CMB_1997_Copy2 — Page 10

Report of the Directors (Continued)

MAJOR CUSTOMERS AND SUPPLIERS

For the year ended 30th June, 1997

(a)

(b)

(c)

the aggregate amount of turnover attributable to the Group's five largest customers represented less than 30 per cent of the Group's total turnover;

the aggregate amount of purchases (not including the purchases of items which are of a capital nature) attributable to the Group's five largest suppliers represented approximately 57 per cent by value of the Group's total purchases; and

The amount of purchases attributable to the Group's largest supplier represented approximately 18 per cent by value of the Group's total purchases.

At no time during the year have the directors, their associates or any shareholders of the Company (which to the knowledge of the directors owns more than 5% of the Company's share capital) had any interest in these major customers and suppliers.

SUMMARY OF FINANCIAL DATA

A summary of the Group's financial data for the last five years is shown on page 31.

COMPLIANCE WITH THE CODE OF BEST PRACTICE

The Company has complied throughout the year with the Code of Best Practice as set out by the Stock Exchange of Hong Kong Limited in Appendix 14 to the Listing Rules.

AUDITORS

A resolution for the reappointment of KPMG Peat Marwick as auditors of the Company is to be proposed at the forthcoming ordinary yearly meeting.

Hong Kong, 24th November, 1997

8

By order of the board

NGAN Kit-ling Director

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