General Announcement::Update on Xiamen Gongyuan Environmental Protection Technology Co., Ltd

Issuer & Securities

Issuer/ Manager
Stapled Security

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
01-Nov-2018 13:55:59
Announcement Sub Title
Update on Xiamen Gongyuan Environmental Protection Technology Co., Ltd
Announcement Reference
Submitted By (Co./ Ind. Name)
Remy Tan
Corp Affairs Manager
Effective Date and Time of the event
01/11/2018 17:00:00
Description (Please provide a detailed description of the event in the box below)
On 11 May 2018, the Board of Directors of China Environment Ltd. (the "Company" ) had announced that Xiamen Gongyuan Environmental Protection Technology Co., Ltd ( "XMGY" ) were uncooperative in providing accounting records and the XMGY company seals. Since then, the management in Singapore had tried contacting the management of XMGY to persuade them to cooperate with the Company's instructions. However, the attempts remained unsuccessful.

Recently, the Company has been informed by a business partner that XMGY had formed a liquidation committee. The Company was not informed by XMGY Legal Representative Wu Jida on this and hence sought clarifications on this matter. The legal representative of XMGY hence represented to Singapore management that to date only a liquidation committee has been formed, XMGY has not commenced liquidation due to outstanding tax liabilities and financial inability to engage a liquidator. The XMGY management has represented to Singapore management that they will hand over accounting records once their unpaid salaries, compensation and claims amounting to RMB649,000 are paid.

XMGY which was incorporated by the previous management of the Company has not commenced its intended commercial operations to manufacture and sell the trans-critical carbon dioxide heat pump system and based on unaudited accounts it is in net liabilities position as at FY2016.

The Company will continue to remind XMGY the seriousness of the matter and persuade XMGY to cooperate fully with the Company instructions. The Company will keep shareholders updated when there are material developments on this matter