SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
1
Stock Code: 000019, 200019 Notice No: 2010-16
Short Form of the Stock: SHENSHENBAO-A, SHENSHENBAO-B
SHENZHEN SHENBAO INDUSTRIAL CO., LTD.
SUMMARY OF SEMI-ANNUAL REPORT 2010
§1. Important Notes
1.1 Board of Directors and Supervisory Committee of Shenzhen Shenbao Industrial Co., Ltd.
(hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby
confirm that there are no any important omissions, fictitious statements or serious misleading
information 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 2010; 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 2010 to understand
more details.
1.2 No director, supervisor and senior executive stated that he (she) couldn’t ensure the correctness,
accuracy and completeness of the contents of the Semi-annual Report 2010 or have objection to this
report.
1.3 All the directors attended the meeting on discussing the Semi-annual Report .
1.4 The Semi-annual Financial Report 2009 of the Company has not been audited.
1.5 Chairman of the Board Mr. Zheng Yuxi, General Manager Mr. Peng Ying and CFO Ms. Zeng
Suyan hereby confirm that the Financial Report of the Semi-annual Report is true and complete.
1.6 This Semi-annual report has been prepared in Chinese version and English version respectively.
In the event of difference in interpretation between the two versions, the Chinese report shall
prevail.
§2. Company Profile
2.1 Basic information
Short form of stock SHENSHENBAO-A, SHENSHENBAO-B
Stock code 000019, 200019
Listed stock exchange Shenzhen Stock Exchange
Secretary of the Board Securities affairs representative
Name Li Yiyan Zheng Guibo
Contact address
Southern part of 23/F, No.26 Ed
ucational Technology Building,
Zizhuqidao, 4th Road Zhuzilin,
Futian District, Shenzhen
Southern part of 23/F, No.26 Ed
ucational Technology Building,
Zizhuqidao, 4th Road Zhuzilin,
Futian District, Shenzhen
Telephone 0755-82027522 0755-82027522
Fax 0755-82027522 0755-82027522
E-mail lyy@sbsy.com.cn zgb@sbsy.com.cnSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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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 649,985,511.31 623,356,758.00 4.27
Owners’ equity attributable to
shareholders of the listed company
301,351,137.95 320,096,254.94 -5.86
Share capital 181,923,088.00 181,923,088.00 0.00
Net assets per share attributable to
shareholders of the listed
company(RMB/Share)
1.66 1.76 -5.68
This report
period (Jan. to
June)
The same period
of last year
Increase/decrease in this
report period year-on-year
(%)
Total operating income 98,031,142.11 91,579,440.16 7.04
Operating profit -19,960,777.66 124,138.39 -16,179.46
Total profit -17,168,300.74 1,040,315.51 -1,750.30
Net profit attributable to shareholders of
the listed company
-18,263,527.21 -2,294,928.82 -695.82
Net profit attributable to shareholders of
the listed company after deducting
non-recurring gains and losses
-20,565,188.38 -3,211,105.94 -540.44
Basic earnings per share (RMB/Share) -0.1004 -0.0126 -696.83
Diluted earnings per share (RMB/Share) -0.1004 -0.0126 -696.83
Return on equity (%) -6.06 -0.69 -5.37
Net cash flow arising from operating
activities
-6,132,118.35 6,133,783.89 -199.97
Net cash flow per share arising from
operating activities (RMB/Share)
-0.0337 0.0337 -200.00SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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2.2.2 Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB
Items of non-recurring gains and losses Amount
Gains and losses from the disposal of non-current asset 1,093,588.75
Governmental subsidy calculated into current gains and losses, while clos
ely related with the normal business of the Company, excluding the fixe
d-amount or fixed-proportion governmental subsidy according to the unifi
ed national standard
984,736.75
Gains and losses from contingency that related to no normal operation b
usiness of the Company
1,216,901.37
Other non-operating income and expenditure beside for the aforementione
d items
-4,817.00
other gains and losses items that meets the definition of non-recurring ga
ins and losses
4,650.98
Influenced amount of minority shareholders’ equity -331,503.85
Impact on income tax -661,895.83
Total 2,301,661.17
2.2.3 Differences between CAS and IAS:
√Applicable □Inapplicable
Unit: RMB
Net profit attributable to
shareholders of listed company
Owners’ equity attributable to
shareholders of listed company
Amount in the
report period
Amount in last
period
Amount in
period-end
Amount in
period-begin
IAS -18,263,527.21 -2,294,928.82 303,758,776.63 322,503,893.62
CAS -18,263,527.21 -2,294,928.82 301,351,137.95 320,096,254.94
Sub-items and total adjusted based on IAS:
1. Adjustment on amortization of
differences of equity investment:
0.00 0.00 1,016,958.04 1,016,958.04
2. Adjustment on cost of transferring
Shenzhen Pepsi’s equity
0.00 0.00 -254,239.51 -254,239.51
3. Adjustment on other account
payable
0.00 0.00 1,067,000.00 1,067,000.00
4. Capitalization of interest of land
use right:
0.00 0.00 577,920.15 577,920.15
Total amount of differences between
CAS and IAS
0.00 0.00 2,407,638.68 2,407,638.68
Explanations on differences between
CAS and IAS
In the first half of year 2010, the net profit attributable to owners of the
parent company calculated based on CAS and on IAS shows no differences
between them.
At the end of period, difference between the shareholders’ equity
attributable to parent company calculated based on CAS and on IAS were
showed in the above sub-items.SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
4
§3. Changes in Share Capital and Particulars about Shareholders
3.1 Statement of change in shares
√Applicable □Inapplicable
Unit: Share
Before the change Increase/Decrease of this time (+, -) After the change
Amount Proporti
on
New
shares
issued
Bo
nus
sha
res
Capita
lizatio
n of
public
reserv
e
Others Subtotal Amount Proporti
on
I. Restricted
shares
82,465,882 45.33% -67,912,035 -67,912,035 14,553,847 8.00%
1. State-owned
shares
2. State-owned
legal person’s
shares
37,818,689 20.79% -31,034,960 -31,034,960 6,783,729 3.73%
3. Other domestic
shares 44,647,193 24.54% -36,877,075 -36,877,075 7,770,118 4.27%
Including:
Domestic
non-state-owned
legal person’s
shares
44,647,193 24.54% -36,877,075 -36,877,075 7,770,118 4.27%
Domestic natural
person’s shares
4. Foreign shares
Including: Foreign
legal person’s
shares
Foreign natural
person’s shares
5. Senior
executives’ shares
II. Unrestricted
shares 99,457,206 54.67% 67,912,035 67,912,035 167,369,241 92.00%
1. RMB Ordinary
shares 73,321,206 40.30% 67,912,035 67,912,035 141,233,241 77.63%
2. Domestically
listed foreign
shares
26,136,000 14.37% 26,136,000 14.37%
3. Overseas listed
foreign shares
4. Others
III. Total shares 181,923,088 100.00% 181,923,088 100.00%SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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3.2 Particulars about shares held by the top ten shareholders and the top ten shareholders
with unrestricted conditions
Unit: Share
Total shareholders 21,235
Particulars about shares held by the top ten shareholders
Names of shareholders Nature of
shareholder
Proportion of
share-holding
Amount of
share held
Amount of
restricted shares
held
Shares pledged
or frozen
SHENZHEN
AGRICULTURAL
RODUCTS CO., LTD.
Other 26.33% 47,895,097 7,770,118 0
SHENZHEN INVESTMENT
HOLDING CO., LTD.
State-owned
shareholder 22.07% 40,143,586 6,783,729 0
Construction Bank of
China—China International
Growth Pioneer Stock
Securities Investment Fund
Other 2.01% 3,651,396 0 0
GUOTAI JUNAN SECURIES
（HONG KONG） LIMITED Other 1.20% 2,185,465 0 0
HANG SENG CONSUMER
SECTOR FLEXIPOWER
FUND
Other 0.60% 1,090,111 0 0
Du Xiao’er Other 0.51% 936,291 0 0
Ye Jinguo Other 0.49% 885,489 0 0
Chen Xi Other 0.43% 785,900 0 0
Shen Jianping Other 0.28% 516,078 0 0
Zhang Jian Other 0.28% 508,400 0 0
Particulars about the shares held by the top ten unrestricted shareholders
Full Name of shareholder Amount of unrestricted
shares held Type of shares
SHENZHEN AGRICULTURAL RODUCTS
CO., LTD. 40,124,979 RMB ordinary share
SHENZHEN INVESTMENT HOLDING CO.,
LTD. 33,359,857 RMB ordinary share
Construction Bank of China—China
International Growth Pioneer Stock
Securities Investment Fund
3,651,396 RMB ordinary share
GUOTAI JUNAN SECURIES (HONG KONG)
LIMITED
2,185,465 Domestically listed foreign share
HANG SENG CONSUMER SECTOR FLEXIPOWER
FUND
1,090,111 Domestically listed foreign share
Du Xiao’er 936,291 RMB ordinary share
Ye Jinguo 885,489 RMB ordinary share
Chen Xi 785,900 Domestically listed foreign share
Shen Jianping 516,078 RMB ordinary share
Zhang Jian 508,400 RMB ordinary share
Explanation on
associated relationship
or accordant action
among the top ten
shareholders of
circulation share
STATE-OWNED ASSETS SUPERVISION & ADMINISTRATION COMMISSION
OF SHENZHEN MUNICIPALITY GOVERNMENT directly held 21.52% equities of
Agricultural Products and indirectly held 5.22% equities of Agricultural Products, and
directly held 100% equities of Shenzhen Investment Holdings; except that, it is
unknown whether there exists associated relationship or belongs to accordant actionist
regulated by Administration of the Takeover of Listed Companies among the aforesaid
listed other shareholders or not.SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
6
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/dec
rease in
income from
operations
year-on-year
Increase/dec
rease in cost
of
operations
year-on-year
Increase/decr
ease in gross
profit ratio
year-on-year
Manufacture of
condiments 810.74 533.87 34.15% -14.13% -17.13% 2.38%
Manufacture of soft
drinks 1,366.79 969.12 29.10% -33.33% -34.11% 0.83%
Manufacture of teas 7,594.80 5,999.16 21.01% 24.47% 26.69% -1.38%
Main operations classified according to products
Mitsui brand
condiments 810.74 533.87 34.15% -14.13% -17.13% 2.38%
Soft packing drinks 1,366.79 969.12 29.10% -33.33% -34.11% 0.83%
Tea powder and tea
juice series 5,350.37 4,095.48 23.45% 20.84% 30.34% -5.65%
Tea 2,244.43 1,903.68 15.18% 34.09% 19.26% 10.55%
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
(%)
South China 3,114.54 1.37%
North China 506.05 -0.65%
East China 3,980.59 28.20%
Export 279.59 -79.95%
Other areas 1,922.35 78.59%
Total 9,803.11 7.04%
5.3 Explanation on reasons of material changes in main operations and its structure
□Applicable √InapplicableSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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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
Items
Amount at this
period
Amount at last
period
Increased/d
ecreased
over last
period
Note
Financial expenses 4,543,914.84 2,610,027.76 74.09% Caused by increased
bank loans
Investment income -12,052,068.30 3,942,379.64 -405.71%
Dramatically downside
performance of
Shenzhen Pepsi
Operation profit -19,960,777.66 124,138.39 -16,179.46%
Dramatically downside
performance of
Shenzhen Pepsi
Non-operation income 2,814,041.99 916,440.97 207.06%
Compensation income
of land requisition
from government,
government subsidy
received and disposal
of fixed assets
Total profit -17,168,300.74 1,040,315.51 -1,750.30%
Dramatically downside
performance of
Shenzhen Pepsi
Net profit -17,221,530.88 -494,950.35 -3,379.45%
Dramatically downside
performance of
Shenzhen Pepsi
Net profit attributable to
shareholders of the parent
company
-18,263,527.21 -2,294,928.82 -695.82%
Dramatically downside
performance of
Shenzhen Pepsi
5.5 Analysis on reasons of material changes in profit structure compared with the previous
year
□Applicable √Inapplicable
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 √InapplicableSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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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
§6. Significant Events
6.1 Purchases and sales of assets and assets restructure
6.1.1 Assets purchased or acquired
√Applicable □Inapplicable
The two
parties
or final
controlle
r
Assets
purchase
d or
acquired
Purchase
date
Transac
tion
price
Net profit
contributed
to the
Company
from
purchase
date to
report
period-end
(applicable
in
enterprise
merger not
under the
same
control)
Net profit
contributed
to the
Company
from
year-begin
to report
period-end
(applicable
in
enterprise
merger
under the
same
control)
Relat
ed
trans
actio
n or
not
Princ
iple
of
price
settin
g
Asse
ts
right
s
conc
erne
d
trans
ferre
d
own
ershi
p
fully
or
not
Cred
it
and
liabil
ity
conc
erne
d
shift
ed
fully
or
not
Relation
ship
with
transacti
on
party(ap
plicable
in
conditio
n of
related
transacti
on)
Shanwei
Huano
ng
Bio-tec
hnolog
y
Develo
pment
Co.,
Ltd.
20%
equity of
Guangd
ong
Shenbao
Food
Co., Ltd.
17 March
2010 120.00 27.16 __ No
Mark
et
biddi
ngs
Yes Yes __
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 □InapplicableSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
9
Unit: RMB’0000
Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
Name of the
Company
guaranteed
Relevant
disclosure
date/No. of
the
guaranteed
amount
Amount
of
guarantee
Date of
happening
(Date of
signing
agreement)
Actual
amount of
guarantee
Guarante
e type
Guarante
e term
Complet
e
impleme
ntation
or not
Guarantee
for
associated
parties
(Yes or no)
Total of external guarantee
approved in Period(A1) 0.00 Total of actual external
guarantee in Period(A2) 0.00
Total of external guarantee
approved at Period-end(A3) 0.00
Total balance of actual
external guarantee at
Period-end(A4)
0.00
Guarantee of the Company for the controlling subsidiaries
Name of the
Company
guaranteed
Relevant
disclosure
date/No. of
the
guaranteed
amount
Amount
of
guarantee
Date of
happenin
g (Date of
signing
agreemen
t)
Actual
amount of
guarantee
Guarante
e type
Guarantee
term
Compl
ete
implem
entatio
n or
not
Guarantee
for
associated
parties
(Yes or no)
Shenzhen
Shenbao
Huacheng Food
Co., Ltd.
－ 1,500.00 24
June2010 1,500.00
Joint
responsibil
ity
6 months No Yes
Shenzhen
Shenbao
Huacheng Food
Co., Ltd.
- 2,000.00 31 May
2010 2,000.00
Joint
responsibil
ity
12 months No Yes
Total of guarantee for subsidiaries
approved in the Period (B1) 3,500.00
Total of actual guarantee
for subsidiaries in the
Period (B2)
3,500.00
Total of guarantee for subsidiaries
approved at Period-end (B3) 3,500.00
Total of actual guarantee
for subsidiaries at
Period-end (B4)
3,500.00
Total of Company’s guarantee（namely total of the large two aforementioned）
Total of guarantee in the Period
(A1+B1) 3,500.00
Total of actual guarantee in
the Period
(A2+B2)
3,500.00
Total of guarantee at Period-end
(A3+B3)
3,500.00
Total of actual guarantee at
Period-end
(A4+B4)
3,500.00
The proportion of the total amount of actually
guarantee in the net assets of the Company(that is A4+
B4)
11.61%
Including:
Amount of guarantee for shareholders, actual
controller and its associated parties(C) 0.00
The debts guarantee amount provided for the
guaranteed parties whose assets-liability ratio exceed
70% directly or indirectly(D)
0.00
Proportion of total amount of guarantee in net assets of
the Company exceed 50%(E) 0.00
Total guarantee amount of the abovementioned
guarantees(C+D+E) 0.00
Explanations on possibly bearing joint and several
liquidating responsibilities for undue guarantees N/ASHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
10
6.3 Current non-operating related credits and liabilities
□Applicable √Inapplicable
6.4 Material lawsuits and arbitrations
√Applicable □Inapplicable
(I) The case concerning the joint-liability guarantee the Company provided for the RMB 7 million
loan that Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as Shen
China) had got from China Construction Bank Shenzhen Branch (hereinafter referred to as
Construction Bank) has been closed with a reconciliation. In the year 2003, the Company and
Construction Bank reached the Agreement on Interest Reduction and Cancellation, and according to
the agreement, the Company had already paid back the RMB 7 million in two times for Shen China
and fulfilled its guarantee liability (for details, please refer to Annual Report 2003 of the
Company.); through the verdict of (1999) YFJYZZi No. 26 Civil Judgment Document made by
Guangdong High People’s Court on the case concerning the joint-liability guarantee amounting to
USD 0.8 million the Company provided for issue of Letter of Credit Shen China had applied for at
Bank of China Shenzhen Branch, the Company should shoulder joint repayment liability. And
ended the first half year of 2004, the Company had repaid RMB 6,631,600 (amounting to USD 0.8
million) for Shen China and fulfilled the guarantee responsibility (for details, please refer to
Semi-Annual Report 2004 of the Company.). Latter, on Jul. 22, 2004, the guarantee payment, which
the Company had paid on its behalf, was enforced to conduct by Shenzhen Intermediate People’s
Court that the Company applied to.
To safeguard the rights and interests of the Company, the Company sued Shen China to Shenzhen
Intermediate People’s Court, and requested for a verdict to order Shen China to repay RMB 7
million, which the Company had paid on its behalf, as well as to compensate relevant loss arising
from the capital occupancy in 2004. Shenzhen Intermediate People’s Court judged and ordered
Shen China to repay the RMB 7 million the Company had paid on its behalf, and the interest arising
during the period of capital occupancy [(2004) SZFMECZi No.448]. Since Shen China had not
fulfilled its repayment duty according to the time and contents stipulated in the judgment document,
the Company applied to Shenzhen Intermediate People’s Court on Dec.20, 2004 for compulsory
enforcement. Shenzhen Intermediate People’s Court sent Shen China (2004) SZFZZi No.1382 Civil
Verdict and Mandamus, as well as (2005) SZFZZi No.208 Civil Verdict and Mandamus on Jan.14,
2005, and ruled that the property of Shen China (RMB 14,131,575.92 as the limit) should be sealed
up and frozen, and that Shen China should fulfill the duties stipulated in effective legal papers orSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
11
regulated by law within five days from the day the Mandamus arrived. Should Shen China
defaulted beyond the time limit, Shenzhen Intermediate People’s Court would make compulsory
enforcement according to law (for details, please refer to notifications of the Company published on
Securities Times, Hong Kong Ta Kung Pao and Juchao Website dated Jul.30, 2004, Nov.20, 2004,
Dec.16, 2004, Dec.29, 2004 and Jan.18, 2005.). Later, stipulated by the Higher People’s Court of
Guangdong, the aforesaid two lawsuits were conducted by Guangzhou Railway Transportation
Court, and the conductions were suspended in the report period because of discovering no property
clues. As soon as circumstances of execution suspension ended, the Company may apply to
Guangzhou Railway Transportation Court for resumption of execution. The Company would
exercise relevant rights through legitimate means.
(II)Lawsuits between the Company and Guangdong Sunrise Holdings Co., Ltd.
1. In Dec. 2002, the case concerning the joint-liability guarantee the Company provided for
the HKD 3 million loans that Guangdong Sunrise Holdings Co., Ltd. (the former Shenzhen Lionda
Holdings Co., Ltd. hereinafter referred to as Sunrise Company for short) had obtained from
Industrial and Commercial Bank of China Shenzhen Branch had been closed through mediation. On
Jan. 13, 2003, the Company repaid, on behalf of Sunrise Company, the principal of HKD 3 million
as well as the interest amounting to HKD 0.1 million, while the rest interest was exempted.
2. The case concerning the joint-liability guarantee the Company provided for the HKD 6 million
loan Sunrise Company had obtained from Shenzhen Development Bank Nantou Subbranch
(hereinafter referred to as Shenfazhan) had been closed with reconciliation. Ended the year 2003,
the Company had repaid a sum of principal HKD 2 million and the interest arising on behalf of
Sunrise Company. The remaining principal of HKD 4 million was transferred to loan, and the
Company would continue to provide guarantee (For details, please refer to notifications of the
Company published in Securities Times, Hong Kong Ta Kung Pao and Juchao Website dated May
13, 2003.). In year 2004, after this loan expired, Sunrise Company did not perform the repayment.
In year 2006, the Company had repaid another HKD 2.5 million (equaling to RMB 2.55 million) of
the principal on behalf of Sunrise Company. In the report period, the Company had repaid HKD
1,453,186.52 of the principal as well as HKD 620,734.25 of the interest (equaling to RMB
2,055,920.22) on behalf of Sunrise Company. The Company had fulfilled the guarantee liability.
3. The case concerning the joint-liability guarantee the Company provided for the HKD 32 millionSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
12
loans which Sunrise Company had obtained from Bank of China Shenzhen branch had been
reconciled (For details, please refer to notifications of the Company published on Securities Times,
Hong Kong Wen Wei Po and Juchao Website dated Jul. 29, 2006 and Dec. 13, 2006.), and on
Dec.11, 2006, the Company signed the Reconciliation Agreement on GLENMORE INVESTMENT
LIMITED Releasing Shenzhen Shenbao Industrial Co., Ltd from the Debt Guarantee Liabilities for
Guangdong Sunrise Holdings Co., Ltd. with the creditor Glenmore Investment Limited; in 2006,
the Company had paid RMB 29 million according to the aforesaid reconciliation agreement.
Shenzhen Intermediate People's Court withdrew the lawsuit against the Company，and the
Company had submitted a sue to Shenzhen Intermediate People's Court, to apply for recourse to
Sunrise Company, and requested the Court to sentence the Sunrise Company to pay back the
disbursement by the Company of RMB 29 million and relevant interests. The Court had officially
filed the case with case number 2007 SZFMECZi No.123 and finished the trial in the first instance.
On Aug. 7, 2007, the Company received the civil judgment from Shenzhen Intermediate People's
Court, in which it sentenced Sunrise Company to pay back the disbursement of RMB 29 million
and its interest within ten days from the effect term of the sentence (from Dec. 31, 2006, calculate
based on bank loan rate of the same period 6.12% till paying off). If Sunrise Company did not pay
back the debt in the stipulated time limit willingly, based on the regulations of No. 232 section of
the CIVIL PROCEDURE LAW OF THE PEOPLE'S REPUBLIC OF CHINA, Sunrise Company
should double pay the interest of the delay days. The lawsuit fee RMB 186,800 was paid by Sunrise
Company. If not agree with the sentence, Sunrise Company could appeal to the Guangdong High
People’s Court within 15 days since receiving the sentence. If Sunrise Company did not appeal
within the statutory days, this sentence be legally effective (for details, please refer to notifications
of the Company published on Securities times, Hong Kong Wen Wei Po and website of
www.cninfo.com.cn respectively on Feb. 6, 2007, Apr. 21, 2007, Aug. 8, 2007). After the legal
validity, Sunrise Company did not fulfill its repayment duty according to the time and contents
stipulated in the judgment document, the Company applied to Shenzhen Intermediate People’s
Court for compulsory enforcement. Shenzhen Intermediate People’s Court transacted the case, and
issued Notice of Case Acceptance [case number was (2008) SZFZZi No. 127]. (For details, please
refer to notifications of the Company published on Securities Times, Hong Kong Wen Wei Po and
Juchao Website dated Jan. 15, 2008.) In the report period, the Company received the Civil Verdict
Document issued by Shenzhen Intermediate People's Court [case number was (2008) SZFZZi No.SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
13
127-3], which judged the Civil Verdict Document (2007) SZFMECZi No. 123 being stopped
implementing. After ceased execution disappeared, the Company could apply to Shenzhen
Intermediate People's Court for resuming compulsory enforcement. (For details, please refer to
notifications of the Company published on the Securities Times, China Securities Journal, Hong
Kong Wen Wei Po and website of Juchao Website dated Aug. 1, 2008).
4. The case concerning the joint-liability guarantee the Company provided for the RMB 8 million
loans which Sunrise Company had obtained from Guangdong Development Bank Co., Ltd.
Shenzhen Nanyuan Subbranch (formerly Guangdong Development Bank Co., Ltd. Shenzhen
Branch Nanyuan Subbranch) had been closed with reconciliation. Ended the year 2005, the
Company had repaid a sum of interest amounting to RMB 2,369,145.58 on behalf of Sunrise
Company, while the remaining principal and interest amounting to RMB 8.58 million would
continue to be provided as a loan to Guangdong Sunrise Holdings Co., Ltd., and the Company
would continue to provide join-liability guarantee for it. The guarantee term was from Feb. 6, 2005
to Aug. 6, 2005. Sunrise Company had not repaid this loan by the expiration day of the loan. On
Oct. 31, 2006, Guangdong Development Bank transferred the aforesaid liability in Loan Extension
Contract to Guangdong Guangdong Finance Investment Holdings Co., Ltd. (hereinafter refer to as
Guangdong Finance). After that, Guangdong Finance required the Company to take joint guarantee
liability for several times. On Mar.20, 2009, Guangdong Finance entrusted Guangdong Zhihexing
Law Firm to sent a letter that: the debtee and our lawyer had held relevant assets clue under the
name of Shenbao, after Guangdong Finance put forward application of attachment, the court will
seal up and freeze the assets (including but not only the bank account, land of house and factories,
and equity), which was enough to cover the principal and interests, and this case will be executed.
The guarantee issue which caused this lawsuit was a part of the guarantee left by history which the
Company and Sunrise Company were the controlling subsidiaries of Shenzhen Investment
Management Co., Ltd. before the year of 1999. On Mar. 27, 2009, the Company and Guangdong
Finance signed Debt Repayment Agreement, which decided to resolve the guarantee issue
peacefully, that was the Company paid cash totally RMB 8,580,000 to Guangdong Finance to
implement the joint guarantee liability the Company should take. After the Company implemented
the obligation as the aforesaid method, Guangdong Finance agreed to exempt the left joint
guarantee liability (that was exempting all the interests of the loan), and would never exert any rightSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
14
of the liability to the Company in any way. Guangdong Finance should deal with the pledged
procedure of releasing 91.71% equities of Shenzhen Shenbao Sanjing Food & Drink Development
Co., Ltd. owned by the Company within 30 working days after the account all arrived. The
Company would pursue Sunrise Company for compensation in legal way. The Company paid the
account to Guangdong Finance on Mar. 30, 2009, and the releasing pledged procedure on the
91.71% equities of Shenzhen Shenbao Sanjing Food & Drink Development Co., Ltd was finished
on May 20, 2009. (Details could be found in notice in Securities Times, China Securities Journal,
Hong Kong Wen Wei Po and Juchao Website dated Mar. 31, 2009.)
The Sunrise Company has been in the procedure of bankruptcy restructure on 6 May 2010, the
Company would pursue Sunrise Company for credit compensation in legitimate means.
6.5 Other significant events and analysis on their influences and solutions
□Applicable √Inapplicable
6.5.1 Particulars about securities investment
√Applicable □Inapplicable
Unit: RMB
No. Securities
kinds
Stock
code
Short form
of the
stock
Initial
investme
nt
amount
(RMB)
Amount
held in
period-en
d
(Share)
Book
value at
period-end
Total
investmen
t
proportio
n of
securities
in
period-en
d
Gains and
losses in
report
period
1 Stock 400005 Haiguoshi 272,288.09 150,000 349,500.00 100.00% 139,500.00
Other stock investment held at the end of
report period 0.00 - 0.00 0.00% 0.00
Gain/loss of the sold securities investment in
the report period - - - - 0.00
Total 272,288.09 - 349,500.00 100% 139,500.00
6.5.2 Equity of other listed companies held
□Applicable √Inapplicable
6.5.3 Occupation and its progress of paying off on non-operational funds by largest
shareholder and its affiliated enterprises
□Applicable √InapplicableSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
15
6.5.4 Implementation of commitments made by the Company, shareholders and actual
controller
√Applicable □Inapplicable
Commitments Promisee Content of commitments Impleme
ntation
Commitments for
Share Merger Reform
SHENZHEN
AGRICULT
URAL
RODUCTS
CO., LTD.
and
SHENZHEN
INVESTME
NT
HOLDING
CO., LTD.
I. Commitments made by the original
non-tradable shareholders in the process of
Share Merger Reform: (I) Shenzhen
Agricultural Products Co., Ltd. and Shenzhen
Investment Holdings Co., Ltd. will obey the
laws, statutes and regulations, and perform the
statutory commitment obligations in the
process of Share Merger Reform; (II) Carrying
out an effective and long-term encouragement
to the management level, after the completion
of share merger reform, Shenzhen Agricultural
Products Co., Ltd. and Shenzhen Investment
Holdings Co., Ltd., the original non-tradable
shareholders of the Company, will sell their
possessed shares in 3 year to the management
team of the Company according to their share
holding proportion after the share merger
reform, which took up 6%-8% of the
Company’s total capital shares after the
implementation of pricing.
The aforesaid encouragement specific
measures and rules for implementation for the
management level was studied and formulated
by listed company according to The Measures
Governing Equity Incentive Plans of Listed
Companies of CSRC and national relevant
regulations, and were reported to the
State-owned Assets Supervision and
Administration Commission of Shenzhen
Municipality Government for examination and
approval and then implementation. The
circulation condition of this part of shares will
be implemented following relevant provisions.
Abided the
commitme
nts
Commitments for restricted
shares
—— —— ——
Commitments in report of
acquisition or equity change
—— —— ——
Commitment for substantive
asset restructuring
—— —— ——
Issuance commitment —— —— ——
Other
commitments(additional
commitments included)
—— —— ——
6.5.5 Profit distribution of Board of Directors this time or preplan of capital reserve
capitalizing
□Applicable √InapplicableSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
16
6.5.6 Detail items of other consolidated income
□Applicable √Inapplicable
6.6 Registration form for receiving research, communication and interview in the report
period.
Reception
date Reception place Reception way Object
received
Content discussed and
information provided
19 May2010
Conference room
of the Company
Field investigati
on
Hongyuan Secu
rities and Great
wall Securities
Discussion the operational stat
us and strategy plan and no u
n-disclosed significant informat
ion have been released to the
reception.
§7. Financial Report
7.1 Auditing opinion
Financial Report √Un-audited □Audited
7.2 Financial statement
7.2.1 Balance Sheet
Prepared by Shenzhen Shenbao Industrial Co., Ltd. June 30, 2010 Unit: RMB
Items Amount at period-end Amount at year-begin Merger Parent Company Merger Parent Company
Current assets:
Monetary funds 77,336,722.08 56,726,511.57 110,613,421.70 96,004,694.03
Settlement provisions
Capital lent
Transaction finance asset 349,500.00 210,000.00
Notes receivable
Accounts receivable 33,794,211.66 77,701.00 33,079,090.43 89,648.76
Accounts paid in advance 5,683,060.82 4,508,169.03
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
Other receivables 22,009,988.63 249,880,838.87 19,616,517.71 234,119,277.48
Purchase restituted finance asset
Inventories 59,029,714.88 1,322,715.44 43,432,172.68 1,222,178.23
Non-current asset due within
one year
Other current assets
Total current assets 198,203,198.07 308,007,766.88 211,459,371.55 331,435,798.50
Non-current assets:
Granted loans and advances
Finance asset available for sales
Held-to-maturity investmentSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
17
Long-term account receivable
Long-term equity investment 100,356,888.65 259,201,531.01 112,906,889.90 273,751,532.26
Investment property 25,917,222.11 26,332,664.33
Fixed assets 114,642,265.39 5,654,552.14 118,637,867.25 5,798,390.87
Construction in progress 36,451,675.18 2,795,885.72 34,463,673.23 3,956,945.72
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 195,402,012.92 76,384,919.35 142,045,692.99 21,277,452.98
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned 1,470,976.42 1,202,995.81 371,683.76 70,200.03
Deferred income tax asset 3,458,494.68 2,093,388.05 3,471,579.32 2,093,388.05
Other non-current asset
Total non-current asset 451,782,313.24 373,250,494.19 411,897,386.45 333,280,574.24
Total assets 649,985,511.31 681,258,261.07 623,356,758.00 664,716,372.74
Current liabilities:
Short-term loans 91,000,000.00 49,000,000.00 149,000,000.00 112,000,000.00
Loan from central bank
Absorbing deposit and interbank
deposit
Capital borrowed
Transaction financial liabilities
Notes payable
Accounts payable 27,233,840.35 199,274.02 16,236,290.90 26,000.00
Accounts received in advance 4,331,279.50 2,535,609.18
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 858,869.51 170,896.81 2,311,903.44 1,374,704.52
Taxes payable 922,851.25 -8,332.68 2,039,661.16 -24,997.04
Interest payable
Dividend payable 2,909,182.74 2,909,182.74 2,909,182.74 2,909,182.74
Other accounts payable 71,624,142.69 114,528,733.20 33,983,676.35 66,960,261.16
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 198,880,166.04 166,799,754.09 209,016,323.77 183,245,151.38
Non-current liabilities:
Long-term loans 103,500,000.00 103,500,000.00 49,000,000.00 49,000,000.00
Bonds payableSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
18
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities
Other non-current liabilities 660,403.25
Total non-current liabilities 104,160,403.25 103,500,000.00 49,000,000.00 49,000,000.00
Total liabilities 303,040,569.29 270,299,754.09 258,016,323.77 232,245,151.38
Owner’s equity (or shareholders’
equity):
Paid-in capital (or share capital) 181,923,088.00 181,923,088.00 181,923,088.00 181,923,088.00
Capital public reserve 80,083,319.44 80,305,894.70 80,564,909.22 80,305,894.70
Less: Inventory shares
Reasonable reserve
Surplus public reserve 32,464,033.34 32,464,033.34 32,464,033.34 32,464,033.34
Provision of general risk
Retained profit 6,880,697.17 116,265,490.94 25,144,224.38 137,778,205.32
Balance difference of foreign
currency translation
Total owner’s equity attributable to
parent company 301,351,137.95 410,958,506.98 320,096,254.94 432,471,221.36
Minority interests 45,593,804.07 45,244,179.29
Total owner’s equity 346,944,942.02 410,958,506.98 365,340,434.23 432,471,221.36
Total liabilities and owner’s equity 649,985,511.31 681,258,261.07 623,356,758.00 664,716,372.74
7.2.2 Profit Statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd. January-June, 2010 Unit: RMB
Amount in this period Amount in last period
Items
Merger
Parent
Company Merger
Parent
Company
I. Total operating income 98,031,142.11 1,347,753.85 91,579,440.16 1,520,437.31
Including: Operating income 98,031,142.11 1,347,753.85 91,579,440.16 1,520,437.31
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 106,079,351.47 10,062,371.67 95,601,681.41 9,876,506.58
Including: Operating cost 75,106,437.05 79,866.50 68,544,547.89 69,057.25
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 431,774.87 62,610.08 535,942.77 72,302.34
Sales expenses 6,310,429.41 180,580.50 5,151,916.52 175,176.09
Administration expenses 19,691,446.28 6,860,925.37 18,552,219.43 9,075,877.73
Financial expenses 4,543,914.84 2,878,389.22 2,610,027.76 273,043.40
Losses of devaluation of asset -4,650.98 207,027.04 211,049.77SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
19
Add: Changing income of fair value(Loss
is listed with “-”) 139,500.00 204,000.00
Investment income (Loss is listed with “-”) -12,052,068.30 -14,014,997.9
3 3,942,379.64 3,764,083.64
Including: Investment income on affiliated
company and joint venture -12,550,001.25 -12,550,001.2
5 3,942,379.64 3,764,083.64
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) -19,960,777.66 -22,729,615.7
5 124,138.39 -4,591,985.63
Add: Non-operating income 2,814,041.99 1,216,901.37 916,440.97 619,090.97
Less: Non-operating expense 21,565.07 263.85
Including: Disposal loss of non-current
asset 15,050.02
IV. Total Profit (Loss is listed with “-”) -17,168,300.74 -21,512,714.3
8 1,040,315.51 -3,972,894.66
Less: Income tax expense 53,230.14 1,535,265.86 1,482,300.00
V. Net profit (Net loss is listed with “-”) -17,221,530.88 -21,512,714.3
8 -494,950.35 -5,455,194.66
Net profit attributable to owner’s of parent
company -18,263,527.21 -21,512,714.3
8 -2,294,928.82 -5,455,194.66
Minority shareholders’ gains and losses 1,041,996.33 1,799,978.47
VI. Earnings per share
i. Basic earnings per share -0.1004 -0.12 -0.0126 -0.0300
ii. Diluted earnings per share -0.1004 -0.12 -0.0126 -0.0300
VII. Other consolidated income
VIII. Total consolidated income -17,221,530.880 -21,512,714.3
8 -494,950.350 -5,455,194.66
Total consolidated income attributable to owners of
parent company -18,263,527.210 -21,512,714.3
8 -2,294,928.820 -5,455,194.66
Total consolidated income attributable to minority
shareholders 1,041,996.33 0.00 1,799,978.47 0.00
7.2.3 Cash Flow Statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd. January-June, 2010 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 114,460,696.41 161,000.50 104,799,652.71 25,760.00
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 commissionSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
20
Net increase of capital borrowed
Net increase of returned business
capital
Write-back of tax received 188,371.62 1,716,403.23
Other cash received concerning
operating activities 9,876,986.68 26,947,390.32 6,270,493.90 1,429,473.82
Subtotal of cash inflow arising from
operating activities 124,526,054.71 27,108,390.82 112,786,549.84 1,455,233.82
Cash paid for purchasing
commodities and receiving labor service 83,962,650.35 156,022.10 68,964,256.90
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 18,724,555.47 9,074,261.51 12,267,466.19 1,467,383.51
Taxes paid 6,157,716.15 477,632.30 7,831,654.36 143,372.25
Other cash paid concerning
operating activities 21,813,251.09 44,966,320.96 17,589,388.50 20,941,509.13
Subtotal of cash outflow arising from
operating activities 130,658,173.06 54,674,236.87 106,652,765.95 22,552,264.89
Net cash flows arising from
operating activities -6,132,118.35 -27,565,846.05 6,133,783.89 -21,097,031.07
II. Cash flows arising from investing a
ctivities:
Cash received from recovering
investment
Cash received from investment
income 31,475,586.65
Net cash received from disposal of
fixed, intangible and other long-term
assets
2,718,835.00 1,680,835.00 22,000.00
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities 20,000,000.00 20,000,000.00
Subtotal of cash inflow from
investing activities 22,718,835.00 21,680,835.00 31,497,586.65
Cash paid for purchasing fixed,
intangible and other long-term assets 75,269,397.26 55,930,652.51 12,260,227.65 1,462,629.19
Cash paid for investment 1,200,000.00 6,880,000.00
Net increase of mortgaged loans 20,000,000.00 20,000,000.00
Net cash received from subsidiaries
and other units
Other cash paid concerning investing
activities 20,000,000.00
Subtotal of cash outflow from
investing activities 96,469,397.26 75,930,652.51 39,140,227.65 1,462,629.19
Net cash flows arising from
investing activities -73,750,562.26 -54,249,817.51 -7,642,641.00 -1,462,629.19SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
21
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 134,000,000.00 92,000,000.00 162,000,000.00 50,000,000.00
Cash received from issuing bonds
Other cash received concerning
financing activities 55,756,182.00 55,756,182.00
Subtotal of cash inflow from
financing activities 189,756,182.00 147,756,182.00 162,000,000.00 50,000,000.00
Cash paid for settling debts 137,500,000.00 100,500,000.00 89,080,000.00 9,580,000.00
Cash paid for dividend and profit
distributing or interest paying 5,650,201.01 4,718,700.90 3,279,046.70 627,157.50
Including: Dividend and profit of
minority shareholder paid by subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from
financing activities 143,150,201.01 105,218,700.90 92,359,046.70 10,207,157.50
Net cash flows arising from financing
activities 46,605,980.99 42,537,481.10 69,640,953.30 39,792,842.50
IV. Influence on cash and cash
equivalents due to fluctuation in exchange
rate
V. Net increase of cash and cash
equivalents -33,276,699.62 -39,278,182.46 68,132,096.19 17,233,182.24
Add: Balance of cash and cash
equivalents at the period -begin 90,613,421.70 76,004,694.03 22,501,768.29 10,374,648.49
VI. Balance of cash and cash equivalents
at the period -end 57,336,722.08 36,726,511.57 90,633,864.48 27,607,830.73SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
22
7.2.4 Consolidated Statement on Changes of Owners’ Equity
Prepared by Shenzhen Shenbao Industrial Co., Ltd. Semi-Annual of 2010 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
reserves
Less:
Treasury
Stock
Reaso
nable
reserv
e
Surplus
reserves
Gener
al risk
provis
ion
Retained
profit
Others
Minority’s
equity
Total owners’
equity
Paid-up capital
(Share capital)
Capital
reserves
Less:
Treasu
ry
Stock
Reasona
ble
reserve
Surplus
reserves
Gener
al risk
provis
ion
Retained
profit
Others
Minority’s
equity
Total owners’
equity
I. Balance at
the end of last
year
181,923,088.00 80,564,909.22 32,464,033.34 25,144,224.38 45,244,179.29 365,340,434.23 181,923,088.00 80,305,894.70 32,464,033.34 38,049,294.30 50,379,076.12 383,121,386.46
Add: Changes
of accounting
policy
Error
correction of
the last period
Others
II. Balance at
the beginning
of this year
181,923,088.00 80,564,909.22 32,464,033.34 25,144,224.38 45,244,179.29 365,340,434.23 181,923,088.00 80,305,894.70 32,464,033.34 38,049,294.30 50,379,076.12 383,121,386.46
III. Increase/
Decrease in
this year
(Decrease is
listed with'"-")
-481,589.78 -18,263,527.21 349,624.78 -18,395,492.21 259,014.52 -12,905,069.92 -5,134,896.83 -17,780,952.23
(I) Net profit -18,263,527.21 1,041,996.33 -17,221,530.88 -12,905,069.92 3,039,881.62 -9,865,188.30
(II) Other
consolidated
income
Subtotal of
(I)and (II) -18,263,527.21 1,041,996.33 -17,221,530.88 -12,905,069.92 3,039,881.62 -9,865,188.30
(III) Owners'
devoted and
decreased
capital
-481,589.78 -692,371.55 -1,173,961.33 259,014.52 -8,174,778.45 -7,915,763.93
1. Owners'
devoted
capital
2. Amount
calculated into
owners' equitySHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
23
paid in shares
3. Others -481,589.78 -692,371.55 -1,173,961.33 259,014.52 -8,174,778.45 -7,915,763.93
(IV) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners
(shareholders)
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
(VI)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in
the report
period
IV. Balance at
the end of
this term
181,923,088.00 80,083,319.44 32,464,033.34 6,880,697.17 45,593,804.07 346,944,942.02 181,923,088.00 80,564,909.22 32,464,033.34 25,144,224.38 45,244,179.29 365,340,434.23SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
24
7.2.5 Statement on Changes of Owners' Equity of Parent Company
Prepared by Shenzhen Shenbao Industrial Co., Ltd. Semi-Annual of 2010 Unit: RMB
Amount in this report period Amount in last year
Items
Paid-up
capital
(Share
capital)
Capital
reserves
Less:
Treasur
y Stock
Reason
able
reserve
Surplus
reserves
Provisio
n of
general
risk
Retained
profit
Total owners’
equity
Paid-up capital
(Share capital)
Capital
reserves
Less:
Treasur
y Stock
Reasona
ble
reserve
Surplus
reserves
Provision
of general
risk
Retained
profit
Total
owners’
equity
I. Balance at the end of
last year
181,923,088.00 80,305,894.70 32,464,033.34 137,778,205.32 432,471,221.36 181,923,088.00 80,305,894.70 32,464,033.34 152,569,666.17 447,262,682.21
Add: Changes of
accounting policy
Error correction of the
last period
Others
II. Balance at the
beginning of this year
181,923,088.00 80,305,894.70 32,464,033.34 137,778,205.32 432,471,221.36 181,923,088.00 80,305,894.70 32,464,033.34 152,569,666.17 447,262,682.21
III. Increase/ Decrease in
this year (Decrease is
listed with'"-")
-21,512,714.38 -21,512,714.38 -14,791,460.85 -14,791,460.85
(I) Net profit -21,512,714.38 -21,512,714.38 -14,791,460.85 -14,791,460.85
(II)Other consolidated
income
Subtotal of (I)and (II) -21,512,714.38 -21,512,714.38 -14,791,460.85 -14,791,460.85
(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. Providing of surplus
reserves
2. Providing of common
risk provisionsSHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
25
3. Dividend to
shareholders
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 reserves
4. Others
(VI) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
IV. Balance at the end of
this term
181,923,088.00 80,305,894.70 32,464,033.34 116,265,490.94 410,958,506.98 181,923,088.00 80,305,894.70 32,464,033.34 137,778,205.32 432,471,221.36SHENZHEN SHENBAO INDUSTRIAL CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
26
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
The wholly-owned subsidiary of the Company--- Shenzhen Shenbao Biological Co., Ltd. has
published the liquidation announcement in Shenzhen Special Zone Daily dated 9 December 2009.
In the report period, all cancellation procedures have been completed. And at the end of this period
not listed in the consolidated statement.
7.3.3 If Non-standard Unqualified Opinion is supplied, list the related notes to the matters involved.
□Applicable √Inapplicable
Chairman of the Board: Zheng Yuxi
Shenzhen Shenbao Industrial Co., Ltd.
August 13, 2010
