Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
Tsann Kuen (China) Enterprise Co., Ltd.
Report for the First Quarter of 2015
Apr. 2015
1
Report for the First Quarter of 2015 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. Panzhirong, 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 First Quarter of 2015 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
Item Jan.-Mar. 2015 Jan.-Mar. 2014 +/- (%)
Operating revenues 453,454,308.58 424,258,718.53 6.88
Net profit attributable to shareholders of the
7,995,185.44 5,447,385.36 46.77
Company
Net profit attributable to shareholders of the
2,993,743.17 11,424,272.23 -73.79
Company after extraordinary gains and losses
Net cash flows from operating activities -36,982,666.95 -15,588,009.47 -137.25
Basic EPS (Yuan/share) 0.04 0.03 33.33
Diluted EPS (Yuan/share) 0.04 0.03 33.33
Weighted average ROE (%) 1.45 1.04 0.41
Item 31 Mar. 2015 31 Dec. 2014 +/- (%)
Total assets 1,779,320,126.34 1,651,024,619.41 7.77
Net assets attributable to shareholders of the
554,821,340.14 546,574,409.55 1.51
Company
3
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
Items and amounts of extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item Jan.-Mar. 2015 Explanation
Gains/losses on the disposal of non-current assets (including the offset part of
630,473.82
the 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 or amounts 1,303,299.00
according to the government’s unified standards
Capital occupation charges on non-financial enterprises that are 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 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 net gains and losses of subsidiaries acquired in business combination
under the same control from period-begin to combination date
Gain/loss on contingent events irrelevant to the Company’s normal business
Mainly were the revenues of
Gains and losses on change in fair value from tradable financial assets and
selling the foreign exchange
tradable financial liabilities, as well as investment income from disposal of
forward transaction investment,
tradable financial assets and tradable financial liabilities and financial assets 5,617,117.62
changes in fair value and other
available for sales except for effective hedging related with normal businesses
current assets revenues of the
of the Company
finance products
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 291,380.63
Other gain and loss items that meet the definition of an extraordinary gain/loss
Less: Income tax effects 1,169,274.51
Minority interests effects (after tax) 1,671,554.29
Total 5,001,442.27
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
4
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders
1. Total number of common shareholders at the period-end and shareholdings of top 10 common
shareholders
Unit: share
Total number of common
22,157
shareholders at the period-end
Shareholdings of top 10 common shareholders
Number of Pledged or frozen shares
Nature of Shareholding Number of shares
Name of shareholder restricted shares
shareholder percentage (%) held Status of shares Number of shares
held
FORDCHEE
Foreign
DEVELOPMENT 29.10% 53,940,530 N/A N/A
corporation
LIMITED
EUPA INDUSTRY
Foreign
CORPORATION 13.83% 25,633,718 N/A N/A
corporation
LIMITED
FILLMAN
Foreign
INVESTMENTS 2.49% 4,621,596 N/A N/A
corporation
LIMITED
Domestic
Chen Yongquan natural 0.95% 1,760,147 N/A N/A
person
Domestic
Xia Qianru natural 0.70% 1,299,545 N/A N/A
person
Foreign
Chen Lijuan natural 0.57% 1,051,791 N/A N/A
person
Foreign
Chen Yongqing natural 0.56% 1,037,898 N/A N/A
person
Domestic
Ding Xiaolun natural 0.56% 1,032,018 N/A N/A
person
Domestic
Xie Qingjun natural 0.56% 1,030,000 N/A N/A
person
Foreign
WU CHI LI natural 0.53% 980,096 N/A N/A
person
Shareholdings of top 10 non-restricted common shareholders
Name of shareholder Number of non-restricted common shares held Variety of shares
5
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
Variety Number
FORDCHEE DEVELOPMENT Domestically
53,940,530 listed foreign 53,940,530
LIMITED shares
EUPA INDUSTRY CORPORATION Domestically
25,633,718 listed foreign 25,633,718
LIMITED shares
FILLMAN INVESTMENTS Domestically
4,621,596 listed foreign 4,621,596
LIMITED shares
Domestically
Chen Yongquan 1,760,147 listed foreign 1,760,147
shares
Domestically
Xia Qianru 1,299,545 listed foreign 1,299,545
shares
Domestically
Chen Lijuan 1,051,791 listed foreign 1,051,791
shares
Domestically
Chen Yongqing 1,037,898 listed foreign 1,037,898
shares
Domestically
Ding Xiaolun 1,032,018 listed foreign 1,032,018
shares
Domestically
Xie Qingjun 1,030,000 listed foreign 1,030,000
shares
Domestically
WU CHI LI 980,096 listed foreign 980,096
shares
Explanation on associated The top three shareholders are the Company’s corporate controlling shareholders. It is unknown
relationship or persons acting in to the Company whether there exists associated relationship among the shareholders above or
concert among the above-mentioned they are acting-in-concert entities as stipulated in the Administrative Measures on Information
shareholders Disclosure of Changes in Shareholding of Listed Companies.
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company conduct any
promissory repo during the reporting period?
□ Yea √ No
2. Total number of preferred shareholders at the period-end and shareholdings of top 10 preferred
shareholders
□ Applicable √ Inapplicable
6
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
Section III. Significant Events
I. Significant changes in 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
Item 31 Mar. 2015 31 Dec. 2014 +/-% Main reasons for the change
Financial assets measured at
The expected gains on forward foreign exchange
fair value with changes
3,910,800.00 2,610,000.00 49.84 contracts increased on RMB depreciation at the
recorded into current gains and
period-end.
losses
Notes receivable 4,907,057.29 2,004,498.59 144.80 Some notes receivable were undue.
Opening term deposits became due and the
Interest receivable 2,420,302.66 3,590,399.84 -32.59
relevant interest was received.
Wealth management products of RMB 330 million
Other current assets 347,641,923.44 13,087,495.75 2,556.29
were purchased.
Expense on enclosure construction and land
Construction in progress 459,967.01 233,968.67 96.59
ownership certificates
Other non-current assets 2,778,530.49 1,929,374.75 44.01 Prepayments for equipment increased.
Short-term borrowings 272,529,414.00 61,190,000.00 345.38 Short-term borrowings from banks increased.
Financial liabilities measured
The forward foreign exchange transactions
at fair value with changes
744,974.03 3,956,259.85 -81.17 appraised at the beginning of the year generated
recorded into current gains and
gains in the current period.
losses
Notes payable 17,453,976.17 29,749,982.77 -41.33 Due notes payable were settled.
Interest payable 352,036.05 68,275.80 415.61 Short-term borrowings from banks increased.
The expected gains on forward foreign exchange
Deferred income tax liabilities 814,947.53 618,966.78 31.66
contracts increased.
Item Jan.-Mar. 2015 Jan.-Mar. 2014 +/-% Main reasons for the change
The same period of last year saw an effect of RMB
1.3 million in this item in relation to tax exemption
Business tax and surtaxes 1,271,419.53 2,430,498.24 -47.69
and offset while the current period saw no such
expenses.
The export expenses and the advertising promotion
Selling expenses 20,838,172.33 15,550,356.79 34.00
expenses both increased.
In the same period of last year, some customers ’
Asset impairment losses -887,025.98 -5,248,202.75 83.10 payments were collected, reversing the relevant
bad-debt provisions.
The appraised gains on forward foreign exchange
Gains on fair value changes 4,512,085.82 -23,960,252.94 118.83
contracts
The gains on settled forward foreign exchange
Investment gains 1,105,031.80 7,075,877.04 -84.38 contracts decreased and there were no gains on
wealth management products.
Non-operating incomes 2,229,112.34 7,623,739.38 -70.76 The subsidy income decreased.
Adjusted according to the income tax accounting
Income tax expenses -378,618.00 -909,585.09 58.37
estimation.
Net cash flows from operating The time difference between two stages of export
-36,982,666.95 -15,588,009.47 -137.25
activities tax rebates.
Wealth management products and fixed assets
Net cash flows from investing
-350,155,153.04 -252,135,178.71 -38.88 increased while the gains on settled forward
activities
foreign exchange contracts decreased.
Export financings decreased and the Company did
Net cash flows from financing
211,021,879.00 468,848,906.82 -54.99 not borrow from the controlling shareholder in the
activities
current period.
7
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
II. Progress of significant events and analysis & explanations on their influence and solutions
√ Applicable □ Inapplicable
(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 23
Dec. 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. Fujian Province Higher People's Court had hold a hearing on 26
Mar. 2014 and 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
3,770,430.64 and Zhangzhou Intermediate People's Court had accepted and heard the case.
Index to the relevant announcement
Overview of the significant event Disclosure date
disclosed on the website
The progress events of the appeal between the Company’s
22 Feb. 2014 http://www.cninfo.com.cn/
controlling subsidiary—Zhangzhou Tsann Kuen and Xinda Motor
Events of the Company’s controlling subsidiary—Zhangzhou Tsann
27 Dec. 2013 http://www.cninfo.com.cn/
Kuen separately sued Xinda Motor
8
Report for the First Quarter of 2015 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
Whether
Proportion of Related Whether
Net profit the
the net profit relationshi the
contributed by involvin
contributed by p with the involvin
the sold asset g claims
the sold asset Whether was counterpar g
Transaction Selling to the listed Influence on and Disclosure Disclosure
Asset sold Selling date to the listed Pricing principle related party ty (applied property
party price companies the Company debts date index
companies of transaction for the right had
from had
the total related wholly
period-begin wholly
amount of the transaction transferr
to date of sale transferr
net profit (%) ) ed
ed
Machinery
Xinwang 2015.1.31 2.50 2.45 2.45 0.31
devices
Nanyanghua Other
2015.1.31 1.51 1.29 1.29 0.16
n devices
Machinery
Jinyuan 2015.1.31 8.00 3.09 3.09 0.39
devices
Machinery
Li Qinghua 2015.1.31 9.00 3.20 3.20 0.40
devices
Mould
Ruicheng 2015.1.31 3.40 3.26 3.26 0.41
devices
Liao Machinery
2015.1.31 12.80 2.04 2.04 0.26
Sezhong devices
The transaction prices
Zheng Machinery
2015.1.31 1.30 0.54 0.54 0.07 were decided based on
Wenhui devices
the market price and Inapplicab Inapplicab Inapplicab
SHANGHAI Non-related party Yes Yes
Mould settled according to the le le le
EXCELLEN 2015.1.31 115.00 22.72 22.72 2.84
devices signed contract of both
CE parties
Machinery
Li Yiming 2015.3.31 10.50 3.72 3.72 0.47
devices
Machinery
Xinwang 2015.3.31 0.25 0.25 0.25 0.03
devices
Haichengxin Electronic
2015.3.31 0.80 0.78 0.78 0.10
g devices
Mould
Baoxing 2015.3.31 0.40 0.39 0.39 0.05
devices
Mould
Hongyuan 2015.3.31 13.93 13.34 13.34 1.67
devices
Transportati
Gusong 2015.3.31 6.5 6.36 6.36 0.80
on devices
Total 185.89 63.43 63.43 7.96
9
Report for the First Quarter of 2015 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
Time of Period of
Commitment Commitment maker Contents making commitme Fulfillment
commitment nt
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
was lower than
HKD2.40 per share after
the implementation of The Company’s
the shares contraction stocks resumed
and trading resumption, trading on 31 Dec.
and it would increase no 2012, but the
more than 2% shares Company’s stock
price hasn’t met the
(i.e. 370,780,000 shares)
FILLMAN of the total shares issued condition for
Other commitments made to minority Long-term shareholding
shareholders INVESTMENTS by the Company within 28 Dec. 2012 effective
LIMITED) one year since the date increase since the
of initial shareholding date of trading
increase. If the plan on resumption,
increasing holding 2% FILLMAN
shares of the total shares Investment Limited
is completed, if the hasn’t implemented
stock price hasn’t the shareholding
increase plan.
reached the target price,
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 execute The Company’s stocks resumed trading on 31 Dec. 2012, but the Company’s stock price hasn’t
and the plan for the next step (If any) met the condition forhasn’t implemented the shareholdingdate of trading resumption, FILLMAN
shareholding increase since the
Investment Limited increase plan.
IV. Predict the operating results of Jan.-Jun. 2015
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
□Applicable √ Inapplicable
VI. Shareholdings in other listed companies
□Applicable √ Inapplicable
10
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
VII. Investments in derivatives
√ Applicable □ Inapplicable
Unit: RMB Ten Thousand Yuan
Proportion of the
Related-part Type of Initial Closing closing investment Actual
Operator Relation y transaction derivative investment Beginning date Ending date Opening Impairmen investment amount in the gain/loss in
or not investment amount investment amount t provision amount Company’s reporting
closing net assets period
(%)
Bank No No Forward 72,325.41 1 Jan. 2015 31 Mar. 2015 61,298.55 52,864.34 95.28 561.71
exchange
Total 72,325.41 -- -- 61,298.55 52,864.34 95.28 561.71
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 actual 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 and the n et risk exposure of assets and liabilities arising from the
Analysis on risks and control measures of derivative operation of the Company in the coming year.
products held in the reporting period (including but not (2) Staff requirements: Personnel taking part in the investment shall all fully understand the risks of derivative investment and strictly execute
limited to market risk, liquidity risk, credit risk, operation the business operation and risk management mechanisms for derivative investment.
risk, law risk, etc.) (3) Operation standardization: Before making a derivative investment, the Company shall rationally equip itself with 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 Boa rd 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.
(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 1.105 million, and loss from undelivered
Changes of market prices or fair values in the reporting transaction was RMB 4.5121 million, of which the of revenue rotation of the undelivered forward exchange assessment was of RMB 1.3463
period of the invested derivatives. And the analysis on the million.
fair value of the derivatives should include the specific use (2) The former contracted bank provided monthly sheets of estimated exchange rates for the undue contracted forward exchanges on the last
methods and the relevant assumptions and parameters. trading day of the month.
(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 the reporting
derivatives in the reporting period compared to the period and those in the last reporting period.
previous 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 corresponding supervision
financial consultant on the Company’s derivatives mechanism. We are of the opinion that the financial derivative business conducted by the Company is fairly necessary in its routine operation
investment and risk control and is in compliance with relevant laws and regulations, with the risks controllable.
11
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
VIII. Researches, visits and interviews received in the reporting period
√ Applicable □ Inapplicable
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided by the
Company
Operating situation of the
Company, whether the
The office of the Telephone
30 Jan. 2015 Individual Mr. Zhang Indonesia factory could
Company Communication
reverse a loss; had not offer
any written sources.
Operating situation of the
The office of the Telephone Company, relevant policies
13 Mar. 2015 Individual Mr. Chen
Company Communication of B shares; had not offer any
written sources.
Operating situation of the
The office of the Telephone Company, relevant policies
23 Mar. 2015 Individual Ms. Liu
Company Communication of B shares; had not offer any
written sources.
12
Report for the First Quarter of 2015 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 715,597,380.90 886,464,448.01
Settlement reserves
Intra-group lendings
Financial assets measured at fair value of which changes
3,910,800.00 2,610,000.00
are recorded in current profits and losses
Derivative financial assets
Notes receivable 4,907,057.29 2,004,498.59
Accounts receivable 241,124,201.42 247,336,334.86
Accounts paid in advance 10,297,673.78 12,758,696.10
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable 2,420,302.66 3,590,399.84
Dividend receivable
Other accounts receivable 37,832,748.99 34,873,104.97
Financial assets purchased under agreements to resell
Inventories 163,649,409.48 193,150,144.07
Assets held for sale
Non-current assets due within 1 year
Other current assets 347,641,923.44 13,087,495.75
Total current assets 1,527,381,497.96 1,395,875,122.19
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 real estate 48,312,902.04 50,370,557.48
Fixed assets 163,745,147.21 166,921,066.06
Construction in progress 459,967.01 233,968.67
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 12,707,621.00 12,145,423.16
R&D expense
Goodwill
Long-term deferred expenses 4,531,213.93 4,797,144.17
Deferred income tax assets 19,363,246.70 18,711,962.93
Other non-current assets 2,778,530.49 1,929,374.75
Total of non-current assets 251,938,628.38 255,149,497.22
Total assets 1,779,320,126.34 1,651,024,619.41
13
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Closing balance Opening balance
Current liabilities:
Short-term borrowings 272,529,414.00 61,190,000.00
Borrowings from Central Bank
Customer bank deposits and due to banks and other
financial institutions
Intra-group borrowings
Financial liabilities measured at fair value of which 744,974.03 3,956,259.85
changes are recorded in current profits and losses
Derivative financial liabilities
Notes payable 17,453,976.17 29,749,982.77
Accounts payable 454,091,740.57 533,071,295.43
Accounts received in advance 17,064,566.12 14,769,179.12
Financial assets sold for repurchase
Handling charges and commissions payable
Payroll payable 38,982,504.95 45,910,725.14
Tax payable 6,411,750.44 6,521,778.61
Interest payable 352,036.05 68,275.80
Dividend payable
Other accounts payable 58,997,751.89 53,159,623.33
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 866,628,714.22 748,397,120.05
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income
Deferred income tax liabilities 814,947.53 618,966.78
Other non-current liabilities
Total non-current liabilities 814,947.53 618,966.78
Total liabilities 867,443,661.75 749,016,086.83
Owners’ equity:
Share capital 185,391,680.00 185,391,680.00
Other equity instruments
Of which: preferred shares
Perpetual bonds
Capital reserves 278,458,862.55 278,458,862.55
Less: Treasury stock
Other comprehensive income -647,635.05 -899,380.20
Specific reserves
Surplus reserves 16,400,043.27 16,400,043.27
Provisions for general risks
Retained profits 75,218,389.37 67,223,203.93
Total equity attributable to owners of the Company 554,821,340.14 546,574,409.55
Minority interests 357,055,124.45 355,434,123.03
Total owners’ equity 911,876,464.59 902,008,532.58
Total liabilities and owners’ equity 1,779,320,126.34 1,651,024,619.41
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
14
Report for the First Quarter of 2015 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 8,911,498.54 3,236,270.65
Financial assets measured at fair value of
which changes are recorded in current profits
and losses
Derivative financial assets
Notes receivable 4,907,057.29 2,004,498.59
Accounts receivable 31,065,097.20 28,535,190.86
Accounts paid in advance 605,536.03 159,129.74
Interest receivable
Dividend receivable
Other accounts receivable 501,987.84 618,435.08
Inventories 8,841,517.57 9,123,446.86
Assets held for sale
Non-current assets due within 1 year
Other current assets 259,083.99
Total current assets 54,832,694.47 43,936,055.77
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 real estate 42,415,100.80 43,650,654.94
Fixed assets 648,287.44 573,821.18
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 130,500.00
R&D expense
Goodwill
Long-term deferred expenses 665,939.96 758,014.49
Deferred income tax assets 1,741,032.74 1,902,042.53
Other non-current assets 4,000.00
Total of non-current assets 1,031,454,891.77 1,032,742,563.97
Total assets 1,086,287,586.24 1,076,678,619.74
15
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Closing balance Opening balance
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair value of
which changes are recorded in current profits
and losses
Derivative financial liabilities
Notes payable
Accounts payable 60,143,797.89 52,496,435.80
Accounts received in advance 5,598,138.28 5,652,792.49
Payroll payable 1,260,009.26 2,347,177.91
Tax payable 850,755.25 898,026.25
Interest payable
Dividend payable
Other accounts payable 475,336,716.34 475,204,952.74
Liabilities held for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 543,189,417.02 536,599,385.19
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 0.00 0.00
Total liabilities 543,189,417.02 536,599,385.19
Owners’ equity:
Share capital 185,391,680.00 185,391,680.00
Other equity instruments
Of which: preferred shares
Perpetual bonds
Capital reserves 271,489,596.88 271,489,596.88
Less: Treasury stock
Other comprehensive income
Specific reserves
Surplus reserves 16,400,043.27 16,400,043.27
Retained profits 69,816,849.07 66,797,914.40
Total owners’ equity 543,098,169.22 540,079,234.55
Total liabilities and owners’ equity 1,086,287,586.24 1,076,678,619.74
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
16
Report for the First Quarter of 2015 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. 2015 Jan.-Mar. 2014
I. Total operating revenues 453,454,308.58 424,258,718.53
Including: Sales income 453,454,308.58 424,258,718.53
Interest income
Premium income
Handling charge and commission income
II. Total operating costs 452,175,584.80 409,168,627.22
Including: Cost of sales 395,763,311.66 369,674,443.64
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 1,271,419.53 2,430,498.24
Selling and distribution expenses 20,838,172.33 15,550,356.79
Administrative expenses 41,325,920.87 34,218,799.09
Financial expenses -6,136,213.61 -7,457,267.79
Asset impairment loss -887,025.98 -5,248,202.75
Add: Gain/(loss) from change in fair value (“-” means loss) 4,512,085.82 -23,960,252.94
Gain/(loss) from investment (“-” means loss) 1,105,031.80 7,075,877.04
Including: share of profits in associates and joint
ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 6,895,841.40 -1,794,284.59
Add: non-operating income 2,229,112.34 7,623,739.38
Including: Gains on disposal of non-current assets 634,432.71 641,715.41
Less: non-operating expense 3,958.89 57,039.34
Including: Losses on disposal of non-current assets 3,958.89 14,857.02
IV. Total profit (“-” means loss) 9,120,994.85 5,772,415.45
Less: Income tax expense -378,618.00 -909,585.09
17
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Jan.-Mar. 2015 Jan.-Mar. 2014
V. Net profit (“-” means loss) 9,499,612.85 6,682,000.54
Net profit attributable to owners of the Company 7,995,185.44 5,447,385.36
Minority shareholders’ income 1,504,427.41 1,234,615.18
VI. After-tax net amount of other comprehensive incomes 251,745.15 1,534,422.53
After-tax net amount of other comprehensive incomes
attributable to owners of the Company 251,745.15 1,534,422.53
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive
incomes in investees that cannot be reclassified into gains
and losses under the equity method
(II) Other comprehensive incomes that will be
reclassified into gains and losses 251,745.15 1,534,422.53
1. Enjoyable shares in other comprehensive
incomes in investees that will be reclassified into gains and
losses under the equity method
2. Gains and losses on fair value changes of
available-for-sale financial assets
3. Gains and losses on reclassifying
held-to-maturity investments into available-for-sale
financial assets
4. Effective hedging gains and losses on cash
flows
5. Foreign-currency financial statement
translation difference 251,745.15 1,534,422.53
6. Other
After-tax net amount of other comprehensive incomes
attributable to minority shareholders
VII. Total comprehensive incomes 9,751,358.00 8,216,423.07
Attributable to owners of the Company 8,246,930.59 6,981,807.89
Attributable to minority shareholders 1,504,427.41 1,234,615.18
VIII. Earnings per share
(I) Basic earnings per share 0.04 0.03
(II) Diluted earnings per share 0.04 0.03
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
18
Report for the First Quarter of 2015 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. 2015 Jan.-Mar. 2014
I. Total sales 41,751,218.62 19,668,041.34
Less: cost of sales 34,658,665.63 12,827,510.42
Business taxes and surcharges 259,261.49 323,834.21
Distribution expenses 2,087,654.04 1,616,468.48
Administrative expenses 2,514,621.15 2,781,031.86
Financial costs -19,857.02 -42,307.79
Impairment loss -981,415.14 -1,556,664.17
Add: gain/(loss) from change in fair value (“-” means
loss)
Gain/(loss) from investment (“-” means loss)
Including: income form investment on associates
and joint ventures
II. Business profit (“-” means loss) 3,232,288.47 3,718,168.33
Add: non-operating income 24,799.69 416.19
Including: Gains on disposal of non-current assets
Less: non-operating expense
Including: Losses on disposal of non-current assets
III. Total profit (“-” means loss) 3,257,088.16 3,718,584.52
Less: Income tax expense 238,153.49
IV. Net profit (“-” means loss) 3,018,934.67 3,718,584.52
V. After-tax net amount of other comprehensive incomes
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive incomes
in investees that cannot be reclassified into gains and
losses under the equity method
(II) Other comprehensive incomes that will be
reclassified into gains and losses
1. Enjoyable shares in other comprehensive incomes
in investees that will be reclassified into gains and losses
under the equity method
2. Gains and losses on fair value changes of
available-for-sale financial assets
3. Gains and losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation
difference
6. Other
VI. Total comprehensive incomes 3,018,934.67 3,718,584.52
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
19
Report for the First Quarter of 2015 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. 2015 Jan.-Mar. 2014
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of
456,218,930.18 472,050,234.57
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 financial assets measured at fair
value of which changes are recorded into current gains and losses
Cash received from interest, handling charges and
commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase business
Tax refunds received 42,054,356.30 71,980,717.35
Other cash received relating to operating activities 13,379,113.73 26,368,981.31
Subtotal of cash inflows from operating activities 511,652,400.21 570,399,933.23
Cash paid for goods and services 429,098,615.82 458,851,343.59
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 69,021,103.17 65,483,557.51
Various taxes paid 7,202,670.98 8,264,059.89
Other cash payment relating to operating activities 43,312,677.19 53,388,981.71
Subtotal of cash outflows from operating activities 548,635,067.16 585,987,942.70
Net cash flows from operating activities -36,982,666.95 -15,588,009.47
II. Cash flows from investing activities:
Cash received from withdrawal of investments 1,105,031.80 55,014,569.58
Cash received from return on investments 2,172,140.79
Net cash received from disposal of fixed assets, intangible 1,720,653.22 439,943.13
20
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Jan.-Mar. 2015 Jan.-Mar. 2014
assets and other long-term assets
Net cash received from disposal of subsidiaries or other
business units
Other cash received relating to investing activities 476,499,000.00
Subtotal of cash inflows from investing activities 479,324,685.02 57,626,653.50
Cash paid to acquire fixed assets, intangible assets and other
18,208,205.43 9,761,832.21
long-term assets
Cash paid for investment 330,000,000.00 300,000,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities 481,271,632.63
Subtotal of cash outflows from investing activities 829,479,838.06 309,761,832.21
Net cash flows from investing activities -350,155,153.04 -252,135,178.71
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority shareholder
investments by subsidiaries
Cash received from borrowings 272,756,272.00 338,139,940.00
Cash received from issuance of bonds
Other cash received relating to financing activities 143,957,350.00
Subtotal of cash inflows from financing activities 272,756,272.00 482,097,290.00
Repayment of borrowings 61,422,000.00
Cash paid for interest expenses and distribution of dividends
312,393.00 944,183.18
or 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 61,734,393.00 13,248,383.18
Net cash flows from financing activities 211,021,879.00 468,848,906.82
IV. Effect of foreign exchange rate changes on cash and cash
476,241.25 5,104,545.71
equivalents
V. Net increase in cash and cash equivalents -175,639,699.74 206,230,264.35
Add: Opening balance of cash and cash equivalents 469,965,448.01 834,088,959.68
VI. Closing balance of cash and cash equivalents 294,325,748.27 1,040,319,224.03
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
21
Report for the First Quarter of 2015 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. 2015 Jan.-Mar. 2014
I. Cash flows from operating activities:
Cash received from sale of commodities and 40,970,463.10 56,243,897.26
rendering of service
Tax refunds received
Other cash received relating to operating activities 11,797,781.95 14,183,210.67
Subtotal of cash inflows from operating activities 52,768,245.05 70,427,107.93
Cash paid for goods and services 31,932,105.35 54,480,417.57
Cash paid to and for employees 2,328,732.56 9,944,933.01
Various taxes paid 1,916,581.82 1,184,029.17
Other cash payment relating to operating activities 10,798,107.99 2,291,960.23
Subtotal of cash outflows from operating activities 46,975,527.72 67,901,339.98
Net cash flows from operating activities 5,792,717.33 2,525,767.95
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 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 0.00
Cash paid to acquire fixed assets, intangible assets 119,052.90 735.90
and other long-term 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 119,052.90 735.90
Net cash flows from investing activities -119,052.90 -735.90
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 0.00 0.00
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 0.00 0.00
Net cash flows from financing activities 0.00 0.00
IV. Effect of foreign exchange rate changes on cash 1,563.46 6,996.02
and cash equivalents
V. Net increase in cash and cash equivalents 5,675,227.89 2,532,028.07
Add: Opening balance of cash and cash 3,236,270.65 11,811,615.43
equivalents
VI. Closing balance of cash and cash equivalents 8,911,498.54 14,343,643.50
Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
22
Report for the First Quarter of 2015 of Tsann Kuen (China) Enterprise Co., Ltd.
II. Auditor’s report
Is this report audited?
□ Yes √ No
This report is not audited.
23
