China Ouhua Winery confident Yantai, China land deal will be resolved in six months

PETALING JAYA: China Ouhua Winery Holdings Ltd today said it is confident that a RMB132 million (RM81.7 million) transaction for land and buildings in Yantai City, China made in 2013, that led to a qualification of its accounts, will be resolved in six months.
Its external auditor Messrs UHY Lee Seng was unable to determine the recoverability of a RMB118.8 million deposit the company paid for a contract to purchase land and property in China.
The payment of 90% of the purchase consideration of RMB132 million was made to Huangwu Subdistrict Office, Zhifu District, Yantai City, China on December 17, 2013.
The company told Bursa Malaysia its application for the land title ownership transfer to subsidiary Yantai Fazenda Ouhua Winery Co., Ltd, is in the process of getting final approval as well as issuance of land and property title certificate by Yantai Land Commission Office.
It added that a new rule in China has led to the merging of land and property titles to one land and property title, which involved tedious procedures for merging the registration and caused the delay in Yantai Land Commission Office processing Yantai Ouhua’s transfer application.