Nanjing Putian Telecommunications Co., Ltd.
Semi-Annal Report 2012
August 2012
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Nanjing Putian Telecommunications Co., Ltd.
SEMI-ANNUAL REPORT 2012
I Important Notice
The Board of Directors and its directors, Supervisory Committee and its supervisors, senior
executives of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the Company)
hereby confirm that there are no false recordation, misleading statements or material omissions
carried in this report, and shall take all responsibilities, individually and/or jointly, for the reality,
accuracy and completeness of the whole contents.
Except for the follow directors, others are present the meeting of the Board for deliberating the
semi-annual report of the Company
Name of director not Title of director not
Reasons for absent Trustee
attended in person attended in person
Sun Liang Chairman of the BOD Due to official business Huang Haodong
Li Ying Director Due to official business Han Shu
Ding Haiyan Independent Director Due to official business Zheng Aimei
Financial report of this semi-annual repot has not been audited by CPA.
Mr. Sun Liang, Chairman of the Company, General Manager Ms. Wang Hong and Chief Accountant
Mr. Shi Lian hereby confirm the truthfulness and completeness of the Financial Report in the
Semi-annual Report 2012.
II. Company Profile
(I) Company information
Code for A-share Code for B-share 200468
Short form for A-share Short form for B-share NJ TEL B
Listing stock exchange Shenzhen Stock Exchange
Legal Chinese name of
南京普天通信股份有限公司
the Company
Abbr. of legal Chinese
name of the Company
Legal English name of the
Nanjing Putian Telecommunications Co., Ltd.
Company
Abbr. of legal English
name of the Company
Legal Representative Sun Liang
No. 58 Qinhuai Road, Jiangning Economics and Technology Development Zone,
Registered Add.
Nanjing, Jiangsu Province
Post Code of registered
211100
add.
Office Add. No. 1 Putian Road, Qinhuai District Nanjing
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Post Code of office add. 210012
Internet website www.postel.com.cn
E-mail securities@postel.com.cn
(II) Contact person and ways
Secretary of the Board Rep. of security affairs
Name Zhang Shenwei Xiao Hong
No. 1 Putian Road, Qinhuai District No. 1 Putian Road, Qinhuai District
Contact adds.
Nanjing Jiangsu Province Nanjing Jiangsu Province
Tel. 86-25-58962289 86-25-58962072
Fax. 86-25-52409954 86-25-52409954
E-mail zsw@postel.com.cn xiaohong@postel.com.cn
(III) Information disclosure and place for preparation
Newspapers Designated for
Securities Times and Hong Kong Comercial Daily
indormation disclosure
Website desinated by CSRC for
www.cninfo.com.cn
publishing semi-annual report
place for preparation of semi-annual
Security department of the Company
report
III. Major accounting data and business abstract
(I) Major accounting data and financial indexes
Whether retroactive adjusted on previous financial report or not
□Yes √ No □non-application
Major accounting data
Increase/decrease in
Reporting period Same period of last
Major accounting data this report period
(Jan. to June) year
year-on-year (%)
Total business revenue(RMB) 1,349,963,182.82 1,167,066,717.47 15.67%
Business profit(RMB) 13,543,231.97 16,232,593.95 -16.57%
Total profit(RMB) 14,366,427.62 17,513,563.03 -17.97%
Net profit attributable to shareholders of the
6,038,203.37 7,654,146.53 -21.11%
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting 5,763,929.27 7,017,683.63 -17.87%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-28,209,564.55 -123,457,082.73 77.15%
activities(RMB)
Increase/decrease in
this period-end over
End of this period End of last period
that of last period-end
(%)
Total assets(RMB) 2,271,900,285.79 2,050,755,987.18 10.78%
Owners’ equity attributable to shareholders
378,218,363.67 372,273,328.48 1.6%
of the listed company(RMB)
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Share capital(Share) 215,000,000.00 215,000,000.00 0%
Major financial indexes
Increase/decrease in
Reporting period Same period of last
Major financial indexes this report period
(Jan. to June) year
year-on-year (%)
Basic earnings per share (RMB/Share) 0.028 0.036 -22.22%
Diluted earnings per share (RMB/Share) 0.028 0.036 -22.22%
Basic EPS after deducting non-recurring
0.027 0.033 -18.18%
gains/losses (RMB/Share)
Fully diluted ROE (%) 1.6% 2.08% -0.48%
Weighted average ROE (%) 1.61% 2.1% -0.49%
Fully diluted ROE after deducting
1.52% 1.9% -0.38%
non-recurring gains/losses (%)
Weighted average ROE after deducting
1.54% 1.93% -0.39%
non-recurring gains/losses (%)
Net cash flow per share arising from
-0.131 -0.574 77.18%
operating activities (RMB/Share)
Increase/decrease in
this period-end over
End of this period End of last period
same period of last
period-end (%)
Net assets per share attributable to
shareholder of listed company (RMB/ 1.759 1.732 1.56%
Share)
Asset-liability ratio (%) 79.5% 77.62% 1.88%
Explanation on previous major accounting data and financial indexes at period-end (filling the adjustment
explanation if retroactive adjusted)
(II) Difference of accounting data under CAS and IAS
1. Difference of net profit and net assets disclosed in financial report based on IAS and CAS
□ Applicable √ Non-applicable
2. Difference of net profit and net assets disclosed in financial report based on foreign
accounting standards and CAS
□ Applicable √ Non-applicable
3. Detail items for major differences
Explanation on IAS
Items with major
Amount involved (RMB) Reasons for differences and(or) foreign accounting
differences
standards involved
Non-application
4. Explanation on accounting data difference under the foreign/domestic accounting standards
Non-applicable
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(III) Item and amount with non-recurring gains/losses deducted
√Applicable □Non-applicable
Items Amount (RMB) Note
Gains and losses from disposal of non-current
275,457.62
assets
Tax refund or exemption out of authorization, with
absence of official approval document or
accidentally
Governmental subsidy calculated into current gains
and losses(while closely related with the normal
business of the Company, excluding the 779,939.18
fixed-amount or fixed-proportion governmental
subsidy according to the unified national standard)
Fund occupation expenses received from
non-financial enterprises that reckon into current
gains/losses
Income occurred when investment cost paid by
enterprise for obtaining subsidiaries, associates and
joint ventures are lower than its share in fair
value of net realizable assets of invested units
Gains and losses from exchange of non-monetary
assets
Gains and losses from entrusted investment or
management assets
Various asset impairment reserve provided for force
majeure, such as natural disaster
Gains/losses from debt reorganization 1,030.00
Reorganization expenses, such as expenditure for
allocation of employees and integration fee
Gains and losses from excess of transaction which
are conducted on a non-fair-valued basis over its
fair value
Current net gains and losses of subsidiaries
occurred from combination under the same control
commencing from period-begin to combination
date
Gains and losses from contingent events which has
no relation with normal business of the Company
Gains and losses from change of fair values of
held-for-transaction financial assets and financial
liabilities except for the effective hedge business
related to normal business of the Company, and
investment income from disposal of transactional
financial assets and liabilities and financial assets
available for sale
Reversal of impairment reserve for account
receivable with separate impairment testing
gains/ losses from external entrustment loans
Gains and losses arising from change of fair value
4
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
of investment properties whose follow-up
measurement are at fair value
Affect upon current gains/losses arising from the
one-off adjustment in subject to requirement of
laws and rules in relation to taxation and
accounting
Income from entrusted custody operation
Other non-operating income and expenditure
-272,281.40
except the abovementioned
Other item that satisfied the definition of
non-recurring gains and losses
Influenced amount of minority shareholders’ equity 339,754.48
Impact on income tax 170,116.82
Total 274,274.10 --
Explanation on “Other item that satisfied the definition of non-recurring gains and losses” and defined
non-recurring gains and losses as recurring gain/loss according to natures and characteristic of self-operation
status
Amount involved
Item Note
(RMB)
N/A
IV. Changes in Share Capital and Particular about Shareholders
(I) Changes in share capital
1. Statement of changes in shares
□Applicable √Non-applicable
2. Changes in restricted shares
□Applicable √Non-applicable
(II) Security offering and listing
1. Security offering in previous three years
□Applicable √Non-applicable
2. Changes of total shares and structures as well as outcome of asset-liability structures
□Applicable √Non-applicable
3. Current shares held by internal staffs
□Applicable √Non-applicable
(III) Shareholders and actual controller
1. Total shareholders at period-end
Till end of reporting period, total shareholders of the Company amounting to 14,246.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
2. Shares held by top ten shareholders
√Applicable □Non-applicable
Particulars about the shares held by the top ten shareholders
Proportion Amount of the Shares pledged or frozen
Nature of Total amount of
Shareholders (full name) of shares restricted shares
shareholders shares held Share status Amount
held (%) held
State-owned pledged 0.00
China Potevio Company Limited 53.49% 115,000,000 115,000,000
legal person frozen 0.00
Foreign natu
CHAN KEUNG 0.60% 1,289,600 0
re person
ING ASIA PRIVATE BANK Foreign legal
0.45% 959,199 0
LIMITED person
Domestic
Wang Feifei 0.27% 588,008 0
nature person
Domestic
Shu Jianping 0.23% 500,500 0
nature person
Domestic
Gu Feng 0.21% 442,400 0
nature person
Domestic
Chen Chaofan 0.19% 416,979 0
nature person
Domestic
Yan Zengqing 0.19% 399,806 0
nature person
Domestic
Long Jianqiu 0.16% 340,000 0
nature person
Domestic
Zhao Guanghui 0.15% 331,550 0
nature person
Except for first largest shareholder, it’s unknown by the Company for shares pledge or frozen
Explanation of shareholders
held by other shareholders.
Particular about circulated shares held by top 10 shareholders
√Applicable □Non-applicable
Amount of circulated Type/amount of shares
Shareholders shares held at
Type Amount
period-end
CHAN KEUNG B-share
1,289,600 1,289,600
ING ASIA PRIVATE BANK LIMITED B-share
959,199 959,199
Wang Feifei B-share
588,008 588,008
Shu Jianping B-share
500,500 500,500
Gu Feng B-share
442,400 442,400
Chen Chaofan B-share
416,979 416,979
Yan Zengqing B-share
399,806 399,806
Long Jianqiu B-share
340,000 340,000
Zhao Guanghui B-share
331,550 331,550
Liu Yunxiang B-share
326,458 326,458
Explanation on associated relationship among the top ten shareholders or (and) consistent action
Among the top ten shareholders, China Potevio Company Limited is neither a related party nor a person acting in
concert with the others. It’s unknown by the Company whether there are related parties or persons acting in
concert among the other shareholders. The Company does not know whether there are related parities or persons
acting in concert among the top ten holders of tradable shares.
Strategy investor or general legal person comes to top ten shareholders of the Company due to new shares
allocation
□Applicable √Non-applicable
3. Controlling shareholders and actual controller
(1) Changes of controlling shareholders and actual controller
□applicable √Non-applicable
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(2) Introduction of controlling shareholders and actual controller
Whether has new actual controller or not
□Yes √No □Non-application
Name of actual controller SASAC
Type of actual controller SASAC
Explanations:
(3) Block diagram of property rights and controlling relationship between the Company and
actual controller
State-owned Assets Supervision and Administration Commission of the State Council
100%
China Putian Corporation
100%
China Potevio Company Limited
53.49%
Nanjing Putian Telecommunications Co., Ltd.
(4) Actual controller controlling the Company by means of entrust or other assets
management
□Applicable √Non-applicable
4. Other legal person’s shareholders with over ten percent shares held
□Applicable √Non-applicable
(IV) Convertible bonds
□Applicable √Non-applicable
V. Directors, Supervisors and Senior Executives
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(I) Changes of shares held by directors, supervisors and senior executive
Whether
Amount of received
Amount of Amount of
shares Including: remuneration
held at shares Shares held stock option
increase in restricted Reasons for from
Name Title Sex Age Office dated from Office dated ended period-begin( decreased in at period-end held at
this shares held changes shareholders’
Share) this period (Share) period-end
period(Share (Share) unit or other
(Share) (Share)
) related unit
or not
Sun Liang Chairman, Director M 48 2012-05-17 2015-05-17 0 0 0 0 0 0 - Yes
Wang Deputy chairman,
F 46 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
Hong GM
Director, Deputy
Li Tong M 42 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
GM
Han Shu Director M 49 2012-05-17 2015-05-17 0 0 0 0 0 0 - Yes
Li Ying Director F 46 2012-05-17 2015-05-17 0 0 0 0 0 0 - Yes
Huang
Director M 39 2012-05-17 2015-05-17 0 0 0 0 0 0 - Yes
Haodong
Zhang Independent
M 68 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
Shunyi Director
Zheng Independent
F 65 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
Aimei Director
Ding Independent
M 56 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
Haiyan Director
Yang
Chief Supervisor M 60 2012-05-17 2015-05-17 0 0 0 0 0 0 - Yes
Zhihe
Tang Di Supervisor F 36 2012-05-17 2015-05-17 0 0 0 0 0 0 - Yes
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Liu
Supervisor F 41 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
Xiaodong
Jiang
Deputy GM M 50 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
Hanbin
Deputy GM、
Zhang
Secretary of the M 37 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
Shenwei
Board
Lu
Deputy GM M 52 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
Yongshu
Chief accountant,
Shi Lian M 40 2012-05-17 2015-05-17 0 0 0 0 0 0 - No
CFO
Kong
Former director M 47 2011-06-17 2012-05-17 0 0 0 0 0 0 - Yes
Shanyou
Zhu
Former supervisor M 50 2011-06-17 2012-05-17 0 0 0 0 0 0 - Yes
Hongchen
Total -- -- -- -- -- 0 0 0 0 0 0 -- --
Directors, supervisor and senior executives who awarded equity incentive in report period
□Applicable √Non-applicable
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(II) Representation
Representation in shareholders’ unit
√Applicable □Non-applicable
Whether
received
Service remunerati
Name Shareholders’ unit Post occupied Service term from term on from
ended shareholde
rs’ unit or
not
China Potevio Company
Sun Liang Limited Vice president 2011-03-03 Yes
Deputy general manager Yes
China Potevio Company of telecommunication
Han Shu Limited segment and general 2009-01-19
manager of sales &
marketing segment
General manager of Yes
China Potevio Company human resources
Li Ying Limited 2010-12-16
department
General manager of
China Putian Corporation
Li Ying human resources 2011-12-22 No
department
Deputy general manager
of broadcasting business
Huang China Potevio Company
segment and general 2007-12-13 Yes
Haodong Limited
manager of marketing
segment
China Potevio Company General manager of audit
Yang Zhihe 2008-03-18 Yes
Limited supervision department
China Potevio Company
Yang Zhihe Supervisor 2008-08-21 Yes
Limited
Deputy director of
discipline inspection
Yang Zhihe China Putian Corporation 2011-08-15 No
works of the party
committee
Deputy manager of the
China Potevio Company comprehensive
Tang Di 2008-05-07 Yes
Limited management department
in charge of legal affairs
Assistant to general
China Potevio Company
Tang Di manager of audit 2011-11-21 Yes
Limited
supervision legal office
Explanation
on job
occupation in
10
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
shareholders’
unit
Representation in other unit
√Applicable □Non-applicable
Receive
Expiring
Name of remunerati
Position taken in other Commencing date date for
person taking Name of other unit on from
unit for service term service
positions other unit
term
or not
Wuhan Fenghuo Putian
Director, chairman (legal
Sun Liang Information Technology Co., 2009-09-09 No
representative)
Ltd.
Putian Peace Technology Co., Director, chairman (legal
Sun Liang 2012-02-07 No
Ltd. representative)
Li Ying Beijing Capitel Co., Ltd. Director 2008-01-08 No
Nanjing Putian High-tech
Li Tong Director 2007-11-20 No
Industry Park
Huang National Engineering Lab for
Director 2010-06-08 No
Haodong Digital TV (Beijing)
Huang Putian Peace Technology Co.,
Director 2012-02-07 No
Haodong Ltd.
Supervisor, chairman of
Yang Zhihe Chengdu Putian Cable Co., Ltd. the supervisory 2008-05-16 No
committee
Putian Yintong Information
Tang Di Director 2010-03-24 No
Technology Co., Ltd.
Supervisor, chairman of
Putian Peace Technology Co.,
Tang Di the supervisory 2012-02-07 No
Ltd.
committee
Zhang Nanjing University of Posts and
Professor 1995-07-15 Yes
Shunyi Telecommunications
Zheng Aimei Tianye Tax Affairs Office Principal 2006-09-26 Yes
Communication University of
Ding Haiyan Vice president 2004-09-15 Yes
China, Nanjing
Explanation
on job
occupation in
other unit
(III) Remuneration of directors, supervisors and senior executives
Decision making The Company paid no remuneration to directors and supervisors, and directors and
process for supervisors taking administrative roles in the Company received their remuneration for
remuneration of such administration roles. Independent directors received allowances for independent
directors, supervisors directors from the Company, the specific amount of which was decided by general
and senior meetings. The remuneration standards and review method for senior management was
11
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
management subject to determination by the Board.
Basis for
determination of the Annual remuneration system based on performance was applicable to the senior
remuneration of management of the Company. Examination on and remuneration paid to senior
directors, supervisors management was determined by reference to the Company’s production and operation
and senior indicators and completion progress of works assumed by senior management.
management
Actual payment of the
remuneration of In the first half of 2012, an aggregate of RMB650, 600 (tax included) was actually paid
directors, supervisors to directors and supervisors taking administrative positions in the Company, independent
and senior directors and senior management.
management
(IV) Changes of directors, supervisors and senior executives
Name Post holding Changes Date of changes Reasons of changes
Sun Liang Chairman Newly elected 2012-05-17 Selection for new session of the Board
Selection for new session of the Board,
Wang Deputy chairman、 Newly elected
2012-05-17 addition engagement for another
Hong GM and engaged
session of senior management
Newly elected
Li Tong Director, Deputy GM 2012-05-17 Selection for new session of the Board
and engaged
Han Shu Director Newly elected 2012-05-17 Selection for new session of the Board
Li Ying Director Newly elected 2012-05-17 Selection for new session of the Board
Huang
Director Newly elected 2012-05-17- Selection for new session of the Board
Haodong
Zhang
Independent Director Newly elected 2012-05-17 Selection for new session of the Board
Shunyi
Zheng
Independent Director Newly elected 2012-05-17 Selection for new session of the Board
Aimei
Ding
Independent Director Newly elected 2012-05-17 Selection for new session of the Board
Haiyan
Yang Selection for new session of the
Chief Supervisor Newly elected 2012-05-17
Zhihe supervisory committee
Selection for new session of the
Tang Di Supervisor Newly elected 2012-05-17
supervisory committee
Liu Selection for new session of the
Supervisor Newly elected 2012-05-17
Xiaodong supervisory committee
Jiang Addition engagement for another
Deputy GM Newly engaged 2012-05-17
Hanbin session of senior management
Deputy GM,
Zhang Addition engagement for another
Secretary of the Newly engaged 2012-05-17
Shenwei session of senior management
Board
Lu Addition engagement for another
Deputy GM Newly engaged 2012-05-17
Yongshu session of senior management
Addition engagement for another
Shi Lian Chief accountant Newly engaged 2012-05-17
session of senior management
Kong
Director Resign 2012-05-17 Expire of service term
Shanyou
Zhu
Supervisor Resign 2012-05-17 Expire of service term
Hongchen
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(V) Staff of the Company
Person on-jobs 1,775
Retirement person whose charges undertake by the
492
Company
Professional categories
Types of professional category Numbers of professional category
Production staff 411
Salesman 589
Technician 419
Financial staff 45
Administration staff 127
Education background
Type of education background Numbers (people)
High school and below 484
Junior college 575
Undergraduate 689
Master 27
Doctor
Post-doctoral
Explanation of staff
The professional staff constitution of the Company also included 77 persons in charge of purchase and stock, and
107 supporting staff.
VI. Report of the Board
(I) Management discussion and analysis
During the reporting period, based on its annual operation target, the Company managed to improve
operation quality and record steady progress with the principles of operation of human being,
platform and resources pursuant to the guidance determined at the beginning of the year. The
Company carried out following works during the reporting period:
Firstly, strengthened market development and stabilized its industry position. Oriented for the
industry development target, namely being advanced among the industry, famous among domestic
market and competitive among international market, the Company was dedicated to build
synergistic competitiveness among its internal industry chain by virtue of its background of being a
competitive state-owned enterprise. Through focusing on different competition in respect of
products and services, the Company realized broad coverage of market network, enhanced brand
recognition and produced industry influences. When expanding market share, the Company also
focused on growth quality based on its operation principles of operation quality. More resources
were allocated in blind regions, aiming to achieve reasonable allocation of product structure.
Commercial review was strengthened to improve profitability.
Secondly, innovation and transformation in development to improve profitability. Its traditional
industry was subject to limited profit-making space due to the influence of counter bid of market. In
order to accelerate industry transformation and upgrade and cultivate strategic new industry, the
13
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Company continued to combine self-innovation and integrated innovation and to enhance value in
customer application. The Company also strengthened industry synergy and filter industry
applications. Meanwhile, by improving its professional service ability, the Company transformed
from single product supplier to integrated solution service provider in respect of its industry chain
layout.
Thirdly, controlled capital risk and improved operation quality. The further increased capital
management to prevent from financial risk. With promotion of management over both income and
expenditure, the Company realized highly-concentrated management over capital. Management and
control over capital was strengthened by the Company. In particular, capital occupation fee was
charged to business segments to guarantee high efficient application of capital resources. The
Company conducted analysis on the structure of book ages and inventory ages, focusing on
recovery of account receivables aging over 6 months. Arrears owed over 1 year was classified for
specific accounting, and recovery of significant account receivables aging over 2 years was
recorded in the Company’s legal system. When necessary, legal proceedings would be raised to
effectively avoid bad debt risk.
The Company paid more attention to contract quality and commercial review, gross profit and
credit terms of accounts. As for delivery of goods involving significant account receivables and
high risk, second-level units shall raise attention to the account receivables and inventory, and adopt
effective measures to control relevant risks. Cooperation between various internal departments was
strengthened in terms of production, transportation, technical support and business management,
aiming to recovery of sales account. Efforts were made to improve management of normal sales
accounts and to conduct regular trace on overdue accounts. Particularly, each account was checked,
person in charge was determined, and prepared issuance and recovery plan for each arrear within a
limited period.
Fourthly, allocated resources generally and coordinated industry development. Currently, the
Company was increasingly subject to shortage of resources, certain factors including capital,
location and new technology limited its future development. In order to effectively take use of the
existing resources and platform, the Company, under the guidance of three operation principles,
centralized allocation, made reasonable utilization of resources and maximized resources benefits
by industry structure adjustment and reorganization of organization structure.
Fifthly, promoted defined management and improved operation quality. Facing continuous increase
of production cost relating to raw materials and utilities and labor costs and continuous decline of
selling price arising from centralized purchase, the Company continued to strengthen defined and
professional management, actively drove management innovation and continuously adapted to
economic pattern transformation needs, to serve and support industry development.
Sixthly, strengthened party group construction, built healthy operation environment and promoted
harmonious development.
With efforts from entire employees, the Company recorded operation income of
RMB1,349,963,182.82, representing an increase of 15.67% as compared to the same period of last
year; operation profit of RMB13,543,231.97, representing a decrease of 16.57% as compared to the
same period of last year; net profit of RMB6,038,203.37, representing a decrease of 21.11% as
compared to the same period of last year
Analysis of financial position and operation results of the Company for the reporting period was as follows:
14
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item 30 June 2012 31 December 2011 Increase/decrease Change
(RMB)
Total assets 2,271,900,285.79 2,050,755,987.18 221,144,298.61 10.78%
Shareholders' equity 378,218,363.67 372,273,328.48 5,945,035.19 1.60%
Accounts receivable 899,136,010.05 736,141,568.31 162,994,441.74 22.14%
Inventory 595,638,108.81 552,349,491.53 43,288,617.28 7.84%
account payable 1,064,521,817.87 906,751,164.90 157,770,652.97 17.40%
January-June 2012 January-June 2011 Increase/decrease Change
(RMB)
operating income 1,349,963,182.82 1,167,066,717.47 182,896,465.35 15.67%
operating cost 1,167,040,803.45 1,016,732,478.71 150,308,324.74 14.78%
operating profit 13,543,231.97 16,232,593.95 -2,689,361.98 -16.57%
selling expenses 85,918,634.36 67,934,941.52 17,983,692.84 26.47%
Management costs 61,694,140.49 51,471,437.38 10,222,703.11 19.86%
Financial costs 16,942,792.36 12,030,031.87 4,912,760.49 40.84%
asset impairment loss 1,999,859.94 1,999,655.74 204.20 0.01%
Investment income 1,462,045.66 2,853,983.65 -1,391,937.99 -48.77%
Net non-operating 823,195.65 1,280,969.08 -457,773.43 -35.74%
income/expense
Total profit 14,366,427.62 17,513,563.03 -3,147,135.41 -17.97%
Net profit attributable to 6,038,203.37 7,654,146.53 -1,615,943.16 -21.11%
owners of the parent
Net cash flow from -28,209,564.55 -123,457,082.73 95,247,518.18 77.15%
operating activities
Net cash flow from -6,623,050.43 -6,344,782.30 -278,268.13 -4.39%
investment activities
Net cash flow from 25,998,195.54 48,687,455.47 -22,689,259.93 -46.60%
financing activities
For the first half year, the Company realized operation income of RMB1,349,963,200, total profit of
RMB14,366,400 and sales profit margin of 1.06%, representing relatively sales profit margin as
compared to 1.5% of the same period of last year. Though gross profit margin slightly increased,
operation profit from products (excluding extraordinary gains and losses) was slightly lower than
that of last year due to increase of expenses as compared to the same period of last year.
As compared to the beginning of the year, account receivables increased by RMB162, 994,400,
accounting for 39.58% of the total assets as of period-end, representing relatively high proportion.
Increase of account receivables was mainly attributable to affect of seasonality on recovery.
Recovery didn’t accord with sales increase. Based on analysis in respect of previous trend, sales
recovery was expected to turn better in the second half year.
Net carrying value of inventory as of period-end was RMB 595,638,100, representing an increase of
RMB43, 288,600, accounting for 26.22% of total assets. For the first half year, the average
inventory occupation was RMB585, 435,300, with turnover days of 88.45 days. Increase of
inventory was mainly due to increase of goods delivered. Generally, inventory quality risk was not
15
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
material, while increase of inventory occupied part capital. The Company would continue to
strengthen management of goods by prompt reception of receipt confirmation after delivery of
goods. Besides, written reminder in respect of goods delivered was prepared, and sales staffs were
urged to conclude contract as soon as possible to realize sales.
Cash and cash equivalents of the Company for the first half year decreased by RMB8,821,000 as
compared to year-begin, and the Company realized net cash outflow RMB28,209,600 from
operating activities, net cash outflow RMB6,623,100 from investment activities, and net cash
inflow RMB25,998,200 from financing activities.
Net cash outflow from investment activities was mainly attributable to later stage input for plant
construction of phase II of Tianji Building, RMB3,112,900 expenditure for construction of
warehouse of the headquarter and other fixed assets investment expenditure.
Net cash outflow from operating activities was mainly attributable to (i) substantial cash outflow
arising from significant account payables paid at year-begin; (ii) purchase for inventory increased
since sales increased, resulting increase of payment; (iii) account receivables increased, resulting in
relatively small cash inflow; and (iv) the Company faced increasing labor costs and expenses as
sales expanded, resulting in increase of cash costs and various taxes as compared to previous year.
In order to ease capital pressure, the Company would strengthen collection of account receivables
and control of account paid in advance and account payables and purchase volume, so as to
guarantee dynamic balance of liquidity.
Whether the actual operation results differed from the profit forecast or operation plan which was
publicly disclosed by the Company over 20%:
□ Yes √ No □ Non-applicable
Operation and results analysis of major subsidiaries and shareholding companies of the Company
Operation results of major subsidiaries for the first half lf 2012 (RMB):
Interest
held by Total Net
Name of Major products Registered Total assets Net assets as Operating
the operating profit/(net
company or services capital as at year-end at year-end profit
Compa income losses)
ny
Nanjing 98.24% Manufacture 34,205,147. 366,726,634. 76,285,495.8 290,912,633.3 7,986,900.4 7,179,539.26
South and sales of 83 23 3 4 7
Telecommuni telecommunica
cation Co., tion products
Ltd.
Nanjing 45.77% 12,000,000 204,307,749. 67,617,300.9 122,022,465.7 4,405,151.7 3,689,587.85
Putian Tianji Production and 03 5 7 8
Building sales of
Smart Co., building smart
Ltd. products
Nanjing 78% Research & 10,000,000 29,474,152.6 22,820,405.4 20,774,458.79 1,608,814.7 2,283,539.66
Putian development, 3 8 6
Network Co., production and
16
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Ltd. sales of
telecommunica
tion, network
and electronic
equipment-relat
ed software
Nanjing 50.70% Manufacture 10,000,000 165,350,613. 38,269,883.4 116,021,362.3 6,923,083.2 7,254,145.07
Putian and sales of 54 4 0 7
Changle outdoor wiring,
Telecommuni branch wiring
cation equipment,
Equipment outdoor and
Co., Ltd. generator room
network chassis
equipments and
telecommunica
tion electronic
products
Nanjing Bada 60% Manufacture of 11,301,400 34,018,333.5 7,142,108.02 15,367,077.41 -786,843.36 -848,319.96
Telecommuni card terminal 9
cation telecommunica
Equipment tion
Co., Ltd. equipments
Putian 90% Import-export HKD2,000, 6,705,115.12 -16,926,478. 2,236,257.81 -48,569.40 -48,569.40
Telecommuni trading of 000 13
cation (Hong telecommunica
Kong) Co., tion products,
Ltd. R&D of
telecommunica
tion products,
R&D and
transfer of
high-tech
technology,
technology
trading
Nanjing 99.42% Production, 90,190,000 26,765,074.7 37,376,026.8 8,491,345.87 81,975.16 81,975.16
Putian processing and 2 7
Wangzhi sales of
Telecommuni electronic
cation Co., products
Ltd.
Nanjing 99.98% Manufacture 14,000,000 7,431,436.27 4,668,560.72 3,848,190.89 -2,124.17 -57,838.28
Putian and sales of
17
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Information electronic
Technology telecommunica
Co., Ltd. tion
equipments
Nanjing 70% Assemble of 5,000,000 3,089,907.63 426,985.76 2,659,863.27 -387,129.69 -266,308.74
Putian electronic
Telecommuni accessories,
cation R&D and sales
Technology of electronic
Co., Ltd. products and
telecommunica
tion
equipments
Nanjing 75% Production and USD5,200,0 131,956,400. 89,714,184.0 53,297,064.38 2,640,171.6 2,072,328.93
Mennekes sales of 00 09 8 3
Electrical industrial plug
Appliance and socket
Co., Ltd.
Companies, from which the investment income accounted for over 10% of the Company’s consolidated net profit
(RMB), were as follows:
Sharehol
Total operating
ding
Major products or Net assets as at income for the Net profit for
Name of investee proportio
services year-end year the year
n of the
Company
Nanjing Puzhu 50.00% Development and 29,208,484.05 50,058,576.74 2,499,075.20
Optical Network production of ODN
Co., Ltd. products, optical
telecommunication
parts and RFTS
All risk factors which may adversely affect future development strategy and realization of operation
target
Industry risk: in May 2012, the Ministry of Industry and Information Technology issued the
Twelfth-five Year Development Plan of Telecommunication industry, pursuant to which, the
development target of Wide Band China strategy was determined. However, due to the slow
economic recovery, operators reduced network expenses substantially. In terms of general industry,
construction for global 3G network has been out of time, and layout for 4G just started, representing
limited contribution to telecommunication operators in future 2 to 3 years. Besides,
telecommunication industry has transformed from speech sounds to mobile networks, resulting in
challenges to telecommunication equipment market. Optical fiber wide band market which was the
core development during the twelfth-five year plan became the new investment project, leading to
increasing furious industry competition. Group bidding of operators directly resulted in great
decline of gross profit margin of products.
18
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Operational and financial risks: due to that recovery of capital was inconsistent with the increase of
sales income, the Company faced tight liquidity. Net cash outflow from operating activities meant
that it was difficult to meet capital requirements for further expansion of operation scale.
1. Main business and operations
(1) Statement of main business classified according to industries and products
Unit: RMB
Increase or Increase or Increase or
Classified decrease of decrease of decrease of gross
according to Operating Gross profit ratio operating revenue operating cost profit ratio over
Operating cost
industries or revenue (%) over the last same over the last same the last same
products period of last year period of last year period of last year
(%) (%) (%)
According to industries
Manufacture of
telecommunicati 1,287,158,567.25 1,119,838,957.60 13% 11.63% 10.98% 0.51%
on equipment
Manufacture of
appliance 52,013,535.66 39,522,573.72 24.01% - - -
equipment
According to products
Telecommunicati
1,287,158,567.25 1,119,838,957.60 13% 11.63% 10.98% 0.51%
on products
Appliance
52,013,535.66 39,522,573.72 24.01% - - -
products
Explanation on main business classified according to industries and products
The major operating income and costs of the Company for the first half year included no electrical appliances.
The Company acquired 25% equity interests in Nanjing Mennekes Electrical Appliances Co., Ltd. in December
2011, which increased its shareholding in such company form 50% to 75%. Since 1 January 2012, profit statement
of this company was consolidated into the Company, thus the major operating income and costs of the Company
for the year included electrical appliances.
Reasons for significant change of gross profit margin as compared to the same period of last year
There was no significant change in gross profit margin for the year.
19
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(2) Main business classified according to areas
Unit: RMB
Increase/decrease in revenue from
Areas Operating revenue operations over the same period of
last year (%)
North China 232,185,592.89 -14.65%
East China 722,520,565.52 28.82%
Others 384,465,944.50 20.11%
Explanation on main business according to areas
North of China represented Beijing, Tianjin, Shanxi, Hebei, and Inner Mongolia; east of China represented
Shanghai, Shandong, Jiangsu, Anhui.
Constitution of major businesses
The major business of the Company was manufacture and sales of telecommunication products.
(3) Explanation on reasons of material changes in main operations and its structure
□Applicable √Non-applicable
(4) Explanation on reasons of material changes in profitability (gross profit ratio) of main
operations compared with that of last year
□Applicable √Non-applicable
(5) Analysis on reasons of material changes in profit structure compared with the previous
year
√Applicable □Non-applicable
Item January-June 2012 January-June 2011 Increase/decrease (R Change
MB)
Operating income 1,349,963,182.82 1,167,066,717.47 182,896,465.35 15.67%
Operating costs 1,167,040,803.45 1,016,732,478.71 150,308,324.74 14.78%
Operating profit 13,543,231.97 16,232,593.95 -2,689,361.98 -16.57%
Selling expenses 85,918,634.36 67,934,941.52 17,983,692.84 26.47%
Administration expenses 61,694,140.49 51,471,437.38 10,222,703.11 19.86%
Finance expenses 16,942,792.36 12,030,031.87 4,912,760.49 40.84%
Investment income 1,462,045.66 2,853,983.65 -1,391,937.99 -48.77%
Net non-operating 823,195.65 1,280,969.08 -457,773.43 -35.74%
income/expense
Total profit 14,366,427.62 17,513,563.03 -3,147,135.41 -17.97%
Net profit attributable to 6,038,203.37 7,654,146.53 -1,615,943.16 -21.11%
owners of the parent
20
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Items experiencing significant changes in terms of amount and scope, and reason thereof:
Main reasons for increase of selling expenses: after-sale service fee, entertainment expenses, salary costs,
transportation costs and traveling expenses increased as sales scale expanded; consolidation of statement of
Nanjing Mennekes contributed increase of RMB5.89 million for this period.
Main reasons for increase of administration expenses: technical development expenses increased
RMB4,417,400 since the Company allocated more resources in technical development; salary costs
increased by RMB1,708,300 and office expenses increased by RMB3,323,800; consolidation of statement of
Nanjing Mennekes contributed increase of RMB2.96 million for this period.
Main reasons for increase of financial expenses: interest costs increased due to the raise of bank lending rate
and discount rate of bank acceptance draft.
Main reasons for decrease of investment income: the Company acquired equity interests in Nanjing
Mennekes Electrical Appliances Co., Ltd. at the end of 2011. According to requirements of accounting
principles, the company was accounted by cost method rather than equity method for this period, leading to
decrease of RMB3, 116,700 of investment income as compared to the same period of last year; investment
income increased by RMB1, 683,900 due to the increase of profit of the Company’s joint venture Nanjing
Puzhu Optical Network Co., Ltd., representing an increase of RMB1, 709,200 as compared to the same
period of last year.
(6)Business nature, major products or services and net profit of Shareholding Company
contributing over 10% net profit
√ Applicable □ Non-applicable
Name of investee Sharehol Major products or Net assets as at Total operating Net profit for
ding services year-end income for the the year
proportio year
n of the
Company
Nanjing Puzhu 50.00% Development and 29,208,484.05 50,058,576.74 2,499,075.20
Optical Network production of ODN
Co., Ltd. products, optical
telecommunication
parts and RFTS
(7)Matters and problems concerning operation
With increasing scale of production and sales, the Company also faced certain matters and problems,
including: its traditional industry was subject to limited profit-making space due to the influence of counter
bid of market, which produced press on the Company about transformation; shortage of resources was not
able to meet the requirements of industry development; relatively high gearing ratio and increasing financial
risk; ability of expanding new industry was limited and it was still hard to make industry structure
adjustment; there was space for the headquarter to allocate resources on a general basis.
21
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
2. Internal control mechanism related with fair-value measurement
□Applicable √Non-applicable
3. Foreign currency financial assets and financial liabilities held
√Applicable □Non-applicable
Unit: RMB
Gains/losses of Accumulative
Decrease of
At the variation of fair variation of fair At the
Item accrual in this
period-begin value in this value reckoned period-end
period
period into equity
Financial assets
Including: 1.
Financial assets at fair
value through current
gains and losses
Including;
Derivative financial
assets
2. Loans and
8,734,677.22 5,603,134.20
receivables
3. financial assets
available-for-sale
4. investments held
to maturity
Subtotal of financial
8,734,677.22 5,603,134.20
assets
Financial liabilities 11,007,279.09 5,380,633.16
(II) Investment of the Company
1. General Application of the raised proceeds
□Applicable √Non-applicable
22
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
2. Commitments on projects of raised funds
□Applicable √Non-applicable
3. Changes of projects of raised funds
□Applicable √Non-applicable
4. Investment on major projects of non-raised funds
√Applicable □Non-applicable
(III) The modification of Board to the business plan for the second half of the year
□Applicable √Non-applicable
(IV) Prediction of business performance from January – September 2012
Estimation on accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation on reason
□Applicable √Non-applicable
(V) Explanation on “Qualified Opinion” from the Certified Public Accountants in the report
period by the Board of Directors
□Applicable √Non-applicable
(VI) Explanation of the Management on changes and disposal of the issues involved in
“Qualified Opinion” from the Certified Public Accountants in the last year by the Board of
Directors
□Applicable √Non-applicable
(VII) Stating the discussion results issued by the Board on changes in the Company’s
accounting policies and accounting estimates or reasons for material accounting error
correction and influences thereof
□ Applicable √ Non-applicable
(VIII) Determination and implementation of cash dividend policies of the Company
1. Preparation of cash distribution policy:
During the reporting period, pursuant to the notice on further implement issues related to cash distribution of
listed company issued by the CSRC, the notice on further implement requirements related to cash
distribution of listed company issued by Jiangsu securities regulatory bureau and relevant requirements of
Shenzhen Stock Exchange, the Company amended terms of the Articles of Association concerning profit
distribution policy, to define cash distribution policy specifically. The resolution regarding to such
amendment was considered and approved at the 3rd meeting of the 6th board of directors of the Company, and
then approved at the 2nd extraordinary general meeting for 2012.the preparation and decision-making
23
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
procedures about the cash distribution policy was open and transparent, meeting relevant requirements. The
amended articles of association further defined the pattern of profit distribution, specific conditions and
proportion for cash distribution, specific conditions for issuing stock dividend, consideration procedure of
profit distribution scheme, conditions and decision-making of change in profit distribution policy. Various
channels were available for receiving opinions from independent directors and minority shareholders, which
enhanced transparency and availability of profit distribution policy and further improved its profit
distribution.
2. Implementation of cash distribution policy:
Due to that the previous accumulated losses haven’t been totally compensated in recent 3 years, which meant
that condition for implementing profit distribution was not satisfied as required by the Company Law and the
Articles of Association, the Company didn’t make profit distribution. In future, the Company will realize
return for shareholders by further enhancement in corporate operation and management and improvement in
operation results.
(IX) Plan of profit distribution or capital reserve capitalizing
□Applicable √Non-applicable
(X) Positive retained profit accumulated at end of 2011 without cash distribution carried out
□Applicable √Non-applicable
(XI) Other events disclosed
1. Preparation and implementation of insider management policy in respect of inside information
In order to strengthen management over inside information and maintain fair information disclosure, the Company
has prepared its insider management policy in respect of inside information according to relevant laws and
regulations. During the reporting period, the Company strictly observed provision of such policy to register
personal information about insiders, so as to prevent information leakage. During the reporting period, no director,
supervisor and senior management of the Company was found to trade in its shares before disclosure of material
sensitive information which affected share price of the Company. Besides, the Company received no regulatory
measures and punishment by relevant regulatory authorities for conducting or involving inside transaction due to
its insider of inside information registration system.
2. In the reporting period, resolution about transferring 17.79% equity interests in Shanghai Yulong Biology
Science & Technology Co., Ltd. and Qufu Yulong Biology Science & Technology Co., Ltd. was approved at the
board meeting and general meeting of the Company. Details were set out in the paragraph Disposal of assets in the
section V. Significant matters.
3. Innovation in technology: the Company continued to make innovation based on market direction, and to
improve product technology based on needs from industrial users. The Company developed a series of new
products including heat-melting site connector, CP MSAP02A multi-business optical access equipments, FTTH
optical splitter box and smart wiring system, etc. a total of 17 patents were obtained, including 1 inventory patent
and 16 utility model patents.
24
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
4. Saving energy and reducing emission: during the reporting period, through increase of inspection and
supervision over the power and water utilization of its underlying organizations, increase of promotion and
inspection over power and water utilization and adoption of various measures to control water and power
utilization, the Company used 94% and 88% power and water as compared to the corresponding period of last
year.
(XII) Liabilities, credit changes and cash arrangement for debt paying in later year (Only
applies to listed company with corporate convertible bonds offered)
□Applicable √Non-applicable
VII. Significant Event
(I)Corporate governance
Pursuant to requirements of the Company Law, the Securities Law, Governance Rules of Listed Company
and Listing Rules Governing Shares of Shenzhen Stock Exchange, the Company continuously improved its
corporate governance structure, established healthy internal control system and standardized its operation.
During the reporting period, as required by the relevant provisions of the CSRC and Jiangsu securities
regulatory bureau, the Company prepared implementation scheme for annual internal control system to
promote construction of internal control system thoroughly. Pursuant to the notice on further implement
issues related to cash distribution of listed company issued by the CSRC, the Company amended terms of the
Articles of Association concerning profit distribution policy, to further improves its profit distribution policy.
As of the end of the reporting period, the corporate governance structure was reasonable, since under its
normal standardized operation, general meeting, the Board and the supervisory committee can perform their
respective function according to the Company Law and the Articles of Association. Relevant approval and
information disclosure in respect of its material external investment and related transactions were conducted
according to requirements of laws and regulations. The actual condition of its corporate governance met
requirements of relevant national laws, regulations and regulatory documents issued by the CSRC in respect
of listed company governance.
(II) Implementation of profit distribution plan, capital reserve capitalizing or shares offering
that plan out previously and carry out in this reporting period
□Applicable √Non-applicable
(III) Material lawsuits and arbitrations
□Applicable √Non-applicable
No material lawsuits and arbitrations occurred in this period
25
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(IV) Related event of bankruptcy reorganization
□Applicable √Non-applicable
(V) Equity of other listed company and stock jointly financial enterprise held by the Company
1. Security investment
□Applicable √Non-applicable
Explanation on security investment
2. Equity of other listed company held by the Company
□Applicable √Non-applicable
Explanation on equity of other listed company held by the Company
3. Equity of non-listed financial enterprise held by the Company
□Applicable √Non-applicable
Explanation on equity of non-listed financial enterprise held by the Company
4. Buying and selling shares of other listed company
□Applicable √Non-applicable
Explanation on shares dealing of other listed company
(VI) Assets transaction
1. Assets purchased or acquired
□Applicable √Non-applicable
Explanation on assets purchased
2. Assets sold
□Applicable √Non-applicable
Explanation on assets sold
On 21 June 2012, resolution about transferring 17.79% equity interests respectively in Shanghai Yulong
Biology Science & Technology Co., Ltd. and Qufu Yulong Biology Science & Technology Co., Ltd. was
approved at the 2nd meeting of the 6th board of the Company, and subsequently approved at the 1st
extraordinary general meeting for 2012 on 12 July 2012. The price of such equity transfer was based by
reference to the valuation price of shareholder’s equity concerning such transferred equity interests held by
the Company. The price for sale was not less than RMB40, 657,400, including RMB25, 039,700 and RMB15,
617,700 for Shanghai Yulong and Qufu Yulong respectively. This equity transfer constituted no related
transaction.
Details about this equity transfer were available on the announcement relating to transfer of equities in
Shareholding Company dated 26 June 2012.
3. Assets replacement
□Applicable √Non-applicable
Explanation on assets replacement
4. Business combination
□Applicable √Non-applicable
5. Progress of the events and their influence on the Company’s operating results and financial
status in the report period after the Report on Assets Restructure or Public Notice on
26
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Acquisition and Sales of Assets being published
√Applicable □Non-applicable
The Company traded the 17.79% equity interests respectively in Shanghai Yulong and Qufu Yulong by
listing on Shanghai United Property Exchange on 19 July 2012, with price of RMB25, 039,800 and RMB15,
617,800. Notice for such trade by listing for the first time terminated on 16 August 2012.
The aforesaid equity transfer brought no affect on the operation results and financial position of the
Company for the first half of 2012.
(VII) Explanation on shareholding increase proposed or implemented by largest shareholder
of the Company and its persons acting in concert in reporting period
□Applicable √Non-applicable
(VIII) Implementation and its influence of equity incentive
□Applicable √Non-applicable
(IX) Significant related transaction
27
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
1. Related transaction related to daily operation
√ Applicable □Non-applicable
Reason for
material
Proportion to
Pricing Amount of Settlement Affect on difference
Price of related amount of
Related Type of related Content of related principles of related method of the profit Market price between price
Related relationship transaction transaction or
party transaction transaction related transaction related of the (RMB’0000) of transaction
(RMB’0000) the same type
transaction (RMB’0000) transaction Company and market
(%)
price for
reference
China
Telecommunication Banking
Potevio Controlling shareholder Selling goods Market price 4,939.45 4,939.45 3.69% Immaterial
products transfer
Co., Ltd
Putian IT
Research Subsidiary of controlling Telecommunication Banking
Selling goods Market price 15.81 15.81 0.01% Immaterial
Institute shareholder products transfer
Co., Ltd.
Nanjing
Putian
Hongyan Subsidiary of controlling Banking
Selling goods Other products Market price 0.45 0.45 0% Immaterial
Electrical shareholder transfer
Appliance
Co., Ltd.
China
Purchase Telecommunication Banking
Potevio Controlling shareholder Market price 2.55 2.55 0% Immaterial
goods products transfer
Co., Ltd
Nanjing
Director of the Company
Putian
also served as director of
Datang Purchase Telecommunication Banking
such Market price 25.83 25.83 0.02% Immaterial
Information goods products transfer
company(shareholding
Electronics
company of the Company)
Co., Ltd.
Nanjing
Putian Subsidiary of controlling Purchase Telecommunication Banking
Market price 71.97 71.97 0.06% Immaterial
Hongyan shareholder goods products transfer
Electrical
28
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Appliance
Co., Ltd.
Nanjing Senior management of the
Puzhu Company also served as
Purchase Telecommunication Banking
Optical director of such Market price 3,721.33 3,721.33 3.2% Immaterial
goods products transfer
Network company(shareholding
Co., Ltd. company of the Company)
Wuhan
Fenghuo Subsidiary of controlling Purchase Telecommunication Banking
Market price 144.94 144.94 0.12% Immaterial
Putian IT shareholder goods products transfer
Co., Ltd.
The
decrease
of RMB
5,280,000
of lease
Subsidiary of controlling
expense
Putian shareholder;Director of the
recognized
High-tech Company also served as Lease of properties Banking
Lease Market price 528 528 100% for the
Industry director of such from related party transfer
period
Co., Ltd. company(shareholding
resulted in
company of the Company）
decrease
of RMB5,
280,000 in
total
profit.
Total -- -- 9,450.33 -- -- -- --
Details of return of sales in significant amount Non-applicable.
The related transactions of the Company were made based on the following reasons: (1)when providing integrated solution
scheme for customers with the related parties, the Company and such related parties purchased non-self matching
telecommunication products of the same brand based on customers’ requirements; (2)given that controlling shareholder
Necessity and continuity of related transaction, and reason for entering into owned strong advantages in certain aspects, the Company made use of controlling shareholder’s platform to participate in
related transaction with related parties (other than other participants in the some purchase projects of large customers, forming related transaction upon settlement; (3)it occurred purchase and sale of
market) products between the Company and its shareholding enterprises attributable to the Company’s internal industry planning
and positioning; (4)the Company leased properties from related party for office purposes. The Company made related
transactions for consideration of normal needs for production and operation, since through which, resources and advantage
of related parties can be fully made use of, need for production and operation can be met, unnecessary costs can be reduced,
29
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
which in turn benefited resources allocation of the Company, improved its operation efficiency and increased sales income
and profit.
Affect of related transaction on independence of listed company The Company was able to operate independently, and the aforesaid related transaction would not affect its independence.
The amount of related transactions took relatively small proportion of the Company’s operating income or costs,
Dependence of the Company on related party and relevant measures (if any)
representing no material dependence on related parties.
The Company made projection on the normal related transactions for the entire year of 2012, projecting that the total
amount of normal related transactions for the entire year would not exceed RMB381.20 million(including total related sales
Report the actual implementation of the normal related transactions which of RMB216 million, total related purchase of RMB151 million and rental and property management fee of RMB14.20
were projected about their total amount by types during the reporting period million paid to related parties). As of June 2012, the actual normal related transaction in aggregate amounted to
RMB94,503,300, including related sales of RMB49,557,100, related purchase of RMB39,666,200 and recognized related
rental of RMB5,280,000.
Subject to approving procedures of the Board and general meeting of the Company, the related transactions were priced by
Explanation for related transaction
reference to market price fairly, without harm to interests of the Company and non-related shareholders.
Related transaction with routine operation concerned
Products sold and services provided to related party Products purchased and services received from related party
Related party Proportion to amount of transactions Proportion to amount of transactions
Transaction amount(RMB’0000) Transaction amount(RMB’0000)
of the same type (%) of the same type (%)
China Potevio Co., Ltd 4,939.45 3.69% 2.55 0%
Putian IT Research Institute Co., Ltd. 15.81 0.01%
Nanjing Putian Hongyan Electrical Appliance
0.45 0% 71.97 0.06%
Co., Ltd.
Nanjing Putian Datang Information
25.83 0.02%
Electronics Co., Ltd.
Nanjing Puzhu Optical Network Co., Ltd. 3,721.33 3.2%
Wuhan Fenghuo Putian Information
144.94 0.12%
Technology Co., Ltd.
Total 4,955.71 3.70% 3,966.62 3.4%
Including: the amount of related transactions concerning the Company selling products or providing services to controlling shareholder and its subsidiaries during the reporting period was RMB49,
30
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
557,100.
2. Related transaction incurred by purchase or sales of assets
□Applicable √Non-applicable
3. Significant related transaction from jointly investment outside
□Applicable √Non-applicable
4. Current related liabilities and debts
√Applicable □Non-applicable
Whether has non-operation related credit and debt connected or not
√ Yes □ No
Funds provided to related party(RMB’0000) Funds provided to listed company by related party(RMB’0000)
Related party Related relationship Balance as at Balance as at Interest Interest Balance as at Balance as at Interest Interest
Occurrence repayment Occurrence repayment
period-begin period-end income expense period-begin period-end income expense
Non-operational
Director of the
Nanjing Putian
Company also
Datang
served as director of
Information 4.78 0 0 4.78 0 0
such company(40%
Electronics Co.,
was held by the
Ltd.
Company)
Subtotal 4.78 0 0 4.78 0 0
Operational
China Potevio Controlling
3,106.15 6,122.15 5,480.65 3,747.65 0 1,425.75 113.89 1,311.86 0 0
Co., Ltd shareholder
Subsidiary of
Chengdu Putian
controlling 20.85 20.85
Cable Co., Ltd.
shareholder
Putian IT
Subsidiary of
Research
controlling 18.5 18.5
Institute Co.,
shareholder
Ltd.
Shanghai Putian Subsidiary of
Youtong controlling 1,355.4 1,350.03 1,371.27 1,334.16
Technology shareholder
31
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Co., Ltd.
Director of the
Nanjing Putian
Company also
Datang
served as director of
Information 0.86 0.86 2.58 31.24 26.2 7.62 0 0
such company(40%
Electronics Co.,
was held by the
Ltd.
Company)
Subsidiary of
controlling
shareholder ;Director
Putian High-tech of the Company also
Industry Co., served as director of 112.95 413.02 500.63 25.34 0 0
Ltd. such
company(49.64%
was held by the
Company)
Nanjing Putian
Hongyan Subsidiary of
Electrical controlling 65.79 35.4 12.01 89.18 0 0
Appliance Co., shareholder
Ltd.
Wuhan Fenghuo
Putian Subsidiary of
Information controlling 0 461.27 291.7 169.58 0 0
Technology Co., shareholder
Ltd.
Senior management
of the Company also
Nanjing Puzhu
served as director of
Optical Network 2.72 614.89 616.17 1.44 0 12,622.37 8,554.13 4,068.24 0 0
such company(50%
Co., Ltd.
was held by the
Company)
Controlling
China Putian shareholder of
0 2.29 0 2.29 0 0
Corporation controlling
shareholder
Subtotal 4,485.98 8,105.57 7,468.09 5,123.46 0 0 181.32 14,991.34 9,498.56 5,674.11 0 0
32
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Total 4,485.98 8,105.57 7,468.09 5,123.46 0 0 186.1 14,991.34 9,498.56 5,678.89 0 0
Occurrence of funds provided by the
Company to controlling shareholders
7,490.68
and its subsidiaries during the
reporting period (RMB’0000)
Including: occurrence of
non-operational 0
transactions(RMB’0000)
Balance of funds provided by the
Company to controlling shareholders 5,121.16
and its subsidiaries (RMB’0000)
Including: non-operational
0
balance(RMB’0000)
Reason for operational credit and debt: represented account receivables and payables arising from time difference of settlement and payment when the Company
purchased or sold products with related parties. Reason for non-operational credit and debt: represented outstanding advance freight owed by subsidiaries to
Reason for related credit and debt
related parties.
Settlement of related credit and debt Settlement of credit and debt according to terms of contracts upon termination of such contracts.
Undertaking related to related credit
Nil
and debt
Affects of related credit and debt on
operational results and financial No material affects on operation results and financial position of the reporting period.
position of the Company
Fund occupation and progress of paying off
□Applicable √Non-applicable
Till end of reporting period, accountability plan proposed by the Board for completed no non-operational fund occupation from listed company
□Applicable √Non-applicable
33
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
5. Other significant related transaction
As of the end of the reporting period, Nanjing Putian Telecommunication Science & Technology Industry Park
Co., Ltd. (currently renamed as Putian High-tech Industry Co., Ltd.)was pledged to controlling shareholder China
Potevio Co., Ltd, as the counter guarantee provided by China Potevio Co., Ltd for the guarantee provided by the
Company for bank loans of RMB84 million(details were set out in the announcement relating to counter guarantee
provided for controlling shareholder of the Company dated 25 August 2010).
(X) Significant contracts and its implementation
1. Profits earned from trusteeship, contract and lease reached over 10% (10% included) of
total profit in this period
(1) Trusteeship
□Applicable √Non-applicable
(2) Contract
□Applicable √Non-applicable
(3) Lease
√Applicable □Non-applicable
Amount Reference
Affect of
involved for Belong to
Commenc Terminatio Lease lease Related
Name of Name of Assets by assets determinat related
e date of n date of income(R income on relationshi
leaser leasee leased leased ion of transaction
lease term lease term MB’0000) the p
(RMB’000 lease or not
Company
0) income
Subsidiary
of
controlling
shareholder
;Director of
Putian Nanjing the
Science & Putian Company
Property 31
Technolog Telecom 1 January also served
ownershi 14,692.7 December - - - Yes
y Industry municatio 2012 as director
p, land 2012
Park Co., n Co., of such
Ltd. Ltd. company(th
e
shareholdin
g company
of the
Company）
Explanation on leasing
The Company leased land and properties from Putian Science & Technology Industry Park Co., Ltd. for production and office
purposes. The leasing expenses recognized for the period was RMB5.28 million.
2. Guarantees
√Applicable □Non-applicable
34
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Unit: RMB00’000
Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
Guarante
Actual date of
Complete e for
Related happening
Name of the Guarantee Actual Guarantee Guarantee implemen related
Announcement (Date of
Company guaranteed limit guarantee limit type term tation or party
disclosure date signing
not (Yes or
agreement)
no)
Till end of
the loan
payment
guarantee by
China
Potevio
since
China Potevio September
2010-8-25 8,400 2010-09-19 8,400 Pledge No Yes
Company Limited 2010 (note: a
counter-guar
antee
provided by
the
Company for
China
Potevio )
Total actual occurred external
Total approving external guarantee in
0 guarantee in report period 0
report period (A1)
(A2)
Total actual balance of
Total approved external guarantee at
8,400 external guarantee at the end 8,400
the end of report period ( A3)
of report period (A4)
Guarantee of the Company for the subsidiaries
Guarante
Actual date of
Complete e for
Related happening
Name of the Guarantee Actual Guarantee Guarantee implemen related
Announcement (Date of
Company guaranteed limit guarantee limit type term tation or party
disclosure date signing
not (Yes or
agreement)
no)
Nanjing South
2011.12.14-2
Telecommunication 2011-4-16 4,000 2011-12-14 2,000 guarantee No No
012.12.13
Co., Ltd.
Nanjing Putian
2011.9.16-20
Tianji Building 2011-4-16 3,300 2011-09-13 1,000 guarantee No No
12.9.16
Intelligence Co., Ltd.
Nanjing Putian
2011.9.28-20
Tianji Building 2011-4-16 3,300 2011-09-22 1,000 guarantee No No
12.9.28
Intelligence Co., Ltd.
Total amount of actual
Total amount of approving guarantee occurred guarantee for
8,000 0
for subsidiaries in report period (B1) subsidiaries in report period
(B2)
Total balance of actual
Total amount of approved guarantee
guarantee for subsidiaries at
for subsidiaries at the end of reporting 8,000 4,000
the end of reporting period
period (B3)
(B4)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
Total amount of approving guarantee Total amount of actual
8,000 0
in report period (A1+B1) occurred guarantee in report
35
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
period (A2+B2)
Total balance of actual
Total amount of approved guarantee
16,400 guarantee at the end of report 12,400
at the end of report period (A3+B3)
period (A4+B4)
The proportion of the total amount of actually guarantee in the net
32.79%
assets of the Company(that is A4+ B4)
Including:
Amount of guarantee for shareholders, actual controller and its
8,400
related parties(C)
The debts guarantee amount provided for the guaranteed parties
2,000
whose assets-liability ratio exceed 70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(E)
Total amount of the aforesaid three guarantees(C+D+E) 10,400
Explanations on possibly bearing joint and several liquidating No possibly bearing joint and several liquidating responsibilities
responsibilities for undue guarantees for undue guarantees in reporting period
No external guarantee against regulated procedures occurred in
Explanations on external guarantee against regulated procedures
reporting period
36
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
3. Trust financing
□Applicable √Non-applicable
4. Implementation of material contracts entered into during the normal operation
No routine operation material contract that need to disclose in this report period or in previous period and last till the reporting
period
5. Other significant contract
□Applicable √Non-applicable
(XI) Explanation on corporate bonds offering
□Applicable √Non-applicable
(XII) Implementation of commitments
1. Commitments made by the Company or shareholders holding above 5% shares of the
Company in reporting period or extending to reporting period.
□Applicable √Non-applicable
2. Explanation on assets or projects that reached the original profit forecast as well as its
reasons while the reporting period still in forecast period, and there are profit forecast on
assets or projects of the Company
□Applicable √Non-applicable
(XIII) Items of other consolidated income
Unit: RMB
Items This period Last period
1. Gains(losses) from financial assets available for sales
Less: Income tax influences from financial assets available
for sales
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current
period
Subtotal
2. Shares in the other consolidated income of the investee
calculated based on equity method
Less: Income tax influences of shares in the other
consolidated income of the investee calculated based on
equity method
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current
period
Subtotal
3. Gains(losses) from cash flow hedge instrument
Less: Income tax influences from cash flow hedge
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current
period
Adjusted amount transferred to initial confirmed amount of
the arbitraged items
Subtotal
4. Differences from translating foreign currency financial
-93,168.18 282,079.96
statements
Less: Net amount of disposing overseas business transferred
to current gains/losses
37
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Subtotal -93,168.18 282,079.96
5. Others
Less: Income tax influences by others reckoned into other
consolidated income
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current
period
Subtotal
Total -93,168.18 282,079.96
(XIV)Registration form of receiving research, communication and interview in the report
period
Content discussed and
Date Place Way Type Object
documents provided
N/A
(XV) Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
Whether re-engaged CPA or not
□Yes √No □Non-applicable
(XVI) Punishment and rectification for listed company and its directors, supervisor, senior
executives, shareholders of the Company, actual controller and purchasers
□Applicable √Non-applicable
(XVII) Explanation on other significant events
□Applicable √Non-applicable
(XVIII) Major changes of profitability of turn debt guarantor, assets status and credit
standings
(Only applies to listed company with corporate convertible bonds offered)
□Applicable √Non-applicable
(XIX) Index for information disclosure
Matter Newspaper and version Publish date Internet website and search
Profit forecast announcement D28 of the Securities Times and A19of
18 January 2012 www.cninfo.com.cn
for 2011 Hong Kong Commercial Daily
Announcement relating to
D52 of the Securities Times and A24
resolution of the 22nd meeting 20 March 2012 www.cninfo.com.cn
th
of Hong Kong Commercial Daily
of the 5 Board
Announcement relating to
D52 of the Securities Times and A24
resolution of the 14thmeeting of 20 March 2012 www.cninfo.com.cn
th
of Hong Kong Commercial Daily
the 5 supervisory committee
Summary of annual report of D52 of the Securities Times and A24
20 March 2012 www.cninfo.com.cn
2011 of Hong Kong Commercial Daily
Announcement relating to
D52 of the Securities Times and A24
projected related transaction 20 March 2012 www.cninfo.com.cn
of Hong Kong Commercial Daily
for 2012
Announcement relating to
D52 of the Securities Times and A24
provision of guarantee for 20 March 2012 www.cninfo.com.cn
of Hong Kong Commercial Daily
controlling subsidiary
38
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Announcement relating to
D52 of the Securities Times and A24
provision of guarantee for 20 March 2012 www.cninfo.com.cn
of Hong Kong Commercial Daily
associated enterprise
Announcement relating to
B29 of the Securities Times and A17
resolution of the 23rd meeting 31 March 2012 www.cninfo.com.cn
th
of Hong Kong Commercial Daily
of the 5 Board
Announcement relating to
D128 of the Securities Times and A12
resolution of the 24th meeting 26 April 2012 www.cninfo.com.cn
of Hong Kong Commercial Daily
of the 5th Board
Announcement relating to
D128 of the Securities Times and A12
resolution of the 15thmeeting of 26 April 2012 www.cninfo.com.cn
th
of Hong Kong Commercial Daily
the 5 supervisory committee
The 1st quarterly report for D128 of the Securities Times and A12
26 April 2012 www.cninfo.com.cn
2012 of Hong Kong Commercial Daily
Notice of holding the 2011 D128 of the Securities Times and A12
26 April 2012 www.cninfo.com.cn
annual general meeting of Hong Kong Commercial Daily
Declaration of nominators and
D128 of the Securities Times and A12
candidates of independent 26 April 2012 www.cninfo.com.cn
of Hong Kong Commercial Daily
directors
Announcement relating to
D17 of the Securities Times and A11
resolution of 2011 annual 18 May 2012 www.cninfo.com.cn
of Hong Kong Commercial Daily
general meeting
Announcement relating to
D17 of the Securities Times and A11
resolution of the 1st meeting of 18 May 2012 www.cninfo.com.cn
th
of Hong Kong Commercial Daily
the 6 Board
Announcement relating to
D17 of the Securities Times and A11
resolution of the 1stmeeting of 18 May 2012 www.cninfo.com.cn
of Hong Kong Commercial Daily
the 6th supervisory committee
Announcement relating to
D25 of the Securities Times and A21
resolution of the 2nd meeting of 26 June 2012 www.cninfo.com.cn
th
of Hong Kong Commercial Daily
the 6 Board
Announcement relating to
D25 of the Securities Times and A21
transfer of equities in 26 June 2012 www.cninfo.com.cn
of Hong Kong Commercial Daily
shareholding company
Notice of holding the 1st
D25 of the Securities Times and A21
extraordinary general meeting 26 June 2012 www.cninfo.com.cn
of Hong Kong Commercial Daily
for 2012
Announcement relating to
resolution of the 1st D29 of the Securities Times and A23
13 July 2012 www.cninfo.com.cn
extraordinary general meeting of Hong Kong Commercial Daily
for 2012
Announcement relating to
D20 of the Securities Times and A8 of
resolution of the 3rd meeting of 9 August 2012 www.cninfo.com.cn
Hong Kong Commercial Daily
the 6th Board
Notice of holding the 2nd D20 of the Securities Times and A8 of 9 August 2012 www.cninfo.com.cn
39
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
extraordinary general meeting Hong Kong Commercial Daily
for 2012
VIII. Financial Report
(I) Auditing Report
Whether the report has been audited or not
□ Yes √ No □Non-applicable
(II) Financial Statement
Whether consolidated statement or not:
√ Yes □ No □Non-applicable
Unless otherwise, currency for this statement refers to RMB (Yuan)
Currency used in note of financial statement is RMB (Yuan)
1、The Consolidated Statement Of Financial Position As At 30 June 2012
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Items Note 30 June 2012 31 December 2011
Current assets
Monetary funds 331,632,757.53 312,420,215.59
Settlement provisions
Capital lent
Held for trading financial assets
Notes receivable 7,061,951.89 12,863,723.59
Accounts receivable 899,136,010.05 736,141,568.31
Advances to suppliers 45,888,536.08 37,630,280.44
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 46,628,479.19 55,323,271.93
Purchase restituted finance asset
Inventories 595,638,108.81 552,349,491.53
40
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Long-term debt investment due within a year
Other current assets
Total current assets 1,925,985,843.55 1,706,728,551.39
Non-current assets
Granted loans and advances
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 208,078,185.44 206,616,139.78
Investment property 4,710,963.99 4,814,179.95
Fixed assets 99,238,215.96 102,151,733.16
Construction in progress 13,981,775.21 10,062,821.54
Construction materials
Fixed assets held for disposal
Productive biological assets
Petrol assets
Intangible assets 19,905,301.64 20,382,561.36
Development costs
Goodwill
Long-term prepayments
Deferred tax assets
Other non-current assets
Total non-current assets 345,914,442.24 344,027,435.79
Total assets 2,271,900,285.79 2,050,755,987.18
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
1、The Consolidated Statement Of Financial Position As At 30 June 2012 (continued)
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Items Note 30 June 2012 31 December 2011
Current liabilities
Short-term loans 581,300,000.00 511,500,000.00
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Tradable financial liabilities 0.00 0.00
41
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Notes payable 30,282,254.11 262,091.29
Accounts payable 1,064,521,817.87 906,751,164.90
Advances from customers 72,626,301.93 87,763,330.36
Selling financial asset of repurchase
Commission charge and commission payable
Accrued payroll 15,756,572.62 14,914,260.59
Taxes payable -1,405,933.10 15,773,935.97
Interest payable
Dividend payable 1,000,000.00 1,344,198.22
Other payables 41,988,533.76 53,443,334.25
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Long-term liabilities due within a year
Other current liabilities
Total current liabilities 1,806,069,547.19 1,591,752,315.58
Non-current liabilities
Long-term borrowings
Bonds payable
Long-term payables 80,118.00 80,118.00
Special payables
Estimated liabilities
Deferred tax liabilities
Other long-term liabilities
Total non-current liabilities 80,118.00 80,118.00
Total liabilities 1,806,149,665.19 1,591,832,433.58
Owner’s equity
Share capital 215,000,000.00 215,000,000.00
Capital reserve 185,374,533.85 185,374,533.85
Less: Treasury stock
Reasonable reserve
Surplus reserve 589,559.77 589,559.77
Provision of general risk
Undistributed profit -18,884,815.56 -24,923,018.93
Balance difference of foreign currency translation -3,860,914.39 -3,767,746.21
42
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Total shareholder’s equity attributable to parent
378,218,363.67 372,273,328.48
Company
Minority interests 87,532,256.93 86,650,225.12
Total shareholder’s equity 465,750,620.60 458,923,553.60
Total liabilities and shareholder’s equity 2,271,900,285.79 2,050,755,987.18
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
2、The Statement Of Financial Position For Parent Company As At 30 June 2012
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Items Note 30 June 2012 31 December 2011
Current assets
Monetary funds 233,938,223.14 195,625,750.23
Tradable financial assets
Notes receivable 793,560.00 3,938,705.00
Accounts receivable 595,320,065.99 489,450,457.03
Advances to suppliers 34,468,299.23 27,748,693.01
Interest receivable
Dividend receivable
Other receivables 96,619,752.41 87,821,794.78
Inventories 305,371,669.40 283,735,577.58
Long-term debt investment due within a year
Other current assets
Total current assets 1,266,511,570.17 1,088,320,977.63
Non-current assets
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 373,436,268.79 371,987,745.40
Investment property
Fixed assets 33,100,020.40 32,993,773.68
Construction in progress 751,823.54 743,162.49
Construction materials
Fixed assets held for disposal
Productive biological assets
43
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Petrol assets
Intangible assets 4,896,344.54 5,344,581.09
Development costs
Goodwill
Long-term prepayments
Deferred tax assets
Other non-current assets
Total non-current assets 412,184,457.27 411,069,262.66
Total assets 1,678,696,027.44 1,499,390,240.29
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
2、The Statement Of Financial Position For Parent Company As At 30 June 2012 (continued)
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Items Note 30 June 2012 31 December 2011
Current liabilities
Short-term loans 319,000,000.00 335,000,000.00
Tradable financial liabilities
Notes payable 180,990,209.75 80,262,091.29
Accounts payable 619,796,599.95 529,289,003.74
Advances from customers 30,029,833.41 27,009,137.51
Accrued payroll 5,901,080.54 5,715,497.61
Taxes payable 6,411,073.73 10,002,772.65
Interest payable
Dividend payable
Other payables 216,439,505.29 207,378,257.20
Long-term liabilities due within a year
Other current liabilities
Total current liabilities 1,378,568,302.67 1,194,656,760.00
Non-current liabilities
Long-term borrowings
Bonds payable
Long-term payables 80,118.00 80,118.00
Special payables
Estimated liabilities
Deferred tax liabilities
44
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Other long-term liabilities
Total non-current liabilities 80,118.00 80,118.00
Total liabilities 1,378,648,420.67 1,194,736,878.00
Owner’s equity
Share capital 215,000,000.00 215,000,000.00
Capital reserve 172,417,299.81 172,417,299.81
Less: Treasury stock
Special reserves
Surplus reserve 589,559.76 589,559.76
Provision of general risk
Undistributed profit -87,959,252.80 -83,353,497.28
Currency translation differences
Total shareholder’s equity 300,047,606.77 304,653,362.29
Total liabilities and shareholder’s equity 1,678,696,027.44 1,499,390,240.29
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
3、Consolidated Income Statement for the period ended 30 June 2012
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Items Note Jan. to Jun. 2012 Jan. to Jun. 2011
I. Total operating income 1,349,963,182.82 1,167,066,717.47
Including: Operating income 1,349,963,182.82 1,167,066,717.47
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 1,337,881,996.51 1,153,688,107.17
Including: Operating cost 1,167,040,803.45 1,016,732,478.71
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
45
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Reinsurance expense
Sales tax and surcharge 4,285,765.91 3,519,561.95
Sales expenses 85,918,634.36 67,934,941.52
Administration expenses 61,694,140.49 51,471,437.38
Financial expenses 16,942,792.36 12,030,031.87
Losses of devaluation of asset 1,999,859.94 1,999,655.74
Add: Changing income of fair value(Loss is listed
with“-”)
Investment income (Loss is listed with “-”) 1,462,045.66 2,853,983.65
Including: Investment income on affiliated
1,462,045.66 2,770,283.65
Company and joint venture and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) 13,543,231.97 16,232,593.95
Add: Non-operating income 1,206,456.92 1,338,341.42
Less: Non-operating expense 383,261.27 57,372.34
Including: Disposal loss of non-current asset 42,279.87
IV. Total Profit (Loss is listed with “-”) 14,366,427.62 17,513,563.03
Less: Income tax 2,022,892.44 2,763,884.93
V. Net profit (Net loss is listed with “-”) 12,343,535.18 14,749,678.10
Include: the net profit of the consolidated party
before consolidation
Net profit attributable to owner’s equity of parent
6,038,203.37 7,654,146.53
Company
Minority shareholders’ gains and losses 6,305,331.81 7,095,531.57
VI. Earnings per share -- --
i. Basic earnings per share 0.028 0.036
ii. Diluted earnings per share 0.028 0.036
VII. Other comprehensive income -93,168.18 282,079.96
VIII. Total comprehensive income 12,250,367.00 15,031,758.06
Total comprehensive income attributable to owners
5,945,035.19 7,936,226.49
of the parent company the parent company
Total comprehensive income attributable to
6,305,331.81 7,095,531.57
minority interests
Business combination under common control in the period, the net profit of the consolidated party before consolidation: 0 Yuan.
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
46
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
4、Income Statement of Parent Company for the period ended 30 June 2012
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Items Note Jan. to Jun. 2012 Jan. to Jun. 2011
I. Sales Income 894,036,249.73 742,733,409.56
Less: Business costs 818,400,146.13 679,207,670.70
Sales tax and surcharges 1,452,402.91 822,008.18
Sales expenses 45,496,592.28 39,477,459.42
Administration expenses 24,016,497.89 22,348,797.17
Financial expenses 14,174,636.35 10,082,794.27
Losses of devaluation of asset 1,008,607.19 1,546,601.86
Add: Changing income of fair value(Loss is
listed with “-”)
Investment income (Loss is listed with “-”) 6,025,223.39 7,074,596.35
Including: Investment income on affiliated
1,448,523.39 2,414,196.35
Company and joint venture
II. Operating profit (Loss is listed with “-”) -4,487,409.63 -3,677,325.69
Add: Non-operating income 172,583.98 70,918.94
Less: Non-operating expense 290,929.87 22,492.08
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) -4,605,755.52 -3,628,898.83
Less: Income tax
IV. Net profit (Net loss is listed with “-”) -4,605,755.52 -3,628,898.83
V. Earnings per share -- --
i. Basic earnings per share -0.021 -0.017
ii. Diluted earnings per share -0.021 -0.017
VI. Other comprehensive income
VII. Total comprehensive income -4,605,755.52 -3,628,898.83
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
5、Consolidated Cash Flow Statement for the period ended 30 June 2012
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Items Jan. to Jun. 2012 Jan. to Jun. 2011
47
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
I. Cash flows arising from operating activities:
Cash received from the sale of goods or rendering of
1,409,020,267.18 1,095,959,459.48
services
Net increase of customer deposit and interbank
deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial
institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Insured savings and net increase of investment
Net increase of disposal of transaction financial
asset
Cash received from interest, commission charge and
commission
Net increase of capital borrowed
Net increase of returned business capital
Refunds of taxes 779,939.18 735,842.73
Other cash receipts relating to operating activities 69,462,678.66 13,306,037.16
Sub-total of cash inflows arising from operating
1,479,262,885.02 1,110,001,339.37
activities
Cash paid for goods and services 1,288,194,199.25 1,040,803,984.34
Net increase of customer loans and advances
Net increase of deposits in central bank and
interbank
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 92,044,035.37 65,696,655.44
Payments of all types of taxes 53,868,053.64 47,189,266.63
Other cash payments relating to operating activities 73,366,161.31 79,768,515.69
Subtotal of cash outflow arising from operating activities 1,507,472,449.57 1,233,458,422.10
Net cash flows arising from operating activities -28,209,564.55 -123,457,082.73
II. Cash flows arising from investing activities
48
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Cash received from recovering investment
Cash received from investment income 83,700.00
Net cash received from the sale of fixed assets,
intangible assets and other long-term assets long-term 2,006,618.45
assets
Net cash received from disposal of subsidiaries and
other units
Other cash received concerning investing activities 0.00
Subtotal of cash inflow from investing activities 2,006,618.45 83,700.00
Cash paid for purchasing fixed, intangible and other
8,629,668.88 6,428,482.30
long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities 0.00
Subtotal of cash outflow from investing activities 8,629,668.878 6,428,482.30
Net cash flows arising from investing activities -6,623,050.43 -6,344,782.30
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing
minority shareholders’ investment by subsidiaries
Cash received from loans 100,000,000.00 271,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities 80,000,000.00
Subtotal of cash inflow from financing activities 180,000,000.00 271,000,000.00
Cash paid for settling debts 130,200,000.00 203,000,000.00
Cash paid for dividend and profit distributing or
23,801,804.46 18,312,544.53
interest paying
Including: Dividend and profit of minority shareholder
5,423,300.00
paid by subsidiaries
Other cash paid concerning financing activities 0.00 1,000,000.00
Subtotal of cash outflow from financing activities 154,001,804.46 222,312,544.53
Net cash flows arising from financing activities 25,998,195.54 48,687,455.47
IV. Influence on cash due to fluctuation in exchange
13,427.08 95,634.97
rate
V. Net increase of cash and cash equivalents -8,820,992.36 -81,018,774.59
49
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Add: Balance of cash and cash equivalents at the
310,453,749.89 291,447,011.87
period -begin
VI. Balance of cash and cash equivalents at the period
301,632,757.53 210,428,237.28
-end
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
6、Cash Flow Statement of Parent Company for the period ended 30 June 2012
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Items Jan. to Jun. 2012 Jan. to Jun. 2011
I. Cash flows arising from operating activities:
Cash received from the sale of goods or rendering of
878,806,774.63 718,196,416.62
services
Refunds of taxes
Other cash receipts relating to operating activities 55,487,231.32 36,979,615.17
Sub-total of cash inflows arising from operating
934,294,005.95 755,176,031.79
activities
Cash paid for goods and services 854,648,154.34 669,964,252.20
Cash paid to and on behalf of employees 44,259,446.77 38,030,926.23
Payments of all types of taxes 18,139,026.55 17,447,965.23
Other cash payments relating to operating activities 57,750,864.41 51,886,587.26
Subtotal of cash outflow arising from operating activities 974,797,492.07 777,329,730.92
Net cash flows arising from operating activities -40,503,486.12 -22,153,699.13
II. Cash flows arising from investing activities
Cash received from recovering investment
Cash received from investment income 4,576,700.00 4,660,400.00
Net cash received from the sale of fixed assets,
intangible assets and other long-term assets 371,150.00
long-term assets
Net cash received from disposal of subsidiaries and
other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 4,947,850.00 4,660,400.00
Cash paid for purchasing fixed, intangible and other 3,332,652.26 2,338,623.63
50
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
long-term assets
Cash paid for investment
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 3,332,652.26 2,338,623.63
Net cash flows arising from investing activities 1,615,197.74 2,321,776.37
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 64,000,000.00 201,000,000.00
Cash received from bonds issued
Other cash received concerning financing activities 80,000,000.00
Subtotal of cash inflow from financing activities 144,000,000.00 201,000,000.00
Cash paid for settling debts 80,000,000.00 186,000,000.00
Cash paid for dividend and profit distributing or
14,861,337.46 10,872,553.49
interest paying
Other cash paid concerning financing activities 1,000,000.00
Subtotal of cash outflow from financing activities 94,861,337.46 197,872,553.49
Net cash flows arising from financing activities 49,138,662.54 3,127,446.51
IV. Influence on cash due to fluctuation in exchange
-209,185.55 42,688.20
rate
V. Net increase of cash and cash equivalents 10,041,188.61 -16,661,788.05
Add: Balance of cash and cash equivalents at the
193,897,034.53 185,951,591.96
period -begin
VI. Balance of cash and cash equivalents at the period
203,938,223.14 169,289,803.91
-end
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
7、Consolidated Statement of Changes in Owners’ Equity for the period ended 30 June 2012
Amount for this period
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Amount for the period ended 30 June 2012
Items Shareholders’ equity attributable to the parent Company Minority Total
Share Capital Less: Reasonabl Surplus General Undistribut Others interests shareholders’
51
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
capital reserves Treasury e reserve reserves risk ed profit equity
Stock provision
215,000,0 185,374,5 589,559.7 -24,923,01 -3,767,746 86,650,225. 458,923,553.
I. Balance at the end of the last year
00.00 33.85 7 8.93 .21 12 60
Add: Changes of accounting policy
Error correction of the last period
Others
215,000,0 185,374,5 589,559.7 -24,923,01 -3,767,746 86,650,225. 458,923,553.
II. Balance at the beginning of this year
00.00 33.85 7 8.93 .21 12 60
III. Increase/ Decrease in this year 6,038,203.
-93,168.18 882,031.81 6,827,067.00
(Decrease is listed with “-”) 37
6,038,203. 6,305,331.8 12,343,535.1
(I) Net profit
37 1 8
(II) Other comprehensive income -93,168.18 -93,168.18
6,038,203. 6,305,331.8 12,250,367.0
Subtotal of (I) and (II) -93,168.18
37 1 0
(III) Shareholders’ contributions and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduction in capital
1. Capital contribution from owners
2. Share-based payment recognized
in shareholders' equity
3. Others
-5,423,300.0
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -5,423,300.00
0
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
provisions
-5,423,300.0
3. Distribution for shareholders -5,423,300.00
0
4. Others
(V)Transfer within shareholders'
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
1. Capitalization of capital reserve
2. Capitalization of surplus reserve
3. Remedying loss with surplus
reserve
52
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
4. Others
(VI) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(Ⅶ) others
IV. Balance at the end of the report 215,000,0 185,374,5 589,559.7 -18,884,81 -3,860,914 87,532,256. 465,750,620.
year 00.00 33.85 7 5.56 .39 93 60
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
7、Consolidated Statement of Changes in Owners’ Equity for the period ended 30 June 2012 (continued)
Amount for last period
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Amount for the period ended 30 June 2011
Shareholders’ equity attributable to the parent Company
Total
Items Less: General Minority
Share Capital Reasonabl Surplus Undistribut shareholders’
Treasury risk Others interests
capital reserves e reserve reserves ed profit equity
Stock provision
215,000,0 185,374,5 589,559.7 -35,747,15 -4,599,976 60,497,146. 421,114,111.0
I. Balance at the end of the last year
00.00 33.85 7 2.65 .23 26 0
Add: Retroactive adjustment under
the same control
Add: Changes of accounting policy
Error correction of the last period
Others
215,000,0 185,374,5 589,559.7 -35,747,15 -4,599,976 60,497,146. 421,114,111.0
II. Balance at the beginning of this year
00.00 33.85 7 2.65 .23 26 0
III. Increase/ Decrease in this year 10,824,13 832,230.0 26,153,078. 37,809,442.6
(Decrease is listed with “-”) 3.72 2 86 0
10,824,13 12,547,174. 23,371,308.4
(I) Net profit
3.72 73 5
832,230.0
(II) Other comprehensive income 832,230.02
2
Subtotal of (I) and (II) 10,824,13 832,230.0 12,547,174. 24,203,538.4
53
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
3.72 2 73 7
(III) Shareholders’ contributions and 21,910,463. 21,910,463.7
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduction in capital 79 9
1. Capital contribution from owners
2. Share-based payment recognized
in shareholders' equity
21,910,463. 21,910,463.7
3. Others
79 9
-8,304,559.6
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -8,304,559.66
6
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
provisions
-8,304,559.6
3. Distribution for shareholders -8,304,559.66
6
4. Others
(V)Transfer within shareholders'
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
1. Capitalization of capital reserve
2. Capitalization of surplus reserve
3. Remedying loss with surplus
reserve
4. Others
(VI) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(Ⅶ)others
IV. Balance at the end of the report 215,000,0 185,374,5 589,559.7 -24,923,01 -3,767,746 86,650,225. 458,923,553.
year 00.00 33.85 7 8.93 .21 12 60
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
8、Statement of Changes in Owners’ Equity of Parent Company for the period ended 30 June 2012
Amount for this period
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
54
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Amount for the period ended 30 June 2012
Less: General Total
Items Capital Reasonable Surplus Undistributed
Share capital Treasury risk shareholders’
reserves reserve reserves profit
Stock provision equity
215,000,000. 172,417,299. -83,353,497.2 304,653,362.
I. Balance at the end of the last year 589,559.76
00 81 8 29
Add: Changes of accounting policy
Error correction of the last period
Others
215,000,000. 172,417,299. -83,353,497.2 304,653,362.
II. Balance at the beginning of this year 589,559.76
00 81 8 29
III. Increase/ Decrease in this year
-4,605,755.52 -4,605,755.52
(Decrease is listed with “-”)
(I) Net profit -4,605,755.52 -4,605,755.52
(II) Other comprehensive income
Subtotal of (I) and (II) -4,605,755.52 -4,605,755.52
(III) Shareholders’ contributions and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduction in capital
1. Capital contribution from owners
2. Share-based payment recognized in
shareholders' equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
provisions
3. Distribution for shareholders
4. Others
(V)Transfer within shareholders' equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Capitalization of capital reserve
2. Capitalization of surplus reserve
3. Remedying loss with surplus
reserve
4. Others
(VI) Reasonable reserve
1. Withdrawal in the report period
55
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
2. Usage in the report period
(Ⅶ)others
215,000,000. 172,417,299. -87,959,252.8 300,047,606.
IV. Balance at the end of the report year 589,559.76
00 81 0 77
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
8、Statement of Changes in Owners’ Equity of Parent Company for the period ended 30 June 2012 (continued)
Amount for last period
Prepared by: NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2012 Unit: RMB Yuan
Amount for the period ended 30 June 2011
Less: General Total
Items Capital Reasonable Surplus Undistributed
Share capital Treasury risk shareholders’
reserves reserve reserves profit
Stock provision equity
215,000,000. 172,417,299. -71,769,720.8 316,237,138.
I. Balance at the end of the last year 589,559.76
00 81 2 75
Add: Changes of accounting policy
Error correction of the last period
Others
215,000,000. 172,417,299. -71,769,720.8 316,237,138.
II. Balance at the beginning of this year 589,559.76
00 81 2 75
III. Increase/ Decrease in this year -11,583,776.4 -11,583,776.4
(Decrease is listed with “-”) 6 6
-11,583,776.4 -11,583,776.4
(I) Net profit
6 6
(II) Other comprehensive income
-11,583,776.4 -11,583,776.4
Subtotal of (I) and (II)
6 6
(III) Shareholders’ contributions and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduction in capital
1. Capital contribution from owners
2. Share-based payment recognized in
shareholders' equity
3. Others
56
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
provisions
3. Distribution for shareholders
4. Others
(V)Transfer within shareholders' equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Capitalization of capital reserve
2. Capitalization of surplus reserve
3. Remedying loss with surplus
reserve
4. Others
(VI) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(Ⅶ)others
215,000,000. 172,417,299. -83,353,497.2 304,653,362.
IV. Balance at the end of the report year 589,559.76
00 81 8 29
Legal Representative: Liang Sun Person in Charge of Accounting Works: Hong Wang Person in Charge of Accounting Department: Lian Shi
57
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Ⅲ Basic information of the Company
Nanjing Putian Telecommunications Co., Ltd. (in the following we refers to as ‘the company’) is the original Nanjing Telecommunication Facility
Factory. The company was established as joint stock limited company by raising money approved with TGS (1997) No. 28 issued by National
Economic Institutional Reform Commission on 21 March, 1997. The company was listed in Shenzhen Stock Exchange on 22 May, 1997. By 30
June 2012, the capital of the company is RMB 215,000,000.00 Yuan. The company is mainly engaged in telecom equipment manufacture
industry. The business scope of the company is data telecom product, wires telecom product, wireless telecom product, distribution and
allocation of layout of telecom product, research, manufacture of media computer and digital television, vehicle electronics. Research, sale of
video conference system, and providing the related after-sales service, including installation and maintenance and repairmen of equipments.
Also include: design of telecom information net project and computer information systematic project, provision of related system combination
and related consultancy service.
IV Principal accounting policies and accounting estimate and correction of previous errors
1. Basis for preparation of financial statement
The financial statements of the company are prepared on the hypothesis of going concern according to the actual occurred transactions and
events, according to the “Accounting Standards for Business Enterprises - Basic Standard” (issued by the Ministry of Finance in 15 February
2006 ), 38 specific accounting standards, the “Note to the ‘Accounting Standards for Business Enterprises - Practice Guide” , explanatory notes
and other relative regulations (hereinafter collectively referred to as “Accounting Standards for Business Enterprises”).and in accordance with
the accounting policy and estimation stated as follows.
2. Statement on Observation of Accounting Standard for Enterprise
The financial statement prepared by the company applies with the requirements of Accounting Standard for Enterprise, reflects the financial
position at 30 June 2012, operational achievements and cash flow of the company for the period ended 30 June 2012 effectively and
completely.
3. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
4. Functional currency for accounting
The functional currency of the company is Renminbi (thereafter refer as the “RMB”).
Functional currency of the overseas subsidiaries
The subsidiary Putian Telecommunications (Hong Kong) Co., Ltd. registered in Hong Kong, Hong Kong dollars as its functional currency, the
preparation of the financial statements are translated into RMB.
5. Accounting treatment of Business Combination
(1) Combination under common control
For a business combination under the same control, the combining party recognizes the assets and liabilities acquired, according to the
58
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
carrying value at acquisition-date. The excess of the carrying value of acquired net asset over the carrying value of consideration transferred
(or nominal value of shares issued) is charged to capital surplus. If capital reserve’s not enough, the balance is charged to retained earnings.
Transaction costs that are directly attributable to the acquisition are recorded as profit or loss in the current period.
(2) Combination under different control
The consideration transferred in a business combination under different control are measured at fair value, which shall be calculated as the
sum of the acquisition-date fair value of the assets transferred by the acquirer, the liabilities incurred and the equity interests issued by the
acquirer. For business combination achieved in stages, combined costs are the sum of each transaction cost. Combination under different
control, the acquirer occur audit, legal service, evaluation consultation etc intermediary fee and other related administrative expenses for
business combination, shall be recorded into the profits and losses; the consideration of the equity securities issued or debt securities
transaction costs, shall be included in the equity securities or debt amount of initial recognition of securities. Combined cost includes
consideration transferred and transaction costs that are directly attributable to the acquisition. Future events that may affect the cost of the
combination in the merger contract, if the estimated future is likely to occur and the amount can be reliably measured at purchase date, should
be included in the cost of the combination.
An acquirer of a business combination recognizes the identifiable assets acquired and liabilities and contingent liabilities assumed at their
acquisition-date fair value. The excess of combined cost over the fair value of the net identifiable assets acquired is measured as goodwill.
When the fair value of the net identifiable assets acquired exceeds combined cost, after reassessment the net identifiable assets acquired is
still more than combined cost the difference is recorded to profit or loss in the current period.
6. Basis of Preparation of Consolidated Financial Statements
(1) Preparation of consolidated financial statements
The company will include the subsidiaries had effective control and special purpose entities in the scope of consolidated financial statement.
Consolidated financial statements have been prepared in accordance with the “Accounting Standards for Business Enterprises No. 33 -
Consolidated Financial Statements and relevant supplementary regulations. All significant internal transactions and balances between the
Company and its subsidiaries are eliminated for the purpose of consolidation. The equity of subsidiaries not held by the parent company shall
be presented separately as minority shareholders’ equity in consolidated shareholders’ equity.
Any difference arising from the inconformity of accounting year or accounting policies between the subsidiaries and the Company shall be
adjusted in the consolidated financial statements.
When preparing the consolidated financial statements, if the Company acquired the subsidiary through business combination involving not
under common control, the separate financial statements shall be adjusted based on the fair value of identifiable net assets at the acquisition
date. If the subsidiary is acquired through business combination involving common control, the consolidated financial statements shall include
the carrying amount of assets, liabilities, operating result and cash flow of the subsidiary at the beginning of the current period, as if business
combination also had occurred the beginning of the current period.
(2) Equity of the same subsidiary buy to sell or sell to buy in the two consecutive fiscal year, should disclose the
accounting treatment
Not applicable.
7. Cash and cash equivalent
The cash reflected in the cash flow statement of the Company represents the inventory cash and the deposit available for payment at any time.
The cash equivalent in the cash flow statement refers to the kind of investment with short holding term and strong flow ability. At the same time,
the cash equivalent is easy to convert into cash with already-known amount and risk of value change is very small.
59
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
8. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
For foreign currency transaction, the Company converts the foreign currency amount into functional currency by using the spot exchange rate
at the trading day.
The balance sheet date, monetary items which expressed by foreign currency are converted into functional currency using the spot exchange
rate. Exchange differences arising from the recognition of the balance sheet date spot exchange rate and the initial or previous balance sheet
date, in addition to foreign currency borrowings eligible for capitalization of exchange differences to be capitalized to the cost of related assets
during the capitalization through profit or loss.
As for the foreign currency non-monetary items measured by historical cost, conversion is made with the spot exchange rate as of the business
day, with no change in RMB amount. With the fair value measurement of foreign currency non-monetary items at the fair value determined day
at the spot exchange rate, convert the amount of functional currency with the original amount of functional currency of the variance, as the
changes in the fair value (including exchange rate fluctuation) processing, included in the current profits and losses or confirmed for other
comprehensive income and included in the capital reserve.
(2) Conversion of foreign currency financial statement
As for the subsidiaries and joint ventures with different standard currency for accounting from the company, the Company account for
transaction and prepare consolidated financial statements after conversion of related foreign currency financial statements.
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign currency balance sheet; as for the
items in statement of owners’ equity except for “Undistributed profit”, conversion is made pursuant to the spot exchange rate of business day;
income and expense items in income statement then are also converted pursuant to the spot exchange rate of transaction day approximately,
which is systematic and reasonable method. Difference arising from the aforementioned conversions shall be listed separately in items of
owners’ equity.
Spot exchange rate as of the occurrence date of cash flow approximately is adopted for conversion of foreign currency cash flow, which is
systematic and reasonable method. The amount of cash affected by exchange rate movement shall be listed separately in cash flow statement.
When disposing operation abroad, related difference arising from foreign currency exchange is transferred to profit or loss in the current period,
transferred proportionately when partially disposed.
9. Financial Instruments
(1) Classification of financial instruments
The Company classifies financial instruments into the following two categories, namely financial assets or financial liabilities.
Financial assets at initial recognition are classified as: financial assets measured at fair value through profit or loss (including trading financial
assets and those financial assets designated at fair value through profit or loss of), held-to-maturity investment, loans and accounts receivables,
as well as financial assets available-for-sale. In addition to accounts receivable outside of the financial assets depends on the company’s and
its subsidiaries’ classification of the financial assets held intention and hold ability, etc.
Financial liabilities at initial recognition are classified as: financial liabilities at fair value through profit or loss (including trading financial
liabilities and financial liabilities designated at fair value through profit or loss) and other financial liabilities.
When the Company becomes one party of financial instrument contracts, it recognizes a related financial asset or financial liability.
(2) Recognition and measurement of financial instruments
The financial assets or financial liabilities initial recognition is measured at fair value. Follow-up measurement is classification treatment: with
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
the fair value measurement and the changes are included in the profits and losses of the financial assets, available for sale financial assets and
to the fair value measurement and the financial liability measured at fair value and changes included in the profits and losses; financial
guarantee contract and below the market rate loans loan commitment, in the initial confirmed according to the Accounting Standards for
Enterprises 13 - Contingencies determine the amount and the initial affirm amount deducted ,according to the Accounting Standards for
Enterprises 14-Revenue, the principles of determine income of the cumulative amortize frontal balance after the higher among a follow-up
measurement; held-to-maturity investment, loans and accounts receivable and other financial liabilities at the amortized cost measurement.
Fair value change of financial assets or financial liabilities in the follow-up measurements, except they are hedged against certain risk ,should
be accounted as follows:①Fair value change of financial assets or financial liabilities which are measured by fair value and whose fair value
change is recorded into prevailing gains and losses is recorded into gains and losses of fair value change; Interests or cash dividend acquired
from holding assets are recognized as investment income; when disposing such assets, the difference between their fair value and initial
accounting amount is recognized as investment gains and losses. Meanwhile, gains and losses of fair value shall be adjusted.②Fair value
change of financial assets available-for-sale is recorded into capital reserve; the interests calculated by effective interest rate method during the
holding period are written into investment income; cash dividend obtained from investment by equity instrument available-for-sale is written into
investment income at the time when the invested company declares to grant dividend; the difference between the payment received when
disposal of such assets and carrying value after deducting the accumulative fair value change which is originally and directly recorded into
capital reserve, is written into investment gains and losses.
(3) Recognition and measurement of transferring of financial assets
Where there is a transfer of financial assets, the Company should derecognize the entire financial asset if it has transferred nearly all of the
risks and rewards related to ownership of the financial asset to the transferee; or it is out of the control of the asset, although it has not yet
transferred the asset or it has not retained almost the risks and rewards relating to ownership of the financial asset.
When the transfer of financial assets qualify for de-recognition criteria, the Company should measure correspondingly, namely differences
between the book value of the transferred financial assets and the sum of consideration received by the transfer, and the accumulated changes
in fair value directly included in the capital reserve (when transferred financial assets involve available-for-sale financial assets) should be
included in profit and loss in the current period.
If the partial transfer of financial assets qualify for de-recognition criteria, the Company should measure correspondingly, namely the overall
book value of the transferred financial assets are divided according to the fair value of transferred and retained part, and the difference
between the book value of the derecognized part and the sum of the consideration of the derecognized part, and the amount of the
corresponding part of the accumulated changes in fair value directly included in the capital reserve (when the transfer involve available-for-sale
financial assets) is recorded to profit or loss in the current period.
(4) De-recognition of financial liabilities
Recognition of certain liability should be terminated when related current obligation has already been wholly or partly discharged.
(5) Recognition of fair value of financial assets and liabilities
For those financial instruments existing in active markets, market quotation in the active market is used to confirm their fair values. Fair value of
the financial instruments which have no active market is confirmed by adoption of estimation technology.
Estimation technology includes reference to the price applied by parties which know well situation and are willing to make deals in the latest
market business, reference to the current fair value of other financial assets which are the same in principle, reference to discounted cash flow
method and so on. When estimation technology is adopted, parameters of the market should be applied at the most, prior to the parameters of
the Company and its subsidiaries.
(6) The impairment provision of the financial assets (excluding accounts receivable)
Except for the financial assets which are measured by fair value and whose fair value change is recorded into prevailing gains and losses, the
Company will make check in the carrying value of other financial assets as at the balance sheet date. The impairment provision is recognized
where there is any objective evidence proving that such financial asset has been impaired.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
For single amount significant financial assets impairment test separately; individual amount not significant financial assets, impairment test
separately or included in the portfolio with similar credit risk characteristics of financial asset for impairment test. Separate impairment test did
not occur impair (both single amount significant and not significant financial assets); including in the portfolio with similar credit risk
characteristics of financial asset for impairment test again. Already single confirm the impairment loss of financial assets, no need to do
impairment test again.
The held-to-maturity investment, loans and accounts receivable become impaired, write down their book value to expected future cash flow,
write-down amount recognized as the impairment loss, included in the current profits and losses. Financial asset available for sale impaired
originally recorded in the capital reserve, because of the fair value of the cumulative losses shall drop formation transferred out and included in
the current profits and losses, transferred cumulative loss of the assets initial acquisition cost deducting already recovered principal and
amortization amount, the current fair value and the balance of impairment loss original already included in the profit and loss.
(7) Held-to-maturity investment that is not yet expired can be reclassified as available-for-sale financial assets,
indicating the basis of the holding intention or ability to change
Held-to-maturity investment that is not yet expired can be reclassified as available-for-sale financial assets,
When it meet the following situation:
①There is no financial resource to be utilized providing requisite funds continually to hold the financial assets to maturity.
②There is no intention of holding the financial assets to maturity for management.
③It is difficult to hold the financial assets to maturity due to the restriction of laws and regulations and other factors.
④Others showing that the Company has not the ability to hold the financial assets to maturity.
Significant parts of above must be approved by the board of directors before making a decision.
10. Accounts receivable
Accounts receivable include accounts receivable and long-term accounts receivable and other account receivable. On the balance sheet day,
there is any objective evidence proving that accounts receivable has been impaired, an impairment provision is made according to the
difference between the carrying amount of accounts receivable and the present value of the predicted future cash flow.
(1) Single amount dramatic and individual provision for the accounts receivable:
Recognition criteria Individual amount more than RMB10,000,000Yuan
Provision method Individual identification method
(2) Classification as the combination of provision for account receivable
Portfolio recognition criteria Provision method for Portfolio The basis for portfolio
Portfolio 1 Age analysis Single amount major but not separate accrual provision
Portfolio 2 Other methods Single amount not significant and portfolio risk is low
Portfolio 3 Age analysis Single amount not significant but risk is high in the group
Adopt age analysis provision in portfolio:
√ Applicable □Not applicable
Accounts receivable provision
Aging Other receivables provision proportion (%)
proportion (%)
Within 1 year (contain 1 year) 0.00% 0.00%
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Accounts receivable provision
Aging Other receivables provision proportion (%)
proportion (%)
1 to 2 years 0.00% 0.00%
2 to 3 years 10.00% 10.00%
3 to 4years 30.00% 30.00%
4 to 5 years 40.00% 40.00%
Over 5 years
5 to 6 years 80.00% 80.00%
6 years or above 100.00% 100.00%
Adopt balance percentage method for provision in portfolio:
□ Applicable √Not applicable
Adopt other methods for provision in portfolio:
√ Applicable □Not applicable
Portfolio Method Description
Portfolio 2 No provision for bad debts
(3) Single amount not significant but single provision for accounts receivable
Reason of single provision for bad debts: separately impairment test, exist objective evidence for impairment;
Provision for bad debts: individual identification method.
11. Inventories
(1) Classification of inventory
The company holds the assets for sale, which are finished goods in the ordinary course of the business, or in the process of production for
such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services. The inventories of
the Company comprises of raw materials, turn-over materials , consigned materials for processing ,packing materials, low-value consumable
items ,work in process, self-made semi-finished product, finished goods etc.
(2) Measurement of issued inventory
□First-in first-out method √weighted average method □Specific identification method □Other method
(3) Recognition and measurement for inventory impairment provision
On balance sheet date, the inventories are measured at lower of cost and net realizable value. It is provided according to the difference
between the cost of single inventory item and its net realizable value. But as for others with large quantity and low price, the reserve is provided
according to categories.
The determination of net realizable value of inventories based on: ① net realizable value of finished products is the estimated selling price
less estimated selling expenses and the relevant tax payments; ② as for materials hold for production, when net realizable value of finished
products derived from these materials is higher than the cost of those, measured at cost; When the material prices show that the net realizable
value of finished products produced by these materials is below cost, net realizable value will be the estimated sale price less estimated cost to
completion, estimated selling expenses and related tax expense. ③as for materials held for sale, net realizable value is the market price.
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(4) Inventory system
√Perpetual inventory system □Periodic inventory system □Other
(5) Amortization method for low value consumable items and packing materials
The low value consumable items are amortized by step-amortization method.
The packaging materials are amortized by applying immediate write-off method when consumed.
12. Long-term equity investment
(1) Initial measurement of long-term equity investment
① The long-term equity investment acquired through combination under common control are measured at the attributable share of carrying
amount of owners equity as its initial investment cost; The investments acquired through combination under different control are initially
recognized at combination cost.
② The long-term equity investment is acquired through cash payment, the actual payment for the purchase shall be deemed as initial
investment cost.
③ The long-term equity investment is acquired by issuing the equity securities, the fair values of issued equity securities will be deemed as
the initial investment cost.
④ The long-term equity investment made by the investors, the agreed price in investment contract or agreement will be deemed as the initial
investment cost.
⑤ Long-term equity investment which is acquired through debt reorganization and non-monetary assets exchange, regulations of relevant
accounting standards shall be referred to for confirming initial investment cost.
(2)Subsequent measurement of long-term equity investment and recognition of investment income
Cost method and equity method is adopted for long-term equity investment respectively. The long-term investment under the equity method
should be entitled to or shared by the investee's net share of profit or loss, recognize the long-term equity investment income and investment.
When declare distribution of profits or cash dividends should be allocated to the part, a corresponding reduction in the carrying value of
long-term equity investments.
The long-term equity investment under cost method, except for additional or return on investment, the carrying value is generally same. The
dividends or profits declared by the investee are recognized as the current investment income.
When the company has joint control or significant influence over the investee, adopting equity method, otherwise cost method will be applied.
(3) Recognition criteria for joint control and significant influence
The recognition criteria for joint control includes: decision relating to financial policies and operation policies of joint company needs identical
agreement by all the joining parties based on agreement in the contract between all the joining parties.
The recognition criteria for significant influence includes: when the company owns above 20% (including 20%) below 50% voting shares of
invested company. When the company owns below 20% (excluding 20%) voting shares of invested company, significant influence over
invested company should be recognized when it meets one of the following situations:
① Delegation of certain representative in the board of directors or similar situation of investee company.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
② Participate the decision-making of investee company
③ Delegation of certain management staff in the investee company.
④ Reliance to technology or technological materials of investee company.
⑤ others stating significant influence over investee company.
(4) Test of impairment and provision of impairment
On balance sheet date, the company carries out an inspection if there is any evidence that the long-term investment is impaired. When any
evidence stating long-term investment impaired occurs. The company should estimate its recoverable amount and carry out impairment test.
Impairment loss is measured at difference between carrying value and recoverable amount .The impairment loss will never be reversed in the
future once it is ascertained.
Recoverable amount is the higher amount of the net fair value for sale and the present value of estimated future cash flows. The net fair value
for sale is sell price agreed less related tax expenses, when existent fair trade agreement price. When there is no fair trade sales agreement
but there is an active market or transaction prices for similar assets with the industry, according to market price less the related tax.
13. Investment property
(1) Classification and measurement
The investment property of the company includes: leasing land use rights, rent buildings, land use rights which are hold and prepared for
transfer after appreciation of land use rights.
The company's investment property is initially measured at cost, with subsequent measurement at cost model.
(2) Accounting for cost model
The company investment property of rental building adopts straight-line method depreciation, specific depreciation policies the same as fixed
assets.
The company investment property of land use, hold appreciation land-use right for transfer using the straight-line method amortize. For land
use right for lease, the same amortization policies as those of the intangibles are adopted.
The balance sheet date, the company should review investment property whether there are impairment of signs, when there is any sign of
impairment should undertake impairment test confirmed recoverable amount, which is the lower of book value and the recoverable amount,
provision for impairment loss is no longer in the future accounting periods turn back.
14. Fixed assets
(1) Recognition
Fixed assets are tangible assets that have useful life more than one year, and are held for use in the production or supply of goods or services,
for rental to others or for administrative purposes. No fixed asset may be recognized unless it meets all the following conditions:
① The economic benefits related with the fixed asset are probably to flow to the enterprise;
② The cost of the fixed asset can be measured reliably
(2) Recognition and measurement of fixed assets under finance lease
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. Examples of situations that
individually or in combination would normally lead to a lease being classified as a finance lease are: ① The lease transfers ownership of the
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
asset to the lessee by the end of the lease term; ② The lessee has the option to purchase the asset at a price that is expected to be
sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that
the option will be exercised; ③ The lease term is for the major part of the economic life of the asset even if title is not transferred; ④ At the
inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased
asset; ⑤ The leased assets are of such a specialized nature that only the lessee can use them without major modifications.
The valuation of finance lease: the initial recognition of fixed assets financed by leasing at the lease period begins is the lower of the fair value
of the leased asset and the present value of minimum lease payments.
The depreciation policy for depreciable leased assets shall be consistent with that for depreciable assets that are owned, and the depreciation
recognized shall be calculated in accordance with fixed assets, as well as test of impairment.
(3) Classification and Depreciation
The company’s fixed assets are classified as buildings and structures, machinery equipment, transportation equipment and electronic and other
equipment. Depreciation method is the straight-line method. The depreciation rate is recognized in accordance with category, estimated useful
life and estimated residual rate of fixed assets，based on nature and utilization of each category. The company will review the useful life,
estimated residual value and deprecation method of the fixed assets at the year end, and make necessary adjustment once difference occurs
from estimated before. The company withdraws depreciation for all fixed assets except for those which have been fully depreciated while
continuing to use and the land which is accounted with separate pricing. The estimated residual value rate, useful life and annual depreciation
rate of each category of fixed assets are as follows:
Category of fixed assets Useful life (year) Residual value rate (%) Depreciation rate (%)
Building & structure 15-35 3 2.77-6.47
Machinery equipment 10-15 3 6.47-9.70
Electronic equipment 4-11 3 2.2-24.25
Transportation equipment 6-8 3 12.13-16.17
Other equipment 4-11 3 2.2-24.25
Finance leased fixed assets :
Including: Building & structure
Machinery equipment
Electronic equipment
Transportation equipment
Other equipment
Electronic equipment
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(4) Impairment test and provision for impairment
On balance sheet date, the company carries out an inspection if there is any evidence that the fixed asset is impaired. If fixed asset is impaired,
the company will estimate its recoverable amount and carry out impairment test, the impairment loss should be recognized in profit or loss and
provision identified, based on the lower of its carrying value and recoverable amount. The impairment loss will never be reversed in the future
once it is ascertained.
Recoverable amount is measured as the higher value of fixed asset’s fair value less costs to sell and present value of its estimated cash flow.
The net fair value for sale is sell price agreed less directly attributable costs to sell, when there is fair price for transaction according to the
sales agreement can be directly allocated the price minus the disposal expenses determined the amount of assets; when without fair price for
transaction but existence of similar active market according to the market price minus the disposal expenses to determine the amount.
(5) Additional instructions
None
15. Construction in process
(1) Classification
The Company will classify construction in progress as self- construction and contract-out- construction.
(2) Criterion and timeless of Construction in progress being transferred to fixed assets
Construction in progress is transferred to fixed assets when the project is substantially ready for its intended use. Examples of situations that
shows being ready for its intended use are listed below
① The physical construction of fixed assets (including installation) have been completed or substantially completed;
② Have been pre-production or test run, and the results show that the assets to normal operation or to stabilize the production of qualified
products, or test the results show that it can operate normally or business;
③ Expenditure in the future associated with fixed assets, little or no place;
④ The acquisition or construction of fixed assets has reached the design or contract requirements, or consistent with the basic design or
contract requirements.
(3) Method of the carrying out impairment test and provision of impairment
On balance sheet date, the Company carries out an inspection if there is any evidence that the construction in progress is impaired. If
construction in progress is impaired, the Company will estimate its recoverable amount and carry out impairment test, the impairment loss
should be recognized in profit or loss and provision identified, based on the lower of its carrying value and recoverable amount. The impairment
loss will never be reversed in the future once it is ascertained.
Recoverable amount is measured as the higher value of construction in progress’s fair value less costs to sell and present value of its
estimated cash flow.
16. Borrowing expense
(1) Recognition of borrowing expense capitalization
The borrowing expense which could be directly attributable to purchase or production of assets satisfying capitalization condition, starts
capitalization and are recorded to the cost of related assets. Other borrowing expense is recognized as expense as soon as it happens. Assets
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
satisfying capitalization principle generally refer to fixed assets, investment property and inventories which can only arrive at predicted
available-for-use or available-for-sale state after quite a long time in purchase or production activities.
(2) The capitalization period of borrowing expense
The capitalization period: from borrowing cost starts capitalization to stop capitalization. The capitalization of the borrowing costs suspended
during not included.
(3) During the suspension of capitalization
The suspension of capitalization: in the construction or production process is interrupted abnormally, and the interruption lasts for more than
three months, borrowing expense capitalization should be suspended.
(4) Calculation of borrowing expense capitalization
Amount of borrowing expense capitalization: ① Capitalization shall be exercised for interest expense actually occurred from special
borrowings in current period after deduction of the interest income arising from unutilized borrowing capital which is saved in banks or
deduction of investment income obtained from temporary investment; ② For reorganization of capitalized amount of common borrowing, it
equals to the weighted average of the assets whose accumulated expense or capital disburse is more than common borrowing times
capitalization rate of occupied common borrowing. Capitalization rate is determined according to weighted average interest rate of common
borrowing. ③ amortization of discount or premium by effective interest method in each accounting period ,adjusting interest expense in the
responding period , when borrowings happened originally in discount or premium.
Effective interest method determines interest expense, amortization of discount or premium in effective interest, which is IRR of carrying value
of the borrowing equal to NPV of future estimated cash flows resulting from the borrowing.
17. Biological assets
Not applicable.
18. Oil and gas assets
Not applicable.
19. Intangible assets
(1) Measurement of intangible assets
The intangible assets shall be initially measured at cost. For those intangible assets purchased in by the company, their effective cost consist of
actual payment and relevant other expenditure; for the intangible assets input by investors, effective cost is determined according to the value
agreed in investment contracts and agreements, while if the agreed value is not fair, then effective value is confirmed according to fair value.
The cost of an internally generated intangible asset is the sum of expenditure incurred from the date when the intangible asset first meets the
recognition criteria to the date that expected usable condition are reached.
Subsequent measurement of intangible assets, classified as: ①the intangible asset with a finite useful life should be allocated on straight-line
method, the amortization period and the amortization method for an intangible asset shall be reviewed at least at each financial year-end, shall
be adjusted if necessary; ② no amortization for intangible assets with uncertain useful life, but at the end of each accounting period,
re-examination on useful life of intangible assets, for any evidence proving that life of intangible assets is limited, then estimate of its useful life,
according to the straight-line amortization.
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(2) Estimation of useful life of intangible asset with a finite useful life
The intangible assets with limited useful life, estimating its useful life often consider the following factors: ① for the asset of the relevant legal
provisions control period or similar restrictions, such as franchise system, the lease term, etc; ② using the assets in the production of
products usually the life cycle, can obtain similar asset life information; ③ the connection with other assets life.
Item Estimated useful life Basis
(3) Basis of determination indefinite useful life intangible assets
An intangible asset is regarded as having an indefinite useful life when there is no foreseeable limit to the period over which the asset is
expected to generate economic limit to benefits for the company. The useful life of intangible asset that are not stipulated by contact or laws is
ascertained based on previous experience or experts’ verification. If the period in which the asset’s future economic benefits are expected to
flow to the entity cannot be confirmed according to above ways, the company classified the intangible asset as intangible asset with indefinite
useful life.
Criteria of indefinite use life: ① acquisition of an intangible asset arising from contractual or other legal rights without prescribed detailed use
life; ② connection historical information with experts verification, the useful life of intangible asset that are not stipulated by contact or laws is
ascertained yet.
(4) The provision for impairment of intangible assets
On balance sheet date, the Company carries out an inspection if there is any evidence that the intangible asset is impaired. If intangible asset
is impaired, the Company will estimate its recoverable amount and carry out impairment test, the impairment loss should be recognized in profit
or loss and provision identified, based on the lower of its carrying value and recoverable amount. The impairment loss will never be reversed in
the future once it is ascertained.
Recoverable amount is measured as the higher value of intangible asset’s fair value less costs to sell and present value of its estimated cash
flow.
(5) Division criteria of the research phase and development phase
Research cost is recorded to profit or loss when it is incurred. An intangible asset arising from the development phase of an internal project
shall be recognized if, and only if, the Company can demonstrate all of the following: ① the technical feasibility of completing the intangible
asset so that it will be available for use or sale; ② its intention to complete the intangible asset and use or sell it; ③ how the intangible
asset will generate probable future economic benefits, the entity can demonstrate the existence of a market for the output of the intangible
asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset can be proved; ④ the availability of
adequate technical, financial resource and other resources to complete the development and the ability to use or sell the intangible asset; ⑤
the expenditure attributable to the intangible asset during its development can be measured reliably. Cost in development phase that does not
meet above conditions is recorded to profit or loss when it is incurred.
Costs of internal projects should be distinguished into cost in research phase and cost in development phase. Research cost refers to cost
arising from inventive activities aimed at obtaining new knowledge. It is typical of planning and exploratory. Development cost refers to cost
arising from activities that apply result in research phase or other knowledge in a certain plan or design, to produce new or substantially
improved material, equipment, and products etc. before commercial production or application. It is typical of being concise and to the point and
higher possibility of success.
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(6) Internal research and development project expenditure accounting
Designated by the above method, the full cost of research phase expenditure be expended, the development phase expenditure in line with the
conditions of the capital to be capitalized, and do not meet the conditions of capitalize expense should through profit or loss.
20. Long-term prepaid expenses
The long-term prepaid expenses of the Company are expenses for current and future periods that have been disbursed but will be amortized
over one year (not include 1 year). It mainly includes parking fees, housing and decoration costs. Long-term prepayments are amortized based
on the expected beneficial periods. If such long-term deferred expense could not bring benefit to following accounting periods, the unamortized
value of the item shall be fully transferred to current gains and losses.
21. Repurchase conditions of the transferred asset
22. Provision
(1) Recognition criteria
When contingencies related obligation is present obligation of the company; probable that an outflow of economic benefits from the company
will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.
(2) Measurement
The estimated liabilities for initially recognized should be the best estimate of the expenditure required to settle the present obligation, such as
the existence of a continuous range of expenditure required, and the various outcomes within the same likelihood, the best estimate in
accordance with the intermediate range value determined; involving multiple projects, according to a variety of possible outcomes and
associated probabilities to determine the best estimate.
On balance sheet date, the company reviews the carrying amount of provision. Where there is any concrete evidence that its carrying amount
is not the best estimate, the carrying amount is adjusted based on the best estimate.
23. Share payment and the equity instruments
Not applicable.
24. Repurchase of shares
Not applicable.
25. Revenues
(1) Revenue recognition for sale of goods
Revenue from the sale of goods shall be recognized when all the following conditions have been satisfied: ① the significant risks and
rewards of ownership of the goods have been transferred to the buyer by the company; ② the company retains neither continuous
managerial involvement to the degree usually associated with the ownership nor effective control over the sold goods; ③ the amount of
revenue can be measured reliably; ④ it is probable that the economic benefits associated with the transaction will flow to the company; ⑤
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Where the receipt of revenue agreed in the contract is delayed beyond the normal credit conditions, which is of financing intention, the receipt
of revenue shall be determined on the basis of the fair value of the contract.
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(2) Revenue recognition from alienation of right to use assets
The revenues from alienation of right to use assets will be recognized when all the following conditions have been satisfied: ① it is probable
that the economic benefits associated with the transaction will flow to the company; and ② the amount of revenue can be measured reliably.
(3) Revenue recognition for rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall
be recognized by reference to the stage of completion of the transaction at the balance sheet date. The stage of completion is based on the
measurement of the work completed.
If the Company cannot reliably estimate the service performed the date of the balance sheet, the company applies the following treatment
respectively: ① if the service expenses incurred are recoverable, the revenue from rendering of services shall be recognized to the extent of
the expenses incurred and the cost of sale transferred at the same amount; ② if the service expenses incurred are not recoverable, the
expenses incurred shall be recognized in the profit or loss and no revenue from rendering of services shall be recognized.
26. Government grant
(1) Types of government grant
Government grant comprise government grant related with assets and grant related with income.
(2) Accounting for government grant
Government grant related with assets shall be recognized as deferred income, which is recognized as income over the useful life of the asset.
But the government grant measured at nominal amounts shall be directly included in the current profit or loss. The government related with
income shall be treated respectively in accordance with the circumstances as follows: ① the grant used for compensating the related future
expenses or losses of the company shall be recognized as deferred income and shall included in the current profit or loss during the period
when the relevant expenses are recognized; ② the grant used for compensating the related expenses or losses incurred to the company
shall be directly included in the current profit or loss.
27. Deferred tax asset or liability
The deferred tax assets and deferred tax liabilities confirmation:
(1) A deferred tax asset and deferred tax liability shall be recognized by a difference (temporary difference) between the carrying amount of an
asset or liability and its tax base, as well between carrying amount of items which have a tax base according to tax law but not recognized as
assets or liabilities and its tax base, conjunction with expected income tax rate to be applied in the period when recovery of the asset or
settlement of the obligation occur.
(2) The company shall recognize the corresponding deferred tax asset for deductible temporary differences as no higher than the taxable
profits that will be available in the future, against which the temporary difference can be utilized. The company shall recognize the deferred tax
asset that has not been recognized before, once there are sufficient evidences probably showing sufficient taxable profits will be available
against the temporary deductible difference. The company shall reduce the carrying amount of a deferred tax asset to the extent that it is no
longer probable that sufficient taxable profits will be available in future periods to allow the benefit of the deferred tax asset to be utilized.
(3) The company recognizes a deferred tax liability for all temporary differences arising from investments in subsidiaries, branches and
associates, and interests in joint ventures, unless the company can control the time when temporary difference will reverse in the foreseeable
future, and the temporary difference will probably not reverse in the foreseeable future simultaneously. The company recognizes a deferred tax
asset for all deductible temporary differences arising from investments in subsidiaries, branches and associates, and interests in joint ventures,
to the extent that it is probable that: the temporary difference will reverse in the foreseeable future; and taxable profit will be available against
71
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
which the temporary difference can be utilized.
28. Operating and finance leases
(1) Operating lease accounting treatment
Company as lessee under operating leases:
Operating leases rent should be included in the relevant costs or profits and losses under operating leases in each period of the lease term on
straight-line basis. The initial direct costs recorded into the current profits and losses when it happens. Contingent rental recorded into the
current profits and losses when it actual happens.
Company as lessor under operating leases:
Operating lease rental income is recognized on a straight-line basis over the lease period during the profit and loss .The initial direct costs
recorded into the current profits and losses when it happens. Contingent rental recorded into the current profits and losses when it actual
happens.
(2) Finance lease accounting treatment
Company as lessee under a finance lease:
On leasing date, the lower of fair value and present value of minimum lease payments as the recorded value of the leased asset, the minimum
lease payments as stated value of long-term payables, and the difference is recognized as unrecognized finance charges. In addition, in the
process of negotiations and the signing of the lease contract, the initial direct costs attributable to the leased item included in the lease asset
value. Minimum lease payments net of unrecognized finance charges, the balance of long-term liabilities and long-term liabilities due within one
year are listed.
Unrecognized financing charges using the effective interest method calculated and recognized the costs in the current period during the leasing
period. Contingent rental recorded into the current profits and losses when it actual happens.
Company as lessor under a finance lease:
On leasing date, the minimum lease receipts and the initial direct costs as the recorded value of the finance lease receivable, at the same time
record the unguaranteed residual value; the difference of minimum lease receipts, the initial direct costs, the unguaranteed residual value and
its present value is recognized as unearned finance income. Finance lease receivables net of unrealized financing income, the balance are
listed as long-term debt and long-term debt within one year.
Unrealized finance income over the lease term using the effective interest method to recognize the current financing income. Contingent rental
recorded into the current profits and losses when it actual happens.
29. Assets held for sale
(1) Assets held for sale recognition criteria
Meet the following conditions: the company has made a resolution to dispose of the asset; the company has signed an irrevocable transfer
agreement with the transferee and the transfer of asset will be completed within one year.
(2) Accounting treatment of assets held for sale
For the fixed assets held for sale, it shall adjust the fixed assets’ expected net salvage value, the expected net salvage value of fixed assets
reflect the amount of fair value minus the disposal expenses, but not exceeding original carrying value of fixed assets when it meets holds for
sale conditions, the difference original book value higher than the adjusted expected net salvage value, should be recognized as the loss of
72
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
asset impairment included in current profits and losses.
Other non-current assets held for sale, mutatis mutandis the above principle, non-current assets held for sale include individual assets and
disposal groups, a disposal group is a group of assets as a whole for sold or other disposition way disposed together.
30. Asset securitization business
Not applicable.
31. Hedging accounting
Not applicable.
32. The main changes in accounting policies and accounting estimates
The reporting period of significant accounting policies, accounting estimates change:
□ Yes √ No □Not applicable
(1) Changes in accounting policies:
□ Yes √ No □Not applicable
(2) Changes in accounting estimates:
□ Yes √ No □Not applicable
33. Correction of previous errors and effects
During the report previous accounting error corrected:
□ Yes √ No □Not applicable
34. Other major accounting policies, accounting estimates and financial statements preparation method
None
V Taxations
1. Major taxes and tax rates
Type of tax Tax base Tax rate
VAT Income from sales of goods and materials 17%
Consumption tax
Business tax Income from lease, installation ,procession, rendering of service 3%-5%
73
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Type of tax Tax base Tax rate
Urban maintenance and construction tax Turnover tax 7%
Corporate income tax Taxable income 15%-25%
Education surcharge Turnover tax 3%
Local education surcharge Turnover tax 1%
Income tax rate for branches: branches perform the same rate.
2. Tax incentives and approvals
Subsidiary Nanjing Putian Telege Intelligent Building Co., Ltd. and Nanjing Putian Changle Telecommunications Equipment Co., Ltd. is a
high-tech enterprise, at a reduced rate of 15 % pay enterprise income tax.
Putian Telecommunications (Hong Kong) Co., Ltd. was established in Hong Kong on 1 December 2000, and is subject to the Enterprise Income
Tax at a rate of 16.5% according to relevant rules in Hong Kong.
3. Other instructions
The income tax, tax preferential policies advancements have not changed compared to last year.
VI. Business combination and consolidated financial statements
Overall description of the business combinations and consolidated financial statements:
The Company shall put subsidiaries which it controlling totally, main body with special purpose into consolidated financial statements.
Consolidated financial statements have been prepared in accordance with the ASBEs No. 33 - Consolidated Financial Statements and relevant
supplementary regulations. All significant transactions and balances between the Company and its subsidiaries are eliminated for the purpose
of consolidation. The equity of subsidiaries not held by the parent company shall be presented separately as minority shareholders’ equity in
consolidated shareholders’ equity.
Any difference arising from the inconformity of accounting year or accounting policies between the subsidiaries and the Company shall be
adjusted in the consolidated financial statements.
When preparing the consolidated financial statements, if the Company acquired the subsidiary through business combination not involving
under common control, the separate financial statements shall be adjusted based on the fair value of identifiable net assets at the acquisition
date. If the subsidiary is acquired through business combination involving common control, the consolidated financial statements shall include
the carrying amount of assets, liabilities, operating result and cash flow of the subsidiary at the beginning of the current period, as if business
combination also had occurred the beginning of the current period.
74
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
1. Subsidiary
(1) Subsidiaries that are setup or obtained by the investment
Balance of other Shareholding Voting
The Year End’s
Essentially proportion Rights
Name Business Registered Business actual amount of
Type Registration Currency constituting net (%) proportion
nature capital(RMB’0000) Scope capital
Investment in (%)
Investment
Subsidiary
Nanjing Southern
Telecommunications Stated-controlled Nanjing Trading 3,420.50 CNY telecommunications 33,175,148.00 98.24 98.24
Company Limited
Nanjing Bada
Telecommunications Stated-controlled Nanjing 1,130.14 CNY telecommunications 5,610,000.00 60.00 60.00
Manufacture
Co., Ltd
Nanjing Putian
Information Trading&
Stated-controlled Nanjing 1,400.00 CNY telecommunications 13,860,000.00 99.98 99.98
Technology Manufacture
Company Ltd.
Nanjing Putian
Trading&
Telege Intelligent Stated-controlled Nanjing 1,200.00 CNY telecommunications 3,320,003.45 45.77 45.77
Manufacture
Building Ltd.
Putian
Telecommunications
Stated-controlled Hongkong Trading 200.00 HKD telecommunications 1,910,520.00 90.00 90.00
(Hong Kong) Co.,
Ltd.
Beijing Picom
Telecommunications Stated-controlled Beijing Trading 50.00 USD telecommunications 1,854,910.00 51.00 51.00
Equipment Ltd
Nanjing Putian
Wongshi Trading&
Stated-controlled Nanjing 1,090.00 CNY telecommunications 40,997,683.00 99.42 99.42
Telecommunications Manufacture
Co., Ltd.
Nanjing Putian
Changle Trading&
Stated-controlled Nanjing 1,000.00 CNY telecommunications 2,610,457.00 50.70 50.70
Telecommunications Manufacture
Equipment Co., Ltd.
Nanjing Putian
Trading&
Network Company Stated-controlled Nanjing 1,000.00 CNY telecommunications 7,741,140.40 78.00 78.00
Manufacture
Ltd.
Nanjing Putian Trading&
Stated-controlled Nanjing 475.00 CNY telecommunications 1,294,510.00 70.00 70.00
Telecommunication Manufacture
75
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Technology Co., Ltd
Nanjing Mennekes Trading&
Electric Appliances Limited company Nanjing 520.00 USD 57,831,011.71 75.00 75.00
Manufacture
Co., Ltd
Total 170,205,383.57
(Continued)
Amount in minority interest used for The balance after the parent company’ s owner’s equity writing down the excess of the
Name statements combined or not Minority interest writing down minority gain and loss current loss undertaken by minority shareholders of the subsidiary over the share
enjoyed by minority shareholders in the original owner’s equity of the subsidiary
Nanjing Southern
Telecommunications Yes 1,319,661.67
Company Limited
Nanjing Bada
Telecommunications Co., Yes 2,856,843.21
Ltd
Nanjing Putian Information
Yes 933.71
Technology Company Ltd.
Nanjing Putian Telege
Yes 36,286,673.24
Intelligent Building Ltd.
Putian Telecommunications
Yes -
(Hong Kong) Co., Ltd.
Beijing Picom
Telecommunications No -
Equipment Ltd
Nanjing Putian Wongshi
Telecommunications Co., Yes 216,780.96
Ltd.
Nanjing Putian Changle
Telecommunications Yes 18,414,865.93
Equipment Co., Ltd.
Nanjing Putian Network
Yes 5,020,489.21
Company Ltd.
Nanjing Putian
Telecommunication Yes 128,095.73
Technology Co., Ltd
Nanjing Mennekes Electric
Yes 22,031,758.10
Appliances Co., Ltd
Total 86,276,101.76
The other instruction of subsidiaries achieved through the establishment or investment: none.
76
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(2) Subsidiaries obtained by business combination under common control
Balance of other Shareholding Voting
The Year End’s Essentially proportion Rights
Name Business Registered Business
Type Registration Currency actual amount of constituting net (%) proportion
nature capital Scope
capital Investment Investment in (%)
Subsidiary
(Continued)
Amount in minority interest used for The balance after the parent company’ s owner’s equity writing down the excess of the
Name statements combined or not Minority interest writing down minority gain and loss current loss undertaken by minority shareholders of the subsidiary over the share
enjoyed by minority shareholders in the original owner’s equity of the subsidiary
(3) Subsidiaries obtained by business combination under different control
Balance of other Shareholding Voting
The Year End’s Essentially proportion Rights
Name Business Registered Business
Type Registration Currency actual amount of constituting net (%) proportion
nature capital Scope
capital Investment Investment in (%)
Subsidiary
(Continued)
Amount in minority interest used for The balance after the parent company’ s owner’s equity writing down the excess of the
Name statements combined or not Minority interest writing down minority gain and loss current loss undertaken by minority shareholders of the subsidiary over the share
enjoyed by minority shareholders in the original owner’s equity of the subsidiary
2. Special purpose entities or control over the operating entity entrusted with the operation or lessee, etc.
□Applicable √Not applicable
Special purpose entities or operating entity entrusted with the operation or lease by way of control of the other instructions: none.
3. The instructions of consolidation scope change
The scope of consolidation changed instructions:
Subsidiary Nanjing Mennekes Electric Appliances Co., Ltd which increased the shareholding on 31 December 2011, the statement of financial
position was included in the scope of consolidation on 31 December 2011, the income statement therefore included in the scope of
consolidation in the current period.
The reason of new consolidation compared with the previous year: stake increased to control standard.
4. During the reporting period newly incorporated into the scope of consolidation and no longer included in the
scope of consolidation
Newly included in the scope of consolidation of subsidiaries and special purpose entities, the operating entity entrusted with the operation or
77
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
lease by way of a control during this period.
Unit: Yuan
Item Net assets Net profit
Nanjing Mennekes Electric Appliances Co., Ltd. 89,714,184.08 2,072,328.93
No longer included in the scope of consolidation of subsidiaries and special purpose entities, the operating entity entrusted with the operation
or lease by way of control during this period.
Unit: Yuan
The net profit from beginning of the year to the
Item Net assets of the disposal date
date of disposal
Subsidiary Nanjing Mennekes Electric Appliances Co., Ltd which increased the shareholding on 31 December 2011, the statement of financial
position was included in the scope of consolidation on 31 December 2011, the income statement therefore included in the scope of
consolidation in the current period.
5. Business combination occurred under the same control during the reporting period
Judgment based on Income from the Profit from the Cash flow from the
The same actual
Consolidated party business combination beginning to the beginning to the beginning to the
control
under common control merger date merger date merger date
6. Business combination occurred under the different control during the reporting period
Consolidated party Amount of goodwill Calculation of goodwill
7. The sales equity of loss of control over the subsidiary during the reporting period
Name of subsidiary The date of disposal Profit & loss recognition
8. The reverse purchase occurred during the reporting period
Calculation method of
The judgment basis of reverse
Backdoor party The method of combination cost consolidated goodwill or merge
purchase
through profit & loss
9. The merger by absorption during the reporting period
The type of absorption merger The main assets incorporated The main liabilities incorporated
Merger under the same control Item Amount Item Amount
78
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Merger under different control Item Amount Item Amount
10. Conversion of foreign currency financial statement for accounting entity operation at oversea
Items of assets and liabilities shall be conversed at average exchange rate as of 30 June 2012, announced by Foreign Exchange Bureau in
China. Items of equity shall be conversed at spot rate when occurring, except retained profit. Items of income statement shall be conversed at
average exchange rate as of 30 June 2012 and as 31 December 2011, announced by Foreign Exchange Bureau in China.
79
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
VII. Notes to the major items in the consolidated financial statements
1. Monetary funds
(1) Classification of Monetary funds
As of 30 June 2012 As of 31 December 2011
Item
Exchange Exchange
Original currency RMB converted Original currency RMB converted
rate rate
Cash on hand —— —— 49,555.08 —— —— 51,295.27
RMB —— —— 49,555.08 —— —— 51,295.27
Cash in bank —— —— 220,570,608.79 —— —— 264,588,809.72
RMB —— —— 214,886,854.39 —— —— 252,862,715.29
USD 735,948.77 6.3249 4,654,802.38 1,288,693.46 6.3009 8,119,928.62
HKD 1,168,758.41 0.8152 952,771.86 1,167,710.38 0.8107 946,662.80
EUR 208.79 9.8169 2,049.67 325,571.25 8.1625 2,657,475.33
GBP 9,418.18 7.8710 74,130.49 208.79 9.7116 2,027.68
Other monetary
—— —— 111,012,593.66 —— —— 47,780,110.60
funds
RMB —— —— 111,012,593.66 —— —— 46,930,675.76
USD —— —— —— 118,203.12 6.3009 744,786.04
EUR —— —— —— 12,820.68 8.1625 104,648.80
Total —— —— 331,632,757.53 —— —— 312,420,215.59
If there are any restrictions on the use due to mortgage, pledge or freeze, stored outside with a risk of potential recovery amounts should be
separate instructions.
80
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
2. Trading financial assets
(1) Trading financial assets
Unit: Yuan
Item Fair value at 30 June 2012 Fair value at 31 December 2011
Debt trading assets
Investments in equity instruments for trading
Financial assets designated as fair value through profit or loss
Derivative financial assets
Hedging instruments
Other
Total
(2) Change the restrictions on the trading of financial assets
Unit: Yuan
Other significant restrictions restricted conditions or the
Item As of 30 June 2012
realization
(3) Description of the hedging instruments and related hedging transactions
3. Notes receivables
(1).Receivable by category list below
Item As of 30 June 2012 As of 31 December 2011
Commercial acceptance bills 1,451,312.00 4,049,690.00
Bank acceptance bills 5,610,639.89 8,814,033.59
Total 7,061,951.89 12,863,723.59
(2). Pledged notes receivable
Unit: Yuan
Remitter Issuing date Maturity date Amount Notes
81
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Total -- -- 0.00 --
Description: none.
(3) Endorsed but not yet expired top five largest amount receivable listed below
Unit: Yuan
Remitter Date of issue Date of expiry Amount Memo
Total -- -- 0.00 --
The company has been endorsed to other parties , but not yet due bills: none.
Remitter Date of issue Date of expiry Amount Memo
1. Nanjing Prachanda Live Optical
2012/4/13 2012/7/13 1,000,000.00
Network Co., Ltd.
2. Nanjing Prachanda Live Optical
2012/4/13 2012/7/13 1,000,000.00
Network Co., Ltd.
3.China Telecom Co., Ltd. Chongqing
2012/5/18 2012/11/17 760,520.92
Branch
4.China Telecom Co., Ltd. Chongqing
2012/6/25 2012/9/24 706,842.00
Branch
5.Jiangsu Huaguan Electric Group
2012/1/19 2012/7/19 600,000.00
Co., Ltd.
4. Dividends receivable
Unit: Yuan
Item As of 31 December 2011 Increase during the period Decrease during the period As of 30 June 2012
Dividends receivable within 1
year
Include:
Dividends receivable more
82
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
than 1 year
Include: -- -- -- --
Total
5. Interest receivable
(1) Interest receivable
Unit: Yuan
Item As of 31 December 2011 Increase during the period Decrease during the period As of 30 June 2012
Total
(2) Overdue interest
Unit: Yuan
Loan units Overdue time (days) The amount of overdue interest
Total --
(3) Description of the interest receivable: none.
6. Accounts receivable
(1) Classification of accounts receivable
As of 30 June 2012
Book balance Provision
Classification
Proportion Proportion
Amount Amount
(%) (%)
1. Single amount dramatic and individual provision
for the accounts receivable
2. Classification as the group of provision for
83
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
account receivable
Group1 334,813,561.81 36.41 150,752.00 0.05
Group 2 528,175,969.28 57.45 -
Group 3 46,502,908.77 5.06 10,205,677.81 21.95
Subtotal 909,492,439.86 98.92 10,356,429.81 1.14
3. Single amount not significant but single provision
9,951,734.90 1.08 9,951,734.90 100.00
for accounts receivable
Total 919,444,174.76 100.00 20,308,164.71 2.21
As of 31 December 2011
Book balance Provision
Classification
Proportion Proportion
Amount Amount
(%) (%)
1. Single amount dramatic and individual provision
for the accounts receivable
2. Classification as the group of provision for
account receivable
Group1 265,203,673.33 34.97 4,315,816.31 1.63
Group 2 431,115,076.16 56.85
Group 3 51,886,589.43 6.84 7,747,954.30 14.93
Subtotal 748,205,338.92 98.66 12,063,770.61 1.61
3. Single amount not significant but single provision
10,137,435.85 1.34 10,137,435.85 100.00
for accounts receivable
84
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Total 758,342,774.77 100.00 22,201,206.46 2.93
Notes：Single amount dramatic and individual provision for accounts receivable refers to single exceed RMB 10,000,000.00 Yuan, test no
impairment, the company according to age analysis accrual impairment provision. According to the group of receivables provision for more than 2
years of age receivables, via test no impairment, according to age analysis accrual impairment provision.
Individually significant receivables and individual provision for bad debts at the end of the period:
□ Applicable √ Not applicable
Adopt age analysis provision in group as follows:
√Applicable □Not applicable
As of 30 June 2012 As of 31 December 2011
Age
Proportion Proportion
Book balance Provision Book balance Provision
(%) (%)
Within 1 year
311,734,346.13 81.75 - 259,502,118.13 81.84
(contain 1 year)
Subtotal within
311,734,346.13 81.75 - 259,502,118.13 81.84
1 year
1 to 2 years 39,211,843.02 10.28 - 24,550,408.28 7.74
2 to 3 years 13,027,275.28 3.42 1,302,727.53 17,797,710.89 5.61 1,779,771.09
Over 3 years 17,343,006.15 4.55 9,053,702.28 15,240,025.46 4.81 10,283,999.52
3 to 4years 7,627,950.75 2.00 2,288,385.23 5,520,536.70 1.74 1,656,161.01
4 to 5 years 4,703,439.60 1.23 1,881,375.84 658,683.83 0.21 263,473.52
5 years or
5,011,615.80 1.32 4,883,941.21 9,060,804.93 2.86 8,364,364.99
above
Total 381,316,470.58 100.00 10,356,429.81 317,090,262.76 100.00 12,063,770.61
Portfolio, adopt balance percentage of the provision for bad debts:
□ Applicable √ Not applicable
Portfolio, adopt other methods of the provision for bad debts:
85
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
√ Applicable □Not applicable
Unit: Yuan
Item Book balance Provision for bad debts
Group 2 528,175,969.28 0.00
Total 528,175,969.28 0.00
Closing single amount not significant but single provision for accounts receivable
√ Applicable □Not applicable
Proportion
Receivables Book amount Bad debt Reason
(%)
Beijing Zhen Yuan Innovation and Technology Development Aging longer difficult
154,595.34 154,595.34 100.00
Corporation to recover
Aging longer difficult
254,114.19 254,114.19 100.00
Taiyuan High-tech Industrial Import and Export Co. to recover
Aging longer difficult
1,385,839.64 1,385,839.64 100.00
Jiangsu Changzhou Dahua Co. to recover
Aging longer difficult
836,278.42 836,278.42 100.00
Hubei provincial public security to recover
Aging longer difficult
119,323.53 119,323.53 100.00
Zhongshan Group International Trade Center to recover
Aging longer difficult
1,543,794.46 1,543,794.46 100.00
NEPAL TETE to recover
Aging longer difficult
616,626.45 616,626.45 100.00
XI'AN OVERLOAD SCIENCE to recover
Aging longer difficult
1,782,643.57 1,782,643.57 100.00
M/S WHISTLER TELECOM(PVT) LTD to recover
Aging longer difficult
103,534.04 103,534.04 100.00
PRADUFA to recover
Aging longer difficult
12,500.00 12,500.00 100.00
China Unicom Nanjing branch to recover
86
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Chongqing Eagle communication Technology Development
1,093,571.51 1,093,571.51 100.00 Lawsuit
Co., Ltd.
Beijing Tongchengdaye Communication Technology Co., Ltd. 785,065.00 785,065.00 100.00 Lawsuit
Beijing Blue Scene Inheritance Communication Technology
234,878.00 234,878.00 100.00 Lawsuit
Co., LTD, Chengdu Branch
Shandong University of Traditional Chinese Medicine 264,868.40 264,868.40 100.00 Lawsuit
Jiangsu Taihewei Nets Technology Co., Ltd. 419,504.72 419,504.72 100.00 Lawsuit
Heilongjiang Blue Ocean Silver Ann technology Development
155,111.86 155,111.86 100.00 Lawsuit
Co., LTD
Changchun Jiachen Network Technology Co., LTD 30,162.97 30,162.97 100.00 Lawsuit
Suzhou Tyrone Real Estate Development Co. 159,322.80 159,322.80 100.00 Lawsuit
Total 9,951,734.90 9,951,734.90 —— ——
(2) Current payback or return of receivables
Unit: Yuan
Reversed or recovered
Reversed or recovered Determine the basis of the before the accumulated To reversal or recover
Receivables
reasons original bad debts amount of provision for bad amount
debts
Total -- -- 0.00 --
Closing single amount not significant but single provision for accounts receivable
√ Applicable □Not applicable
Proportion
Receivables Book amount Bad debt Reason
(%)
Beijing Zhen Yuan Innovation and Technology Development Aging longer difficult
154,595.34 154,595.34 100.00
Corporation to recover
Aging longer difficult
254,114.19 254,114.19 100.00
Taiyuan High-tech Industrial Import and Export Co. to recover
87
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Aging longer difficult
1,385,839.64 1,385,839.64 100.00
Jiangsu Changzhou Dahua Co. to recover
Aging longer difficult
836,278.42 836,278.42 100.00
Hubei provincial public security to recover
Aging longer difficult
119,323.53 119,323.53 100.00
Zhongshan Group International Trade Center to recover
Aging longer difficult
1,543,794.46 1,543,794.46 100.00
NEPAL TETE to recover
Aging longer difficult
616,626.45 616,626.45 100.00
XI'AN OVERLOAD SCIENCE to recover
Aging longer difficult
1,782,643.57 1,782,643.57 100.00
M/S WHISTLER TELECOM(PVT) LTD to recover
Aging longer difficult
103,534.04 103,534.04 100.00
PRADUFA to recover
Aging longer difficult
12,500.00 12,500.00 100.00
China Unicom Nanjing branch to recover
Chongqing Eagle communication Technology Development
1,093,571.51 1,093,571.51 100.00 Lawsuit
Co., Ltd.
Beijing Tongchengdaye Communication Technology Co., Ltd. 785,065.00 785,065.00 100.00 Lawsuit
Beijing Blue Scene Inheritance Communication Technology
234,878.00 234,878.00 100.00 Lawsuit
Co., LTD, Chengdu Branch
Shandong University of Traditional Chinese Medicine 264,868.40 264,868.40 100.00 Lawsuit
Jiangsu Taihewei Nets Technology Co., Ltd. 419,504.72 419,504.72 100.00 Lawsuit
Heilongjiang Blue Ocean Silver Ann technology Development
155,111.86 155,111.86 100.00 Lawsuit
Co., LTD
Changchun Jiachen Network Technology Co., LTD 30,162.97 30,162.97 100.00 Lawsuit
88
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Suzhou Tyrone Real Estate Development Co. 159,322.80 159,322.80 100.00 Lawsuit
Total 9,951,734.90 9,951,734.90 —— ——
During this year no full provision for bad prophase preparation, or larger proportion, but in this period fully recovery or payback, or recovery or
payback larger proportion of account receivable.
(3) The actual write-off of accounts receivable during the reporting period
Unit: Yuan
Nature of the Related party
Name Write-off time Write-off amount Write-off reasons
receivables transactions
Total -- -- 0.00 -- --
Description of accounts receivable write-off: none.
(4) Accounts receivable due from shareholder who has more than 5% (including 5 %) voting shares of the Company
at year-end
√Applicable □Not applicable
Unit: Yuan
As of 30 June 2012 As of 31 December 2011
Name of the debtors
The amount of The amount of provision
Book balance Book balance
provision for bad debts for bad debts
China Putian Co., Ltd. 30,376,485.40 0.00 27,391,490.91 0.00
Total 30,376,485.40 0.00 27,391,490.91 0.00
(5) Top 5 debtors of accounts receivable
Proportion of
Relationship with the
Name of the debtors Amount Aging total amount
Company
(%)
China Telecom Co., Ltd. Jiangsu Branch non-related party 129,087,312.82 Within 2 years 14.04
Agricultural Bank of China non-related party 31,712,852.29 Within 2 years 3.45
China Putian Co., Ltd. parent company 30,376,485.40 Within 2 years 3.30
Beijing Xinliwen Technology Co., Ltd. non-related party 27,013,450.20 Within 1 year 2.94
89
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Proportion of
Relationship with the
Name of the debtors Amount Aging total amount
Company
(%)
China TieTong Co., Ltd. Jiangsu Branch non-related party 25,429,732.75 Within 1 year 2.77
Total —— 243,619,833.46 —— 26.50
(6) Accounts receivable of related parties accounts
Proportion of total
Name of the debtors Relationship with the Company Amount
amount (%)
Nanjing Putian Zhongyou Telecommunication Co., Ltd. Associated enterprise 215,472.80 0.02
China Putian Co., Ltd. Parent company 30,376,485.40 3.30
Chengdu Putian Telecommunications Cable Co., LTD Under the same parent company 208,485.88 0.02
Shanghai Putian Post and Telecommunications
13,341,700.00 1.45
Technology Co., Ltd. Under the same parent company
Nanjing Prachanda Live Optical Network Co., Ltd. Associated enterprise 14,372.07 0.00
Total —— 44,156,516.15 4.79
(7) Receivables derecognised
Unit: Yuan
Item Derecognised amount Gains or losses associated with the derecognition
Total 0.00 0.00
(8) Securitization of receivables, lists the amount of assets and liabilities of continuing involvement in the formation
Unit: Yuan
Item As of 30 June 2012
Assets:
Subtotal of assets 0.00
Liability
90
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Subtotal of liability 0.00
7. Other receivables
(1) Classification of other receivables
As of 30 June 2012
Classification Book balance Provision
Amount Proportion (%) Amount Proportion (%)
1. Single amount dramatic and individual provision for the
28,912,122.71 33.84 28,912,122.71 100.00
accounts receivable
2. Classification as the group of provision for account receivable
Group1 20,000,000.00 23.41 6,150,000.00 30.00
Group 2 24,587,992.46 28.78
Group 3 11,945,959.16 13.97 3,755,472.43 32.69
Subtotal 56,533,951.62 66.16 9,905,472.43 17.52
3. Single amount not significant but single provision for accounts
receivable
Total 85,446,074.33 100.00 38,817,595.14 45.43
As of 31 December 2011
Book balance Provision
Classification
Proportion
Amount Proportion (%) Amount
(%)
91
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
1. Single amount dramatic and individual provision for the accounts
28,912,122.71 32.05 28,912,122.71 100.00
receivable
2. Classification as the group of provision for account receivable 61,308,735.73 67.95 5,985,463.80 9.76
Group1 20,000,000.00 22.17 2,300,000.00 11.50
Group 2 31,274,901.09 34.66 - -
Group 3 10,033,834.64 11.12 3,685,463.80 36.73
Subtotal 61,308,735.73 67.95 5,985,463.80 9.76
3. Single amount not significant but single provision for accounts
- -
receivable
Total 90,220,858.44 100.00 34,897,586.51 38.68
Notes：Single amount dramatic and individual provision for other receivable refers to single exceed RMB 10,000,000.00 Yuan, test no impairment,
the company according to age analysis accrual impairment provision. According to the group of other receivables provision for more than 2 years of
age receivables, via test no impairment, according to age analysis accrual impairment provision.
Individually significant receivables and individual provision for bad debts at the end of the period:
√ Applicable □ Not applicable
Other receivables Book value Amount of bad debts Proportion Reasons
Beijing Picom
Aging longer difficult to
Telecommunications 28,912,122.71 28,912,122.71 100%
recover
Equipment Ltd.
Total 28,912,122.71 28,912,122.71 -- --
Adopt age analysis provision in group as follows:
√ Applicable □ Not applicable
As of 30 June 2012 As of 31 December 2011
Age
Proportion Proportion
Book balance Provision Book balance Provision
(%) (%)
Within 1 year
414,687.00 1.30 - 1,388,438.21 4.62
(contain 1 year)
92
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Subtotal within 1
414,687.00 1.30 - 1,388,438.21 4.62
year
1 to 2 years 1,079,994.42 3.38 - 1,747,054.82 5.82
2 to 3 years 5,179,829.52 16.21 517,982.95 21,970,819.44 73.16 2,197,081.94
Over 3 years 25,271,448.22 79.11 9,387,489.48 4,927,522.17 16.4 3,788,381.86
3 to 4years 21,945,752.15 68.7 6,583,725.65 1,300,084.80 4.33 390,025.44
4 to 5 years 837,885.00 2.62 335,154.00 246,223.38 0.82 98,489.35
5 years or above 2,487,811.07 7.79 2,468,609.83 3,381,213.99 11.25 3,299,867.07
Total 31,945,959.16 -- 9,905,472.43 30,033,834.64 -- 5,985,463.80
Portfolio, adopt balance percentage of the provision for bad debts:
□ Applicable √ Not applicable
Portfolio, adopt other methods of the provision for bad debts:
√ Applicable □Not applicable
Unit: Yuan
Item Book balance Provision for bad debts
Group 2 24,587,992.46 0.00
Total 24,587,992.46 0.00
(2) Recovery or reversal of current other receivables
Unit: Yuan
Reversed or recovered
Reversed or recovered Determine the basis of the before the accumulated To reversal or recover
Other receivables
reasons original bad debts amount of provision for bad amount
debts
Total -- -- 0.00 --
Closing single amount not significant but single provision for accounts receivable
√ Applicable □Not applicable
Proportion
Other receivables Book amount Bad debt Reason
(%)
93
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Total
Description of not individually significant but portfolio credit risk is high other receivables: none.
(3) Written -off of other receivables in the current period
Unit: Yuan
Nature of the Related party
Name Write-off time Write-off amount Write-off reasons
receivables transactions
Total -- -- 0.00 -- --
Description of accounts receivable write-off: none.
(4) Other accounts due from shareholder who has more than 5% (including 5 %) voting shares of the Company at
year-end
□ Applicable Not applicable
(5) Contents or types of other receivables with larger amount
Type (or contents) The proportion of total other
Name of debtors Amount
of other receivables receivables (%)
Beijing Picom Telecommunications
28,912,122.71 Receivables and payables 33.83
Equipment Ltd
The Yuhua People's Government
20,000,000.00 Receivables and payables 23.4
Nanning Office
Total 48,912,122.71 —— 57.23
Description: none.
(6) Top 5 debtors of other receivables
Relationship with the Proportion of total
Name of debtors Amount Aging
Company amount (%)
Beijing Picom Telecommunications Equipment More than 6
Related party 28,912,122.71 33.83
Ltd yeas
94
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Relationship with the Proportion of total
Name of debtors Amount Aging
Company amount (%)
The Yuhua People's Government Nanning
20,000,000.00 23.4
Office Non-related party 3 to 5 years
Shanghai Communication Bidding Co., Ltd. Non-related party 1,220,000.00 1 to 2 years 1.43
China Mobile Communications Group Jiangsu
980,000.00 1.15
Co., Nanjing Branch Non-related party 2 to 6 years
Beijing Guanhua Tianshi Digital Technology
800,000.00 0.94
Co. , Ltd. Non-related party Within 1 year
Total —— 51,912,122.71 —— 60.75
(7) Other receivables from related parties
Proportion of total
Name of debtors Relationship with the Company Amount
amount (%)
Beijing Picom Telecommunications Equipment Ltd. Subsidiary 28,912,122.71 33.83
Total 28,912,122.71 33.83
(8) Receivables derecognised
Unit: Yuan
Item Derecognised amount Gains or losses associated with the derecognition
Total 0.00 0.00
(9) Securitization of receivables, lists the amount of assets and liabilities of continuing involvement in the formation
Unit: Yuan
Item As of 30 June 2012
Assets:
Subtotal of assets 0.00
Liability
95
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Subtotal of liability 0.00
8. Advances to suppliers
(1) Analysis of aging
As of 30 June 2012 As of 31 December 2011
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 25,711,030.20 56.03 26,336,847.23 69.99
1-2 years 15,774,805.65 34.37 9,249,764.76 24.58
2-3 years 2,384,949.83 5.20 69,289.94 0.18
over 3 years 2,017,750.40 4.40 1,974,378.51 5.25
Total 45,888,536.08 100.00 37,630,280.44 100.00
(2) Top five largest accounts paid in advance
Relationship with Proportion of total Reasons for
Company Amount Aging
the Company amount (%) un-settlement
1 to 2
China Putian Co., Ltd. related party 7,100,000.00 15.47 Contract executing
years
1 to 2
Putian YuHua Creative Park non-related party 4,220,000.00 9.20 Contract executing
years
Over 3
Putian YuHua Creative Park non-related party 1,800,000.00 3.92 Contract executing
years
1 to 2
Hangzhou Xinziyang Technology Co., Ltd. non-related party 1,987,938.00 4.33 Contract executing
years
Shanghai Dingsheng Electronics 2 to 3
non-related party 1,406,316.00 3.06 Contract executing
Technology Co., Ltd. years
Nanjing Wantian Technology Co., Ltd. non-related party 1,143,477.76 2.49 1 to 2 Contract executing
96
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Relationship with Proportion of total Reasons for
Company Amount Aging
the Company amount (%) un-settlement
years
Total —— 17,657,731.76 38.47 ——- ——
(3) Prepayment of shareholder who has more than 5% (including 5 %) voting shares of the Company
As of 30 June 2012 As of 31 December 2011
Company
Book balance Provision for bad debts Book balance Provision for bad debts
China Putian Co., Ltd. 7,100,000.00 0.00 3,670,000.00 0.00
Total 7,100,000.00 0.00 3,670,000.00 0.00
9. Inventories
(1) Classification of inventories
As of 30 June 2012 As of 31 December 2011
Item
Provision for Provision for
Book balance Book value Book balance Book value
devaluation devaluation
Raw materials 81,197,191.81 1,795,369.10 79,401,822.71 73,944,001.84 1,795,369.10 72,148,632.74
Goods-in-process 20,773,967.50 20,773,967.50 22,505,357.95 22,505,357.95
Finished goods 497,457,033.09 1,994,714.49 495,462,318.60 459,690,215.33 1,994,714.49 457,695,500.84
Reusable
materials
Consumable
biological assets
Total 599,428,192.40 3,790,083.59 595,638,108.81 556,139,575.12 3,790,083.59 552,349,491.53
(2) Provision for inventory devaluation
Amount reduced this period
As of 31 December Amount provided this
Item As of 30 June 2012
2011 period
Reversal Written off
97
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Amount reduced this period
As of 31 December Amount provided this
Item As of 30 June 2012
2011 period
Reversal Written off
Raw materials 1,795,369.10 1,795,369.10
Goods-in-process
Finished goods 1,994,714.49 1,994,714.49
Reusable materials
Consumable
biological assets
Total 3,790,083.59 3,790,083.59
(3) Description of provision for inventory impairment
Reasons for the allowance for
Item Basis of inventory provision Percentage of inventory balance (%)
inventories
Raw materials Net realizable value —— ——
Finished goods Net realizable value —— ——
Goods-in-process
Reusable materials
Consumable
biological assets
Description of inventories: none.
10. Other current assets
Unit: Yuan
Item As of 30 June 2012 As of 31 December 2011
Total
Description of other current assets: none.
98
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
11. Available - for - sale financial assets
(1) Available - for - sale financial assets
Unit: Yuan
Item Fair value at 30 June 2012 Fair value at 31 December 2011
Available-for-sale bonds
Available-for-sale equity instruments
Other
Total
Held-to-maturity investments reclassified as available-for-sale financial assets, reclassification amount is 0.00 Yuan.
Description of available-for-sale financial assets: none.
（2）Long-term debt investments available-for-sale financial assets
Unit: Yuan
Accumulated
Initial As of 31
receivables or As of 30 June
Bond Bond types Nominal value investment Maturity date December Current interest
interest 2012
cost 2011
received
Total -- -- --
Description of long-term debt investments include in available-for-sale financial assets: none.
12. Held to maturity investments
(1) Held-to- maturity investments
Unit: Yuan
Item As of 30 June 2012 As of 31 December 2011
Total
Description of held to maturity investments: none.
99
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(2) During the reporting period, the sale but not yet due to held-to- maturity investments
Unit: Yuan
Item Amount The investment proportion before sale (% )
Total --
Description for sale but not yet due to held-to-maturity investments during the reporting period: none.
13. Long - term receivables
Unit: Yuan
Item As of 30 June 2012 As of 31 December 2011
Finance leases
Include: unrealized financing income
Installment sale of goods
Installment sales rendering of services
Others
Total
14. Long-term equity investments of the joint ventures and associated ventures
Voting
proport
Place Proporti Total
ion in Total
Invested of Legal Business Registered Curre on of Total Total operati Net
Types investe net
units registra person nature capital ncy sharehol assets liability ng profit
d assets
tion ding（%） income
compa
ny (%)
Joint
-- -- -- -- -- -- -- -- -- -- -- -- --
venture
Nanjing
Sino-for Optical
Prachanda 100,84
eign Hanbin communic 4,000,000. 71,640, 29,208, 50,058, 2,499,0
Live Optical Nanjing USD 50.00 50.00 9,265.
joint Jiang ation of 00 781.37 484.05 576.74 75.20
Network Co., 42
venture production
Ltd
Affiliated
-- -- -- -- -- -- -- -- -- -- -- -- --
venture
100
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Nanjing Domesti
Communic
Putian c
ation 19,408
Datang (limited Yaomin 5,000,000. 12,683, 6,725,2 10,123, 337,15
Nanjing products CNY 40 40 ,962.5
Information liability g Yan 00 682.20 80.30 201.96 8.28
production 0
and Electric compan
sales, etc
Co., Ltd. y)
Nanjing Domesti
Communic
Putian c
ation
Zhongyou (limited Tiwu 1,000,000. 1,666, 360,55 1,305,5 61,538. -59,899
Nanjing products CNY 15 15
Telecommuni liability Zhao 00 154.48 5.82 98.66 46 .05
production
cation Co., compan
sales, etc
Ltd. y)
Domesti
Industrial
Putian High c
Xiaoch park venue 341,28 340,90
Technology (limited 337,548,1 374,23 6,837,2 165,37
Nanjing eng rental CNY 49.64 49.64 3,145. 8,909.3
Industry Co., liability 41.29 6.26 44.95 5.10
Zhang managem 61 5
Ltd. compan
ent etc
y)）
The instructions of significant differences of accounting policies , accounting estimates between joint ventures and associates: none.
15. Long-term equity investments
(1) List of Information of Long-term Equity Investment
Book balance at Book balance at Share holding
Invested units Accounting Initial cost of 31 December 31 December percentage of the
2010 Movement 2011
Method investment Company among
invested units (%)
Nanjing Putian Datang
Equity
Information and Electric 600,000.00 2,520,399.15 134,863.31 2,655,262.46 40
Method
Company Ltd
Nanjing Putian Zhongyou
Equity
Telecommunication Co., 300,000.00 238,892.31 -17,969.72 220,922.59 30
Method
Ltd.
101
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Putian High Technology Equity
167,548,141.29 168,945,752.43 82,092.20 169,027,844.63 49.64
Industry Co. , Ltd. Method
Shanghai Yulong Cost
23,310,000.00 14,721,843.51 14,721,843.51 17.79
Bio-tech Co., Ltd. Method
Qufu Yulong Bio-Tech Cost
- 3,113,727.00 3,113,727.00 17.79
Co., Ltd. Method
Nanjing Prachanda Live Equity
13,544,400.00 13,354,704.43 1,249,537.60 14,604,242.03 50
Optical Network Co., Ltd Method
Beijing Picom Cost
1,854,910.00 1,854,910.00 - 1,854,910.00 51
Telecommunications Method
Nanjing Yuhua Cost
420,915.00 420,915.00 420,915.00 10
Galvanization Factory Method
Hangzhou Putian
Cost
Swanking Electrical Co., 321,038.00 321,038.00 321,038.00 2.26
Method
Ltd
Nanjing Putian Industry Cost
181,701.84 181,701.84 181,701.84 10
Co., Ltd Method
Nanjing Putian Telege Equity
2,250,000.00 2,797,166.11 13,522.27 2,810,688.38 45
Cable Co., Ltd. Method
Total 210,331,106.13 208,471,049.78 1,462,045.66 209,933,095.44 ——
(Continued)
Depreciation
Voting right Interpretations of difference reserves Cash dividend
Invested units proportion of the Depreciation
Company between the equity percentage and withdrawn during the
among invested vote right percentage in the invested reserve
unit during the period
units (%)
period
Nanjing Putian Datang 40
Information and Electric
102
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Company Ltd
Nanjing Putian Zhongyou
Telecommunication Co., 30
Ltd.
Nanjing Putian
Telecommunication
49.64
Technology Industry Park
Co., Ltd.
Shanghai Yulong
17.79
Bio-tech Co., Ltd.
Qufu Yulong Bio-Tech
17.79
Co., Ltd.
Nanjing Prachanda Live
50
Optical Network Co., Ltd
Beijing Picom
51 1,854,910.00
Telecommunications
Nanjing Yuhua
10
Galvanization Factory
Hangzhou Swanking
2.26
Electric Appliance
Nanjing Putian Industry
10
Co. Ltd
Nanjing Putian Telege
45
Cable Co., Ltd.
Total —— —— 1,854,910.00 -
(2) Restricted to transfer funds to the investing enterprise
Unit: Yuan
The long-term equity investment projects limited Current cumulative unrecognized investment
Restricted reason
to transfer of funds to invested enterprises losses
None
103
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
There is no long-term equity investment with restriction for sale at the end of this period.
16. Investment property
(1) Investment properties measured at costs
As of 31 December Increase Decrease
Item As of 30 June 2012
2011 during the period during the period
Total original cost 10,032,417.29 10,032,417.29
Houses and buildings 6,390,269.42 6,390,269.42
Land use rights 3,642,147.87 3,642,147.87
Total accumulated depreciation and
3,375,819.34 103,215.96 3,479,035.30
accumulated amortization
Houses and buildings 2,331,009.31 43,235.64 2,374,244.95
Land use rights 1,044,810.03 59,980.32 1,104,790.35
Total net book value 6,656,597.95 6,553,381.99
Houses and buildings 4,059,260.11 4,016,024.47
Land use rights 2,597,337.84 2,537,357.52
Total accumulated provision for impairment 1,842,418.00 1,842,418.00
Houses and buildings 1,842,418.00 1,842,418.00
Land use rights
Total carrying value 4,814,179.95 4,710,963.99
Houses and buildings 2,216,842.11 2,173,606.47
Land use rights 2,597,337.84 2,537,357.52
Unit: Yuan
104
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
The period
Accrual of depreciation and amortization 103,215.96
Provision for investment property 0.00
(2) Investment properties measured at fair value
□ Applicable √ Not applicable
During the period, the expected disposal expenses that change measurement model of investment real estate and not completed property
certificate on an investment real estate, that should disclose the reason of not completed the property right certificate and expected to completed
time: none.
17. Fixed assets
(1) Lists of fixed assets and accumulated depreciation, including movement
Increased by Decrease
As of 31 Increase during As of 30 June
Item consolidation
December 2011 the period during the period 2012
during the period
Total original cost of fixed assets 249,527,394.61 4,130,887.70 8,972,331.40 244,685,950.91
Building/structure 102,957,574.91 860,911.91 103,818,486.82
Machinery equipment 72,485,671.65 483,352.90 2,156,201.37 70,812,823.18
Transportation equipment 16,880,535.13 1,334,407.00 748,075.32 17,466,866.81
Others 57,203,612.92 1,452,215.89 6,068,054.71 52,587,774.10
consolidation for Charge for the
the period period
Total accumulated depreciation 143,916,152.26 5,700,992.86 6,660,195.23 142,956,949.89
Building/structure 33,826,526.72 1,703,145.60 - 35,529,672.32
Machinery equipment 51,141,724.39 1,677,254.64 1,033,287.32 51,785,691.71
Transportation equipment 11,719,465.61 925,830.31 1,000,112.21 11,645,183.71
Others 47,228,435.54 1,394,762.31 4,626,795.70 43,996,402.15
105
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Increased by Decrease
As of 31 Increase during As of 30 June
Item consolidation
December 2011 the period during the period 2012
during the period
Total net book value of fixed assets 105,611,242.35 101,729,001.02
Building/structure 69,131,048.19 68,288,814.50
Machinery equipment 21,343,947.26 19,027,131.47
Transportation equipment 5,161,069.52 5,821,683.10
Others 9,975,177.38 8,591,371.95
Total impairment of fixed assets 3,459,509.19 968,724.13 2,490,785.06
Building/structure 539,124.00 539,124.00
Machinery equipment 573,461.78 573,461.78
Transportation equipment
Others 2,346,923.41 968,724.13 1,378,199.28
Total carrying value of fixed assets 102,151,733.16 99,238,215.96
Building/structure 68,591,924.19 67,749,690.50
Machinery equipment 20,770,485.48 18,453,669.69
Transportation equipment 5,161,069.52 5,821,683.10
Others 7,628,253.97 7,213,172.67
Note: The depreciation amount is RMB5,700,992.86 Yuan, in this period there was RMB0.00 Yuan construction in progress turn to fixed assets.
(2) Fixed assets not in use temporarily
Accumulated Impairment of Carrying value of
Item Original cost Notes
depreciation fixed assets fixed assets
Building/structure
106
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Accumulated Impairment of Carrying value of
Item Original cost Notes
depreciation fixed assets fixed assets
Machinery equipment 2,157,790.39 1,238,749.69 919,040.70 0.00 Plan to sell
Transportation equipment
Others 6,850.00 6,011.26 838.74 0.00 Plan to sell
Total 2,164,640.39 1,244,760.95 919,879.44 0.00
(3) Financing lease of fixed assets
□ Applicable √ Not applicable
(4) Fixed assets leased through operating leases
□ Applicable √ Not applicable
(5) Fixed assets held for sale
Unit: Yuan
Item Book value Fair value Expected disposal expenses Expected disposal time
None
(6) Information of fixed assets without certificate of title
Estimated Time to
Item Reasons for no secured property right certificate Complete Certificate of
Title
Building/structure No certification of land use right
Total
18. Construction in progress
(1)Basic information of Construction in progress
Item As of 30 June 2012 As of 31 December 2011
107
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Book Impairment Book Impairment
Book value Book value
balance provision balance provision
Nanjing Putian Telege Cable
Co., Ltd. assembly workshop 11,571,659.05 11,571,659.05 9,319,659.05 9,319,659.05
building
Nanjing Putian Yuhua Venture
751,823.54 751,823.54 743,162.49 743,162.49
Park
Nanjing Mennekes plant
1,658,292.62 1,658,292.62
transformation
Total 13,981,775.21 13,981,775.21 10,062,821.54 10,062,821.54
(2) Significant movement of construction in progress
Proportion of
As of 31 Increase during Transfer to Other As of 30 June project
Item Budget
December 2011 the year fixed assets decrease 2012 Investment in
budget (%)
Nanjing Putian Telege
Cable Co., Ltd. assembly 8,400,000.00 9,319,659.05 2,252,000.00 11,571,659.05
workshop building
Nanjing Putian Yuhua
20,000,000.00 743,162.49 8,661.05 751,823.54
Venture park
Nanjing Mennekes plant
2,000,000.00 1,658,292.62 1,658,292.62
transformation
Total 30,400,000.00 10,062,821.54 3,918,953.67 13,981,775.21
(Continued)
Including interest Interest
Accumulated Accumulated amount of Capital
Item capitalized amount capitalization
progress interest capitalization source
of the year rate of the year
108
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Including interest Interest
Accumulated Accumulated amount of Capital
Item capitalized amount capitalization
progress interest capitalization source
of the year rate of the year
Nanjing Putian Telege
Cable Co., Ltd. assembly Self-owned
workshop building
Nanjing Putian Yuhua
Self-owned
Venture park
Nanjing Mennekes plant
Self-owned
transformation
Total
(3) Provision for impairment of construction in progress
Unit: Yuan
As of 31 December Increase Decrease
Item As of 30 June 2012 Reason for provision
2011 during the period during the period
Total 0.00 0.00 --
(4) The progress of major construction in progress
Item The progress of the project Notes
(5) Description of the construction in progress
19. Construction materials
Unit: Yuan
Increase Decrease
Item As of 31 December 2011 As of 30 June 2012
during the period during the period
Total 0.00 0.00
109
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Description of the construction materials: none.
20. Disposal of fixed assets
Unit: Yuan
Book value at 31 December
Item Book value at 30 June 2012 Reasons for disposal
2011
Total --
Description the progress of fixed assets disposal more than one year: none.
21. Production of biological assets
(1) Cost measure
□ Applicable √ Not applicable
(2) Fair value measure
□ Applicable √ Not applicable
22. Oil and gas assets
Unit: Yuan
Increase Decrease
Item As of 31 December 2011 As of 30 June 2012
during the period during the period
Total original book value
Mineral interests
Mineral interests in
unproved
Wells and related facilities
Accumulated depletion
aggregate
Mineral interests
Wells and related facilities
Total oil and gas assets
accumulated impairment
losses
Mineral interests
110
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Mineral interests in
unproved
Wells and related facilities
Total book value of oil and gas
assets
Mineral interests
Mineral interests in
unproved
Wells and related facilities
Description of the oil and gas assets: none.
23. Intangible assets
(1) Intangible assets situation
As of 31 December Increase Decrease
Item As of 30 June 2012
2011 during the year during the year
Total original cost 37,021,136.87 23,931.62 37,045,068.49
Land use right 20,821,664.95 20,821,664.95
Software 10,081,577.90 23,931.62 10,105,509.52
Exclusive technology 6,117,894.02 6,117,894.02
Total accumulated amortization 16,638,575.51 501,191.34 17,139,766.85
Land use right 3,385,340.85 152,393.22 3,537,734.07
Software 7,792,239.57 290,178.36 8,082,417.93
Exclusive technology 5,460,995.09 58,619.76 5,519,614.85
Total net book value 20,382,561.36 19,905,301.64
Land use right 17,436,324.10 17,283,930.88
Software 2,289,338.33 2,023,091.59
111
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
As of 31 December Increase Decrease
Item As of 30 June 2012
2011 during the year during the year
Exclusive technology 656,898.93 598,279.17
Total accumulated provision for
impairment
Land use right
Software
Exclusive technology
Total carrying value 20,382,561.36 19,905,301.64
Land use right 17,436,324.10 17,283,930.88
Software 2,289,338.33 2,023,091.59
Exclusive technology 656,898.93 598,279.17
Note: The amortization amount of the intangible assets this year is RMB 501,191.34 Yuan.
(2) R&D project expenditure
Unit: Yuan
Decrease during the year
As of 31 December Increase during the
Item As of 30 June 2012
2011 year Recognized as
Through profit or loss
intangible assets
Total 0.00 0.00 0.00 0.00 0.00
Current development expenditure accounted for a proportion of the total expenditure of the current research and development projects is 0.00%.
Intangible assets formed through internal research and development proportion of intangible assets book value is 0.00%.
Description of the company’s development projects, including single value over 100 million Yuan and accounted for the assessed value the current
period, should disclose the name of the assessment agencies and assessment methods: none.
(3) Intangible assets without certificate of title
None
112
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
24. Goodwill
Unit: Yuan
Investment unit name or form goodwill As of 31 December Increase Decrease As of 30 June Provision for
matters 2011 2012 impairment
during the year during the year
Total
Description of the goodwill impairment test method and impairment provision: none.
25. Long - term prepaid expenses
Unit: Yuan
As of 31 December Increase Other reasons for
Item Amortization Other decrease As of 30 June 2012
2011 the reduction
during the year
Total --
Description of long - term prepaid expenses: none.
26. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets and deferred tax liabilities are not shown to offset the net
□Applicable √ Not applicable
(2) Deferred income tax assets and deferred tax liabilities are stated to offset the net
□Applicable √ Not applicable
Description of deferred income tax assets and deferred tax liabilities: none.
27. Details of asset impairment
Amount reduced this period
As of 31 December Amount provided this
Item As of 30 June 2012
2011 period
Reversal Written off
113
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Amount reduced this period
As of 31 December Amount provided this
Item As of 30 June 2012
2011 period
Reversal Written off
Bad debts reserve 57,098,792.97 2,026,966.88 59,125,759.85
Provision for inventory
3,790,083.59 3,790,083.59
devaluation
Provision of available-for-sale
financial assets
Provision of Held-to-maturity
investments
Provision of long-term equity
1,854,910.00 0.00 1,854,910.00
investments
Provision of investment
1,842,418.00 0.00 1,842,418.00
property
Provision of fixed assets 3,459,509.19 968,724.13 2,490,785.06
Provision of construction
materials
Provision of construction in
0.00 0.00
progress
Provision of productive
biological assets
Including: provision of mature
productive biological assets
Provision of petrol assets
Provision of intangible assets 0.00 0.00 0.00
Provision of goodwill
114
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Amount reduced this period
As of 31 December Amount provided this
Item As of 30 June 2012
2011 period
Reversal Written off
Provision of others
Total 68,045,713.75 2,026,966.88 968,724.13 69,103,956.50
28. Other non-current assets
Unit: Yuan
Item As of 31 December 2011 As of 30 June 2012
Total
Description of other non- current assets: none
Lists of all assets with restriction of certificate of title or use right
Item As of 30 June 2012 Reasons for restriction of certificate of title or use right
Used to guarantee the assets
Real estate 41,435,764.22 For loan security
Land 4,521,539.40 For loan security
Others causes ownership restrictions assets
Total 45,957,303.62
29. Short-term loans
(1) Short-term loans classified by listed below:
Item As of 30 June 2012 As of 31 December 2011
Pledged loan 110,000,000.00 40,000,000.00
115
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item As of 30 June 2012 As of 31 December 2011
Loan in mortgage 42,300,000.00 52,500,000.00
Guaranteed loan 384,000,000.00 404,000,000.00
Loan in credit 45,000,000.00 15,000,000.00
Total 581,300,000.00 511,500,000.00
Notes:
1. The parent company's China Putian Information Industry Group Company vouch for the company opens SPDB RMB120,000,000.00 Yuan bank
acceptance, provide RMB40,000,000.00 Yuan, the company provides guaranty RMB 80,000,000.00 Yuan deposit as the pledge.
2. The final controller China Putian Corporation Group guaranteed the borrowing of RMB 230,000,000.00 Yuan, including RMB 180,000,000.00
Yuan from Bank of Communications Co., Ltd., Yuhua Branch; RMB 50,000,000.00 Yuan from Bank of Hua Xia Co., Ltd. Nanjing Branch.
3. The parent company China Putian Company Ltd. guaranteed the borrowing of RMB 74,000,000.00 Yuan, including RMB 74,000,000.00
Shanghai Pudong Development Bank, Nanjing Branch.
4. Fiduciary loan: the company has acquired fiduciary loan RMB 15,000,000.00 Yuan from Ningbo Bank;
5. The company vouches RMB 60,000,000.00 Yuan in Minsheng Bank, include RMB 30,000,000.00 Yuan deposit and RMB 30,000,000.00 Yuan as
credit guarantee;
6. The company guaranteed the borrowing of RMB 20,000,000.00 Yuan for Nanjing Putian Telege Cable Co., Ltd. and the borrowing of RMB
20,000,000.00 Yuan for Nanjing Southern Telecommunications Company Ltd. The subsidiaries Nanjing Putian Telege Cable Co., Ltd. mortgaged its
real estate for loan of RMB 30,000,000.00 Yuan and Nanjing Mennekes Electric Appliances Co., Ltd. mortgaged its real estate for loan of
RMB12,300,000.00 Yuan.
(2) Due to outstanding short-term borrowings
Unit: Yuan
Reason due to
Loan units Loan amount Lending rates Use of loan funds outstanding short-term Expected repayment period
borrowings
Total 0.00 -- -- -- --
Repay amount is 0.00Yuan after balance sheet date.
Description of short-term borrowings, including the maturity of short-term borrowings is to roll the description rollover conditions, new maturity:
none.
116
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
30. Trading financial liabilities
Unit: Yuan
Item Fair value at 30 June 2012 Fair value at 31 December 2011
Trading bonds issued
Financial liabilities designated at fair value through
profit or loss
Derivative financial liabilities
Other financial liabilities
Total 0.00 0.00
31. Notes payable
Item As of 30 June 2012 As of 31 December 2011
Bank acceptance bills 29,292,044.36
Commercial acceptance bills 990,209.75 262,091.29
Total 30,282,254.11 262,091.29
Notes: Notes payable closing balance next accounting periods expire the amount of the RMB30,282,254.11 Yuan.
32. Accounts payable
(1) Analysis of aging
Item As of 30 June 2012 As of 31 December 2011
Within 1 year 838,622,356.52 816,849,533.95
1-2 years 206,924,224.00 84,378,995.05
2-3 years 14,654,470.24 921,377.78
over 3 years 4,320,767.11 4,601,258.12
Total 1,064,521,817.87 906,751,164.90
117
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(2) Accounts payable to shareholders holding 5% or above voting shares of the Company
√ Applicable □ Not applicable
Unit: Yuan
Name As of 30 June 2012 As of 31 December 2011
China Putian Co., Ltd 4,029,840.00 0.00
Total 4,029,840.00 0.00
Significant amounts of payables aged over 1 year: none.
33. Advances from customers
(1) Analysis of aging
As of 30 June 2012 As of 31 December 2011
Item
Amount Percentage (%) Amount Percentage (%)
Within 1 year 51,761,205.50 71.27 78,720,946.19 89.70
1-2 years 15,586,519.52 21.46 6,497,996.62 7.40
2-3 years 2,868,157.17 3.95 1,693,725.84 1.93
over 3 years 2,410,419.74 3.32 850,661.71 0.97
Total 72,626,301.93 100.00 87,763,330.36 100.00
(2) Accounts received in advance from shareholders holding 5% or above voting shares of the company, as well as
that of related parties.
√ Applicable □ Not applicable
Unit: Yuan
Name As of 30 June 2012 As of 31 December 2011
China Putian Co., Ltd 9,088,835.40 8,158,434.00
Total 9,088,835.40 8,158,434.00
Significant amounts of payables aged over 1 year: none.
118
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
34. Accrued payroll
As of 31 December Increase Decrease
Item As of 30 June 2012
2011 during the period during the period
Wages, bonuses and allowance 1,761,051.45 53,732,465.05 53,732,465.05 1,761,051.45
Welfare expense 6,327,864.75 6,083,549.77 244,314.98
Social insurance charges 17,018,464.45 16,895,665.12 122,799.33
Including: Medical insurance 5,022,242.96 5,022,242.96
Basic endowment insurance 9,777,042.97 9,668,181.61 108,861.36
Unemployment insurance 1,120,912.24 1,106,974.27 13,937.97
Work injury insurance 208,970.86 208,970.86
Maternity insurance 302,522.86 302,522.86
Annuity 586,772.56 586,772.56
Housing fund 8,875,087.61 4,057,212.91 4,029,409.39 8,902,891.13
Compensation for cancellation of
15,148.00 15,148.00
labor relationship
Others 4,278,121.53 2,113,976.20 1,666,582.00 4,725,515.73
Including: labor union expenditure 1,043,292.68 986,270.51 566,305.66 1,463,257.53
Employee education expenses 3,234,828.85 1,127,705.69 1,100,276.34 3,262,258.20
Total 14,914,260.59 83,265,131.36 82,422,819.33 15,756,572.62
Notes:
1. Deal with accrued payroll including labor union expenditure and employee education expenses for the amount of RMB 4,725,515.73 Yuan,
non-monetary welfare is RMB 0.00 Yuan, for the cancellation of labor relationship to the amount of compensation for RMB0.00 Yuan.
2. Payroll at 18 monthly.
119
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
35. Taxes payable
Item As of 30 June 2012 As of 31 December 2011 Note
Value-added tax -4,381,092.32 3,620,594.09 17%
Business tax 193,479.91 564,068.54 3%,5%
Consumption tax 714,521.16
Urban maintenance and construction tax -69,752.45 1,527,642.55 7% of the turnover tax
Corporate income tax 1,414,362.78 8,663,364.98
Land use tax 95,374.60
Individual Income Tax 627,760.28 309,781.17
Education surcharge -6,241.06 873,467.52 3%、2%of the turnover tax
Stamp Tax 5,654.00 4,743.41
Local educational expenses to add 210,273.71
Total -1,405,933.10 15,773,935.97
Taxes payable instructions, the local tax authorities agreed taxable income mutual swap between branch, describe of the tax calculations process:
none.
36. Interest payable
Unit: Yuan
Item As of 30 June 2012 As of 31 December 2011
Interest on long-term loans installments interest payment of
principal at maturity date
Interest on corporate bonds
Interest payable on short-term borrowings
Total
120
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Interest payable instructions: none.
37. Dividends payable
Unit: Yuan
Unpaid reasons more than one
Item As of 30 June 2012
As of 31 December 2011 year
Shanghai Linyan Telecommunications Technolgy
1,000,000.00
Company Limited
Jiangsu Huabang Electrical & Mechanical
175,330.20
Equipment Project Company Limited
Ningbo Yinzhou Xinxing Plastic Electrical
175,330.20
Appliance Factory
Yuyao Guochang Electric Appliance Company 292,217.01
Nanjing Yongxin Electric Supporting Company
175,330.20
Limited
Jinjiang Huasheng Telecommunications
58,443.40
Equipment Company Limited
Jiangdu Yate Power Communications Plastic
292,217.01
Product Company Limited
Zhenjiang Shengtang Optoelectronic Company
175,330.20
Limted
Total 1,000,000.00 1,344,198.22
Dividends payable instructions: none.
38. Other payables
(1) Analysis of aging
As of 30 June 2012 As of 31 December 2011
Item Percentage
Amount Percentage (%) Amount
(%)
Within 1 year 18,675,305.11 44.48 41,027,629.13 76.77
1-2 years 17,091,049.11 40.70 6,008,671.52 11.24
121
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
As of 30 June 2012 As of 31 December 2011
Item Percentage
Amount Percentage (%) Amount
(%)
2-3 years 4,619,935.70 11.00 3,995,251.66 7.48
over 3 years 1,602,243.84 3.82 2,411,781.94 4.51
Total 41,988,533.76 100.00 53,443,334.25 100.00
(2) Other payables to shareholders holding 5% or above voting shares of the company, as well as that of related
parties.
□ Applicable √ Not applicable
(3) Instructions of large amount other payables aged over 1 year
Received risk of mortgage payment RMB 862,339.94 Yuan, the aging over three years, the reason for unsettled is still in the contract period.
(4) Explain for large amount other payables
None
39. Accrued liabilities
Unit: Yuan
Item As of 31 December 2011 Increase during the period Decrease during the period As of 30 June 2012
Guarantees provided
Pending litigation
Product quality assurance
Restructuring obligations
Termination benefits
Loss contract to be executed
Other
Total 0.00 0.00
Accrued liabilities instructions: none.
122
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
40. Non-current liabilities due within one year
(1)
Unit: Yuan
Item As of 30 June 2012 As of 31 December 2011
Long-term borrowings due within one year
Bonds payable due within one year
Long-term payables due within one year
Total
(2) Long-term borrowings due within one year
Long-term borrowings due within one year
Unit: Yuan
Item As of 30 June 2012 As of 31 December 2011
Pledged loan
Secured loans
Guaranteed loan
Credit loan
Total
Long-term borrowings due within one year belong the amount of overdue loans obtained extension: none.
Top five of long-term borrowings due within one year
Unit: Yuan
As of 30 June 2012 As of 31 December 2011
Loan starting Loan ending Interest rate
Loan units Currency
date date (%) Foreign Foreign
RMB RMB
currency currency
Total -- -- -- -- -- --
Overdue loans in the long-term loans due within one year:
Unit: Yuan
Reason due to
Expected repayment
Loan units Loan amount Lending rates Use of loan funds outstanding short-term
period
borrowings
Total -- -- -- --
Repay amount after balance sheet date is 0.00Yuan.
123
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Description of the long-term borrowings due within one year: none.
(3) Bonds payable due within one year
Unit: Yuan
Interest Current Accrued
Nominal The term of Current Amount at 30
Bond name Release Date Issue amount payable at accrued interest at the
value the bonds Interest paid June 2012
the beginning interest end
Description of the bonds payable due within one year: none.
(4) Long-term payables due within one year
Unit: Yuan
Amount at 30 June Borrowing
Name Time limit Initial amount Interest rate ( % ) Accrued interest
2012 conditions
Description of the long-term payables due within one year: none.
41. Other current liabilities
Unit: Yuan
Item As of 30 June 2012 As of 31 December 2011
Total
Other current liabilities instructions: none.
42. Long-term borrowings
(1) Long-term loans classification
Unit: Yuan
Item As of 30 June 2012 As of 31 December 2011
Pledged loan
Secured loans
Guaranteed loan
Credit loan
Total
124
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Long-term borrowings instructions: none.
(2) Top five long-term loans
Unit: Yuan
As of 30 June 2012 As of 31 December 2011
Loan starting Loan ending Interest rate
Loan units Currency
date date (%) Foreign Foreign
RMB RMB
currency currency
Total -- -- -- -- -- --
Long-term loans due to the overdue loan extension to form long-term borrowings, should disclose the conditions of extension, principal, interest and
expected repayment arrangements: none.
43. Bonds payable
Unit: Yuan
Interest Current Accrued
Nominal The term of Current Amount at 30
Bond name Release Date Issue amount payable at accrued interest at the
value the bonds Interest paid June 2012
the beginning interest end
Bonds payable instructions, including the conditions of the conversion of the convertible bonds and conversion date: none.
44. Long-term payables
(1) The top five long - term payables
Unit: Yuan
Amount at 30 June Borrowing
Name Time limit Initial amount Interest rate ( % ) Accrued interest
2012 conditions
(2) Long-term payables in the finance lease payables details
Unit: Yuan
As of 30 June 2012 As of 31 December 2011
Name
Foreign currency RMB Foreign currency RMB
Total
Guarantee provided by an independent third party for the company to finance leases is 0.00Yuan.
125
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Long-term payables instructions: none.
45. Special accounts payable
Unit: Yuan
As of 31 December Increase during the Decrease during
Item As of 30 June 2012 Notes
2011 period the period
Total --
Special accounts payable instructions: none.
46. Other non-current liabilities
Unit: Yuan
Item As of 30 June 2012 As of 31 December 2011
Total
Other non-current liabilities description, government grants acquired related to various assets and income during the reporting period, amount at
the end of the period: none.
47. Share capital
Increases(+) or decreases(-) in current year
As of 31 December Shares
Item Issuance As of 30 June 2012
2011 Bonus transferred
of new Others Subtotal
issue from capital
shares
reserve
Total number of shares 215,000,000.00 215,000,000.00
48. Treasury shares
None
126
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
49. Special reserves
None
50. Capital reserve
As of 31 December Increase
Decrease
Item 2011 during the year As of 30 June 2012
during the year
Share capital premium 139,592,332.04 139,592,332.04
Other capital reserves 45,782,201.81 45,782,201.81
Total 185,374,533.85 185,374,533.85
51. Surplus reserve
As of 31 December Increase Decrease
Item As of 30 June 2012
2011 during the year during the year
Statutory surplus reserves 589,559.77 589,559.77
Discretionary surplus reserve
Reserve fund
Venture expansion fund
Other
Total 589,559.77 589,559.77
52. General risk provisions
None
127
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
53. Undistributed profit
Proportion of Extraction or
Item Amount
Distribution
Undistributed profit at the end of last year before adjustments -24,923,018.93 ——
The sum of undistributed profit at the beginning of the adjustment year
——
(increase +, reduction -)
Undistributed profit at the beginning of a year after adjustment -24,923,018.93 ——
Add: Net profit attributable to the owner of the parent company this year 6,038,203.37 ——
Less: Extracted statutory surplus reserves
Extracted discretional surplus reserves
Extracted provision of general risk
Dividend payable to ordinary shares
Dividends for ordinary shares transferred into capitals
Undistributed profit at the ending of period -18,884,815.56
54. Operating revenues and costs
(1) Operating revenues/costs
Operating revenues
Item For 30 June 2012 For 30 June 2011
Main operating revenue 1,339,172,102.91 1,153,031,389.80
Other operating revenue 10,791,079.91 14,035,327.67
Operating costs 1,167,040,803.45 1,016,732,478.71
128
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(2) Main Business (by industry))
For 30 June 2012 For 30 June 2011
Item
Main operating revenue Main operating cost Main operating revenue Main operating cost
Communications equipment
1,287,158,567.25 1,119,838,957.60 1,153,031,389.80 1,009,021,574.66
manufacturing industry
Electrical equipment
52,013,535.66 39,522,573.72
manufacturing industry
Total 1,339,172,102.91 1,159,361,531.32 1,153,031,389.80 1,009,021,574.66
(3) Main Business (by products)
For 30 June 2012 For 30 June 2011
Item
Main operating revenue Main operating cost Main operating revenue Main operating cost
Communication products 1,287,158,567.25 1,119,838,957.60 1,153,031,389.80 1,009,021,574.66
Electrical products 52,013,535.66 39,522,573.72
Total 1,339,172,102.91 1,159,361,531.32 1,153,031,389.80 1,009,021,574.66
(4) Main Business (by regions)
For 30 June 2012 For 30 June 2011
Name of Region
Main operating revenue Main operating cost Main operating revenue Main operating cost
Domestic market 1,335,490,703.78 1,156,726,099.11 1,146,943,846.73 1,003,244,432.20
Oversea market 3,681,399.13 2,635,432.21 6,087,543.07 5,777,142.46
Total 1,339,172,102.91 1,159,361,531.32 1,153,031,389.80 1,009,021,574.66
(5) The amount of operating revenues received from the top 5 customers this year
Proportion taking in total operating
Item Operating revenues
income of the Company (%)
129
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Proportion taking in total operating
Item Operating revenues
income of the Company (%)
China Telecom Co., Ltd., Jiangsu Branch 437,521,662.45 32.41
China Telecom Co., Ltd., Shanghai Branch 52,688,369.85 3.90
Beijing Zhizhen Vision Technology Co., 32,426,617.95 2.40
China Tietong Group Co., Ltd. Jiangsu Branch 30,591,421.21 2.27
Chengdu Renyuan Information Technology Co., Ltd. 26,748,796.97 1.98
Total 579,976,868.43 42.96
55. Contract revenue
□ Applicable √ Not applicable
56. Sales tax and extra charges
Item Rate For 30 June 2012 For 30 June 2011
Business tax 3%-5% 1,354,276.74 1,742,522.42
Urban maintenance and
7% 1,711,522.03 1,005,416.55
construction tax
Education surcharge 3%、2% 1,208,463.86 765,644.07
Resource tax
Others 11,503.28 5,978.91
Total 4,285,765.91 3,519,561.95
57. Fair value movement gain
Unit: Yuan
130
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Source of fair value gains For 30 June 2012 For 30 June 2011
Trading financial assets
Include:the changes in fair value of derivative financial
instruments gains
Fair value of investment real estate
Other
Trading financial liabilities
Total
58. Investment income
(1) Details of Investment Income
Item For 30 June 2012 For 30 June 2011
Long-term equity investment income by cost method 83,700.00
Long-term equity investment income by equity method 1,462,045.66 2,770,283.65
Income from disposal of long-term equity investment
Investment income from period of holding tradable financial assets
Investment income from period of holding hold-to-maturity investment
Income from investment in holding of financial assets available for sale, etc
Income from investment in disposal of financial assets available for sale, etc.
Investment income from disposal of hold-to-maturity investment
Investment income from disposal of financial assets available for sale
Others
Total 1,462,045.66 2,853,983.65
(2) Long-term equity investment income by cost method
131
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Investee For 30 June 2012 For 30 June 2011 Reasons for movement
Nanjing Yuhua Galvanization Factory 83,700.00 No dividends received this period
Total 83,700.00
(3)Long-term equity investment income by equity method
Investee For 30 June 2012 For 30 June 2011 Reasons for movement
Nanjing Mennekes Electric Appliances Ltd. 2,322,981.92 Cost accounting method
Nanjing Prachanda Live Optical Network Co., Ltd 1,249,537.60 -25,297.62 Business fluctuations
Nanjing Putian Datang Information and Electric Company Business fluctuations
134,863.31 12,337.19
Ltd.
Nanjing Putian Zhongyou Telecommunication Co., Ltd. -17,969.72 13,050.01 Business fluctuations
Putian High Technology Industry Co. , Ltd. 82,092.20 91,124.85 Business fluctuations
Nanjing Putian Telege Cable Co., Ltd. 13,522.27 356,087.30 Business fluctuations
Total 1,462,045.66 2,770,283.65
During the reporting period, no significant repatriation of investment income restrictions
59. Impairment of assets
Items For 30 June 2012 For 30 June 2011
Bad debt losses 1,999,859.94 1,999,655.74
Inventory obsolescence loss
Available for sale financial assets impairment loss
Held-to- maturity investments impairment loss
Long-term equity investment impairment loss
Investment real estate impairment losses
Fixed asset impairment losses
Construction materials impairment losses
132
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Construction in progress impairment loss
Productive biological asset impairment losses
Oil and gas assets and impairment losses
Intangible assets impairment losses
Goodwill impairment losses
Others
Total 1,999,859.94 1,999,655.74
60. Non-operating income
(1) Details of Non-operating Income
For 30 June 2012 For 30 June 2011
Item Included in the current Included in the current
Amount profits and losses of the Amount profits and losses of the
decriminalizes amount decriminalizes amount
Gains from disposal of non-current
356,787.74 356,787.74
assets
Include: Gains from disposal of fixed
356,787.74 356,787.74
assets
Gains from disposal of Intangible
assets
Gains from debt restructuring 1,030.00 1,030.00
Government grants 779,939.18 779,939.18 1,305,540.73 1,305,540.73
Others 68,700.00 68,700.00 32,800.69 32,800.69
Total 1,206,456.92 1,206,456.92 1,338,341.42 1,338,341.42
(2) Details of Government Subsidy
Item For 30 June 2012 For 30 June 2011 Note
Refund of VAT 420,000.19 440,416.68
The grandson Nanjing Telecommunication Factory,
133
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item For 30 June 2012 For 30 June 2011 Note
seven branch has the VAT preferential policies of
refunding ,due to being welfare production
enterprises
The subsidiary Nanjing Putian Telecommunication
Technology Co., Ltd has the VAT preferential policies
Refund of VAT 120,858.52 295,426.05
of refunding upon collection once rate in excess of
3%, due to being manufacture of software
The company to get QinHuaiOu business bureau
Service outsourcing rewards 239,080.47
service outsourcing rewards
The company subsidiary Nanjing South
Telecommunications Ltd. made Nanjing hi-tech
Finance subsidy 26,698.00
industry development zone administration committee
bureau subsidies
The company to get service outsourcing talents
Subsidy income 2,500.00
training support fund
Subsidiary company Nanjing Putian
Telecommunication Technology Co., Ltd. acquires
Subsidy income 40,500.00
Nanjing municipal government funding and rewards
software products.
Small and medium-sized enterprise The company subsidiary Nanjing Putian Telege
development JiangNing bureau of 500,000.00 Intelligent Building Ltd. obtained enterprise
technology-based funds development fund.
Total 779,939.18 1,305,540.73
61. Non-operating expense
For 30 June 2012 For 30 June 2011
Item Included in the current Included in the current
Amount profits and losses of the Amount profits and losses of the
decriminalizes amount decriminalizes amount
134
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
For 30 June 2012 For 30 June 2011
Item Included in the current Included in the current
Amount profits and losses of the Amount profits and losses of the
decriminalizes amount decriminalizes amount
Loss from disposal of non-current
42,279.87 42,279.87
assets
Include: loss from disposal of fixed
42,279.87 42,279.87
assets
Loss from debt restructuring
External donation 20,000.00 20,000.00
Others 340,981.40 340,981.40 37,372.34 37,372.34
Total 383,261.27 383,261.27 57,372.34 57,372.34
62. Income tax
Item For 30 June 2012 For 30 June 2011
Current income tax expense calculated to tax law and relevant provisions 2,022,892.44 2,763,884.93
Deferred income tax charges
Total 2,022,892.44 2,763,884.93
63. Calculation of basic earnings per share and diluted earnings per share
The company calculate basic earnings per share and diluted earnings per share in accordance with < No.9 the company's Information Disclosure
Requirement of calculation of basic earnings per share and rate of return on net asset applied by Entities of Public offering of securities (revised in
2010) > issued by China securities regulatory commission.( China Securities Regulatory Commission Announcement [2010] No. 2)< Public offering
of securities of the company's Information Disclosure Explanatory Notice No. 1 - Non-recurrent gains and losses (2008).( China Securities
Regulatory Commission Announcement [2008] No. 43)
Item Code For 30 June 2012 For 30 June 2011
135
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Net profit attributable to ordinary shareholders of parent company(Ⅰ) P0 6,038,203.37 7,654,146.53
Net profit attributable to the company's ordinary shareholders after
P0 5,763,929.27 7,017,683.63
deducting non-recurring gains and losses(Ⅱ)
Amount of common stock at the year-beginning S0 215,000,000.00 215,000,000.00
Increase of amount of common stock owing to capital reserve transferred to share
S1
capital or distribution of stock dividend
Increase of amount of common stock owing to issue of bonds newly or bonds
Si
issued to be transfer to common stock
Decrease of amount of common stock due to purchase-back common stock ,etc Sj
Decrease of amount of common stock in the reporting period Sk
Amount of months in the reporting period M0 6 6
Accumulated months since the second month when increase of amount of common
Mi
stock
Accumulated months since the second month when decrease of amount of
Mj
common stock
Average weighted amount of common stock outstanding S 215,000,000.00 215,000,000.00
Basic earnings per share(Ⅰ) 0.028 0.04
Basic earnings per share(Ⅱ) 0.027 0.03
Net profit attributable to ordinary shareholders of parent company after
P1 6,038,203.37 7,654,146.53
adjustment(Ⅰ)
Net profit attributable to the company's ordinary shareholders after
P1 5,763,929.27 7,017,683.63
deducting non-recurring gains and losses after adjustment(Ⅱ)
Increase amount of average weighted of common stock owing to realization of
warrants, stock options and convertible bonds
Average weighted amount of common stock outstanding after consideration of 215,000,000.00 215,000,000.00
136
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
diluted affect
Diluted earnings per share(Ⅰ) 0.028 0.04
Diluted earnings per share(Ⅱ) 0.027 0.03
(1) Basic earnings per share
Basic earnings per share = P0÷ S
S= S0＋S1＋Si×Mi÷M0– Sj×Mj÷M0-Sk
Where;P0 means net profit attributable to ordinary shareholders of parent company or net profit attributable to the company's ordinary shareholders
after deducting non-recurring gains and losses; S means average weighted amount of common stock outstanding; S0 means amount of common
stock at the year-beginning; S1 means increase of amount of common stock owing to capital reserve transferred to share capital or distribution of
stock dividend; Si means increase of amount of common stock owing to issue of bonds newly or bonds issued to be transfer to common stock; Sj
means decrease of amount of common stock due to purchase-back common stock ,etc; Sk means decrease of amount of common stock in the
reporting period; M0 means amount of months in the reporting period; Mi means accumulated months since the second month when increase of
amount of common stock; Mj means accumulated months since the second month when decrease of amount of common stock;
(2) Diluted earnings per share
Diluted earnings per share=P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ Increase amount of average weighted of common stock owing to realization
of warrants, stock options and convertible bonds.
Where: P1 means net profit attributable to ordinary shareholders of parent company or net profit attributable to the company's ordinary
shareholders after deducting non-recurring gains and losses after adjustment in consideration of the effect of dilutive potential ordinary share,
regulated by accounting criteria for enterprises in china or other related regulations. When calculation of diluted earnings per share, all effects of
Net profit attributable to the company's ordinary shareholders after deducting non-recurring gains and losses after adjustment and average
weighted amount of common stock outstanding, associated with dilutive potential ordinary share, calculating of diluted earnings per share to the
degree that is minimum of EPS, according to their degree of descending order of diluted earnings per share referred.
64. Other comprehensive income
Item For 30 June 2012 For 30 June 2011
1. gains (losses) arising from financial assets available for sale
Less: affect of income tax arising from financial assets
available for sale
Net, written in other comprehensive income in previous period and carried forward to gains and
losses in current period
137
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item For 30 June 2012 For 30 June 2011
Subtotal
2. Share in other comprehensive income of invested units by
equity method
Less: affect of income tax arising from Share in other
comprehensive income of invested units by equity method
Net, written in other comprehensive income in previous
period and carried forward to gains and losses in current period
Subtotal
3. gains (losses) arising from cash flow hedge instruments
Less: affect of income tax arising from cash flow hedge
instruments
Net, written in other comprehensive income in previous
period and carried forward to gains and losses in current period
Adjustment, converted to initial reorganization amount
of projects in hedge
Subtotal
4. Conversion difference arising from foreign currency financial
-93,168.18 282,079.96
statement
Less: net, carried forward to gains and losses in current
period after disposing overseas operation
Subtotal -93,168.18 282,079.96
5. Others
138
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item For 30 June 2012 For 30 June 2011
Less: affect of income tax arising from others which are
written in other comprehensive income
Net, others written in other comprehensive income in previous period and carried forward to
gains and losses in current period
Subtotal
Total -93,168.18 282,079.96
65. Item description in the statement of cash flow
(1) Other cash receipts relating to operating activities
Item For 30 June 2012 For 30 June 2011
Interest income 1,300,836.89 1,077,938.89
Temporary receipts and repayment of temporary payment 68,093,141.77 11,658,400.27
Subsidy income 68,700.00 569,698.00
Others
Total 69,462,678.66 13,306,037.16
(2) Other cash payments relating to operating activities
Item For 30 June 2012 For 30 June 2011
Temporary payment 7,046,658.31 20,612,132.83
Various expenses 66,096,747.20 58,880,919.11
Others 222,755.80 275,463.75
Total 73,366,161.31 79,768,515.69
139
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(3) Cash received relating to financing activities
Item For 30 June 2012 For 30 June 2011
Bank acceptances margin 80,000,000.00
Total 80,000,000.00
66. Supplementary information about consolidated statement of cash flows
(1) Supplementary information about consolidated statement of cash flows
Item For 30 June 2012 For 30 June 2011
1、Adjustment of net profit into operation activity cash flow:
Net profit 12,343,535.18 14,749,678.10
Add: provision for depreciation of assets 1,999,859.94 1,999,655.74
Depreciation of fixed assets, consumption of oil gas assets and depreciation of
4,675,046.17 4,675,046.17
productive biological assets
Amortization of intangible assets 714,154.29 646,907.99
Amortization of long-term prepayments -
Loss from disposal of fixed assets, intangible assets and other long term assets (gain
-275,457.62
is listed with “-”)
Loss from discarding fixed assets as useless (gain is listed with “-”) -
Loss from change of fair value(gain is listed with “-”) -
Financial expense (gain is listed with “-”) 18,020,879.16 12,889,244.53
Investment loss (gain is listed with “-”) -1,462,045.66 -2,853,983.65
Decrease of deferred income tax assets (increase is listed with“-”) -
Increase of deferred income tax liabilities (decrease is listed with “-”) -
140
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item For 30 June 2012 For 30 June 2011
Decrease of inventories (increase is listed with “-”) -43,288,617.28 -131,887,849.14
Decrease of operational accounts receivable (increase is listed with “-”) -158,004,011.54 -255,557,349.34
Increase of operational accounts payable (decrease is listed with “-”) 137,067,092.81 231,881,566.87
Others -
Net cash flow arising from operation activities -28,209,564.55 -123,457,082.73
2. Significant investment and financing activities with no reference to cash collection
and payment:
Debt convert to capital
Convertible bond due within one year
Fixed assets leased in by financing
3. Net change in cash and cash equivalent:
Balance of cash at period-end 301,632,757.53 210,428,237.28
Less: Balance of cash at period-begin 310,453,749.89 291,447,011.87
Add: Balance of cash equivalent at period-end -
Less: Balance of cash equivalent at period-begin -
Net increase in cash and cash equivalent -8,820,992.36 -81,018,774.59
(2) Information about acquisition or disposal of subsidiaries and other business units
Unit: Yuan
Supplementary information For 30 June 2012 For 30 June 2011
I. Information about acquisition of the subsidiaries and other business units -- --
Consideration of acquiring subsidiaries and other business units
Cash and cash equivalents paid for the acquisition of subsidiaries and other
business units
141
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Less: Cash and cash equivalents controlled by subsidiaries and other business
units
Net cash paid for the acquisition of subsidiaries and other business units
Net assets of acquired subsidiaries 0.00 0.00
Current assets
Non-current assets
Current liabilities
Non-current liabilities
I. Information about disposal of the subsidiaries and other business units -- --
Consideration of disposal subsidiaries and other business units
Cash and cash equivalents received from the acquisition of subsidiaries and other
business units
Less: Cash and cash equivalents controlled by subsidiaries and other
business units
Net cash received from the disposal of subsidiaries and other business units
Net assets of disposaled subsidiaries 0.00 0.00
Current assets
Non-current assets
Current liabilities
Non-current liabilities
(3) Cash and cash equivalent
Item As of 30 June 2012 As of 31 December 2011
Cash 301,632,757.53 310,453,749.89
Cash in hand 49,555.08 51,295.27
May at any time is used to pay the bank deposit 190,570,608.79 310,402,454.62
May at any time for the payment of the other monetary funds 111,012,593.66
Can be used for the storage of the central bank money to pay
Deposit money of payment
Dismantle put trade payment
142
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item As of 30 June 2012 As of 31 December 2011
Cash equivalent
Three months due debt investments
Cash and cash equivalent at the year end 301,632,757.53 310,453,749.89
67. Notes to Statement of changes in equity
None
VIII Accounting treatment of asset securitization business
1. The asset securitization trade arrangements and accounting treatment, bankruptcy isolation terms
2. The company has no control but essentially bear the risk of special purpose subject situation
Unit: Yuan
Name Total asset Total liability Net assets Income Net profit Notes
IX Related parties and related transaction
1. Condition of parent company
Name of the parent Relation Legal Business Registration Capital
Type of entity Registered address
company representative nature (unit:RMB’0000
No. 2 Tudi 2 Road,
China Putian Co., Parent Zhongguan village information
State-owned Xing Wei 308,694.00
Ltd. Company economy zone, industry
Haidian district, Beijing
(Continued)
143
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
The proportion of voting rights The company's
Name of the parent Rate of Share Held between Parent Organization
between parent company and the Ultimate
company Company and the Company (%) code
company (%) controlling party
China Putian Co., China Putian
53.49 53.49 71093155-5
Ltd. Corporation
2. Condition of subsidiaries
Type of Legal
Name of the companies Type of entity Registration Business Nature
subsidiaries Representative
Nanjing Southern Telecommunications Limited Sales telecommunication
Trading Nanjing Hong Wang
Co., Ltd. company products
Nanjing Bada Telecommunications Limited Manufacture of
Manufacture Nanjing Jin Qiao
Co., Ltd. company telecommunications
Manufacture
Nanjing Putian Information Technology Limited
Manufacture Nanjing Yongshu Lu and sale of
Co., Ltd. company
telecommunications
Manufacture
Nanjing Putian Telege Intelligent Limited
Manufacture Nanjing Baosun Fu and sale of
Building Ltd. company
telecommunications
Putian Telecommunications (Hong company limited Sale of
Manufacture HongKong Liang Sun
Kong) Co., Ltd. by shares telecommunications
Web-based electronic
Beijing Picom Telecommunications Limited
Manufacture Beijing Junhai Lu products, digital
Equipment Co., Ltd. company
transmission equipment
Manufacture
Nanjing Putian WongShi Limited
Manufacture Nanjing Hanbin Jiang and sale of
Telecommunications Co., Ltd. company
telecommunications
Nanjing Putian Changle Limited Manufacture
Manufacture Nanjing Qiang Wang
Telecommunications Equipment Co., company
and sale of
144
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Type of Legal
Name of the companies Type of entity Registration Business Nature
subsidiaries Representative
Ltd. telecommunications
Manufacture
Limited
Nanjing Putian Network Company Ltd. Manufacture Nanjing Yingqian Guan and sale of
company
telecommunications
Manufacture
Nanjing Putian Telecommunication Limited
Manufacture Nanjing Chuanxi Liu and sale of
Technology Co., Ltd. company
telecommunications
Nanjing Mennekes Electric Appliances Limited Product and sales
Manufacture Nanjing Hong Wang
Ltd. company socket for industrial use
(Continued)
The proportion of voting
Rate of Share held
Registration Capital rights between parent
Name of the companies between parent company Organization code
(unit: Wan Yuan) company and the
and the Company (%)
company (%)
Nanjing Southern Telecommunications
3,420.50 98.24 98.24 13492047-8
Company Limited
Nanjing Bada Telecommunications
Co., 1,130.14 60.00 60.00 13554048-5
Ltd.
Nanjing Putian Information Technology
1,400.00 99.98 99.98 13498233-7
Company Ltd.
Nanjing Putian Intelligent Building Ltd 1,200.00 45.77 45.77 72172045-4
Putian Telecommunications (Hong
Kong) HK 200.00 90.00 90.00 #61770414
Co., Ltd.
Beijing Picom Telecommunications
USD 50.00 51.00 51.00 717741092
Equipment Ltd.
145
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
The proportion of voting
Rate of Share held
Registration Capital rights between parent
Name of the companies between parent company Organization code
(unit: Wan Yuan) company and the
and the Company (%)
company (%)
Nanjing Putian WongShi
USD 1,090.00 99.42 99.42 71093784-2
Telecommunications Co., Ltd.
Nanjing Putian Changle
Telecommunications Equipment Co., 1,000.00 50.70 50.70 13554526-X
Ltd
Nanjing Putian Network Company Ltd 1,000.00 78.00 78.00 74236858-4
Nanjing Putian Telecommunication
475.00 70.00 70.00 13513422-5
Technology Co., Ltd
Nanjing Mennekes Electric Appliances
USD 520.00 75.00 75.00 60895120-X
Ltd.
3. Condition of the joint ventures and associates
Voting
propo Relatio
Proporti rtion nship Orga
Place Total
Legal on of in Total
Invested of Business Registere Curre Total Total net operati Net with nizati
Types perso shareh invest liabili
units registr nature d capital ncy assets assets ng profit
the on
n olding ed ty
ation income
（%） comp compa code
any ny
(%)
Joint
-- -- -- -- -- -- -- -- -- -- -- -- -- -- --
venture
Nanjing Optical
Sino-fo 71,6
Prachanda Hanbi communi 100,84 5555
reign Nanjin 4,000,00 40,7 29,208,4 50,058, 2,499,0 Joint
Live Optical n cation of USD 50.00 50.00 9,265. 3484
joint g 0.00 81.3 84.05 576.74 75.20 venture
Network Jiang productio 42 -X
venture 7
Co., Ltd n
Affiliated -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
146
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
venture
Nanjing Domest Communi
Putian ic cation 12,6
Yaomi 19,408 Affiliate 7770
Datang (limited Nanjin products 5,000,00 83,6 6,725,28 10,123, 337,15
ng CNY 40 40 ,962.5 d 1905
Information liability g productio 0.00 82.2 0.30 201.96 8.28
Yan 0 venture 0
and Electric compa n sales, 0
Co., Ltd. ny) etc
Nanjing Domest Communi
Putian ic cation
360, Affiliate 2497
Zhongyou (limited Nanjin Tiwu products 1,000,00 1,666, 1,305,59 61,538. -59,899
CNY 15 15 555. d 0220
Telecommu liability g Zhao productio 0.00 154.48 8.66 46 .05
82 venture 0
nication compa n sales,
Co., Ltd. ny) etc
Domest Industrial
Putian High ic park
Xiaoc 341,28 374, Affiliate 6673
Technology (limited Nanjin venue 337,548, 340,908, 6,837,2 165,37
heng CNY 49.64 49.64 3,145. 236. d 7288
Industry liability g rental 141.29 909.35 44.95 5.10
Zhang 61 26 venture 1
Co., Ltd. compa manage
ny)） ment etc
4. Other related parties
Company Name Relationship with the company Organization code
Nanjing Putian Swanking Electrical Co., Ltd Controlled by the parent company 724594270
Controlled by controlling shareholder of
Shenzhen Putian Lingyun Electronics Co. Ltd 732050660
the parent company
Shanghai Putian Post And Telecommunications Technology
Controlled by the parent company 607285751
Co., Ltd.
Beijing Great Gragon Information Technology International
Controlled by the parent company 743349502
Co., Ltd.
Chengdu Putian Telecommunications Cable Co., Ltd. Controlled by the parent company 20193968X
Putian Institute of Technology Co., Ltd. Controlled by the parent company 710929105
147
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Company Name Relationship with the company Organization code
Wuhan is Ablaze Putian information technology Co., Ltd. Controlled by the parent company 695345127
5. Related transaction
(1) Purchasing goods, accept services related party transactions
For 30 June 2012
Pricing policy and
Related Parties Related transaction content decision-making Ratio in similar
processes Amount trade
amount %
China Putian Information Industry Co., Ltd. Telecommunications Market Pricing 25,504.27 0.00
Nanjing Putian Datang Information and
Telecommunications Market Pricing 258,274.34 0.02
Electric Co., Ltd.
Nanjing Putian Swanking Electrical Co., Ltd. Telecommunications Market Pricing 719,725.78 0.06
Nanjing Prachanda Live Optical Network
Telecommunications Market Pricing 37,213,349.64 3.20
Co., Ltd.
Wuhan Flames Putian Information
Telecommunications Market Pricing 1,449,358.97 0.12
Technology Co., Ltd.
Nanjing Putian Telecommunications Co. ,
Telecommunications Market Pricing 30,034.19 0.00
Ltd.
Total 39,696,247.19 3.40
For 30 June 2011
Related transaction Pricing policy and
Ratio in
Related Parties decision-making
content processes Amount similar trade
amount %
148
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
China Putian Information Industry Co., Ltd. Telecommunications Market Pricing 10,895,243.68 0.92
Nanjing Prachanda Live Optical Network
Telecommunications Market Pricing 20,148,668.55 1.70
Co., Ltd.
Nanjing Putian Swanking Electrical Co., Ltd Telecommunications Market Pricing 803,037.15 0.07
Total 31,846,949.38 2.69
The sale of goods, providing labor services related transaction
For 30 June 2012
Related transaction Pricing policy and
Ratio in
Related Parties decision-making
content processes Amount similar trade
amount %
China Putian Information Industry Co., Ltd. Telecommunications Market Pricing 49,394,450.80 3.69
Putian Technology Research institute Co.,
Telecommunications Market Pricing 158,119.66 0.01
Ltd.
Nanjing Putian Swanking Electrical Co., Ltd. Other products Market Pricing 4,477.69 0.00
Nanjing Zhongyou Telecommunication Co.,
Telecommunications Market Pricing 70,256.41 0.01
Ltd
Total 49,627,304.56 3.71
For 30 June 2011
Related transaction Pricing policy and
Ratio in
Related Parties decision-making
content processes Amount similar trade
amount %
China Putian Information Industry Co., Ltd. Telecommunications Market Pricing 33,380,033.13 2.86
Shanghai Putian network Co. , Ltd. Telecommunications Market Pricing 1,436,222.74 0.12
149
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Nanjing Putian Datang Information and
Telecommunications Market Pricing 35,170.94 0.00
Electric Co., Ltd.
China Putian Information Industry Group
Telecommunications Market Pricing 82,051.28 0.01
Co.
Nanjing Prachanda Live Optical Network
Telecommunications Market Pricing 77,218.76 0.01
Co., Ltd.
Total 35,010,696.85 3.00
(2) Associated with hosting/ contracting
None
(3)Related leasing
Company rental table
Leased Leased Influence on Influence of
Date start Date for Accordance for
Asset for asset asset the company lease income
Lessor Lessee for termination reorganization of
leasing situation amount by rental
leasing of leasing rental income
income
Company leased table
Leased Leased asset Date for Accordance for Influence on Influence
Asset for Date start for
Lessor Lessee asset amount termination reorganization the company of lease
leasing leasing
situation of leasing of rental fee by rental fee income
Putian High good
Nanjing Putian
Technology Building
Telecommunication 146,926,915.19 2012-01-01 2012-12-31 Market Pricing 5,279,987.37
Industry Co., and land
Co., Ltd.
Ltd.
(4)Related guarantee
Whether the
Amount of Date start for Due date for
Assurance Provider Secured party guarantee is
guarantee guarantee guarantee
carried out
150
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Whether the
Amount of Date start for Due date for
Assurance Provider Secured party guarantee is
guarantee guarantee guarantee
carried out
China Putian Information Industry Nanjing Putian telecommunication Co.,
30,000,000.00 2011-12-22 2012-12-22 No
Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
44,000,000.00 2012-6-12 2013-6-12 No
Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
20,000,000.00 2011-10-28 2012-10-27 No
Group Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
30,000,000.00 2011-11-2 2012-11-1 No
Group Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
20,000,000.00 2011-11-9 2012-11-8 No
Group Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
20,000,000.00 2011-10-9 2012-10-9 No
Group Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
30,000,000.00 2011-10-19 2012-10-18 No
Group Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
30,000,000.00 2011-11-16 2012-11-15 No
Group Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
30,000,000.00 2011-11-28 2012-11-27 No
Group Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
30,000,000.00 2011-12-22 2012-12-22 No
Group Co. Ltd.
China Putian Information Industry Nanjing Putian telecommunication Co.,
20,000,000.00 2012-1-11 2013-1-11 No
Group Co. Ltd.
Nanjing Putian telecommunication Nanjing Putian Telege Intelligent
10,000,000.00 2011-9-16 2012-9-16 No
Co., Ltd. Building Ltd
Nanjing Putian telecommunication Nanjing Putian Telege Intelligent
10,000,000.00 2011-9-28 2012-9-28 No
Co., Ltd. Building Ltd
151
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Whether the
Amount of Date start for Due date for
Assurance Provider Secured party guarantee is
guarantee guarantee guarantee
carried out
Nanjing Putian telecommunication Nanjing Southern Telecommunications
20,000,000.00 2011-12-14 2012-12-13 No
Co., Ltd. Company Limited
(5) Related party lending money
Unit: Yuan
Related party Lending amount Start Date Maturity date Notes
Bank borrowing
Lending
(6) Related parties transfer of asset and debt restructuring
Unit: Yuan
Pricing and the As of 30 June 2012 As of 31 December 2011
Related party Related party
Related party decision-making Proportion Proportion
type transactions Amount Amount
process (%) (%)
(7) Other related transactions
6. Payables and receivables of related parties
(1) The accounts affiliated parties shown in the list below money situation
Item Name of the related parties As of 30 June 2012 As of 31 December 2011
Nanjing Putian Zhongyou Telecommunication
215,472.80 177,072.80
Accounts receivable Co., Ltd.
Accounts receivable China Putian Information Industry Co., Ltd. 30,376,485.40 27,391,490.91
Advance payment China Putian Information Industry Co., Ltd. 7,100,000.00 3,670,000.00
Accounts receivable 208,485.88 208,485.88
Chengdu Putian Telecommunications Cable
152
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item Name of the related parties As of 30 June 2012 As of 31 December 2011
Co., Ltd.
Accounts receivable Shanghai Putian Youtong Technology Co., Ltd. 13,341,700.00 13,554,048.73
Nanjing Putian Datang information electronic
8,600.00 4,818.83
Accounts receivable Co., Ltd
Beijing Picom Telecommunications Equipment
28,912,122.71 28,912,122.71
Other receivables Co., Ltd
Nanjing Prachanda Live Optical Network Co.,
14,372.07
Accounts receivable Ltd.
Accounts receivable Putian Technology Research institute Co., Ltd. 185,000.00
(2) The cope with affiliated parties shown in the list below money situation
Item Name of the related parties As of 30 June 2012 As of 31 December 2011
Other payables Putian High Technology Industry Co. , Ltd. 253,350.12 1,020,353.45
Accounts payable China Putian Information Industry Co., Ltd. 4,029,840.00
Receipts in advance China Putian Information Industry Co., Ltd. 9,088,835.40
Other payables Nanjing Putian Datang information electronic Co., Ltd 47,790.00 47,790.00
Accounts payable Nanjing Putian Datang information electronic Co., Ltd 76,231.08 25,817.90
Accounts payable Putian High Technology Industry Co. , Ltd. 109,077.86
Accounts payable Nanjing Putian Swanking Electrical Co., Ltd 891,820.52 657,910.22
Accounts payable Wuhan Flames Putian Information Technology Co., Ltd. 1,695,750.00
Accounts payable Nanjing Prachanda Live Optical Network Co., Ltd 40,682,414.08
Received in
China Putian Information Industry Group Co. 22,900.00
advances
153
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
X. Share-based Payment
1. Share payment the overall situation
The total equity instruments granted during this period
The total exercise of equity instruments during this
period
The total failure of equity instruments during this
period
Range of the share option exercise price outstanding
by the end of the period and the remaining period of
the contract
Range of other equity instruments exercise price
outstanding by the end of the period and the
remaining period of the contract
2. Equity-settled share-based payment
Unit: Yuan
Fair value of equity instruments on grant date
The best estimate of the number of vested equity instruments
The reasons for materially different from the period estimated and
previous period estimated
Capital surplus to equity - settled share - based payment cumulative
amount
Total cost of equity settled share-based payment
3. Cash-settled share-based payment
Unit: Yuan
Companies bear the shares or other equity instruments based on the
calculation method for the fair value of certain liabilities
Liabilities for cash-settled share-based payment
Total cost of cash-settled share-based payment
4. Share-based payment services
Unit: Yuan
Share-based payment in exchange for the services of employees
Share-based payment in exchange for other services
154
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
5. Modified, terminated of share-based payment
XI. Contingencies
1. The pending litigation or arbitration formed a liability and its financial effect
None
2. Contingent liabilities formed by external guarantee and its financial effect
None.
3. Other contingent liabilities
None
XII. Commitments
1. Significant commitment matters
None
2. Early promise fulfillment situation
None
XIII. Events occurring after the balance sheet date
1. Important matters after balance sheet date
Unit: Yuan
Effect on the financial position and Reasons for cannot estimate the
Item Content
operating results impact
2. Balance sheet date profit allocation illustrate
Unit: Yuan
155
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
The proposed allocation of profits or dividends
Profit or dividend declaration issued after consideration and approval
3. Other matters after balance sheet date
None
XIV. Other significant matters
1. Non-monetary assets exchange
2. Debt restructuring
3. Business combinations
4. Lease
5. Financial instruments outstanding at the end of the year and can be converted into shares
6. Annuity plan main contents and major changes
7. Other important matters need disclosure
XV. Notes to main items of financial statement of parent company
1. Account receivable
(1)Classification of accounts receivable
As of 30 June 2012
Item Book balance Reserve for bad debts
Amount Percentage (%) Amount Percentage (%)
1. Single amount dramatic and individual provision for
the accounts receivable
2. Classification as the group of provision for account
receivable
Group1 266,803,331.31 44.11 1,791.00 -
156
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Group 2 306,265,571.56 50.63 0 -
Group 3 29,893,091.59 4.94 7,640,137.47 25.56
Subtotal 602,961,994.46 99.69 7,641,928.47 1.27
3. Single amount not significant but single provision
1,898,677.61 0.31 1,898,677.61 100.00
for accounts receivable
Total 604,860,672.07 100.00 9,540,606.08 1.58
As of 31 December 2011
Item Book balance Reserve for bad debts
Amount Percentage (%) Amount Percentage (%)
1. Single amount dramatic and individual provision for
the accounts receivable
2. Classification as the group of provision for account
receivable
Group1 221,649,811.83 44.20 4,315,816.31 1.95
Group 2 238,373,107.04 47.53
Group 3 39,557,597.14 7.89 5,814,242.67 14.70
Subtotal 499,580,516.01 99.62 10,130,058.98 2.03
3. Single amount not significant but single provision for
1,898,677.61 0.38 1,898,677.61 100.00
accounts receivable
Total 501,479,193.62 100.00 12,028,736.59 2.40
Notes：Single amount dramatic and individual provision for accounts receivable refers to single exceed RMB 10,000,000.00 Yuan, test no
impairment, the company according to age analysis accrual impairment provision. According to the group of receivables provision for more than 2
years of age receivables, via test no impairment, according to age analysis accrual impairment provision.
Individually significant receivables and individual provision for bad debts at the end of the period:
157
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
√Applicable □Not applicable
Portfolio, adopt aging analysis of the provision for bad debts:
□ Applicable √ Not applicable
Adopt age analysis provision in group as follows:
As of 30 June 2012 As of 31 December 2011
Age
Proportion Reserve for bad Proportion Reserve for bad
Book balance (%) debts Book balance (%) debts
Within 1 year 241,061,005.92 81.24 - 212,666,026.63 81.41
Subtotal
241,061,005.92 81.24 - 212,666,026.63 81.41
Within 1 year
1 to 2 years 35,860,253.44 12.09 19,031,838.28 7.29
2 to 3 years 7,209,646.30 2.43 720,964.63 7,085,288.97 2.71 708,528.90
3 years or
12,565,517.24 4.24 6,920,963.84 22,424,255.09 8.59 9,421,530.08
above
3 to 4 years 4,247,996.96 1.43 1,274,399.09 14,471,660.93 5.54 4,341,498.27
4 to 5 years 4,248,255.07 1.43 1,699,302.03 4,260,743.33 1.63 1,704,297.33
5 years or
4,069,265.21 1.38 3,947,262.72 3,691,850.83 1.42 3,375,734.48
above
Total 296,696,422.90 -- 7,641,928.47 261,207,408.97 -- 10,130,058.98
Portfolio, adopt balance percentage of the provision for bad debts:
□ Applicable √ Not applicable
Portfolio, adopt other methods of the provision for bad debts:
√ Applicable □Not applicable
Unit: Yuan
Item Book balance Provision for bad debts
Group 2 306,265,571.56 0.00
Total 306,265,571.56 0.00
Closing single amount not significant but single provision for accounts receivable
158
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
√ Applicable □Not applicable
Receivables Book amount Bad debt Proportion Reason
Aging longer
1,782,643.57 1,782,643.57 100.00%
M/S WHISTLER TELECOM (PVT) LTD difficult to recover
Aging longer
103,534.04 103,534.04 100.00%
PRADUFA difficult to recover
Aging longer
12,500.00 12,500.00 100.00%
China Unicom Nanjing branch difficult to recover
Total 1,898,677.61 1,898,677.61 —— ——
(2) Current payback or return of receivables
The accumulated amount of
Reversed or recovered The basis of the original provision for bad debts Reversed or recovered
Receivables
reasons bad debts before reversed or amount
recovered
Total -- -- --
Closing single amount not significant but single provision for accounts receivable
Receivables Book amount Bad debt Proportion Reason
Aging longer
1,782,643.57 1,782,643.57 100.00%
M/S WHISTLER TELECOM (PVT) LTD difficult to recover
Aging longer
103,534.04 103,534.04 100.00%
PRADUFA difficult to recover
Aging longer
12,500.00 12,500.00 100.00%
China Unicom Nanjing branch difficult to recover
Total 1,898,677.61 1,898,677.61 —— ——
During this year no full provision for bad prophase preparation, or larger proportion, but in this period fully recovery or payback, or recovery or
payback larger proportion of account receivable.
159
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(3) Written -off of accounts receivable in the current period
Unit: Yuan
Nature of the Related party
Name Write-off time Write-off amount Write-off reasons
receivables transactions
Total -- -- 0.00 -- --
(4) Accounts receivable due from shareholder who has more than 5% (including 5 %) voting shares of the Company
at year-end
√ Applicable □Not applicable
Unit: Yuan
As of 30 June 2012 As of 31 December 2011
Name
Book balance Provision for bad debts Book balance Provision for bad debts
China Putian Co., Ltd. 22,155,464.10 0.00 25,909,842.11 0.00
Total 22,155,464.10 0.00 25,909,842.11 0.00
(5) The nature or contents of the large amount of receivables
See receivables in the amount of top five.
(6) Top 5 debtors of accounts receivable
Relationship with the Proportion of total
Name of the debtors Amount Aging
Company amount (%)
China Telecom Co., Ltd. Jiangsu Branch Non-related party 128,946,942.82 1 to 2 years 21.32
Agricultural Bank of China Non-related party 31,712,852.29 1 to 2 years 5.24
China Tietong Group Ltd. Co. Jiangsu Branch Non-related party 25,429,732.75 Within 1year 4.20
China Putian Information Industry Co., Ltd. Parent company 22,155,464.10 Within 1year 3.66
China Telecom Co., Ltd. Xi’an Branch Non-related party 17,214,673.47 1 to 2 years 2.84
Total —— 225,459,665.43 —— 37.26
(6) Accounts receivable of related parties accounts
Proportion of total amount
Name of the debtors Relationship with the Company Amount
(%)
160
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Nanjing Putian Zhongyou Telecommunication
215,472.80 0.04
Co., Ltd. Affiliated venture
Nanjing Prachanda Live Optical Network Co., Ltd Joint venture 14,372.07 -
China Putian Information Industry Co., Ltd. Parent company 22,155,464.10 3.66
Controlled by the same parent
Shanghai Putian Youtong Technology Co., Ltd. 13,341,700.00 2.21
company
Total 35,727,008.97 5.91
(7) Balance of accounts receivable in foreign currencies
As of 30 June 2012 As of 31 December 2011
Foreign currency Exchange
Exchange
Original currency rate RMB converted Original currency rate RMB converted
USD 5,413.82 6.3249 34,241.87 534,071.65 6.3009 3,365,132.06
Total 5,413.82 —— 34,241.87 534,071.65 6.3009 3,365,132.06
(8)
The amount of the transfer of the receivables that do not meet the derecognition criteria 0.00Yuan.
(9) Receivables underlying asset securitization, to be a brief description of the relevant trading arrangements
None
2. Other receivables
(1) Classification of other receivables
As of 30 June 2012
Item Book balance Reserve for bad debts
Amount Percentage (%) Amount Percentage (%)
161
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
1. Single amount dramatic and individual provision for the
28,912,122.71 20.93 28,912,122.71 100.00
accounts receivable
2. Classification as the group of provision for account
receivable
Group1 20,000,000.00 14.48 6,150,000.00 30.75
Group 2 75,869,819.08 54.90
Group 3 9,299,604.95 6.73 2,399,671.62 25.80
Subtotal 105,169,424.03 76.11 8,549,671.62 0.08
3. Single amount not significant but single provision for
4,085,166.33 2.96 4,085,166.33 100.00
accounts receivable
Total 138,166,713.07 100.00 41,546,960.66 30.07
As of 31 December 2011
Item Book balance Reserve for bad debts
Amount Percentage (%) Amount Percentage (%)
1. Single amount dramatic and individual provision for the
28,912,122.71 22.97 28,912,122.71 100.00
accounts receivable
2. Classification as the group of provision for account
receivable
Group1 60,206,654.76 47.83 2,300,000.00 3.82
Group 2 24,099,015.17 19.15
Group 3 8,569,058.77 6.81 2,752,933.92 32.13
Subtotal 92,874,728.70 73.79 5,052,933.92 5.44
162
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
3. Single amount not significant but single provision for
4,085,166.33 3.24 4,085,166.33 100.00
accounts receivable
Total 125,872,017.74 100.00 38,050,222.96 30.23
Notes：Single amount dramatic and individual provision for other receivable refers to single exceed RMB 10,000,000.00 Yuan, test no impairment,
the company according to age analysis accrual impairment provision. According to the group of other receivables provision for more than 2 years of
age receivables, via test no impairment, according to age analysis accrual impairment provision.
Individually significant receivables and individual provision for bad debts at the end of the period:
√ Applicable □ Not applicable
Other receivables Book value Amount of bad debts Proportion Reasons
Beijing Picom
Aging longer difficult to
Telecommunications 28,912,122.71 28,912,122.71 100%
recover
Equipment Ltd.
Total 28,912,122.71 28,912,122.71 -- --
Adopt age analysis provision in group as follows:
√ Applicable □ Not applicable
As of 30 June 2012 As of 31 December 2011
Age
Reserve for bad Reserve for bad
Book balance Proportion (%) debts Book balance Proportion (%) debts
Within 1 year
395,533.14 1.35 40,182,195.99 58.43
(contain 1 year)
Subtotal within 1
395,533.14 1.35 40,182,195.99 58.43
year
1 to 2 years 1,073,994.42 3.67 1,747,054.82 2.54
2 to 3 years 4,575,933.12 15.62 457,593.31 23,049,846.89 33.51 2,304,984.69
Subtotal over 3
23,254,144.27 79.36 8,092,078.31 3,796,615.83 5.52 2,747,949.23
years
3 to 4 years 21,041,552.52 71.82 6,312,465.76 1,355,238.00 1.97 406,571.40
4 to 5 years 716,632.00 2.45 286,652.80 165,000.00 0.24 66,000.00
163
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
5 years or above 1,495,959.75 5.09 1,492,959.75 2,276,377.83 3.31 2,275,377.83
Total 29,299,604.95 -- 8,549,671.62 68,775,713.53 -- 5,052,933.92
Portfolio, adopt balance percentage of the provision for bad debts:
□ Applicable √ Not applicable
Portfolio, adopt other methods of the provision for bad debts:
√ Applicable □Not applicable
Unit: Yuan
Item Book balance Provision for bad debts
Group 2 75,869,819.08 0.00
Total 75,869,819.08 0.00
Closing single amount not significant but single provision for accounts receivable
√ Applicable □Not applicable
Other receivables Book amount Bad debt Proportion Reason
Aging longer
Putian Telecommunications (Hong Kong) Co., Ltd. 4,085,166.33 4,085,166.33 100%
difficult to recover
(2) Current payback or return of receivables
The accumulated amount of
Reversed or recovered The basis of the original provision for bad debts Reversed or recovered
Other receivables
reasons bad debts before reversed or amount
recovered
Total -- -- --
During this period no full provision for bad prophase preparation, or larger proportion, but in this period fully recovery or payback, or recovery or
payback larger proportion of account receivable.
(3) Written -off of accounts receivable in the current period
Unit: Yuan
Nature of the Related party
Name Write-off time Write-off amount Write-off reasons
receivables transactions
Total -- -- 0.00 -- --
During this period, no written-off or written off has been recovered in other receivables
164
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
(4) Accounts receivable due from shareholder who has more than 5% (including 5 %) voting shares of the Company
at year-end
□ Applicable √ Not applicable
(5) Large amount of other receivables nature or content
See table below (6).
Name of the debtors Amount Other receivables nature or content
Beijing Picom Telecommunications Equipment Ltd. 28,912,122.71 Receivables and payables
Yuhua Peoples’ Government Nanning Office 20,000,000.00 Receivables and payables
Putian Telecommunications (Hong Kong) Co., Ltd. 4,085,166.33 Receivables and payables
Total 52,997,289.04 ——
(6) Top 5 debtors of other receivables
Relationship with the Proportion of total
Name of debtors Amount Aging
Company amount (%)
Beijing Picom Telecommunications Equipment More than 6
Subsidiary 28,912,122.71 20.93
Ltd years
Yuhua Peoples’ Government Nanning Office Non –related party 20,000,000.00 3 to 5 years 14.48
Putian Telecommunications (Hong Kong) Co.,
Consolidated subsidiary 4,085,166.33 3 to 4 years 2.96
Ltd.
Shanghai communication bidding Co. , Ltd. Non –related party 1,220,000.00 1 to 2 years 0.88
China Mobile Communications Group Jiangsu
Non –related party 980,000.00 2 to 5 years 0.71
Co., Ltd, Nanjing Branch
Total 55,197,289.04 39.96
(7) Other receivables from related parties
Proportion of total
Name of debtors Relationship with the Company Amount
amount (%)
165
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Proportion of total
Name of debtors Relationship with the Company Amount
amount (%)
Beijing Picom Telecommunications Equipment Ltd Subsidiary 28,912,122.71 20.93
Putian Telecommunications (Hong Kong) Co., Ltd. Consolidated subsidiary 4,085,166.33 2.96
Total 32,997,289.04 23.89
(8)
The amount of the transfer of the receivables that do not meet the derecognition criteria 0.00Yuan.
(9) Receivables underlying asset securitization, to be a brief description of the relevant trading arrangements
None
3. Long-term equity investments
Share Voting
holding right
percent proporti
age of on of
Book balance at Book balance at the the
Accounting Initial cost of
Invested units the end of 31 Movement the end of 30 June Compa Compa
Method investment
December 2011 2012 ny ny
among among
invested investe
units) d units)
(%) (%))
Nanjing Southern
Cost
Telecommunications 33,175,148.00 33,175,148.00 33,175,148.00 98.24 98.24
Method
Co., Ltd.
Nanjing Putian Telege
Cost
Intelligent Building 3,320,003.45 3,320,003.45 3,320,003.45 45.77 45.77
Method
Ltd.
Nanjing Putian 2,610,457.00 2,610,457.00 2,610,457.00 50.7 50.7
Cost
Changle
166
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Share Voting
holding right
percent proporti
age of on of
Book balance at Book balance at the the
Accounting Initial cost of
Invested units the end of 31 Movement the end of 30 June Compa Compa
Method investment
December 2011 2012 ny ny
among among
invested investe
units) d units)
(%) (%))
Telecommunications Method
Equipment Co., Ltd.
Nanjing Bada
Cost
Telecommunications 5,610,000.00 5,610,000.00 5,610,000.00 60 60
Method
Co., Ltd
Nanjing Putian
Wongshi Cost
40,997,683.00 40,997,683.00 40,997,683.00 99.42 99.42
Telecommunications Method
Co., Ltd.
Nanjing Putian Cost
9,146,455.13 7,741,140.41 7,741,140.41 78 78
Network Co., Ltd. Method
Putian
Cost
Telecommunications 1,910,520.00 1,910,520.00 1,910,520.00 90 90
Method
(Hong Kong) Co., Ltd.
Nanjing Putian
Information Cost
13,860,000.00 13,860,000.00 13,860,000.00 99.98 99.98
Technology Company Method
Ltd.
Nanjing Putian
Cost
Telecommunication 1,294,510.00 1,294,510.00 1,294,510.00 70.00 70.00
Method
Technology Co., Ltd.
Beijing Picom Cost
1,854,910.00 1,854,910.00 1,854,910.00 51.00 51.00
Telecommunications Method
167
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Share Voting
holding right
percent proporti
age of on of
Book balance at Book balance at the the
Accounting Initial cost of
Invested units the end of 31 Movement the end of 30 June Compa Compa
Method investment
December 2011 2012 ny ny
among among
invested investe
units) d units)
(%) (%))
Equipment Ltd
Nanjing Yahua Cost
420,915.00 420,915.00 420,915.00 10.00 10.00
Galvanization Factory Method
Hangzhou Swanking Cost
321,038.00 321,038.00 321,038.00 2.26 2.26
Electric Appliance Method
Nanjing Mennekes
Cost
Electric Appliances 15,037,508.00 57,831,011.71 57,831,011.71 75.00 75.00
Method
Co., Ltd.
Nanjing Putian
Datang Information Equity
600,000.00 2,520,399.15 134,863.31 2,655,262.46 40.00 40.00
and Electric Company Method
Ltd
Nanjing Putian
Zhongyou Equity
300,000.00 238,892.31 -17,969.72 220,922.59 30.00 30.00
Telecommunication Method
Co., Ltd.
Putian High
Equity
Technology Industry 167,548,141.29 168,945,752.43 82,092.20 169,027,844.63 49.64 49.64
Method
Co. , Ltd.
Shanghai Yulong Cost
23,310,000.00 14,721,843.51 14,721,843.51 17.79 17.79
Biotech Ltd. Method
Qufu Yulong Bio-Tech Cost - 3,113,727.00 3,113,727.00 17.79 17.79
168
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Share Voting
holding right
percent proporti
age of on of
Book balance at Book balance at the the
Accounting Initial cost of
Invested units the end of 31 Movement the end of 30 June Compa Compa
Method investment
December 2011 2012 ny ny
among among
invested investe
units) d units)
(%) (%))
Co., Ltd. Method
Nanjing Prachanda
Live Optical Network Equity 13,544,400.00 13,354,704.43 1,249,537.60 14,604,242.03 50.00 50.00
Co., Ltd Method
Total 373,842,655.40 1,448,523.39 375,291,178.79 —— ——
(Continued)
Impairment provision withdrawn Cash dividends during the
Invested units Impairment provision
during the period period
Nanjing Southern Telecommunications
Co., Ltd.
Nanjing Putian Telege Intelligent Building
4,576,700.00
Ltd.
Nanjing Putian Changle
Telecommunications Equipment Co., Ltd.
Nanjing Bada Telecommunications Co.,
Ltd
Nanjing Putian Wongshi
Telecommunications Co., Ltd.
Nanjing Putian Network Co., Ltd.
169
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Impairment provision withdrawn Cash dividends during the
Invested units Impairment provision
during the period period
Putian Telecommunications (Hong Kong)
Co., Ltd.
Nanjing Putian Information Technology
Company Ltd.
Nanjing Putian Telecommunication
Technology Co., Ltd
Beijing Picom Telecommunications
1,854,910.00
Equipment Ltd
Nanjing Yahua Galvanization Factory
Hangzhou Swanking Electric Appliance
Nanjing Mennekes Electric Appliances
Co., Ltd.
Nanjing Putian Datang Information and
Electric Company Ltd
Nanjing Putian Zhongyou
Telecommunication Co., Ltd.
Nanjing Putian Telecommunication
Technology Industry Park Co., Ltd.
Shanghai Yulong Biotech Ltd.
Qufu Yulong Bio-Tech Co., Ltd.
Nanjing Prachanda Live Optical Network
Co., Ltd
Total 1,854,910.00 - 4,576,700.00
170
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
4. Operating revenues and costs
(1) Operating revenues
Item For 30 June 2012 For 30 June 2011
Main operating revenue 879,294,779.90 722,549,891.61
Other operating revenue 14,741,469.83 20,183,517.95
Operating costs 818,400,146.13 679,207,670.70
(2) Main Business (by industry)
For 30 June 2012 For 30 June 2011
Item
Main operating revenue Main operating cost Main operating revenue Main operating cost
Communications equipment
879,294,779.90 805,662,520.74 722,549,891.61 664,627,325.63
manufacturing industry
Total 879,294,779.90 805,662,520.74 722,549,891.61 664,627,325.63
(3) Main Business (by products)
For 30 June 2012 For 30 June 2011
Item
Main operating revenue Main operating cost Main operating revenue Main operating cost
Communication products 879,294,779.90 805,662,520.74 722,549,891.61 664,627,325.63
Total 879,294,779.90 805,662,520.74 722,549,891.61 664,627,325.63
(4) Main Business (by regions)
For 30 June 2012 For 30 June 2011
Item
Main operating revenue Main operating cost Main operating revenue Main operating cost
Domestic market 876,868,985.63 803,591,754.40 716,462,348.54 658,850,183.17
Oversea market 2,425,794.27 2,070,766.34 6,087,543.07 5,777,142.46
171
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Total 879,294,779.90 805,662,520.74 722,549,891.61 664,627,325.63
(5) The amount of operating revenues received from the top 5 customers this year
Proportion taking in total operating
Item operating revenues
income of the Company (%)
China Telecom Co., Ltd., Jiangsu Branch 437,521,662.45 48.94
China Telecom Co., Ltd., Shanghai Branch 52,688,369.85 5.89
China Tietong Group Co., Ltd., Jiangsu Branch 30,591,421.21 3.42
Chengdu RenYuan Information Technology Co., Ltd. 26,748,796.97 2.99
China United Network Communication Co., Ltd, Beijing Branch 25,534,721.73 2.86
Total 573,084,972.21 64.10
5. Investment income
(1) Details of Investment Income
Item For 30 June 2012 For 30 June 2011
Long-term equity investment income by cost method 4,576,700.00 4,660,400.00
Long-term equity investment income by equity method 1,448,523.39 2,414,196.35
Income from disposal of long-term equity investment
Investment income from period of holding tradable financial assets
Investment income from period of holding hold-to-maturity
investment
Income from investment in holding of financial assets available for
sale
Income from investment in disposal of financial assets available for
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item For 30 June 2012 For 30 June 2011
sale
Investment income from disposal of hold-to-maturity investment
Investment income from disposal of financial assets available for
sale
Others
Total 6,025,223.39 7,074,596.35
(2) Long-term equity investment income by cost method
Investee For 30 June 2012 For 30 June 2011 Reasons for movement
Nanjing Putian Telege Intelligent Building According to the company’s uniform
4,576,700.00 4,576,700.00
Ltd. distribution police
Nanjing Yuhua Galvanization Factory 83,700.00 Business performance fluctuations
Total 4,576,700.00 4,660,400.00
(3) Long-term equity investment income by equity method
Investee For 30 June 2012 For 30 June 2011 Reasons for movement
Nanjing Mennekes Electric Appliances Ltd 2,322,981.92 Business fluctuations
Nanjing Prachanda Live Optical Network Co.,
1,249,537.60 -25,297.62
Ltd Business fluctuations
Nanjing Putian Datang Information and Electric
134,863.31 12,337.19
Company Ltd. Business fluctuations
Nanjing Putian Zhongyou Telecommunication
-17,969.72 13,050.01
Co., Ltd. Business fluctuations
Putian High Technology Industry Co. , Ltd. 82,092.20 91,124.85 Business fluctuations
Total 1,448,523.39 2,414,196.35
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
None of significant limitation of the repatriation of investment income
6. Supplementary information about consolidated statement of cash flows
Item For 30 June 2012 For 30 June 2011
1、Adjustment of net profit into operation activity cash flow：
Net profit -4,605,755.52 -3,628,898.83
Add: provision for depreciation of assets 1,008,607.19 1,546,601.86
Depreciation of fixed assets, consumption of oil gas assets and depreciation of
5,346,677.97 2,741,215.53
productive biological assets
Amortization of intangible assets 448,236.55 469,533.19
Amortization of long-term prepayments
Loss from disposal of fixed assets, intangible assets and other long term assets (gain
-69,124.11
is listed with “-”)
Loss from discarding fixed assets as useless (gain is listed with “-”)
Loss from change of fair value(gain is listed with “-”)
Financial expense (gain is listed with “-”) 14,652,151.91 10,872,553.49
Investment loss (gain is listed with “-”) -6,025,223.39 -7,074,596.35
Decrease of deferred income tax assets (increase is listed with“-”)
Increase of deferred income tax liabilities (decrease is listed with “-”)
Decrease of inventories (increase is listed with “-”) -21,636,091.82 -54,225,574.83
Decrease of operational accounts receivable (increase is listed with “-”) -55,466,493.18 -167,055,338.87
Increase of operational accounts payable (decrease is listed with “-”) 25,843,528.28 194,200,805.68
Others
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
Item For 30 June 2012 For 30 June 2011
Net cash flow arising from operation activities -40,503,486.12 -22,153,699.13
2、Significant investment and financing activities with no reference to cash collection
and payment:：
Debt convert to capital
Convertible bond due within one year
Fixed assets leased in by financing
3、Net change in cash and cash equivalent:
Balance of cash at period-end 203,938,223.14 169,289,803.91
Less: Balance of cash at period-begin 193,897,034.53 185,951,591.96
Add: Balance of cash equivalent at period-end
Less: Balance of cash equivalent at period-beginning
Net increase in cash and cash equivalent 10,041,188.61 -16,661,788.05
7. Reverse purchased assets and liabilities recorded by evaluate value
Name of evaluated assets/liabilities Evaluated value Book value
Assets
liability
XVI. Supplementary Information
1. Return on equity and earnings per share
Calculation of return on equity and earnings per share based on issued by China securities
175
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
regulatory commission.( China Securities Regulatory Commission Announcement [2010] No. 2)< Public offering of securities of the company's
Information Disclosure Explanatory Notice No. 1 - Non-recurrent gains and losses (2008).( China Securities Regulatory Commission Announcement
[2008] No. 43)
Earnings per share
Weighted average return
Profits of the reporting period
on equity（%） Basic earnings per
Diluted earnings per share
share
Net profit attributable to shareholders of parent company 1.61 0.028 0.028
Net profit attributable to shareholders of parent company
1.54 0.027 0.027
after deduction of non-current gains and losses
2. Description of the abnormality in the main accounting statement item
Analysis of items of financial statements, which vary in 30% (including 30%) or more and account for 5% (including 5%) or 10% of the total profits of
the reporting period (including 10%)
(1) Item of balance sheet
As of 31 December Proportion of
Item As of 30 June 2012 Amount of movement Note
2011 movement
Notes receivable 7,061,951.89 12,863,723.59 -5,801,771.70 -45.10% Note1
Construction in progress 13,981,775.21 10,062,821.54 3,918,953.67 38.94% Note2
Notes payable 30,282,254.11 262,091.29 30,020,162.82 11454.09% Note3
Tax payable -1,405,933.10 15,773,935.97 -17,179,869.07 -108.91% Note4
Note1：Bills of exchange received decline;
Note2：The current plant transformation into a larger;
Note3：Issue out more bill of exchange;
Note4: The current procurement more, the deduction of VAT proceeds larger.
(2) Item of Income Statement
Item As of 30 June 2012 As of 31 December Amount of movement Proportion of Note
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2012
2011 movement
Financial expense 16,942,792.36 12,030,031.87 4,912,760.49 40.84% Note1
Investment income 1,462,045.66 2,853,983.65 -1,391,937.99 -48.77% Note2
Non-operating income 383,261.27 57,372.34 325,888.93 568.02% Note3
Note1：Financing increased;
Note2：The accounting of Nanjing Mennekes Electric Appliances Co., Ltd. changed from the cost method to the equity method;
Note3：More quality compensation.
IX. Documents Available for Reference
Documents for inspection
(I)Text of semi-annual report carrying personal signature of the Chairman;
(II)Text of financial report carrying signatures of legal representative, principal in charge of accounting works
and principal of accounting institution under seals thereof;
(III) Texts and original copies of all documents of the Company disclosed on the newspapers designated by the
CSRC during the reporting period.
Chairman: Sun Liang
Approval dated by the Board: 24 August 2012
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