Major Shareholder:

• Mr. Chung Yuk Sing & his wife ¡V 75.0% interest

Company Subsidiaries:

• Eagle Nice Development (100%): Manufacture and trading of sportswear and garments
• Far East (HK) (100%): Manufacture and trading of sportswear and garments
• Nittsukou (100%): Trading of sportswear and garments
• Microgold (100%): Provision of market information, materials development on production technology information services
• Eagle Nice Shantou (PRC): Manufacture and trading of sportswear and garments
• Far East China (100%): Manufacture and trading of sportswear and garments
• Goldfish (100%): Provision of market information services
• Good Wah (100%): Provision of materials development and production technology information services.

The Group is engaged principally in the design and manufacture of sportswear for man, women and children on an OEM basis. The sportswear supplied by the Group can broadly be divided into the following categories, sports pants, jackets, tracksuits, sweaters and T-shirts.

The Group's products sold under OEM basis are generally manufactured according to the specification prescribed by the customers. The Group manufactures products under international brandnames such as NIKE.

For each of the three years ended 31st March, 2003, sales of sportswear accounted for approximately 94.0%, 96.9% and 97.2% of the Group's turnover respectively. The remaining products comprise casual wear, kids wear and fashion wear.

The Group's production facilities are located in Shantou, the PRC. As at the Latest Practicable Date, the total gross floor area of the Shantou production facilities and office was approximately 36,454.19 aq.m (approximately 392,392.91sq.ft). As at 30^th June 2003, the total number of employees of the Group was 3783 workers. The Group's headquarter is based in Hong Kong and is responsible for the management, sal3es and marketing, administration and finance and purchasing and warehousing function of the Group.

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

• Its long established relationship with its customer. The Group has had relationships with some of its top five customers for over five years. The Directors attribute the long established relationships with its customers to the quality of its products and the ability to meet customers instructions in a timely order;
• Its commitment to maintain and improve the quality of it products. The Group adopts a stringent quality control procedure throughout its production processes which ash resulted in a low sales return rate. In addition, the Group's quality control has been recognized by the Group's customers;
• Its relationships with extensive base of suppliers. The Group has had relationships with some of tis top five suppliers for over the five years. The Directors attribute the good relationships with its supplier to the stable order that the Group places with its suppliers, close involvement in the purchase process and well established payment record;
• Its ability to make timely delivery of products at a competitive price. The Group's production facilities are based in the PRC where costs of human resources and land are relatively cheaper than those in Hong Kong. In addition, management team and skilled staff enable the Group to make timely delivery at a competitive price; and
• The extensive experience and knowledge of its management team in the manufacturing of garment in particular, sportswear, on an OEM basis. Mr. Chung and certain members of the Group's senior management have over ten years experience in the industries, in particular, the production of sportswear on an OEM basis.

• Tax liabilities of certain members of the Group;
• Past overdue capital contributions of Eagle Nice Shantou and Far East China;
• Reliance on major customers;
• Reliance on the Japanese market;
• Nature of OEM business
• Reliance on key management;
• Limited insurance coverage;

In order to expand its production capacity, the Group intends to acquire additional plants and buildings in Shantou, the PRC where the Group's current production facilities are situated.

The total estimated cost for the acquisition of additional factory buildings is approximately HK$10 million, which will be funded from the proceeds of the New Issue. Currently, the Group intends to acquire an existing factory building rather than buildings a new one as the Directors believe this may save time and cost. The new factory building may either be a stand alone building or a multi storey building.

The Group intends to expand its marketing force and to explore sales opportunities in its existing markets as well as in potential markets by recruiting additional experienced marketing personnel. It is expected that members of the marketing team will travel regularly to the customers' offices overseas for marketing and promotional and public relations activities.

In order to improve its competitiveness as well as to achieve better quality contorl, the Group intends to extend the level of vertical integration through the expansion of its embroidery facilities.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$22.0 million (based on the offer price HK$1.00 per share). The Group at present intends to apply the net proceeds as follows: