Guangdong Rieys Group Company Ltd
The Third Quarterly Report 2009
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee as well as directors,
supervisors and senior management of Guangdong Rieys Group Company Ltd
(hereinafter referred to as “the Company”) warrant that this report does not contain
any false or misleading statements or omit any material facts and shoulder
individually and jointly responsibility for true, accurate and complete of contents.
1.2 Naught
1.3 All other directors attended the board meeting on review and examination of the
third quarterly report except the following directors.
Name of absent directors Post Reason Name of trustee
Chen Honghai Director Due to work Chen Hongcheng
1.4 The Financial Report of the Third Quarterly Report has not been audited.
1.5 Chen Hongcheng, Person in charge of the Company, and Chen Peixia, Chief
Financial Officer as well as person in charge of accounting organ, hereby declare that
they would guarantee the authenticity and completeness of the Financial Report in this
Quarterly Report.
§2. Company Profile
2.1 Main accounting data and financial indices
Unit: RMB Yuan
30 Sep. 2009 31 Dec. 2008
Increase/decrease
(%)
Total assets (Yuan) 602,282,961.00 626,364,356.00 -3.84%
Owner’s equity attributable to shareholders of
listed company (Yuan)
317,161,628.00 345,621,317.00 -8.23%
Share capital (Share) 318,600,000.00 318,600,000.00 0.00%
Net assets per share attributable to shareholders
of listed company (Yuan/share)
1.00 1.08 -7.41%
Jul.-Sep. 2009
Increase/decrease
year-on-year (%)
Jan.-Sep.
2009
Increase/decrease
year-on-year (%)
Operating revenue (Yuan) 31,211,579.00 -39.97%
105,136,6
59.00
-28.22%
Net profit attributable to shareholders of listed
company (Yuan)
-7,998,119.00 -38.51%
-28,459,68
9.00
-35.67%
Net cash flow arising from operating activities
(Yuan)
- -
-503,185.0
0
-99.88%
Net cash flow per share arising from operating - - 0.00 -98.88%activities (Yuan/share)
Basic earnings per share (Yuan/share) -0.03 -25.00% -0.09 -35.71%
Diluted earnings per share (Yuan/share) -0.03 -25.00% -0.09 -35.71%
Return on equity (%) -2.52% -23.12% -8.97% -20.66%
Return on equity after deducting non-recurring
gains and losses (%)
-2.52% -23.12% -9.33% -20.66%
Items of non-recurring gains and losses
Amount from the year-begin to
the end of report period
Note
Gains and losses from disposal of non-current assets -287,225.61
Gains and losses from contingencies with no relationship with normal
operating business
1,847,416.59 Share transfer
Other non-operating income and expense except the aforesaid items -428,064.97
Total 1,132,126.01 -
2.2 Total number of shareholders at the end of the report period and statement on
shares held by the top ten shareholders with shares not subject to trading moratorium
Unit: share
Total number of shareholders 17,684
The top ten shareholders holding shares not subject to trading moratorium
Full name of shareholders
Number of shares not subject to trading
moratorium held at the period-end
Type of share
Shanghai Hong Kong Wanguo Securities 1,460,000 Domestically listed foreign share
NGAI KWOK PAN 1,093,900 Domestically listed foreign share
CHEN ZE XIONG 986,800 Domestically listed foreign share
CHEN MING XIONG 971,120 Domestically listed foreign share
WANG DE BO 888,888 Domestically listed foreign share
ZHOU ZHENG ZHONG 882,900 Domestically listed foreign share
LUO HUI 842,800 Domestically listed foreign share
CHEN ZE BING 807,021 Domestically listed foreign share
LIU YAN CHANG 754,320 Domestically listed foreign share
ZHOU XIAO QUN 635,800 Domestically listed foreign share
§3. Significant events
3.1 Particular about large-margin change in main item of accounting statement and
financial index and reason for change
√Applicable □Inapplicable
Balance sheet
Balance at
period-end
Balance at
year-begin
Increase/decr
ease (%)
Explanation
Accounts receivable 40,051,717 76,757,256 -47.82
Decline of selling and Calling back fund of
goods
Account paid in advance
107,664,08
6
78,781,149 36.66
Payment for purchase of good in advance
increasedAccounts payable 3,567,370 7,015,488 -49.15
Credit on purchase of goods decreased and
cash purchase increased.
Interest payable 38,287,919 24,640,579 55.39 Interest payable increased
Other accounts payable 6,960,236 11,324,383 -38.54 Repay of borrowings
Income statement
Amount in
current
period
Amount in
the last
period
Increase/decrea
se proportion
(%)
Explanation
Operating cost 75,368,610 110,745,882 -31.94
Income decreased and cost decreased
accordingly
Gains and losses
from investment
1,847,417 0
Selling subsidiary companies whose net assets
was negative.
Non-operating
expenditure
969,928 2,310,994 -58.03
Non-operating expenditure like donation
decreased
3.2 The progress of significant events and its influence, as well as the analysis and
explanation on resolving proposal
□Applicable √Inapplicable
3.3 The fulfillment of the commitment made by the Company, shareholders and the
actual controller
□Applicable √Inapplicable
3.4 Warnings of possible loss or great change of the accumulated net profit made
during the period from the beginning of the year to the end of the next report period
compared with the same period of the last year according to prediction, as well as
explanations on the reasons
√Applicable □Inapplicable
Performance forecast Deficit
From year-begin to the end of the
next report period
Same period of last year Increase/decrease
（
%
）
Estimated accumulative net
profit (RMB’0000)
-4,000.00 -10,635.00 Decline -62%
Basic earnings per share
(Yuan/share)
-0.13 -0.33 Decline -62%
Notes to performance forecast
Influenced by global financial crisis, textile clothing market was still recession since this
year, export orders didn’t recovered rapidly, price of order taken was low, consumption
confidence in domestic market was lacked and main business didn’t rise obviously.
Although the Company adopted many measures to reduce burden and expenses, call back
cash, basic condition has no large change. Financial expense and administrative expense
decreased year-on-year, but the base was large, which caused deficit.
3.5 Other significant events need to be explained
None3.5.1 Interviews, communications and visits in the reporting period
Reception time Reception place Reception manner Reception object Contents discussed and information offered
1 Jul. 2009 Naught Naught Naught Naught
3.6 Derivative products
□Applicable √Inapplicable
3.6.1 Derivative products held at the end of report period
□Applicable √Inapplicable
§4 Appendix
4.1 Balance sheet
Prepared by Guangdong Rieys Group Company Ltd 30 Sep. 2009
Unit: RMB (Yuan)
Balance at the period-end Balance at the year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current Assets:
Monetary funds 11,191,120.00 2,893,234.00 13,151,057.00 1,602,713.00
Settlement fund reserve
Dismantle fund
Transaction financial asset
Notes receivable
Account receivable 40,051,717.00 10,480,019.00 76,757,526.00 30,154,166.00
Account paid in advance 107,664,086.00 16,089,520.00 78,781,149.00 18,211,106.00
Premium receivables
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividend receivable
Other account receivable 43,884,978.00 125,497,411.00 48,779,676.00 182,572,201.00
Buying back the sale of financial assets
Inventories 67,939,279.00 9,227,391.00 56,639,216.00 340,973.00
Non-current assets due within 1 year 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
Other current assets
Total current liabilities 272,731,180.00 166,187,575.00 276,108,624.00 234,881,159.00
Non-current assets:
Loans and advance
Available for sale financial assets
Held to maturity investments
Long-term account receivable 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00
Long-term equity investment 5,130,000.00 207,845,599.00 5,130,000.00 207,345,600.00
Investing property
Fixed assets 234,666,907.00 100,880,582.00 258,240,860.00 66,903,158.00Construction in progress 5,514,942.00 4,355,572.00 2,199,942.00 1,040,572.00
Engineering material
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 68,332,092.00 68,320,588.00 69,476,718.00 50,608,839.00
Development expense
Goodwill
Long-term deferred expenses
Deferred tax assets 10,907,840.00 30,073,779.00 10,208,212.00 30,073,779.00
Other non-current assets
Total of non-current assets 329,551,781.00 416,476,120.00 350,255,732.00 360,971,948.00
Total assets 602,282,961.00 582,663,695.00 626,364,356.00 595,853,107.00
Current liabilities:
Short-term borrowings 215,533,284.00 194,715,652.00 221,847,632.00 201,030,000.00
Borrowing from Central Bank
Deposits and sue to banks and other financial
institutions
Call loan received
Transaction financial liabilities
Notes payable
Account payable 3,567,370.00 102,435.00 7,015,488.00 30,194.00
Account received in advance 5,910,134.00 2,067,753.00
Financial assets sold for repurchase
Handling charges and commissions payable
Employee’s compensation payable 2,021,014.00 301,999.00 2,382,538.00 154,697.00
Tax payable 6,441,145.00 1,140,343.00 4,976,745.00 1,549,465.00
Interest payable 38,287,919.00 34,298,861.00 24,640,579.00 22,793,407.00
Dividend payable
Other account payable 6,960,236.00 52,569,065.00 11,324,383.00 47,832,618.00
Reinsurance premiums payable
Insurance contract reserves
Money received for acting trading of securities
Money paid for acting underwriting of securities
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 278,721,102.00 283,128,355.00 274,255,118.00 273,390,381.00
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Accrued liabilitiesDeferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 278,721,102.00 283,128,355.00 274,255,118.00 273,390,381.00
Owner’ equity (or shareholder’s equity)
Paid-up capital (or share capital) 318,600,000.00 318,600,000.00 318,600,000.00 318,600,000.00
Capital reserves 52,129,497.00 52,129,497.00 52,129,497.00 52,129,497.00
Less: Treasury Stock
Special reserves
Surplus reserves 86,036,260.00 86,036,260.00 86,036,260.00 86,036,260.00
Provisions for general risks
Retained profits -139,604,129.00 -157,230,417.00 -111,144,440.00 -134,303,031.00
Foreign exchange difference
Total owners' equity attributable to parent company 317,161,628.00 299,535,340.00 345,621,317.00 322,462,726.00
Minority interest 6,400,231.00 6,487,921.00
Total owner’s equity 323,561,859.00 299,535,340.00 352,109,238.00 322,462,726.00
Total liabilities and owner’s equity 602,282,961.00 582,663,695.00 626,364,356.00 595,853,107.00
4.2 Income statement in this report period
Prepared by Guangdong Rieys Group Company Ltd Jul.-Sep. 2009
Unit: RMB (Yuan)
Current period Same period of the previous year
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 31,211,579.00 4,872,358.00 51,997,186.00 9,808,571.00
Including: Sales income 31,211,579.00 4,872,358.00 51,997,186.00 9,808,571.00
Interest income
Premium income
Handling charges and commission income
II. Total cost of sales 38,115,586.00 11,596,421.00 64,396,729.00 21,473,367.00
Including: Cost of sales 21,583,806.00 4,360,942.00 39,174,013.00 8,976,209.00
Interests expenses
Handling charges and commission expenses
Cash surrender value
Net amount of claims
Net amount of withdrawn from the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 25,925.00 34,608.00
Selling expenses 4,521,497.00 304,489.00 5,702,246.00 83,318.00
Administrative expenses 7,710,516.00 2,970,108.00 14,309,012.00 7,391,722.00
Financial expenses 4,273,842.00 3,960,882.00 5,176,851.00 5,022,118.00
Impairment lossAdd: gain from change in fair value (“-” means
loss)
Gain from investment (“-” means loss)
Including: income form investment on affiliated
enterprise and jointly enterprise
Foreign exchange difference (“-” means loss) -2,294.00 -338,962.00 -20,020.00
III. Business profit (“-” means loss) -6,906,301.00 -6,724,063.00 -12,738,505.00 -11,684,816.00
Add: non-operation income 1,526.00 5.00
Less: non-business expense 489,879.00 8,635.00 276,641.00 309,474.00
Including: loss from non-current asset disposal
IV. Total profit (“-” means loss) -7,394,654.00 -6,732,693.00 -13,015,146.00 -11,994,290.00
Less: Tax expense 669,992.00 36,901.00
V. Net profit (“-” means loss) -8,064,646.00 -6,732,693.00 -13,052,047.00 -11,994,290.00
Attributable to owners of parent company -7,998,119.00 -6,732,693.00 -13,007,284.00 -11,994,290.00
Minority interest -66,527.00 -44,763.00
VI. Earnings per share
(I) Basic earnings per share -0.03 -0.02 -0.04 -0.04
(II) Diluted earnings per share -0.03 -0.02 -0.04 -0.04
VII. Other comprehensive income 0.00 0.00 0.00 0.00
VIII. Total comprehensive income -8,064,646.00 -6,732,693.00 -13,052,047.00 -11,994,290.00
Attributable to owners of parent company -7,998,119.00 -6,732,693.00 -13,007,284.00 -11,994,290.00
Minority interest -66,527.00 -44,763.00
4.3 Income statement from the year-beginning to the end of report period
Prepared by Guangdong Rieys Group Company Ltd Jul.-Sep. 2009
Unit: RMB (Yuan)
Current period Same period of the previous year
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 105,136,659.00 5,194,077.00 146,478,247.00 29,383,507.00
Including: Sales income 105,136,659.00 5,194,077.00 146,478,247.00 29,383,507.00
Interest income
Premium income
Handling charges and commission income
II. Total cost of sales 133,083,545.00 28,062,050.00 182,224,773.00 56,727,322.00
Including: Cost of sales 75,368,610.00 4,693,888.00 110,745,882.00 27,659,343.00
Interests expenses
Handling charges and commission expenses
Cash surrender value
Net amount of claims
Net amount of withdrawn from the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premiumTaxes and associate charges 109,030.00 127,607.00
Selling expenses 12,308,499.00 310,463.00 16,966,959.00 306,821.00
Administrative expenses 26,075,206.00 9,068,807.00 35,557,068.00 13,709,529.00
Financial expenses 16,344,156.00 13,988,892.00 18,827,257.00 15,051,629.00
Impairment loss 2,878,044.00
Add: gain from change in fair value (“-” means
loss)
Gain from investment (“-” means loss) 1,847,417.00
Including: income form investment on affiliated
enterprise and jointly enterprise
1,847,417.00
Foreign exchange difference (“-” means loss) -114,978.00 -7,260,265.00 -1,250,799.00
III. Business profit (“-” means loss) -26,214,447.00 -22,867,973.00 -43,006,791.00 -28,594,614.00
Add: non-operation income 36,015.00 15.00 38,921.00 1,230.00
Less: non-business expense 969,928.00 59,428.00 2,310,994.00 1,517,882.00
Including: loss from non-current asset disposal
IV. Total profit (“-” means loss) -27,148,360.00 -22,927,386.00 -45,278,864.00 -30,111,266.00
Less: Tax expense 1,399,018.00 -1,155,419.00
V. Net profit (“-” means loss) -28,547,378.00 -22,927,386.00 -44,123,445.00 -30,111,266.00
Attributable to owners of parent company -28,459,689.00 -22,927,386.00 -44,237,893.00 -30,111,266.00
Minority interest -87,690.00 114,448.00
VI. Earnings per share
(I) Basic earnings per share -0.09 -0.07 -0.14 -0.09
(II) Diluted earnings per share -0.09 -0.07 -0.14 -0.09
VII. Other comprehensive income 0.00 0.00 0.00 0.00
VIII. Total comprehensive income -28,547,378.00 -22,927,386.00 -44,123,445.00 -30,111,266.00
Attributable to owners of parent company -28,459,688.00 -22,927,386.00 -44,237,893.00 -30,111,266.00
Minority interest -87,690.00 114,448.00
4.4 Cash flow statement from the year-beginning to the end of report period
Prepared by Guangdong Rieys Group Company Ltd Jul.-Sep. 2009
Unit: RMB (Yuan)
Amount of current period Amount of last period
Items
Consolidation Parent company Consolidation Parent company
I. Cash flows from operating activities:
Cash received from sale of commodities and
rendering of service
145,684,848.00 24,868,223.00 168,994,146.00 26,933,024.00
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 contractsNet cash received from reinsurance business
Net increase of savings 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 borrowed inter-bank funds
Net increase of buy-back funds
Tax refunds received 8,394,651.00 7,349,478.00
Other cash received relating to operating
activities
10,494,759.00 27,006,349.00 23,780,566.00 3,826,940.00
Subtotal of cash inflows from operating activities 164,574,258.00 51,874,572.00 200,124,190.00 30,759,964.00
Cash paid for purchase of commodities and
reception of service
115,529,920.00 11,386,479.00 153,637,065.00 37,281,725.00
Net increase of customer lending and advance
Net increase of funds deposited in the central
bank and amount due from banks
Cash for paying claims of the original insurance
contract
Cash for paying interest, handling charges and
commissions
Cash for paying policy dividends
Cash paid to and for employees 21,190,172.00 1,819,181.00 22,502,513.00 2,201,703.00
Various taxes paid 3,589,618.00 348,216.00 5,656,386.00 1,054,952.00
Payment of cash relating to operating activities 24,767,733.00 27,782,896.00 63,165,715.00 105,620,343.00
Subtotal of cash outflows from operating activities 165,077,443.00 41,336,772.00 244,961,679.00 146,158,723.00
Net cash flows from operating activities -503,185.00 10,537,800.00 -44,837,489.00 -115,398,759.00
II. Cash Flows from investment activities:
Cash received from return of investments
Cash received from investment income
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
8,210,838.00 48,000.00 252,703.00 116,440.00
Net cash received from disposal of subsidiary or
other operating business units
1.00 1.00 171,500,000.00 171,500,000.00
Other cash received relating to investment
activities
Subtotal of cash inflows from investment
activities
8,210,839.00 48,001.00 171,752,703.00 171,616,440.00
Cash paid to acquire fixed assets, intangible
assets and other long-term assets
625,370.00 5,988,427.00 34,748.00
Cash paid to investment 500,000.00
Net increase of pledged loansNet cash paid by subsidiaries and other
operating business units
Payment of cash relating to other investment
activities
Subtotal of cash outflows from investment
activities
625,370.00 500,000.00 5,988,427.00 34,748.00
Net cash flows from investment activities 7,585,469.00 -451,999.00 165,764,276.00 171,581,692.00
III. Cash flows from financing activities:
Cash received from absorbing investment
Including: Cash received from increase in
minority interest
Cash received from borrowings 15,000,000.00 40,000,000.00 40,000,000.00
Cash received from issuance of bonds
Other cash received relating to financing
activities
Subtotal of cash inflows from financing activities 15,000,000.00 40,000,000.00 40,000,000.00
Cash repayments of amounts borrowed 21,314,348.00 6,314,348.00 125,690,072.00 81,274,876.00
Cash paid interest expenses and distribution of
dividends or profit
2,612,896.00 2,480,933.00 11,593,912.00 5,518,799.00
Including: dividends or profit paid to minority
interest
Other cash payments relating to financing
activities
Sub-total of cash outflows from financing activities 23,927,244.00 8,795,281.00 137,283,984.00 86,793,675.00
Net cash flow from financing activities -8,927,244.00 -8,795,281.00 -97,283,984.00 -46,793,675.00
IV. Effect of foreign exchange rate changes on
cash and cash equivalents
-114,978.00 -7,260,265.00 -1,250,799.00
V. Increase in cash and cash equivalents -1,959,938.00 1,290,520.00 16,382,538.00 8,138,459.00
Add : Cash and cash equivalents at year-begin 13,151,057.00 1,602,714.00 8,712,973.00 1,665,416.00
VI. Cash and cash equivalents at the end of the
year
11,191,119.00 2,893,234.00 25,095,511.00 9,803,875.00
4.5 Auditor’s report
Auditor’s opinion: un-audited
