The Zhitong Finance app learned that according to the disclosure of the Hong Kong Stock Exchange on November 22, Shenghui Cleaning Group Holdings Limited (“Shenghui Cleaning Group” for short) passed the Hong Kong Stock Exchange main board listing hearing, and Cinda International was the exclusive sponsor.

According to the prospectus, Shenghui Cleaning Group is a cleaning and maintenance service provider in China and one of the well-known property cleaning service providers in Guangdong Province. With more than 20 years of industry experience and the advantages of being based in Guangdong Province, since its establishment in 2000, it has steadily developed its business to provide a wide range of services to more than 700 customers, and expanded its business coverage to 14 provincial regions in China.

The Guangzhou headquarters of Shenghui Cleaning Group was established in 2000 and is located in Panyu District, Guangzhou, Guangdong Province. In May 2017, the Haikou branch was established. Key projects include providing general cleaning services for Sanya Phoenix International Airport and a number of high-end residential properties in Hainan Province managed by a comprehensive enterprise group that specializes in property development and has operations in more than 200 cities in Hainan Province. In December 2020, the Chongqing branch was also established as the second branch office of the group. In May 2023, the Zhengzhou branch was established as the third sub-office of the group, and received a project from Xinzheng International Airport in Zhengzhou, which is the main airport serving the central city of Zhengzhou in Henan Province.

The company's service capabilities include providing basic cleaning and maintenance services, garbage collection and transportation services, waste collection and transportation services, water tank cleaning services and ancillary services. At the same time, specialized cleaning services such as stone cleaning and restoration, and high-altitude cleaning using mobile elevated platforms are provided.

In addition, the company serves a wide range of places, including commercial buildings, airports and other transportation hubs, residential properties, shopping malls and commercial complexes, streets, parks and other public spaces. Cleaning and maintenance services cover high-end commercial properties, such as Guangzhou International Financial Center, Guangzhou Taikoo Hui, Litong Plaza, Pearl River City Tower, Chongqing Raffles Plaza, Shenzhen Raffles Plaza; public transportation hubs, such as Chongqing Jiangbei International Airport, Guangzhou Baiyun International Airport, Zhengzhou Xinzheng International Airport, Hong Kong-Zhuhai-Macao Bridge Zhuhai Port; high-end residential properties, such as Shenzhen Bay No. 1; and shopping malls, such as Yuehui City.

According to industry reports, the environmental cleaning and maintenance services market is mainly dominated by two major sectors, namely property cleaning and public space cleaning. The overall market is very competitive, and the competitive landscape of these two sectors differs mainly due to the nature of their services. The top five market participants in 2022 (together accounting for 15.7% of the market share) are mainly working in the public space cleaning sector. Based on earnings in 2022, the group's market share in China's environmental cleaning and maintenance industry is about 0.1%.

On the financial side, as of 2020, 2021, 2022 and June 30, 2023, Shenghui Cleaning Group's revenue was approximately RMB 466 million, RMB 564 million, RMB 594 million, and RMB 298 million respectively; total profit and overall income for the yearly/period were RMB 31,312 million, RMB 39.921 million, RMB 34,389 million, and RMB 15.308 million, respectively.

Notably, Shenghui Cleaning Group mentioned that the company's project has risks such as cost overruns, reduced scope of services, and premature termination. Cost overruns can result from inaccurate cost estimates; changes in local government regulations and policies; changes in economic conditions; changes in industry trends; and other unpredictable circumstances.