HAINAN PEARL RIVER HOLDINGS CO., LTD.
THE FIRST QUARTERLY REPORT 2010
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and senior
executives of Hainan Pearl River Holdings Co., Ltd. (hereinafter referred to as “the Company”)
hereby guarantee that this report carries no false information, misleading statements or major
omissions, and will accept, individually and collectively, the responsibility for factuality, accuracy
and completeness of the information set forth herein.
1.2 The Financial Report of this first quarterly report has not been audited by a CPA firm.
1.3 Mr. Zheng Qing (Chairman of the Board and GM of the Company), Mr. Chen Binglian
(Standing Vice GM and Financial Principal of the Company) and Mr. Yang Daoliang (Manager of
the Financial Department) hereby confirm that the Financial Report enclosed in this quarterly report
is factual and complete.
§2. Company Profile
2.1 Main accounting data and financial indicators
Unit: (RMB) Yuan
31 Mar. 2010 31 Dec. 2009 Increase/decrease (%)
Total assets (Yuan) 1,773,251,246.27 2,033,695,297.92 -12.81
Owners’ equity attributable to
shareholders of listed company (Yuan)
588,210,754.68 653,104,424.27 -9.94
Share capital (share) 426,745,404 426,745,404.00 0.00
Net assets per share attributable to
shareholders of listed company
(Yuan/share)
1.38 1.53 -9.80
Jan.-Mar. 2010 Jan.-Mar. 2009 Increase/decrease (%)
Total operation income (Yuan) 192,179,933.98 24,899,406.13 671.83
Net profit attributable to shareholders
of listed company (Yuan) -204,728.92
-14,067,592.22 98.54
Net cash flows arising from operating
activities (Yuan) 33,253,503.48
6,204,999.78 435.91
Net cash flows per share arising from
operating activities (Yuan/share) 0.08
0.01 700.00
Basic earnings per share (Yuan/share) 0.00 -0.03 100.00
Diluted earnings per share (Yuan/share) 0.00 -0.03 100.00
Weighted average ROE (%) -0.03 -0.03 Up by 1.67%
Weighted average ROE after deducting
non-recurring gains and losses (%)
-0.81 -0.81 Up by 0.90%
Items of non-recurring gains and losses
Amount from year-begin to
period-end
Gains and losses from disposal of non-current assets, including offset amount of asset impairment reserves
already withdrawn
1,685,050.08
Capital occupation fees received from non-financial enterprises recorded into current gains and losses 3,400,895.21
Other non-business incomes and expenses except for items above -20,000.00
Less: Effect on income tax
Less: Effect on minority interests 2,618.81
Total 5,063,326.482
2.2 Total number of shareholders at period-end and shareholding of top ten shareholders
holding shares not subject to trading moratorium
Unit: Share
Total number of shareholders at period-end 49,912
Tradable shares held by top ten shareholders holding shares not subject to trading moratorium
Name of shareholder (full name)
Number of tradable shares not subject to
trading moratorium held at period-end
Type of share
Beijing Wanfa Real Estate Development Co., Ltd. 112,180,478 RMB ordinary shares
Hebei Securities Co., Ltd. 2,176,067 RMB ordinary shares
Zhang Xiaoxia 1,949,250 Domestically listed foreign shares
Wang Shuxia 1,947,641 RMB ordinary shares
Yang Jianzhong 1,600,000 RMB ordinary shares
Rong Hongji 1,594,700 RMB ordinary shares
Chen Yunxuan 1,550,822 RMB ordinary shares
Guo Hetian 1,500,000 RMB ordinary shares
Guangzhou Pearl River Industrial Development
Co., Ltd.
1,150,000 RMB ordinary shares
Pan Qi 1,061,565 Domestically listed foreign shares
§3. Significant Events
3.1 Major changes in main accounting statement items and financial indicators, as well as
reasons for such changes
√Applicable □Inapplicable
Items
As at 31 Mar.
2010
As at 31 Dec.
2009
Increase/decrease
(%) Main reasons for changes
Monetary funds
155,484,739 291,787,133 -46.71
Payment for investments in debt securities
increased and some bank loans were repaid.
Prepayment
25,033,218 44,285,761 -43.47
Prepayment for construction of the Wuhan
Project Phase Ⅱ decreased due to
settlement.
Other receivables 322,477,557 189,594,736 70.09 Increase in investments in debt securities
Inventory
356,558,351 538,999,749 -33.85
Commercial houses of the Wuhan Project
Phase Ⅱ were sold and transferred.
Long-term equity
investment 51,907,091 13,149,424 294.75
Increase in external long-term equity
investment
Accounts payable
18,744,984 70,793,362 -73.52
Payables for construction of the Wuhan
Project Phase Ⅱ were settled.
Taxes and fares payable
-7,693,049 -16,948,132 54.61
Due to sales of commercial houses of the
Wuhan Project Phase Ⅱ, original taxes and
fares paid in advance were transferred.
Non-current liabilities
due within one year 54,980,110 79,980,110 -31.26
Some bank loans were repaid.
Items
As of
Jan.-Mar.
2010
As of
Jan.-Mar.
2009
Increase/decrease
(%)
Main reasons for changes
Operating income
192,179,934 24,899,406 671.83
Sales income from the Wuhan Project Phase
Ⅱ was recognized.
Asset impairment loss
-3,782,347 -9,442 -39,958.75
Some original impairment reserves for the
Yanjiang First Road Project were
recovered.
Non-business income
1,710,014 103,878 1,546.18
Net income from disposing some fixed assets
such as houses and buildings
Net cash flows from
operating activities
33,253,503 6,205,000 435.91
Sales income from the Wuhai Project Phase
Ⅱ increased and the input amount for the
Yanjiang First Road was collected.
Net cash flows from
investing activities -121,005,633 -265,411 -45,491.79
Payment for investments in debt securities
increased.
Net cash flows from
financing activities -48,550,264 129,533 -37,581.00
Some bank loans were repaid.3
3.2 Explanation and analysis on progress of significant eve nts, as well as relevant influence and
solutions
□Applicable √Inapplicable
3.3 Implementation of commitments made by the Company, shareholders and actual controller
√Applicable □Inapplicable
Commitment Commitment maker Contents of commitment Execution
Commitment concerning share
reform Beijing Wanfa
The non-tradable shares held by
Beijing Wanfa shall not be listed for
trading in the stock exchange within at
least 36 months since those shares
become tradable in the A-stock
market.
The commitment has been
fulfilled.
Commitment concerning share
trading moratorium None None None
Commitment made in the
acquisition report or the report on
equity changes
None None None
Commitment made in the
significant asset reorganization None None None
Commitment made in share
issuance None None None
Other commitments (including
supplementary ones) None None None
3.4 Warnings of possible loss or large- margin change of the accumulated net profit made during the
period from the beginning of the year to the end of the next report period compared with the same
period of the last year according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities investment
□Applicable √Inapplicable
3.5.2 Researches, interviews and visits received in report period.
No field researches, phone calls or written inquiries were received from investors in the report
period.
3.5.3 Explanation on other significant events
□Applicable √Inapplicable
3.6 Investments in financial derivative products
□Applicable √Inapplicable
3.6.1 Positions of financial derivative products held at period-end
□Applicable √Inapplicable
HaiNan Pearl River Holdings Co., Ltd.
27 Apr. 20104
Balance Sheet
31 Mar. 2010
Prepared by HaiNan Pearl River Holdings Co., Ltd. Unit: RMB Yuan
Items Closing amount Opening amount
Consolidation The Company Consolidation The Company
Current assets
Cash at bank and on hand 155,484,738.72 73,641,503.21 291,787,132.78 161,760,970.47
Settlement fund reserve
Loans to other banks
Transaction financial assets
Notes receivable
Accounts receivable 3,798,137.29 1,045,082.61 2,645,699.47 1,014,754.61
Advances to suppliers 25,033,218.36 130,521.00 44,285,760.93
202,040.00
Premium receivables
Receivables from reinsurers
Reinsurance contract reserve receivables
Interest receivable
Dividends receivable 260,015.00 260,015.00 260,015.00 260,015.00
Other receivables 322,477,557 .46 308,471,228.34 189,594,736.47 219,693,993.49
Financial assets purchased under agreements to
resell
Inventories 356,558,350.85 55,981,788.41 538,999,748.54 84,392,446.86
Non-current assets due within one year
Other current assets
Total current assets 863,612,017.68 439,530,138.57 1,067,573,093.19 467,324,220.43
Non-current assets:
Loans and advance
Available-for-sale financial assets 542,972,500.00 542,972,500.00 631,417,500.00 631,417,500.00
Held-to-maturity investment
Long-term receivables
Long-term equity investments 51,907,091.13 257,268,976.62 13,149,424.41 238,511,309.90
Investment properties 20,562,487.56 20,783,662.44
Fixed assets 257,945,435.60 19,505,387.17 264,815,483.49 20,720,770.59
Construction in progress 3,105,000.00 2,510,000.00
Project material 606,206.60 606,206.60
Fixed assets disposal
Bearer biological asset
Oil and gas assets
Intangible assets 32,385,179.61 1,684,115.61 32,617,178.56 1,696,031.52
Development expense
Goodwill
Long-term prepaid expenses 155,328.09 222,749.23
Deferred tax assets
Other non -current ass ets
Total non -current assets 909,639,228.59 821,430,979.40 966,122,204.73 892,345,612.01
TOTAL ASSETS 1,773,251,246.27 1,260,961,117.97 2,033,695,297.92 1,359,669,832.44
Current liabilities :
Short -term borrowings 260,000,000.00 260,000,000.00 276,000,000.00 276,000,000.00
Borrowings from Central Bank
Deposits and due to banks and other financial
institutions
Borrowings from banks and other financial
institutions
Transaction financial liabilities
Notes payable
Accounts payable 18,744,983.89 3,846,793.62 70,793,361.64 4,135,235.24
Advances from customers 240,730,687.51 3 0 6 , 9 3 2 , 1 6 3 . 7 8
Financial assets sold under agreements to repurchase
Handling charges and commissions payable
Employee benefits payable 3,961,196.17 506,354.86 5,055,394.37 598,915.23
Taxes payable -7,693,048.51 -3,235,698.12 -16,948,131.65 -3,354,179.89
Interests payable 73,547,976.31 36,287,222.91 65,601,325.75 29,034,494.85
Dividends payable 3,213,302.88 3,213,302.88 3,213,302.88 3,213,302.88
Other payables 306,790,539.92 236,206,976.23 332,778,891.65 235,716,634.23
Due to reinsurers
Insurance contract reserve
Amount payable for acting trading securities
Amount payable for acting underwriting securities
Non-current liabilities due within one year 54,980,110.00
79,980,110.00
Other non -current liabilities
Total current liabilities 954,275,748.17 536,824,952.38 1,123,406,418.42 545,344,402.54
Non-current liabilities:
Long-term borrowings 105,000,000.00 110,000,000.00
Bonds payable
Long-term payables
Specific -purpose account payables
Accrued liabilities
Deferred income tax liabilities 112,301,875.00 112,301,875.00 134,413,125.00 134,413,125.00
Other non-current liabilities
Total non-current liabilities 217,301,875.00
112,301,875.00 244,413,125.00
134,413,125.00
TOTAL LIABILITIES 1,171,577,623.17 649,126,827.38 1,367,819,543.42 679,757,527.54
Owners' equity (or shareholders' equity):
Pain-in capital (or share capital) 426,745,404.00 426,745,404.00 426,745,404.00 426,745,404.00
Capital reserve 722,470,405.97 725,486,745.51 788,804,155.97 791,820,495.51
Less: Treasury stock
Surplus reserve 114,177,485.88 109,487,064 .39 114,177,485.88 109,487,064.39
General risk provision
Retained earnings -675,182,541.17 -649,884,923.31 -676,622,621.58 -648,140,659.00
Foreign exchange difference
Total owners' equity attributable to holding company 588,2 10,754.68 611,834,290.59 653,104,424.27 679,912,304.90
Minority interests 13,462,868.42 12,771,330.23
Total owners' equity (or shareholders' equity) 601,673,623.10 611,834,290.59 665,875,754.50 679,912,304.90
TOTAL LIABILITIES AND OWNERS’ EQUITY (OR
SHAREHOLDERS' EQUITY) 1,773,251,246.27 1,260,961,117.97 2,033,695,297.92 1,359,669,832.44
Legal Representative: Zheng Qing; CFO: Chen Binglian; Accounting Manager: Yang Daoliang5
Income Statement
31 Mar. 2010
Prepared by HaiNan Pearl River Holdings Co., Ltd. Unit: RMB Yuan
Jan.-Mar. 2010 Jan.-Mar. 2009
Items
Consolidation The Company Consolidation The Company
I. Total operating revenue 192,179,933.98 89,005.20 24,899,406.13 126,985.00
Including: Sales 192,179,933.98 89,005.20 24,899,406.13 126,985.00
Interest income
Premium income
Handling charges and commission income
II. Total operating cost 191,241,951.06 2,286,926.83 39,554,957.55 6,570,475.94
Including: Operating cost 157,540,842.50 33,189.49 18,140,479.93
Interest expenses
Handling charges and commission expenses
Surrender value
Claim expenses-net
Insurance contract reserve-net
Policy dividend payment
Amortized reinsurance expense
Tax and levies on operations 12,706,631.35 4,895.29 1,284,676.47 6,984.19
Selling expense 2,629,616.08 19,061.00 2,800,608.37 988.00
Administrative expenses 14,409,352.51 3,440,099.06 11,340,595.14 3,094,777.88
Financial expenses 7,737,855.12 4,196,504.90 5,998,039.20 3,482,241.04
Asset impairment losses -3,782,346.50 -5,406,822.91 -9,441.56 -14,515.17
Add: Income from change in fair value (“-” shows
loss)
Investment income (“-” shows loss) -145,793.72 -145,793.72
Including: share of results of
associates -145,793.72 -145,793.72
Exchange gain/(loss) (“-” shows
loss)
III. Operating profit (“-” shows loss) 792,189.20 -2,343,715.35 -14,655,551.42 -6,443,490.94
Add: Non-operating income 1,710,013.72 1,710,013.72 103,877.68
Less: Non-operating expenses 44,963.64 14,023.12 1,587.02
including: Loss on disposals of
non-current assets 24,963.64 14,023.12
IV. Total profit (“-” shows loss) 2,457,239.28 -647,724.75 -14,553,260.76 -6,443,490.94
Less: Income tax expenses 1,970,430.01 8,058.13
V. Net profit (“-” shows net loss) 486,809.27 -647,724.75 -14,561,318.89 -6,443,490.94
Attributable to owners of parent company -204,728.92 -14,067,592.22
Profit and loss of minority shareholders 691,538.19 -493,726.67
VI. Earning per share:
(1) Basic earnings per share (RMB/share) 0.00 -0.03
(2) Diluted earnings per share (RMB/share) 0.00 -0.03
VII. Other comprehensive income -64,688,940.67 -67,430,289.56 722,229,548.20 722,229,548.20
VIII. Total comprehensive income -64,202,131.40 -68,078,014.31 707,668,229.31 715,786,057.26
Attributable to: Equity holders of the
Company -64,893,669.59 708,161,955.98
Minority interest 691,538.19 -493,726.67
Legal Representative: Zheng Qing; CFO: Chen Binglian; Accounting Manager: Yang Daoliang6
Cash Flow Statement
31 Mar. 2010
Prepared by HaiNan Pearl River Holdings Co., Ltd. Unit: RMB Yuan
Jan.-Mar. 2010 Jan.-Mar. 2009
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating activities
Cash received from rendering of services 125,827,958.74 58,080.41 99,461,837.41 1,579,849.00
Net increase in customer bank deposits and due to banks and other financial
institutions
Net increase in borrowings from central bank
Net increase in borrowings from other financial institutions
Premium received from original insurance contracts
Net c ash received from reinsurance
Net increase in policy holder deposits and investment funds
Net increase in disposal of held -for-trading financial assets
Interest, handling charges and commission s received
Net increase in borrowings from banks and other financial institutions
Net increase in buy-back business
Taxes and fare s paid
Other cash received relating to operating activities 42,902,688.17 36,165,058.20 2,797,652.48 1,965,218.06
Sub-total of cash inflows 168,730,646.91 36,223,138.61 102,259,489.89 3,545,067.06
Cash paid for goods and services
54,007,448.14 225,927.07 64,910,004.04
312,804.31
Net increase in l oans and advances to customers
Net increase in deposits with central bank and other financial institutions
Original insurance contract c laims paid
Cash paid for interest, fees and commissions
Dividends paid to policyholders
Cash paid to and on behalf of employees 15,327,519.92 868,429.47 14,630,301.58 1,043,225.70
Payments of taxes and levies 6,584,875.54 496,485.45 9,882,161.43 210,999.31
Cash paid relating to other operating activities 59,557,299.83 7,545,150.00 6,632,023.06 7,768,258.43
Sub-total of cash outflows 135,477,143.43 9,135,991.99 96,054,490.11 9,335,287.75
Net cash flows from operating activities 33,253,503.48 27,087,146.62 6,204,999.78 -5,790,220.69
II. Cash flows from investing activities
Cash received from disposals of investments 5,000,000.00 5,000,000.00
Cash received from returns on investments
Net cash received from disposals of fixed assets and intangible assets 3,686,573.00 3,628,173.00
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investing activities
Sub-total of cash inflows 8,686,573.00 8,628,173.00
Cash paid to purchase fixed assets, intangible assets and other long-term assets 7,290,312.93 922,747.00 265,411.00 29,966.00
Cash paid for investments 107,000,000.00 107,000,000.00
Net increase in pledged loans
Net cash paid from obtaining subsidiaries and other business units
Cash paid relating to other investing activities
15,401,893.30
Sub-total of cash outflows 129,692,206.23 107,922,747.00 265,411.00 29,966.00
Net cash flows from investing activities -121,005,633.23 -99,294,574.00 -265,411.00 -29,966.00
III. Cash flows from financing activities
Cash received from absorbing investment
Including: Cash received by subsidiaries from increase in minority interests
Cash received from borrowings 6,500,000.00 6,500,000.00
Cash received from issuing debentures
Other cash received relating to financing activities
Sub-total of cash inflows 6,500,000.00 6,500,000.00
Cash repayments of borrowings 46,000,000.00 16,000,000.00 3,500,000.00
Cash payments for interest expenses and distribution of dividends or profits
2,550,264.31 -87,960.12 2,870,466.66
435,486.03
Including: Cash payments for dividends or profits to mi nority shareholders of
subsidiaries
Cash payments relating to other financing activities
Sub-total of cash outflows
48,550,264.31 15,912,039.88 6,370,466.66
435,486.03
Net cash flows from financing activities
-48,550,264.31 -15,912,039.88 129,533.34
6,064,513.97
IV. Effect of foreign exchange rate changes on cash and cash equivalents
V. Net (decrease)/increase in cash and cash equivalents -136,302,394.06 -88,119,467.26 6,069,122.12 244,327.28
Add: Cas h and cash equivalents at beginning of year 291,787,132.78 161,760,970.47 36,655,536.17 4,869,795.27
VI. Cash and cash equivalent at end of year 155,484,738.72 73,641,503.21 42,724,658.29 5,114,122.55
Legal Representative: Zheng Qing; CFO: Chen Binglian; Accounting Manager: Yang Daoliang
