Good News on Listing | Frost & Sullivan Assists Jinye International Group in Successful Hong Kong Listing (8549.HK)

Jinye International Group successfully went public on October 10, 2025, planning to issue 100 million H shares. The public offering accounted for 10%, with the issue price per share ranging from 0.45 yuan to 0.65 yuan, raising funds ranging from 45 million to 65 million yuan.

During the process of listing in Hong Kong, 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 writing of relevant parts of the prospectus (such as 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.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of June 30, 2025), from January to June 2025, and during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 29 (market share 71%), 60 (market share 67%), and 164 (market share 69%) Hong Kong stock IPOs respectively, ranking first in terms of number. It has a wealth of industry experience and communication experience with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

Mechanical and electrical engineering is a key area in the construction industry in Hong Kong. The demand for mechanical and electrical engineering services is related to the following construction tasks: (i) new construction of buildings and facilities; and (ii) maintenance, repair, renovation, and addition of existing buildings and facilities.

Mechanical and electrical engineering encompasses the design, construction, installation, testing, commissioning, operation, and maintenance of heating, air conditioning, mechanical ventilation systems, fire protection systems, piping and drainage systems, as well as electrical and ultra-low voltage systems for general buildings and special buildings (such as data centers and medical facilities, which usually have high technical specifications and requirements). Some mechanical and electrical engineering service providers also engage in the sales and engineering services of cable management systems, generator systems, uninterruptible power supply systems, electrical bus ducts, HVAC equipment, etc.

In 2024, HVAC systems engineering, electrical systems engineering, plumbing systems engineering, and fire protection services engineering accounted for approximately 74.0% of the total electromechanical engineering market. Among them, the three basic systems of HVAC, electrical, and plumbing accounted for 39.7% of the market, highlighting their key role in building infrastructure. This distribution indicates that these system engineering projects remain the pillars of the electromechanical engineering industry.

In the subfield of mechanical and electrical engineering, HVAC system engineering performed the strongest between 2020 and 2024, with a compound annual growth rate (CAGR) of 9.4%. This was due to increased demand for the modernization of old residential and commercial buildings, attention to air quality improvement during the post-pandemic period, and the integration of intelligent climate control systems. It is expected that from 2025 to 2029, the growth momentum will slow down to 7.1%, as pandemic-driven initial renovation projects end and the market shifts towards stable replacement cycles and maintenance contracts. Electrical system engineering achieved strong growth of 8.7% between 2020 and 2024, driven by stable demand for repairs and maintenance and the widespread adoption of intelligent building management systems. It is projected that from 2025 to 2029, the growth rate in this field will drop to 6.7%, reflecting the completion of major electrical modernization projects and the shift towards incremental upgrades and system optimization. Water supply and drainage system engineering grew at a rate of 6.3% between 2020 and 2024, driven by maintenance needs for old infrastructure and technological advancements in water and pipeline systems. It is expected that from 2025 to 2029, the growth rate in this field will be 3.8%, continuing to be supported by new construction activities, preventive maintenance needs, and selective upgrades of water-saving technologies.

●Modernization needs of old buildings

The old building complexes in Hong Kong are an important market driver for HVAC system maintenance, repair, renovation, and addition projects. Records for 2024 show that over 9,600 buildings are 50 years old or older, and more than 28,000 buildings are 30 years old or older. Many properties face issues such as infrastructure aging, low system efficiency, and structural wear and tear. These problems are particularly common in residential buildings (the main residence of Hong Kong's population) and commercial properties (including office buildings and retail centers, which are crucial to the urban economy). Old buildings are particularly prone to issues such as high energy consumption, unstable system performance, and increased maintenance needs, thus continuously driving demand for renovation and replacement. Many real estate developers, property owners, and property management companies prioritize renovating these buildings to enhance functionality, extend their lifespan, and improve the indoor environment to better compete with new properties. Especially in densely populated urban areas, the focus on modernizing these properties is driving continuous demand for HVAC system upgrades and related maintenance services.

● Favorable government policies and subsidies

In 2023, the third round of the 'Building Renewal Action 2.0', launched in collaboration with the Urban Renewal Authority (URA), was initiated to assist property owners of old residential and mixed-use buildings with necessary repairs, maintenance, and safety improvements. The target is buildings aged 30 years or older. Subsidies cover up to 80-100% of the repair costs for eligible self-occupied property owners, significantly reducing the financial burden on maintenance and modernization projects. This has encouraged property owners to address long-delayed upgrades, especially HVAC systems, which are crucial for functionality and tenant safety, thereby driving growth in the HVAC system engineering market.

● Enhancement of indoor air quality awareness and related plans

The awareness of Indoor Air Quality (IAQ) is becoming an important market driver in Hong Kong, driven by recent regulatory updates, public health priorities, and urban sustainable development goals. The Environmental Protection Department (EPD) has played a key role in promoting IAQ improvement through its indoor air quality certification programs for offices and public places. As of 2023, more than 2,100 sites have obtained IAQ certification, a 25-fold increase compared to when the program was launched in 2003. The updated IAQ targets that came into effect in 2024 tightened requirements for pollutants such as carbon monoxide, inhalable suspended particulate matter, radon gas, and nitrogen dioxide, and added mold as an assessment parameter. These stricter standards have led to a surge in demand for HVAC system upgrades, advanced air filtration technology, and compliance consulting, especially in old buildings and high-traffic public places. This momentum has been further strengthened by the increasing popularity of green building labels such as Building Environmental Assessment Method Plus (BEAM Plus) and Leadership in Energy and Environmental Design (LEED), prompting developers and property managers to adopt IAQ-focused solutions, including energy-efficient ventilation systems and real-time air quality monitoring, to improve tenant satisfaction, enhance the environment, social, and governance (ESG) performance, and maintain competitiveness, thereby creating more market opportunities for HVAC system upgrades and maintenance. In addition, the ESG disclosure requirements of the Hong Kong Stock Exchange force listed property groups to measure and report building-level energy use and IAQ data, providing clear financial and reputational incentives for their property management departments to install real-time monitoring equipment, upgrade ventilation systems, and implement energy-saving measures. These factors have collectively driven the expansion of the HVAC system upgrade, advanced air filtration technology, and related maintenance and consulting service markets. The COVID-19 pandemic in Hong Kong from 2020 to 2023 highlighted the important role of effective ventilation systems in reducing airborne pathogens in high-density spaces, driving demand for upgrades to advanced building systems such as HEPA filters, UV-C disinfection, and intelligent ventilation technology. This has prompted organizations to adopt stricter ventilation protocols and retrofit outdated systems, providing HVAC service providers with opportunities to offer enhanced retrofit, maintenance, and real-time monitoring solutions. Driven by the increased awareness of IAQ following the COVID-19 pandemic, the market value of HVAC system projects grew from HK$988.3 million in 2020 to HK$146.52 billion in 2024, with a compound annual growth rate (CAGR) of 10.3%. It is expected to grow from HK$156.62 billion in 2025 to HK$208.92 billion in 2029, with a CAGR of 7.5% from 2025 to 2029.

● Renovation of optimized functional spaces in commercial buildings

In Hong Kong, many old commercial properties, including offices, shopping centers, and mixed-use development projects, require significant upgrades to HVAC systems to adapt to new space designs, improve energy efficiency, and meet IAQ standards. Real estate developers or property management companies often initiate functional space optimization renovation projects involving the upgrade or replacement of inefficient HVAC systems to better support reconfigured layouts, such as open offices, expanded retail spaces, or multifunctional facilities. Optimized HVAC systems are crucial for ensuring consistent airflow, temperature control, and energy conservation, especially in buildings with aging infrastructure. In addition, the integration of intelligent HVAC technology and energy-saving systems is becoming a common trend to reduce operating costs and improve building performance. The market value of HVAC system projects driven by the optimization of commercial building functional spaces increased from HK$1.1404 billion in 2020 to HK$1.6449 billion in 2024, with a compound annual growth rate of 9.6%. It is expected to grow from HK$1.7403 billion in 2025 to HK$2.3027 billion in 2029, with a compound annual growth rate of 7.3% from 2025 to 2029.

●Impact of COVID-19 on ventilation and building systems

The COVID-19 outbreak in Hong Kong from 2020 to 2023 highlighted the importance of maintaining effective ventilation systems to reduce airborne transmission of pathogens, especially in high-density spaces such as offices, schools, hospitals, and shopping malls. This has driven significant demand for enhanced building systems, including the installation of HEPA filters, UV-C disinfection technology, and intelligent ventilation solutions that optimize airflow and monitor environmental conditions in real time. To address the growing health and safety concerns, many organizations have implemented stricter ventilation protocols and upgraded outdated systems to meet modern performance standards. These developments have provided HVAC service providers with opportunities to offer advanced retrofitting, maintenance, and real-time monitoring technologies.

As of September 20, 2025, according to the Subcontractor Registration Scheme of the Hong Kong Construction Industry Council, there are 691 registered subcontractors engaged in HVAC system projects in Hong Kong. Based on the scale and method of project undertaking, market participants can be roughly divided into three categories:

1. HVAC professional contractors, usually first-level subcontractors or equipment suppliers, mainly undertake comprehensive HVAC projects directly subcontracted by general contractors of mechanical and electrical engineering, real estate developers, or the government. Due to their large project scale, these contracts often involve substantial funds, and professional contractors typically further subdivide the work and subcontract it to different subcontractors.

2. HVAC subcontractors typically participate in the construction of new residential buildings, renovation, and maintenance projects of HVAC systems. Most of them undertake projects from primary subcontractors, thus relying relatively on their relationships with upstream contractors.

3. Medium and small-scale air-conditioning service providers mainly focus on HVAC renovation projects. In the residential market, there are numerous such suppliers, resulting in a relatively fragmented competitive landscape.

The number of HVAC professional contractors, HVAC subcontractors, and small to medium-sized air-conditioning service providers cannot be accurately determined for the following reasons:

• There are no specific licensing requirements that explicitly categorize companies into these three categories, making it challenging to obtain an exact number from regulatory databases or official sources;

   

• The boundaries between these categories are fluid rather than fixed. Companies typically operate in multiple areas based on project opportunities and market conditions. For example, professional contractors may undertake subcontracting work during market downturns, while subcontractors may bid as main contractors on small projects. Similarly, air-conditioning service providers may expand into broader HVAC contracting businesses based on their capabilities and market demand, or contract back down to providing maintenance services;

   

• The dynamic nature of the industry means that any static quantitative statistics will soon become obsolete and may be misleading. Companies often adjust their business models and service offerings based on market conditions, making classification an ever-changing goal.

Overall, the competition in the HVAC engineering market in Hong Kong is fierce and fragmented. HVAC projects of the government and large developers are usually controlled by a few leading contractors. To further consolidate their market position, existing participants need to continuously improve project quality and efficiency, strengthen brand building and customer relationship management, and enhance their pricing advantage.

It is estimated that the total market share of the top five participants in the Hong Kong HVAC system engineering market in 2024 will be about 26.8%. The group's share in the overall HVAC system engineering market in 2024 will be about 1.3%, and its share in the HVAC system engineering market for existing buildings and infrastructure in Hong Kong will be about 1.9%.