China CDM Exchange Centre Limited

Final results for the year ended 31 December 2017

The Company operates within the framework of the Clean Development Mechanism (“CDM”) of the Kyoto Protocol, established under the auspices of the United Nations Framework Convention on Climate Change. The Protocol commits countries to reducing their emissions of Green House Gasses (“GHGs”) by pre-determined amounts or compensates for maintained or higher GHGs emissions via emissions trading.

Based upon the on-going CDM contracts and the new attempt in the China Certified Emission Reduction (“CCER”) Market in 2017, the Company gained the revenue of GBP £887,795.31 in 2017.

In 2017, with the efforts of all the employees and the support of the customers, our company made great progress in the carbon emission trading and its related projects and work, especially the electronic currency business promotion relating to carbon emissions. 

The Company gained revenue of GBP887 Thousand in the carbon emission trading market with the net profit of GBP34.8 Thousand. Although there is a decrease in the income in 2017, we believe it will be better with the trading volume increase in the carbon market of China.

According to the China Carbon Finance Research Report, China’s unified contractual carbon trading market will be organized and completed in 2020 at the national level. The annual transaction volume will amounts to RMB 100-120 billion and the new, huge and stable market will be formed in the future. No doubt will it bring great benefits to the company’s future market and we are looking forward to such a moment.

In addition, the company has also devoted itself to the electronic encrypt currency relating to carbon trading and made considerable progress and development. In 2017, the company increased investment on the electronic currency mining and it will make profits in 2018 with the completion and effective running of the large electronic currency mining construction.

Looking back on the past and looking forward to the future, I would like to thank once again all the staff and the investors who support us. Thank you! We hope that in the Chinese carbon trading market, we will make greater progress in the research and development of electronic encryption currencies.

Outlook for 2018

In 2018, the company will develop the business focusing on the following areas:

1. To maintain the current advantages in the global carbon market and Green Energy Market;
2. To extend the new business in the China Energy Markets and develop the computer system based upon Blockchain ;
3. To strengthen management regulation, improve company’s management level through OA system and enroll high-quality talents.

……………………………

Mr. Kang Zheng

Chairman

Enquiries:

China CDM Exchange Centre Limited [email protected]	+86 010 87246056
ISDX Advisor: Alfred Henry Corporate Finance Ltd www.alfredhenry.com Jon Isaacs/Nick Michaels	020 7251 3762

The Directors accept responsibility for this announcement.

CHINA CDM EXCHANGE CENTRE LIMITED

INCOME STATEMENTS

	Notes	1/1/2017-12/31/2017		1/1/2016-12/31/2016
		RMB	RMB	RMB	GBP
Revenue	3	7,771,405.00	887,795.31	8,032,301.64	898,146.26
Cost of sales		-5,955,794.28	-680,382.27	(6,348,484.85)	(709,867.26)
Gross profit		1,815,610.72	207,413.03	1,683,816.79	188,279.00
Selling expense
Administration expenses		-1,475,525.67	-168,562.15	(1,713,411.07)	(191,588.14)
Profit from operations	4	340,085.05	38,850.88	(29,594.28)	(3,309.14)
Foreign exchange gains		-34,759.23	-3,970.85	50,386.22	5,634.03
Profit before income tax		305,325.82	34,880.03	20,791.94	2,324.89

The accompanying notes form an integral part of these financial statements.       

Average exchange rate: (2017) RMB/GBP 8.7536; (2016) RMB/GBP 8.9432;

                                                                          CHINA CDM EXCHANGE CENTRE LIMITED

BALANCE SHEETS

	Note	12/31/2017		12/31/2016
		RMB	GBP	RMB	GBP
Non-current assets
Property Plant and Equipment	5	74,117.39	8,442.39	78,760.97	9,255.76
Long term investment	6	372,042,500.00	42,377,722.34	372,042,500.00	43,721,355.21
Intangible assets	7
Total non-current assets		372,116,617.39	42,386,164.73	372,121,260.97	43,730,610.97
Current Assets
Trade receivable	8	48,306,555.20	5,502,386.91	51,450,483.90	6,046,311.59
Other receivables
Cash and cash equivalents	9	23,086,558.05	2,629,688.13	19,632,659.95	2,307,173.24
Financial assets at fair value through profit or loss
Total current assets		71,393,113.25	8,132,075.05	71,083,143.85	8,353,484.83
Total assets		443,509,730.64	50,518,239.78	443,204,404.82	52,084,095.80
Current Liabilities
Other payables
Total current liabilities
Capital and Reserves
Share capital	10	221,999,000.00	15,020,515.41	221,999,000.00	15,020,515.41
Capital surplus		1,064,345.56	109,974.13	1,064,345.56	109,974.13
Public product of surplus		49,336,357.17	3,383,675.49	49,336,357.17	3,383,675.49
Undistributed profit		171,110,027.91	15,593,521.30	170,804,702.09	15,560,966.16
Foreign currency translation difference			16,410,553.45		18,008,964.61
Total shareholder’s equity		443,509,730.64	50,518,239.78	443,204,404.82	52,084,095.80
Total liabilities and shareholder’s equity		443,509,730.64	50,518,239.78	443,204,404.82	52,084,095.80

The accompanying notes form an integral part of these financial statements.                                           

Exchange rate: (31 Dec., 2017) RMB/GBP 8.7792; (31 Dec., 2016) RMB/GBP 8.5094;                                                                                  

CHINA CDM EXCHANGE CENTRE LIMITED

CASHFLOW STATEMENTS

	Note	1/1/2017-12/31/2017		1/1/2016-12/31/2016
		RMB	GBP	RMB	GBP
Cashflows from operating activities
Cashflows from operating operations:	11	3,488,657.33	398,539.72	4,439,423.22	496,402.10
Net cash generated from operating activities
Cashflows from investing activities
Cash payment for investment
Other investment
Net cash used in investing activities	12
Cashflows from financing activities
Proceeds from issuance of ordinary shares
Net cash used in financing activities
Gains on foreign transactions		-34,759.23	-3,970.85	50,386.22	5,634.03
Net (decrease)/increase in cash and bank balance		3,453,898.10	394,568.87	4,489,809.44	502,036.12
Cash and bank balance at the beginning of year		19,632,659.95	2,242,809.81	15,142,850.51	1,693,225.08
Cash and bank balance at the end of year		23,086,558.05	2,637,378.68	19,632,659.95	2,195,261.20

   The accompanying notes form an integral part of these financial statements.                                              

Average exchange rate: (2017) RMB/GBP 8.7536; (2016) RMB/GBP 8.9432;

Details of the adjusted earnings per share are set out below:

	2017	2016	2015
Basic EPS (GBP)	0.0003	0.00002	0.0001
Earnings attributable to ordinary shareholders (GBP)	34,880.03	2,324.89	6,438.31
Weighted average number of shares	117,000,000	117,000,000	117,000,000