THE sole distributor for Fuji products in Hong Kong, China and Macau is gearing up its mainland investment, which could mean a flotation. Sources say China-Hongkong Photo Products Holding is already arranging a listing on the Hong Kong Stock Exchange. While managing director Dennis Sun Tai-lun would not confirm the speculation yesterday, he did not rule out a listing at the right time. ''That will depend on the market situation. If China's photography market develops fast enough to create opportunities for big investment on our part, then we will consider a listing exercise.'' The company distributes photographic roll film (which account for 70 per cent of the group turnover), cameras and a range of goods made by Japan's Fuji Photo Products Co. Fuji products account for 99 per cent of its turnover. The company is set to invest between US$1 million to $2 million for majority stakes in two mainland joint ventures, which are still being negotiated. Mr Sun said the investment could be financed by internal resources. The ventures will provide service and training to Fuji retailers on the mainland, and market products. They will also organise Fujicolor Circle Scheme, under which member dealers agree to exclusively use Fuji photographic paper and chemicals in their developing and processing service, and to display and sell certain Fuji products in their shops. A Fujicolor Circle Scheme is already in operation in Hong Kong. Mr Sun expected the joint ventures would be secured within two months. They would boost sales as they enhanced the service to Fuji product users in China, he said. ''Our main aim is to help our customers [retailers of Fuji products] do a good job so that more consumers will use Fuji products. That will raise our sales,'' he said. The company already has a joint venture with similar functions in Beijing. ''We're also waiting for opportunities to take part in China's photography industry, such as in the production of photo products.'' Mr Sun estimated Fuji films had more than a 50 per cent market share in China. Other players include Konica, Mitsubishi, Agfa and Kodak. He said the mainland held huge potential. ''China's photography market is just starting. Only five roll films are used by 100 Chinese annually, while 300 roll films are used by 100 people annually in both the United States and Japan. ''And we've observed that Chinese people like taking pictures. As a couple can only have one child, they develop many copies of pictures of their child to give to relatives.'' He said the trade would also withstand negative factors in the economy. ''Photography is a basic necessity rather than consumption. For instance, you need photos to apply for a visa. You need about 10 when you try to find a job.'' But he noted there were difficulties in the Chinese market. ''Some of our customers (retailers of Fuji products) take a short-term view in doing business. They don't understand only quality products and service can keep customers. ''Also, there are bogus Fuji products. Fortunately, the situation has been improving with China's preparation for its re-entry in the General Agreement on Tariffs and Trade.'' China accounts for about 65 per cent of turnover for the group, which has been doing business on the mainland since 1979 when the country opened up its economy to foreigners.