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Monday, 07/05/2004 8:45:23 PM

Monday, July 05, 2004 8:45:23 PM

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excerpts from 20F sec filing-annual report

We have obtained ten certificates as related to our security products from all related government bureaus in the past three years, which represents their recognition of the superiority of our products.

Our most outstanding products of the network security sector include Security Gate and IPSSS. Due to complicated technical requirements, these products face the lowest competition in the market and gives us the highest gross profit margin compared to other products in the market

-----Other products focus on two important areas of Internet application – network management and e-business software development:

Network management. Network management primarily includes the BHL LDAP Catalogue Server, BHL Search Engine V2.0

we have obtained all necessary certificates from relevant government bureaus proving our advanced technological status, we will apply to the relevant authorities to use our product standards as the industrial standards in China.



Beijing Holdings, the controlling shareholder of the Company, is the sole window company of the Beijing Municipal Government established in Hong Kong.

In March 2003, BBHL had entered into an agreement with the Legend Group, for a period of three years ending on March 14, 2006, to produce the Security Gate under the “Lenova” brand, the unique brand name owned by the Legend Group.