New stock news | Yuanyuan Construction submits an application to the Hong Kong Stock Exchange's Growth Enterprise Market, deeply cultivating the Chinese curtain wall engineering market.

According to the disclosure on June 29th by the Hong Kong Stock Exchange, Yueyuan Construction has submitted an application to list on the GEM board of the Hong Kong Stock Exchange, with Paihui Jin Kong as the exclusive sponsor. The company had previously submitted an application to list on the main board of the Hong Kong Stock Exchange on October 31, 2024. Company Overview The prospectus shows that Yueyuan Construction is a professional subcontractor specializing in curtain wall engineering, headquartered in Guangdong Province, China. The company's curtain wall projects involve designing, processing, assembling, and installing custom curtain walls for projects by China State Construction Engineering Corporation. The curtain wall is a non-load-bearing exterior wall structure of a building, mainly made of light materials such as aluminum, glass, steel, and stone to enhance the aesthetics of the building's exterior and improve energy efficiency. According to industry reports, the top 10 curtain wall companies in China accounted for about 6.6% of the industry's total revenue in 2025. Based on revenue in 2025, the group held about 0.1% market share. The company supplies various types of curtain walls and related items, including metal roofs, outdoor doors and windows, and light steel structure engineering, all of which are components of curtain wall projects. The company has production facilities in Huizhou City, Guangdong Province, China, for processing custom curtain wall products and related items. In terms of production capacity, the company's production facilities have an annual production capacity of up to 944,500 square meters. In the fiscal years of 2024, 2025, and the first three months of 2026, the utilization rate of the company's production facilities was approximately 89.5%, 77.2%, and 65.4% respectively. During the past performance period, the company was mainly commissioned by the general contractor or project owner. The percentage of revenue from the largest customer in each year/period was approximately 25.7%, 24.2%, and 36.0% respectively, and the total percentage of revenue from the top five customers was about 59.8%, 60.6%, and 88.0% respectively. When installing the company's curtain wall products on construction sites, the company mainly focuses on playing a role in project management and supervision, and usually hires subcontractors to carry out most of the installation work under the company's supervision. The company's project management work mainly includes: (i) arranging site preparation and early-stage engineering; (ii) contracting and supervising subcontractors; (iii) maintaining regular communication with customers; (iv) monitoring the implementation of installation work; (v) conducting site safety supervision and quality control; and (vi) developing detailed work schedules and work distribution plans. In the fiscal years of 2024, 2025, and the first three months of 2026, the construction site engineering subcontracting expenses of the company accounted for approximately 39.2%, 30.3%, and 35.6% of the total procurement amount for the respective years/periods. Financial Data Revenue In the fiscal years of 2024, 2025, and the first three months of 2026, the company achieved revenues of approximately RMB 665 million, RMB 627 million, and RMB 128 million respectively. Profit In the fiscal years of 2024, 2025, and the first three months of 2026, the company's annual/periodic profits and comprehensive income totals were approximately RMB 17.149 million, RMB 19.339 million, and RMB 5.081 million respectively. Gross Margin In the fiscal years of 2024, 2025, and the first three months of 2026, the company's gross margins were 14%, 12.7%, and 12% respectively. Industry Overview China's curtain wall market size, classified by ownership nature (based on income generated) The government-operated sector (including curtain wall projects funded by government agencies, public institutions, and state-owned enterprises) has experienced rapid growth, with a compound annual growth rate of 5.1% from 2020 to 2025. Given the increasing recognition of curtain wall systems as an essential component of modern public infrastructure and policy support, government-operated projects are expected to maintain stable growth with a forecast compound annual growth rate of 4.4% from 2026 to 2030. In contrast, the private sector (including curtain wall projects for privately owned residential, commercial, and industrial buildings) has shown a slower growth rate, with a compound annual growth rate of 2.5% from 2020 to 2025. Looking ahead, the private sector is expected to grow at a compound annual growth rate of 2.0% from 2026 to 2030. New building segments dominate the curtain wall market, accounting for approximately 93.2% of the total market share in 2025. This segment is expected to maintain stable growth with a forecast compound annual growth rate of 2.9% from 2026 to 2030, reaching RMB 523.8 billion by 2030. The existing building renovation segment accounted for the remaining 6.8% of the market in 2025, expanding from RMB 25.2 billion in 2020 to RMB 33.4 billion in 2025, with a compound annual growth rate of 5.8%. Guangdong Province's curtain wall market size, based on income generated The curtain wall market size in Guangdong Province has increased from RMB 50 billion in 2020 to RMB 63 billion in 2025, with a compound annual growth rate of 4.7%. It is expected that from 2026 to 2030, this market will expand at a compound annual growth rate of 3.7%, reaching RMB 74.4 billion by 2030. The government-operated curtain wall market in Guangdong Province grew from RMB 17.1 billion in 2020 to RMB 23.3 billion in 2025, with a compound annual growth rate of 6.4%. With ongoing support for infrastructure development, this industry is expected to maintain strong growth, with a forecast compound annual growth rate of 5.1% from 2026 to 2030, reaching RMB 29.5 billion by 2030. The private sector grew from RMB 33 billion in 2020 to RMB 39.7 billion in 2025, achieving a compound annual growth rate of 3.8%. Driven by the development of the Greater Bay Area commercial real estate sector and continued urbanization support, this segment is expected to grow at a compound annual growth rate of 2.7% from 2026 to 2030, reaching RMB 44.9 billion by 2030. The new building segment in Guangdong Province accounted for 92.1% of the total market share in 2025, growing at a compound annual growth rate of 4.6% from 2020 to 2025. This segment is expected to grow at a compound annual growth rate of 3.8% from 2026 to 2030. The existing building renovation segment accounts for 7.9% of the market, with a compound annual growth rate of 5.6% from 2020 to 2025. This segment is expected to grow at a compound annual growth rate of 1.9% from 2026 to 2030, driven by improvements in energy efficiency and urban renewal projects. In 2025, the competition in China's curtain wall industry is fierce, with over 8,000 professional contractors with first-tier qualifications approved by the Ministry of Construction. The top 10 curtain wall engineering companies in China accounted for approximately 6.6% of the total market share based on the total revenue of China's curtain wall projects, indicating that the overall curtain wall engineering market is relatively fragmented, with the group holding a 0.1% market share. Board of Directors Information The company's board of directors currently consists of 7 directors, including 2 executive directors, 2 non-executive directors, and 3 independent non-executive directors. Equity Structure As of June 22, 2026, Zuanteng and Like respectively held approximately 52.92% and 46.08% of the company's shares. Zuanteng is an investment holding company wholly owned by Mr. Liu Ruquan. Like is an investment holding company wholly owned by Mr. Liu Canquan. Under the GEM listing rules, Zuanteng, Like, Mr. Liu Ruquan, and Mr. Liu Canquan are the controlling shareholders. Intermediary Team Exclusive sponsor: Paihui Capital Limited Legal advisor to the company: Hong Bingkun and Yang Yong'an Law Firm for Hong Kong law; Beijing Dacheng (Shenzhen) Law Firm for Chinese law; Harney Westwood & Riegels for Cayman Islands law Legal advisor to the exclusive sponsor: Guantao Law Firm (Hong Kong) for Hong Kong law; Tung & Co. Law Firm for Chinese law Auditors and reporting accountants: Guowei Certified Public Accountants LLP Industry consultant: Frosst Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance advisor: Paihui Capital Limited.