Major Shareholder:

• Genesis Century ¡V 39.548% interest

Company Subsidiaries:

• Fujian Shine Science (PRC) (100%): Development of software, resale of hardware and provision of supporting services in the PRC.
• Shanghai Shine Science (PRC) (90%): Development of software, resale of hardware and provision of supporting services in the PRC..
• Xinwangluo (PRC) (67.0%): Resale of hardware and network installation in the PRC
• Shanghai Xingyishi (60.0%): Provision of computer and management constancy services

The Group is one of the major suppliers of securities clearing software in the PRC. Its major business is to provide clearing platforms, application software and technical support services for participants of Primary Clearing System and Secondary Clearing System in the PRC.

As at the Latest Practicable Date, all of the participants of the Primary Clearing System, namely CSDCC Shanghai Branch, CSDCC Shenzhen Branch, the Clearing Banks and securities companies, are using products jointly developed by the Group and CSDCC Shanghai Branch or CSDCC Shenzhen Branch. As at the Latest Practicable Date, the Group's secondary securities clearing products have been distributed to over 90 securities companies and approximately 2,000 of their branches on a nation-wide basis, which represent over 70% of the total number of branches of domestic securities companies in the PRC.

Leveraging its solid customer base and experienced technical expertise, the Group is also developing a series of corporate solutions (including Securities CRM/IRM, Collaborative Work Platforms and Office Automation, Centralized Securities Processing Platforms, Business and Management Platforms for Fund Institutions, Securities Investment Management System, as well as, Business Support Platforms) for the PRC domestic securities industry. The Group has also expanded its product line and clientele strategically to cover corporate solutions for PRC listed issuers in China.

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

• The Company is a forerunner in the field of primary clearing software in the PRC. In 1999, the Group launched the client sub-system of PROP and CSST for CSDCC Shanghai Branch and CSDCC Shenzhen Branch respectively.
• With the successful implementation of PROP and CSST for CSDCC Shanghai Branch and CSDCC Shenzhen Branch respectively, electronic primary clearing of domestic securities transactions has been achieved on a nation-wide basis. Accordingly, all the participants of the
• Extensive experience in financial and securities industries and in-depth understanding of businesses of the management and development teams3
• Since its establishment, the Group has positioned its business on the provision of solutions for the securities industry in the PRC. The Group's defined and focused business strategies enable it to develop new products which meet changing market needs and to capture quickly its market.
• With the Group's emphasis on customer satisfaction and commitment to quality products, the Group maintains good business relationships with CSDCC Shanghai Branch and CSDCC Shenzhen Branch.

• The Group's customers confined to specific industries
• Continued market acceptance of the Group's products is not guaranteed
• Reliance on key personnel
• Credit risk
• Seasonal fluctuation of the Group's sales
• Potential product liability
• The Group may be liable for intellectual property infringement claims

The Group aims to become a major provider of solutions and supporting services for the finance and securities industries in the PRC. For the period from the Latest Practicable Date to 31 December 2005, the Group will be dedicated to developing corporate solutions principally in four major areas, namely securities clearing, integrated investment management and business support, securities CRM/ IRM solution and Centralized Securities Processing Platform for the PRC domestic securities and financial sectors.

The Group plans to develop other new corporate solutions to meet the diversified needs of the PRC securities industry. In particular, the Group presently intends to launch a diversified spectrum of strategic products, including integrated investment management and business support solutions, securities CRM/IRM solutions, and Centralized Securities Processing Platform within the next three years. Generally speaking, integrated investment management and business support solutions, securities CRM/IRM solutions, and Centralized Securities Processing Platform are some of the major back-office platforms for PRC domestic securities industry.

The Group intends to launch new IRM products to the PRC securities industry in 2003. The Directors believe that there is a lack of interactive communication channels between the listed companies and their shareholders in the PRC. IRM will provide a web-based communication platform between PRC listed companies and their shareholders. In cooperation with the CSDCC Shanghai Branch, the Group developed and promoted the PROP (ListCo Version), a pilot IRM product, to listed issuers of the Shanghai Stock Exchange in December 2002. The Group will expand its IRM product-line in the future.

The Group intends to enhance continuously its position in the market by increasing its marketing and promotional activities for its products in the PRC. Accordingly, the Group will, through its five existing regional sales forces (located in Fuzhou, Beijing, Shanghai, Guangzhou and Shenzhen) in the PRC, organize and participate in exhibitions, forums, product marketing and corporate identity promotional activities.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$26.5 million (based on the offer price HK$0.3 per share). The Group at present intends to apply the net proceeds as follows: