山东省中鲁远洋渔业股份有限公司
SHANDONG ZHONGLU OCEANIC FISHERIES COMPANY LIMITED
2009 年半年度报告全文
August 7, 20091
Contents
SECTION I. IMPORTANT NOTICE----------------------------------------------------------------2
SECTION II. COMPANY PROFILE----------------------------------------------------------------3
SECTION III. CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT
SHARES HELD BY MAIN SHAREHOLDERS--------------------------------------------------5
SECTION IV. PARTICULARS ABOUT DIRECTORS, SUPERVISORS AND SENIOR
EXECUTIVES-----------------------------------------------------------------------------------------7
SECTION V. REPORT OF BOARD OF DIRECTORS-------------------------------------------8
SECTION VI. SIGNIFICANT EVENTS----------------------------------------------------------13
SECTION VII. FINANCIAL REPORT------------------------------------------------------------16
SECTION VIII. DOCUMENTS AVAILABLE FOR REFERENCE---------------------------822
Section I. Important Notice
Board of Directors and Supervisory Committee of Shandong Zhonglu Oceanic Fisheries
Company Limited (hereinafter referred to as the Company) and its directors, supervisors
and senior executives hereby confirm that there are no any important omissions, fictitious
statements or serious misleading information carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion of the
whole contents.
No director, supervisor and senior executive stated that he (she) couldn’t ensure the
correctness, accuracy and completeness of the contents of the Semi-annual Report or have
objection to this report.
Director Hu Yuanmu did not attend the meeting of Board of Directors, but he entrusted
Director Xu Haifeng in writing forms to attend the meeting and exercised voting rights on
his behalf.
Wang Zhao’an, Chairman of the Board of the Company; Fu Jiguang, CFO of the Company,
and Wu Shuxian, Manager of Financial Department hereby confirm that the Financial
Report enclosed in the Semi-annual Report is true and complete.
The semi-annual financial report of the Company has not been audited.
This report was prepared in both English and Chinese. Should there be any difference in
interpretation of the two versions, the Chinese version shall prevail.3
Section II. Company Profile
I. Company Profile
(I) Name of the Company:
In Chinese: 山东省中鲁远洋渔业股份有限公司
In English: Shandong Zhonglu Oceanic Fisheries Company Limited
(II) Stock Exchange Listed with: Shenzhen Stock Exchange
Short Form of the Stock: Zhonglu B
Stock Code: 200992
(III) Registered Address: No. 43, Heping Road, Jinan, Shandong
Office Address: No. 43, Heping Road, Jinan, Shandong
Post Code: 250014
E-mail: zlzqb@163.com
(IV) Legal Representative: Wang Zhao’an
(V) Secretary of Board of Directors: Zhou Feng
Securities affairs Representative: Li Ying
Contact Address: No. 43, Heping Road, Jinan, Shandong
Tel: (86) 531-86553278, 86553276
Fax: (86) 531-86982906
E-mail: zlzqb@163.com
(VI) Newspapers Chosen for Disclosing the Information of the Company:
Securities Times and Hong Kong Wen Wei Po
Internet Website Designated by CSRC for Publishing the Semi-annual Report:
http://www.cninfo.com.cn
The Place Where the Semi-annual Report is Prepared and Placed: Office of the Board of
Directors
(VII) Other information about the Company
The initial registered date: Jul. 23, 1999
The registered date after change: June 6, 2006
The registered place after change: Shandong Province Administrative Bureau for
Industry and Commerce
Registration code for business license of corporation: 3700001803000
Registration code of tax: 3701028630431024
II. Major financial data and indexes
(I) Major accounting data in the report period
Unit: RMB
At the end of this
report period
At the period-end
of last year
Increase/decrease at the end of
this report period compared
with that in period-end of last
year (%)
Total assets 446,605,252.11 494,773,011.16 -9.74%
Owners’ equity attributable to shareholders
of the listed company
348,867,585.32 339,351,974.13 2.80%
Share capital 266,071,320.00 266,071,320.00 0.00%
Net assets per share attributable to
shareholders of the listed
company(RMB/Share)
1.31 1.28 2.34%
This report period
(Jan. to Jun.)
The same period
of last year
Increase/decrease in this report
period year-on-year (%)
Total operating income 112,869,854.62 111,317,295.45 1.39%
Operating profit 5,203,008.96 -1,931,708.36 369.35%
Total profit 9,878,539.22 16,006,561.46 -38.28%
Net profit attributable to shareholders of the
listed company
9,878,539.22 15,996,897.71 -38.25%
Net profit attributable to shareholders of the
listed company after deducting
non-recurring gains and losses
9,875,404.72 16,128,627.89 -38.77%
Basic earnings per share (RMB/Share) 0.04 0.06 -33.33%
Diluted earnings per share (RMB/Share) 0.04 0.06 -33.33%
Return on equity (%) 2.83% 4.81% -1.98%
Net cash flow arising from operating
activities
24,228,719.70 3,356,723.00 621.80%
Net cash flow per share arising from
operating activities (RMB/Share)
0.09 0.01 800.00%
(II) Items of non-recurring gains and losses and the relevant amount:
Unit: RMB
Items of non-recurring gains and losses Amount
Notes
(If applicable)
Other non-operating income and expense 3,134.50
Total 3,134.50 -5
Section III. Changes in Share Capital and Particulars about Shares Held
by Main Shareholders
I. In the report period, the Company’s total shares and its structure remained unchanged.
II. Ended June 30, 2009, the Company had totally 16,906 shareholders, including 16,900
shareholders holding foreign capital shares in circulating listed domestically.
III. Particulars about shares held by main shareholders
(I) Particulars about shares held by the top ten shareholders
No. Name of shareholders
Increase/decr
ease in the
report period
Shares held at
the
period-end
(share)
Propor
tion
(%)
Type of share
Number of
share pledged
or frozen
(share)
Nature of
shareholders
1
SHANDONG
STATE-OWNED ASSETS
INVESTMENT HOLDING
CO., LTD.
0 88,000,000 33.07 Non-circulated 0
State-owned
shareholder
2
SHANDONG LUXIN
INVESTMENT HOLDINGS
GROUP CO., LTD.
0 37,731,320 14.18 Non-circulated 0
State-owned
shareholder
3
CHINA HEAVY
AUTOMOBILE GROUP
JINAN TRUCK CO., LTD.
0 1,950,000 0.73 Non-circulated Unknown
State-owned
shareholder
4
DBS VICKERS(HONG
KONG)LTD
A/C CLIENTS
1,420,000 1,420,000 0.53 Circulated Unknown
Foreign
shareholder
5 CHEN QIAN FEN -2,252,388 1,091,500 0.41 Circulated Unknown
Foreign
shareholder
6 YI YING 0 1,078,200 0.41 Circulated Unknown
Foreign
shareholder
7 LUO WEI DONG 313,600 932,500 0.35 Circulated Unknown
Foreign
shareholder
8 HUANG JIA YI 0 904,180 0.34 Circulated Unknown
Foreign
shareholder
9 PRO PERFORMENCE 850,000 850,000 0.32 Circulated Unknown
Foreign
shareholder
10 WANG DONG SHENG -40,000 838,500 0.32 Circulated Unknown
Foreign
shareholder
Explanations:
1. In the report period, the controlling shareholder of the Company was not changed.6
2. Among the top ten shareholders, Both SDGZK and Luxin Group belonged to provincial
state-owned enterprises controlled by Shandong Provincial State-owned Assets Supervision
and Administration Commission, and China Heavy Automobile Group Jinan Truck Co., Ltd.
are sponsor shareholders of the Company. There exists no associated relationship among
the aforesaid shareholders, and they do not belong to the consistent actor regulated by the
Management Measure of Information Disclosure on Change of Shareholding for Listed
Companies; the other shareholders are circulating ones of domestically listed foreign shares,
and the Company is not aware of whether there exists associated relationship, or they
belong to the consistent actor regulated by the Management Measure of Information
Disclosure on Change of Shareholding for Listed Companies.
(II) Particulars about shares held by the top ten shareholders of circulation share
No. Full name of Shareholders
Number of circulation shares
held at the period-end
Type (A-share, B-share,
H-share and others)
1 DBS VICKERS(HONG KONG)LTD A/C
CLIENTS 1,420,000 B-share
2 CHEN QIAN FEN 1,091,500 B-share
3 YI YING 1,078,200 B-share
4 LUO WEI DONG 932,500 B-share
5 HUANG JIA YI 904,180 B-share
6 PRO PERFORMENCE 850,000 B-share
7 WANG DONG SHENG 838,500 B-share
8 SHANGHAI (HONG KONG) WANGUO
SECURITIES CO., LTD.
596,000 B-share
9 OU WEN QING 560,900 B-share
10 QI FENG 560,100 B-share
Among the top ten shareholders of circulation share, the Company is unknown whether
there exists associated relationship or whether they belong to the consistent actor regulated
by the Management Measure of Information Disclosure on Change of Shareholding for
Listed Companies.7
Section IV. Particulars about Directors, Supervisors and Senior
Executives
I. Change of shares of the Company held by directors, supervisors and senior executives
In the report period, directors, supervisors and senior executives of the Company did not
hold the Company’s shares.
II. New engagement or dismissal of directors, supervisors and senior executives of the
Company
On Mar. 31st of 2009, the Shareholders’ General Meeting of the Company for 2008 decided
to engage Hu Yuanmu and Xu Haifeng as independent directors, for office terms of the
original independent directors Wang Hanmin and Jiang Jin had already expired and they
left their posts willingly.8
Section V. Report of Board of Directors
I. Analysis of the Management on the operating results and financial status
In the report period, the Company continued to engage in fishing in the middle and top
grounds of oceans, the processing export of aquatic products, and tenancy and management
of refrigerated cargo vessel. For the report period, the amount of oceanic fisheries reached
7,298.53 tons. The Company realized operating income of RMB 112.87 million, with an
increase rate of 1.39% over the same period of last year; operating cost of RMB 96.31
million, with a decrease rate of 1.70% over the same period of last year; operating profit of
RMB 5.2 million, with an increase of 369.35% over the same period of last year, and the
net profit attributable to shareholders of listed company of RMB 9.88 million with a
decrease of 38.25% over the same period of last year.
II. Main business and operation of the Company during the report period
(I)Main business scope of the Company
The Company is a comprehensive enterprise mainly engaging in oceanic fishing. The
business scope mainly includes: outer-sea and ocean fishing; breeding, processing and
selling aquatic products; import and export business for the commodity within approved
range; production and sale of mechanic ice; manufacture, installment and maintenance of
refrigeration equipment; refrigeration and cold storage; service of loading and unloading or
portage; house leasing.
(II) Condition of main operations
In the report period, income from main operations, profit from main operations of the
Company is classified according to business segments and products as follows:
Unit: RMB’0000
Main operations classified according to industries
Classified
according to
industries or
products
Operating
revenue
Operating
cost
Gross profit
ratio
(%)
Increase or
decrease of
operating
revenue over
the same period
of last year
(%)
Increase or
decrease of
operating cost
over the same
period of last
year
(%)
Increase or
decrease of
gross profit
ratio over the
same period
of last year
(%)
Fishery 11286.98 9631.07 14.67 1.39 -1.70 2.69
Main operations classified according to products
Tunny 4548.23 3695.98 18.74 -7.38 -16.15 8.49
Among which: the total amount of related transaction that listed company provided9
products and labor service to its subsidiaries was RMB 7,327,700.
(III) Change in main operations and profit structure and reason for the changes in the report
period
Unit: RMB
Items Jan to Jun, 2009 Jan to Jun, 2008 Change (%)
Sales expense 1,432,873.90 3,626,829.79 -60.49
Financial expense 406,878.53 2,089,165.64 -80.52
Asset depreciation
loss -440,778.26 -1,038,547.46 57.56
Investment income 0.00 330,596.54 -100.00
Operating profit 5,203,008.96 -1,931,708.36 369.35
Non-operating
income 4,707,724.29 18,324,220.01 -74.31
Non-operating
expenditure 32,194.03 385,950.19 -91.66
Total profit 9,878,539.22 16,006,561.46 -38.28
Net profit 9,878,539.22 15,996,897.71 -38.25
Reasons for changes:
1. Sales expense for this report period has decreased by 60.49% over the same period of
last year, mainly due to that Haiyan Branch calculated the freight yielded by selling fishery
goods in cost in this report period, while for the same period of last year, it was calculated
in sales expense.
2. Financial expense for this report period has decreased by 80.52% over the same period
of last year, mainly due to that: the Company decreased expenditure for interest since it
returned the bank loans; interest income from pledge deposit increased; exchange loss
decreased since the exchange rate fluctuated slightly.
3. Asset depreciation loss for this report period has increased by 57.56% over the same
period of last year, mainly due to that: in the same period of last year, the inventories of
period-begin were sold out, so the inventory depreciation loss was switched back.
4. Investment income for this report period has decreased by 100% over the same period of
last year, mainly due to that the investment income of the same period of last year all came
from subscribing new shares transfer, while no such business was carried out in this report
period.
5. Operating profit for this report period has increased by 369.35% over the same period of
last year, mainly due to that operating cost decreased for fuel price fell, and the Company
decreased administration expense and period expense.
6. Non-operating income for this report period has decreased by 74.31% over the same
period of last year, mainly due to that the Company received less fuel subsidy from the
government than that of last year.
7. Non-operating expenditure for this report period has decreased by 91.66% over the same
period of last year, mainly due to that the Company donated for the earthquake disaster and10
paid off pension for sailors in the same period of last year.
8. Net profit for this report period has decreased by 38.25% over the same period of last
year, mainly due to that governmental subsidy for fuel decreased over the same period of
last year.
(IV) Explanation on assets structure and its change in the report period
Unit: RMB
Item Jun 30th of 2009 Dec 31st of 2008 Change (%)
Monetary assets 43,487,914.99 74,452,404.48 -41.59
Accounts paid in advance 4,097,067.07 6,868,073.62 -40.35
Other receivable 5,613,502.13 3,886,607.26 44.43
Short-term loans 28,000,000.00 70,003,800.00 -60.00
Account payable 44,813,873.26 62,182,658.42 -27.93
Account received in
advance
379,863.72 2,740,134.66 -86.14
Tax payable 566,410.13 -1,178,440.82 148.06
Conversion margin in
foreign currency report
184,549.09 547,477.12 -66.29
Reasons for changes:
1. Monetary assets of period-end of this year has decreased by 41.59% over that of
period-end of last year, mainly due to that Yantai Grocery Company and HIC Company
returned bank loans in this report period.
2. Accounts paid in advance of period-end of this year has decreased by 40.35% over that
of period-end of last year, mainly due to that the account paid by Haiwei Branch for fishery
access had been transferred into cost in this report period.
3. Other receivable of period-end of this year has increased by 44.43% over that of
period-end of last year, mainly due to that HIC Company increased indemnity receivables
from insurance company in this report period.
4. Short-term loans of period-end of this year has decreased by 60% over that of period-end
of last year, mainly due to that Yantai Grocery Company and HIC Company returned bank
loans in this report period.
5. Account payable of period-end of this year has decreased by 27.93% over that of
period-end of last year, mainly due to that Yantai Grocery Company paid off account
payable for raw materials in this report period.
6. Account received in advance of period-end of this year has decreased by 86.14% over
that of period-end of last year, mainly due to that the account for goods received by Yantai
Grocery Company in advance from customers was confirmed as operating income in this
report period.
7. Tax payable of period-end of this year has increased by 148.06% over that of period-end
of last year, mainly due to that the sales tax of value-added tax for selling goods by Yantai
Grocery Company increased in this report period.
8. Conversion margin in foreign currency report of period-end of this year has decreased by
66.29% over that of period-end of last year, mainly due to the comparatively big change in
exchange rate for US dollar converting to RMB in the same period of last year.
(V)Change in constitution of cash flow and reasons for the change in the report period
Item Jan. to Jun., 2009 Jan. to Jun., 2008 Change (%)11
Net cash flows arising from operating activities: 24,228,719.70 3,356,723.00 621.80
Including: Cash received from selling commodities and
providing labor services
101,115,502.72 106,632,558.86 -5.17
Written-back of tax received 2,689,668.31 725,024.86 270.98
Other cash received concerning operating activities 18,170,338.95 18,301,443.02 -0.72
Minus: 1. Cash paid for purchasing commodities and
receiving labor service 72,943,945.68 84,974,805.26 -14.16
2. Cash paid to/for staff and workers 15,682,054.54 20,456,508.85 -23.34
3. Taxes paid 1,127,216.05 1,861,198.52 -39.44
4. Other cash paid concerning operating activities 7,993,574.01 15,009,791.11 -46.74
Net cash flows arising from investing activities: -1,853,227.11 -7,350,284.68 -74.79
Cash received from recovering investment 551,770.00 -100.00
Cash received from investment income 330,596.54 -100.00
Net cash received from disposal of fixed, intangible
and other long-term assets 1,773,855.00 -100.00
Minus: 1. Cash paid for purchasing fixed, intangible
and other long-term assets 1,853,227.11 9,438,676.22 -80.37
2. Cash paid for investment 567,830.00 -100.00
Net cash flows arising from financing activities: -55,339,982.08 8,302,261.45 -766.57
Cash received from loans 46,020,000.00 66,941,750.00 -31.25
Minus: Cash paid for repaying debts 88,025,150.00 24,971,750.00 252.50
Cash paid for dividend and profit distributing or
interest paying 1,334,832.08 2,067,738.55 -35.44
Net increase in cash and cash equivalent -32,964,489.49 4,308,699.77 -865.07
Reasons for changes:
1. Net cash flows arising from operating activities of the Company in this report period has
increased by 621.80% compared to the same period of last year, which was mainly due to
that: export drawback received by Yantai Grocery Company increased; current account
paid in this report period decreased and the employees’ salary for 2007 had been paid off in
the same period of last year.
2. Net cash flows arising from investing activities of the Company in this report period has
increased by 74.79% compared to the same period of last year, which was mainly due to
that investment with fixed assets decreased in this report period.
3. Net cash flows arising from financing activities of the Company in this report period has
decreased by 766.57% compared to the same period of last year, which was mainly due to
that interest decreased since bank loans were returned in the report period.
(VI)Operation and performance of the main controlling subsidiaries of the Company
Marine HIC Yantai Grocery
Total assets 23,068,728.18 90,631,553.89 151,596,268.19
Net assets 13,848,499.33 71,667,096.91 74,267,076.07
Registered capital 22,505,600.00 12,476,146.00 75,593,300.00
Equity proportion (%) 100.00 100.00 100.00
Investing amount 22,505,600.00 12,476,146 75,593,300.00
Business character and main
product or service
Undertake to
transporte
international
Self-running
business of
refrigerated
Freezing, refrigerating,
processing and sales of
marine products, birds12
shipping,
refrigeration,
marine products
transportation and house animals, and
fruits and vegetables,
etc.
Operating income 9,270,182.66 14,308,767.12 42,354,532.42
Operating profit -501,204.80 3,495,908.99 116,021.33
Net profit -531,508.80 3,495,908.99 132,535.30
(VII)In the report period, the Company’s investment income which influences the net profit
of the Company over 10% (10% included) existed in none of its share-join companies.
(VIII)Problems and difficulties in operation
1. The fishing products received a great decline in price in international market. Though
fishing quantity increased, profit was not raised distinctly.
2. The international market for processed export products was still not so optimistic, which
was not favorable for the Company to develop this industry recently.
3. It remained hard for financing. Development for integrated scale was absolutely
restricted by limited fund.
4. There were lots of pirate activities in part fishing areas, thus the production and
operation of the Company were influenced.
5. Staff expense increased, which meant increase in operation cost.
III. Investment
(I)In the report period, the Company didn’t raise proceeds to invest projects and there were
no raised proceeds in last report period used till the report period.
(II)In the report period, there was no significant application of project invested with the
non-raised proceeds.
IV. The Company has never disclosed profit forecast and annual operation plan in periodic
report or other public notice.13
Section VI. Significant Events
I. Administration of the Company
In order to guarantee and improve the administration level of the Company, in the report
period, the board of directors strictly accorded with the requirements of laws and
regulations, including the Company Law, Securities Law, Governing Rules of Listed
Company and Stock Listing Rules of Shenzhen Stock Exchange, continued to perfect
corporate governance structure, standardize operation mechanism, prevent production and
operation risk, and the actual administration of the Company was basically accorded with
the requirements of relevant documents issued by CSRC.
In the future, the Company would re-examine and standardize the administration of the
Company in irregular time, to constantly perfect the administration level and improve the
core competition of the Company, and make a solid basis for the persistent and stable
development in the future.
II. Implementation of 2008 Profit Distribution Plan
The Company did not distribute profits nor convert public reserve into share capital in
2008.
III. 2009 Semi-annual Distribution Preplan
The Company would neither distribute profits nor convert public reserve into share capital
in the semi-annual of 2009.
IV. Material lawsuits and arbitrations
In the report period, there was no material lawsuit and arbitration.
V. Material assets acquisitions or sell-offs
There was no purchase or sale of material assets in the report period.
VI. Material related transactions
There was no material related transaction in the report period.
VII. Significant contracts and contract implementation14
(I) No material entrusting, contracting or leasing of assets by the Company to others or by
others to the Company happened in the report period or in the past but lasting into the
period.
(II) No material cash assets management was entrusted by the Company in the report
period or in the past but lasting into the period.
(III) Guarantees
1. In the report period, the Company provided comprehensive credit authorization of RMB
20 million – half of the comprehensive credit authorization of RMB 40 million received
from Jinan Branch of China Minsheng Banking Co., Ltd. to the subsidiary –Yantai Grocery
Co., Ltd. for trade finance. As the requirement of bank, the Company provided the joint
liability guarantee for the aforesaid credit authorization, with time limit of two years. Till
the end of the report period, the Company totally provided external guarantees of RMB 70
million.
2. Independent opinion issued by independent directors Mr. Hu Yuanmu, Mr. Jiang Lu and
Mr. Xu Haifeng
Strictly according to the requirements of relevant regulations of Guiding Opinion on
Establishing Independent Director Policy in Listed Company, Stock Listing Rules of
Shenzhen Stock Exchange and Notice on Standardizing External Guarantee of Listed
Company (ZJF(2005)No.120), based on independent judgement, we made careful
comprehension and inspection over capital occupancy of related parties and the
accumulated as well as current external guarantee of the Company, then we made the
following special explanation and issued the independent opinion:
(1) Capital occupancy of related parties of the Company
In the report period, no controlling shareholders and their related parties occupied capital of
the Company.
(2) External guarantee of the Company
The Company was available to be in strict accordance with the Articles of Association and
Management System of External Guarantee, standardizing the external guarantee and
strictly controlling risk of external guarantee.
In the report period, the Company did not provide guarantee for shareholders, actual
controllers and related parties.
In the report period, the total external guarantee amounted to RMB 70 million, among which
the guarantee for its controlling subsidiaries amounted to RMB 20 million, taking 20.06% of
the net assets of Jun. 30, 2009.
It was known that the Company and Shandong Aviation Group Co., Ltd. together offered
ensuring guarantee for two long-term loans totaling to RMB 50 million borrowed by its
former subsidiary, Qingdao Double Whale Pharmaceutical Co., Ltd. (the equity was
transferred in Aug., 2003), which was transferred as external guarantee due to sales of its
equity. The Company highly thought of the work of guarantee relief, constantly negotiated
about the plan for guarantee relief and the fulfilling with Double Whale Pharmaceutical,
Shenzhen Jingshen Investment and bank to discuss the procedure matters about equity
transfer. Till now, Double Whale Pharmaceutical is still actively negotiating with relevant
department of the government about details of estimation, price making and relocation of the
old factory which is in the district of house removal, in order to sign relevant agreement as15
soon as possible. Whereas Double Whale Pharmaceutical operated normally, reached an
agreement on loan repayment with Agriculture Bank of China and other banks, and
Agriculture Bank of China did not required the Company and Shandong Aviation to fulfill
relevant guarantee liability, therefore, we thought that the potential liability dissatisfied the
qualification to confirm as projected liability. At the same time, we also urged the Company
to deal with relevant procedure of guarantee relief as soon as possible, and would always
focus on the development of the proceedings.
VIII. Commitment
There is no commitment of the Company in the report period.
IX. In the report period, the Company, the directors, the supervisors, senior executives,
shareholders of the Company together with actual controllers haven’t received investigation
from the authorized department, forceful measure from justice and inspection department,
been sent to justice organization or asked for criminal responsibility, inspection and
administrative penalty from CSRC, or received no access to securities market, public
criticism, administrative penalty from other administration department if being recognized
as inappropriate people or public criticism by Shenzhen Stock Exchange.
X. Other material events and its influences, and analysis explanations on its solutions
There was no other material event.
XI. Registration form for receiving research, communication and interview in the report
period.
In the report period, the Company received individual investor by receiving and answering
calls for communications, there were no such situations as selectively or privately disclose,
reveal or leak significant information which is not yet published publicly to specific objects
(organization investors and fund). Partly estimated, 20 times receiving calls from individual
investors are made on the production and operation of the Company they concerned.
Date Place Way
The received
parties
Contents discussed and materials
were supplied
Mar. 5, 2009
Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
Mar. 6, 2009
Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
Apr. 1, 2009
Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
Apr. 27, 2009
Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
Jun. 18, 2009
Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
XII. Index of information on other significant events
In the report period, all the important events of the Company were published on China
Securities Journal, Hong Kong Wen Wei Po and Juchao information website16
http://www/cninfo.com.cn. Details are as follows:
Notice No. Content of notice Time
2009-001 Notice on Resolution of the 15th Meeting of the 3rd Board Mar. 3, 2009
2009-002
Notice on Resolution of the 8th Meeting of the 3rd
Supervisory Committee
Mar. 3, 2009
2009-003 Notice on Holding the 2008 Shareholders’ General Meeting Mar. 3, 2009
2009-004 Summary of the Annual Report of 2008 Mar. 3, 2009
2009-005
Notice on Resolution of the 2008 Shareholders’ General
Meeting
Apr. 1, 2009
2009-006 Notice on Resolution of the 16th Meeting of the 3rd Board Apr. 27, 2009
2009-007 Summary of the 1st Quarterly Report of 2009 Apr. 27, 2009
2009-008 Notice on Providing Guarantee for Subsidiary Apr. 27, 2009
2009-009
Notice on holding Unveiling Ceremony for Tunny Trading
Center in Subsidiary
Jun. 18, 2009
Section VII. Financial Report (Un-audited)
I. Accounting statement (attached)
II. Notes to accounting statements
SHANDONG ZHONGLU OCEANIC FISHERIES CO., LTD
Notes to the Financial Statements
(For Semi-annual Year 2009)
(All amounts are stated in RMB Yuan unless otherwise stated)
I. Company profile.
Shandong Zhonglu Oceanic Fisheries Co., Ltd. (the “Company”) was incorporated as a joint
stock limited company in the People’s Republic of China on July 30, 1999 according to the
documentation of Lu Ti Gai Zi [1999] No.85 issued by Shandong Development and Reform
Commission, and the holding company of the Company is Shandong Fisheries Enterprise
Group General Corporation. On June 26, 2000, the Company issued 120 million domestic
listed foreign shares (B shares) to foreign investors with face value of one RMB Yuan per
share according to the documentation of Zheng Jian Fa Xing Zi [2000] No.82 issued by the
China Securities Regulatory Commission. The B shares have been listed on the Shenzhen
Stock Exchange since July 24, 2000. On August 22, 2000, by the Company’s authorization,
lead underwriters fully exercised the 15% over-allotment option and issued 18 million B
shares to foreign investors with face value of one RMB Yuan per share, and then the
Company's total issued share capital is 266,071,320.00 Yuan.
Since year 2003, 125,731,320 state-owned legal person shares (occupying 47.25% of the total
share capital of the Company) held by Shandong Fisheries Enterprise Group General
Corporation (“Fisheries Group”) have been frozen by the judiciary, including: A. Fisheries
Group provided guarantee for the loan of 11,700,000 Yuan for a subordinate company, but
the subordinate company failed to repay the loan on time, so Shandong Yantai Intermediate
People's Court froze 8,000,000 shares (occupying 3% of the total share capital). B.
Fisheries Group borrowed 73,580,680 Yuan from the Agricultural Bank of China Jinan Lixia
branch, and Jinan Lixia Court froze 80,000,000 shares (occupying 30.07% of the total share17
capital).
On December 10, 2006, 88,000,000 shares held by Fisheries Group were auctioned publicly.
According to the auction transaction confirmation (Lu Yin Pai Cheng Zi [2006] No.96) of
Shandong Silver Star Auction Ltd., Shandong State-owned Assets Investment Holdings Ltd.
bought the shares at the price of 48,400,000 Yuan. Holding 33.07% of the total share capital,
Shandong State-owned Assets Investment Holdings Ltd. then became the largest shareholder
of the Company On June 20, 2007; relevant transfer procedures have been completed.
Fisheries Group borrowed 73,344,932 Yuan from Bank of China Jinan branch (the creditor of
the loan was changed to China Xinda Asset Management Corporation from Bank of China in
2004), and Shandong Higher People's Court froze 37,731,320 shares (occupying 14.18% of
the total share capital). On June 7, 2005, the above 37,731,320 shares were auctioned
publicly, According to the auction transaction confirmation (Lu Rui Cheng Zi [2005] No.013)
of Shandong Lu Rui Feng Auction Ltd., Shandong Luxin Investment Holdings Ltd. bought
the shares at the price of 8,760,000 Yuan. On February 2, 2007, relevant transfer procedures
have been completed.
Company address：43 Heping Road, Jinan, Shandong Province, the PRC.
Operating scope: marine and oceanic fishing; aquatic products breeding, processing and
marketing; merchandise import and export business within approved scope; ice machine
manufacture and sale; refrigeration equipment manufacturing, installation, maintenance;
refrigeration; load and unload services; housing lease.
II. Accounting policies, accounting estimates and error correction of previous years
1. Announcement about compliance with Enterprises Accounting Standards
The Company announces that: the Company’s financial statements prepared in accordance
with Notes “III. Preparation basis of financial statement” comply with the requirements of the
Enterprises Accounting Standards, and they fairly present the financial position, operation
result, cash flow and other relevant information of the Company.
2. Preparation basis of financial statement
Preparation of the financial statements is based on going concern postulate.
3. Fiscal year
The financial year of the Company is from January 1st to December 31st of each calendar
year.
4. Reporting currency
The Company’s reporting and presentation currency is the Renminbi (“RMB”).
5. Accounting measurement characters
The Company measures financial statements’ items according to stated measurement
characters, and measurement characters are not changed during the report period. The
Company uses history cost commonly for the measurement of accounting factors. When the
Company uses replacement cost, net realizable value, net value and fair value based on
assured amounts that could be obtained and measured reliably.
6. Cash equivalents
Cash equivalence is that the Company holds short-term (expire within 3 months of the
purchasing day), high-liquidity, easy to convert to known amount of cash and low-risk of18
changing in value of investment.
7. Foreign currency transactions and translation
i. Foreign currency transactions
Foreign currency (currency other than the reporting currency) transactions are translated into
reporting currency at spot exchange rates quoted by the People’s Bank of China prevailing on
the day in which the transactions take place. Monetary items are adjusted according to spot
exchange rates at the balance sheet date. The exchange balance on foreign currency shall be
recorded into current profit and loss. Foreign currency of non-monetary items measured with
history cost is translated into reporting currency at spot exchange rates on the occurrence date.
Foreign currency of non-monetary items measured with fair value are translated into
reporting currency at spot exchange rates of fair value confirming date, the difference is
recorded as the changes in the profit and loss of fair value.
(2) Translating of foreign financial statement
a) Monetary assets and liabilities denominated in foreign currencies at the balance
sheet date are restated into the reporting currency using the spot exchange rates at
that date. Among the equity items, all items are translated into reporting currency
at spot exchange rates on the occurrence date except the item of undistributed
profits.
b) Income Statement items are translated into reporting currency at spot exchange
rate on the occurrence date.
c) The exchange difference from translation of financial statements denominated in
foreign currency is included in the equity and presented individually.
d) Cash flow Statement items are translated into reporting currency at spot exchange
rate on the occurrence date. Change in cash due to change in exchange rate should
be as adjusted item and presented individually.
8. Financial instruments
(1) Recognition and derecognizing of financial instruments
Financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
When an enterprise becomes a party to a financial instrument, it shall recognize a financial
asset or financial liability.
The financial asset should be considered for derecognizing when it meets one of the
following two conditions: (1)when the right to collect the cash flow from a financial asset is
termination; (2) The financial assets is transferred and conform to the termination condition19
of Enterprises Accounting Standards No.23—transfer of financial asset.
All or part of the current obligation to the financial liabilities are terminated, and then
derecognize financial liability or part of it.
(2) Classification of financial assets
Financial assets shall be classified into the following four categories when they are initially
recognized:
(a) Financial assets measured at fair value through profit or loss
The financial assets which are measured at their fair values and the variation of which is
recorded into the profits and losses of the current period, including available for sale financial
assets and designed as at fair value through profit or loss. Available for sale financial assets
comprise financial assets which can be sold in the short term and other derivatives. An
enterprise shall make subsequent measurement on these financial assets according to their fair
values and any realized and unrealized variation is recorded in the current profits and losses.
(b) held-to-maturity investments
Held-to-maturity investments, refers to a non-derivative financial asset with a fixed date of
maturity, a fixed or determinable amount of price and which the enterprise holds for a definite
purpose or the enterprise is able to hold until its maturity but except the one which has been
reclassified as other non-derivative financial asset. It adopts actual interest rate method and
makes subsequent measurement in accordance with the amortized cost. Its derecognizing and
impairment or amortization should be recorded into current profit and loss.
(c) Loans and account receivables
Loans and receivables are not in an active market quotation, the recovery in fixed or
determinable amount of non-derivative financial assets. An enterprise shall make subsequent
measurement on these financial liabilities on the basis of the post-amortization costs by
adopting the effective interest rate method, its derecognizing and impairment or amortization
generated profits and losses are included in the current period profit and loss.
(d) available-for-sale financial assets
Available-for-sale financial assets, refer to the initial recognition was designated as
available-for-sale of non-derivative financial assets, and have not been classified as the above
three categories of non-derivative financial assets. An enterprise shall make subsequent
measurement on these financial assets on the basis of fair value. Its premium discount
using the effective interest method for amortization and recognized as interest income; its fair
value changes recognized as capital reserve, in the termination of the investment or
impairment happened, write off the equity corresponding part from the financial asset directly
and recorded in current period profit and loss.
(3) Classification of financial liabilities
Financial liabilities shall be classified into the following two categories when they are
initially recognized:
（a） Financial liabilities measured at fair value through profit and loss
The financial liabilities which are measured at their fair values and of which the variation is
included in the current profits and losses, including available for sale financial liabilities and
the designated as financial liabilities which are measured at their fair values and of which the
variation is included in the current profits and losses. An enterprise shall make subsequent20
measurement on these financial liabilities according to their fair values and any realized and
unrealized variation is recorded in the current profits and losses.
(b) Other financial liabilities
An enterprise shall make subsequent measurement on these financial liabilities on the basis of
the post-amortization costs by adopting the effective interest rate method
（4）Transaction costs
Transaction costs with regard to financial assets or financial liabilities measured at fair value
through profit and loss are directly recorded in the current period profit and loss account.
Transaction costs related to other types of financial assets or financial liabilities are included
in the amount of its initial recognition.
（5）Determination of the fair value of main financial assets and financial liabilities
As for the financial assets or financial liabilities for which there is an active market, the
quoted prices in the active market shall be used to determine the fair values thereof. Where
there is no active market for a financial instrument, the enterprise concerned shall adopt value
appraisal techniques to determine its fair value. The value appraisal techniques mainly
include the prices adopted by the parties, who are familiar with the condition, in the latest
market transaction upon their own free will, the current fair value obtained by referring to
other financial instruments of the same essential nature, the cash flow capitalization method
and the option pricing model, etc.
（6）Impairment of financial assets
The company shall carry out an inspection, on the balance sheet day, on the carrying
amount of the financial assets other than those measured at their fair values and of which
the variation is recorded into the profits and losses of the current period. The objective
evidence that confirm the impairment has been taken place refers to the event actually
occurred after the initial recognition, which has adverse effect on the future cash flow and
the amount can be measured reliably.
An impairment test shall be made on the financial assets with significant single amounts. If
there is objective evidence that is the impairment has been taken place, then recognize the
impairment loss and recorded into profit and loss account in the current period.
(a) Financial asset carried at amortized cost
If there is objective evidence to confirm the impairment has been taken place, the carrying
value of the financial asset will decrease to the present value of estimated future cash flow.
The total decrease amount is recorded into the profit and loss account of the current period.
Present value of estimated future cash flow is discounted by using the original effective
interest rate, and should be consider the value of relevant collateral.
If there is objective evidence confirm that the value of impaired financial assets is recovered,
then the original recognized impairment loss should be reversed through profit and loss
account in the current year. However, the carrying value after reversing impairment loss
should not exceed the amount of amortized cost as if there is no impairment taken place.
(b) Financial asset carried at cost
If there is objective evidence confirm that the financial asset has been impaired, the
difference between the book value of the financial asset and the present value of estimated
future cash flow discounted at market rate of return at that time will be included in the current21
profits and loss. Once confirm the impairment loss, it shall not be reversed.
(c) Available for sale financial asset
If there is objective evidence confirm that the impairment of available for sale financial asset
has been taken place, the accumulated loss from decreasing in the fair value which originally
recorded in the owner’s equity should be transferred into current period profit and loss. The
transferred accumulated loss is the difference between the historical cost deducted receipt
capital and amortized amount and the current fair value and the balance after deducting
impairment loss which has been recorded into profit and loss account.
For recognized impairment loss of available for sale financial asset, increase in fair value in
the subsequent accounting period ,the original recognized impairment loss can reversed into
current profit and loss account. The impairment of available for sale equity instrument can
not be reversed through profit and loss account.
(7) Transfer of financial assets
A transfer of financial assets refers to an entity transfers a financial assets to the other party
(the transferee) other than the issuer of financial asset.
The company has transferred nearly all of the risks and rewards related to the ownership of
the financial asset to the transferee, it shall derecognize the financial asset. If it retained
nearly all of the risks and rewards related to the ownership of the financial asset, it shall not
derecognize the financial asset.
Where an enterprise does not transfer or retain nearly all of the risks and rewards related to
the ownership of a financial asset, it shall deal with it according to the circumstances as
follows, respectively: a. If it gives up its control over the financial asset, it shall stop
recognizing the financial asset; b. If it does not give up its control over the financial asset, it
shall, according to the extent of its continuous involvement in the transferred financial asset,
recognize the related financial asset and recognize the relevant liability accordingly.
9. Accounts receivable and bad debts
i. Account receivable without related party transaction
At the end of the period, impairment test shall be made on individual accounts receivable
with significant amounts. If there is objective evidence that they have been impaired, bad
debt loss shall be recognized and provision for bad debts shall be made base on the
differences between book values and the present value of estimated future cash flows. For
those individual accounts receivable without significant amounts at the end of the period,
along with those accounts receivable that have been tested individually but not impaired, the
Company classifies them in line with similar credit risk characteristics into several groups,
and make a specific percentage of bad debts provision on the accounts receivable balances at
balance sheet date. On the basis of the actual loss rate of receivable accounts, with same or
similar credit risk characteristics of accounts receivable package in previous year, the
Company also considers current situation and determine the percentage of bad debt provision.
ii. Here is the Company’s bad debts provision policy:
Age Proportion22
Within 6 months 5%
6 months to 1 year 10%
1 year to 2 years 30%
2 years to 3 years 50%
Above 3 years 100%
For any well-established evidence shows that there exist obvious differences of recoverable
of the receivables, provision of bad debt is recognized in individual method.
10. Inventories
(1) Inventories category: raw materials, low value and easily used up materials, work in
progress, working in process –outsourced and finished goods.
(2) Valuation methods of inventories: raw materials, working in process and finished goods
are stated at actual cost. The use and the sales of inventories are valued at weighted average
method.
The issue of low value and easily used up materials, wrap page amortize twice of 50% each
time.
(3) The company adopts perpetual inventory system.
(4) For the inventories at the end of the year, the evaluation criteria should base on the
lower value between the cost of inventory and the net value that can be converted to cash.
The provision for inventory impairment loss is drawn from margin of individual
inventory’s cost higher than the net value that can be converted to cash. The net value that
can be converted to cash is refers to the value after estimated the selling price subtracts the
estimated finished cost and the estimated sale expense in the Company’s normal operating
process.
Inventory impairment loss provision for finished goods is made basing on single item, and
classification for raw materials.
11. Investment property
Investment property includes: a land use right that is leased out; a land use right held for
transfer upon capital appreciation; a building that is leased out.
The initial measurement of the investment property shall be made at its cost. An enterprise
shall make a subsequent measurement to the investment property through the cost pattern.
The Company calculates depreciation and impairment of investment property as the same
method of fixed assets.
At the balance sheet date, where any evidence shows that there is possible impairment of
investment property, should take impairment test and make provision for impairment loss
individually.
12. Fixed assets
(1) Recognition of fixed assets
(a) Fixed assets are tangible assets that are held for use in the production or supply of goods23
or services, for rental to others, or for administrative purpose, and have useful lives more
than one accounting year.
The cost of an item of fixed assets shall be recognized as an asset if, and only if (a) it is
probable that future economic benefits associated with the item will flow to the entity; and
(b) the cost of the item can be measured reliably. The subsequent expense related with the
fixed asset when it meet the character of recognition of fixed asset, it will be recorded in
the cost of fixed asset, or it will be recorded as expense through current profit and loss.
(b) Fixed assets are recorded at cost of acquisition.
For acquired asset, the cost of a fixed asset comprises its purchase price, related taxes and
any costs directly attributable to bring the asset to the location and condition necessary for
it to be capable of operating, such as transport fees and installation fees and etc. The cost of
a self-constructed asset comprises any costs necessarily related to the construction prior to
bring it to the condition for it to be capable of operating. The cost of the fixed assets that
exchanged from non-monetary transaction, debt restructuring, business combination and
financial lease are recognized according to ‘Enterprises Accounting Standard
No.7—Non-monetary exchange of fixed assets’,’ Enterprises Accounting Standard
No.12—debt restructuring’,’ Enterprises Accounting Standard No.20—business
combination’ and ‘Enterprises Accounting Standard No.21— Lease’
(2) Subsequent measurement
The depreciation of fixed assets adopts average method. The estimated useful lives,
expected residual value and annual depreciation rate of various types fixed assets are listed
as follows:
Category
Estimated useful lives
(years)
Expected residual
value (%)
Annual depreciation
rate (%)
Buildings 20—40 3—5 2-5
Vessels 15—20 3—5 5-6
Machinery and fishing
equipment
8—20 3—5 5-12
Furniture and office
equipment
5 3—5 19-19
Motor vehicles 5 3—5 19-19
Fixed assets depreciated on a monthly basis. For increased asset in the current month, the
depreciation of an asset begins from next month. For decreased asset in the current month,
the depreciation of an asset terminates from next month.
An enterprise shall, at least at the end of each year, have a review on the useful life, expected
residual value and the depreciation method of the fixed assets, and adjust them when
necessary.
At the balance sheet date, there are signs that fixed assets impaired, according to the stated
asset impairment method to make impairment provision of fixed assets.24
(3) Finance leased asset
(a) Where a lease satisfies one or more of the following criteria, it shall be recognized as
a finance lease:
i. The ownership of the leased asset is transferred to the lessee when the term of lease
expires;
ii. The lessee has the option to buy the leased asset at a price which is expected to
be much lowers the fair value of the leased asset at the date when the option
becomes exercisable.
iii. The lease term covers the major part of the use life of the leased asset (above
75%)
iv. at the inception of the lease the present value of the minimum lease payments
amounts to at least substantially all of the fair value of the leased asset( above
90%); and
v. The leased assets are of such a specialized nature that only the lessee can use
them without major modification.
(b) At the commencement of the lease term, lessees shall recognize finance leases as
assets in their balance sheets at amounts equal to the fair value of the leased property or, if
lower, the present value of the minimum lease payments, each determined at the inception
of the lease. The provision of depreciation is the same as fixed assets.
(4). idle fixed assets
Due to natural disasters, the fixed asset has been stop in use for six months can be
recognized as idle fixed assets (except seasonal discontinuation).
Idle fixed assets and consistent with other fixed assets depreciated in the same method.
13. Construction-in-progress
Construction-in-progress represents buildings and plant under construction and machinery
and equipment under installation and testing, and is stated at cost. This includes cost of
construction, plant and equipment and other direct costs plus borrowing costs which include
interest charges and exchange differences arising from foreign currency borrowings used to
finance these projects during the construction period, to the extent these are regarded as an
adjustment to interest costs.
Construction in progress is transferred to fixed assets when the project is substantially
ready for its intended use.25
For any evidence of impairment of the construction in progress at balance sheet date, the
provision of impairment loss is made as the method used in fixed asset.
14. Intangible assets
(1) Recognition and initial measurement of intangible assets
The Company's intangible assets include: land use rights, proprietary technology, and
non-patent technology etc...
The initial measurement of intangible assets is based on cost.
(2) Subsequent measurement
Amortization of intangible assets: The depreciable amount of intangible assets with finite
useful lives shall be allocated on a systematic basis over its useful life and it is recorded
into current period profit and loss. Unable to reasonably determine the expected way of
realization, then using straight-line amortization method.
The company shall, at least at the end of each year, review the amortization period and the
amortization method of the intangible assets with finite useful lives and adjust them when
necessary.
Unforeseen economic benefits live of intangible assets as intangible assets with infinite useful
lives. Intangible assets with indefinite useful lives shall not be amortized, but required an
annual impairment review and review of useful lives.
For any evidence of impairment of the intangible asset at balance sheet date, the provision
of impairment loss is made as the method used in fixed asset.
(3) The estimation of useful life
For intangible assets with finite useful lives, the Company shall consider the following
factors normally when estimating its useful life:
i. the life cycle of the product produced by the assets, getting the information of
similar assets’ life;
ii. estimation of technique, techniques and other aspects in the current and future
trends;
iii. the demand of the market of product produced by the assets or services provided by
the assets;
iv. expected action taken by current or potential competitors;
v. expected maintenance costs for maintaining the economic benefits of the assets, and
the company’s expected payment ability to the costs;
vi. the relevant legal provisions or similar restrictions to the assets’ controlling term,26
such as privileged using period and rental period;
vii. The relationship with the useful life of the company’s other assets.
(4)Research and development phase
Research and development expenses arising from internal project shall be recorded into
current period profit and loss account.
An intangible asset arising from development phase of an internal project shall be recognized
if, and only if, an entity can demonstrate all of the following:
(a) The technical feasibility of completing the intangible asset so that it will be
available for use or sale.
(b) Its intention to completing the intangible asset and use or sell it.
(c) How the intangible asset will generate probable economic benefits. Among other
things, the entity can demonstrate the existence of a market for the output of the
intangible asset or the intangible asset itself or, if it is to be used internally, the
usefulness of the intangible asset.
(d) The availability of adequate technical, financial and other resources to complete
the development and to use or sell the intangible asset.
(e) Its ability to measure reliably the expenditure attributable to the intangible asset
during its development.
15. Impairment of long-term assets
(1) At the end of period, the Company should check carrying amounts of long-term equity
investment, fixed assets, and construction in progress, intangible assets and goodwill, if there
is objective evidence that the asset is impaired, recoverable amount shall be estimated for the
individual asset. If it is not possible to estimate the recoverable amount of the individual asset,
the Company shall determine the recoverable amount of the asset group to which the asset
belongs.
(2) The recoverable amount should base on the higher value between fair value less
disposal expense and present value of estimated cash flow in the future.
(3) The Company determines asset group based on whether cash flow generating from the
asset group is independent with other assets or asset group.
(4) An impairment loss shall be recognized for a cash-generating unit (the smallest group of
cash-generating units to which goodwill or a corporate assert has been allocated) if, and only
if, the recoverable amount of the unit is les than the carrying amount of the unit (group of
units) the impairment loss shall be allocated to reduce the carrying amount of the assets of the
unit (group of units) in the following order:
(a) first, to reduce the carrying amount of any goodwill allocated to the cash-generating
unit(group of units); and27
(b) Then, to the other assets of the unit (group of units) pro rata on the basis of the carrying
amount of each asset in the unit (group of units).
These reductions in carrying amounts shall be treated as impairment losses on individual
assets.
If the impairment loss is recognized, it can not be recovered in the next accounting period.
16. Long-term equity investment
(1) The recognition of initial cost of Long-term equity investment
a) For long-term equity investment obtained through business combinations, the cost is
recognized according to the terms of business combinations.
b) The initial investment cost of a long-term equity investment acquired otherwise than
through a business combination shall be determined as follows: for a long-term
equity investment acquired by cash, the initial investment cost shall be the actual
purchase price has been paid; for a long-term equity investment acquired by the
issue of equity securities, the initial investment cost shall be the fair value of the
securities issued; for a long-term equity investment contributed by an investor, the
initial investment cost shall be the value stipulated in the investment contract or
agreement. For a long-term equity investment acquired though exchanging from
non-monetary transaction, debt restructuring are recognized according to
‘Enterprises Accounting Standard No.7—Non-monetary exchange of fixed assets’
and’ Enterprises Accounting Standard No.12—debt restructuring’.
(2) Subsequent measurement
a) The Company uses cost method for the following conditions: a long-term equity
investment where the investing enterprise can exercise control over the investee, or
the investing enterprise does not have joint control or significant influence over the
investee, the investment is not quoted in an active market and its fair value can’t be
reliably measured.
The Company uses cost method for the investment of subsidiaries, and adjusts it
according equity method when preparing consolidated financial statements. When
using cost method, cash dividends or profit distributions declared by the investee
shall be recognized as investment income in the current period. However, investment
income recognized by the investing enterprise shall be limited to the amount
distributed to it out of accumulated net profits of the investee arising after the
investment was made. Any cash dividends or distributions received in excess of this
amount shall be treated as a recovery of initial investment cost.28
b) When an investing enterprise can exercise joint control or significant influence over
the investee, a long-term equity investment shall be accounted for using the equity
method. When using equity method, after the investing enterprise has acquired a
long-term equity investment, it shall recognized its share of net profits or losses
made by the investee as investment income or losses, and adjust the carrying amount
of the investment accordingly. The carrying amount of the investment shall be
reduced by the portion of any profit distributions or cash dividends declared by the
investee that is attributed to the investing enterprise.
The net losses of the invested entity confirmed by the company, the book value of
the long-term equity investment is extended to reduce to zero, except the
company has the obligation to undertake extra losses. Any change to the owner's
equity other than net profit or loss from invested entity, adjust the book value of
the long-term equity investment and included in the owner's equity, and transfer
to the profits and losses in the current period to the corresponding proportion
when dispose long-term equity investment..
When dispose of the long-term equity investment, the difference between the
book value and the proceeding from disposal is included in the current profits and
losses.
(3) Judgment of common control and significant influence
It can be recognized as common control in accordance with the contract and the consent of
other investors of invested entity who perform important role in financial and operational
decisions.
It can be recognized as significant influence when the company has the right to participate
in financial and operational decision making. But not to control or together with others to
control the decision.
17. Business combination
(1) Business combination involving enterprises under common control
For this kind of business combination, the Company adopts equity method. Assets and
liabilities that are obtained by the absorbing party in a business combination shall be
measured at their carrying amounts, excluding the adjustment of using different accounting
policies, and not be recognized as goodwill. The difference between the carrying amount of
the net assets obtained and the carrying amount of the consideration paid for the combination
shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the
difference, any excess shall be adjusted against retained earnings. The net profit made by the
party being absorbed before the combination shall be presented in the consolidated income
statement.
(2) Business combination not involving enterprises under common control
Where the cost of a business combination exceeds the acquirer’s interest in the fair value of
the acquirer’s identifiable net assets, the difference shall be recognized as goodwill, goodwill
shall be measured at cost less accumulated impairment losses. Where the cost of combination29
is less than the acquiree’s interest in the fair value of the acquiree’s identifiable net assets,
after reassessment, the difference shall be recognized in profit or loss for the current period.
The operation results of the acquiree shall be consolidated since the Company obtains the
controlling rights, until the controlling rights are transferred from the Company.
18. Borrowing costs
(1)Borrowing cost refers to the interest and other related cost since making borrowing, it
includes: interests from loan, amortization of premium and discount, assistant expenses and
exchange difference due to foreign currency loan.
(2) Principle of capitalization and expenses of borrowing cost
The borrowing costs that are directly attributable to the acquisition or production of a
qualifying asset are eligible for capitalization. Other borrowing cost should be recognized
as expenses when incurred through profit and loss account. Qualifying assets are assets
(fixed assets, investment property, inventories, etc.) that necessarily take a substantial
period of time for acquisition, construction or production to get ready for their intended use
or sale.
(a)The capitalization of borrowing costs as part of the cost of a qualifying asset shall
commence when:
①expenditures for the assets are being incurred;
②borrowing costs are being incurred; And
③activities that are necessary to prepare the asset for its intended use or sale are in
progress.
(b) When the qualified asset under acquisition and construction or production is ready for
the intended use or sale, the capitalization of the borrowing costs shall be ceased; then the
borrowing costs incurred shall be recorded into the profits and losses of the current period.
Where the acquisition and construction or production of a qualified asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of
the borrowing costs shall be suspended. The borrowing costs incurred during such period
shall be recognized as expenses, and shall be recorded into the profits and losses of the
current period.
(c) Confirmation of the amount which has been capitalized
During the capitalization period, the amount of interest to be capitalized for each accounting
period shall be determined as follows:
① For a specific-purpose borrowing, the amount of interest to be capitalized shall be the
actual interest expense incurred for the period less temporary deposits interest or
investment income;
②Where funds are borrowed under general-purpose borrowings, the Company shall
determine the amount of interest to be capitalized by applying a capitalization rate to
the weighted average of the excess amounts of cumulative expenditures on the asset
over and above the amounts of specific-purpose borrowings. The capitalization rate30
shall be the weighted average of the interest rates applicable to the general-purpose
borrowings.
19. Contingent liability
A provision shall be recognized when:
(a) An entity has a present obligation as a result of a past event;
(b) It is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation; and
(c) A reliable estimate can be made of the amount of the obligation.
20. Share-based payment
(1)Share-based payment refers to an entity shall recognize the goods or services received or
acquired in a share-based payment transaction when it obtains the goods or as the services
are received. The entity shall recognize a corresponding increase in equity if the goods or
services were received in an equity-settled share-based payment transaction or a liability if
the goods or services were acquired in a cash-settled share-based payment transition.
(2) For equity-settled share-based payment transaction, the entity shall measure the goods
or services received, and the corresponding increase in equity, directly, at the fair value of
the goods or services received, unless that fair value cannot be estimated reliably. If the
entity cannot estimate reliably the fair value of the goods or serviced, the entity shall
measure their value, and the corresponding increase in equity, indirectly, by reference to
the fair value of the equity instruments granted.
(3) For transactions measured by reference to the fair value of the fair value of the equity
instruments granted, an entity shall measure the fair value of equity instruments granted at
the measurement date, based on market prices if available, taking into account the terms
and conditions upon which those equity instruments were granted.
If the market prices are not available, the entity shall estimate the fair value of the equity
instruments granted using a valuation technique to estimate what the price of those equity
instruments would have been on the measurement date in an arm’s length transaction
between knowledgeable, willing parties. The valuation technique shall be consistent with
generally accepted valuation methodologies for pricing financial instruments, and shall
incorporate all factors and assumptions that knowledgeable, willing market participants
would consider in setting the price, such as discount cash flow and option pricing model.
(4)For cash-settled share-based payment transactions, the entity shall measure the goods or
services acquired and the liability incurred at the fair value of the liability.
(5) According to the latest vesting worker to make a best estimate of vested equity
instruments.
21. Revenue recognition
(1) Revenue from the sale of goods shall be recognized only when all of the following
conditions are satisfied:31
i. the enterprise has transferred to the buyer the significant risks and rewards of
ownership of the goods;
ii. the enterprise retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold;
iii. the amount of revenue can be measured reliably;
iv. it is probable that the associated economic benefits will flow to the enterprise;
v. The associated costs incurred or to be incurred can be measured reliably.
(2) Rendering of services
a). when the outcome of a transaction involving the rendering of services can be
estimated reliably, revenue associated with the transaction shall be recognized by
reference to the stage of completion of the transaction at the balance sheet date.
b). at the balance sheet date when the outcome of the transaction cannot be estimated
reliably. Nevertheless, it may be probable that the entity will recover thee transaction
costs incurred. Therefore, revenue is recognized only to the extent of costs incurred
that are expected to be recoverable. When the outcome of a transaction cannot be
estimated reliably and it is not probable that the costs incurred will be recovered,
revenue is not recognized and the costs incurred are recognized as an expense.
(3) Use by others of enterprise assets
A). it is probable that the associated economic benefits will flow to the enterprise;
b). the amount of revenue can be measured reliably.
Interest income is determined in accordance with time and actual interest rate of the
company’s money used by others. The revenue from others use is determined according to
relevant contract or agreement.
22. Income taxes
(1) The company adopts liability method to deal with income taxes.
(2) Income taxes include income taxes for the current period and deferred income taxes.
Current and deferred tax of an enterprise shall be recognized as income or an expense and
included in profit or loss for the current period, except that: income tax arising from a
business combination the Company shall adjust goodwill; income tax arising from a
transaction or event which is recognized directly in owner’s equity shall be charged in
owner’s equity.
(3) A deferred tax asset shall be recognized for deductible temporary differences to the
extent that it is probable that taxable profits will be available against which the deductible32
temporary differences can be utilized, unless the deferred tax asset due to non-business
combination transaction and the transaction affects neither accounting profit nor taxable
profit.
A deferred tax asset shall be recognized for deductible temporary differences to the extent
that it is probable that taxable profits will be available against which the deductible
temporary differences can be utilized.
(4)The company has reviewed the carrying value of the deferred tax asset. The reversal of
deductible temporary differences results in deductions in determining taxable profits of
future periods. However, economic benefits in the form of reductions in tax payments will
flow to the entity only if it earns sufficient taxable profits against which the deductions can
be offset. When there is insufficient taxable profit, the carrying value of deferred tax asset
should be decreased, and until it obtains sufficient taxable profit, it cannot recover the
deducted amount.
23. Government grants
Government grants shall be recognized at fair value on the conditions that the Company can
receive the grant and comply with the conditions attaching to the grant. For a government
grant related to income, if the grant is a compensation for related expenses or losses to be
incurred by the Company in subsequent period, the grant shall be recognized as deferred
income, and recognized in profit or loss over the periods in which the related costs are
recognized. A government grant related to an asset shall be recognized as deferred income,
and evenly amortized to profit or loss over the useful life of the related asset.
24. Consolidated financial statement
Consolidated scope: all controlled subsidiaries
The consolidated financial statement is prepared by parent company, based on the financial
statement of parent and subsidiaries and after adjusting long-term investment in subsidiary
through equity method, in accordance with Enterprises Accounting Standards No.33-
Consolidated financial statement.
25. Accounting policies, accounting estimates and error correction of previous years
None
III.The main tax items
1. VAT
Except for that documented in the following paragraph, the Group’s sale of merchandise
and products is subject to VAT, which is charged on the selling price at a rate of 17%
(normal products) or 13% (agricultural products). An input credit is available whereby
input VAT previously paid on purchases of seafood merchandise and raw materials can be
used to offset the output VAT on sales to determine the net VAT payable.
Pursuant to a government notice issued by the Ministry of Finance, the State Commission
of Customs Duty and the State Administration of Taxation on 10 March 1997, the import of
self-caught seafood is exempted from import VAT, and the VAT treatment on the sale of
self-caught seafood is same as that for self-produced agricultural product that is exempted33
from output VAT. Therefore, the Group’s revenue generated from trading of self-caught
seafood was exempted from VAT.
2. Enterprise income tax (“EIT”)
According to PRC enterprise income tax tentative regulations, the Enterprise income tax
rate of the Company is 25%.
According to a government notice issued by the Ministry of Finance and the State
Administration of Taxation on 20 October 1997, the enterprises which owned a certificate
“Department of Agriculture Deep fishing Enterprises Recognition Certificate” is exempted
from EIT. Therefore, the Group’s revenue generated from trading of self-caught seafood,
marine catching and letting of trawlers and refrigerated vessel were exempted from EIT.
3. Business tax and Surtaxes
The Group is subject to the following surtaxes in the PRC:
The Group is subject to PRC business tax at a rate of 5% of rental income received from
provision of cold storage and 3% from letting of refrigerated vessels within the PRC,
respectively.
City construction tax, a tax levied at 7% of net VAT and business tax payable; and
Education surcharges, a tax levied at 4% of net VAT and business tax payable.
IV. Business combination and consolidated financial statements
1. Basic information of subsidiaries which are in the range of combination
Names of
companies
Registered
place
Corporate
code
Nature of
business
Registered
capital
(RMB)
Operation
range
Actual
investment
amount
Net
investment
balance
Holding
proportion
Voting
right
proportion
Subsidiaries gained
from business
combination under
the same control
Shandong Zhonglu
Oceanic Fisheries
Transportation Co.,
Ltd.
Shandong
Qingdao
16307123-3
Refrigerated
transport
22,505,600
Letting of
refrigerated
vessels and
international
vessel
transportation
22,505,600 22,505,600 100% 100%
Habitat
International
Corporation
Panama
Refrigerated
transport
12,476,146
Self-operation
on the
business of
refrigerated
transportation
12,476,146 12,476,146 100% 100%
Shandong Zhonglu
Oceanic (Yantai)
Food Co., Ltd.
Yantai,
Shandong
72927738-9
Food
processing
75,593,300
Refrigeration.
cold storage
and
processing
and sales of
aquatic
products,
domestic
75,593,300 75,593,300 100% 100%34
animals and
fruits and
vegetables
Subsidiaries gained
from business
combination not
under the same
control
Companies gained
in other way
YAW ADDO
FISHERIES
COMPANY
LIMITED
Ghana
Marine
fishing
4,387.09
Marine
fishing
100%
Note: YAW ADDO FISHERIES COMPANY LIMITED was founded in May 2007,
registered in the Republic of Ghana, with registered capital of USD 645.16.
In April 2008, the Company sold the ship “Zhong Lu Yu 1003/1004” to YAW ADDO
FISHERIES COMPANY LIMITED in Ghana, then the Company adopted the way of
leasing back YAW ADDO FISHERIES COMPANY LIMITED and obtained the legal
fishing permission in Ghana sea area. YAW ADDO FISHERIES COMPANY LIMITED
obtained fishing permission.
The time limit of the leasing is 20 years, from Apr. 1, 2008 to Mar. 31, 2027. During the
period of leasing business, the Company independently operates and assumes sole
responsibility for its profit and losses, which would bring into the consolidated financial
statement of the Company.
2. Rights and interests of minority shareholders
Financial condition
Minority shareholder
assume
Name of shareholder
Net asset Net profit
Right
and
interest
Profit
and loss
Assumed
excess loss of
minority
shareholder
YAW ANIM-ADDO -6,267,681.32 -1,698,907.22
3. Translating the exchange rate of financial statement of foreign subsidiaries
(1) Translating of foreign financial statement
a. Monetary assets and liabilities denominated in foreign currencies at the balance sheet
date are restated into the reporting currency using the spot exchange rates at that date.
Among the equity items, all items are translated into reporting currency at spot exchange
rates on the occurrence date except the item of undistributed profits.
b. Income Statement items are translated into reporting currency at spot exchange rate on
the occurrence date.
c. The exchange difference from translation of financial statements denominated in foreign
currency is included in the equity and presented individually.
(2) Exchange rate35
a. Monetary assets and liabilities denominated in foreign currencies at the balance sheet
date are restated into the reporting currency using the spot exchange rates at that date.
(1:6.8319)
b. Income Statement items are translated into reporting currency at spot exchange rate on
the occurrence date.
V. Main items of consolidated financial statements
1. Monetary funds
Amount in period-end Amount in period-begin
Item Amount of the
original currency
Exchange rate
convert
Equal amount of
RMB
Amount of the
original currency
Exchange
rate
convert
Equal amount of
RMB
Cash 316,698.66 473,823.52
RMB 219,360.45 1.00 219,360.45 73,483.93 1 73,483.93
USD 11,284.20 6.8319 77,092.53 58,575.42 6.8346 400,339.57
JPY
-
0.071117
- 0.27 0.07565 0.02
EUR 2,100.00 9.6408 20,245.68
Bank deposit 28,554,177.65 34,859,540.23
RMB 20,645,796.68 1.00 20,645,796.68 18,248,808.99 1 18,248,808.99
USD 848,065.57 6.8319 5,793,882.89 2,256,980.14 6.8346 15,425,556.46
JPY
29,732,667.00
0.071117
2,114,498.08 15,666,553.60 0.07565 1,185,174.78
Other monetary
funds
14,617,038.68 39,119,040.73
RMB 13,929,936.53 1.00 13,929,936.53 37,839,534.09 1 37,839,534.10
USD 64,139.03 6.8319 438,191.44 58,813.34 6.8346 401,965.65
JPY
3,500,017.00
0.071117
248,910.71 11,600,013.00 0.07565 877,540.98
Total 43,487,914.99 74,452,404.48
Note: 1. In bank deposit, the balance of foreign currency off-shore bank deposit in China
Merchant Bank was USD 546,658.66, which was equal to RMB 3,734,717.30.
2. Balance in the period-end of other monetary funds was RMB 14,617,038.68, including:
guarantee fund of RMB 607,322.92 in Business Hail of Jiefang Road, Qilu Securities Co.,
Ltd.; pledged guarantee fund of RMB 12,000,000.00 over 3 months.
3. Balance in the period-end of monetary fund decreased 41.59% compared with that in the
period-begin, which was mainly due to repayment of bank loan of subsidiaries – Yantai Food
and HIC Company.
2. Accounts receivable
Amount in period-end Amount in period-begin
Item Amount
Proportion
(%) Bad debts reserve Amount
Proportion
(%)
Bad debts
reserve
Single
significant
amount
19,084,057.58 86.15 4,399,432.56 13,934,428.78 63 4,117,635.4536
Single amount
which is not
significant but
has great risk of
credit portfolio
2,412,888.82 10.89 2,412,888.82 2,412,888.82 10.91 2,412,888.82
Other amount
not significant
654,797.90 2.96 8,424.23 5,769,973.61 26.09 288,121.92
Total 22,151,744.30 100.00 6,820,745.61 22,117,291.21 100 6,818,646.19
Note: (1) Single significant amount is the amount that the balance in the period-end is over 1
million; Single amount which is not significant but has great risk of credit portfolio is the
amount with the age of over 3 years. Single significant accounts receivable was listed as
follows:
Name of unit Age Amount
Provision
proportion (%)
Reasons for
provision
Fong Wuey Fishery Co., Ltd.
Within 6
months
8,678,836.46 5.00 Age analysis
SANXINGYANG
Within 6
months
1,892,110.75 5.00 Age analysis
Singapore Zhaoqun
Within 6
months
1,810,983.75 5.00 Age analysis
Japan New Delta
Within 6
months
1,670,972.58 5.00 Age analysis
Asahi Fishery
Within 6
months
1,406,955.32 5.00 Age analysis
PANDA Over 3 years 3,600,962.12 100.00 Age analysis
Total 19,060,820.98
(2) In Single significant amount, there was no amount which was bad debts reserve withdrew
by specific identification.
(3) The balance did not contain any debt owned by major shareholders who own more than
5% of the Company’s share capital.
(4) Age analysis of accounts receivable:
Amount in period-end Amount in period-begin
Age Amount
Proportion
(%)
Provision
proportion
(%)
Bad debts
reserve Amount
Proportion
(%)
Provision
proportion
(%)
Bad debts
reserve
Within 6
months
16,137,893.36 72.85 5 806,894.67 16,103,440.27 72.81 5 804,795.25
6 months – 1
year
10 10
I - 2 years 30 30
2 -3 years 50 50
Over 3 years 6,013,850.94 27.15 100 6,013,850.94 6,013,850.94 27.19 100 6,013,850.94
Total 22,151,744.30 100 6,820,745.61 22,117,291.21 100 6,818,646.1937
(5) Particulars about the top 5 debts were as follows:
Item Amount in period-end Amount in period-begin
Within 6 months 14,052,903.54 10,333,466.66
6 months – 1 year
I - 2 years
2 -3 years
Over 3 years 3,600,962.12 3,600,962.12
Total amount of the top 5 17,653,865.66 13,934,428.78
Proportion in total accounts
receivable 80% 63%
(III) Accounts paid in advance
Amount in period-end Amount in period-begin
Age Amount Proportion (%) Amount Proportion (%)
Within 1 year 4,073,031.18 99.41 6,868,073.62 100
I - 2 years 24,035.89 0.59
2 -3 years 0.00
Over 3 years 0.00
Total 4,097,067.07 100.00 6,868,073.62 100
Note: 1. The balance did not contain any debt owned by major shareholders who own more
than 5% of the Company’s share capital.
2. The balance in period-end in accounts paid in advance decreased 40.35% compared with
that of last year, which was mainly because that Haiwei Company paid fishing fee in advance
which was transferred as cost.
4. Other accounts receivable
Amount in period-end Amount in period-begin
Item Amount
Proportion
(%)
Bad debts
reserve Amount
Proportion
(%)
Bad debts
reserve
Single significant
amount
5,859,758.40 40.21 4,443,182.51 5,514,073.92 41.49 4,887,036.96
Single amount
which is not
significant but
has great risk of
credit portfolio
4,215,337.53 28.92 4,215,337.53 4,221,631.53 31.77 4,221,631.53
Other amount not
significant
4,498,061.02 30.87 301,134.78 3,553,434.41 26.74 293,864.11
Total 14,573,156.95 100.00 8,959,654.82 13,289,139.86 100 9,402,532.60
Note: (1) Single significant amount is the amount that the balance in the period-end is over 1
million; Single amount which is not significant but has great risk of credit portfolio is the
amount with the age of over 3 years. Single significant accounts receivable was listed as
follows:
Name of unit Age Amount Provision Reason for38
proportion (%) provision
Zhongchanjing Investment
Co., Ltd.
Over 3 years 4,260,000.00 100.00 Age analysis
Qingdao Branch, PICCP&C Within 6 months 1,599,758.40 5.00 Age analysis
Total 5,859,758.40
(2) In Single significant amount, there was no amount which was bad debts reserve withdrew
by specific identification.
(3) The balance did not contain any debt owned by major shareholders who own more than
5% of the Company’s share capital.
(4) Age analysis of accounts receivable:
Amount in period-end Amount in period-begin
Age
Amount
Proportion
(%)
Provision
proportion
(%)
Bad debts
reserve
Amount
Proportion
(%)
Provision
proportion
(%)
Bad debts
reserve
Within 6
months
4,710,560.99 32.32 5 235,528.05 2,802,586.19 21.09 5 155,290.85
6 months –
1 year
939,893.93 6.45 10 93,989.39 401,397.72 3.02 10 3,907.41
I - 2 years 360,147.00 2.47 30 108,044.10 322,727.00 2.43 30 121,304.10
2 -3 years 80,923.50 0.56 50 40,461.75 1,280,797.42 9.64 50 640,398.71
Over 3 years 8,481,631.53 58.20 100 8,481,631.53 8,481,631.53 63.82 100 8,481,631.53
Total 14,573,156.95 100.00 8,959,654.82 13,289,139.86 100 9,402,532.60
(5) Particulars about the top 5 debts were as follows:
Item Amount in period-end Amount in period-begin
Within 6 months 2,106,737.55 873,809.00
6 months – 1 year 873,809.00
I - 2 years
2 -3 years 1,254,073.92
Over 3 years 4,260,000.00 498,079.77
Total amount of the top 5 7,240,546.55 2,625,962.69
Proportion in total accounts
receivable 49.68% 19.76%
(6) The net amount of other accounts receivable in the period-end decreased 44.43%
compared with that of last year, which was mainly because that the subsidiary – HIC
increased indemnity receivable from insurance company.
5. Inventory
(1) Classification:
Item Amount in period-end Amount in period-begin
Raw materials 33,499,905.46 47,071,141.36
Low-value consumption goods 1,289,408.08 1,347,902.07
Inventories 55,261,106.87 48,237,481.6339
Total 90,050,420.41 96,656,525.06
(2) Particulars about impairment of inventories
Decrease in the period
Item
Amount in
period-begin
Increase in
the period Switch-back
Switch-back
proportion
(%)
Write-off
Amount in
period-end
Raw materials 650,620.41 650,620.41
Low-value
consumption goods 0
Inventories 0
Total 650,620.41 0.00 0.00 0.00 0.00 650,620.41
6. Long-term equity investment
Balance in year-begin Balance in period-end
Item
Book balance
Provision for
impairment
Increase in
the period
Decrease in
the period Book balance
Provision for
impairment
Investment of Joint
venture
Investment of
associated enterprise
Investment of other
equity
33,000,000.00 33,000,000.00 33,000,000.00 33,000,000.00
Total 33,000,000.00 33,000,000.00 33,000,000.00 33,000,000.00
(1) Details of long-term equity investment:
Invested units
Holding
Proportion (%)
The original
amount
Balance in
year-begin
Increase in
the period
Decrease in
the period
Balance in
period-end
Dividends
I. Calculated by cost
Southern Securities Co.,
Ltd.
0.87% 33,000,000.00 33,000,000.00 33,000,000.00
II. Calculated by Equity
-
Total 33,000,000.00 33,000,000.00 33,000,000.00
(2) Impairment of long-term equity investment:
Invested units Balance in Increase in the period Decrease in the period Balance in40
year-begin Provision in
the period
Other
increase
Write-off in
the period
Other
decrease
period-end
Southern Securities Co.,
Ltd.
33,000,000.00 33,000,000.00
Total 33,000,000.00 33,000,000.00
Note: In view of Southern China Securities Co., Ltd had been abolished the securities
business license and ordered to be closed by China Securities Regulatory Commission on Apr.
29, 2005. On Aug. 16, 2006, Shenzhen Intermediate People Court declared bankruptcy of
Southern China Securities Co., Ltd. So the Company had withdrawn full impairment for the
long-term investment of Southern China Securities Co., Ltd.
7. Investment real estate (cost mode)
Item Amount in period-begin
Increase in the
period
Decrease in the
period
Amount in
period-end
I. Total at the original price 47,118,859.45 47,118,859.45
Buildings 47,118,859.45 47,118,859.45
Land use right
II.Total accumulated depreciation
and amortization 4,047,910.67 706,167.91 4,754,078.58
Buildings 4,047,910.67 706,167.91 4,754,078.58
Land use right
III. Total accumulated mount of
provision for impairment of
investment real estate 886,512.06 886,512.06
Buildings 886,512.06 886,512.06
Land use right
IV. Total book value of investment
real estate 42,184,436.72 41,478,268.81
Buildings 42,184,436.72 41,478,268.81
Land use right
Note: particulars about investment real estate in the period were as follows:
(1) The factory located at No.3, South Heze Road, Qingdao City, Shandong Province, was
leased to Qingdao Maritime Vocational School, with the time limit from Oct., 2008 to Sep.,
2010.
(2) Would lease parts of office building located at No. 43, Heping Road, Jinan City,
Shandong Province.
8. Fixed assets
Item Amount in
period-begin
Increase in the
period
Decrease in
the period Amount in period-end
I. Total at the original price 378,232,668.51 1,320,193.41 5,429.24 379,547,432.68
Buildings 63,638,771.10 63,638,771.10
Vessels 280,649,862.16 715,002.95 281,364,865.11
Machinery and 22,874,976.08 521,567.91 23,396,543.9941
fishing equipment
Transportation equipments 3,365,503.46 3,365,503.46
Furniture and office equipment 7,703,555.71 83,622.55 5,429.24 7,781,749.02
II. Total accumulated depreciation 122,867,621.86 10,036,796.25 5,429.24 132,898,988.87
Buildings
6,458,529.14 786,636.18
7,245,165.32
Vessels 104,781,277.19 7,938,011.31 112,719,288.50
Machinery and
fishing equipment 5,396,793.44 837,890.54 6,234,683.98
Transportation equipments 1,729,530.25 95,377.45 1,824,907.70
Furniture and office equipment 4,501,491.84 378,880.77 5,429.24 4,874,943.37
III. Total accumulated amount of provision for
impairment of fixed assets 7,571,580.00 - 7,571,580.00
Buildings
Vessels 7,571,580.00 7,571,580.00
Machinery and
fishing equipment
Transportation equipments
Furniture and office equipment
IV. Total book value of fixed assets 247,793,466.65 - - 239,076,863.81
Buildings 57,180,241.96 56,393,605.78
Vessels 168,297,004.97 157,424,185.53
Machinery and
fishing equipment 17,478,182.64 21,113,028.82
Transportation equipments 1,635,973.21 1,221,464.31
Furniture and office equipment 3,202,063.87 2,924,579.37
Note: (1) The fix assets in the period increased RMB 1,320,193.41, including: import custom
of RMB 609,124 of the subsidiary of Haiyan – Taihong 1 and Taihong 2, the subsidiary –
Yantai Food increased single-freezing machine of RMB 395,760.67, and FR ship of HIC
increased S-VCR equipment of RMB 105,878.95.
(2) The accumulated depreciation in the period increased as provision depreciation.
(3) Mortgage of fixed assets
Till Jun.30, 2009, the Company mortgaged production ship Taifu 101 with the original book
value of RMB 46,976,452.50, Taihong 1 with the original book value of RMB 13,579,445.64,
Taihong 2 with the original book value of RMB 11,335,381.12, Taining with the original
book value of RMB 32,587,971.41 and Taixing with the original book value of RMB
24,671,280.85 to get comprehensive credit authorization of RMB 40 million, and has
received short-term loan of RMB 16 million.
The Company mortgaged production building with the original value of RMB 7,186,500.00
and land use right of RMB 9,929,529.00 to get comprehensive credit authorization of 23
million, the short-term loan at period-begin of RMB 19.5 million has been returned, and the
mortgage of machine equipment with the original book value of RMB 19,867,441.92 has
been released; the short-term loan of RMB 20 million with the ship Taifu 102 which has the
original book value of RMB 62,543,637.60 as mortgage has been returned, and the mortgage42
release was in process.
9. Intangible assets
Item
Amount in
period-begin
Increase in the
period
Decrease in the
period
Amount in pe
riod-end
I. Total at the original prices 10,127,557.00 1,600.00 10,129,157.00
Land use right of Yantai Food 9,929,529.00 9,929,529.00
Other 198,028.00 1,600.00 199,628.00
II. Total accumulated amortization
amount
1,872,061.74 136,258.65 2,008,320.39
Land use right of Yantai Food 1,796,003.81 119,763.52 1,915,767.33
Other 76,057.93 16,495.13 92,553.06
III. Total accumulated amount of
provision for impairment of
intangible assets
Land use right of Yantai Food
Other
IV. Total book value of intangible
assets
8,255,495.26 8,120,836.61
Land use right of Yantai Food 8,133,525.19 8,013,761.67
Other 121,970.07 107,074.94
Note: Till Jun. 30, 2009, the land use right was used for loan mortgage, and the loan was
returned; the land use right and production house were together used for mortgage, and the
Company gained comprehensive credit authorization of RMB 23 million.
10. Provision for impairment of assets
Decrement
Items
Amount in
period-begin
Increment
Transfer back Write off
Amount in
period-end
Bad debt provision 16,221,178.79 263,850.43 704,628.79 15,780,400.43
Provision for depreciation
of inventory 650,620.41
650,620.41
Impairment of
available-for-sale financial
assets 0
Impairment of
held-to-maturity investment 0
Impairment of long-term
equity investment 33,000,000.00 33,000,000.00
Impairment of investment
property 886,512.06 886,512.06
Provision for impairment of
fixed assets 7,571,580.00 7,571,580.00
Impairment of construction43
in progress
Impairment of intangible
assets
Impairment of goodwill
Others
Total 58,329,891.26 263,850.43 704,628.79 57,889,112.90
11. Short-term loans
Items
Amount in
period-end Amount in period-begin
Character loan
Mortgage loan 16,000,000.00 39,500,000.00
Guaranteed loan
Impawn loan 12,000,000.00 30,503,800.00
Total 28,000,000.00 70,003,800.00
Note: 1.Mortgage loans are due to that the Company uses the ships “Tai Fu 101”(book
value is RMB 46.976.452.50 Yuan), “Tai Hong 1”(book value is RMB 13.579.445.64Yuan),
“Tai Hong 2”(book value is RMB 11.335.381.12Yuan), “Tai Ning”(book value is RMB
32.587.971.41Yuan), “Tai Xing”(book value is RMB 24.671.280.85Yuan), as mortgage and
obtains short-term loans of RMB 16 million.
Mortgage loans are due to that the Company uses the building (book value is RMB
7,186,500.00 Yuan), machinery and equipment (book value is RMB 19,867,441.92 Yuan),
and land use right (book value is RMB 9,929,529.00 Yuan) of Shandong Zhonglu Oceanic
(Yantai) Food Co., Ltd. as mortgage and obtains loan RMB 19.5 million Yuan, and returned
back in the report period; machinery and equipment (book value is RMB 19,867,441.92
Yuan)has already released mortgage, the mortgage of the building and land use right has
obtained 23 million from bank and uses the ship “Tai Fu 102” (book value is RMB
62.543.637.60 Yuan) as mortgage and obtains loan RMB 20 million Yuan. At this period,
the 20 million had been paid back and now releasing mortgage was undertaking.
2. There was no overdue short-term loan at the end of period in the company.
3. Short-term loan decreased 60% at this period-end compared to that of the same period of
last year, which was mainly due to the loan returned by Yantai Grocey Co., Ltd. and HIC
Company.
12. Accounts payable
Amount in period-end Amount in period-begin
Items
Balance Proportion
（%）
Balance
Proportion
（%）
Within 1 year 40,599,381.65 90.60 56,786,249.10 91.32
1-2 years 1,125,416.60 1.81
2-3 years 6,480.88 0.01
Over 3 years 4,214,491.61 9.40 4,264,511.84 6.8644
Total 44,813,873.26 100 62,182,658.42 100
Note: 1.The account balance did not contain debt that should be paid to any major
shareholders who own more than 5% of the Company’s share capital.
2. The ending balance of accounts payable decreased 27.93% in this period compared to that
of the beginning of the period, which was mainly due to Yantai Grocey Co., Ltd. paid for the
account of raw material payable.
13. Accounts received in advance
Amount in period-end Amount in period-begin
Items Balance （%） Balance （%）
Within 1 year 30,000.00 7.90 2,390,270.94 87.23
Over 2 years 349,863.72 92.10 349,863.72 12.77
Total 379,863.72 100.00 2,740,134.66 100
Note: 1.The ending balance did not contain debt that should be paid to any major
shareholders who own more than 5% of the Company’s share capital.
2. Accounts received in advance decreased 86.14% at this period-end compared to that of the
period-end of last year, which was mainly due to that Yantai Grocey Co., Ltd. considereded
accounts of customers received in advance as operating income.
14. Wage payable
Items
Amount in
period-begin
Increment Payment
Amount in
period-end
Salary, bonus, allowance 5,867,478.44 14,521,013.52 13,196,575.15 7,191,916.81
Employee Welfare expenses 0.00 593,826.59 593,826.59 0.00
Social insurance 217,457.18 2,117,634.84 2,200,899.22 134,192.80
Housing accumulation fund 95,808.52 565,573.17 470,534.57 190,847.12
Labor union outlay and
employee education outlay
812,270.00 135,033.77 111,253.34 836,050.43
Non-monetary welfares 3,974.00 0.00 3,974.00 0.00
Compensation for dismissal
of relationship of labor force
48,280.00 63,739.54 77,775.54 34,244.00
Other 0.00 8,247.00 8,247.00 0.00
Including:shares balanced by
cash
0.00 0.00 0.00 0.00
Total 7,045,268.14 18,005,068.43 16,663,085.41 8,387,251.16
Note: The balance of wages paid for employee payable is due to unpaid wages and bonuses
for employee but withdrawn.
15. Tax payable45
Items Amount in period-end Amount in period-begin
Income tax -44,775.41 -88,480.55
Value-added tax -22,587.04 -1,794,571.25
Business tax 72,033.52 121,786.36
Urban maintenance and
construction tax 3,799.33 4,695.09
Educational surtax 1,703.28 2,682.91
Water conservancy fund 779.60
Other 555,456.85 575,446.62
Total 566,410.13 -1,178,440.82
Note: Tax payable increased 148.06% at this period-end compared to that of the period-end
of last year, which was mainly due to that Value-added tax and output tax increased for goods
sale in Yantai Grocey Co., Ltd. in this period.
16. Others payable
Amount in period-end Amount in period-begin
Items Balance （%） Balance （%）
Within 1 year 8,932,047.09 59.05 10,022,990.44 70.76
1-2 years 390,810.38 2.58 1,962,744.75 13.86
2-3 years 2,393,599.90 15.82 1,704,601.20 12.04
Over 3 years 3,410,094.26 22.55 473,563.35 3.34
Total 15,126,551.63 100.00 14,163,899.74 100
Note: The ending balance did not contain debt that should be paid to any major shareholders
who own more than 5% of the Company’s share capital.
17. Share capital
At the balance sheet date, the Company’s paid-up share capital amounted to RMB
266,071,320.00 Yuan with a par value of RMB 1.00 Yuan each. The category and
structure of share capital are as follows:
Balance in year-begin Increase/Decrease of this time (+, -) Balance in period-end
Items
Amount Proportion
New
shares
issued
Bonus
shares
Capitalization
of public
reserve
Others Subtotal Amount Proportion
I Restricted shares 128,071,320.00 48.13 128,071,320.00 48.13
State-owned
shares
State-owned
legal person’s
shares
127,811,320.00 48.03
127,811,320.00 48.03
Other domestic
shares46
Balance in year-begin Increase/Decrease of this time (+, -) Balance in period-end
Items
Amount Proportion
New
shares
issued
Bonus
shares
Capitalization
of public
reserve
Others Subtotal Amount Proportion
Including:
Domestic
non-state-owned
legal person’s
shares
260,000.00 0.10
260,000.00 0.10
Domestic natural
person’s shares
Foreign shares
Including:
Foreign legal
person’s shares
Foreign natural
person’s shares
II
Unrestricted
shares
138,000,000.00 51.87
138,000,000.00 51.87
RMB Ordinary
shares
Domestically
listed foreign
shares
138,000,000.00 51.87
138,000,000.00 51.87
Overseas listed
foreign shares
Others
III Total shares 266,071,320.00 100 266,071,320.00 100
18. Capital reserves
Items
Balance of the
beginning of the
year
Increment Decrement
Balance of the
end of the
period
Share premium 186,283,711.00 186,283,711.00
－Founder shares 68,961,380.00 68,961,380.00
－B shares 117,322,331.00 117,322,331.00
Others 94,961,504.96 94,961,504.96
Total 281,245,215.96 281,245,215.96
19. Surplus reserves47
Items
Balance of the
beginning of the
year
Increment Decrement
Balance of the
end of the
period
Statutory surplus reserve 21,908,064.19 21,908,064.19
Arbitrary surplus reserve
Total 21,908,064.19 21,908,064.19
20. Undistributed profits
Items Amount
Balance at the end of last year -230,420,103.14
Add: adjustment of undistributed profit in year-begin
Including: Retroactive adjustment occurred in enterprise merger
under the common control
Changes to accounting policy
Balance at the end of last year
Others
Balance in this year-begin -230,420,103.14
Increase in this year 9,878,539.22
Including: net profit attributable to shareholders of the parent
company in this year
9,878,539.22
Other increase
Decreased in this year
Including: Surplus public reserve withdrawal in this year
Cash dividend distributed this year
Share dividend distributed this year
Other decrease
Balance in this year-end -220,541,563.92
Including: cash dividend approved by the Board
21. Operating income and cost
(1) Operating income
Items
Amount in this period
Amount in the same period of
last year
Main operating income 111,925,608.47 110,503,270.67
Other operating income 944,246.15 814,024.7848
Total 112,869,854.62 111,317,295.45
(2) Operating cost
Items
Amount in this period
Amount in the same period of last
year
Main operating costs 95,595,525.01 97,263,042.56
Other operating costs 715,170.00 714,049.88
Total 96,310,695.01 97,977,092.44
(3) Business segments
Amount in this period Amount in the same period of last year
Items
Income Cost Profit Income Cost Profit
Oceanic fishing 44,510,268.34 35,396,774.26 9,113,494.08 49,107,856.40 44,077,035.44 5,030,820.96
Trading of seafood 1,632,061.07 1,559,085.98 72,975.09 897,123.90 921,772.43 -24,648.53
Letting of
refrigerated vessel
and vessel
management
23,578,949.78 19,152,591.18 4,426,358.60 24,984,601.30 19,997,141.87 4,987,459.43
Seafood processing,
cold storage and
others
42,204,329.28 39,487,073.59 2,717,255.69 35,513,689.07 32,267,092.82 3,246,596.25
Total 111,925,608.47 95,595,525.01 16,330,083.46 110,503,270.67 97,263,042.56 13,240,228.11
(4) Geographical segments
Amount in this period Amount in the same period of last year
Items Income Cost Profit Income Cost Profit
PRC 21,284,272.00 18,243,758.48 3,040,513.52 17,143,484.89 15,317,733.11 1,825,751.78
Taiwan 48,682,867.34 39,164,931.73 9,517,935.61 75,672,694.35 64,015,971.40 11,656,722.95
U.S.A 4,286,275.64 3,695,413.44 590,862.20
Japan 29,015,269.17 26,524,530.94 2,490,738.23 8,164,728.21 8,470,056.39 -305,328.18
spain 2,428,750.22 2,490,787.42 -62，037.21 0.00
Singapore 1,448,760.49 795,083.86 653,676.63 319,353.75 100,106.70 219,247.05
Germany 2,594,409.94 2,432,630.32 161，779.62 0.00
Ghana 2,791,550.14 2,493,529.95 298,020.19 2,335,866.63 3,205,987.52 -870,120.8949
Other 3,679,729.17 3,450,272.30 229,456.87 2,580,867.20 2,457,774.00 123,093.20
Total 111,925,608.47 95,595,525.01 16,330,083.46 110,503,270.67 97,263,042.56 13,240,228.11
(5) Sales of five largest customers
Items
Amount in this period
Amount in the same period
of last year
Sales revenue of five largest customers 83,883,009.17 72,114,110.39
Percentage of total revenue (%) 74.32% 65.26%
22. Operating taxes and extras
Items Calculation standards
Amount in
this period
Amount in
the same
period of last
year
Business tax
3%-5% of installation income and rental
income
427,070.95 483,277.89
Urban maintenance
and construction tax
7% of actual value-added tax and business tax 21,838.63 23,802.63
Educational surtax
1%-3% of actual value-added tax and
business tax
9,698.16 10,268.32
House property tax House area 81,300.00 74,910.00
Other 23,505.01 13,898.76
Total 563,412.75 606,157.60
23. Financial expenses
Items
Amount in this period
Amount in the same period of
last year
Interest expenses 1,561,906.84 2,105,810.21
Less: Interest income 1,209,425.46 82,305.41
Exchange losses 51,833.97 512,041.62
Less: exchange gains 98,441.32 869,170.29
Others 101,004.51 422,789.51
Total 406,878.53 2,089,165.64
Note: Financial expenses increased 80.52% at this period compared to that of the same
period of last year, which was mainly due to that Interest exchange decreased by paying50
back loan to bank, interest income of guaranteed bond increased, little change of exchange
rate and exchange loss decreased
24. Loss of devaluation of assets
Items Amount in this period
Amount in the same period of
last year
Bad debt provision -440,778.26 -315,166.73
Inventories impairment loss -723,380.76
Provision for impairment of
fixed assets
Total -440,778.26 -1,038,547.49
Note: Provision for impairment of assets increased 57.56% at this period compared to that of
the same period of last year, which was mainly due to inventories sale and inventories
impairment at the beginning of the same period of last year
25. Investment income
Items
Amount in this period
Amount in the same period of
last year
Stock investment income 330,596.54
Total 330,596.54
Note: Investment income decreased 100% at this period compared to that of the same
period of last year, which was mainly due to that investment income at the same period of
last year was transferred and proceeded by subscribing new shares and no such business
carried out at this period.
26. Non-operating income and expenses
Items Amount in this period
Amount in the same period of
last year
Gains on disposal of
non-current assets 203,475.01
Income from exchange of
non-monetary asset
Government subsidy 4,672,395.76 18,070,000.00
Income from debt restructuring
Switching back of projected
liabilities
Other 35,328.53 50,745.00
Total non-operating income 4,707,724.29 18,324,220.01
Losses from the disposal of
non-current assset51
Income from exchange of
non-monetary asset
Debt losses
Others 32,194.03 385,950.19
Total non-operating expense 32,194.03 385,950.19
Note: 1. Non-operating expenses decreased 74.31% at this period compared to that of the
same period of last year, which was mainly due to that fuel subsidies from government
decreased at this period compared to that of the same period of last year.
2. Non-operating expenses decreased 91.66% at this period compared to that of the same
period of last year, which was mainly due to donation and boating benefits for earthquake
relief in the same period of last year
3. Details of government subsidy are as follows:
Items
Amount in this
period
Amount in the
same period of
last year
Fuel subsidies 2,872,395.76 17,390,000.00
Finance discount 1,800,000.00 680,000.00
Finance rebate
Special funds for foreign economic cooperation
Total 4,672,395.76 18,070,000.00
27. Earnings per share
Items Amount in the period Amount in the same
period of last year
Net profit attributable to common shareholders 9,878,539.22 15,996,897.71
Outstanding ordinary shares at the beginning of
the year
266,071,320.00 266,071,320.00
Newly issued ordinary shares
Issue time
Current repurchase of ordinary shares
Repurchased date
Weighted average of outstanding ordinary
shares
266,071,320.00 266,071,320.00
Basic earnings per share 0.04 0.06
Net profit attributable to common shareholders52
after adjusted
Weighted average of outstanding ordinary
shares after diluted
266,071,320.00 266,071,320.00
Diluted earnings per share 0.04 0.06
28. Information of cash flow statement
(1) Larger amounts of cash flow statement
Items Amount in the period Amount in the same period
of last year
Cash paid relating to other operating
activities:
7,993,574.01 15,009,791.11
Pay for current accounts 4,017,190.27 8,964,513.85
Transportation costs 154,559.48 162,518.78
Traveling expenses 1,471,836.83 1,343,600.44
Serving expenses 452,030.14 632,439.38
Water , electricity and rental fee 314,266.49 243,572.93
Official business expenses 547,446.34 844,651.63
Port surcharge 443,852.61 345,506.55
Tariff 366,221.80 303,529.56
Customs inspection fee 74,817.05 104,032.34
Road maintenance and operating
fee
76,282.16
Interest expense 67,137.41
Training fee 4,646.52
Others 3,286.92
Cash received relating to other
operating activities:
18,170,338.95 18,301,443.02
Interest income 1,110,062.17 82,305.41
Compensation from insurance
company
80,293.42
Current fund 11,851,379.93
Government subsidy relating with
the Company’s business
4,672,395.76 18,070,000.00
(2) Supplementary information of cash flow statement
Amount in the Amount in the53
Items period same period of last
year
1．Reconciliation of net profit to cash flows from
operating activities:
Net profit 9,878,539.22 15,996,897.71
Add: Provision for impairment of assets -440,778.26 -1,038,547.49
Depreciation of fixed assets, oil assets and
productive biological assets
10,742,964.16 10,181,125.07
Amortization of intangible assets 136,258.65 128,644.67
Amortization of long-term prepayments
Losses on disposal of fixed assets, intangible assets
and other long-term assets (income is listed with “- ”)
-203,475.01
Losses on scrapping of fixed assets(income is listed
with “- ”)
Losses on fair value change(income is listed with
“- ”)
Financial expenses(income is listed with “- ”) 1,334,832.08 2,089,165.64
Investment losses(income is listed with “- ”) -330,596.54
Decrease in deferred income tax assets (increase is
listed with “-”)
Increase in deferred income tax liabilities (decrease
is listed with “- ”)
Decrease in inventories(increase is listed with “-”) 6,606,104.65 -16,836,217.64
Decrease in operating receivables(increase is listed
with “-”)
1,002,399.39 -4,352,470.82
Increase in operating payables(decrease is listed
with “- ”)
-5,031,600.19 -2,277,802.59
Others
Net cash flows from operating activities 24,228,719.70 3,356,723.00
2．Significant investing and financing activities that do
not involve cash receipts and payments
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under finance lease
3．Net increase in cash and cash equivalents54
Cash at the end of the year 31,487,914.99 52,650,338.06
Less: Cash at the beginning of the period 64,452,404.48 48,341,638.29
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -32,964,489.49 4,308,699.77
(3) Cash and cash equivalents
Items Amount in the
period
Amount in the same
period of last year
1. Cash
Including: Cash on hand 316,698.66 461,841.59
Bank deposit paid at any time 28,554,177.65 34,420,214.44
Other monetary funds paid at any time 2,617,038.68 17,768,282.03
2. cash equivalents
Including: Bonds investment expired within three
months
3. Cash and cash equivalents at the end of year 31,487,914.99 52,650,338.06
Note: The margin deposits of the Company can’t be used for payment after 3 months of
balance sheet date, so it is deducted from cash when preparing cash flow statement; it is
RMB 12 million Yuan this year.
VI. Main items of parent company’s financial statements (Unit: RMB Yuan)
1. Accounts receivable
Amount at period-end Amount at period-begin
Proportion
（%）
Proportion
（%）
Categories
Balance
(%)
Bad debt
provision
Balance
(%)
Bad debt
provision
Single accounts
receivable with
significant amount
12,279,798.58 82.44 3,600,962.12 9,436,222.15 79.64 3,679,530.62
Accounts receivable
that individual
amounts are not
significant but
portfolio risk is great
according to the
portfolio
characteristics of
credit risk
2,412,888.82 16.20 2,412,888.82 2,412,888.82 20.36 2,412,888.82
Other unimportant
accounts receivable 201,924.61 1.36
Total 14,894,612.01 100 6,013,850.94 11,849,110.97 100 6,092,419.4455
Note: 1. “Single accounts receivable with significant amount” refers to the end balance of
accounts receivable over RMB 1 million Yuan; “accounts receivable that individual amounts
are not significant but portfolio risk is great according to the portfolio characteristics of credit
risk” refers to the age of accounts receivable over 3 years. Details of “single accounts
receivable with significant amount” are as follows:
Name Ages Amount
Proportion
（%）)
Reason
PANDA Over 3 years 3,600,962.12 100 According to
ages analysis
F.C.F. Fishery Co., Ltd. Within 6 months 8,678,836.46 5 According to
ages analysis
Total 12,279,798.58
2. The bad debt provision of “single accounts receivable with significant amount” doesn’t
adopt specific identification method.
3. The ending balance did not contain any debt owned by major shareholders who own more
than 5% of the Company’s share capital.
4. Ages analysis
Amount at period-end Amount at period-begin
Ages
Balance
Proportion
（%）
(%)
Bad
debt
provis
ion
Propo
rtion
（%）
Bad debt
provision Balance
Proporti
on（%）
(%)
Bad
debt
provisi
on
Propor
tion
（%）
Bad debt
provision
Within 6 months 8,880,761.07 59.62 5,835,260.03 49.25 5 78,568.50
6 months to 1 year 10
1 to 2 years 30
2 to 3 years 50
Over 3 years 6,013,850.94 40.38 100 6,013,850.94 6,013,850.94 50.75 100 6,013,850.94
Total 14,894,612.01 100 6,013,850.94 11,849,110.97 100 6,092,419.44
2. Other receivables
Amount at period-end Amount at period-begin
Categories
Balance
Proportio
n（%）
(%)
Bad debt
provision Balance
Proporti
on（%）
(%)
Bad debt
provision
Single accounts
receivable with
significant amount
56,471,294.53 90.09 4,260,000.00 33,516,321.35 84.07 4,260,000.00
Accounts
receivable that
individual amounts
are not significant
but portfolio risk is
great according to
3,406,064.70 5.43 3,406,064.70 3,406,064.70 8.54 3,406,064.7056
the portfolio
characteristics of
credit risk
Other unimportant
accounts
receivable
2,808,644.24 4.48 244,693.15 2,944,096.12 7.38 244,693.15
Total 62,686,003.47 100.00 7,910,757.85 39,866,482.17 100.00 7,910,757.85
Note: 1. “Single accounts receivable with significant amount” refers to the end balance of
accounts receivable over RMB 1 million Yuan; “accounts receivable that individual amounts
are not significant but portfolio risk is great according to the portfolio characteristics of credit
risk” refers to the age of accounts receivable over 3 years. Details of “single accounts
receivable with significant amount” are as follows:
Name Ages Amount
Proportion
（%）)
Reason
Zhong Chan Jing Investment Co., Ltd. Over 3 years 4,260,000.00 100.00
According to
ages analysis
Shandong Zhonglu Oceanic Fisheries
Transportation Co., Ltd.(“Zhonglu
Transportation”)
6 months to 1 year 6,098,060.00 Related party
Shandong Zhonglu (Yantai) Food Co.,
Ltd. (“Yantai Food”) 6 months to 1 year 25,000,120.00 Related party
YAW ADDO FISHERIES
COMPANY LIMITED
1 to 2 years 3,434,626.84 Related party
Habitat International Corporation 1 to 2 years 17,678,487.69 Related party
Total 56,471,294.53
2. The bad debt provision of “single accounts receivable with significant amount” doesn’t
adopt specific identification method.
3. The ending balance did not contain any debt owned by major shareholders who own more
than 5% of the Company’s share capital.
4. Ages analysis
Amount at period-end Amount at period-begin
Ages
Balance
Propo
rtion
（%）
Bad
debt
provisi
on
Propor
tion
（%）
Bad debt
provision
Balance
Propor
tion
（%）
Bad
debt
provisi
on
Propor
tion
（%）
Bad debt
provision
Within 6
months
22,935,512.17 36.59 5 60,085.33 19,857,275.07 49.81 5 133,315.49
6 months to 1
year
14,042,791.91 22.40 10 75,062.72 11,979,995.40 30.05 10 1,833.56
1 to 2 years 18,038,634.69 28.78 30 108,045.10 360,147.00 0.90 30 108,044.10
2 to 3 years 3,000.00 0.00 50 1,500.00 3,000.00 0.01 50 1,500.00
Over 3 years 7,666,064.70 12.23 100 7,666,064.70 7,666,064.70 19.23 100 7,666,064.7057
Total 62,686,003.47 100 7,910,757.85 39,866,482.17 100 7,910,757.85
3. Long-term receivables
Items Balance at the period-end Jan 1, 2009
Financing lease
Selling fixed assets and
collecting money by stages
7,981,593.67 7,501,383.23
Including: account receivable for
selling fixed assets
20,503,800.00 20,503,800.00
Unrecognized financing income -12,522,206.33 -13,002,416.77
Rendering of service and
collecting money by stages
Total 7,981,593.67 7,501,383.23
Note：In April 2008, the Company sold the ship “Zhong Lu Yu 1003/1004” to YAW ADDO
FISHERIES COMPANY LIMITED in Ghana, then the Company adopted the way of leasing
back YAW ADDO FISHERIES COMPANY LIMITED and obtained the legal fishing
permission in Ghana sea area. YAW ADDO FISHERIES COMPANY LIMITED obtained
fishing permission on March 2008.
The original value of the ship is RMB 10,897,999.06 Yuan, accumulated depreciation is RMB
355, 5331.52 Yuan, the net value is RMB 7,342,667.54 Yuan.
The selling price of the ship is USD 3 million with collecting money among 20 years.
Exchange rate is 1:7.0218 at the time of signing the contract; the conversion price is RMB
21,065,400.00 Yuan (contract interest rate: 8%), unrecognized financing income is RMB
13,722,732.46 Yuan.
As of June 30, 2009, the balance of long-term account receivables is RMB 20,503,800.00
Yuan; amortization of unrecognized financing income is RMB 480,210.44 Yuan in the
report period, the balance of uncognized financing income is RMB 12,522,206.33 Yuan
ended the report period.
4. Long-term equity investments
Items BAalmanocuen t in yearP-broevgiisni on Increment Decrement BBaallaannccee a t the pePriroodv-iesniodn
Investment in
joint venture
company
90,793,844.22 90,793,844.22
Investment in
affiliated
companies
Other equity
investment 33,000,000.00 33,000,000.00 33,000,000.00 33,000,000.00
Total 123,793,844.22 33,000,000.00 123,793,844.22 33,000,000.00
(1) Details of long-term equity investments are as follows:58
Name
Proportio
n held by
the
Company
（%）
Initial amount
Amount in
year-begin
Increment
Decremen
t
Balance at the
period-end
1．Measured with cost method:
Southern Securities Co., Ltd. 0.87 33,000,000.00 33,000,000.00 33,000,000.00
Habitat International 100 12,476,145.60 12,476,145.60 12,476,145.60
Shandong Zhonglu Oceanic Fisheries
Transportation Co., Ltd
100 21,380,320.00 22,869,513.38 22,869,513.38
Shandong Zhonglu Oceanic (Yantai)
Food Co., Ltd. (“Yantai Food”)
74.23 32,280,000.00 55,448,185.24 55,448,185.24
2．Measured with equity method
Total 99,136,465.60 123,793,844.22 123,793,844.22
(2) Impairment of long-term equity investment
Increment Decrement
Name
Amount in
year-begin
Withdrawal
in the report
period
Other
increase
Transfer-out
in the report
period
Other
decrease
Balance at the
period-end
Southern China Securities
Co., Ltd
33,000,000.00 33,000,000.00
Total 33,000,000.00 33,000,000.00
5. Operating income
Items Amount in the period
Amount in the same
period of last year
Main operating income 48,249,772.73 47,669,113.67
Other operating income 794,043.01 728,504.33
Total 49,043,815.74 48,397,618.00
(1) Main operating income and cost(classified in according to industry and area)59
Amount in Items the period Amount in the same period of last year
Income Cost Gross profit Income Cost Gross profit
Oceanic fishiing 46,617,711.66 37,734,492.01 8,883,219.65 46,771,989.77 40,871,047.92 5,900,941.85
Aquatic trade 1,632,061.07 1,559,085.98 72,975.09 897,123.90 921,772.43 -24,648.53
Total 48,249,772.73 39,293,577.99 8,956,194.74 47,669,113.67 41,792,820.35 5,876,293.32
(2) Sales of five largest customers
Items
Amount in the period Amount in the same period of
last year
Sales revenue of five largest customers 46,635,204.63 38,844,730.29
Percentage of total revenue (%) 95% 81%
6. Operating cost
Items Amount in the period
Amount in the same period
of last year
Main operating costs 39,293,577.99 41,792,820.35
Other operating costs 715,170.00 714,049.88
Total operating cost 40,008,747.99 42,506,870.23
7．Investment income
Items Amount in the period
Amount in the same period
of last year
Stock investment income 0.00 330,596.54
Total 0.00 330,596.54
VII. Related party relationship and transactions
1. Related party cognizance
According to "Enterprises Accounting Standards No.36 – related party disclosures", one
party controls, jointly control the other party or brings significant influence to the other
party, and two or more than two parties are controlled by one party, jointly controlled or
significantly influenced, these are called related party.
According to "listed companies’ information disclosure management method" (Document
of No. 40 issued by China Securities Regulatory Commission), associated legal and natural
persons under specific circumstances are identified as related parties.
2. Related party relationship60
(1) Parent company and ultimate controller
Name
Relationship
with the
Company
Type
Registered
address
Legal
representative
Organization
code
Business
character
Registered
capital
(RMB0’000)
Holding
the
Company’s
shares
Proportion
of the
right to
vote
Shandong
State-owned
assets
investment
Co. Ltd
Majority
shareholder
and ultimate
controller
Stateowned
Shandong
Ji’nan
Liu
Changsuo
16307316-7
managing
capital,
trusteeship
operating,
investment
consultation
160,000 33.07% 33.07%
(2) Related parties with control relationship
Name Type
Registered
address
Legal
representative
Organization
code
Business
character
Registered
capital
(RMB0’000)
Shares holding
by the
Company
Voting shares
holding by the
Company
Shandong Zhonglu
Oceanic Fisheries
Transportation Co.,
Ltd.(“Zhonglu
Transportation”)
Limited
liability
company
Shandong
Qingdao
Li Dexin 16307123-3
Refrigerated
vessels
2,250.56 100% 100%
Habitat
International
Corporation
Limited
liability
company
Panama Wang Aimin
Refrigerated
vessels
1,247.6146 100% 100%
Shandong Zhonglu
Oceanic (Yantai)
Food Co., Ltd.
(“Yantai Food”)
Limited
liability
company
Shandong
Yantai
Wang Zhaoan 72927738-9
Processing
of seafood
7,559.33 100% 100%
YAW ADDO
FISHERIES
COMPANY
LIMITED
Limited
liability
company
Ghana
Oceanic
fishing
0.438709 100%
(3) Related parties without control relationship61
Name
Relationship
with the
Company
Type
Registered
address
Legal
representative
Organization
code
Business
character
Registered
capital
(RMB0’000)
Holding
the
Company’s
shares
Proportion
of the
right to
vote
Shandong
Luxin
Investment
Holding
Group
Co., Ltd.
Shareholder
Stateowned
Shandong
Ji’nan
Zhao Kui 73577367-X
managing
capital,
trusteeship
operating,
investment
consultation
300,000 14.18% 14.18%
3. Current related parties and transaction
There were no current related parties and transaction which should be disclosed but was not
disclosed.
VIII. Contingencies
As of June 30, 2009, the Company had following contingencies:
Guaranteed party
Balance
RMB 0’000
Terms of borrowing Guaranteed by
Qingdao Double Wale Pharmaceutical
Co., Ltd.
5,000 Feb 2002 to Jul 2006 Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Note: The Guaranteed party is in consultation with bank for reimbursement, it is expected
that the guarantee matter has no impact on the normal operation of the Company.
IX. The events after the balance sheet date
The Company did not have events after the balance sheet date which needs to be disclosed.
X. Other important events
The Company did not have other important event which needs to be disclosed.
Shandong Zhonglu Oceanic Fisheries Co., Ltd
Supplementary Information to the Financial Statements
Expressed in Renminbi Yuan
I. Calculation list of return on net assets and earning per shares
Return on net assets and earnings per share calculated according to “Rule 9 on Information
Disclosure by Companies Publicly Issuing Securities” issued by the China Securities
Regulatory Commission.
Return on net assets (%) Earnings per share(RMB Yuan)
Profit in the report period Fully
diluted
Weighted
average
Fully
diluted
Weighted
average
Net profit attributable to common 2.83% 2.87% 0.04 0.0462
shareholders
Net profit excluding extraordinary items
attributable to common shareholders 2.83% 2.87% 0.04 0.04
II. Non-recurring profit and loss list in 2009
1. In accordance with "public Offering of Securities Companies to Disclose Information
Explanatory Notice No. 1 - Non-Recurring Gains And Losses”promulgated by CSRC, the
occurring amount of the non-recurring gains and profit in the report period were as
followings:
Items Balance
1. Profit and loss on non-current assets
2．Alltyps of governmental subsidy
3．Government subsidy recorded into the current gains and losses(closely
relevant to enterprise business, except for the ones enjoyed in accordance with
the general ration or quota of the state)
4．Capital occupation received from non- financial enterprises and recorded into
the current gains and losses
5．The investment cost of subsidiaries, affiliated enterprise and combined
enterprise obtained by the enterprise is less than the obtained investment, then
gains resulting from recognizable fair value of net asset of investee units should
be enjoyed
6．Profit and loss on exchange of non-monetary assets
7．Profit and loss on entrusted investment or manage asset
8．Assets devalue provisions withdrawn for force majeure, such as natural
disaster
9．Gains and losses from debt restructuring
10. Enterprise restructuring expense such as expense on allocation of employee
and integrated expense
11 Profit and loss exceeding fair value, resulting from unfair transactions
12. Net profit and loss of the current period from the beginning of the
subsidiary to combination date, resulting from enterprise combination under
the common control
13. Profit and loss on predicted liabilities unrelated to main business of the
Company
14. Held transaction financial asset, gains/losses of changes of fair values from
transaction financial liabilities, and investment gains from disposal of
transaction financial asset, transaction financial liabilities and financial asset
available for sales, exclude the effective hedging business relevant with normal
operations of the Company
15. Reversal of provisions for asset impairment of account receivable which is63
Items Balance
made singly impairment test
16. Gains/losses obtained from external entrusted loan
17. Losses/gains from the change of fair values of investing property of
subsequent measurement adopted by method of fair value
18. Influences on current losses/gains for one adjustment of current losses/gains
in accordance with the requirements of laws and regulations such taxation and
accountings.
19. Income of trustee fee from entrusted operation
20. Net amount of other non-operating income and expense except the above
items 3,134.54
21. Other losses/gains items conforming the definitions of non-recurring
gains/losses
22．Influeced amount of minority shareholders’ equity
23．Impact on income tax
Total 3,134.54
Consolidated Balance Sheet
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jun. 30, 2009 Unit: RMB
Items Notes No. Amount at period-end Amount at year-begin
Current assets:
Monetary funds V. (1) 43,487,914.99 74,452,404.48
Settlement provisions
Capital lent
Transaction finance asset64
Notes receivable
Accounts receivable V. (2) 15,330,998.69 15,298,645.02
Accounts in advance V. (3) 4,097,067.07 6,868,073.62
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable 27,977.50
Dividend receivable
Other receivables V. (4) 5,613,502.13 3,886,607.26
Purchase restituted finance asset
Inventories V. (5) 89,399,800.00 96,005,904.65
Non-current asset due within one year
Other current assets
Total current assets 157,929,282.88 196,539,612.53
Non-current assets:
Granted loans and advances
Finance asset available sales
Held-to-maturity securities
Long-term account receivable
Long-term equity investment V. (6)
Investment property V. (7) 41,478,268.81 42,184,436.72
Fixed assets: V. (8) 239,076,863.81 247,793,466.65
Construction in progress
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets V. (9) 8,120,836.61 8,255,495.26
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset
Other non-current asset
Total non-current asset 288,675,969.23 298,233,398.63
Total assets 446,605,252.11 494,773,011.1665
Current liabilities:
Short-term loans V. (11) 28,000,000.00 70,003,800.00
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Transaction financial liabilities
Notes payable
Accounts payable V. (12) 44,813,873.26 62,182,658.42
Accounts received in advance V. (13) 379,863.72 2,740,134.66
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable V. (14) 8,387,251.16 7,045,268.14
Taxes payable V. (15) 566,410.13 -1,178,440.82
Interest payable
Dividend payable 459,329.80 459,329.80
Other accounts payable V. (16) 15,126,551.63 14,163,899.74
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 97,733,279.70 155,416,649.94
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 97,733,279.70 155,416,649.94
Shareholders’ equity:
Share capital V. (17) 266,071,320.00 266,071,320.00
Capital public reserve V. (18) 281,245,215.96 281,245,215.96
Less: Inventory shares
Surplus public reserve V. (19) 21,908,064.19 21,908,064.19
Retained profit V. (20) -220,541,563.92 -230,420,103.14
Balance difference of foreign currency translation 184,549.09 547,477.12
Total owner’s equity attributable to parent company 348,867,585.32 339,351,974.13
Minority interests 4,387.09 4,387.09
Total shareholder’s equity 348,871,972.41 339,356,361.2266
Total liabilities and shareholder’s equity 446,605,252.11 494,773,011.16
Principal of the Company: Person in charge of accounting works:
Person in charge of accounting institutes:67
Balance Sheet of Parent Company
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jun.30, 2009 Unit: RMB
Items
Notes
No.
Amount at period-end Amount at year-begin
Current assets:
Monetary funds 31,838,816.80 49,281,486.67
Settlement provisions 0.00
Notes receivable 0.00
Accounts receivable VI. (1) 8,880,761.07 5,756,691.53
Accounts in advance 2,608,391.23 6,283,327.65
Interest receivable 0.00 27,977.50
Dividend receivable 0.00
Other receivables VI. (2) 54,775,245.62 31,955,724.32
Inventories 32,029,201.87 28,114,077.03
Non-current asset due within one year
Other current assets
Total current assets 130,132,416.59 121,419,284.70
Non-current assets:
Finance asset available sales
Held-to-maturity securities
Long-term account receivable VI. (3) 7,981,593.67 7,501,383.23
Long-term equity investment VI. (4) 90,793,844.22 90,793,844.22
Investment property 41,478,268.81 42,184,436.72
Fixed assets: 103,098,620.56 108,032,188.60
Construction in progress 0.00
Engineering material 0.00
Disposal of fixed asset 0.00
Productive biological asset 0.00
Oil and gas asset
Intangible assets 95,617.65 108,366.69
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset
Other non-current asset
Total non-current asset 243,447,944.91 248,620,219.46
Total assets 373,580,361.50 370,039,504.1668
Current liabilities:
Short-term loans 28,000,000.00 30,000,000.00
Transaction financial liabilities -
Notes payable -
Accounts payable 5,291,819.46 11,658,674.93
Accounts received in advance 379,863.72 439,863.72
Wage payable 5,771,832.09 4,010,534.86
Taxes payable 9,833.60 -178,239.02
Interest payable -
Dividend payable 459,329.80 459,329.80
Other accounts payable 28,914,124.71 27,644,094.97
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 68,826,803.38 74,034,259.26
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 68,826,803.38 74,034,259.26
Shareholders’ equity:
Or share capital 266,071,320.00 266,071,320.00
Capital public reserve 279,130,089.16 279,130,089.16
Less: Inventory shares
Surplus public reserve 19,184,672.34 19,184,672.34
Retained profit -259,632,523.38 -268,380,836.60
Minority interests
Total shareholders’ equity 304,753,558.12 296,005,244.90
Total liabilities and shareholders’ equity 373,580,361.50 370,039,504.16
Principal of the Company: Person in charge of accounting works:
Person in charge of accounting institutes:69
Consolidated Profit Statement
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jun. 30, 2009 Unit: RMB
Items Notes No. This period Same period of last year
I. Total operating income 112,869,854.62 111,317,295.45
Including: Operating income V. (21) 112,869,854.62 111,317,295.45
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 107,666,845.66 113,579,600.35
Including: Operating cost V. (21) 96,310,695.01 97,977,092.44
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract
reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras V. (22) 563,412.75 606,157.60
Sales expenses 1,432,873.90 3,626,829.79
Administration expenses 9,393,763.73 10,318,902.37
Financial expenses(singly listed gains from
exchange if there were subsidiaries of financial
industry)
V. (23) 406,878.53 2,089,165.64
Losses of devaluation of asset V. (24) -440,778.26 -1,038,547.49
Add: Changing income of fair value(Loss is
listed with “-”)
Investment income (Loss is listed with “-”) V. (25) 330,596.54
Including: Investment income on affiliated
company and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) 5,203,008.96 -1,931,708.36
Add: Non-operating income V. (26) 4,707,724.29 18,324,220.01
Less: Non-operating expense V. (26) 32,194.03 385,950.19
Including: Disposal loss of non-current asset
IV. Total Profit (Loss is listed with “-”) 9,878,539.22 16,006,561.46
Less: Income tax 9,663.75
V. Net profit (Net loss is listed with “-”) 9,878,539.22 15,996,897.7170
Net profit attributable to owner’s equity of
parent company
9,878,539.22 15,996,897.71
Minority shareholders’ gains and losses
VI. Earnings per share
i. Basic earnings per share V. (27) 0.04 0.06
ii. Diluted earnings per share V. (27) 0.04 0.06
Principal of the Company: Person in charge of accounting works:
Person in charge of accounting institutes:71
Profit Statement of Parent Company
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jun. 30, 2009 Unit: RMB
Items Notes No. This period Same period of last year
I. Operating income VI. (5) 49,043,815.74 48,397,618.00
Less: Operating cost VI. (6) 40,008,747.99 42,506,870.23
Operating tax and extras 134,990.11 111,262.40
Sales expenses 726,401.97 3,293,883.46
Administration expenses 6,120,784.07 6,425,512.05
Financial expenses -1,927,532.83 300,944.58
Losses of devaluation of asset -78,568.50 -1,038,547.49
Add: Changing income of fair value(Loss is
listed with “-”)
Investment income (Loss is listed with “-”) VI. (7) 330,596.54
Including: Investment income on affiliated
company and joint venture
II. Operating profit (Loss is listed with “-”) 4,058,992.93 -2,871,710.69
Add: Non-operating income 4,689,320.29 18,273,475.01
Less: Non-operating expense 345,950.19
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) 8,748,313.22 15,055,814.13
Less: Income tax
IV. Net profit (Net loss is listed with “-”) 8,748,313.22 15,055,814.13
Principal of the Company: Person in charge of accounting works:
Person in charge of accounting institutes:72
Consolidated Cash Flow Statement
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jan.-Jun., 2009 Unit: RMB
Items Notes No. This period
Same period of last
year
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
labor services
101,115,502.72 106,632,558.86
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial
institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Insured savings and net increase of investment
Net increase of disposal of transaction financial asset
Cash received from interest, commission charge and
commission
Net increase of capital borrowed
Net increase of returned business capital
Write-back of tax received 2,689,668.31 725,024.86
Other cash received concerning operating activities V. (28) 18,170,338.95 18,301,443.02
Subtotal of cash inflow arising from operating activities 121,975,509.98 125,659,026.74
Cash paid for purchasing commodities and receiving
labor service
72,943,945.68 84,974,805.26
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and
commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 15,682,054.54 20,456,508.85
Taxes paid 1,127,216.05 1,861,198.52
Other cash paid concerning operating activities V. (28) 7,993,574.01 15,009,791.11
Subtotal of cash outflow arising from operating activities 97,746,790.28 122,302,303.74
Net cash flows arising from operating activities 24,228,719.70 3,356,723.00
II. Cash flows arising from investing activities:
Cash received from recovering investment 551,770.00
Cash received from investment income 330,596.54
Net cash received from disposal of fixed, intangible and
other long-term assets
1,773,855.00
Net cash received from disposal of subsidiaries and
other units73
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities
- 2,656,221.54
Cash paid for purchasing fixed, intangible and other
long-term assets
1,853,227.11 9,438,676.22
Cash paid for investment 567,830.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 1,853,227.11 10,006,506.22
Net cash flows arising from investing activities -1,853,227.11 -7,350,284.68
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing minority
shareholders’ investment by subsidiaries
Cash received from loans 46,020,000.00 66,941,750.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 46,020,000.00 66,941,750.00
Cash paid for settling debts 88,025,150.00 24,971,750.00
Cash paid for dividend and profit distributing or interest
paying
1,334,832.08 2,067,738.55
Including: Dividend and profit of minority shareholder
paid by subsidiaries
Other cash paid concerning financing activities 12,000,000.00 31,600,000.00
Subtotal of cash outflow from financing activities 101,359,982.08 58,639,488.55
Net cash flows arising from financing activities -55,339,982.08 8,302,261.45
IV. Influence on cash due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents -32,964,489.49 4,308,699.77
Add: Balance of cash and cash equivalents at the period
-begin
64,452,404.48 48,341,638.29
VI. Balance of cash and cash equivalents at the period -end 31,487,914.99 52,650,338.06
Principal of the Company: Person in charge of accounting works:
Person in charge of accounting institutes:74
Cash Flow Statement of Parent Company
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jan.-Jun., 2009 Unit: RMB
Items Notes
No. This period
Same period of last
year
I. Cash flows arising from operating activities:
Cash received from selling commodities and
providing labor services
34,787,565.52 47,465,384.70
Write-back of tax received -
Other cash received concerning operating
activities
18,850,805.14 40,424,830.33
Subtotal of cash inflow arising from operating
activities
53,638,370.66 87,890,215.03
Cash paid for purchasing commodities and
receiving labor service
25,144,732.11 42,762,943.90
Cash paid to/for staff and workers 5,707,601.16 10,430,435.21
Taxes paid 292,511.20 1,020,433.27
Other cash paid concerning operating activities 27,429,797.06 28,000,389.23
Subtotal of cash outflow arising from operating
activities
58,574,641.53 82,214,201.61
Net cash flows arising from operating
activities
-4,936,270.87 5,676,013.42
II. Cash flows arising from investing activities:
Cash received from recovering investment 551,770.00
Cash received from investment income 330,596.54
Net cash received from disposal of fixed,
intangible and other long-term assets
1,773,855.00
Net cash received from disposal of subsidiaries
and other units
Other cash received concerning investing
activities
Subtotal of cash inflow from investing activities - 2,656,221.54
Cash paid for purchasing fixed, intangible and
other long-term assets
8,760.00 441,208.45
Cash paid for investment 4,467,830.00
Net cash paid for subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 8,760.00 4,909,038.45
Net cash flows arising from investing activities -8,760.00 -2,252,816.91
III. Cash flows arising from financing activities
Cash received from absorbing investment75
Cash received from loans 28,000,000.00 30,000,000.00
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 28,000,000.00 30,000,000.00
Cash paid for settling debts 30,000,000.00
Cash paid for dividend and profit distributing
or interest paying
497,639.00 831,400.00
Other cash paid concerning financing activities 12,000,000.00 31,600,000.00
Subtotal of cash outflow from financing activities 42,497,639.00 32,431,400.00
Net cash flows arising from financing
activities
-14,497,639.00 -2,431,400.00
IV. Influence on cash due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents -19,442,669.87 991,796.51
Add: Balance of cash and cash equivalents at the
period -begin
39,281,486.67 37,419,712.13
VI. Balance of cash and cash equivalents at the
period–end
19,838,816.80 38,411,508.64
Principal of the Company: Person in charge of accounting works:
Person in charge of accounting institutes:76
Consolidated Statement on Changes of Owners' Equity (This Period)
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jun. 30, 2009 Unit: RMB
Amount in this report period
Owners' equity attributable to the parent company
Items
Share capital
Capital
reserves
Less:
Treasury
Stock
Surplus reserves Retained profit
Balance of the
conversion of
foreign currency
list
Minority interest
Total owners’
equity
I. Balance at the end of the last year 266,071,320.00 281,245,215.96 - 21,908,064.19 -230,420,103.14 547,477.12 4,387.09 339,356,361.22
Add: Retroative adjustment occurred
by enterprise merger under the
common control
-
Changes of accounting policy
-
Error correction of the last period
-
Others
-
II. Balance at the beginning of this
year
266,071,320.00 281,245,215.96 - 21,908,064.19 -230,420,103.14 547,477.12 4,387.09 339,356,361.22
III. Increase/ Decrease in this year
(Decrease is listed with'"-")
- - - - 9,878,539.22 -362,928.03 - 9,515,611.19
(I) Net profit 9,878,539.22 9,878,539.22
(II) Profits and losses calculating into
owners' equity
- - - - - -362,928.03 - -362,928.03
1. Net changing amount of fair value
of financial assets available for sale
-
2. Effect of changes of other owners'
equity of invested units under equity
method
-77
3. Effect of income tax related to
owners' equity
-
4. Conversion margin in foreign
currency report -362,928.03 -362,928.03
5.Others
-
Total of (I)and (II) - - - - 9,878,539.22 -362,928.03 - 9,515,611.19
(III) Owners' devotion and decreased
capital
- - - - - - -
-
1. Owners' devotion capital
-
2. Amount calculated into owners'
equity paid in shares
-
3. Others
-
(IV) Profit distribution
-
1. Withdrawal of surplus reserves
-
2. Withdrawal of general risk
provisions
-
3. Distribution for owners
(shareholders)
-
4. Others
-
(V) Carrying forward internal owners'
equity
-
1.Capital reserves conversed to capital
(share capital)
-
2. Surplus reserves conversed to
capital (share capital)
-
3. Remedying loss with profit surplus
-
4.Others
-78
IV. Balance at the end of this report
period
266,071,320.00 281,245,215.96 - 21,908,064.19 -220,541,563.92 184,549.09 4,387.09 348,871,972.41
Principal of the Company: Person in charge of accounting works: Person in charge of accounting institutes:79
Consolidated Statement on Changes of Owners' Equity (Last Period)
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jun. 30, 2009 Unit: RMB
Amount in the same period of last year
Owners' equity attributable to the parent company
Items
Share capital
Capital reserves
Less:
Treasury
Stock
Surplus reserves Retained profit Others
Balance of
the
conversion
of foreign
currency
list
Minority
interest
Total owners’
equity
I. Balance at the end of the last year 266,071,320.00 281,245,215.96 21,908,064.19 -252,975,729.28 316,248,870.87
Add: Retroative adjustment occurred
by enterprise merger under the
common control
-
Changes of accounting policy -
Error correction of the last period -
Others -
II. Balance at the beginning of this
year
266,071,320.00 281,245,215.96 - 21,908,064.19 -252,975,729.28 - 316,248,870.87
III. Increase/ Decrease in this year
(Decrease is listed with'"-")
- - - - 15,996,897.71 - 4,425.80 16,001,323.51
(I) Net profit 15,996,897.71 15,996,897.71
(II) Profits and losses calculating into
owners' equity
- - - - - - -
1. Net changing amount of fair value
of financial assets available for sale
-
2. Effect of changes of other owners'
equity of invested units under equity
method
-80
3. Effect of income tax related to
owners' equity
-
4. Conversion margin in foreign
currency report
5.Others -
Total of (I)and (II) - - - - 15,996,897.71 - 15,996,897.71
(III) Owners' devotion and decreased
capital
4,425.80 4,425.80
1. Owners' devotion capital 4,425.80 4,425.80
2. Amount calculated into owners'
equity paid in shares
-
3. Others -
(IV) Profit distribution -
1. Withdrawal of surplus reserves -
2. Withdrawal of general risk
provisions
-
3. Distribution for owners
(shareholders)
-
4. Others -
(V) Carrying forward internal owners'
equity
-
1.Capital reserves conversed to capital
(share capital)
-
2. Surplus reserves conversed to
capital (share capital)
-
3. Remedying loss with profit surplus -
4.Others -
IV. Balance at the end of this report 266,071,320.00 281,245,215.96 - 21,908,064.19 -236,978,831.57 - 4,425.80 332,250,194.3881
period
Principal of the Company: Person in charge of accounting works: Person in charge of accounting institutes:
Statement on Changes of Owners' Equity of Parent Company (This Period)
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jun. 30, 2009 Unit: RMB
Amount in this report period
Items Share capital)
Capital reserves
Less:
Treasury
Stock
Surplus reserves Retained profit Others Total owners’ equity
I. Balance at the end of the last
year
266,071,320.00 279,130,089.16 - 19,184,672.34 -268,380,836.60 - 296,005,244.90
Add: Changes of accounting policy -
Error correction of the last period -
Others -
II. Balance at the beginning of this
year
266,071,320.00 279,130,089.16 - 19,184,672.34 -268,380,836.60 - 296,005,244.90
III. Increase/ Decrease in this year
(Decrease is listed with'"-")
- - - - 8,748,313.22 - 8,748,313.22
(I) Net profit 8,748,313.22 8,748,313.22
(II) Profits and losses calculating
into owners' equity
- - - - - - -
1. Net changing amount of fair
value of financial assets available
for sale
-
2. Effect of changes of other
owners' equity of invested units
under equity method
-
3. Effect of income tax related to -82
owners' equity
4. Others -
Total of (I)and (II) - - - - 8,748,313.22 - 8,748,313.22
(III) Owners' devotion and
decreased capital
-
1. Owners' devotion capital -
2. Amount calculated into owners'
equity paid in shares
-
3. Others -
(IV) Profit distribution -
1. Withdrawal of surplus reserves -
2. Distribution for owners
(shareholders)
-
3. Others -
(V) Carrying forward internal
owners' equity
-
1. Capital reserves conversed to
capital (share capital)
-
2. Surplus reserves conversed to
capital (share capital)
-
3. Remedying loss with profit
surplus
-
4.Others -
IV. Balance at the end of this
report period
266,071,320.00 279,130,089.16 - 19,184,672.34 -259,632,523.38 - 304,753,558.12
Principal of the Company: Person in charge of accounting works: Person in charge of accounting institutes:83
Statement on Changes of Owners' Equity of Parent Company (Last Period)
Prepared by Shandong Zhonglu Oceanic Fishery Company Limited Jun. 30, 2009 Unit: RMB
Amount in the same period of last year
Items Share capital
Capital reserves
Less:
Treasury
Stock
Surplus reserves Retained profit Others Total owners’ equity
I. Balance at the end of the last year 266,071,320.00 279,130,089.16 19,184,672.34 -290,359,789.60 274,026,291.90
Add: Changes of accounting policy - -
Error correction of the last period -
Others -
II. Balance at the beginning of this year 266,071,320.00 279,130,089.16 - 19,184,672.34 -290,359,789.60 - 274,026,291.90
III. Increase/ Decrease in this year (Decrease is
listed with'"-")
- - - - 15,055,814.09 - 15,055,814.09
(I) Net profit 15,055,814.09 15,055,814.09
(II) Profits and losses calculating into owners'
equity
- - - - - - -
1. Net changing amount of fair value of financial
assets available for sale
-
2. Effect of changes of other owners' equity of
invested units under equity method
-
3. Effect of income tax related to owners' equity -
4. Others -
Total of (I)and (II) - - - - 15,055,814.09 - 15,055,814.0984
(III) Owners' devotion and decreased capital -
1. Owners' devotion capital -
2. Amount calculated into owners' equity paid in
shares
-
3. Others -
(IV) Profit distribution -
1. Withdrawal of surplus reserves -
2. Distribution for owners (shareholders) -
3. Others -
(V) Carrying forward internal owners' equity -
1. Capital reserves conversed to capital (share
capital)
-
2. Surplus reserves conversed to capital (share
capital)
-
3. Remedying loss with profit surplus -
4.Others -
IV. Balance at the end of this report period 266,071,320.00 279,130,089.16 - 19,184,672.34 -275,303,975.51 - 289,082,105.99
Principal of the Company: Person in charge of accounting works: Person in charge of accounting institutes:85
Section VIII. Documents Available for References
(I) Text of Semi-annual Report carried with the personal signature of Chairman of the
Board;
(II) Text of financial report carried with the signature and seals of principal of the unit,
principal of accounting work, and principal in charge of accounting organization;
(III) Text of all documents that have been publicly disclosed on newspapers and periodicals
designated by CSRC during the report period;
(IV) Text of Articles of Association of the Company;
(V) Other relevant data.
Shandong Zhonglu Oceanic Fishery Company Limited
Chairman of the Board: Wang Zhao’an
August 7, 2009
