Chairman's Message

Extracted from Annual Report 2009

Looking ahead, the Group expects the business environment to remain challenging. We will continue to be vigilant by exercising prudent cost discipline in running our operations while seeking new business opportunities.

Dear Shareholders,

I am pleased to report that despite the global economic downturn, the Group, for the financial year ended 30 June 2009 ("FY 2009"), reported a lower loss of S$2.63 million, as compared to S$5.15 million for FY 2008.

On a year-on-year comparison, loss for the Group decreased by S$2.52 million, largely due to one-off provisions incurred in FY 2008 in respect of project management services.

The loss per share of the Group decreased to 0.60 cents in FY 2009 from 1.29 cents in FY 2008, while the net asset value per share decreased to 3.03 cents as at 30 June 2009, from 3.33 cents as at 30 June 2008.

In November 2008, our former strategic investor, M.E. Development L.L.C. ("MED") exited the Group and ceased to be a substantial shareholder. This has resulted in the termination of project and construction management contracts with MED. With the exit of MED, we faced difficulties in accessing business opportunities in the Middle East.

In January 2009, Germir Group Limited acquired 14.66% interest in the Company, through the subscription of 79.50 million new shares at S$0.05 per share. The net proceeds are intended to fund business growth and investment opportunities.

In accordance with the Singapore Exchange Limited ("SGX") regulations for Catalist-listed companies, we appointed Stamford Corporate Services Pte Ltd, to be our continuing sponsor with effect from 23 March 2009.

Upon expiry of the rental lease, we relocated our corporate office and registered office to Keck Seng Tower.

In July 2009, we acquired 100% interest in Win King Investments Limited, a company incorporated in Hong Kong. It has not carried out any business since its incorporation, other than holding a wholly owned subsidiary in China (the "WFOE"). The objective of the acquisition is to use the WFOE to explore new business opportunities in China. It has a registered capital of Renminbi 10 million (approximately S$2.10 million).

The Group is entering into another interesting phase. In July 2009, Germir Group Limited, has signed a conditional subscription agreement to inject additional funds into the Company. This conditional subscription agreement, subject to approval from the relevant authorities as well as from the shareholders, will provide the Company with additional working capital. The additional funding will enable us to explore new business opportunities in the construction and resources sector.

Looking ahead, the Group expects the business environment to remain challenging. We will continue to be vigilant by exercising prudent cost discipline in running our operations while seeking new business opportunities.

It is my pleasure to place on record, the contributions and services rendered to the Group by Dr. Oussama Al-Dimashki and Mr. Issam Farid Halabi, who have resigned from the Board.

I would like to extend a warm welcome to Mr. Yu Qingyi who joined the Board in January 2009.

I am mindful of the support that our customers, suppliers and business partners have given us. I am also grateful to my fellow Directors for their guidance and contributions in helping the Group to overcome the many challenges over the past years. Hard work and dedication of our management and staff did not go unnoticed. Last but not least, I want to thank all our shareholders for standing with us.

Ms Wang Yuzhu
Non-Executive Chairman