In FY2011, in anticipation of the increasing demand of our beverage products, we have invested more than half of the capex we spent in that year in the acquisition of production facilities for beverage products. The rest of the capex in FY2011 were spent on the acquisition of machineries for our upstream business and enhancement/replacement of infrastcurture on our farmland.
We still have sufficient time to plan for the repayment of our CB which is due in April 2013. While the cash we maintain is more than sufficient in repaying our CB, management is seeking different options available to keep a balance between growth and cost to capital under current global capital markets. We have not made a decision as of this moment.
In view that the overall volatile market sentiments will continue, and challenging operating environment in China is lingering, the board has decided to hold the interim dividend in Fy2012. We will continue to monitor capital market and decide the dividend policy by the end of FY2012.
Export market has been a key market to our business and we have seen very stable growth from overseas sales in the last couple of years. In FY2011 we made a strategic shift in distributing our sales overseas by engaging import/export agents. In doing so, we can streamline our resources, focus on our domestic markets and leverage agents’ extensive network to enter new markets. While our domestic sales performance has shown significant growth in the last year, we will continue expanding the overseas market in order to achieve steady growth.
We are not in the oil industry and not sure whether we are not in a position to comment on this.