TSANN KUEN (CHINA) ENTERPRISE CO., LTD
THE FIRST QUARTERLY REPORT 2010
§1. Important Notice
1.1 The Board of Directors, Supervisory Committee, and Directors, Supervisors as well as Senior
Management Staff 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 directors, supervisors or senior executives demonstrated uncertainty or disagreement
about the truthfulness, accuracy, and integrity of the first quarterly report.
1.3 All directors attended the Board Meeting, at which reviewed and approved the first quarterly
report.
1.4 Financial report of the first quarterly report period has not been audited.
1.5 Mr. Jian Derong, Chairman of the Board, and Mr. Chen Zongyi, Accounting Manager, jointly
guaranteed that financial statements in this annual report are authentic and complete.
[English Translation for Reference Only. Should there be any inconsistency between the Chinese
and English versions, the Chinese version shall prevail.]
§2 Company Profile
Short form of stock Min Tsann Kuen B
Stock code 200512
Secretary of the Board Securities Affairs Representative
Name Luo Qing Xing Sun Mei Mei
Contact address TSANN KUEN Industrial Park, Longchi
Development Zone, Zhangzhou, Fujian
TSANN KUEN Industrial Park, Longchi
Development Zone, Zhangzhou, Fujian
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 end of the
reporting period At the end of last year Increase/decrease (%)
Total assets 1,960,812,937.15 2,117,764,266.23 (7.41)
Owner’s equity attributable to shareholders of listed
company 415,413,622.61 396,565,377.00 4.75
Share capital 1,112,350,077.00 1,112,350,077.00 0.00
Net asset per share attributable to shareholders of listed
company 0.37 0.36 2.78
Items Reporting period Same period of last year Increase/decrease (%)
Sales turnover 765,386,616.25 577,748,701.77 32.48
Net profit attributable to shareholders of listed company 18,445,684.38 9,265,540.95 99.08
Net cash flow arising from operating activities 47,910,849.17 (17,067,388.48) 380.72
Net cash flow per share arising from operating activities 0.04 (0.02) 300.00
Basic earnings per share 0.02 0.01 100.00
Diluted earnings per share 0.02 0.01 100.00
Weighted average return on equity 4.54% 2.50% 2.04
Weighted average return on equity after deducting
extraordinary gains and losses 3.61% 1.74% 1.87
Items of extraordinary gains and losses
Unit: RMB Yuan
Items Amount from 1 Jan. to 31 Mar. 2010
Gains on disposal of non-current assets 2,859,362.31
Government grant recognized in current year, except for those acquired in the ordinary course
of business or granted continuously in certain standard quota according to relevant national
laws and regulations
1,260,563.47
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 other than effective hedging business related
to normal operation business of the Company
333,031.31
Other non-operating income and expense other than abovementioned 816,994.28
Income tax of extraordinary gains and losses (238,299.21)
Net profit after deducting extraordinary gains and losses attributable to minority shareholders (1,233,272.02)
Total 3,798,380.14
Explanation on important items of extraordinary gains and losses: N/A3
2.2 Total number of shareholders at the end of the reporting period and statement on shares held by
the top ten shareholders holding tradable shares
Unit: Share
Total number of shareholders
33604
Shares held by top ten tradable shareholders
No. Name of shareholders Number of tradable share 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 46,214,902 B-share
4 TIMMERTON CO INC 14,505,644 B-share
5 CSC SECURITIES (HK) LTD. 6,432,179 B-share
6 CHEN YONG QING 5,854,989 B-share
7 CHEN LI JUAN 5,694,746 B-share
8 HE JIAN XIONG 4,439,551 B-share
9 TSAI SHU HUI 4,294,433 B-share
10 CHEN YONG QUAN 3,643,844 B-share
Explanation on related relationship and action-in-concert among
above mentioned shareholders
The top three shareholders are the controlling shareholders. Tsai
Shuhui is a spouse of Wu Tsann Kuen, 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.4
§3 Significant Events
Sales of assets
The Company disclosed the Public Notice on Selling Some Operation Assets of Accessory Factory
by Controlling Subsidiary Zhangzhou Tsann Kuen, the Public Notice on Progress of Sales of Some
Operation Assets of Accessory Factory By Controlling Subsidiary and New Asset Sale, and the
Public Notice on Progress of Sales of Some Operation Assets of Accessory Factory by Controlling
Subsidiary and Another New Asset Sale on Securities Times, HK Ta Kung Pao and
http://www.cninfo.com.cn respectively on 29 Jul. 2009, 21 Jan. 2009 and 28 Apr. 2009. As at 31
Mar. 2010, the relevant progress is as follows:
Unit: RMB 0’000
Transaction
party
Asset sold
Date of
selling
Selling
price
Net profit
contributed by the
sold asset to the
Company from the
year-begin to the
selling date
Gains and
losses
arising
from such
sale
Related
transaction
or not
Explanation
on pricing
principle
Property right
of asset was
transferred or
not
Relevant
credits and
liabilities were
transferred or
not
Related
relationship
Xiamen
Pinrui
Hardware
equipment 31 Jan. 2010 60.00 9.30 9.30
Hongyuan
Electronic
Electronic
equipment 31 Jan. 2010 71.67 31.35 31.35
Zhangzhou
Ruicheng
Die casting
equipment 31 Jan. 2010 11.00 1.10 1.10
Suzhou
YIFAN
Bakelite
equipment 31 Jan. 2010 4.00 3.92 3.92
Xiamen
Jingjing
Die casting
equipment 31 Jan. 2010 8.65 0.99 0.99
Yes Yes
Zhangzhou
Shengyuan
Hardware
equipment 28 Feb. 2010 142.60 9.14 9.14 No No
Longhai
Yingfa
Bakelite
equipment 28 Feb. 2010 171.17 15.59 15.59 No No
Longhai
Yingfa
Bakelite
equipment 28 Feb. 2010 0.71 0.61 0.61 Yes Yes
Zhangzhou
Bo’er
Die casting
equipment 28 Feb. 2010 163.30 (17.45) (17.45)
Zhangzhou
Xiangkun
Hardware
equipment 31 Mar. 2010 221.38 9.84 9.84
Zhangzhou
Lanboni
Injection molding
equipment 31 Mar. 2010 173.00 17.50 17.50
No No
Zhangzhou
Hongkun
Injection molding
equipment 31 Mar. 2010 0.50 0.43 0.43 Yes Yes
Zhangzhou
Hewang
Bakelite
equipment 31 Mar. 2010 155.44 7.89 7.89 No No
Xiamen
Jingjing
Bakelite
equipment 31 Mar. 2010 25.34 4.07 4.07 Yes Yes
Zhangzhou
Kerui
Die casting
equipment 31 Mar. 2010 115.00 23.42 23.42 No No
Zhangzhou
Kerui
Die casting
equipment 31 Mar. 2010 2.96 0.40 0.40
Zhangzhou
Ruicheng
Die casting
equipment 31 Mar. 2010 0.50 0.35 0.35
Xiamen
Jingjing
Die casting
equipment 31 Mar. 2010 5.70 0.89 0.89
Non-related
company
The
transaction
prices were
decided
based on
the principle
of being
above the
net book
value, as
well as
based on
the
assessment
and market
prices.
Yes Yes
Non-related
company
Total 1332.92 119.34 119.345
3.1 Significant changes in major accounting data, financial highlights and reasons for these changes.
√Applicable □Non-applicable
Unit: RMB’0000
No. Items Closing
amount
Opening
amount
Increase/
decrease
%
Notes to reason for the change
1 Monetary funds 44,950.64 63,227.47 -28.91% Repayment of borrowings to the bank and
the controlling shareholder in Jan. 2010.
2 Transaction financial
assets 74.47 158.87 -53.13%
The transaction financial assets were due,
the part of which was recognized under the
item “investment income”.
3 Other receivables 4,312.02 1,485.31 190.31%
The Company failed to receive tax refunds
of RMB 18.94 million due to upgrade of tax
system for export tax rebate in March 2010.
4 Financial assets available
for sale 43.12 29.36 46.86%
The equities of Shanghai Join Buy Co., Ltd.
that were not controlled, jointly controlled
or had a significant influence belonged to
the item of financial assets available for
sale. And the difference between the fair
value and book value of such equities was
included in the capital reserve.
5 Construction in progress 569.04 465.60 22.22% Increase of mould contract, resulting in
payment of initial and interim payment
6 Long-term deferred
expense 101.64 129.48 -21.50% Influence of amortization amount in the first
quarter.
7 Notes payable 7,174.59 5,637.03 27.28% Increase of operating revenue, as well as
increase in relevant items year-on-year.
8 Advances from customers 1,971.80 1,468.00 34.32% Increase of operating revenue, as well as
increase in relevant items year-on-year.
9 Other payables 8,527.02 25,653.17 -66.76% Repayment of USD 23 million to the
controlling shareholder.
10 Long-term borrowing due
within one year 0.00 6,828.20 -100.00% loan repayment due to expiration
11 Accrued liabilities 88.42 161.90 -45.39%
Exemption agreements were signed between
the Company and suppliers in succession,
resulting in writing back accrued liabilities.
No. Items Jan. –Mar.
2010 Jan.-Mar.2009
Increase/
decrease
%
Notes to reason for the change
1 Sales turnover 76,538.66 57,774.87 32.48% Economic recovery, resulting in increase of
operating revenue
2 Operating cost 66,544.99 49,996.84 33.10% Increase of operating revenue, as well as
increase in relevant items year-on-year.
3 Sales expense 2,591.08 1,684.40 53.83% Export expense increased by 19%, and
increase of commission and claim payment.
4 Financial expense (136.65) 192.96 -170.81% Year-on-year decrease in exchange, interest
income and bank commission.
5 Loss on assets impairment 135.42 (57.46) -335.70%
Accounts receivable of RMB 1.35 million
was withdrawn as bad debt according to the
accounting policy in this reporting period,
while long-term accounts receivable of
RMB 1.53 million was written back due to
the change of accounting policy over the
same period of last year.
6 Income from change in
fair value (84.40) 40.02 -310.90% Due financial assets was recognized under
the item “investment income”.
7 Investment income 118.45 0.75 15693.84% Due financial assets was recognized under
the item “investment income”.
8 Non-operating expenses 18.33 102.91 -82.19%
Donation outlay at the same period of last
year and loss on sale of assets amounting to
RMB 830,000.6
3.2 Process of significant events and influence, as well as analysis and explanation on resolving proposal
√Applicable □Non-applicable
As for Transfer Equities of EUPA Industry Corporation Ltd and related transaction, please refer to
the Public Notice on Transferring Equities of EUPA Industry Corporation Ltd and Related
Transaction published on Securities Times, Ta Kung Pao and http://www.cninfo.com.cn on 26 Mar.
2006 for details, as at the report date, the relevant progress is as below:
In accordance with mode of payment stipulated in the Item II of the Equity Transfer Agreement, the
party B should pay down-payment to the party A within 10 days from the date of approval by the
department authorized by the government after the Agreement was signed. At present, the Company
got the Approval Letter on 12 Apr. 2010. On 13 Apr. 2010, the Company received the first
installment amounting to USD 580,000 from SINO Global Development .
Zhangzhou Tsann Kuen, subsidiary of the Company, and Longhai Chaoda Industrial Co., Ltd
(hereinafter refer to as “Chaoda”) has signed Cooperation Framework Agreement, Agreement on
Transfer and Lease of Working Assets etc. on 12 Apr. 2008, on which contracted that Zhangzhou
Tsann Kuen would purchase products from Chaoda; meanwhile, it contracted that Chaoda would
purchase and lease equipment from Zhangzhou Tsann Kuen, and will hired workshop of Zhangzhou
Tsann Kuen which locate Longchi Development Zone to put in production.
On 3 Nov. 2009, Chaoda sued to Fujian Zhangzhou Intermediate People’s Court, claimed to
eliminate agreement on purchase & sales and lease, and claimed Zhangzhou Tsann Kuen returned
payment for equipment transfer and rent totaling RMB 8,174,960; and requested the court to judge
that Zhangzhou Tsann Kuen compensate its loss totaling RMB 12.6 million and return deposit of
RMB 200,0000. Object of the two cases totaled RMB 20,974,960.
Zhangzhang Tsann Kuen requested the court to dismiss all the claims except for protest against
violation of Longda. Meanwhile, Zhangzhou Tsann Kuen appealed counterclaim and requested
Longda pay balance of RMB 4,042,110.00 for equipment transfer.
As for the report day, the intermediate people's court of Zhangzhou Municipality had heard the said
two principal claims raised by Longhai Chaoda and counterclaim raised by Zhangzhou Tsann Kuen.
As for case of equipment, the court confirmed that Chaoda failed to pay the transfer payment for
equipment amounting to RMB 4,042,110 to Zhangzhou Tsann Kuen, and shall make an inventory to
the equipment in the near future. As for the case of default losses, Longhai Chaoda only provided
the data calculated by it through its conjecture without warranty by the facts. At present, the said
case is on the docket for the final judgment from the Court.
3.3 Special commitments made by the company, shareholders and actual controllers
□Applicable √Non-applicable
3.4 Warnings of possible loss or large-margin change of the accumulated net profit made during the
period from the beginning of the year to the end of the next report period compared with the same
period of the last year according to prediction, as well as explanations on the reasons
□Applicable √Non-applicable
3.5 Other significant events need to be explained
3.5.1 Securities investment
□Applicable √Non-applicable7
3.5.2 Equity of other listed companies held by the Company
√Applicable □Non-applicable
Unit: (RMB) Yuan
Stock
code
Short form
of stock
Initial
investment
Ratio to
equity of
invested
company (%)
Book value at
year-end
Profit and
loss in the
reporting
period
Change of
owners’
equity in the
report period
Accounting
item
Source of
stock
600838 Shanghai
Jiubai
30,700.00 0.01 431,222.40 0 107,321.76
Financial
assets
available
for sale
Corporation
share
Total 30,700.00 0.01 431,222.40 0 107,321.76
3.5.3 Reception of research, interviews and visits in the reporting period
In the report period, according to Guidelines on Fair Information Disclosure of Listed Companies,
the Company and the persons charged with the information disclosure strictly followed the principle
of fair information disclosure, didn’t conduct treatment difference policy, neither did they disclose
important information of the Company which didn’t publish to any particular object privately by
choice in the process of investigation and visit acceptance. The details were as follows:
Reception time Reception place Reception
way
Reception
object
Major discussion content and the information
provided by the Company
19 Jan. 2010 Telephone Miss Fang Operation status of the Company
25 Feb.2010
Company office
Telephone Mr. Ding Operation status of the Company
3.5.4 Explanation on other significant events
3.5.4.1 The Company did not provide capital to its controlling shareholder or other related parties or
external guarantee in violation of prescribed procedures.
3.5.4.2 There was no shareholding increase plans put forward or carried out in the reporting period
by shareholders holding over 30% shares of the Company.
3.5.4.3 Significant contract in the reporting period
√Applicable □Non-applicable
I. Zhangzhou Tsann Kuen, the controlling subsidiary of the Company, entered into Cooperation
Framework Agreement, Purchase Agreement on Operation Assets and Agreement of Supply of Raw
Materials for Production with Shanghai Sigma Metals Inc. (hereinafter referred to as Shanghai
Sigma) on Dec. 31, 2006 and the main contents of agreements include: Expect for sale of the
operation assets, Zhangzhou Tsann Kuen would transfer the business opportunities to Shanghai
Sigma with the total transaction amount of RMB 100 million, which becomes the main supplier of
raw materials of aluminum products purchased by the Company later, settlement price per ton
would be determined according to decreasing amount and proportion stipulated by two parties. In
accordance with Purchase Agreement on Operation Assets, Shanghai Sigma would pay the first
installment amounting to RMB 38 million, the rest RMB 62 million would be deducted from the
processing expense for molten aluminum by the month, which Zhangzhou Tsann Kuen entrusted
Shanghai Sigma to do production. Zhangzhou Tsann Kuen committed that it shall, within three
years following Agreement of Supply of Raw Materials for Production into force, purchase molten
aluminum (aluminum pig) from Shanghai Sigma with purchase volume not less than 70% of total8
demands of Zhangzhou Tsann Kune for molten aluminum (aluminum pig). In case of expiration of
three year, because of a shortage of orders, Zhangzhou Tsann Kuen fails to deducted fully the
balance from processing expense, it shall agree to give extension to Agreement of Supply of Raw
Materials for Production, the balance owed shall continue to deduct through business cooperation
till full deduction. If executive termination due to responsibility of Zhangzhou Tsann Kuen, the
balance owed shall not be paid by Shanghai Sigma, if executive termination due to responsibility of
Shanghai Sigma, the balance owed shall be paid by Shanghai Sigma one-off.
The above contract has been expired on 28 Feb. 2010, for the purpose of keeping the normal
operation of the both parties, both the Company and Shanghai Sigma was negotiating about renewal
of the contract. As at the balance sheet date, the balance of RMB 39,746,220.40 failed to be carried
down, and was included in the subject of “long-term accounts receivable” and “other non-current
liabilities” for calculation.
II. Zhangzhou Tsann Kuen, subsidiary of the Company, and some supporting manufacturers signed
agreement on purchase of raw materials and parts & accessories with the bottom amount. The
agreement stimulated that the balance would return to manufactures with discount on purchase in
case that the actual purchase amount was lower than the bottom amount. Up to the balance sheet
date, Zhangzhou Tsann Kuen and some of supporting manufacturers signed supplementary
agreement on exemption, and withdrew accrued liabilities totaling RMB 884,161.90 for supporting
manufacturers who had not sign agreement on exemption yet according to agreement.
3.5.5 Changes in scope of consolidation
1. Reduction of subsidiary companies in current period
□Applicable √Non-applicable
2. Additional subsidiary companies in current period
√Applicable □Non-applicable
Unit: RMB Yuan
Name Date Closing net
assets
Profit as of reporting
period
The scope of consolidation and
reason for change
Shenzhen Canbao Commerce &
Trade Co., Ltd. 29 Mar. 2010 1,000,000.00 0.00
Subsidiary newly established,
the Company holds 74.25% of
shares of this company indirectly
Shenzhen Canbao Commerce & Trade Co., Ltd. (hereinafter referred to as “Shenzhen Canbao”) was
established by Shanghai Star Travel Commerce & Trade Co., Ltd., the subsidiary of South Port
Electronics (the subsidiary of the Company), through capital contribution in monetary funds on 29
Mar. 2010. The registered capital of Shenzhen Canbao is RMB 1,000,000.00. Shanghai Star Travel
Commerce & Trade Co., Ltd. holds 100% equities of Shenzhen Canbao.
3.6 Derivative Investment
√Applicable □Non-applicable
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—Zhangzhou
Tsann Kuen 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.
Zhangzhou Tsann Kuen Enterprise Co., Ltd., the Company’s holding subsidiary, established the
Management Procedures for Trading Derivative Financial Products after the Procedures was9
approved by the Board Meeting on 6 Mar. 2008.
Analysis on risks and control
measures of derivative products
held in the report period
(including but not limited to
market risk, liquidity risk, credit
risk, operation risk, law risk,
etc.)
1. Analysis on risks from holding of derivative products: gains or losses from difference between
contracted exchange rate and market exchange rate on value date.
2. Control measures:
(1) Principle: total amount of whole contracted derivative financial commodities will not exceed sum of
net position (net position: total foreign currency assets- total foreign currency liabilities) of current
assets liabilities plus net position arising from business of the Company in the next 6 months.
(2) Separation of post: separation of post of trader, dealer and authorization.
(3) Normalization of procedure: trader should offer sufficient market information and risks to people
who was authorized, clarify possible risks, consider feasibility of transaction when sign the contract, and
complete derivative financial commodities trade with authorization. Documents referring to contract
trade need examination of legal affairs ministry, and the dealer will requested to be authorized when
complete business transaction.
(4) Periodic evaluation: 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: contracted losses mustn’t exceed 6% of total trading amount.
(6) Audit system: Audit ministry audits derivative audit trade of derivative financial products
periodically and submit audit report.
Changes of market prices or fair
values in the report period of the
invested derivatives. And the
analysis on the fair value of the
derivatives should include the
specific use methods and the
relevant assumptions and
parameters.
(1) Gains and losses effected by completed transaction amount of derivative products was RMB 1.177
million, and loss from undelivered transaction was RMB 0.844 million in the report period;
(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.
Whether significant changes
occurred to the Company’s
accounting policy and specific
accounting principles of
derivatives in the report period
compared to the previous report
period
There were 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.
Specific opinion from
independent directors, sponsors
or financial consultants on the
Company’s derivatives
investment and risk control
Derivative investment, which was operated by Zhangzhou Tsann Kuen, controlling subsidary of the
Company, was performance of signed contract. Then they will execute the examination and review
procedure of the Board Meeting or Shareholder’s Meeting in accordance with regulations and execute
obligation of information disclosure in time.
3.6.1 Derivatives held as at the end of the report period
√Applicable □Non-applicable
Unit: RMB Yuan
Type of contract Beginning contract
amount
Closing contract
amount
Gain or loss in the
reporting period
Proportion of the closing
contract amount in the
closing net assets of the
Company (%)
Forward foreign
exchange trade 33,966,028.92 15,253,243.86 (846,506.90) 3.67%
Forward transaction 136,619,000.00 238,986,000.00 2,500.00 57.53%
Total 170,585,028.92 254,239,243.86 (844,006.90) 61.20%10
§4 Attachment
4.1 Balance sheet
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Balance Sheet (Un-audited)
As at Mar. 2010
Unit: RMB Yuan
Closing Amount Opening amount
Assets
Consolidation Parent Company Consolidation Parent Company
Current Assets:
Monetary Funds 449,506,398.97 1,397,533.13 632,274,671.72 494,441.23
Tradable financial assets 744,654.48 1,588,661.38
Notes receivable 5,315,920.93 5,851,328.67
Account receivables 403,500,630.37 389,834,241.91
Advances to suppliers 5,204,311.02 249,613.95 4,382,912.72 48,231.48
Interest receivables
Dividends receivable
Other receivables 43,120,226.63 3,059,347.59 14,853,085.85 230,037.15
Inventories 379,546,001.19 350,258,713.95
Non-current assets due within
one year
Other current assets
Total current assets 1,286,938,143.59 4,706,494.67 1,399,043,616.20 772,709.86
Non-current assets:
Available-for-sale financial
assets 431,222.40 431,222.40 293,630.40 293,630.40
Held-to-maturity investments
Long-term account receivables 110,787,593.21 99,661,083.56
Long-term equity investments 40,000.00 1,005,105,478.85 40,000.00 1,005,105,478.85
Investment properties 32,035,975.49 34,666,291.79 33,666,204.47 35,507,404.55
Fixed assets 467,449,095.35 18,277,864.31 519,670,147.89 19,068,274.15
Construction in progress 5,690,411.65 3,940,834.04 4,656,021.02 3,632,934.04
Construction materials
Liquidation of fixed assets
Production biology assets
Oil and gas assets
Intangible assets 26,907,741.83 20,076,831.69 27,735,258.23 20,330,648.46
Development expenses
Goodwill 996,979.09 996,979.09
Long-term deferred assets 1,016,435.09 119,583.10 1,294,834.29 126,758.11
Deferred income tax assets 28,519,339.45 30,706,491.08
Other non-current assets
Total non-current assets 673,874,793.56 1,082,618,106.18 718,720,650.03 1,084,065,128.56
Total assets 1,960,812,937.15 1,087,324,600.85 2,117,764,266.23 1,084,837,838.4211
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Balance Sheet –Con. (Un-audited)
As at 31 Mar. 2010
Unit: RMB Yuan
Closing Amount Opening amount
Assets
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans
Tradable financial liabilities
Notes payables 71,745,934.21 56,370,310.39
Account payables 871,195,884.97 728,829.66 837,178,756.46 1,665,294.11
Advances from customers 19,718,012.60 14,680,017.93
Payroll payables 40,678,628.18 120,832.94 48,929,470.49 113,858.79
Taxes and fares payable 49,906,605.18 68,937,781.02 40,091,138.11 68,631,609.07
Interest payables
Dividend payables
Other account payables 85,270,235.83 613,000,436.26 256,531,703.89 616,799,841.82
Non-current liabilities due within
one year 68,282,000.00
Other current liabilities
Total current liabilities 1,138,515,300.97 682,787,879.88 1,322,063,397.27 687,210,603.79
Non-current liabilities:
Long-term borrowings
Bond payable
Long-term account payable
Deferred incomes
Accrued liabilities 884,161.90 1,618,986.20
Deferred income tax liabilities 199,813.11 88,114.93 296,143.90 57,844.69
Other non-current liabilities 44,871,698.78 40,106,220.40
Total non-current liabilities 45,955,673.79 88,114.93 42,021,350.50 57,844.69
Total liabilities 1,184,470,974.76 682,875,994.81 1,364,084,747.77 687,268,448.48
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 125,321,312.59 123,797,588.87 125,213,990.83 123,690,267.11
Less: inventory shares
Surplus reserve
General risk reserve
Retained earnings (821,943,155.69) (831,699,059.83) (840,347,470.50) (838,470,954.17)
Exchange difference (314,611.29) (651,220.33)
Total equity attributable to the
holders of parent company 415,413,622.61 404,448,606.04 396,565,377.00 397,569,389.94
Minority interests 360,928,339.78 357,114,141.46
Total shareholders’ equity 776,341,962.39 404,448,606.04 753,679,518.46 397,569,389.94
Total liabilities and shareholders’
equity 1,960,812,937.15 1,087,324,600.85 2,117,764,266.23 1,084,837,838.42
Prepared by Tsann Kuen (China) Enterprise Co., Ltd.
Legal Representative: Jian Derong CFO: Chen Zongyi Accounting Manager: Chen Zongyi12
4.2 Income Statement
Tsann Kuen (China) Enterprise Co., Ltd.
Income Statement (Un-audited)
1 Jan.-31 Mar. 2010
Unit: RMB Yuan
Jan. – Mar. 2010 Jan. – Mar.2009
Items
Consolidation Parent Company Consolidation Parent Company
I. Total operating revenues 765,386,616.25 1,519,018.01 577,748,701.77 1,467,310.50
II. Total operating cost 743,281,526.43 2,695,449.83 567,161,640.20 4,134,470.91
Less: Operating cost 665,449,907.42 1,473,143.30 499,968,355.39 1,436,833.51
Business taxes and surtax 1,042,276.29 76,031.62 1,122,723.93 73,732.59
Selling expenses 25,910,761.19 16,844,004.28
Administrative expenses 50,890,790.47 1,574,840.54 47,871,493.75 1,998,357.36
Financial costs (1,366,457.41) 22,156.93 1,929,636.45 385,828.92
Impairment loss of assets 1,354,248.47 (450,722.56) (574,573.60) 239,718.53
Add: Gains from the fair value changes (The loss
is listed beginning with “-“) (844,006.90) 400,184.39
Investment income (The loss is listed beginning
with “-“) 1,184,538.21 7,849,213.97 7,500.00 7,500.00
Including: the investment income from associated
and joint ventures enterprises
III. Operating profit 22,445,621.13 6,672,782.15 10,994,745.96 (2,659,660.41)
Add: Non-operating income 5,120,196.58 99,112.19 4,690,529.35 526,848.45
Less: Non-operating expense 183,276.52 1,029,050.35 (3,125.79)
Including: Loss from disposal of non-current
assets 183,276.52 831,805.87
IV. Total profits (The loss is listed beginning with
“-“) 27,382,541.19 6,771,894.34 14,656,224.96 (2,129,686.17)
Less: Income tax expense 2,453,123.41 1,903,026.99
V. Net profits (the net loss is listed beginning with
“-”) 24,929,417.78 6,771,894.34 12,753,197.97 (2,129,686.17)
Net profits attributable to equity holders of the
parent company 18,445,684.38 6,771,894.34 9,265,540.95 (2,129,686.17)
Minority interests 6,483,733.40 3,487,657.02
VI. Earnings per share
1. Basic earnings per share 0.02 0.01
2. Diluted earnings per share 0.02 0.01
VII. Other comprehensive gains 443,930.80 (110,357.50)
VIII. Total comprehensive gains 25,373,348.58 6,771,894.34 12,642,840.47 (2,129,686.17)
Attributable to shareholders of parent company 18,889,615.18 6,771,894.34 9,155,183.45 (2,129,686.17)
Attributable to minority shareholders 6,483,733.40 3,487,657.02
Prepared by Tsann Kuen (China) Enterprise Co., Ltd.
Legal Representative: Jian Derong CFO: Chen Zongyi Accounting Manager: Chen Zongyi13
4.3 Cash Flow Statement
Tsann Kuen (China) Enterprise Co., Ltd.
Cash Flow Statement (Un-audited)
1 Jan.-31 Mar. 2010
Unit: RMB Yuan
Jan. – Mar. 2010 Jan. – Mar.2009
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows from operating activities:
Cash received from sales of goods or rendering of services 757,929,692.49 694,634,048.06
Tax refund 49,601,510.57 39,832,838.47
Cash received related to other operating activities 20,767,380.01 10,860,348.65 20,812,493.27 9,571,107.36
Subtotal of cash inflow 828,298,583.07 10,860,348.65 755,279,379.80 9,571,107.36
Cash paid for purchasing goods and receiving services 600,565,170.61 629,930,367.48 97,875.24
Cash paid to and on behalf of employees 88,976,481.56 8,814,086.55 82,053,671.94 8,049,475.30
Tax payments 6,505,020.50 1,017,765.88 4,604,107.30 844,585.11
Cash paid to other operating activities 84,341,061.23 9,149,387.14 55,758,621.56 2,287,988.26
Subtotal of Cash outflow 780,387,733.90 18,981,239.57 772,346,768.28 11,279,923.91
Net cash flow arising from operating activities 47,910,849.17 (8,120,890.92) (17,067,388.48) (1,708,816.55)
II. Cash flows from investing activities
Cash received from disposals of investments
Cash received from returns on investments 7,500.00 7,849,213.97 7,500.00 7,500.00
Net cash received from disposals of fixed assets and
intangible assets 5,820,974.43 5,013,299.10
Net cash received from disposal of subsidiaries and
other business units
Cash received related to other investing activities
Subtotal of cash inflow 5,828,474.43 7,849,213.97 5,020,799.10 7,500.00
Cash paid to purchase fixed assets, intangible assets
and other long-term assets 8,663,435.33 1,240,357.88 11,903,131.66
Cash paid for investments 222,000.00 5,000,000.00
Net cash paid to acquire subsidiaries and other business
units
Cash paid to other investing activities
Subtotal of Cash outflow 8,885,435.33 1,240,357.88 11,903,131.66 5,000,000.00
Net cash flow arising from investing activities (3,056,960.90) 6,608,856.09 (6,882,332.56) (4,992,500.00)
III. Cash flows from financing activities
Cash received from absorbing investments
Including: Cash received from subsidiary absorbing
investments from minority shareholders
Cash received from borrowings 198,581,782.40 157,261,700.00
Cash received related to other financing activities 160,000,000.00 120,000,000.00
Subtotal of cash inflow 0.00 160,000,000.00 198,581,782.40 277,261,700.00
Repayment of loans or debts 225,948,239.46 157,577,962.02 293,362,263.82 274,400,368.22
Cash paid for dividends, profits, or interests 2,352,514.18
Including: Dividends and profits paid by subsidiaries to
minority shareholders 2,352,514.18
Cash paid to other financing activities
Subtotal of Cash outflow 228,300,753.64 157,577,962.02 293,362,263.82 274,400,368.22
Net cash flow arising from financing activities (228,300,753.64) 2,422,037.98 (94,780,481.42) 2,861,331.78
IV. Effects on cash and cash equivalents from the
change of foreign exchange rates (151,457.62) (6,911.25) (1,913,245.04) (49,428.08)
V. Net increase in cash and cash equivalents (183,598,322.99) 903,091.90 (120,643,447.50) (3,889,412.85)
Add: beginning balance of cash and cash equivalents 540,739,906.30 494,441.23 399,276,546.68 4,939,594.77
VI .Ending balance of cash and cash equivalents 357,141,583.31 1,397,533.13 278,633,099.18 1,050,181.92
Prepared by Tsann Kuen (China) Enterprise Co., Ltd.
Legal Representative: Jian Derong CFO: Chen Zongyi Accounting Manager: Chen Zongyi14
4.4 Auditor’s report
Auditor’s opinion: un-audited
Board of Directors of
TSANN KUEN (CHINA) ENTERPRISE CO., LTD
Chairman of the Board: Jian Derong
17 Apr. 2010
