Chinlink Announced Positive Profit Alert

[2 November 2015 - Hong Kong] Chinlink International Holdings Limited (“Chinlink”, HKSE Stock Code: 0997) its subsidiaries (collectively the “Group”) is pleased to announce that, based on the preliminary review of the unaudited management accounts of the Group f the six months ended 30 September 2015 (the “Period”), the Group is expected to recd a consolidated total comprehensive gain f the Period as compared to the consolidated total comprehensive loss f the six months ended 30 September 2014. The expected gain was primarily attributable to the acquisition of 100% of the equity interests of E-Innovation Limited (“E-Innovation”), completed on 31 August 2015. The fair value of the consolidated net assets of E-Innovation its subsidiaries is higher than the consideration paid by the Group f the Acquisition, thus deriving a gain on bargain purchase (negative goodwill). E-Innovation indirectly holds 73.375% equity interest of Xi’an Tang Rong Real Estate Limited (“Tang Rong”) Xi’an Da Ming Gong Ba Qiao Furniture Fixture Limited (“Ba Qiao”) respectively. Tang Rong is the owner developer of a plot of l of 58,698 square metres, together with a commercial complex (“Commercial Complex”, collectively, the “Property”). This Property is located in the eastern part of Xi’an City is known as the 東大明宮建材家居中心, while Ba Qiao is the operat of the Property. Mr. Siu Wai Yip, utive Direct of Chinlink, said, “The Group has been actively developing our financial business by providing diversified financial products, aiming at offering tail-made one-stop financing solutions to our SME clients, as an answer to the “inclusive financing system” of the PRC’s strategic development policy. We are constantly seeking to acquire high-quality projects to broaden our business base which will create synergy to the Group’s overall business. Leveraging on the Group’s financial strength, we have successfully acquired the Property at a good price. Located in one of the prime areas in Xi’an City, the capital city of Shaanxi Province, the Property can contribute stable rental management fees to the Group’s revenue. The Group’s strategic acquisition not only can help increase our asset value broaden the revenue source, but also provides a captive customer base to the Group’s financial businesses. Apart from optimizing our existing financial services, such as financing guarantee supply-chain financing, etc., the Group will also officially launch the finance lease business in early next year, introduce other high growth potential financial business, such as microfinance, in the near future. The Group expects to increase our competitiveness through the continuous improvement in our financial businesses, whilst strive to obtain fruitful results to reward our shareholders f their continued suppt.”