Coslight Technology International Group, a privately held mainland battery-maker, aims to raise more than $100 million through a flotation in Hong Kong next month. The company planned to set its issue price at between six to eight times this year's prospective earnings on a fully diluted basis, market sources said. This would mean a range of between $1-$1.45 each for about 100 million new shares. About 75 per cent of the new shares will be earmarked for international placing and the remainder offered for public subscription in Hong Kong at the end of this month. The company is currently 90 per cent owned by chairman Song Dianquan. The listing does not require prior China Securities Regulatory Commission approval because the mainland assets are held by a Bermuda-incorporated company. Mr Song said the company was the mainland's largest producer of fixed-valve regulated sealed-lead acid batteries, which are mainly used for stand-by power supply for telephone and telecommunication exchanges and for uninterrupted power supply for power stations. The products have maintained a gross profit margin of more than 50 per cent in recent years through cost control and the launch of new models. Coslight made 65 million yuan (about HK$60.6 million) of net profit on turnover of 200 million yuan last year. This compares with 45 million yuan net profit on 120 million yuan turnover the previous year. Mr Song said the company planned to invest about 30 million yuan to boost production capacity and production of components. He said he expected the market would grow 15 per cent a year in the next few years on the strong growth of the telecom industry. The company also planned to build production lines for lithium ion batteries. It intended to spend 40 million yuan on production lines with annual capacity of two million units by 2001, expanded to six million by 2003. Those products would provide a gross profit margin of between 45-50 per cent. Mr Song said lithium ion batteries had anticipated potential growth of 30 per cent a year, from 1.5 billion yuan in sales this year to three billion yuan by 2003. Mass production of this product would begin in the second half next year. The company benefits from preferential tax policies, paying 7.5 per cent in corporate tax up to next year, and 15 per cent from 2001. NEW LISTINGS