Persistence Gold Group Ltd - Interim / Quarterly Report 2010

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

APAC RESOURCES LIMITED 亞太資源有限公司[*]

(Incorporated in Bermuda with limited liability)

(Stock Code: 1104)

ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010

The board of directors (the “ Board ”) of APAC Resources Limited (the “ Company ”) is pleased to announce the unaudited interim results of the Company and its subsidiaries (collectively the “ Group ”) for the six months ended 30 June 2010, which has been reviewed by the auditors of the Group and the audit committee of the Company.

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 June 2010

Note Revenue 2 Revenue from sales of goods Net gain from sales of trading securities Change in fair value of trading securities Change in fair value of other f nancial assets Impairment loss on available-for-sale investments Interest income Other operating income 3	Group Six months ended 30 June 2010 2009 *HK$’000* HK$’000 (Unaudited) (Unaudited) 378,219 — 378,219 — 379 19,467 (97,873) 115,892 (3,326) — (20,630) — 2,940 1,132 41,426 33,839

Note
Purchases and direct freight charge
Equity-settled share option expenses
Salaries and allowances
Operating lease rental on buildings
Share of prof t less losses of associates
Exchange difference
Other operating expenses
Finance costs
4
Prof t before taxation
5
Income tax expenses
6
Prof t for the period
Attributable to:
Owners of the Company
Earnings per share
8
— Basic (HK cents per share)
— Diluted (HK cents per share)

Group
Six months ended 30 June
2010
2009
HK$’000
HK$’000
(Unaudited)
(Unaudited)
(301,570)
—
—
(12,373)
(6,143)
(7,636)
(1,444)
(1,544)
247,560
67,346
(6,048)
1,138
(11,220)
(7,614)
(656)
(13,412)
221,614
196,235
(78,232)
(32,864)
143,382
163,371
143,382
163,371
2.31
3.45
2.30
3.41

Details of dividend payable to owners of the Company are set out in note 7.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2010

Prof t for the period
Other comprehensive income, net of tax
Exchange differences arising on translation of
foreign operations
Share of other comprehensive income of associates
Exchange difference from sharing of interest in associates
Fair value change of available-for-sale investments
Reclassif cation adjustment for the cumulative
other comprehensive income to prof t or loss
upon disposal of partial interest in an associate
Total comprehensive income for the period
Total comprehensive income attributable to:
Owners of the Company

Group
Six months ended 30 June
2010
2009
HK$’000
HK$’000
(Unaudited)
(Unaudited)
143,382
163,371
(183)
1,183
(16,907)
105,710
(88,449)
159,035
(31,120)
33,154
(6,259)
—
(142,918)
299,082
464
462,453
464
462,453

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2010

Note
Assets
Non-current assets
Property, plant and equipment
9
Available-for-sale investments
10
Interest in associates
11
Total non-current assets
Current assets
Trade and other receivables
12
Trading securities
13
Available-for-sale investments
10
Pledged bank deposits
14
Cash and cash equivalents
14
Total current assets
Total assets
Equity and Liabilities
Capital and reserves
Share capital
15
Reserves
Accumulated losses
Equity attributable to owners of the Company
and total equity
Current liabilities
Trade and other payables
Other f nancial liabilities
Tax payable
Total liabilities
Total equity and liabilities

Group
30 June
31 December
2010
2009
HK$’000
HK$’000
(Unaudited)
(Audited)
1,916
992
44,626
96,376
2,386,711
2,357,583
2,433,253
2,454,951
86,952
59,415
525,325
71,899
3,889
—
89,375
89,324
556,942
318,203
1,262,483
538,841
3,695,736
2,993,792
692,213
569,034
3,069,260
2,885,162
(223,310)
(492,182)
3,538,163
2,962,014
127,955
10,020
3,326
—
26,292
21,758
157,573
31,778
3,695,736
2,993,792

Notes:

1. Basis of Preparation and Accounting Policies

These unaudited condensed consolidated fi nancial statements (“Interim Financial Statements”) are prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (“Listing Rules”), including compliance with Hong Kong Accounting Standard (“HKAS”) 34, “Interim Financial Reporting” issued by the Hong Kong Institute of Certifi ed Public Accountants (the “HKICPA”).

These Interim Financial Statements should be read in conjunction with the 2009 annual report.

This interim fi nancial report contains condensed consolidated fi nancial statements and selected explanatory notes. The notes include an explanation of events and transactions that are signifi cant to an understanding of the changes in fi nancial position and performance of the Group since the 2009 annual report. The condensed consolidated interim fi nancial statements and notes thereon do not include all of the information required for full set of fi nancial statement prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”, which term collectively includes HKASs and Interpretations).

In the current period, the Group has applied, for the fi rst time, the following new standards, amendments and interpretations (hereinafter collectively referred to as ‘‘new HKFRSs’’), issued by the HKICPA, which are effective for the current accounting period of the Group.

HKAS 1 (Amendment)	Presentation of f nancial statements
HKAS 27 (Revised)	Consolidated and separate f nancial statements
HKAS 38 (Amendment)	Intangible assets
HKAS 39 (Amendment)	Eligible hedged items
HKFRSs (Amendments)	Improvements to HKFRSs 2009
HKFRSs (Amendments)	Amendment to HKFRS 5 as part of improvements to HKFRSs 2008
HKFRS 1 (Revised)	First-time adoption of Hong Kong Financial Reporting Standards
HKFRS 1 (Amendments)	Additional exemptions for f rst-time adopters
HKFRS 2 (Amendments)	Group cash-settled share-based payment transactions
HKFRS 3 (Revised)	Business combinations
HK (IFRIC) – INT 17	Distribution of non-cash assets to owners

The adoption of the new HKFRSs had no material effect on how the results and fi nancial position for the prior accounting period have been prepared and presented. Accordingly, no prior period adjustment has been required.

The Group has not early applied the following new and revised HKFRSs that have been issued but are not yet effective, in these fi nancial statements. The directors of the Company anticipate that the application of these standards, amendments and interpretations will have no material impact on the fi nancial statements of the Group.

HKFRSs (Amendments) Improvements to HKFRSs 2010[2] HKAS 24 (Revised) Related party disclosures[4] HKAS 32 (Amendment) Classifi cation of rights issues[1] HKFRS 1 (Amendment) Limited exemption from comparative HKFRS 7 disclosure for fi rst-time adopters[3] HKFRS 9 Financial instruments (relating to the classifi cation and measurement of fi nancial assets)[5] HK(IFRIC) – INT 14 (Amendment) Prepayments of a minimum funding requirement[4] HK(IFRIC) – INT 19 Extinguishing fi nancial liabilities with equity instruments[3]

1 Effective for annual periods beginning on or after 1 February 2010 2 Effective for annual periods beginning on or after 1 July 2010 and 1 January 2011, as appropriate 3 Effective for annual periods beginning on or after 1 July 2010 4 Effective for annual periods beginning on or after 1 January 2011 5 Effective for annual periods beginning on or after 1 January 2013

2. Segment Information

The Group’s reportable segments under HKFRS 8 are as follows:

(i) trading of base metals ; and
(ii) trading of and investment in listed securities.

Segment revenue and result

The following is an analysis of the Group’s revenue and results by reportable segment.

Six months ended 30 June 2010

Revenue Gross sales proceeds from trading of and investment in listed securities Segment result Share of prof ts less losses of associates Impairment loss on available-for-sale investments Change in fair value of other f nancial assets Unallocated corporate incomes Unallocated corporate expenses Finance costs Prof t before taxation Income tax expense Prof t for the period	Trading of base metals *HK$’000* 378,219 — 75,837 (4,200)	Trading of and investment in listed securities *HK$’000* — 7,209 (106,334) (20,630) (3,326) (1) (335)	Group Total *HK$'000* 378,219 7,209 (30,497) 247,560 (20,630) (3,326) 42,725 (13,562) (656) 221,614 (78,232) 143,382

Six months ended 30 June 2009

Revenue Gross sales proceeds from trading of and investment in listed securities Segment result Share of prof t of associates Unallocated corporate incomes Unallocated corporate expenses Finance costs Prof t before taxation Income tax expense Prof t for the period	Trading of base metals HK$’000 — — (932) (7) (423)	Trading of and investment in listed securities HK$’000 — 56,850 133,162 (1,977) (12,600)	Group Total HK$'000 — 56,850 132,230 67,346 34,622 (24,551) (13,412) 196,235 (32,864) 163,371

Segment assets

An analysis of the Group’s assets by operating segment is set out below:

Trading of base metals Trading of and investment in listed securities Interest in associates Unallocated assets Consolidated assets	Group 30 June 2010 *HK$’000* (Unaudited) 581,546 639,774 1,221,320 2,386,711 87,705 3,695,736	31 December 2009 HK$’000 (Audited) 424,729 168,631 593,360 2,357,583 42,849 2,993,792

3. Other Operating Income

Dividend income
Commission income
Excess of the Group’s interest in the net fair value
of an associate’s identif able assets, liabilities and
contingent liabilities over cost of investment
Underwriting fee recovered
Gain on disposal of partial interest in an associate
Sundry income
4.
Finance Costs
Interest on margin f nancing
Interest on short-term loan
Interest on bank borrowings
5.
Prof t Before Taxation
Prof t before taxation has been arrived at after
charging/(crediting) the following :
Depreciation
Exchange loss/(gain), net
Legal and professional fees
Consultancy fee
Staff costs, including directors’ emoluments
— salaries and allowances
— equity-settled share option expenses
— directors’ quarter
— retirement benef ts scheme contributions,
net of nil forfeited contributions
Total staff costs

Group
Six months ended 30 June
2010
2009
HK$’000
HK$’000
(Unaudited)
(Unaudited)
473
17
—
2,251
—
21,244
—
8,641
40,606
—
347
1,686
41,426
33,839
Group
Six months ended 30 June
2010
2009
HK$’000
HK$’000
(Unaudited)
(Unaudited)
656
8,211
—
5,194
—
7
656
13,412
Group
Six months ended 30 June
2010
2009
HK$’000
HK$’000
(Unaudited)
(Unaudited)
421
329
6,048
(1,138)
1,909
(1,778)
1,072
927
6,143
7,636
—
12,373
643
119
248
266
7,034
20,394

6. Income Tax Expense

Income tax expense for the p eriod Hong Kong prof ts tax The PRC enterprise income tax Overseas tax provided Total income tax expense	Group Six months ended 30 June 2010 2009 *HK$’000* HK$’000 (Unaudited) (Unaudited) 4,535 12,769 — 254 4,535 13,023 73,697 19,841 78,232 32,864

Hong Kong profi ts tax has been provided for at the rate of 16.5% on the Group estimated assessable profi t for the six months period ended 30 June 2010 and 2009.

The PRC subsidiaries are subject to the PRC enterprise income tax at 25%.

The Group’s share of associates’ tax charge for the six months period ended 30 June 2010 is included in the overseas tax provided for the period above.

The Group has no signifi cant unprovided deferred taxation at the reporting date.

7. Dividend

No dividends had been paid or declared by the Company during the period (2009: nil).

8. Earnings Per Share

The calculation of the basic and diluted earnings per share attributable to owners of the Company is based on the following data:

Prof t for the purpose of basic and diluted earnings per share Weighted average number of ordinary shares used in the calculation of basic earnings per share Effect of dilutive potential ordinary share in respect of : — warrants — share options Weighted average number of ordinary shares for the purpose of diluted earnings per share	Group Six months ended 30 June 2010 2009 *HK$’000* HK$’000 (Unaudited) (Unaudited) 143,382 163,371 Number of shares 6,210,273,123 4,738,626,348 11,055,727 50,130,434 — — 6,221,328,850 4,788,756,782

The calculation of the diluted earnings per share did not assume the exercise of the Company’s outstanding share options as their exercise prices were higher than the average market price of the Company’s shares during the period.

9. Property, Plant and Equipment

During the period, the Group incurred approximately HK$1,344,000 (six months ended 30 June 2009: HK$8,000) on acquisition of property, plant and equipment.

10. Available-for-sale Investments

Non-current
Listed equity securities, Hong Kong, at fair value
Listed equity securities, overseas, at fair value
Current
Unlisted equity securities, overseas, at cost
Interest in Associates
Cost of investment in associates
Listed in overseas
Unlisted in the PRC
Share of post-acquisition prof ts and other comprehensive income,
net of dividends received
Less : impairment loss
Fair value of listed investments

Group
30 June
2010
31 December
2009
HK$’000
HK$’000
(Unaudited)
(Audited)
15,533
23,816
29,093
72,560
44,626
96,376
3,889
—
Group
30 June
2010
31 December
2009
HK$’000
HK$’000
(Unaudited)
(Audited)
2,114,898
2,141,216
22,848
22,848
552,989
497,543
(304,024)
(304,024)
2,386,711
2,357,583
3,167,491
3,573,413

11. Interest in Associates

According to the Listing Rules of the Australian Stock Exchange, the annual report of the Australian listed company should be published within three months from the end of the reporting date. The year end date of Metals X Limited (“MLX”) was 30 June 2010. No fi nancial information of MLX as at 30 June 2010 had been published. Therefore, the Group was unable to recognise its share of profi t or loss and other comprehensive income of MLX.

12. Trade and Other Receivables

Trade receivables Interest receivables Other receivables Other deposits and prepayments	Group 30 June 2010 31 December 2009 *HK$’000* HK$’000 (Unaudited) (Audited) 79,346 48,660 — 5,685 — 1 7,606 5,069 86,952 59,415

The Group allows an average credit period of 0 – 90 days to its trade customers.

All the trade receivables are not considered to be impaired and had not past due.

13. Trading Securities

Trading securities, at fair value Listed equity securities, in Hong Kong Listed equity securities, in overseas 14. Cash and Cash Equivalents Pledged bank deposits Cash at bank and in hand Cash held in securities accounts maintained in securities companies Less : Pledged bank deposits Cash and cash equivalents	Group 30 June 2010 31 December 2009 *HK$’000* HK$’000 (Unaudited) (Audited) 23,163 7,839 502,162 64,060 525,325 71,899 Group 30 June 2010 31 December 2009 *HK$’000* HK$’000 (Unaudited) (Audited) 89,375 89,324 493,381 318,036 63,561 167 646,317 407,527 (89,375) (89,324) 556,942 318,203

15. Share Capital

Number of shares Ordinary shares of HK$0.10 each Authorised: At 1 January 2010 8,000,000,000 Increase during the period 12,000,000,000 At 30 June 2010 20,000,000,000 Issued and fully paid: At 1 January 2010 5,690,343,455 Issue of shares upon exercise of warrants 131,784,535 Issue of shares under placement 1,100,000,000 At 30 June 2010 6,922,127,990	Amount HK$’000 800,000 1,200,000
	2,000,000

	569,034 13,179 110,000
	692,213

Details of the major changes in the Company’s share capital during the period ended 30 June 2010 are as follows :

(a) Pursuant to an ordinary resolution passed on 29 June 2010, the authorised share capital of the Company was increased to HK$2,000 million by the creation of 12,000 million shares of HK$0.1 each.
(b) On 23 April 2010, the Company completed a placing of 1,100 million new shares at the price of HK$0.5 per share, which raised gross proceeds of HK$550 million.

INTERIM DIVIDEND

The Board has resolved not to declare the payment of an interim dividend for the six months ended 30 June 2010 (2009: nil).

MANAGEMENT DISCUSSION AND ANALYSIS

Financial Results

For the six months ended 30 June 2010, the Group derived HK$378,219,000 (2009: nil) turnover in relation to its commodity trading business during a signifi cantly improved iron ore market environment in particular. However, the improved commodity trading markets were offset to a large extent by uncertain equity market conditions resulting in write downs of the Group’s equity portfolio. Notwithstanding, the Group achieved a net profi t attributable to shareholders of HK$143,382,000 (2009: HK$163,731,000) for the period.

Earnings per share (basic) for the six months ended 30 June 2010 was 2.31 HK cents (2009: 3.45 HK cents) and the net asset value per share as at 30 June 2010 was HK$0.51 (2009: HK$0.39).

Business Review

Trading and investment of listed securities

For the period under review, the global economic environment remained fragile and as a consequence equity markets were diffi cult particularly during the last quarter. For the businesses of trading of and investment in listed securities, the Group recorded gross sales proceeds of HK$7,209,000 (2009: HK$56,850,000) and a loss of HK$106,334,000 (2009: profi t of HK$133,162,000). The loss was mainly due to an unrealised loss in relation to the write down of trading securities amounting to HK$97,873,000 (2009: unrealised gain of HK$115,892,000).

As at 30 June 2010, the Group maintained a long term investment portfolio of available-forsale investments of HK$44,626,000 (2009: HK$117,741,000) and a short term portfolio of trading securities of HK$525,325,000 (2009: HK$334,908,000).

Trading in base metals

Commodity prices were signifi cantly improved during the period. This was particularly the case for iron ore and accordingly the Group enjoyed buoyant trading conditions on the sales side of it’s operations. Gross turnover for the period was HK$378,219,000 (2009: nil) and a profi t of HK$75,837,000 (2009: loss of HK$932,000).

Under the Group’s long term iron ore purchase agreements with Mount Gibson Iron Limited (“ MGX ”), the price is re-set annually based upon the Hamersely Benchmark price on 1 April. As at 1 April this year the Hamersely Benchmark price had not been set which remains the case as at the date of this announcement. Indications are that the Benchmark pricing system has ceased to exist and the parties to the contracts are currently re-negotiating the pricing formula pursuant to the terms of the contract. Interim pricing arrangements have been agreed which signifi cantly increase the Group’s iron ore purchase price in accordance with prevailing market prices.

PRINCIPAL ASSOCIATED COMPANY

The Group has two principal associated companies: MGX and Metals X Limited (“ MLX ”). As at the date of this announcement MGX has released its results for the year ended 30 June 2010. MLX has not yet released its results and accordingly only the results of MGX have been included in this announcement.

The share of profi t of associates (excluding MLX) (after tax) of the Group for the six months ended 30 June 2010 was HK$173,863,000 (2009: HK$47,505,000). As at 30 June 2010, the Group’s interest in associates amounted to HK$2,386,711,000 (2009: HK$1,291,805,000).

MGX

MGX had a successful half year period which included record sales numbers from its Koolan Island and Tallering Peak mines, as well as the start of construction at its Extension Hill project, where the Group also has a life of mine offtake agreement. Combined with strong iron ore prices, MGX has moved into a very strong fi nancial position and reported cash on hand and term deposits of A$347,404,000 as at 30 June 2010.

According to MGX’s preliminary fi nal report for the year ended 30 June 2010, MGX recorded total revenue of A$555,278,000 (equivalent to approximately HK$3,689,128,000) (2009: A$431,730,000, equivalent to approximately HK$2,694,535,000) and a net profi t of A$132,395,000 (equivalent to approximately HK$879,599,000) (2009: A$42,618,000 equivalent to approximately HK$265,990,000) for the year ended 30 June 2010.

The excellent results of MGX for the year underline the Group’s original investment strategy.

MLX

During the half year period, MLX settled the previously announced 50/50 Bluestone Mines Tasmanian Joint Venture with Yunnan Tin – Parksong Group for a cash payment of A$51,200,000. Part of the funds were reinvested into a 19.99% stake in West Australian zinc and copper miner, Jabiru Metals. Operationally, production improved at Renison and a 61% increase in underground reserves was reported. After period-end, MLX announced a landmark mining agreement with the Traditional Owners which is a signifi cant step in the development of the Wingellina nickel project.

Financial Review

Liquidity, Financial Resources and Capital Structure

As at 30 June 2010, the Group’s non-current assets amounted to HK$2,433,253,000 (2009: HK$1,410,870,000) and net current assets amounted to HK$1,104,910,000 (2009: HK$776,225,000) with a current ratio of 8.01 times (2009: 50.9 times) calculated on the basis of the Group’s current assets over current liabilities.

As at 30 June 2010, the Group had no borrowings (2009: nil) and has unused margin loan facilities available to it amounting to HK$483,000,000 in total secured some of the investment in listed associates, available-for-sale investments and trading securities.

During the period under review, the Group placed a further 1,100,000,000 shares at HK$0.50 per share to new investors raising an additional gross proceeds of HK$550,000,000. Thereby increasing its working capital base to enable it to take advantage of market opportunities as they arise.

As a result of this placement and the exercise of warrants, the issued share capital of the Group was increased from 5,690,343,455 (as at 31 December 2009) to 6,922,127,990. The rights attaching to the outstanding warrants expired on 4 February 2010.

Foreign Exchange Exposure

For the period under review, the Group’s assets were mainly denominated in Australian dollars and Hong Kong dollars while the liabilities were mainly denominated in Hong Kong dollars. As a substantial portion of the assets is held as long-term investments, there would be no material immediate effect on the cash fl ow of the Group from adverse movements in foreign exchange. In light of this, the Group did not actively hedge for the risk arising from the Australian Dollar denominated assets.

Pledge of Assets

As at 30 June 2010, the Group’s some of the investment in listed associates, available-forsale investments and trading securities of HK$1,872,543,000 (2009: HK$1,200,192,000) were pledged to a stock-broking fi rm to secure unused margin loan facilities available to the Group. The Group’s bank deposits of HK$89,375,000 (2009: HK$89,308,000) were pledged to banks to secure various trade banking facilities granted to the Group.

EMPLOYEES AND REMUNERATION POLICY

The Group ensured that its employees are remunerated according to the prevailing manpower market conditions and individual performance with its remuneration policies reviewed on a regular basis.

PROSPECTS

The Group’s two principal associates, MGX and MLX are well positioned to take advantage of the future demand for iron ore and tin respectively. The Group is also encouraged by the prospects for MLX’s other portfolio of assets.

Whilst the Group’s portfolio of assets held for sale and trading securities is subject to the current weakness in the equity markets, management remain confi dent of the portfolio’s longer term prospects.

As far as the Group’s commodity trading business is concerned it seems apparent that it will face some challenges arising from tighter margins over the second half of the year.

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

Save as disclosed in note 15 to the fi nancial statements, during the six months ended 30 June 2010, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities.

COMPLIANCE WITH THE CODE ON CORPORATE GOVERNANCE PRACTICES

For the six months ended 30 June 2010, the Company has complied with the code provisions of The Code on Corporate Governance Practices (“ CG Code ”) as set out in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”), except for the deviation in respect of the specifi c term of non-executive Directors’ appointment under code provision A.4.1 of the CG Code.

AUDIT COMMITTEE REVIEW

The Audit Committee has reviewed with the management the accounting policies and practices adopted by the Group and discussed internal controls and fi nancial reporting matters including a general review of the unaudited interim fi nancial report for the six months ended 30 June 2010. In carrying out this review, the Audit Committee has relied on a review conducted by the Group’s external auditors in accordance with the Hong Kong Standard on Review Engagements 2410 issued by the HKICPA as well as obtaining reports from management. The Audit Committee has not undertaken independent audit checks.

COMPLIANCE WITH THE MODEL CODE

The Company has adopted the “Model Code for Securities Transactions by Directors of Listed Issuers” as set out in Appendix 10 of the Listing Rules as the code (the “ Code ”) for dealing in securities of the Company by the Directors and supervisors. Having made specifi c enquiry, the Company confi rmed that all Directors and supervisors had complied with the required standard as set out in the Code for the six months ended 30 June 2010.

By Order of the Board APAC RESOURCES LIMITED Chong Sok Un Chairman

Hong Kong, 25 August 2010

As at the date of this announcement, the Directors of the Company are:

Executive Directors: Ms. Chong Sok Un (Chairman), Mr. Andrew Charles Ferguson (Chief Executive Offi cer), Mr. Peter Anthony Curry (Chief Financial Offi cer), Mr. Yue Jialin and Mr. Kong Muk Yin

Non-executive Directors: Mr. Lee Seng Hui, Mr. So Kwok Hoo and Mr. Liu Yongshun

Independent Non-Executive Directors: Mr. Wong Wing Kuen, Albert, Mr. Chang Chu Fai, Johnson Francis and Mr. Robert Moyse Willcocks

* For identifi cation purpose only