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China Electronics Optics Valley Union Holding Company Limited
中 電 光 谷 聯 合 控 股 有 限 公 司
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 798)
SUMMARY OF RESTATED FINANCIAL STATEMENTS OF
WUHAN OPTICS VALLEY UNION, AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF THE COMPANY, FOR THE THREE YEARS ENDED 31 DECEMBER 2018 (AUDITED) PUBLISHED IN THE PRC IN RELATION TO CERTAIN DOMESTIC DEBT FINANCING
This announcement is made by China Electronics Optics Valley Union Holding Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, the Laws of Hong Kong).
Wuhan Optics Valley Union Group Company Limited* (武漢光谷聯合集團有限公司) ("Wuhan Optics Valley Union"), an indirect wholly-owned subsidiary of the Company, completed the issuance of the Phase I debt financing instruments in an aggregate principal amount of RMB800 million to designated institutional investors in the inter-bank market with a term of three years and an interest rate of 6.38% per annual on 17 August 2017 (collectively, the "Medium-termNotes"). As of the date of this announcement, Wuhan Optics Valley Union has fully paid the two-year interest in a timely manner. Details of the Medium-term Notes have been published on the website of the National Association of Financial Market Institutional Investors (http://www.nafmii.org.cn).
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In addition, Wuhan Optics Valley Union completed the issuance of the Phase I debt financing instruments in an aggregate principal amount of RMB500 million to designated institutional investors in the inter-bank market with a term of 270 days and an interest rate of 6.00% per annual on 31 May 2019 (collectively, the "Super Short-TermFinancing Bonds"). Details of the Super Short-Term Financing Bonds have been published on the website of the National Association of Financial Market Institutional Investors (http://www.nafmii.org.cn).
SUMMARY OF RESTATED AND AUDITED FINANCIAL STATEMENTS OF WUHAN OPTICS VALLEY UNION FOR THE THREE YEARS ENDED 31 DECEMBER 2018 (THE "WUHAN OPTICS VALLEY UNION FINANCIALS")
When the inventory is converted into the investment real estate measured by the fair value, the differences between fair value and carrying cost price had been credited in the current profit and loss statement on the conversion date in accordance with the provisions of International Accounting Standard 40 - Investment Property. At the project planning stage, Wuhan Optics Valley Union had designated certain parts of the properties to be used as investment upon completion of the relevant construction works, and such purpose of property holding was not intended to be changed within a short period of time. The differences between fair value of the real estate and its carrying cost price had therefore been credited in the current profit and loss in the accounting statements of Wuhan Optics Valley Union in China. However, as Wuhan Optics Valley Union is a domestic entity in the PRC, its financial statements should have been prepared in accordance with the provisions of Accounting Standards for Enterprises No. 3 - Investment Real Estates of the PRC, pursuant to which, when the inventory is converted into the investment real estate measured by the fair value model, if the fair value amount of the real estate is greater than its original carry amount on the conversion date, the difference should be counted towards the "other comprehensive income" account instead.
In view of the above, pursuant to the relevant rules and regulations in the PRC, the Finance Department of Wuhan Optics Valley Union has made correction adjustments to the accounting errors in the audited financial statements of Wuhan Optics Valley Union for the three years ended 31 December 2018. Such adjustments do not affect the net asset value of Wuhan Optics Valley Union, nor do they affect the financial condition, operating performance and solvency of Wuhan Optics Valley Union. Such financial statements are available on the websites of China Bond (http://www.chinabond.com.cn) and the Shanghai Stock Exchange (http://www.sse.com.cn).
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Set out below are the key financial figures as extracted from the Wuhan Optics Valley Union Financials:
As at 31 | As at 31 | As at 31 | |
December 2018 | December 2017 | December 2016 | |
RMB million | RMB million | RMB million | |
(restated) | (restated) | (restated) | |
Total assets | 12,811 | 10,762 | 10,256 |
Total liabilities | 7,349 | 5,537 | 5,549 |
Owners' equity (or shareholders' equity) | 5,462 | 5,225 | 4,707 |
For the year | For the year | For the year | |
ended 31 | ended 31 | ended 31 | |
December 2018 | December 2017 | December 2016 | |
RMB million | RMB million | RMB million | |
(restated) | (restated) | (restated) | |
Revenue | 3,296 | 2,549 | 2,532 |
Net profit | 524 | 412 | 397 |
The above audited financial statements of Wuhan Optics Valley Union for the three years ended 31 December 2018 have been prepared in accordance with the PRC generally accepted accounting principles. These financial statements are limited solely to Wuhan Optics Valley Union, do not constitute any effect on the audited combined financial statements of the Group for the three years ended 31 December 2018 as previously published, and do not represent or provide a full picture of the operation and financial position of the Group.
Shareholders and potential investors of the Company are reminded not to rely solely on the information contained herein and should exercise caution when dealing in the securities of the Company.
By Order of the Board
China Electronics Optics Valley Union Holding Company Limited
Huang Liping
Chairman
Wuhan, Hubei, the People's Republic of China
18 February 2020
As at the date of this announcement, the directors of the Company are Mr. Huang Liping and Mr. Hu Bin as executive Directors; Ms. Wang Qiuju, Mr. Xiang Qunxiong, Mr. Zhang Jie and Ms. Sun Ying as non-executive Directors; Mr. Qi Min, Mr. Leung Man Kit and Ms. Zhang Shuqin as independent non-executive Directors.
* for identification purposes only
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China Electronics Optics Valley Union Holding Co. Ltd. published this content on 18 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 February 2020 08:33:01 UTC