Shenzhen International Enterprise Co., Ltd.
The First Quarterly Report 2010
§1 Important Notes
1.1 The Board of Directors, the Supervisory Committee, as well as directors,
supervisors and senior executives of Shenzhen International Enterprise Co., Ltd.
(hereinafter referred to as the Company) warrant that this report does not contain any
false or misleading statements or omit any material facts, and will take all
responsibilities, individual and joint for the authenticity, accuracy and completeness
of the report.
1.2 All directors attended the Board meeting in person and reviewed and examined
the first quarterly report 2010 except the following directors.
Name Office title Reason Name of assignee
Xiao Guangsheng Director Business trip Li Jingquan
Li Mugui Director Business trip Li Jingquan
Song Shengjun Director Business trip Li Jingquan
1.3 The first quarterly financial report has not been audited.
1.4 Chairman of the Board of the Company Mr. Li Jinquan, President Mr. Tang Dajin,
and Vice President as well as Person in charge of Accounting and Chief Financial
Officer Mr. Zhou Xiaoliang hereby confirm that the Financial Report of the Quarterly
Report is true and complete.
§2 Company Profile
2.1 Main accounting data and financial indexes
Unit: RMB Yuan
As at 31 Mar. 2010 As at 31 Dec. 2009 Increase/decrease (%)
Total assets (Yuan) 1,461,450,018.03 1,451,667,225.56 0.67%
Owner’s equity attributable to shareholders of
listed company (Yuan)
215,040,857.28 225,778,093.67 -4.76%
Share capital (Share) 220,901,184.00 220,901,184.00
Net assets per share attributable to shareholders
of listed company (Yuan/share)
0.97 1.02 -4.90%
Jan.-Mar. 2010 Jan.-Mar. 2009 Increase/decrease (%)
Operating revenue (Yuan) 2,549,889.36 3,724,315.37 -31.53%
Net profit attributable to shareholder of listed
company (Yuan)
-10,737,236.39 9,012,240.22 -219.14%Net cash flow arising from operating activities
(Yuan)
29,071,436.22 -7,602,576.75
Net cash flow per share arising from operating
activities (Yuan/share)
0.13 -0.03
Basic earnings per share (Yuan/share) -0.05 0.04 -225.00%
Diluted earnings per share (Yuan/share) -0.05 0.04 -225.00%
Weighted average return on equity (%) -4.87% 3.95% -8.82%
Weighted average return on equity after
deducting non-recurring gains and losses (%)
-4.05% -1.89% -2.16%
Items of non-recurring gains and losses Amount from the year-begin to the end of report period
Gains and losses from entrusting loan -3,596,088.94
Total -3,596,088.94
Explanation on significant gains and losses
Fine for breach of loan contract for projects
2.2 Total number of shareholders as at the end of reporting period and shares held by
the top ten shareholders not subject to trading moratorium
Total number of shareholders as at the end of
reporting period
21,415
Particulars about shares not subject to moratorium held by the top ten shareholders
Full name of shareholder
Number of shares not subject
to trading moratorium
Type of share
Multi Profit Asia Pacific Investment Ltd 30,264,192 Domestically listed foreign shares
Shenzhen Special Economic Zone Development
(Group) Co., Ltd.
21,566,857 RMB ordinary shares
First Shanghai Securities Limited 16,473,541Domestically 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. 5,816,012 RMB ordinary shares
Fang Ruiping 2,534,800 RMB ordinary shares
Chen Shaolan 2,528,341 RMB ordinary shares
Chen Shu 2,149,327 RMB ordinary shares
Zeng Haixing 2,148,715 RMB ordinary shares
§3 Significant Events
3.1 Particulars about large-margin change in items of the main accounting statement
and financial index, as well as the reason
√Applicable □Inapplicable
(1) Long-term borrowings decreased 83% over the end of last year, mainly because
mature loan increased and long-term borrowings decreased.(2) Business tax and surcharges increased 876% year-on-year, mainly because tax
paid in this period increased.
(3) Sales expenses decreased 57% year-on-year, mainly because selling and sales
expensed decreased.
(4) Administrative expenses increased 50% year-on-year, mainly because lease
expenses increased.
(5) Financial expenses increased 81% year-on-year, mainly because loan interest
cannot be capitalized and expense increased.
(6) Operating profit decreased 381% year-on-year, mainly because income decreased
and expense increased.
(7) Total profit decreased 371% year-on-year, mainly because income decreased and
expense increased.
(8) Cash received relating to other operating activities in this period increased 9283%
year-on-year, mainly because external borrowings increased.
(9) Cash paid for purchase of goods and accepting labor service in this period
increased 1789% year-on-year, mainly because payment for projects increased.
(10) Taxes paid in this period increased 82% year-on-year, mainly because taxes paid
increased.
(11) Cash for acquisition of fixed assets, intangible assets and other long-term assets
in this period increased 100% year-on-year, mainly because the Company increased
investment on purchase of assets.
(12) Cash received from borrowings in this period increased 150% year-on-year,
mainly because loan increased.
(13) Other cash received relating to financing activities increased 100% year-on-year,
mainly because the Company received loan discount.
(14) Cash paid for debts in this period increased 288% year-on-year, mainly because
repayment of loan increased.
(15) Other cash paid for other financing activities decreased 100% year-on-year,
mainly because financing expenses decreased.
3.2 Progress of the significant events and its effects, as well as analysis and on
solutions
□Applicable √Inapplicable
3.3 Implementation of commitments made by the Company, shareholders and the
actual controller
√Applicable □Inapplicable
Commitment Commitment maker Content Implementation
Commitments concerning share merger
reform
－ － －
Commitments concerning share trading
moratorium
－ － －
Commitments made in the acquisition Multi Profit Asia Pacific will not reduce Thereafter, they transferred the equitiesreport or the report on equity changes Investment Limited, and
its controlling shareholder
Mr. Zhang Jing, as well as
acting-in-concert person
Mr. Zhuang Huabing
the shares
acquired this
time within 12
months
of Multi Profit Asia Pacific Investment
Limited. Shenzhen Stock Exchange
denounced openly Multi Profit Asia
Pacific Investment Limited, and Zhang
Jing and Zhang Huabing.
Commitments made when conducting
significant asset reorganization
－ － －
Commitments made in the issuance － － －
Other commitments (including
supplementary ones)
－ － －
3.4 Warnings of possible losses or major changes of the accumulative net profit
achieved during the period from the beginning of the year to the end of the next
reporting period compared with the same period of last year according to prediction,
as well as the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities investment
□Applicable √Inapplicable
3.5.2 Research, communication and interviews received in the reporting period
In the reporting period, there was no field investigation, communication by telephone
and written inquisition from investors.
3.5.3 Other significant events
□Applicable √Inapplicable
3.6 Investment on derivative products
□Applicable √Inapplicable
3.6.1 Derivative products held as at the end of the report period
□Applicable √Inapplicable
§4 Attachment
4.1 Balance Sheet
Prepared by Shenzhen International Enterprise Co., Ltd Unit: RMB Yuan
31 Mar. 2010
Balance at the period-end Balance at the year-begin
Items
Consolidation Parent company Consolidation Parent company
Current assets:
Monetary funds 28,564,236.83 3,414,876.73 18,673,470.06 252,948.06
Settlement fund reserve
Dismantle fundTransaction financial asset
Notes receivable
Account receivable 790,644.06 1,399,439.55
Account paid in advance 381,095.00 180,000.00 381,095.00 180,000.00
Premium receivables
Receivables from reinsures
Reinsurance contract reserve receivables
Interest receivable
Dividend receivable
Other account receivable 6,331,078.26 165,531,688.00 8,271,682.45 175,779,689.75
Financial assets purchased under agreements to
resell
Inventories 1,351,362,754.31 1,347,795,365.80
Non-current assets due within 1 year
Other current assets
Total current assets 1,387,429,808.46 169,126,564.73 1,376,521,052.86 176,212,637.81
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 65,944,253.87
Investing property 1,425,573.97 1,072,167.20 1,445,567.83 1,084,763.51
Fixed asset 65,859,372.76 15,914,184.02 66,950,342.03 16,311,714.31
Project in construction
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets
Development expense
Goodwill
Long-term expense to be apportioned 165,000.00 165,000.00 180,000.00 180,000.00
Deferred tax assets
Other non-current assets
Total of non-current assets 74,020,209.57 83,095,605.09 75,146,172.70 83,520,731.69
Total assets 1,461,450,018.03 252,222,169.82 1,451,667,225.56 259,733,369.50
Current liabilities:
Short-term borrowings 6,000,000.00
Borrowing from Central Bank
Deposits and due to banks and other financial
institutions
Placements from banks and other financialinstitutions
Transaction financial liabilities
Notes payable
Account payable 516,970,072.04 570,599,631.60
Account received in advance 48,944,736.75 2,950,765.00 46,073,971.75 80,000.00
Financial assets sold under agreements to
repurchase
Handling charges and commission payable
Employee’s compensation payable 3,265,737.15 1,069,731.58 4,034,257.43 1,385,993.95
Tax payable -270,864.77 2,492,481.96 4,782.62 2,497,675.52
Interest payable 413,498.25 768,248.25
Dividend payable 5,127,701.36 5,127,701.36 5,127,701.36 5,127,701.36
Other account payable 335,282,818.99 73,915,984.90 238,935,399.95 68,613,377.28
Due to reinsures
Insurance contract reserve
Customer deposits
Amount payables under security underwriting
Non-current liabilities due within 1 year 384,000,000.00 184,000,000.00
Other current liabilities
Total current liabilities 1,293,733,699.77 85,556,664.80 1,055,543,992.96 77,704,748.11
Non-current liabilities:
Long-term borrowings 44,000,000.00 254,000,000.00
Debentures payable
Long-term payables
Specific purpose account payables
Provisions for contingent liabilities 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Deferred tax liabilities
Other non-current liabilities
Deferred income 926,353.90 1,029,282.11
Total non-current liabilities 50,926,353.90 6,000,000.00 261,029,282.11 6,000,000.00
Total liabilities 1,344,660,053.67 91,556,664.80 1,316,573,275.07 83,704,748.11
Owner’s equity (or shareholders’ equity)
Paid-up 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
Specific reserves
Reserved fund 125,929,834.48 96,841,026.39 125,929,834.48 96,841,026.39
General risk provision
Retained earnings -204,105,508.26 -222,028,149.96 -193,368,271.87 -206,665,033.59
Foreign exchange difference
Total owners’ equity attributable to parent
company
215,040,857.28 160,665,505.02 225,778,093.67 176,028,621.39
Minority interest -98,250,892.92 -90,684,143.18Total owner’s equity 116,789,964.36 160,665,505.02 135,093,950.49 176,028,621.39
Total liabilities and owner’s equity 1,461,450,018.03 252,222,169.82 1,451,667,225.56 259,733,369.50
4.2 Income statement
Prepared by Shenzhen International Enterprise Co., Ltd Unit: RMB Yuan
Jan.-Mar. 2010
Amount as at Jan.-Mar. 2010 Amount as at Jan.-Dec. 2009
Items
Consolidation Parent company Consolidation Parent company
Ⅰ. Total operation revenue 2,549,889.36 34,700.00 3,724,315.37 50,490.00
Including: sales revenue 2,549,889.36 34,700.00 3,724,315.37 50,490.00
Interest income
Premium income
Fee and commission income
Ⅱ. Total operation cost 17,257,786.55 16,022,815.33 12,844,332.21 -1,023,642.37
Including: cost of sales 2,849,103.06 1,807.87 3,833,678.64 2,006.54
Interest expenses
Fee and commission expenses
Payments on surrenders
Net claim expenses
Net amount of withdrawn from the
insurance contract reserve
Policyholder dividends
Amortized reinsurance expenses
Business taxes and surcharges 246,798.80 132,729.19
Selling expenses 143,602.74 330,505.33
Administrative expenses 6,029,731.19 3,107,131.31 4,013,991.53 2,001,155.01
Financial expenses 7,965,596.23 -4,451,589.49 4,533,427.53 -3,026,803.92
Asset impairment loss 22,954.53 17,365,465.64
Add: gain/loss from changes in fair value (“-” for
loss)
Gain/loss from investment (“-” for loss) 750,000.00 750,000.00
Including: investment gains from
affiliated enterprises and joint ventures
Gains/losses from foreign exchange difference
(“-” for loss)
Ⅲ. Operation profit (“-” for loss) -14,707,897.19 -15,988,115.33 -8,370,016.84 1,824,132.37
Add: non-business income 88,040.00 13,326,821.32 13,326,131.20
Less: non-business expense 3,684,128.94 375,001.04 44,372.13 4,235.95
Including: losses from non-current asset
disposal
21,204.01 6,858.89
Ⅳ. Total profit (“-” for loss) -18,303,986.13 -16,363,116.37 4,912,432.35 15,146,027.62
Less: income tax expenses
Ⅴ. Net profit (“-” for loss) -18,303,986.13 -16,363,116.37 4,912,432.35 15,146,027.62
Attributable to owners of parent company -10,737,236.39 -16,363,116.37 9,012,240.22 15,146,027.62Minority interest -7,566,749.74 -4,099,807.87
Ⅵ. Earnings per share
(I) Basic earnings per share -0.05 0.04
(II) Diluted earnings per share -0.05 0.04
Ⅶ. Other comprehensive income
Ⅷ. Total comprehensive income -18,303,986.13 -16,363,116.37 4,912,432.35 15,146,027.62
Attributable to owners of parent company -10,737,236.39 -16,363,116.37 9,012,240.22 15,146,027.62
Attributable to minority shareholders -7,566,749.74 -4,099,807.87
4.3 Cash flow statement
Prepared by Shenzhen International Enterprise Co., Ltd Unit: RMB Yuan
Jan.-Mar. 2010
Amount in this period Amount in the previous period
Items
Consolidation Parent company Consolidation Parent company
1. Cash flows from operating activities
Cash received from sales of goods or rendering
of services
3,142,634.55 34,700.00 3,774,994.23 50,490.00
Deposits from customers and placements with
banks and other financial institutions
Net increase of borrowings from central banks
Net increase of inter-bank loans from other
financial institutions
Cash received against original insurance contract
Net cash received from reinsurance
Net increase of policyholder deposits and
investments
Net increase in disposal of transaction financial
assets
Interest, handling charges and commissions
received
Net increase of placements from banks
Net increase of cash received under repurchasing
Tax and fare refunded
Other cash received from operating activities 94,404,552.37 10,929,471.31 1,006,118.96 3,579,035.38
Sub-total of cash inflows from operating activities 97,547,186.92 10,964,171.31 4,781,113.19 3,629,525.38
Cash paid for goods and services 56,554,686.89 2,994,142.40
Net increase of loans and advances for
customers
Net increase of deposits in central bank, banks
and other financial institutions
Cash paid for original contract claims
Cash paid for interest, fees and commissions
Cash paid for policy dividendsCash paid to and on behalf of employees 4,681,731.67 1,402,339.10 3,634,256.13 872,708.86
Taxes and fares paid 942,615.73 172,022.63 517,495.71 173,356.33
Other cash paid relating to operating activities 6,296,716.41 9,069,881.91 5,237,795.70 32,064,770.44
Sub-total of cash outflows from operating activities 68,475,750.70 10,644,243.64 12,383,689.94 33,110,835.63
Net cash flows from operating activities 29,071,436.22 319,927.67 -7,602,576.75 -29,481,310.25
2. Cash flows from investing activities
Cash received from return of investments
Cash received from investment income
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
2,872,765.00 2,870,765.00 3,926,285.60 3,926,285.60
Net cash received from disposal of subsidiaries
and other operating units
Other cash received from investing activities
Sub-total of cash inflows of investing activities 2,872,765.00 2,870,765.00 3,926,285.60 3,926,285.60
Cash paid for acquiring fixed assets, intangible
assets and other long-term assets
87,529.00 28,764.00
Cash paid for investments
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 87,529.00 28,764.00
Net cash flows of investing activities 2,785,236.00 2,842,001.00 3,926,285.60 3,926,285.60
3. Cash flows of financing activities
Cash received from absorbing investments
Including: Cash received from minority
shareholders of subsidiaries
Cash received from borrowings 15,000,000.00 6,000,000.00
Cash received from bonds issuing
Other cash received relating to financing
activities
270,000.00
Sub-total of cash inflows of financing activities 15,270,000.00 6,000,000.00
Cash paid for settling debts 31,000,000.00 8,000,000.00
Cash paid for distribution of dividends or profit
or reimbursing interest
6,235,905.45 8,579,559.99 219,724.99
Including: dividends or profits paid to minority
shareholders by subsidiaries
Other cash paid relating to financing activities 3,500,000.00
Sub-total of cash outflows of financing activities 37,235,905.45 20,079,559.99 219,724.99
Net cash flows of financing activities -21,965,905.45 -14,079,559.99 -219,724.99
4. Effect of foreign exchange rate changes on cash
and cash equivalents
5. Net increase of cash and cash equivalents 9,890,766.77 3,161,928.67 -17,755,851.14 -25,774,749.64Add: cash and cash equivalents at period-begin 18,673,470.06 252,948.06 68,414,884.06 26,129,141.95
6. Cash and cash equivalents at period-end 28,564,236.83 3,414,876.73 50,659,032.92 354,392.31
4.4 Auditor’s report
Audit opinion: Un-audited
