This announcement is made by the board (the “Board”) of directors (the “Directors”) of Xinyi Glass Holdings Limited (the “Company” which together with its subsidiaries, collectively, the “Group”) in response to a report (the “Report”) circulated by GMT Research on 26 June 2019. The Report, with the title of “Faking Cash 2”, contains incorrect and misleading assertions and alleges that the Group bears “fraud-like traits” and that the profit of the Group cannot be verified.
A copy of the Report has been provided to the Directors, and all members of the Board vigorously deny the conclusions in the Report. The Group will not entertain the baseless accusations in the Report. The Directors wish to emphasise that its sales to customers in more than 130 countries and territories and available banking facilities generate sufficient financial resources for the business operations of the Group outside the People’s Republic China (the “PRC”) (which for the purpose of this announcement does not include Hong Kong). Unlike companies with business operations primarily in the PRC as referred to in the Report, the Group would not need to remit any significant amount of cash outside the PRC for the purpose of funding its business operation in Hong Kong and paying interim and final dividends to the shareholders of the Company.
The Group’s audited financial statements are prepared in strict compliance with the applicable Hong Kong Financial Reporting Standards.
The Directors consider that the contents and the title of the Report are misleading.Information presented in the Report is not only incorrect, it is also based on erroneous models or unsubstantiated information from which unfounded conclusions are made. The Company completely disagrees with and rejects the conclusions in the Report and the implication that there has been any possible misconduct on the part of the Company. The profit of the Group has been confirmed in the audited financial statements of the Group.
Shareholders and prospective investors of the Company should exercise extreme caution in relation to the contents of the Report.
Chairman
Hong Kong,26 June 2019
As of the date of this announcement, the executive directors of Xinyi Glass are Dr. LEE Yin Yee, B.B.S.,Mr. TUNG Ching Bor, Mr. TUNG Ching Sai and Mr. LEE Shing Kan, the non-executive directors of Xinyi Glass are Mr. NG Ngan Ho, Mr. LI Ching Wai, Mr. SZE Nang Sze and Mr. LI Ching Leung, and the independent non-executive directors of Xinyi Glass are Mr. LAM Kwong Siu, S.B.S., Mr. WONG Chat Chor Samuel, Mr. WONG Ying Wai, G.B.S., JP., Mr. TRAN Chuen Wah, John and Mr. TAM Wai Hung, David.
