China Culiangwang Beverages : Announcements and Notices - Clarification Announcement in Relation to Interim Results for the Six Months Ended 31 October 2015

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CHINA CULIANGWANG BEVERAGES HOLDINGS LIMITED

中國粗糧王飲品控股有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 904)

CLARIFICATION ANNOUNCEMENT IN RELATION TO INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2015

Reference is made to the announcement relating to the unaudited condensed consolidated results of China Culiangwang Beverages Holdings Limited ("Company") and its subsidiaries ("Group") for the six months ended 31 October 2015 ("Interim Results Announcement") published by the Company on 18 December 2015. Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as those defined in the Interim Results Announcement.

The board ("Board") of directors ("Directors") of the Company wishes to clarify that after the publication of the Interim Results Announcement, re-classifications have been made to the financial statements due to an inadvertent error made on the classification of cash deposited with a securities firm.

The re-classifications have no impact on the condensed consolidated statement of profit or loss and other comprehensive income of the Company for the six months ended 31 October 2015.

ADJUSTMENT TO THE CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The major impact of the re-classifications on the condensed consolidated statement of financial position of the Company as at 31 October 2015 is a decrease in available-for- sale financial assets by RMB44,968,000 from RMB132,777,000 to RMB87,809,000 and an increase in cash and cash equivalents by RMB44,968,000 from RMB117,706,000 to RMB162,674,000.

Set out below is a reconciliation of the condensed consolidated statement of financial position of the Company as at 31 October 2015 before and after the adjustment:

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 October 2015

At At

31 October 31 October

2015 Adjustments 2015

RMB'000 RMB'000 RMB'000

(Unaudited) (Unaudited)

Before Adjusted

adjustment

Non-current assets

Fixed assets

- Property, plant and equipment	2,005,762	-	2,005,762
- Interest in leasehold land held for own use under operating leases	156,839	- 156,839
Long-term prepaid rentals	955,828	- 955,828
Available-for-sale financial assets	132,777	(44,968) 87,809
Pledged bank deposits	5,000	- 5,000
3,256,206	(44,968) 3,211,238
Current assets Inventories	13,104	- 13,104
Biological assets Current portion of long-term prepaid rentals	122,072 97,370	- 122,072 - 97,370
Trade and other receivables	39,697	- 39,697
Pledged bank deposits	250,388	- 250,388
Cash and cash equivalents	117,706	44,968 162,674
640,337	44,968 685,305
Assets classified as held for sale	2,021,335	- 2,021,335
2,661,672	44,968 2,706,640

At 31 October 2015 RMB'000 (Unaudited) Before adjustment	Adjustments RMB'000	At 31 October 2015 RMB'000 (Unaudited) Adjusted
Current liabilities Bank and other borrowings	619,890	-	619,890
Trade and other payables	228,770	-	228,770
Income tax payable	28,277	-	28,277
Other financial liabilities	36,303	-	36,303
Convertible bonds	559,846	-	559,846
Liabilities directly associated with assets	1,473,086	-	1,473,086
classified as held for sale	72,846	-	72,846
1,545,932	-	1,545,932
Net current assets	1,115,740	44,968	1,160,708
Total assets less current liabilities	4,371,946	-	4,371,946
Non-current liabilities Deferred tax liabilities	74,808	-	74,808
Bank and other borrowings	293,400	-	293,400
368,208	-	368,208
Net assets	4,003,738	-	4,003,738
Capital and reserves Share capital	492,850	-	492,850
Reserves	3,510,888	-	3,510,888

Total equity attributable to owners of the Company 4,003,738 - 4,003,738

As a result of the above adjustment, the Board would like to clarify that in the section headed "MANAGEMENT DISCUSSION AND ANALYSIS" in the Interim Results Announcement:

1. The first sentence of the 2nd paragraph in the sub-section headed "Securities Investments" on page 17 of the Interim Results Announcement shall be read as follows (with amendment emphasised and underlined):

   
   

   "As at 31 October 2015, the total fair value of the investment portfolio held by the Group was approximately RMB87.8 million (30 April 2015: RMB42.8 million)

   ...."

   
   

2. The second and third sentences of the 1st paragraph in the sub-section headed "Group's Liquidity, Financial Resources and Capital Structure" on page 19 of the Interim Results Announcement shall be read as follows (with amendment emphasised and underlined):

   
   

   "The Group had current assets of RMB2,706.6 million (30 April 2015: RMB2,055.3 million) and current liabilities of RMB1,545.9 million (30 April 2015: RMB1,522.8 million). The current ratio was 1.75 times (30 April 2015: 1.35 times)."

   
   

3. The first sentence of the 3rd paragraph in the sub-section headed "Issue of Notes" on page 20 of the Interim Results Announcement shall be read as follows (with amendment emphasised and underlined):

"As at 31 October 2015, the Group had pledged deposits as well as cash and cash equivalents of approximately RMB418.1 million (30 April 2015: RMB397.6 million)."

Save as disclosed in this announcement, there are no other changes to the Interim Results Announcement.

We sincerely apologise for any confusion and the inconvenience caused.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

China Culiangwang Beverages Holdings Limited Sun Shao Feng

Chairman

Hong Kong, 15 January 2016

As at the date of this announcement, the Board comprises two executive Directors, namely Mr. Sun Shao Feng (Chairman and Chief Executive Officer) and Mr. Chen Changgai; and four independent non-executive Directors, namely Mr. Hu Ji Rong, Mr. Wei Xiongwen, Mr. Zeng Shaoxiao and Ms. Yu Xiao Min.