C. Business Operations

1. The businesses and operations of the company and its subsidiary
companies are:

1.  Jewellery Centre, a 34 storey office condominium building with 111
    units covering a total area of 42,833.78 sqm. for sale and lease,
    situated at 138 Nares Road, Sipraya, Bangkok. The retained interest
    as of 31 December 2005 was 18 units with a total area of 12,307.37
    sqm. or 28.73% of the total gross floor area.

2.  Sattahip Land, raw residential land awaiting development covering a
    total area of 222-1-99 rai, located at Highway 332, Bangsare
    Sub-district, Sattahip District, Chonburi Province.

3.  Sukhapiban 3 Mansion, a 19 storey residential condominium with 1,024
    units, located at 22/1 Sukhapiban 3 Road, Huamark, Bangkok. The
    retained interest as at 31 December 2005 was 4 units with a total
    area of 238.66 sqm.

4.  Chiang Mai VIP Tower, a 4 storey office condominium with retained
    interest in 4 units with a total area of 890.88 sqm, located at
    188/1-2 and 188/5-6 Moo 1 Huay Kaew Road, Changpueng Sub-district,
    Muang District, Chiangmai Province.

5.  Villa Arcadia Watcharapol Project, 78-0-46 rai freehold land with
    development plan for about 270 units of 2 storey detached houses.

6.  Villa Arcadia Srinakarin Project, 101-1-82 rai freehold land with
    development plan for 367 units of 2 storey detached houses.

2. Review of the Property Market

Economy

In 2005, the Thai economy grew 4.5%, down from 6.2% growth recorded in
2004. Nonetheless, the economy displayed resilience and fundamental
strength amidst surging oil prices, rising interest rates, higher
inflation, a new wave of avian influenza outbreak, and continued unrest
in the Southern provinces.

Demand for property for sale and rent were healthy but slower in 2005
due to economic uncertainty which resulted in weaker buying confidence.
However the overall pace of development activity in Bangkok also slowed
down during this period. The cooling on the supply side is viewed
positively as it helped to improve inventory balance. Sectors within the
property market are in different stages of the growth cycle, with some
sectors leveling off because of new supply while others are in earlier
stages of the growth cycle.

Despite the political uncertainty seen in the first few months of 2006,
the Bank of Thailand (BOT) maintains its projection that economic growth
for the year will be improved to 4.75 – 5.75%, with inflation rate
expected at between 3.5 - 5.0%. Domestic consumption is projected to
rise by 3.5 – 4.5% and investment growth projected at 10.5 – 11.5%. We
remain optimistic that a bulk of the scheduled investment for the
mega-infrastructure projects for 2006 will remain on track.

Overall, rising income in both private and public sectors and reduced
inflationary pressures should encourage a rebound in consumer sentiment
and private consumption particularly in the latter half of the year.

[]

Source : Bank of Thailand

Housing Market

The housing market faced a number of challenges in 2005 with increasing
construction costs, rising interest rates and weak consumer confidence.
Lenders adopted cautious attitudes to providing project finance which
affected many smaller developers in launching new projects. This
resulted in a consolidation of active developers and a slowdown in new
launches on the market.

In the tightening environment, many developers sought to diversify their
strategies by working with development partners or contractors, or using
innovative financial tools such as property funds. Many developers
announced plans to compete in lower priced market segments in the hope
of capturing a more sizeable and stable market. Increased construction
costs and land prices also encouraged developers to do smaller projects
with fewer units. Meanwhile, some developers sought to expand to
secondary cities such as Phuket and Pattaya.

In 2005, the total number of new residential supply registered in
Bangkok and vicinity areas was 67,829 units, representing 8% growth over
the 62,796 units registered in 2004.

We see opportunities will continue to exist across price segments.
Developers who concentrate on higher-end developments will have to
improve their product specification and design to match the more
sophisticated requirements of homebuyers. Prices for high-end products
will be closely linked to quality and location, whereas prices for the
middle and lower market segments will be unlikely to fall as a result of
buoyant demand.

The demand outlook in 2006 will be for continued growth in line with the
overall economic performance. We expect improving economic conditions to
encourage business sentiment and revive consumer confidence. Sustained
high levels of employment and job security, rising wages, and a net
growth in new nuclear families will continue to be key factors in
stimulating housing demand.

Condominium Market

In 2005, there were about 17,400 new condominium units launched in the
greater Bangkok Metropolitan Region, representing 16% growth over the
15,000 units launched in 2004. The supply of lower-priced condominiums
in suburban areas, especially around present and future mass transit
routes has started to grow.

However, new condominium launches in downtown Bangkok areas has dropped
37% to 4,869 units in 2005. This is due not only to a slowdown in
private developer projects in downtown areas, but also due to the
increasingly scarce supply of good downtown sites suitable for
condominium development.

Within the downtown areas, the popular Sukhumvit area had only 473 units
launched during the year with prices averaging at Baht 80,000 baht per
sqm. The take-up rate in Sukhumvit remains healthy at 77%. The Chao
Phraya Riverside/Rama III area saw the largest growth in 2005, with
2,118 new units launched during the year. Riverside units were priced at
an average of Baht 70,000 per sqm and had a take-up rate of 58%. The
Silom/Sathorn area and the Lumpini/Ploenchit area saw 1,069 units and
130 units launched respectively during the period. Both these areas
continue to experience good take up of around 69% to 75% while
commanding the highest average prices at around Baht 97,000 per sqm. The
Patumwan area saw an additional 1,079 units launched with average prices
at Baht 78,000 psm for freehold units, however overall take-up has been
relatively low at 47%.

The residential market should continue to expand in 2006. Supply growth
should be at a moderate pace as the market continues to adjust to
greater equilibrium between supply and demand. Supply will be more
focused on middle and lower market segments with robust growth expected
in the condominium sector as more projects with lower priced units
emerge in suburban centers with convenient connection to mass transit
system routes.

Challenges to developers in 2006 will include financing and cost
control, higher standards of product innovation and quality control to
meet higher customer expectations. The mass transit system routes will
continue to play a key role in shaping new supply in the near future.