenue scale:

Ranked first among property cleaning service providers in Guangdong Province, China;

Ranked first among commercial property cleaning service providers in Guangdong Province, China.

Overview of China's Environmental Cleaning and Maintenance Service Market

Environmental cleaning and maintenance services are a type of service that improves the overall health level of the environment by using water, cleaning agents, equipment, and any other resources for effective cleaning, disinfection, and maintenance. Environmental cleaning and maintenance services refer to cleaning and maintenance including commercial, household, and environmental areas, which can be divided into three main types: property cleaning, public space cleaning, and other cleaning. Public space cleaning mainly includes public health cleaning services, also known as municipal sanitation. Each main type contains three service subtypes or fields: general cleaning, waste management, and other services. General cleaning refers to the cleaning and maintenance of areas or surfaces; waste management refers to waste collection, disposal, and transportation; other services refer to any extended services beyond the first two types.

Public space cleaning refers to the cleaning carried out in any urban and rural public areas open to the public (excluding properties), such as streets, public squares, parks, and beaches. Property cleaning refers to the cleaning services provided within the affiliated areas of facilities (such as buildings, parking lots, gardens, and public spaces). Properties refer to comprehensive property categories, including residential, commercial, public, industrial, government-related properties, shopping centers, schools, hospitals, airports, etc. Other cleaning includes cleaning services provided in areas that are not part of properties or public spaces, waste collection and transportation, as well as value-added services, including road construction and maintenance, and property reservoir cleaning.

The China environmental cleaning and maintenance market is mainly composed of property cleaning and public space cleaning segments. Driven by the demand for public services and the increasing public health awareness, the total market size is expected to grow from2018Renminbi in [year]2,707RMB 100 million increased to2027Renminbi in [year]6,228Yuan. Among them, due to the increasingly complex requirements for property cleaning, property management groups, tenants, and property owners have an increasing demand for professional cleaning services. The increasing demand for property cleaning services further drives market growth, and the scale of the property cleaning market is expected to grow from2018Renminbi in [year]713RMB 10 billion has increased significantly to2027Renminbi in [year]1,654yuan. Yu2018Year-end2022The compound annual growth rate of the annual property cleaning market scale is10.3%, reflecting the stable growth of the overall market, with expectations at2023Year-end2027The year will continue with stable growth, with a compound annual growth rate of8.8%Yu2018Year-end2022The compound annual growth rate of the total annual market scale is10.3%; during the forecast period,2023Year-end2027The compound annual growth rate for the year is8.9%.

Source: Frost & Sullivan report

Guangdong Province Environmental Cleaning and Maintenance Services

As one of the regions with the fastest economic development and growth in China, Guangdong Province has seen significant growth in its urbanization level and urban population over the past five years. With the increase in the number of urban streets, facilities, and property buildings in the urban area, there will be a further increase in Guangdong Province's demand for environmental cleaning and maintenance services. The market scale for property and public space cleaning in Guangdong Province is from2018Renminbi in [year]322RMB 100 million increased to2022Renminbi in [year]535yuan, with a compound annual growth rate of13.6%The growth of the property cleaning sector is mainly based on the development of the real estate market in Guangdong Province in recent years. Driven by the rapid local economic development, there is an urgent demand for related cleaning services.

It is expected that the total market scale of Guangdong Province will continue to grow in the future, from2023Renminbi in [year]601RMB 100 million increased to2027Renminbi in [year]956yuan, with a compound annual growth rate of12.3%Due to the continuous increase in local government support for public service procurement, the market scale of the public space cleaning sector will still account for a large proportion of the market share. In contrast, the property cleaning sector in Guangdong Province is2018Year-end2022There was a significant year-on-year increase, with a compound annual growth rate of10.7%, and is expected to be2023Year-end2027The annual compound growth rate maintained in12.8%The growth momentum.

Source: Frost & Sullivan report

Guangdong property cleaning and commercial property cleaning

Market competition landscape

The market competition for property cleaning and commercial property cleaning services in Guangdong Province is fierce. The property cleaning industry in Guangdong has experienced a period of stable development, but market competition is still intense. Compared with the national environmental cleaning and maintenance service market, Guangdong Province is a key region for industry development, and its rapid growth mainly stems from the growth of the property cleaning sector. There are many major providers in the market specializing in property cleaning services, mostly independent third-party service suppliers providing cleaning services nationwide.

Overview of the Property Cleaning Market Competition in Guangdong Province

The property cleaning industry in Guangdong Province is highly competitive, with the top five industry participants accounting for a significant proportion of the market size.15.7%Among the five major market participants, Shenghui Clean ranked first, with a market share of5.7%.

Overview of the Market Competition in Commercial Property Cleaning Services in Guangdong Province

The competitive landscape of commercial property cleaning in Guangdong Province is similar to that of the property cleaning market in the province. Most participants in the commercial property cleaning market focus on providing commercial property services to complement the significant growth potential of the commercial property sector.

In the commercial property cleaning market of Guangdong Province, the five major industry participants account for only a fraction of the total market size in this sector19.3%Among the five major market participants, Shenghui Clean ranked first with a market share of7.3%.

Key market drivers for environmental cleaning and maintenance in China

Urbanization drives market growth

With the gradual improvement of the national urbanization level, the development scope of related cities has rapidly increased in recent years. Therefore, urbanization construction has brought about a significant demand for residential and commercial property cleaning, urban street cleaning, waste transportation and management, public facilities and utility system cleaning, as well as environmental cleaning and maintenance services in other urban areas. Most property owners and government departments choose to outsource their cleaning needs to companies with a mature industrial chain and professionals, further driving the growth demand for environmental cleaning and maintenance service providers.

· Service demand continues to grow

Environmental cleaning and maintenance services are an essential part of public health and cleanliness and maintenance conditions. As the number of residential, commercial, and various other properties has continued to increase in recent years, downstream users of the industry chain (including large property management groups and government departments) have issued a large number of environmental cleaning and maintenance projects. Due to the typically high expertise and service quality standards of these projects, large property management groups and Chinese government departments choose to outsource service needs to third-party companies, which can complete cleaning service projects with higher efficiency and quality.

· The complexity and requirements of cleaning services are escalating

With the improvement of living standards, awareness of hygiene, and the growth of the property market, public expectations for environmental cleanliness and maintenance are increasing day by day. Environmental cleaning and maintenance service providers continuously expand their service scope and quality to offer a wider range of services to customers, thereby meeting their needs and requirements. In addition, the ability to provide comprehensive environmental cleaning and maintenance services can save customers time and cost by reducing the need for them to hire different service providers.

View the full prospectus

Frost & Sullivan has extensive research experience in the property development industry, assisting well-known enterprises in successfully listing on the capital market. Successful listings include: Runhwa Living Services (2455.HK), All Things in the Cloud2602.HK), Suixin Good Life2152.HK), DCEC Property Investment2270.HK), China Resources Wanhua Life1209.HK), Excellence Business Enterprise6989.HK), Mingyuan Cloud0909.HK), Baolong Commercial9909.HK), China Tianbao1427.HK), Yincheng Life Services1922.HK), FangduoduoNASDAQ:DUO), Xinyuan Technology Services1895.HK), Zhongzhijian HoldingsNASDAQ:CIH), Lejias Holdings1867.HK), Aoyuan Health3662.HK), Chuangyi Holdings3992.HK), Jiazhao Property (2168.HK), Bao Yan Holdings8601.HK), Hengyu Group2448.HK), Yajuyu Investment Holdings8426.HK), Red Star Macalline1528.HK) etc.