IPO News | Zhuoli International submits Hong Kong Stock Exchange GEM is mainly engaged in demolition projects as the chief contractor in Hong Kong

The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on August 25, Zhuoli International Holdings Limited (hereinafter: Zhuoli International) submitted a listing application to the Hong Kong Stock Exchange GEM, and Baihui Capital Co., Ltd. is its sole sponsor.

Company profile

According to the prospectus, Zhuoli International is mainly engaged in demolition projects in Hong Kong as the chief contractor. During the track record period, Zhuo Li International also undertook various other construction projects, such as repair and maintenance works, correction works, improvement works and site maintenance projects. Zhuo Li International (together with its predecessor Weiye Engineering Company, founded in 1989) has accumulated a history of over 35 years of operation in the Hong Kong construction industry. Zhuo Li International's projects are mainly handled by Weiye Engineering, which is its main operating subsidiary established in Hong Kong. According to Frost & Sullivan's report, the Group ranked fifth and third in terms of revenue in 2024 and 2025, respectively, and its market share increased from about 3.0% in 2024 to about 4.9% in 2025.

During the track record period, demolition works were the Group's main source of revenue, accounting for approximately 93.2%, 93.6%, 96.6% and 86.3% of total revenue for fiscal year 2025, fiscal year 2026, first three months of 2025 and the first three months of 2026, respectively.

When undertaking the project, the revenue generated by Zhuo Li International includes: (i) the proceeds of the contract amount, that is, the cost paid by the customer for the services provided by the Group; and (ii) in the case of some demolition projects, the amount obtained by disposing of the recycled materials obtained by disposing of the recycled materials removed from the demolition site to third party recyclable material buyers.

On the customer side, during the track record period, the Group's customers were mainly (i) private institutional project owners, mainly private property developers, and (ii) buyers of recycled materials, mainly companies engaged in recycled materials trading.

Financial data

yields

In fiscal year 2025, fiscal year 2026, and the first three months of 2026, the company achieved revenue of approximately $77.28 million (HK$, same for some units), $137 million, and $43.19 million, respectively.

Total profit and comprehensive income for the year/period

In fiscal year 2025, fiscal year 2026, and the first three months of 2026, the company recorded total annual/period profit and overall revenue of approximately RMB 8.649 million, RMB 24.231,000, and RMB 9.443 million respectively.

Mouri

In fiscal year 2025, fiscal year 2026, and the first three months of 2026, the company recorded gross profit of approximately RMB 19.041 million, RMB 39.401 million, and RMB 148.31 million respectively.

Industry Overview

According to the Hong Kong Census and Statistics Department, the total value of construction works carried out by major contractors increased from HK$233.7 billion in 2021 to HK$287.5 billion in 2025, with a compound annual growth rate of 5.0% from 2021 to 2025. The industry faced challenges from 2020 to 2021 due to the aftermath of social unrest and the COVID-19 pandemic, which (i) suspended and slowed construction activities, and (ii) disruptions in the global supply chain affected material supply, which in turn caused project delays and fewer new construction projects. Since 2022, the pace of recovery has accelerated, supported by a rebound in public and private sector activity. The Hong Kong Government continues to drive future growth through large-scale infrastructure developments, including the Northern Metropolitan Area, the continued advancement of the Lantau Vision of Tomorrow, and related transportation, housing and public works projects. Despite a recent slowdown in private sector activity and economic headwinds in 2025, these large-scale projects are expected to sustain and drive construction output in the medium to long term. The total value of construction works carried out by major contractors is expected to increase from HK$300.4 billion in 2026 to HK$357.9 billion in 2030, at a CAGR of 4.5%.

From 2026 to 2030, the total value of building demolition works carried out by major contractors in Hong Kong is expected to continue the upward trend, increasing from an estimated HK$2,835 million in 2026 to HK$3,828.4 billion in 2030, with a projected CAGR of 7.8%. This continued growth is expected to be driven by factors such as ongoing large-scale infrastructure and new development area projects (such as Hung Shui Kiu and other northern metropolitan area plans), ongoing urban renewal, and increasing emphasis on sustainable demolition operations (including waste recycling).

Board Information

The Board consists of six directors, including 2 executive directors, 1 non-executive director and 3 independent non-executive directors.

Shareholding structure

According to the Confirmation of Concerted Action, the controlling shareholders' group will be formed by Hang Tai (co-owned by Mr Lo Kam, Ms Mak Siu-kai, and Mr Lo Siu-tong), Chengye (wholly-owned by Mr Lo Cheuk-pui), Mr Lo Cheuk-pui, Ms Mak Wai-ching, Mr Lo Siu-kai and Mr Law Siu-tong.

Intermediary team

Sole sponsor: Baihui Capital Co., Ltd.

Corporate Counsel: Harney Westwood & Riegels, Haoqin & Co.

Sole sponsor legal adviser: Guangdong Huashang (Hong Kong) Law Firm

Co-auditors and reporting accountants: Tianjian Deyang Certified Public Accountants Co., Ltd., Dahua Ma Shiyun Certified Public Accountants Co., Ltd.

Compliance Advisor: Baihui Capital Co., Ltd.

Industry Advisor: Frost & Sullivan Ltd