TSANN KUEN (CHINA) ENTERPRISE CO. LTD
THE THIRD QUARTERLY REPORT 2009
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee and directors, supervisors and senior
management of TSANN KUEN (CHINA) ENTERPRISE CO., LTD. (hereinafter referred to as
“the Company”) warrant that this report does not contain any false or misleading statements or
omit any material facts and all information set forth herein are true, accurate and complete.
1.2 None of the directors, supervisors, senior management demonstrated uncertainty or
disagreement about the truthfulness, accuracy, and completeness of the third quarterly report.
1.3 All directors attended the Board meeting.
1.4 The Financial Report of the quarterly report period has not been audited.
1.5 Mr. Jian Derong, Chairman of the Board of Directors and Mr. Chen Zongyi, Accounting
Manager jointly guaranteed that the financial statements in this quarterly report are true and
complete.
§2 Company Profile
Short form of the stock Tsann Kuen B
Stock code 200512
Stock exchange listed with Shenzhen Stock Exchange
Secretary of the Board Securities Affairs Representative
Name Luo Qingxing Sun Meimei
Contact address
Tsann Kuen Industrial Park, Longchi
Development Zone, Zhangzhou, Fujian
Province
Tsann Kuen Industrial Park, Longchi
Development Zone, Zhangzhou, Fujian
Province
Telephone 0596-6268103 0596-6268161
Fax 0596-6268104 0596-6268104
E-mail allenlo@tkl.tsannkuen.com mm_sun@tkl.tsannkuen.com2
2.1 Main accounting data and financial indices
Unit: RMB Yuan
Items
At the period-end of this report
period
At the period-end of
last year
Increase/decreas
e (%)
Total assets 1,950,760,164.05 2,236,370,415.83 (12.77)
Owners’ equity attributable to shareholders of
listed company
375,461,521.39 343,776,758.97 9.22
Share capital 1,112,350,077.00 1,112,350,077.00 (0.00)
Net assets per share 0.3375 0.3091 9.19
Items
The report
period
Increase/decreas
e year-on-year
(%)
From the year-begin
to the end of report
period
Increase/decreas
e year-on-year
(%)
Operating revenue 705,296,161.86 (34.98) 1,890,015,449.96 (40.52)
Net profit attributable to shareholders of listed
company
11,819,201.62 (3.80) 31,982,417.80 (20.11)
Net cash flow arising from operating activities 147,778,919.48 (40.67) 111,731,232.10 25.29
Net cash flow per share arising from operating
activities
0.1329 (40.64) 0.1004 25.19
Basic earnings per share 0.0106 (3.64) 0.0288 (20.00)
Earnings per share-diluted 0.0106 (3.64) 0.0288 (20.00)
Return on equity 3.15% (0.43) 8.52% (3.16)
Return on equity after deducting non-recurring
gains and losses
2.23% (1.09) 6.96% (4.07)
Items of non-recurring gains and losses
Unit: RMB Yuan
Items Amount Notes
Gains and losses from disposal of non-current assets, including the part that withdrawn
reserve for impairment of assets were offset
9,916,137.22
Gains and losses from change in fair value of tradable financial assets and tradable financial
liabilities and investment income from disposal of tradable financial assets, tradable financial
liabilities and available-for-sale financial assets except for effective hedging business related
to normal operation business of the Company
(2,103,841.62)
Government subsidy measured into current gains and losses, while closely related with the
business of the Company, excluding the fixed-amount or fixed-proportion government
subsidy enjoyed according to the certain standard
7,018,471.63
Other non-operating income and expense beside for the above-mentioned each items 793,685.38
Influence on enterprise income tax 2,276,590.32
Net profit attributable to minority shareholders after deducting non-recurring gains and losses (12,052,176.17)
Total 5,848,866.763
2.2 Total number of shareholders at the end of the report period and statement on shares held by
the top ten shareholders holding tradable shares
Unit: Share
Total number of shareholders at the end of report period 31,193 人
Shares held by the top ten shareholders holding tradable shares
No. Name of shareholder (full name) Number of tradable shares held Type of share
1 FORDCHEE DEVELOPMENT LIMITED 323,643,179 B-share
2 EUPA INDUSTRY CORPORATION LIMITED 181,855,147 B-share
3 FILLMAN INVESTMENTS LIMITED 108,843,637 B-share
4 TIMMERTON CO INC 14,505,644 B-share
5 CHEN YONG QUAN 7,596,456 B-share
6 CHEN YONG QING 5,855,089 B-share
7 CHEN LI JUAN 5,694,746 B-share
8 CSC SECURITIES (HK) LTD. 4,993,879 B-share
9 HE JIAN XIONG 4,439,551 B-share
10 TSAI SHU HUI 4,294,433 B-share
Explanation on related relationship and
action-in-concert among above mentioned shareholders
The top three shareholders are the controlling shareholders.
Shareholder Tsai Shuhui is also director of TSANN KUEN (Taiwan)
ENTERPRISE CO. LTD, which is the actual controller of the
Company. The Company was not aware that whether there were any
related relationships between other shareholders holding tradable
shares and whether or not the other shareholders holding tradable
shares belonged to the action-in-concert people specified in The
Regulations for Information Disclosure on the Change of Shares Held
by the Shareholders of the Listed Companies.
§3 Significant Events
3.1 Particular about large-margin change of main accounting statement item and financial
indices and its reason
√Applicable □Inapplicable
Unit: RMB’0000 Yuan
Items
30 Dec.
2009
31 Dec.
2008
Increase
/decreas
e (%)
Main reasons for changes
Notes receivable 230.36 582.35 -60.44 Some notes of last year was material in current period.
Accounts paid in
advance
455.19 891.08 -48.92
Some of the prepayments for materials last year were
checked and received in this period.
Available-for-sale
financial assets
18.93 10.98 72.40
The held shares of Shanghai Join Buy Co., Ltd. which
were not subject to control, common control or significant
influence belonged to the available-for-sale financial
assets. And the differences between their fair value and
book value were included in the capital reserves.
Long-term receivables 10,565.13 6,848.79 54.26 This was due to the increase of income arising from selling4
Items
30 Dec.
2009
31 Dec.
2008
Increase
/decreas
e (%)
Main reasons for changes
equipments in this period.
Construction in progress 450.28 342.43 31.50 Decoration of workshop has not been completed yet.
Good will 73.78 0.00
Difference between trading price and net book value of
shares of travelling company merged
Short-term borrowings 66.32 0.00
This was due to the increased credit borrowings in this
period.
Notes payable 8,778.28 17,759.68 -50.57
The Company changed payment term, which was changed
from decrease of acceptance bills to increase of open
domestic L/C.
Other payables 24,639.71 39,625.40 -37.82
Repayment of material borrowings USD 17 million to
controlling shareholder.
Long-term borrowings
due within 1 year
6,829.00 0.00
Long-term borrowings 0.00 6,834.60 -100.00
Subject of long-term borrowings due within 1 year was
reclassified.
Deferred income tax
liabilities
4.68 63.64 -92.65
The unrealized exchange over the same period of last year
was conducted in this period.
Difference in foreign
currency statements
(89.96) (53.99) 66.62
This was due to the converted difference resulted from the
fact that the subsidiary Eupa (Hong Kong) Co. Ltd.
adopted Hong Kong dollar as its accounts-keeping unit.
Items
Jan.-Sep.
2009
Jan.-Sep.
2008
Increase/
decrease
(%)
Main reasons for changes
Operation revenue 189,001.54
317,771.
11
-40.52
Operation cost 164,901.50
291,120.
95
-43.36
Affected by the financial crisis, the operation revenue
decreased by 40.52% over the same period of last year,
which led to the decrease of the relevant items.
Financial expenses (264.45) 3,127.28 -108.46
1. The matured loans were paid off, which cut the interest
expense by RMB 16.11 million;
2. Due to the fluctuation of exchange rate in the same
period of last year, an exchange loss of RMB 22.93 million
was registered.
Asset impairment loss 22.43 612.17 -96.34 The asset impairment loss withdrawn in the same period of
last year was reversed.
Gains from fair value
changes (“-” means
loss)
(28.79) (888.54) -96.76
This was due to the operation of forward exchange. And
the loss was resulted from the difference between the bank
exchange rate and the contractual exchange rate.
Gains from investments
(“-” means loss)
(180.84) 4,662.24 -103.88 The forward exchange transactions that incurred loss were
settled in this period.
Non-operational
expenses
254.50 618.54 -58.85 This was due to the asset disposal loss and donation
expense for Wenchuan at the same period of last year.
Income tax expenses 333.49 1,000.58 -66.67
Withdraw in accordance with Requirement of Accounting
Standards for Business Enterpriser No. 18- Income Tax.5
3.2 Progress of significant events, as well as analysis and explanation on their influence and
solutions
3.2.1 Sale of assets
√Applicable □Inapplicable
Tssan Kuen Zhangzhou Enterprise Co., Ltd., the Company’s holding subsidiary, invited some
spare parts plants into the Tssan Kuen Industrial Park, so as to focus on its core advantages of
R&D, design and sale, and reduce the proportion of the self-made spare parts. And the overall
market competitiveness of the Company would be strengthened for those more professional
spare parts plants in the industrial park could supply spare parts directly to Tssan Kuen
Zhangzhou, which contributed to a lower cost and a better quality; Meanwhile, such a move
was able to reduce the proportion of the occupied fixed assets and increase the overall turnover
rate of assets, so as to ensure a steady and sustained future development of the Company.
For more details, please refer to the Public Notice on Selling Some Operating Assets of Spare
Parts Plants by Holding Subsidiary Tssan Kuen Zhangzhou Enterprise Co., Ltd., the Public
Notice on Progress of Holding Subsidiary’s Selling Some Operating Assets of Spare Parts
Plants and Another Sale of Assets and the Public Notice on Progress of Holding Subsidiary’s
Selling Some Operating Assets of Spare Parts Plants and A Third Sale of Assets, all published
on Securities Times, Hong Kong Ta Kung Pao and http://www.cninfo.com.cn dated respectively
on 29 Jul. 2008, 21 Jan. 2009 and 28 Apr. 2009.
Due to the needs of the said spare parts plants in their actual operation, the plants purchased a
small quantity of equipments from the Company in the reported period, which was detailed as
follows:6
Unit: RMB 0’000
Transaction party Asset sold Date of sale Selling price
Net profit contributed
to the Company by
the sold asset from
year-begin to the
date of sale
Gains and
losses due to
selling the
asset
Whether a
related
transaction or
not
Explanation on
pricing
principle
Whether or not the
ownership of the
involved asset had
been transferred
whether or not the
relevant creditor’s
rights and
liabilities had been
transferred
Relationship
with the
Company
Xiamen Haoren Injection molding equipment 31 Mar. 2009 1,338.02 (32.47) (32.47)
Longhai Chaoda Electronic equipment 31 Mar. 2009 434.68 (32.38) (32.38)
Xiamen Hanrun Injection molding equipment 28 Feb. 2009 122.42 11.54 11.54
Xiamen Yuanquanxing Injection molding equipment 31 Mar. 2009 103.66 13.29 13.29
Xiamen Yongxinghe Injection molding equipment 31 Mar. 2009 99.24 7.43 7.43
Zhangzhou Weidi Injection molding equipment 28 Feb. 2009 95.39 39.57 39.57
Longhai Fushun Injection molding equipment 31 Apr. 2009 18.85 2.03 2.03
Xiamen Jingjing Die casting equipment 31 MAY. 2009 894.28 (12.85) (12.85)
Xiamen Huadaxing Die casting equipment 30 Apr. 2009 570.34 101.01 101.01
Xiamen Keid Bakelite equipment 30 Apr. 2009 527.31 85.42 85.42
Suzhou Yifeng Injection molding equipment 31 Mar. 2009 431.46 38.09 38.09
Zhangzhou Tianfeng Hardware equipment 31 Mar. 2009 69.25 21.03 21.03
Xiamen Huyiming Electronic equipment 30 Apr. 2009 33.87 6.35 6.35
Zhangzhou Ruicheng Die casting equipment 31 MAY. 2009 251.24 26.40 26.40
Xiamen Jingjing Die casting equipment 31 Jul. 2009 65.58 7.82 7.82
Zhangzhou Ruicheng Die casting equipment 31 Aug. 2009 250.00 25.25 25.25
No No
Xiamen Jinyuan Hardware equipment 30 Apr. 2009 41.03 6.59 6.59
Xiamen Yongkun Electronic equipment 30 Jun. 2009 10.21 1.85 1.85
Zhangzhou Xinhui Hot iron equipment 30 Jun. 2009 5.37 0.24 0.24
Non-related
company
The
transaction
prices were
decided
based on
the principle
of being
above the
book value,
as well as
the
assessment
and market
prices.
Yes Yes
Non-related
company7
Transaction party Asset sold Date of sale Selling price
Net profit contributed
to the Company by
the sold asset from
year-begin to the
date of sale
Gains and
losses due to
selling the
asset
Whether a
related
transaction or
not
Explanation on
pricing
principle
Whether or not the
ownership of the
involved asset had
been transferred
whether or not the
relevant creditor’s
rights and
liabilities had been
transferred
Relationship
with the
Company
Xiamen Pinrui Hardware equipment 30 Apr. 2009 3.19 0.23 0.23
Xiamen Xingrongfei Hardware equipment 30 Apr. 2009 2.34 1.98 1.98
Fujian Hongyuan Die casting equipment 28 Feb. 2009 482.5 69.22 69.22
Zhangzhou Shengliang Die casting equipment 31 Mar. 2009 65.02 38.79 38.79
Xiamen Jingwei Hardware equipment 31 Jul. 2009 1.55 0.36 0.36
Xiamen Xingrongfei Hardware equipment 31 Jul. 2009 0.18 (0.03) (0.03)
Longhai Fushun Injection molding equipment 31 Jul. 2009 2.05 0.11 0.11
Suzhou Yifeng Die casting equipment 31 Aug. 2009 45.76 6.61 6.61
Xiamen Jingjing Die casting equipment 31 Aug. 2009 0.12 0.10 0.10
Xiamen Jingjing Die casting equipment 31 Aug. 2009 11.09 4.74 4.74
Zhangzhou Rijin Electronic equipment 31 MAY. 2009 59.91 9.02 9.02
Zhangzhou Yufeng Die casting equipment 31 Aug. 2009 306.93 31.81 31.81
Zhangzhou Hongkun Injection molding equipment 31 Aug. 2009 137.00 29.98 29.98
Zhangzhou Lize Die casting equipment 31 Jul. 2009 226.84 7.32 7.32
No No
Longhai Yingfa Bakelite equipment 30 Jun. 2009 58.96 13.96 13.96
Xiamen Bailong Hardware equipment 30 Jun. 2009 0.27 0.24 0.24
Xiamen Baigesi Injection molding equipment 31 Jul. 2009 20.77 3.63 3.63
Zhangzhou Bo’er Die casting equipment 30 Sep. 2009 13.31 6.72 6.72
Yes Yes
Total 6,800 541.00 541.008
3.2.2 The Company did not offer capital to the controlling shareholder or other related parties.
Neither did it provide external guarantees in violation of the prescribed procedures.
3.3 Particulars about fulfillment of commitments made by the Company, its shareholders or
actual controller
□Applicable √Inapplicable
3.4 Warnings of estimated losses or major changes of the accumulative net profit achieved during
the period from year-begin to the end of the next report period compared with the same period of
last year, as well as explanation on reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities investment
□Applicable √Inapplicable
3.5.2 Equity of other listed companies held by the Company
√Applicable □Inapplicable
Unit: (RMB) Yuan
Stock
code
Short
form of
stock
Initial
investment
Ratio to
equity of
invested
company
Book value
at
period-end
Profit and
loss in
report
period
Change of
owners’
equity in
report period
Accounting
entry
Source of
stock
600838
Shanghai
Jiubai
30,700.00 0.01 189,302.40 0 63,624.96
Financial assets
available for
sale
Corporate
share
Total 30,700.00 0.01 189,302.40 0 63,624.96
3.5.3 Particulars about compensation to the income as committed in the share merger reform and
the major asset reorganization
□Applicable √Inapplicable
3.5.4 Derivatives investment
√Applicable □Inapplicable
As a listed company, the Company has not been engaged in derivatives investment. And this
derivatives investment deal was conducted by the Company’s holding subsidiary—Tssan Kuen
Zhangzhou Enterprise Co., Ltd.—in order to avoid foreign exchange risks, which involved
buying and selling derivative financial products such as forward exchange and forward
purchase/sale of foreign currency.
Tssan Kuen Zhangzhou Enterprise Co., Ltd., the Company’s holding subsidiary, established the
Management Procedures for Trading Derivative Financial Products after the Procedures was
approved by the Board of Directors on 6 Mar. 2008.9
A. Particulars about position of derivatives investment, as well as the profit and loss
Currency
bought in
Estimated
exchange profit
Position Type Contracted sum and loss
Settlement period
(closing date)
(Converted
to RMB)
(Converted
to RMB)
Proportion
in net
assets
15
Buying and selling
forward exchange
JPY:750,000,000 Oct. 2009-Dec. 2009 54,537,618 (426,913) 15.16%
4
Forward purchase/sale of
foreign currency
USD:20,000,000 Nov. 2009-Jan. 2010 136,648,500 139,000 36.38%
B. Analysis on position risk of derivatives and measures to control risks
1. Analysis on position risk of derivatives: The contracted exchange rate and the actual market
rate on the settlement day might be different, which might lead to an exchange profit or loss.
2. Measures to control risks:
(1) Principle: The total amount of the Company’s contracted derivative financial products shall
not exceed the existing net position of asset liabilities (net position: total foreign currency
assets-total foreign currency liabilities) plus the net position of asset liabilities generated by
business in the future six months.
(2) Separation of different posts: Staff responsible for trading, settlement and authorization
worked separately.
(3) Regulating the procedures: When signing the contract, the trading staff should provide
adequate market information and risk warning to the authorizing staff and clarify to them the
possible risks and the feasibility of the deal. And the trading staff should also accomplish the
deal of derivative financial products under the authorization of the authorizing staff. All the
documents involved in the deal should be examined by the department of legal affairs; and the
settlement staff should receive authorization from the authorizing staff before the formal
settlement.
(4) Regular assessment: The Company kept an eye on the profit and loss from the fair value
changes of the derivative by checking daily/(monthly) the difference between the estimated
exchange rate (provided by the bank)*the undue contracted amount and the currency amount
when bought in.
(5) Loss limit: The loss limit was set at 6% of the total transaction amount.
(6) Checking and examination scheme: The checking and examination department conducted
regular checks on the transactions of derivative financial products and submit relevant
examination reports.
C. Fair value changes of purchased derivatives in report period
(1) Up until the report date, the settled derivative transactions has caused a loss of RMB 1.81
million, with the estimated loss of the unsettled transactions standing at 0.29 million;
(2) The former contracted bank provided monthly sheets of estimated exchange rates for the
undue contracted forward exchanges on the last trading day of the month;
(3) The profit and loss from fair value changes of the derivative was confirmed according to the
difference between the contracted amount undue by the month*the estimated exchange rate and
the currency amount when bought in.
D. There existed no significant changes between the Company’s accounting policy and specific
accounting principles of derivatives in the report period and those in the last report period.10
3.5.5 Contingencies
As to the customer complaints on the holdings subsidiary, Tsannkuen (Zhangzhou) Enterprise
Co.,Ltd ( here-in-after referred to as 'TKL') about the coffee grinders shipped to Starbucks
(Chinese name is called “星巴克”) during 2002-2008.After some negotiation, Starbucks and
U.S. consumer Product Safety Commission (hereinafter referred to as “CPSC”) agreed to
callback by goods replacement. The traders has placed an order with Tsann Kuen (Zhangzhou)
Enterprise Co., Ltd. for 40,000-set coffee grinders in the light of the quantity declared by the
consumers and the potential recall in the future. In the report period, no more such orders were placed.
As at the date of the announcement, TKL has been delivered 36,000-set finished products. The
influence on profit and loss is about RMB 1,180,400.
3.5.6 Researches, interviews and visits received in report period
In the report period, when receiving researches and interviews, the Company and relevant
information disclosure obligors abided by the Guide for Fair Information Disclosure of Listed
Companies, not conducting differential treatments or selectively and privately leak undisclosed
information to certain parties. And the researches and interviews received were listed as follows:
Time Place Way of
reception Visitor Main discussion and materials
provided by the Company
9 Jan. 2009 By telephone Mr. Zhang Operation status of the Company
15 Jan. 2009 By telephone Mr. Zhou Operation status of the Company
13 Feb. 2009 By telephone Ms. Lin Operation status of the Company
16 Feb. 2009 By telephone Ms. Chen Operation status of the Company
18 Feb. 2009 By telephone Mr. Luo Disclosure date of the annual report
18 Feb. 2009 By telephone Mr. Liu Operation status of the Company
25 Feb. 2009 By telephone Mr. Wang Disclosure date of the annual report
2 Mar. 2009 By telephone Mr. Chen Operation status of the Company
11 Mar. 2009 By telephone Mr. Cai Operation status of the Company
11 Mar. 2009 By telephone Mr. Li Operation status of the Company
13 Mar. 2009 By telephone Mr. Wang Operation status of the Company
19 Mar. 2009 By telephone Ms. Gao Operation status of the Company
27 Mar. 2009 By telephone Mr. Lin Operation status of the Company
10 Apr. 2009 By telephone Mr. Tang Operation status of the Company
10 Apr. 2009 By telephone Mr. He Operation status of the Company
16 Apr. 2009 By telephone Mr. Tang Operation status of the Company
5 May 2009 By telephone Mr. Feng Operation status of the Company
13 May 2009 By telephone Mr. Xie Operation status of the Company
8 Jun. 2009 By telephone Ms. Li Operation status of the Company
9 Jul. 2009 By telephone Mr. Liu Operation status of the Company
8 Sep. 2009
Company office
By telephone Mr. Ding Operation status of the Company
TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Chairman of the Board: Jian Derong
17 Oct. 200911
§4 Attachment
4.1 Balance Sheet
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Balance Sheet (Un-audited)
30 Sep. 2009
Unit: RMB Yuan
Closing balance Opening balance
Assets
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 392,873,040.47 630,112.01 416,506,274.82 4,939,594.77
Transaction financial asset - - - -
Notes receivable 2,303,627.79 - 5,823,544.00 -
Accounts receive bale 378,752,198.78 - 397,162,581.71 36,375.82
Account paid in advance 4,551,875.18 79,627.00 8,910,798.94 -
Interest receivable - - - -
Dividend receivable - - - -
Other account receivable 23,864,369.20 2,030,180.31 28,986,324.35 12,104,980.52
Inventories 375,632,803.47 - 451,226,252.40 -
Non-current assets due within 1 year - - - -
Other current assets - - - -
Total current assets 1,177,977,914.89 2,739,919.32 1,308,615,776.22 17,080,951.11
Non-current assets
Financial assets available for sale 189,302.40 189,302.40 109,771.20 109,771.20
Held to maturity investments - - - -
Long-term account receivable 105,651,269.52 - 68,487,888.93 -
Long-term equity investment 40,000.00 1,005,105,478.85 40,000.00 1,000,105,478.85
Investing property 36,244,410.33 36,909,899.22 37,454,887.11 43,714,625.57
Fixed asset 577,476,620.00 23,565,962.07 764,092,618.51 26,967,210.64
Project in construction 4,502,844.55 3,160,913.61 3,424,340.41 -
Engineering material - - - -
Fixed asset disposal - - - -
Bearer biological asset - - - -
Oil assets - - - -
Intangible assets 28,577,247.87 20,595,870.31 30,593,459.40 16,643,800.55
Development expense - - - -
Goodwill 737,834.86 - - -
Long-term expense to be apportioned 770,321.06 133,933.12 872,772.88 155,458.15
Deferred tax assets 18,592,398.57 - 22,678,901.17 -
Other non-current assets - - - -
Total of non-current assets 772,782,249.16 1,089,661,359.58 927,754,639.61 1,087,696,344.96
Total assets 1,950,760,164.05 1,092,401,278.90 2,236,370,415.83 1,104,777,296.07
Legal Representative: Jian Derong CFO: Chen Zongyi Person in charge of Accounting Office: Chen Zongyi Lister: Chen Zongyi12
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Balance Sheet-Continued (Un-audited)
30 Sep. 2009
Unit: RMB Yuan
Closing balance Opening balance
Liabilities and Shareholders’ Equity
Consolidation Parent company Consolidation Parent company
Current liabilities:
Short-term borrowings 663,219.29 - - -
Transaction financial liabilities 287,913.25 - - -
Notes payable 87,782,814.30 - 177,596,760.89 -
Account payable 663,031,282.99 1,746,862.34 754,405,955.98 142,211.99
Account received in advance 21,328,843.31 21,639.00 21,452,230.01 -
Employee’s compensation payable 42,331,135.55 114,586.63 48,805,639.01 111,791.55
Tax payable 49,579,196.16 68,160,407.73 44,278,598.83 69,208,975.75
Interest payable - - - -
Dividend payable - - - -
Other account payable 246,397,135.52 618,346,789.30 396,253,973.13 627,777,161.60
Non-current liabilities due within 1 year 68,290,000.00 - - -
Other current liabilities - - - -
Total current liabilities 1,179,691,540.37 688,390,285.00 1,442,793,157.85 697,240,140.89
Non-current liabilities:
Long-term borrowings - - 68,346,000.00 -
Bonds payable - - - -
Long-term accounts payable - - - -
Special accounts payable - - - -
Deferred income 46,492,720.55 - 43,400,202.15 -
Projected liabilities - - - -
Deferred tax liabilities 46,783.33 31,720.48 636,428.64 14,232.82
Other non-current liabilities - - - -
Total of non-current liabilities 46,539,503.88 31,720.48 112,382,630.79 14,232.82
Total liabilities 1,226,231,044.25 688,422,005.48 1,555,175,788.64 697,254,373.71
Shareholders’ equity
Share capital 1,112,350,077.00 1,112,350,077.00 1,112,350,077.00 1,112,350,077.00
Capital reserve 125,135,787.04 123,612,063.32 125,073,743.50 123,550,019.78
Less: Treasury Stock - - - -
Surplus reserves - - - -
Retained earnings (861,124,740.80) (831,982,866.90) (893,107,158.60) (828,377,174.42)
Foreign exchange difference (899,601.85) - (539,902.93) -
Total shareholders' equity attributable to
parent company
375,461,521.39 403,979,273.42 343,776,758.97 407,522,922.36
Minority interest 349,067,598.41 - 337,417,868.22 -
Total shareholder’s equity 724,529,119.80 403,979,273.42 681,194,627.19 407,522,922.36
Total liabilities and shareholders’ equity 1,950,760,164.05 1,092,401,278.90 2,236,370,415.83 1,104,777,296.07
Legal Representative: Jian Derong CFO: Chen Zongyi Person in charge of Accounting Office: Chen Zongyi Lister: Chen Zongyi13
4.2 Income statement during the reporting period
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Income Statement (Un-audited)
1 Jul.-30 Sep. 2009
Unit: RMB Yuan
Jul.-Sep. 2009 Jul.-Sep. 2008
Items
Consolidation Parent company Consolidation Parent company
I. Total revenue 705,296,161.86 1,633,727.82 1,084,748,011.58 2,313,665.31
Total sales 695,069,310.25 2,760,205.42 1,066,730,710.16 7,397,331.26
Less: sales cost 620,800,104.52 1,577,155.78 985,207,076.46 3,569,077.62
Taxes and associate charges 873,413.01 81,798.67 1,132,624.27 142,219.63
Sales expenses 22,340,569.47 - 25,082,256.42 -
Administrative expenses 52,046,676.80 1,230,594.64 46,385,032.20 1,906,530.57
Financial expense (3,570,480.13) 110,796.87 4,979,898.54 (1,037,012.05)
Impairment loss 2,579,026.58 (240,140.54) 3,943,822.27 2,816,515.49
Add: gain/(loss) from change in fair value (“-” means loss) 259,111.76 - (13,870,470.00) -
Gain/(loss) from investment (“-” means loss) (1,132,867.40) - 8,900,774.00 -
III. Business profit (“-” means loss) 9,353,095.97 (1,126,477.60) 13,047,605.42 (5,083,665.95)
Add: non-business income 9,035,708.60 154,752.42 6,675,414.67 887,441.57
Less: non-business expense 1,048,362.32 - (607,211.24) -
Including: loss from non-current asset disposal 203,451.94 - (607,211.24) -
IV. Total profit (“-” means loss) 17,340,442.25 (971,725.18) 20,330,231.33 (4,196,224.38)
Less: income tax expense 1,725,088.86 - 2,832,843.59 -
V. Net profit (“-” means loss) 15,615,353.39 (971,725.18) 17,497,387.74 (4,196,224.38)
Attributable to parent company 11,819,201.62 (971,725.18) 12,285,610.71 (4,196,224.38)
Minority interest 3,796,151.77 - 5,211,777.03 -
VI. Earnings per share
(I) Basic earnings per share 0.0106 0.0110
(II) Diluted earnings per share 0.0106 0.0110
VII. Other comprehensive income 1,935.36 30,915.42
VIII. Total comprehensive income 15,617,288.75 (971,725.18) 17,528,303.16 (4,196,224.38)
Total comprehensive income attributable to owner of parent
company
11,821,136.98 (971,725.18) 12,316,526.13 (4,196,224.38)
Total comprehensive income attributable to minority
shareholders
3,796,151.77 5,211,777.03
Legal Representative: Jian Derong CFO: Chen Zongyi Person in charge of Accounting Office: Chen Zongyi Lister: Chen Zongyi14
4.3 Income statement from the year-begin to the end of reporting peirod
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Income Statement (Un-audited)
1 Jan.-30 Sep. 2009
Unit: RMB Yuan
Jan.-Sep. 2009 Jan.-Sep. 2008
Items
Consolidation Parent company Consolidation Parent company
I. Total revenue 1,890,015,449.96 4,340,355.55 3,177,711,103.34 12,588,275.01
II. Total sales 1,859,613,441.68 8,725,357.77 3,163,598,396.87 16,291,657.89
Less: sales cost 1,649,014,966.94 4,222,276.10 2,911,209,470.58 12,860,315.28
Taxes and associate charges 2,719,457.34 225,821.80 2,895,309.65 531,494.54
Sales expenses 62,131,985.82 - 77,206,603.40 -
Administrative expenses 148,167,295.81 5,144,948.19 134,892,527.02 6,646,220.57
Financial expense (2,644,521.22) 616,820.10 31,272,763.98 (7,489,443.04)
Impairment loss 224,256.99 (1,484,508.42) 6,121,722.24 3,743,070.54
Add: gain/(loss) from change in fair value (“-” means loss) (287,913.25) - (8,885,350.00) -
Gain/(loss) from investment (“-” means loss) (1,808,428.37) 7,500.00 46,622,394.00 -
III. Business profit (“-” means loss) 28,305,666.66 (4,377,502.22) 51,849,750.47 (3,703,382.88)
Add: non-business income 20,245,884.11 769,094.81 16,234,051.55 3,710,274.86
Less: non-business expense 2,544,984.10 (2,714.93) 6,185,401.91 258,565.43
Including: loss from non-current asset disposal 1,223,976.71 (2,714.93) 2,916,824.71 258,565.43
IV. Total profit (“-” means loss) 46,006,566.67 (3,605,692.48) 61,898,400.11 (251,673.45)
Less: income tax expense 3,334,897.80 - 10,005,776.68 -
V. Net profit (“-” means loss) 42,671,668.87 (3,605,692.48) 51,892,623.43 (251,673.45)
Attributable to parent company 31,982,417.80 (3,605,692.48) 40,034,633.43 (251,673.45)
Minority interest 10,689,251.07 - 11,857,990.00 -
VI. Earnings per share
(I) basic earnings per share 0.0288 0.0360
(II) diluted earnings per share 0.0288 0.0360
VII. Other comprehensive income 62,043.54 120,383.22
VIII. Total comprehensive income 42,733,712.41 (3,605,692.48) 52,013,006.65 (251,673.45)
Total comprehensive income attributable to owner of
parent company
32,044,461.34 (3,605,692.48) 40,155,016.65 (251,673.45)
Total comprehensive income attributable to minority
shareholders
10,689,251.07 11,857,990.00
Legal Representative: Jian Derong CFO: Chen Zongyi Person in charge of Accounting Office: Chen Zongyi Lister: Chen Zongyi15
4.4 Cash flow statement from the year-begin to the end of reporting peirod
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Cash Flow Statement (Un-audited)
1 Jan.-30 Sep. 2009
Unit: RMB Yuan
Accumulative amount as of
reporting period
Accumulative Amount at the same
Items period of last year
Consolidation Parent company Consolidation Parent company
I. Cash flows for operating activities:
Cash received from sales of goods or rending of services 1,902,634,202.37 - 2,976,503,797.44 6,307,106.48
Refund of tax and fare received 92,087,126.18 284,154.60 94,977,814.85 -
Other cash received relating to operating activities 57,685,588.52 30,745,711.47 77,987,438.80 103,278,300.78
Sub-total of cash inflows 2,052,406,917.07 31,029,866.07 3,149,469,051.09 109,585,407.26
Cash paid for goods and services 1,486,435,557.73 122,176.65 2,367,773,326.85 403,565.70
Cash paid to and on behalf of employees 253,361,643.42 22,801,699.13 343,474,024.91 24,043,082.09
Tax and fare paid 15,622,497.93 2,024,664.73 26,160,343.04 4,082,033.50
Other cash paid relating to operating activities 185,255,985.89 6,270,515.25 322,885,889.23 119,958,305.71
Sub-total of cash outflows 1,940,675,684.97 31,219,055.76 3,060,293,584.03 148,486,987.00
Net cash flow from operating activities 111,731,232.10 (189,189.69) 89,175,467.06 (38,901,579.74)
II. Cash Flows from Investment Activities:
Cash received from return of investments 1,061,500.00 - - -
Cash received from investment income 7,500.00 7,500.00 - -
Net cash received from disposal of fixed assets, intangible assets and
other long-term assets 17,165,208.34 - 15,022,653.10 9,637,071.77
Net cash received from disposal of subsidiaries and other operating units - - - -
Other cash received relating to investment activities - - - 39,611,023.00
Sub-total of cash inflows 18,234,208.34 7,500.00 15,022,653.10 49,248,094.77
Cash paid for acquiring fixed assets, intangible assets and other long-term
assets 37,883,916.73 1,939,914.00 41,903,372.82 108,423.00
Cash paid for acquiring investments 1,725,000.00 5,000,000.00 - 13,473,600.00
Net cash used in acquiring subsidiaries and other operating units - - - -
Other cash paid relating to investment activities - - - -
Sub-total of cash outflows 39,608,916.73 6,939,914.00 41,903,372.82 13,582,023.00
Net cash flow from investing activities (21,374,708.39) (6,932,414.00) (26,880,719.72) 35,666,071.77
III. Cash Flows from Financing Activities:
Cash received from absorbing investment - - 50,000.00 -
Including: Cash received from increase in minority interest - - - -
Cash received from borrowings 266,013,820.76 157,261,700.00 515,382,569.19 384,730,200.00
Cash received from issuance of bonds - - - -
Other cash relating to financing activities - 120,000,000.00 - -
Sub-total of cash inflows 266,013,820.76 277,261,700.00 515,432,569.19 384,730,200.00
Cash paid for settling debt 384,294,974.87 274,400,368.22 704,477,661.79 -
Cash paid for distribution of dividends or profit or reimbursing interest - - - -
Including: dividends or profit paid to minority interest - - - -
Other cash payments relating to financing activities - - - 383,561,900.00
Sub-total of cash outflows 384,294,974.87 274,400,368.22 704,477,661.79 383,561,900.00
Net cash flow from financing activities (118,281,154.11) 2,861,331.78 (189,045,092.60) 1,168,300.00
IV. Effect of foreign exchange rate changes (308,586.25) (49,210.85) (7,418,780.96) (584,029.64)
V. Increase in cash and cash equivalents (28,233,216.65) (4,309,482.76) (134,169,126.22) (2,651,237.61)
Add: Cash and cash equivalents at year-begin 399,276,546.68 4,939,594.77 534,372,308.53 3,722,741.66
VI. Cash and cash equivalents at the end of the year 371,043,330.03 630,112.01 400,203,182.31 1,071,504.05
Legal Representative: Jian Derong CFO: Chen Zongyi Person in charge of Accounting Office: Chen Zongyi Lister: Chen Zongyi
