Apart from the above, some of our multi-media player customers require television reception
capability to be incorporated into their products. Usually this is done with a TV tuner module. As TV
tuner modules are fairly standard components that do not require specific designs, we usually engage
an Independent Third Party subcontractor to provide us with this TV tuner module. During the Track
Record Period, we engaged a Shenzhen based subcontractor, Shenzhen Hikeen on a non-exclusive
basis to provide us with TV tuner modules. These TV tuner modules are incorporated into our products
before selling to our customers. Our payment term with them is COD upon delivery of products to us.
During the Track Record Period, total fees paid to this sub-contractor amounted to approximately
HK$2.12 million, HK$6.81 million and HK$3.29 million, representing approximately 0.31%, 0.74%
and 0.67% of our total costs of sales, respectively. We have been sub-contracting Shenzhen Hikeen’s services for around two and a half years.