For economic activities to proceed, China-based companies are required to prepare valuation reports to obtain approval from or to file with different government authorities. Valuation conducted for such purposes are statutory valuation. Pursuant to regulatory requirements of the People's Republic of China (the "PRC"), statutory valuation reports must be prepared by licensed asset valuers qualified by the Ministry of Finance of the PRC.

Typically, our statutory valuation is mainly used for the following purposes:

• Corporate Restructuring

  Corporate restructuring refers to the process of a company fully or partly transformed into a limited liability company, or a limited liability company fully or partly transformed into a joint-stock limited company.

  ValueLink Valuation provides professional valuation advice on the value of assets under the corporate restructuring by conducting valuation of all assets and liabilities (or total shareholders’ equity) of an enterprise.

  Asset valuers in ValueLink Valuation have extensive experience in corporate restructuring valuation. They are familiar with regulations in relation to corporate restructuring valuation, as well as relevant accounting treatments. Therefore, they help provide professional valuation services and advice on corporate restructuring.

• Sino-foreign Joint Venture

  By conducting valuation of different assets which are commonly found in sino-foreign joint ventures, such as machinery and equipment, property, land, patented technologies, proprietary technologies, copyright, trademark, mining concessions, right of sea area use and equity interest, we provide professional opinions on value of assets in sino-foreign joint ventures.

  Asset valuers in ValueLink Valuation are familiar with relevant laws and regulations regarding sino-foreign joint ventures valuation, as well as different valuation skills for various assets of sino-foreign joint ventures. Therefore, we help provide professional valuation services and recommendations for sino-foreign joint ventures.

• Corporate Listing (IPOs)

  Corporate listing may usually involve various types of valuation, such as the VIE dismantling valuation, the valuation of joint-stock company newly established by asset contribution, the valuation of the joint-stock company under corporate restructuring, the valuation review on previous non-monetary asset contribution and asset reorganization valuation.

  Asset valuers in ValueLink Valuation are familiar with the corporate listing valuation business that we know well about the corporate listing valuation requirements specified by securities regulatory authorities, and are familiar with the main difficulties commonly seen in valuation for corporate listing. Therefore, we help provide professional valuation services and recommendations for corporate listing (IPOs), and prepare professional valuation report conforming to the requirements of regulatory authorities.

• Material Asset Reorganization and Backdoor Listing

  Material asset reorganization and backdoor listing usually involve valuation of assets exchange-in and exchange-out.

  ValueLink Valuation provides professional valuation advice for the fair value of assets exchange-in and exchange-out involved in material asset reorganization and backdoor listing by conducting valuation of equity or asset (asset group) at fair value.

  Asset valuers in ValueLink Valuation have extensive experience in carrying out valuation of material asset reorganization and backdoor listing. They are familiar with relevant laws and regulations regarding material asset reorganization, as well as the main difficulties commonly encountered in material asset reorganization and backdoor listing process. Therefore, we help provide professional valuation services and recommendations for material asset reorganization and backdoor listing, and prepare professional valuation report conforming to the requirements of securities regulatory authorities.

• Non-Monetary Asset-Based Foreign Investments

  Non-monetary asset-based foreign investments usually involve valuation of various asset classes used for capital contribution, which include inventories, machinery and equipment, property, land, patented technologies, proprietary technologies, copyright, trademarks, rights of sea area use and equity interest. The valuation should provide professional opinion for the value of assets involved in capital contribution.

  Asset valuers in ValueLink Valuation are familiar with relevant regulations and Company Law regarding contributed assets, the accounting treatment of asset contribution and the application of various valuation skills for various contributed assets. Therefore, we help provide professional valuation advice for the fair value of contributed assets, and prepare professional valuation report conforming to the requirements of administrations for industry and commerce.

• Corporate Mergers and Spin-offs

  ValueLink Valuation provides professional valuation advice for the fair value of assets involved in corporate mergers and spin-offs by conducting valuation of the equity value, and all or part of any assets and liabilities involved in corporate mergers and spin-offs,

  Asset valuers in ValueLink Valuation are familiar with relevant regulations regarding corporate mergers and spin-offs, as well as accounting treatments of corporate mergers and spin-offs valuation. Therefore, we help provide professional valuation services and recommendations for corporate mergers and spin-offs.

• Corporate Capital Increase and New Share Issuance

  ValueLink conducts valuation of different assets for such transaction as capital increase and new share issuance, and provides professional valuation advice for corporate capital increase and new share issuance.

  Asset valuers at ValueLink Valuation are familiar with the application of valuation skills of different assets for capital contribution. By analyzing the market environment and the industry environment and the target enterprises’ current status, and adopting reasonable valuation methods, ValueLink provides professional opinions on the fair value of equity of the entity at transaction date, and provides professional valuation services for corporate capital increase and new share issuance.

• Equity and Asset Transfer (Swap) of Listed Companies (State-Owned Enterprises)

  ValueLink conducts valuation of the enterprise value and asset (asset group) value of the entity subject to valuation in equity and asset transfer transaction, and provides professional valuation advice on the fair value of equity and asset transferred.

  Equity and asset transfer (swap) by listed companies (state-owned enterprises) is a common economic activity. Asset valuers at ValueLink Valuation help analyze equity value and asset value by reasonably applying different valuation methods such as the asset-based approach, the income approach and the market approach based on enterprise characteristics and asset characteristics. Therefore, we help provide professional opinions on fair value of equity and asset (asset group) proposed to be transferred by listed companies (state-owned enterprises), and prepare professional valuation report conforming to the requirements of securities regulatory authorities and the filing and audit requirements of SASAC.

• Asset Leasing of Listed Companies (State-Owned Enterprises)

  ValueLink analyzes the asset rentals involved in asset leasing by listed companies (state-owned enterprises), and forecasts value which could be created within the assets’ lease terms, and provides the leaser and the lessee with fair and equitable price analysis.

• Pledge and Guarantee of Assets

  By understanding and comprehensively analyzing various factors including the current asset status and economic efficiency of pledged and secured assets, ValueLink help identify the continuous operating conditions of assets within security guarantees terms, and provide professional valuation advice on their fair values.

• Asset-related Litigations

  ValueLink conducts detailed analysis of the litigations in relation to different types of litigations-related assets and then identify specific valuation skills and confirm reasonable and practicable valuation plans, and thus provides litigations-related parties with the fair basis for asset disposal.

• Asset-Related Litigations

  ValueLink conducts value analysis of assets during corporate liquidation and dissolution transaction.

  Asset valuers at ValueLink Valuation are familiar with liquidation procedures, and have extensive experience in valuation assignments during liquidation and winding up transaction. Therefore, we help choose a reasonable valuation method to offer valuation support for securing the legitimate right of parties related to corporate liquidation and dissolution in strict accordance with the liquidation procedure and laws and regulations.

• Disposal of Non-Performing Financial Assets

  ValueLink Valuation help provide professional value measurement and value analysis services for subprime loans, doubtful loans and loss loans held by banks, financial non-performing loans acquired or taken over by financial asset management companies, and non-performing assets such as non-performing loans held by other non-bank financial institutions. ValueLink Valuation routinely help provide professional valuation advice on disposal of non-performing assets.

• Valuation for Tax Purposes

  ValueLink conducts independent, objective and fair estimation on value of assets/liabilities subject of tax to provide valuation support for taxpayers to reasonably calculate tax basis of the subject asset and resulting tax amount. All the calculations and analyses are made in conformity with the requirements from the tax authority.

• Valuation of Certain Asset Classes (Land, Property, Mining Concessions, Forest Assets, Rights of Sea Area Use)

  1. Valuation of Mining Concessions

  Per the requirements of relevant regulatory authorities in the PRC and the relevant regulations of HKEx, mining concessions in mining asset trading are required to obtain a valuation report issued by a professional valuer. The normal workflow of ValueLink is to research and understand mining concessions, collect relevant information and data such as resource reserves, reserves review records, production technique indexes and development and utilization plans, identify the value of exploration rights and mining concessions through professional analysis and calculation.

  2. Valuation of Forest Resources

  ValueLink provide professional valuation advice for parties related to forest resources by valuating resources specification, structure, condition of forest, objective conditions that may cause changes in resources such as forestation, logging and insect pest per requests.

  3. Valuation of right of sea area use

  By evaluating factors regarding rights of sea area use including social economy, natural environmental conditions, the basic status of rights of sea area use and its adjacent sea area, relevant production and operation and financial position, trading cases, current status of the sea market development, types of sea area use and status of exploitation and utilization, ValueLink reasonably chooses suitable valuation method such as the income approach, the cost approach, the assumed development approach, the market comparison approach and the benchmark price coefficient amendment approach, in order to provide fair valuation conclusion for parties related to rights of sea area use.

Headed by Mr. Luo Junjun, our chief asset valuer, we have completed a vast number of statutory valuation projects for clients to ensure the smooth proceeding of their transactions. After these years, we have developed unique statutory valuation procedures and capabilities of highly efficient coordination with clients, securities firms, accountants and law firms.

In addition to the above statutory valuation projects in China, we also conduct valuation for companies listed in HK for inclusion in the circular and valuation for companies listed in the US for the purposes of fairness opinions.

• Market Value Appraisal

  Evaluate the market value of clients’ assets and liabilities and issue valuation report.

  The VAS will use the generally accepted actuarial methods to evaluate the market value of the related assets and liabilities, where the work scope will include data cleansing, establishment of database and actuarial models, finalizing the model assumptions and issue the valuation report.

• Pricing Valuation

  Evaluate the pricing of the related risk factors and issue opinion on pricing rates.

  The VAS will review/analyze the risk pricing scheme of clients’ related products and issue opinion on pricing rates, where VAS will clarify the reasonableness of the risk factors used in pricing and will estimate a reasonable value range for each risk factor.

• Insurance Companies’ Reserve Valuation

  Professional reserve valuation for insurance companies and issue actuarial report.

  The VAS can issue actuarial reports for various insurance companies including life insurance, Property & Casualty insurance and health insurance, where the reports would satisfy auditor and local regulatory requirements.