Trony Solar : Announcements and Notices - Interim Results for the Six Months Ended 31 December 2016

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Trony Solar Holdings Company Limited

創益太陽能控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(stock code: 2468) INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

The board of Directors (the "Board") of Trony Solar Holdings Company Limited (the "Company") announces the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 31 December 2016 (the "Period") together with the comparative figures for the same period in 2015. These unaudited results have been reviewed by the Company's Audit Committee.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

Notes	2016 RMB'000	2015 RMB'000
(Unaudited)	(Unaudited)
Revenue	4	31,863	22,744
Cost of sales and services provided	(32,364)	(26,692)
Gross loss	(501)	(3,948)
Other income	1,584	5,529
Selling and distribution expenses	(2,083)	(4,049)
Administrative expenses	(43,072)	(38,127)
Loss before tax	(44,072)	(40,595)
Income tax	5	(71)	(40)
Loss for the period	6	(44,143)	(40,635)
Other comprehensive income: Items that may be reclassified to profit or loss:
Exchange differences on translating foreign operations	4,017	2,575
Total other comprehensive income for the period	4,017	2,575
Total comprehensive loss for the period attributable to
the equity holders of the Company	(40,126)	(38,060)
Loss per share	7
Basic (RMB)	(0.03)	(0.03)
Diluted (RMB)	(0.03)	(0.03)

Six months ended 31 December CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 31 DECEMBER 2016

At 31 December	At 30 June
Notes	2016 RMB'000	2016 RMB'000
(Unaudited)	(Audited)
Non-current assets
Property, plant and equipment	9	211,522	222,026
Prepaid land lease payments	9,526	9,874
221,048	231,900
Current assets
Inventories	4,516	8,188
Trade receivables and bills receivables	10	36,594	13,862
Other receivables and prepayments	6,939	6,848
Prepaid land lease payments	260	260
Bank and cash balances	103,572	132,669
151,881	161,827
Current liabilities
Trade and other payables	11	312,627	293,299
Net current liabilities	(160,746)	(131,472)
NET ASSETS	60,302	100,428
Capital and reserves
Share capital	1,000	1,000
Reserves	59,302	99,428
TOTAL EQUITY	60,302	100,428

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

1. GENERAL INFORMATION

   Trony Solar Holdings Company Limited (the "Company") was incorporated in the Cayman Islands on 23 June 2006 as an exempted company with limited liability under the Companies Law of the Cayman Islands. The address of its registered office is the office of Estera Trust (Cayman) Limited of P.O. Box 1350, Clifton House, 75 Fort Street, Grand Cayman KY1-1108, Cayman Islands. The address of the Company's principal place of business in Hong Kong is Room 1502, 15th Floor, The Chinese Bank Building, 61-65 Des Voeux Road Central, Hong Kong. The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and have been suspended for trading since 21 June 2012.

   The Company is an investment holding company. The principal activities of the Company and its subsidiaries (collectively the "Group") are development, manufacture and sale of solar products and construction of photovoltaic cells.

2. BASIS OF PREPARATION AND ACCOUNTING POLICIES

The unaudited condensed consolidated interim financial statements ("Interim Financial Statements") have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") issued by the International Accounting Standards Board and the applicable disclosure requirements of Appendix 16 of the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules").

The Interim Financial Statements do not include all the information and disclosures required in the full set of financial statements prepared in accordance with the International Financial Reporting Standards ("IFRSs"), and should be read in conjunction with the Company's annual consolidated financial statements for the year ended 30 June 2016.

The preparation of an Interim Financial Statements in conformity with IAS 34 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a year-to-date basis. Actual results may differ from these estimates.

The accounting policies adopted in the preparation of the Interim Financial Statements are consistent with those followed in the preparation of the Company's annual consolidated financial statements for the year ended 30 June 2016.

1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (Continued) Suspension of trading in shares of the Company

   Reference is made to the Company's announcement dated 11 October 2012. The Company's predecessor auditor, Deloitte Touche Tohmatsu, who has subsequently resigned as the auditor of the Company with effect from 7 February 2015, had received various anonymous emails in March 2012 and an anonymous letter on 20 April 2012 which contained certain allegations against the Company regarding several suspected financial discrepancies (the "Potential Financial Discrepancies") in respect of the financial records of the Group (collectively the "Allegations").

   In response to the Allegations, an Independent Review Committee (the "IRC") comprising the three independent non-executive directors of the Company was established on 21 May 2012 by the board of the directors of the Company (the "Board") to conduct an inquiry into the Allegations concerned and the Company appointed an independent external law firm in the Mainland China, namely Guangdong SZGoldenBull Law Firm as its legal advisor in the People's Republic of China (the "PRC") to assist the Company in conducting the inquiry of the Allegations. At the request of the Company, trading in the shares of the Company on the Stock Exchange has been suspended since 21 June 2012.

   On 20 July 2012, the Company also appointed King & Wood Mallesons ("KWM") as the Company's legal adviser as to Hong Long Law in respect to the matters relating to the Allegations. PricewaterhouseCoopers Consulting Hong Kong Limited ("PwC") was subsequently appointed on 19 September 2012 as an independent professional adviser to assist the IRC to carry out a forensic review (the "Forensic Review") of the Allegations and report the respective findings for KWM to advise the IRC particularly on the Potential Financial Discrepancies from a legal perspective.

   For the period from March to October 2012, there were several changes in the directors of the Company and senior management of the Group including (i) resignation of finance director of Shenzhen Trony Science and Technology Development Co., Ltd, a wholly-owned subsidiary and a major operating unit of the Company with effect from 1 March 2012; (ii) retirement of the vice president of production of the Group with effect from 6 March 2012; (iii) resignation of an executive director (also as an executive vice president) of the Company, with effect from 21 August 2012; (iv) resignation of the chief financial officer of the Group with effect from 22 August 2012; (v) the appointment of a new chief financial officer on 21 August 2012; (vi) resignation of a non- executive director of the Company on 4 September 2012; and (vii) the appointment of a new executive director (the "New Executive Director") on 3 October 2012.

   On 3 October 2012, the Company received a letter from the Stock Exchange detailing the resumption conditions imposed on the Company as follows:

2. Engage a professional firm to conduct a forensic review and investigation over the Potential Financial Discrepancies, the allegations enclosed in the anonymous letters and the issues raised in the legal advisor's report from Guangdong SZGoldenBull Law Firm;

3. Inform the market of all information that is necessary to appraise the Company's position, including their implications to the Company's assets, financial and operational position;

4. Publish all outstanding financial results and reports, and address any concerns raised by the Company's auditors through qualifications in their audit report or otherwise;