midas holdings limitedmidas.listedcompany.com/misc/ar2007.pdfmidas holdings limited 1 corporate...

Midas Holdings Limited

On Right Track

annual report 2007

MIDAS HOLDINGS LIMITED 1

Corporate Structure

Contents

1 Corporate Structure2 Corporate Profi le5 Corporate Information6 Message from the Executive Chairman8 Message from the Chief Executive Offi cer10 Board of Directors11 Executive Offi cers12 Financial Highlights13 Financial Contents

Corporate Offi ceChen Wei Ping, Executive ChairmanChew Hwa Kwang, Patrick, Chief Executive Offi cerTan Kai Teck, Chief Financial Offi cerYang Xiao Guang, General Manager (Business Development)

Jilin Midas Aluminium Industries Co., LtdWang Jiaxin, General Manager

Shanxi Wanshida Engineering Plastics Co., LtdMa Mingzhang, General Manager

Midas Beijing (Trading) Co., LtdChew Hwa Kwang, Patrick, General Manager

Annual Report 20072

Corporate Profi le

Incorporated on 17th of November 2000 as an investment holding

company, Midas Holdings Limited has grown over the years to gain

recognition as a leading manufacturer of aluminium alloy extrusion

products and polyethylene (“PE”) pipes for the rail transportation

and infrastructure sectors in the PRC.

Under the Midas Group are three business divisions, namely:

(a) the Aluminium Alloy Division,

(b) the PE Pipe Division and

(c) the Agency and Procurement Division.

These three divisions are strategically located in the PRC to take on

the opportunities as well as capitalise on the potential benefi ts of

the vast developments that are taking place in the infrastructure

and rail transport sectors.

Our customer base has evolved over the years to include MNCs

and PRC state-owned companies such as ALSTOM Transport

SA, Siemens Transportation Systems Group, CNR Changchun

Railway Vehicles Co., Ltd, CNR Tangshan Rolling Stock Works,

Nanjing SR Puzhen Rail Transport Co., Ltd, CSR Zhuzhou Electric

Locomotives, etc.

Besides our core business, we have a 32.5% stake in a licensed

metro train manufacturing company in the PRC, Nanjing SR Puzhen

Rail Transport Co., Ltd (“NPRT”).

Aluminium Alloy DivisionOur Aluminium Alloy Division, Jilin Midas Aluminium Industries Co.,

Ltd, has achieved the distinction of being the only manufacturer in

the PRC to be accredited with the Quality Focus Global Sourcing

Grade “A” international certifi cation by ALSTOM Transport SA

(“ALSTOM”), in accordance to Alstom Transport Standard. As a

testimony to our capability to manufacture large-section aluminium

alloy extrusion products, this certifi cation enables us to be the

global sourcing partner of all ALSTOM Transport units.

In addition, our Aluminium Alloy Division has entered into a Master

Agreement with Siemens Aktiengesellschaft, Berlin and Munich,

Transportation Systems Group (“Siemens”). Under this agreement,

Siemens will engage our Aluminium Alloy Division as a long term

high technology supplier of aluminium alloy extrusion products

in the context of long term partnership-based cooperation on

a global basis.

In recognition of our ability to supply the highest quality aluminium

extrusion products, our Aluminium Alloy Division was certifi ed as

an approved supplier to Changchun Bombardier Railway Vehicles

Co., Ltd (CBRC) in January 2006. CBRC is a joint venture between

Bombardier Transportation and China’s leading train manufacturer,

CNR Changchun Railway Vehicles Co., Ltd, with Bombardier

Transportation being the world leader in rail cars manufacturing.

We are now the only PRC certifi ed supplier for the world’s

three renowned train manufacturers, which is a testimony and

endorsement of the quality of our aluminium alloy extrusion

products. This recognition given by ALSTOM, Siemens and CBRC

has provided us the platform to expand and grow our business both

in the PRC and the international export markets.

In September 2007, our Aluminium Alloy Division was named

“2007 China’s Top Brand” by the General Administration of Quality

Supervision, Inspection and Quarantine of the People’s Republic of

China (“AQSIQ”) (国家质量监督检验检疫总局), in recognition of

our product quality and strong brand position.


Corporate Profi le

Our Aluminium Alloy Division currently has two production

lines, with annual production capacity of up to 20,000 tonnes.

Our production lines can produce large section aluminium

alloy extrusion products of up to 28 metres in length and 0.7

meters in width for profi les and 0.48 metres in diameter for

large diameter tubes and rods. Our large section aluminium

alloy products are used in a variety of industries. They are

utilised in the rail transportation industry to manufacture

body frames of high-speed trains and MRT/LRT trains. In

addition, our aluminium alloy products are also used in

power stations for power transmission purposes, electrical

energy distribution, transmission cables as well as production

of mechanical parts for industrial equipment.

In FY2004 and FY2005, we successfully exported our large

section aluminium alloy profi les to manufacture MRT body

frames for the Singapore Circle Line Project and the Metro

Oslo MRT project in Norway. We have further demonstrated

our capabilities in supplying aluminium alloy profi les of

international standards

and meeting the stringent

requirements of our

international customers

by securing the Valero

Rus Project for the Russian

market, the Desiro

Mainline Project for the

European and ex-European

markets and the Helsinki –

St. Petersburg high speed

train project in FY2007.

We are involved in many high profi le rail transport projects in the

PRC since 2003. Some of these projects include:

• Regional Line Phase 1 Project • Shanghai MRT Line 1 Extension 2 Project • Shanghai MRT Line 1 Extension Project • Shanghai Yangpu MRT Line Phase 1 Project • Shanghai Pearl Line Project • Nanjing MRT Project • Guangzhou MRT Line 3 Project • Tianjin MRT Project • Magnetic Levitation Train Prototype Project • Beijing - Tianjin High Speed Train Project • Changchun City Light Rail Transit Phase 1 Project • Shanghai MRT Line 2 Extension 1 Project • Shanghai Metro Line 9 Project • Shenzhen MRT Line 1 Extension Project • Shanghai Metro Line 7 Project • Nanjing Metro Line 2 Project • Shanghai Metro Line 10 Project

We are currently the market leader in supplying large section

aluminium alloy profi les for the railway industry in the PRC.

Signifi cantly, we have been appointed as the sole supplier for the

local content portions of two major high speed train projects in the

PRC, namely:

• Regional Line Phase 1 Project, by Changchun Railway Vehicles in collaboration with Alstom

• Beijing to Tianjin High Speed Train Project by Tangshan Rolling Stock Works in collaboration with Siemens

The recognition for our manufacturing capability of aluminium

alloy extrusion products positions us for greater growth in

the PRC market. Moving forward, we aim to expand our

presence internationally by capitalising on opportunities

emanating from the overseas market.

PE Pipe DivisionOur PE Pipe Division, manufactures and installs PE Pipes for

use in various types of piping networks, including gas piping

networks and water distribution networks.

Made of high density polyethylene, our PE Pipes are relatively

light-weight and chemically inert. Considered as viable

substitutes for traditional concrete and metal pipes, PE Pipes

are easier and safer to install, more durable and fl exible. A

proponent that is non-toxic in nature, our PE Pipes are cost

effi cient and possess high resistance to corrosion.

Broadly categorised into two types of PE Pipes, namely the

Gas PE Pipes and the Water PE Pipes which are manufactured

through the extrusion process, we manufacture the various

parts required in a piping network, including pipes, joints and

fi ttings.

Annual Report 20074

Corporate Profi le

Our markets segments include new and replacement markets

for the PRC municipal cities gas transmission and water

distribution infrastructure projects, where PE Pipes are used

in the cities’ transmission and distribution networks.

Agency and Procurement DivisionWe set up our Agency and Procurement Division in

November 2005. This division deals with the import, export

and wholesale of aluminium alloy, polyethylene pipes, metal

materials and other related products. It also serves as the

procurement centre for our two other business divisions. We

intend to leverage on our existing established relationships

and networks, by bringing together both suppliers and

customers, to expand our product range to our existing and

potential customers. In this manner, we can value add and

better serve the requirements and needs of our customers.

Joint VentureWe have a 32.5% equity stake in a Sino-foreign joint venture, Nanjing SR Puzhen Rail Transport Co., Ltd. (“NPRT”), which started commercial production in FY2007. Through NPRT, we are able to further entrench our position in the PRC railway industry as NPRT is only one of the four rolling stock companies in the PRC licensed to manufacture and sell metro trains on a nationwide basis. Many PRC cities have plans to build metro lines to facilitate urban transportation, we believe that NPRT will be a direct benefi ciary of the high growth metro train industry in the PRC given the limited number of players in

the market.

Since inception, NPRT, together with its consortium partners,

has secured four high profi le metro train projects in the PRC,

namely:

• Nanjing Metro Line 2 Project,

• Shanghai Metro Line 10 Project,

• Nanjing Metro Line 1 Extension Project and

• Shanghai Metro Line 2 Eastern Extension Project.

Our Aluminium Alloy Division has entered into a Master

Supply Agreement with NPRT to supply aluminium alloy

profi les for metro train projects that NPRT secure up till 31

December 2010.

Moving ForwardIn December 2007, we have also entered into a Framework

Agreement with Aluminium Corporation of China

(“Chinalco”), the largest aluminium producer in the PRC and

one of the largest producers of aluminium and alumina in the

world. Under the terms of the Framework Agreement, both

parties will actively collaborate in the business development

of aluminium alloy plates, sheets and profi les. The fi rst

collaboration will be in respect of China Northeast Light Alloy

Co., Ltd’s “thick aluminium alloy plates and sheets project”.

In addition, Chinalco will also seek collaboration with Midas

in the development and investment of aluminium alloy

extrusion profi les for rail car bodies.

In our comparatively short history, we are encouraged by

our current success. Moving forward, we are committed

to springboard towards greater expansion, growth value

creation, as well as strengthen our key competencies.


BOARD OF DIRECTORSMr. Chen Wei Ping, Executive Chairman

Mr. Chew Hwa Kwang, Patrick, Chief Executive Offi cer

Mr. Chew Chin Hua, Independent Director

Mr. Gay Chee Cheong, Independent Director

Mr. Chan Soo Sen, Independent Director

AUDIT COMMITTEEMr. Chew Chin Hua, Chairman

Mr. Gay Chee CheongMr. Chan Soo Sen

NOMINATING COMMITTEEMr. Gay Chee Cheong, Chairman

Mr. Chan Soo SenMr. Chew Chin Hua

REMUNERATION COMMITTEEMr. Chan Soo Sen, Chairman

Mr. Gay Chee CheongMr. Chew Chin Hua

COMPANY SECRETARYMs. Tan Cheng Siew @ Nur Farah Tan, ACIS

REGISTERED OFFICE2 Shenton Way#04-01 SGX Centre 1Singapore 068804Tel : (65) 6438 3052Fax : (65) 6438 3053Website : www.midas.com.sgCompany Registration No. 200009758W

AUDITORSBDO Raffl es5 Shenton Way #07-01UIC Building Singapore 068808Partner-in-charge: Mr. Chan Hock Leong(Appointed with effect since fi nancial year ended 31 December 2007)

SHARE REGISTRARCompact Administrative Services Pte Ltd3 Anson Road #27-01Springleaf Tower Singapore 079909

BANKERSOversea-Chinese Banking Corporation Limited65 Chulia StreetOCBC CentreSingapore 049513

Industrial & Commercial Bank of China, Liaoyuan City Branch518 Renmin Avenue, Liaoyuan City, Jilin Province, PRC 136200

Industrial & Commercial Bank of China, Shanxi BranchDa Yu West Street, Ruicheng County, Shanxi Province, PRC

SUBSIDIARIESGreen Oasis Pte Ltd2 Shenton Way#04-01 SGX Centre 1Singapore 068804Tel : (65) 6438 3052Fax : (65) 6438 3053

North East Industries Pte Ltd2 Shenton Way#04-01 SGX Centre 1Singapore 068804Tel : (65) 6438 3052Fax : (65) 6438 3053

Midas Ventures Pte. Ltd.2 Shenton Way#04-01 SGX Centre 1Singapore 068804Tel : (65) 6438 3052Fax : (65) 6438 3053

Jilin Midas Aluminium Industries Co., Ltd188 Fuzhen RoadLiaoyuan CityJilin Province PRC 136200 Tel : (86) 437 - 352 2510Fax : (86) 437 - 352 0483

Shanxi Wanshida Engineering Plastics Co., Ltd108 Yongle South RoadRuicheng CountyShanxi Province PRC 044600Tel : (86) 359 - 303 0518Fax : (86) 359 - 302 7431

Midas Trading (Beijing) Co., LtdNo. 7 Dong San Huan Middle RoadChao Yang DistrictRoom 703, Block A Beijing Fortune PlazaBeijing 100020Tel : (86) 10 - 6530 9595Fax : (86) 10 - 6530 9586

ASSOCIATED COMPANYNanjing SR Puzhen Rail Transport Co., Ltd.No. 208 Puzhu Middle Road, Nanjing, Jiangsu Province PRC 210031Tel : (86) 25 – 8584 7392Fax : (86) 25 – 8584 7392

IR CONTACTCitigate Dewe Rogerson, i.MAGE Pte Ltd1 Raffl es Place #26-02 OUB CentreSingapore 048616Tel : (65) 6534 5122Fax : (65) 6534 4171

Corporate Information

Annual Report 20076

Message from the Executive Chairman

Dear Shareholders,

On behalf of the Board of Directors, I am pleased to present to you our annual report for the fi nancial year ended 31 December 2007.

2007 was a fruitful year for Midas. This year, we focused on growing our market share in the PRC and increasing our penetration of the international market. We continue to secure new contracts throughout the year and our customers included top global train manufacturers and PRC licensed train manufacturers. We are fl attered by their continued support, which attest to our reputation for quality products.

During the year under review, we secured several major projects in the PRC. We were appointed as the main supplier for the Shanghai Metro Line 2 Extension 1 Project, Shanghai Metro Line 9 Project, Shenzhen Metro Line 1 Extension Project, Shanghai Metro Line 7 Project, Nanjing Metro Line 2 Project and Regional Line Phase 1 project.

While the fast-growing PRC market continues to be the main focus of our expansion plans, we are also seizing growth opportunities in the international markets, as the PRC is increasingly becoming the preferred sourcing hub for global train manufacturers. In 2007, we secured three projects in the international markets from Siemens and Alstom including:

• The Valero Rus Project in Russia, • The Desiro Mainline Project for European and ex-European

markets and • The Helsinki – St Petersburg High Speed Train Project.

The recognition and confi dence accorded to us by these global train manufacturers refl ect our high product quality and our ability to meet stringent international standards. We will continue to intensify our business development and marketing efforts overseas to increase our presence globally.

Our associated company, Nanjing SR Puzhen Rail Transport Co., Ltd (“NPRT”), made a strong debut in 2007. Since it began operations in 2007, it has secured four high profi le metro train projects in the PRC, namely the Nanjing Metro

Line 2 Project, the Shanghai Metro Line 10 Project, the Nanjing Metro Line 1 Extension Project, and the Shanghai Metro Line 2 Eastern Extension Project. Given that NPRT is one of four rolling stock companies approved to undertake metro train projects on a nationwide basis in China, we believe that NPRT will continue to be a key benefi ciary of the rapid infrastructural development in the PRC.

Apart from being known as a quality manufacturer, we were recognised in 2007 for having a strong brand name within the industry. In 2007, our Aluminium Alloy Division was named “2007 China’s Top Brand” by the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (“AQSIQ”) (国家质量监督检验检

疫总局). We were judged under the category of “Aluminium Alloy Materials (Railway Cars Structural Usage)” category, which reaffi rms our leadership position in this sector.

In the year ahead, we will not rest on our laurels and will strive to stay ahead of the market, and more importantly, meet the ever-increasing technical demands of our customers. We are committed to seeking out new growth opportunities for the Group and in turn, enhancing shareholders’ value.

On behalf of the Board of Directors, I would like to express my most sincere appreciation to our shareholders for their support. I would also like to take this opportunity to express my appreciation to our staff and management for their commitment to the Group, and to our customers, suppliers and business associates for their confi dence in us. Finally, as we enter 2008, we look forward to your continued support as we strive to take Midas to its next level of growth!

Chen Wei Ping Executive Chairman

Chen Wei PingExecutive ChairmanChen Wei PingExecutive Chairm


Message from the Executive Chairman

对麦达斯来说，2007年取得的成果可说得上是硕果累累。在这一年里，我们继续扩大在中国市场上的市场份额，并在国际市场上取得新突破。我们连续取得多个新项目的合约，其中的客户包括国际和国内顶尖的火车制造商。我们非常荣幸获得他们对我们高品质产品的持续支持。

在这一年里，我们在中国继续获选参与多个大

型项目，包括成为以下项目主要的供应商:上海地铁2号线延伸线第一期项目、上海地铁9号线项目、深圳地铁1号线延伸线项目、上海地铁7号线项目、南京地铁2号线项目与区域线第一阶段项目。

在着重于发展中国市场的同时，我们也不断在国际市场上争取发展机会。随着中国逐渐成为国际火车制造商的首选采购对象的枢纽，我们很荣幸能在国际市场上获选参与三项 Siemens 与 Alstom 的项目:

• 俄罗斯的 Valero Rus 项目• 欧洲及欧洲以外市场的 Desiro Mainline 项目• 赫尔辛基 - 圣彼得堡高速列车项目

这些国际火车制造商对我们的信心与支持证明我们高品质的产品符合严格国际标准。我们将继续加强我们在国际市场上的销售网络，以扩大我们在国际上的市场份额。

我们的合资公司，南京南车浦镇城轨车辆有限责任公司(“NPRT”)，在2007年取得良好的成绩。从2007年1月份开始投产以来，NPRT已取得四个大型的城轨项目，包括南京地铁2号线项目、上海地铁10号线项目、南京地铁1号线延伸线项目与上海2号线东延线项目。NPRT是获准承接中国全国城市城轨项目的四家拥有资质的城轨车辆厂之一，我们相信NPRT将能够抓紧蓬勃发展的城轨基建业所带来的发展机会。

我们除了在品质上获得同业的认同,品牌方面也在过去一年里受到认可。在2007年,吉林麦达斯铝业的产品获得国家质量监督检验检疫总局认可为“中国名牌产品 [铝合金型材(轨道车辆结构用)]”。能够获得此项肯定，再次证明我们在这行业的领导地位。

在未来的一年里，我们将继续走在市场的前端。更重要的是，我们将力求达到并超越客户不断提升的技术要求。我们会继续努力追求发展机会，并且尽心尽力地提升股东价值。

我谨此借这个机会代表全体董事会，致以我们的股东最真诚的感谢，谢谢您坚定的支持。感谢我们的职员和管理层对公司的投入，以及客户、供应商和业务伙伴的信赖。我们期待您在 2008年继续支持我们，把麦达斯带入另一个高峰！

陈维平执行主席

亲爱的股东们：

很荣幸再次为您呈上麦达斯控股截至2007年12月31日财政年的年报。

Annual Report 20078

Dear Shareholders,

In 2007, we further entrenched our position as the leading manufacturer of aluminium alloy extrusion products for the rail transportation sector in the PRC. With the robust speed of development in the rail transportation networks in the PRC, our Aluminium Alloy Division, Jilin Midas Aluminium Industries Co., Ltd (吉林麦达斯铝业有限公司) continued its strong performance, driving the Group’s overall growth.

For the full year ended 31 December 2007, our net profi t

grew 24.8% to S$31.9 million on the back of a 34.0%

increase in Group’s revenue to S$140.4 million.

Our Aluminium Alloy Division was the key contributor to

the Group’s growth in 2007, accounting for 76.9% of total

revenue and 92.5% of the Group’s profi t before interest

and tax. Revenue from the Aluminium Alloy Division jumped

50.3% to S$107.9 million in 2007, up from S$71.8 million in

the fi nancial year ended 31 December 2006.

Strengthening Our Leadership Position

Over the past few years, we have been steadily building our

track record as a leading supplier of quality aluminium alloy

profi les for rail car bodies in the PRC. Since 2003, we have

participated in more than 20 projects in the PRC and the

international markets.

In 2007, our Aluminium Alloy Division secured a number

of contracts in the PRC including: Shanghai Metro Line

2 Extension 1 Project, Shanghai Metro Line 9 Project,

Shenzhen Metro Line 1 Extension Project, Shanghai Metro

Line 7 Project, Nanjing Metro Line 2 Project and Regional Line

Phase 1 project. We are the main supplier of aluminium alloy

extrusion profi les for these projects, refl ecting our customers’

confi dence in our high quality products.

Besides projects in the PRC, our Aluminium Alloy Division

also made signifi cant progress in growing the international

markets. During the year, we successfully secured international

projects from Alstom and Siemens, including: Valero Rus

Project in Russia, Desiro Mainline Project for European and

ex-European markets and Helsinki – St Petersburg High

Speed Train Project. Our ability to secure projects from these

established multinational corporations – which possess

stringent international standards and appoint only the

highest quality suppliers - speak for our potential to compete

in the global arena.

2007 also marked the maiden contribution from our

associated company, Nanjing SR Puzhen Rail Transport Co.,

Ltd (“NPRT”). In 2007, NPRT contributed S$1.3 million to

our bottomline. Together with its consortium partners, NPRT

has since secured four high profi le metro train projects in the

PRC, namely the Nanjing Metro Line 2 Project, the Shanghai

Metro Line 10 Project, the Nanjing Metro Line 1 Extension

Project, and the Shanghai Metro Line 2 Eastern Extension

Project. Going forward, we believe NPRT will continue to win

new contracts and improve on its production effi ciency.

Just before the year ended, we made another signifi cant

breakthrough with a Framework Agreement signed with

Aluminum Corporation of China (“Chinalco”), the largest

aluminium producer in the PRC and one of the largest

producers of aluminium and alumina in the world. Under

the agreement, we will actively explore collaboration in the

business development of aluminium alloy plates, sheets

and profi les. We will leverage on each other’s competitive

strengths and support each other in strategic co-operations

that would be mutually benefi cial to both parties.

Chew Hwa Kwang, PatrickChief Executive Offi cer

Message from the Chief Executive Offi cer

Chew HwChief Exe


Message from the Chief Executive Offi cer

Under this agreement, the fi rst collaboration by both parties

will be in respect of China Northeast Light Alloy Co., Ltd.’s

(“NELA”) (东北轻合金有限责任公司) “thick aluminium

alloy plates and sheets project”. Chinalco has a controlling

stake in NELA and detailed terms of the collaboration will be

fi nalised at a later date. In addition, Chinalco will also seek

collaboration with Midas in the development and investment

of aluminium alloy extrusion profi les for rail car bodies.

Strong Outlook and Prospects

With infrastructural and transportation development as

integral parts of the PRC’s 11th fi ve-year plan, we are

optimistic about the industry outlook for Midas as the PRC

government accelerates investments in public railways and

metro networks to support the country’s economic growth.

With growing urbanisation

and increasing population

in cities, major cities in

the PRC are building new

metro lines or expanding

their existing metro

networks to facilitate

urban transportation. In

addition, the improvement

of inter-city transportation

is also leading to more

opportunities for railway

projects across the country.

Meanwhile, our strategic partnership with Chinalco will also

open doors to opportunities in the market of aluminium

alloy sheets and plates. We are in the midst of discussions

with Chinalco on potential collaborations and will update

shareholders on developments once details are fi nalised.

We will also continue to further our expansion into the

international markets, especially in Europe and Asia. As

global train manufacturers increasingly turn to the PRC for

their sourcing needs, we believe that demand for quality

suppliers that can meet stringent international standards can

only increase. Given that we have obtained international

certifi cations from the world’s leading train companies –

Alstom and Siemens, we are in a strong position to capitalise

on the rising outsourcing trend to the PRC to secure more

international contracts.

Words of Thanks

In conclusion, I would like to take this opportunity to express

my appreciation to all shareholders who have supported

Midas and believed in us over the years. In addition, I would

like to thank all our valued customers and business partners

who have given us the many opportunities for growth. To

our Board of Directors, thank you for the invaluable advice

you have contributed to the Group. Last but not least, my

gratitude goes out to all staff of Midas who have worked

hard to make 2007 a fruitful year. Looking ahead, we are

optimistic about Midas’ outlook and prospects in 2008.

We look forward to delivering another year of growth for

shareholders!

Chew Hwa Kwang, Patrick

Chief Executive Offi cer

Annual Report 200710

since November 2000. He played a major role in the listing of our Company’s shares on the Singapore Exchange Securities Trading Limited on 23 February 2004. Mr. Chew has more than twenty years of management experience and currently holds directorship in several companies in Singapore.

Mr. Chew is concurrently the General Manager of our Agency and Procurement Division, responsible for the overall business operations of this division.

Mr. Chew Chin HuaIndependent DirectorMr. Chew Chin Hua, age 52, was appointed as an Independent Director of our Company on 6 January 2004. Mr. Chew is a member of the Association of Chartered Certifi ed Accountants and the Institute of Certifi ed Public Accountants in Singapore and has more than twenty years of experience in the accounting and auditing profession. He is also a director of several other listed companies in Singapore.

Mr. Gay Chee CheongIndependent DirectorMr. Gay Chee Cheong, age 51, was appointed as an Independent Director on 23 June 2004. Mr. Gay co-founded 2G Capital Pte Ltd, a private equity investment company investing in the Asia Pacifi c economies. Prior to 2G Capital, Mr.

Mr. Chen Wei PingExecutive ChairmanMr. Chen Wei Ping, age 47, was appointed as our Director on 21 August 2002 and has been Executive Chairman since March 2003. Mr. Chen is instrumental in developing and steering our Group’s corporate directions and strategies. He is responsible for the effective management of business relations with our strategic partners. In addition, Mr. Chen spearheaded the listing of our Company’s shares on the Singapore Exchange Securities Trading Limited on 23 February 2004. Mr. Chen has more than twenty years of management experience and currently holds directorship in several companies in the PRC and Singapore. He holds a Bachelor Degree in Economics from Jilin Finance & Trade College (PRC) and a Master Degree in Economics from Jilin University (PRC).

Mr. Chew Hwa Kwang, PatrickChief Executive Offi cerMr. Chew Hwa Kwang, Patrick, age 45, is a founding member of our Group and is our Chief Executive Offi cer who is responsible for the overall operations and fi nance of our Group and its fi nancial well-being. Mr. Chew is responsible for identifying future business opportunities and services which our Group may provide to drive future growth. Mr. Chew is also in charge of overseeing the day-to-day management of our Group as well as our Group’s strategic and business development. Mr. Chew has served as our Executive Director

Gay was the Group Executive Director of JIT Holdings Limited and the Managing Director to the various JIT companies in Singapore, China and Europe. Mr. Gay holds directorships in several listed and non-listed companies in Singapore. Mr. Gay holds a Bachelor Degree in Electronics Engineering (Honours) from the Royal Military College of Science Shrivenham, UK, a Bachelor Degree in Economics (Honours) from the University of London, UK and a Master of Business Administration from the National University of Singapore.

Mr. Chan Soo SenIndependent DirectorMr. Chan Soo Sen, age 51, was appointed as an Independent Director of our Company on 29 June 2006. He is currently the Director, Chairman’s Offi ce and Director, Group Human Resources for Keppel Corporation Limited, and Member of Parliament for Joo Chiat Constituency. Mr. Chan was previously a Minister of State and has served in several ministries including the Ministry of Education, Ministry of Trade and Industry and Ministry of Community Development, Youth and Sports. Before entering the political scene, Mr. Chan started up the China-Singapore Suzhou Industrial Park as the founding CEO in 1994, laying the foundation and framework for infrastructure and utilities development. Mr. Chan holds a Master in Management Science from the University of Stanford, United States of America and is a director of a few listed companies in Singapore.

Board of Directors

1

2

3

4

5

1 Mr. Chen Wei Ping (Executive Chairman)

2 Mr. Chew Hwa Kwang, Patrick (Chief Executive Offi cer)

3 Mr. Chew Chin Hua (Independent Director)

4 Mr. Gay Chee Cheong (Independent Director)

5 Mr. Chan Soo Sen (Independent Director)

2


Executive Offi cers

Mr. Tan Kai Teck, Chief Financial Offi cerMr. Tan Kai Teck, age 38, is our Chief Financial Offi cer responsible for our fi nancial management and the reporting functions of our Group. Mr. Tan holds a Bachelor Degree in Accountancy (Second Upper Class Honours) from the Nanyang Technological University and is a member of the Institute of Certifi ed Public Accountants of Singapore.

Mr. Yang Xiao Guang, General Manager (Business Development)Mr. Yang Xiao Guang, age 48, is our General Manager (Business Development) responsible for the execution and implementation of the development and business strategies of our Group. He is also involved in new business development and new venture management. Mr. Yang holds a Bachelor Degree in Economics from Jilin Finance & Trade College (PRC) and a Master Degree in the Science of Law from Jilin University (PRC).

Mr. Wang Jiaxin, General ManagerMr. Wang Jiaxin, age 52, is the General Manager of Jilin Midas Aluminium Industries Co., Ltd. Mr. Wang is responsible for the overall business operations of the Aluminium Alloy Division. Mr. Wang holds a Bachelor Degree in Mechanical Engineering from Jilin University (PRC).

Mr. Ma Mingzhang, General ManagerMr. Ma Mingzhang, age 54, is the General Manager of Shanxi Wanshida Engineering Plastics Co., Ltd. Mr. Ma is responsible for the overall business operations of the PE Pipe Division. Mr. Ma holds a Bachelor Degree in Industrial Automation Instrument from Harbin Industry University (PRC) and a Master Degree in Science and Engineering from Chengdu Science and Technology University (PRC).


Financial Highlights

2007 2006 2005 2004 2003 S$’ 000 S$’ 000 S$’ 000 S$’ 000 S$’ 000

Revenue 140,399 104,764 70,473 60,208 33,964Gross profi t 45,134 34,241 26,160 23,620 13,876Profi t before income tax 35,319 27,723 21,103 18,521 8,954Profi t attributable to equity holders 31,914 25,567 18,322 15,302 8,954Shareholders’ funds 181,574 162,894 91,877 78,379 7,837Non current assets 109,452 101,577 48,241 36,891 39,308Current assets 111,280 103,241 68,396 67,666 28,151Current liabilities 36,198 38,978 22,179 23,688 36,228Non current liabilities 2,960 2,946 2,581 2,490 23,394

For the Year (S$’ 000) 2007 2006 Change (%)

Revenue 140,399 104,764 34.0Gross profi t 45,134 34,241 31.8Profi t before income tax 35,319 27,723 27.4Profi t attributable to equity holders 31,914 25,567 24.8

At Year End (S$’ 000)

Shareholders’ funds 181,574 162,894 11.5Non current assets 109,452 101,577 7.8Current assets 111,280 103,241 7.8Current liabilities 36,198 38,978 -7.1Non current liabilities 2,960 2,946 0.5

Financial RatiosNet Tangible Assets per Share (cents) 21.48 19.35 11.0Basic Earnings per Share (cents) 3.78 3.18 18.9

FY 2007 --

FY 2006 --

FY 2005 --

FY 2004 --

FY 2003 --

Revenue (S$’000)

33,964

60,208

70,473

104,764

140,399

FY 2007 --

FY 2006 --

FY 2005 --

FY 2004 --

FY 2003 --

Gross Profi t (S$’000)

13,876

23,620

26,160

34,241

45,134

FY 2007 --

FY 2006 --

FY 2005 --

FY 2004 --

FY 2003 --

Profi t before income tax (S$’000)

8,954

18,521

21,103

27,723

35,319

FY 2007 --

FY 2006 --

FY 2005 --

FY 2004 --

FY 2003 --

Profi t attributable to equityholders of the Company (S$’000)

8,954

15,302

18,322

25,567

31,914

Midas Holdings Limited

2 Shenton Way #04-01 SGX Centre 1, Singapore 068804Tel : (65) 6438 3052Fax : (65) 6438 3053Company Registration No. 200009758W

www.midas.com.sg

14 Financial Review16 Risk Management 17 Corporate Governance Statement22 Directors’ Report25 Statement by the Directors26 Independent Auditors’ Report27 Balance Sheets27 Consolidated Profi t And Loss Account28 Statement of Changes in Equity31 Consolidated Statement of Cash Flow32 Notes to the Financial Statements58 Statistics of Shareholdings58 Substantial Shareholders59 Notice Of Annual General Meeting Proxy Form

Financial Statements


Financial Review

REVENUE

Our Group’s principal activities for FY2007 are as follows:

a. manufacture of large section aluminium alloy extrusion products for use mainly in the following:

• Rail Transport Industry - We produce aluminium alloy profi les which are used to manufacture train car body frames for use by high-speed trains, MRT and LRT trains;

• Power Industry - We produce aluminium alloy tubings which are used in power stations for power transmission purposes, electrical energy distribution and transmission cables ; and

• Others - We produce aluminium alloy rods and other specialized profi les which are used in the production of mechanical parts for industrial machinery.

b. manufacture and installation of PE Pipes for use in various types of piping networks including gas piping networks and water distribution networks.

c. import, export and wholesale of aluminium alloy, PE Pipes, metal materials and other related products.

Our revenue by business activities is set out below:

Business segments (S$’ 000) FY2007 FY2006 Change %Aluminium Alloy Division 107,897 71,766 36,131 50.3

PE Pipe Division 13,469 21,137 (7,668) (36.3)

Agency & Procurement Division 19,033 11,861 7,172 60.5

Total 140,399 104,764 35,635 34.0

Our Group’s revenue increased by about S$35.6 million or 34.0% from S$104.8 million in FY2006 to S$140.4 million in FY2007. Our Aluminium Alloy Division recorded an increase in revenue by approximately 50.3% or S$36.1 million in FY2007. This was mainly due to higher business volume as a result of the growth experienced in the rail transport industry and infrastructural developments in the PRC. In addition, we were able to fulfi l more customers’ orders through our new 55MN aluminium alloy extrusion production line which became operational in July 2006. Our PE Pipe Division recorded a decrease in revenue by 36.3% or S$7.7 million in FY2007 due to competition. Our Agency & Procurement Division revenue increase by 60.5% or S$7.2 million from S$11.9 million in FY2006 to S$19.0 million in FY2007.

For FY2007, revenue contribution from our Aluminium Alloy Division accounted for a higher percentage of Group’s revenue as compared to FY2006. Aluminium Alloy Division accounted for about 76.9% of our Group’s revenue for FY2007 as compared to about 68.5% for FY2006 whereas PE Pipe Division accounted for about 9.6% and 20.2% of our Group’s revenue for FY2007 and FY2006 respectively. The Agency and Procurement Division accounted for about 13.5% of our Group’s revenue for FY2007 compared with 11.3% for FY2006. Our Aluminium Alloy Division is currently well placed to compete more effectively, especially in supplying aluminium alloy profi les for use as train car body frames in the rail transport industry. Our Aluminium Alloy Division is certifi ed by the world’s three leading train manufacturers, namely ALSTOM, Siemens and Changchun Bombardier. We are the only PRC manufacturer that has obtained such certifi cations from these renowned train manufacturers. We believe that such recognition would provide us the platform to expand our business both in the PRC and the international markets. We have demonstrated our capabilities in supplying aluminium alloy profi les of international standards and meeting the stringent requirements of our international customers by securing more contracts in the international markets. In FY2007, we were successful in securing 3 international contracts from Siemens and Alstom. We have also been appointed as the sole supplier for the local content portions of 2 high profi le high speed trains projects in the PRC namely, Regional Line Phase 1 Project and Beijing to Tianjin High Speed Train Project. Therefore, going forward, we expect contributions from the Aluminium Alloy Division to increase further.

The tables below show the revenue segmentation in percentage terms by end usage at the Aluminium Alloy Division and the PE Pipe Division for the fi nancial year ended 31 December 2007:

Aluminium Alloy Division

FY2007%

FY2006%

Rail Transport Industry 52.1 46.1

Power Industry 22.2 24.2

Others 25.7 29.7

Total 100.0 100.0

Sales by end usage indicate that revenue contribution from the rail transport industry is still the major revenue contributor, contributing approximately 52.1% of the revenue for the Aluminium Alloy Division. “Others” segment included mainly revenue from the supply of aluminium alloy rods and other specialized profi les for industrial equipment.

Moving ahead, we expect contributions from the rail transport industry to increase in FY2008 as evidenced by the quantum of the recent contracts that we have secured and the increasing demand from this industry.


Financial Review

PE Pipe Division

FY2007%

FY2006%

Gas Industry 84.3 92.5

Water Industry 14.2 2.7

Others 1.5 4.8

Total 100.0 100.0

In terms of end usage, gas pipes industry is still the main revenue contributor at about 84.3% for FY2007. Going forward, we will continue to work towards strengthening our foothold in the new and replacement markets for the PRC municipal cities’ gas transmission and water distribution infrastructure projects.

PROFITABILITY

Our gross profi t by business activities is set our below:

Business segments(S$’ 000) FY2007 FY2006 Change %Aluminium Alloy Division 40,306 27,373 12,933 47.2

PE Pipe Division 3,836 6,402 (2,566) (40.1)

Agency & Procurement Division 992 466 526 112.9

Total 45,134 34,241 10,893 31.8

Gross Profi t Margin (%) 32.1 32.7

Gross profi t increased by approximately S$10.9 million or 31.8% from S$34.2 million in FY2006 to S$45.1 million in FY2007. This was brought about by higher gross profi ts experienced at our Aluminium Alloy Division due to increased business volume and increase contribution from our Agency and Procurement Division, offset by the decline in gross profi t experienced at our PE Pipe Division due to increased competition.

Our Group’s gross profi t margin for FY2007 was 32.1% versus 32.7% in FY2006. Gross profi t margin for our Aluminium Alloy Division remained stable at about 38% during the two fi nancial years. PE Pipe Division saw a decline in gross profi t margin from approximately 30.3% in FY2006 to approximately 28.5% in FY2007. The gross profi t margin of our Agency and Procurement Division increased from approximately 4% in FY2006 to approximately 6% in FY2007 due to sales of higher margin products.

Our profi t before income tax by business activities is set out below:

Business segments(S$’ 000) FY2007 FY2006 Change %Aluminium Alloy Division 36,784 25,400 11,384 44.8PE Pipe Division 2,677 4,870 (2,193) (45.0)Agency & Procurement Division 302 298 4 1.3Corporate Division (3,727) (2,088) (1,639) 78.5Unallocated interest expenses (1,973) (757) (1,216) 160.6Share of profi t of an associated company 1,256 - 1,256 NMTotal 35,319 27,723 7,596 27.4

NM – Not meaningful

Other operating income of approximately S$2.5 million comprised mainly interest income from deposits and a government grant amounting to S$1.5 million received by our Aluminium Alloy Division.

Selling and distribution expenses increased by approximately S$1.1 million, driven by the higher business volume recorded at our Aluminium Alloy Division.

Administrative expenses increased by about S$1.9 million in FY2007 mainly as a result of higher administrative expenses incurred at our Aluminium Alloy Division as a result of higher sales and expanded scope of business, increase in travelling expenses and share-based payment expenses of about S$1.6 million.

Finance costs increased by about S$1.2 million in FY2007 due to a higher level of borrowings by our Aluminium Alloy Division in FY2007 as compared to FY2006.

FY2007 marked the maiden contribution from our associated company, Nanjing SR Puzhen Rail Transport Co., Ltd, which started commercial operations in January 2007, contributed approximately S$1.26 million in FY2007.

The increase in income tax expense for FY2007 was due to higher profi ts. The income tax expense for FY2006 included a tax rebate of S$0.9 million granted to our subsidiary, Jilin Midas Aluminium Industries Co., Ltd.

FY2007 ended with net profi t attributable to shareholders of about S$31.9 million which represented a 24.8% increase over FY2006.


Business Risk

Our revenue is mainly derived in the PRC from the sales of aluminium alloy extrusion products, PE Pipes as well as trading of aluminium alloy, PE pipes, metal materials and other related products. We intend to further our growth opportunities by marketing our products overseas to minimise any over reliance on the local PRC markets. During the previous fi nancial years, the Group has successfully exported its aluminium alloy extrusion profi les for the Singapore Circle Line Project and the Metro Oslo MRT Project in Norway. In FY2007, we have further secured three contracts to supply aluminium alloy profi les for the Valero Rus Project in Russia, the Desiro Mainline Project for the European and Ex-European markets and the Helsinki – St. Petersburg high speed train project.

The raw materials used in our manufacturing processes are plastic resins (for our PE Pipe Division) and aluminium alloy billets (for our Aluminium Alloy Division). Raw materials make up a signifi cant component of the cost of sales. We are therefore vulnerable to fl uctuations in the prices of these raw materials and components. We generally do not purchase or store raw materials in advance. Purchases of raw materials are generally made in response to customers’ order. Our Group makes use of this natural hedge to minimise any impact of fl uctuations in raw materials prices on our Group’s profi tability.

Interest Rate Risk

The Group’s cash balances are placed with reputable banks and fi nancial institutions. Financing is obtained through bank borrowings. Our Group’s policy is to obtain the most favourable rates available.

Liquidity Risk

The objective of liquidity management is to ensure that our Group has suffi cient funds to meet its contractual and fi nancial obligations. Management is of the view that there is no liquidity risk as our Group maintain adequate lines with fi nancial institutions and the cash fl ow from operations is suffi cient for present working capital requirements.

Foreign Currency Risk

Our revenue is denominated mainly in RMB while our purchases/expenses are mainly incurred in RMB. Our Group makes use of natural hedge in the above situation to minimise exposure to foreign currency movements.

However, our Company’s working capital is derived from dividend income from our subsidiaries. Hence, our Company would be exposed to foreign exchange risks when our Company receives dividends from our PRC subsidiaries.

Our Group currently does not have a formal hedging policy with respect to our foreign exchange exposure as we do not currently have a signifi cant foreign exchange currency exposure in our operations.

Credit Risk

Our Group performs ongoing credit evaluation of its customers’ fi nancial condition and generally does not require collateral. This evaluation includes assessing and valuation of customers’ credit reliability and periodic review of their fi nancial status to determine credit limits to be granted.

The maximum exposure to credit risk in the event that the customers fail to perform their obligations as at the end of the fi nancial year is the carrying amount stated in the balance sheet.

The Group’s trade receivables are mainly located in the PRC. There are no concentrations of credit risk with any customers or group of customers.

Risk Management


Corporate Governance Statement

Midas Holdings Limited (“the Company”) is committed to maintaining a high standard of corporate governance in complying with the benchmark set by the Code of Corporate Governance 2005 (“the Code”) issued by the Ministry of Finance on 14 July 2005.

The main corporate governance practices that were in place since are set out below.

A BOARD MATTERS

Board’s conduct of its affairs

The Board of Directors (“the Board”) supervises the management of the business and affairs of the Company and its subsidiaries (“the Group”). The Board approves the Group’s corporate and strategic direction, appointment of Directors and key managerial personnel, major funding and investment proposals, and reviews the fi nancial performance of the Group.

To assist in the execution of its responsibilities, the Board has established an Audit Committee (“AC”), a Remuneration Committee (“RC”) and a Nominating Committee (“NC”). Each of these committees has its own written terms of reference and whose actions are reported to and monitored by the Board. The Company has adopted internal guidelines setting forth matters that require Board approval.

The types of material transactions that require the Board’s approval under such guidelines included the following:

• Approval of quarterly results announcement; • Approval of the annual reports and accounts; • Declaration of interim dividends and proposal of fi nal dividends; • Convening of shareholders’ meetings; • Approval of broad policies, strategies and fi nancial objectives of the Group and

monitoring the performance of management; • Oversee the processes for evaluating the adequacy of internal controls, risk management,

fi nancial reporting and compliance; • Approval of nominations of Directors; • Approval of material acquisitions and disposals of assets; and • Authorisation of major transactions.

The Board comprises business leaders and professionals with fi nancial backgrounds. Profi les of our Directors are found on page 10 of this Report.

The Board conducts scheduled meetings on a regular basis. Ad hoc meetings will be convened to deliberate on urgent substantive matters when necessary. Telephonic attendance and conference via audio-visual communications at Board meetings are allowed under the Company’s Articles of Association. The attendance of the Directors at meetings of the Board and Board committees, as well as the frequency of such meetings, is disclosed in Part E of this Report.

The Directors are provided with important and relevant information of the Company and the Group. The Directors are also provided with the phone numbers and email addresses of the Company’s senior management and Company Secretary to facilitate access to information.

Newly appointed Directors are given an orientation on the Group’s business strategies and operations, including factory visits to ensure their familiarity with the Group’s operations and governance practices.

The Company Secretary and/or her representative attend(s) all Board meetings and, together

with the Directors, are responsible for ensuring that the Board procedures are followed and that applicable rules and regulations are complied with. The Company Secretary and/or her representative administer(s), attend(s) and prepare(s) minutes of all Board and Board committee meetings.

Directors are welcome to request further explanations, briefi ngs or informal discussions on any aspects of the Company’s operations or business issues from the management. The Chief Executive Offi cer (“CEO”) will make the necessary arrangements for the briefi ngs, informal discussions or explanations required by the Directors.


Board composition and balance

The Board comprises two Executive Directors and three Independent Directors. Key information regarding the Directors can be found under the Board of Directors’ Profi le section in this annual report.

Name of Director

Board Committee as Chairman or member

Directorship:Date of fi rst appointment/Date of last re-election

Board appointment:Executive or non-executive/Independent

Due for re-election at next AGM

Chen Wei Ping NA 21 August 2002/27 April 2005

Executive Retirement pursuant to Article 91


NA 17 November 2000/30 April 2007

Executive NA

Chew Chin Hua

Chairman of AC, Member of NC and RC

6 January 2004/28 April 2006

Independent Retirement pursuant to Article 91

Gay Chee Cheong

Chairman of NC, Member of AC and RC

23 June 2004/ 30 April 2007

Independent NA

Chan Soo Sen Chairman of RC, Member of AC and NC

29 June 2006 / 30 April 2007

Independent NA

The independence of each Independent Director is reviewed annually by the NC. The NC adopts the Code’s defi nition of what constitutes an Independent Director in its review, and the Company requires the Independent Directors to declare their independence annually. As a result of the review of the independence of each Director for the year, the NC is satisfi ed with the independence of all the Independent Directors.

Role of Chairman and CEO

The roles for both Chairman and CEO in the Company are separately assumed by Mr. Chen Wei Ping and Mr. Chew Hwa Kwang, Patrick. As such, there is a clear division of responsibilities at the top of the Group. Mr. Chen bears responsibility for the workings of the Board and ensures that the procedures are introduced to comply with the Code while Mr. Chew bears executive responsibility for the Group’s business.

Nominating Committee (“NC”)

The NC comprises 3 Independent Directors:

• Mr. Gay Chee Cheong, Chairman of the NC and Independent Director • Mr. Chew Chin Hua, Independent Director • Mr. Chan Soo Sen, Independent Director

The principal functions of the NC are to:

• Identify suitable candidates and review all nominations for the appointment to the Board of Directors before making recommendations to the Board for appointment.

• Assess the independence of the Directors annually and is of the opinion that the Directors who have been classifi ed as independent under the “Board of Directors” section are indeed independent.

• Decide whether or not a Director is able to and has been adequately carrying out his duties as a Director of the Company particularly where the Director has multiple board representations.

• Access the effectiveness of the Board. • To recommend Directors who are retiring by rotation to be put forward for re-election,

having regard to their contribution and performance.

The NC is of the view that the current Board comprises persons who as a group, provide core competencies necessary to meet the Company’s targets and that the current board size is adequate, taking into account the nature and scope of the Company’s operations.

Key information on the individual Directors of the Company is set out on page 10 of this Annual Report. Their shareholdings are also disclosed on page 22 in the Directors’ report. None of the Directors hold shares in the subsidiaries of the Company.

Board Performance

The NC will use its best efforts to ensure that Directors appointed to the Board possess the relevant background, experience and knowledge to enable balanced and well-considered decisions to be made. The performance criteria the NC will consider in relation to an individual Director include the Director’s industry knowledge and/or functional expertise, contribution and workload requirements, sense of independence and attendance at the Board and committee meetings. One of the NC’s responsibilities is to undertake a review of the Board’s performance. The NC will consider practicable methods to assess the effectiveness of the Board.



B REMUNERATION MATTERS

Remuneration Committee (“RC”)

The RC comprises 3 Independent Directors:

1 Mr. Chan Soo Sen, Chairman of the RC and Independent Director 2. Mr. Gay Chee Cheong, Independent Director 3. Mr. Chew Chin Hua, Independent Director

The principal functions of the RC are to:

• Review and advise the Board on the remuneration packages of senior management employees of the Group.

• Review and approve annually the remuneration for the Directors. • Determine targets for any performance related pay schemes operated by the Company. • Administer the Midas Employees Share Option Scheme (“the Scheme”).

The members of the RC do not have specialized knowledge in the fi eld of executive compensation. However, they have gained experiences in this area via managing the business and/or the human resources matters of the Group and companies outside the Group. The Company will ensure that the RC has access to expert advice on the human resource matter whenever there is a need to consult externally. In setting remuneration packages, the Group takes into account pay and employment conditions within the same industry and in comparable companies, as well as the Group’s performance and individual performance. No Director or executive will be involved in deciding his own remuneration.

The remuneration packages for our Executive Chairman and CEO include a basic salary component, a profi t sharing component as well as share option elements, which are performance related. Both our Executive Chairman and CEO have entered into service agreements with the Group with effect from 1 January 2006 for a period of three years.

Independent Directors do not have service contracts with the Company. Independent Directors will receive directors’ fees, in accordance with their contributions, taking into factors such as effort and time spent, responsibilities of the Directors and the need to pay competitive fees to attract, retain and motivate the Directors. Director’s fees have been recommended by the Board for approval at the Company’s Annual General Meeting (“AGM”).

Disclosure on Remuneration

A breakdown of each individual Director’s remuneration, in percentage terms showing the level and mix for the year ended 31 December 2007, is as follows:

Fees%

Salary%

Other Benefi ts%

Total%

S$250,000 to S$499,999:Chen Wei Ping - 77 23 100

Chew Hwa Kwang, Patrick - 76 24 100

Below S$250,000:Chew Chin Hua 100 - - 100

Gay Chee Cheong 100 - - 100

Chan Soo Sen 100 - - 100

The remuneration of the top 5 key executives (who are not Directors) is not disclosed in this report. The Company believes that disclosure of the remuneration of individual executives is disadvantageous to its business interests, in view of the shortage of talented and experienced personnel in the industry.

There are no persons occupying managerial positions in the Company who are related to a Director or substantial shareholder of the Company or any of its principal subsidiaries who earned more than S$150,000 per annum for the fi nancial year ended 31 December 2007.

C ACCOUNTABILITY AND AUDIT

Audit Committee (“AC”)

The AC comprises 3 Independent Directors:

• Mr. Chew Chin Hua, Chairman of the AC and Independent Director • Mr. Gay Chee Cheong, Independent Director • Mr. Chan Soo Sen, Independent Director



The chairman of the AC, Mr. Chew Chin Hua, has many years of experience in the auditing and accounting profession. Mr. Chan Soo Sen and Mr. Gay Chee Cheong have many years of experience in business and fi nancial management. The AC members bring with them extensive managerial and fi nancial expertise. All of them are also board members of various listed companies in Singapore. The AC meets at least 4 times a year, with further meetings if circumstances require. The Board is of the view that the members of the AC have suffi cient fi nancial management expertise and experience to discharge the AC’s functions.

The AC assists the Board to maintain a high standard of corporate governance, particularly in

the areas of effective fi nancial reporting and the adequacy of internal control systems of the Group.

During the year, the AC reviewed and approved the audit plans submitted by both the internal and external auditors. The AC reviewed the fi ndings and recommendations from the auditors. The AC also reviewed and discussed the announcements of the quarterly, half year and full year results.

The AC evaluates the assistance given by management to the external auditors and also reviews any interested person transactions.

The AC has full access to management and is given the resources required for it to discharge its functions. It has the full authority and discretion to invite any Director or executive offi cer to attend its meetings.

The AC meets with the external auditors, without the presence of management, at least once a year.

The AC, having reviewed all non-audit services provided by the external auditors to the Group, is satisfi ed that the nature and extent of such services would not affect the independence of the external auditors. The AC recommends BDO Raffl es to the Board of Directors for re-appointment as external auditors of the Company.

Internal Control

The Board believes that, in the absence of any evidence to the contrary, the system of internal control maintained by the Group throughout the fi nancial year and up to the date of this report, provides reasonable, but not absolute, assurance against material fi nancial misstatements or loss, and include the safeguarding of assets, the maintenance of proper accounting records, the reliability of fi nancial information, compliance with appropriate legislation, regulation and best practice, and the identifi cation and containment of business risk. The Board notes that no system of internal control could provide absolute assurance against the occurrence of material errors, poor judgement in decision-making, human error, losses, fraud or other irregularities.

Internal Audit

The internal audit function is outsourced to a fi rm of certifi ed public accountants. The internal auditors report directly to the Chairman of the AC. The AC reviews and approves the annual internal audit plans and reviews the scope of internal audit procedures. The internal auditors report to the AC directly their signifi cant fi ndings and recommendations arising from the internal audit carried out.

D COMMUNICATIONS WITH SHAREHOLDERS

The Group is mindful of the obligation to provide regular, effective and fair communication with shareholders on a timely basis. The Group does not practice selective disclosure. The Company holds analysts briefi ng after announcing its half-year and full-year results. The announcements of results are published through the SGXNET and news releases. All information on the Company’s and/or the Group’s new initiatives are fi rst disseminated via SGXNET followed by a news release. Results and annual reports are announced or issued within the mandatory period.

All shareholders of the Company receive the annual report, circulars and notices of the shareholders’ meetings. The notices are also advertised in newspapers. The Company encouraged shareholders to attend the AGM to ensure a high level of accountability and to stay informed of the Company’s and/or the Group’s strategies and goals. The notice of this AGM has been dispatched to the shareholders, at least 14 working days before the meeting. The Board welcomes questions from shareholders either formally or informally before or at the AGM.

The Company’s Articles of Association allow a shareholder of the Company to appoint one or two proxies to attend and vote instead of the shareholder.



E OTHERS

Director’s Attendance at Board & Committee Meetings

The number of Board and Committee meetings held in the fi nancial year ended 31 December 2007 and the attendance at those meetings were as follows:

Board Audit Committee

Nominating Committee

Remuneration Committee

Total no. of meetings held

= 5


= 4


= 1


= 2No. of meetings

attendedNo. of meetings



attendedChen Wei Ping 5/5 NA NA NA


5/5 NA NA NA

Chew Chin Hua 5/5 4/4 1/1 2/2

Gay Chee Cheong 5/5 4/4 1/1 2/2

Chan Soo Sen 3/5 3/4 NA NA

Securities Trading

The Group has adopted the best practices stipulated in Listing Rule 1207(18) of the SGX-ST Listing Manual with respect to the dealings in securities for the guidance of Directors and offi cers. In line with the guidelines, Directors and executive offi cers of the Group are not permitted to deal in the Company’s shares during the period commencing two weeks before the announcement of the Group’s fi nancial statements for each of the fi rst three quarters of its fi nancial year, or one month before the announcement of the Group’s annual results and ending on the date of the announcement of the relevant results, or when they are in possession of any unpublished price sensitive information on the Group.

Interested Person Transactions Policy

The Group has adopted an internal policy in respect of any transactions with interested persons and has set out the procedures for periodic review and approval of these transactions by the AC.

Name of Interested Person

Aggregate value of all interested person transactions during the fi nancial year under review (excluding transactions less than $100,000/- and transactions conducted under shareholders’ mandate pursuant to Rule 920)

Aggregate value of all interested person transactions conducted under shareholders’ mandate pursuant to Rule 920 (excluding transactions less than $100,000/-) Nature of transaction

Chen Wei Ping S$6.2 million - Repayment of unsecured interest free loan

Risk Management

The Group regularly reviews and improves its business and operational activities to take into account the risk management perspective. The Group seeks to identify areas of signifi cant business risks as well as appropriate measures to control and mitigate these risks. The Group reviews all signifi cant control policies and procedures and highlights all signifi cant matters to the AC.

Whistle-Blowing Program

As a further enhancement to internal risk control processes, the Company introduced and implemented the “Policy on Reporting Wrongdoing” across the Group. Under this “Whistleblowing” policy, all forms of “wrong-doings” can be reported to an investigation unit, with the “whistle-blower” being provided confi dentiality protection. “Wrong-doings” can include fraud, theft, abuse of authority, breach of regulations or non-compliance with corporate policy such as improper banking or fi nancial transactions.

Material Contracts

Save as disclosed, there are no other material contracts entered into by the Company and its subsidiaries involving the interest of the CEO, Director or controlling shareholder, which are either subsisting at the end of the fi nancial year or, if not then subsisting, entered into since the end of the previous fi nancial year.



Directors’ Report

The Directors are pleased to present their report to the members together with the audited consolidated fi nancial statements of the Group and the balance sheet and statement of changes in equity of the Company for the fi nancial year ended 31 December 2007.

1. Directors

The Directors of the Company in offi ce at the date of this report are:

Mr. Chen Wei Ping Mr. Chew Hwa Kwang, Patrick Mr. Chew Chin Hua Mr. Gay Chee Cheong Mr. Chan Soo Sen

2. Arrangements to enable Directors to acquire shares and debentures

Neither at the end of nor at any time during the fi nancial year was the Company a party to any arrangement whose object is to enable the Directors of the Company to acquire benefi ts by means of the acquisition of shares in or debentures of the Company or any other body corporate, other than as disclosed under “Share Options” of this report.

3. Directors’ interests in shares or debentures

According to the register of Directors’ shareholding kept by the Company for the purpose of Section 164 of the Singapore Companies Act, Chapter 50 (“Act”), the Directors who were holding offi ce at the end of fi nancial year had interest in the shares or debentures of the Company and its related corporations as detailed below:-

Direct interest Deemed interest

Name of Director

At beginning of the

fi nancial year

At end of the fi nancial

year

At beginning of the

fi nancialyear

At end of the

fi nancial year

The Company

Mr. Chen Wei Ping 204,905,200 204,905,200 - -Mr. Chew Hwa Kwang, Patrick 118,211,800 118,711,800 - -

Mr. Chew Chin Hua 600,000 1,000,000 400,000 600,000Mr. Gay Chee Cheong 33,400,000 33,800,000 - -

3. Directors’ interests in shares or debentures

By virtue of Section 7 of the Singapore Companies Act, Mr. Chen Wei Ping is deemed to be interested in the shares of all the subsidiaries held by the Company as at the beginning and end of the fi nancial year.

In accordance with the requirements of the Listing Manual of the Singapore Exchange

Securities Trading Limited (”SGX-ST”), the Directors of the Company state that, according to the register of Directors’ shareholdings, there was no other change in the Directors’ interests as at 21 January 2008 in shares of the Company and its related corporations from those disclosed as at 31 December 2007.

According to the register of Directors’ shareholdings, certain Directors holding offi ce at the end of the fi nancial year had interests in options to subscribe for ordinary shares of the Company granted pursuant to the Midas Employee Share Option Scheme as set out below:-

Name of Director

Exercise price per

share Exercise period

At beginning of the

fi nancialyear

At end of the

fi nancial year

Options to subscribe for ordinary shares

Mr. Chen Wei Ping $0.873 11.5.2007 to 10.5.2012 1,500,000 1,500,000

Mr. Chew Hwa Kwang, Patrick $0.873 11.5.2007 to 10.5.2012 1,500,000 1,500,000

Mr. Gay Chee Cheong $0.873 11.5.2007 to 10.5.2012 400,000 -

Mr. Chew Chin Hua $0.873 11.5.2007 to 10.5.2012 400,000 -

Mr. Gay Chee Cheong $1.992 14.5.2008 to 13.5.2013 - 300,000

Mr. Chew Chin Hua $1.992 14.5.2008 to 13.5.2013 - 300,000

Mr. Chan Soo Sen $1.992 14.5.2008 to 13.5.2013 - 300,000

4. Corporate governance

The Board of Directors (the “Board”) is committed to ensuring that the highest standards of corporate governance are practiced throughout Midas Holdings Limited (the “Company”) and its subsidiaries (the “Group”), as a fundamental part of its responsibilities to protect and enhance shareholder value and the fi nancial performance of the Group.


Directors’ Report

5. Directors’ contractual benefi ts

Since the beginning of the fi nancial year, no Director of the Company has received or become entitled to receive a benefi t by reason of a contract made by the Company or a related corporation with the Director or with a fi rm of which he is a member or with a company in which he has a substantial fi nancial interest, except as disclosed in the accompanying fi nancial statements.

6. Share options

Midas Employee Share Option Scheme

The Midas Employee Share Option Scheme (“the Scheme”) was approved by the shareholders of the Company at an Extraordinary General Meeting held on 6 January 2004. The Scheme is administered by the Company’s Remuneration Committee, comprising Mr. Chew Chin Hua, Mr. Gay Chee Cheong and Mr. Chan Soo Sen.

Under the Scheme, an option entitles the option holder to subscribe for a specifi c number of new ordinary shares in the Company comprised in the option at a subscription price per share determined with reference to the market price of the share at the time of grant of the option. The Remuneration Committee may at its discretion, fi x the subscription price at a maximum discount of 20% off the market price. Options granted with the subscription price set at the market price shall only be exercised after the fi rst anniversary from the date of the grant of the option. Options granted with the market price set at a discount to the market price shall only be exercised after the second anniversary from the date of the grant of the option. The shares under option may be exercised in whole or in part thereof. Options granted will lapse when the option holder ceases to be a full-time employee of the Company or any Company of the Group subject to certain exceptions at the discretion of the Company.

The number of shares available under the Scheme shall not exceed 15% of the issued share capital of the Company.

The Scheme became operative with options to subscribe for 2,500,000 ordinary shares of the Company being granted on 18 May 2005 (“2005 Options”). Particulars of the 2005 Options were set out in the Directors’ Report for the fi nancial year ended 31 December 2005.

On 11 May 2006, options to subscribe for 4,950,000 ordinary shares of the Company at an exercise price of $0.873 per share were granted (“2006 Options”). The 2006 Options are exercisable from 11 May 2007 and expire on 10 May 2012.

On 14 May 2007, options to subscribe for 4,600,000 ordinary shares of the Company at an exercise price of $1.992 per share were granted (“2007 Options”). The 2007 Options are exercisable from 14 May 2008 and expire on 13 May 2013.

6. Share options

The details of options granted and exercised during the fi nancial year were as follows:-

Option participants

Granted in fi nancial

year ended 31.12.2007

Aggregate granted since

commencement of scheme to

31.12.2007

Aggregate exercised since

commencement of scheme to

31.12.2007

Aggregate outstanding

as at 31.12.2007

Directors of the Company

- Mr. Chen Wei Ping - 1,500,000 - 1,500,000- Mr. Chew Hwa Kwang, Patrick - 1,500,000 - 1,500,000- Mr. Gay Chee Cheong 300,000 700,000 400,000 300,000- Mr. Chew Chin Hua 300,000 700,000 400,000 300,000- Mr. Chan Soo Sen 300,000 300,000 - 300,000

Other executives 3,700,000 7,350,000 3,050,000 4,300,000

During the fi nancial year, there was no share options granted to controlling shareholders of the Company at the fi nancial year pursuant to the Midas Employee Share Option Scheme.

No other key management or employee has received options on 5% or more of the total number of shares available under the scheme during the fi nancial year. No other Director or employee of the Company and its subsidiaries (as defi ned in the Singapore Exchange Securities Trading Listing Manual) has received options on 5% or more of the total number of shares available to all Directors and employees of the Company and its subsidiaries under the Scheme during the fi nancial year.

During the fi nancial year, the Company issued a total of 1,900,000 ordinary shares and 1,350,000 ordinary shares at exercise price of $0.28 and $0.873 each respectively, pursuant to the Midas Employee Share Option Scheme to take up unissued shares of the Company or its subsidiaries.

According to the register of Directors’ shareholdings, there were 900,000 share options granted to Directors of the Company at the end of the fi nancial year pursuant to the Midas Employee Share Option Scheme.

The number of unissued ordinary shares of the Company under options outstanding at the end of the fi nancial year is as follows:

Option relating to Midas Employee Share Option Scheme

Number outstanding at

31.12.2007 Exercise price Exercise period

2006 Options 3,600,000 $0.873 11.5.2007 to 10.5.20122007 Options 4,600,000 $1.992 14.5.2008 to 13.5.2013


Directors’ Report

7. Audit committee

The members of the Audit Committee during the fi nancial year and the date of this report are:

Mr. Chew Chin Hua (Chairman) - Independent Director

Mr. Gay Chee Cheong - Independent Director

Mr. Chan Soo Sen - Independent Director

The Audit Committee performs the functions specifi ed in Section 201B of the Singapore Companies Act.

The Audit Committee has held four meetings since the last Directors’ report. In performing its functions, the Audit Committee met with the Company’s external and internal auditors to discuss the scope of their work, the results of their examination and evaluation of the Company’s internal accounting control system.

The Audit Committee also reviewed the following:

• the Group’s fi nancial and operating results and accounting policies;

• the quarterly, half-yearly and annual results announcements as well as the related press releases on the results and fi nancial position of the Company and the Group;

• the co-operation and assistance given by the management to the Group’s internal and external auditors;

The Audit Committee has recommended to the Board that the auditors, BDO Raffl es, be nominated for re-appointment at the forthcoming Annual General Meeting of the Company.

8. Auditors

The auditors, BDO Raffl es, have expressed their willingness to accept re-appointment.

On behalf of the Board of Directors

MR. CHEN WEI PING MR. CHEW HWA KWANG, PATRICKDirector Director

Singapore

20 March 2008


Statement by the Directors

In our opinion:

(a) the accompanying consolidated fi nancial statements of the Group and the balance sheet and statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Act, Cap. 50 and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Company as at 31 December 2007 and of the results, changes in equity and cash fl ow of the Group and the changes in equity of the Company for the fi nancial year ended on that date; and

(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.

On behalf of the Board of Directors

MR. CHEN WEI PING MR. CHEW HWA KWANG, PATRICKDirector Director

Singapore

20 March 2008


Opinion

In our opinion,

(a) the consolidated fi nancial statements of the Group and the balance sheet and statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Company and of the Group as at 31 December 2007 and of the results, changes in equity and cash fl ows of the Group and the changes in equity of the Company for the fi nancial year ended on that date.

(b) the accounting and other records required by the Act to be kept by the Company and those subsidiary companies incorporated in Singapore of which we are the auditors, have been properly kept in accordance with the provisions of the Act.

BDO Raffl es Public Accountants andCertifi ed Public Accountants Singapore

20 March 2008

We have audited the accompanying consolidated fi nancial statements of Midas Holdings Limited (“the Company”) and its subsidiaries (collectively the “Group”), which comprise the balance sheets of the Group and of the Company as at 31 December 2007, profi t and loss account, statement of changes in equity and statement of cash fl ow of the Group and the statement of changes in equity of the Company for the fi nancial year then ended, and a summary of signifi cant accounting policies and other explanatory notes as set out on pages 32 to 57.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these fi nancial statements in accordance with the provisions of the Singapore Companies Act, Cap. 50 (the “Act”) and Singapore Financial Reporting Standards. This responsibility includes:

(a) devising and maintaining a system of internal accounting controls suffi cient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair profi t and loss account and balance sheets and to maintain accountability of assets;

(b) selecting and applying appropriate accounting policies; and

(c) making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Independent Auditors’ Reportto the Members of Midas Holdings Limited


Balance SheetsAs at 31 December 2007

Consolidated Profi t And Loss Account for the Financial Year ended 31 December 2007

The Group The Company

2007 2006 2007 2006Note $’000 $’000 $’000 $’000

Non-current assetsProperty, plant and equipment 3 70,467 64,559 4 1Subsidiaries 4 - - 108,199 108,692Associate 5 30,989 29,729 29,733 29,729Land use rights 6 2,902 1,894 - -Prepaid rental 7 28 29 - -Pledged bank deposits 8 5,005 5,366 - -

109,391 101,577 137,936 138,422

Current assetsInventories 9 19,590 9,804 - -Trade and other receivables 10 40,024 43,493 354 328Cash and cash equivalents 11 51,666 49,944 71 4,200

111,280 103,241 425 4,528Less :Current liabilitiesTrade and other payables 12 15,341 14,611 71 82Bank borrowings – secured 13 18,373 13,772 - -Due to a Director 14 - 6,203 - 6,203Dividends payable 26 4,226 4,209 4,226 4,209Income tax payable 1,157 183 - 135

39,097 38,978 4,297 10,629

Net current assets/(liabilities) 72,183 64,263 (3,872) (6,101)

Non-current liabilityBank borrowings – secured 13 - (2,946) - -

Net assets 181,574 162,894 134,064 132,321

Capital and reservesShare capital 15 131,014 128,878 131,014 128,878Foreign currency translation reserve 16 (6,365) (6,692) - -General reserve 17 11,013 7,366 - -Share option reserve 18 1,996 799 1,996 799Accumulated profi ts 43,916 32,543 1,054 2,644

181,574 162,894 134,064 132,321

2007 2006

Note $’000 $’000

Revenue 19 140,399 104,764

Cost of sales (95,265) (70,523)

Gross profi t 45,134 34,241

Other operating income 20 2,529 2,777

Selling and distribution expenses (3,213) (2,069)

Administrative expenses (8,414) (6,469)

Finance cost 21 (1,973) (757)

Share of profi ts of an associated company 5 1,256 -

Profi t before income tax 22 35,319 27,723

Income tax 24 (3,405) (2,156)

Profi t attributable to equity holders 31,914 25,567

Earnings per share 25

Basic (cents) 3.78 3.18

Diluted (cents) 3.73 3.18

The accompanying notes form an integral part of these fi nancial statementsThe accompanying notes form an integral part of these fi nancial statements


NoteShare

capital

Foreign currency

translation reserve

Generalreserve

Share optionreserve

Accumulatedprofi ts Total

$’000 $’000 $’000 $’000 $’000 $’000The Group

Balance at 1 January 2007 128,878 (6,692) 7,366 799 32,543 162,894Issue of shares 15- Option shares 1,710 - - - - 1,710Transfer of option reserve to share capital upon exercise of ESOS 18 426 - - (426) - -

Translation adjustment - 327 - - - 327

Net gains recognised directly in equity - 327 - - - 327Profi t attributable to equity holders - - - - 31,914 31,914

Total recognised gains for the fi nancial year - 327 - - 31,914 32,241Transfer to general reserve 17 - - 3,647 - (3,647) -Share based payment expense 18 - - - 1,623 - 1,623Dividends paid 26 - - - - (16,894) (16,894)

Balance at 31 December 2007 131,014 (6,365) 11,013 1,996 43,916 181,574

Statement of Changes in Equity for the Financial Year ended 31 December 2007

The accompanying notes form an integral part of these fi nancial statements




NoteShare

capitalShare

premium

Foreigncurrency

translation reserve

Generalreserve

Share optionreserve

Accumulatedprofi ts Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000The Group

Balance at 1 January 2006 30,593 36,537 (43) 4,883 118 19,789 91,877Issue of shares 15- Private placement 62,730 - - - - - 62,730- Option shares 168 - - - - - 168Share issue expenses 15- Private placement (1,192) - - - - - (1,192)Transfer of option reserve to share capital upon exercise of ESOS 18 42 - - - (42) - -Transfer from share premium* 15 36,537 (36,537) - - - - -

Translation adjustment - - (6,649) - - - (6,649)

Net gains recognised directly in equity - - (6,649) - - - (6,649)Profi t attributable to equity holders - - - - - 25,567 25,567Total recognised gains for the fi nancial year - - (6,649) - - 25,567 18,918Transfer to general reserve 17 - - - 2,483 - (2,483) -Share based payment expense 18 - - - - 723 - 723Dividends paid 26 - - - - - (10,330) (10,330)

Balance at 31 December 2006 128,878 - (6,692) 7,366 799 32,543 162,894

* Under the Companies (Amendment) Act 2005 effective 30 January 2006, the concepts of ‘par value’ and ‘authorised capital’ are abolished and the amount in the share premium account as at 30 January 2006 became part of the Company’s share capital.


Note Share capitalShare option

reserveAccumulated

profi ts Total

$’000 $’000 $’000 $’000The Company

Balance at 1 January 2007 128,878 799 2,644 132,321

Issue of shares 15- Option shares 1,710 - - 1,710Transfer of option reserve to share capital upon exercise of ESOS 18 426 (426) - -Share based payment expense 18 - 1,623 - 1,623Profi t attributable to equity holders - - 15,304 15,304Dividends paid 26 - - (16,894) (16,894)

Balance at 31 December 2007 131,014 1,996 1,054 134,064

Note Share capital Share premiumShare option

reserveAccumulated

profi ts Total

$’000 $’000 $’000 $’000 $’000The Company

Balance at 1 January 2006 30,593 36,537 118 5,082 72,330

Issue of shares 15- Private placement 62,730 - - - 62,730- Option shares 168 - - - 168Share issue expenses 15- Private placement (1,192) - - - (1,192)Transfer of option reserve to share capital upon exercise of ESOS 18 42 - (42) - -Transfer from share premium* 15 36,537 (36,537) - - -Share based payment expense 18 - - 723 - 723Profi t attributable to equity holders - - - 7,892 7,892Dividends paid 26 - - - (10,330) (10,330)

Balance at 31 December 2006 128,878 - 799 2,644 132,321

* Under the Companies (Amendment) Act 2005 effective 30 January 2006, the concepts of ‘par value’ and ‘authorised capital’ are abolished and the amount in the share premium account as at 30 January 2006 became part of the Company’s share capital.




Consolidated Statement of Cash Flow for the Financial Year ended 31 December 2007


2007 2006Note $’000 $’000

Cash fl ows from operating activities

Profi t before income tax 35,319 27,723

Adjustments for:

Depreciation of property, plant and equipment 6,207 4,367

Allowance for doubtful trade receivables 5 41

Write-back of allowance for doubtful trade receivables (2) -

Amortisation of prepaid rental and land use rights 45 45

Property, plant and equipment written off 9 250

Share based payment expense 1,623 723

Share of profi ts of an associated company (1,256) -

Interest expense 1,865 757

Interest income (177) (995)

Loss on disposal of property, plant and equipment 98 154

Operating profi ts before changes in working capital 43,736 33,065

Changes in working capital :

Inventories (9,786) (2,283)

Trade and other receivables 3,466 (6,596)

Trade and other payables 730 7,523

Cash generated from operations 38,146 31,709

Interest paid (1,865) (757)

Interest received 177 995

Income tax paid (2,431) (4,182)

Net cash from operating activities 34,027 27,765

Cash fl ows used in investing activities

Proceeds from disposal of property, plant and equipment 45 24

Purchase of property, plant and equipment (12,723) (31,668)

Investment in an associate (4) (29,729)

Decrease in pledged bank deposits 361 773

Increase in land use rights (318) -

Net cash used in investing activities (12,639) (60,600)

2007 2006

Note $’000 $’000

Cash fl ows (used in)/from fi nancing activities

Net proceeds from issuance of share capital 1,710 61,748

Dividends paid (12,668) (6,121)

Decrease in amount due to a Director (6,203) (1,076)

Net increase in bank borrowings 1,655 10,477

Net repayment of liabilities under fi nance lease - (29)

Net cash (used in)/from fi nancing activities (15,506) 64,999Net effect of exchange rate changes in consolidating subsidiaries (4,160) (6,157)

Net increase in cash and cash equivalents 1,722 26,007Cash and cash equivalents at beginning of the fi nancial year 49,944 23,937

Cash and cash equivalents at end of the fi nancial year 11 51,666 49,944


These notes form an integral part of and should be read in conjunction with the accompanying fi nancial statements.

1. General corporate information The Company is a public limited liability company incorporated and domiciled in the Republic

of Singapore with its registered offi ce and principal place of business at No. 2 Shenton Way, #04-01 SGX Centre 1, Singapore 068804 and is publicly traded on the Singapore Exchange Securities Trading Limited.

The principal activity of the Company is that of investment holding. The principal activities of the subsidiaries are set out in Note 4 to the fi nancial statements.

2. Summary of signifi cant accounting policies

(a) Basis of preparation of fi nancial statements The fi nancial statements have been prepared in accordance with the provision of the

Singapore Companies Act, Chapter 50 (the “Act”) and Singapore Financial Reporting Standards (“FRS”). The fi nancial statements are prepared under the historical cost convention except for certain fi nancial assets and liabilities which are measured at fair value.

The preparation of fi nancial statements in conformity with FRS requires management to exercise its judgment in the process of applying the Group’s accounting policies. It also requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the fi nancial statements, and the reported amounts of revenues and expenses during the fi nancial year. Although these estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates.

In the current fi nancial year, the Group has adopted all the new and revised FRSs and Interpretations of FRS (INT FRS) that are relevant to its operations and effective for annual periods beginning on or after 1 January 2007. The adoption of these new or revised FRSs and INT FRSs does not result in changes to the Group’s and Company’s accounting policies and has no material effect on the amounts reported for the current or prior periods except as disclosed below.

In the current fi nancial year, the Group has adopted FRS 107 Financial Instruments: Disclosures which is effective for annual reporting periods beginning on or after 1 January 2007, and the consequential amendments to FRS 1 Presentation of Financial Statements.

The impact of the adoption of FRS 107 and the changes to FRS 1 has been to expand the disclosures provided in these fi nancial statements regarding the Group’s fi nancial risk management and management of capital (see note 30).

Notes To The Financial Statements for the Financial Year ended 31 December 2007


(a) Basis of preparation of fi nancial statements

At the date of authorisation of these fi nancial statements, the following FRS and Interpretations were in issue but not yet effective, which maybe relevant to the Group:

· INT FRS 111 FRS 102: Group and Treasury Share Transactions (effective 1 March 2007);

· INT FRS 112 Service Concession Arrangements (effective 1 January 2008);

· FRS 23 (Revised) Borrowing Costs (effective for accounting periods beginning on or after 1 January 2009); and

· FRS 108 Operating Segments (effective for accounting periods beginning on or after 1 January 2009).

The Directors anticipate that all of the above FRS and Interpretations, where applicable, will be adopted in the Group’s fi nancial statements for the fi nancial period commencing 1 January 2008 and that the adoption of those Interpretations will have no material impact on the fi nancial statements of the Group in the period of initial application except for the adoption of FRS 108 as follows:-

FRS 108 is a disclosure standard which will result in a redesignation of the Group’s reportable segments but has had no impact on the future reportable results or fi nancial position of the Group.

(b) Subsidiaries

Subsidiaries are entities (including special purpose entities) over which the Group has power to govern the fi nancial and operating policies, generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.

In the Company’s separate fi nancial statements, investments in subsidiaries are accounted for at cost less impairment losses.




(c) Consolidation

The purchase method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifi able assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values on the date of acquisition, irrespective of the extent of any minority interest.

Subsidiaries are consolidated from the date on which control is transferred to the Group to the date on which that control ceases. In preparing the consolidated fi nancial statements, inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments are made to the fi nancial statements of subsidiaries to ensure consistency of accounting policies with those of the Group.

(d) Associates An associate is an entity over which the Group has signifi cant infl uence and that is

neither a subsidiary nor an interest in joint venture. Signifi cant infl uence is the power to participate in the fi nancial and operating policy decisions of the investee but is not control or joint control over those policies.

The results and assets and liabilities of associates are incorporated in these fi nancial statements using the equity method of accounting, except when the investment is classifi ed as held for sale, in which case it is accounted for under FRS 105 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, investments in associates are carried in the balance sheet at cost as adjusted for post-acquisitions changes in the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate) are not recognised.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifi able assets, liabilities and contingent liabilities of the associate recognised at the date of acquisition is recognised as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of the investment. Any excess of the Group’s share of the net fair value of the identifi able assets, liabilities and contingent liabilities over the cost of acquisition, after assessment, is recognised immediately in the profi t and loss account.

Where a Group entity transacts with an associate of the Group, profi t and losses are eliminated to the extent of the Group’s interest in the relevant associate.


(e) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment in value, if any.

The cost of property, plant and equipment comprises its purchase price and any direct

attributable cost of bringing the property, plant and equipment to working condition for its intended use. Expenditure for additions, improvements and renewals are capitalised and expenditure for maintenance and repairs are charged to the profi t and loss account. Upon disposal, the difference between the disposal proceeds and the carrying amount is charged or credited to the profi t and loss account.

Depreciation is charged so as to write off the cost of property, plant and equipment over their estimated useful lives, using the straight-line method on the following bases:

Annual depreciation rates

Buildings and improvements 3% to 5%Plant and equipment 5% to 20%Motor vehicles 10% to 20%Offi ce equipment 10%

No depreciation is charged on the construction-in-progress until the property, plant

and equipment is ready for use.

Fully depreciated property, plant and equipment are retained in the fi nancial statements until such time when they are no longer in use.

Property, plant and equipment held under fi nance lease arrangements are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the relevant leases.

The residual values, useful life and depreciation method are reviewed at each balance sheet date to ensure that the residual values, period of depreciation and depreciation method are consistent with previous estimates and expected pattern of consumption of the future economic benefi ts embodied in the items of property, plant and equipment.



(f) Land use rights

Land use rights are stated at cost less accumulated amortisation and any impairment losses. Amortisation is calculated on the straight-line basis to write off the cost of the land use rights over the lease terms.

(g) Impairment of tangible assets

The carrying amounts of the tangible assets are reviewed at each balance sheet date to determine whether there is any indication of impairment in value. If any such indication exists, the assets’ recoverable amount is estimated.

An impairment in value is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifi able asset group that generates cash fl ows that largely are independent from other assets and groups. Impairment in value is recognised in the profi t and loss account unless it reverses a previous revaluation, credited to equity, in which case it is charged to equity.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. Recoverable amount is determined for individual asset, unless the asset does not generate cash infl ows that are largely independent of those from other assets or groups of assets. The fair value less costs to sell is the amount obtainable from the sale of an asset or cash-generating unit in an arm’s length transaction between knowledgeable, willing parties, less costs of disposal. Value in use is the present value of estimated future cash fl ows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life, discounted at a pre-tax rate that refl ects current market assessments of the time value of the money and the risks specifi c to the asset or cash-generating unit for which the future cash fl ow estimates have not been adjusted.

An assessment is made at the balance sheet date as to whether there is any indication that an impairment in value recognised in prior periods for an asset may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. An impairment in value recognised in prior periods is reversed if there has been a change in the estimates used to determine the recoverable amount since that last impairment in value was recognised. An impairment in value is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment in value had been recognised. Reversals of impairment in value are recognised in the profi t and loss account unless the asset is carried at revalued amount, in which case the reversal in excess of impairment in value recognised in the profi t and loss account in prior periods is treated as a revaluation increase. After such a reversal, the deprecation or amortisation is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.



(h) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis. The cost of fi nished goods and work-in-progress comprise raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity) but exclude borrowing costs. The net realisable value is the estimated selling price in the ordinary course of business less the cost of completion and selling expenses.

(i) Financial assets

Classifi cation

Financial assets of the Group within the scope of FRS 39 comprise loans and receivables, which are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active market.

When fi nancial assets are recognised initially, they are measured at fair value. Management determines the classifi cation of its fi nancial assets at initial recognition and re-evaluates this designation at every reporting date. The designation of fi nancial assets at fair value through profi t and loss is irrevocable.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a fi nancial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the fi nancial instrument, or where appropriate, a shorter period. Income and expense is recognised on an effective interest basis for debt instruments other than those fi nancial instruments “at fair value through profi t or loss”.

Loans and receivables

Loans and receivables of the Group are carried at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate method, except for short-term receivables where the recognition of interest would be immaterial.



(i) Financial assets

Loans and receivables

(i) Trade and other receivables

Trade and other receivables are classifi ed and accounted for as loans and receivables under FRS 39.

For loans and receivables carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash fl ows, discounted at the original effective interest rate.

An allowance for impairment of trade and other receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables by setting up an allowance account. The amount of the allowance is recognised in the profi t and loss account.

Subsequent recoveries of amounts written off are credited to profi t and loss account. Changes in carrying amount of the allowance account are recognised in profi t and loss account.

(ii) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand, cash with banks and fi xed deposit with maturity term within one year. Cash and cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignifi cant risk of changes in value.

(j) Financial liabilities and equity instruments

The accounting policies adopted for specifi c fi nancial liabilities and equity instruments are set out below:-

(i) Trade and other payables

The above are carried at cost which represents the fair value of the consideration to be paid in the future for goods and services received and subsequently measured at amortised cost using the effective interest method.

Gains and losses are recognised in the profi t and loss account when the liabilities are derecognised as well as through the amortisation process.



(j) Financial liabilities and equity instruments

(ii) Interest-bearing loans and borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is taken to the profi t and loss account over the period of the borrowings using the effective interest method.

Gains or losses are recognised in the profi t and loss account when the liabilities are derecognised as well as through the amortisation process.

(iii) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

(k) Derecognition of fi nancial assets and liabilities

Financial assets

A fi nancial asset (or, where applicable a part of a fi nancial asset or part of a group of similar fi nancial assets) is derecognised where:

• The contractual rights to receive cash fl ows from the asset have expired;

• The Group retains the contractual rights to receive cash fl ows from the asset but has assumed an obligation to pay them in full without material delay to a third party under a pass through arrangement; or

• The Group has transferred its rights to receive cash fl ows from the asset and either (i) has transferred substantially all the risks and rewards of the asset or (ii) has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.



(k) Derecognition of fi nancial assets and liabilities

Financial assets

Where the Group has transferred its rights to receive cash fl ows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group’s continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

Where continuing involvement takes the form of a written and/or purchased option on the transferred asset, the extent of the Group’s continuing involvement is the amount of the transferred asset that the Group may repurchase except that in the case of a written put option on an asset measured at fair value, the extent of the Group’s continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.

Financial liabilities

A fi nancial liability is derecognised when the obligation under the liability is discharged or cancelled or expired.

Where an existing fi nancial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modifi ed such an exchange or modifi cation is treated as a derecognition of the original liability and the recognition of a new liability and the difference in the respective carrying amounts is recognised in the profi t and loss account.

(l) Provisions

Provision are recognised when the Group has a present obligations as a result of a past event and it is probable that the Group will be required to settle that obligations. Provision are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material.



(m) Leases

When the Group is the lessee: Operating lease

Leases of property, plant and equipment in which a signifi cant portion of the risks and rewards of ownership are retained by the lessor are classifi ed as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are taken to the profi t and loss account on a straight-line basis over the period of the lease.

When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place.

(n) Employee benefi ts

Defi ned contribution plan

Contributions to defi ned contribution plans are recognised as an expense in the profi t and loss account in the same fi nancial year as the employment that gives rise to the contributions.

Pursuant to the relevant regulations of the PRC government, the subsidiaries in the PRC have each participated in a local municipal government retirement benefi ts scheme (the “Scheme”), whereby the subsidiaries in the PRC are required to contribute a certain percentage of the basic salaries of its employees to the Scheme to fund their retirement benefi ts. The local municipal government undertakes to assume the retirement benefi ts obligations of all existing and future retired employees of the subsidiaries in the PRC. The only obligation of the Group with respect to the Scheme is to pay the ongoing required contributions under the Scheme mentioned above.

Contributions under the Scheme are charged to the profi t and loss account as incurred. There are no provisions under the Scheme whereby forfeited contributions may be used to reduce future contributions.

Employee leave entitlement

Employment entitlements to annual leave are recognised when they accrue to the employees. An accrual is made for estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date.




(n) Employee benefi ts

Share-based payment

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the profi t and loss account over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfi ed, a charge is made irrespective of whether the market vesting conditions are satisfi ed. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

Where the terms and conditions of options are modifi ed before they vest, the increase in the fair value of the options, measured immediately before and after the modifi cation, is also charged to the profi t and loss account over the remaining vesting period.

Where equity instruments are granted to persons other than employees, the profi t and loss account is charged with the fair value of goods and services received.

Fair value is measured using the Hull-White pricing model. Under this pricing model, the fair value take into account the impact of events, such as the early exercise of options by employees or employee exit rates after vesting, which occur during the term of the option. The exit rate is defi ned as the probability that an employee will leave the company during the vesting period. The Hull-White model also incorporates the employee’s early exercise strategy or possibility of the employee’s termination after the vesting period. It assumes that early exercise may occur when the stock price is a certain multiple of the exercise price. The exercise multiple is defi ned as the average ratio of the stock price to the exercise price at the time of exercise.

(o) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts and sales related taxes.

Sales of goods are recognised when goods are delivered and title has been passed.

Interest income is accrued on time basis, by reference to the principal outstanding and at the effective rate applicable.


(o) Revenue recognition

Commission income is recognised on the rendering of agency related services.

Dividend income from investments is recognised when the shareholders’ right to receive payment has been established.

(p) Income tax

Income tax for the fi nancial year comprises current and deferred taxes. Income tax is recognised in the profi t and loss account to the extent that it relates to items recognised directly in equity, in which case such income tax is recognised in equity.

Current tax is the expected tax payable on the taxable income for the fi nancial year, using tax rates enacted or substantially enacted by the balance sheet date, and any adjustment to income tax payable in respect of previous fi nancial year.

Deferred tax is provided using the liability method, providing for temporary differences at the balance sheet date between the carrying amounts and tax bases of assets and liabilities in the fi nancial statements. Deferred tax is measured using the tax rates expected to be applied to the temporary differences when they are realised or settled, based on tax rates enacted or substantially enacted by the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profi ts will available against which the temporary differences can be utilised. Deferred tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that the related tax benefi ts will be realised.

Unrecognised deferred tax assets are reassessed at each balance sheet date and are recognised to the extent that is has become probable that future taxable profi ts will be available against which the temporary differences can be utilised.

Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax assets against tax liabilities and the deferred taxes to the same tax authority and the Company intends to settle its current tax assets and liabilities on a net basis.

(q) Finance costs

Interest expense and similar charges are expensed in the profi t and loss account in the fi nancial year in which they are incurred, except to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to be prepared for its intended use or sale. The interest component of fi nance lease payments is recognised in the profi t and loss account using the effective interest rate.



(r) Dividends

Equity dividends are recognised when they become legally payable. Interim dividends are recorded in the fi nancial year in which they are declared payable. Final dividends are recorded in the fi nancial year in which the dividends are approved by the shareholders.

Dividends proposed or declared after the balance sheet date, are not recognised as a liability at the balance sheet date.

(s) Foreign currencies and currency translation

(i) Functional and presentation currency

The individual fi nancial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). The consolidated fi nancial statements of the Group and the balance sheet and statement of changes in equity of the Company are presented in Singapore dollar, which is the functional currency of the Company and the presentation currency for the consolidated fi nancial statements.

(ii) Transactions and balances

Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Currency translation gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the balance sheet date are recognised in the profi t and loss account, except for currency translation differences on the net investment in foreign operations, borrowings in foreign currencies and other currency instruments qualifying as net investment hedges for foreign operations, which are included in the foreign currency translation reserve within equity in the consolidated fi nancial statements.

Changes in the fair value of monetary securities denominated in foreign currencies classifi ed as available-for-sale are analysed into currency translation differences on the amortised cost of the securities, and other changes. Currency translation differences on the amortised cost are recognised in the profi t and loss account, and other changes are recognised in fair value reserve within equity.



(s) Foreign currencies and currency translation

(ii) Transactions and balances

Non-monetary items that are measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined. Currency translation differences on non-monetary items, whereby the gains or losses are recognised in the profi t and loss account, such as equity investments held at fair value through profi t or loss, are reported as part of the fair value gains or losses in “other gains/losses - net”. Currency translation differences on non-monetary items whereby the gains or losses are recognised directly in equity, such as equity investments classifi ed as available-for-sale fi nancial assets, investment properties and property, plant and equipment are included in the fair value reserve and asset revaluation reserve respectively.

(iii) Translation of Group entities’ fi nancial statements

The results and fi nancial position of all the group entities (none of which has the currency of a hyperinfl ationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

a. Assets and liabilities are translated at the closing rates at the date of the balance sheet;

b. Income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the dates of the transactions); and

c. All resulting exchange differences are taken to the foreign currency translation reserve within equity.

(iv) Consolidation adjustments

On consolidation, currency translation differences arising from the net investment in foreign operations, borrowings in foreign currencies, and other currency instruments designated as hedges of such investments, are taken to the foreign currency translation reserve. When a foreign operation is sold, such currency translation differences recorded in the foreign currency translation reserve are recognised in the profi t and loss account as part of the gain or loss on sale.




(t) Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a signifi cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fi nancial year are discussed below.

(i) Depreciation of property, plant and equipment

These assets are depreciated on a straight-line basis over their estimated useful lives. Management estimates the useful lives of these assets to be within 5 to 30 years. The carrying amounts of the Group’s property, plant and equipment as at 31 December 2007 were approximately $70,467,000 (2006: $64,559,000). Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.

(ii) Income taxes The Group has exposure to income taxes in PRC and Singapore. Due to its

inherent nature, judgement is involved in determining the Group’s provisions for income taxes.

The Group recognised liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the fi nal tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provision in the fi nancial year in which such determination is made. The carrying amount of the Group’s current income tax payables as at 31 December 2007 was approximately $1,157,000(2006: $183,000).

(u) Critical judgement made in applying accounting policies

Judgement made by management in the application of the Group’s accounting policies and in arriving at estimates with a signifi cant risk of material adjustment in the next fi nancial year is discussed below.


(u) Critical judgement made in applying accounting policies

Impairment of investments and fi nancial assets

The Group follows the guidance of FRS 39 on determining when an investment of fi nancial asset is other than temporarily impaired. This determination requires signifi cant judgement, the Group evaluates, among other factors, the duration and extent to which the fair value of an investment or fi nancial asset is less than its cost and the fi nancial health of and near-term business outlook for the investment or fi nancial asset, including factors such as industry and sector performance, changes in technology and operational and fi nancing cash fl ow.

(v) Segment reporting

A segment is a distinguishable component of the Group’s business that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.

Segment information is presented in respect of the Group’s business and segments. The primary format, business segments, is based on the Group’s management and internal reporting structure. Secondary segment information is not presented as the Group’s principal activities and assets are located in the People’s Republic of China.

Inter-segment pricing is determined on an arm’s length basis.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the fi nancial year to acquire segment assets that are expected to be used for more than one fi nancial year.


3. Property, plant and equipment

Buildings andimprovements

Plant and equipment

Motor vehicles

Offi ceequipment

Construction-in-progress Total

The Group $’000 $’000 $’000 $’000 $’000 $’000

Cost

Balance at 1 January 2007 20,636 55,352 1,168 1,431 3,211 81,798

Exchange differences 87 226 3 6 6 328

Additions - 6,987 633 56 5,047 12,723

Transfers 2,649 141 - - (2,790) -

Disposals - (257) (28) (5) - (290)

Reclassifi cation to land use rights (730) - - - - (730)

Write off - (14) - - - (14)

Balance at 31 December 2007 22,642 62,435 1,776 1,488 5,474 93,815

Accumulated depreciation

Balance at 1 January 2007 2,342 13,957 253 687 - 17,239

Exchange differences 8 44 - 2 - 54

Depreciation for the fi nancial year 782 5,002 205 218 - 6,207

Disposals - (133) (14) - - (147)

Write off - (5) - - - (5)

Balance at 31 December 2007 3,132 18,865 444 907 - 23,348

Carrying amount

At 31 December 2007 19,510 43,570 1,332 581 5,474 70,467





Buildings andimprovements

Plant and equipment

Motor vehicles

Offi ceequipment

Construction-in-progress Total

The Group $’000 $’000 $’000 $’000 $’000 $’000

Cost

Balance at 1 January 2006 13,077 32,199 1,014 1,238 6,269 53,797

Exchange differences (760) (1,940) (53) (63) (266) (3,082)

Additions 373 4,514 499 259 26,023 31,668

Transfers 8,234 20,581 - - (28,815) -

Disposals - - (292) - - (292)

Write off (288) (2) - (3) - (293)

Balance at 31 December 2006 20,636 55,352 1,168 1,431 3,211 81,798

Accumulated depreciationBalance at 1 January 2006 2,023 10,910 279 550 - 13,762Exchange differences (105) (586) (14) (28) - (733)Depreciation for the fi nancial year 464 3,633 102 168 - 4,367Disposals - - (114) - - (114)Write off (40) - - (3) - (43)

Balance at 31 December 2006 2,342 13,957 253 687 - 17,239

Carrying amount

At 31 December 2006 18,294 41,395 915 744 3,211 64,559

As at the balance sheet date, certain plant and machinery with net book value of approximately $35,217,000 (2006: $26,224,000) were pledged as securities for bank borrowings.




Buildings and improvements

Offi ce equipment Total

$’000 $’000 $’000

The Company

Cost

Balance at 1 January 2007 5 28 33

Additions - 5 5

Balance at 31 December 2007 5 33 38



Depreciation for the fi nancial year - 2 2Balance at 31 December 2007 5 29 34

Carrying amountAt 31 December 2007 - 4 4

CostBalance at 1 January 2006 and 31 December 2006 5 28 33



Depreciation for the fi nancial year - 2 2

Balance at 31 December 2006 5 27 32

Carrying amount

At 31 December 2006 - 1 1

4. Subsidiaries

The Company2007 2006$’000 $’000

Unquoted equity shares, at cost 9,682 9,682Amounts due from subsidiaries 98,517 99,010

108,199 108,692

The amounts due from subsidiaries form part of the Company’s net investment in certain of its subsidiaries. They are interest free, unsecured and settlement is neither planned nor likely to occur in the foreseeable future.

Details of the subsidiaries are as follows:

Name of subsidiaries

Effective equity

interest

Country of incorporation/

operations Principal activities2007 2006

% %

North East Industries Pte Ltd (1) 100 100 Singapore Investment holdingGreen Oasis Pte Ltd (1) 100 100 Singapore Investment holdingMidas Ventures Pte Ltd (1) 100 100 Singapore Trading of aluminium

alloy and related products

Midas Trading (Beijing) Co., Ltd (2) 100 100 People’s Republic of China (“PRC”)

Agency and trading of aluminium alloy, polyethylene pipes and other related products

Subsidiary of North East Industries Pte LtdJilin Midas Aluminium Industries Co.,Ltd (2)

100 100 PRC Manufacture of aluminium alloy extrusion products

Subsidiary of Green Oasis Pte Ltd Shanxi Wanshida Engineering Plastics Co., Ltd (2)

100 100 PRC Manufacture of polyethylene pipes

(1) Audited by BDO Raffl es, Singapore

(2) Audited by Reanda Beijing, Certifi ed Public Accountant, PRC



5. Associate

The Group The Company2007 2006 2007 2006

$’000 $’000 $’000 $’000

Unquoted equity investment, at cost

Balance at beginning of fi nancial year 29,729 29,729 29,729 29,729

Additions during the fi nancial year 4 - 4 -

Share of profi ts 1,256 - - -

Balance at end of fi nancial year 30,989 29,729 29,733 29,729

Details of the associate are as follows:

Name of associate

Effective equity

interest

Country of incorporation/

operations Principal activities2007 2006

% %

Nanjing SR Puzhen Rail Transport Co., Ltd (1)

32.5 32.5 PRC Manufacture and sale of metro trains, bogies and their related parts

(1) Audited by Reanda Beijing, Certifi ed Public Accountant, PRC

Nanjing SR Puzhen Rail Transport Co., Ltd was incorporated on 18 October 2006 and commenced its commercial operations with effect from January 2007. The summary of the fi nancial information as at 31 December 2007 are as follows:

The Group and the Company2007 2006

$’000 $’000

Total assets 150,240 80,068Total liabilities 65,966 9Revenue 72,102 -Profi t attributable to equity holders 3,864 -

6. Land use rights

The Group2007 2006$’000 $’000

CostBalance at beginning of the fi nancial year 2,134 2,244Addition during the fi nancial year 318 -Transfer from property, plant and equipment 730 -Exchange differences 5 (110)Balance at end of the fi nancial year 3,187 2,134

Accumulated amortisationBalance at beginning of the fi nancial year 240 209Amortisation for the fi nancial year 44 43Exchange differences 1 (12)Balance at end of the fi nancial year 285 240

Carrying amountAt end of the fi nancial year 2,902 1,894

7. Prepaid rental

The Group2007 2006$’000 $’000

CostBalance at beginning of the fi nancial year 38 39Exchange differences - (1)Balance at end of the fi nancial year 38 38

Accumulated amortisationBalance at beginning of the fi nancial year 9 7Amortisation for the fi nancial year 1 2Balance at end of the fi nancial year 10 9

Carrying amountAt end of the fi nancial year 28 29


8. Pledged bank deposits As at the balance sheet date, bank deposits pledged to fi nancial institution to secure performance

bonds issued amounted to $5,004,596 (2006: $5,366,000). The pledged bank deposits bear interest at effective rate ranging from 0.72% to 1.00% (2006: 0.72% to 1.00%) per annum and for a tenure ranging between 1 year to 3 years (2006: 1 year to 2 years).

The carrying amounts of pledged bank deposits approximate their fair value and are denominated in the following currencies:

The Group2007 2006

$’000 $’000

Euro 66 1,275Renminbi 4,939 4,091

5,005 5,366

9. Inventories

The Group2007 2006

$’000 $’000

Finished goods 4,264 2,830Work-in-progress 7,128 2,032Raw materials 8,198 4,942

19,590 9,804

The cost of inventories recognised as expense and included in “Cost of sales” in consolidated profi t and loss account amounted to $84,462,000 (2006: $63,271,000).


10. Trade and other receivables


$’000 $’000 $’000 $’000

Trade receivables 31,323 34,345 - -

Allowance for doubtful trade receivables (469) (469) - -

30,854 33,876 - -

Deposits 175 250 33 33

Prepayments 493 363 305 261

Staff advances 1,782 588 6 6

GST and VAT receivables 6 415 6 28Advances for purchases of plant and equipment and inventories 4,565 6,912 - -

Notes receivables 1,480 687 - -

Amount due from an associate 3 - - -

Others – non-trade 666 402 4 -

40,024 43,493 354 328

Others mainly consist of amount due from third parties which is interest-free and repayable on demand.

The average credit period on sales of goods is 90 days to 120 days (2006: 90 days to 120 days). Trade receivables are provided based on estimated irrecoverable amounts from the sale of goods, determined by reference to past default experience.

As at 31 December 2007, the past due trade receivables beyond credit period of 90 days to 120 days but not impaired amounted to $5,373,000 (2006: $11,671,000) as there has not been a signifi cant change in credit quality and the amounts are still considered recoverable. The past due trade receivables beyond credit period of 90 days to 120 days amounted to $469,000 (2006: $469,000) are impaired and have been fully provided.

The Group does not hold any collateral over these balances.



10. Trade and other receivables

Movements in allowance for doubtful trade receivables are as follows:


$’000 $’000 $’000 $’000

Balance at beginning of the fi nancial year 469 450 - -Allowance for the fi nancial year 5 41 - -Write back of allowance for doubtful trade receivables (2) - - -Exchange differences (3) (22) - -Balance at end of the fi nancial year 469 469 - -

The carrying amounts of trade and other receivables approximate their fair values and are denominated in the following currencies:


$’000 $’000 $’000 $’000

Singapore Dollars 356 330 354 328Renminbi 36,111 42,531 - -Euro 3,557 348 - -United States Dollars - 284 - -

40,024 43,493 354 328

11. Cash and cash equivalents

The Group The Company2007 2006 2007 2006$’000 $’000 $’000 $’000

Cash and bank balances 51,666 42,972 71 4,200Fixed deposits - 6,972 - -

51,666 49,944 71 4,200

The fi xed deposits bear effective interest rate at 6.15% (2006: 6.15%) per annum and for a tenure of approximately 3 months (2006: 3 months).

The carrying amounts of cash and cash equivalents approximate their fair value and are denominated in the following currencies:


Euro 1,240 196 6 9Renminbi 49,866 44,760 1 -Singapore Dollars 125 2,260 55 2,179United States Dollars 432 2,727 6 2,011Others 3 1 3 1

51,666 49,944 71 4,200

12. Trade and other payables


Trade payables 8,519 10,888 - -Other payables and accruals 5,027 755 71 52Advance from customers 879 - - -VAT payables 576 763 - -Notes payable - 1,964 - -Others 340 241 - 30

15,341 14,611 71 82

These amounts are non-interest bearing. Trade payables are normally settled on 30-day to 90-day terms while other payables have an average term of 30 days (2006: 30 days).



12. Trade and other payables

The carrying amount of trade and other payables approximate their fair values and are denominated in the following currencies:


$’000 $’000 $’000 $’000

Singapore Dollars 89 95 71 82Renminbi 15,252 14,388 - -United States Dollars - 128 - -

15,341 14,611 71 82

13. Bank borrowings – secured

The Group2007 2006

$’000 $’000

CurrentBank Loan 1 5,919 5,892Bank Loan 2 6,491 4,891Bank Loan 3 3,003 2,989Bank Loan 4 2,960 -

18,373 13,772Non-currentBank Loan 4 - 2,946Total bank borrowings 18,373 16,718

(a) Security granted

(i) Bank Loan 1 is secured by a mortgage of plant and equipment with net book value of $30,261,000 (2006: $20,694,000). The effective weighted average interest rate was 7.33% (2006: 6.90%) per annum. The interest rate for Bank Loan 1 is based on fl oating rate of 8% plus the benchmark interest rate as quoted by The People’s Bank of China. Bank Loan 1 has a repayment term of 2 years and repayable on 20 August 2008.

13. Bank borrowings – secured

(ii) Bank Loan 2 is secured by a mortgage of plant and equipment with net book value of $30,261,000 (2006: $20,694,000). The interest rate for Bank Loan 2 ranges from 6.00% to 6.68% (2006: 5.63% to 5.58%) per annum. Bank Loan 2 has a repayment term of 1 year and repayable within the next twelve months from balance sheet date.

(iii) Bank Loan 3 is secured by a mortgage of plant and equipment with net book value of $4,956,000 (2006: $5,530,000). The interest rate for Bank Loan 3 ranges from 7.67% to 7.88% (2006: 7.02% to 8.19%) per annum. Bank Loan 3 has a repayment term of 1 year and repayable within the next twelve months from balance sheet date.

(iv) Bank Loan 4 is secured by a mortgage of plant and equipment with net book value of $30,261,000 (2006: $20,694,000). The effective weighted average interest rate was 7.33% (2006: 7.05%) per annum. The interest rate for Bank Loan 4 is based on fl oating rate of 10% plus the benchmark interest rate as quoted by The People’s Bank of China. Bank Loan 4 has a repayment term of 2 years and repayable in a lump sum on 11 October 2008.

(b) Maturity of bank borrowings

The total bank borrowings had the following maturity:

The Group2007 2006$’000 $’000

Within one fi nancial year 18,373 13,772After one fi nancial year but within fi ve fi nancial years - 2,946

18,373 16,718

(c) Currency risk

The carrying amount of total bank borrowings was denominated in Renminbi at balance sheet date.

14. Due to a Director

The Group and the Company

The amount due is non-trade, unsecured, interest-free and is repayable on demand. The carrying amount is denominated in Singapore dollar.



15. Share capital

The Group and the Company2007 2007 2006 2006

Numberof shares $’000

Numberof shares $’000

Balance at beginning of the fi nancial year 841,917,800 128,878 764,817,800 30,593

Issuance of ordinary shares pursuant for private placement at $0.82 - - 76,500,000 62,730

Issuance expenses - - - (1,192)

Issuance of ordinary shares in respect of the conversion of employee share options at $0.28 and $0.873 each (2006: $0.28) respectively 3,250,000 1,710 600,000 168

Transfer of option reserve to share capital upon exercise of employee share option - 426 - 42

Transfer from share premium - - - 36,537Balance at end of the fi nancial year 845,167,800 131,014 841,917,800 128,878

On 6 Feb 2007, 1,900,000 ordinary shares were issued in respect of the conversion of share options under the Employee Share Option Scheme (“ESOS”). The remaining 1,350,000 ordinary shares were issued under ESOS between 14 May 2007 and 31 December 2007.

On 19 May 2006, the Company issued 76,500,000 new shares from the placement of $0.82 each to raise funds from the capital markets to fi nance business expansion.

On 19 May 2006, 550,000 ordinary shares were issued in respect of the conversion of share options under the Employee Share Option Scheme (“ESOS”). Subsequently, on 13 October 2006, an additional 50,000 ordinary shares were issued under ESOS.

The Singapore Companies (Amendment) Act 2005 came into effect on 30 January 2006. Among other things, the Companies Act was amended to abolish the concept of par value, authorised share capital, share premium, capital redemption reserve and share discounts. As a result, share capital does not have a par value and there is no authorised share capital.

16. Foreign currency translation reserve

The Group

The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of the fi nancial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. Movement in this account is set out in the statement of changes in equity.

17. General reserve

The Group

General reserve represents the amount transferred from profi t after income tax of the subsidiaries incorporated in the People’s Republic of China (“PRC”) in accordance with the PRC statutory requirements. The general reserve cannot be reduced except where approval is obtained from the relevant PRC authority to apply the amount either in setting off the accumulated losses or increasing share capital. Movement in this account is set out in the statement of changes in equity.

18. Share option reserve The Group and the Company

Share option reserve represents the equity-settled share options granted to employees. The reserve is made up of the cumulative value of services received from employees recorded on grant of equity-settled share options.

The Group andthe Company

2007 2006

$’000 $’000

Balance at beginning of the fi nancial year 799 118

Share based payment expense 1,623 723Transfer of option reserve to share capital upon exercise of ESOS (426) (42)Balance at end of the fi nancial year 1,996 799



18. Share option reserve

Equity-settled share options scheme

The Company has a share option scheme for all employees of the Group. An option entitles the option holder to subscribe for a specifi c number of new ordinary shares in the Company comprised in the option at a subscription price per share determined with reference to the market price of the share at the time of grant of the option.

Options granted with the subscription price set at the market price shall only be exercised after the fi rst anniversary from the date of grant of the option. The shares under option may be exercised in whole or in part thereof.

Options granted will lapse when the option holder ceases to be a full-time employee of the Group subject to certain exceptions at the discretion of the Company.

Details of the share options outstanding during the fi nancial year are as follows:

The Group and the Company

Balance at beginning of

fi nancial year

Granted during the

fi nancial year

Exercised during the

fi nancial year

Balance at end of

fi nancial yearExercised

price

At 31 December 2007

2005 options 1,900,000 - (1,900,000) - $0.282006 options 4,950,000 - (1,350,000) 3,600,000 $0.872007 options - 4,600,000 - 4,600,000 $1.99

6,850,000 4,600,000 (3,250,000) 8,200,000

At 31 December 2006

2005 options 2,500,000 - (600,000) 1,900,000 $0.282006 options - 4,950,000 - 4,950,000 $0.87

2,500,000 4,950,000 (600,000) 6,850,000

The weighted average share price at the date of exercise for share options exercised during the year was $0.53 (2006: $0.28). The options outstanding at the end of the fi nancial year have a weighted average remaining contractual life of 4.5 years (2006: 4.5 years).

In 2007, 4,600,000 options were granted on 14 May 2007. The estimated fair value of the share options granted is $1,978,000. In 2006, 4,950,000 options were granted on 11 May 2006. The estimated fair value of the share options granted is $665,000.

These fair values for the share options granted were calculated using the Hull-White option pricing model. The inputs into the model were as follows:

18. Share option reserve

Equity-settled share options scheme

The Group andthe Company2007 2006

Weighted average share price $0.53 $0.28Weighted average exercise price $1.99 $0.87Expected volatility 44.0% 44.2%Expected life 5 5Risk free rate 3.05% 3.05%Expected dividend yield 1.3% 0.8%

The volatility percent was determined by taking a sample of historical closing share prices starting from the fi rst week of July 2004 (after eliminating the effect of share subdivision) to the last week of 2007 to forecast future volatility trend. As the period of trading is short, caution must be put on the accuracy of this volatility.

The maximum life of the options granted is 5 years in accordance with the Midas Employee Share Option Scheme set out on the prospectus dated 11 February 2004.

The risk-free rate is assumed to be the latest available yield of 3.05% of a 5-year government bond, given that the maximum lifespan of the options is 5 years.

The exit rate is assumed to be zero as the vesting period is only one year. The exercise multiple is assumed to be 1.0 time for directors, senior management, middle management and support staff, on the assumption that employees will exercise their options as long as the stock price is the same as the exercise price.

19. Revenue

The Group2007 2006$’000 $’000

Sales of polyethylene pipes 13,469 21,137Sales of aluminium extrusion products 107,897 71,766Trading of aluminium alloy, polyethylene pipes and related products 19,033 11,861

140,399 104,764



20. Other operating income

The Group2007 2006

$’000 $’000

Commission income 471 279Foreign exchange gain 315 1,211Income from disposal of scrap materials 24 191Interest income from bank deposits 16 570Interest income from fi xed deposits 53 397Interest income from loan to third parties 108 28Reinvestment tax refunds 1,510 -Sundry income 32 101

2,529 2,777

21. Finance cost

The Group2007 2006

$’000 $’000

Bank charges 108 -Interest on early utilisation on notes receivables 535 -Interest on bank borrowings 1,330 757

1,973 757

22. Profi t before income tax

The following items have been included in arriving at profi t before income tax:

The Group2007 2006$’000 $’000

Non-audit fee payable 12 8Depreciation of property, plant and equipment 6,207 4,367Allowance for doubtful receivables 5 41Write-back of allowance for doubtful trade receivables (2) -Amortisation of prepaid rental and land use rights 45 45Loss on disposal of property, plant and equipment 98 154Write off of property, plant and equipment 9 250Operating leases 435 358Share based payment expense 1,623 723

23. Staff costs

The Group2007 2006$’000 $’000

Salaries, allowances and bonuses 3,143 2,565Contributions to defi ned contributions plans 415 159Share options granted (Note 18) 1,623 723

5,181 3,447

24. Income tax

The Group2007 2006$’000 $’000

Provision of income tax for current year 2,549 2,156Underprovision of income tax in prior year 856 -Current income tax 3,405 2,156


24. Income tax

Reconciliation of effective tax rate is as below:

The Group2007 2006

$’000 $’000

Profi t before income tax 35,319 27,723

Income tax using statutory rate of 18% (2006: 20%) 6,357 5,545Effect of different tax rates of overseas operations (139) 2,570Income not subject to tax (226) -Expenses not deductible for tax purposes 1,444 2Tax relief (4,887) (5,869)Others - (92)Provision of income tax for current year 2,549 2,156Underprovision of income tax in prior year 856 -Current income tax 3,405 2,156

In accordance with the “Income Tax Law of the People’s Republic of China (“PRC”) for Enterprises with Foreign Investment and Foreign Enterprises”, the subsidiaries in the PRC are entitled to full exemption from Enterprise Income Tax (“EIT”) for the fi rst two years commencing from their fi rst profi table year and thereafter entitled to a 50% relief of EIT for the next three years.

A subsidiary obtained the foreign investment enterprise license in April 2002 and accordingly is exempted from income tax commencing from April 2002. In 2006, the subsidiary has been granted two additional income tax incentives from the Income Tax Law of the People’s Republic of China. The fi rst income tax incentive was granted as the subsidiary increase the share capital. The second income tax incentive on the new production line which profi t arise from the new production line is entitled to full exemption from Enterprise Income Tax (“EIT”) for the fi rst two years commencing from their fi rst profi table year and thereafter entitled to a 50% relief of EIT for the next three years.

Another subsidiary obtained the foreign investment enterprise license in 2001 but incurred losses in 2001. Accordingly, its fi rst year of exemption is 2002.


25. Earnings per share

The calculations for earnings per share of the Group are based on:

The Group2007 2006

Profi t attributable to equity holders ($’000) 31,914 25,567

The Group2007 2006

Weighted average number of ordinary shares in basic earnings per share (’000) 844,298 803,355

Dilutive effect - share options (‘000) 11,444 1,108

Weighted average number of shares on a fully diluted basis (’000) 855,742 804,463

Basic earnings per share (cents) 3.78 3.18Diluted earnings per share (cents) 3.73 3.18

Basic earnings per share is calculated by dividing the Group’s profi t attributable to equity holders by the weighted average number of ordinary shares in issue during the fi nancial year.

Diluted earnings per share amounts are calculated by dividing the profi t attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the fi nancial year plus the weighted average number of ordinary shares that would be issued on the conversion of all dilutive potential ordinary shares into ordinary shares.



26. Dividends

The Group andThe Company

2007 2006

$’000 $’000

Dividends paid during the fi nancial year:Final dividend of $0.005 (2006: $0.0025) per share paid in respect of the fi nancial year ended 2006 (2006: Final dividend paid in respect of fi nancial year ended 2005) 4,219 1,912

Interim tax-exempt dividends of $0.0100 (2006: $0.0075) per ordinary share under the exempt-1-tier system 8,449 4,209

12,668 6,121

Dividend declared during the fi nancial yearInterim tax-exempt dividend of $0.005 (2006: $0.0050) per ordinary share 4,226 4,209

16,894 10,330

A third interim dividend for the fi nancial year ended 31 December 2007 amounting to $4,226,000 (2006: $4,209,000) which has been recognised as a liability at end of fi nancial year.

Subsequent to the balance sheet date, the directors proposed a fi nal tax-exempt dividend of $0.005 per ordinary share amounting to $4,226,000 (2006: $4,209,000) under the exempt-1-tier system. The proposed dividend has not been recognised as a liability at 31 December 2007 in accordance with FRS 10 – Events after the balance sheet date.

27. Contingent liabilities

The Group2007 2006

$’000 $’000

Performance bonds 5,005 5,366

The performance bonds are secured by pledged bank deposits, equivalent to $5,004,596 (2006: $5,366,000).

28. Operating lease commitments

Where the Group is a lessee

As at the balance sheet date, the future aggregate minimum lease payments under non-cancellable operating leases contracted for at the reporting date but not recognised as liabilities are as follows:

The Group 2007 2006$’000 $’000

Within one fi nancial year 400 433After one fi nancial year but within fi ve fi nancial years 247 645

647 1,078

Operating lease commitments consist of rental of offi ces starting from June 2004 to February 2010.

29. Signifi cant related party transactions

For the purpose of these fi nancial statements, parties are considered to be related to the Group or the Company if the Group or the Company have the ability, directly or indirectly, to control the party or exercise signifi cant infl uence over the party in making fi nancial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common signifi cant infl uence. Related parties may be individuals or other entities.

In addition to the information disclosed elsewhere in the fi nancial statements, signifi cant related party transactions between the Company and its related parties during the fi nancial year were as follows:

The Company2007 2006$’000 $’000

With subsidiariesDividend income 21,291 10,400Management income - 2,757Payment on behalf 246 67Loan to subsidiaries 3,132 19,629Receipt of payments from subsidiaries 21,054 4,423

With a DirectorRepayment to a Director 6,203 1,076


29. Signifi cant related party transactions

Key management personnel compensation is as follows:

The Group2007 2006

$’000 $’000

Salaries and other short-term employee benefi ts paid to Executive Directors 708 708Post-employment benefi ts-CPF contribution for Executive Directors 15 14Share option granted to Executive Directors 281 439

1,004 1,161

Directors’ remuneration:

The Group2007 2006

$’000 $’000

Directors’ remuneration (other than fee) 723 722Directors’ fee 120 150Share options granted 647 935

1,490 1,807

30. Financial risk management The Group’s activities expose it to capital risk, credit risk, market risk (including interest rate

risks and foreign currency risks), and liquidity risk. The Group’s overall risk management strategy seeks to minimise adverse effects from the volatility of fi nancial markets on the Group’s fi nancial performance.

The Board of Directors is responsible for setting the objectives and underlying principles of fi nancial risk management for the Group. The Group management then establishes the detailed policies such as risk identifi cation and measurement, exposure limits and hedging strategies, in accordance with the objectives and underlying principles approved by the Board of Directors.

The Group and the Company do not hold or issue derivative fi nancial instruments for trading purposes or to hedge against fl uctuation, if any, in interest rates and foreign exchange rates. There has been no change to the Group’s exposure to these fi nancial risks or the manner in which it manages and measures the risk.


30. Financial risk management

(a) Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefi ts for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The Group monitors capital on the basis of the debt to equity ratio. This ratio is calculated as total liabilities divided by equity. Total liabilities is sum of ‘current liabilities’ and ‘non-current liabilities’ as shown in the balance sheet and equity is ‘shareholders’ equity’ as shown in the balance sheet.

The debt-equity ratio as at 31 December 2007 and 2006 were as follows:

The Group2007 2006$’000 $’000

Total liabilities 39,097 41,924Equity 181,574 162,894Debt to equity ratio 0.22 0.26

(b) Credit risk

The Group places its bank balances with credit worthy fi nancial institutions. The Group performs ongoing credit evaluation of its customers’ fi nancial condition and generally does not require collateral. This evaluation includes assessing and valuation of customers’ credit reliability and periodic review of their fi nancial status to determine credit limits to be granted.

The maximum exposure to credit risk in the event that the counter parties fail to perform their obligations as at end of the fi nancial year in relation to each class of recognised fi nancial assets is the carrying amount of those assets stated in the balance sheet.

Concentrations of credit risk relating to trade receivables is limited due to the Group’s many varied customers. The Group’s historical experience in the collection of trade receivable falls within the recorded allowances. Due to these factors, management believes that no additional credit risk beyond amounts provided for collection losses is inherent in the Group’s receivables.




(c) Market risk

Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates will affect the Group’s income or the value of its holdings of fi nancial instruments. The objective of market risk instrument is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

(i) Interest rate risk

The Group’s exposure to changes in interest rates relates primarily to interest-earning fi nancial assets and interest-bearing fi nancial liabilities. Interest rate risk is managed by the Group on an on-going basis with the primary objective of limiting the extent to which net interest expense could be affected by an adverse movement in interest rates.

The following tables sets out the carrying amount, by maturity, of the Group’s fi nancial instruments, that are exposed to interest rate risks:

Within one fi nancial

year

After one fi nancial year but no later than fi ve

fi nancial year Total$’000 $’000 $’000

The GroupAt 31 December 2007

Financial assetsPledged bank deposits - 5,005 5,005Cash and cash equivalents 51,666 - 51,666

51,666 5,005 56,671Financial liabilityBank borrowings – secured 18,373 - 18,373

At 31 December 2006Financial assetsPledged bank deposits - 5,366 5,366Cash and cash equivalents 49,944 - 49,944

49,944 5,366 55,310Financial liabilityBank borrowings – secured 13,772 2,946 16,718


(c) Market risk

(i) Interest rate risk

Within one fi nancial

year

After one fi nancial year but no later than fi ve

fi nancial year Total$’000 $’000 $’000

The CompanyAt 31 December 2007

Financial assetCash and cash equivalents 71 - 71

At 31 December 2006

Financial assetCash and cash equivalents 4,200 - 4,200

Interest rate sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to interest rate risks for both derivatives and non-derivative instruments at the balance sheet date. For fl oating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the balance sheet date was outstanding for the whole year. The sensitivity analysis assumes an instantaneous 100 basis point (“bp”) change in the interest rates from the balance sheet date, with all variables held constant.

Impact to profi t and loss account100 bp increase 100 bp decrease

$’000 $’000The GroupAt 31 December 2007Notes receivables (54) 54Bank borrowings (133) 133

At 31 December 2006Bank borrowings (76) 76



(c) Market risk

(ii) Foreign currency risk

The Group’s foreign currency exposures arose mainly from the exchange rate movements of the Renminbi against Singapore dollars, which is also the Group’s reporting currency. Revenues and sales, mainly denominated in Renminbi, are matched with corresponding costs in the same foreign currency. The Group makes use of natural hedge in the above situation to minimise its exposure to foreign currency movements. It is not the Group’s policy to enter into any fi nancial derivates to hedge its exchange risk.

The following table sets out the carrying amount of foreign currency denominated monetary assets and liabilities of the Group’s:

Assets Liabilities2007 2006 2007 2006

$’000 $’000 $’000 $’000

Euro 4,863 1,819 - -Renminbi 90,916 84,410 18,462 31,106Singapore Dollars 481 2,590 15,252 95United States Dollars 432 3,011 - 138Other 3 1 - -

96,695 91,831 33,714 31,339

Foreign currency sensitivity analysis

A 10% strengthening of Renminbi (“RMB”) against the following currencies at the reporting date would increase/(decrease) profi t or loss and shareholder’s equity by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.



(c) Market risk

(ii) Foreign currency risk

Increase/(Decrease)Profi t attributable to equity holders

Shareholders’ equity

$’000 $’000The GroupAt 31 December 2007

Euro (486) -Renminbi - (6,599)United States Dollars (43) -At 31 December 2006

Euro (182) -Renminbi - (4,661)United States Dollars (288) -

(d) Liquidity risk

Liquidity risk refers to the risk in which the Group encounters diffi culties in meeting its short-term obligations. Liquidity risks are managed by matching the payment and receipt cycle. The table below analyses the maturity profi le of the Group’s fi nancial liabilities based on contractual undiscounted cash fl ows.

The following table details the Group’s remaining contractual maturity for its non-derivative fi nancial instruments. The table has been drawn up based on undiscounted cash fl ows of fi nancial instruments based on the earlier of the contractual date or when the Group is expected to pay. The table includes both interest and principal cash fl ows.




(d) Liquidity risk

Effectiveinterest

rate Within one

fi nancial year

After one fi nancial year butno later than fi ve

fi nancial year Total% $’000 $’000 $’000

The GroupAt 31 December 2007

Financial liabilitiesTrade and other payables - 15,341 - 15,341Bank borrowings – secured 6.02 to 7.71 15,413 2,960 18,373Dividends payable - 4,226 - 4,226

34,980 2,960 37,940

At 31 December 2006

Financial liabilitiesTrade and other payables - 14,611 - 14,611Bank borrowings – secured 6.02 to 7.70 13,772 2,946 16,718Due to a related party - 6,203 - 6,203Dividends payable - 4,209 - 4,209

38,795 2,946 41,741

The CompanyAt 31 December 2007

Financial liabilitiesTrade and other payables - 71 - 71Dividends payable - 4,226 - 4,226

4,297 - 4,297

At 31 December 2006

Financial liabilitiesTrade and other payables - 82 - 82Due to a Director - 6,203 - 6,203Dividends payable - 4,209 - 4,209

10,494 - 10,494


(d) Liquidity risk

The Group’s operations are fi nanced mainly through equity, accumulated profi ts and bank borrowings. Adequate lines of credits are maintained to ensure the necessary liquidity is available when required.

(e) Fair values

The carrying amount of the fi nancial assets and fi nancial liabilities in the consolidated fi nancial statements approximate their fair values due to the relative short term maturity of these fi nancial instruments. The fair values of other classes of fi nancial assets and liabilities are disclosed in the respective notes to the fi nancial statements.

The fair value of other fi nancial assets and fi nancial liabilities are determined in

accordance with generally accepted pricing models based on discounted cash fl ow.

31. Segment information (a) Business segments

The operations of the Group are grouped mainly under the Aluminium Alloy Division whose principal activities are manufacturing and sale of aluminium alloy extrusion products, Polyethylene Pipe Division whose principal activities are manufacturing and sale of polyethylene pipes and the Agency and Procurement Division whose principal activities are agency and trading of aluminium alloy, polyethylene pipes and other related products. Most of the assets of the Group are, deployed in these operations.

Segment revenue and expense are revenue and expense reported in the Group’s profi t and loss account that either are directly attributable to a segment or can be allocated on a reasonable basis to a segment.

Segment assets are all operating assets that are employed by a segment in its operating activities and that either are directly attributable to the segment or can be allocated to the segment on a reasonable basis.

Segment liabilities are all operating liabilities of a segment and that either are directly attributable to the segment or can be allocated to the segment on a reasonable basis. Segment liabilities exclude income tax liabilities.


31. Segment information (a) Business segments

Aluminium Alloy

Division

Agency & Procurement

DivisionPolyethylene Pipe Division

Corporate Division Total

$’000 $’000 $’000 $’000 $’000

2007Revenue 107,897 19,033 13,469 - 140,399

ResultSegment result 36,784 302 2,677 (3,727) 36,036Interest expense (1,973)Share of profi ts of an associated company 1,256

Profi t before income tax 35,319Income tax (3,405)Profi t attributable to equity holders 31,914

Other informationAdditions of property, plant and equipment 12,149 533 36 5 12,723

Depreciation of property, plant and equipment 5,294 126 785 2 6,207

Amortisation of land use rights 27 - 17 - 44


31. Segment information

(a) Business segments

Aluminium Alloy

Division


DivisionPolyethylene Pipe Division

Corporate Division Total

$’000 $’000 $'000 $'000 $'000

2006Revenue 71,766 11,861 21,137 - 104,764

ResultSegment result 25,400 298 4,870 (2,088) 28,480Interest expense (757)

Profi t before income tax 27,723Income tax (2,156)

Profi t attributable to equity holders 25,567

Other informationAdditions of property, plant and equipment 31,480 123 65 - 31,668

Depreciation of property, plant and equipment 3,575 35 755 2 4,367

Amortisation of land use rights 26 - 17 - 43




(a) Business segments

Aluminium Alloy

Division


DivisionPolyethylene Pipe Division Total

$'000 $’000 $'000 $'0002007

AssetsSegment assets 138,705 7,635 42,903 189,243Unallocated corporate assets 31,489

220,732

LiabilitiesSegment liabilities 28,225 1,098 5,529 34,852Unallocated corporate liabilities 4,306

39,158

Aluminium Alloy

Division


DivisionPolyethylene Pipe Division Total

$'000 $’000 $'000 $'0002006

AssetsSegment assets 134,013 14,416 22,131 170,560Unallocated corporate assets 34,258

204,818

LiabilitiesSegment liabilities 24,767 239 6,137 31,143Unallocated corporate liabilities 10,781

41,924


(b) Geographical segment

Secondary segment information is not presented as the Group’s principal activities and assets are located in the People’s Republic of China.

32. Commitments

The Group2007 2006$’000 $’000

Purchases contracted 11,245 -

33. Authorisation of fi nancial statements

The consolidated fi nancial statements for the fi nancial year ended 31 December 2007 were authorised for issue in accordance with a resolution of the Directors on 20 March 2008.


Statistics of Shareholdings as at 24 March 2008

Distribution of Shareholdings

Size of No. of No. of Shareholdings Shareholders Percentage Shares Held Percentage 1 - 999 5 0.15% 697 0.00%1,000 - 10,000 2,250 67.85% 12,894,691 1.53%10,001 - 1,000,000 1,028 31.00% 56,918,400 6.73%1,000,001 and above 33 1.00% 775,354,012 91.74% 3,316 100.00% 845,167,800 100.00%

Issued share capital : $131,738,377.68Number of ordinary shares : 845,167,800Number of treasury shares : NILVoting rights : one vote per share Based on information available to the Company as at 24 March 2008, approximately 49.69% of the issued ordinary shares of the Company is held by the public and, therefore, Rule 723 of the Listing Manual issued by the Singapore Exchange Securities Trading Limited is complied with.

Top Twenty Shareholders

S/No. Name No. of Shares Percentage

1 CHEN WEIPING 164,905,200 19.51% 2 CHEW HWA KWANG PATRICK 109,211,800 12.92% 3 DBS NOMINEES PTE LTD 106,517,863 12.60% 4 CITIBANK NOMS S’PORE PTE LTD 87,945,982 10.41% 5 HSBC (SINGAPORE) NOMS PTE LTD 66,905,152 7.92% 6 UOB KAY HIAN PTE LTD 33,590,000 3.97% 7 DBSN SERVICES PTE LTD 33,325,670 3.94% 8 RAFFLES NOMINEES PTE LTD 32,912,486 3.89% 9 TOMMIE GOH THIAM POH 23,046,000 2.73% 10 DMG & PARTNERS SECURITIES PTE LTD 18,853,000 2.23% 11 MORGAN STANLEY ASIA (S’PORE) PTE LTD 14,365,708 1.70% 12 YAP CHONG HIN GABRIEL 10,620,000 1.26% 13 DB NOMINEES (S) PTE LTD 10,578,629 1.25% 14 CITIBANK CONSUMER NOMS PTE LTD 9,675,000 1.14% 15 CIMB-GK SECURITIES PTE. LTD. 8,930,000 1.06% 16 UNITED OVERSEAS BANK NOMINEES PTE LTD 4,271,000 0.51% 17 MERRILL LYNCH (S’PORE) PTE LTD 3,956,754 0.47% 18 OCBC SECURITIES PRIVATE LTD 3,901,000 0.46% 19 HL BANK NOMINEES (S) PTE LTD 3,600,000 0.43% 20 FOO LAI FUAN 3,000,000 0.35% 750,111,244 88.75%

Substantial Shareholders

As shown in the Register of Substantial Shareholders as at 24 March 2008

No of Shares Name of Shareholders Direct Interest Deemed Interest Chen Wei Ping 204,905,200 - Chew Hwa Kwang Patrick 119,511,800 - Chew Hua Seng 59,176,000 -


Notice Of Annual General Meeting

NOTICE IS HEREBY GIVEN that the Seventh Annual General Meeting of Midas Holdings Limited (the “Company”) will be held at Pearl Room, Second Floor, Sheraton Towers Singapore, Thirty-Nine Scotts Road, Singapore 228230 on Wednesday, 30 April 2008 at 10.00 a.m. to transact the following business:

AS ORDINARY BUSINESS

1. To receive and adopt the Directors' Report and Audited Accounts of the Company for the fi nancial year ended 31 December 2007 together with the Auditors’ Report thereon.

[Resolution 1]

2. To declare a Final Dividend of 0.5 cents per ordinary share for the fi nancial year ended 31 December 2007 (2006 : 0.5 cents). [Resolution 2]

3. To approve the Directors’ fees of S$120,000/- for the fi nancial year ended 31 December 2007 (2006 : S$150,000/-). [Resolution 3]

4. To re-elect the following Directors retiring pursuant to Article 91 of the Company’s Articles of

Association:-

(i) Mr. Chen Wei Ping [Resolution 4] (ii) Mr. Chew Chin Hua [Resolution 5]

5. To re-appoint Messrs BDO Raffl es, as the Company’s Auditors and to authorise the Directors to fi x their remuneration. [Resolution 6]

6. To transact any other ordinary business which may properly be transacted at an Annual General Meeting.

AS SPECIAL BUSINESS

To consider and, if thought fi t, to pass the following Ordinary Resolutions with or without any modifi cations:-

7. Authority to allot and issue shares up to 50% of the total number of issued shares

“That pursuant to Section 161 of the Companies Act, Cap. 50 and subject to Rule 806 of the Listing Manual of the Singapore Exchange Securities Trading Limited (“SGX-ST”), authority be and is hereby given to the Directors of the Company to issue shares or convertible securities in the capital of the Company (whether by way of rights, bonus or otherwise) at any time and upon such terms and conditions and for such purposes and to such persons as the Directors may in their absolute discretion deem fi t provided that: -

(i) the aggregate number of shares and convertible securities to be issued pursuant to this Resolution does not exceed 50 per cent (50%) of the total number of issued shares in the capital of the Company (as calculated in accordance with sub-paragraph

(ii) below), of which the aggregate number of shares and convertible securities to be issued other than on a pro rata basis to existing shareholders of the Company does not exceed 20 per cent (20%) of the total number of issued shares in the capital of the Company (as calculated in accordance with sub-paragraph (ii) below);

(ii) (subject to such manner of calculation as may be prescribed by the SGX-ST), for the purpose of determining the aggregate number of shares that may be issued under sub-paragraph (i) above, the total number of issued shares shall be based on the total number of issued shares in the capital of the Company at the time this Resolution is passed, after adjusting for: -

(a) new shares arising from the conversion or exercise of any convertible securities; (b) new shares arising from exercising share options or vesting of share awards which

are outstanding or subsisting at the time this Resolution is passed provided the options or awards were granted in compliance with Part VIII of Chapter 8 of the Listing Manual of SGX-ST; and

(c) any subsequent consolidation or subdivision of shares; and

(iii) unless revoked or varied by the Company in general meeting, the authority conferred by this Resolution shall continue in force until the conclusion of the next Annual General Meeting of the Company or the date by which the next Annual General Meeting of the Company is required by law to be held, whichever is the earlier.”

[See Explanatory Note (i)] [Resolution 7]

8. Authority to grant options and issue shares under the Midas Employee Share Option Scheme

“That pursuant to Section 161 of the Companies Act, Cap. 50, the Directors of the Company

be and are hereby authorised to offer and grant options in accordance with the Midas Employee Share Option Scheme (“the Scheme”) and to allot and issue from time to time such number of shares in the capital of the Company as may be required to be issued pursuant to the exercise of the options under the Scheme provided always that the aggregate number of shares to be issued pursuant to the Scheme shall not exceed fi fteen per cent (15%) of the total number of issued shares in the capital of the Company from time to time.”

[See Explanatory Note (ii)] [Resolution 8]

BY ORDER OF THE BOARD

Tan Cheng SiewCompany Secretary

Singapore, 14 April 2008


Note:

A Member is entitled to appoint a proxy to attend and vote in his place. A proxy need not be a Member of the Company. Members wishing to vote by proxy at the meeting may use the proxy form enclosed. The completed proxy form must be lodged at the Registered Offi ce of the Company at 2 Shenton Way, #04-01 SGX Centre 1, Singapore 068804 not less than 48 hours before the time appointed for the Meeting.

Note to item no. 4:

The Board of Directors, in consultation with the Nominating Committee, recommends to members the re-election of Messrs Chen Wei Ping and Chew Chin Hua.

Note to Resolution 5

Mr. Chew Chin Hua will, upon re-election as a Director of the Company, remain as the Chairman of the Audit Committee and will be considered independent for the purpose of Rule 704(8) of the Listing Manual of the Singapore Exchange Securities Trading Limited.

EXPLANATORY NOTES ON ORDINARY AND SPECIAL BUSINESSES TO BE TRANSACTED:

ORDINARY BUSINESS

Item 3 is to approve the Directors’ fees of S$120,000/- for three Directors in offi ce for 2007. There were fi ve Directors in offi ce for 2006.

SPECIAL BUSINESS

(i) The proposed Resolution 7, if passed, will empower the Directors of the Company from the date of the above Meeting until the date of the next Annual General Meeting, to allot and issue new shares in the Company (whether by way of rights, bonus or otherwise). The number of shares which the Directors may issue under this Resolution shall not exceed 50% of the total number of issued shares in the capital of the Company. For issue of shares other than on a pro-rata basis to all shareholders of the Company, the aggregate number of shares to be issued shall not exceed 20% of the total number of issued shares in the capital of the Company. This authority will, unless previously revoked or varied at a general meeting, expire at the next Annual General Meeting of the Company.

(ii) The proposed Resolution 8, if passed, will empower the Directors of the Company from the date of the above Meeting until the next Annual General Meeting to issue shares up to an amount in aggregate not exceeding 15% of the total number of issued shares in the capital of the Company from time to time pursuant to the exercise of the options under the Scheme.

Notice Of Annual General Meeting

MID

AS

HO

LDIN

GS

LIM

ITED

(Com

pany

Reg

istr

atio

n N

o.: 2

0000

9758

W)

PRO

XY

FO

RM

Imp

ort

ant

1.

For

inve

stor

s w

ho h

ave

used

the

ir C

PF m

onie

s to

bu

y sh

ares

of

Mid

as H

oldi

ngs

Lim

ited,

the

Ann

ual

Repo

rt 2

007

is f

orw

arde

d to

the

m a

t th

e re

ques

t of

the

ir C

PF A

ppro

ved

Nom

inee

s an

d is

sen

t so

lely

FO

R IN

FORM

ATI

ON

ON

LY.

2.

This

Pro

xy F

orm

is n

ot v

alid

for u

se b

y C

PF In

vest

ors

and

shal

l be

inef

fect

ive

for a

ll in

tent

s an

d pu

rpos

es

if us

ed o

r pu

rpor

ted

to b

e us

ed b

y th

em.

I/We

of

bein

g a

*mem

ber/

mem

bers

of

Mid

as H

oldi

ngs

Lim

ited,

her

eby

appo

int

Nam

eA

ddre

ssN

RIC

/ Pa

sspo

rt N

o.Pr

opor

tion

of

Shar

ehol

ding

s(%

)

and/

or (d

elet

e as

app

ropr

iate

)

as m

y/ou

r pr

oxy/

prox

ies

to v

ote

for

me/

us o

n m

y/ou

r be

half

at t

he S

even

th A

nnua

l Gen

eral

Mee

ting

of t

he C

ompa

ny t

o be

hel

d at

Pea

rl

Room

, Sec

ond

Floo

r, Sh

erat

on T

ower

s Si

ngap

ore,

Thi

rty

Nin

e Sc

otts

Roa

d, S

inga

pore

228

230,

on

Wed

nesd

ay, 3

0 A

pril

2008

at

10.0

0 a.

m.

and

at a

ny a

djou

rnm

ent

ther

eof.

The

prox

y is

req

uire

d to

vot

e as

indi

cate

d w

ith a

n "X

" on

the

res

olut

ions

set

out

in t

he N

otic

e of

Mee

ting

and

sum

mar

ised

bel

ow.

If no

spec

ifi c

dire

ctio

n as

to

votin

g is

giv

en, t

he p

roxy

/pro

xies

may

vot

e or

abs

tain

at

his

disc

retio

n.

No

.R

eso

luti

on

For

Ag

ain

st

1.To

rec

eive

and

ado

pt t

he D

irect

ors'

Rep

ort

and

Aud

ited

Acc

ount

s fo

r th

e fi n

anci

al y

ear

ende

d 31

Dec

embe

r 20

07 t

oget

her

with

the

Aud

itors

’ Rep

ort

ther

eon.

2.To

app

rove

pay

men

t of

pro

pose

d fi n

al d

ivid

end.

3.To

app

rove

pay

men

t of

Dire

ctor

s’ f

ees.

4.To

re-

elec

t M

r. C

hen

Wei

Pin

g as

a D

irect

or.

5.To

re-

elec

t M

r. C

hew

Chi

n H

ua a

s a

Dire

ctor

.

6.To

re-

appo

int

Mes

srs

BDO

Raf

fl es

as t

he C

ompa

ny’s

Aud

itors

and

to

auth

oris

e th

e D

irect

ors

to fi

x th

eir

rem

uner

atio

n.

7.A

utho

rity

to a

llot

and

issu

e sh

ares

.

8.A

utho

rity

to g

rant

opt

ions

and

iss

ue s

hare

s un

der

the

MID

AS

Empl

oyee

Sha

re O

ptio

n Sc

hem

e.

Sign

ed t

his

d

ay o

f

200

8

Tota

l No

. of

Shar

es in

:N

o. o

f Sh

ares

1) C

DP

Regi

ster

2) R

egis

ter

of M

embe

rs Si

gnat

ure(

s) o

f M

embe

r(s)

/Com

mon

Sea

l

No

tes:

1. A

mem

ber of the Com

pany entitled to attend and vote at a meeting of the C

ompany is entitled to appoint one or tw

o proxies to attend and vote in his stead. Such proxy need not be a m

ember of the C

ompany.

2. W

here a mem

ber appoints two proxies, he m

ust specify the proportion of his shareholding to be represented by each proxy.

3. The instrum

ent appointing a proxy must be signed by the appointer or his duly authorised attorney or if the appointer is a corporation,

it must be executed either under its com

mon seal or signed by its attorney or a duly authorised offi cer of the corporation.

4. A

corporation which is a m

ember m

ay also appoint by resolution of its directors or other governing body an authorised representative or representatives in accordance w

ith its Articles of A

ssociation and Section 179 of the Com

panies Act, C

hapter 50 of Singapore, to attend and vote on its behalf.

5. The instrum

ent appointing a proxy or proxies (together with the pow

er of attorney, if any, under which it is signed or a certifi ed copy

thereof), must be deposited at the registered offi ce of the C

ompany, 2 Shenton W

ay, #04-01 SGX

Centre 1, Singapore 068804 at

least 48 hours before the time fi xed for holding the A

nnual General M

eeting.

6. A

mem

ber should insert the total number of O

rdinary Shares held. If the mem

ber has Ordinary Shares entered against his nam

e in the D

epository Register (as defi ned in Section 130A of the C

ompanies A

ct, Chapter 50 of Singapore), he should insert that num

ber of O

rdinary Shares. If the mem

ber has Ordinary Shares registered in his nam

e in the Register of Mem

bers, he should insert that num

ber of Ordinary Shares. If the m

ember has O

rdinary Shares entered against his name in the D

epository Register as well as

Ordinary Shares registered in his nam

e in the Register of Mem

bers, he should insert the aggregate number of O

rdinary Shares. If no num

ber is inserted, this form of proxy w

ill be deemed to relate to all the O

rdinary Shares held by the mem

ber.

7. The C

ompany shall be entitled to reject this instrum

ent of proxy if it is incomplete, or illegible or w

here the true intentions of the appointor are not ascertainable from

the instructions of the appointor specifi ed in this instrument of proxy. In addition, in the case

of a mem

ber whose O

rdinary Shares are entered in the Depository Register, the C

ompany shall be entitled to reject this instrum

ent of proxy w

hich has been lodged if such mem

ber is not shown to have O

rdinary Shares entered against his name in the D

epository Register at least 48 hours before the tim

e appointed for holding the Annual G

eneral Meeting as certifi ed by The C

entral Depository

(Pte) Limited to the C

ompany.

midas holdings limitedmidas.listedcompany.com/misc/ar2007.pdfmidas holdings limited 1 corporate...

Documents