Water treatment technical service provider UCL Group and fibre manufacturer Zhejiang Yonglong Enterprises are the latest companies to seek flotations on the Growth Enterprise Market (GEM) with plans to raise a combined total of about HK$97 million. UCL plans to raise about HK$32.2 million by placing 92 million new and existing shares at 35 HK cents each. H-share Zhejiang Yonglong hopes to generate HK$65 million by placing 250 million shares at 26 HK cents each. According to UCL's listing prospectus, the company recorded a net profit of HK$1.49 million for the year to March 31, compared with a net loss of HK$260,000 the previous year. UCL financial controller Brian Lee said the company had been helped by a substantial increase in the value of water treatment contracts it had secured during the period. UCL managed to secure contracts worth HK$6.8 million in the year to March 31 against HK$4.15 million previously. For the following 12 months, the company had contracts on hand worth HK$7 million in Hong Kong and the mainland. It also had secured two mainland water treatment projects. Its shares will start trading on November 15. Zhejiang Yonglong chairman Sun Liyong said the company hoped to raise net proceeds of about HK$50.5 million through its flotation. About HK$46 million would be used to buy equipment to expand production capacity. Mr Sun said the group's collaboration with Dupont China would help sales grow to about 680 million yuan (HK$641.7 million) next year from 93 million yuan in 2000.