Stock Code Vk : 372.HK
(Incorporated in Bermuda with limited liability)
( . =S~ )
China
Enterprises
www.itc.com.hk

31
30
29
28
CORPORATE INFORMATION

CORPORATE CHART

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CHAIRMAN’S STATEMENT
9
REPORT ON REVIEW OF INTERIM
FINANCIAL INFORMATION

{hG9
27
5
3
1
CONDENSED CONSOLIDATED
INCOME STATEMENT

CCr
CONDENSED CONSOLIDATED
BALANCE SHEET

Cr
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY

C)r
CONDENSED CONSOLIDATED
CASH FLOW STATEMENT

C|Ztr
NOTES TO THE CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

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LCONTENTS c
32

INTERIM REPORT 2007/2008 {h9
1

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Conyers Dill & Pearman.
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CORPORATE INFORMATION
BOARD OF DIRECTORS

Executive Directors
Chan Kwok Keung, Charles (Chairman)
Chau Mei Wah, Rosanna
(Deputy Chairman and Managing Director)
Chan Kwok Chuen, Augustine
Chan Fut Yan
Cheung Hon Kit
Independent Non-Executive Directors
Chuck, Winston Calptor
Lee Kit Wah
Shek Lai Him, Abraham, SBS, JP
AUDIT COMMITTEE

Lee Kit Wah (Chairman)
Chuck, Winston Calptor
Shek Lai Him, Abraham, SBS, JP
REMUNERATION COMMITTEE

Chuck, Winston Calptor (Chairman)
Chau Mei Wah, Rosanna
Lee Kit Wah
SECRETARY

Law Hon Wa, William
AUDITORS

Deloitte Touche Tohmatsu
LEGAL ADVISORS

Conyers Dill & Pearman (Bermuda)
Herbert Smith (Hong Kong)
Iu, Lai & Li (Hong Kong)
Richards Butler (Hong Kong)
PRINCIPAL BANKERS

Bank of China (Hong Kong) Limited
The Bank of East Asia, Limited
BNP Paribas
CITIC Ka Wah Bank Limited
The Hongkong and Shanghai Banking Corporation Limited
HSBC Bank Canada
UBS AG

Wing Hang Bank, Limited
Wing Lung Bank Limited

INTERIM REPORT 2007/2008 {h9
2
REGISTERED OFFICE

Clarendon House
2 Church Street
Hamilton HM 11
Bermuda
PRINCIPAL PLACE OF BUSINESS

30/F, Bank of America Tower
12 Harcourt Road
Central
Hong Kong
Tel : (852) 2831 8118
Fax : (852) 2973 0939
PRINCIPAL SHARE REGISTRAR AND
TRANSFER OFFICE

Butterfield Fund Services (Bermuda) Limited
Rosebank Centre
11 Bermudiana Road
Pembroke
Bermuda
BRANCH SHARE REGISTRAR AND
TRANSFER OFFICE

Tricor Secretaries Limited
26/F, Tesbury Centre
28 Queen’s Road East
Wanchai
Hong Kong
WEBSITE

www.itc.com.hk
STOCK CODE

Hong Kong Stock Exchange 372
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Clarendon House
2 Church Street
Hamilton HM 11
Bermuda

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Rosebank Centre
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Pembroke
Bermuda
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INTERIM REPORT 2007/2008 {h9
3
[ITC’s effective interest ((l~) ]
(Stock code – Listing place VkP )
CORPORATE CHART
AT 21ST DECEMBER, 2007

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@MM<J@@J9
ITC Corporation Limited
((l
(372-HKSE2Z )
See Corporation
Limited

(491-HKSE2Z )
ITC Properties
Group Limited
((
(199-HKSE2Z )
Paul Y. Engineering
Group Limited

(577-HKSE2Z )
PSC Corporation Ltd
]
(PSC-SGXc4Z )
MRI Holdings Limited
(MRI-ASXX4Z )
Burcon NutraScience
Corporation
%876;9HQWXUH([FKDQJH
(WKN 157793-FWB
l+4Z )
Hanny Holdings Limited
f
(275-HKSE2Z )
PYI Corporation Limited

(498-HKSE2Z )
China Enterprises
Limited
(CSHEF-OTC Securities Market)
Intraco Limited
cW
(INTRACO-SGXc4Z )
Tat Seng Packaging
Group Ltd.

(TAT SENG-SGXc4Z )
Wing On Travel
(Holdings) Limited
7V
(+.6(2Z )
49%26% 25%
[9%]63% 24%[17%] 5% [14%] 16% [27%] 55% 18% [28%] 57% [14%] 2%
1% [15%]
9%
11% [9%] 63% [4%] 29%
Hong Kong listed P
Overseas listed P

INTERIM REPORT 2007/2008 {h9
4
CORPORATE CHART
AT 30TH SEPTEMBER, 2007

<
@MM<>MJ
ITC Corporation Limited
((l
(372-HKSE2Z )
See Corporation
Limited

(491-HKSE2Z )
ITC Properties
Group Limited
((
(199-HKSE2Z )
Paul Y. Engineering
Group Limited

(577-HKSE2Z )
PSC Corporation Ltd
]
(PSC-SGXc4Z )
MRI Holdings Limited
(MRI-ASXX4Z )
Burcon NutraScience
Corporation
%876;9HQWXUH([FKDQJH
(WKN 157793-FWB
l+4Z )
Hanny Holdings Limited
f
(275-HKSE2Z )
PYI Corporation Limited

(498-HKSE2Z )
China Enterprises
Limited
(CSHEF-OTC Securities Market)
Intraco Limited
cW
(INTRACO-SGXc4Z )
Tat Seng Packaging
Group Ltd.

(TAT SENG-SGXc4Z )
Wing On Travel
(Holdings) Limited
7V
(+.6(2Z )
49%26% 25%
[8%]63% 24%[17%] [8%] 16% [27%] 55% 17% [28%] 57% [14%] 2%
4% [9%]
1%
14% [9%] 63% [4%] 29%
[ITC’s effective interest ((l~) ]
(Stock code – Listing place VkP )
Hong Kong listed P
Overseas listed P

INTERIM REPORT 2007/2008
5
CHAIRMAN’S STATEMENT
I am pleased to present to shareholders the interim report and
condensed consolidated financial statements of ITC Corporation
Limited (the “Company”) and its subsidiaries (the “Group”) for
the six months ended 30th September, 2007.
INTERIM DIVIDEND

The board of directors of the Company (the “Board”) has resolved
to pay an interim dividend of HK1.30 cents per ordinary share for
the six months ended 30th September, 2007 to holders of ordinary
shares whose names appear on the register of holders of ordinary
shares of the Company as at the close of business on 30th
January, 2008. The interim dividend is expected to be paid to
holders of ordinary shares of the Company by post on or about
14th March, 2008. The Board has also proposed that the interim
dividend should be satisfied in cash, with an option to elect scrip
dividend of ordinary shares, in respect of part or all of such
dividend. The market value of the ordinary shares to be issued
under scrip dividend proposal will be fixed by reference to the
average of the closing prices of the ordinary shares of the
Company for the three consecutive trading days ending 30th
January, 2008 less a discount of 5% of such average price or the
par value of ordinary shares, whichever is the higher. The proposed
scrip dividend is conditional upon
SCOPE OF REVIEW

We conducted our review in accordance with Hong Kong
Standard on Review Engagements 2410 “Review of Interim
Financial Information Performed by the Independent Auditor of
the Entity” issued by the Hong Kong Institute of Certified Public
Accountants. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with Hong Kong Standards on
Auditing and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly we do not
express an audit opinion.
CONCLUSION

Based on our review, nothing has come to our attention that
causes us to believe that the interim financial information is not
prepared, in all material respects, in accordance with HKAS 34.
Deloitte Touche Tohmatsu
Certified Public Accountants
Hong Kong, 21st December, 2007

INTERIM REPORT 2007/2008
28
CONDENSED CONSOLIDATED INCOME STATEMENT ]]
FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2007ZggVXgdH
(Unaudited)
Six months ended
30.9.2007 30.9.2006

Notes HK$’000 HK$’000
J2
XgdH
ZggVZgg
Www
Revenue]3 333,574 358,174
Cost of salesV/I(266,838) (305,947)
Gross profit;66,736 52,227
Other incomeI]4 7,540 –
Administrative expensesA(81,868) (32,765)
Gain on disposal of available-for-sale/6V/
investmentsB20,613 –
Other gains (losses), netIBf&X5 142,991 (14,860)
Finance costsI6 (46,296) (8,241)
Impairment loss recognised in respect6V/=
of available-for-sale investments&(20,960) –
Allowance for amounts due from associatesL!
and related companies!a(1,317) (1,415)
Loss on disposal and dilution of interests in/[n!
subsidiaries and associatesL!Bf&7 (74,400) (481)
Share of results of associates&L!86362,731 200,483
Profit before taxationP;375,770 194,948
Taxation8 (10,669) –
Profit for the periodP;9 365,101 194,948
Attributable to:h[{&j
Equity holders of the CompanyI!p5[303,318 195,753
Minority interestsppB61,783 (805)
365,101 194,948

Distributions|10 43,480 31,237
Earnings per sharep;11
Basic (HK cents)?I12.5 8.9
Diluted (HK cents)[9.9 7.5

INTERIM REPORT 2007/2008
29
CONDENSED CONSOLIDATED BALANCE SHEET ]
AT 30TH SEPTEMBER, 2007ZggVXgd
(Unaudited) (Audited)
30.9.2007 31.3.2007

Notes HK$’000 HK$’000
J22
ZggVZggV
XgdggdS
Www
Non-current assets t
Property, plant and equipmentJ8e@12 59,599 179,765
Investment propertiesJ812 5,058 150,421
Prepaid lease paymentska#86,332 87,437
Intangible assets830 4,580
Interests in associatesL!B13 2,377,592 1,594,047
Debt portion of convertible noteslpC175,033 274,304
Conversion options embedded in convertible noteslpCmlp14,763 98,466
Deposits paid for acquisition of subsidiariesn!2– 50,000
Deposits for acquisition of long-term investments2– 145,000
Deposits paid for acquisition of available-for-sale6V/
investments212,434 –
Payments for acquisition of interest in propertiesJ8B– 58,830
Available-for-sale investments6V/30,524 1,033,823
Deferred tax assets– 1,464
2,762,165 3,678,137

Current assets t
Inventories230 239
Prepaid lease paymentska#2,214 2,214
Other assetsI– 229,288
Debtors, deposits and prepaymentsek14 35,553 404,029
Margin account receivables139,086 17,523
Deposits paid for acquisition of investments held5o-
for trading2165,453 73,289
Amounts due from associatesL!303,099 500,050
Amounts due from related companies!123,068 7,262
Loans receivabler25,000 340,549
Financial assets designated at fair value through82;=Bf&
profit or lossD5,299 147,238
Investments held for trading5o-110,559 626,649
Tax recoverable– 1,438
Short-term bank deposits, bank balances and cashe$191,410 282,304
1,100,971 2,632,072

Current liabilities t
Margin account payables141,474 6,794
Creditors and accrued expenses15 42,206 91,884
Dividend payablep43,480 –
Amounts due to associatesL!490 163,015
Amounts due to related companies!669 –
Derivative financial instruments[DH2,134 222
Redeemable convertible preference shareslpp290,542 286,137
Tax payable– 63,977
Borrowings – due within one yearSQ>2,450 517,100
Bank overdrafts37,092 71,599
560,537 1,200,728

Net current assets t= 540,434 1,431,344
Total assets less current liabilities <t 3,302,599 5,109,481
Non-current liabilities t
Borrowings – due after one yearSQ>27,650 141,350
Convertible notes payablelpC– 556,980
Deferred tax liabilities2,844 39,091
30,494 737,421

Net assets = 3,272,105 4,372,060
Capital and reserves pI
Share capitalpI16 217,400 187,298
Share premium and reservespP3,054,705 2,623,128
Equity attributable to equity holders of the Company I!p5[&B 3,272,105 2,810,426
Conversion option reserve of a subsidiarySn!lp– 55,279
Minority interestsppB– 1,506,355
Total equity <B 3,272,105 4,372,060

INTERIM REPORT 2007/2008
30
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ]B
FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2007ZggVXgdH
Attributable to equity holders of the Company
I!p5[&
Conversion Share
Capital Property Investment Preference option option
Share Share Contributed Reserve on redemption Other revaluation revaluation Translation share Accumulated Minority reserve of reserve of
capital premium surplus acquisition reserve reserve reserve reserve reserve reserve profits Total interests a subsidiary a subsidiary Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
n! n!
pI J8 p p lp p
pI pP q I 3 ]P; pB
wwwwwwwwwwwwwwww
At 1st April, 2007ZggV,S187,298 280,179 1,108,927 (81,306) 908 3,525 6,664 (1,588) 53,096 868 1,251,855 2,810,426 1,506,355 55,279 – 4,372,060
Exchange differences arising fromlQ7.8[
translation of foreign operations3X– – – – – – – – 8,907 – – 8,907 3,798 – – 12,705
Share of post-acquisition reserve&L!
movements of associates– – – (202) – (1,834) – (73,671) 13,565 – 148 (61,994) (1,335) – – (63,329)
Gain on fair value changes of6V/;=
available-for-sale investments[B– – – – – – – 54,917 – – – 54,917 41,110 – – 96,027
Net (expenses) income\B
recognised directly in equity]X– – – (202) – (1,834) – (18,754) 22,472 – 148 1,830 43,573 – – 45,403
Profit for the periodP;– – – – – – – – – – 303,318 303,318 61,783 – – 365,101
Impairment loss on6V/=
available-for-sale investments&– – – – – – – 20,960 – – – 20,960 – – – 20,960
Released on disposal and dilution/[n!
of interests in subsidiariesB7– – – (2,686) – 1,241 – (7,919) (7,213) – – (16,577) (1,611,711) (55,099) (67) (1,683,454)
Released on disposal and dilution/[L!
of interests in associatesB7– – – 426 – 50 – (349) (433) – – (306) – – – (306)
Released on disposal of/6V/
available-for-sale investments7– – – – – – – (20,613) – – – (20,613) – – – (20,613)
Total recognised income and]
expenses for the period<X– – – (2,462) – (543) – (26,675) 14,826 – 303,466 288,612 (1,506,355) (55,099) (67) (1,272,909)
Recognition of equity-settledp
share-based payments––––––––––––––6969
Issue of sharesp30,000 185,488 – – – – – – – – – 215,488 – – – 215,488
Issue of shares on conversion of7llp
redeemable convertiblep
preference sharesp102 961 – – – – – – – (4) – 1,059 – – – 1,059
Released on conversion ofSn!3ll
convertible notes of a subsidiarypC7–––––––––––––(180)–(180)
Released on exercise of shareSn!4
options of a subsidiaryp7––––––––––––––(2)(2)
Distributions|– – – – – – – – – – (43,480) (43,480) – – – (43,480)
At 30th September, 2007ZggVXgd217,400 466,628 1,108,927 (83,768) 908 2,982 6,664 (28,263) 67,922 864 1,511,841 3,272,105 – – – 3,272,105
At 1st April, 2006Zgg,S183,750 282,782 1,108,927 (58,374) 908 3,470 467 15,259 25,691 871 446,194 2,009,945 22,064 – – 2,032,009
Exchange differences arising fromlQ7.8[
translation of foreign operations3X––––––––621––621–––621
Share of post-acquisition reserve&L!
movements of associates– – – (37,998) – (4,476) – (20,677) (989) – – (64,140) – 7,414 – (56,726)
Loss on fair value changes of6V/;=
available-for-sale investments[f&– – – – – – – (13,895) – – – (13,895) – – – (13,895)
Net (expenses) income\B
recognised directly in equity]X– – – (37,998) – (4,476) – (34,572) (368) – – (77,414) – 7,414 – (70,000)
Profit for the periodP;– – – – – – – – – – 195,753 195,753 (805) – – 194,948
Released on dilution of interests[L!B
in associates7– – – 3,737 – (68) – (73) (1,181) – – 2,415 – – – 2,415
Total recognised income and]
expenses for the period<X– – – (34,261) – (4,544) – (34,645) (1,549) – 195,753 120,754 (805) 7,414 – 127,363
Distributions|– – – – – – – – – – (31,237) (31,237) – – – (31,237)
At 30th September, 2006ZggXgd183,750 282,782 1,108,927 (92,635) 908 (1,074) 467 (19,386) 24,142 871 610,710 2,099,462 21,259 7,414 – 2,128,135

INTERIM REPORT 2007/2008
31
CONDENSED CONSOLIDATED CASH FLOW STATEMENT ]$t
FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2007ZggVXgdH
(Unaudited)
Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
J2
XgdH
ZggVZgg
ww
Net cash (used in) from operating activities8\{$X(114,744) 311,155
Net cash used in investing activities8\$X
Dilution of interests in subsidiaries, net of[n!Bd/
cash and cash equivalents disposed$~$=f(82,120) –
Disposal of partial interests in subsidiaries/n!B131,768 –
Disposal of interests in associates/L!B46,040 –
Proceeds from disposal of available-for-sale/6V/
investments{45,918 –
Investment in convertible noteslpC(69,964) (30,000)
Additions to available-for-sale investments#6V/(18,603) –
Investment in financial assets designated82;=B
at fair value through profit or lossf&D(158,279) –
Deposits for acquisition of long-term
investments2(110,000) –
Deposit in a financial institutionSD– (346,600)
Deposit paid for acquisition of additionalSL!X.B
interest in an associate2– (43,343)
OthersI(6,992) (32,742)
(222,232) (452,685)
Net cash from (used in) financing activitiesD8{\$X
Proceeds from issue of sharesp{215,488 –
Proceeds from issue of shares of a subsidiarySn!p{142,415 –
Repayments of bank borrowings>(31,162) –
Interest paidp(48,398) (2,747)
278,343 (2,747)
Net decrease in cash and cash equivalents$~$=fX(58,633) (144,277)
Cash and cash equivalents at beginning$~$=
of the periodf210,705 199,591
Effect of foreign exchange rate changesB2,246 (600)
Cash and cash equivalents at end7$~$=
of the periodf154,318 54,714
Analysis of the balances of cash and cash$~$=f
equivalents
Short-term bank deposits, bank balancese
and cash$191,410 107,403
Less: bank overdraftsj(37,092) (52,689)
154,318 54,714

INTERIM REPORT 2007/2008
32
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ]W
FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2007ZggVXgdH
1. BASIS OF PREPARATION

The condensed consolidated financial statements have been
prepared in accordance with the applicable disclosure requirements
of Appendix 16 to the Rules Governing the Listing of Securities on

2. PRINCIPAL ACCOUNTING POLICIES

The condensed consolidated financial statements have been
prepared on the historical cost basis except for certain properties
and financial instruments, which are measured at revalued amounts
or fair values, where appropriate.
The accounting policies used in the condensed consolidated
financial statements are consistent with those followed in the
preparation of the annual financial statements of the Company and
its subsidiaries (the “Group”) for the year ended 31st March, 2007.
In the current interim period, the Group has applied, for the first
time, a new standard, amendment and interpretations (“new
HKFRSs”) issued by the HKICPA, which are effective for the Group’s
financial year beginning 1st April, 2007. The adoption of these new
HKFRSs had no material effect on the results or financial position of
the Group for the current or prior accounting periods. Accordingly,
no prior period adjustment has been recognised.
The Group has not early applied the following new and revised
standards or interpretations that have been issued but are not yet
effective:
HKAS 23 (Revised) Borrowing Costs
1
HKFRS 8 Operating Segments
1
HK(IFRIC) – INT 12 Service Concession Arrangements
2
HK(IFRIC) – INT 13 Customer Loyalty Programmes
3
HK(IFRIC) – INT 14 HKAS 19 – The Limit on a Defined Benefit
Asset, Minimum Funding Requirement
and their Interaction
2
1
Effective for annual periods beginning on or after 1st January,
2009

2
Effective for annual periods beginning on or after 1st January,
2008

3
Effective for annual periods beginning on or after 1st July, 2008
The directors of the Company anticipate that the application of
these standards or interpretations will have no material impact on
the results and the financial position of the Group.
1. ?_
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INTERIM REPORT 2007/2008
33
Trading of
building
materials
Securities Other Property and
Finance investment investment investment machinery Unallocated Eliminations Consolidated
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

D N I J8 q J V
w w w w w w w w
REVENUE ]
External sales.V/28,871 268,518 27,629 465 2,547 5,544 – 333,574
Inter-segment salesV/14,204 – 998 2,586 – – (17,788) –
Total43,075 268,518 28,627 3,051 2,547 5,544 (17,788) 333,574
RESULT 86

Segment result8615,866 70,453 103,326 117 24 2,095 – 191,881
Unallocated corporateJ8
expenses(58,146)
Finance costsI(46,296)
Loss on disposal and/[
dilution of interests inn!
subsidiaries andL!B
associatesf&(74,400)
Share of results of&L!
associates86362,731
Profit before taxationP;375,770
Taxation(10,669)
Profit for the periodP;365,101
3. REVENUE AND SEGMENT INFORMATION

Business segments
For management purposes, the Group’s operations are organised
into five operating divisions, namely finance, securities investment
(investments held for trading), other investment, property investment
and trading of building materials and machinery. These divisions are
the basis on which the Group reports its primary segment information.
Six months ended 30th September, 2007
3. ]
8
1M#dIZ8}d9
DeN5o-eI
eJ8qf8
IaI?_f
ZggVXgdH

INTERIM REPORT 2007/2008
34
Trading of
building
materials
Securities Other Property and
Finance investment investment investment machinery Unallocated Eliminations Consolidated
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

DNIJ8qJV
wwwwwwww
REVENUE ]
External sales.V/28,552 311,934 9,340 349 2,494 5,505 – 358,174
Inter-segment salesV/9,654 – – 2,563 – – (12,217) –
Total38,206 311,934 9,340 2,912 2,494 5,505 (12,217) 358,174
RESULT 86

Segment result86813 5,100 9,042 (522) 133 2,345 – 16,911
Unallocated corporateJ8
expenses(13,724)
Finance costsI(8,241)
Loss on dilution of[L!
interests in associatesBf&(481)
Share of results of&L!
associates86200,483
Profit before taxationP;194,948
Taxation–
Profit for the periodP;194,948
3. REVENUE AND SEGMENT INFORMATION (continued)
Business segments (continued)
Six months ended 30th September, 2006
3. ]
8
ZggXgdH
Inter-segment sales are charged at prevailing market rate or at terms
determined and agreed by both parties.
4. OTHER INCOME

V/W29_d2P
_f
4. I]
Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
XgdH
ZggVZgg
ww
Reversal of allowance for loan receivablesara1,982 –
Net foreign exchange gain3BX2,791 –
OthersI2,767 –
7,540 –

INTERIM REPORT 2007/2008
35
5. OTHER GAINS (LOSSES), NET
Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
XgdH
ZggVZgg
ww
Net other gains (losses) arising from changes;=[I
in fair values of:Bf&Xj
– Conversion options embedded in convertiblelpCm
noteslp77,236 (11,731)
– Derivative financial instruments[DH(2,134) (199)
– Financial assets designated at fair value through82;=P;
profit or lossf&D10,963 51
– Investments held for trading5o-56,991 (2,440)
– Gold trading contractso-(65) (541)
142,991 (14,860)
5. IBf&X
6. I

Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
XgdH
ZggVZgg
ww
Loss on dilution of interests in subsidiaries[n!Bf&(160,207) –
Loss on disposal of interests in subsidiaries/n!Bf&(56,644) –
Gain (loss) on dilution of interests[L!B
in associatesBf&65,768 (481)
Gain on disposal of interests in associates/L!BB76,683 –
(74,400) (481)
7. LOSS ON DISPOSAL AND DILUTION OF INTERESTS IN SUBSIDIARIES AND
ASSOCIATES

7. /[n!L!Bf&
Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
XgdH
ZggVZgg
ww
Interest on:h;j
– Bank borrowings wholly repayable within
five years>588 540
– Bank borrowings not wholly repayable within
five years>2,998 1,621
– Convertible notes payablelpC8,734 –
– Redeemable convertible preference shareslpp5,464 5,494
– Other borrowings wholly repayable within
five yearsI>25,995 –
– Margin account payables2,146 586
– OthersI371 –
46,296 8,241
6. FINANCE COSTS

INTERIM REPORT 2007/2008
36
7. LOSS ON DISPOSAL AND DILUTION OF INTERESTS IN SUBSIDIARIES AND

ASSOCIATES (continued)
During the period, significant changes in shareholdings of subsidiaries
and associates are as follows:
(a) In April 2007, Hanny Holdings Limited (“Hanny”), a then
subsidiary of the Company, issued 43,500,000 ordinary shares
at a price of HK$3.40 each pursuant to a placing and
subscription agreement, the Company’s interest in Hanny was
decreased from 67.23% to 57.36% resulted in a loss on dilution
of approximately HK$160 million. In May 2007, the Group
disposed of 21,000,000 ordinary shares of Hanny at a price of
HK$5.00 each. The Company’s interest in Hanny was further
reduced to 50.27% resulted in a loss on disposal of
approximately HK$81 million. Subsequent to this disposal, the
Company’s interest in Hanny was further reduced to
approximately 49.54% due to the conversion of the convertible
notes of Hanny by certain noteholders, resulted in a gain on
dilution of approximately HK$265,000 and Hanny then ceased
to be a subsidiary of the Company and became an associate
of the Company on 18th May, 2007.
(b) In May 2007, the Group disposed of approximately 6.45% equity
interest in, a then subsidiary of the Company, Trasy Gold Ex
Limited (“Trasy”). The Company’s interest in Trasy was reduced
to 50.00004% resulted in a gain on disposal of approximately
HK$24 million. In June 2007, the Company’s interest in Trasy
was further diluted to approximately 49.998% as a result of
exercise of share options granted by Trasy, resulted in a gain
on dilution of approximately HK$11,000 and Trasy then ceased
to be a subsidiary and became an associate of the Company
on 11th June, 2007.
Following the dilution of interest in Trasy as former subsidiary of
the Company, the Group’s interest in Trasy was further reduced
due to (i) the dilution effect of placing and subscription for a
total of 1,215,000,000 ordinary shares of Trasy; and (ii) the
disposal effect of Trasy’s shares by the Group for considerations
of approximately HK$165,343,000 of which HK$46,040,000 and
HK$119,303,000 were received as cash and margin account
receivables, respectively. These transactions resulted in an
aggregate gain on dilution of interests in Trasy of approximately
HK$62 million and a gain on disposal of approximately HK$77
million. In addition, the Group donated 10,000,000 shares of
Trasy to The Community Chest of Hong Kong, in which the
value of such donated shares was approximately HK$688,000.
After the series of transactions mentioned above, the Group
did not have any shareholding interest in Trasy at 30th
September, 2007.
The net assets of Hanny and Trasy at the respective dates of dilution
of subsidiaries were set out in note 18.
8. TAXATION

7. /[n!L!Bf&

dn!L!p }
hj
3dI!n!d/
XD2p3.40
43,500,000pwpdBI!3
B_67.23%57.36%d[[
f&160,000,000fZggV
dI2p5.00/3
21,000,000pwpdBI!3
B50.27%d[/[f&
81,000,000f/+df
3C5[3l3lpC
d4I!3B
49.54%d[B265,000d
3uZggVd^
I!n!IL
!f
(b)ZggVdI/6.45%
YDpIBdBI!YD
B50.00004%dm8/
B24,000,000fZggV
d_YDp4dI
!YDB[49.998%d
[B11,000dYDu
ZggVdSI!
n!IL!f
[I!n!YDBd
IYDB(i)/
1,215,000,000pYDwp[Bi
(ii)I165,343,000
/YDpI46,040,000
119,303,0009$
_S[Bf
t[YDB<B
62,000,000/B77,000,000
f$.dI10,000,000pY
Dp0Bdp
=688,000f
jtdIZggVX
gd5YDpBf
3YD[n!
X1W18f
8.
Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
XgdH
ZggVZgg
ww
Current tax:j
Hong Kong Profits Tax0;{10,726 –
Deferred Tax(57) –
10,669 –

INTERIM REPORT 2007/2008
37
Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
XgdH
ZggVZgg
ww
Profit for the period has been arrived at afterP;j
charging (crediting):
Depreciation of property, plant and equipmentJ8e@6,783 2,604
Donation688 –
Release of prepaid lease payments7aka#1,107 1,107
Share of taxation of associates (included in&L!
share of results of associates)]&L!86124,993 (5,519)
Gain on disposal of property, plant and/J8e@
equipmentB(1,665) (18)
Net realised gain on investments held5o-$BX
for trading (Note)W(12,644) (4,525)
Note:Wj
Proceeds on sale of investments heldV/5o-{
for trading (included in revenue)]](267,283) (306,966)
Less: Cost of sales (included in cost of sales)jV/I]V/I254,639 302,441
Net realised gain on investments held for trading5o-$BX(12,644) (4,525)
8. TAXATION (continued)
Hong Kong Profits Tax is calculated at the rate of 17.5% of the
estimated assessable profits of Hanny derived from Hong Kong for
the current interim period.
No provision for taxation was made in prior period as the Group
had no assessable profit for that period.
9. PROFIT FOR THE PERIOD

8.
0;{W3I0{
P;217.5%Qf
_I(P;dB(
af
9. P;
10. DISTRIBUTIONS

Dividends recognised as distributions to equity holders of the
Company:
Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
XgdH
ZggVZgg
ww
Final dividend declared for the yearZggVggdS
ended 31st March, 2007|Kp
– HK2.0 cents (2006: HK1.7 cents)pwp2.0
per ordinary shareZggj1.743,480 31,237
Dividend declared on 21st December, 2007:ZggVdZZdS
|pj
Interim dividend declared for the current periodI|p
– HK1.3 cents (2006: HK1.5 cents)pwp1.3
per ordinary shareZggj1.534,563 27,954
10. |
I!p5[|pj

INTERIM REPORT 2007/2008
38
Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
XgdH
ZggVZgg
ww
Profit for the period attributable to equity holdersI!p5[&
of the Company and earnings for the purposesP;Qp?I
of basic earnings per share;;303,318 195,753
Effect of dilutive potential ordinary shares:H[wpBj
Adjustment to the share of results of associates&L!n!
and subsidiaries based on dilution of their862I[p
earnings per share;(36,404) (11,703)
Adjustment of finance costs on redeemablelpp
convertible preference sharesDI5,464 5,494
Earnings for the purposes of diluted earningsQp[;
per share;272,378 189,544
Number of shares Number of shares
ppfppf
Weighted average number of ordinary shares forQp?I;
the purposes of basic earnings per sharewp;ip2,432,864,465 2,204,994,174
Effect of dilutive potential ordinary shares:H[wpBj
Redeemable convertible preference shareslpp325,071,706 326,527,948
Weighted average number of ordinary shares forQp[;
the purposes of diluted earnings per sharewp;ip2,757,936,171 2,531,522,122
10. DISTRIBUTIONS (continued)
The amount of the interim dividend declared for the six months
ended 30th September, 2007, which will be payable in cash with an
option to elect scrip dividend of ordinary shares, has been calculated
by reference to the 2,658,718,149 issued ordinary shares outstanding
as at the date of this report.
Subsequent to 30th September, 2007,
(a) a dividend of HK2.0 cents per ordinary share was paid to the
holders of ordinary shares of the Company as a final dividend
for the year ended 31st March, 2007 of which approximately
HK$29,875,000 was settled in a form of 49,916,232 new ordinary
shares of the Company; and
(b) the Company issued 434,800,319 bonus shares to the holders
of ordinary shares of the Company on the basis of one new
ordinary share for every five ordinary shares held on 15th
October, 2007.
11. EARNINGS PER SHARE

The calculation of the basic and diluted earnings per share
attributable to the equity holders of the Company is based on the
following data:
10. |
ZggVXgdH|
pZ$owpp
|d(IS
2,658,718,149pwpQf
ZggVXgdd
(a)pwp2.0pI
!wppZggVg
gdSKpdI
29,875,00049,916,232pI!-
wpi
(b)I!I!wpp
434,800,319ppd?_ZggV
dd5pwpSp-
wpf
11. p;
I!p5[&p?I[;
W2hQj
The weighted average number of ordinary shares for the current
and prior periods has been adjusted for the effect of bonus issue of
new ordinary shares of the Company set out in note 10(b), on the
basis of one new ordinary share for every five ordinary shares held.
W10(b)dIwp
;ipi1pI!-wp
?_5pwpSp-w
pBf

INTERIM REPORT 2007/2008
39
(Unaudited) (Audited)
30.9.2007 31.3.2007

HK$’000 HK$’000
J22
ZggVZggV
XgdggdS
ww
Share of net assets of associates:&L!j
Listed in Hong Kong0j92,369,439 997,900
Listed overseas.j97,961 271,506
Unlistedj9192 324,641
2,377,592 1,594,047

Market value of listed securities:j9p9=j
Hong Kong01,808,144 1,477,663
Overseas.224,648 362,788
2,032,792 1,840,451
12. MOVEMENTS IN PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT
PROPERTIES

During the period, the Group spent approximately HK$741,000
(1.4.2006 to 30.9.2006: HK$1,719,000) on property, plant and
equipment.
As the directors of the Company considered that the carrying
amounts of the Group’s leasehold land and buildings and investment
properties do not differ significantly from those which would be
determined using fair values at 30th September, 2007, no revaluation
surplus or deficit has been recognised in the current period.
13. INTERESTS IN ASSOCIATES

12. J8e@J8
IdI\741,000
Zgg,SZggXgd
j1,719,000]J8e@f
_I!+Ia#z}
J8&=~4\ZggVX
gd;=>k6 }9d
(I qfYf
13. L!B
As detailed in note 7, the Company’s interest in Hanny, a former
subsidiary, was decreased to 49.54% due to the dilution on new
issue and disposal of shares in Hanny during the period prior to May
2007. Hanny became an associate of the Group since 18th May,
2007. Subsequently, the Group increased the interest in Hanny to
49.99% through the acquisition of shares in market. Discount on
acquisition of approximately HK$10,450,000 arising from the
acquisition of additional equity interest in Hanny have been included
in the determination of the Group’s share of results of associates.
14. DEBTORS, DEPOSITS AND PREPAYMENTS

Included in debtors, deposits and prepayments are trade debtors of
approximately HK$6,752,000 (31.3.2007: HK$13,892,000) and their
aged analysis at the balance sheet date is as follows:
W7dI!n!3
BdZggV-p
/3p[d49.54%f3
ZggVd^IL
!fIdI99jp#5
3B49.99%f#3pIB
[+10,450,000>
I&L!86<f
14. ek
ek<6,752,000
ZggVggdSj13,892,000
qfqQ
ghj
(Unaudited) (Audited)
30.9.2007 31.3.2007

HK$’000 HK$’000
J22
ZggVZggV
XgdggdS
ww
Trade debtorsq
0-30 days 0-306,630 7,018
31-60 days 31-6077 28
61-90 days 61-9041 1
Over 90 dayst@904 6,845
6,752 13,892

INTERIM REPORT 2007/2008
40
(Unaudited) (Audited)
30.9.2007 31.3.2007

HK$’000 HK$’000
J22
ZggVZggV
XgdggdS
ww
Trade creditorsq
0-30 days 0-30870 18,320
31-60 days 31-6026 47
61-90 days 61-9027 –
Over 90 dayst@903 29
926 18,396

14. DEBTORS, DEPOSITS AND PREPAYMENTS (continued)
Trade debtors arising from property investment business are payable
monthly in advance and the credit terms granted by the Group to
other trade debtors normally range from 30 days to 90 days.
15. CREDITORS AND ACCRUED EXPENSES

Included in creditors and accrued expenses are trade payables of
approximately HK$926,000 (31.3.2007: HK$18,396,000) and their aged
analysis at the balance sheet date is as follows:
14. ek
J8a#8q2kd
I1IqrS
_3090f
15.
<926,000
ZggVggdSj18,396,000
qfqQ
ghj
Number of shares Share capital
HK$’000
ppf pI
w
Ordinary shares of HK$0.10 eachp&=0.10wp
Authorised:,j
At 1st April, 2007ZggV,S3,000,000,000 300,000
Increase during the period (Note a)#Wa7,000,000,000 700,000
At 30th September, 2007ZggVXgd10,000,000,000 1,000,000
Issued and fully paid:j
At 1st April, 2007ZggV,S1,872,982,368 187,298
Conversion of redeemable convertible preference7llpp
shares (Note b)Wb1,019,230 102
Placement of shares (Note c)/pWc300,000,000 30,000
At 30th September, 2007ZggVXgd2,174,001,598 217,400
16. SHARE CAPITAL 16. pI

INTERIM REPORT 2007/2008
41
16. SHARE CAPITAL (continued)
Notes:
(a) On 19th September 2007, the authorised ordinary share capital
of the Company was increased from HK$300,000,000 to
HK$1,000,000,000 by the creation of 7,000,000,000 ordinary
shares of HK$0.10 each.
(b) On 7th August, 2007, 1,019,230 ordinary shares of the Company
of HK$0.1 each were issued upon conversion of 1,000,000
redeemable convertible preference shares of HK$0.1 each at
the conversion price of HK$1.04 per ordinary share.
(c) On 29th June, 2007, 300,000,000 new ordinary shares were issued
at HK$0.74 per ordinary share pursuant to a placing and
subscription agreement dated 16th June, 2007 entered into
between the Company, Dr. Chan Kwok Keung, Charles and a
placing agent.
17. SHARE-BASED PAYMENTS

Trasy has a share option scheme for its eligible participants. Details
of the share options outstanding during the current period are as
follows:
16. pI
Wj
(a)ZggVXdXd#p&
=0.107,000,000,000pwpdI
!,wppI_300,000,000
#1,000,000,000f
(b)ZggV^Vd1,000,000p
p&=0.1lpp2
pwp1.047l7lw
pdBI!1,019,230pp&=
0.1wpf
(c)ZggVZdXdI
!e7v{/#m
ZggVd/X
Dd300,000,000p-wp2pwp
0.74f
17. p
YDI~kd6pfI
J4phj
Number of
share options
ppf
Outstanding at the beginning of the periodJ4–
Granted during the period5,400,000
Exercised during the period4(100,000)
Outstanding at the date ceased to be a subsidiaryI!n!
of the CompanyJ4p(5,300,000)
The closing prices of Trasy’s shares immediately before 1st June,
2007 and 6th June, 2007, the dates of grant of the options, were
HK$0.231 and HK$0.163, respectively. The fair values of the options
determined at the dates of grant using the binomial model were
approximately HK$159,000 and approximately HK$25,000,
respectively. An amount of share option expense of approximately
HK$69,000 has been recognised in the current period.
The following assumptions were used to calculate the fair values of
share options:
YDpaZggVSZggV
p99
0.2310.163fp2
Z|>;=9159,000
25,000fp69,000
If
h\Qp;=j
Date of Grant1st June, 2007 6th June, 2007
ZggVSZggV
Grant date share pricepHK$0.2190 HK$0.1890
Exercise price4HK$0.2194 HK$0.2014
Expected lifek3 years 3 years
Expected volatilityk714.34% 14.34%
Dividend yieldpNil Nil
Risk-free interest rate,;4.355% 4.355%
The binomial model has been used to estimate the fair value of the
options. The variables and assumptions used in computing the fair
value of the share options are based on the directors’ best estimate.
The value of an option varies with different variables of certain
subjective assumptions.
Z|\p;=f\
Qp;=pW2+
3Qfp=9H
p$f

INTERIM REPORT 2007/2008
42
17. SHARE-BASED PAYMENTS (continued)
Share options granted thereunder are exercisable in stages during
the option period in the following manner:
(i) 1st one-third of share options granted become exercisable from
the grant date;
(ii) 2nd one-third of share options granted shall become
exercisable one year after the grant date; and
(iii) 3rd one-third of share options granted shall become exercisable
two years after the grant date.
18. DILUTION OF INTERESTS IN SUBSIDIARIES

As detailed in note 7, the Company’s interests in Hanny and Trasy
were reduced to below 50% and they ceased to be the subsidiaries
of the Company on 18th May, 2007 and 11th June, 2007, respectively.
The net assets of Hanny and Trasy at the respective dates were as
follows:
17. p
pp2h
l4j
(i)/HgSp
4i
(ii)KZHgSpS
4i
(iii)KgHgSpG
4f
18. [n!B
W7dI!3YDB
50%hdG!9ZggV
d^ZggVdSI
!n!f3YD
Xhj
Hanny Trasy Total
HK$’000 HK$’000 HK$’000
3 YD <
w w w
NET ASSETS DISPOSED OF /X
Total assets<5,406,113 59,172 5,465,285
Total liabilities<(1,865,351) (9,696) (1,875,047)
3,540,762 49,476 3,590,238

Minority interestsppB(2,095,962) (24,704) (2,120,666)
Conversion option reservelp(55,099) – (55,099)
Share option reservep– (67) (67)
1,389,701 24,705 1,414,406

Transfer to interests in associates7L!B(1,388,988) (24,716) (1,413,704)
Release of capital reserveI7(106) – (106)
Release of translation reserve37(352) – (352)
Release of investment revaluation reserve 7(617) – (617)
Release of other reserveI797 – 97
Gain on dilution of interests in subsidiaries[n!BB265 11 276
–––
Cash and cash equivalents disposed of/$$=f65,024 17,096 82,120
19. 19. CONTINGENT LIABILITIES

(Unaudited) (Audited)
30.9.2007 31.3.2007

HK$’000 HK$’000
J22
ZggVZggV
XgdggdS
ww
Guarantees given to banks and financialh[{>_SD
institutions in respect of
general facilities:j
– granted to an associateSL!54,833 56,000
– granted to a third partyKg– 23,292
Financial support given to an associateSL!d6?7,640 8,790
62,473 88,082

INTERIM REPORT 2007/2008
43
Six months ended
30.9.2007 30.9.2006

HK$’000 HK$’000
XgdH
ZggVZgg
ww
Associates of the Group:IL!j
Sales of building materials by the GroupIV/458 15
Dividend income earned by the GroupI_p]22,723 98,558
Rentals and related building management feeI_aJ8
charged by the GroupM#l1,089 219
Service fees charged by the GroupI_l516 577
Interest income earned by the GroupI_;]9,496 9,930
Interest charged to the GroupI;1,963 –
Other related companies (Note):I!Wj
Rentals and related building management feeI_aJ8
charged by the GroupM#l95 98
Interest income earned by the GroupI_;]17,565 6,309
20. RELATED PARTIES TRANSACTIONS

During the period, the Group had transactions with the following
related parties, details of which are as follows:
Note:
The Group and the above related companies
have common directors who have significant
influence in the above other related companies.
20. [{t
dI~h[{t
hj
Wj
I~j!
+djI
! }Bbf
21. Q+
ZggVdSZdI!I<
X200,000,0005vlpClp
CdQZggXdSZd
ZggVdSpdl
pC5[2p0.63lpZ
lpC7lI!wpf
21. POST BALANCE SHEET EVENTS

On 2nd November, 2007, the Company issued 5% convertible notes
with an aggregate principal amount of HK$200,000,000 which will
mature on 2nd November, 2009 (the “Convertible Notes”), entitling
the holders of the Convertible Notes to convert into ordinary shares
of the Company at conversion price of HK$0.63 per share as adjusted
by the bonus issue in November 2007.

Stock Code Vk : 372.HK
(Incorporated in Bermuda with limited liability)
( . =S~ )
China
Enterprises
www.itc.com.hk