Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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Shenzhen China Bicycle Company (Holdings) Limited
Summary of Semi-Annual Report 2009
§1. Important Notes
1.1 Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company)
hereby confirm that there are no any fictitious statements, misleading statements, or important
omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the
reality, accuracy and completion of the whole contents.
The summary of semi-annual report is abstracted from the semi-annual report 2009; and full text of
the semi-annual report is published on the Internet website http://www.cninfo.com.cn in the mean
time. The investors are suggested to read the full text of semi-annual report 2009 to understand
more details.
1.2 The Semi-annual Financial Report 2009 of the Company has not been audited.
1.3 Person in Charge of the Company Wu Jun, Person in Charge of Accounting Works Wang Cheng
and Person in Charge of Accounting Institution (Accounting Supervisor) Sun Longlong hereby
confirm the truthfulness and completeness of the Financial Report in the Semi-annual Report 2009.
§2. Company Profile
2.1 Basic information
Short form of stock SST ZHONGHUA, ST ZHONGHUA – B
Stock code 000017, 200017
Listed stock exchange Shenzhen Stock Exchange
Secretary of the Board Authorized Representative of Stock
Affairs
Name Li Hai Cui Hongxia
Contact address No. 3008, Buxin Road, Shenzhen No. 3008, Buxin Road, Shenzhen
Telephone 0755-28181666, 25516998 0755-28181569, 25516998
Fax 0755-28181009, 25516620 0755-28181009, 25516620
E-mail dmc@szcbc.com dmc@szcbc.com
2.2 Major Financial Data and Indexes
2.2.1 Major accounting data and financial indexes
Unit: RMB
At the end of this
report period
At the period-end
of last year
Increase/decrease at the end of
this report period compared
with that in period-end of last
year (%)
Total assets 190,150,317.40 190,897,705.53 -0.39%
Owners’ equity attributable to shareholders of
the listed company -1,835,483,874.45 -1,803,059,381.39 1.80%Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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Share capital 479,433,003.00 479,433,003.00 0.00%
Net assets per share attributable to
shareholders of the listed
company(RMB/Share)
-3.8284 -3.7608 1.80%
This report period
(Jan. to Jun.)
The same period
of last year
Increase/decrease in this report
period year-on-year (%)
Total operating income 112,494,583.85 111,109,918.15 1.25%
Operating profit -56,735,729.52 -11,846,915.08 378.91%
Total profit -56,402,631.25 -4,286,665.48 1,215.77%
Net profit attributable to shareholders of the
listed company -56,332,908.69 -4,615,635.71 1,120.48%
Net profit attributable to shareholders of the
listed company after deducting non-recurring
gains and losses
-56,666,006.96 -12,175,885.31 365.40%
Basic earnings per share (RMB/Share) -0.1175 -0.0096 1,123.96%
Diluted earnings per share (RMB/Share) -0.1175 -0.0096 1,123.96%
Return on equity (%)
Net cash flow arising from operating
activities 753,569.02 -6,185,663.33 -112.18%
Net cash flow per share arising from
operating activities (RMB/Share) 0.0016 -0.0129 -112.18%
2.2.2 Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB
Items of non-recurring gains and losses Amount Notes (If applicable)
Gains and losses from disposal of non-current assets 218,726.57
Other non-operating income and expense excluded the
aforementioned business 128,593.36
Other gains/losses items conforming to the definition of
non-recurring gains and losses -14,221.66
Total 333,098.27 -
2.2.3 Differences between CAS and IAS:
□Applicable √Inapplicable
§3. Changes in Share Capital and Particulars about Shareholders
3.1 Statement of change in shares
□Applicable √Inapplicable
3.2 Particulars about shares held by the top ten shareholders and the top ten shareholders of
circulation share
Unit: Share
Total shareholders 33,452Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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Particulars about shares held by the top ten shareholders
Full name of shareholders Nature of
shareholders
Proportion of
shares held
Total amount
of shares held
Amount of
non-circulating
shares held
Amount of shares
pledged or frozen
Shenzhen Guocheng
Energy Investment
Development Co., Ltd.
Domestic
non-state-owned
legal person
13.58% 65,098,412 65,098,412 0
Hong Kong Zhuorun
Technology Co., Ltd.
Foreign legal
person 9.20% 44,104,246 44,104,246 40,000,000
HONGKONG （ LINK ）
BICYCLES LIMITED
Foreign legal
person 5.42% 26,000,000 26,000,000 26,000,000
Shenzhen Kangsheng
Investment Development
Co., Ltd.
Domestic
non-state-owned
legal person
2.50% 11,968,590 11,968,590 0
Xinliyi Investment
Management Co., Ltd.
Domestic
non-state-owned
legal person
2.34% 11,200,000 11,200,000 0
Airline Trust and
Investment Co., Ltd.
State-owned
legal person 2.16% 10,340,000 10,340,000 0
Shenzhen New Land Tool
Consultants PTE. LTD
Domestic
non-state-owned
legal person
2.06% 9,857,556 9,857,556 0
China Resources SZITIC
Trust Co., Ltd.
State-owned
legal person 1.25% 6,000,000 6,000,000 0
Jingchao Investment Co.,
Ltd.
Foreign legal
person 1.04% 5,001,944 5,001,944 0
Shanghai Yanxin
Industrial Investment Co.,
Ltd.
Domestic
non-state-owned
legal person
0.73% 3,500,000 3,500,000 0
Particulars about shares held the top ten circulating shareholders
Full name of shareholders Total circulating shares held Type of shares
Shenzhen New Land Tool Consultants PTE.
LTD. 9,857,556 RMB common share
Zhang Huiling 1,959,473 Domestically listed foreign shares
TANG JING YUAN 1,924,500 Domestically listed foreign shares
HARUHIKO SUZUKI 1,770,000 Domestically listed foreign shares
Lu Huazhong 1,487,000 Domestically listed foreign shares
Li Jinling 1,238,402 Domestically listed foreign shares
CORE PACIFIC-YAMAICHI INTERNATIONAL
(H.K.) LIMITED 1,228,000 Domestically listed foreign shares
Jiang Lan 1,215,800 Domestically listed foreign shares
Jin Mingfei 1,187,549 Domestically listed foreign shares
Xiao Lizhu 1,127,649 Domestically listed foreign sharesShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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Explanation on associated
relationship among the top
ten shareholders or
consistent action
Among the top ten shareholders of circulation share, the Company was unaware of
whether there existed associated relationship or whether there existed consistent actionist
regulated in the Management Measure of Information Disclosure on Change of
Shareholding for Listed Companies.
3.3 Particulars about changes in controlling shareholder and actual controller of the Company
□Applicable √Inapplicable
§4. Particulars about Directors, Supervisors, and Senior Executives
4.1 Particulars about changes in shares held by directors, supervisors and senior executives
□Applicable √Inapplicable
§5. Report of Board of Directors
5.1 Statement of main operations classified according to industries and products
Unit: RMB’0000
Main operations classified according to industries
Classified according to
industries or products
Income from
operations
Cost of
operations
Gross profit
ratio (%)
Increase/decre
ase in income
from
operations
year-on-year
(%)
Increase/decre
ase in cost of
operations
year-on-year
(%)
Increase/decrea
se in gross
profit ratio
year-on-year
(%)
Bicycles and
accessories and fittings 10,743.32 10,163.86 5.39% 2.49% -0.52% 2.86%
Property management 106.93 189.58 -77.29% -7.51% 21.12% -41.91%
Main operations classified according to products
Bicycles and
accessories and fittings 10,743.32 10,163.86 5.39% 2.49% -0.52% 2.86%
Property management 106.93 189.58 -77.29% -7.51% 21.12% -41.91%
Of which: In the report period, the total related transaction amount which the listed Company sold
products and provided labor forces to the controlling shareholders and its subsidiaries totaled to
RMB 0.00.
5.2 Particulars about main operations classified according to areas
Unit: RMB’0000
Areas Income from operations
Increase/decrease in income
from operations over last year
(%)
Shandong 3,232.62 6.94%
Henan 2,759.45 8.93%
Hebei 1,469.46 3.00%
Jiangsu 1,277.19 8.20%
Shanxi 224.54 -34.63%
5.3 Explanation on reasons of material changes in main operations and its structure
□Applicable √InapplicableShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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5.4 Explanation on reasons of material changes in profitability (gross profit ratio) of main
operations compared with that of last year
□Applicable √Inapplicable
5.5 Analysis on reasons of material changes in profit structure compared with the previous year
√Applicable □Inapplicable
Great exchange income occurred in last year due to the appreciation of Renmibi, but the exchange
rate of Renminbi was comparatively steady in this year.
5.6 Application of the raised proceeds
5.6.1 Use of the raised proceeds
□Applicable √Inapplicable
5.6.2 Particulars about the projects changed
□Applicable √Inapplicable
5.7 The modification plan of Board to the business plan for the second half year
□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 material change compared with the corresponding
period of the last year and explanation on reason
□Applicable √Inapplicable
5.9 Explanation of the Management on “Qualified Opinion” from the Certified Public Accountants
in the report period by the Board of Directors
□Applicable √Inapplicable
5.10 Explanation of the Management on changes and disposal of the issues involved in “Qualified
Opinion” from the Certified Public Accountants in the last year by the Board of Directors
√Applicable □Inapplicable
Shenzhen Pengcheng Certified Public Accountants Co., Ltd. issued audit report with disclaimer of
opinions for the 2008 Financial Report of the Company. Due to that the debt reorganization work of
the Company had not been completely finished in 2008, so risk of bearing huge debt still remained
with many significant uncertainties. The CPAs was not able to offer opinion on the financial debt, tax
payable, contingent proceedings, lawsuits and sustainable operation.
Explanation presented by the Board for change and treatment of the matters involved in the
Non-standard Report issued by CPAs for last year is as follows:
1. Financial debt
Shenzhen Pengcheng CPAs held that: the letters replied from the financial creditors for the inquiry
showed that the Company missed to record an interest balance totaling to RMB 265,875,786.92, and
some letters were replied without confirmation on interest for the principal of loans totaling to RMB
114,558,000.00, and principal of loans which haven’t been replied totaled to RMB 194,255,951.99,
so it was not available to confirm influence on financial statement by financial debt.
The Company provided explanation in Note 13.1, Financial Statement for 2008, for details of interest
confirmation balance: when some creditors implemented the document ((2004) No.6) released by
China Committee on Bank Supervision, they had different understanding on this document with theShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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Company. The document noticed that: Bank of China and other 10 financial organizations stop
calculating the interest of the Company for 3 years since Jan 1st of 2002 and at the same time, exempt
all the interest payable of the Company (including penalty interest and compound interest) occurred
before Dec 31st of 2001.
Some assets management companies and banks considered that the Company was expected to return
the interest exempted and stop-calculated, and some assets management companies had not
confirmed the proceeding of interest calculation. The Company had transferred all the interest of
loans payable owed before Dec 31st of 2001, RMB 357,993,665.24, (including penalty interest and
compound interest) to capital public reserve. Interest was stopped with calculation from Jan 1st of
2002 to Dec 31st of 2004. The exempt term was due on Dec 31st of 2004. The Company held it was
not necessary for him to return the interest exempted and stop-calculated, so when the term was due,
the Company started to withdraw interest according to normal loan for those interests which needed
to be returned. The stop-calculated interest and compound interest from Jan 1st of 2002 to Dec 31st of
2004 was not accrued.
Besides, the financial debt of the Company was formed in history which had occurred for a long time
and the amount of period–end had not changed for years. Body qualification of some creditors had
been transferred and the particular personnel for handling had also changed, so the creditors needed
time to check clearly the amount of creditor and debt of both involved parties and that was why some
creditors had not replied the letters to confirm.
The Company would continuously advance the account-check work with the relevant creditors of
financial debt, trying as soon as possible to check clearly the interest on principal of the financial
debt. Once progress is made, relevant information would be disclosed according to relevant
regulation.
2. Issues on tax payable
Shenzhen Pengcheng Certified Public Accountants Co., Ltd. thought that: in the audit process, the
CPAs implemented audit procedures including inspection and inquiry, inquiring book tax amount
payable, custom guarantee and penalty balance totaling to RMB 118,292,319.46. No reply has been
received, so it was impossible for the CPAs to confirm the influence on financial statement of the
Company.
Due to the Company’s tax payable was formed in the past, which had a long time, there was no
newly-increased tax payable in the report period, forming reasons were complex, personnel of
specific affairs had changed, and tax department needed time to check clear the debts rights and
amounts of both sides, therefore, we are not able to receive confirmation letter from tax department.
According to the regulations in Administration of Tax Collection regulated by the State, it is possible
to repay the penalties and overdue fine. The Company will continue to follow up the work of
checking account of tax department, check clear the amount of tax payable as soon as possible, and
will disclose information according to the requirements of relevant regulations if there is some
progress.
3. Contingent events and lawsuits
Shenzhen Pengcheng Certified Public Accountants believed that: card information for loans of the
Company was not accordant because of system updating and other seasons; during the auditing, the
CPAs made field verification in relevant courts involved in lawsuits for external guarantee and
overdue loans of the Company as substitute audit procedure, while no confirmation document had
been obtained from the relevant courts. Besides, due to that it was hard to implement other effective
audit procedures, it was unable for us to judge whether the Company had disclosed complete
contingent events and lawsuits, and impacts on its financial statement.Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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The historically formed loan and guarantee lawsuit had existed rather long time; in the report period,
there was no newly-added undisclosed guarantee events and lawsuits; part courts in charge of those
lawsuits changed, and specific responsible people also altered; the court needs time to check details
and amount of the case, so the court didn’t write back for confirmation. The Company will continue
follow up the check work by certified public accountants with related courts, and checks clear the
contingent events and lawsuits as soon as possible. If there is any progress, information disclosure
will be made according to requirements of relevant regulations.
4. Matters on sustainable operations
Shenzhen Pengcheng Certified Public Accountants thought that, the Company’ asset could seriously
not offset the debt; the measures on the reconciliation procedure of the bankruptcy to settle the debts
had no material progress and could not be able to get adequate and proper audit evidence to confirm
it could effectively improve the continuous operations of the Company; thus, we could not judge
whether the financial report 2008 prepared by the Company based on imagined continuous
operations was proper.
Since March 2003, the promotion on debt restructuring by the former largest creditor of the
Company-China Huarong Asset Management Corporation acquired breakthrough development, the
Plan on Reorganization of Shenzhen China Bicycle Company (Holdings) Limited has obtained the
approval from relevant department such as China Banking Regulatory Commission, in which all the
interests of the financial debts the Company owed ended Dec. 31, 2004 were exempted and stopped
interest calculation , and it was under the stage of implementation.
The Company and International Finance Corporation signed Reconciled Agreement on Mar 29th of
2007, in which it was agreed to settle all the credits and liabilities between the two parties with USD
equivalent to RMB 2 million. The liabilities amount was consisted of principal approximately
amounting to USD 3.87 million and an accrued interest approximately amounting to RMB 42.78
million. The two largest creditors of the Company-Shenzhen Guosheng Energy Investment
Development Co., Ltd. and Guangdong Sunrise Holdings Co., Ltd. agreed to stop calculation of
interest of consolidated loan of RMB 69,558,600 for the whole year of 2007, and RMB 66,226,800
for 2008. The interest would also not be collected in future. The largest creditor of the
Company-Shenzhen Guosheng Energy Investment Development Co., Ltd. agreed to stop calculation
of interest of loan of RMB 9,124,600 and loan of USD 84,797,600 for the whole year of 2009. The
interest would also not be collected in future.
Besides progress was made in debt restructure, the Company also made continuous growth in its
main operation and the main operation continued to make profit. Payment pressure of the Company
in short-term has been sharply brought down; the sustainable operation ability has been improved
comparatively.
On Dec. 30, 2006, China Huarong Asset Management Corporation transferred its creditor right to
Shenzhen Guosheng Energy Investment Development Co., Ltd. After the change of the largest
creditor, the former largest creditor China Huarong Asset Management Corporation applied to
Shenzhen Intermediate People’ Court for bankruptcy of the Company on August 1, 2005, planning to
settle the debts of the Company completely through bankruptcy and reform measures; the new
creditor Shenzhen Guosheng Energy Investment Development Co., Ltd. was responsible for
promoting the restructuring works on relevant debts and reorganization, and it was speeding up
making scheme for debt restructuring and has got certain progress.
Meanwhile, big shareholders, relevant creditors and senior executives of the Company are actively
seeking for support from government and tax department for solving history debts in debt
restructuring.
The Board of the Company believed that: as the debt and asset restructure of the Company
continuously made progress, together with the continuous growth of the Company’s performance, itsShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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operation environment, operation status and sustainable operation ability would be improved further.
§6. Significant Events
6.1 Purchases and sales of assets and assets restructure
6.1.1 Assets purchased or acquired
□Applicable √Inapplicable
6.1.2 Assets sold
□Applicable √Inapplicable
6.1.3 Progress of the events and their influence on the Company’s 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’0000
Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
Name of the
Company
guaranteed
Date of happening
(Date of signing
agreement)
Amount of
guarantee
Guarantee
type
Guarantee
term
Complete
implement
ation or not
Guarantee for related
party (Yes or no)
Guangdong Sunrise
Group Co., Ltd. June 20, 1996 504.55 Joint
responsibility 6 months No No
Guangdong Sunrise
Group Co., Ltd. July 26, 2006 2,800.00 Joint
responsibility 4 months No No
Guangdong Sunrise
Group Co., Ltd. Sep. 30, 1999 681.83 Joint
responsibility 12 months No No
Guangdong Sunrise
Group Co., Ltd. Apr. 30, 1998 260.00 Joint
responsibility 11 months No No
Guangdong Sunrise
Group Co., Ltd. July 30, 1997 250.00 Joint
responsibility 7 months No No
Guangdong Sunrise
Group Co., Ltd. June 4, 1997 300.00 Joint
responsibility 8 months No No
Gintian Industry
(Group) Co., Ltd. Oct. 30, 1998 5,000.00 Joint
responsibility 6 months No No
Shenzhen Tianma
Cosmetics Co., Ltd. Sep. 30, 1994 800.00 Joint
responsibility 12 months No No
Total amount of guarantee in the report
period 0.00
Total balance of guarantee at the end of
the report period (A) 10,596.38
Guarantee of the Company for the controlling subsidiaries
Total amount of guarantee for controlling
subsidiaries in the report period 0.00
Total balance of guarantee for controlling
subsidiaries at the end of the report period 7,817.02Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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(B)
Particulars about the total guarantee of the Company (Including the guarantee for the controlling subsidiaries)
Total amount of guarantee(A+B) 18,413.40
The proportion of the total amount of
guarantee in the net assets of the
Company
-10.03%
Including:
Amount of guarantee for shareholders,
actual controller and its related parties(C) 0.00
The debts guarantee amount provided for
the guaranteed parties whose
assets-liability ratio exceed 70% directly
or indirectly(D)
18,413.40
Proportion of total amount of guarantee in
net assets of the Company exceed 50%(E) 18,413.40
Total amount of the aforesaid three
guarantees(C+D+E) 36,826.80
Explanations on possibly bearing joint
and several liquidating responsibilities for
undue guarantees
Naught
6.3 Current non-operating related credits and liabilities
√Applicable □Inapplicable
Unit: RMB’0000
Funds offered to related parties Funds offered to the listed company by
Related parties related parties
Amount occurred Balance Amount occurred Balance
Shenzhen Guocheng Energy
Investment Development Co.,
Ltd.
0.00 0.00 16.48 60,039.64
Shenzhen Jinhuan Printing
Format Co., Ltd. 0.00 0.00 0.00 276.98
Total 0.00 0.00 16.48 60,316.62
Of which: in the report period, the occupied occurring amount and balance that listed company
provided capital to its shareholders and subsidiaries were respectively RMB 0.00 and RMB 0.00.
6.4 Material lawsuits and arbitrations
□Applicable √Inapplicable
6.5 Other significant events and analysis on their influences and solutions
□Applicable √Inapplicable
6.5.1 Particulars about securities investment
□Applicable √Inapplicable
6.5.2 Equity of other listed companies held
□Applicable √InapplicableShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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6.5.3 Occupation and its progress of paying off on the fund in semi-annual year of 2009
□Applicable √Inapplicable
Special explanations and independent opinions on the occupations of the related parties’ funds and
external guarantees of the Company presented by the independent directors
According to the regulations of Concerning Some Issues on Regulating the Funds between Listed
Companies and Associated Parties and Listed Companies’ Provision of Guaranty to Other Parties
(No. 56 [2003] promulgated by CSRS) as the independent directors of Shenzhen China Bicycle
Company (Holdings) Limited, we made inspection on the accumulative and current external
guarantees of the Company and also on the guarantee getting out of line, together according to the
Special Explanation on Fund Occupancy and Guarantee Getting out of Line of the Controlling
Shareholders and Other Associated parties of Shenzhen China Bicycle Company (Holdings)
Limited issued by Shenzhen Pengcheng CPAs (No. 205 SPSGZZ [2009]) and relevant data. Here
comes the detail explanation:
During the report period, no guarantee or guarantee out of line has been provided by the Company
for its controlling shareholders and the subordinate enterprises. The guarantee or guarantee out of
line provided by the Company for its controlling shareholders and the subordinate enterprises were
those happened from 1996 to 1999, belonging to the events left in history. Due to that most
guaranteed parities were not able to repay, the Company treated most guarantees as the projected
liabilities which amounted to RMB 184,133,984.92.
6.5.4 Implementation of commitments made by the Company, and its shareholders, directors,
supervisors and senior executives
□Applicable √Inapplicable
6.6 Registration form for receiving research, communication and interview in the report period.
Date Place Way The received
parties
Contents discussed and materials
supplied
Jan. -June,
2009
Office of the
Company
Phone
communication
Tradable
shareholder
Progresses of Share Merger
Reform and debts restructuring of
the Company
§7. Financial Report
7.1 Auditing opinion
Financial Report √Un-audited □Audited
7.2 Financial statement
7.2.1 Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited June 30, 2009 Unit: RMB
Items MeArmgeoru n t at pPeariroedn-t eCnodm pany MerAgmero u nt at yPeaarr-ebnet gCino mpany
Current assets:
Monetary funds 19,350,870.76 413,653.88 10,086,599.53 417,444.51
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable 7,119,177.00 5,408,792.00Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
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Accounts receivable 1,143,405.51 138,096,336.45 385,033.41 136,120,228.45
Accounts paid in advance 482,806.08 504,440.40
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 29,606,742.39 51,422,147.96 42,193,937.90 87,659,723.49
Purchase restituted finance
asset
Inventories 42,805,701.00 25,691,296.43 36,197,343.93 26,922,910.94
Non-current asset due within
one year
Other current assets
Total current assets 100,508,702.74 215,623,434.72 94,776,147.17 251,120,307.39
Non-current assets:
Granted loans and advances
Finance asset available for
sales
Held-to-maturity investment
Long-term account
receivable
Long-term equity investment 2,619,840.50 2,619,840.50 2,619,840.50 2,619,840.50
Investment property 9,988,474.06 9,988,474.06 10,311,261.40 10,311,261.40
Fixed assets 50,284,579.78 49,674,225.38 56,010,305.12 55,334,097.37
Construction in progress
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 26,748,720.32 26,748,720.32 27,180,151.34 27,180,151.34
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset
Other non-current asset
Total non-current asset 89,641,614.66 89,031,260.26 96,121,558.36 95,445,350.61
Total assets 190,150,317.40 304,654,694.98 190,897,705.53 346,565,658.00
Current liabilities:
Short-term loans 399,551,503.18 338,628,113.67 399,661,355.35 338,713,085.90
Loan from central bank
Absorbing deposit andShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
12
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable
Accounts payable 135,035,592.14 294,751,039.04 130,714,884.86 324,940,555.98
Accounts received in
advance 30,478,401.63 14,605,306.04 21,333,035.66 14,605,306.04
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 1,580,769.82 1,444,837.18 1,686,297.83 1,550,365.19
Taxes payable 94,645,350.51 94,160,637.53 95,399,029.08 94,220,632.13
Interest payable
Dividend payable
Other accounts payable 164,177,338.26 130,401,031.73 168,604,764.50 134,698,784.49
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due
within 1 year 872,849,065.72 872,849,065.72 873,090,594.28 873,090,594.28
Other current liabilities 142,848,681.83 142,804,212.07 118,929,914.04 118,881,087.74
Total current liabilities 1,841,166,703.09 1,889,644,242.98 1,809,419,875.60 1,900,700,411.75
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 184,133,984.92 184,133,984.92 184,133,984.92 184,133,984.92
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 184,133,984.92 184,133,984.92 184,133,984.92 184,133,984.92
Total liabilities 2,025,300,688.01 2,073,778,227.90 1,993,553,860.52 2,084,834,396.67
Owner’s equity (or shareholders’
equity):
Paid-in capital (or share
capital) 479,433,003.00 479,433,003.00 479,433,003.00 479,433,003.00
Capital public reserve 434,801,979.96 434,801,979.96 410,893,564.33 410,893,564.33
Less: Inventory shares
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -2,782,392,084.4 -2,716,031,742.89 -2,726,059,175.73 -2,661,268,533.01Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
13
2
Balance difference of
foreign currency translation
Total owner’s equity attributable
to parent company
-1,835,483,874.4
5 -1,769,123,532.92 -1,803,059,381.39 -1,738,268,738.67
Minority interests 333,503.84 0.00 403,226.40
Total owner’s equity -1,835,150,370.6
1 -1,769,123,532.92 -1,802,656,154.99 -1,738,268,738.67
Total liabilities and owner’s
equity 190,150,317.40 304,654,694.98 190,897,705.53 346,565,658.00
7.2.2 Profit Statement
Prepared by Shenzhen China Bicycle Company (Holdings) Limited January-June, 2009 Unit: RMB
Amount in this period Amount in last period
Items Merger
Parent
Company Merger
Parent
Company
I. Total operating income 112,494,583.85 6,937,308.60 111,109,918.15 10,407,975.69
Including: Operating income 112,494,583.85 6,937,308.60 111,109,918.15 10,407,975.69
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 169,230,313.37 62,033,616.75 122,334,310.63 26,474,147.33
Including: Operating cost 106,593,086.70 3,974,352.73 107,134,404.03 10,071,763.63
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expense
Operating tax and extras 71,335.20 0.00 88,423.82 84.83
Sales expenses 2,684,550.07 242,795.77 1,963,943.81 355,680.10
Administration expenses 13,170,221.92 11,078,381.49 20,057,572.33 19,136,897.19
Financial expenses 47,481,613.43 47,508,580.71 -8,166,429.57 -4,346,674.63
Losses of devaluation of asset -770,493.95 -770,493.95 1,256,396.21 1,256,396.21
Add: Changing income of fair
value(Loss is listed with “-“)
Investment income (Loss is
listed with “-”) -622,522.60 -622,522.60
Including: Investment income
on affiliated company and joint
ventureShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
14
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss is
listed with “-”) -56,735,729.52 -55,096,308.15 -11,846,915.08 -16,688,694.24
Add: Non-operating income 347,319.93 347,319.93 7,910,464.46 7,887,299.46
Less: Non-operating expense 14,221.66 14,221.66 350,214.86 131,502.93
Including: Disposal loss of
non-current asset 18,300.00 0.00
IV. Total Profit (Loss is listed
with “-”) -56,402,631.25 -54,763,209.88 -4,286,665.48 -8,932,897.71
Less: Income tax expense 0.00 0.00 0.00 0.00
V. Net profit (Net loss is listed with
“-”) -56,402,631.25 -54,763,209.88 -4,286,665.48 -8,932,897.71
Net profit attributable to
owner’s of parent company -56,332,908.69 -54,763,209.88 -4,615,635.71 -8,932,897.71
Minority shareholders’ gains
and losses -69,722.56 0.00 328,970.23 0.00
VI. Earnings per share
i. Basic earnings per share -0.1175 -0.0096
ii. Diluted earnings per share -0.1175 -0.0096
7.2.3 Cash Flow Statement
Prepared by Shenzhen China Bicycle Company (Holdings) Limited January-June, 2009 Unit: RMB
Amount in this period Amount in last period
Items Merger Parent Company Merger Parent Company
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor
services
71,289,969.34 0.00 82,404,686.93 6,318,365.75
Net increase of customer
deposit and interbank deposit
Net increase of loan from
central bank
Net increase of capital
borrowed from other financial
institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Net increase of insured
savings and investment
Net increase of disposal of
transaction financial asset
Cash received from interest,
commission charge and
commission
Net increase of capital
borrowed
Net increase of returnedShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
15
business capital
Write-back of tax received
Other cash received
concerning operating activities 5,979,012.67 8,803,805.33 2,777,163.76 4,001,491.34
Subtotal of cash inflow
arising from operating activities 77,268,982.01 8,803,805.33 85,181,850.69 10,319,857.09
Cash paid for purchasing
commodities and receiving labor
service
60,326,101.39 0.00 66,735,699.57 1,433,399.55
Net increase of customer
loans and advances
Net increase of deposits in
central bank and interbank
Cash paid for original
insurance contract compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
workers 7,809,094.78 886,540.42 14,441,210.71 1,469,877.21
Taxes paid 2,363,221.09 1,410,843.29 2,751,409.74 1,622,913.34
Other cash paid concerning
operating activities 6,016,995.73 6,496,280.63 7,439,194.00 5,745,697.58
Subtotal of cash outflow
arising from operating activities 76,515,412.99 8,793,664.34 91,367,514.02 10,271,887.68
Net cash flows arising from
operating activities 753,569.02 10,140.99 -6,185,663.33 47,969.41
II. Cash flows arising from
investing activities:
Cash received from
recovering investment
Cash received from
investment income
Net cash received from
disposal of fixed, intangible and
other long-term assets
550,000.00 10,444,667.52 105,942.92
Net cash received from
disposal of subsidiaries and
other units
Other cash received
concerning investing activities 8,000,000.00
Subtotal of cash inflow
from investing activities 8,550,000.00 10,444,667.52 105,942.92
Cash paid for purchasing
fixed, intangible and other
long-term assets
39,287.43 13,931.62 56,788.00 45,388.00
Cash paid for investment
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activitiesShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
16
Subtotal of cash outflow
from investing activities 39,287.43 13,931.62 56,788.00 45,388.00
Net cash flows arising from
investing activities 8,510,712.57 -13,931.62 10,387,879.52 60,554.92
III. Cash flows arising from
financing activities
Cash received from
absorbing investment
Including: Cash received
from absorbing minority
shareholders’ investment by
subsidiaries
Cash received from loans
Cash received from issuing
bonds
Other cash received
concerning financing activities
Subtotal of cash inflow
from financing activities
Cash paid for settling debts
Cash paid for dividend and
profit distributing or interest
paying
Including: Dividend and
profit of minority shareholder
paid by subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow
from financing activities
Net cash flows arising from
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
-10.36 -1,216.65
V. Net increase of cash and cash
equivalents 9,264,271.23 -3,790.63 4,200,999.54 108,524.33
Add: Balance of cash and
cash equivalents at the period
-begin
10,086,599.53 417,444.51 14,062,198.43 477,660.27
VI. Balance of cash and cash
equivalents at the period -end 19,350,870.76 413,653.88 18,263,197.97 586,184.60Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
17
7.2.4 Consolidated Statement on Changes of Owners' Equity
Prepared by Shenzhen China Bicycle Company (Holdings) Limited Semi-Annual of 2009 Unit: RMB
Amount in this report period Amount in last year
Owners' equity attributable to the parent company Owners' equity attributable to the parent company
Items
Paid-up
capital
(Share
capital)
Capital
reserve
s
Less:
Treasur
y Stock
Reason
able
reserve
Surplus
reserve
s
Genera
l risk
provisi
on
Retaine
d profit
Others
Minorit
y’s
equity
Total
owners’
equity
Paid-up
capital
(Share
capital)
Capital
reserve
s
Less:
Treasur
y Stock
Reason
able
reserve
Surplus
reserve
s
Genera
l risk
provisi
on
Retaine
d profit
Others
Minorit
y’s
equity
Total
owners’
equity
I. Balance at the end of last
year
479,43
3,003.0
0
410,89
3,564.3
3
32,673,
227.01
-2,726,
059,17
5.73
403,22
6.40
-1,802,
656,15
4.99
479,43
3,003.0
0
362,02
7,636.6
4
32,673,
227.01
-2,681,
166,16
9.33
-1,807,
032,30
2.68
Add: Changes of accounting
policy
Error correction of the last
period
Others
II. Balance at the beginning
of this year
479,43
3,003.0
0
410,89
3,564.3
3
32,673,
227.01
-2,726,
059,17
5.73
403,22
6.40
-1,802,
656,15
4.99
479,43
3,003.0
0
362,02
7,636.6
4
32,673,
227.01
-2,681,
166,16
9.33
-1,807,
032,30
2.68
III. Increase/ Decrease in this
year (Decrease is listed with
"-")
23,908,
415.63
-56,332
,908.69
-69,722
.56
-32,494
,215.62
48,865,
927.69
-44,893
,006.40
403,22
6.40
4,376,1
47.69
(I) Net profit
-56,332
,908.69
-69,722
.56
-56,402
,631.25
-44,893
,006.40
403,22
6.40
-44,489
,780.00
(II) Profits and losses
calculating into owners'
23,908, 23,908, 48,865, 48,865,Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
18
equity 415.63 415.63 927.69 927.69
1. Net changing amount of
fair value of financial assets
available for sale
2. Effect of changes of other
owners' equity of invested
units under equity method
3. Effect of income tax
related to owners' equity
4. Others
23,908,
415.63
23,908,
415.63
48,865,
927.69
48,865,
927.69
Subtotal of (I)and (II)
23,908,
415.63
-56,332
,908.69
-69,722
.56
-32,494
,215.62
48,865,
927.69
-44,893
,006.40
403,22
6.40
4,376,1
47.69
(III) Owners' devoted and
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others
(IV) Profit distribution
1. Withdrawal of surplus
reserves
2. Withdrawal of general risk
provisions
3. Distribution for owners
(shareholders)Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
19
4. Others
(V) Carrying forward internal
owners' equity
1. Capital reserves conversed
to capital (share capital)
2. Surplus reserves conversed
to capital (share capital)
3. Remedying loss with
surplus reserve
4. Others
IV. Balance at the end of the
report period
479,43
3,003.0
0
434,80
1,979.9
6
32,673,
227.01
-2,782,
392,08
4.42
333,50
3.84
-1,835,
150,37
0.61
479,43
3,003.0
0
410,89
3,564.3
3
32,673,
227.01
-2,726,
059,17
5.73
403,22
6.40
-1,802,
656,15
4.99
7.2.5 Statement on Changes of Owners' Equity of Parent Company
Prepared by Shenzhen China Bicycle Company (Holdings) Limited Semi-Annual of 2009 Unit: RMB
Amount in this report period Amount in last year
Items
Paid-up
capital
(Share
capital)
Capital
reserves
Less:
Treasury
Stock
Reasonabl
e reserve
Surplus
reserves
Retained
profit
Total
owners’
equity
Paid-up
capital
(Share
capital)
Capital
reserves
Less:
Treasury
Stock
Reasonabl
e reserve
Surplus
reserves
Retained
profit
Total
owners’
equity
I. Balance at the end of last
year
479,433,00
3.00
410,893,56
4.33
32,673,227
.01
-2,661,268,
533.01
-1,738,268,
738.67
479,433,00
3.00
362,027,63
6.64
32,673,227
.01
-2,612,869,
231.77
-1,738,735,
365.12
Add: Changes of accounting
policyShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
20
Error correction of the last
period
Others
II. Balance at the beginning
of this year
479,433,00
3.00
410,893,56
4.33
32,673,227
.01
-2,661,268,
533.01
-1,738,268,
738.67
479,433,00
3.00
362,027,63
6.64
32,673,227
.01
-2,612,869,
231.77
-1,738,735,
365.12
III. Increase/ Decrease in this
year (Decrease is listed with
"-")
23,908,415
.63
-54,763,20
9.88
-30,854,794
.25
48,865,927
.69
-48,399,30
1.24
466,626.45
(I) Net profit
-54,763,20
9.88
-54,763,209
.88
-48,399,30
1.24
-48,399,301
.24
(II) Profits and losses
calculating into owners'
equity
23,908,415
.63
23,908,415.
63
48,865,927
.69
48,865,927.
69
1. Net changing amount of
fair value of financial assets
available for sale
2. Effect of changes of other
owners' equity of invested
units under equity method
3. Effect of income tax
related to owners' equity
4. Others
23,908,415
.63
23,908,415.
63
48,865,927
.69
48,865,927.
69
Subtotal of (I) and (II)
23,908,415
.63
-54,763,20
9.88
-30,854,794
.25
48,865,927
.69
-48,399,30
1.24
466,626.45
(III) Owners' devoted andShenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
21
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others
(IV) Profit distribution
1. Withdrawal of surplus
reserves
2. Distribution for owners
(shareholders)
3. Others
(V) Carrying forward internal
owners' equity
1. Capital reserves conversed
to capital (share capital)
2. Surplus reserves conversed
to capital (share capital)
3. Remedying loss with
surplus reserves
4. Others
IV. Balance at the end of the
report period
479,433,00
3.00
434,801,97
9.96
32,673,227
.01
-2,716,031,
742.89
-1,769,123,
532.92
479,433,00
3.00
410,893,56
4.33
32,673,227
.01
-2,661,268,
533.01
-1,738,268,
738.67Shenzhen China Bicycle Company (Holdings) Limited Summary of Semi-Annual Report 2009
22
7.3 Notes to financial statement
7.3.1 If there have been any changes to the accounting policy and accounting estimates, or
modification of accounting errors, give the relevant contents, reasons and the influenced numbers.
□Applicable √Inapplicable
7.3.2 If there have been any material changes to the consolidation scope of the financial statement,
give the reasons and the influenced numbers.
□Applicable √Inapplicable
7.3.3 If Non-standard Unqualified Opinion is supplied, list the related notes to the matters involved.
□Applicable √Inapplicable
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
August 13, 2009
