Guangdong Rieys Group Company Ltd
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)
1
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.
3
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
5
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
6
IV. Appendix
(I) Financial statements
Consolidated statements or not?
√ Yes □ No □ Inapplicable
The currency unit for data of the financial statements below is RMB Yuan unless otherwise specified.
1. Consolidated balance sheet
Prepared by Guangdong Rieys Group Company Ltd.
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 9,898,084.56 1,600,749.63
Settlement reserves
Intra-group lendings
Transactional financial assets 12,580.00
Notes receivable
Accounts receivable 8,458,695.43 13,966,563.54
Accounts paid in advance 123,129,985.35 75,651,517.03
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividend receivable
Other accounts receivable 13,551,208.31 26,986,296.29
Financial assets purchased under
agreements to resell
Inventories 352,499,822.68 289,509,255.07
Non-current assets due within 1 year
Other current assets
Total current assets 507,537,796.33 407,726,961.56
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
Investing property
Fixed assets 89,289,133.36 92,277,519.10
Construction in progress
Engineering materials 54,526.00 54,526.00
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 27,888,474.39 28,393,365.57
R&D expense
7
Goodwill
Long-term deferred expenses 627,120.00 627,120.00
Deferred income tax assets 9,537,830.10 8,919,528.60
Other non-current assets
Total of non-current assets 127,397,083.85 130,272,059.27
Total assets 634,934,880.18 537,999,020.83
Current liabilities:
Short-term borrowings 63,199,960.00 73,699,960.00
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 2,837,444.27 10,754,430.15
Accounts received in advance 198,000,835.72 14,393,199.24
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 630,083.27 769,812.94
Tax payable 3,398,762.88 4,404,960.44
Interest payable 41,929,939.09 35,818,609.17
Dividend payable
Other accounts payable 12,746,363.83 64,116,263.43
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 322,743,389.06 203,957,235.37
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 0.00 0.00
Total liabilities 322,743,389.06 203,957,235.37
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 318,600,000.00 318,600,000.00
Capital reserves 52,129,496.58 52,129,496.58
Less: Treasury stock
Specific reserves
8
Surplus reserves 86,036,260.20 86,036,260.20
Provisions for general risks
Retained profits -148,993,181.04 -127,219,679.36
Foreign exchange difference
Total equity attributable to owners of the
307,772,575.74 329,546,077.42
Company
Minority interests 4,418,915.38 4,495,708.04
Total owners’ (or shareholders’) equity 312,191,491.12 334,041,785.46
Total liabilities and owners’ (or
634,934,880.18 537,999,020.83
shareholders’) equity
Legal representative: Chen Hongcheng Person-in-charge of the accounting work: Zhou Yuhua
Chief of the accounting division: Zheng Guangde
2. Balance sheet of the Company
Prepared by Guangdong Rieys Group Company Ltd.
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 6,876,742.63 1,338,922.68
Transactional financial assets 12,580.00
Notes receivable
Accounts receivable
Accounts paid in advance
Interest receivable
Dividend receivable
Other accounts receivable 118,520,198.19 139,930,122.27
Inventories
Non-current assets due within 1 year
Other current assets
Total current assets 125,396,940.82 141,281,624.95
Non-current assets:
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 84,495,521.75 87,099,643.70
Construction in progress
Engineering materials 54,526.00 54,526.00
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 27,888,474.39 28,393,365.57
R&D expense
Goodwill
Long-term deferred expenses
9
Deferred income tax assets 2,424,916.73 2,390,839.13
Other non-current assets
Total of non-current assets 358,175,947.55 361,250,883.08
Total assets 483,572,888.37 502,532,508.03
Current liabilities:
Short-term borrowings 48,199,960.00 58,699,960.00
Transactional financial liabilities
Notes payable
Accounts payable 19,442.64 19,442.64
Accounts received in advance
Employee’s compensation payable 151,861.60 160,277.69
Tax payable 646,854.05 1,476,139.73
Interest payable 32,850,426.24 28,205,955.32
Dividend payable
Other accounts payable 173,558,385.28 173,882,257.74
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 255,426,929.81 262,444,033.12
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 0.00 0.00
Total liabilities 255,426,929.81 262,444,033.12
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 318,600,000.00 318,600,000.00
Capital reserves 52,129,496.58 52,129,496.58
Less: Treasury stock
Specific reserves
Surplus reserves 86,036,260.20 86,036,260.20
Provisions for general risks
Retained profits -228,619,798.22 -216,677,281.87
Foreign exchange difference
Total owners’ (or shareholders’) equity 228,145,958.56 240,088,474.91
Total liabilities and owners’ (or
483,572,888.37 502,532,508.03
shareholders’) equity
Legal representative: Chen Hongcheng Person-in-charge of the accounting work: Zhou Yuhua
Chief of the accounting division: Zheng Guangde
3. Consolidated income statement for the reporting period
Prepared by Guangdong Rieys Group Company Ltd.
Unit: RMB Yuan
10
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total operating revenues 14,400.00 28,631,955.27
Including: Sales income 14,400.00 28,631,955.27
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 7,430,622.30 34,214,917.08
Including: Cost of sales 21,616,352.97
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 charges 1,400.00
Selling and distribution expenses 128,774.66 606,491.12
Administrative expenses 5,451,897.62 4,304,286.97
Financial expenses 1,808,237.34 7,788,524.55
Asset impairment loss 40,312.68 -100,738.53
Add: Gain/(loss) from change in fair value
-3,404.00 89,761.52
(“-” means loss)
Gain/(loss) from investment (“-”
5,093.38 313,876.62
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) -7,414,532.92 -5,179,323.67
Add: non-operating income 7,310.23
Less: non-operating expense 805,456.87 -52,474.08
Including: loss from non-current
asset disposal
IV. Total profit (“-” means loss) -8,219,989.79 -5,119,539.36
Less: Income tax expense 849,066.46
V. Net profit (“-” means loss) -8,219,989.79 -5,968,605.82
Including: Net profit achieved by
combined parties before the combinations
Attributable to owners of the
-8,203,309.24 -5,978,817.14
Company
Minority shareholders’ income -16,680.55 10,211.32
VI. Earnings per share -- --
(I) Basic earnings per share -0.03 -0.02
(II) Diluted earnings per share -0.03 -0.02
VII. Other comprehensive incomes
VIII. Total comprehensive incomes -8,219,989.79 -5,968,605.82
11
Attributable to owners of the
-8,203,309.24 -5,968,605.82
Company
Attributable to minority shareholders -16,680.55 10,211.32
Where business mergers under the same control occurred in this reporting period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
Legal representative: Chen Hongcheng Person-in-charge of the accounting work: Zhou Yuhua
Chief of the accounting division: Zheng Guangde
4. Income statement of the Company for the reporting period
Prepared by Guangdong Rieys Group Company Ltd.
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total sales 14,400.00 417,000.00
Less: cost of sales 400,263.99
Business taxes and surcharges 1,400.00
Distribution expenses 80,000.00
Administrative expenses 2,139,001.20 2,290,430.39
Financial costs 1,359,625.25 6,422,944.22
Impairment loss 136,310.38 -278,492.29
Add: gain/(loss) from change in fair
-3,404.00 58,977.00
value (“-” means loss)
Gain/(loss) from investment (“-”
5,093.38 50,722.60
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) -3,483,937.07 -8,586,939.00
Add: non-business income
Less: non-business expense 776,750.00 100.00
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) -4,260,687.07 -8,587,039.00
Less: income tax expense 14,744.25
IV. Net profit (“-” means loss) -4,260,687.07 -8,601,783.25
V. Earnings per share -- --
(I) Basic earnings per share -0.02 -0.03
(II) Diluted earnings per share -0.02 -0.03
VI. Other comprehensive income
VII. Total comprehensive income -4,260,687.07 -8,601,783.25
Legal representative: Chen Hongcheng Person-in-charge of the accounting work: Zhou Yuhu
Chief of the accounting division: Zheng Guangde
5. Consolidated income statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Guangdong Rieys Group Company Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total operating revenues 7,632,317.19 75,393,285.38
Including: Sales income 7,632,317.19 75,393,285.38
12
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 29,243,771.24 90,500,339.85
Including: Cost of sales 5,242,728.04 59,292,969.88
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 charges 1,400.00 51,215.21
Selling and distribution expenses 886,319.16 4,968,826.02
Administrative expenses 14,570,208.84 16,267,416.34
Financial expenses 6,036,337.35 17,204,957.22
Asset impairment loss 2,506,777.85 -7,285,044.82
Add: Gain/(loss) from change in fair
0.00 -2,886.00
value (“-” means loss)
Gain/(loss) from investment (“-”
5,093.38 8,482,728.17
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) -21,606,360.67 -6,627,212.30
Add: non-operating income 1,401.20 79,979.69
Less: non-operating expense 863,636.37 1,818,061.07
Including: loss from non-current
asset disposal
IV. Total profit (“-” means loss) -22,468,595.84 -8,365,293.68
Less: Income tax expense -618,301.50 2,593,366.67
V. Net profit (“-” means loss) -21,850,294.34 -10,958,660.35
Including: Net profit achieved by
combined parties before the combinations
Attributable to owners of the Company -21,773,501.68 -10,412,696.96
Minority shareholders’ income -76,792.66 -545,963.39
VI. Earnings per share -- --
(I) Basic earnings per share -0.07 -0.03
(II) Diluted earnings per share -0.07 -0.03
VII. Other comprehensive incomes
VIII. Total comprehensive incomes -21,850,294.34 -10,958,660.35
Attributable to owners of the
-21,773,501.68 -10,412,696.96
Company
Attributable to minority shareholders -76,792.66 -545,963.39
Where business mergers under the same control occurred from 1 Jan. 2012 to 30 Sept. 2012, the net profit achieved by the merged
parties before the business mergers was RMB 0.
13
Legal representative: Chen Hongcheng Person-in-charge of the accounting work:Zhou Yuhua
Chief of the accounting division: Zheng Guangde
6. Income statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Guangdong Rieys Group Company Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total sales 14,400.00 1,277,000.00
Less: cost of sales 1,200,791.97
Business taxes and surcharges 1,400.00
Distribution expenses 80,000.00
Administrative expenses 6,388,609.01 7,582,797.99
Financial costs 4,653,514.86 13,186,661.70
Impairment loss 136,310.38 -278,492.29
Add: gain/(loss) from change in fair
0.00 -2,886.00
value (“-” means loss)
Gain/(loss) from investment (“-”
5,093.38 120,369.72
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) -11,160,340.87 -20,377,275.65
Add: non-business income 496.92 20,195.45
Less: non-business expense 816,750.00 672,617.17
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) -11,976,593.95 -21,029,697.37
Less: income tax expense -34,077.60 2,737,172.09
IV. Net profit (“-” means loss) -11,942,516.35 -23,766,869.46
V. Earnings per share -- --
(I) Basic earnings per share -0.04 -0.07
(II) Diluted earnings per share -0.04 -0.07
VI. Other comprehensive income
VII. Total comprehensive income -11,942,516.35 -23,766,869.46
Legal representative: Chen Hongcheng Person-in-charge of the accounting work:Zhou Yuhua
Chief of the accounting division: Zheng Guangde
7. Consolidated cash flow statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Guangdong Rieys Group Company Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities
198,670,809.79 105,292,182.82
and rendering of 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
14
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 5,400,000.00 6,586,428.37
Other cash received relating to operating
12,475,593.57 90,067,664.71
activities
Subtotal of cash inflows from operating
216,546,403.36 201,946,275.90
activities
Cash paid for goods and services 122,344,522.80 123,091,462.09
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 5,511,137.77 11,526,570.72
Various taxes paid 1,759,213.15 2,837,268.51
Other cash payment relating to operating
15,617,895.80 25,440,290.80
activities
Subtotal of cash outflows from operating
145,232,769.52 162,895,592.12
activities
Net cash flows from operating activities 71,313,633.84 39,050,683.78
II. Cash flows from investing activities:
Cash received from withdrawal of
12,580.00 16,708,535.70
investments
Cash received from return on
5,093.38
investments
Net cash received from disposal of fixed
assets, intangible assets and other 143,130.00 175,000.00
long-term assets
Net cash received from disposal of
1.00
subsidiaries or other business units
Other cash received relating to investing
activities
Subtotal of cash inflows from investing
160,803.38 16,883,536.70
activities
Cash paid to acquire fixed assets,
640,465.37 2,210,675.00
intangible assets and other long-term assets
Cash paid for investment 11,306,351.02
15
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 investing
640,465.37 13,691,093.97
activities
Net cash flows from investing activities -479,661.99 3,192,442.73
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
13,000,000.00
activities
Subtotal of cash inflows from financing
13,000,000.00 0.00
activities
Repayment of borrowings 10,500,000.00 64,500,040.00
Cash paid for interest expenses and
1,216,500.00
distribution of dividends or profit
Including: dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments relating to
65,036,636.92
financing activities
Sub-total of cash outflows from financing
75,536,636.92 65,716,540.00
activities
Net cash flows from financing activities -62,536,636.92 -65,716,540.00
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
8,297,334.93 -23,473,413.49
equivalents
Add: Opening balance of cash and cash
1,600,749.63 30,095,398.06
equivalents
VI. Closing balance of cash and cash
9,898,084.56 6,621,984.57
equivalents
Legal representative: Chen Hongcheng Person-in-charge of the accounting work:Zhou Yuhua
Chief of the accounting division: Zheng Guangde
8. Cash flow statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Guangdong Rieys Group Company Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities
14,400.00 26,000.00
and rendering of service
Tax refunds received
Other cash received relating to operating
73,474,852.82 78,409,396.28
activities
Subtotal of cash inflows from operating
73,489,252.82 78,435,396.28
activities
16
Cash paid for goods and services
Cash paid to and for employees 1,064,516.76 851,193.74
Various taxes paid 855,345.48 875,650.87
Other cash payment relating to operating
3,512,607.09 42,375,668.65
activities
Subtotal of cash outflows from operating
5,432,469.33 44,102,513.26
activities
Net cash flows from operating activities 68,056,783.49 34,332,883.02
II. Cash flows from investing activities:
Cash received from retraction of
12,580.00 10,767,498.51
investments
Cash received from return on
5,093.38
investments
Net cash received from disposal of fixed
assets, intangible assets and other 52,000.00
long-term assets
Net cash received from disposal of
1.00
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
17,673.38 10,819,499.51
activities
Cash paid to acquire fixed assets,
636,350.00
intangible assets and other long-term assets
Cash paid for investment 5,667,367.79
Net cash paid to acquire subsidiaries and
other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from investing
0.00 6,303,717.79
activities
Net cash flows from investing activities 17,673.38 4,515,781.72
III. Cash Flows from Financing Activities:
Cash received from capital
contributions
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to
13,000,000.00
financing activities
Subtotal of cash inflows from financing
13,000,000.00 0.00
activities
Repayment of borrowings 10,500,000.00 64,500,040.00
Cash paid for interest expenses and
1,216,500.00
distribution of dividends or profit
Other cash payments relating to
65,036,636.92
financing activities
Sub-total of cash outflows from financing
75,536,636.92 65,716,540.00
activities
Net cash flows from financing activities -62,536,636.92 -65,716,540.00
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
5,537,819.95 -26,867,875.26
equivalents
17
Add: Opening balance of cash and
1,338,922.68 28,150,078.47
cash equivalents
VI. Closing balance of cash and cash
6,876,742.63 1,282,203.21
equivalents
Legal representative: Chen Hongcheng Person-in-charge of the accounting work:Zhou Yuhua
Chief of the accounting division: Zheng Guangde
(II) Audit report
Auditor’s opinion
Summary of audit report
18
