C CARBONNEUTRAL (01372.HK): Clarifies HK$58.7 Million Carbon Credit Gap

NewTimeSpace News: China Carbon Neutral Development Group Limited (stock code: 01372) issued a clarification on the disciplinary action announcement published by the Stock Exchange on 3 November 2026, saying that it does not dispute the Listing Committee's findings of fact but seeks to explain the accounting judgments and the timing of disclosure.

On the overstatement of carbon credit assets, the Company said its second interim results and second interim report for the twelve months ended 31 December 2023 overstated carbon credit assets by about HK$58.7 million, a difference stemming from a mismatch between the issuance of Verified Carbon Units (VCUs) in the Verra Registry and the timing of recognition for financial reporting. During 2023, Verra initiated additional review and suspension procedures for certain methodologies and project types, slowing VCU issuance, so the units were not credited to the Group's Registry account before the period end; management recognised the assets on the basis that submissions had been filed and issuance was expected shortly, and the Listing Committee later treated the difference as an overstatement under a strict application of the standards.

On disclosure, the Company confirmed that its March 2024 acquisition of a mainland company for HK$30 million had been completed but was not disclosed in a timely manner under Chapters 13 and 14 of the Listing Rules, which it described as inadvertent, adding that an announcement has since been published.

It listed four remedial measures, including requiring actual crediting in the Verra Registry before asset recognition, revising its notifiable transactions policy, mandatory compliance training and monthly reporting to the audit committee.