Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Nanjing Putian Telecommunications Co., Ltd.
SEMI-ANNUAL REPORT 2013
August 2013
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred
to as the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall
take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
Other directors attended the board meeting on deliberating the report except for
the following directors:
Name of absent director Position of absent director Reason for absence Attorney
Li Tong Director Due to official business Huang Haodong
Li Ying Director Due to official business Han Shu
Zhang Shunyi Independent director Due to official business Zheng Aimei
Ding Haiyan Independent director Due to official business Zheng Aimei
The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either.
Xu Qian, principal of the Company, Wang Hong, person in charger of
accounting works and Shi Lian, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of Semi-Annual
Report 2013 is authentic, accurate and complete.
Concerning the forward-looking statements with future planning involved in the
Semi-Annual Report, they do not constitute a substantial commitment for
investors. Investors are advised to exercise caution of investment risks.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Contents
Section I. Important Notice, Contents and Paraphrase ............................................................................................................................2
Section II Company profile .....................................................................................................................................................................5
Section III. Accounting data and summary of financial indexes ..............................................................................................................7
Section IV. Report of the Board of Directors ...........................................................................................................................................9
Section V. Iimportant Events .................................................................................................................................................................22
Section VI. Changes in Shares and Particulars about Shareholders .......................................................................................................36
Section VII. Directors, Supervisors and Senior Executives ...................................................................................................................40
Section VIII. Financial Report ...............................................................................................................................................................41
Section IX. Documents available for reference ...................................................................................................................................187
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Paraphrase
Items Refers to Definition
The Company, Company, Nanjing Putian Refers to Nanjing Putian Telecommunications Co., Ltd.
China Potevio Refers to China Potevio Company Limited
CSRC Refers to China Securities Regulatory Commission
SZ Stock Exchange Refers to Shenzhen Stock Exchange
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Section II Company profile
I. Company Profile
Short form for share NJ TEL B Code for share 200468
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the Company 南京普天通信股份有限公司
English name of the
Nanjing Putian Telecommunications Co., Ltd.
Company(if applicable)
Legal Representative Xu Qian
II. Contact person and ways
Secretary of the Board Rep. of securities affairs
Name Zhang Shenwei Xiao Hong
No. 1 Putian Road, Qinhuai District No. 1 Putian Road, Qinhuai District
Contact adds.
Nanjing Nanjing
Tel. 86-25-58962010 86-25-58962072
Fax. 86-25-52409954 86-25-52409954
E-mail zsw@postel.com.cn xiaohong@postel.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2012.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2012.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
organization code have no change in reporting period, found more details in Annual Report 2012.
4. Other relevant information
Whether other relevant information has changed in reporting period or not
□ Applicable √ Not applicable
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y (%)
Operating revenue (RMB) 1,207,557,538.82 1,349,963,182.82 -10.55%
Net profit attributable to shareholders of
-2,719,217.34 6,038,203.37 -145.03%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting -3,466,018.77 5,763,929.27 -160.13%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-135,255,287.95 -28,209,564.55 -379.47%
activities(RMB)
Basic earnings per share (RMB/Share) -0.013 0.028 -146.43%
Diluted earnings per share (RMB/Share) -0.013 0.028 -146.43%
Weighted average ROE (%) -0.72% 1.61% -2.33%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end (%)
Total assets (RMB) 2,097,326,940.41 2,090,174,751.87 0.34%
Net assets attributable to shareholder of
375,379,340.51 377,805,453.39 -0.64%
listed company(RMB)
II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Amount at
Amount in this period Amount in last period Amount at period-end
period-begin
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Chinese GAAP -2,719,217.34 6,038,203.37 375,379,340.51 377,805,453.39
Items and amount adjusted by IAS
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Amount at
Amount in this period Amount in last period Amount at period-end
period-begin
Chinese GAAP -2,719,217.34 6,038,203.37 375,379,340.51 377,805,453.39
Items and amount adjusted by foreign accounting rules
3. Reasons for the differences of accounting data under accounting rules in and out of China
III. Items and amounts of extraordinary profit (gains)/loss
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
36,352.80
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
1,793,770.76
national standards, which are closely relevant to enterprise’s
business)
Gains/losses of debt restructure -30,865.75
Other non-operating income and expenditure except for the
-471,706.10
aforementioned items
Less: impact on income tax 242,723.61
Impact on minority shareholders’ equity (post-tax) 338,026.67
Total 746,801.43 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Section IV. Report of the Board of Directors
I. Introduction
In reporting period, under the guidance of “innovation, integration and capital” principle, the Company continues to push the
management principle of “operator, operating platform and managerial resources”, strengthen the implementation of management
improvement, focusing on efficiency; Combining annual operation budget of the Company, adjusted the management strategy timely,
stive to improve the management situation, guarantee a steady progress in vary operation activities. Suffered by growing pressure
from the economic downturn, grwoth of the market needs slow down and soaring costs etc., in first half year of 2013, benefit from
part of the operation entity for the Company shows a year-on-year declined: the Company achieved operation revenue of RMB 1208
million with a y-o-y down of 10.55 percent; total profit was RMB 2.1165 million, down 85.27 percent year-on-year; the net profit
attributable to shareholder of listed company was RMB -2.7192 million, declined 145.03 percent year-on-year.
II. Main business analysis
Introduction
Main business of the Company was telecommunication equipment manufacturing, products cover the areas of optical communication,
network communication and multimedia communication etc. In reporting period, influenced by less investment on broadband and 3G
construction from the operator and slowing invetsment in 4G etc., revenue from orders of the Company drop from a year age;
19.49achieved operation revenue in first half year of RMB 1208 million, fell 10.55 percent year-on-yera; RMB 986 million funds
withdrawal with a year-on-year down of 19.49 percent.
Y-o-y changes of main financial data
In RMB
Y-o-y
Same period of last
Current period increase/decreas Reasons for changes
year
e (%)
Slowing investment from the operator,
Operation revenue 1,207,557,538.82 1,349,963,182.82 -10.55%
orders declined in reporting period
Sales volume declined y-o-y in reporting
Operation cost 1,043,008,171.55 1,167,040,803.45 -10.63%
period
Sales volume declined y-o-y in reporting
Sales expenses 82,273,548.91 85,918,634.36 -4.24%
period
Technological development costs and
Administrative expenses 62,829,331.87 61,694,140.49 1.84%
salary has a y-o-y rises
(1) in first half year, RMB 40 million
accommodation bill reduced, discount
charge RMB 1.2 million decreased and
Financial cost 11,488,031.64 16,942,792.36 -32.2%
the interest cost in short period declined;
(2) compare to same period of last year,
suffered by the policies, lending rate and
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
discount rate for the bank acceptance bill
has declined, than the interest cost
decreased
Southern Company, subsidiary of the
Company, has a y-o-y growth in profit,
Income tax expense 3,597,267.56 2,022,892.44 77.83%
the income tax expenses increased
correspondingly
Enlargement the development strength in
R&D investment 54,308,690.00 51,477,080.00 5.5%
reporting period
(1) More account payable are paid in
year-begin, than the cash out-flow
increased (2) growth of the account
Net cash flow arising receivable makes the cash inflow
-135,255,287.95 -28,209,564.55 -379.47%
from operation activities decreased relatively (3) More labor costs
and expenses paid by the Company.
Out-of-pocket cost and vary taxes
spending more than previous years
In reporting period, the Company
invested RMB 5 million in Nanjing
Putian Optical Network Co., Ltd., and no
Net cash flow arising
such expenses from a year ago; plant
from investment -14,400,330.30 -6,623,050.43 -117.43%
construction and petty payment for other
activities
fix assets investment increase RMB 1.62
million compare to same period of last
year
The bank loans paid in the Period has
Net cash flow arising
581,666.30 25,998,195.54 -97.76% approximately more RMB 20 million
from financing activities
from a year earlier.
In reporting period, the cash flows from
operation activities and financing
Net increase of cash and activities has dramatically down compare
-148,945,276.60 -8,820,992.36 -1,588.53%
cash equivalent to same period of last year, the
expenditure from investment activity
increased y-o-y
Major changes on profit composition or profit resources in reporting period
√Applicable □Not applicable
Increase or decre Range of
Item Jan -Jun 2013 Jan -Jun 2012 Main reason of great changes
ase (RMB) change
Puzhu Company, the joint
Investment enterprise of the Company, has an
-1,883,203.49 1,462,045.66 -3,345,249.15 -228.81%
income accumulated deficit of RMB 5.12
million in the year while gains
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
profits at same period of last year,
RMB 2.55 million was recognized
as current investment losses based
on equity method
The Company has a y-o-y down in
sales revenue and sales gross profit
Operating
788,992.83 13,543,231.97 -12,754,239.14 -94.17% in the Period, meanwhile,
profit
investment income declined in this
year
Net Government subsidy obtained in
Non-Operating 1,327,551.71 823,195.65 504,356.06 61.27% the Period increased from a year
Income earlier
Southern Company, subsidiary of
Income tax the Company, has a y-o-y growth
3,597,267.56 2,022,892.44 1,574,375.12 77.83%
expense in profit, the income tax expenses
increased correspondingly
Sales revenue of the Company
declined 10.55 percent y-o-y, gross
profit margin was RMB 164.55
Net profit
million, RMB 18.37 million down
attributable to
from a year earlier of RMB 182.92
the parent -2,719,217.34 6,038,203.37 -8,757,420.71 -145.03%
million, investment income
company
decreased in the Year at the same
owners
time. The downing expenses can
not make up losses from the
declined gross profit
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
Review on the previous business plan and its progress during reporting period
Operation target for the year of 2013: achieve sales volume of RMB 2200 million, funds withdrawal of RMB 2340 million, strive for
a y-o-y progress in operation quality and complete the annual budget target. The Company achieved operation revenue of RMB 1208
million for the first half year of 2013, complted 54.89 percent in annual planning; funds withdrawal of RMB 986 million, a 42.13
percent of the annual planning completed.
The Company carry out various tasks in first half year around the annual operation planning:
I. Operation
Facing the anfractuosity market situation and a very diffcult business enviornment, all of the Company respond actovely to overcome
the difficult, through vary measures to satblize the mature market, explore emerging market, adjust resources allocation of the
Company, optimized product structure, enhance the product competitiveness, positively put more efforts to improve the contribution
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
from quality clinets and mature market, the Company maintain a stable in production and management basically.
(i) take advantage of the mature market, optimize the industrial structure, put forth effort on strenghening main business, constantly
reinforce core cometence.
Optical communication connect industry, strengthen the effors to deal with the concentraated purchase of operator, guarantee a status
in industry. In first half yera, the Company particpated in the prequalification of optical cable, DDF, ODF, comprehensive palette,
network cabinet, OCC and FCOA introduction from the China Telecom Group, all the products have approved successfully.
Meanwhile, change the sales policy, increase the commission for sales of non-concentrated purchase products, inspire sales man pay
more attention to the sales of non-concentrated purchase products.
Network communicationsintegrated acces industry: cultivate the values embodied in indusry market, promote solution for the access
application in clients. Develope a dedicated access products in telecom operators market, improve recognition in field of dedicated
access in operators. As for cabling industry, actively explore market in aspect of traditional products, seize the opportunity of
urbanization, make use of the climax of urban construction in second-tier and third-tier city, extending volume growth, maintain the
leading position in the industry all the time. Meanwhile, with the helf of supporting for independently innovative products from
government, vigorously develop new markets of high-end government-invested projects in first-tier city, achieve brekthrough of
expanding influence of high-end project in first-tier city basaed on the industry and large projects. Wireless system department grasp
the opportunity of WLAN development, with the helf of Putian Brand, take advantage of the solution marketing and services
marketing, made breakthroughs in private network market.
The integration services industry of multimedia network communication: remaining a indusry leading market position, continue to
advance the major clients strategy, further to explore new resources through marketing strategy of regular clients-oriented; in
addition to achieved a certain performance in industry of tax, petroleum and insurance etc., actively explore emerging industry as
nonferrous metals, civil administration and coal etc.
Application industry of the Internet of Things: comprehensive develop emerging industry of “civil administration”, “cloud
computing” and “the Internet of Things”, seized opportunty of attention on livelihood from the government, formulated a solution
plan of wisdom of pension and intelligent community. Aggressively expands into new field of city bus and video surveillance,
obtained a certain breakthrough in field of system integration.
Application industry of electrical and power supply: enlarge the independent development in market, electrical sets gradually
accepted by the market, and achieved remarkable results in nuclear industry promotion, power supply company and construction of
the government housing etc. Focuous on traditional field of metro, steel, power plant, aluminium manufacturer, airport and wharf etc.
as a market target, strenghthen exploration in market for new energy at the same time, service chamber in high protective range in
particular, the market share up to 60 percent.
Automation integgration processing industry: timely adjusted the production line layout according to the change of market
requirements, extended the production supply chain, reinforce control in way of production, delicacy and standardized the
manegment for supplies on hand, regular analyzed the inventory, adjusted and control the purchasing scheme according to market
needs, optimized process flow and improve the process efficiency. Integrated the OEM business, internally strictly control the quality,
optimized the production technology process and improved the competitiveness for main business; externally guarantee a advantage
in the great client indusry chain for the Company.
The international business obtained a certain progress by relying on the agency. Out of the traditionl product sales, carried on
extensive exchange around the project in aspect of construion of telecommunications infrastructure and light-current system
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
integration ect., and taking a steps toward transformation from product sales to project operation. Business of the Company extend
from Pakistan, the developing country, to Singapore and USA, the developed country and region.
(ii) Explore emerging market, pushed the industrial upgrading, further to strengthen original markets, proactively explore emerging
market, enhance the market shares and drive the indstrial upgrading under the guide from the market.
(iii) Carry out technical innvation around the needs from clients, under the guidline of “technology led the market, market drive the
technology” idea, a new products have been successfully developed.
II. Management
(i) Strengthen strategy invesment management, leading the development of the Company. Using development strategy as an entry
point, combining scientific and systematic strategy instrument, completed the formulation of rolling-three-year planning for the
operation entity of the Company, established a dynamic management mechanism, regularly reviewed and adjusted, efficiency
developed the strategy targe by closely surround the strategy implementation, guarantee a efficiency implementation of the strategy.
Positioning in the global level, drafted a idea of strategy planning of industrial sector division and resources integration.
Strengthening the research on strategy planning, further to enrich and improved the strategy plans for main industry, reinfored
analysis of the main industry market and real return on investment at the same time, providing a reference basis for the further
implementation of strategy layout of the HQ. Promoted the property rights restructuring, optimzied the resources allocation, adjusted
the equity in communication industry and smoothly implemente the capital increase for Puzhu Company.
(ii) Optimized the management mode, intensified fundation management, reinforced the management in budget and assets quality,
strengthen the analysis of operation activities for the operation entity, contrinues to promote the informatization construction.
(iii) Consolidated internal control and overall risk management, continues to improve the organization system and mechanism systme
of overall risk management, consider internal control as the important means for management of overall risks, standardize
management process and improve the controlling mechanism.
(iv) Foucusing on per capital benefit, upgrade the H&R management, improve the efficiency implemented the H&R system,
strengthen basic information management for H&R, concentrate on institutional of H&R management system.
(v) Promote system construction, generated benefits from management, solid progress in construciton of quality system, enviornment
management and occupational health and safety management, take step forward to reducing the puchasing cost and energy-saving
and cost-reducing.
(vi) Enhancing enterprise culture propaganda, improve corporate image and cohesion, conduct vigorous propaganda of culture of
“communicaiton, implementation and performance”, “sunshine, honest, understanding”, spreading the core value of “pragmatic,
collaboration and innovation”.
(vii) Strengthening the party construction, promoting a health devleopment of the Company
In second half year of 2013, in line with the annual general idea and work arrangement, the Company will made solid progress in
vary operation management, concern the economic benefit, improve operation quality, guarantee a completion in annual work target
and mission as a whole. The Company will put more efforts on the match analysis for resources invesment and market requirement,
rapid up the adjustment of industrial structure, personnel structure and manaegment structure, improved the adaptability on market
and new circumstances. On one hand, enhanced the reasonable layout of product structure and capacity control, proactively improved
the market-oriented operation mode; on the other hand, attach great importance to the excavation of old clinet market, improve the
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
point of strength with competitive advantage qualified, enhance the market competitiveness. Increase research of new technology and
new products at the same tine, adhere to strategy of “go out and come in”, fully aware of the needs from customers, improved the
product’s innovation ability, gradually comformity inside and outside resources beyond the product operation, focused on
transformation to idea of chain management. Meanwhile, further reinforce vary fundation management, improved the quality
development and efficiency through management upgrade and count on management innovation, guarantee a steady operation for the
production.
III. Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Operating Gross profit ratio
Operating cost operating revenue operating cost profit ratio over
revenue (%)
over same period over same period same period of
of last year (%) of last year (%) last year (%)
According to industries
Communication
equipment 1,149,500,752.80 1,000,433,034.29 12.97% -10.69% -10.66% -0.03%
manufacturing
Electric apparatus
equipment 50,689,615.54 37,864,868.93 25.3% -2.55% -4.19% 1.29%
manufacturing
According to products
Products for
1,149,500,752.80 1,000,433,034.29 12.97% -10.69% -10.66% -0.03%
communication
Products for
50,689,615.54 37,864,868.93 25.3% -2.55% -4.19% 1.29%
electric apparatus
According to region
Domestic 1,189,316,018.09 1,027,739,558.96 13.59% -10.95% -11.15% 0.2%
Overseas 10,874,350.25 10,558,344.26 2.91% 195.39% 300.63% -25.51%
IV. Core competitive-ness analysis
1. Major changes of core competence in reporting period and impact on the Company
No major changes on core competence of the Company in reporting period
2. Particular about major influence on core competence of the Company due to equipment or technology upgrading and lose of
franchise rights etc.
In reporting period, no major influence on core competence of the Company due to equipment or technology upgrading and lose of
franchise rights etc.
V. Investment analysis
1. Equity investment
(1) Investment
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Investment
Investment in the same period of last
Investment in the reporting(RMB) Change (%)
year’s (RMB)
5,000,000.00 0.00
Invested company
Equity ratio in invested company for listed
Name Main business
company (%)
Development and manufacture of ODN
Nanjing Putian Optical Network Co., Ltd products, optical communication 50%
components and RFTS
(2) Holding the equity of financial enterprise
Amount of Proportion
Amount of Proportion
stock-holdi of Book
stock-holdi of Gains and
Initial ng at the stock-holdi value at the
ng at the stock-holdi loss in the Accountin
Name Type investment beginning ng at the end of the Source of
end of the ng at the reporting g subject
cost(RMB) of the beginning period stock
period end of the (RMB)
period of the (RMB)
(Share) period (%)
(Share) period (%)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
(3) Securities investment
Amount
of Proportio Amount Proportio
Initial stock-hol n of of n of Book
Gains and
Short investmen ding at stock-hol stock-hol stock-hol value at
Variety of Code of loss in the Accounti Source of
form of t the ding at the ding at ding at the the end of
securities securities reporting ng subject stock
securities cost(RM beginning beginning the end of end of the the period
(RMB)
B) of the of the the period period (RMB)
period period (% (Share) (%)
(Share)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
Explanation on equity of other listed company hold
□ Applicable √ Not applicable
2. Trust financing, investment of derivatives and entrustment loan
(1)Note
15
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
The company had no trust financing, investment of derivatives or entrustment loan in the reporting.
3. Application of raised proceeds
(1)Overall application of raised proceeds
In 10 thousand Yuan
Overall application of raised proceeds
The company had no raised proceeds, and no situation that the use of raised proceeds before the reporting continued to the
reporting
(2) Situation of committed project of raised proceeds
In 10 thousand Yuan
Amount
Investme
of Project
Projects Total nt
changed committe Total accumula Predicted Profit Reach the feasibility
Amount program
Committed investment or not d investme ted useable realized predicted was
invested
projects &investment (includin investme nt after till the
in this investme date of in this interest changed
of raised fund g nt of adjustme
year year-end
changed raised nt (1) nt till the project year or not hugely or
partially) capitals (3)=(2)/(1
year-end not
)
(2)
Investment project commitment
Investment orientation for fund arising out of plan
Total -- 0 0 0 0 -- -- 0 -- --
Amount, usage and
progress of using for
Not applicable
fund raising out of the
plan
Change of
implementation place
Not applicable
of investment project
of raised capitals
Regulation of
implementation ways
Not applicable
of investment project
of raised capitals
Invested in pre-phases
and replacement for Not applicable
raised fund projects
Temporarily Not applicable
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
supplement for the
current capitals with
idle raised capitals
Amount and reason for
surplus of raised
Not applicable
capitals when
implementing projects
(3)The changed project of raised proceeds
In 10 thousand Yuan
Accumulati Progress of
Whether the
Total on virtual the
Date of the Whether it feasibility
Correspondi amount Virtual amount investment
project Income has come up of the
Project after ng original invested amount input deadline the
coming to achieved in to the project
the change committed after input in the dealing the end of the
scheduled the scheduled changed
project adjustment reporting end of the reporting
usable state reporting income after the
(1) reporting (%)(3)=(2)/
alteration
(2) (1)
Total -- 0 0 0 -- -- 0 -- --
Changing reason, decision procedure
and statement of disclosure(In specific Not applicable
project)
(4)The project of raised proceeds
Summarize of the project of raised
Date of disclosure Index of disclosure
proceeds
4. Main subsidiaries and joint-stock companies analysis
Main subsidiaries and joint-stock companies
In RMB
Main
Industry Registered Operation Operation
Name Type products or Total assets Net assets Net profit
involved capital revenue profit
service
Nanjing Manufactur
Communica
South e and sales 34,205,147. 358,051,028 95,883,636. 303,415,527 10,810,326. 8,663,714.1
Subsidiary tion
Telecommu of data 83 .01 81 .81 33 2
industry
nications communicat
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Company ion
Limited equipment
Nanjing Manufactur
Putian e and sales
Communica
Tianji of 12,000,000. 220,959,860 80,852,743. 110,727,434 3,148,661.5 2,928,310.4
Subsidiary tion
Building intelligent 00 .50 74 .26 2 1
industry
Intelligent building
Ltd. system
Manufactur
e and sales
Nanjing of software
Putian Communica of
10,000,000. 30,028,574. 27,056,018. 19,743,524.
Network Subsidiary tion telecommun 149,096.68 629,649.85
00 45 45 09
Company industry ications,
Ltd. network and
electronic
equipment
Out-door
patch,
sub-line
equipment,
network
Nanjing
box(cube)of
Putian
out-door
Changle Communica
and 10,000,000. 134,056,796 31,565,540. 86,390,827.
Telecommu Subsidiary tion 45,614.85 510,395.67
machinery 00 .23 05 87
nications industry
office,
Equipment
manufacture
Co., Ltd.
and sales of
communicat
ion
electrical
products
manufacture
Nanjing
of
Bada
Communica card-termin
Telecommu 11,301,400. 21,334,081. 2,441,021.5 5,461,476.4 -2,935,491. -2,935,341.
Subsidiary tion al
nications 00 30 6 4 51 51
industry communicat
Equipment
ion
Co., Ltd.
equipment
Putian Export and
Communica
Telecommu import of HKD 200 8,800,439.5 -16,322,106 10,637,246.
Subsidiary tion 140,427.83 140,427.83
nications telecommun million 2 .98 90
industry
(H.K.) Co., ication
18
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Ltd. equipment,
Hi-tech R &
D and
transfer,
technology
trade
Nanjing
Production,
Postel
Communica sales and
Wongzhi 90,190,000. 28,826,546. 37,987,734. 11,004,825.
Subsidiary tion processing 483,585.68 189,896.68
Telecommu 00 85 70 24
industry of electrical
nications
products
Co., Ltd.
Manufactur
Nanjing
e and sales
Putian
Communica of electrical
Information 14,000,000. 12,920,727. 5,066,353.4 5,277,385.3
Subsidiary tion and 218,619.48 183,221.25
Technology 00 17 5 6
industry telecommun
Company
ication
Ltd.
products
Electronic
components
Nanjing
assembly,
Putian
electronic
Telecommu Communica
products, 5,000,000.0 9,987,157.4 3,045,963.4
nication Subsidiary tion 941,917.40 -484,874.80 -227,716.55
telecommun 0 7 9
Technology industry
ication
Company
equipment,
Ltd.
Hi-tech R &
D and sales
Manufactur
Nanjing e and sales
Electrical
Mennekes of plug & USD 520 113,562,017 71,386,431. 50,697,735. 1,990,548.2 1,395,677.8
Subsidiary apparatus
Electrics socket of million .38 00 19 3 6
industry
Co., Ltd. industrial-us
ed
Developme
nt and
Nanjing manufacture
Putian Communica of ODN
Joint-stock 37,088,800. 79,584,786. 34,302,629. 24,754,280. -5,130,421. -5,119,852.
Optical tion products,
company 00 06 28 00 09 16
Network industry optical
Co., Ltd communicat
ion
components
19
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
and RFTS
Developme
nt,
production,
sale,
Nanjing engineering
Putian technical
Communica
Datang Joint-stock service of 5,000,000.0 21,344,532. 8,329,986.2 14,668,405. 1,192,864.2
tion 709,857.75
Information company electronic 0 00 1 87 0
industry
Electronic product;
Co., Ltd. processing
service of
surface
mounting
and welding
5. Major project invested by non-raised funds
In ten thousand Yuan
Amount invested
Total investment Amount invested in
Project accumulative till end Progress Earnings
planned this period
of reporting period
Total 0 0 0 -- --
VI. Prediction of business performance from January – September 2013
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 √ Not applicable
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from
the CPA of this year’s
Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of last year’s
Not applicable
20
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital
reserve in particular
□Applicable √Not applicable
The Company has no profit distribution and shares converted from capital reserve either, which was deliberated and approved in
annual shareholders’ general meeting of 2012
X. Profit distribution plan and transfer of public reserve to common shares in the period
Detail of profit distribution plan or transfer of public reserve to common shares
The Company has no plan of profit distribution or capitalization from capital reserve for fist half year of 2013
XI. In the report period, reception of research, communication and interview
Contents discussed and
Time Place Way Type Reception
material provided
21
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Section V. Iimportant Events
I. Corporate governance
By strictly followed requirement of relevant laws and regulations as well as relevant normative documents of “Company Law”,
“Securities Laws” etc. and China Securities Regulatory Commission on corporate governance requirements, the Company constantly
perfected its corporate governance. Actual corporate governance of the Company shows no difference with the Company Law and
relevant regulations of CSRC until the period-end.
II. Significant lawsuits and arbitrations of the Company
□Applicable √Not applicable
The Company has no significant lawsuits and arbitrations in reporting period
III. Question from media
□ Applicable √ Not applicable
No universal questioned by media in reporting period
IV. Bankruptcy reorganization
In reporting period, the Company has no bankruptcy reorganization occurred..
V. Transaction in assets
1. Acquisition of assets
Ratio of
the profit Relationsh
Whethe
Counterp Trading contribut ip with
Assets Impact on Impact on ra
arty or price (in ed to counterpar Disclosure
acquired Progress operation of the gains/losses of related Disclosure
ultimate 10 listed ty (apply date (Note
or (Note 2) Company (Note the Company transact index
controlli thousand company to related 5)
replaced 3) (Note 4) ion or
ng party Yuan) in total transaction
not
net profit )
(%)
N/A
2. Assets sold
Being deliberated and approved by 2nd meeting of 6th session of the Board and 1st extraordinary shareholders’ general meeting of
22
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2012, the 17.79% equity of Shanghai Yulong Biotech Co., Ltd., the stock-jointly of the Company, and 17.79% equity of Qufu
Yulong Bio-Tech Co., Ltd. were listed for trading in July 2012 with price of RMB 40.6576 million (including RMB 25.0398 million
for Shanghai Yulong and RMB 15.6178 million for Qufu Yulong), no intended assignee collected in previous listing, and no furher
progress in the reporting period
Summary of assets sold Disclosure date Query index for disclosure website of
temporary notice
Listing transfer 17.79% equity of Shanghai 2012-06-26 ”Notice of Equity Transfer for
Yulong Biotech Co., Ltd., the stock-jointly Stock-Jointly Enterprise” published on
of the Company, and 17.79% equity of Juchao Website (www.cninfo.com.cn)
Qufu Yulong Bio-Tech Co., Ltd.
3. Enterprise mergers
In the reporting period, the Company has no enterprise merger.
VI. Implementation of the Company’s equity incentive and its influence
No equity incentive plan implemented in reporting period
VII. Significant related transaction
1. Related transaction connected to routine operations
Related Related Proporti
Available
transacti transacti on in the Related
Related Related market
Related on Related on amount transacti Date of Index of
Related transactio transacti prices of
transaction explanati transacti amount of the on disclosur disclosur
relationship n on similar
parties on on on price (in 10 same settleme e e
type content transactio
price thousan transacti nt mode
ns
setting d Yuan)) on (%)
“Expecte
Stock-jointly
d Related
enterprise of
Telecom Market Transacti
the
product price on with
Company ,Se
Nanjing Putian Procurem Routine
nior executive Bank 2013-03-
Optical Network ent of 2,330.07 2.33% Operatio
of the transfer 26
Co., Ltd products n
Company
Concern
serves as
ed for
Director of
year of
the company
2013”
23
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
publishe
d on
Juchao
Website
“Expecte
d Related
Transacti
on with
Telecom Market Routine
product price Operatio
China Potevio Procurem n
Controlling Bank 2013-03-
Company ent of 1,102.19 1.1% Concern
Shareholders transfer 26
Limited products ed for
year of
2013”
publishe
d on
Juchao
Website
“Expecte
d Related
Transacti
on with
Telecom Market Routine
The product price Operatio
Chengdu Putian
subsidiary of Procurem n
Telecommunicat Bank 2013-03-
the ent of 308.04 0.31% Concern
ions Cable Co., transfer 26
controlling products ed for
Ltd.
shareholder year of
2013”
publishe
d on
Juchao
Website
“Expecte
Telecom Market d Related
product price Transacti
China Potevio on with
Controlling Sales Bank 2013-03-
Company 6,684.08 5.82% Routine
Shareholders goods transfer 26
Limited Operatio
n
Concern
ed for
24
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
year of
2013”
publishe
d on
Juchao
Website
“Expecte
d Related
Putian Transacti
Information on with
Controlling Routine
Technology Sales Telecom Market
shareholder’s Operatio
Research goods product price
subsidiary n
Institution Co., Bank 2013-03-
Ltd. 48.96 0.04% Concern
transfer 26
ed for
year of
2013”
publishe
d on
Juchao
Website
“Expecte
d Related
Transacti
Stock-jointly
on with
enterprise of
Telecom Market Routine
the
product price Operatio
Company ,Se
Nanjing Putian n
nior executive Sales Bank 2013-03-
Optical Network 1.21 Concern
of the goods transfer 26
Co., Ltd ed for
Company
year of
serves as
2013”
Director of
publishe
the company
d on
Juchao
Website
Stock-jointly Telecom Market “Expecte
Nanjing Putian enterprise of product price d Related
Datang the Transacti
Sales Bank 2013-03-
Information Company ,Se 0.24 on with
goods transfer 26
Electronic Co., nior executive Routine
Ltd. of the Operatio
Company n
25
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
serves as Concern
Director of ed for
the company year of
2013”
publishe
d on
Juchao
Website
“Expecte
Subsidiary of
d Related
controlling
Accepti Transacti
shareholder;
ng on with
Director of
leases of Routine
Potevio Hi-tech the Company
land and Market Operatio
Industry serves as Renting
houses price n
Co.,Ltd. Director of
from Bank 2013-03- Concern
the company 547.3 100%
related transfer 26 ed for
(stock-jointly
party year of
enterprise of
2013”
the Company)
publishe
d on
Juchao
Website
11,022.0
Total -- -- -- -- -- -- --
9
Return of major sales N/A
At the beginning of the year, the Company made the prediction on routine
related transactions for year of 2013. The total amount for related transaction
with routine operation concerned was RMB 466.7 million at most, including
purchasing products from related parties amount as RMB 234.2 million at
Report the actual implementation of the normal most, selling products to related parties amount as RMB 218 million at most,
related transactions which were projected about their rent and property charges paid to related parties was RMB 14.5 million at
total amount by types during the reporting period(if most.
applicable) Actual total amount of routine related transactions in first half year of 2013
was RMB 110.2209 million; including purchasing products from related
parties was RMB 37.403 million, selling products to relate party was RMB
67.3449 million and the rent for first half year was RMB 5.473 million within
the expected amount.
Reason for the great difference between trade price
N/A
and market reference price (if applicable)
2. Related transactions by assets acquisition and sold
Related Related Related Related Related Book Market Transfer Related Trading Date of Index of
26
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
transacti relations transacti transacti transacti value of Assessm fair price (in transacti profit disclosur disclosur
on hip on on on transfer ent value value (in 10 on and loss e e
parties type content explanati assets (in of 10 thousand settleme (in 10
on on 10 transfer thousand Yuan) nt mode thousand
price thousand assets (in Yuan) Yuan)
setting Yuan) 10
thousand
Yuan)
N/A
3. Main related transactions of mutual foreign investment
Mutual Total assets Net assets of Net profit of
Main Registered
Mutual investment’s Name of of companies companies companies
Related business of capital of
investment pricing companies invested (in invested (in invested (in
relationship companies companies
party principle invested 10 thousand 10 thousand 10 thousand
invested invested
Yuan) Yuan) Yuan)
N/A
4. Contact of related credit and debt
Whether exist non-operating contact of related credit and debt or not
□ Yes √ No
Whether exist Balance of Amount of the
Balance at
non-operation period-begin period
Related Type of credit Forming period-end (in
Related party al capital (in 10 occurrence (in
relationship and debt reason 10 thousand
occupying thousand 10 thousand
Yuan)
Yuan) Yuan)
Creditor’s Sale goods No
China Potevio Controlling rights of
2,045.98 2,479.46 4,525.44
Company Limited shareholder related party
receivable
Creditor’s Sale goods No
Shanghai Putian Controlling
rights of
Youtong Technology shareholder’s 1,334.17 1,334.17
related party
Co., Ltd. subsidiary
receivable
Creditor’s Sale goods No
Shanghai Putian Controlling
rights of
Network Technology shareholder’s 167.75 -134.33 33.42
related party
Co., Ltd. subsidiary
receivable
Stock-jointly Sale goods No
Creditor’s
enterprise of
Nanjing Putian Optical rights of
the 0.61 0.61
Network Co., Ltd related party
Company ,Sen
receivable
ior executive
27
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
of the
Company
serves as
Director of the
company
Creditor’s Sale goods No
Putian Information Controlling
rights of
Technology Research shareholder’s 1.66 -1.66
related party
Institution Co., Ltd. subsidiary
receivable
Creditor’s Sale goods No
China Potevio Controlling rights of
50 -50
Company Limited shareholder related party
receivable
Subsidiary of Sale goods No
controlling
shareholder;
Director of the
Company Debts of
Nanjing Putian Optical
serves as related party 5,308.09 -205.13 5,102.96
Network Co., Ltd
Director of the payable
company
(stock-jointly
enterprise of
the Company)
Debts of Sale goods No
China Potevio Controlling
related party 917.79 693.43 1,611.22
Company Limited shareholder
payable
Controlling Debts of Sale goods No
Nanjing Putian Honyar
shareholder’s related party 38.86 -22.98 15.88
Apparatus Co., Ltd.
subsidiary payable
Subsidiary of
controlling
shareholder;
Director of the
Company Debts of
Potevio Hi-tech
serves as related party Rent No 142.25 -142.25
Industry Co.,Ltd
Director of the payable
company
(stock-jointly
enterprise of
the Company)
Nanjing Putian Datang Stock-jointly Debts of
Information Electronic enterprise of related party Sale goods No 20.21 -20.21
Co., Ltd. the payable
28
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Company ,Sen
ior executive
of the
Company
serves as
Director of the
company
Debts of
China Potevio Controlling
related party Loan No 815.84 815.84
Company Limited shareholder
payable
Influence on Company’s management Related credit and debt were the normal business transactions between the Company and the
achievement and financial situation related parties, and no main influence on Company’s management achievement and
from related credit and debt financial situation in the reporting period
5. Other insignificant related transactions
As of reporting period, 49.64 percnet equity of Ptevio Hi-Tech Industry Co., Ltd. held by the Company was pledged to China Potevio
Company Limited, controlling shareholder of the Company, as a counter-guarantee for RMB 84 million loans for the Company.
Website for temporary disclosure of the significant related transaction
Announcement Date of disclosure Website for disclosure
”Notice of Counter-guarantee Offer to
2010-08-25 Juchao Website(www.cninfo.com.cn)
Controlling Shareholder of the Company”
VIII. Significant Contracts and its performance
1. Trust, contracting and lease
(1) Trust
Explanation on trust
In reporting period, the Company has no other company’s assets entrusted by the Company or assets of the Company trusted from
other company
Items generated over 10% gains/losses in total profit in reporting period for the Company
□ Applicable √ Not applicable
(2) Contract
Explanation on contract
In reporting period, the Company has no assets contract to other company or contracting other company’s assets
29
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Items generated over 10% gains/losses in total profit in reporting period for the Company
□ Applicable √ Not applicable
(3) Leasing
Explanation on leasing
In reporting period, the Company rented lands and property from Potevio Hi-tech Industry Co., Ltd for purpose of production and
office, leasing charge of RMB 5.47million Yuan..
Items generated over 10% gains/losses in total profit in reporting period for the Company
√Applicable □Not applicable
Amount
involved Leasing Determine Consist of
Influence Related
Contract-o Assets in Leasing Leasing profit (10 basis for related
Lessee on the relationshi
ut party leasing leasing(10 date from end at thousand leasing transaction
company p
thousand Yuan) profit or not
Yuan)
The land
under the
related
transaction
s
Subsidiary
agreement
of
was the
controlling
office and
shareholde
production
r; director
location of
of the
the
Nanjing Company
Potevio Company,
Putian has serves
Hi-tech 2013-01-0 2013-12-3 Market the related
Telecomm Real estate 14,138.26 -547.3 Yes as director
Industry 1 1 price transaction
unications of the
Co.,Ltd benefit to
Co., ltd. aforesaid
guarantee
company(s
the normal
tock
operation
jointly
developme
enterprise
nt of the
of the
Company.
Company)
Rent in
reporting
period was
RMB
5.473
30
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
million
2. Guarantee Providing
In ten thousand Yuan
Guarantee offered by the Company(excluding the guarantee offered to the subsidiaries)
Happening Guaranty
Relevant Date (the date whether
Actual
notice Guaranty when the Type of Term of Complete offered to
Name of the debtor guarantee
disclosure limit guaranty guaranty guaranty d or not a related
amount
date agreement was party or
signed) not
Ended as
correspondin
g loans paid
which was
secured by
China
Potevio
since
September
China Potevio
2010-08-25 8,400 2010-09-19 8,400 Pledge 2012 (note: No Yes
Company Limited
this
guarantee is
a counter
guarantee
that the
Company
offers to
China
Potevio)
Total amount of external Total actual amount of
guarantee limit approved during 0 external guarantee during the 0
the report period(A1) report period(A2)
Total amount of external Total actual amount of
guarantee limit approved at 8,400 external guarantee at 8,400
period-end(A3) period-end(A4)
Guaranty offered to the subsidiaries
Relevant Happening Guaranty
Actual
notice Guaranty Date (the date Type of Term of Complete whether
Name of the debtor guarantee
disclosure limit when the guaranty guaranty d or not offered to
amount
date guaranty a related
31
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
agreement was party or
signed) not
Nanjing Putian
Jointly 2012.9.16-2
Tianji Building 2012-03-20 2,000 1,000 No No
liability 013.9.16
Intelligent Co., Ltd.
Nanjing Putian
Jointly 2012.10.9-2
Tianji Building 2012-03-20 2,000 1,000 No No
liability 013.10.9
Intelligent Co., Ltd.
Nanjing Southern
Jointly 2012.12.5-2
Telecommunication 2012-03-20 6,000 2,000 No No
liability 013.12.4
Co., Ltd.
Nanjing Southern
Jointly 2012.8.1-20
Telecommunication 2012-03-20 6,000 2,000 No No
liability 13.7.31
Co., Ltd.
Total actual amount of
Total amount of guarantee limit
guarantee limit for
approved for subsidiaries in the 8,000 0
subsidiaries in the report
report period(B1)
period(B2)
Total amount of guarantee limit Total actual amount of
approved for subsidiaries at 8,000 guarantee limit for 6,000
period-end(B3) subsidiaries at period-end(B4)
Total guarantee of the Company (Including the above mentioned guarantees)
Total amount of guarantee limit
Total amount of guarantee in
approved in the report 8,000 0
the report period(A2+B2)
period(A1+B1)
Total actual amount of
Total amount of guarantee limit
16,400 guarantee at 14,400
approved at period-end(A3+B3)
period-end(A4+B4)
The proportion of the total actual amount of guarantee in the net
38.36%
assets of the Company (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
4,000
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) 12,400
Explanations on possibly bearing joint and several liquidating Not applicable
32
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
responsibilities for undue guarantees (if applicable)
Explanation on guarantee provided outside against regulations
Not applicable
(if applicable)
Explanation on guarantee with way of complex
3. Other significant contract
Book Appraisal
value of value for
Base date
amount assets Trading Whether Implemen
Company Date of Appraisal of assets
Name of involved involved price (in constitute Related tation
entered signing agency (if evaluatio Pricing
counterpa in in 10 related relationsh ended as
into a the applicable n (if principle
rt contract contract(i thousand transactio ip reporting
contract contract ) applicable
(in 10 n 10 Yuan) n or not period
)
thousand thousand
Yuan) Yuan)
Nil.
4. Other significant transactions
Nil.
IX. Commitments from the Company or shareholders (with over 5% shares held) in or
continued to reporting period
Commitment Dated for Commitment
Commitments Contents Implementation
party commitment term
Share Merger Reform N/A
Commitments in report of acquisition or
N/A
equity change
Commitments in assets reorganization N/A
Commitments in initial public offering or
N/A
refinancing
other commitments to minority
N/A
shareholders of the Company
Completed on time or not -
Detail reasons for un-complement and
Not applicable
further plan (if applicable)
X. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
33
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
XI. Penalty and rectification
Type of
Conclusion (if Index of
Name Type Reasons investigation and Disclosure date
applicable) disclosure
penalty
Explanation on rectification
□Applicable √ Not applicable
XII. Explanation on other significant events
Index of importan event that disclosed in reproting period:
Notice Query index of website appoint for
Disclosure date Content
Serial information disclosure
Resolution Notice of 9th Meeting of 6th
2013-001 2013.3.26 Juchao Website (www.cninfo.com.cn)
Session of the Board
Resolution Notice of 4th Meeting of 6th
2013-002 2013.3.26 Juchao Website (www.cninfo.com.cn)
Session of Supervisory Committee
Notice of Annual Shareholders’ General
2013-003 2013.3.26 Juchao Website (www.cninfo.com.cn)
Meeting of 2012
2013-004 2013.3.26 Summary of Annual Report 2012 Juchao Website (www.cninfo.com.cn)
Withdrawal of Assets Depreciation
2013-005 2013.3.26 Juchao Website (www.cninfo.com.cn)
Reserves for year of 2012
Expected Routine Related Transaction
2013-006 2013.3.26 Juchao Website (www.cninfo.com.cn)
for year of 2013
Guarantee Offer to Controlling
2013-007 2013.3.26 Juchao Website (www.cninfo.com.cn)
Subsidiary
2013-008 2013.4.12 Performance Forecast for 1Q of 2013 Juchao Website (www.cninfo.com.cn)
2013-009 2013.4.25 Text of 1Q Report for year of 2013 Juchao Website (www.cninfo.com.cn)
Resolution Notice of Annual
2013-010 2013.4.27 Juchao Website (www.cninfo.com.cn)
Shareholders’ General Meeting of 2012
Resolution Notice of 11th Meeting of 6th
2013-011 2013.6.6 Juchao Website (www.cninfo.com.cn)
Session of the Board
Performance Forecast for Semi-annual of
2013-012 2013.7.11 Juchao Website (www.cninfo.com.cn)
2013
Resolution Notice of 12th Meeting of 6th
2013-013 2013.7.16 Juchao Website (www.cninfo.com.cn)
Session of the Board
Guarantee Offer to Stock-Jointly
2013-014 2013.7.16 Juchao Website (www.cninfo.com.cn)
Subsidiary
34
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Convening the First Extraordinary
2013-015 2013.7.16 Shareholders’ General Meeting for year Juchao Website (www.cninfo.com.cn)
of 2013
Suggestive Notice of Convening the First
2013-016 2013.8.3 Extraordinary Shareholders’ General Juchao Website (www.cninfo.com.cn)
Meeting for year of 2013
Resolution Notice of 12th Meeting of 6th
2013-017 2013.8．8 Juchao Website (www.cninfo.com.cn)
Session of the Board
Convening the Second Extraordinary
2013-018 2013.8.8 Shareholders’ General Meeting for year Juchao Website (www.cninfo.com.cn)
of 2013
Resolution Notice of First Extraordinary
2013-019 2013.8.9 Shareholders’ General Meeting for year Juchao Website (www.cninfo.com.cn)
of 2013
Resolution Notice of Second
2013-020 2013.8.24 Extraordinary Shareholders’ General Juchao Website (www.cninfo.com.cn)
Meeting for year of 2013
35
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitalizat
New Proportion
Proportion Bonus ion of
Amount shares Others Subtotal Amount
(%) shares public (%)
issued
reserve
115,000,0 115,000,0
I. Unlisted shares 53.49% 53.49%
00 00
115,000,0 115,000,0
1. Sponsor’s shares 53.49% 53.49%
00 00
Including: state-owned 115,000,0 115,000,0
53.49% 53.49%
shares 00 00
100,000,0 100,000,0
II. Listed shares 46.51% 46.51%
00 00
2. Domestically listed 100,000,0 100,000,0
46.51% 46.51%
foreign shares 00 00
215,000,0 215,000,0
III. Total shares 100% 100%
00 00
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer for shares changed
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
Changes of total shares and shareholders structure as well as explanation on changes of assets and liability structure
□ Applicable √ Not applicable
II. Number of shares and shares held
In Share
Total shareholders at period-end 12,987
Shareholders with over 5% shares held
36
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Amount Amount Number of share pledged/frozen
Number
of of
of Changes
holding holding
Nature of Proportion of shares in
Shareholders unlisted listed
shareholder shares held (%) held at reportin State of share Amount
circulati circulati
period-e g period
on on
nd
shares shares
China Potevio
State-owned 115,000, 115,000,
Company 53.49% 0 0
corporate 000 000
Limited
GUOTAI
JUNAN
Overseas 9,217,9 5,998,0 9,217,9
SECURITIES(H 4.29% 0
corporate 87 44 87
ONGKONG)
LIMITED
Shanghai H.K. Overseas 6,264,4 6,264,4
2.91% 214,929 0
Wanguo Security corporate 29 29
Overseas natural 1,289,6 1,289,6
CHAN KEUNG 0.6% 0 0
person 00 00
Domestic nature
Wang Feifei 0.27% 584,408 -3,600 0 584,408
person
Domestic nature
Shu Jianping 0.23% 500,500 0 0 500,500
person
Domestic nature
Zhang Wei 0.22% 473,043 246,400 0 473,043
person
Domestic nature Unknow
Cai Hanchuan 0.19% 413,573 0 413,573
person n
Domestic nature
Duan Ruifen 0.17% 374,100 81,000 0 374,100
person
Domestic nature
Hu Jun 0.17% 372,946 197,946 0 372,946
person
Strategy investors or general
corporate becomes top 10
Not applicable
shareholders due to rights issued (if
applicable)(Note 3)
Explanation on associated Among the top ten shareholders, China Potevio Company Limited is neither a related party
relationship among the aforesaid nor a person acting in concert with the others. It’s unknown by the Company whether there
shareholders are related parties or persons acting in concert among the other shareholders.
Particulars about the shares held by the top ten unrestricted shareholders
Shareholders Amount of circulated shares held at period-end Type of shares
37
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Type Amount
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 9,217,987 listed foreign 9,217,987
LIMITED shares
Domestically
Shanghai H.K. Wanguo Security 6,264,429 listed foreign 6,264,429
shares
Domestically
CHAN KEUNG 1,289,600 listed foreign 1,289,600
shares
Domestically
Wang Feifei 584,408 listed foreign 584,408
shares
Domestically
Shu Jianping 500,500 listed foreign 500,500
shares
Domestically
Zhang Wei 473,043 listed foreign 473,043
shares
Domestically
Cai Hanchuan 413,573 listed foreign 413,573
shares
Domestically
Duan Ruifen 374,100 listed foreign 374,100
shares
Domestically
Hu Jun 372,946 listed foreign 372,946
shares
Domestically
Li Zhaohua 348,006 listed foreign 348,006
shares
Expiation on associated relationship
or consistent actors within the top 10 It is unknown whether the shareholders just mentioned belong to consistent actors or have
un-restrict shareholders and between associated relationship.
top 10 un-restrict shareholders and
top 10 shareholders
Explanation on shareholders
involving margin business (if Not applicable
applicable)(note 4)
Whether has a buy-back agreement dealing in reporting period
38
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
□Yes √No
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period
□ Applicable √ Not applicable
39
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Section VII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report
2012.
II. Changes of directors, supervisors and senior executives
Name Title Type Date Reason
Jiang Hanbin Deputy GM Dismissal 2013-03-22 For the change of job
Li Tong Deputy GM Dismissal 2013-06-05 For the change of job
40
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Section VIII. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
41
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
1、Consolidated Balance Sheet
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. 30 June 2013 Monetary Unit:
RMB Yuan
Items 30 June 2013 31 December 2012
Current assets
Monetary funds 300,748,252.81 452,015,249.64
Settlement provisions
Capital lent
Held for trading financial assets
Notes receivable 12,808,703.63 18,194,220.77
Accounts receivable 883,795,031.05 716,775,318.61
Advances to suppliers 40,317,225.28 38,396,759.04
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 41,711,498.02 51,838,634.52
Purchase restituted finance asset
Inventories 463,072,334.66 463,851,045.50
Long-term debt investment due within a year
Other current assets
Total current assets 1,742,453,045.45 1,741,071,228.08
Non-current assets
Granted loans and advances
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 211,770,912.73 208,738,265.38
Investment property 4,504,532.07 4,607,748.03
Fixed assets 110,895,022.02 113,722,780.45
Construction in progress 8,592,062.87 2,580,345.07
Construction materials
Fixed assets held for disposal
Productive biological assets
Petrol assets
Intangible assets 19,111,365.27 19,454,384.86
Development costs
Goodwill
Long-term prepayments
Deferred tax assets
Other non-current assets
42
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Total non-current assets 354,873,894.96 349,103,523.79
TOTAL ASSETS 2,097,326,940.41 2,090,174,751.87
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
43
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
1、Consolidated Balance Sheet（continued）
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2013 Monetary Unit:
RMB Yuan
Items 30 June 2013 31 December 2012
Current liabilities Items 507,300,000.00 493,100,000.00
Short-term loans
Loan from central bank
Absorbing deposit and interbank deposit
Tradable financial liabilities
Notes payable 60,000,000.00 107,000,000.00
Accounts payable 940,257,551.79 850,781,298.82
Advances from customers 67,747,666.52 100,440,303.64
Selling financial asset of repurchase
Commission charge and commission payable
Accrued payroll 15,767,838.20 14,751,177.51
Taxes payable -4,919,741.64 10,368,942.32
Interest payable
Dividend payable 2,181,334.40
Other payables 46,818,256.57 46,008,707.65
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 1,632,971,571.44 1,624,631,764.34
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 1,633,051,689.44 1,624,711,882.34
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
44
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Provision of general risk
Undistributed profit -22,107,005.75 -19,387,788.41
Balance difference of foreign currency translation -3,477,747.36 -3,770,851.82
Total shareholder’s equity attributable to parent Company
375,379,340.51 377,805,453.39
Minority interests 88,895,910.46 87,657,416.14
Total shareholder’s equity 464,275,250.97 465,462,869.53
Total liabilities and shareholder’s equity 2,097,326,940.41 2,090,174,751.87
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
45
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2、Balance Sheet
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. 30 June 2013 Monetary Unit:
RMB Yuan
Items 30 June 2013 31 December 2012
Current assets
Monetary funds 178,755,370.14 288,600,512.42
Tradable financial assets
Notes receivable 5,379,186.50 13,092,690.25
Accounts receivable 577,542,391.31 448,222,395.54
Advances to suppliers 21,892,944.05 26,394,805.44
Interest receivable
Dividend receivable
Other receivables 58,638,204.25 56,482,885.89
Inventories 238,041,739.78 233,524,552.25
Long-term debt investment due within a year
Other current assets
Total current assets 1,080,249,836.03 1,066,317,841.79
Non-current assets
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 377,612,878.30 374,475,209.77
Investment property
Fixed assets 30,191,223.04 31,668,944.30
Construction in progress 8,592,062.87 2,580,345.07
Construction materials
Fixed assets held for disposal
Productive biological assets
Petrol assets
Intangible assets 4,133,689.46 4,521,694.93
Development costs
Goodwill
Long-term prepayments
Deferred tax assets
Other non-current assets
Total non-current assets 420,529,853.67 413,246,194.07
TOTAL ASSETS 1,500,779,689.70 1,479,564,035.86
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 46 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2、Balance Sheet（continued）
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. 30 June 2013 Monetary Unit:
RMB Yuan
Current liabilities
30 June 2013 31 December 2012
Items
Short-term loans 396,000,000.00 391,800,000.00
Tradable financial liabilities
Notes payable 60,000,000.00 147,000,000.00
Accounts payable 577,562,775.18 485,366,568.58
Advances from customers 25,260,969.82 37,300,025.81
Accrued payroll 5,874,232.08 5,320,641.08
Taxes payable 3,771,667.33 5,119,329.52
Interest payable
Dividend payable
Other payables 153,419,960.59 115,657,829.49
Long-term liabilities due within a year
Other current liabilities
Total current liabilities 1,221,889,605.00 1,187,564,394.48
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 1,221,969,723.00 1,187,644,512.48
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
Reasonable reserve
Surplus reserve 589,559.76 589,559.76
Provision of general risk
Undistributed profit -109,196,892.87 -96,087,336.19
Foreign currency translation differences
Total shareholder’s equity 278,809,966.70 291,919,523.38
Total liabilities and shareholder’s equity 1,500,779,689.70 1,479,564,035.86
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 47 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
3、Consolidated Income Statement
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit:
RMB Yuan
Items Jan. to Jun. 2013 Jan. to Jun. 2012
I. Total operating income Items 1,207,557,538.82 1,349,963,182.82
Including: Operating income 1,207,557,538.82 1,349,963,182.82
Interest income
Insurance gained
Commission charge and commission income
II.Total operating cost 1,204,885,342.50 1,337,881,996.51
Including: Operating cost 1,043,008,171.55 1,167,040,803.45
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Sales tax and surcharge 4,694,575.67 4,285,765.91
Sales expenses 82,273,548.91 85,918,634.36
Administration expenses 62,829,331.87 61,694,140.49
Financial expenses 11,488,031.64 16,942,792.36
Losses of devaluation of asset 591,682.86 1,999,859.94
Add: Changing income of fair value(Loss is listed
with“-”)
Investment income (Loss is listed with “-”) -1,883,203.49 1,462,045.66
Including: Investment income on affiliated
Company and joint venture -1,862,331.47 1,462,045.66
and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) 788,992.83 13,543,231.97
Add: Non-operating income 1,927,667.56 1,206,456.92
Less: Non-operating expense 600,115.85 383,261.27
Including: Disposal loss of non-current asset 42,279.87
IV. Total Profit (Loss is listed with “-”) 2,116,544.54 14,366,427.62
Less: Income tax 3,597,267.56 2,022,892.44
V. Net profit (Net loss is listed with “-”) -1,480,723.02 12,343,535.18
Including: the merging parties to achieve a net
profit before the merger
Net profit attributable to owner’s equity of parent
-2,719,217.34 6,038,203.37
Company
Minority shareholders’ gains and losses 1,238,494.32 6,305,331.81
VI. Earnings per share -- --
- 48 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
i. Basic earnings per share -0.013 0.028
ii. Diluted earnings per share -0.013 0.028
VII. Other comprehensive income 293,104.46 -93,168.18
VIII.Total comprehensive income -1,187,618.56 12,250,367.00
Total comprehensive income attributable to owners of
-2,426,112.88 5,945,035.19
the parent company the parent company
Total comprehensive income attributable to
1,238,494.32 6,305,331.81
minority interests
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 49 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
4、Income Statement
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit:
RMB Yuan
Items Jan. to Jun. 2013 Jan. to Jun. 2012
I. Sales Income 725,615,062.25 894,036,249.73
Less: Business costs 655,279,644.09 818,400,146.13
Sales tax and surcharges 2,658,463.54 1,452,402.91
Sales expenses 43,577,265.99 45,496,592.28
Administration expenses 25,456,357.31 24,016,497.89
Financial expenses 9,674,355.31 14,174,636.35
Losses of devaluation of asset 34,764.05 1,008,607.19
Add: Changing income of fair value(Loss is listed
with “-”)
Investment income (Loss is listed with “-”) -1,862,331.47 6,025,223.39
Including: Investment income on affiliated
-1,862,331.47 1,448,523.39
Company and joint venture
II. Operating profit (Loss is listed with “-”) -12,928,119.51 -4,487,409.63
Add: Non-operating income 78,240.00 172,583.98
Less: Non-operating expense 259,677.17 290,929.87
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) -13,109,556.68 -4,605,755.52
Less: Income tax
IV. Net profit (Net loss is listed with “-”) -13,109,556.68 -4,605,755.52
V. Earnings per share -- --
i. Basic earnings per share -0.061 -0.021
ii. Diluted earnings per share -0.061 -0.021
VI.Other comprehensive income
VII. Total comprehensive income -13,109,556.68 -4,605,755.52
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 50 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
5、Consolidated Cash Flow Statement
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit:
RMB Yuan
Items Jan. to Jun. 2013 Jan. to Jun. 2012
I. Cash flows arising from operating activities:
Cash received from the sale of goods or rendering of services 1,218,515,488.00 1,409,020,267.18
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 858,508.30 779,939.18
Other cash receipts relating to operating activities 14,337,476.96 69,462,678.66
Sub-total of cash inflows arising from operating activities activities 1,233,711,473.26 1,479,262,885.02
Cash paid for goods and services 1,122,929,225.96 1,288,194,199.25
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 90,660,354.19 92,044,035.37
Payments of all types of taxes 60,343,173.64 53,868,053.64
Other cash payments relating to operating activities 95,034,007.42 73,366,161.31
Subtotal of cash outflow arising from operating activities 1,368,966,761.21 1,507,472,449.57
Net cash flows arising from operating activities -135,255,287.95 -28,209,564.55
II. Cash flows arising from investing activities
Cash received from recovering investment
Cash received from investment income
Net cash received from the sale of fixed assets, intangible assets and other long-term
36,352.80 2,006,618.45
assets 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 36,352.80 2,006,618.45
Cash paid for purchasing fixed, intangible and other long-term assets 9,436,683.10 8,629,668.88
Cash paid for investment 5,000,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 14,436,683.10 8,629,668.88
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Net cash flows arising from investing activities -14,400,330.30 -6,623,050.43
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 176,000,000.00 100,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities 80,000,000.00
Subtotal of cash inflow from financing activities 176,000,000.00 180,000,000.00
Cash paid for settling debts 161,800,000.00 130,200,000.00
Cash paid for dividend and profit distributing or interest paying 13,618,333.70 23,801,804.46
Including: Dividend and profit of minority shareholder paid by subsidiaries
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 175,418,333.70 154,001,804.46
Net cash flows arising from financing activities 581,666.30 25,998,195.54
IV. Influence on cash due to fluctuation in exchange rate 128,675.35 13,427.08
V. Net increase of cash and cash equivalents -148,945,276.60 -8,820,992.36
Add: Balance of cash and cash equivalents at the period -begin 429,693,529.41 310,453,749.89
VI. Balance of cash and cash equivalents at the period -end 280,748,252.81 301,632,757.53
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 52 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
6、Cash Flow Statement
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit:
RMB Yuan
Items Jan. to Jun. 2013 Jan. to Jun. 2012
I. Cash flows arising from operating activities:
Cash received from the sale of goods or rendering of services 715,324,074.82 878,806,774.63
Refunds of taxes
Other cash receipts relating to operating activities 37,379,114.46 55,487,231.32
Sub-total of cash inflows arising from operating activities 752,703,189.28 934,294,005.95
Cash paid for goods and services 717,541,302.03 854,648,154.34
Cash paid to and on behalf of employees 47,384,233.37 44,259,446.77
Payments of all types of taxes 27,750,342.93 18,139,026.55
Other cash payments relating to operating activities 51,173,375.01 57,750,864.41
Subtotal of cash outflow arising from operating activities 843,849,253.34 974,797,492.07
Net cash flows arising from operating activities -91,146,064.06 -40,503,486.12
II. Cash flows arising from investing activities
Cash received from recovering investment
Cash received from investment income 4,576,700.00
Net cash received from the sale of fixed assets, intangible
assets and other long-term assets long-term assets 371,150.00
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
Cash paid for purchasing fixed, intangible and other long-term
assets 5,377,085.19 3,332,652.26
Cash paid for investment 5,000,000.00
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 10,377,085.19 3,332,652.26
Net cash flows arising from investing activities -10,377,085.19 1,615,197.74
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 136,000,000.00 64,000,000.00
Cash received from bonds issued
Other cash received concerning financing activities 80,000,000.00
Subtotal of cash inflow from financing activities 136,000,000.00 144,000,000.00
Cash paid for settling debts 131,800,000.00 80,000,000.00
Cash paid for dividend and profit distributing or interest paying 11,240,332.77 14,861,337.46
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 143,040,332.77 94,861,337.46
Net cash flows arising from financing activities -7,040,332.77 49,138,662.54
IV. Influence on cash due to fluctuation in exchange rate 92,336.87 -209,185.55
V. Net increase of cash and cash equivalents -108,471,145.15 10,041,188.61
Add: Balance of cash and cash equivalents at the period -begin 267,226,515.29 193,897,034.53
VI. Balance of cash and cash equivalents at the period -end 158,755,370.14 203,938,223.14
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 53 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
7、Consolidated Statement of Changes in Owners’ Equity
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit: RMB Yuan
Amount for period from Jan. to June 2013
Shareholders’ equity attributable to the parent Company
Items Total
General Minority
Capital Less:Treasury Reasonable Surplus Undistributed shareholders’
Share capital risk Others interests
reserves Stock reserve reserves profit equity
provision
I. Balance at the end of the last year 215,000,000.00 185,374,533.85 589,559.77 -19,387,788.41 -3,770,851.82 87,657,416.14 465,462,869.53
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this year 215,000,000.00 185,374,533.85 589,559.77 -19,387,788.41 -3,770,851.82 87,657,416.14 465,462,869.53
III. Increase/ Decrease in this year (Decrease is listed with “-”) -2,719,217.34 293,104.46 1,238,494.32 -1,187,618.56
(I) Net profit -2,719,217.34 1,238,494.32 -1,480,723.02
(II) Other comprehensive income 293,104.46 293,104.46
Subtotal of (I) and (II) -2,719,217.34 293,104.46 1,238,494.32 -1,187,618.56
(III) Shareholders’ contributions and
reduction in capital
1. Capital contribution from owners
2. Share-based payment recognised in shareholders' equity
3. Others
(IV) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk provisions
- 54 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
3. Distribution for shareholders
4. Others
(V)Transfer within shareholders' equity
1. Capitalisation of capital reserve
2. Capitalisation 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 year 215,000,000.00 185,374,533.85 589,559.77 -22,107,005.75 -3,477,747.36 88,895,910.46 464,275,250.97
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 55 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
7、Consolidated Statement of Changes in Owners’ Equity (continued)
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit: RMB
Yuan
Amount for last year
Shareholders’ equity attributable to the parent Company
Items Total shareholders’
General Minority interests
Reasonabl Surplus
Share capital risk Undistributed profit Others equity
e reserve reserves
provision
I. Balance at the end of the last year 215,000,000.00 185,374,533.85 589,559.77 -24,923,018.93 -3,767,746.21 86,650,225.12 458,923,553.60
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this year 215,000,000.00 185,374,533.85 589,559.77 -24,923,018.93 -3,767,746.21 86,650,225.12 458,923,553.60
III. Increase/ Decrease in this year (Decrease
5,535,230.52 -3,105.61 1,007,191.02 6,539,315.93
is listed with “-”)
(I) Net profit 5,535,230.52 13,106,133.92 18,641,364.44
(II) Other comprehensive income -3,105.61 -3,105.61
Subtotal of (I) and (II) 5,535,230.52 -3,105.61 13,106,133.92 18,638,258.83
(III) Shareholders’ contributions and
reduction in capital
1. Capital contribution from owners
2. Share-based payment recognised in
shareholders' equity
3. Others
(IV) Profit distribution -12,098,942.90 -12,098,942.90
1. Withdrawal of surplus reserves
- 56 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2. Withdrawal of general risk provisions
3. Distribution for shareholders -12,098,942.90 -12,098,942.90
4. Others
(V)Transfer within shareholders' equity
1. Capitalisation of capital reserve
2. Capitalisation 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 year 215,000,000.00 185,374,533.85 589,559.77 -19,387,788.41 -3,770,851.82 87,657,416.14 465,462,869.53
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 57 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
8、Statement of Changes in Owners’ Equity
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit: RMB
Yuan
Amount for period from Jan. to Jun. 2013
Items General
Less:Treasury Reasonable Undistributed Total
Share capital Capital reserves Surplus reserves risk
Stock reserve profit shareholders’equity
provision
I. Balance at the end of the last year 215,000,000.00 172,417,299.81 589,559.76 -96,087,336.19 291,919,523.38
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this year 215,000,000.00 172,417,299.81 589,559.76 -96,087,336.19 291,919,523.38
III. Increase/ Decrease in this year (Decrease is
-13,109,556.68 -13,109,556.68
listed with “-”)
(I) Net profit -13,109,556.68 -13,109,556.68
(II) Other comprehensive income
Subtotal of (I) and (II) -13,109,556.68 -13,109,556.68
(III) Shareholders’ contributions and reduction
in capital
1. Capital contribution from owners
2. Share-based payment recognised in
shareholders' equity
3. Others
(IV) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk provisions
3. Distribution for shareholders
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
4. Others
(V)Transfer within shareholders' equity
1. Capitalisation of capital reserve
2. Capitalisation 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 year 215,000,000.00 172,417,299.81 589,559.76 -109,196,892.87 278,809,966.70
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 59 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
8、Statement of Changes in Owners’ Equity（continued）
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit: RMB
Yuan
Amount for last year
Items General
Less:Treasury Reasonable Undistributed Total
Share capital Capital reserves Surplus reserves risk
Stock reserve profit shareholders’equity
provision
I. Balance at the end of the last year 215,000,000.00 172,417,299.81 589,559.76 -83,353,497.28 304,653,362.29
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this year 215,000,000.00 172,417,299.81 589,559.76 -83,353,497.28 304,653,362.29
III. Increase/ Decrease in this year (Decrease is
-12,733,838.91 -12,733,838.91
listed with “-”)
(I) Net profit -12,733,838.91 -12,733,838.91
(II) Other comprehensive income 0.00
Subtotal of (I) and (II) -12,733,838.91 -12,733,838.91
(III) Shareholders’ contributions and reduction
in capital
1. Capital contribution from owners
2. Share-based payment recognised in
shareholders' equity
3. Others
(IV) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk provisions
3. Distribution for shareholders
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
4. Others
(V)Transfer within shareholders' equity
1. Capitalisation of capital reserve
2. Capitalisation 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 year 215,000,000.00 172,417,299.81 589,559.76 0.00 -96,087,336.19 291,919,523.38
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 61 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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 2013, 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, research and manufacture vehicle electronics, sale of video conference system, and providing the related
after-sales service ,including installation and maintenance and repairmen of equipments .Design of telecom
information net project and computer information systematic project, and 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 “‘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 2013, operational achievements and cash flow of the company for
1 January 2013 to 30 June 2013 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”).
5. Accounting treatment of Business Combination
Business combination includes combination of entities or businesses under common control and combination under
different control.
(1) Combination under common control
An acquirer of a business combination under common control recognizes the assets acquired and liabilities assumed
at their acquisition-date carrying values. 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.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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, combination
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. Combination cost
includes consideration transferred and transaction costs that are directly attributable to the acquisition. The acquirer
shall recognize the fair value of contingent consideration at acquisition date as part of the consideration transferred in
exchange for the acquiree.
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 combination 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 combination cost, before recognizing a gain on a bargain purchase, the company will reassess whether it has
correctly measured all of the identifiable assets acquired, all of the liabilities and contingent liabilities assumed and
combination cost. The difference is recorded to profit or loss in the current period if the fair value of the net
identifiable assets acquired exceeds combination cost after the review.
6. Basis of Preparation of 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.
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.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
8. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount pursuant
to the spot exchange rate as of the business day.
As at the balance sheet date, monetary items expressed by foreign currency are converted into RMB pursuant to the
spot exchange rate, for prompt exchange rate on the spot rate and the time of initial recognition or before the date of
the balance sheet at the spot exchange rate and produce different exchange balance, except a qualified foreign
currency exchange balance specifically borrowed in the capitalization period shall be included in the relevant asset
costs of capitalization of the, all included in the current profits and losses.
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, recognition and measurement of financial instruments
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
The financial assets or financial liabilities initial recognition is measured at fair value. Follow-up measurement is
classification treatment: with 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.
(2) 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.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
(3) De-recognition of financial liabilities
Recognition of certain liability should be terminated when related current obligation has already been wholly or
partly discharged.
(4) 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.
(5) The impairment test and the impairment provision of the financial assets
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.
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
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
(6) Reclassification of financial asset
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
Group recognition criteria Amount, risk size
Group1 Single amount major but not separate accrual provision
Group 2 Single amount not significant and portfolio risk is low
Group 3 Single amount not significant but risk is high in the group
Provision method for group
Group 1 Age analysis
Group 2 No provision
Group 3 Age analysis
Adopt age analysis provision in group as follows:
Accounts receivable provision Other receivables provision proportion
Aging
proportion (%) (%)
Within 1 year (contain 1 year) 0.00 0.00
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
5 to 6 years 80.00 80.00
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Accounts receivable provision Other receivables provision proportion
Aging
proportion (%) (%)
6 years or above 100.00 100.00
(3) Single amount not significant but single provision for accounts receivable
Single provision reason Separately impairment test, exist objective evidence for impairment
Provision method 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
The inventory is measured using weighted average method when issued.
(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; ②as 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.
(4) Inventory system
The stocktaking system is perpetual inventory system.
(5) Amortization method for low value consumable items and packing materials
The low value consumable items are amortized by step-amortization method and 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
①The 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.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
②The long-term equity investment is acquired through cash payment, the actual payment for the purchase shall be
deemed as initial investment cost.
③The 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.
④The long-term equity investment made by the investors, the agreed price in investment contract or agreement will
be deemed as the initial investment cost.
⑤long-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:
①Delegation of certain representative in the board of directors or similar situation of investee company.
②Participate the decision-making of investee company
③Delegation of certain management staff in the investee company.
④Reliance to technology or technological materials of investee company.
⑤others 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
-8-
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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:
①The economic benefits related with the fixed asset are probably to flow to the enterprise; and
②The cost of the fixed asset can be measured reliably
(2) 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
-9-
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Category of fixed assets Useful life (year) Residual value rate (%) Depreciation rate (%)
Transportation equipment 6-8 3 12.13-16.17
Electronic and other
4-11 3 2.2-24.25
equipment
(3) 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.
(4) 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: ①The lease transfers ownership of the asset to the lessee by the end of the lease term; ②The
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; ③The 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; ⑤The 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.
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
- 10 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
① The physical construction of fixed assets (including installation) have been completed or substantially completed;
②Have 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;
③Expenditure in the future associated with fixed assets, little or no place;
④The 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 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) Calculation of borrowing expense capitalization
The capitalization period: from borrowing cost starts capitalization to stop capitalization. The capitalization of the
borrowing costs suspended during not included.
If abnormal interruption happens during purchase or production of assets satisfying capitalization principle and the
interruption lasts over 3 months, the capitalization for the borrowing expense shall pause until the purchase or
production restarts.
Amount of borrowing expense capitalization: ①Capitalization 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;
②For 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. ③amortization 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
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
borrowing.
17. 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.
(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.
(3) Basis of determination of indefinite use life with 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.
On balance sheet date, the company is required to test intangible asset with an indefinite useful life for useful life at
the end of each year, mainly in top-down method.
(4) Impairment
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
- 12 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
of its estimated cash flow.
(5) Research and Development Cost
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.
18. 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.
19. Repurchase conditions of the transferred asset
20. 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.
- 13 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
21. 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: ①the
significant risks and rewards of ownership of the goods have been transferred to the buyer by the company; ②the
company retains neither continuous managerial involvement to the degree usually associated with the ownership nor
effective control over the sold goods; ③the amount of revenue can be measured reliably; ④it is probable that the
economic benefits associated with the transaction will flow to the company; ⑤the 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.
(2) 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: ①if 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;
②if 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.
(3) 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.
22 .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: ①the 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; ②the grant used for compensating the related expenses or losses incurred to the
company shall be directly included in the current profit or loss.
23. 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
- 14 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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 which the temporary difference can be utilized.
24. Lease
(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:
- 15 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
25. Major accounting policy modification, alteration accounting estimates description
(1) The main changes in accounting policies and accounting estimates
The company report period without accounting policy change, no accounting estimates changes.
26. Correction of previous errors and effects
During the report period without previous accounting error corrected.
V．Taxations
1. Major taxes and tax rates
Type of tax Tax base Tax rate
VAT Income from sales of goods and materials 17%
Income from lease, installation ,procession, rendering of
Business tax service 3%-5%
Urban maintenance and
construction tax Turnover tax 7%
Education surcharge Turnover tax 3%
Local education surcharge Turnover tax 1%
Corporate income tax Taxable income 15%-25%
The income tax, tax preferential policies advancements have not changed compared to last year.
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.
2. Tax incentives and approvals
There are no tax incentives and approvals for the report period.
.
3. Other instructions
Nil.
VI. Business combination and consolidated financial statements
1. Subsidiary
- 16 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
(1) Subsidiaries that are setup or obtained by the investment
Balance of Shareholdin Voting
other g proportion Rights
The Year End’s Essentially (%) proportio
Registered
Name Registratio Business Business actual amount of constitutin n (%)
Type capital( Unit:
n nature Scope capital g net
RMB Yuan）
Investment Investment
in
Subsidiary
Nanjing Southern
Stated-controlle 34,205,147.8 telecommunication 94,196,084.8
Telecommunication Nanjing Trading 3
98.24 98.24
1
d s
s Company Limited
Nanjing Bada
Stated-controlle 11,301,400.0 telecommunication
Telecommunication Nanjing 0 1,464,612.94 60.00 60.00
Manufactur
d s
s Co., Ltd e
Nanjing Putian
Trading&
Information Stated-controlle 14,000,000.0 telecommunication
Nanjing 0
5,065,340.17 99.98 99.98
Manufactur
Technology d s
e
Company Ltd.
Nanjing Putian Trading&
Stated-controlle 12,000,000.0 telecommunication 37,003,875.2
Telege Intelligent Nanjing 0 45.77 45.77
Manufactur 1
d s
Building Ltd. e
Putian
Stated-controlle HKD telecommunication
Hongkong Trading 2,000,000
1,910,520.00 90.00 90.00
Telecommunication
d s
s (Hong Kong) Co.,
- 17 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Ltd.
Beijing Picom
Stated-controlle telecommunication
Telecommunication Beijing Trading
USD 500,000 1,854,910.00 51.00 51.00
d s
s Equipment Ltd
Nanjing Putian
Trading&
Wongshi Stated-controlle 90,190,000.0 telecommunication 37,767,405.8
Nanjing 0
99.42 99.42
Manufactur 3
Telecommunication d s
e
s Co., Ltd.
Nanjing Putian
Changle Trading&
Stated-controlle 10,000,000.0 telecommunication 16,003,881.4
Telecommunication Nanjing 0
50.70 50.70
Manufactur 1
d s
s Equipment Co., e
Ltd.
Nanjing Putian Trading&
Stated-controlle 10,000,000.0 telecommunication 21,103,694.3
Network Company Nanjing 0
78.00 78.00
Manufactur 9
d s
Ltd. e
Nanjing Putian Trading&
Stated-controlle telecommunication
Telecommunication Nanjing
5,000,000.00 659,342.19 70.00 70.00
Manufactur
d s
Technology Co., Ltd e
Product industrial
plugs, sockets,
cable coupler,
low-voltage
Product and
distribution box,
Nanjing Mennekes sale
Limited USD cabinet accessories,
5,065,340.17 75.00 75.00
Electric Appliances Nanjing industrial 5,200,000
company and parts; sale of
Co., Ltd plugs,
self-produced
sockets
products. And the
main products are
plugs and sockets
for industry
Total
37,003,875.21
(Continued)
Amount in minority interest The balance after the parent company’ s owner’s equity writing down
statements combined or used for writing down the excess of the current loss undertaken by minority shareholders of
Name Minority interest
not minority gain and loss the subsidiary over the share enjoyed by minority shareholders in the
original owner’s equity of the subsidiary
Nanjing Southern
Telecommunications Yes
1,687,552.00
Company Limited
- 18 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Nanjing Bada
Telecommunications Yes
976,408.62
Co., Ltd
Nanjing Putian
Information
Yes
1,013.28
Technology Company
Ltd.
Nanjing Putian Telege
Intelligent Building Yes
43,848,868.53
Ltd.
Putian
Telecommunications
Yes
0.00
(Hong Kong) Co.,
Ltd.
Beijing Picom
Telecommunications No
Equipment Ltd
Nanjing Putian
Wongshi
Yes
220,328.87
Telecommunications
Co., Ltd.
Nanjing Putian
Changle
Yes
15,561,959.64
Telecommunications
Equipment Co., Ltd.
Nanjing Putian
Network Company Yes
5,952,324.06
Ltd.
Nanjing Putian
Telecommunication Yes
282,575.21
Technology Co., Ltd
Nanjing Mennekes
Electric Appliances Yes
20,364,880.24
Co., Ltd
Total
88,895,910.46
(2) Subsidiaries obtained by combination under common control
None
(3) Subsidiaries obtained by combination under different control
None
- 19 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2. The instructions of consolidation scope change
The scope of consolidation was not changed.
3. During the reporting period newly incorporated into the scope of consolidation and no
longer included in the scope of consolidation
None
4. Business combination occurred under the same control during the reporting period
None
5. Business combination occurred under the different control during the reporting period
None
6. The sales equity of loss of control over the subsidiary during the reporting period
None
7. The reverse purchase occurred during the reporting period
None
8. The merger by absorption during the reporting period
None
9. 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 2013, 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 2013 and as of 31 December
2012, announced by Foreign Exchange Bureau in China.
VII. Notes to the major items in the consolidated financial statements
1. Monetary funds
（1）Classification of Monetary funds
As of 30 June 2013 As of 31 December 2012
Exchange Exchange RMB
Item Original currency rate RMB converted Original currency rate converted
Cash on hand 73,773.29 1.0000 73,773.29 15,216.21 1.0000 15,216.21
RMB 73,773.29 1.0000 73,773.29 15,216.21 1.0000 15,216.21
Cash in bank —— —— 297,082,137.56 —— —— 369,524,077.19
RMB 286,196,153.78 1.0000 286,196,153.78 346,406,532.23 1.0000 346,406,532.23
USD 396,367.28 6.1787 2,449,034.51 3,126,742.87 6.2855 19,653,142.31
HKD 9,678,889.78 0.7966 7,710,203.60 980,548.79 0.81085 795,077.99
- 20 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 30 June 2013 As of 31 December 2012
Exchange Exchange RMB
Item Original currency rate RMB converted Original currency rate converted
EUR 90,238.61 8.0536 726,745.67 320,669.80 8.3176 2,667,203.13
GBP —— —— —— 208.7900 10.1611 2,121.53
Other monetary
3,592,341.96 1.0000 3,592,341.96 —— —— 82,475,956.24
funds
RMB 3,592,341.96 1.0000 3,592,341.96 82,187,393.52 1.0000 82,187,393.52
USD —— —— —— 45,909.27 6.2855 288,562.72
EUR —— —— —— —— —— ——
Total 300,748,252.81 —— —— 452,015,249.64
(2) Other monetary funds
Item As of 30 June 2013 As of 31 December 2012
Security deposit for bank acceptance bills 53,592,341.96 82,475,956.24
Total 53,592,341.96 82,475,956.24
2. Notes receivables
(1).Receivable by category list below
Item As of 30 June 2013 As of 31 December 2012
Commercial acceptance bills 11,003,945.54 8,604,577.52
Bank acceptance bills 1,804,758.09 9,589,643.25
Total 12,808,703.63 18,194,220.77
(2).Endorsed but not yet expired top five largest amount receivable listed below
Remitter Date of issue Date of expiry Amount Memo
China Telecom Co., Ltd.
2013-6-27 2013-12-17 3,100,789.53
Hubei Branch
China Railway Electrification
2013-4-11 2013-10-11 2,037,237.28
Bureau Group Co., Ltd.
China Telecom Co., Ltd.
2013-6-20 2013-12-20 1,960,830.00
Fujian Branch
China Jiangsu International
Economic and Technical 2013-7-17 2013-10-10 1,364,440.00
Cooperation Group, LTD
Zhenfa New Energy
2013-1-31 2013-7-31 1,000,000.00
Technology Co., Ltd.
- 21 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Remitter Date of issue Date of expiry Amount Memo
Total —— —— 9,463,296.81 ——
(3).Other matters need to explain：
None
3. Accounts receivable
(1)Classification of accounts receivable
As of 30 June 2013
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 276,987,041.48 30.70
Group 2 579,388,476.11 64.22
Group 3 37,615,798.74 4.17 10,196,285.29 27.11
3. Single amount not significant but
8,166,647.18 0.91 8,166,647.18 100.00
single provision for accounts receivable
Total 902,157,963.51 100.00 18,362,932.47 2.04
As of 31 December 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 account receivable
Group1 169,582,824.65 23.10
Group 2 324,160,593.62 44.15
Group 3 232,184,991.36 31.62 9,153,091.02 4.56
- 22 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
3. Single amount not significant but
single provision for accounts receivable 8,305,969.16 1.13 8,305,969.16 100.00
Total 734,234,378.79 100.00 17,459,060.18 2.38
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.
Adopt age analysis provision in group as follows:
As of 30 June 2013 As of 31 December 2012
Proportion Proportion
Age Book balance (%) Provision Book balance (%) Provision
Within 1 year
(contain 1 217,221,550.75 69.04% 336,349,476.20 83.72%
year)
1 to 2 years 55,652,396.53 17.69% 38,784,046.64 9.65%
2 to 3 years 25,622,802.70 8.14% 1,228,110.29 12,514,635.85 3.11% 1,251,463.59
3 years above 16,106,090.24 5.13% 8,968,175.00 14,119,657.32 3.52% 7,901,627.43
3to 4 years 5,563,957.68 1.77% 1,669,187.31 5,285,129.36 1.32% 1,585,538.81
4 to 5 years 4,183,335.94 1.33% 1,673,334.38 4,049,601.47 1.01% 1,619,840.59
5 years above 6,358,796.62 2.03% 5,625,653.31 4,784,926.49 1.19% 4,696,248.03
Total 314,602,840.23 -- 10,196,285.29 401,767,816.01 -- 9,153,091.02
Closing single amount not significant but single provision for accounts receivable
Proportion
Receivables Book amount Bad debt Reason
(%)
Aging longer
1,505,586.80 1,505,586.80 100.00 cannot be
NEPAL TETE recalled
Aging longer
1,351,541.24 1,351,541.24 100.00 cannot be
Jiangsu Changzhou Dahua Co. recalled
Aging longer
815,581.22 815,581.22 100.00 cannot be
Hubei Provincial Public Security recalled
XI'AN Overload Science 601,365.45 601,365.45 100.00 Aging longer
- 23 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
cannot be
recalled
Aging longer
Taiyuan High-tech Industry Import and Export 247,825.07 247,825.07 100.00 cannot be
Co recalled
Aging longer
Beijing Zhenyuan Innovation Science and 150,769.24 150,769.24 100.00 cannot be
Technology Development Co recalled
Aging longer
116,370.36 116,370.36 100.00 cannot be
Zhongshan Group International Trader Center recalled
Aging longer
1,748,580.14 1,748,580.14 100.00 cannot be
M/S Whlstler Telecom(pvt) LTD recalled
Aging longer
101,555.69 101,555.69 100.00 cannot be
PRADUFA recalled
Aging longer
12,500.00 12,500.00 100.00 cannot be
China Unicom Nanjing Branch recalled
Beijing Tongchengdaye Communication
486,001.22 486,001.22 100.00 Lawsuit
Technology Co., Ltd.
Shandong University of Traditional Chinese
264,868.40 264,868.40 100.00 Lawsuit
Medicine
Jiangsu Taihewei Nets Technology Co., Ltd. 419,504.72 419,504.72 100.00 Lawsuit
Heilongjiang Blue Ocean Silver Ann technology
155,111.86 155,111.86 100.00 Lawsuit
Development Co., LTD
Suzhou Tyrone Real Estate Development Co. 159,322.80 159,322.80 100.00 Lawsuit
Changchun Jiachen Network Technology Co.,
30,162.97 30,162.97 100.00 Lawsuit
LTD
Total 8,166,647.18 8,166,647.18 —— ——
(2) Current payback or return of receivables
Accumulative
amount of
provision for bad
Reason for Back or Basis of provision debts preparation Amount for Back
Receivables
Withdraw for bad debt before Withdraw or or Withdraw
back
Beijing Tongchengdaye
Communication Technology Recover lawsuit 511,401.22 25,400.00
Co.,Ltd
- 24 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Accumulative
amount of
provision for bad
Reason for Back or Basis of provision debts preparation Amount for Back
Receivables
Withdraw for bad debt before Withdraw or or Withdraw
back
Total —— —— 511,401.22 25,400.00
(3) The income in the actual cancel after verification of receivables
None
(4) Accounts receivable due from shareholder who has more than 5% (including 5 %) voting shares of the
Company at year-end
Amount of RMB 45,254,394.79 Yuan is due from China Potevio Co. Ltd., Parent company, aging within 3 year,
which include RMB 29,363.72 Yuan aging 2 to 3 year withdrawing bad debts RMB 2,936.37 Yuan at 30 June 2013.
Amount of RMB 20,459,786.64 Yuan is due from China Potevio Co. Ltd., Parent company, aging within 2 year, has
no provision for bad debts at 31 December 2012.
(5)Top 5 debtors of accounts receivable
Proportion of
Relationship with
Name of the debtors Amount Aging total amount
the Company
(%)
Within 1
82,978,417.53 9.20
year
China Telecom Co., Ltd. Jiangsu Branch non-related party
2 to 3
2,378.00 0.00
year
Within 1
37,947,739.98 4.21
year
1 to 2
China Putian Information Industry Co.,Ltd parent company 7,277,291.09 0.81
year
2 to 3
29,363.72
year
Within 1
18,353,708.29 2.03
year
Agricultural Bank of China non-related party
1 to 2
15,149,360.70 1.68
year
Nanjing Hehao Communication Technology Within 1
non-related party 26,588,864.00 2.95
year
Co., Ltd.
Within 1
7,524,803.00 0.83
Beijing Xinliwenhao Science and year
non-related party
Technology Development Co., Ltd. 1 to 2
12,277,926.48 1.36
year
Total —— 208,129,852.79 —— 23.07
(6) Accounts receivable of related parties accounts
Relationship with the Proportion of
Name of the debtors Amount
Company total amount (%)
China Putian Information Industry Co.,Ltd Parent company 45,254,394.79 5.02
- 25 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Relationship with the Proportion of
Name of the debtors Amount
Company total amount (%)
Shanghai Putian Post and Under the same parent
13,341,700.00 1.48
Telecommunications Technology Co., Ltd.
company
Beijing Dragon Oriental International Under the same parent
7,396,003.60 0.82
Information Technology Co., Ltd.
company
Nanjing Prachanda Live Optical Network
6,141.50
Co., Ltd Joint ventures
Total —— 65,998,239.89 7.32
(7) Balance of accounts receivable in foreign currencies
As of 30 June 2013 As of 31 December 2012
Foreign Exchange Original
Currency Original currency rate RMB currency Exchange rate RMB
USD 1,177,107.00 6.1787 7,275,109.81 1,309,842.89 6.2855 8,233,017.49
HKD
EUR
Total 1,177,107.00 6.1787 7,275,109.81 1,309,842.89 6.2855 8,233,017.49
4. Advances to suppliers
(1)Analysis of aging
As of 30 June 2013 As of 31 December 20121
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 19,221,811.90 47.67 26,736,008.86 69.63
1-2 years 9,768,106.92 24.23 3,319,945.69 8.65
2-3 years 3,123,257.17 7.75 6,313,716.09 16.44
over 3 years 8,204,049.29 20.35 2,027,088.40 5.28
Total 40,317,225.28 100.00 38,396,759.04 100.00
(2)Top five largest accounts paid in advance
Relationship Proportion of
Reasons for
Company with the Amount total amount Aging
un-settlement
Company (%)
Nanjing Yuhua Economy non-related Over 3
6,020,000.00 14.93 In credit period
Development Co., LTD party years
Jiangsu Sainty International non-related 1 to 2
3,219,566.17 7.99 In credit period
Group Tech-development Co., Ltd. party year
- 26 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Relationship Proportion of
Reasons for
Company with the Amount total amount Aging
un-settlement
Company (%)
Nanjing Putian TianJi Cable Co., Within
related party 2,791,017.69 6.92 In credit period
LTD 1 year
Jiangsu Huayu Intelligent Systems non-related Within
2,213,277.50 5.49 In credit period
Engineering Co., LTD party 2 year
Nanjing Polymerization Digital non-related Within
2,000,000.00 4.96 In credit period
Technology Co., LTD. party 1 year
Total 16,243,861.36 40.29 ——- ——
(3) Prepayment of shareholder who has more than 5% (including 5 %) voting shares of the Company at
year-end
None
5. Other receivables
(1)Classification of other receivables
As of 30 June 2013
Book balance Provision
Classification
Proportion Proportion
Amount Amount
(%) (%)
1. Single amount dramatic and individual
28,912,122.71 36.11 28,912,122.71 100
provision for the accounts receivable
2. Classification as the group of provision for
51,154,155.54 63.89 9,442,657.52 18.46
account receivable
Group1 16,000,000.00 19.98 4,800,000.00 30
Group 2 23,553,245.95 29.42
Group 3 11,600,909.59 14.49 4,642,657.52 40.02
3. Single amount not significant but single
-
provision for accounts receivable
Total 80,066,278.25 100.00 38,354,780.23 47.9
As of 31 December 2012
Book balance Provision
Classification
Proportion Proportion
Amount Amount
(%) (%)
1. Single amount dramatic and individual provision 28,912,122.71 31.95 28,912,122.71 100.00
- 27 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
for the accounts receivable
2. Classification as the group of provision for
61,593,481.47 68.05 9,754,846.95 15.84
account receivable
Group1 18,000,000.00 19.88 5,400,000.00 15.21
Group 2 24,460,729.04 27.03 - -
Group 3 19,132,752.43 21.14 4,354,846.95 22.76
3. Single amount not significant but single provision
- - -
for accounts receivable
Total 90,505,604.18 100.00 38,666,969.66 42.72
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.
Adopt age analysis provision in group as follows:
As of 30 June 2013 As of 31 December 2012
Proportion Proportion
Age Book balance (%) Provision Book balance (%) Provision
Within 1 year
(contain 1 1,466,988.96 5.31% 8,164,134.87 21.99%
year)
1 to 2 years 633,527.45 2.3% 2,060,630.73 5.55%
2 to 3 years 2,300,668.51 8.34% 230,666.85 3,029,912.83 8.16% 302,991.21
3 years above 23,199,724.67 84.05% 9,211,990.67 23,878,074.00 64.3% 9,451,855.74
3 to 4years 18,120,381.96 65.65% 5,411,291.24 19,871,318.83 53.51% 5,960,945.65
4 to 5 years 1,634,199.54 5.92% 534,540.29 832,667.80 2.24% 333,067.40
5 years or
3,445,143.17 12.48% 3,266,159.14 3,174,087.37 8.55% 3,157,842.69
above
Total 27,600,909.59 -- 9,442,657.52 37,132,752.43 -- 9,754,846.95
(2) Recovery or reversal of current other receivables
None of recovery or reversal of current other receivables with full provision for bad debts or a larger percentage of
provision for bad debts before and recovery or reversal of them this year, as well a larger percentage of recovery or
reversal this year.
(3) Written -off of other receivables in the current period
- 28 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
This period without verification or take other receivables has cancel after verification.
(4) Other accounts due from shareholder who has more than 5% (including 5 %) voting shares of the
Company at year-end
None
(5)Contents or types of other receivables with larger amount
Type (or contents)
Name of debtors Amount
of other receivables
Beijing Picom Telecommunications Equipment
28,912,122.71 Receivables and payables
Ltd
The Yuhua People's Government Nanning
16,000,000.00 Receivables and payables
Office
Total 44,912,122.71 ——
(6) Top 5 debtors of other receivables
Proportion of
Relationship with the
Name of debtors Amount Aging total amount
Company
(%)
Beijing Picom Telecommunications More than
Subsidiary 28,912,122.71 36.11%
Equipment Ltd 6 yeas
The Yuhua People's Government 3 to 4
Non-related party 16,000,000.00 19.98%
Nanning Office years
Within 1
Shanghai Comtender Bidding Co., 392,500.00 0.49%
Non-related party year
Ltd.
686,463.00 1 to 2 year 0.86%
Within 1
China Mobile Communications 979,500.00 1.22%
year
Group Jiangsu Co., LTD. Nanjing Non-related party
More than
branch 500.00 0%
6 yeas
80,000.00 1 to 2 year 0.1%
China United Network
Communications Ltd. Liaoning Non-related party 50,000.00 2 to 3 year 0.06%
Branch 500,000.00 3 to 4 year 0.62%
Total —— 47,601,085.71 —— 59.44%
(7)Other receivables from related parties
Relationship with the Proportion of
Name of debtors Amount
Company total amount (%)
Beijing Picom Telecommunications
Subsidiary 28,912,122.71 36.11%
Equipment Ltd
- 29 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Relationship with the Proportion of
Name of debtors Amount
Company total amount (%)
Nanjing Putian Technology Industrial Park
Related party 0.13%
Corporation 102,955.98
Putian Hongyan Company Related party 0.3%
242,600.69
Putian Industry Company Related party 0.81%
651,147.41
Total 29,908,826.79 37.35%
(8)Balance of other receivables in foreign currencies
As of 30 June 2013 As of 31 December 2012
Foreign currency Exchange RMB Original RMB
Original currency Exchange rate
rate converted currency converted
USD 210.00 6.1787 1,297.53
Total —— —— 1,297.53 —— ——
6. Inventories
(1)Classification of inventories
As of 30 June 2013 As of 31 December 2012
Provision
Item Provision for
Book balance for Book value Book balance Book value
devaluation
devaluation
Raw 1,640,390.2
37,277,472.03 35,637,081.76 34,266,404.47 2,616,797.25 31,649,607.22
7
materials
Goods-in- 158,009,096.8 158,009,096.8
60,398,291.29 60,398,291.29
9 9
process
Finished 276,299,571.9 6,873,415.9 269,426,156.0 379,021,719.7
7,218,572.71 371,803,146.99
4 3 1 0
goods
471,586,140.8 8,513,806.2 463,072,334.6 473,686,415.4
Total 9,835,369.96 463,851,045.50
6 0 6 6
(2) Provision for inventory devaluation
Amount Amount reduced this year
As of 31
Item provided this As of 30 June 2013
December 2012 Reversal Written off
year
Raw materials 2,616,797.25 976,406.98 1,640,390.27
Goods-in-process
Finished goods 7,218,572.71 345,156.78 6,873,415.93
- 30 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Amount Amount reduced this year
As of 31
Item provided this As of 30 June 2013
December 2012 Reversal Written off
year
Total 9,835,369.96 1,321,563.76 8,513,806.20
7. Long-term equity investments of the joint ventures and associated ventures
(1)Information of the joint ventures
Voting right
Share
proportion
holding
of the Total Total net
percentage Total assets at Total sales of Net profit of
Invested units company liabilities 30 assets 30
of the 30 June 2013 this period this period
among June 2013 June 2013
company
invested
(%)
units (%)
Nanjing Prachanda Live
Optical Network Co., 50.00 50.00 79,584,786.06 45,282,156.78 34,302,629.28 24,754,280.00 -5,119,852.16
Ltd
(2)Information of the associated ventures
Voting
Share right
holding proportion Total Total net
Total assets at
percentage of the liabilities 31 assets at 31 Total sales of Net profit of
Invested units 31 December
of the company December December this period This period
2012
company among 2012 2012
(%) invested
units (%)
Nanjing Putian Datang
Information and Electric 40.00 40.00 21,344,532.00 13,014,545.79 8,329,986.21 14,668,405.87 1,192,864.20
Company Ltd
Nanjing Putian
Zhongyou
30.00 30.00 1,679,837.03 390,162.57 1,289,674.46 0.00 0.00
Telecommunication Co.,
Ltd.
Nanjing Putian High
Technology Industry 49.64 49.64 342,434,152.50 1,419,470.67 341,014,681.83 7,214,621.27 444,095.35
Co., Ltd.
8. Long-term equity investments
- 31 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
(1)List of Information of Long-term Equity Investment
Share holding
Book balance Book balance
percentage of
at 31 at 31
Invested units Accountin Initial cost of the Company
December Movement December
g Method investment among
2012 2012
invested units
(%)
Nanjing Putian
Datang
Equity
Information and 600,000.00 2,759,925.47 477,145.68 3,237,071.15 40.00
Method
Electric
Company Ltd
Nanjing Putian
Zhongyou Equity
300,000.00 216,145.33 216,145.33 30.00
Telecommunica Method
tion Co., Ltd.
Nanjing Putian
High
Equity 167,548,141.2 168,859,901.1 169,080,350.
Technology 220,448.93 49.64
9 6 09
Method
Industry Co.,
Ltd.
Shanghai
Yulong Cost 14,721,843.5
23,310,000.00 14,721,843.51 17.79
1
Bio-tech Co., Method
Ltd.
Qufu Yulong
Cost
Bio-Tech Co., - 3,113,727.00 3,113,727.00 17.79
Method
Ltd.
Nanjing Equity
Prachanda Live Method
18,151,314.6
Optical 13,544,400.00 15,711,240.73 2,440,073.92 50.00
5
Network Co.,
Ltd
Beijing Picom
Cost
Telecommunica 1,854,910.00 1,854,910.00 1,854,910.00 51.00
Method
tions
Nanjing Yuhua
Cost
Galvanization 420,915.00 420,915.00 420,915.00 10.00
Method
Factory
Hangzhou
Cost
Putian 321,038.00 321,038.00 321,038.00 2.26
Method
Swanking
- 32 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Electrical Co.,
Ltd
Nanjing Putian
Cost
Industry Co., 181,701.84 181,701.84 181,701.84 10.00
Method
Ltd
Nanjing Putian
Equity
Telege Cable 2,250,000.00 2,431,827.34 -105,021.18 2,326,806.16 45.00
Method
Co., Ltd.
210,331,106.1 210,593,175.3 213,625,822.
Total 3,032,647.35 ——
3 8 73
(Continued)
Voting right Depreciatio
proportion Interpretations of difference
n
of the between the equity Depreciatio Cash dividend
Invested units reserves
Company percentage and vote right n during the
withdrawn
among percentage in the invested reserve period
during the
invested unit
units (%) period
Nanjing Putian
Datang Information
40.00
and Electric
Company Ltd
Nanjing Putian
Zhongyou
30.00
Telecommunication
Co., Ltd.
Nanjing Putian
High Technology 49.64
Industry Co., Ltd.
Shanghai Yulong
17.79
Bio-tech Co., Ltd.
Qufu Yulong
17.79
Bio-Tech Co., Ltd.
Nanjing Prachanda
Live Optical 50.00
Network Co., Ltd
Beijing Picom
1,854,910.0
Telecommunication 51.00
0
s
Nanjing Yuhua
Galvanization 10.00
Factory
- 33 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Hangzhou
Swanking Electric 2.26
Appliance
Nanjing Putian
10.00
Industry Co. Ltd
Nanjing Putian
Telege Cable Co., 45.00
Ltd.
1,854,910.0
Total —— —— -
0
(2)Explanation of Long-term Equity Investment
There is no long-term equity investment with restriction for sale at the end of this period.
9. Investment property
Investment properties measured at costs
Decreas
As of 31 Increase e As of 30 June
Item
December 2012 during the year during the 2013
year
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
3,582,251.26 103,215.96 3,685,467.22
accumulated amortization
Houses and buildings 2,417,480.59 43,235.64 2,460,716.23
Land use rights 1,164,770.67 59,980.32 1,224,750.99
Total net book value 6,450,166.03 -103,215.96 6,346,950.07
Houses and buildings 3,972,788.83 -43,235.64 3,929,553.19
Land use rights 2,477,377.20 -59,980.32 2,417,396.88
Total accumulated provision for
1,842,418.00 1,842,418.00
impairment
- 34 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Decreas
As of 31 Increase e As of 30 June
Item
December 2012 during the year during the 2013
year
Houses and buildings 1,842,418.00 1,842,418.00
Total carrying value 4,607,748.03 -103,215.96 4,504,532.07
Houses and buildings 2,130,370.83 -43,235.64 2,087,135.19
Land use rights 2,477,377.20 -59,980.32 2,417,396.88
10. Fixed assets
(1)Lists of fixed assets and accumulated depreciation, including movement
As of 31 Increase during Decrease As of 30 June
Item
December 2012 the year during the year 2013
Total original cost of fixed
264,341,854.63 2,743,315.81 236,256.00 266,848,914.44
assets
Building/structure 121,519,255.50 1,002,377.76 —— 122,521,633.26
Machinery equipment 67,840,014.19 246,923.09 —— 68,086,937.28
Transportation equipment 17,277,316.36 557,730.62 228,800.00 17,606,246.98
Others 57,705,268.58 936,284.34 7,456.00 58,634,096.92
Total accumulated depreciation 148,259,421.52 5,540,346.27 205,528.03 153,594,239.76
Building/structure 37,587,331.01 2,030,477.06 —— 39,617,808.07
Machinery equipment 51,518,554.42 1,542,217.01 —— 53,060,771.43
Transportation equipment 12,285,627.70 884,523.84 198,817.63 12,971,333.91
Others 46,867,908.39 1,083,128.36 6,710.40 47,944,326.35
Total impairment of fixed
2,359,652.66 —— —— 2,359,652.66
assets
Building/structure 539,124.00 —— —— 539,124.00
Machinery equipment 573,461.78 —— —— 573,461.78
Transportation equipment —— —— —— ——
Others 1,247,066.88 —— —— 1,247,066.88
Total carrying value of fixed
113,722,780.45 —— —— 110,895,022.02
assets
Building/structure 83,392,800.49 —— —— 82,364,701.19
Machinery equipment 15,747,997.99 —— —— 13,910,850.28
Transportation equipment 4,991,688.66 —— —— 4,634,913.07
- 35 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 31 Increase during Decrease As of 30 June
Item
December 2012 the year during the year 2013
Others 9,590,293.31 —— —— 9,984,557.48
Note: The depreciation amount is RMB 5,540,346.27 Yuan, in this period there was no construction in progress turn
to fixed assets.
(2)Fixed assets not in use temporarily
None
(3) 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 -------
11. Construction in progress
(1)Basic information of Construction in progress
As of 30 June 2013 As of 31 December 2012
Item Book Impairment Book Impairment
Book value Book value
balance provision balance provision
Nanjing Putian Telege
Cable Co., Ltd.
assembly workshop
building
Nanjing Putian Yuhua
7,977,772.29 —— 7,977,772.29 1,982,054.49 —— 1,982,054.49
Venture park
Fiber optic cable line 614,290.58 —— 614,290.58 598,290.58 —— 598,290.58
Total 8,592,062.87 —— 8,592,062.87 2,580,345.07 —— 2,580,345.07
(2) Significant movement of construction in progress
Proportion
N
Increase
As of 31 Transfer to Other of project
during the As of 30 June
Item Budget December fixed assets decrease Investment
year 2013
2012 in
budget
(%)
Nanjing Putian
Telege Cable Co.,
Ltd. assembly
workshop building
- 36 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Proportion
N
Increase
As of 31 Transfer to Other of project
during the As of 30 June
Item Budget December fixed assets decrease Investment
year 2013
2012 in
budget
(%)
Nanjing Putian
1,982,054.49 5,995,717.80 7,977,772.29
Yuhua Venture park
Fiber optic cable
598,290.58 16,000.00 —— —— 614,290.58
line
Total 2,580,345.07 6,011,717.80 —— —— 8,592,062.87
(Continued)
Accumulated amount Including interest Interest
Accumulated Capital
Item of interest capitalized amount capitalization
progress source
capitalization of the year rate of the year
Nanjing Putian
Telege Cable Co.,
Ltd. assembly Self-owned
workshop building
Nanjing Putian
Yuhua Venture park Self-owned
Wangshi workshop
Self-owned
transformation
Total
12. Intangible assets
As of 31 Increase Decrease As of 30 June
Item
December 2012 during the year during the year 2013
Total original cost 37,188,934.09 319,546.90 37,508,480.99
Land use right 20,821,664.95 20,821,664.95
Exclusive technology 6,117,894.02 6,117,894.02
Software 10,249,375.12 319,546.90 10,568,922.02
Total accumulated
17,734,549.23 1,807,199.99 1,144,633.50 18,397,115.72
amortization
Land use right 3,849,764.82 232,211.99 4,081,976.81
Exclusive technology 5,543,776.19 5,543,776.19
Software 8,341,008.22 1,574,988.00 1,144,633.50 8,771,362.72
Total net book value 19,454,384.86 19,111,365.27
Land use right 16,971,900.13 16,739,688.14
- 37 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 31 Increase Decrease As of 30 June
Item
December 2012 during the year during the year 2013
Exclusive technology 574,117.83 574,117.83
Software 1,908,366.90 1,797,559.30
Total accumulated provision
for impairment
Land use right
Exclusive technology
Software
Total carrying value 19,454,384.86 19,111,365.27
Land use right 16,971,900.13 16,739,688.14
Exclusive technology 574,117.83 574,117.83
Software 1,908,366.90 1,797,559.30
Note: The amortization amount of the intangible assets this year is RMB 1,807,199.99 Yuan.
13. Details of asset impairment
Amount Amount reduced this period
As of 31 As of 30 June
Item provided this
December 2012 Reversal Written off 2013
period
Bad debts reserve 56,126,029.84 1,455,359.07 863,676.21 56,717,712.70
Provision for
inventory 9,835,369.96 1,321,563.76 9,835,369.96
devaluation
Provision of
available-for-sale -
financial assets
Provision of
Held-to-maturity -
investments
Provision of
long-term equity 1,854,910.00 1,854,910.00
investments
Provision of
1,842,418.00 1,842,418.00
investment property
Provision of fixed
2,359,652.66 2,359,652.66
assets
Provision of
-
construction
- 38 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Amount Amount reduced this period
As of 31 As of 30 June
Item provided this
December 2012 Reversal Written off 2013
period
materials
Provision of
construction in -
progress
Provision of
productive -
biological assets
Including:
provision of mature
-
productive
biological assets
Provision of petrol
-
assets
Provision of
-
intangible assets
Provision of
-
goodwill
Provision of others -
Total 72,018,380.46 1,455,359.07 863,676.21 1,321,563.76 71,288,499.56
14 .Lists of all assets with restriction of certificate of title or use right
As of 30 June Reasons for restriction of
Item
2013 certificate of title or use right
Used to guarantee the assets
60,002,937.33
Real estate For loan security
10,803,312.08
Land For loan security
Others causes ownership restrictions assets
70,806,249.41
Total
15. Short-term loans
Short-term borrowings classified by listed below
Kinds of loans As of 30 June 2013 As of 31 December 2012
Pledged loan
Loan in mortgage 83,300,000.00 73,300,000.00
- 39 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Kinds of loans As of 30 June 2013 As of 31 December 2012
Guaranteed loan 404,000,000.00 379,800,000.00
Loan in credit 20,000,000.00 40,000,000.00
Total 507,300,000.00 493,100,000.00
Notes:
1、To obtain the two bank short-term loans of RMB15,000,000.00 Yuan and 17,000,000.00 Yuan, the company
will mortgage three real estates, confirmed the total value of RMB32,098,700.00 Yuan of real estate, the loan period
is from 17 June 2013 to 17 June 2014 and 15 May 2013 to 15 May 2014. The subsidiaries Nanjing Putian Telege
Cable Co., Ltd. mortgaged its two real estate for loan of RMB 40,000,000.00 Yuan and Nanjing Mennekes Electric
Appliances Co., Ltd. mortgaged its two real estate for loan of RMB 11,300,000.00 Yuan.
2、The final controller China Putian Corporation Group guaranteed the borrowing of RMB 230,000,000.00 Yuan.
The parent company China Putian Company Ltd. guaranteed the borrowing of RMB 94,000,000.00 Yuan. And
Nanjing Southern Telecommunications Company Ltd. guaranteed the borrowing of RMB 20,000,000.00 Yuan. The
company guaranteed the borrowing of RMB 40,000,000.00 Yuan for Nanjing Southern Telecommunications
Company Ltd. and the borrowing of RMB 20,000,000.00 Yuan for Nanjing Putian Telege Cable Co., Ltd
3、Fiduciary loan：the company has acquired fiduciary loan RMB 20,000,000.00 Yuan from JiangsuBank.
16. Notes payable
Item As of 30 June 2013 As of 31 December 2012
Bank acceptance bills 60,000,000.00 107,000,000.00
Commercial acceptance bills
Total 60,000,000.00 107,000,000.00
Notes: Notes payable closing balance next accounting periods expire the amount of the RMB 60,000,000.00 Yuan.
17. Accounts payable
(1)Analysis of aging
Item As of 30 June 2013 As of 31 December 2012
Within 1 year 621,001,850.25 677,733,605.37
1-2 years 273,901,531.39 127,577,878.49
2-3 years 26,172,109.07 40,414,953.96
over 3 years 19,182,061.08 5,054,861.00
Total 940,257,551.79 850,781,298.82
(2) Accounts payable to shareholders holding 5% or above voting shares of the Company
At 30 June 2013, there is no accounts payable to shareholders holding 5% or above voting shares of the company.
(3)Significant accounts payable with ageing over one year as at year-end
None
- 40 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
(4)Balance of accounts payable in foreign currency
As of 30 June 2013 As of 31 December 2012
Foreign
Exchange Original
Currency
Original currency rate RMB currency Exchange rate RMB
HKD 9,509,823.43 0.7966 7,575,525.34 18,527,627.18 0.8110 15,025,300.33
Total 9,509,823.43 0.7966 7,575,525.34 18,527,627.18 0.8110 15,025,300.33
18. Advances from customers
(1)Analysis of aging
Item As of 30 June 2013 As of 31 December 2012
Within 1 year 44,317,915.33 85,165,889.58
1-2 years 9,521,522.71 11,967,783.27
2-3 years 10,403,976.71 1,994,368.92
over 3 years 3,504,251.77 1,312,261.87
Total 67,747,666.52 100,440,303.64
(2) Accounts received in advance from shareholders holding 5% or above voting shares of the company, as well
as that of related parties.
This period closing advance from parent China Potevio Co., Ltd RMB 8,158,434.00 Yuan.
(3) Significant accounts payable with ageing over one year as at year-end
None
19. Accrued payroll
As of 31
Increase Decrease As of 30 June
Item December
during the period during the period 2013
2012
Wages, bonuses and allowance 4,509,440.30 55,571,635.76 55,571,635.76 4,509,440.30
Welfare expense - 6,654,187.11 6,435,689.21 218,497.90
Social insurance charges - 18,422,372.54 18,422,372.54 -
Including: Medical insurance - 5,813,788.07 5,813,788.07 -
Basic endowment insurance - 10,362,137.86 10,362,137.86 -
Unemployment insurance - 1,212,066.44 1,212,066.44 -
Work injury insurance - 219,710.76 219,710.76 -
Maternity insurance - 353,121.67 353,121.67 -
Annuity - 461,547.74 461,547.74 -
- 41 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 31
Increase Decrease As of 30 June
Item December
during the period during the period 2013
2012
Housing fund 6,180,516.00 4,515,536.51 4,515,536.51 6,180,516.00
Compensation for cancellation of
1,457,996.81 1,038,851.44 624,982.50 1,871,865.75
labor relationship
Others 2,603,224.40 1,270,292.80 885,998.95 2,987,518.25
Including: labor union
42,270.00 42,270.00 -
expenditure
Employee education expenses 26,000.00 26,000.00
Total 14,751,177.51 87,541,146.16 86,524,485.47 15,767,838.20
Notes: Unpaid wages do not exist; Payroll at 18 th monthly.
20. Taxes payable
As of 30 June As of 31
Item Note
2013 December 2012
Corporate income tax 822,479.90 7,892,692.72
Value-added tax -6,357,837.52 548,340.05 17%
Business tax -94,178.66 211,293.84 3%,5%
Consumption Tax 314,363.03
Land use tax 90,671.00
Property Tax -30,701.37
Urban maintenance and construction tax 89,932.40 882,086.24 7% of the turnover tax
Education surcharge -73,227.29 652,205.99 3%、2%of the turnover tax
Stamp Tax 7,254.50 3,630.20
Individual Income Tax 311,502.37 178,693.28
Total -4,919,741.64 10,368,942.32
21.Dividends payable
Name As of 30 June 2013 As of 31 December 2012
Jiangsu Huabang Mechanical and
electrical equipment engineering Co., 284,521.88
Ltd
Ningbo Yinzhou New Star Plastic
284,521.88
Electronic Co.,Ltd
Yuyao Guochang Electronic Co.,Ltd 474,203.13
- 42 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Name As of 30 June 2013 As of 31 December 2012
Nanjing Yongxin Electrical Appliance
284,521.88
Matching Co., Ltd.
Jingjiang Huasheng Communication
94,840.62
Equipment Co., Ltd.
Jiangdu Yate Communications Plastic
474,203.13
Products Co,.Ltd(Jiangdu Branch)
Zhenjiang Shengtang Photoelectric
284,521.88
Device Co,.Ltd
Total 2,181,334.40
22. Other payables
(1)Analysis of aging
As of 30 June 2013 As of 31 December 2012
Item Percentage Percentage
Amount Amount
(%) (%)
Within 1 year 2,447,317.34 5.23 29,610,322.24 64.36
1-2 years 14,966,427.59 31.97 8,617,449.59 18.73
2-3 years 1,723,669.65 3.68 3,230,276.95 7.02
over 3 years 27,680,841.99 59.12 4,550,658.87 9.89
Total 46,818,256.57 100.00 46,008,707.65 100.00
(2) Other payables to shareholders holding 5% or above voting shares of the company, as well as that of
related parties.
None.
(3) Explain for large amount other payables
Name Amount Nature
Engineering service charge 25,402,872.54 Service charge
Total 25,402,872.54 ——
23. Share capital
Increases(+) or decreases(-) in current year
Shares
As of 31 Issuance transferred As of 30 June
Item Gift
December 2012 of new from Others Subtotal 2013
share
shares capital
reserve
Total 215,000,000.00 215,000,000.00
- 43 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
24. Capital reserve
As of 31 Increase
Decrease As of 30 June
Item December 2012 during the year
during the year 2013
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
25. Surplus reserve
As of 31 Increase Decrease As of 30 June
Item
December 2012 during the year during the year 2013
Statutory surplus reserves 589,559.77 589,559.77
Total 589,559.77 589,559.77
26. Undistributed profit
Proportion of
Item Amount Extraction or
Distribution
Undistributed profit at the end of last year before
-19,387,788.41 ——
adjustments
The sum of undistributed profit at the beginning of the
——
adjustment year (increase +, reduction -)
Undistributed profit at the beginning of a year after
——
adjustment
Add: Net profit attributable to the owner of the parent
-2,719,217.34 ——
company this year
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 -22,107,005.75
27. Operating revenues and costs
- 44 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
(1)Operating revenues
Item For 31 December 2012 For 31 December 2011
Main operating revenue 1,200,190,368.34 1,339,172,102.91
Other operating revenue 7,367,170.48 10,791,079.91
Operating cost 1,043,008,171.55 1,167,040,803.45
(2)Main Business (In terms of industry)
As of 30 June 2013 As of 30 June 2012
Item Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Communications equipment
1,149,500,752.80 1,000,433,034.29 1,287,158,567.25 1,119,838,957.60
manufacturing industry
Electrical equipment
50,689,615.54 37,864,868.93 52,013,535.66 39,522,573.72
manufacturing industry
Total 1,200,190,368.34 1,038,297,903.22 1,339,172,102.91 1,159,361,531.32
(3)Main Business (In terms of different products)
As of 30 June 2013 As of 30 June 2012
Item Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Communication products 1,149,500,752.80 1,000,433,034.29 1,287,158,567.25 1,119,838,957.60
Electrical products 50,689,615.54 37,864,868.93 52,013,535.66 39,522,573.72
Total 1,200,190,368.34 1,038,297,903.22 1,339,172,102.91 1,159,361,531.32
(4)Main Business (In terms of different regions)
As of 30 June 2013 As of 30 June 2012
Name of Region Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Domestic market 1,189,316,018.09 1,027,739,558.96 1,335,490,703.78 1,156,726,099.11
Oversea market 10,874,350.25 10,558,344.26 3,681,399.13 2,635,432.21
Total 1,189,316,018.09 1,027,739,558.96 1,339,172,102.91 1,159,361,531.32
(5)The amount of operating revenues received from the top 5 customers this year
Proportion taking in total
Item Operating revenues operating income of the
Company (%)
- 45 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Proportion taking in total
Item Operating revenues operating income of the
Company (%)
China Telecom Co., Ltd 391,148,034.01 32.39
China Mobile Co., Ltd 137,030,222.86 11.35
China Tietong Co., Ltd 67,330,347.84 5.58
China Potevio 63,315,523.93 5.24
China United Co., Ltd 22,725,524.66 1.88
Total 681,549,653.30 56.44
28. Sales tax and extra charges
Item As of 30 June 2013 As of 30 June 2012 Rate
Business tax 460,965.09 1,354,276.74 3%-5%
Education surcharge 1,668,410.39 1,208,463.86 3%、2%
Urban maintenance and
2,565,200.19 1,711,522.03 7%
construction tax
Others 11,503.28
Total 4,694,575.67 4,285,765.91
29. Sales expenses
Items As of 30 June 2013 As of 30 June 2012
Salary 22,286,765.42 19,085,787.64
Employee benefits 1,880,925.49 1,773,291.59
Housing accumulation funds 1,261,947.34 1,080,697.83
Union funds 238,137.23 203,934.33
Worker education funds 304,153.84 260,469.18
Social insurance premium 3,926,171.42 4,088,701.37
Depreciation expense 438,796.55 403,976.97
Lease expense 153,155.50 56,522.38
Office allowance & Others 6,844,885.69 7,955,007.81
Travel expenses 9,254,061.36 7,382,988.03
Business entertainment 14,427,339.98 15,066,525.46
Water and electricity fees 402,659.48 420,498.81
Low-valued consumables and amortize 92,747.81 150,584.20
Transport fees and transport damages 10,053,206.72 14,606,149.98
- 46 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Items As of 30 June 2013 As of 30 June 2012
Repair charge 149,818.82 605,116.13
Service charge 1,892,650.70 1,976,502.25
Advertising fees 372,783.11 394,725.56
Exhibition fees 57,500.00 60,047.47
Conference expenses 2,219,895.40 2,703,969.44
Sales service charge 1,138,934.81 2,023,017.91
Business publicity fees 487,840.68 777,631.99
Technical services charge 131,166.00 136,977.15
Consulting, intermediary, legal fees 186,697.56 82,787.22
Labor protection fees 339,015.04 457,172.70
Postage telephone and telegram fees 65,165.57 68,052.65
Co-ordination fee 1,284,522.65 1,341,431.84
Packing expenses 106,261.34 167,848.95
Insurance premium 746,023.16 779,074.79
Cost of Quality 7,014.89 7,325.68
Storage charges
Test fees 176,414.14 184,229.95
Equipment maintain fees 949,474.00 991,539.27
Others 397,417.21 626,047.83
Total 82,273,548.91 85,918,634.36
30. Administrative expenses
Items As of 30 June 2013 As of 30 June 2012
Salary expenses 8,876,366.36 8,245,429.31
Employee benefits 1,915,788.35 1,642,433.51
Union funds 251,001.70 233,160.36
Worker education funds 289,483.95 268,907.27
Social insurance premium 3,891,379.62 3,614,778.20
Depreciation expense 1,524,595.94 1,256,951.30
Amortization charge 300,390.80 464,536.65
Lease expense 2,612,956.35 4,114,901.81
Office allowance 1,661,645.73 3,027,588.59
Travelling expense 1,667,981.55 1,046,615.64
- 47 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Items As of 30 June 2013 As of 30 June 2012
Business entertainment 1,597,446.05 2,102,839.94
Insurance Expense 458,613.09 1,038,165.84
Water and electricity fees 499,345.22 429,460.73
Low-valued consumables and amortization 110,881.59 123,413.80
Technology development costs 30,618,867.19 27,095,886.31
Repair charge 461,578.12 795,685.64
Audit expenses 164,070.38 189,333.74
Labor protection fees 186,331.05 183,013.03
Director membership dues 166,923.08 183,300.51
Consulting, intermediary, legal fees 711,985.28 690,078.30
Environmental expenditure 31,300.00 25,650.00
Taxation 945,903.57 1,073,796.97
Conference expenses 551,019.09 541,207.03
Property management fees 758,993.80 745,478.30
Transport charge 508,925.35 602,173.29
Detect cost 41,136.99 40,404.46
Advertising fees 311,192.76 305,651.31
Site use fee 115,845.13 113,782.26
Others 317,680.48 309,405.23
Postal fees 25,714.10 25,256.21
Housing accumulation funds 1,253,989.20 1,164,854.95
Total 62,829,331.87 61,694,140.49
31. Financial expenses
Item As of 30 June 2013 As of 30 June 2012
Interest expense 13,618,333.70 18,263,504.59
Less: Interest income 2,139,988.73 -1,511,183.47
Exchange loss 62,968.20 17,764.99
Less: Exchange gain 191,643.55 -31,197.78
Bank charges 138,256.78 203,904.03
Others 105.24
Total 11,488,031.64 16,942,792.36
- 48 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
32. Investment income
(1) Details of Investment Income
Item As of 30 June 2013 As of 30 June 2012
Long-term equity investment income by cost method 84,149.16
Long-term equity investment income by equity method -1,967,352.65 1,462,045.66
Total -1,883,203.49 1,462,045.66
(2) Long-term equity investment income by cost method
Investee As of 30 June 2013 As of 30 June 2012 Reasons for movement
Nanjing Yuhua electroplating
— —
factory
Nanjing Yuhua Galvanization More dividends received
84,149.16 —
Factory
Total 84,149.16 —
(3)Long-term equity investment income by equity method
As of 30 June As of 30 June Reasons for movement
Investee
2013 2012
Nanjing Prachanda Live Optical Network Co.,
-2,559,926.08 1,249,537.60 Business fluctuations
Ltd
Nanjing Putian Datang Information and
477,145.68 134,863.31 Business fluctuations
Electric Company Ltd.
Nanjing Putian Zhongyou Telecommunication
-17,969.72 Business fluctuations
Co., Ltd.
Nanjing Putian Telecommunication
220,448.93 82,092.20 Business fluctuations
Technology Industry Park Co., Ltd
Nanjing Putian Telege Cable Co., Ltd. -105,021.18 13,522.27 Business fluctuations
Total -1,967,352.65 1,462,045.66
Explain of investment income
During the reporting period, no significant repatriation of investment income restrictions
33. Losses of devaluation of asset
Item As of 30 June 2013 As of 30 June 2012
Loss on bad debt 591,682.86 1,999,859.94
Total 591,682.86 1,999,859.94
- 49 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
34. Non-operating income
(1) Details of Non-operating Income
As of 30 June 2013 As of 30 June 2012
Included in the Included in the
current profits and current profits and
Item
Amount losses of the Amount losses of the
decriminalizes decriminalizes
amount amount
Gains from disposal of
36,352.80 36,352.80 356,787.74 356,787.74
non-current assets
Include: Gains from disposal
36,352.80 36,352.80 356,787.74 356,787.74
of fixed assets
Gains from disposal
of Intangible assets
Gains from debt
1,030.00 1,030.00
restructuring
Government grants 1,793,770.76 1,793,770.76 779,939.18 779,939.18
Others 97,544.00 97,544.00 68,700.00 68,700.00
Total 1,927,667.56 1,927,667.56 1,206,456.92 1,206,456.92
(2) Details of Government Subsidy
As of 30 June As of 30 June
Item Note
2013 2012
VAT refunding due to being welfare
Refund of VAT 1,391,604.16 359,938.99
production enterprises
Development funds from software and
Subsidy income 402,166.60 420,000.19
information services of Nanjing
Total 1,793,770.76 779,939.18
35. Non-operating expense
As of 30 June 2013 As of 30 June 2012
Included in the Included in the
current profits and current profits and
Item
Amount losses of the Amount losses of the
decriminalizes decriminalizes
amount amount
- 50 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 30 June 2013 As of 30 June 2012
Included in the Included in the
current profits and current profits and
Item
Amount losses of the Amount losses of the
decriminalizes decriminalizes
amount amount
Loss from disposal of
42,279.87 42,279.87
non-current assets
Include: loss from disposal
42,279.87 42,279.87
of fixed assets
Loss from debt restructuring 30,865.75 30,865.75
External donation 1,000.00 1,000.00
Others 568,250.10 568,250.10 340,981.40 340,981.40
Total 600,115.85 600,115.85 383,261.27 383,261.27
36. Income tax
Item As of 30 June 2013 As of 30 June 2012
Current income tax expense calculated to tax law and relevant
3,597,267.56 2,022,892.44
provisions
Deferred income tax charges
Total 3,597,267.56 2,022,892.44
37. 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)
As of 30 June As of 30 June
Item Code
2013 2012
-2,719,217.34 6,038,203.37
Net profit attributable to ordinary shareholders of parent
P0
company(Ⅰ)
-3,466,018.77 5,763,929.27
Net profit attributable to the company's ordinary shareholders
after P0
deducting non-recurring gains and losses(Ⅱ)
215,000,000.00 215,000,000.00
Amount of common stock at the year-beginning S0
Increase of amount of common stock owing to capital reserve S1
- 51 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
transferred to share capital or distribution of stock dividend
Increase of amount of common stock owing to issue of bonds
Si
newly or bonds issued to be transfer to common stock
Decrease of amount of common stock due to purchase-back
Sj
common stock ,etc
Decrease of amount of common stock in the reporting period Sk
Amount of months in the reporting period M0 6
Accumulated months since the second month when increase of
Mi
amount of common stock
Accumulated months since the second month when decrease of
Mj
amount of common stock
Average weighted amount of common stock outstanding S 215,000,000.00 215,000,000.00
Basic earnings per share(Ⅰ) -0.013 0.028
Basic earnings per share(Ⅱ) -0.016 0.027
Net profit attributable to ordinary shareholders of parent
P1
company after adjustment(Ⅰ)
Net profit attributable to the company's ordinary shareholders
after P1
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
215,000,000.00 215,000,000.00
consideration of diluted affect
Diluted earnings per share(Ⅰ) -0.013 0.028
Diluted earnings per share(Ⅱ) -0.016 0.027
(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
- 52 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
38. Other comprehensive income
As of 30 June As of 30 June
Item
2013 2012
4. Conversion difference arising from foreign currency financial
293,104.46 -93,168.18
statement
Subtotal 293,104.46 -93,168.18
Total 293,104.46 -93,168.18
39. Item description in the statement of cash flow
(1) Other cash receipts relating to operating activities
Item As of 30 June 2013
Interest income 2,139,988.73
Temporary receipts and repayment of temporary
payment 12,005,844.68
Others 191,643.55
Total 14,337,476.96
(2) Other cash payments relating to operating activities
Item As of 30 June 2013
Temporary payment 12,382,085.31
Various expenses 82,450,591.89
Others 201,330.22
Total 95,034,007.42
40. Supplementary information about consolidated statement of cash flows
(1) Supplementary information about consolidated statement of cash flows
- 53 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 As of 30 June 2012
1、Adjustment of net profit into operation activity cash flow:
Net profit -1,480,723.02 12,343,535.18
Add: provision for depreciation of assets 591,682.86 1,999,859.94
Depreciation of fixed assets, consumption of oil gas assets and
5,378,053.88 4,675,046.17
depreciation of productive biological assets
Amortization of intangible assets 722,546.81 714,154.29
Amortization of long-term prepayments
Loss from disposal of fixed assets, intangible assets and other long
-36,352.80 -275,457.62
term assets (gain 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 “-”) 13,618,333.70 18,020,879.16
Investment loss (gain is listed with “-”) 1,883,203.49 -1,462,045.66
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 “-”) 778,710.84 -43,288,617.28
Decrease of operational accounts receivable (increase is listed with
-153,427,525.04 -158,004,011.54
“-”)
Increase of operational accounts payable (decrease is listed with
-3,283,218.67 137,067,092.81
“-”)
Others
Net cash flow arising from operation activities -135,255,287.95 -28,209,564.55
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 280,748,252.81 301,632,757.53
Less: Balance of cash at period-begin 429,693,529.41 310,453,749.89
Add: Balance of cash equivalent at period-end
Less: Balance of cash equivalent at period-begin
Net increase in cash and cash equivalent -148,945,276.60 -8,820,992.36
(2) Cash and cash equivalent
- 54 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 As of 30 June 2012
Cash 280,748,252.81 429,693,529.41
Cash in hand 73,773.29 15,216.21
May at any time is used to pay the bank deposit 246,815,192.14 429,678,313.20
May at any time for the payment of the other monetary funds 33,859,287.38
Can be used for the storage of the central bank money to pay
Deposit money of payment
Dismantle put trade payment
Cash equivalent
Three months due debt investments
Cash and cash equivalent at the year end 280,748,252.81 429,693,529.41
VIII .Related parties and related transaction
1. Condition of parent company
Registration
Name of the
Relation Type of Registered Legal Business capital
parent company
entity Address representative nature (unit:RMB’000
0
No. 2 Tudi 2
China Potevio Road, Zhongguan
Parent State-owne informatio
Company village economy Xing Wei 308,694.00
Company d n industry
Limited zone, Haidian
district, Beijing
(Continued)
The
The proportion of voting
Name of the company's
Rate of Share Held between Parent rights between parent Organization
parent Ultimate
Company and the Company (%) company and the company code
company controlling
(%)
party
China Potevio China
Company 53.49 53.49 Potevio 71093155-5
Limited Corporation
2. Condition of subsidiaries
- 55 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Legal
Type of Type of Registered Business
Name of the companies Representativ
subsidiaries Entity Address Nature
e
Nanjing Southern Sales
Limited
Telecommunications Trading Nanjing Hong Wang telecommunication
company
Company Limited products
Nanjing Bada Manufacture of
Limited
Telecommunications Co., Manufacture Nanjing Jin Qiao telecommunication
company
Ltd. s
Manufacture
Nanjing Putian Information
Limited and sale of
Technology Manufacture Nanjing Yong Shu Lu
company telecommunication
Company Ltd.
s
Manufacture
Nanjing Putian Telege Limited and sale of
Manufacture Nanjing Baosun Fu
Intelligent Building Ltd company telecommunication
s
Putian Telecommunications company Sale of
HongKon
(Hong Kong) limited by Manufacture Liang Sun telecommunication
g
Co., Ltd. shares s
Web-based
Beijing Picom
Limited electronic products,
Telecommunications Manufacture Beijing Junhai Lu
company digital transmission
Equipment Ltd.
equipment
Manufacture
Nanjing Putian WongShi Limited and sale of
Manufacture Nanjing Qiang Sun
Telecommunications Co., Ltd. company telecommunication
s
Manufacture
Nanjing Putian Changle
Limited and sale of
Telecommunications Manufacture Nanjing Qiang Wang
company telecommunication
Equipment Co., Ltd
s
Manufacture
Nanjing Putian Network Limited Yingqian and sale of
Manufacture Nanjing
Company Ltd. company Guan telecommunication
s
Manufacture
Nanjing Putian
Limited and sale of
Telecommunication Manufacture Nanjing Chuanxi Liu
company telecommunication
Technology Co., Ltd
s
- 56 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Legal
Type of Type of Registered Business
Name of the companies Representativ
subsidiaries Entity Address Nature
e
Product and sales
Nanjing Mennekes Electric Limited
Manufacture Nanjing Hong Wang socket for
Appliances Ltd. company
industrial use
(Continued)
The proportion of
Rate of Share held
Registration voting rights
between parent Organization
Name of the companies Capital (unit: between parent
company and the code
Yuan) company and the
Company (%)
company (%)
Nanjing Southern
Telecommunications 34,205,147.83 98.24 98.24 13492047-8
Company Limited
Nanjing Bada
Telecommunications Co., 11,301,400.00 60.00 60.00 13554048-5
Ltd.
Nanjing Putian Information
Technology 14,000,000.00 99.98 99.98 13498233-7
Company Ltd.
Nanjing Putian Intelligent
12,000,000.00 45.77 45.77 72172045-4
Building Ltd
Putian Telecommunications
(Hong Kong) HKD 2,000,000 90.00 90.00 #61770414
Co., Ltd.
Beijing Picom
Telecommunications USD 500,000 51.00 51.00 717741092
Equipment Ltd.
Nanjing Putian WongShi
90,190,000.00 99.42 99.42 71093784-2
Telecommunications Co., Ltd.
Nanjing Putian Changle
Telecommunications 10,000,000.00 50.70 50.70 13554526-X
Equipment Co., Ltd
Nanjing Putian Network
10,000,000.00 78.00 78.00 74236858-4
Company Ltd
Nanjing Putian
Telecommunication 5,000,000.00 70.00 70.00 13513422-5
Technology Co., Ltd
Nanjing Mennekes Electric USD 5,200,000 75.00 75.00 60895120-X
- 57 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
The proportion of
Rate of Share held
Registration voting rights
between parent Organization
Name of the companies Capital (unit: between parent
company and the code
Yuan) company and the
Company (%)
company (%)
Appliances Ltd.
3. Condition of the joint ventures and associates
(1) Joint venture
Registration Voting
Lega Proportion capital proporti
Invest Place of Relation
l Business of on in Organizati
ed Types registrati ship with
pers nature shareholdi invested on code
units on the company
on ng（%） compan
y (%)
Nanjing
Prachand Optical
Sino-forei Zhang
a Live communicat 37,088,800 55553484-
gn joint Nanjing Shenw 50 .00 50 Joint venture
Optical ion of X
venture ei
Network production
Co., Ltd
(2) Affiliated venture
Registrat Voting
ion proporti
Proporti
Place of capital on in Relation
Invested Legal Business on of Organizat
Types registrati investe ship with
units person nature sharehol ion code
on d the company
ding (%)
compan
y (%)
Nanjing Putian Communic
Domestic
Datang ation 5,000
(limited Yan Affiliated 77701905
Information Nanjing products ,000. 40 40
liability Yaoming 00 venture 0
and Electric production
company)
Company Ltd. sales, etc
Domestic Communic
Nanjing Putian
(limited ation
Zhongyou 1,000 Affiliated 24970220
liability Nanjing ZhaoTiwu products ,000 30 30
Telecommunica venture 0
company production
tion Co., Ltd.
) sales, etc
337,5
Nanjing Putian Domestic Nanjing ShanYou Industrial 48,14
49.64 49.64 Affiliated 66737288
- 58 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Registrat Voting
ion proporti
Proporti
Place of capital on in Relation
Invested Legal Business on of Organizat
Types registrati investe ship with
units person nature sharehol ion code
on d the company
ding (%)
compan
y (%)
High (limited Kong park venue 1.29 venture 1
Technology liability rental
Industry Co., company manageme
Ltd. )） nt etc
4. Other related parties
Relationship with
Company Name Organization code
the company
Controlled by the parent
Nanjing Putian Swanking Electrical Co., Ltd 724594270
company
Controlled by controlling
Shenzhen Putian Lingyun Electronics Co. Ltd shareholder of the parent 732050660
company
Shanghai Putian Post And Telecommunications Controlled by the parent
607285751
Technology Co., Ltd. company
Beijing Great Gragon Information Technology Controlled by the parent
743349502
International Co.,Ltd. company
Chengdu Putian Telecommunications Cable Controlled by the parent
20193968X
CO., LTD company
Controlled by the parent
Putian Institute of Technology Co., Ltd. 710929105
company
Wuhan is Ablaze Putian information technology Controlled by the parent
695345127
Co., Ltd. company
5. Related transaction
(1) Purchasing goods, accept services related party transactions
As of 30 June 2013
Pricing policy and Ratio in
Related transaction
Related Parties decision-making similar
content Amount
processes trade
amount %
- 59 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Nanjing Prachanda Live Optical
Telecommunications Market Pricing 23,300,743.64 2.33
Network Co., Ltd
China Putian Information Industry
Telecommunications Market Pricing 11,021,914.53 1.10
Co., Ltd.
Chengdu Putian
Telecommunications Cable Co., Telecommunications Market Pricing 3,080,417.95 0.31
Ltd.
Total 37,403,076.12 3.74
As of 30 June 2012
Pricing policy and Ratio in
Related transaction
Related Parties decision-making similar
content Amount
processes trade
amount %
China Putian Information Industry
Telecommunications Market Pricing 25,504.27 0%
Co., Ltd.
Nanjing Putian Datang
Information and Electric Company Telecommunications Market Pricing 258,274.34 0.02%
Ltd.
Nanjing Putian Swanking
Telecommunications Market Pricing 719,725.78 0.06%
Electrical Co., Ltd
Nanjing Prachanda Live Optical
Telecommunications Market Pricing 37,213,349.64 3.20%
Network Co., Ltd
Wuhan Flames Putian Information
Telecommunications Market Pricing 1,449,358.97 0.12%
Technology Co., Ltd.
Nanjing Putian
Telecommunications Market Pricing 30,034.19 0%
Telecommunications Co., Ltd.
Total 39,696,247.19 3.40%
(2) The sale of goods, providing labor services related transaction
As of 30 June 2013
Pricing policy and Ratio in
Related transaction
Related Parties decision-making similar
content Amount
processes trade
amount %
China Putian Information Industry
Telecommunications Market Pricing 66,840,783.74 5.82
Co., Ltd.
Putian Technology Research Telecommunications Market Pricing 489,564.10 0.04
- 60 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Institute Co., Ltd.
Nanjing Putian Post
Telecommunications Market Pricing 107,692.31 0.01
Telecommunications Co., Ltd.
Nanjing Prachanda Live Optical
Telecommunications Market Pricing 12,129.05 -
Network Co., Ltd
Nanjing Putian Datang
Information and Electric Company Telecommunications Market Pricing 2,431.63 -
Ltd.
Total 67,452,600.83 5.87
As of 30 June 2012
Pricing policy and Ratio in
Related transaction
Related Parties decision-making similar
content Amount
processes trade
amount %
China Putian Information Industry
Telecommunications Market Pricing 49,394,450.80 3.69
Co., Ltd.
Putian Technology Research
Telecommunications Market Pricing 158,119.66 0.01
Institute Co., Ltd.
Nanjing Putian Swanking
Telecommunications Market Pricing 4,477.69 0.00
Electrical Co., Ltd
Nanjing Putian Post
Telecommunications Market Pricing 70,256.41 0.01
Telecommunications Co., Ltd.
Total 49,627,304.56 3.71
(3)Related leasing
Date start Date for Accordance for
rental fee for the
Asset for for termination reorganization
Lessor Lessee period
leasing leasing of leasing of rental income
Nanjing
Nanjing Putian High Putian
Building and
Technology Industry telecommu 2013-01-01 2013-12-31 Market Pricing 5,473,012.56
land
Co., Ltd. nication
Co., Ltd
(4)Related guarantee
- 61 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Amount of Date start Whether the
Assurance Due date for
Secured party guarantee for guarantee is
Provider guarantee
guarantee carried out
China Putian Information Nanjing Putian
20,000,000.00 2012-8-12 2013-8-12 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
30,000,000.00 2012-8-20 2013-8-20 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
20,000,000.00 2012-8-28 2013-8-28 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
30,000,000.00 2012-9-5 2013-9-5 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
20,000,000.00 2012-9-10 2013-9-10 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
30,000,000.00 2012-9-16 2013-9-16 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
30,000,000.00 2012-9-23 2013-9-23 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
44,000,000.00 2013-5-17 2014-5-17 No
Industry Co., Ltd. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
30,000,000.00 2012-11-23 2013-11-23 No
Industry Co., Ltd. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
10,000,000.00 2012-9-13 2013-9-13 No
Industry Co., Ltd. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
10,000,000.00 2013-5-22 2014-5-22 No
Industry Co., Ltd. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
20,000,000.00 2013-1-14 2014-1-14 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian Telege
30,000,000.00 2012-12-11 2013-12-11 No
Industry Group Co. Intelligent Building Ltd
Nanjing Putian Nanjing Putian Telege
20,000,000.00 2012/12/05 2013/12/04 No
telecommunication Co., Ltd. Intelligent Building Ltd
Nanjing Southern
Nanjing Putian
Telecommunications Company 20,000,000.00 2012/08/01 2013/07/31 No
telecommunication Co., Ltd.
Limited
Nanjing Putian Nanjing Putian Telege
10,000,000.00 2012/09/19 2013/09/19 No
telecommunication Co., Ltd. Intelligent Building Ltd
Nanjing Putian Nanjing Putian Telege
10,000,000.00 2012/10/09 2013/10/09 No
telecommunication Co., Ltd. Intelligent Building Ltd
- 62 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
6. Payables and receivables of related parties
(1) The accounts affiliated parties shown in the list below money situation
Name of the related As of 30 June 2013 As of 31 December 2012
Item
parties Book amount Provision Book amount Provision
China Putian
Accounts
Information Industry 45,254,394.79 2,936.37 20,459,786.64 -
receivable
Co., Ltd.
Shanghai Putian
Accounts
Youtong Technology 13,341,700.00 13,341,700.00
receivable
Co., Ltd.
Accounts Shanghai Putian
334,200.00 1,677,499.70
receivable Network Company Ltd.
Nanjing Putian Post
Accounts
Telecommunications 224,672.80 225,072.80
receivable
Co., Ltd.
Nanjing Prachanda Live
Accounts
Optical Network Co., 6,141.50
receivable
Ltd
Putian Information
Accounts
Technology Research 16,635.00
receivable
Co.,Ltd
China Putian
Accounts
Information Industry 500,000.00
Prepayable
Co., Ltd.
Beijing Picom
Other
Telecommunications 28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
receivables
Equipment Co., Ltd
(2) The cope with affiliated parties shown in the list below money situation
Item Amount at the year Amount at the
Name of the related parties
end year-beginning
Accounts Nanjing Prachanda Live Optical Network Co.,
51,029,590.92 53,080,931.94
payable Ltd
Accounts
China Putian Information Industry Co., Ltd. 16,112,160.00 9,177,946.90
payable
Accounts
Nanjing Putian Swanking Electrical Co., Ltd 158,830.47 388,590.03
payable
Accounts Nanjing Putian Telecommunication Technology
222,381.72
payable Industry Park Co., Ltd
Accounts Nanjing Putian Datang information electronic 202,094.59
- 63 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item Amount at the year Amount at the
Name of the related parties
end year-beginning
payable Co., Ltd
Advances from
China Putian Information Industry Co., Ltd. 8,158,434.00
customers
Nanjing Putian High Technology Industry Co.,
Other payables 1,200,118.40
Ltd
IX．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
In addition the Company provides guarantees to related parties, the inaction of other non-related parties to provide
security matters.
3. Other contingent liabilities
None
X. Commitments
1. Significant commitment matters
None
2. Early promise fulfillment situation
None
XI. Events occurring after the balance sheet date
1. Important matters after balance sheet date
None
2. Balance sheet date profit allocation illustrate
None
3. Other matters after balance sheet date
None
XII. Other significant matters
1. Financial assets and financial liabilities in foreign currency
- 64 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
the
cumulative
As of 31 Current Current
changes in As of 30 June
Items December changes in provision for
fair value 2013
2012 fair value impairment
included in
equity
Financial assets:
3. Loans and receivables 8,233,017.49 7,277,704.87
Total 8,233,017.49 7,277,704.87
Financial liability 15,025,300.33 7,575,525.34
2. Other significant matters
None
XIII. Notes to main items of financial statement of parent company
1. Account receivable
(1)Classification of accounts receivable
As of 30 June 2013
Book balance Reserve for bad debts
Item
Percentage Percentage
Amount Amount
(%) (%)
1. Single amount dramatic and individual
provision for the accounts receivable
2. Classification as the group of
583,990,607.70 99.68 6,448,216.39 1.10
provision for account receivable
Group1 194,047,139.06 33.12
Group 2 367,273,566.64 62.69
Group 3 22,669,902.00 3.87 6,448,216.39 28.44
3. Single amount not significant but
1,862,635.83 0.32 1,862,635.83 100.00
single provision for accounts receivable
Total 585,853,243.53 8,310,852.22
As of 31 December 2012
Book balance Reserve for bad debts
Item
Percentage Percentage
Amount Amount
(%) (%)
1. Single amount dramatic and individual
provision for the accounts receivable
- 65 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2. Classification as the group of provision
454,380,793.43 99.58 6,158,397.89 1.36
for account receivable
Group1 134,392,323.92 29.45
Group 2 304,589,674.95 66.76
Group 3 15,398,794.56 3.37 6,158,397.89 39.99
3. Single amount not significant but
1,894,067.63 0.42 1,894,067.63 100.00
single provision for accounts receivable
Total 456,274,861.06 8,052,465.52
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.
Adopt age analysis provision in group as follows:
As of 30 June 2013 As of 31 December 2012
Age Proportion Reserve for Proportion Reserve for bad
Book balance (%) bad debts Book balance (%) debts
Within 1
year
157,797,931.56 72.81% 121,288,874.20 80.97%
(contain 1
year)
1 to 2 years 29,001,665.35 13.38% 15,555,295.54 10.38%
2 to 3 years 20,175,971.52 9.31% 683,427.15 3,495,141.56 2.33% 349,514.16
3 years
9,741,472.63 4.5% 5,764,789.25 9,451,807.18 6.32% 5,808,883.73
above
3 to 4 years 2,665,987.76 1.23% 799,796.33 2,284,059.19 1.53% 685,217.76
4 to 5 years 2,056,354.19 0.95% 822,541.68 3,274,986.10 2.19% 1,309,994.44
5 years or
5,019,130.68 2.32% 4,142,451.24 3,892,761.89 2.6% 3,813,671.53
above
Total 216,717,041.06 -- 6,448,216.39 149,791,118.48 -- 6,158,397.89
Closing single amount not significant but single provision for accounts receivable
Receivables Book amount Bad debt Proportion Reason
Age longer
1,748,580.14 1,748,580.14 100.00%
M/S WHISTLER TELECOM (PVT) LTD cannot be
- 66 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
recalled
Age longer
101,555.69 101,555.69 100.00% cannot be
PRADUFA recalled
Age longer
12,500.00 12,500.00 100.00% cannot be
China Unicom Nanjing Branch recalled
Total 1,862,635.83 1,862,635.83 —— ——
(2) Current payback or return of receivables
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) Written -off of accounts receivable in the current period
None
(4) Accounts receivable due from shareholder who has more than 5% (including 5 %) voting shares of the
Company at year-end
At 30 June 2013, amount of RMB 26,606,165.74 Yuan is due from China Putian Information Company Limited
Parent company, aging within 3 year, which include RMB 1,477.12 Yuan 2 to 3 year, withdrawing bad debts RMB
147.71 Yuan at 30 June 2013.
At 31 December 2012, amount of RMB 15,911,331.62 Yuan is due from China Putian Information Company Limited,
Parent company, aging within 1 year, no provision had been provided at 31 December 2012.
(5) Top 5 debtors of accounts receivable
Proportion of
Relationship with the
Name of the debtors Amount Aging total amount
Company
(%)
Within 1
China Telecom Co., Ltd. Jiangsu 82,978,417.53 14.16
Non-related party year
Branch
2,378.00 2 to 3 year 0.01
Within 1
18,353,708.29 3.13
Agricultural Bank of China Non-related party year
15,149,360.70 1 to 2 year 2.59
Within 1
19,807,233.53 3.38
China Putian Information Industry year
Parent company
Co., Ltd. 6,797,455.09 1 to 2 year 1.16
1,477.12 2 to 3 year -
Nanjing Hehao Communication Within
Non-related party 26,588,864.00 4.54
Technology Co., Ltd. 1year
China Telecom Co., Ltd. Xi'an Within
Non-related party 10,437,092.73 1.78
Branch 1year
- 67 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Proportion of
Relationship with the
Name of the debtors Amount Aging total amount
Company
(%)
5,342,760.06 1 to 2 year 0.91
Total —— 185,458,747.05 —— 31.66
(6) Accounts receivable of related parties accounts
Relationship with the Proportion of total
Name of the debtors Amount
Company amount (%)
China Putian Information Industry
Parent company 26,606,165.74 4.54
Co., Ltd
Shanghai Putian Youtong Technology Controlled by the same
13,341,700.00 2.28
Co., Ltd. parent company
Beijing Dragon Oriental International Controlled by the same
7,396,003.60 1.26
Information Technology Co., Ltd.
parent company
Nanjing Prachanda Live Optical
Affiliated venture 6,141.50 -
Network Co., Ltd
Total 47,350,010.84 8.08
(7) Balance of accounts receivable in foreign currencies
As of 30 June 2013 As of 31 December 2012
Foreign currency Original Exchange RMB Original Exchange RMB
currency rate converted currency rate converted
USD 299,350.51 6.18 1,850,135.83 433,361.90 6.2855 2,723,896.22
Total —— —— 1,850,135.83 —— —— 2,723,896.22
2. Other receivables
(1)Classification of other receivables
As of 30 June 2013
Book balance Reserve for bad debts
Item
Percentage Percentage
Amount Amount
(%) (%)
1. Single amount dramatic and individual
28,912,122.71 28.9 28,912,122.71 100.00
provision for the accounts receivable
2. Classification as the group of provision for
67,039,254.92 67.02 8,401,050.67 12.53
account receivable
- 68 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Group1 34,428,451.07 34.42 4,800,000.00 13.94
Group 2 23,593,027.85 23.58 - -
Group 3 9,017,776.00 9.02 3,601,050.67 39.93
3. Single amount not significant but single
4,085,166.33 4.08 4,085,166.33 100.00
provision for accounts receivable
Total 100,036,543.96 41,398,339.71
As of 31 December 2012
Book balance Reserve for bad debts
Item
Percentage Percentage
Amount Amount
(%) (%)
1. Single amount dramatic and individual
28,912,122.71 29.47 28,912,122.71 100.00
provision for the accounts receivable
2. Classification as the group of provision for
65,108,059.21 66.37 8,625,173.32 13.25
account receivable
Group1 35,494,184.93 36.18 5,400,000.00 15.21
Group 2 15,276,729.67 15.57
Group 3 14,337,144.61 14.61 3,225,173.32 22.50
3. Single amount not significant but single
4,085,166.33 4.16 4,085,166.33 100.00
provision for accounts receivable
Total 98,105,348.25 41,622,462.36
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.
Large amount of other receivables nature or content
Name of the debtors Book balance Reserve for bad debts Proportion(%) reason
Beijing Picom
Age longer cannot be
Telecommunications 28,912,122.71 28,912,122.71 100%
recalle
Equipment Ltd
Adopt age analysis provision in group as follows:
As of 30 June 2013 As of 31 December 2012
Age Reserve for Proportion Reserve for
Book balance Proportion (%) bad debts Book balance (%) bad debts
2,464,861.10 5.67% 23,467,986.51 47.09%
Within 1 year
- 69 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
(contain 1
year)
1 to 2 years 18,125,712.38 41.72% 1,088,906.03 2.19%
2 to 3 years 1,365,891.54 3.15% 136,589.15 2,834,321.87 5.69% 283,432.19
3 years above 21,489,762.05 49.46% 8,264,461.52 22,440,115.13 45.03% 8,341,741.13
3 to 4 years 17,896,646.10 41.19% 5,368,993.83 19,530,564.28 39.19% 5,859,169.28
4 to 5 years 1,027,697.10 2.37% 411,078.84 711,632.00 1.43% 284,653.00
5 years or
2,565,418.85 5.9% 2,484,388.85 2,197,918.85 4.41% 2,197,918.85
above
Total 43,446,227.07 -- 8,401,050.67 49,831,329.54 -- 8,625,173.32
(2) Current payback or return of receivables
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
During this period, no written-off or written off has been recovered in other receivables
(4) Accounts receivable due from shareholder who has more than 5% (including 5 %) voting shares of the
Company at year-end
The current held no more than 5% (including 5%) voting shares shareholders outstanding.
(5) Large amount of other receivables nature or content
Name of the debtors Amount Other receivables nature or content
Beijing Picom Telecommunications
28,912,122.71 Receivables and payables
Equipment Ltd
Yuhua Peoples’ Government Nanning Office 16,000,000.00 Receivables and payables
Total 44,912,122.71 ——
(6) Top 5 debtors of other receivables
Proportion of
Relationship with the
Name of debtors Amount Aging total amount
Company
(%)
Beijing Picom Telecommunications More than
Subsidiary 28,912,122.71 28.90
Equipment Ltd 6 years
Yuhua Peoples’ Government 3 to 4
Non –related party 16,000,000.00 16.00
Nanning Office years
Nanjing Putian Telecommunication Subsidiary 689,652.33 Within 1 0.69
- 70 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Proportion of
Relationship with the
Name of debtors Amount Aging total amount
Company
(%)
Technology Co., Ltd year
5,941,907.03 1 to 2 year 5.94
Putian Telecommunications (Hong 4 to 5
Subsidiary 4,085,166.33 4.08
Kong) Co., Ltd. years
Within 1
Nanjing Putian Information 620,892.71 0.62
Subsidiary year
Technology Company Ltd.
648,320.12 1 to 2 year 0.65
Total —— 56,898,061.23 —— 56.88
(7) Other receivables from related parties
Relationship with the Proportion of
Name of debtors Amount
Company total amount (%)
Beijing Picom Telecommunications
Subsidiary 28,912,122.71 28.90
Equipment Ltd
Nanjing Putian Telecommunication
Subsidiary 6,631,559.36 6.63
Technology Co., LTD
Putian Telecommunications (Hong Kong)
Subsidiary 4,085,166.33 4.08
Co., Ltd.
Nanjing Putian Information Technology
Subsidiary 1,269,212.83 1.27
Company Ltd.
Nanjing Putian Telecommunication Controlled by the same
102,955.98 0.10
Technology Industry Park Co., Ltd. parent company
Nanjing Mennekes Electric Appliances
Subsidiary 87,885.33 0.09
Co., Ltd.
Total 41,088,902.54 41.07
3. Long-term equity investments
(1) List of Information of Long-term Equity Investment
- 71 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Share Voting
holding right
percent proport
age of ion of
Book balance at Book balance at the the
Invested Accountin Initial cost of
the end of 31 Movement the end of 31 Compa Compa
units g Method investment
December 2012 December 2012 ny ny
among among
investe investe
d units) d units)
(%) (%))
Nanjing Southern
Cost
Telecommunications 33,175,148.00 33,175,148.00 33,175,148.00 98.24 98.24
Method
Company Limited
Nanjing Putian
Cost
Telege Intelligent 3,320,003.45 3,320,003.45 3,320,003.45 45.77 45.77
Method
Building Ltd.
Nanjing Putian
Changle Cost
2,610,457.00 2,610,457.00 2,610,457.00 50.70 50.70
Telecommunications Method
Equipment Co., Ltd.
Nanjing Bada
Cost
Telecommunications 5,610,000.00 5,610,000.00 5,610,000.00 60.00 60.00
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
Network Company 9,146,455.13 7,741,140.41 7,741,140.41 78.00 78.00
Method
Ltd.
Putian
Telecommunications Cost
1,910,520.00 1,910,520.00 1,910,520.00 90.00 90.00
(Hong Kong) Co., Method
Ltd.
Nanjing Putian
Information Cost
13,860,000.00 13,860,000.00 13,860,000.00 99.98 99.98
Technology Method
Company 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
- 72 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Share Voting
holding right
percent proport
age of ion of
Book balance at Book balance at the the
Invested Accountin Initial cost of
the end of 31 Movement the end of 31 Compa Compa
units g Method investment
December 2012 December 2012 ny ny
among among
investe investe
d units) d units)
(%) (%))
Beijing Picom
Cost
Telecommunications 1,854,910.00 1,854,910.00 1,854,910.00 51.00 51.00
Method
Equipment Ltd
Nanjing Yahua
Cost
Galvanization 420,915.00 420,915.00 420,915.00 10.00 10.00
Method
Factory
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 2,759,925.47 477,145.68 3,237,071.15 40.00 40.00
and Electric Method
Company Ltd
Nanjing Putian
Zhongyou Equity
300,000.00 216,145.33 216,145.33 30.00 30.00
Telecommunication Method
Co., Ltd.
Nanjing Putian
Telecommunication Equity
167,548,141.29 168,859,901.16 220,448.93 169,080,350.09 49.64 49.64
Technology Industry Method
Park 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 Cost
- 3,113,727.00 3,113,727.00 17.79 17.79
Bio-Tech Co., Ltd. Method
Nanjing Prachanda
Live Optical Equity 13,544,400.00 15,711,240.73 2,440,073.92 18,151,314.65 50.00 50.00
Network Co., Ltd Method
- 73 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Share Voting
holding right
percent proport
age of ion of
Book balance at Book balance at the the
Invested Accountin Initial cost of
the end of 31 Movement the end of 31 Compa Compa
units g Method investment
December 2012 December 2012 ny ny
among among
investe investe
d units) d units)
(%) (%))
Total 334,861,688.87 376,330,119.77 3,137,668.53 379,467,788.30 —— ——
(Continued)
Impairment provision
Invested Cash dividends during
Impairment provision withdrawn during the
units the period
period
Nanjing Southern Telecommunications
Company Limited
Nanjing Putian Telege Intelligent
Building Ltd.
Nanjing Putian Changle
Telecommunications Equipment Co.,
Ltd.
Nanjing Bada Telecommunications Co.,
Ltd
Nanjing Putian Wongshi
Telecommunications Co., Ltd.
Nanjing Putian Network Company Ltd.
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.
- 74 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Impairment provision
Invested Cash dividends during
Impairment provision withdrawn during the
units the period
period
Nanjing Putian Datang Information and
Electric Company Ltd
Nanjing Putian Zhongyou
Telecommunication Co., Ltd.
Nanjing Putian High Technology
Industry 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. Operating revenues and costs
(1) Operating revenues
Item As of 30 June 2013 As of 30 June 2012
Main operating revenue 713,341,159.34 879,294,779.90
Other operating revenue 12,273,902.91 14,741,469.83
Total 725,615,062.25 894,036,249.73
Operating cost 655,279,644.09 818,400,146.13
(2) Main Business (In terms of industry)
As of 30 June 2013 As of 31 December 2012
Item Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Communications equipment
713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
manufacturing industry
Total 713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
(3) Main Business (In terms of different products)
As of 30 June 2013 As of 31 December 2012
Item Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Communication products 713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
Total 713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
- 75 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
(4) Main Business (In terms of different regions)
As of 30 June 2013 As of 31 December 2012
Item Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Domestic market 713,189,349.68 644,657,596.57 876,868,985.63 803,591,754.40
Oversea market 151,809.66 104,012.01 2,425,794.27 2,070,766.34
Total 713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
(5) The amount of operating revenues received from the top 5 customers this year
Proportion taking in total
Item operating revenues operating income of the
Company (%)
China Telecom Co., Ltd 376,075,240.58 51.83
China Mobile Co., Ltd 131,521,666.66 18.13
China United Network Co., Ltd 53,048,666.22 7.31
Nanjing Hehao Communication Technology Co.,
22,725,524.66 3.13
Ltd.
China Comservice Fujian Logistics Co. 14,602,650.80 2.01
Total 597,973,748.92 82.41
5. Investment income
(1) Details of Investment Income
Item As of 30 June 2013 As of 30 June 2012
Long-term equity investment income by cost method 4,576,700.00
Long-term equity investment income by equity
-1,862,331.47 1,448,523.39
method
Total -1,862,331.47 6,025,223.39
(2) Long-term equity investment income by cost method
Investee As of 30 June 2013 As of 30 June 2012 Reasons for movement
Nanjing Mennekes Electric
Appliances Co., Ltd. According to the cost method
Nanjing Putian Telege Intelligent According to the company’s
4,576,700.00
Building Ltd. uniform distribution police
Nanjing Putian Changle
Telecommunications Equipment Business performance
Co., Ltd. fluctuations
- 76 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Investee As of 30 June 2013 As of 30 June 2012 Reasons for movement
Nanjing Yuhua Galvanization Business performance
Factory fluctuations
Total 4,576,700.00
(3) Long-term equity investment income by equity method
Investee As of 30 June 2013 As of 30 June 2012 Reasons for movement
Nanjing Prachanda Live Optical
-2,559,926.08 1,249,537.60
Network Co., Ltd Business fluctuations
Nanjing Putian Datang Information
477,145.68 134,863.31
and Electric Company Ltd. Business fluctuations
Nanjing Putian Zhongyou
-17,969.72
Telecommunication Co., Ltd. Business fluctuations
Nanjing Putian High Technology
220,448.93 82,092.20
Industry Co., Ltd Business fluctuations
Total -1,862,331.47 1,448,523.39
Explanation of investment income
None of significant limitation of the repatriation of investment income
6. Supplementary information about consolidated statement of cash flows
Item As of 30 June 2013 As of 30 June 2012
1、Adjustment of net profit into operation activity cash flow：
Net profit -13,109,556.68 -4,605,755.52
Add: provision for depreciation of assets 34,764.05 1,008,607.19
Depreciation of fixed assets, consumption of oil gas assets and
2,420,609.59 5,346,677.97
depreciation of productive biological assets
Amortization of intangible assets 423,561.03 448,236.55
Amortization of long-term prepayments
Loss from disposal of fixed assets, intangible assets and other
-69,124.11
long term assets (gain 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 “-”) 11,240,332.77 14,652,151.91
Investment loss (gain is listed with “-”) 1,862,331.47 -6,025,223.39
Decrease of deferred income tax assets (increase is listed
with“-”)
- 77 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 As of 30 June 2012
Increase of deferred income tax liabilities (decrease is listed
with “-”)
Decrease of inventories (increase is listed with “-”) -4,517,187.53 -21,636,091.82
Decrease of operational accounts receivable (increase is listed
-114,949,312.27 -55,466,493.18
with “-”)
Increase of operational accounts payable (decrease is listed
25,448,393.51 25,843,528.28
with “-”)
Others
Net cash flow arising from operation activities -91,146,064.06 -40,503,486.12
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 158,755,370.14 203,938,223.14
Less: Balance of cash at period-begin 267,226,515.29 193,897,034.53
Add: Balance of cash equivalent at period-end
Less: Balance of cash equivalent at period-beginning
Net increase in cash and cash equivalent -108,471,145.15 10,041,188.61
XIV. Supplementary Information
1. Non-recurring gains and losses of current year (Profit: +, loss: -)
Calculation of non-recurring gains and losses below, in accordance with No. 1, Information Disclosure Interpretative
Bulletin for public offering of securities of enterprises ,namely non-recurring gains and losses(version of
2008),[ China Securities Regulatory Commission Announcement [2008] No. 43] issued by China securities
regulatory commission.
Item As of 30 June 2013 Note
1．Gains and losses from disposal of non-current assets, including reversal of
36,352.80
provision for impairment before
2．Tax refund and relief without authorized approval or formal approval document
or accident
3．Government subsidy recorded in current gains and losses,(except the fixed or
quantitative government subsidy closely related to the enterprise businesses and 1,793,770.76
according to the national uniform standard)
4．Capital occupancy expense, collected from non-financial enterprises and
- 78 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 Note
recorded in current gains and losses
5．Income from the exceeding part between investment cost of the Company
paid for obtaining subsidiaries, associates and joint-ventures and recognizable net
assets fair value attributable to the Company when acquiring the investment
6．Gains and losses from exchange of non-monetary assets
7．Gains and losses from assets under trusted investment or management
8．Various provision for impairment of assets due to act of God, such as natural
disaster
9．Gains and losses from debt restructuring -30,865.75
10．Enterprise reorganization expense, such as expense for placement of workers
or expense for integration charges etc.
11．Gains and losses of the part arising from transaction in which price is unfair and
exceeding fair value
12．Current net gains and losses occurred from period-begin to combination
day by subsidiaries resulting from business combination under common control
13．Gains and losses arising from contingent proceedings irrelevant to normal
operation of the Company
14．Except for effective hedge business relevant to normal operation of the
Company, gains and losses arising from fair value change of tradable financial
assets and tradable financial liabilities, and investment income from disposal of
tradable financial assets, tradable financial liabilities and financial assets available
for sale
15．Reversal of provision of impairment of account receivable which are
treated with separate depreciation test
16．Gains and losses obtained from external trusted loans
17．Gains and losses arising from change of fair value of investment real estate
whose follow-up measurement are conducted according to fair value pattern
18．Affect on current gains and losses after an one-time adjustment according
to requirements of laws and regulations regarding to taxation and accounting
19．Trust fee obtained from trust operation
20．Other non-operating income and expenditure except for the aforementioned
-471,706.10
ones
21．Other gains and losses items complying with definition for non-recurring
gains and loses
22．Affect on minority equity(after taxation)
338,026.67
23．Affect on income tax 242,723.61
- 79 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 Note
Total 746,801.43
2. Return on equity and earnings per share
Earnings per share
Weighted average Diluted earnings per
Profits of the reporting period Basic earnings per
return on equity（%） share
share
Net profit attributable to shareholders of
-0.72 -0.013 -0.013
parent company
Net profit attributable to shareholders of
parent company -0.92 -0.016 -0.016
after deduction of non-current gains and losses
3. 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
Proportion
As of 30 June As of 31 Amount of
of Note
2013 December 2012 movement
Item movement
300,748,252.81 452,015,249.64 -151,266,996.83 -33.47%
Monetary funds Note1
60,000,000.00 107,000,000.00 -47,000,000.00 -43.93%
Notes payable Note2
(2) Item of Income Statement
Proportion
As of 30 June As of 31 Amount of
of Note
2013 December 2012 movement
Item movement
Investment income -1,883,203.49 1,462,045.66 -3,345,249.15 -228.81% Note2
Non-operating income 1,927,667.56 1,206,456.92 721,210.64 59.78% Note3
Note1：During the period was mainly due to reduced loan financing bills , correspondence margin decrease and
increase of payment;
Note2: Decrease the intensity of bill financing;
Note3：Nanjing Prachanda Live Optical Network Co., Ltd loss impact in the period;
Note4: More government grant income received in the period.
- 80 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
1、Consolidated Balance Sheet
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. 30 June 2013 Monetary Unit:
RMB Yuan
Items 30 June 2013 31 December 2012
Current assets
Monetary funds 300,748,252.81 452,015,249.64
Settlement provisions
Capital lent
Held for trading financial assets
Notes receivable 12,808,703.63 18,194,220.77
Accounts receivable 883,795,031.05 716,775,318.61
Advances to suppliers 40,317,225.28 38,396,759.04
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 41,711,498.02 51,838,634.52
Purchase restituted finance asset
Inventories 463,072,334.66 463,851,045.50
Long-term debt investment due within a year
Other current assets
Total current assets 1,742,453,045.45 1,741,071,228.08
Non-current assets
Granted loans and advances
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 211,770,912.73 208,738,265.38
Investment property 4,504,532.07 4,607,748.03
Fixed assets 110,895,022.02 113,722,780.45
Construction in progress 8,592,062.87 2,580,345.07
Construction materials
Fixed assets held for disposal
Productive biological assets
Petrol assets
Intangible assets 19,111,365.27 19,454,384.86
Development costs
Goodwill
Long-term prepayments
Deferred tax assets
Other non-current assets
Total non-current assets 354,873,894.96 349,103,523.79
- 81 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
TOTAL ASSETS 2,097,326,940.41 2,090,174,751.87
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
- 82 -
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
1、Consolidated Balance Sheet（continued）
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO. LTD. 30 June 2013 Monetary Unit:
RMB Yuan
Items 30 June 2013 31 December 2012
Current liabilities Items 507,300,000.00 493,100,000.00
Short-term loans
Loan from central bank
Absorbing deposit and interbank deposit
Tradable financial liabilities
Notes payable 60,000,000.00 107,000,000.00
Accounts payable 940,257,551.79 850,781,298.82
Advances from customers 67,747,666.52 100,440,303.64
Selling financial asset of repurchase
Commission charge and commission payable
Accrued payroll 15,767,838.20 14,751,177.51
Taxes payable -4,919,741.64 10,368,942.32
Interest payable
Dividend payable 2,181,334.40
Other payables 46,818,256.57 46,008,707.65
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 1,632,971,571.44 1,624,631,764.34
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 1,633,051,689.44 1,624,711,882.34
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
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Provision of general risk
Undistributed profit -22,107,005.75 -19,387,788.41
Balance difference of foreign currency translation -3,477,747.36 -3,770,851.82
Total shareholder’s equity attributable to parent Company
375,379,340.51 377,805,453.39
Minority interests 88,895,910.46 87,657,416.14
Total shareholder’s equity 464,275,250.97 465,462,869.53
Total liabilities and shareholder’s equity 2,097,326,940.41 2,090,174,751.87
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2、Balance Sheet
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. 30 June 2013 Monetary Unit:
RMB Yuan
Items 30 June 2013 31 December 2012
Current assets
Monetary funds 178,755,370.14 288,600,512.42
Tradable financial assets
Notes receivable 5,379,186.50 13,092,690.25
Accounts receivable 577,542,391.31 448,222,395.54
Advances to suppliers 21,892,944.05 26,394,805.44
Interest receivable
Dividend receivable
Other receivables 58,638,204.25 56,482,885.89
Inventories 238,041,739.78 233,524,552.25
Long-term debt investment due within a year
Other current assets
Total current assets 1,080,249,836.03 1,066,317,841.79
Non-current assets
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 377,612,878.30 374,475,209.77
Investment property
Fixed assets 30,191,223.04 31,668,944.30
Construction in progress 8,592,062.87 2,580,345.07
Construction materials
Fixed assets held for disposal
Productive biological assets
Petrol assets
Intangible assets 4,133,689.46 4,521,694.93
Development costs
Goodwill
Long-term prepayments
Deferred tax assets
Other non-current assets
Total non-current assets 420,529,853.67 413,246,194.07
TOTAL ASSETS 1,500,779,689.70 1,479,564,035.86
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2、Balance Sheet（continued）
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. 30 June 2013 Monetary Unit:
RMB Yuan
Current liabilities
30 June 2013 31 December 2012
Items
Short-term loans 396,000,000.00 391,800,000.00
Tradable financial liabilities
Notes payable 60,000,000.00 147,000,000.00
Accounts payable 577,562,775.18 485,366,568.58
Advances from customers 25,260,969.82 37,300,025.81
Accrued payroll 5,874,232.08 5,320,641.08
Taxes payable 3,771,667.33 5,119,329.52
Interest payable
Dividend payable
Other payables 153,419,960.59 115,657,829.49
Long-term liabilities due within a year
Other current liabilities
Total current liabilities 1,221,889,605.00 1,187,564,394.48
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 1,221,969,723.00 1,187,644,512.48
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
Reasonable reserve
Surplus reserve 589,559.76 589,559.76
Provision of general risk
Undistributed profit -109,196,892.87 -96,087,336.19
Foreign currency translation differences
Total shareholder’s equity 278,809,966.70 291,919,523.38
Total liabilities and shareholder’s equity 1,500,779,689.70 1,479,564,035.86
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
3、Consolidated Income Statement
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit:
RMB Yuan
Items Jan. to Jun. 2013 Jan. to Jun. 2012
I. Total operating income Items 1,207,557,538.82 1,349,963,182.82
Including: Operating income 1,207,557,538.82 1,349,963,182.82
Interest income
Insurance gained
Commission charge and commission income
II.Total operating cost 1,204,885,342.50 1,337,881,996.51
Including: Operating cost 1,043,008,171.55 1,167,040,803.45
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Sales tax and surcharge 4,694,575.67 4,285,765.91
Sales expenses 82,273,548.91 85,918,634.36
Administration expenses 62,829,331.87 61,694,140.49
Financial expenses 11,488,031.64 16,942,792.36
Losses of devaluation of asset 591,682.86 1,999,859.94
Add: Changing income of fair value(Loss is listed
with“-”)
Investment income (Loss is listed with “-”) -1,883,203.49 1,462,045.66
Including: Investment income on affiliated
Company and joint venture -1,862,331.47 1,462,045.66
and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) 788,992.83 13,543,231.97
Add: Non-operating income 1,927,667.56 1,206,456.92
Less: Non-operating expense 600,115.85 383,261.27
Including: Disposal loss of non-current asset 42,279.87
IV. Total Profit (Loss is listed with “-”) 2,116,544.54 14,366,427.62
Less: Income tax 3,597,267.56 2,022,892.44
V. Net profit (Net loss is listed with “-”) -1,480,723.02 12,343,535.18
Including: the merging parties to achieve a net
profit before the merger
Net profit attributable to owner’s equity of parent
-2,719,217.34 6,038,203.37
Company
Minority shareholders’ gains and losses 1,238,494.32 6,305,331.81
VI. Earnings per share -- --
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
i. Basic earnings per share -0.013 0.028
ii. Diluted earnings per share -0.013 0.028
VII. Other comprehensive income 293,104.46 -93,168.18
VIII.Total comprehensive income -1,187,618.56 12,250,367.00
Total comprehensive income attributable to owners of
-2,426,112.88 5,945,035.19
the parent company the parent company
Total comprehensive income attributable to
1,238,494.32 6,305,331.81
minority interests
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
4、Income Statement
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit:
RMB Yuan
Items Jan. to Jun. 2013 Jan. to Jun. 2012
I. Sales Income 725,615,062.25 894,036,249.73
Less: Business costs 655,279,644.09 818,400,146.13
Sales tax and surcharges 2,658,463.54 1,452,402.91
Sales expenses 43,577,265.99 45,496,592.28
Administration expenses 25,456,357.31 24,016,497.89
Financial expenses 9,674,355.31 14,174,636.35
Losses of devaluation of asset 34,764.05 1,008,607.19
Add: Changing income of fair value(Loss is listed
with “-”)
Investment income (Loss is listed with “-”) -1,862,331.47 6,025,223.39
Including: Investment income on affiliated
-1,862,331.47 1,448,523.39
Company and joint venture
II. Operating profit (Loss is listed with “-”) -12,928,119.51 -4,487,409.63
Add: Non-operating income 78,240.00 172,583.98
Less: Non-operating expense 259,677.17 290,929.87
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) -13,109,556.68 -4,605,755.52
Less: Income tax
IV. Net profit (Net loss is listed with “-”) -13,109,556.68 -4,605,755.52
V. Earnings per share -- --
i. Basic earnings per share -0.061 -0.021
ii. Diluted earnings per share -0.061 -0.021
VI.Other comprehensive income
VII. Total comprehensive income -13,109,556.68 -4,605,755.52
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
5、Consolidated Cash Flow Statement
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit:
RMB Yuan
Items Jan. to Jun. 2013 Jan. to Jun. 2012
I. Cash flows arising from operating activities:
Cash received from the sale of goods or rendering of services 1,218,515,488.00 1,409,020,267.18
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 858,508.30 779,939.18
Other cash receipts relating to operating activities 14,337,476.96 69,462,678.66
Sub-total of cash inflows arising from operating activities activities 1,233,711,473.26 1,479,262,885.02
Cash paid for goods and services 1,122,929,225.96 1,288,194,199.25
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 90,660,354.19 92,044,035.37
Payments of all types of taxes 60,343,173.64 53,868,053.64
Other cash payments relating to operating activities 95,034,007.42 73,366,161.31
Subtotal of cash outflow arising from operating activities 1,368,966,761.21 1,507,472,449.57
Net cash flows arising from operating activities -135,255,287.95 -28,209,564.55
II. Cash flows arising from investing activities
Cash received from recovering investment
Cash received from investment income
Net cash received from the sale of fixed assets, intangible assets and other long-term
36,352.80 2,006,618.45
assets 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 36,352.80 2,006,618.45
Cash paid for purchasing fixed, intangible and other long-term assets 9,436,683.10 8,629,668.88
Cash paid for investment 5,000,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 14,436,683.10 8,629,668.88
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Net cash flows arising from investing activities -14,400,330.30 -6,623,050.43
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 176,000,000.00 100,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities 80,000,000.00
Subtotal of cash inflow from financing activities 176,000,000.00 180,000,000.00
Cash paid for settling debts 161,800,000.00 130,200,000.00
Cash paid for dividend and profit distributing or interest paying 13,618,333.70 23,801,804.46
Including: Dividend and profit of minority shareholder paid by subsidiaries
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 175,418,333.70 154,001,804.46
Net cash flows arising from financing activities 581,666.30 25,998,195.54
IV. Influence on cash due to fluctuation in exchange rate 128,675.35 13,427.08
V. Net increase of cash and cash equivalents -148,945,276.60 -8,820,992.36
Add: Balance of cash and cash equivalents at the period -begin 429,693,529.41 310,453,749.89
VI. Balance of cash and cash equivalents at the period -end 280,748,252.81 301,632,757.53
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
6、Cash Flow Statement
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit:
RMB Yuan
Items Jan. to Jun. 2013 Jan. to Jun. 2012
I. Cash flows arising from operating activities:
Cash received from the sale of goods or rendering of services 715,324,074.82 878,806,774.63
Refunds of taxes
Other cash receipts relating to operating activities 37,379,114.46 55,487,231.32
Sub-total of cash inflows arising from operating activities 752,703,189.28 934,294,005.95
Cash paid for goods and services 717,541,302.03 854,648,154.34
Cash paid to and on behalf of employees 47,384,233.37 44,259,446.77
Payments of all types of taxes 27,750,342.93 18,139,026.55
Other cash payments relating to operating activities 51,173,375.01 57,750,864.41
Subtotal of cash outflow arising from operating activities 843,849,253.34 974,797,492.07
Net cash flows arising from operating activities -91,146,064.06 -40,503,486.12
II. Cash flows arising from investing activities
Cash received from recovering investment
Cash received from investment income 4,576,700.00
Net cash received from the sale of fixed assets, intangible
assets and other long-term assets long-term assets 371,150.00
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
Cash paid for purchasing fixed, intangible and other long-term
assets 5,377,085.19 3,332,652.26
Cash paid for investment 5,000,000.00
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 10,377,085.19 3,332,652.26
Net cash flows arising from investing activities -10,377,085.19 1,615,197.74
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 136,000,000.00 64,000,000.00
Cash received from bonds issued
Other cash received concerning financing activities 80,000,000.00
Subtotal of cash inflow from financing activities 136,000,000.00 144,000,000.00
Cash paid for settling debts 131,800,000.00 80,000,000.00
Cash paid for dividend and profit distributing or interest paying 11,240,332.77 14,861,337.46
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 143,040,332.77 94,861,337.46
Net cash flows arising from financing activities -7,040,332.77 49,138,662.54
IV. Influence on cash due to fluctuation in exchange rate 92,336.87 -209,185.55
V. Net increase of cash and cash equivalents -108,471,145.15 10,041,188.61
Add: Balance of cash and cash equivalents at the period -begin 267,226,515.29 193,897,034.53
VI. Balance of cash and cash equivalents at the period -end 158,755,370.14 203,938,223.14
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
7、Consolidated Statement of Changes in Owners’ Equity
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit: RMB Yuan
Amount for period from Jan. to June 2013
Shareholders’ equity attributable to the parent Company
Items Total
General Minority
Capital Less:Treasury Reasonable Surplus Undistributed shareholders’
Share capital risk Others interests
reserves Stock reserve reserves profit equity
provision
I. Balance at the end of the last year 215,000,000.00 185,374,533.85 589,559.77 -19,387,788.41 -3,770,851.82 87,657,416.14 465,462,869.53
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this year 215,000,000.00 185,374,533.85 589,559.77 -19,387,788.41 -3,770,851.82 87,657,416.14 465,462,869.53
III. Increase/ Decrease in this year (Decrease is listed with “-”) -2,719,217.34 293,104.46 1,238,494.32 -1,187,618.56
(I) Net profit -2,719,217.34 1,238,494.32 -1,480,723.02
(II) Other comprehensive income 293,104.46 293,104.46
Subtotal of (I) and (II) -2,719,217.34 293,104.46 1,238,494.32 -1,187,618.56
(III) Shareholders’ contributions and
reduction in capital
1. Capital contribution from owners
2. Share-based payment recognised in shareholders' equity
3. Others
(IV) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk provisions
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
3. Distribution for shareholders
4. Others
(V)Transfer within shareholders' equity
1. Capitalisation of capital reserve
2. Capitalisation 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 year 215,000,000.00 185,374,533.85 589,559.77 -22,107,005.75 -3,477,747.36 88,895,910.46 464,275,250.97
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
7、Consolidated Statement of Changes in Owners’ Equity (continued)
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit: RMB
Yuan
Amount for last year
Shareholders’ equity attributable to the parent Company Shareholders’
Shareholders’
Items equity
equity attributable
Share Share Share attributable to
Share capital Share capital Share capital Share capital Share capital to the parent
capital capital capital the parent
Company
Company
I. Balance at the end of the last year 215,000,000.00 185,374,533.85 589,559.77 -24,923,018.93 -3,767,746.21 86,650,225.12 458,923,553.60
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this year 215,000,000.00 185,374,533.85 589,559.77 -24,923,018.93 -3,767,746.21 86,650,225.12 458,923,553.60
III. Increase/ Decrease in this year (Decrease
5,535,230.52 -3,105.61 1,007,191.02 6,539,315.93
is listed with “-”)
(I) Net profit 5,535,230.52 13,106,133.92 18,641,364.44
(II) Other comprehensive income -3,105.61 -3,105.61
Subtotal of (I) and (II) 5,535,230.52 -3,105.61 13,106,133.92 18,638,258.83
(III) Shareholders’ contributions and
reduction in capital
1. Capital contribution from owners
2. Share-based payment recognised in
shareholders' equity
3. Others
(IV) Profit distribution -12,098,942.90 -12,098,942.90
1. Withdrawal of surplus reserves
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2. Withdrawal of general risk provisions
3. Distribution for shareholders -12,098,942.90 -12,098,942.90
4. Others
(V)Transfer within shareholders' equity
1. Capitalisation of capital reserve
2. Capitalisation 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 year 215,000,000.00 185,374,533.85 589,559.77 -19,387,788.41 -3,770,851.82 87,657,416.14 465,462,869.53
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
8、Statement of Changes in Owners’ Equity
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit: RMB
Yuan
Amount for period from Jan. to Jun. 2013
Items General
Less:Treasury Reasonable Undistributed Total
Share capital Capital reserves Surplus reserves risk
Stock reserve profit shareholders’equity
provision
I. Balance at the end of the last year 215,000,000.00 172,417,299.81 589,559.76 -96,087,336.19 291,919,523.38
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this year 215,000,000.00 172,417,299.81 589,559.76 -96,087,336.19 291,919,523.38
III. Increase/ Decrease in this year (Decrease is
-13,109,556.68 -13,109,556.68
listed with “-”)
(I) Net profit -13,109,556.68 -13,109,556.68
(II) Other comprehensive income
Subtotal of (I) and (II) -13,109,556.68 -13,109,556.68
(III) Shareholders’ contributions and reduction
in capital
1. Capital contribution from owners
2. Share-based payment recognised in
shareholders' equity
3. Others
(IV) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk provisions
3. Distribution for shareholders
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
4. Others
(V)Transfer within shareholders' equity
1. Capitalisation of capital reserve
2. Capitalisation 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 year 215,000,000.00 172,417,299.81 589,559.76 -109,196,892.87 278,809,966.70
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
8、Statement of Changes in Owners’ Equity（continued）
Prepared by：NANJING PUTIAN TELECOMMUNICATIONS CO., LTD. Jan. to Jun. 2013 Monetary Unit: RMB
Yuan
Amount for last year
Items General
Less:Treasury Reasonable Undistributed Total
Share capital Capital reserves Surplus reserves risk
Stock reserve profit shareholders’equity
provision
I. Balance at the end of the last year 215,000,000.00 172,417,299.81 589,559.76 -83,353,497.28 304,653,362.29
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this year 215,000,000.00 172,417,299.81 589,559.76 -83,353,497.28 304,653,362.29
III. Increase/ Decrease in this year (Decrease is
-12,733,838.91 -12,733,838.91
listed with “-”)
(I) Net profit -12,733,838.91 -12,733,838.91
(II) Other comprehensive income 0.00
Subtotal of (I) and (II) -12,733,838.91 -12,733,838.91
(III) Shareholders’ contributions and reduction
in capital
1. Capital contribution from owners
2. Share-based payment recognised in
shareholders' equity
3. Others
(IV) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk provisions
3. Distribution for shareholders
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
4. Others
(V)Transfer within shareholders' equity
1. Capitalisation of capital reserve
2. Capitalisation 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 year 215,000,000.00 172,417,299.81 589,559.76 0.00 -96,087,336.19 291,919,523.38
Legal Representative: Xu Qian Person in Charge of Accounting Works: Wang Hong Person in Charge of Accounting Department: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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 2013, 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, research and manufacture vehicle electronics, sale of video conference system, and
providing the related after-sales service ,including installation and maintenance and repairmen of
equipments .Design of telecom information net project and computer information systematic project, and 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
“‘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 2013, operational achievements and cash flow of the company
for 1 January 2013 to 30 June 2013 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”).
5. Accounting treatment of Business Combination
Business combination includes combination of entities or businesses under common control and combination
under different control.
(1) Combination under common control
An acquirer of a business combination under common control recognizes the assets acquired and liabilities
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assumed at their acquisition-date carrying values. 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,
combination 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. Combination cost includes consideration transferred and transaction costs that are directly attributable to
the acquisition. The acquirer shall recognize the fair value of contingent consideration at acquisition date as part of
the consideration transferred in exchange for the acquiree.
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 combination 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 combination cost, before recognizing a gain on a bargain purchase, the company will reassess whether it
has correctly measured all of the identifiable assets acquired, all of the liabilities and contingent liabilities assumed
and combination cost. The difference is recorded to profit or loss in the current period if the fair value of the net
identifiable assets acquired exceeds combination cost after the review.
6. Basis of Preparation of 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
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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.
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.
8. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount
pursuant to the spot exchange rate as of the business day.
As at the balance sheet date, monetary items expressed by foreign currency are converted into RMB pursuant to
the spot exchange rate, for prompt exchange rate on the spot rate and the time of initial recognition or before the
date of the balance sheet at the spot exchange rate and produce different exchange balance, except a qualified
foreign currency exchange balance specifically borrowed in the capitalization period shall be included in the
relevant asset costs of capitalization of the, all included in the current profits and losses.
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.
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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, recognition and measurement 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.
The financial assets or financial liabilities initial recognition is measured at fair value. Follow-up measurement is
classification treatment: with 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
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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.
(2) 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.
(3) De-recognition of financial liabilities
Recognition of certain liability should be terminated when related current obligation has already been wholly or
partly discharged.
(4) 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.
(5) The impairment test and the impairment provision of the financial assets
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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.
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.
(6) Reclassification of financial asset
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
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Group recognition criteria Amount, risk size
Group1 Single amount major but not separate accrual provision
Group 2 Single amount not significant and portfolio risk is low
Group 3 Single amount not significant but risk is high in the group
Provision method for group
Group 1 Age analysis
Group 2 No provision
Group 3 Age analysis
Adopt age analysis provision in group as follows:
Accounts receivable provision Other receivables provision proportion
Aging
proportion (%) (%)
Within 1 year (contain 1 year) 0.00 0.00
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
5 to 6 years 80.00 80.00
6 years or above 100.00 100.00
(3) Single amount not significant but single provision for accounts receivable
Single provision reason Separately impairment test, exist objective evidence for impairment
Provision method 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
The inventory is measured using weighted average method when issued.
(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
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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; ②as 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.
(4) Inventory system
The stocktaking system is perpetual inventory system.
(5) Amortization method for low value consumable items and packing materials
The low value consumable items are amortized by step-amortization method and 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
①The 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.
②The long-term equity investment is acquired through cash payment, the actual payment for the purchase shall be
deemed as initial investment cost.
③The 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.
④The long-term equity investment made by the investors, the agreed price in investment contract or agreement
will be deemed as the initial investment cost.
⑤long-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
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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:
①Delegation of certain representative in the board of directors or similar situation of investee company.
②Participate the decision-making of investee company
③Delegation of certain management staff in the investee company.
④Reliance to technology or technological materials of investee company.
⑤others 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
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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:
①The economic benefits related with the fixed asset are probably to flow to the enterprise; and
②The cost of the fixed asset can be measured reliably
(2) 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
Transportation equipment 6-8 3 12.13-16.17
Electronic and other
4-11 3 2.2-24.25
equipment
(3) 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
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
(4) 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: ①The lease transfers ownership of the asset to the lessee by the end of the lease term; ②The
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; ③The lease term is for the major part of the economic life of the asset even if title is not
transferred; ④At 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; ⑤The 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.
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;
②Have 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;
③Expenditure in the future associated with fixed assets, little or no place;
④The 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,
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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 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) Calculation of borrowing expense capitalization
The capitalization period: from borrowing cost starts capitalization to stop capitalization. The capitalization of the
borrowing costs suspended during not included.
If abnormal interruption happens during purchase or production of assets satisfying capitalization principle and the
interruption lasts over 3 months, the capitalization for the borrowing expense shall pause until the purchase or
production restarts.
Amount of borrowing expense capitalization: ①Capitalization 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;
②For 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. ③amortization 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. 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
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
(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.
(3) Basis of determination of indefinite use life with 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.
On balance sheet date, the company is required to test intangible asset with an indefinite useful life for useful life
at the end of each year, mainly in top-down method.
(4) Impairment
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) Research and Development Cost
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
18. 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.
19. Repurchase conditions of the transferred asset
20. 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.
114
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
21. 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: ①the
significant risks and rewards of ownership of the goods have been transferred to the buyer by the company; ②the
company retains neither continuous managerial involvement to the degree usually associated with the ownership
nor effective control over the sold goods; ③the amount of revenue can be measured reliably; ④it is probable that
the economic benefits associated with the transaction will flow to the company; ⑤the 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.
(2) 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: ①if 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; ②if 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.
(3) 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.
22 .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: ①the 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; ②the grant used for compensating the related expenses or losses incurred to the
company shall be directly included in the current profit or loss.
23. Deferred tax asset or liability
115
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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 which the temporary difference can be utilized.
24. Lease
(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
116
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
25. Major accounting policy modification, alteration accounting estimates description
(1) The main changes in accounting policies and accounting estimates
The company report period without accounting policy change, no accounting estimates changes.
26. Correction of previous errors and effects
During the report period without previous accounting error corrected.
V．Taxations
1. Major taxes and tax rates
Type of tax Tax base Tax rate
VAT Income from sales of goods and materials 17%
Income from lease, installation ,procession, rendering of
Business tax service 3%-5%
Urban maintenance and
construction tax Turnover tax 7%
Education surcharge Turnover tax 3%
Local education surcharge Turnover tax 1%
Corporate income tax Taxable income 15%-25%
The income tax, tax preferential policies advancements have not changed compared to last year.
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.
117
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2. Tax incentives and approvals
There are no tax incentives and approvals for the report period.
.
3. Other instructions
Nil.
VI. Business combination and consolidated financial statements
1. Subsidiary
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.
(1) Subsidiaries that are setup or obtained by the investment
Balance of Shareholdin Voting
other g proportion Rights
The Year End’s Essentially (%) proportio
Registered
Name Registratio Business Business actual amount constitutin n (%)
Type capital( Unit:
n nature Scope of capital g net
RMB Yuan）
Investment Investment
in
Subsidiary
Nanjing Southern
Stated-controlle 34,205,147.8 telecommunication 94,196,084.8
Telecommunication Nanjing Trading 98.24 98.24
d
3
s 1
s Company Limited
Nanjing Bada Nanjing 11,301,400.0 1,464,612.94 60.00 60.00
Stated-controlle telecommunication
118
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
0
Telecommunication d Manufactur s
s Co., Ltd e
Nanjing Putian
Trading&
Information Stated-controlle 14,000,000.0 telecommunication
Nanjing 5,065,340.17 99.98 99.98
Manufactur
0
Technology d s
e
Company Ltd.
Nanjing Putian Trading&
Stated-controlle 12,000,000.0 telecommunication 37,003,875.2
Telege Intelligent Nanjing 45.77 45.77
Manufactur
d
0
s 1
Building Ltd. e
Putian
Telecommunication Stated-controlle HKD telecommunication
Hongkong Trading 1,910,520.00 90.00 90.00
2,000,000
s (Hong Kong) Co., d s
Ltd.
Beijing Picom
Stated-controlle telecommunication
Telecommunication Beijing Trading
USD 500,000 1,854,910.00 51.00 51.00
d s
s Equipment Ltd
Nanjing Putian
Trading&
Wongshi Stated-controlle 90,190,000.0 telecommunication 37,767,405.8
Nanjing 99.42 99.42
Manufactur
Telecommunication d
0
s 3
e
s Co., Ltd.
Nanjing Putian
Changle Trading&
Stated-controlle 10,000,000.0 telecommunication 16,003,881.4
Telecommunication Nanjing 50.70 50.70
Manufactur
d
0
s 1
s Equipment Co., e
Ltd.
Nanjing Putian Trading&
Stated-controlle 10,000,000.0 telecommunication 21,103,694.3
Network Company Nanjing 78.00 78.00
Manufactur
d
0
s 9
Ltd. e
Nanjing Putian
Trading&
Telecommunication Stated-controlle telecommunication
Nanjing
5,000,000.00 659,342.19 70.00 70.00
Manufactur
Technology Co., d s
e
Ltd
Product industrial
Product and plugs, sockets,
Nanjing Mennekes sale cable coupler,
USD
Limited
5,065,340.17 75.00 75.00
Electric Appliances Nanjing industrial 5,200,000 low-voltage
company
Co., Ltd plugs, distribution box,
sockets cabinet
accessories, and
119
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
parts; sale of
self-produced
products. And the
main products are
plugs and sockets
for industry
Total 37,003,875.21
(Continued)
Amount in minority interest The balance after the parent company’ s owner’s equity writing down
statements combined or used for writing down the excess of the current loss undertaken by minority shareholders of
Name Minority interest
not minority gain and loss the subsidiary over the share enjoyed by minority shareholders in the
original owner’s equity of the subsidiary
Nanjing Southern
Telecommunications Yes 1,687,552.00
Company Limited
Nanjing Bada
Telecommunications Yes 976,408.62
Co., Ltd
Nanjing Putian
Information
Yes 1,013.28
Technology Company
Ltd.
Nanjing Putian Telege
Intelligent Building Yes 43,848,868.53
Ltd.
Putian
Telecommunications
Yes 0.00
(Hong Kong) Co.,
Ltd.
Beijing Picom
Telecommunications No
Equipment Ltd
Nanjing Putian
Wongshi
Yes 220,328.87
Telecommunications
Co., Ltd.
Nanjing Putian
Yes 15,561,959.64
Changle
Telecommunications
120
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Equipment Co., Ltd.
Nanjing Putian
Network Company Yes 5,952,324.06
Ltd.
Nanjing Putian
Telecommunication Yes 282,575.21
Technology Co., Ltd
Nanjing Mennekes
Electric Appliances Yes 20,364,880.24
Co., Ltd
Total 88,895,910.46
(2) Subsidiaries obtained by combination under common control
None
(3) Subsidiaries obtained by combination under different control
None
2. The instructions of consolidation scope change
The scope of consolidation was not changed.
3. During the reporting period newly incorporated into the scope of consolidation and no
longer included in the scope of consolidation
None
4. Business combination occurred under the same control during the reporting period
None
5. Business combination occurred under the different control during the reporting period
None
6. The sales equity of loss of control over the subsidiary during the reporting period
None
7. The reverse purchase occurred during the reporting period
None
121
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
8. The merger by absorption during the reporting period
None
9. 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 2013, 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 2013 and as of 31
December 2012, announced by Foreign Exchange Bureau in China.
VII. Notes to the major items in the consolidated financial statements
1. Monetary funds
（1）Classification of Monetary funds
As of 30 June 2013 As of 31 December 2012
Exchange RMB Exchange RMB
Item Original currency rate converted Original currency rate converted
Cash on hand 73,773.29 1.0000 73,773.29 15,216.21 1.0000 15,216.21
RMB 73,773.29 1.0000 73,773.29 15,216.21 1.0000 15,216.21
Cash in bank —— —— 297,082,137.56 —— —— 369,524,077.19
RMB 286,196,153.78 1.0000 286,196,153.78 346,406,532.23 1.0000 346,406,532.23
USD 396,367.28 6.1787 2,449,034.51 3,126,742.87 6.2855 19,653,142.31
HKD 9,678,889.78 0.7966 7,710,203.60 980,548.79 0.81085 795,077.99
EUR 90,238.61 8.0536 726,745.67 320,669.80 8.3176 2,667,203.13
GBP —— —— —— 208.7900 10.1611 2,121.53
Other monetary
3,592,341.96 1.0000 3,592,341.96 —— —— 82,475,956.24
funds
RMB 3,592,341.96 1.0000 3,592,341.96 82,187,393.52 1.0000 82,187,393.52
USD —— —— —— 45,909.27 6.2855 288,562.72
EUR —— —— —— —— —— ——
Total 300,748,252.81 —— —— 452,015,249.64
(2) Other monetary funds
Item As of 30 June 2013 As of 31 December 2012
Security deposit for bank acceptance bills 53,592,341.96 82,475,956.24
122
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 As of 31 December 2012
Total 53,592,341.96 82,475,956.24
2. Notes receivables
(1).Receivable by category list below
Item As of 30 June 2013 As of 31 December 2012
Commercial acceptance bills 11,003,945.54 8,604,577.52
Bank acceptance bills 1,804,758.09 9,589,643.25
Total 12,808,703.63 18,194,220.77
(2).Endorsed but not yet expired top five largest amount receivable listed below
Remitter Date of issue Date of expiry Amount Memo
China Telecom Co., Ltd.
2013-6-27 2013-12-17 3,100,789.53
Hubei Branch
China Railway
Electrification Bureau Group 2013-4-11 2013-10-11 2,037,237.28
Co., Ltd.
China Telecom Co., Ltd.
2013-6-20 2013-12-20 1,960,830.00
Fujian Branch
China Jiangsu International
Economic and Technical 2013-7-17 2013-10-10 1,364,440.00
Cooperation Group, LTD
Zhenfa New Energy
2013-1-31 2013-7-31 1,000,000.00
Technology Co., Ltd.
Total —— —— 9,463,296.81 ——
(3).Other matters need to explain：
None
3. Accounts receivable
(1)Classification of accounts receivable
As of 30 June 2013
Classification
Book balance Provision
123
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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 276,987,041.48 30.70
Group 2 579,388,476.11 64.22
Group 3 37,615,798.74 4.17 10,196,285.29 27.11
3. Single amount not significant but
8,166,647.18 0.91 8,166,647.18 100.00
single provision for accounts receivable
Total 902,157,963.51 100.00 18,362,932.47 2.04
As of 31 December 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 account receivable
Group1 169,582,824.65 23.10
Group 2 324,160,593.62 44.15
Group 3 232,184,991.36 31.62 9,153,091.02 4.56
3. Single amount not significant but
single provision for accounts receivable 8,305,969.16 1.13 8,305,969.16 100.00
Total 734,234,378.79 100.00 17,459,060.18 2.38
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.
Adopt age analysis provision in group as follows:
Age As of 30 June 2013 As of 31 December 2012
124
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Proportion Proportion
Book balance (%) Provision Book balance (%) Provision
Within 1 year
(contain 1 217,221,550.75 69.04% 336,349,476.20 83.72%
year)
1 to 2 years 55,652,396.53 17.69% 38,784,046.64 9.65%
2 to 3 years 25,622,802.70 8.14% 1,228,110.29 12,514,635.85 3.11% 1,251,463.59
3 years above 16,106,090.24 5.13% 8,968,175.00 14,119,657.32 3.52% 7,901,627.43
3to 4 years 5,563,957.68 1.77% 1,669,187.31 5,285,129.36 1.32% 1,585,538.81
4 to 5 years 4,183,335.94 1.33% 1,673,334.38 4,049,601.47 1.01% 1,619,840.59
5 years above 6,358,796.62 2.03% 5,625,653.31 4,784,926.49 1.19% 4,696,248.03
Total 314,602,840.23 -- 10,196,285.29 401,767,816.01 -- 9,153,091.02
Closing single amount not significant but single provision for accounts receivable
Proportion
Receivables Book amount Bad debt Reason
(%)
Aging longer
1,505,586.80 1,505,586.80 100.00 cannot be
NEPAL TETE recalled
Aging longer
1,351,541.24 1,351,541.24 100.00 cannot be
Jiangsu Changzhou Dahua Co. recalled
Aging longer
815,581.22 815,581.22 100.00 cannot be
Hubei Provincial Public Security recalled
Aging longer
601,365.45 601,365.45 100.00 cannot be
XI'AN Overload Science recalled
Aging longer
Taiyuan High-tech Industry Import and Export 247,825.07 247,825.07 100.00 cannot be
Co recalled
Beijing Zhenyuan Innovation Science and 150,769.24 150,769.24 100.00 Aging longer
125
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Technology Development Co cannot be
recalled
Aging longer
116,370.36 116,370.36 100.00 cannot be
Zhongshan Group International Trader Center recalled
Aging longer
1,748,580.14 1,748,580.14 100.00 cannot be
M/S Whlstler Telecom(pvt) LTD recalled
Aging longer
101,555.69 101,555.69 100.00 cannot be
PRADUFA recalled
Aging longer
12,500.00 12,500.00 100.00 cannot be
China Unicom Nanjing Branch recalled
Beijing Tongchengdaye Communication
486,001.22 486,001.22 100.00 Lawsuit
Technology Co., Ltd.
Shandong University of Traditional Chinese
264,868.40 264,868.40 100.00 Lawsuit
Medicine
Jiangsu Taihewei Nets Technology Co., Ltd. 419,504.72 419,504.72 100.00 Lawsuit
Heilongjiang Blue Ocean Silver Ann technology
155,111.86 155,111.86 100.00 Lawsuit
Development Co., LTD
Suzhou Tyrone Real Estate Development Co. 159,322.80 159,322.80 100.00 Lawsuit
Changchun Jiachen Network Technology Co.,
30,162.97 30,162.97 100.00 Lawsuit
LTD
Total 8,166,647.18 8,166,647.18 —— ——
(2) Current payback or return of receivables
Accumulative
amount of
Basis of provision for bad
Reason for Back or debts preparation Amount for Back
Receivables provision for bad
Withdraw before Withdraw or or Withdraw
debt
back
Beijing Tongchengdaye
Communication Recover lawsuit 511,401.22 25,400.00
Technology Co.,Ltd
Total —— —— 511,401.22 25,400.00
(3) The income in the actual cancel after verification of receivables
None
126
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
(4) Accounts receivable due from shareholder who has more than 5% (including 5 %) voting shares of the
Company at year-end
Amount of RMB 45,254,394.79 Yuan is due from China Potevio Co. Ltd., Parent company, aging within 3 year,
which include RMB 29,363.72 Yuan aging 2 to 3 year withdrawing bad debts RMB 2,936.37 Yuan at 30 June
2013.
Amount of RMB 20,459,786.64 Yuan is due from China Potevio Co. Ltd., Parent company, aging within 2 year,
has no provision for bad debts at 31 December 2012.
(5)Top 5 debtors of accounts receivable
Proportion of
Relationship with
Name of the debtors Amount Aging total amount
the Company
(%)
Within
82,978,417.53 9.20
1 year
China Telecom Co., Ltd. Jiangsu Branch non-related party
2 to 3
2,378.00 0.00
year
Within
37,947,739.98 4.21
1 year
1 to 2
China Putian Information Industry Co.,Ltd parent company 7,277,291.09 0.81
year
2 to 3
29,363.72
year
Within
18,353,708.29 2.03
1 year
Agricultural Bank of China non-related party
1 to 2
15,149,360.70 1.68
year
Nanjing Hehao Communication Within
non-related party 26,588,864.00 2.95
Technology Co., Ltd. 1 year
Within
7,524,803.00 0.83
Beijing Xinliwenhao Science and 1 year
non-related party
Technology Development Co., Ltd. 1 to 2
12,277,926.48 1.36
year
Total —— 208,129,852.79 —— 23.07
(6) Accounts receivable of related parties accounts
Relationship with the Proportion of
Name of the debtors Amount
Company total amount (%)
China Putian Information Industry Parent company 45,254,394.79 5.02
127
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Relationship with the Proportion of
Name of the debtors Amount
Company total amount (%)
Co.,Ltd
Shanghai Putian Post and
Telecommunications Technology Co., Under the same parent 13,341,700.00 1.48
Ltd. company
Beijing Dragon Oriental International Under the same parent
7,396,003.60 0.82
Information Technology Co., Ltd. company
Nanjing Prachanda Live Optical Network
6,141.50
Co., Ltd Joint ventures
Total —— 65,998,239.89 7.32
(7) Balance of accounts receivable in foreign currencies
As of 30 June 2013 As of 31 December 2012
Foreign Exchange Original
Currency Original currency rate RMB currency Exchange rate RMB
USD 1,177,107.00 6.1787 7,275,109.81 1,309,842.89 6.2855 8,233,017.49
HKD
EUR
Total 1,177,107.00 6.1787 7,275,109.81 1,309,842.89 6.2855 8,233,017.49
4. Advances to suppliers
(1)Analysis of aging
As of 30 June 2013 As of 31 December 20121
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 19,221,811.90 47.67 26,736,008.86 69.63
1-2 years 9,768,106.92 24.23 3,319,945.69 8.65
2-3 years 3,123,257.17 7.75 6,313,716.09 16.44
over 3 years 8,204,049.29 20.35 2,027,088.40 5.28
Total 40,317,225.28 100.00 38,396,759.04 100.00
(2)Top five largest accounts paid in advance
Relationship Proportion of
Reasons for
Company with the Amount total amount Aging
un-settlement
Company (%)
128
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Relationship Proportion of
Reasons for
Company with the Amount total amount Aging
un-settlement
Company (%)
Nanjing Yuhua Economy non-related Over 3 In credit
6,020,000.00 14.93
Development Co., LTD party years period
Jiangsu Sainty International
non-related 1 to 2 In credit
Group Tech-development Co., 3,219,566.17 7.99
party year period
Ltd.
Nanjing Putian TianJi Cable Co., Within In credit
related party 2,791,017.69 6.92
LTD 1 year period
Jiangsu Huayu Intelligent non-related Within In credit
2,213,277.50 5.49
Systems Engineering Co., LTD party 2 year period
Nanjing Polymerization Digital non-related Within In credit
2,000,000.00 4.96
Technology Co., LTD. party 1 year period
Total 16,243,861.36 40.29 ——- ——
(3) Prepayment of shareholder who has more than 5% (including 5 %) voting shares of the Company at
year-end
None
5. Other receivables
(1)Classification of other receivables
As of 30 June 2013
Book balance Provision
Classification
Proportion Proportion
Amount Amount
(%) (%)
1. Single amount dramatic and individual
28,912,122.71 36.11 28,912,122.71 100
provision for the accounts receivable
2. Classification as the group of provision for
51,154,155.54 63.89 9,442,657.52 18.46
account receivable
Group1 16,000,000.00 19.98 4,800,000.00 30
Group 2 23,553,245.95 29.42
Group 3 11,600,909.59 14.49 4,642,657.52 40.02
3. Single amount not significant but single
-
provision for accounts receivable
Total 80,066,278.25 100.00 38,354,780.23 47.9
129
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 31 December 2012
Book balance Provision
Classification
Proportion Proportion
Amount Amount
(%) (%)
1. Single amount dramatic and individual provision
28,912,122.71 31.95 28,912,122.71 100.00
for the accounts receivable
2. Classification as the group of provision for
61,593,481.47 68.05 9,754,846.95 15.84
account receivable
Group1 18,000,000.00 19.88 5,400,000.00 15.21
Group 2 24,460,729.04 27.03 - -
Group 3 19,132,752.43 21.14 4,354,846.95 22.76
3. Single amount not significant but single provision
- - -
for accounts receivable
Total 90,505,604.18 100.00 38,666,969.66 42.72
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.
Adopt age analysis provision in group as follows:
As of 30 June 2013 As of 31 December 2012
Proportion Proportion
Age Book balance (%) Provision Book balance (%) Provision
Within 1 year
(contain 1 1,466,988.96 5.31% 8,164,134.87 21.99%
year)
1 to 2 years 633,527.45 2.3% 2,060,630.73 5.55%
2 to 3 years 2,300,668.51 8.34% 230,666.85 3,029,912.83 8.16% 302,991.21
3 years above 23,199,724.67 84.05% 9,211,990.67 23,878,074.00 64.3% 9,451,855.74
3 to 4years 18,120,381.96 65.65% 5,411,291.24 19,871,318.83 53.51% 5,960,945.65
4 to 5 years 1,634,199.54 5.92% 534,540.29 832,667.80 2.24% 333,067.40
130
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
5 years or
3,445,143.17 12.48% 3,266,159.14 3,174,087.37 8.55% 3,157,842.69
above
Total 27,600,909.59 -- 9,442,657.52 37,132,752.43 -- 9,754,846.95
(2) Recovery or reversal of current other receivables
None of recovery or reversal of current other receivables with full provision for bad debts or a larger percentage of
provision for bad debts before and recovery or reversal of them this year, as well a larger percentage of recovery or
reversal this year.
(3) Written -off of other receivables in the current period
This period without verification or take other receivables has cancel after verification.
(4) Other accounts due from shareholder who has more than 5% (including 5 %) voting shares of the
Company at year-end
None
(5)Contents or types of other receivables with larger amount
Type (or contents)
Name of debtors Amount
of other receivables
Beijing Picom Telecommunications Equipment
28,912,122.71 Receivables and payables
Ltd
The Yuhua People's Government Nanning
16,000,000.00 Receivables and payables
Office
Total 44,912,122.71 ——
(6) Top 5 debtors of other receivables
Proportion of
Relationship with the
Name of debtors Amount Aging total amount
Company
(%)
Beijing Picom Telecommunications More than
Subsidiary 28,912,122.71 36.11%
Equipment Ltd 6 yeas
The Yuhua People's Government 3 to 4
Non-related party 16,000,000.00 19.98%
Nanning Office years
Within 1
Shanghai Comtender Bidding Co., 392,500.00 0.49%
Non-related party year
Ltd.
686,463.00 1 to 2 year 0.86%
China Mobile Communications Within 1
Non-related party 979,500.00 1.22%
Group Jiangsu Co., LTD. Nanjing year
131
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Proportion of
Relationship with the
Name of debtors Amount Aging total amount
Company
(%)
branch More than
500.00 0%
6 yeas
80,000.00 1 to 2 year 0.1%
China United Network
Communications Ltd. Liaoning Non-related party 50,000.00 2 to 3 year 0.06%
Branch 500,000.00 0.62%
3 to 4 year
Total —— 47,601,085.71 —— 59.44%
(7)Other receivables from related parties
Relationship with the Proportion of
Name of debtors Amount
Company total amount (%)
Beijing Picom Telecommunications
Subsidiary 28,912,122.71 36.11%
Equipment Ltd
Nanjing Putian Technology Industrial Park
Related party 0.13%
Corporation 102,955.98
Putian Hongyan Company Related party 0.3%
242,600.69
Putian Industry Company Related party 0.81%
651,147.41
Total 29,908,826.79 37.35%
(8)Balance of other receivables in foreign currencies
As of 30 June 2013 As of 31 December 2012
Foreign
Exchange RMB Original RMB
currency Original currency Exchange rate
rate converted currency converted
USD 210.00 6.1787 1,297.53
Total —— —— 1,297.53 —— ——
6. Inventories
(1)Classification of inventories
Item As of 30 June 2013 As of 31 December 2012
132
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Provision
Provision for
Book balance for Book value Book balance Book value
devaluation
devaluation
Raw 37,277,472.0 1,640,390.2 35,637,081.7 34,266,404.4
2,616,797.25 31,649,607.22
materials 3 7 6 7
Goods-in- 158,009,096. 158,009,096. 60,398,291.2
60,398,291.29
process 89 89 9
Finished 276,299,571. 6,873,415.9 269,426,156. 379,021,719. 371,803,146.9
7,218,572.71
goods 94 3 01 70 9
471,586,140. 8,513,806.2 463,072,334. 473,686,415. 463,851,045.5
Total 9,835,369.96
86 0 66 46 0
(2) Provision for inventory devaluation
Amount Amount reduced this year
As of 31 As of 30 June
Item provided this
December 2012 Reversal Written off 2013
year
Raw materials 2,616,797.25 976,406.98 1,640,390.27
Goods-in-process
Finished goods 7,218,572.71 345,156.78 6,873,415.93
Total 9,835,369.96 1,321,563.76 8,513,806.20
7. Long-term equity investments of the joint ventures and associated ventures
(1)Information of the joint ventures
Voting
Share right
holding proportion
Total Total net
percentage of the Total assets at Total sales of Net profit of
Invested units liabilities 30 assets 30
of the company 30 June 2013 this period this period
June 2013 June 2013
company among
(%) invested
units (%)
Nanjing Prachanda Live
Optical Network Co., 50.00 50.00 79,584,786.06 45,282,156.78 34,302,629.28 24,754,280.00 -5,119,852.16
Ltd
(2)Information of the associated ventures
133
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Voting
Share right
holding proportion Total Total net
Total assets at Total sales
percentage of the liabilities 31 assets at 31 Net profit of
Invested units 31 December of
of the company December December This period
2012 this period
company among 2012 2012
(%) invested
units (%)
Nanjing Putian Datang
Information and Electric 40.00 40.00 21,344,532.00 13,014,545.79 8,329,986.21 14,668,405.87 1,192,864.20
Company Ltd
Nanjing Putian
Zhongyou
30.00 30.00 1,679,837.03 390,162.57 1,289,674.46 0.00 0.00
Telecommunication Co.,
Ltd.
Nanjing Putian High
Technology Industry 49.64 49.64 342,434,152.50 1,419,470.67 341,014,681.83 7,214,621.27 444,095.35
Co., Ltd.
8. Long-term equity investments
(1)List of Information of Long-term Equity Investment
Share holding
Book balance Book balance
percentage of
at 31 at 31
Invested units Accountin Initial cost of the Company
December Movement December
g Method investment among
2012 2012
invested units
(%)
Nanjing Putian
Datang
Equity
Information and 600,000.00 2,759,925.47 477,145.68 3,237,071.15 40.00
Method
Electric
Company Ltd
Nanjing Putian
Zhongyou Equity
300,000.00 216,145.33 216,145.33 30.00
Telecommunica Method
tion Co., Ltd.
Nanjing Putian
Equity 167,548,141.2 168,859,901.1 169,080,350.
High 220,448.93 49.64
Method 9 6 09
Technology
134
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Industry Co.,
Ltd.
Shanghai
Yulong Cost 14,721,843.5
23,310,000.00 14,721,843.51 17.79
Bio-tech Co., Method 1
Ltd.
Qufu Yulong
Cost
Bio-Tech Co., - 3,113,727.00 3,113,727.00 17.79
Method
Ltd.
Nanjing Equity
Prachanda Live Method
18,151,314.6
Optical 13,544,400.00 15,711,240.73 2,440,073.92 50.00
5
Network Co.,
Ltd
Beijing Picom
Cost
Telecommunica 1,854,910.00 1,854,910.00 1,854,910.00 51.00
Method
tions
Nanjing Yuhua
Cost
Galvanization 420,915.00 420,915.00 420,915.00 10.00
Method
Factory
Hangzhou
Putian
Cost
Swanking 321,038.00 321,038.00 321,038.00 2.26
Method
Electrical Co.,
Ltd
Nanjing Putian
Cost
Industry Co., 181,701.84 181,701.84 181,701.84 10.00
Method
Ltd
Nanjing Putian
Equity
Telege Cable 2,250,000.00 2,431,827.34 -105,021.18 2,326,806.16 45.00
Method
Co., Ltd.
210,331,106.1 210,593,175.3 213,625,822.
Total 3,032,647.35 ——
3 8 73
(Continued)
Voting right Depreciatio
Interpretations of difference
proportion n
between the equity Depreciatio Cash dividend
Invested units of the
percentage and vote right n reserves during the
Company
percentage in the invested reserve withdrawn period
among
unit during the
invested
135
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
units (%) period
Nanjing Putian
Datang Information
40.00
and Electric
Company Ltd
Nanjing Putian
Zhongyou
30.00
Telecommunication
Co., Ltd.
Nanjing Putian
High Technology 49.64
Industry Co., Ltd.
Shanghai Yulong
17.79
Bio-tech Co., Ltd.
Qufu Yulong
17.79
Bio-Tech Co., Ltd.
Nanjing Prachanda
Live Optical 50.00
Network Co., Ltd
Beijing Picom
1,854,910.0
Telecommunication 51.00
0
s
Nanjing Yuhua
Galvanization 10.00
Factory
Hangzhou
Swanking Electric 2.26
Appliance
Nanjing Putian
10.00
Industry Co. Ltd
Nanjing Putian
Telege Cable Co., 45.00
Ltd.
1,854,910.0
Total —— —— -
0
(2)Explanation of Long-term Equity Investment
There is no long-term equity investment with restriction for sale at the end of this period.
136
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
9. Investment property
Investment properties measured at costs
Decreas
As of 31 Increase e As of 30 June
Item
December 2012 during the year during the 2013
year
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
3,582,251.26 103,215.96 3,685,467.22
accumulated amortization
Houses and buildings 2,417,480.59 43,235.64 2,460,716.23
Land use rights 1,164,770.67 59,980.32 1,224,750.99
Total net book value 6,450,166.03 -103,215.96 6,346,950.07
Houses and buildings 3,972,788.83 -43,235.64 3,929,553.19
Land use rights 2,477,377.20 -59,980.32 2,417,396.88
Total accumulated provision for
1,842,418.00 1,842,418.00
impairment
Houses and buildings 1,842,418.00 1,842,418.00
Total carrying value 4,607,748.03 -103,215.96 4,504,532.07
Houses and buildings 2,130,370.83 -43,235.64 2,087,135.19
Land use rights 2,477,377.20 -59,980.32 2,417,396.88
10. Fixed assets
(1)Lists of fixed assets and accumulated depreciation, including movement
137
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 31 Increase during Decrease As of 30 June
Item
December 2012 the year during the year 2013
Total original cost of fixed
264,341,854.63 2,743,315.81 236,256.00 266,848,914.44
assets
Building/structure 121,519,255.50 1,002,377.76 —— 122,521,633.26
Machinery equipment 67,840,014.19 246,923.09 —— 68,086,937.28
Transportation equipment 17,277,316.36 557,730.62 228,800.00 17,606,246.98
Others 57,705,268.58 936,284.34 7,456.00 58,634,096.92
Total accumulated
148,259,421.52 5,540,346.27 205,528.03 153,594,239.76
depreciation
Building/structure 37,587,331.01 2,030,477.06 —— 39,617,808.07
Machinery equipment 51,518,554.42 1,542,217.01 —— 53,060,771.43
Transportation equipment 12,285,627.70 884,523.84 198,817.63 12,971,333.91
Others 46,867,908.39 1,083,128.36 6,710.40 47,944,326.35
Total impairment of fixed
2,359,652.66 —— —— 2,359,652.66
assets
Building/structure 539,124.00 —— —— 539,124.00
Machinery equipment 573,461.78 —— —— 573,461.78
Transportation equipment —— —— —— ——
Others 1,247,066.88 —— —— 1,247,066.88
Total carrying value of fixed
113,722,780.45 —— —— 110,895,022.02
assets
Building/structure 83,392,800.49 —— —— 82,364,701.19
Machinery equipment 15,747,997.99 —— —— 13,910,850.28
Transportation equipment 4,991,688.66 —— —— 4,634,913.07
Others 9,590,293.31 —— —— 9,984,557.48
Note: The depreciation amount is RMB 5,540,346.27 Yuan, in this period there was no construction in progress
turn to fixed assets.
(2)Fixed assets not in use temporarily
None
(3) Information of Fixed Assets without Certificate of Title
138
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Estimated Time to
Item Reasons for no secured property right certificate Complete
Certificate of Title
Building/structure No certification of land use right -------
11. Construction in progress
(1)Basic information of Construction in progress
As of 30 June 2013 As of 31 December 2012
Item Book Impairment Book Impairment Book
Book value
balance provision balance provision value
Nanjing Putian Telege
Cable Co., Ltd.
assembly workshop
building
Nanjing Putian Yuhua
7,977,772.29 —— 7,977,772.29 1,982,054.49 —— 1,982,054.49
Venture park
Fiber optic cable line 614,290.58 —— 614,290.58 598,290.58 —— 598,290.58
Total 8,592,062.87 —— 8,592,062.87 2,580,345.07 —— 2,580,345.07
(2) Significant movement of construction in progress
Proportion
N
Increase
As of 31 Transfer to Other of project
during the As of 30 June
Item Budget December fixed assets decrease Investment
year 2013
2012 in
budget
(%)
Nanjing Putian
Telege Cable Co.,
Ltd. assembly
workshop building
Nanjing Putian
1,982,054.49 5,995,717.80 7,977,772.29
Yuhua Venture park
Fiber optic cable
598,290.58 16,000.00 —— —— 614,290.58
line
Total 2,580,345.07 6,011,717.80 —— —— 8,592,062.87
(Continued)
139
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Accumulated amount Including interest Interest
Accumulated Capital
Item of interest capitalized amount capitalization
progress source
capitalization of the year rate of the year
Nanjing Putian
Telege Cable Co.,
Self-owned
Ltd. assembly
workshop building
Nanjing Putian
Self-owned
Yuhua Venture park
Wangshi workshop
Self-owned
transformation
Total
12. Intangible assets
As of 31 Increase Decrease As of 30 June
Item
December 2012 during the year during the year 2013
Total original cost 37,188,934.09 319,546.90 37,508,480.99
Land use right 20,821,664.95 20,821,664.95
Exclusive technology 6,117,894.02 6,117,894.02
Software 10,249,375.12 319,546.90 10,568,922.02
Total accumulated
17,734,549.23 1,807,199.99 1,144,633.50 18,397,115.72
amortization
Land use right 3,849,764.82 232,211.99 4,081,976.81
Exclusive technology 5,543,776.19 5,543,776.19
Software 8,341,008.22 1,574,988.00 1,144,633.50 8,771,362.72
Total net book value 19,454,384.86 19,111,365.27
Land use right 16,971,900.13 16,739,688.14
Exclusive technology 574,117.83 574,117.83
Software 1,908,366.90 1,797,559.30
Total accumulated provision
for impairment
Land use right
Exclusive technology
Software
Total carrying value 19,454,384.86 19,111,365.27
140
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 31 Increase Decrease As of 30 June
Item
December 2012 during the year during the year 2013
Land use right 16,971,900.13 16,739,688.14
Exclusive technology 574,117.83 574,117.83
Software 1,908,366.90 1,797,559.30
Note: The amortization amount of the intangible assets this year is RMB 1,807,199.99 Yuan.
13. Details of asset impairment
Amount Amount reduced this period
As of 31 As of 30 June
Item provided this
December 2012 Reversal Written off 2013
period
Bad debts reserve 56,126,029.84 1,455,359.07 863,676.21 56,717,712.70
Provision for
inventory 9,835,369.96 1,321,563.76 9,835,369.96
devaluation
Provision of
available-for-sale -
financial assets
Provision of
Held-to-maturity -
investments
Provision of
long-term equity 1,854,910.00 1,854,910.00
investments
Provision of
investment 1,842,418.00 1,842,418.00
property
Provision of fixed
2,359,652.66 2,359,652.66
assets
Provision of
construction -
materials
Provision of
construction in -
progress
Provision of
-
productive
141
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Amount Amount reduced this period
As of 31 As of 30 June
Item provided this
December 2012 Reversal Written off 2013
period
biological assets
Including:
provision of mature
-
productive
biological assets
Provision of petrol
-
assets
Provision of
-
intangible assets
Provision of
-
goodwill
Provision of others -
Total 72,018,380.46 1,455,359.07 863,676.21 1,321,563.76 71,288,499.56
14 .Lists of all assets with restriction of certificate of title or use right
As of 30 June Reasons for restriction of
Item
2013 certificate of title or use right
Used to guarantee the assets
Real estate 60,002,937.33 For loan security
Land 10,803,312.08 For loan security
Others causes ownership restrictions assets
Total 70,806,249.41
15. Short-term loans
Short-term borrowings classified by listed below
Kinds of loans As of 30 June 2013 As of 31 December 2012
Pledged loan
Loan in mortgage 83,300,000.00 73,300,000.00
Guaranteed loan 404,000,000.00 379,800,000.00
Loan in credit 20,000,000.00 40,000,000.00
Total 507,300,000.00 493,100,000.00
142
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Notes:
1、To obtain the two bank short-term loans of RMB15,000,000.00 Yuan and 17,000,000.00 Yuan, the
company will mortgage three real estates, confirmed the total value of RMB32,098,700.00 Yuan of real estate, the
loan period is from 17 June 2013 to 17 June 2014 and 15 May 2013 to 15 May 2014. The subsidiaries Nanjing
Putian Telege Cable Co., Ltd. mortgaged its two real estate for loan of RMB 40,000,000.00 Yuan and Nanjing
Mennekes Electric Appliances Co., Ltd. mortgaged its two real estate for loan of RMB 11,300,000.00 Yuan.
2、The final controller China Putian Corporation Group guaranteed the borrowing of RMB 230,000,000.00
Yuan. The parent company China Putian Company Ltd. guaranteed the borrowing of RMB 94,000,000.00 Yuan.
And Nanjing Southern Telecommunications Company Ltd. guaranteed the borrowing of RMB 20,000,000.00 Yuan.
The company guaranteed the borrowing of RMB 40,000,000.00 Yuan for Nanjing Southern Telecommunications
Company Ltd. and the borrowing of RMB 20,000,000.00 Yuan for Nanjing Putian Telege Cable Co., Ltd
3、Fiduciary loan：the company has acquired fiduciary loan RMB 20,000,000.00 Yuan from JiangsuBank.
16. Notes payable
Item As of 30 June 2013 As of 31 December 2012
Bank acceptance bills 60,000,000.00 107,000,000.00
Commercial acceptance bills
Total 60,000,000.00 107,000,000.00
Notes: Notes payable closing balance next accounting periods expire the amount of the RMB 60,000,000.00 Yuan.
17. Accounts payable
(1)Analysis of aging
Item As of 30 June 2013 As of 31 December 2012
Within 1 year 621,001,850.25 677,733,605.37
1-2 years 273,901,531.39 127,577,878.49
2-3 years 26,172,109.07 40,414,953.96
over 3 years 19,182,061.08 5,054,861.00
Total 940,257,551.79 850,781,298.82
(2) Accounts payable to shareholders holding 5% or above voting shares of the Company
At 30 June 2013, there is no accounts payable to shareholders holding 5% or above voting shares of the company.
(3)Significant accounts payable with ageing over one year as at year-end
None
(4)Balance of accounts payable in foreign currency
143
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 30 June 2013 As of 31 December 2012
Foreign
Exchange Original
Currency
Original currency rate RMB currency Exchange rate RMB
HKD 9,509,823.43 0.7966 7,575,525.34 18,527,627.18 0.8110 15,025,300.33
Total 9,509,823.43 0.7966 7,575,525.34 18,527,627.18 0.8110 15,025,300.33
18. Advances from customers
(1)Analysis of aging
Item As of 30 June 2013 As of 31 December 2012
Within 1 year 44,317,915.33 85,165,889.58
1-2 years 9,521,522.71 11,967,783.27
2-3 years 10,403,976.71 1,994,368.92
over 3 years 3,504,251.77 1,312,261.87
Total 67,747,666.52 100,440,303.64
(2) Accounts received in advance from shareholders holding 5% or above voting shares of the company, as
well as that of related parties.
This period closing advance from parent China Potevio Co., Ltd RMB 8,158,434.00 Yuan.
(3) Significant accounts payable with ageing over one year as at year-end
None
19. Accrued payroll
As of 31
Increase Decrease As of 30 June
Item December
during the period during the period 2013
2012
Wages, bonuses and allowance 4,509,440.30 55,571,635.76 55,571,635.76 4,509,440.30
Welfare expense - 6,654,187.11 6,435,689.21 218,497.90
Social insurance charges - 18,422,372.54 18,422,372.54 -
Including: Medical insurance - 5,813,788.07 5,813,788.07 -
Basic endowment insurance - 10,362,137.86 10,362,137.86 -
Unemployment insurance - 1,212,066.44 1,212,066.44 -
Work injury insurance - 219,710.76 219,710.76 -
Maternity insurance - 353,121.67 353,121.67 -
144
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 31
Increase Decrease As of 30 June
Item December
during the period during the period 2013
2012
Annuity - 461,547.74 461,547.74 -
Housing fund 6,180,516.00 4,515,536.51 4,515,536.51 6,180,516.00
Compensation for cancellation of
1,457,996.81 1,038,851.44 624,982.50 1,871,865.75
labor relationship
Others 2,603,224.40 1,270,292.80 885,998.95 2,987,518.25
Including: labor union
42,270.00 42,270.00 -
expenditure
Employee education expenses 26,000.00 26,000.00
Total 14,751,177.51 87,541,146.16 86,524,485.47 15,767,838.20
Notes: Unpaid wages do not exist; Payroll at 18 th monthly.
20. Taxes payable
As of 30 June As of 31
Item Note
2013 December 2012
Corporate income tax 822,479.90 7,892,692.72
Value-added tax -6,357,837.52 548,340.05 17%
Business tax -94,178.66 211,293.84 3%,5%
Consumption Tax 314,363.03
Land use tax 90,671.00
Property Tax -30,701.37
Urban maintenance and construction
89,932.40 882,086.24
tax 7% of the turnover tax
Education surcharge -73,227.29 652,205.99 3%、2%of the turnover tax
Stamp Tax 7,254.50 3,630.20
Individual Income Tax 311,502.37 178,693.28
Total -4,919,741.64 10,368,942.32
21.Dividends payable
Name As of 30 June 2013 As of 31 December 2012
Jiangsu Huabang Mechanical and 284,521.88
145
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Name As of 30 June 2013 As of 31 December 2012
electrical equipment engineering Co.,
Ltd
Ningbo Yinzhou New Star Plastic
284,521.88
Electronic Co.,Ltd
Yuyao Guochang Electronic Co.,Ltd 474,203.13
Nanjing Yongxin Electrical Appliance
284,521.88
Matching Co., Ltd.
Jingjiang Huasheng Communication
94,840.62
Equipment Co., Ltd.
Jiangdu Yate Communications Plastic
474,203.13
Products Co,.Ltd(Jiangdu Branch)
Zhenjiang Shengtang Photoelectric
284,521.88
Device Co,.Ltd
Total 2,181,334.40
22. Other payables
(1)Analysis of aging
As of 30 June 2013 As of 31 December 2012
Item Percentage Percentage
Amount Amount
(%) (%)
Within 1 year 2,447,317.34 5.23 29,610,322.24 64.36
1-2 years 14,966,427.59 31.97 8,617,449.59 18.73
2-3 years 1,723,669.65 3.68 3,230,276.95 7.02
over 3 years 27,680,841.99 59.12 4,550,658.87 9.89
Total 46,818,256.57 100.00 46,008,707.65 100.00
(2) Other payables to shareholders holding 5% or above voting shares of the company, as well as that of
related parties.
None.
(3) Explain for large amount other payables
Name Amount Nature
Engineering service charge 25,402,872.54 Service charge
Total 25,402,872.54 ——
146
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
23. Share capital
Increases(+) or decreases(-) in current year
Shares
As of 31 Issuance transferred As of 30 June
Item Gift
December 2012 of new from Others Subtotal 2013
share
shares capital
reserve
Total 215,000,000.00 215,000,000.00
24. Capital reserve
As of 31 Increase
Decrease As of 30 June
Item December 2012 during the year
during the year 2013
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
25. Surplus reserve
As of 31 Increase Decrease As of 30 June
Item
December 2012 during the year during the year 2013
Statutory surplus reserves 589,559.77 589,559.77
Total 589,559.77 589,559.77
26. Undistributed profit
Proportion of
Item Amount Extraction or
Distribution
Undistributed profit at the end of last year before
-19,387,788.41 ——
adjustments
The sum of undistributed profit at the beginning of the
——
adjustment year (increase +, reduction -)
Undistributed profit at the beginning of a year after
——
adjustment
147
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Proportion of
Item Amount Extraction or
Distribution
Add: Net profit attributable to the owner of the parent
-2,719,217.34 ——
company this year
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 -22,107,005.75
27. Operating revenues and costs
(1)Operating revenues
Item For 31 December 2012 For 31 December 2011
Main operating revenue 1,200,190,368.34 1,339,172,102.91
Other operating revenue 7,367,170.48 10,791,079.91
Operating cost 1,043,008,171.55 1,167,040,803.45
(2)Main Business (In terms of industry)
As of 30 June 2013 As of 30 June 2012
Item Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Communications equipment
1,149,500,752.80 1,000,433,034.29 1,287,158,567.25 1,119,838,957.60
manufacturing industry
Electrical equipment
50,689,615.54 37,864,868.93 52,013,535.66 39,522,573.72
manufacturing industry
Total 1,200,190,368.34 1,038,297,903.22 1,339,172,102.91 1,159,361,531.32
(3)Main Business (In terms of different products)
Item As of 30 June 2013 As of 30 June 2012
148
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Communication products 1,149,500,752.80 1,000,433,034.29 1,287,158,567.25 1,119,838,957.60
Electrical products 50,689,615.54 37,864,868.93 52,013,535.66 39,522,573.72
Total 1,200,190,368.34 1,038,297,903.22 1,339,172,102.91 1,159,361,531.32
(4)Main Business (In terms of different regions)
As of 30 June 2013 As of 30 June 2012
Name of Region Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Domestic market 1,189,316,018.09 1,027,739,558.96 1,335,490,703.78 1,156,726,099.11
Oversea market 10,874,350.25 10,558,344.26 3,681,399.13 2,635,432.21
Total 1,189,316,018.09 1,027,739,558.96 1,339,172,102.91 1,159,361,531.32
(5)The amount of operating revenues received from the top 5 customers this year
Proportion taking in total
Item Operating revenues operating income of the
Company (%)
China Telecom Co., Ltd 391,148,034.01 32.39
China Mobile Co., Ltd 137,030,222.86 11.35
China Tietong Co., Ltd 67,330,347.84 5.58
China Potevio 63,315,523.93 5.24
China United Co., Ltd 22,725,524.66 1.88
Total 681,549,653.30 56.44
28. Sales tax and extra charges
Item As of 30 June 2013 As of 30 June 2012 Rate
Business tax 460,965.09 1,354,276.74 3%-5%
Education surcharge 1,668,410.39 1,208,463.86 3%、2%
Urban maintenance and
2,565,200.19 1,711,522.03 7%
construction tax
Others 11,503.28
Total 4,694,575.67 4,285,765.91
29. Sales expenses
149
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Items As of 30 June 2013 As of 30 June 2012
Salary 22,286,765.42 19,085,787.64
Employee benefits 1,880,925.49 1,773,291.59
Housing accumulation funds 1,261,947.34 1,080,697.83
Union funds 238,137.23 203,934.33
Worker education funds 304,153.84 260,469.18
Social insurance premium 3,926,171.42 4,088,701.37
Depreciation expense 438,796.55 403,976.97
Lease expense 153,155.50 56,522.38
Office allowance & Others 6,844,885.69 7,955,007.81
Travel expenses 9,254,061.36 7,382,988.03
Business entertainment 14,427,339.98 15,066,525.46
Water and electricity fees 402,659.48 420,498.81
Low-valued consumables and amortize 92,747.81 150,584.20
Transport fees and transport damages 10,053,206.72 14,606,149.98
Repair charge 149,818.82 605,116.13
Service charge 1,892,650.70 1,976,502.25
Advertising fees 372,783.11 394,725.56
Exhibition fees 57,500.00 60,047.47
Conference expenses 2,219,895.40 2,703,969.44
Sales service charge 1,138,934.81 2,023,017.91
Business publicity fees 487,840.68 777,631.99
Technical services charge 131,166.00 136,977.15
Consulting, intermediary, legal fees 186,697.56 82,787.22
Labor protection fees 339,015.04 457,172.70
Postage telephone and telegram fees 65,165.57 68,052.65
Co-ordination fee 1,284,522.65 1,341,431.84
Packing expenses 106,261.34 167,848.95
Insurance premium 746,023.16 779,074.79
Cost of Quality 7,014.89 7,325.68
Storage charges
Test fees 176,414.14 184,229.95
Equipment maintain fees 949,474.00 991,539.27
150
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Items As of 30 June 2013 As of 30 June 2012
Others 397,417.21 626,047.83
Total 82,273,548.91 85,918,634.36
30. Administrative expenses
Items As of 30 June 2013 As of 30 June 2012
Salary expenses 8,876,366.36 8,245,429.31
Employee benefits 1,915,788.35 1,642,433.51
Union funds 251,001.70 233,160.36
Worker education funds 289,483.95 268,907.27
Social insurance premium 3,891,379.62 3,614,778.20
Depreciation expense 1,524,595.94 1,256,951.30
Amortization charge 300,390.80 464,536.65
Lease expense 2,612,956.35 4,114,901.81
Office allowance 1,661,645.73 3,027,588.59
Travelling expense 1,667,981.55 1,046,615.64
Business entertainment 1,597,446.05 2,102,839.94
Insurance Expense 458,613.09 1,038,165.84
Water and electricity fees 499,345.22 429,460.73
Low-valued consumables and amortization 110,881.59 123,413.80
Technology development costs 30,618,867.19 27,095,886.31
Repair charge 461,578.12 795,685.64
Audit expenses 164,070.38 189,333.74
Labor protection fees 186,331.05 183,013.03
Director membership dues 166,923.08 183,300.51
Consulting, intermediary, legal fees 711,985.28 690,078.30
Environmental expenditure 31,300.00 25,650.00
Taxation 945,903.57 1,073,796.97
Conference expenses 551,019.09 541,207.03
Property management fees 758,993.80 745,478.30
Transport charge 508,925.35 602,173.29
Detect cost 41,136.99 40,404.46
Advertising fees 311,192.76 305,651.31
151
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Items As of 30 June 2013 As of 30 June 2012
Site use fee 115,845.13 113,782.26
Others 317,680.48 309,405.23
Postal fees 25,714.10 25,256.21
Housing accumulation funds 1,253,989.20 1,164,854.95
Total 62,829,331.87 61,694,140.49
31. Financial expenses
Item As of 30 June 2013 As of 30 June 2012
Interest expense 13,618,333.70 18,263,504.59
Less: Interest income 2,139,988.73 -1,511,183.47
Exchange loss 62,968.20 17,764.99
Less: Exchange gain 191,643.55 -31,197.78
Bank charges 138,256.78 203,904.03
Others 105.24
Total 11,488,031.64 16,942,792.36
32. Investment income
(1) Details of Investment Income
As of 30 June
Item As of 30 June 2013
2012
Long-term equity investment income by cost method 84,149.16
Long-term equity investment income by equity method -1,967,352.65 1,462,045.66
Total -1,883,203.49 1,462,045.66
(2) Long-term equity investment income by cost method
Investee As of 30 June As of 30 June Reasons for movement
2013 2012
Nanjing Yuhua electroplating
— —
factory
Nanjing Yuhua Galvanization More dividends received
84,149.16 —
Factory
Total 84,149.16 —
152
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
(3)Long-term equity investment income by equity method
As of 30 June As of 30 June Reasons for movement
Investee
2013 2012
Nanjing Prachanda Live Optical Network
-2,559,926.08 1,249,537.60 Business fluctuations
Co., Ltd
Nanjing Putian Datang Information and
477,145.68 134,863.31 Business fluctuations
Electric Company Ltd.
Nanjing Putian Zhongyou
-17,969.72 Business fluctuations
Telecommunication Co., Ltd.
Nanjing Putian Telecommunication
220,448.93 82,092.20 Business fluctuations
Technology Industry Park Co., Ltd
Nanjing Putian Telege Cable Co., Ltd. -105,021.18 13,522.27 Business fluctuations
Total -1,967,352.65 1,462,045.66
Explain of investment income
During the reporting period, no significant repatriation of investment income restrictions
33. Losses of devaluation of asset
Item As of 30 June 2013 As of 30 June 2012
Loss on bad debt 591,682.86 1,999,859.94
Total 591,682.86 1,999,859.94
34. Non-operating income
(1) Details of Non-operating Income
As of 30 June 2013 As of 30 June 2012
Included in the Included in the
current profits and current profits and
Item
Amount losses of the Amount losses of the
decriminalizes decriminalizes
amount amount
Gains from disposal of
36,352.80 36,352.80 356,787.74 356,787.74
non-current assets
153
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 30 June 2013 As of 30 June 2012
Included in the Included in the
current profits and current profits and
Item
Amount losses of the Amount losses of the
decriminalizes decriminalizes
amount amount
Include: Gains from
36,352.80 36,352.80 356,787.74 356,787.74
disposal of fixed assets
Gains from
disposal of Intangible assets
Gains from debt
1,030.00 1,030.00
restructuring
Government grants 1,793,770.76 1,793,770.76 779,939.18 779,939.18
Others 97,544.00 97,544.00 68,700.00 68,700.00
Total 1,927,667.56 1,927,667.56 1,206,456.92 1,206,456.92
(2) Details of Government Subsidy
As of 30 June As of 30 June
Item Note
2013 2012
VAT refunding due to being welfare
Refund of VAT 1,391,604.16 359,938.99
production enterprises
Development funds from software and
Subsidy income 402,166.60 420,000.19
information services of Nanjing
Total 1,793,770.76 779,939.18
35. Non-operating expense
As of 30 June 2013 As of 30 June 2012
Included in the Included in the
current profits and current profits and
Item
Amount losses of the Amount losses of the
decriminalizes decriminalizes
amount amount
Loss from disposal of
42,279.87 42,279.87
non-current assets
Include: loss from disposal
42,279.87 42,279.87
of fixed assets
Loss from debt restructuring 30,865.75 30,865.75
154
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
As of 30 June 2013 As of 30 June 2012
Included in the Included in the
current profits and current profits and
Item
Amount losses of the Amount losses of the
decriminalizes decriminalizes
amount amount
External donation 1,000.00 1,000.00
Others 568,250.10 568,250.10 340,981.40 340,981.40
Total 600,115.85 600,115.85 383,261.27 383,261.27
36. Income tax
Item As of 30 June 2013 As of 30 June 2012
Current income tax expense calculated to tax law and relevant
3,597,267.56 2,022,892.44
provisions
Deferred income tax charges
Total 3,597,267.56 2,022,892.44
37. 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)
As of 30 June As of 30 June
Item Code
2013 2012
Net profit attributable to ordinary shareholders of parent -2,719,217.34 6,038,203.37
P0
company(Ⅰ)
Net profit attributable to the company's ordinary shareholders -3,466,018.77 5,763,929.27
after P0
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
S1
transferred to share capital or distribution of stock dividend
Increase of amount of common stock owing to issue of bonds
Si
newly or bonds issued to be transfer to common stock
155
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Decrease of amount of common stock due to purchase-back
Sj
common stock ,etc
Decrease of amount of common stock in the reporting period Sk
Amount of months in the reporting period M0 6
Accumulated months since the second month when increase of
Mi
amount of common stock
Accumulated months since the second month when decrease of
Mj
amount of common stock
Average weighted amount of common stock outstanding S 215,000,000.00 215,000,000.00
Basic earnings per share(Ⅰ) -0.013 0.028
Basic earnings per share(Ⅱ) -0.016 0.027
Net profit attributable to ordinary shareholders of parent
P1
company after adjustment(Ⅰ)
Net profit attributable to the company's ordinary shareholders
after P1
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
215,000,000.00 215,000,000.00
consideration of diluted affect
Diluted earnings per share(Ⅰ) -0.013 0.028
Diluted earnings per share(Ⅱ) -0.016 0.027
(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.
156
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
38. Other comprehensive income
As of 30 June As of 30 June
Item
2013 2012
4. Conversion difference arising from foreign currency financial
293,104.46 -93,168.18
statement
Subtotal 293,104.46 -93,168.18
Total 293,104.46 -93,168.18
39. Item description in the statement of cash flow
(1) Other cash receipts relating to operating activities
Item As of 30 June 2013
Interest income 2,139,988.73
Temporary receipts and repayment of temporary
payment 12,005,844.68
Others 191,643.55
Total 14,337,476.96
(2) Other cash payments relating to operating activities
Item As of 30 June 2013
Temporary payment 12,382,085.31
Various expenses 82,450,591.89
Others 201,330.22
Total 95,034,007.42
40. Supplementary information about consolidated statement of cash flows
157
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
(1) Supplementary information about consolidated statement of cash flows
Item As of 30 June 2013 As of 30 June 2012
1、Adjustment of net profit into operation activity cash flow:
Net profit -1,480,723.02 12,343,535.18
Add: provision for depreciation of assets 591,682.86 1,999,859.94
Depreciation of fixed assets, consumption of oil gas assets and
5,378,053.88 4,675,046.17
depreciation of productive biological assets
Amortization of intangible assets 722,546.81 714,154.29
Amortization of long-term prepayments
Loss from disposal of fixed assets, intangible assets and other long
-36,352.80 -275,457.62
term assets (gain 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 “-”) 13,618,333.70 18,020,879.16
Investment loss (gain is listed with “-”) 1,883,203.49 -1,462,045.66
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 “-”) 778,710.84 -43,288,617.28
Decrease of operational accounts receivable (increase is listed
-153,427,525.04 -158,004,011.54
with “-”)
Increase of operational accounts payable (decrease is listed with
-3,283,218.67 137,067,092.81
“-”)
Others
Net cash flow arising from operation activities -135,255,287.95 -28,209,564.55
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 280,748,252.81 301,632,757.53
Less: Balance of cash at period-begin 429,693,529.41 310,453,749.89
Add: Balance of cash equivalent at period-end
158
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 As of 30 June 2012
Less: Balance of cash equivalent at period-begin
Net increase in cash and cash equivalent -148,945,276.60 -8,820,992.36
(2) Cash and cash equivalent
Item As of 30 June 2013 As of 30 June 2012
Cash 280,748,252.81 429,693,529.41
Cash in hand 73,773.29 15,216.21
May at any time is used to pay the bank deposit 246,815,192.14 429,678,313.20
May at any time for the payment of the other monetary funds 33,859,287.38
Can be used for the storage of the central bank money to pay
Deposit money of payment
Dismantle put trade payment
Cash equivalent
Three months due debt investments
Cash and cash equivalent at the year end 280,748,252.81 429,693,529.41
VIII .Related parties and related transaction
1. Condition of parent company
Name of the Registration
Relation Type of Registered Legal Business
parent company capital
entity Address representative nature
(Unit: RMB)
No. 2 Tudi 2
China Potevio Road, Zhongguan
Parent State-owne informatio 1,903,050,000.
Company village economy Xing Wei
Company d n industry 00
Limited zone, Haidian
district, Beijing
(Continued)
159
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
The
The proportion of voting
Name of the Rate of Share Held between company's
rights between parent Organization
parent Parent Company and the Ultimate
company and the company code
company Company (%) controlling
(%)
party
China Potevio China
Company 53.49 53.49 Potevio 71093155-5
Limited Corporation
2. Condition of subsidiaries
Registere Legal
Type of Type of Business
Name of the companies d Representativ
subsidiaries Entity Nature
Address e
Nanjing Southern Sales
Limited
Telecommunications Trading Nanjing Hong Wang telecommunication
company
Company Limited products
Nanjing Bada Manufacture of
Limited Manufactur
Telecommunications Co., Nanjing Jin Qiao telecommunication
company e
Ltd. s
Manufacture
Nanjing Putian Information
Limited Manufactur and sale of
Technology Nanjing Yong Shu Lu
company e telecommunication
Company Ltd.
s
Manufacture
Nanjing Putian Telege Limited Manufactur and sale of
Nanjing Baosun Fu
Intelligent Building Ltd company e telecommunication
s
Putian Telecommunications company Sale of
Manufactur HongKon
(Hong Kong) limited by Liang Sun telecommunication
e g
Co., Ltd. shares s
Web-based
Beijing Picom electronic
Limited Manufactur
Telecommunications Beijing Junhai Lu products, digital
company e
Equipment Ltd. transmission
equipment
Nanjing Putian WongShi Manufacture
Limited Manufactur
Telecommunications Co., Nanjing Qiang Sun and sale of
company e
Ltd. telecommunication
160
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Registere Legal
Type of Type of Business
Name of the companies d Representativ
subsidiaries Entity Nature
Address e
s
Manufacture
Nanjing Putian Changle
Limited Manufactur and sale of
Telecommunications Nanjing Qiang Wang
company e telecommunication
Equipment Co., Ltd
s
Manufacture
Nanjing Putian Network Limited Manufactur Yingqian and sale of
Nanjing
Company Ltd. company e Guan telecommunication
s
Manufacture
Nanjing Putian
Limited Manufactur and sale of
Telecommunication Nanjing Chuanxi Liu
company e telecommunication
Technology Co., Ltd
s
Product and sales
Nanjing Mennekes Electric Limited Manufactur
Nanjing Hong Wang socket for
Appliances Ltd. company e
industrial use
(Continued)
The proportion of
Rate of Share held
Registration voting rights
between parent Organization
Name of the companies Capital (unit: between parent
company and the code
Yuan) company and the
Company (%)
company (%)
Nanjing Southern
Telecommunications 34,205,147.83 98.24 98.24 13492047-8
Company Limited
Nanjing Bada
Telecommunications Co., 11,301,400.00 60.00 60.00 13554048-5
Ltd.
Nanjing Putian Information
Technology 14,000,000.00 99.98 99.98 13498233-7
Company Ltd.
Nanjing Putian Intelligent
12,000,000.00 45.77 45.77 72172045-4
Building Ltd
Putian Telecommunications
(Hong Kong) HKD 2,000,000 90.00 90.00 #61770414
Co., Ltd.
161
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
The proportion of
Rate of Share held
Registration voting rights
between parent Organization
Name of the companies Capital (unit: between parent
company and the code
Yuan) company and the
Company (%)
company (%)
Beijing Picom
Telecommunications USD 500,000 51.00 51.00 717741092
Equipment Ltd.
Nanjing Putian WongShi
Telecommunications Co., 90,190,000.00 99.42 99.42 71093784-2
Ltd.
Nanjing Putian Changle
Telecommunications 10,000,000.00 50.70 50.70 13554526-X
Equipment Co., Ltd
Nanjing Putian Network
10,000,000.00 78.00 78.00 74236858-4
Company Ltd
Nanjing Putian
Telecommunication 5,000,000.00 70.00 70.00 13513422-5
Technology Co., Ltd
Nanjing Mennekes Electric
USD 5,200,000 75.00 75.00 60895120-X
Appliances Ltd.
3. Condition of the joint ventures and associates
(1) Joint venture
Regist Voting
Proportion ration proportion
Legal Relationsh
Invested Place of Business of capital in Organization
Types perso ip with
units registration nature shareholding invested code
n the company
（%） company
(%)
Nanjing
37,
Prachanda
Sino-foreig Optical 088
Live Zhang
n joint Nanjing communication 50 ,80 50 Joint venture 55553484-X
Optical Shenwei
venture of production 0.0
Network
0
Co., Ltd
(2) Affiliated venture
162
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Registrat Voting
ion proport
Proporti
Place of capital ion in Relation
Invested Legal Business on of Organizat
Types registrati investe ship with
units person nature sharehol ion code
on d the company
ding (%)
compan
y (%)
Nanjing Putian Communic
Domestic
Datang ation 5,000
(limited Yan Affiliated 77701905
Information Nanjing products ,000. 40 40
liability Yaoming venture 0
and Electric production 00
company)
Company Ltd. sales, etc
Domesti
Communic
Nanjing Putian c
ation
Zhongyou (limited 1,000 Affiliated 24970220
Nanjing ZhaoTiwu products 30 30
Telecommunic liability ,000 venture 0
production
ation Co., Ltd. company
sales, etc
)
Domesti
Nanjing Putian Industrial
c
High park venue 337,5
(limited ShanYou Affiliated 66737288
Technology Nanjing rental 48,14 49.64 49.64
liability Kong venture 1
Industry Co., manageme 1.29
company
Ltd. nt etc
)）
4. Other related parties
Relationship with
Company Name Organization code
the company
Controlled by the parent
Nanjing Putian Swanking Electrical Co., Ltd 724594270
company
Controlled by controlling
Shenzhen Putian Lingyun Electronics Co. Ltd shareholder of the parent 732050660
company
Shanghai Putian Post And Controlled by the parent
607285751
Telecommunications Technology Co., Ltd. company
Beijing Great Gragon Information Technology Controlled by the parent
743349502
International Co.,Ltd. company
Chengdu Putian Telecommunications Cable Controlled by the parent
20193968X
CO., LTD company
163
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Relationship with
Company Name Organization code
the company
Controlled by the parent
Putian Institute of Technology Co., Ltd. 710929105
company
Wuhan is Ablaze Putian information Controlled by the parent
695345127
technology Co., Ltd. company
5. Related transaction
(1) Purchasing goods, accept services related party transactions
As of 30 June 2013
Pricing policy
Ratio in
Related transaction and
Related Parties similar
content decision-making Amount
trade
processes
amount %
Nanjing Prachanda Live Optical
Telecommunications Market Pricing 23,300,743.64 2.33
Network Co., Ltd
China Putian Information Industry
Telecommunications Market Pricing 11,021,914.53 1.10
Co., Ltd.
Chengdu Putian
Telecommunications Cable Co., Telecommunications Market Pricing 3,080,417.95 0.31
Ltd.
Total 37,403,076.12 3.74
As of 30 June 2012
Pricing policy
Ratio in
Related transaction and
Related Parties similar
content decision-making Amount
trade
processes
amount %
China Putian Information Industry
Telecommunications Market Pricing 25,504.27 0%
Co., Ltd.
Nanjing Putian Datang
Information and Electric Telecommunications Market Pricing 258,274.34 0.02%
Company Ltd.
Nanjing Putian Swanking
Telecommunications Market Pricing 719,725.78 0.06%
Electrical Co., Ltd
Nanjing Prachanda Live Optical Telecommunications Market Pricing 37,213,349.64 3.20%
164
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Network Co., Ltd
Wuhan Flames Putian
Telecommunications Market Pricing 1,449,358.97 0.12%
Information Technology Co., Ltd.
Nanjing Putian
Telecommunications Market Pricing 30,034.19 0%
Telecommunications Co., Ltd.
Total 39,696,247.19 3.40%
(2) The sale of goods, providing labor services related transaction
As of 30 June 2013
Pricing policy
Ratio in
Related transaction and
Related Parties similar
content decision-making Amount
trade
processes
amount %
China Putian Information Industry
Telecommunications Market Pricing 66,840,783.74 5.82
Co., Ltd.
Putian Technology Research
Telecommunications Market Pricing 489,564.10 0.04
Institute Co., Ltd.
Nanjing Putian Post
Telecommunications Market Pricing 107,692.31 0.01
Telecommunications Co., Ltd.
Nanjing Prachanda Live Optical
Telecommunications Market Pricing 12,129.05 -
Network Co., Ltd
Nanjing Putian Datang
Information and Electric Telecommunications Market Pricing 2,431.63 -
Company Ltd.
Total 67,452,600.83 5.87
As of 30 June 2012
Pricing policy
Ratio in
Related transaction and
Related Parties similar
content decision-making Amount
trade
processes
amount %
China Putian Information Industry
Telecommunications Market Pricing 49,394,450.80 3.69
Co., Ltd.
Putian Technology Research
Telecommunications Market Pricing 158,119.66 0.01
Institute Co., Ltd.
Nanjing Putian Swanking Telecommunications Market Pricing 4,477.69 0.00
165
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Electrical Co., Ltd
Nanjing Putian Post
Telecommunications Market Pricing 70,256.41 0.01
Telecommunications Co., Ltd.
Total 49,627,304.56 3.71
(3)Related leasing
Date start Date for Accordance for
rental fee for the
Asset for for termination reorganization
Lessor Lessee period
leasing leasing of leasing of rental income
Nanjing
Nanjing Putian High Putian
Building
Technology Industry telecommu 2013-01-01 2013-12-31 Market Pricing 5,473,012.56
and land
Co., Ltd. nication
Co., Ltd
(4)Related guarantee
Whether
Amount of Date start
Assurance Due date for the
Secured party guarantee for
Provider guarantee guarantee is
guarantee
carried out
China Putian Information Nanjing Putian
20,000,000.00 2012-8-12 2013-8-12 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
30,000,000.00 2012-8-20 2013-8-20 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
20,000,000.00 2012-8-28 2013-8-28 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
30,000,000.00 2012-9-5 2013-9-5 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
20,000,000.00 2012-9-10 2013-9-10 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
30,000,000.00 2012-9-16 2013-9-16 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
30,000,000.00 2012-9-23 2013-9-23 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
44,000,000.00 2013-5-17 2014-5-17 No
Industry Co., Ltd. telecommunication Co., Ltd.
166
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Whether
Amount of Date start
Assurance Due date for the
Secured party guarantee for
Provider guarantee guarantee is
guarantee
carried out
China Putian Information Nanjing Putian
30,000,000.00 2012-11-23 2013-11-23 No
Industry Co., Ltd. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
10,000,000.00 2012-9-13 2013-9-13 No
Industry Co., Ltd. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
10,000,000.00 2013-5-22 2014-5-22 No
Industry Co., Ltd. telecommunication Co., Ltd.
China Putian Information Nanjing Putian
20,000,000.00 2013-1-14 2014-1-14 No
Industry Group Co. telecommunication Co., Ltd.
China Putian Information Nanjing Putian Telege
30,000,000.00 2012-12-11 2013-12-11 No
Industry Group Co. Intelligent Building Ltd
Nanjing Putian Nanjing Putian Telege
20,000,000.00 2012/12/05 2013/12/04 No
telecommunication Co., Ltd. Intelligent Building Ltd
Nanjing Southern
Nanjing Putian
Telecommunications 20,000,000.00 2012/08/01 2013/07/31 No
telecommunication Co., Ltd.
Company Limited
Nanjing Putian Nanjing Putian Telege
10,000,000.00 2012/09/19 2013/09/19 No
telecommunication Co., Ltd. Intelligent Building Ltd
Nanjing Putian Nanjing Putian Telege
10,000,000.00 2012/10/09 2013/10/09 No
telecommunication Co., Ltd. Intelligent Building Ltd
6. Payables and receivables of related parties
(1) The accounts affiliated parties shown in the list below money situation
Name of the related As of 30 June 2013 As of 31 December 2012
Item
parties Book amount Provision Book amount Provision
China Putian
Accounts
Information Industry 45,254,394.79 2,936.37 20,459,786.64 -
receivable
Co., Ltd.
Shanghai Putian
Accounts
Youtong Technology 13,341,700.00 13,341,700.00
receivable
Co., Ltd.
Accounts Shanghai Putian
334,200.00 1,677,499.70
receivable Network Company Ltd.
Accounts Nanjing Putian Post 224,672.80 225,072.80
167
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item Name of the related As of 30 June 2013 As of 31 December 2012
receivable Telecommunications
Co., Ltd.
Nanjing Prachanda
Accounts
Live Optical Network 6,141.50
receivable
Co., Ltd
Putian Information
Accounts
Technology Research 16,635.00
receivable
Co.,Ltd
China Putian
Accounts
Information Industry 500,000.00
Prepayable
Co., Ltd.
Beijing Picom
Other
Telecommunications 28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
receivables
Equipment Co., Ltd
(2) The cope with affiliated parties shown in the list below money situation
Item Amount at the year Amount at the
Name of the related parties
end year-beginning
Accounts Nanjing Prachanda Live Optical Network Co.,
51,029,590.92 53,080,931.94
payable Ltd
Accounts
China Putian Information Industry Co., Ltd. 16,112,160.00 9,177,946.90
payable
Accounts
Nanjing Putian Swanking Electrical Co., Ltd 158,830.47 388,590.03
payable
Accounts Nanjing Putian Telecommunication
222,381.72
payable Technology Industry Park Co., Ltd
Accounts Nanjing Putian Datang information electronic
202,094.59
payable Co., Ltd
Advances from
China Putian Information Industry Co., Ltd. 8,158,434.00
customers
Nanjing Putian High Technology Industry Co.,
Other payables 1,200,118.40
Ltd
IX．Contingencies
1. The pending litigation or arbitration formed a liability and its financial effect
None
168
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2. Contingent liabilities formed by external guarantee and its financial effect
In addition the Company provides guarantees to related parties, the inaction of other non-related parties to
provide security matters.
3. Other contingent liabilities
None
X. Commitments
1. Significant commitment matters
None
2. Early promise fulfillment situation
None
XI. Events occurring after the balance sheet date
1. Important matters after balance sheet date
None
2. Balance sheet date profit allocation illustrate
None
3. Other matters after balance sheet date
None
XII. Other significant matters
1. Financial assets and financial liabilities in foreign currency
the
cumulative
As of 31 Current Current
changes in As of 30 June
Items December changes in provision for
fair value 2013
2012 fair value impairment
included in
equity
Financial assets:
3. Loans and receivables 8,233,017.49 7,277,704.87
Total 8,233,017.49 7,277,704.87
Financial liability 15,025,300.33 7,575,525.34
169
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2. Other significant matters
None
XIII. Notes to main items of financial statement of parent company
1. Account receivable
(1)Classification of accounts receivable
As of 30 June 2013
Book balance Reserve for bad debts
Item
Percentage Percentage
Amount Amount
(%) (%)
1. Single amount dramatic and individual
provision for the accounts receivable
2. Classification as the group of
583,990,607.70 99.68 6,448,216.39 1.10
provision for account receivable
Group1 194,047,139.06 33.12
Group 2 367,273,566.64 62.69
Group 3 22,669,902.00 3.87 6,448,216.39 28.44
3. Single amount not significant but
1,862,635.83 0.32 1,862,635.83 100.00
single provision for accounts receivable
Total 585,853,243.53 8,310,852.22
As of 31 December 2012
Book balance Reserve for bad debts
Item
Percentage Percentage
Amount Amount
(%) (%)
1. Single amount dramatic and individual
provision for the accounts receivable
2. Classification as the group of provision
454,380,793.43 99.58 6,158,397.89 1.36
for account receivable
Group1 134,392,323.92 29.45
Group 2 304,589,674.95 66.76
Group 3 15,398,794.56 3.37 6,158,397.89 39.99
3. Single amount not significant but
1,894,067.63 0.42 1,894,067.63 100.00
single provision for accounts receivable
Total 456,274,861.06 8,052,465.52
170
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
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.
Adopt age analysis provision in group as follows:
As of 30 June 2013 As of 31 December 2012
Age Proportion Reserve for Proportion Reserve for bad
Book balance (%) bad debts Book balance (%) debts
Within 1
year
157,797,931.56 72.81% 121,288,874.20 80.97%
(contain 1
year)
1 to 2 years 29,001,665.35 13.38% 15,555,295.54 10.38%
2 to 3 years 20,175,971.52 9.31% 683,427.15 3,495,141.56 2.33% 349,514.16
3 years
9,741,472.63 4.5% 5,764,789.25 9,451,807.18 6.32% 5,808,883.73
above
3 to 4 years 2,665,987.76 1.23% 799,796.33 2,284,059.19 1.53% 685,217.76
4 to 5 years 2,056,354.19 0.95% 822,541.68 3,274,986.10 2.19% 1,309,994.44
5 years or
5,019,130.68 2.32% 4,142,451.24 3,892,761.89 2.6% 3,813,671.53
above
Total 216,717,041.06 -- 6,448,216.39 149,791,118.48 -- 6,158,397.89
Closing single amount not significant but single provision for accounts receivable
Receivables Book amount Bad debt Proportion Reason
Age longer
1,748,580.14 1,748,580.14 100.00% cannot be
M/S WHISTLER TELECOM (PVT) LTD recalled
Age longer
101,555.69 101,555.69 100.00% cannot be
PRADUFA recalled
Age longer
12,500.00 12,500.00 100.00%
China Unicom Nanjing Branch cannot be
171
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
recalled
Total 1,862,635.83 1,862,635.83 —— ——
(2) Current payback or return of receivables
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) Written -off of accounts receivable in the current period
None
(4) Accounts receivable due from shareholder who has more than 5% (including 5 %) voting shares of the
Company at year-end
At 30 June 2013, amount of RMB 26,606,165.74 Yuan is due from China Putian Information Company Limited
Parent company, aging within 3 year, which include RMB 1,477.12 Yuan 2 to 3 year, withdrawing bad debts RMB
147.71 Yuan at 30 June 2013.
At 31 December 2012, amount of RMB 15,911,331.62 Yuan is due from China Putian Information Company
Limited, Parent company, aging within 1 year, no provision had been provided at 31 December 2012.
(5) Top 5 debtors of accounts receivable
Proportion of
Relationship with the
Name of the debtors Amount Aging total amount
Company
(%)
Within 1
China Telecom Co., Ltd. Jiangsu 82,978,417.53 14.16
Non-related party year
Branch
2,378.00 2 to 3 year 0.01
Within 1
18,353,708.29 3.13
Agricultural Bank of China Non-related party year
15,149,360.70 1 to 2 year 2.59
Within 1
19,807,233.53 3.38
China Putian Information Industry year
Parent company
Co., Ltd. 6,797,455.09 1 to 2 year 1.16
1,477.12 2 to 3 year -
Nanjing Hehao Communication Within
Non-related party 26,588,864.00 4.54
Technology Co., Ltd. 1year
Within
China Telecom Co., Ltd. Xi'an 10,437,092.73 1.78
Non-related party 1year
Branch
5,342,760.06 1 to 2 year 0.91
Total —— 185,458,747.05 —— 31.66
172
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
(6) Accounts receivable of related parties accounts
Relationship with the Proportion of total
Name of the debtors Amount
Company amount (%)
China Putian Information Industry
Parent company 26,606,165.74 4.54
Co., Ltd
Shanghai Putian Youtong Technology Controlled by the same
13,341,700.00 2.28
Co., Ltd. parent company
Beijing Dragon Oriental International Controlled by the same
7,396,003.60 1.26
Information Technology Co., Ltd. parent company
Nanjing Prachanda Live Optical
Affiliated venture 6,141.50 -
Network Co., Ltd
Total 47,350,010.84 8.08
(7) Balance of accounts receivable in foreign currencies
As of 30 June 2013 As of 31 December 2012
Foreign currency Original Exchange RMB Original Exchange RMB
currency rate converted currency rate converted
USD 299,350.51 6.18 1,850,135.83 433,361.90 6.2855 2,723,896.22
Total —— —— 1,850,135.83 —— —— 2,723,896.22
2. Other receivables
(1)Classification of other receivables
As of 30 June 2013
Book balance Reserve for bad debts
Item
Percentage Percentage
Amount Amount
(%) (%)
1. Single amount dramatic and individual
28,912,122.71 28.9 28,912,122.71 100.00
provision for the accounts receivable
2. Classification as the group of provision for
67,039,254.92 67.02 8,401,050.67 12.53
account receivable
Group1 34,428,451.07 34.42 4,800,000.00 13.94
Group 2 23,593,027.85 23.58 - -
Group 3 9,017,776.00 9.02 3,601,050.67 39.93
3. Single amount not significant but single
4,085,166.33 4.08 4,085,166.33 100.00
provision for accounts receivable
173
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Total 100,036,543.96 41,398,339.71
As of 31 December 2012
Book balance Reserve for bad debts
Item
Percentage Percentage
Amount Amount
(%) (%)
1. Single amount dramatic and individual
28,912,122.71 29.47 28,912,122.71 100.00
provision for the accounts receivable
2. Classification as the group of provision for
65,108,059.21 66.37 8,625,173.32 13.25
account receivable
Group1 35,494,184.93 36.18 5,400,000.00 15.21
Group 2 15,276,729.67 15.57
Group 3 14,337,144.61 14.61 3,225,173.32 22.50
3. Single amount not significant but single
4,085,166.33 4.16 4,085,166.33 100.00
provision for accounts receivable
Total 98,105,348.25 41,622,462.36
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.
Large amount of other receivables nature or content
Name of the debtors Book balance Reserve for bad debts Proportion(%) reason
Beijing Picom
Age longer cannot be
Telecommunications 28,912,122.71 28,912,122.71 100%
recalle
Equipment Ltd
Adopt age analysis provision in group as follows:
As of 30 June 2013 As of 31 December 2012
Age Reserve for Proportion Reserve for
Book balance Proportion (%) bad debts Book balance (%) bad debts
Within 1 year
(contain 1 2,464,861.10 5.67% 23,467,986.51 47.09%
year)
174
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
1 to 2 years 18,125,712.38 41.72% 1,088,906.03 2.19%
2 to 3 years 1,365,891.54 3.15% 136,589.15 2,834,321.87 5.69% 283,432.19
3 years above 21,489,762.05 49.46% 8,264,461.52 22,440,115.13 45.03% 8,341,741.13
3 to 4 years 17,896,646.10 41.19% 5,368,993.83 19,530,564.28 39.19% 5,859,169.28
4 to 5 years 1,027,697.10 2.37% 411,078.84 711,632.00 1.43% 284,653.00
5 years or
2,565,418.85 5.9% 2,484,388.85 2,197,918.85 4.41% 2,197,918.85
above
Total 43,446,227.07 -- 8,401,050.67 49,831,329.54 -- 8,625,173.32
(2) Current payback or return of receivables
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
During this period, no written-off or written off has been recovered in other receivables
(4) Accounts receivable due from shareholder who has more than 5% (including 5 %) voting shares of the
Company at year-end
The current held no more than 5% (including 5%) voting shares shareholders outstanding.
(5) Large amount of other receivables nature or content
Name of the debtors Amount Other receivables nature or content
Beijing Picom Telecommunications
28,912,122.71 Receivables and payables
Equipment Ltd
Yuhua Peoples’ Government Nanning
16,000,000.00 Receivables and payables
Office
Total 44,912,122.71 ——
(6) Top 5 debtors of other receivables
Proportion of
Relationship with the
Name of debtors Amount Aging total amount
Company
(%)
Beijing Picom Telecommunications More than
Subsidiary 28,912,122.71 28.90
Equipment Ltd 6 years
175
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Proportion of
Relationship with the
Name of debtors Amount Aging total amount
Company
(%)
Yuhua Peoples’ Government 3 to 4
Non –related party 16,000,000.00 16.00
Nanning Office years
Within 1
Nanjing Putian Telecommunication 689,652.33 0.69
Subsidiary year
Technology Co., Ltd
5,941,907.03 1 to 2 year 5.94
Putian Telecommunications (Hong 4 to 5
Subsidiary 4,085,166.33 4.08
Kong) Co., Ltd. years
Within 1
Nanjing Putian Information 620,892.71 0.62
Subsidiary year
Technology Company Ltd.
648,320.12 1 to 2 year 0.65
Total —— 56,898,061.23 —— 56.88
(7) Other receivables from related parties
Relationship with the Proportion of
Name of debtors Amount
Company total amount (%)
Beijing Picom Telecommunications
Subsidiary 28,912,122.71 28.90
Equipment Ltd
Nanjing Putian Telecommunication
Subsidiary 6,631,559.36 6.63
Technology Co., LTD
Putian Telecommunications (Hong Kong)
Subsidiary 4,085,166.33 4.08
Co., Ltd.
Nanjing Putian Information Technology
Subsidiary 1,269,212.83 1.27
Company Ltd.
Nanjing Putian Telecommunication Controlled by the same
102,955.98 0.10
Technology Industry Park Co., Ltd. parent company
Nanjing Mennekes Electric Appliances
Subsidiary 87,885.33 0.09
Co., Ltd.
Total 41,088,902.54 41.07
3. Long-term equity investments
(1) List of Information of Long-term Equity Investment
176
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Share
Voting
holdin
right
g
proport
percent
ion of
age of
the
Book balance at Book balance at the
Invested Accountin Initial cost of Compa
the end of 31 Movement the end of 31 Compa
units g Method investment ny
December 2012 December 2012 ny
among
among
investe
investe
d
d
units)
units)
(%))
(%)
Nanjing Southern
Cost
Telecommunication 33,175,148.00 33,175,148.00 33,175,148.00 98.24 98.24
Method
s Company Limited
Nanjing Putian
Cost
Telege Intelligent 3,320,003.45 3,320,003.45 3,320,003.45 45.77 45.77
Method
Building Ltd.
Nanjing Putian
Changle
Cost
Telecommunication 2,610,457.00 2,610,457.00 2,610,457.00 50.70 50.70
Method
s Equipment Co.,
Ltd.
Nanjing Bada
Cost
Telecommunication 5,610,000.00 5,610,000.00 5,610,000.00 60.00 60.00
Method
s Co., Ltd
Nanjing Putian
Wongshi Cost
40,997,683.00 40,997,683.00 40,997,683.00 99.42 99.42
Telecommunication Method
s Co., Ltd.
Nanjing Putian
Cost
Network Company 9,146,455.13 7,741,140.41 7,741,140.41 78.00 78.00
Method
Ltd.
Putian
Telecommunication Cost
1,910,520.00 1,910,520.00 1,910,520.00 90.00 90.00
s (Hong Kong) Co., Method
Ltd.
Nanjing Putian
Cost
13,860,000.00 13,860,000.00 13,860,000.00 99.98 99.98
Information
Method
Technology
177
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Share
Voting
holdin
right
g
proport
percent
ion of
age of
the
Book balance at Book balance at the
Invested Accountin Initial cost of Compa
the end of 31 Movement the end of 31 Compa
units g Method investment ny
December 2012 December 2012 ny
among
among
investe
investe
d
d
units)
units)
(%))
(%)
Company Ltd.
Nanjing Putian
Telecommunication Cost
1,294,510.00 1,294,510.00 1,294,510.00 70.00 70.00
Technology Co., Method
Ltd
Beijing Picom
Cost
Telecommunication 1,854,910.00 1,854,910.00 1,854,910.00 51.00 51.00
Method
s Equipment Ltd
Nanjing Yahua
Cost
Galvanization 420,915.00 420,915.00 420,915.00 10.00 10.00
Method
Factory
Hangzhou
Cost
Swanking Electric 321,038.00 321,038.00 321,038.00 2.26 2.26
Method
Appliance
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 2,759,925.47 477,145.68 3,237,071.15 40.00 40.00
and Electric Method
Company Ltd
Nanjing Putian
Zhongyou Equity
300,000.00 216,145.33 216,145.33 30.00 30.00
Telecommunication Method
Co., Ltd.
Nanjing Putian Equity
167,548,141.29 168,859,901.16 220,448.93 169,080,350.09 49.64 49.64
Telecommunication Method
178
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Share
Voting
holdin
right
g
proport
percent
ion of
age of
the
Book balance at Book balance at the
Invested Accountin Initial cost of Compa
the end of 31 Movement the end of 31 Compa
units g Method investment ny
December 2012 December 2012 ny
among
among
investe
investe
d
d
units)
units)
(%))
(%)
Technology
Industry Park 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 Cost
- 3,113,727.00 3,113,727.00 17.79 17.79
Bio-Tech Co., Ltd. Method
Nanjing Prachanda
Live Optical Equity 13,544,400.00 15,711,240.73 2,440,073.92 18,151,314.65 50.00 50.00
Network Co., Ltd Method
Total 334,861,688.87 376,330,119.77 3,137,668.53 379,467,788.30 —— ——
(Continued)
Impairment provision
Invested Cash dividends during
Impairment provision withdrawn during the
units the period
period
Nanjing Southern Telecommunications
Company Limited
Nanjing Putian Telege Intelligent
Building Ltd.
Nanjing Putian Changle
Telecommunications Equipment Co.,
Ltd.
Nanjing Bada Telecommunications
Co., Ltd
Nanjing Putian Wongshi
Telecommunications Co., Ltd.
179
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Impairment provision
Invested Cash dividends during
Impairment provision withdrawn during the
units the period
period
Nanjing Putian Network Company
Ltd.
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 High Technology
Industry 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. Operating revenues and costs
(1) Operating revenues
Item As of 30 June 2013 As of 30 June 2012
Main operating revenue 713,341,159.34 879,294,779.90
Other operating revenue 12,273,902.91 14,741,469.83
180
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 As of 30 June 2012
Total 725,615,062.25 894,036,249.73
Operating cost 655,279,644.09 818,400,146.13
(2) Main Business (In terms of industry)
As of 30 June 2013 As of 31 December 2012
Item Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Communications equipment
713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
manufacturing industry
Total 713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
(3) Main Business (In terms of different products)
As of 30 June 2013 As of 31 December 2012
Item Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Communication products 713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
Total 713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
(4) Main Business (In terms of different regions)
As of 30 June 2013 As of 31 December 2012
Item Main operating Main operating
Main operating cost Main operating cost
revenue revenue
Domestic market 713,189,349.68 644,657,596.57 876,868,985.63 803,591,754.40
Oversea market 151,809.66 104,012.01 2,425,794.27 2,070,766.34
Total 713,341,159.34 644,761,608.58 879,294,779.90 805,662,520.74
(5) The amount of operating revenues received from the top 5 customers this year
Proportion taking in total
Item operating revenues operating income of the
Company (%)
China Telecom Co., Ltd 376,075,240.58 51.83
China Mobile Co., Ltd 131,521,666.66 18.13
China United Network Co., Ltd 53,048,666.22 7.31
Nanjing Hehao Communication Technology Co., 22,725,524.66 3.13
181
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Proportion taking in total
Item operating revenues operating income of the
Company (%)
Ltd.
China Comservice Fujian Logistics Co. 14,602,650.80 2.01
Total 597,973,748.92 82.41
5. Investment income
(1) Details of Investment Income
Item As of 30 June 2013 As of 30 June 2012
Long-term equity investment income by cost
4,576,700.00
method
Long-term equity investment income by equity
-1,862,331.47 1,448,523.39
method
Total -1,862,331.47 6,025,223.39
(2) Long-term equity investment income by cost method
Investee As of 30 June As of 30 June Reasons for movement
2013 2012
Nanjing Mennekes Electric
Appliances Co., Ltd. According to the cost method
Nanjing Putian Telege Intelligent According to the company’s
4,576,700.00
Building Ltd. uniform distribution police
Nanjing Putian Changle
Telecommunications Equipment Business performance
Co., Ltd. fluctuations
Nanjing Yuhua Galvanization Business performance
Factory fluctuations
Total 4,576,700.00
(3) Long-term equity investment income by equity method
Investee As of 30 June 2013 As of 30 June 2012 Reasons for movement
Nanjing Prachanda Live Optical
-2,559,926.08 1,249,537.60
Network Co., Ltd Business fluctuations
Nanjing Putian Datang Information
477,145.68 134,863.31
and Electric Company Ltd. Business fluctuations
182
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Investee As of 30 June 2013 As of 30 June 2012 Reasons for movement
Nanjing Putian Zhongyou
-17,969.72
Telecommunication Co., Ltd. Business fluctuations
Nanjing Putian High Technology
220,448.93 82,092.20
Industry Co., Ltd Business fluctuations
Total -1,862,331.47 1,448,523.39
Explanation of investment income
None of significant limitation of the repatriation of investment income
6. Supplementary information about consolidated statement of cash flows
Item As of 30 June 2013 As of 30 June 2012
1、Adjustment of net profit into operation activity cash flow：
Net profit -13,109,556.68 -4,605,755.52
Add: provision for depreciation of assets 34,764.05 1,008,607.19
Depreciation of fixed assets, consumption of oil gas assets
2,420,609.59 5,346,677.97
and depreciation of productive biological assets
Amortization of intangible assets 423,561.03 448,236.55
Amortization of long-term prepayments
Loss from disposal of fixed assets, intangible assets and other
-69,124.11
long term assets (gain 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 “-”) 11,240,332.77 14,652,151.91
Investment loss (gain is listed with “-”) 1,862,331.47 -6,025,223.39
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 “-”) -4,517,187.53 -21,636,091.82
Decrease of operational accounts receivable (increase is listed
-114,949,312.27 -55,466,493.18
with “-”)
Increase of operational accounts payable (decrease is listed
25,448,393.51 25,843,528.28
with “-”)
183
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 As of 30 June 2012
Others
Net cash flow arising from operation activities -91,146,064.06 -40,503,486.12
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 158,755,370.14 203,938,223.14
Less: Balance of cash at period-begin 267,226,515.29 193,897,034.53
Add: Balance of cash equivalent at period-end
Less: Balance of cash equivalent at period-beginning
Net increase in cash and cash equivalent -108,471,145.15 10,041,188.61
XIV. Supplementary Information
1. Non-recurring gains and losses of current year (Profit: +, loss: -)
Calculation of non-recurring gains and losses below, in accordance with No. 1, Information Disclosure
Interpretative Bulletin for public offering of securities of enterprises ,namely non-recurring gains and
losses(version of 2008),[ China Securities Regulatory Commission Announcement [2008] No. 43] issued by China
securities regulatory commission.
Item As of 30 June 2013 Note
1．Gains and losses from disposal of non-current assets, including reversal of
36,352.80
provision for impairment before
2．Tax refund and relief without authorized approval or formal approval document
or accident
3．Government subsidy recorded in current gains and losses,(except the fixed or
quantitative government subsidy closely related to the enterprise businesses and 1,793,770.76
according to the national uniform standard)
4．Capital occupancy expense, collected from non-financial enterprises and
recorded in current gains and losses
5．Income from the exceeding part between investment cost of the Company
paid for obtaining subsidiaries, associates and joint-ventures and recognizable net
assets fair value attributable to the Company when acquiring the investment
6．Gains and losses from exchange of non-monetary assets
184
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Item As of 30 June 2013 Note
7．Gains and losses from assets under trusted investment or management
8．Various provision for impairment of assets due to act of God, such as natural
disaster
9．Gains and losses from debt restructuring -30,865.75
10．Enterprise reorganization expense, such as expense for placement of workers
or expense for integration charges etc.
11．Gains and losses of the part arising from transaction in which price is unfair
and exceeding fair value
12．Current net gains and losses occurred from period-begin to combination
day by subsidiaries resulting from business combination under common control
13．Gains and losses arising from contingent proceedings irrelevant to normal
operation of the Company
14．Except for effective hedge business relevant to normal operation of the
Company, gains and losses arising from fair value change of tradable financial
assets and tradable financial liabilities, and investment income from disposal of
tradable financial assets, tradable financial liabilities and financial assets available
for sale
15．Reversal of provision of impairment of account receivable which are
treated with separate depreciation test
16．Gains and losses obtained from external trusted loans
17．Gains and losses arising from change of fair value of investment real estate
whose follow-up measurement are conducted according to fair value pattern
18．Affect on current gains and losses after an one-time adjustment according
to requirements of laws and regulations regarding to taxation and accounting
19．Trust fee obtained from trust operation
20．Other non-operating income and expenditure except for the aforementioned
-471,706.10
ones
21．Other gains and losses items complying with definition for non-recurring
gains and loses
22．Affect on minority equity(after taxation)
338,026.67
23．Affect on income tax
242,723.61
Total 746,801.43
185
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
2. Return on equity and earnings per share
Earnings per share
Weighted average Diluted earnings per
Profits of the reporting period Basic earnings per
return on equity（%） share
share
Net profit attributable to shareholders of
-0.72 -0.013 -0.013
parent company
Net profit attributable to shareholders of
parent company
-0.92 -0.016 -0.016
after deduction of non-current gains and
losses
3. 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
Proportion
As of 30 June As of 31 Amount of
of Note
2013 December 2012 movement
Item movement
Monetary funds 300,748,252.81 452,015,249.64 -151,266,996.83 -33.47% Note1
Notes payable 60,000,000.00 107,000,000.00 -47,000,000.00 -43.93% Note2
(2) Item of Income Statement
Proportion
As of 30 June As of 31 Amount of
of Note
2013 December 2012 movement
Item movement
Investment income -1,883,203.49 1,462,045.66 -3,345,249.15 -228.81% Note2
Non-operating income 1,927,667.56 1,206,456.92 721,210.64 59.78% Note3
Note1：During the period was mainly due to reduced loan financing bills , correspondence margin decrease and
increase of payment;
Note2: Decrease the intensity of bill financing;
Note3：Nanjing Prachanda Live Optical Network Co., Ltd loss impact in the period;
Note4: More government grant income received in the period.
186
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2013
Section IX. Documents available for reference
(I)Financial statement of the Company with signature and seal from the person in charge of the Company, person
in charge of the accounting works and person in charge of accounting;
(II)Original text of all documents of the Company as well as manuscript of the announcement that disclosed on
website appointed by CSRC
Board of Directors of
Nanjing Putian Telecommunications Co., Ltd.
27 August 2013
187