Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Tsann Kuen (China) Enterprise Co., Ltd.
Report for the First Quarter of 2017
April 2017
1
Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
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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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Section II Company Profile
I Key financial results
Whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting
policies or correction of accounting errors
□ Yes √ No
Unit: RMB
Item January-March 2017 January-March 2016 +/-%
Operating revenues 454,378,577.36 400,158,372.95 13.55
Net profit attributable to shareholders of the Company 6,800,900.65 6,272,704.45 8.42
Net profit attributable to shareholders of the Company before
5,620,130.15 4,561,371.13 23.21
exceptional profit and loss
Net operating cash flow 3,169,455.03 -21,744,915.13 114.58
Basic earnings per share (RMB/share) 0.04 0.03 33.33
Diluted earnings per share (RMB/share) 0.04 0.03 33.33
Weighted average return on equity (%) 1.10 1.11 -0.01
Item 31 March 2017 31 December 2016 +/-%
Total assets 1,602,588,567.75 1,697,533,004.99 -5.59
Net assets attributable to shareholders of the Company 617,816,036.41 610,856,271.31 1.14
Total share capital up to the former trading date before the disclosure:
Total share capital up to the former trading date before the disclosure (share) 185,391,680
Fully diluted EPS calculated by the newest share capital (RMB/share)
0.04
Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item January-March 2017 Note
Profit/loss on disposal of non-current assets (including offset amount of asset
166,095.78
impairment provisions)
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Item January-March 2017 Note
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 Company and given at a 516,075.00
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.
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 business mergers
under the same control from period-beginnings to merger dates
Profit/loss on contingencies irrelevant to the Company’s normal business activities
Profit/loss on fair value changes of transactional financial assets and liabilities &
investment profit on disposal of transactional financial assets and liabilities as well Earnings from wealth
213,698.63
as financial assets available for sale, except for effectively hedging business related management products
to normal business operations of the Company
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
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Item January-March 2017 Note
Non-operating income and expense other than the above 950,457.93
Other profit/loss that meet the definition of exceptional profit/loss
Less: Income tax effects 238,677.92
Minority interests effects (after tax) 426,878.92
Total 1,180,770.50
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 at the period-end and shareholdings of top ten shareholders
1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as
shareholdings of top ten shareholders
Unit: share
Total number of preference
Total number of common shareholders at the
17,526 shareholders with resumed voting 0
period-end
rights at the period-end (if any)
Shareholdings of top ten shareholders
Number of Pledged or frozen shares
Nature of Shareholding Number of
Name of shareholder restricted shares Status of Number of
shareholder percentage (%) shares held
held shares shares
FORDCHEE Foreign
29.10% 53,940,530 0 N/A 0
DEVELOPMENT LIMITED corporation
EUPA INDUSTRY Foreign
13.09% 24,268,840 0 N/A 0
CORPORATION LIMITED corporation
GUOTAI JUNAN
Foreign
SECURITIES(HONGKONG) 5.74% 10,646,857 0 N/A 0
corporation
LIMITED
FILLMAN INVESTMENTS Foreign
2.49% 4,621,596 0 N/A 0
LIMITED corporation
CHINA MERCHANTS
State-owned
SECURITIES (HK) CO., 1.12% 2,079,750 0 N/A 0
corporation
LTD.
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
SHENWAN HONGYUAN
Foreign
SECURITIES (HK) CO., 1.06% 1,956,752 0 N/A 0
corporation
LTD.
Domestic
CHEN YONGQUAN 1.02% 1,889,019 0 N/A 0
individual
Foreign
CHEN YONGQING 0.79% 1,458,349 0 N/A 0
individual
Foreign
CHEN LIJUAN 0.71% 1,308,017 0 N/A 0
individual
Domestic
DING XIAOLUN 0.58% 1,082,300 0 N/A 0
individual
Shareholdings of top ten non-restricted shareholders
Number of non-restricted Variety of shares
Name of shareholder
shares held Variety Number
FORDCHEE DEVELOPMENT LIMITED 53,940,530 Domestically listed foreign shares 53,940,530
EUPA INDUSTRY CORPORATION
24,268,840 Domestically listed foreign shares 24,268,840
LIMITED
GUOTAI JUNAN
10,646,857 Domestically listed foreign shares 10,646,857
SECURITIES(HONGKONG) LIMITED
FILLMAN INVESTMENTS LIMITED 4,621,596 Domestically listed foreign shares 4,621,596
CHINA MERCHANTS SECURITIES (HK)
2,079,750 Domestically listed foreign shares 2,079,750
CO., LTD.
SHENWAN HONGYUAN SECURITIES (HK)
1,956,752 Domestically listed foreign shares 1,956,752
CO., LTD.
CHEN YONGQUAN 1,889,019 Domestically listed foreign shares 1,889,019
CHEN YONGQING 1,458,349 Domestically listed foreign shares 1,458,349
CHEN LIJUAN 1,308,017 Domestically listed foreign shares 1,308,017
DING XIAOLUN 1,082,300 Domestically listed foreign shares 1,082,300
The first, the second and the fourth largest shareholders are the Company’s corporate
controlling shareholders. It is unknown to the Company whether there exists
Related or acting-in-concert parties among the
associated relationship among the shareholders above or they are acting-in-concert
above shareholders
entities as stipulated in the Administrative Measures on Information Disclosure of
Changes in Shareholding of Listed Companies.
Did any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conduct any
promissory repo during the Reporting Period?
□ Yea √ No
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top ten of them
□ Applicable √ Not applicable
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Section III Significant Events
I Changes in major accounting statement items and financial indicators for the Reporting
Period, as well as reasons for such changes
√ Applicable □ Not applicable
Unit: RMB
31 December
Item 31 March 2017 +/-% Main reason for change
2016
Term deposits increased and the accrued interest
Interest receivable 657,962.20 5,519.56 11,820.56
increased accordingly
Wealth management products of RMB150
Other current assets 301,329,722.22 139,354,484.01 116.23
million were purchased.
Construction in progress 400,542.52 269,633.08 48.55 Increase in ongoing construction
Other non-current assets 862,311.27 1,248,273.23 -30.92 Examination and acceptance of molds
Short-term borrowings 25,113,452.00 0.00 100.00 Export invoice financing.
Notes payable 13,054,224.84 23,251,704.93 -43.86 Maturity of notes payable
Taxes and fares payable 8,040,623.71 16,965,068.11 -52.60 Payment of corporate income tax
January-March
Item January-March 2017 +/-% Main reason for change
2016
Reclassification of some administrative
Taxes and surtaxes 3,337,174.29 2,421,468.97 37.82
expenses into this item
Finance costs 1,738,365.97 -259,634.93 -769.54 Unrealized evaluated exchange loss
Reversal of bad-debt provisions due to
Asset impairment loss -1,181,070.83 1,087,300.12 -208.62
collection of payments from customers
No forward forex contracts for the current
Gains on fair value changes 0.00 5,095,350.00 -100.00
period
Loss on delivered forward forex contracts in the
Returns on investment 213,698.63 -1,003,403.59 121.30
same period of last year
Non-operating revenue 1,689,529.16 1,204,888.70 40.22 Insurance payments for wind damages
Non-operating expense 56,900.45 7,548.59 653.79 Donations to students in need
Corporate income tax 3,622,669.95 1,860,460.96 94.72 Increase in profit
Receivables from customers due at the end of
Net operating cash flow 3,169,455.03 -21,744,915.13 114.58
last year were collected in the current period
Net investment cash flow -300,417,252.45 -180,176,787.85 -66.73 Increased outflow of restricted term deposits
Export invoice financing and borrowings from
Net financing cash flow 21,832,513.50 -11,622,330.69 287.85
related parties increased
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
II Progress of significant events and analysis & explanations on their influence and solutions
√ Applicable □ Not applicable
Contingencies
（1）The subsidiary of the Company - TsannKuen China (Shanghai) Enterprise Co., Ltd. (hereafter, TKS) signed the PlantLeasing
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 FangdiJiaZi (2006) No. 011945, the lease period is from November 2007 to
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 productionshould 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 responsibilityif 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 Courtby cause of action“the lessee SHLX decorated and
subleased the leasehold to Shanghai HujiaFruit 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 withSHLX, and required SHHJ to terminate
constructionand to repristinate the leasehold.
Up to the end of the reporting date, the civil action is still in process.
Shanghai Jiading District People's Court on the Shanghai TsannKuen and SHLX disputes to make civil judgments ((2015) Jia Min
San (Min) ChuziNo.1640) on 23 November 2016: 1) the two sides release the contract on 12 November 2015. 2)SHLX should to
returnto TKS of the site and buildings, dormitory, etc on No. 4407CaoAn Road to Shanghai be effective within 20 days.
Shanghai Jiading District People's Court on the Shanghai TsannKuen and SHHJ dispute made ((2015) Jia Min Er (Shang) the ChuZi
No.2661) civil judgment on 20 November 2016: the decision to support TKS, andthe SHHJ shall immediately stop the infringement
within ten days after the judgment of the court is effective, stop the construction and restore the original appearance of the site.
SHLX and SHHJ are not satisfied with the verdict, and appeal to the Shanghai Second Intermediate People 'sCourt. Shanghai Second
Intermediate People's Court made the ruling by (2016) Shanghai 02 MinZhong No. 10426 on 12 January 2017: dismissed the SHLX
appeal to maintain the Shanghai Jiading District People's Court on the TKS and SHLX lease contract (2015) Jia Min San (Min) the
ChuZi No.1640 civil judgment; as of the date of this report, TKS and SHHJ dispute is under trial.
（2） As MTN Products, Inc. / Water Solutions (Hong Kong) Ltd ("MTN / WSL") did not pay the relevant payment in time and
fulfill the order according to the contract, the subsidiary of the Company, TsannKuen (Zhangzhou) Enterprise Co., Ltd. submitted the
indictment to the SUPERIOR COURT OF CALIFORNIA COUNTY OF LOS ANGELES on November 232017 sued MTN / WSL
for payment of USD707,522.92 and USD1,402,940 for reserve losses, totaling USD2,110,462.92. As of the date of this report, the
case is still pending.
（3）As Philips Lighting (China) Investment Co., Ltd. ("Philips Lighting") did not pay the relevant payment in accordance with the
relevant agreement, the Company's subsidiary TsannKuen (Zhangzhou) Enterprise Co., Ltd., submitted the indictment on 23
November 2016 to Longhai City People's Court, request the payment of CNY2,499,658.4. As of the date of this report, the case is
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
still pending.
（4）TSANN KUEN (CHINA) ENTERPRISE CO., LTD. (therefore "TKC") and Tian Yuan (Xiamen) Asset Management Co., Ltd.
(therefore "Tianyuan") signed the "Land Lease Contract (Northwest Corner)" and“Housing Lease Contract (North Building) "on 26
June 2013, signed the "LandLease Contract (southeast corner) ","Housing Lease Contract (Huarong Road 23) "(part of the house) on
29 July 2013. TKCleased the part of the land and house on Xinglong Road 88 to Tianyuan for business activities, part of the site and
housing leased to Tian Yuan company for business activities.
As Tianyuan did not pay the rent in accordance with the contract in time and unauthorized use of the leased property, TKC filed a
lawsuit in Xiamen Huli District People's Court to pay the relevant rent. As of the date of this report, the case is still pending.
III Commitments of the Company’s actual controller, shareholders, related parties and
acquirer, as well as the Company and other commitment makers, unfulfilled in this reporting
period
√ Applicable □ Not applicable
Time of
Commitment Commitment Period of
Commitment Contents making Fulfillment
maker type commitment
commitment
Commitment on share reform
Commitment in the acquisition
report or the report on equity
changes
Commitments made upon the assets
replacement
Commitments made upon first
issuance or refinance
Commitment on equity incentive
Based on the confidence on
the continuous and stable
development of the The
Company, it committed to Company’s
increase the shareholding if stocks resumed
the Company’s stock price trading on 31
lower than HKD2.40 per Dec. 2012, but
share after the the Company’s
implementation of the stock price
shares contraction and hasn’t met the
trading resumption, and it Within one
condition for
Commitment would increase no more year since
FILLMAN shareholding
Other commitments made to on than 2% shares (i.e. 3.7078 28 Dec. the date of
INVESTMENTS increase since
minority shareholders shareholding million shares) of the total 2012 initial
LIMITED the date of
increase shares issued by the shareholding
trading
Company within one year increase
resumption,
since the date of initial FILLMAN
shareholding increase. If the Investment
plan on increasing holding Limited hasn’t
2% shares of the total shares implemented
is completed, if the stock the
price hasn’t reached the shareholding
target price, it will perform increase plan.
relevant approval
procedures, and propose to
CSRC on continuous
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
implementation of
shareholding increase by
exemption of offering.
Executed on time or not Yes
The specific reasons and next work
plan should be explained in detail if
No
there are any commitments
unfulfilled in this reporting period
No such cases in the reporting period.
IV Operating result forecast for January-June 2017
Forecast of a possible deficit or considerable YoY change in the accumulative net profit made during the period from the beginning
of the year to the end of the next reporting period, as well as explanation of why:
□Applicable √ Not applicable
V Securities investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in derivative financial instruments
□ Applicable √ Not applicable
VII Visits paid to the Company in the Reporting Period for purposes of research,
communication, interview, etc.
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor Index to main inquiry information
2017-02-14 Telephone communication Individual Inquiry the reform of B share
2017-03-29 Telephone communication Individual Inquiry the reform of B share
VIII Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
IX Occupation of the Company’s funds by the controlling shareholder or its related parties
for non-operating purposes
□ Applicable √ Not applicable
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Report for the First Quarter of 2017 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
Item Closing amount Opening amount
Current assets:
Monetary funds 596,497,341.54 749,497,115.33
Settlement reserves
Lendings to banks and other financial institutions
Financial assets measured at fair value with fair value changes included in
the profit and loss for the Reporting Period
Derivative financial assets
Notes receivable 1,431,394.60 1,341,076.70
Accounts receivable 226,660,388.19 273,086,616.38
Accounts paid in advance 7,056,914.13 6,964,904.97
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable 657,962.20 5,519.56
Dividends receivable 0 0
Other accounts receivable 31,881,457.68 40,381,756.08
Financial assets purchased under agreement to resell
Inventories 176,145,818.10 223,569,121.90
Assets held for sale
Non-current assets due within one year
Other current assets 301,329,722.22 139,354,484.01
Total current assets 1,341,660,998.66 1,434,200,594.93
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 40,000.00 40,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments
Investment property 41,561,417.60 42,158,120.51
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Closing amount Opening amount
Fixed assets 172,474,479.19 174,529,010.36
Construction in progress 400,542.52 269,633.08
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 25,341,401.33 23,840,277.12
R&D expense
Goodwill
Long-term deferred expenses 3,774,425.54 4,142,242.19
Deferred income tax assets 16,472,991.64 17,104,853.57
Other non-current assets 862,311.27 1,248,273.23
Total non-current assets 260,927,569.09 263,332,410.06
Total assets 1,602,588,567.75 1,697,533,004.99
Current liabilities:
Short-term borrowings 25,113,452.00
Borrowings from the Central Bank
Money deposits accepted and inter-bank deposits
Loans from banks and other financial institutions
Financial liabilities measured at fair value with fair value changes included in
the profit and loss for the Reporting Period
Derivative financial liabilities
Notes payable 13,054,224.84 23,251,704.93
Accounts payable 486,639,219.70 589,418,458.93
Accounts received in advance 13,174,393.00 11,187,023.96
Financial assets sold for repurchase
Handling charges and commissions payable
Payroll payable 36,248,702.09 45,671,498.70
Taxes and fares payable 8,040,623.71 16,965,068.11
Interest payable 5,584.36
Dividends payable
Other accounts payable 69,366,360.55 58,411,663.19
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities held for sale
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Closing amount Opening amount
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 651,642,560.25 744,905,417.82
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable 187,928.74 187,928.74
Special payables
Estimated liabilities
Deferred income
Deferred income tax liabilities 757,646.03 761,461.43
Other non-current liabilities
Total non-current liabilities 945,574.77 949,390.17
Total liabilities 652,588,135.02 745,854,807.99
Owners’ equity:
Share capital 185,391,680.00 185,391,680.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 296,808,965.79 296,808,965.79
Less: Treasury stock
Other composite income 8,650,766.89 8,491,902.45
Special reserves
Surplus reserves 29,946,218.17 29,946,218.17
Provisions for general risks
Retained profit 97,018,405.56 90,217,504.90
Total equity attributable to owners of the Company 617,816,036.41 610,856,271.31
Minority interests 332,184,396.32 340,821,925.69
Total owners’ equity 950,000,432.73 951,678,197.00
Total liabilities and owners’ equity 1,602,588,567.75 1,697,533,004.99
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Monetary funds 32,336,061.24 6,668,219.24
Financial assets measured at fair value with fair value changes
included in the profit and loss for the Reporting Period
Derivative financial assets
Notes receivable 1,431,394.60 1,341,076.70
Accounts receivable 15,088,091.62 30,084,632.38
Accounts paid in advance 327,764.32 224,212.39
Interest receivable
Dividends receivable
Other accounts receivable 444,963.00 539,684.23
Inventories 11,781,559.47 13,862,241.50
Assets held for sale
Non-current assets due within one year
Other current assets 465,034.74 404,776.38
Total current assets 61,874,868.99 53,124,842.82
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 investments 922,914,701.56 922,914,701.56
Investment property 34,940,863.73 35,720,961.41
Fixed assets 1,884,173.89 1,985,546.98
Construction in progress 92,135.92
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 76,499.99 83,249.99
R&D expense
Goodwill
Long-term deferred expenses 56,866.39 69,866.41
Deferred income tax assets 1,644,691.21 1,910,906.98
Other non-current assets
Total non-current assets 961,649,932.69 962,725,233.33
Total assets 1,023,524,801.68 1,015,850,076.15
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair value with fair value changes
included in the profit and loss for the Reporting Period
Derivative financial liabilities
Notes payable
Accounts payable 59,737,978.74 83,598,309.18
Accounts received in advance 2,692,385.88 930,623.95
Payroll payable 1,424,486.45 2,912,637.07
Taxes and fares payable 531,594.16 647,392.73
Interest payable
Dividends payable
Other accounts payable 298,661,693.99 298,567,356.74
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 363,048,139.22 386,656,319.67
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payables
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Closing balance Opening balance
Special payables
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 0 0
Total liabilities 363,048,139.22 386,656,319.67
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 composite income
Special reserves
Surplus reserves 29,946,218.17 29,946,218.17
Retained profit 173,648,474.47 142,365,568.49
Total owners’ equity 660,476,662.46 629,193,756.48
Total liabilities and owners’ equity 1,023,524,801.68 1,015,850,076.15
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
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Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
3. Consolidated income statement
Unit: RMB
Item January-March 2017 January-March 2016
1. Operating revenues 454,378,577.36 400,158,372.95
Including: Sales income 454,378,577.36 400,158,372.95
Interest income
Premium income
Handling charge and commission income
2. Total operating costs 444,388,401.44 395,648,344.39
Including: Cost of sales 387,349,957.02 332,766,010.74
Interest expenses
Handling charge and commission expenses
Surrenders
Net claims paid
Net amount provided as insurance contract reserves
Expenditure on policy dividends
Reinsurance premium
Taxes and surtaxes 3,337,174.29 2,421,468.97
Selling expenses 17,801,039.57 21,222,925.10
Administrative expenses 35,342,935.42 38,410,274.39
Financial costs 1,738,365.97 -259,634.93
Asset impairment loss -1,181,070.83 1,087,300.12
Add: Profit/loss on fair value changes (“-” means loss) 5,095,350.00
Profit/loss on investment (“-” means loss) 213,698.63 -1,003,403.59
Including: Share of profit in associates and joint ventures
Foreign exchange profit (“-” means loss)
3. Operating profit (“-” means loss) 10,203,874.55 8,601,974.97
Add: Non-operating income 1,689,529.16 1,204,888.70
Including: Profit on disposal of non-current assets 172,996.23 283,856.27
Less: Non-operating expense 56,900.45 7,548.59
Including: Loss on disposal of non-current assets 6,900.45 1,087.72
4. Total profit (“-” means loss) 11,836,503.26 9,799,315.08
Less: Corporate income tax 3,622,669.95 1,860,460.96
5. Net profit (“-” means loss) 8,213,833.31 7,938,854.12
Net profit attributable to owners of the Company 6,800,900.65 6,272,704.45
Minority shareholders’ income 1,412,932.66 1,666,149.67
6. After-tax net amount of other composite income 211,819.25 -270,466.96
After-tax net amount of other composite income attributable to owners
158,864.44 -202,850.22
of the Company
17
Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Item January-March 2017 January-March 2016
6.1 Other composite income that will not be reclassified into profit
15,614.61
and loss
6.1.1 Changes in net liabilities or assets with a defined benefit plan
15,614.61
upon re-measurement
6.1.2 Enjoyable share in other comprehensive income in investees
that cannot be reclassified into profit and loss under the equity method
6.2 Other composite income that will be reclassified into profit and
143,249.83 -202,850.22
loss
6.2.1 Enjoyable share in other composite income in investees that
will be reclassified into profit and loss under the equity method
6.2.2 Profit and loss on fair value changes of available-for-sale
financial assets
6.2.3 Profit and loss on reclassifying held-to-maturity investments
into available-for-sale financial assets
6.2.4 Effective hedging profit and loss on cash flow
6.2.5 Foreign-currency financial statement translation difference 143,249.83 -202,850.22
6.2.6 Other
After-tax net amount of other composite income attributable to minority
52,954.81 -67,616.74
shareholders
7. Total composite income 8,425,652.56 7,668,387.16
Attributable to owners of the Company 6,959,765.09 6,069,854.23
Attributable to minority shareholders 1,465,887.47 1,598,532.93
8. Earnings per share
8.1 Basic earnings per share 0.04 0.03
8.2 Diluted earnings per share 0.04 0.03
Where business mergers under the same control occurred in the Reporting Period, net profit achieved by the merged parties before
the business mergers was RMB 0.00, with the corresponding amount for the same period of last year being RMB -2,204,397.97.
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
18
Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
4. Income statement of the Company
Unit: RMB
Item January-March 2017 January-March 2016
1. Operating revenues 21,002,892.18 21,271,402.42
Less: Operating costs 15,142,772.24 14,745,029.67
Taxes and surtaxes 729,157.30 291,003.83
Selling expenses 2,156,628.15 2,306,282.89
Administrative expenses 2,943,317.20 3,168,759.81
Financial costs -15,902.72 -14,206.99
Asset impairment loss -1,150,303.33 472,593.00
Add: profit/loss on fair value changes (“-” means loss)
Profit/loss on investment (“-” means loss) 30,310,250.78 107,582,142.80
Including: Income from investment on associates and joint ventures
2. Operating profit (“-” means loss) 31,507,474.12 107,884,083.01
Add: Non-operating income 41,647.63 115,892.49
Including: Profit on disposal of non-current assets
Less: Non-operating expense
Including: Loss on disposal of non-current assets
3. Total profit (“-” means loss) 31,549,121.75 107,999,975.50
Less: Corporate income tax 266,215.77 16,198,205.71
4. Net profit (“-” means loss) 31,282,905.98 91,801,769.79
5. After-tax net amount of other composite income
5.1 Other composite income that will not be reclassified into profit and
loss
5.1.1 Changes in net liabilities or assets with a defined benefit plan
upon re-measurement
5.1.2 Enjoyable share in other composite income in investees that
cannot be reclassified into profit and loss under the equity method
5.2 Other composite income that will be reclassified into profit and loss
5.2.1 Enjoyable share in other composite income in investees that
will be reclassified into profit and loss under the equity method
5.2.2 Profit and loss on fair value changes of available-for-sale
financial assets
5.2.3 Profit and loss on reclassifying held-to-maturity investments
into available-for-sale financial assets
5.2.4 Effective hedging profit and loss on cash flow
5.2.5 Foreign-currency financial statement translation difference
5.2.6 Other
6. Total composite income 31,282,905.98 91,801,769.79
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
19
Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
5. Consolidated cash flow statement
Unit: RMB
Item January-March 2017 January-March 2016
1. Operating cash flow:
Cash received from sale of commodities and rendering of service 491,298,063.61 446,984,396.18
Net increase in money deposits from customers and inter-bank placements
Net increase in loans from the Central Bank
Net increase in funds borrowed from other financial institutions
Cash received from premium of original insurance contracts
Net cash received from reinsurance business
Net increase in deposits of policy holders and investment fund
Net increase in disposal of financial assets measured at fair value with fair
value changes included in the profit and loss for the Reporting Period
Cash received from interest, handling charges and commissions
Net increase in loans from banks and other financial institutions
Net increase in funds in repurchase business
Tax refunds received 50,899,572.11 60,112,623.06
Other operating cash received 19,055,478.67 15,979,818.57
Subtotal of operating cash inflow 561,253,114.39 523,076,837.81
Cash paid for goods and services 421,536,510.47 433,353,207.67
Net increase in loans and advances to customers
Net increase in funds deposited in the Central Bank and inter-bank
placements
Cash for paying claims of original insurance contracts
Cash for paying interest, handling charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 71,049,721.91 69,738,370.16
Taxes and fares paid 16,287,373.30 7,057,054.50
Other cash payment relating to operating activities 49,210,053.68 34,673,120.61
Subtotal of operating cash outflow 558,083,659.36 544,821,752.94
Net operating cash flow 3,169,455.03 -21,744,915.13
2. Investment cash flow:
Cash received from retraction of investments 32,729,887.43 -1,011,877.61
Cash received from return on investments 229,280.83
Net cash received from disposal of fixed assets, intangible assets and other
1,882,588.00 4,916,418.16
long-term assets
Net cash received from disposal of subsidiaries or other business units
Other cash received relating to investment activities 9,819,374.14 55,400,000.00
Subtotal of investment cash inflow 44,661,130.40 59,304,540.55
Cash paid to acquire fixed assets, intangible assets and other long-term
18,968,169.49 17,423,362.34
assets
20
Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Item January-March 2017 January-March 2016
Cash paid for investment 192,047,415.57 156,257,966.06
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investment activities 134,062,797.79 65,800,000.00
Subtotal of investment cash outflow 345,078,382.85 239,481,328.40
Net investment cash flow -300,417,252.45 -180,176,787.85
3. Financing cash flow:
Cash received from capital contributions
Including: Cash received from minority shareholder investments by
subsidiaries
Cash received as borrowings 25,036,648.00 2,202,002.00
Cash received from issuance of bonds
Other financing cash received 6,899,282.43
Subtotal of financing cash inflow 31,935,930.43 2,202,002.00
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or profit 10,103,416.93 13,824,332.69
Including: dividends or profit paid by subsidiaries to minority
10,103,416.93 13,824,332.69
shareholders
Other cash payments relating to financing activities
Sub-total of financing cash outflow 10,103,416.93 13,824,332.69
Net financing cash flow 21,832,513.50 -11,622,330.69
4. Effect of foreign exchange rate changes on cash and cash equivalents -2,285,644.08 -1,074,884.20
5. Net increase in cash and cash equivalents -277,700,928.00 -214,618,917.87
Add: Opening balance of cash and cash equivalents 738,195,729.53 675,824,861.29
6. Closing balance of cash and cash equivalents 460,494,801.53 461,205,943.42
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
21
Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
6. Cash flow statement of the Company
Unit: RMB
Item January-March 2017 January-March 2016
1. Operating cash flow:
Cash received from sale of commodities and rendering of service 35,261,061.42 34,011,853.31
Tax refunds received
Other operating cash received 14,251,817.18 12,639,614.14
Subtotal of operating cash inflow 49,512,878.60 46,651,467.45
Cash paid for goods and services 38,935,020.23 28,594,423.79
Cash paid to and for employees 4,595,972.16 4,962,672.42
Taxes and fares paid 1,423,553.61 1,606,283.12
Other operating cash payments 9,177,813.37 97,383,180.93
Subtotal of operating cash outflow 54,132,359.37 132,546,560.26
Net operating cash flow -4,619,480.77 -85,895,092.81
2. Investment cash flow:
Cash received from retraction of investments 65,000,000.00
Cash received from return on investments 30,310,250.78 41,472,998.07
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 investment activities
Subtotal of investment cash inflow 30,310,250.78 106,472,998.07
Cash paid to acquire fixed assets, intangible assets and other
22,950.00 13,798.00
long-term assets
Cash paid for investment 1,000,000.00
Net cash paid to acquire subsidiaries and other business units
Other investment cash payments
Subtotal of investment cash outflow 22,950.00 1,013,798.00
Net investment cash flow 30,287,300.78 105,459,200.07
3. Financing cash flow:
Cash received from capital contributions
Cash received as borrowings
Cash received from issuance of bonds
Other financing cash received
Subtotal of financing cash inflow
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or
profit
Other cash payments relating to financing activities
22
Report for the First Quarter of 2017 of Tsann Kuen (China) Enterprise Co., Ltd.
Item January-March 2017 January-March 2016
Sub-total of financing cash outflow 0 0
Net financing cash flow 0 0
4. Effect of foreign exchange rate changes on cash and cash equivalents 21.99 -71.26
5. Net increase in cash and cash equivalents 25,667,842.00 19,564,036.00
Add: Opening balance of cash and cash equivalents 6,668,219.24 7,750,025.58
6. Closing balance of cash and cash equivalents 32,336,061.24 27,314,061.58
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
II Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is not audited.
23
