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Chairman’s Statement
Mitigating the Risk of Relying on a Single Market and Turning a New Page by Proactively
Developing New Business
On behalf of the board of directors (the “Board”) of Zhongtian International Limited (the “Group”) and its
subsidiaries (collectively the “Group”), I present the annual results and the audited financial statements of
the Group for the year ended 31 December 2007.

The Group faced arduous business environment in 2007. During the year, the provision of electronic
network services for RCCs has been the major source of income of the Group, representing approximately
over 80% of the Group’s total turnover. However, as most of the RCCs electronic network construction
projects have been upgraded from a municipal or local level to a provincial level and the projects which
are in local level have been under a process of revision currently, the major source of income has been
significantly affected. The turnover for the year ended 31 December 2007 was approximately RMB6,966,000,
representing a significant decrease of 70.3% as compared with the corresponding period last year.
Although the Group has already realized the risk of relying on a single market and committed to proactively
develop non-RCCs banking and finance sector to reduce its reliance on RCCs business and diversify its
income stream, the Group is still negotiating with its potential customers from this sector and has not
entered into any material contract during the year under review. As a result, the contribution from non-
RCCs banking and finance sector was unsatisfactory. The Group is also under negotiations with its
potential customers from non-banking and finance sector and the contribution from this sector was less
than remarkable during the year under review.
The Group’s management believes that diversifying its business can help mitigating the risk derived from
its only reliance on electronic network construction for RCCs related or non-RCCs related or banking and
finance sector. In addition to its information technology business, the Group is proactively developing
other markets. The Group has been proactively exploring to develop the property development and
investment market. During the year, the Group has invested considerable resources in developing a piece
of commercial land in Laoshan District, Qingdao City which was obtained through the acquisition of 100%
interest in 青島中天軟件園有限公司 (Qingdao Zhongtian Software Park Company Limited) (“Zhongtian
Software”) at the end of 2006. The Group intended to utilize part of the land for the development of its
R&D centre and the remaining for long term property investment or for sale. Through the development of
the abovementioned land, the Group aims to start another new business to reduce the risks derived from
its heavy reliance on a single market and diversify its business. During the reporting year, there was no
contribution to the Group’s turnover and result from this new segment as it is still at the construction
stage.
In retrospect, the Group has consolidated its leading position and gained excellent reputation and solid
goodwill in the financial institute application software market with the continuous support from its dedicated
employees and team efforts. Looking ahead, the Group’s management believes that the Group will turn a
new page on a path adhering to its traditions, at the same time, developing new business and making
more returns to its shareholders.