Major Shareholder:

• Mr. IP, Chun Heng, Wilson and his wife ¡V 70.0% interest

Company Subsidiaries:

• Sheen Honour (HK) (100%): Wholesale of beauty and health care products
• Bonjiour Medical (100%): Provision of beauty and health care related constancy services
• Win come Hong (100%): Trading of cosmetics, skin-care, perfume and health-care products.
• Bonjour Macao (100%): Procurement of cosmetic products from overseas for the Group

The Group is engaged principally in the retail and wholesale of brand name beauty and health care products and the operation of beauty and health salons in Hong Kong. The products sold by the Group can be broadly divided into four main categories, namely (1) skin-care products; (2)fragrances and cosmetics, (3)health-care products; and (4)hair care and personal-car products and accessories. As at the Latest Practicable Date, the Group operated 17 retail outlets and 4 beauty and health salons in prime business locations in Hong Kong under the name of ¡§Bonjour¡¨ except for one retail outlet which was operated under the name of ¡§Cheuk Kee¡¨ and was focused on offering lower priced products. An additional beauty and health salon is expected to be opened in Mongkok by the end of the July 2003.

Leveraging on their experience and expertise in the retail sale of cosmetics, skin care and hair care products, Mr. IP and Mrs. IP, the founders of the Group, established the first retail outlet in Jordan in 1991 under the name of Bonjour Cosmetic & Beauty Centre, which was subsequently relocated to Fa Yuen Street, MongKok and then operated by the Group in 1998.

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

• A wide range of beauty and health-care products which the Group offers to its customers at discounted price;
• The Group's ability to offer comprehensive skin-care, spa, slimming and shaping services to its customers by the operation of beauty and health salons;
• The convenient locations of the Group's retail outlets and beauty and health salons; and
• The Group's skilled and experienced management and sales force.

• Reliance on retail sales in Hong Kong
• Loss of the beauty and health salon business
• Deferred revenue arising from unredeemed beauty treatment packages without expiry dates
• Vulnerability of the Group to material adverse changes in economic conditions of Hong Kong
• Renewal of lease of retail outlets and beauty and health salons

The Directors believe that with the recent policy of the Hong Kong government to relax the restrictions on PRC visitors to Hong Kong, the number of PRC visitors to Hong Kong will increase which leads to a stronger demand for beauty and health-care products in ligh of the significant price gap between beauty products solid in the PRC and Hong Kong resulting from the PRC's tariff on such products and the great variety of such products available in Hong Kong reason of its free market system.

The Group intends to continue its expansion in Hong Kong by opening five retail outlets in the next few years in highly populated residential districts including Shatin and Kwun Tong. Furthermore, the Group intends a establish a ¡§mega¡¨ retail outlet which can provide its customers with an extensive range of beauty and health-care products. The Group will also strategically ally with some travel agencies with an aim to turn Bonjour's ¡§Mega¡¨ or other retail outlets as one of the tourist spots in Hong Kong. The Directors believe that with Hong Kong's tax-free environment on beauty and health-care products, the Group will be able to capture a large share in the spending of PRC and foreign visitors.

The Directors believes that as women today are more conscious about their health and individual image, coupled with the massive productions in various media or slimming, shaping and skin-care services, the Directors believe that an increasing number of women in Hong Kong are willing to spend money on spa, slimming and shaping treatments, which will result in more room for expansion of the Group's salon business. In addition, the Directors consider that the salon business has a synergetic effect to the selling business of the Group as some salon business has a synergetic effect to the selling business of the Group as some salon customers would like to buy the beauty products which they have used in their treatments at the beauty and health salons, the Group intends to open three additional salons in Tsimshatsui and Central in the next few years.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$38 million (based on the offer price HK$0.90 per share). The Group at present intends to apply the net proceeds as follows: