Major Shareholder:

• OPSFGL ¡V 25.0% interest

The Company was incorporated in the Cayman Islands under the Companies Law as an exempted company with limited liability on 26 July 2002. The Company is an investment company, which will be principally engaged in investments in listed and unlisted companies in the Greater China. The Company has not commenced operation or business since its incorporation, nor has it identified any investment opportunity as at the Latest Practicable Date.

The Company is an investment company incorporated in the Cayman Islands with the objective of achieving earnings in the form of medium- to long-term (i.e. one to five years) capital appreciation mainly through investments in listed and unlisted companies in the Greater China.

1. A major portion of the Company's assets will be invested in equity and debt related securities in listed and unlisted companies in the Greater China, or such other types of investments in accordance with the investment objectives and policies and restrictions adopted by the Company from time to time and the requirements of the Memorandum, the Articles, the Listing Rules and the Investment Management Agreement.

2. The Company will seek to invest primarily in small- to medium-sized companies with high-growth potential.

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

4. The Company's investments are intended to be held for medium- to long-term (i.e. one to five years) capital appreciation. Nevertheless, the Directors will from time to time realise investments where they believe the realisation would be in the best interests of the Company or where the terms on which such realisation can be achieved are believed by the Directors to be particularly favourable to the Company.

• Risks associated with the Company's investments
• Illiquidity of investments in the PRC
• No prior market for the Shares
• Negotiated issue price
• No business track record
• Risks associated with the fees payable to the Investment Manager and the Custodian
• Potential conflicts of interest of the Investment Manager
• Lack of majority control over investee companies
• No comparable market values of the shares of the investee companies

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 of the Share Offer after deduction of fees, commissions and other expenses to be borne by the Company are estimated to be approximately HK$34 million (without taking into account the exercise of Over-allotment Option). It is presently intended that the net proceeds of the Share Offer together with the net tangible assets of the Company as at the Latest Practicable Date will be applied in investments according to the investment policies and objectives of the Company adopted by the Company from time to time and the requirements of the Memorandum, the Articles, the Listing Rules and the Investment Management Agreement. Any proceeds not deployed will be placed on bank deposits in any currency, bonds or treasury securities issued by the government of the United States or the government of Hong Kong, or their respective agencies or securities and other instruments denominated in any currency issued by various governments or international development agencies.