UTILISATION OF TAX INCENTIVE
The Board of Directors of Sunvic Chemical Holdings Limited (the “Company”) is
pleased to announce that the Company’s wholly-owned subsidiary, Jiangsu Jurong
Chemical Co., Ltd. (“JJC”) (collectively, the “Group”), has obtained approval from the
local tax authority to fully utilise its tax incentive of approximately RMB123.6 million
(the “Tax Incentive”), which was granted to JJC in 2007 and 2008. This tax
incentive was granted pursuant to the "Notice of the Administrative Methods of
Purchase of Domestic Equipment Investment by Foreign Invested Enterprises to
Offset Enterprise Income Tax" promulgated by the State Administration of Taxation in
the People’s Republic of China (“PRC”).
Out of the RMB123.6 million, RMB11.5 million was refunded to JJC in the financial
year ended 31 December 2008 (“FY2008”).
A further RMB19.3 million was refunded to JJC by the tax authority in end 2010 and
will be reflected accordingly in the financial statements for the financial year ended
31 December 2010. The balance of approximately RMB92.8 million will be refunded
to JJC within the first half of 2011 which is expected to have a positive impact on the
profit of the Group for the current financial year ending 31 December 2011.
None of the Directors or substantial shareholders of the Company has any interest,
direct or indirect (other than through their shareholdings in the Company), in the
above-mentioned matter.
