Major Shareholder:

• Hennabun ¡V 29.0% interest

The Company was incorporated in the Cayman Islands as an exempted company with limited liability on 14 August 2001. The Company is an investment companies and will be principally engaged in investments in listed or unlisted enterprises established and/or conducting business in Hong Kong and/or the PRC. The Company has not commenced operation or business since its incorporation.

The investment objective of the Company is to achieve earnings in the form of medium term (i.e. less than 1 year to 5 years) capital appreciation mainly through investment in a diversified portfolio of listed or unlisted enterprises established and/or conducting business in Hong Kong and/or the PRC. The investment objective will remain in force for a minimum period three years from the date of this prospectus, unless varied by the Shareholders by ordinary resolution in a general meeting.

At least 70% of the Company's investments will be equity securities, equity related securities or debt instruments issued by listed or unlisted enterprises established and/or conducting business in the Hong Kong and/or the PRC, or such other types of investments in accordance with the investment objective and the investment policies adopted the Memorandum, the Articles and the Listing Rules. Not more than 30% of the investments of the Company may be made outside Hong Kong and the PRC where the Directors consider that such investments would provide attractive returns. The investment policies will remain in force for a minimum period of three years from the date of this prospectus, unless varied by the Shareholders by ordinary resolution in a general meeting.

• The income from the investments and the Net Asset Value may go down as well as up, among other things, the then prevailing market conditions.
• A provision and/or amortization of goodwill may have to be made by the Company in the calculation of the Net Asset Value prior to the listing and/or disposal of such unlisted investment.
• The Group intends to invest in companies or enterprises established in the PRC, while it is difficult for the Group to realize such investments.
• The Group is a newly established investment company with no historical track record and the profit or value of the company relies on the expertise of the Directors.

As at the Latest Practicable Date, the Company has no outstanding mortgages, charges, debentures or other loan capital or bank overdrafts, loans or other similar indebtedness or hire purchase commitments of finance lease commitments or any guarantees of other material contingent liabilities. Since the Company has on outstanding indebtedness, the Directors are of the view that the Company has sufficient liquidity and financial resources to meet its capital expenditure requirements.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$119.36 million (based on the offer price HK$0.18 per share). The net proceeds from the New Issue will be applied in funding the investments in accordance with the investment objective and investment policies adopted by the Company. Any proceeds not invested for the time being will be placed on deposits in Hong Kong or other currency with financial institutions in Hong Kong Dollars or may be invested in debt securities.