Comtec Solar Systems Group Limited — Earnings Release 2016

Mar 29, 2016

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.

卡姆丹克太陽能系統集團有限公司 Comtec Solar Systems Group Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 712)

PROFIT WARNING

This announcement is made by Comtec Solar Systems Group Limited (the ‘‘Company’’ and, together with its subsidiaries, the ‘‘Group’’) pursuant to the Inside Information Provisions (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ‘‘Listing Rules’’)) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and Rule 13.09 of the Listing Rules.

The board (the ‘‘Board’’) of directors (the ‘‘Directors’’) of the Company wishes to inform the shareholders and potential investors of the Company that, the Company expects to record a net loss of over RMB400 million for the year ended 31 December 2015, as compared to a net loss of approximately RMB90.5 million for the corresponding year ended 31 December 2014.

According to the analysis of the Company’s management based on the information currently available, the anticipated net loss was primarily attributable to (i) impairment losses on advance to suppliers of approximately RMB152.8 million; (ii) a gross loss of approximately RMB94.4 million, which was primarily attributable to (a) the decrease in revenue due to the decrease in the average selling prices of wafers and polysilicon during 2015; and (b) the write-down of the Group’s inventory of approximately RMB 112.7 million due to the decrease in the market prices of solar wafers and polysilicon; (iii) recognition of share-based payment expenses of approximately RMB57.1 million; (iv) losses from disposal of outdated production equipment of approximately RMB35.6 million; and (v) net exchange loss of approximately RMB21.8 million.

As disclosed above, the anticipated net loss is mainly attributable to certain non-cash items charged for the year ended 31 December 2015. The Company would also like to inform the shareholders and potential investors that despite the anticipated net loss, from the perspective of cashflow from operating activities, the Company has improved from a net cash outflow of approximately RMB133.9 million for the year ended 31 December 2014 to a net cash inflow from operating activities of approximately RMB82.4 million for the year ended 31 December 2015.

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Please note that the information contained in this announcement is only based on the preliminary assessment by the Board on the unaudited management accounts of the Group and currently available information, which have not been audited by the Company’s auditors. Shareholders and potential investors of the Company are advised to read carefully the announcement of the Company in relation to the results of the Group for the financial year ended 31 December 2015, which is expected to be released on 31 March 2016.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the board of Comtec Solar Systems Group Limited John Zhang Chairman

Shanghai, the People’s Republic of China, 29 March 2016

As at the date of this announcement, the executive Directors are Mr. John Zhang, Mr. Chau Kwok Keung and Mr. Shi Cheng Qi, the non-executive Director is Mr. Donald Huang, and the independent non-executive Directors are Mr. Leung Ming Shu, Mr. Kang Sun and Mr. Daniel DeWitt Martin.

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