,;;+227 EJJOGI FHLKMN B@@D AC AC =9.1-/2 S]b]ZeYgac_ QR X]Yef d^ Wafgac_ <64<*385>0-: Yc\ Udhe T][Y\]f d^ Vedig` Table of Contents Group Profile 3 Corporate Information 4 Principal Offices 5-6 Chairman’s Statement 7-14 Results in Brief 15 Profile of Directors and Senior Management 16-18 Financial Summary 19-20 Corporate Governance Report 21-25 Directors’ Report 26-36 Independent Auditor’s Report 37-38 Consolidated Income Statement 39 Consolidated Balance Sheet 40-41 Balance Sheet 42 Consolidated Statement of Changes in Equity 43-44 Consolidated Cashflow Statement 45-46 Notes to the Financial Statements 47-102 Celebrating 15 Years of Listing and Four Decades of Growth While 2008 represents a milestone 40 years of operation for Pico, the financial year of 2007 marks the 15th anniversary of Pico Far East Holdings Limited’s listing on the Hong Kong Stock Exchange, a period that has seen our listed company grow from turnover of HK$250 million to over HK$2,100 million in 2007. From employing less than 300 people when we listed in 1992, we now employ more than 2,300 talented individuals working in our offices on five continents. Our achievements in China have been remarkable. Since entering the market with only two representative offices in the early 1980s, we have established permanent offices and production facilities in Beijing, Chengdu, Chongqing, Dongguan, Guangzhou, Shanghai, Shenzhen and Xian. In South East Asia, our business continues to expand. In particular, Pico Thailand was listed on the Stock Exchange of Thailand in 2004. In Middle East, we have established offices in Bahrain, Qatar and the United Arab Emirates, and is considered one of the leading event marketing companies in the Gulf region. In Europe and North America, we have established offices in London, Paris, Atlanta, Chicago and Los Angeles. Each of these Pico offices is staffed by its own committed talents with its own specialist skills and passion to serve our customers in the world of event marketing. Through these offices, we have undertaken many successful projects and events around the world. We thank our clients, who have consistently encouraged us to raise our sights, and rewarded us with their trust and loyalty. We commend our shareholders for their faith and judgment. Consistently good results do not happen by chance but come from our staff who are committed to deliver quality in pursuit of excellence. We thank them all for making this possible and look forward to their continued effort to allow us to excel for many years to come. Group Profile Pico is an ideas and design-driven enterprise which, in strategic alliance with its technology partners, strives to be a successful company that provides high quality creative services through the efficient deployment of the best global resources. Branding needs cannot be addressed by advertising alone. If you recognise the value of the personal interaction of your customers with your products or services, then consider the complementary advantages of an event marketing partnership with Pico. Pico employs some 2,300 permanent staff with a presence in 18 countries, comprised of sales offices and production facilities across Asia, Australia, the Middle East, Europe, North America and Africa, to serve your exhibition and event marketing needs. 3 Annual Report Pico Far East Holdings Limited Corporate Information Honorary Chairman Corporate Office Chia Siong Lim Pico House 4 Dai Fu Street Board of Directors Tai Po Industrial Estate Executive Directors New Territories Lawrence Chia Song Huat (Chairman) Hong Kong (Chairman of the Remuneration Committee) James Chia Song Heng Registered Office Yong Choon Kong Kirk House P.O. Box 309 Non-Executive Director Grand Cayman Frank Lee Kee Wai Cayman Islands (Member of the Audit Committee) British West Indies Independent Non-Executive Directors Principal Share Registrars Charlie Yucheng Shi and Transfer Office (Chairman of the Audit Committee) The Harbour Trust Co., Ltd Gregory Robert Scott Crichton One Capital Place (Member of the Audit Committee and the P.O. Box 1787 GT Remuneration Committee) Grand Cayman James Patrick Cunningham Cayman Islands (Member of the Audit Committee and the British West Indies Remuneration Committee) Hong Kong Share Registrars Company Secretary and Transfer Office Leung Hoi Yan (CPA, ACIS, ACS, FCCA) Union Registrars Limited Room 1901-02 Auditor Fook Lee Commercial Centre RSM Nelson Wheeler Town Place 33 Lockhart Road Principal Bankers Wanchai Arab Bank plc Hong Kong Bank of East Asia CITIC Ka Wah Bank Corporate Calendar Deutsche Bank Annual General Meeting February 28, 2008 Development Bank of Singapore Payment of Final Dividend March 18, 2008 Hongkong and Shanghai Banking Corporation Announcement of June/July, 2008 Industrial and Commercial Interim Results Bank of China (Asia) Ltd Announcement of January/February, 2009 KBC Bank N.V. Final Results Mizuho Bank Ltd Standard Chartered Bank The Bank of Tokyo-Mitsubishi UFJ, Ltd United Overseas Bank 4 Annual Report Pico Far East Holdings Limited Principal Offices Atlanta Dongguan Pico Atlanta, Inc. Dongguan Pico Exhibition Services Co., Ltd. 5361 Royal Woods Parkway Reservoir Ind District 1 Road Tucker, GA 30084, USA Guan Jing Tou Tel: 1-770-414 1114 Dongguan 523705, China Fax: 1-770-414 1477 Tel: 86-769-8777 4471 [email protected] Fax: 86-769-8777 4474 [email protected] Beijing Beijing Pico Exhibition Services Co., Ltd. Dubai Pico Centre, 8 Li Shui Qiao Bei Pico International (Dubai) L.L.C. Chaoyang District Office No. 520, Building 8 Beijing 102218, China 5th Floor Dubai Media City Tel: 86-10-8482 3991 P.O. Box 37679 Fax: 86-10-6491 6591 Dubai, United Arab Emirates [email protected] Tel: 971-4-339 3188 Fax: 971-4-339 4188 Chicago [email protected] Pico Chicago, Inc. 1881 Circuit Drive Guangzhou Round Lake Beach, IL 60073, USA Guangzhou Pico Exhibition Services Co., Ltd. Tel: 1-847-740-0846 Room 701-2, Dongshan Plaza Fax: 1-847-740-2318 69 Xian Lie Road Central [email protected] Guangzhou 510095, China Tel: 86-20-8732 2990 Chongqing Fax: 86-20-8732 2996 Chongqing Pico Exhibition Services Co., Ltd. [email protected] 1703-4, Tower A, Times Square Apartment No. 3 Young Road, Yuzhong District Hanoi Chongqing 400010, China Pico Hanoi Limited Tel: 86-23-6371 0990 214 Nguyen Luong Bang Street Fax: 86-23-6371 3990 #02-01, Dong Da District [email protected] Hanoi, Vietnam Tel: 84-4-513 1038/39/40 Chengdu Fax: 84-4-513 1034 Chengdu Pico Exhibition Services Co., Ltd. [email protected] Room 1703, Tower A Times Plaza, No. 2 Zongfu Road Ho Chi Minh City Jinjiang District, Chengdu 610016, China Pico Hochiminh City Limited Tel: 86-28-8672 7990 446 Hoang Van Thu Street, 1st Floor Fax: 86-28-8672 3991 Tan Binh District [email protected] Ho Chi Minh City Vietnam Colombo Tel: : 84-8-948 5060 Intertrade Lanka Management (Private) Limited Fax: : 84-8-948 5059 Sri Lanka Exhibition and Convention Centre [email protected] 12 D.R. Wijewardena Mawatha Colombo 10, Sri Lanka Tel: 94-11-234 3239-41/234 2903-5 Fax: 94-11-234 3237 [email protected] 5 Annual Report Pico Far East Holdings Limited Principal Offices Hong Kong Seoul Pico International (HK) Limited Pico North Asia Limited Pico House, 4 Dai Fu Street 4F Sang Won Building Tai Po Industrial Estate, N.T. 165-11, Samsung-dong Hong Kong, China Kangnam-ku Tel: 852-2665 0990 Seoul 135-090, Korea Fax: 852-2664 2313 Tel: 82-2-558 3240 [email protected] Fax: 82-2-561 3005 [email protected] Kuala Lumpur Pico International (M) Sdn. Bhd. Shanghai Wisma Pico Shanghai Pico Exhibition Services Co., Ltd. 19-20 Jalan Tembaga SD5/2 Pico Building, 118 Chen An Road Bandar Sri Damansara Malu Town, Jiading District 52200 Kuala Lumpur, Malaysia Shanghai 201801, China Tel: 60-3-6275 5990 Tel: 86-21-5910 0990 Fax: 60-3-6275 3233 Fax: 86-21-5910 0900 [email protected] [email protected] London Shenzhen Pico International (UK) Ltd. Shenzhen Pico Exhibition Services Co., Ltd. One Victoria Villas Room 1010-1012 Richmond, Surrey TW9 2GW Excellence Times Square Building United Kingdom 4068 Yitian Road, Futian District Tel: 44-(0)20-8948 6211 Shenzhen 518048, China Fax: 44-(0)20-8948 9141 Tel: 86-755-8290 0540 [email protected] Fax: 86-755-8295 1282 [email protected] Los Angeles Pico Art Exhibit Inc. Singapore 20910 Normandie Ave. Pico Art International Pte. Ltd. Unit #D, Torrance Pico Creative Centre CA 90502, USA 20 Kallang Avenue Tel: 1-310-328 6990 Singapore 339411 Fax: 1-310-328 2054 Tel: 65-6294 0100 [email protected] Fax: 65-6291 8516 [email protected] Macau Pico International (Macao) Limited Taipei 7/F, Flat D Pico International Taiwan Limited Av. Da Amizade, No. 918 3/F, No. 343, Nanking East Road World Trade Center Building Section 5, Taipei, Taiwan Macau Tel: 886-2-2753 5990 Tel: 853-2872 7990 Fax: 886-2-2766 6900 Fax: 853-2872 7902 [email protected] [email protected] Tokyo Paris Pico International Limited Pico Paris succ de Pico International (UK) Limited Tokuda Building 4F 14/30 rue de Mantes 7-3 Nihonbashi Kabutocho, Chuo-ku 92700 Colombes, France Tokyo 103-0026, Japan Tel: 33-1-4649 8000 Tel: 81-3-3808 0891 Fax: 33-1-5683 1373 Fax: 81-3-3808 0897 [email protected] [email protected] 6 Annual Report Pico Far East Holdings Limited Chairman’s Statement I am pleased to present to our shareholders, the It is our largest business segment accounting annual report of Pico Far East Holdings Limited for 82.1% of the Group’s turnover (2006: (the “Company”) and its subsidiaries (the 86.3%).