Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
Chengde Dalu Co., Ltd.
The First Quarterly Report for 2011
(Full Text)
§1. Important Notes
1.1 Board of Directors and the Supervisory Committee of Chengde Dalu Co., Ltd. (hereinafter
referred to as the Company) and its directors, supervisors and senior executives hereby confirm that
there are no any fictitious statements, misleading statements, or important omissions carried in this
report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
1.2 The Financial Report for the First Quarterly Report of the Company has not been audited by
CPAs.
1.3 Chen Rong, Principal of the Company; Wang Ansheng, Person in Charge of Accounting Works;
and Liu Fengguo, Person in Charge of Accounting Organ (Accounting Supervisor) hereby confirm
that the Financial Report of the First Quarterly Report is true and complete.
§2. Company Profile
2.1 Main accounting highlights and financial indexes
Unit: RMB
Changes of
At the end of the At the period-end of
increase/decrease
report period the last year
(%)
Total assets (RMB) 192,656,526.06 199,976,147.64 -3.66%
Owners’ equity attributable to
shareholders of the listed company -28,344,634.82 -27,525,241.03 2.98%
(RMB)
Share capital (Share) 706,320,000.00 706,320,000.00 0.00%
Net asset per share attributable to
shareholders of listed company -0.04 -0.04 0.00%
(RMB/Share)
Changes of
The same period of
In the report period increase/decrease
last year
(%)
Total operating income (RMB) 21,250.00 0.00 0.00%
Net profit attributable to
shareholders of the listed company -819,393.79 -1,933,932.15 -57.63%
(RMB)
Net cash flow arising from operating
-5,876,656.54 20,118.66 -29,309.98%
activities (RMB)
Net cash flow arising from operating
-0.01 0.00 0.00%
activities per share (RMB/Share)
Basic earnings per share
-0.001 -0.003 -66.67%
(RMB/Share)
Diluted earnings per share
-0.001 -0.003 -66.67%
(RMB/Share)
Weighted average return on equity
- - -
(%)
Weighted average return on equity
after deducting non-recurring gains - - -
and losses (%)
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
Items of non-recurring gains and losses
□Applicable √ Inapplicable
2.2 Total number of shareholders at the end of the report period and shares held by the top
ten shareholders of circulation share
Unit: Share
Total number of shareholders
23,114
at the end of report period
Particulars about shares held by the top ten shareholders of circulation shares
Number of circulation shares
Shareholders’ name Type of shares
held at the period-end
GUOTAI JUNAN
Domestically listed foreign
SECURITIES(HONGKONG)LIMIT 28,537,090
shares
ED
Domestically listed foreign
Chen Yan 17,183,200
shares
Domestically listed foreign
Xu Jiang 16,556,900
shares
Domestically listed foreign
Zhou Haihong 15,696,200
shares
Domestically listed foreign
Qian Zhenlin 13,320,000
shares
Domestically listed foreign
Li Tianyun 10,773,290
shares
Domestically listed foreign
Wang Wensheng 7,258,007
shares
Domestically listed foreign
Peng Wei 2,978,525
shares
Domestically listed foreign
Zhao Ziying 2,600,416
shares
Domestically listed foreign
NORGES BANG 2,516,195
shares
§3. Significant Events
3.1 Particulars about material changes in items of main accounting statement and financial
index, and explanations of reasons
□Applicable √Inapplicable
3.2 Analysis and explanation of significant events and their influence and solutions
3.2.1 Particular about Qualified Opinion
√Applicable □Inapplicable
Attention for user of financial statement:
1. As stated in Note 4, I (1), Chengde Xingye Paper Manufacture Co., Ltd was a joint venture of Dalu
Holding Company and (HK) Zhanxi International Group Co., Ltd with registry capital USD 250
million and paid capital USD 100 million. On Oct. 28 of 2002, Ministry of External Trade and
Economic Cooperation (precursor of Department of Commerce) of People Republic of China ruled in
the WJZMEH [2001] No. 969 the Reply to Capital Increase on Joint Venture Chengde Xingye Paper
Manufacture Co., Ltd that registry capital increased from USD 100 million to USD 250 million,
newly increased registry capital should be paid up within 3 years since the day of changing business
license in means ruled in contract and term of Article of Association by both parties of joint venture.
Chengde Xingye Paper Manufacture Co., Ltd didn’t pay enough for registry capital in due time
according to rules.
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
Confirmed by the Companies Registry of Hong Kong SAR Government, Century Win International
Holding Co., Ltd declared to dismiss on 20 May 2005. According to the ruling of Hebei senior
People's Court (2009) Ji Xing Er Zhong Zi 44 of 23 April 2009, Chengde Xingye Papermaking Co.,
Ltd was adjudicated a deceptive foreign- invested enterprise which was established by the original
shareholder of the Company Wangsuxian in the name of Century Win International Holding Co., Ltd.
2. As stated in Note 5 (6), previous registry capital of associated enterprise of Dalu Holding
Company Chengde Dahua Paper Industry Co., Ltd was USD 5 million which was increased to 6.364
billion yen after equity transfer and capital increase. The increased part wasn’t approved by China
Certified Public Accountant. Owing that Chengde Dahua Paper Industry Co., Ltd didn’t submit 2007
annual inspection materials of industry and commerce, its business license had been revoked by
CGSCZ (2009) No. 75 administrative penalty paper issued by Chengde Industry and Commerce
Administration Bureau on Apr. 28 of 2009.
3. As stated in Note 10, since Dalu Holding Company completed bankruptcy and reorganization in
Apr. of 2009, all the subsidiaries hadn’t resumed operation except Chengde Rongyida Real Estate
Development Co., Ltd. Real Estate project of Chengde Rongyida Real Estate Development Co., Ltd,
namely Dalu Ganyuan Subdistrict with land area 30.7443 acres. Till Dec. 31 of 2010, the No.
130821201001057 permit for construction land planning has been done. And the project still hasn’t
been started. In 2010 Dalu Holding Company still didn’t get main business income. And the constant
operation ability was uncertain.
The statement of the above paragraphs has no effect on the expressed audit opinion.
To the proceedings involved in qualified opinions with paragraph of emphasized matters provided by
accountants, the board of directors of the Company made the following explanations:
The board of directors thought that, the proceedings involved in unqualified opinions with paragraph
of emphasized matters provided by Beijing Yongtuo Certified Public Accountants existed which were
problems left in history, and could not have substantial influences on production and operation of the
Company. The board of directors attached importance to the emphasized issues and qualified matters
in the audit report, and is communicating with related department at present on negotiating the
solutions. We believed that the Company would gradually go into the right path, and at the same time
the above matters involved would be resolved soon.
3.2.2 Particular about fund offered to shareholder or its related parties by the Company and
external guarantee with procedure violation
□Applicable √Inapplicable
3.2.3 Particular about the significant contract of routine operation signed and implemented
□Applicable √Inapplicable
3.2.4 Other
□Applicable √Inapplicable
3.3 Implementations of commitments by the Company, shareholders and actual controller
Commitments make within the report period or persisted to the period by listed company and its
director, supervisor and senior executives, shareholder with over 5 percent shares held and its actual
controller
□Applicable √Inapplicable
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next
report period to be loss probably or the warning of its material change compared with the
corresponding period of the last year and explanation of reason
□Applicable √Inapplicable
3.5 Other significant events which need explanations
3.5.1 Particulars about securities investment
□Applicable √Inapplicable
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
3.5.2 Registration form for receiving research, communication and interview in the report
period
The received Contents discussed and
Date Place Way
parties materials supplied
Particular about shareholders’
Securities
Telephone general meeting and provided
2011-01-13 Department of the Investors
communication the resolution notice of the
Company
shareholders’ general meeting
Securities Performance in 2010 and
Telephone
2011-01-26 Department of the Investors provided the prediction notice
communication
Company on performance
Securities Current status of the
Telephone
2011-02-19 Department of the Investors Company, no information
communication
Company provided
Securities Particular about the
Telephone
2011-03-16 Department of the Investors construction projects and
communication
Company without information provided
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about derivatives investment held at the end of report period
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by Chengde Dalu Co., Ltd. March 31, 2011 Unit: RMB
Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 1,562,735.30 54,247.70 9,723,008.25 37,197.70
Settlement
provisions
Capital lent
Transaction finance
asset
Notes receivable
Accounts receivable
Accounts paid in
20,084,632.25 20,084,632.25 20,084,632.25 20,084,632.25
advance
Insurance receivable
Reinsurance
receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 30,811,842.44 284,888.14 30,485,301.52 278,347.22
Purchase restituted
finance asset
Inventories 18,607,190.41 17,742,081.41
Non-current asset
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
due within one year
Other current assets 1,093,527.39 1,093,527.39
Total current assets 72,159,927.79 20,423,768.09 79,128,550.82 20,400,177.17
Non-current assets:
Granted loans and
advances
Finance asset
available for sales
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
2,215,729.65 58,925,880.26 2,215,729.65 58,925,880.26
investment
Investment property
Fixed assets 62,457,706.31 62,653,329.49
Construction in
6,721,818.00 6,721,818.00
progress
Engineering
material
Disposal of fixed
asset
Productive
biological asset
Oil and gas asset
Intangible assets 24,668,405.36 24,823,780.73
Expense on
Research and
Development
Goodwill
Long-term expenses
to be apportioned
Deferred income tax
asset
Other non-current
24,432,938.95 24,432,938.95
asset
Total non-current asset 120,496,598.27 58,925,880.26 120,847,596.82 58,925,880.26
Total assets 192,656,526.06 79,349,648.35 199,976,147.64 79,349,648.35
Current liabilities:
Short-term loans 422,261.91 422,261.91 422,261.91 422,261.91
Loan from central
bank
Absorbing deposit
and interbank deposit
Capital borrowed
Transaction
financial liabilities
Notes payable
Accounts payable 231,075.82 218,802.27 231,075.82 218,802.27
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
Accounts received
in advance
Selling financial
asset of repurchase
Commission charge
and commission payable
Wage payable 6,355,286.60 257,800.00 6,395,486.60 277,000.00
Taxes payable 68,652,093.52 -68,258.02 72,070,571.83 -62,298.33
Interest payable
Dividend payable
Other accounts
125,650,199.67 117,770,768.23 128,516,654.41 117,654,080.62
payable
Reinsurance
payables
Insurance contract
reserve
Security trading of
agency
Security sales of
agency
Non-current
liabilities due within 1
year
Other current
liabilities
Total current liabilities 201,310,917.52 118,601,374.39 207,636,050.57 118,509,846.47
Non-current liabilities:
Long-term loans 6,398,000.00 6,398,000.00
Bonds payable
Long-term account
payable
Special accounts
10,598,000.03 98,000.03 10,598,000.03 98,000.03
payable
Projected liabilities
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current
16,996,000.03 98,000.03 16,996,000.03 98,000.03
liabilities
Total liabilities 218,306,917.55 118,699,374.42 224,632,050.60 118,607,846.50
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or
706,320,000.00 706,320,000.00 706,320,000.00 706,320,000.00
share capital)
Capital public
450,765,443.10 449,365,886.69 450,765,443.10 449,365,886.69
reserve
Less: Inventory
shares
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
Reasonable reserve
Surplus public
76,791,550.17 76,791,550.17 76,791,550.17 76,791,550.17
reserve
Provision of general
risk
Retained profit -1,262,221,628.09 -1,271,827,162.93 -1,261,402,234.30 -1,271,759,225.93
Balance difference
of foreign currency
translation
Total owner’s equity
attributable to parent -28,344,634.82 -39,349,726.07 -27,525,241.03 -39,281,789.07
company
Minority interests 2,694,243.33 2,869,338.07
Total owner’s equity -25,650,391.49 -39,349,726.07 -24,655,902.96 -39,281,789.07
Total liabilities and
192,656,526.06 79,349,648.35 199,976,147.64 79,326,057..43
owner’s equity
4.2 Profit statement
Prepared by Chengde Dalu Co., Ltd. Jan.-Mar. 2011 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 21,250.00 0.00 0.00
Including: Operating
0.00 0.00 0.00 0.00
income
Interest income
Insurance gained
Commission charge
and commission income
II. Total operating cost 1,014,941.65 67,937.00 2,183,903.58 146,861.28
Including: Operating cost 0.00 0.00
Interest expense
Commission charge
and commission expense
Cash surrender
value
Net amount of
expense of compensation
Net amount of
withdrawal of insurance
contract reserve
Bonus expense of
guarantee slip
Reinsurance
expense
Operating tax and
2,039.97
extras
Sales expenses
Administration
1,005,457.04 67,937.00 2,182,908.24 145,861.28
expenses
Financial expenses 7,444.64 995.34 1,000.00
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
Losses of
devaluation of asset
Add: Changing
income of fair value(Loss
is listed with “-”)
Investment income
(Loss is listed with “-”)
Including:
Investment income on
affiliated company and
joint venture
Exchange income
(Loss is listed with “-”)
III. Operating profit
-993,691.65 -67,937.00 -2,183,903.58 -146,861.28
(Loss is listed with “-”)
Add: Non-operating
-4,448.77 -4,448.77
income
Less: Non-operating
-2,044.00 -2,044.00
expense
Including: Disposal
loss of non-current asset
IV. Total Profit (Loss is
-993,691.65 -67,937.00 -2,186,308.35 -149,266.05
listed with “-”)
Less: Income tax 796.88 0.00
V. Net profit (Net loss is
-994,488.53 -67,937.00 -2,186,308.35 -149,266.05
listed with “-”)
Net profit
attributable to owner’s -819,393.79 -67,937.00 -1,933,932.15 -149,266.05
equity of parent company
Minority
shareholders’ gains and -175,094.74 -252,376.20
losses
VI. Earnings per share
i. Basic earnings per
-0.001 -0.003
share
ii. Diluted earnings per
-0.001 -0.003
share
VII. Other consolidated
income
VIII. Total consolidated
-994,488.53 -67,937.00 -2,186,308.35 -149,266.05
income
Total consolidated
income attributable to
-819,393.79 -67,937.00 -1,933,932.15 -149,266.05
owners of parent
company
Total consolidated
income attributable to -175,094.74 -252,376.20
minority shareholders
Concerning the enterprise consolidation under common control occurred in the period; the mergered
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
party realized net profit before consolidation amounting to RMB00.00.
4.3 Cash flow statement
Prepared by Chengde Dalu Co., Ltd. Jan.-Mar. 2011 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising
from operating activities:
Cash received from
selling commodities and
providing labor services
Net increase of
customer deposit and
interbank deposit
Net increase of loan
from central bank
Net increase of
capital borrowed from
other financial institution
Cash received from
original insurance
contract fee
Net cash received
from reinsurance
business
Net increase of
insured savings and
investment
Net increase of
disposal of transaction
financial asset
Cash received from
interest, commission
charge and commission
Net increase of
capital borrowed
Net increase of
returned business capital
Write-back of tax
received
Other cash received
concerning operating 40,654.13 241,880.00 170,365.26 170,360.60
activities
Subtotal of cash
inflow arising from 40,654.13 241,880.00 170,365.26 170,360.60
operating activities
Cash paid for
purchasing commodities
865,109.00
and receiving labor
service
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
Net increase of
customer loans and
advances
Net increase of
deposits in central bank
and interbank
Cash paid for
original insurance
contract compensation
Cash paid for
interest, commission
charge and commission
Cash paid for bonus
of guarantee slip
Cash paid to/for
148,900.00 54,800.00 69,200.00 69,200.00
staff and workers
Taxes paid 3,415,355.57
Other cash paid
concerning operating 1,487,946.10 170,030.00 81,046.60 81,046.60
activities
Subtotal of cash
outflow arising from 5,917,310.67 224,830.00 150,246.60 150,246.60
operating activities
Net cash flows
arising from operating -5,876,656.54 17,050.00 20,118.66 20,114.00
activities
II. Cash flows arising
from investing activities:
Cash received from
recovering investment
Cash received from
investment income
Net cash received
from disposal of fixed,
intangible and other
long-term assets
Net cash received
from disposal of
subsidiaries and other
units
Other cash received
concerning investing
activities
Subtotal of cash
inflow from investing
activities
Cash paid for
purchasing fixed,
intangible and other
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
long-term assets
Cash paid for
investment
Net increase of
mortgaged loans
Net cash received
from subsidiaries and
other units
Other cash paid
concerning investing
activities
Subtotal of cash
outflow from investing
activities
Net cash flows
arising from investing
activities
III. Cash flows arising
from financing activities
Cash received from
absorbing investment
Including: Cash
received from absorbing
minority shareholders’
investment by
subsidiaries
Cash received from
loans
Cash received from
issuing bonds
Other cash received
concerning financing
activities
Subtotal of cash
inflow from financing
activities
Cash paid for
settling debts
Cash paid for
dividend and profit
2,283,616.41
distributing or interest
paying
Including: Dividend
and profit of minority
shareholder paid by
subsidiaries
Other cash paid
concerning financing
activities
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Chengde Dalu Co., Ltd. First Quarterly Report 2011 (Full Text)
Subtotal of cash
outflow from financing 2,283,616.41
activities
Net cash flows
arising from financing -2,283,616.41
activities
IV. Influence on cash and
cash equivalents due to
fluctuation in exchange
rate
V. Net increase of cash
-8,160,272.95 17,050.00 20,118.66 20,114.00
and cash equivalents
Add: Balance of
cash and cash equivalents 9,723,008.25 37,197.70
at the period -begin
VI. Balance of cash and
cash equivalents at the 1,562,735.30 54,247.70 20,118.66 20,114.00
period -end
4.4 Auditor’ report
Auditor’s opinions: Un-audited
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