Major Shareholder:

• Mr. Yau Chung Hong ¡V 6.0% interest

The Company is an investment company incorporated with limited liability as an exempted company in the Cayman Islands on 13th November 2002. The Company has not been involved in any business transactions since its incorporation other than having entered into a lease agreement of an office unit.

At least 70% of the Company's assets will be invested in equity securities, convertible notes, preference shares, options, warrants, futures contracts and debt securities, mutual funds and unit trusts issued or managed by listed and unlisted companies in Hong Kong and the PRC. Not more than 30% of the investments of the Company may be made outside the PRC and Hong Kong where the Directors consider that such investments would provide attractive returns, the Company any also invest in such other types of investments in accordance with the investment objectives and policies adopted by the company from time to time and the requirements of the Memorandum, the Articles, the Listing Rules and the Investment Management Agreement.

The Investment Limited exercisable by the Board for any single investment is the lower of 20% of the Net Asset Vale or $10,000.00 or such other amount as may be resolved by the Board from time to time.

The Directors are responsible for the approval of all investment decisions and the formulation of the company's investment objectives and policies and in particular, all investment and divestment strategies and guidelines.

The investment objective of the Company is to achieve earnings in the form of short to medium term (i.e. less than five years) capital appreciation as well as income from interest and dividends mainly through investment in a diversified portfolio of listed and unlisted companies in Hong Kong and the PRC.

The Company may from time to time also make other investments outside the PRC and HK should the Directors believe that such investment may provide attractive returns. The Company also intends to invest in unlisted companies with the potential to seek listing on the Stock Exchange or on other internationally recognized stock exchange in the short to medium term.

• The Company's income and its Net Asset Value may be adversely affected by external factors beyond the control of the Company. As a result, the Company's income and its Net Asset Value may go down as well as up, subject to, among other things, the prevailing market conditions.
• There is no assurance that such capital gains can be realized or that the requisite approvals can be obtained. The Company's investments in the PRC may therefore be illiquid.
• Unlike companies with core businesses, products or services, the Company may invest in companies engaging in a wide range of business. As a result, comparable securities may not be available for references as to the fair market value of the Shares.
• The Company has no business track record. The profit or value of the company is reliant on the expertise of the Directors and the respective directors of the Interim Manager and the Investment Manager and the performance of the investee companies.

As the latest Practicable Date, the Company has no outstanding mortgages, charges, debentures or other loan capital or bank overdrafts, loans or other similar indebtedness or hire purchase commitments of finance lease commitments or any guarantees of other material contingent liabilities. Since the Company has on outstanding indebtedness, the Directors are of the view that the Company has sufficient liquidity and financial resources to meet its capital expenditure requirements.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$44.15 million (based on the offer price HK$1.0 per share). The Group at present intends to apply the net proceeds as follows: