Shenzhen International Enterprise Co., Ltd.
The Third Quarterly Report 2009
§ 1 Important Notes
1.1 The Board of Directors, the Supervisory Board, directors, supervisors and senior
management staff of Shenzhen International Enterprise Co., Ltd. (hereinafter referred
to as “the Company”) hereby confirm that this report contains no false information,
misleading statements or material omission, and accept, individually and collectively,
the responsibilities for the factuality, accuracy and completeness of the contents of
this report.
1.2 The Third Quarterly Financial Report 2009 has not been audited by a CPA firm.
1.3 Mr. Li Jinquan, Chairman of the Board Directors, Mr. Tang Dajin,
Person-in-charge of the accounting work, and Mr. Zhou Xiaoliang, Person-in-charge
of the accounting department, hereby ensure that the Financial Report enclosed in this
Report is factual and complete..
§2 Company Profile
2.1 Major accounting data and financial indexes
Unit: (RMB) Yuan
As at 30 Sept. 2009 As at 31 Dec. 2008 Increase/decrease（％）
Total assets (RMB) 1,124,415,120.92 1,126,126,509.48 -0.15%
Owners’ equity attributable to
shareholders of listed company
(RMB)
227,975,482.77 218,861,548.42 4.16%
Share capital (share) 220,901,184.00 220,901,184.00 0.00%
assets per share attributable to
eholders of listed company
MB/share)
1.03 0.99 4.04%
Jul.-Sept. 2009
Increase/decrease
over same period
of last year (%)
Jan.-Sept. 2009
Increase/decrease
over same period
of last year (%)
Total operation income (RMB) 3,869,779.07 3.57% 13,105,582.18 20.25%
Net profit attributable to
shareholders of listed company
(RMB)
-1,253,974.76 3.64% 9,113,934.35
Net cash flows generated from - - -43,738,336.66 29.18%operating activities (RMB)
Net cash flows per share generated
from operating activities
(RMB/share)
- - -0.20 28.57%
Basic earnings per share
(RMB/share)
-0.008 0.60% 0.041 21.50%
Diluted earnings per share
(RMB/share)
-0.008 0.60% 0.041 21.50%
Return on net assets (%) -0.84% -0.68% 4.00% 21.00%
Rate of return on net assets after
deducting extraordinary gains and
losses (%)
-1.16% -0.36% -3.44% -0.24%
Unit: (RMB) Yuan
Extraordinary gains and losses
Amount from year-begin to
the end of this report period
Notes
Effect on minority interest -72,438.88
Other items that fit the definition of extraordinary gains and
losses
17,017,764.77
Total 16,945,325.89 -
2.2 Total number of shareholders at period-end and shareholding of top ten
shareholders holding tradable shares
Unit: share
Total number of shareholders at
period-end
25,481
Shareholding of top ten shareholders holding tradable shares
Name of shareholder (full name)
Number of tradable shares held at
period-end
Type of share
MULTI PROFIT ASIA PACIFIC
INVESTMENT LTD.
30,264,192 Domestically listed foreign shares
SHENZHEN SDG CO., LTD. 21,566,857 RMB ordinary shares
FIRST SHANGHAI SECURITIES
LIMITED
16,546,541 Domestically listed foreign shares
SHENZHEN MAOYE EMPORIUM
LTD.
13,577,548 RMB ordinary shares
F.C. (ASIA) HOLDINGS SDN. BHD. 8,215,594 Domestically listed foreign shares
SHENZHEN TAITIAN INDUSTRIAL
DEVELOPMENT CO., LTD.
6,356,012 RMB ordinary shares
HONG KONG MENGXING
INDUSTRIAL CO., LTD.
2,170,200 Domestically listed foreign shares
CREDIT SUISSE SINGAPORE 1,399,673 Domestically listed foreign shares
XIANG FUDING 1,270,293 RMB ordinary shares
YANG JUN 1,206,100 RMB ordinary shares§ 3 Significant Events
3.1 Particulars about major changes of main accounting statement items and financial
indicators, as well as reasons for the changes
√Applicable □Inapplicable
End of report
period
Same period of
last year
Year-on-year
increase/ decrease
(%)
Notes
Monetary funds 22,872,491.62 105,295,609.7 -78% The construction was paid for.
Accounts
receivable
822,876.08 1,250,293.33 -34%
Debts were collected.
Prepayments 392,187 1,319,295 -70% Carried over into inventories
Other receivables 5,099,334.56 19,518,299.61 -74% Debts were collected.
Investment
properties
1,465,561.69 7,426,900.8 -80%
Assets were activated.
Long-term
deferred expenses
195,000 9,588,410.53 -98%
The amortization of the
long-term deferred expenses
came to an end.
Taxes and fares
payable
-195,097.21 302,972.18 -164%
The profit of the property
management subsidiary fell.
Operation cost 11,830,885.33 7,566,900.66 56%
The operation cost of the
property management
subsidiary increased.
Business tax and
surcharges
555,338.42 425,419.89 31%
The income of the property
management subsidiary
increased.
Selling expenses 661,010.65 8,649,686.48 -92%
The sales of real estate
decreased.
Financial
expenses
1,593,651.07 -732,315.32 318%
The loan interest increased.
Non-business
income
16,427,891.35 9,687,594.26 70%
Assets were activated, which
contributed to the income
increase.
Non-business
expenses
69,247.54 388,565.15 -82%
The loss of asset disposal
decreased.
Net profit 2,452,799.7 -7,934,006.09 131%
Assets were activated, which
contributed to the profit growth.
Net cash flows
from investment
activities
8,281,479.6 22,055,406.44 -62%
There were less investment
activities.
Net cash flows
from financing
activities
-10,085,535.38 83,662,272.99 -112%
There were less new loans and
more loans due and repaid.Net increase of
cash and cash
equivalents
-45,542,392.44 43,952,611.61 -204%
There were less new loans and
more loans due and repaid.
3.2 Progress and influence of significant events, as well as the analysis on solutions
√Applicable □Inapplicable
Concerning relevant issues of the equity transfer contract and the house property use
right transfer contract which involved the Company’s holding subsidiaries Shenzhen
Rongfa Investment Co., Ltd. (hereinafter referred to as “Rongfa Company”),
Shenzhen SIEC Property Management Co., Ltd. (hereinafter referred to as “Property
Management Company”) and Shenzhen Baotian Investment & Development Co., Ltd.
(hereinafter referred to as “Baotian Company”), the Company disclosed them in the
Third Quarterly Report 2007, the Semi-Annual Report 2008 and the public notice on
30 Jan. 2008 on Securities Times, Hong Kong Ta Kung Pao and
http://www.cninfo.com.cn
Due to the disputes arising from the execution of the contracts, Rongfa Company and
Property Management Company proceeded against Baotian Company to Shenzhen
Luohu People’s Court. Luohu Court made the judgment for the first trial of the case at
the end of Sept. 2008, which terminated the house property use right transfer contract
between Rongfa Company and Baotian Company and sentenced Baotian Company to
pay about RMB 7 million to the Company. The Company appealed against the
decision. Recently, Guangdong Shenzhen Intermediate People’s Court issued the Civil
Judgment (2008) SZFMWZZ No.2867 (with more details disclosed in the Public
Notice on Significant Lawsuit on Securities Times, Hong Kong Ta Kung Pao and
http://www.cninfo.com.cn dated 29 Oct. 2009). Presently, the case is being executed.
3.3 Fulfillment of commitments made by the Company, shareholders and the actual
controller
√Applicable □Inapplicable
Commitments made Contents of commitments Execution
Commitments
concerning the share
merger reform
- -
Commitments
concerning trading
moratorium on shares
Shenzhen SDG Group Co., Ltd. made the
following commitments in the share merger
reform: The non-tradable shares held by SDG
Group would not be listed for trading or
transferred within 12 months since those shares
became tradable. Upon the expiration of the
aforesaid commitment, SDG Group might list and
sell the originally non-tradable shares held by it in
the stock exchange, but the sold shares would not
exceed 5% of the total shares of SIEC within 12
months, and not exceed 10% within 24 months.
Up until 30 Sept. 2009, the promisors
had met the commitments made by themCommitments made in
the Acquisition Report
or the Report on
Equity Changes
Multi Profit Asia Pacific Investment Ltd., its
actual controller and its concerted-action parties
made a promise that they would not reduce, in the
following 12 months, the 30,264,192 SIEC
B-shares acquired by them.
Up until 30 Sept. 2009, the promisors
had met the commitments made by them.
By the report date, Ms. Zhang Jing, the
actual controller of Multi Profit Asia
Pacific Investment Ltd. (MPAPI) had
transferred the 51% MPAPI equities held
by her to Mr. Zheng Kanghao. (For more
details, please refer to the Public Notice
No.2009-27 disclosed on Securities
Times, Hong Kong Ta Kung Pao and
http://www.cninfo.com.cn dated 20 Oct.
2009.)
Commitments made in
significant asset
reorganization
- -
Commitments made
when issuing shares
- -
Other commitments
(including
supplementary
commitments)
- -
3.4 Warnings of possible losses or major changes of the accumulative net profit
achieved during the period from year-begin to the end of the next report period
compared with the same period of last year, as well as explanation on reasons
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
The Company did not offer capital to its controlling shareholder or its related parties,
and not provide outward guarantees in violation of prescribed procedures.
3.5.1 Researches, interviews and visits received in report period
Date Place Way of reception Visitor
Main discussion and materials
provided by the Company
9 Sept. 2009
Main Meeting Room
of the Company
Field research
Hongyuan
Securities Co.,
Ltd.
Overall operation of the
Company’s main businesses
3.6 Derivatives Investment
□Applicable √Inapplicable
3.6.1 Positions of derivatives investment held by the Company at period-end
□Applicable √Inapplicable§4. Appendix
4.1 Balance sheet
Prepared by Shenzhen International Enterprise Co., Ltd 30 Sep. 2009
Unit: RMB Yuan
Closing balance Opening balance
Item
Consolidation Parent company Consolidation Parent company
Current assets:
Monetary funds 22,872,491.62 351,812.29 68,414,884.06 26,129,141.95
Settlement fund reserve
Dismantle fund
Transaction financial asset
Notes receivable
Account receivable 822,876.08 1,287,719.72
Account paid in advance 392,187.00 180,000.00 816,795.00 180,000.00
Premium receivables
Receivables from reinsurers
Reinsurance contract reserve
receivables
Interest receivable
Dividend receivable
Other account receivable 5,099,334.56 195,821,727.49 5,898,179.41 158,069,588.23
Financial assets purchased
under agreements to resell
Inventories 1,020,572,166.18 965,170,729.88
Non-current assets due
within 1 year
Other current assets
Total current assets 1,049,759,055.44 196,353,539.78 1,041,588,308.07 184,378,730.18
Non-current assets:
Loans and advance
Available for sale financial
assets
Held to maturity investments
Long-term account
receivable
Long-term equity investment 6,570,262.84 65,944,253.87 6,570,262.84 65,944,253.87Investing property 1,465,561.69 1,097,359.82 1,755,450.46 1,365,055.94
Fixed asset 66,425,240.95 16,998,173.69 75,972,488.11 24,754,990.04
Project in construction
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets
Development expense
Goodwill
Long-term expense to be
apportioned
195,000.00 195,000.00 240,000.00 240,000.00
Deferred tax assets
Other non-current assets
Total of non-current assets 74,656,065.48 84,234,787.38 84,538,201.41 92,304,299.85
Total assets 1,124,415,120.92 280,588,327.16 1,126,126,509.48 276,683,030.03
Current liabilities:
Short-term loans 6,000,000.00 8,000,000.00
Loans from central bank
Deposits received and hold
for others
Placements From Banks
Other Financial Institutions
Transaction financial
liabilities
Notes payable
Account payable 230,062,829.14 243,472,627.76
Account received in advance 46,868,971.75 90,000.00 59,411,157.15 13,412,185.40
Financial assets sold under
agreements to repurchase
Handling charges and
commission payable
Employee’s compensation
payable
2,403,269.97 750,020.61 3,357,743.19 1,318,426.30
Tax payable -195,097.21 2,453,718.58 17,096.76 2,453,401.54
Interest payable 610,875.00 1,002,787.50Dividend payable 5,127,701.36 5,127,701.36 5,127,701.36 5,127,701.36
Other account payable 216,439,426.94 43,605,479.35 210,873,595.06 44,692,535.39
Due to reinsurers
Insurance contract reserve
Customer deposits
Amount payables under
security underwriting
Non-current liabilities due
within 1 year
14,978,700.00 14,978,700.00 14,992,300.00 14,992,300.00
Other current liabilities
Total current liabilities 522,296,676.95 67,005,619.90 546,255,008.78 81,996,549.99
Non-current liabilities:
Long-term borrowings 438,000,000.00 418,000,000.00
Bonds payable
Long-term payables
Specific purpose account
payables
Deferred income 11,801,909.16 11,801,909.16 11,801,909.16 11,801,909.16
Provisions for contingent
liabilities
Deferred tax liabilities 1,235,138.52 1,440,994.95
Other non-current liabilities
Total non-current liabilities 451,037,047.68 11,801,909.16 431,242,904.11 11,801,909.16
Total liabilities 973,333,724.63 78,807,529.06 977,497,912.89 93,798,459.15
Owner’s equity (or
shareholders’ equity)
Paid-in capital (or share
capital)
220,901,184.00 220,901,184.00 220,901,184.00 220,901,184.00
Capital surplus 72,315,347.06 64,951,444.59 72,315,347.06 64,951,444.59
Less: Treasury Stock
Special reserves
Surplus reserve 125,929,834.48 96,841,026.39 125,929,834.48 96,841,026.39
General risk provision
Retained earnings -191,170,882.77 -180,912,856.88 -200,284,817.12 -199,809,084.10
Foreign exchange difference
Total owners' equity 227,975,482.77 201,780,798.10 218,861,548.42 182,884,570.88attributable to holding
company
Minority interest -76,894,086.48 -70,232,951.83
Total owner’s equity 151,081,396.29 201,780,798.10 148,628,596.59 182,884,570.88
Total liabilities and owner’s
equity
1,124,415,120.92 280,588,327.16 1,126,126,509.48 276,683,030.03
4.2 Income statement during the reporting period
Prepared by Shenzhen International Enterprise Co., Ltd Jul.-Sep. 2009
Unit: RMB Yuan
Jul.-Sep. 2009 Jul.-Sep. 2008
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 3,869,779.07 25,450.00 3,736,459.52 146,562.00
Including: Sales 3,869,779.07 25,450.00 3,736,459.52 146,562.00
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 8,306,045.67 2,997,626.47 10,588,566.37 6,405,427.68
Including: Cost of sales 3,843,221.33 1,922.96 2,510,880.20 8,665.10
Interests expenses
Service charge and
commission income
Cash surrender value
Claim expenses-net
Provision for insurance
contract reserves-net
Insurance policy dividend
paid
Reinsurance expense
Business taxes and
surcharges
156,774.21 135,092.85
Distribution expenses 3,381,910.73
Administrative expenses 4,908,728.18 2,520,537.06 3,716,473.34 1,558,937.77
Financial costs 247,969.53 -3,656,250.28 844,209.25 -6,070,303.86
Impairment loss -850,647.58 4,131,416.73 10,908,128.67Add: gain/(loss) from change
in fair value (“-” means loss)
Gain/(loss) from investment
(“-” means loss)
Including: income form
investment on affiliated
enterprise and jointly
enterprise
Foreign exchange difference
(“-” means loss)
III. Business profit (“-”
means loss)
-4,436,266.60 -2,972,176.47 -6,852,106.85 -6,258,865.68
Add: non-business income 749,283.80 593,535.60 1,020,915.67 1,009,753.03
Less: non-business expense 2,066.34 269,048.28 62,813.00
Including: loss from
non-current asset disposal
IV. Total profit (“-” means
loss)
-3,689,049.14 -2,378,640.87 -6,100,239.46 -5,311,925.65
Less: Tax expense 7,934.69
V. Net profit (“-” means
loss)
-3,689,049.14 -2,378,640.87 -6,108,174.15 -5,311,925.65
-Attributable to parent
company
-1,908,255.04 -2,378,640.87 -1,209,982.97 -5,311,925.65
-Minority interest -1,780,794.10 -4,898,191.18
VI. Earnings per share
(I) Basic earnings per share -0.008 -0.007 -0.005 -0.024
(II) Diluted earnings per
share
-0.008 -0.007 -0.005 -0.024
VII. Other comprehensive
income
VIII. Total comprehensive
income
-3,689,049.14 -2,378,640.87 -6,108,174.15 -5,311,925.65
Total comprehensive income
attributable to owner of
parent company
-1,908,255.04 -2,378,640.87 -1,209,982.97 -5,311,925.65
Total comprehensive income
attributable to minority
shareholders
-1,780,794.10 -4,898,191.184.3 Income statement from the year-begin to the end of reporting period
Prepared by Shenzhen International Enterprise Co., Ltd Jan.-Sep. 2009
Unit: RMB Yuan
Jan.-Sep. 2009 Jan.-Sep. 2008
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 13,105,582.18 992,460.00 10,898,306.98 422,392.00
Including: Sales 13,105,582.18 992,460.00 10,898,306.98 422,392.00
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 27,770,854.27 -974,828.28 27,889,226.92 19,416,839.95
Including: Cost of sales 11,830,885.33 225,203.38 7,566,900.66 33,136.31
Interests expenses
Service charge and
commission income
Cash surrender value
Claim expenses-net
Provision for insurance
contract reserves-net
Insurance policy dividend
paid
Reinsurance expense
Business taxes and
surcharges
555,338.42 425,419.89
Distribution expenses 661,010.65 8,649,686.48
Administrative expenses 14,121,549.55 6,730,075.08 12,943,838.10 5,752,373.04
Financial costs 1,593,651.07 -10,656,140.88 -732,315.32 -17,584,260.04
Impairment loss -991,580.75 2,726,034.14 -964,302.89 31,215,590.64
Add: gain/(loss) from change
in fair value (“-” means loss)
Gain/(loss) from investment
(“-” means loss)
750,000.00 750,000.00
Including: income form
investment on affiliated
enterprise and jointly
enterpriseForeign exchange difference
(“-” means loss)
III. Business profit (“-”
means loss)
-13,915,272.09 2,717,288.28 -16,990,919.94 -18,994,447.95
Add: non-business income 16,427,891.35 16,183,174.89 9,687,594.26 1,502,932.36
Less: non-business expense 69,247.54 4,235.95 388,565.15 166,513.00
Including: loss from
non-current asset disposal
IV. Total profit (“-” means
loss)
2,443,371.72 18,896,227.22 -7,691,890.83 -17,658,028.59
Less: Tax expense -9,427.98 242,115.26
V. Net profit (“-” means
loss)
2,452,799.70 18,896,227.22 -7,934,006.09 -17,658,028.59
-Attributable to parent
company
9,113,934.35 18,896,227.22 -494,812.78 -17,658,028.59
-Minority interest -6,661,134.65 -7,439,193.31
VI. Earnings per share
(I) Basic earnings per share 0.041 0.086 -0.002 -0.080
(II) Diluted earnings per
share
0.041 0.086 -0.002 -0.080
VII. Other comprehensive
income
VIII. Total comprehensive
income
2,452,799.70 18,896,227.22 -7,934,006.09 -17,658,028.59
Total comprehensive income
attributable to owner of
parent company
9,113,934.35 18,896,227.22 -494,812.78 -17,658,028.59
Total comprehensive income
attributable to minority
shareholders
-6,661,134.65 -7,439,193.31
4.4 Cash flow statement from the year-begin to the end of reporting period
Prepared by Shenzhen International Enterprise Co., Ltd Jan.-Sep. 2009 Unit:
RMB Yuan
This period Last period
Items
Consolidation Parent company Consolidation Parent company
I. Cash flows from operating
activitiesCash received from
sales of goods or rending of
services
13,052,541.04 992,460.00 14,294,615.53 422,392.00
Net increase of deposits
received and held for others
Net increase of loans
from central bank
Net increase of
inter-bank loans from other
financial assets
Cash received against
original insurance contract
Net Cash received from
reinsurance
Net increase of client
deposit and investment
Net increase of disposal
of tradable financial assets
Cash received as
Interests, fees and
commissions received
Net increase of
inter-bank fund received
Cash received under
repurchasing, net
Tax returned
Other cash received
from operating activities
19,826,000.95 5,036,374.74 21,489,985.85 40,968,550.87
Sub-total of cash inflow
from operating activities
32,878,541.99 6,028,834.74 35,784,601.38 41,390,942.87
Cash paid for goods and
services
40,919,091.15 36,101,038.72
Net increase of loans
and advances
Net increase of deposit
in central bank, banks and
other financial institutions
Cash paid for original
contract claimCash paid for interests,
fees and commission
Cash paid for policy
dividend
Cash paid to and for
employees
11,067,966.16 3,355,466.57 10,947,198.69 2,546,688.00
Cash paid for all types
of taxes
3,214,031.79 1,218,307.30 2,511,796.69 791,306.47
Other cash paid relating
to operating activities
21,415,789.55 34,913,498.60 47,989,635.10 53,630,852.59
Sub-total of cash
outflows
76,616,878.65 39,487,272.47 97,549,669.20 56,968,847.06
Net cash outflow in
operating activities
-43,738,336.66 -33,458,437.73 -61,765,067.82 -15,577,904.19
II. Cash Flows from
Investing Activities
Cash received from
return of investments
20,000.00 20,000.00
Cash received from
investment income
Net cash received from
disposal of fixed assets,
intangible assets and other
long-term assets
8,339,798.60 8,339,798.60 6,256,311.44 6,254,941.44
Net cash received from
disposal of subsidiaries and
other operating units
Other cash received
relating to investing activities
Sub-total of cash
inflows of investing activities
8,359,798.60 8,359,798.60 22,256,311.44 22,254,941.44
Cash paid for
acquisition of fixed assets,
intangible assets and other
long-term assets
78,319.00 9,750.00 200,905.00 92,916.00
Net cash received for
disposal of subsidiaries and
other operating units
16,000,000.00 16,000,000.00
Cash paid forinvestments
Net increase of pledge
loans
Net cash paid for
acquisition of subsidiaries
and other operating units
Other cash paid relating
to investing activities
Sub-total of cash
outflows of investing
activities
78,319.00 9,750.00 200,905.00 92,916.00
Net cash inflow from
investing activities
8,281,479.60 8,350,048.60 22,055,406.44 22,162,025.44
III. Cash Flows from
Financing Activities:
Cash received from
investment
Including: Cash
received from minority
shareholders of subsidiaries
Cash received from
borrowings
26,000,000.00 117,000,000.00
Cash received from
bonds issuing
Cash received relating
to financing activities
Sub-total of cash
inflows of financing
activities
26,000,000.00 117,000,000.00
Cash paid for
repayments of borrowings
8,000,000.00 16,823,322.57 16,823,322.57
Cash paid for dividends,
profit distribution or interest
24,325,535.38 668,940.53 16,514,404.44 949,106.24
Including: dividends or
profits paid to minority
shareholders by subsidiaries
Other cash paid relating
to financing activities
3,760,000.00
Sub-total of cash 36,085,535.38 668,940.53 33,337,727.01 17,772,428.81outflows of financing
activities
Net cash inflow from
financing activities
-10,085,535.38 -668,940.53 83,662,272.99 -17,772,428.81
IV. Effect of foreign
exchange rate changes
V. Net decrease in cash and
cash equivalents
-45,542,392.44 -25,777,329.66 43,952,611.61 -11,188,307.56
Add : Opening amount
of cash and cash equivalents
68,414,884.06 26,129,141.95 61,342,998.09 11,369,551.37
VI. Closing balance of cash
and cash equivalents
22,872,491.62 351,812.29 105,295,609.70 181,243.81
4.5 Auditor’s report
Audit opinion: Un-audited
