Major Shareholder:

• Mr. Lau Luen Hung, Thomas ¡V 25.89% interest
• Mr. Tsang Chiu Wai ¡V 25.56% interest
• Mr. Kwok Cheuk Luen, Trevor ¡V 12.73% interest

Company Subsidiaries:

• UMCL (100%): Sale of aluminum, zinc and magnesium products
• United HK (10%): Provision of administration
• United Malaysia (100%): Carrying and inspection and other quality assurance
• Dongguan United (100%): Die casting and secondary finishing of aluminum products
• Everhope (100%): Sale of aluminum, zinc and magnesium products

The Group is engaged principally in the manufacture and sale of aluminum and zinc die casting parts. As part of the integrated services provide to its die casting customer, the Group is also engaged in the sale of screw machined brass parts and had been engaged in the trading of other products such as computer cases and plastic products which were not manufactured by the Group up to May 2002. All manufacturing and processing activities of the Group are carried out in Zhangmutou, Dongguan, and the PRC.

As parts of the integrated services provided to its die casting customers, the Group is also engaged in the sale of screw machined brass parts, which include shafts, pins, couplings, joints and bushings produced by screw machines. The Group purchases unprocessed screw machined brass parts from suppliers and carried out secondary finishing process on these purchased parts before on selling them to customers.

Through the acquisition of Everhope in May 2002, the Group recommenced the zinc die casting manufacturing and processing operation at Dongguan Applied Magnesium Factory, which is operated under a processing agreement entered into between Everhope and Dongguan manufacturing and processing operations.

Die casting is one of the metal working processes employed by many manufacturing industries such as automobile, electronics and houseware industries. The Group's die casting production process consists of three major processes; the die design and construction process, the primary manufacturing process and the secondary finishing process. All the products manufactured, processed and traded by the Group are tailor-made parts and are not final products that are ready for use.

• Reliance on processing arrangement;
• Registration of certain tenancy agreements;
• Expiration of business license of Dongguan United;
• Reliance on key management;
• Ability to meet customers requirement;

To further expand the aluminum, zinc and magnesium die casting manufacturing business, the Group intends to acquire a number of production machinery and equipment for both the primary manufacturing process such as die casting machines and furnaces for zinc, aluminum and magnesium die casting, in particular, the Group also intends to acquire a number of the casting machines especially for magnesium die casting.

In order to strengthen the Group's sales and marketing power for distributing its brand image and obtaining more sales contracts, the Group intends to expand and enhance its sales and marketing team by the additional of high caliber sales personnel and provision of training to existing sales staff. The Group will also strengthen its business relationships with existing customers for continuous and future business opportunities whilst coordinating closely with them and identifying their needs in order to generate new sales contracts.

As at the Latest Practicable Date, the entire Group's finished parts are ultimately required to be exported overseas. It is the Group's intention to explore sales opportunities in the PRC domestic market, through setting up a new factory premise in the PRC. In this connection, the Group also intends to employ more experienced sales personnel and other experienced personnel and provide training in order to strengthen the sales power of the Group. Since the PRC market is a relatively new market to the Group. The Directors believe that a good sales network is essential.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$42.1 million (based on the offer price HK$0.93 per share). The Group at present intends to apply the net proceeds as follows: