Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Hubei Sanonda Co., Ltd.
Report for the Third Quarter of 2014
October 2014
1
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
SectionI.ImportantReminders
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management
staff of Hubei Sanonda Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual,
accurate and complete without any false record, misleading statement or material omission. And they shall be
jointly and severally liable for that.
All directors attended the board session for reviewing this report.
Mr. Li Zuorong, company principal, and Mr. He Xuesong, chief of the accounting work and chief of the
accounting organ (chief of accounting), hereby confirm that the Financial Report enclosed in this report is 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 Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Section II. Financial Highlights & Change of Shareholders
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
30 Sept. 2014 31 Dec. 2013 Increase/decrease (%)
Total assets (RMB Yuan) 3,168,198,347.68 2,708,271,174.34 16.98%
Net assets attributable to
shareholders of the Company 1,951,680,600.58 1,546,189,571.66 26.23%
(RMB Yuan)
YoY increase/decrease YoY increase/decrease
Jul.-Sept. 2014 Jan.-Sept. 2014
(%) (%)
Operating revenues (RMB Yuan) 866,668,593.25 17.66% 2,566,950,017.93 13.77%
Net profit attributable to
shareholders of the Company 140,421,657.01 117.99% 428,828,254.14 123.48%
(RMB Yuan)
Net profit attributable to
shareholders of the Company after
139,244,260.83 114.30% 426,782,025.29 120.39%
extraordinary gains and losses
(RMB Yuan)
Net cash flows from operating
-- -- 592,089,710.76 1.39%
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.2364 117.88% 0.7220 123.46%
Diluted EPS (RMB Yuan/share) 0.2364 117.88% 0.7220 123.46%
Weighted average ROE (%) 7.40% 2.86% 24.55% 10.35%
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Item Amount as of Jan.-Sept. 2014 Note
Gains/losses on the disposal of non-current assets (including the
54,831.62
offset part of asset impairment provisions)
Government grants recognized in the current period, except for
those acquired in the ordinary course of business or granted at
2,842,744.44
certain quotas or amounts according to the country’s unified
standards
Other non-operating income and expenses than the above -158,479.48
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Less: Income tax effects 693,317.73
Minority interests effects (after tax) -450.00
Total 2,046,228.85 --
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
No such cases during the reporting period.
II. Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the
period-end
Unit: share
Total number of common
60,715 (of which the shareholders of A share were of 43,968)
shareholders at the period-end
Shareholdings of the top ten common shareholders
Number of Pledged or frozen shares
Name of Nature of Shareholding Number of the
restricted shares
shareholder shareholder percentage (%) shares held Status of shares Number of shares
held
Sanonda Group State-owned
20.15% 119,687,202 - - -
Co., Ltd. corporation
Celsius Property Foreign
10.60% 62,950,659 - - -
B.V. corporation
ICBC - Bosera
Selected Stock
Other 0.84% 5,001,417 - - -
Securities
Investment Fund
China Life Insura
nce Co., Ltd. –
Dividend - Person Other 0.77% 4,562,962 - - -
al bonus - 005L-
FH002 Shen
STATE-OWNED
ASSETS
ADMINISTRATIO
Nation 0.70% 4,169,266 - - -
N BUREAU OF
QICHUN
COUNTY
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Domestic
Shen Hefei 0.63% 3,768,445 - - -
individual
Foreign
NORGES BANK 0.44% 2,634,504 - - -
corporation
ICBC － Zhonghai
Energy Strategy
Other 0.40% 2,402,606 - - -
Hybrid Securities
Investment Fund
GUOTAI JUNAN
SECURITIES(HO Foreign
0.35% 2,105,816 - - -
NGKONG) corporation
LIMITED
Domestic
Xie Qingjun 0.35% 2,053,500 - - -
individual
Shareholdings of the top ten non-restricted common shareholders
Number of non-restricted common shares held at the Type of shares
Name of shareholder
period-end Type Number
RMB ordinary
Sanonda Group Co., Ltd. 119,687,202 119,687,202
share
Domestically
Celsius Property B.V. 62,950,659 listed foreign 62,950,659
share
ICBC - Bosera Selected Stock RMB ordinary
5,001,417 5,001,417
Securities Investment Fund share
China Life Insurance Co., Ltd. –
RMB ordinary
Dividend - Personal bonus - 005L- 4,562,962 4,562,962
share
FH002 Shen
STATE-OWNED ASSETS
RMB ordinary
ADMINISTRATION BUREAU OF 4,169,266 4,169,266
share
QICHUN COUNTY
RMB ordinary
Shen Hefei 3,768,445 3,768,445
share
Domestically
NORGES BANK 2,634,504 listed foreign 2,634,504
share
ICBC － Zhonghai Energy Strategy RMB ordinary
2,402,606 2,402,606
Hybrid Securities Investment Fund share
GUOTAI JUNAN Domestically
2,105,816 2,105,816
SECURITIES(HONGKONG) listed foreign
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
LIMITED share
Domestically
Xie Qingjun 2,053,500 listed foreign 2,053,500
share
STATE-OWNED ASSETS ADMINISTRATION BUREAU OF QICHUN COUNTY held
the shares of the Company on behalf of the country. Sanonda Group Corporation (now
Explanation on associated renamed as Jingzhou Sanonda Holdings Co., Ltd.) and Celsius Property B.V. (foreign
relationship or persons acting in shareholder, now renamed as ADAMA Celsius B.V.) are related parties, and under the same
concert among the above-mentioned control of China National Chemical Agrochemical Corporation, and are acting-in-concert
shareholders parties as prescribed in the Administrative Methods for Acquisition of Listed Companies. It
is unknown whether the other shareholders are related parties or acting-in-concert parties as
prescribed in the Administrative Methods for Acquisition of Listed Companies.
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carry out any agreed
buy-back in the reporting period?
□ Yes √ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred share holders at the
period-end
□ Applicable √ Inapplicable
Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting
period, as well as reasons for the changes
√ Applicable □ Inapplicable
(Unit: RMB Ten thousand)
Increase Increase/
Financial 31 Dec.
30 Sept. 2014 /decreas decrease Main reason for the change
statement item 2013
e (%)
Monetary funds 56,802 41,407 15,395 37.18% Sales inflows increased.
Notes Acceptance bills were adopted more often in
2,454 4,110 -1,656 -40.29%
receivable payment for our products.
The sales incomes at home and abroad both
Accounts increased. And settlement with recourse was
34,501 20,917 13,584 64.94%
receivable often adopted in export, resulting in a long
settlement period.
Prepayments 6,738 4,304 2,434 56.55% Prepayments for raw materials increased.
Other
2,712 722 1,990 275.62% Export rebates receivable increased.
receivables
Available-for-sa 915 915 Some long-term equity investments were
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
le financial restated under this item according to the
assets amended accounting standards.
Some long-term equity investments were
Long-term
restated as available-for-sale financial assets
equity 915 -915 -100.00%
according to the amended accounting
investments
standards.
Construction in
44,267 23,449 20,818 88.78% Inputs to construction increased.
progress
Short-term
24,500 35,922 -11,422 -31.80% More short-term borrowings were repaid.
borrowings
Notes payable 8,500 4000 4,500 112.50% New notes for paying for raw materials
Accounts
21,040 15604 5,436 34.84% Amounts to be paid to suppliers increased.
payable
Taxes and fares
11,812 7,334 4,478 61.06% The income tax to be paid increased.
payable
Accounts
received in 4,129 7,944 -3,815 -48.02% Advances from customers decreased.
advance
Non-current
Most of the long-term borrowings due within 1
liabilities due 749 7,739 -6,990 -90.32%
year were repaid.
within 1 year
Long-term
43,159 29,609 13,550 45.76% New long-term borrowings for projects
borrowings
Specialized
2,242 1,606 636 39.60% Security funds reserve increased.
reserves
Retained profits 94,582 54,669 39,913 73.01% Profits increased.
Increase Increase/
Financial Jan.-Sept.
Jan.-Sept. 2014 /decreas decrease Main reason for the change
statement item 2013
e (%)
Business tax
713 260 453 174.23% Surtaxes payable increased.
and surtaxes
Financial Short-term borrowings decreased and the
2,389 5,589 -3,200 -57.26%
expenses interest expenses decreased accordingly.
Investment
172 466 -294 -63.09% The bonuses received decreased.
gains
Non-business
304 197 107 54.31% Government subsidies increased.
incomes
Non-business The loss on disposal of non-current assets
30 429 -399 -93.01%
expenses decreased.
Income tax
15,604 6,684 8,920 133.45% Total profits increased.
expenses
Net profits
attributable to The sales income and the gross profit rate
42,883 19,189 23,694 123.48%
owners of the increased.
Company
Net cash flows
from investing -31,947 -20,125 -11,822 -58.74% Fixed asset investments increased.
activities
Net cash flows
from financing -13,772 -4,731 -9,041 -191.10% Repaid loans increased.
activities
II. Progress of significant events and analysis & explanations on their influence and solutions
√ Applicable □ Inapplicable
1. Changes of share equity of the controlling shareholder of the Company, Jingzhou Sanonda Co., Ltd. On 24 Sep.
2014 the Company disclosed the Indicative Announcement on Changes of Share Equity of the Controlling
Shareholder. China National Agrochemical Corporation had transferred its holding of 100% share equity of
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Jingzhou Sanonda Co., Ltd. to China International Agrochemical Corporation. On 9 Oct. 2014 the Company
disclosed the Indicative Announcement on Equity Transfer of Shareholders, China National Agrochemical
Corporation had transferred its holding of 100% share equity of Jingzhou Sanonda Co., Ltd. to ADAMA Celsius
B.V. which lead to ADAMA Celsius B.V. directly and indirectly holding a total of 30.75% share equity of the
Company. On 11 Oct. 2014, the Company disclosed the Announcement of Progress of Equity Transfer of
Shareholders, and application material of the Exemption Approval of Tender Offer Duty submitted by ADAMA
Celsius B.V. had been accepted by CSRC.
2. The Company’s 300,000 tons/year reformation project of the energy saving and emission reduction technology
of caustic soda devices. Of which the total investment of 200,000 tons/year per period project of caustic soda was
estimated RMB 760000000. As of the announcement day, it has been basically completed; it was expected to test
run within the year.
Index to the relevant announcement
Overview of the significant event Date of disclosure
disclosed on the website
Indicative Announcement on Changes of
Share Equity of the Controlling 24 Sep. 2014 http://www.cninfo.com.cn
Shareholder
Indicative Announcement on Equity
9 Oct. 2014 http://www.cninfo.com.cn
Transfer of Shareholders
Announcement of Progress of Equity
11 Oct. 2014 http://www.cninfo.com.cn
Transfer of Shareholders
III. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period or such commitments carried down into the reporting period
√ Applicable □ Inapplicable
Time of
Commitm Period of
Commitment Contents making Fulfillment
ent maker commitment
commitment
Commitments made in
a share reform
I. Commitments on avoiding horizontal competition: Up to the
1. excepting the Company proposed conducting date of
transaction may lead to competition in domestic trade declaration
with Shenzhen NOPOSION Agrochemical Co., Ltd. of the report,
Commitments made in Celsius disclosed in the B Shares Offer Acquisition Report of the
acquisition report or in Property Hubei Sanonda CO., Ltd. The Company will take Within 7 commitment
7 Sep. 2013
report on changes of B.V. and effective measures to avoid the Company and its years s were being
equity MAI controlling subsidiaries engaged in the same or carried out
similar business with Hubei Sanonda CO., Ltd. within and the
the territory.2. If the Company or its controlling committers
subsidiaries domestically conduct related business abided by
which form horizontal competition with Hubei the above
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Sanonda CO., Ltd. in future (including related commitment
business of the Company proposed conducting s.
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.
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, production and sales system, and to gain the
Up to the
independent intellectual property. The Company and
date of
its direct or indirect controlling shareholders and
declaration
Sanonda of which the personnel, assets, finance,
of the report,
business and institutions will be completely
the
separated, and at the same time maintain the
Celsius commitment
operation ability of Sanonda that independently face
Property s were being
to the China agrochemical industry market. 2. The 7 Sep. 2013 Long term
B.V. and carried out
Company will avoid and reduce the related
MAI and the
transactions with Sanonda according to the
committers
requirements stipulated by the laws, regulations and
abided by
other normative documents; but for those related
the above
transactions that are inevitable or occur with
commitment
reasonable cause, will have to obey the just, fair and
s.
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,
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
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 horizontal competition:
1. The business of the Company’s subsidiaries--
Jiangsu Anpon Electrochemical Co., Ltd., Anhui
Petroleum Chemical Group Co., Ltd., Shangdong
Dacheng Agrochemical Co., Ltd. and Jiamusi
Heilong Agrochemicals Co., Ltd., and Hunan Haohua
Chemical Co., 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 Up to the
market so as to make each corporation differ in the date of
products and its ultimate users according to the declaration
securities laws and regulations and industry policy of the report,
within 7 years, thus to eliminate the current domestic the
China
horizontal competition between the Company’s commitment
National
controlling subsidiaries and Sanonda. 2. Excepting Within 7 s were being
Chemical 7 Sep. 2013
the competition situation disclosed in the offer years carried out
Corporatio
acquisition report, the Company take effective and the
n
measures to avoid the Company and its controlling committers
subsidiaries ( excepting Commitments respectively abided by
made in acquisition report by Celsius Property B.V. the above
and MAI )’ new increased business engaged in the commitment
same or similar business with Hubei Sanonda CO., s.
Ltd. within the territory in future. 3. If the Company
or its controlling subsidiaries (excepting
Commitments respectively made in acquisition report
by Celsius 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
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
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, production and sales system, and to gain the
independent intellectual property. The Company and
its direct or indirect controlling shareholders and
Up to the
Sanonda of which the personnel, assets, finance,
date of
business and institutions will be completely
declaration
separated, and at the same time maintain the
of the report,
operation ability of Sanonda that independently face
the
China to the China agrochemical industry market. 2. The
commitment
National Company will avoid and reduce the related
s were being
Chemical transactions with Sanonda according to the 7 Sep. 2013 Long term
carried out
Corporatio requirements stipulated by the laws, regulations and
and the
n other normative documents; but for those related
committers
transactions that are inevitable or occur with
abided by
reasonable cause, will have to obey the just, fair and
the above
open market principles. And to sign the agreement
commitment
according to the law and to carry out legal program,
s.
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
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
not?
Detailed reason for
failing to execute and Inapplicable
the next plan (if any)
IV. Predict the 2014 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the beginning of the
year to the end of the next reporting period compared with the same period of the last year according to prediction, as well as
explanations on the reasons
□Applicable √Inapplicable
V. Securities investment
□Applicable √Inapplicable
The Company did not invest in any securities in the reporting period.
VI. Investments in derivatives
□Applicable √Inapplicable
The Company did not invest in any derivative in the reporting period.
VII. Researches, visits and interviews received in the reporting period
√Applicable □Inapplicable
Main discussion and
Time Place Way of reception Visitor type Visitor materials provided by the
Company
Telephone Individual Product prices of
22 Jul. 2014 The Company Individual investor
communication glyphosate, paraquat etc.
Telephone Shareholder numbers of A
3 Sep. 2014 The Company Individual Individual investor
communication share at the end of Aug.
Individual The production and
Telephone
26 Sep. 2014 The Company Individual investor operation situation of the
communication
Company
Relevant events of equity
Telephone
30 Sep. 2014 The Company Individual Individual investor transfer of Jingzhou
communication
Sanonda Co., Ltd.
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Report for the Third 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 568,023,334.45 414,065,921.21
Settlement reserves
Intra-group lendings
Financial assets measured at fair
value and of which changes are
recorded into current gains and losses
Notes receivable 24,537,646.31 41,103,985.15
Accounts receivable 345,005,509.17 209,166,447.16
Accounts paid in advance 67,383,330.14 43,042,028.26
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 27,124,647.59 7,224,391.05
Financial assets purchased under
agreements to resell
Inventories 230,995,299.91 258,274,457.88
Assets held for sale
Non-current assets due within 1 year
Other current assets
Total current assets 1,263,069,767.57 972,877,230.71
Non-current assets:
Loans by mandate and advances
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
granted
Available-for-sale financial assets 9,153,782.63
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 9,153,782.63
Investing property 3,974,112.50 4,154,412.50
Fixed assets 1,222,118,463.98 1,324,222,385.03
Construction in progress 442,673,616.28 234,487,866.23
Engineering materials 61,477,937.93 0.00
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 137,460,030.41 137,371,149.10
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 11,886,236.38 12,619,948.14
Other non-current assets 16,384,400.00 13,384,400.00
Total of non-current assets 1,905,128,580.11 1,735,393,943.63
Total assets 3,168,198,347.68 2,708,271,174.34
Current liabilities:
Short-term borrowings 245,000,000.00 359,220,205.55
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Financial liabilities measured at fair
value and of which changes are
recorded into current gains and losses
Notes payable 85,000,000.00 40,000,000.00
Accounts payable 210,397,645.96 156,037,973.10
Accounts received in advance 41,291,290.18 79,437,442.04
Financial assets sold for repurchase
Handling charges and commissions
payable
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Employee’s compensation payable 24,078,367.92 25,332,986.86
Tax payable 118,116,910.37 73,337,138.50
Interest payable
Dividend payable 250,000.00 250,000.00
Other accounts payable 28,242,974.01 34,544,608.36
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within 1
7,490,000.00 77,390,000.00
year
Other current liabilities
Total current liabilities 759,867,188.44 845,550,354.41
Non-current liabilities:
Long-term borrowings 431,590,000.00 296,090,000.00
Bonds payable
Long-term payables 650,000.00 650,000.00
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 24,486,944.45 19,538,888.89
Total non-current liabilities 456,726,944.45 316,278,888.89
Total liabilities 1,216,594,132.89 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 22,418,224.49 16,059,288.71
Surplus reserves 126,334,248.31 126,334,248.31
Provisions for general risks
Retained profits 945,820,864.12 546,688,770.98
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Foreign exchange difference
Total equity attributable to owners of
1,951,680,600.58 1,546,189,571.66
the Company
Minority interests -76,385.79 252,359.38
Total owners’ (or shareholders’) equity 1,951,604,214.79 1,546,441,931.04
Total liabilities and owners’ (or
3,168,198,347.68 2,708,271,174.34
shareholders’) equity
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 480,859,691.65 329,849,120.35
Financial assets measured at fair
value and of which changes are
recorded into current gains and losses
Notes receivable 24,251,646.31 41,103,985.15
Accounts receivable 512,481,368.10 193,013,915.85
Accounts paid in advance 65,841,739.91 42,670,595.78
Interest receivable
Dividend receivable
Other accounts receivable 85,049,896.58 144,872,701.27
Inventories 221,706,982.33 254,766,534.37
Assets held for sale
Non-current assets due within 1 year
Other current assets
Total current assets 1,390,191,324.88 1,006,276,852.77
Non-current assets:
Available-for-sale financial assets 9,153,782.63
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 55,526,635.41 64,680,418.04
Investing property 3,974,112.50 4,154,412.50
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Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Fixed assets 1,060,802,218.04 1,153,224,118.73
Construction in progress 442,673,616.28 234,487,866.23
Engineering materials 61,477,937.93 0.00
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 124,652,342.26 125,275,394.07
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 7,743,738.12 7,587,719.43
Other non-current assets 16,384,400.00 13,384,400.00
Total of non-current assets 1,782,388,783.17 1,602,794,329.00
Total assets 3,172,580,108.05 2,609,071,181.77
Current liabilities:
Short-term borrowings 245,000,000.00 283,000,000.00
Financial liabilities measured at fair
value and of which changes are
recorded into current gains and losses
Notes payable 85,000,000.00 40,000,000.00
Accounts payable 205,430,720.45 151,132,431.37
Accounts received in advance 17,370,091.20 49,176,997.90
Employee’s compensation payable 24,058,965.30 22,813,584.24
Tax payable 131,724,297.32 87,016,104.58
Interest payable
Dividend payable 250,000.00 250,000.00
Other accounts payable 25,458,483.05 33,560,585.60
Liabilities held for sale
Non-current liabilities due within 1
7,490,000.00 77,390,000.00
year
Other current liabilities
Total current liabilities 741,782,557.32 744,339,703.69
Non-current liabilities:
Long-term borrowings 431,590,000.00 296,090,000.00
Bonds payable
17
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Long-term payables 650,000.00 650,000.00
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 15,636,944.45 10,688,888.89
Total non-current liabilities 447,876,944.45 307,428,888.89
Total liabilities 1,189,659,501.77 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
Specific reserves 17,449,112.18 11,090,176.40
Surplus reserves 126,334,248.31 126,334,248.31
Provisions for general risks
Retained profits 981,414,188.61 562,155,107.30
Foreign exchange difference
Total owners’ (or shareholders’) equity 1,982,920,606.28 1,557,302,589.19
Total liabilities and owners’ (or
3,172,580,108.05 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 for the reporting period
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jul.-Sept. 2014 Jul.-Sept. 2013
I. Total operating revenues 866,668,593.25 736,572,680.43
Including: Sales income 866,668,593.25 736,572,680.43
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 678,614,652.87 650,956,887.09
Including: Cost of sales 614,846,344.50 565,057,007.81
18
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
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 3,508,609.11 1,546,251.15
Selling and distribution expenses 28,856,077.05 26,449,088.74
Administrative expenses 26,461,149.36 40,178,213.03
Financial expenses 6,641,273.88 15,677,925.94
Asset impairment loss -1,698,801.03 2,048,400.42
Add: Gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
1,716,466.00 2,402,566.32
means loss)
Including: share of profits in
0.00
associates and joint ventures
Foreign exchange gains (“-”
0.00
means loss)
III. Business profit (“-” means loss) 189,770,406.38 88,018,359.66
Add: non-operating income 1,591,240.16 742,700.40
Less: non-operating expense 21,658.98 1,490,132.04
Including: loss from non-current
497,369.80
asset disposal
IV. Total profit (“-” means loss) 191,339,987.56 87,270,928.02
Less: Income tax expense 51,055,018.81 22,872,992.96
V. Net profit (“-” means loss) 140,284,968.75 64,397,935.06
Including: Net profit achieved by
combined parties before the 0.00
combinations
Attributable to owners of the
140,421,657.01 64,416,621.78
Company
Minority shareholders’ income -136,688.26 -18,686.72
19
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
VI. Earnings per share -- --
(I) Basic earnings per share 0.2364 0.1085
(II) Diluted earnings per share 0.2364 0.1085
Ⅶ. Other comprehensive incomes 0.00
Including: Other comprehensive
incomes items that cannot be
0.00
reclassified as gains and losses in the
subsequent accounting periods
Other comprehensive incomes items
that will be reclassified as gains and
losses in the subsequent accounting 0.00
periods as relevant requirements are
met
Ⅷ. Total comprehensive incomes 140,284,968.75 64,397,935.06
Attributable to owners of the
140,421,657.01 64,416,621.78
Company
Attributable to minority shareholders -136,688.26 -18,686.72
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
4. Income statement of the Company for the reporting period
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jul.-Sept. 2014 Jul.-Sept. 2013
I. Total sales 873,392,079.74 706,783,092.24
Less: cost of sales 620,782,114.02 540,539,808.98
Business taxes and surcharges 3,459,377.90 1,457,957.43
Distribution expenses 26,883,038.92 23,714,418.36
Administrative expenses 23,723,085.93 35,514,238.50
Financial costs 6,524,217.73 15,498,205.46
Impairment loss 2,048,131.71 1,714,541.86
Add: gain/(loss) from change in fair
0.00 0.00
value (“-” means loss)
Gain/(loss) from investment (“-”
1,716,466.00 4,574,977.62
means loss)
Including: income form investment
0.00 0.00
on associates and joint ventures
20
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
II. Business profit (“-” means loss) 191,688,579.53 92,918,899.27
Add: non-business income 1,590,398.98 742,700.40
Less: non-business expense 21,658.98 1,077,139.02
Including: loss from non-current
0.00 88,241.32
asset disposal
III. Total profit (“-” means loss) 193,257,319.53 92,584,460.65
Less: income tax expense 49,260,810.36 22,698,685.99
IV. Net profit (“-” means loss) 143,996,509.17 69,885,774.66
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income
Including: Other comprehensive
incomes items that cannot be
reclassified as gains and losses in the
subsequent accounting periods
Other comprehensive incomes items
that will be reclassified as gains and
losses in the subsequent accounting
periods as relevant requirements are
met
VII. Total comprehensive income 143,996,509.17 69,885,774.66
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
5. Consolidated income statement for Jan.-Sept. 2014
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Total operating revenues 2,566,950,017.93 2,256,260,997.65
Including: Sales income 2,566,950,017.93 2,256,260,997.65
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 1,986,861,585.14 2,000,685,942.77
Including: Cost of sales 1,791,336,118.38 1,775,928,846.79
21
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
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 7,129,842.54 2,602,233.84
Selling and distribution expenses 72,052,618.87 72,024,500.77
Administrative expenses 82,955,634.78 86,904,916.39
Financial expenses 23,893,206.76 55,889,480.92
Asset impairment loss 9,494,163.81 7,335,964.06
Add: Gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
1,716,466.00 4,656,748.75
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 581,804,898.79 260,231,803.63
Add: non-operating income 3,039,644.14 1,974,451.97
Less: non-operating expense 300,547.56 4,287,341.76
Including: loss from non-current
1,111,736.52
asset disposal
IV. Total profit (“-” means loss) 584,543,995.37 257,918,913.84
Less: Income tax expense 156,044,486.40 66,843,992.01
V. Net profit (“-” means loss) 428,499,508.97 191,074,921.83
Including: Net profit achieved by
combined parties before the
combinations
Attributable to owners of the
428,828,254.14 191,887,146.03
Company
Minority shareholders’ income -328,745.17 -812,224.20
22
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
VI. Earnings per share -- --
(I) Basic earnings per share 0.7220 0.3231
(II) Diluted earnings per share 0.7220 0.3231
Ⅶ. Other comprehensive incomes
Including: Other comprehensive
incomes items that cannot be
reclassified as gains and losses in the
subsequent accounting periods
Other comprehensive incomes items
that will be reclassified as gains and
losses in the subsequent accounting
periods as relevant requirements are
met
Ⅷ. Total comprehensive incomes 428,499,508.97 191,074,921.83
Attributable to owners of the
428,828,254.14 191,887,146.03
Company
Attributable to minority shareholders -328,745.17 -812,224.20
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
6. Income statement of the Company for Jan.-Sept. 2014
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Total sales 2,560,157,966.36 2,203,347,880.21
Less: cost of sales 1,792,580,063.10 1,744,838,783.58
Business taxes and surcharges 6,970,529.96 2,210,472.44
Distribution expenses 67,879,729.85 62,898,917.22
Administrative expenses 66,871,693.03 70,677,458.98
Financial costs 23,666,913.20 54,840,544.73
Impairment loss 5,118,661.69 3,642,835.26
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
1,716,466.00 7,479,160.05
means loss)
Including: income form investment
on associates and joint ventures
23
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
II. Business profit (“-” means loss) 598,786,841.53 271,718,028.05
Add: non-business income 3,037,538.48 1,375,362.73
Less: non-business expense 264,267.56 3,212,967.76
Including: loss from non-current
260,717.87
asset disposal
III. Total profit (“-” means loss) 601,560,112.45 269,880,423.02
Less: income tax expense 152,604,870.14 66,376,126.84
IV. Net profit (“-” means loss) 448,955,242.31 203,504,296.18
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income
Including: Other comprehensive
incomes items that cannot be
reclassified as gains and losses in the
subsequent accounting periods
Other comprehensive incomes items
that will be reclassified as gains and
losses in the subsequent accounting
periods as relevant requirements are
met
VII. Total comprehensive income 448,955,242.31 203,504,296.18
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
7. Consolidated cash flow statement for Jan.-Sept. 2014
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Cash flows from operating activities:
Cash received from sale of
2,226,317,764.36 1,913,594,741.51
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
24
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
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 4,383,350.82 44,321,349.09
Other cash received relating to
18,048,571.71 29,222,064.23
operating activities
Subtotal of cash inflows from operating
2,248,749,686.89 1,987,138,154.83
activities
Cash paid for goods and services 1,267,702,207.71 1,152,453,474.46
Net increase of customer lendings
and advances
Net increase of funds deposited in the
central bank and amount due from
banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 145,782,618.04 98,299,479.96
Various taxes paid 165,110,099.99 69,484,931.61
Other cash payment relating to
78,065,050.39 82,901,611.00
operating activities
Subtotal of cash outflows from
1,656,659,976.13 1,403,139,497.03
operating activities
Net cash flows from operating activities 592,089,710.76 583,998,657.80
25
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
II. Cash flows from investing activities:
Cash received from withdrawal of
investments
Cash received from return on
1,716,466.00 4,062,224.59
investments
Net cash received from disposal of
fixed assets, intangible assets and other 1,350.00 248,934.00
long-term assets
Net cash received from disposal of
3,581,762.75
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
1,717,816.00 7,892,921.34
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 321,184,393.66 209,143,279.84
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
321,184,393.66 209,143,279.84
investing activities
Net cash flows from investing activities -319,466,577.66 -201,250,358.50
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 454,659,359.80 1,099,579,666.32
Cash received from issuance of
bonds
Other cash received relating to
financing activities
26
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Subtotal of cash inflows from financing
454,659,359.80 1,099,579,666.32
activities
Repayment of borrowings 503,279,565.35 1,048,510,703.29
Cash paid for interest expenses and
69,033,958.44 72,292,686.21
distribution of dividends or profit
Including: dividends or profit paid
350,000.00
by subsidiaries to minority shareholders
Other cash payments relating to
20,070,000.00 26,087,079.11
financing activities
Sub-total of cash outflows from
592,383,523.79 1,146,890,468.61
financing activities
Net cash flows from financing activities -137,724,163.99 -47,310,802.29
IV. Effect of foreign exchange rate
558,444.13 -1,022,847.09
changes on cash and cash equivalents
V. Net increase in cash and cash
135,457,413.24 334,414,649.92
equivalents
Add: Opening balance of cash and
410,065,921.21 175,181,365.77
cash equivalents
VI. Closing balance of cash and cash
545,523,334.45 509,596,015.69
equivalents
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
8. Cash flow statement of the Company for Jan.-Sept. 2014
Prepared by Hubei Sanonda Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Cash flows from operating activities:
Cash received from sale of
2,061,575,013.29 1,868,882,855.18
commodities and rendering of service
Tax refunds received 1,101,773.34 32,620,291.11
Other cash received relating to
18,225,286.03 18,758,181.28
operating activities
Subtotal of cash inflows from operating
2,080,902,072.66 1,920,261,327.57
activities
Cash paid for goods and services 1,230,292,169.21 1,136,426,024.17
Cash paid to and for employees 136,861,327.85 86,518,399.30
27
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Various taxes paid 163,353,984.40 63,520,924.24
Other cash payment relating to
40,824,428.17 77,134,629.86
operating activities
Subtotal of cash outflows from
1,571,331,909.63 1,363,599,977.57
operating activities
Net cash flows from operating activities 509,570,163.03 556,661,350.00
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on
1,716,466.00 4,062,224.59
investments
Net cash received from disposal of
fixed assets, intangible assets and other 1,350.00 248,934.00
long-term assets
Net cash received from disposal of
21,287,258.78
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
1,717,816.00 25,598,417.37
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 317,158,489.66 206,332,355.45
assets
Cash paid for investment 5,906,730.00
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
317,158,489.66 212,239,085.45
investing activities
Net cash flows from investing activities -315,440,673.66 -186,640,668.08
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings 386,000,000.00 794,590,000.00
Cash received from issuance of
bonds
28
Report for the Third Quarter of 2014 of Hubei Sanonda Co., Ltd.
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
386,000,000.00 794,590,000.00
activities
Repayment of borrowings 358,400,000.00 802,310,000.00
Cash paid for interest expenses and
69,033,958.44 68,758,770.68
distribution of dividends or profit
Other cash payments relating to
20,070,000.00 18,880,000.00
financing activities
Sub-total of cash outflows from
447,503,958.44 889,948,770.68
financing activities
Net cash flows from financing activities -61,503,958.44 -95,358,770.68
IV. Effect of foreign exchange rate
-114,959.63 -45,549.93
changes on cash and cash equivalents
V. Net increase in cash and cash
132,510,571.30 274,616,361.31
equivalents
Add: Opening balance of cash and
325,849,120.35 149,485,252.01
cash equivalents
VI. Closing balance of cash and cash
458,359,691.65 424,101,613.32
equivalents
Legal representative: Li Zuorong Chief of the accounting work: He Xuesong Chief of the accounting organ: He Xuesong
II. Audit report
Is this report audited?
□ Yes √ No
This report is not audited.
HUBEI SANONDA CO., LTD.
Legal representative: Li Zuorong
20 Oct. 2014
29