Major Shareholder:

• Ng Man Chan (Chairman) ¡V 52.8%
• Li Kuo Lim ¡V 15.5%

Company Subsidiaries:

• New Spring Group Company Limited (HK) (100%): Manufacturing and trading of gift and toy boxes and other paper products in HK and the PRC
• Sun Hip Fung Printing Products Company Limited (HK) (100%): Trading of paper products in HK
• Today Advertising Products Company Limited (HK) (100%): Trading of paper promotional materials in HK
• Today Graphic Company Limited (HK) (100%): Trading of packaging products in HK
• Anson Printing Group Limited (HK) (30%): Provision of printing and colour separation services in HK
• Lik Sun Sze Paper Products (Shenzhen) Company Limited (PRC) (100%): Production and sale of paper products in the PRC

The Group is principally engaged in the manufacture and sale of packaging products and paper gift items and the printing of paper promotional materials in accordance with customers' design and specifications.

The Group has over 300 customers including distributors, manufacturers of consumer products and advertising agencies. Most of the Group's products are sold to the distributors or manufacturers based in Hong Kong.

The history of the Group dates back to 1986 when Mr. Ng, the founder and chairman of the Group, established the Partnership with three other independent partners. The principal business of the Partnership was offset printing producing mainly posters, flyers and paper banners. The manufacturing activities of the Partnership were then carried out in leased factory premises in Fook Hing Factory Building, Chai Wan, Hong Kong.

Apart form being a production base for Hong Kong manufacturers, the PRC is seen as a potential market for Hong Kong as the country's packaging technology, design and workmanship are of much lower quality, packaging market in the PRC is expanding rapidly as consumers are becoming more demanding and sophisticated.

In particular, food packaging in the PRC may offer good potential. As in other developing countries, poor preservation techniques and inefficient distribution systems have caused high rate of food decay. Appropriate packaging can help alleviating the problem. The strong export performance of the PRC in 2000 will be also contributed to a rising demand for packaging materials.

Industry analysts expect the demand for packaging materials in the US will be supported. Also, with good marketing and attention to customer needs, box demand for packaging may rise in a faster pace. It is estimated that the US packaging market will grow by averages of about 3.5% in the next five years.

• Company's well-established reputation in producing high-quality paper products in the industry.
• Established and diversified customer base of over 300 customers including distributors, manufacturers of consumer products and advertising agencies.
• Commitment to the use of advanced printing machinery and equipment enabling the Group to achieve product excellence, operation efficiency and rapid response to changes in product demand.
• Experienced and stable management team led by Mr. Ng, the founder of the Group who has over 30 years of experience in the printing industry.
• The in-house design team which satisfy the specific requirements of customers.
• Company's reputation for reliable and on-time delivery of goods at competitive prices.

• As there is no long-term agreement between the Group and its major customers, there is no assurance that these customers will continue to engage the Group in future.
• No long-term procurement contract has been entered into between the Group and any of the major suppliers.
• Reliance on the PRC market. Around 90% of the Group's products were sold to the PRC for the year ended 31^st December 2000.
• There is no assurance that the Group's financial position will not be adversely affected by any deterioration in the credit-worthiness of its customers.
• Paper price is subject to fluctuations, any substantial increase in paper prices may adversely affect the profitability of the Group if the Group is unable to pass on all or part of such increase to its customers.

In view of the lower production cost in the PRC than that in the US, the Directors foresee that there is a trend for US customers to source paper product directly from the PRC supplier. Given the comprehensive range of paper products offered by the Group, the business in the long run. The Directors further believe that direct sales to the US can offer a relatively higher gross profit margin to the Group. In order to develop its customer base in the US, the Group plans to strengthen its marketing efforts in developing the US market by setting up representative offices and participating in international trade fairs in the future.

The Directors are optimistic about the future economic development of the PRC. The Directors anticipate that the PRC economy will prosper, especially after the accession of the PRC into the WTO in near future. Under such circumstances, the Directors are of the view that demand of consumer packaging products in the PRC will increase. Given its manufacturing presence in the PRC, the Directors are of the view that the Group is well positioned to capture such increase in demand in the future.

In view of the commencement of production utilizing the new six-color offset press plus double coating in June 2001, the Directors aim to diversify its products scope to include products that require advance printing technology, such as gold-foiled and silver-foiled cards, security printing products and three-dimension cards.

In order to meet anticipated high volume of orders and consolidate its position in the industry, the Group plans to expand its manufacturing facilities in the PRC. The Directors believe that with an increase of volume of orders, the Group's manufacturing operators will enjoy increasing economies of scale. The Group intends to upgrade its machinery and equipment and to employ more qualified professionals in the PRC and Hong Kong.

The net proceeds from the Share Offer, after deduction of expenses payable by the Company, are estimated to amount to approximately HK$34 million. The Group at present intends to apply the net proceeds as follows: