DJ HK Bourse: Results Announcement From Enviro Energy International Holdings Ltd.

For full details, please click on the following link:
https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0812/2020081201015.pdf SUPPLEMENTAL ANNOUNCEMENT ON THE ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019
Reference is made to the announcement (the "2019 Results Announcement") of Enviro
Energy International Holdings Limited (the "Company") dated 31 March 2020 in relation
to its annual results for the year ended 31 December 2019 (the "Annual Results").
Unless otherwise defined, capitalized terms used herein shall have the same meanings as
those defined in the 2019 Results Announcement.
As disclosed in the 2019 Results Announcement, the Company's auditors issued a qualified
opinion for the Company's Annual Results in relation to: (i) recoverability of trade
receivables of approximately HK$18 million, loan receivable of approximately HK$167
million, interest receivable of approximately HK$22 million, prepayments for purchase of
trading materials of approximately HK$292 million and consideration receivables of
approximately HK$131 million as at 31 December 2019; and (ii) loan receivable of
approximately HK$171 million, interest receivable of approximately HK$9 million,
prepayments for purchase of trading materials of approximately HK$294 million and
consideration receivables of approximately HK$135 million as at 31 December 2018
(collectively, the "Audit Qualifications").
This supplemental announcement is intended to provide further information to the
Shareholders and potential investors on the details of such Audit Qualifications.
In addressing the Audit Qualifications, the board of directors of the Company (the
"Board") had made its best efforts in addressing the requests made by the auditors. The
Company had actively chased for repayment from the relevant debtors/suppliers, and
requested for them to provide repayment undertakings and schedules. The Company had also
duly communicated the auditor's requests to the relevant debtors/suppliers in relation to -1-
conducting site visit and providing supporting documents for recoverability of the
receivables relating to the Audit Qualifications (the "Receivables"), however these requests
were declined.
In light of the above, the Company is currently considering and/or has taken the following
measures to resolve the Audit Qualifications:
1. the Company has engaged a legal adviser in the PRC for the purpose of commencing legal proceedings against the relevant debtors/suppliers in the PRC to recover the Receivables;
2. the Company is actively negotiating with various independent third parties about the possibility of selling the Receivables to them; and
3. subject to the view of the Company's auditor, the Company may consider to write off the Receivables in the approximate sum of RMB555 million.
The Company's audit committee has reviewed the management's position and is satisfied
with the abovementioned measures in addressing the Audit Qualifications.
Source: Hong Kong Exchanges & Clearing

(END) Dow Jones Newswires

August 12, 2020 06:30 ET (10:30 GMT)