– –
DENWAY MOTORS LIMITED

駿威汽車有限公司
(Incorporated in Hong Kong under the Companies Ordinance)
website: http://www.denway-motors.com
(Stock Code: 203)
ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2007
INTERIM RESULTS

The directors of Denway Motors Limited (the “Company”) announce that the unaudited
consolidated results of the Company and its subsidiaries (the “Group”) and its share of the results
of jointly controlled entities, associates and non-consolidated subsidiaries for the six months
ended 30 June 2007 together with comparative figures for the corresponding period in 2006 as
follows:
Condensed Consolidated Income Statement
For the six months ended 30 June 2007
Unaudited
Six months ended 30 June
2007 2006

Note HK$’000 HK$’000
Continuing operations:
Turnover 4 395,834 352,036
Cost of sales (354,515) (32,062)
Gross profit 41,319 39,974
Selling and distribution costs (15,044) (4,093)
General and administrative expenses (29,906) (27,489)
Other operating income, net 75,553 7,636
Operating profit 5 71,922 6,028
Finance costs (464) (560)

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Unaudited
Six months ended 30 June
2007 2006

Note HK$’000 HK$’000
Share of profits less losses of:
A jointly controlled entity 6 1,102,872 ,228,08
Other jointly controlled entities 122,268 52,08
Associates 4,846 4,43
Non-consolidated subsidiaries — 49
Profit before taxation 1,301,444 ,300,9
Taxation 7 (3,248) (4,008)
Profit for the period from continuing operations 1,298,196 ,296,
A discontinued operation:
Loss for the period from a discontinued operation — (8,093)
Profit for the period 1,298,196 ,288,08
Attributable to:
Equity holders of the Company 1,293,147 ,288,560
Minority interests 5,049 (542)
1,298,196 ,288,08

Basic earnings/(losses) per share attributable
to equity holders of the Company
— continuing operations 8 17.20 cents 7.9 cents
— a discontinued operation 8 — (0.05) cents
17.20 cents 7.4 cents
Diluted earnings/(losses) per share attributable
to equity holders of the Company
— continuing operations 8 17.17 cents 7.6 cents
— a discontinued operation 8 — (0.05) cents
17.17 cents 7. cents
Interim dividend 9 375,868 375,868

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Condensed Consolidated Balance Sheet
As at 30 June 2007
Unaudited Audited
As at
30 June
As at
3 December
2007 2006

Note HK$’000 HK$’000
ASSETS

Non-current assets
Intangible asset 865,278 864,466
Leasehold land and land use rights 28,808 29,032
Property, plant and equipment 76,550 76,09
Investment properties 45,060 45,060
Interest in a jointly controlled entity 6 6,237,067 5,55,343
Interests in other jointly controlled entities 958,054 844,95
Interests in associates 61,736 56,577
8,272,553 7,467,538

Current assets
Inventories 108,792 83,07
Trade and other receivables 0 729,086 80,00
Current tax recoverable 2,162 ,033
Cash and bank balances
— pledged 27,299 26,393
— others 2,355,506 2,727,423
3,222,845 2,97,867

Total assets 11,495,398 0,385,405
EQUITY

Share capital and reserves attributable
to equity holders of the Company
Share capital 751,736 75,736
Reserves
Proposed final dividend — 45,042
Others 10,478,032 8,935,698
11,229,768 0,38,476

Minority interests 75,024 70,44
Total equity 11,304,792 0,208,97

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Unaudited Audited
As at
30 June
As at
3 December
2007 2006

Note HK$’000 HK$’000
LIABILITIES

Non-current liabilities
Borrowings 2,668 3,38
Deferred tax liabilities 1,030 ,797
3,698 4,935

Current liabilities
Trade and other payables 172,051 47,479
Current tax liabilities 10,962 3,277
Borrowings 3,895 0,797
186,908 7,553

Total liabilities 190,606 76,488
Total equity and liabilities 11,495,398 0,385,405
Net current assets 3,035,937 2,746,34
Total assets less current liabilities 11,308,490 0,23,852

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Notes:
1 General information
The Group is principally engaged in the manufacturing, assembly and trading of motor vehicles, the
manufacturing and trading of automotive equipment and parts in the People’s Republic of China (the “PRC”)
and the manufacturing and trading of audio equipment in Hong Kong.
The Company is a limited liability company incorporated in Hong Kong. The address of its registered office is
Room 80, Citicorp Centre, 8 Whitfield Road, Causeway Bay, Hong Kong.
The Company’s shares are listed on
These condensed consolidated interim financial information was approved for issue on 6 September 2007.
2 Basis of preparation
These condensed interim financial information for the six months ended 30 June 2007 has been prepared in
accordance with Hong Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting” issued by
the Hong Kong Institute of Certified Public Accountants and should be read in conjunction with the annual
financial statements for the year ended 3 December 2006.
3 Accounting policies
The accounting policies adopted are consistent with those of the annual financial statements for the year
ended 3 December 2006. As described in the annual financial statements for the year ended 3 December
2006, the following new standards, amendments to standards and interpretations are mandatory for financial
year ending 3 December 2007.
HKAS (Amendment) Capital Disclosures
HKFRS 7 Financial Instruments: Disclosures
HK(IFRIC)-Int 7 Applying the Restatement Approach under HKAS 29
Financial Reporting in Hyperinflationary Economies
HK(IFRIC)-Int 8 Scope of HKFRS 2
HK(IFRIC)-Int 9 Reassessment of Embedded Derivatives
HK(IFRIC)-Int 0 Interim Financial Reporting and Impairment
The adoption of these new standards, amendments to standards and interpretations has no significant impact
on the Group’s interim results and financial position.
The following new standards, amendments to standards and interpretations have been issued but are not
effective for 2007. Management is currently assessing the impact on the Group’s operations.
HKAS 23 (Revised) Borrowing Costs
HKFRS 8 Operating Segments
HK(IFRIC)-Int HKFRS 2 — Group and Treasury Share Transactions
HK(IFRIC)-Int 2 Service Concession Arrangements

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4 Turnover and segment information
An analysis of the Group’s turnover and results for the period by principal business segments and geographical
segments is as follows:
Principal business segments:
Unaudited
Six months ended 30 June 2007
Trading of
motor vehicles
Manufacturing
and assembly of
motor vehicles
Manufacturing
and trading
of automotive
equipment and
parts
Manufacturing
and trading of
audio equipment
Other
operations Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Turnover 268,812 — 5,717 121,305 — 395,834
Segment operating profit 3,030 — 2,124 8,055 24,687 37,896
Interest income 372 — 30,872 360 2,422 34,026
Operating profit 3,402 — 32,996 8,415 27,109 71,922
Finance costs (464)
Share of profits less losses of:
A jointly controlled entity 1,102,872 1,102,872
Other jointly controlled
entities 122,268 122,268
Associates 520 4,326 4,846
Profit before taxation 1,301,444
Taxation (3,248)
Profit for the period from:
Continuing operations 1,298,196
A discontinued operation —
1,298,196

Depreciation 1,513 — 499 2,215 1,421 5,648
Amortisation — — — — 224 224

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Unaudited
Six months ended 30 June 2006
Trading of
motor vehicles
Manufacturing
and assembly of
motor vehicles
Manufacturing
and trading
of automotive
equipment
and parts
Manufacturing
and trading
of audio
equipment
Other
operations Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Turnover 229,674 — 5,228 7,34 — 352,036
Segment operating profit/(loss) 2,078 — (3,304) 7,96 909 7,644
Interest income 275 — 3,944 83 4,082 8,384
Operating profit 2,353 — 640 8,044 4,99 6,028
Finance costs (560)
Share of profits less losses of:
A jointly controlled entity ,228,08 ,228,08
Other jointly controlled
entities 52,08 52,08
Associates ,047 3,366 4,43
Non-consolidated
subsidiaries 49 49
Profit before taxation ,300,9
Taxation (4,008)
Profit/(loss) for the period
from:
Continuing operations ,296,
A discontinued operation (8,093) (8,093)
,288,08

Depreciation ,25 — 489 2,02 ,208 4,843
Amortisation — — — — 225 225

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Geographical segments:
Unaudited
Six months ended 30 June 2007
Turnover
Segment
operating
profit
Operating
profit
HK$’000 HK$’000 HK$’000
PRC 268,812 4,927 36,106

Hong Kong 121,305 32,742 35,524
Australia 5,717 227 292
395,834 37,896 71,922

Unaudited
Six months ended 30 June 2006
Turnover
Segment
operating
(loss)/profit
Operating
profit/(loss)
HK$’000 HK$’000 HK$’000
PRC 229,674 (,072) 3,33
Hong Kong 7,34 8,870 3,035
Australia 5,228 (54) (40)
352,036 7,644 6,028

5 Operating profit
Expenses included in cost of sales, selling and distribution costs, and general and administrative expenses are
analysed as follows:
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Depreciation of property, plant and equipment 5,648 4,843
Amortisation of leasehold land and land use rights 224 225
Staff costs (including directors’ emoluments) 23,688 2,828

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6 Interest in a jointly controlled entity
This is a Sino-foreign equity joint-venture in which 50% of the equity capital, voting power and profit
sharing is held by a 00% owned subsidiary of the Company. The Group’s investment cost in this company
is HK$54,333,000 (2006: HK$54,333,000). The Group has no unilateral control over the joint venture
company. The joint venture period is 30 years from May 998.
The following amounts represent the Group’s 50% share of assets and liabilities, income and expenses of the
jointly controlled entity:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Assets:
Intangible assets

247,823 27,500

Land use rights 119,581 29,676
Property, plant and equipment 2,529,786 2,39,242
Current assets 7,189,719 6,497,050
10,086,909 9,235,468

Liabilities:
Non-current liabilities (2,668) (2,588)
Current liabilities (3,843,528) (3,678,64)
(3,846,196) (3,680,752)
Minority interests (3,646) (3,373)
6,237,067 5,55,343

Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Income 9,658,663 9,052,678
Expenses (8,555,791) (7,824,597)
Profit for the period 1,102,872 ,228,08

Included in this balance is a goodwill of approximately HK$54,372,000 (2006: HK$49,76,000) arising
from the acquisition of motor vehicle manufacturing business and a production plant in Guangzhou by
the jointly controlled entity.

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Capital commitments
At 30 June 2007, the Group’s share of capital commitments of the jointly controlled entity itself was as
follows:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Authorised but not contracted for 1,014,470 —
Contracted but not provided for — —
7 Taxation
Hong Kong profits tax has been provided at the rate of 7.5% (2006: 7.5%) on the estimated assessable profit
for the period. Taxation on overseas profits has been calculated on the estimated assessable profits for the
period at the rates of taxation prevailing in the countries in which the Group operates.
The amount of taxation (credited)/charged to the condensed consolidated income statement represents:
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Current taxation
Hong Kong profits tax (1,511) 334
PRC enterprise income tax 5,526 3,878
4,015 4,22

Deferred taxation
Hong Kong profits tax (767) (204)
3,248 4,008

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8 Earnings per share
Basic
Basic earnings per share is calculated by dividing the profit attributable to equity holders by the weighted
average number of ordinary shares in issue during the period.
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Profit/(loss) attributable to equity holders of the Company
— continuing operations 1,293,147 ,292,606
— a discontinued operation — (4,046)
1,293,147 ,288,560

Weighted average number of ordinary shares in issue (’000) 7,517,359 7,57,359
Basic earnings/(losses) per share (HK cents) attributable
to equity holders of the Company
— continuing operations 17.20 7.9
— a discontinued operation — (0.05)
17.20 7.4

Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. The Company has share options
outstanding during the period which are potential dilutive ordinary shares. Calculation is done to determine
the number of shares that could have been acquired at fair value (determined as the average daily market share
price of the Company’s shares) based on the monetary value of the subscription rights attached to outstanding
share options. The number of shares calculated as above is compared with the number of shares that would
have been issued assuming the exercise of the share options.

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Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Profit/(loss) attributable to equity holders of the Company
— continuing operations 1,293,147 ,292,606
— a discontinued operation — (4,046)
1,293,147 ,288,560

Weighted average number of ordinary shares in issue (’000) 7,517,359 7,57,359
Adjustments for — share options (’000) 14,843 3,724
Weighted average number of ordinary shares for diluted
earnings per share (’000) 7,532,202 7,53,083
Diluted earnings/(losses) per share (HK cents) attributable
to equity holders of the Company
— continuing operations 17.17 7.6
— a discontinued operation — (0.05)
17.17 7.

9 Interim dividend
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Interim, declared, of HK5 cents (2006: HK5 cents)
per ordinary share (note (a)) 375,868 375,868
(a) At a meeting held on 6 September 2007, the directors declared an interim dividend of HK5 cents (2006:
HK5 cents) per ordinary share for the year ending 3 December 2007. This interim dividend is not
reflected as dividend payable in these condensed interim financial information, but will be reflected as an
appropriation of retained earnings for the year ending 3 December 2007.

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10 Trade and other receivables
Included in this balance are trade receivables of approximately HK$42,429,000 (2006: HK$45,7,000). At 30
June 2007, the ageing analysis of the trade receivables, net of provision, was as follows:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Within 3 months 40,299 42,72
4 – 6 months 738 ,533
7 – 2 months 333 464
Over 2 months 1,059 993
42,429 45,7

The Group allows its trade customers an average credit period of 90 days.
11 Trade and other payables
Included in this balance are trade payables of approximately HK$64,637,000 (2006: HK$33,639,000). At 30
June 2007, the ageing analysis of the trade payables was as follows:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Within 3 months 63,794 33,08
4 – 6 months 16 9
7 – 2 months 52 85
Over 2 months 775 327
64,637 33,639

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INTERIM DIVIDEND

The directors have resolved to pay an interim dividend for the year ending 3 December 2007 of
HK5 cents per share which will be payable on Wednesday, 24 October 2007 to shareholders whose
names appear on the register of members of the Company on Friday, 2 October 2007.
CLOSURE OF REGISTER OF MEMBERS

The register of members of the Company will be closed from Monday, 8 October 2007 to Friday,
2 October 2007, both days inclusive, during which no transfer of shares will be registered. In
order to qualify for the interim dividend, all completed transfer documents accompanied by
relevant share certificates must be lodged with the Company’s share registrars, Tricor Abacus
Limited, at 26th Floor, Tesbury Centre, 28 Queen’s Road East, Wanchai, Hong Kong for
registration not later than 4:30 p.m. on Friday, 5 October 2007.
BUSINESS REVIEW

For the six months ended 30 June 2007, unaudited turnover from the continuing operations
of the Group was approximately HK$395,834,000 (2006: HK$352,036,000); unaudited
interim consolidated profit attributable to equity holders of the Company was approximately
HK$,293,47,000 (2006: HK$,288,560,000), an increase of 0.4% over the same period of last
year. Basic earnings per share from the continuing operations was HK7.20 cents (2006: HK7.9
cents), an increase of 0.% over the same period of last year.
China’s national economy continued to sustain stable growth in the first half of 2007. According
to the statistics of China Association of Automobile Manufacturers, the number of vehicles
produced and sold nationwide in the first half of 2007 amounted to approximately 4,456,700
units and 4,373,800 units respectively, representing an increase of approximately 22.8% and
23.7% respectively, of which the number of sedans produced and sold amounted to approximately
3,5,400 units and 3,084,00 units respectively, representing an increase of approximately 2.4%
and 22.8% respectively.
For the six months ended 30 June 2007, an aggregate of 37,832 units and 33,67 units of
vehicles were produced and sold respectively by the Group through a jointly controlled entity
(hereinafter the “Sedan Company”) which is directly owned by the Company’s wholly-owned
subsidiary, Guangzhou Auto Group Corporation, representing an increase of approximately 9.%
and 7.8% respectively over the same period of last year.
Despite moderate growth in production and sales under intense market competition, the Sedan
Company continued to be a market leader in the respective vehicle categories. Odyssey ranked
first in nationwide premium multi-purpose vehicles market, while Accord ranked second in the
category of single brand name premium sedans.
Guangzhou Automobile Group Component Co., Ltd. and its investments in other jointly
controlled entities (“Guangzhou Component”), in which the Group holds a 49% equity interest,
contributed a 34.6% growth in the Group’s share of its consolidated profits for the six months
ended 30 June 2007 over the same period of last year, exceeding the target set by its board of
directors earlier this year. Their sound operation, fast development of productivity and economic

– 5 –
growth were based on enhanced planning and control, systematic management and efficient
operation so that they could facilitate a sustainable advantageous development, foster new growth
edges and implement key strategic projects in conducting the business.
Other business operations of the Group comprise the trading of vehicles, manufacturing of
automotive equipment and parts and manufacturing and trading of audio equipment. All the
targets set out in the medium-term plan as formulated by the Group have been achieved.
FUTURE PROSPECTS

According to the forecasts of the People’s Bank of China, the Chinese economy will continue to
enjoy steady and fast growth in the second half of 2007 with an estimated annual GDP growth
of 0.8%, the highest in the past 2 years. We are expecting a full-year growth for nationwide car
sales at around 5% which is over 8.23 million units. With the increasing economic scale and the
reducing cost of importing parts and components benefited from a strong Renminbi, the overall
profitability of the automobile industry will also increase. On the other hand, there will be a
mass launching of new models in the second half of 2007. As a result, it is expected that the price
index for passenger cars in China will keep a declining path and the intense competition in the car
market will continue.
The Sedan Company plans to expand its sales and service network and enhance its after-sales
services in the second half of the year in accordance with the decision of its board of directors.
Efforts will be made to strengthen management, maximize cost reductions and improve product
quality. Meanwhile it will seek to raise its competitive strengths by increasing the degree of
domestic production and dedicating its full effort to complete the full-year target for production
and sales set by its board of directors.
On 9 July 2007, Guangzhou Honda Automobile Research and Development Company Limited
was formally established. It is the first automobile research and development institution in China
that is independently funded by a joint venture enterprise and operated by an independent legal
person. Solely funded by the Sedan Company, it is capable of independently carrying out car
development projects including conceptual design, modeling, trial of assembled vehicles and
testing. With the launch of this research and development branch, the Sedan Company becomes
the first joint venture automobile manufacturer in China announcing its strategy on independent
proprietary brands development. It is also the first to make significant investments in establishing
a research and development institution dedicated to the development of proprietary brands. In
addition, the Sedan Company has obtained the government approval on its in-house production
of engines which can well-equip the Sedan Company for further expansion in its production
capacity in the future.
In the next six months, while continuing the development of the sedan plants, Guangzhou
Component will seek to maintain rapid growth through expansion in production scale, cost
reductions, quality enhancements, increase in the degree of domestic production and management
improvements. Yet it will also keep an eye on any opportunities for new projects.
The Group will continue to identify opportunities for development in the automobile industry and
the Board is confident that the Group is well-positioned to grasp such opportunities for further
development, thereby increasing returns for its shareholders.

– 6 –
FINANCIAL SUMMARY

The turnover from the continuing operations of the Group for the period ended 30 June 2007 was
about HK$395,834,000, representing an increase of about 2.4% compared with that of 2006.
On 7 February 2006, the Group announced a connected transaction to dispose the equity interest
in a subsidiary (“the disposed subsidiary”) solely conducting business in the manufacturing and
assembly of motor vehicles. In accordance with Hong Kong Financial Reporting Standards
(“HKFRS”), the relevant items relating to the disposed subsidiary in the income statement in
2006 were classified separately as discontinued operations. The transaction was approved by
independent shareholders on 23 March 2006.
The turnover of the trading of motor vehicles increased by HK$39,38,000 which represented an
increase of about 7.0% in 2007 compared with that of 2006. The operating profit of this segment
increased by HK$,049,000 or an increase of about 44.6%. The turnover of the manufacturing
and trading of automotive equipment and parts increased by HK$489,000 which represented
an increase of about 9.4% in 2007 compared with that of 2006. The operating profit of this
segment increased by HK$32,356,000 in 2007, mainly due to an increase of an interest income.
The turnover of the manufacturing and trading of audio equipment increased by HK$4,7,000
which represented an increase of about 3.6% in 2007, mainly due to an increase of sales orders.
The operating profit of this segment increased by HK$37,000 in 2007, mainly due to effective
cost control. The order on hand of the Group for the business of the manufacturing and trading
of audio equipment was about HK$6,24,000 as at 30 June 2007.
The total borrowings of the Group decreased from about HK$3,935,000 at the end of 2006 to
about HK$6,563,000 at 30 June 2007, mainly due to repayment of the borrowings. The Group
maintained a low ratio of borrowings relative to total equity at about 0.% as at 30 June 2007 and
3 December 2006. The ratio of total liabilities relative to total equity remained at about .7% as
at 30 June 2007 and 3 December 2006. The Group’s borrowings were secured by leasehold land,
buildings and investment properties with a total net book value of about HK$40,625,000 and
bank balances of about HK$27,299,000.
The Group had cash and bank balances of about HK$2,382,805,000 as at 30 June 2007. This
included the net cash used in operating activities of about HK$8,95,000. During the period, the
payment of dividend by the Company was financed by the receipt of cash dividends from the
investment vehicles.
The Group’s general and administrative expenses for the period ended 30 June 2007 were about
HK$29,906,000, representing an increase of about 8.8% compared with that of 2006, mainly due
to larger operating scale of the Group. The finance costs decreased by HK$96,000, mainly due to
reduction of the total borrowings of the Group. The interest cover remained at a high level of 2,806
multiples in 2007 compared to that of 2,323 multiples in 2006. The Group enjoyed the benefit of
currency appreciation of Renminbi, the major operating currency of the Group and resulted in a
significant exchange gains upon realization.
Share of profits from associates were about HK$4,846,000 for the period ended 30 June 2007,
which represented an increase of about 9.8% compared with that of 2006.

– 7 –
The Group shared profits of about HK$22,268,000 from other jointly controlled entities for the
period ended 30 June 2007, which represented an increase of about 34.6% compared with that of
2006, mainly due to the continuous growth of sales orders from major sedan manufacturers in the
PRC.

Share of profit from a jointly controlled entity for the period ended 30 June 2007 remained
the major source of profit for the Group, which contributed about HK$,02,872,000, and
represented a decrease of about 0.2% compared with that of 2006, mainly due to competitive
environment of the sedan market in the PRC.
EMPLOYEES AND REMUNERATION POLICY

As at 30 June 2007, the Group employed approximately ,500 (2006: ,500) staff in the PRC,
Hong Kong and Australia.
The remuneration package adopted by the Group includes discretionary bonus and share options
being granted to eligible staff based on the Group’s performance and individual performance.
Staff training and development programs are conducted on a regular basis.
CORPORATE GOVERNANCE

In 2005, the Board formulated the Denway Code on Corporate Governance (“Denway Code”)
to provide guidance on the Company’s application of corporate governance principles. Denway
Code incorporates all mandatory code provisions and part of the recommended best practices
that the Board considers as reasonable and appropriate to the Company, as set out in the Code
on Corporate Governance (“CG Code”) in Appendix 4 in the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited (“Listing Rules”). It also incorporates
standards for securities transactions by Directors that are not less exacting than the Model Code
for Securities Transactions by Directors of Listed Issuers (“Model Code”) as set out in Appendix
0 of the Listing Rules.
During the six months ended 30 June 2007, the Company complied with all code provisions as set
out in the CG Code.
All directors have confirmed, having made specific enquiries, that the required standard set out in
the Model Code had been complied with throughout the six months period ended 30 June 2007.
The Audit Committee comprises three independent non-executive directors, namely Mr. Lee
Ka Lun, Mr. Cheung Doi Shu and Mr. Fung Ka Pun. The Audit Committee has reviewed with
the management the accounting principles and practices adopted by the Group and discussed
auditing, internal control and financial reporting matters including the review of the unaudited
consolidated interim financial results for the six months ended 30 June 2007.

– 8 –
PURCHASE, SALE OR REDEMPTION OF THE SHARES OF THE COMPANY

The Company has not redeemed any of its shares during the six months ended 30 June 2007.
Neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the
Company’s listed securities during the six months ended 30 June 2007.
LIST OF DIRECTORS

As at the date of this announcement, the board of directors of the Company comprises the
following directors:
Executive Directors:
Mr. Zhang Fangyou, Mr. Lu Zhifeng, Mr. Yang Dadong, Mr. Zeng Qinghong, Mr. Zhang
Baoqing and Mr. Fu Shoujie
Independent Non-Executive Directors:
Mr. Cheung Doi Shu, Mr. Lee Ka Lun and Mr. Fung Ka Pun
Mr. Ding Baoshan resigned as Executive Director on 6 August 2007 and Mr. Fu Shoujie was appointed as
Executive Director on the same date.
By the Order of the Board
Zhang Fangyou
Chairman
Hong Kong, 6 September 2007