Comtec Solar Systems Group Limited — Interim / Quarterly Report 2015

Nov 23, 2015

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)

ANNOUNCEMENT UNAUDITED FINANCIAL DATA FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2015

HIGHLIGHTS

This announcement is made in accordance with the Inside Information Provisions (as defined in 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 unaudited consolidated turnover was approximately RMB314,740,000 for the Period.

• The unaudited consolidated gross profit was approximately RMB8,815,000 for the Period and the gross profit margin was approximately 2.8% for the Period.

• The unaudited net loss was approximately RMB12,268,000 for the Period.

Shareholders of the Company and potential investors should exercise caution when dealing in the shares of the Company.

This announcement is made in accordance with 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. To provide the market with updated information, the board (‘‘Board’’) of directors (‘‘Directors’’) of Comtec Solar Systems Group Limited (the ‘‘Company‘‘, together with its subsidiaries, the ‘‘Group’’) hereby announces the unaudited financial data of the Group for the three months ended 30 September 2015 (the ‘‘Period’’).

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The following items are extracted from the unaudited management accounts of the Group for the Period, together with the comparative figures for the corresponding period in 2014:

	(Unaudited)	(Unaudited)
	For the three	For the three
	months ended	months ended
	30 September	30 September
	2015	2014
	RMB’000	RMB’000
Turnover	314,740	158,891
Gross profit	8,815	11,781
Gross profit margin	2.8%	7.4%
Loss attributable to the owners of the Company	(12,268)	(5,291)

The Board wishes to inform the shareholders of the Company and potential investors that based on preliminary review on the unaudited management accounts of the Group for the Period, the Company has recorded unaudited consolidated turnover and gross profit of approximately RMB314,740,000 and RMB8,815,000, respectively, as well as a gross profit margin of 2.8% for the Period. The loss attributable to the owners of the Company was approximately RMB12,268,000 for the Period.

The increase in the turnover during the Period was mainly due to the increase of wafer shipments volume and the increase in sales of excess inventory of raw materials during the Period. The wafer shipments were approximately 124.2MW for the Period, representing an increase of 41.1 MW or 49.5% from approximately 83.1MW for the corresponding period last year. Also, the sales of excess inventory of raw materials were approximately RMB107.8 million during the Period, representing an increase of RMB78.2 million or 264.2% from approximately RMB29.6 million for the corresponding period last year. The decrease in gross profits and gross margin was mainly attributable to the decrease of average selling price of the 125mmx125mm wafers to approximately RMB1.6 per watt during the Period for 5.9% from approximately RMB1.7 per watt for the corresponding period last year. Also, the Group did not generate any profit from the sales of excess inventory of raw materials. Thus, such sales resulted in the decrease in gross margin. The increase in losses attributable to the owners of the Company during the Period was mainly attributable to the decrease of gross profits and the increase of operating expenses for the ramp up of new production facilities in Malaysia.

Meanwhile, the Group has maintained a healthy financial position during the Period. As at 30 September 2015, the Group was in a net debt position of approximately RMB250,393,000 which included cash and cash equivalent, note receivables endorsed by banks of approximately RMB257,332,000 and short-term bank loans of approximately RMB507,725,000. As at 30 September 2015, the net debt to equity ratio of the Group was approximately 18.7%.

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 for the Period and currently available information, which have not been audited or reviewed by the Company’s auditors.

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Shareholders of the Company and potential investors should exercise caution when dealing in the shares of the Company.

By Order of the Board Comtec Solar Systems Group Limited John ZHANG Chairman

Shanghai, the People’s Republic of China, 23 November 2015

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 Directors 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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