Thursday, 29 March 2018, 12:18 HKT/SGT

Offering Total of 100,000,000 Shares with price set between HK$0.55 and HK$0.85 per offer share

HONG KONG, Mar 29, 2018 - (ACN Newswire) - Zhicheng Technology Group Ltd. ("Zhicheng" or the "Company"), announced today the details of the proposed listing of its shares by way of share offer (the "Share Offer") on the GEM of the Stock Exchange of Hong Kong Limited ("HKEx").

Zhicheng plans to offer a total of 100,000,000 Shares, comprising 10,000,000 public offer shares and 90,000,000 placing shares, at an offer price between HK$0.55 and HK$0.85 per offer share. The public offer will open at on Thursday, 29 March 2018 and close at on Tuesday, 10 April 2018. The allotment results will be announced on Thursday, 19 April 2018. Dealings in the Company's shares on GEM are expected to commence at on Friday, 20 April 2018 under the stock code 8511.HK.

RaffAello Capital Limited is the sole sponsor, and RaffAello Securities (HK) Ltd. acts as the sole bookrunners and Sole lead managers in relation to the Share Offer.

The Company is a smart manufacturing solutions provider focusing on precision 3D testing solutions and precision machining solutions in China, to serve the needs of high-end equipment manufacturers which require a high level of precision in the manufacture of their industrial products. Most of its end customers are state-owned enterprises from different industries such as aviation, aerospace, shipbuilding, ground transportation vehicles and electronics. The Company's solutions comprise and integrate various equipment and services, typically ranging from solution concept and design, procurement of machinery, auxiliary tools and software and system installation and debugging to provision of after-sales services such as technical support and training.

For the years ended 31 March 2016 and 2017 respectively, the revenue of Zhicheng were approximately HK$26.0 million and HK$43.5 million and its gross profit were approximately HK$9.7 million and HK$25.7 million. Gross profit margin for the relevant period were 37.4% and 59.1%, respectively.

According to Frost & Sullivan, in 2016, the Company was the second largest smart manufacturing solutions provider of industrial precision 3D testing solutions and precision machining solutions, in terms of revenue, in China with a market share of 4.6%. With more than 10 years of experience, Zhicheng provides smart manufacturing solutions in China and has sales and marketing presences in five different regions in China. The Company's headquarters are located in Guangzhou, complemented by an experienced technical support team based in Beijing.

Mr. Wu Di, our Chairman, Executive Director and Chief Executive Officer of Zhicheng Technology Group Ltd. says, "We are pleased to witness this significant milestone in the Company's history. Through our listing on GEM of the Hong Kong Stock Exchange, we will tap into the international capital markets, which will not only broaden our capital and shareholder base, but also provide us with capital to fund our expansion plan to continue strengthening our leading position in the industry and further enhancing our competitive advantages, thereby driving the Company's long-term development."

This press release is disseminated by Frement Financial Relations Limited on behalf of Zhicheng Technology Group Ltd.

For further enquiries, please contact Frement Financial Relations Limited:

Dawn Lee (852) 6155 8827 / dawn@frement.com
Ashley Kung (852) 6608 9927 / ashley@frement.com
Vanessa Wong (852) 6127 1953 / vanessa@frement.com

Topic: Press release summary Sectors: Daily Finance
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