Group Structure

REVENUE	PROFIT AFTER TAX	SEGMENTAL ANALYSIS ON TURNOVER (For the year ended 28 February 2003)

Competitive Advantage

DOMINANT POSITION

• Supply to top HDD manufacturers
  • Excelstor;
  • Hitachi;
  • IBM*;
  • Seagate;
  • Maxtor; and
  • Western Digital

    *IBM:- IBM merged with Hitachi in April 2003

VERTICALLY INTEGRATED OPERATIONS

• Capability to carry out the entire manufacturing process for VCM plates
  • Fineblanking
  • Secondary processes
  • EN plating
    
• Better control of manufacturing processes, quality and delivery schedules

COMPETITIVE COST STRUCTURE

• Economies of scale
  • Translates into cost savings
• Labour intensive secondary processes are located in Malaysia
• Integrated VCM Manufacturing Plant in Zhuhai, PRC
  • Lower cost structure

HIGH BARRIERS TO ENTRY

• Capital intensive
• Highly skilled labour
• Strict qualification processes by HDD manufacturers
  • Requires strong engineering capabilities
  • Established track record

HIGH VOLUME CAPABILITY

• More than 29, 000 sq m of factory space

STRONG MANUFACTURING & ENGINEERING CAPABILTIES

• Manufacturing
  • More than 30 years in business
  • Strong technical knowledge of precision component manufacturing
  • Keep abreast of technology and industry requirements by investing in new equipment
  • Conducts regular process improvement
• Engineering
  • Advanced product design
  • Process and productivity improvements

STRONG CUSTOMER RELATIONSHIPS

• Established and proven relationships with key customers
  • Seagate since 1988, Maxtor since 1991
  • R&D projects with customers
• Constant exchange and consultation regarding design and production process
  • Up-to-date information on customers’ needs