Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
HAINAN PEARL RIVER HOLDINGS CO., LTD.
ABSTRACT OF THE SEMI-ANNUAL REPORT 2012
I. Important Notes
The Board of Directors, the Supervisory Committee as well as directors, supervisors and senior management staff
of HaiNan Pearl River Holdings Co., Ltd. (hereinafter referred to as “the Company” warrant that this report does
not contain any false information, misleading statements or material omissions and they will assume individual
and/or joint responsibility for the factuality, accuracy and completeness of all contents set forth herein.
All directors were present at the board session for reviewing this report.
Mr. Zheng Qing, company principal, Mr. Chen Binglian, head of the accounting work, and Mr. Yang Daoliang,
head of the accounting department (person-in-charge of accounting) hereby declare that they guarantee the
factuality and completeness of the financial report carried in the semi-annual report.
English Translation for Reference Only. Should there be any discrepancy between the two versions, the Chinese
version shall prevail.
II. Company Profile
（I）Basic information
A-share abbreviation STZJ
A-share code 000505
Stock exchange listed with Shenzhen Stock Exchange
Company Secretary Securities Affairs Representative
Name Yu Cuihong
29/F, Royal Empire Building, Pearl River
Contact address Plaza, Binhai Avenue, Haikou, Hainan
Tel. 0898— 68581888, 68581199 ext.
Fax 0898— 68581026
hnpearlriver@21cn.net
E-mail
（II）Financial highlights
1. Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
? Yes v No
Unit: RMB Yuan
Increase/decrease
30 Jun. 2012 31 Dec. 2011 Notes
(%)
1
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Total assets 1,419,110,691.00 1,311,949,739.44 8.17
Owners’ equity attributable to 387,301,911.35 373,004,748.20 3.83 Attributable to owners of the
shareholders of the Company Company
Share capital 426,745,404.00 426,745,404.00 0.00
Net assets per share attributable to 0.9076 0.8741 3.83 4 digits after the decimal point
shareholders of the Company
(RMB Yuan/share)
Jan.-Jun. 2012 Jan.-Jun. 2011 Increase/decrease (%)
Gross operating revenues 108,341,956.20 144,292,773.73 -24.92
Operating profit -35,251,504.31 -8,992,867.70 -291.99
Total profit -35,304,968.75 -8,630,152.22 -309.09
Net profit attributable to -37,734,798.44 -15,041,866.11 -150.87 Attributable to owners of the
shareholders of the Company Company
Net profit attributable to -59,037,643.78 -35,013,277.56 -68.62
shareholders of the Company after
deducting non-recurring gains and
losses
Basic EPS (RMB Yuan/share) -0.0884 -0.0352 -151.14 4 digits after the decimal point
Diluted EPS (RMB Yuan/share) -0.0884 -0.0352 -151.14 4 digits after the decimal point
Weighted average ROE (%) -9.93% -3.05% -6.88%-6.88%
Net cash flow from operating -35,592,424.56 -27,380,569.51 -29.99
activities
Net cash flow per share from -0.0834 -0.0642 -29.91
operating activities (RMB
Yuan/share)
Notes to major accounting data and financial indexes before the end of the reporting period (Please give notes if
there is any retrospective adjustment):
2. Items of non-recurring gains and losses
vApplicable ? Inapplicable
Items Jan.-Jun. 2012 (RMB Yuan) Notes
Gains and losses on disposal of non-current assets 60,773.50
Tax rebate, reduction or exemption due to un-authorized
approval or the lack of formal approval documents
Government grants recognized in the current year, except
for those acquired in the ordinary course of business or
granted at certain quotas or amounts according to the
country’ unified standards
Capital occupation fees received from non-financial
2,829,976.10
enterprises that are included in current gains and losses
Gains generated when the investment costs of the
Company’ acquiring subsidiaries, associates and joint
ventures are less than the fair value of identifiable net assets
in the investees attributable to the Company in the
acquisition of the investments
Exchange gains and losses of non-monetary assets
Gains and losses through entrusting others to invest or
manage assets
Various asset impairment provisions due to acts of God such
as natural disasters
Gains and losses on debt restructuring
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Enterprise reorganization expenses, such as expenses on
employee settlement and integration
Gains and losses on the parts exceeding the fair value when
prices of transactions become unfair
Net current gains and losses from the period-begin to the
combination date of subsidiaries due to business
combinations under the same control
Gains and losses on contingent matters which are irrelevant
to the normal operation of the Company
Gains and losses on fair value changes of transactional
financial assets and liabilities, and investment gains on
disposal of transactional financial assets and liabilities and 18,542,755.18
available-for-sale financial assets, except for the effective
hedging business related to the Company’ normal operation
Reversal of impairment provisions for accounts receivable
which are separately tested for impairment signs
Gains and losses on entrustment loans from external parties
Gains and losses on fair value changes of investing
properties for which the fair value method is adopted for
subsequent measurement
Current gain and loss effect due to a just-for-once
adjustment to current gains and losses according to
requirements of taxation and accounting laws and
regulations
Custodian fee income from entrusted operations with the
Company
Other non-operating incomes and expenses besides the
-114,237.94
items above
Other gain and loss items that meet the definition of
non-recurring gains and losses
Minority interests effects -6,341.50
Income tax effects -10,080.06
Total 21,302,845.34 --
3. Net profit and net asset differences between financial reports disclosed according to the international and
Chinese accounting standards respectively
vApplicable ? Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of the Owners’equity attributable to shareholders of
Company the Company
Reporting period Same period of last year Closing amount Opening amount
As per Chinese accounting
-37,734,798.44 -15,041,866.11 387,301,911.35 373,004,748.20
standards
Items and amounts adjusted according to international accounting standards:
-Adjustment to amortization
-1,337,000.00 -1,337,000.00
of land use rights
As per international
-37,734,798.00 -15,041,866.00 385,964,911.00 371,667,748.00
accounting standards
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
4. Net profit and net asset differences between financial reports disclosed according to the overseas and
Chinese accounting standards respectively
vApplicable ? Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of the Owners’equity attributable to shareholders of
Company the Company
Reporting period Same period of last year Closing amount Opening amount
As per Chinese accounting
-37,734,798.44 -15,041,866.11 387,301,911.35 373,004,748.20
standards
Items and amounts adjusted according to overseas accounting standards:
-Adjustment to amortization
-1,337,000.00 -1,337,000.00
of land use rights
As per international
-37,734,798.00 -15,041,866.00 385,964,911.00 371,667,748.00
accounting standards
III. Changes in Share Capital and Particulars about Shareholders
（I）Changes in share capital
? Applicable vInapplicable
（II）Shares held by the top ten holders of tradable shares/shares not subject to trading
moratorium
Shares held by the top ten shareholders and the top ten shareholders holding tradable shares
Total number of shareholders 42,968
Particulars about shares held by the top ten shareholders
Sharehold Pledged or frozen shares
Number of
Name of shareholder (full Nature of ing Total shares held at
non-tradable Number of
name) shareholder percentag the period-end shares held Status of shares shares
e (%)
Beijing Wanfa Real Estate State-owned 26.36% 112,479,478 0
Development Co., Ltd. corporation
Xiao Gengning Domestic natural 0.74% 3,145,022 0
person
Chen Yunxuan Domestic natural 0.67% 2,859,302 0
person
Zhang Xiaoxia Domestic natural 0.46% 1,949,250 0
person
Zhang Chuntian Domestic natural 0.36% 1,540,000 0
person
Ou Lei Domestic natural 0.35% 1,500,000 0
person
Zhang Huisheng Domestic natural 0.33% 1,400,000 0
person
Domestic
Nanhua Finance Co., Ltd. non-state-owned 0.3% 1,299,500 1,299,500
corporation
Domestic natural
Huang Yueling 0.28% 1,184,900 0
person
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Pearl River Enterprise State-owned 0.27% 1,150,000 0
Group corporation
Particulars about shares held by the top ten shareholders holding tradable shares
Number of tradable shares Type and number of shares
Name of shareholder
held Type Number
Explanation on associated relationship or/and
persons acting in concert among the
above-mentioned shareholders
（III）Change of the controlling shareholder and the actual controller
? Applicable vInapplicable
IV. Particulars about Directors, Supervisors and Senior Management
（I）Shareholding changes of directors, supervisors and senior management
Number of Number of Of which: Number of
Number of shares shares Number of number of stock options Reason for
Name Office title shares held at increased in decreased in shares held at
restricted held at change
period-begin reporting reporting period-end
shares held period-end
period period
Chairman,
Zheng Qing 34,175 0 0 34,175 34,175 34,175 N/A
GM
Vice
Zhang Jian 0 0 0 0 0 0 N/A
Chairman
Peng Shuyin Director 0 0 0 0 0 0 N/A
Shi Yonghui Director 0 0 0 0 0 0 N/A
Liu Wenjie Director 0 0 0 0 0 0 N/A
Chen Wenbin Director 0 0 0 0 0 0 N/A
Li Independent
0 0 0 0 0 0 N/A
Guangzhong Director
Wang Independent
0 0 0 0 0 0 N/A
Zhigang Director
Huang Independent
0 0 0 0 0 0 N/A
Weimin Director
Chairman of
Wu Xiaojing the 0 0 0 0 0 0 N/A
Supervisory
Committee
She Jianhui Supervisor 0 0 0 0 0 0 N/A
Wang Geping Supervisor 0 0 0 0 0 0 N/A
Chen Executing
0 0 0 0 0 0 N/A
Binglian Vice GM
Vice GM,
Yu Cuihong Company 0 0 0 0 0 0 N/A
Secretary
Yang Vice GM 0 0 0 0 0 0 N/A
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Daoliang
Wu Jianshe Vice GM 0 0 0 0 0 0 N/A
V. Report of the Board of Directors
（I）Main business lines classified by industries and products
Unit: RMB Yuan
Main business lines classified by industries
Increase/decrease Increase/decrease Increase/decrease
of operating of operating cost of gross profit
Operating Gross profit rate revenue rate compared
Industry Operating cost compared with
revenue (%) compared with with the same
the same period
the same period period last year
last year (%)
last year (%) (%)
Sale of real estate 22,880,211.00 11,265,104.81 50.76% -66.4% -64.7% -2.38%
Property
management and 52,229,168.34 47,199,383.70 9.63% 9.6% 10.88% -1.04%
service
Travel and hotel
31,628,808.66 15,626,961.42 50.59% 15.35% 36.22% -7.58%
services
Main business lines classified by products
Increase/decrease Increase/decrease Increase/decrease
of operating of operating cost of gross profit
Operating Gross profit rate revenue rate compared
Product Operating cost compared with
revenue (%) compared with the same period with the same
the same period period last year
last year (%)
last year (%) (%)
Explanation to the reasons for any significant year-on-year change of the gross profit rate:
N/A
（II）Main business lines classified by regions
Unit: RMB Yuan
Increase/decrease compared with the same
Region Operating revenue
period last year (%)
Hainan 71,616,099.00 4.71%
Hubei 23,204,485.00 -66.16%
Shanghai 1,262,255.00 100%
Heilongjiang 10,655,349.00 73.31%
Beijing 0.00 -100%
（III）Reasons for any significant change in main business and its structure
? Applicable vInapplicable
（IV）Reasons of significant changes in profitability of main business (gross profit rate)
compared with that in the last year
? Applicable vInapplicable
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
（V）Analysis on reasons of significant changes in profit breakdown compared with the last
year
vApplicable ? Inapplicable
The profit for the reporting period mainly came from the settlement income from the Hubei real estate project and
the investment income from transferring 1.871 million shares of Southwest Securities, and the profit for the same
period of last year mainly came from the settlement income from the Hubei real estate project and the capital
occupation fee income.
（VI）Particulars about utilization of the raised funds
1. Utilization of the raised funds
? Applicable vInapplicable
2. Change of projects invested with raised funds
? Applicable vInapplicable
（VII）Revision of the Board of Directors’business plan for the second half of the year
? Applicable vInapplicable
（VIII）Business performance estimate for Jan. -Sept. 2012
Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the period
from the beginning of the year to the end of the next reporting period compared with the same period of last year,
as well as the reasons
? Applicable vInapplicable
（IX）Explanation of the Board of Directors on “Non-standard Auditing Report” issued by
the CPA firm for the reporting period
? Applicable vInapplicable
（X）Explanation of the Board of Directors on changes and solutions of the issues involved in
the “Non-standard Auditing Report” issued by the CPA firm for last year
? Applicable vInapplicable
VI. Significant Events
（I）Purchase, sales and reorganization of assets
1. Purchase of assets
? Applicable vInapplicable
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Notes to purchase of assets:
2. Sale of assets
? Applicable vInapplicable
Notes to sale of assets:
3. Progress of these events after the publication of the assets reorganization report or public notices on the
purchases or sales of assets, as well as the influences of these events on the operation results and financial
status of the Company in this reporting period
? Applicable vInapplicable
（II）Guarantee events
? Applicable vInapplicable
（III）Non-operating credits and liabilities with related parties
Was there any non-operating credit or liability with any related party?
? Yes v No
（IV）Significant lawsuits and arbitrations
? Applicable vInapplicable
（V） Other significant events as well as analysis and explanations on their impact and
solutions
? Applicable vInapplicable
1. Securities investment
vApplicable ? Inapplicable
Proportion in
Initial Number of Closing the total Gain/loss in
Serial Variety of Code of Abbr. of investment shares held at carrying closing the reporting
No. securities securities securities amount the amount securities period (RMB
(RMB Yuan) period-end (RMB Yuan) investment Yuan)
amount (%)
150,000,000. 354,896,490. 52,031,961.5
1 Stock 600369 XNZQ 31,379,000 100%
00 00 9
Other securities investments held at the period-end 0.00 -- 0.00 0% 0.00
18,542,755.1
Gain/loss on selling securities in the reporting period -- -- -- --
8
150,000,000. 354,896,490.
Total -- 100%
00 00
Notes to securities investment:
The Proposal on Authorizing the Chairman to Deal with Shares of Southwest Securities Held by the Company in
Proper Timing was reviewed and approved unanimously at the 20th Session of the 6th Board of Directors on 13 Jun.
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
2012 and later approved upon voting at the 1st Special Shareholders’General Meeting for 2012. In order to
increase the utilization efficiency of the Company’ assets, the Board of Directors agreed its chairman to make
decisions about the shares of Southwest Securities held by the Company (timing, number and method about
dealing with the shares) according to the Company’ development strategy, the securities market situation and the
Company’ operating and financial status.
On 28 Jun. 2012, the Company sold 919,400 such shares via the secondary stock market, with the average trading
price being RMB 11.57 per share.
On 29 Jun. 2012, the Company sold 951,600 such shares via the secondary stock market, with the average trading
price being RMB 11.34 per share.
2. Holding equity of other listed companies
? Applicable vInapplicable
Notes to holding equity of other listed companies:
3. Capital occupation during the reporting period and debt-clearing progress
? Applicable vInapplicable
The accountability plan put forward by the Board of Directors when the Company had not completed collecting
the capital occupied for non-operating purposes by the end of the reporting period
? Applicable vInapplicable
4. Fulfillment of commitments
Commitments made by the Company, its directors, supervisors, senior management, shareholders holding more
than 5% shares of the Company, actual controller or any other relevant party in this reporting period, or such
commitments carried down into this reporting period
? Applicable vInapplicable
5. Pre-plan of the Board of Directors for profit distribution or turning capital reserves into share capital
? Applicable vInapplicable
6. Items of other comprehensive income
Unit: RMB Yuan
Items Jan.-Jun. 2012 Jan.-Jun. 2011
1. Profits/(losses) from available-for-sale financial assets 83,946,040.00 7,980,000.00
Less: Effects on income tax generating from available-for-sale
20,986,510.00 1,995,000.00
financial assets
Net amount transferred into profit and loss in the current period that
10,927,568.41
recognized into other comprehensive income in prior period
Subtotal 52,031,961.59 5,985,000.00
2. Interests in the investee entities’other comprehensive income as per
equity method
Less: Effects on income tax generating from the interests in the
investee entities’other comprehensive income as per equity method
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
3. Profits/(losses) from cash flow hedging instrument
Less: Effects on income tax generating from cash flow hedging
instrument
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
The adjustment value that is the converted initial recognition amount of
arbitrage project
Subtotal
4. Converted amount of foreign currency financial statements
Less: Net value of disposal of oversea operations that recognized into
current profit and loss
Subtotal
5. Other
Less: Effects on income tax generating from the others that included
into other comprehensive income
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
Total 52,031,961.59 5,985,000.00
（VI）Particulars about researches, visits and interviews received in this reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided by the
Company
VII. Financial Report
（I）Audit opinion
Has this interim report been audited?
? Yes v No
（II）Financial statements
Consolidated statements or not?
v Yes ? No
1. Consolidated balance sheet
Prepared by HaiNan Pearl River Holdings Co., Ltd.
Unit: RMB Yuan
Item Note 30 Jun. 2012 31 Dec. 2011
Current Assets:
Monetary funds 64,075,389.48 52,507,843.73
Settlement reserves
Intra-group lendings
Transactional financial assets 0.00 0.00
Notes receivable 0.00 0.00
Accounts receivable 10,524,260.83 7,047,354.39
Accounts paid in advance 152,107,124.73 76,803,784.89
Premiums receivable
10
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable 0.00 0.00
Dividend receivable 260,015.00 260,015.00
Other accounts receivable 252,922,380.41 305,101,592.12
Financial assets purchased under
agreements to resell
Inventories 107,822,162.83 118,087,721.51
Non-current assets due within 1
year
Other current assets
Total current assets 587,711,333.28 559,808,311.64
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 354,896,490.00 286,947,500.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 51,432,102.93 51,861,567.21
Investing property 25,892,076.58 26,736,246.75
Fixed assets 333,624,430.69 325,412,316.44
Construction in progress 20,799,397.88 17,949,172.88
Engineering materials 606,206.60 606,206.60
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 32,144,089.10 32,558,549.97
R&D expense
Goodwill
Long-term deferred expenses 12,004,563.94 10,069,867.95
Deferred income tax assets
Other non-current assets
Total of non-current assets 831,399,357.72 752,141,427.80
Total assets 1,419,110,691.00 1,311,949,739.44
Current liabilities:
Short-term borrowings 235,000,000.00 45,000,000.00
Borrowings from Central Bank
Customer bank deposits and due
to banks and other financial
institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable
Accounts payable 22,954,059.56 22,624,982.35
Accounts received in advance 8,979,806.60 19,556,674.90
Financial assets sold for
repurchase
Handling charges and
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
commissions payable
Employee’ compensation
6,561,503.66 6,909,929.01
payable
Tax payable 3,421,620.76 3,581,099.43
Interest payable 106,368,747.73 99,701,134.38
Dividend payable 3,213,302.88 3,213,302.88
Other accounts payable 359,928,370.27 349,335,603.33
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting
of securities
Non-current liabilities due within
12,000,000.00 232,000,000.00
1 year
Other current liabilities
Total current liabilities 758,427,411.46 781,922,726.28
Non-current liabilities:
Long-term borrowings 191,000,000.00 81,000,000.00
Bonds payable
Long-term payables
Specific payables
Projected liabilities
Deferred income tax liabilities 67,653,941.30 49,347,638.80
Other non-current liabilities
Total non-current liabilities 258,653,941.30 130,347,638.80
Total liabilities 1,017,081,352.76 912,270,365.08
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 426,745,404.00 426,745,404.00
Capital reserves 582,483,617.56 530,451,655.97
Less: Treasury stock
Specific reserves
Surplus reserves 109,487,064.39 109,487,064.39
Provisions for general risks
Retained profits -731,414,174.60 -693,679,376.16
Foreign exchange difference
Total equity attributable to owners
387,301,911.35 373,004,748.20
of the Company
Minority interests 14,727,426.89 26,674,626.16
Total owners’ (or shareholders’
402,029,338.24 399,679,374.36
equity
Total liabilities and owners’ (or
1,419,110,691.00 1,311,949,739.44
shareholders’ equity
Legal representative: Zheng Qing Person-in-charge of the accounting work: Chen Binglian
Chief of the accounting division: Yang Daoliang
12
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
2. Balance sheet of the Company
Unit: RMB Yuan
Item Note 30 Jun. 2012 31 Dec. 2011
Current Assets:
Monetary funds 12,257,715.18 515,955.59
Transactional financial assets
Notes receivable
Accounts receivable 1,788,612.34 1,233,403.30
Accounts paid in advance 50,000,000.00 50,000,000.00
Interest receivable
Dividend receivable 260,015.00 260,015.00
Other accounts receivable 413,736,272.15 401,353,832.36
Inventories 4,824,035.45 4,824,035.45
Non-current assets due within 1
year
Other current assets
Total current assets 482,866,650.12 458,187,241.70
Non-current assets:
Available-for-sale financial assets 354,896,490.00 286,947,500.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 300,734,154.62 301,163,618.90
Investing property 7,744,632.23 7,895,850.53
Fixed assets 18,259,612.67 19,120,348.43
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 1,576,872.42 1,600,704.24
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets
Total of non-current assets 683,211,761.94 616,728,022.10
Total assets 1,166,078,412.06 1,074,915,263.80
Current liabilities:
Short-term borrowings 235,000,000.00
Transactional financial liabilities
Notes payable
Accounts payable 2,482,949.70 2,482,949.70
Accounts received in advance 178,200.00 59,400.00
Employee’ compensation
391,029.53 537,236.72
payable
Tax payable -2,063,466.44 -2,478,194.48
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Interest payable 74,942,477.24 69,588,108.07
Dividend payable 3,213,302.88 3,213,302.88
Other accounts payable 260,621,830.62 347,896,763.31
Non-current liabilities due within
220,000,000.00
1 year
Other current liabilities
Total current liabilities 574,766,323.53 641,299,566.20
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Projected liabilities
Deferred income tax liabilities 66,601,927.50 48,295,625.00
Other non-current liabilities
Total non-current liabilities 66,601,927.50 48,295,625.00
Total liabilities 641,368,251.03 689,595,191.20
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 426,745,404.00 426,745,404.00
Capital reserves 585,499,957.10 533,467,995.51
Less: Treasury stock
Specific reserves
Surplus reserves 109,487,064.39 109,487,064.39
Retained profits -597,022,264.46 -684,380,391.30
Foreign exchange difference
Total owners’ (or shareholders’
524,710,161.03 385,320,072.60
equity
Total liabilities and owners’ (or
1,166,078,412.06 1,074,915,263.80
shareholders’ equity
3. Consolidated income statement
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total operating revenues 108,341,956.20 144,292,773.73
Including: Sales income 108,341,956.20 144,292,773.73
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 161,706,751.41 152,880,825.51
Including: Cost of sales 74,969,155.92 86,517,326.29
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
14
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate charges 8,907,927.55 17,123,298.21
Selling and distribution
4,879,658.11 3,593,594.12
expenses
Administrative expenses 53,000,592.30 39,721,435.23
Financial expenses 29,066,735.26 5,755,839.36
Asset impairment loss -9,117,317.73 169,332.30
Add: Gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment
18,113,290.90 -404,815.92
(“-” means loss)
Including: share of profits in
-429,464.28 -404,815.92
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) -35,251,504.31 -8,992,867.70
Add: non-operating income 72,889.50 430,386.00
Less: non-operating expense 126,353.94 67,670.52
Including: loss from non-current
15,200.25
asset disposal
IV. Total profit (“-” means loss) -35,304,968.75 -8,630,152.22
Less: Income tax expense 1,777,028.96 5,433,288.59
V. Net profit (“-” means loss) -37,081,997.71 -14,063,440.81
Including: Net profit achieved
by combined parties before the
combinations
Attributable to owners of the
-37,734,798.44 -15,041,866.11
Company
Minority shareholders’income 652,800.73 978,425.30
VI. Earnings per share -- --
(I) Basic earnings per share -0.09 -0.04
(II) Diluted earnings per share -0.09 -0.04
Ⅶ. Other comprehensive incomes 52,031,961.59 5,985,000.00
Ⅷ. Total comprehensive incomes 14,949,963.88 -8,078,440.81
Attributable to owners of the
14,297,163.15 -9,056,866.11
Company
Attributable to minority
652,800.73 978,425.30
shareholders
Where business mergers under the same control occurred in this report period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
Legal representative: Zheng Qing Person-in-charge of the accounting work: Chen Binglian
Chief of the accounting division: Yang Daoliang
4. Income statement of the Company
Unit: RMB Yuan
15
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total sales 579,338.20 193,340.00
Less: cost of sales 177,796.80 26,578.50
Business taxes and surcharges 32,330.94 46,550.85
Distribution expenses 1,267.00 15,000.00
Administrative expenses 10,762,024.79 8,780,814.70
Financial costs 16,037,614.63 3,766,085.05
Impairment loss -3,276,546.96 -460,057.00
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
110,513,290.90 -404,815.92
means loss)
Including: income form investment
-429,464.28 -404,815.92
on associates and joint ventures
II. Business profit (“-” means loss) 87,358,141.90 -12,386,448.02
Add: non-business income
Less: non-business expense 15.06 22,579.22
Including: loss from non-current
12,915.00
asset disposal
III. Total profit (“-” means loss) 87,358,126.84 -12,409,027.24
Less: income tax expense
IV. Net profit (“-” means loss) 87,358,126.84 -12,409,027.24
V Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income 52,031,961.59 5,985,000.00
VII. Total comprehensive income 139,390,088.43 -6,424,027.24
5. Consolidated cash flow statement
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of
90,839,597.75 121,695,433.47
commodities and rendering of service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of tradable
financial assets
Cash received from interest, handling
charges and commissions
16
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received
Other cash received relating to
11,113,568.62 17,137,414.67
operating activities
Subtotal of cash inflows from operating
101,953,166.37 138,832,848.14
activities
Cash paid for goods and services 31,480,717.55 37,708,925.23
Net increase of customer lendings
and advances
Net increase of funds deposited in the
central bank and amount due from
banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 52,599,524.79 41,532,522.52
Various taxes paid 12,674,520.81 46,765,196.25
Other cash payment relating to
40,790,827.78 40,206,773.65
operating activities
Subtotal of cash outflows from
137,545,590.93 166,213,417.65
operating activities
Net cash flows from operating activities -35,592,424.56 -27,380,569.51
II. Cash flows from investing activities:
Cash received from withdrawal of
43,000,000.00 188,500,000.00
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other 21,469,320.27 164,708.50
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
5,200,000.00 22,360,895.82
investing activities
Subtotal of cash inflows from
69,669,320.27 211,025,604.32
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 79,987,813.71 8,462,406.09
assets
Cash paid for investment 3,000,000.00 243,500,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
82,987,813.71 251,962,406.09
investing activities
Net cash flows from investing activities -13,318,493.44 -40,936,801.77
17
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
III. Cash Flows from Financing
Activities:
Cash received from capital
4,900,000.00
contributions
Including: Cash received from
minority shareholder investments by 4,900,000.00
subsidiaries
Cash received from borrowings 357,600,000.00 27,216,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
357,600,000.00 32,116,000.00
activities
Repayment of borrowings 268,000,000.00 10,500,000.00
Cash paid for interest expenses and
24,762,536.25 17,988,685.00
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority shareholders
Other cash payments relating to
4,359,000.00
financing activities
Sub-total of cash outflows from
297,121,536.25 28,488,685.00
financing activities
Net cash flows from financing activities 60,478,463.75 3,627,315.00
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
11,567,545.75 -64,690,056.28
equivalents
Add: Opening balance of cash and
52,507,843.73 136,376,851.19
cash equivalents
VI. Closing balance of cash and cash
64,075,389.48 71,686,794.91
equivalents
6. Cash flow statement of the Company
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of
707,165.00
commodities and rendering of service
Tax refunds received
Other cash received relating to
6,150,211.50 14,337,432.68
operating activities
Subtotal of cash inflows from operating
6,150,211.50 15,044,597.68
activities
Cash paid for goods and services
Cash paid to and for employees 2,432,405.76 2,195,035.52
Various taxes paid 291,624.04 1,234,830.23
Other cash payment relating to
7,370,972.46 8,550,914.15
operating activities
Subtotal of cash outflows from
10,095,002.26 11,980,779.90
operating activities
Net cash flows from operating activities -3,944,790.76 3,063,817.78
18
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
II. Cash flows from investing activities:
Cash received from retraction of
43,000,000.00 118,500,000.00
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other 20,932,029.27 6,000.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
5,200,000.00 20,034,243.32
investing activities
Subtotal of cash inflows from
69,132,029.27 138,540,243.32
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 83,157.00 1,334,900.00
assets
Cash paid for investment 57,250,000.00 216,600,000.00
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
57,333,157.00 217,934,900.00
investing activities
Net cash flows from investing activities 11,798,872.27 -79,394,656.68
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings 241,000,000.00 70,000,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
241,000,000.00 70,000,000.00
activities
Repayment of borrowings 220,000,000.00
Cash paid for interest expenses and
16,253,321.92 14,300,000.00
distribution of dividends or profit
Other cash payments relating to
859,000.00
financing activities
Sub-total of cash outflows from
237,112,321.92 14,300,000.00
financing activities
Net cash flows from financing activities 3,887,678.08 55,700,000.00
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
11,741,759.59 -20,630,838.90
equivalents
Add: Opening balance of cash and
515,955.59 47,697,821.48
cash equivalents
VI. Closing balance of cash and cash
12,257,715.18 27,066,982.58
equivalents
19
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
7. Consolidated statement of changes in owners’equity
Reporting period
Unit: RMB Yuan
Reporting period
Equity attributable to owners of the Company
Paid-up Total
Item Minority
capital Less: General owners’
Capital treasury Specific Surplus Retaine interests
(or risk
reserve reserve reserve d profit Others equity
share stock reserve
capital)
I. Balance at the end of the 426,745 530,451, 109,487 -693,67 26,674,62 399,679,37
previous year ,404.00 655.97 ,064.39 9,376.16 6.16 4.36
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 426,745 530,451, 109,487 -693,67 26,674,62 399,679,37
the year ,404.00 655.97 ,064.39 9,376.16 6.16 4.36
III. Increase/ decrease of 52,031,9 -37,734, -11,947,1 2,349,963.
amount in the year (“-” means 61.59 798.44 99.27 88
decrease)
-37,734, 652,800.7 -37,081,99
(I) Net profit
798.44 3 7.71
(II) Other comprehensive 52,031,9 52,031,961
incomes 61.59 .59
52,031,9 -37,734, 652,800.7 14,949,963
Subtotal of (I) and (II)
61.59 798.44 3 .88
(III) Capital paid in and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners
1. Capital paid in by
owners
2. Amounts of share-based
payments recognized in
owners’equity
3. Others
12,600,00 12,600,000
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 .00
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to 12,600,00 12,600,000
owners (or shareholders) 0.00 .00
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
20
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
426,745 582,483, 109,487 -731,41 14,727,42 402,029,33
IV. Closing balance
,404.00 617.56 ,064.39 4,174.60 6.89 8.24
Last year
Unit: RMB Yuan
Last year
Equity attributable to owners of the Company
Paid-up Total
Item Minority
capital Less: General owners’
Capital treasury Specific Surplus Retaine
(or risk Others interests equity
reserve reserve reserve d profit
share stock reserve
capital)
I. Balance at the end of the 426,745 605,264, 114,177, -648,89 21,220,56 518,515,97
previous year ,404.00 155.97 485.88 1,640.41 7.19 2.63
Add: retrospective
adjustments due to business
combinations under the same
control
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 426,745 605,264, 114,177, -648,89 21,220,56 518,515,97
the year ,404.00 155.97 485.88 1,640.41 7.19 2.63
III. Increase/ decrease of 5,985,00 -15,041, 5,878,425 -3,178,440.
amount in the year (“-” means 0.00 866.11 .30 81
decrease)
-15,041, 978,425.3 -14,063,44
(I) Net profit 866.11 0 0.81
(II) Other comprehensive 5,985,00 5,985,000.
incomes 0.00 00
5,985,00 -15,041, 978,425.3 -8,078,440.
Subtotal of (I) and (II) 0.00 866.11 0 81
(III) Capital paid in and 4,900,000 4,900,000.
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners .00 00
1. Capital paid in by 4,900,000 4,900,000.
owners .00 00
2. Amounts of share-based
payments recognized in
owners’equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to
21
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
owners (or shareholders)
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
426,745 611,249, 114,177, -663,93 27,098,99 515,337,53
IV. Closing balance
,404.00 155.97 485.88 3,506.52 2.49 1.82
8. Statement of changes in owners’equity of the Company
Reporting period
Unit: RMB Yuan
Reporting period
Paid-up
Item Less: General Total
capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 426,745,40 533,467,99 109,487,06 -684,380,3 385,320,07
previous year 4.00 5.51 4.39 91.30 2.60
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 426,745,40 533,467,99 109,487,06 -684,380,3 385,320,07
the year 4.00 5.51 4.39 91.30 2.60
III. Increase/ decrease of amount 52,031,961 87,358,126 139,390,08
in the year (“-” means decrease) .59 .84 8.43
87,358,126 87,358,126
(I) Net profit
.84 .84
(II) Other comprehensive 52,031,961 52,031,961
incomes .59 .59
52,031,961 87,358,126 139,390,08
Subtotal of (I) and (II) .59 .84 8.43
(III) Capital paid in and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
22
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners
(or shareholders)
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
426,745,40 585,499,95 109,487,06 -597,022,2 524,710,16
IV. Closing balance 4.00 7.10 4.39 64.46 1.03
Last year
Unit: RMB Yuan
Last year
Paid-up
Item Less: General Total
capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 426,745,40 608,280,49 109,487,06 -653,036,6 491,476,30
previous year 4.00 5.51 4.39 53.99 9.91
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 426,745,40 608,280,49 109,487,06 -653,036,6 491,476,30
the year 4.00 5.51 4.39 53.99 9.91
III. Increase/ decrease of amount 5,985,000. -12,409,02 -6,424,027.
in the year (“-” means decrease) 00 7.24 24
-12,409,02 -12,409,02
(I) Net profit 7.24 7.24
(II) Other comprehensive 5,985,000. 5,985,000.
incomes 00 00
5,985,000. -12,409,02 -6,424,027.
Subtotal of (I) and (II) 00 7.24 24
(III) Capital paid in and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
23
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners
(or shareholders)
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
426,745,40 614,265,49 109,487,06 -665,445,6 485,052,28
IV. Closing balance 4.00 5.51 4.39 81.23 2.67
（III）Notes to the financial statements
1. Changes in main accounting policies or estimates, correction of any significant accounting error and the
influenced amounts
（1）Change of accounting policies
Were the main accounting policies changed during the reporting period?
? Yes v No
（2）Change of accounting estimates
Were the main accounting estimates changed during the reporting period?
? Yes v No
（3）Correction of accounting errors
Was any accounting error made in previous periods discovered in the reporting period?
? Yes v No
2. Reasons for any change of the consolidation scope
The consolidation scope for the reporting period remained unchanged.
24
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
3. If a non-standard audit report is issued, the Company should make relevant notes.
N/A
25
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Hainan Pearl River Holding Company Limited
Notes on the Financial Statements for the Six Months ended 30 June 2012
(All amounts are stated in RMB Yuan unless otherwise stated)
I. General information
Hainan Pearl River Holding Company Limited, referred to as ‘the Company’or ‘Pearl River Holding’ grew out of the lawful
re-registration by the original Hainan Pearl River Industry Company Limited on January 11 1992. The re-registration was based on
the document of Qiong Fu Ban [1992] No.1 issued by the General Office of Hainan People’ Government and City Management
Office Qiong Yin [1992] No. 6 issued by the People’ Bank of Hainan province. By the time when the re-registration took place, the
Company issued a total amount of 81,880,000 shares, among which 60,793,600 shares were folded from the predecessor’ net assets
while the rest amount, 21,086,400 shares, were newly issued and were listed on Shenzhen Stock Exchange according to the
document of securities administration office [1992] No. 83 issued by the People's Bank of China in December 1992. The parent
company of the Pearl River Holding, the Guangjiang Industrial Company held the amount of 36,393,600 shares in 1992, equivalent
to a shareholding ratio of 44.45%. The business license registration number is 20128455-6 and the company is defined as belonging
to the real estate industry.
On 25th March 1993, approved by the Hainan joint-stock system pilot leading group office with the supporting document of Qiong
joint-stock office [1993] No.028 and the Shenzhen special economic zone branch of the People’ Bank of China with the
corresponding document of Shen People’ Bank Fu [1993] No.099, the company increased its share capital by stock-for stock: five
new shares for every ten shares held plus two freely delivered new shares. As a result, the share capital increased to 139,196,000
shares, of which the shareholder, Guangzhou Pearl River Industrial Company occupied 48,969,120 shares, holding an equity stake
of 35.18%.
In 1994, the equity capital was raised to the amount of 278,392,000 shares through delivering 10 new free shares for every 10 shares
held. Guangzhou Pearl River Industrial Company occupied 97,938,240 shares, holding an equity stake of 35.18%.
In 1995, based on the approval stated at the document of Shenzhen BanFu [1995] No. 45 and Shenzhen BanFu [1995] No.12, the
company issued 50 million B shares. An incremental share capital was thus followed based on the fact that every 1.5 new shares
were generated for every ten B shares, resulting in the amount of 377,650,800 shares outstanding in total. Guangzhou Pearl
River Industrial Company occupied 112,628,876 shares, holding an equity stake of 29.82%.
In 1999, 112,628,976 shares that were held by the Guangzhou Pearl River Industrial Group Co., Company were transferred to
26
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Beijing Wanfa Real Estate Development Company. Consequently, Beijing Wanfa Real Estate Development Company became the
first majority shareholder, holding the amount of 112,628,976 shares, which accounts for 29.82% of the total outstanding shares of
the company.
On 10th January 2000, with the Business License for Legal Person issued by the Hainan Administrative Bureau for Industry and
Commerce and the registration number 4600001006830 obtained, the name of the company was formally changed to Hainan Pearl
River Holding Company Limited.
August 17, 2006, with the implementation of equity division reform, an incremental of share capital to the total amount of
49.094604 million shares took place since additional shares were delivered to all shareholders based on a 10：1.3 （1.3 free new
shares for every 10 held）distribution regime. The total amount of shares outstanding was thus increased to 426,745,404 shares with
the Wanfa Real Estate Development Company occupying 107,993,698 shares, taking up the ownership percentage of 25.31%. In
2007 and 2009, non-circulation stock shareholders paid back consideration for reform of the shareholder structure; the
corresponding value was respectively 3,289,780 and 1,196,000 shares of stock. Beijing Wanfa Real Estate Development Company
held an amount of 112,479,478 shares at the end of 2009, which was equivalent to an equity stake of 26.36%. In 2010, the
controlling shareholder Beijing Wanfa Real Estate Development Stock Limited Company changed its name to Beijing Wanfa Real
Estate Development Limited Liability Company. By the end of June, this dominant shareholder held an amount of 112,479,478
shares, equivalent to an ownership percentage of 26.36%.
Registered capital: RMB 426,745,400 Yuan
The business license number: 4600001006830
Office address: 29/F., Dihao Building, Pearl River Plaza, Binhai Avenue, Haikou, Hainan, the PRC.
Corporate representative: Zheng Qing
The operation scope: Industrial investment, tropical farming, aquaculture, real estate development and management, hotel
investment and management, material supply, construction equipment purchasing, leasing, hardware, chemical, trade of household
items, decoration, vehicle parking, and high-tech investment projects, investment in environmental protection projects, investment
advice. The company mainly engaged in real estate development and property management, which belong to real estate aspect.
The Company's basic organizational structure: General meeting of shareholders is the highest organ of power.
Board of directors is the executing agency. Supervisory board is the Company's internal auditing agency. General
Manager is responsible for the Company's daily operational management.
There are General Manager Office, Securities Department, and Tourism Real Estate Department, Financial
Department, Management Department, Auditing Department and others in the Company.
27
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
II. Accounting policies, accounting estimates and error correction of previous years
1． Preparation basis of financial statement
Preparation of the financial statements is based on going concern postulate. Recognition and measurement comply with actual
transactions or events, and the Company prepares financial statements on these bases.
2. Announcement about compliance with Accounting Standards for Business Enterprises
The Company’ financial statements are prepared in accordance with the requirements of the Accounting Standards for Business
Enterprises, and they fairly and completely present the financial position, operation results, cash flow and other relevant
information of the Company.
3. Accounting year
Accounting year of the Group is the calendar year from January 1 to December 31. This report covers the period from January 1,
2011 to December 31, 2011.
4. Reporting currency
The Company’ reporting and presentation currency is Renminbi (“RMB”).
5. Consolidation Basis
(1) Merge of the enterprises under the uniform control
As there is the merge of the enterprises under the common control, the accrual basis shall be used. The assets, liabilities
(except the adjustment caused by complying with various accounting policies) of the merged party shall be measured as their
book value at the merging date. The difference between the price of the book value on merge (or face value of the total issued
shares) and obtained book value of net assets, shall adjust the capital surplus, and as the capital surplus is offset, the retained
earnings shall be adjusted. The pre-merger net profit incurred by the merged party, shall be attributed to consolidated income
statement.
(2) Merge of enterprises under the non-uniform control
As there is the merge of the enterprises under the non-uniform control, the purchasing principal to be adopted by the
Company. On the purchasing date, the consolidating cost is determined by the fair values of the assets, occurred or payable
liabilities, and the issued equity securities, which are paid for purchasing. Meanwhile, the assets, liabilities and the
contingent liabilities of the vendor are determined at their fair values.
The excess amount between the consolidating cost and the fair value of the net assets of the vendor entity shall be
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
recognized as goodwill in the consolidated balance sheet; the balance of the consolidating cost and the fair value of the net
assets of the vendor shall be included in the current profit and loss.
The operating result shall be consolidated from the acquisition date until the termination of the control.
6. The standard for consolidation financial statement preparation
All subsidiaries of the company are in the scope of the consolidation.
The company prepares the consolidated financial statements in accordance with the “Accounting standard for Business
Enterprises No. 33- Consolidated financial statement”
7. Cash and Cash equivalents
Cash refers to cash on hand and demand deposits. “Cash equivalents”refer to short -term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk on change in value.
8. Foreign currency transactions
Foreign currency (currency other than the reporting currency) transactions are translated into reporting currency at spot
exchange rates prevailing on the day in which the transactions take place. Monetary items are adjusted according to spot
exchange rates at the balance sheet date. The exchange balance on foreign currency shall be capitalized and recorded into the
cost of relevant assets if it is eligible for capitalization; other exchange balance on foreign currency shall be recorded into
current profit and loss. Foreign currency non-monetary items measured with history cost are translated into reporting currency
at spot exchange rates on the occurrence date. Foreign currency non-monetary items measured with fair value are translated
into reporting currency at spot exchange rates of fair value confirming date; the difference is recorded as the changes in the
profit and loss of fair value.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are restated into the reporting
currency using the spot exchange rates at that date. Among the equity items, all items are translated into reporting currency at
spot exchange rates on the occurrence date except the item of undistributed profits. Income Statement items are translated into
reporting currency at s ot exchange rate on the occurrence date. The exchange difference from translation of financial
statements denominated in foreign currency is included in the equity and presented individually.
9. Financial Instruments
(1) Classification of financial assets and financial liabilities
Financial assets shall be classified into the following four categories when they are initially recognized: the financial assets
which are measured at their fair values and the variation of which is recorded into the profits and losses of the current period,
including transactional financial assets and the financial assets which are measured at their fair values and of which the
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
variation is included in the current profits and losses; held-to-maturity investments; loans and account receivables;
available-for-sale financial assets.
Financial liabilities shall be classified into the following two categories when they are initially recognized: the financial
liabilities which are measured at their fair values and of which the variation is included in the current profits and losses,
including transactional financial liabilities and the designated financial liabilities which are measured at their fair values and
of which the variation is included in the current profits and losses; and other financial liabilities.
(2) Recognition and measurement of financial instruments
When an enterprise becomes a party to a financial instrument, it shall recognize a financial asset or financial liability. The
financial assets and financial liabilities initially recognized by an enterprise except loans and account receivables shall be
measured at their fair values; loans and account receivables initially recognized by an enterprise shall be measured at price
in the contract or agreement. For the financial assets and liabilities measured at their fair values and of which the variation is
recorded into the profits and losses of the current period, the transaction expenses thereof shall be directly recorded into the
profits and losses of the current period; for other categories of financial assets and financial liabilities, the transaction
expenses thereof shall be included into the initially recognized amount.
An enterprise shall make subsequent measurement on its financial assets according to their fair values, and may not deduct
the transaction expenses that may occur when it disposes of the said financial asset in the future. However, those under the
following circumstances shall be excluded: a. The investments held until their maturity, loans and accounts receivable shall
be measured on the basis of the post-amortization costs by adopting the actual interest rate method; b. The equity whose fair
value cannot be measured reliably, and the derivative financial assets which are connected with the said equity instrument
and must be settled by delivering the said equity instrument shall be measured on the basis of their costs.
An enterprise shall make subsequent measurement on its financial liabilities on the basis of the post-amortization costs by adopting the actual
interest rate method, with the exception of those under the following circumstances: a. For the financial liabilities measured at their fair values
and of which the variation is recorded into the profits and losses of the current period, they shall be measured at their fair values, and none of
the transaction expenses may be deducted, which may occur when the financial liabilities are settled in the future. b. For the derivative
financial liabilities, which are connected to the equity instrument for which there is no quotation in the active market and whose fair value
cannot be reliably measured, and which must be settled by delivering the equity instrument, they shall be measured on the basis of their costs.
c. For the financial guarantee contracts which are not designated as a financial liability measured at its fair value and the variation thereof is
recorded into the profits and losses of the current period, and for the commitments to grant loans which are not designated to be measured at
the fair value and of which the variation is recorded into the profits and losses of the current period and which will enjoy an interest rate lower
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
than that of the market, a subsequent measurement shall be made after they are initially recognized according to the higher one of the following:
the best estimation required to pay when carrying out the prevailing obligations, and initially recognized amount deducting accumulative
amortization which adopts the actual interest rat e method.
(3) Recognition and measurement of transfer of financial assets
Where an enterprise has transferred nearly all of the risks and rewards related to the ownership of the financial asset to the transferee, it shall
stop recognizing the financial asset. If it retained nearly all of the risks and rewards related to the ownership of the financial asset, it shall not
stop recognizing the financial asset. Where an enterprise does not transfer or retain nearly all of the risks and rewards related to the ownership
of a financial asset, it shall deal with it according to the circumstances as follows, respectively: a. If it gives up its control over the financial
asset, it shall stop recognizing the financial asset; b. If it does not give up its control involvement in the transferred financial asset, recognize
the related financial asset and recognize the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between the amounts of the following
2 items shall be recorded in the profits and losses of the current period: a. The book value of the transferred financial asset; b. The sum of
consideration received from the transfer, and the accumulative amount of the changes of the fair value originally recorded in the owner's
equities. If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value of the transferred financial
asset shall, between the portion whose recognition has been stopped and the portion whose recognition has not been stopped, be apportioned
according to their respective relative fair value, and the difference between the amounts of the following 2 items shall be included into the
profits and losses of the current period : a. The book value of the portion whose recognition has been stopped; b. The sum of consideration of
the portion whose recognition has been stopped, and the portion of the accumulative amount of the changes in the fair value originally
recorded in the owner's equities which is corresponding to the portion whose recognition has been stopped.
(4) Determination of the fair value of main financial assets and financial liabilities
As for the financial assets or financial liabilities for which there is an active market, the quoted prices in the active market shall be used to
determine the fair values thereof. Where there is no active market for a financial instrument, the enterprise concerned shall adopt value
appraisal techniques to determine its fair value. The value appraisal techniques mainly include the prices adopted by the parties, who are
familiar with the condition, in the latest market transaction upon their own free will, the current fair value obtained by referring to other
financial inst ruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc. As for the financial
assets initially obtained or produced at source and the financial liabilities assumed, the fair value thereof shall be determined on the basis of the
transaction price of the market.
(5) Impairment of financial assets
An enterprise shall carry out an inspection, on the balance sheet day, on the carrying amount of the financial assets other than those measured
at their fair values and of which the variation is recorded into the profits and losses of the current period. An impairment test shall be made on
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
the financial assets with significant single amounts. With regard to the financial assets with insignificant single amounts, they shall be included
in a combination of financial assets with similar credit risk features so as to carry out an impairment-related test. Where, upon independent test,
the financial asset (including those financial assets with significant single amounts and those with insignificant amounts) has not been
impaired, it shall be included in a combination of financial assets with similar risk features so as to conduct another impairment test.
Where a financial asset measured on the basis of post -amortization costs is impaired, the carrying amount of the said financial asset shall be
written down to the current value of the predicted future cash flow (excluding the loss of future credits not yet occurred), and the amount as
written down shall be recognized as loss of the impairment of the asset. Where there is a very small gap between the predicted future cash flow
of a short -term account receivable item and the current value thereof, the predicted future cash flow is not required to be capitalized when
determining the relevant impairment-related losses. Where an equity instrument investment for which there is no quoted price in the active
market and whose fair value cannot be reliably measured, or a derivative financial asset which is connected with the equity inst rument and
which must be settled by delivering the equity instrument, suffers from any impairment, the gap between the carrying amount of the equity
instrument investment or the derivative financial asset and the current value of the future cash flow of similar financial assets capitalized
according to the returns ratio of the market at the same time shall be recognized as impairment-related losses. Where available-for-sale
financial assets are impaired due to significant drop of fair value and the drop is not temporary, the accumulative losses arising from the
decrease of the fair value of the owner’ equity which was directly included shall be transferred out and recorded into the profits and losses of
the current period.
10. Accounts receivable and bad debts
(1) Measurement method and the percentage of bad debts
Measurement method of bad debts: accounted with allowance method.
At the end of the period, impairment test shall be made on individual accounts receivable with significant amounts. If there is
objective evidence that they have been impaired, bad debt loss shall be recognized and provision for bad debts shall be made
base on the differences between book values and the present value of future cash flows.
For those individual accounts receivable without significant amounts at the end of the period, along with those accounts
receivable that have been tested individually but not impaired, the Company classifies them in line with similar credit risk
characteristics into several groups, and make a specific percentage of bad debts provision on the accounts receivable balances
at balance sheet date. On the basis of the actual loss rate of receivable accounts, with same or similar credit risk
characteristics of accounts receivable package in previous year, the Company also considers current situation and determine
the percentage of bad debt provision.
Here is the Company’ bad debts provision policy:
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Percentage of Accounts Percentage of Others
Ages Receivable (%) Receivable (%)
Within 1 year (including 1 year, same as
2 2
following)
1 year to 2 years 5 5
2 years to 3 years 10 10
3 years to 4 years 20 20
4 years to 5 years 30 30
Over 5 years 50 50
There is strong evidence that accounts receivable can’ be recovered or little possibility of recovery (it is unable to pay in the
short term due to bankruptcy, insolvent, serious shortage of cash flow, serious natural disasters and etc. ) as well as other
evidences of occurring loss, the Company can make full provision for the accounts receivable.
(2) The accounts receivable meeting the following criteria are recognized as bad debts:
For accounts receivable that are surely uncollectible, such as they can be written off as bad debts after the approval of the
general meeting of shareholders or the board of directors.
11. Inventories
(1) Inventories include: development cost (constructing development product), development product, finished goods, low-value
consumable supplies and etc. All inventories are calculated at actual cost when acquire. The issue of inventories is calculated
according to individual cognizance method. The low–value consumable supplies are amortized at one time. Inventories stock
physical count system: perpetual inventory method
Measurement method of land used for development: the land used for development is included in “Inventories - development
cost”
Public facilities costs: public facilities such as schools, as well as public facilities fees acquired by government departments, the
cost is included in "development costs" and its apportionment and detailed calculation are in accordance with calculation objects
and cost items.
(2) For inventories at balance sheet date, the evaluation criteria should base on the lower value between costs and net values that
can be converted into cash. When net values that can be converted into cash are lower than costs, provision for impairment loss
of inventories shall be made and recorded into current profit and loss.
12. Long-term equity investment
(1) The initial cost of the long-term equity investment
For the business combination under the same control, it shall, on the date of merger, regard the share of the book value of the
owner's equity of the merged enterprise as the initial cost of the long-term equity investment. For the business combination
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
not under same control, the initial cost of long-term equity investment is fair value of assets paid, liabilities undertaken, the
equity securities issued by the Company, and includes all direct expenses and future events that will influence combination
cost.
Besides the long-term equity investments formed by the business combination, the initial cost of a long-term equity
investment obtained by other means shall be ascertained in accordance with the provisions as follows: The initial cost of a
long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually paid; the initial
cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair value of the equity
securities issued; the initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment
contract or agreement.
(2) Subsequent measurement
The Company uses cost method for the following conditions: a long-term equity investment where the investing enterprise
can exercise control over the investee, or the investing enterprise does not have joint control or significant influence over the
investee, the investment is not quoted in an active market and its fair value can’ be reliably measured. For a long-term
equity investment where the investing enterprise can exercise control over the investee, the investing enterprise shall make
an adjustment by employing the equity method when it works out consolidated financial statements. When adopting cost
method, the dividends or profits declared to distribute by the invested entity shall be recognized as the current investment
income. The investment income recognized by the investing enterprise shall be limited to the amount received from the
accumulative net profits that arise after the invested entity has accepted the investment. Where the amount of profits or cash
dividends obtained by the investing entity exceeds the aforesaid amount, it shall be regarded as recovery of initial
investment cost.
A long-term equity investment of the investing enterprise that does joint control or significant influences over the invested
entity shall be measured by employing the equity method. If the initial cost of a long-term equity investment is more than the
investing enterprise' attributable share of the fair value of the invested entity's identifiable net assets for the investment, the
initial cost of the long-term equity investment may not be adjusted. If the initial cost of a long-term equity investment is less
than the investing enterprise' attributable share of the fair value of the invested entity's identifiable net assets for the
investment, the difference shall be included in the current profits and losses and the cost of the long-term equity investment
shall be adjusted simultaneously. After an investing enterprise obtains a long-term equity investment, it shall, in accordance
with the attributable share of the net profits or losses of the invested entity, recognize the investment profits or losses and
adjust the book value of the long-term equity investment. Where any change is made to the owner's equity other than the net
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
profits and losses of the invested entity, the book value of the long-term equity investment shall be adjusted and be included
in the owner's equity.
The Company should have impairment test for any long-term equity investment on very balance sheet date. When the
estimated value in use is less than its book value, it will be treated as impairment loss. And this loss should be transferred
into current profit and loss account; meanwhile, the company should set up provision for the long-term equity investment
impairment loss. To any long-term equity investments, which are measured by cost method, there is no price or its fair value
cannot be measured reliably, the impairment loss of these investments should be the difference between the book value and
the present value of the future cash flow calculated by using current market rate of similar financial asset.
For other long-term equity investment, where any evidence shows that there is possible assets impairment, the impairment
provision is made according to relevant regulations and methods.
(3) Recognition basis of joint control and significant influences
The term "joint control" refers to the control over an economic activity in accordance with the contracts and agreements,
which does not exist unless the investing parties of the economic activity with one an assent on sharing the control power
over the relevant important financial and operating decisions. The term "significant influences" refers to the power to
participate in making decisions on the financial and operating policies of an enterprise, but not to control or do joint control
together with other parties over the formulation of these policies.
(4) Disposal of long-term equity investment
When disposing of a long-term equity investment, the difference between its book value and the actual purchase price shall
be included in the current profits and losses. If any change other than the net profits and losses of the invested entity occurs
and is included in the owner's equity, the portion previously included in the owner's equity shall, when disposing of a
long-term equity investment measured by employing the equity method, be transferred to the current profits and losses
according to a certain proportion.
13. Investment property
The term "investment property" refers to the real estates held for generating rent and/or capital appreciation, including: the
right to use any land which has already been rented; the right to use any land which is held and prepared for transfer after
appreciation; and the right to use any building which has already been rented. The initial measurement of the investment
property shall be made at its cost. An enterprise shall make a follow-up measurement to the investment real estate through the
cost pattern. For buildings which have already been rented, the Company calculates depreciation as the same method of fixed
assets. For the right to use any land, it is amortized with straight-line method according to the serviceable life. At the balance
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
sheet date, where any evidence shows that there is possible assets impairment, the impairment provision is made.
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets are tangible assets that are held for use in production or supply of goods or services, for rental to others, or for
administrative purpose, and have useful lives more than one accounting year.
The expected discard expenses should be taken into consideration in the ascertainment of the cost of a fixed asset.
(2) The category and depreciation method of fixed assets
Fixed assets include buildings and structures, vehicles, general equipments, specific equipments and other equipments.
Straight-line method is in used to calculate the depreciation of fixed assets. The estimated useful lives, expected residual
value and annual depreciation rate of various types fixed assets are listed as follows:
Estimated useful lives Expected residual value Annual depreciation rate
Category
(years) (%) (%)
Buildings & Houses 25 5 3.8
Motor Vehicle 5 5 19.0
General equipments 10 5 9.5
Specific equipments 5 5 19.0
Other equipments 5 5 19.0
Depreciation shall be made for the fixed assets on a monthly basis. Fixed assets increased this month shall make depreciation
from next month; fixed assets decreased this month shall stop making depreciation from next month.
The company shall, at least at the end of each year, have a check on the useful life, expected residual value and the
depreciation method of the fixed assets, and adjust them when necessary.
At the balance sheet date, where any evidence shows that there is possible assets impairment, the impairment provision is
made according to Notes II. 17.
(3) Idle fixed assets
Fixed assets that are not used for six months continuously due to underemployment or natural disasters are identified as idle
fixed assets (except for seasonal break).
The depreciation method of idle fixed assets is consistent with other fixed assets.
(4) Fixed assets under financing lease
When one or more of the following criteria are met, a lease shall be classified as a financial lease:
a. the lease transfers ownership of the leased asset to the lessee by the end of the lease term;
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
b. the lessee has the option to purchase the leased asset at a price that is expected to be sufficiently lower than the fair value at
the date the option becomes exercisable such that, at the inception of the lease, it is reasonably certain that the option will
be exercised by the lessee;
c. the lease term is for the major part of the useful life of the leased asset even if title is not transferred;
d. in the case of the lessee, at the inception of the lease the present value of the minimum lease payments amounts to
substantially all of the fair value of the leased asset; in the case of lesser, at the inception of the lease the present value of
the minimum lease receipts amounts to substantially all of the fair value of the leased asset;
e. the leased assets are of a specialized nature such that only the lessee can use them without major modifications being made.
Fixed assets under financing lease shall be recorded at the lower one of the fair value of the leased asset and the present value
of the minimum lease payments. The depreciation method is consistent with fixed assets of the Company.
15. Construction in progress
Construction in progress (“CIP” includes all costs incurred during the preparation period before commencement of
construction and until the asset is ready for its intended use. These costs include direct materials, direct labour, equipment
for installation, construction and installation charges, management fees, gain or loss on trial run production and borrowing
costs which are qualified for capitalization.
CIP is transferred to fixed assets when the asset is ready for its intended use.
At the balance sheet date, where any evidence shows that there is possible CIP impairment, the impairment provision is made
according to Notes II.17.
16. Borrowing Costs
Borrowing costs are interest and other related costs incurred by the Company in connection with the borrowing of funds, and
include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with the
arrangement of borrowings, and exchange differences arising from foreign currency borrowings. Borrowing costs that are
directly attributable to the acquisition, construction or production of a qualifying asset shall be capitalized as part of the cost
of that asset. The amounts of other borrowing costs incurred shall be recognized as an expense in the period in which they are
incurred.
Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial period of
time for acquisition, construction or production to get ready for their intended use or sale. The capitalization of borrowing
costs can commence only when all of the following conditions are satisfied: (1) expenditures for the asset are being incurred;
(2) borrowing costs are being incurred; (3) activities relating to the acquisition, construction or production of the asset that are
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
necessary to prepare the asset for its intended use or sale have commenced.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the
capitalization of the borrowing costs shall be ceased; then the borrowing costs incurred shall be recorded into the profits and
losses of the current period. Borrowing costs due to loans from real estate development are recorded into development cost
before the completion of the project and recorded into current profit and loss after the completion of the project. Borrowing
costs are recorded into development cost and amortized quarterly.
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period
lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred
during such period shall be recognized as expenses, and shall be recorded into the profits and losses of the current period.
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as
follows:
(1) for a specific-purpose borrowing, the amount of interest to be capitalized shall be the actual interest expense incurred for
the period less temporary deposit’ interest or investment income;
(2) Where funds are borrowed under general-purpose borrowings, the Company shall determine the amount of interest to be
capitalized by applying a capitalization rate to the weighted average of the excess amounts of cumulative expenditures on the
asset over and above the amounts of specific-purpose borrowings. The capitalization rate shall be the weighted average of the
interest rates applicable to the general-purpose borrowings.
17. Intangible assets
The term "intangible assets" refers to the identifiable non-monetary assets possessed or controlled by enterprises which have
no physical shape. If it is unable to forecast the period when the intangible asset can bring economic benefits to the enterprise,
it shall be regarded as an intangible asset with uncertain service life. The intangible assets shall be initially measured
according to its cost. If it is unable to determine the expected realization pattern reliably, intangible assets shall be amortized
by the straight-line method. An enterprise shall, at least at the end of each year, check the service life and the amortization
method of intangible assets with limited service life, and adjust them when necessary. Intangible assets with uncertain service
life may not be amortized. An enterprise shall check the service life of intangible assets with uncertain service life during each
accounting period. Where any evidence shows that there is possible assets impairment, the impairment provision is made.
18. Long-term prepaid expenses
Long-term prepaid expenses mainly include spending paid with the benefit period of more than one year (excluding the year
period) such as car parking fees, housing renovation fees, etc. Long-term prepaid expenses shall be amortized the costs over
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
the duration of the project beneficiary.
19. Contingencies liabilities
The obligation pertinent to a Contingencies shall be recognized as accrued liabilities when the following conditions are
satisfied simultaneously: (1) That obligation is a current obligation of the enterprise; (2) It is likely to cause any economic
benefit to flow out of the enterprise as a result of performance of the obligation; (3) The amount of the obligation can be
measured in a reliable way. The estimated debts shall be initially measured in accordance with the best estimate of the
necessary expenses for the performance of the current obligation.
20. Revenue recognition
(1) Revenue from the sale of goods shall be recognized only when all of the following conditions are satisfied:
a. the enterprise has transferred to the buyer the significant risks and rewards of ownership of the goods;
b. the enterprise retains neither continuing managerial involvement to the degree usually associated with ownership nor effective
control over the goods sold;
c. the amount of revenue can be measured reliably;
d. it is probable that the associated economic benefits will flow to the enterprise;
e. the associated costs incurred or to be incurred can be measured reliably.
Real estate sales revenue: the Company can recognize real estate sales revenue after the completion and acceptance of the
property, signing sale contract, acquiring payment proof from buyer and delivery. When the buyer receives written delivery
notice and has no warrant to refuse to accept it, the sales revenue is realized after delivery limit closed of delivery notice. For the
development project consigned by other, as well as in accordance with “Accounting Standards for Business Enterprises
-Construction Contract", the revenue shall be recognized in light of the percentage-of- completion method. The percentage-of-
completion is determined by the proportion of finished workload.
(2) Rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably at the balance sheet date
(including: the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to
the enterprise; the stage of completion of the transaction can be measured reliably; the costs incurred and to be incurred for
the transaction can be measured reliably), revenue associated with the transaction shall be recognized using the percentage
of completion method, and the stage of completion of the transaction is recognized according to the proportion of the cost
having taken place occupied the estimated total cost.
When the outcome of a transaction involving the rendering of services cannot be estimated reliably at the balance sheet date:
when the costs incurred are expected to be recoverable, revenue shall be recognized to the extent of costs incurred and an
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
equivalent amount shall be charged to profit or loss as service costs; when the costs incurred are not expected to be
recoverable, the costs incurred shall be recognized in profit or loss for the current period and no service revenue shall be
recognized.
The revenue of property management service is recognized when following conditions are satisfied: the property
management service has been offered; the associated economic benefits will flow to the enterprise; the associated costs can
be measured reliably.
(3) Use by others of enterprise assets
Revenue arising from the use by others of enterprise assets shall be recognized only when both of the following conditions are satisfied: it is
probable that the associated economic benefits will flow to the enterprise; the amount of the revenue can be measured reliably. The amount of
interest shall be determined according to the length of time for which the enterprise’ currency fund is used by others and the effective interest
rate. The amount of royalties shall be determined according to the period and method of charging as stipulated in the relevant contract or
agreement.
21. Government grants
Government grants shall be recognized at fair value on the conditions that the Company can receive the grant and comply with the conditions
attaching to the grant. For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred by
the Company in subsequent period, the grant shall be recognized as deferred income, and recognized in profit or loss over the periods in which
the related costs are recognized. A government grant related to an asset shall be recognized as deferred income, and evenly amortized to profit
or loss over the useful life of the related asset.
22. Recognition of deferred income tax assets and liabilities
(1) The Company shall recognize the deferred income tax assets arising from a deductible temporary difference to the extent
of the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible
temporary difference. However, the deferred income tax assets, which are arising from the initial recognition of assets or
liabilities during a transaction which is simultaneously featured by the following, shall not be recognized:
(i) This transaction is not business combination; and
(ii) At the time of transaction, the accounting profits will not be affected, nor will the taxable amount (or the deductible
loss) be affected.
(2) Where the deductible temporary difference related to the investments of the subsidiary companies, associated enterprises
and joint enterprises can meet the following requirements simultaneously, the enterprise shall recognize the corresponding
deferred income tax assets:
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
(i) The temporary differences are likely to be reversed in the expected future; and
(ii) It is likely to acquire any amount of taxable income tax that may be used for making up the deductible temporary
differences.
(iii) As for any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred
income tax assets shall be determined to the extent that the amount of future taxable income to be offset by the
deductible loss or tax deduction to be likely obtained.
(3) Recognition of deferred income tax liabilities
Except for the deferred income tax liabilities arising from the following transactions, an enterprise shall recognize the
deferred income tax liabilities arising from all taxable temporary differences:
(i) The initial recognition of business reputation;
(ii) The initial recognition of assets or liabilities arising from the following transactions which are simultaneously featured
by the following:
(a) The transaction is not business combination;
(b) At the time of transaction, the accounting profits will not be affected, nor will the taxable amount (or the deductible
loss) be affected.
(4) The income taxes of the current period and deferred income tax of an enterprise shall be treated as income tax expenses or
incomes, and shall be recorded into the current profits and losses, excluding the income taxes incurred under the following
circumstances:
(i) The business combination; and
(ii) The transactions or events directly recognized as the owner's rights and interests.
(5) Impairment on the deferred income tax assets
On the balance sheet date, the carry amounts of the deferred income tax assets shall be reviewed.
23. Maintenance fund
The Company’ property management company receives and manages public maintenance fund consigned by owners, and
charges to “agency fund” The fund is used in the maintenance and update of the common apparatus and common position of
the house and communal facilities of property management region.
24. Quality assurance reserve funds
Construction party should remain quality assurance reserve funds according to the amount in the construction contract, and
41
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
list in "accounts payable". The funds should be paid according to the actual conditions and contract after guarantee period.
25. Changes of accounting policies and accounting estimates and error correction
(1) Changes of accounting policies
Ｎｏｔ ａｐｐｌｉｃａｂｌｅ
(2) Notes for accounting estimates of previous period
Not applicable.
26. Changes of accounting estimates and error correction of previous period
Not applicable.
III. Taxation
The main taxes include: business tax, city construction and maintenance tax, education fee, income tax and etc. The tax rates are as following:
Category Rate Taxable base
Revenue of house property sale and lease, property
Business tax 5% management income and etc.
City construction and maintenance tax 5%, 7% Business tax and value-added tax
Education fee 3% Business tax and value-added tax
Income tax 25% Taxable income
IV. Business combinations and consolidation financial statements
The Company shall include all subsidiaries within the scope of consolidation.
The consolidated financial statements shall be prepared by parent based on the financial statements of the parent and its subsidiaries,
using other related information and after adjusting the long-term equity investments in subsidiaries using the equity method
according to “Accounting Standard for Business Enterprises No.33— Consolidated Financial Statements”
1. Subsidiaries established by the Company
Amount
Registered invested by
capital Voting the Consolidated Minority
Registered Principal Holding
Subsidiary’ name rights (Yes or No)
address (RMB activities proportion Company interest
proportion (RMB 0’000)
0’000) (RMB
0’000)
Properties and
Hainan Pearl River Hainan
Properties and Hotels
500 Hotels 98% 98% 490 Yes 10.95
Management Co., Ltd.
Haikou
Management
Hainan Pearl River
Environmental Projects Yes
Hainan 100 Gardens 100% 100% 100
Co.,
42
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Amount
Registered invested by
capital Voting Consolidated Minority
Registered Principal Holding the
Subsidiary’ name rights (Yes or No)
address (RMB activities proportion Company interest
proportion (RMB 0’000)
0’000) (RMB
0’000)
Ltd.
Haikou engineering
construction
Hainan Pearl River
Estate Hainan 50 Cleaning projects 100% 100% 50 Yes
Haikou
Cleaning Company
Mechanical and
Hainan Pearl River
Estate Hainan
Yes
Machine Engineering 150 electrical 100% 100% 150
Company Haikou
products sales
Real Estate
Hainan Pearl River Hainan
Estate Yes
100 Marketing 100% 100% 100
Marketing Co., Ltd.
Haikou
Planning
Sanya Wanjia Hotel
Hainan Sanya 12,000 Hotel service 100% 100% 12,000 Yes
Management Co., Ltd.
Hubei Pearl River Real Real estate
Estate Development Co.,
Ltd. Yes 1,225.73
Hubei Wuhan 6,500 development and 88% 88% 5,720
management
Wuhan Pearl River
Meilin
Yes
Hotels Management Co., Hubei Wuhan 50 Service 100% 100% 50
Ltd.
Real estate
Hainan Pearl River
Enterprises Holding Co., Yes
Ltd. Shanghai Real Shanghai 4,000 development and 100% 100% 4,000
Estate Co.
management
Beijing Jiubo Culture Cultural and Yes
Development Co., Ltd. Beijing 500 sports services 100% 100% 500
Mudanjiang Pearl River
Tourism Investment and Hotel Yes
Development Group Mudanjiang 6,000 management 100% 100% 6,000
Limited
Mudanjiang Wanjia Star
Hotel Co., Ltd. Hotel service 100% 100% Yes
Mudanjiang 50 50
Mudanjiang Jingbohu Hotel service 100% 100% Yes
Wanjia Hotel Co., Ltd. Mudanjiang 50 50
Shanghai Sea Pearl Property
Property Management 50% 50% Yes 27.35
Shanghai US $ 20 83
Co., Ltd.
management
43
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Amount
Registered invested by
capital Voting Consolidated Minority
Registered Principal Holding the
Subsidiary’ name rights (Yes or No)
address (RMB activities proportion Company interest
proportion (RMB 0’000)
0’000) (RMB
0’000)
Real estate
Hebei
51% 51% Yes 208.71
1,000 development and 510
Hebei zhengshiqinghui Shijiazhuang
Real Estate
Development Co., Ltd. property services
2. The subsidiaries acquired by the business combination under non-uniform
control
Registered
Subsidiary’ Business Registered Principal capital Holding Voting rights Consolidated
name category address activities (RMB proportion proportion (Yes or No)
0’000)
Hailin Wanjia Hailin of
Snowtown
Limited Hotel
Holiday Hotel 2,000 100.00 100.00 Yes
Liability Heilongjiang service
Management
Co., Ltd.
Province
V. Notes to significant items of the consolidated financial statements
1. Monetary funds
（1）Monetary funds disclosed by categories
Items Jun 30, 2012 Jan 1, 2012
Cash 535,337.21 2,174,511.88
Bank deposit 52,745,777.68 50,327,357.51
Other monetary funds 10,794,274.59 5,974.34
Total 64,075,389.48 52,507,843.73
Note: RMB is the currency that applies to all monetary funds held by the company.
(2) Details of ‘Other Monetary funds’
Items Jun 30, 2012 Jan 1, 2012
Credit card 11,946.74 5,974.34
Securities accounts 10,782,327.85
Total 10,794,274.59 5,974.34
Note: There were no access-restricted funds for the final balance, neither were those funds that have been deposited abroad or may
bring potential recovery risks.
2. Accounts receivable
44
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
(1) Accounts receivable listed by categories
June 30, 2012 January 1, 2012
Bad Debt Bad Debt
Categories Amounts Amounts
Provision Provision
Ratio Ratio Ratio Ratio
Amounts Amounts Amounts Amounts
(%) (%) (%) (%)
1.Significant accounts receivable
and bad debts accounted 7,761,707.60 36.99 7,761,707.60 100.00 7,761,707.60 42.98 7,761,707.60 100.00
individually
2.Bad debt accounted by the
combinations
Age Combinations 11,176,334.42 53.26 708,096.29 6.34 7,596,153.44 42.06 645,638.32 8.50
Combined Subtotal 11,176,334.42 53.26 708,096.29 6.34 7,596,153.44 42.06 645,638.32 8.50
3.Other unimportant receivables
but bad debts accounted 2,046,702.72 9.75 1,990,680.02 97.26 2,702,706.37 14.96 2,605,867.10 96.42
individually
Total 20,984,744.74 100.00 10,460,483.91 — — 18,060,567.41 — — 11,013,213.02 100.00
(2) Aging analysis
30 Jun 2012 1 Jan 2012
Ages
Balance Proportion (%) Bad debts Balance Proportion (%) Bad debts
Within 1 year 9,451,951.67 84.57 189,039.03 6,285,843.87 82.74 125,674.50
1-2 years 583,298.03 5.22 29,164.90 115,202.15 1.52 5,760.11
2-3 years 108,000.00 0.97 10,800.00 106,000.00 1.40 10,600.00
3-4 years 101,500.00 0.91 20,300.00 136,500.00 1.80 27,300.00
4-5 years 35,000.00 0.31 10,500.00 0.00 0.00 0.00
Over 5 years 896,584.72 8.02 448,292.36 952,607.42 12.54 476,303.71
Total 11,176,334.42 100.00 708,096.29 7,596,153.44 100.00 645,638.32
(3) The top five debtors’ending total balance. Details are as follows:
Relationship Proportion of total
with Owned
Name Ages accounts receivable
amount
the company (%)
Hainan racing entertainment Co.,
Unrelated Client 2,406,158.00 over 5 years 11.47
LTD
Hainan Baoping company Unrelated Client 2,218,494.43 over 5 years 10.57
Hainan centaline property agency Unrelated Client 2,090,069.77 over 5 years 9.96
Hainan dragon film studio Unrelated Client 1,046,985.40 over 5 years 4.99
Within 1
Xinhe company Unrelated Client 1,591,137.00 7.58
year
total 9,352,844.60 44.57
(4) At the end of this reporting period, none of the amount of accounts receivable was owed to related
parties.
3. Prepayments
45
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
(1) Aging analysis
30 Jun 2012 1 Jan 2012
Ages
Balance Proportion (%) Balance Proportion (%)
Within 1 year 99,204,539.63 65.22 23,848,719.79 31.05
1-2 years 50,311,663.59 33.08 50,367,143.59 65.58
2-3 years 670,741.57 0.44 667,741.57 0.87
Over 3 years 1,920,179.94 1.26 1,920,179.94 2.50
Total 152,107,124.73 100.00 76,803,784.89 100.00
(2) Top five units of prepayments
Company’ Name Relationship Amounts Ages Unsettled reason
Heilongjiang Province Mudanjiang Forestry Unrelated Within 1
64,012,914.67 The project is not complete yet.
Engineering Company Client year
Haikou Hongzhou Real Estate Development Unrelated Pre-paid property purchase
50,000,000.00 1-2 years
Co., Ltd Client payment
Unrelated Within 1
Dahailin Forestry Bureau 5,076,469.00 The project is not complete yet.
Client year
Unrelated Within 1
Longshi Artist Management Co., Ltd 4,500,000.00 The project is not complete yet.
Client year
China Construction Bank Corporation Unrelated Within 1 Consulting service is not reach
2,000,000.00
Mudanjiang branch Client year the deadline
Total 125,589,383.67
Note: The 50 million Yuan prepayment made to the Haikou Hongzhou Real Estate Development Company was the payment required by the contract of
‘supplementary agreement of the implementation of the 3 rd phase of Longzhu project’Under this contract, the company is obliged to make the payment
of RMB 50 million Yuan after the completion of the 150,000 square office building. In addition to that, the Company has signed another ‘guarantee
contract’with Hainan Hongzhou Real Estate Group Co.,Ltd, which is the parent company of the Haikou Hongzhou Real Estate Development company.
Based on this contract, the Group will use its own land and property as security.
（3）The yearend balance did not contain any debt owned by major shareholders who own more than 5% of the Company’ share
capital.
4. Dividends receivable
(1) Details of dividends receivable
Items Jan 1, 2012 Increment Decrement Jun 30, 2012
Hainan Pearl River
260,015.00 260,015.00
Guanzhuang Co., Ltd.
Total 260,015.00 260,015.00
(2) Dividends receivable exceed one year
Ending Impairment
Invested company Age Reason
balance loss
Hainan Pearl River Guanzhuang Co., The investee confronts the problem of tight
3-4years 260,015.00 None
Ltd. budget.
46
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Ending Impairment
Invested company Age Reason
balance loss
Total 260,015.00
5. Other receivables
(1) Others receivable listed by categories
Dec 31, 2011 Jan 1, 2011
Bad Debt Bad Debt
Categories Amounts Amounts
Provision Provision
Ratio Ratio Ratio Ratio
Amounts Amounts Amounts Amounts
(%) (%) (%) (%)
1. Significant others receivable and bad debts 25,978,479.90 9.99 25,978,479.90 100.00 25,978,479.90 7.38 25,978,479.90 100.00
accounted individually
2. Bad debt accounted by the combinations
Age Combinations 259,916,039.86 88.23 8,220,657.02 3.16 319,808,779.78 90.90 16,072,774.33 5.03
Combined Subtotal 259,916,039.86 88.23 8,220,657.02 3.16 319,808,779.78 90.90 16,072,774.33 5.03
3. Other unimportant receivables but bad 5,190,360.03 1.78 3,963,362.46 76.36 6,041,420.44 1.72 4,675,833.77 77.40
debts accounted individually
Total 291,084,879.79 38,162,499.38 351,828,680.12 46,727,088.00
Note: Details about related party’ transaction refer to ‘Notes VI. 5. (3)’
(2) Aging analysis
30 Jun 2012 1 Jan 2012
Ages
Balance Proportion (%) Bad debts Balance Proportion (%) Bad debts
Within 1 year 218,038,384.87 83.90 4,360,767.70 261,835,652.15 81.87 5,236,713.04
1-2 years 37,682,403.52 14.50 1,884,120.18 40,231,432.94 12.58 2,011,571.65
2-3 years 3,274.13 0.00 327.41 5,838.21 0.00 583.82
3-5 years 345,407.22 0.13 69,081.44 212,234.27 0.07 62,094.70
4-5 years 84,623.86 0.03 25,387.16 0.00 0.00 0.00
Over 5 years 3,761,946.26 1.44 1,880,973.13 17,523,622.21 5.48 8,761,811.12
Total 259,916,039.86 100.00 8,220,657.02 319,808,779.78 100.00 16,072,774.33
（3）Top five units of others receivable
Relationship with Proportion of total
Name Owned amount Ages
the company Other receivable (%)
Public Investment Co., Ltd Unrelated Party 143,000,000.00 1-2 year 49.13
Beijing Kangtai Xingye Investment Co.,Ltd Unrelated Party 60,000,000.00 Within 1 year 20.61
Within 1
year:
1,091,553.34
Hainan Pearl River Guanzhuang Co., Ltd. Unrelated Party 7,535,831.68 yuan 2.59
1-2 years:
6,444,278.34
yuan
Shenzhen Yinxiang Computer Co., Ltd Unrelated Party 6,482,625.00 Over 5 years 2.23
47
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Yuehai Railway Co., Ltd Unrelated Party 6,000,000.00 Within 1 year 2.06
Note: On 3rd January 2011, the proposal of ‘the private railway sidings for Mulin town as well as coal wholesale market construction
cooperation project’was signed between Public Investment Co., Ltd and the Company. On 28th June 2011, the project supplementary
agreement was signed, which stipulates the joint investment of the the private railway sidings for Mulin town as well as coal
wholesale market construction project. Under the agreement, staged financing is required from both parties while the upper limit
investment amount for the Pearl River Holding is RMB140 million. With regard to the project income distribution, the company
enjoys a 60% of the return while the partner enjoys the rest 40% during the transition period. Once the transition period ends, the
Company has the priority to choose whether or not to participate in the operating management and enjoying earnings through
ownership investment. If the Company chooses to quit the project investment, the Public Investment Corporation must promise an
annual investment return no less than 18% of the aggregate investment. Consistent with agreement, the Company has already made
the payment of RMB 140 million to the designated account of the Public Investment Corporation. The Beijing branch investment &
consultation firm which belongs to the Company will supervise the use of the funds all the way from the project approval,
construction to project management. On 28th June 2012, the company has signed the additional proposal that add investment of RMB
15 million.
On 18th July 2011, the Company has signed a cooperation proposal together with Beijing Kangtai Xingye Investment Co., Ltd and
the natural person, Lijun Gu. Under the proposal, a project company will be co-founded by the capital rejection of RMB70 million
from the natural person and the capped capital contribution of RMB 64 million from the Company. That is, the natural person, Lijun
Gu holds an equity stake of 60%, the Company occupied 40%. The project company is responsible for the development and sales of
the iron and ore resources at Dujiawan magnetite iron ore and Zhaojiayuan iron ore located at Shiyan city, Hubei province. The
company has already made a payment of RMB 60 million to the designated account of Beijing Kangtai Xingye Investment Company.
Lijun Gu and the Beijing Kangtai Xingye Investment Company uses their respective 70% ownership holding rights in Yuxi
Shengying mining industry limited liability company as the pledged collateral to the Company.
6. Inventories
(1) Inventories category
Jun 30, 2012 Jan 1, 2012
Items Provision for Provision for
Ending Balance Book value Ending Balance Book value
Inventory Inventory
Raw materials 1,922,566.34 1,922,566.34 4,232,624.93 4,232,624.93
Low-value
consumption 2,328,187.70 2,328,187.70 880,919.41 880,919.41
goods:
48
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Jun 30, 2012 Jan 1, 2012
Items
Provision for Provision for
Ending Balance Book value Ending Balance Book value
Inventory Inventory
Finished goods 213,277.66 213,277.66 309,086.29 309,086.29
Constructing
development 53,094,072.07 53,094,072.07 51,135,927.01 51,135,927.01
product
Development
72,421,046.07 22,156,987.01 50,264,059.06 83,686,150.88 22,156,987.01 61,529,163.87
products
Total 129,979,149.84 22,156,987.01 107,822,162.83 140,244,708.52 22,156,987.01 118,087,721.51
(2) Inventories impairment provision
Decrement
Items 1 Jan 2012 Increment 30 Jun 2012
Transfer back Write off
Development product 22,156,987.01 22,156,987.01
Total 22,156,987.01 22,156,987.01
Note: For this reporting period, the 5th floor of skirt building in Pearl River Square has been rented out to the public. The
development products were categorized into investment real estate and the corresponding impairment was transferred into the
investment real estate.
7. Available for sales financial assets
Available for sales financial assets listed by categories
Items Fair value at Jun 30,2012 Fair value at Jan 1,2012
Available for sales equity instrument 354,896,490.00 286,947,500.00
Total 354,896,490.00 286,947,500.00
Note: The Company holds 31,379,000 shares of stock of Southwest Securities. The yearend book value is RMB 40,071,101.92 while
the market price is RMB 11.31 per share.
8. Joint investment and joint venture investment
Joint venture investment
Percentage of Percentage of
Registration Business Registered vote right
Name Nature legal representative equity
address Character capital
interest（%） （%）
Sanya Wanjia Limited Entertainment
Enterprises Holding Sanya, Hainan Qing Zheng 100,000,000.00 40 40
liability Service
Co., Ltd
Beijing Found Vision Limited Entertainment
Beijing Qing Zheng 3,000,000.00 49 49
Media Co., Ltd. liability Service
Beijing Sunshine
Tiansheng Property Limited Property
Beijing Qing Zheng 5,000,000.00 30 30
Management Co., liability Management
Ltd.
49
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Ending Balance
Ending Balance of Ending Balance Operating
Name of Total Net profit
Total Assets of Net Assets Income
Liabilities
Sanya Wanjia Enterprises Holding Co.,
93,928,624.52 1,121,512.74 92,807,111.78 -1,073,660.71
Ltd
Beijing Found Vision Media Co., Ltd. 3,000,000.00 3,000,000.00
Beijing Sunshine Tiansheng Property
9,958,804.67 5,601,091.95 4,357,712.72
Management Co., Ltd.
9. Long-term Equity Investment
Percentage
Percentage of of vote Impairment loss Current
Name Accounting Initial investment Beginning Balance Increase or Ending Balance equity interest
right impairme
Method Cost decrease provision
（%） nt loss
（%）
Sanya Wanjia Enterprises Holding Co.,
Ltd. Equity Method 40,000,000.00 37,552,309.00 -429,464.28 37,122,844.72 40 40
Beijing Found Vision Media Co., Ltd. Equity Method 1,470,000.00 1,470,000.00 1,470,000.00 49 49
Beijing Sunshine Tiansheng Property Equity Method 1,500,000.00 1,427,948.31 1,427,948.31 30 30
Management Co., Ltd.
Subtotal for Equity Method 42,970,000.00 40,450,257.31 -429,464.28 40,020,793.03
Hainan Pearl River Guanzhuang Co., Cost Method 426,315.00 426,315.00 426,315.00 1.33 1.33
Ltd
Hainan Tongsheng Ports Co., Ltd Cost Method 6,000,000.00 6,000,000.00 6,000,000.00 15 15 6,000,000.00
Hainan Chamber of Commerce Cost Method 500,000.00 500,000.00 500,000.00 6.67 6.67 500,000.00
Network Science and Technology Cost Method 10,000,000.00 10,000,000.00 10,000,000.00 10 10 10,000,000.00
Investment Co.
Hainan Huadi Pearl River Foundation Cost Method 160,000.00 160,000.00 160,000.00 2 2
Engineering Co., Ltd.
Guangzhou Pearl River Investment Cost Method 18,177,240.29 18,177,240.29 18,177,240.29 9.4785 9.4785 7,352,245.39
Management Co., Ltd
Hainan Nanyang Shipping Industrial Cost Method 1,680,000.00 1,680,000.00 1,680,000.00 1,680,000.00
Company Limited
Subtotal for Cost Method 36,943,555.29 36,943,555.29 0.00 36,943,555.29 25,532,245.39
Total 79,913,555.29 77,393,812.60 -429,464.28 76,964,348.32 25,532,245.39
10. Investment real estates
Items 1 Jan 2012 Increment Decrement 30 Jun 2012
I. Original value 34,458,642.70 322,062.78 34,136,579.92
Buildings and structures 34,458,642.70 322,062.78 34,136,579.92
II. Accumulated depreciation and amortization 4,289,468.35 584,729.27 62,621.88 4,811,575.74
Buildings and structures 4,289,468.35 584,729.27 62,621.88 4,811,575.74
III. Impairment provision 3,432,927.60 3,432,927.60
Buildings and structures 3,432,927.60 3,432,927.60
IV. Book value 26,736,246.75 25,892,076.58
Buildings and structures 26,736,246.75 25,892,076.58
Note: The corresponding depreciation costs for this reporting period was RMB 584,729.27 Yuan.
11. Fixed assets
50
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Items 1 Jan 2012 Increment Decrement 30 Jun 2012
I. Original value 444,369,015.01 22,216,547.65 184,530.00 466,401,032.66
Buildings & Houses 313,703,207.36 12,208,000.00 325,911,207.36
Motor Vehicle 27,968,677.63 6,552,418.00 184,530.00 34,336,565.63
General equipment 52,208,111.09 10,700.00 52,218,811.09
Other equipments 50,489,018.93 3,445,429.65 53,934,448.58
II. Accumulated
depreciation 111,457,402.65 13,997,510.66 177,607.26 125,277,306.05
Buildings & Houses 44,613,906.30 5,950,603.19 50,564,509.49
Motor Vehicle 11,238,685.63 2,166,750.27 175,303.50 13,230,132.40
General equipment 26,380,113.59 1,643,167.47 28,023,281.06
Other equipments 29,224,697.13 4,236,989.73 2,303.76 33,459,383.10
III. Impairment provision 7,499,295.92 7,499,295.92
Buildings & Houses 7,499,295.92 7,499,295.92
Motor Vehicle
General equipment
Other equipments
IV. Book value 325,412,316.44 22,216,547.65 14,004,433.40 333,624,430.69
Buildings & Houses 261,590,005.14 12,208,000.00 5,950,603.19 267,847,401.95
Motor Vehicle 16,729,992.00 6,552,418.00 2,175,976.77 21,106,433.23
General equipment 25,827,997.50 10,700.00 1,643,167.47 24,195,530.03
Other equipments 21,264,321.80 3,445,429.65 4,234,685.97 20,475,065.48
Note: The depreciation cost of this period was RMB13,997,510.66 Yuan.
12. Construction in progress
30 Jun 2012 1 Jan 2012
Project name
Impairment loss Impairment loss
Ending Balance Book value Ending Balance Book value
provision provision
Lake Hotel 4,742,000.00 4,742,000.00
Expansion project of
96,000.00 96,000.00 96,000.00 96,000.00
Xuxiang
River side Staff
5,530,613.30 5,530,613.30 788,613.30 788,613.30
Residence
Little Train 550 5,648,964.09 5,648,964.09 5,648,964.09 5,648,964.09
Earlier stage of Xuxiang
2,194,595.49 2,194,595.49 2,194,595.49 2,194,595.49
Project
Little Train 400 4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00
Electronic project of
80,000.00 80,000.00
acting tent
Studio project of Er’long
909,000.00 909,000.00 149,000.00 149,000.00
Mountain
Forest Park area projects 450,000.00 450,000.00 250,000.00 250,000.00
Diesel generator sets 755,425.00 755,425.00
51
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
30 Jun 2012 1 Jan 2012
Project name
Impairment loss Impairment loss
Ending Balance Book value Ending Balance Book value
provision provision
Ski slope 360,000.00 360,000.00
Fire facilities of staff
20,000.00 20,000.00
residence
Dapengshan house 680,000.00 680,000.00
Snow Village centralized
154,800.00 154,800.00
heating stations
Total 20,799,397.88 20,799,397.88 17,949,172.88 0.00 17,949,172.88
13. Engineering Materials
Items 1 Jan 2012 Increment Decrement 30 Jun 2012
Special equipment 606,206.60 606,206.60
Total 606,206.60 606,206.60
14. Intangible assets
Items 1 Jan 2012 Increment Decrement 30 Jun 2012
I. Original value 38,511,442.93 169,921.00 38,681,363.93
Software 1,584,757.28 169,921.00 1,754,678.28
Land use right 35,535,285.65 35,535,285.65
Zhenghe membership of Sanya Hongzhou
International 480,000.00 480,000.00
Yacht Club
Golf membership of Nanli Lake 911,400.00 911,400.00
II.Accumulative amortization 5,041,492.96 584,381.87 5,625,874.83
Software 494,796.17 123,281.73 618,077.90
Land use right 4,502,283.87 450,851.00 4,953,134.87
Zhenghe membership of Sanya Hongzhou
International 44,412.92 10,249.14 54,662.06
Yacht Club
Golf membership of Nanli Lake
III. Total impairment loss provision 911,400.00 911,400.00
Golf membership of Nanli Lake 911,400.00 911,400.00
IV. Carrying amount 32,558,549.97 —— —— 32,144,089.10
Software 1,089,961.11 —— —— 1,136,600.38
Land use right 31,033,001.78 —— —— 30,582,150.78
Zhenghe membership of Sanya Hongzhou
International 435,587.08 —— —— 425,337.94
Yacht Club
Golf membership of Nanli Lake —— ——
Note: 1. The amortization of this year is 584,381.87 Yuan.
2. The yearend land use right used as mortgage or collateral holds a book value of 28,812,252.58Yuan. More details are
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
explained at “Note V.18”
15. Long-term prepayments
Items 1 Jan 2012 Increment Amortization Other decrements 30 Jun 2012
Decoration 4,756,538.62 548,000.00 476,230.57 4,828,308.05
Ski rental fee 4,800,000.00 450,000.00 4,350,000.00
Technical service
513,329.33 70,002.00 443,327.33
fee
Guarantee fee and
2,634,500.00 251,571.44 2,382,928.56
other
Total 10,069,867.95 3,182,500.00 1,247,804.01 12,004,563.94
16. Deferred income tax asset and deferred income tax liability
(1) Identified deferred income tax liability
Items 30 Jun 2012 1 Jan 2012
Deferred income tax liability： 67,653,941.30 49,347,638.80
Changes on the fair value of available for sales financial assets
66,601,927.50 48,295,625.00
credited to capital reserves
Difference between fair value and the book value of net assets
1,052,013.80 1,052,013.80
of purchased unit as business combination
(2) Unrecognized deferred income tax asset
Items 30 Jun 2012 1 Jan 2012
Deductible temporary differences 108,155,839.21 117,273,156.94
Deductible losses 60,308,135.29 48,796,714.62
Total 168,463,974.50 166,069,871.56
17. Assets impairment provision
Decrement
Items 1 Jan 2012 Increment 30 Jun 2012
Other
Transfer back Write off
Decrement
Bad debt provision 57,740,301.02 9,117,317.73 48,622,983.29
Inventories impairment provision 22,156,987.01 22,156,987.01
long-term equity investment impairment provision 25,532,245.39 25,532,245.39
Investment property impairment provision 3,432,927.60 3,432,927.60
Fixed assets impairment provision 7,499,295.92 7,499,295.92
Intangible assets impairment provision 911,400.00 911,400.00
Total 117,273,156.94 9,117,317.73 108,155,839.21
18. Assets with restricted ownership
Items Assets name Amount Remark
53
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Items Assets name Amount Remark
1.Fixed assets
It has been mortgaged to the Bank of China
Main Building of Days Hotel &
Buildings & Houses 180,679,361.31 Hainan Yeshumeng branch for loan 110 million
Suites Sanya Resort
Yuan (Contract No.G004-1).
It has been mortgaged to the Bank of China
Buildings & Houses Hotel Villa A, B & C 8,494,100.79 Hainan Yeshumeng branch for loan 110 million
Yuan (Contract No.G004-1).
It has been mortgaged to Haikou Haikong
Buildings & Houses 594,831.29 Micrio-credit Loans Co., Ltd. for loan 25 million
Building of Longzhu ,22nd floor loan.
It has been mortgaged to Haikou Haikong
Buildings & Houses Building of Longzhu , third floor 548,300.23 Micrio-credit Loans Co., Ltd. for loan 25 million
of the northeast side loan.
It has been mortgaged to Haikou Haikong
Buildings & Houses Building of Dihao ,29 th floor 4,249,050.74 Micrio-credit Loans Co., Ltd. for loan 25 million
loan.
It has been mortgaged to Haikou Haikong
Buildings & Houses the 5th floor of the west side of 7,744,632.23 Micrio-credit Loans Co., Ltd. for loan 25 million
skirt building in Pearl River Square loan.
It has been mortgaged to Haikou Haikong
Development
1,048,080.60 Micrio-credit Loans Co., Ltd. for loan 25 million
products
Building of Longzhu ,21st floor loan.
It has been mortgaged to the Construction Bank
Buildings & Houses Main Building of Hailin wanjia 46,599,757.60 of China Mudanjiang branch for loan 110 million
snow village vacation hotel Yuan.
Development Zhujiang square F3;Building of It has been mortgaged toWang xiaodong for loan 6
3,775,954.85
products Dijing, 6th floor million Yuan.
2.Intangible assets
It has been mortgaged to the Bank of China
Main Building of Days Hotel &
Land use rights 26,084,548.64 Hainan Yeshumeng branch for loan 110 million
Suites Sanya Resort
Yuan (Contract No.G004-2).
It has been mortgaged to the Bank of China
Land use rights Hotel Villa A, B & C 1,576,872.42 Hainan Yeshumeng branch for loan 110 million
Yuan (Contract No.G004-2).
Main Building of Hailin wanjia It has been mortgaged to the Construction Bank
Land use rights snow village vacation hotel and 1,150,831.52 of China Mudanjiang branch for loan 110 million
Staff quarters Yuan.
3. Pledged assets
It has been mortgaged to chongqin Province Trust
Available for sales 3.325 millions Shares of Southwest
336,472,500.00 Co., Ltd. for the loan of 220 million Yuan
financial assets Security
(Contract No. JLXT2009A018).
Total 619,018,822.22
Note: Assets with restricted ownership are mainly used for guarantee of bank loans.
19. Short-term loan
1. Short-term loan disclosed by categories
Category 30Jun2012 1 Jan 2012
Guaranteed loans 45,000,000.00
Pledge loans 210,000,000.00
Mortgage loans 25,000,000.00
Total 235,000,000.00 45,000,000.00
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
20. Accounts payable
Jun 30, 2012 Jan 1, 2012
Ages
Ending Balance Percentage (%) Opening Balance Percentage (%)
Within 1 year 6,384,333.17 27.81 6,366,825.29 28.14
1 to 2 years 8,055,630.24 35.09 8,478,035.44 37.47
2 to 3 years 54,184.80 0.24 52,270.02 0.23
3 years and more 8,459,911.35 36.86 7,727,851.60 34.16
Total 22,954,059.56 100.00 22,624,982.35 100.00
Note: The end of this reporting period did not contain debt owned by any major shareholders who own more than 5% of the
Company’ share capital. And there were no related parties involved for the final balance.
21. Accounts received in advance
Jun 30, 2012 Jan 1, 2012
Ages
Ending Balance Percentage (%) Opening Balance Percentage (%)
Within 1 year 7,855,312.49 87.48 18,272,805.52 93.44
Over 1 year 1,124,494.11 12.52 1,283,869.38 6.56
Total 8,979,806.60 100.00 19,556,674.90 100.00
Note:The end of this reporting period did not contain debt owned by any major shareholders who own more than 5% of the
Company’ share capital. And the yearend balance excluded any related party.
22.Accrued payroll
Items Jan 1, 2012 Increment Decrement Jun 30, 2012
I. Salary, bonus, allowance 1,935,954.85 43,500,306.58 44,203,687.28 1,232,574.15
II. Employee Welfare expenses 5,193,379.61 5,496,707.55 -303,327.94
III. Social insurance 5,373,291.53 5,373,291.53
Where:1)Medical insurance 1,414,814.87 1,414,814.87
2)Supplementary medical insurance
3) Endowment insurance 3,410,130.42 3,410,130.42
4)annuity
5) Unemployment insurance 351,537.48 351,537.48
6) Working accident insurance 102,444.80 102,444.80
7) Maternity insurance 94,363.96 94,363.96
IV. Housing accumulation fund 591,834.71 591,834.71
V. Labor union fees& Employee education fees 4,973,974.16 1,098,644.91 440,361.62 5,632,257.45
VI. Non-monetary welfares
VII. Compensation for dismissal
VIII.Others
Total 6,909,929.01 55,757,457.34 56,105,882.69 6,561,503.66
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
23. Taxes payable
Items Jun 30, 2012 Jan 1, 2012
VAT -226,077.82
Individual income tax 44,513.66 93,214.78
City construction and maintenance tax 88,405.22 78,133.99
Corporate income tax 1,134,149.14 3,257,663.34
Property tax 776,172.99 159,789.20
Business tax 712,392.97 800,387.80
Land use tax 79,762.62 10,507.33
Increment tax on land value 725,576.41 -823,648.69
Educational surtax -94,127.14 -64,539.01
Others 180,852.71 69,590.69
Total 3,421,620.76 3,581,099.43
24. Interest payable
Item Jun 30, 2012 Jan 1, 2012
Long-term loan 6,991,111.11
Short-term loan 4,962,055.57
Company loan 90,780,670.67 82,084,001.78
Entrusted loan 10,449,888.49 10,449,888.49
Others 176,133.00 176,133.00
Total 106,368,747.73 99,701,134.38
Note: Details refer to Note VI.4.
25. Dividend payable
Investor Jun 30, 2012 Jan 1, 2012
Dividend payable of institutional shares 3,213,302.88 3,213,302.88
Total 3,213,302.88 3,213,302.88
Note: The listed dividend payable was generated from previous years but has been unable to reach the relevant creditorswhose details
have not been retained.
26. Other payables
Jun 30, 2012 Jan 1, 2012
Age
Ending Balance Percentage (%) Opening Balance Percentage (%)
Within 1 year 96,717,517.52 26.87 80,879,156.75 23.15
1 to 2 years 13,448,724.72 3.74 13,909,907.32 3.98
2 to 3 years 112,223,963.27 31.18 115,919,765.06 33.18
3 years and more 137,538,164.76 38.21 138,626,774.20 39.69
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Jun 30, 2012 Jan 1, 2012
Age
Ending Balance Percentage (%) Opening Balance Percentage (%)
Total 359,928,370.27 100.00 349,335,603.33 100.00
Note 1: Among the balance of the period end, there are loans of shareholders holdingover 5% of the Company’ equity (including 5%).
Details refer to “Notes VI. Related party relationship and transactions”
2: Other payables over 3 years are mainly caused by the loan from the shareholders. Details refer to “Notes VI.Related party
relationship and transactions”
27. Non-current liabilities due within one year
1. Disclose by category
Category Jun 30, 2012 Jan 1, 2012
Long-term loans due within one year 12,000,000.00 232,000,000.00
Total 12,000,000.00 232,000,000.00
2. Details related to long-term loans due within one year
Category Jun 30, 2012 Jan 1, 2012
Pledge loans 220,000,000.00
Mortgage loans 12,000,000.00 12,000,000.00
Total 12,000,000.00 232,000,000.00
28. Long-term borrowings
1. Long-term borrowings listed by categories
Category Jun 30, 2012 Jan 1, 2012
Pledge loans 220,000,000.00
Mortgage loans 203,000,000.00 93,000,000.00
Less: Long-term loans due within one year 12,000,000.00 232,000,000.00
Total 191,000,000.00 81,000,000.00
2. Loan details
Loan staring
Lender Loan due date Currency Interest rate (%) Jun 30, 2012 Jan 1, 2012
date
Chongqing
International 2010-9-29 2012-3-28 RMB 13% 220,000,000.00
Trust Co., Ltd
Bank of China, 10%
Haikou upward-floating
2009-8-2 2009-8-2 RMB 93,000,000.00 93,000,000.00
Yeshumen of benchmark
Branch interest rate
Construction 10%
Bank of China upward-floating
2012-1-12 2019-1-11 RMB 110,000,000.00
Mudanjiang of benchmark
Branch interest rate
Total 203,000,000.00 313,000,000.00
57
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
3. Mortgage loan details
Lender Loan amount Mortgagor/mortgage
There properties owned by SanyaWanjia
Bank of China, Haikou Yeshumen Branch 93,000,000.00
Hotel Management Co., Ltd
There properties owned by ailin Wanjia
Construction Bank of China Mudanjiang
110,000,000.00 Snowtown Holiday Hotel Management Co.,
Branch
Ltd.
Total 203,000,000.00
29. Share capital
Unit: share
Increment or decrement (+,-)
Items Jan 1, 2012 issued Jun 30, 2012
Bonus Surplus
new others subtotal
issue converted
shares
1. Unlisted
1,325,131.00 1,325,131.00
shares
State owned shares
Other domestic shares 1,325,131.00 1,325,131.00
Including:Domestic
1,299,500.00 1,299,500.00
corporate shares
Domestic natural
25,631.00 25,631.00
person shares
2.Listed shares 425,420,273.00 425,420,273.00
A shares 360,445,273.00 360,445,273.00
B shares 64,975,000.00 64,975,000.00
3. Total shares 426,745,404.00 426,745,404.00
30. Capital surplus
Items Jan 1, 2012 Increment Decrement Jun 30, 2012
Capital reserve spill
224,960,139.16 224,960,139.16
price
Others capital
305,491,516.81 87,271,040.00 35,239,078.41 357,523,478.40
surplus
-Including: Old
capital surplus 109,300,017.82 109,300,017.82
converted into
-Changes on fair
value of available for 196,191,498.99 87,271,040.00 35,239,078.41 248,223,460.58
sales financial assets
Total 530,451,655.97 87,271,040.00 35,239,078.41 582,483,617.56
Note: The closing balance is lower than the opening balance was caused by the fall of fair value of the Southwest Securities（600369）
holding by the company.
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
31.Surplus reserves
Items Jun 30, 2012 Jan 1, 2012
Statutory surplus reserve 71,852,236.46 71,852,236.46
General surplus reserve 37,634,827.93 37,634,827.93
Total 109,487,064.39 109,487,064.39
32. Undistributed profits
Items Amounts allocation proportion
Non-adjusted ending balance of the year 2010 -693,679,376.16
Adjusted opening balance of the year 2011
Add: Net profit attributed to the owners of the parent
-37,734,798.44
company
Less：Statutory surplus reserve
Random surplus reserve
Common risk provision
Dividend payable of Ordinary shares
Share capital converted from dividend of ordinary
shares
Undistributed profit at the end of period -731,414,174.60
Note: Details of opening balance adjustment refer to ‘Notes II’
33. Operating income and operating costs
(1) Operating income
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Main operating business income 106,738,188.00 143,171,323.23
Other operating business income 1,603,768.20 1,121,450.50
Total 108,341,956.20 144,292,773.73
(2) Operating costs
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Main operating business costs 74,091,449.93 85,952,467.39
Other operating business costs 877,705.99 564,858.90
Total 74,969,155.92 86,517,326.29
(3) The details of main operating businesses were as follows according to products:
Jan.–Jun, 2012 Jan.–Jun, 2011
Items Main operating business Main operating Main operating business Main operating
income business costs income business costs
Real estate sales 22,880,211.00 11,265,104.81 68,096,461.00 31,912,697.53
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Jan.–Jun, 2012 Jan.–Jun, 2011
Items Main operating business Main operating Main operating business Main operating
income business costs income business costs
Property management
52,229,168.34 47,199,383.70 47,653,910.37 42,568,319.24
services
Tourist hotel services 31,628,808.66 15,626,961.42 27,420,951.86 11,471,450.62
(4) The details of main operating businesses were as follows according to regions:
Jan.–Jun, 2012 Jan.–Jun, 2011
Location Main operating business Main operating business Main operating business Main operating business
income costs income costs
Hubei 23,204,485.40 11,545,548.88 68,574,907.40 32,218,287.12
Heilongjiang 10,655,348.89 5,768,063.03 6,148,280.45 1,962,735.76
Hainan 71,616,099.07 56,766,608.22 68,392,893.88 51,771,444.51
Shanghai 1,262,254.64 11,229.80 0
Beijing 55,241.50
Total 106,738,188.00 74,091,449.93 143,171,323.23 85,952,467.39
The income attributable to top five clients amounted to 8,945,296 and accounted for 8.26% of total operating income.
34. Operating taxes and extras
Jan.–Jun, 2012 Jan.–Jun, 2011
Items
City construction and maintenance tax 379,196.85 505,024.71
Education fee 162,512.93 216,439.16
Business tax 5,417,097.82 7,214,638.69
Land value-added tax 2,557,474.78 7,987,739.47
Others 391,645.17 1,199,456.18
Total 8,907,927.55 17,123,298.21
35. Operating expenses
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Payroll expense 1,807,759.95 240,853.40
Hotel operating expense 710,022.24 48,131.28
Consignment commission charge 322,782.00 1,538,959.00
Advertising fees 414,620.00 1,076,986.47
other selling expenses 1,624,473.92 688,663.97
合计 4,879,658.11 3,593,594.12
36.General and administrative expenses
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Payroll expense 11,394,069.64 7,984,473.37
60
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Depreciation expense 13,526,583.63 12,828,475.31
Business entertainment 5,618,596.22 4,066,233.01
Taxation expenses 1,382,836.82 1,146,025.24
Other expenses 21,078,505.99 13,696,228.3
Total 53,000,592.30 39,721,435.23
37. Financial expenses
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Interest exchange 30,404,530.84 30,895,882.28
Less: interest revenue 3,116,505.15 25,366,137.33
Foreign exchange loss
Less: exchange gain
Others 1,778,709.57 226,094.41
Total 29,066,735.26 5,755,839.36
38. Investment income
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Long-term equity investment income accounted by Costs Method
Long-term equity investment income accounted by Equity Method -429,464.28 -404,815.92
Investment income of disposal Long-term equity investment 18,542,755.18
Others
Total 18,113,290.90 -404,815.92
39. Impairment Loss of Assets
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Bad debts impairment loss -9,117,317.73 169,332.30
Inventories impairment loss
Total -9,117,317.73 169,332.30
40. Non-operating income
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Gain on disposal of non-current assets 60,773.50 790.00
Gains on debt restructure
Others 12,116.00 429,596.00
Total 72,889.50 430,386.00
41.Non-operating expenses
61
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Jan.–Jun, 2012 Jan.–Jun, 2011
Items
15,200.25
Loss on disposal of fixed assets
110,000.00
Donation
22,327.09
Fine expenditures
16,353.94 30,143.18
Others
Total 126,353.94 67,670.52
42. Income tax
Jan.–Jun, 2012 Jan.–Jun, 2011
Items
5,433,288.59
1,777,028.96
Income tax this year
Deferred income tax
Total 1,777,028.96 5,433,288.59
43. Earnings per share and diluted earnings per share calculation procedure
Item Code Jan.–Jun,
Jan.–Jun, 2012 2011
Net profits that belong to the common shareholders during
P0 -37,734,798.44 -15,041,866.11
the reporting period
Extraordinary profits and losses that belong to the common
A 21,302,845.34 19,971,411.45
shareholders during the reporting period
Net profits that belong to the common shareholders during
the reporting period after taking off the effect of P1=P0-A -59,037,643.78 -35,013,277.56
extraordinary profits and losses
Total number of shares of opening balance S0 426,745,404.00 426,745,404.00
Incremental shares caused by the transfer of surplus to share
capital or stock dividend distribution during the reporting S1
period
Incremental shares caused by issuing new shares or
Si
debt-equity conversion
Number of shares increased from the next month until the
Mi
end of the reporting period
Number of shares reduced caused by repurchasing during
Sj
the reporting period
Number of shares reduced from the next month until the
Mj
end of the reporting period
Shrinking number of shares during the reporting period Sk
Total months during the reporting period M0 6.00 12.00
S=S0+S1+Si*Mi/M0
The weighted average of the common stock issued 426,745,404.00 426,745,404.00
-Sj*Mj/M0-Sk
Earnings per share before taking off extraordinary profits
Y1=P0/S -0.09 -0.04
and losses
62
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Item Code Jan.–Jun,
Jan.–Jun, 2012 2011
Earnings per share after taking off extraordinary profits
Y2=P1/S -0.14 -0.08
and losses
The weighted average of the incremental common stocks
C
caused by warrants, stock options, and convertible bonds
The effects on the net profits that belong to the common
B1
shareholders imposed by dilution issues
The effects on the net profits that belong to the common
shareholders after taking off the impacts of extraordinary B2
profits and losses imposed by dilution issues
Diluted earnings per share before taking off the effect of
extraordinary profits and losses Y3=(P0+B1)/(S+C) -0.09 -0.04
Diluted earnings per share after taking off the effect of
Y4=(P1+B1+B2)/(S+C) -0.14 -0.08
extraordinary profits and losses
44. Other consolidated income
Jan.–Jun, 2012 Jan.–Jun, 2011
Items
Profits and losses generated by available for sale
83,946,040.00 7,980,000.00
financial assets
Deduce: income tax impacts caused by available for
20,986,510.00 1,995,000.00
sale financial assets
Pre-recorded in other comprehensive income into net
10,927,568.41
profit or loss
Total 52,031,961.59 5,985,000.00
45. Information of cash flow statement
(1) Cash received relating to other operating activities
Jan.–Jun, 2012 Jan.–Jun, 2011
Items
2,180,088.38
Reserve fund returned from staffs
3,972,486.91 8,127,655.00
Utility Bills
2,032,070.92 6,052,453.87
Other monetary exchanges between enterprises
48,380.88
Interest income
2,880,541.53 2,957,305.80
Others
11,113,568.62 17,137,414.67
Total
(2) Cash paid relating to other operating activities
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Jan.–Jun, 2012 Jan.–Jun, 2011
Items
Other monetary exchanges between
3,688,582.67 17,326,696.00
enterprises
Business entertainment fees 3,278,424.16
Business travel expenses 1,951,009.89
Advertising expenses 535,637.11 1,076,986.47
Sales agent fee 744,909.50 1,744,959.00
Management fees 259,401.90
Services fees 747,425.96
Conference fees 367,481.00
Mortgage payment 499,708.63
Audit consultation expenses 1,053,295.00 809,000.00
Rent expenses 742,695.18
Vehicle expenses 1,245,168.63
Water and electricity decoration revolving
7,664,976.04 9,355,414.42
funds
Other management fees 12,577,270.67 9,893,717.76
Staff reserve fund 5,434,841.44
Total 40,790,827.78 40,206,773.65
(3)Cash received relating to other investing activities
Jan.–Jun, 2012 Jan.–Jun, 2011
Items
Interest income 5,200,000.00 22,360,895.82
The opening cash balance of Shanghai Sea Pearl Property
Management Company
Total 5,200,000.00 22,360,895.82
(4) Cash paid relating to other financing activities
Jan.–Jun, 2011 Jan.–Jun, 2011
Items
Mudanjiang Pearl River Tourism Investment and Development 1,500,000.00
Group Limited paid for financing collateral charge
Mudanjiang Pearl River Tourism Investment and Development 2,000,000.00
Group Limited paid for financing consultant charge
Other finance charges 859,000.00
Total 4,359,000.00
46. Supplementary information of cash flow statement
(1) Supplementary information
Items Jan.–Jun, 2012 Jan.–Jun, 2011
64
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Items Jan.–Jun, 2012 Jan.–Jun, 2011
1．Reconciliation of net profit to cash flows from operating activities:
Net profit -37,081,997.71 -14,063,440.81
Add: Provision for assets impairment -9,117,317.73 169,332.60
Depreciation of fixed assets, production biological assets, petroleum and natural gas 14,579,936.17 13,279,022.62
Amortization of intangible assets 584,381.87 564,908.92
Amortization of long-term prepayments 1,247,804.01 821,065.92
Losses on disposal of fixed assets, intangible assets and other long-term assets -268,623.60 -35,675.03
Losses on scrapping of fixed assets
Losses on fair value change
Financial expenses 28,834,593.64 9,531,455.61
Investment losses -18,113,290.90 404,815.92
Decrease in deferred income tax assets
Increase in deferred income tax liabilities
Decrease in inventories 10,265,558.68 31,768,792.78
Decrease in operating receivables -23,659,153.37 -14,399,498.17
Increase in operating payables -2,864,315.62 -55,421,349.87
Others
Net cash flows from operating activities -35,592,424.56 -27,380,569.51
2．Significant investing and financing activities that non-cash receipts and payments
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under finance lease
3．Net increase in cash and cash equivalents
Cash at the end of the period 64,075,389.48 71,686,794.91
Less: Cash at the beginning of the period 52,507,843.73 136,376,851.19
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents 11,567,545.75 -64,690,056.28
(2) Cash and cash equivalents
Jan.–Jun, 2012 Jan.–Jun, 2011
Items
1. Cash 64,075,389.48 71,686,794.91
Including: Cash on hand 535,337.21 889,579.96
Bank deposit paid at any time 52,745,777.68 70,779,219.00
Other monetary funds paid at any time 10,794,274.59 17,995.95
2. cash equivalents
3. Cash and cash equivalents at the end of year 64,075,389.48 71,686,794.91
65
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
VI. Related party relationship and transactions
1. Parent company and ultimate controller:
Registered Organization Principal Relationship with Registered Holding Voting rights
Name
address code operating the Company capital proportion proportion
Beijing Wangfa Real Real estate The first largest 280 million
Estate Development Beijing 60003715-7 development and shareholder Yuan 26.36% 26.36%
Holdings Co., Ltd operation
2. Information about subsidiaries
Details refer to “Note IV. 1. Subsidiaries established by the Company”
3. Information about joint venture and affiliate of the Company
Details refer to ‘Note V.9.Long-term equity investment’
4. Other related parties
Relationship with
Name Organization code
the Company
Mudanjiang Wanjia Hotel Management Co., Ltd. With same controller 692634425
Beijing ZhongjiaYangguang energy technology (group) Co., Ltd. With same controller 722611348
BeijingYulongJisheng Real Estate Development Co., Ltd. With same controller 72266773-9
5. Transactions of related parties
(1) Internal transactions have already been offset.
(2) Fund calling between related parties
By June 30, 2012, the total amount of loan principal that Beijing Xinxing Real Estate Development corporation has been made
to the Pearl River Holding has a balance of RMB 120.51 million with RMB 28.72 million of interest payable on balance. The
total amount of loan principal that the controlling shareholder Beijing Wanfa Real Estate Development Corporation has been
made to the Pearl River Holding has a balance of RMB 62,025,000.00 Yuan with interest payable on balance of RMB 22.86
million.
By By June 30, 2012, the total amount of loan principal that Beijing Xinxing Real Estate Development corporation has been
made to SanyaWanjia Hotel Management Co., Ltd has a balance of RMB 32,030,000.00 Yuan with RMB 29.28 million of
interest payable on balance. The total amount of loan principal that Beijing Wanfa Real Estate Development corporation has
been made to SanyaWanjia Hotel Management Co., Ltd has a balance of RMB 19,700,000.00 Yuan with interest payable on
balance of RMB 8.97 million.
For the loans listed between related parties, the total amount of interest expensed carried for this reporting period was
RMB 7.74 million with interest payable on balance of RMB 89,827,892.88 Yuan. The interest rate for the loans listed above is
66
Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
based on the People’ Bank of China’ benchmark interest rate for one-year loan with currency stated in RMB.
(3) Balances of related party receivable and payable
Items Company Name Jun 30, 2012 Jan 1, 2012
Other Beijing ZhongjiaYangguang energy technology
(group) Co., Ltd. 648,467.46 194,226.90
payables:
Beijing Xinxing Real Estate Development Company 152,540,447.00 152,540,447.00
Beijing Wangfa Real Estate Development Holdings
81,725,000.00 81,725,000.00
Co., Ltd
SanyaWanjia Enterprises Holding Co., Ltd. 1,344,997.47 1,344,997.47
Beijing YulongJisheng Real Estate Development
1,500,000.00 1,500,000.00
Co., Ltd.
Interest Beijing Wangfa Real Estate Development Holdings
31,834,636.63 29,223,178.68
payable: Co., Ltd.
Beijing Xinxing Real Estate Development Company 57,993,256.25 52,860,823.10
Total 327,586,804.81 318,043,675.68
VII. Contingent events
Other guarantee issues please refer to Note.V.18; Note.V.28.
VIII. Commitments
Nothing need to disclose.
IX. Non-adjusting events after the balance sheet date
Nothing need to disclose.
X. Other important events
Nothing need to disclose.
XI. Notes to significant items of the parent company’ financial statements
1. Accounts receivable
(1) Detailed information
Jun 30, 2012 Jan 1, 2012
Items Bad debt Proportio Bad debt
Proportion
Balance Bad debts ratio Balance n Bad debts ratio
(%)
(%) (%) (%)
1 Individual with significant 7,761,707.60 64.77 7,761,707.60 100.00 7,761,707.60 67.99 7,761,707.60 100.00
amount
2 Bad debt accounted by
the combinations
Age Combinations 2,322,218.27 19.38 533,605.93 22.98 1,755,515.17 15.38 522,111.87 29.74
Combined Subtotal 2,322,218.27 19.38 533,605.93 22.98 1,755,515.17 15.38 522,111.87 29.74
3 Other unimportant 1,898,690.60 15.85 1,898,690.60 100.00 1,898,690.60 16.63 1,898,690.60 100.00
receivables
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Total 11,982,616.47 10,194,004.13 11,415,913.37 10,182,510.07
(2) Age analysis
Jun 30, 2012 Jan 1, 2012
Age Bad Debts
Amounts Amounts Bad Debts Provision
Provision
Within 1 year 1,060,110.85 21,202.22 495,407.75 9,908.16
1 to 2 years 100,000.00 5,000.00 100,000.00 5,000.00
2 to 3 years 108,000.00 10,800.00 106,000.00 10,600.00
3 to 4 year 101,500.00 20,300.00 101,500.00 20,300.00
4 to 5 years
5 years and more 952,607.42 476,303.71 952,607.42 476,303.71
Total 2,322,218.27 533,605.93 1,755,515.17 522,111.87
2. Other receivables
(1) Detailed information
Jun 30, 2012 Jan 1, 2012
Items Bad debt Proport Bad debt
Proportion
Balance Bad debts ratio Balance ion Bad debts ratio
(%)
(%) (%) (%)
1. Individual with significant
74,978,380.89 16.41 34,477,855.47 45.98 74,978,380.89 16.74 34,477,855.47 45.98
amount
2. Bad debt accounted by the
combinations
Age Combinations 222,362,158.41 48.65 4,813,063.97 2.16 264,520,830.81 59.06 8,087,659.72 3.06
In scope of consolidated
155,686,652.29 103,761,317.93 23.17
statements
subtotal 378,048,810.70 48.65 4,813,063.97 1.27 368,282,148.74 82.22 8,087,659.72 2.20
3. Other unimportant
3,963,362.46 0.87 3,963,362.46 100.00 4,635,625.65 1.03 3,976,807.73 85.79
receivables
Total 456,990,554.05 100.00 43,254,281.90 447,896,155.28 46,542,322.92
(2) Aging analysis
Jun 30, 2012 Jan 1, 2012
Age Amounts Amounts
Bad Debt Bad Debt
Ratio Provision Ratio Provision
Amounts Amounts
(%) (%)
Within 1 year 211,981,730.07 95.33 4,198,102.30 219,477,402.47 82.98 4,389,548.05
1 to 2 years 10,166,939.34 4.57 508,346.97 41,829,939.34 15.81 2,091,496.97
2 to 3 years
3 to 4 year
4 to 5 years 649.00 0.00 194.70 649.00 0.00 194.70
5 years and more 212,840.00 0.10 106,420.00 3,212,840.00 1.21 1,606,420.00
Total 222,362,158.41 100.00 4,813,063.97 264,520,830.81 100.00 8,087,659.72
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
3. Long-term equity investment
Percentage Percentage
Accounting Initial investment Beginning Increase or of equity of vote right Impairment loss
Name Method Cost Balance decrease Ending Balance provision
interest（%） （%）
Hainan Pearl River Property
& Hotel Management Co., Cost Method 4,900,000.00 4,900,000.00 4,900,000.00 98 98
Ltd.
Sanya Wanjia Hotel Equity
Management Co., Ltd. Method 120,000,000.00 120,000,000.00 120,000,000.00 100 100
Sanya Wanjia Enterprises 37,552,309.00 -429,464.28 37,122,844.72
Holding Co., Ltd. Cost Method 40,000,000.00 40 40
Hubei Pearl River Real
Estate Development Co., Ltd.
Cost Method 57,200,000.00 57,200,000.00 57,200,000.00 88 88
Hainan Pearl River
Enterprises Holding Co.,
Cost Method 40,000,000.00 40,000,000.00 40,000,000.00 100 100 40,000,000.00
Ltd. Shanghai Real Estate
Co.
Beijing Jiubo Culture
Cost Method 5,000,000.00 5,000,000.00 5,000,000.00 100 100
Development Co., Ltd.
Mudanjiang Pearl River
Cost Method 60,000,000.00 60,000,000.00 60,000,000.00 100 100
Hotel Management Co., Ltd.
Hainan Pearl River
Cost Method 426,315.00 426,315.00 426,315.00 1.33 1.33
Guanzhuang Co., Ltd
Hainan Tongsheng Ports Co.,
Ltd Cost Method 6,000,000.00 6,000,000.00 6,000,000.00 15 15 6,000,000.00
Hainan Chamber of
Commerce Cost Method 500,000.00 500,000.00 500,000.00 6.67 6.67 500,000.00
Network Science and
Technology Investment Co. Cost Method 10,000,000.00 10,000,000.00 10,000,000.00 10 10 10,000,000.00
Hainan Huadi Pearl River
Foundation Engineering Co., Cost Method 160,000.00 160,000.00 160,000.00 2 2
Ltd.
Guangzhou Pearl River
Investment Management Co., Cost Method 18,177,240.29 18,177,240.29 18,177,240.29 9.48 9.48 7,352,245.39
Ltd
Hainan Nanyang Shipping
Cost Method 1,680,000.00 1,680,000.00 1,680,000.00 1,680,000.00
Industrial Company Limited
Hebei zhengshiqinghui Real 5,100,000.00
Estate Development Co., Ltd. Cost Method 5,100,000.00 5,100,000.00 51 51
Total 369,143,555.29 366,695,864.29 -429,464.28 366,266,400.01 65,532,245.39
4. Operating income and operating costs
(1) Operating income
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Main operating business income
Other operating business income 579,338.20 193,340.00
Total 579,338.20 193,340.00
(2) Operating costs
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Main operating business costs
Other operating business costs 177,796.80 26,578.50
Total 177,796.80 26,578.50
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
５． Ｉｎｖｅｓｔｍｅｎｔ ｉｎｃｏｍｅ
Jan.–Jun, 2012 Jan.–Jun, 2011
Items
Income from cost accounting method investment 92,400,000.00
Income from equity accounting method investment -429,464.28 -404,815.92
Income from disposal sellable financial assets 18,542,755.18
Total 110,513,290.90 -404,815.92
6. Supplementary information of cash flow statement
Items Jan.–Jun, 2012 Jan.–Jun, 2011
1．Reconciliation of net profit to cash flows from operating activities:
Net profit 87,358,126.84 -12,409,027.24
Add: Provision for assets impairment -3,276,546.96 -460,057.00
Depreciation of fixed assets, production biological assets, petroleum and natural gas 1,095,111.06 1,178,325.85
Amortization of intangible assets 23,831.82 23,831.82
Amortization of long-term prepayments
Losses on disposal of fixed assets, intangible assets and other long-term assets 12,915.00
Losses on scrapping of fixed assets
Losses on fair value change
Financial expenses 16,000,625.80 3,766,307.21
Investment losses -110,513,290.90 404,815.92
Decrease in deferred income tax assets
Increase in deferred income tax liabilities
Decrease in inventories
Decrease in operating receivables 5,854,963.42 -1,301,214.46
Increase in operating payables -487,611.84 11,847,920.68
Others
Net cash flows from operating activities -3,944,790.76 3,063,817.78
2．Significant investing and financing activities that non-cash receipts and payments
Conversion of debt into capital
Convertible bonds to be expired within one year
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Items Jan.–Jun, 2012 Jan.–Jun, 2011
Fixed assets under finance lease ——
3．Net increase in cash and cash equivalents
Cash at the end of the period 12,257,715.18 27,066,982.58
Less: Cash at the beginning of the period 515,955.59 47,697,821.48
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents 11,741,759.59 -20,630,838.90
XII. Supplementary information
1. According to “Information disclosure requirement No.1 for the companies issuing securities publicly – Non-recurring Profit and
Loss [2008]”issued by China Securities Regulatory Commission ([2008] No. 43), the amount of non-recurring profit and loss is as
follows (profit is “+” loss is “-”):
Items Jan.–Jun, 2012
Profit and loss on disposal of non-current assets 60,773.50
Fund occupation fee from non-financial enterprises included in the current profit and loss 2,829,976.16
Revenue generated from obtaining subsidiaries, associates and joint venture investment as the
investment cost less than the fair value of identifiable net assets
Gains from disposal of available for sale financial assets excluded effective hedging with operating 18,542,755.18
Others non-operating income and expenses excluded as above -114,237.94
Other non-operating income and costs
Income tax impact -10080.06
Equity impacts of minority interests -6,341.50
Total 21,302,845.34
2. Earnings per share
Earnings per share
Profit of this year Basic earnings per share Diluted earnings per share
Jan.–Jun, 2012 Jan.–Jun, 2011 Jan.–Jun, 2012 Jan.–Jun, 2011
Net profit attributable to common shareholders -0.09 -0.04 -0.09 -0.04
Net profit excluding non-recurring Profit and Loss -0.14 -0.08 -0.14 -0.08
attributable to common shareholders
The calculation process of asset yield rate via weighted average manner is as follows:
Item Code Jan.–Jun, 2012 Jan.–Jun, 2011
Net profits that belong to the common shareholders P0 -37,734,798.44 -15,041,866.11
during the reporting period
Extraordinary profits and losses that belong to the A 21,302,845.34 19,971,411.45
common shareholders during the reporting period
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Item Code Jan.–Jun, 2012 Jan.–Jun, 2011
Net profits that belong to the common shareholders
during the reporting period after taking off the effect of P1=P0-A -59,037,643.78 -35,013,277.56
extraordinary profits and losses
The opening balance of net assets that belong to the E0 373,004,748.20 497,295,405.44
common shareholders
Increased net assets belonging to common
shareholders that caused by issuing new shares or Ei
debt-equity conversion during the reporting period
Increased net assets from the next month until the end Mi
of the reporting period
Decreased net assets belonging to common
shareholders that caused by repurchasing or cash Ej
dividend distribution during the reporting period
Decreased net assets from the next month until the end Mj
of the reporting period
Changes of net assets caused by other issues Ek
Changes of other net assets from the next month until Mk
the end of the reporting period
Total months of the reporting period M0 6 6
The closing balance of net assets that belong to E1 387,301,911.35 488,238,539.33
common shareholders
The weighted average net assets that belong to E2=E0+P0/2+Ei*Mi/M0-Ej*Mj/M0+Ek*Mk/M0 380,153,329.78 492,766,972.39
common shareholders
The weighted average net assets yield rate before X1=P0/E2 -9.93% -3.05%
taking off the effect of extraordinary profits and losses
The weighted average net assets yield rate after taking X1=P1/E2 -15.53% -7.11%
off the effect of extraordinary profits and losses
4 Abnormal issues and its related explanations for major accounting statements
（１） Balance sheet
Rate of
Item Jun 30, 2012 Jan 1, 2012 Explanations
change
Increased Property services and hotel revenue from
Receivables 10,524,260.83 7,047,354.39 49.34 subsidiaries
Prepayments for the project of snow town
Prepayments 152,107,124.73 76,803,784.89 98.05
development
Obtain loans from Chongqing International Trust
Short-term loans 235,000,000.00 45,000,000.00 422.22 Company
Accounts received in Property accounts received in advance carried forward
8,979,806.60 19,556,674.90 -54.08
advance into revenue
Non-current liabilities The return of the loans to Chongqing International
12,000,000.00 232,000,000.00 -94.83
due within 1 year Trust Company
Long-term loans 191,000,000.00 81,000,000.00 135.80 Subsidiary obtain the loans
Deferred income tax
67,653,941.30 49,347,638.80 37.10 Increase fair value of available for sale financial assets
liability
Minority interests 14,727,426.89 26,674,626.16 -44.79 Subsidiary distribute profit to owners
（２） Income statement
Rate of
Item Jan.–Jun, 2012 Jan.–Jun, 2011 Explanations
change
Operating taxes and 8,907,927.55 17,123,298.21 -47.98 Reduced income from property sales
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Abstract of the Semi-Annual Report 2012 of HaiNan Pearl River Holdings Co., Ltd.
Rate of
Item Jan.–Jun, 2012 Jan.–Jun, 2011 Explanations
change
extras
Increased number of staffs and salary
Sales expenses 4,879,658.11 3,593,594.12 35.79
level
General and
53,000,592.30 39,721,435.23 33.43 Increased number of subsidiaries
administrative expenses
Decreased amount of interest of debt
Financial expenses 29,066,735.26 5,755,839.36 405.00
loans
Loss of devaluation of
-9,117,317.73 169,332.30 -5484.28 Decreased the accounts receivable
assets
Disposal of available for sale financial
Investment income 18,113,290.90 -404,815.92 4574.45 assets
Income tax 1,777,028.96 5,433,288.59 -67.29 Decreased profit of subsidiary
Other comprehensive Increase fair value of available for sale
52,031,961.59 5,985,000.00 769.37
income financial assets
Net cash flows from
-35,592,424.56 -27,380,569.51 -29.99 Reduced income from property sales
operating activities
Net cash flows from
-13,318,493.44 -40,936,801.77 67.47 Decreased cash payment of investment
investing activities
Net cash flows from
60,478,463.75 3,627,315.00 1567.31 Obtain the loans
financing activities
XIII. Approval of the financial statements
The financial statements have been approved by the board of directors of the Company in August 24, 2012.
Based on the Articles of Association, the financial statements would be submitted to General Conference of Shareholders.
Hainan Pearl River Holding Company Limited
August 24, 2012
Legal representative: Accounting Supervisor: Chief Accountant:
Signature: Signature: Signature: Date:
Date: Date:
73
