Major Shareholder:

• Mr. Wong Shu Wing ¡V 51.0% interest
• Mr. Leung Yu Ming ¡V 15.0% interest

Company Subsidiaries:

• Kingful Investment (100%): Property investment
• Tech-Link (100%): Distribution of semiconductors
• Hoover (99.12%): Distribution of semiconductors
• Systech (100%): Distribution of semiconductors
• Sunwave Development (99.09%): Distribution of semiconductors
• Apson Electonic (99.17%): Provision of electronic turnkey device solutions
• Rawason (100%): Provision of electronic turnkey device solutions and investment holdings
• JTY (100%): Development of embedded software and electronic turnkey device solutions
• Sun Horse (100%): Distribution of semiconductors

The Group is an established distributor of semiconductor for consumer electronic and telecommunication products, computers and peripheral devices for customers in Hong Kong and the PRC. In addition to its semiconductors distribution business, the Group also engages in the development and provision of electronic turnkey device for customers in Hong Kong and the PRC.

The Group's principal place of operations is located in Hong Kong. The design, engineering and development centre for the Group is located in Shenzhen, the PRC. Save as technical fee chared against the subsidiaries of the Grou which are engaged in the business of distributing semiconductors with proprietary software and the business of development and provision of electronic turnkey device solutions in Hong Kong by JTV, neither production nor external sales were effected in the PRC during the Track Reocd Period. In addition, the Group's sales team also has a representative office in Shanghai, the PRC to liaise with existing and potential customers and collect customer feedbacks.

At present, the Group is a non-exclusive distributor of about 15 semiconductor supplier in Hong Kong and the PRC, Taiwan, including recognized semiconductor suppliers such as Holtek Semiconductor (Hong Kong) Limited and Realtek Semiconductor Corporation. The Group has established a clientele of over 600 customers for its semiconductor distribution business, including recognized manufacturers and providers of consumer electronic and telecommunication products, computers and peripheral devices in Hong Kong and the PRC.

The Group distributes two main categorizes of semiconductors to customers in Hong Kong and the PRC, namely standardized semiconductors, which are embedded with basic software provided by the Group's suppliers, and customized semiconductors, which are embedded with the Group's proprietary software. The Group also engages in the development and provision of electronic turnkey device solutions for customers in Hong Kong and the PRC.

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

• Experienced and technical sales teams;
• Dedicated senior management with extensive experience in electronic engineering and software development;
• Semiconductor expertise;
• Strong distribution sales network;
• Provision of wide range of semiconductor;
• Provision of customized semiconductors;
• Development centre in the PRC;
• Corporate governance;

• Reliance on key management staff;
• Reliance on suppliers;
• Reliance on major customers;
• Strong competition;
• Rapid technology changes;

Following the accession of the PRC into the WTO and the resulting trade liberalization in the PRC, the Directors believe that demand for semiconductors in the PRC will continue to grow. In order to capture this potential business opportunity, the Group plans to strengthen the marketing capability by recruiting additional sales and marketing staff or setting up other representative offices in certain major cities of the PRC such as Beijing, Chongqing and Guangzhou with a view to market the Group's product selections.

The Group intends to capture the vast business potentials in the consumer electronics and telecom equipment markets in the PRC by further promoting its electronic turnkey device solutions to markers and distributors of household electrical appliances. In addition, capitalizing on the Group's success in the development and provision of electronic turnkey device solutions for targeted product segments. Int this connection, the group plans to conduct development on the two-targeted product segment, namely information appliances and GPS products.

The success of the Group is to a significant extent, attributable to the strong engineering and development support which enable the Group to design and develop high quality and technological advanced products which can successfully compete with other products offered in the market. The Group intends to continue its emphasis on up-keeping and improving its engineering and development capability by recruiting additional experienced engineering and development staff and acquiring additional advance computers and equipment.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$22.0 million (based on the offer price HK$0.5 per share). The Group at present intends to apply the net proceeds as follows: