Major Shareholder:

• CCT Telecom Holdings Ltd (0138) ¡V 23.34% interest

Company Subsidiary:

• Tradeeasy Limited (100%): Vehicle for holding Hong Kong office licence
• Tradeeasy (BVI) Limited (100%): Holding of service mark
• Datawin Limited (100%): Provision of integrated marketing solution and ASP services
• End User Technology Ltd (100%): Provision of technical consultancy services
• Tradeeasy Information Technology(Guangzhou) Ltd(100%): Provision of technical consultancy
• Tradeeasy Information Technology(Beijing) Ltd(100%): Provision of technical consultancy

TRADEeasy is a trade enabler based in Hong Kong. TRADEeasy aims to provide on-line and off-line one-stop integrated marketing solution and management automation services to assist SMEs to generate and transform trade leads into transactions in a cost-effective, timely and efficient manner. While there are a range of products and services available in the market servicing the different aspects of the trade process, TRADEeasy provides a proprietary end-to-end package for SMEs to navigate and facilitate the trade prices using a combination of on-line and off-line services and products.

To provide better support to the Group's customer based in the PRC, the PRC Subsidiaries were established in the PRC in June 2000 to provide technical consultancy services.

The PRC Subsidiaries are responsible for the development and production of electronic versions of the marketing materials and product description and provision of related services such as quality control, provision of training and after-sales technical support for the Group's customers based in the PRC. Once the production of marketing materials and product descriptions is finished, these materials are transmitted to Datawin, a wholly owned subsidiary of the Company and posted in tradeeasy.com which is operated by Datawin.

The Directors believe that the Group has the following competitive advantages:

• The ability to provide one-stop, total integrated marketing solutions and management automation services;
• A market niche in the SME market segment;
• An extensive network of offices in 11 major cities in the PRC;
• A strong database network of customers;
• An efficient compartmentalized sales methodology;
• A high customer loyalty and retention rate;
• An emphasis on continuos product upgrades and development; and
• Extensive experience and experience of the Group's management team in providing integrated marketing solutions and management automation services.

• The Group's new business model with unproven track record
• Non-recurring nature of revenue from the Group's business
• The Group's business objective may not materialize
• Reliance on independent service providers as agent for business expansion
• Potential service and product liabilities

The Directors anticipate that the demand for TRADEeasy's services will increase significantly in the Greater China Region as SMEs in the Greater China Region need to improve their efficiency in order to maintain their competitiveness following the PRC's admission to the WTO. TRADEeasy intends to capture this potential demand by establishing branches in Taiwan and by appointing independent service providers as its agent in the PRC and Taiwan.

The Directors believe that there will be a growing demand for automation applications through ASP by SMEs due to the general improvements in the communication infrastructure of the Greater China Region. As such, the Group's research and development team will focus on expanding TRADEeasy's web-based applications, including customer clearing management tools, inventory and accounting software, MRP and SCM.

The Group will continue to advertise and promote its brand name and the products and services of TRADEeasy via different media and by attending or organizing conference and seminars. The Group also plans to increase its presence in other countries throughout Asia including India, Singapore and South Korea.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$20.0 million (based on the offer price HK$0.50 per share). The Group at present intends to apply the net proceeds as follows: