Wan Leader International Limited proposed listing on GEM of The Stock Exchange of Hong Kong Limited
Raising up to approximately HK$88,200,000 to actively expand its logistics service business

(24 August 2018, Hong Kong) Wan Leader International Limited ("Wan Leader", together with its subsidiaries, the "Group", SEHK stock code: 8482), one of the logistics service providers in Hong Kong, announces today its proposed listing on GEM of The Stock Exchange of Hong Kong Limited ("SEHK") through the public offer and placing of its shares (the "Shares").

The offering of Wan Leader consists of a total of 252,000,000 Shares (subject to the Offer Size Adjustment Option), including the public offering of 25,200,000 Shares (subject to reallocation) and the placing of 226,800,000 Shares (subject to reallocation and the Offer Size Adjustment Option). The offer price (the "Offer Price") is expected to be not less than HK$0.25 and not more than HK$0.35 per Offer Share. The shares will be traded in board lots of 10,000 Shares each. The price for one board lot will be not more than HK$3,535.27 based on the Offer Price of up to HK$0.35 per share, plus brokerage of 1%, SFC transaction levy of 0.0027% and Stock Exchange trading fee of 0.005%. Huabang Corporate Finance Limited is the Sole Sponsor, Huabang Securities Limited and China Goldjoy Securities Limited are the Joint Bookrunners and Joint Lead Managers, and HK Monkey Securities Limited and Sincere Securities Limited are the Joint Lead Managers of the public offering and placing.

Wan Leader will receive approximately HK$50.9 million (after deducting the underwriting fees and commissions, fees and anticipated expenses and assuming an Offer Price of HK$0.30 per Offer Share, being the mid-point of the Offer Price range of not less than HK$0.25 and not more than HK$0.35 per Offer Share) and intend to apply the net proceeds for the following purposes:

- Approximately HK$17.2 million (33.8%) will be used to expand its warehouses

- Approximately HK$18.8 million (36.9%) will be used to attract and retain talented and experienced personnel

- Approximately HK$10.2 million (20.0%) will be used to develop its trucking fleet

- Approximately HK$3.1 million (6.1%) will be used to further enhance its information technology systems

- Approximately HK$1.6 million (3.2 %) will be used as general working capital

Wan Leader is one of the logistics service providers in Hong Kong, who offers air freight forwarding and sea freight forwarding services. The majority of the cargo space that the Group sells are for goods being exported from Hong Kong to various destinations over the world, mainly to the United States and Europe. The Group generates profits by (a) acquiring cargo space from suppliers at competitive prices, a portion of which are under block space arrangements; (b) consolidating its cargo spaces; (c) co-loading with other freight forwarders; and (d) selling its cargo space to customers on a cost-plus basis.

Furthermore, the Group strategically offers warehousing and related value-added services as part of its freight forwarding and related logistics services at its warehouse in Kwai Chung, Hong Kong (the "Warehouse"), in order to compete against other market players and in response to the rising demand from its customers. Services offered include warehousing, repackaging and labelling, palletising, supply chain management, and local delivery services within Hong Kong.

The Group integrates warehousing and related value-added services into its core freight forwarding and related logistics services to increase competitiveness and better facilitate the needs of its customers. The Group's Warehouse is equipped with floor with dust-proof and anti-static material, 24-hour electronic monitoring system, 24-hour temperature, humidity control systems and relatively high ceiling, in order to provide the most suitable solution to its customers.

For the financial year ended 31 March 2016, 2017 and 2018, the Group's revenue attributable to its freight forwarding and related logistics services amounted to approximately HK$68.2 million, HK$53.8 million and HK$170.4 million, respectively, while its revenue attributable to warehousing and related value-added business amounted to approximately HK$8.0 million, HK$25.5 million and HK$27.5 million, respectively. For the financial year ended 31 March 2016, 2017 and 2018, the Group's total net profit amounted to approximately HK$6.3 million, HK$11.5 million and HK$11.0 million, respectively.

Logistics services industry is the major contributor to the economy of Hong Kong. According to the market research report prepared by Frost & Sullivan Limited, the market size of logistics services industry in Hong Kong increased from HK$344.1 billion in 2012 to HK$352.8 billion in 2017 at a CAGR of 0.5%. Logistics industry is estimated to remain stable in the future underpinned by the robust economic development in Hong Kong. The market size of logistics industry is expected to grow at a CAGR of 1.0% and reach HK$368.8 billion in 2022, benefiting from the improved transportation infrastructure and network and the resilient merchandise trade market in Asian countries.

With over 20 years of successful experience in developing and operating freight forwarding and related logistics services of the management team of the Group, Wan Leader will further expand its scales and develop its existing portfolio of cargo routes from Hong Kong to the United States, Europe and other regions, in order to boost sales performance and enhance market share in the logistics industry in terms of its future business strategies.