Nice catch. I need to start thoroughly examining assets and...

Nice catch. I need to start thoroughly examining assets and liabilities, especially for these Chinese companies.

See page 42 of the 2016 annual report available from the ASX.

My reading is that the deferred tax liabilities are taxes that will need to be paid at some point up to 5 years in the future. This would mean that a significant portion of the $32.5 million the company has in cash will need to be allocated to pay off the future debt. This could explain why the company is not making acquisitions or investing its cash into more quickly increasing its heard size.

Not too big of a deal I guess, but the company is not as cashed up as it first appears, and compared to other Chinese companies. It still seems like a bargain, given earnings are up about 20% according to the 9 month update. CDC got a nice short term boost from the half year report (but fell again). Buying at $.11, with the intention of selling if we get a spike with the release of the annual report, and then rebuying again cheap later. I like the growth and value prospects of this and other Chinese shares, I can't see a sustained rally given the only long term direction for most of them is down.

Something will change. The earnings growth and hence dividend growth of Chinese companies won't be ignored forever. Anyoneelse have thoughts on CDC?