We are a complete outdoor advertising space and service provider in Hong Kong, focusing on advertisements for minibuses, hospitals, clinics and health and beauty retail stores. In FY2015, FY2016 and the first quarter of 2017, we generated 67.3%, 73.9% and 71.5% revenue from minibus advertisements respectively. According to the Insight Investment Advisory Report, in terms of revenue, we were the largest minibus advertising company in Hong Kong in 2015, with a market share of about 34.3%. With around 740 minibuses (accounting for about 17% of the number of minibuses in Hong Kong according to the Insight Investment Consultation Report), we had exclusive advertising space in Hong Kong in 2015, and we also ranked first in terms of the number of minibuses. We are the only company in Hong Kong that provides advertising space for public hospitals. Combining our exclusive advertising space in public and private hospitals, minibuses with fixed routes to major hospitals, major private healthcare service provider clinics, and over 170 retail stores in Hong Kong's leading health and beauty retail chains, we operate a unique healthcare advertising platform. In fiscal year 2015, fiscal year 2016 and the first quarter of 2017, advertising revenue from hospitals and clinics accounted for 19.4%, 13.8% and 16.5% of our revenue, respectively, while advertising revenue from health and beauty retail stores accounted for 8.6%, 6.3% and 3.9% of our revenue, respectively. Our main business is to provide outdoor advertising space and services to clients (including direct advertisers and advertising agencies acting for such advertisers) to promote their brands, products or services. We provide customers with convenient services, including design and production, advertising logistics, installation and disassembly services. We believe that with our quality service policy, we can provide better management and coordination in different areas of advertising projects. Our goal is to provide customers with comprehensive outdoor media services, so that they can promote various brand images and expand and strengthen relationships with customers. We have been awarded advertising space by our franchisors, which are owners or operators of Hong Kong minibuses and taxis, hospitals, clinics and leading health and beauty retail chains. Most of these spaces are granted to us on an exclusive and long-term basis. As of June 30, 2016, we have been awarded advertising space for 752 minibuses, 18 hospitals, 23 medical clinics, 192 health and beauty retail stores and 36 taxis. Depending on customer requirements, we can also purchase advertising space from advertising space owners on a non-exclusive basis. In FY2016, revenue generated from the non-exclusive advertising space for minibuses and taxis was HK$14.9 million and HK$0.6 million respectively, accounting for 26.7% and 1.1% of our revenue in FY2016. Under the leadership of Chairman, Executive Director and CEO Ms. Zhou, with more than 12 years of operating history, we have accumulated rich experience in the advertising industry and established established customer and strategic relationships with advertising space owners. Our outdoor advertising platform for minibuses, taxis, hospitals, medical clinics and health and beauty retail stores has a wide audience, covering different regions and consumer segments in Hong Kong. We believe that our minibus advertising service allows advertisers to reach a large general audience as well as local communities on specific minibus routes, thereby increasing the effectiveness of their campaigns and exposure to target audiences. Minibus body advertisements play a role like “mobile banners” that appear repeatedly on the street. Furthermore, we believe that our minibus advertising services to major hospitals can work in synergy with our hospital advertising services because these services can reach audiences of patients, hospital visitors, and healthcare professionals, and can be used strategically by our advertisers to reach such target consumers. We have a large and diverse customer base, including over [600] customers in FY2016. Our clients include major local and international companies in the pharmaceutical, healthcare, beauty, catering, and home design and furniture industries. Most of our customers are loyal customers, and we have had business relationships with most of our major customers for over 5 years. Revenue from repeat customers (those who have contracted with us more than once during the track record period) accounted for approximately 53% of our revenue in fiscal year 2016. According to the Insight Investment Consultation Report, the market size of the Hong Kong outdoor advertising market is expected to maintain steady growth. We believe that our leading market position and mature business model place us in an advantageous position to seize additional market share and the overall growth trend of the minibus and outdoor advertising market.
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