The Group is one of the leading manufacturers of scooter and cub motorbikes in Vietnam, which the Directors believe currently ranks third among the principal foreign-owned motorbike manufacturers in terms of sales volume. The Group also produces motorbike engines and parts for use in its own motorbikes and for sale, and it sells and services moulds for making die-cast and forged metal parts. The Group's manufacturing and assembly operations are conducted principally in two factories located near the two largest cities in Vietnam, namely Ho Chi Minh City and Hanoi. In the first half of 2007, the Group sold on average 17,661 motorbikes per month. The theoretical annual production capacity of the Group's motorbike facilities, calculated by aggregating the maximum output per day of the bottleneck in each of the motorbike production lines as at the Latest Practicable Date, was approximately 314,940 units. The principal operations of the Group are undertaken through VMEP, which began operations in Vietnam in 1992.

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