CHINA FORESTRY HOLDINGS COMPANY LIMITED 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 FORESTRY HOLDINGS CO., LTD.中國森林控股有限公司
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 930) UNAUDITED FINANCIAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2013The Board of Directors (the "Board") of China Forestry Holdings Co., Ltd. (the "Company") announces, based on the information available, the unaudited financial information together with the relevant comparative figures of the Company and its subsidiaries (the "Group") for the year ended
31 December 2013, which have yet to be audited, have been reviewed by the Company's audit
committee (the "Audit Committee") and approved by the Board for publication.
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UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSSfor the year ended 31 December 2013 (Expressed in Renminbi)
2013 RMB'000 | 2012 RMB'000 | |
Turnover | 212,673 | 143,952 |
Cost of inventory sold | (189,871) | (159,089) |
Other operating income | 46,983 | 23,564 |
Amortisation of insurance premium | (124) | (146) |
Amortisation of lease prepayments | (10,752) | (9,679) |
Amortisation of intangible assets | (937) | - |
Consultancy fees | (8,650) | (14,884) |
Depreciation | (18,148) | (12,286) |
Foreign exchange gain/(loss) | 7,619 | (3,085) |
Other operating expenses | (46,371) | (35,401) |
Rental expenses of properties | (9,165) | (8,078) |
Staff costs | (42,094) | (45,862) |
Travelling expenses | (8,702) | (7,256) |
Changes in fair value of plantation assets less | ||
costs to sell | (1,070,600) | (858,230) |
Impairment loss on lease prepayments | - | (3,876) |
Impairment loss on trade receivables | (6,672) | (7,581) |
Impairment loss on other receivables | (951) | (935) |
Impairment loss on property, plant and equipment | (60,021) | - |
Write-down of inventories | (1,472) | (56,298) |
Impairment loss on prepayment for purchase of | ||
inventories | - | (13,000) |
Gain on a bargain purchase of subsidiaries | - | 1,665 |
Loss from operations | (1,207,255) | (1,066,505) |
Finance income | 14,954 | 14,590 |
Finance expenses | (119,317) | (125,523) |
Net finance costs | (104,363) | (110,933) |
Loss before taxation | (1,311,618) | (1,177,438) |
Income tax | (162) | (9,305) |
Loss for the year | (1,311,780) | (1,186,743) |
Attributable to: Owners of the Company | (1,291,356) | (1,180,302) |
Non-controlling interests | (20,424) | (6,441) |
(1,311,780) | (1,186,743) | |
Loss per share (RMB) | ||
Basic and diluted | (0.42) | (0.39) |
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for the year ended 31 December 2013
(Expressed in Renminbi)
2013 RMB'000 | 2012 RMB'000 | |
Loss for the year | (1,311,780) | (1,186,743) |
Other comprehensive income for the year, net of tax | ||
Item that may be reclassified subsequently to profit or loss Exchange differences on translation of financial statements of group entities outside of the PRC | 15,668 | 16,298 |
Total other comprehensive income for the year | 15,668 | 16,298 |
Total comprehensive loss for the year | (1,296,112) | (1,170,445) |
Attributable to: Owners of the Company | (1,274,572) | (1,164,004) |
Non-controlling interests | (21,540) | (6,441) |
The components of other comprehensive income do not have any significant tax effect for each of the two years ended 31 December 2013 and 2012.
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UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 31 December 2013 (Expressed in Renminbi)
RMB'000 RMB'000
Property, plant and equipment | 123,092 | 145,418 |
Lease prepayments | 315,288 | 316,564 |
Plantation assets | 997,188 | 2,033,900 |
Intangible assets Prepayment for forest acquisition | 5,063 - | - 49,787 |
Deposit for construction of a property | 6,212 | 6,212 |
Deferred tax assets | 3,510 | 3,642 |
Total non-current assets | 1,450,353 | 2,555,523 |
Current assets Lease prepayments | 11,045 | 10,724 |
Inventories | 52,750 | 39,405 |
Trade and other receivables | 136,685 | 88,363 |
Loan receivable | 30,000 | 50,000 |
Due from customers on construction contracts | 41,350 | 28,804 |
Financial assets at fair value through profit or loss | 63,920 | 66,560 |
Pledged bank deposits | 7,300 | 10,700 |
Cash and cash equivalents | 58,484 | 395,876 |
Total current assets | 401,534 | 690,432 |
Current liabilities Trade and other payables | (570,881) | (617,627) |
Interest-bearing borrowings | (50,000) | (70,000) |
Current income tax payable | (71,385) | (71,385) |
Financial guarantee liabilities | - | (3,000) |
Total current liabilities | (692,266) | (762,012) |
Net current liabilities | (290,732) | (71,580) |
Total assets less current liabilities | 1,159,621 | 2,483,943 |
Non-current liabilities Interest-bearing borrowings | (1,080,155) | (1,106,989) |
Total non-current liabilities | (1,080,155) | (1,106,989) |
NET ASSETS | 79,466 | 1,376,954 |
CAPITAL AND RESERvES Share capital | 20,797 | 20,797 |
Reserves | 37,937 | 1,313,885 |
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | 58,734 | 1,334,682 |
Non-controlling interests | 20,732 | 42,272 |
TOTAL EQUITY | 79,466 | 1,376,954 |
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NOTES TO THE UNAUDITED FINANCIAL STATEMENTSfor the year ended 31 December 2013 (Expressed in Renminbi)
1. GENERAL INFORMATIONChina Forestry Holdings Company Limited (the "Company") was incorporated and registered as an exempted company with limited liability under the Companies Law of the Cayman Islands and acts as an investment holding company. Its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 3 December 2009 and have been suspended from trading since 26 January 2011. The addresses of the registered office and principal place of business of the Company are Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands and Room 2507, 25th Floor, Bank of America Tower, 12 Harcourt road, Hong Kong respectively.
2. SIGNIFICANT ACCOUNTING POLICIES a) Statement of complianceThese consolidated financial statements have been prepared in accordance with all applicable International Financial Reporting Standards ("IFRSs"), which collective term includes all applicable individual IFRSs, International Accounting Standards ("IASs") and Interpretations issued by the International Accounting Standards Board ("IASB").
b) Basis of preparation of the financial statementsThe consolidated financial statements for the year ended 31 December 2013 comprise the Company and its subsidiaries (together referred to as the "Group"). The consolidated financial statements are presented in Renminbi ("RMB"), rounded to the nearest thousand except for per share data. The functional currency of the entities within the Group is RMB except for the Company and other group entities established outside the PRC for which the functional currency is Hong Kong dollars ("HK$"). As the Group mainly operates in the PRC, RMB is used as the presentation currency of the Group.
3. TURNOvERTurnover represents the sales value of goods supplied to customers less value added tax, returns and trade discounts and service income from the provision of wood processing and construction and catering services.
2013 RMB'000 | 2012 RMB'000 | |
Revenue from trading of timber logs and lumbers | 146,369 | 48,493 |
Revenue from sales of logs from harvesting activities Revenue from provision of wood processing and construction services | 14,902 50,665 | 46,610 48,849 |
Revenue from provision of catering services | 737 | - |
212,673 | 143,952 |
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4. OTHER OPERATING INCOME AND EXPENSESa) | Other operating income | 2013 | 2012 |
RMB'000 | RMB'000 | ||
Reversal of impairment loss on trade receivables (note i) Reversal of impairment loss on prepayment for purchase of inventories (note i) | 2,250 6,825 | 15,050 3,365 | |
Reversal of impairment loss on other receivables (note i) | 600 | 3,000 | |
De-recognition of long outstanding payables | 4,059 | - | |
Recovery of embezzled funds (note ii) Government grants | 30,000 - | - 264 | |
Others | 3,249 | 1,885 | |
46,983 | 23,564 |
Notes:
i) During the year ended 31 December 2013, the Group recovered previously impaired debts from debtors and suppliers. Hence impairment losses of RMB2,250,000 (2012: RMB15,050,000), RMB600,000 (2012: RMB3,000,000) and RMB6,825,000 (2012: RMB3,365,000) on trade receivables, other receivables and prepayment for purchase of inventories were reversed respectively.
ii) In January 2011, the Group discovered that the former chief executive officer, Mr. Li Han Chun embezzled funds of approximately RMB30 million from the Group. During the year ended 31 December 2013, the Group received a refund of RMB30 million from the public security bureau as a recovery of the embezzled funds.
The other operating expenses include the following:
2013 2012RMB'000 RMB'000
Auditors' remuneration
- audit services 3,063 3,213
- non-audit services 1,359 1,056
Fair value loss on financial assets at fair value
through profit or loss 13,254 8,184
Loss on disposal of property, plant and equipment 8 403
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5. NET FINANCE COSTS 2013 2012RMB'000 RMB'000
Finance income
Interest income earned from deposits with banks 1,295 3,071
Total interest income on financial assets not
at fair value through profit or loss 1,295 3,071
Interest income from financial assets at fair value
through profit or loss 13,659 11,519
Interest on senior notes wholly repayable
within five years (116,092) (122,017) Interest on short-term bank loans wholly
repayable within five years (2,768) (2,809) Other interest (457) (525) Total interest expense on financial liabilities not
at fair value through profit or loss (119,317) (125,351)
Others - (172)
Net finance costs (104,363) (110,933)
RMB'000 RMB'000
Salaries, wages and other benefits 40,850 41,401
Contributions to defined contribution retirement schemes 6,460 4,190
Equity-settled share-based payment expenses (1,376) 2,288
Total (including directors' emoluments) 45,934 47,879
Less: staff costs absorbed into work in progress (3,840) (2,017)
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7. SUSPENSION OF TRADING
At the request of the Company, trading in the shares of the Company was suspended since 26 January
2011 and shall remain suspended until further notice.
By order of the Board
China Forestry Holdings Co., Ltd. Li Kwok CheongChairman
Hong Kong, 9 March 2015
As at the date of this announcement, the executive Directors of the Company are Mr. Li Kwok Cheong and Mr. Lin Pu, the non-executive Directors of the Company are Mr. Li Zhi Tong and Mr. Meng Fan Zhi, and the independent non-executive Directors of the Company are Mr. Liu Can, Dr. Liu Yong Ping and Ms. Hsu Wai Man, Helen.
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