MIRA INFORM REPORT

Report Date :

29.11.2007

IDENTIFICATION DETAILS

Name :	^YANLORD LAND GROUP LIMITED
Formerly Known as:	^YANLORD LAND GROUP PTE. LTD.
Registered Office :	^9 Temasek Boulevard#36-02 ^Suntec Tower Two
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	13.02.2006
Com. Reg. No.:	200601911K
Legal Form :	Public Limited Company
Line of Business :	Investment Company

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 90,000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear

Subject Company

YANLORD LAND GROUP LIMITED

Line of Business 

PROPERTY DEVELOPMENT

Parent Company

Financial Elements

FY 2006

CONSOLIDATED

Sales : S$ 952,146,000

Networth : S$ 1,063,020,000

Paid-Up Capital : S$ 780,175,000

Net result : S$ 281,071,000

Net Margin(%) : 29.52

Return on Equity(%) : 26.44

Leverage Ratio : 1.02

Based on the with the Accounting and Corporate Regulatory Authority (ACRA) as at 27/11/2007, the paid-up share capital has increased to S$1,241,863,828.57.

Rating

Credit Requested : USD90,000

Credit Rating : MINIMAL RISK

Credit Opinion : RECOMMEND ON USD90,000

COMPANY IDENTIFICATION

^{Subject Company : YANLORD LAND GROUP LIMITED}

^{Former Name : YANLORD LAND GROUP PTE. LTD.}

^{Business Address : 9 TEMASEK BOULEVARD#36-02 SUNTEC TOWER TWO}

^{Town : SINGAPORE}

^{Postcode : 038989}

^{County : -}

^{Country : Singapore}

^{Telephone : 6336 2922}

^{Fax : 6238 6256}

^{ROC Number : 200601911K}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{YANLORD LAND GROUP PTE. LTD.}

^{DATE OF CHANGE OF NAME: 11/05/2006}

SUMMARY

^{All amounts in this report are in: SGD unless otherwise stated}

^{Legal Form : Pub Ltd Co}

^{Date Inc. : 13/02/2006}

^{Previous Legal Form : Pte Ltd}

^{Summary year : 31/12/2006}

^{Sales : 952,146,000}

^{Networth : 1,063,020,000}

^{Capital : -}

^{Paid-Up Capital : 780,175,000}

^{Employees : 11}

^{Net result : 281,071,000}

^{Share value : -}

^{BASED ON ACRA'S RECORD AS AT 27/11/2007}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 1,825,814,476 SGD 1,241,863,828.57}

^{PAID-UP ORDINARY - SGD 1,241,863,828.57}

^{AUDITOR: DELOITTE & TOUCHE}

REFERENCES

^{Credit Requested : USD90, 000}

^{Credit Opinion : RECOMMEND ON USD90, 000}

^{Credit Rating : MINIMAL RISK}

^{Litigation : No}

^{Company status : TRADING}

^{Started : 13/02/2006}

PRINCIPAL(S)

^{LT. GENERAL (RET) NG JUI PING S0007233H Director}

DIRECTOR(S)

^{HONG ZHI HUA G03520827 Director}

^{Appointed on: 20/09/2006}

^{Street : RM 1081, NO. 39 888 NEW WATERGATE ROAD JINGAN ZONE}

^{Town : SHANGHAI}

^{Postcode : 200041}

^{Country : China}

^{CHAN YIU LING HA0350918 Director}

^{Appointed on: 11/05/2006}

^{Street : FLAT E, 7/F, BLOCK 5 METRO CITY PLASE II TSEUNG KWAN O}

^{Town : NEW TERRITORIES}

^{Postcode :}

^{Country : Hong Kong}

^{LT. GENERAL (RET) NG JUI PING S0007233H Director}

^{Appointed on: 20/09/2006}

^{Street : 1 DUNSFOLD DRIVE BRADDELL HEIGHTS ESTATE}

^{Town : SINGAPORE}

^{Postcode : 359363}

^{Country : Singapore}

^{NG SER MIANG S0074251A Director}

^{Appointed on: 11/05/2006}

^{Street : 4 CAMDEN PARK CAMDEN PARK}

^{Town : SINGAPORE}

^{Postcode : 299794}

^{Country : Singapore}

^{SEAH LIM SIANG RONALD S0146274A Director}

^{Appointed on: 11/05/2006}

^{Street : 11 THOMSON HILL THOMSON HILLS}

^{Town : SINGAPORE}

^{Postcode : 574789}

^{Country : Singapore}

^{ZHONG SHENG JIAN S2593485G Director}

^{Appointed on: 13/02/2006}

^{Street : 3 BINJAI HILL BINJAI PARK}

^{Town : SINGAPORE}

^{Postcode : 589920}

^{Country : Singapore}

^{TAN SHOOK YNG S7018920H Company Secretary}

^{Appointed on: 01/07/2006}

^{Street : 27 BENCOOLEN STREET #03-29 BENCOOLEN HOUSE}

^{Town : SINGAPORE}

^{Postcode : 189620}

^{Country : Singapore}

^{NG SHIN EIN S7412592A Director}

^{Appointed on: 11/05/2006}

^{Street : 7A HOLLAND HILL #02-09}

^{Town : SINGAPORE}

^{Postcode : 278732}

^{Country : Singapore}

^{ZHONG SILIANG S7871148E Director}

^{Appointed on: 11/05/2006}

^{Street : 130 TANJONG RHU ROAD #07-09}

^{Town : SINGAPORE}

^{Postcode : 436918}

^{Country : Singapore}

ACTIVITY (IES)

^{INVESTMENT COMPANIES Code12095}

^{HOLDING COMPANIES Code11320}

^{BASED ON ACRA'S RECORD AS AT 27/11/2007}

^{1) OTHER INVESTMENT HOLDING COMPANIES}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{No Bankers Information In Our Database}

SHAREHOLDERS(S)

^{HL BANK NOMINEES (S) PTE LTD 129,037,100 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{DBS NOMINEES PTE LTD 106,255,300 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{CITIBANK NOMINEES SINGAPORE PTE LTD 84,426,200 Company}

^{Street : 0000}

^{Town : SINGAPORE}

^{Postcode : 0000}

^{Country : Singapore}

^{INVESTOR GROWTH CO., LIMITED 60,000 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{HSBC (SINGAPORE) NOMINEES PTE LTD 41,216,000 Company}

^{Street : 10 COLLYER QUAY #02-02 OCEAN BUILDING}

^{Town : SINGAPORE}

^{Postcode : 049315}

^{Country : Singapore}

^{DBSN SERVICES PTE LTD 40,415,000 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{RAFFLES NOMINEES PTE LTD 33,794,000 Company}

^{Street : 000}

^{Town : 000}

^{Postcode : 000}

^{Country : Singapore}

^{MORGAN STANLEY ASIA (SINGAPORE) 31,687,515 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{BNP PARIBAS NOMINEES SINGAPORE PTE 12,204,000 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{UOB KAY HIAN PTE LTD 7,540,000 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{DB NOMINEES (S) PTE LTD 7,376,500 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{UNITED OVERSEAS BANK NOMINEES [PTE] 7,330,000 Company}

^{Street : 1 BONHAM STREET 15-00 U O B BUILDING}

^{Town : SINGAPORE}

^{Postcode : 049782}

^{Country : Singapore}

^{DBS VICKERS SECURITIES (S) PTE LTD 7,306,000 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{CHU YI BIN 5,000,000 Private Person}

^{Street :}

^{Town : SINGAPORE}

^{Postcode :}

^{Country : Singapore}

^{WEI LIJING 4,140,000 Private Person}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{BILLION BONUS GAIN LIMITED 3,000,000 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{ARANDA INVESTMENTS PTE LTD 2,382,000 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

^{CIMB-GK SECURITIES PTE LTD 2,109,000 Company}

^{Street :}

^{Town : SINGAPORE}

^{Postcode :}

^{Country : Singapore}

^{ING NOMINEES (SINGAPORE) PTE LTD 1,966,000 Company}

^{Street : 50 RAFFLES PALCE#34-01/06 SHELL TOWER}

^{Town : SINGAPORE}

^{Postcode : 048623}

^{Country : Singapore}

^{OCBC SECURITIES PRIVATE LTD 1,800,000 Company}

^{Street :}

^{Town :}

^{Postcode :}

^{Country : Singapore}

SUBSIDIARY(IES)

^{YANLORD LAND PTE LTD}

^Singapore

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

^{All amounts in this report are in: SGD}

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 02/05/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS}

^{Preliminary Exp 6,649,000 44,378,000}

^{Tangible Fixed Assets: 26,608,000 24,537,000}

^{Investments 353,770,000 360,269,000}

^{Total Fixed Assets: 387,027,000 429,184,000}

^{Inventories: 505,000 461,000}

^{Receivables: 558,000 565,000}

^{Cash,Banks, Securitis: 624,839,000 123,348,000}

^{Other current assets: 1,137,430,000 1,093,373,000}

^{Total Current Assets: 1,763,332,000 1,217,747,000}

^{TOTAL ASSETS: 2,150,359,000 1,646,931,000}

^{--- LIABILITIES}

^{Equity capital: 780,175,000 144,328,000}

^{Reserves: 129,667,000 388,991,000}

^{Other: 153,178,000 108,302,000}

^{Total Equity: 1,063,020,000 641,621,000}

^{Long Term Loans: 349,396,000 136,597,000}

^{L/T deffered taxes: 17,412,000 -}

^{Other long term Liab.: 91,846,000 -}

^{Total L/T Liabilities: 458,654,000 136,597,000}

^{Trade Creditors: 162,685,000 143,683,000}

^{Prepay. & Def. charges: 1,942,000 430,000}

^{Advanced payments: 254,430,000 387,146,000}

^{Due to Bank: 78,124,000 181,953,000}

^{Provisions: 9,701,000 26,991,000}

^{Other Short term Liab.: 121,803,000 128,510,000}

^{Total short term Liab.: 628,685,000 868,713,000}

^{TOTAL LIABILITIES: 1,087,339,000 1,005,310,000}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 952,146,000 778,358,000}

^{Purchases,Sces & Other Goods: 576,021,000 513,503,000}

^{Gross Profit: 376,125,000 264,855,000}

^{NET RESULT BEFORE TAX: 390,083,000 233,929,000}

^{Tax : 109,012,000 48,594,000}

^{Net income/loss year: 281,071,000 185,335,000}

^{Interest Paid: 1,008,000 3,270,000}

^{Depreciation: 2,541,000 2,588,000}

^{Dividends: 62,800,000 168,440,000}

^{Directors Emoluments: 605,000 -}

^{Wages and Salaries: 19,736,000 13,954,000}

^{Financial Income: 6,279,000 2,596,000}

RATIOS

^{31/12/2006 31/12/2005}

^{Turnover per employee: 86558727.27 70759818.18}

^{Net result / Turnover(%): 0.30 0.24}

^{Net Margin(%): 29.52 23.81}

^{Return on Equity(%): 26.44 28.89}

^{Return on Assets(%): 13.07 11.25}

^{Dividends Coverage: 4.48 1.10}

^{Net Working capital: 1134647000.00 349034000.00}

^{Cash Ratio: 0.99 0.14}

^{Quick Ratio: 0.99 0.14}

^{Current ratio: 2.80 1.40}

^{Receivables Turnover: 0.21 0.26}

^{Leverage Ratio: 1.02 1.57}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Dividends Coverage : Net income loss year/Dividends}

^{Net Working capital : Total current assets - Total short term liabilities}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE GROUP WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 65.68% FROM S$641,621,000 IN FY 2005 TO S$1,063,020,000 IN FY 2006.THIS WAS DUE TO THE SUBSTANTIAL INCREASE IN THE PAID UP SHARE CAPITAL FROM S$144,328,000 TO S$780,175,000.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY ADVANCED PAYMENTS WHICH MADE UP 40.47% (2005: 44.57%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$254,430,000 (2005: S$387,146,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-ADVANCES RECEIVED FROM BUYERS - 2006: S$254,430,000}

^{(2005: S$387,146,000)}

^{IN THE LONG-TERM, SUBJECT WAS LARGELY FINANCED BY LONG-TERM LOANS WHICH MADE UP 76.18% (2005: 100%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$349,396,000 (2005: S$136,597,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-BANK LOANS DUE AFTER ONE YEAR - 2006: S$349,396,000}

^{(2005: S$136,597,000)}

^{AMOUNT DUE TO BANKS OF S$78,124,000 (2005: S$181,953,000) CONSISTED OF:}

^{-BANK LOANS DUE WITHIN ONE YEAR - 2006: S$78,124,000}

^{(2005: S$181,953,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 1.57 TIMES TO 1.02 TIMES AS A RESULT OF A DECLINE IN TOTAL LIABILITIES AND A RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 2.80 TIMES, UP FROM 1.40 TIMES AND QUICK RATIO IMPROVED TO 0.99 TIMES FROM 0.14 TIMES IN FY 2005.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 2.25 TIMES FROM S$349,034,000 IN FY 2005 TO S$1,134,647,000.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH ON HAND - 2006: S$484,000 (2005: S$1,452,000)}

^{-CASH AT BANK - 2006: S$621,753,000 (2005: S$113,690,000)}

^{-PLEDGED BANK DEPOSITS - 2006: S$2,602,000 (2005: S$8,206,000)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 22.33% FROM S$778,358,000 IN FY 2005 TO S$952,146,000 AND NET PROFIT ROSE BY 51.66% TO S$281,071,000 (2005: S$185,335,000). HENCE, NET MARGIN ROSE TO 29.52% (2005: 23.81%).}

^REVENUE:

^{-GROSS INCOME FROM SALE OF PROPERTIES IN PRC}

^{- 2006: S$1,052,087,000 (2005: S$813,780,000)}

^{-LESS: BUSINESS TAX AND LAND APPRECIATION TAX}

^{- 2006: S$115,147,000 (2005: S$45,292,000)}

^{-NET INCOME FROM SALES OF PROPERTIES IN PRC}

^{- 2006: S$936,940,000 (2005: S$768,488,000)}

^{-PROPERTY MANAGEMENT FEE INCOME}

^{- 2006: S$9,696,000 (2005: S$8,412,000)}

^{-LESS: BUSINESS TAX}

^{- 2006: S$760,000 (2005: S$572,000)}

^{-NET PROPERTY MANAGEMENT FEE INCOME}

^{- 2006: S$8,936,000 (2005: S$7,840,000)}

^{-OTHER SERVICE INCOME}

^{- 2006: S$6,545,000 (2005: S$2,110,000)}

^{-LESS: BUSINESS TAX}

^{- 2006: S$275,000 (2005: S$80,000)}

^{-NET OTHER SERVICE INCOME}

^{- 2006: S$6,270,000 (2005: S$2,030,000)}

^{-TOTAL - 2006: S$952,146,000 (2005: S$778,358,000)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT S$1,008,000 IN FY 2006 (2005:S$3,270,000).}

^{AVERAGE COLLECTION PERIOD HAS SHORTENED FROM 0.26 DAYS TO 0.21 DAYS. A SHORTER AVERAGE COLLECTION PERIOD POSES LESSER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY BE AFFECTED IF TRADE RECEIVABLES ARE NON FORTHCOMING.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-DEFERRED TAX ASSET - 2006: S$6,158,000 (2005: S$44,378,000)}

^{-LONG-TERM RECEIVABLE - 2006: S$491,000 (2005: -)}

NOTES TO THE FINANCIAL STATEMENTS

^{BANK LOANS}

^{THE BANK LOANS ARE REPAYABLE AS FOLLOWS:}

^{ON DEMAND OR WITHIN ONE YEAR - 2006: S$78,124,000 (2005: S$181,953,000)}

^{MORE THAN ONE YEAR BUT NOT EXCEEDING TWO YEARS - 2006: S$74,590,000 (2005: S$51,800,000)}

^{MORE THAN TWO YEARS BUT NOT EXCEEDING FIVE YEARS - 2006: S$274,806,000 (2005: S$83,836,000)}

^{MORE THAN FIVE YEARS - 2006: - (2005: -)}

^{LESS: AMOUNT DUE FOR SETTLEMENT WITHIN 12 MONTHS (SHOWN UNDER CURRENT}

^{LIABILITIES - 2006: S$78,124,000 (2005: S$181,953,000)}

^{AMOUNT DUE FOR SETTLEMENT AFTER 12 MONTHS - 2006: S$349,396,000 (2005: S$136,597,000)}

^{SECURED - CURRENT BANK LOANS - 2006: S$52,606,000 (2005: S$127,086,000)}

^{SECURED - NON-CURRENT BANK LOANS - 2006: S$319,953,000 (2005: S$128,278,000)}

^{TOTAL - 2006: S$372,559,000 (2005: S$255,364,000)}

^{UNSECURED - 2006: S$54,961,000 (2005: S$63,186,000)}

^{TOTAL - 2006: S$427,520,000 (2005: S$318,550,000)}

^{THE ABOVE SECURED BANK LOANS ARE PLEDGED BY THE FOLLOWING:}

^{PROPERTIES UNDER DEVELOPMENT FOR SALES - 2006: S$570,035,000}

^{(2005: S$657,000,000)INVESTMENT PROPERTIES - 2006: S$18,659,000 (2005: -)}

^{BANK DEPOSITS - 2006: - (2005: S$8,200,000)}

^{PERSONAL GUARANTEE BY MR ZHANG AND A DIRECTOR OF A SUBSIDIARY - 2006: - (2005: S$2,000,000)}

^{THE GROUP'S BANK LOANS THAT ARE NOT DENOMINATED IN THE FUNCTIONAL CURRENCIES OF THE RESPECTIVE ENTITIES ARE AS FOLLOWS:}

^{SINGAPORE DOLLARS - 2006: - (2005: S$2,036,000)}

^{LONG TERM BANK LOAN AMOUNTING TO $NIL (2005: S$2.0 MILLION) BEAR FLOATING INTEREST RATE OF 5.50% (2005: 3.4% TO 4.8%) WHICH IS 1.5% PLUS BUSINESS COST FUND RATE OF THE BANK AND IS RE-PRICED ON A QUARTERLY BASIS.}

^{THE OTHER BANK LOANS WHICH ARE FOR THE PURPOSE OF PROPERTY DEVELOPMENT, BEAR FIXED INTEREST RATE AND THE EFFECTIVE INTEREST RATE WAS 5.96% (2005: 4.75%) PER ANNUM.}

^{THE CARRYING AMOUNTS OF BANK LOANS APPROXIMATE THEIR FAIR VALUES DUE TO EITHER THE RELATIVELY SHORT TERM MATURITY OF THIS BORROWINGS OR THE INTEREST RATES APPROXIMATE MARKET RATES PREVAILING AT BALANCE SHEET DATE.}

^{DURING THE CURRENT FINANCIAL YEAR, CERTAIN UNUTILISED BANK FACILITIES ARE SECURED BY RELATED PARTIES AND BANK DEPOSITS.}

ACQUISITION OF SUBSIDIARIES

^{ON 30/04/2006, THE GROUP INCREASED ITS EQUITY INTERESTS IN ASSOCIATES}

^{- SUZHOU ZHONGHUI PROPERTY DEVELOPMENT CO., LTD. ABD SUZHOU YINHAN PROPERTY DEVELOPMENT CO., LTD TO 100% FOR A TOTAL CONSIDEATION OF S$73,353,924. SUBSEQUENT TO THE ACQUISITION, THE GROUP FURTHER INCREASED CAPITAL CONTRIBUTION OF S$3,069,540 AND S$17,053,000 RESPECTIVELY IN SUZHOU ZHONGHUI PROPERTY DEVELOPMENT CO., LTD AND}

^{SUZHOU YINHAN PROPERTY DEVELOPMENT CO., LTD}

^CONTINGENCY

^{THE GROUP PROVIDES GUARANTEES OF APPROXIMATELY S$199.1 MILLION AT 31/12/2006 (2005: S$137.9 MILLION) TO BANKS IN FAVOUR OF ITS CUSTOMERS IN RESPECT OF THE MORTGAGE LOANS PROVIDED BY THE BANKS TO CUSTOMERS FOR THE PURCHASE OF THE GROUP'S DEVELOPED PROPERTIES. THESE GUARANTEES PROVIDED BY THE GROUP TO THE BANKS WOULD BE RELEASED UPON RECEIVING THE BUILDING OWNERSHIP CERTIFICATE OF THE RESPECTIVE PROPERTY BY THE BANKS FROM THE CUSTOMERS AS A PLEDGE FOR SECURITY TO THE MORTGAGE LOAN GRANTED.}

^{THE MANAGEMENT IS OF THE VIEW THAT THE FAIR VALUES OF THE FINANCIAL GUARANTEES PROVIDED BY THE GROUP ARE NOT SIGNIFICANT.}

^{SUBSEQUENT EVENTS}

^{A) ON 06/02/2007, THE COMPANY ISSUED 150 MILLION NEW ORDINARY SHARES}

^{AT S$2.07 EACH TOTALLING S$310.5 MILLION AND S$47.25 MILLION CONVERTIBLE DUE IN 2012. THE TOTAL NET PROCEEDS, AFTER DEDUCTING UNDERWRITING DISCOUNTS, COMMISSION AND ESTIMATED OFFERING EXPENSES, IS S$760.7 MILLION}

^{THE NOTES WILL BE CONVERTIBLE INTO ORDINARY SHARES AT A CONVERSION PRICE OF S$2.7531 PER SHARE, SUBJECT TO ADJUSTMENT FOR SPECIFIED DILUTIVE EVENTS, AND WILL ACCRUE AT INTEREST AT 4.00% PER ANNUM, COMPOUNDED SEMI-ANNUALLY.}

^{B) ON 12/02/2007, A SUBSIDIARY OF THE COMPANY, YANLORD LAND PTE. LTD. ACQUIRED AN ADDITIONAL SHAREHOLDING INTEREST OF 35% IN YANLORD REAL ESTATE PTE. LTD. ("YRE") FOR A TOTAL CASH CONSIDERATION OF APPROXIMATELY S$65.3 MILLION (RMB330 MILLION) FROM THE MINORITY SHAREHOLDER OF YRE. THE CASH CONSIDERATION APPROXIMATES TO THE FAIR VALUE OF THE NET ASSET OF THE ADDITIONAL INTEREST IN YRE AT THE DATE OF ACQUISITION.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 13/02/2006 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "YANLORD LAND GROUP PTE. LTD.".}

^{SUBSEQUENTLY, ON 11/05/2006, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "YANLORD LAND GROUP LIMITED" AND IS TRADING AS A PUBLIC COMPANY LIMITED BY SHARES.}

^{AS AT 27/11/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 1,825,814,476 SHARES OF A VALUE OF S$1,241,863,828.57.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) OTHER INVESTMENT HOLDING COMPANIES}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF AN INVESTMENT HOLDING COMPANY.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{BACKGROUND OF THE SUBJECT:}

^LISTINGS

^{* LISTED ON 22/06/2006 ON SGX MAINBOARD}

^{THE COMPANY WAS INCORPORATED IN SINGAPORE ON 13/02/2006 UNDER THE NAME YANLORD LAND GROUP PTE LTD AND AOPTED ITS PRESENT NAME ON 11/05/2006.}

^{YANLORD LAND GROUP LIMITED IS A REAL ESTATE DEVELOPER BASED IN CHINA THAT FOCUSES ON DEVELOPING HIGH-END RESIDENTIAL PROPERTY PROJECTS IN SELECTED KEY AND HIGH-GROWTH CITIES IN CHINA, SUCH AS SHANGHAI AND NANJING.}

^{SINCE ITS ESTABLISHMENT IN 1993, YANLORD LAND HAS GROWN FROM A START- UP PROPERTY DEVELOPER WITH ONE DEVELOPMENT PROJECT COMPRISING 53,049 SQ M OF GROSS FLOOR AREA TO BECOME ONE OF THE MAJOR PLAYERS IN THE HIGH-END PROPERTY DEVELOPMENT MARKET IN SEVEN CITIES IN CHINA.}

^{YANLORD LAND HAS EXPANDED THE GEOGRAPHICAL REACH OF ITS RESIDENTIAL PROPERTY DEVELOPMENT BUSINESS INTO CHENGDU, TIANJIN, ZHUHAI, SUZHOU AND GUIYANG. THE COMPANY'S RESIDENTIAL PROPERTY DEVELOPMENTS ARE TYPICALLY LARGE-SCALE AND MULTI-PHASED PROJECTS.}

^{THE GROUP HAS ALSO RECENTLY BEGUN THE DEVELOPMENT OF HIGH-GRADE COMMERCIAL PROPERTIES, SUCH AS OFFICE BUILDINGS, RETAIL SPACE AND SERVICED APARTMENTS, FOR SALE AND LEASE. IN ADDITION, THE GROUP ALSO PROVIDES PROPERTY MANAGEMENT SERVICES PRIMARILY FOR THE PROJECTS IT DEVELOPS.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* PROPERTY DEVELOPMENT}

^{NEWS: YANLORD EXTENDS PRESENCE IN SHANGHAI THROUGH ACQUISITION OF PRIME RESIDENTIAL SITE IN THE RAPIDLY EMERGING NEW JIANGWAN}

^{URBAN AREA}

^"EXTRACTS"

^{-SOURCE: YANLORD WEBSITE}

^{DATE: 09/11/2007}

^{SINGAPORE/HONG KONG - YANLORD LAND GROUP LIMITED ("YANLORD", AND TOGETHER WITH ITS SUBSIDIARIES, THE "GROUP") ANNOUNCED TODAY THAT IT HAD, THROUGH ITS SUBSIDIARY, SHANGHAI YANLORD PROPERTY CO., LTD, SUCCESSFULLY ACQUIRED A 65,050 SQUARE METRE ("SQM") GROSS FLOOR AREA ("GFA") PRIME SITE IN NEW JIANGWAN URBAN AREA, YANGPU DISTRICT,}

^{SHANGHAI CITY, PEOPLE'S REPUBLIC OF CHINA ("PRC"), FOR RMB 1.3 BILLION DURING A GOVERNMENT TENDER HELD ON 8TH NOVEMBER 2007.}

^{BORDERED BY JIANGWAN CITY ROAD TO THE EAST, GUOXIAO ROAD TO THE SOUTH, ZHENGHE ROAD TO THE WEST AND YINGHANG ROAD TO THE NORTH , THE NEWLY ACQUIRED PROJECT OVERLOOKS THE HUANGPU RIVER AND IS LOCATED IN THE VICINITY OF NEW JIANGWAN PARK, WUJIACHANG RETAIL SHOPPING COMPLEXES, AND RENOWNED TERTIARY EDUCATION INSTITUTIONS SUCH AS FUDAN UNIVERSITY, TONGJI UNIVERSITY (LUDONG CAMPUS) AND SHANGHAI FINANCE UNIVERSITY. WITH THE NEW JIANGWAN STATION OF SHANGHAI METRO LINE 10 - TO BE OPERATIONAL BY 2010 - WITHIN WALKING DISTANCE, THIS LOCATION IN YANGPU DISTRICT IS FAST BECOMING A HIGH-END RESIDENTIAL ZONE WITHIN YANGPU DISTRICT OF SHANGHAI.}

^{THE ACQUIRED SITE AREA OF APPROXIMATELY 54,208 SQM WITH A TOTAL PLANNED GFA OF APPROXIMATELY 65,050 SQM WAS ACQUIRED AT A PRICE OF APPROXIMATELY RMB 20,000 PER SQM OF GFA. YANLORD PLANS TO DEVELOP THIS SITE INTO AN EXCLUSIVE HIGH-END RESIDENTIAL ENCLAVE COMPRISING OF HIGH-RISE FULLY FITTED APARTMENTS.}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 29/11/2007, THE FOLLOWING WAS GATHERED:}

^{THE SUBJECT IS PRIMARILY INVOLVED IN PROPERTY DEVELOPMENT IN CHINA. THE SUBJECT IS INVOLVED IN ONE PROPERTY DEVELOPMENT PROJECT IN SINGAPORE KNOWN AS "THE MACKENZIE".}

^{NUMBER OF EMPLOYEES:}

^{* 2007: 11}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 29/11/2007.}

^{THE COMPANY IS A SUBSIDIARY OF YANLORD HOLDINGS PTE. LTD., INCORPORATED IN THE REPUBLIC OF SINGAPORE, WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE)}

^{* GROUP - 2006: NOT AVAILABLE (2005: NOT AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{9 TEMASEK BOULEVARD}

^{#36-02 SUNTEC TOWER TWO}

^{SINGAPORE 038989}

^{- RENTED PREMISE}

^{- OWNED BY PALOVALE PTE LTD}

^{- DATE OF CHANGE OF ADDRESS: 13/02/2006}

^WEBSITE:

^{http://www.yanlordland.com}

^EMAIL:

^-

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THE REPORT ARE:}

^{1) HONG ZHI HUA, A CHINESE}

^{- BASED IN CHINA.}

^{2) CHAN YIU LING, A HONG KONGER}

^{- BASED IN HONG KONG.}

^{3) LT. GENERAL (RET) NG JUI PING, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{UNISTEEL TECHNOLOGY LIMITED}

^{HORIZON TECHNOLOGIES INTERNATIONAL PTE LTD}

^{HORIZONEDUCOM PTE LTD}

^{HORIZON ITECH PTE LTD}

^{GLOBAL VOICE GROUP LIMITED}

^{SMP SOLUTIONS PTE LTD}

^{HORIZON KNOWLEDGE SOLUTIONS PTE LTD}

^{4) NG SER MIANG, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{LION TECK CHIANG LIMITED}

^{SINGAPORE SHUTTLE BUS PL}

^{ORCHID MARINE SERVICES PL}

^{CAM ASSOCIATES PTE LTD}

^{S M INVESTORS (PTE.) LTD.}

^{TRANS-ISLAND BUS SERVICES LTD}

^{MERIT INVESTMENTS PL}

^{INTERNATIONAL FACTORS SINGAPORE LTD}

^{TIBS INVESTMENT PL}

^{TIBS TRADING PL}

^{TIBS TAXIS PL}

^{SMRT ROAD HOLDINGS LTD.}

^{TRANSPAC INDUSTRIAL HOLDINGS LTD}

^{TIBS CHINA AUTOMOTIVE INDUSTRIES INVESTMENT PL}

^{TIBS CHINA MOTOR INVESTMENT PL}

^{PBP INVESTMENT PL}

^{TONG TAR BUS SERVICE PL}

^{HO'S TRANSPORT PL}

^{CHIN LIN PL}

^{OMS CONTAINERS PL}

^{THONG WOON CO PL}

^{TRANS-ISLAND MANAGEMENT & ENG SERVICES PL}

^{NOBLESSE SERVICES MANAGEMENT PL}

^{XUAN MIN INVESTMENT PL}

^{JEVONA INVESTMENT PL}

^{ORCHID SHIPPING HOLDINGS PL}

^{TIBS LEASING PTE LTD}

^{TIBS CAPITAL PTE LTD}

^{OMS DISTRIPARK PTE LTD}

^{5) SEAH LIM SIANG RONALD, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{SNP CORPORATION LTD}

^{AIG GLOBAL INVESTMENT CORPORATION (SINGAPORE) LTD}

^{6) ZHONG SHENG JIAN, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{YANLORD LAND PTE LTD}

^{7) NG SHIN EIN, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

^{8) ZHONG SILIANG, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.1% IN QUARTER 1 OF 2007 AFTER A 6.6% GROWTH IN QUARTER 4 OF 2006. THE GROWTH MOMENTUM EASED SLIGHTLY TO 7.6% IN 1Q 2007, COMPARED WITH 7.9% A QUARTER EARLIER. GROWTH IN QUARTER 1 WAS LED BY THE FINANCIAL SERVICES AND CONSTRUCTION SECTORS. THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE A MODERATION IN GROWTH.

THE FINANCIAL SERVICES SECTOR SIGNIFICANTLY INCREASED BY 13% IN 1Q 2007 ON THE HEELS OF THE 11% GROWTH A QUARTER AGO. THE STRONG PERFORMANCE WAS ACROSS ALL MAJOR FINANCIAL SEGMENTS, PARTICULARLY IN THE CAPITAL AND MONEY MARKETS. FUND MANAGEMENT ACTIVITIES REMAINED BOUYANT, IN LINE WITH THE CONTINUED STRENGTH IN ECONOMIC CLIMATE. SIMILARLY, BANKS SAW STRONG GROWTH, BOUYED BY SUSTAINED RESILIENCE IN THE ASIA DOLLAR MARKET AS WELL AS A STEADY INCREASE IN DOMESTIC LENDING ACTIVITY.

THE CONSTRUCTION SECTOR GREW BY 9.7% IN 1Q 2007, ITS STRONGEST GROWTH IN 9 YEARS. CERTIFIED PAYMENTS INCREASE BY 9.5% IN 1Q 2007, SUPPORTED BY STRONG GROWTH IN THE PRIVATE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL SEGMENTS AS WELL AS PUBLIC RESIDENTIAL SEGMENT. HOWEVER, CONTRACTS AWARDED FELL BY 11% IN 1Q 2007, DUE MAINLY TO THE DROP IN THE PRIVATE COMMERCIAL AND PUBLIC INSTITUTIONAL SEGMENTS.

MANUFACTURING SECTOR INCREASED BY 4.3% IN 1Q 2007, DOWN FROM 7.7% IN THE PREVIOUS QUARTER. BOTH BIOMEDICAL MANUFACTURING (-5.0%) AND PRECISION ENGINEERING (-0.7%) CLUSTERS SAW LOWER PRODUCTION DURING THE QUARTER. THE ELECTRONICS CLUSTER, HOWEVER, RECOVERED FROM A 4.1% CONTRACTION IN 4Q 2006 TO REGISTER AN INCREASE OF 2.6% IN 1Q 2007. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO EXPAND STRONGLY AT 23%, FOLLOWING A 25% INCREASE IN 4Q 2006.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.7% IN 1Q 2007 AFTER A 6.9 GROWTH IN 4Q 2006. RETAIL SALES GROWTH EASED FROM 7.9% IN THE PREVIOUS QUARTER TO 6.1% IN 1Q 2007, MAINLY DUE TO A DECELERATION IN MOTOR VEHICLES SALES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.9%, UP FROM 4.2% IN 4Q 2006. IN THE WHOLESALE SEGMENT, GROWTH OF NON-OIL RE-EXPORTS REMAINED FIRM AT 5.9%, SLOWER THAN 6.3% IN 4Q 2006.

THE TRANSPORT AND STORAGE SECTOR GREW 4.4% IN 1Q 2007, UP FROM 4.0% A QUARTER EARLIER. THE AIR SEGMENT SAW A SLOWDOWN DUE TO A MODERATION IN AIR PASSENGER TRAFFIC GROWTH AND A DECLINE IN AIR CARGO. STRONGER ACTIVITY WAS RECORDED IN THE SEA SEGMENT ON THE BACK OF BETTER PERFORMANCE IN SEA CARGO HANDLED AND CONTAINER THROUGHPUT.

THE HOTELS AND RESTAURANTS SECTOR REGISTERED A SLOWER GROWTH OF 4.7% IN 1Q 2007, DOWN FROM 6.1% 4Q 2006. VISITOR ARRIVALS GREW AT A MORE MODEST PACE OF 4.1% COMPARED TO 8.4% IN THE PREVIOUS QUARTER. THE INCREASE IN HOTEL ROOM REVENUE MODERATED FROM THE 21% GAIN IN 4Q 2006 TO 14% IN 1Q 2007. HOWEVER, THE AVERAGE OCCUPANCY RATE OF HOTELS REMAINED HIGH AT 87%, A 4.3% POINTS INCREASE OVER THE CORRESPONDING PERIOD LAST YEAR.

THE INFORMATION AND COMMUNICATIONS SECTOR GREW 6.6% IN 1Q 2007, UP FROM 6.0% IN THE PREVIOUS QUARTER. WHILE THE IT SEGMENT SAW SOME MODERATION IN ACTIVITIES, THE TELECOMMUNICATIONS SEGMENT PERFORMED BETTER. INTERNATIONAL TELEPHONE CALL DURATION WENT UP SHARPLY BY 19%, UP FROM 11% IN 4Q 2006. GROWTH IN THE NUMBER OF MOBILE SUBSCRIBERS AND BROADBAND SUBSCRIBERS ALSO REMAINED STRONG DURING THE QUARTER.

BUSINESS SERVICES SECTOR EXPANDED BY 6.6% IN 1Q 2007, BETTER THAN THE 5.4% POSTED IN 4Q 2006. ROBUST PERFORMANCE WAS SEEN IN THE REAL ESTATE SEGMENT ON THE BACK OF CONTINUED STRENGTH IN THE LUXURY PROPERTY MARKET. THE SECTOR WAS ALSO WELL SUPPORTED BY THE OTHER SEGMENTS, PARTICULARLY BUSINESS REPRESENTATIVE OFFICES, AND BUSINESS & MANAGEMENT CONSULTANCY ACTIVITIES.

OUTLOOK

THE ECONOMIC OUTLOOK IS GENERALLY POSITIVE BUT SOME DOWNSIDE RISKS REMAIN. THESE INCLUDE A SLOWDOWN IN THE US ECONOMY, VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS AND A DISORDERLY UNWINDING OF GLOBAL UNBALANCES. BARRING THESE UNCERTAINTIES, ECONOMIC GROWTH IS EXPECTED TO REMAIN HEALTHY IN 2007.

BUSINESS SENTIMENTS ARE GENERALLY POSITIVE IN THE FINANCIAL SERVICES INDUSTRY. BANKS AND FINANCE COMPANIES, FUND MANAGEMENT FIRMS AND INSURANCE COMPANIES EXPECT AN IMPROVEMENT IN THE BUSINESS CLIMATE IN THE COMING MONTHS.

AN OVERALL NET WEIGHTED BALANCE OF 61% OF FIRMS IN THE REAL ESTATE INDUSTRY EXPECTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. WITHIN THE INDUSTRY, REAL ESTATE DEVELOPERS AND AGENTS FORESEE BRISK BUSINESS ACTIVITY AHEAD.

MANUFACTURING SECTORS ARE MORE OPTIMISTIC IN THE NEXT 6 MONTHS COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN 7% RECORDED A QUARTER AGO.

WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD AND BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

FIRMS IN THE RETAIL TRADE FORESEE BUSINESS TO BE LESS BRISK. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

WITHIN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS IMPROVED BUSINESS PROSPECTS FOR THE NEXT 6 MONTHS. IN PARTICULAR, FIRMS IN THE WATER TRANSPORT AND SUPPORTING SERVICES EXPECT HIGHER LEVEL OF BUSINESS ACTIVITY.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMING MONTHS REMAINS THE SAME.

FIRMS IN THE INFORMATION AND COMMUNICATION INDUSTRY ANTICIPATES A HIGHER LEVEL OF BUSINESS ACTIVITY, WITH A POSITIVE NET WEIGHTED BALANCE OF 12%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS. THESE INCLUDE FIRM ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNELNEWS ASIA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions