The First Quarterly Report 2010 of Hubei Sanonda Co., Ltd.
1
HUBEI SANONDA 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 Hubei Sanonda Co., Ltd (hereinafter referred to as “the Company”) individually and
jointly accepted responsibility for the correctness, accuracy and completeness of the contents of this
report and confirmed that there was no false information, misleading statement or material
omissions.
1.2 The Financial Report of the first quarterly report has not been audited.
1.3 Mr. Li Zuorong, Chairman of the Board of the Company, Mr. He Xuesong, person in charge of
accounting firm (chief accountant) and accounting work, hereby confirmed that the Financial
Report enclosed in the quarterly report is true and complete.
§2 Company Profile
2.1 Main accounting data and financial indices
Unit: RMB Yuan
At the end of the reporting
period At the end of last year Increase/decrease (%)
Total assets (RMB Yuan) 2,228,422,409.56 2,039,070,607.41 9.29%
Owner’s equity attributable to shareholders of
listed company (RMB Yuan) 1,093,517,902.67 1,087,987,662.96 0.51%
Share capital (Share) 593,923,220.00 593,923,220.00 0.00%
Net asset per share attributable to shareholders of
listed company (RMB Yuan/share) 1.84 1.83 0.55%
Reporting period Same period of last year Increase/decrease (%)
Sales turnover (RMB Yuan) 377,247,000.51 521,912,403.83 -27.72%
Net profit attributable to shareholders of listed
company (RMB Yuan) 7,109,506.88 31,314,745.64 -77.30%
Net cash flow arising from operating activities
(RMB Yuan) -118,185,339.00 5,800,411.66 -2,137.53%
Net cash flow per share arising from operating
activities (RMB Yuan/share) -0.20 0.01 -2,100.00%
Basic earnings per share (RMB Yuan/share) 0.0120 0.0527 -77.23%
Diluted earnings per share (RMB Yuan/share) 0.0120 0.0527 -77.23%
Weighted average return on equity (%) 0.65% 2.77% -2.12%
Weighted average return on equity after
deducting extraordinary gains and losses (%) 0.64% 2.66% -2.02%
Items of extraordinary gains and losses Amount from 1 Jan. to 31
Mar. 2010
Other non-operating income and expense other than abovementioned 215,174.70
Influence of minority interest 12,008.19
Influence of income tax -53,793.67
Total 173,389.22The First Quarterly Report 2010 of Hubei Sanonda Co., Ltd.
2
Explanation on important items of extraordinary gains and losses:
N/A
2.2 Statement on total number of shareholders and shares held by the top ten shareholders not
subject to trading moratorium
Unit: share
Total number of shareholders 80,200 (including 54321 ones of A-share and 25879 ones of B-share)
Shares held by the top ten shareholders not subject to trading moratorium
Full name of shareholders Shares not subject to trading moratorium
held at the period-end Type of share
Sanonda Group Corporation 118,887,202 RMB common shares
Qichun County of State-Owned Assets
Management Bureau 4,489,266 RMB common shares
Huang Hua 3,390,002 RMB common shares
Chen Qiaoling 3,385,000 RMB common shares
Li Dongliang 3,105,223 RMB common shares
Yuan Haixiang 3,002,349 RMB common shares
Liu Yingjie 2,720,181 RMB common shares
Huang Yangsheng 2,678,950 RMB common shares
Hu Yunjiang 2,676,331 RMB common shares
Jingzhou Shashi District Rural Credit
Cooperative 2,500,000 RMB common shares
§3 Significant Events
3.1 Significant changes in major accounting data, financial highlights and reasons for these changes.
√Applicable □Non-applicable
Opening amount
Items
Amount in
the reporting
period
(Amount in
the reporting
period)
(Amount at the
same period of last
year )
Increase/
decrease % Reason for change
Notes
receivable 3,211 1,075 198.79% Increase in acceptance settlement
Accounts
receivable 15,576 6,586 136.51% Trade receivable within normal credit period
Inventory 26,201 19,876 31.82% Increase in finished goods
Short-term
borrowing 21,596 3,990 441.26% Increase in demand of funds for technological
innovation for production
Tax payable -3,216 -446 621.29% Increase in pending deduct VAT on purchase
Sale expense 1,043 1,889 -44.79%
Decrease in freight charges and export
charges, and the data of Sanonda Zhengzhou
Pesticide Co., Ltd. was excluded in it in this
year because the equities of the said company
were transferred out.
Administrative
expense 1,425 2,970 -52.01%
The data of Sanonda Zhengzhou Pesticide
Co., Ltd. was excluded in it in this year
because the equities of the said company were
transferred out.
Total profit 952 4,314 -77.94% Decrease in sales revenue and gross profitThe First Quarterly Report 2010 of Hubei Sanonda Co., Ltd.
3
3.2 Process of significant events and influence, as well as analysis and explanation on resolving
proposal
□Applicable √Inapplicable
3.3 Special commitments made by the company, shareholders and actual controllers
□Applicable √Inapplicable
3.4 Warnings of possible loss or large-margin change of the accumulated net profit made during the
period from the beginning of the year to the end of the next report period compared with the same
period of the last year according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events need to be explained
3.5.1 Securities investment
□Applicable √Non-applicable
3.5.2 Reception of research, interviews and visits in the reporting period
Reception time Reception place Reception way Reception object Major discussion content and the information
provided by the Company
2 Mar. 2010 The Company Telephone
communication Individual investor Consultation of production and operation without
providing information
3.5.3 Explanation on other significant events
□Applicable √Inapplicable
3.6 Derivative Investment
□Applicable √Inapplicable
3.6.1 Derivatives held as at the end of the report period
□Applicable √Inapplicable
§4 Attachment
4.1 Balance sheet
Prepared by Hubei Sanonda Co., Ltd 31 Mar. 2010 Unit: RMB Yuan
Closing Amount Opening amount
Items Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 450,055,754.77 414,291,970.35 474,460,623.29 424,584,953.40
Settlement fund reserve
Dismantle fund
Transaction financial asset
Notes receivable 32,109,921.45 26,382,408.24 10,746,710.09 2,714,810.09
Account receivable 155,760,643.35 35,669,046.39 65,857,262.23 9,940,149.67
Account paid in advance 25,172,714.90 23,421,365.84 24,018,481.41 25,138,734.64
Premium receivables
Receivables from reinsurersThe First Quarterly Report 2010 of Hubei Sanonda Co., Ltd.
4
Reinsurance contract reserve
receivables
Interest receivable
Dividend receivable
Other account receivable 21,833,360.12 115,913,813.00 19,220,669.32 97,072,583.33
Financial assets purchased
under agreements to resell
Inventories 262,013,163.52 215,615,643.01 198,762,663.23 146,279,805.97
Non-current assets due within 1
year
Other current assets
Total current assets 946,945,558.11 831,294,246.83 793,066,409.57 705,731,037.10
Non-current assets:
Loans and advance
Available for sale financial assets
Held to maturity investments
Long-term account receivable
Long-term equity investment 11,378,382.63 49,533,405.95 11,378,382.63 49,533,405.95
Investing property 5,116,012.50 5,116,012.50 5,116,012.50 5,116,012.50
Fixed asset 771,829,930.52 722,753,425.68 778,661,093.09 728,578,456.14
Project in construction 331,139,970.35 325,281,324.41 287,858,631.17 281,349,294.67
Engineering material
Fixed asset disposal 30,625.25 30,625.25
Bearer biological asset
Oil assets
Intangible assets 149,480,200.61 135,890,515.16 150,488,348.86 136,774,286.23
Development expense
Goodwill
Long-term expense to be
apportioned
Deferred income tax assets 12,501,729.59 10,146,664.99 12,501,729.59 10,146,664.99
Other non-current assets
Total of non-current assets 1,281,476,851.45 1,248,751,973.94 1,246,004,197.84 1,211,498,120.48
Total assets 2,228,422,409.56 2,080,046,220.77 2,039,070,607.41 1,917,229,157.58
Current liabilities:
Short-term borrowings 215,958,646.43 180,000,000.00 39,899,274.54 35,000,000.00
Borrowings from Central Bank
Deposits and due to banks and
other financial institutions
Borrowings from banks and
other financial institutions
Transactional financial
liabilities
Notes payable 25,000,000.00 25,000,000.00 5,000,000.00 5,000,000.00
Accounts payable 89,592,219.20 60,372,134.42 116,941,353.00 66,229,596.12
Accounts received in advance 47,969,561.26 33,351,309.52 30,731,258.63 18,309,739.93
Financial assets sold under
agreements to repurchase
Handling charges andThe First Quarterly Report 2010 of Hubei Sanonda Co., Ltd.
5
commissions payable
Employee’s compensation
payable 15,359,728.54 12,430,614.04 17,231,898.45 13,295,096.69
Taxes and fares payable -32,159,931.94 -21,666,480.16 -4,458,696.03 2,208,088.91
Interest payable
Dividend payable 349,463.30 349,463.30 349,463.30 349,463.30
Other accounts payable 57,058,230.28 27,180,319.64 39,413,834.96 27,182,609.39
Due to reinsurers
Insurance contract reserve
Amount payable for acting
trading securities
Amount payable for acting
underwriting securities
Non-current liabilities due
within 1 year 95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00
Other current liabilities
Total current liabilities 514,127,917.07 412,017,360.76 340,108,386.85 262,574,594.34
Non-current liabilities:
Long-term borrowings 589,560,000.00 589,560,000.00 579,560,000.00 579,560,000.00
Debentures payable
Long-term payables 9,840,000.00 9,840,000.00 9,840,000.00 9,840,000.00
Specific-purpose account
payables
Accrued liabilities
Deferred income tax liabilities
Other non-current liabilities 9,209,677.27 6,990,000.00 9,209,677.27 6,990,000.00
Total non-current liabilities 608,609,677.27 606,390,000.00 598,609,677.27 596,390,000.00
Total liabilities 1,122,737,594.34 1,018,407,360.76 938,718,064.12 858,964,594.34
Shareholders’ equity
Share capital 593,923,220.00 593,923,220.00 593,923,220.00 593,923,220.00
Capital surplus 271,591,478.35 268,447,075.77 271,591,478.35 268,447,075.77
Less: Treasury Stock
Special reserve 19,110,552.81 11,710,872.82 20,689,819.99 13,898,173.74
Surplus reserve 72,736,287.77 72,736,287.77 72,736,287.77 72,736,287.77
General risk provision
Retained earnings 136,156,363.74 114,821,403.65 129,046,856.85 109,259,805.96
Foreign exchange difference
Total owners' equity attributable
to holding company 1,093,517,902.67 1,061,638,860.01 1,087,987,662.96 1,058,264,563.24
Minority interests 12,166,912.55 12,364,880.33
Total owners’ equity 1,105,684,815.22 1,061,638,860.01 1,100,352,543.29 1,058,264,563.24
Total liabilities and owners’
equity 2,228,422,409.56 2,080,046,220.77 2,039,070,607.41 1,917,229,157.58
4.2 Income Statement
Prepared by Hubei Sanonda Co., Ltd Jan.-Mar. 2010 Unit: RMB Yuan
Amount from Jan.-Mar. 2010 Amount from Jan.-Mar. 2009
Items
Consolidation Parent Company Consolidation Parent CompanyThe First Quarterly Report 2010 of Hubei Sanonda Co., Ltd.
6
I. Total operating revenue 377,247,000.51 276,938,206.08 521,912,403.83 352,237,239.91
Including: Sales 377,247,000.51 276,938,206.08 521,912,403.83 352,237,239.91
Interest income
Premium income
Handling charges and commission
income
II. Total operating cost 367,946,268.49 269,530,342.49 481,083,194.32 314,954,643.90
Including: Cost of sales 332,895,862.20 246,626,061.74 421,242,622.40 273,861,359.11
Interest expenses
Handling charges and commission
expenses
Surrender value
Claim expenses-net
Insurance contract reserve-net
Policy dividend payment
Amortized reinsurance expense
Taxes and surcharges 578,381.01 353,549.67 248,463.05 9,764.56
Selling and distribution expenses 10,426,761.12 5,795,978.06 18,886,329.21 10,487,184.29
Administrative expenses 14,254,874.63 7,348,573.44 29,701,306.49 20,470,287.28
Financial expense 9,790,389.53 9,406,179.58 11,004,473.17 10,126,048.66
Asset impairment loss 0.00 0.00
Add: gain/(loss) from change in fair
value (“-” means loss) 0.00 0.00
Gain/(loss) from investment (“-”
means loss) 0.00 0.00
Including: income form investment
on affiliated enterprises and
jointly-run enterprise
Foreign exchange difference (“-”
means loss)
III. Business profit (“-” means loss) 9,300,732.02 7,407,863.59 40,829,209.51 37,282,596.01
Add: non-business income 420,553.67 7,600.00 2,537,604.61 93,469.34
Less: non-business expense 205,378.97 0.00 223,174.61 191,889.71
Including: loss on non-current asset
disposal
IV. Total profit (“-” means loss) 9,515,906.72 7,415,463.59 43,143,639.51 37,184,175.64
Less: Income tax expense 2,723,440.80 1,853,865.90 10,996,124.25 9,296,043.91
V. Net profit (“-” means loss) 6,792,465.92 5,561,597.69 32,147,515.26 27,888,131.73
Attributable to owners of parent
company 7,109,506.88 5,561,597.69 31,314,745.64 27,888,131.73
Minority interests -317,040.96 0.00 832,769.62
VI. Earnings per share
(I) basic earnings per share 0.0120 0.0527
(II) diluted earnings per share 0.0120 0.0527
Ⅶ. Other comprehensive income
Ⅷ. Total comprehensive income 6,792,465.92 5,561,597.69 32,147,515.26 27,888,131.73
Attributable to owners of
parent company 7,109,506.88 5,561,597.69 31,314,745.64 27,888,131.73
Attributable to minority
shareholders -317,040.96 0.00 832,769.62 0.00The First Quarterly Report 2010 of Hubei Sanonda Co., Ltd.
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4.3 Cash Flow Statement
Prepared by Hubei Sanonda Co., Ltd Jan.-Mar. 2010 Unit: RMB Yuan
Amount from Jan.-Mar. 2010 Amount from Jan.-Mar. 2009
Items
Consolidation Parent Company Consolidation Parent Company
1. Cash flows from operating
activities:
Cash received from sales of goods
or rending of services 255,075,991.51 188,607,604.01 376,908,926.51 309,942,640.55
Net increase in customer bank
deposits and due to banks and
other financial institutions
Net increase in borrowings from
central bank
Net increase in borrowings from
other financial institutions
Premium received from original
insurance contracts
Net cash received from
reinsurance
Net increase in policy holder
deposits and investment funds
Net increase in disposal of
held-for-trading financial assets
Interest, handling charges and
commissions received
Net increase in borrowings from
banks and other financial
institutions
Net increase in buy-back business
Refund of taxes and fares
received 4,357,301.43 1,919,719.19 1,816,790.64 0.00
Other cash received relating to
operating activities 18,839,351.58 7,996,483.53 15,177,553.06 14,900,815.86
Sub-total of cash inflows from
operating activities 278,272,644.52 198,523,806.73 393,903,270.21 324,843,456.41
Cash paid for goods and services 334,005,625.53 249,407,442.80 252,554,160.67 193,883,743.72
Net increase in loans and
advances to customers
Net increase in deposits with
central bank and other financial
institutions
Original insurance contract claims
paid
Cash paid for interest, fees and
commissions
Dividends paid to policyholders
Cash paid to and on behalf of
employees 23,076,475.49 17,598,536.82 22,895,737.23 16,333,589.53
Taxes and fares paid 2,897,733.13 62,077.72 26,098,825.20 22,539,994.33
Other cash paid relating to
operating activities 36,478,149.37 23,533,034.35 86,554,135.45 85,774,867.08
Sub-total of cash outflows from
operating activities 396,457,983.52 290,601,091.69 388,102,858.55 318,532,194.66The First Quarterly Report 2010 of Hubei Sanonda Co., Ltd.
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Net cash flows from operating
activities -118,185,339.00 -92,077,284.96 5,800,411.66 6,311,261.75
2. Cash Flows from Investment
Activities:
Cash received from withdrawing
investments 0.00 0.00
Cash received from investment
income 0.00 0.00
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets
50,114.00 15,450.00 31,853.00 29,853.00
Net proceeds from sale of
subsidiaries and other operating
units
0.00 0.00
Other cash received relating to
investment activities 238,473.04 238,473.04
Sub-total of cash inflows from
investment activities 288,587.04 253,923.04 31,853.00 29,853.00
Cash paid for acquiring fixed
assets, intangible assets and other
long-term assets
69,181,101.82 61,920,715.51 106,675,124.60 106,575,124.60
Cash paid for investments 5,100,000.00 5,100,000.00
Net increase in pledged loans
Net cash used for acquiring
subsidiaries and other operating
units
Other cash paid relating to
investment activities 158,901.51 158,901.51
Sub-total of cash outflows from
investment activities 69,340,003.33 62,079,617.02 111,775,124.60 111,675,124.60
Net cash flows from investing
activities -69,051,416.29 -61,825,693.98 -111,743,271.60 -111,645,271.60
3. Cash Flows from Financing
Activities:
Cash received from absorbing
investment 0.00 0.00
Including: Cash received by
subsidiaries from increase in
minority interests
Cash received from borrowings 250,865,127.14 230,000,000.00 326,000,000.00 305,000,000.00
Cash received from issuing
debentures
Other proceeds relating to
financing activities 2,119,172.32 1,952,325.66
Sub-total of cash inflows from
financing activities 250,865,127.14 230,000,000.00 328,119,172.32 306,952,325.66
Cash paid for settling debts 75,743,172.95 75,000,000.00 102,000,000.00 85,000,000.00
Cash paid for distribution of
dividends or profit or reimbursing
interest
12,041,097.79 11,251,662.49 10,658,349.60 10,039,816.00
Including: dividends or profit paid
by subsidiaries to minority
interests
Other cash payments relating to
financing activities 248,969.63 138,341.62 426,365.58 180,177.93The First Quarterly Report 2010 of Hubei Sanonda Co., Ltd.
9
Sub-total of cash outflows from
financing activities 88,033,240.37 86,390,004.11 113,084,715.18 95,219,993.93
Net cash flows from financing
activities 162,831,886.77 143,609,995.89 215,034,457.14 211,732,331.73
4. Effect of foreign exchange rate
changes on cash and cash
equivalents
5. Net increase in cash and cash
equivalents -24,404,868.52 -10,292,983.05 109,091,597.20 106,398,321.88
Add : Cash and cash equivalents
at year-begin 474,460,623.29 424,584,953.40 562,832,319.76 490,154,426.30
6. Cash and cash equivalents at
the end of the year 450,055,754.77 414,291,970.35 671,923,916.96 596,552,748.18
4.4 Auditor’s report
Auditor’s opinion: un-audited
