Teamwork Customer satisfaction Win-win-winTeamwork Customer satisfaction Win-win-win

WelcomeWelcome

ACTION ELECTRONICS CO., LTDACTION ELECTRONICS CO., LTD

Operation and ProspectiveOperation and Prospective

May 26,2004May 26,2004

ACTION ELECTRONICS CO., LTDACTION ELECTRONICS CO., LTDBreif outlinesBreif outlines

AA 、、 General Situation of company General Situation of company

BB 、、 General Situation of operationGeneral Situation of operation

CC 、、 General Situation of finance General Situation of finance

DD 、、 Future prospectiveFuture prospective

AA 、、 General Situation of General Situation of CompanyCompany

aa 、 、 Basic BackgroundBasic BackgroundFoundation:July 21,1976Foundation:July 21,1976

Substantial Capital:TND 2.121 billionSubstantial Capital:TND 2.121 billion

Employees:240 personsEmployees:240 persons

(2,000 employees in the world)(2,000 employees in the world)

Address:198 CHUNG TUAN ROAD CHUNG LI IND Address:198 CHUNG TUAN ROAD CHUNG LI IND

ZONE CHUNG LI TAIWAN R.O.CZONE CHUNG LI TAIWAN R.O.C

TEL:886-3-4515494 TEL:886-3-4515494

http://www.action.com.twhttp://www.action.com.tw

bb 、、 Organization constructionOrganization constructionStockholder Meeting

Board of Directors

Supervisor

Chairman of the Board

General Manager

Audit Office

ACTION ASIA LIMITED

HSINGYUAN HOLDING COMPANY IN BRITISCH VIKING ISCLANDS

FAR YEAR (HOLDING) LTD.

SHANGHAI FAR YEAR TECHNOLOGY

CO., LTD.

ACTION TECHNOLOGY(SHEN

ZHEN) CO., LTD.

100%

Vice General Manager

AMERICA ACTION INC. 100%

ACTION ELECTRONICS CO., LTD

大恩投資股份有限公司 85.57%

99.3%

價值創造促進委員會

九大循環作業促進委員會

General Management

Chung Li Plant

Management

Finance

Accounti

ng

Product

Departm

ent

Plant

Affairs

Business

Departmen

t Quality

Control

Developme

nt

Departmen

t

R&D Center

Marketi

ng

General

Manager

Office

cc 、、 Organization of Overseas BranchOrganization of Overseas Branch

清算中

dd 、、 Operating teamOperating teamProfessiomal

title Name Educational background Experience Year

Generalmanager

彭君田 Chiao Tung University、美國西堤大學碩士

( )台王電子 股 公司 28. 0

Vicw generalmanager 彭文志

Tamkang University( )台昭電子 股 公司

27. 5

Vicw generalmanager

趙登榜 Tamkang University ( )三愛電子 股 公司 20. 4

Vicw generalmanager

翁啟民 Chi ao Tung Uni versi ty 善品電子(股)公司 20. 3

Assistantmanager

廖錦成 ChungHsing University 憶聲電子(股)公司 22. 3

R&DVice general

manager

Marketing

AssistantmanagerAssistantmanager 李夢麟 Chinese Clture University

國碁電子 0. 2

2. 0謝澄銀 Phd. Of Tsing Hua 泰潘有限公司

宋文志 Taipei University Technology 廣利公司 13. 4

BB 、、 General Situation of General Situation of operationoperation

aa 、、 Scope of BusinessScope of Business forecast in 20042004

*CAR VIDEO: 8.5 billions 61% *CAR VIDEO: 8.5 billions 61%

Travel bag LCD AV COMPOTravel bag LCD AV COMPO

Overhead LCD AV COMPO Overhead LCD AV COMPO

Head-Rest LCD AV COMPOHead-Rest LCD AV COMPO

*TFT LCD Application of Product*TFT LCD Application of Product ︰ ︰ 5 billion5 billions 36% s 36% 1.8”~3.5“ pocket water-resistant LCD TV 1.8”~3.5“ pocket water-resistant LCD TV

4.5”~8” Portable LCD AV COMPO4.5”~8” Portable LCD AV COMPO

10.4“~15” LCD (Home/ Mobile Theater10.4“~15” LCD (Home/ Mobile Theater

*Others*Others ︰ ︰ 0.5billions 3%0.5billions 3%

Music product center system and componentsMusic product center system and components

bb 、、 Specific Weight of Operation of the Group in Specific Weight of Operation of the Group in 20042004

61%

36%

3%車載視聽產品TFT-LCD應用產品

/其他零組件

cc 、、 Market & general situation of product and Market & general situation of product and salesale 單位 :仟元

Year 2002 Rate 2003 Rate Forecast in 2004 Rate

Asia 3, 060, 018 46% 2, 517, 183 24% 3, 600, 000 26%America 2, 779, 683 41% 7, 005, 389 68% 6, 400, 000 45%Europe 713, 392 11% 720, 265 7% 3, 600, 000 26%Other 121, 211 2% 73, 144 1% 400, 000 3%Total 6, 674, 304 100% 10, 315, 981 100% 14, 000, 000 100%

0

20

40

60

80

亞太 美洲 歐洲 其他

2002年

2003年

2004年估

dd 、、 Tactics of New Products and Technology Tactics of New Products and Technology developdevelop

(i)Targets of Products and Technical Efforts(i)Targets of Products and Technical Efforts

　　 1.Keep the leader position of Mobile multimedi1.Keep the leader position of Mobile multimediaa

in the world, and reorganize and create in the world, and reorganize and create

constantly in the mobile products. constantly in the mobile products.

　 　 2.The quality strides forward No.1 in the world.2.The quality strides forward No.1 in the world.

Video orients to H.D, and audio orients to Video orients to H.D, and audio orients to

HI- FI.HI- FI. 　　　

(ii)Management governing principle to achieve the target(ii)Management governing principle to achieve the target

1.Specialized operation and delegation1.Specialized operation and delegation 、、 sharing of resources:sharing of resources:

Ever branch brings professional into full play. ResourcesEver branch brings professional into full play. Resources

can be shared.Proceedings can be complementary.can be shared.Proceedings can be complementary.

2.Each branch cooperate2.Each branch cooperate 、、 all industry service:all industry service:

Supply service of each branch and all industry.Supply service of each branch and all industry.

Customer’s content is our supreme achievement.Customer’s content is our supreme achievement.

3.Teamwork3.Teamwork 、、 Fast listing:Fast listing:

Bring teamwork benefit fully play.Push the new product toBring teamwork benefit fully play.Push the new product to

the market and take the market up.the market and take the market up.

(iii)The strategy of the new product:(iii)The strategy of the new product:

1.All products bring digital into full play. 1.All products bring digital into full play. electronicelectronic

2.Products combine with internet functions. 2.Products combine with internet functions. internetinternet 3.Reorganize the wireless technology to use mobile products3.Reorganize the wireless technology to use mobile products

easily. easily. MM 化化 44.Combine multi-media vide.Combine multi-media vide 、、 hi-fi hi-fi 、、 communication computercommunication computer

in one multi-media device. in one multi-media device. 即即 AVCC AVCC 5.Delicately,care more quality of products than savior of 5.Delicately,care more quality of products than savior of products.products. 6.Personalize,care more functions of products than fashion6.Personalize,care more functions of products than fashion of products. of products.

(iv)The target of new products:(iv)The target of new products:

1.Focus on designing1.Focus on designing 、、 manufacturingmanufacturing 、、 manufacturingmanufacturing finished products or selling of LCD.finished products or selling of LCD. 2.Focus on saving and reading in multi-media 2.Focus on saving and reading in multi-media device.device. 3.Promote the technology of wireless mobile 3.Promote the technology of wireless mobile satellite and wireless network.satellite and wireless network. 4.Integrate WLAN in multi-media.4.Integrate WLAN in multi-media. 5.Design products originally.5.Design products originally. 6.The delicate and tiny technology of products.6.The delicate and tiny technology of products.

CC 、、 General Situation of General Situation of financefinance

aa 、、 SalesSalesunit:TND 1000

Item 2002年 2003年 2004預估Sales 4,286,886 6,684,368 8,000,000

consolidate sales 6,674,991 10,315,981 14,000,000

0

10,000,000

20,000,000

營業收入 合併營業收入

2002年 2003年 2004預估

bb 、、 EPS before TaxEPS before Taxunit:TND

目前股本目前股本 :21.21:21.21 億元億元

預估股本預估股本 :26:26 億元億元

Item Year 2002 2003 2004 Q1 of 2004EPS before tax 4.21 3,81 4.0 0.71EPS after tax 3.5 3,42 3.2 0.69

cc 、、 Estimate Sale and profit of the Group in 2004Estimate Sale and profit of the Group in 2004

unit︰ TND 1000

Item Q1 Q2 Q3 Q4 Totalconsolidate sales 1,600,000 3,600,000 5,000,000 3,800,000 14,000,000

reach in fact 1,600,000

reach rate 100%

income before tax 151,152 206,848 350,000 312,000 1,020,000

reach in fact 151,152

reach rate 100%

DD 、、 Future Prospective Future Prospective

aa 、、 Short and medium term management tacticsShort and medium term management tactics

1.Market tactics1.Market tactics ：： Set up tactical alliance with clients and top 3 sales cSet up tactical alliance with clients and top 3 sales companies in the world.Besides, shorten one stage route in sales. ompanies in the world.Besides, shorten one stage route in sales.

2.Manufacturing and quality tactics:Integrate group resource and pro2.Manufacturing and quality tactics:Integrate group resource and promote electric internet and Mmote electric internet and M 化化 engineering.promote management to engineering.promote management to let service fast and increase clients’ satisfied.let service fast and increase clients’ satisfied.

3.R&d tactics:Train positively excellent talents and focus on the develo3.R&d tactics:Train positively excellent talents and focus on the developing trend of products in the future.Adopting group integration techping trend of products in the future.Adopting group integration technology for division and sharing. All human resource can support eacnology for division and sharing. All human resource can support each other. h other.

4.Management tactics:strengthen financial management and notice eve4.Management tactics:strengthen financial management and notice every market changes in the world. Providing instant information to mary market changes in the world. Providing instant information to managers all the time.nagers all the time.

1.1. Research and develop the next generation productioResearch and develop the next generation production relating n relating 光電光電 to increase adding value and functto increase adding value and function.ion.

2.Research and develop common components lastingly to 2.Research and develop common components lastingly to enhance production competitive strength and have oenhance production competitive strength and have own designing right in hand.wn designing right in hand.

3.By cooperating research and development, it can gat3.By cooperating research and development, it can gather the latest technology and can enter the market her the latest technology and can enter the market more easing with the advantage technology.more easing with the advantage technology.

bb 、、 Long term development planLong term development plan

cc 、、 The future development plans of new productsThe future development plans of new products 11 、車用數位衛星直播電視平面相列天線系統 、車用數位衛星直播電視平面相列天線系統 22 、數位無線寬頻通訊網路多媒體傳輸系統 、數位無線寬頻通訊網路多媒體傳輸系統 33 、數位多媒體應用系統、數位多媒體應用系統 44 、多媒體結合、數位相框等家用液晶電視 、多媒體結合、數位相框等家用液晶電視 55 、、 Digital TVDigital TV 66 、液晶顯示器關鍵性零組件開發、液晶顯示器關鍵性零組件開發 77 、無線連接車用視聽系統、無線連接車用視聽系統

dd 、、 Compete advantageouslyCompete advantageously1.Outstanding of talents in R&D. Every product t1.Outstanding of talents in R&D. Every product takes only three months on average form meditatinakes only three months on average form meditatingg 、、 designingdesigning 、、 R&DR&D 、開模、、開模、 manufacturing amanufacturing and delivering.nd delivering.

2. The general office in Taiwan has a R&D center 2. The general office in Taiwan has a R&D center is responsible for new hi-tech product whose comis responsible for new hi-tech product whose common and future can be seen in the coming two yeamon and future can be seen in the coming two years.rs.

3.Action have high market shore in hand, and clie3.Action have high market shore in hand, and clients are all famous large logistics in the world.nts are all famous large logistics in the world.

4.Action Electronic CO., Ltd has complete structure in R&D4.Action Electronic CO., Ltd has complete structure in R&D 、、manufacturing and sales. They are individually located in Taiwmanufacturing and sales. They are individually located in Taiwanan 、、 Malaysia and Mainland China. Every manufacturing base Malaysia and Mainland China. Every manufacturing base all lasts at lest 10 years. The operating performance has a steadall lasts at lest 10 years. The operating performance has a steady growth in long run. Thus. It can meet all kinds of risks from ay growth in long run. Thus. It can meet all kinds of risks from any uncertain factor in the world. ny uncertain factor in the world.

5.Action Electronics CO., LTD contacts with famous financial i5.Action Electronics CO., LTD contacts with famous financial institutions of the world via its excellent credit. And it also can illnstitutions of the world via its excellent credit. And it also can illustrate Action use its capital well.ustrate Action use its capital well.

Thank You!!Thank You!!