The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
Guangdong Rieys Group Company Ltd.
The First Quarterly Report 2012
§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 will shoulder individual and joint responsibility for the factuality, accuracy and
completeness of the contents of this report.
1.2 The Financial Report in the First Quarterly Report has not been audited by a CPA firm.
1.3 Chen Hongcheng, principal of the Company, and Zhou Yuhua, chief of the accounting work and
chief of the accounting organ (chief of accounting), hereby declare that they would guarantee the
authenticity and completeness of the Financial Report in this Quarterly Report.
English version for reference only. Should there be any discrepancy between the two versions, the
Chinese version shall prevail.
§2 Company Profile
2.1 Main accounting data and financial indices
Unit: RMB Yuan
31 Mar. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (Yuan) 540,787,828.74 537,999,020.83 0.52%
Owner’s equity attributable to shareholders of
322,605,981.95 329,546,077.42 -2.11%
listed company (Yuan)
Share capital (Share) 318,600,000.00 318,600,000.00 0.00%
Net assets per share attributable to shareholders
1.01 1.03 -1.94%
of listed company (Yuan/share)
Jan.-Mar. 2012 Jan.-Mar. 2011 Increase/decrease (%)
Revenues (Yuan) 4,005,530.44 22,872,741.74 -82.49%
Net profit attributable to shareholders of listed
-6,940,095.47 -9,402,249.89 -26.19%
company (Yuan)
Net cash flow arising from operating activities
4,903,404.99 1,442,617.26 239.90%
(Yuan)
Net cash flow per share arising from operating
0.02 0.005 300.00%
activities (Yuan/share)
Basic earnings per share (Yuan/share) -0.02 -0.03 -33.33%
Diluted earnings per share (Yuan/share) -0.02 -0.03 -33.33%
Weighted average ROE (%) -2.13% -3.13% 1.00%
Weighted average ROE after deducting
-2.12% -2.97% 0.85%
non-recurring gains and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Amount from the year-begin to the
Items of non-recurring gains and losses Notes (if applicable)
end of reporting period
Other gains and losses that fit the definition of non-recurring gains and
3,959.00
losses
Other non-operating incomes and expenses other than the items above -41,169.59
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The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
Total -37,210.59 -
2.2 Total number of shareholders at the end of the reporting period and statement on shares held by
the top ten shareholders with shares not subject to trading moratorium
Unit: Share
Total number of shareholders at the end of the
14,766
reporting period
The top ten shareholders holding shares not subject to trading moratorium
Full name of shareholders Tradable shares held at period-end Type of share
SU YOU HE 5,782,741 Domestically listed foreign share
ZHENG SU XIAN 1,721,318 Domestically listed foreign share
XU HAI 1,493,201 Domestically listed foreign share
LUO DONG HUI 1,441,200 Domestically listed foreign share
NGAI KWOK PAN 1,145,816 Domestically listed foreign share
CHEN JIAN SHENG 1,017,797 Domestically listed foreign share
CAI HAN CHUAN 913,400 Domestically listed foreign share
KE ZHONG FENG 789,800 Domestically listed foreign share
HAN LIANG 741,458 Domestically listed foreign share
WANG YI PING 707,213 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
Items in the balance Increase/decrease
Closing balance Opening balance Explanation
sheet (%)
Increase of pre-sale
Monetary funds 2,499,055 1,600,750 56.12
income from real estate
Transactional financial Fair value changes of
16,539 12,580 31.47
assets stocks
Greater effort in
Accounts receivable 5,828,183 13,966,564 -58.27 collecting goods
payments
Accounts received in Increase of pre-sale
42,308,830 14,393,199 193.95
advance income from real estate
The garment export
Payroll payable 500,268 769,813 -35.01
business was cut down.
Items in the income Increase/decrease
Jan.-Mar. 2012 Jan.-Mar. 2011 Explanation
statement (%)
The garment export
Operating revenues 4,005,530.44 22,872,741.74 -82.49
business was cut down.
The garment export
Operating costs 3,484,417.74 18,383,988.74 -81.05
business was cut down.
The garment export
Operating expenses 460,848.32 2,344,397.05 -80.34
business was cut down.
Financial expenses 2,259,609.78 4,982,459.76 -54.65 Decrease of bank loans
Asset impairment loss -5,695.32 -89,477.25 -93.63 Bad-debt provisions
Gains and losses on 3,959.00 172,716.48 -97.71 Fair value changes of
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The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
fair value changes stocks
Investment income 0.00 108,547.06 -100.00
3.2 The progress of significant events and its influence, as well as the analysis and explanation on
solutions
3.2.1 Non-standard audit opinion
√Applicable □Inapplicable
ASIA (Group) Accounting Firm issued an unqualified audit report with pinpointed matters for the
2011 Annual Financial Report of the Company. The said pinpointed matters were stated mainly as
follows: “In the year 2011, the net profit attributable to owners of the Company stood at RMB
21,385,000 and at RMB -18,335,500 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, and it planned to withdraw from the garment industry step by step. The
Company took a series of improvement measures, but there still existed a significant uncertainty
about the going-concern ability of the Company.”
The Board of Directors believed that the recent loss of the Company was mainly because: a. The
real estate project could not reach settlement within the reporting period despite the fact that a
pre-sale permission was already secured for the project; and b. The Company gradually cut down
the size of its garment business so as to ensure the real estate projects. During the reporting period,
the Company continued to enhance real estate development and reached a strategic cooperation
agreement with the Shenzhen branch of China Construction Bank Co., Ltd.. After years of
adjustment, the Company’s asset and business quality has been greatly improved, and the
going-concern ability of the Company has been further improved.
3.2.2 Whether the Company provided funds to the controlling shareholder or its related parties or
provided guarantees to external parties in violation of the prescribed procedure
□Applicable √Inapplicable
3.2.3 Signing and execution of significant contracts concerning routine operations
□Applicable √Inapplicable
3.2.4 Others
□Applicable √Inapplicable
3.3 Fulfillment of commitments made by the Company, shareholders and the actual controller
Commitments made by the Company, its directors, supervisors, senior executives, shareholders with
a shareholding over 5%, actual controller and other stakeholders in the reporting period or such
commitments carried down into the reporting period
□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 reporting 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
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The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
From year-begin to the end Same period of last
Increase/decrease（%）
of the next reporting period year
Estimated accumulative net
-1,300.00 -443.00 Increase 193.45%
profit (RMB’0000)
Basic earnings per share
-0.04 -0.01 Increase 300.00%
(Yuan/share)
Currently, the Company is mainly engaged in real estate development and garment making.
Loss is expected for the forecast period is mainly because: a. Since its transformation in
Notes to performance 2009, the Company gradually cut down its garment business to support its real estate
forecast business; and b. Due to a long cycle of real estate development, although a pre-sale
permission has been secured for the real estate project, the project cannot reach settlement
within the forecast period.
3.5 Other significant events that need to be explained
3.5.1 Securities investment
√Applicable □Inapplicable
Unit: RMB Yuan
Proportion to
total
Holding Gains/losses
Serial Type of Short form Initial register Book value as securities
Stock code shares as at during reporting
number securities of stock capital (Yuan) at period-end investment as
period-end period
at 31 Mar.
2011 (%)
*ST
1 Stock 000607 Huazhi 20,276.00 3,700 16,539.00 100.00% -3,737.00
Holding
Other holding shares of securities investment as at
0.00 - 0.00 0.00% 0.00
period-end
Gains and losses from sale of securities investment
- - - - 0.00
during the reporting period
Total 20,276.00 - 16,539.00 100% -3,737.00
Explanations to the securities investment
With the purpose of increasing the utilization efficiency of idle capital, decision-making and approval for the securities
investment was conducted in accordance with powers and procedures at all management tiers. The investment was of a
small amount and a limited profit, which would have little influence on the Company’s business performance for the
reporting period.
3.5.2 Interviews, communications and visits in the reporting period
Main discussion and materials
Time Place Way of reception Type of visitor Visitor
provided by the Company
4 Jan. 2012 Office By phone Individual Investor Debt restructuring
5 Jan. 2012 Office By phone Individual Investor Debt restructuring
15 Mar. 2012 Office By phone Individual Investor Would the “ST” be removed?
Time for the disclosure of 2011
27 Mar. 2012 Office By phone Individual Investor Annual Report and First
Quarterly Report 2012
3.6 Investment in derivative products
□Applicable √Inapplicable
3.6.1 Derivative products held at the end of reporting period
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The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
□Applicable √Inapplicable
§4 Appendix
4.1 Balance sheet
Prepared by Guangdong Rieys Group Company Ltd 31 Mar. 2012 Unit: RMB (Yuan)
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 2,499,054.62 492,972.51 1,600,749.63 1,338,922.68
Settlement reserves
Lendings to banks and other
financial institutions
Transactional financial assets 16,539.00 16,539.00 12,580.00 12,580.00
Notes receivable
Accounts receivable 5,828,182.71 13,966,563.54
Accounts paid in advance 89,120,705.64 75,651,517.03 0.00
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 27,237,819.6 136,219,491.23 26,986,296.29 139,930,122.27
Financial assets purchased
under agreements to resell
Inventories 286,562,623.03 289,509,255.07
Non-current assets due within 1
year
Other current assets
Total current assets 411,264,924.6 136,729,002.74 407,726,961.56 141,281,624.95
Non-current assets:
Entrusted loans and advances
granted
Available-for-sale financial
assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 243,312,508.68 243,312,508.68
Investing property
Fixed assets 91,696,661.03 86,238,823.25 92,277,519.10 87,099,643.70
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 28,225,068.51 28,225,068.51 28,393,365.57 28,393,365.57
R&D expense
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The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
Goodwill
Long-term deferred expenses
Deferred income tax assets 8,919,528.60 2,390,839.13 8,919,528.60 2,390,839.13
Other non-current assets 627,120.00 627,120.00
Total of non-current assets 129,522,904.14 360,221,765.57 130,272,059.27 361,250,883.08
Total assets 540,787,828.74 496,950,768.31 537,999,020.83 502,532,508.03
Current liabilities:
Short-term borrowings 69,699,960.00 54,699,960.00 73,699,960.00 58,699,960.00
Borrowings from Central Bank
Customer bank deposits and
due to banks and other financial
institutions
Borrowings from banks and
other financial institutions
Transactional financial
liabilities
Notes payable
Accounts payable 8,172,558.01 19,442.64 10,754,430.15 19,442.64
Accounts received in advance 42,308,830.24 14,393,199.24
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
500,267.58 175,099.53 769,812.94 160,277.69
payable
Tax payable 3,459,299.96 647,817.43 4,404,960.44 1,476,139.73
Interest payable 38,054,395.58 29,954,573.23 35,818,609.17 28,205,955.32
Dividend payable
Other accounts payable 51,508,150.93 175,330,741.93 64,116,263.43 173,882,257.74
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
Total current liabilities 213,703,462.30 260,827,634.76 203,957,235.37 262,444,033.12
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 213,703,462.30 260,827,634.76 203,957,235.37 262,444,033.12
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The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
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
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 -134,159,774.83 -220,642,623.23 -127,219,679.36 -216,677,281.87
Foreign exchange difference
Total equity attributable to owners
322,605,981.95 236,123,133.55 329,546,077.42 240,088,474.91
of the Company
Minority interests 4,478,384.49 4,495,708.04
Total owners’ equity 327,084,366.44 236,123,133.55 334,041,785.46 240,088,474.91
Total liabilities and owners’
540,787,828.74 496,950,768.31 537,999,020.83 502,532,508.03
equity
4.2 Income statement
Prepared by Guangdong Rieys Group Company Ltd Jan.-Mar. 2012 Unit: RMB (Yuan)
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Total operating income 4,005,530.44 22,872,741.74 417,000.00
Including: operating income 4,005,530.44 22,872,741.74 417,000.00
Interest income
Premium income
Handling charges and
commissions
II. Total cost of sales 10,925,738.87 3,929,300.36 32,004,851.73 7,287,597.04
Including: Cost of sales 3,484,417.74 18,383,988.74 400,263.99
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
40,234.73
charges
Selling expenses 460,848.32 2,344,397.05 80,000.00
Administrative expenses 4,726,558.35 2,177,299.60 6,343,248.70 3,306,208.83
Financial expenses 2,259,609.78 1,752,000.76 4,982,459.76 3,501,124.22
Impairment loss -5,695.32 0.00 -89,477.25
Add: gain from change in fair
3,959.00 3,959.00 172,716.48 70,745.00
value (“-” means loss)
Gain from investment (“-” 108,547.06 69,647.12
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The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
means loss)
Including: income form
investment on affiliated enterprise
and jointly enterprise
Foreign exchange difference
(“-” means loss)
III. Business profit (“-” means
-6,916,249.43 -3,925,341.36 -8,850,846.45 -6,730,204.92
loss)
Add: non-operation income 39,995.46 20,195.45
Less: non-business expense 41,169.59 40,000.00 796,895.48 672,515.50
Including: loss from
non-current asset disposal
IV. Total profit (“-” means loss) -6,957,419.02 -3,965,341.36 -9,607,746.47 -7,382,524.97
Less: Tax expense
V. Net profit (“-” means loss) -6,957,419.02 -3,965,341.36 -9,607,746.47 -7,382,524.97
Attributable to owners
-6,940,095.47 -3,965,341.36 -9,402,249.89 -7,382,524.97
of the Company
Minority interest -17,323.55 -205,496.58
VI. Earnings per share
(I) Basic earnings per
-0.02 -0.01 -0.03 -0.02
share
(II) Diluted earnings per
-0.02 -0.01 -0.03 -0.02
share
VII. Other comprehensive income
VIII. Total comprehensive income -6,957,419.02 -3,965,341.36 -9,607,746.47 -7,382,524.97
Attributable to owners
-6,940,095.47 -3,965,341.36 -9,402,249.89 -7,382,524.97
of the Company
Attributable to minority
-17,323.55 0.00 -205,496.58
shareholders
Where there were business combinations under the same control in the reporting period, the
combined parties achieved net profits of RMB 0.00 before the combinations.
4.3 Cash flow statement
Prepared by Guangdong Rieys Group Company Ltd Jan.-Mar. 2012 Unit: RMB (Yuan)
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating
activities:
Cash received from sale of
commodities and rendering of 40,058,862.13 42,572,139.93
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
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The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
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 borrowings
from banks and other financial
institutions
Net increase of funds in
repurchase business
Tax refunds received 2,000,000.00 3,186,428.37
Other cash received relating to
3,100,072.08 11,561,468.37 329,184.07 612,265.97
operating activities
Subtotal of cash inflows from
45,158,934.21 11,561,468.37 46,087,752.37 612,265.97
operating activities
Cash paid for goods and
34,396,611.36
services
Net increase of customer
16,369,358.07
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 2,012,370.55 471,243.27 4,192,045.35 444,105.17
Various taxes paid 931,891.66 836,285.14 2,054,017.14 853,244.73
Other cash payment relating to
20,941,908.94 7,099,890.13 4,002,461.26 2,298,514.60
operating activities
Subtotal of cash outflows
40,255,529.22 8,407,418.54 44,645,135.11 3,595,864.50
from operating activities
Net cash flows from operating
4,903,404.99 3,154,049.83 1,442,617.26 -2,983,598.53
activities
II. Cash flows from investing
activities:
Cash received from disposal of
5,000,000.00 5,000,000.00
investments
Cash received from return on
investments
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets
Net cash received from disposal
of subsidiaries or other business
units
Other cash received relating to
137,189.17 87,976.00
investing activities
Subtotal of cash inflows from
5,137,189.17 5,087,976.00
investing activities
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The First Quarterly Report 2012 of Guangdong Rieys Group Company Ltd.
Cash paid to acquire fixed
assets, intangible assets and other 5,100.00 1,509,612.00 630,000.00
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
investing activities
Subtotal of cash outflows from
5,100.00 7,242,991.63 3,514,671.88
investing activities
Net cash flows from investing
-5,100.00 -2,105,802.46 1,573,304.12
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
borrowings
Cash received from issuance
of bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from
financing activities
Repayment of borrowings 4,000,000.00 4,000,000.00 21,000,000.00 21,000,000.00
Cash paid for interest
expenses and distribution of 417,000.00 417,000.00
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
4,000,000.00 4,000,000.00 21,417,000.00 21,417,000.00
financing activities
Net cash flows from financing
-4,000,000.00 -4,000,000.00 -21,417,000.00 -21,417,000.00
activities
IV. Effect of foreign exchange
rate changes on cash and cash
equivalents
V. Net increase in cash and cash
898,304.99 -845,950.17 -22,080,185.20 -22,827,294.41
equivalents
Add: Cash and cash
1,600,749.63 1,338,922.68 30,095,398.06 28,150,078.47
equivalents at year-begin
VI. Cash and cash equivalents at
2,499,054.62 492,972.51 8,015,212.86 5,322,784.06
the period-end
4.4 Auditor’s report
Auditor’s opinion: un-audited
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