This printed article is located at http://fareastgroup.listedcompany.com/future_plan.html
Our business strategies and future plans for the growth and expansion of our business are set out below:-
We plan to extend our presence to new and emerging markets, such as Australia, New Zealand, Sri Lanka, India and the Middle East through the establishment of subsidiaries and/or representative offices as well as the appointment of new distributors.
We may also expand our sales and distribution network in our existing markets such as Malaysia, Hong Kong, Indonesia and Indochina should business opportunities arise.
We intend to utlilise approximately S$600,000 of our net proceeds from the Placement for the expansion of our sales and distribution network.
We plan to purchase more high-tech machines and equipment (such as CNC machines for the manufacturing of sheet metals) and upgrade our existing machines and equipment at our Maju Facility to increase our manufacturing capacity.
We intend to utilise approximately S$400,000 of our net proceeds from the Placement for the expansion and upgrading of our existing manufacturing facilities.
Our Directors believe that our research and development efforts have contributed significantly to our growth. In order for us to maintain our competitive edge, we plan to continue focusing on our research and development activities to improve our existing "Eden" brand of products and develop new products that are more energy-efficient. We intend to expand our research and development team by hiring more engineers and related personnel, purchasing new testing and measuring equipment and software.
We intend to utilise approximately S$300,000 of our net proceeds from the Placement for our research and development activities.
In addition to growing organically, we may consider expanding our business through 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, increase our network of customers as well as expand into new complementary businesses.
Our Company had entered into option agreements dated 27 June 2011 with certain shareholders of each of the Regional Affiliates, namely UPL and SER, to acquire their respective equity interests in or the assets, businesses and undertakings of the Regional Affiliates. Please refer to the "Interested Person Transactions – Present and On-going Interested Person Transactions" section of this Offer Document for further details on the Acquisition Options.
Save for the Acquisition Options, we have not engaged in any form of discussion with any potential party to acquire its business or form joint ventures or strategic alliances as at the Latest Practicable Date. 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 arises, we will seek approval, where necessary, from our Shareholders and the relevant authorities as required by the relevant laws and regulations.