Our competitive strengths are as follows:-

(a) Strong Leadership and Dedicated Management

We are led by a dynamic, dedicated and experienced management team. Our CEO, Zhang Zhongliang, has 18 years of experience in metal-stamping and plastic injection moulding production processes for the consumer electronics industry. Zhang Zhongliang's drive and passion for our businesses have been instrumental to our success to date. He has conceptualised and implemented our strategies in the past and successfully led us to become an integrated manufacturing services provider in the consumer electronics industry. In addition, our Executive Director, Zheng Yimin, and our Executive Officers have an average of more than 10 years of experience in their respective fields. These personnel ably support our CEO in managing and charting our growth. Please refer to the section "Directors, Management and Staff" for more details on their experience and qualifications.

(b) Integrated Manufacturing Services

We have built a reputation for being a reliable integrated manufacturing services provider over the years. Currently, we mainly manufacture, assemble and supply electronic tuner components for MNCs in the consumer electronics industry. With our capabilities in design, mould fabrication, precision metal stamping, plastic injection moulding, precision die-casting, assembly and electroplating, we are in a position to comprehensively meet our customers' needs for metal parts and plastic components. In addition, with our integrated manufacturing capabilities, we are able to better manage our production process, product quality and delivery schedules, thereby enhancing our responsiveness to our customers' production needs. Typically, our turnaround time (from receipt of purchase order to the time the products are ready for delivery) ranges from three to 15 days. As a result, our customers enjoy shorter turnaround time and lower manufacturing costs.

(c) Production Technology and Engineering Capabilities

We have invested in mould fabrication equipment such as wire-cutting machines, CMC machines and EDMs and utilise CAD/CAE and application design software, such as AutoCAD, Moldflow, Pro-Engineering and Unigraphics to equip ourselves with the relevant and latest technology to meet our customers' requirements. As at the Latest Practicable Date, we employed 27 engineers for mould design and 47 engineers for mould assembly and testing. Our engineers have an average of 5 years of experience in tooling. In addition, we have a research and development team in place to develop new products, new materials and new production processes, designs and technologies to meet the demands and requirements of our customers and to improve our production efficiencies. We believe that our research and development capabilities have been an important factor to our success to date. With our research and development team and our advanced plant and equipment, we are in a position to meet increasingly stringent quality standards required by our customers.

(d) Quality Products and Services

We place strong emphasis on the quality of our products and services and have implemented a stringent quality assurance system in our operations and processes to ensure that we are able to consistently produce quality and reliable components. We are committed to providing quality products and services to our customers at competitive prices. To ensure that our customers are satisfied with the quality of our products, we have also implemented comprehensive controls on the quality of our in-coming materials and manufacturing processes. We believe in continuing education and invest in training programs for our employees, mainly our management and engineering staff, to enable them to learn and acquire new skills. These training programs enable us to maintain a productive workforce, whose skills are constantly upgraded to keep pace with the new changes in technology. We also regularly obtain feedback from our customers on our products and service quality.

As a testimony to our commitment to quality, we received the accreditations of ISO 9001:2000 and QS9000:March 1998 from BSI Management Systems. Please refer to the section "Quality Control" for more details.

(e) Established Relationships with Our Customers

We have established close working relationships with our customers through regular contact with them. We view our customers as long-term business partners and we cultivate the relationships and build rapport based upon mutual trust and co-operation. To this end, we render our services and expertise to our customers at the early stage of product conceptualisation. We constantly strive to improve our services by increasing the speed and efficiency of our production, maintaining consistency in the quality of our products and ensuring prompt delivery to our customers. We also provide after-sales services to our customers to further enhance our customers' experience with us. Our customers comprise the ALPS Group, the LG Group, the Panasonic Group, the Philips Group, Sanyo (Japan), the Samsung Group, the Sharp Group, the Sony Group, the Toshiba Group and the Thomson Group. Sales from repeat customers accounted for 92.0% of our sales in both FY2004 and FP2005. We keep ourselves updated on our customers' product and business developments, so that we can better anticipate their changing needs and provide them with other higher value-added services. To this end, we have established our operations in close proximity to our customers in locations such as Dongguan City in Guangdong Province, Wuxi City and Suzhou City in Jiangsu Province.

(f) A Cohesive and Learning Workforce

We inculcate a learning culture within our Group through training and development programs for our staff, to keep abreast of changes in technology and advances in management methods. Our training and development programs for our staff include sponsoring our key management team for Executive Master of Business Administration courses and sponsoring our key engineering staff for overseas training to acquire new technical skills and knowledge. We believe that through these activities, we are able to build a more cohesive, learning and productive workforce that will contribute to the success of our Group. Please refer to the section "Employees" for further details.