TSANN KUEN (CHINA) ENTERPRISE CO., LTD
REPORT FOR THE FIRST QUARTER OF 2012
§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 Seven directors were supposed to attend the board session for reviewing this report and six of
them actually did. Independent Director Tu Liandong was on a business trip overseas and thus
entrusted Independent Director Ge Xiaoping to attend the session and vote on behalf of him.
1.4 Financial statements for the first quarter of 2012 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 Sun Meimei
TSANN KUEN Industrial Park, Longchi
Contact address Development Zone, Zhangzhou, Fujian
Province, PRC
Telephone 0596-6268103
Fax 0596-6268104
E-mail mm_sun@tkl.tsannkuen.com
1
2.1 Main accounting data and financial indices
Unit: RMB Yuan
Increase/decrease
Items 31 Mar. 2012 31 Dec. 2011
(%)
Total assets (Yuan) 1,922,619,486.79 1,916,130,287.89 0.34
Owners’ equity attributable to shareholders of the
460,085,158.39 470,858,567.38 (2.29)
Company (Yuan)
Share capital (share) 1,112,350,077.00 1,112,350,077.00 0.00
Net assets per share attributable to shareholders of
0.41 0.42 (2.38)
the Company (Yuan/share)
Increase/decrease
Items Jan.-Mar. 2012 Jan.-Mar. 2011
(%)
Gross revenue (Yuan) 468,654,073.31 664,479,506.22 (29.47)
Net profit attributable to shareholders of the
(10,773,006.24) 15,656,510.21 (168.81)
Company (Yuan)
Net cash flows from operating activities (Yuan) (58,560,008.93) 12,626,802.27 (563.78)
Net cash flows per share from operating activities
(0.05265) 0.0100 (626.50)
(Yuan/share)
Basic EPS (Yuan/share) (0.0100) 0.0141 (170.92)
Diluted EPS (Yuan/share) (0.0100) 0.0141 (170.92)
Weighted average ROE (%) -2.31% 3.34% (5.65)
Weighted average ROE after deducting non-recurring
-3.26% 0.64% (3.90)
gains and losses (%)
2.1.1 Items of non-recurring gains and losses
Unit: RMB Yuan
Amount from 1 Jan. – 31 Mar.
Items
2012
Gains on disposal of non-current assets 802,567.95
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 78,400.00
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,
4,697,304.21
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 above mentioned 98,423.28
Income tax of non-recurring gains and losses 0.00
Net profit attributable to minority shareholders after deducting non-recurring gains and
(1,385,036.31)
losses
Total 4,291,659.13
Explanation on important items of non-recurring gains and losses: N/A
2
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 of the reporting
period 32,841
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 10,012,483 B share
6 CHEN LIJUAN 6,076,746 B share
7 CHEN YONGQING 5,889,589 B share
SHANGHAI HONG KONG INTERNATIONAL B share
8 4,810,002
SECURITIES LIMITED
9 CSC SECURITIES (HK) LTD 4,480,379 B share
10 CAI SHUHUI 4,294,433 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 Significant Events
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
Serial No. Items Closing amount Opening amount +/-% Main reasons for the change
1 Notes receivable 5,553,350.00 2,979,552.00 86.38% Increase of banker’s acceptance bills
Accounts
2 252,224,438.72 418,549,674.30 -39.74% Decrease of sales
receivable
3 Interest receivable 5,020,153.48 1,646,355.63 204.93% Increase of term deposits
Construction in Some construction was completed and moved
4 4,891,501.78 6,821,449.43 -28.29%
progress into fixed assets.
Short-term
5 107,003,100.00 0.00 100.00% Increase of short-term borrowings from banks
borrowings
Labor compensation pre-withdrawn last year
6 Payroll payable 31,994,352.32 45,828,794.36 -30.19%
was paid in this period.
Taxes and fares Export tax refunds last year were received in
7 7,342,867.15 (11,309,225.00) 164.93%
payable the reporting period.
Increase of intra-Group borrowings from
8 Other payables 199,614,645.26 94,564,576.55 111.09%
related parties
3
Serial
Items Jan.-Mar. 2012 Jan.-Mar. 2011 +/-% Main reasons for the change
No.
Due to a weak export market, orders
1 Operating revenues 468,654,073.31 664,479,506.22 -29.47%
decreased.
Operating revenues decreased and operating
2 Operating costs 419,174,687.17 572,850,476.33 -26.83%
costs decreased accordingly.
Business taxes and
3 913,732.20 4,257,112.51 -78.54% Tax exempted and withheld decreased.
surtaxes
4 Financial costs (5,467,470.70) 995,255.00 -649.35% Interest income increased.
Increase of inventory falling price provisions
5 Asset impairment loss 2,948,581.03 338,284.11 771.63%
and bad-debt loss
Gains on fair value Assessed gains on forward foreign exchange
6 1,045,679.08 12,291,092.07 -91.49%
changes (“-”for losses) contracts decreased.
Investment income Gains recognized on settled forward foreign
7 3,651,625.13 2,417,462.38 51.05%
(“-”for losses) exchange contracts increased.
Fixed asset disposal income and subsidy
8 Non-operating income 981,880.74 3,385,133.22 -70.99%
income both decreased.
Non-operating Fixed asset disposal loss and donations both
9 2,489.51 533,764.37 -99.53%
expense decreased.
The Company recorded deficit for this period
10 Income tax expense 0.00 4,756,805.06 -100.00% and thus did not have to pay the relevant
corporate income tax.
Net profit attributable
11 to owners of the (10,773,006.24) 15,656,510.21 -168.81% Sales decreased.
Company
Net cash flows from
12 (58,560,008.93) 12,626,802.27 -563.78% Sales decreased.
operating activities
Net cash flows from
13 233,566,600.00 111,138,900.13 110.16% Increase of bank borrowings
financing activities
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
Sales of assets:
For details please refer to Public Notice on Sales of Partial Operation Assets of Accessory Factory of
Share Controlling Subsidiary Zhangzhou Tsann Kuen, Public Notice on Explanation on Progress of
Sales of Partial Operation Assets of Accessory Factory of Share Controlling Subsidiary Zhangzhou
Tsann Kuen and New Assets for Sale, and Public Notice on Explanation on Progress of Sales of
Partial Operation Assets of Accessory Factory of Share Controlling Subsidiary Zhangzhou Tsann
4
Kuen and New Assets for Sale for the Second Time, which were published 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.
In the reporting period, considering the actual business needs of the supporting manufacturers, the
Company sold more equipment in a small quantity, with details as follows:
Unit: RMB Ten Thousand
Net profit
contributed to whether or not
Whether or not
the Company Gains and Whether a the relevant
Explanation the ownership Relationship
by the sold losses due related creditor’s rights
Transaction party Asset sold Date of sale Selling price on pricing of the involved with the
asset from to selling transaction and liabilities
principle asset had been Company
year-begin to the asset or not had been
transferred
the date of transferred
sale
PT. STAR Injection
COMGISTIC molding 2012.02.29 641,298.84 18,630.61 18,630.61
INDONESIA equipment
Related-party Related-party
PT. STAR
Other
COMGISTIC 2012.3.31 51,432.27 8,454.78 8,454.78
equipment
INDONESIA
Injection
Huizhou Sankyo
molding 2012.01.31 33,000.00 7,094.38 7,094.38
Precision Co., Ltd.
equipment
Fujian Sanxing
Machinery &
Die casting
Electronic 2012.01.31 812,771.64 21,307.97 21,307.97
equipment
Equipment Co.,
Ltd.
Xiamen
Shangheyang Bakelite
2012.01.31 30,000.00 13,492.69 13,492.69
Plastic Industrial equipment
The
Co., Ltd.
transaction
Injection prices were
Chen Feiyu molding 2012.01.31 40,000.00 12,047.14 12,047.14 decided
equipment based on
Zhangzhou the
Die casting
Ruicheng Metal 2012.01.31 220,000.00 47,677.31 47,677.31 principle of
equipment
Product Co., Ltd. being Yes Yes
Longhai Longchi Injection above the
Baoxing Hardware molding 2012.01.31 18,400.00 17,945.30 17,945.30 book value,
Processing Factory equipment Non-related as well as Non-related
Injection party the party
Liliana S.R.L molding 2012.02.29 41,570.10 35,530.00 35,530.00 assessment
equipment and market
Xiamen Duobite prices.
Machinery & Injection
Electronic molding 2012.02.29 3,600.00 3,492.95 3,492.95
Technology Co., equipment
Ltd.
Xiamen
Jinshengrong Die casting
2012.02.29 17,000.00 9,728.71 9,728.71
Metal Product Co., equipment
Ltd.
Zhangzhou Haikun
Die casting
Metal Product Co., 2012.02.29 35,000.00 19,350.10 19,350.10
equipment
Ltd.
Zhangzhou Bokun
Other
Electric Appliance 2012.02.29 42,848.00 22,772.87 22,772.87
equipment
Co.,Ltd.
Zhangzhou Yixin
Die casting
Metal Product Co., 2012.02.29 6,100.00 5,982.69 5,982.69
equipment
Ltd.
5
Net profit
Whether or
contributed to Whethe whether or not
not the
the Company ra Explanatio the relevant Relations
Gains and losses ownership of
by the sold related n on creditor’s rights hip with
Transaction party Asset sold Date of sale Selling price due to selling the involved
asset from transact pricing and liabilities the
the asset asset had
year-begin to ion or principle had been Company
been
the date of not transferred
transferred
sale
Die
Zhangzhou Yufeng Metal
casting 2012.02.29 2,000.00 1,961.54 1,961.54
Product Co., Ltd.
equipment
Die
Xiamen Jingjing Metal Product
casting 2012.02.29 28,000.00 25,696.58 25,696.58
Co., Ltd.
equipment
Xiamen Lianfuxin Metal Other
2012.02.29 36,000.00 30,769.23 30,769.23
Materials Co., Ltd. equipment
Longhai Longchi Baoxing Hardware
2012.02.29 21,000.00 19,259.83 19,259.83
Hardware Processing Factory equipment
Longhai Longchi Baoxing Bakelite
2012.02.29 20,300.00 18,519.58 18,519.58
Hardware Processing Factory equipment
Longhai Longchi Baoxing Other
2012.02.29 14,800.00 12,649.57 12,649.57
Hardware Processing Factory equipment
Injection
Longhai Longchi Baoxing
molding 2012.02.29 24,000.00 23,538.46 23,538.46
Hardware Processing Factory
equipment
Die
Zhangzhou Haikun Metal
casting 2012.3.31 8,000.00 7,089.74 7,089.74
Product Co., Ltd.
equipment
Zhangzhou Kunyi Electric Other
2012.3.31 7,000.00 5,982.91 5,982.91
Appliance Co., Ltd. equipment
Zhangzhou Kunyi Electric Fitting
2012.3.31 59,200.00 36,304.21 36,304.21
Appliance Co., Ltd. equipment The
Fujian Haixiang Travel Other transaction
2012.3.31 60,000.00 46,462.84 46,462.84 prices
Transportation Service Co., Ltd equipment
were
Injection decided
Longhai Longchi Baoxing
molding 2012.3.31 8,300.00 5,912.86 5,912.86 based on
Hardware Processing Factory
equipment the
Die Non-rel principle
Xiamen Zhehui Industry Non-relat
casting 2012.3.31 31,000.00 26,803.56 26,803.56 ated of being Yes Yes
ed party
&Trade Co., Ltd. party above the
equipment
Injection book
Xiamen Suyuan Industry value, as
molding 2012.3.31 18,000.00 16,708.33 16,708.33
&Trade Co., Ltd. well as the
equipment
Die assessmen
Zhangzhou Longxinwang t and
casting 2012.3.31 8,500.00 7,706.20 7,706.20
Metal Product Co., Ltd. market
equipment
Longhai Jinxin Metal Industrial Motor prices.
2012.3.31 1,200.00 1,025.64 1,025.64
Co., Ltd. equipment
Die
Zhangzhou Boer Metal Product
casting 2012.3.31 20,000.00 19,615.38 19,615.38
Co., Ltd.
equipment
Die
Zhangzhou Ruicheng Metal
casting 2012.3.31 6,000.00 5,884.62 5,884.62
Product Co., Ltd.
equipment
Die
Zhangzhou Ruicheng Metal
casting 2012.3.31 15,000.00 12,985.08 12,985.08
Product Co., Ltd.
equipment
Xiamen Lianfuxin Metal Hardware
2012.3.31 33,600.00 29,692.76 29,692.76
Materials Co., Ltd. equipment
Xiamen Lianfuxin Metal Hardware
2012.3.31 30,200.00 29,619.23 29,619.23
Materials Co., Ltd. equipment
Longhai Longchi Baoxing Hardware
2012.3.31 18,400.00 18,046.15 18,046.15
Hardware Processing Factory equipment
Longhai Longchi Baoxing Hardware
2012.3.31 12,000.00 10,256.41 10,256.41
Hardware Processing Factory equipment
Longhai Longchi Baoxing Hardware
2012.3.31 15,400.00 15,103.85 15,103.85
Hardware Processing Factory equipment
Die
Changtai Huatai Precision
casting 2012.3.31 15,000.00 14,711.54 14,711.54
Casting Co., Ltd.
equipment
Total 2,505,920.84 685,813.62 685,813.62
6
3.2.4 Other
□Applicable √Inapplicable
3.3 Commitments made by the Company, its shareholders and actual controller
□Applicable √Inapplicable
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 by
Time Place Visitor
reception the Company
Operational status of the Company with no
9 Jan. 2012 By phone Mr. Cai material provided by the Company
Company Operational status of the Company with no
29 Feb. 2012 Office By phone Mr.Hu
material provided by the Company
Operational status of the Company with no
22 Mar. 2012 By phone Mr.Li
material provided by the Company
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.
7
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 towho 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 3,651,600 in the reporting period, and
values in the reporting period of gain on unsettled such investments was estimated to be RMB 1,045,700;
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
3.6.1 Derivative investments held at the end of the reporting period
√Applicable □Inapplicable
Unit: RMB Yuan
Proportion of the closing
Beginning contract Closing contract Gain or loss in the contract amount in the
Type of contract
amount amount reporting period closing net assets of the
Company (%)
Forward foreign
4,145,328.97 4,135,545.31 208,929.08 0.90%
exchange trade
Forward FX sales
631,280,000.00 862,368,500.00 836,750.00 187.44%
and purchases
Total 635,425,328.97 866,504,045.31 1,045,679.08 188.34%
8
3.7 Other events
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 four years as at the balance sheet date. The rest
balance of RMB 39,923,170.80 hadn’t been carried over yet and would be continually deducted and
offset in the future.
9
§4 Attachments
4.1 Balance sheet
Balance Sheet (Un-audited)
As at 31 Mar. 2012
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 872,906,953.79 11,417,186.22 704,791,892.62 13,757,429.84
Transactional financial assets 5,681,732.30 4,636,053.22
Notes receivable 5,553,350.00 2,979,552.00
Accounts receivable 252,224,438.72 418,549,674.30
Accounts paid in advance 7,859,068.48 85,805.53 6,922,030.17 89,677.02
Interest receivable 5,020,153.48 1,646,355.63 413.89
Dividend receivable
Other accounts receivable 41,324,029.01 264,926.45 36,134,933.46 80,906.33
Inventories 317,165,387.03 314,874,172.31
Non-current assets due within 1 year 4,658,840.16 2,717,019.83
Other current assets
Total current assets 1,512,393,952.97 11,767,918.20 1,493,251,683.54 13,928,427.08
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable 55,131,374.54 49,751,452.73
Long-term equity investment 40,000.00 990,854,030.83 40,000.00 990,854,030.83
Investing property 64,151,270.60 57,590,569.82 65,585,318.46 58,377,827.95
Fixed assets 257,756,408.00 2,812,546.08 273,192,094.56 3,521,310.33
Construction in progress 4,891,501.78 99,000.00 6,821,449.43 1,278,000.00
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 3,023,512.26 1,077,560.17 3,514,775.75 1,204,109.34
R&D expense
Goodwill
Long-term deferred expenses 8,237,721.15 1,453,967.53 6,979,767.93 113,042.04
Deferred income tax assets 16,993,745.49 16,993,745.49
Other non-current assets
Total of non-current assets 410,225,533.82 1,053,887,674.43 422,878,604.35 1,055,348,320.49
Total assets 1,922,619,486.79 1,065,655,592.63 1,916,130,287.89 1,069,276,747.57
10
Balance Sheet –Continued (Un-audited)
As at 31 Mar. 2012
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 107,003,100.00
Transactional financial liabilities
Notes payable 37,794,806.97 44,434,948.83
Accounts payable 667,987,256.96 102,482.22 857,656,434.60 59,885.95
Accounts received in advance 14,465,445.72 210,000.00 13,928,863.22
Employee’s compensation payable 31,994,352.32 123,972.16 45,828,794.36 168,972.16
Tax payable 7,342,867.15 1,666,087.22 (11,309,225.00) 1,620,858.22
Interest payable
Dividend payable
Other accounts payable 199,614,645.26 601,982,631.47 94,564,576.55 606,206,909.07
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 1,066,202,474.38 604,085,173.07 1,045,104,392.56 608,056,625.40
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Deferred income
Estimated liabilities
Deferred income tax liabilities 695,407.98 695,407.98
Other non-current liabilities 39,923,170.80 39,923,170.80
Total non-current liabilities 40,618,578.78 0.00 40,618,578.78 0.00
Total liabilities 1,106,821,053.16 604,085,173.07 1,085,722,971.34 608,056,625.40
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 (776,988,448.12) (774,264,838.84) (766,215,441.88) (774,615,136.23)
Foreign exchange difference (311,675.41) (311,272.66)
Total equity attributable to owners of the
460,085,158.39 461,570,419.56 470,858,567.38 461,220,122.17
Company
Minority interests 355,713,275.24 359,548,749.17
Total owners’ equity 815,798,433.63 461,570,419.56 830,407,316.55 461,220,122.17
Total liabilities and owners’ equity 1,922,619,486.79 1,065,655,592.63 1,916,130,287.89 1,069,276,747.57
Legal Representative: Jian Derong CFO: Chen Zongyi Accounting Manager: Chen Zongyi
11
4.2 Income Statement
Income Statement (Un-audited)
1 Jan.-31 Mar. 2012
Prepared by Tsann Kuen (China) Enterprise Co., Ltd. Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 468,654,073.31 2,838,132.20 664,479,506.22 588,357.60
II. Total operating cost 488,939,248.92 2,624,385.00 655,370,026.63 2,553,871.43
Less: Cost of sales 419,174,687.17 1,286,729.58 572,850,476.33 534,277.68
Taxes and associate charges 913,732.20 158,935.42 4,257,112.51 32,671.79
Selling and distribution expenses 24,217,356.12 23,157,067.06
Administrative expenses 47,152,363.10 1,191,497.70 53,771,831.62 1,987,550.68
Financial expenses (5,467,470.70) (9,270.58) 995,255.00 (628.72)
Asset impairment loss 2,948,581.03 (3,507.12) 338,284.11
Add: Gain/(loss) from change in fair value (“-” means loss) 1,045,679.08 12,291,092.07
Gain/(loss) from investment (“-” means loss) 3,651,625.13 2,417,462.38 67,732,295.69
Including: share of profits in associates and joint ventures
III. Business profit (15,587,871.40) 213,747.20 23,818,034.04 65,766,781.86
Add: non-operating income 981,880.74 136,550.19 3,385,133.22 143,480.32
Less: non-operating expense 2,489.51 533,764.37 90,000.00
Including: loss from non-current asset disposal 2,489.51 334,675.58
IV. Total profit (“-” means loss) (14,608,480.17) 350,297.39 26,669,402.89 65,820,262.18
Less: Income tax expense 4,756,805.06
V. Net profit (“-” means loss) (14,608,480.17) 350,297.39 21,912,597.83 65,820,262.18
Attributable to owners of the Company (10,773,006.24) 350,297.39 15,656,510.21 65,820,262.18
Minority shareholders’ income (3,835,473.93) 6,256,087.62
VI. Earnings per share
(I) basic earnings per share (0.0100) 0.0141
(II) diluted earnings per share (0.0100) 0.0141
Ⅶ. Other comprehensive incomes (402.75) (3,107.84)
Ⅷ. Total comprehensive incomes (14,608,882.92) 350,297.39 21,909,489.99 65,820,262.18
Attributable to owners of the Company (10,773,408.99) 350,297.39 15,654,179.33 65,820,262.18
Attributable to minority shareholders (3,835,473.93) 6,255,310.66
Legal Representative: Jian Derong CFO: Chen Zongyi Accounting Manager: Chen Zongyi
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4.3 Cash Flow Statement
Cash Flow Statement (Un-audited)
1 Jan.-31 Mar. 2012
Prepared by Tsann Kuen (China) Enterprise Co., Ltd. Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating activities:
Cash received from sale of commodities and
643,773,544.26 724,144,123.35
rendering of service
Tax refunds received 79,805,697.22 84,981,611.39 15,060.94
Other cash received relating to operating activities 17,940,844.80 10,485,241.81 20,147,678.69 9,622,030.22
Subtotal of cash inflows from operating activities 741,520,086.28 10,485,241.81 829,273,413.43 9,637,091.16
Cash paid for goods and services 627,969,357.06 677,338,778.45
Cash paid to and for employees 71,529,430.62 9,377,910.60 71,250,333.12 9,568,261.26
Various taxes paid 7,997,309.09 506,777.89 10,035,998.83 1,358,348.66
Other cash payment relating to operating activities 92,583,998.44 1,016,168.00 58,021,500.76 1,465,249.15
Subtotal of cash outflows from operating activities 800,080,095.21 10,900,856.49 816,646,611.16 12,391,859.07
Net cash flows from operating activities (58,560,008.93) (415,614.68) 12,626,802.27 (2,754,767.91)
II. Cash flows from investing activities:
Cash received from disposal of investments 500,000.00
Cash received from return on investments 3,651,625.13 7,500.00 67,732,295.69
Net cash received from disposal of fixed assets,
1,488,946.88 180,000.00 2,095,326.14
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or
other business units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 5,140,572.01 180,000.00 2,602,826.14 67,732,295.69
Cash paid to acquire fixed assets, intangible assets
11,444,262.47 99,400.00 9,959,076.09 76,400.00
and other long-term assets
Cash paid for investment 292,120.68
Net cash paid to acquire subsidiaries and other
business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 11,444,262.47 99,400.00 10,251,196.77 76,400.00
Net cash flows from investing activities (6,303,690.46) 80,600.00 (7,648,370.63) 67,655,895.69
III. Cash flows from financing activities:
Cash received from capital contributions
Including: Cash received from minority shareholder
investments by subsidiaries
Cash received from borrowings 107,182,100.00 131,431,000.00
Cash received from issuance of bonds
Other cash received relating to financing activities 126,384,500.00 5,000,000.00
Subtotal of cash inflows from financing activities 233,566,600.00 0.00 131,431,000.00 5,000,000.00
Repayment of borrowings
Cash paid for interest expenses and distribution of
20,292,099.87
dividends or profit
Including: dividends or profit paid by subsidiaries
20,292,099.87
to minority shareholders
Other cash payments relating to financing
2,000,000.00 30,000,000.00
activities
Sub-total of cash outflows from financing activities 0.00 2,000,000.00 20,292,099.87 30,000,000.00
Net cash flows from financing activities 233,566,600.00 (2,000,000.00) 111,138,900.13 (25,000,000.00)
IV. Effect of foreign exchange rate changes on cash
(587,839.44) (5,228.94) (396,542.40) (246.18)
and cash equivalents
V. Net increase in cash and cash equivalents 168,115,061.17 (2,340,243.62) 115,720,789.37 39,900,881.60
Add: Cash and cash equivalents at the
704,791,892.62 13,757,429.84 627,477,733.10 904,966.64
period-begin
VI. Cash and cash equivalents at the period-end 872,906,953.79 11,417,186.22 743,198,522.47 40,805,848.24
Legal Representative: Jian Derong CFO: Chen Zongyi Accounting Manager: Chen Zongyi
13
4.4 Auditor’s report
Auditor’s opinion: un-audited
§5 Other Information
5.1 Capital occupation by the principal shareholder and its affiliated enterprises for non-operating
purposes and the repayment progress thereof
□Applicable √Inapplicable
5.2 Provision of external guarantees in violation of the prescribed procedure
□Applicable √Inapplicable
Chairman of the Board: Jian Derong
Board of Directors of Tsann Kuen (China) Enterprise Co., Ltd.
26 April 2012
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