Major Shareholder:

• Mr. Chai Sing Hong ¡V 62.04% interest

Company Subsidiaries:

• Byford IGS Limited (100%): Sales of Byford Products through IGS
• Byford (Malaysia) (100%): Sale and distribution of men's innerwear socks, and apparels in Malaysia
• Byford (Singapore) (100%): Sale and distribution of men's innerwear, socks and apparels in Singapore
• DBS (M) (100%): Trademarks owner to receive royalty income from licenses

The Group is principally engaged in the sourcing, sale and distribution of men's innerwear and socks under the Byford brandname. The Group acquired the worldwide Byford trademarks for a consideration of HK$18.8 million in May 2001. Prior to such acquisition, the Group was a licensee of the Byford and other international brandnames and was principally engaged in the distribution and sale of Byford products in Malaysia and Singapore. As a result of the acquisition of the Byford trademark, the Group became the worldwide licensor of the Byford trademark in 2001 and commenced its business of brand ownership management.

As at the Latest Practicable Date, the Group had 11 licensees covering 30 countries including Malaysia, Singapore, Hong Kong, the UK and the United States. The Group's Byford licences are granted on a territorial basis and the Byford licensees distribute Byford products to wholesalers, department stores and other retail outlets. A majority of the Group's licensees have entered into the Group's standard licensing agreements whereby the Group can ensure that the brand image of Byford is maintained, as required by the Group from time to time. For instance, materials utilised, product designs, packaging designs and certain marketing strategies of the Byford products will fall within the Group's control under the standard licensing agreements, enabling the Group to maintain consistency in quality and brand image of the Byford products distributed by its licensees.

The Group's purchases are of finished men's innerwear, socks and apparels. Over the Track Record Period, the Group had business relationships with more than 30 suppliers in countries such as Korea, Malaysia, PRC, Hong Kong and Thailand. Pursuant to the terms of the Group's standard licensing agreements, the licensees may make purchases from their own suppliers as opposed to from the Group's suppliers, provided that such licensees' suppliers have met certain requirements and standards determined by the Group. There are 4 licensees purchasing Byford products through the IGS. To maintain the brand image of Byford, quality control exercises may be conducted at the factories of the Group's suppliers. For licensees making purchases from their own suppliers, the Group may request such licensees to send samples of their Byford products to the Group for its inspection prior to the sale of these products in the relevant markets.

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

• The Byford brand has a heritage of producing men's innerwear and socks for over 80 years following the establishment of the brand in England in 1919. The Directors are of the view that the Byford brand is a widely recognised men's innerwear and socks brand.

• The Group is equipped with a management information system and inventory control system which enables information such as location of sales, products category, size and style to be recorded in detail for the Group's analysis and assessment.

• The Group currently has 11 licensees worldwide that distribute Byford products in 30 countries, including Malaysia, Singapore, Hong Kong, the United States and the UK. The international network of licensees enables the Group to strengthen the global recognition of the Byford brandname with minimum capital investment and low inventory risk.

• Potential liability for the waived amounts due to related companies
• Reliance on key executives and personnel
• Reliance on major distributors, retailers and licensees
• No direct distribution channel
• Reliance on major suppliers
• Possible inconsistency in the quality and brand name of the Byford products distributed by its licensees

The operational and implementation strategy to be employed to further strengthen the Group's brand building efforts include a combination of advertising campaigns in territories in Singapore, Malaysia and Hong Kong, providing interviews to promote awareness of the Byford brand and attending and participating in trade fairs. To this end, the Group has retained the services of a public relations agency to assist the Group.

The Group's operational and implementation strategy involves conducting market intelligence in emerging markets on a semi-annual basis by independent agents. Once satisfactory market research has been conducted, the Group will decide internally whether the targeted territories and/or the prospective licensees meet the Group's overall objectives. In the event of a positive decision being made, the Group will engage legal and financial professionals to assess the suitability of the potential licensees in distributing Byford products.

The Group will continually consider expanding its distribution base and market coverage to ensure that the Group is represented in all markets that it considers to be significant. Through semi-annual market intelligence exercises, the Group will consider the commercial attractiveness and feasibility of establishing new distribution markets by setting up a new operational base in the respective territory on its own or by way of joint ventures with preferred local parties.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$18.37 million (based on the offer price HK$0.6 per share). The Group at present intends to apply the net proceeds as follows: