HUBEI SANONDA CO., LTD.
REPORT FOR THE THIRD QUARTER OF 2012
I. Important Notes
The Board of Directors, the Supervisory Committee and directors, supervisors and senior management of Hubei
Sanonda Co., Ltd. (hereinafter referred to as “the Company”) hereby guarantee that this report contains no false
information, misleading statements or material omissions, and will, individually and collectively, accept
responsibility for the factuality, accuracy and completeness of this report.
All directors attended the board session for reviewing this report.
Mr. Li Zuorong, Person-in-charge of the Company, Mr. He Xuesong, Person-in-charge of the accounting work and
the accounting organ (Financial manager) hereby confirm the factuality and completeness of the Financial Report
in this quarterly report.
II. Company Profile
(I) Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
√ Yes □No □ Inapplicable
Item 30 Sept. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (RMB Yuan) 2,719,154,626.05 2,292,650,234.81 18.6%
Owners’ equity attributable to
shareholders of the Company 1,209,394,544.00 1,156,347,732.27 4.59%
(RMB Yuan)
Share capital (Share) 593,923,220.00 593,923,220.00 0%
Net assets per share
attributable to shareholders of
2.04 1.95 4.61%
the Company (RMB
Yuan/share)
YoY
Jul.-Sept. 2011 increase/decr YoY
Item Jul.-Sept. 2012 ease (%) Jan.-Sept. 2012 increase/decr
Before After After ease (%)
adjustment adjustment adjustment
Gross operating
665,268,757.09 469,771,678.07 490,770,365.92 35.56% 1,782,024,034.16 19.83%
revenues (RMB Yuan)
Net profit attributable
to shareholders of the
25,375,618.98 16,549,367.79 5,834,776.44 334.90% 49,361,997.17 36.40%
Company (RMB
Yuan)
Net cash flow from
operating activities -- -- -- -- 316,714,525.50 176.17%
(RMB Yuan)
Net cash flow per
share from operating
-- -- -- -- 0.53 176.17%
activities (RMB
Yuan/share)
Basic EPS (RMB
0.0427 0.0278 0.0098 335.71% 0.0831 36.45%
Yuan/share)
1
Diluted EPS (RMB
0.0427 0.0278 0.0098 335.71% 0.0831 36.45%
Yuan/share)
Weighted average
2.13% 1.46% 0.54% 1.59% 4.18% 1%
ROE (%)
Weighted average
ROE after deducting
2.10% 1.35% 0.95% 1.15% 4.15% 0.63%
non-recurring gains
and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Amount during
Item Jan.-Sept. 2012 (RMB Notes
Yuan)
Gains and losses on disposal of non-current assets -35,821.47
Tax rebate, reduction or exemption due to un-authorized
approval or the lack of formal approval documents
Government grants recognized in the current year, except
for those acquired in the ordinary course of business or
753,888.89
granted at certain quotas or amounts according to the
country’s unified standards
Capital occupation fees received from non-financial
enterprises that are included in current gains and losses
Gains generated when the investment costs of the
Company’s acquiring subsidiaries, associates and joint
ventures are less than the fair value of identifiable net assets
in the investees attributable to the Company in the
acquisition of the investments
Exchange gains and losses of non-monetary assets
Gains and losses through entrusting others to invest or
manage assets
Various asset impairment provisions due to acts of God such
as natural disasters
Gains and losses on debt restructuring
Enterprise reorganization expenses, such as expenses on
employee settlement and integration
Gains and losses on the parts exceeding the fair value when
prices of transactions become unfair
Net current gains and losses from the period-begin to the
combination date of subsidiaries due to business
combinations under the same control
Gains and losses on contingent matters which are irrelevant
to the normal operation of the Company
Gains and losses on fair value changes of transactional
financial assets and liabilities, and investment gains on
disposal of transactional financial assets and liabilities and
available-for-sale financial assets, except for the effective
hedging business related to the Company’s normal operation
Reversal of impairment provisions for accounts receivable
which are separately tested for impairment signs
Gains and losses on entrustment loans from external parties
Gains and losses on fair value changes of investing
properties for which the fair value method is adopted for
subsequent measurement
Current gain and loss effect due to a just-for-once
adjustment to current gains and losses according to
requirements of taxation and accounting laws and
2
regulations
Custodian fee income from entrusted operations with the
Company
Other non-operating incomes and expenses besides the
-306,408.38
items above
Other gain and loss items that meet the definition of
non-recurring gains and losses
Minority interests effects 15,797.38
Income tax effects -102,914.76
Total 324,541.66 --
“Other gain and loss items that meet the definition of non-recurring gains and losses” & non-recurring gain and
loss items recognized as recurring gain and loss items according to the natures and characteristics of the
Company’s normal business
Involved amount (RMB
Item Notes
Yuan)
(II) Total number of shareholders and top 10 shareholders at the period-end
Total number of shareholders 78,574
Particulars about shares held by the top ten shareholders holding tradable shares
Number of tradable shares held Type and number of shares
Name of shareholder
at period-end Type Number
SANONDA GROUP
118,887,202 RMB ordinary shares 118,887,202
CORPORATION
STATE-OWNED ASSETS
ADMINISTRATION BUREAU 4,169,266 RMB ordinary shares 4,169,266
OF QICHUN COUNTY
CHINA MERCHANTS Domestically listed foreign
2,793,507 2,793,507
SECURITIES (HK) CO., LTD. shares
JINGZHOU SHASHI
DISTRICT UNION RURAL 2,500,000 RMB ordinary shares 2,500,000
CREDIT COOPERATION
CHINA OPPORTUNITIES H-B Domestically listed foreign
1,750,000 1,750,000
FUND shares
GUOTAI JUNAN
Domestically listed foreign
SECURITIES(HONGKONG) 1,684,090 1,684,090
shares
LIMITED
ZHOU JIN 1,590,000 RMB ordinary shares 1,590,000
BOZUN INVESTMENT
1,569,889 RMB ordinary shares 1,569,889
COMPANY LIMITED
CHEN QIAOLING 1,390,830 RMB ordinary shares 1,390,830
Domestically listed foreign
LIU GUOCHENG 1,366,000 1,366,000
shares
Particulars about shareholders
3
III. Significant Events
(I) Significant changes in major accounting data, financial highlights and reasons for these changes
√Applicable □Inapplicable
Items of
30 Sept. 31 Dec.
financial Increase/decrease +/-% Main reasons for change
2012 2011
statements
The Company secured more short-term borrowings and collected
Monetary funds 49,851 21,959 27,892 127.02%
more payments.
Notes
1,449 3,668 -2,219 -60.50% Some notes receivables were used for paying for goods.
receivable
Sales income increased and settlement ways with recourse were
Accounts
23,384 10,622 12,762 120.15% mostly adopted for export, which resulted in a long settlement
receivable
period.
Prepayments 5,671 1,537 4,134 268.97% More prepayments for equipment and raw materials
Other
4,264 2,441 1,823 74.68% More export tax rebates receivable
receivables
Short-term
51,514 29,314 22,200 75.73% More capital needs for technical innovations
borrowings
Accounts
19,878 12,264 7,614 62.08% More payables for raw materials and construction
payable
Taxes and fares
-1,149 -2,041 892 -43.70% More export tax rebates
payable
Accounts
received in 8,944 5,496 3,448 62.74% More advances from customers
advance
Other payables 7,255 4,203 3,052 72.61% More selling expenses unpaid
Non-current
liabilities due 22,455 9,699 12,756 131.52% More long-term borrowings became due within one year.
within one year
Long-term More long-term borrowings became due within one year and
29,000 50,756 -21,756 -42.86%
borrowings turned into non-current liabilities due within one year.
Items of
30 Sept. Same period
financial Increase/decrease +/-% Main reasons for change
2012 of last year
statements
Non-operating
98 70 28 40.00% A greater loss on fixed asset disposal
expenses
Income tax Total profit increased and income tax expenses increased
2,150 1,372 778 56.71%
expenses accordingly.
Net profit
attributable to
4,936 3,619 1,317 36.39% More sales
owners of the
Company
Net cash flows
from operating 31,671 11,468 20,203 176.17% Sales increased and cash inflows increased accordingly.
activities
Net cash flows
from investing -11,535 -16,999 5,464 32.14% Decrease of investments
activities
Net cash flows
from financing 5,944 25,477 -19,533 -76.67% More loans were repaid.
activities
4
(II) Progress of significant events and its influence, as well as the analysis and explanation on solutions
1. About non-standard audit opinion
□Applicable √Inapplicable
2. The Company offers capital to the controlling shareholder or its related parties or provides external
guarantees in violation of the prescribed procedures.
□Applicable √Inapplicable
3. Signing and execution of significant contracts concerning routine operation
□Applicable √Inapplicable
4. Others
√Applicable □Inapplicable
On 2 May 2012, the 12th Session of the 6th Board of Directors was convened, at which a significant asset
reorganization issue regarding the Company issuing shares for asset purchase was reviewed and approved. On 10
May 2012, the Company disclosed the Preplan of Hubei Sanonda Co., Ltd. for Issuing Shares for Asset Purchase
& Related-party Transaction and other relevant announcements. During the reporting period, audit, appraisal and
the like on the assets to be bought in were proceeding. The Company is now proactively communicating with
Huai’an Government and relevant national departments on assets, safe production, environmental protection,
taxation and other issues involved in the reorganization. There is some degree of uncertainty about whether all the
said problems can be solved, which may affect the final decision of the whole plan.
On 8 Jun. 2012, the 2nd Special Session of the 6th Board of Directors for 2012 was convened, at which the
Proposal on Liquidating Hubei Sanonda Tianmen Agrochemical Co., Ltd. and the Proposal on Combining the
Controlled Subsidiary Sanonda (Jingzhou) Pesticides and Chemicals Co., Ltd. were reviewed and approved.
During the reporting period, regarding the liquidation of Hubei Sanonda Tianmen Agrochemical Co., Ltd., the plan
of the Company was to acquire 15% equity interests of Hubei Sanonda Tianmen Agrochemical Co., Ltd. held by
Hubei Sanonda Foreign Trading Co., Ltd. and thus make Hubei Sanonda Tianmen Agrochemical Co., Ltd. one of
the Company’s wholly-funded subsidiaries and then proceed with the liquidation. Currently, the audit and
appraisal on the said equity interests have been finished. According to requirements of transferring state-owned
equity interests, the equity transfer is in progress.
During the reporting period, the Company was handling matters regarding acquiring 10% equity interests of
Sanonda (Jingzhou) Pesticides and Chemicals Co., Ltd. held by Sanonda Group Corporation. After the equity
transfer is finished, Sanonda (Jingzhou) Pesticides and Chemicals Co., Ltd. will become one of the Company’s
wholly-funded subsidiaries, which will be convenient for the merger.
(III) Commitments of the Company or shareholders with an over 5% shareholding made in or carried
down into the reporting period
□Applicable √Inapplicable
(IV) Predict the 2012 annual operating results
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 reporting period compared with the same period of the last year
according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
5
(V) Other significant events that need to be explained
1. Securities investment
□Applicable √Inapplicable
2. Investments in derivatives
□Applicable √Inapplicable
3. Derivative investments held at the period-end
□Applicable √Inapplicable
4. Researches, visits and interviews received in the reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided
by the Company
Inquiring about
whether the earnings
in the semi-annual
report are predicted
Communication by to increase or not,
24 Jul. 2012 The Company Individual Individual investor
telephone and the progress of
reorganization, etc.,
with no written
materials provided
by the Company.
Inquiring about what
products are
produced by the
assets involved in
the reorganization,
Communication by and is there any
31 Jul. 2012 The Company Individual Individual investor
telephone protective
measurement for
B-share price? With
no written materials
provided by the
Company.
Inquiring about
whether the
announcement on
the progress of
reorganization is the
latest disclosed
Communication by information or not,
7 Sept. 2012 The Company Individual Individual investor
telephone and the business
performance for the
third quarterly
report. With no
written materials
provided by the
Company.
5. Corporate bonds issued
Any corporate bonds issued?
6
□ Yes √ No
IV. Appendix
(I) Financial statements
Consolidated statements or not?
√ Yes □ No □ Inapplicable
The currency unit for data of the financial statements below is RMB Yuan unless otherwise specified.
1. Consolidated balance sheet
Prepared by Hubei Sanoda Co., Ltd.
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 498,513,161.79 219,587,687.99
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable 14,489,274.40 36,684,056.23
Accounts receivable 233,842,810.25 106,218,693.29
Accounts paid in advance 56,709,112.63 15,366,338.39
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividend receivable
Other accounts receivable 42,641,424.91 24,413,841.54
Financial assets purchased under
agreements to resell
Inventories 279,983,642.81 297,952,963.89
Non-current assets due within 1 year
Other current assets 14,374.73
Total current assets 1,126,179,426.79 700,237,956.06
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 9,153,782.63 9,153,782.63
Investing property 4,515,012.50 4,635,212.50
Fixed assets 1,206,021,797.54 1,114,276,784.03
Construction in progress 214,854,814.27 303,864,055.51
Engineering materials
Disposal of fixed assets 24,179.54
Production biological assets
7
Oil-gas assets
Intangible assets 144,583,379.34 147,453,152.21
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 13,822,233.44 13,029,291.87
Other non-current assets
Total of non-current assets 1,592,975,199.26 1,592,412,278.75
Total assets 2,719,154,626.05 2,292,650,234.81
Current liabilities:
Short-term borrowings 515,135,752.43 293,139,068.38
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 90,000,000.00
Accounts payable 198,779,216.88 122,637,168.06
Accounts received in advance 89,443,539.36 54,962,481.73
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 12,494,447.44 11,657,468.95
Tax payable -11,490,002.53 -20,410,811.16
Interest payable
Dividend payable 349,463.30 349,463.30
Other accounts payable 72,554,666.59 42,034,152.27
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of
securities
Non-current liabilities due within 1 year 224,550,000.00 96,990,000.00
Other current liabilities
Total current liabilities 1,191,817,083.47 601,358,991.53
Non-current liabilities:
Long-term borrowings 290,000,000.00 507,560,000.00
Bonds payable
Long-term payables 650,000.00 650,000.00
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 17,761,569.13 17,614,680.98
Total non-current liabilities 308,411,569.13 525,824,680.98
Total liabilities 1,500,228,652.60 1,127,183,672.51
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 593,923,220.00 593,923,220.00
8
Capital reserves 265,719,285.01 266,649,062.72
Less: Treasury stock
Specific reserves 22,461,607.13 17,847,014.86
Surplus reserves 80,383,814.33 80,383,814.33
Provisions for general risks
Retained profits 246,906,617.53 197,544,620.36
Foreign exchange difference
Total equity attributable to owners of the
1,209,394,544.00 1,156,347,732.27
Company
Minority interests 9,531,429.45 9,118,830.03
Total owners’ (or shareholders’) equity 1,218,925,973.45 1,165,466,562.30
Total liabilities and owners’ (or
2,719,154,626.05 2,292,650,234.81
shareholders’) equity
Legal representative: Li Zuorong Person-in-charge of the accounting work: He Xuesong
Chief of the accounting division: He Xuesong
2. Balance sheet of the Company
Prepared by Hubei Sanoda Co., Ltd.
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 406,677,695.27 178,056,420.12
Transactional financial assets
Notes receivable 6,852,474.40 35,470,074.23
Accounts receivable 224,894,897.86 107,116,214.14
Accounts paid in advance 52,868,579.83 19,942,535.80
Interest receivable
Dividend receivable 650,000.00
Other accounts receivable 169,971,683.48 139,147,365.19
Inventories 257,646,285.99 249,816,677.70
Non-current assets due within 1 year
Other current assets
Total current assets 1,119,561,616.83 729,549,287.18
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 77,768,711.36 76,768,711.36
Investing property 4,515,012.50 4,635,212.50
Fixed assets 1,170,810,749.69 1,075,433,427.78
Construction in progress 83,015,013.25 168,798,220.23
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
9
Intangible assets 129,954,735.30 132,784,006.82
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 9,222,098.54 8,852,524.81
Other non-current assets
Total of non-current assets 1,475,286,320.64 1,467,272,103.50
Total assets 2,594,847,937.47 2,196,821,390.68
Current liabilities:
Short-term borrowings 439,750,000.00 279,000,000.00
Transactional financial liabilities
Notes payable 90,000,000.00
Accounts payable 194,292,806.85 101,223,780.57
Accounts received in advance 89,823,326.66 32,554,691.41
Employee’s compensation payable 11,611,713.22 8,669,946.00
Tax payable 5,955,518.64 -1,071,376.94
Interest payable
Dividend payable 349,463.30 349,463.30
Other accounts payable 53,064,644.73 34,105,455.15
Non-current liabilities due within 1 year 224,550,000.00 96,990,000.00
Other current liabilities
Total current liabilities 1,109,397,473.40 551,821,959.49
Non-current liabilities:
Long-term borrowings 290,000,000.00 507,560,000.00
Bonds payable
Long-term payables 650,000.00 650,000.00
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 7,403,888.89 7,947,777.78
Total non-current liabilities 298,053,888.89 516,157,777.78
Total liabilities 1,407,451,362.29 1,067,979,737.27
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 593,923,220.00 593,923,220.00
Capital reserves 263,799,837.18 263,799,837.18
Less: Treasury stock
Specific reserves 16,904,901.20 12,647,237.00
Surplus reserves 80,383,814.33 80,383,814.33
Provisions for general risks
Retained profits 232,384,802.47 178,087,544.90
Foreign exchange difference
Total owners’ (or shareholders’) equity 1,187,396,575.18 1,128,841,653.41
Total liabilities and owners’ (or
2,594,847,937.47 2,196,821,390.68
shareholders’) equity
Legal representative: Li Zuorong Person-in-charge of the accounting work: He Xuesong
10
Chief of the accounting division: He Xuesong
3. Consolidated income statement for the reporting period
Prepared by Hubei Sanoda Co., Ltd.
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total operating revenues 665,268,757.09 490,770,365.92
Including: Sales income 665,268,757.09 490,770,365.92
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 630,162,773.90 482,511,112.91
Including: Cost of sales 553,267,177.44 415,394,092.02
Interest expenses
Handling charge and commission
expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 433,283.73 218,684.18
Selling and distribution expenses 28,316,137.72 24,031,632.57
Administrative expenses 29,511,912.55 23,818,027.31
Financial expenses 21,743,721.92 14,511,626.55
Asset impairment loss -3,109,459.46 4,537,050.28
Add: Gain/(loss) from change in fair value
(“-” means loss)
Gain/(loss) from investment (“-”
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 35,105,983.19 8,259,253.01
Add: non-operating income 543,747.90 1,610.15
Less: non-operating expense 134,824.47 229,517.23
Including: loss from non-current
asset disposal
IV. Total profit (“-” means loss) 35,514,906.62 8,031,345.93
Less: Income tax expense 9,830,694.39 1,574,171.81
V. Net profit (“-” means loss) 25,684,212.23 6,457,174.12
Including: Net profit achieved by
combined parties before the combinations
Attributable to owners of the
25,375,618.98 5,834,776.44
Company
Minority shareholders’ income 308,593.25 622,397.68
11
VI. Earnings per share -- --
(I) Basic earnings per share 0.0427 0.0098
(II) Diluted earnings per share 0.0427 0.0098
VII. Other comprehensive incomes
VIII. Total comprehensive incomes 25,684,212.23 6,457,174.12
Attributable to owners of the
25,375,618.98 5,834,776.44
Company
Attributable to minority shareholders 308,593.25 622,397.68
Where business mergers under the same control occurred in this reporting period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
Legal representative: Li Zuorong Person-in-charge of the accounting work: He Xuesong
Chief of the accounting division: He Xuesong
4. Income statement of the Company for the reporting period
Prepared by Hubei Sanoda Co., Ltd.
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total sales 637,098,239.28 398,366,551.82
Less: cost of sales 532,557,709.62 338,041,558.93
Business taxes and surcharges 153,306.03 43,234.14
Distribution expenses 26,976,368.03 16,115,798.97
Administrative expenses 23,051,713.61 18,875,825.57
Financial costs 21,295,296.92 13,721,599.87
Impairment loss -1,698,362.97 3,708,463.37
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) 34,762,208.04 7,860,070.97
Add: non-business income 543,747.90 -1,457,069.76
Less: non-business expense 62,217.49
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) 35,243,738.45 6,403,001.21
Less: income tax expense 8,793,238.10 789,612.18
IV. Net profit (“-” means loss) 26,450,500.35 5,613,389.03
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income
VII. Total comprehensive income 26,450,500.35 5,613,389.03
Legal representative: Li Zuorong Person-in-charge of the accounting work: He Xuesong
Chief of the accounting division: He Xuesong
12
5. Consolidated income statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Hubei Sanoda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total operating revenues 1,782,024,034.16 1,487,094,408.28
Including: Sales income 1,782,024,034.16 1,487,094,408.28
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 1,710,783,265.68 1,437,018,625.34
Including: Cost of sales 1,509,828,349.49 1,246,184,000.01
Interest expenses
Handling charge and commission
expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 919,610.03 861,578.80
Selling and distribution expenses 63,994,345.97 59,897,284.07
Administrative expenses 72,695,281.86 67,080,505.89
Financial expenses 53,740,115.89 50,092,314.84
Asset impairment loss 9,605,562.44 12,902,941.73
Add: Gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 71,240,768.48 50,075,782.94
Add: non-operating income 1,395,228.96 1,537,113.52
Less: non-operating expense 983,569.92 698,628.40
Including: loss from non-current
327,787.29
asset disposal
IV. Total profit (“-” means loss) 71,652,427.52 50,914,268.06
Less: Income tax expense 21,502,345.75 13,716,602.80
V. Net profit (“-” means loss) 50,150,081.77 37,197,665.26
Including: Net profit achieved by
combined parties before the combinations
Attributable to owners of the Company 49,361,997.17 36,188,457.43
Minority shareholders’ income 788,084.60 1,009,207.83
VI. Earnings per share -- --
(I) Basic earnings per share 0.0831 0.0609
(II) Diluted earnings per share 0.0831 0.0609
13
VII. Other comprehensive incomes
VIII. Total comprehensive incomes 50,150,081.77 37,197,665.26
Attributable to owners of the
49,361,997.17 36,188,457.43
Company
Attributable to minority shareholders 788,084.60 1,009,207.83
Where business mergers under the same control occurred from 1 Jan. 2012 to 30 Sept. 2012, the net profit achieved by the merged
parties before the business mergers was RMB 0.
Legal representative: Li Zuorong Person-in-charge of the accounting work: He Xuesong
Chief of the accounting division: He Xuesong
6. Income statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Hubei Sanoda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total sales 1,662,142,564.92 1,259,165,708.53
Less: cost of sales 1,419,473,803.80 1,065,499,579.58
Business taxes and surcharges 376,063.86 239,450.04
Distribution expenses 54,127,342.00 38,378,757.40
Administrative expenses 55,486,949.11 50,053,548.23
Financial costs 52,831,390.15 47,715,057.15
Impairment loss 7,542,666.16 11,404,084.65
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
650,000.00 650,000.00
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) 72,954,349.84 46,525,231.48
Add: non-business income 1,395,228.96 66,197.57
Less: non-business expense 407,677.49 17,016.00
Including: loss from non-current
215,460.00
asset disposal
III. Total profit (“-” means loss) 73,941,901.31 46,574,413.05
Less: income tax expense 19,644,643.74 11,643,603.26
IV. Net profit (“-” means loss) 54,297,257.57 34,930,809.79
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income
VII. Total comprehensive income 54,297,257.57 34,930,809.79
Legal representative: Li Zuorong Person-in-charge of the accounting work: He Xuesong
Chief of the accounting division: He Xuesong
7. Consolidated cash flow statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Hubei Sanoda Co., Ltd.
14
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities
1,576,684,833.56 1,385,464,182.19
and rendering of service
Net increase of deposits from customers
and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of original
insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of tradable
financial assets
Cash received from interest, handling
charges and commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase
business
Tax refunds received 22,510,639.31 63,643,094.84
Other cash received relating to operating
24,545,447.31 36,838,112.62
activities
Subtotal of cash inflows from operating
1,623,740,920.18 1,485,945,389.65
activities
Cash paid for goods and services 1,101,636,419.79 1,154,295,593.27
Net increase of customer lendings and
advances
Net increase of funds deposited in the
central bank and amount due from banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 93,835,129.78 80,167,357.17
Various taxes paid 21,815,958.23 22,572,299.03
Other cash payment relating to operating
89,738,886.88 114,230,931.49
activities
Subtotal of cash outflows from operating
1,307,026,394.68 1,371,266,180.96
activities
Net cash flows from operating activities 316,714,525.50 114,679,208.69
II. Cash flows from investing activities:
Cash received from withdrawal of
investments
Cash received from return on
investments
Net cash received from disposal of fixed 822,000.16 1,648,417.17
assets, intangible assets and other
15
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to investing
activities
Subtotal of cash inflows from investing
822,000.16 1,648,417.17
activities
Cash paid to acquire fixed assets,
116,171,486.38 145,533,891.68
intangible assets and other long-term assets
Cash paid for investment 26,017,144.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries and
other business units
Other cash payments relating to
86,244.59
investing activities
Subtotal of cash outflows from investing
116,171,486.38 171,637,280.27
activities
Net cash flows from investing activities -115,349,486.22 -169,988,863.10
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority
shareholder investments by subsidiaries
Cash received from borrowings 731,463,596.41 755,667,550.21
Cash received from issuance of bonds
Other cash received relating to financing
207,175.66 11,766,275.65
activities
Subtotal of cash inflows from financing
731,670,772.07 767,433,825.86
activities
Repayment of borrowings 599,466,912.36 445,381,347.63
Cash paid for interest expenses and
51,748,123.20 59,587,421.08
distribution of dividends or profit
Including: dividends or profit paid by
350,000.00
subsidiaries to minority shareholders
Other cash payments relating to
21,012,927.01 7,695,845.66
financing activities
Sub-total of cash outflows from financing
672,227,962.57 512,664,614.37
activities
Net cash flows from financing activities 59,442,809.50 254,769,211.49
IV. Effect of foreign exchange rate
117,625.02
changes on cash and cash equivalents
V. Net increase in cash and cash
260,925,473.80 199,459,557.08
equivalents
Add: Opening balance of cash and cash
219,587,687.99 207,943,720.75
equivalents
VI. Closing balance of cash and cash
480,513,161.79 407,403,277.83
equivalents
Legal representative: Li Zuorong Person-in-charge of the accounting work: He Xuesong
Chief of the accounting division: He Xuesong
16
8. Cash flow statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Hubei Sanoda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities
1,426,520,140.32 1,144,294,474.81
and rendering of service
Tax refunds received 12,650,502.53 53,937,733.63
Other cash received relating to operating
24,531,371.63 11,412,205.47
activities
Subtotal of cash inflows from operating
1,463,702,014.48 1,209,644,413.91
activities
Cash paid for goods and services 988,325,474.98 951,703,076.42
Cash paid to and for employees 79,695,583.53 64,635,897.51
Various taxes paid 15,932,137.40 14,624,800.63
Other cash payment relating to operating
66,760,029.18 177,794,545.97
activities
Subtotal of cash outflows from operating
1,150,713,225.09 1,208,758,320.53
activities
Net cash flows from operating activities 312,988,789.39 886,093.38
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on
investments
Net cash received from disposal of fixed
assets, intangible assets and other 822,000.16 1,317,064.50
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
822,000.16 1,317,064.50
activities
Cash paid to acquire fixed assets,
112,145,874.52 128,104,926.93
intangible assets and other long-term assets
Cash paid for investment 26,017,144.00
Net cash paid to acquire subsidiaries and
other business units
Other cash payments relating to
1,000,000.00 87,738.59
investing activities
Subtotal of cash outflows from investing
113,145,874.52 154,209,809.52
activities
Net cash flows from investing activities -112,323,874.36 -152,892,745.02
III. Cash Flows from Financing Activities:
Cash received from capital
contributions
Cash received from borrowings 535,750,000.00 650,000,000.00
Cash received from issuance of bonds
Other cash received relating to
2,918,002.64
financing activities
17
Subtotal of cash inflows from financing
535,750,000.00 652,918,002.64
activities
Repayment of borrowings 465,000,000.00 275,500,000.00
Cash paid for interest expenses and
42,793,575.66 42,042,399.63
distribution of dividends or profit
Other cash payments relating to
18,000,000.00 6,496,950.23
financing activities
Sub-total of cash outflows from financing
525,793,575.66 324,039,349.86
activities
Net cash flows from financing activities 9,956,424.34 328,878,652.78
IV. Effect of foreign exchange rate
-64.22
changes on cash and cash equivalents
V. Net increase in cash and cash
210,621,275.15 176,872,001.14
equivalents
Add: Opening balance of cash and
178,056,420.12 141,059,742.96
cash equivalents
VI. Closing balance of cash and cash
388,677,695.27 317,931,744.10
equivalents
Legal representative: Li Zuorong Person-in-charge of the accounting work: He Xuesong
Chief of the accounting division: He Xuesong
(II) Audit report
Auditor’s opinion un-audited
18
