By: Kleer Closing date of application: 19 February 2008 Commencement of trading: 21 February 2008 Established in the 1992, Yongmao Holdings designs and manufactures a wide range of towercranes and towercrane components and accessories sold under its brands including Yongmao and Suncrane in PRC. Yongmao is also a subsidiary of SGX-listed crane supplier Tat Hong, which will continue to own 74.4% of its total shares after its listing. Their towercranes are sold to customers all around the world, and are used mainly in construction sites, infrastructure projects, and in the shipbuilding industry. Revenue breakdown by market:

• PRC - 22%
• US and Europe - 29.9%
• Asia (excluding PRC) and Middle East - 48.1%

Key Competitive Strengths:

1. High barriers to entry - new entrants to this industry need a high level of expertise and experience, high capital investment, and a strong track record.
2. Other than sales, they also offer technical advice, after-sales maintenance services, and training for their customers.

Key Growth Plans:

1. They are constructing a new manufacturing facility to be completed by end 2008, which will then double its production capacity.
2. They will introduce a new product - their 5th series of towercrane known as the crawler crane - by end 2008.

Key Risk Factors:

1. Their business is cyclical and typically dependent on the fluctuations of the construction industry.
2. They are susceptible to the price fluctuations of steel and other components which are key raw materials.

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