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Qualipak International Holdings Limited
確 利 達 國 際 控 股 有 限 公 司
(Incorporated in Bermuda with limited liability) Website: www.qualipakhk.com
(Stock Code: 1332)
BUSINESS UPDATE
The representatives from Amazing Bay Limited, the controlling shareholder of the Company, recently conducted a review on the financial position and the operations of the Company with the management of the Company. After the review, the Board decided to set the long-term business plans and strategy of the Company in the following direction:
(I) Rationalizing business operations and assets of the Group
Some of the Group's assets are not bringing sufficiently high returns to the Group. In view of that, the Company aims to rationalize the assets of the Group by increasing their productivity and returns and to seek ways to reduce costs. The conditional agreement dated 28 November 2014 in relation to the disposal of a wholly-owned subsidiary of the Company which owns a commercial property in Hong Kong is the first step embarked upon by the Company in taking a more aggressive approach to redeploy the fixed assets of the Group. The Company will continue to review the assets portfolio and businesses of the Group from time to time and to consider different alternatives such as disposal and/or "sale and lease back". This aims to unlock the "hidden" value of the assets of the Group and release financial resources so that the Company could re-invest more effectively in areas with stronger future earning potentials. Furthermore, the Company will consider implementing a cost reduction program including but not limited to potentially relocating production plant and factory to lower-cost areas in order to reduce operating costs.
(II) Exploring new business opportunities in the "GREEN Business"
In the current world of increasing environmental friendly consciousness, many companies began capitalizing on growing consumer desire for sustainable business by "greening" their practices to
consume less energy and make them more environmentally friendly (
). Today, "Green
Business" is an extremely profitable branch of the business world, and it hosts a range of companies, from prestigious multinational companies to small, locally-based companies and it spreads over every industry. It is also believed that "Green Business" will drive the future growth of GDP of many developed and developing countries and thus it is believed that investing in "Green Business" could lead to long-term returns to the Group that will at the same time bring substantial benefits to society.
In view of the above, the Company will study market potentials, and to identify investment opportunities in the "Green Business".
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(III) Developing financial and investment businesses
The slowing down of the Chinese economy, fragile recovery in the Euro area, and speculation that the US Federal Reserve will increase interest rates by mid-2015 while the dollar exchange rate rose have together caused uncertainty in future economic growth and more speculation in investment market in the world. It is believed that the securities and investment market will become volatile, triggering more stimulus and rebound in markets in Hong Kong and elsewhere. Furthermore, since the launch of Shanghai-Hong Kong Stock Connect in November 2014 and the 10th anniversary of Hong Kong's offshore Renminbi market in 2014, it is expected to bring further business and investment opportunities in Hong Kong.
In order to capture business and investment opportunities on a timely basis, the Group decided to develop the securities investment and trading business as well as money lending business and to make them principal businesses of the Group. The securities investment and trading business will comprise both long-term and short-term investments in listed and unlisted securities with a primary focus in Hong Kong, with an aim to generate dividend income as well as capital gains for the Company.
The Company will continue to study whether any asset disposal, asset acquisition, business rationalization, business divestment, fund-raising, restructuring of the business and/or business diversification will be appropriate in order to implement the above-mentioned strategy of the Company.
As at the date of this announcement, save for the aforesaid disposal of a wholly-owned subsidiary as announced by the Company on 28 November 2014, the Company has not entered into any agreements, arrangements or understandings in relation to (i) disposal, termination or scaling-down of the Group's existing business; (ii) disposal of the Group's assets other than those in its ordinary and usual course of business; and (iii) injection of any new business into the Group.
Further announcement will be made by the Company as and when appropriate.
Shareholders and/or investors are advised to exercise caution when dealing in the Company's securities.
DEFINITIONS
Unless the context requires otherwise, terms used in this announcement shall have the following meanings: "Board" the board of directors
"Company" Qualipak International Holdings Limited (Stock Code: 1332), a company incorporated in Bermuda with limited liability and the issued shares of which are listed on the main board of The Stock Exchange of Hong Kong Limited
"GDP" gross domestic product
"Group" the Company and its subsidiaries
"Hong Kong" the Hong Kong Special Administrative Region of the People's Republic of
China
By order of the Board
Qualipak International Holdings Limited
Lam How Mun Peter
Chairman
Hong Kong, 8 January 2015
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As at the date of this announcement, the Board comprises the following directors:-
Executive Directors
Ms. Poon Ho Yee Agnes (Managing Director)
Ms. Sun Dixie Hui
Non-executive Director
Dr. Lam How Mun Peter (Chairman)
Independent Non-executive Directors
Mr. Chan Sze Hung
Mr. Ha Kee Choy Eugene
Mr. To Shing Chuen
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