China CDM Exchange Centre Limited
Chairman's Statement
2008 is not an ordinary year for everyone. An unprecedented crisis stormed the
world beyond anyone's expectation and unfortunately this is probably not the
end of the story, not even the beginning of the end. At present, the global
economy is trapped in a gloomy atmosphere waiting for recovery.
However, I, as Chairman of China CDM Exchange Centre Limited, confidently
announce that our business has not been influenced by such a crisis benefiting
from CDM's sector specialty and our successful business model. Instead, we
still have made significant progress in CDM projects development and got great
profits, which further established our leader role in China's CDM market.
Further on, in the second half of 2008, our company has carried out some
strategic investments in energy-related fields, which strengthened company's
operating power and led the company to a diversity-oriented development arena.
Hereupon, I am pleased to present the results for financial year ending Dec.
31, 2008.
1. In the year 2008, the company made significant profits from CDM project
development. At the end of 2008, the company had total assets of *
572,002,796.97 (equal to £58,307,539.88). The revenue reached *
75,026,822.30 (equal to £6,152,059.16), increasing 56% comparing with 2007.
And the net profit is *56,056,054.35 (equal to £4,596,491.66) and the
company had no bank debts by the end of 2008.
2. Partners Relationship
Based upon good commercial credit, the company has established healthy
cooperative relationship with more and more companies at home and abroad.
Especially the company has established and maintained consolidated cooperative
relationship with five largest-scale electricity companies in China and many
famous electricity companies in Japan including Tokyo Electric Power, Kansai
Electric Power, Tohoku Electric Power, Chubu Electric Power, etc.
3. Project Progress
The year 2008, we had a good performance in developing CDM projects. We got
more high-quality resources almost covering any possible CDM project fields
accepted by UN, including Hydropower, Wind Power and Biomass Energy in New
Energy fields, Iron & Steel Industries, and the Petrochemical and LNG projects.
4. Human Resource and Management Regulation.
To keep pace with the company's development, we enrolled more and more
excellent employees who injected fresh power into the company. In such a way,
the human resource is enriched and the team spirit is further strengthened. And
the company is still in effort to optimize the management regulation so as to
provide better working environment for all the staff.
Hereupon, I extend my sincere thanks to my colleagues and every cooperative
partner. Wish us great success in 2009! Wish everyone a good health!
Outlook
In 2009, the company will develop business focusing on the following aspects:
1. To further establish the company's leader role in CDM industry at home and
abroad and maintain the company's exclusive advantages in new energy
fields. Based on pushing forward the projects available, the company will
actively develop new projects and maintain close relationship with the
project owner so as to make the projects run effectively and efficiently.
2. Based on the clear awareness for the company development, the company will
actively face to International Financial Crisis through polishing
professional skills and mastering international financial policy changes
all the time.
3. To extend new business fields and optimize the current business model by
launching ENE. To be specific, based on current "Consultancy" + "Buyer"
business model, we can maximize our profits by acting as the buyer
independently. We also invest in new energy projects focusing on clean
energy project development including but not limited to Wind Power projects
and Hydropower projects.
4. To continue to develop CDM projects and attempt to procure great success.
5. To strengthen management regulation, improve company's management level and
enroll high-quality talents.
Kang Zheng
Chairman
The directors present their report and financial statements for the year ended
31 December 2008.
Principal activities
In the year 2008, the company achieved material progress in developing new
business domain and resolutely made some strategic investments focusing on
Clean Energy and Renewable Energy fields (including but not limited to
hydropower projects and wind power projects). And the specific investment
status is as follows:
a. To develop the carbon credit market in Clean Energy and Renewable Energy
fields (including but not limited to hydropower projects and wind power
projects) and facilitate to invest into the clean energy and renewable
energy projects in china, the company launched a carbon fund----Europe New
Energy Investment Capital Ltd. ("ENE").
ENE is a carbon fund dedicating itself to improve the warm global climate,
launched by China CDM Exchange Centre Limited, which invests directly in the
carbon credit transaction projects in China and other developing countries in
Asia. CCEC can get the prior carbon emission rights and sell them to the buyer
who entrusts CCEC to find projects and in such a way CCEC make its profits.
b) In order to develop the Clean Energy Projects and Renewable Energy Projects,
the Company had a equity investment in China Hydropower Group Limited ("CHPG").
It mainly devotes itself to the Hydropower and Wind Power development and
investing funds to develop the New Energy and Renewable Energy projects. It
will make full use of its resource advantages in hydropower field to develop
hydropower projects and other renewable energy projects in Sichuan, Yunnan,
Guizhou, Gansu, Tibet, Qinghai and Xinjiang Uyghur Autonomous Region, etc.
Results and dividends
The profit for the year after tax was £4,596,491.66
The directors do not recommend a payment of dividend.
Directors
The following directors have held office since 3 October, 2006
Executive Directors
Zheng Kang
Qingmei Liu
Sha Ying
Directors' responsibilities
The directors are responsible for preparing the financial statements in
accordance with applicable law and United Kingdom Generally Accepted Accounting
Practice.
Jersey company law requires the Directors to prepare the financial statements
each year, which give a true and fair view of the state of the affairs of the
company and the profit and loss for that period. In preparing those financial
statements, the Directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgments and estimates that are reasonable and prudent;
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the company will continue in business; and
* state whether applicable accounting standards have been followed, subject
to any material departures disclosed and explained in the financial
statements.
The directors are responsible for keeping proper accounting records which
disclose with reasonable accuracy at any time the financial position of the
company, and to enable them to that the financial statements comply with the
Companies (Jersey) Law, 1991. They are also responsible for safeguarding the
assets of the company and hence for taking reasonable steps for the prevention
and detection of fraud, error, and non-compliance with law and regulations.
Auditors
A resolution will be proposed at the annual general meeting for the
re-appointment of Nexia Zhonglei Certified Public Accountants Co., Ltd. as
auditors for the forthcoming year.
On behalf of the board
Melody Zhu
Secretary
26 March, 2009
Income Statement
As At 31 DECEMBER 2008
2008
RMB GBP
Revenue 75,026,822.30 6,152,059.16
Cost of sales (9,750,526.33) (799,524.93)
Gross profit 65,276,295.97 5,352,534.23
Selling expenses (2,551,678.76) (209,232.89)
Administrative expenses (3,521,522.97) (288,758.30)
Profit from operations 59,203,094.24 4,854,543.04
Interest expense (3,147,039.89) (258,051.39)
Profit before income tax 56,056,054.35 4,596,491.66
Net profit 56,056,054.35 4,596,491.66
The accompanying notes form an integral part of these financial statements.
Average exchange rate*(2008)RMB/GBP: 12.1954
Balance Sheet
As At 31 DECEMBER 2008
2008
RMB GBP
Non-current assets
Property Plant and Equipment 556,444.37 56,721.58
Long term investment 425,642,500.00 43,388,191.76
Total non-current assets 426,198,944.37 43,444,913.34
Current Assets
Trade receivable and other receivables 244,782.98 24,952.14
Cash and cash equivalents 8,759,069.62 892,862.42
Financial assets at fair value through 136,800,000.00 13,944,811.98
profit or loss
Total current assets 145,803,852.60 14,862,626.54
Total assets 572,002,796.97 58,307,539.88
Current Liabilities
Trade payable and other payables 4,211,385.45 429,290.78
Total current liabilities 4,211,385.45 429,290.78
Total liabilities 4,211,385.45 429,290.78
Capital and reserves
Share capital 221,999,000.00 30,423,074.26
Capital surplus 240,400,000.00 16,487,548.61
Surplus reserve 49,336,357.17 3,383,675.49
Retained earnings 56,056,054.35 4,596,491.66
Foreign currency translation - 2,987,459.08
Total shareholder's equity 567,791,411.52 57,878,249.10
Total liabilities and shareholder's 572,002,796.97 58,307,539.88
equity
The accompanying notes form an integral part of these financial statements.
Exchange rate (2008)RMB/GBP: 9.8101 ;( 2007) RMB/GBP: 14.5807
Cash Flow Statement
For the year ended 31 DECEMBER 2008
2008
RMB GBP
Cash flows from operating activities
Cash generated from operations 64,320,353.55 5,274,148.74
Net cash generated from operating 64,320,353.55 5,274,148.74
activities
Cash flows from investing activities
Cash pay for investment (322,042,500.00) (26,406,882.92)
Purchases of fixed assets - -
Net cash used in investing activities (322,042,500.00) (26,406,882.92)
Cash flows from financing activities
Proceeds from issuance of ordinary 142,659,960.11 11,697,850.02
shares
Net cash used in financing activities 142,659,960.11 11,697,850.02
Net (decrease)/increase in cash and bank (115,062,186.34) (9,434,884.16)
balances
Cash and bank balances at beginning of 123,821,255.96 10,153,111.50
year
Cash and bank balances at end of year 8,759,069.62 718,227.34
The accompanying notes form an integral part of these financial statements.
Average exchange rate (2008)RMB/GBP: 12.1954
China CDM Exchange Centre Limited
Notes to the financial statements
FOR THE YEAR ENDED 31 DECEMBER 2008
END