Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
HUBEI SANONDA CO., LTD.
REPORT FOR THE FIRST QUARTER OF 2014
April 2014
1
Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Section I. Important Reminders
The Board of Directors, the Supervisory Committee, directors, supervisors and senior
management staff of Hubei Sanonda Co., Ltd. (hereinafter referred to as “the
Company”) warrant that the information carried in 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 have attended the board session for reviewing this report.
Li Zuorong, company principal, He Xuesong, chief of the accounting work and
concurrently chief of the accounting organ (chief of accounting), hereby confirm that
the financial statements enclosed 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 2014 of Hubei Sanonda Co., Ltd.
Section II. Financial Highlights & Change of Shareholders
I. Financial highlights
Does the Company adjust retrospectively or restate any accounting data of previous years?
□Yes √No
Jan.-Mar. 2014 Jan.-Mar. 2013 +/- (%)
Operating revenues (RMB Yuan) 801,641,627.55 628,575,842.14 27.53%
Net profit attributable to shareholders of
131,969,307.74 37,506,826.11 251.85%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 132,040,344.74 37,605,306.67 251.12%
losses (RMB Yuan)
Net cash flows from operating activities
146,981,733.82 65,245,967.68 125.27%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.2222 0.0632 251.58%
Diluted EPS (RMB Yuan/share) 0.2222 0.0632 251.58%
Weighted average ROE (%) 8.18% 2.94% 5.24%
31 Mar. 2014 31 Dec. 2013 +/- (%)
Total assets (RMB Yuan) 3,012,803,050.57 2,708,271,174.34 11.24%
Net assets attributable to shareholders of
1,679,954,489.67 1,546,189,571.66 8.65%
the Company (RMB Yuan)
Items and amounts of extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item 1 Jan. 2014-31 Mar. 2014 Explanation
Gain/loss on the disposal of non-current assets (including the
1,350.00
offset part of the asset impairment provisions)
Non-operating income and expense other than the above -96,516.00
Less: Income tax effects -23,791.50
Minority interests effects (after tax) -337.50
Total -71,037.00 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders
Unit: share
Total number of shareholders during
62,459 (including 46,167 A-share holders)
the reporting period
Shareholdings of top 10 shareholders
Number of Pledged or frozen shares
Nature of Shareholding Total shares held
Name of shareholder restricted shares Number of
shareholder percentage (%) at the period-end Status of shares
held shares
SANONDA GROUP State-owned
20.15% 119,687,202
CORPORATION legal person
Celsius Property Foreign legal
10.6% 62,950,659
B.V. person
Bank of China--
Harvest Theme
Selected Mixed Other 2.29% 13,622,041
Securities
Investment Fund
Domestic natural
Song Na 1.4% 8,313,728
person
STATE-OWNED
ASSETS
ADMINISTRATIO Nation 0.7% 4,169,266
N BUREAU OF
QICHUN COUNTY
CMBC-Chang Xin
Income-increasing
Other 0.55% 3,249,682
Dynamic Strategic
Fund
ICBC- Harvest
Theme New Power Other 0.45% 2,699,795
Stock Fund
Rural Credit
Cooperative
Association of Other 0.42% 2,500,000
Shashi District,
Jingzhou City
ICBC- Bosera Value
Selection Stock Other 0.42% 2,499,854
Fund
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Industrial and
Commercial Bank of
China—Soochow
Securities Selected
Other 0.35% 2,069,760
Mixed Harvest
Advance of Open
Securities
Investment Funds
Particulars about shares held by top 10 shareholders not subject to trading moratorium
Number of shares held not subject to trading Type of share
Name of shareholder
moratorium at the end of the period Type of share Number
RMB ordinary
SANONDA GROUP CORPORATION 119,687,202 119,687,202
share
Domestically
Celsius Property B.V. 62,950,659 listed foreign 62,950,659
share
Bank of China-- Harvest Theme
RMB ordinary
Selected Mixed Securities Investment 13,622,041 13,622,041
share
Fund
RMB ordinary
Song Na 8,313,728 8,313,728
share
STATE-OWNED ASSETS
RMB ordinary
ADMINISTRATION BUREAU OF 4,169,266 4,169,266
share
QICHUN COUNTY
CMBC-Chang Xin Income-increasing RMB ordinary
3,249,682 3,249,682
Dynamic Strategic Fund share
ICBC- Harvest Theme New Power RMB ordinary
2,699,795 2,699,795
Stock Fund share
Rural Credit Cooperative Association RMB ordinary
2,500,000 2,500,000
of Shashi District, Jingzhou City share
ICBC- Bosera Value Selection Stock RMB ordinary
2,499,854 2,499,854
Fund share
Industrial and Commercial Bank of
China—Soochow Securities Selected RMB ordinary
2,069,760 2,069,760
Mixed Harvest Advance of Open share
Securities Investment Funds
Sanonda Group Corporation and Celsius Property B.V. are related parties, and under the
Explanation on associated relationship same control of China National Chemical Agrochemical Corporation, and are
or/and persons acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of
Listed Companies. It is unknown whether the other shareholders are related parties or
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of
Listed Companies.
Particular about shareholder participate
in the securities lending and borrowing Inapplicable
business ( if any)( note 4)
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Section III. Significant Events
I. Significant changes of the major accounting statement items and financial indicators for the
reporting period, as well as the reasons for these changes
31 Mar.
31 Dec. 2013
2014 (RMB
(RMB Ten
Financial statement Ten
thousand) +/-% Main reasons for the change
items thousand)
(Jan.-Mar. (Jan.-Mar.
2014) 2013)
Notes receivable 1,669 4,110 -59.39% Settlements in note with customers increased.
Accounts receivable 28,916 20,917 38.25% Sales increased.
Prepayments 7,898 4,304 83.50% Prepayments for materials increased.
Other receivables 1,339 722 85.35% Export tax rebates receivable increased.
Construction in
31,722 23,449 35.28% Spending on construction projects increased.
progress
Notes payable 7,000 4,000 75.00% New notes payable
Accounts payable 22,721 15,604 45.61% The accounts to be paid for raw materials increased.
Accounts received in
4,544 7,944 -42.79% Advances from customers decreased.
advance
Payroll payable 1,744 2,533 -31.16% Remuneration was paid.
Other payables 5,699 3,454 64.96% The export expenses to be paid increased.
Other non-current
2,654 1,954 35.83% The specific-item funds were received.
liabilities
Administrative The sales income increased and the operating costs increased
3,022 2,272 33.01%
expenses accordingly.
Financial expenses 761 2,184 -65.16% The interest expenses decreased.
Income tax expenses 4,627 1,375 236.56% Total profit increased.
Net profit attributable
to owners of the 13,197 3,751 251.85% The sales income and the gross profit both increased.
Company
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
II. Progress of significant events and analysis & explanations on their influence and solutions
1. On Mar. 12 2014 and Apr. 15 2014, the Company disclosed Indicative Announcement on Planning
Restructure of the Controlling Shareholders and Announcement on the Shareholders Completing the
Restructure and Renaming.
2. On Mar. 27 2014，the Company disclosed Voluntary Information Disclosure Announcement on Intermediary
Institution’s Responsible Investigation to the Company, as of the announcement date, Intermediary institution
employed by China National Agrochemical Corporation and ADAMA Agricultural Solutions LTD. was
conducting the Responsible Investigation to the Company.
Website index to the disclosed
Overview of the significant event Date of disclosure
relevant interim report
Indicative Announcement on
Planning Restructure of the Mar. 12 2014 http://www.cninfo.com.cn
Controlling Shareholders
Voluntary Information Disclosure
Announcement on Intermediary
Mar. 27 2014 http://www.cninfo.com.cn
Institution’s Responsible
Investigation to the Company
Announcement on the Shareholders
Completing the Restructure and
Apr. 15 2014 http://www.cninfo.com.cn
Renaming.
III. Commitments made by the Company or any shareholder with a shareholding over 5% in
the reporting period or such commitments made in previous period and carried down into the
reporting period
Commitment Date of Period of
Commitment Contents of commitment Execution
maker commitment commitment
Commitments of share
- - - -
reform
I. Commitments on avoiding Up to the date of
horizontal competition: 1. excepting declaration of
Commitments made in the Company proposed conducting the report, the
acquisition report or in Celsius Property transaction may lead to competition commitments
7 Sep. 2013 Within 7 years
report on changes of B.V. and MAI in domestic trade with Shenzhen were being
equity NOPOSION Agrochemical Co.,Ltd. carried out and
disclosed in the B Shares Offer the committers
Acquisition Report of Hubei abided by the
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Sanonda CO., Ltd. The Company above
will take effective measures to commitments.
avoid the Company and its
controlling subsidiaries engaged in
the same or similar business with
Hubei Sanonda CO., Ltd. within the
territory.2. If the Company or its
controlling subsidiaries
domestically conduct related
business which form horizontal
competition with Hubei Sanonda
CO., Ltd. in future (including
related business of the Company
proposed conducting transaction
may lead to competition in domestic
trade with Shenzhen NOPOSION
Agrochemical Co.,Ltd. disclosed in
the B Shares Offer Acquisition
Report of Hubei Sanonda CO., Ltd.)
The Company will according to the
securities laws and regulations and
industry policy within 7 years or
when the management think the
condition is ripe to actively take
steps, gradually eliminate the
competition, the concrete measures
including but not limited to the
following one or more: fight for
internal assets reconstruction,
(including putting the business into
Hubei Sanonda CO., Ltd. or
operated through Hubei Sanonda
CO., Ltd. ) to adjust the industrial
plan and business structure, to
transform technology and to
upgrade products, to divide the
market so as to make each
corporation differ in the products
and its ultimate users, thus to avoid
and eliminate the current domestic
horizontal competition between the
Company’s controlling subsidiaries
and Sanonda.
Celsius Property II. Commitments on maintaining the 7 Sep. 2013 Long term Up to the date of
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
B.V. and MAI Company’s operation independence declaration of
and specify the related transaction: the report, the
1. After the complement of the commitments
tender offer, Sanonda will continues were being
to maintain complete purchase, carried out and
production and sales system, and to the committers
gain the independent intellectual abided by the
property. The Company and its above
direct or indirect controlling commitments.
shareholders and Sanonda of which
the personnel, assets, finance,
business and institutions will be
completely separated, and at the
same time maintain the operation
ability of Sanonda that
independently face to the China
agrochemical industry market. 2.
The Company will avoid and reduce
the related transactions with
Sanonda according to the
requirements stipulated by the laws,
regulations and other normative
documents; but for those related
transactions that are inevitable or
occur with reasonable cause, will
have to obey the just, fair and open
market principles. And to sign the
agreement according to the law and
to carry out legal program, and to
make sure not to harm the legal
interest of Sanonda and other
shareholders by related transaction
according to the Articles of
Association of Sanonda, the
relevant system about related
transaction and to conduct the duty
of information disclosure as well as
the approval process which
stipulated by the relevant
regulations."
I. Commitments on avoiding Up to the date of
China National
horizontal competition: 1. The declaration of
Chemical 7 Sep. 2013 Within 7 years
business of the Company’s the report, the
Corporation
subsidiaries-- Jiangsu Anpon commitments
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Electrochemical Co., Ltd., Anhui were being
Petroleum Chemical Group Co., carried out and
Ltd., Shangdong Dacheng the committers
Agrochemical Co., Ltd. and Jiamusi abided by the
Heilong Agrochemicals Co., Ltd., above
and Hunan Haohua Chemical Co., commitments.
Ltd. and its subsidiary had the same
or similar situations with the main
business of Sanonda, and aimed at
the domestic horizontal
competition, the Company
committed to gradually eliminate
such kind of horizontal competition
in the future and to fight for the
internal assets reconstruction, to
adjust the industrial plan and
business structure, to transform
technology and to upgrade products,
to divide the market so as to make
each corporation differ in the
products and its ultimate users
according to the securities laws and
regulations and industry policy
within 7 years, thus to eliminate the
current domestic horizontal
competition between the Company’s
controlling subsidiaries and
Sanonda. 2. Excepting the
competition situation disclosed in
the offer acquisition report, the
Company take effective measures to
avoid the Company and its
controlling subsidiaries ( excepting
Commitments respectively made in
acquisition report by Celsius
Property B.V. and MAI )’ new
increased business engaged in the
same or similar business with Hubei
Sanonda CO., Ltd. within the
territory in future. 3. If the
Company or its controlling
subsidiaries ( excepting
Commitments respectively made in
acquisition report by Celsius
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Property B.V. and MAI )
domestically conduct related
business which form horizontal
competition with Hubei Sanonda
CO., Ltd. in future, the Company
will actively take steps, gradually
eliminate the competition, the
concrete measures including but not
limited to fight for internal assets
reconstruction, (including putting
the business into Hubei Sanonda
CO., Ltd. or operated through Hubei
Sanonda CO., Ltd. ) to adjust the
industrial plan and business
structure, to transform technology
and to upgrade products, to divide
the market so as to make each
corporation differ in the products
and its ultimate users, thus to avoid
and eliminate the current domestic
horizontal competition between the
Company’s controlling subsidiaries
and Sanonda.
II. Commitments on maintaining the
Company’s operation independence
and specify the related transaction:
1. After the complement of the
tender offer, Sanonda will continues
to maintain complete purchase,
Up to the date of
production and sales system, and to
declaration of
gain the independent intellectual
the report, the
property. The Company and its
commitments
China National direct or indirect controlling
were being
Chemical shareholders and Sanonda of which 7 Sep. 2013 Long term
carried out and
Corporation the personnel, assets, finance,
the committers
business and institutions will be
abided by the
completely separated, and at the
above
same time maintain the operation
commitments.
ability of Sanonda that
independently face to the China
agrochemical industry market. 2.
The Company will avoid and reduce
the related transactions with
Sanonda according to the
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
requirements stipulated by the laws,
regulations and other normative
documents; but for those related
transactions that are inevitable or
occur with reasonable cause, will
have to obey the just, fair and open
market principles. And to sign the
agreement according to the law and
to carry out legal program, and to
make sure not to harm the legal
interest of Sanonda and other
shareholders by related transaction
according to the Articles of
Association of Sanonda, the
relevant system about related
transaction and to conduct the duty
of information disclosure as well as
the approval process which
stipulated by the relevant
regulations.
Commitments made at
the time of assets -
reorganization
Commitments made in
the initial public -
offering or refinancing
Commitments made
by the company to
-
other medium and
small shareholders
Executed timely or
Yes
not?
Detailed reason for
failing to execute and Inapplicable
the next plan (if any)
IV. Predict the operating results of Jan.-Jun. 2014
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin
to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable √ Inapplicable
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
V. Securities investments
Naught
Shareholdings in other listed companies
□ Applicable √ Inapplicable
VI. Investments in derivatives
Naught
VII. Researches, visits and interviews received in the reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided by the
Company
individual Individual The production and
operation situation of the
Jan.-Mar. 2014 The Company Individual investor
Company in the first
quarter
Proposal reviewed and
approved by the General
Meeting of Shareholder of
2013.
Mar. 28 2014 The Company Other Individual Individual investor
Information provided: the
Company’s public
disclosure periodic reports
etc.
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current assets:
Monetary funds 532,483,666.13 414,065,921.21
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable 16,690,727.06 41,103,985.15
Accounts receivable 289,163,084.27 209,166,447.16
Accounts paid in advance 78,983,520.88 43,042,028.26
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 13,390,548.20 7,224,391.05
Financial assets purchased under
agreements to resell
Inventories 294,131,578.91 258,274,457.88
Non-current assets due within 1 year
Other current assets
Total current assets 1,224,843,125.45 972,877,230.71
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets
Held-to-maturity investments
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Long-term accounts receivable
Long-term equity investment 9,153,782.63 9,153,782.63
Investing property 4,154,412.50 4,154,412.50
Fixed assets 1,286,985,782.25 1,324,222,385.03
Construction in progress 317,223,700.76 234,487,866.23
Engineering materials 4,225,311.96
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 139,457,144.87 137,371,149.10
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 13,375,390.15 12,619,948.14
Other non-current assets 13,384,400.00 13,384,400.00
Total of non-current assets 1,787,959,925.12 1,735,393,943.63
Total assets 3,012,803,050.57 2,708,271,174.34
Current liabilities:
Short-term borrowings 429,625,430.16 359,220,205.55
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 70,000,000.00 40,000,000.00
Accounts payable 227,213,985.00 156,037,973.10
Accounts received in advance 45,443,222.24 79,437,442.04
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 17,439,235.89 25,332,986.86
Tax payable 55,068,863.82 73,337,138.50
Interest payable
Dividend payable 250,000.00 250,000.00
Other accounts payable 56,985,692.75 34,544,608.36
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Non-current liabilities due within 1
57,390,000.00 77,390,000.00
year
Other current liabilities
Total current liabilities 959,416,429.86 845,550,354.41
Non-current liabilities:
Long-term borrowings 346,090,000.00 296,090,000.00
Bonds payable
Long-term payables 650,000.00 650,000.00
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 26,538,888.89 19,538,888.89
Total non-current liabilities 373,278,888.89 316,278,888.89
Total liabilities 1,332,695,318.75 1,161,829,243.30
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 593,923,220.00 593,923,220.00
Capital reserves 263,184,043.66 263,184,043.66
Less: Treasury stock
Specific reserves 17,854,898.98 16,059,288.71
Surplus reserves 126,334,248.31 126,334,248.31
Provisions for general risks
Retained profits 678,658,078.72 546,688,770.98
Foreign exchange difference
Total equity attributable to owners of
1,679,954,489.67 1,546,189,571.66
the Company
Minority interests 153,242.15 252,359.38
Total owners’ (or shareholders’) equity 1,680,107,731.82 1,546,441,931.04
Total liabilities and owners’ (or
3,012,803,050.57 2,708,271,174.34
shareholders’) equity
17
Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
2. Balance sheet of the Company
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 433,835,234.70 329,849,120.35
Transactional financial assets
Notes receivable 16,690,727.06 41,103,985.15
Accounts receivable 396,244,917.27 193,013,915.85
Accounts paid in advance 76,418,789.62 42,670,595.78
Interest receivable
Dividend receivable
Other accounts receivable 76,235,276.18 144,872,701.27
Inventories 290,006,965.83 254,766,534.37
Non-current assets due within 1 year
Other current assets
Total current assets 1,289,431,910.66 1,006,276,852.77
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 64,680,418.04 64,680,418.04
Investing property 4,154,412.50 4,154,412.50
Fixed assets 1,120,430,985.60 1,153,224,118.73
Construction in progress 316,499,151.43 234,487,866.23
Engineering materials 4,225,311.96
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 126,524,078.80 125,275,394.07
R&D expense
Goodwill
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Long-term deferred expenses
Deferred income tax assets 7,766,344.50 7,587,719.43
Other non-current assets 13,384,400.00 13,384,400.00
Total of non-current assets 1,657,665,102.83 1,602,794,329.00
Total assets 2,947,097,013.49 2,609,071,181.77
Current liabilities:
Short-term borrowings 355,000,000.00 283,000,000.00
Transactional financial liabilities
Notes payable 70,000,000.00 40,000,000.00
Accounts payable 223,966,751.11 151,132,431.37
Accounts received in advance 40,212,397.66 49,176,997.90
Employee’s compensation payable 17,419,833.27 22,813,584.24
Tax payable 68,343,008.16 87,016,104.58
Interest payable
Dividend payable 250,000.00 250,000.00
Other accounts payable 52,704,469.73 33,560,585.60
Non-current liabilities due within 1
57,390,000.00 77,390,000.00
year
Other current liabilities
Total current liabilities 885,286,459.93 744,339,703.69
Non-current liabilities:
Long-term borrowings 346,090,000.00 296,090,000.00
Bonds payable
Long-term payables 650,000.00 650,000.00
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 17,688,888.89 10,688,888.89
Total non-current liabilities 364,428,888.89 307,428,888.89
Total liabilities 1,249,715,348.82 1,051,768,592.58
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 593,923,220.00 593,923,220.00
Capital reserves 263,799,837.18 263,799,837.18
Less: Treasury stock
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Specific reserves 12,885,786.68 11,090,176.40
Surplus reserves 126,334,248.31 126,334,248.31
Provisions for general risks
Retained profits 700,438,572.50 562,155,107.30
Foreign exchange difference
Total owners’ (or shareholders’) equity 1,697,381,664.67 1,557,302,589.19
Total liabilities and owners’ (or
2,947,097,013.49 2,609,071,181.77
shareholders’) equity
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
3. Consolidated income statement
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Operating revenues 801,641,627.55 628,575,842.14
Including: Sales income 801,641,627.55 628,575,842.14
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 623,408,283.03 576,946,339.84
Including: Cost of sales 563,394,439.89 506,602,588.85
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 188,174.48 402,044.79
Selling and distribution expenses 18,980,495.62 21,190,162.30
Administrative expenses 30,218,260.55 22,719,543.58
Financial expenses 7,605,144.49 21,843,761.07
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Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Asset impairment loss 3,021,768.00 4,188,239.25
Add: Gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
means loss)
Including: share of profits in associates
and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 178,233,344.52 51,629,502.30
Add: non-operating income 17,582.58 63,994.04
Less: non-operating expense 112,748.58 217,001.61
Including: loss from
non-current asset disposal
IV. Total profit (“-” means loss) 178,138,178.52 51,476,494.73
Less: Income tax expense 46,267,988.02 13,747,521.88
V. Net profit (“-” means loss) 131,870,190.50 37,728,972.85
Including: Net profit achieved by
combined parties before the
combinations
Attributable to owners of the
131,969,307.74 37,506,826.11
Company
Minority shareholders’ income -99,117.24 222,146.74
VI. Earnings per share -- --
(I) Basic earnings per share 0.2222 0.0632
(II) Diluted earnings per share 0.2222 0.0632
Ⅶ. Other comprehensive incomes
Ⅷ. Total comprehensive incomes 131,870,190.50 37,728,972.85
Attributable to owners of the
131,969,307.74 37,506,826.11
Company
Attributable to minority
-99,117.24 222,146.74
shareholders
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
4. Income statement of the Company
Prepared by Hubei Sanonda Co., Ltd.
21
Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Operating revenues 788,008,058.96 628,377,392.08
Less: operating costs 554,927,275.87 514,509,248.40
Business taxes and surcharges 138,886.05 207,749.84
Distribution expenses 17,435,486.32 17,652,090.95
Administrative expenses 22,445,422.29 17,644,785.05
Financial costs 7,902,244.11 22,854,633.57
Impairment loss 714,500.25 2,937,009.44
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
650,000.00
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) 184,444,244.07 53,221,874.83
Add: non-business income 16,318.10 63,994.04
Less: non-business expense 82,608.58
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) 184,377,953.59 53,285,868.87
Less: income tax expense 46,094,488.39 13,158,967.22
IV. Net profit (“-” means loss) 138,283,465.20 40,126,901.65
V. Earnings per share -- --
(I) Basic earnings per share 0.2328 0.0676
(II) Diluted earnings per share 0.2328 0.0676
VI. Other comprehensive income
VII. Total comprehensive income 138,283,465.20 40,126,901.65
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
5. Consolidated cash flow statement
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Cash flows from operating activities:
22
Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Cash received from sale of
654,860,051.34 461,866,937.23
commodities and rendering of 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 intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received 12,188,773.44
Other cash received relating to
10,796,386.94 22,639,159.97
operating activities
Subtotal of cash inflows from operating
665,656,438.28 496,694,870.64
activities
Cash paid for goods and services 387,477,798.92 353,961,776.05
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
23
Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Cash paid to and for employees 37,293,744.46 40,393,253.97
Various taxes paid 58,061,768.24 5,248,030.22
Other cash payment relating to
35,841,392.84 31,845,842.72
operating activities
Subtotal of cash outflows from
518,674,704.46 431,448,902.96
operating activities
Net cash flows from operating activities 146,981,733.82 65,245,967.68
II. Cash flows from investing activities:
Cash received from withdrawal of
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other 1,350.00 30,000.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
1,350.00 30,000.00
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 118,199,901.92 32,929,759.71
assets
Cash paid for investment
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
118,199,901.92 32,929,759.71
investing activities
Net cash flows from investing activities -118,198,551.92 -32,899,759.71
III. Cash flows from financing
Activities:
Cash received from capital
contributions
Including: Cash received from
24
Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
minority shareholder investments by
subsidiaries
Cash received from borrowings 368,650,312.15 571,755,563.46
Cash received from issuance of
bonds
Other cash received relating to
4,000,000.00 51,311.94
financing activities
Subtotal of cash inflows from financing
372,650,312.15 571,806,875.40
activities
Repayment of borrowings 268,245,087.54 311,188,036.73
Cash paid for interest expenses and
10,770,661.59 14,163,250.57
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority shareholders
Other cash payments relating to
7,000,000.00
financing activities
Sub-total of cash outflows from
286,015,749.13 325,351,287.30
financing activities
Net cash flows from financing activities 86,634,563.02 246,455,588.10
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
115,417,744.92 278,801,796.07
equivalents
Add: Opening balance of cash and
410,065,921.21 175,181,365.77
cash equivalents
VI. Closing balance of cash and cash
525,483,666.13 453,983,161.84
equivalents
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
6. Cash flow statement of the Company
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Cash flows from operating activities:
Cash received from sale of
605,686,691.27 438,490,382.86
commodities and rendering of service
Tax refunds received 6,394,161.44
25
Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
Other cash received relating to
10,676,943.18 11,514,052.89
operating activities
Subtotal of cash inflows from operating
616,363,634.45 456,398,597.19
activities
Cash paid for goods and services 370,735,924.64 324,531,554.27
Cash paid to and for employees 33,225,209.07 33,866,593.96
Various taxes paid 57,149,977.21 2,706,248.66
Other cash payment relating to
27,449,948.92 18,048,258.77
operating activities
Subtotal of cash outflows from
488,561,059.84 379,152,655.66
operating activities
Net cash flows from operating activities 127,802,574.61 77,245,941.53
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other 1,350.00 30,000.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
1,350.00 30,000.00
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 116,332,310.92 31,836,938.56
assets
Cash paid for investment
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
116,332,310.92 31,836,938.56
investing activities
Net cash flows from investing activities -116,330,960.92 -31,806,938.56
III. Cash flows from financing
26
Report for the First Quarter of 2014 of Hubei Sanonda Co., Ltd.
activities:
Cash received from capital
contributions
Cash received from borrowings 300,000,000.00 468,000,000.00
Cash received from issuance of
bonds
Other cash received relating to
4,000,000.00
financing activities
Subtotal of cash inflows from financing
304,000,000.00 468,000,000.00
activities
Repayment of borrowings 198,000,000.00 272,560,000.00
Cash paid for interest expenses and
9,485,499.34 13,759,277.83
distribution of dividends or profit
Other cash payments relating to
7,000,000.00
financing activities
Sub-total of cash outflows from
214,485,499.34 286,319,277.83
financing activities
Net cash flows from financing activities 89,514,500.66 181,680,722.17
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
100,986,114.35 227,119,725.14
equivalents
Add: Opening balance of cash and
325,849,120.35 149,485,252.01
cash equivalents
VI. Closing balance of cash and cash
426,835,234.70 376,604,977.15
equivalents
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
II. Audit report
This report is not audited.
HUBEI SANONDA CO., LTD.
Legal representative: Li Zuorong
20 April 2014
27
