Wu Changjiang moved to fill a NVC 285 million yuan provision

Apple Daily News has experienced shareholder disputes, NVC founder Wu Changjiang and misappropriation of company funds, has reached all announced resumption conditions, will resume trading today. However, according to the announcement by Wu Changjiang, 551 million yuan (RMB below) misappropriation of company funds, only up to 266 million yuan a chance to recover, that the company shall make provision for impairment of 285 million yuan additional events last year performance.

NVC began suspended in August 11th last year, reported 1.76 yuan before the suspension. The company said in the announcement, Wu Changjiang without the authorization of the board, entered into a 14 pledge and guarantee agreement with "Chinese NVC" name, a total cash 551 million yuan, and ultimately related to loan default. In the consolidated statements of the last year, the company recorded a decrease in the amount of "cash and cash equivalents" in the consolidated statements, which was classified as "prepayments, deposits and other receivables".

But the company pointed out that only 266 million yuan owed accounts receivable is considered recoverable, so will have to make provision for 285 million yuan, and classified as "impairment of other receivables company funds accounted for last year's performance. In addition, the company has a sum of about 54 million 130 thousand yuan of legal proceedings frozen.

NVC said the company the biggest potential credit risk is unable to recover the 266 million yuan of receivables, and if after losing about $60 million plus interest loss. However, the company stressed that the loss of money did not have a significant impact on the company's operations, because the company has a huge net current assets, sufficient capital to support operations.

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