Quarterly, page-278

1.21 DIVIDENDS
Pursuant to the current PRC Company Law, the Chinese Subsidiaries are required to transfer 10%
of their profi t after tax to a statutory reserve until the surplus reserve balance reaches 50% of their
registered capital. For the purposes of calculating the transfer to this reserve, the profi t after taxation
shall be the amount determined under the PRC accounting standards. The ability of the Chinese
Subsidiaries to pay dividends is also subject to regulations in the PRC. For further information, see
Section 7.1. 8.
The Company expects to pay a dividend of 25% of the Group’s net profit after tax with respect to
earnings generated from completion of the Offer to 31 December 2013. Thereafter the Company
is targeting a dividend pay-out ratio of at least 25% of the Group’s net profi t after tax. Depending on
available profi ts and the fi nancial position of the Company, it is the current intention of the Board to pay
an annual dividend each September.

Net profit after tax for 2013 is $13.9m, if they make similar profit, we can expect a dividend of approx. 0.74c, yield around 10%.

These seed investors cost 1.56c per share, so they made 350% capital gains if they sold at 7c.