China Singyes Solar Technologies : Announcements and Notices - Announcement of Interim Results for the Six Months Ended 30 June 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

China Singyes Solar Technologies Holdings Limited

中國 興 業太 陽 能 技術 控 股 有 限公 司

(incorporated in Bermuda with limited liability)

(Stock Code: 750)

ANNOUNCEMENT OF INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2019

The board of directors (the "Directors", collectively referred to as the "Board") of China Singyes Solar Technologies Holdings Limited (the "Company") is pleased to announce the interim results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2019 (the "Period").

FINANCIAL HIGHLIGHTS

		For the six months ended 30 June
		2019	2018
		RMB'000	RMB'000
		(unaudited)	(unaudited)
Revenue	1,148,380	3,019,787
Profit/(loss) before tax	(460,927)	321,493
Income tax expense	4,069	90,247
Profits/(loss) attributable to owners of the Company	(468,024)	228,484
Earnings/(loss) per share attributable to ordinary equity holders
	- Basic	RMB(0.581)	RMB0.274
	- Diluted	RMB(0.581)	RMB0.274

- 1 -

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME
		For the six months ended 30 June
		2019		2018
	Notes		RMB'000	RMB'000
			(unaudited)	(unaudited)
Revenue	3	1,148,380		3,019,787
Cost of sales			(1,209,524)	(2,282,826)
Gross profit/(loss)			(61,144)	736,961
Tariff adjustment	3	80,232		86,568
Other income and gains		25,044		38,810
Selling and distribution expenses		(61,499)	(62,716)
Administrative expenses		(141,260)	(179,010)
Impairment losses on financial and		(99,647)
contract assets, net		(41,199)
Other expenses		(6,723)	(39,208)
Finance costs		(197,110)	(212,896)
Share of profits/(losses) of associates			1,180		(5,817)
Profit/(loss) before tax	4		(460,927)	321,493
Income tax expense	5		(4,069)	(90,247)
Profit/(loss) for the period			(464,996)	231,246

Other comprehensive loss for the period:

Other comprehensive loss that will not be

• reclassified to profit or loss in subsequent periods:
• Changes in fair value of equity instruments
• at fair value through other

	comprehensive income		-	(6,559)
Exchange differences on translation of		(12,051)
	financial statements		(24,462)
Other comprehensive loss for the period		(12,051)	(31,021)
Total comprehensive income/(loss) for the period		(477,047)	200,225
Profit/(loss) attributable to:
	(468,024)
Owners of the Company		228,484
	Non-controlling interests		3,028		2,762
			(464,996)	231,246
Total comprehensive income/(loss) attributable to:
	(480,133)
Owners of the Company		197,301
	Non-controlling interests		3,086		2,924
			(477,047)	200,225
Earnings/(loss) per share attributable to ordinary
equity holders of the Company	6	RMB(0.581)
	- Basic	RMB0.274
	- Diluted	6	RMB(0.581)	RMB0.274

- 2 -

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		30 June	31 December
		2019		2018
	Notes	RMB'000	RMB'000
		(unaudited)
NON-CURRENT ASSETS		4,400,161
Property, plant and equipment		4,475,179
Investment properties		73,549	74,344
Right-of-use assets		217,699	-
Prepaid land lease payments		-	211,413
Intangible assets		1,803	2,058
Payments in advance		13,952	13,513
Investments in associates		5,609	4,429
Investment in a joint venture		-	6,370
Deferred tax assets		1,610	1,557
Financial assets at fair value		24,885
through profit or loss		24,265
Equity investments designated at fair value		5,678
through other comprehensive income		5,657
Goodwill		6,448	6,448
Total non-current assets		4,751,394		4,825,233
CURRENT ASSETS		74,330
Inventories			69,592
Contract assets		2,003,513		2,119,517
Trade and bills receivables	8	3,022,975		3,389,476
Prepayments, deposits and other receivables	8	965,450		596,568
Pledged deposits		73,377		180,590
Cash and cash equivalents		140,249		216,151
Total current assets		6,279,894		6,571,894
CURRENT LIABILITIES	9	899,953
Trade and bills payables		901,520
Other payables and accruals		486,111	449,257
Contract liabilities		76,317	105,067
Bank advances for discounted bills		40,115	-
Interest-bearing bank and other loans		3,014,750	2,956,804
Tax payable		16,049	20,317
Convertible bonds	10	96,000	96,000
Senior notes	11	2,854,788	2,850,012
Lease liabilities		2,634	-
Provision		81,432	81,289
Total current liabilities		7,568,149		7,460,266
NET CURRENT LIABILITIES		(1,288,255)	(888,372)
TOTAL ASSETS LESS CURRENT
LIABILITIES		3,463,139		3,936,861

- 3 -

		30 June	31 December
		2019		2018
	Notes	RMB'000	RMB'000
		(unaudited)
NON-CURRENT LIABILITIES
Deferred tax liabilities		87,592	87,680
Lease liabilities		7,259	-
Deferred income		152,316	157,449
Total non-current liabilities		247,167		245,129
Net assets		3,215,972		3,691,732
EQUITY
Equity attributable to owners of the Company
Issued capital	12	55,785		55,785
Reserves		3,056,997		3,535,106
		3,112,782	3,590,891
Non-controlling interests		103,190	100,841
Total equity		3,215,972		3,691,732

- 4 -

NOTES TO INTERIM CONDENSED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE 2019

1. CORPORATE INFORMATION

China Singyes Solar Technologies Holdings Limited (the "Company") was incorporated as an exempted company with limited liability in Bermuda on 24 October 2003. The registered office of the Company is located at 4th Floor, North Cedar House, 41 Cedar Avenue, Hamilton, HM12, Bermuda. The principal place of business of the Company is located at Unit 3108, 31st Floor, China

Merchants Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong.

During the six months ended 30 June 2019 (the "Period"), the Company and its subsidiaries

(collectively referred to as the "Group") were principally engaged in the design, manufacture, supply and installation of conventional curtain walls and building integrated solar photovoltaic system, as well as the manufacture and sale of solar power products. There were no significant changes in the nature of the Group's principal activities during the Period.

In the opinion of the directors, the parent and the ultimate holding company of the Company is Strong Eagle Holdings Limited, which was incorporated in the British Virgin Islands.

2.1 BASIS OF PREPARATION

The unaudited interim condensed financial information for the Period has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting ("IAS 34").

The unaudited interim condensed financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2018.

Going concern basis

As at 30 June 2019, the Group had net current liabilities of RMB1,288,255,000 (31 December 2018: net current liabilities of RMB888,372,000) and incurred a loss of RMB464,996,000 (six months ended 30 June 2018: net profit of RMB231,246,000) for the Period.

As disclosed in the Company's announcements dated 18 October 2018 and 10 January 2019, the Company has defaulted on its US$160 million 6.75% senior notes due 2018 (the "2018 USD Senior

Notes"), which resulted in the occurrence of events of default of RMB930 million 5% convertible bonds due 8 August 2019 (the "2019 Convertible Bonds") and US$260 million 7.95% senior notes due on 15 February 2019 (the "2019 Senior Notes") (collectively the "Debt Securities"). The aforesaid defaults (the "Default") also resulted in cross-defaults of certain of the Group's bank and other loans which became payable on demand in accordance with their terms.

- 5 -