Rising Above

NOTES TO FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 200722. INVESTMENT IN SUBSIDIARIESCompany2007 2006$’000 $’000Shares, at cost 75,944 75,944Additional investment 5,438 -Capital contribution in the form of share options issued to employees of subsidiaries 226 -81,608 75,944As at 31 December 2007, the details of the subsidiaries of the Group are as follows:Name of companiesPrincipal activitiesCountry ofincorporationEffective equity interestholding by the Group31 December200731 December2006Held by the Company• Yantai Raffles Offshore Ltd. (b)Offshore and marine projectconstruction and supply ofengineering works and materialsPeople’s Republic ofChina94.38% (a) 91.27% (a)• Yantai Raffles Shipyard Co.,Ltd. (b)Offshore and marine projectconstruction and supply ofengineering works and materialsPeople’s Republic ofChina71.63% 62.95%• YRS Investments Limited (c) Investment holding Hong Kong SAR 100% 100%• YRS Shiplease Pte Ltd (d)Offshore and marine vessel leasingoperator (including chartering)Singapore 100% 100%• Raffles Yacht Limited (e) Construction and sale of mega yachts Hong Kong SAR 100% -Held through YRS Shiplease Pte Ltd• Pelican Waters InvestmentLtd (f)Ownership and chartering of selfunloading bulk carrierBritish Virgin Islands 100% 100%• Asiatic Offshore Limited (f) Investment holding British Virgin Islands 100% 100%• Borneo Offshore Limited (f) Dormant British Virgin Islands 100% 100%• Baratpur Limited (f)Ownership and chartering of semisubmersibledrilling platformBritish Virgin Islands 100% 100%• Coral Offshore Limited (f) Dormant British Virgin Islands 100% 100%74 YANTAI RAFFLES SHIPYARD LIMITED