Extracted from Annual Report 2008

Anwell Technologies Ltd. ("Anwell") has developed into a global leader in providing advanced and innovative optical disc replication equipment and the world's first and only vertically integrated optical disc equipment manufacturer with a media products manufacturing and trading arm. The Group's sales in FY08 was boosted by 35% to HK$905.4 million due to the strong contribution from the media products manufacturing and trading business. The media products division contributed HK$725.2 million to or 80.1% of the total revenue for FY08.

In 2008, the Group leveraged on its core technologies of thin film and vacuum coating and expanded into the solar cell industry. With the success of the vertically integrated business model of the optical disc segment, the solar segment will adopt a similar vertical integrated strategy. The Group's business activities now include the design, manufacture and sale of solar cells/modules as well as the entire turnkey solution for manufacturing thin film a-Si solar modules.

With these unique business platforms, Anwell is now the world's first and only equipment manufacturer with optical disc and solar cell manufacturing capabilities. The Group currently operates two equipment manufacturing facilities, two optical disc manufacturing facilities and a newly developed manufacturing plant of solar cell in PRC with a total staff force of 2,375.

Equipment business

During the year the Group has engaged actively in research and development to expand the equipment product portfolio in the areas of next generation Blu-ray disc equipment, Organic Light Emitting Diode ("OLED") equipment, as well as its much anticipated thin film solar cell equipment.

Optical disc equipment

Leveraging on the technology of Blu-ray disc ("BD") developed in 2005, as well as the support from the PRC Government, Anwell successfully launched its latest SMART-BD COMBO production system in 2008. One of the most important features of the system is that it is capable of producing pre-recorded Blu-ray disc with a storage capacity of 25GB (BD25) and 50GB (BD50), DVD and CD, as well as recordable Blu-ray disc with a 25GB storage capacity (BD25), and it also adopts the latest designs to provide great flexibility to meet the various requirements of our customers worldwide.

At the Media Tech Expo in May 2008, Anwell was once again a step ahead of the competition and was the only company that showcased a real production demonstration of the Blu-ray disc production line. This display generated mainly positive discussions with over 50 potential customers and enabled the Group to sign contracts with customers immediately at the show.

Unfortunately, with an air of uncertainty surrounding the global operating environment, the Group's optical disc equipment business will continue to be affected as disc manufacturers scale back on their capacity expansion plans. However, the increasing market share of the Blu-ray disc format bodes well for the Group's future growth. An industry research firm, Futuresource Consulting, estimates that global demand of Blu-ray discs is expected to increase from 0.13 billion in 2007 to over 1.8 billion in 2012. The Group has already delivered Blu-ray disc equipment to customers in Hong Kong, United States and Europe. As a major equipment supplier for the industry, Anwell is well-prepared to tap into this growing market.

Thin film a-Si solar cell equipment

Based on our expertise and experience in vacuum technology, automation and process engineering, Anwell successfully launched its proprietary production processes in the solar industry. The Sunlite-120 turnkey solution is designed for production of a-Si single junction and microcrystalline silicon tandem junction cell with a capacity that can be upgraded to 120 megawatt ("MW").

Media products manufacturing and Trading Business

Our media products business faced a series of challenges through the course of the year, ranging from the appreciation of Renminbi ("RMB"), to higher labor costs to the economic crisis that has impacted global demand. However, the media products business is expected to continue to provide stable cash flow to the Group and maintain the revenue growth momentum by taking advantages of economies of scale. In addition, further consolidation of media products manufacturing industry worldwide may help the Group to strengthen its market position.