1DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
The board of directors (the “Board”) of Deson Development International Holdings
Limited (the “Company”) is pleased to announce the unaudited consolidated results of
the Company and its subsidiaries (collectively the “Group”) for the six months ended
30 September 2007, together with the comparative fi gures for the six months ended 30
September 2006 as follows:
CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 September 2007
2007 2006

Notes HK$’000 HK$’000
(Restated)
REVENUE 3 322,310 227,902

Cost of sales (256,434) (177,737)

Gross profi t 65,876 50,165
Other income and gains 3 12,890 6,639
Fair value gain, net on available
-for-sale investments – 3,053
Gain on disposal of subsidiaries 3,163 –
Administrative expenses (59,821) (52,919)
Finance costs 5 (3,103) (2,554)
Share of profi ts and losses of:
A jointly-controlled entity (238) (9)
Associates 924 857

PROFIT BEFORE TAX 4 19,691 5,232

Tax 6 (12,190) (2,858)

PROFIT FOR THE PERIOD 7,501 2,374

Attributable to:
Equity holders of the parent
7,617 2,629

Minority interests (116) (255)

7,501 2,374

EARNINGS PER SHARE ATTRIBUTABLE TO
ORDINARY EQUITY HOLDERS
OF THE PARENT 7

– Basic 1.33 cent 0.50 cent

– Diluted 1.33 cent 0.50 cent

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED2
CONDENSED CONSOLIDATED BALANCE SHEET

30 September 2007
30 September 31 March
2007 2007

Notes HK$’000 HK$’000
NON-CURRENT ASSETS

Property, plant and equipment 92,852 105,309
Investment properties 8 87,718 80,106
Prepaid land lease payments 12,887 13,012
Interest in a jointly-controlled entity 12,897 11,409
Interests in associates 8,929 7,900
Amounts due from investees 6,240 17,721
Deferred tax assets 262 262

Total non-current assets 221,785 235,719

CURRENT ASSETS

Amounts due from associates 23,024 24,563
Amounts due from minority shareholders – 7
Properties held for sale 9 375,919 395,379
Gross amount due from contract customers 25,872 12,283
Inventories 1,251 8,537
Accounts receivable 10 67,932 68,544
Prepayments, deposits and other receivables 47,117 26,220
Cash and cash equivalents 72,305 53,159
Pledged time deposits 60,562 68,184

Total current assets 673,982 656,876

3DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED)
30 September 2007
30 September 31 March
2007 2007

Notes HK$’000 HK$’000
CURRENT LIABILITIES

Gross amount due to contract customers 67,064 29,104
Accounts payable 11 22,515 38,670
Other payables and accruals 129,999 175,060
Amounts due to associates 643 534
Amounts due to minority shareholders 13,360 11,824
Amounts due to a director 17,390 –
Tax payable 28,595 22,334
Interest-bearing bank and other borrowings 89,022 87,560

Total current liabilities 368,588 365,086

NET CURRENT ASSETS 305,394 291,790

TOTAL ASSETS LESS CURRENT LIABILITIES 527,179 527,509

NON-CURRENT LIABILITIES

Convertible notes 12 15,061 14,856
Interest-bearing bank and other borrowings 71,760 84,162
Deferred tax liabilities 11,750 11,749

Total non-current liabilities 98,571 110,767

Net assets 428,608 416,742

EQUITY

Equity attributable to equity
holders of the parent
Issued capital 13 57,268 57,268
Reserves 368,077 356,303
Equity component of convertible notes 1,259 1,259

426,604 414,830

Minority interests 2,004 1,912

Total equity 428,608 416,742

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Period ended 30 September 2006
Attributable to equity holders of the parent

Equity
component
Share Property Capital Exchange Investment Share of
Issued premium Contributed revaluation Capital redemption fl uctuation revaluation option convertible Reserve Retained Minority Total
capital account surplus reserve reserve reserve reserve reserve reserve notes funds profi ts Total interests equity
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
At 1 April 2006 49,668 96,671 15,262 29,890 (9,121) 9,362 3,162 11,476 799 – 3,260 163,678 374,107 2,275 376,382
Exchange realignment – – – – – – 1,749 – – – – – 1,749 91 1,840
Share of reserves of associates – – – – – – 124 (140) – – – – (16) – (16)
Changes in fair value of
available-for-sale investments – – – – – – – (720) – – – – (720) – (720)
Release upon disposal of
available-for-sale investments – – – – – – – (3,424) – – – – (3,424) – (3,424)

Total income and expense
recognised directly in equity – – – – – – 1,873 (4,284) – – – – (2,411) 91 (2,320)
Profi t for the period – – – – – – – – – – – 2,629 2,629 (255) 2,374

Total income and expenses for the period – – – – – – 1,873 (4,284) – – – 2,629 218 (164) 54
Acquisition of additional interest
in a subsidiary – – – – – – – – – – – – – 346 346
Acquisition of a subsidiary – – – – – – – – – – – – – 2,940 2,940
Exercise of share options 1,100 2,690 – – – – – – (733) – – – 3,057 – 3,057
Issue of shares 1,500 3,502 – – – – – – – – – – 5,002 – 5,002
Equity component of convertible notes – – – – – – – – – 91 – – 91 – 91

At 30 September 2006 52,268 102,863 15,262 29,890 (9,121) 9,362 5,035 7,192 66 91 3,260 166,307 382,475 5,397 387,872

5DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(CONTINUED)
Period ended 30 September 2007
Attributable to equity holders of the parent

Equity
component
Share Property Capital Exchange Investment Share of
Issued premium Contributed revaluation Capital redemption fl uctuation revaluation option convertible Reserve Retained Minority Total
capital account surplus reserve reserve reserve reserve reserve reserve notes funds profi ts Total interests equity
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
At 1 April 2007 57,268 122,563 15,262 28,841 (9,121) 9,362 10,830 1,814 1,081 1,259 3,260 172,411 414,830 1,912 416,742
Exchange realignment – – – – – – 3,740 – – – – – 3,740 291 4,031
Share of reserves of associates – – – – – – 128 289 – – – – 417 – 417

Total income and expense
recognised directly in equity – – – – – – 3,868 289 – – – – 4,157 291 4,448
Profi t for the period – – – – – – – – – – – 7,617 7,617 (116) 7,501

Total income and expense for the period – – – – – – 3,868 289 – – – 7,617 11,774 175 11,949
Disposal of subsidiaries – – – – – – – – – – – – – (83) (83)

At 30 September 2007 57,268 122,563 15,262 28,841 (9,121) 9,362 14,698 2,103 1,081 1,259 3,260 180,028 426,604 2,004 428,608

These reserve accounts comprise the consolidated reserves of HK$368,077,000
(31 March 2007: HK$356,303,000) in the consolidated balance sheet.
The capital reserve as at 1 April 2007 and 30 September 2007 comprises goodwill
arising from the acquisition of subsidiaries prior to 1 April 2002.
The contributed surplus of the Group represents the excess of the nominal value of the
subsidiaries’ shares acquired over the nominal value of the Company’s shares issued in
exchange therefor, pursuant to the Group reorganisation on 21 May 1997.
The reserve funds of the Group include statutory reserves required to be appropriated
from the profi t after tax of the Company’s Mainland China subsidiaries under laws
and regulations of the People’s Republic of China (the “PRC”). The amount of the
appropriation is at the discretion of the PRC subsidiaries’ board of directors.

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED6
CONDENSED CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 September 2007
2007 2006

HK$’000 HK$’000
CASH FLOWS FROM OPERATING ACTIVITIES 20,002 (81,520)
CASH FLOWS FROM INVESTING ACTIVITIES 10,649 (25,029)
CASH FLOWS FROM FINANCING ACTIVITIES (14,687) 89,577

NET INCREASE/(DECREASE) IN CASH AND CASH
EQUIVALENTS 15,964 (16,972)
Cash and cash equivalents at beginning of period 11,306 18,736
Effect of foreign exchange rate change 1,229 705

CASH AND CASH EQUIVALENTS
AT END OF PERIOD 28,499 2,469

ANALYSIS OF BALANCES OF CASH
AND CASH EQUIVALENTS

Cash and bank balances 72,305 54,387
Bank overdrafts, secured (43,806) (51,918)

28,499 2,469

7DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION

These unaudited condensed fi nancial statements have been prepared in accordance
with the applicable disclosure requirements of Appendix 16 of the Rules Governing
the Listing of Securities (the “Listing Rules”) of They have been prepared under the historical cost convention, except
for leasehold buildings and available-for-sale investments, which have been measured
at fair value. These unaudited condensed fi nancial statements should be read in
conjunction with the annual accounts for the year ended 31 March 2007.
The accounting policies adopted are consistent with those followed in the preparation
of the Group’s annual audited fi nancial statements for the year ended 31 March 2007,
except in relation to the following new standards, amendments to standards and
interpretations which are relevant to the Group and are adopted for the fi rst time for
the current period’s fi nancial statements:
HKAS 1 (Amendment) Presentation of Financial Statements: Capital Disclosures
HKFRS 7 Financial Instruments: Disclosures
HK(IFRIC)-Int 8 Scope of HKFRS 2
HK(IFRIC)-Int 9 Reassessment of Embedded Derivatives
HK(IFRIC)-Int 10 Interim Financial Reporting and Impairment
The adoption of these new standards, amendments to standards and interpretations has
no signifi cant impact on the Group’s interim results and fi nancial position.
The following new standard, amendment to standard and interpretation, which are
relevant to the group, have been issued but are not effective for the year ending 31
March 2008 and have not been early adopted by the Group:
HKFRS 8 Operating Segments
HKAS 23 (Revised) Borrowing Costs
HK(IFRIC)-Int 11 HKFRS 2 – Group and Treasury Share Transactions
The adoption of these new standards or interpretation will have no material impact
on the accounts of the Group and will not result in substantial changes to the Group’s
accounting policies.

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED8
2. SEGMENT INFORMATION

Segment information is presented by way of two segment formats: (i) on a primary
segment reporting basis, by business segment; and (ii) on a secondary segment
reporting basis, by geographical segment.
(a) Business segments
The following tables present revenue and profi t/(losses) information for the
Group’s business segments for the six months ended 30 September 2007 and
2006.

For the six months ended 30 September
Property Fitness centre
development and operation and
Construction business investment business related business Consolidated
2007 2006 2007 2006 2007 2006 2007 2006

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
(Restated)
Segment revenue:
Sales to external
customers 189,926 121,539 98,945 73,514 33,439 32,849 322,310 227,902
Other income and gains 897 2,701 1,851 2,229 1,404 87 4,152 5,017

Total 190,823 124,240 100,796 75,743 34,843 32,936 326,462 232,919

Segment results (3,572) (5,664) 27,367 18,272 (10,778) (7,470) 13,017 5,138

Interest income and
dividend income 8,738 1,622
Fair value gain, net on
available-for-sale
investments – 3,053
Gain on disposal of
subsidiaries 3,163 –
Unallocated expenses (2,805) (2,773)
Impairment of goodwill – (51) (5) (51) – – (5) (102)
Finance costs (3,103) (2,554)
Share of profi ts and losses of:
A jointly-controlled entity (238) (9) – – – – (238) (9)
Associates 924 857 – – – – 924 857

Profi t before tax 19,691 5,232
Tax (12,190) (2,858)

Profi t for the period 7,501 2,374

Other segment information:
Depreciation 1,005 807 232 179 2,668 1,619 3,905 2,605
Recognition of prepaid
land lease payments 126 126 – – – – 126 126
Loss on disposal of items
of property, plant and
equipment 2 – – – 77 123 79 123
Impairment/(reversal of
impairment) of
accounts receivable – (490) 145 (606) 222 – 367 (1,096)
Impairment/(reversal of
impairment) of
other receivables (518) 5 1,061 – – – 543 5

9DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
2. SEGMENT INFORMATION (CONTINUED)
(b) Geographical segments
The following table presents revenue for the Group’s geographical segments for
the six months ended 30 September 2007 and 2006.
For the six months ended 30 September
Hong Kong Mainland China Consolidated
2007 2006 2007 2006 2007 2006

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Segment revenue:
Sales to external
customers 113,731 96,301 208,579 131,601 322,310 227,902

3. REVENUE, OTHER INCOME AND GAINS

Revenue, which is also the Group’s turnover, represents the aggregate of gross revenue
earned from construction works and the net amount of maintenance works invoiced,
property development and investment business, and fi tness centre operations and
related business.
An analysis of revenue, other income and gains is as follows:
2007 2006

HK$’000 HK$’000
Revenue
Income from construction contracting and related business 189,926 121,539
Income from property development and investment business 98,945 73,514
Income from fi tness centre operation and related business 33,439 32,849

322,310 227,902

Other income and gains
Bank interest income 1,434 984
Other interest income 494 492
Gross rental income 1,380 1,024
Dividend income from available-for-sale investments 6,810 146
Reversal of impairment of accounts receivable – 1,096
Others 2,772 2,897

12,890 6,639

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED10
4. PROFIT BEFORE TAX

This is arrived at after charging:
2007 2006

HK$’000 HK$’000
Cost of construction contracting 180,001 114,091
Cost of properties sold 66,529 51,953
Cost of inventories sold and service provided 9,904 11,693
Depreciation 3,905 2,605
Recognition of prepaid land lease payments 126 126
Minimum lease payments under operating leases
on land and buildings 4,998 5,318
Loss on disposal of items of property, plant and equipment 79 123
Impairment of goodwill 5 102
Employee benefi ts expense (including directors’ emoluments):
Wages and salaries 20,358 19,500
Pension scheme contributions 570 539
Directors remuneration:
Fee 156 156
Salaries and allowances 2,104 1,787
Pension scheme contributions 57 50

2,317 1,993

5. FINANCE COSTS
2007 2006

HK$’000 HK$’000
(Restated)
Interest on bank loans, overdrafts and other borrowings
wholly repayable within fi ve years 6,552 6,766
Interest on convertible notes 521 290

Total interest 7,073 7,056
Less: Interest capitalised on properties under development (3,970) (4,502)

3,103 2,554

11DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
6. TAX

No Hong Kong profi ts tax has been provided as the Group did not generated any
assessable profi ts arising in Hong Kong during the period (2006: Nil). Taxes on
profi ts assessable elsewhere have been calculated at the rates of tax prevailing in the
jurisdictions in which the Group operates, based on existing legislation, interpretations
and practices in respect thereof.
Land appreciation tax (“LAT”) in Mainland China is levied at progressive rates ranging
from 30% to 60% on the appreciation of land value, being the proceeds of sales of
properties less deductible expenditures including amortisation of land use rights,
borrowing costs and all property development expenditures.
2007 2006

HK$’000 HK$’000
(Restated)
Current – Hong Kong
Under/(over) provision in prior periods (8) 1
Current – Elsewhere
Charge for the period 6,736 2,195
Underprovision in prior periods – 83
LAT in Mainland China 5,462 579

Total tax charge for the period 12,190 2,858

7. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE
PARENT

The calculation of basic earnings per share amounts is based on the profi t for the
period attributable to ordinary equity holders of the parent, and the weighted average
number of ordinary shares in issue during the period, as adjusted to refl ect the share
placement and exercise of share options during the period ended 30 September 2006.
The calculation of diluted earnings per share amounts is based on the profi t for the
period attributable to ordinary equity holders of the parent, adjusted to refl ect the
interest on the convertible notes, where applicable (see below). The weighted average
number of ordinary shares used in the calculation is the number of ordinary shares
in issue during the period, as used in the basic earnings per share calculation, and
the weighted average number of ordinary shares assumed to have been issued at no
consideration on the deemed exercise or conversion of all dilutive potential ordinary
shares into ordinary shares.

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED12
7. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE

PARENT (CONTINUED)
The calculations of basic and diluted earnings per share are based on:
2007 2006

HK$’000 HK$’000
Earnings
Profi t attributable to ordinary equity holders of the parent,
used in the basic earnings per share calculation 7,617 2,629
Interest on convertible notes 521 290

Profi t attributable to ordinary equity holders of the parent
before interest on convertible notes 8,138 2,919

Shares
Weighted average number of ordinary shares in issue during
the period used in the basic earnings per share calculation 572,683,017 520,989,028
Effect of dilution – weighted average number of ordinary shares:
Share options 276,923 335,273
Convertible notes 4,711,538 1,930,351

577,671,478 523,254,652

Because the diluted earnings per share amount is increased when taking
convertible notes into account, the convertible notes had an anti-dilutive
effect on the basic earnings per share for the period and were ignored in the
calculation of diluted earnings per share. Therefore, the diluted earnings per
share amount is based on the profi t for the period attributable to ordinary equity
holders of the parent of HK$7,617,000 (2006: HK$2,629,000) and the weighted
average of 572,959,940 (2006: 521,324,301) ordinary shares.
The share options granted on 23 December 2006 had an anti-dilutive effect on
the basic earnings per share and have not been included in the diluted earnings
per share calculation for the period ended 30 September 2007.
8. INVESTMENT PROPERTIES

30 September 31 March
2007 2007

HK$’000 HK$’000
Carrying amount at 1 April 80,106 –
Additions 7,612 52,226
Fair value adjustment – 27,880

Carrying amount at 30 September/31 March 87,718 80,106

The investment properties are held under long term leases and are situated in
Mainland China.
The Group’s investment properties were revalued on 31 March 2007 by B.I. Appraisals
Limited, independent professionally qualifi ed valuers, at HK$80,106,000 on an open
market, existing use basis.

13DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
9. PROPERTIES HELD FOR SALE

30 September 31 March
2007 2007

HK$’000 HK$’000
Completed properties 215,755 234,938
Properties under development 160,164 160,441

375,919 395,379

As at 30 September 2007, certain completed properties held for sale are pledged to
banks to secure banking facilities granted to the Group.
10. ACCOUNTS RECEIVABLE

The Group’s trading terms with its customers are mainly on credit. The credit period is
generally 90 days for the sale of trading goods and 180 days for the sale of completed
properties held for sale. For retention receivables in respect of construction work
carried out by the Group, the due dates are usually one year after the completion of
the construction works. Each customer has a maximum credit limit. The Group seeks
to maintain strict control over its outstanding receivables. Overdue balances are
reviewed regularly by senior management. In view of the aforementioned and the fact
that the Group’s accounts receivable relate to a large number of diversifi ed customers,
there is no signifi cant concentration of credit risk. Accounts receivable are non-
interest-bearing.
An aged analysis of accounts receivable as at the balance sheet date, based on the
invoice date and net of provision is as follows:
30 September 31 March
2007 2007

HK$’000 HK$’000
Current to 90 days 38,629 43,844
91 to 180 days 10,144 3,803
181 to 360 days 3,847 2,975
Over 360 days 11,193 13,813

63,813 64,435

Retention money receivables 4,119 4,109

Total 67,932 68,544

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED14
11. ACCOUNTS PAYABLE

An aged analysis of accounts payable as at the balance sheet date, based on the
invoice date, is as follows:
30 September 31 March
2007 2007

HK$’000 HK$’000
Current to 90 days 16,966 30,103
91 to 180 days 945 168
181 to 360 days 48 1,436
Over 360 days 4,556 6,963

22,515 38,670

The accounts payable are non-interest-bearing and are normally settled on 30-day
terms.
12. CONVERTIBLE NOTES

On 24 April 2006, the Company issued 4% convertible notes with a total nominal
value of HK$15,750,000. There was no movement in the number of these convertible
notes during the period. The notes have a three-year term and were issued at par,
giving total proceeds of HK$15,750,000. Interest is payable half-yearly in arrears
at a nominal annual interest rate of 4%. Each note is convertible at any time from
the fi rst anniversary of the issue date to the thirtieth day prior to the maturity date,
at the holder’s option, into 35,000,000 ordinary shares of the Company at an initial
conversion price of HK$0.45 per share.
The fair value of the liability component of the convertible notes was determined,
upon issuance, using the prevailing market interest rate for similar debt without a
conversion option of 7% and is carried as a long term liability. The remainder of the
proceeds was allocated to the conversion option that is recognised and included in
shareholders’ equity.
The convertible notes issued in last period have been split as to the liability and equity
components, as follows:
30 September 31 March
2007 2007

HK$’000 HK$’000
Nominal value of convertible notes issued 15,750 15,750
Equity component (1,259) (1,259)

Liability component at the issuance date 14,491 14,491

Liability component
As at 1 April 14,856 14,491
Interest expense 521 955
Interest paid (316) (590)

Liability component as at 30 September/31 March 15,061 14,856

15DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
13. SHARE CAPITAL

Shares
30 September 31 March
2007 2007

HK$’000 HK$’000
Authorised:
1,500,000,000 (31 March 2007: 1,500,000,000)
ordinary shares of HK$0.10 each 150,000 150,000

Issued and fully paid:
572,683,017 (31 March 2007: 572,683,017)
ordinary shares of HK$0.10 each 57,268 57,268

Share options
Details of the Company‘s share option scheme and the share options issued under the
scheme are included in the section headed “Share Option Scheme”.
14. OPERATING LEASE COMMITMENTS

The Group leases certain of its offi ce properties under operating lease arrangements,
with leases negotiated for terms ranging from one to fi ve years.
At 30 September 2007, the Group had total future minimum lease payments under
non-cancellable operating leases falling due as follows:
30 September 31 March
2007 2007

HK$’000 HK$’000
Within one year 381 9,425
In the second to fi fth years, inclusive 461 40,341
After fi ve years – 31,909

842 81,675

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED16
15. RELATED PARTY TRANSACTIONS

(a) In addition to the transactions and balances detailed elsewhere in these
fi nancial statements, the Group had the following material transactions with
related parties during the period:
2007 2006

Notes HK$’000 HK$’000
Management fees received
from associates (i) 392 388

Interest income from
jointly-controlled entity (ii) 263 324

Notes:
(i) The management fees were charged by reference to costs incurred for
services provided by the Group.
(ii) The interest income from jointly-controlled entity was charged at
the prime rate plus 1% per annum on an amount due from it of
HK$7,178,000 (2006: HK$7,178,000).
(b) Outstanding balances with related parties:
Details of the Group’s amounts with its jointly-controlled entity and associates
as at the balance sheet date are included in the fi nancial statements; and
(c) Compensation of key management personnel of the Group:
The key management personnel of the Group are the directors of the Company.
Details of their remuneration are disclosed in note 4 to the fi nancial statements.
16. POST BALANCE SHEET EVENTS

On 27 November 2007, Deson Development Limited, an indirectly wholly owned
subsidiary of the Company entered into a provisional agreement with Asian Time
Investment Limited, for the disposal of 13th and 14th Floor of Max Share Centre
situated in Hong Kong at a total consideration of HK$27,178,800.
As the applicable percentage ratio for the disposal calculated pursuant to Rule
14.07(4) of the Listing Rules exceeds 5% but is less than 25%, the disposal constitutes
a discloseable transaction for the Company under Chapter 14 of the Listing Rules.

17DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
DIVIDENDS

The Directors do not recommend the payment of an interim dividend in respect of the
six months ended 30 September 2007 (2006: Nil).
BUSINESS REVIEW

The Group’s turnover for the period was HK$322,310,000 which represented an
increase of 41% as compared with last period. The net profi t attributable to equity
holders of the Company amounted to approximately HK$7,617,000 representing an
increase of 190% as compared with last period. Earning per share is approximately
HK1.33 cent.
The Group’s major business segment during the period comprises (i) construction,
as a main contractor, as well as the provision of contracting intelligent building
engineering, and electrical and mechanical (“E&M”) services; (ii) property development
and investment; and (iii) the operation of fi tness club and trading of fi tness equipment
business.
During the period, the Group completed projects such as the main contractor for
construction of four residential houses at 10 Pollock’s Path (formerly Sky Height), the
Peak, Hong Kong and fi tting out works for Club Monaco at New World Tower, Hong
Kong.
More to note, during the period, the Group sold certain units in Phase I and Phase III of
Asian Villas City Square, Haikou, Hainan Province, and certain apartments and villas
in Parkview Garden, Shanghai, which contributed a meaningful turnover and profi t to
the Group. The Group is also benefi t from the increase trend of property market price
in PRC. The enthusiastic sales response together with the upward property price trend
were demonstrated by the 50% increase in the segment results as compared to last
period.
On 25 September 2007, the Group entered into a sales and purchase agreement with
Ideal Choice Holdings Limited, a company wholly owned by Mr. Tjia Boen Sien,
the Managing Director and Deputy Chairman and a substantial shareholder of the
Company, in relation to the disposal of 100% interest in Fitness Concept Limited
and the related shareholder’s loan, at a total consideration of HK$6,000,000. Fitness
Concept Limited and its’ subsidiaries are principally engaged in the operation of fi tness
club and trading of fi tness equipment business. Upon the completion of the disposal
on 30 September 2007, the only business of the Group in relation to the operation of
fi tness club and trading of fi tness equipment business is that of ?p"
!, which is an indirectly wholly owned subsidiary of the Company and engaged in
the operation of fi tness club business in Chengdu, PRC. For the six months ended 30
September 2007, the fi tness club and related business generated turnover in the amount
of HK$33 million to the Group.

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED18
FINANCIAL REVIEW

Turnover
During the six months’ ended 30 September 2007, the Group’s turnover amounted
to HK$322 million, increased by 41% as compared to the same period last year, the
impetus behind such growth can largely be traced to certain new and substantial
projects under the construction and contracting segment, such as main contractor for
redevelopment of Good Hope School at Ngau Chi Wan, Hong Kong with a contract
value of HK$169 million and decoration work for a hotel at Beijing, PRC have
commenced and generated meaningful turnover to the Group. Turnover generated
from construction contracting business, property development and investment business
and fi tness club business amounted to approximately HK$190 million, HK$99 million
and HK$33 million respectively, which represent increase by 56%, 35% and 2%
respectively as compared to the last period.
Gross profi t margin
During the period under review, the Group’s gross profi t margin was approximately
20%, down by 2% as compared to last period’s 22%, which refl ects the challenging
operating environment of the Group of rising production cost and keen competition in
the construction contracting and related business.
Liquidity and fi nancial resources
As at 30 September 2007, the Group had total assets of HK$895,767,000 and
current liabilities, long term liabilities, shareholders’ equity and minority interests of
HK$368,588,000, HK$98,571,000, HK$426,604,000 and HK$2,004,000, respectively.
The gearing ratio for the Group is, at 19% (31 March 2007: 21%). It was
calculated based on the long term borrowings of HK$98,571,000 (31 March 2007:
HK$110,767,000) and long term capital of HK$527,179,000 (31 March 2007:
HK$527,509,000).
Capital expenditure
Total capital expenditure for the period was approximately HK$12 million, which are
mainly used in purchase of building, leasehold improvements, equipment in connection
with the property investment and fi tness club businesses in PRC.
Contingent liabilities
At the balance sheet date, there were no signifi cant contingent liabilities for the Group.
Treasury policies
The Director will continue to follow a prudent policy in managing its cash balances
and maintain a strong and healthy liquidity to ensure that the Group is well placed
to take advantage of growth opportunities for the business. In view of the expected
development for the property development projects in Kaifeng and Huizhou, PRC, the
Group will take consideration on the Renminbi fund planning to adequately fi nance
these projects. Interest for the current bank borrowings were mainly on fl oating rate
basis and the bank borrowings were principally denominated in Hong Kong dollars and
Renminbi, hence, there is no signifi cant exposure to foreign exchange rate fl uctuations.

19DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
EXCHANGE RISK EXPOSURE

The Group’s receivables and payables were denominated mainly in Hong Kong dollar
and Renminbi. Since some of the Group’s business are based in the PRC, the continuing
appreciation of RMB inevitably increase the development cost and operating cost,
however, the fl uctuation in RMB is still mild for the time being and the PRC operation
is naturally hedged by the future RMB receivables, therefore the management does not
foresee any signifi cant foreign currency exposure.
PROSPECTS

Construction business (including E&M works)
The Group will uphold an on-going parallel development of its construction business
(including E&M works) in both the PRC and Hong Kong. With its proven track records
and adequate expertise in the main contracting business, in April 2006, the Group
had been promoted from “List of Approved Contractors for Public Works under Group
C (on probation) of the Building Category under Environment, Transport and Works
Bureau of the HKSAR” to “List of Approved Contractors for Public Works under Group
C of the Building Category under Environment, Transport and Works Bureau of the
HKSAR”. Together with the license in Group II under the “Turn-key Interior Design and
Fitting-out Works” under the “List of Approved Suppliers of Materials and Specialist
Contractors for Public Works” and the 11 licenses held under the “List of Approved
Suppliers of Materials and Specialist Contractors for Public Works under Environment,
Transport and Works Bureau of the Government of the HKSAR”, enables the Group to
take an active part in the construction business development (including E&M works).
During the period, new projects such as fi tting out works for a residential house at
Pollock’s Path, Hong Kong, interior fi tting out works for De Beers at Landmark, Hong
Kong, renovation of external wall fi nishing at Saint Joseph’s Catholic Church, Hong
Kong, building services installation for the construction of a primary school in Sham
Tseng, Hong Kong, air-conditioning and electrical works for Ocean Park redevelopment
project – Astounding Asia, Hong Kong, renovation for a 7-storey hotel in Beijing, PRC,
and renovation for a hospital in Beijing, PRC were granted. As at the date of this report,
the Group has contracts on hand with a total contract sum of over HK$794 million.
Property development and investment
Asian Villas City Square, Haikou, Hainan Province is developing into a residential and
commercial complex with a total gross fl oor area of approximately 130,000 sq. metres.
Construction is on schedule, up to now, Phase I, II and III were completed and Phase IV
are under construction. It is expected the whole development will be completed by the
mid of 2008. Up to the date of this report, the total contract sum achieved amounted to
approximately RMB206 million.

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED20
PROSPECTS (CONTINUED)
Property development and investment (Continued)
On 9 June 2005, the Group has been granted the land use rights of a development
site in Long Ting district of the city of Kaifeng. The Directors intend to develop a
commercial complex on the site with an estimated gross fl oor area of approximately
177,000 sq. metres. Up to now, the development is at the removal and demolish stage,
processing smoothly, and the removal and demolish is expected to be completed
by January 2008. In April 2007, the Group was granted another land use rights of a
development site adjacent to the original site in Long Ting District, with a site area of
approximately 20,000 sq. metres, the Directors intend to develop this additional site
together with the original site.
On 2 November 2006, the Group obtained the land use rights of a development site in
Huidong province of PRC. The Directors intend to develop residential villas on the site
with an estimated gross fl oor area of approximately 220,796 sq. metres. It is expected
the development will soon be commenced.
The Group had purchased a hotel in Haikou, the capital of Hainan Province, PRC
through the acquisition of a subsidiary. The hotel has a gross fl oor area of 22,109.83
square metres and is under decoration. The Group intends to lease out the hotel to
generate recurring rental income. In view of the great potential which Hainan Province
has as an upscale tourist destination, the Directors consider the growth prospects to be
promising.
Although the residual effect of the macro-economic tightening measures have added
uncertainties to the growth of the PRC economy, the Directors believe that the austerity
measure had only a moderate and short term impact on the property market in PRC.
With strong sustained economic growth in PRC, coupled with the constant appreciation
of RMB, the PRC property market offers tremendous opportunities, and the Group will
continue to place emphasis on strengthening the property development and investment
business, and may acquire additional land bank to richen its land reserve, specifi cally
in the second and third tier cities in PRC which the market trend and growth potential is
consistently increasing, however, the Group has no specifi c investment plan in relation
to any particular project currently.
Noteworthy is the fact that Directors believe the hosting of the World Expo in 2010
which will have a positive impact on the PRC property market and the property
development and investment segment will continue to provide a sizable contribution to
the Group’s operating results in the coming years.
HUMAN RESOURCES

As at 30 September 2007, the Group has 212 employees, 96 of whom were based in
the PRC. The total employee benefi ts expenses including directors’ emoluments for the
period under review amounted to HK$21 million as compared to HK$20 million in last
period.
The remuneration policy and package of the Group’s employees are reviewed and
approved by the directors. Apart from pension funds, discretionary bonus and share
options are linked to individual performance as recognition of and reward for value
creation.

21DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
CONNECTED AND DISCLOSEABLE TRANSACTION

On 25 September 2007, Grace Profi t Investments Limited, a wholly owned subsidiary of
the Company entered into a sales and purchase agreement with Ideal Choice Holdings
Limited, a company wholly owned by Mr. Tjia Boen Sien, the Managing Director and
Deputy Chairman and a substantial shareholder of the Company, for the disposal of
it’s entire interest in Fitness Concept Limited and related shareholder’s loan, at a total
consideration of HK$6,000,000. Upon completion of the agreement, Fitness Concept
Limited and its’ subsidiaries ceased to be subsidiaries of the Company. The transaction
was completed on 30 September 2007.
Given that Mr. Tjia is the Managing Director and Deputy Chairman of the Company
and has an approximately 45.79% equity interest in the Company at that time, Mr.
Tjia is a connected person of the Company within the meaning of the Listing Rules.
The transaction therefore constitutes a connected transaction of the Company. As
each of the applicable percentage ratios of the transaction was more than 2.5% but
less than 25% and the total consideration involved was less than HK$10,000,000,
pursuant to Rule 14A.32 of the Listing Rules, the transaction was exempted from the
independent shareholders’ approval requirement and was only subject to the reporting
and disclosure requirements of the Listing Rules. The transaction also constituted a
discloseable transaction for the Company under the Listing Rules.
COMMITMENTS

The Group had the following capital commitments at the balance sheet date:
30 September 31 March
2007 2007

HK$’000 HK$’000
Contracted, but not provided for, in respect of:
Renovation cost of investment properties 9,558 11,007
Authorised, but not contracted for, in respect of:
Renovation cost of investment properties 13,080 17,410

22,638 28,417

CHARGES ON GROUP ASSETS

The Group’s banking facilities are secured by:
(i) the pledge of certain of the Group’s leasehold buildings situated in Hong Kong
and Mainland China of HK$75,422,000 (31 March 2007: HK$77,356,000).
(ii) the pledge of the Group’s leasehold lands situated in Hong Kong of
HK$13,136,000 (31 March 2007: HK$13,262,000).
(iii) the pledge of the Group’s time deposits of HK$60,562,000 (31 March 2007:
HK$68,184,000).
(iv) the pledge of the Group’s completed properties for sale of HK$31,115,000 (31
March 2007: HK$50,471,000).

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED22
SHARE OPTION SCHEME

On 14 August 2002, the share option scheme of the Company adopted on 21 May 1997
ceased to operate and a new share option scheme (the “Scheme”) was adopted on the
same date to comply with the requirements of Chapter 17 of the Listing Rules regarding
share option schemes of a company. The options granted under the old scheme will
remain in force and effect.
The Company operates the Scheme for the purpose of providing incentives and rewards
to eligible participants who contribute to the success of the Group’s operations. Eligible
participants of the Scheme include the Company’s directors, including independent
non-executive directors, the Company’s shareholders and other employees of the
Group. The Scheme became effective on 14 August 2002 and, unless otherwise
cancelled or amended, will remain in force for 10 years from that date.
The maximum number of unexercised share options currently permitted to be granted
under the Scheme is an amount equivalent, upon their exercise, to 10% of the shares
of the Company at the adoption date of the Scheme. The maximum number of shares
issuable under share options to each eligible participant in the Scheme within any 12-
month period, is limited to 1% of the shares of the Company in issue at any time. Any
further grant of share options in excess of this limit is subject to shareholders’ approval
in a general meeting.
Share options granted to a director, chief executive or substantial shareholder of the
Company, or to any of their associates, are subject to approval in advance by the
independent non-executive directors. In addition, any share options granted to a
substantial shareholder or an independent non-executive director of the Company, or
to any of their associates, in excess of 0.1% of the shares of the Company in issue at
any time or with an aggregate value (based on the price of the Company’s shares at the
date of the grant) in excess of HK$5 million, within any 12-month period, are subject to
shareholders’ approval in advance in a general meeting.
The offer of a grant of share options may be accepted within 30 days from the date of
the offer, upon payment of a nominal consideration of HK$1 in total by the grantee. An
option may be exercised under the Scheme at any time during a period not exceeding
10 years after the date when the option is granted and expiring on the last date of such
period.
The exercise price of the share options is determinable by the directors, but may not be
less than the highest of (i) the Stock Exchange closing price of the Company’s shares on
the date of the offer of the share options; (ii) the average Stock Exchange closing price
of the Company’s shares for the fi ve trading days immediately preceding the date of the
offer; and (iii) the nominal value of an ordinary share.
Share options do not confer rights on the holders to dividends or to vote at the
shareholders’ meetings.
At 31 March 2007, the Company had 11,250,000 share options outstanding under the
Scheme.

23DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
SHARE OPTION SCHEME (CONTINUED)
The following share options were outstanding under the Scheme during the period:
Price of the
Number of share options Company’s

At Granted Exercised At Exercise price shares
Name or category 1 April during during 30 September At date of grant of share at grant date
of participant 2007 the period the period 2007 of share options

Exercise period of share options options

of options

HK$ HK$
per share per share
Directors
Ho Chung Tai, Raymond 400,000 – – 400,000 4 March 2006 5 March 2006 0.34 0.34
to 4 March 2008
Siu Man Po 400,000 – – 400,000 4 March 2006 5 March 2006 0.34 0.34

to 4 March 2008
800,000 – – 800,000

Other employees, in aggregate 23 December 27 December 2006 0.6 0.58
10,450,000 – – 10,450,000 2006 to 26 December 2007

10,450,000 – – 10,450,000

Total 11,250,000 – – 11,250,000


The vesting period of the share options is from the date of grant until the
commencement of the exercise period.

The exercise price of the share options is subject to adjustment in the case of rights or
bonus issues, or other similar changes in the Company’s share capital.

The price of the Company’s shares disclosed as at the date of grant of the share options
is the Stock Exchange closing price on the trading day immediately prior to the date of
grant of the options.
At the balance sheet date, the Company had 11,250,000 share options outstanding
under the Scheme. The exercise in full of the remaining share options would, under
the present capital structure of the Company, result in the issue of 11,250,000
additional ordinary shares of the Company, representing approximately 2.0 % of the
Company’s shares in issue as at the balance sheet date, and additional share capital of
HK$1,125,000 and share premium of HK$5,417,000 (before issue expenses).

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED24
DIRECTORS’ INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING
SHARES

At 30 September 2007, the interests and short positions of the directors in the share
capital and share option of the Company or its associated corporations (within the
meaning of Part XV of the Securities and Futures Ordinance (the “SFO”)), as recorded in
the register required to be kept by the Company pursuant to Section 352 of the SFO, or
as otherwise notifi ed to the Company and the Stock Exchange pursuant to Divisions 7
and 8 of Part XV of the SFO (including the interests and short positions which he would
be deemed or taken to have under Section 344 and 345 of the SFO) or pursuant to
the Model Code for Securities Transactions by Directors of Listed Companies, were as
follows:
Long positions in ordinary shares of the Company:
Number of shares held, capacity and nature of interest

Percentage of
Directly Through the Company’s
benefi cially controlled issued
Name of director owned corporation Total share capital
Mr. Tjia Boen Sien 35,984,400 226,250,000 262,234,400 45.79
Mr. Wang Jing Ning 12,839,600 – 12,839,600 2.24
Mr. Wang Ke Duan 268,960 – 268,960 0.05
Mr. Siu Man Po 180,000 – 180,000 0.03

Sparta Assets Limited (“Sparta Assets”), a company incorporated in the British
Virgin Islands and wholly owned by Mr. Tjia Boen Sien, is benefi cially interested in
226,250,000 ordinary shares of the Company.
The interests of the directors in the share options of the Company are separately
disclosed in the section headed “Share option scheme”.
Save as disclosed above and the section head “Share option scheme”, none of the
directors had registered an interest or short position in the shares, underlying shares or
debentures of the Company or any of its associated corporations that was required to be
recorded pursuant to Section 352 of the SFO, or as otherwise notifi ed to the Company
and the Stock Exchange pursuant to the Model Code for Securities Transactions by
Directors of Listed Companies.

25DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
DIRECTORS’ RIGHTS TO ACQUIRE SHARES OR DEBENTURES
Save as disclosed under the section headed “Directors interests and short positions in
shares and underlying shares” above and “Share option scheme”, at no time during
the period were rights to acquire benefi ts by means of the acquisition of shares in or
debentures of the Company granted to any director or their respective spouse or minor
children, or were any such rights exercised by them; or was the Company or any of its
subsidiaries a party to any arrangement to enable the directors to acquire such rights in
any other body corporate.
SUBSTANTIAL SHAREHOLDERS’ AND OTHER PERSON’S INTERESTS AND SHORT
POSITIONS IN SHARES AND UNDERLYING SHARES

At 30 September 2007, the following interests of 5% or more of the issued share capital
and share options of the Company were recorded in the register of interests required to
be kept by the Company pursuant to Section 336 of the SFO:
Long positions:
Number of
underlying Percentage
shares (under of the
Number of equity Company’s
Capacity and ordinary derivatives of Aggregate issued share
Name nature of interest shares held the Company) interest capital
Sparta Assets Directly benefi cially owned 226,250,000 — 226,250,000 39.51
Mr. Tjia Boen Sien Interests of controlled 226,250,000 — 226,250,000 39.51
(Note 1) corporation
Directly benefi cially owned 35,984,400 — 35,984,400 6.28
Penta Investment Investment manager 97,260,000 35,000,000 132,260,000 23.09
Advisers Limited
(“Penta”) (Note 2)
Mr. John Zwaanstra Interests of controlled 97,260,000 35,000,000 132,260,000 23.09
(Note 3) corporation
Penta Japan Fund, Interests of controlled 66,897,000 23,333,333 90,230,333 15.76
Ltd. (“Penta Japan”) corporation
(Note 4)
Mr. Todd Zwaanstra Trustee (other than a 66,897,000 23,333,333 90,230,333 15.76
(Note 5) bare trustee)
Mercurius GP LLC Founder of a 66,897,000 23,333,333 90,230,333 15.76
(“Mercurius”) discretionary trust
(Note 6)

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED26
SUBSTANTIAL SHAREHOLDERS’ AND OTHER PERSON’S INTERESTS AND SHORT
POSITIONS IN SHARES AND UNDERLYING SHARES (CONTINUED)
Notes:
1. Sparta Assets, a company incorporated in the British Virgin Islands and wholly owned
by Mr. Tjia Boen Sien, is benefi cially interested in 226,250,000 ordinary shares of the
Company.
2. These include (i) an interest in 97,260,000 Shares and (ii) a derivative interest in
35,000,000 shares.
3. Mr. John Zwaanstra has declared the interest and derivative interest in the same shares
in which Penta has declared the same interests as Penta is his controlled corporation.
4. These include (i) an interest in 66,897,000 shares and (ii) a derivative interest in
23,333,333 shares.
5. Mr. Todd Zwaanstra has declared the interest and derivative interest in the same
Shares in which Penta Japan has declared the same interests pursuant to his capacity as
trustee of the Mercurius Partners Trust and as Penta Japan is his controlled corporation.
6. Mercurius has declared the interest and derivative interest in the same Shares in which
Penta Japan has declared the same interests in its capacity as founder of Mercurius
Partners Trust.
Save as disclosed above, no person, other than the directors of the Company, whose
interests are set out in the section “Directors’ interests and short positions in shares and
underlying shares” above, at 30 September 2007, had registered an interest or short
position in the shares of the Company that was required to be recorded pursuant to
Section 336 of the SFO.
PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES

Neither the Company, nor any of its subsidiaries purchased, redeemed or sold any of
the Company’s listed securities during the period.
CORPORATE GOVERNANCE

In the Corporate Governance Report which was published in our annual report for
the year ended 31 March 2007, the Company’s corporate governance practices are
based on the principles and the code provisions as set out in the Code on Corporate
Governance Practices (the “Code”) contained in Appendix 14 of the Listing Rules. The
Directors consider that the Company has complied with the Code throughout the six
months ended 30 September 2007, with the following derivations:

27DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED
CORPORATE GOVERNANCE (CONTINUED)
Code Provision A4.1
Code Provision A.4.1 stipulates that non-executive directors should be appointed for a
specifi c term, subject to re-election.
The independent non-executive directors are not appointed for a specifi c term.
However, all non-executive directors are subject to the retirement and rotation
requirements at least once every three years in accordance with the Company’s Bye-
Laws. As such, the Board considers that suffi cient measures have been taken to ensure
that the Company’s corporate governance practices are comparable with those in the
Code.
MODEL CODE FOR SECURITIES TRANSACTIONS

The Company has adopted the Model Code for Securities Transactions by Directors of
Listed Issuers (the “Model Code”) as set out in Appendix 10 to the Listing Rules.
Specifi c enquiry has been made of all the directors and the directors have confi rmed
that they have complied with the Model Code throughout the six months ended 30
September 2007.
The Company has adopted the same Model Code for securities transactions by
employees who are likely to be in possession of unpublished price-sensitive information
of the Company.
No incident of non-compliance of the Model Code by the relevant employees was
noted by the Company.
REMUNERATION COMMITTEE

The Company has a remuneration committee which was established in accordance
with the requirements of the Code for the purpose of reviewing the remuneration policy
and fi xing the remuneration packages for all Directors. The remuneration committee
currently comprises two executive Directors, namely Mr. Tjia Boen Sien, Mr. Wang
Jing Ning, and three independent non-executive Directors, namely Dr. Ho Chung Tai,
Raymond, Mr. Siu Man Po and Mr. Wong Shing Kay, Oliver. Mr. Tjia Boen Sien is the
Chairman of the committee.

DESON DEVELOPMENT INTERNATIONAL HOLDINGS LIMITED28
AUDIT COMMITTEE

The Company has an audit committee which was established in accordance with the
requirements of the Code for the purpose of reviewing and providing supervision over
the Group’s internal controls and fi nancial reporting matters including the review of
the unaudited interim results for the six months ended 30 September 2007. The audit
committee comprise of three independent non-executive directors of the Company,
namely Dr. Ho Chung Tai, Raymond, Mr. Siu Man Po and Mr. Wong Shing Kay, Oliver.
Mr. Wong Shing Kay, Oliver is the Chairman of the committee.
BOARD OF DIRECTORS

As at the date of this report, the executive Directors of the Company are Mr. Wang
Ke Duan, Mr. Tjia Boen Sien, Mr. Wang Jing Ning, Mr. Keung Kwok Cheung, and Mr.
Ong Chi King, and the independent non-executive Directors are Dr. Ho Chung Tai,
Raymond, Mr. Siu Man Po, and Mr. Wong Shing Kay, Oliver.
On behalf of the board of directors
Tjia Boen Sien
Managing Director and Deputy Chairman
Hong Kong, 27 December 2007