Our business strategies and future plans for the growth and expansion of our business are described below:-
We plan to expand our sales network and activities in the Guangdong, Jiangxi, Hainan, Zhejiang and Fujian Provinces, where we believe there is continual demand for our products and potential for business opportunities. We believe that in these provinces, there are still potential customers which remain untapped. In particular, we plan to establish a branch office in Chaozhou City which will be our head office in carrying out our sales and marketing activities. We also intend to enlarge our network of distributors and leverage on their customer base. Hence, we intend to set up sales offices in these provinces by the end of FY2007 to conduct sales activities and provide us with access to the untapped customer base.We also plan to grow our customer base by increasing our marketing efforts to overseas customers. We intend to use approximately RMB 40.0 million of the net proceeds from the Invitation to fund this future plan.
We believe that it is essential that we continue to enhance our production facility and improve the productivity and efficiency of our production process, so as to enhance our competitiveness and give us an edge over our competitors. To improve our production efficiency, we intend to utilise RMB 16.0 million of the net proceeds from the Invitation to purchase additional plant and machinery, such as a dyke, and new pipelines and valves. to upgrade our existing facilities by the end of FY2007. In addition, we plan to utilise RMB 4.0 million of the net proceeds from the Invitation to computerise our production workflow, in particular, the mixing process of propane and butane and the LPG discharge process by the end of FY2007. The use of specialised software programs to perform and monitor the mixing function can help reduce reliance on human judgement and the risk of errors. It will also shorten production time and better satisfy customers' requirements.
In addition to growing organically, we may consider expanding our business by entering into acquisitions, joint ventures or strategic alliances with parties who create synergistic values with our existing business. Through such acquisitions, joint ventures and strategic alliances, we are looking to strengthen our market position, value-add as well as allow us to expand into new businesses complementary to our existing business. As at the Latest Practicable Date, we are not engaged in any form of discussion with any potential party to acquire its business or form joint ventures or strategic alliances with. We believe that our status as a listed company will position us to take advantage of such opportunities as and when they arise. Should such opportunity arise, we will seek approval, where necessary, from our Shareholders and the relevant authorities as required by the relevant laws and regulations.