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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| China West. | LSE:CHWI | London | Ordinary Share | GB0033330373 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.415 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMCHWI
RNS Number : 5749O
China Western Investments PLC
30 June 2010
30 June 2010
China Western Investments plc ("China Western" or "the Company")
Preliminary statement of results for the year ended 31 December 2009
Your Board has been actively seeking new investment funds by way of joint
venture, loans or new equity to allow the final phase of development at the
Group's development in Lanzhou as well as to progress the hospital operations.
Despite the Board's best endeavours new investment funds have remained elusive.
The Board is disappointed that funds have not been forthcoming to complete the
development and realise the full potential of the site. Your Board is
undertaking a full review of the options available to it. This may include
entering into joint ventures or outright sale of the property and / or the
hospital operations. Should the Board decide to take any of these options
shareholder approval will be sought as required by the AIM Rules for Companies.
As part of the Board's review of the development in Lanzhou, full consideration
has been given to the various elements of site. As a result of changes in the
building code in the People's Republic of China it is now doubtful whether the
foundations of the tower element of the development and the plans can be fully
utilised in any future development. As a result the Board consider it prudent to
impair the carrying value of this element of the development. Behind the main
development is a strip of land known as 'resettlement buildings'. It was the
Board's intention, in due course, to develop this land but certain payments
would be required to the existing occupiers of the site to allow development to
proceed. Recent increases in such payments coupled with the inability to raise
development funds has cast doubt on the economic viability of these plans and
the carrying value has been fully impaired in the year. The remaining element of
the Lanzhou development is the completed shopping arcade which is partly let. To
conserve the small amount of cash the Group holds, the Board decided not to
employ a professional valuation firm as at 31 December 2009 to assist it in
judging the open market value. In the Board's estimation, based on rental yields
and known local conditions, the value, on an open market basis, is not
materially different from that at 31 December 2008. However I must point out
that the local market remains soft and our local subsidiary did receive one
unsolicited offer, subject to conditions, of RMB 200m (approximately GBP18m).
Your Board considers this a distressed valuation (and represents a significant
discount to the Directors valuation of the property as at 31 December 2009) and
has as yet not actively pursued this offer.
Various shareholders and their related parties have continued to provide funds
during the year for the running costs of the plc and the Lanzhou property as
well as significant development funds for the continued expansion and
modernisation of the hospital. The Directors have agreed for a period of at
least 12 months from the date of this report to fund the fees and overhead costs
of the plc. The income from the property will cover the running costs excluding
interest, the interest and other liabilities of LITBC are being guaranteed for a
period of at least 12 months from the date of this report by GECC, a company
owned by Zhan Chun Hu, a director of the Company. GECC will similarly fund the
hospital operations although we believe these will be cash flow neutral in the
forthcoming periods. Based on the above consideration, the Directors consider
that the Company and Group has sufficient funds to meet its obligations for the
next 12 months. This view is reliant on the continuing support of loans from
shareholders which the Board are confident will be achieved.
During 2009 the Group made a profit before finance costs and write downs of
GBP546,000 (2008 - loss GBP328,000) which was the best result for many years.
The finance costs, however, remain high so that a loss, before the write down of
the property value and profit on sale of property held for resale, was incurred
totalling GBP1,011,000 (2008 - GBP1,501,000).
Chan Yim Sang
Deputy Chairman
29 June 2010
Enquiries:
+--------------------+-----------------+---------------------+
| China Western | Harry Jeffs | Tel: +44 01539 |
| Investments plc | | 723233 |
| | | |
+--------------------+-----------------+---------------------+
| Nominated Adviser, | Pascal Keane | Tel: +44 020 7408 |
| Shore Capital | | 4090 |
| | | |
+--------------------+-----------------+---------------------+
Directors' Report
The Directors present their report and the financial statements of the Group for
the year ended 31 December 2009.
Principal activities
The principal activity of the Company is that of a holding company.
The principal activities of the Group during the year were that of property
investment and that of hospital management.
Review of the business
Property investment assets amount to GBP38 million which are situated in China.
The property in China consists of the 10 storey Lanzhou International Trade
Centre and its adjacent resettlement buildings. The lower ground floor, levels
1 to 5 and levels 9 and 10 are tenanted. The Group also has an investment in
Tian Shui hospital which continues to increase revenues.
Future developments
As more fully explained in the Chairman's Statement the Board is undertaking a
full review of future operations. This may include a sale of all or part of its
operation in the People's Republic of China.
Principal risks and uncertainties
The Group's operations expose it to a variety of financial risks that include
the effect of changes in interest rate risk, liquidity risk and currency risk.
The key business risks and uncertainties facing the Group are considered to be
those deriving from the property market and in particular the effects that the
market has on property prices and rental returns. The Group also faces risk in
its ability to raise development finance to complete the construction of the
Lanzhou property unless the sale takes place.
The Board regularly monitors rental returns, ensures that it maintains good
relations with its tenants and offers competitive rental rates to ensure
occupancy remains high. Credit checks are also sought before new tenants are
accepted or during renewals of existing tenancy agreements to minimise bad
debts.
Financial risk management
The Group's operations expose it to a variety of financial risk that include the
effect of changes in interest rate risk, liquidity risk and currency risk.
These areas of risk and uncertainty are dealt with in Note 1 to the financial
statements.
Key performance indicators
The Board monitors progress of the overall group strategy and the individual
strategic elements by reference to cash flow and attempting to break-even on
trading operations. Segmental reporting and cash flow notes show the situation.
Results and dividends
The trading results for the year and the Group's financial position at the end
of the year are shown in the attached financial statements.
A review of the Group's results including future prospects is set out in the
Chairman's Statement.
The Directors have not recommended payment of a dividend (2008 - GBPNil).
The directors who served the Group during the period were as follows:
+-----------------+------------+--------------------------------+------+
| M A Shields | | Resigned 5th March 2010 | |
+-----------------+------------+--------------------------------+------+
| Chan Yim Sang | | | |
+-----------------+------------+--------------------------------+------+
| J Ho | | | |
+-----------------+------------+--------------------------------+------+
| Zhan Chun Hu | | | |
+-----------------+------------+--------------------------------+------+
| D A Thomas | | Resigned 5th March 2010 | |
+-----------------+------------+--------------------------------+------+
Significant Shareholdings
The Company has been notified of the following shareholdings of 3% or more as at
31 May 2010:
+------------------------------------+--------------+-------------+
| | 1p Ordinary | % |
| | Shares | |
+------------------------------------+--------------+-------------+
| Ho King Assets Corp * | 191,999,700 | 26.4 |
+------------------------------------+--------------+-------------+
| Zhan Chun Hu | 100,980,000 | 13.9 |
+------------------------------------+--------------+-------------+
| Wing Kit Enterprise Ltd *** | 100,980,000 | 13.9 |
+------------------------------------+--------------+-------------+
| Smith and Williamson Nominees Ltd | 91,728,634 | 12.6 |
+------------------------------------+--------------+-------------+
| Wong Wing Hay | 54,648,000 | 7.5 |
+------------------------------------+--------------+-------------+
| Roy Nominees Ltd | 46,417,000 | 6.4 |
+------------------------------------+--------------+-------------+
| Pointex Enterprises Ltd ** | 23,760,000 | 3.3 |
+------------------------------------+--------------+-------------+
| HSBC Global Custody Nominee (UK) | 22,850,001 | 3.1 |
| Ltd | | |
+------------------------------------+--------------+-------------+
| Ng Kin Wah **** | 21,333,300 | 3.0 |
+------------------------------------+--------------+-------------+
+------+--------------------------------------------------------------+
| * | Ho King Assets Corporation is owned by John Ho (65%) and |
| | Chan Yim Sang (35%) |
+------+--------------------------------------------------------------+
| ** | Pointex Enterprises Limited is wholly owned by the family of |
| | John Ho |
+------+--------------------------------------------------------------+
| *** | Wing Kit Enterprise Ltd is wholly owned by Zhan Chun Hu |
+------+--------------------------------------------------------------+
| **** | Ng Kin Wah holds the shares as security for a loan granted |
| | to Ho King Assets Corporation which will be transferred back |
| | to Ho King Assets Corporation upon repayment of the loan |
+------+--------------------------------------------------------------+
Payment of Suppliers
The Company and its subsidiary undertakings agree terms and conditions for their
business transactions with suppliers. Payment is then made in accordance with
these terms, subject to the terms and conditions being met by the supplier. As
at 31 December 2009, the Company had an average of 0 days (2008 - 0 days)
purchases outstanding in trade payables. The Group average for trade payables
expressed in relation to total amounts invoiced by suppliers for services during
period were equivalent to 466 days (2008 - 460 days). Some older creditor
amounts in China relate to past capital expenditure in dispute which distort the
days payable figures.
Corporate Governance Statement
In recognising the need for the highest standards of corporate behaviour and
accountability, the directors of China Western Investments plc support and have
adhered to the principles of good corporate governance. The Company established
an audit committee and a remuneration committee, which comprised the two
independent non-executive directors, namely M A Shields, as chairman, and D A
Thomas. Both Mr Shields and Mr Thomas resigned in March 2010 and have not so far
been replaced so that the committees have not recently met. The primary duties
of the committees are to review and supervise the financial reporting and
internal control procedures of the Group.
Going Concern
The Directors have formed a judgement at the time of approving the accounts that
there is a reasonable expectation that the Company and Group have adequate
resources to continue their operations for the foreseeable future. This
judgement is based on the fact that the shareholder loans will remain in place
and that interest will accrue but will not be paid. The Directors have agreed
to provide funds for overheads and fee costs for the holding company for the
next twelve months and the shareholder loan providers have agreed not to seek
repayment of loans or interest. GECC, a company owned by Zhan Chun Hu, a
director, has agreed to support the Group's operations in the People's Republic
of China for the next twelve months. For this reason, the Directors continue to
adopt the going concern basis in preparing the financial statements.
Post-Balance Sheet Events
The post-balance sheet events are set out in note 25 to the Financial
Statements.
Directors' Responsibilities in relation to the company's auditor
The Directors who held office at the date of approval of this Directors' Report
confirm that, so far as they are each aware, there is no relevant audit
information of which the company's Auditor is unaware; and each director has
taken steps that ought to have been taken as a director to make themselves aware
of any relevant audit information and to establish that the Company's Auditor is
aware of that information.
Auditors
Littlejohn LLP has signified its willingness to continue in office as auditors.
Registered office: Signed by
order of the directors
1 Beacon Buildings
Yard 23
Stramongate
Kendal
LA9 4BH
Approved by the directors on 29th June 2010
H Jeffs
Company Secretary
CHINA WESTERN INVESTMENTS PLC
31 December 2009
Group Statement of Comprehensive Income
+------------------------------------------------+----------+----------+
| | Year | Year |
| | ended | ended |
| | 31 | 31 |
| | December | December |
| | 2009 | 2008 |
| | | |
+------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+------------------------------------------------+----------+----------+
+-----------------------------------------+--+------------------+------------------+
| Revenue | | 1,985 | 1,240 |
+-----------------------------------------+--+------------------+------------------+
| | | | |
+-----------------------------------------+--+------------------+------------------+
| Cost of sales | | (363) | (162) |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| Gross profit | | 1,622 | 1,078 |
+-----------------------------------------+--+------------------+------------------+
| | | | |
+-----------------------------------------+--+------------------+------------------+
| Administrative expenses | | (1,076) | (1,406) |
+-----------------------------------------+--+------------------+------------------+
| | | | |
+-----------------------------------------+--+------------------+------------------+
| Finance costs | | (1,557) | (1,173) |
+-----------------------------------------+--+------------------+------------------+
| | | | |
+-----------------------------------------+--+------------------+------------------+
| Deficit on investment property | | (1,130) | (50) |
| revaluation | | | |
+-----------------------------------------+--+------------------+------------------+
| | | | |
+-----------------------------------------+--+------------------+------------------+
| Profit on sale of property held for | | 1,095 | - |
| resale | | | |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| (Loss) before taxation | | (1,046) | (1,551) |
+-----------------------------------------+--+------------------+------------------+
| | | | |
+-----------------------------------------+--+------------------+------------------+
| Income tax credit / (expense) | | 1,031 | (39) |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| (Loss) for the financial year | | (15) | (1,590) |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| Other comprehensive income: | | | |
+-----------------------------------------+--+------------------+------------------+
| Currency translation differences | | (1,253) | 7,125 |
+-----------------------------------------+--+------------------+------------------+
| Valuation losses on property under | | (18,262) | - |
| construction | | | |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| Total comprehensive income for the year | | (19,530) | 5,535 |
| net of tax | | | |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| Loss attributable to parent company's | | (18) | (1,588) |
| equity shareholders | | | |
+-----------------------------------------+--+------------------+------------------+
| Profit/(Loss) attributable to minority | | 3 | (2) |
| interests | | | |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| | | (15) | (1,590) |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| Total comprehensive income attributable | | | |
| to: | | | |
+-----------------------------------------+--+------------------+------------------+
| Parent company's equity shareholders | | (19,533) | 5,537 |
| | | | |
+-----------------------------------------+--+------------------+------------------+
| Minority interests | | 3 | (2) |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| | | (19,530) | 5,535 |
+-----------------------------------------+--+------------------+------------------+
| | | ---------------- | ---------------- |
+-----------------------------------------+--+------------------+------------------+
| (Loss) per share | | | |
+-----------------------------------------+--+------------------+------------------+
| Basic (p) & Diluted (p) | | (2.68) | (0.21) |
+-----------------------------------------+--+------------------+------------------+
The Company has taken advantage of the exemption in section 408 of the Companies
Act 2006 from presenting the Parent Company Statement of Comprehensive Income.
CHINA WESTERN INVESTMENTS PLC
31 December 2009
Group Statement of Changes in Equity
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
| | Share | Share |Revaluation | Merger |Retained | Minority |Translation | |
| |capital |premium | reserve |reserve |earnings |Interests | Reserve | Total |
| |GBP'000 |GBP'000 | GBP'000 |GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| Balance as | 7,283 | 32,919 | 18,262 | 3 | (28,369) | 212 | (643) | 29,667 |
| at 1 | | | | | | | | |
| January | | | | | | | | |
| 2008 | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| Loss for | - | - | - | - | (1,588) | (2) | - | (1,590) |
| the | | | | | | | | |
| financial | | | | | | | | |
| year | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| Currency | - | - | - | - | - | - | 7,125 | 7,125 |
| translation | | | | | | | | |
| differences | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
| Total | - | - | - | - | (1,588) | (2) | 7,125 | 5,535 |
| comprehensive | | | | | | | | |
| income for | | | | | | | | |
| the year | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
| Balance at | 7,283 | 32,919 | 18,262 | 3 | (29,957) | 210 | 6,482 | 35,202 |
| 31 | | | | | | | | |
| December | | | | | | | | |
| 2008 | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| Loss for | - | - | - | - | (18) | 3 | - | (15) |
| the | | | | | | | | |
| financial | | | | | | | | |
| year | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| Currency | - | - | - | - | - | - | (1,253) | (1,253) |
| translation | | | | | | | | |
| differences | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| Valuation | - | - | (18,262) | - | - | - | - | (18,262) |
| losses on | | | | | | | | |
| property | | | | | | | | |
| under | | | | | | | | |
| construction | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
| Total | - | - | (18,262) | - | (18) | 3 | (1,253) | (19,530) |
| comprehensive | | | | | | | | |
| income for | | | | | | | | |
| the year | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
| | | | | | | | | |
| Balance at | 7,283 | 32,919 | - | 3 | (29,975) | 213 | 5,229 | 15,672 |
| 31 | | | | | | | | |
| December | | | | | | | | |
| 2009 | | | | | | | | |
+---------------+---------+---------+-------------+---------+----------+-----------+-------------+----------+
CHINA WESTERN INVESTMENTS PLC
31 December 2009
Company Statement of Changes in Equity
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
| | Share | Share | Retained | |
| |capital | premium | earnings | Total |
| |GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | |
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
+--------------------------+---------+-----------+-----------+----------+
| Balance as at 1 January | 7,283 | 32,919 | (6,957) | 33,245 |
| 2008 | | | | |
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
+--------------------------+---------+-----------+-----------+----------+
| Loss for the financial | - | - | (1,243) | (1,243) |
| year | | | | |
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
+--------------------------+---------+-----------+-----------+----------+
| Total comprehensive | | | | |
| income for the year | - | - | (1,243) | (1,243) |
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
| Balance at 31 December | 7,283 | 32,919 | (8,200) | 32,002 |
| 2008 | | | | |
+--------------------------+---------+-----------+-----------+----------+
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
+--------------------------+---------+-----------+-----------+----------+
| Loss for the financial | - | - | (342) | (342) |
| year | | | | |
+--------------------------+---------+-----------+-----------+----------+
| Write down of | - | - | (11,103) | (11,103) |
| investments | | | | |
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
+--------------------------+---------+-----------+-----------+----------+
| Total comprehensive | | | | |
| income for the year | - | - | (11,445) | (11,445) |
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
+--------------------------+---------+-----------+-----------+----------+
| | | | | |
| Balance at 31 December | 7,283 | 32,919 | (19,645) | 20,557 |
| 2009 | | | | |
+--------------------------+---------+-----------+-----------+----------+
CHINA WESTERN INVESTMENTS PLC
Group Balance Sheet
31 December 2009
+-+--------------------------------------------+---+------------------+------------+----------+
| | | 31 December | 31December | |
| | | 2009 | 2008 | |
+-+------------------------------------------------+------------------+------------+----------+
| | | GBP000 | GBP000 | |
+-+------------------------------------------------+------------------+------------+----------+
| | | | Restated |
+----------------------------------------------+---+------------------+-----------------------+
| ASSETS | | | |
+----------------------------------------------+---+------------------+-----------------------+
| Non-current assets | | | |
+----------------------------------------------+---+------------------+-----------------------+
| Investment property | | 38,572 | 40,616 |
+----------------------------------------------+---+------------------+-----------------------+
| Property, plant and equipment | | 2,361 | 1,033 |
+----------------------------------------------+---+------------------+-----------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+---+------------------+-----------------------+
| Total non-current assets | | 40,933 | 41,649 |
+----------------------------------------------+---+------------------+-----------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+---+------------------+-----------------------+
| | | | |
| Non-current assets held for sale | | - | 1,150 |
+----------------------------------------------+---+------------------+-----------------------+
| Current assets | | | |
+----------------------------------------------+---+------------------+-----------------------+
| Trade and other receivables | | 315 | 190 |
+----------------------------------------------+---+------------------+-----------------------+
| Property under construction | | - | 19,397 |
+----------------------------------------------+---+------------------+-----------------------+
| Inventories | | 52 | 30 |
+----------------------------------------------+---+------------------+-----------------------+
| Cash and cash equivalents | | 35 | 30 |
+----------------------------------------------+---+------------------+-----------------------+
| | | -------------- | -------------- |
+----------------------------------------------+---+------------------+-----------------------+
| Total current assets | | 402 | 19,647 |
+----------------------------------------------+---+------------------+-----------------------+
| | | -------------- | -------------- |
+----------------------------------------------+---+------------------+-----------------------+
| TOTAL ASSETS | | 41,335 | 62,446 |
+----------------------------------------------+---+------------------+-----------------------+
| | | ------ | ------ |
+----------------------------------------------+---+------------------+-----------------------+
| EQUITY AND LIABILITIES | | | |
+----------------------------------------------+---+------------------+-----------------------+
| Share capital | | 7,283 | 7,283 |
+----------------------------------------------+---+------------------+-----------------------+
| Share premium | | 32,919 | 32,919 |
+----------------------------------------------+---+------------------+-----------------------+
| Other reserves | | 5,232 | 24,747 |
+----------------------------------------------+---+------------------+-----------------------+
| Retained earnings | | (29,975) | (29,957) |
+----------------------------------------------+---+------------------+-----------------------+
| | | -------------- | -------------- |
+----------------------------------------------+---+------------------+-----------------------+
| Attributable to parent company's equity | | 15,459 | 34,992 |
| shareholders | | | |
+----------------------------------------------+---+------------------+-----------------------+
| Minority interest | | 213 | 210 |
+----------------------------------------------+---+------------------+-----------------------+
| | | --------------- | --------------- |
+----------------------------------------------+---+------------------+-----------------------+
| Total equity | | 15,672 | 35,202 |
+----------------------------------------------+---+------------------+-----------------------+
| | | --------------- | --------------- |
+----------------------------------------------+---+------------------+-----------------------+
| Non-current liabilities | | | |
+----------------------------------------------+---+------------------+-----------------------+
| Financial liabilities | | 270 | 270 |
+----------------------------------------------+---+------------------+-----------------------+
| Trade and other payables | | 378 | - |
+----------------------------------------------+---+------------------+-----------------------+
| Deferred tax liability | | 4,497 | 5,585 |
+----------------------------------------------+---+------------------+-----------------------+
| | | --------------- | --------------- |
+----------------------------------------------+---+------------------+-----------------------+
| Total non-current liabilities | | 5,145 | 5,855 |
+----------------------------------------------+---+------------------+-----------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+---+------------------+-----------------------+
| Current liabilities | | | |
+----------------------------------------------+---+------------------+-----------------------+
| Trade and other payables | | 4,870 | 5,154 |
+----------------------------------------------+---+------------------+-----------------------+
| Short term borrowings | | 15,453 | 16,042 |
+----------------------------------------------+---+------------------+-----------------------+
| Current tax liabilities | | 195 | 193 |
+----------------------------------------------+---+------------------+-----------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+---+------------------+-----------------------+
| Total current liabilities | | 20,518 | 21,389 |
+----------------------------------------------+---+------------------+-----------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+---+------------------+-----------------------+
| Total liabilities | | 25,663 | 27,244 |
+----------------------------------------------+---+------------------+-----------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+---+------------------+-----------------------+
| | | | | | |
+-+--------------------------------------------+---+------------------+------------+----------+
+--------------------------------------------+--+--------+--------+
| TOTAL EQUITY AND LIABILITIES | | 41,335 | 62,446 |
+--------------------------------------------+--+--------+--------+
| | | ----- | ----- |
+--------------------------------------------+--+--------+--------+
These financial statements were approved by the board of directors and
authorised for issue on the 29th June 2010 and are signed on their behalf by:
____________________
J Ho
CHINA WESTERN INVESTMENTS PLC
Company registered number: 4675439
Company Balance Sheet
31 December 2009
+-+--------------------------------------------+--+-+------------------+----------+----------+
| | | 31 | 31 | |
| | | December | December | |
| | | 2009 | 2008 | |
+-+-----------------------------------------------+--------------------+----------+----------+
| | Note | GBP000 | GBP000 | |
+-+-------------------------------------------------+------------------+----------+----------+
| ASSETS | | | |
+----------------------------------------------+----+------------------+---------------------+
| Non-current assets | | | |
+----------------------------------------------+----+------------------+---------------------+
| Investments | | 24,537 | 35,640 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| Total non-current assets | | 24,537 | 35,640 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| Current assets | | | |
+----------------------------------------------+----+------------------+---------------------+
| Trade and other receivables | | 972 | 1,080 |
+----------------------------------------------+----+------------------+---------------------+
| Cash and cash equivalents | | 10 | 9 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| Total current assets | | 982 | 1,089 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| TOTAL ASSETS | | 25,519 | 36,729 |
+----------------------------------------------+----+------------------+---------------------+
| | | ------- | ------ |
+----------------------------------------------+----+------------------+---------------------+
| EQUITY AND LIABILITIES | | | |
+----------------------------------------------+----+------------------+---------------------+
| Share capital | | 7,283 | 7,283 |
+----------------------------------------------+----+------------------+---------------------+
| Share premium | | 32,919 | 32,919 |
+----------------------------------------------+----+------------------+---------------------+
| Retained earnings | | (19,645) | (8,200) |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| Total equity | | 20,557 | 32,002 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| Non-current liabilities | | | |
+----------------------------------------------+----+------------------+---------------------+
| Financial liabilities | | 270 | 270 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| Total non-current liabilities | | 270 | 270 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| Current liabilities | | | |
+----------------------------------------------+----+------------------+---------------------+
| Trade and other payables | | 1,736 | 1,417 |
+----------------------------------------------+----+------------------+---------------------+
| Short term borrowings | | 2,956 | 3,040 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| Total current liabilities | | 4,692 | 4,457 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| Total liabilities | | 4,962 | 4,727 |
+----------------------------------------------+----+------------------+---------------------+
| | | ---------------- | ---------------- |
+----------------------------------------------+----+------------------+---------------------+
| TOTAL EQUITY AND LIABILITIES | | 25,519 | 36,729 |
+----------------------------------------------+----+------------------+---------------------+
| | | ------- | ------- |
+----------------------------------------------+----+------------------+---------------------+
| | | | | | | |
+-+--------------------------------------------+--+-+------------------+----------+----------+
These financial statements were approved by the board of directors and
authorised for issue on the 29th June 2010 and are signed on their behalf by:
____________________
J Ho
CHINA WESTERN INVESTMENTS PLC
Group cashflow statement
Year ended 31 December 2009
+--------------------------------------------+---+----------+----------+
| | | | Restated |
+--------------------------------------------+---+----------+----------+
| Group Cash Flow | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Cash flows from operating activities | | | |
+--------------------------------------------+---+----------+----------+
| Loss before tax | | (1,046) | (1,551) |
+--------------------------------------------+---+----------+----------+
| Adjustments for: | | | |
+--------------------------------------------+---+----------+----------+
| Depreciation | | 218 | 146 |
+--------------------------------------------+---+----------+----------+
| Deficit on revaluation | | 1,130 | 50 |
+--------------------------------------------+---+----------+----------+
| Profit on sale of property | | (1,095) | - |
+--------------------------------------------+---+----------+----------+
| Interest payable | | 1,557 | 1,186 |
+--------------------------------------------+---+----------+----------+
| Increase in inventories | | (24) | (2) |
+--------------------------------------------+---+----------+----------+
| (Increase)/decrease in trade and other | | (135) | 112 |
| receivables | | | |
+--------------------------------------------+---+----------+----------+
| (Decrease) / increase in trade and other | | (196) | (362) |
| payables | | | |
+--------------------------------------------+---+----------+----------+
| | | ----- | ----- |
+--------------------------------------------+---+----------+----------+
| Cash from operations | | 409 | (421) |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Income taxes paid | | (45) | (54) |
+--------------------------------------------+---+----------+----------+
| | | ----- | ----- |
+--------------------------------------------+---+----------+----------+
| Net cash generated / (used in) from | | 364 | (475) |
| operating activities | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Cash flows from investing activities | | | |
+--------------------------------------------+---+----------+----------+
| Purchase of property, plant and equipment | | (140) | (184) |
+--------------------------------------------+---+----------+----------+
| | | ----- | ----- |
+--------------------------------------------+---+----------+----------+
| Net cash used in investing activities | | (140) | (184) |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Cash flows from financing activities | | | |
+--------------------------------------------+---+----------+----------+
| Interest paid | | (31) | (13) |
+--------------------------------------------+---+----------+----------+
| Repayment of borrowings | | (187) | (195) |
+--------------------------------------------+---+----------+----------+
| Proceeds from borrowings | | - | 876 |
+--------------------------------------------+---+----------+----------+
| | | ----- | ----- |
+--------------------------------------------+---+----------+----------+
| Net cash (used in) / generated from | | (218) | 668 |
| financing activities | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Net increase in cash and cash equivalents | | 6 | 9 |
+--------------------------------------------+---+----------+----------+
| Foreign exchange movement | | (1) | 1 |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Cash and cash equivalents at beginning of | | 30 | 20 |
| year | | | |
+--------------------------------------------+---+----------+----------+
| | | ----- | ----- |
+--------------------------------------------+---+----------+----------+
| Cash and cash equivalents at end of year | | 35 | 30 |
+--------------------------------------------+---+----------+----------+
| | | ----- | ----- |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Significant non-cash transactions | | | |
+--------------------------------------------+---+----------+----------+
| Sale of property held for resale | | 2,152 | - |
+--------------------------------------------+---+----------+----------+
| Assignment of loan | | (1,091) | - |
+--------------------------------------------+---+----------+----------+
| Assignment of interest | | (1,061) | - |
+--------------------------------------------+---+----------+----------+
| | | ----- | ----- |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
| | | | |
| | | | |
+--------------------------------------------+---+----------+----------+
| | | | Restated |
+--------------------------------------------+---+----------+----------+
| Company Cash Flow | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Cash flows from operating activities | | | |
+--------------------------------------------+---+----------+----------+
| Loss before tax | | (11,445) | (1,242) |
+--------------------------------------------+---+----------+----------+
| Adjustments for: | | | |
+--------------------------------------------+---+----------+----------+
| Write down in investments | | 11,103 | - |
+--------------------------------------------+---+----------+----------+
| Interest payable | | 274 | 199 |
+--------------------------------------------+---+----------+----------+
| Decrease in trade and other receivables | | 108 | 3 |
+--------------------------------------------+---+----------+----------+
| Increase / (decrease) in trade and other | | 76 | (2) |
| payables | | | |
+--------------------------------------------+---+----------+----------+
| | | ------ | ------ |
+--------------------------------------------+---+----------+----------+
| Cash generated from / (used in) operations | | 116 | (1,042) |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Cash flows from financing activities | | | |
+--------------------------------------------+---+----------+----------+
| Interest paid | | (31) | (13) |
+--------------------------------------------+---+----------+----------+
| Proceeds from borrowings | | - | 1,063 |
+--------------------------------------------+---+----------+----------+
| Repayment of borrowings | | (84) | - |
+--------------------------------------------+---+----------+----------+
| | | ------ | ------ |
+--------------------------------------------+---+----------+----------+
| Net cash (used in) / generated from | | (115) | 1,050 |
| financing activities | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Net increase in cash and cash equivalents | | 1 | 8 |
+--------------------------------------------+---+----------+----------+
| | | | |
+--------------------------------------------+---+----------+----------+
| Cash and cash equivalents at beginning of | | 9 | 1 |
| year | | | |
+--------------------------------------------+---+----------+----------+
| | | ----- | ----- |
+--------------------------------------------+---+----------+----------+
| Cash and cash equivalents at end of year | | 10 | 9 |
| | | | |
+--------------------------------------------+---+----------+----------+
| | | ----- | ----- |
+--------------------------------------------+---+----------+----------+
1.Segmental information
During the year, the Group operated two principal classes of business, that of
property investment and hospital management. All of the Group's trading
activities are conducted and based in the People's Republic of China. The
Parent Company operates a head office based in the United Kingdom which incurred
certain administration and corporate costs.
An analysis of revenue is given below:
+--------------------------------------------+---------+---------+
| | 2009 | 2008 |
+--------------------------------------------+---------+---------+
| | GBP000 | GBP000 |
+--------------------------------------------+---------+---------+
+--------------------------------------------+---------------+----------------+
| People's Republic of China | | |
+--------------------------------------------+---------------+----------------+
| Rental income | 463 | 367 |
+--------------------------------------------+---------------+----------------+
| Medical income | 1,522 | 873 |
+--------------------------------------------+---------------+----------------+
| | ------------- | -------------- |
+--------------------------------------------+---------------+----------------+
| | 1,985 | 1,240 |
+--------------------------------------------+---------------+----------------+
| | ========= | ========== |
+--------------------------------------------+---------------+----------------+
All revenue generated is from external sources from the Group.
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | 2009 | 2008 |
+-----------------------+---------------------------------------+--------------------------------------+
| | Property | Hospital | Property | Hospital |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | | | | |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Gross profit | 463 | 1,159 | 473 | 605 |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | ------------- | ------------- | ------------- | ------------- |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Staff costs | 49 | 329 | 49 | 311 |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Overhead expenses | 130 | 388 | 94 | 287 |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Depreciation | 34 | 184 | 47 | 99 |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Interest cost | 1,004 | 282 | 623 | - |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | ------------- | -------------- | ------------- | -------------- |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Trading loss before | | | | |
| write downs and | (754) | (24) | (340) | (92) |
| profit on property | | | | |
| sale | | | | |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | ========= | ========== | ========= | ========== |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Total assets | 39,032 | 2,293 | 61,438 | 999 |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Total liabilities | 17,842 | 2,859 | 20,898 | 1,619 |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | ========= | ========== | ========= | ========== |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Total (loss) as above | | (778) | | (432) |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Plc costs not | | (233) | | (1,069) |
| allocated | | | | |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | | -------------- | | -------------- |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Trading loss before | | | | |
| write downs and | | (1,011) | | (1,501) |
| profit on property | | | | |
| sale | | | | |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Deficit on investment | | | | |
| property revaluation | | (1,130) | | (50) |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Profit on sale of | | | | |
| property held for | | 1,095 | | - |
| resale | | | | |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | | ---------------- | | ---------------- |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| (Loss) before | | (1,046) | | (1,551) |
| taxation | | | | |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | | =========== | | ========== |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | Assets | Liabilities | Assets | Liabilities |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Total segmental | 41,325 | 20,701 | 62,437 | 22,517 |
| assets / liabilities | | | | |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Plc assets / | 10 | 4,962 | 9 | 4,727 |
| liabilities | | | | |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | ----------------- | ----------------- | ----------------- | ---------------- |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| Total Group | 41,335 | 25,663 | 62,446 | 27,244 |
+-----------------------+-------------------+-------------------+-------------------+------------------+
| | =========== | =========== | =========== | ========== |
+-----------------------+-------------------+-------------------+-------------------+------------------+
2.Loss per share
+--------------------------------------------+---------+---------+
| | 2009 | 2008 |
+--------------------------------------------+---------+---------+
| | Pence | Pence |
+--------------------------------------------+---------+---------+
+--------------------------------------------+----------+----------+
| Loss per ordinary share - total operations | (2.68) | (0.21) |
+--------------------------------------------+----------+----------+
| | ======== | ======== |
+--------------------------------------------+----------+----------+
Loss per share is based on the loss for the year ended 31 December 2009:
GBP19,530,000 and the loss for the year ended 31 December 2008: GBP1,590,000
divided by the weighted average number of shares issued during the year ended 31
December 2009: 728,375,495 and the period ended 31 December 2008: 728,375,495.
No diluted earnings per share is presented as the effect of the conversion of
the convertible redeemable loan would be to decrease the loss per share.
3.Investment properties
+--------------------------------------------+----------+----------+
| Group | 2009 | 2008 |
| Land use rights | | |
+--------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+--------------------------------------------+----------+----------+
Fair Value
+--------------------------------------------+--------------------------+--------------------------+
| At 1 January | 40,616 | 30,698 |
+--------------------------------------------+--------------------------+--------------------------+
| Write down in value | (1,130) | (50) |
+--------------------------------------------+--------------------------+--------------------------+
| Transfer to asset held for sale | | (1,150) |
| | - | |
+--------------------------------------------+--------------------------+--------------------------+
| Exchange translation | (914) | 11,118 |
+--------------------------------------------+--------------------------+--------------------------+
| | ------------------------ | ------------------------ |
+--------------------------------------------+--------------------------+--------------------------+
| At 31 December 2009 | 38,572 | 40,616 |
+--------------------------------------------+--------------------------+--------------------------+
| | =============== | =============== |
+--------------------------------------------+--------------------------+--------------------------+
All of the investment property assets are held in the People's Republic
of China. The land use rights of the land relate to the investment property is
vested in Lanzhou International Trade Building Company Limited (LITBC) for a
term between 1993 and 2032.
To conserve the small amount of cash the Group holds the Board decided
not to employ a professional valuation firm as at 31 December 2009 to assist it
in judging the open market value. In the Board's estimation, based on rental
yields and known local conditions, the value on an open market basis is
marginally lower than at 31 December 2008.
Investment properties generating the following rental income and direct
operating expenses:
+--------------------------------------------+----------+----------+
| Group | | 2008 |
| | 2009 | |
+--------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+--------------------------------------------+----------+----------+
+--------------------------------------------+----------+----------+
| Rental income | 463 | 367 |
+--------------------------------------------+----------+----------+
| | ======== | ======== |
+--------------------------------------------+----------+----------+
| Wages | (49) | (49) |
+--------------------------------------------+----------+----------+
| Direct operating expenses relating to | (164) | (141) |
| generating rental income | | |
+--------------------------------------------+----------+----------+
| | ======== | ======== |
+--------------------------------------------+----------+----------+
| Net rental income/(expense) from rented | 250 | 177 |
| properties | | |
+--------------------------------------------+----------+----------+
| | ======== | ======== |
+--------------------------------------------+----------+----------+
4. Property under construction
+--------------------------+---------+---------+---------+---------+
| | Group | Company |
+--------------------------+-------------------+-------------------+
| | | 2008 | 2009 | 2008 |
| | 2009 | | | |
+--------------------------+---------+---------+---------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------------+---------+---------+---------+---------+
+--------------------------+----------------------------+----------------------------+----------------------------+----------------------------+
| Cost and Net Book Values | | | | |
+--------------------------+----------------------------+----------------------------+----------------------------+----------------------------+
| At 1 January | 19,397 | 19,397 | - | - |
+--------------------------+----------------------------+----------------------------+----------------------------+----------------------------+
| Write down in value | (18,262) | - | - | - |
+--------------------------+----------------------------+----------------------------+----------------------------+----------------------------+
| Exchange translation | (1,135) | - | - | - |
+--------------------------+----------------------------+----------------------------+----------------------------+----------------------------+
| | -------------------------- | -------------------------- | -------------------------- | -------------------------- |
+--------------------------+----------------------------+----------------------------+----------------------------+----------------------------+
| At 31 December | - | 19,397 | - | - |
+--------------------------+----------------------------+----------------------------+----------------------------+----------------------------+
| | ================= | ================= | =============== | ================= |
+--------------------------+----------------------------+----------------------------+----------------------------+----------------------------+
As part of the Board's review of the development in Lanzhou, full consideration
has been given to the various elements of the site. As a result of changes in
the building code in the People's Republic of China it is now doubtful whether
the foundations of the tower element of the development and the plans can be
fully utilised in any future development. As a result the Board consider it
prudent to impair the carrying value of this element of the development. Behind
the main development is a strip of land known as "resettlement buildings". It
was the Board's intention, in due course, to develop this land but certain
payments would be required to the existing occupiers of the site to allow
development to proceed. Recent increases in such payments coupled with the
inability to raise development funds has cast doubt on the economic viability of
these plans and the carrying value has been fully impaired in the year.
5. Post balance sheet events.
A general meeting is planned to:
· grant options over new ordinary shares at 1p representing 29% of the
share capital of the company to Wong Wing Hay in consideration for the loan
principal outstanding;
· amend the Articles to remove reference to authorised share capital;
6. The accounts will be posted to shareholders on 30th June 2010 and posted to
the company's website: http://www.chwi.co.uk/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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