Due to DebtZHEJIANG GLASS CO. LTD.

Wang Moods

ZHEJIANG GLASS (739 )

Company/Securities Name:

Zhejiang Glass Co. Ltd. - H Shares

Principal Activities: Manufacturing and selling of glass

products and soda ash products. 

Chairman: Feng Guangcheng 

Principal Office:Yangxunqiao TownshipShaoxing CountyZhejiang ProvincePRC 

Place Incorporated: PRC  

Listing Category: Primary Listing  

Industry Classification:

Industrial Goods - Industrial Goods (HSIC*)   

Basic Information

Basic InformationRegistrar: Computershare Hong Kong

Investor Services Ltd. Listing Date : 10/12/2001 Trading Currency: HKD Authorized Shares: N/A  Issued Shares: (Click here for important notes)

384,999,000 (as at 31/1/2012)  

Par Value: RMB 1.0000  Board Lot: 1000 Market Capitalization: HKD 954,797,520  

The first H-listed private company in mainlandN/A means Not Available

This amount hasn’t changed since 05/02/2009.

Monthly Return of Equity Issuer on Movements in Securities , is the only file of being updated.

1RMB=1.2314HKD

1HKD=0.8121RMB

Financial DataFinancial Year End Date: 31/12/2008 

Net Asset Value: RMB 2,563,013,000 Net Profit (Loss): RMB 174,184,000 Earnings per Share: RMB 0.2296 Last Updated: 22/2/2012  

Basic Information

There is no 2009 or 2010 Annul Report, the latest financial information we can

access is the 2009 Interim Report.

Late information is no information.

1RMB=1.2314HKD

1HKD=0.8121RMB

Interim VS Annual Report • Contents

• Unaudited/ Audited

33 pages 101 pages

Corporate information Consolidated income statement Consolidated statement of comprehensive incomeConsolidated statement of financial positionConsolidated statement of changes in equityConsolidated statement of cash flowsNotes to the condensed consolidated financial statementsManagement discussion and analysisOther information

Corporate Information Financial Summary Chairman’s Statement Management Discussion and AnalysisCorporate GovernanceDirectors, Supervisors and Senior Management Report of the DirectorsReport of the Supervisory CommitteeAuditor’s Report Consolidated Income StatementConsolidated Balance SheetBalance SheetConsolidated Statement of Changes in EquityConsolidated Cash Flow StatementNotes to the Consolidated Financial Statements

What Can Get from 2008 Annual Report

• Revenue 2,756,200,000 18.7%

• Impairments• Challenges:

Financial Crisis 、Market 、 Raw Material Cost

It looks OK

• EBITDA 678,200,000 -15.4%• Cash 98M/593M• Bank Loan

4.9B/3.2B• L/A 62%/54%• 28/05/2008 382,000,000 HKD• Uncertain of the

new BusinessIt’s indeed

Not

Something We Cannot Ignore

• Government grants-Other gains( Net )

• 2008-25,080 2007-498 （ RMB’000 ）• Notes: Cash subsidy income relates

to grants made by the local government to the Group in order to support the expansion of the Group and to compensate the Group’s certain expenses incurred.What is the standard of application and

disclosure of government grants?

Something We Cannot Ignore

• Connected Transactions• Only one, so-called Financial

Assistance RMB50,000,000 has been settled.

• …The independent non-executive directors of the Company recommended, among others, that compliance by officers (including directors) with the Company’s internal control system should be improved…

What are the differences between private and state company? How to view the right of independent non-

executive directors?

Something We Cannot Ignore

• Going concern assumption• …As at 31 December 2008, the Group

had net current liabilities of approximately RMB2,478 million. This condition indicates the existence of a material uncertainty, which may cause significant doubt about the Group’s ability to continue as a going concern…

What is our reasonable reaction?

Something We Cannot Ignore

• ANNOUNCEMENT DELAY IN PUBLICATION OF THE 2010 ANNUAL RESULTS AND DESPATCH OF THE 2010 ANNUAL REPORTS……15/04/2011 06/09/2010…Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement…What is the status of Zhejiang Grass

Co. Ltd ? What roles do the HKE and CSRC play?

Should the Announcement be regarded as ethical treatment towards

the ordinary shareholders?

News 资金链断裂• 到 2009 年 6 月 30 日，未偿还银行贷款为

53.1 亿元，其中约 26.9 亿元须于 1 年内偿还。

• 而 2007 年之前，光宇集团和浙江玻璃就因为银行给企业信用亮红灯，开始借高利贷偿还银行贷款了。

• 多家绍兴大型企业一时让绍兴风声鹤唳，各大银行、企业债权人纷纷赶往绍兴收贷。浙江玻璃也成为银行追债的对象。随后，社会借款人闻风而起，让浙江玻璃连“拆东墙补西墙”的机会也没有了。

News 高负债的形成• “ 浙江玻璃上市以后银行就开始送上门来放贷了，

一下子就给了浙江玻璃 26 亿元的贷款。”• 根据索偿文件要求，浙江玻璃旗下青海碱业的一

部分股份被法院冻结，直至案件解决为止。该贷款从未入账，没有在 2008 年度业绩内作出损失拨备，也没有按照上市规则进行及时披露。据此，以及“偿债及流动资本前景模糊不清”，有香港券商曾于 2009 年 12 月 15 日建议沽售该股。

News 政府再成“ CEO”• 2009 年 2 月 27 日， 绍兴县政府亦向浙江

玻璃伸出了援手。浙江省政府专题会议纪要显示：受 X X X 副省长委托， 省政府副秘书长 X X X 主持召开了会议，专题研究浙江玻璃资金链安全保障问题。当时参会方涉及绍兴县政府和浙江省金融办，多家银行，以及浙江玻璃的有关负责人。

• 会议决定：“各有关银行作为主要债权人，要充分认识到帮扶企业是各金融机构的重要职责，做到不减贷、不收贷、快转贷，保持现有信贷额度不变。要给予 2-3 个月的过渡期。

• “ 如果没有政府的纪要，浙江玻璃早就死了。

News 债务仍是重组最大难题• 2010 年 5 月 3 日，浙江玻璃于上午 9 时

30 分起在香港联交所主板暂停交易，以待刊出浙江玻璃及其附属公司的年度业绩报告。浙江玻璃同时表示，“该业绩公告的刊发时间仍须待决定”。

• 同月，浙江玻璃董事长冯光成的女儿——浙江玻璃总经理冯鲁文几次赴京，联系中国建筑材料集团有限公司（下称“中国建材集团”）商谈转让浙江玻璃事宜。至今，中国建材集团已在浙江玻璃开展资产评估、尽职调查等工作。

News 是死是活？• 截至目前，处于停牌状态的浙江玻璃仍没有新的公告告知股民。香港联交所北京办事处的工作人员在接受《中国经济周刊》采访时，对浙江玻璃的停牌原因也没有给出答案，并表示何时复牌并不知情。

• 浙江玻璃迄今为止仍在正常生产。

• The End.• But how about the Zhejiang Glass Co . Ltd?