The Remuneration Committee was established on 20th February 2006 to determine the remuneration structure of the executive Directors and senior management. Its current members include Ms. Yeung Man Yi, Beryl, Dr. Leung Wai Cheung and Mr. Chow Shek Fai. Ms. Yeung is Chairman of the Remuneration Committee.

The main responsibilities of the Remuneration Committee are as follows:

(a) to decide, with consultation with the Chairman of the Board, where to position the Company relative to others in terms of remuneration level and board composition;

(b) to determine the specific remuneration packages of all executive directors and senior management, including benefits in kind, pension rights and compensation payments;

(c) to make recommendations to the Board on the remuneration of nonexecutive directors;

(d) to review and approve performance-based remuneration by reference to corporate goals and objectives resolved by the Board from time to time;

(e) to review and approve the compensation payable to executive directors and senior management in connection with any loss or termination of their office or appointment; and

(f) to review and approve compensation arrangements relating to dismissal or removal of directors for misconduct.

During the year, the Remuneration Committee continued to adopt the management bonus package mechanism of executive Directors which provides that the aggregate amount of management bonuses payable to all Directors in respect of any financial year of the Company shall not exceed 30 per cent. of the Excess. The “Excess” means the excess amount to be arrived at by deducting HK$35 million from the net profit of the Company (after taxation and minority interests and payment of management bonuses to all directors for the time being of the Company but excluding extraordinary and exceptional items).