Major Shareholder:

• Mr. Wong Kwong Kwok ¡V 43.04% interest
• Mr. Chan Chi Yin ¡V 22.3% interest

Company Subsidiaries:

• Marine Power (100%): Logistics services
• June Transportation (HK) (100%): Transportation services

The Group is principally engaged in coordinating various logistics services for its customers. The logistics services provided by the Group include sea freight forwarding, air freight forwarding, and providing other related logistics services such as customs clearance and declaration, purchasing on behalf of customers of insurance policies, repackaging, and storage. The services provided for each assignment may consist of a combination of the services described above.

The Group's customers are mainly companies established or operating in the PRC. During the Track Record Period, two affiliated companies of MNCs accounted for approximately 91.2% and 94.7% of the Group's turnover. The Group handled both inbound freight and outbound freight for these customers. The inbound freight handled by the Group is from Hong Kong to the PRC and the outbound freight is from the PRC via Hong Kong or the PRC to various countries in Asia, Australia, Canada, the Middle East, South America, the Netherlands, and the United States.

The Group's head office is based in Hong Kong. In addition, the Group currently has also appointed overseas marketing agents to promote the Group's services in the PRC, Taiwan, North America, Germany, and the United Kingdom as at the Latest Practicable Date. As at the Latest Practicable Date, the Group had a team of 16 employees in Hong Kong.

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

• Its well established and long term relationships with its affiliated companies of MNC customers, as the Group has had relationships with its affiliated companies of MNC customers for over four years
• Its relationship with carriers and other agents, which enable the Group to provide a comprehensive range of logistics services
• Its dedicated management team which has in-depth knowledge of the logistics industry in Hong Kong
• Its strong management knowhow and information technology infrastructure

• Reliance on Guangzhou Cosco in relation to the remittance of freight income of Marine Power's customers in the PRC;
• Non renewal of the NVOCC Qualification certificate of Marine Power;
• Failure by Marine Power to register as a non vessel operating common carrier within the time limit prescribed by the International Maritime Transportation Regulations;
• Reliance on Guanghou MP for the support of administrative services in the PRC;
• Reliance on key executives and personnel;

In order to expand the geographical coverage of the Group's operational network, the Directors intend to approach potential agents in markets such as the United States, countries in Asia, and countries in Europe. The Group intends to set up offices in Taiwan, Singapore, and the PRC before March 31, 2005. The Directors estimate the net proceeds from Placing and proceeds from the Pre-IPO investors will be sufficient to expand the Group's operational network.

The Group intends to expand it operational facilities through the acquisition of its own fleet of trucks and warehouses. The Group intends to acquire three trucks and approximately 2,000 sq. ft. of warehouse. The Directors believe that such expansion will strengthen the Group's competitive position and improve the Group's profit margins. The Directors estimate the net proceeds from Placing and proceeds from the Pre-IPO investors to be sufficient to expand its operational facilities.

The Group will increase its level of advertising and marketing activities to promote the Group's image and services. The Directors believe that such advertising and marketing activities are essential tin order to enhance the customer's awareness of the group's image and services.

The Group intends to acquire an interest in an existing foreign invested enterprise (such as a sino-foreign joint venture enterprise) in the PRC, with a shareholding interest not exceeding 49% and which has the legal capacity and right to carry on business of an international freight forwarding agency enterprise in the PRC. The Directors believe that such an investment will no only strengthen the Group's competitive position, but also expand its current scope of services and improve the Group's quality of service and profit margins.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$12.0 million (based on the offer price HK$0.4 per share). The Group at present intends to apply the net proceeds as follows: