BEIJING ENERGY INTERNATIONAL HOLDING CO., LTD. The board of directors of United Photovoltaics Group Limited announced that based on a preliminary review on the unaudited consolidated management accounts of the group for the year ended 31 December 2015, the group is expected to record the sales of electricity and tariff adjustment in an amount of approximately RMB 631 million, an increase by approximately 66% as compared to those for the corresponding period in 2014; the EBITDA of the group is expected to be more than RMB 470 million, an increase by more than 70% as compared to that for the corresponding period in 2014; and the net profit for the group is expected to increase by at least 30% (which might be significantly higher) as compared to that for the corresponding period in 2014 due to, and pending finalisation of, the fair value gains from certain derivative financial instruments, bargain purchase arising from the business combinations and loss from discontinued operation in 2014 was no longer applicable during the Year. However, the results are subject to the finalisation of valuation results and completion of certain auditing procedures. EBITDA is used by the management for monitoring business performance of the Group.
The improvement in sales of electricity and tariff adjustment and EBITDA of the Group for the year was mainly attributable to the increase in the volume of electricity generated by the solar power plants. The increase in the expected net profit of the group was mainly attributable to fair value gains from re-measurement of certain derivative financial instruments, bargain purchase arising from business combinations, which were based on preliminary valuation results from an independent valuer, and the loss from discontinued operations in 2014 amounted to approximately RMB 238 million no longer applicable for the Year; notwithstanding the finance costs have increased during the Year as compared to the corresponding period in 2014 as a result of the completion of various long-term financings (including convertible bonds, bank borrowings, medium-term note and finance leasing arrangements) for the development and operation of the solar power plant business.
