FUTURE PLANS AND USE OF PROCEEDS

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Harold Reed
10 years ago
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1 BUSINESS OBJECTIVES The overall business objective of the Group is to become a prominent player in the securities brokerage industry in Hong Kong focusing on brokerage service, placing and underwriting service, and margin financing service. The Group intends to expand and broaden its client base principally by developing its existing services. BUSINESS STRATEGIES Please refer to the paragraph headed Business Business strategies in this document. IMPLEMENTATION PLANS In order to implement the above strategies, the Group has prepared an implementation plan for the period from the Latest Practicable Date up to and including 31 May The following implementation plan only reflects the Directors current understanding of the market situation. The Directors will use their best endeavours to anticipate changes, yet allowing flexibility, to implement the following plans: Objectives Activities Use of proceeds (HK$ million) For the period from the Latest Practicable Date to 31 May 2016 Contribute funds for expansion of existing margin financing business and placing and underwriting business Entering into the stock option brokerage business N/A Recruit new staff For the period from 1 June 2016 to 30 November 2016 Engage an IT company to commence the development of an application for smartphone trading N/A Entering into the stock option brokerage business Engage an IT company for the implementation of a stock option trading system Upgrade the hardwares for the securities and futures trading system 129

BUSINESS STRATEGIES Please refer to the paragraph headed Business Business strategies in this document.

2 Objectives Activities Use of proceeds (HK$ million) Commence the lease of a new office and its decoration Engage an IT company to commence the implementation of internet trading platform for futures trading New office open Development of the application for smartphone trading by IT company completed Launch the application for smartphone trading For the period from 1 December 2016 to 31 May 2017 N/A Entering into the stock option brokerage business Acquire hardware for trading stock options Installation of the stock option trading system completed and test run the system Application for option trading exchange participantship or option broker exchange participantship Upgrade the hardwares for the securities and futures trading system Implementation of internet trading platform for futures trading completed Launch internet trading platform for futures trading For the period from 1 June 2017 to 30 November 2017 N/A Entering into the stock option brokerage business Recruit a new Responsible Officer for the stock option brokerage business 130

N/A Entering into the stock option brokerage business Acquire hardware for trading stock options Installation of the stock option trading system completed and test run the system Application for

3 Objectives Activities Use of proceeds (HK$ million) Commence to offer stock option brokerage service N/A For the period from 1 December 2017 to 31 May 2018 N/A Entering into the stock option brokerage business N/A N/A Notes: 1. The use of the relevant proceeds includes the salary of the new staff during the relevant period. 2. The use of the relevant proceeds includes the rentals of the new office and salary of the new staff during the relevant period. 3. The use of the relevant proceeds represents the salary of the newly recruited Responsible Officer during the relevant period. 4. The use of the relevant proceeds represents the rentals of the new office during the relevant period. 131

The use of the relevant proceeds includes the rentals of the new office and salary of the new staff during the relevant period. 3.

4 BASIS AND ASSUMPTIONS The Directors have adopted the following principal assumptions in the preparation of the future plans up to and including 31 May 2018: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) the Group will be able to retain all relevant licences required to conduct its existing businesses; there will be no material changes in the existing political, legal, fiscal or economic conditions in Hong Kong; there will be no material changes in the bases or rates of taxation in Hong Kong or in any other place in which any member of the Group is incorporated; the Group is able to maintain its existing clients and expand its clients portfolio as planned; the will be completed in accordance with and as described in the section headed Structure and conditions of the in this document; the Group will be able to retain its key staff in the management and the professional staff; the Group will be able to recruit suitable staff for its expansion when and if necessary; the Group will obtain equity and/or debt capital for its future growth when it becomes necessary; the Group will not be materially affected by any risk factors set out in the section headed Risk factors in this document; and the Group will be able to continue its operation in substantially the same manner as it has been operating during the Track Record Period and the Group will also be able to carry out its development plans without disruptions. 132

in Hong Kong; there will be no material changes in the bases or rates of taxation in Hong Kong or in any other place in which any member of the Group is incorporated; the Group is able to maintain

5 USE OF PROCEEDS The net proceeds of the to the Company, after deducting underwriting commission and other expenses relating to the payable by the Company and based on a of, being the mid-point of the indicative range of HK$ to HK$ per, assuming the is not exercised, will be approximately HK$ million. The Directors presently intend that the net proceeds will be applied as follows: To the extent that the net proceeds are not immediately required for or applied to the above purposes, the Company may hold such funds in short-term deposits with licensed banks and authorised financial institutions in Hong Kong for so long as it is in the Company s best interests. 133

The Directors presently intend that the net proceeds will be applied as follows: To the extent that the net proceeds are not immediately required for or applied to the

6 The Company will make an appropriate announcement and comply with the requirements of the GEM Listing Rules if there is any change to the above proposed use of proceeds. 134

FUTURE PLANS AND USE OF PROCEEDS

FUTURE PLANS AND USE OF PROCEEDS FUTURE PLANS AND BUSINESS OBJECTIVES We intend to expand our business in line with the strategies set out in the paragraph headed Business strategies under the section headed Business of this [REDACTED].