On July 23, Junyu Engineering Co., Ltd. Primega Group Holdings Limited (hereinafter referred to as 'Junyu Engineering') listed on Nasdaq with stock code PGHL. The company's issue price was $4 per share, and the first day of listing saw a 5.5% increase in stock price to $4.22 per share, with a total market capitalization of $101 million.

Junyu Engineering is a transportation service provider that adopts eco-friendly practices and aims to promote the reuse of construction and demolition materials to reduce construction waste. The company's main business is in Hong Kong, and usually provides services to other construction contractors in Hong Kong as a subcontractor.

The company mainly handles the transportation of excavation materials at construction sites, including soil and rock transport services, diesel trading, and architecture engineering (primarily including ELS engineering and drilling piles).

In terms of performance, in the fiscal years ending March 31, 2022 and 2023, Junyu Engineering's revenues were approximately $10.4831 million and $11.1431 million, respectively, and the corresponding net income was $1.9936 million and $1.1673 million, respectively. Although the company's revenue increased in fiscal year 2023, its net income decreased year-on-year.

It is worth noting that a large part of Junyu Engineering's revenue comes from a small number of customers, and the company's customers are mainly sub-contractors for foundation and land leveling projects in Hong Kong's property development and civil engineering projects. In fiscal years 2022 and 2023 (ending March 31), the combined revenue from these four customers A, B, C, and D accounted for more than 70% of the company's revenue, a relatively large proportion, which poses a concentration risk of customers.

Junyu Engineering has not signed any long-term service agreements with its customers and cannot guarantee to retain customers after the contract expires. If the major customers reduce their purchases of the company's products in the future, it may affect the company's business performance.

Prior to this issuance, Mr. Man Siu Ming held an 80.4% stake in Junyu Engineering, and after the issuance, his shareholding ratio was 74.3%. Mr. Man Siu Ming is the chairman of the board of directors of the company and has accumulated more than 11 years of experience in Hong Kong's civil engineering industry, specializing in construction transportation, logistics, and infrastructure-related construction projects.

In this listing, Junyu Engineering plans to use approximately 35% of the net proceeds from this issuance to expand its existing business by acquiring additional machinery and equipment, including dump trucks and excavators, and hiring additional employees; approximately 20% will be used to upgrade information technology systems so that the company can track the location and deployment of trucks to improve resource allocation and efficiency; and the remaining funds will be used for working capital and other general company purposes.