Annual Report 2011 - QuamIR

Directors’ ReportThe directors (the “Directors”) of Sino Prosper State Gold Resources Holdings Limited (the“Company”) present their annual report and the audited consolidated financial statementsof the Company and its subsidiaries (collectively the “Group”) for the year ended 31 March2011.PRINCIPAL ACTIVITIESDuring the past fiscal year, the principal activity ofthe Company is investment holding. The principalactivities of the Group are investment holding,investment in energy and natural resources(including precious metals) related projects in thePeople’s Republic of China (“PRC”). Details of thesubsidiaries are set out in note 17 to the financialstatements.RESULTS AND APPROPRIATIONSThe Group’s loss for the year ended 31 March 2011and the state of affairs of the Group as at that dateare set out on pages 36 to 122 of this annual report.The Directors do not recommend payment of anydividend in respect of the financial year ended 31March 2011.FINANCIAL SUMMARYA summary of the results and of the assets andliabilities of the Group for the last five financialyears is set out on page 123 of this annual report.PROPERTY, PLANT ANDEQUIPMENTDetails of movements in property, plant andequipment of the Group during the year are set outin note 16 to the consolidated financial statements.SHARE CAPITAL, SHARE OPTIONSAND WARRANTSDetails of movements in the Company’s sharecapital, share options and warrants during the yearare set out in notes 31, 32 and 34 respectively, tothe consolidated financial statements.RESERVESDetails of movements in the reserves of the Groupand the Company during the year are set out onpage 40 and in note 33 to the consolidated financialstatements, respectively.Under the Companies Law of the Cayman Islands,share premium as received in the share premiumaccount is distributable to shareholders of theCompany provided that immediately following thedistribution or payment of dividend, the Company isable to pay its debts as they fall due in the ordinarycourse of business. As at 31 March 2011, thereserves of the Company available for distributionto shareholders amounted to approximatelyHK$950,705,000 (2010: HK$222,825,000).MAJOR CUSTOMERS ANDSUPPLIERSIn the year under review, sales to the Group’s fivelargest customers accounted for 99.4% of the totalsales for the year and sales to the largest customerincluded therein amounted to 91.1%. Purchasesfrom the Group’s five largest suppliers accountedfor 96.8% of the total purchases for the year andpurchases from the largest supplier included thereinamounted to 85.8%.None of the Directors or any of their associates orany shareholders (which, to the best knowledge ofthe Directors, own more than 5% of the Company’sissued share capital) had any beneficial interest inthe Group’s largest customer or supplier.Annual Report 201127