Northwest Investment : FY 2015 Final Accounts

31b03d84-f336-409b-8a75-6bb5544fadac.pdf

NORTHWEST INVESTMENT GROUP LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

CONTENTS Page

Directors, secretary and advisers 2

Chairman's statement 3

Investing policy 4

Directors' report 5-6

Corporate governance statement 7

Independent auditors'report 8

Statement of comprehensive income 9

Statement of financial position 10

Statement of changes in equity 11

Statement of cash flows 12

Notes to the financial statements 13 - 19

NORTHWEST INVESTMENT GROUP LIMITED

DIRECTORS, SECRETARY AND ADVISERS

Directors Kaifeng Li

Zheng Kang Enxia Liu

Yi Feng

Chairman

Chief Executive Officer Executive Director

Non-executive Director

Secretary Jianjun Shi

Registered office Sea Meadow House

Blackburne Highway, (P.O. Box 116) Road Town

Tortola

British Virgin Islands

Business address 20/F Tower B, Yicheng International Centre No. 10 Ronghua Zhonglu

Yizhuang Economy & Technology Development Zone Beijing 100176

P. R. China

Independent auditors UHY Hacker Young LLP 4 Thomas Square London

E1W 1YW

Nominated adviser and broker ZAI Corporate Finance Limited

11 Staple lnnt London

WC1V 7QH

Registrars Capita Registrars (Guernsey) Limited Longue Hougue House

St Samrson Guernsey GY2 4JN

Depository Capita IRG Trustees limited The Registry

34 Beckenham Road Beckenham

Kent

BR3 4TU

Bankers HSBC Private Bank (Suisse) SA Levels 13 and 14

1 Queen's Road Central Hong Kong

NORTHWEST INVESTMENT GROUP LIMITED CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015

On 9 June 2010, Northwest Investment Group Ltd. ("NWIG" or "the Company") raised 3 million pounds from investors and was admitted to trading on the AIM market of the London Stock Exchange. Since then we have been engaging ourselves in identifying high-value investment targets in the hydropower market in Western China in accordance with the investing policy of the Company.

Since admission to AIM, we have dedicated ourselves to make a sizeable acquisition and have engaged with numerous people and organizations in order to acquire or invest in hydropower projects.During the first half of 2015, we closely examined more than three projects for possible investment and as part of this, in early 2015, we started a due diligence exercise on one particular energy project. However negotiations over this project were suspended due to communication issues encountered in the preparation of documentation. At the same time, there was a strong performance in the Chinese stock market in the first half of 2015, which weakened the motivation of two hydropower companies which had been exploring the possibility of raising money on the London Stock Exchange through a combination with the Company. Despite these continued setbacks, the board continues its endeavours to select and search for high-quality assets to be injected into NWIG.

We will update shareholders as and when progress with a target is publishable. Since the Company has not substantially implementedits investing policy within 18 months of Admission then, in accordance with the AIM Rules, the Company's

investing policy is subject to the approval of shareholders at the annual general meeting.

In the second half of 2015, we broadened our search to look at other clean energy projects.following the "One Belt One Road" ("OBOR") policy put forward by President Xi of P. R. China, recently broadened to other clean energy projects. However, we have not as yet concluded a transaction given the current financial environment. We will update shareholders as and when appropriate. Since the Company has not substantially implemented its investing policy, it is again being put within 18 months of Admission then, in accordance with the AIM Rules, the Company's investing policy is subject to the approval of shareholders at this year's annual general meeting. The Company's current investing policy is set out in full immediately following this statement and is included, with a number of minor amendments, in the circular containing the Notice of Annual General Meeting accompanying the accounts.

In 2015, the clean energy market in China was boosted following the execution of ·oneBelt One Road" ("OBOR") put forward by President Xi of P. R. China. That should bea great stimulus to the clean energy industry in Northwest China. In 2015, we dedicated ourselves to finding high-quality clean energy assets and we believe we can complete the acquisition in the near future.

As the business develops, we will continue to attract talented and qualified personnel, to assist us to meet our strategic objectives. Iwould once again like to extend my sincere thanks to my staff and board for their zeal, vision and support and to Mr Ka Ming Wong for his valuable support from flotation until his departure in January of this year. We continue to search for a replacement Non-Executive Director.

29 June 2016