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2 Corporate Information
3 Highlights
4 Chairman’s Statement
6 GMD’s Report
13 Corporate Governance
16 Directors’ Interests and Short Positions in Shares,
Underlying Shares and Debentures
20 Interests and Short Positions of Substantial Shareholders
21 Other Information
22 Condensed Consolidated Balance Sheet
24 Condensed Consolidated Income Statement
25 Condensed Consolidated Statement of Changes in Equity
26 Condensed Consolidated Cash Flow Statement
27 Notes to Condensed Consolidated Financial Information
50 Information for Investors
Contents

Non-executive Directors
Dr. Victor FUNG Kwok King (Chairman)
John Estmond STRICKLAND

Dr. FU Yu Ning

Prof. LEE Hau Leung

Dr. William FUNG Kwok Lun
William Winship FLANZ
Jeremy Paul Egerton HOBBINS
LAU Butt Farn

Independent Non-executive Director
Group Chief Compliance Officer
James SIU Kai Lau
Company Secretary
YUEN Ying Kwai
Legal Advisors
Johnson Stokes & Master
17th Floor, Prince’s Building, 10 Chater Road
Hong Kong
Registered Office
Clarendon House
2 Church Street
Hamilton HM 11
Bermuda
Principal Place of Business
15th Floor, LiFung Centre
2 On Ping Street
Siu Lek Yuen, Shatin, N.T.
Hong Kong
Executive Directors
Benedict CHANG Yew Teck (Group Managing Director)
Joseph Chua PHI (Chief Operating Officer)
Rajesh Vardichand RANAVAT
Chief Financial Officer
Srinivasan PARTHASARATHY
Qualified Accountant
Simon CHAN Kam Chiu
Principal Bankers
The Hongkong and Shanghai Banking Corporation Limited
Standard Chartered Bank (Hong Kong) Limited
Auditor
PricewaterhouseCoopers
Certified Public Accountants
22nd Floor, Prince’s Building, Central
Hong Kong
Corporate Information
2

Six months ended 30 June
2007 2006 Change
US$ million US$ million %
Revenue 583.15 467.45 24.8%
Core operating profit 10.68 8.58 24.4%
Operating profit 22.86 8.58 166.3%
Profit attributable to shareholders 16.49 8.54 93.1%
Earnings per share US5.32 cents US2.76 cents 92.8%
Earnings per share (equivalent to) HK41.57 cents HK21.40 cents
Interim dividend per share HK12.00 cents HK7.00 cents 71.4%
. As a result of business growth and gains recorded from the second tranche divestment of Slumberland Asia Pacific
shares, profit attributable to shareholders in the first half of 2007 registered solid increase of 93.1% against same period
in 2006.
. Acquisitions of two Fast Moving Consumer Goods (FMCG) distribution companies in East Malaysia announced in April
were completed in May and July. Another acquisition was announced in August of an apparel and footwear logistics
company in the UK to establish our foothold in Europe.
. Achieved commendable results in business development with over 50 new contracts secured in the first half of 2007, far
exceeding the run rate experienced in the past few years.
. Efforts are underway to upgrade the efficiency and IT platform of the newly acquired logistics operations in the US.
Investments made in this year are expected to position the US operations for strong growth in 2008 and onwards.
. Commenced planning process for the next Three-Year Strategic Plan 2008-2010 to determine the direction and key
transformational goals for the future development of the Group.
Highlights
3Integrated Distribution Services Group Limited Interim Report 2007

Dear Shareholders,
I am pleased to report the interim results of Integrated Distribution Services Group Limited (the ‘‘Company’’) and its subsidiaries
(collectively the ‘‘Group’’) for the six months ended 30 June 2007.
The overall economic conditions in Asia, especially China, remain favorable to IDS. Strong growth rates were recorded in most
markets for the first half of 2007. In China, GDP growth reached a 12-year high of 11.9% in the second quarter. Easing inflation
in ASEAN markets boosted consumption and helped maintain a buoyant economy. While the favorable conditions are expected
to continue in the second half of 2007, the operating environment is not without challenges.
Thailand was beset by political uncertainty and consumption growth was recently at its weakest in six years due to faltering
consumer sentiment. Economic growth was expected to remain relatively slow for the rest of 2007. Inflation in China exceeded
the official target and there are concerns that consumption may be affected due to measures taken by the Government to deal
with over-heating in certain sectors of the economy. Further, the impact of the sub-prime mortgage fallout in the US continues
to be an uncertainty. If the US economy proves to be weaker than expected, it could perpetuate a slow down of growth in the
region.
While these economic developments may lead to future challenges, the Group’s performance in the last six months has been
promising. Revenue recorded a steady growth of 24.8% to US$583.15 million during the first six months of 2007, against
US$467.45 million in 2006. Core operating profit for the period registered a comparable growth rate of 24.4% against 2006.
Including the gains from the divestment of the second tranche of 17.5% shares in Slumberland Asia Pacific, first half profit
attributable to shareholders registered a solid increase of 93.1% from US$8.54 million in 2006 to US$16.49 million in 2007.
Earnings per share for the period were US5.32 cents (equivalent to HK41.57 cents), compared to US2.76 cents (equivalent to
HK21.40 cents) for the first half of 2006. The Board of Directors has proposed an interim dividend of HK12 cents per share,
71.4% higher than the HK7 cents per share in 2006.
During the period, the Group announced the acquisitions of two leading Fast Moving Consumer Goods (FMCG) distribution
companies in Sarawak and Sabah to strengthen our overall position in Malaysia and complement our operations in Brunei.
Subsequent to the period under review, the Group announced the acquisition of an apparel and footwear logistics company in
the United Kingdom. This is an important strategic move to expand our international logistics presence globally and make our
first entry into Europe.
Both Logistics and Marketing recorded strong double-digit growth in operating profit during the first half, as China continued to
deliver strong results. However, Manufacturing showed a decline against the same period of last year, due partly to
unfavorable market conditions in Thailand and Malaysia.
Chairman’s Statement
4

Logistics registered a 21.7% growth in operating profit to US$7.16 million against the first half of 2006. The strong results were
mainly driven by strong performance in China and the enhanced operations in Malaysia following the acquisition of a domestic
logistics company in October 2006. Revenue grew at a faster rate of 64.6%, mainly attributable to the US operations acquired in
late 2006. Substantial efforts are underway to improve efficiency and upgrade the IT platform, including the implementation of
our standard regional Enterprise Resources Planning (ERP) system and Warehouse Management System (WMS) that will bring
it in line with our Asia operations. Investments made in this year will position our US operations for aggressive growth in our
next Three-Year Strategic Plan 2008–2010.
Marketing delivered exceptional results during the first half of 2007. Operating profit during the period grew by 38.4% to
US$8.16 million, with across-the-board improvement compared to last year. China continued to grow from strength to strength
amidst buoyant consumer sentiment. The Philippine operations showed encouraging progress and are expected to break even
by the end of 2007. As a result, the operating margin improved from 1.7% in the first half of 2006 to 2.0% this year. The Group
has transferred the management control of Slumberland Asia Pacific to Hilding Anders together with the second tranche
divestment in June 2007. As a consequence, Slumberland Asia Pacific became an associated company of the Group from 8
June 2007 onwards.
Manufacturing started off slowly in 2007 with revenue and operating profit declining by 7.4% and 20.0% respectively. The slow
start was attributable to the political environment in Thailand and sluggish order volume in Malaysia. However, the Group
remains confident that the second half performance would significantly improve. Following the smooth commencement of
production for Henkel in early 2007, the site infrastructure in Indonesia has been significantly enhanced and gained wider
recognition in the industry. In June, the Group won a major extension of the manufacturing contract with Johnson & Johnson
to expand the export coverage of our Listerine plant in Thailand to the entire Asia Pacific region. Production volume will
increase substantially over the next five years commencing 2008.
The Group initiated the preparation of the next Three-Year Strategic Plan 2008–2010 in March 2007 to determine the direction
and key transformational goals for the future development of IDS. The plan will be finalized before the end of the year and will
be widely communicated throughout the organization.
The Group remains cautiously optimistic about the overall economy in Greater China and the ASEAN countries despite some
short-term challenges in certain markets. We believe the trend of outsourcing will continue in Asia, thus leading to stronger
demand for services rendered by IDS. This, coupled with the recent acquisitions, will enable IDS to finish the current Three-
Year Strategic Plan 2005–2007 strongly, and build a robust foundation for even stronger growth in the next Strategic Plan
period for 2008–2010.
On behalf of the Directors, I would like to take this opportunity to express my gratitude to the management and all members of
staff for their efforts and contributions during the period.
Victor FUNG Kwok King
Chairman
Hong Kong, 15 August 2007
Chairman’s Statement
5Integrated Distribution Services Group Limited Interim Report 2007

As we move towards the end of our current Three-Year Strategic Plan 2005–2007, I am delighted to report that the Group
continued to register significant progress across all fronts in the first half of 2007.
IDS delivered solid financial results during the period, with revenue growing 24.8% to US$583.15 million, against US$467.45
million in the first half of 2006. Profit attributable to shareholders recorded a 93.1% growth to US$16.49 million, compared with
US$8.54 million during the same period in 2006. The increase in profit was attributed to strong organic growth and a one-off
gain from the disposal of 17.5% interests in Slumberland Asia Pacific. Cash flow from operations was significant at US$27.30
million against US$16.50 million in the first half of 2006.
In April 2007, IDS announced the acquisition of interests in two leading distributors of Fast Moving Consumer Goods (FMCG) in
the East Malaysian states of Sarawak and Sabah to complement our operations in Brunei and strengthen our presence in
Malaysia. Concurrent with the release of our interim results, IDS announced its entry into Europe through the acquisition of a
logistics company in the United Kingdom. This now provides the foundation for aggressively building our international logistics
services.
The renewed focus on business development last year has proven to be rewarding. In the first half of 2007, IDS signed over 50
new contracts, far exceeding the run rate of previous years. 20 of the new contracts are with existing customers to expand
the scope of our relationships, including major logistics contracts with Johnson & Johnson in the Philippines and Diageo in
Thailand. These new contracts will fuel strong organic growth in 2008 and beyond.
Financial Overview
Six months ended 30 June
2007 2006 Change
US$ million US$ million %
Revenue 583.15 467.45 24.8%
Core operating profit 10.68 8.58 24.4%
Operating profit 22.86 8.58 166.3%
Profit attributable to shareholders 16.49 8.54 93.1%
Revenue
The group reported revenue of US$583.15 million for the six months ended 30 June 2007, an increase of 24.8% compared with
the same period last year. The strong growth in revenue was driven by the 64.6% increase in Logistics, benefiting from the US
and Malaysia acquisitions. Marketing business grew 23.2%, reflecting continued strong performances from China and the
Philippines. Manufacturing recorded 7.4% decline in revenue.
GMD’s Report
6

Gross profit
Gross profit for the six months ended 30 June 2007 increased to US$164.69 million from US$114.58 million in first half of 2006.
Gross profit margin rose from 24.5% in first half of 2006 to 28.2% in first half of 2007 mainly due to favorable revenue mix
reflecting the significant increase in Logistics revenue.
Expenses
The combined marketing and logistics expenses increased by 47.4% for the six months ended 30 June 2007 to US$131.40
million. The increase was mainly attributed to the acquisition of logistics businesses in Malaysia and the US. The increase in
marketing expenses reflected the growth of our Marketing business.
Administrative expenses for the six months ended 30 June 2007 increased by 34.4% to US$22.61 million.
Core operating profit
Taking the above into account, core operating profit grew by 24.4% to US$10.68 million for the six months ended 30 June 2007.
Operating profit
Operating profit for the six months ended 30 June 2007 surged to US$22.86 million, 166.3% increase over same period last year,
which included a US$11.29 million gain on the divestment of 17.5% equity interest in Slumberland Asia Pacific.
Net profit
Net finance costs for the six months ended 30 June 2007 increased by US$1.30 million to US$1.82 million, reflecting the finance
cost for the new acquisitions. Taxation for the first six months amounted to US$3.79 million, representing an effective tax rate
of 17.9%, compared to a net tax credit of US$1.01 million for the same period last year which included the recognition of
US$3.43 million one-off deferred tax credit.
Taking the above into account, profit attributable to shareholders grew 93.1% to US$16.49 million for the six months ended 30
June 2007.
Segmental Analysis
Logistics
The Group’s Logistics business continued to grow in 2007. Revenue and segment results increased by 64.6% and 21.7% to
US$107.79 million and US$7.16 million respectively, driven by new contracts won, improved operating leverage and the US and
Malaysia new businesses acquired during the fourth quarter of 2006.
Marketing
As a result of the expanded distribution network in China and the strong revenue growth in the Philippines, revenue increased
by 23.2% to US$417.82 million. Core operating profit of the Marketing segment increased by 38.4% to US$8.16 million for the six
months ended 30 June 2007.
GMD’s Report
7Integrated Distribution Services Group Limited Interim Report 2007

Manufacturing
Revenue and segment results dropped by 7.4% and 20.0% to US$64.28 million and US$1.72 million respectively for the six
months ended 30 June 2007 mainly due to soft consumer demand and lower order volume.
Geographical Analysis
Total revenue grew 24.8% mainly attributable to the strong growth from China and the Philippines, registering 47.6% and 29.0%
growth respectively. Double-digit revenue growth was also registered in Taiwan, Thailand, Singapore and Indonesia.
Liquidity and Financial Resources
As at 30 June 2007, the Group had a gearing ratio of 20.8%. Additional loans were raised mainly for acquisitions. The Group
has available bank loans and overdraft facilities of US$250.00 million of which US$96.48 million have been utilized.
Charges on Group Assets
As at 30 June 2007, there were no charges on the Group’s assets.
Foreign Exchange Risk Management
The Group operates regionally in ten economies over the world and is exposed to foreign exchange risk. Fluctuations in
exchange rates in these economies can affect the earnings and net assets of the Group.
In addition, certain purchase transactions are not conducted in the respective local currencies of our operations. The foreign
currencies involved in these transactions include mainly U.S. Dollars, Euro, Japanese Yen and Sterling Pounds. The Group
purchases foreign currency contracts to protect against the adverse effect of such exchange fluctuations on the foreign
currency. Our Group policy is to hedge all material purchases transacted in foreign currencies and restrict from engaging in
speculative foreign exchange transactions.
GMD’s Report
8

Contingent Liabilities
As at 30 June 2007, the Group has counter guaranteed the following outstanding bank guarantees issued by banks for normal
operations:
30 June 31 December
2007 2006

US$’000 US$’000
As security in favor of local tax and customs authorities
in accordance with local regulations 296 9,811
For purchase of goods in favor of suppliers 11,035 10,052
Performance bonds and others 386 407
For rental payment in favor of the landlords 8,008 5,762
19,725 26,032

Human Resources
As at 30 June 2007, the Group employed 6,300 permanent employees and 3,900 contract/temporary employees. They were
located throughout our operations in ten economies within the Group. Total staff costs for the six months ended 30 June 2007
amounted to approximately US$72.79 million.
The Group offers its staff competitive remuneration schemes. In addition, discretionary bonuses and share options are granted
to eligible staff based on individual and Group performance. The Group is committed to nurturing a learning culture in the
organization.
Operations Overview
The Group recorded core operating profit growth of 24.4% in the first half of 2007 against same period last year. Both Logistics
and Marketing delivered double-digit growth in operating profit, while Manufacturing was affected by a challenging operating
environment and registered a decline.
China continued to deliver strong growth in the first half of 2007 with revenue and operating profit increasing 47.6% and 33.5%
respectively. China now accounts for 18.3% of the Group’s total revenue, increasing from 15.5% in the first half of 2006. We
now have 17 branch offices capable of transacting directly with key retailers and operate 16 major distribution centers
covering 1 million square feet in China.
GMD’s Report
9Integrated Distribution Services Group Limited Interim Report 2007

Logistics registered a 21.7% growth in operating profit against the first half of 2006 to reach US$7.16 million. Revenue grew
faster at 64.6%, primarily attributable to the US operations, which were acquired in November 2006. Remarkable growth was
also registered in China, Thailand and Malaysia driven by new contract wins and improved operational efficiencies.
Substantial efforts are underway to enhance our US operations in order to improve efficiency and deliver higher future growth.
Supporting functions were strengthened in the first quarter of 2007 with a new management team recruited to oversee the
finance, IT and human resources functions. A project was launched in May to implement the group-wide Enterprise Resources
Planning (ERP) system and Warehouse Management System (WMS), and to review processes and procedures in order to
upgrade operational efficiency and service levels.
As a result of heavy investments in the US, Logistics operating margin registered a decline to 6.6% in the first half of 2007.
However, the operating margin for our Logistics businesses in Asia continued to remain strong at over 8%. We expect the
overall Logistics operating margin to recover strongly towards the end of this year.
Our Logistics operations also continued to receive significant recognition from customers. In April 2007, our Philippine team
won the Unilever 2006 Vendor of the Year Award. This is the third consecutive year the team has been acknowledged by
Unilever, having also won the 2004 Vendor of the Year Award and the 2005 Service Supplier of the Year Award. In May, our
Thailand team was selected as the Best Retail Logistics Service Provider by the Frost & Sullivan Voice of the Customer
Awards. The winner was identified through independent research covering 270 respondents. It was indeed a powerful
testimony to the high quality of service provided by IDS.
Marketing delivered a solid performance in the first half. Revenue and operating profit for the first half of 2007 increased by
23.2% and 38.4% to US$417.82 million and US$8.16 million respectively against same period last year. Excluding the Slumberland
business, the FMCG and Healthcare products distribution business registered an even stronger growth of 54% in operating
profit.
All markets reported improvements, most notably China, Hong Kong and Thailand. The rationalization program of terminating
unprofitable accounts in Thailand, Malaysia, Indonesia and Singapore during the past two years has successfully improved
performance of these units. As a result of the major contracts signed last year with Procter & Gamble and a number of new
accounts won this year, the Philippines also showed substantial improvement in the first half.
The progressive divestment of our interests in Slumberland Asia Pacific has resulted in the increased involvement of our
partner, Hilding Anders. With their technological know-how and marketing expertise, Hilding Anders assisted in improving plant
productivity and negotiating more favorable raw materials prices. As the Group transferred management control of Slumberland
Asia Pacific to Hilding Anders in June 2007, we began to report the results of the Slumberland business as an associated
company from June onwards. Marketing will therefore be renamed Distribution to reflect the change.
GMD’s Report
10

Compared to the first half of 2006, Manufacturing had a slower-than-expected first half in 2007, partly attributable to the
political environment in Thailand and the sluggish market condition in Malaysia. This resulted in two of our major customers,
namely Unilever in Thailand and Fonterra in Malaysia, to substantially reduce their order volume. Operating profit decreased by
20.0% in the first half of 2007 against the same period in 2006. However, business momentum is recovering as the second
quarter proved far stronger than the first quarter. Given the seasonal nature of the business, we are optimistic that our
Manufacturing business will significantly improve in the second half of 2007.
A major success in the first half was the extension of our long-term contract with Johnson & Johnson to expand the export
coverage of our Listerine plant from the existing 10 countries to the entire Asia Pacific, including Australia. As a consequence,
production volume is expected to surge dramatically over the next five years commencing 2008. A plant extension project is
underway and expected to be completed by the end of 2007.
The Henkel project in Indonesia commenced smoothly in early 2007. Discussions on expanding the scope of this project to
cover other product lines and export markets are on-going. Should the plan come to fruition, it will give our Indonesia
operations another major boost in scale. In tandem with the building of the Henkel facility, IDS’ manufacturing site
infrastructure was significantly enhanced. Other major plant and equipment improvement projects are also underway. As a
result, a number of new contract wins have been registered and the plant is now gaining wider recognition in the industry.
The business development pipeline remains solid, particularly in Malaysia. A number of beverage contracts with Nestl, F&N
and Cadbury Schweppes were secured in the first half. We will continue to aggressively pursue contracts with regional export
opportunities similar to the Listerine contract. Such contracts are usually sizable in nature and can reduce the impact of
fluctuating domestic demand on our business.
Acquisitions Update
In April 2007, the Group announced the acquisitions of a 67.09% interest in Sebor (Sarawak) Sdn Bhd and a 40% interest in
Sebor (Sabah) Sdn Bhd. The two acquisitions were subsequently completed in May and July 2007 respectively. Both companies
are well-established distributors in East Malaysia with over 30 years experience in the FMCG segment and are leaders in their
respective geographic markets with an extensive distribution network. The acquired businesses can augment our operations in
Brunei to form a strong position in East Malaysia, and provide an opportunity for us to extend our scope of service in the
region.
On 15 August 2007 the Group announced the acquisition of PB Logistics, the logistics arm of the Peter Black Group in the
United Kingdom for a total consideration of approximately 11.53 million (HK$180.39 million). PB Logistics is engaged in the
provision of supply chain management, storage and transportation, and pre-retailing (such as garment preparation, quality
inspection and gift packing) services. Its client portfolio consists mainly of major UK retailers, including Marks and Spencer,
and suppliers of garment and accessory items.
GMD’s Report
11Integrated Distribution Services Group Limited Interim Report 2007

This is an important strategic move to expand our logistics presence on a global scale and make our first entry into Europe.
We have now successfully established a strong foothold in both the US and the UK to complement our comprehensive logistics
infrastructure in Asia and provide end-to-end supply chain solutions to customers.
Future Prospects
The investments made this year to upgrade the Group’s US logistics operations will be crucial to the development of our export
logistics services. By connecting the US operations with the Group’s extensive infrastructure in Asia, IDS will be well
positioned to administer global logistics programs and control the end-to-end supply chain to optimize the flow of goods,
information, work and capital for customers. The UK acquisition, once completed, will further enhance our geographic
presence and enable us to expand our scope to cover continental Europe.
To prepare IDS for the challenge of quantum growth and superior performance in the next Strategic Plan 2008-2010, we have
embarked on a comprehensive Leadership, Management and Talent (LMT) Development Program in 2006. For the remainder of
2007 and throughout 2008, we will continue to roll out the Core Management Training Program for some 1,200 managers and
supervisors. In addition, we have just launched our first Management Trainee program for nearly 90 internationally recruited
management trainees. The trainees will undergo a two-year intensive training program to develop sufficient in-house talent with
a comprehensive understanding of the IDS business model and the ability to drive future business growth.
We will put a stronger focus on the M&A front and institutionalize and further strengthen the deal evaluation and integration
processes. In order to bolster our resources in this area, Rajesh Ranavat, former Chief Financial Officer of IDS, was appointed
to lead M&A and the US operations in June 2007, and Srinivasan Parthasarathy joined the Group as Chief Financial Officer.
We are excited about the growth opportunities in front of IDS. During the three Strategic Plan periods since 1999, the Group
has successfully transformed from a traditional distributor to a service-driven company offering a comprehensive menu of
services. The coming Three-Year Strategic Plan 2008-2010, which will be finalized towards the end of this year, will continue
this transformation and propel IDS to new heights.
Ben CHANG Yew Teck
Group Managing Director
Hong Kong, 15 August 2007
GMD’s Report
12

Corporate Governance Practices
The Board of Directors and Management are committed to principles of good corporate governance consistent with prudent
enhancement and management of shareholder value. These principles emphasize transparency, accountability and an
appropriate oversight by Independent Non-executive Directors.
In order to reinforce their respective independence, accountability and responsibility, the role of the Group Chairman is
separate from that of the Group Managing Director with their respective responsibilities endorsed by the Board in writing.
The Board has established the Audit Committee, the Compensation Committee and the Nomination Committee (all chaired by
Non-executive Directors) with written terms of reference (available to shareholders upon request), which are of no less
exacting terms than those set out in the Code on Corporate Governance Practices of the Rules Governing the Listing of
Securities on
Corporate governance practices adopted by the Company during the six-month period to 30 June 2007 are in line with those
practices set out in the Company’s 2006 Annual Report.
Audit Committee
The Audit Committee was established with written terms of reference which cover the review of the Group’s financial
reporting, internal controls and corporate governance issues and to make relevant recommendations to the Board. The Audit
Committee comprises three Independent Non-executive Directors, namely Mr. John Estmond STRICKLAND (Chairman of the
Committee), Dr. FU Yu Ning and Prof. LEE Hau Leung, and a Non-executive Director, Mr. LAU Butt Farn. All committee members
possess appropriate industry and financial expertise to advise on the above matters.
The Audit Committee met twice to date in 2007 (with an average attendance rate of 87.5%) to review with senior management
and the Company’s internal and external auditors, the significant internal and external audit findings and financial matters as
required under the Committee’s terms of reference. The Committee’s review covers the audit plans and findings of the internal
and external auditors, external auditor’s independence, the accounting principles and practices adopted by the Group, Listing
Rules and statutory compliance, internal controls, risk management and financial reporting matters (including the interim
financial information for the six-month period to 30 June 2007 before recommending them to the Board for approval).
Compensation Committee
The Compensation Committee was established with written terms of reference which cover the review of the Group’s
remuneration policy and the approving of the remuneration policy for all Executive Directors and senior management, including
the allocation of share options to employees under the Company’s Employee Share Option Scheme.
As at 30 June 2007, the Committee comprises the Group Non-executive Chairman, Dr. Victor FUNG Kwok King (Chairman of the
Committee), Mr. William Winship FLANZ and Prof. LEE Hau Leung (Independent Non-executive Directors). The Committee met
once to date in 2007 (with an attendance rate of 67%).
Corporate Governance
13Integrated Distribution Services Group Limited Interim Report 2007

Nomination Committee
The Nomination Committee was established with written terms of reference which cover the recommendations to the Board on
the appointment of Directors, evaluation of board composition and the management of board succession.
As at 30 June 2007, the Committee comprises two Independent Non-executive Directors, namely Mr. William Winship FLANZ
(Chairman of the Committee) and Dr. FU Yu Ning and a Non-executive Director, Mr. Jeremy Paul Egerton HOBBINS. The
Nomination Committee met once to date in 2007 (with an attendance rate of 100%).
On 2 July 2007, Mr. William Winship FLANZ was re-designated as a Non-executive Director and his chairmanship in the
Nomination Committee remained unchanged while his membership in the Compensation Committee was assumed by Dr. FU Yu
Ning. Dr. FU retired as a member of Nomination Committee on the same date.
Code of Conduct and Business Ethics
The Group’s business ethics and whistle blowing policy, and guidelines on business conduct are made available to the staff in
the Company’s intranet for quick reference.
Internal Control and Risk Management
The Board is responsible for maintaining an adequate system of internal controls in the Company and reviewing its
effectiveness through the Audit Committee.
The Board has delegated to executive management the implementation and ongoing compliance monitoring of such system of
internal controls covering financial, operational controls and risk management procedures. Qualified personnel throughout the
Group maintain and monitor this system of controls throughout the six-month period to 30 June 2007.
The Group’s Internal Audit team within the Corporate Governance and Compliance Division, under the supervision of our Group
Chief Compliance Officer, independently reviews these controls and evaluates their adequacy, effectiveness and compliance,
and reports regularly to the Audit Committee. The Group Chief Compliance Officer reports all the major findings at the Audit
Committee meetings.
Follow up on all recommendations was also performed on a periodical basis to ensure all agreed recommendations had been
timely and satisfactorily implemented during the six-month period to 30 June 2007.
Corporate Governance
14

Based on the assessments made by senior management and the Group’s Internal Audit team during the six-month period to 30
June 2007, the Audit Committee is satisfied that:
. the internal controls and accounting systems of the Group are in place and function effectively and are designed to
provide reasonable assurance that material assets are protected, business risks attributable to the Group are identified
and monitored, material transactions are executed in accordance with management’s authorization and the financial
information are reliable for publication.
. there is an ongoing process in place for identifying, evaluating and managing the significant risks faced by the Group.
Compliance with the Model Code of the Listing Rules
The Group has adopted procedures governing Directors’ securities transactions in compliance with the Model Code as set out
in Appendix 10 of the Listing Rules. Specific enquiries have been made to all Directors to confirm compliance with the Model
Code. Relevant employees who are likely to be in possession of unpublished price-sensitive information of the Group are also
subject to compliance with written guidelines on no less exacting terms than the Model Code. The Company noted no incident
of non-compliance during the six-month period to 30 June 2007.
Compliance with the Code on Corporate Governance Practices of the Listing Rules
The Board has reviewed the Company’s corporate governance practices and is satisfied that the Company has complied with
the code provisions set out in the Code on Corporate Governance Practices contained in Appendix 14 of the Listing Rules
during the six-month period to 30 June 2007.
Investor Relations and Communication
The Company continues to pursue a proactive policy of promoting investor relations and communications by conducting
analysts’ briefings and road shows after the interim and final results announcement, participating in investors’ conferences and
making corporate presentations during the conferences, arranging company visits and facility tours and maintaining regular
meetings with institutional shareholders and analysts. Since 2005, webcasts of results presentations at press conference have
also been made available at our corporate website (www.idsgroup.com).
Corporate Governance
15Integrated Distribution Services Group Limited Interim Report 2007

As at 30 June 2007, the directors and chief executives of the Company and their associates had the following interests in the
shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of Part XV of
the Securities and Futures Ordinance (‘‘SFO’’)) as recorded in the register required to be kept under Section 352 of the SFO or
as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by
Directors of Listed Companies (‘‘Model Code’’):
(A) Long position in shares and underlying shares of the Company
Name of Director
Number of shares
Number of
underlying shares
under equity
derivatives (Share
Options) Total interest
Approximate
percentage of
issued share
capital
Personal
interest
Family
interest
Corporate/trust
interest
Other
interest
(%)
Dr. Victor FUNG
Kwok King
2,405,509 — 155,860,917
(Note 1)
——158,266,426 50.74
Dr. William FUNG
Kwok Lun
——155,860,917
(Note 1)
——155,860,917 49.97
Benedict CHANG
Yew Teck
2,162,573 ———12,180,000
(Note 2)
14,342,573 4.60

Joseph Chua PHI 1,422,632 ———2,175,000 3,597,632 1.15
Rajesh Vardichand
RANAVAT

————2,070,000 2,070,000 0.66
LAU Butt Farn 610,549 ——— —610,549 0.20
John Estmond
STRICKLAND

———22,000
(Note 3)
— 22,000 0.00
Directors’ Interests and Short Positions in Shares,
Underlying Shares and Debentures
16

The interests of Dr. Victor FUNG Kwok King and Dr. William FUNG Kwok Lun in shares of the Company are summarized
in the following chart:
Notes:
1. King Lun Holdings Limited (‘‘King Lun’’) through its indirect non-wholly owned subsidiary, Li & Fung (Gemini) Limited (‘‘LFG’’), held a 49.28% interest in
Li & Fung (Distribution) Limited (‘‘LFD’’). In addition, King Lun also through its wholly owned subsidiary, Li & Fung (1937) Limited (‘‘LF1937’’) held
50.72% interest in LFD. LFD held 155,860,917 shares, representing 49.97% of the issued share capital of the Company. King Lun are owned (a) as to
50% by J.P. Morgan Trust Company (Jersey) Limited (which also indirectly held 8.77% of the issued share capital of LFG), the trustee of a trust
established for the benefit of the family members of Dr. Victor FUNG Kwok King and (b) as to 50% by Dr. William FUNG Kwok Lun. Dr. Victor FUNG
Kwok King and Dr. William FUNG Kwok Lun are deemed to have interests in these shares through their respective interests in King Lun and indirect
interests in LFD as set out above.
2. These interests represent:
a. the beneficial interest of Mr. Benedict CHANG Yew Teck in 3,780,000 underlying shares in respect of share options granted by the
Company to Mr. Benedict CHANG Yew Teck, the details of which are set out in the Share Option Scheme section stated below; and
Directors’ Interests and Short Positions in Shares,
Underlying Shares and Debentures
17Integrated Distribution Services Group Limited Interim Report 2007

b. the deemed interest of Mr. Benedict CHANG Yew Teck in 8,400,000 underlying shares in the Company in respect of options granted by
LF1937 to Mikenwill Investments Limited (‘‘Mikenwill’’), which is owned by Mr. Benedict CHANG Yew Teck, to require LF1937 to sell to
Mikenwill or its nominee 10,500,000 shares in the Company in five tranches, with the first tranche of 2,100,000 shares exercised on 9
January 2007 and each of the remaining tranches having an exercisable period of one year during the period from 1 January 2007 to 31
December 2010 pursuant to an agreement made between LF1937 and Mikenwill dated 5 January 2007.
3. Mr. John Estmond STRICKLAND and his wife, Mrs. Anthea Evadne STRICKLAND are joint beneficial owners of these shares.
(B) Short position in shares and underlying shares of the Company
By virtue of the SFO, each of Dr. Victor FUNG Kwok King and Dr. William FUNG Kwok Lun was taken as at 30 June
2007 to have short position through LF1937, in which both of them are deemed to have interests as disclosed above, in
respect of an aggregate of 8,400,000 underlying shares in the Company, representing 2.69 percent of the total issued
share capital of the Company. Such interest constitutes, for the purposes of the SFO, a short position of LF1937 under
unlisted physically settled equity derivative which arise under an agreement made between LF1937 and Mikenwill dated
5 January 2007 pursuant to which options were granted by LF1937 to Mikenwill to require LF1937 to sell to Mikenwill or
its nominee 10,500,000 shares in the Company in five tranches, with the first tranche of 2,100,000 shares exercised on 9
January 2007 and each of the remaining tranches having an exercisable period of one year during the period from 1
January 2007 to 31 December 2010.
Save as disclosed above, as at 30 June 2007, none of the directors and chief executive of the Company or their
associates had any short position in the shares, underlying shares and debentures of the Company or any of its
associated corporations (within the meaning of Part XV of the SFO) as recorded in the register required to be kept
under Section 352 of the SFO or as otherwise notified to the Company and the Stock Exchange pursuant to the Model
Code.
(C) Share options
The interests of the directors and chief executives in the share options (being regarded as unlisted physically settled
equity derivatives) of the Company are detailed in the Share Option Scheme section stated below.
Save as disclosed above, at no time during the period, the directors and chief executives (including their spouse and
children under the age of 18) had any interest in, or had been granted, or exercised, any rights to subscribe for shares
of the Company or its associated corporations required to be disclosed pursuant to the SFO.
Directors’ Interests and Short Positions in Shares,
Underlying Shares and Debentures
18

Share Option Scheme
By the written resolutions of the then sole shareholder of the Company dated 4 November 2004 and amended by
a committee of the board on 22 November 2004, the Company had adopted a share option scheme (the
‘‘Scheme’’).
Movements of the share options under the Scheme during the period are as follows:
Number of Share Options
As at
01/01/2007 Exercised Lapsed
As at
30/06/2007 Exercise price Grant Date Exercise period
HK$
Benedict CHANG Yew Teck 750,000 750,000 ——4.825 14/12/04 01/01/07–31/12/08
750,000 ——750,000 4.825 14/12/04 01/01/08–31/12/09
750,000 750,000 4.825 14/12/04 01/01/09–31/12/10
380,000 ——380,000 8.600 16/12/05 01/01/08–31/12/09
380,000 380,000 8.600 16/12/05 01/01/09–31/12/10
380,000 ——380,000 8.600 16/12/05 01/01/10–31/12/11
380,000 380,000 15.100 15/12/06 01/01/09–31/12/10
380,000 ——380,000 15.100 15/12/06 01/01/10–31/12/11
380,000 380,000 15.100 15/12/06 01/01/11–31/12/12
Joseph Chua PHI 375,000 375,000 ——4.825 14/12/04 01/01/07–31/12/08
375,000 ——375,000 4.825 14/12/04 01/01/08–31/12/09
375,000 375,000 4.825 14/12/04 01/01/09–31/12/10
210,000 ——210,000 8.600 16/12/05 01/01/08–31/12/09
210,000 210,000 8.600 16/12/05 01/01/09–31/12/10
210,000 ——210,000 8.600 16/12/05 01/01/10–31/12/11
265,000 265,000 15.100 15/12/06 01/01/09–31/12/10
265,000 ——265,000 15.100 15/12/06 01/01/10–31/12/11
265,000 265,000 15.100 15/12/06 01/01/11–31/12/12
Rajesh Vardichand RANAVAT 345,000 ——345,000 4.825 14/12/04 01/01/07–31/12/08
345,000 345,000 4.825 14/12/04 01/01/08–31/12/09
345,000 ——345,000 4.825 14/12/04 01/01/09–31/12/10
135,000 135,000 8.600 16/12/05 01/01/08–31/12/09
135,000 ——135,000 8.600 16/12/05 01/01/09–31/12/10
135,000 135,000 8.600 16/12/05 01/01/10–31/12/11
210,000 ——210,000 15.100 15/12/06 01/01/09–31/12/10
210,000 210,000 15.100 15/12/06 01/01/10–31/12/11
210,000 ——210,000 15.100 15/12/06 01/01/11–31/12/12
Continuous contract employees 2,610,000 1,777,000 9,000 824,000 4.825 14/12/04 01/01/07–31/12/08
2,610,000 — 153,000 2,457,000 4.825 14/12/04 01/01/08–31/12/09
2,610,000 — 153,000 2,457,000 4.825 14/12/04 01/01/09–31/12/10
824,500 ——824,500 8.600 16/12/05 01/01/08–31/12/09
824,500 824,500 8.600 16/12/05 01/01/09–31/12/10
824,500 ——824,500 8.600 16/12/05 01/01/10–31/12/11
755,000 755,000 15.100 15/12/06 01/01/09–31/12/10
755,000 ——755,000 15.100 15/12/06 01/01/10–31/12/11
755,000 755,000 15.100 15/12/06 01/01/11–31/12/12
Notes:
1. The weighted average closing market price per share immediately before the dates on which the Share Options were exercised was HK$20.35.
2. The share option is valued under the Black-Scholes valuation model which is developed to estimate the fair value of European share options. The fair values
calculated are inherently subjective and uncertain due to the assumptions made and the limitations of the model used. The value of an option varies with
different variables of certain subjective assumptions. Any change in variable so adopted may materially affect the estimation of the fair value of an option.
Directors’ Interests and Short Positions in Shares,
Underlying Shares and Debentures
19Integrated Distribution Services Group Limited Interim Report 2007

As at 30 June 2007, other than the interests of the directors or chief executive of the Company as disclosed above, the
following persons had interests or short positions in the shares or underlying shares of the Company which fall to be disclosed
to the Company under Section 336 of the SFO:
Name of Shareholder Capacity Number of Shares
Approximate
percentage of issued
share capital
(%)
Long Positions
Li & Fung (Distribution) Limited Beneficial owner 155,860,917 49.97
Li & Fung (Gemini) Limited Interest of controlled corporation 155,860,917 49.97
Li & Fung (1937) Limited Interest of controlled corporation 155,860,917 49.97
King Lun Holdings Limited Interest of controlled corporation 155,860,917 49.97
J.P. Morgan Trust Company
(Jersey) Limited
Interest of controlled corporation 155,860,917 49.97
Brookside Capital Investors, L.P. Interest of controlled corporation 15,473,000 4.96
Commonwealth Bank of Australia Interest of controlled corporation 15,459,000 4.96
Short Positions
Li & Fung (1937) Limited Beneficial owner 8,400,000
(Note)
2.69

King Lun Holdings Limited Interest of controlled corporation 8,400,000
(Note)
2.69

J.P. Morgan Trust Company
(Jersey) Limited
Interest of controlled corporation 8,400,000
(Note)
2.69

Note:
This short position represents LF1937’s short position in 8,400,000 underlying shares which constitutes unlisted physically settled equity derivatives pursuant to
arrangement as described in the Directors’ Interests and Short Positions in Shares, Underlying Shares and Debentures section stated above.
Save as disclosed above, the Company had not been notified of any short position being held by any substantial shareholder in
the shares or underlying shares of the Company as at 30 June 2007.
Interests and Short Positions of Substantial Shareholders
20

Purchase, sale or redemption of the Company’s listed shares
The Company has not redeemed any of its listed shares during the period. Neither the Company nor any of its subsidiaries has
purchased or sold any of the Company’s listed shares during the period.
Interim Dividend
The Board of Directors has declared an interim dividend of HK12.00 cents (equivalent to US1.54 cents) (2006: HK7.00 cents
(equivalent to US0.90 cent)) in cash per share for the six months ended 30 June 2007, which will be payable to shareholders
whose names appear on the Register of Members of the Company on 7 September 2007.
Closure of Register of Members
The Register of Members will be closed from 4 September 2007 to 7 September 2007, both days inclusive, during which period
no transfer of shares will be effected. In order to qualify for the interim dividend, all transfers accompanied by the relevant
share certificates must be lodged with the Company’s Hong Kong branch share registrar, Tricor Abacus Limited (formerly
known as Abacus Share Registrars Limited) at 26th Floor, Tesbury Centre, 28 Queen’s Road East, Wanchai, Hong Kong for
registration not later than 4:30 p.m. on 3 September 2007. Dividend warrants will be despatched to shareholders on or about 21
September 2007.
Other Information
21Integrated Distribution Services Group Limited Interim Report 2007

Unaudited Audited
30 June 31 December
2007 2006

Note US$’000 US$’000
ASSETS

Non-current assets
Intangible assets 5 38,512 39,496
Property, plant and equipment 5 68,917 68,914
Lease premium for land 2,963 1,684
Associated companies 6,043 –
Other non-current assets 6 7,970 7,774
Pension assets 899 849
Deferred tax assets 10 7,842 9,818
133,146 128,535

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Current assets
Inventories 133,388 116,182
Trade and other receivables 6 223,365 210,172
Taxation recoverable 579 652
Time deposits 27,334 46,432
Bank balances and cash 42,542 38,161
427,208 411,599

Total assets 560,354 540,134
EQUITY

Capital and reserves attributable to the Company’s shareholders
Share capital 7 31,190 30,900
Reserves 8 90,879 78,248
122,069 109,148

Minority interests 6,020 7,085
Total equity 128,089 116,233
Condensed Consolidated Balance Sheet
22

Unaudited Audited
30 June 31 December
2007 2006

Note US$’000 US$’000
LIABILITIES

Non-current liabilities
Unsecured bank loan 9 52,249 51,242
Obligations under finance leases 9 – 15
Deficit on pension schemes 1,668 1,544
Post-employment benefit liabilities 2,963 2,942
Other non-current payables 11 12,506 16,408
Deferred tax liabilities 10 2,412 1,793
71,798 73,944

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Current liabilities
Trade and other payables 11 311,023 297,075
Bank loans and other borrowings 9 44,330 47,245
Taxation payable 5,114 5,637
360,467 349,957

Total liabilities 432,265 423,901
Total equity and liabilities 560,354 540,134
Net current assets 66,741 61,642
Total assets less current liabilities 199,887 190,177
The notes on page 27 to 49 form integral part of this condensed interim financial information.
Condensed Consolidated Balance Sheet
23Integrated Distribution Services Group Limited Interim Report 2007

Unaudited
Six months ended 30 June
2007 2006

Note US$’000 US$’000
Revenue 4 583,149 467,450
Cost of sales (418,464) (352,867)
Gross profit 164,685 114,583
Marketing and logistics expenses (131,399) (89,174)
Administrative expenses (22,605) (16,825)
Core operating profit 12 10,681 8,584
Other gains 13 12,178 –
Operating profit 14 22,859 8,584
Finance costs, net 15 (1,819) (516)
Share of profits less losses of associated companies 85 –
Profit before taxation 21,125 8,068
Taxation 16 (3,787) 1,010
Profit for the period 17,338 9,078
Profit attributable to:
Shareholders of the Company 16,486 8,537
Minority interests 852 541
17,338 9,078

Interim dividend 17 4,801 2,782
Earnings per share for profit attributable to the shareholders of
the Company during the period 18
Basic US 5.32 cents US 2.76 cents
Diluted US 5.12 cents US 2.69 cents
The notes on page 27 to 49 form integral part of this condensed interim financial information.
Condensed Consolidated Income Statement
24

Unaudited
Attributable to shareholders of
the Company
Share
capital
Other
reserves
Retained
earnings
Minority
interests Total
US$’000 US$’000 US$’000 US$’000 US$’000
At 1 January 2006 30,900 39,248 17,116 5,058 92,322
Exchange differences – 3,067 – 148 3,215
Profit for the period ––8,537 541 9,078
Total recognized income for the period – 3,067 8,537 689 12,293
Employee share option benefits – 475 ––475
Dividends paid ––(5,575) (200) (5,775)
At 30 June 2006 30,900 42,790 20,078 5,547 99,315
At 1 January 2007 30,900 46,532 31,716 7,085 116,233
Exchange differences – 5,058 – 153 5,211
Profit for the period ––16,486 852 17,338
Total recognized income for the period – 5,058 16,486 1,005 22,549
Employee share option benefits
— cost of employee services – 726 ––726
— proceeds from shares issued 290 1,502 1,792
Disposal of a subsidiary – (626) 626 (3,763) (3,763)
Acquisition of a subsidiary –––4,113 4,113
Acquisition of additional interest in a subsidiary (1,658) (1,658)
Capital injection by minority shareholders of a
subsidiary –––18 18
Dividends paid (11,141) (780) (11,921)
At 30 June 2007 31,190 53,192 37,687 6,020 128,089
The notes on page 27 to 49 form integral part of this condensed interim financial information
Condensed Consolidated Statement of Changes in Equity
25Integrated Distribution Services Group Limited Interim Report 2007

Unaudited
Six Months ended 30 June
2007 2006

Note US$’000 US$’000
Cash flows from operating activities
Cash generated from operations 19(a) 27,296 16,495
Interest paid (2,366) (1,706)
Net overseas tax paid (2,853) (4,200)
Net cash generated from operating activities 22,077 10,589
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Cash flows from investing activities
Interest received 1,122 1,190
Net decrease/(increase) in time deposits 5,105 (1,430)
Purchase of property, plant and equipment (5,909) (2,734)
Purchase of intangible assets (803) (172)
Sale of plant and equipment 211 93
Acquisition of a subsidiary (7,167) –
Acquisition of additional interest in a subsidiary (766) –
Disposal of a subsidiary (4,662) –
Settlement of consideration payable for acquisition of business (4,299) –
Capital injection by minority shareholders of a subsidiary 18 –
Net cash used in investing activities (17,150) (3,053)
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Net cash before financing activities 4,927 7,536
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Cash flows from financing activities
Dividends paid to minority shareholders of subsidiaries (780) (200)
Dividends paid 8 (11,141) (5,575)
Capital element of finance lease payments (77) (52)
Net proceeds from issue of shares 1,792 –
Net decrease in bank loans (1,965) (6,005)
Net cash used in financing activities (12,171) (11,832)
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Decrease in cash and cash equivalents (7,244) (4,296)
Cash and cash equivalents at beginning of period 78,274 55,985
Effect of foreign exchange rate changes (1,792) 692
Cash and cash equivalents at the end of period 69,238 52,381
Analysis of balances of cash and cash equivalents:
Bank balances and cash 42,542 24,946
Deposits with maturity less than three months 27,334 29,093
Bank overdrafts (638) (1,658)
69,238 52,381

The notes on page 27 to 49 form integral part of this condensed interim financial information.
Condensed Consolidated Cash Flow Statement
26

1 GENERAL INFORMATION
Integrated Distribution Services Group Limited (the ‘‘Company’’) and its subsidiaries (together the ‘‘Group’’) are principally
engaged in the provision of logistics services, the marketing and distribution of consumer and healthcare products and
manufacturing. The Group operates mainly in geographical areas of Hong Kong, Taiwan, Thailand, Malaysia, Singapore,
the Philippines, Indonesia, Mainland China (‘‘PRC’’), Brunei and the United States of America (‘‘the US’’).
The Company is a limited liability company incorporated in Bermuda on 25 September 2003. The address of its
registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
The Company has its primary listing on the Main Board of The Stock Exchange of Hong Kong Limited (the ‘‘Stock
Exchange’’).
The condensed consolidated financial information was approved for issue by the Board of Directors on 15 August 2007.
2 BASIS OF PREPARATION

This unaudited condensed consolidated financial information 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 (‘‘HKICPA’’).
This unaudited condensed consolidated financial information should be read in conjunction with the 2006 annual
financial statements.
This interim financial information has been prepared in accordance with those HKAS and Hong Kong Financial
Reporting Standards (‘‘HKFRS’’) and interpretations issued and effective as at the time of preparing this interim financial
information.
3 ACCOUNTING POLICIES

The accounting policies and methods of computation used in the preparation of this condensed consolidated financial
information is consistent with those used in the annual financial statements for the year ended 31 December 2006.
The following new standards, amendments to standards and interpretations are mandatory for financial year ending 31
December 2007. Management has considered and concluded that there is either no significant financial impact or
relevance to the Group:
HKAS 1 (Amendment) Presentation of Financial Statements — 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
Notes to Condensed Consolidated Financial Information
27Integrated Distribution Services Group Limited Interim Report 2007

3 ACCOUNTING POLICIES (cont’d)
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 10 Interim Financial Reporting and Impairment
HK(IFRIC)-Int 11 HKFRS 2 — Group and Treasury Share Transactions
HK(IFRIC)-Int 12 Service Concession Arrangements
4 REVENUE AND SEGMENT INFORMATION

The Group is principally engaged in the provision of logistics services, the marketing and distribution of consumer and
healthcare products and manufacturing.
Unaudited
Six months ended 30 June
2007 2006

US$’000 US$’000
Sales of goods 467,567 402,842
Rendering of services 115,582 64,608
Revenue 583,149 467,450
Primary reporting format — business segments
The Group is organized on a worldwide basis into the following business segments:
Logistics
Marketing
Manufacturing
Secondary reporting format — geographical segments
The Group operates in the following geographical areas:
Hong Kong – Marketing and Logistics
PRC – Marketing and Logistics
Taiwan – Logistics
Thailand – Marketing, Logistics and Manufacturing
Malaysia – Marketing, Logistics and Manufacturing
Singapore – Marketing and Logistics
the Philippines – Marketing and Logistics
Indonesia – Marketing and Manufacturing
Brunei – Marketing
the US – Logistics
Notes to Condensed Consolidated Financial Information
28

4 REVENUE AND SEGMENT INFORMATION (cont’d)
Primary reporting format — business segments
An analysis of the Group’s segment revenue and contribution to operating profit for the period by business segment is
as follows:
Six months ended 30 June 2007
Unaudited
Logistics Marketing Manufacturing Corporate
Inter-segment
elimination
Group
total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Sales of goods – 413,360 54,363 – (156) 467,567
Rendering of services 107,785 4,464 9,919 – (6,586) 115,582
Revenue 107,785 417,824 64,282 – (6,742) 583,149
Gross profit 103,635 63,262 3,376 – (5,588) 164,685
Marketing, logistics and
administrative expenses (96,479) (55,099) (1,660) (6,354) 5,588 (154,004)
Core operating profit 7,156 8,163 1,716 (6,354) – 10,681
Other gains –– –12,178 12,178
Segment results 7,156 8,163 1,716 5,824 22,859
Finance costs, net (1,819)
Share of profits less losses of
associated companies 85
Profit before taxation 21,125
Taxation (3,787)
Profit for the period 17,338
Depreciation and amortization 2,989 1,352 1,377 973 6,691
Capital expenditure 3,034 880 2,479 319 6,712
Capital expenditure arising from
acquisition of a subsidiary – 4,330 –– 4,330
Notes to Condensed Consolidated Financial Information
29Integrated Distribution Services Group Limited Interim Report 2007

4 REVENUE AND SEGMENT INFORMATION (cont’d)
Primary reporting format — business segments (cont’d)
Six months ended 30 June 2006
Unaudited
Logistics Marketing Manufacturing Corporate
Inter-segment
elimination
Group
total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Sales of goods – 335,546 67,405 – (109) 402,842
Rendering of services 65,484 3,645 2,047 – (6,568) 64,608
Revenue 65,484 339,191 69,452 – (6,677) 467,450
Gross profit 60,519 56,197 3,460 – (5,593) 114,583
Marketing, logistics and
administrative expenses (54,639) (50,301) (1,315) (5,337) 5,593 (105,999)
Core operating profit 5,880 5,896 2,145 (5,337) – 8,584
Other gains –– –– –
Segment results 5,880 5,896 2,145 (5,337) 8,584
Finance costs, net (516)
Share of profits less losses of
associated companies –
Profit before taxation 8,068
Taxation 1,010
Profit for the period 9,078
Depreciation and amortization 1,955 1,207 691 598 4,451
Capital expenditure 1,132 844 803 127 2,906
Notes to Condensed Consolidated Financial Information
30

4 REVENUE AND SEGMENT INFORMATION (cont’d)
Primary reporting format — business segments (cont’d)
An analysis of the Group’s segment assets and liabilities at period/year end is as follows:
Unaudited
30 June 2007 Logistics Marketing Manufacturing Corporate Group total
US$’000 US$’000 US$’000 US$’000 US$’000
Segment assets 123,079 298,713 52,676 79,843 554,311
Associated companies – 6,043 ––6,043
Total assets 123,079 304,756 52,676 79,843 560,354
Total liabilities 113,372 233,704 31,667 53,522 432,265
Audited
31 December 2006 Logistics Marketing Manufacturing Corporate Group total
US$’000 US$’000 US$’000 US$’000 US$’000
Total assets 137,556 273,336 43,762 85,480 540,134
Total liabilities 129,061 214,241 26,781 53,818 423,901
Notes to Condensed Consolidated Financial Information
31Integrated Distribution Services Group Limited Interim Report 2007

4 REVENUE AND SEGMENT INFORMATION (cont’d)
Secondary reporting format — geographical segments
Unaudited
Revenue Capital expenditure
Six months ended 30 June Six months ended 30 June
2007 2006 2007 2006

US$’000 US$’000 US$’000 US$’000
Hong Kong 109,835 106,961 535 351
PRC 107,499 72,819 863 683

Taiwan 13,243 9,300 370 77
Thailand 78,964 67,041 1,239 750
Malaysia 69,182 65,512 5,776 379
Singapore 38,848 32,214 295 135
the Philippines 123,926 96,055 216 294
Indonesia 5,012 3,990 380 140
Brunei 16,432 15,618 7 97
the US 23,008 – 1,361 –
585,949 469,510 11,042 2,906

Less: Inter-segment elimination (2,800) (2,060) – –
Total 583,149 467,450 11,042 2,906
Segment Assets
Unaudited Audited
30 June 31 December
2007 2006

US$’000 US$’000
Hong Kong 102,822 119,341
PRC 113,787 95,113

Taiwan 27,431 34,631
Thailand 72,139 64,120
Malaysia 102,830 85,619
Singapore 26,169 35,992
the Philippines 50,258 35,762
Indonesia 6,074 8,755
Brunei 11,133 11,369
the US 41,668 49,432
554,311 540,134

Notes to Condensed Consolidated Financial Information
32

5 CAPITAL EXPENDITURE
Goodwill
Customer
base
Software
costs Trademarks
Total
intangible
assets
Property,
plant and
equipment
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Net book value at
1 January 2007 28,123 2,993 7,336 1,044 39,496 68,914
Additions ––803 – 803 5,909
Acquisition of a subsidiary 202 – 202 2,479
Disposal of a subsidiary –––(1,044) (1,044) (5,067)
Disposals (4) – (4) (187)
Amortization/depreciation
charge – (159) (837) – (996) (5,659)
Exchange difference 12 52 (9) – 55 2,528
Net book value at
30 June 2007 28,135 2,886 7,491 – 38,512 68,917
Software costs include internally generated capitalized software development costs.
Notes to Condensed Consolidated Financial Information
33Integrated Distribution Services Group Limited Interim Report 2007

6 TRADE AND OTHER RECEIVABLES
Unaudited Audited
30 June 31 December
2007 2006

US$’000 US$’000
Trade receivables 167,599 166,629
Less: provision for impairment of receivables (2,351) (2,275)
Trade receivables, net (note (a)) 165,248 164,354
Other receivables, prepayments, and deposits 61,201 48,947
Due from related companies (note (b) & note 22) 4,886 4,645
231,335 217,946

Less: non-current portion: prepayments and deposits (7,970) (7,774)
223,365 210,172

Notes:
(a) The Group normally granted credit terms to its customers ranging from 30 to 90 days. In certain circumstances, longer credit terms are given based
on negotiated contract terms. At period/year end, the aging analysis of the Group’s trade receivables based on invoice date was as follows:
Unaudited Audited
30 June 31 December
2007 2006

US$’000 US$’000
Less than 90 days 152,149 153,367
91–180 days 9,333 8,715
181–360 days 2,712 1,513
Over 360 days 1,054 759
165,248 164,354

The Group has recognized a loss of US$144,000 (2006: US$82,000) for the impairment of its trade receivables during the six months ended 30 June
2007. The loss has been included in marketing and logistics expenses in the consolidated income statement.
(b) The amounts due from related companies were aged less than 90 days and the credit terms granted to related companies were no more favorable
than those granted to other third party customers.
Notes to Condensed Consolidated Financial Information
34

7 SHARE CAPITAL AND OPTIONS
Ordinary shares
No. of shares US$’000
Authorized:
At 1 January 2007 and 30 June 2007,
ordinary shares of US$0.1 each 1,000,000,000 100,000
Issued and fully paid:
At 1 January 2007, ordinary shares of US$0.1 each 309,000,000 30,900
Exercise of share options 2,902,000 290
At 30 June 2007, ordinary shares of US$0.1 each 311,902,000 31,190
Share options
Details of the share option scheme are set out in the 2006 annual report. Movements in the number of share options
outstanding and the exercise prices are as follows:
30 June 2007 31 December 2006
Average
exercise price
HK$ per share Share options
Average
exercise price
HK$ per share Share options
At 1 January 7.918 21,718,500 5.887 17,770,500
Granted ––15.100 4,830,000
Exercised 4.825 (2,902,000) ––
Lapsed (note) 4.825 (315,000) 4.825 (531,000)
Lapsed (note) ––8.600 (351,000)
At 30 June/31 December 8.456 18,501,500 7.918 21,718,500
Note:
Share options lapsed following the cessation of employment of certain grantees.
Subsequently, 815,000 shares have been allotted and issued under the Share Option Scheme up to 15 August 2007.
Notes to Condensed Consolidated Financial Information
35Integrated Distribution Services Group Limited Interim Report 2007

7 SHARE CAPITAL AND OPTIONS (cont’d)
Share options outstanding at the end of the period/year have the following expiry date and exercise price:
Share options
Expiry date
Exercise price
HK$ per share
30 June
2007

31 December
2006

31 December 2008 4.825 1,169,000 4,080,000
31 December 2009 4.825 3,927,000 4,080,000
31 December 2010 4.825 3,927,000 4,080,000
31 December 2009 8.600 1,549,500 1,549,500
31 December 2010 8.600 1,549,500 1,549,500
31 December 2011 8.600 1,549,500 1,549,500
31 December 2010 15.100 1,610,000 1,610,000
31 December 2011 15.100 1,610,000 1,610,000
31 December 2012 15.100 1,610,000 1,610,000
18,501,500 21,718,500

The fair value of options granted was determined using the Black-Scholes valuation model based on the following
assumptions:
Date of grant
15 December
2006

16 December
2005

14 December
2004

Share price at date of grant HK$15.10 HK$8.60 HK$4.825
Exercise price HK$15.10 HK$8.60 HK$4.825
Share volatility 34% 34% 30%
Average annual risk-free interest rate 3.72% 4.11% 2.22%
Expected life of options 4 to 6 years 4 to 6 years 4 to 6 years
Expected dividend yield 3% 3% 3%
Notes to Condensed Consolidated Financial Information
36

8 RESERVES
Share
premium
Employee
share-based
compensation
reserve
Merger
reserve
Exchange
reserve
Retained
earnings Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
At 1 January 2006 21,019 537 16,450 1,242 17,116 56,364
Exchange differences –––3,067 – 3,067
Profit for the period – –––8,537 8,537
2005 final dividend paid (5,575) (5,575)
Employee share option benefits – 475 –––475
At 30 June 2006 21,019 1,012 16,450 4,309 20,078 62,868
––––––––––––––––––––––––––––––––––––––––––––––––––––––
Exchange differences –––3,237 – 3,237
Actuarial losses from post
employment benefits recognized
in reserve:
— gross – –––(268) (268)
— tax 37 37
Profit for the period – –––14,651 14,651
2006 interim dividend paid (2,782) (2,782)
Employee share option benefits – 505 –––505
At 31 December 2006 21,019 1,517 16,450 7,546 31,716 78,248
––––––––––––––––––––––––––––––––––––––––––––––––––––––
Exchange differences –––5,058 – 5,058
Profit for the period – –––16,486 16,486
2006 final dividend paid (11,141) (11,141)
Employee share option benefits
— cost of employee services – 726 –––726
— proceeds from shares issued 1,502 ––– 1,502
— transfer to share premium 291 (291) – –––
Disposal of a subsidiary ––167 (793) 626 –
At 30 June 2007 22,812 1,952 16,617 11,811 37,687 90,879
Notes to Condensed Consolidated Financial Information
37Integrated Distribution Services Group Limited Interim Report 2007

9 BANK LOANS AND OTHER BORROWINGS
As at period/year end, bank loans, bank overdrafts and other borrowings were repayable as follows:
Unaudited Audited
30 June 31 December
2007 2006

US$’000 US$’000
On demand and within one year
Unsecured bank overdrafts 638 1,214
Unsecured bank loans 43,589 45,866
Obligations under finance leases 103 165
44,330 47,245

In the second to fifth year
Unsecured bank loan 52,249 51,242
In the second to fifth year, by instalments
Obligations under finance leases – 15
96,579 98,502

The carrying amounts of bank loans and other borrowings approximate their fair value.
10 DEFERRED TAXATION

Deferred taxation is calculated in full on temporary differences under the liability method.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred tax income taxes relate to the same fiscal authority.
Notes to Condensed Consolidated Financial Information
38

11 TRADE AND OTHER PAYABLES
Unaudited Audited
30 June 31 December
2007 2006

US$’000 US$’000
Trade payables (note (a)) 239,280 211,779
Other payables and accruals 77,436 95,786
Obligations on pension – defined contribution plans 838 894
Due to related companies (note (b) & note 22) 5,975 5,024
323,529 313,483

Less: non-current portion of other payables (12,506) (16,408)
311,023 297,075

Notes:
(a) The aging analysis of the Group’s trade payables was as follows:
Unaudited Audited
30 June 31 December
2007 2006

US$’000 US$’000
Less than 90 days 204,443 178,037
91–180 days 32,979 30,569
181–360 days 1,211 1,758
Over 360 days 647 1,415
239,280 211,779

(b) The amounts due to related companies were aged less than 90 days and the credit terms granted by related companies were no more favorable
than those granted from other third party suppliers.
12 CORE OPERATING PROFIT

Core operating profit is the recurring profit generated from the Group’s business which comprises profit before interest
income, finance costs and tax, and excludes material gain or loss which are of capital nature or non-recurring nature
(such as gain or loss on disposal or impairment provision of property, plant and equipment or other assets).
Notes to Condensed Consolidated Financial Information
39Integrated Distribution Services Group Limited Interim Report 2007

13 OTHER GAINS
Unaudited
Six months ended 30 June
2007 2006

US$’000 US$’000
Gain on disposal of a subsidiary 11,286 –
Gain on acquisition of additional interest in a subsidiary 892 –
Other gains 12,178 –
14 OPERATING PROFIT

Operating profit is stated after charging/(crediting) the following:
Unaudited
Six months ended 30 June
2007 2006

US$’000 US$’000
Depreciation of
Owned property, plant and equipment 5,632 3,798
Leased property, plant and equipment 27 37
Amortization of intangible assets 996 609
Amortization of prepaid operating lease payment 36 7
Provision for impairment losses on trade receivables 144 82
(Reversal of provision)/Provision for obsolete inventories (249) 781
Gain on disposal of plant and equipment (24) (11)
Costs of inventories sold 413,638 345,974
Exchange gain (313) (58)
Notes to Condensed Consolidated Financial Information
40

15 FINANCE COSTS, NET
Unaudited
Six months ended 30 June
2007 2006

US$’000 US$’000
Interest expense on bank loans and overdrafts 2,359 1,702
Interest expense on finance leases 7 4
Imputed interest on non-current payables (note) 575 –
2,941 1,706

Interest income from bank deposits (1,122) (1,190)
Finance costs, net 1,819 516
The Group operates cash pooling arrangements in several economies to optimize the net finance cost on gross cash
and borrowings by different subsidiaries in the same economy. A substantial portion of the interest income and expense
stated above relates to such cash pooling arrangements. Accordingly, the finance cost is presented as interest expense
net of interest income.
Note:
The amount represents imputed interest on non-current position of the purchase consideration payable at the average borrowing rate of 5.68% under the
effective interest method.
Notes to Condensed Consolidated Financial Information
41Integrated Distribution Services Group Limited Interim Report 2007

16 TAXATION
Hong Kong profits tax has been provided for at the rate of 17.5% on the estimated assessable profits for the period. It
has not been provided for the six months ended 2006 as the Group’s assessable profits in Hong Kong have been offset
against tax losses from prior years. 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 charged/(credited) to the condensed consolidated income statement for the period represents:
Unaudited
Six months ended 30 June
2007 2006

US$’000 US$’000
Current taxation:
— Hong Kong profits tax 39 –
— overseas taxation 2,200 2,683
Deferred taxation 1,548 (3,693)
Taxation charge/(credit) 3,787 (1,010)
17 INTERIM DIVIDENDS

Unaudited
Six months ended 30 June
2007 2006

US$’000 US$’000
Interim dividend — proposed after balance sheet date of HK12.00 cents
(equivalent to US1.54 cents) (2006: HK7.00 cents (equivalent to
US0.90 cent)) per share (note) 4,801 2,782
Note:
At a meeting held on 15 August 2007 the directors declared an interim dividend of HK12.00 cents (equivalent to US1.54 cents) per share. This proposed
dividend is not reflected as a dividend payable in this condensed financial information, but will be reflected as an appropriation of reserve for the year
ending 31 December 2007.
Notes to Condensed Consolidated Financial Information
42

18 EARNINGS PER SHARE
Basic
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Company by the
weighted average number of ordinary shares in issue during the period.
Unaudited
Six months ended 30 June
2007 2006

Profit attributable to shareholders of the Company (US$’000) 16,486 8,537
Weighted average number of ordinary shares in issue (thousands) 310,162 309,000
Basic earnings per share (US cents per share) 5.32 2.76
Diluted
Diluted earnings per share is based on the weighted average number of 310,162,000 (2006: 309,000,000) shares in issue
during the period plus weighted average number of 12,010,000 (2006: 7,982,000) shares deemed to have been issued at
no consideration if all outstanding options had been exercised.
Unaudited
Six months ended 30 June
2007 2006

Profit attributable to shareholders of the Company (US$’000) 16,486 8,537
Weighted average number of ordinary shares in issue (thousands) 310,162 309,000
Adjustments for share options (thousands) 12,010 7,982
Weighted average number of ordinary shares for diluted earnings per share
(thousands) 322,172 316,982
Diluted earnings per share (US cents per share) 5.12 2.69
Notes to Condensed Consolidated Financial Information
43Integrated Distribution Services Group Limited Interim Report 2007

19 NOTES TO THE CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(a) Cash generated from operations:
Unaudited
Six months ended 30 June
2007 2006

US$’000 US$’000
Operating profit 22,859 8,584
Amortization of intangible assets 996 609
Depreciation charge 5,659 3,835
Amortization of prepaid operating lease payments 36 7
Gain on disposal of property, plant and equipment (24) (11)
Loss on disposal of intangible assets 4 –
Gain on disposal of a subsidiary (11,286) –
Gain on acquisition of additional interest in a subsidiary (892) –
Share option expenses 726 475
Operating profit before working capital changes 18,078 13,499
Increase in inventories (9,492) (1,340)
(Increase)/decrease in trade and other receivables and
surplus on pension schemes (2,120) 5,789
Increase/(decrease) in trade and other payables, deficit on
pension schemes and post employment benefit liabilities 20,830 (1,453)
Net cash inflow generated from operations 27,296 16,495
Notes to Condensed Consolidated Financial Information
44

19 NOTES TO THE CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (cont’d)
(b) Acquisition of subsidiaries
In May 2007, the Group acquired the 67.09% equity interest of IDS Sebor (Sarawak) Holdings Sdn. Bhd. (formerly
known as Sebor (Sarawak) Sdn. Bhd.), together with its various subsidiaries (‘‘Sarawak’’) in Malaysia. Sarawak is
principally engaged in distribution of consumer products. The acquired business contributed revenues of
approximately US$6,589,000 and net profit of approximately US$118,000 to the Group for the period from 1 June
2007 to 30 June 2007.
If the acquisition had occurred on 1 January 2007, the estimated unaudited consolidated revenue for the Group
would have been approximately US$614,072,000 and unaudited net profit would have been approximately
US$17,857,000.
Unaudited
Six months ended
30 June 2007
Carrying amount Fair value
US$’000 US$’000
Net assets acquired:
Software 202 202
Property, plant and equipment 1,687 2,479
Lease premium for land 350 1,649
Inventories 12,442 12,442
Trade and other receivables 7,816 7,816
Bank balances and cash 1,035 1,035
Deferred tax liabilities (126) (690)
Trade and other payables (12,236) (12,236)
Taxation payable (205) (205)
Minority interests (3,610) (4,113)
Net assets 7,355 8,379
Satisfied by cash consideration 7,917
Expenses incurred on acquisition 462
8,379

Analysis of the net outflow of cash and
cash equivalent in respect of the acquisition:
Purchase consideration 7,917
Expenses incurred on acquisition 462
Expenses payable in respect of acquisition (177)
Cash and cash equivalents in subsidiary acquired (1,035)
7,167

There was no acquisition in the period ended 30 June 2006.
Notes to Condensed Consolidated Financial Information
45Integrated Distribution Services Group Limited Interim Report 2007

19 NOTES TO THE CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (cont’d)
(c) Disposal of a subsidiary
Unaudited
Six months ended
30 June 2007
US$’000
Intangible assets 1,044
Property, plant and equipment 5,067
Lease premium for land 315
Other non-current assets 219
Deferred tax assets 694
Inventories 6,486
Trade and other receivables 8,164
Bank balances and cash 6,999
Deficit on pension schemes (121)
Other non-current payables (156)
Deferred tax liabilities (168)
Trade and other payables (16,237)
Bank overdraft (459)
Taxation payable (41)
Minority interests (3,763)
8,043

Transfer to associated companies (5,958)
2,085

Gain on disposal 11,286
13,371

Analysis of net outflow of cash and cash equivalent in respect of the disposal:
Cash consideration 13,543
Expenses incurred in respect of the disposal (50)
Net cash refund relating to partial divestment in 2006 (122)
Sales consideration receivable (11,543)
Expenses payable in respect of the disposal 50
Cash and cash equivalent disposed (6,540)
(4,662)
In June 2007, the Group disposed of a 17.5% interest in Slumberland Asia Pacific Limited (‘‘Slumberland’’).
Subsequent to the completion, the Group’s interest in Slumberland has been reduced from 67.5% to 50%. The
transaction resulted in Slumberland ceasing to be a subsidiary and becoming an associated company of the
Group.
There was no disposal in the period ended 30 June 2006.
Notes to Condensed Consolidated Financial Information
46

20 CONTINGENT LIABILITIES
Bank guarantees
The Group has counter guaranteed the following outstanding bank guarantees issued by banks for normal operations:
Unaudited Audited
30 June 31 December
2007 2006

US$’000 US$’000
As security in favor of local tax and customs authorities in accordance with
local regulations 296 9,811
For purchase of goods in favor of suppliers 11,035 10,052
Performance bonds and others 386 407
For rental payment in favor of the landlords 8,008 5,762
19,725 26,032
21 COMMITMENTS

(a) Capital commitments contracted but not provided for in respect of:
Unaudited Audited
30 June 31 December
2007 2006

US$’000 US$’000
Property, plant and equipment 1,057 1,495
(b) Commitments under operating leases
The Group had future aggregate minimum lease payments under non-cancellable operating leases as follows:
Buildings Others
Unaudited Audited Unaudited Audited
30 June 31 December 30 June 31 December
2007 2006 2007 2006

US$’000 US$’000 US$’000 US$’000
Not later than one year 30,137 28,872 788 1,017
Later than one year and not later than
five years 83,785 81,843 940 967
Later than five years 72,304 78,812 – –
186,226 189,527 1,728 1,984

Notes to Condensed Consolidated Financial Information
47Integrated Distribution Services Group Limited Interim Report 2007

22 SIGNIFICANT RELATED PARTY TRANSACTIONS
The Group is controlled by Li & Fung (Distribution) Limited, incorporated in the British Virgin Islands which owns 49.97%
of the Company’s shares as at 30 June 2007. The remaining shares are widely held. The ultimate parent of the Group is
King Lun Holdings Limited incorporated in the British Virgin Islands.
The significant transactions carried out with the related parties were:
Unaudited
Six months ended 30 June
2007 2006

Note US$’000 US$’000
Continuing transactions with fellow
subsidiaries and related companies
— Distribution and sales of goods (a) 629 516
— Provision of shipping, handling and other logistics services (a) 1,809 1,199
— Billing agent service (a) 186 172
— Rental received from (b) 596 544
— Rental paid to (b) 981 1,321
Note:
(a) Distribution and sales of goods and provision of shipping, handling and other logistics services, sales/purchase of goods and revenue from
rendering of logistics services and billing agent service were conducted in the normal course of business at prices and terms no less favorable
than those charged to other third party customers/suppliers.
(b) Rental received/paid were charged on normal commercial terms based on relevant lease agreements entered.
In the opinion of the Directors, the above transactions were entered into at terms as agreed with the related
companies in the ordinary course of business.
Notes to Condensed Consolidated Financial Information
48

22 SIGNIFICANT RELATED PARTY TRANSACTIONS (cont’d)
Directors’ compensation
Unaudited
Six months ended 30 June
2007 2006

US$’000 US$’000
Salaries and other short-term employee benefits 1,980 1,462
Share-based payments 334 196
Post-employment benefits 2 2
2,316 1,660

Balances with related parties
Unaudited Audited
30 June 31 December
2007 2006

US$’000 US$’000
Due from related companies
— fellow subsidiaries (a) 4,886 4,645
Due to related companies
— fellow subsidiaries (b) 5,975 5,024
Notes:
(a) Period/year end balances are arised from sales/services/recharge of administrative and rental expense. The balances are unsecured, interest free
and with terms of repayment according to the credit terms granted.
(b) Period/year end balances are arised from purchase. The balances are unsecured, interest free and with terms of repayment according to the credit
terms granted.
23 SUBSEQUENT EVENTS

On 31 July 2007, the Group completed the sale and purchase agreement to acquire 40% equity interest of Sebor
(Sabah) Sdn Bhd, a distribution company in Malaysia, for an aggregate cash consideration of approximately US$1.3
million. Details of the acquisition are set out in the announcement of the Company dated 16 April 2007.
On 15 August 2007, the Group entered into a sale and purchase agreement to acquire the entire issued share capital of
PB Logistics Limited, a logistics company in the United Kingdom, for an aggregate cash consideration of approximately
US$23.2 million. Details of the acquisition are set out in separate announcement of the Company published on the same
date.
Notes to Condensed Consolidated Financial Information
49Integrated Distribution Services Group Limited Interim Report 2007

Listing Information
Listing: Hong Kong Stock Exchange
Stock code: 2387
Key Dates
15 August 2007
Announcement of 2007 Interim Results
4 September 2007 to 7 September 2007
(both days inclusive) Closure of Register of Members
On or about 21 September 2007
Proposed Payment of 2007 Interim Dividend
Share Registrar & Transfer Offices
Principal:
Butterfield Fund Services (Bermuda) Limited
Rosebank Centre
11 Bermudiana Road
Pembroke HM 08
Bermuda
Hong Kong Branch:
Tricor Abacus Limited
(formerly known as Abacus Share Registrars Limited)
26th Floor, Tesbury Centre
28 Queen’s Road East,
Wanchai
Hong Kong
Share Information
Board lot size: 1,000 shares
Shares outstanding as at 30 June 2007:
311,902,000 shares
Market Capitalization as at 30 June 2007:
HK$7,703,979,400
Earnings per share (equivalent to) for 2007
Interim: HK41.57 cents
Dividend per share for 2007
Interim: HK12.00 cents
Enquires Contact
Mr. Stewart Kwok
Corporate Affairs Manager
Telephone: (852) 2686 3317
Fax: (852) 2686 3320
Email: stewart.kwok@idsgroup.com
Integrated Distribution Services Group Limited
15th Floor, LiFung Centre
2 On Ping Street
Siu Lek Yuen, Shatin, N.T.
Hong Kong
Website
www.idsgroup.com
www.irasia.com/listco/hk/ids
Information for Investors
50

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