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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.

Analysis by business segment
The following is an analysis of the Group’s turnover for the year ended 31 December 2007 by business
segment:
For the year ended 31 December
2007 2006
RMB’000 % RMB’000 %
Provision of system integration services 2,150 30.9 8,670 36.9
Development of customised software products 516 7.4 3,310 14.1
Sale of software and hardware products 2,977 42.7 7,904 33.7
Provision of maintenance and other services 1,323 19.0 3,582 15.3
Total 6,966 100 23,466 100

As disclosed in the 2007 Interim Report of the Group, the Group has made a provision of RMB11,469,000
for impairment loss of loan receivables. The provision represented the non-repayment of the loans from
two companies named 青島易貝科技有限公司 (Qingdao Yi Bei Technology Limited) and 青島銀通科技開
發有限公司 (Qingdao Yin Tong Technology Development Limited) (collectively, the “Companies”) (both are
independent third parties) in the amount of RMB1,722,000 and RMB9,747,000 respectively since the
Group has learnt that the Companies are under the process of liquidation. Despite repeated demands
made by the Group, the Companies have failed to make full repayment.

Turnover and gross profit margin
For the year ended 31 December 2007, consolidated turnover and cost of sales of the Group was
RMB6,966,000 representing a decrease of 70.3% from RMB23,466,000 in 2006 and RMB5,463,000
representing a decrease of 67.0% from RMB16,556,000 in 2006, respectively. The gross profits decreased
by 78.2% to RMB1,503,000 from RMB6,910,000 in 2006 as a result of the reduction in the number of
customers which led to a significant decline in turnover.

OVERVIEW
During the reporting year, the Group was principally engaged in two major business segments, which were
information technology and property development and investment respectively.
Information Technology
The Group’s Information Technology segment is devided into four operating devisions, including (i) provision
of system integration services; (ii) research and development of customized software products; (iii) sale of
software and hardware products; and (iv) provision of maintenance and other services. During the reporting
year, the main customers of the Group are Rural Credit Co-operatives (“RCCs”) in the PRC.

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.