China XLX Fertiliser Ltd

NOTES TO THE FINANCIAL STATEMENTS31 December 200814. Investment in subsidiaryCompany2008 2007Rmb’000 Rmb’000Unquoted shares, at cost 800,000 400,000The Company had the following subsidiary as at 31 December 2008:Name of companyCountry ofincorporation andplace of businessPrincipal activitiesEquity interest heldby the Group2008 2007% %Henan XinlianxinFertiliser Co., Ltd.People’s Republicof ChinaManufacture and sale ofurea, compound fertiliser,methanol, liquid ammoniaand ammonia solution; andto carry out business relatingto import and export ofgoods100 10015. InventoriesGroup2008 2007Rmb’000 Rmb’000Balance Sheet:Raw materials 178,379 111,789Parts and spares 13,112 9,156Work-in-progress 2,123 1,154Finished goods 41,351 54,402Goods-in-transit – 2,024Total inventories at lower of cost and net realisable value 234,965 178,525Income Statement:Inventories recognised as an expense in cost of sales 1,488,943 963,203Inclusive of the following charge:- Inventories written down 6,000 –Annual Report 200870