IPO News | Associated Stock has 119 active projects through Hong Kong Stock Exchange hearing

The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on December 17, Midland Steel Construction Systems (Shanghai) Co., Ltd. (abbreviation: APAC) passed the Hong Kong Stock Exchange's main board listing hearing, and Shen Wan Hongyuan Hong Kong was the sole sponsor.

According to the prospectus, Midland Co., Ltd. is a comprehensive prefabricated steel construction subcontract service provider for the industrial sector in the prefabricated steel structure (prefabricated steel structure) market. The company provides comprehensive services for construction projects in various industries, covering project design and optimization, procurement, manufacturing and installation. The company is mainly engaged in the construction of precast steel structures in China (and to a lesser extent overseas). With its technology and expertise, the company has established a strong reputation in the industrial sector of the Chinese prefabricated steel construction market.

According to the Frost & Sullivan report, in terms of 2024 revenue, the company ranked third in the industrial sector of China's precast steel construction market, with a market share of 3.5%; the market shares of the two major players were 35.8% and 6.5%, respectively.

The industrial sector of the precast steel construction market includes the design, production and installation of steel building components, providing superior efficiency, strength, and adaptability in industrial, commercial, and residential applications. In the industrial field, prefabricated steel structures are particularly valued because they can meet the needs of large-scale construction, achieve rapid assembly and installation, and have the ability to expand, and are the best choice for modern industrial buildings. The company provides integrated prefabricated steel construction subcontracting services tailored to meet diversified project needs, and is recognized by various sectors, and the company's Mian Steel Structure brand is also recognized by the industry and market.

According to the revenue recognition model and operating characteristics, the company's business is divided into three business categories: (i) prefabricated steel construction subcontracting services; (ii) professional engineering general contracting; and (iii) industrial environmental protection equipment. These interlinked business categories create synergies to drive the Group's continued growth.

Prefabricated steel construction subcontracting services are the cornerstone of the company's business. This business category integrates design, manufacturing, on-site installation and warranty to provide comprehensive subcontracting services tailored to the needs of different industrial projects.

In addition to the core prefabricated steel construction subcontract service business category, the company has expanded its business to specialized engineering general contracting. As a general contractor, the company oversees the entire life cycle of the project, including project implementation, main structure construction, quality control, schedule, safety, and budget management.

The company's industrial environmental equipment business category is designed to meet the growing demand for specialty products in industrial manufacturing environments. This type of business mainly focuses on the mechanical filtration and noise reduction system (MFAS) product line, which currently accounts for the vast majority of revenue. The MFAS product line provides customized intake, exhaust and dust filtration systems and noise reduction equipment, specially designed for gas turbines. In addition to MFAS, the company is developing and commercializing a line of industrial dust removal equipment (APC) products. The APC product line provides advanced and flexible diversified dust control products and services, suitable for a wide range of industrial facilities.

The competitive pattern in the industrial sector of China's prefabricated steel construction market presents a highly concentrated structure, with the largest players in the industry dominating the industry. According to Frost & Sullivan's report, the company ranked third in this field, with a market share of 3.5% in 2024, while the market shares of the two major players were 35.8% and 6.5%, respectively.

The company's production capacity is currently supported by advanced production facilities located in (i) Shanghai, (ii) Suzhou, Jiangsu, and (iii) Jiangmen, Guangdong. The company's production facilities are equipped with advanced production lines to support the production of prefabricated steel structural building components and industrial environmental protection equipment to effectively meet various business needs. For the year ended 2022, 2023, December 31, 2024, and the six months ended June 30, 2025, the company's (i) capacity utilization rates for prefabricated steel construction components were 128.3%, 88.1%, 101.7%, and 158.7%, respectively; and (ii) the capacity utilization rates for industrial environmental protection equipment were 50.9%, 72.7%, 85.9%, and 82.7%, respectively.

For the year ended 2022, 2023, December 31, 2024 and the six months ended June 30, 2025, (i) the winning rates for the company's prefabricated steel construction subcontract projects were 27.8%, 30.3%, 22.7% and 32.1%, respectively; and (ii) the winning bid rates for the company's general contracting projects were 25.0%, 20.0%, 35.3% and 18.8%, respectively.

As of the last practical date (December 9, 2025), the company had 119 active projects.

On the financial side, in 2022, 2023, 2024, and 2025 for the six months ending June 30, the company's revenue was approximately RMB 1,903 million, RMB 1,453 billion, RMB 1,523 billion, and RMB 1,424 billion, respectively; for the same period, the annual/period profits were 87.706 million yuan, 62.112 million yuan, 707.83 million yuan, and 626.29 million yuan, respectively.