• Tianjin Investment Holdings Limited-46.5% Interest

• Grand Spirit Holdings Limited (100%)¡GInvestment holding
• Sino-French Joint- Venture Dynasty Winery Ltd. (100%)¡GManufacturing and sales of winery products
• Shangdong Yu Hunag Grape Wine Co., Ltd. (65%): Manufacturing and sales of winery products

The Group is engaged in the production and sale of grape wine products under the Group�s trade marks in the PRC. The group produced over 50 wine products since Dynasty¡¦s establishment, which can broadly be divided into four main categories: red wines, white wins, sparkling wines and brandy. The annual production capacity of the Group as at 30 September 2004 was approximately 30,000 tonnes. The Group sells its products in 16 provinces and autonomous regions and hour municipalities directly under the Central Government of the PRC. The Group also exports a small portion of its products to overseas such as the U.S., Macau and Hong Kong. The group �s production plants are currently located in Tianjin, the PR. The industrial complex comprises wine processing production machinery, such as crushers, filtration facilities, refrigeration facilities, storage facilities, the bottling and packaging lines and wine cellars.

The Directors consider the group¡¦s competitive strengths to be as follows:

• The recognition of the Dynasty " brand name for grape wine products in the PRC
• Expertise and knowledge in the development of the grape wine market in the PRC
• Dedication and adherence to quality control and the production of quality wine products
• Established relationships with key customers and large customer base
• The expertise of Remy Cointreau, an indirect substantial shareholders, in the wine and spirit industry.Remy Cointreau is one of the principal operators in the world wine and spirit markets with a portfolio of well know brands including Remy Martin cognac, the orange liqueur Cointreau and Metaxa brandy.

• Reliance on supply of grapes and grape juice
• Natural disasters
• Reputation and brand name recognition
• Trade marks
• Reliance on the PRC market
• Reliance on key management
• Products liability
• Preferential tax treatment
• Grant and renewal of permits and business licenses
• Implementation of business plans and growth strategies
• Use of cash flows
• Increase production capacity to prepare for an increase in market share
• Maintenance of high profit margin
• Reliance on sale of red wine products
• Reliance on major distributors and customers
• Dividends Policy
• Non-completion of the Smiling East Acquisition
• Absence of building title certificates

The group�s mission is to capture significant market opportunities in the win industry in the PRC and to maintain as one of the PRC leading grape wine producers. The Group¡¦s direct access to the capital markers for equity and/or debt financing as a public company will support the long term strategic planning for the development of the "Dynasty" brand name. By raising funds from the capital markets, the Group will expand its existing production facilities and strengthen its distribution channels in order to cope with competitions in the PRC and to enhance business growth. To attain its mission, the Group plans to execute the following strategies:

• Strengthening the market share of the Group�s products by focusing on the "Dynasty¡¨ brand name and the high quality f its products throughout the PRC and overseas. The group intends to continue its plan to attract higher end consumers by introducing better quality products.

• Expanding the Group�s annual production capacity to approximately 50,000 tonnes by early 2006 and the approximately 70,000tonnes by the end of 2008 by acquiring more land for building industrial complex, constructing more wine cellars and acquiring more wine production machineries.

• Exploring and developing new markets for the Group�s products by expanding its sales forces and marketing activities and expanding its sales network by setting up more sales points and representative offices, particular in strategic locations in the northwestern region of the PRC where it currently does not have presence and also in northeastern region of the PRC of the PRC where the Group intends to enhance its presence.

• Build a reliable and solid grape supply base to meet the need of the growing business by further implementing vertical acquisition one of its grape juice suppliers, Tianyang. To expand the Group�s market share, the Group also intends to acquire grape wine producers to expand its local and overseas wine production capability.

Assuming an offer price is HK$2.00 per share (being the midpoint of the sates price range of HK$1.75 to HK$2.25 per share, the net proceeds of the share offer, after deducting underwriting fees and estimated expenses payable by the Company in connection with the Share Offer, are estimated to be approximately HK$550 million.