INVENTORIES

Inventories consist of the following:

	September 30,
	2015		2016
		RMB		RMB
Work in progress and supplies		420,655		385,790
Finished goods		65,080		39,426
Provision		(46,173)		(57,130)

		439,562		368,086

Inventory with net values of RMB27,323 and RMB36,436 have been pledged as collateral for bank loans as of September 30, 2015 and 2016.

As of September 30, 2015 and 2016, goods already delivered to customers but still recorded in finished goods, amounted to RMB6,198 and RMB3,681 respectively. As the Company does not recognize revenues until the selling prices of respective goods have been finalized with the customers, goods delivered to customers as mentioned above will only be recognized as cost of revenues when related revenues is recognized.

Provision for inventories is as below:

	Years ended September 30,
	2014		2015		2016
	RMB		RMB		RMB

Balance at beginning of year		52,301		53,587		46,173
Additions		21,984		10,965		20,502
Write-off		(20,698)		(18,379)		(9,545)

Balance at end of year		53,587		46,173		57,130