STRONG DESIGN-IN CAPABILITIES

Our strong design-in capabilities have allowed us to implement a demand creation model. Instead of reacting to the component requirements of our customers, our field application and design and development teams pro-actively create demand for the components that we distribute. This is achieved by making recommendations to customers at component level or marketing to customers reference designs that we have developed. If our customers implement our recommendations or reference designs, we will supply the components required to manufacture their products, securing a stream of future revenue.

ESTABLISHED PRESENCE IN THE GROWING PRC MARKET

With our 8 subsidiaries and 8 representative offices in PRC (including Hong Kong), we have an established presence in the growing PRC market. Revenue from PRC (including Hong Kong) accounted for 48.3% and 60.9% of our total turnover for the year ended 31 December 2002 and the first 6 months ended 30 June 2003 respectively. Our revenue contribution generated from PRC (including Hong Kong) has achieved a compounded annual growth rate of approximately 19% for the last 3 financial years.

EXPANDING DISTRIBUTION NETWORK IN INDIA

We are of the opinion that the Indian market has good growth potential, hence we have been increasing our presence in the growing Indian market. We have set up 7 representative offices in India since 1995. Although revenue from India accounted for approximately 7% of our total turnover for the year ended 31 December 2002, we believe that the contribution of our growing network in India to our Group's revenue will increase.

QUALIFIED AND EXPERIENCED MANAGEMENT TEAM

Our experienced management team includes our Group CEO and Chairman, Mr Albert Phuay Yong Hen, our Chief Operating Officer of the ESHK Group, Mr David Kok Fat Keung, and Managing Director of LES Group, Mr Alan Kwan Wai Loen. Each of them possesses more than 18 years of experience in the electronics industry. Their product knowledge, business network and strong management capabilities are vital to our continued growth and future development.

ESTABLISHED RELATIONSHIPS WITH OUR PRINCIPALS

We have enjoyed good working relationships with our principals as a result of our ability to provide valueadded services and promote their products in the various industries that we serve. In order to build up personalised and close relationships with our principals, each of our product marketing personnel is assigned to manage a specific portfolio of principals.

DIVERSIFIED CUSTOMER BASE

We have established a diversified customer base made up of approximately 500 customers from a variety of industries, including telecommunications, consumer electronics, industrial and instrumentation electronics, automotive, computers and computer peripherals. Our customer base spans many countries, including Singapore, PRC (including Hong Kong), Malaysia, Thailand, India, Australia and the Philippines.

WIDE DISTRIBUTION NETWORK AND PRODUCT RANGE

In order to provide efficient and prompt services to customers, we are supported by subsidiaries and representative offices in Singapore, PRC (including Hong Kong), Malaysia, Thailand, India, Australia and the Philippines. Our subsidiaries and representative offices are managed by locals who have relevant experience and are familiar with the electronics industry in the respective markets.

We carry a wide range of products from various principals to meet the diverse needs of customers in different sectors of the electronics industry.