Annual Report 2012 - Haitian International Holdings Ltd.

Notes to the Consolidated Financial Statements (Continued)
(All amounts in RMB unless otherwise stated)
23. Deferred Income Tax — Group (Continued)
Withholding tax is levied on dividends to be declared to foreign investors from the foreign investment enterprises established
in Mainland China in respect of earnings earned after 31 December 2007. The Group’s subsidiaries in Mainland China are
held by Guo Hua Enterprises Group Limited, which is a company incorporated in Hong Kong and the beneficial owner of these
subsidiaries, and accordingly the applicable withholding tax rate is 5%.
The Group provide for the deferred income tax liabilities on the unremitted earnings except for those amount expected to
be reinvested. Unremitted earnings that deferred income tax liabilities have not been recognised totaled RMB1,541,660
thousand at 31 December 2012 (2011: RMB1,315,633 thousand). As at 31 December 2012, deferred income tax liabilities of
RMB77,083 thousand (2011: RMB65,782 thousand) have not been recognised for the withholding tax that would be payable
on such unremitted earnings of certain subsidiaries.
24. Sales and Segment Information
2012 2011
RMB’000 RMB’000
Sales of plastic injection moulding machines and related products 6,335,642 7,027,607
The chief operating decision-maker has been identified as the executive committee, which comprises all executive directors
and senior management. The executive committee reviews the Group’s internal reporting in order to assess performance and
allocate resources. Based on these internal reports, the executive committee has determined that no segment information is
presented as substantially all of the Group’s sales and operating profits are derived from the sales of plastic injection moulding
machines, and over 90% of the Group’s productions and operating assets are located in Mainland China, which is considered as
one segment with similar risks and returns.
The Group is domiciled in Mainland China. Analysis of its sales to external customers in different countries, based on the
customers’ locations is as follows:
2012 2011
RMB’000 RMB’000
Mainland China 4,295,769 4,989,601
Hong Kong and overseas countries 2,039,873 2,038,006
6,335,642 7,027,607
Annual Report 2012 Haitian International Holdings Limited 87