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[envirovision] 21/10/2010 11:41

I thought there was more or less zero cases of burglary / theft in china since if they are caught they are put behind bars after a sham trial then executed at will and their kidneys and other organs sold to the highest bidder.

[2ngawang] 21/10/2010 10:27

Thx for thread and will do some research on GLOK.

[masurenguy] 21/10/2010 08:58

Global Lock secures AIM float

Global Lock Safety (International) has a unique security proposition in the Chinese market and it is joining AIM tomorrow. The concept of providing security for stores and homes is not unusual in Europe but Global Lock is the only firm in China that can offer alarm units, guard response and anti-theft insurance in one package. It took more than three years for the Chinese regulators to permit the link between Global Lock and China Pacific Insurance Company so it could take some time for a competitor to come along. By that time Global Lock should be well on its way to becoming a national brand.

It is difficult for stores to get insurance without a trusted security firm offering them security services. By offering the full package Global Lock can provide a service attractive to retailers. The security equipment is provided free of charge but the annual fee for the service is paid up front. There was deferred income in the 2009 balance sheet of RMB5.21m (£496,000).

The patents for the technology are in the subsidiary's books at RMB38.1m. The equipment is manufactured by a company owned by most of Global Lock's directors. Pro forma net assets are RMB66.3m (£6.3m) but that includes RMB38.3m (£3.65m) of intangibles.

There are currently more than 6,000 customers with in excess of 1,000 added in the three months to September 2010. Global Lock has 50 branches in China, plus hubs for patrolmen. Most of the customers are in Hunan province and Global Lock also has a presence in 10 other provinces. One branch has around a dozen staff plus additional patrol guards. A branch can cope with up to 1,000 customers so there is plenty of spare capacity. Global Lock has set a target of 500,000 retail customers and 1m residential customers by the end of 2014.

The residential side of the business is not as lucrative as retail but it is a big market. Residential charges are around one-sixth of retail charges although the equipment is cheaper. The first 'super' branch was opened in Nantong in collaboration with the local authority. This can handle 20,000 customers, enabling Global Lock to start to build up its residential business. Other 'super' branches will be opened in conjunction with local authorities.

Global Lock made its first profit in the six months to June 2010. 2009 was really the first full year's trading. It made RMB1.19m (£113,000) on revenues of RMB9.71m (£925,000). The business is highly cash generative because customers pay one year's fee upfront. Contracts worth RMB14.2m (£1.35m) were sold in 2009, which was much more than recognised revenues of RMB8.59m (£818,000). The company reported a loss in 2009 but it did generate cash in the period. Cash revenues were RMB14.8m (£1.4m) in the nine months to September 2010.

There was RMB3.1m (£295,000) in the bank at the end of September 2010. No new money is being raised at the time of the introduction to AIM. A placing at 15p a share, raised RMB20m (£1.88m) earlier this month and that share price values Global Lock at £37.5m. The cash will help Global Lock to open 10 more branches before the end of the year. The company will probably need to raise more cash because it wants to open 100 city branches and 14 'super' branches by the end of 2014.

Nominated adviser and broker Allenby has warrants to subscribe for the equivalent of 1% of the company – the warrants are exercisable at the lowest closing price in the first week of trading and last five years. Allenby receives a fee of £150,000 for the flotation and an annual retainer of £75,000. The total costs of the flotation are £450,000.

[masurenguy] 21/10/2010 08:53

Global Lock Safety Seeks Listing, Up To GBP50 Million Market Capitalization

LONDON -(Dow Jones)- Global Lock Safety International Group Co., a provider of security solutions to the retail and other domestic markets in China, said Tuesday it seeks admission of 250 million ordinary shares of no par value to the Alternative Investment Market of the London Stock Exchange.

MAIN FACTS:
No new capital on Admission.
Anticipated market capitalization on Admission £40m to £50m.
Percentage Of AIM Securities Not In Public Hands At Admission: 61.27%

[masurenguy] 21/10/2010 07:20

The Group's business has been built up using a branch model. Branches are typically established in cities or other densely populated areas with a large number of retail outlets, and are under the day-today control of a branch manager. The branch managers report to and are supervised by the Group's head office. While branches do not have any separate legal identity, each branch is accounted for on a stand-alone basis and is subject to external independent accounting and prepares an independent tax declaration. Branch funding is allocated by the head office and each branch's financial controls and the preparation of the financial management information is undertaken by the branch accountant, under the overall supervision of head office.

The Group made a maiden profit of RMB856K on sales of RMB9,7m in the first half of 2010. Between 1 July 2010 and 30 September 2010 the Group continued to acquire more customer contracts and the Directors estimate that for the three months ended 30 September 2010, the revenue derived by the Group was in excess of RMB 5.3 million recognised on a cash basis. Revenue to 30 September 2010 on a cash basis was RMB 14.8 million and the Group generated pre-tax profits of RMB 1.4 million. Cash balances as at 30 September 2010 were approximately RMB 3.1 million.

The Directors are targeting opening on further 10 branches by 31 December 2010. They also believe that the Group has reached the stage in its development where it will benefit from the Company being admitted to trading on a stock exchange and that this will: (i) enhance the perceived credentials of the Group with existing and potential customers; (ii) allow the Group to access equity capital in the future; (iii) raise the Group's profile; (iv) enhance the Group's standing with potential future partners; and (v) support the development of the Group's brand in China and internationally. The Directors are planning to expand the number of branches and stores operated and serviced by the Group and in order to fund this expansion, the Directors expect that the Company will look to raise funds in the future in order to provide the required working or development capital for such progression.

[masurenguy] 21/10/2010 07:20

Global Lock Safety (International) Global Lock Co., Ltd, (AIM: GLOK) announces that trading in its Ordinary Shares will commence on AIM today. Allenby Capital Limited is the Nominated Adviser and Broker. Global Lock provides a total anti-theft service for the Chinese retail sector. This service comprises three primary elements: a patented GSM alarm system; a 24 hour security service and guard response; and linked anti-theft insurance. The Directors of Global Lock believe that the company is the only provider of this type of comprehensive integrated security service in the Peoples Republic of China.

Security solution

The Group's security solution is made up of three core components. The benefit of this combined security solution is that on leaving their premises the owner simply activates the alarm by mobile phone. Whilst set this alarm is monitored 24 hours a day by a local monitoring station. In the event that the alarm is triggered, response guards are dispatched by the local monitoring station to attend the premises and determine whether or not the alarm activation is genuine. In the event that the alarm activation is genuine then the guards will inform the local police and the owner who will attend the premises. If a theft is determined to have occurred, the third aspect of the Group's security solution enables the owner to recover the cost of the stolen stock or possessions by making an insurance claim. Since 2007, the Group has grown significantly to become, what the Directors believe to be, one of the leading security service providers in the PRC.

The Group has formed relationships with the following organisations:

Jiangsu Nantong Municipal Government. The Directors believe that this relationship is key to raising the Group's profile and the Directors anticipate that the Jiangsu Nantong Municipal Government will assist them in promoting the Group's security solution. On the back of this, the Directors consider that fostering relationships with Government authorities in other provinces will be key to helping to develop and promote the Group's security solution in the future; and

Retail trade associations. The Group's main customer base is retail stores and, accordingly, the Directors believe that the relationship cultivated with retail trade industry associations are important to enable the Group to develop its security solution by allowing it to promote its security solution to retail trade industry associations' members.

In addition, the Group has also built various strategic partnerships with several leading enterprises in the PRC, including Siemens, China Mobile and China Pacific Insurance (one of China's leading insurers) as well as fostering relationships with professional security companies in the PRC so as to enable it to provide a comprehensive security solution.

Market opportunity

As at 30 June 2010 the Group had successfully deployed its service in more than 6,000 stores and 50 branch locations around China. The Directors believe that the size of the potential market in China is significant. The Group is targeting opening a further 100 town and city branches and 14 more super branches by the end of 2014 to service China's largest conurbations. The Directors are targeting to have signed up over 500,000 retail customers and 1m residential customers by the end of 2014. These numbers represent only a fraction of the current retail stores market and total Chinese households. For example, by the end of 2008, China had a population of approximately 1,336.3m of which 47% of the population lived in cities. In addition, by the end of 2009, 250 of the world's 1,000 largest cities were in China. There were also a total of 384.8m households in China for the same period and property sales increased 75.5% to RMB 4.4trillion for 2009 when compared with 2008.