The Company is a close-ended investment company incorporate with limited liability as an exempted company in the Cayman Islands on 26 April 2002 and is an investment company which will engage principally in the investment in listed and unlisted companies in Greater China. to a lesser extent, the Company may from time to time also make other investment outside Greater China should the Directors believe that such investments may provide attractive returns.

The Company intends to focus primarily on investments in listed and unlisted companies in Greater China. the Company has no intention to invest in derivative products with open positions (except for hedging purposes). The Board believes that with the executive

Directors extensive experience in investment in Greater China, the Company is well positioned to capture investment opportunities and through its investments in listed and unlisted securities, to earn returns in the form of capital appreciation, dividend income and interest income. The company has not commenced operation of business since its incorporation, nor has it identified any investment opportunity as at the Latest Practicable Date.

The principal investment objective of the Company is to achieve earnings in the form of medium to long term (i.e. generally more than one year) capital appreciation, and dividend an interest income from an investment portfolio comprising equity, equity-related and debt securities issued by enterprises established in or having significant operations or businesses in Greater China.

Not more than 20% of the assets of the Company may from time to time be invested outside Greater China should the Directors believe that such investments may provide attractive returns. The Company also intends to invest in unlisted companies with the potential to seek listings on the stock Exchange or on other internationally recognized stock exchange in the short to medium term.

The company's investments will normally be made in enterprises which are established in their respective fields and in which the Board believes that there are prospects of earnings growth and/or capital appreciation. In particular, the Group will seek to identify businesses or entities with a potential or record of profit growth, strong management, high levels of technical expertise and research and development capabilities as well as management commitment to the long-term growth of such companies.

The Company may invest in companies or other entities which are considered by the Board and/or the investment Manager as being special or in recovery situations on a case by case basis, e.g. companies under restructuring or liquidation, which may have extensive growth in shorter period and provide attractive returns.

Where possible, the Board and the Investment Manager will seek to identify investment where there is a certain degree of synergy will other investee companies and where co-operation between such companies would be of mutual benefit to each other

• The income from the investments and the Net Asset Value may go down as well as up, among other things, the then prevailing market conditions.
• There can be no assurance that Shares will experience trading or pricing patterns similar to those of securities with a correlation to PRC investments traded on the Stock Exchange or any other securities exchange.
• There is no guarantee that the Company's investment objective will be achieved based on the investments selected.
• The Group is a newly established investment company with no historical track record and the profit or value of the company relies on the expertise of the Directors.

As at the Latest Practicable Date, the Company has no outstanding mortgages, charges, debentures or other loan capital or bank overdrafts, loans or other similar indebtedness or hire purchase commitments of finance lease commitments or any guarantees of other material contingent liabilities. Since the Company has on outstanding indebtedness, the Directors are of the view that the Company has sufficient liquidity and financial resources to meet its capital expenditure requirements.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$24.5 million (based on the offer price HK$0.5 per shares). The net proceeds from the New Issue will be applied in funding the investments in accordance with the investment objective and investment approach. Any proceeds not invested will be deposited with the Company's bankers.