MAIYUE TECHNOLOGY LIMITED ANNOUNCES DETAILS OF PROPOSED LISTING ON MAIN BOARD OF THE STOCK EXCHANGE OF HONG KONG LIMITED

Author: MAIYUE TECHNOLOGY LIMITED / 2023-09-28 11:25 / Source: MAIYUE TECHNOLOGY LIMITED

MAIYUE TECHNOLOGY LIMITED ANNOUNCES DETAILS OF PROPOSED LISTING ON MAIN BOARD OF THE STOCK EXCHANGE OF HONG KONG LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code:2501.HK)

GLOBAL OFFERING OF 125,000,000 SHARES

(SUBJECT TO THE OVER-ALLOTMENT OPTION)

HONG KONG PUBLIC OFFER OF 12,500,000 SHARES (SUBJECT TO REALLOCATION)

INTERNATIONAL PLACING OF 112,000 SHARES (SUBJECT TO REALLOCATION ANDOVER-ALLOTMENT OPTION)

OFFER PRICE BETWEEN HK$1.05 AND HK$1.40 PER OFFER SHARE

TO RAISE UP TO APPROXIMATELY HK$175.0 MILLION

Investment Highlights

The Group is an integrated IT solutions services provider in the education and government IT solutions markets in Guangxi with an operating history of over 20 years,with its services being categorised into 3 segments,being (i) integrated IT solutions services; (ii) sales of hardware and/or software; and (iii) standalone IT services

The Group has completed more than 300 projects of different scales across a majority of the cities in Guangxi during the Track Record Period. For the years ended 31 December 2020,2021 and 2022 and the four months ended 30 April 2023,the Group's revenue generated from services provided to customers in the education sector accounted for 82.8%,57.2%,81.3% and 83.8% of its total revenue,respectively

With the Group's long established and reputable operating track record,the Group manages to develop its reputation among customers in the education and government IT solutions markets in Guangxi. The Group has developed and maintained business relationship with various education institutions in Guangxi,for example,Guangxi University (廣西大學),being one of the largest education institutions in Guangxi,and Wuzhou University (梧州學院) for more than ten years

Profit for the year attributable to equity shareholders of the Group amounted to RMB39.4 million,RMB46.0 million and RMB48.8 million for the years ended 31 December 2020,2021 and 2022,respectively; The Group's net profit margin was 19.0%,22.9% and 20.2% for the corresponding years

Net current asset has increased from RMB82.2 million as at 31 December 2020 to RMB221.3 million as at 31 December 2022

The Group is led by an experienced management team,who has substantial experience in,and in-depth knowledge of,the IT industry in the PRC. In particular,Mr. Li Changqing,executive Director,chief executive officer and Chairman,has over 20 years of experience in the IT industry; Ms. Deng Caidie,executive Directors and deputy general manager,and Mr. Zhang Guangbai,executive Directors and director of Technology,also possess over 15 and 10 years of experience in the IT industry (both with over 10 years of experience with the Group),respectively

The Group has received various awards and certificates,and obtained certificates of "Guangxi Zhuang Autonomous Region Enterprise Technology Centre" (廣西壯族自治區企業技術中心) issued by government authorities including Guangxi Zhuang Autonomous Region Industry and Information Commission (廣西壯族自治區工業和信息化委員會) and "Capability Maturity Model Integration (CMMI) Development v1.3 Maturity Level 3" issued by CMMI Institute. The Group was also awarded the "Leading Enterprise in Digitalised Campus (Guangxi)" (智慧校園(廣西)領軍企業) from Guangxi Smart City Research Association (廣西智慧城市研究會) in 2019,and "Top 100 High and New Technology Enterprises in Guangxi" (廣西高新技術企業一百強) from Association of High and New Technology Enterprises in Guangxi (廣西高新技術企業協會) for two consecutive years in 2019 and 2020

HONG KONG,Sept. 28,2023 -- MAIYUE TECHNOLOGY LIMITED together with its subsidiaries (the "Group" or "Maiyue Technology"; Stock Code: 2501.HK),an integrated IT solutions services provider in the education and government IT solutions markets in Guangxi with an operating history of over 20 years,today announced details of its proposed listing on Main Board of The Stock Exchange of Hong Kong Limited.

A total of 125,000 Shares (subject to the Over-allotment Option),comprising the Hong Kong Public Offer of 12,000 Shares (subject to reallocation) and the International Placing of 112,000 Shares (subject to reallocation and the Over-allotment Option),are expected to be offered at a price range of HK$1.05 to HK$1.40 per Offer Share. The Group will raise up to approximately HK$175.0million from the Global Offering. The Hong Kong Public Offer will begin on Thursday,28 September 2023 and close at noon on Wednesday,4 October 2023. The allotment results will be announced on Tuesday,10 October 2023. Trading of the Shares will begin on Wednesday,11 October 2023 in board lots of 2,000 Shares eachnder the stock code 2501.

Quam Capital Limited is the Sole Sponsor,and Quam Securities Limited is the Sole Overall Coordinator,Joint Global Coordinator,Joint Bookrunner and Joint Lead Manager.

ABCI Capital Limited,BOCOM International Securities Limited,China Galaxy International Securities (Hong Kong) Co.,Limited,CMB International Capital Limited,Guotai Junan Securities (Hong Kong) Limited,Zhongtai International Securities Limited are the Joint Global Coordinators,Joint Bookrunners and/or Joint Lead Managers (as the case may be). CMBC Securities Company Limited,Eddid Securities and Futures Limited,Innovax Securities Limited,Valuable Capital Limited and Yue Xiu Securities Company Limited are the Joint Bookrunners and Joint Lead Managers.

About the Group

The Group is an integrated IT solutions services provider in the education and government IT solutions markets in Guangxi with an operating history of over 20 years. The Group primarily focuses onthe provision of customised integrated IT solutions services to customers in the education sector primarily offline formal public education institutions,for the purpose of digitalised campus development. In particular,the Group aims to utilise technologies in its products and services to assist education institutions to open up and connect different departments,functions and facilities of campus in a single platform,realising the integration and utilisation of data from multiple sources,which improves the overall campus experience and effectiveness of teaching and learning.

The Group is principally engaged in the (i) provision of integrated IT solutions services; (ii) sales of hardware and/or software; and (iii) provision of standalone IT services to its customers. The Group takes pride in its ability to provide customised integrated IT solutions services to its customers. The Group's integrated IT solutions services include (i) design of integrated IT solutions accommodating the specific requirements of its customers; (ii) development of solution-based application systems and sourcing of suitable hardware,software and equipment; (iii) implementation of integrated IT solutions including construction,integration and upgrade of IT infrastructure and systems; and/or (iv) provision of technical and maintenance supporting services. For the years ended 31 December 2020,a majority of the Group's revenue was generated from the provision of integrated IT solutions services,which accounted for 91.5%,83.9%,81.6% and 57.6% of the Group's total revenue,respectively. For the years ended 31December 2020,the revenue generatedfrom services provided to customers in the education sector accounted for 82.8%,81.3%and 83.8% of the Group's total revenue,respectively; and the Group's revenue generated from services provided to customers in the government sector accounted for 11.5%,31.6%,3.7% and 2.4% of the Group's totalrevenue,respectively.

With the Group's long established and reputable operating track record,and Wuzhou University (梧州學院) for more than ten years. According to the F&S Report,the Group had a market share of 1.3% and 0.08% in the education IT solutions market and the government IT solutions market in Guangxi,respectively,in terms of revenue in 2022.

Profit for the year attributable to equity shareholders of the Group amounted to RMB39.4 million,respectively. The Group's net profit margin was 19.0%,22.9% and 20.2% for the corresponding years. Net current asset has increased from RMB82.2 million as at 31 December 2020 to RMB221.3 million as at 31 December 2022.

The Group is led by an experienced management team,has over 20 years of experience in the IT industry. Executive Directors,Ms. Deng Caidie and Mr. Zhang Guangbai,respectively.

Over the years,the Group also received various awards and certificates in recognition of its quality services and achievements. The Group obtained certificates of "Guangxi Zhuang Autonomous Region Enterprise Technology Centre" (廣西壯族自治區企業技術中心) issued by government authorities including Guangxi Zhuang Autonomous Region Industry and Information Commission (廣西壯族自治區工業和信息化委員會) and "Capability Maturity Model Integration (CMMI) Development v1.3 Maturity Level 3" issued by CMMI Institute. The Group was also awarded the "Leading Enterprise in Digitalised Campus (Guangxi)" (智慧校園(廣西)領軍企業) from Guangxi Smart City Research Association (廣西智慧城市研究會) in 2019,and "Top 100 High and New Technology Enterprises in Guangxi" (廣西高新技術企業一百強) from Association of High and New Technology Enterprises in Guangxi (廣西高新技術企業協會) for two consecutive years in 2019 and 2020.

Mr. Li Changqing,chief executive officer and Chairman,said,"By obtaining the listing status,our reputation and financial strength will be further enhanced as a competitive edge over our competitors,thereby driving the business and expanding our foothold in the education IT solutions market in Guangxi in order to capture the growth potential. We believe the Group is able to grasp the future growth of the market. We are well-prepared to continue to seize new business opportunities and create long-term shareholder value."

Financial Highlights

RMB'000

Year ended 31 December

Four months ended 30 April

2020

2021

2022

(Unaudited)

2023

Revenue

207,074

201,742

243,255

7,996

8,641

Gross Profit

75,373

98,879

104,631

1,314

1,653

Profit/(loss) for the year/period attributable to equity shareholders

of the Company*

39,438

45,978

48,774

(19,502)

(16,676)

*The Group recorded losses in the first four months mainly due to the fact that the Group's customers generally carry out the tendering process and project execution from the second quarter and the third quarter of the year respectively,and user acceptance tests are generally carried out in the fourth quarter of the corresponding year,resulting in a majority of revenue being recognised in the fourth quarter of the year.

Offering Summary:

Total number of Global Offering Shares

125,000 Shares (subject to the Over-allotment Option)

Number of Hong Kong Offer Shares

12,000 Shares (subject to re-allocation)

Number of International Placing Shares

112,000 Shares (subject to re-allocation and the Over-allotment Option)

Proposed Offer Price range

HK$1.05 to HK$1.40 per Offer Share

Board lot

2,000 Shares

Hong Kong Public Offer begins