Abstract of the 2015 Semi-annual Report of HaiNan Pearl River Holdings Co., Ltd.
Stock Code: 000505, 200505 Stock Abbr.: ZJKG, ZJB Announcement No.: 2015-015
HaiNan Pearl River Holdings Co., Ltd.
Abstract of the 2015 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 changes in 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) 136,117,829.19 124,684,500.79 9.17%
Net profit attributable to shareholders of
21,492,625.03 -76,849,759.83 127.97%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and -103,796,313.13 -77,979,104.27 -33.11%
losses (RMB Yuan)
Net cash flows from operating activities
-94,962,794.82 -156,748,554.81 39.42%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.05 -0.18 127.98%
Diluted EPS (RMB Yuan/share) 0.05 -0.18 127.98%
As at the end of the
As at the end of last year YoY +/-
reporting period
Total assets (RMB Yuan) 1,588,084,330.14 1,645,436,644.78 -3.49%
Net assets attributable to shareholders of
-88,070,500.20 15,564,470.40 -665.84%
the Company (RMB Yuan)
(2) Shareholdings of the top 10 common shareholders
Unit: share
Total number of common
shareholders at the end of the 40,122
reporting period
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Abstract of the 2015 Semi-annual Report of HaiNan Pearl River Holdings Co., Ltd.
Shareholdings of the top 10 common shareholders
Total common Pledged or frozen shares
Name of Nature of Shareholding Number of restricted common
shares held at Status of Number of
shareholder shareholder percentage shares held
the period-end shares shares
Beijing Wanfa
Real Estate State-owned
26.36% 112,479,478
Development corporation
Co., Ltd.
Li Leon Zhan Foreign
2.38% 10,158,806
Wei individual
Foreign
Yao Xiu Guang 2.06% 8,777,329
individual
Domestic
Yao Liyuan 0.46% 1,963,376
individual
Domestic
Zhang Xiaoxia 0.46% 1,949,250
individual
Domestic
Lu Yusheng 0.39% 1,649,750
individual
Domestic
Wang Jianjun 0.37% 1,599,910
individual
Domestic
Chen Mingwei 0.36% 1,523,704
individual
Zhongrong
International
Trust Co.,
Ltd.-Rongxiang Other
No. 4 Structural 0.34% 1,440,800
Securities
Investment
Assembled
Funds Trust
South China
Domestic
Financial
non-state-owne 0.30% 1,299,500 1,299,500
Holdings
d corporation
Limited
Among the 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 as
relationship or persons acting in
prescribed in the Information Disclosure Administrative Methods for Changes in Shareholding of
concert among the
Shareholders of Listed Companies. And it is unknown whether there is related-party relationship
above-mentioned shareholders
among other shareholders and whether they are prescribed parties with concerted action.
Shareholder Wang Jianjun holds 1,599,910 shares in the Company through a client account of
collateral securities for margin trading in Nanjing Securities Co., Ltd. And shareholder Ren
Shareholders taking part in
Yuhua holds a total of 1,230,700 shares in the Company, with 30,700 shares through a common
securities margin trading (if any)
securities account and 1,200,000 shares through a client account of collateral securities for
margin trading in China Galaxy Securities Co., Ltd.
(3) Shareholdings of the top 10 preference shareholders
□ Applicable √ Inapplicable
No preference shares in 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
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Abstract of the 2015 Semi-annual Report of HaiNan Pearl River Holdings Co., Ltd.
□ Applicable √ Inapplicable
The actual controller did not change in the reporting period.
3. Discussion and analysis by the management
In the first half of 2015, we still faced great difficulties in our operation due to the strong pressure
for us to repay the principals and interest of the mature loans previously secured, the rising labor
cost in our property and hotel services, the fierce competition on the regional market, etc.
Up to 30 Jun. 2015, our un-audited total assets were RMB 1,588,084,330.14 and net assets
attributable to our shareholders were RMB -88,070,500.20. For Jan.-Jun. 2015, we achieved
operating revenues of RMB 136,117,829.19 and net profits of RMB 18,641,274.06, of which the
net profits attributable to the owners of the Company (without subsidiaries) were RMB
21,492,625.03 and the minority shareholders’ income was RMB -2,851,350.97.
I. Operation review for the reporting period
1. During the reporting period, the progress of the major structures of the 38# building, 39# building
and 40# building of Phase III of Hubei Meiling Qingcheng Project had respectively reached the 27 th
floor, 24th floor and 21st floor; the progress of the brickwork and the secondary structure had
respectively reached the 15th floor, 10th floor and 8th floor; the waterproof engineering and backfill
engineering of the basement had completed; the completed amount of the main project was of RMB
63 million and the accumulative completed amount was of RMB 93 million. There were 446 sets of
the residences of 41,950 square meters in the 39th building and 40th building of the opening
quotation of the first period and there were 234 sets completed the subscription on the day of
opening as well as the amount of the tentative contract of the purchase letter was about of RMB 230
million that acquired the favorable performance of the opening quotation.
2. The business season of the Snow Town of the controlling shareholder, Mudanjiang Tourist
Development Group in 2015 was from Jan. to Mar. and since Apr., the Group went out of business
after the snow season. The realized operating income of the business season of the first half year
was of RMB 22.5036 million with the realized net profits of RMB 12.5404 million and within the
reporting period, the Group continued to invest of about RMB 30 million for the construction of the
comprehensive service center project of the Days Resort in Snow Town which had not completed
the capping of the major structures with the secondary structure being executing.
3. Property management: the property management company the Company attributed to was facing
larger financial risks and capital pressure. Owning to part of the “migrant bird type” project was in
the property income recycling slack season, part of the income of the first half year delayed the
recycling. Meanwhile the lowest wage standards and the payment base of the employees' social
security had constantly been up-regulated, which caused the labor cost of the employees increased
sharply compared to the same period of the previous years. The property company of the first half
year of 2015 had completed the operating income of RMB 94.1058 million, the expense of
operating cost of RMB 94.5869 million, the paid business tax of RMB 5.4576 million and the
realized profits of RMB -0.4852 million as well as there were 86 management projects of the
property company and its subsidiaries and branch companies with the comprehensive management
area of about 7.50 million square meter, of which there were 67 residence projects and 14 office
projects. In terms of the structure of the project, the percentage of the residence projects was of 80%,
while under the situation of the unraised property fee of more than ten years but the operating cost
increased by twofoldness, the profit sources of the residence projects became smaller even was in
the loss state.
4. Progress of the projects invested in previous period:
The coal logistics project of Mulin Town had changed the plan as used the land lot for developing
the solar power generation and the greenhouse agriculture projects, during the reporting period, had
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Abstract of the 2015 Semi-annual Report of HaiNan Pearl River Holdings Co., Ltd.
completed project approval, now the Company is applying project approval procedures, etc to the
relevant departments.
Yunxi iron mines project: Owning to the continuous low level of the market price of the powdered
iron, the Company temporary slowed down the original plan of mining area production line
construction and equipment installation. During the reporting period, the Company and the
cooperation party strengthen the management of mining area, contacted with many steel mills,
inspection, straighten out and establish sales channel. In line with the market condition, adjusted
production line construction and mineral detailed survey schedule of mining area of Zhao courtyard
and Dujiawan. Due to the iron ores grade of Zhao courtyard was lower than Dujiawan, in line with
the analysis of market condition, planed to transfer the production equipment invested to Dujiawan,
the iron ore grade had larger competitiveness in the market. Meanwhile, considering the influence
of the continuous low level of the domestic market price of iron ore, the Company actively seeks
project transfer or introduces strategic investors to develop the project in common.
During the reporting period, the land certificate for the industrial land of the Real Estate
Development Project on a Former Tubular Pile Factory had been completed, so far, the Company is
waiting for the land certificate issued by Land Departments. The planning and design of project will
be conducted after the adjustment of regulatory detailed planning in the area issued by the Sanya
government.
5. During the reporting period, in order to relieve capital pressure of repaying capital with interest
of the loan in previous period due in reporting period, the Company had sold its holding of
7,750,000 shares of Southwest Securities which obtained investment income RMB 120 million,
which was the Company’s main profit sources in the first half of the year .
4. Matters related to financial reporting
(1) Explain any changes in the accounting policies, accounting estimates and measurement methods as
compared with the financial reporting of last year
□ Applicable √ Inapplicable
No such cases in the reporting period.
(2) Explain any retrospective restatement due to correction of significant accounting errors in the reporting
period
□ Applicable √ Inapplicable
No such cases in the reporting period.
(3) Explain any changes in the consolidation scope as compared with the financial reporting of last year
□ Applicable √ Inapplicable
No such cases 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
HaiNan Pearl River Holdings Co., Ltd.
29 August 2015
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