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HK Listing Company

HK6 Holdings Limited
(Stock Code: 8206)

Listing Date:

15 November 2002

Offer Price:

HK$0.3 per share

Par Value:

HK$0.01 each

No. of Shares under the offer :

70,000,000 shares

No. of Shares under Placing:

60,000,000 Placing Shares

No. of Share under Public Offer:

10,000,000 Shares

Market Capitalization:

HK$120.0 million

Sponsor:

Tai Fook Capital Ltd

Chairman:

Ms. Chan Tan Lui, Danielle

Fund Raising

HK$21.0 million

Major Shareholder:

  • Ms. Chan Tan Lui, Danielle – 26.77% interest
  • Mr. Chan Wing Luk – 24.25% interest

Company Subsidiaries:

  • Smart Talent (100%): Production of programs and videos and provision of investor education
  • Hk6.com (100%): Production and distribution of real time financial information
  • HK6 Media (100%): Development of business alliances with media channels.

COMPANY OVERVIEW

The Group is a multimedia financial information services provider offering a comprehensive range of financial information services which include the provision of (1) real time financial news and up-to-date financial market commentaries and recommendations through multimedia; (2) financial programme and video production services; and (3) investor education on financial market in Hong Kong.

The Group's services are characterized by its capability to distribute the information or services through various media channels including stock terminal channels, outdoor advertising media, television networks, Internet and other mobile devices, as well as it ability to produce original financial programmes and source real time financial news and insightful financial market commentaries and recommendation through its in house reporter team and Celebrities to both professional and public investors. The Group aim at becoming one of the leading and most comprehensive multimedia information services providers in Hong Kong and the PRC.

In addition, the Group has developed good relationship with a number of well known financial market commentators, analysts and columnists in Hong Kong and some of them have become the Group's celebrities. Up to the Latest Practicable Date, the Group has entered into memoranda of understanding with 12 Celebrities (including Mr. Tang who is an executive Director) and in the case of Mr. Chan, a consultancy agreement with the Group, Capitilising on the strong support from the Group's Celebrities, the Group has developed a reputation of being a provider of up-to-date financial market commentaries and recommendtaions.

COMPETITIVE ADVANTAGES

The Directors believe that the Group has the following competitive advantages:

  • The Group' s well positioned to capture the growing demand for quality financial information and the enriched and localized financial content provided by the Group and its extensive coverage in different media will enhance customer loyalty and the Group's brand name.
  • The existing shareholders, Mr. Chan and Mr. Tang, have been actively involved in the Hong Kong financial market and media businesses. They have extensive experience and knowledge financial market and are well-known financial commentators and analysts in Hong Kong.
  • Good relationship with the Group's Celebrities
  • Early mover advantage in providing multimedia financial information services

RISK FACTORS

  • Limited operating history and profitability;
  • Investment adviser license;
  • Reliance on Mr. Chan Wing Luk;
  • Potential competing interests of Mr. Chan Wing Luk;
  • Dependence on the Group's Celebrities;
  • Dependence on certain initial Management Sharehoders;

FINANCIAL RECORD

 

From 4th Oct 1999 to 31st March 2001 (HK$')

Year ended 31st March 2002 (HK$')

Turnover

231,954

3,247,026

Profit/(Loss) before tax

(6,295,571)

(2,705,492)

Net profit

(6,347,585)

(2,765,516)

Total Assets

5,544,975

3,759,178

Total Liabilities

4,229,227

4,258,946

Total equities

1,315,748

(499,768)

FUTURE PLANS

The Group aim to become a leading and one of the most comprehensive multimedia financial information services providers in Hong Kong and to establish market presence in the PRC's financial information service market. The Group seeks to achieve this objective by capitalizing on the growing number of investors who demand for quality real time financial information and are interested to invest in the PRC and Hong Kong stock market.

The Group seeks to pursue additional strategic alliances and business partnerships with media channels and Celebrities in the PRC. In addition, the Group will continuously seek opportunities to increase its presence in the PRC market through the acquisition of financial information services providers or assets that have the potential for synergies with its existing businesses so as to achieve increased operating efficiencies.

The Group will continue to strengthen and diversify its media channel partners in Hong Kong for the distribution of financial information by pursuing strategic alliances and business partnerships and/or acquiring financial information services providers or assets. The Group intends to further line up with complementary media channels and expand the network of stock terminal channel, Internet content providers, outdoor advertising media, television network and other mobile devices operators for the distribution of its financial information.

The Group intends to expand its reporting and editorial staff to enhance prompt and up-to-date financial market news for drawing and retaining audience. The Directors believe that only comprehensive and latest financial information produced by an experienced reporting and editorial team can attract a continuous flow of audience. In addition, the Group will continue to establish relationship with well known and reputable financial commentators, analysts and columnists in HK and will invite them to become the Group's Celebrities. The Directors believe that the Group's Celebrities will be effective spokespersons for the Group's various products and services.

USE OF PROCEEDS

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$16.9 million (based on the offer price HK$0.30 per share). The Group at present intends to apply the net proceeds as follows:

Development of strategic alliances and business partnerships in the PRC

27.2%

Media channels development in Hong Kong

15.4%

Services development and enhancement

36.1%

Sales and marketing

9.5%

Working capital

11.8%

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