Chinese aliying predecessor culture

[TechWeb] December 10th news reports, the Alibaba Film Group Limited announced yesterday evening, released a survey report of its predecessor China culture media group of historical financial problems, the report by the aliying commissioned an independent third party PWC completed.

Hua Yongdao reports confirmed that Ali pictures exist in inappropriate financial processing involving financial year years before Alibaba group initiated the acquisition of culture are China. Its independent review and analysis of the retrospective financial cycle for the cultural China from June 30, 2014 to 2012 financial year.

culture in China has been listed in Hongkong for 20 years, the public company, the problems involved in the year of the financial audit by one of the top four accounting firms.

PWC submitted an independent review report that during this period, the original culture China group has not set up the internal audit department, the original culture Chinese group structure and responsibilities of the financial function division of labor should be improved. In addition, the original culture of China’s accounting and financial processes and procedures, filing system and tax risk management system needs to be strengthened. Specifically, due to the failure to obtain a formal tax invoice and delay the payment of taxes, the use of improper value-added tax rates and other issues.

The original

China culture may be due to delay paying taxes and related matters need to pay fines. It is estimated that the tax issues of false positives, the net assets of the company in December 31, 2012 and December 31, 2013 will be reduced to approximately HK $27 million and HK $52 million as of December 31, 2012 net profit for the year ended December 31, 2013 and will be reduced to approximately HK $29 million and HK $25 million.

due to the financial impact of convertible bonds of false positives, in December 31, 2012 and December 31, 2013 the net asset value of HK $18 million will be reduced and increased to approximately HK $25 million, as of December 31, 2012 net profit for the year ended December 31, 2013 and will be reduced to approximately HK $14 million and an increase of approximately HK $51 million.

according to the published announcement, PWC believes that 2012 and 2013 financial statements are China culture policy application potential false positives, accounting changes need to be improved, the adjustment of financial information and internal control environment.

Ali pictures said PWC will be based on the results of the review, and make appropriate adjustments will by the end of December 31, 2012 and December 31, 2013 financial annual financial statements, and consider the examination results and the adjustment in the six month period ended June 30, 2014 financial report was finalized.

Ali pictures board stressed in the announcement, according to PWC’s proposal, will hire an independent consultant on how to improve.