Pulp and paper-maker Kanstar Environmental Technology Holdings hopes to raise HK$25.3 million via a Growth Enterprise Market listing to expand production capacity.
Set up in May 1999, the company developed a filling material that reduces the use of wood and improves pulp and paper-manufacturing quality.
It bought a paper factory in Yunnan province, which started production a year ago and began sales in October.
Net loss amounted to HK$5.46 million last year, up from a loss of HK$1.71 million in 2000. Turnover was HK$2.9 million, compared with zero in 2000.
The company plans to spend HK$9.9 million of the listing proceeds setting up an additional pulp and paper production line, which will raise annual capacity from 10,000 tonnes to 20,000 tonnes by early next year.
A further HK$7.5 million will be used to establish a paper-filling material production line to raise annual capacity from 1,000 tonnes to 25,000 tonnes by the end of 2004.
