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.
OVERSEAS REGULATORY ANNOUNCEMENT
(This overseas regulatory announcement is issued pursuant to Rule 13.10B of the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)
The following announcement is released by CITIC Envirotech Ltd. (a subsidiary of
CITIC Limited) to Singapore Exchange Limited on 14 March 2017:Clarification on CITIC Envirotech Ltd.’s full year results for the financial year ended
31 December 2016
Hong Kong, 14 March 2017
As at the date of this announcement, the executive directors of CITIC Limited are Mr Chang Zhenming
(Chairman), Mr Wang Jiong, Ms Li Qingping and Mr Pu Jian; the non-executive directors of CITIC
Limited are Mr Yang Jinming, Mr Liu Yeqiao, Mr Song Kangle, Ms Yan Shuqin, Mr Liu Zhongyuan
and Mr Yang Xiaoping; and the independent non-executive directors of CITIC Limited are Mr Francis
Siu Wai Keung, Dr Xu Jinwu, Mr Anthony Francis Neoh, Ms Lee Boo Jin, Mr Noriharu Fujita and
Mr Paul Chow Man Yiu.
CITIC ENVIROTECH LTD
(Company Registration Number: 200306466G)
===============================================================
CLARIFICATION ON THE COMPANY’S FULL YEAR RESULTS FOR THE
FINANCIAL YEAR ENDED 31 DECEMBER 2016
________________________________________________________________________
The Board of Directors (the “Board”) of CITIC Envirotech Ltd (“Group” or the
“Company”) wishes to announce the clarification set out below in respect of the full year
results of the Company for the financial year ended 31 December 2016.
SGX query
Please address/provide an explanation on the increase in the impairment loss on
non-current assets held for sale and allowance for doubtful receivables. In
particular, please provide a breakdown of the assets that have been impaired and
the circumstances for the increase in allowance for doubtful receivables.
Company response
The impairment loss on the non-current assets held for sale pertained to the loss from the
disposal of CITIC Envirotech Water Resource (Hegang) Co Ltd (“Hegang”). Subsequent
to the financial year ended 31 December 2016, the disposal of Hegang was completed.
The allowance for doubtful receivables was provided based on the management’s
assessment on the trade receivables. The allowance was made for the long outstanding
trade debtors that were unlikely to be collected.
SGX query
Please address/provide an explanation on the increase in the balance of the
intangible assets at the CEL Group level.
Company response
Intangible assets pertained to the concessions/investment projects that the Group had
secured. An increase in the balance of the intangible assets was mainly due to new
additions/investments during the financial year.
SGX query
Please address/provide an explanation on the Board’s assessment on the
recoverability of the trade receivables under the Company’s current assets. Please
also disclose an aging list of the trade receivables and details of the credit terms
which have been extended.
Company response
In assessing the recoverability of the Group’s trade receivables, the Board takes into
consideration the aging status and the likelihood of collection. Following the
identification of doubtful debts, the management personnel responsible for the project
discusses with the relevant customers and reports on the recoverability of such debts.
Specific allowance is made for receivables that are unlikely to be collected.
Aging list of the Trade Receivables:
Aging profile
0 – 6 months
6 – 12 months
1 – 2 years
> 2 years
Total trade receivables
31 Dec 2016
(S$’000)
149,056
74,350
34,636
7,408
265,450
The average credit period on sales of goods and rendering of services are 180 days.
SGX query
Please disclose the terms of receipt and an aging list for the service concession
receivables under the Company’s non-current assets.
Company response
Service concession receivables pertained to the concessions/investment projects that the
Group had secured. The service concession receivables will be amortised over the tenure
of the concessions.
The maturity analysis of service concession receivables:
$’000
In operation:
On demand or within one year
In the second to fifth year inclusive
After five years
Total
6,248
65,090
448,659
519,997
Under construction
Total service concession receivables
83,442
603,439
BY ORDER OF THE BOARD
Lotus Isabella Lim Mei Hua
Company Secretary
14 March 2017