Major Shareholder:

• CCID ¡V 69.414% interest

Company Subsidiaries:

• CCID Data (95.0%): Provision of information data management services

The principal business of the Group is the provision of consulting services for the information industry in China. During the Track Record Period, the Group's major source of revenue was derived from its business line of market research. The Directors believe that the quality and experience of the research and production manpower of the Group plays the most crucial part in its business as a service provider. To particularise, nearly 70% of the Group's total manpower belongs to its ¡§Research, development and production¡¨ division. The Group's data available in 35 data banks, which were injected by Electronic Information Centre into CCID Data, provides solid basic data supply for its business development of market research and management consultancy services provided to enterprises engaged in the information industry.

None of the two aforesaid news agencies is related to the Group. As at the Latest Practicable Date, the Group has successfully launched such products as (China IT Market Annual Report), (China IT Market Quarterly Report), (China IT Market Monthly Report) and a series of China's IT market reference products. In addition, the Group has also developed for domestic and overseas customers various China related IT market research products. Based on the Group's developed products, scope of services, target customers and future development emphasis, the business model of the Group comprises three major areas, namely, market research, data information management and management consultancy.

Management consultancy is being actively developed by the Group as a value-added stream of business to its core businesses. According to MII, demand for consultancy services in digitalization, especially software based total solutions by domestic enterprises from all industries is expected to undergo rapid growth. Such market segment provides room for substantial development. Management consultancy service involves digitalization for enterprises, incorporating BPR, ERP, CRM, SCM and so forth.

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

• Well-fledged brand name
• Self-sufficient R&D capabilities and data sources
• Advantage in obtaining data and information through established channels
• Support from CCID
• Propaganda and promulgation channels

• Lack of long term contracts with customers other than CCID Group
• Reliance on CCID Group
• Risks in respect of the Property Purchase Agreement
• Possibility of lagging behind the latest market development
• Uncertain timing for demand of cash to settle social insurance liability

The Group will endeavor to study and develop new products and services so as to catch up with market trends, continue to enhance the quality of existing products and services, with view to accelerating the development of new products and services by employing advanced technology in data management, equipment and experienced professionals. At present, the Group is expanding into development of new products and services for future developments. In market consultancy operation, various monitoring reports, analysis reports and market researches on new topics and areas of interests are expected to be launched soon. In management consultancy operation, the Group will build up different knowledge data banks for various management consultancy systems in the areas of ERP, CRM, SCM, e-Commerce, Government and science park industrial planning.

In view of the absence of proprietary simulated platforms and demonstration centres, the Group intends to set up different simulated platforms and demonstration centres for three purposes, namely, give demonstration to clients so as to facilitate business development, to train professional consultants of the Group, and to provide a platform for the simulation, testing and fine-tuning of the Group's management consultancy solutions.

Currently, the Group has appointed one exclusive agent in each of Korea, Japan and Taiwan. The Directors expect that by 30th June, 2004, the Group's business in other jurisdictions will mainly be conducted through its overseas agency network, which is expected to extend to Hong Kong, US, Europe and Singapore. The Group also intends to expand its domestic sales networks by way of setting up branches in various strategic locations in PRC, with emphasis placed on regions and cities not yet covered by the existing sales networks, such as Chengdu, Wuhan and Jinan. It is expected that by the end of 2004, the total number of full-time sales staff to be employed by the Group will be increased to around 50.

The Group will upgrade its reputation and image within its domestic and international clientele through organizing strategic marketing activities (e.g. seminars) and media promotion, product market development and brand name propaganda. At the same time, by actively developing overseas agency business, the Group can gradually build up its brand name in overseas markets.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$35.1 million (based on the offer price HK$0.25 per share). The Group at present intends to apply the net proceeds as follows: