The first quarterly report 2010 of Guangdong Rieys (Group) Co., Ltd.
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Guangdong Rieys (Group) Co., Ltd.
The First Quarterly Report 2010
§1 Important Notes
1.1 The Board of Directors, the Supervisory Committee as well as the directors, supervisors and
senior management staff of Guangdong Rieys Group Company Ltd. (hereinafter referred to as “the
Company”) hereby confirm that there exists no omission, misstatement, or misleading information
in this report, and accept, individually and collectively, the responsibility for the correctness,
accuracy and completeness of the contents of this report.
1.2 Naught
1.3 The directors attended the Board meeting in person, at which the annual report 2009 is reviewed,
other than the following directors:
Name Office title Reason Name of assignee
Chen Honghai Director Business Chen Hongcheng
1.4 The first quarterly financial report has not been audited by Accounting Firm.
1.5 Chairman of the Board Mr. Chen Hongcheng, Chief Financial Officer Ms. Chen Peixia and
Financial Manager Mr. Zheng Guangde hereby confirm that the Financial Report enclosed in the
Quarterly Report is true and complete.
[The Annual Report is written in both English and Chinese. In case of any discrepancy between the
two versions, Chinese version prevails.]
§2 Company Profile
2.1 Main accounting data and financial indices
Unit: RMB Yuan
At the end of the
reporting period At the end of last year Increase/decrease
(%)
Total assets (RMB Yuan) 650,242,652.11 640,024,704.10 1.60%
Owner’s equity attributable to
shareholders of listed company (RMB
Yuan)
343,540,967.36 349,348,058.06 -1.66%
Share capital (Share) 318,600,000.00 318,600,000.00 0.00%
Net asset per share attributable to
shareholders of listed company (RMB
Yuan)
1.08 1.10 -1.82%
Reporting period Same period of last year Increase/decrease
(%)
Sales turnover (RMB Yuan) 40,059,360.01 45,171,011.06 -11.32%
Net profit attributable to shareholders of
listed company (RMB Yuan) -5,807,090.68 -7,019,514.89 5.19%
Net cash flow arising from operating 27,935,193.95 5,863,170.00 376.45%The first quarterly report 2010 of Guangdong Rieys (Group) Co., Ltd.
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activities (RMB Yuan)
Net cash flow per share arising from
operating activities (RMB Yuan/share) 0.09 0.02 350.00%
Basic earnings per share (RMB
Yuan/share) -0.02 -0.02 0.00%
Diluted earnings per share (RMB
Yuan/share) -0.02 -0.02 0.00%
Weighted average return on equity (%) -1.92% -2.05% 0.13%
Weighted average return on equity after
deducting extraordinary gains and losses
(%)
-1.79% -2.52% 0.73%
Items of extraordinary gains and losses Amount from 1 Jan. to 31
Mar. 2010
Other non-operating income and expense other than abovementioned -462,817.90
Total -462,817.90
Explanation on important items of extraordinary gains and losses:
Naught
2.2 Statement on total number of shareholders and shares held by the top ten shareholders not
subject to trading moratorium
Unit: share
Total number of shareholders 16,054
Shares held by the top ten tradable shareholders
Full name of shareholders Number of tradable shares at the
period-end Type
SU YOU HE 6,105,582 Domestically listed foreign shares
XU XIN FEN 2,090,570 Domestically listed foreign shares
TAIFOOK SECURITIES COMPANY
LIMITED-ACCOUNT CLIENT 1,547,459 Domestically listed foreign shares
LUO DONG HUI 1,400,000 Domestically listed foreign shares
XU XIN HU 1,149,000 Domestically listed foreign shares
NGAI KWOK PAN 1,144,616 Domestically listed foreign shares
XU HAI 1,059,000 Domestically listed foreign shares
HSBC BROKING SECURITIES (ASIA)
LIMITED-CLIENTS A/C 836,160 Domestically listed foreign shares
CHEN ZHEN QI 701,800 Domestically listed foreign shares
ZHOU XIAO QUN 635,800 Domestically listed foreign shares
§3 Significant Events
3.1 Significant changes in major accounting data, financial highlights and reasons for these changes.
√Applicable □Non-applicable
Balance sheet Closing balance Opening balance Increase/decrease% Note
Monetary fund 24,775,616 2,168,571 1,042,49 Loan and current
payment recoveryThe first quarterly report 2010 of Guangdong Rieys (Group) Co., Ltd.
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Construction in progress 4,858,812 1,040,572 366.94 Increase of engineering
in this period
Income statement 2009 2008 Increase/decrease% Note
Gains/(losses) from
investment (“-” means loss)
1,847,417 -100.00 Transfer Heyiyi at the
price of RMB 1
Less: Income tax expense 1,909,037.58 1,178,268 62.02 Increase of profit,
resulting in increase of
income tax
3.2 Process of significant events and influence, as well as analysis and explanation on resolving
proposal
□Applicable √Inapplicable
3.3 Special commitments made by the company, shareholders and actual controllers
□Applicable √Inapplicable
3.4 Warnings of possible loss or large-margin 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 Loss
Jan.-Jan. 2010 Jan. – Jun. 2009 Increase/decrease (%)
Estimated accumulative
net profit (RMB 10,000) -1,200.00 -2,046.00 Decrease -32%
Basic EPS (Yuan/share) -0.04 -0.06 Decrease -32%
Notes to performance
forecast
In 2009, Puning Rieys Paper Co., Ltd. was peeled off form the Company, and the
Company repaid bank loan principal, resulting in decrease of loss. However, in 2010,
the real estate projects of the Company is still in development period, the Company
failed to settle during the first nine months, therefore, the Company will lose money for
the first six months of 2010.
3.5 Other significant events need to be explained
3.5.1 Securities investment
□Applicable √Inapplicable
3.5.2 Reception of research, interviews and visits in the reporting period: N/A
3.5.3 Explanation on other significant events
□Applicable √Inapplicable
3.6 Derivative Investment
□Applicable √Inapplicable
3.6.1 Derivatives held as at the end of the report period
□Applicable √Inapplicable
§4 AttachmentThe first quarterly report 2010 of Guangdong Rieys (Group) Co., Ltd.
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4.1 Balance sheet
Prepared by Guangdong Rieys (Group) Company Ltd. 31 Mar. 2010 Unit: RMB Yuan
Items
Closing Amount Opening amount
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 24,775,616.18 19,581,357.63 2,168,571.06 647,412.49
Settlement fund reserve
Dismantle fund
Transaction financial asset
Notes receivable
Account receivable 65,907,265.04 847,962.93 56,358,542.78 11,421,549.96
Account paid in advance 69,327,471.52 5,500,166.55 63,583,703.28 4,039,432.45
Premium receivables
Receivables from reinsurers
Reinsurance contract reserve
receivables
Interest receivable
Dividend receivable
Other account receivable 97,814,229.31 144,932,218.70 121,524,095.54 149,219,951.35
Financial assets purchased
under agreements to resell
Inventories 190,625,610.10 3,755,874.31 195,246,476.67 3,884,313.41
Non-current assets due within 1
year 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00
Other current assets
Total current assets 453,450,192.15 179,617,580.12 443,881,389.33 174,212,659.66
Non-current assets:
Loans and advance
Available for sale financial assets
Held to maturity investments
Long-term account receivable
Long-term equity investment 250,832,508.68 250,832,508.68
Investment real estate
Fixed asset 111,051,662.52 103,365,909.73 113,529,392.33 105,415,799.26
Construction in progress 4,858,812.22 4,858,812.22 1,040,571.59 1,040,571.59
Engineering material 1,530,000.00 1,530,000.00 1,530,000.00 1,530,000.00
Fixed asset disposal
Bearer biological asset
Oil and gas assets
Intangible assets 67,568,821.83 67,568,821.83 67,944,705.09 67,944,705.09
Development expense
Goodwill
Long-term expense to be
apportioned
Deferred income tax assets 11,783,163.39 2,513,148.55 12,098,645.76 2,513,148.55
Other non-current assets
Total of non-current assets 196,792,459.96 430,669,201.01 196,143,314.77 429,276,733.17
Total assets 650,242,652.11 610,286,781.13 640,024,704.10 603,489,392.83The first quarterly report 2010 of Guangdong Rieys (Group) Co., Ltd.
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Current liabilities:
Short-term borrowings 210,283,283.66 189,465,651.75 213,583,282.66 192,765,650.75
Borrowings from Central Bank
Deposits and due to banks and
other financial institutions
Borrowings from banks and
other financial institutions
Transactional financial
liabilities
Notes payable
Accounts payable 4,259,473.55 150,668.92 4,521,832.85 102,434.92
Accounts received in advance 170,447.24 47,031.07 570,447.24
Financial assets sold under
agreements to repurchase
Handling charges and
commissions payable
Employee’s compensation
payable 885,096.17 167,706.69 2,666,808.00 428,362.11
Taxes and fares payable 8,755,358.21 2,308,916.81 8,406,437.19 2,235,632.14
Interest payable 51,707,896.02 46,690,159.98 46,682,049.12 42,298,670.85
Dividend payable
Other accounts payable 24,223,075.04 103,153,699.46 7,721,559.81 88,842,039.66
Due to reinsurers
Insurance contract reserve
Amount payable for acting
trading securities
Amount payable for acting
underwriting securities
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 300,284,629.89 341,983,834.68 284,152,416.87 326,672,790.43
Non-current liabilities:
Long-term borrowings
Debentures payable
Long-term payables
Specific-purpose account
payables
Accrued liabilities
Deferred income tax liabilities
Other non-current liabilities 500,000.00 500,000.00
Total non-current liabilities 500,000.00 500,000.00
Total liabilities 300,784,629.89 341,983,834.68 284,652,416.87 326,672,790.43
Shareholders’ equity
Share capital 318,600,000.00 318,600,000.00 318,600,000.00 318,600,000.00
Capital surplus 52,129,496.58 52,129,496.58 52,129,496.58 52,129,496.58
Less: Treasury Stock
Special reserve
Surplus reserve 86,036,260.20 86,036,260.20 86,036,260.20 86,036,260.20The first quarterly report 2010 of Guangdong Rieys (Group) Co., Ltd.
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General risk provision
Retained earnings -113,224,789.42 -188,462,810.33 -107,417,698.72 -179,949,154.38
Foreign exchange difference
Total owners' equity attributable
to holding company 343,540,967.36 268,302,946.45 349,348,058.06 276,816,602.40
Minority interests 5,917,054.86 6,024,229.17
Total owners’ equity 349,458,022.22 268,302,946.45 355,372,287.23 276,816,602.40
Total liabilities and owners’
equity 650,242,652.11 610,286,781.13 640,024,704.10 603,489,392.83
4.2 Income statement
Prepared by Guangdong Rieys (Group) Company Ltd. Jan.-Mar. 2010 Unit: RMB Yuan
Items
Jan.-Mar. 2010 Jan.-Mar. 2009
Consolidation Parent Company Consolidation Parent Company
I. Total operating revenue 40,059,360.01 3,537,411.88 45,171,011.06 0.00
Including: Sales 40,059,360.01 3,537,411.88 45,171,011.06 0.00
Interest income
Premium income
Handling charges and commission
income
II. Total operating cost 43,991,389.74 11,561,708.29 52,524,502.55 7,999,546.08
Including: Cost of sales 26,987,411.47 3,194,757.21 32,578,839.51
Interest expenses
Handling charges and commission
expenses
Surrender value
Claim expenses-net
Insurance contract reserve-net
Policy dividend payment
Amortized reinsurance expense
Taxes and surcharges 33,971.52 42,324.07
Selling and distribution expenses 3,843,779.24 82,645.28 4,049,466.48 2,026.00
Administrative expenses 7,853,254.18 3,745,066.99 10,085,567.75 3,057,810.87
Financial expense 5,272,973.33 4,539,238.81 5,768,304.74 4,939,709.21
Asset impairment loss
Add: gain/(loss) from change in
fair value (“-” means loss)
Gain/(loss) from investment (“-”
means loss) 1,847,416.59
Including: income form
investment on affiliated
enterprises and jointly-run
enterprise
1,847,416.59
Foreign exchange difference (“-”
means loss)
III. Business profit (“-” means
loss) -3,932,029.73 -8,024,296.41 -5,506,074.90 -7,999,546.08
Add: Non-operation income 56,898.01 16,198.01 5.00 5.00
Less: Non- operation expense 510,868.69 505,557.55 334,412.69 30,793.20The first quarterly report 2010 of Guangdong Rieys (Group) Co., Ltd.
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Including: loss on non-current
asset disposal
IV. Total profit (“-” means loss) -4,386,000.41 -8,513,655.95 -5,840,482.59 -8,030,334.28
Less: Income tax expense 1,528,264.59 1,178,267.65
V. Net profit (“-” means loss) -5,914,265.00 -8,513,655.95 -7,018,750.24 -8,030,334.28
Attributable to owners of parent
company -5,807,090.68 -8,513,655.95 -7,019,514.89 -8,030,334.28
Minority interests -107,174.32 764.65
VI. Earnings per share
(I) Basic earnings per share -0.02 -0.03 -0.02 -0.03
(II) Diluted earnings per share -0.02 -0.03 -0.02 -0.03
Ⅶ. Other comprehensive income
Ⅷ. Total comprehensive income -5,914,265.00 -8,513,655.95 -7,018,750.24 -8,030,334.28
Attributable to owners of
parent company -5,807,090.68 -8,513,655.95 -7,019,514.89 -8,030,334.28
Attributable to minority
shareholders -107,174.32 764.65
4.3 Cash flow statement
Prepared by Guangdong Rieys (Group) Company Ltd. Jan.-Mar. 2010 Unit: RMB Yuan
Items
Jan.-Mar. 2010 Jan.-Mar. 2009
Consolidation Parent Company Consolidation Parent Company
I. Cash flows from operating
activities:
Cash received from sales of goods
or rending of services 30,110,637.75 14,158,030.00 37,509,903.00 8,662,716.00
Net increase in customer bank
deposits and due to banks and
other financial institutions
Net increase in borrowings from
central bank
Net increase in borrowings from
other financial institutions
Premium received from original
insurance contracts
Net cash received from
reinsurance
Net increase in policy holder
deposits and investment funds
Net increase in disposal of
held-for-trading financial assets
Interest, handling charges and
commissions received
Net increase in borrowings from
banks and other financial
institutions
Net increase in buy-back business
Refund of taxes and fares
received 4,550,420.99 2,900,000.00
Other cash received relating to
operating activities 36,398,695.78 21,293,830.00 5,112,824.00 4,224,232.00The first quarterly report 2010 of Guangdong Rieys (Group) Co., Ltd.
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Sub-total of cash inflows from
operating activities 71,059,754.52 35,451,860.00 45,522,727.00 12,886,948.00
Cash paid for goods and services 24,618,026.21 4,464,482.00 21,093,822.00 4,530,522.00
Net increase in loans and
advances to customers
Net increase in deposits with
central bank and other financial
institutions
Original insurance contract claims
paid
Cash paid for interest, fees and
commissions
Dividends paid to policyholders
Cash paid to and on behalf of
employees 7,919,124.00 868,719.00 7,438,484.00 562,727.00
Taxes and fares paid 1,428,192.00 173,710.00 1,194,220.00 201,361.00
Other cash paid relating to
operating activities 9,159,218.36 5,740,262.00 9,933,031.00 4,054,094.00
Sub-total of cash outflows from
operating activities 43,124,560.57 11,247,173.00 39,659,557.00 9,348,704.00
Net cash flows from operating
activities 27,935,193.95 24,204,687.00 5,863,170.00 3,538,244.00
II. Cash Flows from Investment
Activities:
Cash received from withdrawing
investments 2,000,000.00 2,000,000.00 1.00 1.00
Cash received from investment
income
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets
185,095.00 48,000.00
Net proceeds from sale of
subsidiaries and other operating
units
Other cash received relating to
investment activities
Sub-total of cash inflows from
investment activities 2,000,000.00 2,000,000.00 185,096.00 48,001.00
Cash paid for acquiring fixed
assets, intangible assets and other
long-term assets
3,875,648.83 3,818,241.00 7,600.00
Cash paid for investments
Net increase in pledged loans
Net cash used for acquiring
subsidiaries and other operating
units
Other cash paid relating to
investment activities
Sub-total of cash outflows from
investment activities 3,875,648.83 3,818,241.00 7,600.00
Net cash flows from investing
activities -1,875,648.83 -1,818,241.00 177,496.00 48,001.00
III. Cash Flows from Financing
Activities:
Cash received from absorbingThe first quarterly report 2010 of Guangdong Rieys (Group) Co., Ltd.
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investment
Including: Cash received by
subsidiaries from increase in
minority interests
Cash received from borrowings
Cash received from issuing
debentures
Other proceeds relating to
financing activities
Sub-total of cash inflows from
financing activities
Cash paid for settling debts 3,299,999.00 3,299,999.00
Cash paid for distribution of
dividends or profit or reimbursing
interest
152,501.00 152,501.00 849,612.00 821,748.00
Including: dividends or profit paid
by subsidiaries to minority
interests
Other cash payments relating to
financing activities 19,000,000.00 19,000,000.00
Sub-total of cash outflows from
financing activities 22,452,500.00 22,452,500.00 849,612.00 821,748.00
Net cash flows from financing
activities -22,452,500.00 -22,452,500.00 -849,612.00 -821,748.00
IV. Effect of foreign exchange
rate changes on cash and cash
equivalents
V. Net increase in cash and cash
equivalents 3,607,045.12 -66,054.00 5,191,054.00 2,764,497.00
Add : Cash and cash equivalents
at year-begin 2,168,571.06 647,412.00 13,151,057.00 1,602,714.00
VI. Cash and cash equivalents at
the end of the year 5,775,616.18 581,358.00 18,342,111.00 4,367,211.00
4.4 Auditor’s report
Auditor’s opinion: un-audited
