Abstract of the 2014 Semi-annual Report of HaiNan Pearl River Holdings Co., Ltd.
Stock Code: 000505, 200505 Stock Abbr.: ZJKG, ZJB Announcement No.:2014-055
HaiNan Pearl River Holdings Co., Ltd.
Abstract of the 2014 Semi-annual Report
1. Important reminders
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text
disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Shenzhen Stock Exchange or any other
website designated by CSRC.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version
shall prevail.
Company profile
Stock abbreviation ZJKG, ZJB Stock code 000505, 200505
Stock exchange listed with Shenzhen Stock Exchange
For contact Company Secretary Securities Affairs Representative
Name Yu Cuihong Yu Cuihong
Tel. 0898-68583723 0898-68583723
Fax 0898—68581026 0898—68581026
E-mail hnpearlriver@21cn.net hnpearlriver@21cn.net
2. Financial highlights and change of shareholders
(1) Financial highlights
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/-
Operating revenues (RMB Yuan) 124,684,500.79 107,223,021.13 16.29%
Net profit attributable to shareholders of
-76,849,759.83 -64,455,008.65 -19.23%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains -77,979,104.27 -72,879,625.27 -7.00%
and losses (RMB Yuan)
Net cash flows from operating activities
-156,748,554.81 -43,861,109.19 -257.37%
(RMB Yuan)
Basic EPS (RMB Yuan/share) -0.18 -0.15 -19.27%
Diluted EPS (RMB Yuan/share) -0.18 -0.15 -19.27%
Weighted average ROE -104.13% -33.76% -70.37%
As at the end of the
As at the end of last year YoY +/-
reporting period
Total assets (RMB Yuan) 1,446,617,800.51 1,237,713,804.04 16.88%
Net assets attributable to shareholders of
30,884,007.58 116,714,215.59 -73.54%
the Company (RMB Yuan)
(2) Shareholdings of the top 10 common shareholders
Total number of common
shareholders at the end of the 41,267
reporting period
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Abstract of the 2014 Semi-annual Report of HaiNan Pearl River Holdings Co., Ltd.
Shareholdings of the top 10 common shareholders
Total shares Pledged or frozen shares
Name of Nature of Shareholdin Number of restricted shares
held at the Status of Number of
shareholder shareholder g percentage held
period-end shares shares
Beijing Wanfa
Real Estate State-owned
26.36% 112,479,478
Development corporation
Co., Ltd.
Dong Domestic
0.71% 3,050,000
Xiaojuan individual
Domestic
Xu Zhen 0.67% 2,856,124
individual
Domestic
Pan Xinran 0.49% 2,071,599
individual
Zhang Domestic
0.46% 1,949,250
Xiaoxia individual
Domestic
Hu Zhengxiu 0.43% 1,845,500
individual
Chen Domestic
0.43% 1,827,900
Mingwei individual
Domestic
Liu Min 0.36% 1,551,300
individual
Guangzhou
Angyang
Computing Non-state-ow
Network ned 0.35% 1,488,300
Science & corporation
Technology
Co., Ltd.
Domestic
Li Hong 0.33% 1,400,500
individual
Among shareholders above, there exists no related-party relationship between the principal
Explanation on associated shareholder and other shareholders of the Company. Nor they are parties with concerted action
relationship or/and persons as prescribed in the Information Disclosure Administrative Methods for Changes in
acting in concert among the Shareholding of Shareholders of Listed Companies. And it is unknown whether there is
above-mentioned shareholders: related-party relationship among other shareholders and whether they are prescribed parties
with concerted action.
(3) Shareholdings of the top 10 preferred share holders
□ Applicable √ Inapplicable
No preferred shares for the reporting period.
(4) Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
The controlling shareholder did not change in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
The actual controller did not change in the reporting period.
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Abstract of the 2014 Semi-annual Report of HaiNan Pearl River Holdings Co., Ltd.
3. Discussion and analysis by the management
During the reporting period, the Company made great efforts to promote each business such as real
estate, property management, tourist hotel service, as well as tried hard to avoid the market risks
and to timely adjust the operation strategy and to strive for the sustainable development of the
enterprise according to the planed development strategy of the Company.
1. As for the real estate business: Phase III of Hubei Meiling Qingcheng Project had received the
starting capital of the previous development, with the work of the Phase III and the design had
completed, the previous preparation work of the project implementation had all ready, as well as the
biding work of the major engineering had finished that the Company tried hard to realize the
construction in the second half year after receiving the construction funds and to make contribution
for the listed companies with the profits realized from the sales in 2015;
After the efforts of multiple parties, the land ownership problem left over by history of “the Real
Estate Development Project of the Original Tubular Pile Land” had been solved, with the Sanya
Municipal Bureau of Land and Resources had specified confirmed the execution basis of the
transaction of the land certification of the project. The Company is paying close attention on
handling the land certification and developing the planning and adjustment of the project as well as
the previous work of the bid, auction and listing of the land.
2. As for the hotel service: the China Snow Town and hotels operated by Mudanjiang Tourist
Development Group. From Jan. to Mar. is the “golden” season of Snow Town operation, so the
Company deeply dig out the market potential, made great efforts to develop the market resources,
tried hard to develop the marketing work in order to gain the favorable achievement the sales
revenue of RMB 2.4 million. In the middle of Apr., the hotels stopped operation and carried out the
appropriate settlement of the stay or leave of majority of the personnel. At the same time the
Company organized the staffs to development the external connection, in order to expand the
customer group for the Winter sales of the Snow Town and to do well in the preparation of the
Winter operation.
The operation of the Days Hotel & Suite Sanya Resort faced unusual fierce market competition, and
owning to the impact from the overseas Southeast Asia Market on the Sanya Market, the in-flow
tourists of the island reduced obviously, while the increased number of the rooms of the newly
opened hotels were far more exceed the requirements with each hotel competed to grasp the clients
resources through reducing the price, thus made the market competition incredible fierce. And due
to the operation year of the hotels which attributed to the Company were more than 5 years, the
hardware facility and the fitment environment had not process any strong competition power any
more. The hotels basically maintain the balance of payments through various promotion methods
such as reducing the price. The operation revenue of the first half year was of RMB 17.74 million
and the realized profits of RMB 2.45 million (excluding depreciation).
3. Property management: in the first half of this year, the Company completed its operating income
RMB 78.8019 million, expense of operating cost was RMB 79.0393 million, paid business tax
RMB 4.6127 million, profited RMB -349,400. In the first half of 2014, the income increased RMB
13.2959 million and the profit norm had a sharp loss-mitigation compared to that in the same period
of last year. Financial situation improved .The main reason for the losses were: Rigid cost rose
sharply. Employee in the minimum wage and employee social security tax base continuously
increased, which lead to the labor cost of employee a big radial growth compared to that in the same
period of previous years. This showed that Property Company still faces a great risk of management
and financial pressure.
4. Progress of investment project in previous period: Yunxi Iron Ore Project and Mulin Town Coal
Logistics Project can not profit in expected, the Company’s financial pressure of operating was
larger. In 2014 the Company decided to timely adjust investment strategy.
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Abstract of the 2014 Semi-annual Report of HaiNan Pearl River Holdings Co., Ltd.
(1) Mulin Town Coal Logistics Project：Due to the coal market price continued to fall, the
government continued to regulate the coal industry; in order to response the government’s appeal
and seek the Company's future development prospect. The Company decided to recover the
investment to the coal trade and the construction of the coal water slurry production line, and
researched and utilized the benefits of existing land resources as the exclusive warehousing logistics
base, actively cooperated with domestic famous enterprises in the field of agriculture, logistics. As
of the first half of 2014, the Company successively recovered RMB 70 million investment fund of
the project.
(2) Yunxi Iron Ore Project: Zhaojiayuan Mine Lot: in the first half of 2014, due to the terrain
weather and other factors, the reconstruction project of electric power can not be completed timely;
at present, the infrastructure construction and the equipment installation of transformer substation
had been completed. Line tower had also been completed. It is expected by the end of the year that
the electricity can be used. Residents in the mine lot were moving gradually; residents had great
effects to the production of the mine lot transacted the relocation in prior, which including the
compensation to fruit trees in fields and graveyard. In the first half of this year, the Company can
not raise enough capital to pay the tax of resource, and failed to meet the requirements of mining
scale and organizing production. Dujiawan mine lot was under the design of related production line
according to the geological data. The financing gap of the implementation of follow-up investment
plan was still large.
(3) Shijiazhuang Luquan new village construction project was in conformity with the national
urbanization policy, however, the present difficult was that how to solve the problem of
compensation for farmers in the bad local investment environment, meanwhile completed the
project in all kinds of examination and approval procedures and the uncertainty of the above work
faced so far. The Company actively communicated and negotiated with the local government and
the villagers, focusing on solving contradiction in the village, solving the petitioning problem and
completed land acquisition. The Company strived for the proper solutions as soon as possible.
4. Matters related to financial reporting
(1) Explain change of the accounting policies, accounting estimates and measurement methods as compared
with the financial reporting of last year
□ Applicable √ Inapplicable
The accounting policies, accounting estimates or measurement methods did not change in the reporting period.
(2) Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□ Applicable √ Inapplicable
No correction of significant accounting errors in the reporting period.
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
□ Applicable √ Inapplicable
The consolidation scope did not change in the reporting period.
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard
audit report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
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Abstract of the 2014 Semi-annual Report of HaiNan Pearl River Holdings Co., Ltd.
HaiNan Pearl River Holdings Co., Ltd.
29 Aug. 2014
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