WHEELOCK PROPERTIES LIMITED

Wheelock Properties Limited – Announcement
(5 November 2007)


WHEELOCK PROPERTIES LIMITED

(Incorporated in Hong Kong with limited liability)
Stock Code: 49

OVERSEAS REGULATORY ANNOUNCEMENT


Please refer to the attached announcement.

As at the date of this announcement, the board of directors of Wheelock Properties Limited
comprises Mr. Peter K. C. Woo, Dr. Joseph M. K. Chow, Mr. Gonzaga W. J. Li, Mr. T. Y. Ng,
Mr. Paul Y. C. Tsui and Mr. Ricky K. Y. Wong, together with three independent Non-executive
Directors, namely, Mr. Herald L. F. Lau, Mr. David T. C. Lie-A-Cheong and Mr. Glenn S. Yee.

Co. Reg. No. 197201797H
(Incorporated in the Republic of Singapore)

UNAUDITED RESULTS FOR SECOND QUARTER ENDED 30 SEPTEMBER 2007

TABLE OF CONTENTS

ITEM
NO.
DESCRIPTION PAGE NO.

1(a)

1(b)(i)

1(b)(ii)

1(c)

1(d)(i)

1(d)(ii)

1(e)

2

3

4

5

6

7

8

9

10

11

12

13

14

15

CONSOLIDATED INCOME STATEMENT

BALANCE SHEETS

BORROWINGS

CONSOLIDATED CASH FLOW STATEMENT

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SHARE CAPITAL

SHARE PURCHASE

REVIEW OF RESULTS BY AUDITORS

AUDITORS’ REPORT

BASIS OF PREPARATION

EFFECT OF CHANGES IN ACCOUNTING POLICIES AND METHODS

EARNINGS PER SHARE

NET ASSET VALUE PER SHARE

REVIEW OF PERFORMANCE

FORECAST STATEMENT

CURRENT YEAR’S PROSPECTS

DIVIDEND

TURNOVER AND PROFIT ANALYSIS BY BUSINESS SEGMENTS

COMMENTS ON SEGMENT RESULTS

DISCONTINUED OPERATION

CONFIRMATION BY THE BOARD


2

4

6

7

10

12

13

13

13

13

13

13

14

14

15

15

16

16

17

17

18

2

WHEELOCK PROPERTIES (SINGAPORE) LIMITED
(Incorporated in the Republic of Singapore)

1(a) CONSOLIDATED INCOME STATEMENT

Quarter ended 30 September Period ended 30 September
2007 2006 Change 2007 2006 Change
$'000 $'000 % $'000 $'000 %
Continuing Operations
Revenue 97,555 108,182 -9.8 191,555 211,855 -9.6

Other Income 1,771 4,044 -56.2 4,354 6,821 -36.2

99,326 112,226 -11.5 195,909 218,676 -10.4

Direct Costs and Operating
Expenses (51,560) (77,192) -33.2 (114,708) (148,342) -22.7

Selling and Marketing Expenses 0 (30) -100.0 (36) (164) -78.0

Administrative and Corporate
Expenses
(2,950) (3,816) -22.7 (5,252) (9,089) -42.2

Other Operating Expenses (5,213) (6,678) -21.9 (4,366) (7,540) -42.1

Profit From Operations 39,603 24,510 61.6 71,547 53,541 33.6

Finance Costs (1,024) (2,939) -65.2 (2,107) (5,800) -63.7

Profit From Continuing
Operations Before Taxation 38,579 21,571 78.8 69,440 47,741 45.5

Income Tax Expense (8,139) (5,571) 46.1 (13,490) (12,370) 9.1

Profit After Taxation From
Continuing Operations
30,440 16,000 90.3 55,950 35,371 58.2

Discontinued Operation

Profit from Discontinued
Operation (net of tax) 0 120,128 -100.0 0 127,269 -100.0

Profit For The Period 30,440 136,128 -77.6 55,950 162,640 -65.6

Attributable to:

Equity Holders of the Company 30,440 136,086 -77.6 55,950 162,625 -65.6
Minority Interests 0 42 -100.0 0 15 -100.0

Profit For The Period 30,440 136,128 -77.6 55,950 162,640 -65.6

3

Additional information to the income statement:

Quarter ended 30 September Period ended 30 September
2007 2006 Change 2007 2006 Change
$'000 $'000 % $'000 $'000 %

Interest income 1,770 4,538 -61.0 4,351 7,878 -44.8
Gain on disposal of subsidiary 0 115,661 -100.0 0 115,661 -100.0
Others 1 0 NA 3 4 -25.0
Less:
Amounts reclassified to
discontinued operation 0 (116,155) -100.0 0 (116,722) -100.0
Other income 1,771 4,044 -56.2 4,354 6,821 -36.2

Net exchange loss 5,959 6,371 -6.5 4,742 6,829 -30.6

Under provision of tax 0 140 -100.0 0 697 -100.0

NA : Not applicable

4

1(b)(i) BALANCE SHEETS

Group Company

30.09.2007 31.03.2007 30.09.2007 31.03.2007

$'000 $'000 $'000 $'000
Non-Current Assets

Property, Plant and Equipment
128,737 125,939 112,463 109,482

Investment Property
500,000 500,000 0 0

Amounts Due From Subsidiaries
0 0 545,338 401,526

Interests in Subsidiaries
0 0 205,899 204,216

Interests in Associate
10 10 0 0

Investments
598,502 467,976 0 0

1,227,249 1,093,925 863,700 715,224

Current Assets

Development Properties
1,020,743 1,063,639 156,165 260,473

Trade and Accrued Receivables
7,271 2,504 6,995 83

Amounts Due From Subsidiaries
0 0 266,800 229,656

Amounts Due From Related
Corporations
24 46 24 46

Other Receivables
1,327 1,480 530 975

Cash and Cash Equivalents
523,602 679,697 332,715 407,946

1,552,967 1,747,366 763,229 899,179

Total Assets
2,780,216 2,841,291 1,626,929 1,614,403

Equity Attributable to Equity
Holders of the Company

Share Capital
1,055,901 1,055,901 1,055,901 1,055,901

Reserves
988,242 970,963 144,472 167,271

Total Equity
2,044,143 2,026,864 1,200,373 1,223,172

Non-Current Liabilities
Interest-bearing Liabilities(Ref:1(b)(ii))
517,212 507,087 193,090 186,186

Deferred Tax Liabilities
98,816 91,464 77 94

616,028 598,551 193,167 186,280

Current Liabilities

Trade Payables
43,776 47,746 7,337 8,668

Other Payables
24,711 16,322 12,170 5,211

Amounts Due to Subsidiaries
0 0 202,099 179,866

Interest-bearing Liabilities(Ref:1(b)(ii))
0 99,653 0 0

Current Tax Payable
51,558 52,155 11,783 11,206

120,045 215,876 233,389 204,951

Total Liabilities
736,073 814,427 426,556 391,231

Total Equity and Liabilities
2,780,216 2,841,291 1,626,929 1,614,403

5

COMMENTS ON MAJOR BALANCE SHEET VARIANCES

Group

Increase in investments was mainly due to acquisition of 10% interest in SC Global Developments Ltd.

Decrease in development properties was mainly due to sales proceeds received on sale of Scotts Square and
Ardmore II, partially offset by construction costs incurred for the development properties.

Decrease in cash was mainly due to acquisition of 10% interest in SC Global Developments Ltd, repayment of
bank loans and payment of dividends.

Decrease in interest-bearing liabilities was mainly due to full repayment of bank loans for The Sea View and The
Cosmopolitan projects.

Increase in other payables was mainly due to option monies received from purchasers for Scotts Square project
whereby options have not been exercised as at the end of the financial period.

Increase in deferred tax liabilities was mainly due to provision of tax in respect of increased profits recognised
from The Cosmopolitan and The Sea View.

Company

Increase in amounts due from subsidiaries was mainly due to advances to a subsidiary for acquisition of 10%
interest in SC Global Developments Ltd.

Decrease in development properties was mainly due to sales proceeds received on sale of Scotts Square, partially
offset by construction costs incurred.

Decrease in cash was mainly due to advances to a subsidiary for acquisition of 10% interest in SC Global
Developments Ltd, payment of dividends and construction costs incurred for Scotts Square, partially offset by
sales proceeds received on sale of Scotts Square.

Increase in interest-bearing liabilities was mainly due to additional loan drawn down for construction costs of
Scotts Square.

6

1(b)(ii) BORROWINGS

Group

30.09.2007 31.03.2007

$'000 $'000

Repayable within one year:
Interest-bearing Liabilities (secured) 0 99,653
0 99,653

Repayable after one year but
within 5 years:
Interest-bearing Liabilities (secured) 387,212 377,087
Interest-bearing Liabilities (unsecured) 130,000 130,000

517,212 507,087

The secured interest-bearing liabilities are generally secured by mortgages over the Group’s development
properties and property under development in Singapore, legal assignment of all rights, titles, interests and
benefits under contracts in respect of the properties and corporate guarantees issued by the Company.

7

1(c) CONSOLIDATED CASH FLOW STATEMENT

Quarter ended 30 September Period ended 30 September

2007 2006 2007 2006

$'000 $'000 $'000 $'000

Operating Activities
Profit for the period 30,440 136,128 55,950 162,640

Adjustments for:
Income tax expense 8,139 7,546 13,490 17,042
Depreciation of property, plant and
equipment 130 703 259 1,542
Amortisation of deferred finance
charges and intangible assets
0 302 0 454

Exchange loss 6,018 5,754 5,048 6,873
Loss on disposal of property, plant and
equipment 1 0 1 2
Fixtures, plant and equipment included
in investment property written off
256 30 400 103

Interest expense 1,022 2,735 2,102 5,566
Interest income (1,770) (4,538) (4,351) (7,878)
Share of results of jointly-controlled
entities 0 (977) 0 (2,043)
Revaluation deficit on investment
property
300 195 508 603

Allowance for doubtful receivables 0 105 0 322
Gain on disposal of subsidiary 0 (115,661) 0 (115,661)
Dividend income from investments (24,619) 0 (29,207) (4,765)
Operating profit before working
capital changes 19,917 32,322 44,200 64,800

Changes in working capital:
Development properties 82,091 (33,229) 48,071 (46,767)
Trade and accrued receivables (1,434) 4,525 (4,768) 2,436
Amounts due from related corporations (12) 8 22 (15)
Other receivables (410) 1,037 7 (4,870)
Trade payables (7,104) 2,240 (3,970) 10,048
Other payables 9,928 20,900 8,560 23,914
Cash generated from operations
102,976 27,803 92,122 49,546

Interest received 3,085 6,144 6,838 10,992
Income taxes paid (755) (2,414) (2,900) (5,385)
Dividends paid (30,428) (14,359) (30,428) (14,359)
Cash flows from operating activities 74,878 17,174 65,632 40,794

8

Quarter ended 30 September Period ended 30 September
2007 2006 2007 2006

$'000 $'000 $'000 $'000

Investing Activities
Proceeds from sale of property, plant
and equipment 0 2 0 2
Purchase of property, plant and
equipment (2,820) (2,843) (3,100) (4,365)
Expenditure on investment property (567) (225) (908) (712)
Acquisition of investments (30,112) 0 (142,272) (10,017)
Cash flows on disposal of subsidiary
(net of cash) (Note 1) 0 202,531 0 202,531
Dividends received 20,187 0 23,949 3,813
Cash flows from investing activities (13,312) 199,465 (122,331) 191,252

Financing Activities
Repayment of bank loans (89,653) (115,370) (99,653) (115,370)
Drawdown of bank loans 3,132 0 9,896 8,693
Finance costs (4,554) (8,298) (9,639) (16,287)
Cash flows from financing activities (91,075) (123,668) (99,396) (122,964)

Net (Decrease)/Increase in Cash and
Cash Equivalents
(29,509) 92,971 (156,095) 109,082

Cash and Cash Equivalents At
Beginning of Period 553,111 573,198 679,697 557,087

Cash and Cash Equivalents At End of
Period 523,602 666,169 523,602 666,169

9

Quarter ended 30 September Period ended 30 September
2007 2006 2007 2006

$'000 $'000 $'000 $'000
Note 1
The cash flows and the net assets of
subsidiary disposed are provided
below:

Property, plant and equipment
0 22,227 0 22,227

Intangible assets 0 46,799 0 46,799
Investments
0 3,199 0 3,199

Trade and other receivables 0 50,631 0 50,631
Cash and cash equivalents
0 28,130 0 28,130

Trade and other payables
0 (58,971) 0 (58,971)
Minority interests 0 (1,249) 0 (1,249)
Net identifiable assets and liabilities
disposed
0 90,766 0 90,766

Goodwill on acquisition 0 24,234 0 24,234
Gain on disposal 0 115,661 0 115,661
Cash consideration received, satisfied in
cash 0 230,661 0 230,661
Cash disposed of
0 (28,130) 0 (28,130)
Net cash inflow 0 202,531 0 202,531

10

1(d)(i) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Fair Value

Exchange and

Share Fluctuation Revaluation Accumulated

Capital Reserve Reserve Profits Total
$’000 $’000 $’000 $’000 $’000
Group

At 1 July 2007 1,055,901 (5,923) 325,345 750,997 2,126,320

Exchange differences arising on
consolidation of foreign subsidiary
0 5,828 0 0 5,828

Net fair value changes on available-for-sale
investments
0 0 (88,017) 0 (88,017)

Net gains/(losses) recognised directly in
equity
0 5,828 (88,017) 0 (82,189)

Net profit for the period 0 0 0 30,440 30,440

Total recognised income and expense for the
period
0 5,828 (88,017) 30,440 (51,749)

Dividends paid 0 0 0 (30,428) (30,428)

At 30 September 2007 1,055,901 (95) 237,328 751,009 2,044,143

11

Fair Value

Exchange
And

Share Capital Fluctuation
Revaluation
Accumulated Minority Total
Capital Reserve Reserve
Reserve
Profits Total Interests Equity
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Group

At 1 July 2006 1,055,901 452 (10,278) 40,357 441,379 1,527,811 1,171 1,528,982
Effects of disposal of
subsidiary
0 (452) 1,645 (10,047) 10,438 1,584 (1,249) 335

Exchange differences
arising on
consolidation of
foreign subsidiaries
0 0 4,955 (777) 0 4,178 36 4,214

Net fair value changes
on available-for-sale
investments
0 0 0 15,365 0 15,365 0 15,365

Net (losses)/gains
recognised directly
in equity 0 (452) 6,600 4,541 10,438 21,127 (1,213) 19,914
Net profit for the
period
0 0 0 0 136,086 136,086 42 136,128

Total recognised
income and expense
for the period 0 (452) 6,600 4,541 146,524 157,213 (1,171) 156,042
Dividends paid 0 0 0 0 (14,359) (14,359) 0 (14,359)

At 30 September 2006 1,055,901 0 (3,678) 44,898 573,544 1,670,665 0 1,670,665

12

Fair Value
And
Share Revaluation Accumulated
Capital Reserve Profits Total
$’000 $’000 $’000 $’000
Company

At 1 July 2007 1,055,901 0 172,625 1,228,526

Net profit for the period 0 0 2,275 2,275
Total recognised income for
the period 0 0 2,275 2,275

Dividends paid 0 0 (30,428) (30,428)

At 30 September 2007 1,055,901 0 144,472 1,200,373

Fair Value
And
Share Revaluation Accumulated
Capital Reserve Profits Total
$’000 $’000 $’000 $’000
Company

At 1 July 2006 1,055,901 672 163,097 1,219,670

Net fair value changes on
available-for-sale
investments 0 128 0 128

Net gains recognised directly
in equity 0 128 0 128

Net profit for the period 0 0 6,695 6,695
Total recognised income for
the period 0 128 6,695 6,823

Dividends paid 0 0 (14,359) (14,359)

At 30 September 2006 1,055,901 800 155,433 1,212,134

1(d)(ii) SHARE CAPITAL

Since the last financial year ended 31 March 2007, there has been no change in the issued and paid-up
share capital of the Company.

As at 30 September 2007, there were no unissued shares of the Company or its subsidiaries under option
(30 September 2006: nil).

13

1(e) SHARE PURCHASE

The Company has not made any purchase of its shares during the period ended 30 September 2007.

2. REVIEW OF RESULTS BY AUDITORS

The figures have not been audited by the auditors but have been reviewed in accordance with Singapore
Standard On Review Engagements (“SSRE”) 2410, Review of Interim Financial Information Performed
by the Independent Auditor of the Entity.

The financial information as set out in Sections 1, 4, 5, 6, 7, 11, 12 and 14 of this announcement have
been extracted from the consolidated condensed interim financial information that has been reviewed in
accordance with SSRE 2410.

3. AUDITORS’ REPORT

Refer to auditors’ report attached.

4. BASIS OF PREPARATION

Except as disclosed in Section 5 below, the Group has adopted the same accounting policies and methods
of computation in the financial statements ended 30 September 2007, as compared with the Group’s
audited financial statements as at 31 March 2007.

5. EFFECT OF CHANGES IN ACCOUNTING POLICIES AND METHODS

With effect from 1 April 2007, the Group has adopted Singapore Financial Reporting Standard (“FRS”)
40 – Investment Property that became effective for financial years beginning on or after 1 January 2007.

Prior to the adoption of FRS 40, investment properties accounted for as non-current assets are stated at
fair value. Any increase in value was credited to the revaluation reserve unless it offset a previous
decrease in value recognised in the income statement. A decrease in value was recognised in the income
statement where it exceeded the increase previously recognised in the revaluation reserve.

On the adoption of FRS 40, changes in fair values of investment properties are recognised in the income
statement. In accordance with the transitional provisions of FRS 40, the Group reclassified its revaluation
reserve which amounted to $16,689,000, net of tax to accumulated profits at 1 April 2007.

6. EARNINGS PER SHARE

Quarter ended
30 September
Period ended
30 September
2007 2006 2007 2006

Continuing operations 2.55 cents 1.34 cents 4.68 cents 2.96 cents

Discontinued operation 0.00 cents 10.04 cents 0.00 cents 10.63 cents

Earnings per share are calculated based on the Group’s profit attributable to shareholders and on the
weighted average number of shares of the Company in issue for 2
nd
quarter 2007 and period ended 30
September 2007 of 1,196,559,876 (2006: 1,196,559,876).

14

7. NET ASSET VALUE PER SHARE

Group Company
30.9.2007 31.3.2007 30.9.2007 31.3.2007

$ $ $ $

1.71 1.69 1.00 1.02

8. REVIEW OF PERFORMANCE

2
nd
Quarter ended 30 September 2007 vs 2006

Group turnover and profit after tax from continuing operations for the 2
nd
quarter ended 30 September
2007 was $98 million and $30 million respectively, a decrease of 10% and an increase of 90%
respectively when compared to the same period last year.

Decrease in turnover was mainly due to lower revenue recognition in respect of units sold in The Sea
View and The Cosmopolitan partially offset by higher dividend income from the Group’s 20% interest in
Hotel Properties Limited.

The decrease in direct costs and operating expenses was in line with decrease in turnover.

Decrease in finance costs was due to lower loan principals and interest rates in the current period.

Half year ended 30 September 2007 vs 2006

Group turnover and profit after tax from continuing operations for the half year ended 30 September 2007
was $192 million and $56 million respectively, a decrease of 10% and an increase of 58% respectively
when compared to the same period last year.

Decrease in turnover was mainly due to lower revenue recognition in respect of units sold in The Sea
View and nil revenue recognised from the Group’s investment property, Oakwood Residence
Azabujuban, which was sold in January 2007. This was partially offset by higher dividend income from
the Group’s 20% interest in Hotel Properties Limited and increase in revenue recognition in respect of
units sold in The Cosmopolitan.

The decrease in direct costs and operating expenses was in line with decrease in turnover.

Higher administrative and corporate expenses was incurred in the same period last year due to payment
of special bonus.

Decrease in other operating expenses was mainly due to lower exchange loss.

Decrease in finance costs was due to lower loan principals and interest rates in the current period.

Development Properties

The Sea View / The Cosmopolitan

Main construction works are in progress and the projects are scheduled for completion in the first half of
2008.

15

Ardmore II

Main building work for the project has commenced and the project is scheduled for completion in 2010.

Scotts Square

Piling work for the project has commenced and is in progress. The project is scheduled for completion in
2010.

Orchard View

Main building work for the project is in progress and is scheduled for completion in 2009. The project
will be launched in early 2009.

Ardmore 3

Demolition work has commenced and is expected to be completed in December 2007. Plans are
underway to launch the project in 2008.

Investment Property

Wheelock Place

Wheelock Place is 100% committed at satisfactory rental rates.

Nature of business and profit recognition

Profits on pre-sale of development properties are recognised using the percentage of completion method.
The percentage of completion is measured by reference to the percentage of construction costs incurred at
the balance sheet date to estimated total construction costs. Revenue and profits are only recognised in
respect of finalised sales agreements and to the extent that such revenue and profits relate to the progress
of the construction work.

This basis of revenue and profit recognition together with the nature of our business leads to volatility of
earnings between comparable periods.

9. FORECAST STATEMENT

No forecast or prospect statement had been previously made to shareholders.

10. CURRENT YEAR'S PROSPECTS

Scotts Square was successfully soft launched to our regular customers at the end of July 2007 and
50% of the development was sold at an average price of S$3,986 psf. The 338 super-luxury
apartment development was officially launched for sale with 3 showflats on-site in September 2007.
Sales of the remaining units are on-going and we expect to sell progressively over the next two
years. No profit is expected to be recognised from this project in this financial year as it is still in
the initial stages of construction.

The Group expects to commence profit recognition from the development property, Ardmore II, in
this financial year.

16

Wheelock Place will continue to maintain full occupancy in the current strong market conditions.
Prospects for improved rental rates are good for both office and retail space.

11. DIVIDEND

The Directors do not recommend any interim dividend for the 2
nd
quarter ended 30 September 2007
(2006: nil).

ADDITIONAL INFORMATION

12. TURNOVER AND PROFIT ANALYSIS BY BUSINESS SEGMENTS

The Group comprises the following main business segments:

Property development: The development, construction and sale of development properties.

Property investment: The holding and management of investment properties.

Another business segment, real estate agency, was sold on 24 August 2006 and constituted the
discontinued operation.

GROUP

Revenue Profit from Operations
Quarter ended
30 September
Quarter ended
30 September
2007 2006 2007 2006

$’000 $’000 $’000 $’000
Continuing Operations
Property Development 64,670 98,446 15,158 25,167
Property Investment 8,267 9,736 7,004 6,550
Other Operations 24,618 0 17,441 (7,207)
Total Continuing Operations 97,555 108,182 39,603 24,510

Discontinued Operation
Real Estate Agency 0 36,772 0 121,222
Total Operations 97,555 144,954 39,603 145,732

GROUP

Revenue Profit from Operations
Period ended
30 September
Period ended
30 September
2007 2006 2007 2006

$’000 $’000 $’000 $’000
Continuing Operations
Property Development 146,116 187,732 36,073 47,343
Property Investment 16,233 19,358 12,602 12,511
Other Operations 29,206 4,765 22,872 (6,313)
Total Continuing Operations 191,555 211,855 71,547 53,541

Discontinued Operation
Real Estate Agency 0 89,316 0 130,086
Total Operations 191,555 301,171 71,547 183,627

17

13. COMMENTS ON SEGMENT RESULTS

2
nd
Quarter ended 30 September 2007 vs 2006

Decrease in turnover and profit for property development was mainly due to decrease in revenue and
profit recognition in respect of units sold in The Sea View and The Cosmopolitan.

Increase in turnover and profit for other operations was mainly due to higher dividend income from the
Group’s 20% interest in Hotel Properties Limited.

Half year ended 30 September 2007 vs 2006

Decrease in turnover and profit for property development was mainly due to decrease in revenue and
profit recognition in respect of units sold in The Sea View.

Increase in turnover and profit for other operations was mainly due to higher dividend income from the
Group’s 20% interest in Hotel Properties Limited.

14. DISCONTINUED OPERATION

Sale of Hamptons Group Limited on 24 August 2006 constituted the discontinued operation of the
Group.

Results of discontinued operation are as follows:

Quarter ended 30
September
Period ended 30
September
2007 2006 2007 2006

$'000 $'000 $'000 $'000
Revenue 0 36,772 0 89,316
Expenses 0 (30,330) 0 (73,036)
Profit before taxation 0 6,442 0 16,280
Income tax expense 0 (1,975) 0 (4,672)
Profit after taxation 0 4,467 0 11,608
Gain on sale of discontinued operation 0 115,661 0 115,661
Profit for the period from discontinued
operation

0 120,128

0 127,269

Attributable to:

Equity holders of the Company 0 120,086 0 127,254
Minority interests 0 42 0 15
0 120,128 0 127,269

Net cash flows from operating activities 0 9,048 0 9,787
Net cash flows from investing activities 0 199,819 0 198,565
Net cash flows from financing activities 0 0 0 8,693
Net cash from discontinued operation 0 208,867 0 217,045

18

15. CONFIRMATION BY THE BOARD PURSUANT TO RULE 705(4) OF THE LISTING
MANUAL

The Board of Directors of the Company confirms that to the best of its knowledge, nothing has come to
the attention of the Board which may render the financial statements for the second quarter and half year
ended 30 September 2007 to be false or misleading in any material respects.

By Order Of the Board

Tan Ling Ling
Company Secretary
5 November 2007