• Mr. Chiu Siu On - 38.22% interest
• Mr. Ng Kin Nam - 18.63% interest
• Mr. Ho Yu Hoi - 10.35% interest

Company Subsidiaries:

• Best Device Group Limited (100%)¡G investment holding
• Cyber Starpower Limited (100%)¡Ginvestment holding
• Anglo Dynamic Limited (100%)¡Ginvestment holding
• Tai Situpa Group Limited (100%)¡Ginvestment holding
• Lewiston Group Limited (100%)¡Ginvestment holding
• Integrated Precision Engineering (Thailand) Company Limited (99.99%)¡GTrading and manufacturing of precision metal components
• Integrated Precision Engineering Pte. Limited(100%)¡GDormant
• Integrated Precision Engineering Company Limited (100%)¡GTrading of precision metal components
• IPE Macao Commercial Offshore Limited(100%)¡GTrading of precision metal components
• Dongguan Koda Metal Products Company Limited(100%)¡GManufacturing of precision metal components
• Guangzhou Xing Hao Precision Metal Products Company Limited(100%)¡GManufacturing of precision metal components

The Group is principally engaged in the manufacture and sales of precision metal components used in a variety of applications. By utilizing specialized CNC machines and maintaining high level of automation in the production lines, the Group is able to manufacture metal parts and components with high degree of precision and quality that are suitable for various kinds of equipment and devices. Currently, the Group's precision metal components are principally used in HDDs, hydraulic equipment, fiber optic connectors and electronic devices. HDDs are typically used in computers and other devices that require digital storage capabilities whereas pivot cartridge components and spindle motors are two of the major components of HDDs. In particular, the Group's precision metal components for HDDs mainly include (i) pivot shafts and pivot housing which are used for the manufacture of pivot cartridges; and (ii) FDB spindle motor components. The Group's sales volume of pivot cartridge components represented approximately 23.3% and 18.5% of the global production volume of HDDs in 2001 and 2002 respectively.

For hydraulic equipment, the Group's products mainly include hydraulic precision metal components used in hydraulic field while the Group also produces precision metal components for fiber optic connectors.

With the broadening in the applications of HDDs in various kinds of consumer electronic products such as gaming consoles, mobile phones and MP3 players, the Directors believes that the growth demand for HDD precision metal components will continue to increase notwithstanding the possible saturation in the personal computer HDD market.

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

• Its in-depth knowledge of implications of high precision products quality on the consumers' sophisticated technologies;
• Its expertise in machine fabrication enabling it to customize machines to produce precision components strictly in accordance with customers' requirement;
• Its expertise in machines tolling augmentation which increase machine production capacities, thus enhance cost effectiveness.
• Its ability to provide its customers with high quality products at competitive prices on a just-in0time delivery schedule; and
• Its commitment in providing high quality after-sales services.

• Sustainability of turnover and profit margin
• Reduction in unit prices of HDD metal components
• Competition
• Reliance on major customers
• Reliance on major products
• Heavy investment in fixed assets
• Uncertainity on newly developed marekt
• Reliance on key management;
• Right to use properties in the PRC
• Credit risk
• Foreign currency
• Taxation in the PRC
• Other tax issues applicable to the Group
• Consolidation of financial results of Dongguan Koda and Xing Hao
• Dividend policy

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As the Directors believe that the group is one of the major manufacturers of pivot cartridge components in the world, they are confident that the ongoing applications of HDDs in the computer industry and their increasing applications in various kinds of consumers electronic products will have a positive impact on the performance industry of the Group.

The Directors also believe that the Group must continue to strive to reduce its industry risks and expand its market horizon by diversifying the product range of the Group. As the machineries currently utilized by the Group can be altered to manufacture precision components for a wide range of applications, the Group has been diversifying its products lines to serve customers from different manufacturing industries including hydraulic equipment and optical device manufacturer.

In order to strengthen the Group's future profitability, maintain its market share and diversify its product range, the Group intends to (i) expand the production facilities and increase the overall production range, (ii) upgrade the Group's production capabilities to meet the changing demands of its customers; (iii) diversify the product range; and (iv) develop new overseas and the PRC market.

USE OF PROCEEDS

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$67.6 million (based on the offer price HK$0.72 per share). The Group at present intends to apply the net proceeds as follows: