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PERFECTECH GROUP was founded in 1978. The Group was initially engaged in
the design and manufacture of plastic packaging products for Hong Kong-based
manufacturers. By 1981, Perfectech had expanded into the production of wall
decorations, party favours and masks, as a natural extension of its product line.
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| Subsequently, in 1983, a production base was established in Zhuhai in
southern China to design and manufacture party novelties. In the following year, Christmas
and other festival decorations were added to the list. Further expansion for the
Group took place in 1988, when all production facilities were relocated to the PRC, with
marketing and administration functions remaining in Hong Kong. At present, the Group's
production facilities are located in three cities in Guangdong, namely, Shenzhen,
Zhuhai & Zhongshan, employing more than 3,000 workers with total floor area more than
1,000,000 sq.ft. |

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| In October 1992, the Group was successfully listed on the Stock Exchange
of Hong Kong Limited. Since then, through merger and acquistion, the Group further
expanded into the businesses of the manufacture of printing products, carton box and
corrugated cardboard, pigments and colourists, trading of PVC film and plastic materials. |

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At present, the Group's businesses are divided into three main streams:
(i) novelties and festival decorations, (ii) packaging products, and (iii) trading of PVC
& plastic materials, with annual turnover of about US$60 million.
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