Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
Chengde Dalu Co., Ltd.
The First Quarterly Report for 2012
(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 Yan Qizhong, 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
At the end of the report At the period-end of the Changes of
period last year increase/decrease (%)
Total assets (RMB) 222,143,456.45 219,022,670.81 1.42%
Owners’ equity attributable to
shareholders of the listed company -26,929,187.71 -23,882,038.57 -12.76%
(RMB)
Total share capital (Share) 706,320,000.00 706,320,000.00 0.00%
Net asset per share attributable to
shareholders of listed company -0.038 -0.034 -12.76%
(RMB/Share)
The same period of last Changes of
In the report period
year increase/decrease (%)
Total operating income (RMB) 263,950.00 0.00 0.00%
Net profit attributable to shareholders of
-3,047,149.14 -1,933,932.15 -57.56%
the listed company (RMB)
Net cash flow arising from operating
3,138,746.49 20,118.66 15,501.17%
activities (RMB)
Net cash flow arising from operating
0.004 0.00003 13,233.33%
activities per share (RMB/Share)
Basic earnings per share (RMB/Share) -0.0043 -0.003 -43.33%
Diluted earnings per share (RMB/Share) -0.0043 -0.003 -43.33%
Weighted average return on equity (%) 0.00% 0.00% 0.00%
Weighted average return on equity after
deducting non-recurring gains and losses 0.00% 0.00% 0.00%
(%)
Item of non-recurring gains/losses
√Applicable □Inapplicable
Unit: RMB
Amount from year-begin Remarks (If
Items of non-recurring gains and losses
to period-end applicable)
Other non-operating income and expenditure except
-54,412.17
for the aforementioned items
Total -54,412.17 -
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
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
22,448
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) 60,340,849
shares
LIMITED
Domestically listed foreign
Shanghai H.K. Wangguo Securities 26,978,492
shares
Domestically listed foreign
Zhou Xiaomin 9,654,111
shares
Domestically listed foreign
Yu Sanxi 8,792,000
shares
Domestically listed foreign
Wang Wensheng 7,258,007
shares
Domestically listed foreign
Peng Wei 2,978,525
shares
Domestically listed foreign
Zhao Ziying 2,821,916
shares
Domestically listed foreign
Liu Tingyu 2,743,764
shares
Domestically listed foreign
Li Siquan 1,726,133
shares
Domestically listed foreign
Li Youhe 1,582,900
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
Monetary fund: amount at period-end decrease 3,065,734.31 yuan over that of period-begin with a
55.56% down. Mainly due to the construction amount paid for development of real estate project by
subsidiary;
Inventory: amount at period-end increase 5,451,500.00 yuan over that of period-begin with a
13.73% up. Mainly because real estate project of the subsidiary has not completed till end of this
period;
Account received in advance: amount at period-end increase 12,471,037.08 yuan over that of
period-begin with a 41.53% up. Mainly because house sales in advance of real estate project
increased;
Net profit attributable to shareholders of listed company: a y-o-y down of 1,113,216.99 yuan with a
57.56% down. Mainly because vary expenses are increased in this period;
Net cash flow arising from operation activities: a y-o-y growth of 3,118,627.83 yuan with a
15,501.17% up. Mainly because real estate project of the subsidiary has sold in advance;
3.2 Analysis and explanation of significant events and their influence and solutions
3.2.1 Particular about Qualified Opinion
√Applicable □Inapplicable
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
In 2011, the Crowe Horwath CPA (special general partnership) carried out qualified auditor’s report
with paragraph of emphasized matters for the Company.
Emphasis events:
Attention for user of financial statement:
1. As stated in 1(1) ③ of Note IV., Chengde Xingye Papermaking Co., Ltd., was established jointly
by Dalu Co., Ltd. and H.K Century Win International Holding Ltd in 2001 with registered capital of
USD 250 million and paid-in capital of USD100 million. Capital investment from shareholders
occupied 40% of registered capital, consisting USD 75 million (a 75% in equity) invested by the
Company and USD 25 million (a 25% in equity) invested by H.K Century Win International Holding
Ltd. On 28 October 2002, regulated by “Reply of Capital Increase for Joint Venture of Chengde
Xingye Papermaking Co., ltd.” WJMZ EH[2001] No. 969 issued by Ministry of Foreign Trade &
Economic Cooperation, PRC (former Ministry of Commerce), register capital will increase to USD
250 million from USD 100 million, the capital increased fro investment should paid-up within 3
years since changes of the business license, by means regulated in contract and article of association,
agreed by tow parties. Increase register capital of Chengde Xingye Papermaking Co., ltd are not paid
in total by Dalu Co., Ltd. and H.K Century Win International Holding Ltd on time.
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 7 (3), Li Rui brings a suit against Chengde Rongyida Real Estate Development
Co., Ltd, subsidiary of Dalu Company and Chengda Dalu Co., Ltd. for infringement. And claim for
money consideration of 15 million yuan, the case open a court session dated 20 April 2012 and no
ruling results till end of 22 April 2012.
4. Ended as 31 December 2011, owners’ equity attributable to parent company for Dalu Co., Ltd.
amounting as -23,882,038.57 yuan; no main business income obtained for year of 2010 and 2011with
uncertainty for sustainable operation ability.
The statement of the above paragraphs has no effect on the expressed audit opinion.
The board of directors thought that, the proceedings involved in unqualified opinions with paragraph
of emphasized matters provided by Crowe Horwath CPA (special general partnership) 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.
Concerning the above said lawsuits, the Company will response to suits proactively and released
relevant progress of lawsuits on time.
The lawsuits will be solved one by one while the Company back to right track gradually.
3.2.2 Particular about fund offered to shareholder or its related parties by the Company and
external guarantee with procedure violation
□Applicable √Inapplicable
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
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
3.5.2 Registration form for receiving research, communication and interview in the report
period
Type of Reception Contents discussed and
Date Place Method
reception object materials supplied
Securities Telephone
Subsidy of the Company,
2012-01-06 Department of communicatio Individual Investors
no material provided
the Company n
Securities Telephone Performance in 2011 and
2012-01-18 Department of communicatio Individual Investors provided the prediction
the Company n notice on performance
Securities Telephone Current status of the
2012-02-19 Department of communicatio Individual Investors Company, no material
the Company n provided
Securities Telephone Progress of lawsuit of the
2012-03-23 Department of communicatio Individual Investors Company, no material
the Company n provided
Securities Telephone Suspension of the
2012-03-30 Department of communicatio Individual Investors Company, no material
the Company n 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, 2012 Unit: RMB
Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 2,451,957.98 4,019.80 5,517,692.29 4,019.80
Settlement provisions
Capital lent
Transaction finance
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
asset
Notes receivable
Accounts receivable
Accounts paid in
21,062,496.25 20,084,632.25 21,059,096.25 20,084,632.25
advance
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 34,544,427.80 560,037.07 33,632,142.25 350,389.52
Purchase restituted
finance asset
Inventories 45,150,300.27 39,698,800.27
Non-current asset due
within one year
Other current assets 1,093,527.39 1,093,527.39
Total current assets 104,302,709.69 20,648,689.12 101,001,258.45 20,439,041.57
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 59,366,716.28 60,092,006.51
Construction in progress 6,721,818.00 6,721,818.00
Engineering material
Disposal of fixed asset
Productive biological
asset
Oil and gas asset
Intangible assets 24,046,903.88 24,202,279.25
Expense on Research
and Development
Goodwill
Long-term expenses to
356,640.00 356,640.00
be apportioned
Deferred income tax
asset
Other non-current asset 25,132,938.95 24,432,938.95
Total non-current asset 117,840,746.76 58,925,880.26 118,021,412.36 58,925,880.26
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
Total assets 222,143,456.45 79,574,569.38 219,022,670.81 79,364,921.83
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 131,175.82 218,802.27 231,175.82 218,802.27
Accounts received in
42,499,650.10 30,028,613.02
advance
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 6,347,882.20 129,639.20 6,707,882.20 489,639.20
Taxes payable 69,316,914.62 -34,675.85 69,588,226.39 169,855.54
Interest payable
Dividend payable
Other accounts payable 111,295,122.36 102,732,936.89 116,572,501.13 101,813,353.28
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 230,013,007.01 103,468,964.42 223,550,660.47 103,113,912.20
Non-current liabilities:
Long-term loans 6,801,600.00 6,801,600.00
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 liabilities 17,399,600.03 98,000.03 17,399,600.03 98,000.03
Total liabilities 247,412,607.04 103,566,964.45 240,950,260.50 103,211,912.23
Owner’s equity (or
shareholders’ equity):
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
Paid-in capital (or share
706,320,000.00 706,320,000.00 706,320,000.00 706,320,000.00
capital)
Capital public reserve 450,765,443.10 449,365,886.69 450,765,443.10 449,365,886.69
Less: Inventory shares
Reasonable reserve
Surplus public reserve 76,791,550.17 76,791,550.17 76,791,550.17 76,791,550.17
Provision of general risk
Retained profit -1,260,806,180.98 -1,256,469,831.93 -1,257,759,031.84 -1,256,324,427.26
Balance difference of
foreign currency translation
Total owner’s equity
attributable to parent -26,929,187.71 -23,992,395.07 -23,882,038.57 -23,846,990.40
company
Minority interests 1,660,037.12 1,954,448.88
Total owner’s equity -25,269,150.59 -23,992,395.07 -21,927,589.69 -23,846,990.40
Total liabilities and owner’s
222,143,456.45 79,574,569.38 219,022,670.81 79,364,921.83
equity
4.2 Profit statement
Prepared by Chengde Dalu Co., Ltd. Jan.-Mar. 2012 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 263,950.00 0.00 0.00 0.00
Including: Operating income 263,950.00 0.00 0.00 0.00
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 3,524,961.23 145,404.67 2,183,903.58 146,861.28
Including: Operating cost 0.00 0.00 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 extras 41,994.50
Sales expenses
Administration
3,239,103.74 145,389.17 2,182,908.24 145,861.28
expenses
Financial expenses 243,862.99 15.50 995.34
Losses of devaluation of
asset
Add: Changing income
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
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 (Loss
-3,261,011.23 -145,404.67 -2,183,903.58 -146,861.28
is listed with “-”)
Add: Non-operating
-4,448.77 -4,448.77
income
Less: Non-operating
54,412.17 -2,044.00 -2,044.00
expense
Including: Disposal loss
of non-current asset
IV. Total Profit (Loss is
-3,315,423.40 -145,404.67 -2,186,308.35 -149,266.05
listed with “-”)
Less: Income tax 26,137.50
V. Net profit (Net loss is
-3,341,560.90 -145,404.67 -2,186,308.35 -149,266.05
listed with “-”)
Net profit attributable to
owner’s equity of parent -3,047,149.14 -145,404.67 -1,933,932.15 -149,266.05
company
Minority shareholders’
-294,411.76 -252,376.20
gains and losses
VI. Earnings per share
i. Basic earnings per share -0.0043 -0.003
ii. Diluted earnings per share -0.0043 -0.003
VII. Other consolidated
income
VIII. Total consolidated
-3,341,560.90 -145,404.67 -2,186,308.35 -149,266.05
income
Total consolidated income
attributable to owners of -3,047,149.14 -145,404.67 -1,933,932.15 -149,266.05
parent company
Total consolidated income
attributable to minority -294,411.76 -252,376.20
shareholders
Concerning the enterprise consolidation under common control occurred in the period; the mergered
party realized net profit before consolidation amounting to RMB00.00.
4.3 Cash flow statement
Prepared by Chengde Dalu Co., Ltd. Jan.-Mar. 2012 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 12,734,987.08
providing labor services
Net increase of
customer deposit and
interbank deposit
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
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 15,514.80 167,206.16 170,365.26 170,360.60
activities
Subtotal of cash inflow
arising from operating 12,750,501.88 167,206.16 170,365.26 170,360.60
activities
Cash paid for
purchasing commodities and 5,551,500.00
receiving labor service
Net increase of
customer loans and advances
Net increase of deposits
in central bank and interbank
Cash paid for original
insurance contract
compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff
504,000.00 69,200.00 69,200.00
and workers
Taxes paid 1,899,073.50 50.00
Other cash paid
concerning operating 1,657,181.89 167,156.16 81,046.60 81,046.60
activities
Subtotal of cash outflow
arising from operating 9,611,755.39 167,206.16 150,246.60 150,246.60
activities
Net cash flows arising
3,138,746.49 0.00 20,118.66 20,114.00
from operating activities
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
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
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 700,000.00
activities
Subtotal of cash outflow
700,000.00
from investing activities
Net cash flows arising
-700,000.00
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 distributing or 2,414,480.80
interest paying
Including: Dividend and
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Chengde Dalu Co., Ltd. First Quarterly Report 2012(Full Text)
profit of minority
shareholder paid by
subsidiaries
Other cash paid
concerning financing 3,090,000.00
activities
Subtotal of cash outflow
5,504,480.80
from financing activities
Net cash flows arising
-5,504,480.80
from financing activities
IV. Influence on cash and
cash equivalents due to
fluctuation in exchange rate
V. Net increase of cash and
-3,065,734.31 0.00 20,118.66 20,114.00
cash equivalents
Add: Balance of cash
and cash equivalents at the 5,517,692.29 4,019.80 58,256.11 16,900.44
period -begin
VI. Balance of cash and cash
2,451,957.98 4,019.80 78,374.77 37,014.44
equivalents at the period -end
4.4 Auditor’ report
Auditor’s opinions: Un-audited
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