Stock Code: 000056、200056 Short Form of the Stock: SZIEC 、SZIEC B Announcement No.: 2010-50
Shenzhen International Enterprise Co., Ltd.
The Third Quarterly Report 2010
§1 Important Notice
1.1 The Board of Directors and directors of Shenzhen International Enterprise Co.,
Ltd. (hereinafter referred to as the Company) guarantee that there are no any
omissions, fictitious or serious misleading statements carried in the report and will
take all responsibilities, individual and/or joint for the authenticity, accuracy and
completeness of the whole contents.
1.2 Other than the following director, other directors attended the Board meeting in
person, at which the third quarterly report 2010 is reviewed.
Name Office title Reason Name of assignee
Sun Changxing Independent Director On official business trip Xie Ruxuan
1.3 The Financial Report in this quarterly report has not been audited by a CPA firm.
1.4 Zheng Kanghao, Person-in-charge of the Company, Chen Xiaohai,
Person-in-charge of the accounting work, and Xu Xiaoyun, Person-in-charge of the
accounting organ hereby confirm the factuality and completeness of the Financial
Report in this quarterly report.
§2 Company Profile
2.1 Main accounting data and financial indicators
Unit: (RMB) Yuan
As at 30 Sep. 2010 As at 31 Dec. 2009 Increase/decrease (%)
Total assets (RMB) 1,650,914,726.01 1,451,667,225.56 13.73%
Owners’ equity attributable to shareholders of
listed company (RMB)
152,230,545.87 225,778,093.67 -32.58%
Share capital (share) 220,901,184.00 220,901,184.00 0.00%
Net assets per share attributable to
shareholders of listed company (RMB/share)
0.69 1.02 -32.35%
Jul.-Sep. 2010
Increase/decrease
year-on-year (%)
Jan.-Sep. 2010
Increase/decrease
year-on-year (%)
Total operation income (RMB) 3,716,741.18 -3.95% 9,720,337.51 -25.83%
Net profit attributable to shareholders of listed
company (RMB)
-51,806,731.36 - -73,547,547.80 -906.98%
Net cash flows generated from operating
activities (RMB)
- - -670,424,449.31
Net cash flows per share generated from
operating activities (RMB/share)
- - -3.03 -Basic earnings per share (RMB/share) -0.2345 -0.33 -925.00%
Diluted earnings per share (RMB/share) -0.2345 -0.33 -925.00%
Weighted average return on net assets (%) -29.08% -28.24% -38.91% -42.91%
Weighted average return on net assets after
deducting extraordinary gains and losses (%)
-22.27% -21.11% -32.20% -28.76%
Items of non-recurring gains and losses Amount from year-begin to the end of this report period Notes
Gains and losses from disposal of non-current assets 2,294,779.72
Other non-operating income and expenditure -22,042,234.19
Impact on minority interest 8,819,246.26
Total -10,928,208.21 -
2.2 Total number of shareholders at period-end and shareholding of top ten
shareholders holding tradable shares
Unit: share
Total number of shareholders at the period-end 18,620
Shareholding of top ten shareholders holding tradable shares
Full name of shareholder
Number of tradable shares
held at period-end
Type of share
Multi Profit Asia Pacific Investment Ltd 30,264,192 Domestically listed foreign shares
Shenzhen Special Economic Zone Development (Group)
Co., Ltd.
21,566,857 RMB Ordinary Shares
UOB Investment (China) Limited 15,528,941 Domestically listed foreign shares
Shenzhen Maoye Emporium Ltd 13,577,548 RMB Ordinary Shares
Zhong Zhiqiang 8,215,594 Domestically listed foreign shares
Shenzhen Taitian Industrial Development Co., Ltd. 5,651,012 RMB Ordinary Shares
Chen Qiaoling 3,109,255 RMB Ordinary Shares
Fang Ruiping 2,534,800 RMB Ordinary Shares
Chen Shaolan 2,528,341 RMB Ordinary Shares
Chen Shu 2,149,327 Domestically listed foreign shares
§ 3 Significant Events
3.1 Particulars about major changes of main accounting statement items and financial
indicators, as well as reasons for the changes
√Applicable □Inapplicable
Monetary capital at the end of report period increased 1102.10% over the year-begin,
mainly because the Company received borrowings.
Short-term borrowings at the end of report period increased RMB 1,294,000,000.00
over the year-begin, mainly because the Company received borrowings.
Accounts payable at the end of report period decreased 91.42% over the year-begin,
which was mainly due to reception of payment for Fanhua and IA Mall Project.
Other payables at the end of report period decreased 23.93% over the year-begin, dueto return the borrowings.
Long-term borrowings at the end of report period decreased 86.22% over the
year-begin, which was mainly due to return the loan.
Administrative expenses from the year-begin to the end of report period increased
83.37% year-on-year, mainly because rent and wage increased, and expense stop
capitalizing.
Financial expenses from the year-begin to the end of report period increased RMB
78,423,455.32 year-on-year, which was mainly because borrowings increased, interest
for arrearage has been paid and interest for capitalization was paid.
Non-operating income from the year-begin to the end of report period decreased 82%
year-on-year, mainly because the assets activating decreased in this year.
Net cash flow from financing activities from the year-begin to the end of report period
increased RMB 872,581,619.18 year-on-year, mainly due to receival of borrowings.
3.2 Progress and influence of significant events, as well as the analysis on solutions
□Applicable √Inapplicable
3.2.1 About non-standard opinion
√Applicable □Inapplicable
In the 2009 Annual Audit Report, Reanda Certified Public Accountants Co., Ltd.
issued the Statement on Issuing Unqualified Audit Opinion with Pinpointed Matters
for 2009 Annual Financial Report to Shenzhen International Enterprise Co., Ltd.,
pointing out that the Company’s ability to pay was weak and its going-concern
capability for the future was uncertain.
In order to solve the aforesaid problems, the Company focused on pushing forward
financing in the first half of this year. In Jul. 2010, Rongfa Company obtained a
financing of RMB 1.3 billion from Bohai International Trust Co., Ltd.. (For more
details, please refer to the public notice published on Securities Times, Ta Kung Pao
(HK) and http://www.cninfo.com.cn dated 3 Jul. 2010.) Such a move greatly eased the
Company’s short-term liability pressure.
3.2.2 The Company offer capital to the controlling shareholder or other related parties
and provide external guarantees in violation of the prescribed procedures.
□Applicable √Inapplicable
3.2.3 Signing contract and execution of contract on routine operation
□Applicable √Inapplicable
3.2.4 Others
√Applicable □Inapplicable
No new significant lawsuit or arbitration occurred during the report period, and the
progress in the report period of significant lawsuits and arbitrations of previous years
was as follows:
(I) The case on house-leasing dispute between subsidiary of the Company-Shenzhen
Rongfa Investment Co., Ltd. (hereinafter called “Rongfa Investment”) and Shenzhen
Baotian Investment Co., Ltd. (hereinafter called “Baotian Investment”)
On 31 Jan. 2007, Rongfa Investment entered into the Contract on Transfer of Use
Right of Housing with Baotian Investment. Due to dispute in the execution of thecontract, Baotian Investment has not yet paid the fees for use right of housing to
Rongfa Investment by now.
Shenzhen Municipal Intermediate People’s Court of Guangdong Province made the
civil ruling paper with (2008) SZFMWZ Zi No. 2867, which has took effect on 11
Sep. 2009. (For details, please refer to the public notice with serial number 2009-39
disclosed in Securities Times, Ta Kung Pao and http://www.cninfo.com.cn on 29 Oct.
2009).
Up till now, Baotian Investment failed to pay the fees for use right of housing to
Rongfa Investment according to the clauses of the ruling. Presently, the case is being
executed.
(II)The case on Construction Contract for Construction Project between Rongfa
Investment and Shenzhen Fanhua Engineering Group Co., Ltd. (hereinafter called
“Fanhua Company”)
Rongfa Investment entered into the Construction Contract for Construction Project
with Fanhua Company on 12 Jan. 2005, in which Fanhua Company contracted to
build the IA Mall Project developed by Rongfa Investment. Rongfa Investment paid
the part of construction costs, and the rest costs failed to be paid to Fanhua Company.
In Dec. 2009, Fanhua Company brought an action against Rongfa Investment to ask
for paying unpaid construction costs, overdue interests and other expenses. In Feb.
2010, through mediation of Higher People’s Court of Guangdong Province, the both
parties negotiated a settlement, and the Higher People’s Court of Guangdong Province
issued the paper of civil mediation with (2009) YGFMYC Zi No. 7 (For more details,
please refer to public notice published on Securities Times, Hong Kong Ta Kung Pao
and www.cninfo.com.cn on 12 Feb. 2010).
Since the paper of civil mediation became effective, Rongfa Investment actively
raised money to repay the debt. Up until 26 Aug. 2010, Rongfa Investment had paid
off all the payables as agreed upon in the civil mediation and the execution of all
clauses in the civil mediation had been accomplished.
3.3 Fulfillment of commitments made by the Company, shareholders and the actual
controller
√Applicable □Inapplicable
Commitment
Commitment
maker
Contents of commitment Execution
Commitments concerning the
share merger reform
－ －
All relevant shareholders have
fulfilled their commitments
concerning the share merger reform.
Commitments made in the
Acquisition Report or the Report
on Equity Changes
Zheng Kanghao
The information disclosure obligor shall
not reduce the shares of Multi Profit Asia
Pacific Investment Ltd. held by the
obligor through the relevant acquisition
or reduce the shares of SZIEC directly
held by the obligor through the said
acquisition within the coming 60 months.
The execution of the commitment
continued.
Commitments made in significant － － －asset reorganization
Commitments made when issuing
shares
－ － －
Other commitments (including
supplementary commitments)
－ － －
3.4 Warnings of possible losses or major changes of the accumulative net profit
achieved during the period from year-begin to the end of the next report period
compared with the same period of last year, as well as explanation on reasons
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
3.5.1 Securities investment
□Applicable √Inapplicable
3.5.2 Researches, interviews and visits received in the report period
No field researches, phone calls or written inquiries from investors were received in
the report period.
3.6 Investments into derivatives
□Applicable √Inapplicable
3.6.1 Positions of derivatives investments held at period-end
□Applicable √Inapplicable
