MINUTES OF ANNUAL GENERAL MEETINGS

Date: April 5, 2005

It has been brought to our attention that Qian Hu has posted the minutes of its AGM held on 18 March 2005 on MASnet. We find their minutes commendable for the following reasons:

• The 10 page minutes covered well the proceedings of the AGM, including substantive comments and queries by shareholders and the responses by the Board and Management.
• The minutes gave a reader a good sense of the discussions at the meeting. They recorded the concerns and questions raised by shareholders and the candid and informative responses of the Board and Management.
• The minutes were posted promptly on MASnet within 3 business days of the AGM. The Company had earlier – on the same day as the meeting – made an announcement that all resolutions put to the AGM had been duly passed.

SIAS has been strongly advocating that companies should maintain minutes of general meetings that include, in summary, substantive comments and queries by shareholders and the responses by the Board and Management. We would like to commend Qian Hu for recording such detailed minutes and for promptly making them available to all shareholders and any other interested party. It demonstrates respect for shareholders. We would strongly encourage all companies to do likewise.

Qian Hu’s effort is also an excellent example of how a company “should encourage greater shareholder participation at AGMs, and allow shareholders the opportunity to communicate their views on various matters affecting the company” as stipulated by clause 15 of the Code of Corporate Governance. . Many Companies are not complying with this requirement in the Code and often cite the Companies Act for their reluctance to do so. Such an effort deserves strong recognition by SIAS’ Selection Committee for the S’pore Corporate Governance Award

Mr David Gerald J.
President & CEO
Securities Investors Association (Singapore)