Major Shareholder:

• TTII ¡V 63.75% interest

Company Subsidiaries:

• Wan Tai (90.0%): Sale of medical and health products using technology in Biomedical Engineering discipline.
• Alpha (75%): Production and sales of diabetic health products using technology in Biomedical Engineering

The Group is principally engaged in the research and development and subsequently commercialization of medical and health products using technology in the Biomedical Engineering discipline in the PRC, which targets the treatment and/or rehabilitation of patients. All product categories of the Group's medical and health products belong to the distinct discipline of the Biomedical Engineering which include medical equipment, pharmaceuticals and diabetic health products. The core technology of the Group's medical and health products based on the Biomedical Engineering discipline. The Group applies its technical know-how on some existing common technological practices to develop the Group's own products.

Wan Tai, a subsidiary of the company, is the group's sales arm and principally engaged in the sale of the Group's medical equipment. In the event the proposed joint ventures are not established of do not operate as intended, the Group would still have the ability and network to sell its medical and health product to the market. The Group will then actively seek other potential business partners.

The Group's diabetic health products have been commercialized. As for the two financial years ended 31st December 2000 and 2001, turnover attributable to the sales of diabetic health products amounted to approximately RMB14.2 million and RMB20.1 million representing approximately 84% and 79% of the Group's turnover respectively. Approximately 26% and 21% of the Group's turnover is attributable to the Group's diabetic health products which do not require approval certificates for health food for the two financial years ended 31st December 2000 and 2001.

The Directors believe that research and development is the foundation of the Group's business development. The Group has accordingly committed a considerable level of resources to the recruitment of suitable professionals and has entered into service agreements with all of the Group's 28 research personnel. The Group's research and development team includes 15 professionals who have an average of 15 years experience in the Biomedical Engineering industry in the PRC.

In order to accomplish the Group's business objectives, the group has formulated the following major business strategies:

• To package and market complete sets single usage medical and health products for specific applications such as urethral packages. The Directors believe that such complete packaged sets can provide convenience to end users and increase the attractiveness of the Group's products establishing the Group as the preferred suppliers.
• To aim at providing medial and health products using technology in the Biomedical Engineering discipline at more reasonable price than the similar foreign products available in the PRC market.
• To maximize its research and development resources and capabilities.
• To sponsor training courses for doctors and other medical practitioners and to provide training sessions on the uses and applications of the Group's medical and health products using technology in the Biomedical Engineering discipline in order to improve the Group's corporate image and increase awareness of the Group's products.
• To assist hospitals in the PRC in the establishment of treatment centres located at local community clinics. Such assistance may include leasing some of the Group's medical and health products whilst the treatment centres will purchase supplementary products from the Group.

• The products of the Group are not scientifically tested
• Reliance on key personnel
• Medical and health products using technology in the Biomedical Engineering discipline that have not been commercialized
• Government regulation of health food products
• Non possession of production permit, registration certificate and approval certificate for health food of certain diabetic health products of the Group

The Group is expanding its production facilities. As at the Latest Practicable Date, the Group has invested approximately RMB2.4 million (equivalent to approximately $2.3 million) for the initial assembly of its existing purification factory plant in its leased premises at 7th Floor, TTII Buildings in TEDA, the PRC, and its intends to invest a further sum of approximately RMB16.3 million for the purchase and installation of advanced production equipment and facilities in that premises for the trial production of surface modified IOLs, dialysis filters, clinical catheters, sodium hyaluronate, etc, during the research and development process of the aforesaid products.

The Group continues to form strategic alliances and participates in medical studies, seminars and exhibitions of academic institutions, research institutes, professional bodies, regulatory authorities of the government and various medical and industrial federations, as at the Latest Practicable Date, the Group has 7 strategic alliances. Details of such strategic alliances are set out in sub-section headed ¡¨Strategic alliance¡¨ under the section headed ¡§Business¡¨ of this prospectus.

In the next years, the Directors will endeavor to penetrate the Biomedical markets in the PRC (including Beijing, Tianjin, Hebei provinces, Jiangsu provinces. Zhejiang provinces, etc) and overseas and establish the Group's presence both nationwide and in the US, Europe and the Southeast Asia. Such as extensive market coverage will provide the group with a more diversified customer base, hence the opportunity ot launch more products to meet the needs of the markets.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$70.3 million (based on the offer price HK$0.98 per share). The Group at present intends to apply the net proceeds as follows: