Company Data

INTRODUCTION

Score One Inc. has a wholly owned subsidiary called Advanced Technology International Holdings, Limited.  Advanced Technology is one of the largest manufacturers of printed circuit boards in China, based in Hong Kong with manufacturing facilities in Southern China. 

Advanced Technology International Limited, formerly Modern Frame International Limited began to expand their productivity in mid-1995 with the increased capacity and relocation to DongGuan.  The Research and Development (R&D) Department was established in the same year. 

In 1996 the Company reduced their cost of sales by 40% by launching the double-sided conductive carbon PCB which now represents 66% of their production above the single sided PCB.  The Company further advanced their technology and cost reduction in 1998 with the introduction of Polyester & Polyamine PCB production. 

Nowadays, the Company has two production facilities based in DongGuan in Southern China.  These production facilities employ approximately 600 people, and they produce three major product lines, which are flexible circuit boards, conductive carbon circuit boards and standard fixed circuit boards.  Advanced Technology is the first company to China to bring in conductive carbon technology, which eliminates the welds in the circuitry and uses carbon as a conductive element, which is a much more efficient method to produce the electrical circuit.  This technology enables them to produce very small PCBs which can be used in the new generation of communications equipment, palm top computers and so on which are being produced at the moment.  Over five years of success in the design and manufacture of printed circuit boards (PCBs) with well-known brand named customers, such as Sharp, Canon and Citizen. 

Presently, Advanced Technology has a leading market share for a particular type of printed circuit board, which is flexible circuit board.  They sell predominantly to brand-name companies who produce electronic organizers, digital calculators and communications equipment.

EXISTING CUSTOMERS AND MARKET COMPETITION 

Advanced Technology manufactures and sells to producers of products which would appear under brand names, for example, Canon for digital cameras – a lot of Japanese brand names, hi-tech companies who produce in China for export.  ISO 9002 qualification which was granted in 1999 sets the Company apart from most of the other manufacturers of PCBs in China. 

Advanced Technology established their business for more than nine years, they have very good relationships within their major market of customers.  They also have technology that is quite unique in China.  They have very few competitors, for example, in the double-sided PCB market, and they have no competitors that they are aware of in the conductive carbon PCB market in China. 

FINANCIAL STATUS 

In 1999, revenue of Advanced Technology was US$22.0 million, and net profit was US$4.0 million.  And net income in the first quarter 2000 ending March 31, 2000 is US$1.2 million.  In terms of net profit margin presently is around 15-17%.  They plan to improve to 20-25% by the end of the year 2000.  Also, the Company is developing Multiple Polyamide Inter Connection Board (MPIC) for additional estimated US$16.5 million revenue in 2001 and additional US$5.9 million net profit. 

BUSINESS OPPORTUNITIES 

After China signed the World Trade Organization agreement, the foreign manufacturers who have been producing to date will have a much easier regulatory and operating environment to manufacture products in China for export.  And as China’s manufacturing on the electronics side in particular moves from the more generic into the high technology areas. 

Advanced Technology currently has 60% market share of flexible PCB in Southern China.  They hope to take that to a certain weight in the flexible PCB market through continuing their focus on research and development which has been largely a key to their success in the past.  Presently, a lot of their competitors are still generic.  They produce fixed non-flexible printed circuit boards for the generic electronic products.  That is the reason why Advanced Technology is very bullish about the future of the business.

MANAGEMENT 

Mr. Wing Cheong (Roy) HO, Chairman, President and Director.  Mr. Ho founded Advanced Technology International Holdings, Limited (ATHL) and has over ten years extensive experience in the PCB industry in Hong Kong as well as the PRC.  Before founding ATHL, Mr. Ho worked with Elec & Eltek Company, Limited, a well-known Hong Kong Stock Exchange listed company. 

Mr. Wing Hung (Dennis) Ho, Secretary and Director.  Mr. Ho has ten years experience in factory management and plays a major roll in the successful plant manufacturing. 

Mr. Zhao Jian Li, Business Development Director.  Mr. Li has over 20 years experience in electronics industry in Hong Kong and was the Business Development General Manager of a Hong Kong listed electric company. 

NEWS UPDATE 

On August 03, 2000, Score One Inc. announced that the Company received additional orders equaling in excess of US$2 million from Integrated Display Technology Ltd., Same Time Holdings Limited and Yue Fung International Group Holdings Limited; all of which are Hong Kong Stock Exchange listed companies. 

On June 14, 2000, Score One Inc. announced that it has filed an application to have shares of its common stock listed on the American Stock Exchange.  The listing will be subject to the review and approval of the American Stock Exchange. 

CONCLUSION 

I did a personal interview through telephone with Mr. Roy Ho, the Chairman of Advanced Technology.  Through the interview, Mr. Ho is very optimistic about the PCB market in China especially the flexible PCB products development.  The Company plans to develop their second plant in China and estimates there will be about 40% revenue growth in year 2000 to 2001.  Based on the WTO agreement, Advanced Technology takes a lot of advantages include their competitive position, their market relationships, and technology.  The PCB market in China is estimated around US$20 billion business per year.  There is a lot of room for SCRO to expand and develop their business in different provinces of China, also in terms of their profit growth.

Raymond Chan
President
Chinese Investment Club

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