not seek professional advice and were not aware that the transaction contemplated thereunder
constituted a connected transaction for the Company. At the same time, the Company was
overwhelmed by a tremendous amount of workload during the intervening period immediately
before and after the initial listing of the shares of the Company on the Main Board of The
Stock Exchange of Hong Kong Limited on 28 March 2002. As a result of the overwhelming
workload and the inadvertence of its officers, the Company failed to make prompt disclosure
of the Assets Entrusted Agreement. The delayed disclosure of the Assets Entrusted Agreement
constitutes a breach of Rule 14.25(1) of the Listing Rules. The Stock Exchange reserves the
right to take appropriate action against the Company and its Directors.
- 2 -
THE ASSETS ENTRUSTED AGREEMENT
Parties and major information of the Assets Entrusted Agreement
(1) The Assets Entruster: Beijing NB
(2) The Assets Entrustee: Ms. Wang On Cheung
(3) The Guarantor: Ms. Wang On Cheung
(4) The Entrusted Assets:all the underlying assets of the Natural Beauty spas
situated at 北京市广安门南街四十二号一,二,三,
四楼全部 and 北京市丰台区方庄芳古园一区三
十一号楼一,二楼全部 and operated by Beijing NB
(5) The Entrusted Period: five years commencing from 2 July 2002 to 1 July 2007
Based on the PRC audited accounts of Beijing NB for the year 2002, its net loss after tax and
extraordinary items amounts to RMB2,902,323, of which a net loss of approximately RMB2,830,091
can be attributed to the Entrusted Assets for the period from 2 July 2002 to 31 December 2002.
Principal Terms of the Assets Entrusted Agreement
Pursuant to the Assets Entrusted Agreement, Beijing NB agreed to appoint the Operator, Ms.
Wang On Cheung, to manage and operate the Entrusted Assets. The scope of operation includes
the provision of spa and beauty services, the sale of beauty and skin care products under the

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