IPO Plus - IPO

Name▼ / Code▼	Industry	Offer Price	Lot Size	Entry Fee	Closing Date	Grey Market Date▼	Listing Date▲
Shenzhen Dobot 02432.HK	Advanced hardware and software	18.8-20.8	200	4,202	2024/12/18	Data is not available	2024/12/23
Minieye Tec 02431.HK	Application Software	17-20.2	200	4,081	2024/12/20	2024/12/24	2024/12/27
Xunfei Healthcare 02506.HK	Application Software	82.8	50	N/A	2024/12/23	2024/12/27	2024/12/30
InnoScience 02577.HK	Semiconductors & Semiconductor Equipment	30.86-33.66	100	3,400	2024/12/23	2024/12/27	2024/12/30
HealthyWay 02587.HK	Health Care Services	7.8-8.8	500	4,444	2024/12/23	2024/12/27	2024/12/30

Name▼

Code▼

Industry

Offer Price

Lot Size

Entry Fee

Closing Date

Grey Market Date▼

Listing Date▲

Shenzhen Dobot
02432.HK

Advanced hardware and software

18.8-20.8

200

4,202

2024/12/18

Data is not available

2024/12/23

Minieye Tec
02431.HK

Application Software

17-20.2

200

4,081

2024/12/20

2024/12/24

2024/12/27

Xunfei Healthcare
02506.HK

Application Software

82.8

N/A

2024/12/23

2024/12/27

2024/12/30

InnoScience
02577.HK

Semiconductors & Semiconductor Equipment

30.86-33.66

100

3,400

2024/12/23

2024/12/27

2024/12/30

HealthyWay
02587.HK

Health Care Services

7.8-8.8

500

4,444

2024/12/23

2024/12/27

2024/12/30

Summary

We are a long-established lace manufacturer and dyeing service provider based in Fuzhou City, Fujian, the PRC in the textile industry. We are primarily engaged in manufacturing and sales of lace to our customers to produce branded lingerie products on order-by-order basis. For our dyeing services, our customers are mainly lace and swim wear manufacturers who would provide us with their own lace and swimwear fabrics for us to dye before further fabrication. All lace produced by our Group is dyed in-house. The dyeing process is carried out in our Fuzhou Production Facilities. We strategically focus on domestic market in the PRC which has high population with growing demand. According to the CIC Report, we ranked the sixth among all lace manufacturers in the PRC, accounting for a market share of 0.3% and ranked the fourth in the lace dyeing industry in the PRC, accounting for a market share of 1.3%, respectively, in terms of revenue in 2019. Increasingly stringent regulatory measures on environmental protection In recent years, the regulatory requirements on environment protection were increasingly stringent. In particular, according to the laws and regulations in Shantou City, which was a key area providing printing and dyeing services in Guangdong, the printing and dyeing enterprises may not extend the pollutant discharge permit after 31 December 2018 if they were located outside the industrial parks, notwithstanding there was indeed no industrial park established at that time. As a result, more than 180 printing and dyeing plants in Shantou City were shut down. The demand originally took place in Shantou City migrated to surrounding provinces and cities, including Fuzhou City, Fujian Province. Please refer to the section “Industry Overview – Migration of lace dyeing demand from Shantou City to Fujian” for details. As such, the Group recorded significant revenue growth during the Track Record Period and was primarily attributable by the regulatory factors. Unlike the laws and regulations in Shantou City, the laws and regulations in Fuzhou City explicitly stated that the printing and dyeing enterprises can remain to be located in the same area if they are not conducting business in environmental sensitive areas (i.e., not in the near proximity to residential areas, natural reserve areas, and environmental conservation areas in general). According to the confirmation issued by the Department of Ecology and Environment of Changle District, Fuzhou City on 11 March 2020, Deyun does not locate in environmental sensitive areas and is not an enterprise that seriously affects the environment, therefore Deyun can remain to operate in the same area. Also, according to the verbal confirmation made by the Division Chief of the Industry and Consumer Goods Division of the Department of Industry and Information Technology of Fuzhou City on 6 August 2020, there is no plan to force printing and dyeing enterprises to move into similar industrial park in Fuzhou City at present, the existing printing and dyeing enterprises in Fuzhou City can continue to operate legally, and there is no unified shutdown or conversion plan. However, the environmental laws and regulations in the PRC may be amended from time to time and changes in those laws and regulations may cause us to incur additional costs in order to comply with the more stringent rules. There is no assurance that the regulatory measures on environmental protection similar to those implemented in Shantou City would not be implemented in Fujian. Please refer to section headed “Risk Factors – Risks relating to our business - We as a dyeing service provider have been categorised as one of the heavily polluting industries. Any failure to comply with environmental regulations would expose us to penalties, fines, suspensions or actions in other forms” for further details. Our future business and financial performance may further subject to similar regulatory factor. The Group's sales volume of dyeing amounted to approximately 8.5 million kg, 9.7 million kg and 12.2 million kg, respectively, for each of the three years ended 31 December 2019. The sales volume of dyeing increased significantly over the three years ended 31 December 2019, primarily due to the increasing customer base as driven by the Regulatory Impact, which led to the shutting down of more than 180 printing and dyeing plants in Shantou City as at 31 December 2018 and the migration of approximately 70% of lace dyeing demand from Shantou City to Fujian in 2019 due to Regulatory Impact. Please refer to the section headed “Industry Overview – Migration of lace dyeing demand from Shantou City to Fujian” in this document for details on the Regulatory Impact. Our sales volume of dyeing decreased from approximately 6.5 million kg for 1H19 to approximately 5.7 million kg for 1H20, which was primarily attributable to the outbreak of COVID-19 since January 2020. The sales volume of lace increase from approximately 820,000 kg for FY17 to approximately 924,000 kg for FY18, primarily due to the increased customer base driven by the Regulatory Impact. The sales volume of lace decreased to approximately 802,000 kg for FY19, primarily resulted from our upward pricing adjustments on lace products accompany with change in product mix with more high density lace with higher margin. Our sales volume of lace decreased from approximately 450,000 kg for 1H19 to approximately 340,000 kg for 1H20, which was primarily attributable to the outbreak of COVID-19 since January 2020. The average selling price of dyeing has increased during the Track Record Period, primarily due to the pricing adjustment in view of the over-stretched dyeing facilities, from utilisation rate of approximately 84.9% for FY17, to approximately 100.1% for FY18, to approximately 117.9% for FY19 and approximately 117.4% for 1H20. The average selling price of lace has increased annually for the three years ended 31 December 2019, primarily due to (i) the increasing proportional sales on high density lace, and (ii) upward pricing pressure in view of the over-stretched dyeing facilities to support production of lace. Our average selling price of lace increased from approximately RMB104.9/kg for 1H19 to approximately RMB110.7/kg for 1H20, which was primarily attributable to the upward pricing pressure in view of the over-stretched dyeing facilities to support production of lace. Our overall gross profit margin increased from approximately 18.6% for FY17 to approximately 26.3% for FY18, primarily due to the combined effect of increased average selling price of dyeing leading to the increase in its respective gross profit margin, and decrease in cost of sales of lace causing its respective gross profit margin to increase from approximately 24.1% for FY17 to approximately 31.3% for FY18. The decrease in cost of sales of lace for FY18 was primarily due to the economy of scale achieved by the increased sales volume for FY18 which caused unit depreciation and other factory overheads to be lower. Our overall gross profit margin increased from approximately 26.3% for FY18 to approximately 32.9% for FY19, primarily due to the increase in our gross profit margin of dyeing from approximately 21.5% for FY18 to approximately 28.8% for FY19, which was caused by an increase in our average selling price in dyeing. Our overall gross profit margin remained at similar level of approximately 34.5% for 1H19 to approximately 33.4% for 1H20. We primarily sell our products to customers in Fujian, Guangdong and Zhejiang. We also sell our products to other parts in China, as well as engage in international trade to Hong Kong and other countries include Thailand, Vietnam, Brazil, Cambodia and Latvia. Source: Deyun Holding (01440) Prospectus (IPO Date : 2020/12/28)
Listing Market	MAIN
Industry	Textiles
Background	Others
Major Business Area	N/A

Corporate Information

Substantial Shareholders	Tsoi Wing Sing (30.83%)
Directors	Tsoi Wing Sing (Chairman and Executive Director) Lin Minqiang (Executive Director) Larry Stuart Torchin (Executive Director) Tsoi Lam Ki (Executive Director) Chow Kit Ting (Independent Non-Executive Director) Chiu Kwok Hung, Justin (Independent Non-Executive Director) Mak Ming Hoi (Independent Non-Executive Director)
Company Secretary	Xu Jing
Principal Bankers	Bank of China Limited China Merchants Bank Industrial Bank Co., Ltd Bank of China (Hong Kong) Limited
Solicitors
Auditors	Forvis Mazars CPA Limited
Registered Office	Unit 1705, 17th Floor, Strand 50, 50 Bonham Strand, Sheung Wan, Hong Kong
Share Registrars	Computershare Hong Kong Investor Services Ltd. [Tel: (852) 2862-8628]
Share Registrars Tel No	(852) 2862-8628
Internet Address	http://www.starshineholdings.com
Email Address	info@hopefaith.com
Tel No	(852) 3998-1083
Fax No	(852) 3017-6630

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