Investment Highlights:

- Our vision is to become a pioneer in the construction industry and lead the direction and standards of industry development.

- Our mission is to maintain the best performance in safety, health, environment and quality in the industry.

- Our goal is to consolidate our market position, expand our market share, and seize growth opportunities in Hong Kong's construction industry.

- With over 18 years of extensive experience in Hong Kong's civil and electrical engineering industries, Wing Lee has participated in sizeable infrastructure projects including the Third Runway Projects at the Hong Kong International Airport, a village sewerage project at Mui Wo in respect of road and drainage works, and electrical cable engineering works for the CLP Group.  The Company is the largest power cabling and civil pipeline installation subcontractor in Hong Kong in 2023.

- Highly experienced management team, includes the two founders who have more than 26 and 18 years of experience in the industry, respectively, and are responsible for the overall management, formulation of business strategies and development, as well as the Company’s environmental protection and sustainable development process.

- Has its own workforce and abundant machinery and equipment, providing flexibility to undertake sizable infrastructure projects, reducing the reliance on subcontractors or suppliers and maintaining its competitiveness of pricing.

- Imposes a stringent quality control and high safety standard and environmental impact control.

- Grasps the trends of sustainable development in Hong Kong, started deploying solar PV system business as early as in 2019.

- Distributor of electric construction machinery of China Wealth Hong Kong Machine Limited, a fellow subsidiary of SANY Heavy Industry Co., Ltd* (a company listed on the Shanghai Stock Exchange) and Sany Heavy Equipment International Holdings Company Limited (a company listed on the Hong Kong Stock Exchange)

- For the year ended 31 March 2024, the Company’s revenue and net profit climbed year-on-year by 45.7% and 89.6%, respectively.

HONG KONG, Sept 27, 2024 - (ACN Newswire) - Wing Lee Development Construction Holdings Limited (" Wing Lee " or " Company", together with its subsidiaries, the “Group”)), a new generation construction industry leader, announced today its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (the “HKEX”).

Wing Lee plans to offer 250,000,000 Shares (subject to the over-allotment option), of which, 90% are for placing (subject to reallocation and the over-allotment option), and the remaining 10% will be for public offer (subject to reallocation), with an offer price range of HK$0.57 to HK$0.73 per Share (subject to downward offer price adjustment where the offer price will be HK$0.513 per Share). Assuming an offer price of HK$0.65 per Share, being the mid-point of the offer price range, and after deducting the underwriting fees, commissions and estimated expenses in relation to the share offer, the net proceeds from the share offer is estimated to be approximately HK$130.5 million.

The public offer will commence on 27 September 2024 (Friday) and end at noon on 4 October 2024 (Friday). The allotment results will be announced no later than 8 October 2024 (Tuesday). Trading of Wing Lee’ Shares will commence on 9 October 2024 (Wednesday) under the stock code of 09639. The shares will be traded in board lots of 5,000 shares each.

Alliance Capital Partners Limited is the Sole Sponsor and Overall Coordinator of the share offer, while Alliance Capital Partners Limited, China Galaxy International Securities (Hong Kong) Co., Limited, CMBC Securities Company Limited, ABCI Capital Limited, Haitong International Securities Company Limited and China Industrial Securities International Capital Limited are the Joint Bookrunners. ABCI Securities Company Limited, Cinda International Capital Limited, Phillip Securities (Hong Kong) Limited, Futu Securities International (Hong Kong) Limited, ZMF Asset Management Limited, Gaoyu Securities Limited and Livermore Holdings Limited are the Joint Lead Managers. The Cornerstone Investors include Sany Hongkong Group Limited, Accel Group Holdings Limited and The Triplex Holdings Limited.

BUSINESS OVERVIEW

The Group is an established contractor in Hong Kong engaged in civil and electrical cable engineering and solar PV system works. With over 18 years of extensive experience in Hong Kong's civil and electrical engineering industries, the Group provides comprehensive and high-quality construction services. In terms of civil engineering works, the Group specializes in site formation works and road and drainage works. For electrical cable engineering works, the Group specializes in cable trenching, laying and jointing works. For solar PV system works, the Group specializes in design, installation and maintenance works of solar PV systems.

For the three financial years ended 31 March 2024, the Group completed a total of 79 projects. In terms of site formation works, the Group has participated in sizeable infrastructure projects such as the Third Runway Projects at the Hong Kong International Airport. In respect of Road and drainage works, the Group was the main contractor of a department of Hong Kong Government for a village sewerage project at Mui Wo with a contract sum of approximately HK$99.1 million. As for electrical cable engineering works, the Group was one of the subcontractors for the CLP Group, providing zonal cable trenching, laying and jointing works in the Sham Shui Po, Wong Tai Sin and Tsuen Wan zones. According to the industry report prepared by Frost & Sullivan Limited, the Group is the largest power cabling and civil pipeline installation subcontractor in Hong Kong in 2023 with the market share of approximately 13.6% based on its revenue for FY2023/24. As at 31 July 2024, the Company currently has 27 projects in progress and its value of backlog amounts to approximately HK$815.5 million.

Development and Strengths

With the Hong Kong government deploying for and investing in site formation and infrastructure projects in the proposed Northern Metropolis Development, the Hong Kong-Shenzhen Innovation and Technology Park, and the Hung Shui Kiu/Ha Tsuen New Development Area, civil engineering market demand is expected to keep growing. Wing Lee has high hopes to stand out in the fierce market competition, be able to fully grasp the huge business opportunities in the developing industry, and in turn see its business revenue grow rapidly.

For combating climate change and achieving carbon neutrality, the Hong Kong government launched the Hong Kong’s Climate Action Plan 2050, setting out the vision of “Zero-carbon Emissions • Liveable City • Sustainable Development”. In addition, the Development Bureau also established the Construction Innovation and Technology Fund (CITF) to support advanced construction technologies. Always staying abreast of Hong Kong’s development trend, the Group has been actively participating in finding energy efficiency solutions for the market. As early as in 2019, it started deploying its solar PV system business.

Additionally, the Group has entered into a distribution agreement with China Wealth Hong Kong Machine Limited (“China Wealth”), a fellow subsidiary of SANY Heavy Industry Co., Ltd* (a company listed on the Shanghai Stock Exchange) and Sany Heavy Equipment International Holdings Company Limited (a company listed on the Hong Kong Stock Exchange). Furthermore, the electric machinery of China Wealth, such as electric loader and electric excavator, is on the pre-approved list of the Construction Innovation and Technology Fund (CITF) under the category of advanced tools and equipment. Thus, confident in electric machinery having opportunities to develop continuously, Wing Lee will purchase, invest in and deploy more of them for use in future projects.

Wing Lee consistently emphasizes safety and is committed to promoting safety practice during the implementation of our projects. Over the past three fiscal years, the Company’s accident rates was lower than the industry average in Hong Kong. Additionally, Wing Lee will respond to the Hong Kong government's adoption of Smart Site Safety System (“4S”). The System can monitor activities and identify safety hazards, collect real-time data and send them to the centralized management platform for data analysis and issuing alert, offering workers assistance and protection any time plus a full picture of the safety situation on a construction site, for a project to be implemented more efficiently.

One of the advantages of Wing Lee is its own strong workforce and machinery and equipment, giving it flexibility in allocating workers and machinery and equipment to handle projects of different sizes and complexity. Meanwhile, it also reduces the Company’s reliance on subcontractors or suppliers which would maintain its competitiveness of pricing.

Wing Lee’s management team has extensive project experience and industry influence in the

construction industries in Hong Kong. Among them, Mr. Yiu Wang Lee, Chairman, CEO, Executive Director, and co-founder, has over 26 years of experience in civil and electrical cable engineering industries; Mr. Yiu Wang Lung, an executive Director and one of our founders, has over 18 years of experience; Mr. Chan Lo Man, an executive Director, is primarily responsible for the day-to-day project management and day-to-day management of the operations of the Company. Mr. Chan has been responsible for overseeing the Company’s various major projects, including the projects with the CLP Group and the Third Runway Projects of the Hong Kong International Airport, among others; Ms. Tse Ka Wing has accumulated expertise with over 17 years of finance and accounting experience. The Company's three independent non-executive directors also bring rich industry experience. The Honorable Mr. Shang Hai Long is a member of the Legislative Council of the Hong Kong Special Administrative Region and serves as an advisor to several listed companies; Mr. Fu He has over 30 years of exceptional management experience in civil engineering, and held key positions in several listed companies; Mr. Leung Wai Hung has more than 20 years of extensive experience in multiple Hong Kong listed companies, including CK Hutchison Holdings Limited (Stock Code: 001).

Financial Performance

Wing Lee has achieved a solid financial performance over the past three financial years. For the three financial years ended 31 March 2024, the revenue amounted to approximately HK$520.4 million, HK$361.2 million and HK$526.1 million, respectively. The net profit amounted to approximately HK$59.1 million, HK$40.6 million and HK$76.9 million, respectively. The gross profit margin increased from approximately 18.0% for the year ended 31 March 2022 to approximately 20.9% for the year ended 31 March 2023 to approximately 23.1% for the year ended 31 March 2024, while the net profit margin increased from approximately 11.3% for the years ended 31 March 2022 and approximately 11.2% for the year ended 31 March 2023 to approximately 14.6% for the year ended 31 March 2024.

Mr. Yiu Wang Lee, Chairman, CEO, Executive Director, and co-founder of Wing Lee said: “The Group is committed to operating its business in a sustainable manner, making good use of resources and providing customers with quality and reliable services. We are fully aware that achieving long-term and sustainable development goals requires not only excellent business strategies, but also active promotion of environmental and social responsibility, talent development, and community feedback. We strive to achieve a balance and win-win situation among social, environmental, and economic aspects, thereby contributing to global sustainable development.”

Use of Proceeds
Assuming an offer price of HK$0.65 per offer share, which is the mid-point of the indicative offer price range, the Group expects to receive net proceeds of approximately HK$130.5 million, after deducting the underwriting fees and commissions and estimated expenses payable in connection with the Offering. The Group intends to use the proceeds from the Public Offering for the purposes and in the amounts set forth below:

Financial Highlights

About Wing Lee Development Construction Holdings Limited

The Group is an established contractor in Hong Kong engaged in civil and electrical cable engineering and solar PV system works. With over 18 years of extensive experience in Hong Kong's civil and electrical engineering industries, the Group has participated in sizeable infrastructure projects such as the Third Runway Projects at the Hong Kong International Airport. The Group was also one of the subcontractors for the CLP Group, providing zonal cable trenching, laying and jointing works in the Sham Shui Po, Wong Tai Sin and Tsuen Wan zones. It was the main contractor of a department of Hong Kong government for a village sewerage project at Mui Wo with a contract sum of approximately HK$99.1 million. According to Frost & Sullivan Limited, Wing Lee is the largest power cabling and civil pipeline installation subcontractor in Hong Kong in 2023 with the market share of approximately 13.6% based on its revenue for FY2023/24. One of the advantages of Wing Lee is its own strong workforce and machinery and equipment, giving it flexibility in allocating workers and machinery and equipment to handle projects of different sizes and complexity.

THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR TO ISSUE, OR A SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES (THE “SHARES”) OF WING LEE DEVELOPMENT CONSTRUCTION HOLDINGS LIMITED (THE “COMPANY”) IN ANY JURISDICTIONS IN WHICH SUCH OFFER, INVITATION, SUBSCRIPTION OR SOLICITATION OR SALE IS NOT PERMITTED. THIS PRESS RELEASE AND THE SHARES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS OF THE UNITED STATES, AND MAY NOT BE DISTRIBUTED OR OFFERED, SOLD OR DELIVERED, AS THE CASE MAY BE, IN THE UNITED STATES, OR TO, OR FOR THE ACCOUNT OR BENEFIT OF U.S. PERSONS, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN ACCORDANCE WITH AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT. THE COMPANY HAS NOT AND DOES NOT INTEND TO REGISTER THE SHARES UNDER THE U.S. SECURITIES ACT OR MAKE ANY PUBLIC OFFER OF THE SHARES IN THE UNITED STATES. NO COPY OF THIS PRESS RELEASE (AND INFORMATION CONTAINED HEREIN) HAS BEEN OR SHOULD BE DISTRIBUTED OR SENT, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION WHERE DOING SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

THE PRICE OF THE SHARES MAY BE STABILIZED IN ACCORDANCE WITH THE SECURITIES AND FUTURES (PRICE STABILIZING) RULES (CHAPTER 571W OF THE LAWS OF HONG KONG) IN HONG KONG. THE DETAILS OF THE INTENDED STABILIZATION AND HOW IT WILL BE REGULATED UNDER THE SECURITIES AND FUTURES ORDINANCE (CHAPTER 571 OF THE LAWS OF HONG KONG) ARE CONTAINED IN THE PROSPECTUS OF THE COMPANY.

THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS THAT STATE THE INTENTIONS, BELIEFS, EXPECTATIONS OR PREDICTIONS FOR THE FUTURE THAT ARE, BY THEIR NATURE, SUBJECT TO SIGNIFICANT RISKS AND UNCERTAINTIES AND THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS.

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