Major Shareholder:

• Ms. Chen Wai Yuk ¡V 75.0% interest

Company Subsidiaries:

• Gerards Agents (100%): Commission agency for overseas sales
• Wang Sing Products (HK)(100%): Trading of power tools
• Dong Xin (PRC)(100%): Manufacture and distribution of power tools
• Golden Harbour (PRC): Manufacture and distribution of power tools and related products.

The Group distributes power tools, which are sourced in the PRC. With its product design and quality assurance capabilities, the Group is able to identify the needs and preferences of its customers and match them through the introduction of new products and/or enhancements of existing products. The Group has built up a customer base of over 20, including renowned chain store operators and leading European power tools distributors such as Leroy Merlin, TIP and Auchan.

The power tools solid by the Group are generally understood as electrically powered working tools which, according to different applications such drilling, cutting and polishing, produce different types of rapid motions to achieve their intended usage. The Group's products include electric drills, electric hammers, electric cutters, electric saws, electric grinders, bench tools and gardening tools

The Group has established network of close to 50 suppliers in Anhui, Guangdong, Jiangsu, Shandong and Zhejiang provinces in the PRC who offer the Group a wide array of quality power tools products. Also, the Group established Dong Xin, a Sino-foreign equity joint venture in the PRC, in 1996 to engage principally in the manufacture and sale of power tools with an aim to extending its market presence in the PRC as a power tools distributor with manufacturing capability. Taihu, the PRC joint venture partner of Dong Xin, is a sizeable power tools manufacturer in the PRC.

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

• Its design and technical capabilities which enable the Group to provide quality pwer tools tailored to its customers' needs and preferences;
• The technical expertise, experience and market knowledge of its management in the power tools industry;
• Its success in implementing its outsourcing strategy which allows the Group to take advantage of the manufacturing capabilities of its network of suppliers and shortens the lead time for the launch of new or enhanced products;
• Its capability to provide core support services to its suppliers from the product design and development stage to the export stage;
• It¡¦s close and stable relationship with its customers; and its emphasis on quality control, which is evidenced by the accreditation of the Group with the ISO9001 certification.

• Reliance on major customers;
• Reliance on major suppliers;
• Reliance on the European markets;
• No proven track record on the sale ODM products bearing the Group's own brand name
• No proven track record to the DIY chain store operations

The Directors consider that one of the competitive edges of the Group is its design and development capabilities. The Directors intend to continue to enhance these capabilities through recruiting high cailbre design engineers. The Group also intends to strengthen its collaboration with universities in Nanjing for future product design and development.

In response to demands for overseas DIY chain store operators for power tools tat are designed and produced in series, the Directors intend to introduce various series of power tools products for targeted customers DIY chain store operators. The Directors also aims to explore the market for other tools bearing similar mechanical designs of power tools which are not electrically powered. The Group will continue to co-ordinate closely with its major customers to identify and anticipate customers needs and preference and to introduce innovative products in a timely manner.

The existing production facilities of the group in Suzhou, the PRC is capable of providing only limited support on the Group's distribution operations. To cope with the anticipated increase in the range and volume of products, the Directors plan to establish new production facilities in (Hai An County Economy and Technology Development Zone), Jiangsu Province. The new production site has a site area of about 200,000 sq.m. The Directors expect that the end of 2003 will complete the construction of the manufacturing facilities.

Given that there is a relatively small number of home improvement centres in the PRC, the Group intends to form suitable alliances with retailers for chain store operators for the setting up of DIY chain stores in selected regions of the PRC. To this end, the Group has identified and is in discussion, at very preliminary stages, with a renowned European DIY chain store operator as the Group's foreign joint ventures partner.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$66million (based on the offer price HK$0.95 per share). The Group at present intends to apply the net proceeds as follows: