EFTA01367014.pdf

Amendment #4 Page 585 of 868 ink Co tern Halton Xilirguole and Honitm Baotou incorporated in de PRC are subsea to PRC Erterp -me Income Tax MIT') on taxable rcorre at the statutory ncorne tax rate of 25% n 2013 and 2014 The components of loss (noome) before imorne tax expense areas follows Year ended December 314 2013 2014 Use MIS Hong Kong O08 2,840 PRC 169 (1,364) Taal loss before room tax expense 4.777 1.276 The PRC mane tax tenets recognized in the combined statements of ccmprerenswe loss consists of deterred income tax Calderone amount of USS46 for the years ended December 31, 2013 and 2014 Income tax benefit for other preactions is re The actual ncorne tax benefit reported in the combined steamerss of comprehensive loss for the years ended December 31, 2013 and 2014 differs from the snort computed by applying the PRC stottory wane tax rate to income (loss) before ncome taxes dLe to the following Year ended December 314 2013 2014 use Mg PRC statutory income tax rate 25 0% 25.0% Increase (decrease) in effective iricome tax rate resulting from Nri-PRC eines not sulaect to Irmo* tax (24.1%) (51/%) Nas-dedtchble general and adminetratms expenses 10.6%) (0.7%) Charge in vakation alba/ince 46% 315% Cthers %) L5)Ili Patel income tax benefit 1.0% 3.6% The principal components of the Cantoned &nye deferred income tax assets End 'labiate, are as follows December 31 2013 2014 ties ties Gross deferred income tax assets. Accrued expenses and other current habitues 249 235 Cther non-current liabilities 6. 3.02 316 1 6 101 3.660 Tax loss carryforwards Taal gross deferred income tax assets 10,496 9,996 Valuation aserreance (10,257) (9,767) Deferred income tax assets. net 229 229 Cross deferred income tax liabilities. Ropeny plant and equipment (611) (7M) Total dross deferred income tax liateities (ELe s Net deferred income tax is bilres-rorcurrent (included in other non-current liabites) (582) (536) F-265 http://cfdocs.btogorcom:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058542 CONFIDENTIAL SDNY_GM_00204726 EFTA01367014