Logistics Firm ENL Group Holdings Submits Another IPO Bid to HKEx
According to an announcement by the Hong Kong Stock Exchange (HKEx) on Monday, ENL Group Holdings Limited has submitted an application for a public listing to its Main Board, with AdventCF serving as the exclusive sponsor. The company previously submitted an application to the HKEx on July 30, 2021.
ENL Group Holdings is a freight forwarder and logistics services provider based in Hong Kong, with additional branches in the Chinese mainland. It provides international air and ocean freight forwarding services to its clients. It also provides logistics and related value-added services to its customers, including warehousing, logistics, repackaging and labeling, and palletizing services.
Its business model consists mainly of securing cargo space from airlines and shipping companies to deliver the consignment to the requested destination, consolidating the consignment and generating profit from the space acquired.
In its capacity as a consolidator, the company resells cargo space obtained from airlines and shipping lines to its fellow freight forwarders at competitive rates. The company also provides logistics and related value-added services to its customers, including warehousing, logistics and other ancillary logistics services.
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During the recorded period, the company maintained business relationships with a total of over 1,400 suppliers. Purchases from the top five suppliers in the same period together accounted for approximately 61.7%, 62.4% and 49.4% of the total freight and handling costs incurred. Purchases from the largest suppliers accounted for approximately 47.3%, 52.8% and 37.0% of the total freight and handling costs incurred, respectively.
In FY 2019, FY 2020 and FY 2021, its revenue totaled about HK $646 million, HK $486 million and HK $579 million respectively, and net profits for the same period were HK $25.565 million, HK $33.58 million and HK $27.291 million.
