New Stock News | Chuangli International files for listing on the Hong Kong Stock Exchange GEM, primarily engaging in dismantling projects as a main contractor in Hong Kong.

According to the Hong Kong Stock Exchange's disclosure on August 25, Chao Li International Holdings Limited (hereinafter referred to as "Chao Li International") has submitted a listing application to the HKEX GEM, with Baihui Capital Limited serving as its sole sponsor. Company Overview According to the prospectus, Chao Li International primarily engages in demolition works as a general contractor in Hong Kong. During the track record period, Chao Li International also undertook various other construction works, such as maintenance and repair projects, rectification works, improvement works, and site maintenance works. Chao Li International (along with its predecessor, Wai Yeung Engineering Company, established in 1989) has accumulated over 35 years of operating history in the Hong Kong construction industry. The projects undertaken by Chao Li International are mainly contracted by Wai Yeung Engineering, which is its main operating subsidiary established in Hong Kong. According to the Frost & Sullivan report, the group ranked fifth and third in terms of revenue for the years 2024 and 2025 respectively, with market share increasing from approximately 3.0% in 2024 to approximately 4.9% in 2025. During the track record period, demolition works were the primary source of revenue for the group, accounting for approximately 93.2%, 93.6%, 96.6%, and 86.3% of the total revenue for the fiscal years 2025 and 2026, as well as the first three months of 2025 and 2026 respectively. When undertaking projects, Chao Li International generates revenue from: (i) contract revenue, which is the fees paid by clients for the services provided by the group; and (ii) in the case of certain demolition projects, the proceeds from the disposal of recycled materials obtained by recycling the demolished site to third-party material buyers. In terms of clients, during the track record period, the group's clients mainly included (i) private sector project owners, primarily private property developers, and (ii) material buyers, mainly companies engaged in trading recycled materials. Financial Information Revenue In the fiscal year 2025, 2026 fiscal year, and the first three months of 2026, the company achieved revenues of approximately HKD 77.28 million, HKD 137 million, and HKD 43.19 million respectively. Profit and Total Comprehensive Income for the Year/Period For the fiscal year 2025, 2026 fiscal year, and the first three months of 2026, the company recorded total profit and comprehensive income of approximately HKD 8.649 million, HKD 24.231 million, and HKD 9.443 million respectively. Gross Profit In the fiscal year 2025, 2026 fiscal year, and the first three months of 2026, the company recorded gross profits of approximately HKD 19.041 million, HKD 39.401 million, and HKD 14.831 million respectively. Industry Overview According to data from the Hong Kong Census and Statistics Department, the total value of construction works undertaken by main contractors increased from HKD 233.7 billion in 2021 to HKD 287.5 billion in 2025, representing a compound annual growth rate of 5.0% from 2021 to 2025. The industry faced challenges during the period from 2020 to 2021 due to the aftereffects of social turmoil and the COVID-19 pandemic, which led to (i) disruptions and slowdowns in construction activities, and (ii) interruptions in the global supply chain affecting raw material supplies, subsequently causing project delays and a decline in new projects. Since 2022, with the support of a rebound in activities from both public and private sectors, the recovery has accelerated. The Hong Kong government continues to promote future growth through major infrastructure developments, including the ongoing advancement of the Northern Metropolis and the Lantau Tomorrow Vision, along with related transport, housing, and public works plans. Despite a recent slowdown in private sector activities and economic headwinds in 2025, it is anticipated that these major projects will sustain and drive construction output in the medium to long term. The total value of construction works undertaken by major contractors is expected to increase from HKD 300.4 billion in 2026 to HKD 357.9 billion by 2030, with a compound annual growth rate of 4.5%. From 2026 to 2030, it is expected that the total value of demolition works carried out by major contractors in Hong Kong will continue to rise, increasing from an estimated HKD 2.835 billion in 2026 to HKD 3.8284 billion in 2030, with a forecasted compound annual growth rate of 7.8%. This continued growth is expected to benefit from ongoing large-scale infrastructure and new development projects (such as the flood gateway and other Northern Metropolitan area plans), ongoing urban renewal, and increased emphasis on sustainable demolition practices (including waste recycling). Board Information The board comprises six directors, including two executive directors, one non-executive director, and three independent non-executive directors. Shareholding Structure According to the confirmation of concerted action, the controlling shareholder group will consist of Heng Tai (co-owned by Mr. Lau Gin, Ms. Mak Wai-chan, Mr. Lau Shao-ka, and Mr. Lau Shao-tong), Cheng Ye (owned solely by Mr. Lau Chao-pui), Mr. Lau Chao-pui, Mr. Lau Gin, Ms. Mak Wai-chan, Mr. Lau Shao-ka, and Mr. Lau Shao-tong. Intermediary Team Sole Sponsor: Baihui Capital Limited Company Legal Advisors: Howden Law Firm, Harney Westwood & Riegels Sole Sponsor Legal Advisors: Guangdong Huashang (Hong Kong) Law Firm Joint Auditors and Reporting Accountants: Tianjian Deyang CPA Limited, Deloitte Touche Tohmatsu CPA Limited Compliance Advisor: Baihui Capital Limited Industry Advisor: Frost & Sullivan Limited