Trade payables amounted to RMB6.8 million as at end HY2009, representing an increase of RMB1.2 million
over end of FY2008. Other payables increased by RMB2.2 million to RMB24.0 million as at end HY2009,
due mainly to accrued commission to the sales personnel amounting to RMB4.9 million as at 30 June 2009.
Approximately RMB11.2 million of other payables are attributable to Shanxi Longkeer and they comprise
mainly non-trade balances availed by the previous shareholders to the subsidiary for working capital
purposes prior to the subsidiary being acquired by the Group. Other constituents in other payables comprise
accrued operating expenses, sundry creditor balances, VAT and other taxes payable, including accruals for
PRC withholding tax of RMB2.3 million on the portion of the distributable profits derived by the PRC
subsidiaries with effect from FY2008 which is expected to be distributed out as dividends.