Hubei Sanonda Co., Ltd. Third Quarter Report 2016
HUBEI SANONDA CO., LTD.
THIRD QUARTER REPORT 2016
October 2016
1
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Section I Important Statements
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.
An Liru, company principal, Liu Anping chief of the accounting work, and Tu
Zhiwen, 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.
2
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Section II Financial Highlights & Shareholder Changes
I Highlights of accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in
accounting policies or correction of accounting errors
□ Yes √ No
30 September 2016 31 December 2015 +/- (%)
Total assets (RMB) 3,073,747,159.36 2,977,268,169.32 3.24%
Net assets attributable to
shareholders of the Company 2,105,986,413.10 2,097,382,469.60 0.41%
(RMB)
January-September
July-September 2016 YoY +/- (%) YoY +/- (%)
2016
Operating revenues (RMB) 431,962,833.14 -22.63% 1,437,659,990.64 -19.84%
Net profit attributable to
shareholders of the Company 3,692,704.99 -87.46% 20,500,260.49 -86.07%
(RMB)
Net profit attributable to
shareholders of the Company
2,871,974.22 -89.90% 9,269,929.22 -93.56%
excluding exceptional profit and
loss (RMB)
Net cash flows from operating
-- -- 180,098,781.65 233.52%
activities (RMB)
Basic earnings per share
0.0062 -87.50% 0.0345 -86.07%
(RMB/share)
Diluted earnings per share
0.0062 -87.50% 0.0345 -86.07%
(RMB/share)
Weighted average return on equity 0.17% -1.25% 0.97% -6.19%
Unit: RMB
Item January-September 2016 Note
Gains/losses on the disposal of non-current assets (including the
10,208,945.53
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
3,757,000.66
certain quotas or amounts according to the country’s unified
standards
Other non-operating income and expenses other than the above 1,007,828.84
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Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Less: Income tax effects 3,743,443.76
Total 11,230,331.27 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total number of shareholders and shareholdings of top 10 shareholders at the period-end
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right
& shareholdings of top 10 shareholders at the period-end
Unit: share
Total number of preference
Total number of ordinary 63,157 (Of which the shareholders who had
shareholders at the end of the total amount of the Share resumed their voting right at 0
Reporting Period A shareholders: 44,461) the end of the Reporting
Period (if any)
Shareholdings of top 10 shareholders
Number of Pledged or frozen shares
Name of Nature of Shareholding Number of shares
restricted shares
shareholder shareholder percentage held Status Number
held
Jingzhou
Sanonda State-owned legal
20.15% 119,687,202 - - -
Shareholding Co., person
Ltd.
ADAMA Celsius Foreign legal
10.60% 62,950,659 - - -
B.V. person
Domestic natural
Chen Lichun 1.14% 6,790,954 - - -
person
State-owned
Assets
Administration State 0.70% 4,169,266 - - -
Bureau of Qichun
County
Domestic natural
Jiang Jian 0.61% 3,595,123 - - -
person
China Securities
Finance State 0.47% 2,817,300 - - -
Corporation
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Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Limited
Foreign legal
NORGES BANK 0.44% 2,634,504 - - -
person
ICBC - Lion
Medium-and-sma
ll-cap Selected Other 0.42% 2,480,384 - - -
Stock Securities
Investment Fund
Bank of China
Limited －
Manulife Teda
Other 0.38% 2,252,947 - - -
Jili Debt
Securities
Investment Funds
ICBC - JT Tianfu
Reform New
Power Flexible
Other 0.36% 2,160,078 - - -
Configuration of
Hybrid Securities
Investment Funds
Shareholdings of top 10 non-restricted shareholders
Type of shares
Name of shareholder Number of non-restricted shares held at the period-end
Type Number
Jingzhou Sanonda Shareholding Co., RMB ordinary
119,687,202 119,687,202
Ltd. share
Domestically
ADAMA Celsius B.V. 62,950,659 listed foreign 62,950,659
share
RMB ordinary
Chen Lichun 6,790,954 6,790,954
share
State-owned Assets Administration RMB ordinary
4,169,266 4,169,266
Bureau of Qichun County share
RMB ordinary
Jiang Jian 3,595,123 3,595,123
share
China Securities Finance RMB ordinary
2,817,300 2,817,300
Corporation Limited share
Domestically
NORGES BANK 2,634,504 listed foreign 2,634,504
share
ICBC - Lion Medium-and-small-cap 2,480,384 RMB ordinary 2,480,384
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Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Selected Stock Securities Investment share
Fund
Bank of China Limited －
RMB ordinary
Manulife Teda Jili Debt Securities 2,252,947 2,252,947
share
Investment Funds
ICBC - JT Tianfu Reform New
RMB ordinary
Power Flexible Configuration of 2,160,078 2,160,078
share
Hybrid Securities Investment Funds
STATE-OWNED ASSETS ADMINISTRATION BUREAU OF QICHUN COUNTY held the
shares of the Company on behalf of the country. Jingzhou Sanonda Shareholding Co., Ltd.
and ADAMA Celsius B.V. are related parties, and under the same control of China National
Related or act-in-concert parties
Chemical Agrochemical Corporation, and are acting-in-concert parties as prescribed in the
among the shareholders above
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.
1. Shareholder Chen Lichun held 6,309,732 shares of the Company through a credit collateral
securities trading account and held shares of the Company through a common securities
Top 10 ordinary shareholders
account, who thus held 6,790,954 shares of the Company in total. 2. Shareholder Jiang Jian
conducting securities margin trading
held 3,415,123 shares of the Company through a credit collateral securities trading account
(if any)
and held 180,000 shares of the Company through a common securities account, who thus held
3,595,123 shares of the Company in total.
Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conduct any
promissory repo during the Reporting Period?
□ Yea √ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top 10 of them at the period-end
□ Applicable √ Not applicable
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Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Section III Significant Events
I Changes in main accounting statement items and financial indicators in the Reporting
Period, as well as reasons for the changes
√ Applicable □ Not applicable
January-September 2016 January-September 2015 +/- (%) Main reason for change
Administrative expenses 107,008,163.61 75,339,489.24 42.03% Increase in loss on work
stoppage
Finance costs 6,340,845.70 11,753,981.19 -46.05% Increase in exchange
gains
Corporate income tax 8,815,522.32 49,855,500.55 -82.32% Decrease in total profit
Return on investment 75,504.00 1,667,155.76 -95.47% Decrease in share of
profit received
Net cash flows from 180,098,781.65 53,999,977.14 233.52% Decrease in cash paid for
operating activities taxes and fares and goods
Net cash flows from -42,164,810.11 -221,092,283.33 80.93% Decrease in project inputs
investing activities
Net cash flows from -33,133,172.89 260,485,353.02 -112.72% Decrease in borrowings
financing activities secured
Business tax and surtaxes 3,998,584.39 10,494,221.59 -61.90% Decreased revenue led to
decrease in city
maintenance tax and
surtaxes provided for
Asset impairment loss 12,911,505.76 35,258,955.17 -63.38% Decrease in inventory
falling price provision
Non-operating revenue 14,979,033.26 4,033,354.91 271.38% Increase in gains on
disposal of intangible
assets
Net profit attributable to 20,500,260.49 147,125,818.69 -86.07% Decrease in both sales
owners of the Company revenue and gross profit
margin
30 September 2016 31 December 2015 +/- (%) Main reason for change
Notes receivable 58,232,952.25 34,433,010.97 69.12% Increase in note payments
for goods
Accounts receivable 332,702,947.70 180,450,531.93 84.37% Decrease in settled sales
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Hubei Sanonda Co., Ltd. Third Quarter Report 2016
accounts
37,520,004.22 20,413,365.68 83.80% Increase in prepayments
Accounts paid in advance
for raw materials
Other accounts receivable 18,917,407.97 9,847,451.35 92.1% Increase in land payments
and export tax rebates
receivable
Inventories 189,975,175.81 287,824,164.30 -34.00% Decrease in products in
stock
Short-term borrowings 0.00 20,000,000.00 -100.00% Repayment of loans
Notes payable 46,000,000.00 0.00 New banker’s acceptance
notes
Payroll payable 15,017,194.04 30,308,341.73 -50.45% Payment of salaries for
last year
Other accounts payable 140,041,664.76 25,511,333.81 448.94% Earnest money received
Long-term accounts 0.00 650,000.00 -100.00% Paid off
payable
Non-current liabilities 106,000,000.00 244,000,000.00 -56.56% Repayment of borrowings
due within one year due within one year
Other non-current 126,722,400.00 0.00 Newly-added agricultural
liabilities development funds
II Progress on significant events, as well as the influence and solutions
√ Applicable □ Not applicable
The Company disclosed a preplan for significant asset reorganization on 14 September 2016 and the reply to an inquiry of the
Shenzhen Stock Exchange about the preplan on 15 October 2016. Meanwhile, the stock of the Company has resumed trading since
17 October 2016.
III Commitments of the Company, its shareholders, actual controller, acquirer, directors,
supervisors, senior management or other related parties fulfilled in the Reporting Period or
ongoing at the period-end
√ Applicable □ Not applicable
Date of
Type of Term of
Commitm commit Fulfillmen
Commitment commit Contents commit
ent maker ment t
ment ment
making
Commitments made in
- - - - - -
share reform
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Hubei Sanonda Co., Ltd. Third Quarter Report 2016
I. Commitments on avoiding horizontal
competition: 1. except for 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 take effective measures to
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
Commit
domestically conduct related business which form
ments on The
horizontal competition with Hubei Sanonda CO.,
the commitme
Ltd. in future (including related business of the
ADAMA horizont nts were
Company proposed conducting transaction may
Celsius al being
lead to competition in domestic trade with
B.V.;ADA competit carried out
Shenzhen NOPOSION Agrochemical Co., Ltd.
MA ion, the 2013-09 2020-09 and the
disclosed in the B Shares Offer Acquisition Report
Agricultur related -07 -06 commitme
of Hubei Sanonda CO., Ltd.) The Company will
al transacti nt makers
according to the securities laws and regulations and
Solutions on and abided by
Commitments made in industry policy within 7 years or when the
Ltd. the the above
acquisition documents management think the condition is ripe to actively
capital commitme
or shareholding take steps, gradually eliminate the competition, the
occupati nts.
alteration documents concrete measures including but not limited to the
on
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.
Commit II. Commitments on maintaining the Company’s The
ADAMA
ments on operation independence and specify the related commitme
Celsius
the transaction: 1. After the complement of the tender nts were
B.V.;ADA
horizont offer, Sanonda will continue to maintain complete being
MA 2013-09 9999-12
al purchase, production and sales system, and to gain carried out
Agricultur -07 -31
competit the independent intellectual property. The Company and the
al
ion, the and its direct or indirect controlling shareholders commitme
Solutions
related and Sanonda of which the personnel, assets, nt makers
Ltd.
transacti finance, business and institutions will be abided by
9
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
on and completely separated, and at the same time the above
the maintain the operation ability of Sanonda that commitme
capital independently face to the China agrochemical nts.
occupati industry market. 2. The Company will avoid and
on 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 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
Commit
Hunan Haohua Chemical Co., Ltd. and its
ments on The
subsidiary had the same or similar situations with
the commitme
the main business of Sanonda, and aimed at the
horizont nts were
domestic horizontal competition, the Company
al being
China committed to gradually eliminate such kind of
competit carried out
National horizontal competition in the future and to fight for
ion, the 2013-09 2020-09 and the
Chemical the internal assets reconstruction, to adjust the
related -07 -06 commitme
Corporatio industrial plan and business structure, to transform
transacti nt maker
n technology and to upgrade products, to divide the
on and abided by
market so as to make each corporation differ in the
the the above
products and its ultimate users according to the
capital commitme
securities laws and regulations and industry policy
occupati nts.
within 7 years, thus to eliminate the current
on
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
10
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
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 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 continue to maintain complete
Commit purchase, production and sales system, and to gain
ments on the independent intellectual property. The Company The
the and its direct or indirect controlling shareholders commitme
horizont and Sanonda of which the personnel, assets, nts were
al finance, business and institutions will be being
China
competit completely separated, and at the same time carried out
National
ion, the maintain the operation ability of Sanonda that 2013-09 9999-12 and the
Chemical
related independently face to the China agrochemical -07 -31 commitme
Corporatio
transacti industry market. 2. The Company will avoid and nt maker
n
on and reduce the related transactions with Sanonda abided by
the according to the requirements stipulated by the the above
capital laws, regulations and other normative documents; commitme
occupati but for those related transactions that are inevitable nts.
on 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
11
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
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 in
time of asset - - - - - -
restructuring
Commitments made in
time of IPO or - - - - - -
refinancing
Commitments
concerning stock - - - - - -
ownership incentive
Other commitments
made to minority - - - - - -
shareholders
Executed on time Yes
IV Performance forecast for Y2016
Warning of possible loss or considerable YoY change in the accumulative net profit made during the year-beginning to the end of the
next reporting period, as well as the reasons
□ Applicable √ Not applicable
V Securities investment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investment in derivative financial instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits paid to the Company for purposes of research, communication, interview, etc.
during the Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
12
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Reason of suspension and time of
2016-08-23 By phone Individual resumption of the Company stock, not
offer written reply
When is the Company stock resumption?
2016-09-14 By phone Individual
Not offer written reply
VIII Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s funds by the controlling shareholder or its related parties
for non-operating purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
13
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Hubei Sanonda Co., Ltd.
30 September 2016
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 527,299,409.96 406,098,208.72
Settlement reserves
Lendings to banks and other financial
institutions
Financial assets measured at fair value
with fair value changes included in the
profit and loss for the Reporting Period
Derivative financial assets
Notes receivable 58,232,952.25 34,433,010.97
Accounts receivable 332,702,947.70 180,450,531.93
Accounts paid in advance 37,520,004.22 20,413,365.68
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividends receivable
Other accounts receivable 18,917,407.97 9,847,451.35
Financial assets purchased under
agreement to resell
Inventories 189,975,175.81 287,824,164.30
Assets held for sale
Non-current assets due within one year
Other current assets 11,038,934.77 14,685,220.14
Total current assets 1,175,686,832.68 953,751,953.09
Non-current assets:
14
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Loans and advances to customers
Available-for-sale financial assets 9,153,782.63 9,153,782.63
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments
Investment property 4,801,080.72 5,036,745.54
Fixed assets 1,526,074,232.43 1,684,051,200.09
Construction in progress 181,542,438.64 143,683,545.15
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 158,975,684.11 165,569,924.44
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 12,513,108.15 11,021,018.38
Other non-current assets 5,000,000.00 5,000,000.00
Total non-current assets 1,898,060,326.68 2,023,516,216.23
Total assets 3,073,747,159.36 2,977,268,169.32
Current liabilities:
Short-term borrowings 20,000,000.00
Borrowings from the Central Bank
Money deposits accepted and inter-bank
deposits
Loans from banks and other financial
institutions
Financial liabilities measured at fair
value with fair value changes included in
the profit and loss for the Reporting Period
Derivative financial liabilities
Notes payable 46,000,000.00
Accounts payable 161,613,737.51 134,357,481.77
Accounts received in advance 27,250,295.65 26,666,138.22
Financial assets sold for repurchase
Handling charges and commissions
15
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
payable
Payroll payable 15,017,194.04 30,308,341.73
Taxes and fares payable 30,329,571.91 26,858,466.27
Interest payable 878,194.44 1,123,849.31
Dividends payable 250,000.00 250,000.00
Other accounts payable 140,041,664.76 25,511,333.81
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 one
106,000,000.00 244,000,000.00
year
Other current liabilities
Total current liabilities 527,380,658.31 509,075,611.11
Non-current liabilities:
Long-term borrowings 290,090,000.00 343,590,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable 0.00 650,000.00
Long-term payroll payable
Special payables
Estimated liabilities
Deferred income 23,567,687.95 26,570,088.61
Deferred income tax liabilities
Other non-current liabilities 126,722,400.00
Total non-current liabilities 440,380,087.95 370,810,088.61
Total liabilities 967,760,746.26 879,885,699.72
Owners’ equity:
Share capital 593,923,220.00 593,923,220.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
16
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Capital reserves 263,063,461.97 263,063,461.97
Less: Treasury stock
Other composite income
Special reserves 25,800,622.66 22,848,859.15
Surplus reserves 190,699,248.11 190,699,248.11
Provisions for general risks
Retained profit 1,032,499,860.36 1,026,847,680.37
Total equity attributable to owners of the
2,105,986,413.10 2,097,382,469.60
Company
Minority interests
Total owners’ equity 2,105,986,413.10 2,097,382,469.60
Total liabilities and owners’ equity 3,073,747,159.36 2,977,268,169.32
Legal representative: An Liru Chief of the accounting work: Liu Anping Chief of the accounting organ: Tu Zhiwen
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Monetary funds 322,553,854.79 378,450,204.94
Financial assets measured at fair value
with fair value changes included in the profit
and loss for the Reporting Period
Derivative financial assets
Notes receivable 57,892,952.25 32,331,010.97
Accounts receivable 666,437,941.29 352,274,073.40
Accounts paid in advance 31,839,423.47 19,218,775.50
Interest receivable
Dividends receivable
Other accounts receivable 3,407,795.25 1,535,805.55
Inventories 176,187,933.48 275,057,647.64
Assets held for sale
Non-current assets due within one year
Other current assets 0.00 387,633.86
Total current assets 1,258,319,900.53 1,059,255,151.86
Non-current assets:
17
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Available-for-sale financial assets 9,153,782.63 9,153,782.63
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 55,526,635.41 55,526,635.41
Investment property 4,801,080.72 5,036,745.54
Fixed assets 1,392,673,910.04 1,543,099,613.97
Construction in progress 181,542,438.64 139,297,997.97
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 147,035,395.69 150,253,232.11
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 9,521,665.24 8,855,180.95
Other non-current assets 5,000,000.00 5,000,000.00
Total non-current assets 1,805,254,908.37 1,916,223,188.58
Total assets 3,063,574,808.90 2,975,478,340.44
Current liabilities:
Short-term borrowings 0.00 20,000,000.00
Financial liabilities measured at fair value
with fair value changes included in the profit
and loss for the Reporting Period
Derivative financial liabilities
Notes payable 46,000,000.00
Accounts payable 153,850,145.07 129,017,385.70
Accounts received in advance 22,149,278.95 24,885,411.49
Payroll payable 13,710,423.66 28,311,263.93
Taxes and fares payable 24,303,552.01 21,773,193.24
Interest payable 878,194.44 1,123,849.31
Dividends payable 250,000.00 250,000.00
Other accounts payable 142,311,579.71 23,536,806.94
Liabilities held for sale
Non-current liabilities due within one year 106,000,000.00 244,000,000.00
18
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Other current liabilities
Total current liabilities 509,453,173.84 492,897,910.61
Non-current liabilities:
Long-term borrowings 290,090,000.00 343,590,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables 0.00 650,000.00
Long-term payroll payables
Special payables
Estimated liabilities
Deferred income 17,421,854.59 19,686,755.26
Deferred income tax liabilities
Other non-current liabilities 126,722,400.00
Total non-current liabilities 434,234,254.59 363,926,755.26
Total liabilities 943,687,428.43 856,824,665.87
Owners’ equity:
Share capital 593,923,220.00 593,923,220.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 263,799,837.18 263,799,837.18
Less: Treasury stock
Other composite income
Special reserves 20,831,510.35 17,879,746.84
Surplus reserves 190,699,248.11 190,699,248.11
Retained profit 1,050,633,564.83 1,052,351,622.44
Total owners’ equity 2,119,887,380.47 2,118,653,674.57
Total liabilities and owners’ equity 3,063,574,808.90 2,975,478,340.44
3. Consolidated income statement for the Reporting Period
Unit: RMB
Item July-September 2016 July-September 2015
1. Operating revenues 431,962,833.14 558,298,652.20
19
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Including: Sales income 431,962,833.14 558,298,652.20
Interest income
Premium income
Fee and commission income
2. Operating costs 426,847,888.55 524,537,189.92
Including: Cost of sales 366,098,195.13 465,631,863.12
Interest expenses
Fee and commission expenses
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Business tax and surtaxes 145,309.20 1,607,100.75
Selling expenses 22,605,148.52 25,379,717.18
Administrative expenses 37,864,224.32 26,415,580.95
Finance costs 2,396,848.62 -2,139,035.30
Asset impairment loss -2,261,837.24 7,641,963.22
Add: Profit on fair value changes (“-”
means loss)
Return on investment (“-” means
1,667,155.76
loss)
Including: Share of profit/loss of
associates and joint ventures
Exchange gains (“-” means loss)
3. Operating profit (“-” means loss) 5,114,944.59 35,428,618.04
Add: Non-operating revenue 1,096,173.28 1,095,975.47
Including: Profit on disposal of
80,003.25
non-current assets
Less: Non-operating expense 1,865.58
Including: Loss on disposal of
1,865.58
non-current assets
4. Total profit (“-” means loss) 6,209,252.29 36,524,593.51
Less: Corporate income tax 2,516,547.30 6,956,139.14
5. Net profit (“-” means loss) 3,692,704.99 29,568,454.37
Net profit attributable to owners of 3,692,704.99 29,447,643.10
20
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
the Company
Minority interests’ income 120,811.27
6. Other comprehensive income net of
tax
Other comprehensive income net
of tax attributable to owners of the
Company
6.1 Other comprehensive
income that will not be reclassified into
profit/loss
6.1.1 Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
6.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into profit/loss
under the equity method
6.2 Other comprehensive
income to be subsequently reclassified
into profit/loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit/loss
under the equity method
6.2.2 Profit/loss on fair value
changes of available-for-sale financial
assets
6.2.3 Profit/loss on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective profit/loss on
cash flow hedges
6.2.5 Currency translation
differences
6.2.6 Other
Other comprehensive income net
of tax attributable to minority interests
7. Total comprehensive income 3,692,704.99 29,568,454.37
Attributable to owners of the
3,692,704.99 29,447,643.10
Company
Attributable to minority interests 120,811.27
21
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
8. Earnings per share
8.1 Basic earnings per share 0.0062 0.0496
8.2 Diluted earnings per share 0.0062 0.0496
Where business mergers under the same control occurred in the Reporting Period, net profit achieved by the merged parties before
the business mergers was RMB0.00, with the corresponding amount for the same period of last year being RMB0.00.
Legal representative: An Liru Chief of the accounting work: Liu Anping Chief of the accounting organ: Tu Zhiwen
4. Income statement of the Company for the Reporting Period
Unit: RMB
Item July-September 2016 July-September 2015
1. Operating revenues 431,161,841.45 565,157,182.75
Less: Operating costs 367,794,478.23 485,204,846.67
Business tax and surtaxes 142,068.22 1,576,979.43
Selling expenses 20,058,804.75 24,450,836.75
Administrative expenses 36,467,270.45 24,714,753.58
Finance costs 3,754,808.93 -761,497.65
Asset impairment loss 1,462,368.62 6,440,022.68
Add: profit on fair value changes (“-”
means loss)
Return on investment (“-” means
1,667,155.76
loss)
Including: Share of profit/loss of
associates and joint ventures
2. Operating profit (“-” means loss) 1,482,042.25 25,198,397.05
Add: Non-operating revenue 850,339.95 850,142.14
Including: Profit on disposal of
80,003.25
non-current assets
Less: Non-operating expense 1,865.58
Including: Loss on disposal of
1,865.58
non-current assets
3. Total profit (“-” means loss) 2,330,516.62 26,048,539.19
Less: Corporate income tax 548,824.25 6,299,673.99
4. Net profit (“-” means loss) 1,781,692.37 19,748,865.20
5. Other comprehensive income net of
tax
5.1 Other comprehensive income that
will not be reclassified into profit and
22
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
loss
5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into profit/loss
under the equity method
5.2 Other comprehensive income to
be subsequently reclassified into
profit/loss
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit/loss
under the equity method
5.2.2 Profit/loss on fair value
changes of available-for-sale financial
assets
5.2.3 Profit/loss on reclassifying
held-to-maturity investments into
available-for-sale financial assets
5.2.4 Effective profit/loss on cash
flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income 1,781,692.37 19,748,865.20
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated income statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item January-September 2016 January-September 2015
1. Operating revenues 1,437,659,990.64 1,793,550,335.01
Including: Sales income 1,437,659,990.64 1,793,550,335.01
Interest income
Premium income
Fee and commission income
23
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
2. Operating costs 1,423,393,486.86 1,602,167,732.71
Including: Cost of sales 1,225,286,297.12 1,407,399,492.83
Interest expenses
Fee and commission expenses
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Business tax and surtaxes 3,998,584.39 10,494,221.59
Selling expenses 67,848,090.28 61,921,592.69
Administrative expenses 107,008,163.61 75,339,489.24
Finance costs 6,340,845.70 11,753,981.19
Asset impairment loss 12,911,505.76 35,258,955.17
Add: Profit on fair value changes (“-”
means loss)
Return on investment (“-” means
75,504.00 1,667,155.76
loss)
Including: Share of profit/loss of
associates and joint ventures
Exchange gains (“-” means loss)
3. Operating profit (“-” means loss) 14,342,007.78 193,049,758.06
Add: Non-operating revenue 14,979,033.26 4,033,354.91
Including: Profit on disposal of
10,214,203.76 80,003.25
non-current assets
Less: Non-operating expense 5,258.23 14,810.07
Including: Loss on disposal of
5,258.23 7,689.72
non-current assets
4. Total profit (“-” means loss) 29,315,782.81 197,068,302.90
Less: Corporate income tax 8,815,522.32 49,855,500.55
5. Net profit (“-” means loss) 20,500,260.49 147,212,802.35
Net profit attributable to owners of
20,500,260.49 147,125,818.69
the Company
Minority interests’ income 86,983.66
6. Other comprehensive income net of
tax
Other comprehensive income net
24
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
of tax attributable to owners of the
Company
6.1 Other comprehensive
income that will not be reclassified into
profit/loss
6.1.1 Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
6.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into profit/loss
under the equity method
6.2 Other comprehensive
income to be subsequently reclassified
into profit/loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit/loss
under the equity method
6.2.2 Profit/loss on fair value
changes of available-for-sale financial
assets
6.2.3 Profit/loss on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective profit/loss on
cash flow hedges
6.2.5 Currency translation
differences
6.2.6 Other
Other comprehensive income net
of tax attributable to minority interests
7. Total comprehensive income 20,500,260.49 147,212,802.35
Attributable to owners of the
20,500,260.49 147,125,818.69
Company
Attributable to minority interests 86,983.66
8. Earnings per share
8.1 Basic earnings per share 0.0345 0.2477
8.2 Diluted earnings per share 0.0345 0.2477
Where business mergers under the same control occurred in the current period, the net profit achieved by the merged parties before
the business mergers was RMB0.00, with the corresponding amount for the same period of last year being RMB0.00.
25
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
6. Income statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item January-September 2016 January-September 2015
1. Operating revenues 1,428,050,843.45 1,825,137,994.82
Less: Operating costs 1,224,218,814.54 1,456,596,958.04
Business tax and surtaxes 3,967,554.85 10,391,670.97
Selling expenses 62,489,429.76 59,488,583.83
Administrative expenses 102,577,822.91 70,348,679.31
Finance costs 11,112,451.30 13,711,309.13
Asset impairment loss 8,894,601.80 28,808,483.31
Add: profit on fair value changes (“-”
means loss)
Return on investment (“-” means
75,504.00 1,667,155.76
loss)
Including: Share of profit/loss of
associates and joint ventures
2. Operating profit (“-” means loss) 14,865,672.29 187,459,465.99
Add: Non-operating revenue 3,840,051.62 3,295,854.92
Including: Profit on disposal of
80,003.25
non-current assets
Less: Non-operating expense 5,258.23 14,810.07
Including: Loss on disposal of
5,258.23 7,689.72
non-current assets
3. Total profit (“-” means loss) 18,700,465.68 190,740,510.84
Less: Corporate income tax 5,570,442.79 49,589,551.97
4. Net profit (“-” means loss) 13,130,022.89 141,150,958.87
5. Other comprehensive income net of
tax
5.1 Other comprehensive income that
will not be reclassified into profit and
loss
5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into profit/loss
under the equity method
26
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
5.2 Other comprehensive income to
be subsequently reclassified into
profit/loss
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit/loss
under the equity method
5.2.2 Profit/loss on fair value
changes of available-for-sale financial
assets
5.2.3 Profit/loss on reclassifying
held-to-maturity investments into
available-for-sale financial assets
5.2.4 Effective profit/loss on cash
flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income 13,130,022.89 141,150,958.87
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
7. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item January-September 2016 January-September 2015
1. Cash flows from operating activities:
Cash received from sale of
985,862,427.42 1,338,674,461.07
commodities and rendering of service
Net increase in money deposits from
customers and interbank placements
Net increase in loans from the
Central Bank
Net increase in funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
27
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Net increase in deposits of policy
holders and investment fund
Net increase in disposal of financial
assets at fair value through profit/loss
Interest, fees and commissions
received
Net increase in interbank borrowings
Net increase in funds in repurchase
business
Tax refunds received 15,651,740.37 33,027,658.35
Cash received from other operating
6,516,166.67 13,336,093.05
activities
Subtotal of cash inflows from operating
1,008,030,334.46 1,385,038,212.47
activities
Cash paid for goods and services 552,215,840.22 998,571,519.01
Net increase in loans and advances to
customers
Net increase in funds deposited in the
Central Bank and interbank placements
Cash paid for claims of original
insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 143,197,915.52 154,413,656.47
Taxes and fares paid 45,890,780.09 116,454,133.57
Cash paid for other operating
86,627,016.98 61,598,926.28
activities
Subtotal of cash outflows from
827,931,552.81 1,331,038,235.33
operating activities
Net cash flows from operating activities 180,098,781.65 53,999,977.14
2. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received as return on
75,504.00 1,667,155.76
investments
Net cash received from disposal of
fixed assets, intangible assets and other 18,221,964.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Cash received from other investing
28
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
activities
Subtotal of cash inflows from investing
18,297,468.00 1,667,155.76
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 60,462,278.11 222,759,439.09
assets
Cash paid for investment
Net increase in pledged loans
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
60,462,278.11 222,759,439.09
investing activities
Net cash flows from investing activities -42,164,810.11 -221,092,283.33
3. Cash flows from financing activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received as borrowings 411,605,350.00
Cash received from issuance of
bonds
Cash received from other financing
226,722,400.00 4,500,000.00
activities
Subtotal of cash inflows from financing
226,722,400.00 416,105,350.00
activities
Repayment of borrowings 211,500,000.00 68,840,800.00
Cash paid for interest expenses and
34,555,572.89 86,779,196.98
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority interests
Cash paid for other financing
13,800,000.00
activities
Sub-total of cash outflows from
259,855,572.89 155,619,996.98
financing activities
Net cash flows from financing activities -33,133,172.89 260,485,353.02
4. Effect of foreign exchange rate
2,600,402.59 822,030.92
changes on cash and cash equivalents
5. Net increase in cash and cash
107,401,201.24 94,215,077.75
equivalents
29
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
Add: Opening balance of cash and
406,098,208.72 418,847,736.46
cash equivalents
6. Closing balance of cash and cash
513,499,409.96 513,062,814.21
equivalents
8. Cash flow statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
Item January-September 2016 January-September 2015
1. Cash flows from operating activities:
Cash received from sale of
816,434,629.93 1,297,560,789.66
commodities and rendering of service
Tax refunds received 168,260.60 16,386,842.52
Cash received from other operating
10,972,672.86 13,199,365.29
activities
Subtotal of cash inflows from operating
827,575,563.39 1,327,146,997.47
activities
Cash paid for goods and services 560,624,633.14 893,146,308.65
Cash paid to and for employees 138,230,622.08 143,778,453.71
Taxes and fares paid 38,185,716.01 110,933,461.28
Cash paid for other operating
78,055,336.12 52,821,928.31
activities
Subtotal of cash outflows from
815,096,307.35 1,200,680,151.95
operating activities
Net cash flows from operating activities 12,479,256.04 126,466,845.52
2. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received as return on
75,504.00 1,667,155.76
investments
Net cash received from disposal of
fixed assets, intangible assets and other 10,621,964.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Cash received from other investing
activities
Subtotal of cash inflows from investing
10,697,468.00 1,667,155.76
activities
Cash paid to acquire fixed assets, 59,749,655.11 222,759,439.09
30
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
intangible assets and other long-term
assets
Cash paid for investment
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
59,749,655.11 222,759,439.09
investing activities
Net cash flows from investing activities -49,052,187.11 -221,092,283.33
3. Cash flows from financing activities:
Cash received from capital
contributions
Cash received as borrowings 371,000,000.00
Cash received from issuance of
bonds
Cash received from other financing
226,722,400.00 4,500,000.00
activities
Subtotal of cash inflows from financing
226,722,400.00 375,500,000.00
activities
Repayment of borrowings 211,500,000.00 50,500,000.00
Cash paid for interest expenses and
34,555,572.89 86,548,931.74
distribution of dividends or profit
Cash paid for other financing
13,800,000.00
activities
Sub-total of cash outflows from
259,855,572.89 137,048,931.74
financing activities
Net cash flows from financing activities -33,133,172.89 238,451,068.26
4. Effect of foreign exchange rate
9,753.81 -278,150.43
changes on cash and cash equivalents
5. Net increase in cash and cash
-69,696,350.15 143,547,480.02
equivalents
Add: Opening balance of cash and
378,450,204.94 344,750,284.42
cash equivalents
6. Closing balance of cash and cash
308,753,854.79 488,297,764.44
equivalents
II Auditor’s report
Is this Report audited?
□ Yes √ No
31
Hubei Sanonda Co., Ltd. Third Quarter Report 2016
This Report is unaudited.
Hubei Sanonda Co., Ltd.
26 October 2016
32