NATURE OF BUSINESS

Granstar Motors & Industrial Corporation (GMIC) is engaged in the importation, assembly, distribution, as well as retailing of motorcycle products from China.

ASSEMBLY PLANTS

Motorcycles are assembled in two areas, small factory in Batangas City and a major assembly plant in Mandaue Cebu. Distribution is done through multi-brand dealers nationwide selling both Japanese and Chinese brands, and exclusive Granstar outlets. [Plant set up]

COMPANY OWNED / COMPANY OPERATED (COCO)

To date, there are more than 80 company owned / company operated outlets located in the following areas:

Northern Luzon	Metro Cebu
Central Luzon	Visayas and Western Mindanao
Metro Manila (NCR)	Northern Mindanao
Southern Luzon	Southern Mindanao

MAIN PRODUCTS

• Scooters with 4 stroke engines ranging from 50cc and 150cc

• Motorcycles for solo use with 4-stroke engines ranging from 100cc to 200cc

• Motorcycles for business use with 4-stroke engines

• Motorcycle spare parts, accessories and motorcycle shop equipment

• Motorcycle lease-purchase (hire-purchase) program

• Extended Warranty for Motorcycles and Scooters

• Comprehensive Insurance for both Riders and Motorcycles

FINANCIAL HIGHLIGHTS

• Paid equity capital of approximately USD2 million
• Sales turnover of more than USD10 million (2004)
• Asset base more than USD5 million (to date)

(Industry Presentation)

OWNERSHIP STRUCTURE

The corporation (GMIC) is controlled by the spouses Fabian and Beena Go. The retailing companies (affiliated companies) are controlled by GMIC and GMIC officers.

CORPORATE ORGANIZATION

ORGANIZATIONAL CHART

(Click here to view Granstar Motors & Industrial Orgranizational Chart)

KEY OFFICERS

Fabian A. Go - President

Beena M. Go - Corporate Treasurer

Jovie Mirabel - Corporate Secretary

Rozza Sacdalan - Admin & Finance Officer

Gilbert A. Suribas - Director - Marketing

Dexter M. Belleza - Director - Finance

Atty. Benjo Tesiorna - Director - Personnel Eumir Igaña - AVP Business Development Angelito Benjamin - AVP Operation

EMPLOYEE STRENGTH

More than 400 regular employees

AFFILIATED COMPANIES

DELPHI FAR EAST LTD. CORP.

Distributor of LONCIN brand motorcycles for the Visayas and Mindanao areas. Other products in the pipeline include mini trucks, light trucks, and household appliances.

BIKEWISE MARKETING CORPORATION

Exclusive dealership of GRANSTAR products in Metro Manila Area. Main branches are located in SM Malls (North Edsa, Marilao, Southmall), Tutuban Mall, Caloocan City, Makati City, Las Pinas, Riverbank Mall, Marikina City, Novaliches, Taytay, Binagonan.

CEBU MG MOTORHAUS CORPORATION

Engaged in exclusive dealership of GRANSTAR Motorcycle products in the islands of Cebu, Bohol, and Leyte. Branches are located in Tabunok, Mandaue City, Mactan Island, Tagbilaran City, Talibon, and Ormoc City.

VISMIN MOTORCYCLE DISTRIBUTORS, INC. (VMDI)

Engaged in exclusive dealership of GRANSTAR motorcycle products in the Visayas and Mindanao areas. Existing branches are located in Metro Davao, Digos City, Tagum City, Butuan City, Gen.Santos City, Koronadal City, Kidapawan City, Valencia, and Cagayan De Oro City.

HISTORY

The company (GMIC) was officially incorporated with the Philippine Securities and Exchange Commission on November 11, 1997 with SEC Registration Number A1997-21481.

Business operation started in the first quarter of 1998. The first store was opened in Imus, Cavite complete with in- house consumer financing and full motorcycle service shop. The company was then dealing with existing motorcycle brands including Yamaha.

In 1999, we started our own brand of motorcycles assembled from parts that are mainly imported from China. The products carry the GRANSTAR and LONCIN marks. We have seen that we can improve the quality and performance of the bikes if we assemble them in Manila where critical parts made for Japanese factories are in ample supply.

In the Philippine market, we are poised to take a bigger share in the coming years. Furthermore, there are now arrangements to enter export markets experiencing increasing demand conditions similar to our local market.

THE TECHNICAL COLLABORATION

CHONGQING LONCIN GROUP

LONCIN is the main supplier of motorcycle engines (OEM) to the different motorcycle brands all over China. The company is a major exporter of small engine export turnover reaching well over US$100 million last year (2001).

LONCIN motorcycle is the official motorcycle of the 2008 BEIJING OLYMPICS. LONCIN was recently awarded China's Famous Brand award, the first to be given to an engine manufacturer. The company is ISO 9002 compliant.

FUTURE PLANS

The continued liberalization of the motorcycle industry will mean new ways of doing business. New winners and losers will emerge in the next five to ten years. With this reality in mind, we envision a new kind of industry structure.

Gone are the days where assemblers are different from dealers and retailers. The future winners will have a wide range of competencies from importation, to retailing, to consumer finance. At present, no single company can seize a big share of this new industry.

At GRANSTAR we are moving towards this direction, extending our expertise to retail branch operation and leasing. We are also moving full speed extending business to new markets and related automotive products. By sticking to our vision of providing efficient solutions to the transport needs of our markets, we aspire to be one of the future market leaders.