Company Overview - Shenzhen Hongye Jiyuan Geotechnical Technology Co., Ltd. (referred to as Hongye) has submitted its listing application to the Hong Kong Stock Exchange, with Guangyin International as its sole sponsor [1] - This marks the second attempt by Hongye to list on the Hong Kong Stock Exchange, having previously submitted an application in April 2025 after an unsuccessful A-share IPO in 2021 [1] Financial Performance - Hongye's revenue for the years 2022, 2023, and 2024 is reported as RMB 1.228 billion, RMB 1.112 billion, and RMB 1.011 billion respectively, with gross profits of RMB 190 million, RMB 210 million, and RMB 240 million [1][3] - For the first nine months of 2025, the company reported revenue of RMB 780 million, a slight decrease of 2% from RMB 795 million in the same period of the previous year, while net profit increased to RMB 60.99 million from RMB 58.55 million [2][3] Market Analysis - The geotechnical engineering market in China has grown from RMB 870.8 billion in 2020 to an estimated RMB 952 billion by 2024, reflecting a compound annual growth rate (CAGR) of 2.3% [4] - The market is expected to recover and grow due to a rebound in infrastructure and real estate investments, with projections indicating a market size of RMB 1.3049 trillion by 2029, representing a CAGR of 6.5% from 2025 to 2029 [4] Shareholder Structure - The controlling shareholder of Hongye is Chen Zhidong, who directly holds 35.65% of the shares, while his spouse, Wang Fengmei, holds an indirect stake of 2.96% [5] - Together, Chen and Wang control 38.61% of the company, with other significant shareholders including Hongye Investment and Hongbin Investment [5]

Core Viewpoint - Shenzhen Hongye Jiyuan Geotechnical Technology Co., Ltd. has submitted its second listing application to the Hong Kong Stock Exchange, with Guangyin International as its sole sponsor [1] Company Overview - The company has over 23 years of experience in geotechnical engineering services in South China since 2002, focusing on pile foundation engineering, excavation engineering, and mixed support engineering [3] - It is recognized as the largest non-state-owned geotechnical engineering company in South China by revenue in 2024, with a market share of 1.9% among non-state-owned enterprises involved in large geotechnical projects [3][4] - The company has received multiple awards, including being recognized as one of Shenzhen's top 500 enterprises from 2019 to 2024 and as a high-tech enterprise [3] Industry Overview - The Chinese geotechnical engineering industry is characterized by a fragmented competitive landscape, with state-owned enterprises holding approximately 74% of the market share and non-state-owned enterprises accounting for about 26% [4] - Non-state-owned enterprises are increasingly taking on high-value projects, and their market share is expected to grow as market reforms and technological innovations continue [4][10] Financial Performance - The company's revenue for the fiscal years 2022, 2023, 2024, and the first nine months of 2025 were approximately RMB 1.228 billion, RMB 1.112 billion, RMB 1.011 billion, and RMB 780 million, respectively [6] - The profit for the same periods was RMB 47.48 million, RMB 56.68 million, RMB 75.67 million, and RMB 60.99 million [7] - The gross profit margins for these periods were 15.5%, 18.9%, 23.7%, and 25.6% [8] Market Growth - The Chinese geotechnical engineering market is projected to grow from RMB 870.8 billion in 2020 to RMB 952 billion in 2024, with a compound annual growth rate (CAGR) of 2.3% [10] - The non-state-owned geotechnical engineering market is expected to grow from RMB 216 billion in 2020 to RMB 247.5 billion in 2024, with a CAGR of 3.5% [12] - The market for large geotechnical engineering projects is anticipated to reach RMB 234.9 billion by 2029, with a CAGR of 8.6% from 2025 to 2029 [13]