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Investor Presentaiton

Recovery Value . • If IsZo cannot resolve the liquidity crisis with the lending banks, and in the worst-case scenario, the Company would face liquidation. ⚫ The liquidation value would be adversely impacted by substantial tax liabilities triggered by the sale of properties. . In the PRC, major tax items include*: ✓ value-added taxes on sales proceeds (after deductible amount) estimated to be approximately 10%**; ✓ land appreciation tax levied on gains at a progressive rate from 30% to 60%; and ✓ corporate income tax levied at a standard rate of 25%. • The management estimates that the aggregate tax rate would be approximately 30-40% of the sales consideration. • In the event of a forced liquidation, at fire-sale prices, project values would be substantially lower, destroying significant shareholder value. ⚫ The highest priority for Nam Tai management is to resolve the liquidity crisis, resume normal course operations and execute our strategic plan. Notes: * The taxation is a complicated matter and varies considerably with the transaction structure. The relevant discussion is provided for reference only. ** Nam Tai Inno Valley and Wuxi Facilities would be eligible to the value-added tax rate for products prior to 2016, which is approximately 5.6% INVESTOR PRESENTATION 36 NAMTAI
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