Guangdong Rieys Group Company Ltd
Abstract of the Third Quarterly Report 2012
I. Important Notes
The Board of Directors, the Supervisory Committee, 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 take individual and/or joint responsibility
for the authenticity, accuracy and completeness of all contents set forth herein.
Except for the following directors, the other directors all attend the board session on reviewing the third quarterly
report 2012 by person.
Name of absent director Position of absent director Reason of abstention Name of entrusted person
Su Jianlong Independent director For the other work Liu Yong
Chen Honghai Director For the other work Ding Lihong
Chen Hongcheng, person in charge of the Company, Zhou Yuhua, person in charge of the accounting work, Zheng
Guangde, person in charge of the accounting organ (chief accountant) hereby confirmed that the Financial Report
enclosed in the quarterly report is true and complete.
II. Company Profile
（I）Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
□ Yes √ No □ Inapplicable
30 Sept. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (RMB Yuan) 634,934,880.18 537,999,020.83 18.017%
Owners’ equity attributable to
shareholders of the Company 307,772,575.74 329,546,077.42 -6.6%
(RMB Yuan)
Share capital (share) 318,600,000.00 318,600,000.00 0%
Net assets per share
attributable to shareholders of
0.966 1.034 -6.57%
the Company (RMB
Yuan/share)
YoY increase/decrease YoY increase/decrease
Jul.-Sept. 2012 Jan.-Sept. 2012
(%) (%)
Gross operating revenues
14,400.00 -99.95% 7,632,317.19 -89.88%
(RMB Yuan)
Net profit attributable to
shareholders of the Company -8,203,309.24 37.2% -21,773,501.68 109.1%
(RMB Yuan)
Net cash flow from operating
-- -- 71,313,633.84 82.61%
activities (RMB Yuan)
Net cash flow per share from
operating activities (RMB -- -- 0.22 83.33%
Yuan/share)
Basic EPS (RMB Yuan/share) -0.03 50% -0.07 133%
Diluted EPS (RMB
-0.03 50% -0.07 133%
Yuan/share)
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Weighted average ROE (%) -2.63% -0.64% -6.83% -3.39%
Weighted average ROE after
deducting non-recurring gains -2.38% -0.22% -6.57% 0.26%
and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Amount during
Item Jan.-Sept. 2012 (RMB Notes
Yuan)
Gains and losses on disposal of non-current assets
Tax rebate, reduction or exemption due to un-authorized
approval or the lack of formal approval documents
Government grants recognized in the current year, except
for those acquired in the ordinary course of business or
granted at certain quotas or amounts according to the
country’s unified standards
Capital occupation fees received from non-financial
enterprises that are included in current gains and losses
Gains generated when the investment costs of the
Company’s acquiring subsidiaries, associates and joint
ventures are less than the fair value of identifiable net assets
in the investees attributable to the Company in the
acquisition of the investments
Exchange gains and losses of non-monetary assets
Gains and losses through entrusting others to invest or
manage assets
Various asset impairment provisions due to acts of God such
as natural disasters
Gains and losses on debt restructuring
Enterprise reorganization expenses, such as expenses on
employee settlement and integration
Gains and losses on the parts exceeding the fair value when
prices of transactions become unfair
Net current gains and losses from the period-begin to the
combination date of subsidiaries due to business
combinations under the same control
Gains and losses on contingent matters which are irrelevant
to the normal operation of the Company
Gains and losses on fair value changes of transactional
financial assets and liabilities, and investment gains on
disposal of transactional financial assets and liabilities and 5,093.38
available-for-sale financial assets, except for the effective
hedging business related to the Company’s normal operation
Reversal of impairment provisions for accounts receivable
which are separately tested for impairment signs
Gains and losses on entrustment loans from external parties
Gains and losses on fair value changes of investing
properties for which the fair value method is adopted for
subsequent measurement
Current gain and loss effect due to a just-for-once
adjustment to current gains and losses according to
requirements of taxation and accounting laws and
regulations
Custodian fee income from entrusted operations with the
Company
Other non-operating incomes and expenses besides the -816,253.08
2
items above
Other gain and loss items that meet the definition of
non-recurring gains and losses
Minority interests effects
Income tax effects
Total -811,159.70 --
“Other gain and loss items that meet the definition of non-recurring gains and losses” & non-recurring gain and
loss items recognized as recurring gain and loss items according to the natures and characteristics of the
Company’s normal business
Involved amount (RMB
Item Notes
Yuan)
（II）Total number of shareholders and top 10 shareholders at the period-end
Total number of shareholders 14,241
Particulars about shares held by the top ten shareholders holding tradable shares
Number of tradable shares held Type and number of shares
Name of shareholder
at period-end Type Number
Domestically listed foreign
SU YOU HE 7,146,255 7,146,255
shares
SHANGHAI HONG KONG
Domestically listed foreign
INTERNATIONAL 2,094,769 2,094,769
shares
SECURITIES LIMITED
Domestically listed foreign
ZHENG SU XIAN 1,706,500 1,706,500
shares
Domestically listed foreign
LUO DONG HUI 1,441,200 1,441,200
shares
Domestically listed foreign
XU HAI 1,350,400 1,350,400
shares
NGAI KWOK PAN(WEI GUO Domestically listed foreign
1,145,816 1,145,816
BIN) shares
Domestically listed foreign
CAI HAN CHUAN 1,097,737 1,097,737
shares
Domestically listed foreign
CHEN JIAN SHENG 1,017,797 1,017,797
shares
Domestically listed foreign
KE ZHONG FENG 828,800 828,800
shares
Domestically listed foreign
HAN LIANG 741,458 741,458
shares
Particulars about shareholders
III. Significant Events
（I）Significant changes in major accounting data, financial highlights and reasons for these
changes
√Applicable □Inapplicable
Monetary funds increased 518.34% due to the increase of real estate pre-sale income.
Transactional financial assets decreased 100% due to the disposal of some transactional financial assets.
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Accounts receivable decreased 39.44% due to more effort in collecting payments.
Other receivables decreased 49.78% due to real estate development.
Prepayments increased 62.76% due to real estate development.
Accounts received in advance increased 1,275.66% due to the increase of real estate pre-sale income.
Accounts payable decreased 73.62% due to the cutdown of garment export.
Other payables decreased 80.12% due to the debt repayments to the majority shareholder.
Operating revenues decreased 89.88% due to the cutdown of garment export.
Operating costs decreased 91.16% due to the cutdown of garment export.
Operating expenses decreased 82.16% due to the cutdown of garment export.
Financial expenses decreased 64.92% due to the decrease of bank loans.
Asset impairment loss decreased 134.41% due to some bad-debt provisions.
Gains decreased 100% due to the disposal of transactional financial assets.
Investment income decreased 99.94% due to the disposal of transactional financial assets.
（II）Progress of significant events and its influence, as well as the analysis and explanation on
solutions
1. About 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 as, “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.
Despite a series of improvement measures taken by the Company, there still existed uncertainty about the
going-concern ability of the Company.
The Board of Directors believes that upon adjustments of recent years, the quality of the Company’s business and
assets has improved greatly and the Company has now a certain degree of ability for sustained operation. To be
specific, ① According to the set goals, the Company gradually cuts down the garment business and concentrates
resources on real estate, which has produced some good results. The Company’s real estate projects are
proceeding well. The presale permission was obtained at the end of 2011 and some real estate units are expected
to be accomplished and generate profit for the Company before the end of 2012; ② In the first half of 2012, the
Company adopted a proactive and proper manner in dealing with overdue bank loans and accumulatively repaid
bank loans of RMB 9.50 million. It has entered into a strategic cooperation agreement with the Shenzhen branch
of China Construction Bank. It will solve the overdue bank loan problem based on the actual situation; ③ There
are a lot of real estate projects available for choice under the current macro-economic situation and the Company
will carry out project extension under the discreet principle.
2. The Company offers capital to the controlling shareholder or its related parties or provides
external guarantees in violation of the prescribed procedures.
□Applicable √Inapplicable
3. Signing and execution of significant contracts concerning routine operation
□Applicable √Inapplicable
4. Others
√Applicable □Inapplicable
4
The Company has applied for share trading suspension since 31 Jul. 2012 due to a significant event. During the
period of share trading suspension, the Company’s operation situation is normal. Currently, the Company is still
discussing a significant event, and the share trading will be resumed after disclosing relevant announcements. The
Company will strictly perform relevant duties on information disclosure.
（III）Commitments of the Company or shareholders with an over 5% shareholding made in or carried
down into the reporting period
□Applicable √Inapplicable
（IV）Predict the 2012 annual operating results
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 reporting period compared with the same period of the last year
according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
（V）Other significant events that need to be explained
1. Securities investment
√Applicable □Inapplicable
Proportion in
Number of
Initial Closing the total Gain/loss in
shares held at
Serial Variety of Code of Abbr. of investment carrying closing the reporting
the
No. securities securities securities amount amount securities period (RMB
period-end
(RMB Yuan) (RMB Yuan) investment Yuan)
(Share)
amount (%)
1 Stock 000607 HZKG 20,239.00 0 0.00 0% 5,093.38
Other securities investments held at the period-end 0.00 -- 0.00 0% 0.00
Gain/loss on selling securities in the reporting period -- -- -- -- 5,093.38
Total 20,239.00 -- 0.00 100% 5,093.38
Disclosure date of the board announcement of securities
investment approval
Disclosure date of the general meeting announcement of
securities investment approval
Notes to securities investment:
2. Investments in derivatives
□Applicable √Inapplicable
3. Derivative investments held at the period-end
□Applicable √Inapplicable
4. Researches, visits and interviews received in the reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided
by the Company
6 Jul. 2012 Office Communication by Individual Investor Sales status of real
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telephone estate of the
Company
Inquiring about
Communication by whether the
24 Jul. 2012 Office Individual Investor
telephone Company exists the
delisting risk or not?
Inquiring about
Communication by
26 Jul. 2012 Office Individual Investor relevant situation on
telephone
B-share market
Inquiring about
Communication by
26 Jul. 2012 Office Individual Investor relevant situation on
telephone
B-share market
Whether the
Company
management team
pays attention to the
Communication by
30 Jul. 2012 Office Individual Investor issue on the
telephone
Company’s stocks
down with their
daily limit
successively or not?
Inquiring about how
the Company will
Communication by
30 Jul. 2012 Office Individual Investor solve the problems
telephone
arising in B-share
market
Inquiring about the
Communication by Company’s share
31 Jul. 2012 Office Individual Investor
telephone trading suspension
event
Inquiring about
whether the higher
Communication by authority issues
9 Aug. 2012 Office Individual Investor
telephone relevant plan for
B-share problems or
not?
Inquiring about the
Communication by progress of the
21 Aug. 2012 Office Individual Investor
telephone Company ’s
significant events
Inquiring about the
Communication by progress of the
4 Sept. 2012 Office Individual Investor
telephone Company ’s
significant events
Inquiring about the
Company’s share
Communication by
25 Sept. 2012 Office Individual Investor trading resumption
telephone
time and operating
situation
5. Corporate bonds issued
Any corporate bonds issued?
□ Yes √ No
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