ANHUI TIANDA OIL : THE COMPANY HAS FAILED TO QUALIFY FOR CONTINUE ENTITLEMENT TO THE PREFERENTIAL ENTERPRISE INCOME TAX RATE OF 15% FOR YEAR 2010
06/03/2011| 09:10pm US/Eastern
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.Anhui Tianda Oil Pipe Company Limited
(a joint stock company incorporated in the People’s Republic of China with limited liability)(Stock Code: 839)ANNOUNCEMENT
The Board hereby announce that the Company has failed to qualify for continue entitlement to the preferential Enterprise Income Tax rate of 15% for year 2010.Shareholder and investors should exercise caution when dealing in the H shares of theCompany.
This announcement is made pursuant to Rule 13.09 of Listing Rules.Reference is made to an announcement dated 3 March 2010 (the “2010 Announcement”) of Anhui Tianda Oil Pipe Company Limited (the “Company”). Unless otherwise indicated, capitalized terms used herein shall have the same meaning as defined in the 2010 Announcement. The Company has obtained the Certificate of High and New Technology Enterprise and is entitled to a preferential Enterprise Income Tax rate at 15% complying with relevant provisions for the three years ending 31 December 2011.During the process of settling enterprise income tax for year 2010 recently, the tax agency engaged by the Company has conducted an audit for qualifying the continue entitlement to enterprise income tax relief for high and new technology enterprises of the Company for Year2010. They considered that the staff structure of the Company at the end of year 2010 failed to fulfil the requirement of the Certification Standard for High and New Technology Enterprise regarding the income tax benefits that those enterprises entitled that year, which stipulates that the technicians who possess qualification of post-graduate should account for more than30% of the total number of staff of the enterprise in the relevant year, in which the number of staff in the research and development department should be over 10% of the total number of staff of the enterprise in the relevant year. As a result, the Company had to submit a tax return for the Enterprise Income Tax rate of 25% for year 2010. As the income tax expenses for Year 2010 in the Consolidated Statement of Comprehensive Income of the Company has been underprovided by approximately RMB13,240,000 after the change in tax rate, the under provided amount of income tax will be charged as current year expense, which may affect the results of the Company for year 2011.– 1 –Such situation is mainly due to the production lines of high-grade oil well pipe of the Company which have commenced production in year 2010, and the number of staff which has significant increased and the change of personnel which has occurred at the end of year 2010. It is expected that the change of Enterprise Income Tax rate for the year 2011 will not have significant impact on the production and operations of the Company.For the sake of prudence, the Company will provide for the enterprise income tax in year 2011 at a rate of 25%. The effective and applicable income tax rate for the Company in year 2011 will be determined according to the final settlement of income tax at the end of the year.Shareholders and investors should exercise caution when dealing in the H shares of theCompany.
By order of the BoardAnhui Tianda Oil Pipe Company LimitedYe Shi Qu
Anhui, the PRC, 3 June 2011
As at the date of this announcement, the Board comprises three executive Directors: Mr. Ye Shi Qu, Mr. Zhang Hu Ming and Ms. Fu Jun; two non-executive Directors: Mr. Delhon-Bugard Hervé and Mr. Liu Peng; and three independent non-executive Directors: Mr. Wu Chang Qi, Mr. Zhao Bin and Ms. Yan Lan.
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