Company introduction

Accor is a branded marble manufacturer with the largest marble mine and distribution network in China. The company currently owns and operates Yongfeng Electric. Yongfeng Mine is located in Yongfeng County, Jiangxi Province, China. Its mining license covers an area of about 2.0 square kilometers. The initial period is five years from February 5, 2013 to February 5, 2018. Furthermore, the company has the right to renew the mining license period for 25 years through four equal installments of RMB 37.2 million per year over the next four years plus accrued interest. According to the F&S report, as of September 30, 2013, Yongfeng Mine's discovered, controlled and deduced resources were 106.9 million cubic meters, while the proven and approximate profit was 44.2 million cubic meters. The company had 63 distributors, making it the largest marble distribution network in China, and a small number of its products were also sold to overseas markets. For the period ending June 15, 2011 to December 31, 2011, for the year ended December 31, 2012, and for the nine months ending September 30, 2013, the company's revenue was approximately RMB 173,000, RMB 8.210 million, and RMB 92.054 million; revenue (loss) for the year/period was RMB (loss) divided into RMB (438.5) million yuan, RMB (1,942.1) million yuan and 9.321 million yuan.

Assumed use of proceeds

Assuming that the over-allotment rights were not exercised, the net proceeds from the sale of shares were estimated to be approximately HK$816 million based on the median sale price of HK$2.73 per share. The Board of Directors proposes to use the net proceeds for the following purposes: