Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
THIRD QUARTER REPORT 2016
October 2016
1
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Section I Important Statements
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. Feng Zhiqing, 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.
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Section II Financial Highlights & Shareholder Changes
I Highlights of accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in
accounting policies or correction of accounting errors
√ Yes □ No
Unit: RMB
30 September 31 December 2015
Item +/- (%)
2016 Before adjustment After adjustment
Total assets 1,672,677,864.16 1,656,036,577.21 1,662,657,829.11 0.60
Owner’s equities attributed to the shareholders of the
589,611,941.25 559,728,743.98 562,024,410.53 4.91
Company
July-September January-September YoY +/-
Item YoY +/- (%)
2016 2016 (%)
Operating revenues 530,619,224.33 -8.38 1,328,727,913.60 -9.88
Net profit attributable to shareholders of the Company 12,124,393.34 2.48 29,914,194.70 14.49
Net profit attributable to shareholders of the Company
11,674,289.80 -33.38 27,619,142.36 30.34
excluding exceptional profit and loss
Net cash flows from operating activities -1,728,404.23 -96.83 -61,900,410.52 -41.46
Basic earnings per share 0.06 0.00 0.16 14.29
Diluted earnings per share 0.06 0.00 0.16 14.29
Weighted average return on equity (%) 2.05 -0.46 5.16 0.07
Notes to the retroactive adjustment of 2016 opening amount and that of the same period of last year:
On 24 April 2015, the Company held the 2015 2nd Board of Directors had approved the resolutions, of which the controlling
subsidiary Zhangzhou Tsann Kuen Industrial Co., Ltd. (named “Zhangzhou Tsann Kuen” for short with the shareholding of 75%) and
firstly set up the wholly owned subsidiary Orient Star Investments Limited (named “Orient Star Investments”) then secondly Orient
Star Investments invested and purchased the 100% equities of the wholly owned subsidiary Tsannkuen Edge Intelligence Co., Ltd.
(named “Tsannkuen Edge Intelligence” for short) of STAR COMGISTIC CAPITAL CO., LTD. (named “STAR COMGISTIC
CAPITAL” for short). Orient Star Investments received the relevant letter about approving the purchase of the 100% equities of
Tsannkuen Edge Intelligence from Taiwan competent authorities on 15 March 2016 and amount that STAR COMGISTIC CAPITAL
received the purchase of the whole equities of Tsannkuen Edge Intelligence by Orient Star Investments on 21 March 2016 was of
USD968,545.48. And had completed the relevant alternation procedures of the commercial registration of the equity transfer on 19
April 2016 and with the details, please refer to the Announcement on the Controlling Subsidiary of the Company Zhangzhou Tsann
Kuen Invested on Its Wholly-owned Subsidiary which Purchased the Equity of Tsannkuen Edge Intelligence and the Related
Transactions that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 25 April 2015, the Correcting
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Announcement on the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen Invested on Its Wholly-owned Subsidiary
which Purchased the Equity of Tsannkuen Edge Intelligence and the Related Transactions that disclosed on Securities Times, Hong
Kong Ta Kung Pao and www.cninfo.com.cn on 28 April 2015, Announcement on the Completion of the Commercial Registration
Procedures of the Hong Kong Wholly-owned Subsidiary of Zhangzhou Tsann Kuen that disclosed on Securities Times, Hong Kong
Ta Kung Pao and www.cninfo.com.cn on 21 May 2015, Announcement on the Controlling Subsidiary of the Company Zhangzhou
Tsann Kuen Purchased Tsannkuen Edge Intelligence and the Progress of the Related Transactions that disclosed on Securities Times,
Hong Kong Ta Kung Pao and www.cninfo.com.cn on 16 March 2016 and the Announcement on the Completion of the Commercial
Alternation Registration of the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen through the Purchase of Tsannkuen
Edge Intelligence by Hong Kong Subsidiary that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on
21 April 2016.
According to No. 20 of ASBE - Enterprise Merger, the Transaction formed the enterprise merger under the same control and the main
body was regarded as always exist in the previous periods after the merger. The combining party shall adjust the opening amounts
and the amounts for the same period of last year of relevant items in the statements.
Total share capital up to the trading day before the disclosure:
Total share capital up to the trading day before the disclosure (share) 185,391,680
Fully diluted EPS calculated according to the latest share capital (RMB/share) 0.16
Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2016 Note
Profit/loss on disposal of non-current assets (including offset amount of
125,273.22
asset impairment provisions)
Tax rebates, reductions and exemptions due to approval beyond authority
or the lack of official approval documents
Government grants charged to the profit/loss for the Reporting Period
(except for the government grants closely related to the business of the
2,758,460.00
Company and given at a fixed quota or amount in accordance with the
State’s uniform standards)
Capital occupation charges on non-financial enterprises that are charged
to the profit/loss for the Reporting Period
Profit due to the situation where investment costs for the Company to
obtain subsidiaries, associates and joint ventures are lower than the
enjoyable fair value of identifiable net assets of investees when making
investments
Profit/loss on non-monetary asset swap
Profit/loss on entrusting others with investments or asset management
Asset impairment provisions due to acts of God such as natural disasters
Profit/loss on debt restructuring
Restructuring costs in staff arrangement, integration, etc.
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Item January-September 2016 Note
Profit/loss on the part over the fair value due to transactions with
distinctly unfair prices
Reporting Period net profit/loss of subsidiaries acquired through Loss of Tsannkuen Edge
business mergers under the same control from period-beginnings to -2,224,231.59 Intelligence before
merger dates combination
Profit/loss on contingencies irrelevant to the Company’s normal business
activities
Profit/loss on fair value changes of transactional financial assets and Gains on sale of forward
liabilities & investment profit on disposal of transactional financial exchange contracts, fair
assets and liabilities as well as financial assets available for sale, except 1,224,489.40 value changes, financial
for effectively hedging business related to normal business operations of products and other
the Company current assets
Impairment provision reversal for accounts receivable on which the
impairment test is carried out separately
Profit/loss on entrusted loans
Profit/loss on fair value changes in investing properties of which the
subsequent measurement is carried out adopting the fair value method
Effect on Reporting Period profit/loss when a one-off adjustment is
made to Reporting Period profit/Loss according to requirements of
taxation, accounting and other relevant laws and regulations
Custody fee income when entrusted with operations
Non-operating income and expense other than the above 2,188,569.92
Other profit/loss that meet the definition of exceptional profit/loss
Less: Income tax effects 1,063,069.49
Minority interests effects (after tax) 714,439.12
Total 2,295,052.34
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
II Total number of shareholders and shareholdings of top 10 shareholders at the period-end
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right
& shareholdings of top 10 shareholders at the period-end
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Unit: share
Total number of preference shareholders
Total number of ordinary shareholders at the end
17,617 who had resumed their voting right at the 0
of the Reporting Period
end of the Reporting Period
Shareholdings of top 10 shareholders
Number of Pledged or frozen shares
Nature of Shareholding Number of
Name of shareholder restricted
shareholder percentage shares held Status Number
shares held
FORDCHEE DEVELOPMENT Foreign
29.10% 53,940,530 0 N/A 0
LIMITED corporation
EUPA INDUSTRY Foreign
13.09% 24,268,840 0 N/A 0
CORPORATION LIMITED corporation
GUOTAI JUNAN
Foreign
SECURITIES(HONGKONG) 6.05% 11,210,194 0 N/A 0
corporation
LIMITED
FILLMAN INVESTMENTS Foreign
2.49% 4,621,596 0 N/A 0
LIMITED corporation
Foreign natural
WU CHI LI 1.14% 2,110,500 0 N/A 0
person
Domestic
CHEN YONGQUAN 1.02% 1,888,819 0 N/A 0
natural person
Foreign natural
CHEN YONGQING 0.77% 1,436,149 0 N/A 0
person
Foreign natural
CHEN LIJUAN 0.69% 1,287,817 0 N/A 0
person
SHENWAN HONGYUAN Foreign
0.63% 1,170,051 0 N/A 0
SECURITIES (HK) CO., LTD. corporation
Domestic
DING XIAOLUN 0.54% 1,000,000 0 N/A 0
natural person
Shareholdings of top 10 non-restricted shareholders
Number of non-restricted Type of shares
Name of shareholder shares held at the
Type Number
period-end
FORDCHEE DEVELOPMENT LIMITED 53,940,530 Domestically listed foreign share 53,940,530
EUPA INDUSTRY CORPORATION LIMITED 24,268,840 Domestically listed foreign share 24,268,840
GUOTAI JUNAN SECURITIES(HONGKONG)
11,210,194 Domestically listed foreign share 11,210,194
LIMITED
FILLMAN INVESTMENTS LIMITED 4,621,596 Domestically listed foreign share 4,621,596
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
WU CHI LI 2,110,500 Domestically listed foreign share 2,110,500
CHEN YONGQUAN 1,888,819 Domestically listed foreign share 1,888,819
CHEN YONGQING 1,436,149 Domestically listed foreign share 1,436,149
CHEN LIJUAN 1,287,817 Domestically listed foreign share 1,287,817
SHENWAN HONGYUAN SECURITIES (HK)
1,170,051 Domestically listed foreign share 1,170,051
CO., LTD.
DING XIAOLUN 1,000,000 Domestically listed foreign share 1,000,000
The first, the second and the fourth largest shareholders are the Company’s
corporate controlling shareholders. It is unknown to the Company whether there
Related or act-in-concert parties among the
exists associated relationship among the shareholders above or they are
shareholders above
acting-in-concert entities as stipulated in the Administrative Measures on
Information Disclosure of Changes in Shareholding of Listed Companies.
Top 10 ordinary shareholders conducting
N/A
securities margin trading (if any)
Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conduct any
promissory repo during the Reporting Period?
□ Yea √ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top 10 of them at the period-end
□ Applicable √ Not applicable
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Section III Significant Events
I Changes in main accounting statement items and financial indicators in the Reporting
Period, as well as reasons for the changes
√ Applicable □ Not applicable
Unit: RMB
30 September
Item 31 December 2015 +/- (%) Main reason for change
2016
Monetary funds 526,886,316.72 756,223,544.72 -30.33 Purchase of more wealth management products
Accounts receivable 352,359,192.16 219,609,267.40 60.45 Increase in shipment
Interest receivable 1,744,323.00 1,135,305.55 53.64 Increase in term deposits
Other accounts receivable 32,213,545.17 50,308,515.39 -35.97 Export tax rebates received
RMB200 million was invested in wealth
Other current assets 292,407,364.10 89,858,232.99 225.41
management products.
Construction that has not yet been checked and
Construction in progress 913,971.74 210,796.20 333.58
accepted
Molds and equipment that had been prepaid for
Other non-current assets 1,310,775.41 6,264,771.15 -79.08
were checked and accepted.
Short-term borrowings 112,854,820.00 0.00 100.00 Short-term borrowings from banks increased.
Financial liabilities at fair The assessed loss on undelivered forwards
1,000.00 8,462,500.00 -99.99
value through profit/loss occurred.
Accounts received in Products were sold to customers who had paid
8,618,079.41 15,828,556.71 -45.55
advance advances
Taxes and fares payable 8,520,634.41 6,158,817.21 38.35 Increase in corporate income tax provided for
Interest payable 422,850.67 0.00 100.00 Interest on short-term borrowings provided for
Other comprehensive Bigger difference on foreign-currency statement
5,551,286.95 3,231,050.04 71.81
income translation
Same period of last
Item Current period +/- (%) Main reason for change
year
Finance costs -12,805,713.25 -24,918,982.50 -48.61 Decrease in assessed foreign currency profit
Bad-debt loss and inventory falling price loss
Asset impairment loss 13,958,770.43 4,410,887.38 216.46
provided for as per the accounting policies
Reversal of assessed loss on undelivered
Profit on fair value changes 8,461,500.00 -3,029,390.15 379.31
forwards
Return on investment -7,228,536.60 6,042,202.49 -219.63 Assessed loss on delivered forwards
Increase in asset disposal loss due to plant
Non-operating expense 696,278.23 134,843.80 416.36
renewal
Increase in corporate income tax provided for
Corporate income tax 8,493,215.93 5,736,527.36 48.06
of subsidiary Zhangzhou Tsann Kuen
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Same period of last
Item Current period +/- (%) Main reason for change
year
Net cash flows from More export tax rebates than the same period of
-61,900,410.52 -105,736,860.04 -41.46
operating activities last year
Net cash flows from Net increase in term deposits of restricted
-394,513,599.97 -237,614,305.31 -66.03
investing activities money
II Progress on significant events, as well as the influence and solutions
√ Applicable □ Not applicable
Contingency
(1) The subsidiary of the Company -TsannKuen (Zhangzhou) Enterprise Co., Ltd. (hereafter, TKL) signed the < Product Supply
Agreement> with XindaElectromechanics Co., Ltd. (hereafter, Xinda) on July 20, 2009. The validity of the contract is from July 1,
2009 to June 30, 2012. Furthermore, on 1 January 2011, they signed the and relevant , and other agreements. According to those agreements, TKL
should purchase products from Xinda. TKL rejected to pay for the purchase and terminated those agreements due to the poor
quality products from Xinda. On 2 November 2011, Xinda lodged petition for civil litigation to the Intermediate People’s Court of
Zhangzhou for the order of Intermediate People’s Court of Zhangzhou that TKL pay for purchase from Xindaamounting to USD
479,089.06 (CNY 3,071,535.78) immediately together with the liquidated damages for delay payment and resume performance of the
agreement (the value of the unperformed agreement amounting to USD 189,423.25).
On 8 January 2012, TKL lodged counterclaim to the Court claiming that due to unsatisfactory quality of goods supplied by Xinda,
goods supplied by TKL had been returned from clients and orders cancelled, resulting in substantial financial loss and reputation
damage suffered by the TKL. TKL therefore petitioned for the cour order for relief of agreement and that Xinda shall pay to TKL
liquidated damage amounting to CNY 1 million together with financial loss amounting to CNY 7.6216 million.
Intermediate People’s Court of Zhangzhou made the judgement on 15 August 2013 as follow: I. TKL should pay goods payments
amount USD479, 089.06 to plaintiff Xinda within 15 days from the date on which the judgement becomes effective, equivalent to
CNY3, 071,535.78. II. Plaintiff Xinda and the third party BoLuoLianyuan industry Co., Ltd. (hereafter Lianyua) should jointly pay
the liquidated damage for CNY1,233,399.70 to TKL within 15 days from the date on which the judgement becomes effective. III.
Unperformed 10 orders entered into by TKL, Xinda and Lianyuan are declared cancelled. IV. Reject other claims partitioned by the
plaintiff Xinda. V. Reject other claims partitioned by TKL. After the first judgment, both parties appealed against the judgment.
Up to the end of the reporting date, the financial statement of TKL included accounts payable to Xinda amounting to USD
479,089.06. As the second hearing was yet to be finalized, TKL unrecognized contingent assets CNY1,233,399.70 to Xinda.
(2) The subsidiary of the Company - TsannKuen China (Shanghai) Enterprise Co., Ltd. (hereafter, TKS) signed the Plant Leasing
contract with Shanghai Liangxin Industrial Co., Ltd. (hereafter, SHLX) at November 2007, and leased the plant (including plant
affiliated land, ground buildings and related ancillary equipment, etc) located in No. 4407 Caoan Road Jiading District, Shanghai to
SHLX. The real estate certificate of leasehold is Hu Fangdi Jia Zi (2006) No. 011945, the lease period is from November 2007 to
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
November 2019, the purpose to the lessee for the use of legitimate factory and storage. The provisions of contract point out if the
lessee need to build plant because of production should to obtain government and relevant authorities’ agreements. Except to
confiscate the deposit, the lessor can terminate the contract and does not have to undertake any responsibility if the lessee sublease
the leasehold, make improvement or addition to the leasehold without to obtain the written consent from lessor.
TKS submitted the civil action to Shanghai Jiading District People's Court by cause of action “the lessee SHLX decorated and
subleased the leasehold to Shanghai Hujia Fruit Sales Limited Company (hereafter, SHHJ) without to obtain the written consent from
lessor” on 28 October 2015, and required early termination of the Plant Leasing contract with SHLX, and required SHHJ to terminate
construction and to repristinate the leasehold. In July 2016, TKS appealed to Shanghai Jiading District People's Court by cause of
requiring SHXL repristinate the leasehold.
Up to the end of the reporting date, the civil action is still in process.
Index of the interim report disclosure
Summary of the significant events Disclosure date
website
The progress events of the appeal between the
Company’s controlling subsidiary—Zhangzhou Tsann 22 Feb. 2014 www.cninfo.com.cn
Kuen and Xinda Motor
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
III Commitments of the Company, its shareholders, actual controller, acquirer, directors, supervisors, senior management or other
related parties fulfilled in the Reporting Period or ongoing at the period-end
√ Applicable □ Not applicable
Commit Date of Term of
Type of
Commitment ment Contents commitment commitmen Fulfillment
commitment
maker making t
Commitments made in share reform
Commitments made in acquisition documents or
shareholding alteration documents
Commitments made in time of asset restructuring
Commitments made in time of IPO or refinancing
Commitments concerning stock ownership incentive
Based on the confidence on the continuous and stable
The Company’s stocks
development of the Company, it committed to increase the
resumed trading on 31 Dec.
shareholding if the Company’s stock price lower than HKD2.40
2012, but the Company’s
FILLM per share after the implementation of the shares contraction and
stock price hasn’t met the
AN Commitments trading resumption, and it would increase no more than 2% shares
condition for shareholding
INVEST on the (i.e.3,707,800 shares ) of the total shares issued by the Company Long-term
Other commitments made to minority shareholders 28 Dec. 2012 increase since the date of
MENTS shareholding within one year since the date of initial shareholding increase. If effective
trading resumption,
LIMITE increase the plan on increasing holding 2% shares of the total shares is
FILLMAN Investment
D completed, if the stock price hasn’t reached the target price, it
Limited hasn’t implemented
will perform relevant approval procedures, and propose to CSRC
the shareholding increase
on continuous implementation of shareholding increase by
plan.
exemption of offering.
Executed on time Yes
IV Performance forecast for Y2016
Warning of possible loss or considerable YoY change in the accumulative net profit made during the year-beginning to the end of the next reporting period, as well as the reasons
□ Applicable √ Not applicable
V Securities investment
□ Applicable √ Not applicable
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
VI Investment in derivative financial instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Amount of Proportion of
the the closing
Actual
Related-party Type of Opening Closing investment
Initial investment Purchased Sold amount provision gain/loss in
Operator Relation transaction derivative Beginning date Ending date investment for investment amount in the
amount amount reporting
or not investment amount impairment amount Company’s
period
losses closing net
assets (%)
Forward 30 September
Bank No No 29,825.70 1 January 2016 27,816.19 2,003.43 28,488.78 1,336.92 2.27 122.45
exchange 2016
Total 29,825.70 27,816.19 2,003.43 28,488.78 1,336.92 2.27 122.45
Capital source for derivative investment Self-owned funds
Lawsuit situations (if applicable) N/A
Disclosure date of the board announcement approving 2013/3/12
the 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 net 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, the business operation and risk management mechanisms for derivative investment.
operation 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 Board of Directors annually.
The Company and its subsidiaries only need to submit to the Board of Directors of the subsidiaries.
(5) Loss limit: The investment loss on a single derivative and all the investment loss shall not exceed 20% of the total investment amount.
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
(6) Audit system: The audit department audits derivative product trading periodically and submits audit reports to relevant units.
(1) Profit/loss on delivered derivative financial instruments was RMB-7.2370 million in the Reporting Period, and evaluated loss on undelivered
Changes of market prices or fair values in the reporting derivatives was RMB8.4615 million in the Reporting Period, including the reversed evaluated loss of RMB8.4625 million on undelivered
period of the invested derivatives. And the analysis on forward exchange instruments of last year.
the fair value of the derivatives should include the (2) The former contracted bank provided monthly sheets of estimated exchange rates for the undue contracted forward exchanges on the last
specific use methods and the relevant assumptions and trading day of the month.
parameters (3) The profit and loss from fair value changes of the derivative was confirmed according to the difference between the contracted amount undue
by the month*the estimated exchange rate and the currency amount when bought in.
Whether significant changes occurred to the Company’s
accounting policy and specific accounting principles of There were no significant changes between the Company’s accounting policy and specific accounting principles of derivatives in the reporting
derivatives in the reporting period compared to the period and those in the last reporting period.
previous reporting period
The Company has carried out a strict internal assessment for the financial derivative business and has established a corresponding supervision
Specific opinion from independent directors on the mechanism. We are of the opinion that the financial derivative business conducted by the Company is fairly necessary in its routine operation
Company’s derivatives investment and risk control and is in compliance with relevant laws and regulations, with the risks controllable.
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
VII Visits paid to the Company for purposes of research, communication, interview, etc.
during the Reporting Period
√ Applicable □ Inapplicable
Date of visit Way of visit Type of visitor About
Inquiry the reform of B share, and the Company’s equity
2016-02-01 By phone Individual
transfer of TsannKuen China (Shanghai) Enterprise Co., Ltd.
Inquiry the Company’s equity transfer of TsannKuen China
2016-02-02 By phone Individual
(Shanghai) Enterprise Co., Ltd.
Inquiry the financial problem of the Report for the First Quarter
2016-05-09 By phone Individual of 2016, and the equity transfer of TsannKuen China (Shanghai)
Enterprise Co., Ltd., material was not offered.
Inquiry the equity transfer of TsannKuen China (Shanghai)
2016-05-13 By phone Individual
Enterprise Co., Ltd., material was not offered.
Inquiry the operation situation of the Company, material was
2016-05-17 By phone Individual
not offered.
1.Investor: Known about the main business of the Company
Reply by the Company: so far, the main business of the
Company was the manufacture of small household appliance
product, and the categories respectively were: baked device iron
motor coffee pot
2. Investor: Known about the client relations
Reply by the Company: so far, the product of the Company
mainly was export sales, 90% of the total, the main clients were
from Europe, America and Asia.
3.Investor: Known about the influence of RMB devaluation to
the Company
Reply by the Company: it is benefit for the export enterprise,
2016-09-22 Field research Individual however, foreign will bargain due to RMB devaluation.
4. Investor: Known about the structure of small household
appliance industry.
Reply by the Company: the fierce competition structure of small
household appliance industry had formed, only consistently
innovate and form scale, enterprise can continue exist.
5. Investor: Known about the future development plan of the
Company
Reply by the Company: the Company keep stable and healthy
operation model, enlarge R&D and the promotion of new
products.
6. Guide researcher visit the production line
7. Material was not offered.
Inquiry the production and operation situation of the Company,
2016-09-25 By phone Individual and the rental situation of the factory of the Company in
Xiamen.
VIII Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
IX Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
□ Applicable √ Not applicable
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Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Tsann Kuen (China) Enterprise Co., Ltd.
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 526,886,316.72 756,223,544.72
Settlement reserves
Intra-group lendings
Financial assets measured at fair value of which changes are recorded
in current profits and losses
Derivative financial assets
Notes receivable 1,179,064.09 1,483,710.00
Accounts receivable 352,359,192.16 219,609,267.40
Accounts paid in advance 12,226,627.46 16,919,366.87
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable 1,744,323.00 1,135,305.55
Dividend receivable
Other accounts receivable 32,213,545.17 50,308,515.39
Financial assets purchased under agreements to resell
Inventories 195,299,866.47 264,377,787.95
Assets held for sale
Non-current assets due within 1 year
Other current assets 292,407,364.10 89,858,232.99
Total current assets 1,414,316,299.17 1,399,915,730.87
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 43,042,608.63 46,185,216.68
Fixed assets 177,318,162.84 177,049,198.02
Construction in progress 913,971.74 210,796.20
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
15
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Item Closing balance Opening balance
Intangible assets 18,004,255.56 14,136,233.55
R&D expense
Goodwill
Long-term deferred expenses 3,464,232.48 3,874,638.99
Deferred income tax assets 14,267,558.33 14,981,243.65
Other non-current assets 1,310,775.41 6,264,771.15
Total of non-current assets 258,361,564.99 262,742,098.24
Total assets 1,672,677,864.16 1,662,657,829.11
Current liabilities:
Short-term borrowings 112,854,820.00
Borrowings from the Central Bank
Customer bank deposits and due to banks and other financial
institutions
Intra-group borrowings
Financial liabilities measured at fair value of which changes are
1,000.00 8,462,500.00
recorded in current profits and losses
Derivative financial liabilities
Notes payable 22,353,751.51 26,974,641.74
Accounts payable 491,148,634.33 575,930,730.06
Accounts received in advance 8,618,079.41 15,828,556.71
Financial assets sold and repurchased
Handling charges and commissions payable
Payroll payable 44,696,054.11 43,460,873.84
Tax payable 8,520,634.41 6,158,817.21
Interest payable 422,850.67
Dividend payable
Other accounts payable 59,558,033.06 65,108,735.70
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 748,173,857.50 741,924,855.26
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preference shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income
Deferred income tax liabilities 249,658.70 242,702.95
16
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Item Closing balance Opening balance
Other non-current liabilities
Total non-current liabilities 249,658.70 242,702.95
Total liabilities 748,423,516.20 742,167,558.21
Owners’ equity:
Share capital 185,391,680.00 185,391,680.00
Other equity instruments
Of which: preference shares
Perpetual bonds
Capital reserves 296,808,965.78 282,916,698.67
Less: Treasury stock
Other comprehensive income 5,551,286.95 3,231,050.04
Specific reserves
Surplus reserves 20,962,521.51 20,962,521.51
Provisions for general risks
Retained profits 80,897,487.01 69,522,460.31
Total equity attributable to owners of the Company 589,611,941.25 562,024,410.53
Minority interests 334,642,406.71 358,465,860.37
Total owners’ equity 924,254,347.96 920,490,270.90
Total liabilities and owners’ equity 1,672,677,864.16 1,662,657,829.11
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
17
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Monetary funds 6,220,181.61 7,750,025.58
Financial assets measured at fair value and of which changes are
recorded into current gains and losses
Derivative financial assets
Notes receivable 628,006.96 589,835.00
Accounts receivable 30,469,313.96 23,997,156.18
Accounts paid in advance 184,085.02 1,202,214.48
Interest receivable
Dividend receivable
Other accounts receivable 1,671,574.82 3,010,844.58
Inventories 13,856,225.80 11,151,650.93
Assets held for sale
Non-current assets due within 1 year
Other current assets 156,146.92 55,278.38
Total current assets 53,185,535.09 47,757,005.13
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 922,914,701.56 985,814,030.83
Investing real estate 36,501,059.09 38,994,677.59
Fixed assets 2,041,650.10 2,328,116.94
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 89,999.99 110,249.99
R&D expense
Goodwill
Long-term deferred expenses 153,866.24 405,866.33
Deferred income tax assets 1,821,382.64 18,053,868.00
Other non-current assets
Total of non-current assets 963,562,659.62 1,045,746,809.68
Total assets 1,016,748,194.71 1,093,503,814.81
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 82,363,371.14 66,922,540.32
Accounts received in advance 463,827.62 2,664,965.52
Payroll payable 2,521,315.44 3,390,321.73
18
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Item Closing balance Opening balance
Tax payable -21,118.68 966,665.47
Interest payable
Dividend payable
Other accounts payable 301,868,241.52 461,663,363.89
Liabilities held for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 387,195,637.04 535,607,856.93
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preference 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
Total liabilities 387,195,637.04 535,607,856.93
Owners’ equity:
Share capital 185,391,680.00 185,391,680.00
Other equity instruments
Of which: preference shares
Perpetual bonds
Capital reserves 271,490,289.82 271,490,289.82
Less: Treasury stock
Other comprehensive income
Specific reserves
Surplus reserves 20,962,521.51 20,962,521.51
Retained profits 151,708,066.34 80,051,466.55
Total owners’ equity 629,552,557.67 557,895,957.88
Total liabilities and owners’ equity 1,016,748,194.71 1,093,503,814.81
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
19
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
3. Consolidated income statement for the Reporting Period
Unit: RMB
Item Jul.-Sept. 2016 Jul.-Sept. 2015
I. Operating revenues 530,619,224.33 579,140,206.32
Including: Sales income 530,619,224.33 579,140,206.32
Interest income
Premium income
Handling charge and commission income
II. Operating costs 510,540,658.88 550,398,995.16
Including: Cost of sales 436,505,858.96 496,371,056.95
Interest expenses
Handling charge and commission expenses
Surrenders
Net claims paid
Net amount withdrawn for the insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 2,117,191.24 1,188,384.99
Selling and distribution expenses 21,592,482.33 22,086,718.55
Administrative expenses 38,444,945.51 43,158,926.15
Financial expenses -2,839,400.73 -15,713,245.07
Asset impairment loss 14,719,581.57 3,307,153.59
Add: Gain/(loss) from change in fair value (“-” means loss) 2,816,450.00 -11,830,300.00
Gain/(loss) from investment (“-” means loss) -2,794,098.65 11,533.67
Including: share of profits in associates and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 20,100,916.80 16,922,444.83
Add: non-operating income 1,411,057.97 1,625,298.40
Including: Gains on disposal of non-current assets 234,014.13 611,012.33
Less: non-operating expense 634,553.26 16,648.18
Including: Losses on disposal of non-current assets 633,914.10 12,219.06
IV. Total profit (“-” means loss) 20,877,421.51 18,531,095.05
Less: Income tax expense 5,735,890.00 2,435,769.58
V. Net profit (“-” means loss) 15,141,531.51 16,095,325.47
Of which: net profit achieved by the merged parties before the
-1,506,531.88
business mergers
Net profit attributable to owners of the Company 12,124,393.34 11,830,451.09
Minority shareholders’ income 3,017,138.17 4,264,874.38
VI. After-tax net amount of other comprehensive incomes 1,037,492.82 3,731,285.52
After-tax net amount of other comprehensive incomes attributable to
778,119.62 2,798,464.14
owners of the Company
(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
778,119.62 2,798,464.14
gains and losses
20
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Item Jul.-Sept. 2016 Jul.-Sept. 2015
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 778,119.62 2,798,464.14
6. Other
After-tax net amount of other comprehensive incomes attributable to
259,373.20 932,821.38
minority shareholders
VII. Total comprehensive incomes 16,179,024.33 19,826,610.99
Attributable to owners of the Company 12,902,512.96 14,628,915.23
Attributable to minority shareholders 3,276,511.37 5,197,695.76
VIII. Earnings per share
(I) Basic earnings per share 0.06 0.06
(II) Diluted earnings per share 0.06 0.06
Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged parties
before the business mergers was RMB0.00, with the corresponding amount for the last period being RMB-1,506,531.88.
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
21
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
4. Income statement of the Company for the Reporting Period
Unit: RMB
Item Jul.-Sept. 2016 Jul.-Sept. 2015
I. Operating revenues 29,536,460.04 13,495,092.82
Less: cost of sales 23,381,737.26 9,569,195.18
Business taxes and surcharges 237,633.66
Sales expense 3,573,257.71 1,260,115.65
Administrative expenses 3,274,027.19 3,823,193.17
Financial expenses -27,930.83 -34,646.87
Asset impairment loss 1,107,423.60 310,192.06
Add: Gain/(loss) from change in fair value (“-” means loss)
Gain/(loss) from investment (“-” means loss)
Including: share of profits in associates and joint ventures
II.Business profit -1,772,054.89 -1,670,590.03
Add: non-operating income 20,599.04 36,918.98
Including: Gains on disposal of non-current assets 23,533.98
Less: non-operating expense 12,952.66
Including: Losses on disposal of non-current assets 12,952.66
III. Total profit (“-” means loss) -1,751,455.85 -1,646,623.71
Less: Income tax expense 67,228.41 -410,371.60
IV. Net profit (“-” means loss) -1,818,684.26 -1,236,252.11
V. After-tax net amount of other comprehensive incomes
After-tax net amount of other comprehensive incomes attributable to
owners of the Company
(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
VI. Total comprehensive incomes -1,818,684.26 -1,236,252.11
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
22
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
5. Consolidated income statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item Jan.-Sept. 2016 Jan.-Sept. 2015
I. Operating revenues 1,328,727,913.60 1,474,334,364.39
Including: Sales income 1,328,727,913.60 1,474,334,364.39
Interest income
Premium income
Handling charge and commission income
II. Operating costs 1,287,099,381.09 1,442,079,902.65
Including: Cost of sales 1,099,323,024.06 1,267,854,353.96
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 5,093,070.40 4,272,747.17
Selling and distribution expenses 62,334,643.87 63,210,847.87
Administrative expenses 119,195,585.58 127,250,048.77
Financial expenses -12,805,713.25 -24,918,982.50
Asset impairment loss 13,958,770.43 4,410,887.38
Add: Gain/(loss) from change in fair value (“-” means loss) 8,461,500.00 -3,029,390.15
Gain/(loss) from investment (“-” means loss) -7,228,536.60 6,042,202.49
Including: share of profits in associates and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 42,861,495.91 35,267,274.08
Add: non-operating income 5,760,107.37 4,854,787.57
Including: Gains on disposal of non-current assets 776,541.14 1,520,804.68
Less: non-operating expense 696,278.23 134,843.80
Including: Losses on disposal of non-current assets 651,267.92 129,414.68
IV. Total profit (“-” means loss) 47,925,325.05 39,987,217.85
Less: Income tax expense 8,493,215.93 5,736,527.36
V. Net profit (“-” means loss) 39,432,109.12 34,250,690.49
Of which: net profits realized by combined party before
-2,224,231.59 -2,591,172.52
combination
Net profit attributable to owners of the Company 29,914,194.70 26,127,995.79
Minority shareholders’ income 9,517,914.42 8,122,694.70
VI. After-tax net amount of other comprehensive incomes 3,093,649.21 3,553,546.43
After-tax net amount of other comprehensive incomes attributable to
2,320,236.91 2,665,159.82
owners of the Company
(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
23
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Item Jan.-Sept. 2016 Jan.-Sept. 2015
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
2,320,236.91 2,665,159.82
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 2,320,236.91 2,665,159.82
6. Other
After-tax net amount of other comprehensive incomes attributable to
773,412.30 888,386.61
minority shareholders
VII. Total comprehensive incomes 42,525,758.33 37,804,236.92
Attributable to owners of the Company 32,234,431.61 28,793,155.61
Attributable to minority shareholders 10,291,326.72 9,011,081.31
VIII. Earnings per share
(I) Basic earnings per share 0.16 0.14
(II) Diluted earnings per share 0.16 0.14
Where business mergers under the same control occurred in the current period, the net profit achieved by the merged parties before
the business mergers was RMB-2,224,231.59, with the corresponding amount for the same period of last year being
RMB-2,591,172.52.
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
24
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
6. Income statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item Jan.-Sept. 2016 Jan.-Sept. 2015
I. Operating revenues 93,820,642.20 92,169,899.28
Less: cost of sales 74,793,216.91 73,644,929.63
Business taxes and surcharges 376,508.47 765,552.24
Sales expense 8,285,937.55 5,460,113.47
Administrative expenses 9,681,328.73 11,147,771.28
Financial expenses -18,902.91 451,509.01
Asset impairment loss 2,011,424.52 37,341.13
Add: Gain/(loss) from change in fair value (“-” means loss)
Gain/(loss) from investment (“-” means loss) 107,582,142.80 28,286,287.22
Including: share of profits in associates and joint ventures
II.Business profit 106,273,271.73 28,948,969.74
Add: non-operating income 193,831.54 96,763.54
Including: Gains on disposal of non-current assets 23,533.98
Less: non-operating expense 12,952.66
Including: Losses on disposal of non-current assets 12,952.66
III. Total profit (“-” means loss) 106,467,103.27 29,032,780.62
Less: Income tax expense 16,271,335.48 460,105.53
IV. Net profit (“-” means loss) 90,195,767.79 28,572,675.09
V. After-tax net amount of other comprehensive incomes
After-tax net amount of other comprehensive incomes attributable to
owners of the Company
(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
VI. Total comprehensive incomes 90,195,767.79 28,572,675.09
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
25
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
7. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item Jan.-Sept. 2016 Jan.-Sept. 2015
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 1,169,919,248.52 1,314,183,043.24
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 142,146,912.55 102,344,195.61
Other cash received relating to operating activities 50,653,102.85 46,931,326.34
Subtotal of cash inflows from operating activities 1,362,719,263.92 1,463,458,565.19
Cash paid for goods and services 1,061,333,471.03 1,181,254,376.36
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 187,990,699.88 201,712,346.71
Various taxes paid 18,642,612.06 18,030,903.40
Other cash payment relating to operating activities 156,652,891.47 168,197,798.76
Subtotal of cash outflows from operating activities 1,424,619,674.44 1,569,195,425.23
Net cash flows from operating activities -61,900,410.52 -105,736,860.04
II. Cash flows from investing activities:
Cash received from withdrawal of investments -7,237,010.60 110,701,869.16
Cash received from return on investments 8,474.00 1,343,333.33
26
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Item Jan.-Sept. 2016 Jan.-Sept. 2015
Net cash received from disposal of fixed assets, intangible assets and other
6,333,188.47 3,340,201.65
long-term assets
Net cash received from disposal of subsidiaries or other business units
Other cash received relating to investing activities 105,156,640.61 836,698,575.78
Subtotal of cash inflows from investing activities 104,261,292.48 952,083,979.92
Cash paid to acquire fixed assets, intangible assets and other long-term
47,599,553.23 55,254,470.82
assets
Cash paid for investment 206,278,499.22 330,000,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities 244,896,840.00 804,443,814.41
Subtotal of cash outflows from investing activities 498,774,892.45 1,189,698,285.23
Net cash flows from investing activities -394,513,599.97 -237,614,305.31
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority shareholder investments by
subsidiaries
Cash received from borrowings 111,188,590.00 583,727,183.61
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 111,188,590.00 583,727,183.61
Repayment of borrowings 434,082,752.61
Cash paid for interest expenses and distribution of dividends or profit 32,363,500.69 37,956,939.13
Including: dividends or profit paid by subsidiaries to minority
13,824,332.69 8,485,886.15
shareholders
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 32,363,500.69 472,039,691.74
Net cash flows from financing activities 78,825,089.31 111,687,491.87
IV. Effect of foreign exchange rate changes on cash and cash equivalents 8,511,493.78 17,613,773.10
V. Net increase in cash and cash equivalents -369,077,427.40 -214,049,900.38
Add: Opening balance of cash and cash equivalents 675,803,904.11 469,965,448.01
VI. Closing balance of cash and cash equivalents 306,726,476.71 255,915,547.63
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
27
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
8. Cash flow statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item Jan.-Sept. 2016 Jan.-Sept. 2015
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 87,550,946.03 108,538,211.67
Tax refunds received
Other cash received relating to operating activities 31,327,817.44 33,426,268.98
Subtotal of cash inflows from operating activities 118,878,763.47 141,964,480.65
Cash paid for goods and services 75,355,128.31 95,873,694.77
Cash paid to and for employees 9,492,255.28 9,089,806.07
Various taxes paid 4,660,056.78 5,331,450.02
Other cash payment relating to operating activities 182,830,976.43 25,969,329.55
Subtotal of cash outflows from operating activities 272,338,416.80 136,264,280.41
Net cash flows from operating activities -153,459,653.33 5,700,200.24
II. Cash flows from investing activities:
Cash received from withdrawal of investments 130,000,000.00
Cash received from return on investments 41,481,472.07 28,286,287.22
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 171,481,472.07 28,286,287.22
Cash paid to acquire fixed assets, intangible assets and other
13,798.00 2,565,567.30
long-term assets
Cash paid for investment 1,000,000.00
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 1,013,798.00 2,565,567.30
Net cash flows from investing activities 170,467,674.07 25,720,719.92
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
28
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
Item Jan.-Sept. 2016 Jan.-Sept. 2015
Subtotal of cash inflows from financing activities
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or
18,539,168.00 27,883,693.93
profit
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 18,539,168.00 27,883,693.93
Net cash flows from financing activities -18,539,168.00 -27,883,693.93
IV. Effect of foreign exchange rate changes on cash and cash
1,303.29 10,618.40
equivalents
V. Net increase in cash and cash equivalents -1,529,843.97 3,547,844.63
Add: Opening balance of cash and cash equivalents 7,750,025.58 3,236,270.65
VI. Closing balance of cash and cash equivalents 6,220,181.61 6,784,115.28
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
29
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2016
II Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is unaudited.
30
