Anwell Technologies Limited (the world’s second largest CD/DVD/BD manufacturing machinery supplier and one of the very few remaining companies in this field) and its subsidiary - Henan Kerry/Umedisc (world’s top 5 blank CD/DVD producer) are on the brink of total collapse.
The Company announced in July 2014 that part of the assets of the Companyâ€™s subsidiary, Henan Kerry, had been seized and sold via auction by the creditors of the Group.
Further thereto, the Company would like to update shareholders that the optical disc operations of Henan Kerry have since ceased all together as at the date of this announcement. Orders previously placed with Henan Kerry have all been duly fulfilled and delivered. However, Henan Kerry has not received any new orders from its customers.
Ever since the suspension of the Dongguan operations and the freezing of the bank accounts of the Group by the Dongguan local government, the business operations and cash flow of the Group have been adversely and severely affected. The Group is unable to fulfil its payment obligations to the PRC banks and creditors. The latter have also seized the Groupâ€™s assets in the PRC.
In view of the current dire situation, customers of the Henan Kerry are concerned that any raw materials supplied to Henan Kerry pursuant to any new order placed with us may also be seized and force sold by creditors. [There is at the same time a growing doubt and lack of confidence amongst the Groupâ€™s customers in respect of our abilities to fulfil new orders and also amongst the Groupâ€™s suppliers in respect of our financial situation].
Arising from the cessation of operations, Henan Kerry has also retrenched a large part of its workforce.
BY ORDER OF THE BOARD
Chan Kun Shuin
Lead Independent Director
Audit Committee Chairman
13 February 2015