Valuation Conclusion. (I) Valuation conclusion based on the asset-based approach Upon valuation based on the asset-based approach, the book value and the appraised value of total assets of CNBM (Hefei) New Energy Company Limited* were RMB1,147,282,200 and RMB1,148,333,600, respectively, representing an appreciation of RMB1,051,400 or 0.09%; the book value and the appraised value of its liabilities were RMB972,802,200 and RMB972,802,200, respectively, without any movements; and the book value and the appraised value of its net assets were RMB174,480,000 and RMB175,531,400, respectively, representing an appreciation of RMB1,051,400 or 0.60%. The summary of valuation results is set out below: Summary of Asset Valuation Results Unit: RMB0,000 Item Book value Appraisedvalue Appreciation/ depreciation Appreciationrate % Current assets 29,916.95 30,651.91 734.96 2.46 Non-current assets 84,811.27 84,181.45 -629.82 -0.74 Including: Fixed assets Project under construction 70,046.24 4,413.89 68,171.59 4,253.09 -1,874.65 -160.80 -2.68 -3.64 Intangible assets 9,840.77 11,246.40 1,405.63 14.28 Land use right 9,831.65 10,521.53 689.88 7.02 Others 510.37 510.37 – – Total assets 114,728.22 114,833.36 105.14 0.09 Current liabilities 74,504.22 74,504.22 – – Non-current liabilities 22,776.00 22,776.00 – – Total liabilities 97,280.22 97,280.22 – – Net assets 17,448.00 17,553.14 105.14 0.60 Note: For detailed information of the valuation results, please refer to the statement of asset valuation.
Valuation Conclusion. Beijing Guorongxinghua Assets Appraisal Co., Ltd.* (北京國融興華資產評估有限責任公司) adopted the asset-based approach and the income approach to value the entire shareholders’ equity value of the Target Company with 30 June 2021 as the Benchmark Date. If the appraised value of the entire shareholders’ equity of the Target Company had been prepared based on the asset-based approach, the appraised value would have been approximately RMB66, 334, 600, representing a difference of approximately RMB45,176,200 from the appraised value of approximately RMB111,510,800 based on the income approach mentioned above. The difference was mainly due to the difference in the nature of the focus of the income approach and the asset-based approach: the valuation result of the asset-based approach mainly reflected the summation of the value of the existing individual assets of the Target Company, which could not reflect the comprehensive profitability and overall value of the businesses of the enterprise as a whole, whereas the income approach mainly considered the future profitability of the Target Company, taking into account the intrinsic value of each resource, including the brand competitiveness, customer resources value, human resources value and corporate management value of the Target Company. Therefore, on balance, the valuation result of the income approach can better reflect the entire shareholders’ equity value of the Target Company in an objective and reasonable manner, i.e. the valuation value of the entire shareholders’ equity of the Target Company is RMB111,510,800. The Directors have reviewed the Asset Valuation Report and are of the view that the appraised value has been arrived at after due and careful enquiry. PricewaterhouseCoopers, the auditor of the Company, has reviewed the arithmetical calculations and the compilation of the discounted future estimated cash flows in accordance with the bases and assumptions adopted by the Directors set out in the Asset Valuation Report. The discounted future estimated cash flows prepared for the appraised value do not involve the adoption of accounting policies. A letter from the Board and a report from PricewaterhouseCoopers have been submitted to the Stock Exchange and are set out in Appendix I and Appendix II to this announcement respectively. The qualifications of the experts who have given their statements in this announcement are as follows: Name Qualification PricewaterhouseCoopers Hong Kong Certified Public Accountants Beiji...
Valuation Conclusion. As previously discussed, PwC selected the DCF method as the primary methodology in arriving at the EV of Catalyst. PwC considers the DCF method to be the most applicable approach, as it includes the impact of financial considerations unique to Catalyst, such as the use of available tax losses and existing depreciable tax basis. PwC also employed the Market Approach as a secondary approach to test the reasonability of the conclusion under the DCF method, using both the Guideline Public Company method and the Precedent Transaction method. The implied multiples for Catalyst as calculated using the DCF method fall within the range of observed multiples in both the Guideline Public Company method and the Precedent Transaction method; therefore, PwC considers the value arrived at through the DCF method to be reasonable. Subject to the limitations, the scope of review, and the assumptions set out herein, it is PwC's opinion that the FMV of the Shares, as at the Valuation Date, is $nil. Based on Catalyst's 14.5 million shares outstanding, the implied FMV of the Shares on a per share basis is $nil.
Valuation Conclusion. It is therefore our opinion that, as of September 6, 1996, the estimated pro forma fair market value of Fairfield was $17,500,000, based on 1,750,000 shares at $10.00 per share. The resulting range of value was $14,875,000 or 1,487,500 shares, to $20,125,000 or 2,012,500 shares, both based on $10.00 per share. Pro forma calculations which include the impact of an eight percent purchase by Fairfield's Employee Stock Ownership Plan ("ESOP") and a four percent purchase by the Stock Programs subsequent to conversion are shown in Table 4.3 and in Exhibits IV-2 through IV-7. Subject to market conditions at the time of the offering, an overallotment provision up to 15 percent above the maximum value, or $23,143,750 could be made available.
Valuation Conclusion. In this valuation, the value of entire shareholders’ equity interests of the Target Company, using the asset-based approach and the market approach, is respectively RMB686,447,700 and RMB706,248,900, representing a difference of 2.88%, which is mainly due to the fact that the asset-based approach is considered from the re- acquisition of assets, reflecting the replacement value of the existing assets of the Target Company, and the market approach adopts the transaction case comparison method for valuation, reflecting the value of the Target Company’s shareholders’ equity in the capital market. We consider that valuation results adopting the market approach are more reflective of the Target Company’s true value due to the fact that the purpose of the valuation is to increase capital and expand shares and the consideration of its value under the optimal use of assets is gave higher priority by the enterprises, the value of entire shareholders’ equity interests of the Target Company is RMB706,248,900. Specific Application of Valuation Approaches Asset-based approach Asset-based approach refers to an approach of calculating the Target Company’s evaluation values of various assets separately, accumulating and summing them up, and then deducting the evaluation values of liabilities to obtain the value of entire shareholders’ equity interests. Basic formula: value of total shareholders’ equity = sum of appraised value of individual assets – sum of appraised value of individual liabilities
