Stock Abbr.: SZIEC-B Stock Code: 200056 Announcement No.: 2010-35
Shenzhen International Enterprise Co., Ltd.
Summary of Semi-Annual Report 2010
§1. Important Statement
1.1 The Board of Directors, the Supervisory Committee, as well as directors,
supervisors and senior management staff 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
individual and/or joint responsibility for factuality, accuracy and completeness of the
contents of this report.
The Summary of Semi-annual Report 2010 is abstracted from the full text of the
Semi-annual Report 2010, which is published on the Internet website
http://www.cninfo.com.cn in the mean time. Investors are suggested to read the full
text to understand more details.
1.2 The financial report for the first half of 2010 of the Company has not been audited
by a CPA firm.
1.3 Principal of the Company Mr. Li Jinquan, Person-in-charge of the accounting
work Mr. Chen Xiaohai and Person-in-charge of the accounting organization
(Person-in-charge of accounting) Mr. Zhou Xiaoliang hereby confirm that the
Financial Report enclosed in the Semi-Annual Report is true and complete.
§2. Company Profile
2.1 Basic information
Short form of the stock SZIEC, SZIEC-B
Stock code 000056, 200056
Stock exchange listed with Shenzhen Stock Exchange
Secretary to the Board Securities Affairs Representative
Name Cao Jian Wu Xiaoshuang
Contact address Investment & Management Dept., 44/F,
Rongchao Economic and Trading Center,
No.4028 Jintian Road, Futian District,
Shenzhen
Investment & Management Dept., 44/F,
Rongchao Economic and Trading Center,
No.4028 Jintian Road, Futian District,
Shenzhen
Tel. 0755-82222125 0755-82285565
Fax 0755-82285573 0755-82285573
E-mail cj000056@21cn.com zhaiwu2006@21cn.com
2.2 Major financial data and indexes
2.2.1 Major accounting data and financial indexes
Unit: RMB Yuan2
2.2.2 Items of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Items of non-recurring gains and losses Amount Notes (if applicable)
Gain/loss from disposal of non-current assets 2,816,468.43
Other non-operating incomes and expenses besides the items above -5,065,356.57
Effect on minority interest income 2,029,043.59
Total -219,844.55 -
2.2.3 Difference between PRC GAAP and IFRS
□Applicable √Inapplicable
§3 Changes in Share Capital and Particulars about Shareholders
3.1 Changes in share capital
√Applicable □Inapplicable
Unit: share
Before the change Increase/decrease in this time (+, - ) After the change
Number Proportion New shares Bonus Capitalizatio Others Subtota Number Proportion
At the end of the report
period
At the period-end of
last year
Increase/decrease compared with
the period-end of last year (%)
Total assets 1,434,990,062.55 1,451,667,225.56 -1.15%
Owners’ equity attributable to shareholders of list
companies
204,037,277.23 225,778,093.67 -9.63%
Share capital 220,901,184.00 220,901,184.00 0.00%
Net asset per share attributable to shareholders of
list companies (Yuan/share)
0.92 1.02 -9.80%
In the report period
(Jan.-Jun.)
The same period of last
year
Increase/decrease compared with
the same period of last year (%)
Operating revenue 6,003,596.33 9,235,803.11 -35.00%
Operating profit -37,605,701.21 -9,479,005.49
Total profit -39,774,544.55 6,132,420.86 -748.59%
Net profit attributable to shareholders of listed
companies
-21,740,816.44 11,022,189.39 -297.25%
Net profit attributable to shareholders of listed
companies after deducting non-recurring gains and
losses
-21,520,971.89 -5,237,409.15
Basic earnings per share (Yuan/share) -0.0984 0.0499 -297.19%
Diluted earnings per share (Yuan/share) -0.0984 0.0499 -297.19%
Net return on equity (%) -10.12% 4.79% -14.91%
Net cash flow from operating activities 14,066,656.87 -21,169,359.11
Net cash flow from operating activities per share
(Yuan/share)
0.06 -0.103
shares n of public
reserves
l
I. Shares subject to
trading moratorium
320,760 0.15% 320,760 0.15%
1. Shares held by the state
2. Shares held by
state-owned corporation
3. Shares held by other
domestic investor
Including: shares held by
non-state-owned domestic
corporation
Shares held by
domestic natural person
4. Shares held by
foreign investors
Including: Shares held by
foreign corporation
Shares held by
foreign natural person
5. Shares held by senior
executives
320,760 0.15% 320,760 0.15%
II. Shares not subject to
trading moratorium
220,580,424 99.85% 220,580,424 99.85%
1. RMB ordinary shares 118,892,232 53.82% 118,892,232 53.82%
2. Domestically listed
foreign shares
101,688,192 46.03% 101,688,192 46.03%
3. Foreign shares listed in
domestic
4. Others
III. Total shares 220,901,184 100.00% 220,901,184 100.00%
3.2 Shares held by the top ten shareholders and top ten shareholders holding shares
not subject to trading moratorium
Unit: share
Total shareholders 18,235
Particulars about shares held by the top ten shareholders
Name of shareholders
Nature of
shareholders
Shareholdi
ng ratio
Total shares
held
Number of shares held
subject to trading
moratorium
Shares pledged or
frozen
Multi Profit Asia Pacific Investment
Ltd
Foreign corporation 13.70% 30,264,192 0 0
Shenzhen Special Economic Zone
Development (Group) Co., Ltd.
State-owned
corporation
9.76% 21,566,857 0 10,780,0004
UOB Investment (China) Limited Foreign corporation 7.03% 15,528,941 0 0
Shenzhen Maoye Emporium Ltd
Domestic
non-state-owned
corporation
6.15% 13,577,548 0 0
Zhong Zhiqiang
Foreign natural
person
3.72% 8,215,594 0 0
Shenzhen Taitian Industrial
Development Co., Ltd.
Domestic
non-state-owned
corporation
2.63% 5,816,012 0 0
Chen Qiaoling
Domestic natural
person
1.41% 3,109,255 0 0
Fang Ruiping
Domestic natural
person
1.15% 2,534,800 0 0
Chen Shaolan
Domestic natural
person
1.14% 2,528,341 0 0
Chen Shu
Domestic natural
person
0.97% 2,149,327 0 0
Particulars about shares held by the top ten shareholders not subject to trading moratorium
Name of shareholder
Number of shares held subject to trading
moratorium
Type of shares
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
UOB Investment (China) Limited 15,528,941 Domestically listed foreign shares
Shenzhen Maoye Emporium Ltd 13,577,548 RMB ordinary shares
Zhong Zhiqiang 8,215,594 Domestically listed foreign shares
Shenzhen Taitian Industrial Development Co., Ltd. 5,816,012 RMB ordinary shares
Chen Qiaoling 3,109,255 RMB ordinary shares
Fang Ruiping 2,534,800 RMB ordinary shares
Chen Shaolan 2,528,341 RMB ordinary shares
Chen Shu 2,149,327 Domestically listed foreign shares
Explanation on associated
relationship or
action-in-concert among the
above shareholders
Inquired by the Company with letter, there was no related relationship between Multi Profit Asia Pacific,
SDG and other shareholders in the above table; Shenzhen Maoye Emporium Ltd and UOB Investment
(China) Limited was person acting in concert, they totally held 29,106,489 A shares and B shares of the
Company, tanking up 13.18% of total share capital. And it is unknown whether there were other related
relations or action-in-concert regulated in Administrative Measures for Takeover of Listed Companies among
the above shareholders.
3.3 Changes in controlling shareholder and actual controller
□Applicable √Inapplicable
§4 Directors, Supervisors and Senior Management Staff
4.1 Changes in shares held by directors, supervisors and senior management staff
□Applicable √Inapplicable5
§5 Report of the Board of Directors
5.1 Main operations classified according to industries or products
Unit: (RMB) Ten Thousand
Main businesses classified according to industries
Industry or product
Operating
income
Operating cost
Gross profit ratio
(%)
Increase/decreas
e of operating
income
year-on-year (%)
Increase/decreas
e of operating
cost
year-on-year (%)
Increase/decrease
of gross profit
ratio year-on-year
(%)
Income from property
management
581.68 544.83 6.34% -22.43% -26.65% 5.40%
Main businesses classified according to products
- 0.00 0.00 0.00%
5.2 Main businesses classified according to regions
Unit: (RMB) Ten Thousand
Region Operating income Increase/decrease of operating income over last year (%)
Shenzhen 581.68 -26.99%
5.3 Explanation on reasons for changes in main operation and its structure
□Applicable √Inapplicable
5.4 Reasons for significant changes in profitability (gross profit margin) of core
business compared with the previous year
□Applicable √Inapplicable
5.5 Reasons for significant changes in profit breakdown compared with the previous
year
√Applicable □Inapplicable
The Company was in the transformation period and the two major investment
projects—the IA Mall Project and the forestry project—were in the input period and
had not yet generated income.
5.6 Utilization of raised proceeds
5.6.1 Utilization of raised proceeds
□Applicable √Inapplicable
5.6.2 Change of projects
□Applicable √Inapplicable
5.7 The Board of Directors changes the operation plan for the second half of 2010
□Applicable √Inapplicable
5.8 Estimation on 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 significant change
compared with the corresponding period of the last year and explanation on reason
□Applicable √Inapplicable
5.9 Explanation of the Board of Directors on the “Non-standard Opinion” issued by
the Certified Public Accountants for the report period
□Applicable √Inapplicable6
5.10 Statement given by the Board of Directors about the progress in handling matters
mentioned in the “Non-standard Audit Report” issued by the CPA firm last year
√Applicable □Inapplicable
In the 2009 Annual Audit Report, Reanda Certified Public Accountants Co., Ltd.
issued the Statement on Issuing Unqualified Audit Opinion with Pinpointed Matters
for 2009 Annual Financial Report to Shenzhen International Enterprise Co., Ltd.,
pointing out that the Company’s ability to pay was weak and its going-concern
capability for the future was uncertain.
In order to solve the aforesaid problems, the Company focused on pushing forward
financing in the first half of this year. In Jul. 2010, Rongfa Company obtained a
financing of RMB 1.3 billion from Bohai International Trust Co., Ltd.. (For more
details, please refer to the public notice published on Securities Times, Ta Kung Pao
(HK) and http://www.cninfo.com.cn dated 3 Jul. 2010.) Such a move greatly eased the
Company’s short-term liability pressure. Upon arrival of the financing, the Company
quickly paid off mature loans creating a comparatively higher pressure, and removed
various obstacles to the housing property ownership certificates handling for the IA
Mall Project. At present, housing property ownership certificates for the IA Mall
Project are in the handling process. After obtaining those certificates, the Company
will start the next round of financing.
It is expected that along with completion of various subsequent work of the IA Mall
Project, the normal operation of the project will generate enough capital for the
Company to repay liabilities step by step. Meanwhile, the woods projects will enter
the mature period this year. All these will basically solve the pressure from mature
loans on the Company.
§6 Significant Events
6.1 Acquisition and sales of assets and assets restructure
6.1.1 Assets acquired
□Applicable √Inapplicable
6.1.2 Assets sold
□Applicable √Inapplicable
6.1.3 Progress of these events and its influence on the operating results and financial
status in the report period after the report on assets restructure or public notice on
acquisition and sales of assets being published
□Applicable √Inapplicable
6.2 Guarantees
√Applicable □Inapplicable
Unit: RMB Ten Thousand
Guarantees provided for external parties (excluding guarantees provided for subsidiaries)
Name of the
guaranteed
Date and No. of
Relevant public
Guarantee
line
Date of
occurrence
Actual
amount of
Type of
guarantee
Term of
guarantee
Implementat
ion
Guarantee for
related parties7
notice (Date of
signing
agreement)
guarantee accomplishe
d or not
or not
Shum Kong
Industry & Trade
The Annual
Report 2009
600.00 1 Jan. 1999 600.00
Security of
guarantee
Has been
executed
Yes No
Guarantee for
Sales of Rongfa
Investment
The Annual
Report 2009
1,233.84 1 Dec. 1999 1,233.84
Security of
guarantee
Till the
property
owner return
the loan
No No
Guarantee for
Sales of Rongfa
Investment
The Annual
Report 2009
603.69 1 May 2004 603.69
Security of
guarantee
Till the
property
owner return
the loan
No No
Total external guarantees lines
examined and approved in the
reporting period (A1)
0.00
Total external guarantees
occurred in the reporting period
(A2)
0.00
Total external guarantee lines
examined and approved at the period
end (A3)
1,837.53
Balance of actual guarantees at
the period end (A4)
1,837.53
Guarantees provided for subsidiary companies
Name of the
guaranteed
Date and No. of
Relevant public
notice
Guarantee
line
Date of
occurrence
(Date of
signing
agreement)
Actual
amount of
guarantee
Type of
guarantee
Term of
guarantee
Implementat
ion
accomplishe
d or not
Guarantee for
related parties
or not
Shenzhen Rongfa
Investment Co.,
Ltd
Public Notice
No. 2008-41 on
27 Aug. 2008
22,500.00 15 Feb. 2010 22,500.00 Pledge One year No No
Shenzhen Rongfa
Investment Co.,
Ltd
Public Notice
No. 2010-09 on
24 Feb. 2010
15,000.00 10 Sep. 2008 15,000.00 Pledge Two years No No
Total guarantees lines for
subsidiaries examined and approved
in the reporting period (B1)
22,500.00
Total guarantees for subsidiaries
occurred in the reporting period
(B2)
0.00
Total guarantee lines for subsidiaries
examined and approved at the period
end (B3)
37,500.00
Balance of actual guarantees at
the period end (B4)
37,500.00
Total guarantees of the Company (Total of the two above)
Total guarantees lines examined and
approved in the reporting period
(A1+B1)
22,500.00
Total guarantees occurred in the
reporting period (A2+B2)
0.00
Total guarantees lines examined and
approved at the report period
(A3+B3)
39,337.53
Total balance of actual
guarantees at the period end
(A4+B4)
39,337.538
Proportion of total actual guarantee amount (A4+B4) in net assets of the
Company
192.80%
Among which:
Amount of guarantees provided for shareholders, actual controller and
other related parties (C)
0.00
Amount of debt guarantees provided directly or indirectly for parties with
asset-liability ratio exceeding 70% (D)
39,337.53
Proportion of total guarantee amount exceeding 50% of the Company’s net
assets (E)
29,135.67
Total amount of the above three guarantees (C+D+E) 39,337.53
Explanation on possibility of taking several and joint liability involving
immature guarantees
-
6.3 Non-operating current related credits and liabilities
√Applicable □Inapplicable
Unit: RMB Ten Thousand
Funds provided by the
Company to related parties
Funds provided by related
Related parties parties to the Company
Occurred amount Balance Occurred amount Balance
Shenzhen Chunhua Medicine United Co., Ltd 0.00 0.00 0.00 209.00
Shenzhen Guoshang Medicine Co., Ltd 0.00 0.00 0.00 148.00
Shenzhen International Arcade Trading Co., Ltd 0.00 0.00 0.00 416.00
Total 0.00 0.00 0.00 773.00
Of which: the funds provided by the Company to controlling shareholder and its
subsidiaries during the report period totaled RMB 0.00, as well as the balance of
RMB 0.00.
6.4 Significant lawsuits and arbitrations
√Applicable □Inapplicable
(I) The case on house-leasing dispute between subsidiary of the Company-Shenzhen
Rongfa Investment Co., Ltd. (hereinafter called “Rongfa Investment”) and Shenzhen
Baotian Investment Co., Ltd. (hereinafter called “Baotian Investment”)
On 31 Jan. 2007, Rongfa Investment entered into the Contract on Transfer of Use
Right of Housing with Baotian Investment. Due to dispute in the execution of the
contract, Baotian Investment has not yet paid the fees for use right of housing to
Rongfa Investment by now. Shenzhen Municipal Intermediate People’s Court of
Guangdong Province made the civil ruling paper with (2008) SZFMWZ Zi No. 2867,
which has took effect on 11 Sep. 2009. (For details, please refer to the public notice
with serial number 2009-039 disclosed in Securities Times, Ta Kung Pao and
http://www.cninfo.com.cn on 29 Oct. 2009).
Up till now, Baotian Investment failed to pay the fees for use right of housing to
Rongfa Investment according to the clauses of the ruling. Presently, the case is being
executed.
(II)The case on Construction Contract for Construction Project between Rongfa9
Company and Shenzhen Fanhua Engineering Group Co., Ltd. (hereinafter called
“Fanhua Company”)
Rongfa Company entered into the Construction Contract for Construction Project with
Fanhua Company on 12 Jan. 2005, in which Fanhua Company contracted to build the
IA Mall Project developed by Rongfa Company. Rongfa Company paid the part of
construction costs, and the rest costs failed to be paid to Fanhua Company. In Dec.
2009, Fanhua Company brought an action against Rongfa Company to ask for paying
unpaid construction costs, overdue interests and other expenses. In Feb. 2010, through
mediation of Higher People’s Court of Guangdong Province, the both parties
negotiated a settlement, and the Higher People’s Court of Guangdong Province issued
the paper of civil mediation with (2009) YGFMYC Zi No. 7 (For more details, please
refer to public notice published on Securities Times, Hong Kong Ta Kung Pao and
www.cninfo.com.cn on 12 Feb. 2012).
Since the paper of civil mediation became effective, Rongfa Investment actively
raised money to repay the debt. On 12 Jun. 2010, the Company published public
notice that due to fund arrangement, repayment as stated in Clause (3) has been
overdue. On 2 Aug. 2010, Rongfa Investment signed Agreement with Fanhua
Company, which adjusted part of repayment term as stated in the paper of civil
mediation. It was agreed to adjust repayment term stated in Clause 4,5 of Article VI in
the paper of civil mediation to repay RMB 150 million before 15 Aug. 2010; pay off
the balance (excluding quality guarantee deposit with rate of 3%) before 26 Aug. 2010.
Up to the disclose date of the Interim Report 2010, Rongfa Investment has been return
engineering fund as stated in agreement. After negotiation, Fanhua Company agreed
that they would not charge double interest of non-payment of accounts payable or
penalty calculated from 14 Nov. 2009 to 25 Jan. 2010 as stated in Article VII of the
paper of civil mediation
6.5 Other significant events and explanation on analysis to their influences and
solutions
□Applicable √Inapplicable
6.5.1 Securities investment
□Applicable √Inapplicable
6.5.2 Equity of other listed companies held by the Company
□Applicable √Inapplicable
6.5.3 Non-operating capital occupation by principal shareholders and its affiliated
enterprises and progress of debt repayment
□Applicable √Inapplicable
6.5.4 Implementation of commitments made by the Company, as well as its
shareholders and actual controller
√Applicable □Inapplicable
Commitment Promisee
Contents of
commitment
Implementation
Commitment made in the share reform - -
Shareholders have finished
commitment on share merger reform10
Commitment in the acquisition report or the report on
equity changes
- - -
Commitment made in the significant asset
reorganization
Naught - -
Commitment made in the issuance Naught - -
Other commitments (including supplementary ones) Naught - -
6.5.5 Pre-plan of the Board of Directors for profit distribution or turning capital
reserves into share capital
□Applicable √Inapplicable
6.5.6 Items of other comprehensive income
Unit: RMB Yuan
Items
Occurred amount in
this period
Occurred amount in the
same period of last year
1. Profits/(losses) from available-for-sale financial assets
Less: Effects on income tax generating from available-for-sale
financial assets
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
2. Interests in the investee entities’ other comprehensive income as
per equity method
Less: Effects on income tax generating from the interests in the
investee entities’ other comprehensive income as per equity method
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
3. Profits/(losses) from cash flow hedging instrument
Less: Effects on income tax generating from cash flow hedging
instrument
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
The adjustment value that is the converted initial recognition amount
of arbitrage project
Subtotal
4. Converted amount of foreign currency financial statements
Less: Net value of disposal of oversea operations that recognized
into current profit and loss
Subtotal
5. Other
Less: Effects on income tax generating from the others that included
into other comprehensive income
Net amount transferred into profit and loss in the current period that11
recognized into other comprehensive income in prior period
Subtotal
Total 0.00 0.00
6.6 Particulars about reception of research, communication and interview in this
report period
Time Site Way Object
Main content discussed and material
provided
7 Jun. 2010
Meeting room of
the Company
Field research
Shenzhen Commercial
Daily
Progress of IA Mall Project and
general situation of the Company
§7 Financial Report
7.1 Auditing opinions
Financial Report √Un-audited □Audited
7.2 Financial statements
7.2.1 Balance Sheet
Prepared by Shenzhen International Enterprise Co., Ltd 30 Jun. 2010 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation Parent company Consolidation Parent company
Current assets:
Monetary funds 13,057,613.33 211,543.41 18,673,470.06 252,948.06
Settlement fund reserve
Dismantle fund
Transaction financial asset
Notes receivable
Account receivable 821,338.70 1,399,439.55
Account paid in advance 480,825.00 180,000.00 381,095.00 180,000.00
Premium receivables
Receivables from reinsurers
Reinsurance contract reserve receivables
Interest receivable
Dividend receivable
Other account receivable 5,729,396.89 142,021,484.61 8,271,682.45 175,779,689.75
Financial assets purchased under agreements
to resell
Inventories 1,352,560,720.73 1,347,795,365.80
Non-current assets due within 1 year
Other current assets
Total current assets 1,372,649,894.65 142,413,028.02 1,376,521,052.86 176,212,637.81
Non-current assets:
Loans and advance12
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 1,206,984.91 860,975.69 1,445,567.83 1,084,763.51
Fixed asset 54,412,920.15 5,137,363.99 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 150,000.00 150,000.00 180,000.00 180,000.00
Deferred tax assets
Other non-current assets
Total of non-current assets 62,340,167.90 72,092,593.55 75,146,172.70 83,520,731.69
Total assets 1,434,990,062.55 214,505,621.57 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 financial
institutions
Transaction financial liabilities
Notes payable
Account payable 495,872,460.15 570,599,631.60
Account received in advance 46,073,971.75 80,000.00 46,073,971.75 80,000.00
Financial assets sold under agreements to
repurchase
Handling charges and commission payable
Employee’s compensation payable 3,442,608.10 1,044,723.33 4,034,257.43 1,385,993.95
Tax payable -424,803.21 2,401,138.86 4,782.62 2,497,675.52
Interest payable 665,041.67 768,248.25
Dividend payable 5,127,701.36 5,127,701.36 5,127,701.36 5,127,701.36
Other account payable 361,090,251.10 68,296,056.25 238,935,399.95 68,613,377.28
Due to reinsurers
Insurance contract reserve
Customer deposits
Amount payables under security underwriting
Non-current liabilities due within 1 year 383,000,000.00 184,000,000.0013
Other current liabilities
Total current liabilities 1,294,847,230.92 76,949,619.80 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
Deferred tax liabilities
Deferred income
Other non-current liabilities 823,425.69 1,029,282.11
Total non-current liabilities 44,823,425.69 261,029,282.11 6,000,000.00
Total liabilities 1,339,670,656.61 76,949,619.80 1,316,573,275.07 83,704,748.11
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 reserve
Surplus reserve 125,929,834.48 96,841,026.39 125,929,834.48 96,841,026.39
General risk provision
Retained earnings -215,109,088.31 -245,137,653.21 -193,368,271.87 -206,665,033.59
Foreign exchange difference
Total owners’ equity attributable to holding
company
204,037,277.23 137,556,001.77 225,778,093.67 176,028,621.39
Minority interest -108,717,871.29 -90,684,143.18
Total owner’s equity 95,319,405.94 137,556,001.77 135,093,950.49 176,028,621.39
Total liabilities and owner’s equity 1,434,990,062.55 214,505,621.57 1,451,667,225.56 259,733,369.50
7.2.2 Income Statement
Prepared by Shenzhen International Enterprise Co., Ltd 30 Jun. 2010 Unit: RMB Yuan
In current period The same period of last year
Items
Consolidation Parent company Consolidation Parent company
I. Total operation income 6,003,596.33 171,800.00 9,235,803.11 967,010.00
Including: Sales income 6,003,596.33 171,800.00 9,235,803.11 967,010.00
Interest income
Premium income
Handling charges and commission
income
II. Total operation cost 43,609,297.54 41,548,473.37 19,464,808.60 -3,972,454.75
Including: Cost of sales 5,655,724.21 202,743.58 7,987,664.00 223,280.42
Interest expenses
Handling charges and commission
expenses14
Surrender value
Net amount of claims
Net amount of insurance contract reserve
withdrawn
Expenditure on policy dividends
Reinsurance premium expenses
Taxes and associate charges 380,643.65 398,564.21
Selling expenses 661,010.17 661,010.65
Administrative expenses 13,703,388.45 5,752,504.28 9,212,821.37 4,209,538.02
Financial expenses 23,228,909.22 -8,412,757.07 1,345,681.54 -6,999,890.60
Impairment loss -20,378.16 44,005,982.58 -140,933.17 -1,405,382.59
Add: gain from change in fair value (“-” means
loss)
Gain from investment (“-” means loss) 750,000.00 750,000.00
Including: income form investment in
affiliated enterprise and joint ventures
Foreign exchange difference (“-” means loss)
III. Operation profit (“-” means loss) -37,605,701.21 -41,376,673.37 -9,479,005.49 5,689,464.75
Add: non-operation income 2,999,252.66 2,910,912.64 15,678,607.55 15,589,639.29
Less: non-business expense 5,168,096.00 6,858.89 67,181.20 4,235.95
Including: loss from non-current asset disposal
IV. Total profit (“-” means loss) -39,774,544.55 -38,472,619.62 6,132,420.86 21,274,868.09
Less: income tax expense -9,427.98
V. Net profit (“-” means loss) -39,774,544.55 -38,472,619.62 6,141,848.84 21,274,868.09
Attributable to owners of parent company -21,740,816.44 -38,472,619.62 11,022,189.39 21,274,868.09
Minority interest -18,033,728.11 -4,880,340.55
VI. Earnings per share
(I) Basic earnings per share -0.0984 0.0499
(II) Diluted earnings per share -0.0984 0.0499
VII. Other composite income
VIII. Total composite income -39,774,544.55 -38,472,619.62 6,141,848.84 21,274,868.09
Attributable to owners of parent company -21,740,816.44 -38,472,619.62 11,022,189.39 21,274,868.09
Minority interest -18,033,728.11 -4,880,340.55
7.2.3 Cash Flow Statement
Prepared by Shenzhen International Enterprise Co., Ltd Jan.-Jun. 2010 Unit: RMB Yuan
In current period The same period of last year
Items
Consolidation Parent company Consolidation Parent company
I. Cash flows for operating activities:
Cash received from sales of goods or rending
of services
6,544,612.36 51,800.00 9,208,211.97 967,010.00
Cash received on deposits and from banks and
other financial institutions15
Net increased cash received on borrowings
from central bank
Cash received on placements from other
financial institutions
Premium received
Cash received from reinsurance
Net increased amount received on
policyholder deposit and investment
Cash received from disposal of held for
trading financial assets
Interests, handling charges and commission
received
Cash received on placements from bank, net
Cash received under repurchasing, net
Refund of tax and fare received
Other cash received relating to operating
activities
115,259,513.46 22,518,052.99 13,835,929.87 4,149,503.66
Sub-total of cash inflows 121,804,125.82 22,569,852.99 23,044,141.84 5,116,513.66
Cash paid for goods and services 78,459,700.62 21,501,234.75
Loans and advances drawn
Cash paid to central bank, banks and other
financial institutions, net
Claims paid
Interests, handling charges and commission
paid
Dividends paid to policyholders
Cash paid to and on behalf of employees 9,035,961.49 3,292,130.53 7,706,262.02 2,194,835.41
Tax and fare paid 1,067,337.33 173,200.48 2,629,593.89 1,080,941.29
Other cash paid relating to operating activities 19,174,469.51 32,800,277.63 12,376,410.29 34,374,585.35
Sub-total of cash outflows 107,737,468.95 36,265,608.64 44,213,500.95 37,650,362.05
Net cash flow from operating activities 14,066,656.87 -13,695,755.65 -21,169,359.11 -32,533,848.39
II. Cash Flows from Investment 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
13,696,125.00 13,693,825.00 7,737,798.60 7,737,798.60
Proceeds from sale of subsidiaries and other
operating units
Other cash received relating to investment
activities
Sub-total of cash inflows 13,696,125.00 13,693,825.00 7,757,798.60 7,757,798.60
Cash paid for acquiring fixed assets, 68,832.00 39,474.00 43,110.00 9,750.0016
intangible assets and other long-term assets
Cash paid for acquiring investments
Net cash used in loans
Net cash used in acquiring subsidiaries and
other operating units
Other cash paid relating to investment
activities
Sub-total of cash outflows 68,832.00 39,474.00 43,110.00 9,750.00
Net cash flow from investing activities 13,627,293.00 13,654,351.00 7,714,688.60 7,748,048.60
III. Cash Flows from Financing Activities:
Cash received from absorbing investment
Including: Cash received from increase in
minority interest
Cash received from borrowings 35,000,000.00 5,000,000.00 26,000,000.00
Cash received from issuing debentures
Other proceeds relating to financing activities 270,000.00
Sub-total of cash inflows 35,270,000.00 5,000,000.00 26,000,000.00
Cash paid for settling debt 52,000,000.00 5,000,000.00 8,000,000.00
Cash paid for distribution of dividends or
profit or reimbursing interest
16,579,806.60 17,249,302.61 444,332.76
Including: dividends or profit paid to minority
interest
Other cash payments relating to financing
activities
3,760,000.00
Sub-total of cash outflows 68,579,806.60 5,000,000.00 29,009,302.61 444,332.76
Net cash flow from financing activities -33,309,806.60 -3,009,302.61 -444,332.76
IV. Effect of foreign exchange rate changes
V. Net increase in cash and cash equivalents -5,615,856.73 -41,404.65 -16,463,973.12 -25,230,132.55
Add: beginning balance of cash and cash
equivalents
18,673,470.06 252,948.06 68,414,884.06 26,129,141.95
VI. Closing balance of cash and cash equivalents 13,057,613.33 211,543.41 51,950,910.94 899,009.4017
7.2.4 Consolidated Statement of Changes in Owners’ Equity
Prepared by Shenzhen International Enterprise Co., Ltd For the first half year of 2010 Unit: RMB Yuan
Amount for the current period Amount of last year
Owners’ equity attributable to parent company Owners’ equity attributable to parent company
Items Paid-in
capital
(or share
capital)
Capital
reserve
Less:
treasur
y stock
Specifi
c
reserve
s
Surplus
public
reserve
Genera
l risk
reserve
Retained
profits
Others
Minority
interest
Total
owners’
equity
Paid-in
capital (or
share
capital)
Capital
reserve
Less:
treasur
y stock
Specifi
c
reserve
s
Surplus
public
reserve
Genera
l risk
reserve
Retained
profits
Oth
ers
Minorit
y
interest
Total
owners’
equity
I. Balance at the end of last
year
220,901,
184.00
72,315,
347.06
125,929
,834.48
-193,368,
271.87
-90,684,
143.18
135,093,
950.49
220,901,1
84.00
72,315,
347.06
125,929
,834.48
-200,284,
817.12
-70,232
,951.83
148,628,
596.59
Add: change of
accounting policy
Correction of errors in
previous periods
Others
II. Balance at the beginning
of this year
220,901,
184.00
72,315,
347.06
125,929
,834.48
-193,368,
271.87
-90,684,
143.18
135,093,
950.49
220,901,1
84.00
72,315,
347.06
125,929
,834.48
-200,284,
817.12
-70,232
,951.83
148,628,
596.59
III. Increase/ decrease of
amount in this year (“-”
means decrease)
-21,740,8
16.44
-18,033,
728.11
-39,774,5
44.55
11,022,18
9.39
-4,880,
340.55
6,141,84
8.84
(I) Net profit
-21,740,8
16.44
-18,033,
728.11
-39,774,5
44.55
11,022,18
9.39
-4,880,
340.55
6,141,84
8.84
(II) Other composite
income
Subtotal of (I) and (II)
-21,740,8
16.44
-18,033,
728.11
-39,774,5
44.55
11,022,18
9.39
-4,880,
340.55
6,141,84
8.8418
(III) Capital input and
reduction by owners
1. Capital input of owners
2. Amount of stock payment
included in owners’ equity
3. Others
(IV) Profit distribution
1. Withdrawing surplus
public reserve
2. Withdrawing general risk
reserve
3. Distribution to owners (or
shareholders)
4. Others
(V) Internal carrying
forward of owners’ equity
1. New increase of capital
(or share capital) from
capital reserves
2. Converting surplus
reserves to capital (or share
capital)
3. Surplus reserves make up
losses
4. Others
(VI) Specific reserves19
1. Appropriated in
current period
2. Used in current
period
IV. Balance at the end of
this period
220,901,
184.00
72,315,
347.06
125,929
,834.48
-215,109,
088.31
-108,717
,871.29
95,319,4
05.94
220,901,1
84.00
72,315,
347.06
125,929
,834.48
-189,262,
627.73
-75,113
,292.38
154,770,
445.43
7.2.5 Statement of Change in Owners’ Equity of Parent Company
Prepared by Shenzhen International Enterprise Co., Ltd For the first half year of 2010 Unit: RMB Yuan
Amount for the current period Amount of last year
Items Paid-in
capital (or
share capital)
Capital
reserve
Less:
treasury
stock
Specific
reserves
Surplus
public
reserve
General
risk
reserve
Retained
profit
Total
owners’
equity
Paid-in capital
(or share
capital)
Capital
reserve
Less:
treasury
stock
Specific
reserves
Surplus
public
reserve
General
risk
reserve
Retained
profit
Total
owners’
equity
I. Balance at the end of last
year
220,901,184.
00
64,951,44
4.59
96,841,02
6.39
-206,665,
033.59
176,028,6
21.39
220,901,184.00
64,951,44
4.59
96,841,02
6.39
-199,809,
084.10
182,884,5
70.88
Add: change of accounting
policy
Correction of errors in
previous periods
Others
II. Balance at the beginning of
this year
220,901,184.
00
64,951,44
4.59
96,841,02
6.39
-206,665,
033.59
176,028,6
21.39
220,901,184.00
64,951,44
4.59
96,841,02
6.39
-199,809,
084.10
182,884,5
70.88
III. Increase/ decrease of
amount in this year (“-” means
decrease)
-38,472,6
19.62
-38,472,6
19.62
21,274,86
8.09
21,274,86
8.0920
(I) Net profit
-38,472,6
19.62
-38,472,6
19.62
21,274,86
8.09
21,274,86
8.09
(II) Other composite income
Subtotal of (I) and (II)
-38,472,6
19.62
-38,472,6
19.62
21,274,86
8.09
21,274,86
8.09
(III) Capital input and
reduction by owners
1. Capital input of owners
2. Amount of stock payment
included in owners’ equity
3. Others
(IV) Profit distribution
1. Withdrawing surplus public
reserve
2. Withdrawing general risk
reserve
3. Distribution to owners (or
shareholders)
4. Others
(V) Internal carrying forward
of owners’ equity
1. New increase of capital (or
share capital) from capital
reserves
2. Converting surplus reserves
to capital (or share capital)21
3. Surplus reserves make up
losses
4. Others
(VI) Specific reserves
1. Appropriated in current
period
2. Used in current period
IV. Balance at the end of this
period
220,901,184.
00
64,951,44
4.59
96,841,02
6.39
-245,137,
653.21
137,556,0
01.77
220,901,184.00
64,951,44
4.59
96,841,02
6.39
-178,534,
216.01
204,159,4
38.9722
7.3 Notes to financial statement
7.3.1 Should there be any changes in accounting policies, accounting estimates and
accounting errors, give the relevant contents, reasons and the amount influenced.
□Applicable √Inapplicable
7.3.2 Significant changes in consolidation scope for the reporting period and reasons
□Applicable √Inapplicable
7.3.3 If the financial report of the Company is produced as “Non-standard Opinion”,
the Company should make the relevant matters and notes.
□Applicable √Inapplicable
