The Quam Story

Quam Limited ("Quam", and with its' subsidiaries, together referred to "Quam Group"), previously known as Wah Fu International Holdings Limited, was listed on The Stock Exchange of Hong Kong Limited in 1997 (Stock code: 00952).

As the credit crisis continues to plague the global financial industry, it has revealed a wealth of opaque business models and poor risk-management. Yet, for the Quam Group, it has highlighted the resilience of our business model that is based on sound risk-management and on the core traditional financial services of broking, trading, corporate finance and advisory, fund and asset management. Quam is persevering through these challenging times, and more than that, Quam is strengthening its strong niche position in the mid-tier financial services market. It has thrived on its people-centric values, with all of its divisions that serve individuals and businesses approaching their work with a person-to-person viewpoint.

Grounded on these values, Quam has navigated through the uncertain market environment by focusing on fulfilling the diverse needs of its private and institutional clients, and by offering an expanding range of financial services in an expanding number of financial markets. While others have been contracting, Quam has sure-footedly established itself in China and networked with its long-time business partners around the globe. While other companies have faded from the market scene, Quam is actively bridging the world to China and China to the world.

FIRMLY GROUNDED IN GREATER CHINA
Quam is confident that the decoupling trend that has insulated our core market, China, from the worst of the turmoil besetting the rest of the world's financial markets, will continue to benefit China and selected emerging markets when the global economy recovers. As a result, equities, particularly in China and the Southeast Asian emerging economies, will be the growth drivers of Quam Asset Management funds.

Quam Securities, through its Private Client Services division, is likewise relentlessly mapping strategic inroads to China's intricate financial services markets. It has already established its presence in Shenyang with a representative office. The Institutional Business division of Quam Securities also has specialized coverage on Greater China, with execution and placement capability in Hong Kong, Taiwan, and Macau. The operations of Quam Securities are made even more significant by its lead role in The Institute of Securities Dealers, of which Quam Securities' managing director, Kenneth Lam, is the Chairman.

Parallel to these initiatives, Quam Capital is raising its competitiveness and generating more deals in China by recruiting additional corporate finance professionals with strong China connections. Quam Private Equity meanwhile, entered into a joint venture with a Mainland Municipal Government to establish a fund to focus on investments in the pharmaceutical, electronic, and automotive industries.

Quam has also been etching itself into China in the online sphere. Since its re-launch in 2008, Quamnet.com has evolved as a leading provider of retail investor-related content to China financial websites and portals including, Sina, Hexun, i-Feng, MSN, Yahoo!Finance and others. QuamIR, continues to focus on connecting its listed-company clients with investors, analysts and the media in Greater China and overseas, leveraging its expertise to deliver its services in both the online and offline worlds.

WIDELY REACHING TO THE WORLD
Last year, Quam Group envisioned extending its reach and generating new collaborative business opportunities by aggressively expanding on the international stage. That vision came to fruition on 31 October 2008, when the Quam Group formalized a network of partner financial services institutions by launching the Global Alliance Partners (GAP). GAP is initially comprised of six alliance partners whose scope and reach, including their respective affiliate companies, span strategic markets in Asia, the Middle East, Europe and North America – providing a truly global reach.

Quam Securities' Institutional Business division has been tapping into the alliance to generate more leads and deals. The Wealth Management division of Quam Securities is planning to ride on the network of Global Alliance Partners to extend its footprint internationally. And Quamnet.com sees new revenue sources from alliance partners wanting exposure in Hong Kong and China.

The Quam Group comes into the alliance as a strong lead partner, contributing its own international relationships and capabilities.

Quam Securities' Private Client Services division encompasses a global network that extends beyond Greater China and spans the US, Australia, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Thailand and the UK. Its Institutional Business division has specialized coverage of the UK, Japan, Australia, Middle East, Singapore, Malaysia, Thailand, and Indonesia.

Quam Capital, the first in the Group to recognize and work through global alliances, continues to expand its international corporate advisory horizons through its position as the Hong Kong/China member in M&A International representing Hong Kong and China. Quam Capital's managing director, Richard Winter, is the Vice President in charge of Asia for M&A International.

BRIDGING THROUGH TECHNOLOGY
The bridge between China and the global markets is anchored in Quam's deployment of an efficient information technology infrastructure.

Quam Securities operates round-the-clock to reach major exchanges worldwide and to provide efficient and accurate trading services. The reach of the Quam Asset Management and Quam Wealth Management service platforms extends beyond emerging markets.

Quam's research reaches retail clients online through Quamnet.com, and through its syndicated electronic distribution channels maintained by the Institutional Business division. Quam websites – quamsecurities.com, quamcapital.com, quamwealth.com, and quamlimited.com – are undergoing significant revamp to make investment opportunities and financial information readily and quickly available to both private and institutional clients.

Quam provides a direct channel for interested investors to follow a company through a flexible, interactive investor relationship management platform. Its website – quamir.com – enables listed companies to disseminate public electronic corporate information, including investor presentations, press releases, results announcements, annual reports and video interviews.

The role of information technology in bridging the China and global markets cannot be made more evident by Quam than through the Global Alliance Partners website. Quam launched and hosts the GAP website, globalalliancepartners.com as the gateway to cross-border trading and cross-market research.

KEEPING THE BRIDGE STRONG
The Quam Group is not insulated from the negative impact of the financial crisis. Yet, it has taken and withstood its hits because of its capital base and operational strength. Last year's annual report explained how each of the Group's business units had been improving their products and services to fulfill the same goal – quality.

Achieving that goal despite a very tough market environment reinforces Quam's credibility as the premier mid-tier financial services institution in Hong Kong offering a comprehensive range of investment services and wealth management solutions.

On the strength of its people and its business model, Quam is in the right place at the right time with the right capabilities to take the lead in bridging the world to China and China to the world. Now, more than ever, the Quam Group is "one network, one partner, focused on YOU."

Last revision date: 22 June 2009