ZINDART MANUFACTURING LIMITED

Founded in 1978, Zindart Manufacturing, produces and designs high-quality die-cast and injection-molded collectible products for consumer companies with strong global brands in the United States of America and Europe. Many of the die-cast and injection-molded products have complex designs, which require high-quality workmanship and decorative details, with pad printing with up to one hundred imprints. The most complex of these models incorporates up to 20 moveable parts. Zindart Manufacturin... g addresses the market need for vendors that can manufacture high-quality products in the required volumes and in a timely and cost-effective manner. Zindart Manufacturing provides a turnkey manufacturing service that enables it to satisfy customers' requirements at every stage in the production process, including component sourcing, product engineering and model making, computer-aided mold design and production, and manufacturing and packaging of the finished product. This coordinated, one-stop production process provides the Zindart Manufacturing's customers with 1) shortened lead times from design to production, 2) a single participant in the manufacturing process instead of multiple participants and 3) increased efficiency, resulting in lower per-unit costs. The die-cast and injection-molded scale model replicas manufactured by Zindart Manufacturing are sold through hobby shops, collectors' clubs, car and equipment dealers, toy and gift stores and other channels. Zindart Manufacturing has successfully developed long-term relationships with many of its principal customers, including Hallmark, for which Zindart Manufacturing has been a leading supplier of collectible holiday ornaments since 1982. Zindart Manufacturing manufactures many of Hallmark's Keepsake Ornaments, which consist of a variety of Christmas ornaments, holiday-themed pieces and other giftware both in die-cast zinc alloy and plastic. Hallmark's Keepsake Ornaments product line also includes freestanding decorations such as die-cast replicas of pedal cars. The production of Keepsake Ornaments requires highly developed hand spray-painting skills and attention to quality by each member of Zindart Manufacturing's workforce in order to meet Hallmark's exacting aesthetic and quality requirements. The Company also started business relationships with Mattel in 1997 to include die-cast collectibles. Now, Mattel is one of the Zindart Manufacturing's major customers. Develop additional major customers Zindart Manufacturing Ltd has a core group of large customers, but also manufactures products for many smaller customers. Zindart expects that it may be able to develop several of these smaller customers into major customers as they become familiar with the benefits of Zindart Manufacturing's turnkey manufacturing service. Zindart Manufacturing offers major customers a dedicated production team and dedicated production space, which can provide such customers with attractive advantages. For example, Zindart Manufacturing can customize its production facilities to meet the specific needs of its customers, and the customers are able to exercise greater control over the production process, thereby enhancing quality control and cost efficiency, increasing confidentiality and expediting scheduling and delivery timetables. Zindart Manufacturing's ability to offer such dedicated production services has led to enhance relationships with its core customer base. Diversify product offerings - Zindart is diversifying its product offerings to include the manufacture of other consumer products that utilize Zindart Manufacturing's current competitive advantages and production expertise. Further, new product lines are expected to decrease seasonality that has been experienced historically. By diversifying into product lines in which the demand timing varies from that of Zindart Manufacturing's traditional product lines, the utilization of manufacturing facilities can improve, thereby improving profitability. Deploy advanced management information systems - Zindart is enhancing manufacturing and business processes through the deployment of advanced management information systems that enable the real-time monitoring and management of its operating and financial performance and resources. Zindart Manufacturing is implementing an Enterprise Resources Planning System to enhance its master planning and operation efficiency.More