About WINSON HLDGS HK Company

The Group is a service provider headquartered in Hong Kong, specializing in the provision of environmental hygiene services and airline catering support services in Hong Kong. According to the Frost & Sullivan Report, the Group is the 6th largest environmental health service provider in Hong Kong in terms of revenue; based on total revenue from the environmental health services industry in 2015, the Group has a market share of about 3.8%. At the same time, the Group also had a market share of about 34.8% in the airline catering support service market in 2015. The total revenue for the two years ended 2015 and March 31, 2016 was approximately HK$369.2 million and HK$449.8 million respectively, while profit during the year was approximately HK$14.3 million and HK$18.8 million respectively. The directors believe that as the Group maintains its service quality and competitive advantage in the industry, the Group mainly achieves revenue and profit growth by expanding the scope of services, expanding the customer base and increasing revenue from customers. As an experienced service provider, the Group mainly provides two types of services, namely environmental hygiene services and airline catering support services. The Group began as an environmental health service provider through the registration and establishment of Yongshun Cleaning in 1983. In 1993, the Group established Prestige Pest Control Service as an independent pest control service provider. The director believes that pest control services are value-added services provided to customers in need of environmental health services. To increase the scope of the Group's business, the Group has been providing airline catering support services since 2013. This service involves (among others) handling, packaging, inspection and transportation of food or non-food items as well as providing meal packing and tray placement services for Hong Kong Airlines catering operators. Over the years, the Group has developed into one of the major integrated service providers in Hong Kong, employing 2,565 full- and part-time employees on March 31, 2016 to provide services to 890 customers, including owners and management companies of office buildings, commercial and industrial centres, residential properties, public transport operators, air catering operators, the Hong Kong Government and tenants of various properties. Furthermore, as of March 31, 2016, the Group's vehicle fleet included 28 vehicles, including trucks, trucks, aerial work platforms, trucks, private vehicles and water trucks to assist the Group in providing environmental hygiene services. The Group also implements procedures to maintain high standards of occupational health and safety, environment and quality control. The Group has been assessed and certified by SGS and complies with ISO 9001:2008 (quality management), ISO 14001:2004 (environmental management) and OHSAS 18001:2007 (occupational health and safety management) regulations. The Group maintains long-term relationships with its major customers and has an outstanding track record, demonstrating the Group's extraordinary strength. For example, the Group provided services to the five major customers (in terms of revenue) for the year ended March 31, 2016 ranged from 3 to more than 20 years, with the exception of Client D (a new customer with which the Group began a business relationship in early 2015 and became one of the top five customers in the year ended March 31, 2016). The Group's five major customers accounted for approximately 62.4% and 65.9% of the Group's revenue for each of the two years ended March 31, 2016, respectively. According to the Frost & Sullivan report, market drivers in Hong Kong's environmental services sector include (i) increased hygiene awareness due to past disease outbreaks; (ii) an increase in the number of residential, commercial and office buildings in Hong Kong; (iii) the lack of one-stop integrated service providers in the industry; and (iv) government regulations relating to environmental health management and the market drivers of the Hong Kong aviation catering support service industry include (i) increasing air passenger numbers in Hong Kong; (ii) increasing public hygiene awareness and (iii) increasing labor demand to support the rapidly growing aviation catering market (details) Please refer to the “Industry Overview — Hong Kong Environmental Health Services Industry Overview — Market Drivers” and “Industry Overview — Hong Kong Airlines Catering Support Services Industry Overview — Market Drivers” section of this document). With the existing team of cleaning personnel and the cooperative relationships established with Hong Kong customers, the directors believe that the Group has a competitive advantage in the industry, particularly in implementing large-scale projects and meeting the strict requirements of customers. The directors believe that the Group has sufficient advantages to grasp the growing demand for environmental hygiene services and airline catering support services in Hong Kong.