Shenzhen China Bicycle Company (Holdings) Limited The 1st Quarterly Report for 2009(Full Text)
1
Shenzhen China Bicycle Company (Holdings) Limited
The 1st Quarterly Report for 2009
(Full Text)
§1. Important Notice
1.1 Board of Directors and the Supervisory Committee of Shenzhen China Bicycle Company
(Holdings) Limited (hereinafter referred to as the Company) and its directors, supervisors and
senior executives hereby confirm that there are no any fictitious statements, misleading statements,
or important omissions carried in this report, and shall take all responsibilities, individual and/or
joint, for the reality, accuracy and completion of the whole contents.
1.2 Particulars about the directors presented the Board meeting on examining the Quarterly Report:
Director Mr. Zhu Jianqi did not present the meeting due to work, but he entrusted Director Mr. Li
Ronghui to present and exercise voting rights.
1.3 The Financial Report For the 1st Quarterly Report of the Company has not been audited by
CPAs.
1.4 Shang Shijun, Principal of the Company; Jiang Houjin, Person in Charge of Accounting Works;
and He Yili, Person in Charge of Accounting Institution (Accounting Officer) hereby confirm that
the Financial Report enclosed in the 1st Quarterly Report is true and complete.
§2. Company Profile
2.1 Main Accounting Data and Financial Indexes:
Unit: RMB
At the end of the report
period At the end of the last year Changes of
increase/decrease (%)
Total assets 186,269,013.66 190,897,705.53 -2.42%
Equity attributable to owners of
the parent company -1,820,750,492.60 -1,803,059,381.39 0.98%
Share capital 479,433,003.00 479,433,003.00 0.00%
Net asset per share attributable to
owners of the parent company -3.7977 -3.7608 0.98%
In the report period The same period of last
year
Changes of
increase/decrease (%)
Total operating income 52,824,020.96 47,875,185.83 10.34%
Net profit attributable to owners
of the parent company -29,651,782.19 3,760,110.01 -888.59%
Net cash flow arising from
operating activities 7,001,509.35 4,915,125.37 42.45%
Net cash flow arising from
operating activities per share 0.0146 0.0103 41.75%
Basic earnings per share -0.0618 0.0078 -892.31%
Diluted earnings per share -0.0618 0.0078 -892.31%
Return on equity --- --- ---
Return on equity after deducting
the non-recurring losses and
gains
--- --- ---
Items of non-recurring gains and losses Amount in year-begin to
the end of report period
Other non-operating income and expense excluded the aforesaid items 36,694.79Shenzhen China Bicycle Company (Holdings) Limited The
1st Quarterly Report for 2009(Full Text)
2
Total 36,694.79
Explanations on items of non-recurring gains and losses
Item of non-recurring gains and losses in the report period were mainly obtaining transfer price
differences of property of Zhonghua Garden.
2.2 Total number of shareholders at the end of the report period and shares held by the top ten
shareholders with unrestricted conditions
Unit: Share
Total number of shareholders
at the end of report period 33,864
Shares held by the top ten shareholders with tradable shares
Full Name of shareholder Amount of tradable shares held Type of shares
Shenzhen New Land Tool Consultants
PTE. LTD. 9,857,556 RMB common share
Shanghai (Hong Kong) Wanguo Securities 3,244,130 Domestically listed foreign share
Zhang Huiling 2,028,472 Domestically listed foreign share
TANG JING YUAN 1,924,500 Domestically listed foreign share
Lu Huazhong 1,487,000 Domestically listed foreign share
Qin Yuyan 1,398,560 Domestically listed foreign share
Li Jinling 1,225,702 Domestically listed foreign share
Jiang Lan 1,215,800 Domestically listed foreign share
GUOTAI JUNAN SECURITIES
（HONGKONG） LIMITED 1,151,400 Domestically listed foreign share
Xiao Lizhu 1,127,649 Domestically listed foreign share
§3. Significant events
3.1 Particulars about material changes in items of main accounting statement and financial index,
and explanations of reasons
√Applicable □Inapplicable
Explanation on changes of main financial index in the first quarter of 2009
1. Monetary fund: increased 128.90% compared with that of the period-begin, which was mainly
sales increase of Emmelle Company and receiving account of Agreement of Releasing Investment to
Jiangxi Lihua Industry Co., Ltd. from Hong Kong Dahuan;
2. Notes receivable: decreased 90.17% compared with that of the period-begin, which was mainly
because that notes receivable endorsement were transferred to pay to suppliers;
3. Account paid in advance: decreased 19.19% compared with that of the period-begin, which was
mainly because that the account paid in advance to raw material suppliers decreased;
4. Other account receivable: decreased 28.94% compared with that of the period-begin, which was
mainly receiving account of Agreement of Releasing Investment to Jiangxi Lihua Industry Co., Ltd.
from Hong Kong Dahuan;
5. Account receivable: increased 13.65% compared with that of the period-begin, which was mainly
because sales of Emmelle Company increased;
6. Other current liabilities: increased 10.06% compared with that of the period-begin, which wasShenzhen
China Bicycle Company (Holdings) Limited The 1st Quarterly Report for 2009(Full Text)
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mainly because the Company withdrew interests payable for creditors in the report period;
7. Minority shareholders’ equity: increased 32.12% compared with that of the period-begin, which
was mainly because the subsidiary – Emmelle Company realized profit in the report period;
8. Business tax and extras: decreased RMB 13,400 and 27.21% compared with the same period of
last year, which was mainly because business tax and extras of subsidiary decreased and radix in last
period was less;
9. Management expenses: decreased 55.58% compared with the same period of last year, which was
mainly because there was economic dismissal and paid compensation RMB 7,573,400;
10. Financial expenses: increased RMB 34,322,000 and 333.59% compared with the same period of
last year, which was mainly because RMB appreciation slowed down, and there was no exchange
income of large amount foreign currency liability;
11. Investment income: decreased 100% compared with that the same period of last year, which was
mainly because Agreement of Releasing Investment to Jiangxi Lihua Industry Co., Ltd. was signed in
this period, and there was no investment income of Jiangxi Lihua;
12. Non-operating income: decreased 99.50% compared with the same period of last year, which was
mainly because the Company gained large amount non-operating income by disposing Beijing real
estate in the same period of last year;
13. Non-operating expense: decreased 96.04% compared with the same period of last year, which
was mainly happened in disposing Beijing real estate in the same period of last year;
14. Income tax expenses: decreased 100% compared with that of the period-begin, which was mainly
because the losses in this period were not withdrawn income tax;
15. Net profit: decreased 885.14% compared with the same period of last year, which was mainly
because RMB appreciation slowed down, and there was no exchange income of large amount foreign
currency liability;
16. Net profit attributed to shareholders of parent company: decreased 888.59% compared with the
same period of last year, which was mainly because RMB appreciation slowed down, and there was
no exchange income of large amount foreign currency liability;
17. Gains and Losses of minority shareholders: was mainly because the subsidiary–Emmelle
Company realized profit in this period.
3.2 Analysis and explanation of significant events and their influence and solutions
√Applicable □Inapplicable
I. Explanations of the Board of Directors about 2008 Financial Report of the Company with
disclaimer of opinions issued by Shenzhen Pengcheng Certified Public Accountants Co., Ltd.:
Due to that the debt reorganization work of the Company had not been completely finished in 2008,
so risk of bearing huge debt still remained with many significant uncertainties. The CPAs was not
able to offer opinion on the financial debt, tax payable, contingent proceedings, lawsuits and
sustainable operation.
For that, the Board of the Company made the following explanation:
1. Financial debt
Shenzhen Pengcheng CPAs held that: the letters replied from the financial creditors for the inquiry
showed that the Company missed to record an interest balance totaling to RMB 265,875,786.92, and
some letters were replied without confirmation on interest for the principal of loans totaling to RMB
114,558,000.00, and principal of loans which haven’t been replied totaled to RMB 194,255,951.99,
so it was not available to confirm influence on financial statement by financial debt.
The Company provided explanation in Note 13.1 for details of interest confirmation balance: when
some creditors implemented the document ((2004) No.6) released by China Committee on BankShenzhen China
Bicycle Company (Holdings) Limited The 1st Quarterly Report for 2009(Full Text)
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Supervision, they had different understanding on this document with the Company. The document
noticed that: Bank of China and other 10 financial organizations stop calculating the interest of the
Company for 3 years since Jan 1st of 2002 and at the same time, exempt all the interest payable of the
Company (including penalty interest and compound interest) occurred before Dec 31st of 2001.
Some assets management companies and banks considered that the Company was expected to return
the interest exempted and stop-calculated, and some assets management companies had not
confirmed the proceeding of interest calculation. The Company had transferred all the interest of
loans payable owed before Dec 31st of 2001, RMB 357,993,665.24, (including penalty interest and
compound interest) to capital public reserve. Interest was stopped with calculation from Jan 1st of
2002 to Dec 31st of 2004. The exempt term was due on Dec 31st of 2004. The Company held it was
not necessary for him to return the interest exempted and stop-calculated, so when the term was due,
the Company started to withdraw interest according to normal loan for those interests which needed
to be returned. The stop-calculated interest and compound interest from Jan 1st of 2002 to Dec 31st of
2004 was not accrued.
Besides, the financial debt of the Company was formed in history which had occurred for a long time
and the amount of period–end had not changed for years. Body qualification of some creditors had
been transferred and the particular personnel for handling had also changed, so the creditors needed
time to check clearly the amount of creditor and debt of both involved parties and that was why some
creditors had not replied the letters to confirm.
The Company would continuously advance the account-check work with the relevant creditors of
financial debt, trying as soon as possible to check clearly the interest on principal of the financial
debt. Once progress is made, relevant information would be disclosed according to relevant
regulation.
2. Issues on tax payable
Shenzhen Pengcheng Certified Public Accountants Co., Ltd. thought that: in the audit process, the
CPAs implemented audit procedures including inspection and inquiry, inquiring book tax amount
payable, custom guarantee and penalty balance totaling to RMB 118,292,319.46. Until the audit
report day, no reply has been received, so it was impossible for us to confirm the influence on
financial statement of the Company.
Due to the Company’s tax payable was formed in the past, which had a long time, there was no
newly-increased tax payable in the report period, forming reasons were complex, personnel of
specific affairs had changed, and tax department needed time to check clear the debts rights and
amounts of both sides, therefore, we are not able to receive confirmation letter from tax department.
According to the regulations in Administration of Tax Collection regulated by the State, it is possible
to repay the penalties and overdue fine. The Company will continue to follow up the work of
checking account of tax department, check clear the amount of tax payable as soon as possible, and
will disclose information according to the requirements of relevant regulations if there is some
progress.
3. Contingent events and lawsuits
Shenzhen Pengcheng Certified Public Accountants believed that: card information for loans of the
Company was not accordant because of system updating and other seasons; during the auditing, the
CPAs made field verification in relevant courts involved in lawsuits for external guarantee and
overdue loans of the Company as substitute audit procedure, while no confirmation document had
been obtained from the relevant courts. Besides, due to that it was hard to implement other effective
audit procedures, it was unable for us to judge whether the Company had disclosed complete
contingent events and lawsuits, and impacts on its financial statement.
The historically formed loan and guarantee lawsuit had existed rather long time; in the report
period,Shenzhen China Bicycle Company (Holdings) Limited The 1st Quarterly Report for 2009(Full Text)
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there was no newly-added undisclosed guarantee events and lawsuits; part courts in charge of those
lawsuits changed, and specific responsible people also altered; the court needs time to check details
and amount of the case, so the court didn’t write back for confirmation. The Company will continue
follow up the check work by certified public accountants with related courts, and checks clear the
contingent events and lawsuits as soon as possible. If there is any progress, information disclosure
will be made according to requirements of relevant regulations.
4. Matters on continuous operations
Shenzhen Pengcheng Certified Public Accountants thought that, the Company’ asset could seriously
not offset the debt; the measures on the reconciliation procedure of the bankruptcy to settle the debts
had no material progress and could not be able to get adequate and proper audit evidence to confirm
it could effectively improve the continuous operations of the Company; thus, we could not judge
whether the Financial Report 2008 prepared by the Company based on imagined continuous
operations was proper.
Since March 2003, the promotion on debt restructuring by the former largest creditor of the
Company-China Huarong Asset Management Corporation acquired breakthrough development, the
Plan on Reorganization of Shenzhen China Bicycle Company (Holdings) Limited has obtained the
approval from relevant department such as China Banking Regulatory Commission, in which all the
interests of the financial debts the Company owed ended Dec. 31, 2004 were exempted and stopped
interest calculation , and it was under the stage of implementation.
The Company and International Finance Corporation signed Reconciled Agreement on Mar 29th of
2007, in which it was agreed to settle all the credits and liabilities between the two parties with USD
equivalent to RMB 2 million. The liabilities amount was consisted of principal approximately
amounting to USD 3.87 million and an accrued interest approximately amounting to RMB 42.78
million. The two largest creditors of the Company-Shenzhen Guocheng Energy Investment
Development Co., Ltd. and Guangdong Sunrise Holdings Co., Ltd. agreed to stop calculation of
interest of consolidated loan of RMB 69,558,600 for the whole year of 2007, and RMB 66,226,800
for 2008. The interest would also not be collected in future.
Besides progress is made in debt restructure, the Company also makes continuous growth in its main
operation and the main operation continues to make profit. Payment pressure of the Company in
short-term has been sharply brought down; the lasting operation ability has been improved
comparatively.
On Dec. 30, 2006, China Huarong Asset Management Corporation transferred its creditor right to
Shenzhen Guocheng Energy Investment Development Co., Ltd. After the change of the largest
creditor, the former largest creditor China Huarong Asset Management Corporation applied to
Shenzhen Intermediate People’ Court for bankruptcy of the Company on August 1, 2005, planning to
settle the debts of the Company completely through bankruptcy and reform measures; the new
creditor Shenzhen Guocheng Energy Investment Development Co., Ltd. was responsible for
promoting the restructuring works on relevant debts and reorganization, and speeded up making
scheme of debt restructuring and got certain development.
The Board of the Company believed that: as the debt and asset restructure of the Company
continuously made progress, together with the continuous growth of the Company’s performance, its
operation, operation status and sustainable operation ability would be improved further.
II. Event on Share Merger Reform
In the report period, the Company tried to promote the Share Merger Reform. Proposal of Share
Merger Reform was passed in Shareholders’ General Meeting on Share Merger Reform of A Share
Market held on Feb. 1, 2007, and it also got replies from Ministry of Commerce, PRC SZNo.1343
[2007] and Approval of Adding Total Capital Shares of Shenzhen China Bicycle (Holdings) Co., LtdShenzhen
China Bicycle Company (Holdings) Limited The 1st Quarterly Report for 2009(Full Text)
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from Shenzhen Commerce and Industry Bureau SMGZFu No.2257 [2007] in which the Share
Merger Reform Prospectus passed in Shareholders’ General Meeting of the Company held in Feb. 1,
2007. According to Working Guidelines on Share Merger Reform for Listed Companies, related
Share Merger Reform procedures are under transaction in Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited.
3.3 Implementations of commitments by the Company, shareholders and actual controller
□Applicable √Inapplicable
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation of reason
□Applicable √Inapplicable
3.5 Other significant events which need explanations
3.5.1 Particulars about securities investment
□Applicable √Inapplicable
3.5.2 Registration form for receiving research, communication and interview in the report period.
Date Place Way The received
parties Contents discussed and materials supplied
Jan.-March, 2009 Office of the
Company
Communications by
telephone
Tradable
shareholder
Progresses of Share Merger Reform and
debts restructuring of the Company
3.5.3 Particulars about the explanations on other significant events
√Applicable □Inapplicable
I. Particulars about event on the progress of the external investment
The Company signed Affiliated Agreement on investing Jiangxi Lihua Industrial Co., Ltd. with
Shareholder-Hong Kong Dahuan Group Co., Ltd.(hereinafter refers to be as Hong Kong Dahuan) on
June 23, 1993. Considering that the aforementioned investment of the Company did not yield any
profit until now, thus, with friendly negotiations between Hong Kong Dahuan and the Company, the
Company signed Agreement on Releasing Affiliated Agreement with Hong Kong Dahuan on Jan. 20,
2009. The Company will take back investment account amounting to RMB 30,740,000 within 2
years and 6 months which had no influences on the gains/losses in the report year of the
Company(for details, please see the notice of No. 2009-006). Ended the report period, the Company
accumulatively received contract account amounting to RMB 10 million.
II. Particulars about event on stopping calculating debts interests in this year by creditor
The Company received Reply Letter on Applying to Stop Calculating Debts Interests in Year 2009 of
the Company from the first largest shareholder and creditor- Shenzhen Guocheng Energy Investment
Development Co., Ltd.(hereinafter refers to be as “Guocheng Energy”) on March 16, 2009:
“Guocheng Energy” agreed to stop calculating whole year interests for year 2009 on the Renminbi
credit rating 9,124,618.59 and US dollars 84,797,624.57 of the Company held by it, the total amount
for the whole year was predicted to be RMB 47,662,500. The aforementioned interests were not
withdrawn in the following years.
The Company has published the aforementioned events on March 18, 2009, now the supplementary
explanations were as followings:
In accordance with the regulations on Notice of Well Implementing Accounting Standards for
Business Enterprise on the Works of 2008 Annual Report by the Letter No. CK [2008]60 fromShenzhen China
Bicycle Company (Holdings) Limited The 1st Quarterly Report for 2009(Full Text)
7
Ministry of Finance: “ if accepting the direct or indirect donations from the controlling shareholders
or the subsidiaries of the controlling shareholder, judge the capitalization input on enterprise
belonging to controlling shareholders from the economic substances which should be the Equity
Transaction, and relevant income should be recorded in owners’ equity(capital public reserve).”
Guocheng Energy stopped to calculated the interests of debts of this year which would be reckoned
into financial expense of the Company while calculating the interest payable reserve and the total
amount for the whole year was predicted to be RMB 47,662,500, meanwhile, gains arising from
stopping calculating the interests would be reckoned into owners’ equity(capital public reserve), and
the total amount for the whole year was predicted to be RMB 47,662,500
§4. Appendix
4.1 Balance sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited March 31, 2009 Unit: RMB
Balance at Items Merger pePriaorde-netn Cd ompany MerBgaelra n ce at yePara-rbeengt iCn ompany
Current assets:
Monetary funds 23,088,112.90 430,735.43 10,086,599.53 417,444.51
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable 531,830.00 5,408,792.00
Accounts receivable 354,671.13 136,929,234.34 385,033.41 136,120,228.45
Accounts paid in advance 407,644.41 504,440.40
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 29,980,921.07 82,299,769.92 42,193,937.90 87,659,723.49
Purchase restituted finance
asset
Inventories 38,880,632.97 26,109,914.12 36,197,343.93 26,922,910.94
Non-current asset due within
one year
Other current assets
Total current assets 93,243,812.48 245,769,653.81 94,776,147.17 251,120,307.39
Non-current assets:
Granted loans and advances
Finance asset available for
sales
Held-to-maturity securities
Long-term account receivable
Long-term equity investment 2,619,840.50 2,619,840.50 2,619,840.50 2,619,840.50
Investment property 10,149,867.73 10,149,867.73 10,311,261.40 10,311,261.40
Fixed assets 53,291,057.12 52,662,201.07 56,010,305.12 55,334,097.37
Construction in progress
Engineering materialShenzhen China Bicycle Company (Holdings) Limited The 1st Quarterly Report for 2009(Full Text)
8
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 26,964,435.83 26,964,435.83 27,180,151.34 27,180,151.34
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset
Other non-current asset
Total non-current asset 93,025,201.18 92,396,345.13 96,121,558.36 95,445,350.61
Total assets 186,269,013.66 338,165,998.94 190,897,705.53 346,565,658.00
Current liabilities:
Short-term loans 399,711,710.50 338,753,765.51 399,661,355.35 338,713,085.90
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable
Accounts payable 134,974,613.52 324,962,929.98 130,714,884.86 324,940,555.98
Accounts received in advance 24,245,190.51 14,605,306.04 21,333,035.66 14,605,306.04
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 1,628,284.60 1,492,351.96 1,686,297.83 1,550,365.19
Taxes payable 95,371,119.68 94,314,872.25 95,399,029.08 94,220,632.13
Interest payable
Dividend payable
Other accounts payable 162,323,281.80 130,850,465.15 168,604,764.50 134,698,784.49
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due
within 1 year 873,203,635.81 873,203,635.81 873,090,594.28 873,090,594.28
Other current liabilities 130,894,943.61 130,845,364.77 118,929,914.04 118,881,087.74
Total current liabilities 1,822,352,780.03 1,909,028,691.47 1,809,419,875.60 1,900,700,411.75
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 184,133,984.92 184,133,984.92 184,133,984.92 184,133,984.92
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 184,133,984.92 184,133,984.92 184,133,984.92 184,133,984.92Shenzhen China Bicycle Company (Holdings)
Limited The 1st Quarterly Report for 2009(Full Text)
9
Total liabilities 2,006,486,764.95 2,093,162,676.39 1,993,553,860.52 2,084,834,396.67
Owner’s equity (or shareholders’
equity):
Paid-in capital (or share
capital) 479,433,003.00 479,433,003.00 479,433,003.00 479,433,003.00
Capital public reserve 422,854,235.31 422,854,235.31 410,893,564.33 410,893,564.33
Less: Inventory shares
Surplus public reserve 32,673,227.01 32,673,227.01 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -2,755,710,957.92 -2,689,957,142.77 -2,726,059,175.73 -2,661,268,533.01
Balance difference of foreign
currency translation
Total owner’s equity attributable to
parent company -1,820,750,492.60 -1,754,996,677.45 -1,803,059,381.39 -1,738,268,738.67
Minority interests 532,741.31 403,226.40
Total owner’s equity -1,820,217,751.29 -1,754,996,677.45 -1,802,656,154.99 -1,738,268,738.67
Total liabilities and owner’s equity 186,269,013.66 338,165,998.94 190,897,705.53 346,565,658.00
4.2 Profit statement
Prepared by Shenzhen China Bicycle Company (Holdings) Limited Jan.-Mar., 2009 Unit: RMB
Amount i Items Merger n thiPsa preenrito Cd ompany MerAgmero u nt in lasPta preenrito Cd o mpany
I. Total operating income 52,824,020.96 3,064,884.12 47,875,185.83 4,878,927.60
Including: Operating income 52,824,020.96 3,064,884.12 47,875,185.83 4,878,927.60
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 82,382,983.03 31,790,188.67 52,405,219.78 9,501,606.64
Including: Operating cost 50,626,053.58 2,078,119.99 46,728,919.74 5,244,515.51
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expense
Operating tax and extras 35,961.65 49,402.85
Sales expenses 1,107,952.46 242,795.77 1,171,759.19 299,130.78
Administration expenses 6,524,401.82 5,386,265.78 14,688,542.93 14,167,269.19
Financial expenses 24,088,613.52 24,083,007.13 -10,233,404.93 -10,209,308.84
Losses of devaluation of
asset
Add: Changing income of
fair value(Loss is listed with “-”)
Investment income (Loss is
listed with “-”) -187,559.64 -187,559.64Shenzhen China Bicycle Company (Holdings) Limited The 1st
Quarterly Report for 2009(Full Text)
10
Including: Investment
income on affiliated company and
joint venture
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss is
listed with “-”) -29,558,962.07 -28,725,304.55 -4,717,593.59 -4,810,238.68
Add: Non-operating income 48,176.13 48,176.13 9,616,484.60 9,616,484.60
Less: Non-operating expense 11,481.34 11,481.34 289,734.86 89,322.93
Including: Disposal loss of
non-current asset
IV. Total Profit (Loss is listed
with “-”) -29,522,267.28 -28,688,609.76 4,609,156.15 4,716,922.99
Less: Income tax 849,046.14 849,046.14
V. Net profit (Net loss is listed
with “-”) -29,522,267.28 -28,688,609.76 3,760,110.01 3,867,876.85
Net profit attributable to
owner’s equity of parent
company
-29,651,782.19 3,760,110.01
Minority shareholders’ gains
and losses 129,514.91
VI. Earnings per share
i. Basic earnings per share -0.0618 0.0078
ii. Diluted earnings per share -0.0618 0.0078
4.3 Cash flow statement
Prepared by Shenzhen China Bicycle Company (Holdings) Limited Jan.-Mar., 2009 Unit: RMB
Amount i Items Merger n thiPsa preenrito Cd ompany MerAgmero u nt in lasPta preenrito Cd o mpany
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor
services
37,590,208.52 34,490,206.19 3,809,904.34
Net increase of customer
deposit and interbank deposit
Net increase of loan from
central bank
Net increase of capital
borrowed from other financial
institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Insured savings and net
increase of investment
Net increase of disposal of
transaction financial asset
Cash received from interest,
commission charge and
commission
Net increase of capital
borrowedShenzhen China Bicycle Company (Holdings) Limited The 1st Quarterly Report for 2009(Full Text)
11
Net increase of returned
business capital
Write-back of tax received
Other cash received
concerning operating activities 5,762,699.75 4,498,576.34 60,893.98 1,683,490.62
Subtotal of cash inflow
arising from operating activities 43,352,908.27 4,498,576.34 34,551,100.17 5,493,394.96
Cash paid for purchasing
commodities and receiving labor
service
25,615,020.46 22,129,990.75 1,043,237.63
Net increase of customer
loans and advances
Net increase of deposits in
central bank and interbank
Cash paid for original
insurance contract compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
workers 4,172,659.08 285,195.24 3,762,954.21 937,503.39
Taxes paid 1,129,333.41 692,125.29 1,157,947.99 597,065.70
Other cash paid concerning
operating activities 5,434,385.97 3,507,964.89 2,585,081.85 2,886,936.63
Subtotal of cash outflow
arising from operating activities 36,351,398.92 4,485,285.42 29,635,974.80 5,464,743.35
Net cash flows arising from
operating activities 7,001,509.35 13,290.92 4,915,125.37 28,651.61
II. Cash flows arising from
investing activities:
Cash received from
recovering investment
Cash received from
investment income
Net cash received from
disposal of fixed, intangible and
other long-term assets
10,233,724.60
Net cash received from
disposal of subsidiaries and other
units
Other cash received
concerning investing activities 6,000,000.00
Subtotal of cash inflow from
investing activities 6,000,000.00 10,233,724.60
Cash paid for purchasing
fixed, intangible and other
long-term assets
46,800.00 35,400.00
Cash paid for investment
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activitiesShenzhen China Bicycle Company (Holdings) Limited The 1st Quarterly Report for 2009
(Full Text)
12
Subtotal of cash outflow from
investing activities 46,800.00 35,400.00
Net cash flows arising from
investing activities 6,000,000.00 10,186,924.60 -35,400.00
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Including: Cash received
from absorbing minority
shareholders’ investment by
subsidiaries
Cash received from loans
Cash received from issuing
bonds
Other cash received
concerning financing activities
Subtotal of cash inflow from
financing activities
Cash paid for settling debts
Cash paid for dividend and
profit distributing or interest
paying
Including: Dividend and
profit of minority shareholder paid
by subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from
financing activities
Net cash flows arising from
financing activities
IV. Influence on cash due to
fluctuation in exchange rate 4.02
V. Net increase of cash and cash
equivalents 13,001,513.37 13,290.92 15,102,049.97 -6,748.39
Add: Balance of cash and
cash equivalents at the period
-begin
10,086,599.53 417,444.51 14,062,198.43 477,660.27
VI. Balance of cash and cash
equivalents at the period -end 23,088,112.90 430,735.43 29,164,248.40 470,911.88
4.4 Auditor’ report
Auditor’s opinions: Un-audited
The Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
April 25, 2009
