Major Shareholder:

• Mr. Anthony Chan ¡V 17.12% interest
• Mr. Loh Nee Peng ¡V 10.79% interest
• Comfort Group ¡V 15.42% interest

Company Subsidiaries:

• GAL HK (100%): Trading of automobile spare parts and accessories and acting as liaison agent of GAPL for distribution of passenger vehicles in HK
• China Auto Asia (Singapore) (100%): Managing agent of car rental operation
• CAN Anhua (Tianjin) (PRC) (100%): Distribution of passenger vehicles and principal licenses of Hertz car rental operation in PRC
• Xiamen BMW (PRC) (100%): After sales services for BMW passenger vehicles.

The Group is principally engaged in the (i) distribution of passenger vehicles, in particular, BMW, Honda and Mercedes-Benz passenger vehicles to resellers in Hong Kong and the PRC whose sales targets are the end customers in the PRC, (ii) provision of marketing and technical assistance to North Anhua, a reseller and business alliance of the Group in the PRC, (iii) provision of after-sales service such as motor vehicles repair and maintenance services in the PRC and (iv) trading of auto parts and accessories in Hong Kong and the PRC. Headquartered in Singapore, the Group currently has presences in Hong Kong, Tianjin Municipality and the Xiamen Special Economic Zone of the PRC.

To complement the Group's motor vehicles distribution business, the Group has recently diversified into car rental business in the PRC. The Directors believe that car rental operators will enhance their services by employing imported luxury passenger vehicles supplied by the Group. The Group has entered into a license agreement with Hertz as its principal licensee for using the Hertz System and has procured three sub-licensees for using the Hertz System.

The Group principally distributes imported BMW, Honda and other passenger vehicles, including Land Rover, Toyota, and Mercedes-Benz to resellers in Hong Kong and the PRC whose sale targets are the end customers in the PRC.

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

• being one of the 5 authorized distributors of BMW AG during the Track Record Period and one of the 20 importers of Honda passenger vehicles in the PRC where, according to the National Statistics Bureau¡]°ê®a²Î­p§½¡^of the PRC, demand for midmarket and luxury passenger vehicles has increased by approximately 21.7% from 1999 to 2000;

• its long-term established relationship with BMW AG and Honda Corporation and ability to secure reliable supply of those passenger vehicles for the PRC market when demand for such passenger vehicles exceeds supply;
• its extensive distribution network through alliance with North Anhua, including 50 distribution agents and 72 distribution offices of North Anhua;

• being the first entrant and the only company in the PRC to form alliance with Hertz, the largest car rental company in the world, to implement the Hertz System car rental business in the PRC through designated sub-licensees who are licensed car rental operators in the PRC;

• its established reputation and recognition for its reliable supply of passenger vehicles and the quality of its after-sale service;

• its strong advisory board comprising industry experts of the PRC, which facilitates the Group's business development and enhances the Group's ability in identifying and securing business opportunities in the PRC; and

• its experienced, stable, foresighted, prudent and balanced management team to enable the Group to enjoy a high business growth rate and continue to improve the Group's profitability.

• Exposure to North Anhua's obligations;
• Manufacturing plant set up by BMW and other suppliers in the PRC.
• Reliance on BMW importer Contract;
• Financial guarantees provided to third parties;
• Personal guarantees provided by Directors and their respective associates

It is the mission of the Group to become a leading authorized distributor of luxury passenger vehicles and a leading promoter of the Hertz System car rental services in the PRC. To achieve this mission, the Group will focus on maintaining and developing the passenger vehicles distribution agent network by ensuring reliable supply of passenger vehicles as well as providing quality value-added pre-sales and after-sales services, and adding on that, promoting the car rental service of its sub-licensees operated under the Hertz System through CNA Anhua (Tianjin). The Group intends to focus on the following areas:

• expanding its agent distribution network for BMW, Honda and Land Rover passenger vehicles;
• attaining additional distributorships from foreign motor vehicle manufacturers whose motor vehicles are in line with the Group's targeted market segments;
• expanding geographical coverage and market share in respect of its distribution of BMW, Honda and Land Rover passenger vehicles by establishing showrooms, support centres and service centres throughout the PRC;
• providing management consultancy, financial assistance and technical services to the car rental operators appointed by the Group; and
• establishing joint venture(s) to operate service centre and provide after-sale services, the forming of joint venture(s) will strictly comply with the regulatory requirement of the PRC law.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$27.0 million (based on the offer price HK$0.5 per share). The Group at present intends to apply the net proceeds as follows: