Stock Abbr.: SZIEC Stock Code: 200056 Announcement No.: 2011-36
Shenzhen International Enterprise Co., Ltd.
The Third Quarterly Report 2011
§1 Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and
other senior management personnel of Shenzhen International Enterprise Co., Ltd.
(hereinafter referred to as the Company) hereby guarantee that this report carries no
false information, misleading statements or major omissions, and accept, individually
and collectively, the responsibility for the factuality, accuracy and completeness of the
information set forth herein.
1.2 The Financial Report in this quarterly report has not been audited by a CPA firm.
1.3 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 (Financial manager) hereby confirm the factuality and completeness
of the Financial Report in this quarterly report.
§2. Company Profile
2.1 Main accounting data and financial indexes
Unit: RMB Yuan
As at 30 Sept. 2011 As at 31 Dec. 2010 Increase/decrease (%)
Total assets (Yuan) 1,637,976,373.66 1,540,732,957.65 6.31%
Owners’ equity attributable to
26,948,200.42 54,308,600.82 -50.38%
shareholders of listed company (Yuan)
Share capital (Share) 220,901,184.00 220,901,184.00 0.00%
Net assets per share attributable to
shareholders of listed company (Yuan 0.12 0.25 -52.00%
/share)
Increase/decrease Increase/decrease
Jul.-Sept. 2011 Jan.-Sept. 2011
year-on-year (%) year-on-year (%)
Total operation income (Yuan) 5,480,243.38 47.45% 11,962,443.99 23.07%
Net profit attributable to shareholders of
-11,842,008.35 -77.41% -27,360,400.40 -62.80%
listed company (Yuan)
Net cash flows generated from operating
- - -122,140,877.10 -81.78%
activities (Yuan)
Net cash flows per share generated from
- - -0.55 -81.78%
operating activities (Yuan /share)
Basic earnings per share (Yuan /share) -0.054 -77.14% -0.12 -62.80%
Diluted earnings per share (Yuan /share) -0.054 -77.14% -0.12 -62.80%
Weighted average return on net assets (%) -24.47% 4.61% -67.34% -28.43%
Weighted average return on net assets after
deducting extraordinary gains and losses -24.86% -2.59% -67.81% -35.61%
(%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Items of non-recurring gains and losses Amount Notes (If applicable)
Gains and losses from disposal of non-current assets 46,178.94
Government subsidies measured into the current period gain and loss,
excluding those government subsidies closely related to the
Discount for loans for
Company’s business that the Company enjoyed continually at the 450,000.00
the forest business
certain standard rating and in conformity with provisions of policies of
the State
Other non-operating income and expenses besides the above items 45,138.94
Effect on income tax -135,329.47
Effect on minority interests -216,527.15
Total 189,461.26 -
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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 17,722
Shareholding of top ten shareholders holding tradable shares
Number of tradable shares held at
Full name of shareholder Type of share
period-end
MULTI PROFIT ASIA PACIFIC INVESTMENT
30,264,192 Domestically listed foreign shares
LTD.
SHENZHEN SPECIAL ECONOMIC ZONE
20,175,157 RMB ordinary shares
DEVELOPMENT (GROUP) CO., LTD.
UOB INVESTMENT (CHINA) LIMITED 15,528,941 Domestically listed foreign shares
SHENZHEN MAOYE EMPORIUM LTD. 13,577,548 RMB ordinary shares
ZHONG ZHI QIANG 8,215,594 Domestically listed foreign shares
GUOYUAN ASSET MANAGEMENT (HONG
7,517,620 Domestically listed foreign shares
KONG) LIMITED
SHENZHEN WONGTEE INVESTMENT CO.,
2,202,546 RMB ordinary shares
LTD.
CHEN SHU 2,149,327 Domestically listed foreign shares
ZENG HAI XING 2,148,715 Domestically listed foreign shares
GUOTAI JUNAN SECURITIES(HONGKONG)
1,892,877 Domestically listed foreign shares
LIMITED
§3 Significant Events
3.1 Particulars about major changes of main accounting statement items and financial
indexes, as well as reasons for the changes
√Applicable □Inapplicable
Monetary funds at the period-end decreased 47.43% over the year-begin, which was mainly
due to the payments for construction and decoration.
Accounts receivable at the period-end decreased 40.64% over the year-begin, which was
mainly because receivables were collected.
Prepayments at the period-end increased 29,190.12% over the year-begin, which was mainly
due to the decoration payment for the IA Mall project.
Short-term borrowings at the period-end decreased by RMB 1,300,000,000 over the
year-begin, which was mainly due to borrowing repayment.
Long-term borrowings at the period-end increased 4,281% over the year-begin, which was
mainly because the Company secured borrowings.
Operating cost from the year-begin to the period-end increased 31.76% over the same period
of last year, which was mainly due to the increased cost carried forward from timber selling.
Selling expense from the year-begin to the period-end decreased by RMB 978,631.60 over the
same period of last year, which was mainly because no sales were conducted in this period.
Financial expense from the year-begin to the period-end decreased 92.67% over the same
period of last year, which was mainly due to capitalization of the interest on project
borrowings.
Non-business income from the year-begin to the period-end decreased 79.73% over the same
period of last year, which was mainly due to fewer gains on fixed asset disposal in this period
as compared with the same period of last year.
Non-business expense from the year-begin to the period-end decreased 99.70% over the same
period of last year, which was mainly due to fewer default provisions for borrowings and
construction payments this year.
Cash received from sales of goods and rendering of services from the year-begin to the
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period-end increased 46.49% over the same period of last year, which was mainly due to a
greater income from timber selling in this period.
Cash received from borrowings secured from the year-begin to the period-end increased
66.67% over the same period of last year, which was mainly because the Company secured
more borrowings in this period.
Cash paid to repay loans from the year-begin to the period-end increased 382.72% over the
same period of last year, which was mainly because the Company repaid more loans in this
period.
Cash paid as dividends, profit distribution or interest from the year-begin to the period-end
increased 128.03% over the same period of last year, which was mainly because the Company
secured more borrowings and the interest increased accordingly in this period.
3.2 Progress and influence of significant events, as well as the analysis on solutions
3.2.1 Non-standard audit opinion
√Applicable □Inapplicable
In the 2010 Annual Audit Report, Reanda Certified Public Accountants Co., Ltd.
issued the Statement on Issuing Unqualified Audit Opinion with Paragraphs of
Pinpointed Matters for 2010 Annual Financial Report to Shenzhen International
Enterprise Co., Ltd. Statement given by the Board of Directors about the progress in
handling matters mentioned in the report are as the following:
Qualified matters:
(1) Internal-staff subscription of shops in the project of shopping center in central area
of Futian District: In line with resolutions made by the Shareholders’ General Meeting,
the Board of Directors and the management personnel of the Company organized a
special group to actively communicate and negotiate with subscribers, and kept
promoting settlement and disposal of that event. On one hand, the Company, in an
active manner, negotiated with subscribers for solution; on the other hand, the
Company is also seeking for and demonstrating other ways, including filing a lawsuit,
to solve that problem.
(2) Land use right of Rongfa East Road, Pingdi Town:
The Company has submitted relevant materials on prosecuting the transferee of equity
to the court, and the court has accepted the case, but has not yet opened a court for
trial .
Pinpointed matters:
The Company’s continual operation ability: the Company’s financing work, which
was finished in the first half year, has relieved the tension of cash flow and provided
capital guarantee for the construction of the project of shopping center in central area
of Futian District. With such capital support, the overall decoration and promotion of
the project has been carried out. It is expected that cash flow of the Company will be
substantially improved after the shopping center opens.
3.2.2 Whether the Company provided funds to the controlling shareholder or its
related parties or provided guarantees to external parties in violation of the prescribed
procedures
□Applicable √Inapplicable
3.2.3 Signing and execution of significant contracts concerning routine operations
□Applicable √Inapplicable
3.2.4 Others
√Applicable □Inapplicable
A. The Company’s significant lawsuits or arbitrations occurred in the reporting period
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are as follows:
a. The case on contract between Shenzhen Zhongtie Property Co., Ltd. (hereinafter
referred as “Zhongtie Property”) and Shenzhen Rongfa Investment Co., Ltd.
(hereinafter called “Rongfa Company”) disclosed in the Company’s interim report
2011
The process of the case: In Oct. 2011, the Company received the written judgment of
first instance from Shenzhen Futian District People’s Court of Guangdong Province,
sentencing the Company to provide RMB 4 million of default fine to Zhongtie
Property. The Company has sued to the court again.
b. The case on equity transfer dispute between Malaysia Foh Chong & Sons
SDN.BHD. (hereinafter referred as “Foh Chong Company”) and Shenzhen
International Enterprise Co., Ltd. disclosed in the Company’s interim report 2011
The process of the case: In Aug. 2011, the Company received the charging document
from Shenzhen Intermediate People’s Court by Foh Chong Company. Up to the
disclosure date of this report, the case has not been open for trial by Shenzhen
Intermediate People’s Court.
c. The case on guarantee obligation dispute between Shenzhen International
Enterprise Co., Ltd. and Shum Kong Industry & Trade Co., Ltd. (hereinafter referred
as Shum Kong Industry & Trade) disclosed in the Company’s interim report 2011
The process of the case: The Company has put forward the objection in the stipulated
time. Now the court has not judged whether the Company is qualified for joining in
the properties distribution of the executed.
B. Progress in construction of internal control standards during the reporting period:
In accordance with the unified arrangement, the Company actively implemented the
requirements stipulated by the Circular on Doing Well the Internal Control Pilot Work
in Listed Companies in Shenzhen (Shen-Zheng-Ju-Gong-Si-Zi (2011) No. 31). The
Company will actively promote the internal control construction, and establish,
perfect as well as effectively implement the internal control standards.
During the reporting period, the Company promulgated the Work Plan on
Implementation of Internal Control Basic Rules, which was reviewed and approved
by the Board of Directors. Besides, the Company engaged external consulting organs,
decided the internal control scope relevant to the financial report, convened the
start-up meeting and training activities, carried out process carding and risks analysis
and so on. Up to the end of Sept. 2011, in accordance with the scheme of the internal
control work, the Company had finished the carding of eight processes, identified
relevant risks and key controlling activities, made the defect analysis, and then put
forward the suggestions on rectifying and improving the defects. In the next step, the
Company will promulgate the detailed rectification and improvement program in line
with its actual situation, and submit it to the Internal Control Construction Steering
Committee for review and approval, then implement relevant rectification and
improvement work with the approval.
In accordance with the work scheme and the implementation situation of previous
internal control work, it is expected that the Company will finish the first stage
internal control carding, risk analysis and appraisal work till the middle of Nov. 2011,
and carry out rectification and improvement work of internal control as well as
relevant testing.
C. Progress on the shopping mall project in Futian Central Business District
During the reporting period, the Company further strengthened its international
business invitation team, which initiated active talks with world-famous brands.
Currently, construction and decoration is in process according to the new design. Due
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to many factors such as a construction halt during the World University Games held in
Shenzhen, a longer construction period resulted from some changes in the project
design and the business invitation progress, the opening date of the shopping mall will
be changed from the end of 2011 to the end of 2012.
3.3 Fulfillment of commitments made by the Company, shareholders and the actual
controller
Commitments made by the Company, its directors, supervisors, senior executives,
shareholders with an over 5% shareholding, actual controller and other stakeholders
during the reporting period, or such commitments carried down into the reporting
period:
√Applicable □Inapplicable
Commitment Promisor Contents of commitment Implementation
Commitments concerning the share
- - Fulfilled
reform
The obligor for information
disclosure shall not reduce the
shares of Multi Profit Asia
Pacific Investment Ltd. held
Commitments made in the Acquisition Zheng Continue to strictly
the obligor from this
Report or the Report on Equity Changes Kanghao fulfill the commitments
acquisition or reduce the shares
of SZIEC indirectly held by the
obligor from this acquisition
within the future 60 months.
Commitments made in significant asset
- - -
reorganization
Commitments made when issuing shares - - -
Other commitments (including
- - -
supplementary ones)
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 reporting 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 Investments into securities
□Applicable √Inapplicable
3.5.2 Researches, interviews and visits received in the reporting period
Main discussion and materials
Time Place Way of reception Visitor
provided by the Company
The overall operation of the
6/F Huang Gang
6 Sept. 2011 Field research Shareholders Company and basic situation of
Business Centre
relevant projects
3.6 Investment on derivative products
□Applicable √Inapplicable
3.6.1 Number of derivative products held at the end of the reporting period
□Applicable √Inapplicable
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