Major Shareholder:

• Multiturn Trading Limited ¡V 35.18% interest
• HyComm Wireless Limited ¡V 12.0% interest

Company Subsidiaries:

• CHK (100%): Leasing of office premise
• CML (100%): Provision of management and maintenance of network services
• CIL (100%): Provision of system design and integration services
• CSL (100%): Provision of e-commerce services

The Group is a software application solutions provider in the property market in the PRC, and is principally engaged in (i) the design of Residential Intranet including the recommendation of network layout, advice no procurement of hardware and evaluation of software application; and (ii) the provision of e-property management software application consulting services, including the design, development, installations, maintenance and upgrade of e-property management software application.

The Residential Intranet designed by the Group is an open platform, which allows household units to link up with each other within the community and in turn form an inter-community network.

The Group's e-property management software application aims to offer tailor-made property and household management solutions to facilitate property developers to automate property management functions and to enable residents, through the Residential Intranet, to access a variety of information and services in relation to e-commerce, e-communication and e-convenience.

During the Track Record Period, the Group's turnover was entirely attributable to the provision of the design of Residential Intranet and e-property management software application design, development and installation services to the PRC property developers. The Directors consider that the quality of the Group's consulting service will be enhanced by the synergistic value of the Group's e-property management software application, and the Group will be able to provide a ¡§one-stop¡¨ service for customers implementing full-fledge Intranet network.

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

• the professional knowledge and extensive experience of the Directors and the Group's senior management in the property management industry and information technology markets;
• precise project planning and implementation; and
• its close working relationship with technological partners, enabling it to gain access to the latest technologies and also keep abreast of market trends.

• Tax liabilities of the Group;
• Dependence on the property market in the PRC;
• Lack of long term contracts;
• The Group does not have a proven track record in deriving income from other sources;
• Changes in licensing laws and regulations in the PRC;

The Group intends to achieve an objective of becoming one of the active e-property management software application providers in the PRC by exploiting the advanced information technology through the implementation of the following strategies:

• Promoting Smart Home concept: the Directors consider that, as intelligent network and related applications are still at a preliminary stage of development, the Group will pursue to disseminate the benefits and advantages of Smart Home concept to both property developers and the public.

• Enlarging the Group's clientele: while maintaining its relationship with its existing clients, the Group will also develop new business opportunities with other property developers to broaden its coverage in other major cities in the PRC.

• Upgrading infrastructure: in order to manage the connectivity of the Residential Intranet, the Group will continuously acquire additional server and computers to upgrade its data operating center in Hong Kong.

• Establishing alliances and partnerships: in order to dedicate itself to enhancing and improving the design of the Residential Intranet as well as the design and development of its e-property management software application, the Group will appoint local partners in the PRC as agents to implement the function of network installation and hardware manufacturing.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$18.2 million (based on the offer price HK$0.28 per share). The Group at present intends to apply the net proceeds as follows: