Report for the First Quarter of 2012 of Hubei Sanonda Co., Ltd.
HUBEI SANONDA CO., LTD.
REPORT FOR THE FIRST QUARTER OF 2012
§1 Important Notes
1.1 The Board of Directors, the Supervisory Committee as well as directors, supervisors and senior
executives of Hubei Sanonda Co., Ltd. (hereinafter referred to as “the Company”) guarantee that
this report does not contain any false information, misleading statement or material omission and
will take individual and/or joint liabilities for the factuality, accuracy and completeness of this
report.
1.2 Financial statements for the first quarter of 2012 have not been audited by an accounting firm.
1.3 Mr. Li Zuorong, the company principal, and Mr. He Xuesong, the principal of the accounting
work and the person-in-charge of the accounting department (the accounting principal), hereby
confirm that the financial statements enclosed in the quarterly report is true and complete.
[English translation for reference only. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.]
§2 Company Profile
2.1 Main accounting data and financial indices
Unit: RMB Yuan
31 Mar. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (Yuan) 2,526,612,713.27 2,292,650,234.81 10.20%
Owners’ equity attributable to shareholders of the
1,172,692,028.08 1,156,347,732.27 1.41%
Company (Yuan)
Share capital (share) 593,923,220.00 593,923,220.00 0.00%
Net assets per share attributable to shareholders
1.97 1.95 1.03%
of the Company (Yuan/share)
Jan.-Mar. 2012 Jan.-Mar. 2011 Increase/decrease (%)
Gross revenues (Yuan) 501,283,492.34 465,889,677.27 7.60%
Net profit attributable to shareholders of the
14,030,342.75 8,227,439.93 70.53%
Company (Yuan)
Net cash flows from operating activities (Yuan) -11,945,307.62 -49,561,364.57 75.90%
Net cash flows per share from operating
-0.02 -0.08 75.00%
activities (Yuan/share)
Basic EPS (Yuan/share) 0.0236 0.0139 69.78%
Diluted EPS (Yuan/share) 0.0236 0.0139 69.78%
Weighted average ROA (%) 1.20% 0.73% 0.47%
Weighted average ROA after deducting
1.22% 1.17% 0.05%
non-recurring gains and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
From the year-begin to the
Items of non-recurring gains and losses Notes (if applicable)
period-end
Gains and losses on non-current asset disposal -112,327.29
Other non-operating incomes and expenses -58,752.94
Income tax effects -9,556.17
Minority interests effects 8,081.74
Total -172,554.66 -
1
Report for the First Quarter of 2012 of Hubei Sanonda Co., Ltd.
2.2 Total number of shareholders and shares held by the top ten shareholders not subject to trading
moratorium at the end of the reporting period
Unit: share
Total number of shareholders at the end of the
75,615, of which the total number of A-share holders being 51,395
reporting period
Shares held by the top ten shareholders not subject to trading moratorium
Shares not subject to trading moratorium
Full name of shareholder Type of share
held at the period-end
Sanonda Group Corporation 118,887,202 RMB ordinary shares
State-owned Assets Administration Bureau of
4,169,266 RMB ordinary shares
Qichun County
China Merchants Securities (HK) Co., Ltd. 3,040,807 Domestically listed foreign shares
Zhongrong International Trust Co.,
2,665,300 RMB ordinary shares
Ltd.—Extraordinary Structuring No. 5
Jingzhou Shashi District Union Rural Credit
2,500,000 RMB ordinary shares
Cooperation
China Opportunities H-B Fund 2,299,911 Domestically listed foreign shares
Guotai Junan Securities (Hong Kong) Limited 1,876,691 Domestically listed foreign shares
Chen Qiaoling 1,390,830 RMB ordinary shares
Sun Long 1,299,295 RMB ordinary shares
Liu Guocheng 1,214,000 Domestically listed foreign shares
§3 Significant Events
3.1 Significant changes in main accounting statement items and financial indicators as well as
reasons for these changes
√Applicable □Non-applicable
31 Mar. 2012 31 Dec. 2011
Financial (RMB Ten (RMB Ten
thousand) thousand) Increase/decrease
statement Main reasons for change
(%)
items (Jan.-Mar.
(Jan.-Mar. 2011)
2012)
Monetary
31,470 21,959 43.31% Increase of short-term borrowings
funds
Notes
2,123 3668 -42.12% Notes were adopted more often in settlement.
receivable
Sales income increased and settlement methods with recourse
Accounts
19,536 10,622 83.92% were adopted in most export transactions, which led to longer
receivable
settlement periods.
Prepayments 3,735 1,537 143.01% More prepayments for raw materials
Short-term Increase of capital needs for production and technical
48,208 29,314 64.45%
borrowings innovation
Accounts More accounts payable for raw materials and construction
20,338 12,264 65.83%
payable projects
Accounts
received in 3,524 5,496 -35.88% Some customers took delivery of goods.
advance
Payroll
647 1,166 -44.51% Bonuses for last year were distributed in the reporting period.
payable
Taxes and
fares -2,838 -2,041 39.05% Input VAT to be deducted increased.
payable
2
Report for the First Quarter of 2012 of Hubei Sanonda Co., Ltd.
Net profit
attributable
to owners of 1,403 823 70.47% Sales income increased and period expenses decreased.
the
Company
3.2 Progress of significant events as well as their influence and solutions
3.2.1 Non-standard audit opinion
□Applicable √Inapplicable
3.2.2 The Company provides funds for the controlling shareholder or its related parties or provides
external guarantees in violation of the prescribed procedure
□Applicable √Inapplicable
3.2.3 Significant contracts signed and executed concerning routine operation
□Applicable √Inapplicable
3.2.4 Other
□Applicable √Inapplicable
3.3 Commitments made by the Company, its shareholders and actual controller
Commitments made by the Company, its directors, supervisors, senior executives, shareholders
holding over 5% of the Company’s shares, actual controller and other related parties in the reporting
period, or such commitments carried down into the reporting period
□Applicable √Inapplicable
3.4 Warnings of possible loss or large-margin year-on-year change of the accumulative net profit
made during the period from the beginning of the year to the end of the next reporting period
according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities investments
□Applicable √Inapplicable
3.5.2 Researches, interviews and visits received in the reporting period
Main discussion and materials
Time Place Way of reception Type of visitor Visitor
provided by the Company
Asked about reasons for the
13 Feb. 2012 The Company By telephone Individual Individual investor
Company’s share suspension
Asked about reasons for the
14 Feb. 2012 The Company By telephone Individual Individual investor
Company’s share suspension
Asked if the share trading
7 Mar. 2012 The Company By telephone Individual Individual investor
resumption would be put off
Asked if the share trading
8 Mar. 2012 The Company By telephone Individual Individual investor
resumption would be put off
Asked if the share trading could
19 Mar. 2012 The Company By telephone Individual Individual investor resume on time before 9 Apr.
2012
3.6 Derivative investments
□Applicable √Inapplicable
3.6.1 Derivative investments held at the end of the reporting period
□Applicable √Inapplicable
§4 Attachments
4.1 Balance sheet
Prepared by Hubei Sanonda Co., Ltd 31 Mar. 2012 Unit: RMB Yuan
Items Closing balance Opening balance
3
Report for the First Quarter of 2012 of Hubei Sanonda Co., Ltd.
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 314,703,200.19 252,288,216.75 219,587,687.99 178,056,420.12
Settlement reserves
Lendings to banks and other
financial institutions
Transactional financial assets
Notes receivable 21,232,092.42 18,898,366.42 36,684,056.23 35,470,074.23
Accounts receivable 195,355,976.61 187,617,015.61 106,218,693.29 107,116,214.14
Accounts paid in advance 37,347,338.79 25,169,787.80 15,366,338.39 19,942,535.80
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable 650,000.00
Other accounts receivable 27,736,631.09 158,401,485.54 24,413,841.54 139,147,365.19
Financial assets purchased
under agreements to resell
Inventories 344,643,389.54 309,828,128.46 297,952,963.89 249,816,677.70
Non-current assets due within 1
year
Other current assets 14,374.73
Total current assets 941,018,628.64 952,853,000.58 700,237,956.06 729,549,287.18
Non-current assets:
Entrusted loans and advances
granted
Available-for-sale financial
assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 9,153,782.63 76,768,711.36 9,153,782.63 76,768,711.36
Investing property 4,635,212.50 4,635,212.50 4,635,212.50 4,635,212.50
Fixed assets 1,081,505,356.25 1,043,993,046.75 1,114,276,784.03 1,075,433,427.78
Construction in progress 330,859,645.29 205,924,308.08 303,864,055.51 168,798,220.23
Engineering materials
Disposal of fixed assets -11,320.74 -11,320.74
Production biological assets
Oil-gas assets
Intangible assets 146,422,116.83 131,826,471.89 147,453,152.21 132,784,006.82
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 13,029,291.87 8,852,524.81 13,029,291.87 8,852,524.81
Other non-current assets
Total of non-current assets 1,585,594,084.63 1,471,988,954.65 1,592,412,278.75 1,467,272,103.50
Total assets 2,526,612,713.27 2,424,841,955.23 2,292,650,234.81 2,196,821,390.68
Current liabilities:
Short-term borrowings 482,075,626.29 463,500,000.00 293,139,068.38 279,000,000.00
Borrowings from Central Bank
4
Report for the First Quarter of 2012 of Hubei Sanonda Co., Ltd.
Customer bank deposits and
due to banks and other financial
institutions
Borrowings from banks and
other financial institutions
Transactional financial
liabilities
Notes payable
Accounts payable 203,380,844.99 177,155,539.20 122,637,168.06 101,223,780.57
Accounts received in advance 35,235,523.00 24,179,227.87 54,962,481.73 32,554,691.41
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
6,473,491.43 5,602,399.87 11,657,468.95 8,669,946.00
payable
Tax payable -28,377,005.38 -9,067,192.70 -20,410,811.16 -1,071,376.94
Interest payable
Dividend payable 349,463.30 349,463.30 349,463.30 349,463.30
Other accounts payable 52,729,797.11 33,798,255.53 42,034,152.27 34,105,455.15
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting
underwriting of securities
Non-current liabilities due
96,990,000.00 96,990,000.00 96,990,000.00 96,990,000.00
within 1 year
Other current liabilities
Total current liabilities 848,857,740.74 792,507,693.07 601,358,991.53 551,821,959.49
Non-current liabilities:
Long-term borrowings 477,560,000.00 477,560,000.00 507,560,000.00 507,560,000.00
Bonds payable
Long-term payables 650,000.00 650,000.00 650,000.00 650,000.00
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 17,532,436.98 7,947,777.78 17,614,680.98 7,947,777.78
Total non-current liabilities 495,742,436.98 486,157,777.78 525,824,680.98 516,157,777.78
Total liabilities 1,344,600,177.72 1,278,665,470.85 1,127,183,672.51 1,067,979,737.27
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share
593,923,220.00 593,923,220.00 593,923,220.00 593,923,220.00
capital)
Capital reserves 266,649,062.72 263,799,837.18 266,649,062.72 263,799,837.18
Less: Treasury stock
Specific reserves 20,160,967.92 14,752,298.34 17,847,014.86 12,647,237.00
Surplus reserves 80,383,814.33 80,383,814.33 80,383,814.33 80,383,814.33
Provisions for general risks
Retained profits 211,574,963.11 193,317,314.53 197,544,620.36 178,087,544.90
Foreign exchange difference
Total equity attributable to owners
1,172,692,028.08 1,146,176,484.38 1,156,347,732.27 1,128,841,653.41
of the Company
Minority interests 9,320,507.47 9,118,830.03
5
Report for the First Quarter of 2012 of Hubei Sanonda Co., Ltd.
Total owners’ equity 1,182,012,535.55 1,146,176,484.38 1,165,466,562.30 1,128,841,653.41
Total liabilities and owners’
2,526,612,713.27 2,424,841,955.23 2,292,650,234.81 2,196,821,390.68
equity
4.2 Income statement
Prepared by Hubei Sanonda Co., Ltd Jan.-Mar. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 501,283,492.34 430,221,750.34 465,889,677.27 395,007,012.61
Including: Sales income 501,283,492.34 430,221,750.34 465,889,677.27 395,007,012.61
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 481,053,559.24 410,866,122.52 454,028,557.92 385,241,589.96
Including: Cost of sales 430,506,913.43 410,866,122.52 390,460,597.82 334,715,323.86
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate
165,454.85 52,666.59 240,340.66 13,465.09
charges
Selling and distribution
13,674,778.20 8,995,775.27 18,306,826.20 12,260,269.20
expenses
Administrative expenses 18,693,517.49 13,774,690.38 24,738,310.21 18,425,436.94
Financial expenses 18,388,588.93 18,281,440.07 20,282,483.03 19,827,094.87
Asset impairment loss -375,693.66 0.00
Add: Gain/(loss) from change in
0.00
fair value (“-” means loss)
Gain/(loss) from investment
650,000.00 0.00
(“-” means loss)
Including: share of profits in
0.00
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means
20,229,933.10 20,005,627.82 11,861,119.35 9,765,422.65
loss)
Add: non-operating income 214,065.01 214,065.01 11,857.45 11,055.39
Less: non-operating expense 385,145.24 130,000.00 250,694.71 17,016.00
Including: loss from non-current
asset disposal
IV. Total profit (“-” means loss) 20,058,852.87 20,089,692.83 11,622,282.09 9,759,462.04
Less: Income tax expense 5,627,801.00 4,859,923.20 2,969,117.41 2,439,865.51
V. Net profit (“-” means loss) 14,431,051.87 15,229,769.63 8,653,164.68 7,319,596.53
Attributable to owners of the
14,030,342.75 15,229,769.63 8,227,439.93 7,319,596.53
Company
Minority shareholders’
400,709.12 425,724.75
income
VI. Earnings per share
(I) basic earnings per share 0.0236 0.0139
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Report for the First Quarter of 2012 of Hubei Sanonda Co., Ltd.
(II) diluted earnings per
0.0236 0.0139
share
Ⅶ. Other comprehensive incomes
Ⅷ. Total comprehensive incomes 14,431,051.87 15,229,769.63 8,653,164.68 7,319,596.53
Attributable to owners of the
14,030,342.75 15,229,769.63 8,227,439.93 7,319,596.53
Company
Attributable to minority
400,709.12 425,724.75
shareholders
Where there were business combinations under the same control in the reporting period, the
combined parties achieved net profits of RMB 0.00 before the combinations.
4.3 Cash flow statement
Prepared by Hubei Sanonda Co., Ltd Jan.-Mar. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating
activities:
Cash received from sale of
commodities and rendering of 442,474,827.67 374,860,737.80 360,268,014.34 308,330,374.13
service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the
central bank
Net increase of funds borrowed
from other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from
reinsurance business
Net increase of deposits of
policy holders and investment
fund
Net increase of disposal of
tradable financial assets
Cash received from interest,
handling charges and
commissions
Net increase of borrowings
from banks and other financial
institutions
Net increase of funds in
repurchase business
Tax refunds received 332,537.15 10,820,609.29 8,276,893.65
Other cash received relating to
19,011,508.41 10,602,989.13 19,611,371.28 7,382,609.36
operating activities
Subtotal of cash inflows from
461,818,873.23 385,463,726.93 390,699,994.91 323,989,877.14
operating activities
Cash paid for goods and
406,038,847.03 350,866,822.74 362,922,240.74 305,714,437.34
services
Net increase of customer
lendings and advances
Net increase of funds deposited
in the central bank and amount
due from banks
Cash for paying claims of the
original insurance contracts
Cash for paying interest,
handling charges and
commissions
Cash for paying policy
dividends
7
Report for the First Quarter of 2012 of Hubei Sanonda Co., Ltd.
Cash paid to and for employees 36,059,024.14 31,210,809.97 33,006,626.20 25,718,272.05
Various taxes paid 3,526,215.79 2,005,145.47 4,720,603.50 2,374,793.75
Other cash payment relating to
28,140,093.89 34,048,505.08 39,611,889.04 46,575,382.92
operating activities
Subtotal of cash outflows from
473,764,180.85 418,131,283.26 440,261,359.48 380,382,886.06
operating activities
Net cash flows from operating
-11,945,307.62 -32,667,556.33 -49,561,364.57 -56,393,008.92
activities
II. Cash flows from investing
activities:
Cash received from disposal of
investments
Cash received from return on
investments
Net cash received from disposal
of fixed assets, intangible assets 12,000.00 12,000.00 400,698.67 69,346.00
and other long-term assets
Net cash received from disposal
of subsidiaries or other business
units
Other cash received relating
to investing activities
Subtotal of cash inflows
12,000.00 12,000.00 400,698.67 69,346.00
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 34,836,648.44 31,714,091.15 43,954,185.91 37,885,635.66
long-term assets
Cash paid for investment 26,017,144.00 26,017,144.00
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business
units
Other cash payments relating to
6,041.31 6,041.31
investing activities
Subtotal of cash outflows from
34,836,648.44 31,714,091.15 69,977,371.22 63,908,820.97
investing activities
Net cash flows from investing
-34,824,648.44 -31,702,091.15 -69,576,672.55 -63,839,474.97
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
205,870,771.04 186,000,000.00 286,927,494.37 250,000,000.00
borrowings
Cash received from issuance
of bonds
Other cash received relating to
44,277.17 1,048,754.42 974,860.65
financing activities
Subtotal of cash inflows from
205,915,048.21 186,000,000.00 287,976,248.79 250,974,860.65
financing activities
Repayment of borrowings 46,934,213.13 31,500,000.00 47,561,509.55 27,000,000.00
Cash paid for interest
expenses and distribution of 16,865,864.50 15,898,555.89 25,028,954.11 11,579,850.86
dividends or profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating
229,502.32 6,866,289.99 6,366,232.49
to financing activities
Sub-total of cash outflows from 64,029,579.95 47,398,555.89 79,456,753.65 44,946,083.35
8
Report for the First Quarter of 2012 of Hubei Sanonda Co., Ltd.
financing activities
Net cash flows from financing
141,885,468.26 138,601,444.11 208,519,495.14 206,028,777.30
activities
IV. Effect of foreign exchange
rate changes on cash and cash
equivalents
V. Net increase in cash and cash
95,115,512.20 74,231,796.63 89,381,458.02 85,796,293.41
equivalents
Add: Cash and cash
219,587,687.99 178,056,420.12 207,943,720.75 141,059,742.96
equivalents at the period-begin
VI. Cash and cash equivalents at
314,703,200.19 252,288,216.75 297,325,178.77 226,856,036.37
the period-end
4.4 Auditor’s report
Auditor’s opinion: un-audited
9
