Major Shareholder:

• Ms. Yu Lai Si ¡V 23.8% interest
• Mr. Tm Chie Sang and Ms. Yu Lai Chu, Eileen - 23.8% interest
• Mr. Yu Kam Shui, Erastus and Ms. Lai Yin Ping - 11.9% interest
• Ms. Lai Yin Ping - 11.9% interest

Company Subsidiary:

• Water Oasis Company Ltd (99%): Sales of skin-care products in Hong Kong
• Water Oasis (China) Holdings Ltd (90.1%): Sales of skin-care products in PRC
• Oasis Spa Company Ltd (100%): Operation of spa centres in HK
• Oasis Advertising Agency Co Ltd (100%): Advertising and promotion
• Oasis Beauty.com Ltd (100%): Online sales of beauty products

The Group is the exclusive distributor of -H2O+ brand skin-care products in Hong Kong, Macau, Taiwan and the PRC. The Group operates 17 retail outlets and 2 spa centres in Hong Kong, 14 retail outlets in Taiwan and 1 retail outlet in Macau through which it sells - H2O+ products and is in the course of preparing to enter the PRC market.

It is also engaged in the operation of spa centres under the brad name "Oasis Spa" in Hong Kong, which provides beauty and massage services, and an internet portal "oasis-beauty.com" which offers a wide variety of beauty and health-care information and online shopping for beauty products to website visitors.

At present, all of the Group-s retail outlets are located in high pedestrian traffic shopping areas and commercial areas such as Causeway Bay, Tsimshatsui, Mongkok and Shatin in Hong Kong, the city centre in Macau and upmarket department stores in various locations in Taiwan. In addition, each of the retail outlets is designed and decorated in accordance with the image and specifications of the Group, which aim to give customers a warm, modern, light and healthy environment to enjoy their selection of ' H2O+ products.

The Directors believe that the principal strengths of the Group lie in the following areas:

• A strong management team with retail expertise;
• The selection of prime retail outlet locations;
• A profitable business generating stable cash flows for expansion;
• A comprehensive range of skin'care and body'care products for which is has exclusive distribution rights in Hong Kong, Taiwan, Macau and the PRC;
• A well'trained and knowledgeable team of sales staff; and
• An effective marketing strategy which has achieved widespread brand awareness.

Operations and results of the Group are subject to a number of risks, which are categorised and summarised as follows:

• Sole reliance on agreements with H2O Plus, L.P
• Sole reliance on ' H2O+ brand and products
• Restriction on sales on non' H2O+ products by the Group
• Reliance on intellectual property rights belonging to third parties
• Reliance on maintaining joint venture relationship in the PRC

The Group intends to continue its expansion in Hong Kong by opening 3 retail outlets in Hong Kong. Since the Group's intends to continue its expansion in Hong Kong by opening 3 retail outlets in Hong Kong. Since the Group's present retail network is concentrated in high pedestrian traffic shopping areas and commercial areas, the Group intends to expand its network of retail outlets in newly developed and densely populated residential districts such as Yuen Long, Sheung Shui and Tai Po. In Taiwan, the Group intends to open an additional of 5 retail outlets in major cities such as Taipei, Taoyuan and Jungli.

In additional, the Group was awarded the sole distributorship rights of -H2O+products in the PRC in June 2001 by -H2O Plus, L.P. -H2O+, with the assistance of the Group, is progressing with the registration procedures of -H2O+ products with the relevant PRC bureaux and the Group is aiming to open 10 retail outlets in the 12 months after listing in major cities in the PRC which include Guangzhou, Shanghai, Shenzhen and Beijing.

The Directors believe there is growing demand for the Group's spa business as an increasing number of women in Hong Kong are willing to spend money on the Group's spa treatments. The Group intends to open one additional spa centre in Kowloon. With the success of developing the Group's spa business in Hong Kong, the Directors are planning to develop an Oasis Spa business in the PRC after listing.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$51.0 million. The Group at present intends to apply the net proceeds as follows: