Response To Sgx Queries On The Second Quarter Financial Statement And Related Announcement Released On 4 August 2011
Publish Date:
12 August, 2011 - 00:50
The Board of Directors of CentraLand Limited (the “Company”) wishes to announce the following response to queries raised by Singapore Exchange Securities Trading Limited (“SGX-ST”) in its email on 10 August 2011 (“SGX Query”) on the announcement of the second quarter financial statement and related announcement for the period ended 30 June 2011.
SGX queries:
1. We note that trade and bills payables increased by 160%, from 18.6 million as at 31 December 2010 to RMB48.3 million as at 30 June 2011. In this respect, please provide the following information:
a. reasons for the significant increase; and
b. a breakdown of the material items contributing to the increase.
Company’s response:
In the first half of FY2011, the Group has two projects, namely Phase III Guoling Shanshui (果岭山水) and J-Expo 2 (金智.万博商城二期) under construction. As their construction are in progress, additional accruals of the development and related costs incurred by construction contractors have contributed to the 160% increase in trade and bills payable during the period.
2. We note that accruals and other payables increased by 97%, from RMB59.1 million as at 31 December 2010 to RMB116.5 million as at 30 June 2011. In this respect, please provide the following information:
a. reasons for the significant increase; and
b. a breakdown of the material items contributing to the increase.
Company’s response:
The 97% increase in accruals and other payables in the first half of FY2011 are mainly attributable to:
a. Additional Quality Assurance Deposit (质量保证金) amounting to RMB39.5m have been accrued and retained by the Group from construction contractors upon completion of Stage 1 of Phase III Guoling Shanshui (果岭山水). This amount will typically be released to the contractors after the one-year warranty period or upon completion of rectification work on defects; and
b. RMB10.7m being accrual of handling and professional fees incurred for a long term RMB250m loan raised during the period. It was classified under long term bank and other borrowings in the statement of financial position.
By order of the Board
Yan Tao
Chief Executive Officer
11 August 2011
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