Company Prospectus

Servicing Industry
Hup Soon Mechanical Works Sdn Bhd has been in the market for the past 30 years and plays a major role in the servicing industries. Basically, we provide a wide range of services which includes the following 3 major categories:

Mechanical Engineering
In this category, we subdivide into Automotive, Repair and Manufacturing.

Automotive
Our expertise in this area involves crankshaft grinding, engine block re-boring, cylinder head grinding and valve seat re-sizing.

Repair
For this category, there is no fixed definition on what we can repair. Our repair services range from Land to Sea to Air. On top of that, we also extend our services to upgrading, such as re-designing and customizing of existing products.

Manufacturing
Currently, we have a production line for the fabrication of mechanical parts for machines and civil engineering sectors.

Civil Engineering
For civil engineering, we specialize in the following four areas:

Earthwork Projects
Our earthwork projects includes tin mining, highways and housing projects. Our major customers include Rahman Hydraulic Tin Sdn. Bhd. , Mamut Copper Mining , Pulau Salak Quarry Sdn Bhd, Kuad Sdn Bhd (Subsidary of UEM & Renong) and so on.

Quarry Projects
In this area, our main tasks are detailed as follows:
  1. To provide earthwork for access road to the rock face for rock blasting.
  2. To transport blasted rock to Primary crusher for loading and unloading.
  3. To maintain the crusher plant.

Building Projects
We undertake projects to build residential houses, commercial shop lots and factory buildings. On top of that, we also take up turnkey projects for housing and factories.

Infrastructure Projects
In this area, our main emphasis is on drainage, culvert, pipe laying , road works for housing and highways.

Development
Most of our development projects are joint-venture projects to develop housing, shop lots and factories for sale.

Growth of the Company
Hup Soon Mechanical Works Sdn Bhd has been expanding since its establishment in 1969. The rapid growth of the company in the recent years is attributed to the range and quality of services that it can provide. We will classify the growth into three phases:

Last 5 years
For the last 5 years, our company has been progressing very steadily. Because of our aggressiveness, we are able to secure many large scale projects for the company. Our major projects include earthwork and overburden removal contract for Rahman Hydraulic Tin Sdn Bhd, maintenance of plant for Mamut Copper Mining Sdn Bhd and Tenaga National Berdad, and Quarry project for Pulau Salak Quarry Sdn Bhd and Kuad Sdn Bhd.

Recent years
In the recent years, we are keeping up with the previous projects as it is continuous but we are more project conscious because the market we want to capture now is different and partly due to the current economy crisis in Asia. Due to that , we are more selective in our projects and customers for the jobs that we are specialized in, to ensure the assurance of quality and competitiveness and not to be trap in the crisis.

Next 5 years
For the coming years, we hope to expand further by:
  1. Engaging in more high technology machinaries to further improve our efficiencies, and quality of service in the Automotive production line and manufacturing environment.

  2. Increasing sales and profit substantially by being more aggressive and targeting to more companies for jobs in our field of specialization.

  3. Exploring the feasibilities of venturing into foreign market and fabrication of other new products.

  4. To have more joint-venture projects whether it is in Mechanical or Civil Engineering.

  5. Once we could secure more joint-venture projects, we will set up a vendor system to help the smaller and medium scale industries to grow

  6. While we are looking at achieving for the above mentioned, we will also look into setting up a Aggregate Quarry and Tin Mining of our since we have all the expertise and the macheneries needed to do.

  7. Finally when the time is right, we will go into listing in the KL Stock Exchange

Percentage of Market Share
Currently, we are able to capture 55 % of the market to engage in our services, be it Automative fabrication, repair or civil engineering works. In order for us to create vendor system and go into listing, we have to capture at least 70 % of the market share and try to own a Aggregate Quarry and Tin Mining in order boost up the sales and the profit margin.

Our sales on average is at RM7,000,000 for now. We hope to increase to RM10,000,000 next year, RM15,000,000 the following year and RM20,000,000 the year after, at an average increasing rate of minimum 30 % to 50% yearly. If we could succeed in setting our own Aggregate Quarry and Tin Mining, our overall sales for all the sectors will be at an average of at least RM 20,000,000 yearly at an increasing rate of minimum 30% yraely..

Competitors and Customers
Most of our competitors are from small and medium industries, and hence have very little impact on our business as we are going to create jobs for them and allowing them to join us in the vendor system.

Mechanical Engineering Sector
  1. Automative
    Basically, we have control of 70% of the market as there is only one direct competitor.

  2. Repair and Manufacturing
    In this area, there is no direct competitor as most of the mechanical repair shops are not equipped with the proper tools and machineries to undertake the repair and manufacturing jobs. Moreover, Hup Soon Mechanical Works has been in the servicing industries for more than 30 years and through these years, we have acquired numerous heavy machineries to perform different tasks that is required. From our years of experience, we have also earned our trust and reputation from our valued customers. Because of that, our company is at a better competitive advantage over these small industries. Therefore, we are able to capture at least 55% of the market share.

Civil Engineering Sectors
This area requires a lot of high technology machineries and experience and most importantly, trust from our customers. We are able to secure a few turnkey projects from our previous customers and usually, we have no difficulty in securing more projects as we are able to maintain a good reputation among our customers with the quality of work we produce and the service we offer.

Business Plan
We hope to expand our business and growth along with the economy and with the ultimate aim of getting the company to be listed. Our present and future plans are detailed as follows:

Present Plans
Our main priority now is to restructure our workforce and the management of the company. Next, we need to acquire more advanced machineries to boost our manufacturing abilities. In the process of improvement, we will upgrade the working premises to ensure that our workers are comfortable with the working environment.

Future Plans
In line with our continued effort to expand the company, we hope to achieve the following:
  1. To acquire a license Quarry of our own
  2. To have a Tin mining of our own
  3. To acquire a license Sand mining of our own
  4. To engage in full manufacturing and production line operations
  5. To provide consultant services on quarry for the productions and the equipment areas, and on automotive and mechanical servicing areas.
  6. To explore the feasibilities of franchising our products
  7. To form a new team to undertake more contracts from PBA, PDC, TNB, Penang Port and Building contracts
  8. To set up the vendor system to help the small and medium scale industries and it would help to boost our company image.

We have also outlined some staff programs and community programs to upgrade our staff. They are as follows: -
Education Program Proposed Staff Program Education Program : We will propose a few different programs for different staff as it depends on the individual abilities as well as their interest.

The basic program that we would implement is on the job training. Next is to send our staff to any institution to further their studies so that they could upgrade their individual skill. In doing so, they will be better exposed and hence a change in attitude to perform better in their work. Then we would send those staff that have a keen interest in Information Technology for training so that they could upgrade and fully computerize our company system.

Finally, we would create job promotion opportunities among our staff so that each and everyone would have the chance for an internal promotion. By doing this, all staff would then realize the importance of the job training and self-enhancement.
   
Social Program We would organize weekly or monthly social gathering for all the company personnel so that they can get to know each other and hence foster a better working relationship.

Also, we would encourage individual department to organize their own program for their own employees and if possible fit in other department as well.

All the expenses would be paid by the company as an encouragement . By supporting all the above mentioned activities, we are allowing all employees to get to know each other better and to reduce if not completely eliminate any conflicts that might arise during work.
   
Health Program We would provide extra health care for our employees beside the government SOSCO. We would purchase additional health insurance for them and we would try to include dental benefit too as staying healthy is the key to an effective and efficient workforce.
   
Spiritual & Moral Development Programs
We would allocate time for different religious group to have their own prayers as well as program. If at any one time the management receive any suggestion or complaints from any spiritual or moral groups, the management would study and consult over the matter before providing a solution.
   
   
Proposed Community Programs
Education Program We would allocate some funds to certain education center as well as certain education programs as we just could not simply donate. If we have extra funds, we might consider setting up higher institute of learning for both the juniors and seniors. This include children kindergarten, primary schools, colleges and universities. By doing this, we are not only helping the community, we are also helping our own employees to lighten their children education cost.

Also, by setting up these institutions, we are helping the government to reduce the enrollment problems and help to avoid the outflow of our Malaysian Currency.
   
Social Program Again, we would allocate a portion of the funds for some social activities so as to fulfill our social responsibility. We would encourage our employees to join some of the activities that are being organized by some of the social groups.

We will also try to arrange some friendly match with our business associates, customers, government agencies, etc so as to keep up with the relationship.
   
Health Program Same as before, we would allocate some funds to some health organization and possibly consider setting up a health clinic in our region if there is none.

If cost allow, we would even consider setting up private medical college.
   
Spiritual & Moral Development Program
Finally, we would set a portion of the funds for all the religious groups and upgrade all the religious vicinity in our region.
   
   
Implementation
With all the above mentioned plans, we have to start to plan out how we could achieve the ultimate goal in the shortest time possible.

After due consideration, our board have came to a conclusion of “NO PAIN NO GAIN” decision.

That is we are willing to forgo the conventional way of doing business and adapt to the Modern business tactics as well as to heed our government advice -“MERGER”.

Our Proposed Options are as follows : -
  1. To sell all of our business
  2. To sell up to 60% of our business
  3. To merge with any genuine business company/investor
  4. To sell our business individually, i.e: Mechanical Engineering sector or Civil Engineering Sector.

Conclusion
In conclusion, we hope we could find a business partner or investor that will be able to accept any one of our proposal as mentioned for a reasonable premium as the bottom line for us is not to make a fast money.

Our ultimate goal and aspirations is to get Hup Soon Mechanical Works Sdn. Bhd. to be one of the major vendor provider in the Northern Region and finally to be able to list in the Kuala Lumpur Stock Exchange.

Finally, once our company has achieved the ultimate goal, we will then expand on our staff and community service /program as mentioned earlier so as to help them to be a responsible citizen.