Chairman Message

Argyle Street Management (ASM) began to be intimately involved in the affairs of TIH in its capacity of a significant shareholder after ASM acquired DBS' stake in TIH in 2003. Ms Angie Li, a director of ASM and myself, a director of ASM Asia Recovery (Master) Fund, a substantial shareholder of TIH, have had the pleasure of working closely with the outstanding TIH management team over the years. Angie Li has been a board member since 2006 and I have been a board member since Oct 2004.

Together, we were able to effectuate profitable exits from a variety of complex situations including the strategic sale of Foodstar to Heinz, IPOs of Hsu Fu Chi in Singapore and Neo Neon in Hong Kong, sale of minority positions in Bukaka Singtel in Indonesia, Eastern Multimedia in Taiwan as well as Zhongnan and Watchdata in China to financial buyers. We were able to exit at valuation multiple times our costs and book value carried on our books. Since 2003, TIH has delivered to its shareholders an internal rate of return of 42.8%. The dividends received alone account for 60% of the total return to our shareholders.

I am grateful to all TIH shareholders for their support and patience. The last several years have not been smooth sailing. We went through the worst financial crisis the world has seen since the 1930s. The fund management business is also evolving rapidly. At this juncture, established funds with enormous balance sheets such as KKR, Carlyle, TPG and CVC are expanding aggressively in the private equity/venture capital business in Asia. As a niche player, TIH must seriously and objectively evaluate our strengths to determine our strategic positioning and tap our competitive advantages in this brave new world.

We believe one of our greatest strengths lie in our execution abilities, particularly when it comes to creating profitable exits in difficult situations. We have accumulated 20 years of experience and expertise in corporate finance and M&A knowledge in both Greater China and the ASEAN region. We see significant opportunities in acquiring non-core assets whose existing owners may have lost interest and lack personnel to undertake active management of such assets.

Our strategic relationships built over the years are unique and will stand us in good stead going forward. As a local player with decades of track record, TIH - along with ASM - enjoy close relationships with and access to significant strategic players including family offices and sovereign wealth funds. These strategic partners will enhance our co-investment firepower as well as deal sourcing capabilities.

Going forward, we shall avoid competing head-on with global behemoths. Instead, we will focus on leveraging on our competitive advantages. TIH will position itself as the service provider to our partners who place their confidence in us to help enhance value for all stakeholders and create exit opportunities. We see little competition in the buying and management of complex secondary portfolios.

We are in the midst of discussions with various partners to participate in our growth through equity investments or joint venture.

In October 2014, the Company, through its subsidiary, TIHT Investment Holdings Pte Ltd (“TIHT”), has completed a S$129 million acquisition of assets from Temasek comprises a minority interests in CEI Contract Manufacturing Limited (“CEI”) and the assignment of beneficial ownership in a minority interest in Mitsui Life Insurance Company Limited. The consideration of S$129 million is payable partly in cash, partly by way of financing and an issue of shares in TIHT. Post completion, TIHT is indirectly owned 55% by TIH and 45% by Temasek.

This acquisition is very much in line with TIH's new strategy to expand our business beyond private equity and venture capital investments. We are delighted with the confidence placed in us to help create value for all stakeholders. Through TIHT, we will work hard at enhancing capital return and optimizing value to deliver mutually rewarding returns to both parties.

TIH plans to expand its investment coverage to include special situation investment opportunities with listed and private companies. As such, we will broaden and deepen our strategic relationships with significant market players in the Greater China and Southeast Asia region to improve deal sourcing and asset management capabilities. We look forward to creating value and cementing our relationships with our strategic partners by entering into "repeat" transactions that are mutually beneficial to TIH and our strategic partners.

We are very excited about the achievements that the Company and its management have made since the completion of the internalization and are hopeful that the Company's business initiatives will succeed and the management deliver solid financial performance.

Thank you for all your support. We look forward to an exciting and rewarding journey for both the Company and our shareholders in the future.

Kin Chan ( Chairman )