Major Shareholder:

• Mr. Lau Chun Ming and his wife ¡V 60.0% interest

Company Subsidiaries:

• Sam Woo Bore Pile (100%): Foundation works
• Sam Woo Engineering Equipment (100%): Leasing of machinery and equipment
• Sam Woo Construction & Engineering (100%): Trading of used machinery and equipment
• Sam Woo Construction (100%): Foundation of works
• Sam Woo Civil (100%): Civil engineering works

The Group is an established and one of the leading contractors in the Hong Kong foundation industry. The Group is principally engaged in foundation works related business, specializing in piling, of which land bored piling works constitute a substantial part and the rest comprising marine bored piling works and other piling works such as rock socketed H-piling works. The Group is also engaged in trading of used foundation works related machinery and equipment and leasing of foundation works related machinery and equipment. During the Track Record Period, revenue from foundation works represented approximately 94.2 per cent., approximately 98.8 per cent., approximately 94.1 per cent and approximately 92.5 per cent of the Group's total turnover, respectively.

The Group undertakes foundation works related projects in both the public and private sectors. Among the projects undertaken by the Group, public sector projects are mostly infrastructure and building related while private sector projects are mostly building related.

Among the members of the Group, Sam Woo Engineering Equipment leases foundation works related machinery and equipment, of which approximately 60.0 per cent. can be applied to both land and marine foundation construction, while the remaining approximately 40.0 per cent. can only be applied to land foundation construction. Its customers are mainly Sam Woo Bore Pile and other foundation companies in Hong Kong. For Sam Woo Engineering Equipment, the machinery and equipment are its fixed assets.

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

• The Directors believe that the comprehensive and full range of machinery and equipment owned by and therefore readily available to the Group and the Directors continuing efforts in up grading the range, not only enhances the Group's ability to tender, but also ensures proper execution, of large and technically complicated foundation works projects.
• With the depth of the experience of the management team and its enthusiasm for the industry, the Group has achieved a remarkable success and reputation in the industry.

• Liquidity and net current liabilities;
• Impact of political and economies policy change on the Group's business;
• The Group's profitability may be adversely affected by the reduction of sizeable infrastructure related public works projects;
• Reliance on key personnel;
• Reliance on subcontractors;
• Litigation risk for delay contracts;

The Group will continue to play an active role in seeking opportunities in foundation works for infrastructure projects in Hong Kong by continuing to acquire more into the field of civil engineering works for infrastructure projects launched by the Government as a strategic means of expanding its market share in foundation works as well as in civil construction. These civil engineering projects mainly consist of road and transportation infrastructure works of which foundation works form a considerable part.

Many infrastructure projects are expected to be launched in the PRC during the next decade. PRC's WTO accession, the Beijing 2008 Olympics, the western region development strategy and the housing reform in the PRC are expected to augur well for contractors in Hong Kong to participate. In view of these opportunities, the Directors plan to expand the Group's business not only in Hong Kong, but also in the PRC market in the future.

The countries of the Pacific Rim have emerged in recent decades as important participants, e.g. Vietnam and Cambodia, in the global markets for design and constructions. Rapid economic growth has spurred booming markets for new construction. The region is now marked by record-breaking mega projects, e.g. new roads, highways and buildings. In view of this increasingly attractive opportunity, the Group intends to expand its market to other parts of Asia besides Hong Kong and the PRC. Although the Group intends to establish business relationships with local government departments and private developers, no document or concrete plan has been signed or formulated by the Group so far. The Directors intend to requirements to enter the foundation industry in Asia (other than Hong Kong and the PRC) as and when appropriate.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$35.0 million (based on the offer price HK$0.67 per share). The Group at present intends to apply the net proceeds as follows: