ITEM 1. CHANGE IN CONTROL
COMPANY OVERVIEW
The Company, through Nano, its operating subsidiary in Taiwan, is in the
business of developing and producing nano-scale coating technology to be applied
to various mechanical tools and metal surfaces for sale to manufacturers
specifically in the computer, mechanical and molding industries. Nanotechnology,
or molecular manufacturing, is a technological process designed to allow
products to be able to be manufactured lighter, stronger, smarter, cheaper,
cleaner and more precise. The Company purchases products needed by its customers
from various suppliers, applies the nano-scale coating technology to the
products and sells these products to its customers. The Company's main customers
have been Datech Technology Co., Delta Electronics, Inc., Honhai Molding and
Honyi Tooling. Currently, the Company is focused on the application of
nano-scale multilayer coatings to computer related parts, such as CPU coolers
and fan bearings, to industrial drill bits and cutters, and in the molding
industry to various molds used in disc production.
The Company's unique Arc Bond Sputtering and superlattice technology is a
recent development in the field of surface technology. This technique combines
multiple nano-scale layers of specific metals, known to have excellent hardness
properties and chemical resistances, in consecutive films that give the material
coated a new and improved periodical structure. The application of these new
coatings on industrial products is designed to change their physical properties,
thus improving an individual product's toughness, resistance, performance and
durability.
The Company is one of few companies in Taiwan with nano-scale technology
capable of nanotechnology commercialization. The Company has focused its
research and development efforts to apply nanotechnology in metal hard-coating.
Since Nano's inception in 2002, its business has progressed from development, to
pilot production to mass production. In the future, the Company expects to
expand the number and type of industries it is able to service. The Company
anticipates working with the developmental needs of Taiwan's semiconductor,
precision machinery and telecommunication industries to establish
micro-component production, equipment and inspection technology, and
micro-system assembly and testing technology. The Company also plans to
integrate the design technologies of mechanical, optical, electronic, magnetic,
and micro systems to be applied in future products.
INDUSTRY OVERVIEW
In recent years, Taiwan's semiconductor and electronic information
industries have experienced rapid growth. As electronic products progress
towards the trend of being "light, thin, short and small", the Company believes
that the demand toward this trend for various components, processing equipment
and precision of electronic products is also increasing. The Company believes
that these trends are creating demand for higher precision, higher density, high
speed, intellectualization, and miniaturization progressing into the "next
generation of manufacturing technology". The Company believes that this "next
generation of manufacturing technology" has primarily two major developmental
directions, which are nanotechnology and electro-mechanical system technology.
Nanotechnology is manufacturing technology in the 102nm to 0.1nm range and
electro-mechanical system technology is used in nanotechnology to produce more
refined components and parts to integrate microelectronic circuit and controller
systems.
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In 2002, the Industrial Development Bureau MOEA of Taiwan (MOEA) published
a report with the top ten newest rising industries in which nanotechnology was
the first listed. The Industrial Technology Research Institute of Taiwan (ITRI)
in its Expectation and Strategic Planning for 2008 proposal, lists
nanotechnology as the developmental focus for the next six years. As for the
magnitude of the nanotechnology market, according to MOEA, by the year 2010, the
nanotechnology market in Taiwan is expected to increase to 500 billion NT
dollars, or approximately USD$14.7 billion, and the areas affected by
nanotechnology will reach one trillion NT dollars, or approximately USD$29.4
billion. Furthermore, Taiwan's National Science Council and Ministry of Economic
Affairs has budgeted 23.1 billion NT dollars, or approximately USD$678 million,
toward its National Nanotechnology Project.
KEY MANAGEMENT
Alice Tzu-Shia Hwang, is President and Chairman of the Company. She became
president of Nano, the Company's operating subsidiary in 2002. Ms. Hwang is the
primary business director and head of all marketing and sales projects with the
Company. She has implemented numerous business projects throughout her many
years in management and sales for such publicly held companies as Long Chance
Industrial Inc. and Evertop Wire & Cable Co. She has also had extensive
experience as the Chief of Research & Development for wire and cable materials
and Director of Quality Management at Hong Tai Electric Industrial Co. Ms. Hwang
has obtained a degree in Chemical Engineering from Nanya Institute of Technology
and also a degree in Oceanography from the National Taiwan Ocean University.
Yu-Chien Cheng, is a Director of the Company and Chief Inspector of the
Company's technology team. Mr. Cheng's responsibilities include overseeing both
the production process and research and development. Mr. Cheng has had many
years of experience in research and helped in founding Nano. Mr. Cheng graduated
from the National Taiwan University with a master's degree in mechanical
engineering. He received training in Plasma Physics from the UK's Sheffield
Hallam University.
Chien-Fang Wang, is a Director and Vice President of the Company. Since
2002, Mr. Wang was employed as the General Business Manager for Nano. He is
primarily involved in projects related to business development and also sales
and marketing. For 25 years prior to joining Nano, Mr. Wang worked for Yi-Tai
Cable & Wire Inc. in production planning. Mr. Wang has a bachelor's degree in
Chemical Engineering from the Electrical Engineering Department at Tatung
University in Taiwan.
Kevin Chung-Chieh Lin, is a Director of the Company. Since 1996, Mr. Lin
has been the Chief Executive Officer of Chyun-Hwa Group, an investment company
involved in corporate finance and securities consulting. Mr. Lin has also
involved in venture capital and strategic investments and has invested in,
developed and managed more than fifteen public and private companies in Taiwan
and China. Mr. Lin's investment experience has been particularly in the biotech
and electronics industries. Mr. Lin has a degree in Economics from Tan Jiang
University.
Yun-Chun Tseng, is a Director of the Company. Over the past eighteen years,
Ms. Tseng has been primarily involved in international trade. Ms. Tseng
established Shanghai Moli-Lai Electronics Inc. and has overseen design and
manufacture of various electronic products and computer peripherals. Ms. Tseng
graduated with a degree in Business Administration from Ming Teh Business
College.
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