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FUTURE OUTLOOK
In order to mitigate the risks of relying on a single market, the Group will continue to explore the market
for financial institute application software in addition to the RCCs segment, including state-owned banks

that are undergoing radical reforms and other leading commercial banks in the PRC.

It is believed that the Group will explore potential market in the non-finance sector by leveraging on its
experiences gained from the provision of RCCs services, its leading position in the industry and its own
strengths. Meanwhile, the Group is proactively exploring to develop other markets, in particular, the
property development and investment market in addition to its information technology business to diversify
its income stream.
INTEREST-BEARING BANK BORROWINGS
During the period under review, the Group has interest-bearing bank borrowings of RMB30,000,000 with
interest at rate of 8.217% per annum (2006: NIL).
LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE
During the year, the Group obtained a one-year fixed rate term loan facility of RMB30 million from a bank,
which is designated for financing the property project in Laoshan District (the “Project”). The bank loan
facility is secured by the Project’s land use rights. At 31 December 2007, the available credit facility from a
bank amounted to RMB120 million (2006: Nil) for financing the Project.
As at 31 December 2007, the Group had cash of approximately RMB28,354,000 (31 December 2006:
approximately RMB29,173,000). The gearing ratio (defined as total interest-bearing debts divided by
shareholder’s equity) was 25.7% (31 December 2006: 0%).
During the year ended 31 December 2007, the Group did not employ any material financial instrument for
hedging purposes.
FOREIGN EXCHANGE
Since most of the revenue generated from the sale of products by the Group and the payment for
purchases of materials, components and equipment are in RMB, the Directors believe that the Group will
have sufficient foreign exchange to meet its foreign exchange requirements. The Group has not experienced
any material difficulties or effects on its operations or liquidity as a result of fluctuations in currency