Central Development Holdings Limited — Annual Report 2011

Jul 8, 2011

CONTENTS

	Pages
Corporate Information	1
Statement of Chairman	2
Directors Report'	7
Corporate Governance Report	18
Independent 'Auditor Report s	25
Consolidated Income Statement	27
Consolidated Statement of Comprehensive Income	28
Consolidated Statement of Financial Position	29
Statement of Financial Position	31
Consolidated Statement of Changes in Equity	32
Statement of Changes in Equity	33
Consolidated Statement Cash of Flows	34
Notes the to Financial Statements	36
Summary of Financial Information	112
Particulars the of Group Major s' Properties	113

INFORMATION CORPORATE

DIRECTORS OF BOARD

Directors Executive

(Chairman (Zhong Cao .Mr (2010 November 19 on appointed( (chairman-Vice (Pong Tsun Fung .Mr (Director Finance (David ,Ching Kam Tsang .Mr

Directors executive-Non

November 19 on appointed (Chuan Ru Peng .Mr (2010 December 17 on resigned and 2010 (2010 December 7 on appointed (Bush Neil .Mr

Directors executive-Non Independent

On Tak Yip .Mr Baoli Jing .Mr Ming Liang Bao .Mr

Committee Audit

(Chairman (On Tak Yip .Mr Baoli Jing .Mr Ming Liang Bao .Mr

Committee Remuneration

(Chairman (David ,Ching Kam Tsang .Mr On Tak Yip .Mr Baoli Jing .Mr Ming Liang Bao .Mr

SECRETARY COMPANY

Sharon ,Kam Wai Ngan Miss

AUDITOR

Limited BDO

ADVISOR LEGAL

Austin Sidley Company & Pau .Y.K Louis

BANKERS PRINCIPAL

China of Bank The Limited Asia East of Bank The Corporation Banking Shanghai and Kong Hong The Limited

OFFICE REGISTERED

Limited Trust & Bank Caledonian of Office The House Caledonian Town George Cayman Grand Islands Cayman

BUSINESS OF PLACE PRINCIPAL

.F18/ 1801-07, Room Building Resources China Road Harbour 26 Wanchai Kong Hong

SHARE BRANCH KONG HONG REGISTRAR

Limited Progressive Tricor Centre Tesbury .,F26/ East Road s'Queen 28 Wanchai Kong Hong

Code Stock

269

Details Contact

7100 3176 (852) .:no Telephone 7122 3176 (852) .:no Facsimile

Website Company

hk.com.ctrg.www://http

,shareholders all To

the (Limited Group Resources Timber China of") Board "the (directors of board the of behalf On of statements financial audited the and 2011 Report Annual the present to delighted am I ,")Company" 2011. March 31 ended year the for") Group "the together (subsidiaries its and Company the

review Business

transportation to focus its shift gradually to started has Group the 2011, March 31 ended year the For timber ,trading and logging timber ,management and operation forest from operation expressway and and development property ,seedlings of trading and plantation ,products timber of sale ,processing .management asset

our witnessed has it as Group the for point turning a was 2011 March 31 ended year financial The continual a Despite .operation expressway and transportation of frontier new a into expedition up build to opportunities investment for looking persistently Group the ,environment market challenging .future near the in fruits bear will foresees Group the which operation our of depth and breadth the

steady in was Province Hubei of city Yichang in operation development property s'Group the ,Further Property Xinshougang Yichang arm development property s'Group the 2010, August 16 On .progress a into entered") Xinshougang Yichang)("宜昌新首鋼房地產開發有限公司(Limited Company Development ,Ltd .Co Development Properties Dafang party third independent an with agreement development joint commercial complex several of development the for") Properties Dafang)("湖北省大方房地產綜合開發公司( 宜昌三峽國際(Centre Convention International Gorges Three Yichang including ,properties residential and Garden Guest State Gorges Three the and)三峽國賓館(House Guest State Gorges Three the ,)會展中心 has Xinshougang Yichang .")Project Yichang "the collectively)(三峽國賓花園商品房(Property Commercial development necessary all for funding provided has Properties Dafang while land of parcel a contributed a on Properties Dafang and Group the by shared be to is sales from profit distributable and 2011 Junemid in commenced properties residential of sale-Pre .Project Yichang the for costs construction and .basis 40 60:

review Financial

to 37% of decrease substantial a recorded Group the of turnover 2011, March 31 ended year the For significant a to attributable mainly is which) million \$21.17HK 2010: (million \$13.33HK approximately which) seedlings of sales including (trading and logging timber from generated income of decrease ,logging timber in down cut significant a from resulting) million \$14.38HK 2010: (million \$3.22HK was ,segments business four comprised turnover The .uncertainty market to due made adjustment an and development property ,operation timber other ,trading and logging timber from income namely approximately contributed respectively which leasing warehouse storage cold and ,management asset \$6.11HK ,million \$14.38HK 2010: (million \$0.76HK and ,million \$0HK ,million \$9.35HK ,million \$3.22HK .income consolidated s'Group the to) million \$0.68HK and million \$0HK ,million

shown are Group the of expense tax income before loss to contribution and turnover segment Detailed .("Statements Financial "the (Report Annual this of Statements Financial the to Notes the of 6 note in the ,result a As .)million \$19.53HK 2010: (million \$16.49HK approximately was year the for sales of Cost of profit gross a to contrary was which million \$3.15HK approximately of loss gross a recorded Group .year financial last in million \$1.64HK approximately

loss and) million \$36.67HK :)Restated (2010 (million \$157.53HK approximately was year the for loss Net basic per cents 1.026HK was") Shareholders ("Company the of shareholders to attributable share per 0.49HK :)Restated (2010 (share diluted per cents 1.026HK and) cents 0.31HK :)Restated (2010 (share .(cents

sell to costs less value fair in change a on recorded losses the to attributable mainly was loss The \$22.46HK approximately was which") PRC ("China of Republic s'People the in assets biological of instrument financial derivative the of value fair in change a and) million \$4.87HK of gain 2010: (million approximately of total a .e.i) million \$29.82HK of gain 2010: (million \$67.73HK approximately was which ,million \$71.21HK was expenses administrative and selling The .value book in loss million \$90.19HK .(million \$71.48HK :)Restated (2010 (year previous of that from decreased slightly

the and instrument financial derivative the of value fair in changes the that considers Board The cash operating the on impact any have not do which items cash-non are PRC the in assets biological .Group the of flows

March 31 at as million \$591.58HK approximately at stood equivalents cash and cash s'Group the ,Further of completion the to due was equivalents cash and cash in increase The .)million \$19.76HK 2010: (2011 ,share ordinary per \$0.30HK of price placing a at Company the of shares new 1,800,000,000 of placing 2011. January in proceeds net million \$534HK approximately raising

.(31.1% :(Restated (2010 (27.6% was Group the of ratio gearing 2011, March 31 at As

.(Nil 2010: (2011 March 31 ended year the for dividend final any recommend not did Board The

review Liquidity

approximately to amounted liabilities current less assets total s'Group the 2011, March 31 at As 2010, March 31 at as) Restated (million \$2,411HK approximately to compared million \$2,643HK 2010) million \$3,107HK approximately were assets Total 9.6%. about of increase an representing \$1,250HK approximately of assets current-non total comprised which) million \$2,538HK :)Restated( million \$1,857HK approximately of assets current total and) million \$1,448HK :)Restated (2010 (million under properties include Company the of assets current The .)million \$1,089HK :)Restated (2010( \$912HK :)Restated (2010 (million \$1,077HK approximately at valued were which sale for development .(million

2011, in million \$464.68HK to 2010 in million \$127.32HK from increased liabilities current s'Group The payables other and trade ,million \$284.80HK approximately of note promissory a by attributable mainly \$59.27HK approximately of partner venture joint a to due amount ,million \$92.72HK approximately of is loan s'director said The .million \$12.45HK approximately of director a to due amount an and million .demand on repayable and free interest ,unsecured

Alliance China to issued was million \$280HK of amount principal a with note promissory said The the with connection in ,Company the of shareholder substantial a ,Limited Group Holding International May 21 dated announcement an in disclosed was which of details ,Xinshougang Yichang of acquisition repay to failed Group the if ,note promissory the of clause default the per As .Company the by 2009 and principal of payment immediate demand to entitled is holder note the ,schedule repayment per as May 8 since Group the by made was interest accrued and principal for payment No .interest accrued recorded was million \$284.80HK approximately of total a ,result a As .date repayment first the 2010, be can information the of Details .)million \$59.93HK 2010: (2011 March 31 at as liabilities current under .Statements Financial the to Notes the of 30 note in found

\$188.80HK approximately was 2011 March 31 at as outstanding commitments capital s'Group The Yichang the of development the for was 98%, almost representing ,million \$184.72HK which of ,million .Project

\$5.70HK 2010: (million \$6.16HK of borrowing outstanding an had Group the 2011, March 31 at As .(million

,dollars Kong Hong in mainly denominated are liabilities and assets ,operations business s'Group The Australian in appreciation thus ,Australia in warehouse storage cold its except dollars US and Renminbi exchange foreign considered Board the ,aforesaid as Save .gain exchange net a in resulted has dollars exposure exchange foreign potential the time to time from review will management The .minimal is risk arisen be to risk exposure exchange foreign potential any minimise to actions appropriate take will and .future the in

currency foreign have not did and purposes hedging for instruments financial any use not did Group The .instruments hedging other and borrowings currency foreign by hedged being investments net

Financial the to Notes the of 45 note in out set are management risk financial s'Group the of Details .Statements

expenditure and raising Capital

\$0.01HK of shares ordinary new 1,800,000,000 issued and allotted Company the 2011, January 21 On from independent parties third are who placees six than less not to") Shares "the (Company the of each of price placing a at Limited) Kong Hong (Securities Junan Guotai agent placing through Company the \$450HK approximately which of ,proceeds net million \$534HK approximately raising ,Share per \$0.30HK 內蒙古准 (" Limited Company Expressway Haul Heavy Zhunxing Mongolia Inner into injected was million and allotted were Shares placing The .capital registered as") Zhunxing ") ("興重載高速公路有限責任公司 Shareholders the of resolution a by Directors the to granted mandate general the to pursuant issued 2010. August 30 on held meeting general annual the at passed

Share per \$0.23HK at Shares new 287,141,477 issued Company the 2011, March 31 ended year the For Shares new 3,342,857,141 and 2010 February 8 on Company the by issued warrants of exercise to due conversion the at 2010 February 9 on Company the by issued bonds convertible of conversion upon .share per \$0.056HK of price

prospect and events Material

Project Yichang of development Joint

Dafang with agreement development joint a into entered Xinshougang Yichang 2010, August 16 On provide shall Properties Dafang ,agreement the to Pursuant .Project Yichang the of respect in Properties the of costs construction and development necessary all meet to funds the Xinshougang Yichang \$916HK approximately (million 1,000RMB to million 800RMB from ranging estimated (Project Yichang of benefit economic the of 35-40% share to entitlement an for exchange in)) million \$1,145HK to million .Project Yichang the

joint that considered Directors The .intensive capital is Project Yichang the of development The sufficient securing in risk its minimise to Group the allowed Properties Dafang with development benefit economic majority the holding still while terms favourable and viable commercially at financing .Project Yichang the from

in started been has properties residential of sale-pre and progress steady in is Project Yichang The .year financial coming the in Group the of turnover the to contribute will thus and 2011 June-mid

operation expressway and transportation into Transforming

expressway and road toll in business new a on embarked Group the 2011, January from Commencing operate and build to right exclusive an has which Zhunxing into investing by Mongolia Inner in operation Autonomous Mongolia Inner the in transportation coal for designed expressway toll duty-heavy first the Banner Jungar the from run will road toll The .)period construction the excluding (years 30 for Region

鄂爾(Ordos the in)呼和浩特(Hohhot of south located area production coal major a is which)准格爾旗( coal for hub logistic major a is which)興和縣(County Xinghe to km 265 for east north the toward ,)多斯 .PRC northern in distribution

designed is 2013, January in traffic for open to expected and construction under currently ,expressway The .trucks ton50- allow only can PRC the in expressways other most whereas trucks ton100- sustain to

injection capital first the into entered ,subsidiary its through ,Company the 2011, April 21 on ,nutshell a In 500RMB of consideration the at interest equity 11% its of acquisition the for Zhunxing with agreement acquisition said The .")Agreement Injection Capital First "the) (million \$602HK approximately (million .venture joint foreign-Sino a into transformed been has Zhunxing and 2011 May 9 on completed was injection capital second a into entered further ,subsidiary its through ,Company the 2011, May 26 On 1,818RMB of consideration the at interest equity 40% its of acquisition the for Zhunxing with agreement ,agreement injection capital second the of completion Upon .)million \$2,190HK approximately (million of subsidiary a become will Zhunxing and Zhunxing in interest equity 51% of control in be will Group the 21 dated Company the of announcements the in disclosed were transaction the of Details .Company the 2011. May 26 and April

equity 66% of total a acquire to obliged not but option an granted been has Group the ,addition In economic the capture to order In .Agreement Injection Capital First the under Zhunxing in interest will and future the in Zhunxing in invest further may Group the ,operation expressway the of benefits .progress the of informed Shareholders the keep

SCHEME BENEFIT RETIREMENT AND EMPLOYEES

at as Guyana and Australia ,PRC the ,Kong Hong in employees 235 approximately had Group The to schemes options share and bonus ,policy remuneration implements Group The 2011. March 31 general the within basis related-performance on rewarded are employees its of scales pay that ensure .strategy remuneration s'Group the of framework

of level ,work of scope the on based determined are Directors the to payable emoluments The .seniority and experience ,involvement

Acknowledgements

their for Shareholders all to gratitude and appreciation my extend to opportunity this take to wish I ,energy tremendous their for colleagues and Directors fellow my thank to and support continual .year past the in work hard and dedication

Zhong Cao .Mr Chairman

2011 June 28 ,Kong Hong

year the for Group the of statements financial audited the and report annual their present Directors The 2011. March 31 ended

Activities Principal

.holding investment in engaged principally is Company the ,review under year the During

Financial the of 44 note in out set are 2011 March 31 at as subsidiaries s'Company the of activities The and operation forest in engaged principally was Group the ,review under year the During .Statements and plantation ,products timber of sale ,processing timber ,trading and logging timber ,management .management asset and development property and ,seedling of trading

Information Segment

.Statements Financial the of 6 note in out set are information segment the of Details

Dividends and Results

Annual this of 27 page on statement income consolidated the in out set are Group the of results The .Statements Financial the of notes accompanying the in and Report

2010:) 2011 March 31 ended year the for dividend final of payment any recommend not do Directors The .(Nil

Reserves and Premium Share

set are year the during Company the and Group the of reserves and premium share the in Movements .Report Annual this of 33 and 32 pages on out

Equipment and Plant ,Property

the during Company the and Group the of equipment and plant ,property the in movements of Details .Statements Financial the of 17 note in out set are year

Properties

Annual this of 113 page on out set are 2011 March 31 at as Group the of properties of Particulars .Report

Subsidiaries

Financial the of 44 note in out set are 2011 March 31 at as Group the of subsidiaries the of Particulars .Statements

Liabilities Contingent

Financial the of 42 note in out set are 2011 March 31 at as liabilities contingent s'Group the of Details .Statements

Borrowings

.Statements Financial the of 34 note in out set are 2011 March 31 at as borrowings of Details

Capital Share

Financial the of 37 note in out set are capital share s'Company the in movements the of Details .Statements

shares of Placement

six than less not to Shares new 1,800,000,000 issued and allotted Company the 2011, January 21 On (Kong Hong (Securities Junan Guotai agent placing through Company the from independent placees .proceeds net million \$534HK approximately raising ,Share per \$0.30HK of price placing a at Limited Directors the to granted mandate general the to pursuant issued and allotted were Shares placing The 2010. August 30 on held meeting general annual the at passed Shareholders the of resolution a by

bond Convertible

the of conversions divers upon issued were Shares 3,342,857,141 2011, March 31 ended year the For \$0.056HK of price conversion the at 2010 February 9 on Company the by issued bond convertible remained bond convertible million \$282.8HK 2011, March 31 at As .")Price Conversion "the (share per 8 before or on Price Conversion the at Shares 5,050,000,000 into convertible are and outstanding .Statements Financial the of 36 note in shown are Conversion the of details Further 2013. February

Warrants

various to pursuant Shares 287,141,477 issued has Company the ,review under period the During per \$0.23HK of price exercise the at 2010 February 8 on Company the by issued warrants of exercises the at exercisable are which warrants outstanding 712,858,523 are there 2011, March 31 at As .Share in shown are Group the of warrants of Details 2013. February 7 before or on Share per \$0.23HK of price .Statements Financial the of 40 note

Suppliers and Customers Major

largest five the to attributable purchases and turnover aggregate the 2011, March 31 ended year the For of purchases and turnover total the of 45% and 65% represented respectively Group the of customers .Group the

Transactions party related

accordance in disclosed been have Statements Financial the of 43 note in transactions party related The Kong Hong the by issued" Disclosures Party Related "24 Standard Accounting Kong Hong the with nor transactions connected constitute not did and") HKICPA ("Accountants Public Certified of institute Listing the Governing Rules the of A14 Chapter of definition the under transactions connected continuing .("Rules Listing") ("Exchange Stock ("Limited Kong Hong of Exchange Stock The on Securities of

Summary Financial Year Five

five past the for Group the of liabilities and assets the of and results published the of summary A set is ,appropriate as reclassified and statements financial audited the from extracted as ,years financial .Statements Financial the of part form not does summary The .herein 112 page on out

Rights Emptive-Pre

of laws the or ,Association of Articles s'Company the under rights emptive-pre for provision no is There existing to basis rata-pro a on shares new offer to Company the oblige would which ,Islands Cayman the .Shareholders

Securities Listed of Redemption or Sale ,Purchase

any or Company the by Company the of securities listed of redemption or sale ,purchase no was There .year the during subsidiaries its of

Directors

:were Report Annual this of date the to up and year the during Company the of Directors The

:Directors Executive

(2010 November 19 on appointed (Zhong Cao .Mr Pong Tsun Fung .Mr David ,Ching Kam Tsang .Mr

:Directors executive-Non

.Mr Ru Peng Chuan	( appointed 19 on November 2010 and resigned 17 on December (2010
Neil .Mr Bush	( appointed 7 on December (2010

:Directors executive-Non Independent

On Tak Yip .Mr Baoli Jing .Mr Ming Liang Bao .Mr

,Company the of Directors the ,Association of Articles s'Company the of 117 Article with accordance In to subject are ,Directors executive-non independent and executive-non ,executive the including 100 Article ,addition In .election-re for themselves offer may ,eligible being ,and rotation by retirement hold shall Directors of board the by appointed Director any that provides Association of Articles the of election-re for eligible be then shall and Company the of meeting general following the until only office retire shall Baoli Jing and Bush Neil ,Pong Tsun Fung ,Zhong Cao Messrs ,Accordingly .meeting that at .election-re for themselves offer shall ,eligible being and ,meeting general annual forthcoming the at

Directors executive-non independent the of each from confirmation annual received has Company The is them of each that considered and Company the to independence their to regards as") INEDs "the( .Company the to independent

DIRECTORS OF DETAILS BIOGRAPHICAL

Directors Executive

Board the of chairman the ,Director executive an as appointed been has 51, aged ,Zhong Cao .Mr from graduated was Cao .Mr 2010. November 19 since Company the of officer executive chief the and with PRC the ,Sciences Social of Academy Chinese the of School Graduate the and University Zhejiang Cao .Mr 1988, Since .respectively economics in degree master a and engineering in degree bachelor a ,China of Commission Reform and Development National the as such institutions various served has Investment and Trust International Beijing ,Government s'People Municipal Huizhou Province Guangdong Council State the of Centre Research Development the and Corporation Shougang ,Limited Company Shougang of board the of chairman vice the and director executive-non a as remains Cao .Mr .China of is He .)697 :Code Stock") (Concord Shougang ("Limited Company Enterprises International Concord Australian the on listed company a ,)NGX :Code Stock (Limited Iron Gibson Mount of director a also .Exchange Securities

and chairman deputy the :including companies in positions managerial various held also has Cao .Mr Grand of director a"); Holding Shougang ("Limited) Kong Hong (Holding Shougang of manager general — ("Gate China ("Limited Investments Gate China and") Invest Grand ("Limited International Invest an; Concord Shougang of shareholders substantial are Gate China and Invest Grand ,Holding Shougang manager general and chairman vice ,Concord Shougang of manager general the and director executive executive an ,)730 :Code Stock") (Grand Shougang ("Limited) Group (Grand Concord Shougang of and); 639 :Code Stock (Limited Group Resources Fushan Shougang of manager general and director :Code Stock (Limited Holdings Century Concord Shougang of directors of board the of chairman the Creations Digital Global and) 521 :Code Stock (Limited Holdings Technology Concord Shougang ,)103 from resigned Cao .Mr .Grand Shougang of subsidiary a is which) 8271 :Code Stock (Limited Holdings Limited Resources APAC of director executive an was he ,addition In 2010. May 10 on positions those 2009. October to 2007 May from chairman a as well as 2007 April from) 1104 :Code Stock(

September 22 since Director executive an as appointed been has 51, aged ,Pong Tsun Fung .Mr banking investment ,logistics ,development property in experience year20- over has Fung .Mr 2004. companies various in positions management senior held has Fung .Mr .management company and .Samoa and Islands Virgin British ,Kong Hong in incorporated

February 17 since Director executive an as appointed been has 54, aged ,David ,Ching Kam Tsang .Mr covers which years 20 past the over experience management financial extensive has Tsang Mr 2004. of member fellow a also is Tsang Mr .business finance corporate and broking stock ,banking merchant .HKICPA the of member a and Kingdom United the in Accountants Certified of Association Chartered the

(Continued(DIRECTORS OF DETAILS BIOGRAPHICAL

Director executive-Non

.Mr 2010. December 7 since Director executive-non a as appointed been has 56, aged ,Bush Neil .Mr and Economics International in degree s'Bachelor a with University Tulane from graduated was Bush .Administration Business in degree s'Master a with Business of School Freeman University Tulane the In .States United the Colorado ,Denver in Company Production Amoco with worked Bush .Mr 1980, In various in resources oil explored which companies oil independent two formed Bush .Mr ,s1980 the In .Argentina in and States United the of Michigan and ,California ,Colorado ,Wyoming including states ,Corporation Ultrafloat of owner part a becoming by industry oil the in diversified Bush .Mr ,s1990 the the For .facilities storage field oil to equipment conservation supplies that company based Houston a various in engaged and company technology education edge cutting a founded has he years fifteen past has which 2008, December in Corporation Energy Nexus forming by business gas and oil the enteredre Bush .Mr .East Middle the and Asia on focus a with activities development business international of Chairman the is Bush .Mr ,addition In .Asia and Africa in projects international developed actively gas and oil upstream in involved is he entities these through and Oil ATX of President the and Oil TX Points the of Chairman the as serves also Bush .Mr .Turkmenistan and States United the in development 1989 in Bush .W.H George President by formed organization charitable national a ,Institute Light of increasingly and America across all communities in volunteerism through service citizen promotes that .overseas

Directors executive-non Independent

fellow a is Yip .Mr 2004. September 22 since INED an as appointed been has 64, aged ,On Tak Yip .Mr Hong of Institute Taxation ,HKICPA ,Accountants Certified Chartered of Association the of member Certified own his founded has Yip .Mr .Institute Securities Kong Hong the of member full a and ,Kong .,Co & Yip .O .T of director managing the is he and years 20 than more for firm Accountants Public the and ,Committee Education Civic District Tong Kwun of chairman-vice the also is Yip .Mr .Limited other held not has Yip .Mr .Council Action-Advice Neighborhood the ,institution charitable of chairman .years three last the in company listed in directorships

was Jing .Mr 2006. February 28 since INED an as appointed been has 45, aged ,Baoli Jing .Mr a acquired and 1987 in Laws in degree s'Bachelor a with School Law University Beijing from graduated he ,University Beijing from graduation After 1997. in University Lanzhou from Laws in degree s'Master .Mr 1997, In 1997. till positions various in worked and Province Gansu of Court High the to assigned was Firm Law Cheng Shuang Beijing joined he 1999, in and partner a as Firm Law Tianhe Gansu joined Jing .Guangdong ,Company Law Commercial China joined Jing .Mr 2007, August In .laws-at-attorney an as

vast has Bao .Mr 2007. February 1 since INED an as appointed been has 55, aged ,Ming Liang Bao .Mr in enterprises owned-state in directorships various held has He .experience management and executive .PRC the of Beijing and Tianjin

(Continued(DIRECTORS OF DETAILS BIOGRAPHICAL

Management Senior

Industries Forest Jaling of officer executive chief the as Guyana in stationed is Mei Jin Feng Madam chief and officer executive chief as served She .Company the of subsidiary owned wholly-non a .,Inc .experience management' years 19 over has and corporations scale-large of officer financial

CONTRACTS SERVICE' DIRECTORS

the by terminable not is which Company the with contract service a has Directors existing the of None .compensation statutory than other ,compensation of payment without year one within Company

THE AND EMPLOYEES PAID HIGHEST FIVE THE ,EMOLUMENT' DIRECTORS POLICY EMOLUMENT S'GROUP

out set are Group the in employees paid highest five the of and emolument' Directors the of Details employees its of scales pay that ensures Group The .Statements Financial the of 12 and 11 notes in remuneration s'Group the of framework general the within basis related-performance on rewarded are their to reference with Company the by determined is remuneration' Directors The .strategy ,benchmark remuneration ,profitability and performance s'Company the undertake to responsibilities .Company the of Committee Remuneration the of recommendation and conditions market prevailing

UNDERLYING ,SHARES IN POSITIONS SHORT AND INTEREST' DIRECTORS DEBENTURES AND SHARES

Company the by kept interest of register the to according 2011, March 31 at as ,below disclosed as Save the to known was as far so and") SFO "the (Ordinance Futures and Securities the of 336 Section under positions short or interest any held Company the of executive chief and Directors the of none ,Directors corporations associated its and Company the of debentures and shares underlying ,shares the on and Company the to notified be to required where) i (which) SFO the of XV Part of meaning the within( short and interests including (SFO the of XV Part of 8 and 7 Divisions to pursuant Exchange Stock the were) ii (or); SFO the of provisions such under have to deemed or taken were they which positions (iii (or; therein to referred register the in entered be to ,SFO the of 352 Section to pursuant ,required the (Issuers Listed of Directors by Transactions Securities for Code Model the to pursuant ,required were the and Company the to notified be to ,Rules Listing the of 10 Appendix in contained") Code Model" .Exchange Stock

UNDERLYING ,SHARES IN POSITIONS SHORT AND INTEREST' DIRECTORS (Continued(DEBENTURES AND SHARES

Company the of shares underlying and shares in positions Long

	Number	Shares of	Number underlying	of Shares	Total number Shares of and	Approximate percentage
Name Director of	personal interest	corporate interests	personal interest	corporate interests	underlying Shares held	) %( issued of share capital
.Mr Zhong Cao ) 1 note (	NIL	2,000,000,000	NIL	NIL	2,000,000,000	10.07
Fung .Mr Pong Tsun ) 2 note (	1,061,362,449	1,055,500,000	NIL	NIL	2,116,862,449	10.66
Tsang .Mr Ching Kam David ,	51,624,499	NIL	NIL	NIL	51,624,499	0.26

:Note

• in interested was Zhong Cao .Mr by owned wholly being") CRIL ("Limited International Rise Champion 1. CRIL .Company the of capital share issued the in 10.07% approximately representing ,Shares 2,000,000,000 section the in out set is Company the in shareholding its and Company the of shareholder substantial a is ."Shareholders Substantial "headed
• 1,055,500,000 in interested was Pong Tsun Fung .Mr by owned wholly being") OGL ("Limited Gain Ocean 2. substantial a is OGL .Company the of capital share issued the in 5.31% approximately representing ,Shares headed section the in out set is Company the in shareholding its and Company the of shareholder ."Shareholders Substantial"

in interest any had associates their and Company the of Directors the of none ,above disclosed as Save meaning the within ,corporations associated its and Company the of shares underlying or/and shares the Exchange Stock the and Company the to notified be to required were which ,SFO the of XV Part of under have to taken or deemed were they which interests including (SFO the of 341 section to pursuant in entered be to ,SFO the of 352 section to pursuant ,required were which or) SFO the of 344 section 2011. March 31 at as therein to referred register the

SIGNIFICANCE OF CONTRACTS IN INTERESTS' DIRECTORS

business s'Group the to relation in significance of contracts no ,Report Annual this in disclosed as Save material a had Director a which in and party a was subsidiaries its of any or Company the which to .year the during time any at or year the of end the at indirectly or directly whether ,interest

SHARES ACQUIRE TO RIGHTS' DIRECTORS

,Shares in Positions Short and Interest' Directors "headed paragraphs the under disclosed as Save by benefits acquire to rights were year the during time no at ,above" Debentures and Shares Underlying their or Directors any to granted Company the of debentures or in Shares of acquisition the of means or ,them by exercised rights such any were or ,age of years 18 under children or spouse respective any to party a subsidiaries fellow and subsidiaries its of any or ,company holding its ,Company the was .corporate body other any in rights such acquire to Directors the enable to arrangement

SHAREHOLDERS SUBSTANTIAL

the by kept interest of register the to according 2011, March 31 at as ,below disclosed as Save or person other no ,Directors the to known was as far so and SFO the of 336 Section under ,Company be to fall would which Shares underlying or Shares the in positions short or interest an had companies ,were who or SFO the of XV Part of 3 and 2 Divisions of provision the under Company the to disclosed carrying capital share of class any of value nominal the of more or 5% in interested ,indirectly or directly .Group the of members other any of meeting general at circumstances all in vote to rights

	Number	Shares of	Number underlying	of Shares	Total number Shares of and	Approximate percentage
of Name Shareholder	personal interest	corporate interests	personal interest	corporate interests	underlying Shares held	) %( issued of share capital
中聚國際控股有限公司 China( Alliance International Holding Group (Limited (a note(	NIL	4,275,862,068	NIL	NIL	4,275,862,068	21.54
Champion Rise International Limited (b note (	NIL	2,000,000,000	NIL	NIL	2,000,000,000	10.07
Ocean Gain Limited ) c note (	NIL	1,055,500,000	NIL	NIL	1,055,500,000	5.31
Allkeen Investments Limited (d note(	NIL	1,016,000,000	NIL	NIL	1,016,000,000	5.12
Vivid Beyond Securities Limited (e note(	NIL	NIL	NIL	2,500,000,000	2,500,000,000	12.59
Fresh Generation Development Limited (f note (	NIL	NIL	NIL	1,350,000,000	1,350,000,000	6.80
Sky Power Investments Limited (g note(	NIL	NIL	NIL	1,200,000,000	1,200,000,000	6.04

Shares in Position Long

(Continued(SHAREHOLDERS SUBSTANTIAL

(Continued (Shares in Position Long

:Notes

• .Lei Zhang .Ms by owned wholly is") Alliance China (".Ltd Group Holding International Alliance China .a
• an and Chairman the ,Zhong Cao .Mr by owned wholly is") CRIL ("Limited International Rise Champion .b above the in out set is Company the of shares underlying or shares in interest whose Director executive 8 On ."Debentures and Shares Underlying ,Shares in Positions Short and Interest' Directors "headed section converted were which CRIL to bonds convertible \$112,000,000HK transferred Alliance China 2010, November 2011. March 24 on Share per \$0.056HK at Shares ordinary 2,000,000,000 into
• of Chairman Vice the and Director executive an ,Pong Tsun Fung .Mr by owned wholly is Limited Gain Ocean .c section above the in out set is Company the of shares underlying or shares in interest whose Company the "Debentures and Shares Underlying ,Shares in Positions Short and Interest' Directors "headed
• .Yueyue Xu .Ms by owned wholly is Limited Investments Allkeen .d
• convertible \$140,000,000HK in interested was ,Wei Hu by owned wholly ,Limited Securities Beyond Vivid .e .Share per \$0.056HK at Shares 2,500,000,000 into convertible are which Company the by issued bonds
• \$75,600,000HK in interested was ,Zhuo Bing Hu by owned wholly ,Limited Development Generation Fresh .f per \$0.056HK at Shares 1,350,000,000 into convertible are which Company the by issued bonds convertible .Share
• convertible \$67,200,000HK in interested was ,Weidong Xu by owned wholly ,Limited Investments Sky Power .g .Share per \$0.056HK at Shares 1,200,000,000 into convertible are which Company the by issued bonds

positions short or interests any had persons other no 2011, March 31 at as ,above disclosed as Save as corporations associated its and Company the of debentures or shares underlying ,shares the in .SFO the of 336 Section under Company the by kept be to required register the in recorded

SCHEME OPTION SHARE

10 for force in remain shall and 2004 July 16 on adopted was Company the of Scheme Option Share The Option Share the of Particulars .amended or terminated otherwise unless date adoption the from years .Statements Financial the of 38 note in out set are Scheme

1. March 31 ended year the during lapsed or cancelled ,exercised ,granted been has option share No

SECURITIES LISTED THE OF FLOAT PUBLIC

,Board the of knowledge the within and Company the to information available publicly the on Based would which information any of aware is ,Report Annual this of date the to up ,Directors the of none .market open the in Shares its of float public sufficient maintained not has Company the indicate

CONTRACT MANAGEMENT

the of part substantial any or whole the of administration and management the concerning contract No .Company the of business

CODE MODEL THE

no terms on transactions securities' directors regarding conduct of code a adopted has Company The the and Rules Listing the of 10 Appendix in Code Model the in out set standard required the than less Code Model the in out set standard required the with complied have they that confirmed have Directors .transactions securities' Directors regarding conduct of code s'Company the and

COMMITTEE AUDIT

Listing the of requirements the with accordance in Committee Audit the established has Company The Tak Yip .Mr namely ,Directors executive-non independent all comprising ,Committee Audit The .Rules practice accounting s'Group the reviewing for responsible is ,Ming Liang Bao .Mr and Baoli Jing .Mr ,On .evaluation risk and control internal ,audit external the ,policies and

Audit the by reviewed been have 2011 March 31 ended year the for results annual s'Group The .Committee

COMMITTEE REMUNERATION

Governance Corporate the in out set is committee remuneration the to related information Detailed .herein 22 page on Report

AUDITORS

its for resolution a and retire shall which Limited BDO by audited been have statements financial The .Company the of meeting general annual forthcoming the at proposed be will reappointment

Board the of behalf On

Zhong Cao Chairman 2011 June 28 ,Kong Hong

throughout practices governance corporate of standard high a maintaining to committed is Board The of management the of transparency and accountability enhancing on emphasis with year financial this disclosed as Save .whole a as Shareholders the of interest the safeguarding of sake the for Company the Corporate on Code the in out set provisions code the with complied has Company the ,below herein ended year the for Rules Listing the of 14 Appendix in contained") Code CG "the (Practices Governance 2011. March 31

corporate and principles the on information with Shareholders provide to is report this of purpose The .Company the by adopted practices governance

BOARD THE

interest best the in managed properly is Company the that ensure to is Board the of duty principal The .Shareholders the of

Composition Board

namely ,Directors executive were three which of ,Directors seven were there 2011, March 31 at As David ,Ching Kam Tsang and) chairman-Vice the (Pong Tsun Fung ,)Chairman the (Zhong Cao Messrs Directors the of Details .Baoli Jing and Ming Liang Bao ,On Tak Yip Messrs ,namely Directors executivenon independent three and Bush Neil .Mr namely ,Director executive-non a ,)Director Finance the( a being of responsibilities and duties the regarding induction An .herein 12 and 11 pages on given are and interest of disclosure of duty ,Directors the to applicable regulations and laws relevant the ,Director .appointment their upon shortly Directors all to provided been has Group the of business

Board the and Chairman the of Roles The

vested is business s'Company the of management overall The .Chairman the by chaired is Board The of control and leadership for responsibility assumes who Chairman the by led is which Board the in is Chairman The .Company the of interests best the in acts Board the that ensure to Company the proposed matters any account into taking ,meeting Board each for agenda the setting for responsible all that ensures Chairman the ,staff secretarial s'Company the of support the With .Directors the by issues on briefed properly are and information reliable and complete ,sufficient receive members Board the that such ,advance in Directors the to materials dispatching by meetings Board at discussed be to .responsibility their discharge and effectively work could Directors

and management ,affairs s'Company the supervising for responsible collectively is Board the ,However ,policy accounting in changes significant ,statements financial ,budgets annual like Matters .operation of supervision ,policies and strategy management risk ,arrangements financing major ,contracts material .Board the for reserved all are ,Company the of performance and management the

independence and expertise its ensure to structure and composition its reviews regularly Board The to subject is vacancy casual a fill to Board the by appointed Director Any .maintained and attained are subject are Directors all and appointment his after meeting general first the at Shareholders of election ,eligible being ,and Association of Articles s'Company the with accordance in rotation by retirement to .election-re for themselves offer may

(Continued(BOARD THE

(Continued(Board the and Chairman the of Roles The

in otherwise or Director as interests their appointment first their on Board the to disclose Directors All the When .annually updated are interests of declarations such and organisations or companies other the by considered be to matter a in interest of conflict a having is Director any that considers Board to him require and interest his declare and disclose fully to Director such request will Board the ,Board .voting from abstain

s'Company the at ,means with Board the to made request reasonable upon provided are Directors All .necessary if duties their of furtherance in advice professional independent take to ,expense

Team Management its and Officer Executive Chief the of Roles The

have Company the of operation and administration ,management day-to-day the ,hand other the On Between 2010. November 19 since Zhong Cao .Mr ,")CEO ("officer executive chief the to delegated been heads Cao .Mr .Pong Tsun Fung .Mr by assumed was role CEO the 2010, November 18 and 2010 April 1 were tasks and functions delegated The .Board the of decisions implements and team management the .management of efficiency ensure to Board the by reviewed periodically and supervised

chairman the of roles the keep to Code CG the under expected is Company the that noted Board The power of balance a ensure to individual different by performed and separated officer executive chief and the of size the of view in Code CG the from deviate to chosen has Company the ,However .authority and caliber suitable with person a employing of difficulty and cost the and Group the of operation business .CEO of post the for

Director executive-non The

of issues on judgment bring to objective an with") NED ("Director executive-non in brings Board The at conduct of standards and appointments key ,resources ,accountability ,performance ,policy ,strategy ,above the of light In .interests of conflicts potential on lead the take to as well as meetings Board the in performance s'company the scrutinise to review under year the during NED a in brought Board the performance of reporting the monitoring and ,objectives and goals corporate agreed achieving

Directors executive-non independent The

a providing of function important the serve") INEDs "the (Directors executive-non independent The the and Shareholders of interests the safeguarding and Board the to experience and skills of balance has Company the ,Rules Listing the of) 2(3.10 and) 1(3.10 Rules to Pursuant .whole a as Company related or accounting or qualifications professional appropriate has whom of one ,INEDs three appointed .expertise management financial

terminated unless years two of term initial an for letter appointment an executed has INEDs the of Each ,INEDs the of each from ,received has Company The .term the of expiry the to prior writing in notice by of is Board The .Rules Listing the of 3.13 rule to pursuant independence his of confirmation annual an .Rules Listing the of 3.13 rule in out set guidelines independence the meet INEDs all that view the

(Continued(BOARD THE

Meetings Board

forth set were Directors of attendance the and year financial the during meetings eight held Board The :below

		Attended /
	Name of Directors	Eligible to Attend
Executive Directors	Cao Zhong	3/3
	Fung Tsun Pong	8/8
	Tsang Kam Ching David ,	8/8
-Non executive Directors	Ru Peng Chuan	0/2
	Neil Bush	0/1
Independent -non executive Directors	Yip On Tak	7/8
	Jing Baoli	7/8
	Bao Liang Ming	7/8

all and team secretarial s'Company the of services and advice the to access have Directors The sufficient with Drafts .followed are meetings board the of respect in regulations and rules applicable the to circulated were committees various the and Board of minutes the of versions final and details the by kept being ,minutes such of Originals .respectively record and comment their for Directors .Director any by notice reasonable on hours office at inspection for open are ,Secretary Company

with meetings Board regular also were 2 ,year financial the during held meetings Board the Amongst an and meeting the before days 14 least at Directors all to despatched meeting the of notice written Board regular The .meeting the to prior days 3 than less no documents supporting all with agenda Code CG the that note Directors The .Directors the of participation active achieved have meetings .intervals quarterly approximately at year a meetings regular 4 least at hold to Board the requires 4 considered Directors the ,year the during Group the of activities and size the of view in ,However the during convened meetings Board all to relation in rate attendance high very have Directors executivenon independent and Directors executive the all indeed and unnecessary be to meetings regular .year

(Continued(BOARD THE

(Continued(Meetings Board

has Board the which Board the by considered be to matter a in interest of conflict a has Director a If resolution proposed relevant the on voting from abstain will Director the ,material be to determined the in counted be not shall he that and interest material a have associates his of any or he which in .meeting Board the at present quorum

Code CG the in out set provisions code the with complied has Company the ,above disclosed as Save .year financial this for

Committees Board

Audit the and Committee Remuneration the :committees following the established has Board The good adopted also has Board the ,addition In .INEDs the all of participation the with Committee effective provide to steps appropriate taken and procedures and practices governance corporate .Shareholders with communication

COMMITTEE AUDIT

in them bring to 2005 September 26 on amended was Committee Audit the of reference of terms The three the all of consists and Board the to accountable is Committee Audit The .Code CG the with line .Ming Liang Bao and Baoli Jing ,On Tak Yip Messrs of namely INEDs

annual ,statements financial s'Company the of accuracy and completeness the reviewed Committee The documents these that Board the to assurance provided and reports year-half and accounts and reports Exchange Stock the ,practices and standards the ,policies accounting respective the with comply financial the of effectiveness and adequacy the reviewed also Committee The .requirements legal and on Board the to recommendation made also It .systems management risk and control internal ,controls the monitor as well as engagement of terms their and auditors external of removal and appointment the .required actions appropriate recommended and effectiveness and independence' auditors external

as were which of attendances the ,year financial the during meetings 2 held Committee Audit The .(2/2) Ming Liang Bao .Mr and) 2/2 (Baoli Jing .Mr ,)2/2 (On Tak Yip .Mr :follows

(Continued(COMMITTEE AUDIT

is 2011 March 31 ended year financial the for Committee Audit the by performed work the of summary A :below out set

• ;auditors external the of engagement of terms and remuneration the approve) a(
• ;process audit the of effectiveness the and independence' auditors external the review) b(
• ;auditors external of appointment-re the on Board the to recommendation make) c(
• and principles accounting the auditors external the or/and Director Finance the with review) d( financial interim and annual the of fairness and accuracy the ,Group the by adopted practices ;Board the to submission before statements
• ;plan audit internal and findings audit internal the review) e(
• of systems management risk and control internal ,control financial the of effectiveness the review) f( and; Group the
• and principles accounting the to amendments the of impact the auditors external the with review) g( .governance corporate of development the and Group the to standards

COMMITTEE REMUNERATION

on policy remuneration determine to 2005 September 26 on up set was Committee Remuneration The remuneration respective their fix and management senior and Director executive-non ,Directors executive of majority a .e.i ,Director executive one and INEDs three the all comprises Committee The .package responsible is Committee Remuneration The .Directors executive-non independent are members the for policy or framework the ,Board the with agreement the to subject ,determining ,others among ,for senior the and Director executive-non the ,Directors executive the ,Chairman the of remuneration the ,bonuses including package remuneration individual aggregate respective their and ,staff management .policy agreed the of terms the within awards share other or options share and payments incentive

competitive a provides Company the ,calibre suitable of staff retain and attract to able be to order In .bonus discretionary and passage leave ,fund provident ,salary comprises This .package remuneration and motivated ,stable a of maintenance the to considerably contributed has policy remuneration The .Company the in team management calibre-high

.year every Committee Remuneration the by reviewed were Director executivenon the and Directors executive the to paid remuneration of levels the and policy remuneration The

(Continued(COMMITTEE REMUNERATION

INEDs of remuneration The .remuneration own his about discussion any in part take shall Director No are INEDs the of Each .involved responsibility their of consideration in Board the by determined is \$120,000.00.HK of fee s'director annual an to entitled and service of term fixed a for appointed

as were which of attendance the ,year financial this during meeting 1 held Committee Remuneration The Liang Bao .Mr and) 1/1 (Baoli Jing .Mr ,)1/1 (On Tak Yip .Mr ,)1/1 (David ,Ching Kam Tsang .Mr :follows .(1/1) Ming

CONTROL INTERNAL

During .effectiveness its reviewing for and control internal of system the for responsible is Board The control internal the of effectiveness the on reviews two conducted have Directors the ,year financial this and controls compliance and operational ,financial ,to limited not but including ,Company the of systems and adequate and effective systems control internal the that considered and ,functions management risk the of view in Code CG the of control internal on provisions code the with complied has Company the .Company the of structure management the and development business latest

regarding Company the of employees all to available made and set been have guidelines control Detailed .information sensitive price of dissemination and handling

,business including ,risks major on report and control ,identify to place in are procedures and Systems the with Board the by monitored are risks these to Exposures .risks reputational and ,financial ,legal .advisers professional external its of assistance

TRANSACTIONS SECURITIES

the (directors by transactions securities the regarding conduct of code a adopted has Company The of copy A .Code Model the in out set standard required the than less no terms on") Code Securities" reminders thereafter and appointment his on first Director each to sent been has Code Securities the to meeting Board the of date the before month two namely ,annually twice Directors the to sent were cannot Directors the that notice a with ,results annual and interim s'Company the approve respectively been has announcement results the after until Company the of derivatives and securities the in deal .published

written dated a receive and Chairman the notify to required are Directors ,Code Securities the Under Chairman the of case the in ,and Company the of securities any in dealing before acknowledgement and Director executive another ,alternatively or meeting Board a at Board the notify must he ,himself enquiries specific made has Company The .dealing any before acknowledgement written dated a receive have they that confirmed have Directors all and Company the of securities the in dealings' Directors on 'Directors .year the throughout Code Securities the in out set standard required the with complied the within (corporations associated its and Company the of shares the in 2011 March 31 at as interests .Report Annual this of 14 and 13 pages on out set are) SFO the of XV Part of meaning

AUDITORS EXTERNAL

financial annual the on reporting and auditing for responsible primarily are auditors external The approximately was auditors external the to paid remuneration total the ,year financial this In .statements and service audit for paid respectively were \$233,000HK and \$1,230,000HK which of \$1,463,000,HK .services audit-non other and ,advice

RELATIONS INVESTOR

Extensive .investors its with communication and relationships enhance to continues Company The the and Report Annual this in provided activities and performance s'Company the about information .Shareholders the to sent been has which Report Interim

the to relating matters discuss to meeting general annual the attend to encouraged are Shareholders All .Board the to addressed be can Shareholders the from inquiries Any .Company

Article with accordance in convened be to meeting general extraordinary an request may Shareholders the of deposit of date the at holding members that provides which ,Association of Articles the of 73 voting of right the carrying Company the of capital up paid the of twentieth-one than less not requisition Company the or Board the to requisition written by ,right the have times all at shall meetings general at transaction the for Board the by convened be to meeting general extraordinary an require to ,Secretary .requisition such in specified business any of

convene to duly proceed requisition the of deposit of date the from days 21 within not do Directors the If as ,manner same the in meeting general the convene may themselves requisitionists the ,meeting the reasonable all and ,Directors the by convened be may meetings which in that as ,possible as nearly to reimbursed be shall Directors the of failure the of result a as requisitionists the by incurred expenses .Company the by them

REPORT S'AUDITOR INDEPENDENT

LIMITED GROUP RESOURCES TIMBER CHINA OF SHAREHOLDERS THE TO (中國木業資源集團有限公司( (liability limited with Islands Cayman the in incorporated(

the (Limited Group Resources Timber China of statements financial consolidated the audited have We 111, to 27 pages on out set") Group "the as to referred hereinafter (subsidiaries its and") Company" the 2011, March 31 at as position financial of statements company and consolidated the comprise which consolidated the ,income comprehensive of statement consolidated the ,statement income consolidated ,ended then year the for flows cash of statement consolidated the and equity in changes of statement .information explanatory other and policies accounting significant of summary a and

STATEMENTS FINANCIAL CONSOLIDATED THE FOR RESPONSIBILITY' DIRECTORS

statements financial consolidated of preparation the for responsible are Company the of directors The the by issued Standards Reporting Financial Kong Hong with accordance in view fair and true a give that Kong Hong the of requirements disclosure the and Accountants Public Certified of Institute Kong Hong enable to necessary is determine directors the as control internal such for and ,Ordinance Companies whether ,misstatement material from free are that statements financial consolidated of preparation the .error or fraud to due

RESPONSIBILITY S'AUDITOR

our on based statements financial consolidated these on opinion an express to is responsibility Our ,engagement our of terms the with accordance in ,body a as ,you to solely made is report This .audit other any to liability accept or towards responsibility assume not do We .purpose other no for and .report this of contents the for person

Hong the by issued Auditing on Standards Kong Hong with accordance in audit our conducted We ethical with comply we that require standards Those .Accountants Public Certified of Institute Kong the whether about assurance reasonable obtain to audit the perform and plan and requirements .misstatement material from free are statements financial consolidated

REPORT S'AUDITOR INDEPENDENT

disclosures and amounts the about evidence audit obtain to procedures performing involves audit An ,judgment s'auditor the on depend selected procedures The .statements financial consolidated the in ,statements financial consolidated the of misstatement material of risks the of assessment the including control internal considers auditor the ,assessments risk those making In .error or fraud to due whether view fair and true a give that statements financial consolidated of preparation s'entity the to relevant purpose the for not but ,circumstances the in appropriate are that procedures audit design to order in includes also audit An .control internal s'entity the of effectiveness the on opinion an expressing of accounting of reasonableness the and used policies accounting of appropriateness the evaluating consolidated the of presentation overall the evaluating as well as ,directors the by made estimates .statements financial

for basis a provide to appropriate and sufficient is obtained have we evidence audit the that believe We .opinion audit our

OPINION

of affairs of state the of view fair and true a give statements financial consolidated the ,opinion our In the for flows cash and loss s'Group the of and 2011 March 31 at as Group the of and Company the properly been have and Standards Reporting Financial Kong Hong with accordance in ended then year .Ordinance Companies Kong Hong the of requirements disclosure the with accordance in prepared

Limited BDO Accountants Public Certified

On Man Choi 02410P .:no Certificate Practising

2011 June 28 ,Kong Hong

STATEMENT INCOME CONSOLIDATED

2011 March 31 ended year the For

	Notes	2011 HK 000'\$	2010 HK 000'\$ ( Restated (
Turnover Cost sales of	5	13,332 (16,485)	21,171 (19,528)
Gross loss ( profit/) on Gain change fair in of value investment property )Loss( on gain/ change fair in value less to costs of sell	16	(3,153) 1,157	1,643 148
biological assets Change fair in of value derivative financial instrument Other income and other or gains losses Realised on gain financial assets fair at value through	20 24 7	(22,458) (67,726) 6,054	4,869 29,820 6,983
profit loss or Selling and administrative expenses Finance costs	8	— (71,208) (184)	729 (71,478) (9,633)
Loss before income tax expense Income tax expense	9 10	) (157,518 (12)	(36,919) 248
Loss for year the		) (157,530	(36,671)
Loss attributable :to Owners the of Company -Non controlling interests	13	153,670) ( (3,860)	(33,119) (3,552)
		) (157,530	(36,671)
		HK cents	HK cents
Loss per share attributable to owners the of Company Basic—	15	(1.026)	(0.31)
— Diluted		(1.026)	(0.49)

INCOME COMPREHENSIVE OF STATEMENT CONSOLIDATED

2011 March 31 ended year the For

	2011 HK 000'\$	2010 HK 000'\$ ( Restated (
Loss for year the	) (157,530	(36,671)
Other comprehensive :income Exchange differences on translation of financial statements of foreign operations	49,245	3,164
Other comprehensive income the for net ,year tax of	49,245	3,164
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	) 108,285 (	(33,507)
Total comprehensive income attributable to Owners the of Company -Non controlling interests	) 103,599 ( (4,686)	(30,645) (2,862)
	) 108,285 (	(33,507)

POSITION FINANCIAL OF STATEMENT CONSOLIDATED

2011 March 31 at As

	Notes	2011 HK 000'\$	2010 HK 000'\$ ( Restated (
-Non current assets
Investment property	16	49,800	44,900
Property plant , and equipment	17	134,260	131,492
Other properties under development	18	194,341	170,680
Prepaid lease payments	19	32,977	32,211
Biological assets	20	95,781	94,014
Forest concession rights	21	521,643	528,545
Long term prepayments	22	9,004	35,261
Derivative financial instrument	24	213,094	411,498
Total non current- assets		1,250,900	1,448,601
Current assets
Properties under development sale for	25	1,077,653	911,560
Inventories	26	135,232	128,646
Trade and other receivables	27	51,908	29,078
Prepaid lease payments	19	657	704
Cash and cash equivalents	28	591,575	19,759
Total current assets		1,857,025	1,089,747
Total assets		3,107,925	2,538,348
Current liabilities
Trade and other payables	29	92,722	50,778
Promissory note	30	284,797	59,930
Deferred government grant	31	9,277	8,915
Amount to due joint a venture partner	32	59,270	—
Amount a to due director	33	12,446	2,000
Borrowings	34	6,164	5,696
Total current liabilities		464,676	127,319
Net current assets		1,392,349	962,428
Total assets less current liabilities		2,643,249	2,411,029

POSITION FINANCIAL OF STATEMENT CONSOLIDATED

2011 March 31 at As

	Notes	2011 HK 000'\$	2010 HK 000'\$ ( Restated (
-Non current liabilities
Deferred tax liabilities	35	1,574	1,574
Deferred government grant	31	116,407	111,871
Convertible bond	36	263,112	361,205
Promissory note	30	—	177,332
Acreage fees payable		11,020	11,083
Total non current- liabilities		392,113	663,065
Total liabilities		856,789	790,384
Net assets		2,251,136	1,747,964
Capital and reserves attributable to owners the of Company
Share capital	37	198,429	144,129
Reserves		2,037,509	1,583,951
Equity attributable to owners the of Company		2,235,938	1,728,080
-Non controlling interests		15,198	19,884
Total equity		2,251,136	1,747,964

Board the of behalf On

Director Director

David ,Ching Kam Tsang .Mr Zhong Cao .Mr

POSITION FINANCIAL OF STATEMENT

2011 March 31 at As

	Notes	2011 HK 000'\$	2010 HK 000'\$
-Non current assets
Property plant , and equipment	17	213	137
Interests in subsidiaries	23	1,842,925	1,823,765
Derivative financial instrument	24	213,094	411,498
Total non current- assets		2,056,232	2,235,400
Current assets
Trade and other receivables	27	12,284	7,263
Cash and cash equivalents	28	559,582	801
Total current assets		571,866	8,064
Current liabilities
Trade and other payables	29	7,985	14,955
Promissory note	30	284,797	59,930
Amount a to due director	33	12,446	2,000
Total current liabilities		305,228	76,885
Net current (/asset liabilities (		266,638	(68,821)
Total assets less current liabilities		2,322,870	2,166,579
-Non current liabilities
Convertible bond	36	263,112	361,205
Promissory note	30	—	177,332
Total non current- liabilities		263,112	538,537
Total net assets		2,059,758	1,628,042
Capital and reserves
Share capital	37	198,429	144,129
Reserves		1,861,329	1,483,913
Total equity		2,059,758	1,628,042

Board the of behalf On

Director Director

EQUITY IN CHANGES OF STATEMENT CONSOLIDATED

2011 March 31 ended year the For

Group The

	Share capital 000'\$HK	Share premium HK 000'\$HK	Warrants reserve i (Note( ))	Capital redemption reserve '\$HK 000'\$	Capital reserve 000'\$HK 000	Assets revaluation reserve HK 000'\$HK	Forest rights revaluation reserve	Convertible bond reserve '\$HK 000'\$ ( Note	Translation reserve 000'\$HK 000 ((iii (Note)) (ii (	Retained profits HK 000'\$HK	Sub total	Non controlling interests '\$HK 000'\$	Total 000'\$HK 000
2009 April 1 At	101,370		4,000 —	3,800	20,918	23,868	76,213		14,951 —	806,300	1,051,420	22,971	1,074,391
year the for Loss Other comprehensive income		— —		— —		— —		— —		65,223) —	65,223) (	3,552) (	(68,775) (
year the for	—		— —		— —		— —		2,415 —		2,415 —		3,105 690
Total comprehensive income year the for change of Effect accounting in	—		— —		— —		— —		2,415 —	65,223)	62,808) (	2,862) (	(65,670) (
policy lease prepaid on payments		— —		— —		— —		— —		32,104 59	32,163		32,163 —
Total comprehensive income for restated as year the	—		— —		— —		— —		2,474 —	33,119)	30,645) (	2,862) (	(33,507) (
Disposal interest equity of subsidiary a in		— —		— —		— —		— —		— —		225) —	(225) (
shares of Issue acquisition the for subsidiaries of Issue bond convertible of	42,759	229,482	—		— —		— —		— —		272,241 —		272,241 —
(36 Note( of Release lapse upon reserve		— —		— —		— —		435,064 —	—		435,064 —		435,064 —
warrants of	—		4,000) —	— (		— —		— —		4,000 —	—		— —
March 31 At restated as 2010,	144,129	229,482		3,800 —	20,918	23,868	76,213	435,064	17,425	777,181	1,728,080	19,884	1,747,964
year the for Loss Other comprehensive income	—	— —	— —	— —	— —	— —	— —	— —	50,071 —	153,670) — —	153,670) (	3,860) ( ) 50,071	(157,530) ( 49,245 (826
Total comprehensive income year the for	—		— —		— —		— —		50,071 —	153,670)	103,599) (	4,686) (	(108,285) (
Placement less ,shares of expense placement	18,000	516,556	—		— —		— —		— —		534,556 —		534,556 —
shares of Issue conversion on convertible of Note (bond	33,429 (36	150,715		— —		— —		173,285) —	— (		10,859 —		10,859 —
shares of Issue of exercise on (40 Note (warrants	2,871	63,171	—		— —		— —		— —		66,042 —		66,042 —
2011 March 31 At	198,429	959,924		3,800 —	20,918	23,868	76,213	261,779	67,496	623,511	2,235,938	15,198	2,251,136

EQUITY IN CHANGES OF STATEMENT

2011 March 31 ended year the For

Company The

				Capital		Convertible
	Share capital 000'\$HK	Share premium 000'\$HK	Warrants reserve 000'\$HK i (Note( ))	redemption reserve 000'\$HK	Contributed surplus 000'\$HK ( Note (iv ( ))	bond reserve 000'\$HK ((iii (Note	Retained profits 000'\$HK	Total 000'\$HK
At 2009 April 1	101,370	—	4,000	3,800	64,314	—	741,016	914,500
Total comprehensive income year the for Issue shares of the for	—	—	—	—	—	—	6,237	6,237
acquisition of subsidiaries	42,759	229,482	—	—	—	—	—	272,241
of Issue convertible bond (36 Note(	—	—	—	—	—	435,064	—	435,064
Release reserve of lapse upon warrants of	—	—	(4,000)	—	—	—	4,000	—
31 At 2010 March Total comprehensive income	144,129	229,482	—	3,800	64,314	435,064	751,253	1,628,042
year the for	—	—	—	—	—	—	(179,741)	(179,741)
Placement shares of less , placement expense of Issue on shares conversion of convertible bonds	18,000	516,556	—	—	—	—	—	534,556
(36 Note(	33,429	150,715	—	—	—	(173,285)	—	10,859
Issue shares of exercise on warrants of (40 Note (	2,871	63,171	—	—	—	—	—	66,042
31 At 2011 March	198,429	959,924	—	3,800	64,314	261,779	571,512	2,059,758

:Notes

The .Company the of warrants of issue the from received proceeds net the represents reserve Warrant) i( .warrants the of exercise upon account premium share and capital share to transferred be will reserve

\$4,000,000HK of price issue an at warrants listed-un 960,000,000 issued Company the 2006, July 14 On initial an at share ordinary one for subscribe to holder the entitles warrant Each .placement private by of date the from period years three the during Share Subscription per \$0.09HK of price subscription 2009. July 31 on expiry upon lapsed warrants All .warrants the of issue and allocation

• the by issued bond convertible outstanding of component equity the represents reserve bond convertible The) ii( .(iii)(r(3 Note in bond convertible for adopted policy accounting the with accordance in recognised Company
• statements financial the of translation the from arising differences exchange all represents reserve Translation) iii( .operations foreign of
• 'shareholders consolidated the between difference the represents Company the of surplus contributed The) iv( s'Company the of amount nominal the and Company the by acquired were they when subsidiaries of funds .acquisition the for issued capital share

FLOWS CASH OF STATEMENT CONSOLIDATED

2011 March 31 ended year the For

	2011 HK 000'\$	2010 HK 000'\$ ( Restated (
Cash flows from operating activities
Loss before income tax expense	) (157,518	(36,919)
Adjustments :for
Interest income	(161)	(163)
Interest on promissory note	—	3,780
Interest on convertible bond	—	5,853
Depreciation of property plant , and equipment	11,269	10,411
Change fair in of value derivative financial instrument	67,726	(29,820)
on Gain change fair in of value investment property	(1,157)	(148)
(/Loss on) gain change fair in value less to costs of sell
biological assets	22,458	(4,869)
Realised on gain financial assets fair at value through
profit loss or	—	(729)
Release of deferred government grant	—	(338)
Release of prepaid lease payments	657	704
Amortisation of forest concession rights	6,896	2,214
Loss gain(/ on) deregistration a of subsidiary	27	(225)
/)Gain( on loss disposal of property plant , and
equipment net ,	(163)	53
Interest expense	184	—
Write down of inventories net ,	5,293	1,059
Operating loss before changes in working capital	(44,489)	(49,137)
Increase in inventories	(13,055)	(8,429)
Increase trade in and other receivables	(11,666)	(592)
Increase trade in and other payables	42,973	31,276
Decrease in acreage fees payable	(63)	(285)
Increase of biological assets to due plantation
expenditure incurred	(11,022)	(18,647)
Decrease of biological assets due direct to sales	1,409	1,568
of Effect foreign exchange difference	(331)	(6,176)
Cash in used operations	(36,244)	(50,422)
Interest received	161	163
Interest paid	(4,579)	—
Overseas tax paid ( refund/)	(12)	248
Net cash in used operating activities	(40,674)	(50,011)

FLOWS CASH OF STATEMENT CONSOLIDATED

2011 March 31 ended year the For

	2011 HK 000'\$	2010 HK 000'\$ ( Restated (
Cash flows from investing activities Purchase of property plant , and equipment Additions of properties under development sale for Additions other of properties under development Net decrease long in term prepayments Net cash outflow arising on acquisition of subsidiaries Receipts of deferred government grant Proceeds from disposal of property plant , and equipment Proceeds from disposal of financial assets at	(12,759) (48,792) (1,699) 1,746 — — 2,547	(30,637) — — 13,266 (47,888) 6,886 —
fair value through profit loss or	—	1,611
Net cash in used investing activities	(58,957)	(56,762)
Cash flows from financing activities Repayment of borrowings Proceeds from placement share of of net , placement expenses Proceeds from share issued upon exercise of warrants Proceeds from joint a venture partner Proceeds from borrowings Advance a from director	(5,696) 534,556 66,042 59,270 6,164 10,446	(14,212) — — — 5,696 2,000
Net cash generated from used(/ ) in financing activities	670,782	(6,516)
Net increase (/ decrease ) cash in and cash equivalents	571,151	) (113,289
Effect of foreign exchange rate changes cash on and cash equivalents	665	312
Cash and cash equivalents at beginning year of	19,759	132,736
Cash and cash equivalents end at year of representing cash and bank balances	591,575	19,759

2011 March 31 ended year the For

INFORMATION CORPORATE 1.

liability limited with Islands Cayman the in incorporated Company exempted an is Company The address The .")SEHK "the (Limited Kong Hong of Exchange Stock The on listed are shares its and George ,House Caledonian ,Limited Trust & Bank Caledonian of office the is office registered the of 1801-07, Room at located is business of place principal Its .Islands Cayman ,Cayman Grand ,Town .Kong Hong ,Wanchai ,Road Harbour 26 ,Building Resources China

and logging timber ,management and operation forest are Group the of activities principal The cold ,seedlings of trading and plantation ,products timber of sale ,processing timber ,trading .management asset and development property ,rental warehouse storage

STANDARDS REPORTING FINANCIAL KONG HONG OF ADOPTION 2. ("HKFRSs("

2010 April 1 effective — HKFRSs revised/new of Adoption) a(

HKFRSs ( Amendments )	Improvements to HKFRSs
Amendments HKAS to 32	Classification of Rights Issues
Amendments HKAS to 39	Eligible Hedged Items
Amendments to HKFRS 2	Share based- Payment — Group Cash settled- Share based-
	Payment Transactions
HKAS (27 ) Revised	Consolidated and Separate Financial Statements
HKFRS (3 ) Revised	Business Combinations
HK IFRIC( ) — Interpretation 17	Distributions Non of cash- Assets to Owners
HK Interpretation 5	Presentation of Financial Statements — Classification the by
	Borrower of Term a Loan that Contains a Repayment on
	Demand Clause

interpretations and standards revised/new these of adoption the ,below explained as Except .statements financial s'Group the on impact significant no has

2011 March 31 ended year the For

STANDARDS REPORTING FINANCIAL KONG HONG OF ADOPTION 2. (Continued") (HKFRSs("

(Continued(2010 April 1 effective — HKFRSs revised/new of Adoption) a(

Consolidated) — Revised (27 HKAS and Combinations Business) — Revised (3 HKFRS Statements Financial Separate and

are which ,statements financial the to 3 note in described are policies accounting revised The on beginning periods financial in effected combinations business for prospectively effective ,interest controlling-non of valuation the include 3 HKFRS in Changes 2009. July 1 after or of measurement subsequent and recognition initial the ,costs transaction for accounting the changes These .stages in achieved combinations business and consideration contingent a occurs acquisition an that period the in results the and goodwill of amount the impact financial the to impact no had has 3 HKFRS revised of adoption The .results future and .year the during transaction combination business no been has there as statements

without (subsidiary a of interest ownership the in change a that requires 27 HKAS revised The ,owners as capacity their in owners with transaction a as for accounted is) control of loss any and lost is control When .equity within recognised are transactions such ,accordingly in recognised is loss or gain a ,value fair to measured-re is entity the in interest remaining .year current the on impact no had has 27 HKAS revised of adoption The .loss or profit

Leases) — Amendments (17 HKAS

leases of classification regarding guidance specific deletes ,"Leases ",)amendment (17 HKAS .classification lease on guidance general the with inconsistency eliminate to as so ,land of using lease operating or finance either as classified be should land of leases ,result a As risks the all substantially transfers lease the whether .e.i 17, HKAS of principles general the land ,amendment the to Prior .lessee the to asset an of ownership to incidental rewards and was term lease the of end the by Group the to pass to expected not is title which interest lease the over amortised and ,"payments lease prepaid "under lease operating as classified .term

beginning periods annual for retrospectively applied been has) amendment (17 HKAS the of provisions transitional and date effective the with accordance in 2010 January 1 as rights use land unexpired of classification the reassessed has Group The .amendment and ,leases those of inception the at existing information of basis the on 2010 April 1 at remained") PRC "the (China of Republic s'People the in land leasehold the considered any reclassified not has Group the ,reassessment the of result a As .lease operating as .lease finance to lease operating from land leasehold

2011 March 31 ended year the For

STANDARDS REPORTING FINANCIAL KONG HONG OF ADOPTION 2. (Continued") (HKFRSs("

(Continued(2010 April 1 effective — HKFRSs revised/new of Adoption) a(

the by Classification — Statements Financial of Presentation — 5 Interpretation HK Clause Demand on Repayment a Contains that Loan Term a of Borrower

of Presentation — 1 HKAS ,standard existing an of clarification a is Interpretation The loan term a that HKICPA the by reached conclusion the out sets It .Statements Financial repayment demand to right unconditional the lender the gives which clause a contains which of) d(69 paragraph with accordance in liability current a as classified be shall time any at .cause without clause the invoke will lender the that probability the of irrespective 1 HKAS

financial the to impact no has 5 Interpretation HK of requirements the of adoption The .statements

effective yet not are but issued been have that HKFRSs revised/New) b(

,statements financial s'Group the to relevant potentially ,HKFRSs revised/new following The .Group the by adopted early been not have and effective yet not are but ,issued been have

HKFRSs ( Amendments )	2&20101 Improvements to HKFRSs
HK IFRIC( ) — Interpretation 19	1 Extinguishing Financial Liabilities with Equity Instruments
HKAS (24 ) Revised	2 Related Party Disclosures
Amendments to HKFRS 7	3Assets Disclosures — Transfers of Financial
Amendments HKAS to 12	4Assets Deferred — Tax Recovery of Underlying
HKFRS 9	5 Financial Instruments

• 2013 January 1 after or on beginning periods annual for Effective ⁵ 2012 January 1 after or on beginning periods annual for Effective ⁴ 2011 July 1 after or on beginning periods annual for Effective ³ 2011 January 1 after or on beginning periods annual for Effective ² 2010 July 1 after or on beginning periods annual for Effective ¹

2011 March 31 ended year the For

STANDARDS REPORTING FINANCIAL KONG HONG OF ADOPTION 2. (Continued") (HKFRSs("

(Continued(effective yet not are but issued been have that HKFRSs revised/New) b(

for provides also It .parties related of definition the simplifies and clarifies) Revised (24 HKAS transactions for entities related-government to disclosure party related of exemption partial a significantly or controlled jointly ,controlled are that entities or government same the with .government same the by influenced

transfer for requirements disclosure derecognition the improve 7 HKFRS to amendments The understand better to statements financial of users allow and assets financial of transactions The .assets transferred on entity the with remain may that risks any of effects possible the transfer of amount disproportionate a if disclosures additional require also amendments .period reporting a of end the around undertaken are transactions

value fair at measured assets financial into classified are assets financial 9, HKFRS Under financial the managing for model business s'entity the on depending cost amortised at or gains value Fair .assets financial the of characteristics flow cash contractual the and assets ,investments equity trade-non those for except loss or profit in recognised be will losses or comprehensive other in losses and gains the recognise to choice a have will entity the which financial for requirements measurement and recognition the forward carries 9 HKFRS .income value fair at designated are that liabilities financial for except 39, HKAS from liabilities in change to attributable value fair in change of amount the where ,loss or profit through would that unless income comprehensive other in recognised is liability that of risk credit in requirements the retains 9 HKFRS ,addition In .mismatch accounting an enlarge or create .liabilities financial and assets financial of derecognition for 39 HKAS

property investment an that presumption rebuttable a introduce 12 HKAS to amendments The is property investment the if rebutted is presumption This .sales through entirely recovered is substantially consume to is objective whose model business a within held is and depreciable than rather ,time over property investment the in embodied benefits economic the of all .retrospectively applied be will amendments The .sale through

/new these of impact potential the of assessment an making of process the in is Group The revised/new these of application the that concluded far so directors the and HKFRSs revised .statements financial s'Group the on impact material no have will HKFRSs

2011 March 31 ended year the For

POLICIES ACCOUNTING PRINCIPAL 3.

.below out set is Group the by adopted policies accounting significant of summary A

compliance of Statement) a(

Hong ,HKFRSs applicable all with accordance in prepared been have statements financial The referred collectively hereinafter (Interpretations and") HKASs ("Standards Accounting Kong .Ordinance Companies Kong Hong of requirements disclosure the and") HKFRSs "the as to Rules the by required disclosures applicable include statements financial the ,addition In .Limited Kong Hong of Exchange Stock The on Securities of Listing the Governing

measurement of Basis) b(

for except basis cost historical under prepared been have statements financial The financial derivative ,equipment and plant ,property in included buildings ,property investment or values fair ,amounts revalued at measured are which ,assets biological and ,instruments .below out set policies accounting the in explained as sell to costs less value fair

policies accounting in Changes) c(

held is which rights use land for policy accounting its changed Group the ,year the During for or services or goods of production in use or sale subsequent and development for .purposes administrative

of definition the meet sale subsequent and development for held are which rights use Land ."Leases "17 HKAS under land leasehold and" Inventories "2 HKAS under inventories both as classified were sale subsequent and development for held rights use land ,Previously the of period the over basis line straight a on amortised were and payments leases prepaid development the during land leasehold of Amortisation 17. HKAS with accordance in lease charges Amortisation .property the of costs construction the of part as capitalised was phase in recognised were property the of completion following and development to prior incurred held is which rights use land ,policy accounting in change the to Subsequent .loss or profit properties "in included and inventories as classified are sale subsequent and development for cost of lower the at measured and 2 HKAS with accordance in" sale for development under .value realisable net and

of element an constitute rights use land for payments that considered directors the ,Also Subsequent .equipment and plant ,property constructed-jointly or constructed-self for costs subsequent and development for held rights use land ,policy accounting in change the to other "in included are purposes administrative or services or goods of production in use less cost at measured and 16 HKAS with accordance in" development under properties other on made is amortisation for provision No .any if ,losses impairment accumulated any are and completed are assets relevant the as time such until development under properties .use intended for available

2011 March 31 ended year the For

(Continued(POLICIES ACCOUNTING PRINCIPAL 3.

(Continued(policies accounting in Changes) c(

relevant more a in results rights use land of classification new the that believes Management The .year the for performance its of and ,Group the of position financial the of presentation rights use land the of use the regarding intention s'management reflects treatment revised .practices industry the with consistent presentation a in results and

accordance in retrospectively for accounted been has policy accounting in change The the and" Errors and Estimates Accounting in Changes ,Policies Accounting "8 HKAS with charged amortisation the reversing by restated been have statements financial consolidated :follows as is statements financial consolidated the on effect The .years prior in

	31 at As March
	2011 000'\$HK	2010 000'\$HK
Increase other in properties under development non— current-	194,341	170,680
Increase in properties under development for — sale current	—	911,560
Decrease in prepaid lease payment non — current-	174,665	1,050,077
Increase in retained profits	19,188	32,104
Increase in translation reserve	488	59

	For year the ended 31 March
	2011 000'\$HK	2010 000'\$HK
Decrease in selling and administrative expenses	19,188	32,104
Decrease loss in attributable to owners the of Company Decrease in per loss share basic ( and ) diluted	19,188 0.13 cents	32,104 0.3 cents

above the effect to statements financial these in restated been have comparatives 2010 The would restatement this ,"Statements Financial of Presentation "1 HKAS Under .adjustments 1 at as position financial of statement consolidated a of presentation the require ordinarily published previously the on effect no have would restatement the as ,However 2009. April consider not do directors the ,date that at as position financial of statement consolidated it presented not have ,consequence in ,and information additional any provide would this that .statements financial these in

currency presentation and Functional) d(

as same the is which ,")\$HK ("dollars Kong Hong in presented are statements financial The .Company the of currency functional the

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

accounting Group) e(

consolidation of basis and combination Business) i(

the of statements financial the comprise statements financial consolidated The balances and transactions company-Inter .")Group "the (subsidiaries its and Company in full in eliminated are profits unrealised with together companies group between eliminated also are losses Unrealised .statements financial consolidated the preparing in ,transferred asset the on impairment of evidence provides transaction the unless .loss or profit in recognised is loss the case which

the in included are year the during of disposed or acquired subsidiaries of results The acquisition of dates effective the from income comprehensive of statement consolidated adjustments ,necessary Where .appropriate as ,disposal of dates effective the to up or policies accounting their bring to subsidiaries of statements financial the to made are .Group the of members other by used those with line into

2010 April 1 from combination Business

.method acquisition the using for accounted is businesses or subsidiaries of Acquisition fair date-acquisition the of aggregate the at measured is acquisition an of cost The ,Group the by issued interests equity and incurred liabilities ,transferred assets of value principally are assumed liabilities and acquired assets identifiable The .acquirer the as interest equity held previously s'Group The .value fair date-acquisition at measured gains resulting the and value fair date-acquisition at measured-re is acquiree the in the at or value fair at either interest controlling-non the measure to ,basis transactionby-transaction a on ,elect may Group The .loss or profit in recognised are losses or costs related-Acquisition .assets net identifiable s'acquiree the of share proportionate .expensed are incurred

at recognised is acquirer the by transferred be to consideration contingent Any recognised are consideration to adjustments Subsequent .value fair date-acquisition within obtained information new from arise they that extent the to only goodwill against about) date acquisition the from months 12 of maximum a (period measurement the contingent to adjustments subsequent other All .date acquisition the at value fair the .loss or profit in recognised are liability a or asset an as classified consideration

control of loss a in result not do that subsidiaries in interests s'Group the in Changes interest s'Group the of amounts carrying The .transactions equity as for accounted are relative their in changes the reflect to adjusted are interest controlling-non the and received or paid consideration the of value fair the and adjusted is interest controllingnon the which by amount the between difference Any .subsidiaries the in interests .Company the of owners to attributed and equity in directly recognised is

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (accounting Group) e(

(Continued (consolidation of basis and combination Business) i(

(Continued (2010 April 1 from combination Business

is disposal on loss or profit the ,subsidiary a of control loses Group the When the of value fair the of aggregate the) i (between difference the as calculated previous the) ii (and interest retained any of value fair the and received consideration and subsidiary the of liabilities and ,)goodwill including (assets the of amount carrying comprehensive other in recognised previously Amounts .interest controlling-non any be would as manner same the in for accounted are subsidiary the to relation in income .of disposed were liabilities or assets relevant the if required

the is interest controlling-non of amount carrying the ,acquisition to Subsequent share s'interest controlling-non the plus recognition initial at interests those of amount deficit a having interest controlling-non the in results this if even interests controllingnon to attributed is income comprehensive Total .equity in changes subsequent of .balance

2010 April 1 to prior combination Business

measured are subsidiaries relevant the of liabilities and assets the ,acquisition On shareholders minority of interest The .acquisition of date the at values fair their at liabilities and assets the of values fair the of proportion s'minority the at stated is .recognised

equity or debt of issue the with associated those than other ,costs Transaction were combinations business with connection in incurred Group the that ,securities .acquisition the of cost the of part as capitalised

equity the in interest s'minority the exceed minority the to applicable losses Where are ,minority the to applicable losses further any and ,excess the ,subsidiary a of a has minority the that extent the to except interest s'group the against charged .losses the cover to investment additional make ,to able is and ,to obligation binding such all allocated is interest s'group the ,profits reports subsequently subsidiary the If been has Group the by absorbed previously losses of share s'minority the until profits .recovered

as interests minority with transactions treating of policy a applies Group The in result interests minority to Disposals .Group the to external parties with transactions minority from Purchases .loss or profit in recognised are Group the for losses and gains and paid consideration any between difference the being ,goodwill in result interests .subsidiary the of assets net of amount carrying the of acquired share relevant the

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (accounting Group) e(

Subsidiaries) ii(

Control .control exercise to able is Company the which over entity an is subsidiary A the govern to power the has ,indirectly or directly ,Company the where achieved is .activities its from benefits obtain to as so entity an of policies operating and financial into taken are exercisable presently are that rights voting potential ,control assessing In .account

stated are subsidiaries in investments ,position financial of statement s'Company the In by for accounted are subsidiaries of results The .any if ,loss impairment less cost at .receivable and received dividend of basis the on Company the

currency Foreign) f(

balances and Transactions

exchange the using currency functional the into translated are transactions currency Foreign resulting losses and gains exchange Foreign .transactions the of dates the at prevailing rates at ruling rates the at translation the from and transactions such of settlement the from foreign in denominated liabilities and assets monetary of period reporting the of end the are that value fair at carried items monetary-Non .loss or profit in arerecognised currencies when date the at prevailing rates the at retranslated are currencies foreign in denominated historical of terms in measured are that items monetary-Non .determined was value fair the .retranslated not are currency foreign a in cost

retranslation the on and ,items monetary of settlement the on arising differences Exchange arising differences Exchange .period the for loss or profit in included are ,items monetary of loss or profit in included are value fair at carried items monetary-non of retranslation the on in items monetary-non of retranslation the on arising differences for except period the for such For .income comprehensive other in recognised are losses and gains which of respect other in recognised also is loss or gain that of component exchange any ,items monetary-non .income comprehensive

consolidation On

a of currency the has which of none (entities group of position financial and results The presentation the from different currency functional a have that) economy hyperinflationary :follows as currency presentation the into translated are currency

end the at rate closing the at translated are operations foreign of liabilities and assets) i( ;period reporting the of

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (currency Foreign) f(

(Continued (consolidation On

• exchange average the at translated are operations foreign of expenses and income) ii( the of approximation reasonable a not is average this unless (year the for rates income case which in ,dates transaction the on prevailing rates the of effect cumulative and); transactions the of dates the at translated are expenses and
• and income comprehensive other in recognised are differences exchange resulting all) iii( .reserve translation of heading the under equity in accumulated

financial separate' entities group of loss or profit in recognised differences Exchange net s'Group the of part forming items monetary term-long of translation the on statements income comprehensive other to reclassified are concerned operation foreign the in investment operation foreign a When .consolidation on reserve translation as equity in accumulated and as statement income consolidated the to reclassified are differences exchange such ,sold is .sale on loss or gain the of part

treated are entity foreign a of acquisition the on arising adjustments value fair and Goodwill prevailing exchange of rate the at translated and entity foreign the of liabilities and assets as translation in recognised are arising differences Exchange .period reporting the of end the at .reserve

equipment and plant ,Property) g(

at stated are progress in construction and buildings than other equipment and plant ,Property comprises assets of cost The .losses impairment any and depreciation accumulated less cost working its to asset the bringing of costs attributable directly any and price purchase its been has asset the after incurred Expenditure .use intended its for location and condition loss or profit to charged normally is ,maintenance and repairs as such ,operation into put that demonstrated clearly be can it where situations In .incurred is it which in period the in be to expected benefits economic future the in increase an in resulted has expenditure the as capitalised is expenditure the ,equipment and plant ,property the of use the from obtained .asset that of cost additional an

less revaluation the of date the at value fair its being ,amount revalued at stated is Building .losses impairment accumulated subsequent and depreciation accumulated subsequent any amount carrying the that ensure to regularity sufficient with performed are Revaluations end the at values fair using determined be would which that from materially differ not does other in recognised are revaluation on arising value in Increases .period reporting the of revaluation asset of heading the under equity in accumulated and income comprehensive on arising value in Decreases .equity in changes of statement consolidated per reserve same the of respect in valuations earlier on increases against offset first are revaluation recognised are increases subsequent Any .loss or profit in recognised thereafter and property revaluation asset the to thereafter and charged previously amount the to up loss or profit in .reserve

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (equipment and plant ,Property) g(

previous of respect in realised reserve revaluation the of portion relevant the ,disposal Upon .profits retained to reserve revaluation asset the from released is valuations

each of valuation or cost the off write to basis line-straight the on calculated is Depreciation useful estimated The .life useful estimated its over progress in construction than other asset reporting each of end the at reviewed are method depreciation and values residual ,lives The .basis prospective a on for accounted estimate in changes any of effect the with ,period :follows as are purpose this for used rates annual principal

Buildings	4%
Leasehold improvements	20%
Furniture , machinery and equipment	20%
Motor vehicles	20%
Vessels	10%

in recognised equipment and plant ,property a of retirement or disposal on loss or gain The the of amount carrying the and proceeds sales net the between difference the is loss or profit .asset relevant

of course the in equipment and plant ,property represents progress in Construction stated is progress in Construction .purposes use own its for or production for construction construction of costs the includes Cost .any if ,losses impairment accumulated less cost at period the during assets these finance to used borrowings from arising charges interest and made is depreciation for provision No .any if ,testing and installation or construction of are and completed are assets relevant the as time such until progress in construction on .use intended for available

is amount carrying its if amount recoverable its to immediately down written is asset An .amount recoverable estimated s'asset the than higher

payment lease Prepaid) h(

basis line-straight a on amortised is lease operating an under land acquiring of cost The under properties as classified are lands the where except term lease the of period the over .((o(3 Note (development under properties other or)) n(3 Note (sale for development

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

property Investment) i(

for or appreciation capital for or rentals earn to either held property is property Investment supply or production the in use ,business of course ordinary the in sale for held not but ,both cost at measured is property Investment .purposes administrative for or services or goods of in recognised therein change any with value fair at subsequently and recognition initial on .loss or profit

net the between difference the is property investment an of disposal on loss or gain The .loss or profit in recognised is and ,property the of amount carrying the and proceeds sales

rights concession Forest) j(

value fair the being ,cost at stated are Group the by acquired licenses concession Forest any and amortisation accumulated less combination business a in acquisition of date the at in trees harvest to rights the Group the give licenses These .losses impairment accumulated .Guyana in area designated in forests concession allocated the

Forestry Guyana to payable fees acreage the include rights concession forest of costs The research other and geophysical ,geological ,exploratory necessary of costs ,Commission .right the obtaining to prior incurred studies

from rights concession forest of method amortisation the revised Group the ,year the During remaining the over method line-straight to volume on based method production of units the .life useful

:follows as are lives useful The 21. Note in out set is change such of effect and details The

the of period license remaining the Over rights concession Forest rights concession Forest

goodwill excluding assets intangible and tangible of Impairment) k(

tangible its of amounts carrying the reviews Group the ,period reporting each of end the At have assets those that indication any is there whether determine to assets intangible and exists longer no recognised previously loss impairment an or loss impairment an suffered asset the of amount recoverable the ,exists indication such any If .decreased have may or not is it Where .)any if (loss impairment the of extent the determine to order in estimated is estimates Group the ,asset individual an of amount recoverable the estimate to possible a Where .belongs asset the which to unit generating-cash the of amount recoverable the also are assets corporate ,identified be can allocation of basis consistent and reasonable smallest the to allocated are they otherwise or ,units generating-cash individual to allocated be can basis allocation consistent and reasonable a which for units generating-cash of group .identified

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued(goodwill excluding assets intangible and tangible of Impairment) k(

use for available yet not assets intangible and lives useful indefinite with assets Intangible be may asset the that indication an is there whenever and ,annually impairment for tested are .impaired

In .use in value and sell to costs less value fair of higher the is amount Recoverable value present their to discounted are flows cash future estimated the ,use in value assessing of value time the of assessments market current reflects that rate discount tax-pre a using have flows cash future of estimates the which for asset the to specific risks the and money .adjusted been not

than less be to estimated is) unit generating-cash or (asset an of amount recoverable the If reduced is) unit generating-cash or (asset the of amount carrying the ,amount carrying its ,loss or profit in immediately recognised is loss impairment An .amount recoverable its to loss impairment the case which in ,amount revalued a at carried is asset relevant the unless .decrease revaluation a as treated is

extent the to ,amount recoverable its of estimate revised the to increased is) unit generatingcash or (asset the of amount carrying the ,reverses subsequently loss impairment an Where have would that amount carrying the exceed not does amount carrying increased the that generating-cash or (asset the for recognised been loss impairment no had determined been or profit in immediately recognised is loss impairment an of reversal A .years prior in) unit of reversal the case which in ,amount revalued a at carried is asset relevant the unless ,loss .increase revaluation a as treated is loss impairment the

assets Biological) l(

transformation the of activities agricultural the in involved plants living are assets Biological .assets biological additional into or sale for produce agricultural into assets biological of costs less value fair at measured are ,seedlings and produce agricultural ,assets Biological less value fair The .period reporting each of end the at and recognition initial at sell to further for produce agricultural of cost the as deemed is harvest of time the at sell to costs .applicable if ,processing

to reference with produce agricultural or asset biological a for exists market active an If in price quoted the ,crops the of yield expected and condition growing ,specie comparable does market active an If .asset that of value fair the determining for adopted is market that has there that provided ,price transaction market recent most the uses Group the ,exist not and date transaction the between circumstances economic in change significant a been not reflect to adjusted assets similar for prices market the or ,period reporting the of end the and recognition initial on arising loss or gain The .values fair determine to differences profit in recognised is assets biological of sell to costs less values fair in changes subsequent forestry as produce agricultural the of sale the Upon .arises it which in period the in loss or .statement income the in sales of cost to transferred is amount carrying the ,products

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (assets Biological) l(

incurrence cost initial since place taken transformation biological little have that Seedlings .loss impairment any less cost at stated are

operations controlled Jointly) m(

controlled jointly to relation in incurs it that liabilities and controls Group the that Assets an on position financial of statement consolidated s'Group the in recognised are operations income of share s'Group The .item the of nature the to according classified and basis accrual are incurs it that expenses the with together operations controlled jointly from earns it that the with associated benefits economic that probable is it when loss or profit in included .Group the from/to flow will transaction

sale for development under Properties) n(

realisable net and cost of lower the at stated are sale for development under Properties sold properties of proceeds sale the to reference by determined is value realisable Net .value variable applicable less ,conditions market prevailing under business of course ordinary the in .completion to costs anticipated the and expenses selling

,costs construction ,rights use land of cost comprises property of cost Development assets qualifying for capitalised costs borrowing ,equipment and machinery of depreciation properties the ,completion On .period development the during incurred fees professional and .sale for held properties completed to transferred are

construction the when assets current as classified are sale for development under Properties property relevant the of period construction the unless commences properties relevant the of .cycle operation normal beyond complete to expected is project development

development under properties Other) o(

,losses impairment accumulated less cost at stated are development under properties Other ,costs construction ,rights use land of cost comprises property of cost Development .any if assets qualifying for capitalised costs borrowing ,equipment and machinery of depreciation properties the ,completion On .period development the during incurred fees professional and on made is depreciation for provision No .equipment and plant ,property to transferred are and completed are assets relevant the as time such until development under properties other .use intended for available are

is amount carrying its if amount recoverable its to immediately down written is asset An .amount recoverable estimated s'asset the than higher

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

Inventories) p(

is value realisable Net .value realisable net and cost of lower the at stated are Inventories of costs estimated the less ,business of course ordinary the in price selling estimated the .expenses selling and completion

of costs all comprises and formula cost average weighted the using calculated is Cost their to inventories the bringing in incurred costs other and conversion of costs ,purchase those of amount carrying the ,sold are inventories When .condition and location present is revenue related the which in period the in expense an as recognised is inventories all and value realisable net to inventories of down-write any of amount The .recognised loss or down-write the when period the in expense an as recognised are inventories of losses increase an from arising ,inventories of down-write any of reversal any of amount The .occurs recognised inventories of amount the in reduction a as recognised is ,value realisable net in .occurs reversal the which in period the in expense an as

the at sell to costs less value fair its is assets biological from harvested timber of cost The .assets biological for policy accounting the with accordance in determined ,harvest of date .loss or profit in recognised is harvest of date the through value in change Any .))l(3 Note(

assets Financial) q(

for purpose the on depending ,recognition initial at assets financial its classifies Group The initially are loss or profit through value fair at assets Financial .acquired was asset the which plus value fair at measured initially are assets financial other all and value fair at measured .assets financial the of acquisition the to attributable directly are that costs transaction a on derecognised and recognised are assets financial of sales or purchases way Regular asset financial a of sale or purchase a is sale or purchase way regular A .basis date trade established frame time the within asset the of delivery require terms whose contract a under are assets Financial .concerned marketplace the in convention or regulation by generally :classification their on depending ,follows as for accounted subsequently

loss or profit through value fair at assets Financial) i(

classified are assets Financial .trading for held assets financial include assets These .term near the in sale of purpose the for acquired are they if trading for held as for held as classified also are ,derivatives embedded separated including ,Derivatives .instruments hedging effective as designated are they unless trading

loss or profit through value fair at assets financial ,recognition initial to Subsequent the in loss or profit in recognised value fair in changes with ,value fair at measured are .arise they which in period

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (assets Financial) q(

receivables and Loans) ii(

are that payments determinable or fixed have that receivables other and Trade and Loans .receivables and loans as classified are market active an in quoted not less ,method interest effective the using cost amortised at measured are receivables ,rate interest effective the applying by recognised is income Interest .impairment any .immaterial be would interest of recognition the when receivables term-short for except

assets financial on loss Impairment) iii(

assessed are ,loss or profit through value fair at those than other ,assets Financial are assets Financial .period reporting each of end the at impairment of indicators for that events more or one of result a as that evidence objective is there when impaired cash future estimated the ,asset financial the of recognition initial the after occurred .impacted been have assets financial the of flows

:include could impairment of evidence Objective

• or; counterparty or debtor the of difficulty financial significant—
• principal or interest in delinquency or default as such ,contract of breach a or; payments
• or; difficulty financial s'debtor of because debtor a to concession granting—
• financial other or bankruptcy enter will debtor the that probable becoming it— .reorganisation

except ,directly assets corresponding the against off written are losses Impairment whose ,receivables other and trade of respect in recognised losses impairment for for losses impairment the ,case this In .remote not but doubtful considered is recovery satisfied is Group the When .account allowance an using recorded are debts doubtful trade against off written is irrecoverable considered amount the ,remote is recovery that relating account allowance the in held amounts any and directly receivables other and the to charged previously amounts of recoveries Subsequent .reversed are debt that to the in changes Other .account allowance the against reversed are account allowance directly off written previously amounts of recoveries subsequent and account allowance .loss or profit in recognised are

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (assets Financial) q(

method interest Effective) iv(

a of cost amortised the calculating of method a is method interest effective The effective The .period relevant the over income interest allocating of and asset financial through receipts cash future estimated discounts exactly that rate the is rate interest .period shorter a ,appropriate where or ,asset financial the of life expected the

assets financial of Derecognition) v(

future the to rights contractual the when asset financial a derecognises Group The been has asset financial the when or expire asset financial the to relation in flows cash with accordance in derecognition for criteria the meets transfer the and transferred 39. HKAS

Group the by issued instruments equity and liabilities Financial) r(

to according classified are entity group a by issued instruments equity and liabilities Financial financial a of definitions the and into entered arrangements contractual the of substance the .instrument equity an and liability

the of assets the in interest residual a evidences that contract any is instrument equity An of respect in adopted policies accounting The .liabilities its of all deducting after Group :below out set are instruments equity and liabilities financial

instruments Equity) i(

net ,received proceeds the at recorded are Company the by issued instruments Equity .costs issue direct of

liabilities Financial) ii(

promissory and borrowings ,payables other and trade including ,liabilities Financial interest effective the using ,cost amortised at measured subsequently are ,note .method

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (Group the by issued instrument equity and liabilities Financial) r(

bond Convertible) iii(

redemption ,component liability contain that Company the by issued bond Convertible initial on items respective into separately classified are component equity and option redeem early to option s'Company the represents option redemption The .recognition redemption and component liability the both ,issue of date the At .date maturity before option redemption and liability the of value fair The .value fair at recognised are option convertible-non similar of rate interest market prevailing the using determined are the of amount the deducting by determined is component equity The .instruments compound the of value fair the from option redemption and component liability bond convertible as equity in included and recognised is This .whole a as instrument .remeasured subsequently not is and ,effects tax income of net ,reserve

is bond convertible the of component liability the ,periods reporting subsequent In is option redemption The .method interest effective the using cost amortised at carried equity The .loss or profit in recognised value fair in change with value fair at measured ordinary into component liability the convert to option the by represented component conversion the until reserve bond convertible the in remain will Company the of shares value carrying the and reserve bond convertible the ,case which in ,exercised is option and capital share to transferred is ,conversion of time the at component liability the of option conversion the Where .issued shares the for consideration as premium share bond convertible the in stated balance the ,date maturity the at unexercised remains or profit in recognised is loss or gain No .profits retained to released be will reserve .option conversion the of expiration or conversion upon loss

method interest Effective) iv(

a of cost amortised the calculating of method a is method interest effective The The .period relevant the over expense interest allocating of and liability financial payments cash future estimated discounts exactly that rate the is rate interest effective shorter a ,appropriate where or ,liability financial the of life expected the through .period

liabilities financial of Derecognition) v(

s'Group the ,when only and ,when liabilities financial derecognises Group The .expired or cancelled ,discharged are obligations

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

equivalents cash and Cash) s(

and ,banks with call at held deposits and hand on cash comprise equivalents cash and Cash less or months three of maturities original with investments liquid highly term-short other insignificant an to subject are and cash of amount known a to convertible readily are that integral an form and demand on repayable are that overdrafts Bank .value in changes of risk cash and cash of component a as included also are management cash s'Group the of part .flows cash of statement the of purpose the for equivalents

Borrowings) t(

Transaction .incurred costs transaction of net ,value fair at initially recognised are Borrowings disposal of issue ,acquisition the to attributable directly are that costs incremental are costs ,agents to paid commissions and fees including ,liability financial or asset financial a of ,exchanges securities and agencies regulatory by levies ,dealers and brokers ,advisers any ,cost amortised at stated subsequently are Borrowings .duties and taxes transfer and is value redemption the and) costs transaction of net (proceeds the between differences interest effective the using borrowings the of period the over loss or profit in recognised .method

to right unconditional an has Group the unless liabilities current as classified are Borrowings .period reporting the of end the after months 12 least at for liability the of settlement defer

Taxation) u(

.tax deferred and tax current comprise year the for taxes Income

are that items for adjusted activities ordinary from loss or profit the on based is tax Current rates tax using calculated is and purposes tax income for disallowable or assessable-non .period reporting of end the at enacted substantively or enacted been have that

amounts carrying the between differences temporary of respect in recognised is tax Deferred amounts corresponding the and purposes reporting financial for liabilities and assets of affect that liabilities and assets recognised and goodwill for Except .purposes tax for used temporary all for recognised are liabilities tax deferred ,profits taxable nor accounting neither taxable that probable is it that extent the to recognised are assets tax Deferred .differences .utilised be can differences temporary deductible which against available be will profits liability the when period the in apply to expected rates tax the at measured is tax Deferred substantively or enacted been have that rates tax on based realised is asset the or settled is .period reporting of end the at enacted

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (Taxation) u(

investments on arising differences temporary taxable for recognised are liabilities tax Deferred able is Group the where except ,entities controlled jointly and associates ,subsidiaries in temporary the that probable is it and difference temporary the of reversal the control to .future foreseeable the in reverse not will difference

recognised items to relate they when except loss or profit in recognised are taxes Income other in recognised also are taxes the case which in income comprehensive other in .income comprehensive

benefits Employee) v(

entitlements leave Employee) i(

they when recognised are leave service long and leave annual to entitlements Employee leave annual for liability estimated the for made is provision A .employees to accrue of end the to up employees by rendered services of result a as leave service long and .period reporting the

the until recognised not are leave maternity and leave sick to entitlements Employee .leave of time

schemes benefits Retirement) ii(

schemes retirement contribution defined in participate subsidiaries PRC s'Company The are employees PRC the of All .PRC the in authorities government local the by organised their at salaries basic their of portion fixed a to equivalent pension annual an to entitled certain contribute to required are subsidiaries PRC s'Company The .dates retirement to employees PRC their of salaries basic the of 20% to 17% from ranged percentage .benefits retirement-post for obligation further no have and schemes retirement the in payable become they as Group the of loss or profit to charged are contributions The .scheme of rules the with accordance

retirement Fund Provident Mandatory contribution defined a operates Group The Schemes Fund Provident Mandatory the under") Scheme MPF "the (scheme benefit on based made are Contributions .Kong Hong in employees its of all for ,Ordinance as loss or profit to charged are and salaries basic' employees the of percentage a assets The .Scheme MPF the of rules the with accordance in payable become they independently an in Group the of those from separately held are Scheme MPF the of employees the with fully vest contributions employer s'Group The .fund administered .Scheme MPF the into contributed when

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (benefits Employee) v(

payments based-Share) iii(

similar providing others and employees to payments based-share settled-Equity .date grant the at instruments equity the of value fair the at measured are services

payments based-share settled-equity the of date grant the at determined value fair The increase corresponding a with period vesting the over loss or profit in recognised is vesting market-Non .equity within reserve compensation based share employee the in instruments equity of number the adjusting by account into taken are conditions cumulative the ,ultimately ,that so period reporting each of end the at vest to expected that options of number the on based is period vesting the over recognised amount the of value fair the into factored are conditions vesting Market .vest eventually made is charge a ,satisfied are conditions vesting other all as long As .granted options cumulative The .satisfied are conditions vesting market the whether of irrespective .condition vesting market a achieve to failure for adjusted not is expense

increase the ,vest they before modified are options of conditions and terms the Where ,modification the after and before immediately measured ,options the of value fair the in .period vesting remaining the over loss or profit in recognised also is

at measured are parties other with transactions payments based-share settled-Equity cannot value fair the where except ,received services or goods the of value fair the equity the of value fair the at measured are they case which in ,reliably estimated be the or goods the obtains entity the date the at measured ,granted instruments .service the renders counterparty

liabilities contingent and Provision) w(

as) constructive or legal (obligation present a has Group the when recognised are Provisions ,obligation the settle to required be will Group the that probable is it ,event past a of result a .obligation of amount the of made be can estimate reliable a and

to required consideration the of estimate best the is provision a as recognised amount The and risks the account into taking ,period reporting of end the at obligation present the settle flows cash the using measured is provision a Where .obligation the surrounding uncertainties those of value present the is amount carrying its ,obligation present the settle to estimated .flows cash

be to expected are provision a settle to required benefits economic the of all or some When certain virtually is it if asset an as recognised is receivable the ,party third a from recovered measured be can receivable the of amount the and received be will reimbursement that .reliably

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (liabilities contingent and Provision) w(

amount the or ,required be will benefits economic of outflow an that probable not is it Where the unless ,liability contingent a as disclosed is obligation the ,reliably estimated be cannot existence whose ,obligations Possible .remote is benefits economic of outflow of probability are events future more or one of occurrence-non or occurrence the by confirmed be only will benefits economic of outflow of probability the unless liabilities contingent as disclosed also .remote is

recognition Revenue) x(

is Revenue .receivable or received consideration the of value fair the at measured is Revenue .allowances similar other and returns customers estimated for reduced

• of rewards and risks significant the when recognised is goods of sales from Revenue) i( .buyer the to transferred been have ownership
• the over installments equal in recognised is leases operating from income Rental) ii( is basis alternative an where except ,term lease the by covered periods accounting leased the of use the from derived be to benefits of pattern the of representative more part integral an as loss or profit in recognised are granted incentives Lease .assets as recognised are rentals Contingent .receivable payments lease net aggregate the of .earned are they which in period accounting the in income
• the account into taking ,basis proportion time a on recognised is income Interest) iii( .applicable rates interest effective the and outstanding amounts principal
• is payment receive to rights' shareholders the when recognised is income Dividend) iv( .established

Leases) y(

substantially transfer lease the of terms the whenever leases finance as classified are Leases as classified are leases other All .lessee the to ownership of rewards and risks the all .leases operating

lessor as Group The

amount the at receivables as recorded are leases finance under lessees from due Amounts accounting to allocated is income lease Finance .leases the in investment net s'Group the of investment net s'Group the on return of rate periodic constant a reflect to as so periods .leases the of respect in outstanding

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

(Continued (Leases) y(

(Continued (lessor as Group The

basis line-straight a on loss or profit in recognised is leases operating from income Rental arranging and negotiating in incurred costs direct Initial .lease relevant the of term the over as recognised and asset leased the of amount carrying the to added are lease operating an .term lease the over basis line-straight the on expense an

at value fair their at Group the of assets as recognised are leases finance under held Assets .payments lease minimum the of value present the at ,lower if ,or lease the of inception the financial of statement consolidated the in included is lessor the to liability corresponding The finance between apportioned are payments Lease .obligation lease finance a as position on interest of rate constant a achieve to as so obligation lease the of reduction and charges ,loss or profit to directly charged are charges Finance .liability the of balance remaining the in capitalised are they case which in ,assets qualifying to attributable directly are they unless .costs borrowing on policy general s'Group the with accordance

basis line-straight a on loss or profit to charged are leases operating under payable Rentals enter to incentive an as receivable and received Benefits .lease relevant the of term the over term lease the over expense rental of reduction a as recognised are lease operating an into .basis line-straight a on

costs Borrowing) z(

of production or construction ,acquisition the to attributable directly costs Borrowing get to time of period substantial a take necessarily that assets are which ,assets qualifying as time such until ,assets those of cost the to added are ,sale or use intended their for ready earned income Investment .sale or use intended their for ready substantially are assets the qualifying on expenditure their pending borrowings specific of investment temporary the on .capitalisation for eligible costs borrowing the from deducted is assets

are they which in period the in loss or profit in recognised are costs borrowing other All .incurred

2011 March 31 ended year the For

(Continued (POLICIES ACCOUNTING PRINCIPAL 3.

grants Government) aa(

be will they that assurance reasonable is there when recognised are grants Government that Grants .them to attaching conditions the with comply will Group the that and received loss or profit in revenue as recognised are incurred expenses for Group the compensate that Grants .incurred are expenses the which in periods same the in basis systematic a on the of amount carrying the from deducted are asset an of cost the for Group the compensate the of life useful the over loss or profit in recognised effectively are consequently and asset .expense depreciation reduced of way by asset

OF SOURCES KEY AND JUDGEMENTS ACCOUNTING CRITICAL 4. UNCERTAINTY ESTIMATION

make to required are directors the ,policies accounting s'Group the of application the In that liabilities and assets of amounts carrying the about assumptions and estimates ,judgements based are assumptions associated and estimates The .sources other from apparent readily not are differ results Actual .relevant be to considered are that factors other and experience historical on .estimates these from

to Revisions .basis ongoing an on reviewed are assumptions underlying and estimates The revision the if revised is estimate the which in period the in recognised are estimates accounting affects revision the if periods future and revision the of period the in or ,period that only affects .periods future and current both

the to adjustment material a causing of risk significant a have that assumptions and estimates The :below discussed are year financial next the within liabilities and assets of amounts carrying

equipment and plant ,property of lives Useful) a(

depreciation related and lives useful estimated the determines management s'Group The historical the on based is estimate This .equipment and plant ,property its for charges and nature similar of equipment and plant ,property of lives useful actual the of experience competitor and innovations technical of result a as significantly change could It .functions depreciation the increase will Management .cycles industry severe to response in actions strategic-non or obsolete technically previously than less are lives useful where charges .sold or abandoned been have that assets

2011 March 31 ended year the For

OF SOURCES KEY AND JUDGEMENTS ACCOUNTING CRITICAL 4. (Continued (UNCERTAINTY ESTIMATION

tax Income) b(

is judgement Significant .jurisdictions several in taxes income to subject is Group The transactions are There .taxes income for provision worldwide the determining in required ordinary the during uncertain is determination tax ultimate the which for calculations and based issues audit tax anticipated for liabilities recognises Group The .business of course these of outcome tax final the Where .due be will taxes additional whether of estimates on impact will differences such ,recorded initially are that amounts the from different is matters is determination such which in period the in provisions tax deferred and tax income the .made

estimation value Fair) c(

in traded not are that Group the by held instruments financial derivative of value fair The of variety a used Group The .techniques valuation using by determined is market active an of end the at existing conditions market on based are that assumptions made and methods used are ,flows cash discounted estimated as such ,techniques Other .period reporting each .instruments financial remaining the for value fair determine to

are payables and receivables trade of adjustments credit estimated less value nominal The disclosure for liabilities financial of value fair The .values fair their approximate to assumed market current the at flows cash contractual future the discounting by estimated is purpose .instruments financial similar for Group the to available is that rate

assets biological of value Fair) d(

at assets biological of sell to costs less prices market current the estimates Management .valuations professional and prices market to reference with period reporting each of end the produce agricultural underlying the of prices market in changes volatile anticipated-Un .periods accounting future in losses measurementre value fair in result and assets biological these of values fair the affect significantly could

and wind ,fire from hazards agricultural usual the to subject is business forestry s'Group The .efficiency harvest affect also may rainfall and temperature as such nature of Forces .insects relevant the and place in are measures preventive adequate considers Management to ,Nevertheless .exposure minimising in assist will PRC the in laws forestry under legislation in result may produce agricultural harvestable affecting factors anticipated-un that extent the .periods accounting future in losses harvest or measurement-re

2011 March 31 ended year the For

OF SOURCES KEY AND JUDGEMENTS ACCOUNTING CRITICAL 4. (Continued (UNCERTAINTY ESTIMATION

inventories of value realisable Net) e(

each of end the at inventories other and timber of conditions the reviews Management items inventory moving-slow and obsolete for allowances make and ,period reporting .market the in sales or/and production in use for suitable longer no are that identified of experience historical the and conditions market current on based are estimates These market in change of result a as significantly change could It .nature similar of goods selling .period reporting of end the at estimations the reassess will Management .condition

other and sale for development under properties on value realisable net Estimated) f( development under properties

under properties s'Group the for made be should allowances whether determining In into takes Group the ,development under properties other and sale for development the .e.i (value market estimated the and environment market current the consideration to costs estimated less) expenses selling of costs estimated less price selling estimated less is value market estimated the if made is allowance An .properties the of completion development under properties on value realisable net actual the If .amount carrying the than change of result a as expected than less is development under properties other and sale for material ,cost development budgeted the in variation significant or/and condition market in under properties the for amount carrying The .result may losses impairment for provision amount carrying the and) \$911,560,000HK 2010: (\$1,077,653,000HK is sale for development .(\$170,680,000HK 2010: (\$194,341,000HK is development under properties other the for

TURNOVER 5.

rental and sold goods of value invoiced net the represents ,revenue the also is which ,Turnover recognised revenue of category significant each of amounts The .Group the by earned income :follows as are year the during

2011 000'\$HK	2010 000'\$HK
607 2,617	11,855 2,528
1,797	5,125 981
759	682 21,171
	7,552 13,332

2011 March 31 ended year the For

INFORMATION SEGMENT 6.

business each as separately managed are segments The .segments reportable four has Group The summary following The .strategies business different requires and products different offers :segments reportable s'Group the of each in operations the describes

• plantation tree ,concession forest from logs timber of sales trading and logging Timber seedlings of sales and ,suppliers outside and area
• of sales and handicrafts and furniture of sale and manufacture the operation timber Other oil tea refined
• management asset and development Property—
• leasing warehouse storage Cold—

other and equivalents cash and cash and instrument financial derivative exclude assets Segment .basis group a on managed are assets these as assets corporate and office head unallocated

other and bond convertible and note promissory ,liabilities tax deferred exclude liabilities Segment .basis group a on managed are liabilities these as liabilities corporate and office head unallocated

Segment Reportable) a(

revenue Central .)Nil \$HK 2010: (year the during transfer or sale segment-inter no was There the in included not are they as segments operating the to allocated not are expenses and for makers decision operating chief the by used is that loss' segments the of measure .performance segment of assessment

2011 March 31 ended year the For

(Continued (INFORMATION SEGMENT 6.

(Continued(Segment Reportable) a(

2011 March 31 ended year the For

	Timber logging trading and 000'\$HK	Other timber operation 000'\$HK	Property development asset and management 000'\$HK	Cold storage warehouse leasing 000'\$HK	Total 000'\$HK
REVENUE Revenue external from customers segment-Inter revenue	3,224 —	9,349 —	— —	759 —	13,332 —
Reportable segment revenue	3,224	9,349	—	759	13,332
Reportable segment profit/)loss (	(15,506)	(26,221)	(1,911)	15	(43,623)
Reportable segment assets	582,035	307,811	1,259,518	68,734	2,218,098
Reportable segment liabilities	(12,042)	(61,726)	(211,091)	(230)	(285,089)
Other segment information
Additions property of and plant , equipment Unallocated additions property of and plant , equipment	—	5,620	365	—	5,985 6,774
Total additions property of and plant , equipment					12,759
Additions other of properties under development	—	—	16,739	—	16,739
Additions biological of assets	21,269	1,757	—	—	23,026
Depreciation and impairment loss ,property of and plant equipment Unallocated depreciation and impairment loss ,property of and plant equipment	2,532	3,817	54	—	6,403 4,866
Total depreciation and impairment loss ,property of and plant equipment					11,269
Amortisation of lease prepaid payments Unallocated amortisation of lease prepaid payments	—	577	—	—	577 80
Total amortisation of lease prepaid payments					657

2011 March 31 ended year the For

(Continued (INFORMATION SEGMENT 6.

(Continued(Segment Reportable) a(

(Continued (2011 March 31 ended year the For

	Timber logging trading and 000'\$HK	Other timber operation 000'\$HK	Property development asset and management 000'\$HK	Cold storage warehouse leasing 000'\$HK	Total 000'\$HK
Amortisation forest of concession rights	6,896	—	—	—	6,896
Gain change on value fair in investment of property	—	—	—	1,157	1,157
Loss change on value fair in costs less of sell to biological assets	(20,338)	(2,120)	—	—	(22,458)
down Write inventories of net ,	—	(5,293)	—	—	(5,293)
Interest income Unallocated interest income	1	34	123	—	158 3
interest Total income					161
Interest term short on borrowing	184	—	—	—	184
Income expense tax	—	12	—	—	12

2011 March 31 ended year the For

(Continued (INFORMATION SEGMENT 6.

(Continued(Segment Reportable) a(

2010 March 31 ended year the For

	Timber logging trading and 000'\$HK	Other timber operation 000'\$HK	Property development asset and management 000'\$HK Restated( )	Cold storage warehouse leasing 000'\$HK	Total 000'\$HK ( (Restated
REVENUE Revenue external from customers Inter segment- revenue	14,383 —	6,106 —	— —	682 —	21,171 —
Reportable segment revenue	14,383	6,106	—	682	21,171
Reportable loss segment	(17,370)	(18,859)	—	(59)	(36,288)
Reportable segment assets	817,218	80,971	1,084,392	44,900	2,027,481
Reportable segment liabilities	(41,514)	(15,555)	(113,907)	(198)	(171,174)
Other segment information
Additions property of and plant , Equipment Unallocated additions property of and plant , equipment	1,005	29,132	—	—	30,137 14,275
Total additions property of and plant , equipment					44,412
Additions other to properties under development	—	—	170,785	—	170,785
Additions biological of assets	6,724	11,923	—	—	18,647
Depreciation and impairment loss ,property of and plant equipment Unallocated depreciation and impairment of loss property and plant , equipment	3,869	2,263	1	1	6,134 4,277
Total depreciation and impairment loss ,property of and plant equipment					10,411
Amortisation prepaid of lease payments Unallocated amortisation prepaid of lease payments	623	—	—	—	623 81
Total amortisation prepaid of lease payments					704

2011 March 31 ended year the For

(Continued (INFORMATION SEGMENT 6.

(Continued(Segment Reportable) a(

(Continued (2010 March 31 ended year the For

	Timber logging trading and 000'\$HK	Other timber operation 000'\$HK	Property development asset and management 000'\$HK	Cold storage warehouse leasing 000'\$HK	Total 000'\$HK
Amortisation forest of concession rights	2,214	—	—	—	2,214
Gain in change on of value fair investment property	—	—	—	148	148
Gain change on value fair in costs less of sell to biological assets	4,869	—	—	—	4,869
Write of down inventories net ,	—	(1,059)	—	—	(1,059)
Interest income Unallocated interest income	59	85	—	—	144 19
interest Total income					163
Over provision income of expense tax	(248)	—	—	—	(248)

2011 March 31 ended year the For

(Continued (INFORMATION SEGMENT 6.

liabilities and assets ,loss segment reportable of Reconciliation) b(

	2011 000'\$HK	2010 000'\$HK ( Restated (
Reportable segment loss before income tax expense on Gain change fair in of value investment property )Loss( on gain/ change fair in value less costs sell to	(43,623) 1,157	(36,288) 148
of biological assets Change fair in of value derivative financial instrument Other income and other or gains losses Realised on gain financial assets fair at value	(22,458) (67,726) 5,511	4,869 29,820 6,592
through profit loss or Unallocated corporate expenses Finance costs	— (30,195) (184)	729 (33,156) (9,633)
Consolidated loss before income tax expense	) (157,518	(36,919)
	2011 000'\$HK	2010 000'\$HK ( Restated (
:Assets Reportable segment assets Derivative financial instrument Cash and cash equivalents Unallocated corporate assets	2,218,098 213,094 591,575 85,158	2,027,481 411,498 19,759 79,610
Consolidated total assets	3,107,925	2,538,348
Liabilities : Reportable segment liabilities Deferred tax liabilities Promissory note Convertible bond Unallocated corporate liabilities	285,089 1,574 284,797 263,112 22,217	171,174 1,574 237,262 361,205 19,169
Consolidated total liabilities	856,789	790,384

2011 March 31 ended year the For

(Continued (INFORMATION SEGMENT 6.

information Geographical) c(

China of Republic s'People the — areas geographical principal four in operates Group The .Guyana and Australia ,Kong Hong ,")PRC "the) (Kong Hong excluding(

and customers external from revenue s'Group the of analysis an provides table following The .("assets current-non Specified ("instruments financial than other assets current-non

	Revenue from external customers		Specified non current- assets
	2011 000'\$HK	2010 000'\$HK	2011 000'\$HK	2010 000'\$HK ( Restated (
PRC Hong Kong Australia Guyana	11,966 — 759 607	8,355 3,191 682 8,943	435,510 13,369 49,800 539,127	430,136 14,016 44,900 548,051
	13,332	21,171	1,037,806	1,037,103

customers major about Information) d(

with customers) two 2010: (four were there and diversified not is base customer s'Group The 2010:) one from Revenues .revenues s'Group the of 10% exceeded have transactions whom \$1,702,000HK approximately was segment trading and logging timber the in customer) one timber other from customers) one 2010: (three from revenues and) \$5,536,000HK 2010:( .(\$4,134,000HK 2010: (\$6,193,000HK approximately was segment operation

LOSSES OR GAINS OTHER AND INCOME OTHER 7.

:comprises losses or gains other and income Other

	2011 000'\$HK	2010 000'\$HK
Interest income Exchange net ,gain /)Loss( on gain deregistration a of subsidiary on Gain disposal of property plant , and equipment Others	161 5,041 (27) 163 716	163 6,453 225 — 142
	6,054	6,983

2011 March 31 ended year the For

COSTS FINANCE 8.

	2011 000'\$HK	2010 000'\$HK
Interest short on term borrowings wholly repayable
within five years	184	—
Interest expenses on convertible bond maturing
within five years	47,839	5,853
Interest expenses on promissory note maturing
within five years (i note (	47,535	3,780
Total borrowing cost	95,558	9,633
:Less Amount capitalised (ii note (	(95,374)	—
	184	9,633

:Notes

• note promissory the of interest and principal the of payment on defaulted Group the ,year the During .i ,default of date the to up interest imputed of comprised year current the for expense Interest .)30 Note( resulting date maturity to interest imputed remaining of recognition early and thereafter interest coupon .payment of default from
• qualifying on expenditure to borrowings specific on arose year the during capitalised costs Borrowing .ii .assets

EXPENSE TAX INCOME BEFORE LOSS 9.

:charging after stated is expense tax income before Loss

	2011 000'\$HK	2010 000'\$HK ( Restated (
Auditor s' remuneration	1,230	1,200
Depreciation of property plant , and equipment (i note (	11,269	10,411
Amortisation of forest concession rights included in selling and administrative expenses	6,896	2,214
Amortisation of prepaid lease payments (ii note (	657	704
of Cost inventories and timber harvested :
Upon— sales	11,192	18,469
Write— of down inventories	5,293	1,059
Staff (costs excluding director s' remuneration :(
— Salaries and allowances (iii note (	15,648	25,437
— Defined contribution pension cost	286	357

2011 March 31 ended year the For

(Continued (EXPENSE TAX INCOME BEFORE LOSS 9.

:follows as is equipment and plant ,property of depreciation s'Group the of analysis An :)i (Note

	2011 000'\$HK	2010 000'\$HK
Amounts included in biological assets Amounts included cost in sales of Amounts included selling in and administrative expenses	180 506 10,583	157 291 9,963
	11,269	10,411

:follows as is payments lease prepaid of amortisation s'Group the of analysis An :)ii (Note

	2011 000'\$HK	2010 000'\$HK ( (Restated
Amounts included in biological assets Amounts included selling in and administrative expenses	536 121	582 122
	657	704

of cost the in included been has) \$2,025,000HK 2010: (\$1,032,000HK of allowances and Salaries :)iii (Note .statement income consolidated the of face the on sales

EXPENSE TAX INCOME 10.

:comprises expense tax income The

	2011 000'\$HK	2010 000'\$HK
PRC enterprise income tax — current year over— provision in , respect prior of years	12 —	— (248)
Income tax expense	12	(248)

2011 March 31 ended year the For

(Continued(EXPENSE TAX INCOME 10.

income consolidated the per loss the to reconciled be can year the for expense tax income The :follows as statement

	2011 000'\$HK	2010 000'\$HK ( Restated (
Loss before income tax expense	) (157,518	(36,919)
Tax calculated at 16.5% Over provision prior in years Net effect -non of /taxable deductible items Net effect tax of losses and temporary differences	(25,990) — 21,085	(6,092) (248) (4,510)
not recognised Tax effect tax on exemption granted PRC by tax authority Effect of different tax of rates subsidiaries operating other in jurisdictions	8,165 (260) (2,988)	14,086 (369) (3,115)
Income tax expense	12	(248)

estimated the on) 16.5% 2010: (16.5% is tax profits Kong Hong for rate tax statutory The tax profits Kong Hong for provision No .year the during Kong Hong in arising profits assessable the during tax profits Kong Hong to subject income any earn not did Group the as made been has 2010. and 2011 March 31 ended years

No .)45% 2010: (45% of rate a at tax income Guyana to liable are Guyana in subsidiaries The for losses sustained Guyana in subsidiaries the as made been has tax income Guyana for provision 2010. and 2011 March 31 ended years the for purposes taxation

No .)30% 2010: (30% of rate a at tax income Australian to liable are Australia in subsidiaries The sustained Australian in subsidiaries the as made been has tax income Australian for provision 2010. and 2011 March 31 ended years the for purposes taxation for losses

6 on Law Tax Income Corporate the to Rules Implementation the released Council State The entity an ,Rules Implementation the to According .")Rules Implementation "the (2007 December tax income enterprise PRC from exemption full to entitled is business forestry in engaged 有限公)大埔(樹人木業 namely ,Group the of subsidiaries Two 2008. January 1 from commencing tax local the by enterprise operation forestry as qualified are 有限公司)大埔(樹人苗木組培 and 司 .tax income enterprise PRC from exempted fully are they so and authorities

the to applicable rates tax income corporate statutory the 2011, March 31 ended year the For .(25% 2010:) 25% is PRC the in operating and established subsidiaries

2011 March 31 ended year the For

REMUNERATION' DIRECTORS 11.

:below shown are director each of remuneration of Details

2011 March 31 ended Year

of Name director	Fees 000'\$HK	Basic ,salaries allowances and other benefits 000'\$HK	Retirement benefit scheme contributions 000'\$HK	Total 000'\$HK
Executive directors
Cao (i (Zhong	—	1,320	5	1,325
Fung Tsun Pong	—	3,380	12	3,392
Tsang Kam Ching David ,	—	2,300	12	2,312
-Non executive directors
Ru Peng Chuan (ii (	—	—	—	—
Neil (iii (Bush	—	—	—	—
Independent -non executive directors
Yip On Tak	120	—	—	120
Jing Baoli	120	—	—	120
Bao Liang Ming	120	—	—	120
	360	7,000	29	7,389

2010 March 31 ended Year

of Name director	Fees 000'\$HK	Basic ,salaries allowances and other benefits 000'\$HK	Retirement benefit scheme contributions 000'\$HK	Total 000'\$HK
Executive directors
Fung Tsun Pong	—	3,600	12	3,612
Sing Lau ,Hung Stephen (iv (	—	3,000	10	3,010
Tsang Kam Ching David ,	—	1,800	12	1,812
Chow ,Shui Ki (v (Louie	—	1,650	11	1,661
Independent -non executive directors
Yip On Tak	120	—	—	120
Jing Baoli	120	—	—	120
Bao Liang Ming	120	—	—	120
	360	10,050	45	10,455

2011 March 31 ended year the For

(Continued(REMUNERATION' DIRECTORS 11.

:Note

• 2010 November 19 on appointed) i(
• 2010 December 17 on resigned and 2010 November 19 on appointed) ii(
• 2010 December 7 on appointed) iii(
• 2010 January 29 on resigned) iv(
• 2010 February 28 on resigned) v(

the to Group the by paid were emoluments no 2010, and 2011 March 31 ended years the During .office of loss for compensation as or ,Group the joining upon or ,join to inducement an as directors remuneration any waive to agreed or waived director a which under arrangements no were There .years prior and current the during

EMOLUMENTS HIGHEST WITH INDIVIDUALS 12.

details ,directors) four 2010: (three included individuals paid highest five the ,year the During the of aggregate The .statements financial the to 11 Note in out set are emoluments whose of :follows as is individuals) one 2010: (two remaining the to payable or paid emoluments

	2011 000'\$HK	2010 000'\$HK
Salaries and other benefits Retirement benefit scheme contributions	1,415 —	507 —
	1,415	507

:band following the within are employees the of emoluments The

	Number of employees
	2011	2010
Nil HK — \$1,000,000	2	1

COMPANY THE OF OWNERS TO ATTRIBUTABLE LOSS 13.

2011 March 31 ended year the for Company the of owners to attributable loss consolidated The been has which) \$6,237,000HK of profit 2010: (\$179,741,000HK approximately of loss a includes .Company the of statements financial the in with dealt

2011 March 31 ended year the For

DIVIDEND 14.

2011 March 31 ended year the for dividend a of payment the recommend not do Directors The .(Nil\$HK 2010:(

SHARE PER LOSS 15.

is Company the of owners to attributable share per loss diluted and basic the of calculation The :data following the on based

Company the of owners to attributable Loss

	2011 000'\$HK	2010 000'\$HK ( Restated (
Loss the for purposes basic of per loss share Interest on convertible bond Fair value loss gain(/ the on) derivative financial instrument	) (153,670 — 67,726	(33,119) 5,853 (29,820)
Loss the for purposes of diluted per loss share	(85,944)	(57,086)
Number of shares	000'	000'
Weighted average number of ordinary shares for the purposes basic of per loss share Adjustment for convertible bond	14,971,055 8,281,781	10,734,514 839,285
Weighted average number of ordinary shares the for purposes of diluted per loss share	23,252,836	11,573,799
	HK cents	HK cents ( Restated (
per Loss share attributable to owners the of Company Basic—	(1.026)	(0.31)
— (Diluted exclude anti (dilutive-	(1.026)	(0.49)

does share per loss diluted of computation the 2010, and 2011 March 31 ended years the For those of price exercise the as warrants outstanding s'Company the of exercise the assume not 2010. and 2011 for shares for price market average the than higher is warrants

2011 March 31 ended year the For

PROPERTY INVESTMENT 16.

	2011 000'\$HK	2010 000'\$HK
Valuation :
At April 1	44,900	37,000
Fair value gain	1,157	148
Exchange difference	3,743	7,752
31 At March	49,800	44,900

.Kong Hong outside land freehold in held is property investment The

of firm independent an by 2011 March 31 at revalued was property investment s'Group The market established an of lack the to Due .Limited Surveyors) Pacific-Asia (LCH ,surveyors chartered the ,properties comparable of sales actual of transactions comparable on base to which upon Depreciated .cost replacement depreciated its of basis the on valued been has property investment and buildings the of cost replacement new the of estimate an "as defined is cost replacement functional and ,condition ,age for allow to made then are deductions which from works site other connection utilities public those and cost formation site the of account into taken obsolescence 31 on valuer the by estimated value fair in change the from gain The ."properties the to charges loss or profit in recognised been has) \$148,000HK 2010: (\$1,157,000HK to amounted 2011 March 2011. March 31 ended year the for

2011 March 31 ended year the For

EQUIPMENT AND PLANT ,PROPERTY 17.

Group The	Buildings 000'\$HK	Leasehold improvements 000'\$HK	,Furniture machinery equipment and 000'\$HK	Motor vehicles 000'\$HK	Vessels 000'\$HK	Construction progress in 000'\$HK	Total 000'\$HK
Cost :valuation or 2009 April 1 At Additions Acquisition subsidiaries of Disposal off write/ Deregistration subsidiary a of Transfer (out(/in Exchange difference	13,000 — — — — 841 —	1,568 — — (40) — — 5	45,825 1,216 15 — (31) 5,170 50	6,875 860 — — — — 19	— — — — — 25,216 —	40,309 42,336 1,583 — — (31,227) 128	107,577 44,412 1,598 (40) (31) — 202
At 2010 March 31	13,841	1,533	52,245	7,754	25,216	53,129	153,718
Additions Disposal off write/ Transfer (out(/in Exchange difference	— — — —	2,652 — — 62	420 (4,119) 351 969	859 — — 251	277 — 33,781 1,023	8,551 — (34,132) 2,055	12,759 (4,119) — 4,360
At 2011 March 31	13,841	4,247	49,866	8,864	60,297	29,603	166,718
Analysis cost of valuation or At 2011 March 31 cost At valuation At At 2010 March 31	841 13,000 13,841	4,247 — 4,247	49,866 — 49,866	8,864 — 8,864	60,297 — 60,297	29,603 — 29,603	153,718 13,000 166,718
cost At valuation At	841 13,000	1,533 —	52,245 —	7,754 —	25,216 —	53,129 —	140,718 13,000
	13,841	1,533	52,245	7,754	25,216	53,129	153,718
Accumulated depreciation and :impairment 2009 April 1 At Charge year the for Deregistration subsidiary a of Exchange difference	— 520 — —	214 300 — 1	9,008 6,442 (18) 18	2,581 1,261 — 7	— 1,888 — 4	— — — —	11,803 10,411 (18) 30
At 2010 March 31 Charge year the for Disposal off write/ Exchange difference	520 555 — (6)	515 198 — 30	15,450 6,549 (1,735) 320	3,849 1,437 — 165	1,892 2,530 — 189	— — — —	22,226 11,269 (1,735) 698
At 2011 March 31	1,069	743	20,584	5,451	4,611	—	32,458
carrying Net :amount At 2011 March 31	12,772	3,504	29,282	3,413	55,686	29,603	134,260
At 2010 March 31	13,321	1,018	36,795	3,905	23,324	53,129	131,492

2011 March 31 ended year the For

(Continued(EQUIPMENT AND PLANT ,PROPERTY 17.

March 31 at as \$13,000,000HK of value market open their at revalued was properties s'Group The was valuation The .potential income reversionary for allowing income rental net on based 2009 .Limited Surveyors) Pacific-Asia (LCH ,surveyors chartered of firm independent an by out carried

impairment accumulated and depreciation accumulated less cost at carried been building this Had March 31 at as) \$3,114,000HK 2010: (\$3,045,000HK been have would amount carrying its ,losses 2011.

	Furniture , machinery
	and	Motor
The Company	equipment 000'\$HK	vehicles 000'\$HK	Total 000'\$HK
:Cost
At April 1 2009	185	150	335
Additions	8	—	8
31 As March 2010	193	150	343
Additions	152	—	152
31 As March 2011	345	150	495
Accumulated depreciation :
At April 1 2009	65	73	138
Charge for year the	38	30	68
31 At March 2010	103	103	206
Charge for year the	46	30	76
31 As March 2011	149	133	282
Net book :value
31 At March 2011	196	17	213
31 At March 2010	90	47	137

2011 March 31 ended year the For

DEVELOPMENT UNDER PROPERTIES OTHER 18.

	2011 000'\$HK	2010 000'\$HK
Amounts comprise :
Prepaid lease payments Additions Interest capitalised Exchange difference	170,785 1,699 15,040 6,817	— 170,785 — (105)
	194,341	170,680

,Province Hubei ,City Yichang ,District Yilling ,Village Meiziya in located is site development The .("Land "the (years 70 to 40 between of lease on held are land of parcel the and PRC the

Company Development Property Xinshougang Yichang ,subsidiary a by owned is Land The Gorges Three Yichang the of development the for planned is and) Xinshougang Yichang ("Limited State Gorges Three the and House Guest State Gorges Three the ,Centre Convention International the conducted Group The .")Project Yichang "the collectively (Property Commercial Garden Guest reported broadly was which 2008 May 27 on works construction of commencement for ceremony the commence to permission the obtained had Group the 2009, November 30 On .press the by New of Committee The from project development property the for works formation site 1 phase .(宜昌市夷陵區發展新區指揮部(City Yichang of District Yiling of Area Developing

2010, June 30 on held meeting planning)宜昌市規劃局(Bureau Planning Urban Yichang to Pursuant .thereon alterations and plan design development the approved Bureau Planning Urban Yichang meeting planning)宜昌市夷陵區規劃局(District Yiling of Bureau Planning Urban Yichang to Pursuant the of plan design development the and plan development overall detailed the 2010, July 8 on held .approved been also have project development property

Gorges Three of construction commenced Group the 2010, March 31 ended year the During payments lease prepaid attributable the allocated and Property Commercial Garden Guest State other as included was portion remaining The .)25 Note (sale for development under properties to .development under properties

development joint a signed has Xinshougang Yichang 2011, March 31 ended year the During ,("Properties Dafang ("Company Development Properties DaFang Province Hubei with agreement the to 32 Note in disclosed are arrangement of Details .Project Yichang the of development the for .statements financial

2011 March 31 ended year the For

PAYMENTS LEASE PREPAID 19.

term medium under PRC the in rights use land represent payments lease prepaid s'Group The .lease

	Group
	2011 000'\$HK	2010 000'\$HK ( Restated (
:Cost
At April 1	32,915	33,521
Reallocated from long term prepayments	202	—
Exchange difference	1,174	98
Amortisation for year the	(657)	(704)
31 At March	33,634	32,915
Classified as current portion	657	704
Classified non as current- portion	32,977	32,211

of value book net a with Group the of payment lease prepaid certain 2010, March 31 At .(34 Note (Group the to granted loan bank the secure to pledged was \$2,786,000HK approximately .year current in released was pledge the and paid was loan bank The

2011 March 31 ended year the For

ASSETS BIOLOGICAL 20.

	Seedlings 000'\$HK	Camellia trees 000'\$HK	Standing trees 000'\$HK	Total 000'\$HK
At April 1 2009	15,969	—	55,981	71,950
Plantation expenditure incurred	17,947	—	700	18,647
Reclassification	296	—	(296)	—
Direct sales	(1,426)	—	(142)	(1,568)
Change fair in value less costs sell to	—	—	4,869	4,869
Exchange difference	52	—	64	116
31 At March 2010	32,838	—	61,176	94,014
Plantation expenditure incurred	1,223	1,757	20,046	23,026
Reclassification	(15,027)	14,435	592	—
Direct sales	(1,409)	—	—	(1,409)
Change fair in value less costs sell to	—	(2,120)	(20,338)	(22,458)
Exchange difference	713	663	1,232	2,608
31 At March 2011	18,338	14,735	62,708	95,781

are trees Standing .China of Republic s'People the in located are assets biological s'Group The ,term years 50 with Mu Chinese) 94,500 2010: (94,500 approximately of land leasehold on planted of Government s'People the with agreement binding a into entered has Group The 2057. in expiring biological its and land forest of Mu Chinese 500,000 than less not of acquisition for County Bu Da .statements financial the to 22 Note in disclosed are transaction the of Details .assets

.(Nil 2010: (logs round any sell or harvest not did Group the 2011, March 31 ended year the During

the (Limited Surveyors) Pacific-Asia (LCH by valued independently were trees standing s'Group The .trees standing of valuation the for approach value market the adopted has Valuer The .")Valuer" total the and logs round of") m.cu ("meter cubic unit per price market current the uses method The fair the estimating for basis the as 2011 March 31 at forest the in timber of volume merchantable :follows as are adopted assumptions principal The .Group the of sell to costs less value

• ;and logs round produce to is Group the—
• of directions and rots ,defects physical as such wood the in defects natural of factors the— .valuation the for 70% of rate recovery a for allowed been have grain

biological little that considered Company the of directors the as cost at carried are Seedlings therefore is seedlings these of cost The .incurrence cost initial since place taken has transformation the by determined as 2010 and 2011 March 31 at as values fair their from different materially not .Company the of directors

興寧樹人木業有 by held oil tea refined for seedlings represented trees tea or trees Camellia biological certain through gone already had and years previous in planted were which 限公司 the adopted has Valuer The .Valuer the by valued independently were They .transformation three about harvest for ready be only will and young still are trees the since basis cost replacement associated costs the accumulated Valuer the ,basis cost replacement Under .later years four to silviculture and tending ,cost fertiliser ,rental land ,costs planting and sapling ,preparation site with .expenses management associated other and costs

2011 March 31 ended year the For

RIGHTS CONCESSION FOREST 21.

any and amortisation accumulated less cost at stated are Guyana in Rights Concession Forest The fees acreage the includes Right Concession Forest of costs The .losses impairment accumulated geophysical ,geological ,exploration necessary of costs ,Commission Forestry Guyana to payable .rights the obtaining to prior incurred studies research other and

	Group
	2011 000'\$HK	2010 000'\$HK
:Cost
At April 1	534,451	534,475
Exchange difference	(6)	(24)
31 At March	534,445	534,451
Accumulated amortisation :
At April 1	5,906	3,692
Amortisation the for year	6,896	2,214
31 At March	12,802	5,906
Net carrying :amount
31 At March	521,643	528,545

2011 March 31 ended year the For

(Continued(RIGHTS CONCESSION FOREST 21.

a ,")Rights Concession Jaling ("Inc Industries Forest Jaling by held rights concession Forest Company the of subsidiary

Exploratory Forest State a granted was") Jaling (".Inc Industries Forest Jaling 2003, August 22 On out carry to ,Commission Forestry Guyana the ,Forests of Commissioner the by) 1/2003 (Permit of period a for) acres 412,000 approximately (hectares 167,000 of area an on work exploratory Jaling 2005, January 25 dated) 02/2005 TSA (Agreement Sales Timber the to Pursuant .years 3 the ,Forests of Commissioner the by right concession timber exclusive an with granted was and 2005 January 25 on commencing ,years 25 of period a for ,Commission Forestry Guyana of area an from timber remove and cut ,occupy to) inclusive dates both (2030 January 24 until South ,Guyana of Forest State the in) acres 338,000 approximately (hectares 136,900 approximately the on bounded is and surrounding natural the on based") A Block ("block a include which ,America ,River Whana and Reserves Amerindian Baramita the by South the on ,River Amakura the by North of border common the by West the on and ,River Whana and Whannamaparu the by East the on another and America South ,Guyana of border Northwest the within lies It .Venezuela and Guyana ,River Kaituma the by South the on 6/93, WCL by North the on bounded is") B Block ("block Reserves Amerindian Sebai and River Aruka the by East the on ,River Sebai and) BCL04/91- TSA( TSA-BCL of boundary concession the being ,River Waiamu and Creek Sand by West the on and approximately of fee acreage total a pay shall Jaling ,Rights Concession Jaling the Under 04/91. of Regulations and Act Forest the by prescribed as area forestry all on charged \$9,000,000HK of Commissioner the by issued 2004 November 23 dated letter a on based ,addition In .Guyana area additional an find to principle in committed has Commission Forestry Guyana the ,Forests that area the to less or more compensate would which concession current the of proximity the in 167,000 original the to possible as close as acreage concession total the bring and exercised was .Rights Concession Forest the as same terms at) acres 412,000 approximately (hectares

There 2010. March 31 ended year the during completed been has B Block in operation logging The A Block to operation logging the shift will Group the and year the during operation logging no was .future near in

,("Rights Concession Garner (".Inc Industries Forest Garner by held rights concession Forest Company the of subsidiary a

Exploratory Forest State a granted was") Garner (".Inc Industries Forest Garner 2004, August 18 On out carry to ,Commission Forestry Guyana the ,Forests of Commissioner the by) 3/2004 (permit 3 of period a for) acres 223,552 approximately (hectares 90,469 of area an on work exploratory was Garner 2005, June 11 dated) 03/2005 TSA (Agreement Sales Timber the to Pursuant .years Forestry Guyana the ,Forests of Commissioner the by right concession exclusive an with granted both (2030 June 10 until and 2005 June 11 on commencing ,years 25 of period a for Commission hectares 92,737 approximately of area an from timber remove and cut ,occupy to) inclusive dates a includes which ,America South ,Guyana of Forest State the in) acres 229,158 approximately( Putareng of bank left ,River Puruni of bank right ,River Mazaruni of bank left the on located block total a pay shall Garner ,Rights Concession Garner the Under .America South ,Guyana of River the by prescribed as area forestry all on charged \$5,375,000HK approximately of fee acreage studies exploratory necessary the completed has Garner .Guyana of Regulations and Act Forest .Rights Concession Garner the obtained and

2011 March 31 ended year the For

(Continued(RIGHTS CONCESSION FOREST 21.

valued independently were rights concession forest the ,testing impairment of purpose the For the for approach value market the using") Valuer "the (Limited Surveyors) Pacific-Asia (LCH by round of m.cu unit per price market current the uses method The .trees standing of valuation for basis the as 2011 March 31 at forest the in timber of volume merchantable total the and logs adopted assumptions principal The .trees standing the of sell to costs less value fair the estimating :follows as are

• ;logs round produce to is Group the—
• ;valuation the for rate reasonable for allowed been has rate growth annual the—
• were Rights Concession Garner and Rights Concession Jaling for logs of volume total the— ( m.cu million 1.94 2010: (m.cu million 2.03 and) m.cu million 2.78 2010: (m.cu million 2.93 ;2011 March 31 at as respectively
• ;applicable is species all for price average the and homogenous are logs of price the—
• onerous an of outgoings and restrictions ,encumbrances all from free are logs round the and; value its affect could which nature
• of directions and rots ,defects physical as such wood the in defects natural of factors the— .valuation the for rate recovery reasonable for allowed been have grain

.required was impairment no 2011, March 31 at as ,reports valuation the on Based

there if ,and annually rights concession forest of lives useful estimated the reviews Management economic future the of consumption of pattern expected the in change significant a been has The .pattern changed the reflect to changed is estimate the ,asset the in embodied benefits previous from changes significant are there if adjusted is period future for expense amortisation based rights concession forest s'Group the of life useful the determines Management .estimates .assets the of consumption of pattern expected and assets similar with experience historical its on .estimation and judgment both require lives amortisable setting in used assumptions and Estimates

current the of consideration into taking 2011, March 31 ended year the of half second the During Concession Garner and Rights Concession Jaling the from production expected and condition considered and method amortisation the reassessed Company the of management the ,Rights timber probable and proven the on based method production of unit the using amortisation that of consumption of pattern expected the reflect to method appropriate the longer no is resources .rights concession forest the in embodied benefits economic future the

straight to method production of units from method amortisation the revised Group the ,Accordingly .rights the of terms remaining the over method line

result a As 2011. January 1 from prospectively for accounted is estimate accounting in change The March 31 ended year the for \$6,877,000HK by increased expense amortisation ,change such of 2011.

2011 March 31 ended year the For

PREPAYMENTS TERM LONG 22.

	2011 000'\$HK	2010 000'\$HK
Prepayment for acquisition of plantation assets Other prepayments	— 9,004	33,313 1,948
	9,004	35,261

rights use land and assets biological the .e.i ,assets plantation of acquisition for cost the of Details :follows as illustrated were prepayments the from attributable

	2011 000'\$HK	2010 000'\$HK
Acquisition of use land rights ( equivalent RMB to 23,534,000 ( Acquisition of biological assets ( equivalent RMB to 6,925,000 and RMB 6,224,000 the for	27,897	26,810
year ended 31 March 2011 and 2010 respectively (	8,168	7,090
Cash paid ( equivalent RMB to 59,000,000 (	36,065 69,078	33,900 67,213
Prepayment for acquisition of plantation assets Classified as other prepayments Reallocated to biological assets	33,013 (21,009) (12,004)	33,313 — —
	—	33,313

entered ,Company the of subsidiary owned wholly a ,有限公司)大埔(樹人木業 2007, October 15 On Bu Da of Government s'People the with") Agreement Binding ("agreement binding legally a into procure and arrange to it engaging ,Company the of party third independent an ,")PGDB ("Country and land forest of Mu Chinese 500,000 than less not in Interest Leasehold the of acquisition the million 150RMB than more not be to expected was consideration total The .assets biological its The .)\$170,880,000HK 2010: (\$170,880,000HK approximately to equivalent) (million 150RMB 2010:( into entered be to agreement purchase and sale signed formally the in prescribed be to were terms required also was Company the ,Agreement Binding the Under .Company the by leaseholders with to) \$2,779,000HK approximately to equivalent (2,500,000RMB of fee arrangement off-one a pay to financial the to 41 Note in disclosed were 2010 March 31 at as commitment s'Group The .PGDB .statements

.PGDB to) million \$79.5HK to equivalent (million 70RMB paid Group the 2009, March 31 at As to equivalent (million 11RMB of refund a received Group the 2010, March 31 ended year the During .years two last the over land forest granting in failure the of because PGDB from) million \$12.5HK 2010. March 31 at as) million \$67.2HK to equivalent (million 59RMB paid Group the ,aggregate In

2011 March 31 ended year the For

(Continued(PREPAYMENTS TERM LONG 22.

of area an for ownership forestry with granted only was Group the 2010, March 31 at As land and assets biological of acquisition of cost attributed The .Mu Chinese 94,500 approximately in included was balance remaining the and recognised was total in million \$33.9HK of rights use .assets current-non under prepayments

.area forestry remaining the grant to able not was PGDB 2011, March 31 ended year the During .PGDB by made was refund no ,However .period agreed the within) Mu Chinese 405,500 .e.i( to 2010 April from period the for Group the to services plantation provide to agreed PGDB ,Instead assets biological to transferred was \$12,004,000HK approximately of amount An 2012. December plantation of acquisition the for prepayment of balance remaining The .expenditure plantation as .prepayments other to reclassified was assets

SUBSIDIARIES IN INTERESTS 23.

	Company
	2011 000'\$HK	2010 000'\$HK
Unlisted shares cost at , Due from subsidiaries	10 1,870,015	10 1,850,855
:Less Impairment losses	1,870,025 (27,100)	1,850,865 (27,100)
	1,842,925	1,823,765

the to 44 Note in out set are 2011 March 31 at as subsidiaries s'Company the of Particulars .statements financial

represent substance in and bearing interest-non ,unsecured are subsidiaries from due Amounts not are amounts The .loans equity-quasi of form the in subsidiaries the in interest s'Company the .months twelve next the within settled be to expected

2010:) \$27,100,000HK of subsidiaries from due amounts for allowance accumulated An subsidiaries from due balances the because 2011 March 31 at as recognised was) \$27,100,000HK less be to estimated were subsidiaries respective the of value assets net the to reference with and costs investment related the of amount carrying the ,Accordingly .amounts carrying their than .amounts recoverable their to reduced is subsidiaries respective the from due amounts

2011 March 31 ended year the For

INSTRUMENT FINANCIAL DERIVATIVE 24.

redeem early to option s'Company the of value fair the represents instrument financial Derivative early the of value fair The 2010. February 9 on Company the by issued bond convertible in use Limited Surveyors) Pacific-Asia (LCH by preformed valuations the on based option redemption The .model Scholes Black and model tree ,Model Pricing Option Binomial the of combination a :follows as were model the into inputs major

	31 At March 2011	31 At March 2010	issue At date
Conversion price	HK \$0.056	HK \$0.056	HK \$0.056
Target redemption price ) a note (	\$0.56HK	A/N	A/N
Expected volatility (b note (	62.7%	80%	88%
Expected life ) c note ( Risk rate free (d note (	1.87 years 0.59%	2.87 years 1.182%	years 3 0.93%

:Notes

• of management the by determined is which price conversion the times ten is price redemption Target) a( .bond convertible the of redemption the for Group the
• price share s'Company the of volatility historical the calculating by determined was volatility Expected) b( .valuation of date before bond convertible of life remaining the as same period the cover
• .option redemption early the of life remaining expected the was life Expected) c(
• of date at rate Notes Fund Exchange HKMA the to reference by determined is rate free risk The) d( .valuation

change a as recognised was) \$29,820,000HK of gain 2010: (\$67,726,000HK of loss ,year the During .(36 Note (instrument financial derivative of value fair in

SALE FOR DEVELOPMENT UNDER PROPERTIES 25.

	2011 000'\$HK	2010 000'\$HK
Amounts comprise :
Construction cost Prepaid lease payments Interest capitalised Exchange difference	48,792 912,120 80,334 36,407	— 912,120 — (560)
	1,077,653	911,560

2011 March 31 ended year the For

(Continued(SALE FOR DEVELOPMENT UNDER PROPERTIES 25.

.(18 Note (PRC the in located are sale for development under properties The

months twelve within completion for scheduled not were sale for development under Properties .date reporting the from

INVENTORIES 26.

	Group		Company
	2011 000'\$HK	2010 000'\$HK	2011 000'\$HK	2010 000'\$HK
Raw materials in Work progress Finished goods Timber logs and products	72,940 45,576 14,990 1,726	68,099 45,713 12,937 1,897	— — — —	— — — —
	135,232	128,646	—	—

are which) \$57,594,000HK 2010: (\$59,578,000HK of woods precious are materials raw in Included .trading for ready

RECEIVABLES OTHER AND TRADE 27.

	Group		Company
	2011	2010	2011	2010
	000'\$HK	000'\$HK	000'\$HK	000'\$HK
Trade receivables Other receivables Deposits paid	2,796 18,378 6,568	2,903 5,566 2,285	— — 4,999	— — 388
Prepayments	24,166	18,324	7,285	6,875
	51,908	29,078	12,284	7,263

,customers new for except ,credit on mainly are customers its with terms trading s'Group The ,months two generally is period credit The .required normally is advance in payment where maximum a has customer Each .customers major for more or months three over to up extending has and receivables outstanding its over control strict maintain to seeks Group The .limit credit by regularly reviewed are balances Overdue .risk credit minimise to department control credit a .management senior

2011 March 31 ended year the For

(Continued(RECEIVABLES OTHER AND TRADE 27.

:follows as are Group the of receivables trade of analysis ageing the of Details

	Group		Company
	2011 000'\$HK	2010 000'\$HK	2011 000'\$HK	2010 000'\$HK
Outstanding balances :aged
to 0 days 30	794	2,015	—	—
to 31 days 60	14	451	—	—
61 180 to days	659	52	—	—
Over 180 days	1,329	385	—	—
	2,796	2,903	—	—

impaired nor due past neither were receivables trade s'Group the of all 2010, and 2011 March 31 At no ,Consequently .default of history recent no was there whom for customers to related which .period reporting of end the at recognised was debts doubtful for allowance

the than other currency a in denominated amounts following the are receivables trade in Included :relate they which to entity the of currency functional

	Group		Company
	2011 000'\$HK	2010 000'\$HK	2011 000'\$HK	2010 000'\$HK
Renminbi ("RMB (" United States Dollars ("USD ("	1,550 1,246	85 2,818	— —	— —
	2,796	2,903	—	—

2011 March 31 ended year the For

EQUIVALENTS CASH AND CASH 28.

	Group		Company
	2011 000'\$HK	2010 000'\$HK	2011 000'\$HK	2010 000'\$HK
Cash and bank balances	591,575	19,759	559,582	801

:currencies following the in denominated were balances bank and Cash

	Group		Company
	2011 000'\$HK	2010 000'\$HK	2011 000'\$HK	2010 000'\$HK
HKD RMB USD Australian Dollars ("AUD (" Guyana Dollars Euro dollars	570,865 20,240 166 215 — 89	2,826 15,861 885 176 11 —	559,547 24 11 — — —	790 — 11 — — —
	591,575	19,759	559,582	801

Exchange Foreign s'PRC under ,however ,currencies other into convertible freely not is RMB Exchange Foreign of Payment and Sale ,Settlement of Administration and Regulations Control banks through currencies other for RMB exchange to permitted is Group the ,Regulations .business exchange foreign conduct to authorised

time term Short .rates deposit bank daily on based rates floating at interest earns banks at Cash the of requirements cash immediate the on depending periods varying for made were deposits .rates deposit time term short respective the at interest earn and ,Group

2011 March 31 ended year the For

PAYABLES OTHER AND TRADE 29.

	Group		Company
	2011 000'\$HK	2010 000'\$HK	2011 000'\$HK	2010 000'\$HK
Trade payables Other payables and accruals Deposit received from customers Purchase consideration payable	3,402 75,505 8,707 5,108	2,256 39,872 3,542 5,108	— 2,877 — 5,108	— 9,847 — 5,108
	92,722	50,778	7,985	14,955

:follows as are Group the of payables trade of analysis ageing the of Details

	Group		Company
	2011 000'\$HK	2010 000'\$HK	2011 000'\$HK	2010 000'\$HK
Outstanding balances :aged
to 0 days 30	302	1,543	—	—
to 31 days 60	450	—	—	—
61 180 to days	507	698	—	—
Over 180 days	2,143	15	—	—
	3,402	2,256	—	—

:currencies following the in denominated were payables other and Trade

	Group		Company
	2011	2010	2011	2010
	000'\$HK	000'\$HK	000'\$HK	000'\$HK
HKD	23,411	30,283	7,985	14,955
RMB	67,003	18,345	—	—
USD	2,079	1,946	—	—
AUD	229	204	—	—
	92,722	50,778	7,985	14,955

2011 March 31 ended year the For

NOTE PROMISSORY 30.

with connection in note promissory \$280,000,000HK issued Company the 2010, February 9 On of instalments quarterly 14 by repayable is note promissory The .subsidiaries of acquisition the three every of day last the on payable thereon accrued interest the with each \$20,000,000HK 1.5% at interests coupon bears note promissory The .note promissory the of issue the after months ,noteholder the to notice written prior giving by ,may Company The .quarterly payable annum per at) \$20,000,000HK of multiples the in (note promissory outstanding the part in or whole in repay of value fair The .note promissory the of issue of date the after time to time from and time any valuation professional the on based ,date issue the at as \$233,482,000,HK is notes promissory promissory the of rate interest effective The .Limited Surveyors) Pacific-Asia (LCH by performed .annum per 11.82% be to determined is note

:follows as is note promissory the on movement The

	2011 000'\$HK	2010 000'\$HK
Carrying value at as April 1 of Issue promissory note during year the Interest expense (8 Note (	237,262 — 47,535	— 233,482 3,780
Carrying value 31 at as March Less current : portion	284,797 ) (284,797	237,262 (59,930)
Non current- portion	—	177,332

to Pursuant .interest and principal the of repayment on defaulted Group the ,year the During any of repayment immediate demand to entitled are holders note promissory the ,agreement the .interest accrued and principal outstanding

under classified and million \$285HK of value face its at carried is note promissory the ,result a As of date the at note promissory of amount carrying the between difference The .liabilities current .charge interest imputed accelerated the represented million \$40.7HK of value face its and default

2011 March 31 ended year the For

GRANT GOVERNMENT DEFERRED 31.

	2011 000'\$HK	2010 000'\$HK
At April 1 Additions Acquisition of subsidiaries Amount released profit to loss or Exchange difference	120,786 — — — 4,898	— 6,886 114,308 (338) (70)
31 At March	125,684	120,786
Analysed for reporting purposes :as Current liabilities Non current- liabilities	9,277 116,407 125,684	8,915 111,871 120,786

received 2010, March 31 ended year the during acquired subsidiary a ,Xinshougang Yichang) i( in) \$119,987,000HK to equivalent (105,326,000RMB approximately of grant government a of piece a of respect in premium land partial the on payable foregivable a of form the in 2007 .PRC the ,Hubei ,City Yichang in situated land

Yichang ,contract supplemental the and Contract Rights Use Land the to Pursuant \$740HK to equivalent (million 650RMB approximately invest to committed had Xinshougang legal the obtained Xinshougang Yichang As 2007. during land of piece this develop to) million .date that since recorded was grant government the 2007, March in land the of title

Group the when period the in loss or profit in recognised be would grant government The .expense an as rights use land relevant the of cost the recognises

government a received subsidiary s'Company the 2010, March 31 ended year the During) ii( of development the for) \$6,886,000HK to equivalent (6,045,000RMB approximately of grant .PRC the ,Ning Xing in located production oil-tea

of volume the to according basis systematic a on amortised be to is grant government The amortisation No .generated is income and begins oil-tea of production the when production been not had production as 2011 and 2010 March 31 ended year the for recognised was .period reporting the of end the at commenced

2011 March 31 ended year the For

PARTNER VENTURE JOINT A TO DUE AMOUNT 32.

development joint a signed Xinshougang Yichang ,year the during 18, Note in described As several of development the for ,Properties Dafang ,party third independent an with agreement International Gorges Three Yichang including ,properties residential and commercial complex ("House Guest ("House Guest State Gorges Three the ,")Centre Convention ("Centre Convention the ,agreement the to According .Property Commercial Garden Guest State Gorges Three the and Hubei ,City Yichang ,District Yiling ,Village Meiziya at located land of parcel a provide will Group construction and development necessary all for funding provide will Properties Dafang and Province House Guest and Centre Convention for costs borrowing for except project property the for costs Yichang ,year the During .basis 65:35 on Properties Dafang and Group the by shared be will which all for funding provided has Properties Dafang while land of parcel a contributed has Xinshougang .Project Yichang the for costs construction and development necessary

profit distributable tax after the share to agreed Properties Dafang and Xinshougang Yichang and ,basis 60:40 a on Property Commercial Garden Guest State Gorges Three the to attributable Convention International Gorges Three Yichang the to attributable benefit economic the share .basis 65:35 a on House Guest State Georges Three the and Centre

jointly the in interests s'Group the of respect in recognised was loss and profit no ,year the During .operations controlled

of term fixed no with and free-interest ,unsecured was partner venture joint a to due amount The .repayment

DIRECTOR A TO DUE AMOUNT 33.

.demand on repayable and free interest ,unsecured is director a to due amount The

BORROWINGS 34.

	Group
	2011 000'\$HK	2010 000'\$HK
Secured (i ( Unsecured (ii (	— 6,164	5,696 —
	6,164	5,696

:follows as repayable were borrowings Total

	Group
	2011 000'\$HK	2010 000'\$HK
On demand within or one year included in current liabilities	6,164	5,696

6.1065% at bearing interest ,)19 Note (payment lease prepaid' Group the by secured was loan bank The) i( .year one within repayable and annum per

.year one within repayable and free interest ,unsecured is loan The) ii(

2011 March 31 ended year the For

LIABILITIES TAX DEFERRED 35.

reporting the of end at properties of revaluation on recognised liabilities and assets tax Deferred :follows as were period

	Group
	2011 000'\$HK	2010 000'\$HK
31 At March	1,574	1,574

the that extent the to forward carried losses tax for recognised were assets tax income Deferred has Group The .probable is profits taxable future the through benefit tax related the of realisation offset for forward carried be to) \$114,578,000HK 2010: (\$104,393,000HK of losses tax unrecognised (\$39,755,000HK 2010: (\$67,160,000HK of losses tax included which income taxable future against with accordance in years five of period a for income taxable future against forward carried be may .indefinitely forward carried be may losses tax remaining The .law tax PRC the

BOND CONVERTIBLE 36.

amount principal a with bond convertible redeemable issued Company the 2010, February 9 On coupon carried bond The .subsidiaries of acquisition the with connection in \$470,000,000HK of or conversion upon Company the by payable be shall which ,annum per 2.15% of rate interest .bond the of redemption

an at Company the of shares ordinary into bond the convert to entitled are bondholders The in adjustments normal the to subject (share conversion per \$0.056HK of price conversion initial from commencing period the during time any at) bond convertible the of terms the with accordance .bond convertible of issue of date

Company the ,Company the by cancelled and purchased or ,converted ,redeemed previously Unless accrued with together amount principal the at bond convertible outstanding any redeem shall .date issuing the after years three falling date the is which date maturity the on interest

the redeem to bond convertible the of date maturity the to prior time any at may Company The the giving by accrued interest with together bond outstanding the of part relevant any or whole .redemption such make to intention its of notice' days 10 bondholders

option redemption early embedded the of value fair the determined Company the ,date issuing At (Pacific-Asia (LCH by performed valuations the on based component liability and component 12.08%. is rate interest effective The .approach flow cash discounted using Limited Surveyors by held option conversion the for component equity the as assigned was amount residual The .Group the and Company the of reserve bond convertible the in included was and bondholders

2011 March 31 ended year the For

(Continued(BOND CONVERTIBLE 36.

until basis cost amortised on liability current-non a as carried is component liability The .redemption or conversion on extinguished

		Early redemption
	Liability component 000'\$HK	option component 000'\$HK	Equity component 000'\$HK	Total 000'\$HK
of Issue convertible bonds during year the ended 31 March 2010 Interest expense (8 Note (	355,352 5,853	) (381,678 —	435,064 —	408,738 5,853
Change in fair the (value (24 Note	—	(29,820)	—	(29,820)
31 At March and April 1 2010 Interest expense (8 Note ( Interest paid	361,205 47,839 (4,395)	) (411,498 — —	435,064 — —	384,771 47,839 (4,395)
Conversion of convertible bond into ordinary shares (i ( — Transfer share to capital	(33,429)	—	—	(33,429)
— Transfer to share premium Change in fair the (value (24 Note	) (108,108 —	130,678 67,726	173,285) —	) ( (150,715 67,726
31 At March 2011	263,112	) (213,094	261,779	311,797

:follows as is year the during bond convertible of conversion of Summary) i(

Date	Amount	Number of ordinary shares converted
22 February 2011 March 2 2011 24 March 2011 29 March 2011	HK \$36,000,000 HK \$20,000,000 HK \$112,000,000 HK \$19,200,000	642,857,142 357,142,857 2,000,000,000 342,857,142

2011 March 31 ended year the For

CAPITAL SHARE 37.

		2011		2010
	Number		Number
	of shares	Amount	of shares	Amount
Note	' 000	000'\$HK	' 000	000'\$HK
Authorised : Ordinary shares of \$0.01HK each
At April 1 Increase during year the ( (a	30,000,000 —	300,000 —	20,000,000 10,000,000	200,000 100,000
31 At March	30,000,000	300,000	30,000,000	300,000
Issued fully and :paid
Ordinary shares of \$0.01HK each At April 1	14,412,927	144,129	10,137,065	101,370
of Issue shares for acquisition of subsidiaries (b ( Placement of shares ( (c Shares issued upon	— 1,800,000	— 18,000	4,275,862 —	42,759 —
conversion of convertible bond ( (d	3,342,857	33,429	—	—
Shares issued upon exercise of warrants ( (e	287,141	2,871	—	—
31 At March	19,842,925	198,429	14,412,927	144,129

:Note

capital share authorised in Increase) a(

28 on held Company the of meeting general annual the at passed resolution ordinary an to Pursuant \$200,000,000HK from increased was Company the of capital share ordinary authorised the 2009, August into divided \$300,000,000HK to each \$0.01HK of value par a of shares 20,000,000,000 into divided 10,000,000,000 additional an of creation the by each \$0.01HK of value par a of shares 30,000,000,000 .each \$0.01HK of value par a of shares

subsidiaries of Acquisition) b(

as share per \$0.0637HK at issued were each \$0.01HK of shares 4,275,862,068 2010, February 9 On were Details .PRC the in subsidiaries of acquisition the for consideration the of part of settlement 2009. December 23 dated Company the of circular the in disclosed

2011 March 31 ended year the For

(Continued(CAPITAL SHARE 37.

(Continued (:Note

shares of Placement) c(

were each \$0.01HK of shares 1,800,000,000 2011, January 12 dated agreement placing a to Pursuant before ,consideration cash total a for share placing per \$0.30HK of price placing a at issued and allotted a under deposit refundable a paying of purpose the for \$540,000,000,HK of ,expenses issuance any Mongolia Inner in interest equity an for subscription the to relating 2011 January 12 dated intent of letter PRC the of laws the under established company a ,Limited Company Expressway Haul Heavy Zhunxing of announcement the in disclosed were Details .Company the to capital working additional providing and 2011. January 13 dated Company the

bond convertible of Conversion) d(

principal aggregate an with Company the of bond convertible 2011, March 31 ended year the During of Company the of shares 3,342,857,141 into converted were \$187,200,000HK approximately of amount .share ordinary per \$0.056HK of price conversion a at each \$0.01HK

warrants of Exercises) e(

the from share per \$0.23HK at issued were each \$0.01HK of shares 287,141,477 ,year the During \$66,000,000.HK of proceeds with warrants of utilisation

.Company the of shares existing the with respects all in passu pari rank shares ordinary new these All

OPTIONS SHARE 38.

the from years 10 for force in remain shall 2004 July 16 on adopted Scheme Option Share The .amended or terminated otherwise unless date adoption

at may but ,Company the of Directors the by determined be shall options the of price exercise The the of date the on share s'Company the of price closing Exchange Stock the) i (of highest the least shares s'Company the of price closing Exchange Stock average the) ii; (options share the of grant (iii (and; options share the of grant the of date the preceding immediately days trading five the for options which of respect in shares of number maximum The .share ordinary an of value nominal the share issued the of % 10 exceed not shall Scheme Option Share New the under granted be may .time to time from Company the of capital

and 2011 March 31 ended year the during lapsed nor exercised ,granted were options share No 2010.

2011 March 31 ended year the For

LEASES 39.

lessee — leases Operating

lease operating under ,sites plantation and properties office its of part leases Group The plantation for Leases .years 5 to 1 for terms for negotiated are properties for Leases .arrangements .years 7 to 1 for terms for negotiated are sites

cancellable-non under payments lease minimum future total had Group the 2011, March 31 At :follows as period reporting of end the at due leases operating

	2011	2010
	000'\$HK	000'\$HK
Within year one the In second fifth to ,years inclusive After five years	6,947 13,002 198	2,117 2,392 410
	20,147	4,919

lessor — leases Operating

rental lease-sub The .terms varying for tenant a to leased is property investment s'Group The .(\$682,000HK 2010: (\$759,000HK was 2011 March 31 ended year the during income

reporting of end the at leases operating cancellable-non under receivables rent minimum The :follows as are period

	2011	2010
	000'\$HK	000'\$HK
Within year one	337	298

2011 March 31 ended year the For

ISSUE AND COMPANY THE TO CREDIT OF LINE EQUITY THE OF GRANT 40. WARRANTS OF

Credit the ("Agreement Credit of Line Equity the into entered Company the 2010, January 5 On ,Advisors Investment GEM and") Global GEM ("Limited Fund Yield Global GEM with") Agreement Global GEM require to option an granted been has Company the which to pursuant ,")GEMIA (".Inc of price closing the at Company the of shares of worth million \$300HK to up for subscribe to Line Equity the under structured subscription of date the on Exchange Stock the on Shares the million 1,000 issued Company the ,Also .")Option "the (period commitment the during Credit of and Global GEM ,Company the 2010, January 19 On .Global GEM to Company the of warrants s'Company the in out set are details Further .Deed Amendment the into entered further GEMIA 2010. January 22 on dated circular

and (on commencing period commitment the during Company the by exercisable is Option The anniversary third the) i (of earlier the upon expiring and Agreement Credit the of date the) including been has Credit of Line Equity the which on date the) ii (and ,Agreement Credit the of date the of total for") Shares Option "the (shares issuing and allotting of way by Company the by utilised fully Option the exercising upon) million \$300HK .e.i (amount commitment total the to equals price issue .full in

specifying and notice drawdown a serving by Option the of part any exercise shall Company The drawdown any to respond shall Global GEM .thereunder Shares Option the of number proposed the Option of number final the ,alia inter ,out set shall which ,notice closing a delivering by notice subscribers other any or Global GEM the ,to issued and allotted and ,by subscribed be to Shares .date closing the on it by procured

an at consideration nil at warrants million 1,000 of total a issued Company the 2010, February 8 On to conditions the to pursuant adjustment to subject (share warrant per \$0.23HK of price exercise .Agreement Credit the to pursuant) Global GEM

2% to equivalent \$6,000,000,HK of fee commitment a GEMIA pay to required was Company The date the of anniversary first the before or on) i (million \$300HK of amount commitment total the of resulting proceeds the of receipt deemed or receipt s'Company the on) ii (or ,Agreement the of The .earlier is whichever ,Company the to Global GEM by issued be to notice closing first the from fee The 2010. March 31 at receivables other and trade as recognised was payable fee commitment receivables other in held account The .fulfilled was) i (condition as year current the during paid was .option the exercises Company the when premium share to transferred be will

2011 March 31 ended year the For

ISSUE AND COMPANY THE TO CREDIT OF LINE EQUITY THE OF GRANT 40. (Continued(WARRANTS OF

:below out set is year the during warrants the of movement and details The

Date grant of Exercise period Subscription price	8 February 2010 8 February 2010 7 to February 2013 \$0.23HK
		2011	2010
		000'	000'
At April 1		1,000,000	—
Granted during the year		—	1,000,000
Utilised during year the		) (287,141	—
31 At March		712,859	1,000,000

the of shares the for subscribe to exercised were) Nil 2010: (warrants 287,141,477 year the During .Company

2011 March 31 ended year the For

COMMITMENTS CAPITAL 41.

financial the in for provided not 2010 and 2011 March 31 at outstanding commitments Capital :follows as were statements

	Group			Company
	2011 000'\$HK	2010 000'\$HK	2011 000'\$HK	2010 000'\$HK
Contracted not but provided for — acquisition of plantation assets
(i note( — acquisition of property plant , and	—	103,667	—	—
equipment and use land right — investment on properties under	4,089	29,948	1,283	—
development sale for (ii note (	184,715	—	—	—
	188,804	133,615	1,283	—

:Notes

• for Agreement Binding the into entered Group the ,statements financial the to 22 Note in disclosed As) i( approximately of deposit which of \$170,880,000,HK approximately than more not of consideration a not had \$103,667,000HK approximately of balance remaining the and paid been had \$67,213,000HK obtain to able not was Group the 2011, March 31 ended year the during ,However .for provided been was agreement the in stated commitment capital the ,period agreed an within area forest remaining the .period reporting of end the at released
• District Yiling City Yichang .No Rights Use Land owned-State of Grant the for Contract a to Pursuant) ii( the as to referred hereinafter (2006 December 29 dated Hao 438 Di) 2006 (Zi) He (Rang Guo Zeng Yi Yichang and District Yiling City Yichang of Bureau Resource Land the between made") Contract" approximately be would development the for investment total the that agreed was it ,Xinshougang development property the in incurred cost investment total the 2011, March 31 to Up 650,000,000.RMB \$39,700,000.HK was

LIABILITIES CONTINGENT 42.

laws Guyana .Guyana in regulations and laws various by regulated are operations s'Group The more become generally have life wild and environment the of protection the for regulations and and laws these of Some .future in stringent more become could and years recent in stringent The .Group the on liabilities and penalties ,expenses ,costs significant impose could regulations may which liabilities environmental any by affected adversely be may Group the of position financial of aware not are directors The .regulations and laws environmental new such under imposed be .report this of date the to up and period reporting the of end the at as liabilities environmental any s'Group the to attached conditions existing to violation any of aware not also are directors The .liabilities and penalties ,expenses ,costs significant any to subject or ,rights concession forest

2011 March 31 ended year the For

TRANSACTIONS PARTY RELATED 43.

• the of parties related are which ,subsidiaries its and Company the between Transactions) a( Other .note this in disclosed not are and consolidation on eliminated been have ,Company disclosed are parties related other and Group the between transactions of details than .statements financial these in elsewhere
• major following the had Group the ,statements financial these in elsewhere disclosed as Save) b( 2010: and 2011 March 31 ended years the during parties related with transactions

Related party	of Type transactions		For year the ended 31 March
relationship		Note	2011 000'\$HK	2010 000'\$HK
China Alliance International Holding Group Limited a( substantial shareholder the of Company (	Interest expense on promissory note	8	47,535	3,780
	Interest expense on convertible bond	8	32,540	5,853
		31 at As March
	of Type balances		2011 000'\$HK	2010 000'\$HK
	Promissory note	30	284,797	237,262
	Convertible bond	36	—	361,205

whose directors the of only comprised year the during management key of Members) c( .statements financial the to 11 Note in out set is remuneration

SUBSIDIARIES OF PARTICULARS 44.

			Proportion ownership	of interest	Principal activity
Name	of Place incorporation and operation	Issued fully and share paid /capital registered capital	Held the by /*Company subsidiaries %	Attributable to Group the %
Australian Service Cold Storage .S.N ( Ltd Pty) .W	Australia	A \$2,500,002 shares	* 100	100	Dormant
Seapower Resources Australia Ltd Pty	Australia	\$700,002A shares	100	100	Investment holding

102 Limited Group Resources Timber China 2011 Report Annual

2011 March 31 ended year the For

(Continued(SUBSIDIARIES OF PARTICULARS 44.

			Proportion ownership	of interest
Name	of Place incorporation and operation	Issued fully and share paid /capital registered capital	Held the by /*Company subsidiaries %	Attributable to Group the %	Principal activity
Seapower Resources Gosford Ltd Pty	Australia	A \$4,200,002 shares	100		Cold 100 storage warehousing
Seapower Resources Investment Ltd Pty	Australia	A \$2,000,002 shares	100	100	Investment holding
Allied National Ltd	British Virgin /Islands Kong Hong	share \$1US	* 100	100	Investment holding
Idea Best International Investment Limited	British Virgin Islands	share \$1US	* 100	100	Investment holding
Bondwell International Group Limited	British Virgin Islands	share \$1US	* 100	100	Investment holding
China Timber Maritime Limited	British Virgin Islands	HK \$20,000,000	65	65	Construction of barges
Sunshine Delight Limited	British Virgin Islands	share \$1US	* 100	100	Investment holding
Jaling Forest Industries .Inc	Guyana	\$500,000G shares	95	95	Timber logging
Garner Forest Industries .Inc	Guyana	\$100,000G shares	100	100	Timber logging
Unisea Wood Development .Inc	Guyana	\$10,000G	* 100	100	Dormant
Cheer Luck Technology Limited	Kong Hong	share \$1HK	100	100	Investment holding
China Solartronics Technology Limited	Kong Hong	share \$1HK	* 100	100	Dormant
Glory Success Trading Limited	Kong Hong	HK shares \$10	* 100	100	Timber trading log and manufacturing and of sale furniture and handicrafts
Seapower Investment (China ( Limited	Kong Hong	\$10,000HK shares	* 100	100	Investment holding
Smart Fancy China ( Limited)	Kong Hong	share \$1HK	* 100	100	Investment holding

2011 March 31 ended year the For

(Continued(SUBSIDIARIES OF PARTICULARS 44.

			Proportion ownership	of interest
Name	of Place incorporation and operation	Issued fully and share paid /capital registered capital	Held the by /*Company subsidiaries %	Attributable to Group the %	Principal activity
Triumph Kind Investment Limited	Kong Hong	share \$1HK	* 100	100	Investment in property
Triumph Max Investment Limited	Kong Hong	HK share \$100	* 100	100	Investment holding
Vastrich Corporation Limited	Kong Hong	share \$1HK	* 100	100	Investment holding
Wide Forest Limited	Kong Hong	share \$1HK	* 100	100	Investment holding
W Forest J& Resources Development Limited	Kong Hong	\$10,000HK shares	95	90.25	Deregistered July in 2010
中國國際資源控股集團有限公司	Kong Hong	share \$1HK	* 100	100	Investment holding
樹人木業 大埔( 有限公司)	'People Republic s China of	RMB 102,175,000	100	100	Forest ,operation timber logging and tree plantation
樹人苗木組培 大埔( 有限公司)	'People Republic s China of	RMB 4,721,500	100	100	Plantation and trading seedling of
興寧樹人木業有限公司	'People Republic s China of	RMB 30,000,000	100	100	Production sale and oil-tea of
樹人木業 深圳( 有限公司)	'People Republic s China of	RMB 43,773,024	100	100	log Timber ,trading manufacturing and of sale furniture and handicrafts
陽東縣樹人木業有限公司	'People Republic s China of	RMB 1,000,000	100	100	Processing and manufacturing of timber products
東莞樹人木業有限公司	'People Republic s China of	RMB 153,673,000	100	100	Investment holding
廣州樹人裝修設計有限公司	'People Republic s China of	RMB 1,000,000	100	100	Deregistered June in 2010
首控 )北京( 管理咨詢有限公司	'People Republic s China of	RMB 2,000,000	100	100	Investment holding
宜昌新首鋼房地產開發有限公司	'People Republic s China of	RMB 20,000,000	100	100	Property development asset and management

2011 March 31 ended year the For

MANAGEMENT RISK FINANCIAL 45.

,risk rate interest are instruments financial and business s'Group the from arising risks main The the by limited are risks These .risk market and risk liquidity ,risk credit ,risk currency foreign .below described practices and policies management financial s'Group

risk rate Interest) a(

and bond convertible ,borrowings from arises mainly risk rate-interest value fair s'Group The .respectively statements financial the to 30 and 36 34, Notes in disclosed as note promissory expose which rates fixed at issued were note promissory and bond convertible ,Borrowings as risk rate-interest flow cash no has Group The .risk rate-interest value fair to Group the any used not has Group The .rates interest floating bear which borrowings no are there .rates interest in fluctuations potential hedge to instruments financial

the at borrowings rate fixed s'Group the of profile rate interest the details table following The .period reporting the of end

	Group
	2011		2010
	Effective		Effective
	interest rate		interest rate
	) %(	000'\$HK	( ) %	000'\$HK
Fixed rate borrowings Borrowings Convertible bond Promissory note	— 12.08 11.82	— 263,112 284,797	6.1065 12.08 11.82	5,696 361,205 237,262
		547,909		604,163

balances bank rate variable s'Group the of profile rate interest the details table following The .period reporting of end the at

	2011		2010
	Effective		Effective
	interest rate		interest rate
	) %(	000'\$HK	( ) %	000'\$HK
Variable rate cash and
bank balances	0.01 4.75 to	481,696	0.01 4.02 to	19,060

in points basis 100 of decrease/increase general a that estimated is it 2011, March 31 At s'Group the increase/decrease would ,constant held variables other all with ,rates interest approximately by profits retained the decrease/increase and expense tax income after loss .(\$190,600HK 2010: (\$4,767,000HK

2011 March 31 ended year the For

(Continued(MANAGEMENT RISK FINANCIAL 45.

risk currency Foreign) b(

transactions the of most with jurisdiction local their in operated mainly companies group The to exposure significant have not did and operation the of currency functional their in settled .rates exchange currency foreign in changes from resulting risk

risk Credit) c(

.receivables other and trade its to attributable primarily is risk credit s'Group The are risks credit these to exposures the and place in policy credit a has Management .basis ongoing an on monitored

customers all on performed are evaluations credit individual ,receivables trade of respect In history past' customers the on focus evaluations These .amount certain a over credit requiring information account into take and ,pay to ability current and due when payments making of the which in environment economic the to pertaining as well as customers the to specific trade of condition financial the on performed is evaluation credit Ongoing .operate customers .customers from collateral obtain not does Group the ,Normally .receivables

characteristics individual the by mainly influenced is risk credit to exposure s'Group The an has also operate customers which in industry the of risk default The .customer each of has Group the ,period reporting of end the At .extent lesser a to but risk credit on influence total the of) 97% 2010: (79% and) 69% 2010: (45% as risk credit of concentration certain a trade largest three the and debtor trade largest s'Group the from due was receivables trade .debtors

from arising risk credit to exposure s'Group the of respect in disclosures quantitative Further .statements financial the to 27 Note in out set are receivables other and trade

cash and cash comprise which ,assets financial other s'Group the of risk credit The the to equal exposure maximum a with ,counterparty the of default from arises ,equivalents .instruments these of amount carrying

2011 March 31 ended year the For

(Continued(MANAGEMENT RISK FINANCIAL 45.

risk Liquidity) d(

maintains it that ensure to requirements liquidity its monitor regularly to is policy s'Group The .term longer and short the in requirements liquidity its meet to cash of reserves sufficient

period reporting of end the at maturities contractual remaining the details table following The financial derivative and liabilities financial derivative-non s'Company the and s'Group the of interest including (flows cash undiscounted contractual on based are which ,liabilities end the at current rates on based ,floating if or ,rates contractual using computed payments :pay to required be can Company the and Group the date earliest the and) period reporting of

Group The	Carrying amount 000'\$HK	Total contractual undiscounted flow cash 000'\$HK	Within year 1 on or demand 000'\$HK	than More but year 1 than less years 2 000'\$HK	than More 2 but years than less years 5 000'\$HK	than More years 5 000'\$HK
2011 Trade other and payables	92,722	92,722	92,722	—	—	—
Promissory note	284,797	284,797	284,797	—	—	—
due Amount joint a to
venture partner	59,270	59,270	59,270	—	—	—
Amount due director a to	12,446	12,446	12,446	—	—	—
Borrowings	6,164	6,164	6,164	—	—	—
Convertible bond	263,112	301,041	—	301,041	—	—
Acreage fees payable	11,020	11,020	519	519	1,557	8,425
	729,531	767,460	455,918	301,560	1,557	8,425
	000'\$HK	000'\$HK	000'\$HK	000'\$HK	000'\$HK	000'\$HK
2010
Trade other and payables	50,778	50,778	50,778	—	—	—
Promissory note	237,262	287,875	83,750	82,550	121,575	—
Amount due director a to	2,000	2,000	2,000	—	—	—
Borrowings	5,696	5,696	5,696	—	—	—
Convertible bond	361,205	500,315	—	—	500,315	—
Acreage fees payable	11,083	11,083	519	519	1,557	8,488
	668,024	857,747	142,743	83,069	623,447	8,488

2011 March 31 ended year the For

(Continued(MANAGEMENT RISK FINANCIAL 45.

(Continued (risk Liquidity) d(

The Company	Carrying amount 000'\$HK	Total contractual undiscounted flow cash 000'\$HK	Within year 1 on or demand 000'\$HK	than More but year 1 than less years 2 000'\$HK	than More 2 but years than less years 5 000'\$HK	than More years 5 000'\$HK
2011
Trade other and payables	7,985	7,985	7,985	—	—	—
Promissory note Amount due director a to	284,797 12,446	284,797 12,446	284,797 12,446	— —	— —	— —
Convertible bond	263,112	301,041	—	301,041	—	—
	568,340	606,269	305,228	301,041	—	—
	000'\$HK	000'\$HK	000'\$HK	000'\$HK	000'\$HK	000'\$HK
2010
Trade other and payables	14,955	14,955	14,955	—	—	—
Promissory note	237,262	287,875	83,750	82,550	121,575	—
Amount due director a to	2,000	2,000	2,000	—	—	—
Convertible bond	361,205	500,315	—	—	500,315	—
	615,422	805,145	100,705	82,550	621,890	—

risk Market) e(

share own s'Company the in changes from arising risk price equity to exposed is Group The of values fair the underlie instruments equity own s'Company the that extent the to price Group the ,period reporting of end the At .Group the of liabilities financial other or derivative bond convertible the to attached option redemption early the through risk this to exposed is .statements financial the to 36 Note in disclosed as Company the by issued

analysis Sensitivity

,instruments financial s'Group the includes risk price equity on analysis sensitivity The corresponding their in changes of because fluctuate will flow cash future or value fair which had instruments equity respective the of prices the If .price equity s'asset underlying or 2010:) \$67,063,000HK by increase/decrease would tax after loss ,lower/higher 10% been 2010:) 67,063,000HK by decrease/increase would reserve s'Group the and) \$63,912,000HK .(\$63,912,000HK

2011 March 31 ended year the For

MANAGEMENT RISK CAPITAL 46.

a as continue to ability s'Group the safeguard to are capital managing when objectives s'Group The and stakeholders other for benefits and shareholders for returns provide to order in concern going .capital of cost the reduce to structure capital optimal an maintain to

of amount the adjust may Company the ,structure capital the adjust or maintain to order In to assets sell or shares new issue ,shareholders to capital return ,shareholders to paid dividends .debt reduce

.ratio gearing the of basis the on capital monitors Group the ,industry the in others with Consistent March 31 at ratios gearing The .assets total by divided liabilities total as calculated is ratio This :follows as are 2010 and 2011

	2011 000'\$HK	2010 000'\$HK ( Restated (
Total liabilities	856,789	790,384
Total assets	3,107,925	2,538,348
Gearing ratio	27.6%	31.1%

RISK NATURE 47.

The .levels adequate at wood harvest to ability the on significantly depends revenue s'Group The may plantations the in trees the of growth the and concessions the in wood harvest to ability conditions Weather .disasters natural and conditions weather local unfavourable by affected be ,earthquakes as such disasters natural and windstorms and cyclones ,droughts ,floods as such severe of occurrence The .events such of examples are pests and infestation insect ,disease ,fire in harvesting for available trees of supply the diminish may disasters natural or conditions weather in trees the of growth the or operations logging s'Group the impede otherwise or ,concessions the produce to ability s'Group the on effect adverse material a have may turn in which ,plantations the .manner timely a and quantities sufficient in products the

transportation s'Group the of condition the affect adversely may weather bad ,Moreover the to concessions timber the from timber supply to Group the for critical is which ,infrastructure utilising for strategy a developed has Group The .customers and plants manufacturing s'Group unfavourably be may operations daily its but ,stockpiling and modes transportation different .reasons other or weather bad to due transportation of interruption by affected

2011 March 31 ended year the For

BY LIABILITIES FINANCIAL AND ASSETS FINANCIAL OF SUMMARY 48. CATEGORY

31 at recognised as liabilities financial and assets financial s'Group the of amounts carrying The :follows as categorised be may 2010 and 2011 March

	2011 000'\$HK	2010 000'\$HK
Financial assets Derivative financial instrument Loans and receivables ( including cash and bank balances (	213,094 619,317	411,498 30,513
Financial liabilities Financial liabilities measured at amortised cost	855,215	788,810

:follows as determined are liabilities financial and assets financial of values fair The) a(

such Where .prices quoted using calculated are instruments derivative of value fair The applicable the using performed is analysis flow cash discounted a ,available not are prices pricing option and ,derivatives optional-non for instruments the of duration the for curve yield .derivatives option for models

• level by value fair at carried instruments financial of analysis an provides table following The) b( :hierarchy value fair of
• ;liabilities or assets identical for markets active in) unadjusted (prices Quoted 1: Level
• for observable are that 1 Level within included prices quoted than other Inputs 2: Level from derived .e.i (indirectly or) prices as .e.i (directly either ,liability or asset the and); prices
• data market observable on based not are that liability or asset the for Inputs 3: Level .(inputs unobservable(

31 March 2011	1 Level 000'\$HK	2 Level 000'\$HK	3 Level 000'\$HK	Total 000'\$HK
Assets
Derivative financial instrument	—	213,094	—	213,094
31 March 2010	1 Level 000'\$HK	2 Level 000'\$HK	3 Level 000'\$HK	Total 000'\$HK
Assets

2011 March 31 ended year the For

PERIOD REPORTING THE AFTER EVENTS 49.

subscription proposed a to relating intent of letter a into entered Company the 2011, January 12 On 內蒙古准 ("Ltd Company Expressway Haul Heavy Zhunxing Mongolia Inner in interest equity an for in ,PRC the of laws the under established company a ,")Zhunxing") ("興重載高速公路有限責任公司 s'Company the in out set are which of details Further .cash in 3,000,000,000RMB of amount the 2011. January 13 dated announcement

capital first the into entered ,subsidiary its through ,Company the 2011, April 21 on ,nutshell a In consideration the at interest equity 11% its of acquisition the for Zhunxing with agreement injection The .")Agreement Injection Capital First "the) (million \$602HK approximately (million 500RMB of a into entered further ,subsidiary its through ,Company the 2011, May 26 On .venture joint foreign-Sino a into transformed been has Zhunxing and 2011 May 9 on completed was acquisition said at interest equity 40% its of acquisition the for Zhunxing with agreement injection capital second the of completion Upon .)million \$2,190HK approximately (million 1,818RMB of consideration the Zhunxing in interest equity 51% of control in be will Group the ,agreement injection capital second in disclosed are transaction the of Details .Company the of subsidiary a become will Zhunxing and 2011. May 26 dated Company the of announcement the

equity 66% of total a acquire to obliged not but option an granted been has Group the ,addition In .Agreement Injection Capital First the under Zhunxing in interest

INFORMATION FINANCIAL OF SUMMARY

,years financial five last the for Group the of liabilities and assets ,results consolidated summarised The :below out set were ,Group the of statements financial consolidated audited the from extracted as

		Year	ended 31 March
	2007 HK 000'\$	2008 HK 000'\$	2009 HK 000'\$	2010 HK 000'\$ ( Restated (	2011 HK 000'\$
RESULTS
Turnover	10,380	33,382	17,841	21,171	13,332
Loss( profit/) from operations Finance costs	(13,975) (426)	19,445 —	(70,458) (799)	27,286) (9,633)	) ( (157,334 (184)
Loss( profit/) before income tax expense Income tax expense	(14,401) (434)	19,445 346	(71,257) (185)	36,919) 248	) ( (157,518 (12)
Loss( profit/) for year the	(14,835)	19,791	(71,442)	36,671)	) ( (157,530
Attributable :to Owners the of Company -Non controlling interests	(14,245) (590)	21,211 (1,420)	(67,436) (4,006)	(33,119) (3,552)	153,670) ( (3,860)
	(14,835)	19,791	(71,442)	36,671)	) ( (157,530
ASSETS AND LIABILITIES
Total assets Total liabilities -Non controlling interests	330,438 ) (105,215 ) (128,926	1,193,081 (43,356) (26,839)	1,112,912 (38,521) (22,971)	2,538,348 790,384) (19,884)	3,107,925 ) ( 856,789 ( (15,198)
Shareholders funds'	96,297	1,122,886	1,051,420	1,728,080	2,235,938

properties major s'Group the of Particulars

use own s'Group the for held Properties 1.

payments lease prepaid and buildings Leasehold) a(

Location	Lease expiry	Approximate gross floor area (m .sq(	Attributable interest to the Group %
7, Level Xinruike Building Futian Trade Zone Futian District Shenzhen PRC	2,051	2,736.75	100

payments lease prepaid and development under property in included land Leasehold) b(

Location	Lease expiry	Approximate gross floor area (m .sq(	Attributable interest to the Group %
Meiziya Village Xiaoxita Yiling District Yichang City Hubei Province The People s' Republic China of	The property is subject to right a to of use till land 28 December 2046 for commercial , tourism and convention purpose till and 28 December for 2076 residential purpose	587,726.09	100

purpose rental for held Property 2.

property investment — warehouse storage Cold

Location	Lease expiry	Approximate gross floor area (m .sq(	Attributable interest to the Group %
Central Coast Cold Storage Lots 120 Racecourse Road West Gosford	Freehold	10,520	100

Australia ,Wales South New