COMPANY CREDIT REPORT

COMPANY CREDIT REPORT In reply to your enquiry on Service Mode Our Ref. Order Date Confirmation of report sent on Subject (in English) Subject (in Chinese) Address : : : : : : : Sample (China) P. C. Board Co. Limited Regular Sample 08-03-2004 18-03-2004 Sample (China) P. C. Board Co., Limited 樣本(中國)電路版有限公司 Room XXX, X/F, Sample Centre, XX Mody Road, Kowloon, Hong Kong (registered and operating) 23899XXX 27978XXX inquiry@28506682.com www.28506682.com 32.1: Manufacture of electronic valves and tubes and other electronic components Your Ref : N/A Telephone Fax E-mail Website *NACE - Code & Industry : : : : : *NACE means General Name for Economic Activities in the European Union. The NACE-code system is based on the European standard for industry classifications and was introduced in 1970. In 1990 a revised version became applicable. ALL FIGURES QUOTED IN LOCAL CURRENCY UNLESS OTHERWISE STATED Page 1 of 11 CORPORATE STRUCTURE 公司結構 The following statutory information is based on the latest microfiche of year(s) 2003 recently obtained from the Companies Registry, Hong Kong on Subject Company. Co. File Examined 09-03-2004 Legal Status Private Co Ltd Name changed from N/A Authorized Capital Paid-up Capital Last Annual Return Annual Return of no change filed for year(s) Chief Executive Company Secretary Registration No. 450XXX Date of Incorporation 05-10-1993 Date of change (s) N/A : $1,000,000 divided into 1,000,000 shares @$1: $1,000,000. : 05-10-2003 : Nil : WONG Shek XXX : WONG Shek XXX Shareholders/subscribers (as at 05-10-2003) Shareholders/subscribers ID/Passport (PPN) No. Address No. Of Shares *WONG Shek XXX ~ 王石 D.D. XXX Lot XXX, XXX (Chinese C415XXX- Sample’s Highway ‘Marina Cove’, House XX, New 6) Territories, Hong Kong. Qunxxx Technology Sample House, Blackburne Limited Highway, Road Town, Tortola, British Virgin Islands. Total: 1 999,999 ___________ 1,000,000 ======== Page 2 of 11 Directors/ID/PPN/Address (as at 05-10-2003) *Also Director(s) -TSE Chai XXX ~ 謝齊 X (Chinese A800XXX) Flat X, X/F., Block X, XXX Towers, XXX, Sai Sha Road, Ma On Shan, New Territories, Hong Kong. -WONG Sik XX 王色 X ~ (Chinese E864XXX) Flat E, 1/F., Block X, Symphony Bay, Sai Kung, New Territories, Hong Kong. HISTORY SUMMARY 歷史撮要 WONG Shek XXX transferred 350,000 shares to Qunxxx Technology Limited on 28-12-2000. TSE Chai XXX transferred 350,000 shares to Qunxxx Technology Limited on 2812-2000. Forway Enterprises Limited transferred 299,999 shares to Qunxxx Technology Limited and 1 share to WONG Shek XXX on 02-08-2001. Qunxxx Technology Limited is a company principally representing interests of WONG Shek XXX and TSE Chai XXX. Fair XXX Secretarial Limited (CI# 32XXX) resigned as Secretary on 11-01-2002 but no replacement was appointed. Subject Company was branched out from Sample P.C. Board Co Ltd (SPCB), which was established in Hong Kong since 1984. In 1991, SPCB expanded its operation and production to China and employed 100 workers. In 1993, Subject Company was formed. Upon gradual development and continuous expansion, the factory has increased its workforce to currently over 800. Further expansion has been planned and a new factory is currently under construction, which will increase the workforce to over 1,500. RELATED NEWS 相關新聞 None found As below Subject Company uses UL Standard materials and process. Its products are listed under UL File No. EXX995. In 1999, it acquired the certification of ISO 9002 (Cert No. FM XX828) Page 3 of 11 MANAGEMENT BACKGROUND INFORMATION 管理層背景 WONG Sek XXX, Managing and Marketing Director and in his 40’s. He has around 20 years of experience in the present field. One of the founders of Subject Company and is currently in charge of its business development and marketing and policymaking. He is also recorded as director and shareholder (holding 50% stake) of SPCB. His registered residential address is as above mentioned. None filed as defendant in our record. TSE Chai XXX, Operation Director and in his 40’s. He has around 18 years of experience in the present field. One of the founders of Subject Company and is currently in charge of operation and production in China. He stations in China factory for production monitoring. He is also General Manager of Dongguan Chang’An Sample XXX PCB Factory (Subject Company’s processing factory in China) and recorded as director and shareholder (holding 50% stake) of SPCB. His registered residential address is as above mentioned. None filed as defendant in our record. WONG Sik XX, Director and in his 30’s and allegedly younger brother of WONG Shek XXX. He was appointed director after year 2000 and is currently assisting SK Wong in the marketing aspect. His registered residential address is as above mentioned. None filed as defendant in our record. FINANCIAL/BANKING 財務/銀 行 Private companies in Hong Kong are not required to file or disclose their financial information for public inspection. Interviewed Peter CHAN, Accounts Manager, confirmed the details within this report and submitted the following key figures. The combined annual turnover and net profit of Subject Company and its factory SPCB Company for years ended 31st December 1999 to 2003 are as follows: Years 1999 2000 2001 2002 2003 Turnover 150,000,000 200,000,000 210,000,000 225,000,000 240,000,000 Net Profit 8,000,000 10,000,000 11,500,000 12,000,000 13,500,000 Page 4 of 11 The key figures (in RMB) of Subject Company’s wholly owned processing factory in China, Dongguan Chang’An Sample PCB Factory for year 2003 are as follows: Items Processing Fee Total Profit Total Assets Total Investors’ Equity Figures (RMB) 28,964,262.73 (year ended 31-12-2003) 1,374,122.65 (year ended 31-12-2003) 32,187,105.84 (as at 31-12-2003) 12,346,369.18 (as at 31-12-2003) Maintaining bank accounts with Asia Commercial Bank, Bank of China (Hong Kong) Limited and DBS Bank (Hong Kong) Limited. One source reported that account relationship started in 1990s. No negative implication has been reported. Total Amount outstanding at the date of the last annual return on all mortgages and charges, which should be registered with the Registrar of Companies: Nil TRADE RECORD 交易記錄 A trade survey currently conducted reveals the followings:First Services 6 Years 300,000 40,000 30 days net As agreed Second Materials/Supplies 8 Years 2,500,000 1,500,000 60 days net Within terms Type of supplies Time Known Highest Credit Outstanding Balance Terms Pay Record : : : : : : TOTAL DEBT SCANNER (TDS) 迪陶債案搜查 TOTAL DEBT SCANNER (TDS) reveals if a Subject has been listed as debtor in our database, and is subject to the Code of Practice on Consumer Credit Data issued by the Office of the Privacy Commissioner for Personal Data, Hong Kong. - Under Subject Company None found As below - Under Subject Company’s sole proprietor, partner, director/shareholder/ subsidiary/associate/related company None found As below Page 5 of 11 Overall trade reputation: Poor Average (Satisfactory) Good Excellent PUBLIC FILINGS 公共檔案 Charges/mortgages: -None filed as up to 09-03-2004. TOTAL WRIT SCANNER (TWS) 迪陶訴訟搜查 TOTAL WRIT SCANNER reveals if Subject Company and related parties have been listed as defendant, plaintiff, in liquidation or bankruptcy in our database, and is subject to Code of Practice On Consumer Credit Data issued by the Office of the Privacy Commissioner for Personal Data, Hong Kong. Note: Only the latest 50 writ records listed if number of records over 50 - Under Subject Company None found As plaintiff As defendant ACTION_NUM DATE DEFENDANT PLAINTIFF CAUSE CURRENCY AMOUNT S008XX 26/01/1999 XXX (OEM) LTD SAMPLE P.C. AMOUNT HKD 225,100.00 BOARD CO LTD DUE S094XX 16/09/1999 XXX (OEM) LTD SAMPLE P.C. AMOUNT HKD 508,480.00 BOARD CO LTD DUE - Under Subject Company’s sole proprietor, partner, director, shareholder, subsidiary, associate or related company None found As defendant Note: Civil claims, if any, are filed as the result of disputes of a commercial nature. The defendant is not liable nor the plaintiff eligible to the claim until judgement is obtained from the relevant court while it is not open for public inspection at present. Latest writ copies (statement of claims) may be secured at a nominal cost through TCM. OPERATION & ACTIVITIES 運作及業務範圍 Subject Company is engaged in the manufacture and sale of high density single and double-sided printed circuit boards and multi-layer boards. It has concentrated in developing conductive carbon printing, high-frequency circuits, and a series of computer product PCBs. All manufacturing operations have been moved to its factory Dongguan Chang’An Sample PCB Factory located at Chang’An Town, Dongguan City, Guangdong, Province PR China with Tel; (0769) XXXX 368 and fax (0769) XXXX 425. It has a Page 6 of 11 workforce of over 800. Among them, It has over 30 engineers and 30 production management staff, both hired from Hong Kong and within mainland China. Subject Company’s products and services are as follows: Prototype Fabrication Subject Company is currently providing PCB prototyping service in China, Hong Kong and overseas. It provides PCB Prototypes for: -Single Sided Circuit Board -Double Sided Circuit Board -Multi-layer (up to 6 layers) -Silver through Hole PCB Products Category -H.A.L -Nickel and Gold plating -Copper -Carbon print -Carbon and silver through hole -Preflax and Entek treatment Delivery -Single and Double Sided Plated through hole delivery time (Ex-factory): -Standard 5 working days -Priority 3 working days -Superfast 36 hours, almost the Fastest prototyping service in Hong Kong and China -Multi-layer delivery time: Standard 2 weeks Engineering Data -Gerber Files -Aperture File (D-code) -CNC Drill File -Finishing Hole Size Table -Mechanical Out Line Drawing -Readme text file (ASCII text format) Manufacturing Capabilities Minimum PAD Size Minimum Soldermask Clearance Minimum Soldermask Coverage Line width reduce after etching Space between two plating clamps Maximum panel length 0.5mm more than hole size 0.3 mm more than conduct pad 0.1 mm more than line edge 0.02 mm 5" (127 mm) 400 mm Page 7 of 11 Minimum panel length Maximum panel width Minimum panel width 160 mm 350 mm 100 mm Minimum distance between copper trace and panel side Minimum spacing between copper trace and outline Minimum punching hole size Minimum punching hole spacing Minimum distance between punching hole edge and panel side Minimum distance between punching pin hole and panel side Minimum Plating Current Minimum V-cut Length Minimum V-cut Width Minimum V-cut Spacing Minimum distance from outline to panel side Minimum carbon finger width / Spacing Double Side PCB Production Layers Base Material Material Thickness Copper Thickness Minimum Line Width Minimum Line Spacing Minimum Drilling Size Maximum Hole Size Minimum Soldermask Size Minimum PAD Size Maximum Plating Minimum Space between two plating clamps Minimum Plating Current Minium V-cut space Silk-printing Size max Space between trace and outline Minimum Carbon Circuit width / Space Minimum distance between marking 0.5 mm 0.5 mm 0.7 mm 1.5 mm 1.0 mm 1.25 mm 50 A 100 mm 30 mm 5-400 mm (Manual), 2-400 mm (N.C. V-cut) 2.0 mm (NPTD), 10 mm (HAL/PTD) 0.35 mm 2-6 Layers FR1, FR2, FR3, FR4, CEM-3 0.4m-3.2 mm 0.5 Oz, 1 Oz, 2 Oz, 3Oz, 4 Oz 0.127 mm 0.127 mm 0.3 mm 6.5 mm 0.15 mm 0.2mm more than hole size 24" (610 mm) 5" (127 mm) 50 A 1.0 mm 660 x 440 mm 0.5 mm 0.35 mm 0.15 mm Page 8 of 11 and hole side Distance between copper foil and outer-ring Overcoat Margin (for single side only) 0.25 mm 0.15 - 0.25 mm Raw materials, supplies and services purchased from China on COD and credit of 30 to 90 days net and also imported from Taiwan on open account and TT basis. Sales made locally and to China on COD & credit of 30 to 60 days basis and also exported to USA, Europe, Japan, Korea and Singapore upon open account, COD, TT and L/C basis. Owning its office at the captioned address, which is at a commercial building. Employing a staff of 20 locally and over 800 workers in China. TOTAL PROPERTY OWNERSHIP SEARCH (TPOS) 迪陶業權搜查 TPOS* is a unique tool to indicate if Subject Company, its sole proprietor, partner, director and shareholder has been recorded as owner in any property transaction and/or ownership since 1996. - Under Subject Company None found As below TPOS indicates Subject Company owns its registered and operating address at Room XXX, X/F, Sample Centre, XX Mody Road, Kowloon, Hong Kong, which was purchased for $2,500,000 on 02-10-1998 and mortgaged to Bank of East Asia on 04-11-1998. Under Subject Company’s sole proprietor, partner, director or shareholder None found As below TPOS indicates WONG Sik XX owns Flat E, 1/F., Block X, Symphony Bay, Sai Kung, New Territories, Hong Kong, which was purchased or $3,180,000 on 22-021998. TPOS indicates TSE Chai XXX previously owned Flat X, X/F., Block X, XXX Towers, XXX, Sai Sha Road, Ma On Shan, New Territories, Hong Kong, which was purchased for $3,300,000 on 11-11-1997. It was sold to NG XX Chu for $1,680,000 on 24-06-2002. SUBSIDIARIES, ASSSOCIATES & RELATED COMPANIES 附屬，聯營及相關公司 Subsidiaries N/A Nature of Business N/A Recorded Corporate Structure N/A Page 9 of 11 Associates Sample Trading Ltd. Nature of Business Trading of PCB Recorded Corporate Structure N/A Related companies N/A Nature of Business N/A Recorded Corporate Structure N/A SUMMARY 總括 Subject Company is a well established and satisfactorily growing PCB manufacturer and seller possesses sufficient operational experience, reasonable backings and acceptable market base to meet its normal commitment. TOTAL CREDIT'S APPRAISAL 迪陶信用評估: TCA3+ Explanatory notes on Total Credit's Appraisal (TCA) TCA1 TCA2 TCA3+ TCA3 TCA3TCA4 TCA5 Strongly Recommended Recommended Borderline + Borderline Borderline Caution Unacceptable Credit or business dealings strongly recommended. Credit or business dealings recommended. Credit or business dealings recommended supported with a regular monitoring basis. Credit or business dealings appear acceptable while should be supported with a regular monitoring basis. Credit or business dealings should be considered upon a close-watch and regular monitoring basis. Credit or business dealings are advised upon a close-watch and preferably under secured basis. Credit or business dealings are not advised whereas business dealings, if necessary, should only be upon secured basis. Credit or business dealings are not advised due to bankrupt, liquidation, dissolution, deregistration and/or business cessation. NR is given where there is insufficient information to facilitate rating. However, it is not to be construed as unfavourable. TCA6 NR Bankrupt, Liquidation, Deregistration, Dissolution & Business Cessation No rating Note: The credit appraisal provides an assessment of the credit worthiness of a company. It takes into account all significant elements of credit including: company history, management background & credit record, financial position, payment history & credit record, business performance, overall market conditions, market trend and reputation of the company. Page 10 of 11 Major Economic Indicators Population, End-year (million) Gross Domestic Products (US$ billion) Real GDP Growth (%) GDP Per Capita (US$) Inflation (% Change in Composite CPI) Unemployment Rate (%) 2001 6.76 162.8 +0.6 24,200 -1.6 6.2 2002 6.79 161.5 +2.3 23,800 -3.0 7.2 2003 6.81 158.3 +3.3 23,300 -2.6 7.9 Latest a 6.81 158.3 b +6.0 b 23,700 -1.5 7.3 c d a 2003; b Forecast for 2004; c January 2004; d 3-month moving average ended January 2004 Merchandise Trade Performance Total Exports Domestic Exports Re-exports Imports Total Trade Trade Balance 2002 2003 January 2004 US$ billion Growth % US$ billion Growth % US$ billion Growth % 200.1 +5.4 223.4 +11.7 17.3 +0.2 16.8 -14.7 15.6 -7.1 1.1 -13.8 183.3 +7.7 207.8 +13.4 16.3 +1.3 207.6 +3.3 231.5 +11.5 17.2 +0.9 407.7 +4.3 454.9 +11.6 34.6 +0.6 -7.6 -8.1 0.1 - Service Trade Performance Exports Imports Total Trade Trade Balance 2001 2002 2003 US$ billion Growth % US$ billion Growth % US$ billion Growth % 39.4 +1.9 43.3 +9.8 44.9 +3.7 24.7 +0.5 24.8 +0.5 24.3 -2.2 64.1 +1.4 68.1 +6.2 69.2 +1.5 14.8 18.5 20.7 - Private & Confidential The foregoing report is furnished in strict confidence at your request by Total Credit Management Services H.K. Ltd. as your agent, for your exclusive use as an aid in considering credit, marketing, insurance and other business decisions and for no other purpose. The information shall not be revealed or made known to the subject or any other person, firm or corporation. Total Credit Management Services H.K. Ltd. does not warrant the correctness of information and you will be liable to indemnify Total Credit Management Services H.K. Ltd. for any loss, damage or expense, occasioned by your breach or nonobservance of any of these conditions. Specific inquires regarding content are welcome. ***END OF REPORT*** KC/KC Page 11 of 11