Shenzhen China Bicycle Company (Holdings) Limited
The Third Quarterly Report For 2010
(Full Text)
§1. Important Notes
1.1 Board of Directors and the Supervisory Committee of Shenzhen China Bicycle Company
(Holdings) Limited (hereinafter referred to as the Company) and its directors, supervisors and
senior executives 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.
1.2 The Third Quarterly Financial Report of 2010 has not been audited by CPAs.
1.3 Principal of the Company Luo Guiyou, Person in Charge of Accounting Works Zhang Zebing
and Person in Charge of Accounting Organ (Accounting Officer) Sun Longlong hereby confirm that
the Financial Report of the Third Quarterly Report is true and complete.
§2. Company Profile
2.1 Main accounting highlights and financial indexes:
Unit: RMB
2010.9.30 2009.12.31 Increase/decrease scope
(%)
Total assets (RMB) 169,115,150.40 169,696,420.47 -0.34%
Owners’ equities attributable to the
shareholders of listed company
(RMB)
-1,890,744,049.73 -1,861,014,519.67 1.60%
Share capital (Share) 551,347,947.00 479,433,003.00 15.00%
Net assets per share attributable to
the shareholders of listed company
(RMB/Share)
-3.43 -3.88 -11.60%
July-Sep. 2010
Increase/decrease
over the same
period of the last
year (%)
Jan.-Sep.2010
Increase/decrease
over the same
period of the last
year (%)
Total operating income (RMB) 99,681,222.94 16.01% 220,304,009.08 11.03%
Net profit attributable to the
shareholders of listed company
(RMB)
-9,676,290.03 -45.38% -61,395,650.44 -17.09%
Net cash flow arising from operating
activities (RMB) - - 8,232,616.23 -46.72%
Net cash flow arising from operating
activities per share (RMB/Share) - - 0.0149 -53.73%
Basic earnings per share
(RMB/Share) -0.0176 -52.43% -0.1114 -27.90%
Diluted earnings per share
(RMB/Share) -0.0176 -52.43% -0.1114 -27.90%
Weighted average return on equity
(%)
- - - -
Weighted average return on equity
after deducting non-recurring gains
and losses (%)
- - - -
Items of non-recurring gains and losses Amount from year Remarks2
begin to the end of
report period
Taxes returned and exemption that approved
exceeded authority or without official approval
document or non-accidental.
254,666.00 Taxes of land-use right
returned.
Gains and losses from debt restructuring 3,032,735.29
Interest-free from
creditor-Zhengda
Guoli Company
Other non-operating income and expenditure beside
for the aforementioned items 543,181.59
Total 3,830,582.88 -
2.2 Total number of shareholders at the end of the report period and shares held by the top
ten shareholders of circulation share
Unit: Share
Total number of shareholders
at the end of report period 34,858
Particulars about the shares held by the top ten shareholders with unrestricted conditions
Full name of shareholder Unrestricted shares held at
period-end Type of shares
GUOTAI JUNAN
SECURITIES(HONGKONG) LIMITED 9,010,543 Domestically listed
foreign shares
BOCI SECURITIES LIMITED 3,869,196 Domestically listed
foreign shares
Shenzhen New Land Tool Consultants PTE.
LTD. 3,000,000 RMB Common shares
TANG JING YUAN 2,213,175 Domestically listed
foreign shares
Celestial Securities Limited 2,199,990 Domestically listed
foreign shares
Zhang Huiling 2,053,261 Domestically listed
foreign shares
Lin Shaowei 2,018,600 Domestically listed
foreign shares
Xu Wanqi 1,478,787 Domestically listed
foreign shares
Li Jinling 1,453,062 Domestically listed
foreign shares
Zeng Yin 1,429,352 Domestically listed
foreign shares
§3. Significant Events
3.1 Particulars about material changes in items of main accounting statement and financial
index, and explanations of reasons
√Applicable □Inapplicable3
1. Monetary capital: increased by 25.96% in comparison with that of period-begin. Main reasons
accounting for the growth: Emmelle Company received the account for goods.
2. Note receivables: decreased by 96.55% in comparison with that of period-begin. Main reasons
accounting for the decline: most of the drafts are paid as account for goods by Emmelle in this
period.
3. Account receivable: increased by260.42% in comparison with that of period-begin. Main reasons
accounting for the growth: generated from operating activities.
4. Other account receivables: decreased by 20.35% in comparison with that of period-begin. Main
reasons accounting for the decline: payment of Jiangxi Lihua Investment project that payable to the
Company have been paid to creditor by Hong Kong Central Group in this period.
5. Inventory: increased by 25.05% in comparison with that of period-begin. Main reasons accounting
for the growth: inventory reserve for busy season from Emmelle Company.
6. Account payables: increased by 10.36% in comparison with that of period-begin. Main reasons
accounting for the growth: inventory reserve for busy season from Emmelle Company resulted in the
growth of account payable.
7. Wages payable: decreased by 59.75% in comparison with that of period-begin. Main reasons
accounting for decline: the economic compensation and wages payable that accrual have been paid.
8. Interest payable: increased by 22.21% in comparison with that of period-begin. Main reasons
accounting for the growth: the accrual of debt interest.
9. Paid-up capital (stock): increased by 15% in comparison with that of period-begin. Main reasons
accounting for the growth: share merger reform have been done and capitalizing of common reserves
in this period.
10. Capital reserve: decreased by 8.77 % in comparison with that of period-begin. Main reasons
accounting for decline: share merger reform have been done and capitalizing of common reserves in
this period together with the interests exempted from Guosheng Company were recorded into capital
reserve in this report period.
11. Sales expenses: increased by 30.81% in y-o-y comparison. Main reasons accounting for the
growth: sales expenses increased from Emmelle Company.
12. Financial expenses: decreased by 21.54% in year-on-year comparison. Main reasons accounting
for the decline: exchange gains increased from RMB revaluation in the report period.
13. Asset impairment losses: decreased by 99.35% in year-on-year comparison. Main reasons
accounting for the decline: charge back business of small-scale asset impairment losses occurred in
the period.
14. Non-operating income: decreased by 64.05% in year-on-year comparison. Main reasons
accounting for the decline: non-operating income in this period mainly generated from exempted
interest by partial creditors while at same period of last year, the non-operating income formed by
most of the eliminated guarantee debts and fixed assets disposing.
3.2 Progress of significant events, their influences, and analysis and explanation of their
solutions
3.2.1 Qualified opinion
√Applicable □Inapplicable
Shenzhen Pengcheng Certified Public Accountants Co., Ltd. issued audit report with disclaimer of
opinions for the 2009 Financial Report of the Company. Due to that the debt reorganization work of
the Company had not been completely finished in 2009, 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.
In the report period, 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:4
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 211,053,921.33, and
some letters were replied without confirmation on interest for the principal of loans totaling to RMB
76,170,169.82, and principal of loans which haven’t been replied totaled to RMB 80,890,643.04, so it
was not available to confirm influence on financial statement by financial debt.
The Company provided explanation in Note 10 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 the 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, so interest and compound interest from Jan 1st
of 2002 to Dec 31st of 2004 was not accrued. The Company should start for interest calculation when
the term was due.
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 118,913,018.88. Till the end of
auditing date, 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, 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.5
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.
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; 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 2009 prepared by the Company based on imagined continuous
operations was proper. Therefore, the Company and the larger creditor implemented the measures as
followed:
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
Company 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.
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.
On Dec. 30, 2006, China Huarong Asset Management Corporation transferred its creditor right to
Shenzhen Guosheng Energy Investment Development Co., Ltd.( “Guosheng Energy” for short).
Guosheng Energy activity promoted relevant debt restructuring and gains a substantial progress.
Concerning the change of largest shareholders of the Company , creditors and implementation of new
Bankruptcy Law, application of reorganization applied to Shenzhen Intermediate People’ Court by
Guosheng Energy in January 2010, according to regulation of Bankruptcy Law, for the purpose of
recovering and improving the sustainable operations of the Company. Recently, the court still in
approving. Shenzhen Guosheng Energy Investment Development Co., Ltd. consenting that stop
calculated the interest of whole 2010 of most of the debts owed by the Company and the
stop-calculation interest would not be calculated in future any more.
With promoting the work of debt restructuring, main business of the Company steadily developed6
and gains profit continuously at the same time. The short-tern payment pressure has been released
and has an improvement in sustainable operations. Board of the Directors considered that, with the
gradually progress in debt and assets reorganization, the operation environment, operation status and
the ability of sustainable operation of the Company might obtained a further improvement.
3.2.2 Particular about fund offers to controlling shareholders or associated parties and
external guarantee that against the regulation.
□Applicable √Inapplicable
3.2.3 Particular about signing and implementation on significant contracts of ordinary
management.
□Applicable √Inapplicable
3.2.4 Others
√Applicable □Inapplicable
1. On 14 January 2010, large shareholder of the Company-- Shenzhen Guosheng Energy Investment
Development Co., Ltd applied for reorganization for the Company to Shenzhen Intermediate People’
Court, according to regulation of Bankruptcy Law, for the purpose of recovering and improving the
sustainable operations of the Company. Recently, the court still in approving.
2. Large shareholder and largest creditor of the Company -- Shenzhen Guosheng Energy Investment
Development Co., Ltd. owned the Company’s credit of RMB 19,300,000 and $ 84,797,600 credit. By
signing the Transfer Agreement on Creditor’s Right on 31 May 2010, $ 21,968,300 credit, equivalent
to RMB 1.5 hundred million has been transferred to Shenzhen Zhengda Guoli Investment Co., Ltd.
Shenzhen Guosheng Energy Investment Development Co., Ltd. owned the credit of RMB 19,300,000
and $ 62,829,300 credit after transferring, and still to be the largest creditor of the Company.
Shenzhen Guosheng Energy Investment Development Co., Ltd. promised that the partial transferring
of the credit have no influence on the restructure work of the Company.
3. The large shareholder and large creditor of the Company – Shenzhen Guosheng Energy Investment
Development Co., Ltd. received the returning letters on Letter of Application for Stop-calculated debt
interest of 2010 of the Company: Agreed to stop calculating the RMB debt interest of RMB
9,124,618.59 and USD debt interest (Before 31 May 2010 was USD 84,797,624.57, from 1 June
2010 was USD62, 829,259.02) of whole year of 2010. The abovementioned interest will not be
collected in the later years. The stop-calculated interest have an actively influence on Company’s
sustainable operation.
4. The Company received a Letter of Creditor’s Right transferring and offer of debt reconciliation
from new creditor—Shenzhen Chengxingtai Investment Co., Ltd. on 8 September 2010. Knowing
from the letter, Shenzhen Zhengda Guoli Investment Co., Ltd. transferred the credit of the Company
as $ 21,968,365.55 (equivalent to RMB 1.5 hundred million approximately) to Shenzhen
Chengxingtai Investment Co., Ltd. and the Transfer Agreement on Creditor’s Right have been signed
on 2 September 2010. Through the preliminary discussion, the Company entered into a Comfort
Letter of Debt Reconciliation with Shenzhen Chengxingtai Investment Co., Ltd. on 14 September.
And the 4th Extraordinary General Shareholders’ Meeting held on 8 October 2010 approved the
proposal of debt reconciliation with Shenzhen Chengxingtai Investment Co., Ltd. On 15 October7
2010, the Company signed the Agreement on Debt Reconciliation with Chengxingtai Company with
agreement that RMB 14 million will paid to Chengxingtai Company by the Company for settling up
totally credit and debts between the two parties (approximately amounting to RMB 1.5 hundred
million). Recently, the agreement still in performance. Incomes from appoint transactional items and
the influence towards whole gains & losses of the Company still exist uncertainty due to the
un-implemented agreement.
3.3 Implementations of commitments by the Company, shareholders and actual controller
□Applicable √Inapplicable
3.4 Estimation of 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 of reason
√Applicable □Inapplicable
Forecast of
performances Losses
Year-begin to the end
of next report period
The same period
of last year Change of increase/decrease (%)
Estimated amount of
accumulative net
profit(RMB’0000)
About -8,000.00 -10,616.08 Declined
Basic earnings per
share(RMB/Share) About -0.1451 -0.2214 Declined
Explanations on
forecast of
performances
Net profit estimated amounting to –RMB80 million accumulatively in this
year.
The abovementioned estimated amount contained no influences from
followed significant items: the Company entered into a Comfort Letter of
debt reconciliation with Shenzhen Chengxingtai Investment Co., Ltd. on 14
September. And the 4th Extraordinary General Shareholders’ Meeting held on
8 October 2010 approved the Proposal of Debt Reconciliation with Shenzhen
Chengxingtai Investment Co., Ltd. On 15 October 2010, the Company
signed the Agreement on Debt Reconciliation with Chengxingtai Company
with agreement that RMB 14 million will paid to Chengxingtai Company by
the Company for settling up totally credit and debts between the two parties
(approximately amounting to RMB 1.5 hundred million). Incomes from
appoint transactional items and the influence towards whole gains & losses
of the Company still exist uncertainty due to the un-implemented agreement
Due to the losses in net profit in 2008 and in 2009, if there still have loss in
net profit in 2010, stock of the Company should be stop for listing temporary
by Shenzhen Stock Exchange according to relevant regulation of
“Regulation of Stock Listing”.8
3.5 Particulars about the other significant events which needed explanations
3.5.1 Particular about security investment
□Applicable √Inapplicable
3.5.2 Activities on receiving research, communication and interview in the report period
Date Place Way The received
parties
Contents discussed and
materials supplied
July-Sep. 2010 Office of the
Company
Communications by
telephone
Tradable
shareholder
Progresses of debts restructuring
of the Company
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about the positions of derivatives investment at the end of report period
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited Sep. 30, 2010 Unit: RMB
Balance at period-end Balance at year-begin
Items Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 28,004,836.93 592,096.08 22,232,425.07 365,121.06
Settlement provisions
Capital lent
Transaction finance
asset
Notes receivable 200,000.00 5,800,000.00
Accounts receivable 1,491,512.04 4,977,746.08 413,823.13 4,840,655.31
Accounts paid in
advance 191,187.08 195,298.09
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 19,290,913.46 39,585,483.01 24,221,035.93 44,469,377.15
Purchase restituted
finance asset
Inventories 40,721,106.31 20,161,200.57 32,564,369.59 20,240,562.11
Non-current asset due
within one year
Other current assets
Total current assets 89,899,555.82 65,316,525.74 85,426,951.81 69,915,715.639
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 real estate 27,675,864.88 27,675,864.88 31,399,514.80 31,399,514.80
Fixed assets 23,249,746.43 22,575,074.82 23,932,824.06 23,131,963.21
Construction in progress
Engineering material
Disposal of fixed asset
Productive biological
asset
Oil and gas asset
Intangible assets 25,670,142.77 25,670,142.77 26,317,289.30 26,317,289.30
Expense on Research
and Development
Goodwill
Long-term expenses to
be apportioned
Deferred income tax
asset
Other non-current asset
Total non-current asset 79,215,594.58 78,540,922.97 84,269,468.66 83,468,607.81
Total assets 169,115,150.40 143,857,448.71 169,696,420.47 153,384,323.44
Current liabilities:
Short-term loans 388,322,941.12 334,503,489.28 395,326,572.82 338,507,120.98
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable
Accounts payable 138,912,963.74 152,602,052.52 125,874,371.36 155,610,619.08
Accounts received in
advance 22,974,203.92 10,664,592.85 23,083,981.59 10,664,592.85
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 2,120,865.84 1,425,980.65 5,268,781.80 4,099,102.35
Taxes payable 96,337,465.98 94,964,408.73 96,149,009.88 94,821,236.83
Interest payable 202,674,059.15 202,649,009.15 165,838,645.23 165,838,645.23
Dividend payable
Other accounts payable 169,235,546.34 128,945,783.41 168,836,440.31 126,959,911.5310
Reinsurance payables
Insurance contract
reserve
Security trading of
agency
Security sales of agency
Non-current liabilities
due within 1 year 859,466,099.03 859,466,099.03 870,518,082.14 870,518,082.14
Other current liabilities 726,612.09 726,612.09 726,612.09 726,612.09
Total current liabilities 1,880,770,757.21 1,785,948,027.71 1,851,622,497.22 1,767,745,923.08
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account
payable
Special accounts
payable
Projected liabilities 179,088,442.92 179,088,442.92 179,088,442.92 179,088,442.92
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 179,088,442.92 179,088,442.92 179,088,442.92 179,088,442.92
Total liabilities 2,059,859,200.13 1,965,036,470.63 2,030,710,940.14 1,946,834,366.00
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or share
capital) 551,347,947.00 551,347,947.00 479,433,003.00 479,433,003.00
Capital public reserve 418,447,151.93 418,447,151.93 458,695,975.55 458,695,975.55
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 -2,893,212,375.67 -2,823,647,347.86 -2,831,816,725.23 -2,764,252,248.12
Balance difference of
foreign currency translation
Total owner’s equity
attributable to parent
company
-1,890,744,049.73 -1,821,179,021.92 -1,861,014,519.67 -1,793,450,042.56
Minority interests
Total owner’s equity -1,890,744,049.73 -1,821,179,021.92 -1,861,014,519.67 -1,793,450,042.56
Total liabilities and owner’s
equity 169,115,150.40 143,857,448.71 169,696,420.47 153,384,323.44
4.2 Profit statement in the report period
Prepared by Shenzhen China Bicycle Company (Holdings) Limited July-Sep. 2010 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent Company Consolidation Parent Company
I. Total operating income 99,681,222.94 8,760,291.18 85,921,058.05 5,641,746.60
Including: Operating income 99,681,222.94 8,760,291.18 85,921,058.05 5,641,746.6011
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 112,475,486.45 20,130,481.21 112,949,193.38 32,889,206.68
Including: Operating cost 93,083,590.36 2,904,697.21 81,886,243.72 4,014,435.59
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 52,036.39 30,878.63
Sales expenses 1,422,282.34 1,274,166.35
Administration expenses 5,033,099.19 4,325,803.69 5,737,762.17 4,834,798.43
Financial expenses 12,889,478.17 12,904,980.31 24,020,142.51 24,039,972.66
Losses of devaluation of
asset -5,000.00 -5,000.00
Add: Changing income of
fair value(Loss is listed with
“-”)
Investment income (Loss
is listed with “-”)
Including: Investment
income on affiliated company
and joint venture
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss is
listed with “-”) -12,794,263.51 -11,370,190.03 -27,028,135.33 -27,247,460.08
Add: Non-operating
income 3,075,150.11 3,075,150.11 10,429,190.25 10,392,190.25
Less: Non-operating
expense 13,050.00 50.00 1,007,352.46 1,006,982.46
Including: Disposal loss
of non-current asset
IV. Total Profit (Loss is listed
with “-”) -9,732,163.40 -8,295,089.92 -17,606,297.54 -17,862,252.29
Less: Income tax expense
V. Net profit (Net loss is listed
with “-”) -9,732,163.40 -8,295,089.92 -17,606,297.54 -17,862,252.29
Net profit attributable to
owner’s of parent company -9,676,290.03 -8,295,089.92 -17,716,000.80 -17,862,252.29
Minority shareholders’
gains and losses -55,873.37 109,703.26
VI. Earnings per share
i. Basic earnings per share -0.0176 -0.0150 -0.0370 -0.0373
ii. Diluted earnings per share -0.0176 -0.0150 -0.0370 -0.037312
VII. Other consolidated
income
VIII. Total consolidated
income -9,732,163.40 -8,295,089.92 -17,606,297.54 -17,862,252.29
Total consolidated income
attributable to owners of parent
company
-9,676,290.03 -8,295,089.92 -17,716,000.80 -17,862,252.29
Total consolidated income
attributable to minority
shareholders
-55,873.37 109,703.26
4.3 Profit statement from year-begin to the end of report period
Prepared by Shenzhen China Bicycle Company (Holdings) Limited Jan.-Sep. 2010 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent
Company Consolidation Parent
Company
I. Total operating income 220,304,009.08 16,786,439.47 198,415,641.90 12,579,055.20
Including: Operating income 220,304,009.08 16,786,439.47 198,415,641.90 12,579,055.20
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 285,530,242.40 80,032,902.09 282,179,506.75 94,922,823.43
Including: Operating cost 207,129,215.71 8,555,534.50 188,479,330.42 7,988,788.32
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 133,234.68 102,213.83
Sales expenses 5,178,284.04 3,958,716.42 242,795.77
Administration expenses 16,992,729.72 15,338,735.40 18,907,984.09 15,913,179.92
Financial expenses 56,101,778.25 56,143,632.19 71,501,755.94 71,548,553.37
Losses of devaluation of asset -5,000.00 -5,000.00 -770,493.95 -770,493.95
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is listed with
“-”)
Including: Investment income on
affiliated company and joint venture
Exchange income (Loss is listed with
“-”)
III. Operating profit (Loss is listed with “-”) -65,226,233.32 -63,246,462.62 -83,763,864.85 -82,343,768.23
Add: Non-operating income 3,874,312.88 3,868,412.88 10,776,510.18 10,739,510.18
Less: Non-operating expense 43,730.00 17,050.00 1,021,574.12 1,021,204.12
Including: Disposal loss of non-current13
asset
IV. Total Profit (Loss is listed with “-”) -61,395,650.44 -59,395,099.74 -74,008,928.79 -72,625,462.17
Less: Income tax expense
V. Net profit (Net loss is listed with “-”) -61,395,650.44 -59,395,099.74 -74,008,928.79 -72,625,462.17
Net profit attributable to owner’s of
parent company -61,395,650.44 -59,395,099.74 -74,048,909.49 -72,625,462.17
Minority shareholders’ gains and losses 39,980.70
VI. Earnings per share
i. Basic earnings per share -0.1114 -0.1077 -0.1545 -0.1515
ii. Diluted earnings per share -0.1114 -0.1077 -0.1545 -0.1515
VII. Other consolidated income
VIII. Total consolidated income -61,395,650.44 -59,395,099.74 -74,008,928.79 -72,625,462.17
Total consolidated income attributable to
owners of parent company -61,395,650.44 -59,395,099.74 -74,048,909.49 -72,625,462.17
Total consolidated income attributable to
minority shareholders 39,980.70
4.4 Cash flow statement from year-begin to the end of report period
Prepared by Shenzhen China Bicycle Company (Holdings) Limited Jan.-Sep. 2010 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent
Company Consolidation Parent
Company
I. Cash flows arising from operating
activities:
Cash received from selling commodities
and providing labor services 140,857,230.38 130,118,659.09
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 returned business capital
Write-back of tax received 254,666.00 254,666.00
Other cash received concerning
operating activities 15,252,809.49 18,959,550.55 15,578,855.96 13,499,751.26
Subtotal of cash inflow arising from
operating activities 156,364,705.87 19,214,216.55 145,697,515.05 13,499,751.26
Cash paid for purchasing commodities
and receiving labor service 117,785,046.37 105,652,132.59
Net increase of customer loans and14
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 12,788,271.08 1,292,297.45 11,527,392.05 1,274,043.62
Taxes paid 3,327,212.02 1,685,141.42 3,025,845.04 1,871,301.65
Other cash paid concerning operating
activities 14,231,560.17 13,559,175.64 10,039,799.20 10,402,773.94
Subtotal of cash outflow arising from
operating activities 148,132,089.64 16,536,614.51 130,245,168.88 13,548,119.21
Net cash flows arising from operating
activities 8,232,616.23 2,677,602.04 15,452,346.17 -48,367.95
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
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
Cash paid for purchasing fixed,
intangible and other long-term assets 2,460,204.37 2,450,627.02 321,062.43 18,330.62
Cash paid for investment
Net increase of mortgaged loans
Net cash received from subsidiaries and
other units
Other cash paid concerning investing
activities
Subtotal of cash outflow from investing
activities 2,460,204.37 2,450,627.02 321,062.43 18,330.62
Net cash flows arising from investing
activities -2,460,204.37 -2,450,627.02 8,228,937.57 -18,330.62
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
activities15
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
V. Net increase of cash and cash equivalents 5,772,411.86 226,975.02 23,681,273.38 -66,698.57
Add: Balance of cash and cash
equivalents at the period -begin 22,232,425.07 365,121.06 10,086,599.53 417,444.51
VI. Balance of cash and cash equivalents at
the period -end 28,004,836.93 592,096.08 33,767,872.91 350,745.94
4.5 Auditor’s report
Auditor’s opinions: Un-audited.
Board of the Directors of
Shenzhen China Bicycle Company (Holdings) Limited
October 26, 2010
