Hebei Yichen Industrial : UPDATE ON THE INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2020

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Hebei Yichen Industrial Group Corporation Limited*

河北翼辰實業集團股份有限公司

(A joint stock limited liability company incorporated in the People's Republic of China)

(Stock Code: 1596)

UPDATE ON THE INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2020

Reference is made to the announcement of Hebei Yichen Industrial Group Corporation Limited (the "Company"; together with its subsidiaries, the "Group") dated 13 September 2020 (the "Announcement") in relation to the possible adjustments to the consolidated net profit and total comprehensive income of the Group for the six months ended 30 June 2020 (the "Reporting Period") and the announcement of the Company dated 28 August 2020 (the "Interim Results Announcement") in relation to the interim results of the Group for the Reporting Period. Unless otherwise specified, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

As disclosed in the Announcement, the interim condensed consolidated financial information as contained in the Interim Results Announcement was published after review and approval by the audit committee of the Board and the Board. The Board had engaged the Auditor to conduct an independent review of the interim consolidated financial information of the Group for the Reporting Period, which had yet to be completed by the time of publication of the Interim Results Announcement. Subsequent to the publication of the Interim Results Announcement, the Company was notified in writing by the Auditor on 12 September 2020 that it had come to the Auditor's attention that repayments had been received by the Group after the date of the Interim Results Announcement in partial settlement of certain receivables in respect of which full provisions for impairment had been made in the interim condensed consolidated financial information as presented in the Interim Results Announcement; in the light of the above, the Group was advised to reassess the amount of the provisions for impairment of receivables for the Reporting Period (the "Provisions").

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On 21 September 2020, the Group was advised that the Auditor had completed its review of the interim consolidated financial information of the Group for the Reporting Period in accordance with China Certified Public Accountant Review Standard No.2101 - Review of Financial Statements. Based on the Auditor's calculation of the amount of Provisions, the Company sets out below the updated figures of certain items in the consolidated balance sheet, the consolidated income statement of the Group for the Reporting Period as presented in the Interim Results Announcement (the "Updated Figures"), in addition to the original figures of such items as presented in the Interim Results Announcement (the "Original Figures") and the differences between such figures:

Extract of certain financial information on pages 2-5 of the Interim Results Announcement:

	Original	Updated
Item	Figures	Figures	Difference
	RMB'000	RMB'000	RMB'000
Accounts receivable	920,042	950,238	30,196
Prepayments	34,661	34,201	(460)
Other receivables	16,569	17,020	451
Contract assets	43,077	50,940	7,863
Deferred income tax assets	33,484	27,908	(5,576)
Other non-current assets	127,314	126,441	(873)
Undistributed profits	608,549	640,149	31,600
Loss on credit impairment	(37,718)	(541)	37,177
Total profit	111,801	148,978	37,177
Income tax expenses	15,183	20,760	5,577
Net profit	96,618	128,218	31,600
Total other comprehensive income	96,618	128,218	31,600
Earnings per share	0.11	0.14	0.03

Save for the above adjustments, there is no inconsistency between the interim consolidated financial information of the Group for the Reporting Period after the independent reviewed performed by the Auditor ("Reviewed Interim Results") and that as disclosed in the Interim Results Announcement. Details of the Reviewed Interim Results with the above adjustments incorporated will be disclosed in the Company's interim report for the Reporting Period, which is expected to be published in September 2020.

By order of the Board

Hebei Yichen Industrial Group Corporation Limited*

ZHANG Haijun

Chairman

Shijiazhuang, The PRC, 21 September 2020

As at the date of this announcement, the executive Directors are Mr. Zhang Haijun, Mr. Wu Jinyu, Mr. Zhang Chao, Mr. Zhang Lihuan and Ms. Fan Xiulan; the non-executive Director is Ms. Gu Xiaohui; and the independent non-executive Directors are Mr. Jip Ki Chi, Mr. Wang Qi and Mr. Zhang Liguo.

• For identification purpose only

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