DGAP-Adhoc: China Specialty Glass AG and Saint-Gobain Glass France terminate distributorship agreement

China Specialty Glass AG  / Key word(s): Contract/Weiteres Schlagwort

05.01.2012 11:56

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Gruenwald/Munich, January 05, 2012 - China Specialty Glass AG (CSG),
announces that CSG's operating entity Guangzhou Hing Wah Glass Industry Co.
(HWG), Ltd. and the Miroiterie du Rhin SAS, a subsidiary of Saint-Gobain
Glass France, have terminated the existing exclusive distributorship
agreement effective on December 31, 2011. The agreement, which was signed
on May 27, 2011, covered selected advanced glazing solutions. The
termination will have the following impacts on the consolidated financial
statements:

The non-satisfying development of the co-operation between both parties
already led in the interim financial statements for the nine months ended
30 September 2011 to an impairment loss of EUR 3.6 million on the
distribution rights related to the agreement. The determination of this
impairment loss also took into account potential further payments which
CSG's Management Board had estimated at EUR 2 million. However, in the
termination settlement a final payment of only EUR 1 million was agreed.
This will lead to a negative effect on the profit before tax for the full
year results 2011 in the amount of approximately EUR 2.6 million instead of
the anticipated EUR 3.6 million in the third quarter 2011.  The related
distribution rights assets with a net book value in the latest financial
statements for the nine months ended 30 September 2011 of EUR 15.6 million
and related liabilities of EUR 16.6 million will no longer be recognised in
the statement of financial position as a result of this settlement. This
will lead to income of approximately EUR 1 million in the fourth quarter of
2011 which will partially offset the impairment loss of EUR 3.6 million
recognised in the third quarter of 2011, and hence result in the net
negative effect on profits before tax of approximately EUR 2.6 million for
the financial year. The amount of the net effect could vary according to
exchange rate movements as the distribution rights are denominated in
Renminbi.


05.01.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      China Specialty Glass AG
              An den Römerhügeln 1
              82031 Grünwald
              Germany
Phone:        +49 (0)89 189 42 52 27
Fax:          +49 (0)89 189 42 52 28
E-mail:       ir@csg-ag.com
Internet:     http://www.csg-ag.de
ISIN:         DE000A1EL8Y8
WKN:          A1EL8Y
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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