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China Everbright
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appleronaldo
Veteran |
14-Jan-2016 15:11
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x 0 Alert Admin |
Director chen da wei bought $0.509...now can get cheaper than him |
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HuathuatLeo
Elite |
12-Jan-2016 16:38
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this one died. lmao hahaha |
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wxp8838
Veteran |
26-Oct-2015 08:50
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________________________________________________________________________________ DBS Bank Ltd. acted as the Financial Adviser to the Company in relation to the reverse takeover of the Company by China Everbright Water Holdings Limited which was completed on 12 December 2014. DBS Bank Ltd. assumes no responsibility for the contents of this announcement. 1 CHINA EVERBRIGHT WATER LIMITED Company Registration No.: 34074 (Incorporated in Bermuda) PROPOSED SHARE PREMIUM REDUCTION &ndash SUPPLEMENTAL ANNOUNCEMENT 1. INTRODUCTION The Board of Directors (the &ldquo Board&rdquo ) of China Everbright Water Limited (the &ldquo Company&rdquo or &ldquo CEWL&rdquo ) refers to the announcement dated 23 October 2015 (the &ldquo Announcement&rdquo ) in relation to the proposed reduction of the amount standing to the credit of the share premium account (the &ldquo Share Premium Account&rdquo ) of the Company (the &ldquo Share Premium Reduction&rdquo ). The Board wishes to provide more information to Shareholders on the accounting treatment in relation to the RTO. All capitalised terms used and not defined herein shall have the same meanings given to them in the Announcement. 2. ACCOUNTING TREATMENT IN RELATION TO THE RTO 2.1 Company Level. As disclosed in the Announcement, the Company had performed an impairment review to assess the Recoverable Amount1 of its investment in China Everbright Water Investments Limited (&ldquo CEWIL&rdquo ) in connection with the RTO. In accordance with International Accounting Standard 27 Separate Financial Statements (&ldquo IAS 27&rdquo ), an entity shall account for its investment in a subsidiary at cost and shall measure the cost with reference to the share price at the completion date. The cost of investment by the Company in CEWIL in connection with the RTO (the &ldquo Cost of Investment&rdquo ) was therefore recognised on the balance sheet of the Company by multiplying the share price of the Company as at the date of the completion of the RTO (the &ldquo Share Price&rdquo ) with the number of shares issued and allotted to China Everbright Water Holdings Limited as consideration for the RTO (the &ldquo Consideration Shares&rdquo ). Based on the Share Price, the Cost of Investment in CEWIL was recorded at approximately HK$11.6 billion and hence was higher than the Recoverable Amount of approximately HK$6.9 billion, which was based on the average of valuations performed by two independent professional firms. As a result of the issuance of the Consideration Shares and based on the Share Price, a share premium, being the amount by which the Cost of Investment exceeded the par value, of approximately HK$9.7 billion (the &ldquo Share Premium&rdquo ), was recognised on the balance sheet of the Company. Accordingly, in respect of the financial statements at the Company level, (i) the Impairment Loss amounting to approximately HK$4,698,870,000 was recognised in the Company&rsquo s profit 1 &ldquo Recoverable Amount&rdquo is defined under International Accounting Standards as the higher of an asset&rsquo s or cash-generating unit&rsquo s fair value less costs to sell and its value in use. 2 and loss statement for the financial year ended 31 December 2014 and (ii) the Share Premium of approximately HK$9.7 billion was recognised on the balance sheet of the Company as of 31 December 2014, in connection with the RTO. 2.2 CEWL Group Level. In comparison, at the CEWL Group level, the applicable accounting standards for the RTO is International Financial Reporting Standards 3 Business Combination, whose accounting treatment in the consolidated financial statements is different from IAS 27 at the Company level. 2.3 Impairment Loss. Accordingly, as set out in Paragraphs 2.1 and 2.2 above, the Impairment Loss was recognised as a result of an accounting treatment in accordance with the applicable accounting standards at the Company level only and it had no impact on the net asset value of the CEWL Group as of 31 December 2014 or the profit of the CEWL Group for the financial year ended 31 December 2014. 3. SHARE PREMIUM REDUCTION 3.1 Rationale. Under the laws of Bermuda, if a company has accumulated losses or net losses for a relevant year, the company may not declare or pay a dividend for such year. A Bermuda incorporated company can utilise the credit amount arising from a reduction of its share premium account to set off against the accumulated losses of the company, which will accordingly allow for future dividend payments if there are retained profits and the directors of the company so deem to be appropriate and subject to the relevant approvals. As such, as stated in the Announcement, the Board is of the view that the Share Premium Reduction is beneficial to the Company and the Shareholders as a whole as it will enable the Company to utilise the credit amount arising from the Share Premium Reduction to set off against the accumulated losses of the Company (including the accumulated losses resulting from the Impairment Loss) and will accordingly allow for future dividend payments if there are retained profits and deemed appropriate by the Board and subject to the relevant approvals. Shareholders, however, should note there can be no assurance that a dividend will be declared or paid in future even if the Share Premium Reduction becomes effective. 3.2 Financial Effects. The Share Premium Reduction will not have any impact on the net asset value, gearing or earnings per share of the CEWL Group. Shareholders should refer to the Announcement for the pro forma financial effects of the Share Premium Reduction on the shareholders&rsquo funds and reserves of the Company. By Order of the Board CHINA EVERBRIGHT WATER LIMITED Wang Tianyi Executive Director and Chairman 26 October 2015 |
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boochap
Member |
24-Oct-2015 17:03
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Maybe some financial experts can explain better, below is what i have read. Most of the listed chinese SOE pays dividend (the major ones are obliged to pay min 25% of earnings as div), so this might well be a good sign. http://smallbusiness.chron.com/accumulated-deficit-vs-retained-earnings-23194.html http://forum.shareinvestor.com/archive/0EE7109E/0EE71749/0EE71BBF/0EE71CAD/0EE71D07/0EE71D07_1.html Accumulated DeficitCompanies report negative retained earnings as accumulated deficit in the balance sheet. The accumulated deficit is a note to the original retained earnings account. For any more asset and operation losses, companies continue to report them in retained earnings to increase the accumulated deficit, while maintaining the balances of other capital accounts as initially recorded. However, the accumulated deficit is compared to balances of the contributed capital accounts. A company could be in an imminent danger of bankruptcy if the accumulated deficit has exceeded the amount of contributed capital. Deficit EliminationNegative retained earnings, or accumulated deficit, affect companies and their shareholders negatively. Unless negative retained earnings are restored to a positive balance, companies cannot pay out any dividends to shareholders. One way to eliminate the accumulated deficit is for companies to earn enough profits, but it can take a long time and may require additional funds. An alternative way of deficit elimination is to use certain accounting measures. For example, companies can write up the values of their assets to the fair market values and add the net increases to negative retained earnings to reduce and eventually eliminate the accumulated deficit |
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n3wbie
Elite |
24-Oct-2015 10:19
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if I am reading the announcement right, I don' t think there will actually be any financial effect from this action. 5. FINANCIAL EFFECTS 5.1 Net Asset Value, Gearing and Earnings per Share. The Share Premium Reduction will not have any impact on the net asset value, gearing or earnings per share of the CEWL Group. |
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Observers
Elite |
24-Oct-2015 08:21
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I don' t understand the implications either but it seems there will be a meeting convened for shareholders to approve this resolution, as well as a more detailed explanation to follow. Maybe it will be part of the mega deal announcement by President Xi when he visits SIngapore later next month. When he went to the US, it was the USD38 billion Boeing deal, and the recently concluded UK visit, it was 40 billion pounds. Wonder how many billions worth of deals he will announce in Singapore.
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fruitfulness
Veteran |
23-Oct-2015 22:45
Yells: "May the Lord God establish the works of my hands!" |
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This is very interesting news to me. Still need a financial/accounting expert to tell us the implications. I read that suddenly CEW is proposing to reduce share premium value (unlocking share value??) and make available HK$7.155 billion (approximately S$1.289 billion) as surplus. This is about 49.4 cts per share. CEW could potentially pay a dividend out from this, although it does not guarantee it. Also this amount could be spent in the Dalian project acquisition? Is this a potential windfall for CEW shareholders? |
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wxp8838
Veteran |
23-Oct-2015 20:17
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?????????????????????????????????????????? ________________________________________________________________________________ DBS Bank Ltd. acted as the Financial Adviser to the Company in relation to the reverse takeover of the Company by China Everbright Water Holdings Limited which was completed on 12 December 2014. DBS Bank Ltd. assumes no responsibility for the contents of this announcement. 1 CHINA EVERBRIGHT WATER LIMITED Company Registration No.: 34074 (Incorporated in Bermuda) PROPOSED SHARE PREMIUM REDUCTION 1. INTRODUCTION The Board of Directors (the &ldquo Board&rdquo ) of China Everbright Water Limited (the &ldquo Company&rdquo or &ldquo CEWL&rdquo ) refers to the audited consolidated financial statements of the Company and its subsidiaries (the &ldquo CEWL Group&rdquo ) for the financial year ended 31 December 2014 (the &ldquo FY2014 Results&rdquo ). As stated in the FY2014 Results: (i) during the year, the Company performed an impairment review to assess the recoverable amount of the cost of investment by the Company in China Everbright Water Investments Limited (&ldquo CEWIL&rdquo ) in connection with the acquisition by the Company of the entire issued and paid-up share capital of CEWIL from China Everbright Water Holdings Limited (the &ldquo CEWHL&rdquo ), a wholly-owned subsidiary of China Everbright International Limited, and the allotment and issue of shares to CEWHL as consideration for such acquisition (the &ldquo RTO&rdquo ) (ii) as the cost of investment in CEWIL was assessed to be higher than the recoverable amount, an impairment test was performed. The estimate of the recoverable amount of CEWIL was based on the valuations performed by two independent professional firms and (iii) based on this assessment, an impairment loss of HK$4,698,870,000 was recognised in the Company&rsquo s profit and loss statement in relation to its investment in CEWIL (the &ldquo Impairment Loss&rdquo ). In connection with the above, the Board wishes to announce a proposed reduction of the amount standing to the credit of the share premium account (the &ldquo Share Premium Account&rdquo ) of the Company (the &ldquo Share Premium Reduction&rdquo ), so as to utilise the credit amount arising from the Share Premium Reduction to set off against the accumulated losses of the Company (which includes the accumulated losses arising from the Impairment Loss). 2 2. THE SHARE PREMIUM REDUCTION 2.1 Share Premium Reduction. The Share Premium Reduction will involve the following: (i) the reduction of the entire amount standing to the credit of the Share Premium Account to nil (ii) the transfer of the credit amount arising from the Share Premium Reduction to the contributed surplus account of the Company (the &ldquo Contributed Surplus Account&rdquo ) and (iii) the granting of authority to the Directors to utilise and apply any credit balance in the Contributed Surplus Account in accordance with the Bye-laws of the Company, as amended from time to time, and all applicable laws (including the application of any credit balance to set off against accumulated losses of the Company), as and when the Directors may consider appropriate. 2.2 Share Premium Account and Accumulated Losses. As at 30 June 2015, the amount standing to the credit of the Share Premium Account is approximately HK$12,123,844,000 and the accumulated losses of the Company (including the accumulated losses resulting from the Impairment Loss) amount to approximately HK$4,452,787,000. 2.3 Effects of the Share Premium Reduction on Share Capital. The Share Premium Reduction does not involve any reduction in the authorised or issued share capital of the Company, nor does it involve the diminution of any liability in respect of unpaid share capital or the payment to any Shareholder of any paid up share capital of the Company. The Share Premium Reduction will also not result in any change in the number of ordinary shares in the capital of the Company (&ldquo Shares&rdquo ) held by any Shareholder. Each Shareholder will hold the same number of Shares before and immediately after the Share Premium Reduction. 3. RATIONALE The Board is of the view that the Share Premium Reduction is beneficial to the Company and the Shareholders as a whole as it will enable the Company to utilise the credit amount arising from the Share Premium Reduction to set off against the accumulated losses of the Company (including the accumulated losses resulting from the Impairment Loss) and will accordingly allow for future dividend payments if there are retained profits and deemed appropriate by the Board and subject to the relevant approvals. Shareholders, however, should note there can be no assurance that a dividend will be declared or paid in future even if the Share Premium Reduction becomes effective. 4. CONDITIONS The Share Premium Reduction is subject to, inter alia: (i) the approval of the Shareholders by way of a special resolution for the Share Premium Reduction (i.e. a resolution of the Company passed by a majority of not less than three-fourths of the votes cast by Shareholders who are entitled to do so and 3 vote in person or (where proxies are allowed) by proxy or, in the case of Shareholders which are corporations, by their respective duly authorised representatives or (where proxies are allowed) by proxy) at a special general meeting of the Shareholders to be convened (the &ldquo SGM&rdquo ) (ii) compliance with relevant legal procedures and requirements under Bermuda laws and Singapore laws (if any) to effect the Share Premium Reduction, including but not limited to the publication of a notice in an appointed newspaper in Bermuda at a date not more than 30 days and not less than 15 days before the effective date of the Share Premium Reduction (iii) on the date the Share Premium Reduction is to be effected, there being reasonable grounds for believing that the Company is, and after the said reduction would be, able to pay its liabilities as they become due and (iv) all other relevant approvals and consents being obtained. 5. FINANCIAL EFFECTS 5.1 Net Asset Value, Gearing and Earnings per Share. The Share Premium Reduction will not have any impact on the net asset value, gearing or earnings per share of the CEWL Group. 5.2 Shareholders&rsquo Funds and Reserves. The pro forma financial effects of the Share Premium Reduction on the shareholders&rsquo funds and reserves of the Company have been prepared based on the FY2014 Results, being the most recently completed financial year of the Company as at the date of this Announcement. The pro forma financial effects are purely for illustrative purposes only and are therefore not necessarily indicative of the actual financial position of the Company after the completion of the Share Premium Reduction. Assuming the Share Premium Reduction had been completed on 31 December 2014, being the end of the most recently completed financial year of the Company as at the date of this Announcement, the pro forma financial effects of the shareholders&rsquo funds and reserves of the Company for the financial year ended 31 December 2014 are as follows: Before the Share Premium Reduction Pro forma after the Share Premium Reduction Share capital (HK$&rsquo 000) 2,549,345 2,549,345 Share premium (HK$&rsquo 000) 11,584,834 &ndash Contributed surplus (HK$&rsquo 000) &ndash 7,154,517 Statutory reserve and other reserves (HK$&rsquo 000) 5,267 5,267 Accumulated losses (HK$&rsquo 000) (4,430,317) &ndash Equity attributable to equity holders of the Company (HK$&rsquo 000) 9,709,129 9,709,129 4 6. FURTHER INFORMATION A circular to Shareholders containing further details of the Share Premium Reduction and the notice of the SGM to be convened to seek the approval of Shareholders for the Share Premium Reduction will be despatched to Shareholders in due course. By Order of the Board CHINA EVERBRIGHT WATER LIMITED Wang Tianyi Executive Director and Chairman 23 October 2015 |
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Qanghoo
Supreme |
05-Oct-2015 15:55
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Brother, congrats. Chng Kay back in town ..... hope u' d huat big big.
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SeniorTrader
Senior |
01-Oct-2015 22:28
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x 0
x 0 Alert Admin |
Meaning tomoro may drop back to 60cent? Oh shit .....
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Qanghoo
Supreme |
01-Oct-2015 19:07
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I think ur qn auto answered today. Here no need news one. One moment, pressed down, next moment pumped up. Just look at Nam Cheong.
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haruta
Elite |
30-Sep-2015 21:56
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x 0 Alert Admin |
No way man. 扶 不 起 的 啊 斗
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SeniorTrader
Senior |
30-Sep-2015 21:05
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Is that any bad news announced? Why the price had reached lowest point (59.5cent)? Is that any news? Please share together. Thanks....
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n3wbie
Elite |
25-Sep-2015 14:14
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that' s why with the correction and given that this is supposed to be a resilient sector, wouldnt it present a good entry position now? just thought that it had consistently underperformed the industry peers and was wondering if anyone could share some colour.
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haruta
Elite |
25-Sep-2015 14:04
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Used to be more than a dollar. What do you think? Many ple Lost alot monies in this hope. | ||||
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n3wbie
Elite |
25-Sep-2015 13:57
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x 0
x 0 Alert Admin |
with the recent sell-down across most counters, any thoughts on CEWL? |
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chinastar
Veteran |
09-Jul-2015 11:58
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x 0
x 0 Alert Admin |
indeed:)
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treetops
Elite |
09-Jul-2015 09:19
Yells: "Moments Today, Memories Tomorrow!" |
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x 0
x 0 Alert Admin |
0.845 now. It' s time to shoot it down!
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haruta
Elite |
08-Jul-2015 22:33
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x 0
x 0 Alert Admin |
Waa drop so much.
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n3wbie
Elite |
08-Jul-2015 21:58
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when it comes to times of panic selling like the situation now, I think it is key to spot companies with strong fundamentals as it presents a buying opportunity, CEWL and SIIC looks attractive. |
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