Comtec Solar Systems Group Limited — Audit Report / Information 2020

May 2, 2021

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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)

FURTHER ANNOUNCEMENT OF AUDITED FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

AUDITED FINAL RESULTS

Reference is made to the announcement of Comtec Solar Systems Group Limited (the “ Company ” and together with its subsidiaries, the “ Group ”) dated 31 March 2021, in relation to the unaudited final results for the year ended 31 December 2020 (the “ Announcement ”). Unless otherwise stated, capitalised terms used in this announcement shall have the same meaning as those defined in the Announcement.

The Board of Directors (the “ Board ”) of the Company is pleased to announce that the Company’s auditor, Prism CPA Limited (“ Prism ”), has completed its audit of the consolidated financial statements of the Group for the year ended 31 December 2020 in accordance with Hong Kong Standards on Auditing (“ HKSAs ”) issued by the Hong Kong Institute of Certified Public Accountants (“ HKICPA ”). Save for the reconciliation as disclosed in this announcement, the final results contained in the Announcement remain unchanged.

The figures in respect of the Group’s consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income and the related notes thereto for the year ended 31 December 2020 as set out in the Announcement have been audited by Prism to the amounts set out in the Group’s Annual Report for the year ended 31 December 2020 as approved by the Board on 30 April 2021 and the reconciliations are set out below. The work performed by Prism in this respect did not constitute an assurance engagement in accordance with HKSAs, Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagements issued by the HKICPA and consequently no assurance has been expressed by Prism on the Announcement.

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RECONCILIATION OF THE UNAUDITED AND AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

Set forth below are the reconciliation of the 2020 unaudited annual results of the Group and the audited financial information contained in the Annual Report. The items give rise to such differences are also set out in the respective notes below.

		Disclosure	Disclosure
		in the	in the
		Annual Report	Announcement	Difference
	Note	RMB’000	RMB’000	RMB’000
		(Audited)	(Unaudited)
Consolidated Statement of Profit or
Loss for the year ended 31 December
2020
Revenue		55,015	55,015	—
Cost of sales and services		(51,152)	(52,670)	1,518
Gross profit		3,863	2,345	1,518
Other income		8,230	5,354	2,876
Other net losses	1	(21,579)	(10,943)	(10,636)
Distribution and selling expenses		(1,014)	(1,014)	—
Administrative expenses		(35,674)	(36,727)	1,053
Research and development expenses		(1,112)	(1,112)	—
Share of profit of a joint venture		134	134	—
Share of loss of an associate		—	—	—
Finance costs		(23,770)	(23,450)	(320)
Loss before taxation		(70,922)	(65,413)	(5,509)
Income tax	2	4,087	62	4,025
Loss for the year		(66,835)	(65,351)	(1,484)
Loss for the year attributable to
Owners of the Company		(65,704)	(63,896)	(1,808)
Non-controlling interests		(1,131)	(1,455)	324
		(66,835)	(65,351)	(1,484)
		RMB cents	RMB cents	RMB cents
Loss per share
— Basic		(9.18)	(11.29)	2.11
— Diluted		(9.18)	(11.29)	2.11

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Note Consolidated Statement of Financial Position as at 31 December 2020 Non-current assets Investment properties Property, plant and equipment 3 Intangible assets Goodwill Interest in an associate Interest in a joint venture Deposits paid for acquisition of property, plant and equipment Current assets Inventories Trade and other receivables 4 Advance to suppliers Equity instruments at fair value through profit or loss Pledged bank deposits Bank balances and cash Current liabilities Trade and other payables 5 Contract liabilities Interest-bearing borrowings 5 Tax liabilities Deferred income Consideration payable Convertible bonds 6 Lease liabilities Net current liabilities	Disclosure in the Annual Report RMB’000 (Audited) 82,914 147,804 2,135 6,573 159 — 691 240,276 17,215 70,771 29,737 — 21,214 5,126 144,063 137,444 34,720 164,481 5,808 840 5,130 84,587 1,591 434,601 (290,538)	Disclosure in the Announcement RMB’000 (Unaudited) 86,027 134,826 2,135 3,807 159 — 415 227,369 14,633 80,678 29,737 — 21,214 5,126 151,388 127,557 35,141 170,038 5,808 537 5,130 — 3,445 347,656 (196,268)	Difference RMB’000 (3,113) 12,978 — 2,766 — — 276 12,907 2,582 (9,907) — — — — (7,325) 9,887 (421) (5,557) — 303 — 84,587 (1,854) 86,945 (94,270)

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		Disclosure	Disclosure
		in the	in the
		Annual Report	Announcement	Difference
	Note	RMB’000	RMB’000	RMB’000
		(Audited)	(Unaudited)
Total assets less current liabilities		(50,262)	31,101	(81,363)
Non-current liabilities
Interest-bearing borrowings		10,300	10,300	—
Deferred tax liabilities	2	11,541	17,456	(5,915)
Deferred income		7,329	7,632	(303)
Convertible bonds	6	—	72,624	(72,624)
Lease liabilities		9,713	11,813	(2,100)
		38,883	119,825	(80,942)
Net liabilities		(89,145)	(88,724)	(421)
Capital and reserves
Share capital		2,556	2,556	—
Reserves		(89,580)	(88,835)	(745)
Equity attributable to owners of the
Company		(87,024)	(86,279)	(745)
Non-controlling interests		(2,121)	(2,445)	324
Total deficits		(89,145)	(88,724)	(421)

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Notes:

1. The other net losses are adjusted upward as a result of the major changes as mentioned in Notes (3), (4) and (6);

2. Additional income tax for the year ended 31 December 2020 amounted to approximately RMB4 million is credited;

3. Having considered the facts and circumstances, impairment losses for property, plant and equipment were adjusted downward by approximately RMB13 million as at 31 December 2020;

4. As a result of recognising increased impairment losses under expected credit loss model, the impairment losses of trade and other receivables were adjusted upward by approximately RMB10 million during the year ended 31 December 2020;

5. Amounting to approximately RMB5 million in interest-bearing borrowings is reclassified as trade and other payables;

6. Additional fair value loss on the derivative component of the convertible bonds as at 31 December 2020 amounted to RMB10 million is recognised. Moreover, based on the terms for the subscription agreement of the convertible bonds, convertible bonds of approximately RMB85 million are reclassified from non-current liabilities to current liabilities since the convertible bonds will become mature within one year as at 31 December 2020.

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

Shanghai, the People’s Republic of China, 30 April 2021

As at the date of this announcement, the executive Director is Mr. John Yi Zhang, the non-executive Directors are Mr. Dai Ji and Mr. Qiao Fenglin, and the independent non-executive Directors are Mr. Jiang Qiang and Mr. Ma Teng.

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