Major Shareholder:

• Mr. Wei Jian Jun ¡V 34.48% interest
• Nandayuan Management Centre ¡V 32.98% interest

Company Subsidiaries:

• Xincheng Company (99.0%): Manufacture of automotive parts and components
• GW Accessories Company (99.0%): Manufacture of automotive parts and components
• GW Sales Network Company (90.0%): Marketing and sales of automobiles
• GW Bus Sales Company (90.0%): Marketing and sales of automobiles
• GW Huabei Company (51.0%): Manufacture of automotive parts and components
• GW Axies Company (75.0%): Manufacture of automotive parts and components
• Changfu Pressings Company (75.0%): Manufacture of automotive parts and components
• Beijing Great Company (75.0%): Manufacture of automotive parts and components
• GW Internal Combustion Engine Company (51.0%): Manufacture of automotive parts and components

The Group is a privately controlled PRC enterprise. According to the PRC association of Automobile Industry, the Group has been ranked first in terms of sales and production volume in the PRC pick up truck market for four consecutive years since 1999, two years after the commercial launch of the Group's first series of pick-up trucks. Leveraging on its expertise in the manufacture and marketing of pick-up trucks and the utilization of the common principal manufacture and processing facilities, the Group commercially launched its SUVs in June 2002. According to the State Information Center, the Group was ranked third in terms of sales volume in the PRC SUV market in 2002, six months after the commercial launch of the Group's SUVs. For the six months ended 30^th June, the sales of pick up trucks and SUVs accounted for about 42.7% and 49.2% of the Group's total turnover respectively.

As at 30th June, 2003, the basic retail price (VAT inclusive) of the Group's principal pick up trucks ranged from RMB58,800 to RM69,800 and the basic retail price (VAT and consumption tax inclusive) of the Group's SUVs ranged from RMB83,800 to RMB105,800. The Group is headquarter in Baoding, Hebei Province, the PRC. As at 30th June 2003, the Group had an annual aggregate production capacity of about 70,000 pick up trucks and SUVs. As an integrated automobile manufacturer, the Group also engages in the R&D and manufacture of the principal automotive parts and components (such as engines, front and rear axles, and air-conditioning equipment) for use in the assembly of the Group's pick up trucks and SUVs.

The domestic sales of the group's automobiles are mainly conducted through a comprehensive sales network, which spreads across about 250 cities in 22 provinces and five autonomous regions in the PRC. As at 30th June, 2003, the Group's domestic sales network comprised over 380 dealers and agents. The Group has also established an extensive after sales service network comprising over 340 after sales service centres.

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

• Flexible and integrated production process achieving lower production cost;
• Extensive marketing network;
• Stringent quality control system;
• Extensive range of products;
• Strategic market focus;
• Well recognized brand name and leader in the pick-up truck and SUV markets; experienced management;

• Risk related to new Production facilities;
• Sourcing from third party suppliers in the future;
• New product cycle;
• Reliance on R&D;
• Potential acquisition of land and establishment of joint Ventures;
• Uncertainty of Middle Eastern markets;
• Product liability exposure;
• The PRC government grants
• Preferential tax treatment;

In the third quarter of 2003, the Group commenced the construction of the new production facilities in Baoding, Hebei Province, the PRC, where the Group is headquartered. The construction of such facilities is currently expected to be completed around October 2004. The company plans to enhance its annual aggregate production capacity of pick-up trucks and SUVs gradually from about 70,000 units to about 150,000 units by 2005. The New production faculties include production lines for stamping, welding, painting and assembling, as well as a testing centre for new products and a repairs and maintenance centre for stamping dies. The new production lines will be configured to give the Group the flexibility to manufacture a collection of new pick-up trucks and SUVs with higher quality.

To complement with the anticipated growth in the production capacity, the Group plans to upgrade and expand the existing production capacity for engines from about 80,000 units to about 150,000 units. It is currently expected that this project would require a total capital expenditure of about RMB198.0 million (equivalent to about HK$186.8 million) which will be financed by the net proceeds from the share offer.

In addition, the Group intends to invest about RMB88.5 million (equivalent ot about HK$83.5 million) in upgrading the existing production facilities for parts and components, which include front and rear axles frames, and upholstery components and other accessories. The Group intends to complete the installation and testing of the upgraded facilities in the second half of 2004, with trial production o the upgraded facilities scheduled to be commenced in the same period.

PROFIT FORECAST FOR THE YEAR ENDING 31 DEC, 2003

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$1,265.6 million (based on the offer price HK$11.725 per share). The Group at present intends to apply the net proceeds as follows: