Major Shareholder:

• Ever Wealth Management - 27.724% interests (Assume no exercise of Over-allotment)
• FIL - 32.472% interests (Assume no exercise of Over-allotment)

The principal business activity of the Group is the distribution and sale of heavy commercial vehicles in the Greater China region. The Group has the exclusive distribution rights for Scania trucks, tractors, coach chassis and buses as well as spare parts and accessories for such vehicles in such region. Scania, which was the second largest truck make in terms of market share in the heavy truck market in Western Europe in 2000, is the Group's largest supplier.

The Group also provides after sales services, including repair and maintenance services and the sale of spare parts and accessories, for Scania vehicles. At present, the Group has eight self-operated service centres, two spare parts centres, eleven authorised service centres and a joint venture workshop in Taiwan, Hong Kong and the PRC.

Through U-Drive Company Limited which was incorporated in March 2000, the Group introduced a new concept of U-Drive in Hong Kong, which is intended to provide U-Drive members with various motor-related services and benefits, including discounts on fuel and tires replacement, telematics and vehicle repair and maintenance services as well as insurance agency, financing and vehicle and fleet management control services.

The Directors believe that one of the key factors to the continued growth of the Group is the Group's ability to provide quality after sales services through a network of service centres easily accessible by its customers and a computer information system in spare parts inventory management, thereby minimising the amount of time required to carry out repair and maintenance services on the vehicles of its customers and hence reducing the overall performance costs of such vehicles.

¡@

The Group will continue to aim to provide quality after sales services to its customers and, consistent with this aim, the Group acquired a new property in Yuen Long, HK, with a gross floor area of about 97,399 sq.ft., in May 2000. It is anticipated that the Group will open a new service centre at such premises in July 2001.

The Group plans to expand the chain services of U-Drive and to launch U-Drive in Taiwan and the PRC in late 2001 and after the PRC's accession to the WTO, respectively. The Directors believe that the chain services of U-Drive will complement the business currently carried on by the Group and enable the Group to diversify its scope of business and enlarge its base of recurrent earnings.

The Group is committed to improving its data processing and information system. The Group plans to invest in new computer hardware and software as well as to expand the Company's computer information system to cover the Group's authorised service centres and to develop a computer information system in the PRC similar to that in Taiwan and Hong Kong with a view to further enhancing its efficiency in spare parts inventory management.

The Group currently has two websites and it plans to provide more information on its websites about the Group itself and about the range of products which it distributes. The Group also plans to expand the range of services available in these websites, including the sale of spare parts and accessories for Scania vehicles on-line.

The net proceeds from the Share, after deduction of expenses payable by the Company, are estimated to amount to approximately HK$87illion The Group at present intends to apply the net proceeds as follows: