USAS Building System’s HKEX Debut Puts Prefabricated Steel in Focus

HONG KONG – December 29, 2025 – As USAS Building System (Shanghai) Co., Ltd. prepares to make its trading debut on the Hong Kong Stock Exchange on December 30, the company has already captured significant investor attention, signaling a new level of capital market interest in the specialized sector of industrial prefabricated steel structures. The initial public offering (IPO) was met with fervent demand, with the Hong Kong public offering being oversubscribed by a remarkable 146.25 times, a clear vote of confidence in the company's strategy and the industry's future.

Despite pricing its shares at HKD 7.10, the lower end of its projected range, the company's stock saw a 13.7% jump in gray market trading ahead of the official listing. The successful IPO, which raised net proceeds of approximately HKD 140 million, positions USAS (stock code: 2671 HK) to accelerate its growth plans at a time when industrial construction is rapidly evolving. This listing does more than just provide capital for one company; it thrusts a critical, yet often overlooked, sub-sector of the construction industry into the financial spotlight.

A Market Leader in a Fragmented Industry

USAS is not merely a steel fabricator but an integrated solution provider specializing in prefabricated steel structure buildings for the industrial sector. The company’s model covers the entire project lifecycle, from design optimization and procurement to manufacturing and on-site installation. This end-to-end approach caters to the complex demands of modern manufacturing clients in sectors like automotive, pharmaceuticals, logistics, and electronics, who prioritize construction speed, structural integrity, and compatibility with sophisticated production systems.

According to a Frost & Sullivan report, USAS ranked third in China's industrial prefabricated steel structure building market by revenue in 2024, holding a 3.5% market share. While this percentage may seem modest, it underscores the highly fragmented nature of the industry and establishes USAS as a significant player with a clear competitive standing. The company's prospectus reveals a stable financial performance, with revenues of approximately RMB 1.903 billion in 2022, RMB 1.453 billion in 2023, and RMB 1.523 billion in 2024. The core business of prefabricated steel structure subcontracting remains the primary revenue driver, accounting for 81.5% of the total in 2024.

Profitability has also remained consistent, with overall gross profit margins hovering between 12.5% and 14.8% from 2022 to 2024. This stability reflects the project-based nature of the business and the company's ability to manage costs and deliver complex projects effectively. The proceeds from the IPO are earmarked for strategic initiatives, including bolstering research and development, increasing production capacity, brand promotion, and exploring potential acquisitions, all aimed at consolidating its market position.

An Emerging Overseas Growth Curve

While its foundation is firmly planted in the Chinese domestic market, USAS has been strategically cultivating a growing international presence. The company’s overseas expansion is most evident in its industrial environmental equipment business, which primarily serves markets outside of China. This segment has demonstrated impressive growth, with revenue surging from approximately RMB 31.82 million in 2022 to around RMB 100 million in 2024, while its gross profit margin climbed to a healthy 18.9%.

This international push is supported by a portfolio of certifications that meet standards in China, the United States, Europe, and Canada, providing USAS with the credentials needed for cross-regional project execution. This capability is becoming increasingly crucial as global supply chains continue to shift, with manufacturing capacity relocating to emerging hubs in Southeast Asia and other regions. Companies with proven, multi-market delivery capabilities like USAS are well-positioned to capitalize on the ensuing demand for new industrial facilities.

The expansion into overseas markets not only diversifies revenue streams but also provides a hedge against regional economic fluctuations. It represents a strategic pivot from being a domestic leader to becoming a global competitor in the industrial construction space, leveraging Chinese expertise and production efficiency on an international stage.

Riding the Wave of Green and Efficient Construction

The strong investor interest in USAS is underpinned by powerful secular trends transforming the global construction and manufacturing industries. The adoption of prefabricated building methods is accelerating worldwide as developers and industrial clients seek to compress project timelines, improve quality control, reduce on-site labor costs, and enhance sustainability.

In China, this trend is amplified by ambitious government policies. Beijing has mandated that by 2025, all new urban buildings must conform to green building standards, creating immense demand for sustainable materials and construction techniques. Prefabricated steel structures align perfectly with these goals, as they minimize construction waste, allow for the use of recycled materials, and can be designed for high energy efficiency. The controlled factory environment in which components are made ensures higher quality and less environmental disruption compared to traditional on-site construction.

Furthermore, the ongoing upgrade of China's manufacturing sector—part of the nation's push towards 'smart manufacturing' and 'Industry 4.0'—requires factories that are more than just simple shells. These advanced facilities demand rapid, precise, and flexible construction solutions that can accommodate robotics, complex logistics systems, and future technological integrations. Prefabricated steel, with its long spans and modular nature, is ideally suited for this new generation of industrial infrastructure. With its IPO providing fresh capital and its strategy aligned with these macro-economic tailwinds, USAS is poised to further solidify its role in building the factories of the future.