English Translation for Reference Only
Stock Code: 200168 Short Form of the Stock: ST RIEYS-B Announcement No.: 2011-017
GUANGDONG RIEYS GROUP COMPANY LTD.
SUMMARY OF SEMI-ANNUAL REPORT 2011
§1 Important Notes
1.1 The Board of Directors, the Board of Supervisors 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 will accept individual and/or
joint liabilities for factuality, accuracy and completeness of the contents of this report.
The Summary of Semi-annual Report 2011 is abstracted from the full text of the
Semi-annual Report 2011, which is published on the Internet website
http://www.cninfo.com.cn in the mean time. The investors are suggested to read the
full text to understand more details.
1.2 Naught
1.3 The semi-annual financial report of the Company has not been audited by a CPA
firm.
1.4 Person in charge of the Company Mr. Chen Hongcheng, person in charge of the
accounting work and person in charge of the accounting organ (also Chief Financial
Officer) Ms. Chen Peixia, hereby confirm that the Financial Report enclosed in the
Semi-annual Report is true and complete.
English Translation for Reference Only. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
§2. Company Profile
2.1 Basic information
Short form of the stock ST Rieys-B
Stock code 200168
Stock exchange Shenzhen Stock Exchange
Company Secretary Securities Affairs Representative
Name Mr. Xu Wei Mr. Chen Yaoji
Rm. 4005, International Chamber of Rm. 4005, International Chamber of
Contact address Commerce Tower, Fuhua No.3 Rd., Futian Commerce Tower, Fuhua No.3 Rd., Futian
District, Shenzhen District, Shenzhen
Telephone 82250045 82250045
Fax 82251182 82251182
E-mail xw@200168.com jacobchen63@yahoo.com.cn
2.2 Financial highlights
2.2.1 Main accounting data and financial indices
English Translation for Reference Only
Unit: RMB Yuan
Increase/decrease at the end of this
At the end of this At the end of last
reporting period compared with the
reporting period year
end of last year (%)
Total assets (Yuan) 552,723,733.25 586,050,810.45 -5.69%
Owners’ equity attributable to shareholders of the
303,727,165.13 308,161,044.95 -1.44%
listed company (Yuan)
Share capital (share) 318,600,000.00 318,600,000.00 0.00%
Net assets per share attributable to shareholders of
0.95 0.97 -2.06%
the listed company (Yuan/share)
Reporting period
Same period of last
(From Jan. to Jun. Increase/decrease year-on-year (%)
year
2011)
Total operating income (Yuan) 46,761,330.11 79,628,557.04 -41.28%
Operating profit (Yuan) -1,447,888.63 -6,610,032.77 -78.10%
Total profit (Yuan) -3,245,754.32 -7,362,420.31 -55.91%
Net profit attributable to shareholders of the listed
-4,433,879.82 -11,339,502.78 -60.90%
company (Yuan)
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and -14,295,604.90 -10,586,307.45 58.12%
losses (Yuan)
Basic earnings per share (Yuan/share) -0.01 -0.04 -75.00%
Diluted earnings per share (Yuan/share) -0.01 -0.04 -75.00%
Weighted average ROE (%) -1.45% -4.12% 2.67%
Weighted average ROE after deducting
-4.67% -3.35% -1.32%
non-recurring gains and losses (%)
Net cash flows from operating activities (Yuan) 21,934,225.27 40,248,096.62 -45.50%
Net cash flows per share from operating activities
0.07 0.13 -46.15%
(Yuan/share)
2.2.2 Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Items of non-recurring gains and losses Amount Note (if applicable)
Gains and Losses on disposal of non-current assets 6,886,749.94
Gain/loss from change of fair value of transactional asset and
liabilities, and investment gains from disposal of transactional financial
15,899.54
assets and liabilities and sellable financial assets, other than valid
period value instruments related to the Company’s common businesses
Reversal of provision for impairment on accounts receivable that make
3,298,325.50
provision for impairment test individually
Other non-operating income and expenses other than the above items -624,311.14
Income tax effects 285,219.60
Minority interests effects -158.36
English Translation for Reference Only
Total 9,861,725.08 -
2.2.3 Difference between PRC GAAP and IFRSs
□Applicable √Inapplicable
§3. Changes in Share Capital and Particulars about Shareholders
3.1 Statement of change in share capital
□Applicable √Inapplicable
3.2 Particulars about shares held by the top ten shareholders and the top ten
shareholders holding tradable shares in the reporting period
Unit: share
Total shareholders at the
15,114
period-end
Shares held by the top ten shareholders
Nature of Percentage of Total number of Non-tradable shares Shares pledged or
Name of shareholders
shareholders shareholding shares held held frozen
Domestic
Puning Shenghengchang Trade
non-state-owned 36.99% 117,855,000 117,855,000 117,855,000
Development Co., Ltd
corporation
Domestic
Shenzhen Risheng Investment
non-state-owned 10.68% 34,020,000 34,020,000 34,020,000
Co., Ltd.
corporation
Domestic
Shantou Lianhua Industrial
non-state-owned 3.81% 12,150,000 12,150,000 12,150,000
Co., Ltd.
corporation
Domestic natural
Su Youhe 1.88% 6,001,663 0 0
person
Domestic natural
Qin Yuyan 0.59% 1,870,000 0 0
person
Domestic natural
Zheng Suxian 0.54% 1,721,118 0 0
person
Domestic natural
Xu Hai 0.48% 1,515,200 0 0
person
Domestic natural
LUO DONG HUI 0.45% 1,441,200 0 0
person
NGAI KWOK PAN (Wei Domestic natural
0.36% 1,145,816 0 0
Guobin) person
Taifook Securities Company Domestic natural
0.34% 1,087,459 0 0
Limited-Account Client person
Particulars about shares held by the top ten shareholders not subject to trading moratorium
Name of shareholder Number of tradable shares held Type of share
Su Youhe 6,001,663 Domestically listed foreign shares
Qin Yuyan 1,870,000 Domestically listed foreign shares
English Translation for Reference Only
Zheng Suxian 1,721,118 Domestically listed foreign shares
Xu Hai 1,515,200 Domestically listed foreign shares
LUO DONG HUI 1,441,200 Domestically listed foreign shares
NGAI KWOK PAN (Wei Guobin) 1,145,816 Domestically listed foreign shares
Taifook Securities Company Limited-Account
1,087,459 Domestically listed foreign shares
Client
Ke Zhongfeng 762,200 Domestically listed foreign shares
Duan Dejin 732,100 Domestically listed foreign shares
Chen Zhenqi 701,800 Domestically listed foreign shares
Explanation on associated
There exists associated relationship among Puning Shenghengchang Trade Development Co., Ltd,
relationship among the
Shenzhen Risheng Investment Co., Ltd. and Shantou Lianhua Industrial Co., Ltd.. Other associated
aforesaid shareholders or
relationship is unknown.
acting-in-concert
3.3 Changes in controlling shareholder and actual controller
□Applicable √Inapplicable
§4. Particulars about Directors, Supervisors and Senior Executives
4.1 Particulars about changes in shares held by directors, supervisors and senior
executives
□Applicable √Inapplicable
§5 Report of the Board of Directors
5.1 Statement on main business classified according to industries and products
Unit: RMB Ten thousand
Main business classified according to industries
Increase/decreas Increase/decreas Increase/decrease
Operating Operating Gross profit e of operating e of operating of gross profit
Industries or products
revenue cost ratio (%) revenue cost ratio income
year-on-year (%) year-on-year (%) year-on-year (%)
Industry 3,723.57 3,171.11 14.84% -44.10% -37.35% -9.29%
Commerce 866.56 516.50 40.40% -58.25% 64.70% 10.88%
Main business classified according to products
Garments 4,590.13 3,687.61 19.66% -41.75% -34.27% -9.14%
5.2 Main business classified according to regions
Unit: RMB Ten thousand
Increase/decrease over
Region Operating income
last year (%)
Export sales of garments 4,030.39 -31.05%
Domestic sales of garments 559.74 -72.49%
5.3 Reasons for changes in main operation and its structure
□Applicable √Inapplicable
English Translation for Reference Only
5.4 Reasons for significant changes in profitability (gross profit margin) of core
business compared with the last year
√Applicable □Inapplicable
Due to rising labor and material costs, the gross profit rate of the Company’s export
business experienced a significant drop in the reporting period. In the same period of
last year, the Company’s domestic sale of garments business was mainly processing
and selling at home, and the gross profit rate for the business remained at low levels
due to impact from labor and material costs. In the reporting period, the Company’s
domestic sale of garments business was mainly Shenzhen Missk Fashion Co., Ltd.
selling brand woman’s wear, with the profit rate registering a considerable rise as
compared with the same period of last year.
5.5 Reasons for significant changes in profit breakdown compared with the previous
year
□Applicable √Inapplicable
5.6 Utilization of raised proceeds
5.6.1 Utilization of raised proceeds
□Applicable √Inapplicable
5.6.2 Changes in projects invested with raised proceeds
□Applicable √Inapplicable
5.7 Revised business plan of the Board for the second half of the year
□Applicable √Inapplicable
5.8 Estimation on accumulative net profit from the beginning of the year to the end of
next reporting period to be loss probably or the warning of its significant change
compared with the corresponding period of the last year and explanation on reason
√Applicable □Inapplicable
Performance forecast Deficit
From the year-begin to the end The same period
Change (%)
of the next reporting period of last year
Accumulative net profit
-900.00 -1,461.00 Decrease -38.00%
expected (RMB Ten thousand)
Basic earnings per share (RMB
-0.028 -0.046 Decrease -38.00%
Yuan/share)
Currently, the main business scope of the Company is garments production and
real estate development, the reasons of the loss reduction in the net profit
incurred in the period from the year-begin to the end of the next reporting period
are as follows: (1) Real estate projects developed by the Company are still in the
development phase and they could not be completed and settled within the year
Explanation on performance 2011, and the profits of garments production can’t turn the Company to be profit;
(2) RMB 6.5 million of investment income was gained from the sales of
forecast Shenzhen Missk Fashion Co., Ltd. during the reporting period; (3) The debts
reorganization with China Construction Bank hasn’t been finished, so the
deducted interest can’t be recorded into current gains and losses temporarily. The
net profit for the period from Jan. to Sep. 2011 is estimated to stand at RMB -9
million, representing a loss reduction about RMB 5.61 million from the net profit
of RMB -14.61 million at the same period of last year.
5.9 Explanation of the Board of Directors on “Non-standard audit report” from the
Certified Public Accountants in the reporting period
English Translation for Reference Only
□Applicable √Inapplicable
5.10 Explanation of the Board of Directors on changes and solutions of the issues
involved in “Non-standard audit report” from the Certified Public Accountants in the
last year
√Inapplicable □Applicable
Asia (Group) Accounting Firm issued an unqualified audit report with pinpointed
matters for the 2010 Annual Financial Report of the Company.
The said pinpointed matters were stated as, “We warn the users of financial
statements to pay attention to the content of Notes to the Financial Statements X (10),
which is in the year 2010, net profit attributable to owners of the parent company
stood at RMB -41,187,000 and at RMB -42,204,000 after deducting non-recurring
gains and losses. In 2010, the main business scope of the Company was transformed
from garments to both garments and real estate development. The real estate projects
have been started but not pre-sold, there still existed uncertainty whether the real
estate business would generate a profit or not. The Company had disclosed in detail
improvement measures to be taken in the notes to the financial statements, but there
still existed a significant uncertainty about the going-concern ability of the Company.
The statements above will not affect the unqualified audit opinion that has been
issued.”
The Board of Directors is of the opinion that the biggest obstacle to the Company’s
development has been removed through the asset exchange at the end of 2009, which
greatly improves its asset quality. Although the Company is still in loss in the report
period, a loss reduction about RMB 6.72 million has been achieved as compared with
the loss about RMB 11.72 million in the same period of last year. As is shown, the
loss is decreasing. The real estate projects in Puning currently developed by the
Company are on smooth progress with about RMB 40 million being input in the
projects accumulatively during the first half year of 2011, thus the construction of the
projects can be implemented as schedule basically. Meanwhile, the target of national
macro control on real estate indicates that the demands in real estate market are large
in cities like Puning. To sum up, the Company’s business is beginning to turn in a
positive direction and its continual operation ability is fully guaranteed.
§6. Significant Events
6.1 Acquisition, sales and restructuring of assets
6.1.1 Assets acquired
□Applicable √Inapplicable
6.1.2 Assets sold
√Applicable □Inapplicable
Unit: RMB Ten thousand
Net profit Gain/los Related-p Whethe Whethe Relations
Transaction Asset sold Pricing
Date of sale Trading price contributed s on the arty r r credits hip with
party out principle
by the asset sale transactio owners and the
English Translation for Reference Only
to the n or not hip of liabiliti transactio
Company the es of n party
from the involve the (applicabl
year-begin to d asset involve e for
the date of has d asset related-pa
sale been all have rty
transfer been all transactio
red or transfer ns)
not red or
not
A current
director
of the
Company
85% equity Based on
and an
of Shenzhen assessme
Chen acting-in-
Missk 30 Jun. 2011 0.00 -370.81 806.03 Yes nt and Yes Yes
Xuewen concert
Fashion Co., negotiatio
person of
Ltd. n
the
Company
’s actual
controller
6.1.3 Progress of these events and its influence on the operating results and financial
status in the reporting period after the report on assets restructure or public notice on
acquisition and sales of assets being published
√Applicable □Inapplicable
The relevant matter has been accomplished. On one hand, such transaction favored
the Company to reduce losses and recover the arrearage of RMB 17.28 million from
Shenzhen Missk Fashion Co., Ltd., on the other hand, it helped the Company
centralize current limited resources to make the Company’s real estate business more
professional, refined and strong, thus helped the Company’s business scope to realize
the transformation from garment production to real estate development as soon as
possible. After the primary estimation by the Company’s finance department, such
transaction would make about RMB 6.5 million of investment income for the
Company in 2011. After the complete of such transaction, Shenzhen Missk Fashion
Co., Ltd. wouldn’t be included into the Company’s consolidated financial statements,
thus it wouldn’t generate any related transaction with the Company.
6.2 Guarantees
□Applicable √Inapplicable
6.3 Non-operating related credits and liabilities
√Applicable □Inapplicable
Unit: RMB Ten thousand
Related party Capital provided for related parties Capital provided by related parties
English Translation for Reference Only
Occurrence amount Balance Occurrence amount Balance
Shenzhen Risheng
0.00 0.00 1,450.00 1,450.00
Investment Co., Ltd.
Chen Xuewen 0.00 0.00 400.00 400.00
Total 0.00 0.00 1,850.00 1,850.00
Of which: For the reporting period, the capital occupation amount of the controlling
shareholder and its subsidiaries in the Company stood at RMB 0.00, with the balance
being RMB 0.00.
6.4 Significant lawsuits and arbitrations
□Applicable √Inapplicable
6.5 Other significant events and explanation and analysis on their influences and
solutions
□Applicable √Inapplicable
6.5.1 Securities investment
√Applicable □Inapplicable
Unit: RMB Yuan
Proportion in
Number of total
Initial
Short form of shares held at Book value at securities Profits and gains in
No. Type of stock Stock code investment
stock period-end period-end investment at reporting period
amount (Yuan)
(unit: share) period-end
(%)
1 Stock 600135 Lucky Film 5,704,737.52 358,600 5,612,090.00 100.00% -92647.52
Other securities investment held at the period-end 0.00 - 0.00 0.00% 0.00
Profits or losses of securities sold in the reporting
- - - - 108.547.06
period
Total 5,704,737.52 - 5,612,090.00 100% 15899.54
Explanation on securities investment:
With purpose of promoting the use efficiency of idle capital, securities investment of
the Company is in accordance with management authorities and all procedure as well
as decision approval of conducting securities investment. While securities investment
of the Company is of a small amount, low profitability that has a little impact on
business performance of the reporting period.
6.5.2 Equity of other listed companies held by the Company
□Applicable √Inapplicable
6.5.3 Non-operating capital occupation by principal shareholders and its affiliated
enterprises and progress of debt repayment
□Applicable √Inapplicable
6.5.4 Implementation of commitments made by the Company, as well as its
shareholders and actual controller
Commitments made by the Company, its directors, supervisors, senior executives,
shareholders with an over 5% shareholding, actual controller and other stakeholders
during the reporting period, or such commitments carried down into the reporting
period:
English Translation for Reference Only
□Applicable √Inapplicable
6.5.5 Pre-plan of the Board of Directors for profit distribution or turning capital
reserves into share capital
□Applicable √Inapplicable
6.5.6 Items of other comprehensive income
Unit: RMB Yuan
Same period of last
Items Reporting period
year
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 0.00 0.00
6.6 Researches, interviews and visits received in the reporting period
English Translation for Reference Only
Reception Main discussion and materials provided
Reception place Reception way Visitor
time by the Company
21 Feb. 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
25 Feb. 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
8 Mar. 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
10 Mar. 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
29 Mar. 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
31 Mar. 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
6 Apr. 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
6 Apr. 2011 Office of the Board Inquiring about debts reorganization
By telephone Shareholder
of Directors situation with Shenzhen Branch
18 Apr. 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
13 May 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
23 May 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
13 Jun. 2011 Office of the Board Inquiring about basic situation of the
By telephone Shareholder
of Directors Company
§7 Financial Report
7.1 Auditing opinions
Financial Report √Un-audited □Audited
7.2 Financial statements
7.2.1 Balance Sheet
Prepared by Guangdong Rieys (Group) Company Ltd. 30 Jun. 2011 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 4,515,752.81 2,682,025.61 30,095,398.06 28,150,078.47
Settlement reserves
Intra-group lendings
Transactional financial assets 5,612,090.00 2,804,480.00
English Translation for Reference Only
Notes receivable
Accounts receivable 39,087,593.01 60,384,107.71
Accounts paid in advance 61,434,895.66 968,244.00 69,492,604.59 338,244.00
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 24,047,955.09 121,858,120.22 27,781,691.68 106,997,618.63
Financial assets purchased
under agreements to resell
Inventories 236,923,419.99 205,006,377.50
Non-current assets due within 1
5,000,000.00 5,000,000.00
year
Other current assets
Total current assets 371,621,706.56 128,312,869.83 397,760,179.54 140,485,941.10
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 243,312,508.68 243,312,509.68
Investing property
Fixed assets 106,769,718.16 100,807,478.55 110,872,936.68 103,288,925.43
Construction in progress
Engineering materials 54,526.00 54,526.00 54,526.00 54,526.00
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 65,689,405.53 65,689,405.53 66,441,172.05 66,441,172.05
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 7,768,297.00 2,326,388.27 10,056,556.18 5,048,816.11
Other non-current assets 820,080.00 865,440.00
Total of non-current assets 181,102,026.69 412,190,307.03 188,290,630.91 418,145,949.27
Total assets 552,723,733.25 540,503,176.86 586,050,810.45 558,631,890.37
Current liabilities:
Short-term borrowings 114,499,960.00 99,499,960.00 158,500,000.00 143,500,000.00
English Translation for Reference Only
Borrowings from Central Bank
Customer bank deposits and
due to banks and other financial
institutions
Intra-group borrowings
Transactional financial
liabilities
Notes payable
Accounts payable 1,777,341.59 19,442.64 5,208,298.06 19,442.64
Accounts received in advance 125,104.24 39,821.24
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
1,038,881.23 169,494.93 1,316,693.31 163,554.90
payable
Tax payable 3,070,676.93 636,003.44 6,660,913.34 1,460,207.15
Interest payable 75,054,358.10 67,880,933.07 67,636,166.85 61,952,339.22
Dividend payable
Other accounts payable 48,912,426.02 158,329,925.32 34,590,357.22 122,403,842.79
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting
underwriting of securities
Non-current liabilities due
within 1 year
Other current liabilities 99,671.66
Total current liabilities 244,478,748.11 326,535,759.40 274,051,921.68 329,499,386.70
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 244,478,748.11 326,535,759.40 274,051,921.68 329,499,386.70
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share 318,600,000.00 318,600,000.00 318,600,000.00 318,600,000.00
English Translation for Reference Only
capital)
Capital reserves 52,129,496.58 52,129,496.58 52,129,496.58 52,129,496.58
Less: Treasury stock
Specific reserves
Surplus reserves 86,036,260.20 86,036,260.20 86,036,260.20 86,036,260.20
Provisions for general risks
Retained profits -153,038,591.65 -242,798,339.32 -148,604,711.83 -227,633,253.11
Foreign exchange difference
Total equity attributable to owners
303,727,165.13 213,967,417.46 308,161,044.95 229,132,503.67
of the Company
Minority interests 4,517,820.01 3,837,843.82
Total owners’ equity 308,244,985.14 213,967,417.46 311,998,888.77 229,132,503.67
Total liabilities and owners’
552,723,733.25 540,503,176.86 586,050,810.45 558,631,890.37
equity
7.2.2 Income Statement
Prepared by Guangdong Rieys (Group) Company Ltd. Jan.- Jun. 2011 Unit: RMB Yuan
Reporting period Same period of last year
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 46,761,330.11 860,000.00 79,628,557.04 8,823,130.70
Including: Sales income 46,761,330.11 860,000.00 79,628,557.04 8,823,130.70
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 56,285,422.77 12,658,120.77 86,238,589.81 26,560,217.95
Including: Cost of sales 37,676,616.91 800,527.98 56,902,691.96 8,261,093.28
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
51,215.21 58,049.75
charges
Selling and distribution
4,362,334.90 80,000.00 6,538,427.31 86,111.28
expenses
Administrative expenses 11,963,129.37 5,292,367.60 14,330,786.24 7,773,965.87
Financial expenses 9,416,432.67 6,763,717.48 13,225,200.36 11,026,145.09
English Translation for Reference Only
Asset impairment loss -7,184,306.29 -278,492.29 -4,816,565.81 -587,097.57
Add: Gain/(loss) from change in
-92,647.52 -61,863.00
fair value (“-” means loss)
Gain/(loss) from investment
8,168,851.55 69,647.12
(“-” means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means
-1,447,888.63 -11,790,336.65 -6,610,032.77 -17,737,087.25
loss)
Add: non-operating income 72,669.46 20,195.45 58,912.39 16,218.01
Less: non-operating expense 1,870,535.15 672,517.17 811,299.93 781,395.40
Including: loss from non-current
asset disposal
IV. Total profit (“-” means loss) -3,245,754.32 -12,442,658.37 -7,362,420.31 -18,502,264.64
Less: Income tax expense 1,744,300.21 2,722,427.84 4,360,295.57 146,774.39
V. Net profit (“-” means loss) -4,990,054.53 -15,165,086.21 -11,722,715.88 -18,649,039.03
Attributable to owners of the
-4,433,879.82 -15,165,086.21 -11,339,502.78 -18,649,039.03
Company
Minority shareholders’
-556,174.71 -383,213.10
income
VI. Earnings per share
(I) basic earnings per share -0.01 -0.05 -0.04 -0.06
(II) diluted earnings per
-0.01 -0.05 -0.04 -0.06
share
Ⅶ. Other comprehensive incomes
Ⅷ. Total comprehensive incomes -4,990,054.53 -15,165,086.21 -11,722,715.88 -18,649,039.03
Attributable to owners of the
-4,433,879.82 -15,165,086.21 -11,339,502.78 -18,649,039.03
Company
Attributable to minority
-556,174.71 -383,213.10
shareholders
For any business combination under the same control that occurred in the reporting
period, the combined party realized zero net profit before the combination.
7.2.3 Cash Flow Statement
Prepared by Guangdong Rieys (Group) Company Ltd. Jan.- Jun. 2011 Unit: RMB Yuan
Reporting period Same period of last year
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating
activities:
Cash received from sale of
67,771,192.12 26,000.00 63,775,418.69 18,175,347.80
commodities and rendering of
English Translation for Reference Only
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 3,186,428.37 7,107,735.16
Other cash received relating to
49,006,525.69 19,993,386.44 77,564,525.41 50,806,436.58
operating activities
Subtotal of cash inflows from
119,964,146.18 20,019,386.44 148,447,679.26 68,981,784.38
operating activities
Cash paid for goods and
64,949,089.65 48,850,254.47 4,064,128.79
services
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 8,417,833.35 604,983.20 12,872,850.17 1,447,760.61
Various taxes paid 2,339,987.17 863,525.80 5,222,764.97 3,200,184.38
English Translation for Reference Only
Other cash payment relating to
22,323,010.74 781,866.54 41,253,713.03 28,489,276.12
operating activities
Subtotal of cash outflows from
98,029,920.91 2,250,375.54 108,199,582.64 37,201,349.90
operating activities
Net cash flows from operating
21,934,225.27 17,769,010.90 40,248,096.62 31,780,434.48
activities
II. Cash flows from investing
activities:
Cash received from withdrawal
5,000,000.00 5,000,000.00 2,000,000.00 2,000,000.00
of investments
Cash received from return on
investments
Net cash received from disposal
of fixed assets, intangible assets 52,000.00 52,000.00 2,600.00
and other long-term assets
Net cash received from disposal
of subsidiaries or other business 1.00 1.00
units
Other cash received relating
108,547.06 69,647.12
to investing activities
Subtotal of cash inflows
5,160,548.06 5,121,648.12 2,002,600.00 2,000,000.00
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 1,922,931.00 630,000.00 4,228,920.71 3,818,240.63
long-term assets
Cash paid for investment 5,733,379.63 2,884,671.88
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business
units
Other cash payments relating to
174,067.95
investing activities
Subtotal of cash outflows from
7,830,378.58 3,514,671.88 4,228,920.71 3,818,240.63
investing activities
Net cash flows from investing
-2,669,830.52 1,606,976.24 -2,226,320.71 -1,818,240.63
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
English Translation for Reference Only
borrowings
Cash received from issuance
of bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from
financing activities
Repayment of borrowings 44,000,040.00 44,000,040.00 28,583,227.30 22,765,595.39
Cash paid for interest
expenses and distribution of 844,000.00 844,000.00 1,004,468.57 152,501.00
dividends or profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating
to financing activities
Sub-total of cash outflows from
44,844,040.00 44,844,040.00 29,587,695.87 22,918,096.39
financing activities
Net cash flows from financing
-44,844,040.00 -44,844,040.00 -29,587,695.87 -22,918,096.39
activities
IV. Effect of foreign exchange
rate changes on cash and cash
equivalents
V. Net increase in cash and cash
-25,579,645.25 -25,468,052.86 8,434,080.04 7,044,097.46
equivalents
Add: Opening balance of
30,095,398.06 28,150,078.47 2,168,571.06 647,412.49
cash and cash equivalents
VI. Closing balance of cash and
4,515,752.81 2,682,025.61 10,602,651.10 7,691,509.95
cash equivalents
English Translation for Reference Only
7.2.4 Consolidated Statement of Changes in Owners’ Equity
Prepared by Guangdong Rieys (Group) Company Ltd. For the first half year of 2011 Unit: RMB Yuan
Amount for the reporting period Amount for the previous year
Equity attributable to owners of the Company Equity attributable to owners of the Company
Paid-up Minorit Paid-up Minorit
Total Total
Items capital Less: Specifi Genera y capital Less: Specifi Genera y
Capital Surplus Retaine owners’ Capital Surplus Retaine owners’
(or treasur c l risk Others interest (or treasur c l risk Others interest
reserve reserve d profit equity reserve reserve d profit equity
share y stock reserve reserve s share y stock reserve reserve s
capital) capital)
318,60 -148,60 311,99 318,60 -107,41 355,37
I. Balance at the end of the 52,129, 86,036, 3,837,8 52,129, 86,036, 6,024,2
0,000.0 4,711.8 8,888.7 0,000.0 7,698.7 2,287.2
previous year 496.58 260.20 43.82 496.58 260.20 29.17
0 3 7 0 2 3
Add: change of accounting
policy
Correction of errors in
previous periods
Other
318,60 -148,60 311,99 318,60 -107,41 355,37
II. Balance at the beginning 52,129, 86,036, 3,837,8 52,129, 86,036, 6,024,2
0,000.0 4,711.8 8,888.7 0,000.0 7,698.7 2,287.2
of the year 496.58 260.20 43.82 496.58 260.20 29.17
0 3 7 0 2 3
III. Increase/ decrease of
-4,433, 679,97 -3,753, -41,187 -2,186, -43,373
amount in the year (“-”
879.82 6.19 903.63 ,013.11 385.35 ,398.46
means decrease)
-4,433, -556,17 -4,990, -41,187 -2,186, -43,373
(I) Net profit
879.82 4.71 054.53 ,013.11 385.35 ,398.46
(II) Other comprehensive
English Translation for Reference Only
incomes
-4,433, -556,17 -4,990, -41,187 -2,186, -43,373
Subtotal of (I) and (II)
879.82 4.71 054.53 ,013.11 385.35 ,398.46
(III) Capital paid in and
reduced by owners
1. Capital paid in by
owners
2. Amounts of
share-based payments
recognized in owners’ equity
3. Others
(IV) Profit distribution
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to
owners (or shareholders)
4. Other
(V) Internal carry-forward
of owners’ equity
1. New increase of
capital (or share capital) from
capital public reserves
2. New increase of
capital (or share capital) from
English Translation for Reference Only
surplus reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
1,236,1 1,236,1
(Ⅶ) Other
50.90 50.90
318,60 -153,03 308,24 318,60 -148,60 311,99
52,129, 86,036, 4,517,8 52,129, 86,036, 3,837,8
IV. Closing balance 0,000.0 8,591.6 4,985.1 0,000.0 4,711.8 8,888.7
496.58 260.20 20.01 496.58 260.20 43.82
0 5 4 0 3 7
7.2.5 Statement of Change in Owners’ Equity of the Company
Prepared by Guangdong Rieys (Group) Company Ltd. For the first half year of 2011 Unit: RMB Yuan
Amount for the reporting period Amount for the previous year
Paid-up Paid-up
Less: General Total Less: General Total
Items capital Capital Specific Surplus Retained capital Capital Specific Surplus Retained
treasury risk owners’ treasury risk owners’
(or share reserve reserve reserve profit (or share reserve reserve reserve profit
stock reserve equity stock reserve equity
capital) capital)
I. Balance at the end of the 318,600,0 52,129,49 86,036,26 -227,633, 229,132,5 318,600,0 52,129,49 86,036,26 -179,949, 276,816,6
previous year 00.00 6.58 0.20 253.11 03.67 00.00 6.58 0.20 154.38 02.40
Add: change of accounting
policy
English Translation for Reference Only
Correction of errors in
previous periods
Other
II. Balance at the beginning 318,600,0 52,129,49 86,036,26 -227,633, 229,132,5 318,600,0 52,129,49 86,036,26 -179,949, 276,816,6
of the year 00.00 6.58 0.20 253.11 03.67 00.00 6.58 0.20 154.38 02.40
III. Increase/ decrease of
-15,165,0 -15,165,0 -47,684,0 -47,684,0
amount in the year (“-”
86.21 86.21 98.73 98.73
means decrease)
-15,165,0 -15,165,0 -47,684,0 -47,684,0
(I) Net profit
86.21 86.21 98.73 98.73
(II) Other comprehensive
incomes
-15,165,0 -15,165,0 -47,684,0 -47,684,0
Subtotal of (I) and (II)
86.21 86.21 98.73 98.73
(III) Capital paid in and
reduced by owners
1. Capital paid in by
owners
2. Amounts of
share-based payments
recognized in owners’ equity
3. Others
(IV) Profit distribution
1. Appropriations to
surplus reserves
2. Appropriations to
English Translation for Reference Only
general risk provisions
3. Appropriations to
owners (or shareholders)
4. Other
(V) Internal carry-forward
of 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
318,600,0 52,129,49 86,036,26 -242,798, 213,967,4 318,600,0 52,129,49 86,036,26 -227,633, 229,132,5
IV. Closing balance
00.00 6.58 0.20 339.32 17.46 00.00 6.58 0.20 253.11 03.67
English Translation for Reference Only
7.3 Notes to the financial statements
7.3.1 Should there be any changes in accounting policies, accounting estimates and
correction of accounting errors, give the relevant contents, reasons and the amount
influenced.
□Applicable √Inapplicable
7.3.2 Should there be any changes in consolidation scope of the financial statements,
explain the reasons and amount influenced.
√Applicable □Inapplicable
Earnings about RMB 6.90 million were generated from an equity transfer deal.
7.3.3 If a non-standard auditor’s report is issued, list notes to relevant matters.
□Applicable √Inapplicable
