Major Shareholder:

• Dry Bulk Shipping (BVI) Limited - 22.93% interest
• IDB Carriers (BVI) Limited - 19.12% interest
• Pembroker Shipping Limited - 14.22% interest

The Group is one of the world's leading dry bulk shipping companies, operating principally in the Asia Pacific region. We provide marine transportation services and logistical support to our customers through the commercial operation of a large, modern and uniformly sized fleet of shallow-draft Handysize dry bulk carriers. We specialise in transporting minor bulk commodities, including forest products, iron and steel products, fertiliser, agricultural products cement and other products, generally out of commodities rich regions such as Australia, New Zealand and the west coast of North America into the high consumption areas of China and elsewhere in Asia.

The Group earns the revenues primarily by carrying a wide variety of cargoes from many load ports to many discharge ports as designated by our customers. Our costs comprise operating depreciation and financing cost for the vessels we own, charter-hire payment for vessels we charter in and general and administrative expenses. We are headquartered in the Hong Kong Special Administrative Region of China, with operations in Shanghai , Tokyo, Melbourne and London.

We commercially operate the world's largest fleet of modern Handysize dry bulk carriers between 25,000 and 35,000 dwt, comprising 42 vessels, of which we own 19, we charter in seven and we commercially manage 16 on behalf of third party owners. We have the option to purchase three of the seven vessels we charter in. The average age of our Fleet is only six years, which is substantially younger than the world Handysize fleet average age of 19 years. We believe our modern Fleet enables us to provide customers with a safer, more reliable service that has a high degree of operational flexibility and also improves our results through stronger revenues, reduce operating expenses and lower insurance and financing costs.

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

• The Group led by a team of senior managers and industry professionals with extensive experience in Handysize dry bulk shipping in the Asia Pacific and Atlantic markets. Our management team is experienced in all aspects of the business, including market analysis, chartering, vessel operations, technical management and crewing, safety and quality management, vessel sale and purchase, shipbuilding and repair, vessel finance and insurance.
• The Group believed that one of our key competitive strengths is our ability to deliver a high quality of integrated services to our customers. Our professionals work directly with shippers of dry bulk commodity products to develop tailored solution for their transportation needs.
• The Group operate a large, modern and uniformly sized fleet, which assists us to meet our customers'cargo requirement for reliable and flexible freight services.
• The Group believe that it has developed a significant market presence in the Asia Pacific region which enables us to respond to our charterers' requirements and provides the platform for efficient operations and a high level of capacity utilisation.
• The Group has strong relationships with most of our major suppliers , including crewing companies, insurance providers and shipbuilders. We work with crew manning companies to obtain officers and crew who are experienced in the operation and maintenance of Handysize vessels in international trades.

• Operate in an industry which is highly cyclical and subject to seasonal fluctuations.
• Operate in a highly competitive industry.
• Operate in a highly regulated industry.
• The Group may experience fluctuation in our operating results.
• An economic slowdown in the Asia Pacific region may have a material adverse effect on our business, financial position and results of operations.
• The Group may not be able to grow or to manage our growth effectively.
• Customers may default on their obligation under our contracts with them.
• There are risk associated with the construction of new vessels and the purchase of secondhand vessels.
• The Group may not be able to maintain the size of our Owned Fleet, Chartered Fleet or Managed Fleet.
• There are risks associated with debt finance which could adversely affect our business, financial position or results of operations.

Expand our managerial and operational capabilities to broaden our comprehensive customer service offering, We are expanding our Shanghai and Melbourne operations and are evaluating the possibility of opening an office on the west coast of North America.

Work with existing customers and new customers to develop and broaden further our customer base. Our increased presence in Shanghai, Melbourne and potentially the west coast of North America will enable us to undertake more extensive marketing efforts and increase the level of direct customer contract.

Implement active tonnage procurement programmes to acquire newbuildings and secondhand vessels, and charter in vessels to meet any increased demand for our services from our customers. A portion of the proceeds from the Global Offering has already been committed towards this initiative.

Focus our chartering operations on securing premium trades and back-haul cargoes.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately US$74.5 million (HK$581.0 million) (based on the offer price HK$2.55 per share). The Group at present intends to apply the net proceeds as follows: