Company Details

Key Facts

Credit Rating & Risk Analysis

Adverse Data

Financial Summary  (Currency: U.S. $'s)

Management & Products

Int´l Trade Activity  (Currency: U.S. $'s)

In-depth Report Details

SIC PRODUCT CLASSIFICATION & ACTIVITY

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

DETAILED PRODUCT CLASSIFICATION & ACTIVITY

OWNERSHIP

COMPANY MANAGEMENT

FINANCIALS SUMMARY (Currency: U.S. $'s)

CREDIT RATING, FINANCIAL & LEGAL STATUS

ACP's Credit risk assessment is gauged on 12 key business factors.

Each factor is assigned a rating and the total is aggregated and weighed in consideration of any other influencing

factorsrelevant to the final assessment.

These factors include :

*Financial History*
==============
1995 - Invested heavily into two other subsidiaries in Taiwan. The levels of investment into the two other
          subsidiaries represented a total of US$52.8 million.
2000 - Recorded an increase of 33.79% on its total turnover.
        - The turnover of its drink division reached NT$3,774 million, up 50% compared to that of 1999.
        - CDS's turnover reached NT$415 million, a 5.5% growth from 1999.
2001 - Its order fill-rate hit 93% and handling costs per case was reduced by 30%.

*Financials*
===========
Balance Sheet
Currency : NT$Thousand (Except Number of Shares and Par Value)
                                                  
                                                                                      31 December, 2002          31 December, 2001
                                                                                      -----------------------------         -----------------------------
ASSETS
Current Assets
     Cash and cash equivalents                                                   88,396                                 60,433
     Investments in mutual funds - net                                          23,030                                   9,920
     Notes receivable and accounts receivables -
       net of allowance for doubtful accounts of
       NT$5,819 (US$185) in 2002                                            1,180,484                               698,902
     Inventories - net                                                                  583,822                               846,521
     Receivables from related parties                                           154,590                               138,069
     Receivables from principals                                                   93,493                               119,263
     Prepaid expenses and other current assets                          226,883                                 53,404
     Total current assets                                                         2,350,698                            1,926,512
     Investments in shares of stock - net                                     561,234                               487,934
     Properties
     Cost
       Land                                                                                139,560                               141,456
       Buildings and equipment                                                    364,477                               356,777
       Office equipment                                                               332,938                               249,535
       Vehicles                                                                             48,137                                45,430
       Total cost                                                                         885,112                               793,198
     Less - accumulated depreciation                                          241,838                                205,221
     Construction in progress                                                        18,971                                 13,337
     Prepayments for buildings and equipment                                 1,858                                         -
     Net Properties                                                                     664,103                               601,314
     Intangible Assets
     Franchises                                                                          179,301                                         -
     Deferred charges                                                                   22,003                                         -
    Total intangible assets                                                          201,304                                         -                 
    Other Assets                                                                         35,233                                  24,219
    Total Assets                                                                     3,812,572                              3,039,979

LIABILITIES & STOCKHOLDERS' EQUITY
Current Assets                                                   
     Short-term bank loans                                                         274,000                                  94,520
     Commercial papers                                                             319,359                                          -
     Notes payable and accounts payable                                    397,879                                444,894
     Accrued expenses liabilities                                                 124,201                                  75,079
     Income tax payable                                                                1,964                                          -
     Other current liabilities                                                          59,458                                 126,067
     Total current liabilities                                                       1,176,861                                 740,560
     Long-term liabilities                                                             131,000                                   22,000
     Accrued pension cost                                                             4,142                                     3,348
     Other labilities                                                                     146,247                                           -
     Total liabilities                                                                  1,458,250                                 765,908
     Stockholders' equity                                       
     Capital stock - NT$10 par value
       Authorized - 250,000 thousand shares
       Issued - 162,000 thousand shares                                    1,620,000                              1,620,000
     Capital surplus                          
       Paid-in capital in excess of par value                                   570,249                                 570,249
       Gain on disposal of properties                                                1,908                                     1,144
       From long-term stock investments                                              45                                            -
       Total capital surplus                                                           572,202                                 571,393
     Retained earnings
       Legal reserve                                                                       37,568                                  37,568
       Unappropriated earnings                                                     126,130                                   50,911
       Total retained earnings                                                       163,698                                   88,479
     Unrealized loss on long-term stock investments                       (1,287)                                   (5,801)
     Cumulative translation adjustments                                            (291)                                           -
     Total stockholders' equity                                                   2,354,322                               2,274,071
     Total liabilities and stockholders' equity                               3,812,572                               3,039,979                       
INCOME STATEMENTS
     Product sales - net of sales returns and
     allowance of NT$244,211 (US$7,764) in 2002
     and NT$224,847 in 2001                                                     5,923,774                               4,332,299
     Central distribution service revenues                                       415,442                                  393,872
     Commission revenues                                                        6,369,023                                4,760,570
     Cost of product sales and costs of revenues
     from central distribution service                                            5,567,524                               3,983,496
     Gross Profit                                                                          801,499                                  777,074
     Operating Expenses                                       
     Sales and marketing                                                              530,186                                 645,346             
     General and administrative                                                     141,115                                  123,330
     Income from operations                                                          130,198                                     8,398
     Non-operating income                                                         
     Interest                                                                                   13,318                                     7,683
     Investment income recognized under 
     equity method                                                                         12,058                                            -
     Gain on disposal of investments in mutual
     funds                                                                                        2,787                                           -                    
     Others                                                                                    26,093                                   13,003
     Total non-operating income                                                       54,256                                   25,040
     Non-operating expenses                                       
     Provision for decline in value of inventories                                  48,614                                   32,325
     Foreign exchange losses - net                                                   22,705                                    4,156
     Interest                                                                                    11,790                                  24,826
     Investment loss recognized under equity
     method                                                                                             -                                  17,344
     Other                                                                                         2,751                                    8,762
     Total non-operating expenses                                                     85,860                                  87,413
     Income (loss) before income tax                                                 98,594                                 (53,975)
     Income tax                                                                               22,606                                   (4,531)
     Net income (loss)                                                                     75,988                                  (49,444)         


*Company Registration*
====================
License number : 2200000025
Issuing authority: Ministry of Economic Affairs (MOEA)
Type of license  : Manufacturing, assembly, importation of electronic components and assembly.

*Industry Ranking*
================
Considered to be one of Taiwan's largest PCB assemblers.

*Accountants*
============
T NXSONIC & CO

*Auditors*
=========
T NX SONIC & CO

*Company Name*
=============
Incorporated as       : PROPSEROUXX ELECTRICAL CORP
Date of Incorporation: 10 October, 1994
Changed Name to    : ZEN-TEK ELECTRONICS LTD
Date of Change        : August 1996

*Financial Structure*
================
Overview of  Turnover as per Division:
---------------------------------------------------
PCB Division
Year                    Turnover (NT$)              Growth (%)
------                    ---------------------              ---------------
2000                                1,678,311                   48
2001                                2,517,312                   50
2002                                3,774,276                   50

Components Division
Year                   Turnover (NT$)              Growth (%)
-------                  ---------------------              ---------------
2000                               2,471,434                      7
2001                               1,849,386                   -25
2002                               1,863,765                      8

CDS Division
Year                    Turnover (NT$)              Growth (%)
-------                   ---------------------              ---------------
2000                                   285,263                    52
2001                                   393,872                    38
2002                                   415,442                    5.5

BANKS REFERENCES

LOCAL BRANCHES & MANAGEMENT

PRODUCT, TECHNOLOGY, SERVICES DESCRIPTION

*Main Products & Services*
======================
Specializing in two main areas of work:
1. Import of computer components.
2. Production of multi-layer printed circuit boards incorporating some of the raw materials imported.

*Detailed Product Specifications*
==========================
Characteristics of products include:
- Layers include : 2-8 layers
- PCB's with hot air levelling process
- PCB's with electroless nickel/gold plating
- PCB's with carbon ink or with peelable solder masks
- Epoxy or photimageable solder masks

The main use of the IC's are for optimum performance under extreme temperatures.
Application : weapons control panel on indigenous fighter jets.

*Technologies Developed and/or Acquired*
===================================
ZEN-TEK implements Q.C. testing throughout the manufacturing process. All testing jigs & software are produced by the in-house engineering department.

*Quality Certification*
=================
Type of Certification: ISO 9002
Date                      : January 1994
Issuing authority     : SGS

*Product/brand/logo Licensing*
=======================
Type of Licensing: Technology know-how
Licensor             : SEIKOX ELECTRONICS LTD - Indonesia
Date                  : June,1999
Details of license: Produce and incorporated patented range of SEIKOX components in PCB's manufactured and sold to assemblers of plasma display units.

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

*Factories, Size & Locations*
======================
Factory 1
------------
Type of building: 2-storey industrial
Building size    : 25,000 sq. meters
Land size         : 80,000 sq meters
Location          : Semi-industrial suburb of Hsinchu.

Factory 2
-------------
Type of building: Single storey semi-residential building
Building size    : 8,000 sq meters.
Land Size        : Incorporated in the estim. land size above.
Location          : Same location as above.

*Production Capacity*
==================
Based on standard multi-layer PCB's, the factory is currently able to produce 200,000 boards per month based on two 8 hour production shifts per day.

ORGANIZATION STRUCTURE

*Corporate & Organization Structure*
==============================

                                                             Board of Directors                                                                                    
                                                                           |                                                                                                    
                                                                           |   
                                                                   Chairman                                                                                                 
                                                                           |                                                     
                                                                           |    
                                                                           |                                                                              
                                                              General Manager                                                                                             
                                                                           |    
                                                                           |                                                                           
                                      -----------------------------------------------------------------                                                                
                                     |                          |                               |                      |                                                                   
                             Production         Personnel            Marketing       Finance
                            Department         Department         Department     Department
                                    |                                                         |                                                              
                             Includes :                                          Includes :                                                                                   
                           Manufacturing                                      Sales                                                                                          
                           Quality Control                                    Marketing

*Company History*
===============
1994  -  Started operation of Hsin-i Dist branch office.
1995  -  Started operation of Shihlin Dist branch office.
2000  -  Affiliate with TRENDECT (CHINA) CO

*Key Personnel*
==============
Mr. Louis Ming-li Chen  (Also known as Ah ming Chen)
Founder                      : Sole founder
Age                            : 55 years
Education                   : Bachelor of Science at University of CKSC
Qualification                : Engineer, Architect
Work experience         : 20 years
Responsibilities           : Daily management of the firm and legal responsibility of all financial liabilities.
Resident status           : Singapore Resident Status , but travels andresides in Taiwan regular basis.
Previous experience     : Worked with ABCX  (TAIWAN) LTD for 5 years.
Immediate support staff: Supported by Mr. Edward Choi
Other position             : President of ABBX  (THAILAND)
     
*Office & Facilities*
===============
Size                 : 230 sq. meters
Location           : Commercial area
Facilities          : Modern and computerized.
Description       : Well decorated and professionally layout.
Property status : Rented
Type of Building: 12 storey office building
Comments       : Office space shared with another company listed as  ABC MFG LTD.Relationship with
                         ABC MFG LTD unknown.

TRADE REFERENCES

*Domestic Customers*
==================
Sales of IT products to local electronic compants manufacturers as followed:

- TAIWAN ELECTRONIC SCREEN CO LTD
- KOKOS PLASMA SCREEN MFG CO LTD

*Associations*
===========
Member of :
- Taiwan Electronics Association

*Competitors*
===========
The following four (4) locally based companies supply an identical range of products :
1.  ABC COMPUTERS LTD
2.  CCC INFORMATION CORP
3.  DDD PC CO LTD
4.  Z-BASE ELECTRONICS INC

RELATED PARTIES(Subsidiaries , Joint-ventures & Affiliates)

RELATED PARTIES DESCRIPTION

*Subsidiaries, Joint-ventures & Affiliates*
=================================
Company Name                                                        No. of shares      % of Investment
--------------------                                                            ------------------      ----------------------
TAIWAN-LIGHT POLYPROPYLENE CO LTD                 8,000,000                     80
TREND-X (CHINA) CO                                                  1,000,000                     10
Ms. Lily Chang                                                            1,000,000                     10

Joint-ventures
--------------------
HECTOR LAMINATES CORP
This is a joint-venture between the following companies:
- WESTS COAST IMPORTS INC
- ZEN-TEK ELECTRONICS LTD

*Strategic Partners & Alliances*
=======================
In 2002, the firm announced a strategic alliance with one of China's largest computer manufacturers.
Alliance name    : GX CHINAS ELECTRONICS GROUP OF COMPANIES
Founder             : Unknown
Holding company: LUKSS CHOP INVESTMENTS LTD
Country              : Hong Kong
Group members  : A consortium of large manufacturers in China, Hong Kong and Taiwan.

IMPORTER AGENCY LISTING

LOCAL DISTRIBUTION & WAREHOUSING

*Local Distribution Network*
=====================
Approximately 10% of the annual turnover is attributed to local sales through medium sized wholesalers servicing the domestic electronics manufacturing market.

Local sales network includes the following firms:
1. HYDROS ELECTRONICS CO
2. CHAN'SA COMPONENTS
3. DAZZLINGSS ITEMS  LTD

*Warehousing Facilities*
==================
All warehousing of IC's is maintained in ZEN-TEK's Taipei bonded warehouse.  ("Bonded" implying that all IC's are imported without import tax since the items are 100% exported or sold to government owned production plants).

INTERNATIONAL TRADE : ACTIVITY & MARKETS

Exporting to Argentina
Exporting to Asia
Exporting to Australia
Exporting to Europe
Exporting to USA
Importing from Asia
Importing from Europe
Importing from Germany
Importing from USA

INTERNATIONAL TRADE ACTIVITY DESCRIPTION

*Export Markets*
============
90% of the annual turnover is attributed to export to the following countries/region:
Country           % of Exports
-----------        ------------------
U.S.A.                    60
Hong Kong              20
Europe                    15
Australia                   5

*Overseas Customers*
==================
- COUNTRY ASIA PACIFIC LTD (Hong Kong)                                           
- COMPLEX COMPUTERS CORP (USA)                                
- MEGENE (Germany)