Good News on Listing | Frost & Sullivan Assists Zhongtian Construction (Hunan) Group Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (2433.HK)

Zhongtian Construction (Hunan) Group Co., Ltd. (hereinafter referred to as 'Zhongtian Hunan Group') successfully went public on March 30, 2023, with a global issuance of 120 million shares at a price of HK$1.18 per share.

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, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), 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.

The company is a well-known general contracting construction group with over 40 years of operating history in Hunan Province;

The company has six first-class construction qualifications;

The company continuously provides standardized engineering construction services and high-quality building products;

The company has strategic synergies with highly trusted industrial partners that drive industry development;

The company has a management team that shares a common mission and is highly visionary.

According to the Frost & Sullivan report, in terms of construction revenue for 2021, the company:

It is one of the top ten non-state-owned construction enterprises in Hunan Province, with a market share of about 0.2%;

Ranked fifth among non-state-owned construction enterprises in Hunan Province with first-class general contracting qualifications, with a market share of about 0.4%;

It is one of the fastest-growing general contracting construction group enterprises in China.

Total output value and growth rate of China's construction industry

classified by contractor qualification levelForecast from 2016 to 2026

According to the classification of construction objects, building types can be divided into civil buildings, industrial buildings, transportation infrastructure, municipal engineering, and other buildings. According to a Frost & Sullivan report, civil buildings mainly include commercial buildings, residential buildings, and industrial buildings. Industrial buildings mainly include warehouses, factories, mines, foundries, etc. Transportation infrastructure mainly includes highways, railways, bridges, and other transportation infrastructure. Municipal engineering mainly includes urban roads, power supply, water supply, etc. Other buildings mainly include agricultural construction projects such as grain and feed processing stations, livestock and poultry farms, etc.

In all project works, civil building construction occupies a dominant position in the market, increasing from 1308.07 billion yuan to 1795.07 billion yuan, with a compound annual growth rate of 6.5%. It is expected that the total output value of civil building construction will grow by 5.8%, from 1892.12 billion yuan in 2022 to 2372.90 billion yuan in 2026.

According to a Frost & Sullivan report, from 2016 to 2021, the output value of first-tier general contractors in Hunan Province accounted for a large portion of the market share. The 'Several Measures to Assist Construction Enterprises in Overcoming Difficulties and Promoting Stable Economic Growth' jointly issued by 11 government departments including the Hunan Provincial Department of Housing and Urban-Rural Development in November 2022, established a set of specific policies to support the construction industry in Hunan, promoting sustainable growth. It is expected that by 2026, the overall market scale of the construction industry in Hunan Province will reach 2,134.9 billion RMB, with a compound growth rate of 10.2% from 2022 to 2026; among them, first-tier general contractors are expected to maintain their dominant market position, with a scale of 1,427.6 billion RMB predicted for 2026, and a compound growth rate of 11.3% from 2022 to 2026.

According to a Frost & Sullivan report, encouraged by the improvement of old urban areas proposed in the Outline of the 13th Five-Year Plan for National Economic and Social Development of Zhuzhou City, the construction output value of Zhuzhou increased rapidly from 623 billion yuan in 2016 to 1103 billion yuan in 2021, with an annual compound growth rate of 12.1%. General contractors at the first level and above hold a dominant position in Zhuzhou. During the period from 2016 to 2021, the city's annual compound growth rate increased at the fastest pace, rising from 310 billion yuan to 585 billion yuan.

In 2021, the top 15 enterprises in Hunan Province's construction industry accounted for only about 4.7% of the total construction output value, presenting a decentralized competitive landscape. In 2021, Zhongtian Construction ranked ninth among non-state-owned construction enterprises in Hunan Province, accounting for 0.2% of the total construction output value.

According to a Frost & Sullivan report, in 2021, Zhongtian Construction accounted for 1.6% of the total output value of non-state-owned construction industries in Zhuzhou City, ranking first among non-state-owned construction enterprises in the city.

Frost & Sullivan has extensive research experience in the construction industry, assisting well-known enterprises in successfully listing on capital markets. Successful listings include: GC Construction (1489.HK), Fengcheng Holdings (2295.HK), Yinghui Holdings (2195.HK), Zhi Xin Group (2187.HK), Guanglian Engineering (1413.HK), Dehe Group (0368.HK), Raffles Interior (1376.HK), New Wei Engineering (8676.HK), Yinglan Group (1162.HK), Jianzhong Construction (0589.HK), Shengxing Holdings (1472.HK), Weny Group (1802.HK), Deyi Holdings (9900.HK), Tailin Construction (6193.HK), Fengcheng Holdings (8216.HK), WMCH Global (8208.HK), Hua Ji Global (2296.HK), Wan Ya Enterprise Holdings (8173.HK), China Tianbao (1427.HK), Beng Soon (1987.HK), Yuanda Residential Construction (2163.HK), Anle Engineering (1977.HK), Kun Group (924.HK), Pujiang International (2060.HK), Lejias Holdings (1867.HK), Weihong Group Holdings (8522.HK), Pipeline Engineering (1865.HK), Hon Corp (8259.HK), Hengyi Holdings (1894.HK), Bao Yan Holdings (8601.HK), Aobang Construction (1615.HK), Renhe Technology (8140.HK), Wanshun Group (1746.HK), Liang Zhitian (2262.HK), Tangji (8305.HK), Rongfeng Group Asia (8526.HK), Deyi Holdings (8522.HK), Aoneng Construction (1183.HK), Yingde Holdings (8535.HK), Hengyu Group (2448.HK), WT Group (8422.HK), Jianpeng Holdings (1722.HK), Hebei Construction (1727.HK), Shouyi Holdings (2227.HK), Yinglan Group (8470.HK), Yikang Tai (8445.HK), Wantong Garden (8199.HK), Haobo International (8431.HK), Progressive Development (1667.HK), Yungmeng Development (8423.HK), ECI Technology (8013.HK), Shanle International (1660.HK), Li's Enterprise Holdings (2266.HK), Aishuo Holdings (8341.HK), Aidewei Construction (6189.HK), Kuangwenji (8023.HK), Fengsheng Electromechanical (0331.HK), Kono Weide (1206.HK), Red Star · Midea (1528.HK).