Major Shareholder:

• Mr. Wong Man Kit and his family ¡V 73.0% interest

Company Subsidiaries:

• Aberdeen Maxicab Service co Ltd (100%): Operation of GMB routes, resident, bus routes and property holdings in Hong Kong
• Fastlink Transport Ltd (100%): Operation of GMB routes in HK
• Kit Kee Transport Co Ltd (100%): Operation of GMB routes in HK
• Sunning Transportation Ltd (100%): Operation of GMB routes in HK
• Capital Star Holdings Ltd (100%): Operation of GMB routes in HK
• Southern Distric Motor Service Centre (100%): Provision of repair and maintenance services for PLBs in HK
• Superlong Limited (100%): Operation of GMB routes in HK
• Tai Po (Fixed route) Public Light Bus Co Ltd (100%): Operation of GMB routes in HK
• Global Win Transportation Ltd (100%): hiring of PLBs in HK

The Group is engaged principally in the operation of GMB routes and the provision of PLB related services in Hong Kong. FMBs are PLBs that provide scheduled services with fixed routes, fares, vehicle allocation, and frequency and service hours stipulated by the Transport Department. GMB routes must be operated by qualified GMB route operators and are generally offered through open tender by the Transport Department. Under the existing marketing scheme, in assessing an application for GMB routes, the Transport Department will consider among other things the experience in transport service, the vehicle quality and the financial resources of an applicant. However, there is no express requirement by the Transport Department that a qualified corporate GMB routes operator must own any GMB for operation.

RMBs, on the other hand, are PLBs that provide non-scheduled services with no fixed routes, fares, vehicle allocation, frequency and services hours prescribed by the Transport Department. Nonetheless, RMBs are subject to certain restrictions on service areas. Any person with a valid driving license, which allows him to drive PLBs, can operate this RMB business with an owned or leased RMB.

The directors consider that the Group is one of the leading GMB routes operators in Hong Kong. The Group currently operates 40 GMB routes under 13 PSLs using 12 owned and 266 leased GMBs. The Group also operates 2 resident bus routes, which are intended to supplement the Group's GMB services. In addition, the Group provides PLB related services, including repair and maintenance, advertising and rental and administration of PLBs.

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

• The Group has a proven record in the operation fo GMB routes in Hong Kong wihc extends over 28 years;
• The Group is one of the leading GMB routes operators in HK. The Group currently operates a total of 40 GBM routes in HK;
• The Group has very strong cashflow. Its GMB and resident bus services are paid for in cash or by Octopus cards;
• In view of the expansion of Hong Kong's railway network over the next few years, the Directors consider that there will be business opportunities for the Group to expand its GMB services;
• The Group possesses a management team with extensive experience and expertise in the operation of GMB routes in HK;
• The Group has implemented stringent control measures to enhance its operating efficiency; and
• Efficient operating record.

• Reliance on leasing of GMBs
• Renewal of licenses for the operation of GMB routes
• Potential liability
• Shelters and kiosks
• Reliance on key management
• Obtaining and termination of GMB routes
• Property damage and penalties in connection with parking of the Group's vehicles

Apart from the tendering for new GMB routes from the Transport Department, the Directors expect that the Group will continue to expand its GMB route network through the acquisition of other corporate GMB routes operators. Although the directors currently have no acquisition targets under consideration, they plan to leverage their experience to prudently and selectively pursue acquisition opportunities to expand the Group's GMB routes as they any arise. Based on the Group's track record, the Directors, consider that the estimated use of HK$22 million for the acquisition of GMB routes is appropriate.

The Directors consider that expansion of the railway network will offer opportunities for the Group to expand its GMB business by providing feeder services between railway stations and areas which don not justify the cost of running franchised bus services. The Hong Kong Government is also considering the establishment of new public transport interchanges, including stations on the West Rail, such as Kam Tin, and new railway stations on the Central and Wan Chai Reclamation. The Directors believe that these infrastructure projects are likely to generate demand for new GMB routes, for which the Group will be able to tender. It is the present intention of the Director to utilize HK$10 million from the net proceeds of the Share Offer as deposits and working capital for new GMB routes that may be tendered by the Group

The Group has invested in the use of information technology and relates equipment with a view to enhancing to operating efficiency. The Director intend to continue to upgrade the Group's technology infrastructure to enhance the operating efficiency of tis GMB services and the management of its repair and maintenance services. The Group is in the process of expanding a platform that will provide real time monitoring of traffic flows and the Group's GMB fleet. It aims to further improve the efficiency of vehicle deployment and facilitate overall fleet management.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$39.0 million (based on the offer price HK$1.07 per share). The Group at present intends to apply the net proceeds as follows: