Major Shareholder:

• Mr. Cheok Ho Fung - his wife Mrs. Choek Chu Wai Min ¡V 75.0 % interest

Company Subsidiaries:

• Topsearch HK(100%): Investment holding and sale of PCBs
• Topsearch Thailand (100%): Provision of marketing services
• Topsearch Malaysia (100%): Provision of marketing services
• Topsearch UK (100%): Provision of marketing services
• Topsearch Taiwan (100%): Provision of marketing services

The Group is engaged principally in the manufacture and sale of a broad range of double-sided and multilayer printed circuit boards (PCBs). The Group has a global customer base comprising principally Electronics Manufacturing Services (EMS) companies and Original Equipment Manufacturers (OEMs) which are engaged in the production of a diverse range of products for personal computers (PC) and PC-related industries, as well as the telecommunications, office components, security, instrumentation equipment and consumer products industries.

The Group has manufactured PCBs of up to 14 layers and has developed prototypes of PCBs of up to 26 layers. The Group has also manufactured PCBs with circuit track spacing/line width from 0.003 inch to 0.006 inch. The Group is certified by Underwriters Laboratories Inc. In addition, the Group has manufactured, on a small scale./ hybrid construction of PCBs using tow different types of materials to fabricate high performance material PCBs (for example high frequency and high thermal resistance)

According to a survey conducted by an industrial magazine published by a publisher based on the US in 2000, the Group was ranged 15th amongst PCB companies in the Asia Pacific region (excluding Japan), and 52nd amongst the top 100 largest PCB companies in the world based on revenue generated in the year 2000.

The Group's manufacturing facilities are located in Shekou, Shenzhen, the PRC. As at the Latest Practicable Date, the Group had production facilities of a combined floor area of approximately55,989 sq.m, and employed over 4,000 employees. Based on the current product mix which concentrate on two to 14 layer PCBs as well as its existing facilities, the Group has a monthly production capacity of approximately 1.3 million sq.ft.

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

• The Group utilizes both engineering and technical capabilities, as well as the ability to customize manufacturing solutions, to meet the varying needs of customers and to provide value-added services.
• The Group has implemented a quality management system that is based on the requirements of ISO 9002 and QS 9000. In 1994 and 1995. Topsearch Shenzhen and Topsearch HK were respectively awarded the ISO 9002 certifications.
• With its continuous efforts, the Group has built good working relationship with many of its customers. The Group's good relationship with its customers are shown by the customer satisfaction certificates and awards received by the Group over the year, particulars of which are set forth under the paragraph headed ¡§Award and recognition¡¨ below.
• The Group has an experienced and professional management team, which contributes expertise, experience, and industry knowledge and know-how. The Group' management team comprises management staff with, on average, over 10 years of experience in the PCB industry and expertise in various areas of responsibilities.

• Reliance on the PC, PC-related and other industries;
• Fluctuations in the price of raw materials;
• Reliance on the Group's largest customers;
• Reliance on the Group's largest suppliers;
• Reliance on senior management and R & D teams;
• PRC environmental laws and regulations;

With the construction of the new production facilities, the group will continue to invest in equipment and technology to keep pace with the more advanced PCBs that the Group targets to produce. The group plans to purchase advanced machinery and equipment for high density circuitry PCBs, blind and buried via processing with automation features, fine line professing, high multiplayer count products, green PCB development technology, thin core handling, high performance materials processing used in the production.

In the light of the PRC's entry into the WTO, the Directors anticipate that more EMS companies and OEMs will expand their production facilities in the PRC and which in turn will create opportunities for the Group. With the increased production capability of the Group, the Directors will actively explore the PRC market.

Continuous improvement of customer services has always been the Group's major focus. In particular, the shortening of the time required for quick turn production of higher end multilayer products is an important area for enhancement. In order to achieve this target, the Group will further invest in its engineering resources and sales forces.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$200 million (based on the offer price HK$1.38 per share). The Group at present intends to apply the net proceeds as follows: