Major Shareholder:

• Mr. Tsui Tai Hoi, Raymond - 28.07% interest
• Mr. Hoang Tan Van, George - 24.03% interest
• Mr. Kong Look Sen - 14.90% interest

Company Subsidiaries:

• GEHK (100%): Manufacturing and trading of environmental protection products.
• Grandy Eviron-Tech Co.,Ltd (100%): Trading of energy saving products.

The Group is principally engaged in the production, import, sales and marketing of environmental products and the rendering of ancillary services to combat problems caused by water and air pollution and energy wastage.

By deploying enzymes, minerals and microorganisms in different combinations, the Group manufactures a broad range of environmental products for combating water and/or air pollution problems. With a view to securing the supply of enzymes and the market position of the Group in the environmental protection industry, the Group entered into the Sole Agency Agreement with Garnett, the supplier of the Enzyme-based Materials to the Group, for the exclusive right to distribute and sell, and the right to use, the Enzyme-based Materials worldwide except in North America, South Korea and Japan for a term of 30 years expiring on 31st October, 2028.

In addition, the Group provides IAQ management services, which are the IAQ investigations designed to identify IAQ problems and solving the IAQ problems. The Group has established a diversified customer base covering various sectors, including public, commercial, industrial and household sectors. Some of the prominent clients of the Group include Honking Land (Property Management) Limited, Guardian Property Management Limited, Nixon Cleaning Company Limited, Swan Hygiene Services Limited, FPD Savills Property Management Limited, Hong Kong Aircraft Engineering Company Limited (HAECO), California Red Limited, Optimum Engineering Limited and ISS Servisystem (HK) Limited.

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

• The established good and active ling term relationships with its customers allowing the Group to attain direct market feedback regarding its products and service quality;
• The ability of the Group's management team to source and secure environmental materials/products including the Enzyme-based Materials and Light Eco systems;
• The diversified function of the enzyme-based Materials which enable the Group to develop its business in Hong Kong rapidly;
• The ability of the Group to offer a range of different products and ancillary services to its customers for combating problems in water and air pollution and energy wastage;
• The established close working relationship of the Group with its suppliers and advisers, which enhances the product quality in a cost-effective and timely manner.

• Reliance on major customer (Garnett);
• Reliance on the proceeds form the share offer;
• Reliance on key executives and personnel;
• Risk related to the future products and services;
• The Group's business objectives may not be materialized

To cope with the growing demand for environmental technologies in the PRC, the Directors propose to seek appropriate investment opportunities to expand the Group 's water and air quality improvement and energy saving businesses in the PRC. The Group also intends to extend its distribution network to the PRC by appointing appropriate agents to carry out the sales and marketing of its products and services for combating aqueous and air-borne pollutants and energy wastage problems in the PRC. The Directors intend to set up a representative office in the PRC in 2003 to promote sales and organize seminars and workshops for potential clients.

The Group plans to undergo an expansion in Asia to broaden its customer base and minimize the economic risk on its business operations due to the concentration of its operation in a particular country. The Group plans to penetrate into all major markets in the Asian region, including Malaysia and Singapore in the year ending 31st March, 2003, Vietnam in the year ending 31st March, 2004 and Thailand in the year ending 31st March,2005. The Group plans to ally itself with agents in the relevant countries who have the ability and capability to complement the Group 's businesses.

The Directors believe that there will be a growing demand for environmental related products given the increasing awareness of the importance of health care and environmental protection among the general public in Hong Kong and the Government. As such, the Directors intend to enhance the Group 's existing products produced from the Enzyme-based Materials and to source additional products and to improve its services for environmental protection.

The Directors are of the opinion that building up the corporate brand name of the Group 's products will enhance the reputation and sales of the Group. The Directors intend to use part of the net proceeds from the issue of the New Shares under the Share Offer to finance the advertising and promotion of the Group 's products.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$36.8 million (based on the offer price HK$0.28 per share). The Group at present intends to apply the net proceeds as follows: