Hong Kong IPO disclosure precedents · 24 companies, 24 items
Disclosures of tender win numbers, bid success rates, or conversion of design wins/tenders into purchase orders, particularly where rates declined period-on-period.
In 2020, 2021 and 2022, we submitted a total of 20, 18 and 25 tender bids for projects developed by independent third-party property developers, respectively, and our relevant bidding success rate for the same years was approximately 55.0%, 44.4% and 40.0%, respectively.
Business · p. 219
Our Directors believe that the decrease in the bidding success rate for projects developed by independent third-party property developers in 2021 was primarily due to our refined tender strategy to tender for higher quality communities, and that all these tenderees were new customers whom we only have brief understanding of their preferences and needs.
Business · p. 219
In 2020, 2021 and 2022, we submitted nine, 12 and ten tenders for projects developed by the Remaining Zhong An Group or its joint ventures and associates, respectively, and our relevant bidding success rate for the same years was 100%, 100% and 100%, respectively.
During the Track Record Period, number of contracts awarded to us through tendering remained relatively stable, whereas there was decrease in our tender success rate for customised marketing solution.
Business · p. 258
This was mainly because we received increased tender invitations, but we tend to focus on projects with relatively higher profit margin.
For the period from 1 November 2022 to the Latest Practicable Date, we recorded a tender success rate of approximately 3.2%. Our tender success rates may continue to decline until our financial resources and workforce capacity for undertaking new contracts improve after Listing such that we can submit more competitive tenders.
Summary · p. 12
In relation to our relatively lower success rate for the year ended 30 June 2022 and the four months ended 31 October 2022, this was mainly because we were awarded fewer contracts as tenders we submitted were less competitive in general compared to prior years/periods with the limits to our available financial resources and workforce.
In FY2019, FY2020, FY2021 and 3Q2022, we submitted 114, 172, 102 and 180 tender documents, respectively, and the number of projects awarded to us were 32, 33, 26 and 20 respectively, and our tender success rates were approximately 28.1%, 19.2%, 25.5% and 11.1%, respectively.
Business · p. 227
We believe that (i) the decrease in tender success rate from approximately 28.1% in FY2019 to approximately 19.2% in FY2020 was mainly because we were focusing on projects with larger contract sum in FY2020 compared to FY2019; (ii) the increase in tender success rate from approximately 19.2% in FY2020 to 25.5% in FY2021 was mainly because we are more selective in submitting tenders, and focus on quality instead of quantity of the tender proposals; and (iii) the decrease in tender success rate in 3Q2022 was due to our focus on projects with larger contract sum, which are usually subject to keener competition, in 3Q2022 compared to 3Q2021.
Business · p. 227
Subsequent to the Track Record Period and up to the Latest Practicable Date, we have continued to focus on construction contracting business, in which we have submitted 112 tender documents and have been awarded 17 projects, representing a tender success rate of approximately 15.2%.