Photo/Shetuwang

Aug. 19 (NBD) – Han's Laser Technology Industry Group Co Ltd ("Han's Laser", 002008.SZ) released statements on Sunday disclosing rectification measures for the European R&D center project issues and detailing the general contract of the facility construction.

National Business Daily noticed that while apologizing for its mistakes, Han's Laser mentioned in latest announcements it improved the information disclosure process, especially for those overseas businesses, and it hired an internationally renowned accounting firm on August 8 to conduct independent audit on the European R&D center project, and the audit results will be announced to the public in time.

Besides, the company revealed the details on the R&D center construction deal with Switzerland-based real estate firm Eberli Generalunternehmung AG.

Han's Laser inked the general contract for the building of the European R&D center through the European wholly-owned subsidiary with Eberli Generalunternehmung AG on July 8 of 2016, and contract was worth 154.5 million Swiss francs, around 1.055 billion yuan based on the exchange rate at the time, Han's Laser noted.

It's noted that in November 2012, the European unit of Han's Laser spent 9 million Swiss francs (9.09 million U.S. dollars) to acquire 28 percent of Eberli Sarnen AG, which owns Eberli Generalunternehmung AG, and Eberli Sarnen AG bought the shares back for the same 9 million Swiss francs last March.

Since Han's Laser signed the construction contract with Eberli Generalunternehmung AG in 2016 when it still held stakes in the latter's parent, there arises a question: does the contract belong to a related party transaction? Han's Laser has denied an affiliate relationship with Eberli Generalunternehmung AG.

The laser-based products maker's eight-year-long R&D center project initiated in 2011 drew attention of China's authorities and news media, as it raised the construction budget from the initial 50 million yuan (7.1 million U.S. dollars) to a shocking 1.05 billion yuan, which was revealed in its 2018 annual report.

The Shenzhen Stock Exchange said in a filing sent to Han's Laser this August that the listed company hasn't performed the board of directors review procedure at the beginning of the project that had constituted a major property purchase. The laser equipment maker didn't implement sufficient and timely disclosure of project information, said the bourse.

Aside from the further project information disclosure, the laser manufacturer released its financial earnings for the first half of 2019. Its revenue declined by 7.30 percent year-on-year to 4.73 billion yuan, with net profit attributable to shareholders of listed company falling to 379 million yuan, down 62.74 percent year over year.

Email: gaohan@nbd.com.cn