石家庄宝石电子玻璃股份有限公司2009 年半年度报告
石家庄宝石电子玻璃股份有限公司
SHIJIAZHUANG BAOSHI ELECTRONIC GLASS COMPANY LIMITED
Semi-annual Report
2009
（Full text）
Stock code: 000413, 200413
Stock abbreviation: Baoshi A, Baoshi B
Date of disclosure:：August 22, 2009石家庄宝石电子玻璃股份有限公司2009 年半年度报告
Important notes
The Board of Directors and the directors, Supervisory Committee and supervisors and Senior
Executives of the Company hereby warrant that there are no misstatement, misleading
representation or important omissions in this report and shall assume joint and several liability
for the authenticity, accuracy and completeness of the contents hereof.
The Board chairman of the Company Mr. Shang Jianbin, General manager Mr. Song Hongbo and chief
accountant Mr. Zhou Yumao represent and warrant the financial report in this semi-annual report is true and
complete.
The financial report of the semi-annual report has not been audited.
Table of Contents
Section I Basic Information about the Company
Section II Highlights of Financial Data and Indicators
Section III Change of Share Capital and Shareholding of Principal
Shareholders
Section IV Directors, Supervisors and Senior Executives
Section V Discussion and Analysis of the Management
Section VI Important Events
Section VII Financial Report (Unaudited)
Section VIII Documents Available for Inspection
Attaching: Financial Report石家庄宝石电子玻璃股份有限公司2009 年半年度报告
Section I Basic Information about the Company
I. Statutory name of the Company
In Chinese: 石家庄宝石电子玻璃股份有限公司
In English: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
Abbreviation of English name: SJZBS
II．Stock Exchange for Listing: Shenzhen Stock Exchange
Stock Abbreviation: Baoshi A, Baoshi B
Stock Code: 000413, 200413
III．Registered address: 9 Huanghe Road, Shijiazhuang High-tech Industrial Development
Area, Shijiazhuang, Hebei Province
Office address: 9 Huanghe Road, Shijiazhuang High-tech Industrial Development Area,
Shijiazhuang, Hebei Province
Zip Code: 050035
E-mail: bs@bseg.cn
IV．Legal Representative:Shang Jianbin
V. Secretary of the Board of Directors: Fu Yinfang
Securities affair representative: Wang Hua
Contact address: 9 Huanghe Road, Shijiazhuang High-tech Industrial Development Area,
Shijiazhuang, Hebei Province(the Law Securities Dept. of the Company)
Tel:0311-86917771,86917776 Fax:0311-86917775
E-mail:bsdz@heinfo.net
VI．Newspapers for Information Disclosure: China Securities Daily, Hong Kong Commercial
Daily Website designated by CSRC for publishing annual report: http://www.cninfo.com.cn
The place for preparing and placing Semiannual report: Law Securities Dept. of the Company
VII. Other relevant information:
1. The date when and the place where the Company made its first registration: December 26,
1992 Shijiazhuang City
2. Registration No. of Business License of Enterprise Legal : 130000000001040
3. Tax Registration No.: 130111104395983
4. Organization Code：10439598-3
5. The name of the Certified Public Accountants engaged by the Company:
Zhongxi Certified Public Accountants Co., Ltd.
Office address: Room 422, Capital Time Piaza, No.88. Changan Street West, Beijing.
Section II Highlights of Financial Data and Indicators
I. Highlights of financial data and indicators
1. Highlights of financial data and indicators
Unit：RMB
End of report year
At the end of last
year
Increase/decreas
e（％）
Total assets 392,628,825.37 406,383,398.21 -3.38%
Owners’ equity attributable to shareholders
of the listed company
243,937,868.26 249,362,994.84 -2.18%
Share capital 383,000,000.00 383,000,000.00 0.00%石家庄宝石电子玻璃股份有限公司2009 年半年度报告
Net assets per share attributable to
shareholders of the listed
company(RMB/share)
0.64 0.65 -1.54%
In the report period
(From January-June)
The same period of
last year
Increase/decreas
e（％）
Total operating income 34,106,277.10 125,343,482.09 -72.79%
Operating profit -5,236,952.02 4,292,238.66 -222.01%
Total profit -5,237,052.02 4,291,938.66 -222.02%
Net profit attributable to shareholders of the
listed company
-5,425,126.58 3,173,852.12 -270.93%
Net profit attributable to shareholders of the
listed company after deducting
non-recurring gains and losses
-5425051.58 3,283,914.88 -265.20%
Basic earnings per share(RMB/share) -0.0142 0.0083 -271.08%
Diluted earnings per share(RMB/share) -0.0142 0.0083 -271.08%
Return on equity（%） -2.22% 1.66% Decreased 3.88%
Net cash flow arising from operating
activities
-12,701,177.07 -8,841,270.33 0.00%
Net cash flow per share arising from
operating activities (RMB/share)
-0.033 -0.023 -44%
2. Items of non-recurring gains and losses deducted
Items Amount（RMB）
Non-operating expense -100
Impact on the amount of Income tax 25
Total -75
II.The net profit calculated pursuant to Chinese accounting standards and International
Accounting Standards (IAS) and the notes to the net profit difference
On Septermber 12, 2009, CSRC issued the Circular about Issues Concerning Audit of
Companies Issuing Domestically Listed Foreign Investment Shares. According to the circular,
the requirement of dual audit, i.e., a company issuing domestically listed foreign investment
shares should be subject to overseas audit while retaining a certified public accountants' firm
with securities-related qualification for audit, in information disclosure code previously
promulgated would be cancelled from the issue day of the circular. The Company did not
prepare financial report under international accounting standards from 2007. The financial
report of the Company was prepared according to Chinese Accounting Standards for Business
Enterprises. So there was no difference arising from domestic and international accounting
standards in the report period.
Section III Change of Share Capital and Shareholding of Principal Shareholders
I. Particulars schedule of change in share capital
(1)The total number and the structure of the shares of the Company remained unchanged in
the report period.
II. Particulars of shareholder (As of June 30, 2009)
(1) Particulars about shares held by shareholders石家庄宝石电子玻璃股份有限公司2009 年半年度报告
Unit：Shares
Total number of shareholders
The Company had 23，240 registered shareholders
in total, including 12，657 shareholders holding A
shares and 10，583 shareholders holding B shares.
Particulars about the shareholding of the top ten shareholders
Name of shareholder Properties of
shareholder
Proportion
(%)
Quantity of
shares held
Conditional
shares
Pledged
or frozen
Shijiazhuang Baoshi Electronic Group
Co., Ltd.
State-owned
Legal person
50.27% 192,517,208 192,469,208 0
Merchants Securities Hongkong Co.,
Ltd.
Foreign legal
person
1.16% 4,438,370 0 0
LI LEON ZHAN WEI
Foreign
natural person
0.77% 2,948,600 0 0
Zhang Wenying
Domestic
natural person
0.57% 2,195,386 0 0
Feng Jia
Domestic
natural person
0.52% 2,000,000 0 0
Chen Lihong
Foreign
natural person
0.47% 1,807,184 0 0
Chen Qianfen
Foreign
natural person
0.41% 1,555,591 0 0
Bo Haowen
Foreign
natural person
0.37% 1,411,200 0 0
Xiang Li
Domestic
natural person
0.35% 1,357,474 0 0
CITRINE CAPITAL LIMITED
Foreign legal
person
0.35% 1,332,319 0 0
Top 10 holders of unconditional shares
Name of the shareholder Unconditional shares Type of shares
Merchants Securities Hongkong Co.,
Ltd.
4,438,370
Foreign shares placed in
domestic exchange
LI LEON ZHAN WEI 2,948,600
Foreign shares placed in
domestic exchange
Zhang Wenying 2,195,386 RMB Common shares
Feng Jia 2,000,000 RMB Common shares
Chen Lihong 1,807,184
Foreign shares placed in
domestic exchange
Chen Qianfen 1,555,591
Foreign shares placed in
domestic exchange
Bo Haowen 1,411,200
Foreign shares placed in
domestic exchange
Xiang Li 1,357,474 RMB Common shares
CITRINE CAPITAL LIMITED 1,332,319
Foreign shares placed in
domestic exchange
Hong Ying 1,309,700
Foreign shares placed in
domestic exchange
Notes to the related relationship between
the top ten shareholders or their
concerted action
Among the top ten shareholders as listed above, there exists no
associated relationship among the shareholders of legal person
share. The relation between the top ten shareholders was
unknown. It was unknown whether they are persons taking
concerted action specified in Regulations on the Information
Disclosure of the Change of Shareholding of Shareholders of
Listed Companies.
2．Shareholding changes in shareholders who hold 5% of the shares of the company.石家庄宝石电子玻璃股份有限公司2009 年半年度报告
In the report period, the shareholder holding 5% of the shares of the company is Shijiazhuang
Baoshi Electronics Group Co., Ltd., holding 192,517,208 shares of the company, of which:
the shares with sale limit conditions are 192,469,208 shares, there is no change comparing
with the period beginning. The shares with unrestricted negotiable shares are 48,000 shares,
1,445,501shares decrease than those at period beginning;Reason for change: Sale of
1,445,501 unrestricted negotiable shares of the Company through centralized bidding system
of Shenzhen Stock Exchange.
3 .The equity of non-current shareholders in the top 10 shareholders and the conditions for
limit on sale.
Particulars Date when trading allowed
of subscription conditions
Name of conditions holder
Shares with
conditioned
subscription
Date when trading
allowed
Newly added
tradable shares
Conditions
Shijiazhuang Baoshi Electronic
Group Co., Ltd.
192469208
Notes1
March 30, 2009
Notes3
192469208
Notes 2
Notes 1：At the end of the report period, the amount of limited-sale shares held by does not
include the amount of other prepaid shares the non-tradable shareholders shall repay.
Notes 2：The shares shall not be listed, traded or assigned within 12 months from the date of
implementation of the plan for share holding structure reform. Upon the expiration of the said
commitment period, the proportion of the quantity of original shares traded through stock
exchange to the total shares of the Company shall not exceed 5% within 12 months and 10%
within 24 months.
Notes 3：The Company settled the procedure of unfreezing of restricted shares in July 2009.
192469208 restricted shares held by Shijiazhuang Baoshi Electronic Group Co., Ltd. were
listed for trading from July 23, 2009.
III. Change of the controlling shareholder and actual controller of the Company
There was no change in the Company’s controlling shareholder during the Report Period.
The controlling shareholder of the above-mentioned largest shareholder Baoshi Group. Is
China Great Wall Asset Management Co.，Ltd. But Shijiazhuang State-owned Assets
Committee is in charge for supervising Baoshi Group., Shijiazhuang State-owned Assets
Committee is our company‘s actual controller.
Section IV Particulars about Directors, Supervisors, Senior Executives and
Staff of the Company
1. In the report period, the shares of the Company held by the directors, supervisors and senior
executives of the Company remained unchanged.
2. In the report period, other directors, supervisors and senior Senior Executives and
Staff of the company did not have any changes.
V.Discussion and Analysis of the Management
I．Brief analysis of the operating results and financial position (pursuant to consolidated石家庄宝石电子玻璃股份有限公司2009 年半年度报告
financial statements)
Unit：RMB
Items
January-June
2009
January-June 2008 Increase/decrease
of rate (%)
Operating income 34,106,277.10 125,343,482.09 -72.79
Operating cost 29,332,065.08 108,970,569.90 -73.08
Financial expenses 407,775.72 628,612.28 -35.13
Loss of devaluation of assets 0.00 -82,928.32 100.00
Operating profit -5,236,952.02 4,292,238.66 -222.01
Income tax expenses 385,864.09 1,315,167.76 -70.66
Net profit -5,425,126.58 3,173,852.12 -270.93
Cash received from sales of goods and supply of
labor 25,222,016.21 114,868,548.51 -78.04
Other business related cash receipts 652,843.42 1,099,373.08 -40.62
Cash paid for purchase of goods and reception of
labor services 26,998,343.18 115,161,968.61 -76.56
Taxes paid 5,932,886.50 2,260,021.92 162.51
Net cash flows arising from operating activities -12,701,177.07 -8,841,270.33 -43.66
Net increase of cash and cash equivalents -12,739,107.14 -9,173,429.33 -38.87
Items June 30, 2009 December 31, 2008
Increase/decrease
of rate (%)
Monetary funds 4,768,595.88 17,507,703.02 -72.76
Other receivable 29,125,067.39 21,083,142.20 38.14
Bill payable 2,318,326.90 1,082,099.08 114.24
Account payable 11,957,505.66 21,823,254.90 -45.21
Taxes payable -1,710,593.76 -579,123.63 -195.38
1. Operating income and operating cost decrease year on year due to no relevant business
income and cost in current period after the transfer of power business to the Group in
September 2008 and decrease of business scale of Component Branch Factory and Glass Tube
Branch Factory of the Company.
2. Financial expenses decreased due to decrease of bill discount interests.
3. Asset impairment loss changed due to no provision for asset impairment loss and no
writeback of such provision in current period.
4. Operating profit and net profit decreased due to lowering of profit making level of the
Company's main operation.
5. Income tax expenses decreased due to lowering of the Company's profitability.
6. Cash received from sales of goods and rendering of services and cash paid for goods and
services decreased due to decrease of relevant collection of operating income and payment of
operating cost after the transfer of power business to the Group in September 2008.
7. Other cash received relating to operating activities decreased year on year due to decrease
of income on waste materials in current period.
8. Taxes and levies paid increased and taxes and levies payable decreased due to increase of
actually paid value added tax caused by small amount of value added tax retained for setoff at
the beginning of this year.
9. Net cash flows from operating activities decreased due to year-on-year decrease of income石家庄宝石电子玻璃股份有限公司2009 年半年度报告
from main operation and collection of the Company.
10. Net increase in cash and cash equivalents and monetary capital decreased due to
year-on-year decrease of operating income and collection of the Company.
11. Other receivables increased due to increase of accounts receivable from the Group
Company.
12. Bills payable increased due to delay of payment for goods.
13. Accounts payable decreased due to decrease of power cost payable after the transfer of
power business to the Group in September 2008.
II. Business Highlights in the Report Period
(1). The scope and status of its key business
The Company is engaged in the electronic parts and components industry, mainly in the
manufacturing and sales of electronic vacuum glass devices and supporting electronic parts
and components. Export of the self-produced products of the Company and the import of
mechanical equipment, parts and components, raw and auxiliary materials needed by the
Company.
Facing the adverse influence of apparent economic slowdown and scant demand brought by
international financial crisis, continuous shrinkage of CRT market, continuous rise of energy
and power price, rise in price of raw materials and unceasing lowering of selling price of
products, the board of directors and management adhered to, practiced and implemented the
principle of scientific development, pooled the wisdom and efforts of everyone, tapped
potential, reduced consumption, developed market and actively dealt with various difficulties
and challenges so as to guarantee normal production and operation of the Company.
In the report period, the Company produced 10.153 million pins and 1.257 million anode caps
and L-35 glass tubes was 887.93 tons respectively. sold 17.0229 million pins and 1.6653
million anode caps and L-35 glass tubes was 191.37 tons.In the report period, The income
from main operation ,operation profit, net profit and Gross Profit rate of the Company were
RMB 34.1063 million , RMB -5.237 million, RMB-5.2371 million and 18.55%. The market
share of the product Pin was around 32%, The market share of the product Anode Cap of the
was around 17% and the market share of the product L-35 Glass Tubes was around 80%.
(2). Particulars of main operation
（1）Table of the status of main operation in terms of indusrry business :
In terms of
business line
Income from main
operation
Cost of main
operation
Gross
profit
ratio
（%）
Increase/decrease
of income from
main operation
over the previous
year (%)
Increase/decrease
of cost of main
operation over the
previous year (%)
Increase or
decrease of
Gross profit
ratio from main
operation over
the previous
year (%)
Kinescope
parts and
components
for color TV
27,761,121.62 22,611,215.19 18.55 -48.53 -44.13
Decreased
6.41%石家庄宝石电子玻璃股份有限公司2009 年半年度报告
In terms of
business
product
Income from main
operation
Cost of main
operation
Gross
profit
ratio
（%）
Increase/decrease
of income from
main operation
over the previous
year (%)
Increase/decrease
of cost of main
operation over the
previous year (%)
Increase or
decrease of
Gross profit
ratio from main
operation over
the previous
year (%)
Kinescope
parts and
components
for color TV
27,761,121.62 22,611,215.19 18.55 -48.53 -44.13
Decreased
6.41%
（2）Table of the status of main operation in terms of area：
In terms of area Income from main operation Increase or decrease (%)
North China 27,761,121.62 -48.53
(3) In the report period, the Company did not conduct other business operation activities
having material influence on the profit for the report period.
（4） In the report period, there existed no net profit impact on the Company from the
investment income of single shareholding companies, reaching over 10%.
（5）Operating questry and solve project
In the report period, The market demand of CRT continued to shrink and energy price kept
unceasingly rose. The environment for the Company's production and operation was still grim.
Facing austere business environment, the board of directors and management of the Company
coolly and scientifically analyzed the situation of CRT industry, paid close attention to the
production and operation status of the enterprises in the same industry, strengthened recovery
of payment for goods and avoided bad debts while developing domestic and international
markets, decreased operation risks to the greatest extent and guaranteed cash flow to maintain
existence, deeply tap internal potential, conducted strict management, reduced cost, improved
process, developed new products and enhanced competitiveness of products. They strived to
seize the good opportunity brought by national policy of sending color TV to the countryside,
closely followed downstream manufacturing enterprises, developed marketable new products
and did their best to widen sale and increase earnings.
The Company's Glass Tube Branch Factory continued to make great efforts to enhance
product quality and qualification rate, actively developed domestic and foreign markets and
consolidated its leading position in respect of quality at home and abroad to win market with
its own advantages. Component Branch Factory took development of new products as its first
task for this year's development, established a special R&D organ, strengthened technical
force and invested lot of manpower, material resources and financial resources to make new
breakthrough in respect of new product development.
(3). Investment of the Company in the report period
(1). The Company did not raise funds in the report period. The funds raised previously were
not carried forward into the report period for utilization.
(2). There were no important investment projects utilizing non-raised funds in the report石家庄宝石电子玻璃股份有限公司2009 年半年度报告
period.
(4) Neither the company publicly disclosed the profit forecast nor the business plan of this
year.
(5) The warning of possible losses for the period from the beginning of the year to the end of
the next report period on accumulative basis or great change of accumulative net profit
compared with she same period of the previous year and the explanation of reasons.
Forenotice of earnings
Loss
Year beginning to end of next
report period
Same period of the
previous year
Increase or decrease (%)
Estimated amount of
accumulative net
profit(RMB’0000)
-1150 377.34 Decreased 404.76
Basic earnings per
share（Yuan/shares）
-0.03 0.0099 Decreased 403.03
Notes for change in
earnings
(1)CRT market continuously shrank and the price of energy, power and raw materials was kept
on high level while the price of the Company's products was low. According to the preliminary
calculation by the Finance Dept. of the Company, the Company will suffer loss for the third
quarter of 2009.(2) This forenotice of earnings has not been pre-audited by
certified public accountants. （3）The earnings are forecast according to the current market
condition and the Company's production and operation status. If the fundamental factors of the
industry or the Company change, the accuracy of this forenotice of earnings may be affected.
Section VI Important Events
1. Particulars about corporate governance
In the report period, Strictly according to the requirements of relevant laws and regulations
and regulatory documents including the Company Law, the Securities Law and the Articles of
Association of the Company, the Company unceasingly standardized its corporate governance
structure, improved internal control system, made efforts to enhance its operation quality, risk
prevention and control ability and corporate governance level and seriously performed the
obligation of information disclosure so as to make its internal governance more effective.
2. 2008 annual general meeting of the Company held on April 28, 2009 adopted 2008 profit
distribution plan of neither distributing profit nor capitalizing part of capital common reserve
fund.
3. The Company planned neither to distribute profit nor to capitalize capital surplus for the
interim period of 2009.
4. There were no material lawsuits or arbitration in the report period.石家庄宝石电子玻璃股份有限公司2009 年半年度报告
5. In the report period, the Company had no other investments.
6. In the report Period, the Company had no major events of acquisition & sale of assets and
assets restructuring during the report period or before the period but continued to this report
period
7. Material related transactions
(1). The related transactions in respect of purchase and sales of commodities and provision of
labor service
Related parties
Contents of
transactions
Transaction
amount
(RMB)
Pricing
principle
Mode of
settlement
Proporti
on of the
same
kind of
transacti
on
Influence on the
profit of the
Company
Sales of raw
materials and
Work in
process
22,709,372.88
Make price
and two sides
agreement
Currency
56.91 Profit increase
Provide assets
lease 4,469,787.74
Make price
and two sides
agreement
Currency
100.00 Profit increase
Provide
service
35,000.00
Make price
and two sides
agreement
Currency
0.47 Profit increase
Provide repair
income 59,600.00
Make price
and two sides
agreement
Currency
0.80 Profit increase
Purchase raw
materials
1,103,630.69
Make price
and two sides
agreement
Currency
14.87
Less
Influence
Assets lease
expense of
payable
1,885,000.00
Make price
and two sides
agreement
Currency
100.00
Less
Influence
Purchase
Group power
5,593,485.78
Make price
and two sides
agreement
Currency
100.00
Less
Influence
Baoshi Group
（controlling
shareholder ）
Group service
expense
2,344,945.05
Make price
and two sides
agreement
Currency
100.00
Less
Influence
Sales of raw
materials
and Work in
process 1,996,000.00
Make price
and two sides
agreement
Currency
5.00 Profit increase
Provide repair
income 366,520.64
Make price
and two sides
agreement
Currency
4.948 Profit increase
Electronic Vacuum
Company(Controlled
by the same parent
company)
Lease income
1,102,928.70
Make price
and two sides
agreement
Currency
100.00 Profit increase
Sales of
material and
hydrogen gas 41,794.50
Make price
and two sides
agreement
Currency
100.00 Profit increase
Other Related
parties
Provide repair
income 17,870.00
Make price
and two sides
agreement
Currency
0.24 Profit increase石家庄宝石电子玻璃股份有限公司2009 年半年度报告
2. In the report period, the Company had no related transactions of assets acquisition & sale.
3. The Company was not investment in related transactions caused by assignment of assets
and equity in the report period.
4.The current debts and creditor’s rights between the Company and related parties
（1） Account receivable
Amount Reason of
formation
Influence on the
Company
Shijiazhuang Baoshi Electronic
Vacuum Glass Co., Ltd. 94,685,331.03
Operating creditor’s
rights
Profit increase
Puyang Baoshi Glass Co., ltd. 186,050.75
Operating creditor’s
rights Profit increase
（2）Other receivable
Amount Reason of
formation
Influence on the
Company
Shijiazhuang Baoshi Electrinic Group
Co., Ltd. 4,813,831.89 Operating creditor’s
rights Profit increase
Shijiazhuang Baoshi Electrinic vacuum
Glass Co., Ltd. 5,464,537.29 Operating creditor’s
rights Profit increase
Shijiazhuang Baoshi Large-diameter
plastic tube Co., ltd. 7,472,521.92 Operating creditor’s
rights Profit increase
Shijiazhuang Baoshi Zhonghe Steel
Plastic Shape Co., Ltd. 3,486,557.06 Operating creditor’s
rights Profit increase
Shijiazhuang Baoshi Ruiming Co., Ltd. 510,960.33 Operating creditor’s
rights Profit increase
Shijiazhuang Baodong Electrinic
Co.,Ltd. 725,705.20 Operating creditor’s
rights Profit increase
Hannan Fuyang Baoshi Glass Co., Ltd. 1,066,930.25 Operating creditor’s
rights Profit increase
Operating creditor’s
rights
（3）Other payable
Amount Reason of
formation
Influence on the
Company
Shijiazhuang Baoshi Ruiming Co., Ltd. 410,000.00 Operating creditor’s
rights
Less
Influence
8. Important contracts and their performance
(1). The Company did not hold in trust or contract for or lease the assets of other companies
nor did other companies hold in trust, contract for or lease the assets of the Company in the
report period.
In the report period, The controlling shareholder of the Company operates energy and power
assets of the Company including water, electricity and natural gas under lease and the
Company monthly collects rental expenses Baoshi Group Company. In the report period,
RMB 4.4698 million was collected in total.
(2). The Company did not provide guarantee to others in the report period.
On September 18, 2006, the Company provided guarantee, together with Shijiazhuang Baoshi石家庄宝石电子玻璃股份有限公司2009 年半年度报告
Electronic Group Co., Ltd., for the application of Shijiazhuang Construction Investment Co.,
Ltd. for loan of RMB 70 million) with some land and houses (with appraised value of RMB
30.3018 million) (The valid guarantee value for the Company is RMB 18.80 million). The
guarantee period is one year. The type of guarantee is mortgage guarantee.This guarantee has
expired. In respect of the loss that may occur to the Company due to this guarantee, the
controlling shareholder has made corresponding commitment.
(3) The Company did not entrust others to manage its cash assets in the report period nor
did such entrustment occurred in previous periods continue in the report period.
9. The special statement and independent opinions of the independent directors of the
Company on fund occupation by related parties and external guarantee of the Company
Yu Rengang, Han Zhiguo and Zhang Junhao, the independent directors of the Company,
expressed independent opinions as follows:
We carefully examined and verified the status of the fund transfer between Shijiazhuang
Baoshi Electronic Glass Co., Ltd. and its related parties in the first six months of 2009 and the
guarantee provided by the Company on accumulative basis and in current period. In our
opinion:
1. The fund transfer between Shijiazhuang Baoshi Electronic Glass Co., Ltd. and the
controlling shareholder and other related parties occurred in the first half of 2009 was fund
transfer formed during normal operation.
The amount of balance of accounts receivable between the Company and Electrovaccum
Company, a subsidiary of Baoshi Group Co., controlling shareholder, was big mainly because
Electrovacuum Company failed to timely pay power cost to the Company for reasons in
respect of market, operation, fund, etc. As the energy and power business has been transferred
to Baoshi Group Company, the management of the Company should continue to quicken debt
repayment in respect of the balance of accounts receivable.
2. Since its listing, Shijiazhuang Baoshi Electronic Glass Co., Ltd. has strictly abided by the
Company Law, the Securities Law, Listing Rules and relevant regulations of CSRC. As of the
end of the report period, the accumulative amount of the guarantee provided by the Company
was RMB 18.80 million, which has now expired. In respect of the loss that may occur to the
Company due to this guarantee, Baoshi Group Co. has made corresponding commitment. At
present, the Company's production and operation is in sound condition.
The Company should actively take actions and urge the guaranteed party to repay loans.
In the report period, the Company did not provide guarantee to the controlling shareholder
and its subsidiaries.
10. The commitments made by the Company and shareholders holding over 5% of the total
shares of the Company
In addition to statutory minimum commitment, the controlling shareholder of the Company
Baoshi Group Co. made the following special commitments:
(1) Commitment concerning selling price石家庄宝石电子玻璃股份有限公司2009 年半年度报告
If non-negotiable shares held by it are sold through Shenzhen Stock Exchange within 36
months from the date of obtaining the right of negotiation, the selling price shall not be lower
than RMB 2.5 per share (In case of dividend distribution, bonus share distribution and capital
surplus capitalization, such price shall be treated on ex-right and ex-dividend basis).
If the price of the shares sold through securities exchange within the said term is lower than
RMB 2.5 per share, the proceeds of selling shares shall belong to the Company.
(2) To advance the consideration to be paid by shareholders holding non-negotiable shares
who have not explicitly agreed to the plan
In order to smoothly carry out this share holding structure reform, Baoshi Group Co.
promised to advance the consideration to be paid by the shareholders holding non-negotiable
shares who had not explicitly agreed to the plan as of the stock right registration date for the
implementation of this plan for share holding structure reform for the obtainment of the right
of listing and negotiation of the non-negotiable shares held by such shareholders.
In the report period, Baoshi Group Co., the controlling shareholder of the Company, and other
shareholders holding shares subject to sale restriction strictly fulfilled their commitments
made in the Company's plan for share holding structure reform.
11. The appointment and dismissal of Accounting Firms.
In the report period, The board of directors of the Company has not made a resolution on
appointment of certified public accountants for annual audit for examination at the
shareholders' general meeting of the Company.
12.Punishment and rectification to the Company
In the report period, all the directors, supervisors, senior Senior Executives and Staff of the
Company did not receive inspections, administrative penalties, notices of criticism from
China Securities Regulatory Commission and public condemn from Stock Exchange.
13.Other important events
The Companies held no shares in the unlisted financial enterprises or the companies that was
going to be listed.
14.The Company's acceptance of investigation and research and interview
In the report period, the Company did not accept investigation and research or interview. The
Company answered the questions of personal investors strictly according to the Guidelines of
Shenzhen Stock Exchange for Fair Information Disclosure of Listed Companies and in the
light of the principle of openness, impartiality and fairness. It did not separately disclose its
non-public important information to specific objects in private, in advance or on selection
basis and guaranteed the fairness of information disclosure.
Section VII Financial Reports
1.The financial report of the semi-annual report has not been audited.
2.Accounting statement (Attached hereinafter)
(1)Balance Sheet Profit Statement
(2) Profit statement石家庄宝石电子玻璃股份有限公司2009 年半年度报告
(3)Cash Flow Statement
(4)Statement on changes of owners’equity
3. Notes to Financial Statements (Attached hereinafter)
Section VIII Documents Available for Inspection
1.The original Interim report bearing the signature of the Chairman of the Board of Directors
of the Company;
2.The text of the financial report bearing the seal and signature of the person in charge of the
Company, financial controller and the person in charge of accounting organ
3.The original of all Company’s documents and the original manuscripts of announcements
publicly disclosed on China Securities Daily and Hong Kong Commercial Daily in the report
period.
Shijiazhuang Baoshi Electronic Glass Co., Ltd.
Board chairman:Shang Jianbin
August 22,2009石家庄宝石电子玻璃股份有限公司2009 年半年度报告财务报告
1
Shijiazhuang Baoshi Electronic Glass Co., Ltd.
2009 semi-annual Financial Report
Balance Sheet
Profit Statement
Cash Flow Statement
Statement on changes of owners’equity
Notes to Financial Statements (Attached hereinafter)石家庄宝石电子玻璃股份有限公司2009 年半年度报告财务报告
2
Balance Sheet
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
June 30, 2009 Unit：RMB
Year-end balance Year-beginning balance Items
Consolidation Parent company Consolidation Parent company
Current asset：
Monetary fund 4,768,595.88 4,619,826.74 17,507,703.02 17,328,431.91
Trading financial assets
Bills receivable 1,378,111.88 1,378,111.88 1,340,000.00 1,340,000.00
Account receivable 104,240,962.01 104,240,962.01 102,495,580.45 102,495,580.45
Prepaid fund 691,525.20 691,525.20 968,879.52 968,879.52
Interest receivable
Dividend receivable
Other receivable 29,125,067.39 22,845,267.06 21,083,142.20 15,604,173.07
Inventories 42,810,691.97 42,667,566.85 45,658,214.55 45,515,089.43
Non-current asset due in 1 year
Other current assets 58,609,389.92 609,389.92 58,609,389.92 609,389.92
Total of current asset 241,624,344.25 177,052,649.66 247,662,909.66 183,861,544.30
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 200,000.00 61,369,306.96 200,000.00 61,369,306.96
Property investment
Fixed assets 118,681,450.50 88,947,392.71 126,284,555.73 95,373,209.08
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 12,316,340.26 12,316,340.26 12,479,947.12 12,479,947.12
R & D expense
Goodwill
Long-term expenses to be amortized 7,662,737.75 7,662,737.75 7,612,033.09 7,612,033.09
Differed income tax asset 12,143,952.61 12,143,952.61 12,143,952.61 12,143,952.61
Other non-current asset
Total of non-current asset 151,004,481.12 182,439,730.29 158,720,488.55 188,978,448.86
Total of assets 392,628,825.37 359,492,379.95 406,383,398.21 372,839,993.16
Legal Representative of the Company：Shang Jianbin
Person in charge of accounting organ:Song Hongbo
Person in charge of accounting institutes: Zhou Yumao
Balance sheet（Cont’d.）
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
June 30,2009 Unit：RMB
Year-end balance Year-beginning balance Items
Consolidation Parent company Consolidation Parent company
Current liabilities
Short-term loans
Trade off financial liabilities
Bills payable 2,318,326.90 2,278,327.00 1,082,099.08 1,082,099.08
Account payable 11,957,505.66 9,525,552.15 21,823,254.90 19,351,301.49
Advance Account 1,352,768.85 1,352,768.85 1,294,842.85 1,294,842.85
Employees’ wage payable 5,732,781.57 5,693,352.51 6,180,547.46 6,141,118.40
Tax payable -1,710,593.76 -143,068.24 -579,123.63 941,476.86
Interest payable 13,832,487.11 13,491,081.29石家庄宝石电子玻璃股份有限公司2009 年半年度报告财务报告
3
Dividend payable
Other payable 25,890,928.17 102,603,758.28 24,213,159.28 101,279,989.39
Non-current liability due in
1 year
Other current liability 68,346,000.00 68,346,000.00
Total of current liability 127,720,204.50 121,310,690.55 135,851,861.23 130,090,828.07
Non-current liabilities：
Long-term loan
Bond payable
Long-term payable
Special payable
Expected liabilities
Other non-current
liabilities
5,333,494.31 5,333,494.31
Differed income 165,000.00 165,000.00 165,000.00 165,000.00
Total of non-current
liabilities
5,498,494.31 165,000.00 5,498,494.31 165,000.00
Total of liability 133,218,698.81 121,475,690.55 141,350,355.54 130,255,828.07
Owners’ equity
Share capital 383,000,000.00 383,000,000.00 383,000,000.00 383,000,000.00
Capital reserves 385,190,502.62 355,857,851.87 385,190,502.62 355,857,851.87
Less：Shares in stock
Surplus reserves 27,454,788.05 32,204,150.60 27,454,788.05 32,204,150.60
Common risk provision
Undistributed profit -551,707,422.41 -533,045,313.07 -546,282,295.83 -528,477,837.38
Different of foreign
currency translation
Total of owner’s equity
belong to the parent
company
243,937,868.26 238,016,689.40 249,362,994.84 242,584,165.09
Minor shareholders’
equity
15,472,258.30 15,670,047.83
Total of owners’ equity 259,410,126.56 238,016,689.40 265,033,042.67 242,584,165.09
Total of liabilities and
owners’ equity
392,628,825.37 359,492,379.95 406,383,398.21 372,839,993.16
Legal Representative of the Company：Shang Jianbin
Person in charge of accounting organ:Song Hongbo
Person in charge of accounting institutes: Zhou Yumao
Profit statement
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
January-June 2009 Unit :RMB
Report period Same period of Items the previous year
Consolidation Parent company Consolidation Parent company
I.Income from the key business 34,106,277.10 33,303,645.10 125,343,482.09 124,540,850.09
Incl: Business income 34,106,277.10 33,303,645.10 125,343,482.09 124,540,850.09
Interest income
Insurance fee earned
Fee and commission received
II.Total business cost 39,343,229.12 37,485,156.70 121,051,243.43 119,196,950.72
Incl：Business cost 29,332,065.08 29,191,203.16 108,970,569.90 108,829,707.98石家庄宝石电子玻璃股份有限公司2009 年半年度报告财务报告
4
Business tax and surcharge 379,764.15 379,764.15 446,402.38 446,402.38
Sales expense 691,484.09 691,484.09 837,358.08 837,358.08
Administrative expense 8,532,140.08 7,156,593.85 10,251,229.11 8,896,251.04
Financial expenses 407,775.72 66,111.45 628,612.28 270,159.56
Asset impairment loss -82,928.32 -82,928.32
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss）
Incl: investment gains from affiliates
Gains from currency exchange（“-”for
loss）
III. Operational profit（“-”for loss） -5,236,952.02 -4,181,511.60 4,292,238.66 5,343,899.37
Add：Non-business income
Less：Non business expenses 100 100 300 300
Incl：Loss from disposal of non-current
assets
IV.Total profit(“-”for loss) -5,237,052.02 -4,181,611.60 4,291,938.66 5,343,599.37
Less：Income tax expenses 385,864.09 385,864.09 1,315,167.76 1,315,167.76
V. Net profit（“-”for net loss） -5,622,916.11 -4,567,475.69 2,976,770.90 4,028,431.61
Net profit attributable to the owners of
parent company
-5,425,126.58 -4,567,475.69 3,173,852.12 4,028,431.61
Minority shareholders’ equity -197,789.53 -197,081.22
VI. Earnings per share：
（I）Basic earnings per share -0.0142 -0.01193 0.0083 0.0105
(II)Diluted earnings per share -0.0142 -0.01193 0.0083 0.0105
Legal Representative of the Company：Shang Jianbin
Person in charge of accounting organ:Song Hongbo
Person in charge of accounting institutes: Zhou Yumao
Cash flow statement
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
January-June 2009 Unit :RMB
Report period Same period of Items the previous year
Consolidation Parent company Consolidation Parent company
I.Cash flows from operating activities
Cash received from sales of goods or
rending of services
25,222,016.21 25,222,016.21 114,868,548.51 114,868,548.51
Refunded expenses of taxation
received
Other cash receipts related to operating
activities
652,843.42 296,901.07 1,099,373.08 598,563.40
Subtotal of cash inflow 25,874,859.63 25,518,917.28 115,967,921.59 115,467,111.91
Cash paid for purchasing commodities and
accepting labor services
26,998,343.18 26,998,343.18 115,161,968.61 115,161,968.61
Cash paid to and for staff and workers 3,966,966.37 3,966,966.37 5,492,638.96 5,492,638.96
Expenses of taxation paid 5,932,886.50 5,578,867.18 2,260,021.92 1,765,140.68
Other cash payments related to
operating activities
1,677,840.65 1,645,415.65 1,894,562.43 1,801,155.03
Subtotal of cash outflow 38,576,036.70 38,189,592.38 124,809,191.92 124,220,903.28石家庄宝石电子玻璃股份有限公司2009 年半年度报告财务报告
5
Net cash flow from operating activities -12,701,177.07 -12,670,675.10 -8,841,270.33 -8,753,791.37
II. Cash flow from investing activities:
Cash received from investment
recovery
Cash received from obtaining
investment income
Net cash received from the disposal of
fixed assets, intangible assets and other
long-term assets
Net cash recived from subsidiaries and
other operational units
Other cash receipts related to investing
activities
Subtotal of cash inflow
Cash paid for constructing or
purchasing fixed assets, intangible assets
and other long-term assets
37,930.07 37,930.07 332,159.00 332,159.00
Cash paid for investment
Net cash received from subsidiaries and
other operational units
Other cash payment related to
investing activities
Subtotal of cash outflow 37,930.07 37,930.07 332,159.00 332,159.00
Net cash flow from investing activities -37,930.07 -37,930.07 -332,159.00 -332,159.00
III. Net cash flow from financing activities:
Cash received from absorption of
investment
Cash received from loans
Other cash receipts from financing
activities
Subtotal of cash inflow
Cash paid for debt repayment
Cash paid for distribution of dividends
or profits or interest reimbursement
Other cash payment related to
financing activities
Subtotal of cash outflow
Net cash flow from financing activities
IV. Influence of the change in exchange rate
on cash
V. Net increase of cash and cash equivalents -12,739,107.14 -12,708,605.17 -9,173,429.33 -9,085,950.37
Add：Balance of cash and cash
equivalents at the period -begin
17,507,703.02 17,328,431.91 14,705,272.08 14,385,269.68
VI. balance of cash and cash equivalents at
the period-end.
4,768,595.88 4,619,826.74 5,531,842.75 5,299,319.31
Legal Representative of the Company：Shang Jianbin
Person in charge of accounting organ:Song Hongbo
Person in charge of accounting institutes: Zhou Yumao石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
6
Consolidation Statement on Change in Owners’ Equity
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
June 30,2009 Unit：RMB
Amount in this year
Owners’ equity belonged to Items the parent company
Share capital Capital reserves Surplus reserves Retained Profit
Minority interest Total owners’
equity
I.Balance at the endof the last year 383,000,000.00 385,190,502.62 27,454,788.05 -546,282,295.83 15,670,047.83 265,033,042.67
Add：Changes of accounting policy
Error correction of the last period
II.Balance at the beginning of this year 383,000,000.00 385,190,502.62 27,454,788.05 -546,282,295.83 15,670,047.83 265,033,042.67
III.Increase/Decrease in this year -5,425,126.58 -197,789.53 -5,622,916.11
(1)Net profit -5,425,126.58 -197,789.53 -5,622,916.11
（2）Profit and losses calculating into owners’ equity
1.Net changing amount of fair value of financial assets
available for sale
2.Effect of changesof other owners’ equity of invested
units under equity method.
3.Effect of incometax related to owners’ equity
4.Other
Subtotal of (1)and(2) -5,425,126.58 -197,789.53 -5,622,916.11
（3）Owners’ devotion and decreased capital
1.Owners’ devotion capital
2.Amount calculatedinto owners’ equity paid in shares
3.Other
（4）Profit distribution
1.Withdrawal of surplus reserves
2.Withdreawal of general risk provisions
3.Distributionforowners
4.Other
（5）Carrying forward internal owners’ equity
1.Capital reserves conversed to capital（Share capital）
2.Surplus reservesconversed to capital（share capital）
3.Remedying loss with profit surplus
4.Other
IV.Balance at the end of this year 383,000,000.00 385,190,502.62 27,454,788.05 -551,707,422.41 15,472,258.30 259,410,126.56
Legal Representative of the Company：Shang Jianbin Person in charge of accounting organ:Song Hongbo
Person in charge of accounting institutes: Zhou Yumao石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
7
Consolidated statement on changes of owners’equity（Cont’d）
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
June 30, 2009 Unit:RMB
Amount in last year
Owners’ equity belonged to Items the parent company
Share capital Capital reserves Surplus reserves Retained Profit
Minority interest Total owners’
equity
I.Balance at the endof the last year 383,000,000.00 385,190,502.62 27,454,788.05 -550,421,660.64 14,911,554.07 260,135,184.10
Add：Changes of accounting policy
Error correction of the last period
II.Balance at the beginning of this year 383,000,000.00 385,190,502.62 27,454,788.05 -550,421,660.64 14,911,554.07 260,135,184.10
III.Increase/Decrease in this year 4,139,364.81 758,493.76 4,897,858.57
(1)Net profit 4,139,364.81 758,493.76 4,897,858.57
（2）Profit and losses calculating into owners’ equity
1.Net changing amount of fair value of financial assets
available for sale
2.Effect of changesof other owners’ equity of invested
units under equity method.
3.Effect of incometax related to owners’ equity
4.Other
Subtotal of (1)and(2) 4,139,364.81 758,493.76 4,897,858.57
（3）Owners’ devotion and decreased capital
1.Owners’ devotion capital
2.Amount calculatedinto owners’ equity paid in shares
3.Other
（4）Profit distribution
1.Withdrawal of surplus reserves
2.Withdreawal of general risk provisions
3.Distributionforowners
4.Other
（5）Carrying forward internal owners’ equity
1.Capital reserves conversed to capital（Share capital）
2.Surplus reservesconversed to capital（share capital）
3.Remedying loss with profit surplus
4.Other
IV.Balance at the end of this year 383,000,000.00 385,190,502.62 27,454,788.05 -546,282,295.83 15,670,047.83 265,033,042.67
Legal Representative of the Company：Shang Jianbin Person in charge of accounting organ:Song Hongbo
Person in charge of accounting institutes: Zhou Yumao石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
8
Parent company statement on changes of owners’equity
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
June 30, 2009 Unit:RMB
Amount in this year
Owners’ equity belonged to Items the parent company
Share capital Capital reserves Surplus reserves Retained Profit
Total owners’ equity to
parent company
I.Balance at the endof the last year 383,000,000.00 355,857,851.87 32,204,150.60 -528,477,837.38 242,584,165.09
Add：Changes of accounting policy
Error correction of the last period
II.Balance at the beginning of this year 383,000,000.00 355,857,851.87 32,204,150.60 -528,477,837.38 242,584,165.09
III.Increase/Decrease in this year -4,567,475.69 -4,567,475.69
(1)Net profit -4,567,475.69 -4,567,475.69
（2）Profit and losses calculating into owners’ equity
1.Net changing amount of fair value of financial assets
available for sale
2.Effect of changesof other owners’ equity of invested
units under equity method.
3.Effect of incometax related to owners’ equity
4.Other
Subtotal of (1)and(2) -4,567,475.69 -4,567,475.69
（3）Owners’ devotion and decreased capital
1.Owners’ devotion capital
2.Amount calculatedinto owners’ equity paid in shares
3.Other
（4）Profit distribution
1.Withdrawal of surplus reserves
2.Withdreawal of general risk provisions
3.Distributionforowners
4.Other
（5）Carrying forward internal owners’ equity
1.Capital reserves conversed to capital（Share capital）
2.Surplus reservesconversed to capital（share capital）
3.Remedying loss with profit surplus
4.Other
IV.Balance at the end of this year 383,000,000.00 355,857,851.87 32,204,150.60 -533,045,313.07 238,016,689.40
Legal Representative of the Company：Shang Jianbin Person in charge of accounting organ:Song Hongbo
Person in charge of accounting institutes: Zhou Yumao石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
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Parent company statement on changes of owners’equity（Cont’d）
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
June 30, 2009 Unit:RMB
Amount in last year
Owners’ equity belonged to Items the parent company
Share capital Capital reserves Surplus reserves Retained Profit
Total owners’ equity to
parent company
I.Balance at the endof the last year 383,000,000.00 355,857,851.87 32,204,150.60 -529,328,237.24 241,733,765.23
Add：Changes of accounting policy
Error correction of the last period
II.Balance at the beginning of this year 383,000,000.00 355,857,851.87 32,204,150.60 -529,328,237.24 241,733,765.23
III.Increase/Decrease in this year 850,399.86 850,399.86
(1)Net profit 850,399.86 850,399.86
（2）Profit and losses calculating into owners’ equity
1.Net changing amount of fair value of financial assets
available for sale
2.Effect of changesof other owners’ equity of invested
units under equity method.
3.Effect of incometax related to owners’ equity
4.Other
Subtotal of (1)and(2) 850,399.86 850,399.86
（3）Owners’ devotion and decreased capital
1.Owners’ devotion capital
2.Amount calculatedinto owners’ equity paid in shares
3.Other
（4）Profit distribution
1.Withdrawal of surplus reserves
2.Withdreawal of general risk provisions
3.Distributionforowners
4.Other
（5）Carrying forward internal owners’ equity
1.Capital reserves conversed to capital（Share capital）
2.Surplus reservesconversed to capital（share capital）
3.Remedying loss with profit surplus
4.Other
IV.Balance at the end of this year 383,000,000.00 355,857,851.87 32,204,150.60 -528,477,837.38 242,584,165.09
Legal Representative of the Company：Shang Jianbin Person in charge of accounting organ:Song Hongbo
Person in charge of accounting institutes: Zhou Yumao石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
38
Shijiazhuang Baoshi Electronic Glass Co., Ltd.
Notes to financial statements
As of June 30, 2009
(Referring to notes to consolidated financial statements unless separately stated. Currency: RMB)
I.Brief introduction of the Company：Ecectric
Shijiazhuang Baoshi Electronic Glass Co., Ltd.(Hereinafter referred to as “ The Company”)is a
company listed with Shenzhen stock Exchange which issued domestically listed ordinary shares (A
shares) and domestically listed foreign-capital shares (B shares). The approved business scope of
the Company is the manufacturing and sales of kinescope bulb and kinescope for black-and –white
TV.Due to the abrupt change of domestic TV market in 1997, the Company’s production line
producing kinescope bulb and kinescope for black –and-white TV stopped production from June
1997. The Company held provisional general meeting on March 30, 2000. The meeting passed the
resolution for selling this production line to its controlling shareholder Shijiazhuang Baoshi
Electronic Group CO., Ltd.(the Controllin Co.) to exchange it for the componentfactory of the
Controlling Co. engaged in the production of kinescope part of color TV. From then on, the main
operating activities of the Company were the production and sales of pins and anode caps used for
kinescope bulb for color TV. As adopted by annual shareholders’general meeting , the Company’s
business scope was extended to include the export of self-made products and the import of
mechanical equipment, parts and components, raw and auxiliary materials needed by the Company
in addition to the original dealing in electro-vacuum glass devices and supporting electronic
components.
The subsidiary whose shares controlled by the Company (with the Company collectively called ‘the
Group’) Shijiazhuang Baoshi Colour bulbs Co., Ltd (hereinafter referred to as ‘Color bulbs’), on
July 3, 1997, jointly invested and established Shijiazhuang Baoshi Electronic Pin Glass Co., Ltd
(hereinafter referred to as Pin Co.) with Japan Electronic Pin Company and the Japan IWAI
Corporation to set up a venture in the yield Glass Limited. Color Shell owned 49% equity of Nitrate
Co. The main business of Nitrate Co. is production and sales of the glass shell of picture tube for
color TV. On November 30 2006, Color bulbs transferred all his equity in Pin Co. to Shijiazhuang
Baoshi Electronic Group Co., Ltd. On January 1, 2007, Shijiazhuang Baoshi Electronic Pin Glass
Co., Ltd was renamed Shijiazhuang Baoshi Electronic vacuum Gass Co., Ltd.
II. Influences from the change of important accounting policies of the company: No
III. Statement on complying with enterprise accounting standards
The Company state: the financial statements prepared are in line with the requirements in enterprise
accounting standards in line with of system, and have truly and completely reflected of the financial
status, operational results, cash flow, and other relevant information.
IV.Accounting policies, accounting estimation and the method of preparing consolidatedfinancial
statements：
(1) Basis for preparing financial statements：
The accounting statement was compiled in accordance with the Corporate Accounting Standards石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
39
and its application guidelines released by the state Ministry of Finance on February 15, 2006.
(2) Accounting year: from January 1 to December 31 as one accounting year.
(3) Standard currency for bookkeeping：The Company takes RMB as the standard currency for
bookkeeping.
(4) Book keeping basis and pricing principle.
The Company tqakes the accrual system as the basis for book keeping.
Accounting factors are usually measured by historical cost, using the replacement costs, the
realizable net value, the present value, the fair value to measure, to ensure that the amount of
accounting factors can be obtained and measured.
(5)Foreign currency translation
Transactions denominated in foreign currencies are translatedf into RMB at the applicable basic
ratesof exchange quoted by the People’s Bank of China ( “PBOC”) prevailing at the dates of the
transaction. The foreign currency accounts on the balance sheet date were converted to RMB
according to the median price of the RMB exchange rate on that date announced by the People's
Bank. The exchange differences were accounted to gains or losses of the current period besides the
exchange losses or gains from special funds and interests in the period of construction of fixed
assets that were accounted to the long-term unamortized expenses.
(6)Cash and cash equivalents
The cash stated in cash flow statement refers to cash in hand and bank deposits usable for payment
at any time. Cash equivalent refers to the investments with holding period of less than three months
that are readily convertible to known amouunt of cash and subject to insignificant risk of changes in
value.
(7). Accounting method of financial instruments
(1). Classification of initial confirmation of financial assets and financial liabilities.
Financial assets can be divided into four categories at the initial recognition,:
1). The financial assets measured by fair value and their changes are included in the gains and
losses in the current period, including transactional financial assets and the financial assets
measured by fair value and their changes are included in the gains and losses in the current period;
2). The expiry investments held;
3). Loans and receivables;
4). Financial assets available for sale.
Financial liabilities can be divided into two categories at the initial recognition:
1). The financial liabilities measured by fair value and their changes are included in the gains and
losses in the current period, including transactional financial liabilities and the financial liabilities
measured by fair value and their changes are included in the gains and losses in the current period;
2) Other financial liabilities.
(2). The follow-up measurement of financial assets and financial instruments follows the relevant
provisions in Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments, and Accounting Standards for Business Enterprises No. 23.
(8) Accounts receivable and provision for bed debts
Accounts receivable include the accounts receivable and other receivable . The Group had adopted
allowance accounting method to account the possible bad debts losses. method. The account
Receivable was the net value of the actual amount minus the bad debt reserve.
(a）Accounts receivable
Accounts receivable include the accounts receivable from related parties and non-related parties.石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
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For the related accounts receivable, the receivability, the other accounts receivable and the
non-related account receivable that exists evident differences, the Group adopts the method of
individual identifying to account the special bad debt reserve.
(b)Other receivables
For the accounts of other receivable, the Group uses the method of individual identifying to account
the special bad debts reserve.
(c) Recognition standards for bad Debt losses.
For the receivables that can not be repaid with evidence are recognized as bad debts, offsetting
the bad debt reserve accounted.
(9) Inventories
Inventories including raw materials, products in production, Low-value consumable goods, goods
in stock, spare parts, are listed depending on which is lower between cost and net value realizable.
For stock releasing, accounts by month-end weighted average method. For the consuming of
Consumable Goods of Low Value, uses once conversion method to account the cost. For the
consuming of packaging materials, accounts it to the cost at one time. For the cost of finished
products and products in production including the raw materials, direct labor, all indirect production
costs under normal production capacity, and the conversion of the cost of inventory sold, accounts
by month-end weighted average method.
For inventory at period end, accounts the inventory price falling reserve according to the difference
between the cost of individual inventory project and the net value realizable. For the inventories that
have similar purposes and relate to the products in the same region, and in fact, are difficult to
distinguish the serial products from other items, collectively account the price falling reserve; For
inventories that have large quantity but low in price, account the price falling reserve according to
stock categories. For the net value realizable in accordance with the normal production process,
determine the amount by the estimated stock price minus the estimated cost, cost of sales and
related taxes.
(10) Long-term equity investment
Long-term equity investments includes the equity investment on subsidiaries, consolidated
enterprises and joint enterprises and other equity investments prepared to hold more than one year.
(1) Initial measures:
(i) For the long-term equity investments formed by the merger of enterprises, determines its initial
investment costs in accordance with the following provisions:
For the corporate merger under the same control, the merging parties paying by cash, transfer of
non-cash assets, or the means of debt bearing as the merger price. The merger should be made in
accordance with the combined book value of the owner's equity share of the equity investment as a
long-term investment in the initial cost, long-term equity investment initial investment costs the
cash payment, transfer of the non-cash assets and the assumption of debt by book value to the
difference between the adjusted capital surplus; for surplus less than the offset capital, adjusts the
retained earnings; for the merging parties with the issuance of securities as interest on the price of
the merger, the merger should be made in accordance with the merging parties the rights of owners
book value of equity shares as a long-term investment in the initial cost of the investment. In
accordance with the issued shares and total value of equity, long-term equity investments and the
cost of initial investment by issuing shares of a face value of the difference between the amount
should be adjusted capital surplus; for Less capital surplus, adjusts the retained earnings.
Long-term equity investment formed by the merger of enterprises under different control, determine石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
41
the initial cost of long-term equity investment according to the cost of enterprise merger at the date
of purchase.
(ii) Besides the long-term equity investment obtained by the other way of the merger, determine the
initial investment cost in accordance with the following provisions:
For the long-term equity investment obtained by cash, determine the initial investment cost in
accordance with the actual payment of the purchase price. Initial investment costs include the costs,
taxes and other necessary expenses directly related to the obtaining of long-term equity investment;
For the long-term equity investment obtained by the issuance of equity securities, determine the
initial investment cost in accordance with the fair value of the equity securities issued.
For the long-term equity investment invested by investors, determine the initial investment cost in
accordance with value in the investment contract or agreement, besides the contract or agreement
regulates the value can not be the fair value.
For the long-term equity investments obtained through the exchange of non-monetary assets,
determine the initial investment costs in accordance with the Enterprise Accounting Standards No.
7--non-monetary exchange of assets.
For the long-term equity investments obtained through debt restructuring, determine initial
investment costs in accordance with the Enterprise Accounting Standards No. 12--Debt
Restructuring.
(2) Follow-up measurement:
(i)For the long-term equity investments that do not have joint control or significant influence on
subsidiaries, have no market quotations, the and the fair value can not be reliably measured,
accounts by the cost method..
For the cash dividend or profit declared by the units invested, recognizes it as current
investment income. Confirmation of investment income is restricted to cumulative net profit of
sub-quotas after units invested receiving the investments. For the part that surpass the above amount,
recovers it as the initial investment cost.
(ii) For the long-term equity investments that have joint control or significant influence on the units
invested, accounts it by the method of equity.
Upon the acquiring of the long-term equity investment, based on the fair assets value
recognized by the units invested, confirm the investment losses or gains and adjust the account
value of long-term equity investment after adjusting the net losses and gains achieved by the units
invested. The owning part of the profit and cash dividends declared by the units invested,
correspondingly reduce the book value of the long-term equity investment. For the other changes in
the rights of the owners apart from the net gains and losses of the units invested, adjusts the book
value of the long-term equity investments and recognizes it as capital surplus. Adjust the book value
of long-term equity investment and include it in owner's equity.
On the date of balance sheet, accounts it according to which is lower between the book value of
long-term equity investments and the amount recoverable, if the amount recoverable is lower than
the book value, accounts the assets devaluation preparations and confirms the devaluation losses.
The Company adopts the method of accounting long-term equity investment term by term, once the
devaluation preparation is confirmed, it shall not be converted back in the accounting period in the
future.
For the long-term investments that have market price, judge and account the devaluation
preparations according to the following situations:
The market price lower than the book value in continuous two years;石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
42
The investment is suspended for one year or more;
The units invested have serious losses in that year;
The units invested have losses in continuous two years;
The units invested have rectification, liquidation and other signs of unsustainable business.
For the long-term investments without market price, judge and account the devaluation preparations
in accordance with the following signs:
The changes in political or legal environment like the issuance or rectification of tax lows and
trading lows that affect the operation of the units invested, may result in the huge losses in the units
invested.
The changes in market demands due to the goods or labor provided by the units invested are
obsolete or due to consumers’ preferences change, resulted in serious influences in the financial
situation in the units invested;
The production technologies in the industries of the units invested have significant changes, the
units invested have lost their competitive capacity, thus leading to serious financial situations, for
example: rectification, liquidation etc;
The other situations that there is evidence to show the investment will not actually bring economic
interests for the Group
Standards for fixed assets: the assets held for the purpose of goods production, labor providing,
rent or management; the service life more than one year; the tangible assets with high unit value.
(11) The fixed assets depreciation:
(1) Economic benefits related to the fixed assets may flow to the enterprise;
(2) The cost of the fixed assets can be reliably measured.
Initial measurement of fixed assets: account the value of the fixed assets in accordance with the
actual cost of construction & purchase of them.
The follow-up expenditures related to fixed assets, for the ones that meet the conditions of fixed
assets confirmation, should be included in the cost of fixed assets; For the ones that do not meet the
conditions of fixed assets recognition, should be included in the current gains and losses. For the
follow-up expenditures on fixed assets, should be included in the cost of fixed assets, and should
terminate the book value of fixed assets that was replaced.
The enterprise should account depreciation for all fixed Assets. But except the fixed assets that
had accounted adequate depreciation but continued to use and the land separately accounted.
Depreciation Method: for depreciation of fixed assets, uses the straight-line method, accounting
by the recorded value minus the estimated residual net value in the expected life period.
Determine the depreciation rate according to the categories of fixed assets, expected life span and
the expected rate of net residuals, as follows :
Estimated useful Life Estimated residual value
rate
Depreciation rate(%)
Houses & buildings 20～21 3 4.62～4.85
Mechinery and quipment 11～12 3 8.08～8.82
Means of transportation 11～12 3 8.08～8.82
Other Equipment 11～12 3 8.08～8.82
At the end of each year, the Group checks the fixed assets item by item. If recoverable amount is
below the book value because the steady fall of the market price, or technological obsolescence,石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
43
damage or long-term idleness or other factors, them make the difference between the recoverable
amount and the book value as the reserve for fixed assets devaluation, which was accounted as the
individual assets.
If the fixed assets of the company actually have had losses, then account the devaluation reserve.
When one of the following circumstances exists, completely account the reserve for fixed assets
devaluation in accordance with the full book value of fixed assets:
The fixed assets that being put aside in long term, or no longer be used in the foreseeable future,
and have no value of transfer;
Due to technological advances and other factors, the fixed assets can not be used;
Although the fixed assets can be used, but if use, large quantity of unqualified products may
produce;
The fixed assets that had been damaged, and there is no usage value or value of transfer;
Other fixed assets that cannot bring economic benefits for the Group.
Upon the recognition of the fixed assets devaluation losses, depreciation or amortization expenses
of the devalued assets should have correspondent adjustment in the future periods, so that in the
remaining service life of the assets, systematically adjust the book value of the assets (excluding the
predicted net residuals).
Upon the recognition of the fixed assets devaluation losses, in the subsequent accounting period
they shall not be converted back.
Costs of the project include the construction costs, and other direct costs, original price cost and
installation cost of the equipment, and the loan expenses from the loan for purchase of fixed assets
for the construction project.
The construction project reached the predicted purpose and was transferred to the fixed assets
state, and started to account depreciation from the second month.
The Group conducts overall inspection to the construction projects at the end of each year, if
there is evidence to show that the construction projects have already devaluated, devaluation
reserves should be accounted. If there is one or more of the following circumstances, devaluation
reserves for construction projects should be accounted:
(12) Construction-in -progress
Construction in progress represents capital asets under construction or instrallation and is stated at
actual cost. The projects that had long been stopped or the projects that will not restarted in three
years.;
The projects that was lagged behind in both performance and in technique, and that may bring
great uncertainty for the economic benefits of the Group.
Other situations that can prove that depreciation has already occurred to the construction
projects.
Once the devaluation losses of the construction projects are confirmed, they shall be converted
back in subsequent accounting period.
(13)Intangible assets
For intangible assets, including patents, generic technology, trademark, copyright, land-use right,
permit right, etc, are listed by the net value that cost minus accumulated amortization and
accumulated devaluation.
The amount of amortization of intangible assets should be systematically amortized within the
service life. Amortization method should reflect the economic profit and the expected achievement
methods related to the intangible assets. If unable to determine the expected achievement methods,石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
44
adopt the method of straight line to amortize. For the intangible assets that can not confirm the
service life, do not amortize.
For the right of land use, the actual payment of the purchase price is the actual cost, accounting the
intangible assets before the construction of the project, and using method of straight line to amortize
according to the land use period.
Use the straight-line method and amortize it in 50 year.
For the expenditures on internal research & development projects, the company pays the expenses
according to the research phase and development phase. The expenditures in the research phase are
included in current profit and loss; For the expenditures that meet the conditions in the development
phase, shall be capitalized and recognized as intangible assets.
At the end of each year, the Group checks the capability of all intangible assets that is expected to
bring economic benefits for the Group in the future. For the expected recoverable amount below its
book value, account the reserves for devaluation. For the intangible assets, account the reserves for
devaluation according to the individual item.
When there is one or more of the following cases, the book value of intangible assets shall be
completely converted to the current profit and loss:
The intangible asset that have been replaced by some other new technology, and it had no use
value and transfer value;
The intangible assets the has exceeded the legal time limit, and it can not bring economic
benefits for the Group;
Other cases that can prove the intangible asset had lost its use value and transfer value.
When there is one or more of the following circumstances, account the devaluation reserves for the
intangible assets:
The intangible assets that have been replaced by other new technologies, and that makes it
produce great adverse affect to economic interests of the Group.
The market value of certain intangible assets had a sharp decline in the current period, and will
no resume in the remaining amortization period;
The intangible assets the has exceeded the legal time limit, but they still have some value;
Other cases that can prove the intangible assets have had devaluations.
Once the devaluation losses of the intangible assets have been recognized, they can not be
converted back in the subsequent accounting period.
(14) Long-term amortization expenses.
If the long-term amortization expenses are precious metals, amortize according to the actual damage
degree of the precious metals, and listed by the net amount of actual expenditure minus the
accumulated amortization.
(15) Loan expenses.
(1) Recognition principles for the capitalization of loan expenses.
Loan expenses include the interest on borrowings, the amortization of premium or discount,
support expenses and the exchange differences from foreign currency loans etc. For the loan
expenses, if can be directly attributed to the capital, account them into the capital costs; For the
other loan expenses, account them into the losses and gains in the current period according to the
occurrence amount.
If the loan expenses meet the all following conditions in the same time, they shall be capitalized and
included into the cost of that assets : ① Assets expenditure has occurred; ② The loan costs have
occurred; ③ The necessary construction or production activities for the assets to achieve the石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
45
predicted state.
The loans include the specialized loan and the general loan.
(2) For the additional expenses from specialized loan, before the achieving of the expected use or
sale state and meet the capitalized condition, according to the occurance amount to have
capitalization, and account it into the capital cost that meet the capitalization condition; after the
achieving of the expected use or sale state and meet the capitalized conditions, according to the
occurance amount to recognize as cost, and account it into the current losses and gains.
For the additional expenses from general loans, recognize the occurance amount as the expenses,
and account it into the current losses and gains.
(2) Calculation method for loan expenses capitalization.
For the special loan for the construction and production of capitalized assets, the actual interest
expense from special loan minus the interest income from loan deposited in the bank or the amount
of investment gains from temporary investment.
For the general loan for the construction and production of capitalized assets, according to the
capital expense weighted average amount of the cumulative capital expenditure multiply the
capitalization rate of the general loan occupied, account interest amount of the general loan
capitalization. The capitalization rate is accounted according to the general loan weighted average
interest rate.
(16) Social security of staff and workers
The Group participates in social security sysem for staff and owrkers establishedbygovernmental
agencies according to relevant regulations, including endowment insurance, public accurnulation
fund for housing construction and others. Except the above –mentioned, the Company did not make
other important commitment in respect of welfare of staff and workers
The Group allocates for insurance premium and common reserve fund according to
certainproportion of total payroll under the premise of not exceeding the specified top limit and
make payment to labor and social security organ in accordance with relevant regulations.
Corresponding expenditure is included in current production costs or expenses.
(17) )Income recognition
Sales of products：
The risks and rewards on goods ownership are transferred to the buyers. The company will no
longer implement the right of management and the right of actual control. The amount of income
can be reliably accounted. The economic interest related to transactions flows into the Group and
the cost related to the sale of the goods, the realization of business income confirmed.
Provision of balor services：
The operating income from the labor services started and finished within the samefiscalyear is
recognized when the labor services are finished. The income from labor services that are started and
completed in different years is recognized with completion percentage method on the date of
balance sheet where the result of provision of labor services can be reliably estimated.
Transferring the use right of the assets:
The related economic interests are likely to flow into the enterprise, and the amount of the
revenue can be reliably measured, confirm it as income. For the income from use fee, account it
according to the charge time and method agreed in the contract or the agreement.
Other income is recognized on the following basis：
The interest income is recognized according to the time proportion of deposit periodandeffective
yield .石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
46
Operating lease income is confirmed by straight-line method within the lease term.
(18)Accounting process of income tax
The unpaid income taxes in the current and prior period shall be confirmed as liabilities. And the
over paid income tax shall be confirmed as assets. Upon the acquisition of the assets and liabilities,
tax accounting basis shall be confirmed. If there are differences between the account value of the
assets and liabilities and the tax accounting basis, the deferred income tax assets or deferred income
tax liabilities shall be confirmed according to the relevant regulations.
(19) Method of preparing consolidated financial statements
The Group compiles the consolidated accounting statements according to Finance Ministry
Accounting Enterprise Accounting Standards No. 33 – regulations for consolidating financial
statements.
The Company starts to consolidate the income , cost and profit of subsidiaries for corresponding
period from the date of obtaining the actual control of subsidiaries and stops the consolidation from
the date of losing actual control. All material balances of current accounts, transactions and
unrealized profits between the Company and the subsidiaries have been eliminated on
consolidation.
For the minority shareholders’ equity that belongs to the equity of the subsidiary but does not
belong to the Group is listed with the item of ‘minority shareholders equity’. For the minority
shareholders equity in the current net gains and losses shall be listed the in item ‘minority
shareholders equity’ under the item of net profit in the integrated profit sheet.
V. Taxation
Tax Rate. Tax Base.
VAT 17% Product sales revenue.
VAT 13% Sales revenue of energy and power
Business tax 3～5% Income from labor services and lease.
City construction tax 7% Turnover tax to be paid allowances.
Surcherge for education 4% Turnover tax to be paid allowances.
Enterprise income tax 25% Taxable income
VI. .Controlled subsidiaries and associated companies
Full name Proportion(%)
ofthe
investmen
t company
Registrat
ion
plane
Busines
s
nature
Registered
capital
（RMB’00
00）
Business
scope
Amount
of
investmen
t made by
the
company
directly
Indir
ect
Minority
interests
2009.6.30
（RMB’0000）
Whether
Or not
consolida
ted
Shijiazhua
ng
Baoshi
Color bulb
Co., Ltd.
No.9,
Huanghe
Road,
Shijiazh
uang
Manufa
cturing
Industry
54,068 Production
and sales
of glass
bulbs for
colour
kinescope
and
43,934 81.26% 1,547.23 Yes石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
47
electronic
glass
products
VII. Notes to main iterms of Consolidation financial statements(RMB：RMB)
Monetary capital
June 30, 2009 December 31, 2008
Cash 66,243.63 77,613.72
Bank deposit 2,288,477.22 16,397,990.22
Other currency capital 2,413,875.03 1,032,099.08
Total 4,768,595.88 17,507,703.02
Notes（1）The other monetary capital was the margin for the notes payable.
（2）Monetary capital at the end of period decreased by 72.76% over the beginning of period
due to decrease of operating income and collection of the Company.
Bill receivable
June 30, 2009 December 31, 2008
Trade acceptance
Bank acceptance 1,378,111.88 1,340,000.00
Total 1,378,111.88 1,340,000.00
The paid but undue bills
Issue unit/Endorsing
Units End of balance Issue date Mature date
Bank acceptance GOME 100,000.00 2009-4-20 2009-10-20
Total 100,000.00
3.Account receivable
（1）Type Analyse:
Balance in year-end Balance in year-begin
Amount Proportion(%) Bad debt reserve Amount Proportion(%) Bad debt reserve
Significant account
receivable of single
amount
110,482,751.62 80.13 8,041,810.32 104,070,137.00 76.45 8,041,810.32
The receivables that
the individual
amount is not large
but the risk is great
25,594,483.48 18.56 25,594,483.48 25,594,483.48 18.80 25,594,483.48
Other unsignificant
of account
1,800,020.71 1.31 0.00 6,467,253.77 4.75 -石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
48
receivable
Total 137,877,255.81 100.00 33,636,293.80 136,131,874.25 100.00 33,636,293.80
Note：Class standard of account recivable：
①The receivables of large amount: The receivables that rank at top five and the total amounts
account for 10% or more;
②The receivables that the individual amount is not large but the risk is great and the period more
than 3 years;
③Other receivables which are not significant: the receivables besides ①, ②.
④The other monetary fund was the margin for the notes payable.
The method for the accounting of provision for bad debts of the company is individual confirmation,
provisions for bad debts were accounted on the receivables for more than three years and other
receivables may not be recovered.
（2）The age of acounts analyzed
Balance in year-end Balance in year-begin
Amount
Proporti
on(%)
Bad debt reserve Amount
Proportio
n(%)
Bad debt reserve
Within 1 year
104,019,290.01 75.44 0.00 102,454,908.45 75.26 0.00
1-2 years
205,000.00 0.15 0.00 24,000.00 0.02 0.00
2-3 years 3,796,390.00 2.75 3,779,718.00 3,796,390.00 2.79 3,779,718.00
Over 3 years
29,856,575.80 21.65 29,856,575.80 29,856,575.80 21.93 29,856,575.80
Total 137,877,255.81 100.00 33,636,293.80 136,131,874.25 100.00 33,636,293.80
Notes： The receivable balance for semi-annual 2009 has increased RMB 1.7454 million more than
that at the end of 2008, the increase rate is 1.28%.
(3)The top five accounts receivable at period end accumulated a loan of RMB 126.1501 million in
total, the ratio representing the total value of accounts receivable at period end was 91.49%.
（4）There were no important accounts receivable from the main shareholders of the Company
holding nore than 5% (including 5%) of the total shares of the Company.
（5）The balance at the period end of the receivables of related parties is RMB 94.6853 million,
accounting for 68.67 % of the balance of accounts receivable at the period end.
(6) The top 5 in accounts receivable
Balance at the period
end. Age Proportion%
Shijiazhuang Baoshi Electronic
Vacuum Glass Co., Ltd. 94,685,331.03 Within 1 year 68.67%
Tianjing Anjing Electrionic 8,041,810.32 Over 3 years 5.83%
Baoshi TV Factory 14,009,355.59 Over 3 years 10.16%
Henan Ancai Hi-Tech Co., Ltd. 5,617,204.12 Within 1 year 4.07%
Anyang Xinyi Electronic 3,796,390.00 Over 3 years 2.75%石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
49
Total 126,150,091.06 91.49%
（7）The accounts receivable that impairment was tested separately
Balance at the
period end.
Provision for
bad debts
Ratio
account(%)
Reasong for the
accounting
Tianjing Anjing Electronic Glass Co.,
Ltd.
8,041,810.32 8,041,810.32 100.00
Stopped and had no
ability to repay
Anyang Xinyi Electrinic Glass Co.,
Ltd.
3,796,390.00 3,796,390.00 100.00
The group belonging to
is bankrupting
Shenzhen Dimotai Industry 56,244.44 56,244.44 100.00
The loan units cannot be
contacted.
Tianjing Jingjing Glass Co.,Ltd. 266,960.00 266,960.00 100.00
Account age exceeds 3
years and has no sign to
repay
Jiangshu Chemical 27,435.00 27,435.00 100.00
The loan units cannot be
contacted.
Baoshi Trade Company 269,792.40 269,792.40 100.00
Stopped and had no
ability to repay
Baoshi Process Factory 921,915.24 921,915.24 100.00
Stopped and had no
ability to repay
Anyang Radio tube Factory 68,486.00 68,486.00 100.00
The loan units cannot be
contacted.
Fuyang Baoshi 186,050.75 186,050.75 100.00
Account age exceeds 3
years and has no sign to
repay
Shijiazhuang Radio and TV
Company. Economic Department
483,604.75 483,604.75 100.00
The loan units cannot be
contacted.
Nanning Wireless No.3 Factory 1,061,353.90 1,061,353.90 100.00
The loan units cannot be
contacted.
Baoshi TV Factory 14,009,355.59 14,009,355.59 100.00 Bankrupting
Tianjing Communication Tadio
Company
570,000.00 570,000.00 100.00
The loan units cannot be
contacted.
Anyang Dali Electrinic Company 45,006.00 45,006.00 100.00
The loan units cannot be
contacted.
Shanxi Huguan Chemical station 101,200.00 101,200.00 100.00
The loan units cannot be
contacted.
Shanxi Chengzhi Chemical station 20,840.00 20,840.00 100.00
The loan units cannot be
contacted.
Shixinsheng Industry Company 27,050.00 27,050.00 100.00
The loan units cannot be
contacted.
Jingjing Sale Building 12,600.00 12,600.00 100.00
The loan units cannot be
contacted.
Zhang Jinjiang 42,500.00 42,500.00 100.00
Account age exceeds 3
years and has no sign to
repay石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
50
Shilichao Trade Company 1,001,600.00 1,001,600.00 100.00
Account age exceeds 3
years and has no sign to
repay
Xinxiang Industry and trade 36,960.00 36,960.00 100.00
The loan units cannot be
contacted.
Shunping Home Appliances 74,070.00 74,070.00 100.00
The loan units cannot be
contacted.
Wuji Home Appliances 2,500.00 2,500.00 100.00
The loan units cannot be
contacted.
Xinle People Security
Dept
33,600.00 33,600.00 100.00
The loan units cannot be
contacted.
Shi Zhenghong 10,000.00 10,000.00 100.00
Account age exceeds 3
years and has no sign to
repay
Xingji Industry product
marketing—Ji Weiying
220,000.00 220,000.00 100.00
The loan units cannot be
contacted.
Shanxi Changzhi Chemical-Wang
Miao
13,798.45 13,798.45 100.00
The loan units cannot be
contacted.
Zhang Yanqiang 14,060.00 14,060.00 100.00
Account age exceeds 3
years and has no sign to
repay
Meng Jun 161,125.00 161,125.00 100.00
Account age exceeds 3
years and has no sign to
repay
Shahe Town Enterprise Bureau
industry Sale Company
56,400.00 56,400.00 100.00
The loan units cannot be
contacted.
Fuyang Merchandise Building 2,000,000.00 2,000,000.00 100.00
Account age exceeds 3
years and has no sign to
repay
Other 3,585.96 3,585.96 100.00 End fund
Total 33,636,293.80 33,636,293.80
4．Other receivable
（1）Type analyse
Type Balance in year-end Balance in year-begin
Amount Proportion(%)
Bad debt
reserve
Amount Proportion(%)
Bad debt
reserve
Significant account receivable of
single amount
20,568,397.5559.73 533,465.38 13,494,140.04 51.13 533,465.38
The receivables that the individual
amount is not large but the risk is
great
5,651,589.95 16.41 4,776,163.654,776,163.65 18.10 4,776,163.65
Other unsignificant of account
receivable
8,214,708.92 23.86 0.00 8,122,467.54 30.78 -石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
51
Total 34,434,696.42100 5,309,629.0326,392,771.23 100.00 5,309,629.03
Note：Class standard of account recivable：
The receivables of large amount: The receivables that rank at top five and the total amounts account
for 10% or more;
②The receivables that the individual amount is not large but the risk is great and the period more
than 3 years;
③Other receivables which are not significant: the receivables besides ①,(2)
(4) Individual recognition is adopted to account provisions for bad debts in other receivables.
（2）Age analyse
Balance in year-end Balance in year-begin
Amount Proportion(%) Bad debt reserve Amount Proportion(%) Bad debt reserve
Within 1 year
12,670,698.41 36.80 - 5,777,240.74 21.89 -
1-2 years
8,693,548.77 25.25 - 4,612,762.30 17.48 -
2-3 years 2,810,959.68 8.16 533,465.38 6,714,243.32 25.44 533,465.38
Over 3 years
10,259,489.56 29.79 4,776,163.65 9,288,524.87 35.19 4,776,163.65
Total 34,434,696.42 100 5,309,629.03 26,392,771.23 100.00 5,309,629.03
（3）The top five accounts receivable at period end a loan of RMB 22.1035 million in total, the
ratio representing the total value of accounts receivable at period end was 64.19%.
(4)There was RMB 4.8138 other receivable from the main shareholders of the Company holding
nore than 5% (including 5%) of the total shares of the Company.
（5）In other receivables, the balance at the period end of the related parties is RMB 20.1105
million, accounting for658.4% of the balances of other receivables.
(6) Other receivables at the end of period increased by 38.14% over the beginning of period due to
increase of accounts receivable from the Group Company.
(7) The top 5 in other receivable
Balance at the
period end. Age Proportion%
1,332,884.02 Within 1 year 3.87
1,762,200.32 1-2 years 5.12
1,658,150.36 2-3 years 4.82
Large-diameter Co.
2,529,403.12 Over 3 years 7.35
4,813,831.89 Within 1 year 13.98
1-2 years 0.00
2-3 years 0.00
Shijiazhuang Baoshi Electrinic
Group Co., Ltd.
Over 3 years 0.00
Within 1 year 0.00
1,753,495.09 1-2 years 5.09
2,908,410.20 2-3 years 8.45
Shijiazhuang Baoshi Electrinic
vacuum Glass Co., Ltd.
Over 3 years 0.00
Baoshi Zhonghe Steel Plastic Co 742,061.38 Within 1 year 2.15石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
52
388,300.69 1-2 years 1.13
487,116.59 2-3 years 1.41
1,734,616.41 Over 3 years 5.04
143,699.41 Within 1 year 0.42
88,292.09 1-2 years 0.26
169,124.86 2-3 years 0.49
Baoshi Industry and trade
1,591,940.73 Over 3 years 4.62
Total 22,103,527.16 64.19
（8）The provision for devaluation of other receivables which undero individual devaluation test
Balance at the
period end. Age
Proporti
on%
Cause
Heat preservation Plant 38,735.55 38,735.55 100.00
Insulator 15,280.40 15,280.40 100.00
Infrastructure Dept 1,080.00 1,080.00 100.00
Saige Zhongkang 161,568.10 161,568.10 100.00
Liu Liqi 5,000.00 5,000.00 100.00
Dongan Company 12,126.27 12,126.27 100.00
Xu Xin 100,000.00 100,000.00 100.00
Zhao Junqing 60,000.00 60,000.00 100.00
Electric Cars into 43,366.86 43,366.86 100.00
Daming Gas plant 4,435.00 4,435.00 100.00
Telecom Bureau 4,400.00 4,400.00 100.00
Hebei Mobile 32,000.00 32,000.00 100.00
Capsule Plant 30,890.01 30,890.01 100.00
Yang Jizhan 787.20 787.20 100.00
Han Xuming 5,500.00 5,500.00 100.00
Province Sofware Center 61,035.00 61,035.00 100.00
Zhao Junqing 135,000.00 135,000.00 100.00
Liu Shufen 2,190.00 2,190.00 100.00
Wang Qiangfei 268.40 268.40 100.00
Cheng Ding 5,000.00 5,000.00 100.00
Industry and trade Company 47,428.09 47,428.09 100.00
Delayed wages 48.72 48.72 100.00
Marketing Dept 22,294.41 22,294.41 100.00
Discont interest 232,810.80 232,810.80 100.00
City Sida 241,350.00 241,350.00 100.00
Debts age
exceeds 3 years
and has no sign
to repay
Henan Fuyang Baoshi 1,066,930.75 533,465.38 50.00
Enterprise
business
circumstances is
not good and
currently
discussing repay石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
53
affairs
Construction archives 70,000.00 70,000.00 100.00
Anhui Antai 2,500.00 2,500.00 100.00
Province Second construction No.5. Dept. 20,000.00 20,000.00 100.00
Foreign affairs industrial Company 3,800.00 3,800.00 100.00
Huayun Winery 97.70 97.70 100.00
New Century Capsule 404,360.62 404,360.62 100.00
Mineral water plant 470,241.48 470,241.48 100.00
Baoshi Industry and trade Company 1,544,512.64 1,544,512.64 100.00
Advances transferred 147,557.46 147,557.46 100.00
Tanjing Instrumentation Electronics
Import and export Company 266,745.75 266,745.75
100.00
Guizhou Xingqian Union Antimony
Product Company 120,000.00 120,000.00
100.00
Pingshan Ore Processing Plant 35,461.95 35,461.95 100.00
Pingshan Material Plant 8,602.16 8,602.16 100.00
Lingsou Hengshan Cold
ReservoirmManagement Bureau 184.85 184.85
100.00
City Chemical Fertilzer Factory 563.80 563.80 100.00
Zhengding Xizhaotong 23,000.00 23,000.00 100.00
Zongxing Mall 10,000.00 10,000.00 100.00
Xingjiang Coluured matals Industry
Company 37,122.88 37,122.88
100.00
Chongqing Tool Factory 0.98 0.98 100.00
Xianyang Caihong Fitting factory 30,575.00 30,575.00 100.00
Jinzhou Kinescope Mould Factory 50,001.34 50,001.34 100.00
Liaoning Beili vacuum Value Factory 1,000.00 1,000.00 100.00
Wenzhou Autocortrnl Fitting factory 121.03 121.03 100.00
Beijing Heavy Fitting Motor Facoty 33.90 33.90 100.00
Beijing Forklift plant 1,500.00 1,500.00 100.00
Beijing Fan Plant 730.93 730.93 100.00
Shanghao Ocean Electrical Shop 40,426.00 40,426.00 100.00
Shanghai Hangtong Electrical Company 8,613.98 8,613.98 100.00
Shanghai Automatization instrument
No.3 factory 902.00 902.00
100.00
Shanghai Automatization instrument
factory 18,335.60 18,335.60
100.00
Tianjing lizin Management Dept 132.44 132.44 100.00
Tianjing Zhongxing Plastic Plant 1,000.00 1,000.00 100.00
Tianjing Lifting equipment plant,product
fitting service Dept 13,400.20 13,400.20
100.00
Tianjing Jingxing Matal Company 1,024.00 1,024.00 100.00
Fujing Dongya Machine Company 130.00 130.00 100.00
Debts age
exceeds 3 years
and has no sign
to repay石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
54
Wenzhou Industry Environmental
protection machinery factory 1,560.00 1,560.00
100.00
Rubber No.1 Factory 302.61 302.61 100.00
City Sprockets Factory 676.80 676.80 100.00
Shijiazhuang Graphite electrode plant,
Specialty graphite products factory 25,000.00 25,000.00
100.00
Li Zhi 2,000.00 2,000.00 100.00
City Mould Plant 1,500.00 1,500.00 100.00
Shishi Coal mine Machinery Factory
Hydreulic Factory 1,120.00 1,120.00
100.00
Guangdong Foshan Water pump Plant 143.14 143.14 100.00
Yangzhou Asia Special Pump Factory 19,880.00 19,880.00 100.00
Nanjing Trming Electrical Technical
Service Center 119.27 119.27
100.00
Anshan Thermal Meter Factory 65.00 65.00 100.00
Shenyang Zhongjie Friendship Plant 35,969.53 35,969.53 100.00
Liaoning Chaoyang Transportation
Equipment Plant 4,522.94 4,522.94
100.00
Dongbei Technology Institute , Economic
and technological Developement
Company 430.00 430.00
100.00
Shenyang Water pump Plant 172.60 172.60 100.00
Benzi Industrial Rubber fitting Factory 14,250.00 14,250.00 100.00
Shenyang Glass Equipment marketing
Company 17.26 17.26
100.00
Hefei Hydraulic Service 4,655.00 4,655.00 100.00
Guilin Filter Factory 28.24 28.24 100.00
Hangzhou Oxygen Plant 32.75 32.75 100.00
Hangyang Equipment Engineering
Company 8,573.55 8,573.55
100.00
Hangyang Economy Development
Company 145.32 145.32
100.00
Xinxiang Lifting Euqipment Factory 46,200.00 46,200.00 100.00
Weifang Diesel engine Factory 897.54 897.54 100.00
Huaneng Jinan Oigong Company 969.65 969.65 100.00
Taiyuan Gas compressor Plant 450.00 450.00 100.00
Xian Bridged aerospace Industry
Company 1,200.00 1,200.00
100.00
Hubei Paike Sealing Co., Ltd. 8.95 8.95 100.00
Nantian Union Electrical Equipment
Factory 10,000.00 10,000.00
100.00
Total 5,843,094.40 5,309,629.03
（9）Because the provision for bad debts of the company used the method of individual
confirmation, all the provisions for bad debts for other receivables were undergone impairment test.石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
55
The reason for accounting provision for bad debts was that the loan time was too long and the loan
companies could not be contacted or had no ability to repay.
Note: Information on recovering provision for bad debts in the current year described in Note VII,
12.
Note: Information on recovering provision for bad debts in the current year described in Note VII,
12.
5. .Prepayment
Age analyse
Balance at the period
end.
Proportion(%)
Balance in
year-begin
Proportion(%)
Within 1 year 367,104.90 53.09 959,874.24 99.07
1-2 years
5,710.00 0.83 410.00 0.04
2-3 years 8,462.63 1.22 8,462.63 0.87
Over 3 years
310,247.67 44.86 132.65 0.01
Total 691,525.20 100.00 968,879.52 100.00
（2）There were no important accounts receivable from the main shareholders of the Company
holding nore than 5% (including 5%) of the total shares of the Company.
（3）The top 5 in .Prepayment
Balance at the period end. Age Proportion%
OrientThermoelectricity Company 309,555.02 Within 1 year 44.76%
Beijing Beizhi Function Material Co.,
Ltd.
103,582.10 Within 1 year 14.98%
Shiguangyu Trade Company 66,469.80 Within 1 year 9.61%
Dalian Jinke Precision Alloy Co., Ltd. 66,278.00 Within 1 year 9.58%
Yeke Metal Material Co., Ltd. 36,816.00 Within 1 year 5.32%
Total 582,700.92 84.26
6. Inventory and inventory depreciation reserve
Balance in year-end Balance in year-begin
Amount
Provision for
devaluation
Balance Amount
Provision for
devaluation
Balance
Raw materials 33,416,956.09 20,142,456.40 13,274,499.69 34,231,551.69 20,142,456.40 14,089,095.29
Commodities in
stock 37,808,423.64 10,299,174.54 27,509,249.10 39,348,127.08 10,299,174.54 29,048,952.54
Commissioned
material
processing 238,248.29 121,422.43 116,825.86 838,648.29 121,422.43 717,225.86
Material in
transit 81,158.80 0.00 81,158.80 821,164.74 - 821,164.74
Product Cost 1,828,958.52 0.00 1,828,958.52 981,776.12 - 981,776.12石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
56
Total 73,373,745.34 30,563,053.37 42,810,691.97 76,221,267.92 30,563,053.37 45,658,214.55
Notes: The reference for accounting provisions for inventory devaluation is that the net value of
inventory at the period end is lower than the cost.
7.Other current assets
Balance in year-end Balance in year-begin
Replace with US dollar 58,000,000.00 58,000,000.00
Financing expenses unconfirmed 609,389.92 689,946.00
Total 58,609,389.92 58,689,946.00
Note :Details about replacing US dollar are described in Note VII -22. The unconfirmed financing
expense is the confirmed benefits for staff retirement and is accounted according to a certain rate.
8. Long-term equity investment
Balance in year-begin Increase Decrease Balance in year-end
Long-term equity
investment 200,000.00 - - 200,000.00
（1）.Long-term equity investment(Investment type)
Balance in year-end Balance in year-begin
Associated enterprises investment 200,000.00 -
Other investment - -
Total 200,000.00 -
（2）Long-term equity investment（Investment unit）
Accounting
method
Begin
investment
Add to
investment
Proportion(%) Increase/Decrease
Provision
for
devaluation
Balance in
year-end
Shijiazhuang
Baolihua
Science and
trade Co.,
Ltd.
Equity method 200,000.00 40.00% - - 200,000.00
Total 200,000.00 40.00% - -
200,000.00
（3）Joint ventures and associated enterprises Information
Register place
Nature of
business
Proportion of
voting right of the
company in the
units being
invested
Net assets at
period end
Business in
the current
period
Net profit in
the current
period
Shijiazhuang
Baolihua
Scientific Trading
Co., Ltd.
No.9, Huanghe
Road,
Shijiazhuang
Design and sale
of mechanical
parts and
non-standard
equipment
40.00% 500,000.00 - -
9. Fexed assets and accumulated depreciation石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
57
Book Balance in
year-begin
Increase in this
period
Decrease in this
period
Book Balance in
year-end
I. Cost 373,158,389.41 37,930.07 0.00 373,196,319.48
Incl：Houses and building 183,686,584.50 0.00 0.00 183,686,584.50
Machine and equipment 181,184,377.04 37,930.07 0.00 181,222,307.11
Transportation equipment 1,586,700.72 0.00 0.00 1,586,700.72
Other equipment 6,700,727.15 0.00 0.00 6,700,727.15
II.Total accumulated
depreciation 243,637,538.56 7,641,035.29 0.00 251,278,573.85
Incl：Houses and building 105,239,666.11 4,224,791.38 0.00 109,464,457.49
Machine and equipment 132,649,155.37 3,223,364.39 0.00 135,872,519.76
Transportation equipment 857,561.62 65,601.12 0.00 923,162.74
Other equipment 4,891,155.46 127,278.40 0.00 5,018,433.86
III.Total of fixed assetsdevalue
provison 3,236,295.13 0.00 0.00 3,236,295.13
Incl：Houses and building 0.00 0.00 0.00 0.00
Machine and equipment 3,236,295.13 0.00 0.00 3,236,295.13
Transportation equipment 0.00 0.00 0.00 0.00
Other equipment 0.00 0.00 0.00 0.00
IV.Total of fixed assets Book
value 126,284,555.72 0.00 0.00 118,681,450.50
Incl：Houses and building 78,446,918.39 0.00 0.00 74,222,127.01
Machine and equipment 45,298,926.54 0.00 0.00 42,113,492.22
Transportation equipment 729,139.10 0.00 0.00 663,537.98
Other equipment 1,809,571.69 0.00 0.00 1,682,293.29
Notes: Information on Mortgages of Fixed assets, see Note 10.
Information on idle fixed assets
Original book
value
Accumulated
depreciation
Provision for
devaluation
Net book value Notes
Houses and
building
Machine and
equipment 4,304,134.97 1,227,813.39 3,003,277.83 73,043.75
Transportation
equipment
Other equipment
10. Intangible assets
Book Balance in
year-begin
Increase in this
period
Decrease in this
period
Book Balance in
year-end
I. Cost Total 16,036,491.00 - - 16,036,491.00
Land use right 15,997,361.00 - 15,997,361.00石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
58
Software 39,130.00 - 39,130.00
II.Total of accumulative amortized 3,556,543.88 163606.86 - 3,720,150.74
Land use right 3,522,363.88 162781.86 3,685,145.74
Software 34,180.00 825 35,005.00
III.Total of intangible assetsdevalue
reserve
- -
Land use right - -
Software - -
IV.Total of intangible assets value 12,479,947.12 -163606.86 - 12,316,340.26
Land use right 12,474,997.12 -162781.86 - 12,312,215.26
Software 4,950.00 -825 - 4,125.00
Note: Information on Mortgages of Fixed assets, see Note 10.
11. Long-term expenses to be amortized
Original
amount
Balance in
year-begin Increase in
this year
Transfer Out in
this period
Amourtizatio
n in this
period
Accumulati
ve
amortizatio
n
Balance in
year-end
Other (Noble
Metal)
-
7,612,033.09 50,704.66 - - - 7,662,737.75
Total - 7,612,033.09 50,704.66 - - - 7,662,737.75
Note：Long-term unamortized expense is the metal stirring rods which have been put into use.
12. Deffed income tax assets
Balance in year-end Balance in year-begin
Bad debt reserve. 6,240,184.68 6,240,184.68
Inventory devaluation
provision 5,057,386.86 5,057,386.86
Impairment loss of fixed assets 354,214.15 354,214.15
Welfare for workers’
dismissing 492,166.92 492,166.92
Loss to be made up - -
Total 12,143,952.61 12,143,952.61
13. Assets devalue provision list
Balance in
year-begin
Increase in this
year
Resellers Switch back
Balance in
year-end
I.Total of Bad debts provision 38,945,922.83 - - - 38,945,922.83
Incl: Account receivable 33,636,293.80 - - - 33,636,293.80
Other receivable 5,309,629.03 - - - 5,309,629.03
II.Total stock Devalue provision 30,563,053.37 - - - 30,563,053.37
Incl：Stock Commodity 10,299,174.54 - - - 10,299,174.54石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
59
Raw Materials 20,263,878.83 - - - 20,263,878.83
III.Total of fixed assetsdevalue
provision
3,236,295.13 - - - 3,236,295.13
Incl：Houses, Building - - - - -
Machinery Equipment 3,236,295.13 - - - 3,236,295.13
14. Bill payable
Balance in year-end Balance in year-begin
Bank acceptance 2,318,326.90 1,082,099.08
Total 2,318,326.90 1,082,099.08
Note (1)Bill payable increased 114.24% for semi-annual 2009 has increased more compare with
2008 term end，was because of defer loan payment time and draw up bills.
15. Accounts payable
Balance in year-end Balance in year-begin
Accounts payable 11,957,505.66 21,823,254.90
Total 11,957,505.66 21,823,254.90
Note：（1）The borrowing amount of the shareholder units holding more than 5% at the period end .
（2）The closing balance of accounts payable contains the gas cost RMB 12,058,817.03 owed to
Shijiazhuang Xinao Gas Company.
（3）account payable For June 30, 2009 has decreased 45.21% more compare with 2008
term end，is because of the change from power business to Enterprise and due to the decreasing
dealing expenditure on power.
16. Advance accounts
Balance in year-end Balance in year-begin
Advance accounts 1,352,768.85 1,294,842.85
Total 1,352,768.85 1,294,842.85
17.Other payable
Balance in year-end Balance in year-begin
Other payable 25,890,927.80 24,213,158.91
Total 25,890,927.80 24,213,158.91
18. Payable Employee wage
Bank Balance in
year-begin
Increase in this
year
Payment amount in
this year
Bank Balance in
year-end
1. Wage, Bonus and Allowance 39,429.06 4,385,404.70 4,385,404.70 39,429.06
2.Welfarism 0 867,791.53 757,531.53 110,260.00
3. One of the five insurance 0 1,715,077.10 1,715,077.10 0.00石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
60
4.Labour union Outlay and
Education outlay
3,563,062.40 156,549.96 321,567.21 3,398,045.15
5.Refuse welfarism 2,578,056.00 393,008.64 2,185,047.36
Total 6,180,547.46 7,124,823.29 7,572,589.18 5,732,781.57
Note：The payable workers’ salary at the year end decreased RMB 0.4478 million than that at the
year beginning, the reduction rate 7.81%, Causes for the change:in the current period, paid the staff
dismission welfare accounted at period beginning.
19. Tax payable
Bank Balance in year-end
Bank Balance in
year-begin
Legal tax rate(%)
VAT -5,947,761.71 -5,002,316.36 17% or 13%
City construction tax 204,602.46 247,847.18 Turnover tax 7%
Business tax 3,751,302.17 3,795,700.92 5%
House tax 17,762.11 91,482.27 1.2%和12%
Land tax 0.01 - 9/㎡和5/㎡
Travel Tax -1,481.00 -1,481.00 Super-rate of progressive
Income tax payable 162,353.98 162,353.98 25%
Education supertax 76,745.84 98,888.57 Turnover tax 3%
Locality Education supertax 25,581.66 28,150.22 Turnover tax 1%
Stamp tax 0.01 0.01
Individual income tax 300.71 250.58 Super-rate of progressive
Total -1,710,593.76 -579,123.63
Notes: Taxes and levies payable at the end of period decreased much over the beginning of period
due to increased of actually paid value added tax caused by small amount of value added tax
retained for setoff at the beginning of this year.
20. Interest payable
Balance in year-end Balance in year-begin
Loan interest 13,832,487.11 13,491,081.29
Total 13,832,487.11 13,491,081.29
Notes：interest payable is consolidating by general office of finance of Henan and Shijiazhuang，
because other did not collect，so no pay yet.
21. Other current liabilities
Balance in year-end Balance in year-begin
USD exchange 68,346,000.00 68,346,000.00
Other
Total 68,346,000.00 68,346,000.00
Notes：In 1993,the Group signed the agreement on exchange of US dollars which agreed returning
10,000,000 US dollars to the Exchange Unit and repossess the RMB 58,000,000 exchanged in
November 1998, As of December 31,2008, the Group still consults with the Exchange Unit on the
returning of the exchange.
22. Other non-current liabilities石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
61
Balance in year-end Balance in year-begin Borrowing conditions
Hebei Finance Department
333,494.31 333,494.31
Credit loan
Shijiazhuang Fund raising office
5,000,000.00 5,000,000.00
Credit loan
Total 5,333,494.31 5,333,494.31
Credit loan
Notes：Because the creditor did not ask for the debt, the debt did not have to be repaid, and the
short-term loans were transferred to othr non-current liabilities.
23. Deferred income
Balance in year-end Balance in year-begin
Government subsidies 165,000.00 165,000.00
Notes：The ending balance was the part of environment treatment capital allocated by government
which can not be included in the loss and gain in the current period.
24. Share Capital
Balance in year-end Balance in year-begin
Shares with conditional subscription 192,698,930.00 192,698,930.00
Shares with unconditional subscription 190,301,070.00 190,301,070.00
Total 383,000,000.00 383,000,000.00
25. Capital common reserve
Balance in year-begin
Increase in
this year
Decrease in
this year
Balance in year-end
Capital stock premium 355,857,851.87 - - 355,857,851.87
Other capital reserve 29,332,650.75 - - 29,332,650.75
Total 385,190,502.62 - - 385,190,502.62
26. Surplus common reserve
Balance in year-begin
Increase in
this year
Decrease in this
year
Balance in year-end
Surplus common
reserve
27,454,788.05 - - 27,454,788.05
27. Retained profit
Retained profit at the end of last period -546,282,295.83
Add：The net profit which belongs to the owner of the parent company in
this period. -5,425,126.58
The profit for distribution
Less：The reserved fund extracted
Less：The profit handed to the parent company
The retained profit at the period end -551,707,422.41石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
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28. Business income and Business cost
Business income Business cost
Report period
Same period of the
previous year Report period
Same period of the
previous year
Glass Plain tub sales 22,153,732.72 36,896,413.63 18,041,790.96 27,185,773.44
Component sales 5,607,388.90 17,035,527.63 4,569,424.23 13,285,922.90
Subtotal of Main business
income 27,761,121.62 53,931,941.26 22,611,215.19 40,471,696.34
Gas 34,479,568.15 34,479,568.23
Electricity 25,590,349.17 25,585,208.64
Other income 6,345,155.48 11,341,623.51 6,720,849.89 8,434,096.69
Subtotal of other business
income 6,345,155.48 71,411,540.83 6,720,849.89 68,498,873.56
Total 34,106,277.10 125,343,482.09 29,332,065.08 108,970,569.90
Notes: Operating income and operating cost in current period decreased much year on year due to
no receipts and expenditures from power business in current period after the transfer of power
(natural gas, electricity, etc.) of Power Branch Factory to the Group in September 2008 and
decrease of business scale of Component Branch Factory and Glass Tube Branch Factory.
Information on the top five clients according to business income:
Total sales amount
The ratio to the total sales income of
the company(%)
Shijiazhuang Boshi Electronic Group
Co., Ltd.
23,907,508.14 70.10%
Henan Ancai Hi-Tech Co., Ltd. 3,046,837.61 8.93%
Shijiazhuang Baoshi Electronic vacuum
Glass Co., Ltd.
1,705,982.91 5.00%
Shijiazhuang Baoshi Electronic vacuum
Glass Co., Ltd.
1,733,640.00 5.08%
Caihong Group 478,632.48 1.40%
Total 30,872,601.14 90.52%
Notes：The total income of the top five clinets according to business income was RMB 30.8726
million, accounting for 90.52% of the total business income of the current year.
Information on the top five clients according to main business income:
Total sales amount
The ratio to the total sales income of the
company（％）
Shijiazhuang Boshi Electronic Group
Co., Ltd.
19,409,720.40 69.92%
Henan Ancai Hi-Tech Co., Ltd. 3,046,837.61 10.98%
Shijiazhuang Baoshi Electronic vacuum
Glass Co., Ltd.
1,705,982.91 6.15%
Shijiazhuang Baoshi Electronic vacuum 1,733,640.00 6.24%石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
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Glass Co., Ltd.
Caihong Group 478,632.48 1.72%
Total 26,374,813.40 95.01%
Notse：The total income of the top five clinets according to Main business income was RMB
26.3748 million, accounting for 95.01% of the total main business income of the current year.
29. Business tax and additional
Standard Amount in this period
Business tax 5% 15,864.84
House tax 12%和1.2% 38,075.60
City safeguard
and construction tax
7%
207,342.39
Education surtax 4% 118,481.32
Total 379,764.15
30. Sales expenses and Administrative expenses
Report period Same period of the previous year
Sales expenses 691,484.09 837,358.08
Administrative expenses 8,532,140.08 10,251,229.11
Notes: (1)Selling expenses decreased by RMB 0.1459 year on year mainly due to decrease of
selling expenses caused by decreased of sales volume of the Company.
(2)Administrative expenses decreased by RMB 1.7191 million year on year mainly due to the
Company's greater control of expenses.
31. Financial expenses
Report period Same period of the previous year
Interest expenses 435,055.97 634,612.33
Less：Income from interest 28,469.05 21,466.65
Exchange loss（Or Gains） 0.00 706.99
Commission charge 1,188.80
16,173.59
Other 0.00 -
Total 407,775.72 628,612.28
Notes：Financial expenses decreased by RMB 0.2208 million year on year mainly due to decrease
of bill discount in current period.
32. Assets Devalue losses
Report period Same period of the previous year
Bad debts losses
Decline in value of inventories
prepared -82,928.32
Fixed assets
Total 0.00 -82,928.32
33. Investment income
The joint venture company of the company Shijiazhuang Baolihua Scientific Trade Co., Ltd. had石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
64
not started to operate, and the company had no investment income in the current year.
34. Non-operating incme
Report period Same period of the previous year
Loss of fixed assets - -
Net Income of disposition fixed assets
Income of debt restructuring - -
Forfeit income - -
Government subsidy 100 300.00
Other -
Total 100.00 300.00
35. Income tax expenses
Report period Same period of the previous year
Expense of current income tax 385,864.09 1,315,167.76
Expense of deferred income tax
Total 385,864.09 1,315,167.76
36. Other cash received from business operation
Amount
Electronics to raise funds to refund
the deposit and interest
73,684.07
Sale waste 223,217.00
Current fund 355,942.35
Total 652,843.42
37. Other cash paid for business activities
Amount
Sales expense 502,443.60
Administrative expenses 977,459.42
Travel loans 197,937.63
Total 1,677,840.65
38. Supplement information (Cash Flow Statement)
Report period
Same period of the
previous year
I.Adjusting net profit to net cash flow in operating
activities :
Net profit -5,622,916.11 2,976,770.90
Add: Provision for impairment of assets
Fixed assets depreciation, depletion of oil and gas
assets, depreciation of capitalized biological assets
7,641,035.30 7,682,694.59
Amortization of intanglible assets 163,606.86 184,693.36石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
65
Amortization of long-term deferred expenses
Loss on disposal fixed assets, intangible assets and
long-term assets
Loss on scrapping of fixed assets
Loss from fair change（Less：Gains）
Financial expenses 407,775.72 628,612.28
Losses arising form investment（Less：Gains）
decrease of deferred tax assets
Increase feferred income tax assets(Less: decrease)
Decrease in investories( Less：Gain) 2,847,522.58 -6,826,102.31
Decrease in operating reveivables（Less：Gain） -9,548,064.31 -11,212,964.34
Increase in operating receivable（Less：decrease） -8,347,457.23 -1,434,578.58
Other -242,679.88 -840,396.23
Net cash flows form operating activities -12,701,177.07 -8,841,270.33
2.Investing and financing activities that do not
involving cash receipts and payment
Conversion of debt into capital
Reclassify convertible bonds to be expired within one
year as current liability
Fixed assets financed by finance leases
3.Net increase in cash and cash equivalents
Cash at the end of the period 4,768,595.88 5,531,842.75
Less：Cash at the beginning of the period 17,507,703.02 14,705,272.08
Add：Cash equivalents at the end of the period
Less：Cash equivalent at the beginning of the period
Net increase in cash and cash equivalents -12,739,107.14 -9,173,429.33
VIII.Parent company of main statement Notes(Unit：RMB)
Account receivable
（1）Type analyse
Balance in year-end Balance in year-begin
Amount
Proporti
on％
Impairment
provision
Amount
Proporti
on％
Impairment
provision
Significant account receivable
of single amount
109,782,751.62 85.88 8,041,810.32 104,070,137.00 82.08 8,041,810.32
The receivables that the
individual amount is not large
but the risk is great
16,246,827.89 12.71 16,246,827.89 16,246,827.89 12.81 16,246,827.89
Other unsignificant of account
receivable
1,800,020.71 1.41 6,467,253.77 5.10 -石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
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Total 127,829,600.22 100.00 24,288,638.21 126,784,218.66 100.00 24,288,638.21
Class standard of account recivable：
(1)The receivables of large amount: The receivables that rank at top five and the total amounts
account for 10% or more;
The receivables that the individual amount is not large but the risk is great and ② the period more
than 3 years;
③Other receivables which are not significant: the receivables besides ①,(2)
④The method for the accounting of provision for bad debts of the company is individual
confirmation, provisions for bad debts were accounted on the receivables for more than three years
and other receivables may not be recovered.
（2）Age analyse
Balance in year-end Balance in year-begin
Amount
Proportion
％
Impairment
provision
Amount
Proportion
％
Impairment
provision
Within 1 year 103,319,290.01 80.83 102,454,908.45 80.82 -
1-2 years 205,000.00 0.16 24,000.00 0.02 -
2-3 years 3,796,390.00 2.97 3,796,390.00 3,796,390.00 2.99 3,796,390.00
Over 3 years 20,508,920.21 16.04 20,492,248.21 20,508,920.21 16.18 20,492,248.21
Total 127,829,600.22 100.00 24,288,638.21 126,784,218.66 100.00 24,288,638.21
Notes：(1)The receivable balance for June 30,2009 has increased RMB 1.0454 million more than
that at the end of 2008, the Increase rate 0.82%.
（2）The top five accounts receivable at period end accumulated a loan of RMB 118.8024 million in
total, the ratio representing the total value of accounts receivable at period end was 92.94%.
（3）There were no important accounts receivable from the main shareholders of the Company
holding nore than 5% (including 5%) of the total shares of the Company.
（4）In other receivables, the balance at the period end of the related parties is RMB 94.6853
million, accounting for 74.07% of the balances of other receivables.
（6）The top 5 in accounts receivable
Balance at the period
end.
Age Proportion%
Relation
Shijiazhuang Baoshi Electrinic
vacuum Glass Co., Ltd. 94,685,331.03
Within 1
year
74.07%
The same parent
company
Tianjing Anjing Electrinic Glass Co.,
Ltd. 8,041,810.32
Over 3
year
6.29% Regular client
Baoshi TV Factory
6,661,700.00
Over 3
year
5.21% Other
Henan Ancai Hi-Tech Co., Ltd.
5,617,204.12
Within 1
year
4.39% Client
Anyang Xinyi Electrinic GlassCo.,
Ltd. 3,796,390.00
Over 3
year
2.97% Client
Total 118,802,435.47 92.94%石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
67
（7）The provision for devaluation of receivables which under of individual devaluation test
Balance at the
period end.
Provision for bad
debts
Proporti
on(%)
Cause
Tianjing Anjing Electronic Glass
Co., Ltd.
8,041,810.32 8,041,810.32 100
Stopped and had no ability to
repay
Anyang Xinyi Electrinic Glass Co.,
Ltd.
3,796,390.00 3,796,390.00 100
The group belonging to is
bankrupting
Shenzhen Dimotai Industry 56,244.44 56,244.44 100
The loan units cannot be
contacted.
Tianjing Jingjing Glass Co.,Ltd. 266,960.00 266,960.00 100
Account age exceeds 3 years
and has no sign to repay
Jiangshu Chemical 27,435.00 27,435.00 100
The loan units cannot be
contacted.
Baoshi Trade Company 269,792.40 269,792.40 100
Stopped and had no ability to
repay
Baoshi Process Factory 921,915.24 921,915.24 100
Stopped and had no ability to
repay
Baoshi Process Factory 68,486.00 68,486.00 100
The loan units cannot be
contacted.
Anyang Radio tube Factory 186,050.75 186,050.75 100
Account age exceeds 3 years
and has no sign to repay
Shijiazhuang Radio and TV
Company. Economic Department
483,604.75 483,604.75 100
The loan units cannot be
contacted.
Nanning Wireless No.3 Factory 1,061,353.90 1,061,353.90 100
The loan units cannot be
contacted.
Baoshi TV Factory 6,661,700.00 6,661,700.00 100 Bankrupting
Tianjing Communication Tadio
Company
570,000.00 570,000.00 100
The loan units cannot be
contacted.
Anyang Dali Electrinic Company 45,006.00 45,006.00 100
The loan units cannot be
contacted.
Shanxi Huguan Chemical station 101,200.00 101,200.00 100
The loan units cannot be
contacted.
Shanxi Chengzhi Chemical station 20,840.00 20,840.00 100
The loan units cannot be
contacted.
Shixinsheng Industry Company 27,050.00 27,050.00 100
The loan units cannot be
contacted.
Jingjing Sale Building 12,600.00 12,600.00 100
The loan units cannot be
contacted.
Zhang Jinjiang 42,500.00 42,500.00 100
Account age exceeds 3 years
and has no sign to repay
Shilingchao Trade Company 1,001,600.00 1,001,600.00 100
The loan units cannot be
contacted.
Xinxiang Industry and trade 36,960.00 36,960.00 100 The loan units cannot be石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
68
contacted.
Shunping Home Appliances 74,070.00 74,070.00 100
The loan units cannot be
contacted.
Wuji Home Appliances 2,500.00 2,500.00 100
The loan units cannot be
contacted.
Xinle People Security
Dept
33,600.00 33,600.00 100
The loan units cannot be
contacted.
Shi Zhenghong 10,000.00 10,000.00 100
Account age exceeds 3 years
and has no sign to repay
Xingji Industry product
marketing—Ji Weiying
220,000.00 220,000.00 100
The loan units cannot be
contacted.
Shanxi Changzhi Chemical-Wang
Miao
13,798.45 13,798.45 100
The loan units cannot be
contacted.
Zhang Yanqiang 14,060.00 14,060.00 100
Account age exceeds 3 years
and has no sign to repay
Meng Jun 161,125.00 161,125.00 100
Account age exceeds 3 years
and has no sign to repay
Shahe Town Enterprise Bureau
industry Sale Company
56,400.00 56,400.00 100
The loan units cannot be
contacted.
Other 3,585.96 3,585.96 100 End fund
Total 24,288,638.21 24,288,638.21
2.Other receivables
（1）Type analyse
Report period Same period of the previous year
Amount Proportion％
Depreciation
reserve Amount Proportion％
Depreciation
reserve
Significant account receivable
of single amount
14,288,597.22 50.88 533,465.38 13,494,140.04 64.74
533,465.38
The receivables that the
individual amount is not large
but the risk is great
5,651,589.95 20.1 4,706,163.65 4,876,774.57 23.40
4,706,163.65
Other unsignificant of account
receivable
8,144,708.92 29.00 - 2,472,887.49 11.86
-
Total 28,084,896.09 100.00 5,239,629.03 20,843,802.10 100.00 5,239,629.03
Note：Class standard of other recivable：
The receivables of large amount: The receivables that rank at top five and the total amounts account
for 10% or more;
The receivables that the individual amount is not large but the risk is great ② and the period more
than 3 years;
③Other receivables which are not significant: the receivables besides ①,(2)
(4) Individual recognition is adopted to account provisions for bad debts in other
（2）Age analyse
Balance in year-end Balance in year-begin石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
69
Amount Proportion(%)
Bad debt
reserve
Amount Proportion(%)
Bad debt
reserve
Within 1 year 12,670,698.41 45.12 0.00 4,928,474.69 23.64
-
1-2 years 2,413,748.44 8.59 0.00 2,576,917.72 12.36
-
2-3 years 2,810,959.68 10.01 533,465.38 2,974,888.72 14.27
533,465.38
Over 3 years 10,189,489.56 36.28 4,706,163.65 9,218,524.87 44.23 4,706,163.65
Individual
recognition
- -
-
- -
-
Total 28,084,896.09 100 5,239,629.03 20,843,802.10 100.00 5,239,629.03
（3）The top five accounts receivable at period end a loan of RMB 13.4941 million in total, the
ratio representing the total value of accounts receivable at period end was 64.47%.
(4)There were no important accounts receivable from the main shareholders of the Company
holding nore than 5% (including 5%) of the total shares of the Company.
（5）In other receivables, the balance at the period end of the related parties is RMB 15.4486
million, accounting for 55.01% of the balances of other receivables.
(6) The top 5 in other accounts receivable
Balance in
year-end
Age Proportion %
Bad debt reserve
Shijiazhuang Baoshi Electronic Group Co.,
Ltd.
4,813,831.89 Within 1 year 17.14
1,332,884.02 Within 1 year 4.75
1,762,200.32 1-2 years 6.27
1,658,150.36 2-3 years 5.90
Large-diameter Co.
2,529,403.12 Over 3 years 9.01
742,061.38 Within 1 year 2.64
388,300.69 1-2 years 1.38
487,116.59 2-3 years 1.73
Baoshi Zhonghe Steel Plastic Co
1,734,616.41 Over 3 years 6.18
Shijiazhuang Baoshi Industry and trade
Company
1544512.64 Over 3 years 5.50
Henan Anfei Electronic Glass Co., Ltd. 1,122,356.05 Within 1 year 4.00
Total 13,494,140.04 64.74
3.Long-term equity investment
Balance in year-begin Increase Decrease Balance in year-end
Long-term equity
investment
61,369,306.96 - - 61,369,306.96
（1）Long-term equity investment（Investment unit）石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
70
Balance in year-end Balance in year-begin
Associated enterprises investment 200,000.00 200,000.00
Other investment 61,169,306.96 61,169,306.96
Total 61,369,306.96 61,369,306.96
（2）Long-term equity investment(Investment unit)
Name
Account
method
Begin investment
Add to
investment
Proporti
on
Increase/d
ecrease
Provision
fordevaluation
Balance in
year-end
Colr bulb Co.
Cost
method
439,341,956.80 - 81.26% - 378,172,649.84 61,169,306.96
Shijiazhuang
Baolihua Scientific
Trade Co., Ltd.
Equity
method
200,000.00 - 40.00% - 200,000.00
Total 439,541,956.80
-
- 378,172,649.84 61,369,306.96
（3）Main information on joint venture and joint owned enterprises
Name of units being
invested
Registered address Business nature
The ratio of
voting right of
the company in
the units being
invested
Total
amount of
net capital
at period
end
Total
business
income in
the current
period
Net profit in
the current
period
Shijiazhuang
Baolihua Scientific
Trade Co., Ltd.
No.9, Huanghe
Road,Shijiazhuang
Machinery
parts,
non-standard
equipments,
mode design
and sale
40.00% 500,000.00 - -
4.Business income /Business cost
Business income Business cost
Amount in current
period
Amount in the same
period of last year
Amount in current
period
Amount in the same
period of last year
Glass sale 22,153,732.72 36,896,413.63 18,041,790.96 27,185,773.44
Component Sale 5,607,388.90 17,035,527.63 4,569,424.23 13,285,922.90
Total of main business
income 27,761,121.62 53,931,941.26 22,611,215.19 40,471,696.34
Natural gas 34,479,568.15 34,479,568.23
Electricity 25,590,349.17 25,585,208.64
Other income 5,542,523.48 10,538,991.51 6,579,987.97 8,293,234.77石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
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Total of other business
income
5,542,523.48
70,608,908.83
6,579,987.97
68,358,011.64
Total 33,303,645.10 124,540,850.09 29,191,203.16 108,829,707.98
（1）Information on top five clients according to main business income of the company:
Total amount of sales
income
The ratio accounting for sales income of main
business of the company (%).
Shijiazhuang Baoshi Electronic Group
Co., Ltd.
19,409,720.40 69.92%
Henan Ancai Hi-Tech Co., Ltd. 3,046,837.61 10.98%
Shijiazhuang Baoshi Electrinic vacuum
Glass Co., Ltd.
1,705,982.91 6.15%
Henan Ancai Hi-Tech Co., Ltd. 1,733,640.00 6.24%
Caihong Group 478,632.48 1.72%
Total 26,374,813.40 95.01%
Note：The total amount of top five clients according to main business income was RMB 26.3748
million, accounting for 95.01% of the the total amount of main business income in the current year.
（2）Information on top five clients according to main business income of the company:
Total amount of sales income
The ratio accounting for sales income of
main business of the company (%).
Shijiazhuang Baoshi Electronic Group
Co., Ltd.
23,907,508.14 71.79%
Henan Ancai Hi-Tech Co., Ltd. 3,046,837.61 9.15%
Shijiazhuang Baoshi Electrinic vacuum
Glass Co., Ltd.
1,705,982.91 5.12%
Henan Ancai Hi-Tech Co., Ltd. 1,733,640.00 5.21%
Caihong Group 478,632.48 1.44%
Total 30,872,601.14 92.70%
Note：The total income of the top five clinets according to business income was RMB 30.8726,
accounting for 92.7% of the total business income of the current year.
5. Supplement information (Cash Flow Statement)
Report period
Same period of the
previous year
I.Adjusting net profit to net cash flow in operating activities :
Net profit -4,567,475.69 4,028,431.61
Add: Provision for impairment of assets - -
Fixed assets depreciation, depletion of oil and gas assets,
depreciation of capitalized biological assets
6,463,746.44
6,496,653.89
Amortization of intanglible assets 163,606.86 184,693.36
Amortization of long-term deferred expenses
Loss on disposal fixed assets, intangible assets and long-term assets石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
72
Loss on scrapping of fixed assets
Loss from fair change（Less：Gains）
Financial expenses 66,111.45 270,159.56
Losses arising form investment（Less：Gains）
decrease of deferred tax assets
Increase feferred income tax assets(Less: decrease)
Decrease in investories( Less：Gain) 2,847,522.58 -6,826,102.31
Decrease in operating reveivables（Less：Gain） -8,747,233.11 -10,430,332.34
Increase in operating receivable（Less：decrease） -8,816,258.02 -1,995,351.26
Other -80,695.61 -481,943.88
Net cash flows form operating activities -12,670,675.10 -8,753,791.37
2.Investing and financing activities that do not involving cash
receipts and payment
Conversion of debt into capital
Reclassify convertible bonds to be expired within one year as
current liability
Fixed assets financed by finance leases
3.Net increase in cash and cash equivalents
Cash at the end of the period 4,619,826.74 5,299,319.31
Less：Cash at the beginning of the period 17,328,431.91 14,385,269.68
Add：Cash equivalents at the end of the period
Less：Cash equivalent at the beginning of the period
Net increase in cash and cash equivalents -12,708,605.17 -9,085,950.37
IX. Relation with related parties and related transactions(Unit：RMB)
1. Related Parties with controlling relation
(1) Related Parties with controlling relation
Registered address
Main Buiness
Organization
Code
Relationshipwi
th the
Company
Economic
nature
Shijiazhuang Baoshi
Electrinic Group Co.,
Ltd.
9 Huanghe Road,
Shijiazhuang
High-tech
Industrial
Development Area,
Shijiazhuang,
Hebei Province
Electronic glass
and other
supporting
electronic
products
10441204-2
Final
Controlling
company
Limited
liability
compay
Colr bulb Co.
9 Huanghe Road,
Shijiazhuang
High-tech
Industrial
Investmentin
companies
23604225-8
Controlled
subsidiary
Limited
liability
compay石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
73
Development Area,
Shijiazhuang,
Hebei Province
(2) The registered capital of the related parties with controlling relationship and the change thereof
Balance in year-end Balance in year-Begin
Shijiazhuang Baoshi Electrinic Group
Co., Ltd.
1,389,272,300.00 1,389,272,300.00
Colr bulb Co. 540,681,957.00 540,681,957.00
(3) The shares or equity of the company held by therelated parties with controlling relationshipand
the change thereof
Balance in year-end Balance in year-Begin
Amount
Proportion
（％）
Amount
Proportion
（％）
Shijiazhuang Baoshi Electrinic Group
Co., Ltd. 192,517,208.00 50.27 198,146,657.00 51.74
2. Nature of the non-relationship with related parties
Relationship with the Company
Shijiazhuang Baoshi Electrinic vacuum Glass Co.,
Ltd.
Controlled by the same parent company
Shijiazhuang Baoshi Large-diameter plastic tube
Co., ltd.
Controlled by the same parent company
Shijiazhuang Baoshi Zhonghe Steel Plastic Shape
Co., Ltd.
Controlled by the same parent company
Shijiazhuang Baoshi Ruiming Co., Ltd. Controlled by the same parent company
Shijiazhuang Baodong Electrinic Co.,Ltd. Controlled by the same parent company
Hannan Fuyang Baoshi Glass Co., Ltd. Controlled by the same parent company
3. The transactions with the ultimate holding company
Sales Goods, provice of raw materials ① and Work in process
Items Transactions
Unliquidated
amount Pricing policy
Sales of raw materials
and work in process
22,709,372.88 -
Make price and two
sides agreement
Assets leases
4,469,787.74 -
Make price and two
sides agreement
provide personal
services
35,000.00 -
Make price and two
sides agreement
Provide repair incom
59,600.00 -
Make price and two
sides agreement
Shijiazhuang Baoshi
Electrinic Group Co.,
Ltd.
Subtotal 27,273,760.62 -石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
74
Note: On September 26, 2008, Shijiazhuang Baoshi Electronic Group Co., Ltd. signed an agreement
with the Company to rent the assets of Power Branch of the Company and pay rental charge. The
personnel expenses of Power Branch shall be borne by Baoshi Group Co. and paid to the Company
in the form of service charge.
（2）Purchase power, Raw materials, assets leases of payable,services fee of payable
Items Transactions
Unliquidated
amount Pricing policy
Sale of raw materials 1,103,630.69
Make price and two
sides agreement
Assets leases of
payable
1,885,000.00 -
Make price and two
sides agreement
Purchase Group
Power
5,593,485.78 -
Make price and two
sides agreement
Enterprise service fee
of payable
2,344,945.05 -
Make price and two
sides agreement
Shijiazhuang Baoshi
Electrinic Group Co.,
Ltd.
Subtotal 10,927,061.52
Note 1: On September 26, 2008, Shijiazhuang Baoshi Electronic Group Co., Ltd. signed an
agreement with the Company to rent the assets of Power Branch of the Company. After the signing
of the agreement, Baoshi Group Co. is responsible for settling all power costs and the power needed
by the Company is purchased from Baoshi Group Co.
Note 2: The personnel employed by the glass tube project of the Company belong to Baoshi Group
Co. and their remuneration is paid in the form of service charge.
4.Nature of the non-relationship with related parties
Items Transactions
Unliquidated
amount
Pricing policy
Sales of raw materials
and work in process 1,996,000.00 19,277,499.34
Make price and two
sides agreement
Sales power
65,247,882.74
Make price and two
sides agreement
Provide repair income
366,520.64 9,859,652.25
Make price and two
sides agreement
Lease income
1,102,928.70 5,764,833.99
Make price and two
sides agreement
Shijiazhuang Baoshi
Electrinic vacuum
Glass Co., Ltd.
Subtotal 3,465,449.34 100,149,868.32
Sale of Materials and
hydrogen gas 41,794.50
Make price and two
sides agreement
Provide repair income
17,870.00
Make price and two
sides agreement
Other related parties
Subtotal
59,664.50
Make price and two
sides agreement 议定石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
75
5．Current account of associated enterprises
（1）Account reveivable
Balance in
year-end
Proportion(
%)
Balance in
year-begin
Proportion(
%)
Shijiazhuang Baoshi Electrinic vacuum Glass Co., Ltd.
Hannan Fuyang Baoshi Glass Co., Ltd
Total
94,685,331.03 68.67 92,092,228.93 65.27
Hannan Fuyang Baoshi Glass Co., Ltd 186,050.75 0.13 186,050.75 0.13
Total 94,871,381.78 68.8 92,278,279.68 65.4
（2）Account payable
Balance in
year-end
Proportion(
%)
Balance in
year-begin
Proportion(
%)
Shijiazhuang Baoshi Electrinic Group
Co., Ltd.
4,813,831.89 13.98 - -
Shijiazhuang Baoshi Electrinic vacuum
Glass Co., Ltd.
5,464,537.29 15.87 4,661,905.29 26.73
Shijiazhuang Baoshi Large-diameter
plastic tube Co., ltd.
7,472,521.92 21.70 7,492,521.92 26.71
Shijiazhuang Baoshi Zhonghe Steel
Plastic Shape Co., Ltd.
3,486,557.06 10.13 3,476,504.34 12.49
Shijiazhuang Baoshi Ruiming Co., Ltd. 510,960.33 1.48 511,213.05 0.51
Shijiazhuang Baodong Electrinic
Co.,Ltd.
725,705.20 2.11 699,924.70 1.79
Hannan Fuyang Baoshi Glass Co., Ltd 1,066,930.25 3.10 1,066,930.25 4.23
Total 23,541,043.94 68.36 17,908,999.55 64.22
（3）Other payable
Balance in
year-end
Proportion(%)
Balance in year-begin Proportion(%)
Shijiazhuang Baoshi Electrinic Group Co.,
Ltd.
- - 2,361,143.26 54.69
Shijiazhuang Baoshi Ruiming Co., Ltd. 410,000.00 1.58 410,000.00 1.00
Total 410,000.00 1.58 2,771,143.26 55.69
X. External security and commitment events.
In 2006, the Group signed (contract number : 072006100101) mortgage contract with the
Development Zone Branches of Shijiazhuang Commercial Bank, providing 18.8 million Yuan
mortgage security for Shijiazhuang Construction & Investment Co., Ltd, the mortgage property: the
land located at NO. 8 Electronic Plant Street, Chang’an District(land No.CA-2-8-3), and the house
located at No.8 Chang’an District(House Ownership No.1900027). This loan has been overdue,石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
76
the Shijiazhuang Commercial Bank have transferred the loan to Hebei Guoxing Assets Operation
Co., Ltd, Hebei Guoxing Assets Operation Co., Ltd has agreed the extension of the loan.
XI. Other important events
1. According to the resolutions of the 19th meeting of the fifth board of directors of the Company,
the Company and Shijiazhuang Baoshi Electronic Group Co., Ltd. (hereinafter referred to as
"Baoshi Group Co."), the controlling shareholder of the Company, decided after consultation that
Baoshi Group Co. should be responsible for the business of energy and power supply for which the
Company was originally responsible and the Company should purchase energy and power including
water, electricity and natural gas from Baoshi Group Co. Meanwhile, the energy and power assets
related to supply of water, electricity and natural gas originally operated by the Company are rent to
Baoshi Group Co. and relevant personnel are transferred as service personnel.
2. As of the end of 2008, the amount of accounts receivable from Shijiazhuang Baoshi
Electrovacuum Glass Co., Ltd. (hereinafter referred to as "Baoshi Electrovacuum") was RMB 96.75
million. This amount is the balance of arrears formed by the Company's long-term supply of power
and component sales to Baoshi Electrovacuum. The repayment schedule made by Baoshi
Electrovacuum in September 2008: Repayment of at least RMB 12 million in 2009, repayment of
RMB 10 million in 2010 and full repayment of all arrears by installments from 2011 to 2015. The
recoverability of the arrears is uncertain.
XII.Supplement Information：
1. The net asset income rate and the income of each share were accounted according to the No. 9 of
Information Disclosure Rules for Companies which are Publicly Listed - Net Asset Income Rate
and the Calculation and Disclosure of Each Share issued by China Securities Regulatory
Commission:
Return on net assets（%） Earnings per share
Profit for the report
period Fully diluted
Weighted
average
Fully diluted
Fully
diluted(EPS)
Business profit -5,236,952.02 -2.15 -2.12 -0.0137 -0.0137
Netprofit attributable to
shareholder of common share of
the company
-5,425,126.58 -2.22 -2.20 -0.0142 -0.0142
Net profit after
deductingnon-recurring gains and
losses attributable to shareholder
of commonshare of the cmpany
-5,425,051.58 -2.22 -2.20 -0.0142 -0.0142
Note：Calculation method on return on equity and earnings per share：
（1）Fully diluted return on equity
Fully diluted return on equity=P÷E
Of which:P refers to Net profit attributable to common shareholder of the Company or net profit
after deducting non-recurring gains and losses attributable to common shareholder of the Cmpany ;
E refers to net assets at the period-end attributable to common shareholders of the company.
When the Company prepared and disclosed the consolidated statement, “ Net profit attributable to
common shareholder of the Company” excluded minority interest, : net profit after deducting
non-recurring gains and losses attributable to common shareholder of the Company” would be
calculated based on consolidated net profit after deducting minority interests; deducting石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
77
non-recurring gain and loss of parent company(ther company should consider influence of income
tax) and non-recurring gain and loss of each subsidiary (the company should consider influence of
income tax) and non-recurring gain and loss of each subsidiary (the company shluld consider
influence of income tax); : net assets at the period-end attributable to common shareholders of the
company” excluded minority interests.
（2）Weighted average return on equity
Weighted average return on equity=P/（E0＋NP÷2＋Ei×Mi÷M0－Ej×Mj÷M0±Ek×Mk÷M0）
Of which：P REFERS TO Net profit attributable to common shareholder of the Company or
netprofit after deducting non-recurring gains and losses attributable to common shareholder of the
Company; NP refers to net profit attributable to common shareholders of the Company; EO refers to
net assets at the period-begin attributable to common shareholders of the company; Ei refers to net
assets increased due to issuance of new share ordebts for equity swap or attributable to common
shareholders of the Company; Ej refers to net assets decreased due to repurchased or dividends in
cash or attributable to common shareholders of the Company; Mo refers to the number of months
during the report period; Mi refers to the number of months from the next month when net assets
decreased to the end of the reort period; Ek refers to change of increase/decrease of net assets due to
other transaction events; Mk refers to the number of months from the next month when other net
assets changed the end of the report period.
（3）Earnings per share-basis
EPS=P÷S
S=S0＋S1＋Si×Mi÷M0-Sj×Mj÷M0-Sk
Of which：P refers to net profit attributable to shareholders holding ordinary shares or net
profitattributable to shareholders holding ordinary shares after deducting non-recurring gains and
lossesl S weighted average number of ordinary shares issued out; S0 refers to total number of shares
at the period-begin; S1 refers to the number of shares increased due to transferring capital reserve
into share capital or dividend distribution of shares during the report period; Si referrs to the number
of shares incueased due to issuance of new shares or debt for equity swap during the report period;
Sj refers to the number of shares decreased due to stock repurchase during the report period; Sk
refers to the number of split-share during the report period; M0 refers to the number of months
during the report period; Mi refers to the number of months from the next monthe to the end of the
report period for increase of sharesl Mj refers to the number of months from the next month to the
end of the report period for decrease of shares.
（4）Earnings per share-diluted
EPS-diluted=[P+（Potential diluted interests of ordinary shares recognized as expense－Transfer
fee）×（1-income tax rate）]/（S0＋S1＋Si×Mi÷M0-Sj×Mj÷M0-Sk+weighted average amount of
ordinary shares increased due to warrant , share options, convertible bood.
Of whichA:P refers to net profit attributable to shareholders holding ordinary shares or net profit
attributable to shareholders holding ordinary shares after deducting non-recurring gains and losses;
SO refers to total number of shares at the peiod-begin; S1 refers to the number of shares increased
due to transferring capital reserve into share capital or dividend distribution of shares during the
report period; Si refers to the number of shares increased due to issuance of new shares or debt for
equity swap during the report period; Sj refers to the number of shares decrease dut to stock
repurchase during the report period; Sk refers to the number of split-share during the report period;
M0 refers to the number of months during the report period; Mi refers to the number of months
from the next month to the end of the report period for increase of shares; Mj refers to the number石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
78
of months from the next month to the end of the report period for decrease of shares. The Company
shall consider all influence on potential diluted interests of ordinary shares when the company
calculated diluted earnings per share, till to minimum diluted EPS .
2. Items and amounts of non-operating profit or loss
Amount
（1）Gain/loss form disposal of non-current assets and Provision for impairment of assets including the
preparation of the write-off part .
-
(2)Tax refund, deduction and exemption that is examined and approved by authority exceeding or has no
official approval document.
-
(3)Governmental Subsidy accounted as current gain/loss, except for those subsidies at with amount or
quantity fixed by the national government and closely related to the Company’s business operation.
-
(4)Capital occupation fee collected from non-financial organizations and accounted as current gain/loss. -
（5）The investment cost for obtaining of subsidiaries, joint venture companies, and joint owned
companies was smaller than the income of fair value of identifiable net assets of the units being invested.
-
(6)Non-monetary asset exchange gain/loss. -
（7）Gain/loss investment of Commission -
(8)Asset impairment provisions for force major such as natural disasters -
(9) Gain/loss from debt reorganization -
(10) Enterprise reorganization expenses, such as payment to stuff placement and consolidation expenses -
(11) Gain/loss from trades obviously departed from fair value -
(12) Net gain/loss of current term from consolidation of subsidiaries under common control from
beginning of term to the consolidation date
-
(13) Gain/loss from debt forcasting without connection to the main business operation -
（14）In addition to the valid value keeping business relating to normal business of the company, the
company held the loss and gain of fair value from transactional financial assets and transactional
financial liabilities, and the investment income by disposing transactional financial assets, transactional
financial liabilities and financial assets for sale.
（15）The provision for devaluation of receivables which undero individual devaluation test transferred
back.
-
（16）Commissioned external loans by the Gain/loss
（17）The use of fair value measurement model of follow-up to the fair value of real estate investment
gains and losses arising from changes
（18）According to tax, accounting and other laws, regulations, the requirements of the current Gain/loss
for a one-time adjustment of the impact of the current Gain/loss;
（19）Entrusted with the operating of the trust to obtain fee income
（20）Net amount of non-operating income and expense except the aforesaid items 100.00
（21）Other non-recurring Gains/loss items -
Total 100.
Income tax (Non-regular lass and gain amount RMB 1,057,133.24- non-regular loss and gain of the
Subsidiary company was RMB 1,000,000.00)* 0.25
25.00
Gains and loss of minority interest(the provision for devaluation of receivables which undergo individual
impairment test transferred back * Ratio of minority equity)
-石家庄宝石电子玻璃股份有限公司2008 年半年度报告财务报告
79
Amount of influence of Net profit 75.00
XIII. Explanations for differences between domestic and overseas accounting standards
On September 12, 2007, China Securities Regulatory Commission (CSRC) promulgated a Notice
on the Issues Concerning Audit of Companies that Issue Foreign Investment Shares Listed in China,
announcing the cancellation of the “Dual Audit” requirements in the previously promulgated
information disclosure regulations that a company issuing foreign investment shares listed in China
conducts an overseas audit while it engages a certified public accountants entitled to securities
business for audit from the date of promulgation of this Notice. Our company has not prepared a
financial report under the overseas accounting standards since 2007, and the financial report
announced by the company was prepared according to the Accounting Standards for Business
Enterprises of China; therefore, there are no differences between domestic and overseas accounting
standards this year.石家庄宝石电子玻璃股份有限公司2009 年半年度财务报告
38
Summary Statement of Fund Occupation by the Controlling Shareholder and other Related Parties (January-June 2009)
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
Type of
fund
occupatio
n party
Name of
fund
occupati
on party
Relations
hip
between
fund
occupati
on party
and the
listed
company
Listed
comp
any
accou
nting
of
accou
nting
subjec
ts
Balance of
fund occupied
at beginning in
the 2009
Accumulative
amount of
funds payable
at the
Janury-June
2009
Interest
of fund
occupied
at the
January-
June 2
009 （ If
have）
Accumulative
amount of funds
repaid at the
Janury-June
2009
Balance of funds
occupied at the
end June 2008
Reas
on
for
occu
patio
n
Natur
e of
occup
ation
Difference Cause
Shijiazh
uang
Baoshi
Electrini
c Group
Co., Ltd
Controlli
ng
sharehol
der
Other
receiv
able
-2,361,143.26 42,353,228.29 35,178,253.14 4,813,831.89
Busin
ess
good
s
Busin
ess
7,174,975.1
5
Shijiazh
uang
Baoshi
Large-di
ameter
plastic
tube Co.,
ltd.
Controlli
ng
Compan
y and its
affiliated
Other
receiv
able
7,492,521.92 20,000.00 7,472,521.92
Good
s
Busin
ess
-20,000.00
Controllin
gsharehol
der, actual
controller
and its
affiliated
Shijiazh
uang
Baoshi
Controlli
ng
Compan
Other
receiv
able
3,476,504.34 10,052.72 3,486,557.06
Good
s
Busin
ess
10,052.72
sales
of
comm
o0diti
es,
energ
y,
maint
enanc
e
servic石家庄宝石电子玻璃股份有限公司2009 年半年度财务报告
39
Zhonghe
Steel
Plastic
Shape
Co., Ltd.
y and its
affiliated
Acco
unt
payab
le
- -
Busin
ess
0.00
Other
receiv
able
511,213.05 -252.72 510,960.33
Good
s
Busin
ess
-252.72
Shijiazh
uang
Baoshi
Ruiming
Co., Ltd.
Controlli
ng
Compan
y and its
affiliated
Other
receiv
able
-410,000.00 -410,000.00
Good
s
Busin
ess
0.00
Shijiazh
uang
Baodong
Electrini
c
Co.,Ltd.
Controlli
ng
Compan
y and its
affiliated
Other
receiv
able
699,924.70 49,864.50 24,084.00 725,705.20
Good
s
Busin
ess
25,780.50
Acco
unt
receiv
able
186,050.75 186,050.75
Good
s
Busin
ess
0.00
Hannan
Fuyang
Baoshi
Glass
Co., Ltd.
Controlli
ng
Compan
y and its
affiliated
Other
receiv
able
1,066,930.25 1,066,930.25
Good
s
Busin
ess
0.00
Other
receiv
able
4,661,905.29 802,632.00 5,464,537.29 Lease
Busin
ess
802,632.00
Shijiazh
uang
Baoshi
Electric
Pin
Glass
Controlli
ng
Compan
y and its
affiliated
Acco
unt
receiv
92,092,228.93 2,689,872.10 96,770.00 94,685,331.03
Good
s
Busin
ess
2,593,102.1
0
es石家庄宝石电子玻璃股份有限公司2009 年半年度财务报告
40
Co., Ltd. able
Subtotal
Total 107,416,135.97 45,905,396.89 0.00 35,319,107.14 118,002,425.72
10,586,289.
75
Subsidiar
y of listed
company
and its
affiliated
Subtotal
Related
natural
persons
and the
legal
persons
controlled
by them
Subtotal
Other
related
persons
and their
affiliated
Subtotal
Total
107,416,135.97 45,905,396.89 0.00 35,319,107.14 118,002,425.72
10,586,289.
75
