JD Logistics, Inc. — Annual Report 2006

Apr 19, 2006

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(Stock Code: 1172)

ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31ST DECEMBER, 2005

The Board of Directors (the “Directors”) of Midas International Holdings Limited (the “Company”) is pleased to announce that the audited consolidated results of the Company and its subsidiaries (the “Group”) for the year ended 31st December, 2005 together with the comparative figures for 2004 are as follows:

CONSOLIDATED INCOME STATEMENT

Notes Turnover 4 Direct expenses Gross profit Other income 5 Selling expenses Administrative and operating expenses Finance costs Profit before taxation 6 Income tax expenses 7 Profit for the year Attributable to: Ordinary shareholders of the Company Minority interests Dividends to ordinary shareholders of the Company 8 Basic earnings per share 9	2005 HK$’000 758,303 (538,366) 219,937 18,284 (26,809) (150,463) (7,196) 53,753 (11,140) 42,613 43,014 (401) 42,613 24,043 HK8.1 cents	2004 HK$’000 (restated) 736,879 (498,939) 237,940 15,401 (26,189) (150,271) (8,058) 68,823 (9,399) 59,424 58,330 1,094 59,424 22,441 HK10.9 cents

* for identification purpose only

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CONSOLIDATED BALANCE SHEET

Notes ASSETS AND LIABILITIES Non-current assets Investment properties Prepaid lease payments Property, plant and equipment Contractual reimbursement from related companies Deposits paid for acquisition of property, plant and equipment Current assets Inventories Trade receivables 10 Deposits, prepayments and other receivables Prepaid lease payments Tax recoverable Bank balances and cash Current liabilities Trade payables 11 Accrued charges and other payables Deposits received in respect of disposal of a subsidiary Tax payable Borrowings Net current assets Total assets less current liabilities Non-current liabilities Borrowings Deferred tax Amount due to a minority shareholder Redeemable preference shares NET ASSETS CAPITAL AND RESERVES Share capital Reserves Equity attributable to ordinary shareholders of the Company Minority interests TOTAL EQUITY	2005 HK$’000 163,970 8,590 234,416 21,019 1,578 429,573 75,163 207,282 8,464 229 1,738 138,214 431,090 146,931 54,492 – 5,097 45,507 252,027 179,063 608,636 100,163 27,895 – – 128,058 480,578 53,429 427,149 480,578 – 480,578	2004 HK$’000 (restated) 393,700 8,819 232,188 32,719 – 667,426 70,261 208,424 12,655 229 212 96,040 387,821 154,904 82,805 936 5,740 35,849 280,234 107,587 775,013 107,000 56,354 56,887 48,500 268,741 506,272 53,429 408,178 461,607 44,665 506,272

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Notes:

1. BASIS OF PREPARATION

The consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standards, Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).

2. CHANGES IN ACCOUNTING POLICIES

In the current year, the Group has applied, for the first time, a number of new Hong Kong Accounting Standards (“HKAS(s)”), Hong Kong Financial Reporting Standards (“HKFRS(s)”) and Interpretations (hereinafter collectively referred to as “new HKFRSs”) issued by the HKICPA that are effective for accounting periods beginning on or after 1st January, 2005. The application of the new HKFRSs has resulted in a change in the presentation of the consolidated income statement, the consolidated balance sheet and the consolidated statement of changes in equity. In particular, the presentation of minority interests has been changed in accordance with HKAS 1 “Presentation of Financial Statements”. These changes in presentation have been applied retrospectively.

The adoption of the new HKFRSs has resulted in changes to the Group’s accounting policies in the following areas:

• (1) Business Combinations

HKFRS 3 “Business Combinations” is effective for business combinations for which the agreement date is on or after 1st January, 2005 and for goodwill previously recognised and brought forward as at 1st January, 2005. The principal effects of the application of transitional provision HKFRS 3 to the Group are summarised below:

Goodwill

Goodwill previously recognised in reserves amounting to HK$33,216,000 has been transferred to the Group’s retained profits on 1st January, 2005. The adoption of HKFRS 3 has no material impact to the results and net assets for the current and prior periods.

• (2) Owner-occupied Leasehold Interest in Land

• In previous years, owner-occupied leasehold land and buildings were included in property, plant and equipment and measured using the cost model. In the current year, the Group has applied HKAS 17 “Leases”. Under HKAS 17, the land and buildings elements of a lease of land and buildings are considered separately for the purposes of lease classification, unless the lease payments cannot be allocated reliably between the land and buildings elements, in which case, the entire lease is generally treated as a finance lease. To the extent that the allocation of the lease payments between the land and buildings elements can be made reliably, the leasehold interests in land are reclassified to prepaid lease payments under operating leases, which are carried at cost and amortised over the lease term. This change in accounting policy has been applied retrospectively and the financial impact on the Group is set out in note 3.

(3) Investment Properties

In previous years, the Group’s investment properties were measured at open market values, with revaluation surplus or deficit credited or charged to investment property revaluation reserve unless the balance on this reserve was insufficient to cover a revaluation decrease, in which case the excess of the revaluation decrease over the balance on the investment property revaluation reserve was charged to the income statement. Where a decrease had previously been charged to the income statement and revaluation subsequently arose, that increase was credited to the income statement to the extent of the decrease previously charged. In the current year, the Group has, for the first time, applied HKAS 40 “Investment Property”. The Group has elected to use the fair value model to account for its investment properties which requires gains or losses arising from changes in the fair value of investment properties to be recognised directly in the profit or loss for the period in which they arise. The Group has applied the relevant transitional provisions in HKAS 40 and elected to apply HKAS 40 from 1st January, 2005 onwards. The amount held in investment property revaluation reserve at 1st January, 2005 has been transferred to the Group’s retained profits and the financial impact on the Group is set out in note 3.

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• (4) Financial Instruments

In the current year, the Group has applied HKAS 32 “Financial Instruments: Disclosure and Presentation” and HKAS 39 “Financial Instruments: Recognition and Measurement”. HKAS 32 requires retrospective application. HKAS 39, which is effective for accounting periods beginning on or after 1st January, 2005, generally does not permit to recognise, derecognise or measure financial assets and liabilities on a retrospective basis. The principal effects resulting from the implementation of HKAS 32 and HKAS 39 are summarised below:

Redeemable preference shares

HKAS 32 requires an issuer of a financial instrument to classify the instrument, or its component parts, on initial recognition as a financial liability, a financial asset or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, a financial asset and an equity instrument. The principal impact of HKAS 32 on the Group is in relation to redeemable preference shares issued by the Company that have contractual obligation to deliver cash to the holder. Previously, redeemable preference shares were classified as equity on the balance sheet. On adoption of HKAS 32, the redeemable preference shares were reclassified as financial liabilities retrospectively. Comparative profit for the previous years has been restated in order to reflect the dividends on the redeemable preference shares as finance costs and the financial impact on the Group is set out in note 3.

Financial assets and financial liabilities other than debt and equity securities

From 1st January, 2005 onwards, the Group classifies and measures its financial assets and financial liabilities, other than debt and equity securities (which were previously outside the scope of Statement of Standard Accounting Practice 24), in accordance with the requirements of HKAS 39. Under HKAS 39, financial assets are classified as “financial assets at fair value through profit or loss”, “available-for-sale financial assets”, “loans and receivables” or “held-to-maturity financial assets”. Financial liabilities are generally classified as “financial liabilities at fair value through profit or loss” or “financial liabilities other than financial liabilities at fair value through profit or loss (other financial liabilities)”. “Other financial liabilities” are carried at amortised cost using the effective interest method. The adoption of HKAS 39 has had no material effect on the Group’s retained profits.

• (5) Deferred Taxes related to Investment Properties

In previous years, deferred tax consequences in respect of revalued investment properties were assessed on the basis of the tax consequence that would follow from recovery of the carrying amount of the properties through sale in accordance with the predecessor Interpretation. In the current year, the Group has applied HK(SIC) Interpretation 21 “Income Taxes – Recovery of Revalued Non-Depreciable Assets” which removes the presumption that the carrying amount of investment properties is to be recovered through sale. Therefore, the deferred tax consequences of the investment properties are now assessed on the basis that reflect the tax consequences that would follow from the manner in which the Group expects to recover the property at each balance sheet date. In the absence of any specific transitional provisions in HK(SIC) Interpretation 21, this change in accounting policy has been applied retrospectively. There is no material deferred taxes impact on adoption of HK(SIC) Interpretation 21, and the comparative figures have not been restated.

(6) Initial Direct Costs incurred by Lessors under Operating Leases HKAS 17 has eliminated the choice of expensing initial direct costs incurred by lessors in negotiating and arranging an operating lease, the policy previously followed by the Group. Initial direct costs are now required to be added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease income. This change in accounting policy has been applied retrospectively. There is no material impact to the Group on this adoption.

3. SUMMARY OF THE EFFECTS OF THE CHANGES IN ACCOUNTING POLICIES

The effects of the changes in the accounting policies described in note 2 above are an increase in finance costs of approximately HK$709,000 in respect of the reclassification of preference shares dividends for the current year (2004: HK$2,281,000).

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The effects on the consolidated balance sheet of the changes in the accounting policies described in note 2 above are as follows:

As at 31st December, 2004 (originally stated) HK$’000 On adoption of HKAS 17 Property, plant and equipment 241,236 Prepaid lease payments – On adoption of HKAS 32 Redeemable preference shares (liability) – Total effects on net assets 241,236 Preference share capital 808 Preference share premium 47,692 Goodwill (33,216) Investment property revaluation reserve 2,780 Retained profits 245,602 Minority interests – Total effects on equity 263,666 Minority interests 44,665	As at 31st December, 2004 Adjustments (restated) HK$’000 HK$’000 (9,048) 232,188 9,048 9,048 (48,500) (48,500) (48,500) 192,736 (808) – (47,692) – – (33,216) – 2,780 – 245,602 44,665 44,665 (3,835) 259,831 (44,665) –	Adjustments HK$’000 – – – – – – 33,216 (2,780) (30,436) – – –	As at 1st January, 2005 HK$’000 232,188 9,048 (48,500) 192,736 – – – – 215,166 44,665 259,831 –

4. SEGMENT INFORMATION

Business segments

The Group is currently operating in two business segments, namely printing and property investment. Turnover represents the amounts received and receivable for goods sold, less returns, to outside customers during the year. The Group reports business segments as its primary segment. Segmental information about these businesses is presented below.

2005 CONSOLIDATED INCOME STATEMENT

2005 CONSOLIDATED INCOME STATEMENT
		Property
	Printing	investment	Consolidated
	HK$’000	HK$’000	HK$’000
TURNOVER – external	744,657	13,646	758,303
SEGMENT RESULTS	51,023	9,368	60,391
Unallocated corporate income			1,894
Unallocated corporate expenses			(1,336)
Finance costs			(7,196)
Profit before taxation			53,753
Income tax expenses			(11,140)
Profit for the year			42,613

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2004 CONSOLIDATED INCOME STATEMENT

2004 CONSOLIDATED INCOME STATEMENT
		Property
	Printing	investment	Consolidated
	HK$’000	HK$’000	HK$’000
			(restated)
TURNOVER – external	719,311	17,568	736,879
SEGMENT RESULTS	67,064	10,733	77,797
Unallocated corporate income			927
Unallocated corporate expenses			(1,843)
Finance costs			(8,058)
Profit before taxation			68,823
Income tax expenses			(9,399)
Profit for the year			59,424

5. OTHER INCOME

Included in other income is a gain on disposal of a subsidiary of approximately HK$5,828,000 (2004: Nil). Pursuant to a sale and purchase agreement dated 28th October, 2004 entered into with the minority shareholder of a 51%-owned subsidiary, 成都莊士中心開發有限公司 Chengdu Chuang’s Centre Development Company Limited (“Chengdu Chuang’s”), a company registered in the form of an equity joint venture and engaged in property investment in the People’s Republic of China (the “PRC”), the Group agreed to dispose of its entire interests in Chengdu Chuang’s (including the advance and accrued interest made by the Group to Chengdu Chuang’s) at a consideration of RMB100 million (equivalent to approximately HK$93.5 million) and the 6th floor of the Chengdu Chuang’s Centre.

6. PROFIT BEFORE TAXATION

Profit before taxation has been arrived at after charging:

Cost of inventories recognised as an expense Depreciation and amortisation of property, plant and equipment 7. INCOME TAX EXPENSES The charge (credit) comprises: Current tax: Hong Kong Profits Tax PRC income tax Under(over)provision in prior years: Hong Kong Profits Tax PRC income tax Deferred tax: Current year	2005 HK$’000 534,738 35,441 2005 HK$’000 4,881 6,536 11,417 132 – 132 (409) 11,140	2004 HK$’000 (restated) 495,300 34,750 2004 HK$’000 7,057 2,179 9,236 128 (46) 82 81 9,399

Hong Kong Profits Tax is calculated at 17.5% (2004: 17.5%) of the estimated assessable profit for the year.

PRC income tax is calculated at the applicable rates relevant to the PRC subsidiaries.

Pursuant to the relevant laws and regulations in the PRC, Dongguan Midas Printing Company Limited, a subsidiary of the Company, is entitled to an exemption from the PRC income tax for two years commencing from its first profit-making year of operation and a 50% relief from the PRC income tax for the following three years. During the year, Dongguan Midas Printing Company Limited was entitled to a 50% relief from the PRC income tax.

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8. DIVIDENDS TO ORDINARY SHAREHOLDERS OF THE COMPANY

Dividends paid 2003 final dividend of HK3.0 cents per share 2004 interim dividend of HK1.2 cents per share 2004 final dividend of HK3.3 cents per share 2005 interim dividend of HK1.2 cents per share	2005 HK$’000 – – 17,632 6,411 24,043	2004 HK$’000 16,029 6,412 – –
		22,441

The final dividend of HK3.3 cents (2004: HK3.3 cents) per share to ordinary shareholders of the Company whose names appear on the register of members on 29th May, 2006, amounting to approximately HK$17,632,000 (2004: HK$17,632,000), has been proposed by the Directors and is subject to approval by the shareholders in general meeting.

9. BASIC EARNINGS PER SHARE

The calculation of the basic earnings per share attributable to the ordinary shareholders of the Company is based on the profit for the year attributable to ordinary shareholders of the Company of HK$43,014,000 (2004: HK$58,330,000 as restated) and on 534,290,068 (2004: 534,290,068) ordinary shares in issue during the year.

Diluted earnings per share is not presented for the two years ended 31st December, 2005 as there were no potential ordinary shares in existence for both years.

10. TRADE RECEIVABLES

The Group has a policy of allowing credit periods ranging from 30 days to 180 days (2004: 30 days to 180 days) to its trade customers.

The aged analysis of trade receivables prepared on the basis of sales invoice date is stated as follows:

0 to 30 days 31 to 60 days 61 to 90 days 91 to 120 days 121 to 180 days More than 180 days _Less:_Impairment losses on trade receivables	2005 HK$’000 54,624 35,836 45,783 29,994 37,658 7,658 211,553 (4,271) 207,282	2004 HK$’000 55,567 32,427 36,304 40,058 40,326 13,072 217,754 (9,330) 208,424

11. TRADE PAYABLES

The aged analysis of trade payables prepared on the basis of supplier invoice date is stated as follows:

0 to 30 days 31 to 60 days 61 to 90 days 91 to 120 days More than 120 days	2005 HK$’000 28,327 29,842 24,655 15,730 48,377 146,931	2004 HK$’000 31,863 28,616 22,085 18,012 54,328
		154,904

DIVIDENDS

The Directors propose to declare a final dividend of HK3.3 cents (2004: HK3.3 cents) per ordinary share payable on or before 9th June, 2006 to ordinary shareholders whose names appear on the Company’s register of members on 29th May, 2006. An interim dividend of HK1.2 cents (2004: HK1.2 cents) per ordinary share had been paid during the year. Therefore, total dividends per ordinary share amounted to HK4.5 cents (2004: HK4.5 cents).

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MANAGEMENT DISCUSSION ON RESULTS

The Group’s printing business experienced a difficult operating year since the current management took charge in 2001. On the sales aspects, the industry suffered a severe price competition. However, the Group managed to increase its turnover for the year ended 31st December, 2005 by 3% to HK$758,303,000 (2004: HK$736,879,000), principally as a result of the increase in demand for printing business.

On the operational costs aspects, there were a number of unfavourable factors that had affected the Group’s profit margin. These factors related primarily to the rise in raw materials prices, including paper prices and oil prices, the continuous rise in labour costs as well as the appreciation of Renminbi. The negative effect of these higher operating costs had dampened the Group’s gross profit for the year ended 31st December, 2005, resulting in the fall in gross profit margin from 32% to 29% and gross profit decreased by 8% to HK$219,937,000 (2004: HK$237,940,000).

Other income of the Group during the year increased by 19% to HK$18,284,000 (2004: HK$15,401,000) whereas selling, administrative and operating expenses maintained at the same level as those of last year. Finance costs decreased by 11% to HK$7,196,000 (2004: HK$8,058,000) due to reduction in preference shares dividends paid during the year. Income tax expenses increased by 19% to HK$11,140,000 (2004: HK$9,399,000) mainly attributable to tax effect resulted from the disposal of interests in Chengdu Chuang’s Centre during the year. Combining the above effects, profit attributable to ordinary shareholders decreased by 26% to HK$43,014,000 (2004: HK$58,330,000). Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by about 15% to HK$94,725,000 (2004: HK$110,933,000).

BUSINESS REVIEW

(a) Printing Division

The core printing business of the Group comprised book printing and paper product printing. Turnover of the Group’s printing business amounted to HK$745 million (2004: HK$719 million) and capital expenditure of the printing division during the year amounted to HK$38 million.

• (1) Book Printing Book printing business focused mainly on multinational publishers and conglomerates in the United States, Europe, Australia, New Zealand and the People’s Republic of China (the “PRC”). During the year, the Group has diversified its customer base and provided quality value-added services and professional printing solutions to its customers.

To serve for the change in product mix and the rapid growth in book printing business, the Group has expanded its paper engineering, sourcing, design and product development teams to cater for the expansion of value-added services to clients. During the year, the Group installed two new 5-color printing presses and completed the construction of a new staff quarter in Yuanzhou to accommodate the expansion of the hand assembly team.

Each year, the Group participated in the most prestigious and recognisable international printing competitions. This year, the Group won 31 awards in 2005 Premier Print Awards in the United States, including 2 Benny awards in the booklet and brochure series and product/service catalogs categories. Besides, the Group won the Best Produced Book Award in the 2005 Hong Kong Print Award and has been awarded the championship award in the monotone/duotone category for 4 consecutive years since 2002.

• (2) Paper Product Printing Paper product printing business concentrated on a comprehensive range of products including packaging products, commercial printing, premium gift products, greeting cards, stationery items and paper bags. By providing its reliable and supportive customer service, the Group has maintained close business partnership with sizable corporations in the overseas and the PRC market.

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To cater for the growth in business and the digital prepress requirements, the Group has during the year installed a new CTP system and a 2-color printing press. In April 2006, the Group has also installed a UV printing press to expand its printing capability on PVC printing. In addition to the accreditation of ISO 9001, ISO 14001, OHSAS 18001 and the Integrated Management System Certificate, the Dongguan plant has been accredited the Code of Business Practices Certificates by the International Council of Toy Industries during the year.

(b) Property Division

During the year, the Group has completed the disposal of its 51% interests in Chengdu Chuang’s which holds the commercial podium and basements of Chengdu Chuang’s Centre in Chengdu, at the consideration of RMB100 million (HK$93.5 million) in cash and the 6th floor of the Chengdu Chuang’s Centre of about 45,800 sq. ft.. After the disposal, the Group holds a total gross floor area of 731,700 sq. ft. of investment properties in the PRC through the entire interests in Lambda Building, Yuen Sang Building and Chuang’s Garden in Huiyang and the 6th floor of Chengdu Chuang’s Centre in Chengdu. During the year, rental income of the property division amounted to HK$14 million (2004: HK$18 million).

PROSPECTS

In view of the competitiveness in the field, 2006 will be a challenging year for the printing industry. Through the strength of its strong management and operation, the Group will continue to maintain strategic partnership with its major customers. Meanwhile, the Group will strive to explore new customer base and new market presence. In 2006, the Group will continue to attend major international fairs in the United States, Europe and the PRC in order to meet with new customers.

The Group will expand its productivity and product variety especially in the area of children books, board books and gift and stationery items and will continue to hire sales and marketing personnel from overseas and in the PRC. The Group will set its objective of increasing its share of higher margin business by optimizing its product mix with prudent pricing strategy. In the meantime, the Group will persist with cost control measures in production, logistic operations and to further improve in production efficiency.

With our commitments to provide quality and professional printing solutions to its customers, the Group is confident to meet the challenges ahead.

LIQUIDITY AND FINANCIAL POSITIONS

Net asset value of the Group as at 31st December, 2005 amounted to HK$481 million, representing approximately HK$0.9 per ordinary share.

As at 31st December, 2005, the Group’s bank balances and cash amounted to HK$138 million (2004: HK$96 million) while bank borrowings amounted to HK$146 million (2004: HK$143 million), of which HK$100 million (2004: HK$107 million) are due from the second to fifth year. The Group’s net bank borrowings amounted to HK$8 million (2004: HK$47 million) and its net bank borrowings to equity ratio (being all bank and other borrowings less bank balances and cash as a ratio to shareholders’ funds) is 1.7% (2004: 10.2%). Most of the Group’s bank balances and borrowings were denominated in Hong Kong dollars, U.S. dollars and Renminbi, risk in exchange rate fluctuation would not be material. Interest on bank borrowings was charged at variable commercial rates prevailing in Hong Kong and the PRC. At the balance sheet date, certain assets of the Group with net book value of HK$27 million (2004: HK$103 million) had been pledged to secure borrowings granted to the Group.

During the year under review, the Group redeemed the remaining 80,833,334 Series B preference shares of the Company at HK$0.60 each, totaling HK$48.5 million. Accordingly, as at the date hereof, the Group has no outstanding Series B preference shares.

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CORPORATE GOVERNANCE

In order to ensure the compliance with the code provisions set out in Appendix 14 – Code on Corporate Governance Practices (the “CG Code”) of the Listing Rules which came into effect on 1st January, 2005, the Directors had in January 2005 approved that the term of office for each of Non-Executive and Independent Non-Executive Directors shall be 3 years commencing from 1st January, 2005 subject to retirement by rotation at least once every three years. In the Annual General Meeting (the “AGM”) of the Company held in May 2005, the Company had also approved certain amendments to its Articles of Association so as to bring them in line with the code provisions of the CG Code.

The Company has complied throughout the year ended 31st December, 2005 with the code provisions of the CG Code except the former chairman had not attended the AGM in accordance with rule E.1.2 of the CG Code and the Company intends to comply with it in future.

The Audit Committee has been established by the Company since 1999 to review and supervise the Company’s financial reporting process and internal controls. The Audit Committee has held meetings in accordance with the relevant requirements and has reviewed the results for the year ended 31st December, 2005. The current members of the Audit Committee are three Independent Non-Executive Directors, Mr. Shek Lai Him, Abraham, Dr. Li Sau Hung, Eddy and Mr. Yau Chi Ming and a Non-Executive Director, Mr. Dominic Lai.

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) contained in Appendix 10 of the Listing Rules. Having made specific enquiries of all Directors of the Company, the Company received confirmations from all Directors that they have complied with the required standard set out in the Model Code.

PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES

During the year, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities.

CLOSING OF REGISTER

The register of members will be closed from Thursday, 25th May, 2006 to Monday, 29th May, 2006, both days inclusive, during which period no transfer of shares will be effected. All transfers, accompanied by the relevant share certificates, must be lodged for registration with the Company’s share registrars in Hong Kong, Computershare Hong Kong Investor Services Limited at Shops 1712-1716 Hopewell Centre, 183 Queen’s Road East, Hong Kong, by no later than 4:00 p.m. on Wednesday, 24th May, 2006.

STAFF

As at 31st December, 2005, the Group, including its subcontracting processing plant, employed approximately 3,000 staff and workers, with their remuneration normally reviewed annually. The Group also provides its staff with other benefits including year-end double-pay, discretionary bonus, contributory provident fund, share options and medical insurance. Staff training is also provided as and when required.

PUBLICATION OF DETAILED ANNUAL RESULTS ON THE WEBSITE OF THE STOCK EXCHANGE

All the information required by paragraph 45 of Appendix 16 of the Listing Rules will be published on the website of the Stock Exchange in due course.

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GENERAL

As at the date of this announcement, Mr. Ko Sheung Chi, Mr. Kwong Tin Lap, Mr. Kwok Chi Fai, Miss Li Mee Sum, Ann, Mr. Tang Chow Ming, Paul and Mr. Wong Chi Sing are Executive Directors, Mr. Dominic Lai is a Non-Executive Director, Mr. Shek Lai Him, Abraham, Dr. Li Sau Hung, Eddy and Mr. Yau Chi Ming are Independent Non-Executive Directors of the Company.

By Order of the Board of Midas International Holdings Limited Ko Sheung Chi Chairman

Hong Kong, 18th April, 2006

“Please also refer to the published version of this announcement in The Standard.”

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