Smartcard-maker Cardlink Technology Group is about to raise HK$37.6 million by floating on the Growth Enterprise Market (GEM), placing 80 million new shares at 47 HK cents each. The group, established in 1995, is engaged in the research and development of smartcard technology and the provision of customised smartcard application systems. Its net profit in the five months to May 31 was HK$4.11 million, while turnover was HK$20.34 million. Basic earnings per share were 1.71 HK cents. Executive director Anton Ho Lut-wa said the group would use 30 per cent of its proceeds to set up a factory and several selling points in southern China in the first and second quarters of next year. The firm also planned to open an office in Shanghai. Mr Ho said Cardlink did not plan to move existing production plants from Hong Kong to China. 'The factory in China will increase the capacity of our production, which enables us to satisfy the need of our customers in the mainland,' Mr Ho said, adding the rest of the proceeds would be spent on sales and marketing activities and research and development. Cardlink is at the final stage of an application to become an authorised card manufacturer for Visa International. The placing result will be announced on Tuesday.