Share Offer of 36,000,000 Shares;
Offer Price Ranges from HK$4.0 to HK$5.56 Per Offer Share

HONG KONG — Wealthy Way Group Limited (“Wealthy Way”) together with its subsidiaries, (the “Group”), a financial leasing and advisory services provider based in Shenzhen, Guangdong Province, has today announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”).

Details of the Offer
The Group intends to offer a total of 36,000,000 Offer Shares under the Share Offer (subject to the over-allotment option), of which 90% are for Placing. The remaining 10% of the Offer Shares are for Public Offer. The indicative Offer Price ranges from HK$4.0 to HK$5.56 per Offer Share. After related listing expenses are deducted and assuming the Offer Price is fixed at HK$4.78 (being the mid-point of the indicative Offer Price range), the net proceeds from the Share Offer are expected to be HK$145.7 million (equivalent to RMB127.0 million).

The Hong Kong Public Offer has begun on 28 June 2017 (Wednesday) and will end at noon on 4 July 2017 (Tuesday). The final offer price and allotment results are expected to be announced on 10 July 2017 (Monday). Dealing of shares is expected to commence on the Main Board of SEHK on 21 July 2017 (Friday) under the stock code 3848. The shares are to be traded in board lots of 1,000 shares.

Ample Capital Limited is the Sole Sponsor of the listing, Ample Orient Capital Limited is the Sole Global Coordinator, and Ample Orient Capital Limited and ChaoShang Securities Limited are the Joint Bookrunners and Joint Lead Managers.

Company highlights
The Group was incorporated in the PRC in 2012 and engaged in the provision of financing leasing and advisory services. Since 2014, it had adjusted its business strategy to focus on certain specific industry segments with growth potential, such as airline company, health care service provider and energy saving equipment provider. Leveraging on the accumulated industry experience of the Group’s Directors and the senior management and the adjusted business strategy, it has achieved substantial business growth during the Track Record Period.

Tailor-make financial services for its customers
Leveraging on the industry knowledge and relationships with the Group’s customers, it is able to tailor-make the services particularly on interest rates and payment timeframes to better suit its customers’ financial needs. The Group has been continuously developing financial leasing solutions combined with advisory services.

The expansion of businesses and commercial activities in the PRC over the years has created a growing demand for funding. Considering that small to medium-sized enterprises often lack the ability to obtain traditional financing from commercial banks for their business development, the Group can help them obtain short-term to medium-term financing by providing financial leasing related solutions. It believes that the Group complements the role of commercial banks by providing alternative channel for customers who need financing.

Expanding customer base continuously
The Group believes that maintaining good relationship with its customers, equipment manufacturers and banks is crucial to its continued success. Some of its customers were referred by the equipment manufacturers and banks during the Track Record Period. Throughout years of business operations, the Group has developed a customer base in Shenzhen and also expanded its business to other regions of the PRC such as Guangdong Province, Hubei Province, Hunan Province, Hainan Province, Jilin Province and Inner-Mongolia. As at 31 December 2016, the Group had 48 corporate customers in the PRC which are across various industries, including airline company, health care service provider and energy saving equipment provider.

An effective risk management system
The Group’s risk management system comprises of business development department, accounting and finance department, risk management department and risk control committee. The risk control committee as the final decision maker has the ultimate authority to approve each project. The Group also periodically conducts post-leasing management on its customers and monitor financial leasing receivables. It takes both macro and micro economic conditions into account before making business decisions. Despite the recent slow-down of the PRC economy in general, the Group has been able to continue to increase its revenues and financial leasing receivables during the Track Record Period.

Management team with industry knowledge and network which created sound financial record
The majority of the Group’s Directors and senior management team has over 10 years of experience in corporate management, financial leasing or banking and finance industry. Financial leasing is an emerging and growing industry in the PRC, with the extensive financial experience and increasing practical knowledge of Mr. Lo Wai Ho, Executive Director, Chairman and Chief Executive Officer in the financial leasing industry, he is able to analyse and capture the market trends and give advice on the overall strategic planning and business opportunities for development and expansion of the Group.

Led by a management team with industry knowledge and network, the Group achieved sound financial track record. As at 31 December 2016, the Group had signed 38 agreements at RMB1.22 billion. For the years ended 31 December 2014, 2015 and 2016, profit from continuing operations was RMB21.8 million, RMB24.7 million and RMB29.6 million, respectively with an increase of approximately 35.8%.

Future Strategies
Looking forward, the Group will continue to improve its risk management capabilities and further streamline the process workflow to enhance its customer selection process, including credit assessment and approval procedures. The Group will also expand its business operation into financial leasing related factoring service to capture growth opportunities.

In addition, the Group will continue to develop its business with existing and new customers in industries and growth potential, as well as dedicate to build up customer loyalty to the Group. Under the current economic and political environment, the Group considers customers that include airline company, health care service provider and energy saving equipment provider have growth potential. The Group will hire senior staff with industry experience in order to continue strengthen its management team.

Use of Proceeds
Assuming the Offer Price of HK$4.78 (being the mid-point of the indicative Offer Price range), the Group estimates that the aggregate net proceeds from the Share Offer will be approximately HK$145.7 million (equivalent to RMB127.0 million) after deducting related expenses. The Group intends to apply such net proceeds in the following manner:

Item / Percentage
Expand current financial leasing operation / 70%
Develop new financial leasing related factoring business / 20%
General working capital / 10%

Financial Performance

RMB'000                                 Year ended 31 December
                                      2014         2015        2016
Revenue                               35,545     53,457      71,243
Return on equity                       9.1%        9.4%         9.9%
Profit before income tax              29,353     34,297       42,215
Profit for the year attributable 
to the owners of the Company          22,090     24,739        29,560