COMPETITIVE STRENGTHS

We believe that the following competitive strengths contribute to our success and differentiate us from our competitors:

Our mechanical splicing services are innovative and unique

We process the reinforcing bars and connect them to our couplers in a way that strengthens and avoids premature failure of reinforced concrete objects.

We provide two types of reinforcing bars processing services: one under our trademark ‘‘Servisplice’’ (‘‘Servisplice Services’’) and the other one under our trademark ‘‘Seisplice’’ (‘‘Seisplice Services’’). Servisplice Services do not add ductility to the mechanical splicing systems, unlike Seisplice Services which add seismic-resistance and ductility to the mechanical splicing systems.

We use our reinforcing bar cutting machines, and self-developed CNC crimping machines and CNC threading machines to process the reinforcing bars. Our machines are automated, practical, and easy to assemble and use. Automated processing also helps us to achieve efficiency in production, maintain high quality of our services and minimize human error, as well as reduce overhead expenses since the machines can be operated by a minimum number of employees.

In particular, our self-developed CNC crimping machines used for Seisplice Services apply our innovative patented method of controlled crimping of the reinforcing bars. Our method of controlled crimping does not change the diameter of reinforcing bars and results in stronger connection between the reinforcing bars and couplers. We have been granted a patent for our controlled crimping method of processing reinforcing bars in Hong Kong. Our patent is valid for eight years from August 1, 2012 and was transferred to our Group on May 26, 2017.

We apply dynamic rolled threading on reinforcing bars to preserve and strengthen structural integrity of the reinforcing bars. For both Servisplice and Seisplice Services, we use our self- developed CNC threading machine to conduct dynamic rolled threading. This creates a stronger interlock between the reinforcing bars and the couplers, resulting in stronger reinforced concrete construction.

We also provide repair couplers named ‘‘iSplice’’. We have been granted a patent in the U.S. in relation to our iSplice couplers. The patent is valid for 20 years from June 21, 2013.

We designed water-stop couplers that are used underwater or underground. We have been granted a patent in Hong Kong and PRC in relation to water-stop couplers. The Hong Kong patent is valid for four years from August 16, 2016, while the PRC patent is valid for 10 years from July 18, 2016.

SERVISPLICE – TYPE I

SEISPLICE – TYPE II

We are committed to complying with and even exceeding applicable industrial and safety standards and quality control

We place considerable emphasis on meeting safety standards and quality control as they can directly affect our reputation, service quality and profitability. Our management system was certified to be in accordance with ISO 9001:2008 quality management system standard. Our services in Hong Kong are carried out by our trained employees to ensure our prescribed procedures and quality requirements are met. Our couplers are inspected by our suppliers prior to delivery to us. On receipt of couplers in Hong Kong, upon requests from our customers, tests are conducted on the couplers by an accredited laboratory in Hong Kong. The couplers that we use satisfy applicable Hong Kong requirements (2013 Code, 2004 Code and AC133). Since December 11, 2015, our couplers have been listed on the List of Building Materials (Mechanical Couplers) of the Central Data Bank of the Buildings Department as couplers accepted by and which meet the safety standards required by the Government. We undertake tests to ensure that our Servisplice and Seisplice Services comply with and even exceed the applicable standards. Our strict quality control policy and systematic working procedures are aimed at ensuring that the interlock between the processed reinforcing bars and couplers excel those of our competitors. Our Directors consider that our efforts in upkeeping the quality and innovation of our services have been recognised by our major customers.

Stable relationship with our major customers and the OEM Factory

We have established a stable business relationship with our major customers, most of which are reputable main contractors and subcontractors. Since 2013, our business has grown from serving a few customers to serving 88 customers as at December 31, 2017. We have been engaged by reputable main contractors since 2013. We have also established a stable business relationship with the OEM Factory. During the Track Record Period and up to the Latest Practicable Date, we had purchased our couplers from the OEM Factory, either through BOSA (Taiwan) or our Taiwan branch office. Our Directors are of the view that our operating history, together with the stable relationships with our major customers and the OEM Factory would increase our service quality and enable us to attract potential business opportunities.

Possession of self-designed equipment for performing our services

We have designed and developed our own CNC threading machines and CNC crimping machines. We also own reinforcing bar cutting machines, cranes and other moving machines. Accordingly, we do not have to rely on providers of equipment rental. We have made substantial investment in our equipment. For the years ended June 30, 2016 and 2017 and the six months ended December 31, 2017, we spent approximately HK$0.8 million, HK$0.8 million and HK$0.5 million, respectively, on acquiring new plant and machinery (including our self-designed equipment), and approximately HK$1.5 million and HK$2.4 million to acquire the other equipment (such as, fixtures and motor vehicles) and carry out leasehold improvements. As at December 31, 2017, our plant and machinery had a total net book value of approximately HK$3.0 million. We believe that our investment in different types of machines used to provide our services has placed us in a position to cater for construction projects of different scales and complexity.

Our Directors also consider that possession of our own equipment allows us to devise suitable works schedules and methods tailored to different needs and requirements of different customers, and enables us to efficiently and effectively schedule our work and deploy our manpower.

Experienced project management team

Our management team has extensive industry knowledge and project experience in the construction services industry. Mr. K. Lim, our executive Director and Chief Executive Officer, Mr. P. Lim, our executive Director and Chief Operating Officer manager, has approximately 19 years and 9 years of experience in the construction industry. Mr. Yang, our technical manager, has over 25 years of experience in engineering, respectively in providing construction related services for both public and private sector projects. We also have our in-house quality control, technical and production personnel. This enables us to organize and advance our projects efficiently and provide quality services. For details of the qualification and experience of our Directors and Senior Management, please refer to the section headed ‘‘Directors and Senior Management’’ in this prospectus. Their qualifications and experience help to formulate competitive quotations, which are essential in securing new business opportunities for our Group and to manage our projects. Our Directors believe that the combination of our management and technical teams’ expertise and knowledge of the industry have been and will continue to be our Group’s valuable assets and strive our Group towards greater success.