Business summary
MGM Group is an information technology infrastructure solution provider with a long history based in Hong Kong. According to the Ipsos report, according to the Ipsos report, the group ranked first among Hong Kong's ICT infrastructure solution providers in terms of revenue in the fiscal year 2015, accounting for about 3.1% of total industry revenue, and as an authorized dealer for over 30 hardware and software manufacturers. The group's main business includes providing (i) information technology infrastructure solution services; and (ii) information technology management services, in the 2015 financial year During the recording period, the group's customers were sorted from The public sector and the private sector, while customers in the public sector mainly include the Hong Kong government and public institutions. In addition, the private sector also includes commercial customers from the banking, telecommunications and transportation sectors.
Competitive advantage
A leading market position in terms of revenue in Hong Kong and a long history in the information technology infrastructure solutions industry and a strong relationship with well-known hardware or software manufacturers. As far as the number and variety of regular customers is concerned, the Group has a broad and stable customer base
Risk Factors
The Group relies on the recruitment and retention of qualified employees, so any shortage of manpower or an increase in direct labor costs may seriously hinder the Group's business operations
Customers' preferences are highly subjective; therefore, failure to meet clients' personal preferences or may cause customers to be unsatisfied, which may damage business reputation and the opportunity for bad groups to secure contracts or orders in the future
The disclosure or improper use of confidential data processed by a group or subcontractor may adversely affect the Group's reputation and business operations
Use of proceeds
Approximately 35% is used to improve information technology management systems
About 25% is used as collateral for execution of loans to enhance the ability to undertake large-scale contracts
About 20% is used to recruit and train employees
Approximately 10% will be used to strengthen market promotion efforts
Approximately 10% is used as general working capital