Statutory reserve, page-3

check the 2015 annual report and the 2017 half yearly report.. under statutory reserve.

By law, XPD (Jinjiang Chaoda) should have deposited at least 5% of 2016 profit into the statutory reserve, but they didn't or haven't yet done it.. They are currently not in compliance with China's law.. if we dob them in. The Chinese authority will review their books.

They can lie and cheat to the ASX, but try lying to the Chinese government and the managing director get jail time.