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responsibility for the contents of this announcement, make no representation as to its accuracy or completeness
and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the
whole or any part of the contents of this announcement.
Allegation: The tax confirmation obtained for Jinzhou DPF-TH does not match the
number of the Deloitte-audited AIC filings.
In the 2012 PRC GAAP cash flow statements of Jinzhou DPF-TH (
): (i) VAT payments are classified under the heading of Cash Paid for Purchase of Goods
and Services , (being RMB257,258,369.52 and
419,867,772.23 for VAT in 2011 and 2012, respectively), and (ii) income tax payments
(being RMB201,000,000.00 and RMB361,000,000.00 in 2011 and 2012, respectively) and
payments of other local taxes are classified under the heading of Taxes Paid (
).
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The Company submits, and has confirmed with Deloitte, that the above mentioned
presentation in the 2012 PRC GAAP financial statements of Jinzhou DPF-TH did not affect
any financial information included in the Prospectus and the Accountants Report prepared
by Deloitte as included in the Prospectus.
Allegation on "rounded number" in the tax confirmation issued by the local tax bureau of
Jinzhou.
The Company confirms the numbers in the tax confirmation are not "rounded numbers" as
alleged in the Letter, but are the exact amounts the Company paid to the relevant authorities
as shown on the relevant tax receipts and bank statements. Copies of these have been made
available for inspection by registered shareholders of the Company.
PRC enterprises are required to pay income tax no later than 15 days after each quarter or
month based on the estimated income for the preceding periods. To avoid any shortfall in tax
payment and in line with the local practice, Jinzhou DPF-TH made the payments of the
estimated income tax in millions. The PRC tax authorities will only confirm the exact income
tax payable for the preceding year before 31 May of each year. Any excessive payment, if
applicable, will be retained by the relevant tax authority in its calculation of income tax
payable for the next period.
Furthermore, the Company emphasizes that there is nothing new in the Letter. In essence,
the Letter is re-stating the author's groundless allegations that the tax confirmations from
the relevant tax authorities in the PRC have been obtained through bribes or have been
fabricated.
As stated in the Announcements and in addition to the tax confirmations referred to above,
the Company has also obtained and retained tax receipts and bank statement copies
showing the income tax and VAT payments made. Copies of these records are available
for inspection by registered shareholders of the Company. The Letter does not purport to
challenge or cast doubt on the validity of these receipts and bank statements. In fact, the
Letter fails to mention and completely ignores these records.
Conclusion
The Company reiterates that the allegations in the Letter are false, groundless, selfcontradictory, unreliable, misleading and malicious as in the earlier Reports. The Company
urges its shareholders and potential investors to only rely on information in the Prospectus,
the Announcement or otherwise officially disseminated by the Company. The Company
reserves all rights to take legal action for damages or other relief against such entity and/or
associated individuals responsible for such defamatory acts.
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Shareholders of the Company and potential investors are advised to exercise caution
when dealing in the Shares of the Company.
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