• Finet International Holdings Limited - 74.08%

• Finet Group (BVI) Limited 100% ¡V Investment holding
• Finet Group Technology (Shenzhen) Limited¡V Provision of financial information services in Mainland China
• Finet Holdings Limited 100% Provision of financial information management and technology solutions and investment holding in Hong Kong
• Finet Investment Advisers Limited 100% Provision of investment advisory services in Hong Kong
• Finet Introducing Broker Limited 100% Provision of securities dealing referral services in Hong Kong
• Finet News Services Limited 100% Provision of financial information services in Markets Express Hong Kong and Mainland China

The Group has been a technology-based financial information provider engaging in the development, production and provision of financial information services and technology solutions to corporate clients and retail investors. Developed based on Internet technologies, the Group¡¦s products and services have been used by major banks and brokerage houses in Hong Kong for real-time financial data transmission, financial content management and financial information solutions to help online securities trading and investment decision making.

The Group¡¦s products and services can be categorised into three types: FITS for corporate customers, Finet PowerStation for institutional investors and Finet Web Products for retail investors.

Finet Information Technology Solutions

FITS is the Group¡¦s proprietary technology platform for standardising and deploying financial information systems, database management and content provision from a wide range of internal and external sources.

Finet Powerstation

Finet PowerStation is the Group¡¦s terminal product with a focus on Chinese language content. As a stand-alone application software, Finet PowerStation offers an integrated solution for cross regions financial news and data analysis in one place.

Finet Web Products

Finet Web Products are packaged financial information products through its website, www.e-finet.com for retail investors.

The Directors consider that the Group possesses the following competitive strengths:

• the Group is an established technology-based provider of integrated financial information services and technology solutions in the finance and banking sectors in Hong Kong
• the Group is a recognised provider of financial information, news and comprehensive database of listed companies in Hong Kong;
• the Group has established a technological know-how in migration and integration of the customers¡¦ existing segregated securities trading and financial information infrastructures;
• the Group has a proven track record in serving corporate and retail customers
• the Group benefits from its strong international shareholder base and international business alliances and has successfully secured business relationships with some major banks and brokerage houses in Hong Kong
• the Group has an experienced management team with market responsiveness.

• Unproven sustainable profit and cashflow track record of the Group¡¦s operations
• Offer of Finet Web Products in the PRC is subject to specific regulatory requirements in the PRC
• Turnover attributable to FITS accounted for largest share of the Group¡¦s turnover
• Impact on the possibility of termination of licences and approvals
• Reliance on key suppliers
• Reliance on key management
• Reliance on ability to secure contracts
• Reliance on key customers
• Increase in director¡¦s remuneration following the Placing
• Business objectives are based on certain assumptions
• Additional funds may be needed to develop new services and expansion of markets in the future
• Potential product liability
• Intellectual property infringement
• Reliance on technology
• Dividend policy

To realise the Group¡¦s mission and capture potential market opportunities, the Directors have formulated the following strategies:

• Enhancing the Group¡¦s technology and product development capabilities and IT infrastructure

The Directors consider that one of the Group¡¦s competitive strengths is its market responsiveness and hence, the Group is required to keep up its competitive edge in product innovation to meet customers¡¦ demand by adopting the latest technology development. In this regard, it is the Group¡¦s strategy to enhance the Group¡¦s products and services, roll out new products and services to meet the market demand and improve the capabilities and efficiency of its existing IT infrastructure.

• Enhancing the Group¡¦s content development capabilities

It is the Group¡¦s strategy to enhance the financial contents on Finet PowerStation and those available through FITS. To enhance the varieties of contents, the Group intends to provide data of equity and futures markets, news and research covering the PRC, Taiwan and the US financial markets.

• Strengthening the Group¡¦s sales and marketing efforts

The Group intends to continue to expand the customer base of FITS in Hong Kong and promote Finet PowerStation to corporate clients by direct marketing and sales. The Group intends to seek qualified distribution and sales agents to market and distribute Finet PowerStation in Taiwan and Singapore.

• Expanding the Group¡¦s business into the PRC

It is the Group¡¦s intention to expand the business of integrated financial information services and technology solutions in the Greater China Region.

Based on the Placing Price of HK$0.275 per Share (being the mid-point of the indicative Placing Price range between HK$0.25 per Share and HK$0.30 per Share), the Company intends to raise capital through the listing on GEM of approximately HK$31.7 million. The net proceeds of the New Issue, after deducting related expenses payable by the Company, are estimated to amount to approximately HK$21.6 million. It is intended that the net proceeds will be applied as follows: