HaiNan Pearl River Holdings Co., Ltd.
The 1st Quarterly Report for 2009
(Full Text)
§1. Important Notice
1.1 Board of Directors and the Supervisory Committee of HaiNan Pearl River Holdings
Co., Ltd (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby
confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this
report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the
whole contents.
1.2 The Financial Report For the 1st Quarterly Report of the Company has not been audited by CPAs.
1.3 Mr. Zheng Qing, Chairman of the Board as well as General Manager; Mr. Chen Binglian, Standing Deputy
General Manager as well as Person in Charge of Financing Affairs; Mr. Yang Daoliang, Manager of the Financial
Department hereby confirm that the Financial Report enclosed in the 1st Quarterly Report is true and complete.
§2. Company Profile
2.1 Main Accounting Data and Financial Indexes:
Unit: RMB
At the end of the report
period
At the end of
the last year
Increase/decrease (%)
Total assets 1,758,354,313.28 975,122,914.20 80.32
Owners’ equity(or Shareholders’ equity) 827,248,487.83 119,086,531.85 594.66
Net asset per share 1.94 0.28 592.86
Year-begin to the end of report period
Increase/decrease in the report period
compared with that in the same period
of last year (%0
Net cash flow arising from operating activities 6,204,999.78 113.17
Net cash flow arising from operating activities per
share
0.01 109.09
In the report period
Year-begin to
the end of
report period
Increase/decrease in the report period
compared with that in the same period
of last year (%0
Net profit -14,067,592.22 -14,067,592.22 44.00
Basic earnings per share -0.03 -0.03 50.00
Diluted earnings per share -0.03 -0.03 50.00
Return on equity -1.70% -1.70% Increased 13.03 percentage points
Return on equity after deducting the non-recurring
losses and gains
-1.71% -1.71% Increased 12.78 percentage points
Items of non-recurring gains and losses Amount in year-begin to the end of report period
Net amount of other non-operating income and expense 102,290.66
Less: Impact of income tax
Less: Influenced amount of minority shareholder -24.76
Total 102,315.422.2 Total number of shareholders at the end of the report period and shares held by the top
ten shareholders with
unrestricted conditions
Unit: Share
Total number of shareholders
at the end of report period
59,991
Particulars about the shares held by the top ten tradable shareholders with unrestricted conditions
Full Name of shareholder
Amount of tradable shares with
unrestricted conditions held at the end of
report period
Type of shares
Yang Bochen 5,850,000 RMB common share
Gu Hongjuan 4,015,100 RMB common share
Yang Jianzhong 3,020,000 RMB common share
Wang Shuxia 2,047,641 RMB common share
Zhang Xiaoxia 1,949,250 Domestically listed foreign share
GUOTAI JUNAN SECURITIES (HONGKONG)LIMITED 1,681,000 Domestically listed foreign share
Chen Shuping 1,260,614 RMB common share
Tianjin Shengda Rolled Steel Co., Ltd. 1,150,000 RMB common share
Pan Qi 1,066,123 Domestically listed foreign share
Anhui Hengrun Mining Research & Development Co., Ltd. 1,007,988 RMB common share
§3. Significant events
3.1 Particulars about material changes in items of main accounting statement and financial index, and
explanations
of reasons
√Applicable □Inapplicable
Item Jan. to Mar.,
2009
Jan. to Mar.,
2008
Scope of increase
or decrease (%)
Main reasons for change
Administrative expense 11,340,595 21,685,965 -47.71 Bigger in amount of last year was influenced by
the expense for the opening of Hotel in Sanya
Net profit -14,561,319 -25,672,696 43.28 Bigger in losses of last year was influenced by
the expense for the opening of Hotel in Sanya
Net cash flow arising from operating
activities 6,205,000 -47,122,056 113.17 Account sold in advance for houses in Phase II
of Wuhan Project increased
Net cash flow arising from investing
activities -265,411 -18,833,835 98.59 Payment for project account of Hotel in Sanya
decreased
Net cash flow arising from financing
activities 129,533 56,730,369 -99.77 Funds borrowed from the bank and actual
controller decreased
Item Mar. 31, 2008 Mar. 31, 2007
Scope of increase
or decrease (%)
Main reasons for change
Account paid in advance 37,211,358 28,251,518 31.71 Project account paid in advance for Phase II of
Wuhan Project increased
Financial assets available for sales 790,230,000
-
-
Southwest Securities Co., Ltd. was reclassified
as financial assets available for sales
Long-term equity investment 13,153,951
81,154,403.00 -83.79 Southwest Securities Co., Ltd. was reclassified
as financial assets available for sales
Account received in advance 218,856,803 142,957,606 53.09 Account sold in advance for houses in Phase II
of Wuhan Project increased
Tax payables -5,322,001 2,503,332 -312.60
Resulted by payment of tax for the account sold
in advance for houses in Phase II of Wuhan
Project
Capital public reserve 1,056,489,705 334,260,157 216.07 Caused by the change of fair value of the shares
of Southwest Securities Co., Ltd.
3.2 Analysis and explanation of significant events and their influence and solutions□Applicable
√Inapplicable
3.3 Implementations of commitments by the Company, shareholders and actual controller
√Applicable □Inapplicable
Commitments Content of commitments Implementation
Beijing Wanfa Real Estate
Development Co., Ltd.
The non-tradable shares held by it should not get listed or transacted in
Shenzhen Stock Exchange within 36 months since the day of listing and
circulating option in A share market.
Implemented
strictly
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next report period
to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason
□Applicable √Inapplicable
3.5 Other significant events which need explanations
3.5.1 Particulars about securities investment
□Applicable √Inapplicable
3.5.2 Registration form for receiving research, communication and interview in the report period.
□Applicable √Inapplicable
3.5.3 Particulars about the explanations on other significant events
√Applicable □Inapplicable
i. In the report period, the Company did not offer funds to its controlling shareholders or related
parties, and had no
external guarantees with breaking the regulations.
ii. In the report period, the controlling shareholders of the Company did not put forward or carry out any
plan on
add in holding shares.
ii. In the report period, the Company did not sign any material contract.
HaiNan Pearl River Holdings Co., Ltd.
April 24, 2009Balance Sheet
March 31, 2009
Prepared by HaiNan Pearl River Holdings Co., Ltd. Unit: RMB
Items Amount in period-end Amount in year-begin
Merger Parent Company Merger Parent Company
Current assets:
Monetary funds 42,724,658.29 5,114,122.55 36,655,536.17 4,869,795.27
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable
Accounts receivable 2,966,424.31 1,222,503.16 4,129,361.34 2,675,761.66
Accounts paid in advance 37,211,357.72 - 28,251,517.83 -
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable 260,015.00 260,015.00 260,015.00 260,015.00
Other receivables 37,060,402.61 59,767,392.14 33,822,326.10 60,334,145.29
Purchase restituted finance asset
Inventories 503,348,900.08 82,236,380.53 454,982,865.16 81,860,455.91
Non-current asset due within one
year
Other current assets
Total current assets 623,571,758.01 148,600,413.38 558,101,621.60 150,000,173.13
Non-current assets:
Granted loans and advances
Finance asset available for sales 790,230,000.00 790,230,000.00
Held-to-maturity securities
Long-term account receivable
Long-term equity investment 13,153,951.24 201,511,309.90 81,154,403.04 269,511,761.70
Investment property 21,447,187.08 21,668,361.96
Fixed assets: 276,648,733.39 21,875,795.28 280,665,887.45 22,340,376.54
Construction in progress - - - -
Engineering material 606,206.60 - 606,206.60
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 32,696,476.96 1,731,779.25 32,926,433.55 1,743,695.16
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned -
Deferred income tax asset
Other non-current asset
Total non-current asset 1,134,782,555.27 1,015,348,884.43 417,021,292.60 293,595,833.40
Total assets 1,758,354,313.28 1,163,949,297.81 975,122,914.20 443,596,006.53
Legal Representative: Zheng Qing Person in Charge of Accounting Works: Chen Binglian
Person in Charge of Accounting Institution: Yang DaoliangBalance Sheet
March 31, 2009
Prepared by HaiNan Pearl River Holdings Co., Ltd. Unit: RMB
Amount in period-end Amount in year-begin
Items
Merger Parent Company Merger Parent Company
Current liabilities:
Short-term loans 24,000,000.00 24,000,000.00 24,000,000.00 24,000,000.00
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Transaction financial liabilities
Notes payable
Accounts payable 32,631,960.29 4,133,088.24 32,924,422.72 4,200,330.44
Accounts received in advance 218,856,802.74 1 4 2 , 9 5 7 ,6 0 6 . 1 9 36,167.00
Selling financial asset of repurchase
Commission charge and commission
payable
Wage payable 3,090,306.56 613,386.05 4,026,386.21 957,127.11
Taxes payable -5,322,000.98 -2,143,209.44 2,503,332.27 -2,087,904.47
Interest payable 75,019,185.05 43,971,058.80 69,783,831.76 40,928,604.71
Dividend payable 3,213,302.88 3,213,302.88 3,213,302.88 3,213,302.88
Other accounts payable 406,790,861.19 242,045,866.68 403,308,365.93 240,018,631.52
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due within 1 year 5,000,000.00 5,000,000.00
Other current liabilities
Total current liabilities 763,280,417.73 315,833,493.21 687,717,247.96 311,266,259.19
Non-current liabilities:
Long-term loans 157,000,000.00 157,000,000.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 157,000,000.00 1 5 7 , 0 0 0 ,0 0 0 . 0 0
Total liabilities 920,280,417.73 315,833,493.21 844,717,247.96 311,266,259.19
Owner’s equity (or shareholders’ equity):
Paid-in capital (or share capital) 426,745,404.00 426,745,404.00 426,745,404.00 426,745,404.00
Capital public reserve 1,056,489,705.18 1,059,506,044.72 334,260,156.98 337,276,496.52
Less: Inventory shares
Surplus public reserve 114,177,485.88 109,487,064.39 114,177,485.88 109,487,064.39
Provision of general risk
Retained profit -770,164,107.23 -747,622,708.51 -756,096,515.01 -741,179,217.57
Balance difference of foreign currency
translation
Total owner’s equity attributable to parent
company
827,248,487.83 848,115,804.60 119,086,531.85 132,329,747.34
Minority interests 10,825,407.72 11,319,134.39
Total owner’s equity 838,073,895.55 848,115,804.60 130,405,666.24 132,329,747.34
Total liabilities and owner’s equity 1,758,354,313.28 1,163,949,297.81 975,122,914.20 443,596,006.53
Legal Representative: Zheng Qing Person in Charge of Accounting Works: Chen Binglian
Person in Charge of Accounting Institution: Yang DaoliangProfit Statement
Jan.-Mar., 2009
Prepared by HaiNan Pearl River Holdings Co., Ltd. Unit: RMB
Amount in this period Amount in the same period of last period
Items
Merger Parent Company Merger Parent Company
I. Total operating income 24,899,406.13 126,985.00 21,335,647.12 88,717.75
Including: Operating income 24,899,406.13 126,985.00 21,335,647.12 88,717.75
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 39,554,957.55 6,570,475.94 46,527,492.43 6,959,851.25
Including: Operating cost 18,140,479.93 1 4 , 0 3 4 ,1 5 2 . 6 3
Interest expense
Commission charge and commission
expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras 1,284,676.47 6,984.19 1,215,020.54 4,879.48
Sales expenses 2,800,608.37
988.00
2,198,206.17
Administration expenses 11,340,595.14 3,094,777.88 21,685,964.78 2,606,657.47
Financial expenses 5,998,039.20 3,482,241.04 7,401,520.37 4,351,610.54
Losses of devaluation of asset -9,441.56 -14,515.17 -7,372.06 -3,296.24
Add: Changing income of fair value(Loss
is listed with “-”)
Investment income (Loss is listed with
“-”)
Including: Investment income on
affiliated company and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) -14,655,551.42 -6,443,490.94 -25,191,845.31 -6,871,133.50
Add: Non-operating income 103,877.68 30,345.00
Less: Non-operating expense 1,587.02 494,412.18
Including: Disposal loss of non-current
asset
IV. Total Profit (Loss is listed with “-”) -14,553,260.76
-6,443,490.94
-25,655,912.49
-6,871,133.50
Less: Income tax 8,058.13 - 16,783.46
V. Net profit (Net loss is listed with “-”) -14,561,318.89 -6,443,490.94 -25,672,695.95 -6,871,133.50
Net profit attributable to owner’s equity of
parent company
-14,067,592.22 -25,120,627.83
Minority shareholders’ gains and losses -493,726.67 -552,068.12
VI. Earnings per share
i. Basic earnings per share -0.03 -0.06
ii. Diluted earnings per share -0.03 -0.06
Legal Representative: Zheng Qing Person in Charge of Accounting Works: Chen Binglian
Person in Charge of Accounting Institution: Yang DaoliangCash Flow Statement
Jan.-Mar., 2009
Prepared by HaiNan Pearl River Holdings Co., Ltd. Unit: RMB
Amount in this period Amount in the same period of last period
Items
Merger Parent Company Merger Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 99,461,837.41 1,579,849.00
27,405,502.59 8,063,717.75
Net increase of customer deposit and interbank d eposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Insured savings and net increase of investment
Net increase of disposal of transaction financial asset
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Write-back of tax received
Other cash received concerning operating activities 2,797,652.48 1,965,218.06 3,813,783.55 1,481,403.12
Subtotal of cash inflow arising from operating activities 102,259,489.89 3,545,067.06 31,219,286.14
9,545,120.87
Cash paid for purchasing commodities and receiving labor service 64,910,004.04 312,804.31 52,559,143.94
1,218,636.65
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 14,630,301.58 1,043,225.70 11,299,607.44 1,133,861.68
Taxes paid 9,882,161.43 210,999.31 8,331,191.06 31,928.65
Other cash paid concerning operating activities 6,632,023.06 7,768,258.43 6,151,399.36 3,142,663.79
Subtotal of cash outflow arising from operating activities 96,054,490.11 9,335,287.75 78,341,341.80
5,527,090.77
Net cash flows arising from operating activities 6,204,999.78 -5,790,220.69 -47,122,055.66 4,018,030.10
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income
Net cash received from disposal of fixed, intangible and other long-term assets
34,300.00
Net cash received from dis posal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 34,300.00
Cash paid for purchasing fixed, intangible and other long -term assets 265,411.00 29,966.00 18,868,135.33
813,754.00
Cash paid for investment
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 265,411.00 29,966.00 18,868,135.33 813,754.00
Net cash flows arising from investing activities -265,411.00 -29,966.00 -18,833,835.33 -813,754.00
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing minority shareholders’ investment by subsidiaries
Cash received from loans 6,500,000.00 6,500,000.00 74,040,000.00 7,900,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 6,500,000.00 6,500,000.00 74,040,000.00 7,900,000.00
Cash paid for settling debts 3,500,000.00 1 3 ,5 0 0 , 0 0 0 .0 0 3 ,5 0 0,000.00
Cash paid for dividend and profit distributing or interest paying 2,870,466.66 435,486.03 3,808,242.56
865,877.71
Including: Dividend and profit of minority shareholder paid by subsidiaries
Other cash paid concerning financing activities 1,388.50 1,388.50
Subtotal of cash outflow from financing activities 6,370,466.66 435,486.03 17,309,631.06 4,367,266.21
Net cash flows arising from financing activities 129,533.34 6,064,513.97 56,730,368.94 3,532,733.79
IV. Influence on cash due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents 6,069,122.12 244,327.28 -9,225,522.05 6,737,009.89
Add: Balance of cash and cash equivalents at the period -begin 36,655,536.17 4,869,795.27 110,933,403.84
2,188,333.46
VI. Balance of cash and cash equivalents at the period -end 42,724,658.29 5,114,122.55 101,707,881.79
8,925,343.35
Legal Representative: Zheng Qing Person in Charge of Accounting Works: Chen Binglian Person in Charge of A
ccounting Institution: Yang Daoliang
