TSANN KUEN (CHINA) ENTERPRISE CO. LTD.
Semi-Annual Report 2012
(Prepared under China Accounting Standards)
Contents
I. Important Notes ..........................................................................................................................................................1
II. Company Profile ..........................................................................................................................................................1
III. Financial and Business Highlights ..........................................................................................................................2
IV. Chianges in Share Capital and Particulars about Shareholders ..........................................................................5
V. Directors, Supervors and Senior Executives ..............................................................................................................8
VI. Report of the Board of Directors ............................................................................................................................12
VII. Significant Events ...................................................................................................................................................20
VIII. Financial Report....................................................................................................................................................40
IX. Documents for Reference.......................................................................................................................................154
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
I. Important Notes
The Board of Directors, the Supervisory Committee, as well as the directors, supervisors and senior management
of Tsann Kuen (China) Enterprise Co., Ltd. (hereinafter referred to as “the Company”) hereby confirm that there
is no false information, misleading statements or any material omission carried in this report, and collectively and
individually accept the responsibilities for the truthfulness, accuracy and completeness of the whole contents of
this report.
All other directors than the following ones attended in person the board session for reviewing this report.
Reason for not attending the
Name of director Office title Name of proxy
session in person
N/A N/A N/A
The financial statements for the first half of 2012 have not been audited by a CPAs firm.
Mr. Jian Derong, company principal, and Mr. Chen Zongyi, head of the accounting work & the accounting
division (head of accounting) jointly declare that the financial statements carried in this report are true and
complete.
English Translation for Reference Only. Should there be any discrepancy between the two versions, the Chinese
version shall prevail.
Explanation:
Refer
Item Specific contents
to
Tsann Kuen, Tsann Kuen B, the Company, Refer
Tsann Kuen (China) Enterprise Co., Ltd.
Company, TKC to
Refer
Zhangzhou Tsann Kuen, TKL Tsann Kuen (Zhangzhou) Enterprise Co., Ltd.
to
II. Company Profile
（I）Basic information
A-share code B-share code 200512
A-share abbreviation B-share abbreviation MCKB
Stock exchange listed with Shenzhen Stock Exchange
Legal Chinese name of the
厦门灿坤实业股份有限公司
Company
Abbr. of the legal Chinese
闽灿坤
name of the Company
Legal English name of the
TSANNKUEN(CHINA) ENTERPRISE CO. LTD
Company
Abbr. of the legal English
TKC
name of the Company
Legal representative of the
Jian Derong
Company
Registered address No.88 Xinglong Road, Huli Industrial Park, Xiamen, P.R. China
Postal code for the registered
361006
address
Office address Tsann Kuen Industrial Park, Taiwanese Investment Zone, Zhangzhou in Fujian Province
Postal code for the office
363107
address
Internet website of the
www.eupa.com
Company
Email address mm_sun@tkl.tsannkuen.com
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
（II）For contact
Company Secretary Securities Affairs Representative
Name Sun Meimei
Tsann Kuen Industrial Park, Taiwanese
Contact address Investment Zone, Zhangzhou in Fujian
Province
Tel. 0596-6268161
Fax 0596-6268104
E-mail mm_sun@tkl.tsannkuen.com
（III）About information disclosure and where the semi-annual report is placed
Newspapers designated by the Company for
Domestic: Securities Times; Overseas: Hong Kong Ta Kung Pao
information disclosure
Internet website designated by CSRC for
www.cninfo.com.cn
disclosing the semi-annual report
Tsann Kuen Industrial Park, Taiwanese Investment Zone, Zhangzhou in Fujian
Where the semi-annual report is placed
Province
III. Financial and Business Highlights
（I）Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
√ Yes □ No □ Inapplicable
Major accounting data
Same period of last year Increase/decrease (%)
Reporting period
Major accounting data Before the After the
(Jan.-Jun.) After the adjustment
adjustment adjustment
Gross operating revenues (RMB
1,069,083,488.49 1,373,364,867.20 1,372,466,731.24 -22.1%
Yuan)
Operating profit (RMB Yuan) -26,995,821.44 30,615,169.90 26,778,915.68 -200.81%
Total profit (RMB Yuan) -25,734,697.55 35,183,410.97 31,382,604.64 -182%
Net profit attributable to
shareholders of the Company (RMB -19,378,850.76 22,548,469.85 19,726,360.04 -198.24%
Yuan)
Net profit attributable to
shareholders of the Company after
-18,876,331.13 7,619,492.26 4,797,382.45 -493.47%
deducting non-recurring gains and
losses (RMB Yuan)
Net cash flow from operating
-46,565,599.37 -124,787,026.82 -130,078,354.37 64.2%
activities (RMB Yuan)
As at the end of last year Increase/decrease (%)
As at the end of this
reporting period Before the After the
After the adjustment
adjustment adjustment
Total assets (RMB Yuan) 2,039,916,031.96 2,002,896,080.72 1,963,870,832.92 3.87%
Owners’ equity attributable to
shareholders of the Company (RMB 448,126,531.15 483,955,065.10 462,458,624.03 -3.1%
Yuan)
Share capital (share) 1,112,350,077.00 1,112,350,077 1,112,350,077.00 0%
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Major financial indexes
Same period of last year Increase/decrease (%)
Reporting period
Major financial indexes Before the
(Jan.-Jun.) After the adjustment After the adjustment
adjustment
Basic EPS (RMB Yuan/share) -0.02 0.02 0.02 -212.78%
Diluted EPS (RMB Yuan/share) -0.02 0.02 0.02 -212.78%
Basic EPS after deducting
non-recurring gains and losses -0.02 0.01 0 -600%
(RMB Yuan/share)
Fully diluted ROE（%） -4.32% 4.66% 4.27% -201.38%
Weighted average ROE（%） -4.26% 4.77% 4.27% -8.53%
Fully diluted ROE after deducting
-4.21% 1.57% 1.04% -506.06%
non-recurring gains and losses（%）
Weighted average ROE after
deducting non-recurring gains and -4.15% 1.61% 1.04% -5.18%
losses（%）
Net cash flow per share from
operating activities (RMB -0.04 -0.11 -0.12 66.67%
Yuan/share)
As at the end of last year Increase/decrease (%)
As at the end of this
reporting period Before the
After the adjustment After the adjustment
adjustment
Net assets per share attributable to
shareholders of the Company 0.4 0.44 0.42 -4.76%
(RMB Yuan/share)
Liability/asset ratio（%） 60.76% 57.68% 58.25% 4.32%
Notes to major accounting data and financial indexes before the end of this reporting period (please write an
adjustment note if there’s any retrospective adjustment):
On 10 Mar. 2012, Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. and Sino Global Development Limited signed the
Equity Transfer Agreement, with the latter transferring 100% equity interests of East Sino Development Limited
(its wholly-funded subsidiary) to the former at the price of US$ 6.30 million. On 11 Jun. 2012, Tsann Kuen
(Zhangzhou) Enterprise Co., Ltd. completed the equity registration alteration formalities regarding its acquisition
of equity interests of East Sino Development. This transaction made a business combination under the same
control and East Sino Development was consolidated by the Company since the transaction was concluded. See
the table above for relevant data.
（II）Accounting data differences under the domestic and overseas accounting standards
1. Net profit and net asset differences between financial reports disclosed according to the international and
Chinese accounting standards respectively
□ Applicable √ Inapplicable
2. Net profit and net asset differences between financial reports disclosed according to the overseas and
Chinese accounting standards respectively
√ Applicable □ Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of listed Owners’ equity attributable to shareholders of
company listed company
Reporting period Same period of last year Closing amount Opening amount
As per Chinese accounting -19,378,850.76 19,726,360.04 448,126,531.15 462,458,624.03
standards
Items and amounts adjusted in accordance with overseas accounting standards:
As per overseas accounting -19,378,850.76 20,435,762.87 448,126,531.15 462,458,624.03
standards
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
3. Specific items involving significant difference
Involved provisions of international
Items involving significant difference Amount (RMB Yuan) Reason for the difference
and/or overseas accounting standards
Offset the depreciation this year of the added value
of fixed assets of which value is estimated to 0.00
increase in 1993
4. Notes to accounting data differences under the domestic and overseas accounting standards
A. Adjustment due to the adoption of swap exchange rates in the calculation of fixed assets acquired before 1994
was fully amortized in Dec. 2010.
B. The depreciation this year of the added value of fixed assets of which value is estimated to increase in 1993 is
fully amortized in 2011.
（III）Items of non-recurring gains and losses
√Applicable □Inapplicable
Items Amount (RMB Yuan) Notes
Gains and losses on disposal of non-current assets 1,665,924.62
Tax rebate, reduction or exemption due to un-authorized approval or the lack of formal approval
documents
Government grants recognized in the current year, except for those acquired in the ordinary
course of business or granted at certain quotas or amounts according to the country’s unified 693,042.00
standards
Capital occupation fees received from non-financial enterprises that are included in current gains
and losses
Gains generated when the investment costs of the Company’s acquiring subsidiaries, associates
and joint ventures are less than the fair value of identifiable net assets in the investees
attributable to the Company in the acquisition of the investments
Exchange gains and losses of non-monetary assets
Gains and losses through entrusting others to invest or manage assets
Various asset impairment provisions due to acts of God such as natural disasters
Gains and losses on debt restructuring
Enterprise reorganization expenses, such as expenses on employee settlement and integration
Gains and losses on the parts exceeding the fair value when prices of transactions become unfair
Net current gains and losses from the period-begin to the combination date of subsidiaries due to
business combinations under the same control
Gains and losses on contingent matters which are irrelevant to the normal operation of the
Company
Gains and losses on fair value changes of transactional financial assets and liabilities, and
investment gains on disposal of transactional financial assets and liabilities and
-2,084,161.34
available-for-sale financial assets, except for the effective hedging business related to the
Company’s normal operation
Reversal of impairment provisions for accounts receivable which are separately tested for
impairment signs
Gains and losses on entrustment loans from external parties
Gains and losses on fair value changes of investing properties for which the fair value method is
adopted for subsequent measurement
Current gain and loss effect due to a just-for-once adjustment to current gains and losses
according to requirements of taxation and accounting laws and regulations
Custodian fee income from entrusted operations with the Company
Other non-operating incomes and expenses besides the items above -1,097,842.73
Other gain and loss items that meet the definition of non-recurring gains and losses
Minority interests effects 320,517.82
Income tax effects 0.00
Total -502,519.63 --
Explanation given by the Company to “other gain and loss items that meet the definition of non-recurring gains and losses” and when
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
it recognizes a non-recurring gain and loss item as a recurring one according to the nature and features of its ordinary business
Item Amount involved (RMB Yuan) Notes
IV. Changes in Share Capital and Particulars about Shareholders
（I）Changes in share capital
1. Statement of changes of shares
√Applicable □Inapplicable
Before the change Increase/decrease (+, -) After the change
Capitalizat
Issuan
ion of Propor
Proporti ce of Bonus
Number public Others Subtotal Number tion
on (%) new shares
reserve (%)
shares
fund
I. Non-floating shares
1. Sponsors’ shares
Including: shares held by
the state
Shares held by domestic
legal persons
Shares held by overseas
legal persons
Others
2. Shares placed by legal
persons
3. Staff shares
4. Preferred shares or
others
Ⅱ. Floating shares 1,112,350,077 100% 1,112,350,077 100%
1. RMB ordinary shares
2. Domestically listed
1,112,350,077 100% 1,112,350,077 100%
foreign shares
3. Overseas listed foreign
shares
4. Others
Ⅲ. Total shares 1,112,350,077 100% 1,112,350,077 100%
Approval of share changes (if applicable)
Transfers in share changes
Influence of share changes on the latest financial indexes such as EPS and net assets per share (if any)
Other contents that the Company thinks necessary or is asked by securities regulators to be disclosed
2. Changes of shares subject to trading moratorium
□ Applicable √ Inapplicable
（II）Issuance and listing of securities
1. Securities issues in the previous three years
□Applicable √Inapplicable
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
2. Changes of the Company’s share number and structure, as well as the corresponding changes in its
asset-liability structure
□Applicable √Inapplicable
3. Existing employee shares
□Applicable √Inapplicable
（III）Shareholders and actual controller
1. Total number of shareholders at the end of the reporting period
The Company had 32,462 shareholders in total at the end of the reporting period.
2. Shareholding of the top ten shareholders
√Applicable □Inapplicable
Particulars about shares held by the top ten shareholders
Shareholdin Number of Pledged or frozen shares
Nature of g Total shares held at shares held
Name of shareholder (full name)
shareholder percentage the period-end subject to trading Status of Number of
(%) moratorium shares shares
FORDCHEE DEVELOPMENT Overseas
29.1% 323,643,179 0 0
LIMITED legal person
EUPA INDUSTRY Overseas
13.83% 153,802,306 0 0
CORPORATION LIMITED legal person
FILLMAN INVESTMENTS Overseas
2.49% 27,729,575 0 0
LIMITED legal person
Overseas
TIMMERTON CO INC 1.3% 14,505,644 0 0
legal person
Domestic
CHEN YONGQUAN natural 0.9% 10,012,483 0 0
person
Overseas
CHEN LIJUAN natural 0.55% 6,076,746 0 0
person
Overseas
CHEN YONGQING natural 0.53% 5,889,589 0 0
person
SHANGHAI HONG KONG
Overseas
WANGUO SECURITIES CO., 0.43% 4,810,002 0 0
legal person
LTD.
Overseas
CSC SECURITIES (HK) LTD. 0.39% 4,350,179 0 0
legal person
Overseas
CAI SHUHUI natural 0.39% 4,294,433 0 0
person
The top three shareholders are the Company’s corporate controlling shareholders. Shareholder
Tsai Shuhui is the wife of Wu Tsann Kuen, the Company’s actual controller. It is unknown to
Notes to particulars about
the Company whether there exists associated relationship among the shareholders above or they
shareholders
are acting-in-concert entities as stipulated in the Administrative Measures on Information
Disclosure of Changes in Shareholding of Listed Companies.
Particulars about shares held by the top ten shareholders holding shares not subject to trading moratorium
√Applicable □Inapplicable
Number of shares held Type and number of shares
not subject to trading
Name of shareholder
moratorium at the Type Number
period-end
FORDCHEE DEVELOPMENT LIMITED 323,643,179 B-share 323,643,179
EUPA INDUSTRY CORPORATION LIMITED 153,802,306 B-share 153,802,306
FILLMAN INVESTMENTS LIMITED 27,729,575 B-share 27,729,575
TIMMERTON CO INC 14,505,644 B-share 14,505,644
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
CHEN YONGQUAN 10,012,483 B-share 10,012,483
CHEN LIJUAN 6,076,746 B-share 6,076,746
CHEN YONGQING 5,889,589 B-share 5,889,589
SHANGHAI HONG KONG WANGUO
4,810,002 B-share 4,810,002
SECURITIES CO., LTD.
CSC SECURITIES (HK) LTD. 4,350,179 B-share 4,350,179
CAI SHUHUI 4,294,433 B-share 4,294,433
Explanation on associated relationship among the top ten shareholders or/and acting-in-concert
The top three shareholders are the controlling legal-person shareholders and Shareholder Cai Shuhui is the director of the related
party Tsann Kuen (Taiwan) Enterprise Co., Ltd.. Except for that, it is unknown whether the other tradable share holders above are
related parties or whether they are parties acting in concert as stipulated in the Administrative Methods for Information Disclosure
Regarding Shareholding Changes of Listed Companies.
A strategic investor or ordinary legal person becomes one of the top ten shareholders due to placement of new shares:
□Applicable √Inapplicable
3. Controlling shareholder and actual controller
（1）Change of the controlling shareholder and actual controller
□Applicable √Inapplicable
（2）Particulars about the controlling shareholder and actual controller
Is there a new actual controller?
□ Yes √ No □ Inapplicable
Name of the actual controller Wu Cankun
Type of the actual controller Foreigner
Particulars:
Name: Wu Cankun
Nationality: Taiwan
Whether he has the right of residence in other countries or territories: Nil
Job occupations and positions over the past five years: Promoter of TSANN KUEN Group in China and Taiwan.
（3）Illustration on the relationship between the Company and its actual controller
（4）The actual controller controls the Company via trust or other ways of asset management.
□Applicable √Inapplicable
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
4. Other corporate shareholders with a shareholding over 10%
√Applicable □Inapplicable
Registere
Legal Incorporated Main operating business or d capital
Name of corporate shareholder Currency
representative date management activities (RMB ’00
00)
13,424.68
FORDCHEE DEVELOPMENT LTD Jian Derong 3 Jan. 1990 Investment HKD
51
EUPA INDUSTRY CORPORATION 12,600.27
Jian Derong 21 Jul. 1989 Investment HKD
LTD 6
Notes
（IV）Convertible corporate bonds
□Applicable √Inapplicable
V. Directors, Supervisors and Senior Management
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
（I）Shareholding changes of directors, supervisors and senior management
Shareholding Shareholding Receives
Share
Shareholding increase decrease Shareholding Including: payment
Beginning Ending date options held
at the during this during this at the restricted Reasons for from
Name Position Gender Age date of office of office at the
period-begin reporting reporting period-end shares held change shareholder
term term period-end
(share) period period (share) (share) units or other
(share)
(share) (share) related units?
Jian Derong Chairman Male 50 21 May 2011 20 May 2014 0 0 0 0 0 0 Yes
Zhuang Xing Director Male 57 21 May 2011 20 May 2014 0 0 0 0 0 0 Yes
Pan Zhirong Director Male 45 21 May 2011 20 May 2014 0 0 0 0 0 0 No
Chen Yanjun Director Male 50 21 May 2011 20 May 2014 0 0 0 0 0 0 Yes
Independent
Lu Jianxin Male 65 21 May 2011 20 May 2014 0 0 0 0 0 0 No
director
Independent
Tu Liandong Male 45 21 May 2011 20 May 2014 0 0 0 0 0 0 No
director
Independent
Ge Xiaoping Female 49 21 May 2011 20 May 2014 0 0 0 0 0 0 No
director
Luo
Supervisor Male 57 21 May 2011 20 May 2014 0 0 0 0 0 0 Yes
Qingxing
Wei Leaving
Supervisor Male 46 21 May 2011 24 Jul. 2012 0 0 0 0 0 0 Yes
Xuezhong office
Leaving
Cai Shuren Supervisor Male 47 21 May 2011 24 Jul. 2012 0 0 0 0 0 0 No
office
Pan Zhirong GM Male 45 26 Jul. 2010 25 Jul. 2013 0 0 0 0 0 0 No
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Company
Sun Meimei Female 37 23 Apr. 2011 0 0 0 0 0 0 No
Secretary
Chen Zongyi CFO Male 35 17 Jul. 2008 0 0 0 0 0 0 No
Yang New
Supervisor Male 47 24 Jul. 2012 20 May 2014 0 0 0 0 0 0 Yes
Yongquan employee
Yang New
Supervisor Male 55 24 Jul. 2012 20 May 2014 0 0 0 0 0 0 No
Yusheng employee
Total -- -- -- -- -- -- --
Equity incentives granted to directors, supervisors and senior management during the reporting period
□Applicable √Inapplicable
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
（II）Post-holding particulars
Post-holding in shareholders units
√Applicable □Inapplicable
Name of the
Position in
person holding Receives payment
the Beginning date Ending date of
any post in any Name of the shareholder unit from the shareholder
shareholder of office term office term
shareholder unit?
unit
unit
Jian Derong Star Comgistic Capital Co., Ltd. Director 14 Feb. 2012 4 Mar. 2013 Yes
Jian Derong Fordchee Development Ltd Director 26 Feb. 2009 No
Jian Derong Eupa Industry Corporation Ltd Director 26 Feb. 2009 No
Jian Derong Fillman Investments Limited Director 26 Feb. 2009 No
Chen Yanjun Star Comgistic Capital Co., Ltd. GM 23 Nov. 2009 Yes
Chen Yanjun Fordchee Development Ltd Director 26 Feb. 2009 No
Chen Yanjun Eupa Industry Corporation Ltd Director 26 Feb. 2009 No
Chen Yanjun Fillman Investments Limited Director 26 Feb. 2009 No
Notes to
post-holding in
shareholder
units
Post-holding in other units
√Applicable □Inapplicable
Name of the Receives
person holding Position in other Beginning date Ending date of payment
Name of other unit
any post in unit of office term office term from other
other units unit?
Jian Derong Tsann Kuen Japan Co., Ltd. President 12 May 2008 No
Tsann Kuen (Zhangzhou) South Port Electronics
Jian Derong Chairman 25 Apr. 2008 No
Enterprise Co., Ltd.
Jian Derong Shanghai Star Commerce & Trade Co., Ltd. Chairman 25 Apr. 2008 No
Jian Derong Brilliant Leader Co., Ltd. Director 9 Aug. 2010 27 Jul. 2012 No
Jian Derong Globe Strong Co., Ltd. Director 9 Aug. 2010 27 Jul. 2012 No
Jian Derong Sino Global Development Limited Director 11 Nov. 2009 No
Jian Derong Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. Chairman 15 Jul. 2008 Yes
Lu Jianxin Xiamen Association of Listed Companies Chairman 1 Nov. 2006 Yes
Xiamen branch of BDO China Shu Lun Pan
Ge Xiaoping Chief 1 Sept. 2010 Yes
Certified Public Accountants LLP
Tu Liandong Xiamen Power Investment Co., Ltd. CFO 1 May 2003 Yes
Luo Qingxing Thermaster Electronic (Xiamen) Ltd. Vice GM 1 May 2011 Yes
Yang Yongquan Tsann Kuen (Taiwan) Enterprise Co., Ltd. Vice GM 1 Oct. 2003 Yes
Zhuang Xing Star Travel International (Xia Men) Co.,Ltd. Director 31 Jan. 2011 30 Jan. 2014 No
Notes to
post-holding in
other units
（III）Remuneration for directors, supervisors and senior management
Decision-making
procedure for the According to the Company Law, the Securities Law and other laws and regulations, the procedure shall
remuneration of directors, be reviewed and approved by the Board of Directors/ the Supervisory Committee and later by the
supervisors and senior Shareholders’ General Meeting.
management
Basis for determining the
remuneration of directors,
Decided according to the Company’s human resource management system
supervisors and senior
management
Actual payment of the Independent directors are paid on a quarterly basis while others are paid on a monthly basis. A total of
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
remuneration of directors, RMB 0.69 million was paid as remuneration during the reporting period.
supervisors and senior
management
（IV）Change of directors, supervisors and senior management
Name Position Way of change Date of change Reason for change
Wei Shareholder-represen
Leaving office 24 Jul. 2012 Personal reason
Xuezhong tative supervisor
Staff-representative
Cai Shuren Leaving office 24 Jul. 2012 Personal reason
supervisor
Yang Shareholder-represen
New employee 24 Jul. 2012 Re-election
Yongquan tative supervisor
Yang Staff-representative
New employee 24 Jul. 2012 Re-election
Yusheng supervisor
（V）Employees
Number of on-job employees 4,670
Number of retired employees for whom the Company shall bear
0
expenses
Function structure
Type of function Number of personnel
Production 2,809
Sale 279
Technical 620
Financial 117
Administration 845
Level of education
Level of education Number of personnel
Masters 6
Bachelors 350
Junior college graduates 427
High school graduates and below 3,887
Notes to the employee particulars:
N/A
VI. Report of the Board of Directors
（I）Discussion and analysis by the management
For the reporting period, the Company achieved operating revenue of RMB 1.069 billion, down 22.10%
over RMB 1.372 billion at the same period of last year; and net profit of RMB -20 million, down 200%
over RMB 20 million at the same period of last year. Due to the weak export market, the decreased
operating income and Renminbi appreciation, the gross profit of the Company’s export decreased, along
with the inventory turnover. Meanwhile, impairment provisions were made for some assets. As a result, the
operating income and profit both decreased on a year-on-year basis.
The Company will keep in mind the strategic goals set—focusing on main business, improving operational
management and expanding emerging market, with “cash and profit growth” as the highest guiding
principle, customers’ needs as the orientation, product quality as a guarantee and technical innovation as
the means. Taking into account the domestic and international economic trends in the year, the Company
will make innovations in terms of R&D, trade, manufacture, procurement, domestic market development,
etc. so as to turn loss into profit. Meanwhile, in the second half of the year, the Company will accelerate
the expansion of the domestic marketing network, beef up marketing effort and deepen the development of
an excellent Asia market brand. It will also accelerate the vertical integration of overseas production bases,
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
satisfy customers’ global procurement needs, stabilize and develop the long-term cooperation relationship
with customers so as to achieve stable development on all business lines of the Company.
Is the Company’s actual business performance 20% lower or higher than any earning forecast or business
plan for the reporting period which has been publicly disclosed earlier?
□ Yes □ No √ Inapplicable
Analysis to the business and performances of the Company’s main subsidiaries and stock-participating
companies:
01. Tsann Kuen (Shanghai) Enterprise Co., Ltd.
A. Business Nature: manufacturing
B. Business Scope: Production of household appliances, electronic, light industry products, modern office
equipments and their related modules, computers and their related facilities or spare parts. Development of
computer software, IC encapsulation and testing; sale of self-made products (the export of which was not
restricted by any requirements involving licenses and quotas; Where a license is required, such a license
should be obtained before operation.)
C. Registered Capital: USD 40,000,000
D. Assets Scale: RMB 94,620,000
E. Net Assets: RMB 92,450,000
F. Net Profit: RMB -980,000
02. Tsann Kuen (Zhangzhou) Enterprise Co., Ltd.
A. Business Nature: Manufacturing
B. Business Scope: Development, production and sale of new kind of electronic appliances and parts (such
as electrical kits, sensors and sensitive transmitters), light industrial products, modern office supplies,
communication materials, digital products, bodies of car, fitness equipment, medical equipment (not
including B Ultrasonic equipment) (not including pre-approved license items), playground equipment(not
including special equipment), electronic musical instrument, various lamps and lighting equipment as well
as other mechanical and electrical equipment; designing and producing the molds related to the above
products. Processing and manufacturing nonferrous metal composed materials, new-typed alloy materials,
marketing self-made products and semi-manufactured products, processing supplied materials and
processing with supplied materials or given samples & assembling supplied components. (Excluding those
products restricted by the government or those whose import or export quota is under license
administration.)；Wholesale of various kinds of food products such as coffee, rice balls and dough and etc.;
Wholesale of various kinds of small house appliance and their aftersales services and technical support
services (Excluding those products whose international trade, import or export quota, export quota bids
and export license are under license administration)(When involved in those projects which need to be
examined and approved first, the company carries out its operation and production only within the range
and within the valid period set in the license.)
C. Registered Capital: USD 160,000,000
D. Assets Scale: RMB 2,431,980,000
E. Net Assets: RMB 1,264,790,000
F. Net Profit: RMB -10,870,000
G. The influence of net profit exceeded 10%:
Main business income: RMB 985,070,000
Main business Cost: RMB 891,460,000
03. Tsann Kuen (Zhangzhou) South Port Electronics Enterprise Co., Ltd.
A. Business Nature: Manufacturing
B. Business Scope: Development, production and sale of small household electrical appliances, new kind
13
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
of electronic appliances and parts (such as electrical kits, sensors and sensitive transmitters), light
industrial products, modern office supplies; designing and producing the molds related to the above
products; Processing and manufacturing nonferrous metal composed materials, new-typed alloy materials,
marketing self-made products and semi-manufactured products, (Excluding those products restricted by
the government or those whose import or export quota is under license administration.) Wholesale of
electrical equipment, chemical products (not including dangerous products), hardware sheets, metal
materials, packaging materials and household appliances. (Excluding those products whose international
trade, import or export quota, export quota bids and export license are under license administration); agent
business (except public auction)(When involved in those projects which need to be examined and
approved first, the company carries out its operation and production only within the range and within the
valid period set in the license.)
C. Registered Capital: USD 5,000,000
D. Assets Scale: RMB 11,760,000
E. Net Assets: RMB 11,210,000
F. Net Profit: RMB 140,000
04. Tsann Kuen (Zhangzhou) Vocational Technical Institute
A. Business Nature: Education and training
B. Business Scope: Secondary vocational education
C. Registered Capital: RMB 3,000,000
D. Assets Scale: RMB 2,450,000
E. Net Assets: RMB -170,000
F. Net Profit: RMB -2,160,000
05. Shanghai Star Commerce & Trade Co., Ltd.
A. Business Nature: Sales of household electrical appliances
B. Business Scope: Import & Export, Wholesales, retail and its after-sale services of household appliances,
computer sets and their components, communication equipments, mechanical and electrical equipments,
office supplies and the related attachments (including kitchen facilities). Self-operating and acting as an
agent of various kinds of merchandise and import & export of technology; wholesale and retail of roasted
coffee powder and general merchandise, as well as other sales (not real foods).
C. Registered Capital: RMB 4,950,000
D. Assets Scale: RMB 19,180,000
E. Net Assets: RMB 6,090,000
F. Net Profit: RMB 80,000
06. Xiamen Star International Travel Service Co., Ltd.
A. Business Nature: Tourism
B. Business Scope: 1. Inbound and domestic tourism services; 2. Agent for personal accident insurance
(Where an administrative license is required, such a license will be obtained before operation.)
C. Registered Capital: RMB 5,000,000
D. Assets Scale: RMB 3,990,000
E. Net Assets: RMB -4,770,000
F. Net Profit: RMB -1,480,000
07. Xiamen Star Commerce & Trade Co., Ltd.
A. Business Nature: Sale of household appliances
B. Business Scope: 1. Wholesale and retail: daily necessities, household appliances, computer sets and
14
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
auxiliary products, communication equipments, electrical and mechanical equipments, office supplies,
kitchen supplies and their auxiliary products; 2. Import and export of various goods and technologies
(Without the attachments of catalogue of export & import products), while excluding those products and
technologies restricted by the government or to be imported or exported. (Where an administrative license
is required, such a license will be obtained before operation.)
C. Registered Capital: RMB 30,000,000
D. Assets Scale: RMB 29,290,000
E. Net Assets: RMB 29,390,000
F. Net Profit: RMB 130,000
08. Xiamen Star Comgistic Capital Co., Ltd
A. Business Nature: Sale of household appliances
B. Business Scope: 1. Wholesale and retail: daily necessities, household appliances, computer sets and
auxiliary products, communication equipments, electrical and mechanical equipments, office supplies,
kitchen supplies and their auxiliary products; 2. Import and export of various goods and technologies
(Without the attachments of catalogue of export & import products), while excluding those products and
technologies restricted by the government or to be imported or exported. (Where an administrative license
is required, such a license will be obtained before operation.)
C. Registered Capital: RMB 28,000,000
D. Assets Scale: RMB 27,980,000
E. Net Assets: RMB 27,980,000
F. Net Profit: RMB 1,000
09. Shanghai Fanxin Airlines Service Co., Ltd.
A. Business Nature: Ticket agent
B. Business Scope: Ticket agent service in passenger transportation of civil aviation for domestic routes
and international routes, or HK, Macau and Taiwan routes. (Where an administrative license is required,
such a license will be obtained before operation.)
C. Registered Capital: RMB 5,500,000
D. Assets Scale: RMB 3,220,000
E. Net Assets: RMB 300,000
F. Net Profit: RMB -1,910,000
10. Star (Dalian) International Travel Service Co., Ltd.
A. Business Nature: Tourism
B. Business Scope: Inbound and outbound travel services; domestic travel service; R&D and sales of
tourism products.
C. Registered Capital: RMB 5,300,000
D. Assets Scale: RMB 8,070,000
E. Net Assets: RMB -1,730,000
F. Net Profit: RMB -1,580,000
11. Xiamen Star Airlines Service Co., Ltd.
A. Business Nature: Ticket agent
B. Business Scope: Ticket agent service (in passenger transportation of civil aviation for domestic routes,
excluding HK, Macau and Taiwan routes).
C. Registered Capital: RMB 1,500,000
D. Assets Scale: RMB 2,470,000
15
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
E. Net Assets: RMB 1,150,000
F. Net Profit: RMB 40,000
12. Brilliant Leader Co., Ltd.
A. Business Nature: Comprehension
B. Business Scope: Trade, purchasing agent, R&D of small household appliances and market research,
etc..
C. Registered Capital: USD 4,950,000
D. Assets Scale: RMB 30,360,000
E. Net Assets: RMB 30,360,000
F. Net Profit: RMB 380,000
13. Globe Strong Co., Ltd.
A. Business Nature: Comprehension
B. Business Scope: Trade, purchasing agent, R&D of small household appliances and market research,
etc..
C. Registered Capital: USD 50,000
D. Assets Scale: RMB 310,000
E. Net Assets: RMB 310,000
F. Net Profit: RMB -600
14. PT.TSANN KUEN ZHANGZHOU INDONESIA
A. Business Nature: Manufacturing
B. Business Scope: Manufacturing of small household appliances
C. Registered Capital: USD 5,000,000
D. Assets Scale: RMB 22,690,000
E. Net Assets: RMB 23,090,000
F. Net Profit: RMB -2,700,000
15. East Sino Development Limited
A. Business Nature: Investment
B. Business Scope: Investment
C. Registered Capital: HKD 57,993,000
D. Assets Scale: RMB 47,100,000
E. Net Assets: RMB 47,070,000
F. Net Profit: RMB -26,000
16. PT. STAR COMGISTIC INDONESIA
A. Business Nature: Manufacture and Leasing
B. Business Scope: Development, production and sale of display equipment, LCD TVs, droplights, desk
lamps, LED lamps, fluorescent lamps and other small household appliances.
C. Registered Capital: USD 7,500,000
D. Assets Scale: RMB 90,530,000
E. Net Assets: RMB 29,480,000
F. Net Profit: RMB -6,090,000
All risk factors that might have adverse impact on the Company’s effort to realize its future development
strategy and business goals:
N/A
16
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
1. Main business lines and their operating results
（1）Main business lines classified by industries and products
Unit: RMB Yuan
Increase/decrease Increase/decrease
Increase/decrease
of operating of gross profit
of operating cost
Industries/product Operating Gross profit rate revenue rate compared
Operating cost compared with
s revenue (%) compared with with the same
the same period
the same period period last year
last year (%)
last year (%) (%)
Industries
Household
appliance 1,021,333,797.38 928,541,975.57 9.09% -22.92% -20.09% -3.22%
manufacture
Tourism 23,308,240.78 21,048,803.46 9.69% 114.79% 116.69% -0.79%
Products
Gourmet cooking 582,393,490.23 535,280,111.34 8.09% -11.24% -5.99% -5.13%
Home assistant 261,169,345.25 239,323,135.82 8.36% -41.06% -40.66% -0.62%
Tea/coffee 108,701,447.51 95,297,668.22 12.33% -9.75% -12.06% 2.3%
LED
green-energy 54,449,772.35 47,527,709.62 12.71% -13.48% -7.5% -5.64%
products
Other 14,619,742.04 11,113,350.57 23.98% -65.6% -62.48% -6.32%
Tourism 23,308,240.78 21,048,803.46 9.69% 114.79% 116.69% -0.79%
Explanation to the main business performances classified by industries and products:
The total amount of related-party transactions arising from the Company selling products to and providing
services for the controlling shareholder and its subsidiaries stood at RMB 104,988,000 for the reporting
period.
Explanation to the reasons for any significant year-on-year change of the gross profit rate:
N/A
（2）Main business lines classified by regions
Unit: RMB Yuan
Increase/decrease compared with the same
Region Operating revenue
period last year (%)
Australia 62,458,640.05 -23.68%
Africa 12,780,284.07 -15.87%
America 382,338,083.85 -30.69%
Europe 202,912,779.50 -20.84%
Asia 384,152,250.69 -10.86%
Explanation to the main business performances classified by regions:
N/A
Explanation to the main business structure:
N/A
（3）Reasons for significant changes in main business and its structure
□Applicable √Inapplicable
（4）Reasons for significant changes in profitability of main business (gross profit rate) compared
with that in the last year
□Applicable √Inapplicable
17
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
（5）Analysis on reasons of significant changes in profit breakdown compared with the last year
√Applicable □Inapplicable
The main business income of the reporting period was down 21.80% on a year-on-year basis. Due to the
weak export market, the decreased operating income and Renminbi appreciation, the gross profit of the
Company’s export decreased, along with the inventory turnover. Meanwhile, impairment provisions were
made for some assets. As a result, the operating income and profit both decreased on a year-on-year basis.
（6）Business nature, main products/services, net profit and other particulars about subsidiaries
which made a contribution over 10% to the Company’s net profit for the reporting period
□Applicable √Inapplicable
(7) Problems and difficulties encountered in operation
2. Internal control rules in relation to fair value measurement
□Applicable √Inapplicable
3. Foreign-currency financial assets and liabilities held
□Applicable √Inapplicable
（II）Investments
1. General utilization of the raised funds
□Applicable √Inapplicable
2. Projects promised to be invested with raised funds
□Applicable √Inapplicable
3. Change of projects invested with raised funds
□Applicable √Inapplicable
4. Significant projects invested with non-raised funds
□Applicable √Inapplicable
(III) Revision of the Board of Directors’ business plan for the second half of the year
□Applicable √Inapplicable
(IV) Business performance estimate for Jan.-Sept. 2012
Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the
period from the beginning of the year to the end of the next report period compared with the same period
of last year, as well as the reasons
□Applicable √Inapplicable
18
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(V) Explanation of the Board of Directors on “Non-standard Auditing Report” issued
by the CPA firm for the report period
□Applicable √Inapplicable
(VI) Explanation of the Board of Directors on changes and solutions of the issues
involved in the “Non-standard Auditing Report” issued by the CPA firm for last year
□Applicable √Inapplicable
(VII) State the discussion results of the Board of Directors on the reasons and influence
of the Company’s accounting policy and estimate alterations or significant accounting
error correction
□Applicable √Inapplicable
(VIII) Formulation and execution of the Company’s cash dividend policy
In the reporting period, according to the CSRC Notice on Further Implementing Matters Related to Cash
Dividend Distribution of Listed Companies (Zheng-Jian-Fa [2012] No. 37) and the CSRC Xiamen Bureau
Notice on Further Improving the Work Mechanism Related to Dividend Distribution of Listed Companies
(Xia-Zheng-Jian-Fa [2012] No. 62), taking into account its actual situation, the Company formulated the
Plan on Cash Dividends Return for Shareholders of Tsann Kuen (China) Enterprise Co., Ltd., and amended
the profit distribution articles in its Articles of Association. For details, please refer to the Announcement
on Resolutions Made at the Third Special Session of the Board of Directors for 2012 and the
Announcement on the Plan on Cash Dividends Return for Shareholders disclosed on Securities Times,
Hong Kong Ta Kung Pao and www.cninfo.com.cn dated 13 Jul. 2012, and the Announcement on
Resolutions Made at the Second Special Shareholders’ General Meeting for 2012 and the Articles of
Association (revised on 24 Jul. 2012) disclosed on Securities Times, Hong Kong Ta Kung Pao and
www.cninfo.com.cn dated 25 Jul. 2012. Due to the Company is under the status of accumulated losses
currently, the Company will execute relevant dividends distribution in accordance with the Plan on Cash
Dividends Return for Shareholders after making up the accumulated losses.
(IX) Pre-plan for profit distribution or turning capital reserve into share capital
□Applicable √Inapplicable
(X) The accumulative retained profit as at the end of 2011 is a positive number but the
Company has not put forward a cash dividend pre-plan.
□Applicable √Inapplicable
(XI) Other matters that need to be disclosed
Naught
(XII) The Company’s liabilities, credit changes and future cash arrangements for
debt-clearing (Only listed companies with convertible corporate bonds are required to
fill the table below.)
□Applicable √Inapplicable
19
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
VII. Significant Events
(I) Corporate governance
During the reporting period, the Company standardize its operations strictly in accordance with
requirements of relevant law and rules of Company Law, Securities Law, Code of Corporate Governance
for Listed Companies in China, Rules for Listing Shares at Shenzhen Stock Exchange and so on, and
endlessly amplified and perfected administration structure and corporate system of the Company as well as
established relatively accomplished corporate governance structure. Currently, the situation of corporate
governance structure basically accorded with regulations stipulated in regulatory documents on governance
of listed companies reported by CSRC. As for problems pointed out by Xiamen CSRC on site-inspection
has been rectified and improved with requirements. For details, please refer to Rectification and
Improvement Report Concerning Site-inspection by Xiamen CSRC released by the Company dated 29 Feb.
2012. There were no governance problems remained unsolved. The governance of the Company is as
follows:
1. Shareholders and Shareholders’ General Meeting
The Company convened Shareholders’ General Meeting in line with Articles of Association of the
Company and Rules of Procedures for Shareholders’ General Meeting, treated all shareholders with equity,
guaranteed middle and small shareholders enjoy equal status and ensured all shareholders be able to
exercise their rights. As for limitations such as insufficient of minutes etc. pointed out by Xiamen CSRC
on site-inspection, the Company has rectified and improved with requirements and would continued to
conduct standardized operation strictly.
2. Controlling shareholders and the Company
Controlling shareholders were strictly in accordance with requirements to exercise rights of promoters and
assumed responsibilities. The Company realized independence between controlling shareholder and listed
companies in business, assets, agencies and finance; and independent operation between the Board of
Directors of the Company, the Supervisory Board and internal agency which ensured independence in
accounting, assuming responsibility and bearing risks. As for problem of insufficient independence pointed
out by Xiamen CSRC on site-inspection, the Company has made rectification and improvement with
requirements and the Shareholders’ General Meeting, the Board of Directors, the Supervisory Board, and
senior management performed relevant responsibilities so as to ensure legal rights and interests of
investors.
3. Directors and the Board of Directors
The Company strictly in accordance with election procedure of directors in Articles of Association of the
Company to elect directors that the number of directors and the structure of the Board of Directors were in
line with requirements of laws and regulations. The Board of Directors earnestly executed Rules of
Procedure for the Board of Directors so as to guaranteed efficient operation and scientific strategic
decision. All directors of the Company performed their responsibilities honestly, sincerely and assiduously,
presented the Board of Directors, the Shareholders’ General Meeting seriously, and participated in relevant
trains actively. As for problem that the minutes of the Board was not signed by directors presented the
Board meeting pointed out by Xiamen CSRC on site-inspection, the Company has strictly carried out the
signatures and affirmation of minutes by directors presented the Board meeting since the 3rd Board of
Directors for 2011 convened on 21 May 2011.
4. Supervisors and the Supervisory Board
The Supervisory Board of the Company strictly in line with relevant provisions of Company Law and the
Articles of Association of the Company that the number of supervisors and the structure of the Supervisory
Board were in accordance with requirements of laws and regulations. All supervisors exercised the Rules
20
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
of Procedure for the Supervisory Board, earnestly performed their responsibilities. In light of the
responsibility for shareholders, all supervisors conducted inspection and supervision to the legitimacy
corporate finance of the Company and other significant decisions, legally performed responsibilities to
directors of the Company and senior management and supervised the implement of resolutions of the
Board of Directors and Shareholders’ General Meeting. As for problem that the Supervisory Board didn’t
distribute meeting notice independently pointed out by Xiamen CSRC on site-inspection, the Company has
released meeting notice independently with requirements.
5. Information disclosure and transparency
The Company strictly in accordance with requirements of relevant provisions and regulatory documents
such as Rules for Listing Shares at Shenzhen Stock Exchange, Guidelines on Fair Information Disclosure
of Listed Companies, performed responsibilities of information disclosure of the Company truthfully,
accurately, timely and completely, and then guaranteed the equal opportunity of all shareholders of the
Company to gain relevant information of the Company. As for the problem that senior management
released by the Company was against the actual situation pointed out by Xiamen CSRC on site-inspection,
the Company has made re-definition, perfected corporate governance structure so as to ensure the balance
of responsibilities and duties of senior management and ensure the independence of personnel and
accuracy of information disclosure.
6. There isn’t any problem on horizontal competition and related transactions that arising from partial
restructures and other issues of the Company.
In the reporting period, the Company continuing and strictly in accordance with Company Law, Securities
Law, Basic Standards for Enterprise Internal Control, Supporting Guidelines for Corporate Internal
Control as well as requirements of regulated documents of corporate governance for listed companies
published by CSRC, endlessly accomplished corporate governance structure, actively enforced corporate
governance work, and gradually perfected corporate governance and internal control system, intensified
supervision of internal control, promoted operation efficiency, operation regulation and corporate
governance level, endeavor to seek optimized profit and earnestly protected legal profit of minority
shareholders.
（II）Execution of the plans for profit distribution, turning capital reserve into share
capital or new share issuance which had been made in the previous period and were
carried out in the report period
□Applicable √Inapplicable
(III) Significant litigations and arbitrations
□Applicable √Inapplicable
The Company was not involved in any significant lawsuit or arbitration during the reporting period.
(IV) Bankruptcy or reorganization events
□Applicable √Inapplicable
(V) Holding equity of other listed companies and joint financial enterprises
1. Securities investment
□Applicable √Inapplicable
Notes of securities investment
21
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
2. Holding equity of other listed companies
□Applicable √Inapplicable
Notes of holding equity of other listed companies
3. Holding equity of non-listed financial enterprises
□Applicable √Inapplicable
Notes of holding equity of non-listed financial enterprises
4. Trading stocks of other listed companies
□Applicable √Inapplicable
Notes to trading stocks of other listed companies
(VI) Assets transaction events
1. Purchase of assets
√Applicable □Inapplicable
Net profit Net profit
contributed to the contributed to the Relationship
Company from the Company from the Whether or not Ratio of the net between the
Whether or not the
acquisition date to year-begin to the the ownership of profit transaction
Transaction party Transaction price creditor’s right and
Asset acquired or Date of the period-end period-end Related-party Pricing the asset contributed by party and the Disclosure date
or ultimate (RMB Ten liabilities involved
bought in acquisition (applicable for (applicable for transaction or not principle involved has the asset to the Company of initial special
controller thousand) have been fully
business business been fully Company to the (applicable for announcement
transferred
combinations not combinations transferred total profit (%) related-party
under the same under the same transactions)
control) control)
Under the same
Sino Global East Sino
ultimate
Development Development 11 Jun. 2012 3,981.19 -451.22 Yes Fair price Yes Yes -23% 13 Mar. 2012
controlling
Limited Limited
company
22
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Notes to purchase of assets:
On 10 Mar. 2012, Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. and Sino Global Development Limited
signed the Equity Transfer Agreement, with the latter transferring 100% equity interests of East Sino
Development Limited (its wholly-funded subsidiary) to the former at the price of US$ 6.30 million. On 11
Jun. 2012, Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. completed the equity registration alteration
formalities regarding its acquisition of equity interests of East Sino Development. This transaction made a
business combination under the same control and East Sino Development was consolidated by the
Company since the transaction was concluded. East Sino Development achieved a net profit of RMB
-4.5122 million for the reporting period, with its total assets being RMB 90.59 million, total liabilities
being RMB 61.08 million and net assets being RMB 29.20 million.
For details, see the Announcement on the Controlled Subsidiary Zhangzhou Tsann Kuen Acquiring Equity
Interests of East Sino Development & the Relevant Related-party Transaction Caused disclosed on
Securities Times, Hong Kong Ta Kung Pao and http://www.cninfo.com.cn on 13 Mar. 2012, as well as the
Announcement on the Controlled Subsidiary Zhangzhou Tsann Kuen Completing the Equity Registration
Alteration Formalities Regarding Its Acquisition of Equity Interests of East Sino Development disclosed
on Securities Times, Hong Kong Ta Kung Pao and http://www.cninfo.com.cn on 14 Jun. 2012.
2. Sale of assets
□Applicable √Inapplicable
Notes to sale of assets:
3. Exchange of assets
□Applicable √Inapplicable
Notes to exchange of assets:
23
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
4. Business combination
√ Applicable □ Inapplicable
On 10 Mar. 2012, Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. and Sino Global Development Limited
signed the Equity Transfer Agreement, with the latter transferring 100% equity interests of East Sino
Development Limited (its wholly-funded subsidiary) to the former at the price of US$ 6.30 million. On 11
Jun. 2012, Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. completed the equity registration alteration
formalities regarding its acquisition of equity interests of East Sino Development. This transaction made a
business combination under the same control and East Sino Development was consolidated by the
Company since the transaction was concluded. East Sino Development achieved a net profit of RMB
-4.5122 million for the reporting period, with its total assets being RMB 90.59 million, total liabilities
being RMB 61.08 million and net assets being RMB 29.20 million.
For details, see the Announcement on Resolutions Made at the Second Session of the Board of Directors
for 2012, Announcement on the Controlled Subsidiary Zhangzhou Tsann Kuen Acquiring Equity Interests
of East Sino Development & the Relevant Related-party Transaction Caused disclosed on Securities Times,
Hong Kong Ta Kung Pao and http://www.cninfo.com.cn on 13 Mar. 2012, as well as the Announcement on
the Controlled Subsidiary Zhangzhou Tsann Kuen Completing the Equity Registration Alteration
Formalities Regarding Its Acquisition of Equity Interests of East Sino Development disclosed on Securities
Times, Hong Kong Ta Kung Pao and http://www.cninfo.com.cn on 14 Jun. 2012.
5. Progress of these events after the publication of the assets reorganization report or public notices
on the purchases or sales of assets, as well as the influences of these events on the operation results
and financial status of the Company in this reporting period
√Applicable □Inapplicable
Progress of the relevant event after the publication of an asset acquisition announcement, as well as the
influences of the event on the operation results and financial status of the Company in this reporting
period:
(1) The proposal on the Company’s controlled subsidiary Tsann Kuen (Zhangzhou) Enterprise Co., Ltd.
(“Zhangzhou Tsann Kuen” for short) acquiring all equity interests of East Sino Development Limited—a
wholly-funded subsidiary of the Company’s related party Sino Global Development Limited was reviewed
and approved as a resolution at the 2nd board session for 2012 and the First Special Shareholders’ General
Meeting for 2012 held on 10 Mar. 2012 and 30 Mar. 2012 respectively. For details, see the Announcement
on Resolutions of the 2nd Board Session for 2012 and the Announcement on the Controlled Subsidiary
Zhangzhou Tsann Kuen Acquiring Equity Interests of East Sino Development & the Relevant
Related-party Transaction Caused disclosed on Securities Times, Hong Kong Ta Kung Pao and
http://www.cninfo.com.cn on 13 Mar. 2012, as well as the Announcement on Resolutions of the First
Special Shareholders’ General Meeting for 2012 disclosed on Securities Times, Hong Kong Ta Kung Pao
and http://www.cninfo.com.cn on 31 Mar. 2012.
As approved by the local competent authorities in Hong Kong, Zhangzhou Tsann Kuen completed on 11
Jun. 2012 the equity registration alteration formalities regarding its acquisition of East Sino Development’s
equity interests. For details, see the Announcement on the Controlled Subsidiary Zhangzhou Tsann Kuen
Completing the Equity Registration Alteration Formalities Regarding Its Acquisition of Equity Interests of
East Sino Development disclosed on Securities Times, Hong Kong Ta Kung Pao and
http://www.cninfo.com.cn on 14 Jun. 2012.
East Sino Development achieved a net profit of RMB -4.5122 million for the reporting period, with its
total assets being RMB 90.59 million, total liabilities being RMB 61.08 million and net assets being RMB
29.20 million.
(2) As resolved at the first special board session for 2012 on 31 May 2012, the controlled subsidiary Tsann
Kuen (Zhangzhou) Enterprise Co., Ltd. (“Zhangzhou Tsann Kuen” or “Party A” for short) would transfer
all equity interests of its two wholly-funded Hong Kong-based subsidiaries Brilliant Leader Co., Ltd. and
Globe Strong Co., Ltd. to its related party Rich Star Limited (“Party B” for short) at the price of US$ 4.30
million and this would form a related-party transaction. For details, see the Announcement of Resolutions
of the 1st Special Board Session for 2012 and the Announcement on the Controlled Subsidiary Zhangzhou
Tsann Kuen Transferring Equity Interests of Its Wholly-Funded Subsidiaries and the Related-Party
24
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Transactions Caused disclosed on Securities Times, Hong Kong Ta Kung Pao and
http://www.cninfo.com.cn on 1 Jun. 2012. On 10 Jul. 2012, Zhangzhou Tsann Kuen received the first stage
of the payment by Rich Star Limited (50% of the total payment, i.e. US$ 2.15 million, including US$
2.1288 for Brilliant Leader and US$ 0.0212 for Globe Strong). For details, see the Announcement on
Progress of the Controlled Subsidiary Zhangzhou Tsann Kuen Transferring Equity Interests of Its
Wholly-Funded Subsidiaries disclosed on Securities Times, Hong Kong Ta Kung Pao and
http://www.cninfo.com.cn on 11 Jul. 2012.
According to the Equity Transfer Agreement signed by Zhangzhou Tsann Kuen and Rich Star Limited, the
remaining 50% of the payment (after deducting gains and losses from the base day to the equity settlement
day) should be paid by Party B to Party A promptly after the equity transaction was concluded.
Zhangzhou Tsann Kuen completed all formalities regarding this equity transaction on 30 Jul. 2012 and
received the remaining 50% of the payment from Rich Star Limited on 2 Aug. 2012 (i.e. US$ 2,068,312.93
after deducting gains and losses from the base day to the equity settlement day, including US$
2,048,064.41 for Brilliant Leader and US$ 20,248.52 for Globe Strong). For details, see the Announcement
on Progress of the Controlled Subsidiary Zhangzhou Tsann Kuen Transferring Equity Interests of Its
Wholly-Funded Subsidiaries disclosed on Securities Times, Hong Kong Ta Kung Pao and
http://www.cninfo.com.cn on 4 Aug. 2012.
(VII) Explanation on shareholding increase scheme during the report period proposed
or implemented by the principal shareholders and act-in-concert persons
□Applicable √Inapplicable
(VIII) Implementation situation and influence of equity incentive plan of the Company
□Applicable √Inapplicable
(IX) Significant related-party transactions
25
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
1. Related-party transactions relevant to routine operation
√ Applicable □ Inapplicable
Reason for
Influence significant
Type of the Content of the Pricing principle of Transaction Transaction amount Proportion in same on the Market price difference
Settlement method of the
Related party Relationship related-party related-party the related-party price (RMB Ten (RMB Ten kind of transactions profits of (RMB Ten between the
related-party transaction
transaction transaction transaction thousand) thousand) (%) the thousand) transaction price
Company and the market
price
STAR
Settled according to the
COMGISTIC Ultimate controlling Open, fair and just
Purchase Raw materials 583 0.65% contract signed by both
CAPITAL company principle
parties
CO.,LTD.
Company directly
Thermaster Settled according to the
controlled by key Open, fair and just
Electronic Purchase Raw materials 1,937.6 2.15% contract signed by both
management personnel and principle
(Xiamen) Ltd. parties
their close family members
STAR
Settled according to the
COMGISTIC Ultimate controlling Open, fair and just
Sales Finished goods 2,984.51 2.97% contract signed by both
CAPITAL company principle
parties
CO.,LTD.
Under the control of the Settled according to the
TSANN KUEN Open, fair and just
same ultimate controlling Sales Finished goods 7,008.53 6.97% contract signed by both
JAPAN CO., LTD principle
company parties
Company directly
Thermaster Settled according to the
controlled by key Open, fair and just
Electronic Sales Raw materials 14.24 0.01% contract signed by both
management personnel and principle
(Xiamen) Ltd. parties
their close family members
Xiamen Tsann Under the control of the Settled according to the
Open, fair and just
Kuen Trading same ultimate controlling Sales Finished goods 0.13 0% contract signed by both
principle
Co.,Ltd. company parties
STAR Settled according to the
Ultimate controlling Acceptance of Open, fair and just
COMGISTIC Commission fee 29 100% contract signed by both
company labor service principle
CAPITAL parties
26
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
CO.,LTD.
Under the control of the Expense for repair, Settled according to the
TSANN KUEN Acceptance of Open, fair and just
same ultimate controlling exchange and 494.29 24.82% contract signed by both
JAPAN CO., LTD labor service principle
company return of goods parties
Under the control of the Settled according to the
TSANN KUEN Acceptance of Expenses for after Open, fair and just
same ultimate controlling 14.47 100% contract signed by both
USA INC labor service sale service principle
company parties
Under the control of the Settled according to the
STAR TRAVEL Acceptance of Open, fair and just
same ultimate controlling Costs of service 63.78 17.01% contract signed by both
SERVICE CORP. service principle
company parties
Star Travel Under the control of the Settled according to the
Acceptance of Open, fair and just
International Co., same ultimate controlling Costs of service 106.5 28.4% contract signed by both
service principle
Ltd. company parties
Under the control of the Settled according to the
STAR TRAVEL Rendering of Revenue from Open, fair and just
same ultimate controlling 0.28 0.07% contract signed by both
SERVICE CORP. service service principle
company parties
Star Travel Under the control of the Settled according to the
Rendering of Revenue from Open, fair and just
International Co., same ultimate controlling 45.31 10.78% contract signed by both
service service principle
Ltd. company parties
Company directly
Thermaster Settled according to the
controlled by key Rendering of Revenue from Open, fair and just
Electronic 9.44 2.25% contract signed by both
management personnel and service service principle
(Xiamen) Ltd. parties
their close family members
Xiamen Tsann Under the control of the Settled according to the
Rendering of Revenue from Open, fair and just
Kuen Trading same ultimate controlling 8.65 2.06% contract signed by both
service service principle
Co.,Ltd. company parties
Xiamen Tsann Under the control of the Settled according to the
Rendering of Open, fair and just
Kuen Trading same ultimate controlling Rental of plants 451.39 18.5% contract signed by both
service principle
Co.,Ltd. company parties
Total -- -- 13,751.12 -- -- -- --
Details of large amount of sales returns
Necessity and continuity of related-party transaction as well as reason of choosing the
Increase the Group’s efficiency of vertical division of labor, so as to complement the advantages of each other; increase the market share through the
related party (but not other transaction parties) to conduct the said transaction
27
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
advantage of related enterprises in various countries of the world.
Impacts of related-party transaction on independency of the Company
Dependant degree of the Company on related party and relevant solutions for the
dependence (if any)
As for the prediction on the total amount of routine related-party transactions to be
occurred in the reporting period by relevant types, the actual performance in the
reporting period
Explanation on related-party transaction
Related-party transactions relevant to routine operation
Selling products and providing labor services to related parties Purchasing products and receiving labor services from related parties
Related party Transaction amount (RMB Ten Proportion in same kind of Transaction amount (RMB Ten Proportion in same kind of
thousand) transactions (%) thousand) transactions (%)
STAR COMGISTIC CAPITAL CO.,LTD. 2,984.51 2.97% 583 0.65%
STAR COMGISTIC CAPITAL CO.,LTD. 0 0% 29 100%
TSANN KUEN JAPAN CO., LTD 7,008.53 6.97% 494.29 24.82%
Thermaster Electronic (Xiamen) Ltd. 14.24 0.01% 1,937.6 2.15%
Thermaster Electronic (Xiamen) Ltd. 9.44 2.25% 0 0%
STAR TRAVEL SERVICE CORP. 0.28 0.07% 63.78 17.01%
Xiamen Star International Travel Service
45.31 10.78% 106.5 28.4%
Co., Ltd.
Xiamen Tsann Kuen Trading Co.,Ltd. 0.13 0% 0 0%
Xiamen Tsann Kuen Trading Co.,Ltd. 8.65 2.06% 0 0%
Xiamen Tsann Kuen Trading Co.,Ltd. 451.39 18.5% 0 0%
TSANN KUEN USA INC 0 0% 14.47 100%
Total 10,522.48 3,228.64
Of which: the total amount of related-party transactions of the Company selling products and providing labor services to the controlling shareholder and its subsidiaries
during the reporting period stood at RMB104,988,000.
2. Related-party transactions regarding purchase and sales of assets
√Applicable □Inapplicable
28
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Reason for
significant
Assessed Influence on
Pricing Book value of difference Gains from
value of Market fair Settlement the business
Type of the Content of the principle of the transferred Transfer price between the the assets
transferred value (RMB method of the results and
Related party Relationship related-party related-party the assets (RMB (RMB Ten transfer price transfer (RMB
assets (RMB Ten related-party financial
transaction transaction related-party Ten Thousand) and the Ten
Ten Thousand) transaction status of the
transaction Thousand) book value or Thousand)
Thousand) Company
the assessed
value
Transfer According to
Sino Global equity of East the price in
Equity
Development Shareholder Sino the contract 4,717.53 4,248.18 3,981.19 3,981.19 Transfer -451.22
transfer
Co., Ltd. Development signed by both
Limited parties
Notes of related-party transactions regarding purchase and sales of assets:
On 10 Mar. 2012, Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. and Sino Global Development Limited signed the Equity Transfer Agreement, with the latter transferring
100% equity interests of East Sino Development Limited (its wholly-funded subsidiary) to the former at the price of US$ 6.30 million. On 11 Jun. 2012, Tsann Kuen
(Zhangzhou) Enterprise Co., Ltd. completed the equity registration alteration formalities regarding its acquisition of equity interests of East Sino Development. This
transaction made a business combination under the same control and East Sino Development was consolidated by the Company since the transaction was concluded. East
Sino Development achieved a net profit of RMB -4.5122 million for the reporting period, with its total assets being RMB 90.59 million, total liabilities being RMB 61.08
million and net assets being RMB 29.20 million.
For details, see the Announcement on Resolutions Made at the Second Session of the Board of Directors for 2012, Announcement on the Controlled Subsidiary Zhangzhou
Tsann Kuen Acquiring Equity Interests of East Sino Development & the Relevant Related-party Transaction Caused disclosed on Securities Times, Hong Kong Ta Kung Pao
and http://www.cninfo.com.cn on 13 Mar. 2012, as well as the Announcement on the Controlled Subsidiary Zhangzhou Tsann Kuen Completing the Equity Registration
Alteration Formalities Regarding Its Acquisition of Equity Interests of East Sino Development disclosed on Securities Times, Hong Kong Ta Kung Pao and
http://www.cninfo.com.cn on 14 Jun. 2012.
3. Significant related-party transitions with joint investments
□Applicable √Inapplicable
4. Significant credits and liabilities with related parties
√Applicable □Inapplicable
Was there any non-operating credit or liability with any related party?
29
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
√ Yes □ No
Lending funds to related parties (RMB Ten thousand) Borrowing funds from related parties (RMB Ten thousand)
Related party Relationship Interest Interest
Opening Incurred Repaid Closing Interest Opening Incurred Repaid Closing Interest
expenditur expenditu
balance amount amount balance income balance amount amount balance income
es res
Non-operational
TSANN KUEN JAPAN CO., LTD Same ultimate holding company 54.47 0
EUPA Industry Corporation Limited Shareholder 0 2.93
Hongkong Fillman investment Co.,Ltd. Shareholder 5,692.4 5,692.4
Sino Global Development Co., Ltd. Shareholder 7,379.53 7,379.53
Subtotal 13,126.4 13,074.86
Operational
STAR TRAVEL SERVICE CORP. Same ultimate holding company 0 0.28 0.28 0 3.08 63.78 66.39 0.47
TSANN KUEN JAPAN CO., LTD Same ultimate holding company 4,519.01 7,008.53 6,896.53 4,631.01 1,166.08 494.29 1,371.15 289.22
Company directly controlled by key
Thermaster Electronic (Xiamen) Ltd. management personnel and their close 3.07 23.68 25.75 1 1,446.74 1,937.6 2,382.89 1,001.45
family members
STAR COMGISTIC CAPITAL CO.,LTD. Ultimate controlling company 952.44 2,984.51 2,230.04 1,706.91 799.45 612.18 1,251.9 159.73
Xiamen Tsann Kuen Trading Co.,Ltd. Same actual controller 0 460.17 460.04 0.13 734.71 50.5 785.21
Xiamen Star International Travel Service Co., Ltd. Same ultimate holding company 5.71 45.31 43.69 7.33 44.24 106.5 121.8 28.94
TSANN KUEN USA INC Same ultimate holding company 12.96 14.47 25.32 2.11
Sino Global Development Co., Ltd. Shareholder 0 7,379.53 0 7,379.53
Hongkong Fillman investment Co.,Ltd. Shareholder 0 5,692.4 0 5,692.4
EUPA Industry Corporation Limited Same ultimate holding company 0 2.93 0 2.93
Subtotal 5,480.23 10,522.48 9,656.33 6,346.38 4,207.26 16,354.18 5,219.45 15,341.99
Total 5,480.23 10,522.48 9,656.33 6,346.38 4,207.26 16,354.18 5,219.45 15,341.99
Incurred amount of funds provided to the controlling shareholder and its subsidiaries by the
10,498.8
Company during the reporting period (RMB Ten Thousand)
Of which: non-operational incurred amount (RMB Ten Thousand)
Balance of funds lent to the controlling shareholder and its subsidiaries by the Company
6,345.38
(RMB Ten Thousand)
Of which: non-operational balance (RMB Ten Thousand)
Reason of forming the credits and liabilities with related parties Trading of goods, rendering and acceptance of service, rendering and acceptance of labor service and leasing
30
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Debt clearing situation of the credits and liabilities with related parties
Commitments made relevant to the credits and liabilities with related parties
Influence of the credits and liabilities with related parties on the business results and
financial status of the Company
Capital occupation during the report period and debt-clearing progress
□Applicable √Inapplicable
The accountability plan put forward by the Board of Directors when the Company had not completed collecting the capital occupied for non-operating purposes by the end
of the report period
□Applicable √Inapplicable
31
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
5. Other significant related-party transactions
Naught
(X) Significant contracts and execution
1. The trust, contract and lease whose profits reaching more than 10% (including 10%) of the total
profits of the Company in the report period
(1) Status of trust
□Applicable √Inapplicable
（2）Particulars about contracting
□Applicable √Inapplicable
（3）Particulars about leasing
√Applicable □Inapplicable
Involved
Influences
amount of Rental Recognitio Related-pa
Name of Status of Innitial Ending of rental
Name of the leased income n basis of rty Relationsh
contract-o leased date of date of income on
leasor assets (RMB Ten rental transaction ip
ut party assets leasing leasing the
(RMB Ten Thousand) income or not
Company
Thousand)
According
Xiamen Xiamen to the price Under the
Tsann Tsann in the control of
16 Sept. 15 Sept.
Kuen Kuen Leased 7,395.311 451.3889 contract Yes the same
2011 2014
Enterprise Trading signed by actual
Co., Ltd. Co.,Ltd. both controller
parties
Note:
2. Guarantees provided by the Company
√Applicable □Inapplicable
32
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Unit: RMB Ten Thousand
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Disclosure
Actual occurrence Guarantee
date of Amount for Actual guarantee Type of Period of Executed or
Guaranteed party date (date of for a related
relevant guarantee amount guarantee guarantee not
agreement) party or not
announcement
Tsann Kuen (Zhangzhou) One year since
South Port Electronics 4 Dec. 2010 8,000 4 Mar. 2011 0 Warranty the liability Yes No
Enterprise Co., Ltd. period expired
Tsann Kuen (Zhangzhou) One year since
South Port Electronics 23 Apr. 2011 10,000 23 Apr. 2011 0 Warranty the liability Yes No
Enterprise Co., Ltd. period expired
One year since
PT.Tsann Kuen
26 Apr. 2011 2,214 8 Jul. 2011 0 Warranty the liability Yes No
ZhangZhou Indonesia
period expired
Total actual occurred amount of
Total external guarantee line approved
0 external guarantee during the 804
during the reporting period (A1)
reporting period (A2)
Total external guarantee line that has Total actual external guarantee
been approved at the end of the reporting 20,214 balance at the end of the reporting 0
period (A3) period (A4)
Guarantees provided by the Company for its subsidiaries
Disclosure
Actual occurrence Guarantee
date of Amount for Actual guarantee Type of Period of Executed or
Guaranteed party date (date of for a related
relevant guarantee amount guarantee guarantee not
agreement) party or not
announcement
Total guarantee line approved for the Total actual occurred amount of
subsidiaries during the reporting period guarantee for the subsidiaries during
(B1) the reporting period (B2)
Total guarantee line that has been Total actual guarantee balance for
approved for the subsidiaries at the end the subsidiaries at the end of the
of the reporting period (B3) reporting period (B4)
Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)
Total actual occurred amount of
Total guarantee line approved during the
0 guarantee during the reporting 804
reporting period (A1+B1)
period (A2+B2)
Total guarantee line that has been
approved at the end of the reporting Total actual guarantee balance at the
period 20,214 0
end of the reporting period (A4+B4)
(A3+B3)
Proportion of total guarantee amount (A4+B4) to the net assets of the
Company
Of which:
Amount of guarantee for shareholders, actual controller and related parties
0
(C)
Amount of debt guarantee provided for the guaranteed party whose
0
asset-liability ratio is not less than 70% directly or indirectly (D)
Part of the amount of the total guarantee over 50% of net assets (E) 0
Total amount of the above three guarantees (C+D+E) 0
Explanation on possible bearing joint responsibility of liquidation due to
N/A
immature guarantee
Explanation on provision of guarantees for external parties in violation of the
N/A
prescribed procedure
33
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
3. Entrusted financial management
□Applicable √Inapplicable
4. Performance of significant contracts relevant to routine operation
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.
5. Other significant contracts
□Applicable √Inapplicable
(XI) Explanation on issuing corporate bonds
□Applicable √Inapplicable
(XII) Performance of commitments
1. Commitments made by the Company or shareholders holding over 5% of the Company’s shares
in the report period, or such commitments carried down into the report period
□Applicable √Inapplicable
2. The Company’s assets or projects exist profitable prediction and the report period is in such
prediction period, it states the profits from the assets or projects reaching original prediction and
relevant reasons
□Applicable √Inapplicable
34
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(XIII) Items of other comprehensive income
Unit: RMB Yuan
Items This report period Same period of last year
1. Profits/(losses) from available-for-sale financial assets
Less: Effects on income tax generating from available-for-sale
financial assets
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal 0.00 0.00
2. Interests in the investee entities’ other comprehensive income as per
0.00 0.00
equity method
Less: Effects on income tax generating from the interests in the
0.00 0.00
investee entities’ other comprehensive income as per equity method
Net amount transferred into profit and loss in the current period that
0.00 0.00
recognized into other comprehensive income in prior period
Subtotal 0.00 0.00
3. Profits/(losses) from cash flow hedging instrument 0.00 0.00
Less: Effects on income tax generating from cash flow hedging
0.00 0.00
instrument
Net amount transferred into profit and loss in the current period that
0.00 0.00
recognized into other comprehensive income in prior period
The adjustment value that is the converted initial recognition amount of
0.00 0.00
arbitrage project
Subtotal 0.00 0.00
4. Converted amount of foreign currency financial statements 1,349,983.16 1,227,157.48
Less: Net value of disposal of oversea operations that recognized into
0.00 0.00
current profit and loss
Subtotal 1,349,983.16 1,227,157.48
5. Other 0.00 0.00
Less: Effects on income tax generating from the others that included
0.00 0.00
into other comprehensive income
Net amount transferred into profit and loss in the current period that
0.00 0.00
recognized into other comprehensive income in prior period
Subtotal 0.00 0.00
Total 1,349,983.16 1,227,157.48
(XIV) Particulars about researches, visits and interviews received in this report period
Time of Way of
Place of reception Visitor type Visitor Main discussion and materials provided by the Company
reception reception
The Company’s operating situation, with no written materials
9 Jan. 2012 Company Office By phone Individual Mr. Cai
provided by the Company
The Company’s operating situation, with no written materials
29 Feb. 2012 Company Office By phone Individual Mr. Hu
provided by the Company
The Company’s operating situation, with no written materials
22 Mar. 2012 Company Office By phone Individual Mr. Li
provided by the Company
The Company’s operating situation, with no written materials
25 Apr. 2012 Company Office By phone Individual Mr. Su
provided by the Company
The Company’s operating situation, with no written materials
26 Apr. 2012 Company Office By phone Individual Mr. Yu
provided by the Company
The Company’s operating situation, with no written materials
29 Jun. 2012 Company Office By phone Individual Mr. Ye
provided by the Company
The Company’s operating situation and the influence of the main
29 Jun. 2012 Company Office By phone Individual Mr. Li board delisting system on the Company, with no written
materials provided by the Company
The Company’s operating situation and the influence of the main
29 Jun. 2012 Company Office By phone Individual Ms. Wang board delisting system on the Company, with no written
materials provided by the Company
The influence of the main board delisting system on the
2 Jul. 2012 Company Office By phone Individual Mr. Ouyang
Company, with no written materials provided by the Company
4 Jul. 2012 Company Office By phone Individual Mr. Mu The influence of the main board delisting system on the
35
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
5 Jul. 2012 Company Office By phone Individual Mr. Yang
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
9 Jul. 2012 Company Office By phone Individual Mr. Hu
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
10 Jul. 2012 Company Office By phone Individual Mr. Yang
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
10 Jul. 2012 Company Office By phone Individual Mr. Shi
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
11 Jul. 2012 Company Office By phone Individual Mr. Yu
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
11 Jul. 2012 Company Office By phone Individual Mr. Shen
Company, with no written materials provided by the Company
The Company’s operating situation and the influence of the main
12 Jul. 2012 Company Office By phone Individual Mr. Li board delisting system on the Company, with no written
materials provided by the Company
The influence of the main board delisting system on the
17 Jul. 2012 Company Office By phone Individual Mr. Qu
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
18 Jul. 2012 Company Office By phone Individual Mr. Wang
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
20 Jul. 2012 Company Office By phone Individual Mr. Li
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
23 Jul. 2012 Company Office By phone Individual Mr. Li
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
23 Jul. 2012 Company Office By phone Individual Mr. He
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
23 Jul. 2012 Company Office By phone Individual Mr. Liang
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
23 Jul. 2012 Company Office By phone Individual Mr. Chen
Company, with no written materials provided by the Company
The influence of the main board delisting system on the
23 Jul. 2012 Company Office By phone Individual Mr. Fan
Company, with no written materials provided by the Company
Field Guosen
23 May 2012 Company office Institution Operating particulars of the Company
research Securities
(XV) Particulars about engagement and disengagement of CPAs firm
Has this semi-annual report been audited?
□ Yes √ No □ Inapplicable
Whether changed to engage the CPAs firm or not？
□ Yes √ No □ Inapplicable
(XVI) Particulars about punishment and rectification order received by the Company,
its directors, supervisors, senior executives, shareholders, actual controller and acquirer
□Applicable √Inapplicable
(XVII) Explanation on other significant events
□Applicable √Inapplicable
(XVIII) Particulars about significant changes in the profitability, asset status and credit
status of the Company’s convertible bonds guarantor
(Only listed companies which issue convertible corporate bonds are required to fill the form below.)
□Applicable √Inapplicable
36
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(XIX) Index for information disclosure
Newspapers for disclosing Internet website for disclosing information
Event Publishing date
information and relevant page and the searching approach
www.cninfo.com.cn/information/companyinf
Announcement on Business Earnings Forecast for 2011 Securities Times, Ta Kung Pao 20 Jan. 2012
o.html
Announcement on Receiving the Letter of Decision on www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 4 Feb. 2012
Rectification from CSRC Xiamen Bureau o.html
Announcement on Resolutions Made at the First www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 29 Feb. 2012
Session of the Board of Directors for 2012 o.html
Announcement on Resolutions Made at the First www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 29 Feb. 2012
Session of the Supervisory Committee for 2012 o.html
Report on Rectificantion after On-site Inspection by www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 29 Feb. 2012
CSRC Xiamen Bureau o.html
Notice on Convening the First Special Shareholders’ www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 13 Mar. 2012
General Meeting for 2012 o.html
Announcement on Resolutions Made at the Second www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 13 Mar. 2012
Session of the Board of Directors for 2012 o.html
Announcement on Resolutions Made at the Second www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 13 Mar. 2012
Session of the Supervisory Committee for 2012 o.html
Announcement on Forecast of the Routine www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 13 Mar. 2012
Related-party Transactions in 2012 o.html
Special Statement on Appropriation of Listed
www.cninfo.com.cn/information/companyinf
Company’s Capital by Controlling Shareholders and 13 Mar. 2012
o.html
Other Related Parties
Work Report of Independent Director for 2011 (Ge www.cninfo.com.cn/information/companyinf
13 Mar. 2012
Xiaoping) o.html
Work Report of Independent Director for 2011（Lu www.cninfo.com.cn/information/companyinf
13 Mar. 2012
Jianxin） o.html
Work Report of Independent Director for 2011（Tu www.cninfo.com.cn/information/companyinf
13 Mar. 2012
Liandong） o.html
www.cninfo.com.cn/information/companyinf
Self-appraisal Report on Internal Control for 2011 13 Mar. 2012
o.html
Speicial Statement and Opinion of Independent
Directors on Appropriation of Listed Company’s
www.cninfo.com.cn/information/companyinf
Capital by Controlling Shareholders and Other Related 13 Mar. 2012
o.html
Parties & External Guarantees Provided by the
Company
Opinion of Independent Directors on Forecast of the www.cninfo.com.cn/information/companyinf
13 Mar. 2012
Routine Related-party Transactions for 2012 o.html
www.cninfo.com.cn/information/companyinf
Announcement on East Sino Development Limited 13 Mar. 2012
o.html
www.cninfo.com.cn/information/companyinf
Auditor’s Report (2011) 13 Mar. 2012
o.html
Announcement on the Controlled Subsidiary
Zhangzhou Tsann Kuen Acquiring Equity Interests of www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 13 Mar. 2012
East Sino Development & the Relevant Related-party o.html
Transaction
Opinion of Independent Directors on Related-party
Transaction Arising from Controlled Subsidiary www.cninfo.com.cn/information/companyinf
13 Mar. 2012
Zhangzhou Tsann Kuen Acquiring Equity Interests of o.html
East Sino Development
Opinion of Independent Directors on Reengagement of www.cninfo.com.cn/information/companyinf
13 Mar. 2012
Reanda Certified Public Accountants Co., Ltd. o.html
Opinion of Independent Directors on Self-appraisal www.cninfo.com.cn/information/companyinf
13 Mar. 2012
Report on Internal Control for 2011 o.html
Opinion of Independent Directors on the Profits www.cninfo.com.cn/information/companyinf
13 Mar. 2012
Distribution Preplan of the Company in 2011 o.html
Assessment Report on the Value of Total Shareholders’
Equities Involved in the Controlled Subsidiary www.cninfo.com.cn/information/companyinf
13 Mar. 2012
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2011 Annual Auditor’s Report 13 Mar. 2012
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37
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
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Summary of the 2011 Annual Report Securities Times, Ta Kung Pao 13 Mar. 2012
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1 Jun. 2012
(Jan.-Apr. 2012) o.html
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1 Jun. 2012
2012) o.html
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Registration Alteration Formalities Regarding Its
38
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Acquisition of Equity Interests of East Sino
Development
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Second Time)
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Zhangzhou Tsann Kuen Increasing Capital Investment www.cninfo.com.cn/information/companyinf
Securities Times, Ta Kung Pao 25 Jul. 2012
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Securities Times, Ta Kung Pao 25 Jul. 2012
Special Session of the Board of Directors for 2012 o.html
Suggestive Announcement on Risks of Possible Listing
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Termination for the Stocks of the Company (The Third Securities Times, Ta Kung Pao 25 Jul. 2012
o.html
Time)
39
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Announcement on Resignation of Staffs Representative www.cninfo.com.cn/information/companyinf
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Articles of Association (July 2012) 25 Jul. 2012
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Company’s Controlled Subsidiary Zhangzhou Tsann Securities Times, Ta Kung Pao 26 Jul. 2012
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Trading o.html
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Termination for the Stocks of the Company (The Fifth Securities Times, Ta Kung Pao 27 Jul. 2012
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Termination for the Stocks of the Company (The Securities Times, Ta Kung Pao 31 Jul. 2012
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VIII. Financial Report
(I) Auditor’s report
Has this semi-annual report been audited?
□ Yes √ No □ Inapplicable
(II) Financial statements
Consolidated statements or not?
√Yes □No □ Inapplicable
The monetary unit in the financial statements of the financial report is RMB Yuan if not specified
otherwise.
Monetary unit of notes to financial statements: RMB Yuan
40
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
1. Consolidated balance sheet
Prepared by Tsann Kuen (China) Enterprise Co., Ltd.
Unit: RMB Yuan
Item Note 30 Jun. 2012 31 Dec. 2011
Current Assets:
Monetary funds 1,030,890,983.86 706,132,122.10
Settlement reserves 0.00 0.00
Intra-group lendings 0.00 0.00
Transactional financial assets 0.00 4,636,053.22
Notes receivable 4,200,000.00 2,979,552.00
Accounts receivable 299,384,345.91 417,628,180.59
Accounts paid in advance 5,921,411.63 6,027,901.71
Premiums receivable 0.00 0.00
Reinsurance premiums receivable 0.00 0.00
Receivable reinsurance contract reserves 0.00 0.00
Interest receivable 3,801,481.77 1,646,355.63
Dividend receivable 0.00 0.00
Other accounts receivable 21,291,387.31 31,458,353.08
Financial assets purchased under agreements to resell 0.00 0.00
Inventories 286,096,896.25 319,584,892.20
Non-current assets due within 1 year 3,621,630.44 2,717,019.83
Other current assets 0.00 0.00
Total current assets 1,655,208,137.17 1,492,810,430.36
Non-current assets:
Loans by mandate and advances granted 0.00 0.00
Available-for-sale financial assets 0.00 0.00
Held-to-maturity investments 0.00 0.00
Long-term accounts receivable 46,290,436.53 49,751,452.73
Long-term equity investment 40,000.00 40,000.00
Investing property 62,037,844.18 65,585,318.46
Fixed assets 226,232,133.11 304,624,424.95
Construction in progress 11,202,400.46 11,729,197.60
Engineering materials 0.00 0.00
Disposal of fixed assets 0.00 0.00
Production biological assets 0.00 0.00
Oil-gas assets 0.00 0.00
Intangible assets 13,755,969.04 15,318,712.17
R&D expense 0.00 0.00
Goodwill 0.00 0.00
Long-term deferred expenses 8,267,583.03 6,979,767.93
Deferred income tax assets 16,881,528.44 17,031,528.72
Other non-current assets 0.00 0.00
Total of non-current assets 384,707,894.79 471,060,402.56
Total assets 2,039,916,031.96 1,963,870,832.92
Current liabilities:
Short-term borrowings 306,043,379.04 0.00
Borrowings from Central Bank 0.00 0.00
Customer bank deposits and due to banks and other financial
0.00 0.00
institutions
Intra-group borrowings 0.00 0.00
Transactional financial liabilities 2,559,589.86 0.00
Notes payable 37,615,372.93 44,434,948.83
Accounts payable 649,352,454.49 860,533,038.10
41
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Accounts received in advance 18,639,031.85 14,056,625.13
Financial assets sold for repurchase 0.00 0.00
Handling charges and commissions payable 0.00 0.00
Employee’s compensation payable 35,061,140.63 45,981,900.31
Tax payable -29,211,057.46 -13,958,946.51
Interest payable 0.00 0.00
Dividend payable 0.00 0.00
Other accounts payable 178,640,152.13 152,202,472.87
Reinsurance premiums payable 0.00 0.00
Insurance contract reserves 0.00 0.00
Payables for acting trading of securities 0.00 0.00
Payables for acting underwriting of securities 0.00 0.00
Non-current liabilities due within 1 year 0.00 0.00
Other current liabilities 0.00 0.00
Total current liabilities 1,198,700,063.47 1,103,250,038.73
Non-current liabilities:
Long-term borrowings 0.00 0.00
Bonds payable 0.00 0.00
Long-term payables 0.00 0.00
Specific payables 0.00 0.00
Projected liabilities 0.00 0.00
Deferred income tax liabilities 695,407.98 695,407.98
Other non-current liabilities 40,145,770.80 39,923,170.80
Total non-current liabilities 40,841,178.78 40,618,578.78
Total liabilities 1,239,541,242.25 1,143,868,617.51
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 1,112,350,077.00 1,112,350,077.00
Capital reserves 128,733,516.80 125,036,742.08
Less: Treasury stock 0.00 0.00
Specific reserves 0.00 0.00
Surplus reserves 0.00 0.00
Provisions for general risks 0.00 0.00
Retained profits -792,844,101.63 -773,465,250.87
Foreign exchange difference -112,961.02 -1,462,944.18
Total equity attributable to owners of the Company 448,126,531.15 462,458,624.03
Minority interests 352,248,258.56 357,543,591.38
Total owners’ (or shareholders’) equity 800,374,789.71 820,002,215.41
Total liabilities and owners’ (or shareholders’) equity 2,039,916,031.96 1,963,870,832.92
Legal representative: Jian Derong Person-in-charge of the accounting work: Chen Zongyi Chief of the accounting division: Chen Zongyi
42
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
2. Balance sheet of the Company
Unit: RMB Yuan
Item Note 30 Jun. 2012 31 Dec. 2011
Current Assets:
Monetary funds 13,264,650.77 13,757,429.84
Transactional financial assets 0.00 0.00
Notes receivable 0.00 0.00
Accounts receivable 0.00 0.00
Accounts paid in advance 77,380.97 89,677.02
Interest receivable 0.00 413.89
Dividend receivable 0.00 0.00
Other accounts receivable 303,798.33 80,906.33
Inventories 0.00 0.00
Non-current assets due within 1
0.00 0.00
year
Other current assets 0.00 0.00
Total current assets 13,645,830.07 13,928,427.08
Non-current assets:
Available-for-sale financial assets 0.00 0.00
Held-to-maturity investments 0.00 0.00
Long-term accounts receivable 0.00 0.00
Long-term equity investment 990,854,030.83 990,854,030.83
Investing property 56,313,672.26 58,377,827.95
Fixed assets 2,583,168.03 3,521,310.33
Construction in progress 0.00 1,278,000.00
Engineering materials 0.00 0.00
Disposal of fixed assets 0.00 0.00
Production biological assets
Oil-gas assets
Intangible assets 968,432.71 1,204,109.34
R&D expense 0.00 0.00
Goodwill 0.00 0.00
Long-term deferred expenses 1,374,893.02 113,042.04
Deferred income tax assets 0.00 0.00
Other non-current assets 0.00 0.00
Total of non-current assets 1,052,094,196.85 1,055,348,320.49
Total assets 1,065,740,026.92 1,069,276,747.57
Current liabilities:
Short-term borrowings 0.00 0.00
Transactional financial liabilities 0.00 0.00
Notes payable 0.00 0.00
Accounts payable 102,499.51 59,885.95
Accounts received in advance 30,000.00 0.00
Employee’s compensation
138,972.16 168,972.16
payable
Tax payable 1,781,491.60 1,620,858.22
Interest payable 0.00 0.00
43
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Dividend payable 0.00 0.00
Other accounts payable 601,828,057.39 606,206,909.07
Non-current liabilities due within
0.00 0.00
1 year
Other current liabilities 0.00 0.00
Total current liabilities 603,881,020.66 608,056,625.40
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Projected liabilities
Deferred income tax liabilities 0.00
Other non-current liabilities 0.00
Total non-current liabilities 0.00 0.00
Total liabilities 603,881,020.66 608,056,625.40
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 1,112,350,077.00 1,112,350,077.00
Capital reserves 123,485,181.40 123,485,181.40
Less: Treasury stock
Specific reserves
Surplus reserves
Provision for general risks
Retained profits -773,976,252.14 -774,615,136.23
Foreign exchange difference
Total owners’ (or shareholders’)
461,859,006.26 461,220,122.17
equity
Total liabilities and owners’ (or
1,065,740,026.92 1,069,276,747.57
shareholders’) equity
44
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
3. Consolidated income statement
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total operating revenues 1,069,083,488.49 1,372,466,731.24
Including: Sales income 1,069,083,488.49 1,372,466,731.24
Interest income 0.00 0.00
Premium income 0.00 0.00
Handling charge and commission income 0.00 0.00
II. Total operating cost 959,020,421.44 1,203,452,601.51
Including: Cost of sales 957,074,222.04 1,195,385,127.12
Interest expenses 0.00 0.00
Handling charge and commission expenses 0.00 0.00
Surrenders 0.00 0.00
Net claims paid 0.00 0.00
Net amount withdrawn for the insurance contract reserve 0.00 0.00
Expenditure on policy dividends 0.00 0.00
Reinsurance premium 0.00 0.00
Taxes and associate charges 1,946,199.40 8,067,474.39
Selling and distribution expenses 50,929,006.43 52,001,814.50
Administrative expenses 91,512,870.63 106,472,276.38
Financial expenses -11,851,591.82 2,785,127.84
Asset impairment loss 4,391,503.91 77,609.69
Add: Gain/(loss) from change in fair value (“-” means loss) -7,195,643.08 13,795,033.05
Gain/(loss) from investment (“-” means loss) 5,118,543.74 5,306,581.31
Including: share of profits in associates and joint ventures 0.00 0.00
Foreign exchange gains (“-” means loss) 0.00 0.00
III. Business profit (“-” means loss) -26,995,821.44 26,778,915.68
Add: non-operating income 2,711,575.32 5,317,717.15
Less: non-operating expense 1,450,451.43 714,028.19
Including: loss from non-current asset disposal 1,125.22 36,996.37
IV. Total profit (“-” means loss) -25,734,697.55 31,382,604.64
Less: Income tax expense 158,701.37 3,524,717.27
V. Net profit (“-” means loss) -25,893,398.92 27,857,887.37
Including: Net profit achieved by combined parties before
-4,512,158.51 0.00
the combinations
Attributable to owners of the Company -19,378,850.76 19,726,360.04
Minority shareholders’ income -6,514,548.16 8,131,527.33
VI. Earnings per share -- --
(I) Basic earnings per share -0.02 0.02
(II) Diluted earnings per share -0.02 0.02
Ⅶ. Other comprehensive incomes 1,349,983.16 1,227,157.48
Ⅷ. Total comprehensive incomes -24,543,415.76 29,085,044.85
Attributable to owners of the Company -18,028,867.60 20,953,517.52
Attributable to minority shareholders -6,514,548.16 8,131,527.33
Where business mergers under the same control occurred in this report period, the net profit achieved by the merged parties
before the business mergers was RMB -4,512,158.51.
Legal representative: Jian Derong Person-in-charge of the accounting work: Chen Zongyi Chief of the accounting division: Chen Zongyi
45
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
4. Income statement of the Company
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total sales 5,678,593.69 1,176,065.20
Less: cost of sales 2,575,647.75 959,931.54
Business taxes and surcharges 332,042.36 65,289.66
Distribution expenses
Administrative expenses 2,473,013.13 3,942,983.19
Financial costs -19,653.17 -184,015.61
Impairment loss -613.09 1,166.52
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
7,062.00 67,732,295.69
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) 325,218.71 64,123,005.59
Add: non-business income 313,665.38 160,023.14
Less: non-business expense 90,000.00
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) 638,884.09 64,193,028.73
Less: income tax expense
IV. Net profit (“-” means loss) 638,884.09 64,193,028.73
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income
VII. Total comprehensive income 638,884.09 64,193,028.73
46
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
5. Consolidated cash flow statement
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of
1,208,827,945.74 1,340,362,580.91
commodities and rendering of service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of tradable
financial assets
Cash received from interest, handling
charges and commissions
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received 150,547,648.48 121,832,937.70
Other cash received relating to
40,574,661.12 35,612,135.20
operating activities
Subtotal of cash inflows from operating
1,399,950,255.34 1,497,807,653.81
activities
Cash paid for goods and services 1,124,296,590.20 1,339,393,345.70
Net increase of customer lendings
and advances
Net increase of funds deposited in the
central bank and amount due from
banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 131,793,664.82 134,319,385.01
Various taxes paid 11,321,878.97 11,463,299.50
Other cash payment relating to
179,103,720.72 142,709,977.97
operating activities
Subtotal of cash outflows from
1,446,515,854.71 1,627,886,008.18
operating activities
Net cash flows from operating activities -46,565,599.37 -130,078,354.37
II. Cash flows from investing activities:
Cash received from withdrawal of
0.00 0.00
investments
Cash received from return on 5,118,543.74 5,306,581.31
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
investments
Net cash received from disposal of
fixed assets, intangible assets and other 5,533,100.10 3,991,626.41
long-term assets
Net cash received from disposal of
0.00 202,824.06
subsidiaries or other business units
Other cash received relating to
0.00 0.00
investing activities
Subtotal of cash inflows from
10,651,643.84 9,501,031.78
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 23,317,489.62 53,749,217.65
assets
Cash paid for investment 0.00 292,120.68
Net increase of pledged loans
Net cash paid to acquire subsidiaries
39,799,620.00
and other business units
Other cash payments relating to
0.00 0.00
investing activities
Subtotal of cash outflows from
63,117,109.62 54,041,338.33
investing activities
Net cash flows from investing activities -52,465,465.78 -44,540,306.55
III. Cash Flows from Financing
Activities:
Cash received from capital
0.00 44,098,368.60
contributions
Including: Cash received from
minority shareholder investments by 0.00 0.00
subsidiaries
Cash received from borrowings 368,641,168.03 0.00
Cash received from issuance of
bonds
Other cash received relating to
244,582,470.90 131,431,000.00
financing activities
Subtotal of cash inflows from financing
613,223,638.93 175,529,368.60
activities
Repayment of borrowings 63,355,000.00 0.00
Cash paid for interest expenses and
1,012,364.65 22,549,593.07
distribution of dividends or profit
Including: dividends or profit paid
0.00 22,549,593.07
by subsidiaries to minority shareholders
Other cash payments relating to
125,574,000.00
financing activities
Sub-total of cash outflows from
189,941,364.65 22,549,593.07
financing activities
Net cash flows from financing activities 423,282,274.28 152,979,775.53
IV. Effect of foreign exchange rate
507,652.63 -4,317,306.12
changes on cash and cash equivalents
V. Net increase in cash and cash
324,758,861.76 -25,956,191.51
equivalents
Add: Opening balance of cash and
706,132,122.10 628,047,361.97
cash equivalents
VI. Closing balance of cash and cash
1,030,890,983.86 602,091,170.46
equivalents
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
6. Cash flow statement of the Company
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service
Tax refunds received 15,060.94
Other cash received relating to operating activities 24,034,081.26 19,050,645.52
Subtotal of cash inflows from operating activities 24,034,081.26 19,065,706.46
Cash paid for goods and services
Cash paid to and for employees 16,363,888.64 17,318,260.05
Various taxes paid 1,024,193.98 777,047.22
Other cash payment relating to operating activities 2,245,458.61 2,801,662.78
Subtotal of cash outflows from operating activities 19,633,541.23 20,896,970.05
Net cash flows from operating activities 4,400,540.03 -1,831,263.59
II. Cash flows from investing activities:
Cash received from retraction of investments 0.00 0.00
Cash received from return on investments 7,062.00 67,732,295.69
Net cash received from disposal of fixed assets, intangible assets and other long-term assets 180,000.00 0.00
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 187,062.00 67,732,295.69
Cash paid to acquire fixed assets, intangible assets and other long-term assets 99,400.00 214,500.00
Cash paid for investment 0.00 0.00
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 99,400.00 214,500.00
Net cash flows from investing activities 87,662.00 67,517,795.69
III. Cash Flows from Financing Activities:
Cash received from capital contributions 0.00 0.00
Cash received from borrowings 0.00 0.00
Cash received from issuance of bonds 0.00 0.00
Other cash received relating to financing activities 0.00 5,000,000.00
Subtotal of cash inflows from financing activities 0.00 5,000,000.00
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or profit
Other cash payments relating to financing activities 5,000,000.00 55,500,000.00
Sub-total of cash outflows from financing activities 5,000,000.00 55,500,000.00
Net cash flows from financing activities -5,000,000.00 -50,500,000.00
IV. Effect of foreign exchange rate changes on cash and cash equivalents 19,018.90 -421.00
V. Net increase in cash and cash equivalents -492,779.07 15,186,111.10
Add: Opening balance of cash and cash equivalents 13,757,429.84 904,966.64
VI. Closing balance of cash and cash equivalents 13,264,650.77 16,091,077.74
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
7. Consolidated statement of changes in owners’ equity
Reporting period
Unit: RMB Yuan
Reporting period
Equity attributable to owners of the Company
Item Total owners’
Paid-up capital (or Less: Specific Surplus General Foreign Minority interests
Capital reserve treasury risk Retained profit exchange equity
share capital) stock reserve reserve reserve differences
I. Balance at the end of the previous year 1,112,350,077.00 125,036,742.08 -773,465,250.87 -1,462,944.18 357,543,591.38 820,002,215.41
Add: change of accounting policy
Correction of errors in previous periods
Other
II. Balance at the beginning of the year 1,112,350,077.00 125,036,742.08 -773,465,250.87 -1,462,944.18 357,543,591.38 820,002,215.41
III. Increase/ decrease of amount in the year (“-” means decrease) 0.00 3,696,774.72 0.00 0.00 0.00 0.00 -19,378,850.76 1,349,983.16 -5,295,332.82 -19,627,425.70
(I) Net profit -19,378,850.76 -6,514,548.16 -25,893,398.92
(II) Other comprehensive incomes 1,349,983.16 1,349,983.16
Subtotal of (I) and (II) 0.00 0.00 0.00 0.00 0.00 0.00 -19,378,850.76 1,349,983.16 -6,514,548.16 -24,543,415.76
(III) Capital paid in and reduced by owners 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Capital paid in by owners 0.00
2. Amounts of share-based payments recognized in owners’ equity 0.00
3. Others 0.00
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -6,715,021.80 -6,715,021.80
1. Appropriations to surplus reserves 0.00
2. Appropriations to general risk provisions 0.00
3. Appropriations to owners (or shareholders) -6,715,021.80 -6,715,021.80
4. Other 0.00
(V) Internal carry-forward of owners’ equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. New increase of capital (or share capital) from capital public reserves 0.00
2. New increase of capital (or share capital) from surplus reserves 0.00
3. Surplus reserves for making up losses 0.00
4. Other 0.00
(Ⅵ) Specific reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawn for the period 0.00
2. Used in the period 0.00
(Ⅶ) Other 3,696,774.72 7,934,237.14 11,631,011.86
IV. Closing balance 1,112,350,077.00 128,733,516.80 0.00 0.00 0.00 0.00 -792,844,101.63 -112,961.02 352,248,258.56 800,374,789.71
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Last year
Unit: RMB Yuan
Last year
Equity attributable to owners of the Company
Item Minority Total owners’
General
Paid-up capital Less: treasury Specific Surplus Foreign exchange interests equity
Capital reserve risk Retained profit
(or share capital) stock reserve reserve differences
reserve
I. Balance at the end of the previous year 1,112,350,077.00 125,041,633.17 -776,034,082.27 -119,719.78 377,128,253.57 838,366,161.69
Add: retrospective adjustments due to business combinations under the same
control
Add: change of accounting policy
Correction of errors in previous periods
Other
II. Balance at the beginning of the year 1,112,350,077.00 125,041,633.17 -776,034,082.27 -119,719.78 377,128,253.57 838,366,161.69
III. Increase/ decrease of amount in the year (“-” means decrease) -4,891.09 2,568,831.40 -1,343,224.40 -19,584,662.19 -18,363,946.28
(I) Net profit 2,568,831.40 2,627,855.28 5,196,686.68
(II) Other comprehensive incomes -1,343,224.40 -30,231.18 -1,373,455.58
Subtotal of (I) and (II) 0.00 2,568,831.40 -1,343,224.40 2,597,624.10 3,823,231.10
(III) Capital paid in and reduced by owners 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 387,754.52 387,754.52
1. Capital paid in by owners 387,754.52 387,754.52
2. Amounts of share-based payments recognized in owners’ equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -22,574,931.90 -22,574,931.90
1. Appropriations to surplus reserves
2. Appropriations to general risk provisions
3. Appropriations to owners (or shareholders) -22,574,931.90 -22,574,931.90
4. Other 0.00
(V) Internal carry-forward of owners’ equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. New increase of capital (or share capital) from capital public reserves
2. New increase of capital (or share capital) from surplus reserves
3. Surplus reserves for making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other -4,891.09 4,891.09 0.00
IV. Closing balance 1,112,350,077.00 125,036,742.08 -773,465,250.87 -1,462,944.18 357,543,591.38 820,002,215.41
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
8. Statement of changes in owners’ equity of the Company
Reporting period
Unit: RMB Yuan
Reporting period
Item Paid-up capital (or
share capital) Capital reserve Less: treasury stock Specific reserve Surplus reserve General risk reserve Retained profit Total owners’ equity
I. Balance at the end of the previous year 1,112,350,077.00 123,485,181.40 -774,615,136.23 461,220,122.17
Add: change of accounting policy 0.00
Correction of errors in previous periods 0.00
Other 0.00
II. Balance at the beginning of the year 1,112,350,077.00 123,485,181.40 0.00 0.00 0.00 0.00 -774,615,136.23 461,220,122.17
III. Increase/ decrease of amount in the year (“-” means 0.00 0.00 0.00 0.00 0.00 0.00 638,884.09 638,884.09
decrease)
(I) Net profit 638,884.09 638,884.09
(II) Other comprehensive incomes 0.00
Subtotal of (I) and (II) 0.00 0.00 0.00 0.00 0.00 0.00 638,884.09 638,884.09
(III) Capital paid in and reduced by owners 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Capital paid in by owners 0.00
2. Amounts of share-based payments recognized in 0.00
owners’ equity
3. Others 0.00
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Appropriations to surplus reserves 0.00
2. Appropriations to general risk provisions 0.00
3. Appropriations to owners (or shareholders) 0.00
4. Other 0.00
(V) Internal carry-forward of owners’ equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. New increase of capital (or share capital) from capital 0.00
public reserves
2. New increase of capital (or share capital) from surplus 0.00
reserves
3. Surplus reserves for making up losses 0.00
4. Other 0.00
(Ⅵ) Specific reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawn for the period 0.00
2. Used in the period 0.00
(Ⅶ) Other 0.00
IV. Closing balance 1,112,350,077.00 123,485,181.40 0.00 0.00 0.00 0.00 -773,976,252.14 461,859,006.26
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Last year
Unit: RMB Yuan
Last year
Item Paid-up capital (or
share capital) Capital reserve Less: treasury stock Specific reserve Surplus reserve General risk reserve Retained profit Total owners’ equity
I. Balance at the end of the previous year 1,112,350,077.00 123,485,181.40 -837,207,358.72 398,627,899.68
Add: change of accounting policy
Correction of errors in previous periods
Other
II. Balance at the beginning of the year 1,112,350,077.00 123,485,181.40 -837,207,358.72 398,627,899.68
III. Increase/ decrease of amount in the year (“-” means 62,592,222.49 62,592,222.49
decrease)
(I) Net profit 62,592,222.49 62,592,222.49
(II) Other comprehensive incomes
Subtotal of (I) and (II) 62,592,222.49 62,592,222.49
(III) Capital paid in and reduced by owners 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Capital paid in by owners
2. Amounts of share-based payments recognized in
owners’ equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Appropriations to surplus reserves
2. Appropriations to general risk provisions
3. Appropriations to owners (or shareholders)
4. Other
(V) Internal carry-forward of owners’ equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. New increase of capital (or share capital) from capital
public reserves
2. New increase of capital (or share capital) from surplus
reserves
3. Surplus reserves for making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
IV. Closing balance 1,112,350,077.00 123,485,181.40 -774,615,136.23 461,220,122.17
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(III) Company Profile
1. History
Tsann Kuen (China) Enterprise Co., Ltd. (hereafter “the Company or TKC”) was established in the
People’s Republic of China (“the PRC”) in 1988 as a wholly owned foreign investment enterprise, the
Company named in Tsann Kuen China (Xiamen) Ltd. firstly, invested by the Fordchee (Hongkong) Co.,
Ltd., EUPA Industry Corporation Limited and Hongkong Fillman investment Co.,Ltd.. On 16 February
1993, with the approval of the Ministry of Foreign Trade and Economic Co-operation, the Company was
reorganized into an incorporated company and was renamed as Tsann Kuen (China) Enterprise Co., Ltd. In
June 1993, the Company issued 40,000,000 new shares pursuant to an international placing and public
offer and these new shares (“B shares”) were then listed on the Shenzhen Stock Exchange on 30 June 1993.
Until 30 June 2012, the Company’s share capital is CNY 1,112,350,077, B shares among the total shares
issued on the Shenzhen Stock Exchange.
Follow The Ministry of Commerce of the People’s Republic of China approved （The No. [2005]3107
《Agreed in principle to the Ministry of Commerce on Tsann Kuen (China) Enterprise Co., Ltd. shares
traded sponsor of the approval》）, On December 6, 2006, the Company received the [2006] No.266 file
《The notice of Tsann Kuen (China) Enterprise Co., Ltd concerning the approval of non-listed foreign
shares traded 》 from China Securities Regulatory Commission. The China Securities Regulatory
Commission agreed 700,476,830 unlisted shares (account for 62.97% of the share capital) hold by the
Company’s shareholders, EUPA Industry Corporation Limited, Fordchee Development Limited and
Fillman Investment Limited to transfer into B shares. In November 29, 2007 these B shares could be listed
and exercised on Shenzhen Stock Exchange. Up to 30 June 2012, total B shares hold by the three legal
shareholders (EUPA Industry Corporation Limited, Fordchee Development Limited and Fillman
Investment Limited) are 505,175,060 shares.( account for 45.42% of the share capital).
Legal representative: Jian, Derong
Place of registration: No.88 Xinglong Road, Huli Industrial District, Xiamen, Fujian Province
The parent: Star Comgistic Capital Co. Ltd.
2. Industry
The Company operates within the electrical machinery and equipment manufacturing industry.
3. Scope of business
The approved business scope: the main business is to develop, manufacture and sell household appliances,
electronics, light industrial products, modern office supplies. Those subsidiary’s main business is to
manufacture household appliances, electronics, light industrial products, sell products by wholesale,
distribution appliances, communication equipment, electrical equipment, office equipment, computer
accessories, general merchandise and food; Design, manufacture and sell Precision (Punching) Die,
Precision Mold Cavity, and Model Standard Unit, as well as engaged in the research and development of
those products.
4. Main products
The Company’s main products are: Household electrical appliance.
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
5. Explanation on changes of main business, significant changes of equities, significant acquisition
and reorganization occurred during the reporting period
During the reporting period, main business of the Company remained unchanged, and no significant
acquisition or reorganization occurred.
(Ⅳ) Main accounting policies, accounting estimates and corrections of prior accounting errors
1. Basis for preparation of the financial statements
The financial statements are prepared on the basis of going concern, with reference to the actual
occurrence of transactions and events, and in accordance with the Enterprise Accounting Standards of
China issued by Ministry of Finance on 15 Feb. 2006, as well as based on those accounting policies and
accounting estimates that described in Note II.
2. Declaration of compliance with the Enterprise Accounting Standards of China
The financial statements of (the Group and) the Company have been prepared in accordance with the
Enterprise Accounting Standards of China and present truly, fairly and completely, in all material respects,
the financial position of (the Group and) the Company as at 30 June 2012, the performance, the cash flows
and other relevant information of (the Group and) the Company for the six months then ended.
3. Accounting year
The accounting year adopted by the Company is the calendar year (ie. from 1 January to 31 December).
4. Functional currency
The functional currency of the Company is the Renminbi (CNY).
Functional currency of overseas subsidiaries:
The overseas subsidiaries adopt USD, HKD and IDR as the functional currencies, and translate them into
CNY when preparing the financial statements.
5. Measurement method for the business combination under the same control and business
combination not under the same control
(1) Business combination under the same control
Identifiable assets acquired and liabilities assumed through business combination of an entity under
common control are measured at their carrying amounts in the acquiree’ account as at the combination date.
The excess of the consideration for combination over the net identifiable assets acquired as at the
combination date is debited to capital reserves, and to retained earnings where capital reserves are
insufficient.
(2) Business combination not under the same control
Identifiable assets acquired and liabilities assumed through business combination of an entity not under
common control are measured at their fair values as at the combination date. Goodwill as of the
combination date is recognised and measured as the excess of the consideration for combination over the
net identifiable assets acquired as at the combination date. If the net identifiable assets acquired as at the
combination date exceeds the consideration for combination, the excess of the consideration for
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
combination over the net identifiable assets acquired as at the combination date, after the assessment of the
fair value of the net identifiable assets acquired as at the combination date, is recognised as a gain through
profit or loss for the reporting period in which the combination occurred.
6. Preparation methods for consolidated financial statements
(1) Preparation methods for consolidated financial statements
1) Determination of the consolidated scope
The consolidated financial statements are prepared in accordance with CAS 33 – Consolidated Financial
Statements issued on February 2006. The scope of consolidated financial statements, determined on the
basis of control existence. The consolidated financial statements consolidate separate financial statements
of the parent company and subsidiaries and entities for specific purposes directly or indirectly controlled
by the parent company. Control exists is when the parent company has power to govern the financial and
operating policies of an entity and is able to obtain economic benefits from the entity’s operation.
If it is objectively evidential that the parent company has no control over a subsidiary, the subsidiary is
excluded from consolidation.
(2) Acquisition and disposal the shares of subsidiaries
The transaction date of acquisition or disposal of share of subsidiary is the date on which the risks and
economic benefits associated with the transferred share is transferred to the transferee. The post-acquisition
or pre-disposal performance and cash flows of a subsidiary acquired or disposed through business
combination not under common control are adequately consolidated in the consolidated statement of
comprehensive income and the consolidated statement of cash flows. The performance and cash flows for
the current reporting period of a subsidiary acquired through business combination under common control
during the current reporting period has consolidated in the consolidated statement of comprehensive
income and the consolidated statement of cash flows; and, the comparables of the consolidated financial
statements has adjusted accordingly.
If the Company acquires minority equity shares of subsidiaries, thus hold the long-term equity investment,
on the date of prepare consolidation statement, the difference between the value of the new long-term
equity investment and the value of subsidiary’s net assets enjoyed by proportion of shareholdings(begin
with acquired date or combination date), shall be adjusted to capital reserve, if the capital reserve is not
sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
(3) Uniform accounting policies and accounting period
Where the accounting policies and accounting period of a subsidiary are different from those of the parent
company, the separate financial statements of the subsidiary are adjusted using the accounting policies and
accounting period adopted by the parent company before consolidation. The separate financial statements
of a subsidiary acquired through business combination not under common control are adjusted to reflect
the fair values of the identifiable assets, liabilities and contingent liabilities of the subsidiary as at the
combination date before consolidation.
(4) Consolidation method
During the preparation of the consolidated financial statements, intra-group balances and transactions are
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
eliminated.
The net identifiable assets of subsidiaries attributable to minority interest of subsidiaries are separately
presented in the consolidated financial statements.
(2) As for the event about purchasing and then selling (or selling and then purchasing) equities of the same
subsidiary, the Company shall disclose relevant accounting treatment methods.
Naught
7. Recognition standard for cash and cash equivalents
Cash and cash equivalents include cash in hand, demand deposits and short-term and highly liquid
investments and which are readily convertible to known amounts of cash and are subject to an insignificant
risk of changes in value.
8. Foreign currency businesses and translation of foreign currency financial statements
(1) Foreign currency business
Transactions denominated in foreign currencies (currencies other than the functional currency) are
accounted for in the functional currency using the transaction-date spot exchange rates (the middle rates
quoted by the People’s Bank of China; hereafter, the same applies).
Monetary assets held on a balance sheet date denominated in foreign currencies are translated into the
functional currency using the balance-sheet-date spot exchange rates; differences in value arising from
differences between the transaction-date spot exchange rates and the balance-sheet-date spot exchange
rates are accounted for through profit or loss for the reporting period ended on that balance sheet date.
Non-monetary assets held and liabilities outstanding on a balance sheet date measured using the historical
cost convention is translated into the functional currency using the transaction-date spot exchange rates.
Non-monetary assets held and liabilities outstanding on a balance sheet date measured at fair value are
translated into the functional currency using the spot exchange rates prevailing on the dates of fair value
assessments; differences in value arising from differences between the transaction-date spot exchange rates
and the assessment-date spot exchange rates are accounted for through profit or loss for the reporting
period during which the assessments occurred.
2) Translation of foreign currency financial statements
① Elements of assets and liabilities of financial statements denominated in foreign currencies are
translated into the functional currency using the balance-sheet-date spot exchange rates; elements of
owner’s equity of financial statements denominated in foreign currencies, except undistributed profit, are
translated into the functional currencies using the transaction-dates spot exchange rates.
② Elements of income and expenses of financial statements denominated in foreign currencies are
translated into the functional currency using the transaction-date spot exchange rates.
Foreign exchange differences arising from treatments described in the above paragraph are separately
presented in the financial statements as an element of owners’ equity.
③ Cash flows denominated in foreign currencies are translated into the functional currency using the
transaction-date spot exchange rates. The impact of changes in exchange rates on cash flows is separately
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
presented in the statement of cash flows.
9 Financial instruments
Financial assets, according to their purposes of investment and economic substance, are classified into fair
value through profit or loss, held-to-maturity investments, loans and receivables, and available-for-sale
financial assets four categories.
(1) Classification of financial instruments
Financial liabilities, according to their economic substance, are classified into fair value through profit or
loss and others.
① Financial assets or financial liabilities at fair value through profit or loss: including held for trading
financial assets or financial liabilities and designated by the Company as at fair value through profit or
loss.
A financial asset or financial liability is classified as held for trading if it is:
a. Acquired or incurred principally for the purpose of selling or repurchasing it in the near term; or
b. Part of a portfolio of identified financial instruments that are managed together and for which there is
evidence of a recent actual pattern of short-term profit-taking; or
c. A derivative (except for a derivative that is a designated and effective hedging instrument, a derivative
of financial guarantee contract, a derivative that settle by equity instrument, which the price of instrument
could not be quoted in active market and the fair value could not measure reasonably).
A financial asset or financial liability is classified as designated fair value through profit or loss if it is:
a. The designation can be eliminated or significantly reduced the inconsistent situation or relate profit
and loss cause by different measurement basis of financial assets and financial liabilities; or
b. Company risk management or investment strategy has been enshrined in a formal written document
that the financial assets portfolio, the financial liabilities portfolio, or the financial assets and financial
liabilities portfolio are management in fair value-based and evaluation and report to key management
person.
② Held-to-maturity investments: are non-derivative financial assets with fixed or determinable payments
and fixed maturity that company has the positive intention and ability to hold to maturity. Mainly include
the Company's management has a clear intention and ability to hold to maturity of fixed-rate national
bonds, floating-rate corporate bonds.
③ Receivables: are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. Receivables of the Company mainly refer to the Company's sales of goods or
rendering of services to form the accounts receivable and other receivables.
④ Available-for-sale financial assets: are those non-derivative financial assets that are designated as
available for sale at initial recognized, or those financial assets are not measured in fair value based and
through to profit and loss, or loans and receivables, or held-to-maturity investments.
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⑤ Other financial liabilities: financial liabilities not divided into measurement in fair value base and
through into profit and loss account.
(2) Recognition basis and measurements for financial instruments
The Company’s financial asset or financial liability is recognized at its fair value initially. For financial
assets or financial liabilities at fair value through profit or loss, relevant transaction costs that are directly
attributable to current profit and loss; for other types of financial assets or financial liabilities, transaction
costs related to the amount included in the initial confirmation cost.
Subsequent measurement of financial assets and financial liabilities:
① Financial assets or financial liabilities at fair value through profit or loss measured at its fair value, at
balance sheet date, the changed difference of fair value are accounted for profit and loss in current period.
② Held-to-maturity investments, which shall be measured at amortized cost using the effective interest
method, the profit or loss of termination confirmation, impairment or amortization included in the profit
and loss account.
③ Loans and receivables, which shall be measured at amortized cost using the effective interest method,
the profit or loss from termination confirmation, impairment or amortization included in the profit and loss
account.
④ Available-for-sale financial assets, are measured with fair value, any changes of fair value of
available-for-sale financial assets at the end of period are accounted for capital reserve (other capital
reserve). Disposal of available-for-sale financial assets, the difference between consideration received and
carrying value of the financial assets included into investment profit or loss account; at the same time, turn
out the original cumulative amount of fair value change of corresponding part within the equity, included
into investment profit or loss account. The impairment losses and Exchange differences of foreign
monetary financial assets including into current profit and loss. Interest received and cash dividends
received during the hold period are recognized as investment income.
⑤ Other financial liabilities, together with the equity instrument that price not be quoted in active market
and the fair value could not measure reasonably measured, as well as the subsequent measurement should
according to the cost of derivative financial liabilities.
A financial guarantee contracts not classified into financial liabilities designated at fair value with changes
in fair value accounted through profit for loss for the relevant reporting period or a deep-discounted loan
not classified into financial liabilities designated at fair value with changes in fair value accounted through
profit for loss for the relevant reporting period is subsequently measured at the higher of the amount
determined by CAS 13 – Contingencies and the residual amount after deducting the cumulative
amortisation determined by CAS 14 – Revenue from the amount upon the initial recognition.
Other financial liabilities adopt the effective interest method, subsequent measured by amortization cost,
recognized the profits and losses by termination confirmation or amortization to current profit and loss
account.
⑥ Fair value: It’s the amount for which an asset could be exchanged or a liability settled, between
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knowledgeable, willing parties in an arm’s length transaction. In a fair deal, the transaction should the two
sides are continuing operations enterprises, do not intend to carry out the liquidation or a major reduction
in scale of operation, or under adverse conditions is still trading. The existence of an active market of
financial assets or financial liabilities, the quotation within the active market should be used to determine
its fair value. If there is no active market, company should adopt valuation techniques to determine the fair
value.
⑦ The amortized cost of a financial asset or financial liability： it’s the amount at which the financial
asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the
cumulative amortization using the effective interest method of any difference between that initial
recognized amount and the maturity date amount, and minus any reduction for impairment or
unrecoverable.
⑧ The effective interest method: It’s a method of using effective interest calculating the amortized cost of
a financial asset or a financial liability (or group of financial assets or financial liabilities) and of allocating
the interest income or interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash flows through the expected life of the financial instrument or, when
appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. Then
calculating the effective interest rate, company shall estimate cash flows considering all contractual terms
of the financial instrument (for example, prepayment, call and similar options) but shall not consider future
credit losses.
(3) Recognition basis and measurement of financial asset transfers
The financial assets have been transferred, and the ownership of the risks and rewards of financial assets
transferred to other party;
The financial assets have been transferred, but the Company neither transferred the ownership of the
risks and rewards of financial assets, nor retained , and gives up control of the financial assets.
The consideration received from the transfer, and the accumulative amount of the changes of the fair value
originally recorded in the shareholders’ equities.
(4) De-recognition of financial liabilities
① Derecognize financial asset if, and only if, meets one of the following three conditions:
a. terminate the contractual rights of cash flows from the financial asset;
b. the financial assets have been transferred, and the ownership of the risks and rewards of financial
assets transferred to other party;
c. the financial assets have been transferred, but the Company neither transferred the ownership of the
risks and rewards of financial assets, nor retained , and gives up control of the financial assets.
② When termination conditions of entire transferred assets has been satisfied, the differences between the
amounts of following items shall be recognised in the current period profits and losses account:
a. The carrying value of transferred financial assets;
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b. The consideration received from the transfer, and the accumulative amount of the changes of the fair
value originally recorded in the shareholders’ equities.
③ If the transfer of partial financial assets satisfies the conditions of derecognize, the entire book value of
the transferred financial asset shall apportion, between the portion whose derecognize and the recognized
portion (under such circumstance, the service asset retained shall be deemed as a portion of financial asset
whose derecognize), be apportioned according to their respective relative fair value, and the difference
between the amounts of the following two items shall be accounted for the profits and losses of the current
period .
a. The portion of carrying value derecognized;
b. The consideration received from the transfer, and the accumulative amount of the changes of the fair
value originally recorded in the shareholders’ equities.
④ If the Company fails to satisfy the conditions of derecognize for transferred financial assets, it shall
continue to recognize the entire financial assets to be transferred and shall recognize the consideration it
receives as a financial liability. For those financial assets transfer adopt continuing involvement method,
the Company should recognize one financial asset and one financial liability, according to the extent of the
transferred financial assets of continuing involvement.
(5) Recognition method of fair values of financial assets and liabilities
The "fair value" refers to the amount, at which both parties to a transaction who are familiar with the
condition exchange their assets or clear off their debts under fair conditions. In a fair transaction, both
parties to it shall be enterprises in continuous operation, and do not plan or do not need to carry out any
liquidation, significantly reduce their operational scale or carry out transactions notwithstanding the
unfavorable conditions they face. As for the financial assets or financial liabilities for which there is an
active market, the quoted prices in the active market shall be used to determine the fair values thereof.
Where there is no active market for a financial instrument, the enterprise concerned shall adopt value
appraisal techniques to determine its fair value.
(6) Withdrawal of impairment provision for financial assets (excluding accounts receivable)
① If the Company have the following evidence to prove the impairment of financial assets, should
recognize the provision of impairment:
a. significant financial difficulty of the issuer or obligor;
b. a breach of contract, such as a default or delinquency in interest or principal payments;
c. the lender, for economic or legal reasons relating to the borrower＇s financial difficulty, granting to the
borrower a concession that the lender would not otherwise consider;
d. it becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
e. the disappearance of an active market for that financial asset because of financial difficulties;
f. observable data indicating that there is a measurable decrease in the estimated future cash flows from a
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group of financial assets since the initial recognition of those assets, although the decrease cannot yet be
identified with the individual financial assets in the group;
g. any seriously disadvantageous change has occurred to technical, market, economic or legal
environment, etc. wherein the debtor operates its business, which makes the investor of an equity
instrument unable to take back its investment;
h. the fair value of financial instrument investment incur serious or non-temporary decline;
i. other objective evidence that prove impairment of financial assets.
② On balance sheet date, the Company should adopt different impairment test method for different
category of financial assets, and recognize provision of impairment:
a. Held-to-maturity investments：on the balance sheet date, if there are objective evidence of impairment
for the investment, the Company has recognized the impairment loss by the asset’s carrying amount and
the present value of estimated future cash flows.
b. Available-for-sale financial assets：on the balance sheet date, the Company analyse the impairment
evidences of the financial assets, experienced judgment whether continuing decline in the fair value.
Generally, if the fair value of financial assets incurred serious decline, after consideration of all relevant
factors, anticipate this is non-temporary, therefore can identified the available-for-sale financial assets has
impaired, should recognize the impairment loss. When a decline in the fair value of an available-for-sale
financial asset has been recognised directly in equity and there is objective evidence that the asset is
impaired, the cumulative loss that had been recognised directly in equity shall be removed from equity and
recognised in impairment loss account of income statement.
(7) As for event about reclassifying the undue held-to-maturity investment into available-for-sale financial
assets, the Company shall state the basis of changes in holding purpose or ability
Available-for-sale financial assets：on the balance sheet date, the Company analyse the impairment
evidences of the financial assets, experienced judgment whether continuing decline in the fair value.
Generally, if the fair value of financial assets incurred serious decline, after consideration of all relevant
factors, anticipate this is non-temporary, therefore can identified the available-for-sale financial assets has
impaired, should recognize the impairment loss. When a decline in the fair value of an available-for-sale
financial asset has been recognised directly in equity and there is objective evidence that the asset is
impaired, the cumulative loss that had been recognised directly in equity shall be removed from equity and
recognised in impairment loss account of income statement.
10. Recognition criteria and withdrawal methods for bad debts provision of accounts receivable
(1) Bad debt provision for individually significant accounts receivable
On the balance sheet date, those individual accounts
Judgement basis or monetary standards of provision for bad debts of receivable and individual other receivable account for more
the individually significant accounts receivable than 10% (include 10%) of total balance of the accounts
receivable is considered as individual significant amounts.
A receivable of individual significance is individually
Method of individual provision for bad debts of the individually
assessed for impairment on the balance sheet date. If it is
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significant accounts receivable objectively evidential that a receivable of individual
significance has impaired, the impairment loss shall be
recognized based on the difference of the book values higher
than the present value of future cash flows, and relevant
provision for bad debts impairment shall be withdrawn.
(2) Accounts receivable for which bad debt provisions are made on the group basis
Withdrawal method of bad
Name of group debt provision on the group Recognition basis of group
basis
Aging group Aging analysis method Aging status
No bad-debt provisions were
Related-party group Related-party relationship
made.
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts receivable
Age
receivable (%) (%)
Within 1 year (including 1 year)
1-90 days 0% 0%
91-180 days 10% 10%
181-270 days 30% 30%
271-365 days 50% 50%
Over 365 days 100% 100%
1－2 years
2－3 years
Over 3 years
3－4 years
4－5 years
Over 5 years
In the groups, adopting balance percentage method to withdraw bad debt provision
√ Applicable □Inapplicable
Withdrawal proportion of accounts Withdrawal proportion of other
Name of group
receivable (%) accounts receivable (%)
In the groups, adopting other methods to withdraw bad debt provision
√ Applicable □Inapplicable
Name of group Note of method
3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
individually
Reason of individually withdrawing bad debt provision:
If any objective evidence shows that the accounts receivable is with insignificant individual amount, but its
credit risks are different from that of other accounts receivable, which shall be individually conducted the
impairment test.
Withdrawal method for bad debt provision:
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The accounts receivable should be individually conducted the impairment test basing on the difference of
the book values higher than the present value of future cash flows, then withdrawn relevant provision for
bad debts.
11. Inventory
(1) Classification
Inventories include finished goods and merchandises held for sale, work-in-progress and materials and
supplies to be consumed in the course of production of goods or rendering of services. Inventories are
classified into materials in transit, raw materials, work-in-progress, finished goods, materials and goods of
consignment and revolving materials etc.
(2) Pricing method for outgoing inventories
□ First-in first-out method √ Weighted average method □ Specific identification method □ Other
Inventories are measured using the weighted average method upon issuance.
(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for
inventories
① Estimates of net realizable value: Those stocks used for directly sale, the net realizable value is
referred to the estimated selling price minus the estimated selling expenses and related tax and fees in
normal operating process. Those stocks need to process; the net realizable value is referred to the
estimated selling price minus the estimated finished cost and estimated selling expenses and related tax
and fees in normal operating process; the net realizable value of the quantity of inventory held to satisfy
firm sales or service contracts is based on the contract price. If the sales contracts are for less than the
inventory quantities held, the net realizable value of the excess is based on general selling prices.
② Withdrawal method of impairment loss of inventories
At the balance sheet date, the evaluation criteria should base on the lower value between costs and net
realizable value. When net realizable values are lower than costs, provision for impairment loss of
inventories shall be made. Under normal circumstances, the Company provision impairment loss in
according to individual inventory items, but for large quantity and low-unit-price inventories, provision for
impairment loss of inventories shall be made based on the category of inventories; for those inventories
that relating to the same product line that have similar purposes or end uses, are produced and marketed in
the same geographical area, and cannot be practicably evaluated separately from other items in that
product line, their impairment loss provision shall be consolidated.
When the circumstances that previously caused inventories to be written off below cost no longer exist or
when there is clear evidence of an increase in net realizable value because of changed economic
circumstances, the amount of the write-off is reversed (i.e. the reversal is limited to the amount of the
original write-off) so that the new carrying amount is the lower of the cost and the revised net realizable
value. The amount reversed recording into current profit and loss.
(4) Inventory system for inventories:
□ Perpetual inventory system □ Periodic inventory system □ Other
The inventory system for inventories is perpetual inventory system.
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(5) Amortization method of the low-value consumption goods and packing articles
Low-value consumption goods
Amortisation method: one-off amortization method
Packing articles
Amortisation method: one-off amortization method
12. Long-term equity investment
(1) Recognition of initial investment cost
The Company separates the following two cases of long-term equity investment for measurement:
① Long-term equity investment obtained through business combinations:
a. For obtaining subsidiary under common control, the consideration cost can be cash payment,
non-monetary assets transfer or taking over the subsidiary’s liability. Under this situation, the investment
cost is carrying amount of shareholder’s equity of the subsidiary on the merger date. The difference
between the carrying amount of the net assets obtained and investment cost of long-term equity investment
shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference, any
excess shall be adjusted against retained earnings. In the case of company issues equity securities as the
consideration, the investment cost is carrying amount of shareholder’s equity of the subsidiary on the
merger date. If the book value amount of the issued shares is deemed as the capital, the difference between
the carrying amount of the issued shares and investment cost of long-term equity investment shall be
adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall
be adjusted against retained earnings. All direct expenses related to the merger, including the auditor fee,
evaluation expense, legal service expense, etc will be accrued into the current profit and loss.
b. For obtaining subsidiary not under common control, the cost of long-term equity investment is fair value
of assets paid, liabilities undertaken by the Company, or the fair value of equity bonds issued. Where the
cost of a business combination exceeds the acquirer’s interest in the fair value of the bargainor’s
identifiable net assets, the difference shall be recognized as goodwill, Where the cost of combination is less
than the acquirer’s interest in the fair value of the bargainor’s identifiable net assets, after reassessment, the
difference shall be recognized in profit or loss for the current period (non-operating income). The audit
fees、legal services fees、assessment and consultation fees and other costs directly related to business
combinations shall be recognised in the transaction period profits and losses, while instruments issued as
the consideration of business combinations, the issuing expenses of bonds or equity instruments recognised
as the initial costs of bonds or equity instruments included in the cost of business combinations (except for
issuing expenses of bonds and equity instruments).
② Other long-term equity investment that obtained not through business combinations, accordance with
the following principles to determine the investment costs:
a. Long-term equity investment, which is acquired by cash consideration, the actual cash payment amount
will be deemed as the investment cost. The investment cost includes the direct expenses related to the
long-term equity investment, taxes and other necessary expenses. But if the actual payment contains cash
dividend that has not been received but has been announced, that should be accounted separately.
b. Long-term equity investment, which is acquired by issuing equity securities, the fair value of the issued
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equity will be deemed as the investment cost.
c. For those long-term equity investments that invested by the investors, the values agreed in the
investment contracts or agreements will be deemed as the investment cost, except that the contracts or
agreements provide that the values are not fair.
d. Long-term equity investment is acquired by exchange of non-monetary assets, if the transaction has
commercial substance or the fair values of exchange assets can be reliably measured, the fair values of
these assets and relevant taxes will be deemed as the investment cost; the difference between the fair
values of the assets and book values will be recognised into the current profit and loss; if the non-currency
asset exchange does not satisfy these two conditions mention above, the book values of the assets and
relevant taxes will be deemed as the investment cost.
e. Long-term equity investment, which is acquired by the debt restructuring the fair values of the obtained
equities will be deemed as the investment cost; the difference between the investment cost and book values
of credit will be recognised into the current profit and loss.
(2) Subsequent measurement of long-term equity instruments and recognition of gains or losses
The historical cost convention is employed to calculate the long-term equity investment of subsidiaries and
will be adjusted in accordance with the equity method in the preparation of the consolidated financial
statements.
The Company adopts historical cost convention for the following conditions: a long-term equity
investment where the investing enterprise does not have joint control or significant influence over the
investee, the investment is not quoted in an active market and its fair value can’t be reliably measured.
The Company adopts equity method for the following conditions: a long-term equity investment where the
investing enterprise have joint control or significant influence over the investee.
a. When a long-term equity investment is subsequently measured using the historical cost convention,
increase or recovery of investment need to adjust the cost of long term equity investment. Cash dividends
or profit distributions declared by the investee shall be recognized as investment income in the current
period. However, investment income recognized by the investing enterprise shall be limited to the amount
distributed to it out of accumulated net profits of the investee arising after the investment was made. Any
cash dividends or distributions received in excess of this amount shall be treated as a recovery of
investment cost.
b. When a long-term equity investment is subsequently measured using the equity method, after the
investing enterprise has acquired a long-term equity investment, it shall recognize its share of net profits or
losses made by the investee as investment income or losses, and adjust the carrying amount of the
investment accordingly.
Investment income for the reporting period is recognised as the investor’s share of the net profit or loss of
the investee for that reporting period. In computing the investor’s share of the net profit or loss of the
investee, the net profit or loss of the investee in the investee’s account is adjusted for non-uniform
accounting policies, the increased or decreased depreciation and amortization resulting from the
acquisition fair value adjustments on fixed assets and intangible assets of the investee, the acquisition fair
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value adjustments on impairment allowance for assets and the elimination of intra-group transaction except
losses arising from intra-group transactions which are impairment loss on assets in accordance with CAS 8
– Impairment of assets.
If an investor’s share of losses of an associate equals or exceeds its interest in the associate, the investor
discontinues recognizing its share of further losses, after the investor’s interest is reduced to zero,
additional losses are provided for, and a liability is recognized, only to the extent that the investor has
incurred legal or constructive obligations or made payments on behalf of the associate; If the associate
subsequently reports profits, the investor resumes recognizing its share of those profits only after its share
of the profits equals the share of losses not recognized, recover investment interests, and in the book value
of the long-term equity investment successively.
Those long term equity for affiliated company and joint company, hold before first executive date, if there
is relevant investment debit difference, according to residual time to amortize in straight line method, the
amortization amount recognized in current profit and loss account.
(3) Recognition basis of joint control and significant influences
The existence of jointly control by an investor is usually evidenced in one or more of the following ways:
①any venturer cannot control the jointly controlled company’s operation alone; ②the strategy decision of
the jointly controlled company, should be agreed by each venture parties; ③the venturers may appoint one
of them to manage the jointly controlled company, through control or agreement, but the management must
follow all venturers’ financial and operation strategies. When the jointly controlled company during legal
reconstruction or bankrupt, or the transfer funds to investors strictly restricted in long time, the venturers
cannot exercise joint control to the investee. However, if the joint control is really exist can be certified, the
venturers still adopt equity method of long term equity investment principle to account.
The existence of significant influence by an investor is usually evidenced in one or more of the following
ways: ①representation on the board of directors or equivalent governing body of the investee; ②
participation in policy-making processes, including participation in decisions about dividends or other
distributions; ③material transactions between the investor and the investee; ④dispatch of managerial
personnel; or ⑤provision of essential technical information.
(4) Testing method of impairment and withdrawal method of provision for impairment
Each long-term equity investment is individually assessed for impairment on the balance sheet date. The
assessment takes into account factors such as the investee’s operating strategies, the legal environment in
which the investee operates, the demand of the market in which the investee operates and the investee’s
profit-making ability to determine whether a long-term equity investment is subject to impairment. If the
carrying amount of a long-term equity investment exceeds its net recoverable amount as at the balance
sheet date, the excess is recognised as impairment loss of assets for the reporting period during which the
impairment occurred; and an impairment allowance for that long-term equity investment of equal amount
is also recognised. The recognised impairment loss for long-term equity investment is irreversible.
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13. Investment property
Investment property is held to earn rentals or for capital appreciation or for both. Investment property
includes leased or ready to transfer after capital appreciation land use rights and leased buildings.
(1) Depreciation or amortization method of property investment is measured by cost model:
Property investment is measured by cost model, according to its expected useful life and net residual rate
on buildings and land-use right to calculate depreciation or amortization. The Company’s estimated useful
life, net residual rate and annual depreciation rate of investment property set out below:
Estimated Annual depreciation
Categories Estimated useful life
residual rate % (amortization) rate %
Houses and buildings 10.00 20 years 4.50
Straight-line method during the
Land use rights 0.00
useful life
(2) Basis of impairment of property investment is measured by cost model
On the balance sheet date, the evaluation criteria should base on the lower value between costs and net
realizable value. When net realizable values are lower than costs, provision for impairment loss of property
investment shall be made. If the value of the impaired investment property recovered, the provided
impairment loss in prior period cannot be carry back.
14. Fixed assets
(1)Recognized standard of fixed assets
Fixed assets are tangible assets, held for use in production or supply of goods or services, for rental to
others, or for administrative purpose, and have high unit price, as well as useful lives more than one
accounting year. Fixed assets shall be recognized by actual costs incurred, if they meet the following
conditions:
① The economic benefits related to fixed asset probably flows to the enterprise;
② The cost of fixed asset may be reliably measured.
The expenses relate meet above condition to fixed asset would be capitalized in the cost of asset, if not, it
would be recognized as expense in profit and loss account of that period.
(2) Recognition basis and pricing method of fixed assets by finance lease
When transferred substantially all the risks and rewards incidental to ownership, the Company recognize
the fixed assets of finance lease. At the commencement of the lease term, the Company shall recognize
finance leases as assets and liabilities in their balance sheets at amounts equal to the fair value of the leased
property or, if lower, the present value of the minimum lease payments. The depreciation policy for
depreciable leased assets shall be consistent with that for depreciable assets that are owned. If there is
reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset shall be
fully depreciated over the lease term, however, if there is no reasonable certainty that the lessee will obtain
ownership by the end of the lease term, the asset shall be fully depreciated over the shorter of the lease
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term and its useful life.
(3) Depreciation methods of fixed assets
Straight-line method is in used to calculate the depreciation of fixed assets.
Expected net salvage value
Category of fixed assets Useful life (Y) Annual deprecation (%)
(%)
Housing and building 20 years 10.00 4.50
Machinery equipments 11-18 years 0.00 5.56-9.09
Electronic equipments and other 6 years 0.00 16.67
Transportation vehicle 6 years 0.00 16.67
The shorter one of
Expenditures for improvement of
beneficiary period and lease 0.00
rented fixed assets
period
Other equipments
Fixed assets acquired under
-- -- --
finance lease:
Of which: housing and building
Machinery equipments
Electronic equipments and other
Transportation vehicle
Other equipments
(4) Testing method of impairment and withdrawal method of provision for impairment on fixed assets
On the balance sheet date, the Company assess all types of fixed assets whether there is any indication that
an asset may be impaired, if any such indication exists, the entity shall estimate the recoverable amount of
the asset, reducing the carrying value to the estimated recoverable amount, the difference recognized into
the current profit and loss account, simultaneous recognize the provision for impairment. Once the
impairment loss has been recognized, never carry back in future accounting period. In assessing whether
there is any indication that an asset may be impaired, the Company shall consider, as a minimum, the
following indications:
- during the period, an asset’s market value has declined significantly more than would be expected as a
result of the passage of time or normal use;
- significant changes with an adverse effect on the entity have taken place during the period, or will take
place in the near future, in the technological, market, economic or legal environment in which the entity
operates or in the market to which an asset is dedicated;
- market interest rates or other market rates of return on investments have increased during the period, and
those increases are likely to affect the discount rate used in calculating an asset’s value in use and decrease
the asset’s recoverable amount materially;
- evidence is available of obsolescence or physical damage of an asset;
- significant changes with an adverse effect on the entity have taken place during the period, These changes
include the asset becoming idle, plans to discontinue or restructure the operation to which an asset belongs,
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plans to dispose of an asset before the previously expected date;
- evidence is available from internal reporting that indicates that the economic performance of an asset is,
or will be, worse than expected. For example: the net cash inflow or realized operating profits( or losses)
made by the assets has declined significantly more than would be expected.
- other indications that an asset may be impaired.
(5) Other explanations
Naught
15. Construction in progress
(1) Categories of construction in progress
The category of construction in progress is classified by the approved project.
(2) Standards and time of transferring construction in progress into fixed asset
Construction in progress is transferred to fixed assets when the project is substantially ready for its
intended use. The project is in condition of ready for used but not transact in the final account would be
transferred to fixed assets in its estimate value, and adjust the value after transact in the final account, but
would not adjust depreciated value that have been depreciated.
(3) Impairment test method and withdrawal method for impairment provision of construction in progress
On the balance sheet date, the Company shall assess the overall construction in progress, if there is
evidence provide that the value of project are declined, the entity shall estimate the recoverable amount of
the asset, reducing the carrying value to the estimated recoverable amount, the difference recognized into
the current profit and loss account, simultaneous recognize the provision for impairment. Once the
impairment loss has been recognized, never carry back in future accounting period. Exercise impairment
test for construction in progress, if meet the one or more the following conditions:
① suspend the project in a long time, and according to the estimate, not restart the construction within the
next 3years;
② evidence is available of obsolescence in either function or technical, and bring great uncertainty for the
cash inflows to the Company;
③ other indications that project may be impaired.
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs that are direct attributable to construction, purchase and production of assets and comply
with capitalization conditions, shall be capitalized and accounted to costs of relate assets; otherwise,
borrowing costs shall be recognized as expenses when incurred and accounted through in profit and loss in
current period.
The capitalization of borrowing costs shall satisfy the following conditions:
① The capital expenditures have been incurred.
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
② The borrowing costs have been incurred.
③ Activities relating to acquisition, construction or production that are necessary to make the assets being
intended for use or sales have been launched.
Other borrowing costs、discount or premium and difference of foreign exchange, should be recognized in
the current profit and loss account.
(2) Capitalization period of borrowing costs
The borrowing costs have been occurred.
(3) Period of suspension of capitalization of borrowing costs
Capitalization of borrowing costs shall be suspended during periods in which acquisition, construction or
production of assets is interrupted abnormally, and is interrupted for over continuous period of three
months.
Capitalization of borrowing costs should cease when substantially all the activities necessary to prepare the
qualifying asset for its intended use or sale are complete. Borrowing costs should be recognised as an
expense in the subsequent period.
(4) Calculation method of capitalized amount of borrowing costs
For a specific purpose borrowing, the amount of interest to be capitalized shall be the actual interest
expenses incurred for the period less deposit interests of the borrowing founds or investment income from
the temporary investment.
Where funds are borrowed under general purpose, the entity shall determine the amount of interest to be
capitalized by applying capitalization rate to weighted average of the excess amount between cumulative
expenditures on the asset and the amount of specific-purpose borrowings. The capitalization rate shall be
weighted average of the interest rates applicable to the general-purpose borrowings.
17. Biological assets
18. Oil-gas assets
19. Intangible assets
(1) Pricing method of intangible assets
Intangible assets are recognized initially at cost.
Period of intangible asset that could bring future economic benefit inflow to company could determined
reasonably according to the judgment according to reason of contract right or other legal right, condition in
same industry, history experience, and demonstrate of expert would be recognize as finite useful life assets.
Otherwise, the asset would be recognized as infinite useful life assets.
① To estimate the life of finite useful years asset would consider factor of: a. The life cycle of the product
produced by the assets, and the information of similar asset; b. The development of craftwork and
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technology, and the estimate of future development trend; c. The demand condition in market of the
product produced by the asset; d. The estimated action would be taken by competitor or potential
competitor; e. The expense expected to maintain the assets to bring future economic benefits and the
ability of the Company to pay for it; f. The relevant law restriction on control period of the asset or other
similar restriction such as franchise, lease period; g. Relation with other assets’ useful life, that hold by the
Company.
② The intangible asset with finite useful years should be amortization on a systematic and rational basic
according its economic benefit achievement plan. A straight line method would be used if the plan could
not define.
(2) Estimated useful life of intangible assets with limited useful life
Item Estimated useful life Basis
(3) Judgment basis of intangible assets with uncertain useful life
(4) Withdrawal of impairment provision of intangible assets
Intangible asset with infinite useful years would not amortize, but would conduct impairment test every
year. the useful life of such an asset should be reviewed each reporting period to determine whether events
and circumstances continue to support an indefinite useful life assessment for that asset., if still under
uncertainty situation after the revaluation, shall conduct impairment test. When the net recoverable amount
lower than the carrying value, reducing the carrying value to the estimated recoverable amount, the
difference recognized into the current profit and loss account, simultaneous recognize the impairment
allowance. The recognised impairment allowance is irreversible in subsequent reporting periods.
Exercise impairment test for intangible assets, if meet the one or more the following conditions:
① Significant changes with an adverse effect on the profitability of intangible assets have taken place
during the period, These changes include the intangible replaced by other new technique;
② The market value has declined in current period, and may not rise in the future residual period;
③ Other indication to prove that the carrying value higher than the recoverable value.
(5) Criteria of separating the research phase and development phase of internal R&D project
Internal organizational research expenses are accounted through profit and loss in current period;
development costs which are recognized as intangible assets shall satisfy the following conditions: ① it
is technical feasible for use or sales upon the completion of the intangible assets; ② it is intended for use
or sales upon the completion of the intangible assets; ③ the manner to provide that expect future economic
benefits that are attributable to the intangible assets including a market is exist for the asset or product of
the asset or provide evidence of serviceable if asset are inside used; ④ the entity should have enough
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technology, financial and other resources to support the completion of development, and have ability to use
or sale the intangible assets; ⑤ the cost of intangible asset can be measured reliably.
(6) Calculation of the expenditures of internal R&D project
20. Amortization method of long-term deferred expenditure
An item long-term deferred expenses is an expense which has been incurred and which has a beneficial
period (a period during which an expense is expected to bring economic benefits to an entity) which is
longer than one year and which includes at least part of the reporting period during which the expense was
incurred and subsequent reporting periods. An item of long-term deferred expenses is recognised at the
actual amount of the expense incurred and allocated in each month of the beneficial period using the
straight line method.
21. Assets transfer with repurchasing conditions
The sales and buy back is one of sales mode of the Company, that is means when sale the product,
simultaneously agreed to buy back the same or similar product in the future. Under this sales mode, the
Company accords to the clause of contract or agreement to decide whether the revenue recognition criteria
are satisfied. If the Company has not transferred to the buyer the significant risks and rewards of
ownership of the goods, the Company should not recognize the revenue; if the buy back price higher than
the original sales price, during the buy back period, the Company shall recognize the interest expenses to
income statement (financial expenses).
22. Estimated liabilities
(1) Recognition criteria of estimated liabilities
Obligation with contingency factor such as external hypothecate, lawsuit or arbitrage in dispute, guarantee
on quality of product, cut-down plan, loss of contract, recombine obligation, obligation on abandon fixed
asset, and meet the follow condition simultaneously would determined as liabilities:
①This obligation is current obligation of the Company; and,
②The performance of this obligation will probably cause economic benefits outflow of the Company; and,
③The amount of this obligation can be reliably measured.
Loss contracts and restructuring obligations of the Company meet the above conditions shall be recognized
as accrued liabilities.
(2) Measurement of estimated liabilities
Accrued liabilities would be measured initial according to the optimum evaluation of outflow of economic
benefit, and the Company perform relate obligation that consider risk, incertitude, time value of currency
of contingency factor. Discount future cash flow to present value to determine the optimum evaluation if
the time value of currency has great impact. On balance sheet date, check the carry amount of accrued
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liabilities, and make adjustment to carry amount to reflect the optimum evaluation. The increase amount in
carry amount of accrued liabilities cause by time process would be determined as interest fee.
23. Share-based payment and equity instruments
(1) Categories of share-based payment
The types of shares-based payment of the Company are: cash-settle and equity-settle.
① Cash-settled share-based payment
The measurement of cash-settle is according with the fair value of liability undertake by the Company,
which is calculated base on the Company’s share or other equity instrument.
The value of cash-settle share-based payment that could exercise immediately after award would be
reckoned to relate cost or expense, and increase liability corresponds to it.
On each balance sheet date, a best estimated of situation of exercise cash-settled right that with
waiting-period should be undertaken, and reckon cost or expense and increase liability which is on the base
of service award by the Company, according to the fair value of company’s liability.
② Equity-settled share-based payment
The measurement is base on the fair value of the equity instrument granted to employees.
The value of equity-settled payment that could be exercised immediately after award would be reckoned in
relates cost and expense and increase capital reserves corresponds to it..
On each balance sheet date, a best estimated of amount of exercise equity-settled that with waiting-period
should be undertaken, and reckon in cost or expense and capital reserves which is on the base of service
award by the Company, according to the fair value of company’s liability.
(2) The measures for the recognition of the fair value of the equity instruments.
① For those shares granted to employees shall measure the fair value of equity instruments granted at the
measurement date, based on market prices if available, simultaneously, taking into account the terms and
conditions ( exclude the vesting conditions of external market) upon which those equity instruments were
granted.
② For those share options granted to employees, the market prices are not available in most circumstance.
If there is no clauses and requirements of others similar trading options, the Company shall estimate the
fair value of the share option granted using a valuation technique.
(3) Basis for the recognition of the best estimation of the vested equity instruments
On each balance sheet date of waiting-period, the Company shall recognize an amount for the equity
instrument during the vesting period based on the best available estimate of the number of equity
instruments expected to vest and shall revise that estimate, if necessary, if subsequent information indicates
that the number of equity instruments expected to vest differs from previous estimates.
(4) Relevant accounting treatment on the implementation, revision and termination of share-based payment
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plan
① For cash-settled share-based payment transactions granted vest immediately, reckon cost or expense
according to the fair value of the Company’s liability on the measurement date, increase liability
corresponds to it. At each reporting date and at the date of final settlement, with any change in intrinsic
value recognised in profit or loss.
② If the equity instruments granted do not vest until completes a specified period of service or can be
satisfied pre requirement, on each balance sheet date of waiting-period, the Company shall recognize an
amount for the equity instrument during the vesting period based on the best available estimate of the
number of equity instruments, according to the fair value of the Company’s liability, recognize the received
services as cost or expense, and increase liability corresponds to it.
③ The value of equity-settled payment that could be exercised immediately after award would be
reckoned in relates cost and expense and increase capital reserves corresponds to it..
④ If the equity instruments granted do not vest until completes a specified period of service or can be
satisfied pre requirement, on each balance sheet date of waiting-period, the Company shall recognize an
amount for the equity instrument during the vesting period based on the best available estimate of the
number of equity instruments, according to the fair value on the measurement date,, recognize the received
services as cost or expense, and increase capital reserve corresponds to it.
24. Repurchase of shares of the Company
The Company accords to the legal procedures and approval through legal reporting, to decrease the share
capital by the shares buy back method, reduce the paid-in capital by the amount of total nominal value of
withdrawn shares, the difference between share price paid(including trading expense) and the nominal
value shall be adjust the amount of equity, any amount more than the total nominal value, shall reducing
the capital reserve(share premium)、surplus reserve and undistributed profits successively; any amount
lower than the total nominal value, shall increasing the capital reserve(share premium).
The shares before buy back, as the treasury stock management, the share buy back payment recognized as
cost of treasury stock.
If the transfer revenue received higher than the cost of the treasury stock, transfer the treasury stock,
should be increase the capital reserve(share premium); if that revenue received lower than the cost, should
be reduce the capital reserve(share premium)、surplus reserve and undistributed profits successively.
25. Revenue
(1) Criteria for recognition time of revenue from selling goods
Revenue from the sale of goods shall be recognized when all of the following conditions are satisfied:
① the entity has transferred the significant risks and reward ownership of goods to the buyer;
② the entity retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over goods sold;
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③ the amount of revenue can be measured reliably;
④ relate economic benefit is probably inflow to the enterprise;
⑤ the associated costs incurred or to be incurred can be measured reliably.
No matter what sales way the Company adopts to conduct its export sales of products, the recognition
method for revenue is based on agreement in sales contracts or orders. As for selling products with the
settlement way of FOB domestic port, revenue of sales are recognized to realize after gaining the B/L upon
loading and completing the customs export formalities; as for selling products with the settlement way of
FOB overseas port, revenue of sales are recognized to realize after completing the customs export
formalities and gaining the B/L upon loading overseas.
The Company’s accounting treatment for return of sales: according to the prevailing rules for international
trade, the settlement way of FOB means that the purchaser has checked and accepted the purchased goods
at the loading place, and undertaked relevant risks after shipping upon the check and acceptance, so the
Company didn’t make individual provision for the above issue, but recorded it directly into the gains and
losses upon occurance. The Company’s accounting treatment of claims: the Company calculated the
claims expense ratio according to the ratio of the annual amount of claims over the recent two years in the
annual revenue of sales, and then withdrew the claims expenses to be recognized for the current sales of
products according to the current revenue of sales and expected claims expenses ratio at the end of
reporting period.
(2) Recognition basis of revenue from transfer of assets use right
The revenue of transfer of assets use right including : interest income、user charges etc, recognized when
all the following conditions are satisfied:
① the economic benefits related to the transaction are probably will flow into the Company;
② the amounts can be reliably measured.
Interest income, compute base on the funds used time by other peoples and the actual interest rate.
User charges, compute base on the chargeable time and method arranged in the contract or agreement.
(3) Recognition basis and method for the schedule of contracted project when recognizing the revenue
from providing labor services and construction contract by percentage-of-completion method
Revenue from rendering of services
① The Company recognize revenue from rendering of service when come out of rendering of service can
be measured reliably at balance sheet date, and adopt percentage of completion method in recognition of
revenue. The method depends on schedule of complete to determined revenue and expense.
the outcome of service can be estimated reliably when all the following conditions are satisfied:
a. the amount of revenue can be measured reliably;
b. relate economic benefit is probably inflow to the enterprise;
c. the complete of schedule could be determined reliably;
d. the associated costs incurred or to be incurred can be measured reliably.
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② When the outcome of rendering of service cannot be measured reliably at balance sheet date:
a. revenue shall be recognized to the extent of costs incurred that are expected to be recoverable if
compensation are predict to be award;
b. to those cost that without compensation in predict, through to profit and loss account without
recognize revenue.
Revenue from construction contracts
① When the outcome of a construction contract can be estimated reliably, contract revenue and contract
costs associated with the construction contract should be recognised as revenue and expenses respectively
by reference to the stage of completion of the contract activity at the balance sheet date. The recognition of
revenue and expenses by reference to the stage of completion of a contract is often referred to as the
percentage of completion method. Under this method, contract revenue is matched with the contract costs
incurred in reaching the stage of completion, resulting in the reporting of revenue, expenses and profit
which can be attributed to the proportion of work completed.
In the case of a fixed price contract, the outcome of a construction contract can be estimated reliably when
all the following conditions are satisfied:
a. total contract revenue can be measured reliably;
b. it is probable that the economic benefits associated with the contract will flow to the enterprise;
c. the contract costs attributable to the contract can be clearly identified and measured reliably so that
actual contract costs incurred can be compared with prior estimates; and
d. both the contract costs to complete the contract and the stage of contract completion at the balance
sheet date can be measured reliably.
In the case of a cost plus contract, the outcome of a construction contract can be estimated reliably when
all the following conditions are satisfied:
a. it is probable that the economic benefits associated with the contract will flow to the enterprise; and
b. the contract costs attributable to the contract, can be clearly identified and measured reliably.
On the balance sheet date, under the percentage of completion method, contract revenue is recognised as
revenue in the income statement in the accounting periods in which the work is performed. Contract
costs are usually recognised as an expense in the income statement in the accounting periods in which the
work to which they relate is performed. The Company may have incurred contract costs, indemnity or
reward, caused by the change of the contract. Such contract costs can be recognised as revenue, if such
costs represent an amount due from the customer and there is an agreement with the customer.
② When the outcome of a construction contract cannot be estimated reliably:
a. revenue should be recognised only to the extent of contract costs incurred that it is probable will be
recoverable; and
b. if the cost can not be recovered, contract costs should be recognised as an expense in the period in
which they are incurred.
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③ An expected loss on the construction contract should be recognised as an expense immediately
26. Government subsidies
(1) Types
① A government grant related to an asset;
② A government grant related to income.
(2) Accounting treatment method
Accounting treatment method:
① A government grant related to an asset shall be recognized as deferred income, when the assets is
substantially ready for its intended use, evenly amortized to profit and loss over the useful lives of the
related asset. Unamortized amount would be one-off recognized in profit and loss account when the asset
is sale, convey, scrap, derogation before its useful life.
② For government grant related to income, if the grant is a compensation for related expenses or losses to
be incurred in subsequent periods, the grant shall be recognized as deferred income, and recognized in
profit and loss over the periods in which the related cost are recognized.
If the recognized government grants needed to return back, which shall be treated as follows:
①If there is relevant deferred income, decrease the carrying value of the deferred income, any exceeds the
amount shall be recognized to current profit and loss account.
②If there is no relevant deferred income, recognized to current profit and loss account directly.
27. Deferred income tax assets and deferred income tax liabilities
(1) Recognition basis of deferred income tax assets
① Deferred tax assets shall be recognized according to deductible temporary differences to the extent that
is probable that tax profits will be available against which the deductible temporary differences can be
utilized, but deferred tax assets arise from initial recognize of assets and liabilities in transaction that have
character listed below would not recognised:
a. The transaction is not business combination;
b. At the time of the transaction, it affects neither accounting profit nor Taxable business revenue (or
deductible loss).
② The Company and subsidiaries, associated companies and joint venture investments that can be related
to deductible temporary differences, while meeting the following conditions, to confirm the corresponding
deferred income tax assets:
a. Temporary differences in the foreseeable future is likely to switch back to; and
b. It is likely to be used for deductible temporary differences in taxable income in the future.
③ The Company can carry forward for the subsequent year’s tax losses and tax credits, to very likely be
used to offset tax losses and tax credits amount of future taxable income limit, verify the corresponding
deferred income tax assets.
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
④ The carrying amount of deferred income tax assets shall be reviewed at each balance sheet date. If it is
unlikely to obtain sufficient taxable income to offset against the benefit of the deferred income tax asset,
the carrying amount of the deferred income tax assets shall be written down.
Any such write-down should be subsequently reversed where it becomes probable that sufficient taxable
income will be available.
(2) Recognition basis of deferred income tax liabilities
Deferred tax liabilities shall be recognized for all taxable temporary differences, except to the extent that
the deferred tax liabilities arise from:
① The initial recognition of goodwill;
② The initial recognition of assets or liabilities, when all the following conditions are satisfied:
a. The transaction is not a business combination;
b. At the time of the transaction, it affects neither accounting profit nor Taxable business revenue (or
deductible loss).
③ Temporary differences arise from the investments in subsidiaries, associates and interests in joint
ventures, when all the following conditions are satisfied:
a. The parent, investor or venturer is able to control the timing of the reversal of the temporary difference;
and
b. It is probable that the temporary difference will not reverse in the foreseeable future.
28. Operating lease and financial lease
(1) Accounting treatments of operating lease
① When the Company as the lessee under operating lease, lease payments under an operating lease shall
be recognized as an expense on a straight-line basis over the lease term. Initial direct expense undertaken
by the Company, recognized to the management expenses, contingent rental incurred recognized as current
expenses. If the lease contract including a rent-free period, the Company shall amortize the overall rent
expenses on a straight-line basis over the whole lease period, during the rent-free period recognize lease
expenses and liability correspond to it. If the lessee’s expenses paid by the lessor, the Company shall be
reduce this expenses from the total rent expenses, and amortize the balance.
② When the as the lessor under operating lease, lease income from operating leases shall be recognised in
income on a straight-line basis over the lease term. The initial costs, recognized to the current profit and
loss account, however, if the amount is large, shall be added to the carrying amount of the leased asset and
recognised as an expense over the lease term on the same basis as the lease income. If the contract
including a rent-free period, the Company shall recognize the total lease income for the whole lease period,
during the rent-free period recognize the income also. If the Company paid some lessee’s expenses, the
Company shall amortize the income balance (total lease income deduct the expenses) during lease period.
(2) Accounting treatments of financial lease
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
① At the commencement of the lease term, lessees shall recognize finance leases as assets in their balance
sheets at amounts equal to the fair value of the leased property or, if lower, the present value of the
minimum lease payments, and the amount of present value of the minimum lease payments recognized as
long term accounts payable, the difference recognized as unrecognized financial charges. During each
lease period, adopt actual interest rate method to amortize the expenses, and recognized to financial
expense in current period.
The depreciation policy for depreciable leased assets shall be consistent with that for depreciable assets
that are owned, the depreciation period according to the lease period. If there is reasonable certainty that
the lessee will obtain ownership by the end of the lease term, the assets shall be depreciated over its useful
life. If there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term,
the asset shall be fully depreciated over the shorter of the lease term and its useful life.
② When the Company as the lessor under finance lease, lessor shall recognize assets held under a finance
lease in their balance sheets and present them as a long term accounts receivable at an amount equal to the
minimum lease receivable add the initial cost, and simultaneously recognize unguaranteed residual value
and the total of present value shall be recognized as unrealized financing profits, adopt the actual interest
rate method to recognize income during the lease period, recording to other operating income.
29. Assets held for sale
(1) Recognition criteria of the assets held for sale
The Company shall classify a non-current asset as held for sale if when all the following conditions are
satisfied:
① The appropriate level of management must be committed to a plan to sell the assets;
② The Company has entered into a irrepealably transfer agreement with buyer;
③ The sale should be expected to qualify for recognition as a completed sale within one year from the
date of classification.
(2) Accounting treatments of the assets held for sale
A non-current asset classified as held for sale is measured at the net residual amount after deducting the
costs necessary to make a sale from its held-for-sale-classification fair value upon classification. The net
residual amount is capped by the carrying amount of the asset immediately before the classification. The
excess of the carrying amount of the asset immediately before the classification over the net residual
amount is accounted for as impairment loss on assets for the reporting period during which the asset is
classified as held for sale.
If a non-current asset (or disposal group) held for sale no longer meets the criteria for recognition as held
for sale, the asset (or disposal group) is ceased to be recognised as held for sale and measured at the lower
of:
① Its carrying amount before the asset (or disposal group) was classified as held for sale, adjusted for any
depreciation, amortization or revaluations that would have been recognised had the asset (or disposal group)
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
not been classified as held for sale, and
② Its recoverable amount at the date of the subsequent decision not to sell.
30. Capitalization of assets
31. Hedging accounting
32. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the report period?
□Yes √No □ Inapplicable
(1) Change of accounting policies
Were the main accounting policies changed during the report period?
□Yes √No □ Inapplicable
(2) Change of accounting estimates
Were the main accounting estimates changed during the report period?
□Yes √No □ Inapplicable
33. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the report period?
□Yes √No □ Inapplicable
(1) Retrospective restatement method
Was any previous accounting error adopting retrospective restatement method discovered in the report
period?
□Yes √No □ Inapplicable
(2) Prospective application method
Was any previous accounting error adopting prospective application method discovered in the report
period?
□Yes √No □ Inapplicable
34. Other main accounting policies and estimates as well as compilation method of financial
statements
Naught
(V) Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
Revenues from sales of products and raw
VAT 0, 17
materials
Consumption tax
Business tax Taxable business revenue 5
Circulating taxes, exemption and
Urban maintenance and construction tax 7
deductible taxes
Enterprise income tax Taxable income 25
Circulating taxes, exemption and
Education surcharge 3
deductible taxes
Circulating taxes, exemption and
Local education surcharge 2
deductible taxes
The income tax rates adopted by each subsidiary and branch factory
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(1) Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. (hereafter, TKL)
Category of taxes Tax basis Tax rate%
VAT Revenues from sales of product and raw material 0,17
Business tax Taxable business revenue 5
Urban maintenance
Circulating taxes, exemption and deductible taxes 5
and construction tax
Education surcharge Circulating taxes, exemption and deductible taxes 3
Local education surcharge Circulating taxes, exemption and deductible taxes 2
Enterprise income tax Taxable income 15
In accordance with the Notice on Confirmation of the First and Second Batch Re-examined Hi-tech
Enterprises of Fujian Province for 2011 (Min-Ke-Gao (2012) No. 1), Tsann Kuen (Zhangzhou) Enterprise
Co., Ltd. was confirmed as the first batch re-examined hi-tech enterprise of Fujian Province for 2011
(certificate No.: GF201135000115), with the valid periods of the year of 2011, 2012 and 2013.
(2) Tsann Kuen (Zhangzhou) South Port Electronics Enterprise Co., Ltd.
Category of taxes Tax basis Tax rate%
VAT Revenues from sales of product and raw material 0,17
Business tax Taxable business revenue 5
Urban maintenance
Circulating taxes 5
and construction tax
Education surcharge Circulating taxes 3
Local education surcharge Circulating taxes 2
Enterprise income tax Taxable income 25
(3) Tsann Kuen China (Shang Hai) Enterprise Co., Ltd.
Category of taxes Tax basis Tax rate%
VAT Revenues from sales of product and raw material 17
Business tax Taxable business revenue 5
Urban maintenance
Circulating taxes 1
and construction tax
Education surcharge Circulating taxes 3
Local education surcharge Circulating taxes 2
Enterprise income tax Taxable income 25
(4) Shanghai Canxing Trading Co.,Ltd.
Category of taxes Tax basis Tax rate%
VAT Revenues from sales of product and raw material 17
Business tax Taxable business revenue 5
Urban maintenance
Circulating taxes 1
and construction tax
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Category of taxes Tax basis Tax rate%
Education surcharge Circulating taxes 3
Local education surcharge Circulating taxes 2
Enterprise income tax Taxable income 25
(5) Star Travel International (Xia Men) Co.,Ltd.
Category of taxes Tax basis Tax rate%
Business tax Taxable business revenue 5
Urban maintenance
Circulating taxes 7
and construction tax
Education surcharge Circulating taxes 3
Local education surcharge Circulating taxes 2
Enterprise income tax Taxable income 25
(6) Xiamen Canxing Trading Co.,Ltd.
Category of taxes Tax basis Tax rate%
VAT Revenues from sales of product and raw material 17
Business tax Taxable business revenue 5
Urban maintenance
Circulating taxes 7
and construction tax
Education surcharge Circulating taxes 3
Local education surcharge Circulating taxes 2
Enterprise income tax Taxable income 25
(7) Shanghai Fanxin Airlines Service Co., Ltd.
Category of taxes Tax basis Tax rate%
Business tax Taxable business revenue 5
Urban maintenance
Circulating taxes 1
and construction tax
Education surcharge Circulating taxes 3
Local education surcharge Circulating taxes 2
Enterprise income tax Taxable income 25
(8) Star Travel International (Da Lian) Co.,Ltd.
Category of taxes Tax basis Tax rate%
Business tax Taxable business revenue 5
Urban maintenance
Circulating taxes 7
and construction tax
Education surcharge Circulating taxes 3
Local education surcharge Circulating taxes 2
Enterprise income tax Taxable income 25
(9) Xiamen Star Comgistic Trading Co.,Ltd.
Category of taxes Tax basis Tax rate%
VAT Revenues from sales of product and raw material 17
Business tax Taxable business revenue 5
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Category of taxes Tax basis Tax rate%
Urban maintenance
Circulating taxes 7
and construction tax
Education surcharge Circulating taxes 3
Local education surcharge Circulating taxes 2
Enterprise income tax Taxable income 25
(10) PT. STAR COMGISTIC INDONESIA
Category of taxes Tax basis Tax (fare) rate%
VAT Revenues from sales of product and 10(note)
raw material
Enterprise income tax Taxable income 25
The legal tax rate of VAT is 10%, however, in according to the approval document with number as
ST-718/WBC.08/KPP.MP.02/2011 issued by Bureau of Customs of Indonesia on 5 Oct. 2011, the
approval document with number as 291KMK.05/1997 issued by Ministry of Finance of Indonesia on 26
Jul. 1997 and the approval document with number as KEP-63/BC /1997 issued by General Administration
of Customs of Indonesia, PT. STAR COMGISTIC INDONESIA is confirmed as a bonded factory, thus the
actual applicable VAT tax rate for the export products by acquiring raw materials is zero.
2. Tax preference and official documents
According to 《Notice about Implementation of Preferential Policies of the on Transition of Enterprise
Income Tax》[No.39 (2007) of State Council ] issued by The State Council on December 16 2007 and
《Notice of the Ministry of Finance and State Administration of Taxation about Implementation of
Preferential Policies of the State Council on Transition of Enterprise Income Tax》[No. 21 (2008)] of the
Ministry of Finance] issued by the ministry on February 23,2008, the income tax rate applicable to the
Company is 18%, 20%, 22%, 24% and 25% for 2008, 2009, 2010, 2011 and 2012 respectively.
In accordance with the Notice on Confirmation of the First and Second Batch Re-examined Hi-tech
Enterprises of Fujian Province for 2011 (Min-Ke-Gao (2012) No. 1), Tsann Kuen (Zhangzhou) Enterprise
Co., Ltd. was confirmed as the first batch re-examined hi-tech enterprise of Fujian Province for 2011
(certificate No.: GF201135000115), with the valid periods of the year of 2011, 2012 and 2013.
3. Other notes
VI. Business combination and consolidated financial statement
General instruction of business combination and consolidated financial statements
1. Subsidiaries
(1) Subsidiaries obtained by establishment and investment
84
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Unit: RMB Yuan
Balance of
parent
company’s
equity after
The The Includ deducting
proporti proporti ed in the
Actual amount
Other Deductible difference
Register Business Registered Curre of investments on of on of consol Minority
Subsidiaries Type Business scope essential minority that loss of
ed place nature capital ncy at the holding voting idated interest
investment shares interests minority
period-end rights statem
interests
（%） （%） ent
exceed
equity
obtained by
minority
shareholders
Development, production
Tsann Kuen and sales of small home
Sino-fo Manufactur
(Zhangzhou electronic appliance, new
reign Zhangzh e home 160,000,000.
) Enterprise USD style of electronic device, 120,000,000.00 0.00 75% 75% Yes 313,397,767.79 6,126,970.02 0.00
joint ou electronic 00
Co., light-industrial product, and
venture appliance
Ltd.(TKL) modern furniture and
relative modules
Star Travel
Limited
International
liability Travel Inbound tourism business;
(Xia Men) Xiamen 5,000,000.00 USD 5,000,000.00 0.00 100% 100% Yes 0.00 0.00 0.00
compan business domestic tourism business
Co.,Ltd.(TS
y
X)
Tsann Kuen
Development and production
(Zhangzhou Manufactur
Sino-fo of small home electronic
) South Port e home
reign Zhangzh appliance, new style of
Electronics electronic 5,000,000.00 CNY 3,750,000.00 0.00 56.25% 56.25% Yes 3,085,667.75 0.00 0.00
joint ou electronic device,
Enterprise appliance
venture light-industrial product, and
Co., Ltd.
modern furniture
(TKN)
Tsann Kuen Nonbus
(Zhangzhou iness
Secondary
) Profession Enterpr Zhangzh Secondary vocational
vocational 3,000,000.00 CNY 3,000,000.00 0.00 75% 75% Yes 0.00 0.00 0.00
and ise ou education
education
Technology Run by
Institute local
85
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(LTC) People
Engaging in household
appliances, calculators and
accessories, communication
equipment, electrical
equipment, office supplies
and related products
Shanghai
Limited (including kitchen supplies)
Canxing Sales of
liability Shangha the import, wholesale, retail
Trading home 4,950,000.00 CNY 4,950,000.00 0.00 56.25% 56.25% Yes 0.00 0.00 0.00
compan i and after-sales service;
Co.,Ltd electronic
y self-and agent all kinds of
(STD)
goods and technology
import and export,
production: roasted coffee
powder, daily use of the
wholesale, retail and other
sales (food is non-food way)
Wholesale, retail, general
merchandise, home
electronic appliance,
computer and its fitting
equipment, communication
Xiamen
Limited equipments, mechanical and
Canxing Sales of
liability 30,000,000.0 electronic equipments, office
Trading Xiamen home CNY 30,000,000.00 0.00 75% 75% Yes 0.00 0.00 0.00
compan 0 equipments, kitchen
Co.,Ltd. electronic
y appliance and related
(TSX3C)
complete product; Import or
export products or
technology, but those
products prohibit by the
Country are exempt..
Wholesale, retail, general
merchandise, home
electronic appliance,
computer and its fitting
Xiamen Star
Limited equipment, communication
Comgistic Sales of
liability 28,000,000.0 equipments, mechanical and
Trading Xiamen home CNY 28,000,000.00 0.00 75% 75% Yes 0.00 0.00 0.00
compan 0 electronic equipments, office
Co.,Ltd. electronic
y equipments, kitchen
(SCCX)
appliance and related
complete product; Import or
export products or
technology, but those
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
products prohibit by the
Country are exempt..
Investment business for
Hongkong
industry of home electronic
Brilliant Limited
appliance, receive trade
Leader liability Hongko Trade,
4,950,000.00 USD orders, agency procurement, 4,950,000.00 0.00 75% 75% Yes 0.00 0.00 0.00
Limited compan ng Investment
research and development
(Brilliant y
home electronic appliance,
Leader Ltd)
market research, etc.
Investment business for
Hongkong
industry of home electronic
Globe Limited
appliance, receive trade
Strong liability Hongko Trade,
50,000.00 USD orders, agency procurement, 50,000.00 0.00 75% 75% Yes 0.00 0.00 0.00
Limited compan ng Investment
research and development
(Globe y
home electronic appliance,
Strong Ltd)
market research, etc.
Production of monitor, LCD
TV, pendant lamp, table
PT. TSANN lamp, LED lamp, fluorescent
KUEN Limited lamp, dehumidifier, blender,
Manufactur
ZHANGZH liability Indonesi fruit juice mixer, mosquito
e of home 5,000,000.00 USD 4,000,000.00 0.00 75% 75% Yes 0.00 0.00 0.00
OU compan a killer, coffee pot, electric
electronic
INDONESI y hair dryer, electric fan,
A (TKI) electronic oven, microwave
oven, toaster, rice cooker,
electric iron and fryer
Limited
East Sino
liability Hongko Investment 57,993,000.0
Developmen HKD Investment 57,993,000.00 0.00 75% 75% Yes 0.00 0.00 0.00
compan ng company 0
t Limited
y
PT. STAR Production and sales of
Limited
COMGISTI Manufactur household appliances,
liability Indonesi
C e of home 7,500,000.00 USD electronics, light industrial 7,425,000.00 0.00 74.25% 74.25% Yes 305,858.33 0.00 0.00
compan a
INDONESI electronic products and modern office
y
A（SCI） supplies
Other notes to subsidiaries obtained by establishment and investment
.
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(2) Subsidiaries obtained by business combination under same control
Unit: RMB Yuan
Balance of
parent
company’s
The Includ
Actual equity after
proporti The ed in
amount of Other Deductible deducting the
Register Business Registered Currenc on of proportion consol Minority
Subsidiaries Type Business scope investments at essential minority difference that
ed place nature capital y holding of voting idated interest
the investment interests loss of minority
shares rights（%）statem
period-end interests exceed
（%） ent
equity obtained
by minority
shareholders
Manufac
Tsann Kuen Production and sales of
ture of
China Sino-for household appliances,
small
(Shanghai) eign Shangha electronics, light
househol 40,000,000.00 USD 25,000,000.00 0.00 62.5% 62.5% Yes 35,532,550.22 366,620.35 0.00
Enterprise joint i industrial products and
d
Co., Ltd. venture modern office supplies
applianc
(TKS) and relevant modules
es
Engage in domestic
Shanghai
Limited airline of civil air
Fanxin
liability Shangha Ticket transport sales agency
Airlines 5,500,000.00 CNY 4,630,000.00 0.00 75% 75% Yes 0.00 0.00 0.00
compan i agent business, except in
Service Co.,
y Hong Kong, Macao,
Ltd. (TSST)
and Taiwan regions
Inbound tourism
Star Travel business; outbound
Limited
International tourism business;
liability Travel
(Da Lian) Dalian 5,300,000.00 CNY domestic tourism 5,347,000.00 0.00 74.25% 74.25% Yes -73,585.53 15,786.45 0.00
compan business
Co.,Ltd. business; travel
y
(TSD) products research and
sales
Ticket agent(Engage in
Xiamen domestic airline of civil
Limited
Canxing air transport sales
liability Ticket
Airlines Xiamen 1,500,000.00 CNY agency business, 1,250,000.00 0.00 75% 75% Yes 0.00 0.00 0.00
compan agent
Service Co., except in Hong Kong,
y
Ltd.( TSXT) Macao, and Taiwan
regions)
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Notes of subsidiaries obtained by business combination under same control
(3) Subsidiaries obtained by business combination not under same control
Unit: RMB Yuan
Balance of
parent
company’s
equity after
deducting
Actual the
The The
amount of Other
Registered Business Registered Business proportion proportion Included in Minority
Deductible difference
Subsidiaries Type Currency investments essential
place nature capital scope of holding of voting consolidated interest
minority that loss of
at the investment statement interests minority
shares（%） rights（%）
period-end interests
exceed
equity
obtained by
minority
shareholders
Other notes of subsidiaries obtained by business combination not under same control
2. Special purpose entities or operating entities with control right formed by entrusted operation or lease
□ Applicable √ Inapplicable
Other explanation on special purpose entities or operating entities with control right formed by entrusted operation or lease:
3. Explanation on changes in consolidated scope
Explanation on changes in consolidated scope:
On 10 Mar. 2012, Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. and Sino Global Development Limited signed the Equity Transfer Agreement, with the latter transferring
100% equity interests of East Sino Development Limited (its wholly-funded subsidiary) to the former at the price of US$ 6.30 million. On 11 Jun. 2012, Tsann Kuen
(Zhangzhou) Enterprise Co., Ltd. completed the equity registration alteration formalities regarding its acquisition of equity interests of East Sino Development. This
transaction made a business combination under the same control and East Sino Development was consolidated by the Company since the transaction was concluded.
√ Applicable □ Inapplicable
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
The consolidate entities of the reporting period increased by one entity over that of last period, the reason
is as follows:
On 10 Mar. 2012, Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. and Sino Global Development Limited
signed the Equity Transfer Agreement, with the latter transferring 100% equity interests of East Sino
Development Limited (its wholly-funded subsidiary) to the former at the price of US$ 6.30 million. On 11
Jun. 2012, Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. completed the equity registration alteration
formalities regarding its acquisition of equity interests of East Sino Development. This transaction made a
business combination under the same control and East Sino Development was consolidated by the
Company since the transaction was concluded.
The consolidate entities of the reporting period decreased by * entity over that of last period, the reason is
as follows:
4. Subsidiaries that newly and no longer combined into and not combined into consolidation scope in
the reporting period
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted
operation or lease that newly included in the consolidated scope
Unit: RMB Yuan
Name Closing net assets Net profit in current period
East Sino Development Limited 29,204,975.62 -6,016,211.35
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted
operation or lease that not longer included in the consolidated scope in the reporting period
Unit: RMB Yuan
Net profit from year-begin to
Name Net asset at the disposal date
disposal date
Other notes to entities no longer combined into and not combined into consolidation scope:
5. Business combination under same control during the reporting period
Unit: RMB Yuan
Cash flow arising
Judgment basis of The consolidated The consolidated
from operating
business Actual controller of income from net profit from
The combined party activities between
combination under the same control period-begin to period-begin to
period-begin and
the same control combination date combination date
combination date
Under the same
East Sino Development
untimate controlling Wu Cankun 20,444,073.56 -6,016,211.35 -17,582,609.89
Limited
company
Other notes to business combination under same control:
6. Business combination not under same control during the reporting period
Unit: RMB Yuan
The combined party Amount of goodwill Calculation method of goodwill
Notes of business combination not under same control during the reporting period
7. Subsidiaries reduced by selling equities without control right during the reporting period
Name of subsidiary Disposal date Recognition method of gains and losses
Notes of subsidiaries reduced by selling equities without control right during the reporting period
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
8. The counter purchases in the reporting period
Calculation method of goodwill
Judgment basis of counter Recognition method of recognized or included into
The backdoor party
purchase combination costs current gains and losses in the
combination
Other notes to counter purchases:
9. Mergers in the reporting period
Unit: RMB Yuan
Type of merger Main assets merged in Main liabilities merged in
Mergers under the same control Item Amount Item Item
Mergers not under the same control Item Amount Item Amount
Other notes to mergers:
10. Exchange rates of major items in financial statements for foreign entities
Within the consolidated financial statement, Brilliant Leader Ltd and Globe Strong Ltd were the oversea
business entities, the functional currency adopt HKD. The applicable exchange rate is HKD/CNY 0.81522
(the balance sheet date spot rate) for assets and liabilities items; elements of owner’s equity of financial
statements except undistributed profit, are translated into the functional currencies using the exchange rate
is HKD/CNY 0.85447 (the transaction-dates spot exchange rates); elements of income and expenses of
financial statements denominated in foreign currencies are translated into the functional currency using the
spot exchange rate of HKD/CNY at the transaction-date; foreign exchange differences arising from
treatments described in the above paragraph are separately presented in the financial statements as an
element of owners’ equity.
Within the consolidated financial statement, East Sino Development Limited was an oversea business
entity, the functional currency adopts HKD. The applicable exchange rate is HKD/CNY 0.81522 (the
balance sheet date spot rate) for assets and liabilities items; elements of owner’s equity of financial
statements except undistributed profit, are translated into the functional currencies using the exchange rate
is HKD/CNY 0.8571 (the transaction-dates spot exchange rates); elements of income and expenses of
financial statements denominated in foreign currencies are translated into the functional currency using the
spot exchange rate of HKD/CNY at the transaction-date; foreign exchange differences arising from
treatments described in the above paragraph are separately presented in the financial statements as an
element of owners’ equity.
Within the consolidated financial statement, TKI was an oversea business entity, the functional currency
adopt IDR. The applicable exchange rate is CNY/IDR 1,442.381 (the balance sheet date spot rate) for
assets and liabilities items; elements of owner’s equity of financial statements except undistributed profit,
are translated into the functional currencies using the exchange rate is CNY/IDR 1,483.680 (the
transaction-dates spot exchange rates); elements of income and expenses of financial statements
denominated in foreign currencies are translated into the functional currency using the spot exchange rate
of CNY/IDR at the transaction-date; foreign exchange differences arising from treatments described in the
above paragraph are separately presented in the financial statements as an element of owners’ equity.
Within the consolidated financial statement, PT. STAR COMGISTIC INDONESIA was an oversea business
entity, the functional currency adopt IDR. The applicable exchange rate is CNY/IDR 1,442.381 (the
balance sheet date spot rate) for assets and liabilities items; elements of owner’s equity of financial
statements except undistributed profit, are translated into the functional currencies using the exchange rate
is CNY/IDR 1,439.562 (the transaction-dates spot exchange rates); elements of income and expenses of
financial statements denominated in foreign currencies are translated into the functional currency using the
spot exchange rate of CNY/IDR at the transaction-date; foreign exchange differences arising from
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
treatments described in the above paragraph are separately presented in the financial statements as an
element of owners’ equity.
(Ⅶ) Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Closing balance Opening balance
Item Amount in foreign Exchange Amount in foreign
Amount in RMB Exchange rate Amount in RMB
currency rate currency
Cash: -- -- 756,210.01 -- -- 1,160,074.80
RMB -- -- 331,232.36 -- -- 462,206.19
HKD 27,091.60 0.81522 22,085.61 30,221.20 0.8107 24,500.33
USD 29,781.37 6.3249 188,364.20 32,609.23 6.3009 205,467.49
JPY 294,084.80 0.079648 23,423.20 366,823.80 0.0811 29,750.51
IDR 85,702,589.84 0.000674 57,759.82 468,765,082.44 0.0007 324,569.01
CHF 7.00 6.5014 45.51 7.00 6.7085 46.96
EUR 16,646.48 7.871 131,024.44 13,646.48 8.1625 111,389.39
GBP 3.13 9.8179 30.73 3.13 9.7116 30.40
HUF 81,016.00 0.0277 2,244.14 81,016.00 0.0261 2,114.52
Bank deposit: -- -- 1,030,114,811.75 -- -- 704,972,047.30
RMB -- -- 503,466,124.04 -- -- 477,340,456.81
HKD 3,571,828.14 0.81522 2,911,825.74 111.52 0.8107 90.41
USD 81,856,237.35 6.3249 517,732,515.63 33,536,895.14 6.3009 211,312,622.58
JPY 43,198,671.00 0.079648 3,440,687.74 140,166,876.00 0.0811 11,367,954.14
EUR 2,163.94 7.871 17,032.37 276,974.73 8.1625 2,260,806.23
IDR 3,778,377,195.47 0.000674 2,546,626.23 3,882,397,220.82 0.0007 2,690,117.13
Other monetary funds: -- -- 19,962.10 -- -- 0.00
RMB -- -- 19,962.10 -- --
Total -- -- 1,030,890,983.86 -- -- 706,132,122.10
Special explanation shall be made for the accounts limited by being mortgaged, pledged or frozen,
deposited overseas or with potential collecting risks:
2. Trading financial assets
(1) Trading financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Trading bonds investment
Trading equity instruments investment
The financial assets which are measured at their fair values and the
variation of which is recorded into the profits and losses of the
current period
Derivative financial assets 0.00 4,636,053.22
Hedging instruments
Others
Total 0.00 4,636,053.22
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(2) Trading financial assets with realizable limit
Unit: RMB Yuan
Trading restriction or other significant limits in
Item Closing balance
realization
(3) Hedging instruments and notes to relevant hedging transaction
3. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance bill 4,200,000.00 2,979,552.00
Commercial acceptance bill 0.00 0.00
Total 4,200,000.00 2,979,552.00
(2) Notes receivable pledged at period-end
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Total -- -- 0.00 --
Notes:
(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract
or agreement, and undue notes endorsed to other parties at the end of the period
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Total -- -- 0.00 --
Notes:
Undue notes endorsed to other parties by the Company
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Total -- -- 0.00 --
Notes:
Notes of commercial acceptance bill that already discounted or pledged.
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
4. Dividends receivable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Dividends receivable
0.00 0.00 0.00 0.00
aging less than one year
Of which:
Dividends receivable
0.00 0.00 0.00 0.00
aging over one year
Of which: -- -- -- --
Total 0.00 0.00 0.00 0.00
Notes:
5. Interest receivable
(1) Interest receivable
Unit: RMB Yuan
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Interest of term deposit 1,646,355.63 2,796,795.51 1,793,738.81 2,649,412.33
Banking interest income 0.00 1,152,069.44 0.00 1,152,069.44
Total 1,646,355.63 3,948,864.95 1,793,738.81 3,801,481.77
(2) Overdue interest
Unit: RMB Yuan
Borrowing entity Overdue days (day) Amount of overdue interest
Total --
(3) Notes to interest receivable
6. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
94
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Proportion Proportion Proportion
Amount Amount Amount Amount Proportion (%)
(%) (%) (%)
Accounts receivable with
significant single amount and
0.00 0% 0.00 0% 0.00 0% 0.00 0%
individually withdrawn bad
debt provision
Accounts receivable for which bad debt provisions are made on the group basis
240,845,592.1 366,696,28
Aging group 79.14% 4,925,118.75 2.04% 87% 3,870,170.19 1.06%
8 2.78
54,802,068.
Related party group 63,463,872.48 20.86% 0.00 0% 13% 0.00 0%
00
304,309,464.6 421,498,35
Subtotal of group 100% 4,925,118.75 1.62% 100% 3,870,170.19 0.92%
6 0.78
Accounts receivable with
insignificant single amount and
0.00 0% 0.00 0% 0.00 0% 0.00 0%
individually withdrawn bad
debt provision
304,309,464.6 421,498,35
Total -- 4,925,118.75 -- -- 3,870,170.19 --
6 0.78
Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision
√Applicable □Inapplicable
Unit: RMB Yuan
Withdrawing
Content of accounts receivable Book balance Bad debt provision Withdrawal reason
proportion (%)
Total 0.00 0.00 --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Aging Book balance Provision for bad Book balance Provision for bad
Amount Proportion debts Amount Proportion debts
Within 1 year
Including: -- -- -- -- -- --
1-90 days 224,600,807.12 93.26% 0.00 349,357,257.44 95.27% 0.00
91-180 days 7,857,968.23 3.26% 785,787.82 12,241,646.46 3.34% 1,224,164.65
181-270 days 2,996,288.25 1.24% 899,090.48 3,341,753.11 0.91% 1,002,525.93
271-365 days 4,184,239.31 1.74% 2,033,951.18 224,292.33 0.06% 112,146.17
Subtotal of within
239,639,302.91 99.5% 3,718,829.48 365,164,949.34 99.58% 2,338,836.75
1 year
1-2 years 425,124.09 0.18% 425,124.09 661,593.74 0.18% 661,593.74
2-3 years 127,463.87 0.05% 127,463.87 622,150.00 0.17% 622,150.00
Over 3 years 653,701.31 0.27% 653,701.31 247,589.70 0.07% 247,589.70
3 to 4 years
4 to 5 years
Over 5 years
Total 240,845,592.18 -- 4,925,118.75 366,696,282.78 -- 3,870,170.19
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
□Applicable √Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision
□Applicable √Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
□Applicable √Inapplicable
(2) Accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
Recognition basis of Reversed or collected
Content of accounts Reversed or collected Reversed or collected
original bad debt amount of the accrued
receivable reason amount
provision bad debt provision
Total -- -- --
The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single amount
but individually made impairment test at the end of reporting period:
Withdrawing proportion
Content Book balance Bad debt provision Reason
(%)
Total -- --
Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks
characteristics:
(3) The write-off accounts receivable
Unit: RMB Yuan
Whether arising
Nature of accounts
Name of entity Write-off time Write-off amount Write-off reason from related party
receivable
transaction or not?
Small appliances
Payment for bad
business division of 12,949.89 Irrecoverable No
quality
Guangdong TCL
DSG International Payment for bad
17,415.59 Irrecoverable No
Sourcing quality
Total -- -- 30,365.48 -- --
Notes of the write-off:
(4) Particulars about accounts receivable due to shareholders holding 5% (including 5%) voting
rights of the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Name of entity
Book balance Withdrawal amount Book balance Withdrawal amount
STAR COMGISTIC CAPITAL
17,069,111.23 0.00 9,524,412.88 0.00
CO., LTD
Total 17,069,111.23 0.00 9,524,412.88 0.00
(5) Information of top 5 accounts receivable:
Unit: RMB Yuan
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
The relationship with the
Name of entity Amount Aging Proportion
Company
Applica-USA Non-related relationship 55,327,702.43 Within 1 year 18.18%
Tsann Kuen Japan Co.,
Related party 46,310,093.42 Within 1 year 15.22%
Ltd.
SEB Non-related relationship 17,111,007.97 Within 1 year 5.62%
RussellHobbs Non-related relationship 17,004,109.59 Within 1 year 5.59%
SensioInc. Non-related relationship 16,937,130.41 Within 1 year 5.57%
Total -- 152,690,043.82 -- 50.18%
(6) The amounts due from related parties
Unit: RMB Yuan
The relationship with the
Name of entity Amount Proportion
Company
Tsann Kuen Japan Co., Ltd. Same ultimate holding company 46,310,093.42 15.22%
The company directly controlled
Thermaster Electronic
by the key management and 9,990.00 0%
(Xiamen) Ltd.
closed family members
STAR COMGISTIC
Ultimate holding company 17,069,111.23 5.61%
CAPITAL CO., LTD
STAR TRAVEL SERVICE
Same ultimate holding company 73,337.83 0.02%
CORP.
Xiamen Tsann Kuen Trading Controlled by same ultimate
1,340.00 0%
Co., Ltd. controller
Total -- 63,463,872.48 20.85%
(7) Information of accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination of
Item Amount of termination
recognition
Total
(8) If securitization is carried out on accounts receivable as the underlying assets, please list amount
of assets and liabilities arising from further involvement
Unit: RMB Yuan
Item Period-end
Assets:
Subtotal of assets
Liabilities:
Subtotal of liabilities
7. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB Yuan
97
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Closing balance Opening balance
Category Book balance Provision for doubtful debts Book balance Provision for doubtful debts
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Other accounts receivable that
is individually significant and
0.00 0% 0.00 0% 0.00 0% 0.00 0%
provisions for bad debts
individually
Other accounts receivable that provisions for bad debts by group
Aging group 22,604,262.96 100% 1,312,875.65 5.81% 29,410,960.41 89.95% 1,140,329.33 3.88%
Related party group 0.00 0% 0.00 0% 51,557.00 0.16% 0.00 0%
Subtotal of group 22,604,262.96 100% 1,312,875.65 5.81% 29,462,517.41 90.11% 1,140,329.33 3.87%
Other accounts receivable
with insignificant single
0.00 0% 0.00 0% 3,233,788.00 9.89% 97,623.00 3.02%
amount and individually
withdrawn bad debt provision
Total 22,604,262.96 -- 1,312,875.65 -- 32,696,305.41 -- 1,237,952.33 --
Notes for categories of other accounts receivable:
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
□Applicable √Inapplicable
In the group, other accounts receivable that provisions for bad debts by aging analysis:
√Applicable □Inapplicable
Unit: RMB Yuan
Period-end Period-begin
Book balance Book balance
Aging Provision for bad
Proportio Proportio Provision for bad debts
Amount debts Amount
n n
Within 1 year
Including:
16,509,551.87 73.04% 352,762.07 27,957,080.42 95.05% 364,813.46
1-90 days
1,629,532.51 7.21% 55,409.48 605,113.99 2.06% 60,511.41
91-180 days
1,322,742.06 5.85% 138,689.46 118,030.04 0.4% 35,409.00
181-270 days
561,480.35 2.48% 46,403.13 102,281.00 0.35% 51,140.50
271-365 days
Subtotal of within 1 year 20,023,306.79 88.58% 593,264.14 28,782,505.45 97.86% 511,874.37
1-2 years 2,242,719.18 9.92% 438,030.94 599,409.49 2.04% 599,409.49
2-3 years 311,236.99 1.38% 260,080.57 5,045.47 0.02% 5,045.47
Over 3 years 27,000.00 0.12% 21,500.00 24,000.00 0.08% 24,000.00
3 to 4 years
4 to 5 years
Over 5 years
Total 22,604,262.96 -- 1,312,875.65 29,410,960.41 -- 1,140,329.33
In the group, other accounts receivable that provisions for bad debts by balance percentage:
□Applicable √Inapplicable
In the group, other accounts receivable that provisions for bad debts by other methods:
□Applicable √Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
□Applicable √Inapplicable
(2) Information of other accounts receivable reversed or recovered in the reporting period
Unit: RMB Yuan
98
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Reason for reversed or Basis for determination Accrued amount before Amount of reversed or
Other accounts receivable
recovered of bad debts provision reversal or recovery recovered
Total -- -- 0.00 --
Withdrawal of closing individually significant or insignificant but provisions for bad debts individually accounts receivable:
Content Book balance Provision for bad debts Withdrawal percentage Reason
Total -- --
Notes of individually insignificant but was of big risk after grouped by credit risk other accounts receivable:
(3) Information of other accounts receivable written off in the reporting period
Unit: RMB Yuan
Whether arising from
Nature of other
Name of company Write off date Write off amount Write off reason related party
accounts receivable
transactions or not
Employee (Liu Employee
91,653.00 Irrecoverable No
Yuanshi) borrowings
Employee (Hong CCC certification
7,700.00 Irrecoverable No
Yinwei) loan
Total -- -- 99,353.00 -- --
Notes of written-off of other accounts receivable:
(4) Other accounts receivable is due from shareholders with more than 5% (including 5%) of the
voting shares of the Company
□Applicable √Inapplicable
(5) Nature or details of other significant accounts receivable
Unit: RMB Yuan
Nature or details of the
Name of entity Amount Proportion of the total (%)
amount
Total 0.00 -- 0%
Notes:
99
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(6) Information of top five other accounts receivable
Unit: RMB Yuan
Relationship with the Proportion of the total
Name of entity Amount Aging
Company (%)
Zhangzhou Haikun Metal
Non-related relationship 1,116,260.78 1-90 days 4.94%
Products Co., Ltd.
CHINA AVIATION
XINGANG Non-related relationship 1,080,000.00 1-2 years 4.78%
GUARANTY CO.,LTD.
Sensio Inc. Non-related relationship 1,046,040.99 1-90 days 4.63%
Zhangzhou Boer Metal
Non-related relationship 963,382.62 1-360 days 4.26%
Product Co., Ltd
Fujian Longhai Power
Non-related relationship 944,477.53 Within 30 days 4.18%
Supply Co., Ltd.
Total -- 5,150,161.92 -- 22.79%
(7) Information of the amounts due from related parties
Unit: RMB Yuan
Name of entity Relationship with the Company Amount Proportion
0.00 0%
Total -- 0.00 0%
(8) Information of other accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination of
Item Amount of termination
recognition
Total 0.00 0.00
(9) If securitization is carried out on other accounts receivable as the underlying assets, please list
amount of assets and liabilities arising from further involvement
Unit: RMB Yuan
Item As at 30 Jun. 2012
Assets:
Subtotal of assets 0.00
Liabilities:
Subtotal of liabilities 0.00
100
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
8. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year 5,676,311.63 95.86% 6,015,676.71 99.8%
1 year to 2
245,100.00 4.14% 12,225.00 0.2%
years
2 years to 3
years
Over 3 years
Total 5,921,411.63 -- 6,027,901.71 --
Notes of aging of prepayment:
(2) Information of the top 5 prepayment
Unit: RMB Yuan
Relationship with the
Name of entity Amount Time Reason for unsettled
Company
Yuyao Shenghua Hasn’t completed
Non-related relationship 809,620.10 28 Jun. 2012
Electronics Co., Ltd. execution
Shaoxing Dayi Hasn’t completed
Non-related relationship 707,485.47 28 Jun. 2012
Electronics Co., Ltd. execution
Mitsui Bussan Plastics Hasn’t completed
Non-related relationship 320,198.06 19 Jun. 2012
Trade CO., LTD execution
Hasn’t completed
Xiamen University Non-related relationship 272,000.00 19 Mar. 2012
execution
Xiamen Smartcom Hasn’t completed
Non-related relationship 168,320.00 9 Mar. 2012
Technology Co., Ltd. execution
Total -- 2,277,623.63 -- --
Notes of important companies of prepayment:
(3) Information about amount due from shareholders with more than 5% (including 5%) of the
voting shares of the Company in prepayment
□Applicable √Inapplicable
(4) Notes of prepayment
101
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9. Inventory
(1) Category
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment of Impairment of
Book balance Book value Book balance Book value
inventories inventories
Raw materials 138,897,839.50 16,833,606.88 122,064,232.62 155,190,710.67 16,079,515.78 139,111,194.89
Construction
15,268,329.04 0.00 15,268,329.04 27,731,700.45 0.00 27,731,700.45
contract assets
Inventory goods
Turnover material
Consumable
biological assets
Self-made
semi-finished 31,339,089.30 861,656.52 30,477,432.78 27,812,523.41 2,567,577.78 25,244,945.63
product
Finished product 117,006,180.12 6,089,950.13 110,916,229.99 119,584,715.13 2,169,904.12 117,414,811.01
Low-value
2,188,740.71 0.00 2,188,740.71 2,543,108.59 0.00 2,543,108.59
consumable product
Materials in transit 5,181,931.11 0.00 5,181,931.11 7,539,131.63 0.00 7,539,131.63
Total 309,882,109.78 23,785,213.53 286,096,896.25 340,401,889.88 20,816,997.68 319,584,892.20
(2) Impairment of inventories
Unit: RMB Yuan
Withdrawal in Decrease in reporting period
Category Opening balance Closing book balance
reporting period Reversal Written off
Raw materials 16,079,515.78 1,714,436.65 960,345.55 0.00 16,833,606.88
Construction contract
0.00 0.00
assets
Inventory goods
Turnover material
Consumable biological
assets
Self-made
2,511,885.13 0.00 1,650,228.61 0.00 861,656.52
semi-finished product
Finished product 2,225,596.77 3,864,353.36 0.00 0.00 6,089,950.13
Total 20,816,997.68 5,578,790.01 2,610,574.16 0.00 23,785,213.53
(3) Details of provision for falling price of inventories
Proportion of reversal of
Basis on provision for falling
Item Reasons for reversal provision for impairment of
price of inventories
inventories to closing balance
Raw materials
Inventory goods
Construction contract assets
Turnover material
Consumable biological assets
Notes of inventory:
102
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
10. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
0.00 0.00
Total 0.00 0.00
Notes of other current assets:
11. Available-for-sale financial assets
(1) Information of available-for-sale financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Available-for-sale bonds
Available-for-sale equity instruments
Others
Total 0.00 0.00
In the reporting period, the Company reclassified the held-to-maturity investment into available-for-sale
financial assets, a total of RMB0.00 was reclassified, which takes 0% of total matured investment before
reclassification.
Notes of available-for-sale financial assets:
(2) Long-term liability investment of available-for-sale financial assets
Unit: RMB Yuan
Accrued
Initial Interest in the accounts
Opening Closing
Item Category Book balance investment Matured date reporting receivable or
balance balance
cost period received
interest
Total -- -- --
Notes of long-term liability investment of available-for-sale financial assets:
12. Held-to-maturity investment
(1) Information
Unit: RMB Yuan
Item Closing book balance Opening book balance
Total 0.00 0.00
Notes of held-to-maturity investment:
103
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(2) Information of held-to-maturity investment sold in the reporting period but was not matured
Unit: RMB Yuan
Item Amount Percentage of the investment amount before sales
Total --
Notes of undue held-to-maturity investment sold in the reporting period:
13. Long-term accounts receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Financing leases
Including: unrealized financing
gains
Installment sales
Installment offering service
Others 46,290,436.53 49,751,452.73
Total 46,290,436.53 49,751,452.73
14. Investment to joint ventures and associated enterprises
Unit: RMB Yuan
Percenta Voting Total
ge of percenta operatio
Nature Total Net
Name Registra Legal Nature Register holding ge of Total Net n
of Currenc closing profit in
of tion represen of ed shares the closing closing revenue
enterpri y liabilitie reportin
investee place tative business capital of the Compan assets assets in
ses s g period
Compan y in reportin
y investee g period
I. Joint ventures
II. Associated enterprises
Notes if significant differences exist between the important accounting policies and accounting estimations of joint ventures,
associated enterprises and the Company:
15. Long-term equity investment
104
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(1) List of long-term equity investment
Unit: RMB Yuan
Explanation for
indifferences
Withdrawn
between the
Share holding Voting impairment Cash bonus in
Accounting Initial Opening Increase/decrea share holding Impairment
Investee Closing balance percentage in percentage in provision in the the reporting
method investment cost balance se percentage and provision
investee investee reporting period
voting
period
percentage in
investee
Xiamen
Institute of
Foreign 40,000.00 40,000.00 0.00 40,000.00 1.48% 1.48% 0.00 0.00 7,062.00
Investment
Enterprise
Total -- 40,000.00 40,000.00 0.00 40,000.00 -- -- -- 0.00 0.00 7,062.00
105
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(2) Information of the limitation on the capability to transfer capital to investee
Unit: RMB Yuan
Item that with limitation on the capability Investment losses unrecognized in current
Reason for limitation
to transfer capital to investee period
Notes of long-term equity investment:
16. Investment property
(1) Investment property calculated by cost
√Applicable □Inapplicable
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening book balance Closing book balance
period reporting period
I. Total original book
146,594,664.32 401,245.61 0.00 146,995,909.93
value
1. Houses and
117,334,086.81 401,245.61 0.00 117,735,332.42
buildings
2. Land use right 29,260,577.51 0.00 0.00 29,260,577.51
II. Accumulated
depreciation and 81,009,345.86 3,948,719.89 0.00 84,958,065.75
amortization
1. Houses and
71,022,264.10 3,652,019.46 0.00 74,674,283.56
buildings
2. Land use right 9,987,081.76 296,700.43 0.00 10,283,782.19
III. Book value of
65,585,318.46 0.00 0.00 62,037,844.18
investment property
1. Houses and
46,311,822.71 43,061,048.86
buildings
2. Land use right 19,273,495.75 18,976,795.32
IV. Accumulated
impairment provision 0.00 0.00 0.00 0.00
of investment property
1. Houses and
0.00 0.00 0.00 0.00
buildings
2. Land use right 0.00 0.00 0.00 0.00
V. Book value of
65,585,318.46 0.00 0.00 62,037,844.18
investment property
1. Houses and
46,311,822.71 43,061,048.86
buildings
2. Land use right 19,273,495.75 18,976,795.32
Unit: RMB Yuan
Reporting period
Depreciation and amortization amount 3,948,719.89
Impairment provision of investment property 0.00
(2) Investment property calculated by fair value
□Applicable √Inapplicable
Notes of investment property that altered calculated mode and failed to accomplish certification of property, and notes of
106
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
reason that the fail accomplish and estimated accomplish date:
17. Fixed assets
(1) Fixed assets details
Decrease in the reporting
Item Opening book balance Increase in the reporting period Closing book balance
period
I. Total original book value 1,882,685,980.11 16,764,821.41 174,890,072.91 1,724,560,728.61
Including: Houses and buildings 100,287,293.20 286,594.67 6,289,933.41 94,283,954.46
Machineries 330,508,859.28 4,242,115.59 151,792,964.46 182,958,010.41
Vehicles 24,430,483.15 182,393.57 1,646,594.82 22,966,281.90
Electronics, module and others 1,367,654,529.06 12,004,833.65 14,010,696.29 1,365,648,666.42
Improvement expense of fixed
59,804,815.42 48,883.93 1,149,883.93 58,703,815.42
assets
Increase in reporting Withdrawal in reporting Decrease in the reporting
-- Opening book balance Closing book balance
period period period
II. Accumulated depreciation 1,522,104,824.47 0.00 34,845,498.61 111,500,250.12 1,445,450,072.96
Including: Houses and buildings 36,406,491.03 0.00 1,054,155.47 162,506.17 37,298,140.33
Machineries 194,917,674.49 0.00 6,696,972.08 100,149,300.26 101,465,346.31
Vehicles 23,925,101.93 0.00 96,850.92 1,475,972.71 22,545,980.14
Electronics, module and others 1,233,697,496.83 0.00 24,113,703.70 9,133,641.43 1,248,677,559.10
Improvement expense of fixed
33,158,060.19 0.00 2,883,816.44 578,829.55 35,463,047.08
assets
-- Opening book balance -- Closing book balance
III. The net book value of fixed
360,581,155.64 -- 279,110,655.65
assets
Including: Houses and buildings 63,880,802.17 -- 56,985,814.13
Machineries 135,591,184.79 -- 81,492,664.10
Vehicles 505,381.22 -- 420,301.76
Electronics, module and others 133,957,032.23 -- 116,971,107.32
Improvement expense of fixed
26,646,755.23 -- 23,240,768.34
assets
IV. Total impairment provision 55,956,730.69 -- 52,878,522.54
Including: Houses and buildings 0.00 -- 0.00
Machineries 27,602,824.40 -- 27,586,457.67
Vehicles 9,559.79 -- 9,559.79
Electronics, module and others 27,005,884.74 -- 23,987,376.60
Improvement expense of fixed
1,338,461.76 -- 1,295,128.48
assets
V. Total book value of fixed assets 304,624,424.95 -- 226,232,133.11
Including: Houses and buildings 63,880,802.17 -- 56,985,814.13
Machineries 107,988,360.39 -- 53,906,206.43
Vehicles 495,821.43 -- 410,741.97
Electronics, module and others 106,951,147.49 -- 92,983,730.72
Improvement expense of fixed
25,308,293.47 -- 21,945,639.86
assets
Depreciation amount of this reporting period was RMB 34,845,498.61, original value of RMB 1,245,595.68 was transferred
into fixed assets from construction project.
107
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(2) Temporary idle fixed assets
Unit: RMB Yuan
Item Original book value Accrued depreciation Impairment provision Net book value Note
Houses and buildings 0.00
Machineries 72,309,476.72 31,392,154.12 29,302,918.24 11,614,404.36
Vehicles 310,255.43 300,695.64 9,559.79 0.00
Electronics, module and
54,118,972.54 32,329,537.77 21,060,603.71 728,831.06
others
Improvement expense of
769,902.33 212,406.47 488,265.46 69,230.40
fixed assets
(3) Fixed assets leased in from financing lease
□Applicable √Inapplicable
(4) Fixed assets leased out from operation lease
√Applicable □Inapplicable
Unit: RMB Yuan
Category Closing book value
Houses and buildings
Machineries 3,094,239.63
Vehicles 0.00
Electronics, module and others 48,495.05
(5) Information of hold-for-sale fixed assets at period-end
Unit: RMB Yuan
Item Book value Fair value Estimated disposal cost Estimated settle date
Electronics, module and
17,440.38 92,500.00 1,778.85 31 Jul. 2012
others
(6) Information of fixed assets failed to accomplish certification of property
Item Reason Estimated time of completion
Notes of fixed assets:
18. Construction in progress
(1)
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Modules work in progress 2,998,971.88 0.00 2,998,971.88 2,023,801.59 0.00 2,023,801.59
Decoration project 8,203,428.58 0.00 8,203,428.58 6,713,866.52 0.00 6,713,866.52
Power room project 0.00 0.00 0.00 2,991,529.49 0.00 2,991,529.49
Total 11,202,400.46 0.00 11,202,400.46 11,729,197.60 0.00 11,729,197.60
108
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(2) Changes in significant construction in progress
Unit: RMB Yuan
Including:
Increase in Project input Capitalization
Name of Opening Transferred to Other Project Capitalization capitalization Source of Closing
Budget reporting percentage of of interest rate
project balance fixed assets decrease process of interest of interest funding balance
period budget (%)
this period
Modules work Partly
5,691,419.40 2,023,801.59 1,991,996.79 916,905.93 99,920.57 71% 0.00 0.00 0% Self-owned 2,998,971.88
in progress completed
Part of the
Decoration
12,276,573.66 6,713,866.52 4,078,027.76 328,689.75 2,259,775.95 88% project has 0.00 0.00 0% Self-owned 8,203,428.58
project
completed
Power room The project
4,514,412.00 2,991,529.49 95,842.47 0.00 3,087,371.96 68% 0.00 0.00 0% Self-owned 0.00
project has completed
Total 22,482,405.06 11,729,197.60 6,165,867.02 1,245,595.68 5,447,068.48 -- -- 0.00 0.00 -- -- 11,202,400.46
Notes of changes in construction in progress:
109
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(3) Impairment provision of construction in progress
Unit: RMB Yuan
Increase in reporting Decrease in Reason for
Item Opening balance Closing balance
period reporting period withdrawal
Total 0.00 0.00 --
(4) Information of procedures of significant construction in progress
Item Process of the project Remark
(5) Notes of construction in progress
19. Engineering materials
Unit: RMB Yuan
Increase in Decrease in
Item Opening balance Closing balance
reporting period reporting period
Total 0.00 0.00 0.00 0.00
Notes of engineering materials:
20. Clearance of fixed assets
Unit: RMB Yuan
Reason for transferring to
Item Opening book value Closing book value
clearance
Total 0.00 0.00 --
Notes of clearance process of fixed assets with a clearance term of over 1 year since the transfer into fixed assets:
21. Productive biological assets
(1) Calculated by cost
□Applicable √Inapplicable
(2) Calculated by fair value
□Applicable √Inapplicable
110
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
22. Oil and gas assets
Unit: RMB Yuan
Increase in reporting Decrease in reporting
Item Opening book balance period Closing book balance
period
I. Total original book value 0.00 0.00 0.00 0.00
1. Property rights of proved
mining area
2. Property rights of
unproved mining area
3. Well and relevant
facilities
II. Total accumulated
0.00 0.00 0.00 0.00
depreciation
1. Property rights of proved
mining area
2. Well and relevant
facilities a
III. Total accumulated oil
0.00 0.00 0.00 0.00
and gas assets depreciation
1. Property rights of proved
mining area
2. Property rights of
unproved mining area
3. Well and relevant
facilities
IV. Total book value of oil
0.00 0.00 0.00 0.00
and gas assets
1. Property rights of proved
mining area
2. Property rights of
unproved mining area
3. Well and relevant
facilities
Notes of oil and gas assets:
111
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
23. Intangible assets
(1) Information
Unit: RMB Yuan
Increase in reporting
Item Opening balance Decrease in reporting period Closing balance
period
I. Total original book
27,865,002.04 0.00 398,797.99 27,466,204.05
value
Land use rights 12,372,357.70 0.00 398,797.99 11,973,559.71
Software of information
15,492,644.34 0.00 0.00 15,492,644.34
system
II. Accumulative
12,546,289.87 1,163,945.14 0.00 13,710,235.01
amortization
Land use rights 385,916.53 216,261.58 0.00 602,178.11
Software of information
12,160,373.34 947,683.56 0.00 13,108,056.90
system
III. Total net book value of
15,318,712.17 0.00 0.00 13,755,969.04
intangible assets
Land use rights 11,986,441.17 11,371,381.60
Software of information
3,332,271.00 2,384,587.44
system
IV. Total impairment
0.00 0.00 0.00 0.00
provision
Land use rights 0.00 0.00 0.00 0.00
Software of information
0.00 0.00 0.00 0.00
system
Total book value of
15,318,712.17 0.00 0.00 13,755,969.04
intangible assets
Land use rights 11,986,441.17 11,371,381.60
Software of information
3,332,271.00 2,384,587.44
system
Amortization was of 1,163,945.14 in reporting period.
(2) Company development expense
Unit: RMB Yuan
Decrease in the reporting period
Increase in the Recorded into
Item Opening amount Recognized as Closing amount
reporting period current gains and
intangible assets
losses
Expense on internal
35,058,310.24 35,058,310.24
R&D projects
Total 0.00 35,058,310.24 35,058,310.24 0.00 0.00
Development expense percentage of total expenditure of R&D projects in the reporting period. 100%
Percentage intangible assets arising from inner R&D of the Company of closing book value of intangible assets.
Notes of R&D projects of the Company, those that includes individual value of more than RMB 1 million and recognized
with a basis of assessed value, please disclose name of evaluation authority and method of evaluation:
(3) Information of intangible assets that failed to accomplish certification of property
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24. Goodwill
Unit: RMB Yuan
Name of investee or event that Increase in the Decrease in the Impairment provision
Opening balance Closing balance
generated goodwill reporting period reporting period at period-end
TSST 71,870.08 0.00 0.00 71,870.08 71,870.08
TSD 800,109.01 0.00 0.00 800,109.01 800,109.01
TSXT 125,000.00 0.00 0.00 125,000.00 125,000.00
Total 996,979.09 0.00 0.00 996,979.09 996,979.09
Notes of test method of goodwill impairment and impairment withdrawal method:
25. Long-term amortization expense
Unit: RMB Yuan
Reason for other
Item Opening balance Increase Amortization balance Other decrease Closing balance
decrease
Telecommunications
37,000.00 1,420,000.00 179,000.02 1,277,999.98
engineering
SUN computer
41,666.68 0.00 41,666.68 0.00
service fees
Internet charges 61,152.00 0.00 52,416.00 8,736.00
Houses and buildings
6,726,907.21 1,159,558.00 1,002,511.20 6,883,954.01
renovation expenses
Landscape
113,042.04 0.00 16,149.00 96,893.04
engineering
Total 6,979,767.93 2,579,558.00 1,291,742.90 0.00 8,267,583.03 --
Notes:
26. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets and deferred income tax liabilities are not listed as the net value after
offset
√Applicable □Inapplicable
Recognized deferred income tax assets and deferred income tax liabilities:
Unit: RMB Yuan
Item Closing balance Opening balance
Deferred income tax assets
Provision for assets impairment 10,828,805.45 10,828,805.45
Formation expenses
Deductible losses 0.00 0.00
Withdrawal expense 928,714.68 928,714.68
Accrued liabilities 0.00 0.00
Payroll payable 4,969,893.74 4,969,893.74
Unrealized profits from intra-group transactions 154,114.57 304,114.85
Subtotal 16,881,528.44 17,031,528.72
Deferred income tax liabilities:
Estimated value of trading financial instruments, derivative
695,407.98 695,407.98
financial instruments
Fair value changes on available-for-sale financial assets that
0.00 0.00
recognized into capital reserves
Subtotal 695,407.98 695,407.98
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List of unrecognized deferred income tax assets and deferred income tax liabilities:
Unit: RMB Yuan
Item Closing balance Opening balance
Deductible temporary differences
Deductible losses
Total
Unrecognized deferred income tax assets and deferred income tax liabilities that will expire in the following fiscal year:
Unit: RMB Yuan
Year Closing balance Opening balance Remark
Total --
List of deferred income tax assets and deferred income tax liabilities:
Unit: RMB Yuan
Temporary differences amount
Item
As at 30 Jun. 2012 As at 1 Jan. 2012
Taxable differences item
Subtotal
Deductible differences items
Subtotal
(2) List of net amount of deferred income tax assets and deferred income tax liabilities after write-off
□Applicable √Inapplicable
Notes of deferred income tax assets and deferred income tax liabilities:
27. List of provision for assets impairment
Unit: RMB Yuan
Increase in reporting Decrease in reporting period Closing book
Item Opening book balance period balance
Reversal Written off
I. Provision for bad debt 5,142,498.32 8,626,356.62 7,203,068.56 226,477.67 6,339,308.71
II. Provision for inventory falling
20,816,997.68 5,578,790.01 2,610,574.16 0.00 23,785,213.53
price
III. Impairment provision of
available-for-sale financial assets
IV. Impairment provision of
held-to-maturity investment
V. Impairment provision of
0.00 0.00
long-term equity investment
VI. Impairment provision of
0.00 0.00 0.00
investment property
VII. Impairment provision of fixed
55,956,730.69 3,078,208.15 52,878,522.54
assets
VIII. Impairment provision of
engineering materials
IX. Impairment provision of
0.00 0.00
construction in progress
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X. Impairment provision of
productive biological assets
Including: mature productive
biological assets
XI. Impairment provision of oil gas
0.00 0.00 0.00
assets
XII. Impairment provision of
0.00 0.00 0.00
intangible assets
XIII. Impairment provision of
996,979.09
goodwill
XIV. Others
Total 82,913,205.78 14,205,146.63 12,891,850.87 226,477.67 84,000,023.87
Notes of the list of assets impairment:
28. Other non-current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Total 0.00 0.00
Notes of other non-current assets:
29. Short-term loan
(1)Category
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan
Credit loan 306,043,379.04 0.00
Total 306,043,379.04 0.00
Notes of category of short-term loan:
(2) List of unsettled mature short-term loan
Unit: RMB Yuan
Reason for
Name of creditor Amount of loan Rate of loan Usage Estimated settle date
unsettlement
Total 0.00 -- -- -- --
RMB* was paid back after the Balance Sheet Date.
Notes of short-term loan, for those gaining extended term, notes term of extension and new maturity day:
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30. Trading financial liabilities
Unit: RMB Yuan
Item Closing fair value Opening fair value
Public trading bonds
Financial liabilities designed to recognized with
a basis on fair value and with its changes
recognized into current gains and losses
Derivative financial liabilities 2,559,589.86 0.00
Other financial liabilities
Total 2,559,589.86 0.00
Notes of trading financial liabilities:
31. Notes payable
Unit: RMB Yuan
Category Closing balance Opening balance
Trade acceptance bill 99,810.50 0.00
Bank acceptance bill 37,515,562.43 44,434,948.83
Total 37,615,372.93 44,434,948.83
RMB37,615,372.93 will be due in next fiscal period.
Notes of notes payable:
32. Accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 597,048,929.02 859,430,058.90
Over 1 years 52,303,525.47 1,102,979.20
Total 649,352,454.49 860,533,038.10
(2) The accounts payable to shareholders with more than 5% (including 5%) of the voting shares of
the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Name of entity Closing balance Opening balance
STAR COMGISTIC CAPITAL CO., LTD. 1,339,681.66 3,937,550.43
Total 1,339,681.66 3,937,550.43
Notes of the accounts payable aging over one year:
Name of entity Owned amount Aging Reason for unsettlem Paid back after Balance
ent Sheet Day amount
Ningbo Chaochao Electrical 500,237.01 2 to 3 years Temporary unsettlem 0.00
Appliance Co., Ltd. ent
Ningbo Jiongshun Electrical 439,846.71 2 to 3 years Temporary unsettlem 0.00
Appliance Co., Ltd. ent
Total 940,083.72 0.00
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33. Advance from customers
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 16,025,232.27 12,527,720.91
Over 1 year 2,613,799.58 1,528,904.22
Total 18,639,031.85 14,056,625.13
(2) Advanced from customers from shareholders with more than 5% (including 5%) of the voting
shares of the Company
□Applicable √Inapplicable
Notes of significant advance from customers aging over one year:
34. Payroll payable
Unit: RMB Yuan
Item Opening book balance Increase in reporting period Decrease in reporting period Closing book balance
I. Salary, bonus,
30,503,866.81 103,576,463.18 110,589,817.78 23,490,512.21
allowance, subsidy
II. Employee welfare 0.00 3,069,715.77 2,504,009.43 565,706.34
III. Social insurance 2,495,370.28 8,439,548.36 10,685,371.07 249,547.57
Medical insurance 53,269.12 2,544,108.97 2,542,860.97 54,517.12
Basic endowment
2,190,234.98 4,274,926.31 6,288,753.89 176,407.40
insurance
Annuity payment 0.00 0.00 0.00 0.00
Unemployment
244,746.95 410,163.75 642,557.17 12,353.53
insurance expense
Employment injury
3,051.82 743,066.81 743,302.84 2,815.79
insurance
Maternity insurance 4,067.41 467,282.52 467,896.20 3,453.73
IV. Housing fund 8,241,370.22 3,125,725.17 2,666,857.15 8,700,238.24
IV. Housing fund
V. Redemption for
terminations of labor 4,741,293.00 2,753,427.51 5,439,584.24 2,055,136.27
contract
Labour union fee and
0.00 42,167.00 42,167.00 0.00
employee education fee
Non-monetary welfare 0.00 17,730.54 4,106.70 13,623.84
Redundancy
4,741,293.00 2,657,024.05 5,362,474.62 2,035,842.43
compensation
Other 0.00 36,505.92 30,835.92 5,670.00
Total 45,981,900.31 120,964,879.99 131,885,639.67 35,061,140.63
RMB 0.00 is the amounts in arrears in the payroll payable.
The labor union budget and employee education budget is RMB13,623.84, and the non-monetary benefits are
RMB2,035,842.43, as well as the compensation for terminating the labor contract is RMB 0.00.
The estimated distribution date and amount as well as other arrangements for payroll payable:
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35. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT -51,361,283.42 -42,691,902.96
Consumption tax
Business tax 444,414.60 775,120.90
Corporate income tax -13,807.55 741,321.45
Personal income tax 311,586.77 416,969.29
Urban maintenance and construction tax 24,555.53 2,564,051.30
Education surtax 60,035.70 2,616,308.48
Other 21,323,440.91 21,619,185.03
Total -29,211,057.46 -13,958,946.51
Notes of taxes payable: for the taxable income of branch companies and factories approved to be inter-adjusted by their local
tax authorities, the Company shall specified their calculation procedure:
36. Interest payable
Unit: RMB Yuan
Item Closing balance Opening balance
Interest payable on long-term borrowings that interest
was paid by stages and principle was repay upon due
Interest of corporate bond
Interest payable on short-term borrowings
Total 0.00 0.00
Notes:
37. Dividends payable
Unit: RMB Yuan
Reason for unsettlement over 1
Name of entity Closing balance Opening balance
year
Total 0.00 0.00 --
Notes:
38. Other accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 163,674,336.06 135,528,827.51
Over 1 year 14,965,816.07 16,673,645.36
Total 178,640,152.13 152,202,472.87
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(2) Other accounts payable from shareholders with more than 5% (including 5%) of the voting
shares of the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Name of entity Closing balance Opening balance
Fullman Investments Ltd. 56,924,043.08 0.00
Sinoglobal Development Limited 73,795,332.00 0.00
STAR COMGISTIC CAPITAL CO., LTD 257,640.50 4,056,909.93
Total 130,977,015.58 4,056,909.93
(3) Notes of the other large amount accounts payable aging over 1 year
Name of entity Owned amount Aging Reason for unsettle Paid back aft
ment er Balance S
heet Date
Fujian Province Zhangzhou SIGMA 800,000.00 1 to 4 years Margin 0.00
Metal,INC
Zhangzhou Huadaxin Metal Co., Ltd. 600,000.00 1 to 4 years Margin 0.00
Xiamen Jingjing Metal Products Co., 600,000.00 1 to 4 years Margin 0.00
Ltd.
Xiamen Hexing Packaging Printing 448,720.00 1 to 3 years Margin 0.00
Co., Ltd.
Zhangzhou Jiafeng Ruichuang Electrics 300,000.00 1 to 2 years Margin 0.00
Co., Ltd.
Total 2,748,720.00 0.00
(4) Notes of other accounts payable with significant amount
39. Estimated liabilities
Unit: RMB Yuan
Increase in reporting Decrease in reporting
Item Opening balance Closing balance
period period
External offering
guarantee
Unsettled lawsuit
Product quality guarantee
Responsibility of
reorganization
Dismissal welfare
Loss contract to be
executed
Other
Total 0.00 0.00 0.00 0.00
Notes of estimated liabilities:
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40. Non-current liabilities due within 1 year
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Long-term loan due within 1 year
Bonds payable due within 1 year
Long-term accounts payable due within 1 year
Total 0.00 0.00
(2) Long-term loan due within 1 year
Long-term loan due within 1 year
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan
Credit loan
Total
RMB* of long-term loan due within 1 year was of mature loan with extended term.
Top five long-term loan due within 1 year
Unit: RMB Yuan
Closing balance Opening balance
Starting Foreign Foreign
Creditor Ending date Currency Rate (%) RMB RMB
date currency currency
balance balance
balance balance
Total -- -- -- -- -- --
Mature loan of long-term loan due within 1 year:
Unit: RMB Yuan
Reason for Estimated date of
Creditor Amount of loan Overdue date Annual rate (%) Usage
unsettlement completion
Total -- -- -- -- --
RMB* of long-term loan due within 1 year was of mature loan with extended term.
Top five long-term loan due within 1 year
(3)Bonds payable due within 1 year
Unit: RMB Yuan
Accrued Interest paid
Opening Closing
Issuance Issuing interest in in the Closing
Name Par value Term interest interest
date amount current reporting balance
payable payable
period period
Notes:
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(4) Long-term accounts payable due within 1 year
Unit: RMB Yuan
Creditor Term Initial amount Rate (%) Accrued interest Closing balance Conditions
Notes of long-term accounts payable due within 1 year:
41. Other current liabilities
Unit: RMB Yuan
Item Closing book balance Opening book balance
Total 0.00 0.00
Notes:
42. Long-term loan
(1)Category of long-term loan
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan
Credit loan
Total 0.00 0.00
Notes of category:
(2)The top five long-term loans
Unit: RMB Yuan
Closing balance Opening balance
Starting Foreign Foreign
Creditor Ending date Currency Rate (%) RMB RMB
date currency currency
amount amount
amount amount
Total -- -- -- -- -- --
Notes of long-term loan: for the long-term loans arising from mature loans with extended term, the Company shall explain
the conditions of extension, principal, interest, expected repayment arrangement:
43. Bonds payable
Unit: RMB Yuan
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Interest paid
Opening Closing Closing
Issuance Issuing in the Closing
Name Par value Term interest interest interest
date amount reporting balance
payable payable payable
period
Notes of bonds payable, including the conditions and date of conversion of the convertible corporate bonds:
44. Long-term payable
(1) The top five long-term payable
Unit: RMB Yuan
Conditions of
Company Term Initial amount Rate (%) Accrued interest Closing balance
loan
(2) List of the financing lease payable under the long-term loan
Unit: RMB Yuan
Closing balance Opening balance
Company
Foreign currency RMB Foreign currency RMB
Total
RMB** was guarantee for the Company’s financing lease provided by the independent third party.
Notes of the long-term payable:
45. Specific payable
Unit: RMB Yuan
Decrease in
Increase in
Item Opening balance reporting Closing balance Note
reporting period
period
Total 0.00 0.00 0.00 0.00 --
Notes of specific payable:
46. Other non-current liabilities
Unit: RMB Yuan
Item Closing book balance Opening book balance
Unrealized income arising from transfer of assets
40,145,770.80 39,923,170.80
by installment collection
Total 40,145,770.80 39,923,170.80
Notes of other non-current liabilities, including each government grants relevant to assets and income received in the
reporting period and their closing amounts:
Other non-current liabilities were income from the transfer of assets and business between Zhangzhou Tsann Kuen and
Shanghai Sigma Metals Inc. with an amount of RMB39,923,170.80, please see to Note. VII(X) 4 for details.
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47. Share capital
Unit: RMB Yuan
Increase/Decrease (+/-)
Opening Capitalization Closing
balance Issuing new balance
Bonus shares of public Other Subtotal
shares
reserves
Total shares 1,112,350,077 0 0 0 0 0 1,112,350,077
Notes of changes in share capital, for those action of increasing capital or decreasing capital in the reporting period, the
Company shall disclose the name of the accounting firm executing the capital verification and document number of the
capital verification report; for joint-stock companies running for less than three years, only the net assets shall be specified
for particulars before establishment; while for case of totally changing the limited liability companies into joint-stock
companies, capital verification on the establishment shall be specified:
48. Treasury stock
Notes of treasury stock:
49. Special reserves
Notes of special reserves:
50. Capital reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Capital premium (share
62,045,659.80 0.00 0.00 62,045,659.80
capital premium)
Other capital reserves 62,991,082.28 3,696,774.72 0.00 66,687,857.00
Total 125,036,742.08 3,696,774.72 0.00 128,733,516.80
Notes:
51. Surplus reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserves
Discretional surplus reserves
Reserve fund
Enterprise development funds
Other
Total 0.00 0.00 0.00 0.00
Notes of surplus reserves: for surplus reserves transferred to share capital, compensating losses and distributed as dividends,
relevant resolutions shall be explained:
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52. Provision for general risk
Notes of provision for general risk:
53. Retained profits
Unit: RMB Yuan
Withdrawal or distributed
Item Amount
proportion
Opening balance of retained profits before adjustments -773,465,250.87 --
Adjustments of opening balance of retained profits
--
(“+” means add, “-” means reduce)
Opening balance of retained profits after adjustments -773,465,250.87 --
Add: Net profit attributable to owners of the Company -19,378,850.76 --
Less: Withdrawal of statutory surplus reserves
Withdrawal of discretional surplus reserves
Withdrawal of provision for general risk
Dividend of common stock payable
Dividend of common stock converted into share capital
Closing retained profits -792,844,101.63 --
List of adjustment of opening retained profits:
1) RMB** opening retained profits was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
2) RMB** opening retained profits was affected by changes on accounting policies.
3) RMB** opening retained profits was affected by correction of significant accounting errors.
4) RMB-9,515,279.08 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
Notes: as for IPO companies, if the accumulated profits were enjoyed by new and original shareholders according to the
resolutions made at the shareholders’ general meeting before public offering, the Company shall explain clearly; if the
accumulated profits were distributed before public offering and enjoyed by the original shareholders according to the
resolutions made at the shareholders’ general meeting, the Company shall clearly disclose the audited profits of dividends
payable enjoyed by the original shareholders:
54. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
Item Reporting period Same period of last year
Sales of main business 1,044,642,038.16 1,335,924,255.87
Other operating income 24,441,450.33 36,542,475.37
Cost of sales 957,074,222.04 1,195,385,127.12
(2)Main business (Classified by industry)
√Applicable □Inapplicable
Unit: RMB Yuan
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Reporting period Same period of last year
Name of industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Manufacture of home appliances 1,021,333,797.38 928,541,975.57 1,325,072,546.90 1,162,003,567.09
Travel 23,308,240.78 21,048,803.46 10,851,708.97 9,714,037.09
Total 1,044,642,038.16 949,590,779.03 1,335,924,255.87 1,171,717,604.18
(3)Main business (Classified by product)
√Applicable □Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Catering and Cooking 582,393,490.23 535,280,111.34 656,113,371.65 569,357,398.06
Home helper 261,169,345.25 239,323,135.82 443,082,604.72 403,278,402.83
Tea/Coffee 108,701,447.51 95,297,668.22 120,443,287.31 108,365,954.94
LED green products 54,449,772.35 47,527,709.62 62,933,210.31 51,381,235.88
Other 14,619,742.04 11,113,350.57 42,500,072.91 29,620,575.38
Travel 23,308,240.78 21,048,803.46 10,851,708.97 9,714,037.09
Total 1,044,642,038.16 949,590,779.03 1,335,924,255.87 1,171,717,604.18
(4) Main business (Classified by area)
√Applicable □Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Australia 62,458,640.05 57,354,131.32 81,836,703.77 73,613,133.93
Africa 12,780,284.07 10,636,560.87 15,191,129.12 12,323,012.12
America 382,338,083.85 353,665,878.59 551,603,805.28 492,613,165.14
Europe 202,912,779.50 179,678,435.66 256,340,291.76 230,094,635.07
Asia 384,152,250.69 348,255,772.59 430,952,325.94 363,073,657.92
Total 1,044,642,038.16 949,590,779.03 1,335,924,255.87 1,171,717,604.18
(5) The revenue of sales from the top five customers
Unit: RMB Yuan
Customer Main business revenue Proportion of total business revenue (%)
Applica 149,318,242.20 13.97%
ZOJIRUSHI CORPORATION 98,932,560.00 9.25%
Sensio 84,460,829.46 7.9%
TKJ 70,085,341.71 6.56%
SEB 51,889,577.64 4.85%
Total 454,686,551.01 42.53%
Notes:
55. Revenue from the construction contracts
□Applicable √Inapplicable
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Notes:
56. Business tax and surtax
Unit: RMB Yuan
Item Reporting period Same period of last year Calculation and payment standard
Consumption tax
Business tax 1,682,165.45 1,450,766.74
Urban maintenance and construction tax 88,101.27 3,633,212.84
Education surtax 173,731.94 2,982,668.96
Resources tax
Other 2,200.74 825.85
Total 1,946,199.40 8,067,474.39 --
Notes:
Withdrawal standard of taxes see to Note. VIII(V) Tax.
57. Gains and losses from changes in fair value
Unit: RMB Yuan
Source Reporting period Same period of last year
Trading financial assets 0.00 13,795,033.05
Including: gains from the changes in fair value of derivative
0.00 13,795,033.05
financial instruments
Trading financial liabilities -7,195,643.08 0.00
Investment property calculated by fair value
Other 0.00 0.00
Total -7,195,643.08 13,795,033.05
Notes:
58. Investment income
(1) List of investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income accounted by cost method
Long-term equity investment income accounted by equity method
Investment income arising from disposal of long-term equity investments
Investment income received from holding of trading financial assets 5,111,481.74 5,001,905.37
Investment income received from holding of held-to-maturity investments
Investment income received from holding of available-for-sale financial
assets
Investment income received from disposal of trading financial assets
Investment income received from holding of held-to-maturity investments
Investment income received from available-for-sale financial assets
Other 7,062.00 304,675.94
Total 5,118,543.74 5,306,581.31
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(2) Long-term equity investment income accounted by cost method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease
year
Total --
(3) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease
year
Total --
Notes of investment income: make notes if there is significant limitation for recovery of investment income. If there isn’t the
said limitation, notes too:
59. Impairment losses
Unit: RMB Yuan
Item Reporting period Same period of last year
I. Bad debts losses 1,423,288.06 77,609.69
II. Inventory falling price losses 2,968,215.85 0.00
III. Impairment losses of available-for-sale financial assets
IV. Impairment losses of held-to-maturity of investment
V. Impairment losses of long-term equity investment
VI. Impairment losses of investment property
VII. Impairment losses of fixed assets
VIII. Impairment losses of engineering materials
IX. Impairment loss of construction in progress
X. Impairment losses of productive biological assets
XI. Impairment losses of oil and gas assets
XII. Impairment losses of intangible assets
XIII. Impairment losses of goodwill
XIV. Other
Total 4,391,503.91 77,609.69
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60. Non-operating gains
(1)
Unit: RMB Yuan
Item Reporting period Same period of last year
Total gains from disposal of non-current assets 1,667,049.84 2,024,215.83
Including：Gains from disposal of fixed assets 1,667,049.84 2,024,215.83
Gains from disposal of intangible assets
Gains from debt reconstruction
Gains from non-monetary assets exchange
Acceptance of donations
Government grants 434,095.56 2,336,916.06
Other 610,429.92 956,585.26
Total 2,711,575.32 5,317,717.15
(2) List of government grants
Unit: RMB Yuan
Item Reporting period Same period of last year Note
Subsidies for export letter China Exports & Credit Insurance
-258,946.44 1,299,401.06
guarantees Corporation Fujian Branch
Subsidies for excellent enterprises
50,000.00 10,000.00 Minzheng【2011】No. 11
in Technology Standard Strategy
Document from Zhangzhou Intellectual
Special funds for patent 20,000.00 95,515.00
Property Bureau
Subsidies for exhibition 8,400.00
Subsidies for increase of power
405,692.00 Minzhengfamingdian (2011) No. 4
consumption
Free tuition for secondary school 208,950.00 Mincaijiao (2011) No.74
Financial subsidy for provincial key
2,000.00
schools
Subsidies for industrial design 540,000.00 Longwei【2011】No. 01
Zhangcaijiao【2010】 No. 153,
Subsidies for patents application 370,000.00
Longwei【2011】No. 4
Special funds for environmental Special funds for environmental
20,000.00
protection protection in 2009
Total 434,095.56 2,336,916.06 --
Notes:
128
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
61. Non-operating expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Loss on disposal of non-current assets 1,125.22 36,996.37
Including: Loss on disposal of fixed assets 1,125.22 36,996.37
Loss on disposal of intangible assets
Loss on debt reconstruction
Loss on exchange of non-monetary assets
External donation expense 0.00 195,000.00
Penalty expense 100,025.25 53.60
Losses on scrap of fixed assets 1,147,955.34 479,042.45
Other 201,345.62 2,935.77
Total 1,450,451.43 714,028.19
Notes:
62. Income tax expense
Unit: RMB Yuan
Item Reporting period Same period of last year
Current income tax expense accounted by tax and relevant
8,701.09 2,808,602.40
regulations
Adjustment of income tax 150,000.28 716,114.87
Total 158,701.37 3,524,717.27
63. Calculation procedure of basic earnings per share and diluted earnings per share
Profits for the reporting period Reporting period Same period of last year
Basic EPS Diluted EPS Basic EPS Diluted EPS
Net profits attributable to ordinary -0.02 -0.02 0.02 0.02
shareholders
Net profits attributable to ordinary -0.02 -0.02 0.02 0.02
shareholders (excl. extraordinary gains or
losses)
Basic EPS==P0÷S
S=S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0-Sk
Of which: P0 refers to net profit attributable to shareholders holding ordinary shares or net profit attributable to shareholders
holding ordinary shares after deducting non-recurring gains and losses; S refers to weighted average number of ordinary
shares issued out; S0 refers to total number of shares at the period-begin; S1 refers to the number of shares increased due to
transferring capital reserve into share capital or dividend distribution of shares during the reporting period; Si refers to the
number of shares increased due to issuance of new shares or debt for equity swap during the reporting period; Sj refers to the
number of shares decreased due to stock repurchase during the reporting period; Sk refers to the number of split-share during
the reporting period; M0 refers to the number of months during the reporting period; Mi refers to the number of months from
the next month to the end of the reporting period for increase of shares; Mj refers to the number of months from the next
month to the end of the reporting period for decrease of shares.
Diluted EPS =P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ weighted average amount of ordinary shares increased due to warrant,
share options, convertible bonds, etc.)
Of which, P1 refers to net profit attributable to shareholders holding ordinary shares or net profit attributable to shareholders
holding ordinary shares after deducting non-recurring gains and losses. The Company shall consider all influence on
potential diluted interests of ordinary shares when the Company calculated diluted earnings per share, till to minimum
diluted EPS.
129
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
64. Other comprehensive income
Unit: RMB Yuan
Item Reporting period Same period of last year
1. Profits/(losses) from available-for-sale financial assets
Less: Effects on income tax generating from available-for-sale
financial assets
Net amount transferred into profit and loss in the current period
that recognized into other comprehensive income in prior
period
Subtotal 0.00 0.00
2. Interests in the investee entities’ other comprehensive
income as per equity method
Less: Effects on income tax generating from the interests in the
investee entities’ other comprehensive income as per equity
method
Net amount transferred into profit and loss in the current period
that recognized into other comprehensive income in prior
period
Subtotal 0.00 0.00
3. Profits/(losses) from cash flow hedging instrument
Less: Effects on income tax generating from cash flow hedging
instrument
Net amount transferred into profit and loss in the current period
that recognized into other comprehensive income in prior
period
The adjustment value that is the converted initial recognition
amount of arbitrage project
Subtotal 0.00 0.00
4. Converted amount of foreign currency financial statements 1,349,983.16 1,227,157.48
Less: Net value of disposal of oversea operations that
0.00 0.00
recognized into current profit and loss
Subtotal 1,349,983.16 1,227,157.48
5. Other
Less: Effects on income tax generating from the others that
included into other comprehensive income
Net amount transferred into profit and loss in the current period
that recognized into other comprehensive income in prior
period
Subtotal 0.00 0.00
Total 1,349,983.16 1,227,157.48
Notes:
130
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
65. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
Item Amount
Deposit 1,319,819.35
Income from rental 14,094,642.07
Interest income 11,361,011.57
Penalty and charges income 0.00
Government grants 1,143,604.00
Other 12,655,584.13
Total 40,574,661.12
Notes of other cash received relevant to operating activities
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item Amount
Compensation for technological knowledge 3,725,389.14
Bank charges 1,227,315.27
Purchase and sales commission 784,654.73
Operation expenses and other items in administration expenses 173,266,336.34
Deposit for notes payment 0.00
Penalty expanses and donation expense 100,025.24
Total 179,103,720.72
Notes:
(3) Other cash received relevant to investment activities
Unit: RMB Yuan
Item Amount
Total 0.00
Notes
(4) Other cash paid relevant to investment activities
Unit: RMB Yuan
Item Amount
Total 0.00
Notes:
131
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
Item Amount
Capital absorbed and loan between related parties 244,582,470.90
Total 244,582,470.90
Notes:
(6) Other cash payments relating to financing activities
Unit: RMB Yuan
Item Amount
Capital absorbed and loan between related parties 125,574,000.00
Total 125,574,000.00
Notes:
66. Appendix of Cash Flow Statement
(1) Appendix of Cash Flow Statement
Unit: RMB Yuan
Supplemental information Reporting period Same period of last
1. Reconciliation of net profit to net cash flows generated from operating activities -- --
Net profit -25,893,398.92 27,857,887.37
Add: Provision for impairment of assets 4,391,503.91 77,609.69
Depreciation of fixed assets, of oil-gas assets, of productive biological assets 39,535,785.94 105,158,665.66
Amortization of intangible assets 1,163,945.14 1,486,365.16
Amortization of long-term deferred expense 1,291,742.90 1,048,432.20
Losses on disposal of property, plant and equipment, intangible assets and other
-1,665,924.62 -1,987,219.46
long-term assets (gains: negative)
Loss on retirement of fixed assets (gains: negative) 1,147,955.34 479,042.45
Loss on fair value change (gains: negative) 7,195,643.08 -13,795,033.05
Financial cost (gains: negative) 1,229,151.79 9,942,569.11
Investment loss (gains: negative) -5,118,543.74 -5,306,581.31
Decrease in deferred income tax assets (gains: negative) 150,000.28 1,353,140.10
Increase in deferred income tax liabilities (decrease: negative) 0.00 2,069,254.96
Decrease in inventory (gains: negative) 30,519,780.10 -60,310,208.07
Decrease in accounts receivable from operating activities (gains: negative) 127,472,860.71 -41,953,984.16
Increase in payables from operating activities (decrease: negative) -227,986,101.28 -156,198,295.02
Other
Net cash flows generated from operating activities -46,565,599.37 -130,078,354.37
2. Investing and financing activities that do not involving
-- --
cash receipts and payment:
Conversion of debt into capital
Convertible bond due within one year
Fixed assets financed by finance leases
3. Net increase in cash and cash equivalents -- --
Closing balance of cash 1,030,890,983.86 602,091,170.46
Less: Opening balance of cash 706,132,122.10 628,047,361.97
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 324,758,861.76 -25,956,191.51
132
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(2) Information about acquisition or disposal of subsidiary and other business units in the reporting
period
Unit: RMB Yuan
Occurred in same period of last
Supplementary Information Occurred in reporting period
year
I. Information about acquisition of subsidiaries and other
-- --
business units:
1. Price of the acquisition of subsidiaries and other business
39,799,620.00
units
2. Cash and cash equivalents paid for the acquisition of
39,799,620.00
subsidiaries and other business units
Less: Cash and cash equivalents held by subsidiaries
8,603,819.54
and other business units
3. Net cash paid for the acquisition of subsidiaries and other
39,799,620.00
business units
Net assets from the acquisition of subsidiaries 29,510,833.95 0.00
Current assets 38,760,285.63
Non-current assets 51,826,460.20
Current liabilities 61,075,911.88
None current liabilities
II. Information about disposal of subsidiaries and other
-- --
business units
1. Price of the disposal of subsidiaries and other business
units
2. Cash and cash equivalents received from the disposal of
subsidiaries and other business units
Less: Cash and cash equivalents held by subsidiaries
and other business units
3. Net cash received from the disposal of subsidiaries and
0.00 202,824.06
other business units
4. Net assets from the disposal of subsidiaries 0.00 0.00
Current assets
Non-current assets
Current liabilities
None current liabilities
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Item Closing amount Opening amount
I. Cash 1,030,890,983.86 706,132,122.10
Including: cash in hand 756,210.01 1,160,074.80
Bank deposit can be used for payment at any time 1,030,114,811.75 704,972,047.30
Other monetary funds can be used for payment at any
19,962.10 0.00
time
Deposits in central bank can be used for payment
Deposits in other banks
Call loans to banks
II. Cash equivalents
Including: bond investments due within three months
III. Closing balance of cash and cash equivalents 1,030,890,983.86 706,132,122.10
Note to Supplementary Information of Cash Flow Statement
133
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
67. Note to changes in owners’ equity
Explain the “Other” items to be adjusted at the end of the first half year and the adjusted amount; the
retroactive adjustment due to consolidation of enterprises under the same control:
Combination of enterprises under the same control.
(VIII) Accounting treatment of asset securitization business
1. Main transaction arrangements, accounting treatments and bankruptcy remoteness terms of asset
securitization
2. Special purpose entities that the company doesn’t own but bears the risks
Unit: RMB Yuan
Operating
Total assets at the Total liabilities at Net assets at the Net profits of
Name revenue of Remark
end of period the end of period end of period current period
current period
(Ⅸ)Relationship and Related Party Transactions
1. Particulars about the parent company:
Unit: RMB Yuan
Proportio Proportio
ns of ns of
parent parent
Ultimate
Name of Legal company’ company’
Relations Enterprise Registrati Business Registere controller Organizat
parent representa Currency s s voting
hip nature on place nature d capital of the ion code
company tive sharehold right to
company
ing to the the
company company
(%) (%)
STAR STAR
COMGIS Controllin COMGIS
Joint Zidi
TIC g Taiwan, Yang 2,186,000 TIC
stock TWD 43.37% 45.42% 09801262
CAPITA sharehold China Wenfang ,000.00 CAPITAL
company 480
L CO., er CO.,
LTD. LTD.
Statement of particulars about parent company of the Company:
134
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
2. Subsidiaries of the Company
Unit: RMB Yuan
Legal Proportion of Proportion of
Full-name of Registered Business Registered Organization
Relationship Type representativ Currency shares held voting right
subsidiaries place nature capital code
e (%) (%)
Controlling Sino-foreign 160,000,000.
TKL Zhangzhou Jian Derong USD 75% 75% 73954770-9
subsidiary joint venture 00
Controlling Sino-foreign
TKN Zhangzhou Jian Derong 5,000,000.00 CNY 56.25% 56.25% 77067325-2
subsidiary joint venture
Limited
Controlling 40,000,000.0
TKS liability Shanghai Jian Derong USD 62.5% 62.5% 607291035
subsidiary 0
company
Non-busines
s
Controlling enterprise
LTC Zhangzhou Zhu Chengde 3,000,000.00 CNY 75% 75% 79176918-1
subsidiary
run by local
people
Limited
Controlling
STD liability Shanghai Jian Derong 4,950,000.00 CNY 56.25% 56.25% 67455210-0
subsidiary
company
Limited
Controlling
TSX liability Xiamen Zhu Chengde 5,000,000.00 CNY 100% 100% 67829338-8
subsidiary
company
Limited
Controlling 30,000,000.0
TSX3C liability Xiamen Dai Huiyuan CNY 75% 75% 68525122-3
subsidiary 0
company
Limited
Controlling
TSST liability Shanghai Zhu Chengde 5,500,000.00 CNY 75% 75% 73408027-3
subsidiary
company
Limited
Controlling
TSD liability Dalian Dai Huiyuan 5,300,000.00 CNY 74.25% 74.25% 66112308-3
subsidiary
company
Limited
Controlling
TSXT liability Xiamen Dai Huiyuan 1,500,000.00 CNY 75% 75% 73788566-7
subsidiary
company
Limited
Controlling 28,000,000.0
SCCX liability Xiamen Jian Derong CNY 75% 75% 55623112-X
subsidiary 0
company
Limited
Brillant Controlling
liability Hongkong Jian Derong 4,950,000.00 USD 75% 75% 1490869
Leader Ltd subsidiary
company
Limited
Globe Strong Controlling
liability Hongkong Jian Derong 50,000.00 USD 75% 75% 1490775
Limited subsidiary
company
Limited
Controlling 10211260111
TKI liability Indonesia Jian Derong 5,000,000.00 USD 75% 75%
subsidiary 3
company
YingshengD Limited
Controlling 57,993,000.0 52406771-00
evelopment liability Hongkong Jian Derong HKD 75% 75%
subsidiary 0 0-4-11-8
Co., Ltd. company
PT.STAR
COMGISTI Limited
Controlling 1021127009
C liability Indonesia Fu Yaxin 7,500,000.00 USD 75% 75%
subsidiary 08
INDONESI company
A
135
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
3. Particulars on joint ventures and associated enterprises of the Company
Unit: RMB Yuan
Total Operating
Legal Proportion Proportion Total assets Net profits
Business Registratio Business Registered Organizatio liabilities at revenue of Relationshi Organizatio
Item representati Currency of holding of voting at the end of current
Type n place scope capital n code the end of current p n code
ve shares (%) rights (%) of period period
period period
I. Joint
-- -- -- -- -- -- -- -- -- -- -- -- -- -- --
ventures
II.
Associated -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
enterprises
136
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
4. Other related parties of the Company
Name Relationship Organization code
EUPA Industry Corporation Limited Shareholder 12959659-000-07-6
Fordchee Development Limited Shareholder 14676920-000-01-09-A
Fillman Investment Limited Shareholder 16269694-000-07-08-4
Tsann Kuen USA, Inc. Same ultimate holding company
Tsann Kuen Japan Co., Ltd. Same ultimate holding company 0105-01-021064
The company directly controlled by the
Thermaster Electronic (Xiamen) Ltd. key management and closed family 61201968-5
members
STAR TRAVEL SERVICE CORP. Same ultimate holding company 80170076
Xiamen Star International Travel Service
Same ultimate holding company 80355209
Co., Ltd.
Xiamen Tsann Kuen Trading Co., Ltd Controlled by same actual controller 58126129-1
Notes:
5．Related party transactions
(1) Purchase of goods, services received among the related-party
Unit: RMB Yuan
Occurred in reporting period Occurred in same period of last year
Proportion Proportion
Content of related Pricing principle of in in
Name of company
transaction related parties Amount transactions Amount transactions
of the same of the same
kind kind
According to contract
STAR COMGISTIC
Purchase price signed by both 5,829,975.84 0.65% 23,052,945.50
CAPITAL CO., LTD.
parties
According to contract
Thermaster Electronic
Purchase price signed by both 19,376,014.52 2.15% 54,393,294.88
(Xiamen) Ltd.
parties
According to contract
STAR COMGISTIC
Receipt of labour service price signed by both 290,007.92 100% 1,148,836.40
CAPITAL CO., LTD.
parties
According to contract
Tsann Kuen Japan Co.,
Receipt of labour service price signed by both 4,942,860.04 24.82% 15,002,609.23
Ltd.
parties
According to contract
Tsann Kuen USA, Inc. Receipt of labour service price signed by both 144,679.93 100% 557,390.85
parties
According to contract
STAR TRAVEL
Receipt of labour service price signed by both 637,829.65 17.01% 754,786.68
SERVICE CORP.
parties
Xiamen Star According to contract
International Travel Receipt of labour service price signed by both 1,065,008.69 28.4% 3,753,274.60
Service Co., Ltd. parties
137
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Statement of sales of goods and rendering of services
Unit: RMB Yuan
Occurred in same period of last
Occurred in reporting period
year
Content of related Pricing principle of Proportio Proportio
Name of company n in n in
transaction related parties
Amount transactio Amount transactio
ns of the ns of the
same kind same kind
According to
Tsann Kuen Japan contract price
Sales of goods 70,085,341.71 6.97% 271,351,021.40 9.55%
Co., Ltd. signed by both
parties
According to
Tsann Kuen (China) contract price
Sales of goods 0.00 0% 0.00 0%
Enterprise Co., Ltd. signed by both
parties
According to
Thermaster
contract price
Electronic (Xiamen) Sales of goods 142,435.90 0.01% 50,858.00 0%
signed by both
Ltd.
parties
According to
Xiamen Tsann Kuen contract price
Sales of goods 1,312.96 0% 60,689.21 0%
Trading Co.,Ltd signed by both
parties
According to
STAR COMGISTIC
contract price
CAPITAL CO., Sales of goods 29,845,110.64 2.97% 66,884,359.82 2.35%
signed by both
LTD.
parties
According to
STAR TRAVEL contract price
Rendering of service 2,835.50 0.07% 1,631.62 0%
SERVICE CORP. signed by both
parties
According to
Xiamen Star
contract price
International Travel Rendering of service 453,062.86 10.78% 849,022.36 1.56%
signed by both
Service Co., Ltd.
parties
According to
Thermaster
contract price
Electronic (Xiamen) Rendering of service 94,419.00 2.25% 109,590.00 0.2%
signed by both
Ltd.
parties
According to
Xiamen Tsann Kuen contract price
Rendering of service 86,497.00 2.06% 19,560.00 0.04%
Trading Co.,Ltd signed by both
parties
According to
Xiamen Tsann Kuen contract price
Rendering of service 4,513,888.86 18.5% 2,633,101.84 5.23%
Trading Co.,Ltd signed by both
parties
(2) Particulars about related trusteeship and guarantees
Table of particulars about trusteeship/contracting of the company
Unit: RMB Yuan
138
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Trust /
Information Amount of Pricing contract Trust/contra
Name of Type of the Initial date Ending date
Name of of the basis for the income ct income
entrusting entrusted/co of being of being
trustee entrusted/co entrusted/co trust / recognized effect on
party/contra ntracted entrusted/co entrusted/co
/contractor ntracted ntracted contract in the the
ctee assets ntract ntract
assets assets income reporting Company
period
Information of entrusting management/contracted
Unit: RMB Yuan
Trust / Entrusting /
Information Amount of Initial date Ending date
Name of Type of the Pricing contract fee contracted
Name of of the of of
entrusting entrusted/co basis for the recognized income
trustee entrusted/co entrusted/co entrusting/ entrusting/
party/contra ntracted trust / in the effect on
/contractor ntracted ntracted being being
ctee assets contract fee reporting the
assets assets contracted contracted
period Company
Information of entrusting management/contracted
(3)Information of related-party lease
Rental situation of the Company
Unit: RMB Yuan
Rental
Rental
Information Pricing income
Category of Amount of income
Name of Name of of the basis for the recognized
the leased the leased Initial date Ending date effect on
lessor lessee leased rental in the
assets assets the
assets income reporting
Company
period
Xiamen According
Xiamen
Tsann Kuen to contract
Tsann Kuen House and 73,953,119. 16 Sept. 15 Sept. 4,513,888.8
(China) Rental price signed
Trading land 41 2011 2014 6
Enterprise by both
Co., Ltd
Co., Ltd. parities
Lease situation of the Company
Unit: RMB Yuan
Lease
Rental
Information Pricing charges
Category of Amount of income
Name of Name of of the basis for the recognized
the leased the leased Initial date Ending date effect on
lessor lessee leased lease in the
assets assets the
assets charges reporting
Company
period
Notes:
(4)Information of related-party guarantee
Unit: RMB Yuan
Whether the
Guarantor Secured party Guarantee amount Initial date Due date guarantee was
accomplished or not
Notes
139
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(5)Related-party call loan
Unit: RMB Yuan
Related party Amount of call loan Initial date Due date Note
Loan from banks and other financial institutions
1.3%/year, principal and
Fillman Investment
56,924,043.08 18 May 2012 17 May 2013 interests are cleared by
Limited
one time when due
SINOGLOBAL 1.3%/year, principal and
DEVELOPMENT 31,624,500.00 9 May 2012 8 May 2013 interests are cleared by
LIMITED. one time when due
SINOGLOBAL 2.2%/year, principal and
DEVELOPMENT 9,584,280.00 22 Dec. 2011 22 Dec. 2012 interests are cleared by
LIMITED. one time when due
SINOGLOBAL 2.2%/year, principal and
DEVELOPMENT 6,389,520.00 16 Mar. 2012 16 Mar. 2013 interests are cleared by
LIMITED. one time when due
SINOGLOBAL 1.95%/year, principal and
DEVELOPMENT 12,779,040.00 15 May 2012 15 May 2013 interests are cleared by
LIMITED. one time when due
SINOGLOBAL 1.95%/year, principal and
DEVELOPMENT 13,417,992.00 22 Jun. 2012 22 Jun. 2013 interests are cleared by
LIMITED. one time when due
Lending to banks and other financial institutions
(6)Information about assets transfer, debt reorganization of related parties
Unit: RMB Yuan
Pricing method Occurred in same period of
Type of and Occurred in reporting period
last year
related Content of the decision-making
Related party
party transaction procedures for Proportio Proportio
transaction the related-party Amount Amount
n (%) n (%)
transaction
(7)Other related-party transaction
6. Amounts due from/to related parties
Amount due from related parties
Unit: RMB Yuan
Name Related party Closing balance Opening balance
Tsann Kuen Japan Co.,
Accounts receivable 46,310,093.42 45,190,093.58
Ltd.
Thermaster Electronic
Accounts receivable 9,990.00 30,723.00
(Xiamen) Ltd.
(Taiwan)STAR
Accounts receivable COMGISTIC CAPITAL 17,069,111.23 9,524,412.88
CO., LTD.
Xiamen Star
Accounts receivable International Travel 73,337.83 57,106.95
Service Co., Ltd.
Xiamen Tsann Kuen
Accounts receivable 1,340.00 0.00
Trading Co.,Ltd
Amount due to related parties
140
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Unit: RMB Yuan
Name Related party Closing balance Opening balance
Thermaster Electronic
Accounts payable 10,014,491.31 14,467,379.44
(Xiamen) Ltd.
Xiamen Institute of Foreign
Accounts payable 186,234.30 403,640.17
Investment Enterprise
(Taiwan) STAR COMGISTIC
Accounts payable 1,339,681.66 3,937,550.43
CAPITAL CO., LTD.
STAR TRAVEL SERVICE
Accounts payable 4,712.75 30,783.68
CORP.
Other accounts payable Tsann Kuen USA, Inc. 21,147.94 129,552.49
Other accounts payable Tsann Kuen Japan Co., Ltd. 2,901,785.35 11,660,846.68
Xiamen Star International
Other accounts payable 103,157.60 38,803.46
Travel Service Co., Ltd.
(Taiwan) STAR COMGISTIC
Other accounts payable 257,640.50 4,056,909.93
CAPITAL CO., LTD.
Xiamen Tsann Kuen Trading
Other accounts payable 7,852,139.85 7,347,059.39
Co., Ltd.
SINOGLOBAL
Other accounts payable 73,795,332.00 0.00
DEVELOPMENT LIMITED.
Other accounts payable Fillman Investment Limited 56,924,043.08 0.00
EUPA Industry Corporation
Other accounts payable 29,274.55 0.00
Limited
(X) Share-based Payment
1. Overview of share-based payment
Total of each equity instrument granted by the
Company in the reporting period
Total of each equity instrument excised by the
Company in the reporting period
Total of each equity instrument expired in the
reporting period
Scope of excising price and remaining contract
term of stock options that externally issued as at
the period-end
Scope of excising price and remaining contract
term of other equity instruments as at the
period-end
Note
2. Information of equity-settled share-based payment
Unit: RMB Yuan
Recognition method on fair value of equity instruments at the
grant date
Recognition method on the best estimate of the number of
vesting equity instruments
Reason for significant differences of estimate between the
reporting period and the same period of last year
Accumulated amount of equity-settled share-based payment in
capital reserves
Total expense recognized for the equity-settle share-based
payment
Notes:
141
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
3. Information of cash-settled share-based payment
Unit: RMB Yuan
Recognition method of fair value of liabilities that are born by the
Company and calculated basing on stocks or other equity
instruments
Accumulated amount of liabilities that arising from cash-settled
share-based payment
Total expense recognized for the cash-settle share-based payment
Notes:
4. Information of share-based payment service
Unit: RMB Yuan
Total employee service exchanged by share-based payment
Total other service exchanged by share-based payment
5. Modification, termination of share-based payment
(XI) Contingency
1. Contingent liabilities and its financial effect arising from unsettled litigation or arbitration
Tsann Kuen Zhangzhou, one of the Company’s subsidiaries, and Xinda Motor Co., Ltd. (hereinafter refer
to as “Xinda Motor”) signed a product supply contract on 20 Jul. 2009, with thee valid period for the
contract being from 1 Jul. 2009 to 30 Jun. 2012. Both parties also signed the 2011 ED Procurement
Contract of Tsann Kuen Zhangzhou Enterprises Co., Ltd., the Special Agreement and other agreements,
according to which Tsann Kuen Zhangzhou would purchase products from Xinda Motor. Later, Tsann
Kuen Zhangzhou rufused to pay for the products and chose to terminate the contract due to quality
problems found in Xinda Motor’s products. On 2 Nov. 2011, Xinda Motor filed a civil action against
Tsann Kuen Zhangzhou to Zhangzhou Intermediate People’s Court, asking the court to order Tsann Kuen
Zhangzhou to pay US$479,089.06 to it for the part of the contract that had been executed but not yet paid
for, to bear the damages for overdue payment, and to continue to execute the unexecuted contractual
obligation (equivalent to a payment of US$189,423.25 for goods).
Tsann Kuen Zhangzhou filed a cross action on 8 Jan. 2012. Xinda Motor had caused serious economic loss
and reputation damage on Tsann Kuen Zhangzhou for the products it provided for Tsann Kuen Zhangzhou
did not go with the contract, due to which Tsann Kuen Zhangzhou produced products of ill quality, goods
were returned and orders were canceled. On that basis, Tsann Kuen Zhangzhou asked Zhangzhou
Intermediate People’s Court to terminate the contract between both parties and order Xinda Motor to pay
to Tsann Kuen Zhangzhou a damage of RMB6 million, and a compensation of RMB13,155,791.00.
Up to the reporting day, the outstanding amount due from Tsann Kuen Zhangzhou to Xinda Motor was
US479,089.06. The case is currently on the docket.
2. Contingent liabilities and its financial effect arising from loan guarantee offered to other
companies
Other contingent liabilities and its financial effect:
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(XII) Commitments
1. Significant commitments
1. Rental contract entered into and under execution as well as its financial effect
Item 2012.6.30 2011.12.31
RMB Ten thousand 人民币万元
The lowest rental payment of irreversible operating lease
House rental
The first year after the Balance Sheet Date 3,727 3,727
The second year after the Balance Sheet Date 3,727 3,727
The third year after the Balance Sheet Date 3,727 3,727
The follwowing years 137,892 141,619
Total 149,073 152,800
2. Fulfillment of previous commitments
Up to the reporting date, the above mentioned commitments were continued to execute and there was no circumstance about
violations of the above committments.
(XIII)Events after the Balance Sheet Date
1. Notes of significant events after the Balance Sheet Date
Unit: RMB Yuan
Influence number on financial Reason for failing to estimate
Item Details
status and operating results the influence number
2. Notes of profit distribution after Balance Sheet Date
Unit: RMB Yuan
Drafted distributed profit or dividends
Profit or dividends claimed to distribute after review and
approval
3. Notes of other events after Balance Sheet Date
Up to the reporting date, there was no events after Balance Sheet Date needs to reveal in the Company.
(XIV)Notes of other significant events
1. Exchange of non-monetary assets
2. Debt reorganization
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3. Business combination
4. Lease
5. Closing financial instruments that externally issued and convertible into shares
6. Main content and significant changes of annuity plan
7. Other significant events
1. Assets and liabilities calculated by fair value
Item 2011.12.31 Income from Accrued Withdrawn 2012.6.30
fair value fair value impairment
change in change that in reporting
reporitng period recognized period
in equity
Financial assets
1. Financial assets recogninzed into current gains 0.00 0.00 0.00 0.00 0.00
and losses by calculated in fair value (excluded
derivative financial assets)
2. Derivative financial assets 4,636,053.22 -7,195,643.08 0.00 0.00 -2,559,589.86
3. Available-for-sale financial assets
Subtotal of financial assets 0.00 0.00 0.00 0.00 0.00
Investment property
Productive biological assets
Other
2. Financial assets and financial liabilities of foreign currency
Item 2011.12.31 Income Accrued Withdrawn 2012.6.30
from fair fair value impairment in
value change reporting
change in that period
reporitng recognized
period in equity
Financial assets
1. Financial assets recogninzed into current gains 0.00 0.00 0.00 0.00 0.00
and losses by calculated in fair value (excluded
derivative financial assets)
2. Derivative financial assets 0.00 0.00 0.00 0.00 0.00
3. Loan and accounts receivable 383,306,621.51 0.00 0.00 1,627,599.85 273,097,852.93
4. Available-for-sale financial assets 0.00 0.00 0.00 0.00 0.00
5. Held-to-maturity investment 0.00 0.00 0.00 0.00 0.00
Subtotal of financial assets 383,306,621.51 0.00 0.00 1,627,599.85 273,097,852.93
Financial liabilities 186,296,798.42 0.00 0.00 0.00 181,293,368.23
144
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(XV) Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on (%) on (%) on (%)
(%)
Accounts receivable with
significant single amount
and individually
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
Subtotal of the groups
Accounts receivable with
insignificant single
amount but individually
withdrawn bad debt
provision
Total -- -- -- --
Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision at period-end
□Applicable √Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
□Applicable √Inapplicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□Applicable √Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
□Applicable √Inapplicable
Accounts receivable with insignificant single amount but individually withdrawn bad debt provision at period-end:
□Applicable √Inapplicable
(2)Information of accounts receivable reversed or recovered in the report period
Unit: RMB Yuan
Withdrawal amount of
Content of accounts Reason for reversal or Basis on recognition of Reversed or recovered
bad debt provision before
receivable recovery provision for bad debts amount
the reversal or recovery
Total -- -- --
The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single amount
but individually made impairment test at the end of report period:
Content of accounts Withdrawal proportion
Book balance Amount of bad debts Reason
receivable (%)
Total -- --
Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks
characteristics:
145
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
(3)Information of accounts receivable that written off in the report period
Unit: RMB Yuan
Whether arising
Name of company Nature Date Amount Reason from related-party
transaction or not
Total -- -- -- --
Notes:
(4)Information of shareholders with more than 5% (including 5%) of the voting shares of the
Company in accounts receivable in report period
□Applicable √Inapplicable
(5)Nature or content of other accounts receivable with significant amount
(6) Top five accounts receivable
Unit: RMB Yuan
Name of company Relationship Amount Term Proportion (%)
Total -- --
(7) Accounts receivable due from related parties
Unit: RMB Yuan
Name of company Relationship Amount Proportion (%)
Total --
(8)
RMB** was transferred from the accounts receivable not meeting the conditions of termination recognition.
(9) If securitization is carried out on accounts receivable as the underlying asset, please brief on the
arrangement of relevant transactions
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2. Other accounts receivable
(1) Other accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Provision for bad
Book balance Provision for bad debts Book balance
debts
Category
Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
(%) (%) (%) (%)
Other accounts receivable
with significant single
amount and individually 0.00 0% 0.00 0% 0.00 0% 0.00 0%
withdrawn bad debt
provision
Other accounts receivable for which bad debt provisions are made on the group basis
Aging group 308,774.97 100% 4,976.64 0% 86,496.06 100% 5,589.73 6.46%
Subtotal of the groups 308,774.97 100% 4,976.64 1.61% 86,496.06 100% 5,589.73
Other accounts receivable
with insignificant single
amount but individually 0.00 0% 0.00 0% 0.00 0% 0.00 0%
withdrawn bad debt
provision
Total 308,774.97 -- 4,976.64 -- 86,496.06 -- 5,589.73 --
Notes of category:
Other accounts receivable with significant single amount and individually withdrawn bad debt provision at period-end:
□Applicable √Inapplicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Book balance
Aging
Proportio Bad debt provision Proportio Bad debt provision
Amount Amount
n (%) n (%)
Within 1 year
Within 1 year -- -- -- -- -- --
292,921.41 94.87% 0.00 72,220.90 83.5% 0.00
1-90 days
10,000.00 3.24% 1,000.00 2,664.08 3.08% 266.41
91-180 days
778.40 0.25% 233.52 2,411.08 2.79% 723.32
181-270 days
2,664.08 0.86% 1,332.04 9,200.00 10.63% 4,600.00
271-365 days
Subtotal of within 1
306,363.89 99.22% 2,565.56 86,496.06 100% 5,589.73
year
1-2 years 2,411.08 0.78% 2,411.08 0.00 0% 0.00
2-3 years
Over 3 years
3 to 4 years
4 to 5 years
Over 5 years
Total 308,774.97 -- 4,976.64 86,496.06 -- 5,589.73
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
147
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
□Applicable √Inapplicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□Applicable √Inapplicable
Other accounts receivable with insignificant single amount but individually withdrawn bad debt provision at period-end:
□Applicable √Inapplicable
(2)Information of other accounts receivable reversed or recovered in the reporting period
Unit: RMB Yuan
Withdrawal amount of
Content of other accounts Reason for reversal or Basis on recognition of Reversed or recovered
bad debt provision before
receivable recovery provision for bad debts amount
the reversal or recovery
Total -- -- --
The withdrawal of bad debt provision of other accounts receivable with significant single amount or insignificant single
amount but individually made impairment test at the end of report period:
Content of other Withdrawal proportion
Book balance Amount of bad debts Reason
accounts receivable (%)
Total -- --
Notes to other accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks
characteristics:
(3)Information of the write-off other accounts receivable
Unit: RMB Yuan
Whether arising from
Reason for
Name of company Nature Date of written off Amount related-party
write-off
transactions
Total -- -- -- --
Notes:
(4) The other accounts receivable due from shareholders with more than 5% (including 5%) of the
voting shares of the Company in the reporting period
□Applicable √Inapplicable
(5)Nature or content of other accounts receivable with significant amount
(6) Top five other accounts receivable
Unit: RMB Yuan
Name of company Relationship Amount Term Proportion (%)
Zhen Xinhong Employee 179,413.79 Within 1 years 58.1%
Beijing Northern Yashi
Assets Appraisal Co, Non-related relationship 70,000.00 Within 1 years 22.67%
Ltd.
Xiamen Souchuang
Junhe Patent Agency Co., Non-related relationship 39,986.00 Within 1 years 12.95%
Ltd.
148
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
CSRC Non-related relationship 10,000.00 Within 1 years 3.24%
Wang Zhifang Employee 9,375.18 Within 1 years 3.04%
Total -- 308,774.97 -- 100%
(7) Other account receivable due from related parties
Unit: RMB Yuan
Name of company Relationship Amount Proportion (%)
Total --
(8)
RMB** was transferred from the other accounts receivable not meeting the conditions of termination recognition.
(9) If securitization is carried out on the other accounts receivable as the underlying asset, please
brief on the arrangement of relevant transactions
3. Long-term equity investments
Unit: RMB Yuan
Explanation
s on
Withdrawal
differences
amount of
between Provision Cash bonus
Initial Shareholdin impairment
The Accounting Opening Increase/ Closing Voting right shareholdin for in the
investment g provision in
investee method balance decrease balance Proportion g impairment reporting
cost Proportion the
proportion loss period
reporting
and voting
period
right
proportion
ShanghaiTs
ann Kuen Cost 194,545,87 194,545,87 194,545,87 130,646,54
0.00 62.5% 62.5% 0.00 0.00
Enterprise method 2.18 2.18 2.18 2.91
Co., Ltd.
Zhangzhou
Tsann Kuen Cost 921,914,70 921,914,70 921,914,70
0.00 75% 75% 0.00 0.00 0.00
Enterprises method 1.56 1.56 1.56
Co., Ltd.
Xiamen
Star
Internationa Cost 5,000,000.0 5,000,000.0 5,000,000.0
0.00 100% 100% 0.00 0.00 0.00
l Travel method 0 0 0
Service Co.,
Ltd.
Xiamen
Institute of
Cost
Foreign 40,000.00 40,000.00 0.00 40,000.00 1.48% 1.48% 0.00 0.00 7,062.00
method
Investment
Enterprise
1,121,500,5 1,121,500,5 1,121,500,5 130,646,54
Total -- 0.00 -- -- -- 0.00 7,062.00
73.74 73.74 73.74 2.91
Note:
4. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
149
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Item Reporting period Same period of last year
Main business revenue
Other business revenue 5,678,593.69 1,176,065.20
Cost of sales 2,575,647.75 959,931.54
Total
(2)Main business (Classified by industry)
□Applicable √Inapplicable
(3)Main business (Classified by product)
□Applicable √Inapplicable
(4) Main business (Classified by area)
□Applicable √Inapplicable
(5) Revenue of sales from the top five customers
Unit: RMB Yuan
Proportion of
Customers Total revenue of sales total revenue of
sales (%)
Total
Notes:
5. Investment income
(1)List of investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income accounted by cost
7,062.00 67,732,295.69
method
Long-term equity investment income accounted by equity
method
Investment income arising from disposal of long-term equity
investments
Investment income received from holding of trading financial
assets
Investment income received from holding of held-to-maturity
investments
Investment income received from holding of
available-for-sale financial assets
Investment income received from disposal of trading
financial assets
Investment income received from holding of held-to-maturity
investments
Investment income received from available-for-sale financial
assets
150
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Long-term equity investment income accounted by cost
method
Total 7,062.00 67,732,295.69
(2)Long-term equity investment income accounted by cost method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease YoY
year
Tasnn Kuen (Zhangzhou) Enterprise Co.,
0.00 67,724,795.69
Ltd.
Xiamen Institute of Foreign Investment
7,062.00 7,500.00
Enterprise
Total 7,062.00 67,732,295.69 --
(3) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease YoY
year
Total --
Notes:
6. Supplemental information of Cash Flow Statement
Unit: RMB Yuan
Supplemental information Reporting period Same period of last year
1. Reconciliation of net profit to net cash flows generated from
-- --
operations：
Net profit 638,884.09 64,193,028.73
Add: Provision for assets impairments -613.09 1,166.52
Depreciation of fixed assets, oil and gas assets and productive
3,002,297.99 2,880,891.25
biological assets
Amortization of intangible assets 235,676.63 507,633.54
Amortization of long-term deferred expense 158,149.02 16,149.00
Losses/gains on disposal of property, intangible asset and other
-147,115.38 0.00
long-term assets (gains: negative)
Losses/gains on scrapped of fixed assets (gains: negative) 0.00 0.00
Losses/gains from variation of fair value (gains: negative) 0.00 0.00
Financial cost (income: negative) -36.01 358.09
Investment loss (gains: negative) -7,062.00 -67,732,295.69
Decrease in deferred tax assets (increase: negative) 0.00 0.00
Increase in deferred tax liabilities (decrease: negative) 0.00 0.00
Decrease in inventory (increase: negative) 0.00 0.00
Decrease in accounts receivable from operating activities (increase:
-209,568.97 -2,977,927.63
negative)
Increase in accounts payable from operating activities (decrease:
729,927.75 1,279,732.60
negative)
Others
Net cash flows generated from operating activities 4,400,540.03 -1,831,263.59
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
151
Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Debt converted into capital
Convertible company bonds due within 1 year
Financing leased fixed assets
3. Change of cash and cash equivalent: -- --
Closing balance of cash 13,264,650.77 16,091,077.74
Less: opening balance of cash 13,757,429.84 904,966.64
Plus: closing balance of cash equivalent
Less: opening balance of cash equivalents
The net increase in cash and cash equivalents -492,779.07 15,186,111.10
7. Information of assets and liabilities recognized by evaluation value from the counter purchase
Unit: RMB Yuan
Name Evaluation value Original book value
Asset
Liabilities
(XVI)Supplemental information
1. Return on equity and earnings per share
Unit: RMB Yuan
The weighted average ROE EPS
Profit in the reporting period
(%)
Basic EPS Diluted EPS
Net profit attributable to the Company’s
-4.26% -0.02 -0.02
common stock shareholders
Net profit attributable to shareholders of the
Company's common stock after deducting -4.15% -0.02 -0.02
non-recurring gains and losses
2. Particulars on the abnormal conditions of main items in the financial statements of the Company
and relevant reasons
Closing balance (or Opening balance (or
Item amount in the reporting amount at the same period Movement Reasons for movement
period) of last year)
Monetary fund 1,030,890,983.86 706,132,122.10 45.99% Mainly because of the increase on
financing of export invoice;
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
Trading financial assets 0.00 4,636,053.22 -100.00% Mainly because closing undelivered
forward exchange of last period was
appraised as asset, while no such
circumstance in the reporting period;
Notes receivable 4,200,000.00 2,979,552.00 40.96% Mainly because bank acceptance bill in
reporting period was increased;
Accounts receivable 299,384,345.91 417,628,180.59 -28.31% Mainly because operating volume was
decresed in reporting period;
Interest receivable 3,801,481.77 1,646,355.63 130.90% Mainly because fixed deposit in reporting
period was increased;
Other accounts receivable 21,291,387.31 31,458,353.08 -32.32% Mainly because the recovery of accounts
receivable when it’s due;
Non-current assets due 3,621,630.44 2,717,019.83 33.29% Mainly because deductible goods of
within 1 year suppliers was reduced in reporting period;
Fixed assets 226,232,133.11 304,624,424.95 -25.73% Mainly because the withdrawan of
depreciation and sales of fixed assets;
Short-term borrowing 306,043,379.04 0.00 100.00% Mainly because financing of export
invoice for borrowings were increased in
reporting period;
Trading financial 2,559,589.86 0.00 100.00% Mainly because closing undelivered
liabilities forward exchange was appraised as
liabilities;
Accounts payable 649,352,454.49 860,533,038.10 -24.54% Mainly because purchase of raw materials
were reduced;
Payroll payable 35,061,140.63 45,981,900.31 -23.75% Mainly because the labour compensation
withdrawn in last period was paid in
reporting period;
Taxes payable (29,211,057.46) (13,958,946.51) 109.26% Mainly because fixed assets taxes was
cleared in reporting period.
Foreign exchange (112,961.02) (1,462,944.18) -92.28%
differences
Item Accrued amount in Accrued amount in same Increase Explanation for reason of change
reporting period period of last year (decrease)%
Operating revenue 1,069,083,488.49 1,372,466,731.24 -22.10% Mainly because of the bad temper of
Europe and America, which led to the
reduce of order of sales;
Business tax and 1,946,199.40 8,067,474.39 -75.88% Mainly because the deductible taxes
surcharges amount was reduced in reporting period;
Financial expense (11,851,591.82) 2,785,127.84 -525.53% Mainly because interest income was
increased in reporting period;
Assets impairment loss 4,391,503.91 77,609.69 5558.45% Mainly because withdrawal of
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Semi-Annual Report 2012 of Tsann Kuen (China) Enterprise Co., Ltd.
fallingprice of inventory and bad debt
impairment was increased;
Income from fair value (7,195,643.08) 13,795,033.05 -152.16% Mainly because forward contract in
changes reporting period was lessen than
appraised income of last period;
Non-operating revenue 2,711,575.32 5,317,717.15 -49.01% Mainly because income from disposal of
fixed assets and subsidiaries income were
reduced;
Non-operating expense 1,450,451.43 714,028.19 103.14% Because the increase of contract
termination money and loss on disposal of
fixed assets;
Net profit (25,893,398.92) 27,857,887.37 -192.95% Mainly because operating volume was
decreased;
Net cash flows arising (46,565,599.37) (130,078,354.37) -64.20% Mainly because payment of goods was
from operating activities lessen than last period;
Net cash flows arising 423,282,274.28 152,979,775.53 -176.69% Mainly because the increase of export
from financing activities invoice and the increase of exchange
loans with controlling shareholders.
IX. Documents for Reference
Documents for Reference
1. Text of Semi-annual Report 2012 signed and sealed by the Board of Directors of the Company.
2. Financial statements signed and sealed by legal representative, principal of accounting work, and manager of finance department.
3. In the reporting period, all texts and originals of the Company’s documents and public notices have been publicly disclosed in
China Securities Journal, Hong Kong Ta Kung Pao and www.cninfo.com.cn designated by CSRC.
Chairman of the Board of Directors: Jian Derong
Date for submission approved by the Board of Directors: 25 Aug. 2012
154
