Major Shareholder:

• Mr. Lee Man Fa ¡V 75.0% interest

Company Subsidiaries:

• Daily Development Company Ltd (100%): Provision of intra-group management services
• Streaks worldwide Ltd (100%): Trading of footwear products
• Vento Group Ltd (100%): Trading of raw materials for manufacture of footwear products and provision of intra-group procurement services
• Huayi (100%): Manufacture and sale of footwear products and provision of intra-group subcontracting services.

The Company is principally engaged in the design, manufacture an sale of wide rang of leisure and athletic footwear. The Group's products are manufactured under its own design and are either sold on an ODM basis, i.e, without designated brand names or labeled with the customers' brand names, or under the Group's own brand name ¡§Nymis¡¨, which has over ten years history in the PRC.

The Group major markets are Europe, the PRC and the US, which accounted for, respectively, about 79.6%, 7.1% and 5.8% of the turnover of the Group for the year ended 30th September 2001. The Group has an active customer base of over 50 customers comprising distributors, wholesaler, retailers, importer and trading agents, The majority of the Group's customers have business relationship with the Group ranging from 2 to 5 years. For the year ended 30th September 2001, the single largest customer of the Group accounted for about 8.5% of the Group's turnover.

The Group operates its own manufacturing facilities in the Jinjiang, Fujian Provinces, the PRC with a total site area of about 7,112 sq.m and a total gross floor area of about 5,473 sq.m. the production capacity of these facilities is approximately 2.2 million pairs of footwear per annum. Currently, Huayi is authorized by the relevant governmental authority in the PRC to sell 30% of its products in the PRC with the balance for export.

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

• The solid experience and expertise of the Group's management team in the footwear industry;
• Its well established business relationships with customer and major suppliers;
• Its focus on responding to customer's needs by offering high quality products that meet consumers' requirements;
• Its commitment and ability to design and develop new products in response to the prevalent market trends;
• The wide range of products and competitive pricing it offers; and
• The effective quality control and assurance procedures and quality of its products.

• Sustainability of profit margin;
• Reliance on key management;
• Reliance on subcontractor;
• Reliance on a limited number of markets;
• Reliance on major suppliers;

The Group's existing production facilities located at Wutan Industrial Area, Chidian Town, Jinjiang, Fuijian Provinces, the PRC are currently operating at approximately 90% of its production capacity. The Group intends to spend about HK48 million to expand the production capacity of its existing production facilities by about 50% by mid-2003 by constructing new factory premises adjacent to its existing production facility and acquiring additional ancillary and equipment for production. The Group currently engages independent subcontractors for its production and trends to engaged more subcontractors of the productions to is proceeds if an when necessary.

The Group plans to strengthen its corporate image and promotion of products bearing is own brand name ¡§Nymis¡¨ by engaging in more promotional and marketing activities to be held in the PRC such as advertising in magazines and participating in trade fairs and exhibitions.

To further penetrate the markets in Europe and the US, the Group plans to expand its sales and marketing operations by recruiting additional sales personnel and appointing overseas representatives and by forming joint ventures with local marketing companies in these markets. The expand sales and marketing team will also enhance the Group's capability to obtain valuable information on customers' requirements and the prevalent market trend.

The Group intends to expand tis range of leisure and athletic footwear to offer more choices to is customers. For this purposes, the Group plans to recruit additional staff for its design and development team and to acquire advance machinery and equipment to enhance its design and development capability.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$25.0 million (based on the offer price HK$0.5 per share). The Group at present intends to apply the net proceeds as follows: