Major Shareholder:

• Mr. Fu Wai Chung - 55.5% interest
• Pan Asia (Cayman) and Pan Asia Fund II - 10.0% interest

The Group, which commenced business in November 1995, provides comprehensive real estate agency services mainly in Guangzhou as well as various areas of the Guangdong province and other cities such as Tianjin in the PRC. The Group currently focuses its business on the primary residential property market. It provides a range of quality services to property developers and buyers which include real estate agency services for the primary residential property market, development, marketing and planning consultancy services and conveyancing services. The Group also provides real estate agency services relating to transactions in the secondary property market in Guangzhou.

According to the announcement issued by ¼s¦{¥«°ê¤g¸ê·½©M©Ð«ÎºÞ²z§½ (Guangzhou Land Resources and Property Management Bureau)(formerly known as ¼s¦{¥«°ê¤g§½ (Guangzhou Land Bureau ) and ¼s¦{¥«©Ð¦a²£ºÞ²z§½ (Guangzhou Property Management Bureau)) dated 13 January 2004, there were 629 real estate agents in Guangzhou in 2003 which were classified into first, second and third grades. Such classification was based on, amongst other things, working capital level, number of licensed agents employed, years of experience in the real estate agency business and total floor area transacted during the year. Among the 629 real estate agents, GZ Hopefluent RP Consultancy was one of the13 agents which were classified with first grade status.

One of the main advantages of attaining the first grade status for real estate agents is the eligibility to provide development and planning conultancy services which include, among other things, the provision of (i)advice on investment strategy relating to real estate; and (ii)feasibility study and analysis of property projects. Given that the Group has the first grade status in Guangzhou and is able to provide development and planning consultancy services (only real estate agents with first grade status are eligible to conduct this area of business), the Directors believe that the Group is well-positioned to capture additional business opportunities in the primary property market in Guangzhou and other cities of the PRC.

The Directors consider that the success of the Group is primarily attributable to the following factors:

• Real estate agent classified as first grade in the primary residential property market in Guangzhou
• The Group was one of the 13 real estate agents which provided real estate agency services for the primary residential property market in Guangzhou that were classified with first grade status in 2003.
• Established business relationships with several property developers in the PRC
• The Group has established long-term business relationships with several property developers which are capable of developing large scale property projects in the PRC. The Group offers a range of quality services to property developers in the PRC over various stages of a property development. The Group's ability to offer comprehensive services to meet property developers' requirements enables the Group to market real estate projects in an effective and efficient manner.
• Professional and quality services to serve as a bridge between property developers and property buyers
• The Group has a team of real estate agents with extensive knowledge and experience in the real estate business in the PRC. With in-depth knowledge of local lifestyles, the Group is able to understand the requirements of local buyers, thus serving as a bride between property developers and property buyers.
• Experienced management team to provide real estate agency services
• The Group's management team has extensive experience in the real estate business in the PRC. Such experience not only relates to agency business but also include ancillary services such as development consultancy. Such experience will enhance the Group's ability to procure further business opportunities.

• Reliance on the executive Directors
• Reliance on the PRC property market, in particular Guangzhou
• Sustainability of high profit margin
• Sustainability of low effective tax rates
• Reliance on certain property developers
• Failure to renew real estate agency agreements with property developers upon expiry

Being one of the 13 real estate agents classified as first grade in Guangzhou in 2003, the Group is expected to benefit from the increase in both primary and secondary property sales and transactions in Guangzhou. With its expertise and ability to provide comprehensive services in the areas of development, marketing and planning consultancy, it is expected that developers may be inclined to engage the Group's services as more new development projecrs are being launched in Guangzhou and other cities in the PRC.

The Group plans to expand its real estate agency operations in the primary residential property market into other cities in the PRC, such as Beijing and Shanghai. It intends to work closely with property developers, including those with whom the Group has established relationships from previous projects, and to obtain businesses from them as they expand their businesses and commence property development projects in other cities in the PRC. For instance, the Group has recently secured large-scale real estate projects in Tianjin from such developers as well as new projects from local developers in Tianjin.

The Group is committed to providing quality professional services to property developers and potential buyers. Hence, the Group places strong emphasis on staff training. The Group intends to continue to organise in-house training, including seminars and monthly meetings for its staff to improve their professional knowledge, and to conduct exchange programs on marketing and management skills with local tertiary institutions.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$52 million. The Group at present intends to apply the net proceeds as follows: