Major Shareholder:

• Ip Ki Cheung - 30% interests
• Cheung Shui Kwai - 18% interests
• Chan Siu Chung - 12% interests

Company Subsidiaries:

• Polonius (100%): property holding
• Kenfair Publications (100%): advertising services and publication of trade show and exhibition booklets
• Kenfair International (100%): organising trade shows and exhibitions in Hong Kong
• Kenfair (Overseas) (100%): organising trade fairs overseas

The Group is principally engaged in the organisation of trade fairs, trade shows and related activities to promote and facilitate trades between international buyers and manufacturers, particularly Asian manufacturers. Every year, the Group organises the Asian Gifts Premium & Household Products Show, the first of which was held in October 1999, and the Hong Kong International Toys & Gifts Show, the first of which was held in October 1992. Since 1993, these two trade shows have been held concurrently at HKCEC in Hong Kong in October every year and are proposed to be held annually.

The Group also organises the Asia Expo, which is proposed to be held annually in London, the UK. The first Asia Expo was held in February 2001 and the second in February 2002. In addition, the Group sells advertising spaces in the fair catalogues of the Hong Kong Internationsl Toys & Gifts Show and the Asian Gifts Premium & Household Products Show which are published by the Group. Participation fees are charged to exhibitors based on the size and the design of the exhibition booths they occupy. The Group provides customised booth design services to exhibitors and has its own customer service department to handle general enquiries from exhibitors and buyers.

The Group also provides travel and accommodation arrangement services to exhibitors and buyers. The Group invites most visitors attending the shows with free admission to the shows. Entrance fees are charged to those visitors who attend the shows without an invitation.

Besides the October Shows and the Asia Expo, the Group has also organised other trade shows including the Hong Kong Autumn Fair held in October 1995, the Hong Kong Spring Fair in April 1996 and the Asian Consumer Electronics Show held in April 1998.

The October Shows in Hong Kong provide a large, consistent and stable income for the Group. The success of the first two Asia Expos indicates that the Group's business model can be applied to trade shows of a different nature and outside Hong Kong. The Group will seek to build on these successes to develop new shows both locally and overseas. In addition, the Directors believe that China's accession to the WTO will present a great opportunity for the development of the trade show and exhibition industry in the PRC.

The Directors believe that the success of the Group is attributable principally to the following strengths of the Group:

• Proven business model
• Industrial expertise
• Large database of exhibitors and buyers
• Focused sales and marketing efforts

RISK FACTORS

• Reliance on the October Shows
• Seasonality of the business
• Reliance on major venue provider and suppliers of exhibition-related facilities and services
• Reliance on databases of exhibitors and buyers in the toys and premium gifts industries
• Reliance on a major customer
• Intensive preparatory works and advance cash payment required for organising exhibitions
• Competition
• Low entry barrier

The Directors have identified the following major areas which they believe would offer potential development opportunities to the Group:

• Expansion of existing trade shows
• Development of new shows
• Development of the PRC market
• Business development ' the Group intends to explore opportunities in the booth fabrication business.

The net proceeds from the share offer, after deducting the related expenses, are estimated to amount to approximately HK$42 million. The Group at present intends to apply the net proceeds as follows: