Nanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
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Nanjing Putian Telecommunications Co., Ltd.
2010 Third Quarterly Report(Full Text)
§1 Important notice
1.1 The Board of Directors, the Supervisory Committee, the directors, supervisors and senior
management of the Company hereby confirm that there are no factitious record, misleading statements
or material omissions in this report, and collectively and individually accepts full responsibility for the
truthfulness, accuracy and completeness of the whole contents.
1.2 Except the following directors, other directors all attended the board meeting at which this
quarterly report was considered in person:
Name of the director
who did not attend
the meeting in
person
Position of the director
who did not attend the
meeting in person
Reason for not attending the
meeting in person
Name of the
proxy entrusted
Zhu Hongchen Director Due to official business Zhao Xinping
1.3 The financial report of the third quarter was not audited by a public accounting firm.
1.4 Chairman of the BOD Mr. Zhao Xinping, General Manager Mr. Sun Liang, and Chief
Accountant Mr. Shi Lian hereby confirm that the financial report in this report is truthful and complete.
1.5 This report is prepared both in Chinese and in English. In case of any inconsistency between
the two versions, the Chinese version should prevail.
§2 Company Profile
2.1 Main accounting data and financial indicators( expressed in RMB Yuan)
30 Sep. 2010 31 Dec. 2009 Increase/decrease (%)
Total assets(Yuan) 1,430,054,317.36 1,466,288,245.48 -2.47%
Equity attributable to shareholders of the
listed company(Yuan) 352,178,220.82 333,659,473.27 5.55%
Share capital 215,000,000.00 215,000,000.00 0.00%
Net assets per share attributable to
shareholders of the listed company(Yuan
per share)
1.638 1.552 5.54%
Jul.-Sep. 2010
Increase/decrease
over the same
period of last
year(%)
Jan. – Sep. 2010
Increase/decrease
over the same
period of last
year(%)
Total operating income(Yuan) 502,163,557.42 30.95% 1,357,871,075.32 30.70%
Net profit attributable to shareholders of
the listed company(Yuan) 7,444,773.81 72.81% 15,702,386.18 63.45%
Net cash generated from operating
activities(Yuan) - - -232,471,091.11 -423.67%
Net cash generated from operating
activities per share (Yuan per share) - - -1.081 -424.76%
Basic earnings per share (Yuan per share) 0.035 75.00% 0.073 62.22%
Diluted earnings per share (Yuan per
share) 0.035 75.00% 0.073 62.22%
Weighted average return on net assets
(%) 2.14% 0.87% 4.60% 1.70%
Weighted average return on net assets 2.13% 0.86% 4.36% 1.49%Nanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
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after deducting non-recurrent profits or
losses (%)
Items of non-recurrent gains or losses From year-beginning to the end
of the reporting period Note
Gains/losses from disposal of non-current assets -9,287.65
Government subsidies accounted into current profit/loss, except
the continuous ration subsidies directly related to the normal
operations and stipulated by the government
32,000.00
Profit and loss of debt restructure -48,140.00
Net amount of other non-operating profit and expenses excluding
items above 1,304,849.87
Influenced amount of minority interest -219,369.20
Influenced amount of income tax -230,996.77
Total 829,056.25 -
2.2 Total number of shareholders and top ten shareholders not subject to sale prohibition at the
end of the reporting period
Total number of shareholders at the end of
the reporting period 14,556
Top ten shareholders of tradable shares
Shareholder Holding of tradable shares at
the end of the reporting period
Share type
Chan Keung 1,240,100 Domestically-listed shares in foreign currency
Hu Yunjing 1,130,000 Domestically-listed shares in foreign currency
Zhou Xianyu 1,083,273 Domestically-listed shares in foreign currency
Gu Feng 774,500 Domestically-listed shares in foreign currency
Wang Feifei 588,008 Domestically-listed shares in foreign currency
Chen Chaofan 416,979 Domestically-listed shares in foreign currency
KGI Asia Limited 380,183 Domestically-listed shares in foreign currency
Long Jianqiu 340,000 Domestically-listed shares in foreign currency
Zhao Guanghui 331,650 Domestically-listed shares in foreign currency
Chen Ren 310,000 Domestically-listed shares in foreign currency
§3 Significant events
3.1 Substantial changes in main items on the financial statements and main financial indicators,
and explanation on the reason of the changes
√applicable □inapplicable
Item 30 Sep. 2010 31 Dec. 2009 Change(Yuan) Change(%) Reason of a
substantial change
Monetary funds 187,573,968.98 482,952,642.17 -295,378,673.19 -61.16%
1) Due to growth of
sales scale,
accounts receivable
and inventory
increased, which
occupied a large
amount of cash. 2)
There was a
substantial increaseNanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
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of cash payment to
purchase products.
Accounts
receivable 573,631,117.95 379,210,613.99 194,420,503.96 51.27%
Accounts receivable
increased as sales
grew
Notes payable 531,235.60 92,746,648.00 -92,215,412.40 -99.43%
Due to maturity of
bank acceptance
bills
Advances from
customers 45,344,894.56 23,147,428.55 22,197,466.01 95.90%
Prepayment from
customers
increased in the
reporting period.
Jan.-Sep. 2010 Jan.-Sep. 2009 Change(Yuan) Change(%)
Total operating
income 1,357,871,075.32 1,038,948,935.82 318,922,139.50 30.70%
Sales grew under a
good market
condition.
Total operating
cost 1,331,047,458.88 1,019,690,996.05 311,356,462.83 30.53%
Cost and expenses
increased with
growth of sales
Net profit
attributable to the
owners of parent
company
15,702,386.18 9,606,667.81 6,095,718.37 63.45%
Main operating
business grew in
the reporting period.
Net Cash flow
from operating
activities
-232,471,091.11 -44,392,404.09 -188,078,687.02 -423.67%
A large amount of
cash was paid to
purchase raw
materials to satisfy
the need of
business
expansion.
Meanwhile due to
growth of sales
scale, accounts
receivable and
inventory increased.
Net Cash flow
from investing
activities
-23,007,179.97 -4,199,888.70 -18,807,291.27 -447.80%
The Company paid
2 million dollars to
establish Nanjing
Putian Optical
Network Co., Ltd. in
the reporting period.
3.2 Progress of significant events as well as analysis of its effect and solution plan
□applicable √inapplicable
3.2.1 Being issued a non-standard auditor’s opinion
□applicable √inapplicable
3.2.2 Fund provided by the Company to its controlling shareholder or related parties of the controlling
shareholder, and guaranty provided by the Company in violation of prescriptive procedures
□applicable √inapplicableNanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
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3.2.3 Signing and implementation of significant contracts that are related to routine operations
□applicable √inapplicable
3.2.4 Other issues
□applicable √inapplicable
3.3 Fulfillment of commitment made by the Company, shareholders or the effective controller
□applicable √inapplicable
3.4 Caution and explanation on a forecasted accumulated net loss for the period from the
year-beginning to the end of the next reporting period or a material change in net profit
compared with the same period of last year
□applicable √inapplicable
3.5 Other significant events to be necessarily stated
3.5.1 Securities investment
□applicable √ inapplicable
3.5.2 Reception of investigation, communication and interview during the reporting period
In the reporting period, the Company did not receive investigation, communication and interview.
3.6 Derivative investment
□applicable √inapplicable
3.6.1 Holding of derivative investment products at the end of the reporting period
□applicable √inapplicable
§4 AppendixNanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
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4.1 Balance Sheet
Company name: Nanjing Putian Telecommunications Co., Ltd. 30 September 2010 Unit: CNY
Item CoAnt sthoelid eantedd o f the cPuarrreenntt pCeormiodpa ny ACt tohnes boelidgaintendin g of thPea cruernrte Cnto pmepraiondy
Current asset:
Monetary funds 187,573,968.98 131,558,767.28 482,952,642.17 408,484,047.10
Settlement provision
Capital lent
Tradable financial assets
Notes receivable 8,214,378.42 600,000.00 2,689,865.50
Accounts receivable 573,631,117.95 427,720,754.16 379,210,613.99 276,228,451.65
Advances to suplliers 44,597,614.80 38,596,155.12 35,576,591.92 30,583,115.40
Insurance receivable
Reinsurance receivable
Contract reserve of reinsurance
receivable
Interest receivable
Dividends receivable
Other receivables 27,724,885.05 32,339,428.03 24,727,816.32 37,147,639.59
Purchase restituted finance asset
Inventories 259,903,818.97 117,552,700.77 225,755,590.34 82,089,247.71
Non-current asset due in year
Other current assets
Total current asset 1,101,645,784.17 748,367,805.36 1,150,913,120.24 834,532,501.45
Non-current assets
Granted loans and advances
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 239,568,839.47 347,656,599.47 222,268,596.35 330,356,356.35
Investment property 5,072,219.85 5,227,043.79
Fixed assets 75,298,511.79 35,546,800.75 73,613,884.02 37,553,139.77
Construction in progress 38,550.00 5,100,000.00
Construction materials
Fixed assets held for disposal
Productive biological assets
Petrol asstest
Intangible assets 8,430,412.08 2,598,701.54 9,165,601.08 2,813,434.53
Development costs
Goodwill
Long-term prepayment
Differed income tax asset
Other non-current assets
Total non-current assets 328,408,533.19 385,802,101.76 315,375,125.24 370,722,930.65
Total assets 1,430,054,317.36 1,134,169,907.12 1,466,288,245.48 1,205,255,432.10
Legal representative：Zhao Xinping Financial controller: Sun Liang Accountant officer: Shi LianNanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
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4.1 Balance Sheet(continued)
Company name: Nanjing Putian Telecommunications Co., Ltd. 30 September 2010 Unit: CNY
At the end of the current period At the beginning of the current period
Item Consolidated Parent Company Consolidated Parent Company
Current liabilities
Short-term loans 467,000,000.00 320,000,000.00 489,000,000.00 286,000,000.00
Loan from Central Bank
Deposit received and hold for others
Capital borrowed
Tradable financial liabilities
Notes payable 531,235.60 100,531,235.60 92,746,648.00 260,746,648.00
Accounts payable 471,269,896.37 225,672,288.16 409,451,172.51 131,712,965.81
Advances from customers 45,344,894.56 24,984,089.15 23,147,428.55 5,647,562.09
Selling financial asset of repurchase
Commission charge and commission
payable
Accrued payroll 13,820,594.79 4,048,627.38 14,229,929.03 4,388,612.57
Tax payable -10,241,045.57 3,670,964.94 -2,393,571.28 4,856,932.31
Interest payable
Dividends payable 1,075,818.31
Other payables 32,843,090.73 140,863,610.44 50,912,843.86 200,972,821.32
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liability due in year
Other current liabilities
Total current liabilities 1,021,644,484.79 819,770,815.67 1,077,094,450.67 894,325,542.10
Non-current liabilities
Long-term borrowings
Bonds payable
Long-term payables 80,118.00 80,118.00 80,118.00 80,118.00
Special payables
Estimated liabilities
Differed income tax liabilities
Other non-recurrent liabilities
Total non-current liabilities 80,118.00 80,118.00 80,118.00 80,118.00
Total liabilities 1,021,724,602.79 819,850,933.67 1,077,174,568.67 894,405,660.10
Owners’ equity (or shareholders’ equity)
Paid-in capital (or share capital) 215,000,000.00 215,000,000.00 215,000,000.00 215,000,000.00
Capital reserves 185,374,533.85 172,417,299.81 182,566,377.24 172,417,299.81
Less: Treasury stock
Reasonable reserve
Surplus reserve 589,559.77 589,559.76 589,559.77 589,559.76
Provision of general risk
Undistributed profit -43,756,782.59 -73,687,886.12 -59,459,168.77 -77,157,087.57
Balance difference of foreign currency
translation -5,029,090.21 -5,037,294.97
Total equity attributable to owners of the
parent company 352,178,220.82 314,318,973.45 333,659,473.27 310,849,772.00
Minor interests 56,151,493.75 55,454,203.54
Total owners’ equity 408,329,714.57 314,318,973.45 389,113,676.81 310,849,772.00
Total of liabilities and owners’ equity 1,430,054,317.36 1,134,169,907.12 1,466,288,245.48 1,205,255,432.10
Legal representative：Zhao Xinping Financial controller: Sun Liang Accountant officer: Shi LianNanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
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4.2 Income statement for the reporting period
Company name: Nanjing Putian Telecommunications Co., Ltd. July to September 2010 Unit: CNY
Current Period Same Period of Last Year
Item
Consolidated Parent Company Consolidated Parent Company
I. Total operating income 502,163,557.42 348,077,319.49 383,480,597.78 259,731,298.41
Incl. operating income 502,163,557.42 348,077,319.49 383,480,597.78 259,731,298.41
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 489,328,340.67 348,970,849.17 374,201,294.52 263,896,912.58
Incl. operating cost 433,215,940.27 317,972,260.92 319,657,403.27 230,226,077.96
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract
reserve
Bonus expense of guarantee slip
Reinsurance expenses
Operating tax and extras 1,386,408.25 166,330.47 1,366,097.30 202,382.94
Sales expense 25,916,089.18 14,606,609.69 26,423,147.07 15,373,027.20
Administration expense 23,796,800.40 11,806,706.88 22,388,007.59 14,043,883.62
Financial expenses 5,013,102.57 4,418,941.21 4,369,411.65 4,051,540.86
Losses of devaluation of asset -2,772.36 0.00
Plus: Gains from change of fair value (“-“ for loss)
Investment income (“-“ for loss) 994,969.73 3,469,615.44 946,762.22 2,876,369.31
Incl. Investment income on affiliated
Company and joint ventureand joint venture 994,969.73 994,969.73 946,810.22 946,810.22
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 13,830,186.48 2,576,085.76 10,226,065.48 -1,289,244.86
Plus: Non-operating income 335,196.71 565,389.46 127,582.28
Less: Non-operating expenses 72,000.70 339.76 296,148.06 15,475.75
Incl. Loss from disposal of non-current
assets 243,432.53 4,316.46
IV. Total profit (“-“ for loss) 14,093,382.49 2,575,746.00 10,495,306.88 -1,177,138.33
Less: Income tax 1,921,752.02 1,568,890.62 0.00
V. Net profit (“-“ for net loss) 12,171,630.47 2,575,746.00 8,926,416.26 -1,177,138.33
Net profit attributable to the owners of parent
company 7,444,773.81 2,575,746.00 4,307,968.60 -1,177,138.33
Minority shareholders’ gains and losses 4,726,856.66 4,618,447.66
VI. Earnings per share:
(I) Basic earnings per share 0.035 0.012 0.020 -0.005
(II) Diluted earnings per share 0.035 0.012 0.020 -0.005
VII. Other comprehensive income 206,142.42
VIII. Total comprehensive income 12,377,772.89 2,575,746.00 8,926,416.26 -1,177,138.33
Total comprehensive income attributable to
owners of parent company 7,650,916.23 2,575,746.00 4,307,968.60 -1,177,138.33
Total comprehensive income attributable to
minority shareholders 4,726,856.66 4,618,447.66
Legal representative：Zhao Xinping Financial controller: Sun Liang Accountant officer: Shi LianNanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
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4.3 Income Statement from year-beginning to the end of the reporting period
Company name: Nanjing Putian Telecommunications Co., Ltd. January to September 2010 Unit: CNY
Current Period Same Period of Last Year
Item
Consolidated Parent Company Consolidated Parent Company
I. Total operating income 1,357,871,075.32 910,252,896.83 1,038,948,935.82 735,922,230.48
Incl. operating income 1,357,871,075.32 910,252,896.83 1,038,948,935.82 735,922,230.48
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 1,331,047,458.88 918,719,408.02 1,019,690,996.05 748,465,881.43
Incl. operating cost 1,168,871,842.25 826,301,585.99 877,125,662.89 660,058,154.43
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract
reserve
Bonus expense of guarantee slip
Reinsurance expenses
Operating tax and extras 3,523,507.59 8,204.17 3,033,554.27 527,862.54
Sales expense 77,434,278.35 47,902,074.86 64,371,229.59 38,278,175.45
Administration expense 68,434,331.58 33,092,255.06 59,265,949.65 35,108,889.44
Financial expenses 12,594,499.11 11,226,287.94 14,392,545.53 12,987,973.09
Losses of devaluation of asset 189,000.00 189,000.00 1,502,054.12 1,504,826.48
Plus: Gains from change of fair value (“-“ for loss)
Investment income (“-“ for loss) 3,994,016.52 11,045,362.23 6,056,202.16 12,929,809.25
Incl. Investment income on affiliated
Company and joint ventureand joint venture 3,755,843.12 3,755,843.12 3,603,186.16 3,603,186.16
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 30,817,632.96 2,578,851.04 25,314,141.93 386,158.30
Plus: Non-operating income 1,593,783.74 1,056,423.07 903,986.46 324,062.44
Less: Non-operating expenses 314,361.72 166,072.66 598,331.38 73,374.41
Incl. Loss from disposal of non-current
assets 6,665.20 243,432.53 19,768.21
IV. Total profit (“-“ for loss) 32,097,054.98 3,469,201.45 25,619,797.01 636,846.33
Less: Income tax 5,091,148.85 4,471,467.02
V. Net profit (“-“ for net loss) 27,005,906.13 3,469,201.45 21,148,329.99 636,846.33
Net profit attributable to the owners of parent
company 15,702,386.18 3,469,201.45 9,606,667.81 636,846.33
Minority shareholders’ gains and losses 11,303,519.95 11,541,662.18
VI. Earnings per share:
(I) Basic earnings per share 0.073 0.016 0.045 0.003
(II) Diluted earnings per share 0.073 0.016 0.045 0.003
VII. Other comprehensive income 8,204.76
VIII. Total comprehensive income 27,014,110.89 3,469,201.45 21,148,329.99 636,846.33
Total comprehensive income attributable to
owners of parent company 15,710,590.94 3,469,201.45 9,606,667.81 636,846.33
Total comprehensive income attributable to
minority shareholders 11,303,519.95 11,541,662.18
Legal representative：Zhao Xinping Financial controller: Sun Liang Accountant officer: Shi LianNanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
9
4.4 Cash Flow Statement from year-beginning to the end of the reporting period
Company name: Nanjing Putian Telecommunications Co., Ltd. January to September 2010 Unit: CNY
Current P Item Consolidated ePraioredn t Company ConsSoalimdaet ePde riod ofP Laarestn Yt eCaorm pany
I. Net cash flow from operating activities
Cash received from sales of products and providing of services 1,381,472,664.12 899,165,637.90 1,070,521,742.47 692,820,962.41
Net increase of customer deposit and inter-bank deposit
Net increase of loans from central bank
Net increase of inter-bank loans from other financial institutions
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Refunds of taxes 463,590.07 366,813.34
Other cash received from operating activities 17,999,074.08 31,373,666.16 8,759,116.03 61,660,590.86
Sub-total of cash inflow from operating activities 1,399,935,328.27 930,539,304.06 1,079,647,671.84 754,481,553.27
Cash paid for goods and services 1,402,982,007.31 1,004,555,995.54 939,459,860.26 645,651,480.80
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to and on behalf of employees 82,763,817.61 44,038,769.20 75,004,454.78 44,135,307.27
Payments of all types of taxes 53,566,119.68 14,490,324.03 43,826,192.81 19,473,031.55
Other cash payments relating to operating activities 93,094,474.78 79,409,447.45 65,749,568.08 98,651,774.42
Sub-total of cash outflow from operating activities 1,632,406,419.38 1,142,494,536.22 1,124,040,075.93 807,911,594.04
Net Cash flow from operating activities -232,471,091.11 -211,955,232.16 -44,392,404.09 -53,430,040.77
II. Cash flow from investing activities
Cash received from recovering investment 1,500,000.00
Cash received from investment income 238,173.40 238,173.40 268,000.00 250,000.00
Net cash retrieved from disposal of fixed assets, intangible
assets, and other long-term assets 17,398.31 91,460.78 66,000.00
Net cash received from disposal of subsidiaries or other
operational units
Other cash received concerning investing activities
Sub-total of cash inflow from investing activities 255,571.71 238,173.40 1,859,460.78 316,000.00
Cash paid for purchasing fixed, intangible and other long-term
assets 9,718,351.68 6,961,320.00 6,059,349.48 2,194,361.00
Cash paid for investment 13,544,400.00 13,544,400.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other operational units
Cash paid for other investing activities
Sub-total of cash outflow from investing activities 23,262,751.68 20,505,720.00 6,059,349.48 2,194,361.00
Net cash flow from investing activities -23,007,179.97 -20,267,546.60 -4,199,888.70 -1,878,361.00
III. Cash flow from financing activities
Cash received from absorbing investment
Incl. Cash received from absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 454,000,000.00 414,000,000.00 444,000,000.00 414,000,000.00
Cash received from bond placing
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 454,000,000.00 414,000,000.00 444,000,000.00 414,000,000.00
Cash paid for settling debts 452,000,000.00 424,000,000.00 445,000,000.00 410,000,000.00
Cash paid for dividend and profit distributing or interest paying 21,900,402.11 14,702,501.06 20,609,045.20 16,704,735.27
Incl. Dividend and profit of minority shareholder paid by
subsidiaries 6,867,378.16 3,410,426.42
Cash paid for other financing activities
Subtotal of cash outflow due to financing activities 473,900,402.11 438,702,501.06 465,609,045.20 426,704,735.27
Net cash flow from financing activities -19,900,402.11 -24,702,501.06 -21,609,045.20 -12,704,735.27
IV. Influence of exchange rate alternation on cash and cash
equivalents
V. Net increase of cash and cash equivalents -275,378,673.19 -256,925,279.82 -70,201,337.99 -68,013,137.04
Plus: Balance of cash and cash equivalents at the beginning of
term 422,853,002.17 348,384,407.10 320,147,650.59 259,364,708.17
VI. Balance of cash and cash equivalents at the end of term 147,474,328.98 91,459,127.28 249,946,312.60 191,351,571.13
Legal representative：Zhao Xinping Financial controller: Sun Liang Accountant officer: Shi LianNanjing Putian Telecommunications Co., Ltd. 2010 Third Quarterly Report (Full Text)
10
4.5 Auditor’s report
Auditor’s opinion： Not audited.
Board of Directors
Nanjing Putian Telecommunications Co., Ltd.
23 October 2010
