Ann: Director Appointment/Resignation, page-32

Beside the confident crisis, XPD other crisis is cultural mismatch between Australian investors and Chinese management.

You have to understand. Business practices in China is different from the west, they rely on guanxi (relationship), and reputations rather than corporate governance.. to the west things perceived to be dodgy and corrupt and chaotic. But in reality, this system works.. it have been working for thousand of years.. japanese use a similar system call wa.

Don’t judge this company through western style corporate governance glass, it is a chinese company and need to be view through chinese corporate practice lens.. problem is it listed on a western style stock exchange... Therefore creating a mismatch understanding between management and investors.

Think of it this way.. westerners thinks its funny, the chinese use chopsticks as a tool for eating. Chinese on the other hand, think its impractical to use a knife and fork as tools for eating, Its down right dangerous using a knife for eating.... reality is, both practices has advantage and disadvantages.. but in the end they work..