Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
TSANN KUEN (CHINA) ENTERPRISE CO., LTD
REPORT FOR THE FIRST QUARTER OF 2011
§1 Important Notes
1.1 The Board of Directors, the Supervisory Committee as well as directors, supervisors and senior
executives of TSANN KUEN (CHINA) ENTERPRISE CO., LTD. (hereinafter referred to as
“the Company”) guarantee that this report does not contain any false information, misleading
statement or material omission and will take individual and/or joint liabilities for the factuality,
accuracy and completeness of this report.
1.2 No directors, supervisors or senior executives have demonstrated uncertainty or disagreement
about the factuality, accuracy and completeness of the quarterly report.
1.3 All directors attended the board session for reviewing the quarterly report.
1.4 Financial statements for the first quarter of 2011 have not been audited by an accounting firm.
1.5 Mr. Jian Derong, Chairman of the Board, and Mr. Chen Zongyi, Accounting Manager, jointly
guarantee that the financial statements enclosed in the quarterly report is factual 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
Stock abbr. Min Tsann Kuen B
Stock code 200512
Company Secretary Securities Representative
Name Luo Qingxing Sun Meimei
TSANN KUEN Industrial Park, Longchi TSANN KUEN Industrial Park, Longchi
Contact address Development Zone, Zhangzhou, Fujian Development Zone, Zhangzhou, Fujian
Province, PRC Province, PRC
Telephone 0596-6268103 0596-6268161
Fax 0596-6268104 0596-6268104
E-mail allenlo@tkl.tsannkuen.com mm_sun@tkl.tsannkuen.com
1
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
2.1 Main accounting data and financial indices
Unit: RMB Yuan
Items 31 Mar. 2011 31 Dec. 2010 Increase/decrease (%)
Total assets (Yuan) 1,925,013,722.37 1,985,108,875.38 (3.03)
Owners’ equity attributable to shareholders of the
3.45
Company (Yuan) 477,348,952.34 461,411,506.21
Share capital (share) 1,112,350,077.00 1,112,350,077.00 0.00
Net assets per share attributable to shareholders of
4.88
the Company (Yuan/share) 0.43 0.41
Items Jan.-Mar. 2011 Jan.-Mar. 2010 Increase/decrease (%)
Gross revenue (Yuan) 664,479,506.22 765,386,616.25 (13.18)
Net profit attributable to shareholders of the
(15.12)
Company (Yuan) 15,656,510.21 18,445,684.38
Net cash flows from operating activities (Yuan) 12,626,802.27 47,910,849.17 (73.65)
Net cash flows per share from operating
(75.00)
activities (Yuan/share) 0.01 0.04
Basic EPS (Yuan/share) 0.0141 0.0166 (15.06)
Diluted EPS (Yuan/share) 0.0141 0.0166 (15.06)
Weighted average ROE (%) 3.34% 4.54% (1.20)
Weighted average ROE after deducting
(2.97)
non-recurring gains and losses (%) 0.64% 3.61%
2.1.1 Items of non-recurring gains and losses
Unit: RMB Yuan
Items 1 Jan. – 31 Mar. 2011
Gains on disposal of non-current assets 1,135,277.20
Government grant recognized in current year, except for those acquired in the
ordinary course of business or granted continuously in certain standard quota 687,515.00
according to relevant national laws and regulations
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,
14,687,922.25
tradable financial liabilities and available-for-sale financial assets other than
effective hedging business related to normal operation business of the Company
Other non-operating income and expense other than abovementioned 323,880.02
Income tax of non-recurring gains and losses 0.00
Net profit attributable to minority shareholders after deducting non-recurring gains
(4,196,295.52)
and losses
Total 12,638,298.95
Explanation on important items of non-recurring gains and losses: N/A
2
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
2.1.2 Net profit difference under CAS and IFRS
The financial statements for the first quarter of 2011 were prepared in accordance with the Chinese
Accounting Standards, not the International Financial Reporting Standards. According to the
statutory financial statements prepared under CAS, net profit attributable to shareholders of the
Company for the period from 1 Jan. 2011 to 31 Mar. 2011 was RMB 15,656,510.21, and net assets
attributable to shareholders of the Company as at 31 Mar. 2011 was RMB 477,348,952.34. The two
said items were adjusted as follows according to IFRS:
Unit: RMB Yuan
Net profit attributable to shareholders Owners’ equity attributable to shareholders of
内容 of the Company the Company
Jan.-Mar. 2011 Jan.-Mar. 2010 Closing amount Opening amount
Under IFRS 15,724,431.76 18,513,605.93 475,998,068.23 459,992,700.55
Under CAS 15,656,510.21 18,445,684.38 477,348,952.34 461,411,506.21
Adjusted items under IFRS:
Offset the depreciation this
year of the added value of
fixed assets of which value 67,921.55 67,921.55 (1,350,884.11) (1,418,805.66)
is estimated to increase in
1993
Total difference under CAS
67,921.55 67,921.55 (1,350,884.11) (1,418,805.66)
and IFRS
Explanation on the
The depreciation this year of the added value of fixed assets of which value is estimated
difference under CAS and
IFRS to increase in 1993 is offset.
2.2 Total number of shareholders and shares held by the top ten shareholders not subject to
trading moratorium at the end of the reporting period
Unit: Share
Total number of shareholders at the end
32,402
of the reporting period
Shares held by the top ten shareholders not subject to trading moratorium
Seria
Shares not subject to trading
Type of share
l No. Name of shareholder moratorium held at the period-end
1 FORDCHEE DEVELOPMENT LIMITED 323,643,179 B share
2 EUPA INDUSTRY CORPORATION LIMITED 153,802,306 B share
3 FILLMAN INVESTMENTS LIMITED 27,729,575 B share
4 TIMMERTON CO INC 14,505,644 B share
5 CHEN YONGQUAN 10,004,383 B share
6 LI YIJUN 7,692,959 B share
7 SHANGHAI HONG KONG INTERNATIONAL 6,095,002 B share
SECURITIES LIMITED
8 CHEN LIJUAN 6,076,746 B share
9 CHEN YONGQING 5,889,589 B share
10 CSC SECURITIES (HK) LTD 4,734,079 B share
The top three shareholders are the Company’s corporate controlling
shareholders. It is unknown to the Company whether there exists
Explanation on associated relationship among the associated relationship among the shareholders above or they are
above-mentioned shareholders or acting-in-concert acting-in-concert entities as stipulated in the Administrative
Measures on Information Disclosure of Changes in Shareholding of
Listed Companies.
3
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
§3 Significant Events
Sales of assets:
The Company disclosed the Announcement on Selling Some Operation Assets of Accessory
Factory by Controlling Subsidiary Zhangzhou Tsann Kuen, the Announcement on Progress of Sales
of Some Operation Assets of Accessory Factory By Controlling Subsidiary and New Asset Sale,
and the Announcement 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. 2008, 21 Jan. 2009, 28 Apr. 2009 and 28 Apr.
2010. As at 31 Mar. 2011, the relevant progress is as follows:
Unit: RMB Ten thousand
Net profit
Ownership
contributed by Gains and Relevant Relat
Related- of the
the sold asset to losses Explanation credits and ed-pa
Transaction Selling party asset was
Asset sold Date of selling the Company arising on pricing liabilities were rty
party price transacti all
from the from such principle all transferred relatio
on or not transferred
year-begin to sale or not nship
or not
the selling date
Zhangzhou Motor
2011.01.31 12.00 5.47 5.47 Yes No
Baokun equipment
Zhangzhou Bakelite
2011.01.31 0.35 0.31 0.31 Yes Yes
Shunkun equipment
Zhangzhou Die casting
2011.02.28 36.20 34.33 34.33 Yes No
Haikun equipment
The
Zhangzhou Die casting transaction
2011.02.28 17.50 15.71 15.71 Yes No
Bo’er equipment prices were
Zhangzhou Die casting decided
2011.02.28 6.30 6.18 6.18 based on the Yes No
Yufeng equipment
principle of Non-r
Zhangzhou Die casting being above elated
2011.02.28 3.60 3.53 3.53 No Yes No
Hongyuan equipment the net book partie
Zhangzhou Die casting value, as well s
2011.02.28 6.00 5.88 5.88 as based on Yes No
Ruicheng equipment
the
Zhangzhou Hardware assessment
2011.03.30 5.20 4.46 4.46 Yes No
Shengyuan equipment and market
Zhangzhou Hardware prices.
2011.03.30 2.67 2.42 2.42 Yes No
Xiangkun equipment
Zhangzhou Bakelite
2011.03.30 0.80 0.49 0.49 Yes No
Hewang equipment
Zhangzhou Die casting
2011.03.30 1.10 1.03 1.03 Yes No
Haikun equipment
Total 91.72 79.83 79.83
4
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
3.1 Significant changes in main accounting statement items and financial indicators as well as
reasons for these changes
√Applicable □Non-applicable
Unit: RMB Yuan
Increase/
Seria
Items Closing amount Opening amount decrease Main reasons for the change
l No.
(%)
Unsettled forward foreign exchange
Transactional financial
1 14,592,672.02 2,301,579.95 534.03% contracts increased in the reporting
assets
period.
Prepayments for materials checked
2 Prepayments 6,733,114.91 8,658,966.52 -22.24% and put in storage as well as
amortization of insurance premiums
Some term deposits were due and
3 Interest receivable 67,777.51 128,237.14 -47.15% relevant interest incomes were
accounted in the reporting period.
Receipt of national export tax
4 Other receivables 29,378,496.39 60,422,920.42 -51.38%
refunds for 2010
The Company’s control over its
5 Inventories 204,197,713.99 276,589,483.95 -26.17%
inventories
Transfer of equity interests of
6 Goodwill 996,979.09 2,496,979.09 -60.07% Suzhou Tai Lake International
Travel Service Co., Ltd.
7 Notes payable 55,542,986.82 77,161,578.38 -28.02% Mature notes were settled.
Loans from the controlling
8 Other payables 213,354,072.31 90,697,163.04 135.24%
shareholder in the reporting period
Unsettled forward foreign exchange
Deferred income tax
9 3,648,168.01 345,236.99 956.71% amounts at the period-end were
liabilities
estimated to be profitable.
Increase/
Seria
Items Jan.-Mar. 2011 Jan.-Mar. 2010 decrease Main reasons for the change
l No.
(%)
A new tax—city maintenance
Business taxes and
1 4,257,112.51 1,042,276.29 308.44% tax—and increase of the surtax
surcharges
rate
Increase of the foreign exchange
2 Financial expense 995,255.00 (1,366,457.41) 172.83%
loss in the reporting period
Bad-debt provisions were made
3 Asset impairment loss 338,284.11 1,354,248.47 -75.02% for some receivables in the same
period of last year.
Gain on fair value Increase of unsettled forward
4 12,291,092.07 (844,006.90) 1556.28%
changes (“-”for loss) foreign exchange contracts
Investment gain (“-”for Increase of settled forward
5 2,417,462.38 1,184,538.21 104.08%
loss) foreign exchange contracts
6 Non-business income 3,385,133.22 5,120,196.58 -33.89% Less gain on asset disposal
7 Non-business expense 533,764.37 183,276.52 191.23% Loss on asset scrapping
The unsettled forward contract
amount increased over the same
8 Income tax expense 4,756,805.06 2,453,123.41 93.91% period of last year and the
estimated income tax increased
accordingly.
Decrease of the turnover and
Net cash flows from
9 12,626,802.27 47,910,849.17 -73.65% increase of payments for
operating activities
materials purchased
Less gain on asset disposal as
Net cash flows from
10 (7,648,370.63) (3,056,960.90) 150.20% compared to the same period of
investing activities
last year
Net cash flows from Loans from the controlling
11 111,138,900.13 (228,300,753.64) 148.68%
financing activities shareholder
5
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
3.2 Progress of significant events as well as their influence and solutions
3.2.1 Non-standard audit opinion
□Applicable √Inapplicable
3.2.2 The Company provides funds for the controlling shareholder or its related parties or
provides external guarantees in violation of the prescribed procedure
□Applicable √Inapplicable
3.2.3 Significant contracts signed and executed concerning routine operation
√Applicable □Inapplicable
The Company’s subsidiary Zhangzhou Tsann Kuen signed Cooperation Framework Agreement,
Agreement on Transaction of Working Assets, and Supply Agreement on Raw Materials etc. with
Shanghai Sigma Metals Co., Ltd. on 31 Dec. 2006. The main content of the agreements were as
follows: besides selling working assets, Zhangzhou Tsann Kuen had to transfer business
opportunities to Shanghai Sigma, and the total amount of the transactions reached RMB
100,000,000; Shanghai Sigma would act as the Company’s main supplier of raw materials for
aluminum products, fixing settlement price in accordance with reduced amount and ratio per ton
engaged by both parties. In light of the Agreement on Transaction of Working Assets, Shanghai
Sigma paid down payment of RMB 38,000,000, and would monthly deduct and offset the balance
of RMB 62,000,000 from processing fee of molten aluminum, which was commissioned to
manufacturer by Zhangzhou Tsann Kuen and produced by Shanghai Sigma, in the future.
Zhangzhou Tsann Kuen committed to procure molten aluminum or aluminum ingots from Shanghai
Sigma with procurement volume no less than 70% of its total demand for molten aluminum or
aluminum ingots during the next three years upon the effectiveness of Supply Agreement on Raw
Materials. When it comes to the expiry of the aforesaid three years, and the balance still hasn’t been
offset completely from the processing fee for the sake of insufficiency of orders from Zhangzhou
Tsann Kuen -- Zhangzhou Tsann Kuen will then agree on the extension of Supply Agreement on
Raw Materials and offset the rest balance by business cooperation. Shanghai Sigma won’t have to
pay the rest balance if the agreement is terminated because of Zhangzhou Tsann Kuen’s fault; or
Shanghai Sigma will have to implement one-time payment if the agreement is terminated because
of its own fault.
The aforesaid agreements had been executed for three years as at the balance sheet date. The rest
balance of RMB 39,746,220.40 hadn’t been carried over yet and would be continually deducted and
offset in the future. Currently, the Company has hired lawyers to look into the said agreement and
discuss with Shanghai Sigma Metals.
3.2.4 Other
□Applicable √Inapplicable
3.3 Commitments made by the Company, its shareholders and actual controller
□Applicable √Inapplicable
6
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
3.4 Warnings of possible loss or large-margin year-on-year change of the accumulative net
profit made during the period from the beginning of the year to the end of the next reporting
period according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities investments
□Applicable √Inapplicable
3.5.2 Researches, interviews and visits received in the reporting period
In the reporting period, when receiving researches and interviews, the Company and relevant
information disclosure obligors abided by the Guidelines for Fair Information Disclosure of Listed
Companies, not conducting differential treatments or selectively and privately leaking undisclosed
information to certain parties. And the researches and interviews received were detailed as follows:
Way of Main discussion and information provided
Time Place Visitor
reception by the Company
Investment Director He
Field Minji and Analyst Operational status of the Company with no
2011.01.05
research Ouyang Puwen from material provided by the Company
Value Partners
Operational status of the Company with no
2011.01.07 By phone Mr. Wang
material provided by the Company
Company
Office Operational status of the Company with no
2011.01.21 By phone Mr. Wang
material provided by the Company
Operational status of the Company with no
2011.03.07 By phone Mr. Zhou
material provided by the Company
Operational status of the Company with no
2011.03.08 By phone Mr. Zhong
material provided by the Company
3.5.3 Change in the consolidation scope
1. Subsidiaries de-consolidated for the reporting period
√Applicable □Inapplicable
Unit: RMB Yuan
Net profit contributed by
Net assets of the
De-consolidated Date of the subsidiary from the Reason for
subsidiary on the
subsidiary de-consolidation year-begin to the disposal de-consolidation
disposal date
date
Suzhou Tai Lake
International Travel 22 Feb. 2011 (1,297,175.94) (119,956.55) Equity transfer
Service Co., Ltd.
2. Subsidiaries newly consolidated for the reporting period
□Applicable √Inapplicable
7
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
3.6 Derivative investments
√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—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 was
approved at the board session held on 6 Mar. 2008.
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.
Analysis on risks and control (2) Separation of post: separation of post of trader, dealer and authorization.
measures of derivative products
held in the reporting period (3) Normalization of procedure: trader should offer sufficient market information and risks to people
(including but not limited to who was authorized, clarify possible risks, consider feasibility of transaction when sign the contract, and
market risk, liquidity risk, credit complete derivative financial commodities trade with authorization. Documents referring to contract
risk, operation risk, law risk, trade need examination of legal affairs ministry, and the dealer will requested to be authorized when
etc.) 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 (1) Gain on settled investments of derivative products was RMB 2,396,830.23 in the reporting period,
values in the reporting period of and gain on unsettled such investments was estimated to be RMB 12,291,092.07;
the invested derivatives. And the
(2) The former contracted bank provided monthly sheets of estimated exchange rates for the undue
analysis on the fair value of the
contracted forward exchanges on the last trading day of the month;
derivatives should include the
specific use methods and the (3) The profit and loss from fair value changes of the derivative was confirmed according to the
relevant assumptions and difference between the contracted amount undue by the month*the estimated exchange rate and the
parameters. currency amount when bought in.
Whether significant changes
occurred to the Company’s
accounting policy and specific
There were no significant changes between the Company’s accounting policy and specific accounting
accounting principles of
principles of derivatives in the reporting period and those in the last report period.
derivatives in the reporting
period compared to the previous
report period
Specific opinion from
Derivative investment, which was operated by Zhangzhou Tsann Kuen, controlling subsidiary of the
independent directors, sponsors
Company, was performance of signed contract. Then they will execute the examination and review
or financial consultants on the
procedure of the Board Meeting or Shareholder’s Meeting in accordance with regulations and execute
Company’s derivatives
obligation of information disclosure in time.
investment and risk control
8
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
3.6.1 Derivative investments held at the end of the reporting period
√Applicable □Inapplicable
Unit: RMB Yuan
Proportion of the
Gain or loss in
Beginning contract Closing contract closing contract amount
Type of contract the reporting
amount amount in the closing net assets
period
of the Company (%)
Forward foreign
44,380,034.94 44,536,705.15 1,034,992.07 9.33%
exchange trade
Forward FX sales
265,523,000.00 809,109,100.00 11,256,100.00 169.50%
and purchases
Total 309,903,034.94 853,645,805.15 12,292,092.07 178.83%
9
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
§4 Attachments
4.1 Balance sheet
Balance Sheet (Un-audited)
As at 31 Mar. 2011
Prepared by Tsann Kuen (China) Enterprise Co., Ltd. Unit: RMB Yuan
Closing amount Opening amount
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 744,024,102.29 40,805,848.24 640,945,107.83 904,966.64
Transactional financial assets 14,592,672.02 2,301,579.95
Notes receivable 4,037,834.00 4,304,903.10
Accounts receivable 418,132,874.30 458,742,818.28
Accounts paid in advance 6,733,114.91 365,399.00 8,658,966.52 93,254.00
Interest receivable 67,777.51 128,237.14
Dividend receivable
Other accounts receivable 29,378,496.39 2,419,595.33 60,422,920.42 126,090.00
Inventories 204,197,713.99 276,589,483.95
Non-current assets due within 1 year
Other current assets
Total current assets 1,421,164,585.41 43,590,842.57 1,452,094,017.19 1,124,310.64
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable 65,574,291.18 71,186,747.74
Long-term equity investment 40,000.00 990,854,030.83 40,000.00 990,854,030.83
Investing property 28,212,362.52 23,894,400.88 29,344,230.78 24,409,738.09
Fixed assets 348,627,573.30 26,092,011.38 367,750,001.33 27,071,431.70
Construction in progress 2,675,327.93 2,842,516.56
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 24,521,265.93 19,061,564.61 25,021,404.35 19,315,381.38
R&D expense
Goodwill 996,979.09 2,496,979.09
Long-term deferred expenses 6,275,561.46 137,265.54 5,953,419.25 145,340.04
Deferred income tax assets 26,925,775.55 28,379,559.09
Other non-current assets
Total of non-current assets 503,849,136.96 1,060,039,273.24 533,014,858.19 1,061,795,922.04
Total assets 1,925,013,722.37 1,103,630,115.81 1,985,108,875.38 1,062,920,232.68
10
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
Balance Sheet –Continued (Un-audited)
As at 31 Mar. 2011
Prepared by Tsann Kuen (China) Enterprise Co., Ltd. Unit: RMB Yuan
Closing amount Opening amount
Items
Consolidation The Company Consolidation The Company
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 55,542,986.82 77,161,578.38
Accounts payable 677,422,737.08 219,830.30 836,505,277.66 274,567.76
Accounts received in advance 15,468,830.21 30,000.00 15,875,235.26 31,260.00
Employee’s compensation payable 32,589,454.71 126,300.16 37,912,505.82 208,568.85
Tax payable 46,165,875.98 68,888,581.96 48,362,325.48 68,937,341.03
Interest payable
Dividend payable
Other accounts payable 213,354,072.31 569,917,241.53 90,697,163.04 594,840,595.36
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 1,040,543,957.11 639,181,953.95 1,106,514,085.64 664,292,333.00
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Deferred income
Estimated liabilities
Deferred income tax liabilities 3,648,168.01 345,236.99
Other non-current liabilities 42,749,663.05 39,746,220.40
Total non-current liabilities 46,397,831.06 0.00 40,091,457.39 0.00
Total liabilities 1,086,941,788.17 639,181,953.95 1,146,605,543.03 664,292,333.00
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 reserves 125,035,204.92 123,485,181.40 125,035,204.92 123,485,181.40
Less: Treasury stock
Surplus reserves
Provisions for general risks
Retained profits (760,033,301.25) (771,387,096.54) (775,973,855.22) (837,207,358.72)
Foreign exchange difference (3,028.33) 79.51
Total equity attributable to owners of the Company 477,348,952.34 464,448,161.86 461,411,506.21 398,627,899.68
Minority interests 360,722,981.86 377,091,826.14
Total owners’ equity 838,071,934.20 464,448,161.86 838,503,332.35 398,627,899.68
Total liabilities and owners’ equity 1,925,013,722.37 1,103,630,115.81 1,985,108,875.38 1,062,920,232.68
Legal Representative: Jian Derong CFO: Chen Zongyi Accounting Manager: Chen Zongyi
11
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
4.2 Income Statement
Income Statement (Un-audited)
1 Jan.-31 Mar. 2011
Prepared by Tsann Kuen (China) Enterprise Co., Ltd. Unit: RMB Yuan
Jan.-Mar. 2011 Jan.-Mar. 2010
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 664,479,506.22 588,357.60 765,386,616.25 1,519,018.01
II. Total operating cost 655,370,026.63 2,553,871.43 743,281,526.43 2,695,449.83
Including: Cost of sales 572,850,476.33 534,277.68 665,449,907.42 1,473,143.30
Taxes and associate charges 4,257,112.51 32,671.79 1,042,276.29 76,031.62
Selling and distribution expenses 23,157,067.06 25,910,761.19
Administrative expenses 53,771,831.62 1,987,550.68 50,890,790.47 1,574,840.54
Financial expenses 995,255.00 (628.72) (1,366,457.41) 22,156.93
Asset impairment loss 338,284.11 1,354,248.47 (450,722.56)
Add: Gain/(loss) from change in fair value (“-” means loss) 12,291,092.07 (844,006.90)
Gain/(loss) from investment (“-” means loss) 2,417,462.38 67,732,295.69 1,184,538.21 7,849,213.97
Including: share of profits in associates and joint ventures
III. Business profit 23,818,034.04 65,766,781.86 22,445,621.13 6,672,782.15
Add: non-operating income 3,385,133.22 143,480.32 5,120,196.58 99,112.19
Less: non-operating expense 533,764.37 90,000.00 183,276.52
Including: loss from non-current asset disposal 334,675.58 8,781.08
IV. Total profit (“-” means loss) 26,669,402.89 65,820,262.18 27,382,541.19 6,771,894.34
Less: Income tax expense 4,756,805.06 2,453,123.41
V. Net profit (“-” means loss) 21,912,597.83 65,820,262.18 24,929,417.78 6,771,894.34
Attributable to owners of the Company 15,656,510.21 65,820,262.18 18,445,684.38 6,771,894.34
Minority shareholders’ income 6,256,087.62 6,483,733.40
VI. Earnings per share
(I) basic earnings per share 0.0141 0.0166
(II) diluted earnings per share 0.0141 0.0166
Ⅶ. Other comprehensive incomes (3,107.84) - 443,930.80 107,321.76
Ⅷ. Total comprehensive incomes 21,909,489.99 65,820,262.18 25,373,348.58 6,879,216.10
Attributable to owners of the Company 15,654,179.33 65,820,262.18 18,889,615.18 6,879,216.10
Attributable to minority shareholders 6,255,310.66 6,483,733.40
Legal Representative: Jian Derong CFO: Chen Zongyi Accounting Manager: Chen Zongyi
Where there were business combinations under the same control in the reporting period, the
combined parties achieved net profits of RMB 0.00 before the combinations.
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Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
4.3 Cash Flow Statement
Cash Flow Statement (Un-audited)
1 Jan.-31 Mar. 2011
Prepared by Tsann Kuen (China) Enterprise Co., Ltd. Unit: RMB Yuan
Jan.-Mar. 2011 Jan.-Mar. 2010
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 724,144,123.35 0.00 757,929,692.49
Tax refunds received 84,981,611.39 15,060.94 49,601,510.57
Other cash received relating to operating activities 20,147,678.69 9,622,030.22 20,767,380.01 10,860,348.65
Subtotal of cash inflows from operating activities 829,273,413.43 9,637,091.16 828,298,583.07 10,860,348.65
Cash paid for goods and services 677,338,778.45 0.00 600,565,170.61
Cash paid to and for employees 71,250,333.12 9,568,261.26 88,976,481.56 8,814,086.55
Various taxes paid 10,035,998.83 1,358,348.66 6,505,020.50 1,017,765.88
Other cash payment relating to operating activities 58,021,500.76 1,465,249.15 84,341,061.23 9,149,387.14
Subtotal of cash outflows from operating activities 816,646,611.16 12,391,859.07 780,387,733.90 18,981,239.57
Net cash flows from operating activities 12,626,802.27 (2,754,767.91) 47,910,849.17 (8,120,890.92)
II. Cash flows from investing activities:
Cash received from disposal of investments 500,000.00 0.00
Cash received from return on investments 7,500.00 67,732,295.69 7,500.00 7,849,213.97
Net cash received from disposal of fixed assets, intangible assets and
2,095,326.14 0.00 5,820,974.43
other long-term assets
Net cash received from disposal of subsidiaries or other business units 0.00 0.00
Other cash received relating to investing activities 0.00 0.00
Subtotal of cash inflows from investing activities 2,602,826.14 67,732,295.69 5,828,474.43 7,849,213.97
Cash paid to acquire fixed assets, intangible assets and other long-term
9,959,076.09 76,400.00 8,663,435.33 1,240,357.88
assets
Cash paid for investment 292,120.68 0.00 222,000.00
Net cash paid to acquire subsidiaries and other business units 0.00 0.00
Other cash payments relating to investing activities 0.00 0.00
Subtotal of cash outflows from investing activities 10,251,196.77 76,400.00 8,885,435.33 1,240,357.88
Net cash flows from investing activities (7,648,370.63) 67,655,895.69 (3,056,960.90) 6,608,856.09
III. Cash flows from financing activities:
Cash received from capital contributions 0.00 0.00
Including: Cash received from minority shareholder investments by
0.00 0.00
subsidiaries
Cash received from borrowings 0.00
Cash received from issuance of bonds 0.00 0.00
Other cash received relating to financing activities 131,431,000.00 5,000,000.00 160,000,000.00
Subtotal of cash inflows from financing activities 131,431,000.00 5,000,000.00 0.00 160,000,000.00
Repayment of borrowings 0.00 0.00 68,370,277.44
Cash paid for interest expenses and distribution of dividends or profit 20,292,099.87 0.00 2,352,514.18
Including: dividends or profit paid by subsidiaries to minority
20,292,099.87 0.00
shareholders
Other cash payments relating to financing activities 0.00 30,000,000.00 157,577,962.02 157,577,962.02
Sub-total of cash outflows from financing activities 20,292,099.87 30,000,000.00 228,300,753.64 157,577,962.02
Net cash flows from financing activities 111,138,900.13 (25,000,000.00) (228,300,753.64) 2,422,037.98
IV. Effect of foreign exchange rate changes on cash and cash
(396,542.40) (246.18) (151,457.62) (6,911.25)
equivalents
V. Net increase in cash and cash equivalents 115,720,789.37 39,900,881.60 (183,598,322.99) 903,091.90
Add: Cash and cash equivalents at the period-begin 627,477,733.10 904,966.64 540,739,906.30 494,441.23
VI. Cash and cash equivalents at the period-end 743,198,522.47 40,805,848.24 357,141,583.31 1,397,533.13
Legal Representative: Jian Derong CFO: Chen Zongyi Accounting Manager: Chen Zongyi
13
Report for the First Quarter of 2011 of Tsann Kuen (China) Enterprise Co., Ltd.
4.4 Auditor’s report
Auditor’s opinion: un-audited
Chairman of the Board: Jian Derong
Board of Directors of Tsann Kuen (China) Enterprise Co., Ltd.
23 April 2011
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