Major Shareholder:

• Mr. Chu Chien Tung - 23.76% interest
• Mr. Chu Chick Kei - 23.76% interest
• Mr. Chu Siu Chun - 23.76% interest

Company Subsidiaries:

• Tungda Electrical (100%): Trading of lighting source products
• Light Power (100%): Manufacture and trading of lighting source products

The Group is engaged principally in the trading of energy saving lighting source products manufacture by other manufacturers in Europe, Hong Kong and the PRC. Based on the foundation of its trading business, the Group is also engaged in the R&D, manufacture and distribution of various lighting source products under its won brands, amongst which the induction lamp is the fastest growing product in terms of its sales and profit contribution .

Since the commercialization of induction lamps in November 2001, the Group has successfully marketed 96,000 induction lamps to Europe, Southeast Asia and the PRC as of the Latest Practicable Date. No product returns nor material complaints due to technical fault or failure in meeting product specification have been brought to the attention of the Group. Currently, the Group has a production capacity of 20,000 induction lamps over month. The Directors intend to increase its production capacity to satisfy the growing demand following the completion of the Placing.

Among the Group's products, all induction lamps are manufactured by the Group. About 7.5% and 1.2% of the Group's sales of compact fluorescent lamps were attributable to the sale of compact fluorescent lamps manufactured by the group for each of the two years ended 31st March 2002 respectively; while the remaining were attributable to the sale of compact fluorescent lamps manufactured by the Group's sub-contractors and other manufacturers. The manufacture of the Group's halogen lamps, high intensity discharge lamps. Fluorescent lamps and incandescent lamps are sub-contracted by other independent manufacturers. The Group also distributes these lighting source products manufactured by other manufacturers.

• The existing lighting source market is being dominated by the conventional lighting source products on which the Gorup intends to gradually replace most of them by bringing the customers or end users with value-added, quality and cost-efficient products.
• Due to the necessity of lighting source products, the lighting source market is well established and is under consistent growth. The Directors believe that the Group may identify a huge number of potential customers by targeting only the replacement market.
• The PRC's lighting source market recorded a consistent growth in the import and export markets over the past years and the Directors believe that such growth can be sustained in the future.
• The advocacy of energy-saving technologies and the environmental protection concern is one of the recommended projects of China's Tenth Five-Year's plans and the highlighted issue of many countries and hence benefits the development of the Group's lighting source products.

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

• The Group possesses a proven technology and production capacity of the induction lamp, an innovative and energy-saving lighting source product that applies unique ¡§electrodeless¡¨ lighting technology.
• The Group's dedicated management team has extensive experience and technical expertise in the development, marketing and distribution of lighting source technologies and products.
• The Group's quality standard on safety and reliability enhances customers' satisfaction and product recognition;
• The Group has established an effective distribution channel in the PRC and Hong Kong wth export presence in Europe and Middle East.

• The Group's technical know how and mechanic application on the induction lamps or any of its existing or new product may be plagiarized or infringed by other third parties;
• Development of the Group's new products as set up in the business plan may not be materialized and the effectiveness and marketability of these new products are not certain;
• The Group's products and technologies may be replaced by other invention;
• The Group's high profit margin in the sale of induction lamps may not be sustainable.

The Group's principal business objective is to become a premier lighting source providers with quality, value added and cost efficient products. The Group intends to adopt the following business strategies to achieve the said objectives;

• development and enhancement of new lighting source technologies and products;
• strengthening of R&D collaboration wth Fudan University;
• expansion of manufacturing capacity and capability;
• establishment and expansion of sales and distribution network in the PRC and the overseas markets; and
• enhancement of brand recognition and public awareness.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$52.2 million (based on the offer price HK$0.29 per share being the midpoint of the offer price). The Group at present intends to apply the net proceeds as follows: