Sunny Tew

APPENDIXpersons if certain financial thresholds (which are based on the value of the transaction as compared with the listed company’s latest audited net tangible assets(“NTA”)) are reached or exceeded. In particular, shareholders’ approval is required for an interested person transaction of a value equal to, or exceeds:(i) 5% of the group’s latest audited NTA; or(ii) 5% of the group’s latest audited NTA, when aggregated with other transactions entered into with the same interested person (as defined below) during thesame financial year. However, a transaction which has been approved by shareholders, or is the subject of aggregation with another transaction that has beenapproved by shareholders, need not be included in any subsequent aggregation.However, the above does not apply to any transaction below S$100,000.d) In relation to the Company, for the purposes of Chapter 9 of the Listing Manual, 5% of the latest audited NTA of the HG Metal Group would be approximately S$5.9million. This is computed based on the latest audited NTA of HG Metal Group for the financial period ended 30 September 2007 of approximately S$117.1 million.For the purposes of this Appendix, the HG Metal Group is defined as the Company and its subsidiaries.e) Chapter 9 of the Listing Manual permits a listed company, however, to seek a general mandate from its shareholders for recurrent transactions of a revenue or tradingnature or those necessary for its day-to-day operations such as the purchase and sale of supplies and materials (but not in respect of the purchase or sale of assets,undertakings or businesses) that may be carried out with the listed company’s interested persons (as defined below).f) Under the Listing Manual:(i)an “entity at risk” means:1) the listed company;2) a subsidiary of the listed company that is not listed on the SGX-ST or an approved exchange; or3) an associated company of the listed company that is not listed on the SGX-ST or an approved exchange, provided that the listed company and/or itssubsidiaries (the “listed group”), or the listed group and its interested person(s), has control over the associated company;HG METAL MANUFACTURING LIMITED ANNUAL REPORT 2007101