Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Tsann Kuen (China) Enterprise Co., Ltd.
Report for the First Quarter of 2014
Apr. 2014
1
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Tsann Kuen (China) Enterprise Co., Ltd. (hereinafter referred to as “the
Company”) warrant that this report is factual, accurate and complete without any false record,
misleading statement or material omission. And they shall be jointly and severally liable for that.
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 factual, accurate and complete.
All directors attended the board session for reviewing this report.
This report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
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Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Section II. Financial Highlights & Change of Shareholders
I. Financial highlights
Does the Company adjust retrospectively or restate financial data of previous periods?
□ Yes √ No
Unit: RMB Yuan
YoY
Jan.-Mar. 2014 Jan.-Mar. 2013 increase/decreas
e (%)
Operating revenues 424,258,718.53 424,878,316.41 -0.15%
Net profit attributable to shareholders of the Company 5,447,385.36 7,578,667.87 -28.12%
Net profit attributable to shareholders of the Company after extraordinary
11,424,272.23 4,128,159.49 176.74%
gains and losses
Net cash flows from operating activities -15,588,009.47 -28,409,039.92 45.13%
Basic EPS (RMB Yuan/share) 0.03 0.04 -25.00%
Diluted EPS (RMB Yuan/share) 0.03 0.04 -25.00%
Weighted average ROE (%) 1.04% 1.54% -0.50%
Increase/decreas
31 Mar. 2014 31 Dec. 2013
e (%)
Total assets 2,048,719,512.95 1,690,801,284.83 21.17%
Owners’ equity attributable to shareholders of the Company (RMB Yuan) 527,675,019.15 520,693,211.26 1.34%
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Amount as of Jan.-Mar. 2014
Item Note
(unit: RMB Yuan)
Gain/loss on the disposal of non-current assets (including the offset part of the asset
626,858.39
impairment provisions)
Tax rebates, reductions or exemptions due to approval beyond authority or the lack
of official approval documents
Government grants recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according to 1,913,721.00
the government’s unified standards
Capital occupation charges on non-financial enterprises that are recorded into
current gains and losses
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Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Gains due to that the investment costs for the Company to obtain subsidiaries,
associates and joint ventures are lower than the enjoyable fair value of the
identifiable net assets of the investees when making the investments
Gain/loss on non-monetary asset swap
Gain/loss on entrusting others with investments or asset management
Asset impairment provisions due to acts of God such as natural disasters
Gain/loss on debt restructuring
Expenses on business reorganization, such as expenses on staff arrangements,
integration, etc.
Gain/loss on the part over the fair value due to transactions with distinctly unfair
prices
Current gains and losses of subsidies acquired from business combination under the
same control as from period-begin to combination date
Gain/loss on contingent events irrelevant to the Company’s normal business
Gains and losses on change in fair value from tradable financial assets and tradable
financial liabilities, as well as investment income from disposal of tradable
-16,884,375.90
financial assets and tradable financial liabilities and financial assets available for
sales except for effective hedging related with normal businesses of the Company
Impairment provision reversal of accounts receivable on which the impairment test
is carried out separately
Gain/loss on entrustment loans
Gain/loss on change of the fair value of investing real estate of which the
subsequent measurement is carried out adopting the fair value method
Effect on current gains/losses when a one-off adjustment is made to current
gains/losses according to requirements of taxation, accounting and other relevant
laws and regulations
Custody fee income when entrusted with operation
Non-operating income and expense other than the above 5,026,120.65
Other gain and loss items that meet the definition of an extraordinary gain/loss
Less: Income tax effects -1,980,504.05
Minority interests effects (after tax) -1,360,284.94
Total -5,976,886.87
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public —Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
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Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
II. Total number of shareholders at the period-end and shares held by the top ten
shareholders
Unit: Share
Total number of shareholders at the
25,074
period-end
Shares held by the top ten shareholders
Number of the Pledged or frozen shares
Nature of Shareholding Number of the
Name of shareholder restricted shares
shareholder percentage (%) shares held Status of shares Number of shares
held
FORDCHEE
Foreign
DEVELOPMENT 29.1% 53,940,530 0 N/A N/A
corporation
LIMITED
EUPA INDUSTRY
Foreign
CORPORATION 13.83% 25,633,718 0 N/A N/A
corporation
LIMITED
FILLMAN
Foreign
INVESTMENTS 2.49% 4,621,596 0 N/A N/A
corporation
LIMITED
Domestic natural
Chen Yongquan 0.9% 1,668,747 0 N/A N/A
person
Foreign natural
Xia Qianru 0.7% 1,299,545 0 N/A N/A
person
Domestic natural
Ou Yanping 0.65% 1,205,200 0 N/A N/A
person
Foreign natural
Chen Lijuan 0.55% 1,012,791 0 N/A N/A
person
Foreign natural
Chen Yongqing 0.53% 981,598 0 N/A N/A
person
Domestic natural
Zou Shilin 0.46% 847,503 0 N/A N/A
person
CSC SECURITIES Foreign
0.45% 833,136 0 N/A N/A
(HK) LTD. corporation
Shares held by the top ten floating share holders
Number of non-restricted shares Type of shares
Name of shareholder
held Type Number
FORDCHEE DEVELOPMENT
53,940,530 Domestically listed foreign shares 53,940,530
LIMITED
EUPA INDUSTRY CORPORATION 25,633,718 Domestically listed foreign shares 25,633,718
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Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
LIMITED
FILLMAN INVESTMENTS LIMITED 4,621,596 Domestically listed foreign shares 4,621,596
Chen Yongquan 1,668,747 Domestically listed foreign shares 1,668,747
Xia Qianru 1,299,545 Domestically listed foreign shares 1,299,545
Ou Yanping 1,205,200 Domestically listed foreign shares 1,205,200
Chen Lijuan 1,012,791 Domestically listed foreign shares 1,012,791
Chen Yongqing 981,598 Domestically listed foreign shares 981,598
Zou Shilin 847,503 Domestically listed foreign shares 847,503
CSC SECURITIES (HK) LTD. 833,136 Domestically listed foreign shares 833,136
The top three shareholders are the Company’s corporate controlling shareholders. It is
Explanation on associated relationship
unknown to the Company whether there exists associated relationship among the
or persons acting in concert among the
shareholders above or they are acting-in-concert entities as stipulated in the Administrative
above-mentioned shareholders
Measures on Information Disclosure of Changes in Shareholding of Listed Companies.
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
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Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Section III. Significant Events
I. Significant changes of the major accounting statement items and financial indicators for the
reporting period, as well as the reasons for these changes
√ Applicable □ Inapplicable
Unit: RMB Yuan
Serial
Item 31 Mar. 2014 31 Dec. 2013 +/-% Main reasons for the change
No.
1 Transactional financial assets 0.00 21,120,100.00 -100.00% The assessed loss on the undelivered forward exchange contracts
2 Interest receivable 3,927,621.02 110,833.33 3443.72% Term savings increased.
3 Other current assets 300,000,000.00 50,000,000.00 500.00% Wealth management products acquired increased.
4 Construction in progress 5,070,173.28 10,889,671.98 -53.44% Construction of plants was completed and transferred into fixed assets.
5 Short-term borrowings 370,971,630.00 30,484,500.00 1116.92% Short-term borrowings from banks increased.
6 Transactional financial liabilities 2,840,152.94 0.00 100.00% Loss on the undelivered forward exchange contracts
Due notes payable were settled and L/C was adopted more often in
7 Notes payable 8,392,334.92 30,577,887.89 -72.55%
settlement.
8 Accounts received in advance 17,772,988.95 10,431,654.59 70.38% Advances from customers increased.
9 Taxes and fares payable 776,804.52 -17,127,309.97 104.54% The export tax rebates of last year were called back.
10 Interest payable 1,162,370.12 108,661.00 969.72% Short-term borrowings increased.
11 Other payables 205,324,087.09 69,376,770.31 195.96% The Company secured some borrowings from related parties.
Forward exchange transactions failed to generate returns at the
12 Deferred income tax liabilities 217,318.67 3,258,742.65 -93.33%
period-beginning.
Serial
Item Jan.-Mar. 2014 Jan.-Mar. 2013 +/-% Main reasons for the change
No.
Business tax and surtaxes incurred by the export tax exemption, offset
1 Business tax and surtaxes 2,430,498.24 746,142.20 225.74%
and refund .
RMB depreciation created a favorable condition in currency exchange
2 Financial expenses -7,457,267.79 276,017.39 -2801.74%
and the interest income increased.
Inventory falling-price provisions were written off and bad debts among
3 Asset impairment loss -5,248,202.75 1,846,599.75 -384.21%
the accounts receivable were collected.
4 Gain on fair value changes -23,960,252.94 523,529.64 -4676.68% The assessed loss on the undelivered forward exchange contracts.
The gain on delivered forward exchange contracts and wealth
5 Investment gain 7,075,877.04 1,520,632.17 365.32%
management products increased.
6 Non-operating income 7,623,739.38 2,986,661.35 155.26% The governmental subsidies increased.
Forward exchange transactions failed to generate returns at the
7 Income tax expenses -909,585.09 1,293,262.02 -170.33% period-beginning, resulting in a decrease in deferred income tax
expenses.
8 Net cash flows from operating activities -15,588,009.47 -28,409,039.92 45.13% Payments to suppliers decreased.
9 Net cash flows from investing activities -252,135,178.71 -7,906,884.84 -3088.81% Wealth management products increased.
Export financings and borrowings from the controlling shareholder
10 Net cash flows from financing activities 468,848,906.82 231,831,944.50 102.24%
increased.
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Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
II. Progress of significant events and analysis & explanations on their influence and solutions
(I) Contingent events
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 the 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 refused 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 USD 479,089.06 (RMB 3,071,535.78) 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 USD 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
RMB 1,000,000.00, and a compensation of RMB 7,621,576.00.
On 15 Aug. 2013, Zhangzhou Intermediate People’s Court issued the judgment of the first trial, with its contents
as follows: 1. Defendant Tsann Kuen Zhangzhou Enterprise Co., Ltd. shall pay a product payment of USD
479,089.06 (RMB 3,071,535.78) to plaintiff Xinda Motor Co., Ltd. within 15 days from the date of entry into
force of this Judgment; 2. Plaintiff Xinda Motor Co., Ltd. and third party Boluo County Lian Yuan Industry
Technology Co., Ltd. shall jointly pay liquidated damages of RMB 1,233,399.70 to defendant Tsann Kuen
Zhangzhou Enterprise Co., Ltd. within 15 days from the date of entry into force of this Judgment; 3. The 10 orders
that have not been executed between plaintiff Xinda Motor Co., Ltd. & third party Boluo County Lian Yuan
Industry Technology Co., Ltd. and defendant Tsann Kuen Zhangzhou Enterprise Co., Ltd. shall be cancelled; 4.
The other claims of plaintiff Xinda Motor Co., Ltd. shall be overruled; and 5. The other claims of defendant Tsann
Kuen Zhangzhou Enterprise Co., Ltd. shall be overruled. Both parties were not satisfied with the judgment of the
first trial and filed appeals.
Up to the date of this report, the outstanding carrying amount due from Tsann Kuen Zhangzhou to Xinda Motor
was USD 479,089.06. Since the case is currently in the second trial, Tsann Kuen Zhangzhou has not yet
recognized the contingent asset of RMB 1,233,399.70 on Xinda Motor.
Meanwhile, the defective motor products provided by Xinda Motor were 104,691 units and only 23,035 units of
them were handled in this case, leaving 81,656 units un-handled. Therefore, Tsann Kuen Zhangzhou filed another
suit in Zhangzhou Intermediate People’s Court on 24 Dec. 2013, with the involved amount being RMB
3,702,957.93. Zhangzhou Intermediate People’s Court has accepted the case and will open a court session on 9 Jul.
2014.
8
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
(II) Sale of assets:
Due to operating needs, the following assets were sold in the reporting period:
Unit: RMB Ten Thousand Yuan
Proportion of
Net profit Related relation
the net profit
contributed by Whether the i
contributed by Whether wa ship with the c Whether the
the sold asset
Influence the sold asset to involving nvolving clai
Selling to the listed Pricing s related p ounterparty (ap Disclosu Disclosure
Transaction party Asset sold Selling date on the the listed property right ms and debts
price companies principle arty transa plied for the re re date index
Company companies of had wholly had wholly
from
the total amount ction lated transactio transferred transferred
period-begin
of the net profit n)
to date of sale
(%)
Tsann Kuen Enterprise Under the same
Other Related part Inapplic
Co., Ltd. 2014.01.24 10.01 0.87 0.87 0.16% control of the Yes Yes Inapplicable
equipment y able
actual controller
HAVELLS Mould 2014.02.28 42.75 35.28 35.28 6.48% The
transaction
Hardware
PRME 2014.02.28 8.70 7.28 7.28 1.34% prices
equipment
were
Other
DOB 2014.02.28 0.64 0.55 0.55 0.10% decided
equipment based on
Other
Hailong 2014.02.28 1.20 1.03 1.03 0.19% the market
equipment price and
Other
Shengyuan 2014.02.28 2.40 2.05 2.05 0.38% settled
equipment according Non-related Inapplic
Molding Inapplicable Yes Yes Inapplicable
Yuejia Electronics 2014.03.31 6.50 1.34 1.34 0.25% to the party able
equipment signed
Other contract of
Yixin 2014.03.31 0.15 0.13 0.13 0.02%
equipment both
Hardware parties.
Yixin 2014.03.31 0.80 0.78 0.78 0.14%
equipment
Hardware
Fushun 2014.03.31 11.00 9.61 9.61 1.76%
equipment
Bakelite
Huaruixing 2014.03.31 1.79 1.71 1.71 0.31%
equipment
Total 85.94 60.63 60.63 11.13%
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Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
III. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period or such commitments carried down into the reporting period
Time of
Commitment Period of
Commitment Contents making Fulfillment
maker commitment
commitment
Commitments made in a share
reform
Commitments made in an
acquisition report or a report on
equity changes
Commitments made in asset
reorganization
Commitments made in the first
public offering or refinancing.
Based on the confidence on the
continuous and stable development of the
The Company’s
Company, it committed to increase the
stocks resumed
shareholding if the Company’s stock price
trading on 31 Dec.
was lower than HKD2.40 per share after
2012, but the
the implementation of the shares
Company’s stock
contraction and trading resumption, and it
price hasn’t met the
would increase no more than 2% shares Within one year
condition for
FILLMAN (i.e. 370,780,000 shares) of the total since the date of
Other commitments made to shareholding
INVESTMEN shares issued by the Company within one 28 Dec. 2012 initial
minority shareholders increase since the
TS LIMITED) year since the date of initial shareholding shareholding
date of trading
increase. If the plan on increasing holding increase
resumption,
2% shares of the total shares is completed,
FILLMAN
if the stock price hasn’t reached the target
Investment Limited
price, it will perform relevant approval
hasn’t implemented
procedures, and propose to CSRC on
the shareholding
continuous implementation of
increase plan.
shareholding increase by exemption of
offering.
Executed in time or not? Yes
Detailed reason for failing to The Company’s stocks resumed trading on 31 Dec. 2012, but the Company’s stock price hasn’t met the condition
execute and the plan for the next for shareholding increase since the date of trading resumption, FILLMAN Investment Limited hasn ’t implemented
step (If any) the shareholding increase plan.
IV. Predict the operating results of Jan.-Jun. 2014
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the
next reporting period according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
V. Securities investment
Explanation of the situation of holding the equities of other listed companies
□Applicable √Inapplicable
10
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
VI. Investments in derivatives
Unit: (RMB) Ten thousand Yuan
Proportion of
the closing
Actual
Related-party Type of Initial Opening Impairment Closing investment
gain/loss in
Operator Relation transaction or derivative investment Beginning date Ending date investment provision (if investment amount in the
reporting
not investment amount amount any) amount Company’s
period
closing net
assets (%)
Forward
Bank No No 113,306.52 1 Jan. 2014 31 Mar. 2014 95,896.14 94,356.70 178.82% -1,894.57
exchange
Total 113,306.52 95,896.14 94,356.70 178.82% -1,894.57
Capital source for derivative investment Self-owned funds
Litigation cases situation N/A
Disclosure date of the board announcement approving the
2013/3/12
wealth management entrustment
Disclosure date of the general meeting announcement
2013/5/18
approving the wealth management entrustment
1. Analysis on risks from holding of derivative products: gains or losses from difference between contracted exchange rate and
market exchange rate on value date.
2. Control measures
(1) Principle: The purpose of the financial derivative operation is to avoid risks. The Company shall not conduct transactional
operation for other purposes than risk avoidance. The Company shall not conduct complex derivative trading above the ac tual
operation needs and shall not speculate in derivative trading with hedging as an excuse. The overall contractual amount for risk
avoidance of the Company shall not exceed the summation of the net risk exposure of the existing assets and liabilities an d the
net risk exposure of assets and liabilities arising from the operation of the Company in the coming year.
Analysis on risks and control measures of derivative products
(2) Staff requirements: Personnel taking part in the investment shall all fully understand the risks of derivative investment and
held in the reporting period (including but not limited to
strictly execute the business operation and risk management mechanisms for derivative investment.
market risk, liquidity risk, credit risk, operation risk, law risk,
(3) Operation standardization: Before making a derivative investment, the Company shall rationally equip itself with
etc.)
professional personnel for investment decision-making, business operation, risk control, etc. It shall also inquire and compare
among various markets and products. Besides, it shall strictly control the variety and size of derivative investment and try to
choose derivative trading on exchange as much as possible.
(4) Periodic evaluation: Derivative investments shall be evaluated at least twice for a month and the evaluation report shall be
sent to a high-ranking executive authorized by the Board of Directors. And a derivative investment report shall be sent to the
Board of Directors annually.
(5) Loss limit: The investment loss on a single derivative and all the investment loss shall not exceed 20% of the total investment
amount.
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Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
(6) Audit system: The audit department audits derivative product trading periodically and submits audit reports to relevant units.
(1) Gains and losses effected by completed transaction amount of derivative products was RMB 5.0146 million, and loss from
undelivered transaction was RMB 23.9603 million, of which the of revenue rotation of the undelivered forward exchange
Changes of market prices or fair values in the reporting period
assessment was of RMB 21.1201 million.
of the invested derivatives. And the analysis on the fair value
(2) The former contracted bank provided monthly sheets of estimated exchange rates for the undue contracted forward exchanges
of the derivatives should include the specific use methods and
on the last trading day of the month.
the relevant assumptions and parameters.
(3) The profit and loss from fair value changes of the derivative was confirmed according to the difference between the
contracted amount undue by the month*the estimated exchange rate and the currency amount when bought in.
Whether significant changes occurred to the Company’s
accounting policy and specific accounting principles of There were no significant changes between the Company’s accounting policy and specific accounting principles of derivatives in
derivatives in the reporting period compared to the previous the reporting period and those in the last reporting period.
reporting period
Special opinion from independent directors, sponsor or The Company has carried out a strict internal assessment for the financial derivative business and has established a
financial consultant on the Company’s derivatives investment corresponding supervision mechanism. We are of the opinion that the financial derivative business conducted by the Company is
and risk control fairly necessary in its routine operation and is in compliance with relevant laws and regulations, with the risks controllable.
VII. Researches, visits and interviews received in the reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided by the
Company
Operating situation of the
The office of the Telephone Company, relevant policies
28 Feb. 2014 Individual Mr. Yu
Company Communication of B shares; had not offer
any written sources.
12
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Closing balance Opening balance
Current assets:
Monetary funds 1,040,319,224.03 834,088,959.68
Settlement reserves
Intra-group lendings
Transactional financial assets 21,120,100.00
Notes receivable 2,295,968.41 2,467,447.00
Accounts receivable 197,852,598.73 253,823,475.86
Accounts paid in advance 5,582,911.95 4,290,802.70
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable 3,927,621.02 110,833.33
Dividend receivable
Other accounts receivable 30,333,829.71 32,339,652.22
Financial assets purchased under agreements to resell
Inventories 191,901,834.83 209,824,098.90
Non-current assets due within 1 year
Other current assets 300,000,000.00 50,000,000.00
Total current assets 1,772,213,988.68 1,408,065,369.69
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 40,000.00 40,000.00
Investing property 56,546,533.15 58,732,511.36
Fixed assets 175,113,609.64 173,152,964.50
Construction in progress 5,070,173.28 10,889,671.98
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 11,735,571.55 11,803,252.87
R&D expense
Goodwill
Long-term deferred expenses 3,906,746.64 4,355,866.63
Deferred income tax assets 22,401,592.66 23,761,647.80
Other non-current assets 1,691,297.35
Total of non-current assets 276,505,524.27 282,735,915.14
Total assets 2,048,719,512.95 1,690,801,284.83
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Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Closing balance Opening balance
Current liabilities:
Short-term borrowings 370,971,630.00 30,484,500.00
Borrowings from Central Bank
Customer bank deposits and due to banks and other
financial institutions
Intra-group borrowings
Transactional financial liabilities 2,840,152.94
Notes payable 8,392,334.92 30,577,887.89
Accounts payable 525,082,894.94 648,629,156.16
Accounts received in advance 17,772,988.95 10,431,654.59
Financial assets sold for repurchase
Handling charges and commissions payable
Employee’s compensation payable 33,138,140.31 40,748,328.96
Tax payable 776,804.52 -17,127,309.97
Interest payable 1,162,370.12 108,661.00
Dividend payable
Other accounts payable 205,324,087.09 69,376,770.31
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of securities
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 1,165,461,403.79 813,229,648.94
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 217,318.67 3,258,742.65
Other non-current liabilities 222,600.00 222,600.00
Total non-current liabilities 439,918.67 3,481,342.65
Total liabilities 1,165,901,322.46 816,710,991.59
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 185,391,680.00 185,391,680.00
Capital reserves 278,454,447.07 278,454,447.07
Less: Treasury stock
Specific reserves
Surplus reserves 11,495,983.58 11,495,983.58
Provisions for general risks
Retained profits 52,180,688.79 46,733,303.43
Foreign exchange difference 152,219.71 -1,382,202.82
Total equity attributable to owners of the Company 527,675,019.15 520,693,211.26
Minority interests 355,143,171.34 353,397,081.98
Total owners’ (or shareholders’) equity 882,818,190.49 874,090,293.24
Total liabilities and owners’ (or shareholders’) equity 2,048,719,512.95 1,690,801,284.83
Legal representative: Jian Derong Chief of the accounting work: Chen Zongyi Chief of the accounting organ: Chen Zongyi
14
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
2. Balance sheet of the Company
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 14,343,643.50 11,811,615.43
Transactional financial assets
Notes receivable 2,295,968.41 822,974.00
Accounts receivable 9,661,625.97 39,868,837.59
Accounts paid in advance 224,512.97 418,695.09
Interest receivable
Dividend receivable
Other accounts receivable 2,152,057.90 1,195,292.22
Inventories 4,876,970.53 4,346,896.79
Non-current assets due within 1 year
Other current assets
Total current assets 33,554,779.28 58,464,311.12
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 985,854,030.83 985,854,030.83
Investing property 47,357,317.37 48,731,726.97
Fixed assets 616,259.25 646,980.59
Construction in progress 92,700.00
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 206,499.64 313,667.95
R&D expense
Goodwill
Long-term deferred expenses 1,034,238.08 1,126,312.61
Deferred income tax assets 4,228,126.98 4,228,126.98
Other non-current assets 92,700.00
Total of non-current assets 1,039,389,172.15 1,040,993,545.93
Total assets 1,072,943,951.43 1,099,457,857.05
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable
Accounts payable 47,002,757.80 87,479,703.39
Accounts received in advance 10,193,856.81 988,253.99
Employee’s compensation payable 1,108,085.09 1,175,146.87
15
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Closing balance Opening balance
Tax payable 1,237,106.88 956,841.14
Interest payable
Dividend payable
Other accounts payable 492,694,502.92 491,868,854.25
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 552,236,309.50 582,468,799.64
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 0.00 0.00
Total liabilities 552,236,309.50 582,468,799.64
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 185,391,680.00 185,391,680.00
Capital reserves 271,485,181.40 271,485,181.40
Less: Treasury stock
Specific reserves
Surplus reserves 11,495,983.58 11,495,983.58
Provisions for general risks
Retained profits 52,334,796.95 48,616,212.43
Foreign exchange difference
Total owners’ (or shareholders’) equity 520,707,641.93 516,989,057.41
Total liabilities and owners’ (or shareholders’)
1,072,943,951.43 1,099,457,857.05
equity
Legal representative: Jian Derong Chief of the accounting work: Chen Zongyi Chief of the accounting organ: Chen Zongyi
16
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
3. Consolidated income statement
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Operating revenues 424,258,718.53 424,878,316.41
Including: Sales income 424,258,718.53 424,878,316.41
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 409,168,627.22 419,000,253.40
Including: Cost of sales 369,674,443.64 362,729,320.18
Interest expenses
Handling charge and commission expenses
Surrenders
Net claims paid
Net amount withdrawn for the insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 2,430,498.24 746,142.20
Selling and distribution expenses 15,550,356.79 16,237,180.87
Administrative expenses 34,218,799.09 37,164,993.01
Financial expenses -7,457,267.79 276,017.39
Asset impairment loss -5,248,202.75 1,846,599.75
Add: Gain/(loss) from change in fair value (“-” means loss) -23,960,252.94 523,529.64
Gain/(loss) from investment (“-” means loss) 7,075,877.04 1,520,632.17
Including: share of profits in associates and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) -1,794,284.59 7,922,224.82
Add: non-operating income 7,623,739.38 2,986,661.35
Less: non-operating expense 57,039.34 36,288.86
Including: loss from non-current asset disposal 14,857.02 21,954.21
IV. Total profit (“-” means loss) 5,772,415.45 10,872,597.31
Less: Income tax expense -909,585.09 1,293,262.02
V. Net profit (“-” means loss) 6,682,000.54 9,579,335.29
Including: Net profit achieved by combined parties before the
combinations
Attributable to owners of the Company 5,447,385.36 7,578,667.87
Minority shareholders’ income 1,234,615.18 2,000,667.42
VI. Earnings per share -- --
(I) Basic earnings per share 0.03 0.04
(II) Diluted earnings per share 0.03 0.04
VII. Other comprehensive incomes 1,534,422.53 3,143,700.62
VIII. Total comprehensive incomes 8,216,423.07 12,723,035.91
Attributable to owners of the Company 6,981,807.89 10,722,368.49
Attributable to minority shareholders 1,234,615.18 2,000,667.42
Legal representative: Jian Derong Chief of the accounting work: Chen Zongyi Chief of the accounting organ: Chen Zongyi
17
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
4. Income statement of the Company
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Operating revenues 19,668,041.34 14,033,533.23
Less: operating costs 12,827,510.42 9,440,705.71
Business taxes and surcharges 323,834.21 243,736.32
Distribution expenses 1,616,468.48 1,129,123.84
Administrative expenses 2,781,031.86 1,340,721.67
Financial costs -42,307.79 -30,339.32
Impairment loss -1,556,664.17 -1,265.05
Add: gain/(loss) from change in fair value (“-” means loss)
Gain/(loss) from investment (“-” means loss) 7,533.00
Including: income form investment on associates and joint
ventures
II. Business profit (“-” means loss) 3,718,168.33 1,918,383.06
Add: non-business income 416.19 774,627.02
Less: non-business expense
Including: loss from non-current asset disposal
III. Total profit (“-” means loss) 3,718,584.52 2,693,010.08
Less: income tax expense
IV. Net profit (“-” means loss) 3,718,584.52 2,693,010.08
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income
VII. Total comprehensive income 3,718,584.52 2,693,010.08
Legal representative: Jian Derong Chief of the accounting work: Chen Zongyi Chief of the accounting organ: Chen Zongyi
18
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
5. Consolidated cash flow statement
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 472,050,234.57 501,946,380.82
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 71,980,717.35 60,384,540.74
Other cash received relating to operating activities 26,368,981.31 27,491,106.59
Subtotal of cash inflows from operating activities 570,399,933.23 589,822,028.15
Cash paid for goods and services 458,851,343.59 503,436,795.67
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 65,483,557.51 63,454,007.41
Various taxes paid 8,264,059.89 10,366,404.15
Other cash payment relating to operating activities 53,388,981.71 40,973,860.84
Subtotal of cash outflows from operating activities 585,987,942.70 618,231,068.07
Net cash flows from operating activities -15,588,009.47 -28,409,039.92
II. Cash flows from investing activities:
Cash received from withdrawal of investments 55,014,569.58 1,470,378.53
Cash received from return on investments 2,172,140.79
Net cash received from disposal of fixed assets, intangible assets
439,943.13 3,947,653.12
and other long-term assets
Net cash received from disposal of subsidiaries or other business
99,000.00
units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 57,626,653.50 5,517,031.65
Cash paid to acquire fixed assets, intangible assets and other
9,761,832.21 13,423,916.49
long-term assets
Cash paid for investment 300,000,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 309,761,832.21 13,423,916.49
Net cash flows from investing activities -252,135,178.71 -7,906,884.84
19
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Jan.-Mar. 2014 Jan.-Mar. 2013
III. Cash flows from financing Activities:
Cash received from capital contributions
Including: Cash received from minority shareholder investments
by subsidiaries
Cash received from borrowings 338,139,940.00 125,387,600.00
Cash received from issuance of bonds
Other cash received relating to financing activities 143,957,350.00 106,608,300.00
Subtotal of cash inflows from financing activities 482,097,290.00 231,995,900.00
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or
944,183.18 163,955.50
profit
Including: dividends or profit paid by subsidiaries to minority
shareholders
Other cash payments relating to financing activities 12,304,200.00
Sub-total of cash outflows from financing activities 13,248,383.18 163,955.50
Net cash flows from financing activities 468,848,906.82 231,831,944.50
IV. Effect of foreign exchange rate changes on cash and cash
5,104,545.71 -1,551,459.05
equivalents
V. Net increase in cash and cash equivalents 206,230,264.35 193,964,560.69
Add: Opening balance of cash and cash equivalents 834,088,959.68 759,361,575.52
VI. Closing balance of cash and cash equivalents 1,040,319,224.03 953,326,136.21
Legal representative: Jian Derong Chief of the accounting work: Chen Zongyi Chief of the accounting organ: Chen Zongyi
20
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
6. Cash flow statement of the Company
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 56,243,897.26 9,750,164.61
Tax refunds received
Other cash received relating to operating activities 14,183,210.67 13,777,633.02
Subtotal of cash inflows from operating activities 70,427,107.93 23,527,797.63
Cash paid for goods and services 54,480,417.57 3,509,553.52
Cash paid to and for employees 9,944,933.01 10,134,529.22
Various taxes paid 1,184,029.17 416,609.55
Other cash payment relating to operating activities 2,291,960.23 16,986,336.66
Subtotal of cash outflows from operating activities 67,901,339.98 31,047,028.95
Net cash flows from operating activities 2,525,767.95 -7,519,231.32
II. Cash flows from investing activities:
Cash received from retraction of investments
Cash received from return on investments
Net cash received from disposal of fixed assets, intangible assets and
797,450.00
other long-term assets
Net cash received from disposal of subsidiaries or other business units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 0.00 797,450.00
Cash paid to acquire fixed assets, intangible assets and other long-term
735.90
assets
Cash paid for investment
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 735.90 0.00
Net cash flows from investing activities -735.90 797,450.00
III. Cash flows from financing activities:
Cash received from capital contributions
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or profit
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities
Net cash flows from financing activities
IV. Effect of foreign exchange rate changes on cash and cash equivalents 6,996.02 -3,986.18
V. Net increase in cash and cash equivalents 2,532,028.07 -6,725,767.50
Add: Opening balance of cash and cash equivalents 11,811,615.43 17,652,594.45
VI. Closing balance of cash and cash equivalents 14,343,643.50 10,926,826.95
Legal representative: Jian Derong Chief of the accounting work: Chen Zongyi Chief of the accounting organ: Chen Zongyi
21
Report for the First Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
II. Audit report
Is this report audited?
□ Yes √ No
This report is not audited.
22
