DEAR SHAREHOLDERS,
In this second annual report and its first 12 full months of operations, YSH delivered a good set of financial and operating results for FY2008. We have laid a solid foundation for sustainable growth by combining ongoing organic growth initiatives with selective strategic acquisitions. We recognise that our future development and growth as a company will continue to be driven by astute selection of investment opportunities, proficient execution of investment projects, and a constant and steadfast reliance on our people.

In FY2008, I am pleased to report that our turnover grew by 18% to S$10.9 million, while profits attributable to equity holders stood at S$17.2 million. Our growth is a reflection of our unique strategic position and the competitive advantage we have built. We have in the past year, completed both the acquisition of Plantation Resources Pte Ltd ("PRPL") and Winner Sight Investments Ltd, which is reviewed below.

In February this year, we commenced with the development of Ivory Court Residences, a new cluster of single family bungalows on the existing Pun Hlaing Golf Estate in Myanmar. Spreading our wings further by capitalising on our expertise, we incorporated V-Pile Singapore Pte Ltd, to provide specialist micro piling, jack-in pile, jet-grouting, ground anchor and soil investigation services in Singapore.

WORLD-CLASS BIO-DIESEL PLAYER
Since last year, we have taken a majority stake in Plantation Resources Pte Ltd, a company with the exclusive rights to cultivate, manage and develop a 100,000 acre Jatropha Curcas plantation in Myanmar. This strategic initiative to produce critical Jatropha oil feedstock to meet the tremendous demand for bio-diesel in the ensuing years has laid the groundwork for us to become a major player in the cultivation of Jatropha Curcas. We have seen a lot of market interest in our plantation, as Jatropha Curcas is increasingly showing great promise to be the non-food feedstock for bio-diesel. Furthermore, our plantation is run in an ecologically sustainable manner, with various energy saving and recycling initiatives.

To date, about 2,000 acres of land have been cleared and prepared with 720 acres already planted at the Maw Tin Estate plantation, located in the Ayerwaddy Division of Myanmar. Plans for the first shipment of Crude Jatropha Oil this year is also in full progress.

At present, we are focused towards the use of improved germplasm and providing optimal conditions such as fertile soil and adequate moisture to maximise the genetic potential of the plant. With that in mind, we have entered into a formal agreement with The Sichuan University Faculty of Life Sciences, presently the foremost research authority on Jatropha Curcas, to collaborate in research and development to reap the fullest potential of this fuel crop

We aim to be a world leader in producing sizeable and sustainable bio-diesel feedstock. To this end, we have a number of natural advantages due to the availability of large tracks of land and an abundant of economical labour supply, and a favourable climate in Myanmar.

CYCLONE NARGIS RELIEF EFFORT
We are most fortunate that the recent Cyclone Nargis which devastated MyanmarԳ Ayerwaddy Delta did not cause significant damage to our plantation. Except for severe difficulties for access and some minor loss of plants, the majority of our crops remains intact. Nevertheless, in discharging our duty as a good corporate citizen, we have together with our associate companies, been actively involved in the relief efforts to the affected Ayerwaddy Division. Leading a large number of volunteers from within the ranks of our group, including medical staff from Pun Hlaing International Hospital, we were one of the first private companies present in the most remote corners of the affected areas distributing much needed relief items and saving lives. As the weeks went by, our work has shifted gradually from emergency relief work to rebuilding and reconstruction efforts to help victims of the cyclone to rebuild their lives. We are grateful to those who have generously donated to our Yoma Cyclone Relief Fund.

DEVELOPING PREMIER REAL ESTATE PROJECTS
Our emphasis on developing premier real estates projects will continue to be our guiding principle. In May this year, we have signed up our first batch of tenants at Yoma International Finance Centre ("Yoma IFC") at The Grand Central in Dalian, PRC, the 110,000 square metres composite building comprising the Yoma IFC office tower, Shama Luxe 5-star Serviced Apartments, and Grand Central high-end shopping mall. Being the first project of international standards in the Dalian Development Area ("DDA"), we are pleased to see premier foreign owned corporations choosing to move into the building. The take-up rate of the respective spaces in the project as well as the rental rates, are within our targeted projections.

The Grand Central office and retail portions will be managed by CBRE, while Shama Luxe Grand Central, will be managed by Hong KongԳ renowned Shama Group.

The Yoma IFC office tower has been operational since end of June 2008 while the remaining phases comprising the Shama Luxe Serviced Residences and Grand Central Fashion and Lifestyle Mall is expected to be completed by end 2008.

BALANCING RISKS AND RETURNS
We have grown over the years geographically and sectorally. This is a growth formula that has reduced our risks of execution and enhanced our returns on investment. We are currently diversified across businesses sectors of real estate development and plantation management, as well as across the geographical locations of Myanmar, China and Singapore.

We remain on the lookout for opportunities in China and Asia, which we believe will benefit from our unique and innovative approach to deliver worldclass projects. We hope to bring some of these interesting projects to fruition soon

It has been a very satisfying year for YSH and on behalf of the Board, I would like to thank all our investors and business partners for their strong support and confidence.