Major Shareholder:

• The Lo's Family Unit Trust ¡V 70.0% interest

Company Subsidiaries:

• Lo's Cleaning Services Ltd (100%): Investment holding and provision of cleaning services in Hong Kong
• Lo's Airport Cleaning Services Ltd (100%): Provision of cleaning services to the Airport

Established in 1978, Lo's Cleaning is currently one of the most well established cleaning companies in Hong Kong and employs approximately 2200 staff. It is currently responsible for the cleaning of more than 80 office buildings, shopping arcades and commercial complexes such as Capitol Centre, Cheung Kong Center, CITIC Tower, The Center, Wing On Centre, Causeway Bay Plaza, Hang Lung Centre, Harbour Centre, Kornhill Plaza, United Centre, Amoy Garden, Heng Fa Chuen, Kornhill Gardens, Laguna City, Park Tower and the Airport.

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

• Being one of the most well established cleaning companies in Hong Kong, employing more than 2000 staff and with over 25 years' experience in the industry.
• Its well known and diversified client base, including owners and occupants of offices buildings, residential complexes, commercial spaces etc.
• Its experienved and committed management team that is dedicated to provide such as external wall cleaning and residential household cleaning; and
• Its solid financial standing with net assets approximately HK$84 million and no bank borrowings upon listing on the Stock Exchange.

• Term cleaning contracts;
• Reliance on contracts from corporate clients, including the Airport;
• Contracts with CPI adjustment clauses;
• Dividends;
• Reliance on subcontractors;
• Competitions and low entry barrier;
• Reliance on key management;
• Claim for damages;
• Potential claim for damages as a result of SARS

The Group is currently one of the most well established cleaning companies in Hong Kong serving various property sectors and utility companies. Apart from aiming to secure cleaning contracts from new property developments, the Group intends to tender for the cleaning services contract of Disney Land in Hong Kong which is expected to open in 2005. Leveraging on its expertise and extensive client base, the Group plans to expand its business and to provide more value-added services to its clients.

The Group targets older residential buildings for providing external wall cleaning and restoration services. This first such cleaning project was secured in May 2002 for 14 residential blocks at Kingswood Villas, tin Shui Wai, New Territories. The Directors believe that there is a significant potential in this area as it has been estimated that over 60% of the residential complexes in Hong Kong are more than 10 year old. To cater for additional businesses in this area, the Group plans to purchase additional hondolas, in addition, the Group will actively seek to secure marble floor cleaning and restoration projects from commercial buildings and shopping arcades.

The Group diversified its business into residential household cleaning in 2001 by securing a contract to provide household cleanings for certain service apartment units of Laguna Verde, a residential development in Hung Hom, Kowloon managed by Cheung Kong Property Development Co Ltd. The Directors believe that this is a relatively untapped market in Hong Kong as more residential buildings are being held for leasing as service apartments.

Cleaning is one of the three major services in property management in Hong Kong. The other two are security and maintenance. The Group has plans to diversify its business to cover all these major services in property management. In this regard, the Group will identify suitable property management companies for acquisition and has earmarked approximately HK$6 million from proceeds of the share offer for this purpose.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$21.2 million (based on the offer price HK$0.56 per share). The Group at present intends to apply the net proceeds as follows: