Rising Above

DIRECTORS’ REPORTFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 20073. Directors’ interests in shares or debentures (Continued)Name of directorDirect InterestAt the beginning of financial yearor date of appointment At the end of financial yearShare options of the CompanyBrian Chang - -Julian Chang - 2,000,000Chang Yee Meng Malcolm - 1,600,000Michael Lindsay Sharp - 300,000Ang Kong Hua - 50,000Francis James Reidy - 50,000Liu Chee Ming - 50,000Sum Soon Lim - 50,000Except as disclosed in this report, no director who held office at the end of the financial year had interests in shares, shareoptions, warrants or debentures of the Company, or of related corporations, either at the beginning of the financial year, or dateof appointment if later, or at the end of the financial year.Mr Brian Chang, who by virtue of his interest of not less than 20% of the issued capital of the Company, is deemed to have aninterest in the whole of the share capital of the Company’s wholly owned subsidiaries and in the shares held by the Company inthe following subsidiaries that are not wholly owned by the Group.At the beginning of financial yearAt the end of financial yearYantai Raffles Offshore Ltd- Registered and issued capital RMB 234,690,000 RMB 234,690,000Yantai Raffles Shipyard Co., Ltd- Registered and issued capital RMB 125,980,000 RMB 125,980,0004. Directors’ contractual benefitsSince the end of the previous financial year, no director of the Company has received or become entitled to receive a benefit byreason of a contract made by the Company or a related corporation with the director, or with a firm of which the director is amember, or with a company in which the director has a substantial financial interest, except as disclosed in the accompanyingfinancial statements and in this report, and except that certain directors have employment relationship with the Company andhave received remuneration in those capacities.5. Share optionsAt an Extraordinary General Meeting held on 21 June 2006, shareholders approved the Yantai Raffles Executive Share OptionScheme (the “Scheme”) for the granting of non-transferable options that are settled by physical delivery of the ordinary sharesof the Company, to eligible directors, senior executives and employees respectively.The Scheme is operated at the discretion of the Remuneration Committee, subject to a maximum period of 10 years from thedate on which the Scheme was adopted, beyond which is subject to approval of the members by way of ordinary resolutions ingeneral meetings and any relevant authorities which may then be required. The maximum aggregated number of shares whichmay be issued and/or transferred pursuant to all options shall not exceed 10% of the issued share capital of the Company onthe day preceding the date of grant.ANNUAL REPORT 2007 35