Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Tsann Kuen (China) Enterprise Co., Ltd.
Report for the Third Quarter of 2019
October 2019
1
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Section I Important Statements
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Tsann Kuen (China) Enterprise Co., Ltd. (together
with its consolidated subsidiaries, the “Company”, except where the context otherwise
requires) hereby guarantee the factuality, accuracy and completeness of the contents of this
Report and its summary, and shall be jointly and severally liable for any misrepresentations,
misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Mr. Pan Zhirong, company principal, and Mr. Wu Jianhua, head of the accounting work &
the accounting division (head of accounting) hereby guarantee that the financial statements
carried in this Report are factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
2
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Section II Company Profile
I Key financial results
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Unit: RMB
30 September 31 December
Item Change (%)
2019 2018
Total assets 1,954,892,781.06 1,842,514,750.64 6.10
Equity attributable to shareholders of the Company 726,606,403.59 648,801,684.35 11.99
Item Q3 2019 YoY change (%) Q1-Q3 2019 YoY change (%)
Operating revenue 567,950,007.62 -5.07 1,497,398,991.00 16.09
Net profit attributable to shareholders of the Company 34,915,901.13 49.06 82,208,469.08 1,771.64
Net profit attributable to shareholders of the Company
34,968,587.22 64.30 44,832,321.67 551.66
before exceptional profit and loss
Net operating cash flow 46,236,107.54 -14.91 50,403,316.97 176.97
Basic earnings per share 0.18 50.00 0.44 1,566.67
Diluted earnings per share 0.18 50.00 0.44 1,566.67
Weighted average return on equity (%) 4.88 0.95 11.90 12.70
Total share capital up to the former trading date before the disclosure:
Total share capital up to the former trading date
185,391,680
before the disclosure (share)
Fully diluted EPS calculated by the newest share capital:
Fully diluted EPS calculated by the newest share
0.44
capital (RMB/share)
Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
January-September
Item Note
2019
Profit/loss on disposal of non-current assets (including offset amount of asset
63,553,375.02
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
24,423,952.00
for the government grants closely related to the business of the Company and
3
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
January-September
Item Note
2019
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.
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
Mainly the investment
income of sales of forward
Profit/loss on fair value changes of transactional financial assets and liabilities &
foreign exchange contract,
investment profit on disposal of transactional financial assets and liabilities as
4,935,188.65 income from changes in fair
well as financial assets available for sale, except for effectively hedging business
value, and other current
related to normal business operations of the Company
assets income from wealth
management products
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 5,635,329.21
Other profit/loss that meet the definition of exceptional profit/loss
Less: Income tax effects 23,794,421.97
Minority interests effects (after tax) 37,377,275.50
Total 37,376,147.41
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
4
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
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 common shareholders at Total number of preference shareholders with
16,021 0
the period-end resumed voting rights at the period-end
Shareholdings of top ten shareholders
Sharehol Pledged or frozen shares
Number of
Nature of ding Number of
Name of shareholder restricted shares Number of
shareholder percenta shares held Status of shares
held shares
ge (%)
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 4.95% 9,170,982 0 N/A 0
corporation
) LIMITED
FILLMAN INVESTMENTS Foreign
2.49% 4,621,596 0 N/A 0
LIMITED corporation
SHENWAN HONGYUAN
Foreign
SECURITIES (HK) CO., 1.09% 2,016,752 0 N/A 0
corporation
LTD.
Domestic
CHEN YONGQUAN 1.03% 1,900,776 0 N/A 0
individual
CHEN YONGQING Foreign individual 0.84% 1,561,249 0 N/A 0
CHEN LIJUAN Foreign individual 0.75% 1,398,634 0 N/A 0
Domestic
DING XIAOLUN 0.63% 1,173,500 0 N/A 0
individual
Domestic
XU QIANMING 0.33% 618,259 0 N/A 0
individual
Shareholdings of top ten non-restricted shareholders
Number of Variety of shares
Name of shareholder unrestricted
Variety Number
shares held
FORDCHEE DEVELOPMENT LIMITED 53,940,530 Domestically listed foreign shares 53,940,530
EUPA INDUSTRY CORPORATION LIMITED 24,268,840 Domestically listed foreign shares 24,268,840
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 9,170,982 Domestically listed foreign shares 9,170,982
FILLMAN INVESTMENTS LIMITED 4,621,596 Domestically listed foreign shares 4,621,596
5
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
SHENWAN HONGYUAN SECURITIES (HK) CO., LTD. 2,016,752 Domestically listed foreign shares 2,016,752
CHEN YONGQUAN 1,900,776 Domestically listed foreign shares 1,900,776
CHEN YONGQING 1,561,249 Domestically listed foreign shares 1,561,249
CHEN LIJUAN 1,398,634 Domestically listed foreign shares 1,398,634
DING XIAOLUN 1,173,500 Domestically listed foreign shares 1,173,500
XU QIANMING 618,259 Domestically listed foreign shares 618,259
The first, the second and the fourth largest shareholders are the
Company’s corporate controlling shareholders. It is unknown to the
Related or acting-in-concert parties among the above Company whether there exists associated relationship among the
shareholders shareholders above or they are acting-in-concert entities as stipulated in
the Administrative Measures on Information Disclosure of Changes in
Shareholding of Listed Companies.
Top 10 shareholders involved in securities margin trading N/A
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?
□ Yes √ No
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
30 September 31 December
Item +/-% Main reason for change
2019 2018
Financial assets measured at fair
value with fair value changes Decline in assessed gains on forward forex contracts in the
123,789.00 1,440,700.00 -91.41
included in the profit and loss for current period
the Reporting Period
Prepayments for aluminium ingot and prepaid plant rents in
Prepayments 16,822,846.57 2,668,796.33 530.35
the current period
Assets held for sale 0.00 4,311,436.92 -100.00 Completion of asset disposal in the current period
No acceptance of premises renovation work upon
Construction in progress 1,594,856.44 895,756.17 78.05
examination in the current period
Acceptance of the equipment that had been prepaid for in
Other non-current assets 1,975,525.02 3,495,224.64 -43.48
the current period
Short-term borrowings 15,348,260.30 10,432,044.21 47.13 Increase in guaranteed loans in the current period
Financial liabilities measured at
Assessed losses on forward forex contracts in the current
fair value with fair value changes 7,805,500.00 0.00 100.00
period
included in the profit and loss for
6
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
30 September 31 December
Item +/-% Main reason for change
2019 2018
the Reporting Period
Advances from customers 15,995,813.35 9,747,158.90 64.11 Advances from customer for goods in the current period
Withdrawal of enterprise income tax for increase in net
Taxes and fares payable 13,627,462.25 3,768,531.07 261.61
profit in the current period
Recognition of deferred income tax liabilities from asset
Deferred income tax liabilities 48,315,954.43 27,505,224.10 75.66 disposal for policy plant demolition Phase II of Tsann Kuen
China (Shanghai) Enterprise Co., Ltd. in current period
Other comprehensive income 8,130,226.45 5,924,132.67 37.24 Rise in currency translation income
January-Septembe January-Septem
Item +/-% Main reason for change
r 2019 ber 2018
Other income 3,261,776.00 2,276,139.00 43.30 Increase in government subsidies in current period
Increase in income from wealth management product in the
Investment income 14,057,599.65 9,744,079.99 44.27
current period
Decline in inventory valuation allowances in the current
Asset impairment loss -2,312,972.35 -12,648,743.40 81.71
period
Gains on asset disposal for policy plant demolition Phase II
Asset disposal income 63,553,375.02 368,732.74 17,135.62 of Tsann Kuen China (Shanghai) Enterprise Co., Ltd. in
current period
Subsidies for policy plant demolition Phase II of Tsann
Non-business revenue 26,875,443.46 3,104,942.74 765.57 Kuen China (Shanghai) Enterprise Co., Ltd. in current
period
Non-business expenses 77,938.25 57,120.31 36.45 Increase in donation expenses in the current period
Recognition of deferred income tax liabilities from asset
Income tax expense 37,524,398.17 -271,427.47 13,924.83 disposal for policy plant demolition Phase II of Tsann Kuen
China (Shanghai) Enterprise Co., Ltd. in current period
Increase in YoY overall profit due to subsidies for
expropriation of plant Phase II of Tsann Kuen China
Net profit 134,990,727.84 -9,083,916.37 1,586.04 (Shanghai) Enterprise Co., Ltd., increase in operating
revenue and influence of RMB exchange rate in current
period
Increase in operating revenue and cash received from sales
Net operating cash flow 50,403,316.97 -65,482,868.76 176.97
of goods in the current period
1. Net amount of wealth management product recovered in
the Reporting Period increased compared to that of the sam
Net investing cash flow -100,359,011.02 -256,498,962.27 60.87 e period of last year
2. Receipt of accounts from asset disposal of Phase II of Ts
ann Kuen China (Shanghai) Enterprise Co., Ltd.
Increase in YoY dividend payment and loans of
Net financing cash flow -10,570,441.66 48,471,387.05 -121.81
subsidiaries
7
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
II Progress of significant events and analysis & explanations on their influence and solutions
√ Applicable □ Not applicable
1. Contingencies
(1) 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 23 November 2016 to sue MTN / WSL
for payment of USD707,522.92 and USD1,402,940 for reserve losses, totaling USD2,110,462.92. Both parties signed the settlement
agreement on 22 August 2019 and completed the action withdrawal without any influence on the Company’s profit in the current
period.
2. Progress of significant events
Website where the relevant
Overview of significant event Disclosure date current announcement is
disclosed
The controlling subsidiary company, Tsann Kuen China (Shanghai) Enterprise
Co., Ltd signed the Expropriation Compensation Agreement (second phase of the
16 January 2019 www.cninfo.com.cn
factory) and received the first installment of expropriation compensation of
RMB44,172,066.5 on 15 January 2019.
The controlling subsidiary company, Tsann Kuen China (Shanghai) Enterprise
Co., Ltd signed the Expropriation Compensation Agreement (second phase of the
26 January 2019 www.cninfo.com.cn
factory) and received the final installment of expropriation compensation of
RMB44,172,066.5 on 25 January 2019.
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
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
IV Operating result forecast for 2019
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
8
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
V Securities investments
□ Applicable √ Not applicable
VI Wealth management entrustment
√ Applicable □ Not applicable
Unit: RMB’0,000
Outstanding amount
Type of wealth management Funding source Principal Overdue amount
before maturity
Wealth management product
Self-funded 64,500.00 49,000.00 0.00
purchased from bank
High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no
protection of the principal
□ Applicable √ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal
□ Applicable √ Not applicable
9
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
VII Investments in derivative financial instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Ratio of
Investment investment
Type of Investment
amount at Amount amount at the end
Related-party investment in Initial Pursed in this Sold in this amount Actual
Commencement the provided of the period to
Operating party Relation transaction derivative investment Termination date beginning reporting reporting at the end profit/loss for
date for the Company's
or not financial amount period period of the the period
of the impairment net asset at the
instruments period
period end of the period
(%)
September 30,
Bank No No Forward forex 82,556.37 January 1, 2019 22,778.24 59,778.13 46,323.88 36,232.49 49.87 -1,014.78
2019
Total 82,556.37 22,778.24 59,778.13 46,323.88 36,232.49 49.87 -1,014.78
Source of investment funds All from the Company's own funds
Lawsuits No lawsuits
Disclosure date of the announcement about the board’s
March 12, 2013
consent for the investment
Disclosure date of the announcement about the general
May 18, 2013
meeting’s consent for the investment
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
Risk analysis and risk control measures for positions held in purposes than risk avoidance. The Company shall not conduct complex derivative trading above the actual operation needs and shall not speculate in
derivatives in this reporting period (including but not derivative trading with hedging as an excuse. The overall contractual amount for risk avoidance of the Company shall not exceed the summation of
limited to market risk, liquidity risk, credit risk, operational the net risk exposure of the existing assets and liabilities and the net risk exposure of assets and liabilities arising from the operation of the Company
risk, legal risk, etc.) in the coming year.
(2) Staff requirements: Personnel taking part in the investment shall all fully understand the risks of derivative investment and strictly execute the
business operation and risk management mechanisms for derivative investment.
(3) Operation standardization: Before making a derivative investment, the Company shall rationally equip itself with professional personnel for
investment decision-making, business operation, risk control, etc. It shall also inquire and compare among various markets and products. Besides, it
10
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Ratio of
Investment investment
Type of Investment
amount at amount at the end
Related-party investment in Initial Pursed in this Sold in this Amount amount Actual
Commencement the provided of the period to
Operating party Relation transaction derivative investment Termination date beginning reporting reporting at the end profit/loss for
date for the Company's
or not financial amount period period of the the period
of the impairment net asset at the
instruments period
period end of the period
(%)
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.
(6) Audit system: The audit department audits derivative product trading periodically and submits audit reports to relevant units.
(1) Losses on delivered derivatives in the Reporting Period were RMB1.0254 million, and assessed loss on those unsettled was RMB9.1224 million,
Changes in market price or fair value of derivatives invested including an RMB1.4407 million reversal of the assessed gains on unsettled forward forex contracts of last year.
in this reporting period (specific methods used and relevant (2) The former contracted bank provided monthly sheets of estimated exchange rates for the undue contracted forward exchanges on the last trading
assumption and parameter settings shall be disclosed for day of the month.
analysis of fair value of derivatives) (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.
Significant changes in the Company’s accounting policies
and specific accounting principles for derivatives in this No significant changes
reporting period as compared to the prior period
Special opinions expressed by independent directors The Company has carried out a strict internal assessment for the financial derivative business and has established a corresponding supervision
concerning the Company’s derivatives investment and risk mechanism. We are of the opinion that the financial derivative business conducted by the Company is fairly necessary in its routine operation and is
control in compliance with relevant laws and regulations, with the risks controllable.
11
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
VIII 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 About
Inquired of the operation of the
September 27, 2019 By phone Individual
Company
IX Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s funds by the controlling shareholder or its related parties for
non-operating purposes
□ Applicable √ Not applicable
12
Report for the Third Quarter of 2019 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 30 September 2019 31 December 2018
Current assets:
Monetary funds 563,629,573.66 469,692,295.47
Financial assets measured at fair value with fair value changes
123,789.00 1,440,700.00
included in the profit and loss for the Reporting Period
Derivative financial assets
Notes and accounts receivable 356,890,916.24 280,796,130.89
Of which: Notes receivable 0.00 200,000.00
Accounts receivable 356,890,916.24 280,596,130.89
Accounts paid in advance 16,822,846.57 2,668,796.33
Other accounts receivable 26,188,791.41 29,944,042.47
Of which: Interests receivable 2,433,668.78 0.00
Dividends receivable
Inventories 216,173,298.82 243,262,500.58
Assets held for sale 0.00 4,311,436.92
Non-current assets due within one year
Other current assets 497,313,762.59 527,497,484.82
Total current assets 1,677,142,978.29 1,559,613,387.48
Non-current assets:
Available-for-sale financial assets 40,000.00 40,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments
Investment property 23,937,655.33 25,014,648.31
Fixed assets 186,688,116.54 191,073,302.46
Construction in progress 1,594,856.44 895,756.17
Productive living assets
Oil-gas assets
Intangible assets 32,097,444.94 27,771,236.03
R&D expense
Goodwill
Long-term prepaid expense 7,146,916.85 8,058,867.12
Deferred income tax assets 24,269,287.65 26,552,328.43
Other non-current assets 1,975,525.02 3,495,224.64
Total non-current assets 277,749,802.77 282,901,363.16
Total assets 1,954,892,781.06 1,842,514,750.64
13
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Item 30 September 2019 31 December 2018
Current liabilities:
Short-term borrowings 15,348,260.30 10,432,044.21
Financial liabilities at fair value through profit or loss 7,805,500.00 0.00
Derivative financial liabilities
Notes and accounts payable 618,851,034.93 672,895,647.66
Of which: Notes payable 26,717,493.62 17,120,079.05
Accounts payable 592,133,541.31 655,775,568.61
Accounts received in advance 15,995,813.35 9,747,158.90
Payroll payable 45,080,043.06 48,587,140.78
Taxes payable 13,627,462.25 3,768,531.07
Other accounts payable 49,832,667.36 52,818,204.91
Of which: Interests payable 0.00 23,919.09
Dividends payable
Reinsurance premiums payables
Insurance contract reserve
Payables for acting trading of securities
Payables for underwriting of securities
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 766,540,781.25 798,248,727.53
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable 414,432.69 361,923.23
Estimated liabilities
Deferred income
Deferred income tax liabilities 48,315,954.43 27,505,224.10
Other non-current liabilities
Total non-current liabilities 48,730,387.12 27,867,147.33
Total liabilities 815,271,168.37 826,115,874.86
Shareholders’ equity:
Share capital 185,391,680.00 185,391,680.00
Other equity instruments
Of which: Preferred shares
Perpetual bonds
Capital reserves 296,808,965.79 296,808,965.79
Less: Treasury stock
Other composite income 8,130,226.45 5,924,132.67
Special reserves
Surplus reserves 37,770,482.76 37,804,354.59
Provisions for general risks
Retained profit 198,505,048.59 122,872,551.30
Total equity attributable to shareholders of the Company 726,606,403.59 648,801,684.35
Minority interests 413,015,209.10 367,597,191.43
Total shareholders’ equity 1,139,621,612.69 1,016,398,875.78
Total liabilities and shareholders’ equity 1,954,892,781.06 1,842,514,750.64
Legal representative: Pan Zhirong Chief of the accounting work: Wu Jianhua Chief of the accounting organ: Wu Jianhua
14
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
2. Balance sheet of the Company
Unit: RMB
Item 30 September 2019 31 December 2018
Current Assets:
Monetary funds 7,554,368.17 6,985,345.44
Financial assets measured at fair value with fair value changes
included in the profit and loss for the Reporting Period
Derivative financial assets
Notes and accounts receivable 6,416,138.69 16,443,882.91
Of which: Notes receivable 200,000.00
Accounts receivable 6,416,138.69 16,243,882.91
Accounts paid in advance 352,800.00 260,472.55
Other accounts receivable 3,642,254.20 2,213,373.51
Of which: Interests receivable
Dividends receivable
Inventories 3,560,312.55 9,339,180.06
Assets held for sale
Non-current assets due within one year
Other current assets 199,345.92 381,431.15
Total current assets 21,725,219.53 35,623,685.62
Non-current assets:
Available-for-sale financial assets 40,000.00 40,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 923,414,701.56 921,914,701.56
Investment property 28,115,480.49 29,863,349.12
Fixed assets 1,067,750.65 1,189,309.65
Construction in progress 291,958.22
Productive living assets
Oil-gas assets
Intangible assets 8,999.99 29,249.99
R&D expense
Goodwill
Long-term prepaid expense 117,660.50
Deferred income tax assets 8,586,800.91 10,946,860.01
Other non-current assets 53,879.31
Total non-current assets 961,643,352.32 964,037,349.64
Total assets 983,368,571.85 999,661,035.26
15
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Item 30 September 2019 31 December 2018
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 and accounts payable 36,690,613.08 58,463,830.39
Of which: Notes payable
Accounts receivable 36,690,613.08 58,463,830.39
Accounts received in advance 1,000,655.00 1,708,795.17
Payroll payable 5,942,134.59 5,338,618.00
Taxes payable 580,608.40 666,695.14
Other accounts payable 251,082,927.47 262,786,311.87
Of which: Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 295,296,938.54 328,964,250.57
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preferred shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 295,296,938.54 328,964,250.57
Shareholders’ equity:
Share capital 185,391,680.00 185,391,680.00
Other equity instruments
Of which: Preferred shares
Perpetual bonds
Capital reserves 271,490,289.82 271,490,289.82
Less: Treasury stock
Other composite income
Special reserves
Surplus reserves 37,770,482.76 37,804,354.59
Provisions for general risks
Retained profit 193,419,180.73 176,010,460.28
Total shareholders’ equity 688,071,633.31 670,696,784.69
Total liabilities and shareholders’ equity 983,368,571.85 999,661,035.26
Legal representative: Pan Zhirong Chief of the accounting work: Wu Jianhua Chief of the accounting organ: Wu Jianhua
16
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
3. Consolidated income statement for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Operating revenues 567,950,007.62 598,301,806.56
Including: Sales revenue 567,950,007.62 598,301,806.56
2. Total operating costs 513,764,875.84 562,044,317.38
Including: Cost of sales 465,320,577.82 511,559,347.10
Taxes and surcharges 2,789,111.99 2,924,289.24
Selling expense 17,180,100.98 19,362,202.21
Administrative expense 19,627,118.43 21,296,613.25
R&D expense 20,421,277.44 17,320,328.99
Finance costs -11,573,310.82 -10,418,463.41
Of which: Interest expense 292,383.43 192,293.47
Interest revenue 1,941,025.34 1,352,502.66
Add: Other income 644,009.00 714,047.00
Profit/loss on investment (“-” for loss) 5,744,560.68 -132,820.99
Including: Share of profit in associates and joint ventures
Profit/loss on fair value changes (“-” means loss) -4,977,061.00 2,153,400.00
Asset impairment loss (“-” for loss) -393,616.48 -7,825,409.98
Income arising from disposal of assets (“-” means loss) 154,955.42 -7,450.86
3. Operating profit (“-” for loss) 55,357,979.40 31,159,254.35
Add: Non-operating income 693,632.09 637,368.87
Less: Non-operating expense 57,435.55 19,905.62
4. Profit before tax (“-” for loss) 55,994,175.94 31,776,717.60
Less: Income tax expense 7,703,418.05 767,082.04
5. Net profit (“-” for net loss) 48,290,757.89 31,009,635.56
5.1 Classified by operating continuity
5.1.1 Net profit from going concern (“-” means net loss) 48,290,757.89 31,009,635.56
5.1.2 Net profit from discontinued operations (“-” means net
loss)
5.2 Classified by ownership
5.2.1 Minority shareholders’ income (“-” means net loss) 13,374,856.76 7,585,769.86
5.2.2 Net profit attributable to owners of the Company (“-”
34,915,901.13 23,423,865.70
means net loss)
6. After-tax net amount of other composite income 2,729,221.82 2,297,951.56
After-tax net amount of other composite income attributable to
2,046,916.36 1,723,463.67
shareholders of the Company
6.1 Other composite income that will not be reclassified to
profit or loss
6.1.1 Changes caused by remeasurements on defined benefit
pension schemes
6.1.2 Share of other composite income of investees that will
not be reclassified to profit or loss under equity method
6.2 Other composite income that will be reclassified to profit
2,046,916.36 1,723,463.67
or loss
6.2.1 Share of other composite income of investees that will
17
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Q3 2019 Q3 2018
be reclassified to profit or loss under equity method
6.2.2 Gain/Loss on changes in fair value of available-for-sale
financial assets
6.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale financial assets
6.2.4 Effective gain/loss on cash flow hedges
6.2.5 Differences arising from translation of foreign
2,046,916.36 1,723,463.67
currency-denominated financial statements
6.2.6 Other
After-tax net amount of other composite income attributable to
682,305.46 574,487.89
minority shareholders
7. Total comprehensive income 51,019,979.71 33,307,587.12
Attributable to shareholders of the Company 36,962,817.49 25,147,329.37
Attributable to minority interests 14,057,162.22 8,160,257.75
8. Earnings per share
8.1 Basic earnings per share 0.18 0.12
8.2 Diluted earnings per share 0.18 0.12
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Pan Zhirong Chief of the accounting work: Wu Jianhua Chief of the accounting organ: Wu Jianhua
18
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
4. Income statement of the Company for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Operating revenues 21,337,483.46 27,973,310.19
Less: Operating costs 15,089,616.94 22,958,078.34
Taxes and surtaxes 443,563.59 865,677.25
Selling expenses 1,013,254.54 1,591,859.19
Administrative expenses 1,448,761.21 904,331.37
R&D expenses
Finance costs -22,082.56 -28,906.93
Of which: Interest expense
Interest revenue 26,232.44 4,432.76
Add: Other income
Profit/loss on investment (“-” for loss)
Including: Share of profit in associates and joint ventures
Profit/loss on fair value changes (“-” means loss)
Asset impairment loss (“-” for loss) -50,718.86 -2,880,418.89
Income arising from disposal of assets (“-” means loss)
2. Operating profit (“-” for loss) 3,313,650.88 -1,198,147.92
Add: Non-operating revenue 342,116.55 138,260.65
Less: Non-operating expense
3. Profit before tax (“-” for loss) 3,655,767.43 -1,059,887.27
Less: Income tax expense 3,009,611.63 -640,998.08
4. Net profit (“-” for net loss) 646,155.80 -418,889.19
4.1 Net profit from going concern (“-” for net loss) 646,155.80 -418,889.19
4.2 Net profit from discontinued operations (“-” for net loss)
5. After-tax net amount of other composite income
5.1 Other composite income that will not be reclassified to
profit or loss
5.1.1 Changes in net liabilities or assets caused by
remeasurements on defined benefit pension schemes
5.1.2 Share of other composite income of investees that will
not be reclassified to profit or loss under equity method
5.2 Other composite income that will be reclassified to profit or
loss
5.2.1 Share of other composite income of investees that will
be reclassified to profit or loss under equity method
5.2.2 Gain/Loss on changes in fair value of available-for-sale
financial assets
5.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale financial assets
5.2.4 Effective gain/loss on cash flow hedges
19
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Q3 2019 Q3 2018
5.2.5 Differences arising from translation of foreign
currency-denominated financial statements
5.2.6 Other
6. Total composite income 646,155.80 -418,889.19
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Pan Zhirong Chief of the accounting work: Wu Jianhua Chief of the accounting organ: Wu Jianhua
20
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
5. Consolidated income statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Revenue 1,497,398,991.00 1,289,812,311.79
Of which: Operating revenue 1,497,398,991.00 1,289,812,311.79
2. Operating costs and expenses 1,421,118,737.52 1,294,174,686.39
Of which: Operating costs 1,261,653,155.30 1,137,008,364.49
Taxes and surtaxes 8,469,062.01 8,615,824.18
Selling expenses 49,793,405.07 46,943,707.03
Administrative expenses 58,396,362.95 61,813,542.09
R&D expenses 57,120,477.94 51,443,153.79
Finance costs -14,313,725.75 -11,649,905.19
Of which: Interest expense 724,124.16 479,941.76
Interest revenue 6,311,962.49 5,835,960.62
Add: Other income 3,261,776.00 2,276,139.00
Profit/loss on investment (“-” for loss) 14,057,599.65 9,744,079.99
Including: Share of profit in associates and joint ventures
Profit/loss on fair value changes (“-” means loss) -9,122,411.00 -7,781,000.00
Asset impairment loss (“-” for loss) -2,312,972.35 -12,648,743.40
Income arising from disposal of assets (“-” means loss) 63,553,375.02 368,732.74
3. Operating profit (“-” for loss) 145,717,620.80 -12,403,166.27
Add: Non-operating income 26,875,443.46 3,104,942.74
Less: Non-operating expense 77,938.25 57,120.31
4. Profit before tax (“-” for loss) 172,515,126.01 -9,355,343.84
Less: Income tax expense 37,524,398.17 -271,427.47
5. Net profit (“-” for net loss) 134,990,727.84 -9,083,916.37
5.1 Classified by operating continuity
5.1.1 Net profit from going concern (“-” means net loss) 134,990,727.84 -9,083,916.37
5.1.2 Net profit from discontinued operations (“-” means net
loss)
5.2 Classified by ownership
5.2.1 Minority shareholders’ income (“-” means net loss) 52,782,258.76 -4,166,095.30
5.2.2 Net profit attributable to owners of the Company (“-”
82,208,469.08 -4,917,821.07
means net loss)
6. After-tax net amount of other composite income 2,928,662.19 2,245,532.55
Attributable to owners of the Company as the parent 2,196,496.64 1,684,149.41
6.1 Other composite income that will not be reclassified to
profit or loss
6.1.1 Changes in net liabilities or assets caused by
21
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Q1~Q3 2019 Q1~Q3 2018
remeasurements on defined benefit pension schemes
6.1.2 Share of other composite income of investees that will
not be reclassified to profit or loss under equity method
6.2 Other composite income that will be reclassified to profit or
2,196,496.64 1,684,149.41
loss
6.2.1 Share of other composite income of investees that will
be reclassified to profit or loss under equity method
6.2.2 Gain/Loss on changes in fair value of available-for-sale
financial assets
6.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale financial assets
6.2.4 Effective gain/loss on cash flow hedges
6.2.5 Differences arising from translation of foreign
2,196,496.64 1,684,149.41
currency-denominated financial statements
6.2.6 Other
Attributable to minority interests 732,165.55 561,383.14
7. Total composite income 137,919,390.03 -6,838,383.82
Attributable to shareholders of the Company 84,404,965.72 -3,233,671.66
Attributable to Minority interests 53,514,424.31 -3,604,712.16
8. Earnings per share
8.1 Basic earnings per share 0.44 -0.03
8.2 Diluted earnings per share 0.44 -0.03
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Pan Zhirong Chief of the accounting work: Wu Jianhua Chief of the accounting organ: Wu Jianhua
22
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
6. Income statement of the Company for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Operating revenues 58,486,701.87 84,995,033.15
Less: Operating costs 46,102,120.70 68,390,679.44
Taxes and surtaxes 1,360,261.86 2,009,123.01
Selling expenses 3,388,320.67 5,250,666.63
Administrative expenses 4,343,364.16 2,963,224.44
R&D expenses
Finance costs -60,232.02 134,373.75
Of which: Interest expense
Interest revenue 110,810.12 84,858.87
Add: Other income
Profit/loss on investment (“-” for loss) 25,443,358.87 33,547,555.83
Including: Share of profit in associates and joint ventures
Profit/loss on fair value changes (“-” means loss)
Asset impairment loss (“-” for loss) -1,898,411.25 -3,061,250.18
Income arising from disposal of assets (“-” means loss)
2. Operating profit (“-” for loss) 26,897,814.12 36,733,271.53
Add: Non-operating income 704,385.14 1,170,280.21
Less: Non-operating expense 4,632.00
3. Profit before tax (“-” for loss) 27,602,199.26 37,898,919.74
Less: Income tax expense 2,472,965.18 -570,628.51
4. Net profit (“-” for net loss) 25,129,234.08 38,469,548.25
4.1 Net profit from going concern (“-” for net loss) 25,129,234.08 38,469,548.25
4.2 Net profit from discontinued operations (“-” for net loss)
5. After-tax net amount of other composite income
5.1 Other composite income that will not be reclassified to
profit or loss
5.1.1 Changes in net liabilities or assets caused by
remeasurements on defined benefit pension schemes
5.1.2 Share of other composite income of investees that will
not be reclassified to profit or loss under equity method
5.2 Other composite income that will be reclassified to profit or
loss
5.2.1 Share of other composite income of investees that will
be reclassified to profit or loss under equity method
5.2.2 Gain/Loss on changes in fair value of available-for-sale
financial assets
5.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale financial assets
5.2.4 Effective gain/loss on cash flow hedges
23
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Item Q1~Q3 2019 Q1~Q3 2018
5.2.5 Differences arising from translation of foreign
currency-denominated financial statements
5.2.6 Other
6. Total composite income 25,129,234.08 38,469,548.25
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Pan Zhirong Chief of the accounting work: Wu Jianhua Chief of the accounting organ: Wu Jianhua
24
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
7. Consolidated cash flow statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Operating cash flow:
Cash received from sale of commodities and rendering of service 1,424,898,676.41 1,194,143,782.69
Tax refunds received 127,264,387.82 126,976,317.46
Other operating cash received 75,454,522.56 46,817,557.41
Subtotal of operating cash inflow 1,627,617,586.79 1,367,937,657.56
Cash paid for goods and services 1,180,739,622.69 1,066,998,861.67
Cash paid to and for employees 212,717,958.32 199,588,889.06
Taxes and fares paid 18,121,099.06 9,802,696.58
Other cash payment relating to operating activities 165,635,589.75 157,030,079.01
Subtotal of operating cash outflow 1,577,214,269.82 1,433,420,526.32
Net operating cash flow 50,403,316.97 -65,482,868.76
2. Investment cash flow:
Cash received from retraction of investments 494,561,696.08 292,157,440.00
Cash received from return on investments 16,543,185.85 10,800,555.44
Net cash received from disposal of fixed assets, intangible assets and
67,245,069.02 463,696.00
other long-term assets
Net cash received from disposal of subsidiaries or other business units
Other cash received relating to investment activities 110,758,658.06 539,417,500.00
Subtotal of investment cash inflow 689,108,609.01 842,839,191.44
Cash paid to acquire fixed assets, intangible assets and other long-term
53,991,936.51 42,726,408.44
assets
Cash paid for investment 467,069,315.47 370,000,000.00
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investment activities 268,406,368.05 686,611,745.27
Subtotal of investment cash outflow 789,467,620.03 1,099,338,153.71
Net investment cash flow -100,359,011.02 -256,498,962.27
3. Financing cash flow:
Cash received from capital contributions
Including: Cash received from minority shareholder investments by
subsidiaries
Cash received as borrowings 50,375,683.07 103,479,312.51
Other financing cash received 14,000,000.00 2,252,250.08
Subtotal of financing cash inflow 64,375,683.07 105,731,562.59
Repayment of borrowings 47,834,093.98 29,726,823.30
Cash paid for interest expenses and distribution of dividends or profit 16,312,030.75 26,407,227.20
Including: Dividends or profit paid by subsidiaries to minority
8,481,119.62 11,182,518.60
shareholders
Other cash payments relating to financing activities 10,800,000.00 1,126,125.04
Subtotal of financing cash outflow 74,946,124.73 57,260,175.54
Net financing cash flow -10,570,441.66 48,471,387.05
4. Effect of foreign exchange rate changes on cash and cash equivalents 147,631.12 -3,207,571.28
5. Net increase in cash and cash equivalents -60,378,504.59 -276,718,015.26
Add: Opening balance of cash and cash equivalents 448,492,295.47 564,381,960.88
6. Closing balance of cash and cash equivalents 388,113,790.88 287,663,945.62
Legal representative: Pan Zhirong Chief of the accounting work: Wu Jianhua Chief of the accounting organ: Wu Jianhua
25
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
8. Cash flow statement of the Company for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Operating cash flow:
Cash received from sale of commodities and rendering of service 38,846,898.64 47,407,867.79
Tax refunds received
Other operating cash received 266,337,599.24 39,883,542.53
Subtotal of operating cash inflow 305,184,497.88 87,291,410.32
Cash paid for goods and services 42,831,095.70 48,924,317.09
Cash paid to and for employees 2,292,491.54 3,300,271.47
Taxes and fares paid 4,708,705.29 5,105,270.66
Other operating cash payments 271,128,744.36 46,288,076.30
Subtotal of operating cash outflow 320,961,036.89 103,617,935.52
Net operating cash flow -15,776,539.01 -16,326,525.20
2. Investment cash flow:
Cash received from retraction of investments
Cash received from return on investments 25,443,358.87 33,547,555.83
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 25,443,358.87 33,547,555.83
Cash paid to acquire fixed assets, intangible assets and other long-term
145,897.00
assets
Cash paid for investment 1,500,000.00
Net cash paid to acquire subsidiaries and other business units
Other investment cash payments
Subtotal of investment cash outflow 1,645,897.00 0.00
Net investment cash flow 23,797,461.87 33,547,555.83
3. Financing cash flow:
Cash received from capital contributions
Cash received as borrowings
Other financing cash received
Subtotal of financing cash inflow 0.00 0.00
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or profit 7,415,667.20 14,831,334.40
Other cash payments relating to financing activities
Subtotal of financing cash outflow 7,415,667.20 14,831,334.40
Net financing cash flow -7,415,667.20 -14,831,334.40
4. Effect of foreign exchange rate changes on cash and cash equivalents -36,232.93 -171,821.03
5. Net increase in cash and cash equivalents 569,022.73 2,217,875.20
Add: Opening balance of cash and cash equivalents 6,985,345.44 5,342,389.95
6. Closing balance of cash and cash equivalents 7,554,368.17 7,560,265.15
Legal representative: Pan Zhirong Chief of the accounting work: Wu Jianhua Chief of the accounting organ: Wu Jianhua
26
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
II Adjustments to the Financial Statements
1. Adjustments to the financial statements at the beginning of the execution of any New Standards
Governing Financial Instruments, Revenue or Leases from 2019
√ Applicable □ Not applicable
Retroactive restatement of consolidated balance sheet
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD. Unit: RMB
Item 1 January 2019 31 December 2018 Adjusted
Current assets:
Monetary funds 469,692,295.47 469,692,295.47
Financial assets measured at fair value with fair value
changes included in the profit and loss for the Reporting 1,440,700.00 1,440,700.00
Period
Derivative financial assets
Notes and accounts receivable 282,087,350.72 280,796,130.89 1,291,219.83
Of which: Notes receivable 200,000.00 200,000.00
Accounts receivable 281,887,350.72 280,596,130.89 1,291,219.83
Accounts paid in advance 2,668,796.33 2,668,796.33
Other accounts receivable 29,944,042.47 29,944,042.47
Of which: Interest receivable
Dividends receivable
Inventories 243,262,500.58 243,262,500.58
Assets held for sale 4,311,436.92 4,311,436.92
Non-current assets due within one year
Other current assets 527,497,484.82 527,497,484.82
Total current assets 1,560,904,607.31 1,559,613,387.48 1,291,219.83
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
Investment property 25,014,648.31 25,014,648.31
Fixed assets 191,073,302.46 191,073,302.46
Construction in progress 895,756.17 895,756.17
Productive living assets
Oil-gas assets
Intangible assets 27,771,236.03 27,771,236.03
R&D expense
Goodwill
Long-term deferred expenses 8,058,867.12 8,058,867.12
Deferred income tax assets 26,461,242.31 26,552,328.43 -91,086.12
Other non-current assets 3,495,224.64 3,495,224.64
Total non-current assets 282,810,277.04 282,901,363.16 -91,086.12
Total assets 1,843,714,884.35 1,842,514,750.64 1,200,133.71
27
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Retroactive restatement of consolidated balance sheet (Continued)
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD. Unit: RMB
Item 1 January 2019 31 December 2018 Adjusted
Current liabilities:
Short-term borrowings 10,432,044.21 10,432,044.21
Financial liabilities measured at fair value with fair value
changes included in the profit and loss for the Reporting Period
Derivative financial liabilities
Notes and accounts payable 672,895,647.66 672,895,647.66
Accounts received in advance 9,747,158.90 9,747,158.90
Payroll payable 48,587,140.78 48,587,140.78
Taxes and fares payable 3,768,531.07 3,768,531.07
Other accounts payable 52,818,204.91 52,818,204.91
Of which: Interest payable 23,919.09 23,919.09
Dividends payable
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 798,248,727.53 798,248,727.53
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable 361,923.23 361,923.23
Estimated liabilities
Deferred income
Deferred income tax liabilities 27,505,224.10 27,505,224.10
Other non-current liabilities
Total non-current liabilities 27,867,147.33 27,867,147.33
Total liabilities 826,115,874.86 826,115,874.86
Shareholders’ 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 5,933,729.81 5,924,132.67 9,597.14
Special reserves
Surplus reserves 37,770,482.76 37,804,354.59 -33,871.83
Provisions for general risks
Retained profit 123,712,246.71 122,872,551.30 839,695.41
Total equity attributable to shareholders of the Company 649,617,105.07 648,801,684.35 815,420.72
Minority interests 367,981,904.42 367,597,191.43 384,712.99
Total shareholders’ equity 1,017,599,009.49 1,016,398,875.78 1,200,133.71
Total liabilities and shareholders’ equity 1,843,714,884.35 1,842,514,750.64 1,200,133.71
28
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Retroactive restatement of balance sheet
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD. Unit: RMB
Item 1 January 2019 31 December 2018 Adjusted
Current assets:
Monetary funds 6,985,345.44 6,985,345.44
Financial assets measured at fair value with fair value
changes included in the profit and loss for the Reporting Period
Derivative financial assets
Notes and accounts receivable 15,992,258.57 16,443,882.91 -451,624.34
Of which: Notes receivable 200,000.00 200,000.00
Accounts receivable 15,792,258.57 16,243,882.91 -451,624.34
Accounts paid in advance 260,472.55 260,472.55
Other accounts receivable 2,213,373.51 2,213,373.51
Of which: Interest receivable
Dividends receivable
Inventories 9,339,180.06 9,339,180.06
Assets held for sale
Non-current assets due within one year
Other current assets 381,431.15 381,431.15
Total current assets 35,172,061.28 35,623,685.62 -451,624.34
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 921,914,701.56 921,914,701.56
Investment property 29,863,349.12 29,863,349.12
Fixed assets 1,189,309.65 1,189,309.65
Construction in progress
Productive living assets
Oil-gas assets
Intangible assets 29,249.99 29,249.99
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 11,059,766.09 10,946,860.01 112,906.08
Other non-current assets 53,879.31 53,879.31
29
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Total non-current assets 964,150,255.72 964,037,349.64 112,906.08
Total assets 999,322,317.00 999,661,035.26 -338,718.26
30
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Retroactive restatement of balance sheet (Continued)
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD. Unit: RMB
Item 1 January 2019 31 December 2018 Adjusted
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 and accounts payable 58,463,830.39 58,463,830.39
Accounts received in advance 1,708,795.17 1,708,795.17
Payroll payable 5,338,618.00 5,338,618.00
Taxes and fares payable 666,695.14 666,695.14
Other accounts payable 262,786,311.87 262,786,311.87
Of which: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 328,964,250.57 328,964,250.57
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 328,964,250.57 328,964,250.57
Shareholders’ 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 37,770,482.76 37,804,354.59 -33,871.83
31
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Item 1 January 2019 31 December 2018 Adjusted
Provisions for general risks
Retained profit 175,705,613.85 176,010,460.28 -304,846.43
Total shareholders’ equity 670,358,066.43 670,696,784.69 -338,718.26
Total liabilities and shareholders’ equity 999,322,317.00 999,661,035.26 -338,718.26
32
Report for the Third Quarter of 2019 of Tsann Kuen (China) Enterprise Co., Ltd.
Notes for adjustment:
According to the revised and printed Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
Financial Instruments, Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets, Accounting Standards
for Business Enterprises No. 24 – Hedging Accounting, and Accounting Standards for Business Enterprises No. 37 – Presentation of
Financial Instruments issued by Ministry of Finance in 2017, enterprises listed domestically shall implement it from 1 January 2019.
The Company shall classify and measure financial instruments on implementation date of the standards in accordance with the
regulations. No adjustment is needed if the previous comparative data of financial statements are inconsistent with the requirements
of the standards. The balance between the original carrying value of financial instruments and the new carrying value on
implementation date of the standards shall recorded into the items of beginning retained earnings, other comprehensive income and
other items of financial statements during the reporting period of implementation date of the standards.
The Company shall change withdrawal method of accounts receivable impairment from “incurred loss method” to “expected credit
loss method” in order to make provision for financial assets impairment more timely and sufficiently, revealing and controlling credit
risks of financial assets.
2. Retrospective restatement of previous comparative data due to the execution of any New Standards
Governing Financial Instruments or Leases from 2019
□ Applicable√ Not applicable
III Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is not audited.
33
