10:04 FIRST DRAGONCOM<00875> - Announcement (5) Suggestion to Improvement Staff planning should be considered in the approval of vacation leaves. The management should also avoid having all key accounting staff taking vacation leaves at the same time or should assign competent duty staff to take the replacement when such accounting staff are on vacation leaves in order to ensure that the accounting function can be carried out smoothly. Job rotation or training should be provided to equip staff with necessary skills and knowledge to take such replacement. Outgoing accounting staff should complete a handover memorandum which clearly specify the works in progress and status to ensure all works in progress are clearly and properly handed over to responsible staff in order to maintain continuity. Such handover memorandum should be agreed and signed by the responsible staff. The management should ensure that all company assets including books and records of the Group which were kept by the outgoing staff are duly returned to the Group before they leave. Management Response The management agreed to adopt the suggestion. The Company has adopted the abovementioned suggestions made by professional adviser. DEFINITIONS ``Board'' the board of directors, including independent non-executive directors, of the Company ``Company'' First Dragoncom Agro-Strategy Holdings Limited, a company incorporated in Bermuda with limited liability and whose securities are listed on the Main Board of the Stock Exchange ``Dr. Hon'' Dr. Hon Fong Ming, Perry (*) ``Dragon Delta'' Dragon Delta Limited, a company incorporated in the British Virgin Islands, the entire issued share capital of which is owned by Dr. Hon Fong Ming, Perry through Dragoncom Group Limited and Dragoncom (Hong Kong) ``Dragoncom (Hong Kong)'' Dragoncom (Hong Kong) Limited, a company incorporated in Hong Kong, the entire issued share capital of which is owned by Dr. Hon Fong Ming, Perry through Dragoncom Group Limited as at the date of the Sale & Purchase Agreement ``Group'' the Company and its subsidiaries ``HK World'' Hong Kong World Chinese Group Limited, a company incorporated in Hong Kong and is owned as to 95% and 5% by Mr. Zhang and Mr. Wang Wenbin (*) respectively ``Listing Rules'' the Rules Governing the Listing of Securities on the Stock Exchange ``Mr. Qin'' Mr. Qin Qing Yun (*) ``Mr. Yu'' Mr. Yu Enguang (*) ``Mr. Zhang'' Mr. Zhang Xiaoxiong (*) ``Mr. Zhao'' Mr. Zhao Cai Yuan (*) ``Ms. Lau'' Ms. Lau Ha (*) ``Professor Ma'' Professor Ma Qingguo (*) ``Sale & Purchase Agreement'' the sale & purchase agreement dated 28 March 2005 entered into between Dragoncom (Hong Kong) and HK World in relation to the transfer of 40% equity interest in Dragon Delta ``SFO'' Securities and Futures Ordinance ``Shares'' shares of HK$0.01 each in the capital of the Company ``Stock Exchange'' The Stock Exchange of Hong Kong Limited By order of the Board FIRST DRAGONCOM AGRO-STRATEGY HOLDINGS LTD. Zhang Xiaoxiong Chairman As at the date of this announcement, the directors of the Company are comprised of eight directors, including four executive directors, namely, Mr. Zhang Xiaoxiong, Dr. Qian Keming, Mr. Huang Jianhua, Mr. Han Jide, a non-executive director, namely, Mr. Qin Qing Yun, and three independent non-executive directors, namely, Mr. Zhao Cai Yuan, Ms. Lau Ha and Mr. Huang San Xing. Hong Kong, 7 April 2005 * For the Chinese names, please refer to the press announcement today.