STATEMENT OF BUSINESS OBJECTIVES AND USE OF PROCEEDS

Transcription

1 BUSINESS OBJECTIVES AND STRATEGIES Please refer to the paragraph headed Business strategies under the section headed Business in this document for the Group s business objectives and strategies. IMPLEMENTATION PLANS In order to implement the business objectives and strategies as described above, set forth below are the implementation plans of the Group for each of the six-month periods from the Latest Practicable Date until 31 March It should be noted that the implementation plans are formulated on the bases and assumptions referred to in the paragraphs under the sub-section headed Bases and assumptions below. These bases and assumptions are subject to many uncertainties and unpredictable factors, in particular the risk factors set forth in the section headed Risk factors in this document. There can be no assurance that the plans of the Group will materialise in accordance with the expected time frame or that the objectives of the Group will be accomplished at all. The Directors intend to carry out the following implementation plans. From the Latest Practicable Date to 31 March 2017 Strengthen the Group s available financial resources to carry out the Tender Contracts [REDACTED]. Finance the payment of the salaries of the Group s full time and part time staff to reduce the financial impact on the time lag between making payment of salaries to the Group s employees and receiving payments from its [REDACTED]. Edit and print company brochure and marketing materials. Design and implement online. Upgrade training facilities and employ training officers to provide training to employees [REDACTED]. Employ additional managerial staff and skillfull workers. Acquire additional equipment such as water wagons and cullet crusher 198

2 Enhance the IT system to strengthen operational efficiency and service qualities [REDACTED]. Upgrade the IT system by way of upgrading server and improvement of server location. Enhance daily operation by procuring cloud storage and cloud server services. Maintenance of IT systems and softwares. Addition of IT equipment at headquarters and worksites Working capital and general corporate use [REDACTED]. Use of working capital for business growth and operation needs 199

3 For the six months ending 30 September 2017 Strengthen the Group s available financial resources to carry out the Tender Contracts [REDACTED]. Finance the payment of the salaries of the Group s full time and part time staff to reduce the financial impact on the time lag between making payment of salaries to the Group s employees and receiving payments from its and thepossibleincreaseinthe statutory minimum wage [REDACTED]. Distribution of company brochure and marketing materials to target. Continue to maintain online. Participate in marketing events as well as activities held by environmental protection and health organisations. Social media management [REDACTED]. Employ additional managerial staff, skillful workers and safety officer. Upgrade marble polish machine and acquire additional equipment such as hook-lift truck, aerial platform vehicle and ride-on scrubber driers Enhance the IT system to strengthen operational efficiency and service qualities [REDACTED]. Enhance daily operation by procuring cloud storage and server services. Maintenance of IT systems and softwares. Addition of IT equipment at headquarters and worksites 200

4 For the six months ending 31 March 2018 [REDACTED]. Distribution of company brochure and marketing materials to target. Continue to maintain online. Participate in marketing events as well as activities held by environmental protection and health organisations. Social media management Enhance the IT system to strengthen operational efficiency and service qualities [REDACTED]. Employ additional skillful workers. Acquire additional equipment such as garbage compressor vehicle and escalator cleaners [REDACTED]. Enhance daily operation by procuring cloud storage and server services. Maintenance of IT system and software. Addition of IT equipment at headquarters and worksites 201

5 For the six months ending 30 September 2018 [REDACTED]. Distribution of company brochure and marketing materials to target. Continue to maintain online. Social media management. Upgrade training facilities Enhance the IT system to strengthen operational efficiency and service qualities [REDACTED]. Employ additional skillful workers. Acquire additional equipment such as cleaning carts and garbage compressor vehicle [REDACTED]. Enhance daily operation by procuring cloud storage and server services. Maintenance of IT systems and softwares. Addition of IT equipment at headquarters and worksites 202

6 For the six months ending 31 March 2019 [REDACTED]. Distribution of company brochure and marketing materials to target. Continue to maintain online. Social media management [REDACTED]. Employ additional skillful workers 203

7 BASES AND ASSUMPTIONS The Directors have adopted the following principal assumptions in the preparation of the implementation plan up to 31 March (a) (b) (c) (d) (e) (f) (g) there will be no material changes in the existing political, legal, fiscal or economic conditions, and any other places in which any member of the Group carries on or will carry on business and provides or will provide environmental hygiene and airline catering support related services; there will be no material changes in the bases or rates of taxation or in any other places in which any member of the Group operates or will operate or is incorporated; the [REDACTED] will be completed in accordance with and as described in the section headed Structure and conditions of the [REDACTED] to this document; the Group is able to retain its and suppliers; the Group will be able to retain key staff in the management and the main operational departments; 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 operations in substantially the same manner as the Group has been operating during the Track Record Period and the Group will be able to carry out the development plans without disruptions adversely affecting its operations or business objectives in any way. REASONS FOR THE [REDACTED] AND USE OF PROCEEDS The Directors believe that the listing of the Shares on GEM will enhance its corporate profile and brand image and the net proceeds from the [REDACTED] will strengthen its financial position and will enable the Group to implement its business plans set out in the paragraph headed Implementation plans above. Furthermore, a public listing status on the Stock Exchange will offer us access to capital market for corporate finance exercise to assist in future business development, enhance its corporate profile and strengthen its competitiveness. During the Track Record Period, the Group utilised the banking facilities, internal resources and/or amount due to related parties to finance its business activities. The Group believes that the Listing would broaden not only its equity financing alternatives but also enable the Group to seek bank financing at more favourable terms given its Listing status. The net proceeds from the [REDACTED], after deducting the related expenses, are estimated to be approximately HK$[REDACTED] (based on the [REDACTED] Price of HK$[REDACTED] per [REDACTED] Share, being the mid-point of the indicative [REDACTED] Price range). The Directors presently intend that the net proceeds will be applied as follows: strengthening the Group s available financial resources to carry out the Tender Contracts; 204

8 increasing the market penetration by ; strengthening the established position in ; enhancing the information technology system to strengthen operational efficiency and service qualities; and the use as general working capital of the Group. In summary, the implementation of the Group s business objectives and strategies from the Latest Practicable Date to 31 March 2019 will be funded by the net proceeds from the [REDACTED] as follows (based on a [REDACTED] Price of HK$[REDACTED] per [REDACTED] Share, being the midpoint of the indicative [REDACTED] Price range): From the Latest Practicable Date to For the six months ending 31 March September March September March 2019 Total HK$ million HK$ million HK$ million HK$ million HK$ million HK$ million Strengthen the Group s available financial resources to carry out the Tender Contracts [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] Increase the market penetration by strengthen the promotion of the [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] Strengthen the established position in the environmental services industry in Hong Kong [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] Enhance the information technology system to strengthen operational efficiency and service qualities [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] Working capital and general corporate use [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] The Directors consider that the net proceeds from the [REDACTED] will be sufficient to finance the Group s business plans up to the year ending 31 March

9 In the event that the [REDACTED] Price is set at the high-end of the proposed [REDACTED] Price range, the net proceeds of the [REDACTED] will increase of approximately HK$[REDACTED], after deducting related expenses. In such event, the net proceeds will be used in the same proportions as disclosed above. In the event that the [REDACTED] Price is set at the low-end of the proposed [REDACTED] Price range, the net proceeds of the [REDACTED] will decrease by approximately HK$[REDACTED], after deducting related expenses. In such event, the Group intends to reduce such HK$[REDACTED] on one of the Group s business strategies, namely strengthen the Group s available financial resources to carry out the Tender Contracts. As a result, the total proceeds to be applied on that strategy will be approximately HK$[REDACTED] and the Group then intends to apply approximately HK$[REDACTED] from the Latest Practicable Date to 31 March 2017 and approximately HK$[REDACTED] for the six months ended 30 September 2017, respectively. To the extent that the net proceeds from the [REDACTED] are not immediately required for the above purposes, it is the present intention of the Directors that such net proceeds be placed in short-term interest bearing deposit accounts held with authorised financial institutions. Should the Directors decide to re-allocate the intended use of proceeds to other business plans and/ or new project of the Group to a material extent and/or there is to be any material modification to the use of proceeds as described above, the Group will issue an announcement in accordance with the GEM Listing Rules. 206