Tongcheng Holdings Co., Ltd. applied to the Hong Kong Stock Exchange for listing on the Main Board on October 28th. This is the second time after its application was rejected in April this year. Headquartered in Hong Kong, Tongcheng Holdings is a manufacturer of the EMS industry. Its production facilities are located in Songgang, Shenzhen, with a total construction area of ​​23,000 square meters. Tongcheng Holdings mainly manufactures electrical related products and power and electronic products, including solenoid coils, battery charger solutions and power supplies, LED lighting and others, such as PCBA and component assembly. Among them, the sales of solenoid coils is the company's largest source of revenue, followed by battery charging solutions and power supplies. In 2015, revenues accounted for 60.9% of total revenue, as shown in the following figure: Tongcheng Holdings' application documents show that its main markets are located in the United States and Europe, with revenue from the United States accounting for 46.1%, 54.2% and 56.7% of total revenue in 2013, 2014 and 2015, respectively. As of the first eight months of 2016, revenue from the United States, the United Kingdom and other parts of Europe accounted for 74.5% of total revenue. As shown below: In the 2013, 2014, 2015, May 31, 2015, and June 31, 2016, Tongcheng Holdings’ total revenue was 325.2 million, 334.5 million, and 327.6 million, respectively. 216.7 million and 179.3 million (HK$, the same below). Net profit was 23.24 million, 30.19 million, 33.21 million, 18.26 million, and 5.59 million. As shown below: It is worth mentioning that during the eight-month period ended May 31, 2016, Tongcheng Holdings had a one-time expenditure of approximately 11.97 million Hong Kong dollars in a certain project. Therefore, during the period, the net profit was 18.26 million from last year. Dropped to 5.59 million. It is understood that Tongcheng Holdings currently has more than 30 customer groups, of which five are relatively stable and have a business relationship with the company for 5 to 14 years. For the years ended September 30, 2013 and 2014, the top five customers accounted for 69.7%, 77.2%, and 76.8% of total revenue, respectively. The largest customer is an American company specializing in the manufacture of hydraulic chips and manifolds. In order to maintain a stable gross profit, Tongcheng Holdings adopted a product pricing strategy for cost-plus. The cost increase mainly accounts for material costs, labor costs, manufacturing overheads and price increases, that is, the expected gross profit margin. After Tongcheng Holdings and the customer agreed on the selling price, the price will be fixed for about 3 to 12 months, mainly adjusted according to the price rise of raw materials such as copper, plastic resin and metal parts. Therefore, the company's gross profit margin is locked at 17.4%. It is between 22.6%. International prices of copper and plastic resins have changed in recent years as follows: In the first few reporting periods, the price decline of the company's main products was smaller than that of the main raw materials. As a result, the company's gross profit margin has increased. In 2013, 2014, 2015 and the first eight months of May 31, 2016, the gross profit margin was 17.4%, 18.4%, 20.8%, and 22.6%, respectively. As shown below: At present, Tongcheng Holdings is relatively small in the industry involved, and its market share is low. In the solenoid coil industry, the market share is 1.8%, while the top five companies share a market share of 78.9%; in the industrial charging industry, the company has a market share of 1.9%, and the top five companies have a total market share of 34.6%. Share; in the commercial LED lighting industry, the company's market share is only 0.01%, the top five companies share a market share of 7.1%. Some institutions predict that the spiral coil industry will have a compound annual growth rate of 4.6% from 2016 to 2020. The industry-grade charger industry is expected to have a compound annual growth rate of 4% from 2016 to 2020. It is predicted that the commercial LED lighting industry will have a compound annual growth rate of 18.3% from 2016 to 2020. The reason for the rapid growth of the LED industry is the government's policy support for the energy conservation and environmental protection industry. Electrical Cabinet Shandong Qingneng Power Co., Ltd. , https://www.steamturbine.be