Mr. Wei Dong and his wife -71.25% interest

Company Subsidiaries:

• Sky Achieve Limited 100% Investment holding
• Fu Ji United (Suzhou) Catering Co. Ltd. 100% Operation of a Chinese restaurant and provision of catering services
• Fu Ji United (Shanghai) Catering Ltd. 100% Operation of Chinese restaurants and provision of catering services

The Group is a leading food and catering services provider in the PRC. The Group currently provides three principal lines of food and catering services in Shanghai and Suzhou, namely catering services, Chinese restaurants and convenience food products. Catering services provided by the Group include institutional in-house catering services, event-based catering services, onsite dining services and business lunch delivery. Such services are aimed at serving the needs of customers, which include local and international organisations such as Panasonic, Amkor Technology, Hi-P Electronics and BenQ as well as general workforce from major business districts in Shanghai and Suzhou. The target market of the Group¡¦s Chinese restaurants is corporate clients and high net worth individuals while convenience food products are targeted at general working public who wants to dine at home in a convenient way.

During the Track Record Period, the Group¡¦s business comprised:

• the provision of catering services in Shanghai and Suzhou;
• the operation of Chinese restaurants: two in Shanghai and one in Suzhou; and
• the sale of convenience food products under the ¡¥¡¥Home Kitchen¡¦¡¦ label.

The Directors believe that the Group has following competitive strengths:

• Complementary businesses

The various business lines of the Group share resources, where possible, and helps the Group to reduce risks associated with over-concentration of any particular line of business.

• Efficient operation

• Economies of scale

• Consistently high quality of products/services

• Strategic location in affluent and high growth regions

Demand for quality dining in Shanghai and Suzhou is expected to rise as the spending power of the population increases. The Directors believe that the Group¡¦s restaurants are well-positioned in the restaurant industry to benefit from this growing trend.

• Commitment to food safety

• Well-educated management

• Reliance on key personnel
• Supply and fluctuation in the cost and quality of raw materials
• Reliance on prompt delivery and quality transportation
• Food contamination
• Rental exposure and availability of strategic locations
• Leased property
• Dilution of shareholders¡¦ interest as a result of the conversion of the Note
• There is no assurance that preferential tax treatment will remain available to Shanghai Fu Ji and the second year income tax exemption granted to Suzhou Fu Ji will not be revoked
• Immediate and substantial dilution in value per Share as the Offer Price is substantially higher than the net tangible book value per Share of the Group
• Infringement of intellectual property rights

The Group aspires to become China¡¦s best managed food and catering services provider serving fresh, healthy and modern Chinese food to corporates, family households and working individuals. Furthermore, the Group intends to industrialise its operation to further enhance its profit margin and quality assurance. To achieve these objectives, the Group intends to adopt the following plans to realise its future growth strategies:

• The establishment of sourcing and initial processing centres to enhance quality of food ingredients and to lower costs

The Group plans to establish sourcing and initial processing centres at Shandong, Zhejiang and Hainan provinces to source food ingredients for the Group from origin sources.

• The establishment of more processing centres to expand business reach

The Group intends to establish additional processing centres at Songjiang, Wuxi and Shenzhen areas to expand the Group¡¦s businesses to those regions.

• The establishment of more Chinese restaurants in selected areas

The Group intends to further develop its restaurants business and establish a restaurant chain in the PRC. The Group has leased two blocks of commercial building in the Suzhou Industrial Park with a view to establishing the Suzhou Industrial Park Restaurant.

• Further development of the range of ¡¥¡¥Home Kitchen¡¦¡¦ convenience foods

Assuming that the Over-allotment Option is not exercised, the net proceeds of the Share Offer, after deduction of underwriting commission and estimated expenses of approximately HK$22 million payable by the Group, are estimated to be approximately HK$288 million (approximately equivalent to RMB305 million). The Directors currently plan to use such net proceeds as follows: