Hong Kong, SAR Peoples’ Republic of China, 13 February, 2014
Euro Asia Premier Real Estate Company Limited (ISIN: VGG3223A1057) today published its full audited financial statements for the financial year 2012 according to IFRS.
- Total revenues for the 12 months period ending December 31, 2012 amounted to RMB¥ 4.620 million (approx. € 559,482), as compared to the same period in 2011 of RMB¥ 291.980 million (approx. € 37.37 million)
- Gross profit for the period under review was RMB¥ 900,000 (€ 108,990). In 2011, the company’s gross profit was RMB¥ 105.086 million (€ 13.46 million).
- Net loss for the year was RMB¥ 14.920 million (approx. € 1.806 million), as opposed to a net profit for FY 2011 of RMB¥ 34.565 million (€ 4.43 million).
- Attention is directed to footnote 22 regarding a material event subsequent to the reporting period. Among other issues, a proposed transaction is to be approved at the shareholders meeting to be held on March 17, 2014.
Update of operations
There were no material sales in 2012 and the loss for the period is within expectation. Abesides from developments rights granted to us, the Company has disposed all of it’s remaining assets in 2013 in the City of Weifang, Shandong, and embarked on developments and acquisitions in other regions. By the disposition of said assets, we intend to review for additional business development opportunities in Weifang if and when opportunities present themselves and match the correct profile.
Board and management of Euro Asia apologize for the delayed publishing of the financial statements for fiscal year 2012. However, the delay was caused by material changes in the structure of the company, that involved a complex transaction between the Company and its former joint venture partner SNI, in context with agreements concerning the purchase of a 100% equity interest in Weihai Ming Cheung Investment Consulting Ltd (“WMC “). Because of the size of the deal and the importance of the transaction for the future development of Euro Asia, the Company’s auditor’s could only submit an opinion after the signing of the agreement, which was achieved in January 2014. Accordingly, the financial statements have been issued with an unqualified audit opinion on February 13, 2014.
Patrick Chan, CEO of Euro Asia, stated, “It is very regrettable that Mr. Sun Xiyi is no longer on our board of directors. However, we have developed excellent contacts in Weifang and the region. We are in a healthy financial position and beside the Weihai project, we have the ability and intention to aggressively pursue other projects in Weifang and other areas.”
Subsequent event note in the financial statements – Purchase of WMC
On June 6, 2013 the Company entered into an agreement and in January of 2014 entered into an amended agreement to purchase 100% equity interest in Weihai Ming Cheung Investment Consulting Ltd (“WMC “) for RMB¥ 400 million (€ 48 million). The acquisition will be financed through the disposal of the Company’s remaining projects in Weifang, Shandong to SNI, an affiliate, for RMB¥ 150 million (€ 18 million) as announced in our August 14, 2013 news release. WMC is to develop a mixed residential, commercial and retail complex of approx 163,397m² in Weihai, Shandong, a coastal resort city. The projected gross revenue for the project is approximately RMB¥ 1.7 billion (€ 206 million). The feasibility report is available for review at the Company premises at 27 Floor, 28 Queens Road East, Wanchai, Hong Kong prior to the shareholders meeting to approve the transaction.
The AGM to approve the financial statements and the purchase of assets is to be held on March 17, 2014 at 10.00 am at the offices of Harneys, the company’s legal counsel located at #3601-3605 , Two Exchange Square, 8 Connaught Place, Central Hong Kong.
The details of the financials information, resolutions and agenda of the AGM are posted on the Company’s website at www.eu-asia.net along with eligibility to attend meeting.
RMB¥ 1 = € 0.1211
Schwarz Financial Communication
Tel: +49 611 1745 398 11
About Euro Asia
Euro Asia is a BVI registered company, active in demand driven development of real estate projects in the Shandong area of the People’s Republic of China. The Company operates locally through its subsidiaries. By utilizing its strong local network to banks, political decision makers, land owners and other developers, the Company intends to grow its position in the Shandong Province prior to moving into other regions. For more information, please visit www.eu-asia.net