Hong Kong, August 28, 2024 /PRNewswire/ -- Guangdong Jixing National Control Testing and Certification Technology Service Center Co., Ltd. (referred to as 'Jixing National Control') (8629.HK) began selling 10.179 million shares on August 26, 2024, with an offering price ranging from HKD 8.6 to HKD 10.4 per share and a total fundraising amount of approximately HKD 96.7 million, based on a median offering price of HKD 9.5. Each lot consists of 500 shares, and the entrance fee is HKD 525,244. The offering period will end on September 3, and it is expected to be listed on the GEM board of The Stock Exchange of Hong Kong on September 6.

The prospectus reveals that the proceeds from this fundraising will be mainly used for four purposes: first, approximately 37.4% of the funds will be used to expand the testing service sector to achieve service diversification; second, approximately 27.7% of the funds will be used to consolidate the existing market and expand the market scope, and improve market share; third, approximately 27.5% of the funds will be used to expand construction engineering testing services and enhance the company's competitiveness; finally, approximately 5.5% of the funds will be used to upgrade the ERP system to support future long-term development, and the remaining 1.9% of the funds will be used for general operating expenses to support the company's daily operations and development needs.

Established in 2000, Jixing National Control is headquartered in Maoming City, Guangdong Province, China, and is a provider of construction engineering testing and inspection services. The company focuses on providing testing services for foundation foundations, infrastructure and public roads, building materials, and building structures, as well as technical services such as slope monitoring and foundation pit monitoring. Since May 2024, it has also provided food testing services. As of August 2024, the company has obtained qualifications for 39 categories of construction engineering, products and materials testing, environmental testing, food testing, and agriculture-related testing services approved by the Guangdong Provincial Administration for Market Regulation.

According to the Insight Consulting report, Jixing National Control's technology and service level in the field of construction engineering testing is among the best in the western part of Guangdong Province. In 2023, the company's net profit was 13.25 million yuan, with a gross margin of 71.8% and a net profit margin of 31.9%. During the same period, revenue increased by 107.9% year-on-year. In the first six months of 2024, the company's net profit was 7.34 million yuan, with an overall gross margin of 70.8% and a net profit margin of 32.2%. During the same period, revenue increased by 39.8% year-on-year. According to the dividend policy disclosed in the prospectus, Jixing National Control intends to distribute dividends to shareholders on an annual basis, with a minimum dividend payout ratio of 20% of the after-tax distributable profit, while maintaining the company's operational capital health.