Major Shareholder:

• IDGVC ¡V 18.3% interest
• Mr. Guo Fansheng ¡V 15.7% interest
• Ms Zhang Xiaohua ¡V 13.3% interest
• Wisite ¡V 11.9% interest
• Mr. Li Jianguang ¡V 10.0% interest

Company Subsidiaries:

• Beijing Zhongsou Zaixian Software co., Ltd (80.0%): Engaged in the research and development of search engine related software products of the Group
• Wuhan Huicong Network Information Technology Co., Ltd (100%): Engaged in the provision of business information services, market research, design and corporate strategy consulting services and new technology development.
• HC Advertising (100%): Engaged in the conducting media advertising activities in the PRC
• 27 other subsidiaries (50-95% interest): Engaged in advertising, the provision of business information services, market research, technology and business information consulting services in the PRC

The Group is one of the leading business information services providers in the PRC and was established in 1992. The Directors believe that the Group's data library is one o the largest business information libraries in the PRC and it enable the Group to establish itself as an authoritative business information services provider.

The services and products of the Group can mainly be divided into two categories; (1) the provision of primary business information through various channels of communication for companies to promote and advertise their products and services a potential customer and/or the provision of products to obtain relevant primary business information; and the provision of valued added business information services according to the needs of customers.

Currently, the Group provides primary business primary business information through three main types of communication channels, (1) trade catalogues and yellow page directories, (2) search engine services and (3) television and print periodicals.

Apart from disseminating primary business information provided by its customers, the Group performs valued added processes on business information and then sells this by way of value added business information services and products. The Group currently provides two value added business information services and products; (1) market research and analysis, and (2) trade exhibitions, seminars and public relation services.

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

• Sizable and comprehensive data library to provide strong support and development potential to the Group's businesses;
• outstanding search engine technology;
• The China Search Alliance to boost the awareness of the Group's products and services;
• Distinctive business model for creation of shareholder value;
• Strong bond between the Group and its employees;
• Established brand name in the PRC to create future business opportunities;
• Nationwide business network and contracts and strong customer relationship;
• Experienced management team;

• Outstanding tax liabilities as at 30 June 2003
• Failure of the Group to make timely contributions to the retirement benefit fund, medical benefit fund and the housing benefit fund
• The Group's business relies on the PRC market and may be materially adversely affected by a downturn in the PRC economy or by a change in the relevant PRC laws and regulations
• The Group may be materially adversely affected by PRC laws and regulations governing the advertising industry
• The shareholding structure of the Group's operating subsidiaries which engage in the advertising business may be challenged by the PRC authorities
• The television advertising arrangements entered into by the Group in the past may be treated as breaches of the relevant PRC laws and regulations

The Group's principal business objectives are to further strengthen its position as one of China's leading provider of business information services and to further expand the range and improve the quality of its services to the business community. The Group plans to enrich the content and enhance the data management system of its data library so as to maintain its competitive edge in the market.

The Directors see further room to increase the Group's market share in the provision of business information services and products in each industry sector in which its currently participates. In addition, the Group will continue to seek to introduce innovative business information services and products that will complement and enhance its existing products and services.

The Group intends to continue providing its trade catalogues, yellow pages directories and research reports online, and improving the online functionality and capability of these products, including further customizing its online product offerings. The Group will also strive to strengthen its technological capability and the related supporting software to offer additional business information services and products online.

The Group intends to devote significant resources to expand its search engine services by upgrading the Group's proprietary search engine software technology, introducing new and innovative products on services online and expanding the scale and scope of the China Search Alliance.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$74.0 million (based on the offer price HK$1.01 per share). The Group at present intends to apply the net proceeds as follows: