Major Shareholder:

• Mr. Kang Kuo Shi ¡V 43.69% interest
• Mr. Wong Chun - 18.21% interest
• Mr. Hsia Chieh Wen - 10.92% interest

Company subsidiary

• Asia Link (100%): Overseas sales and marketing
• Asia Link(HK) (100%): Sales and marketing
• GME(100%) : Overseas sales and marketing
• Taiwan Branch(Taiwan)(100%): Research and development
• GM (HK)(100%): Sales and marketing
• Dongguan Glory Mark(PRC)(100%): Manufacturing & research and development

The Group is principally engaged in the design, development, manufacture and sale of connectivity products mainly for computers and computer peripheral products. Connectivity products currently designed and manufactured by the Group include computer cables, telecommunication equipment cables, electronic connectors, and data sharing devices, hubs and multimedia cables. Some of these products employ the use of Mounted PCBs, which enhance the functionality, transmission speed and/or capability for sharing data signals.

The Group's products can be divided into three categories, namely monitor cables, conventional I/O cables and multi-functional/high speed transmission connectivity products, with the first two categories of products accounting for over 75% of the Group's turnover during the Track Record Period. The majority of the Group's products are sold to OEMs and retail distributors. Some of these OEM customers then resell the Group's products to leading computer manufacturers while most of the retail distributor customers resell the Group's products directly to end users. The Group's products are mainly exported to overseas markets, such as Japan, Korea, the US and Taiwan.

Through its established long-term business relationships with the customers, the Group is able to obtain latest information about industry trends and changing customer demand. With the support from its two in-house research and development teams in Taiwan and the PRC, the Group manages to respond effectively and efficiently to technological advancements and change in customers demand by introducing new products to the market in a timely manner. The Group's production facilities are based in Tangxia Town, Dongguan, Guangdong Province, the PRC, which comprise factory buildings and staff quarters with a total gross floor area of approximately 17,200 sq.m.

With a development track record spanning over ten years, and in anticipation of the continuing increase in worldwide demand for computers, the Directors are confident that the Group will continue to grow. It is the mission of the Group to become one of the leading global manufacturers of computer and telecommunication equipment connectivity products in the future.

Fleck Research predicts that China will account for over 30% of the production of global connector industry. The Directors believe that the estimated industry growth in 2002 will bring business opportunities to the Group.

The Directors believe that the Group has the following competitive advantages:

• it's strong research and development capability, which enables the Group to design, develop and manufacture high quality and technologically advanced connectivity products;
• years of experience and strong technological know-how of its management team in development, manufacture and sale of connectivity products;
• its comprehensive quality control monitoring procedures throughout the production process, which are designed to ensure the high quality of the Group's products; and
• its long term business relationships with major customers of the Group, which enable the Group to obtain the latest information on technological development and changing customers' requirements.

• As to Reliance on the US market and the impact of the terrorist attacks on the US on the Group's exports to the US
• Net proceeds from the Share Offer are insufficient to finance the construction of the second phase of the Group's new production plant
• If there is any adverse change in the tax regulatory regime of the PRC or if the said tax provision should turn out to be inadequate to meet any actual tax liabilities or if the PRC tax authorities impose interest surcharges, the Group's profitability may be adversely affected.
• The performance of the Group could be adversely affected by short-term fluctuations in the demand for, and changes in the market conditions of, such computers and electronic communications networks.

In order to cope with the anticipated increase in demand for the Group's products and the introduction of new products, the Group intends to expand its existing production capacity. The Directors intend to acquire a piece of land with a site area of approximately 20,000 sq.m. Near its existing production plant in Tangxia Town and on which a new production plant and a new staff dormitory will be constructed to support the Group's expansion plan. The new production plant is expected to have gross floor area of 10,000 sq.m. to accommodate 13 new production lines and the staff dormitory is expected to have gross floor area of 4,000 sq.m.

To further enhance its research and development capability, the Group intends to increase the number of engineers and technicians in the research and development teams in Taiwan and the PRC for developing new connectivity products for computer, consumer and communication devices, in order to meet the growing market demand for broadband and high speed data transmission. In addition, the Group intends to continue improving the quality of and enhancing the functionality of its existing products in order to meet market trends.

The Group intends to expand its sales network by setting up a sales office in Japan and appointing marketing and distribution agents in Europe, Korea, the US and other Asian countries. The sales office in Japan will consist of a team of trained sales and marketing staff to provide after sale services for the Group's overseas customers and to promote the Group's new products. The Directors believe the set up of a sales office in Japan and the appointment of overseas agents would enable the Group to better meet local demand and therefore boost the overseas sales of the Group's products.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$27.0 million (based on the offer price HK$0.475 per share). The Group at present intends to apply the net proceeds as follows: