Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Stock Abbr.: *STGS Stock Code: 200056 Announcement No.: 2012-51
Shenzhen International Enterprise Co., Ltd.
Abstract of the 2012 Semi-Annual Report
I. Important Notes
The Board of Directors, the Supervisory Committee, as well as directors, supervisors and senior executives of
Shenzhen International Enterprise Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report
does not contain any false information, misleading statement or material omission and will take individual and/or
joint liabilities for the factuality, accuracy and completeness of this report.
All directors attended the board session for reviewing this report.
The semi-annual financial report has not been audited by a CPAs firm.
Zheng Kanghao, the principal of the Company, Chen Xiaohai, the principal of the accounting work, and Xu
Xiaoyun, the principal of the accounting organ (the person-in-charge of accounting), hereby ensure that the
financial statements enclosed in this report are factual and complete.
[English Translation for Reference Only. Should there be any discrepancy between the two versions, the Chinese
version shall prevail.]
II. Company Profile
（I）Basic information
A-share abbreviation *STGS
A-share code 000056
Stock exchange listed with Shenzhen Stock Exchange
Company Secretary Securities Affairs Representative
Name Cao Jian Wu Xiaoshuang
6/F, Huanggang Business Center, No. 2028 Huanggang Business Center, No. 2028
Contact address
Jintian Road, Futian District, Shenzhen, Jintian Road, Futian District, Shenzhen,
PRC PRC
Tel. (0755)82281888 (0755)82535565
Fax (0755)82566573 (0755)82566573
cj000056@21cn.com zhaiwu2006@21cn.com
E-mail
（II）Financial highlights
1. Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
√ Yes □ No
31 Dec. 2011 Increase/decrease (%)
30 Jun. 2012
Before adjustment After adjustment After adjustment
Total assets (RMB Yuan) 1,711,777,392.37 1,537,761,372.58 1,545,337,848.28 10.77%
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Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Owners’ equity attributable to
shareholders of the Company (RMB -17,879,024.12 -84,350,914.14 -79,115,509.33
Yuan)
Share capital (share) 220,901,184.00 220,901,184 220,901,184.00
Net assets per share attributable to
shareholders of the Company (RMB -0.0809 -0.38 -0.36
Yuan/share)
Liability/asset ratio（%） 117.93% 123.99% 123.5%
Jan.-Jun. 2011 Increase/decrease (%)
Major accounting data Jan.-Jun. 2012
Before adjustment After adjustment After adjustment
Gross operating revenues (RMB
33,927,324.83 6,482,200.61 6,482,200.61 423.39%
Yuan)
Operating profit (RMB Yuan) 62,008,494.68 -21,111,728.17 -21,111,728.17
Total profit (RMB Yuan) 62,602,092.73 -20,656,273.71 -20,656,273.71
Net profit attributable to
shareholders of the Company (RMB 67,663,758.14 -15,518,392.05 -15,518,392.05
Yuan)
Net profit attributable to
shareholders of the Company after
-23,275,148.05 -15,814,437.44 -15,814,437.44
deducting non-recurring gains and
losses (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.306 -0.07 -0.07
Diluted EPS (RMB Yuan/share) 0.306 -0.07 -0.07
Weighted average ROE (%) -33.34% -33.34%
Weighted average ROE after
deducting non-recurring gains and -33.97% -33.97%
losses (%)
Net cash flow from operating
-91,931,077.98 -69,614,199.80 -69,614,199.80
activities (RMB Yuan)
Net cash flow per share from
operating activities (RMB -0.416 -0.32 -0.32
Yuan/share)
Notes to major accounting data and financial indexes before the end of the reporting period (Please give notes if
there is any retrospective adjustment):
According to the resolution made at the 3rd Special Shareholders’ General Meeting for 2012, in the accounting
policy of the Company, the subsequent measurement method for investing properties was changed from the cost
method to the fair value method.
According to the Accounting Standards for Business Enterprises, the financial statements as at 31 Dec. 2011
should be retrospectively adjusted due to this change of the accounting policy. Because the investing property in
progress—Wongtee IA Shopping Mall—was not completed yet, it was still measured at the cost method before it
reached the expected usable condition. Except for the mall, influence of fair value changes of leased-out buildings
as investing properties should be retrospectively adjusted due to this change of the accounting policy.
2. Items of non-recurring gains and losses
√Applicable □Inapplicable
Items Jan.-Jun. 2012 (RMB Yuan) Notes
Gains and losses on disposal of non-current assets 103,675,861.68
Tax rebate, reduction or exemption due to un-authorized
approval or the lack of formal approval documents
Government grants recognized in the current year, except
for those acquired in the ordinary course of business or
granted at certain quotas or amounts according to the
country’s unified standards
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Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Capital occupation fees received from non-financial
enterprises that are included in current gains and losses
Gains generated when the investment costs of the
Company’s acquiring subsidiaries, associates and joint
ventures are less than the fair value of identifiable net assets
in the investees attributable to the Company in the
acquisition of the investments
Exchange gains and losses of non-monetary assets
Gains and losses through entrusting others to invest or
manage assets
Various asset impairment provisions due to acts of God such
as natural disasters
Gains and losses on debt restructuring
Enterprise reorganization expenses, such as expenses on
employee settlement and integration
Gains and losses on the parts exceeding the fair value when
prices of transactions become unfair
Net current gains and losses from the period-begin to the
combination date of subsidiaries due to business
combinations under the same control
Gains and losses on contingent matters which are irrelevant
to the normal operation of the Company
Gains and losses on fair value changes of transactional
financial assets and liabilities, and investment gains on
disposal of transactional financial assets and liabilities and
available-for-sale financial assets, except for the effective
hedging business related to the Company’s normal operation
Reversal of impairment provisions for accounts receivable
which are separately tested for impairment signs
Gains and losses on entrustment loans from external parties
Gains and losses on fair value changes of investing
properties for which the fair value method is adopted for -149,546.00
subsequent measurement
Current gain and loss effect due to a just-for-once
adjustment to current gains and losses according to
requirements of taxation and accounting laws and
regulations
Custodian fee income from entrusted operations with the
Company
Other non-operating incomes and expenses besides the
-654.50
items above
Other gain and loss items that meet the definition of
non-recurring gains and losses
Minority interests effects -12,586,754.99
Income tax effects
Total 90,938,906.19 --
3. Net profit and net asset differences between financial reports disclosed according to the international and
Chinese accounting standards respectively
□Applicable √Inapplicable
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Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
4. Net profit and net asset differences between financial reports disclosed according to the overseas and
Chinese accounting standards respectively
□Applicable √Inapplicable
III. Changes in Share Capital and Particulars about Shareholders
（I）Changes in share capital
√Applicable □Inapplicable
Before the change Increase/decrease (+, -) After the change
Capitalizat
Issuance ion of
Proportion Bonus Proportio
Number of new public Others Subtotal Number
(%) shares n (%)
shares reserve
fund
I. Shares subject to trading
340,431 0.15% 0 0 0 0 0 340,431 0.15%
moratorium
1. State-owned shares 0 0% 0 0%
2. State-owned legal
0 0% 0 0%
person shares
3. Other domestic shares 0 0% 0 0%
Including: Shares held by
0 0% 0 0%
domestic legal persons
Shares held by
0 0% 0 0%
domestic individuals
4. Shares held by overseas
0 0% 0 0%
shareholders
Including: Shares held by
0 0% 0 0%
overseas legal persons
Shares held by
0 0% 0 0%
overseas individuals
5. Shares held by senior
340,431 0.15% 340,431 0.15%
management staff
II. Shares not subject to 220,560,7 220,560,7
99.85% 0 0 0 0 0 99.85%
trading moratorium 53 53
1. Ordinary shares 119,212,9 119,212,9
53.97% 53.97%
denominated in RMB 92 92
2. Domestically listed 101,347,7 101,347,7
45.88% 45.88%
foreign shares 61 61
3. Overseas listed foreign
0 0% 0 0%
shares
4. Others 0 0% 0 0%
220,901,1 220,901,1
III. Total shares 100% 0 0 0 0 0 100%
84.00 84.00
（II）Shares held by the top ten holders of tradable shares/shares not subject to trading
moratorium
Shares held by the top ten shareholders and the top ten shareholders holding tradable shares
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Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Total number of shareholders 13,961
Particulars about shares held by the top ten shareholders
Sharehold Pledged or frozen shares
Number of
Name of shareholder (full Nature of ing Total shares held at
non-tradable Number of
name) shareholder percentag the period-end
shares held Status of shares shares
e (%)
MULTI PROFIT ASIA
Foreign
PACIFIC INVESTMENT 13.7% 30,264,192 0 In pledge 30,000,000
corporation
LTD
SHENZHEN SPECIAL
ECONOMIC ZONE State-owned
9.06% 20,010,772 0
DEVELOPMENT corporation
(GROUP) CO., LTD.
UOB INVESTMENT Foreign
7.03% 15,528,941 0
(CHINA) LIMITED corporation
Foreign natural
ZHONG ZHIQIANG 3.72% 8,215,594 0
person
GUOYUAN SECURITIES Foreign
3.46% 7,637,130 0
(HK) CO., LTD. corporation
SHENZHEN WONGTEE Domestic
REAL ESTATE non-state-owned 2.31% 5,106,702 0
INVESTMENT CO., LTD. corporation
GUOTAI JUNAN
Foreign
SECURITIES(HONGKON 1.01% 2,229,808 0
corporation
G) LIMITED
Domestic natural
CHEN SHU 0.97% 2,149,327 0
person
Domestic natural
ZENG HAIXING 0.97% 2,148,715 0
person
SHANGHAI HONG KONG
Foreign
WANGUO SECURITIES 0.89% 1,970,878 0
corporation
CO., LTD.
Particulars about shares held by the top ten shareholders holding tradable shares
Number of tradable shares Type and number of shares
Name of shareholder
held Type Number
MULTI PROFIT ASIA PACIFIC
30,264,192 B-share 30,264,192
INVESTMENT LTD
SHENZHEN SPECIAL ECONOMIC ZONE
20,010,772 A-share 20,010,772
DEVELOPMENT (GROUP) CO., LTD.
UOB INVESTMENT (CHINA) LIMITED 15,528,941 B-share 15,528,941
ZHONG ZHIQIANG 8,215,594 B-share 8,215,594
GUOYUAN SECURITIES (HK) CO., LTD. 7,637,130 B-share 7,637,130
SHENZHEN WONGTEE REAL ESTATE
5,106,702 A-share 5,106,702
INVESTMENT CO., LTD.
GUOTAI JUNAN SECURITIES(HONGKONG)
2,229,808 B-share 2,229,808
LIMITED
CHEN SHU 2,149,327 B-share 2,149,327
ZENG HAIXING 2,148,715 B-share 2,148,715
SHANGHAI HONG KONG WANGUO
1,970,878 B-share 1,970,878
SECURITIES CO., LTD.
Inquired by the Company with letter, there was no related relationship between
Explanation on associated relationship or/and Multi Profit Asia Pacific and Shenzhen Wongtee Real Estate Investment Co., Ltd.
persons acting in concert among the In the meanwhile, actual controlling holder of Multi Profit Asia Pacific, Mr.
above-mentioned shareholders Zheng Kanghao personally holds 571,511 shares of B shares (as at 30 Jun. 2012).
SDG and other shareholders in the above table are not related parties. Other than
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Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
that, it is unknown whether there were other related relations or action-in-concert
regulated in Administrative Measures for Takeover of Listed Companies among
the above shareholders.
（III）Change of the controlling shareholder and the actual controller
□Applicable √Inapplicable
IV. Particulars about Directors, Supervisors and Senior Management
（I）Shareholding changes of directors, supervisors and senior management
Number of Number of
Of which: Number of
Number of shares shares Number of
number of stock options Reason for
Name Office title shares held at increased in decreased in shares held at
restricted held at change
period-begin reporting reporting period-end
shares held period-end
period period
Shareholding
Zheng increase in
Chairman 453,909 117,602 0 571,511 340,431 0
Kanghao the secondary
market
V. Report of the Board of Directors
（I）Main business lines classified by industries and products
Unit: RMB Yuan
Main business lines classified by industries
Increase/decrease Increase/decrease
Increase/decrease
of operating of gross profit
of operating cost
Operating Gross profit rate revenue rate compared
Industry Operating cost compared with
revenue (%) compared with with the same
the same period
the same period period last year
last year (%)
last year (%) (%)
Real estate 27,156,978.00 29,083,411.56 -7.09%
Property
6,696,746.83 4,734,753.18 29.3% 7.79% -20.6% 25.22%
management
（II）Main business lines classified by regions
Unit: RMB Yuan
Increase/decrease compared with the same
Region Operating revenue
period last year (%)
Shenzhen 33,853,724.83 463.72%
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Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
（III）Reasons for any significant change in main business and its structure
□Applicable √Inapplicable
（IV）Reasons of significant changes in profitability of main business (gross profit rate)
compared with that in the last year
□Applicable √Inapplicable
（V）Analysis on reasons of significant changes in profit breakdown compared with the last
year
√Applicable □Inapplicable
In the reporting period, the Company and its owned subsidiaries respectively sold the equity of Shenzhen
International Enterprise Business Administration Co., Ltd. and Shenzhen Longgang International Enterprise Co.,
Ltd. at a total price of RMB 120 million, which brought large investment profit.
（VI）Particulars about utilization of the raised funds
1. Utilization of the raised funds
□Applicable √Inapplicable
2. Change of projects invested with raised funds
□Applicable √Inapplicable
（VII）Revision of the Board of Directors’ business plan for the second half of the year
√Applicable □Inapplicable
The Wongtee Plaza was originally planned to put into trial-operation in Aug 2012. Due to the new amending
requirements proposed by Shenzhen Government for the design plan of the south elevation of the project, together
with more weathers of typhoon and thunderstorm in Shenzhen in the 2nd half year, the dates of project completion
and trial-operation are expected to be delayed as compared with the original plan. However, the Company will try
to start trial-operation before the end of 2012.
（VIII）Business performance estimate for Jan.-Sept. 2012
Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the period
from the beginning of the year to the end of the next reporting period compared with the same period of last year,
as well as the reasons
□Applicable √Inapplicable
（IX）Explanation of the Board of Directors on “Non-standard Auditing Report” issued by
the CPA firm for the reporting period
□Applicable √Inapplicable
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Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
（X）Explanation of the Board of Directors on changes and solutions of the issues involved in
the “Non-standard Auditing Report” issued by the CPA firm for last year
√Applicable □Inapplicable
On 18 Apr 2012, China Audit International Certified Public Accountants LTD. issued audit report with
emphasized paragraphs for items and qualified opinion for Y2011. Statement of the Board for change and
handling of concerned items is listed below:
(1) Qualified item: Shops of staffs are classified as the Company’s historical problems, which will be positively
processed by the Board. Management of the Company organized a focused tem to positively communicate and
process the issue with staffs who subscribed shops at that time. Besides, the Company has sued to the court
regarding the item of shop subscription by some staffs, and some subscribers have sued Rongfa Company. (For
details, please refer to VII (III) Significant Events of Litigation and Arbitration)
(2) Emphasized item
Problems regarding sustainable operating capability of the Company:
①Operating condition of the Company will be substantially improved after the opening of Wongtee Plaza.
②In Mar 2012, the Company borrowed a new loan of RMB 0.2 billion, which provided capital guarantee for
company operation and project construction. With the progress of the project, the Company is expected to further
increase financing and improve liability structure, so as to meet the development need of the Company’s core
projects.
③In 2012, the Company would intensify the efforts of cash realization of forests, and has turned standing timbers
covering 6,000 mu area into cash.
④In order to liquidize assets, the Company and its owned subsidiary, Rongfa Company, respectively sold the
equity of Shenzhen International Enterprise Business Administration Co., Ltd. and Shenzhen Longgang
International Enterprise Co., Ltd. at a total price of RMB 120 million, which provided a certain amount of cash
flow for company operation.
VI. Significant Events
（I）Purchase, sales and reorganization of assets
1. Purchase of assets
□Applicable √Inapplicable
Notes to purchase of assets:
2. Sale of assets
√Applicable □Inapplicable
Net profit Relations
Ratio of hip
contribute Whether Whether
the net between
d by the or not the or not the
profit the
asset ownershi creditor’s
Transacti Gain/loss contribute transactio
from the Related-p p of the right and
on price on sale d to the n party
Transacti Asset Date of period-be arty Pricing asset liabilities
(RMB (RMB Company and the
on party sold sale gin to the transactio principle involved involved
Ten Ten by the Company
date of n or not has been have been
thousand) thousand) asset sale (applicabl
sale fully fully
to the e for
(RMB transferre transferre
total related-pa
Ten d d
profit (%) rty
thousand)
transactio
8
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
ns)
Total
equity of
Shenzhen
Internatio
nal
Enterprise
Business
Administr
Shenzhen
ation Co.,
Leanju
Ltd. and
Property May Market
equity 12,000 -0.364 10,308.16 No Yes Yes 134.61%
Develop 11,2012 Pricing
owned by
ment Co.,
Rongfa
Ltd.
Company
in
Shenzhen
Longgang
Internatio
nal
Enterprise
Co., Ltd.
Explanation on sale of asset
In order to liquidize assets, focus resources to get core projects of the Company well done, strengthen main
businesses of the Company, as well as solve the cash flow problem of the Company, on 11 May 2012, the
Company convened the Annual Shareholders General Meeting of Y2011, which reviewed and approved the
Proposal on the Sale of Total Equity of Shenzhen International Enterprise Business Administration Co., Ltd. and
Equity Owned by Rongfa Company in Shenzhen Longgang International Enterprise Co., Ltd.
The Company and its owned subsidiary, Rongfa Company, have separately signed the Agreement of Equity
Transfer with the equity transferee, Shenzhen Leanju Property Development Co., Ltd. (hereinafter referred to as
Leanju Company), transferring 100% equity owned by the Company in Shenzhen International Enterprise
Business Administration Co., Ltd. and 25% equity owned by Rongfa Company in Shenzhen Longgang
International Enterprise Co., Ltd. (hereinafter referred to as Longgang International Enterprise) with a total
transfer amount of RMB 120 million.
As at the end of the reporting period, the Company and Rongfa Company had fully received a sum of RMB 109
million for equity transfer. Leanju Company would pay the rest amount for equity transfer according to payment
progress agreed in the Agreement of Equity Transfer.
3. Progress of these events after the publication of the assets reorganization report or public notices on the
purchases or sales of assets, as well as the influences of these events on the operation results and financial
status of the Company in this reporting period
□Applicable √Inapplicable
（II）Guarantee events
√Applicable □Inapplicable
Unit: RMB Ten thousand
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Disclosure Guarante
Actual
date of Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party relevant guarantee related
guarantee (date of guarantee guarantee or not
announcem amount party or
agreement)
ent not
9
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Until the
borrowing
property
Sale guarantee for 20 Apr.
722.09 1 Dec. 1999 722.09 Warranty owner No No
Rongfa Company 2012
repays the
full amount
of the loan
Until the
borrowing
Sale guarantee for property
20 Apr.
Huizhou Rongfa 610.12 1 May 2004 610.12 Warranty owner No No
2012
Company repays the
full amount
of the loan
Total external guarantee line Total actual occurred amount
approved during the reporting 0 of external guarantee during 0
period (A1) the reporting period (A2)
Total external guarantee line that Total actual external guarantee
has been approved at the end of 1,332.21 balance at the end of the 1,332.21
the reporting period (A3) reporting period (A4)
Guarantees provided by the Company for its subsidiaries
Disclosure Guarante
Actual
date of Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party relevant guarantee related
guarantee (date of guarantee guarantee or not
announcem amount party or
agreement)
ent not
Shenzhen Rongfa
4 Jun. 2011 120,000 2 Jul. 2011 Mortgage 10 years No No
Investment Co., Ltd.
Total guarantee line approved for Total actual occurred amount
the subsidiaries during the of guarantee for the
reporting period 0 0
subsidiaries during the
(B1) reporting period (B2)
Total guarantee line that has been
Total actual guarantee balance
approved for the subsidiaries at
49,000 for the subsidiaries at the end 49,000
the end of the reporting period
of the reporting period (B4)
(B3)
Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)
Total guarantee line approved Total actual occurred amount
during the reporting period 0 of guarantee during the 0
(A1+B1) reporting period (A2+B2)
Total guarantee line that has been
approved at the end of the Total actual guarantee balance
reporting period 50,332.21 at the end of the reporting 50,332.21
period (A4+B4)
(A3+B3)
Proportion of total guarantee amount (A4+B4) to the net assets
of the Company
Of which:
Amount of guarantee for shareholders, actual controller and
0
related parties (C)
Amount of debt guarantee provided for the guaranteed party
whose asset-liability ratio is not less than 70% directly or 50,332.21
indirectly (D)
Part of the amount of the total guarantee over 50% of net assets
0
(E)
Total amount of the above three guarantees (C+D+E) 50,332.21
Explanation on possible bearing joint responsibility of
liquidation due to immature guarantee
Explanation on provision of guarantees for external parties in
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Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
violation of the prescribed procedure
（III）Non-operating credits and liabilities with related parties
Was there any non-operating credit or liability with any related party?
√ Yes □ No
Unit: RMB Ten thousand
Funds provided by the Company for related Funds provided by related parties for the
Related party parties Company
Incurred amount Balance Incurred amount Balance
ZHENG KANGHAO 108.49
SHENZHEN WONGTEE REAL
1,100
ESTATE GROUP CO., LTD.
POWERLANDHOLDINGLIMITED 699.96
Total 1,908.45
Of which, the funds provided by the Company for the controlling shareholder and its subsidiaries stood at RMB 0
for the reporting period, with the balance being RMB 0.
（IV）Significant lawsuits and arbitrations
√Applicable □Inapplicable
(1) The case on contract dispute between Shenzhen Zhongtie Property Co., Ltd. (hereinafter referred as “Zhongtie
Property”) and Shenzhen Rongfa Investment Co., Ltd. (hereinafter called “Rongfa Company”):
Overview of the case: On 17 Feb. 2009, Rongfa Company and Zhongtie Property signed a Property Management
Agreement on the Shopping Mall Project in Futian CBD. Due to the company’s overall planning and position for
the project, it required to release the contract with Rongfa Company in 2010.
Zhongtie Property sued to Shenzhen Futian District People’s Court on 15 Dec. 2010, appealing Rongfa Company
to pay the penalty as RMB 5 million and other losses as RMB 8,658,315.88.
Progress of the case: the Company received a Judgment Letter for the first instance from Shenzhen Futian District
People’s Court in Oct. 2011, sentencing it to pay a penal sum of RMB 4 million to Zhongtie Property. And the
Company has raised the appeal, which is under the trial for the second instance.
(2) The case on equity transfer dispute between Malaysia Foh Chong & Sons SDN.BHD. (hereinafter referred as
“Foh Chong Company”, which sued the Company) and the Company:
Overview of the case: according to the statement of complaint from Foh Chong Company, Foh Chong Company
(the plaintiff) and the Company (defendant) signed Equity Transfer Contract with Shenzhen Rongfa Investment
Co., Ltd. on 31 May 2001, Foh Chong Company transferred its 10% equity of Shenzhen Rongfa Investment Co.,
Ltd. to the Company with the transfer price as RMB 20.6 million. However, after the contract taking into effect,
the Company didn’t pay the equity transfer payment.
In Aug. 2011, the Company received the charging document from Shenzhen Intermediate People’s Court by Foh
Chong Company, Foh Chong Company required that: (1) sentencing the defendant to pay it the principal, interest
and overdue penalty totaling RMB 37,077,645.55 to the plaintiff; (2) sentencing the defendant to undertake all the
losses caused by non-fulfillment of its legal obligation and the RMB 37,077,645.55 costs as well as other
expenses related with the case.
Progress of the case: the Company received a Judgment Letter for the first instance from Shenzhen Intermediate
People’s Court at the end of Mar. 2012, sentencing the Company to pay the principal of RMB 20.6 million,
interest and overdue penalty within 10 days since the judgment coming into effect (the interest was based on the
principal of RMB 20.6 million and at the loan interest rate of the People’s Bank of China calculated from 1 Jun.
2001 to 31 Dec. 2009; and the overdue penalty was calculated by 0.3‰ of the total accounts payable per day from
1 Jan. 2010 to the payment date decided by the judgment.) (For details, please refer to the Company’s
announcements about significant litigation published on www.cninfo.com.cn, Securities Times, and Hong Kong
Ta Kung Pao on 4 Apr 2012)
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Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
The Company has raised an appeal to the Higher People’s Court of Guangdong Province for the case, which is
under the trial for the second instance.
(III) The case on dispute for guarantee obligation recovery between the Company and Shum Kong Industry & Trade
Co., Ltd. (hereinafter referred as Shum Kong Industry & Trade):
Overview of the case: On 27 Sep. 1999, Shum Kong Industry & Trade gained a loan of RMB 10 million from
Shennan East Road Branch of Shenzhen Development Bank, for which the Company provided the joint guarantee.
After the expiry date of the Loan Contract, Shum Kong Industry & Trade only paid part of the interest, which still
owed the principal sum and part of interest for the bank.
On 30 Dec. 2002, the Company undertook the joint obligation in accordance with the (2002) SZFJYC Zi No. 5
document of Civil Mediation Paper from Shenzhen Intermediate People's Court, and paid the principal sum and
remained interest for Shum Kong Industry & Trade. On 26 Mar. 2003, the Company applied to Shenzhen
Intermediate People's Court for compulsory execution of the (2002) SZFJYC Zi No. 5 document of Civil
Mediation Paper, requiring to recover the security of RMB 13,583,873.68 paid in advance from Shum Kong
Industry & Trade. The case was executed by Intermediate Court of Guangzhou Railway Transport with the case
number: (2005) GTZFZ Zi No. 59. On 16 Jun. 2009, the Company had sent the application for joining in the
distribution to Shenzhen Intermediate People's Court and Intermediate Court of Guangzhou Railway Transport,
requiring joining in the distribution for sales income of about RMB 18 million from the land of Shum Kong
Industry & Trade with land No. T102-0001.
Progress of the case: Under the auspices of Shenzhen Intermediate People's Court, the Company made friendly
negotiation with other creditors sealing up the land of Shum Kong Industry & Trade, and reached an agreement on
the account for selling the sealed-up land, the Company could receive RMB 2,651,149.33 from it. And the
Company has received RMB 2,646,498.19 of the account for selling the sealed-up land (after deducting the paid
executive expenses) in Mar. 2012.
(4) The case on equity transfer dispute between Shenzhen Rongfa Investment Co., Ltd. and Shenzhen Yahaoyuan
Investment Co., Ltd. (hereinafter referred as “Yahaoyuan”):
Overview of the case: For the case of equity transfer dispute between Rongfa Company and Shenzhen Yahaoyuan
Investment Co., Ltd., Rongfa Company sued to Shenzhen Longgang People’s Court in Oct. 2011.
Progress of the case: In Feb. 2012, Rongfa Company received the Civil Judgment Letter [(2011) SLFMEC Zi No.
4549] from Shenzhen Longgang People’s Court, and the court believed that the evidence provided by the plaintiff
couldn’t prove the land, which is agreed in the three contracts between the plaintiff and the defendant, is the No.
G10205-0267 land required to be returned the land use right to the plaintiff by the defendant. Therefore, the
plaintiff should undertake the negative result for vague agreement in the contract. The court judged for the first
instance to reject the appeal of the plaintiff. And the case’s acceptance fee of RMB 171,800 should be undertaken
by the plaintiff. (For details please refer to the announcements on significant lawsuits disclosed in Securities
Times, Hong Kong Ta Kung Pao and http://www.cninfo.com.cn on 26 Oct. 2011 and 22 Feb. 2012 respectively).
The Company has raised an appeal for the case, which is under the trial for the second instance.
(5) The case on shop subscription from staffs
Overview of the case: To properly settle the event of internal subscription from staffs for shops in Wongtee
International Enterprise Shopping Plaza (For details about the event of internal subscription, please refer to X.
Other significant events in the Notes to 2011 Annual Report of the Company.), Rongfa Company sued 3 people,
including Chen XX, Song XX, and Li XX, to Shenzhen Futian District People’s Court in Aug. 2011.
Progress of the case: In Jul. 2012, Rongfa Company received a Civil Judgment Letter for the first instance from
Shenzhen Futian District People’s Court regarding Shenzhen Rongfa Investment Co., Ltd.’s separate prosecution
for contract dispute on commodity properties subscription of 3 people (including Chen XX, etc.).
The judgment result for the case in which Rongfa Company sued Chen XX and Li XX is listed below:
① The Paper of Internal Subscription signed by the plaintiff and defendants for Shops in IA Mall is legal and
effective；② The fulfillment of subscription paper signed by the plaintiff and defendants should be terminated;
③ Other claims from the plaintiff are rejected; ④ Other counterclaims from the defendants are rejected.
The judgment result for the case in which Rongfa Company sued Song XX to confirm the internal subscription
relation between the plaintiff and the defendant as invalid is as the following: The claim from the plaintiff,
Shenzhen Rongfa Investment Co., Ltd., is rejected.
The Company intended to raise an appeal.
In addition, Rongfa Company successively received the litigation documents, including the Notice of Responding
to Action and the Notice of Adducting Evidence, related to the case in which other 7 people (including Yang XX,
12
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
etc.) sued Rongfa Company to Shenzhen Futian District People’s Court regarding the event of internal
subscription of shops. They required the court to decree Rongfa Company to deliver shops to the plaintiffs
immediately and undertake the lawsuit charge. The aforesaid case is under the trial for the first instance. (For
details, please refer to the Company’s announcements on significant litigation published on
http://www.cninfo.com.cn, Securities Times, and Hong Kong Ta Kung Pao on 5 Jul. 2012)
（V） Other significant events as well as analysis and explanations on their impact and
solutions
□Applicable √Inapplicable
1. Securities investment
□Applicable √Inapplicable
Notes to securities investment:
2. Holding equity of other listed companies
□Applicable √Inapplicable
Notes to holding equity of other listed companies:
3. Capital occupation during the reporting period and debt-clearing progress
□Applicable √Inapplicable
The accountability plan put forward by the Board of Directors when the Company had not completed collecting
the capital occupied for non-operating purposes by the end of the reporting period
□Applicable √Inapplicable
4. Fulfillment of commitments
Commitments made by the Company, its directors, supervisors, senior management, shareholders holding more
than 5% shares of the Company, actual controller or any other relevant party in this reporting period, or such
commitments carried down into this reporting period
√Applicable □Inapplicable
Commitment Commitment maker Contents Execution
Commitments made in a share reform
The obligor for information
disclosure shall not reduce
the shares of Multi Profit
Asia Pacific Investment Ltd.
Commitments made in an acquisition held by the obligor from this
Zheng Kanghao In strict execution
report or report on equity changes acquisition or reduce the
shares of SZIEC indirectly
held by the obligor from this
acquisition within the future
60 months.
Commitments made in an asset exchange
13
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Commitments made in share issuance
Other commitments made to minority
shareholders
5. Pre-plan of the Board of Directors for profit distribution or turning capital reserves into share capital
□Applicable √Inapplicable
6. Items of other comprehensive income
Unit: RMB Yuan
Items Jan.-Jun. 2012 Jan.-Jun. 2011
1. Profits/(losses) from available-for-sale financial assets
Less: Effects on income tax generating from available-for-sale
financial assets
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
2. Interests in the investee entities’ other comprehensive income as per
equity method
Less: Effects on income tax generating from the interests in the
investee entities’ other comprehensive income as per equity method
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
3. Profits/(losses) from cash flow hedging instrument
Less: Effects on income tax generating from cash flow hedging
instrument
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
The adjustment value that is the converted initial recognition amount of
arbitrage project
Subtotal
4. Converted amount of foreign currency financial statements
Less: Net value of disposal of oversea operations that recognized into
current profit and loss
Subtotal
5. Other
Less: Effects on income tax generating from the others that included
into other comprehensive income
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
Total 0 0
（VI）Particulars about researches, visits and interviews received in this reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided by the
Company
6/F, Huanggang The Company’s operation
4 May 2012 Field research Individual Shareholder
Business Center and project progress
6/F, Huanggang The Company’s operation
25 May 2012 Field research Individual Shareholder
Business Center and project progress
6/F, Huanggang The Company’s operation
20 Jun. 2012 Field research Individual Shareholder
Business Center and project progress
14
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
VII. Financial Report
（I）Audit opinion
Has this interim report been audited?
□ Yes √ No
（II）Financial statements
Consolidated statements or not?
√ Yes □ No
1. Consolidated balance sheet
Prepared by Shenzhen International Enterprise Co., Ltd.
Unit: RMB Yuan
Item Note 30 Jun. 2012 31 Dec. 2011
Current Assets:
Monetary funds 124,655,446.69 19,989,682.85
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable
Accounts receivable 21,509,528.20 515,018.36
Accounts paid in advance 22,943,278.12 16,772,527.40
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 4,428,723.68 6,160,436.94
Financial assets purchased under
agreements to resell
Inventories 1,469,856,794.69 1,405,632,415.91
Non-current assets due within 1
year
Other current assets 1,050,000.00
Total current assets 1,643,393,771.38 1,450,120,081.46
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 5,699,905.49 5,699,905.49
Investing property 8,524,532.00 8,674,078.00
Fixed assets 51,359,230.73 52,552,621.28
15
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 97,633.20 25,413,328.71
R&D expense
Goodwill
Long-term deferred expenses 2,702,319.57 2,877,833.34
Deferred income tax assets
Other non-current assets
Total of non-current assets 68,383,620.99 95,217,766.82
Total assets 1,711,777,392.37 1,545,337,848.28
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Customer bank deposits and due
to banks and other financial
institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 0.00 0.00
Accounts payable 20,654,562.23 76,992,945.52
Accounts received in advance 9,045,080.51 1,243,980.07
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
3,216,768.71 9,635,793.00
payable
Tax payable 3,869,926.44 5,384,922.31
Interest payable 4,351,444.44 3,640,635.05
Dividend payable 5,127,701.36 5,127,701.36
Other accounts payable 160,961,513.06 174,760,938.23
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting
of securities
Non-current liabilities due within
13,000,000.00 314,000,000.00
1 year
Other current liabilities
Total current liabilities 220,226,996.75 590,786,915.54
Non-current liabilities:
Long-term borrowings 1,709,670,000.00 1,228,850,000.00
Bonds payable
Long-term payables
Specific payables
16
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Estimated liabilities 86,817,813.72 86,813,170.64
Deferred income tax liabilities 1,861,187.29 1,894,118.92
Other non-current liabilities 148,725.29 148,725.29
Total non-current liabilities 1,798,497,726.30 1,317,706,014.85
Total liabilities 2,018,724,723.05 1,908,492,930.39
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 220,901,184.00 220,901,184.00
Capital reserves 65,888,074.13 72,315,347.06
Less: Treasury stock
Specific reserves
Surplus reserves 125,929,834.48 125,929,834.48
Provisions for general risks
Retained profits -430,598,116.73 -498,261,874.87
Foreign exchange difference
Total equity attributable to owners
-17,879,024.12 -79,115,509.33
of the Company
Minority interests -289,068,306.56 -284,039,572.78
Total owners’ (or shareholders’)
-306,947,330.68 -363,155,082.11
equity
Total liabilities and owners’ (or
1,711,777,392.37 1,545,337,848.28
shareholders’) equity
Legal representative: Zheng Kanghao Person-in-charge of the accounting work: Chen Xiaohai
Chief of the accounting division: Xu Xiaoyun
2. Balance sheet of the Company
Unit: RMB Yuan
Item Note 30 Jun. 2012 31 Dec. 2011
Current Assets:
Monetary funds 266,860.58 119,729.05
Transactional financial assets
Notes receivable
Accounts receivable 18,000,000.00
Accounts paid in advance
Interest receivable
Dividend receivable
Other accounts receivable 107,526,427.88 44,463,138.71
Inventories
Non-current assets due within 1
year
Other current assets
Total current assets 125,793,288.46 44,582,867.76
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
17
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Long-term equity investment 43,646,623.59 65,073,896.52
Investing property 6,740,865.00 6,885,080.00
Fixed assets 4,875,611.29 5,524,253.95
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets
R&D expense
Goodwill
Long-term deferred expenses 657,333.34 657,333.34
Deferred income tax assets
Other non-current assets
Total of non-current assets 55,920,433.22 78,140,563.81
Total assets 181,713,721.68 122,723,431.57
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable
Accounts payable
Accounts received in advance 60,000.00 60,000.00
Employee’s compensation
1,507,522.08 4,945,706.86
payable
Tax payable 4,223,818.63 4,227,138.69
Interest payable
Dividend payable 5,127,701.36 5,127,701.36
Other accounts payable 55,654,658.96 62,152,881.86
Non-current liabilities due within
1 year
Other current liabilities
Total current liabilities 66,573,701.03 76,513,428.77
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities 18,387,017.96 18,387,017.96
Deferred income tax liabilities 1,488,210.67 1,521,658.94
Other non-current liabilities
Total non-current liabilities 19,875,228.63 19,908,676.90
Total liabilities 86,448,929.66 96,422,105.67
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 220,901,184.00 220,901,184.00
Capital reserves 58,524,171.66 64,951,444.59
Less: Treasury stock
18
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Specific reserves
Surplus reserves 96,841,026.39 96,841,026.39
Retained profits -281,001,590.03 -356,392,329.08
Foreign exchange difference
Total owners’ (or shareholders’)
95,264,792.02 26,301,325.90
equity
Total liabilities and owners’ (or
181,713,721.68 122,723,431.57
shareholders’) equity
3. Consolidated income statement
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total operating revenues 33,927,324.83 6,482,200.61
Including: Sales income 33,927,324.83 6,482,200.61
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 74,850,893.28 27,593,928.78
Including: Cost of sales 33,945,931.43 6,816,911.34
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate charges 1,860,002.40 380,097.83
Selling and distribution
11,602,352.79
expenses
Administrative expenses 18,333,324.64 15,116,490.87
Financial expenses 8,864,069.65 5,142,446.26
Asset impairment loss 245,212.37 137,982.48
Add: Gain/(loss) from change in fair
-149,546.00
value (“-” means loss)
Gain/(loss) from investment
103,081,609.13
(“-” means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 62,008,494.68 -21,111,728.17
Add: non-operating income 1,480,534.58 504,910.00
Less: non-operating expense 886,936.53 49,455.54
Including: loss from non-current
877,995.93
asset disposal
19
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
IV. Total profit (“-” means loss) 62,602,092.73 -20,656,273.71
Less: Income tax expense -32,931.63
V. Net profit (“-” means loss) 62,635,024.36 -20,656,273.71
Including: Net profit achieved
by combined parties before the
combinations
Attributable to owners of the
67,663,758.14 -15,518,392.05
Company
Minority shareholders’ income -5,028,733.78 -5,137,881.66
VI. Earnings per share -- --
(I) Basic earnings per share 0.306 -0.07
(II) Diluted earnings per share 0.306 -0.07
Ⅶ. Other comprehensive incomes
Ⅷ. Total comprehensive incomes 62,635,024.36 -20,656,273.71
Attributable to owners of the
67,663,758.14 -15,518,392.05
Company
Attributable to minority
-5,028,733.78 -5,137,881.66
shareholders
Where business mergers under the same control occurred in this report period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
Legal representative: Zheng Kanghao Person-in-charge of the accounting work: Chen Xiaohai
Chief of the accounting division: Xu Xiaoyun
4. Income statement of the Company
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total sales 33,600.00 34,271.10
Less: cost of sales 0.00 8,345.70
Business taxes and surcharges 1,884.96 1,851.36
Distribution expenses
Administrative expenses 9,223,416.11 7,523,918.78
Financial costs -12,533,330.39 -10,353,542.25
Impairment loss 1,962,127.61 12,508,247.20
Add: gain/(loss) from change in fair
-144,215.00
value (“-” means loss)
Gain/(loss) from investment (“-”
75,000,000.00
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) 76,235,286.71 -9,654,549.69
Add: non-business income 3,650.00
Less: non-business expense 877,995.93 5,883.88
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) 75,357,290.78 -9,656,783.57
Less: income tax expense -33,448.27
IV. Net profit (“-” means loss) 75,390,739.05 -9,656,783.57
20
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income
VII. Total comprehensive income 75,390,739.05 -9,656,783.57
5. Consolidated cash flow statement
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of
38,961,808.12 11,046,772.54
commodities and rendering of service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of tradable
financial assets
Cash received from interest, handling
charges and commissions
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received
Other cash received relating to
96,120,915.55 30,447,863.13
operating activities
Subtotal of cash inflows from operating
135,082,723.67 41,494,635.67
activities
Cash paid for goods and services 95,029,835.42 74,059,575.03
Net increase of customer lendings
and advances
Net increase of funds deposited in the
central bank and amount due from
banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 29,303,899.64 12,803,130.49
Various taxes paid 4,894,102.10 2,193,105.67
Other cash payment relating to
97,785,964.49 22,053,024.28
operating activities
21
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Subtotal of cash outflows from
227,013,801.65 111,108,835.47
operating activities
Net cash flows from operating activities -91,931,077.98 -69,614,199.80
II. Cash flows from investing activities:
Cash received from withdrawal of
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other 2,350.00
long-term assets
Net cash received from disposal of
99,000,000.00
subsidiaries or other business units
Other cash received relating to
411.00
investing activities
Subtotal of cash inflows from
99,000,000.00 2,761.00
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 682,004.02 1,341,213.58
assets
Cash paid for investment 8,000,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries
7,200,000.00
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
15,882,004.02 1,341,213.58
investing activities
Net cash flows from investing activities 83,117,995.98 -1,338,452.58
III. Cash Flows from Financing
Activities:
Cash received from capital
8,000,000.00
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 1,200,000,000.00 2,222,000,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
1,208,000,000.00 2,222,000,000.00
activities
Repayment of borrowings 1,027,344,776.57 2,056,349,444.44
Cash paid for interest expenses and
59,422,210.92 70,546,890.32
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority shareholders
Other cash payments relating to
7,754,166.67 6,526,710.00
financing activities
Sub-total of cash outflows from
1,094,521,154.16 2,133,423,044.76
financing activities
Net cash flows from financing activities 113,478,845.84 88,576,955.24
IV. Effect of foreign exchange rate 0.00 -916.69
22
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
changes on cash and cash equivalents
V. Net increase in cash and cash
104,665,763.84 17,623,386.17
equivalents
Add: Opening balance of cash and
19,989,682.85 153,356,391.84
cash equivalents
VI. Closing balance of cash and cash
124,655,446.69 170,979,778.01
equivalents
6. Cash flow statement of the Company
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of
commodities and rendering of service
Tax refunds received
Other cash received relating to
28,923,233.77 26,913,139.76
operating activities
Subtotal of cash inflows from operating
28,923,233.77 26,913,139.76
activities
Cash paid for goods and services
Cash paid to and for employees 7,721,957.67 4,540,865.14
Various taxes paid 1,257,451.76 723,193.79
Other cash payment relating to
86,752,680.31 21,022,072.23
operating activities
Subtotal of cash outflows from
95,732,089.74 26,286,131.16
operating activities
Net cash flows from operating activities -66,808,855.97 627,008.60
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other -3,135.00 2,350.00
long-term assets
Net cash received from disposal of
72,000,000.00
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
71,996,865.00 2,350.00
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 40,777.50 572,030.00
assets
Cash paid for investment
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
40,777.50 572,030.00
investing activities
Net cash flows from investing activities 71,956,087.50 -569,680.00
23
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
0.00 0.00
activities
Repayment of borrowings 5,000,100.00
Cash paid for interest expenses and
distribution of dividends or profit
Other cash payments relating to
financing activities
Sub-total of cash outflows from
5,000,100.00 0.00
financing activities
Net cash flows from financing activities -5,000,100.00 0.00
IV. Effect of foreign exchange rate
-896.18
changes on cash and cash equivalents
V. Net increase in cash and cash
147,131.53 56,432.42
equivalents
Add: Opening balance of cash and
119,729.05 360,786.67
cash equivalents
VI. Closing balance of cash and cash
266,860.58 417,219.09
equivalents
7. Consolidated statement of changes in owners’ equity
Reporting period
Unit: RMB Yuan
Reporting period
Equity attributable to owners of the Company
Paid-up Total
Item Minority
capital Less: General owners’
Capital Specific Surplus Retaine interests
(or treasury risk Others equity
reserve reserve reserve d profit
share stock reserve
capital)
I. Balance at the end of the 220,901 72,315,3 125,929 -498,26 -284,039, -363,155,0
previous year ,184.00 47.06 ,834.48 1,874.87 572.78 82.11
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 220,901 72,315,3 125,929 -498,26 -284,039, -363,155,0
the year ,184.00 47.06 ,834.48 1,874.87 572.78 82.11
III. Increase/ decrease of
-6,427,2 67,663,7 -5,028,73 56,207,751
amount in the year (“-” means
72.93 58.14 3.78 .43
decrease)
67,663,7 -5,028,73 62,635,024
(I) Net profit
58.14 3.78 .36
(II) Other comprehensive
24
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
incomes
67,663,7 -5,028,73 62,635,024
Subtotal of (I) and (II)
58.14 3.78 .36
(III) Capital paid in and -6,427,2 -6,427,272.
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners 72.93 93
1. Capital paid in by
owners
2. Amounts of share-based
payments recognized in
owners’ equity
-6,427,2 -6,427,272.
3. Others
72.93 93
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to
owners (or shareholders)
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
220,901 65,888,0 125,929 -430,59 -289,068, -306,947,3
IV. Closing balance
,184.00 74.13 ,834.48 8,116.73 306.56 30.68
Last year
Unit: RMB Yuan
Last year
Equity attributable to owners of the Company
Paid-up Total
Item Minority
capital Less: General owners’
Capital Specific Surplus Retaine interests
(or treasury risk Others equity
reserve reserve reserve d profit
share stock reserve
capital)
I. Balance at the end of the 220,901 72,315,3 125,929 -364,83 -204,357, -150,048,4
previous year ,184.00 47.06 ,834.48 7,764.72 096.15 95.33
Add: retrospective
adjustments due to business
combinations under the same
control
Add: change of accounting 5,235,40 446,951.9 5,682,356.
25
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
policy 4.81 7 78
Correction of errors in -14,884, -14,884,90
previous periods 902.73 2.73
Other
II. Balance at the beginning of 220,901 72,315,3 125,929 -374,48 -203,910, -159,251,0
the year ,184.00 47.06 ,834.48 7,262.64 144.18 41.28
III. Increase/ decrease of
-123,77 -80,129,4 -203,904,0
amount in the year (“-” means
4,612.23 28.60 40.83
decrease)
-123,77 -80,129,4 -203,904,0
(I) Net profit
4,612.23 28.60 40.83
(II) Other comprehensive
incomes
-123,77 -80,129,4 -203,904,0
Subtotal of (I) and (II)
4,612.23 28.60 40.83
(III) Capital paid in and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners
1. Capital paid in by
owners
2. Amounts of share-based
payments recognized in
owners’ equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to
owners (or shareholders)
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
220,901 72,315,3 125,929 -498,26 -284,039, -363,155,0
IV. Closing balance
,184.00 47.06 ,834.48 1,874.87 572.78 82.11
8. Statement of changes in owners’ equity of the Company
Reporting period
Unit: RMB Yuan
26
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Reporting period
Paid-up
Item Less: General Total
capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 220,901,18 64,951,444 96,841,026 -356,392,3 26,301,325
previous year 4.00 .59 .39 29.08 .90
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 220,901,18 64,951,444 96,841,026 -356,392,3 26,301,325
the year 4.00 .59 .39 29.08 .90
III. Increase/ decrease of amount -6,427,272. 75,390,739 68,963,466
in the year (“-” means decrease) 93 .05 .12
75,390,739 75,390,739
(I) Net profit
.05 .05
(II) Other comprehensive
incomes
75,390,739 75,390,739
Subtotal of (I) and (II)
.05 .05
(III) Capital paid in and -6,427,272. -6,427,272.
0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners 93 93
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
-6,427,272. -6,427,272.
3. Others
93 93
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners
(or shareholders)
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
IV. Closing balance 220,901,18 58,524,171 96,841,026 -281,001,5 95,264,792
27
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
4.00 .66 .39 90.03 .02
Last year
Unit: RMB Yuan
Last year
Paid-up
Item Less: General Total
capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 220,901,18 64,951,444 96,841,026 -304,552,8 78,140,776
previous year 4.00 .59 .39 78.43 .55
Add: change of accounting 4,564,976.
policy 83
Correction of errors in -14,884,90
previous periods 2.73
Other
II. Balance at the beginning of 220,901,18 64,951,444 96,841,026 -314,872,8 67,820,850
the year 4.00 .59 .39 04.33 .65
III. Increase/ decrease of amount -41,519,52 -41,519,52
in the year (“-” means decrease) 4.75 4.75
-41,519,52 -41,519,52
(I) Net profit
4.75 4.75
(II) Other comprehensive
incomes
-41,519,52 -41,519,52
Subtotal of (I) and (II)
4.75 4.75
(III) Capital paid in and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners
(or shareholders)
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
28
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
(Ⅶ) Other
220,901,18 64,951,444 96,841,026 -356,392,3 26,301,325
IV. Closing balance
4.00 .59 .39 29.08 .90
（III）Notes to the financial statements
1. Changes in main accounting policies or estimates, correction of any significant accounting error and the
influenced amounts
（1）Change of accounting policies
Were the main accounting policies changed during the reporting period?
√Yes No
. Changes in accounting policies、accounting estimates
（1）Change in accounting policies
① Briefing of change in accountitng policies
A、The changed accounting policies
The Company changed the follow-up measurement for investment property from cost pattern into fair value
pattern upon the approval of 2012 5th provisional meeting of 6th board of directors
B、Reasons and basis for the change of accounting policies
The board of directors believes that the Company’s main investment property in construction process is located in
the CBD of Futian District,Shenzhen City, and all the buildings of the comoany that are leased out are all located
in the city centre of Guangzhou, Haikou or Shenzhen etc. There is an active trading market of real estate in the
locations of the each of the above mentioned investment property; and The company is able to obtain the market
prices of the identical or similar real estates and other relevant information from the trading market of each of the
above mentioned investment properties, so as to be able to scientifically and reasonablly estimate the fair value of
the investment properties. The fair value of all the above mentioned investment properties can be obtained in a
continuous and reliable way, the follow-up mearment pattern complies with the requirements for investment
property to adopt fair value pattern to make follow-up mearement ruled by . The company’s main investment property is used to lease, to adopt fair value pattern to make follow-up
measurement is internationally Internationally accepted method, for the reason to trulier and more objectively
reflect the Compamy’s value helps a wide range of investors to comprehend the Company’s operation and assets
value, and the Company to state its financial condition and management performance. Therefore, based on the
and , the
Company changed the follow-up measurement for investment property from cost pattern into fair value pattern
upon the approval of 2012 5th provisional meeting of 6th board of directors
C、Date of change of accounting policies
The date of change of accounting policies of current accounting period is Janurary 1st 2012 upon the approval of
2012 5th provisional meeting of 6th board of directors
D、Investment properties that are involved with the change of accounting policies
As at the end of 31st March 2012, the carrying amount of investment property before change of accounting
policies of the Company was RMB1,296,420,499.70, including RMB1,079,782.84 leased buildings and
RMB1,295,340,716.86 investment property in construction process.
E、Accounting policies before and after the change
a、Accounting policies before the change
The 2007 4th meeting of the 5th borad of directors approved the Company to use cost pattern to make the
29
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
follow-up measurement of investment property, according to expected useful life and net residual rate on
buildings and land-use right to calculate depreciation. The Company’s expected useful life, net residual rate and
annual depreciation rate of investment property as follow:
Expected
Categories Expected useful life Annual depreciation rate
residual rate
Buildings、structures 10% 30 years 3%
At the balance sheet date, the evaluation criteria should base on the lower value between costs and net realizable
value. When net realizable values are lower than costs, provision for impairment loss of property investment shall
be made. If the value of the impaired investment property recovered, the provided impairment loss in prior period
cannot be carry back.
b、Accounting policies after the change
As approved by the Company’s 2012 5th provisional meeting of the 6th board of directors, the company adopts
the fair value pattern to make the follow-up measure for Investment property
For the investment property measured through the fair value pattern, where there is no accrual depreciation or
amortization made for it, its book value shall be adjusted on the basis of its fair value on the date of the balance
sheet, and the difference between the fair value and its original book value shall be included in the current profits
and losses. If the fair value of or investment property in construction process is not able to be obtained in areliable
way but is expected to be obtained in be obtained in a continuous and reliable way, the Company measure the
investment property in cost partern, until the construction of the investment property in complete or the fair value
of the investment property is able to be obtained in a reliable way, which is ealier, the company then change to fair
value pattern to make the follow-up measurement.
Influence of changes of the accounting policies upon the Company
According to the , the financial statements for the accounting period
ended at Dec 31st 2011 shall be adjusted retroactively. The investment property in construction process, the IA
Mall is still not completed, therefore IA Mall project shall be measured with cost pattern before it reaches the
condition ready for its intended use. Retroactive adjustment shall be made for the influence of fair value change of
the company’s leased buildings; the above mentioned influence upon consolidated statement of changes in
shareholders’ equity and as at 31st Dec 2011 and consolidated income statement is presented as below:
A、Influence upon consolidated statement of changes in shareholders’ equity and as at 31st Dec 2011 and
consolidated income statement
（Unit：RMB Yuan）
Before change of After change of Adjusted
Items Adjusted amount
accounting policies accounting policies ratio %
Shared capital 220,901,184.00 220,901,184.00 - -
Capital reserve 72,315,347.06 72,315,347.06 - -
Surplus reserve 125,929,834.48 125,929,834.48 - -
Retained profit -503,497,279.68 -498,261,874.88 5,235,404.80 -1.04
Owner’s equity attribute to
-84,350,914.14 -79,115,509.34 5,235,404.80 -6.21
the parent company
Minority interests -284,486,524.75 -284,039,572.78 446,951.97 -0.16
Total owner’s equty -368,837,438.89 -363,155,082.12 5,682,356.77 -1.54
Net profit -203,904,040.83 -204,135,655.20 -231,614.37 0.11
Including：Net profit
attribute to the parent -123,774,612.23 -123,991,050.56 -216,438.33 0.17
company
30
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
Net Profit attribute to
-80,129,428.60 -80,144,604.64 -15,176.04 0.02
minority
B、Influence of changes of the accounting policies upon the Company’s financial statements of 2012 accounting
period
The main influence of change of accounting policies upon the Company’s financial statements of 2012 accounting
period is from the fair value change of IA Mall in construction process, after it starts operation this year. The
Company confirmed the operation strategy of merchants invitation to lease for IA Mall in 2007, Operation and
management team was formed specifically for the Merchants invitation, promotion, and management after it starts
operation for IA Mall project. As at March 31st 2012, the carrying amount of IA Mall in construction process was
RMB 1,295,000,000. The total cost of the completed construction of IA Mall was predicted to be
RMB1,550,000,000 by the Company. IA Mall now is not completed, there fore it is investment property still in
construction process, it does not meet the requirements of fair value pattern follow-up measurement currently, but
the fair value of IA Mall after construction complete is expected to be obtained in continous and reliable way,
according to the opinion of appraisal company, on the assumption that IA Mall starts operation with year 2012, the
fair value of IA Mall as at appraisal date 31st Dec 2012 was 5,970,000,000. Based on the above mentioned reasons,
on the assumption of fair value of real-estate market without significant fluctuation during 31st Mar 2012 to 31st
Dec 2012, if IA Mall project completes construction and leases out all the units, the change of accounting
policies will increase the deferred tax liabilities by RMB1,105,000,000 and increase Net profit of 2012 by
RMB3,315,000,000, including net profit attribute to parental company RMB1,989,000,000.
D、Predicted Influence of changes of the accounting policies upon the Company’s income tax
The predicted Influence of changes of the accounting policies upon the Company’s income tax after 2012
accounting period is mainly from depreciation and the fair value change of the IA Mall, which is still in
construction process, after it starts operation.
According to , for the investment property measured through the fair
value pattern, where there is no accrual depreciation or amortization made for it, its book value shall be adjusted
on the basis of its fair value on the date of the balance sheet, and the difference between the fair value and its
original book value shall be included in the current profits and losses.
According to the Tax Law, profit or loss from the fair value change is not accounted in the taxable income.
Meanwhile, depreciation or amortization shall be made according to the Tax Law to adjust in order to decrease
current taxable income. Therefore, the changes of accounting policies only have influence on the profit and loss,
and no influence on taxable income. The above mentioned difference from the discrepancy between carrying
amount and tax base of investment property, shall be treated by recognition of deferred tax and income tax
adjustment. Accoridng to the current fixed assets depreciation policy of property, after the operation of IA Mall,
around RMB 46,500,000 depreciation per year is allowed to be accounted as pre-tax expense, the Company can
decreaseincome tax expense by RMB 11,600,000 and increse deferred tax assets by RMB 11,600,000, until the
expected useful life of IA Mall ends. Meanwhile and accordingly, the profit and loss from fair value change of
current year is not accounted as taxable income and deferred tax liability is to be adjusted.
E、Influence of changes of the accounting policies upon the Company’s cash flow of 2012 accounting period
There is no influence of changes of the accounting policies upon the Company’s cash flow
（2）Change of accounting estimates
Were the main accounting estimates changed during the reporting period?
□ Yes √ No
（3）Correction of accounting errors
Was any accounting error made in previous periods discovered in the reporting period?
31
Abstract of the 2012 Semi-Annual Report of Shenzhen International Enterprise Co., Ltd.
□ Yes √ No
2. Reasons for any change of the consolidation scope
Compared with the previous year the new combined unit 1, for new set up in this period
Compared with the previous year the period decrease with unit 2, for disposal in this period.
3. If a non-standard audit report is issued, the Company should make relevant notes.
32
