Major Shareholder:

• Taiwan Mayer ¡V 75.0% interest

Company Subsidiaries:

• Guangzhou Mayer (77.52%): Processing and manufacture of steel sheet and pipe products

The Group is principally engaged in the processing an manufacture of different kinds of steel sheet and steel pipes which are used by its customers in the manufacture of 3C products, sports equipment, as well as spare parts of household appliances and motor vehicles. The Group's office and production facilities are strategically located in Yonghe Economic district, Guangzhou Province, the PRC with a total production area of 15,000 sq.m and an aggregate production capacity of 240,000 tonnes of steel products per annum.

The Group's production plant is strategically located in the Yonghe Economic Zone, Guangzhou, Guangdong Province, the PRC. Apart from the 50% income tax exemption, the Group also enjoys quick access to most of the locations of the Pearl River Delta by establishing its production plant in the Yonghe Economic Zone

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

• Good strategic location enables the Group to achieve speedy and responsive delivery of quality products
• High product quality
• Reputable clientele
• Diversified customer base
• Stable supply of high quality steel coils
• Large product range
• Preferential income tax rate

• Reliance on Taiwan Mayer during the Track Record Period
• Reliance on key management staff
• Reliance on short term bank borrowings
• Fluctuations in the raw material costs
• Reliance on major supplier
• Future demand for 3C products
• Potential expiration of preferential income tax

The Group has realized a stable growth in its turnover during the Track Record Period. The Directors believe that the Group is one of the recognized manufacture of high quality steel sheets and steel pipes in the Pearl River Delta. In order to maintain its competitiveness and achieve further growth, the Group plans to launch the third phase of expansion of its production plant currently located in Yonghe Economic zone, Guangzhou, Guangdong Province, the PRC.

In order to improve information sharing between departments of the Group and thus allow quicker assessment and analysis of the Group's financial and operation data by the Group's management, the Group intends to upgrade its information system, for example, computer hardware, including, but not limited to monitors, central processing units and printers.

While the Group will continue to maintain a close business relationship with the existing customers in the Pearl River Delta, the Group plans to extend its geographical reach to the eastern part of China and seeks opportunities to penetrate into major cities such as Shanghai and Suzhou, the PRC. Further to the establishment of a representative office in Shanghai in 2001, the Group intends to set up representative offices and /or production plants in other potential market. From time to time, the directors will assess the market demand and, its necessary, implement expansion plans to expand the Group's production capacity.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$47.0 million (based on the offer price HK$0.55 per share). The Group at present intends to apply the net proceeds as follows: