Major Shareholder:

• Mr. Chen Ping - 11.20% interest
• Zhejiang Innovation - 10.50% interest
• Beijing Guoheng - 10.50% interest
• Mr. Zhejiang Oware - 10.50% interest

Company Subsidiaries:

• Chengdu Land E&I Technology (55%): Sales and distribution of telecommunication solution business.
• Hangzhou Trust Comm Services (55%): Handling the services and strategic planning aspects of the wireless value-added solutions.
• Shanghai Langang Comm tech (51%): To strengthen and expand the wireless communications solutions business.
• Hangzhou Tour Electronic Commerce (24%): Provision of information system for tourist related business.
  

The Group is a provider of telecommunication solution in the PRC, serving telecommunications operators, ISPs and ICPs in 19 provinces and 3 directly administered municipalities. Established on 13th November 1996 in the PRC, the Group is one of the first providers of wireless value-added systems in the PRC with major customers including China Unicom, China Mobile and China Telecom.

The Group's telecommunications solutions are categorized into two major business lines, namely the data communication solutions and the telecom operation solutions. The data communication solutions are designed to enable telecommunications operators to offer a wide range of telecommunication services over the wireless network and the Internet, which ultimately serve the wireless and Internet end-users. These solutions include the wireless communication system, the data switch platform, and the wireless value-added systems and the large capacity e-mail system.

The telecom operation solutions are designed to enhance the telecommunications operators' operational efficiency in internal data processing and inter-departmental communication. These solutions include the broadband Internet CRM systems and the telecom office automation system. As part of the telecommunications solutions business, the Group also sells networking hardware products to telecommunications operators through third party sub-distributors.

The Group is mainly managed by a group of Zhejiang University professors and graduates, most of who have been conducting extensive research on wireless communication systems since 1992. As at the latest practicable date, the Group employed a total of 187 employees, including 155 full time employees and 32 part time employees, of which 49 is R&D staff.

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

• Strong working relationship with Zhejiang University in resep3ct of the joint establishment of the research Center to conduct R&D on telecommunications solutions, access and apply advanced telecommunications technologies and access on abundant supply of technical expertise from Zhejiang University;
• Experienced management team in the development of telecommunication solutions and understands the telecommunications industry in the PRC and its technological development trends;
• Extensive market coverage in the PRC where the Group has signed service agreements with major telecommunications operators, such as China Unicom, China Mobile and China Telecom, in providing telecommunications solutions in 19 provinces and 3directly administered municipalities in the PRC;
• Strategic alliances with reputable multinational and national companies in the software and telecommunications industries to enhance the Group's distribution channels and provide the Group with the latest technological developments; and
• Quality after-sales support in ensuring customer satisfaction and client retention.

• Reliance on support from Zhejiang University;
• Reliance on key personnel;
• Research and development risks;
• Intellectual property rights risks
• Risk related to the Trademark, patent and copyright infringement

In an attempt to become the leading telecommunications solutions providers in the PRC, the Group will continue to upgrade its solutions and products to keep abreast of the growing demand for advanced telecommunications technologies, create strategic alliances and conduct related investments, maintain its relationship with Zhejiang University and expand its sales and marketing network.

The Group focuses on the R&D of advanced software and system integration for telecommunications operators in the PRC. The Group keeps abreast of domestic market trends and work closely with its customers to identify the market needs and define solution specifications early in the development process. This approach results in a thorough understanding of the end-user's requirements prior to the commencement of the design process.

The Group will continue to create strategic alliances with domestic and multinational companies to enhance its brand awareness, proactive joint sales and cross-promotional activities and expand distribution capabilities. The Group will also consider investing in or acquiring telecommunications-related companies that may further enhance the overall value of the Group.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$80.0 million (based on the offer price HK$0.95 per share). The Group at present intends to apply the net proceeds as follows: