Listing Date:	23 Sep 2004
Offer Price:	HK$0.28 per share
Par Value:	HK$0.01 each
No. of Shares under Placing:	96,432,000 Placing Shares
Market Capitalization:	HK$100million
Sponsor:	Somerley Limited
Chairman:	Mr. Chan Hing Yin
Fund Raising	HK$27 million

Major Shareholder:

Mr. Chan Hing Yin ¡V 70% interest

Company Subsidiaries:

Eagle Up Holdings Limited (100%): Investment holding in Hong Kong
Espco Technology Limited (100%): Trading and distribution of desktop PC components in Hong Kong

©ö¬Õ¹q¸£(²`¦`)¦³¤½¥q(100%): Manufacturing of desktop components in the PRC
Espco Computer (S) Pte Limited (100%): Trading and distribution of desktop PC components in Singapore
SPI Distribution Macao Commercial Offshore Limited (100%): Trading and distribution of desktop PC components in Macau

MARKET POTENTIAL

A positive sign on IT spending implies an expected increase in the consumption on computer hardware including desktop PCs. The number of PCs in demand and the spending on PC in the Asia Pacific region are expected to display a steady growth. In particular, due to the economic development in the PRC which has created a rising demand for PCs and related equipment.

COMPANY OVERVIEW

The Group is principally engaged in the design, manufacture and distribution of desktop PC components. Products currently designed and manufactured by the Group are VGA display cards and highly integrated motherbroads for application in desktop PCs. Substantially all the products designed and manufactured by the Group are under its own " EAGLE" brandname. Most of the Group's products are principally sold to distributors based in the PRC, Taiwan, Hong Kong Eastern Europe, Singapore, Australia and other Asia Pacific markets, and retailers and PC system integrators in Hong Kong and Singapore. The Group also provides processing services to other PC component manufacturers for their assembly of products such as VGA display cards and motherboards during the periods when the Group has spare production capacity.

The Group is also engaged in the trading of desktop PC components, such as motherbroads, VGA display cards, sound cards and chipsets. Products traded by the Group are mainly sourced from suppliers based in Taiwan and Hong Kong and are then sold to customers based in Hong Kong, Taiwan and the PRC.

COMPETITIVE ADVANTAGES

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

Its established relationship with authorized distributors of international chipset manufacturers which enables the Group to keep abreast of the latest technological developments of chipsets and to design products which are compatible with the chipsets on a timely basis;
Its experienced management team which comprises members who have knowledge and experience in the desktop PC component market, in particular, Mr. Chan, the founder and Chairman of the Company, has about 20 years of experience in the PC industry;
Its continued effort on research and development which enables the Group to design and develop products with features which are highly compatible with other major computer products in the market and are reliable in terms of performance; and
The distribution network of the Group covering markets in the PRC, Taiwan, Hong Kong, Eastern Europe, Singapore, Australia and other Asia Pacific markets, through which the Group's products

RISK FACTORS

Reliance on key executive and personnel
Reliance on authorized distributors of major chipset manufacturers;
Reliance on the PRC market
Reliance on major customers
Reliance on major suppliers
Credit Risk
Product liability risk
Long order lead time for and shortage in the supply of raw materials
Fluctuations in cost of raw materials
Stock obsolescence
Infringement of intellectual property right
Revocation of favorable tax treatments
Exchange rate risk
Lack of mortgagee consent for property occupied by the Group in Singapore

FINANCIAL RECORD

¡@	Year ended 31st Mar 2002 (HK$'000)	Year ended 31st Mar 2003 (HK$'000)	Year ended 31st Mar 2004 (HK$'000)
Turnover	393,864	324,063	479,444
Profit/(Loss) before tax	9,817	8,518	11,024
Net profit/(Loss)	8,897	7,191	10,065
Total Assets	90,656	71,196	90,187
Total Liabilities	55,638	29,608	35,699
Total equities	35,018	41,588	54,488

FUTURE PLANS

It is the objective of the Group to achieve total customer satisfaction through the provision of quality products and services to its customers and become one of the key players in the manufacture and distribution of desktop PC components such as VGA display cards and motherboards mainly in the Asia Pacific markets.

The key strategic initiatives which the Group plans to implement in the future are as follows:

To upgrade its production facilities

In order to catch up with dynamic market environment, the Group plans to upgrade its production facilities with a view to improving product quality, enhancing production efficiency and reducing the defective rate of its products. To satisfy the expected increase in demand from customers, the Directors plan to acquire additional production lines in the future.

To promote the Group's brandname "EAGLE"

The products manufactured by the Group are principally marketed and sold under its own brand name" EAGLE". The Directors intend to put more resources into marketing and advertising with a view to further building up the brandname recognition for its products.

To explore new markets and expand distribution network

The Group intends to further penetrate into major overseas markets such as Eastern Europe. The Group plans to set up subsidiaries or branch offices in selected countries in Eastern European market with a view to broadening its existing distribution channel and expanding its customer base to include desktop PC system integrators or distributors operating in these markets

To expand the research and development capability

In order to improve the performance of the VGA display cards and motherboards currently designed and manufactured by the Group and to develop new products, the Group plans to strengthen its research and development capability by recruiting more experienced staff to join its research and development team.

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TURNOVER BREAKDOWN FOR THE YEAR ENDED 31 MARCH 2004

USE OF PROCEEDS

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$19.5 million (based on the offer price HK$0.28 per share). The Group at present intends to apply the net proceeds as follows:

To upgrade the production facilities of the Group in the PRC	51.28%
To explore new markets and expand the distribution network for the Group's products	5.13%
To recruite10 staff including engineers and technicians in the PRC for the development of new products	2.56%
To promote the Group's brandname "EAGLE";	10.26%
Working capital	30.77%

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