3. Nature of Business

3.1 History, Major Changes and Development

Tanayong Public Company Limited (the “Company”) was established on March
27, 1968 with the initial registered capital of 5,000,000 baht to
operate the property development business. The Company launched its
first property development project “Thana City” on Bangna-Trad Road Km.
14 in 1988. The project consists of single-detached houses, townhouses,
condominiums and vacant land plots.

The Company was listed on the Stock Exchange of Thailand and commenced
first day trading of its securities on March 1, 1991. The Company was
converted from a private limited company into a public limited company
on June 2, 1993 and changed the name from Tanayong Company Limited to
Tanayong Public Company Limited. At the same time, the Company expanded
its business to development of condominiums in the city center, serviced
apartments, office buildings, hotels and an outsized infrastructure
project that required substantial investment capital. The Company was
the initiative operator of the first sky train system in Thailand under
Bangkok Mass Transit System Public Company Limited, which commenced its
services on December 5, 1999.

In 1997, Thailand suffered a severe economic crisis such that the
government had to announce the floating of the Thai baht currency, which
directly affected the private sector particularly business operators
with foreign loans. The floating of the Thai baht currency amplified the
value of existing debt. The Company was also affected by the floating
exchange rate.

During 2002–2006, the Company had gone through a debt restructuring and
business rehabilitation process. After the completion of the business
rehabilitation process, the Central Bankruptcy Court ordered the
termination of the business rehabilitation at the end of the year 2006.

Starting in 2007, the Company resumed its normal business operation with
the management’s vision to enhance business potential in the future. The
Company began to reorganize the Company’s shareholding structure and
management team as well as entered into business alliances with partners
from Dubai, Hong Kong and China who have investments in various
countries around the world to invest in the Company.

During 2007-2008, the Company and companies in the group invested in
properties for future development by acquiring freehold land at Kamala
beach in Phuket, Sukhumvit Rd. in Bangkok, Kanchanaburi and Khao Yai,
and leasehold land in Chiang Mai.

In 2008, the Company launched the first boutique hotel which is managed
by Absolute Hotel Services Co., Ltd., a company in the group under the
name ‘U Chiang Mai’. The Company also signed a contract with the project
owner on a turnkey basis to design and construct a hotel project ‘Four
Points by Sheraton’ in Bangkok.

In 2008, to further enhance efficiency of business management, the
Company and companies in the group implemented the ‘PROMIS’, the
property management information system which is an enterprise resource
planning (ERP) based software. The software allows detailed financial
control, assessment and planning in all aspects of the business
operations that will contribute to superior competitive advantages for
the Company.

In 2009, Tanayong’s business partner from Dubai sold its shares to
Singaporean company.

Since 2001, the Company’s major developments related to the business
operations and management are as follows:

+----+------------+---------------------------------------------------+
|    | 2001       | -   The Stock Exchange of Thailand posted the SP  |
|    |            |     sign to suspend trading of the Company’s      |
|    |            |     security from September 7, 2001.              |
+----+------------+---------------------------------------------------+
|    | 2002 -     | -   The Company went through the debt             |
|    | 2006       |     restructuring and business rehabilitation     |
|    |            |     process.                                      |
+----+------------+---------------------------------------------------+
|    | 2005       | -   Decreased registered paid-up capital from     |
|    |            |     4,684,557,000 baht to 3,677,468,400 baht.     |
|    |            |                                                   |
|    |            | -   Split par value from 10 baht per share to 1   |
|    |            |     baht per share and reduced registered paid-up |
|    |            |     capital from 3,677,468,400 baht to            |
|    |            |     533,333,333 baht in compliance with the       |
|    |            |     business rehabilitation plan as approved by   |
|    |            |     the Central Bankruptcy Court.                 |
|    |            |                                                   |
|    |            | -   Increased registered capital from 533,333,333 |
|    |            |     baht to 5,333,333,333 baht by issuing         |
|    |            |     4,800,000,000 shares.                         |
+----+------------+---------------------------------------------------+
|    | 2006       | -   Allotted 4,800,000,000 shares to creditors    |
|    |            |     and new investors and increased registered    |
|    |            |     paid-up capital from 533,333,333 baht to      |
|    |            |     5,333,333,333 baht in compliance with the     |
|    |            |     business rehabilitation plan as approved by   |
|    |            |     the Central Bankruptcy Court.                 |
+----+------------+---------------------------------------------------+
|    |            | -   The Central Bankruptcy Court ordered the      |
|    |            |     termination of the business rehabilitation on |
|    |            |     November 14, 2006.                            |
+----+------------+---------------------------------------------------+
|    |            | -   The Stock Exchange of Thailand allowed the    |
|    |            |     trading of the Company’s securities in the    |
|    |            |     property development sector since December    |
|    |            |     28, 2006.                                     |
+----+------------+---------------------------------------------------+
|    | 2007       | -   Increased registered paid-up capital to       |
|    |            |     5,813,333,333 baht by issuing 480,000,000     |
|    |            |     shares and allotted to business alliance by a |
|    |            |     private placement method.                     |
+----+------------+---------------------------------------------------+
|    |            |                                                   |
+----+------------+---------------------------------------------------+
|    |            | -   Increased registered capital from             |
|    |            |     5,813,333,333 baht to 8,056,923,076 baht by   |
|    |            |     issuing 2,243,589,743 shares to be allotted   |
|    |            |     for the conversion of convertible debentures. |
+----+------------+---------------------------------------------------+
|    |            | -   Established a joint venture company, Kamala   |
|    |            |     Beach Resort & Hotel Management Co., Ltd. to  |
|    |            |     operate the hotel business and develop        |
|    |            |     property in Phuket.                           |
+----+------------+---------------------------------------------------+
|    |            | -   Established a joint venture company, Hip Hing |
|    |            |     Construction (Thailand) Co., Ltd. to operate  |
|    |            |     the construction business.                    |
+----+------------+---------------------------------------------------+
|    | 2008       | -   Established a joint venture company, Absolute |
|    |            |     Hotel Services Co., Ltd. to operate the hotel |
|    |            |     management business.                          |
|    |            |                                                   |
|    |            | -   Cancelled the issuance of convertible         |
|    |            |     debentures and re-allotted 2,243,589,743      |
|    |            |     shares for the purposes of offering to the    |
|    |            |     existing shareholders and to investors on a   |
|    |            |     private placement method and/or institution   |
|    |            |     investors.                                    |
|    |            |                                                   |
|    |            | -   Increased registered and paid-up capital in   |
|    |            |     Kamala Beach Resort & Hotel Management Co.,   |
|    |            |     Ltd. from 850,000,000 baht to 859,000,000     |
|    |            |     baht.                                         |
+----+------------+---------------------------------------------------+
|    | 2009       | -   On May 28, 2009, the Board of Directors’      |
|    |            |     Meeting of the Company approved the Company   |
|    |            |     to purchase from Winnington Capital Limited   |
|    |            |     22,334,000 ordinary shares and 5,154,000      |
|    |            |     preference shares, representing 32% of the    |
|    |            |     registered capital in Kamala Beach Resort &   |
|    |            |     Hotel Management Co., Ltd., or 50% economic   |
|    |            |     interest  in  Kamala Beach Resort & Hotel     |
|    |            |     Management Co., Ltd., at the purchase price   |
|    |            |     of 648,444,000 baht,  paid by two portions,   |
|    |            |     i.e. in form of money in the amount of        |
|    |            |     100,000,000 baht, and the rest of 548,444,000 |
|    |            |     baht in form of the issuance of 1,034,800,000 |
|    |            |     Company’s new ordinary shares at the price of |
|    |            |     0.53 baht per share.  The Company will        |
|    |            |     propose to the Annual General Meeting of      |
|    |            |     Shareholders for the year 2009 which will be  |
|    |            |     held on July 24, 2009 to amend Clause 6. of   |
|    |            |     the Company’s Articles of Association to      |
|    |            |     enable the Company to receive the share       |
|    |            |     payment in form of assets other than money    |
|    |            |     and to increase the registered capital and    |
|    |            |     allocate 1,034,800,000 newly issued ordinary  |
|    |            |     shares to Winnington Capital Limited for the  |
|    |            |     purchase of shares in Kamala Beach Resort &   |
|    |            |     Hotel Management Co., Ltd.                    |
+----+------------+---------------------------------------------------+

3.2 Business Organization of the Company, Subsidiaries and Associates

Shareholding Structure of the Company - Subsidiaries and Associates

+-------------------+------------+-------------+------+------+------+
| Companies         | Business   | Operate     | Re   | Pai  | Shar |
|                   | Type       |             | gist | d-up | ehol |
|                   |            |             | ered | Cap  | ding |
|                   |            |             | Cap  | ital | (%)  |
|                   |            |             | ital | (MB) |      |
|                   |            |             | (MB) |      |      |
+-------------------+------------+-------------+------+------+------+
| Property          |            |             |      |      |      |
| Development       |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Siam Paging       | Land Owner | -           | 5.00 | 5.00 | 10   |
| Communication     |            |             |      |      | 0.00 |
| Co., Ltd.         |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Sam Pao Petch     | Land Owner | -           | 1.00 | 1.00 | 10   |
| Co., Ltd.         |            |             |      |      | 0.00 |
+-------------------+------------+-------------+------+------+------+
| Muang Thong       | Land Owner | -           | 1.00 | 1.00 | 10   |
| Lakeside          |            |             |      |      | 0.00 |
| Restaurant Co.,   |            |             |      |      |      |
| Ltd. *            |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Saraburi Property | Land Owner | -           | 10   | 10   | 3    |
| Co., Ltd.         |            |             | 0.00 | 0.00 | 0.00 |
+-------------------+------------+-------------+------+------+------+
|                   |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Hotel,            |            |             |      |      |      |
| Hospitalities,    |            |             |      |      |      |
| Property          |            |             |      |      |      |
| Management and    |            |             |      |      |      |
| Services          |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| DNAL Co., Ltd.    | Office     | TST Tower** | 5    | 5    | 10   |
|                   | Building   |             | 0.00 | 0.00 | 0.00 |
|                   | for rent   |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Muangthong Assets | Hotel      | Eastin      | 43   | 43   | 10   |
| Co., Ltd.         |            | Lakeside    | 3.50 | 3.50 | 0.00 |
|                   |            | Hotel       |      |      |      |
|                   |            |             |      |      |      |
|                   |            | U Chiang    |      |      |      |
|                   |            | Mai         |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Yongsu Co., Ltd.  | Serviced   | Yongsu      | 23   | 23   | 10   |
|                   | Apartment  | Apartment** | 4.00 | 4.00 | 0.00 |
|                   |            | – cease     |      |      |      |
|                   |            | operation   |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Thana City Golf & | Management | Sports Club | 1    | 1    | 10   |
| Country Club Co., | and        |             | 0.00 | 0.00 | 0.00 |
| Ltd.              | Operation  |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Tanayong Property | Building   | TST Tower** | 1.00 | 1.00 | 10   |
| Management Co.,   | Management |             |      |      | 0.00 |
| Ltd.              |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Kamala Beach      | Hotel and  | -           | 85   | 85   | 6    |
| Resort & Hotel    |            |             | 9.00 | 9.00 | 8.00 |
| Management Co.,   | Property   |             |      |      |      |
| Ltd.              | D          |             |      |      |      |
|                   | evelopment |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Absolute Hotel    | Hotel      | U Chiang    | 2    | 8.00 | 5    |
| Services Co.,     | Management | Mai         | 5.00 |      | 0.00 |
| Ltd.              |            |             |      |      |      |
|                   |            | Eastin      |      |      |      |
|                   |            | Hotel       |      |      |      |
|                   |            |             |      |      |      |
|                   |            | Makkasan,   |      |      |      |
|                   |            | Bangkok     |      |      |      |
+-------------------+------------+-------------+------+------+------+
|                   |            | Mountain    |      |      |      |
|                   |            | Lodge Khao  |      |      |      |
|                   |            | Yai         |      |      |      |
+-------------------+------------+-------------+------+------+------+
|                   |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Others Businesses |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Tanayong Food &   | Restaurant | Ceased      | 1.00 | 1.00 | 10   |
| Beverage Co.,     |            | operation   |      |      | 0.00 |
| Ltd.              |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Hip Hing          | Co         | Four Points | 10   | 2    | 5    |
| Construction      | nstruction | by Sheraton | 0.00 | 5.00 | 1.00 |
| (Thailand) Co.,   |            |             |      |      |      |
| Ltd.              |            |             |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Companies         | Business   | Operate     | Re   | Pai  | Shar |
|                   | Type       |             | gist | d-up | ehol |
|                   |            |             | ered | Cap  | ding |
|                   |            |             | Cap  | ital | (%)  |
|                   |            |             | ital | (    |      |
|                   |            |             | (    | USD) |      |
|                   |            |             | USD) |      |      |
+-------------------+------------+-------------+------+------+------+
| Tanayong          | Securities | Treasure    | 1    | 1    | 10   |
| International     | Investment | Pool        | ,000 | ,000 | 0.00 |
| Limited           |            | Investments | USD  | USD  |      |
|                   |            | Limited     |      |      |      |
|                   |            |             |      |      |      |
|                   |            | Rictor      |      |      |      |
|                   |            | Assets      |      |      |      |
|                   |            | Limited     |      |      |      |
|                   |            |             |      |      |      |
|                   |            | Tanayong    |      |      |      |
|                   |            | Treasury    |      |      |      |
|                   |            | Services    |      |      |      |
|                   |            | Limited     |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Treasure Pool     | Securities | Ceased      | 1.00 | 1.00 | 10   |
| Investment        | Investment | operation   | USD  | USD  | 0.00 |
| Limited ***       |            | and         |      |      |      |
|                   |            | liquidated  |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Rictor Assets     | Securities | Ceased      | 1.00 | 1.00 | 10   |
| Limited ***       | Investment | operation   | USD  | USD  | 0.00 |
|                   |            | and         |      |      |      |
|                   |            | liquidated  |      |      |      |
+-------------------+------------+-------------+------+------+------+
| Tanayong Treasury | Securities | Ceased      | 2.00 | 2.00 | 10   |
| Services Limited  | Investment | operation   | USD  | USD  | 0.00 |
| ***               |            | and         |      |      |      |
|                   |            | liquidated  |      |      |      |
+-------------------+------------+-------------+------+------+------+

Note

* Muang Thong Lakeside Restaurant Co., Ltd. is 100% owned by Muangthong
Assets Co., Ltd.

** TST Tower and Yongsu Apartment are parts of security assets under the
business rehabilitation plan. The Central Bankruptcy Court ordered the
auction sales of these assets and the sale proceeds will be shared among
creditors pro rata to their debt proportion. The Company held the
auction sales and got the awarded bidder on May 14, 2009.

*** Rictor Assets Limited, Treasure Pool Investments Limited, and
Tanayong Treasury Services Limited are 100% owned by Tanayong
International Limited. The three subsidiaries of Tanayong International
Limited ceased their operations and were liquidated in March 2009.

The Company separates its core business operations into 3 groups as
follows: (1) Property Development (2) Hotel, Hospitality, Property
Management and Services, and (3) Project Management.

(1) Property Development

The Company’s policy is to develop properties by emphasizing on the
diversity of products and project locations across Bangkok and theirs
vicinity in order to serve clients in diverse areas. Presently, the
Company has a full range of products as follows:

+-----------------------+-------------------+-------------------------+
| Project               | Operator          | Type of Project         |
+-----------------------+-------------------+-------------------------+
| 1.  Thana City        | Tanayong Pcl.     | Vacant land plots,      |
|                       |                   | condominium units,      |
| Bangna-Trad Road Km.  |                   | single-detached houses, |
| 14                    |                   | and townhouses          |
+-----------------------+-------------------+-------------------------+

(2) Hotel, Hospitality, Property Management and Services

The Company operates hotels, rental services for residential apartments
and office building, and other services as follows:

  ------------------------ -------------------- --------------------------
  Projects                 Operators            Types of Project

  Hotels                                        

  1. Eastin Lakeside Hotel Muangthong Assets    3 star hotel
                           Co., Ltd.            

  2. U Chiang Mai          Muangthong Assets    4 star hotel
                           Co., Ltd.            

  Residential Apartments                        

  1. The Royal Place I     Tanayong Pcl.        Residential Apartments for
                                                rent

  2. The Royal Place II    Tanayong Pcl.        Residential Apartments for
                                                rent

  3. The Grand             Tanayong Pcl.        Residential Apartments for
                                                rent

  Office Building                               

  1. TST Tower*            DNAL Co., Ltd. and   Office Building for rent
                           Tanayong Property    
                           Management Co., Ltd. 

  Service                                       

  1. Thana City Golf &     Thana City Golf &    Sports Club
  Country Club             Country Club Co.,    
                           Ltd.                 
  ------------------------ -------------------- --------------------------

* TST Tower and Yongsu Apartment are part of the security assets under
the business rehabilitation plan. The Central Bankruptcy Court ordered
the auction sales of these assets and the sale proceeds will be shared
among creditors pro-rata to their debt proportion. The Company held the
auction sale on May 14, 2009 which resulted in the awarded bidder.

(3) Project Management

(3.1) Baan Aur-Arthorn Project

The Company has been selected by the National Housing Authority to
construct the Baan Aur-Arthorn Project, totaling 20,000 units. The
project consists of 3-storey and 4-storey residential condominiums with
utility systems and infrastructure in accordance with the standards of
the National Housing Authority. At present, the Company has been
approved to construct 8,084 units of Baan Aur-Arthorn out of the total
20,000 units in several locations as follows:

+-----------------------+----------------------+----------------------+
| Projects              | Operator             | Types of Project     |
+-----------------------+----------------------+----------------------+
| Baan Aur-Arthorn      |                      |                      |
+-----------------------+----------------------+----------------------+
| 1. Baan Aur-Arthorn   | Tanayong Pcl.        | 3-storey residential |
| (Na Jomtien)          |                      | condominiums         |
|                       | Tanayong Pcl.        |                      |
| 2. Baan Aur-Arthorn   |                      | 4-storey residential |
|                       | Tanayong Pcl.        | condominiums         |
| Prajuabkirikhan (Hua  |                      |                      |
| Hin 3)                |                      | 3-storey residential |
|                       |                      | condominiums         |
| 3. Baan Aur-Arthorn   |                      |                      |
| Saraburi              |                      |                      |
|                       |                      |                      |
|   (Kok Yae)           |                      |                      |
+-----------------------+----------------------+----------------------+

(3.2) Four Points by Sheraton

Project management of a 4 star hotel, 32 storey with 427 rooms on a
turnkey basis (a design and build contract) such that the services
include design, construction and selection of hotel management. The
project is located in the Central Business District on Sathorn Road
adjacent to Surasak BTS skytrain station. Project value is approximately
2,200 million baht and expected to be completed in 2011.

3.  Revenue Structure

+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Re            | Operators      | 200 |     | 200 |     | 200 |     |
| venue/Project |                | 8/2 |     | 7/2 |     | 6/2 |     |
|               |                | 009 |     | 008 |     | 007 |     |
+===============+================+=====+=====+=====+=====+=====+=====+
|               |                | R   | %   | R   | %   | R   | %   |
|               |                | eve |     | eve |     | eve |     |
|               |                | nue |     | nue |     | nue |     |
|               |                |     |     |     |     |     |     |
|               |                | (   |     | (   |     | (   |     |
|               |                | MB) |     | MB) |     | MB) |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| 1. Property   |                | 4   | 4.5 | 1   | 0.4 | 2   | 0.9 |
| Development   |                | 8.7 |     | 0.2 |     | 9.8 |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Thana City    | Tanayong Pcl.  |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| 2. Hotel,     |                | 20  | 1   | 17  | 7.0 | 17  | 5.0 |
| Hospitality,  |                | 4.7 | 9.1 | 5.6 |     | 0.6 |     |
| Property      |                |     |     |     |     |     |     |
|               |                |     |     |     |     |     |     |
| Management    |                |     |     |     |     |     |     |
| and Services  |                |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Eastin        | Muangthong     | -   | -   | -   | -   | -   | -   |
| Lakeside      | Assets Co.,    |     |     |     |     |     |     |
| Hotel         | Ltd.           |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| U Chiang Mai  | Muangthong     | -   | -   | -   | -   | -   | -   |
|               | Assets Co.,    |     |     |     |     |     |     |
|               | Ltd.           |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| The Royal     | Tanayong Pcl.  | -   | -   | -   | -   | -   | -   |
| Place I       |                |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| The Royal     | Tanayong Pcl.  | -   | -   | -   | -   | -   | -   |
| Place II      |                |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| The Grand     | Tanayong Pcl.  | -   | -   | -   | -   | -   | -   |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| TST Tower     | DNAL Co., Ltd. | -   | -   | -   | -   | -   | -   |
|               | and Tanayong   |     |     |     |     |     |     |
|               | Property       |     |     |     |     |     |     |
|               | Management     |     |     |     |     |     |     |
|               | Co., Ltd.      |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Yongsu        | Yongsu Co.,    | -   | -   | -   | -   | -   | -   |
| Apartment     | Ltd.           |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Thana City    | Thana City     | -   | -   | -   | -   | -   | -   |
| Golf &        | Golf & Country |     |     |     |     |     |     |
| Country Club  | Club Co., Ltd. |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| 3. Project    |                | 54  | 5   | 97  | 3   | 50  | 1   |
| Management    |                | 7.3 | 1.1 | 6.0 | 9.4 | 2.1 | 4.7 |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Baan          | Tanayong Pcl.  | 44  | -   | 97  | -   | 50  | -   |
| Aur-Arthorn   |                | 0.1 |     | 6.0 |     | 2.1 |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Four Points   | Tanayong Pcl.  | 10  | -   | -   | -   | -   | -   |
| by Sheraton   |                | 7.2 |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| 4. Others     |                | 27  | 2   | 1   | 5   | 2,  | 7   |
|               |                | 0.0 | 5.2 | ,32 | 3.4 | 717 | 9.5 |
|               |                |     |     | 9.2 |     | .40 |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Gain on debt  | Tanayong Pcl.  | 19  | -   | 1   | -   | 2   | -   |
| restructuring |                | 5.1 |     | ,14 |     | ,64 |     |
| & business    |                |     |     | 9.2 |     | 7.1 |     |
| r             |                |     |     |     |     |     |     |
| ehabilitation |                |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Reversal of   | Tanayong Pcl.  | 1   | -   | 11  | -   | 6.5 | -   |
| allowance for |                | 1.8 |     | 4.4 |     |     |     |
| doubtful      |                |     |     |     |     |     |     |
| debts         |                |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Gain on sales | Tanayong Pcl.  | -   | -   | -   | -   | 2   | -   |
| of investment |                |     |     |     |     | 5.6 |     |
| associate     |                |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Interest      | Tanayong Pcl.  | 1.2 | -   | 5.5 | -   | 5.5 | -   |
| income        |                |     |     |     |     |     |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Others        |                | 6   | -   | 6   | -   | 3   | -   |
|               |                | 1.9 |     | 0.1 |     | 2.7 |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+
| Total Revenue |                | 1   | 100 | 2   | 100 | 3   | 100 |
|               |                | ,07 |     | ,49 |     | ,41 |     |
|               |                | 0.7 |     | 1.0 |     | 9.9 |     |
+---------------+----------------+-----+-----+-----+-----+-----+-----+

3.4 Business Goals

The Company divides its core business operations into 3 groups as
follows: (1) Property Development (2) Hotel, Hospitality, Property
Management and Services, and (3) Project Management. In the short run,
the Company’s main revenue comes from project management. In the longer
term, the Company’s revenue from all 3 core businesses is expected to be
evenly balanced.