Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Report for the Third Quarter of 2014
October 2014
1
Report for the Third 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.
All directors attended the board session for reviewing this report.
Mr. Pan Zhirong, company principal, and Mr. Wu Yanru, 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.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
2
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Section II. Financial Highlights & Change of Shareholders
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
√Yes □ No
Unit: RMB Yuan
31 Dec. 2013 Increase/decrease
Item 30 Sept. 2014
Before adjustment After adjustment (%)
Total assets 1,973,760,692.71 1,690,801,284.83 1,690,801,284.83 16.74
Net assets attributable to shareholders of the
533,787,088.42 520,693,211.26 520,693,211.26 2.51
Company
YoY
YoY
Item Jul.-Sept. 2014 Jan.-Sept. 2014 increase/decrease
increase/decrease (%)
(%)
Operating revenues 544,321,965.08 -6.78 1,434,538,264.59 -1.86
Net profit attributable to shareholders of the Company 23,906,043.41 22.01 38,764,033.17 29.13
Net profit attributable to shareholders of the Company
14,878,507.92 48.63 31,926,110.61 197.87
after extraordinary gains and losses
Net cash flows from operating activities -26,465,562.40 -128.15 -59,545,501.43 -294.42
Basic EPS 0.13 18.18 0.21 31.25
Diluted EPS 0.13 18.18 0.21 31.25
Weighted average ROE (%) 4.48 0.54 7.30 1.26
Notes: Retrospect and adjust the reclassification of the items of the long-term equity investment of the year-begin into the
available-for-sale financial assets according to the execution of the newly revised ASBE from 1 Jul. 2014, of which the affected
amount was of RMB 40,000.
3
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Item Amount as of Jan.-Sept. 2014 Note
Gains/losses on the disposal of non-current assets (including the offset 1,626,802.03
part of asset 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 2,907,997.00
or amounts according to the country’s unified standards
Capital occupation charges on non-financial enterprises that recorded
into current gains and losses
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 for business reorganization, such as expenses for staffing,
reorganization 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 Gains on sale of forward
and tradable financial liabilities, as well as investment income from exchange contracts, fair
disposal of tradable financial assets and tradable financial liabilities and -1,164,083.02 value changes, wealth
financial assets available for sales, except for effective hedging related management products and
with normal businesses of the Company other current assets
Reversal of impairment provisions for the accounts receivable on which
impairment tests were carried out separately
Gain/loss on external 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 incomes and expenses other than the above 6,153,238.27
Other gain/loss items that meet the definition of an extraordinary Payments from customers
gain/loss 1,285,415.02 that had been written off
were recovered
Less: Income tax effects 1,013,217.11
Minority interests effects (after tax) 2,958,229.63
Total 6,837,922.56
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
In the reporting period, the Company did not classify any extraordinary gain/loss item as defined or particularized in the
as a recurrent gain/loss item.
4
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
II. Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the
period-end
Unit: share
Total number of common shareholders at the period-end 23,981
Shareholdings of the top ten common shareholders
Number of Pledged or frozen shares
Name of Nature of Shareholding Number of the
restricted shares
shareholder shareholder percentage (%) shares held Status of shares Number of shares
held
FORDCHEE
Foreign
DEVELOPMEN 29.10 5,394,0530 0
corporation
T LIMITED
EUPA
INDUSTRY Foreign
13.83 25,633,718 0
CORPORATION corporation
LIMITED
FILLMAN
Foreign
INVESTMENTS 2.49 4,621,596 0
corporation
LIMITED
Domestic
Chen Yongquan 0.90 1,668,747 0
individual
Foreign
Xia Qianru 0.70 1,299,545 0
individual
Foreign
Zou Shilin 0.56 1,030,000 0
individual
Foreign
Chen Lijuan 0.55 1,012,791 0
individual
Domestic
Ding Xiaolun 0.55 1,010,518 0
individual
Foreign
Chen Yongqing 0.53 981,598 0
individual
CSC
Foreign
SECURITIES 0.43 789,212 0
corporation
(HK) LTD.
Shareholdings of the top ten circulating shareholders
Type of shares
Name of shareholder Number of circulating shares held at the period-end
Type Number
Domestically
FORDCHEE DEVELOPMENT
53,940,530 listed foreign 53,940,530
LIMITED
shares
Domestically
EUPA INDUSTRY
25,633,718 listed foreign 25,633,718
CORPORATION LIMITED
shares
Domestically
FILLMAN INVESTMENTS
4,621,596 listed foreign 4,621,596
LIMITED
shares
Domestically
Chen Yongquan 1,668,747 listed foreign 1,668,747
shares
Domestically
Xia Qianru 1,299,545 listed foreign 1,299,545
shares
Domestically
Zou Shilin 1,030,000 listed foreign 1,030,000
shares
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Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Domestically
Chen Lijuan 1,012,791 listed foreign 1,012,791
shares
Domestically
Ding Xiaolun 1,010,518 listed foreign 1,010,518
shares
Domestically
Chen Yongqing 981,598 listed foreign 981,598
shares
Domestically
CSC SECURITIES (HK) LTD. 789,212 listed foreign 789,212
shares
Explanation on associated The top three shareholders are the Company’s corporate controlling shareholders. It is
relationship or persons acting in unknown whether the other shareholders of tradable shares are related parties or
concert among the above-mentioned acting-in-concert parties as prescribed in the Administrative Methods for Disclosure of the
shareholders Shareholding Changes of the Listed Company’s Shareholders.
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carry out any agreed
buy-back in the reporting period?
□ Yes √ No
None of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carried out any agreed
buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred share holders at the
period-end
□ Applicable √ Inapplicable
6
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting
period, as well as reasons for the changes
√ Applicable □ Inapplicable
Unit: RMB Yuan
Increase/d
Item 30 Sept. 2014 31 Dec. 2013 ecrease Main reason for the change
(%)
Financial assets measured at fair
value and of which changes are Reversed evaluation of the forward exchange contracts
0.00 21,120,100.00 -100.00
recorded into current gains and undelivered at the beginning of the year
losses
Notes receivable 3,427,489.20 2,467,447.00 38.91 Notes receivable were undue in the current period.
Prepayments 16,852,608.37 4,290,802.70 292.76 Raw material procurement increased.
Interest receivable 10,484,684.49 110,833.33 9,359.87 Term deposits increased.
Other current assets 270,000,000.00 50,000,000.00 440.00 Wealth management products purchased increased.
Construction in progress 212,639.80 10,889,671.98 -98.05 Plants were completed and transferred into fixed assets.
Other non-current assets 2,184,777.08 0.00 100.00 Prepayments for molds and equipment
Short-term borrowings 295,320,000.00 30,484,500.00 868.75 Short-term bank borrowings increased.
Financial liabilities measured at fair
value and of which changes are The evaluated loss on the undelivered forward
490,050.00 0.00 100.00
recorded into current gains and exchange contracts at the end of the reporting period
losses
Accounts received in advance 15,855,193.18 10,431,654.59 51.99 Advances from customers increased.
The export rebates of last year were taken back in the
Taxes and fares payable -2,980,295.71 -17,127,309.97 82.60
current period.
Interest payable 3,270,214.70 108,661.00 2,909.56 Short-term borrowings increased.
Other payables 181,330,112.45 69,376,770.31 161.37 Borrowings from related parties
The forward exchange contracts at the beginning of the
Deferred income tax liabilities 217,333.34 3,258,742.65 -93.33
year failed to generate the expected earnings.
The education fee exemption subsidy was recognized
Other non-current liabilities 0.00 222,600.00 -100.00
in the current period.
Increase/d
Item Jan.-Sept. 2014 Jan.-Sept. 2013 ecrease Main reason for the change
(%)
The business tax and surtaxes on the exempted, offset
Business tax and surtaxes 8,249,924.72 3,167,114.06 160.49
and refunded export tax in the current period
RMB depreciated, and exchange earnings increased, as
Financial expenses -14,125,625.27 4,528,411.70 -411.93
well as the interest income.
Some payments were collected from customers and the
Asset impairment loss 3,558,992.34 10,661,968.28 -66.62
inventory falling price provisions decreased.
The evaluated loss on the undelivered forward
Gains on fair value changes -21,610,150.00 15,628,971.85 -238.27
exchange contracts in the current period
Gains on delivered forward exchange contracts and
Investment gains 20,446,066.98 8,157,579.03 150.64
wealth management products
Non-business incomes 11,558,038.21 7,133,255.72 62.03 Collection of previous rents in the current period
Measurement and treatment according to the articles
Income tax expenses 4,669,389.24 7,399,199.63 -36.89 about the income tax in the accounting standards for
business enterprises
Net cash flows from operating
-59,545,501.43 30,626,995.25 -294.42 The export rebates and the sales income decreased.
activities
Net cash flows from investing Wealth management products and restricted term
-841,214,480.14 -191,851,701.86 -338.47
activities deposits increased.
7
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
II. Progress and influence of significant events, as well as the analysis and explanation on
solutions
√ Applicable □ Inapplicable
(I) Contingency
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 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 US$479,089.06 (amounted to 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 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 RMB 100 million, and a compensation of RMB 7,621,576.
Zhangzhou Intermediate People’s Court had made the first-instance judgment on 15Aug. 2013, the judgment was as followed: (1)
The accuse Tsann Kuen Zhangzhou should pay US $479089.06 which was RMB 3,071,535.78of payment for goods to Xinda Motor
within 15 days from the day of the enforcement of this judgment. (2) The accuser Xinda Motor and third party Boluo county Lian
Yuan Industry Technology Co., Ltd. should pay RMB 1,233,399.70 of liquidated damages to Tsann Kuen Zhangzhou within 15 days
from the day of the enforcement of this judgment. (3) Released 10 batch orders that unredeemed between Xinda Motor, Boluo county
Lian Yuan Industry Technology Co., Ltd. and Tsann Kuen Zhangzhou. (4) Reject other claims of Xinda Motor. (5) Reject other
claims of Tsann Kuen Zhangzhou. After the first-instance judgment, neither party refused to accept the first-instance judgment and
lodged an appeal. As of the date of the report, Tsann Kuen Zhangzhou should pay the book balance of goods US $ 479,089.06 to
Xinda Motor, due to the case is pending; Tsann Kuen Zhangzhou did not recognize the contingent assets RMB 1,233,399.70 to Xinda
Motor.
Besides, the defective motor products provided by Xinda Motor was in total of 104,691 sets, however, the case processing 23,035
sets only, there were 81,656 sets remained untreated. Thus, on 24 Dec. 2013, Tsann Kuen Zhangzhou filed a suit to Zhangzhou
Intermediate People’s Court, and the claims amount was in total of RMB 3,702,957.93. Zhangzhou Intermediate People’s Court has
accepted the case.
8
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
(II) Sales of assets
List of the disposal of the Company which owning to the operation business was as following:
Unit: RMB Ten Thousand Yuan
Relationshi Whether
p between Whether
or not
Net profit Ratio of the or not the
the
contributed the net transaction creditor’
ownershi
to the profits party and p of the
s right
Transaction Company Impact contribute Related-part the and
Disposal Transacti asset Disclosure
party Assets sold from the to the d by the Pricing principle y transaction Company liabilities Disclosure index
date on price period-begin company asset to the or not (applicable
involved
involved
date
has been
to the Company for fully have
disposal to the total related-par transferr been
date profits (%) ty ed fully
transaction transferr
s) ed
Based on the market Under
Tsann Kuen price, and settled www.cninfo.com.cn
(China) Other according contract Related control of Yes Yes 2014.08.09
Enterprise Co., equipments 2014.01.24 10.01 1.17 1.17 0.03 enterprise the same
signed by both actual
Ltd. parties controller
HAVELLS Mould 2014.02.28 42.75 35.28 35.28 0.91 Non-related Inapplicabl
Hard enterprise e
Pinrui 2014.02.28 8.70 7.28 7.28 0.19
equipments
Duobite Other 2014.02.28 0.64 0.55 0.55 0.01
equipments
Hailong Other 2014.02.28 1.20 1.03 1.03 0.03
equipments
Sungwon Other 2014.02.28 2.40 2.05 2.05 0.05
equipments
Yuejia Molding 2014.03.31 6.50 1.34 1.34 0.03
Electron equipments
Other
Yixin 2014.03.31 0.15 0.13 0.13 0.00
equipments
Hard
Yixin equipments 2014.03.31 0.80 0.78 0.78 0.02
Fushun Hard 2014.03.31 11.00 9.61 9.61 0.25
equipments
Huaruixing Bakelite 2014.03.31 1.79 1.71 1.71 0.04
equipments
Yuejia Other 2014.04.30 6.50 1.44 1.44 0.04
Electron equipments
Yixin Molding 2014.04.30 1.17 1.12 1.12 0.03
equipments
Molding
Tu Yibin equipments 2014.04.30 2.50 2.45 2.45 0.06
Tu Yibin Bakelite 2014.04.30 10.00 3.12 3.12 0.08
9
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Relationshi Whether
p between Whether or not
Net profit Ratio of the or not the the
contributed the net transaction ownershi
creditor’
to the profits party and p of the
s right
Company Impact contribute Related-part the and
Transaction Disposal Transacti asset Disclosure
party Assets sold date from the to the d by the
on price period-begin company asset to the Pricing principle y transaction Company involved liabilities date Disclosure index
or not (applicable has been involved
to the Company for fully have
disposal to the total related-par transferr been
date profits (%) ty ed fully
transaction transferr
s) ed
equipments
Pan Xibao Other 2014.04.30 0.50 0.48 0.48 0.01
equipments
DARMONO Electronic 2014.05.10 6.33 -0.21 -0.21 -0.01
equipments
Hewang Bakelite 2014.05.31 6.45 0.72 0.72 0.02
equipments
Haikun Mould 2014.05.31 1.00 0.98 0.98 0.03
Wankun Molding 2014.05.31 4.00 0.96 0.96 0.02
equipments
Huasheng Bakelite 2014.05.31 1.00 0.98 0.98 0.03
equipments
Qiankun Hard 2014.05.31 25.00 8.24 8.24 0.21
equipments
Xindongbao Other 2014.05.31 0.20 0.17 0.17 0.00
equipments
Hongyuan Mould 2014.05.31 5.37 4.98 4.98 0.13
Wang Zhibiao Molding 2014.05.31 1.00 0.98 0.98 0.03
equipments
Baifeng Molding 2014.05.31 3.50 2.79 2.79 0.07
equipments
Other
Li Qinghua equipments 2014.05.31 50.00 1.47 1.47 0.04
DARMONO Electronic 2014.06.23 2.74 -0.05 -0.05 0.00
equipments
Die casting
Yixin equipments 2014.06.30 3.42 3.33 3.33 0.09
Kailianxing Die casting 2014.06.30 5.27 5.02 5.02 0.13
equipments
Hongyuan Mould 2014.06.30 7.86 7.67 7.67 0.20
Golden Lance Hard 2014.06.30 2.50 2.44 2.44 0.06
equipments
Yang Building 2014.06.30 46.70 43.11 43.11 1.11
Xiaodong
10
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Relationshi Whether
p between Whether or not
Net profit Ratio of the or not the the
contributed the net transaction ownershi
creditor’
to the profits party and p of the
s right
Company Impact contribute Related-part the and
Transaction Disposal Transacti asset Disclosure
party Assets sold date from the to the d by the
on price period-begin company asset to the Pricing principle y transaction Company involved liabilities date Disclosure index
or not (applicable has been involved
to the Company for fully have
disposal to the total related-par transferr been
date profits (%) ty ed fully
transaction transferr
s) ed
Hongyuan Mould 2014.07.31 0.80 0.78 0.78 0.02
Yufeng Mould 2014.07.31 0.80 0.78 0.78 0.02
Haikun Mould 2014.07.31 1.05 1.02 1.02 0.03
Xu Huipeng Machinery 2014.07.31 17.50 11.16 11.16 0.29
equipments
Chuangyi Machinery 2014.07.31 13.00 4.81 4.81 0.12
equipments
Hongyuan Mould 2014.08.31 10.81 10.50 10.50 0.27
Haikun Mould 2014.08.31 3.05 2.92 2.92 0.08
Sangmao Transportatio 2014.08.31 8.07 7.91 7.91 0.20
n equipments
Yixin Mould 2014.09.30 4.00 3.80 3.80 0.10
Ruicheng Mould 2014.09.30 2.25 2.18 2.18 0.06
Hongyuan Mould 2014.09.30 6.60 6.45 6.45 0.17
Machinery Inapplicable Inapplicable
Honger 2014.09.30 21.00 1.21 1.21 0.03
equipments
Rao Yumei Machinery 2014.09.30 1.10 0.14 0.14 0.00
equipments
Hongyuan Mould 2014.09.30 2.14 2.08 2.08 0.05
Other
Pan Xibao 2014.09.30 1.50 1.47 1.47 0.04
equipments
Shunkun Other 2014.09.30 4.50 4.41 4.41 0.11
equipments
Jingjing Other 2014.09.30 1.60 1.57 1.57 0.04
equipments
Pinrui Other 2014.09.30 1.80 1.77 1.77 0.05
equipments
Jingjing Machinery 2014.09.30 6.00 5.84 5.84 0.15
equipments
Total 386.52 223.92 223.92 5.77
11
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
(III) Events of the sales of stock odd lots
According to the Notes of Relevant Events of Sales of Stock Odd Lots issued in Jul. 2014 by Shenzhen Branch of SCDC: before 12
Nov. 2001, when adopting the circulated transfer method on the odd lots, during which was also the combination period between
Shenzhen Securities Registration Company Limited and SZSE, the listed companies carried out the business such as equity
distribution, for example, the production odd lots, the odd lots gained by the shareholders should be totally rejected; meanwhile,
those odd lots rejected were calculated concentrated into the special account, which had not distributed to the shareholders. For
perfectly solve the questions of the left over stock odd lots, the odd lots should held by the whole shareholders according to the
instruction and requirements of the CSRC, as well as Shenzhen Branch of SCDC accepted the entrustment of the Company to sale
the odd lots and returned the net profits to the Company. The Company calculated the net profits from the selling of the odd lots into
the relevant accumulation funds projects of the shareholders’ equities and would disclose in the subsequent periodic report. Shenzhen
Branch of SCDC had entrusted Security Agency to concentrated sale the stock odd lots in the third quarter of 2014 and had returned
the net profits to the listed companies before 30 Sep. 2014.
The Company had signed the Agreement of the Listed Companies Entrusting Shenzhen Branch of SCDC of the Sales of Odd Lots
with the latter in Jul. 2014, of which up to 18 Aug. 2014, the price of the stock odd lots should not lower than 93% of the closing
price before the date of the exchange and should sale by the centralized competitive trading method through China Merchants
Securities Co. Ltd.
On 1 Sep. 2014, the Company received the net profits returned from the sales of the odd lots (1,297 shares) by Shenzhen Branch of
SCDC, which amounted to HKD 5,550.29, as well as the Company had calculated the profits into the capital reserve projects
according to the relevant requirements.
12
Report for the Third 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
√Applicable □Inapplicable
Period of
Commitment Commitment maker Contents Time of making Fulfillment
commitmen
commitment t
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 Company, it
committed to increase
the shareholding if the
Company’s stock price The Company’s
lower than HKD 2.40
per share after the stocks resumed
implementation of the trading on 31
shares contraction and Dec. 2012, but
trading resumption, and the Company’s
it would increase no stock price
Within one hasn’t met the
more than 2% shares
condition for
FILLMAN (i.e. 370,780,000 shares) year since shareholding
Other commitments made to of the total shares issued 28 Dec. 2012 the date of
minority shareholders INVESTMENTS increase since
LIMITED by the Company within initial the date of
one year since the date shareholdin
of initial shareholding g increase trading
increase. If the plan on resumption,
increasing holding 2% FILLMAN
shares of the total shares Investment
is completed, if the Limited hasn’t
stock price hasn’t implemented the
reached the target price, shareholding
increase plan.
it will perform relevant
approval procedures,
and propose to CSRC on
continuous
implementation of
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
execute and the plan for the next the condition for shareholding increase since the date of trading resumption, FILLMAN Investment
step (If any) Limited hasn’t implemented the shareholding increase plan.
IV. Predict the 2014 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the beginning of the
year to the end of the next reporting period compared with the same period of the last year according to prediction, as well as
explanations on the reasons
□Applicable √Inapplicable
V. Securities investment
□Applicable √Inapplicable
The Company was not involved in any securities investment of the reporting period.
Shareholdings in other listed companies
□Applicable √Inapplicable
The Company did not have any shareholding in any other listed company in the reporting period.
13
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
VI. Investments in derivatives
√Applicable □Inapplicable
Unit: RMB Ten thousand Yuan
Related- Proportion of the closing
Type of Initial Opening Closing
Relati party Impairment investment amount in the Actual gain/loss in reporting
Operator derivative investment Beginning date Ending date investment investment
on transacti provision Company’s closing net period
investment amount amount amount
on or not assets (%)
Forward
Bank No No 140,508.69 1 Jan. 2014 30 Sep. 2014 95,896.14 74,950.56 140.41 -1,018.70
exchange
Total 140,508.69 -- -- 95,896.14 74,950.56 140.41 -1,018.70
Capital source for derivative investment Self-owned funds
Lawsuit (if any) N/A
Disclosure date of the board
announcement approving the wealth 2013/3/12
management entrustment (if any)
Disclosure date of the general meeting
announcement approving the wealth 2013/5/18
management entrustment (if any)
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.
Analysis on risks and control measures 2. Control measures:
of derivative products held in the (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 actual operation needs and shall not speculate in derivative
reporting period (including but not 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
limited to market risk, liquidity risk, exposure of the existing assets and liabilities and the net risk exposure of assets and liabilities arising from the operation of the Company in the coming
year.
credit risk, operation risk, law risk, etc.)
(2) Staff requirements: Personnel taking part in the investment shall all fully understand the risks of derivative investment and strictly execute the business
operation and risk management mechanisms for derivative investment.
(3) Operation standardization: Before making a derivative investment, the Company shall rationally equip itself with professional personnel for investment
14
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
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. Each subsidiary should
only summit to the Board of Directors of the subsidiary.
(5) Loss limit: The investment loss on a single derivative and all the investment loss shall not exceed 20% of the total investment amount.
(6) Audit system: The audit department audits derivative product trading periodically and submits audit reports to relevant units.
Changes of market prices or fair values (1) Gains and losses affected by completed transaction amount of derivative products was RMB 11.4231 million, and gain from undelivered transaction
in the reporting period of the invested was RMB 21.6101 million in the reporting period, of which the rotation profits of the undelivered forward estimates of the investment derivatives was of
RMB 21.1201 million;
derivatives. And the analysis on the fair
(2) The former contracted bank provided monthly sheets of estimated exchange rates for the undue contracted forward exchanges on the last trading day of
value of the derivatives should include the month.
the specific use methods and the relevant (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
assumptions and parameters. 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 the reporting period and
derivatives in the reporting period those in the last reporting period.
compared to the previous reporting
period
Special opinion from independent
The Company has carried out a strict internal assessment for the financial derivative business and has established a corresponding supervision mechani sm.
directors, sponsor or financial consultant
We are of the opinion that the financial derivative business conducted by the Company is fairly necessary in its routine operation and is in compliance with
on the Company’s derivatives investment
relevant laws and regulations, with the risks controllable.
and risk control
15
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
VII. Researches, visits and interviews received in the reporting period
□Applicable √Inapplicable
The Company did not receive any research, visit or interview in the reporting period.
16
Report for the Third 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 30 Sept. 2014 31 Dec. 2013
Current Assets:
Monetary funds 876,696,655.92 834,088,959.68
Settlement reserves
Intra-group lendings
Financial assets measured at fair value
and of which changes are recorded into 21,120,100.00
current gains and losses
Notes receivable 3,427,489.20 2,467,447.00
Accounts receivable 303,137,855.33 253,823,475.86
Accounts paid in advance 16,852,608.37 4,290,802.70
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable 10,484,684.49 110,833.33
Dividend receivable
Other accounts receivable 30,380,049.25 32,339,652.22
Financial assets purchased under
agreements to resell
Inventories 205,521,066.81 209,824,098.90
Assets held for sale
Non-current assets due within 1 year
Other current assets 270,000,000.00 50,000,000.00
Total current assets 1,716,500,409.37 1,408,065,369.69
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 40,000.00 40,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment
Investing property 52,422,194.24 58,732,511.36
Fixed assets 169,201,195.22 173,152,964.50
Construction in progress 212,639.80 10,889,671.98
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 11,241,081.13 11,803,252.87
R&D expense
Goodwill
Long-term deferred expenses 5,250,903.40 4,355,866.63
Deferred income tax assets 16,707,492.47 23,761,647.80
Other non-current assets 2,184,777.08
Total of non-current assets 257,260,283.34 282,735,915.14
Total assets 1,973,760,692.71 1,690,801,284.83
Current liabilities:
17
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Short-term borrowings 295,320,000.00 30,484,500.00
Borrowings from Central Bank
Customer bank deposits and due to banks
and other financial institutions
Intra-group borrowings
Financial liabilities measured at fair value
and of which changes are recorded into 490,050.00
current gains and losses
Notes payable 23,548,570.11 30,577,887.89
Accounts payable 526,381,749.99 648,629,156.16
Accounts received in advance 15,855,193.18 10,431,654.59
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 44,608,884.21 40,748,328.96
Tax payable -2,980,295.71 -17,127,309.97
Interest payable 3,270,214.70 108,661.00
Dividend payable
Other accounts payable 181,330,112.45 69,376,770.31
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 1,087,824,478.93 813,229,648.94
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 217,333.34 3,258,742.65
Other non-current liabilities 222,600.00
Total non-current liabilities 217,333.34 3,481,342.65
Total liabilities 1,088,041,812.27 816,710,991.59
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 185,391,680.00 185,391,680.00
Capital reserves 278,458,862.55 278,454,447.07
Less: Treasury stock
Specific reserves
Other comprehensive incomes -1,101,939.11 -1,382,202.82
Surplus reserves 11,495,983.58 11,495,983.58
Provisions for general risks
Retained profits 59,542,501.40 46,733,303.43
Foreign exchange difference
Total equity attributable to owners of the 533,787,088.42 520,693,211.26
Company
Minority interests 351,931,792.02 353,397,081.98
Total owners’ (or shareholders’) equity 885,718,880.44 874,090,293.24
Total liabilities and owners’ (or 1,973,760,692.71 1,690,801,284.83
shareholders’) equity
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
18
Report for the Third 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 30 Sept. 2014 31 Dec. 2013
Current Assets:
Monetary funds 10,020,083.34 11,811,615.43
Financial assets measured at fair
value and of which changes are
recorded into current gains and losses
Notes receivable 3,427,489.20 822,974.00
Accounts receivable 49,020,729.10 39,868,837.59
Accounts paid in advance 256,510.53 418,695.09
Interest receivable
Dividend receivable
Other accounts receivable 2,245,875.42 1,195,292.22
Inventories 6,687,135.57 4,346,896.79
Assets held for sale
Non-current assets due within 1 year
Other current assets
Total current assets 71,657,823.16 58,464,311.12
Non-current assets:
Available-for-sale financial assets 40,000.00 40,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 985,814,030.83 985,814,030.83
Investing property 44,886,209.08 48,731,726.97
Fixed assets 600,503.91 646,980.59
Construction in progress 92,700.00
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 313,667.95
R&D expense
Goodwill
Long-term deferred expenses 850,089.02 1,126,312.61
Deferred income tax assets 1,485,791.88 4,228,126.98
Other non-current assets 165,900.00
Total of non-current assets 1,033,842,524.72 1,040,993,545.93
Total assets 1,105,500,347.88 1,099,457,857.05
Current liabilities:
Short-term borrowings
19
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Financial liabilities measured at fair
value and of which changes are
recorded into current gains and losses
Notes payable
Accounts payable 61,660,155.43 87,479,703.39
Accounts received in advance 6,773,829.83 988,253.99
Employee’s compensation payable 2,638,522.62 1,175,146.87
Tax payable 520,266.39 956,841.14
Interest payable
Dividend payable
Other accounts payable 498,219,556.47 491,868,854.25
Liabilities held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 569,812,330.74 582,468,799.64
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 569,812,330.74 582,468,799.64
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 185,391,680.00 185,391,680.00
Capital reserves 271,489,596.88 271,485,181.40
Less: Treasury stock
Specific reserves
Surplus reserves 11,495,983.58 11,495,983.58
Provisions for general risks
Retained profits 67,310,756.68 48,616,212.43
Foreign exchange difference
Total owners’ (or shareholders’) equity 535,688,017.14 516,989,057.41
Total liabilities and owners’ (or
1,105,500,347.88 1,099,457,857.05
shareholders’) equity
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
20
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
3. Consolidated income statement for the reporting period
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jul.-Sept. 2014 Jul.-Sept. 2013
I. Total operating revenues 544,321,965.08 583,904,520.84
Including: Sales income 544,321,965.08 583,904,520.84
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 525,887,541.49 567,928,499.28
Including: Cost of sales 460,219,102.58 500,908,030.67
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 3,319,615.53 1,488,948.41
Selling and distribution expenses 19,897,087.88 19,879,125.53
Administrative expenses 42,240,352.84 37,111,897.89
Financial expenses -2,908,650.92 658,864.99
Asset impairment loss 3,120,033.58 7,881,631.79
Add: Gain/(loss) from change in fair
5,158,021.00 8,279,752.55
value (“-” means loss)
Gain/(loss) from investment (“-”
6,445,948.48 4,581,233.73
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means loss) 30,038,393.07 28,837,007.84
21
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Add: non-operating income 2,737,189.92 2,423,582.71
Less: non-operating expense 128,227.96 274,598.78
Including: loss from non-current
2.63 -1,883.61
asset disposal
IV. Total profit (“-” means loss) 32,647,355.03 30,985,991.77
Less: Income tax expense 1,711,949.34 6,259,756.81
V. Net profit (“-” means loss) 30,935,405.69 24,726,234.96
Including: Net profit achieved by
combined parties before the
combinations
Attributable to owners of the
23,906,043.41 19,592,714.88
Company
Minority shareholders’ income 7,029,362.28 5,133,520.08
VI. Earnings per share -- --
(I) Basic earnings per share 0.13 0.11
(II) Diluted earnings per share 0.13 0.11
VII. Other comprehensive incomes 4,133.24 820,625.65
Including: Other comprehensive
incomes items that cannot be
reclassified as gains and losses in the
subsequent accounting periods
Other comprehensive incomes items
that will be reclassified as gains and
4,133.24 820,625.65
losses in the subsequent accounting
periods as relevant requirements are met
VIII. Total comprehensive incomes 30,939,538.93 25,546,860.61
Attributable to owners of the
23,910,176.65 20,413,340.53
Company
Attributable to minority shareholders 7,029,362.28 5,133,520.08
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
22
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
4. Income statement of the Company for the reporting period
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jul.-Sept. 2014 Jul.-Sept. 2013
I. Total sales 58,442,043.78 40,524,927.07
Less: cost of sales 48,755,369.75 33,099,529.79
Business taxes and surcharges 485,845.98 312,085.42
Distribution expenses 2,041,280.17 943,995.42
Administrative expenses 2,695,990.94 1,974,957.97
Financial costs -35,304.63 -39,655.11
Impairment loss 899,716.50 295,432.27
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
35,736,850.78
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) 3,599,145.07 39,675,432.09
Add: non-business income 107,652.70 185,855.03
Less: non-business expense -267.92
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) 3,706,797.77 39,861,555.04
Less: income tax expense 1,346,073.08
IV. Net profit (“-” means loss) 2,360,724.69 39,861,555.04
V. Earnings per share -- --
(I) Basic earnings per share 0.01 0.22
(II) Diluted earnings per share 0.01 0.22
VI. Other comprehensive income
Including: Other comprehensive
incomes items that cannot be
reclassified as gains and losses in the
subsequent accounting periods
Other comprehensive incomes items
that will be reclassified as gains and
losses in the subsequent accounting
periods as relevant requirements are met
VII. Total comprehensive income 2,360,724.69 39,861,555.04
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
23
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
5. Consolidated income statement for Jan.-Sept. 2014
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Total operating revenues 1,434,538,264.59 1,461,748,728.64
Including: Sales income 1,434,538,264.59 1,461,748,728.64
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 1,389,310,291.72 1,448,063,018.66
Including: Cost of sales 1,222,193,517.04 1,263,570,802.30
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 8,249,924.72 3,167,114.06
Selling and distribution expenses 54,280,542.64 54,172,998.07
Administrative expenses 115,152,940.25 111,961,724.25
Financial expenses -14,125,625.27 4,528,411.70
Asset impairment loss 3,558,992.34 10,661,968.28
Add: Gain/(loss) from change in fair
-21,610,150.00 15,628,971.85
value (“-” means loss)
Gain/(loss) from investment (“-”
20,446,066.98 8,157,579.03
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 44,063,889.85 37,472,260.86
24
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
Add: non-operating income 11,558,038.21 7,133,255.72
Less: non-operating expense 870,000.91 1,101,033.90
Including: loss from non-current
2,629.81 155,231.64
asset disposal
IV. Total profit (“-” means loss) 54,751,927.15 43,504,482.68
Less: Income tax expense 4,669,389.24 7,399,199.63
V. Net profit (“-” means loss) 50,082,537.91 36,105,283.05
Including: Net profit achieved by
combined parties before the
combinations
Attributable to owners of the
38,764,033.17 30,018,395.73
Company
Minority shareholders’ income 11,318,504.74 6,086,887.32
VI. Earnings per share -- --
(I) Basic earnings per share 0.21 0.16
(II) Diluted earnings per share 0.21 0.16
VII. Other comprehensive incomes 280,263.71 3,456,446.14
Including: Other comprehensive
incomes items that cannot be
reclassified as gains and losses in the
subsequent accounting periods
Other comprehensive incomes items
that will be reclassified as gains and
losses in the subsequent accounting 280,263.71 3,456,446.14
periods as relevant requirements are
met
VIII. Total comprehensive incomes 50,362,801.62 39,561,729.19
Attributable to owners of the
39,044,296.88 33,474,841.87
Company
Attributable to minority shareholders 11,318,504.74 6,086,887.32
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
25
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
6. Income statement of the Company for Jan.-Sept. 2014
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Total sales 101,050,036.42 75,971,039.26
Less: cost of sales 77,835,613.62 58,279,580.95
Business taxes and surcharges 1,152,004.18 762,011.18
Distribution expenses 5,040,950.06 3,240,960.78
Administrative expenses 8,274,173.54 3,842,173.15
Financial costs 236,803.63 -267,849.13
Impairment loss -598,460.81 405,268.45
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
38,189,978.21 35,744,383.78
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) 47,298,930.41 45,453,277.66
Add: non-business income 128,575.86 1,007,562.97
Less: non-business expense 35,791.72
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) 47,391,714.55 46,460,840.63
Less: income tax expense 2,742,335.10
IV. Net profit (“-” means loss) 44,649,379.45 46,460,840.63
V. Earnings per share -- --
(I) Basic earnings per share 0.24 0.25
(II) Diluted earnings per share 0.24 0.25
VI. Other comprehensive income
Including: Other comprehensive
incomes items that cannot be
reclassified as gains and losses in the
subsequent accounting periods
Other comprehensive incomes items
that will be reclassified as gains and
losses in the subsequent accounting
periods as relevant requirements are
met
VII. Total comprehensive income 44,649,379.45 46,460,840.63
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
26
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
7. Consolidated cash flow statement for Jan.-Sept. 2014
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Cash flows from operating activities:
Cash received from sale of
1,360,412,327.85 1,380,758,155.33
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 154,669,374.04 189,790,665.78
Other cash received relating to
73,864,346.39 75,085,751.06
operating activities
Subtotal of cash inflows from operating
1,588,946,048.28 1,645,634,572.17
activities
Cash paid for goods and services 1,257,184,026.76 1,242,889,727.19
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 184,072,607.32 165,587,165.60
Various taxes paid 22,474,160.98 23,474,710.14
Other cash payment relating to
184,760,754.65 183,055,973.99
operating activities
Subtotal of cash outflows from
1,648,491,549.71 1,615,007,576.92
operating activities
Net cash flows from operating activities -59,545,501.43 30,626,995.25
II. Cash flows from investing activities:
Cash received from withdrawal of
231,422,984.72 78,200,523.88
investments
Cash received from return on 8,692,082.35 595,809.26
27
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
investments
Net cash received from disposal of
fixed assets, intangible assets and other 3,330,778.97 7,562,195.16
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
243,445,846.04 86,358,528.30
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 33,255,449.23 38,210,230.16
assets
Cash paid for investment 440,000,000.00 240,000,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
611,404,876.95
investing activities
Subtotal of cash outflows from
1,084,660,326.18 278,210,230.16
investing activities
Net cash flows from investing activities -841,214,480.14 -191,851,701.86
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 672,464,728.00 523,133,116.00
Cash received from issuance of
bonds
Other cash received relating to
143,957,350.00 145,163,058.59
financing activities
Subtotal of cash inflows from financing
816,422,078.00 668,296,174.59
activities
Repayment of borrowings 410,050,948.00 313,945,640.00
Cash paid for interest expenses and
43,214,926.25 29,460,324.16
distribution of dividends or profit
Including: dividends or profit paid
12,877,215.94 13,307,306.29
by subsidiaries to minority shareholders
Other cash payments relating to
33,837,950.00
financing activities
Sub-total of cash outflows from
487,103,824.25 343,405,964.16
financing activities
Net cash flows from financing activities 329,318,253.75 324,890,210.43
IV. Effect of foreign exchange rate
2,644,547.11 -13,005,222.92
changes on cash and cash equivalents
V. Net increase in cash and cash
-568,797,180.71 150,660,280.90
equivalents
Add: Opening balance of cash and
834,088,959.68 759,361,575.52
cash equivalents
VI. Closing balance of cash and cash
265,291,778.97 910,021,856.42
equivalents
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
28
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
8. Cash flow statement of the Company for Jan.-Sept. 2014
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Cash flows from operating activities:
Cash received from sale of
94,631,963.05 47,864,119.34
commodities and rendering of service
Tax refunds received
Other cash received relating to
417,492,388.45 38,688,048.99
operating activities
Subtotal of cash inflows from operating
512,124,351.50 86,552,168.33
activities
Cash paid for goods and services 115,910,450.05 9,246,183.76
Cash paid to and for employees 5,402,684.19 3,954,781.98
Various taxes paid 5,504,014.56 4,650,129.67
Other cash payment relating to
399,623,261.39 101,312,428.51
operating activities
Subtotal of cash outflows from
526,440,410.19 119,163,523.92
operating activities
Net cash flows from operating activities -14,316,058.69 -32,611,355.59
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on
38,189,978.21 35,744,383.78
investments
Net cash received from disposal of
fixed assets, intangible assets and other 85,700.00 797,450.00
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
38,275,678.21 36,541,833.78
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 400,135.90 48,810.76
assets
29
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
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
400,135.90 48,810.76
investing activities
Net cash flows from investing activities 37,875,542.31 36,493,023.02
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
25,337,391.98 15,758,292.80
distribution of dividends or profit
Other cash payments relating to
financing activities
Sub-total of cash outflows from
25,337,391.98 15,758,292.80
financing activities
Net cash flows from financing activities -25,337,391.98 -15,758,292.80
IV. Effect of foreign exchange rate
-13,623.73 -37,459.99
changes on cash and cash equivalents
V. Net increase in cash and cash
-1,791,532.09 -11,914,085.36
equivalents
Add: Opening balance of cash and
11,811,615.43 17,652,594.45
cash equivalents
VI. Closing balance of cash and cash
10,020,083.34 5,738,509.09
equivalents
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
30
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
II. Audit report
Is this report audited?
□ Yes √ No
This report is not audited.
31
