Annual Financial Report

China CDM Exchange Centre Limited

Final results for the year ended 31 December 2016

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 2016, the Company gained the revenue of GBP £898,146.26 in 2016.

In 2016, the Global Climate Change issue aroused extensive focus in the world. In 2016, the carbon market goes with the Paris Agreement on Climate Change which was made in December 2015. And regarding the CCER market, more than 900 enterprises have opened carbon accounts with the Beijing Carbon Trading Exchange since it was established in 2013. And in 2016, National Development and Reform Commission (“NDRC”) determined the national total carbon and carbon allowance and it will be executed in 8 industries in China on March 2017. And we have dedicated ourselves to work at the CCER Projects during the whole 2016.

I would like to extend my sincere thanks to the management and staff of the Company for performing the tasks with zeal, vision and dedication and as well as to our partners for their effective and efficient cooperation.

Outlook for 2017

In 2017, 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 [e-mail]	[phone]end_of_the_skype_highlighting
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	1/1/2016-12/31/2016		1/1/2015-12/31/2015
		RMB	GBP	RMB	GBP
Revenue	3	8,032,301.64	898,146.26	9,547,322.00	1,004,199.04
Cost of sales		(6,348,484.85)	(709,867.26)	(7,574,043.80)	(796,647.22)
Gross profit		1,683,816.79	188,279.00	1,973,278.20	207,551.82
Selling expense
Administration expenses		(1,713,411.07)	(191,588.14)	(1,880,418.69)	(197,784.75)
Profit from operations	4	(29,594.28)	(3,309.14)	92,859.51	9,767.07
Foreign exchange gains		50,386.22	5,634.03	(31,647.89)	(3,328.76)
Profit before income tax		20,791.94	2,324.89	61,211.62	6,438.31

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

Average exchange rate: (2016) RMB/GBP?8.9432; (2015) RMB/GBP?9.5074;

                                                                         CHINA CDM EXCHANGE CENTRE LIMITED

BALANCE SHEETS

	Note	12/31/2016		12/31/2015
		RMB	GBP	RMB	GBP
Non-current assets
Property Plant and Equipment	5	78,760.97	9,255.76	83,734.55	8,707.93
Long term investment	6	372,042,500.00	43,721,355.21	372,042,500.00	38,690,346.20
Intangible assets	7
Total non-current assets		372,121,260.97	43,730,610.97	372,126,234.55	38,699,054.13
Current Assets
Trade receivable	8	51,450,483.90	6,046,311.59	55,914,527.82	5,814,799.22
Other receivables
Cash and cash equivalents	9	19,632,659.95	2,307,173.24	15,142,850.51	1,574,772.04
Financial assets at fair value through profit or loss
Total current assets		71,083,143.85	8,353,484.83	71,057,378.33	7,389,571.26
Total assets		443,204,404.82	52,084,095.80	443,183,612.88	46,088,625.39
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		170,804,702.09	15,560,966.16	170,783,910.15	15,565,079.58
Foreign currency translation difference			18,008,964.61		12,009,380.78
Total shareholder’s equity		443,204,404.82	52,084,095.80	443,183,612.88	46,088,625.39
Total liabilities and shareholder’s equity		443,204,404.82	52,084,095.80	443,183,612.88	46,088,625.39

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

Exchange rate: (31 Dec., 2016)RMB/GBP?8.5094; (31 Dec., 2015) RMB/GBP?9.6159;

CHINA CDM EXCHANGE CENTRE LIMITED

CASHFLOW STATEMENTS

	Note	1/1/2016-12/31/2016		1/1/2015-12/31/2015
		RMB	GBP	RMB	GBP
Cashflows from operating activities
Cashflows from operating operations:	11	4,439,423.22	496,402.10	5,495,916.49	578,067.24
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		50,386.22	5,634.03	(31,647.89)	(3,328.76)
Net (decrease)/increase in cash and bank balance		4,489,809.44	502,036.12	5,464,268.60	574,738.48
Cash and bank balance at the beginning of year		15,142,850.51	1,693,225.08	9,678,581.91	1,018,005.12
Cash and bank balance at the end of year		19,632,659.95	2,195,261.20	15,142,850.51	1,592,743.60

   The accompanying notes form an integral part of these financial statements.
Average exchange rate: (2016) RMB/GBP?8.9432; (2015) RMB/GBP?9.5074;

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

	2016	2015	2014
Basic EPS (GBP)	0.00002	0.0001	0.0002
Earnings attributable to ordinary shareholders (GBP)	2,324.89	6,438.31	28,587.56
Weighted average number of shares	117,000,000	117,000,000	117,000,000