2008 Income Statement Walkforward(in 000's)

2007 Actual/ Price/ Exchange New Transfers Cost Lost 2008 Inc / (Dec) New Program Forecast Contract Inflation Rate Programs In Reductions Programs Other Budget $ % QD

Back-to-Back Sales - - Outside Sales - - #DIV/0! 4,400 Intercompany Sales - - #DIV/0! Sales - - - - - - - - - - - #DIV/0!

Direct Material - - - #DIV/0! 2,992 Material % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Material Adders - - - - - #DIV/0! 32 Material Adders % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Labor - - #DIV/0! 326 Labor % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Overhead - - - #DIV/0! 458 Overhead % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Intercompany Purchases - - #DIV/0! Mat Interco Sales % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Scrap - - #DIV/0! Restructure - - #DIV/0! Cost of sales - - - - - - - - - - - #DIV/0! 3,807

Gross Margin - - - - - - - - - - - #DIV/0! Gross Margin % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Selling - - - #DIV/0! Research & Development - - #DIV/0! General & Administrative - - - #DIV/0! Total operating expenses - - - - - - - - - - - #DIV/0!

Op expenses % of sales #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! - -

EBITDA - - - - - - - - - - - #DIV/0! EBITDA % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Depreciation - - #DIV/0! Amortization - - #DIV/0! Interest expense cash - - #DIV/0! interco interest - - #DIV/0! Non-cash interest expense - - #DIV/0! Translation loss (gain) - - #DIV/0! Management fee - - #DIV/0! Other (expense) income - - #DIV/0!

- Total Non-operating - - - - - - - - - - - #DIV/0!

Income before income taxes - - - - - - - - - - - #DIV/0!

Income taxes - - #DIV/0! Tax rate #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Net Income - - - - - - - - - - - #DIV/0!

3223

05/03/2023

document.xls

REQUESTED CAPITAL: 268,766 REQUESTED EXPENSE: 5,190

273,956 Capacity Expansion: 2008 2009 2010

Total Gross Sales 6,841,627 6,841,627 6,841,627 Payment Discount 2.0% (136,833) (136,833) (136,833)Rebate 0.0% - - - Total Net Sales 6,704,794 6,704,794 6,704,794

% Tot Cost % SalesDirect Materials 66.6% 3,651,803 3,651,803 3,651,803 54.5%Material Adders 3.9% 211,805 211,805 211,805 3.2%Labor/Overhead 19.4% 1,062,503 1,062,503 1,062,503 15.8%Logistics/Whse 2.0% 107,479 107,479 107,479 1.6%Import Duties 8.2% 447,828 447,828 447,828 6.7%Total Incremental Cost 100.0% 5,481,417 5,481,417 5,481,417 81.8%

MARGIN on Incremental Sales 1,223,377 1,223,377 1,223,377 1,360,210 MARGIN % Sales 18.2% 18.2% 18.2% 19.9%

Cost Reduction:Total Cost Reduction - - -

Requested Expense 5,190 5,190 5,190

COMBINED MARGIN 1,218,187 1,218,187 1,218,187

Ul/CSA Expense - SG&A % Sales N/A N/A N/A

EBITDA 1,218,187 1,218,187 1,218,187

Depreciation: (Enter Depreciable Life) -----> 7 38,407 38,407 38,407 Taxable Income 1,179,781 1,179,781 1,179,781 Tax Rate 0.00% 12.50% 12.50%Tax Payments 0 147,473 147,473

Working Capital Items: DSO (Enter DSO) -----> 60 (1,140,271) (1,140,271) (1,140,271) Inv Turns-Normal (Enter Inv Turns) -----> 12 (304,317) (304,317) (304,317) Freight (Enter Days in Transit) -----> 35 (532,916) (532,916) (532,916) AP Days (Enter AP Days) -----> 75 760,792 760,792 760,792

Total Working Capital (1,216,712.0) (1,216,712.0) (1,216,712.0)

EBITDA 1,218,187.4 1,218,187.4 1,218,187.4 Tax Payments 0.0 (147,473.0) (147,473.0)Working Capital Change (1,216,712.0) 0.0 0.0 NET CASH FLOW (268,766) 1,475 1,070,714 1,070,714

CASH FLOW ECONOMICS:RRR 13%NPV $ 1,313,125 IRR 138.1%PAYBACK (Years) 1.2

2007 Gross 2007 2007 net Inc/(Dec) in New (Lost) X Customers Forecast Rebate Forecast Contract Price Program Program Reason ABCDEFGH

Total:

Y Z Net 2008 Reason Reason Change Budget

ECI (Huizhou)2008 BudgetHeadcount & Capex

Name Position Sep-07 Jan Feb Mar Apr May Jun FinDick Lam Controller 1 1 1 1 1 1 1 Stephen Li Manager 1 1 1 1 1 1 1 Lily Li Accountant 1 1 1 1 1 1 1 Tina Jia A. Accountant 1 1 1 1 1 1 1 Linda Lin A. Accountant 1 1 1 1 1 1 1 Samantha A. Accountant 1 1 1 1 1 1 1 Debbie A. Accountant 1 1 1 1 1 1 1

------------ ------------ ------------ ------------ ------------ ------------ ------------ 7 7 7 7 7 7 7

Salary Jan Feb Mar Apr May Jun

65,000 65,000 65,000 68,250 68,250 68,250 35,000 35,000 35,000 38,500 38,500 38,500 6,000 6,000 6,000 6,000 6,000 6,000 9,500 9,500 9,500 10,450 10,450 10,450 7,500 7,500 7,500 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 7,500 7,500 7,500 8,250 8,250 8,250

------------ ------------ ------------ ------------ ------------ ------------Salary 138,750 138,750 138,750 147,950 147,950 147,950

MPF 6,938 6,938 6,938 7,398 7,398 7,398 Medical 2,100 2,100 2,100 2,100 2,100 2,100

Double Pay 11,563 11,563 11,563 12,329 12,329 12,329 Bonus 13,875 13,875 13,875 14,795 14,795 14,795

Jul Aug Sep Oct Nov Dec Existing 2008

1 1 1 1 1 1 65,000 68,250 1 1 1 1 1 1 35,000 38,500 1 1 1 1 1 1 14,800 6,000 1 1 1 1 1 1 9,500 10,450 1 1 1 1 1 1 7,500 8,250 1 1 1 1 1 1 7,500 8,250 1 1 1 1 1 1 7,500 8,250

------------ ------------ ------------ ------------ ------------ ------------ 7 7 7 7 7 7

Jul Aug Sep Oct Nov Dec

68,250 68,250 68,250 68,250 68,250 68,250 38,500 38,500 38,500 38,500 38,500 38,500 6,000 6,000 6,000 6,000 6,000 6,000 10,450 10,450 10,450 10,450 10,450 10,450 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250

------------ ------------ ------------ ------------ ------------ ------------ 147,950 147,950 147,950 147,950 147,950 147,950

7,398 7,398 7,398 7,398 7,398 7,398 2,100 2,100 2,100 2,100 2,100 2,100 12,329 12,329 12,329 12,329 12,329 12,329 14,795 14,795 14,795 14,795 14,795 14,795

5%á

Salary for Social Security Jan Feb Mar Apr May

3,250 3,250 3,250 3,413 3,413 #N/A 224 224 224 224 #N/A 188 188 188 188 #N/A 188 188 188 188 #N/A 188 188 188 188 #N/A 188 188 188 188 #N/A 173 173 173 173

Jun Jul Aug Sep Oct Nov Dec

3,413 3,413 3,413 3,413 3,413 3,413 3,413 224 224 224 224 224 224 224 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 173 173 173 173 173 173 173

HK'000 Sales 30,000

Cost 25,000

Gross Margin 5,000 % 16.7%

Selling Expenses 2,500 General Admin 1,030

EBITDA 1,470 4.9%

HK$'000 C/M Budget F/(U) %

Sales 30,000 32,000 (2,000) -6.3%

Cost of Sales 24,000 26,500 2,500 9.4%Commission 1,000 1,100 100 9.1%

25,000 27,600 2,600 9.4%

Gross Margin 5,000 4,400 600 13.6%16.7% 13.8% -30.0%

Selling ExpensesA & P 1,300 1,500 200 13.3%Staff Salary 1,000 977 (23) -2.4%Staff Welfare 100 98 (2) -2.0%Entertainment 30 25 (5) -20.0%Traveling 60 55 (5) -9.1%Others 10 11 1 9.1%

2,500 2,666 166 6.2%

General Admin.Staff salary 800 810 10 1.2%Staff welfare 80 75 (5) -6.7%Rent & Rates 100 100 - 0.0%Communication 30 25 (5) -20.0%Others 20 19 (1) -5.3%

1,030 1,029 (1) -0.1%

EBITDA 1,470 705 435 61.7%4.9% 2.2% -21.8%

Nov-07 Dec-07 Total 2007Department RMB USD RMB USD RMB USDCustomer Service 515.00 68.67 Engineering 1,520.00 202.67 Finance 4,412.10 588.28 HR 2,423.00 323.07 IT - - KPO 900.00 120.00 Manufacturing 945.00 126.00 Operations 950.00 126.67 PMC - - Production 2,020.00 269.33 Program 2,195.00 292.67 Project - - QA 1,915.00 255.33 Security 2,350.00 313.33 Supply Chain Management 300.00 40.00

------------------- ------------ ------------ ------------ ------------ ------------Total 20,445.10 2,726.01 0 0 0 0

=========== ======= ======= ======= ======= =======

CashflowJan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08

Net Income 157 (258) 45 22 166 72 57 454 618 Add:

Depreciation 117 117 117 117 117 125 125 125 125

Change of WCA/R (545) 2,172 (1,816) (249) 694 (374) (890) (1,246) (854)Inventory 1,274 (632) 10 474 (605) (1,160) (1,339) (622) 574 A/P (803) (1,233) 784 (702) 380 1,323 1,412 706 (580)Others

--------- ---------- ---------- --------- ---------- ---------- ---------- ---------- --------- (73) 307 (1,022) (478) 469 (211) (817) (1,162) (860)

Capex - - - - (200) - (1,200) - -

Cash (Surplus)/Loan Required (50) (165) 861 339 (552) 15 1,836 583 118 --------- ---------- ---------- --------- ---------- ---------- ---------- ---------- --------- 150 - - - - - - - -

Bginning Cash Balance 150 300 300 300 300 300 300 300 300 Net Cashflow 150 - - - - - - - -

Ending Cash Balance 300 300 300 300 300 300 300 300 300 ===== ====== ====== ===== ====== ====== ====== ====== =====

Cur: HKD'000 Oct-08 Nov-08 Dec-08

489 338 223

125 125 125

338 890 374 880 453 1,156 (1,063) (579) (1,062)

---------- ---------- ---------- 155 764 468

- - -

(769) (1,227) (815)---------- ---------- ---------- - - -

300 300 300 - - - 300 300 300 ====== ====== ======

ABC Company2009 BudgetCost Reduction

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-091. Material Saving

Connector - - - - - - - Housing - - - - - - - Wire - - - - - - - Packing - - - - - - - IC - - - - - - -

- - - - - - -

2. Utitlity - - - - - - -

3. Re-structureDepartmentIT - - - - - - - Finance - - - - - - - Production - - - - - - - Material - - - - - - -

- - - - - - -

Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Total How

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -