- 15 -
山东省中鲁远洋渔业股份有限公司
SHANDONG ZHONGLU OCEANIC FISHERIES COMPANY LIMITED
Full-Text of Semi-Annual Report 2010
August 27, 2010Contents
SECTION I. IMPORTANT NOTICE--------------------------------------------------------1
SECTION II. COMPANY PROFILE--------------------------------------------------------1
SECTION III. CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT
SHARES HELD BY MAIN SHAREHOLDERS------------------------------------------3
SECTION IV. PARTICULARS ABOUT DIRECTORS, SUPERVISORS AND
SENIOR EXECUTIVES----------------------------------------------------------------------5
SECTION V. REPORT OF BOARD OF DIRECTORS-----------------------------------6
SECTION VI. SIGNIFICANT EVENTS----------------------------------------------------9
SECTION VII. FINANCIAL REPORT-----------------------------------------------------14
SECTION VIII. DOCUMENTS AVAILABLE FOR REFERENCE--------------------861
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 Li Wenyi and Xiang Kaijin absented the meeting for business trip and
separately delegated Wang Zhao’an and Song Wenjian in written for attending and
voting 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.
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 Ying2
Contact Address: No. 43, Heping Road, Jinan, Shandong
Tel: (86) 531-86553278, (86) 531-86553276
Fax: (86) 531-86982906
E-mail: zlzqb@163.com
(VI) Newspapers Chosen for Disclosing the Information of the Company:
Securities Times and Hong Kong Commercial Daily
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: July 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: 370102863043102
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 526,605,443.26 481,539,304.42 9.36%
Owners’ equity attributable to shareholders
of the listed company
365,708,275.64 354,296,875.06 3.22%
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)
1.37 1.33 3.01%
This report period
(Jan. to Jun.)
The same period
of last year
Increase/decrease in this report
period year-on-year (%)
Total operating income 198,750,904.41 112,869,854.62 76.09%
Operating profit 11,526,612.76 5,203,008.96 121.54%
Total profit 11,696,413.76 9,878,539.22 18.40%
Net profit attributable to shareholders of the
listed company
11,357,665.16 9,878,539.22 14.97%
Net profit attributable to shareholders of the
listed company after deducting
11,187,864.16 9,875,404.72 13.29%3
non-recurring gains and losses
Basic earnings per share (RMB/Share) 0.04 0.04 0.00%
Diluted earnings per share (RMB/Share) 0.04 0.04 0.00%
Return on equity (%) 3.11% 2.83% 0.28%
Net cash flow arising from operating
activities
30,539,683.53 24,228,719.70 26.05%
Net cash flow per share arising from
operating activities (RMB/Share)
0.11 0.09 22.22%
(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)
Government subsidies calculated in current gains and loss
excluding the one closely related to normal operation
business and with constant fixed amount of offer in line
with rules of nation policy and according to certain
standard
155,700.00
Other non-operating income and expense excluded the
aforementioned items
14,101.00
Total 169,801.00 -
(III) The Company had no difference between CAS and IAS in this period.
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, 2010, the Company had totally 16,509 shareholders, including
16,503 shareholders holding foreign capital shares in circulating listed domestically.
III. Particulars about shares held by main shareholders
Total shareholders 16,509
Particulars about the shares held by the top ten shareholders
Full Name of shareholder
Nature of
shareholders
Shareholding
proportion
Total amount
of shares held
Amount of
non-circulating
shares held
Amount of shares
pledged or frozen
SHANDONG
STATE-OWNED ASSETS
INVESTMENT
HOLDING CO., LTD.
State-owned
legal person
33.07% 88,000,000 88,000,000 0
SHANDONG LUXIN
INVESTMENT
HOLDINGS GROUP CO.,
LTD.
State-owned
legal person
14.18% 37,731,320 37,731,230 04
CHINA HEAVY
AUTOMOBILE GROUP
JINAN TRUCK CO.,
LTD.
State-owned
legal person
0.73% 1,950,000 1,950,000 0
OU YAN PING
Domestic
natural
persons
0.69% 1,829,211 0 0
OU YAN PING
Domestic
natural
persons
0.60% 1,587,738 0 0
YI YING
Domestic
natural
persons
0.41% 1,078,200 0 0
YIN GANG
Domestic
natural
persons
0.39% 1,050,000 0 0
OU WEN QING
Foreign
natural
persons
0.38% 1,007,900 0 0
HUANG JIA YI
Foreign
natural
persons
0.34% 911,487 0 0
HE BIN
Foreign
natural
persons
0.32% 838,199 0 0
Particulars about the shares held by the top ten circulating shareholders
Full name of shareholders Circulation share held Type of shares
OU YAN PING 1,829,211 Domestically listed foreign shares
OU YAN PING 1,587,738 Domestically listed foreign shares
YI YING 1,078,200 Domestically listed foreign shares
YIN GANG 1,050,000 Domestically listed foreign shares
OU WEN QING 1,007,900 Domestically listed foreign shares
HUANG JIA YI 911,487 Domestically listed foreign shares
HE BIN 838,199 Domestically listed foreign shares
WANG DONG SHENG 818,500 Domestically listed foreign shares
CAI XI LONG 741,901 Domestically listed foreign shares
DBS VICKERS (HONG KONG) LTD
A/C CLIENTS
700,000 Domestically listed foreign shares
Explanation on associated
relationship or accordant
action among the top ten
shareholders of circulation
share
Among the top ten shareholders, SHANDONG STATE-OWNED ASSETS
INVESTMENT HOLDING CO., LTD. and LUXIN GROUP belong to provincial
state-owned enterprise under the control of State-owned Assets Supervision and
Administration Commission of Shandong; CHINA HEAVY AUTOMOBILE GROUP
JINAN TRUCK CO., LTD. was the sponsor shareholder of the Company. The
abovementioned shareholders existing no associated relationship or belong to the5
concerted actors as specified in the Measures for the Administration of Information
Disclosure of Shareholder Equity Changes of Listed Companies; other shareholders are
the circulation shareholders with domestic listed foreign shares. The Company is not
aware whether there exist associated relationships or belongs to the concerted actors as
specified in the Measures for the Administration of Information Disclosure of
Shareholder Equity Changes of Listed Companies.
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
Regarding presidency of board of directors and supervisory committee was due, on
June 10th of 2010, the General Shareholders’ Meeting 2009 elected Wang Zhao’an, Li
Wenyi, Xiang Kaijin, Xi Jianbin, Song Wenjian and Liu Zhihui as Directors of the
Board of the Company; Hu Yuanmu, Xu Haifeng and Zhong Zhigang as Independent
Director of the Board of the Company. Totally 9 Directors formed the 4th Board of
Directors; meanwhile the Meeting elected Wu Zongchang and Yang Gongmin as
supervisor of shareholder representative of Supervisory Committee of the Company
who formed the 4th Supervisory Committee of the Company with staff supervisors of
Chi Min, Song Jinghai and Shang Qinghua who were elected in the 4th Meeting of
General Staff Representative.
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 5065.65 tons. The Company realized operating income of RMB
198.7509 million, with an increase rate of 76.09% over the same period of last year;
operating cost of RMB 173.2452 million, with an increase rate of 79.88% over the
same period of last year; operating profit of RMB 11.5266 million, with an increase of
121.54% over the same period of last year, and the net profit attributable to
shareholders of listed company of RMB 11.3577 million with an increase of 14.97%
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) Constitution of main business income and main business profit:
(1) Sub-industry, sub-variety6
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 19,875.09 17,324.52 12.83% 76.09% 79.88% -1.84%
Main operations classified according to products
Tunny 6,903.78 5,931.81 14.08% 51.79% 60.49% -4.66%
(2) Sub-region
Unit: RMB’0000
Region
Main business
income
Increase or decrease of main business
income compared to the same time of last
year (%)
Mainland of China 3,054.18 43.49%
Taiwan of China 5,465.11 12.26%
Japan 8,082.54 178.56%
Spain 642.29 164.46%
Singapore 1,014.70 600.37%
Germany 72.04 -72.23%
Ghana 532.62 90.80%
Israel 155.81
Korea 689.45
USA 51.85
Others 19.85 -94.61%
(III) Change in main operations income and profit structure and reason for the changes
in the report period
Unit: RMB
Items Jan.-Jun. of 2010 Jan.-Jun. of 2009 Increase / decrease (%)
Operating income 198,750,904.41 112,869,854.62 76.09
Operating cost 173,245,180.55 96,310,695.01 79.88
Business tax and
surcharges
379,132.54 563,412.75
-32.71
Financial expense 1,539,593.35 406,878.53 278.39
Loss of assets
devaluation
813,618.98 -440,778.26
284.59
Operating profit 11,526,612.76 5,203,008.96 121.54
Non-operating
income
210,886.00 4,707,724.29
-95.527
Reason for change:
1. Operating income of this period increased by 76.09% compared to the one at the same period of
last year, mainly due to that subsidiary Yantai Food Company increased efforts on acquisition and
processing export business of return shipment of self-hunting tuna, so export income increased;
increased sales amount of fish catch over tuna of Haiyan Branch led to increased income;
subsidiary HIC newly purchased a refrigerated transport vessel on Oct of last year, the rent
increased.
2. Operating cost of this period increased by 79.88% compared to the one at the same time of last
year mainly due to increased cost of matching for increased income.
3. Business tax and surcharges of this period decreased by 32.71% compared to the one at the
same time of last year, mainly due to that operating tax over labor income from international
transport got by subsidiary Shipping Company was eliminated.
4. Financial expense of this period increased by 278.39% compared to the one at the same time of
last year, mainly due to that large change on Euro and Japanese yen led to increased exchange
losses and interest income of pledged deposit existed at the same time of last year.
5. Loss from assets devaluation increased by 284.59% compared to the one at the same time of
last year, mainly due to increased accruing provision for bad debts of accounts receivable of the
Company in this period.
6. Operating profit increased by 121.54% compared to the one at the same time of last year,
mainly due to increased income of this period.
7. Non-operating income of this period decreased by 95.52% compared to the one at the same time
of last year, mainly due to that the Company received fuel subsidies from government.
(IV) Explanation on assets structure and its change in the report period
Unit: RMB
Item Jun 30th of 2010 Dec 31st of 2009 Increase / decrease (%)
Account receivable 25,641,360.10 11,195,724.60 129.03
Accounts paid in advance 12,334,305.13 9,008,430.89 36.92
Other accounts receivable 2,033,257.76 4,849,231.23 -58.07
Inventory 136,993,685.01 101,980,064.70 34.33
Short-term loan 19,656,574.49 41,482,275.22 -52.61
Accounts payable 115,626,279.16 60,078,045.19 92.46
Accounts received in
advance 1,094,200.36 8,850,484.61 -87.64
Tax payable -6,216,683.90 -2,596,546.59 -139.42
Other accounts payable 21,170,518.56 11,318,883.25 87.04
Reason for change:
1. Net accounts receivable at period-end increased by 129.03% compared to the one at
period-begin, mainly due to increased sales account receivable of export business of subsidiary
Yantai Food Company.
2. Accounts prepaid at period-end increased by 36.92% compared to the one at period-begin,
mainly due to that accounts prepaid for purchasing materials of tuna of Yantai Food Company in
this period increased.
3. Net other accounts receivable at period-end decreased by 58.07% compared to the one at
period-begin, mainly due to that subsidiary Yantai Food Company withdrew export tax rebates of
last year in this period.
4. Net amount of inventory at period-end increased by 34.33% compared to the one at
period-begin, mainly due to increased material for tuna and red fish purchased by subsidiary8
Yantai Food Company in this period.
5. Short-term loan at period-end decreased by 52.61% compared to the one at period-begin,
mainly due to that the Company and subsidiary HIC Company returned bank loan in this period.
6. Accounts payable at period-end increased by 92.46% compared to the one at period-begin,
mainly due to increased accounts payable for raw material of subsidiary Yantai Food Company in
this period.
7. Accounts received in advance at period-end decreased by 87.64%, mainly due to that the
accounts of goods received in advance from clients of Yantai Food Company were confirmed as
operating income in this period.
8. Accounts payable at period-end decreased by 139.42% compared to the one at period-begin,
mainly due to that subsidiary Yantai Food Company purchased fish leading to increased VAT input
tax in this period.
9. Other accounts payable at period-end increased by 87.04% compared to the one at period-begin,
mainly due to that the Company and subsidiary Shipping companies and HIC Corporation accrued
ship repair costs.
(V) Change in constitution of cash flow and reasons for the change in the report
period
Unit: RMB
Item Jan.-Jun. 2010 Jan.-Jun. 2009
Increase /
decrease (%)
Net cash flows arising from operating
activities:
30,539,683.53 24,228,718.70 26.05
Including: 1.Cash received from selling
commodities and providing labor services
200,778,843.11
101,115,502.7
2
98.56
2.Written-back of tax received 12,110,261.80 2,689,668.31 350.25
3.Other cash received
concerning operating activities 5,879,166.35 18,170,338.95 -67.64
Minus: 1. Cash paid for purchasing
commodities and receiving labor service 147,592,413.15 72,943,945.68 102.34
2. Cash paid to/for staff and workers 18,319,490.81 15,682,054.54 16.82
3. Taxes paid 1,500,486.79 1,127,216.05 33.11
4. Other cash paid concerning
operating activities 20,816,196.98 7,993,574.01 160.41
Net cash flows arising from investing
activities: -6,172,871.09 -1,853,227.11 -233.09
Net cash received from disposal of
fixed, intangible and other long-term assets 12,000.00
Minus: Cash paid for purchasing
fixed, intangible and other long-term assets 6,184,871.09 1,853,227.11 233.74
Net cash flows arising from financing
activities: -22,968,661.22 -55,339,982.08 58.50
Cash received from loans 5,390,423.27 46,020,000.00 -88.29
Minus: 1.Cash paid for repaying debts 27,216,124.00 88,025,150.00 -69.08
2. Cash paid for dividend and profit
distributing or interest paying 1,142,960.49 1,334,832.08 -14.37
3. Other paid cash related to financing
activities
- 12,000,000.00 -100.00
Net increase in cash and cash equivalent 1,398,151.22 -32,964,489.49 104.24
Explanation of reason for change
1. Net amount of cash flow arising from operating activities in this period increased by 26.05%9
compared to the one at the same time of last year, mainly due to that export corporate sales income
and tax rebates received by subsidiary Yantai Food Company increased in this period.
2. Net amount of cash flow arising from investment activities in this period decreased by 233.09%
compared to the one at the same time of last year, mainly due to increased investment in fixed
assets of the Company in this period.
3. Net amount of cash flow arising from financing activities in this period increased by 58.50%
compared to the one at the same time of last year, mainly due to amounts paid for bank loan of the
Company decreased in this period.
(VI)Operation and performance of the main controlling subsidiaries of the Company
Unit: RMB
Marine HIC Yantai Grocery
Total assets 21,693,624.80 96,618,262.30 206,824,009.83
Net assets 10,095,756.91 88,591,955.69 79,233,744.85
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 12,476,146.00 75,593,300.00
Business character and main
product or service
Undertake to
transport
international
shipping,
refrigeration,
marine products
Self-running
business of
refrigerated
transportation
Freezing, refrigerating,
processing and sales of
marine products, birds
and house animals, and
fruits and vegetables,
etc.
Operating income 9,019,080.28 24,662,753.75 139,988,460.22
Operating profit -2,236,993.24 9,823,988.37 2,959,974.77
Net profit -2,200,062.30 9,823,988.37 2,740,784.11
(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) Operation problems and difficulties
1. Weak demand of international market affected development of fishing, seafood
processing and other similar industries with main external orientation.
2. Difficulties in financing restricted implementation of promotion on assets quality
and extending the industrial chain plan of the Company.
3. Increased labor price led to increased operating costs.
4. There were lots of pirate activities in part fishing areas, thus the production and
operation of the Company were influenced.
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.10
Section VI. Significant Events
I. Administration of the Company
In reporting period, strictly in line with the requirements of "Company Law",
"Securities Law", " Governance Rules of Listed Corporate" and " Listing Rules of
Shenzhen Stock Exchange" and other laws and regulation all along, the Board of
Directors continuously perfected corporate governance structure, normalized
operation of the Company, and prevented production and operation risks. Recently the
Company consummated many rules and regulations through serious self-exam,
self-correction and complement, thus governance level of the Company was further
improved. Real condition of governance of the Company basically kept in line with
related documents of China Securities Regulatory Commission.
Main tasks in reporting period:
1. According to requirement of supervisory department and its own actual situation,
the 12th Meeting of the 3rd Board of Directors audited and approved "Accountability
System on Major Errors in Annual Report Disclosure," "Management System of
Insider Information and Insiders", "Management System on Submitting and Using of
External Information", thus completed relevant rules on internal information
disclosure and inventory and management.
2. In accordance with requirements of "Regulatory Circular about the Implementation
of Regulatory Action in Hundred Days Over Listed Companies in Shandong Area "
issued by Shandong Province Securities Regulatory Bureau, the Company particularly
organized staffs to totally troubleshoot independence, occupation and guarantee of
illegal capital, internal control system, preparation and disclosure of information
report and other conditions of the Company. Meanwhile the Company seriously and
comprehensively reported to Shandong Province Securities Regulatory Bureau from 6
aspects which respectively refers to condition on behaviors of controlling
shareholders and actual controllers and independence of listed companies, condition
on establishment of long-acting mechanism for preventing controlling shareholders
and actual controllers from occupying assets, condition on establishment and
perfection of management system for listed companies financing capitals, condition
on establishment and execution of internal control system of listed companies,
condition on establishment of internal troubleshoot, gathering and disclosure
mechanism for sensitive information of listed companies, condition on establishment
and execution of information disclosure system of listed companies.
3. According to requirements of Regulatory Circular about Further Resolving the
Industry Competition and Reducing Related Transactions issued by Shandong
Province Securities Regulatory Bureau and relevant rules of previously conducted
supervisory Hundred Days activities for listed companies, the Company organized
related department to make self-exam on problems in industry competition and related
transaction. Through serious self-exam, the Company had no problems on industry
competition with controlling shareholders, related enterprises and other related parties,
either related transaction events. Every work wasn’t against the rules, conforming to
related rules of supervisory department.
II. Implementation of 2009 Profit Distribution Plan
The Company did not distribute profits nor convert public reserve into share capital in
2009.
III. 2010 Semi-annual Distribution Preplan11
The Company would neither distribute profits nor convert public reserve into share
capital in the semi-annual of 2010.
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 implementation
(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.
VIII. Guarantees
In reporting period, in order to satisfy demands of subsidiary Shandong Zhonglu
Oceanic (Yantai) Foods Co., Ltd. enlarging production and operation scale, the
Company provided comprehensive credit authorization of RMB 20 million – half of
the comprehensive credit authorization of RMB 40 million received from China
Minsheng Banking Corp., Ltd. Jinan Branch to the abovementioned subsidiary 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 77.027 million, including, total amounts of guarantee for controlling
subsidiaries were RMB 33.9893 million, taking up 21.06% of net assets of the
Company till June 30, 2010.
Independent opinion issued by Independent Directors Mr. Hu Yuanmu, Mr. Xu
Haifeng and Mr. Zhong Zhigang were as follow:
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.
The Company ever offered guarantee, which was changed to external guarantee
because the Company sold its equity, for long-term loan of previous subsidiary
Qingdao Double Whale Pharmaceutical Co., Ltd. (hereinafter referred to as Double
Whale Medicine). Because Double Whale Medicine paid partial loan in 2009,
currently guarantee the Company took for it became RMB 43.0377 million. The
Company constantly attached importance to lifting security work over left guarantee
amounts of the Company. Main leaders and staffs of related department discussed and
solved security lifting events with Double Whale Medicine and the actual controller
Shenzhen Jing Shen Investment and Development Co., Ltd (Jingshen Company).
With gathering effort, on February of 2010, the Company and Jingshen Company
signed equity pledge agreement which ruled that Jingshen Company takes holding
45.5% equity of Qingdao International Fashion City Property Investment Co., Ltd.12
(valued RMB 67.1125 million) as counter-guarantee over the above guarantee to
pledge to the Company. When Double Whale Medicine can’t afford to repay, the
Company could dispose this equity. Accounts received could be used to pay for loan
principal and interest, tax of equity auction and transfer and other related expense
arising from this pledge. Then registration proceedings of equity pledge were
completed on March 10 in Qingdao Shenyang City Industry and Commerce Branch.
Presently production and operation of Double Whale Medicine are in a normal
situation, parties with problems are actively taking measurements to strive to
complete the security lifting as soon as possible. We believe the Company had no
condition against the above rules on the guarantee event. We have urged the Company
to complete security lifting as soon as possible and constantly pay attention to the
process of next step.
XI. Commitment
There is no commitment of the Company in the report period.
X. 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.
XI. Other material events and its influences, and analysis explanations on its solutions
There was no other material event.
XII. 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).
Date Place Way
The received
parties
Contents discussed and
materials were supplied
2010.3.31 Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
2010.4.13 Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
2010.4.27 Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
2010.5.21 Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
2010.6.11 Jinan
Phone
communication
Individual
investor
Operation of the Company,
no material were supplied
XIII. Index of information on other significant events13
In the report period, all the important events of the Company were published on China
Securities Journal, Hong Kong Commercial Daily and Juchao information website
http://www/cninfo.com.cn. Details are as follows:
Notice No. Content of notice Time
2010-001 Notice on change of oversea newspaper for information
disclosure
2010.1.7
2010-002 Notice on Resolution of the 20th Meeting of 3rd Board of
Directors
2010.3.31
2010-003 Notice on Decision of the 12th Meeting of 3rd of Supervisory
Committee
2010.3.31
2010-004 Summary of Annual Report of 2009 2010.3.31
2010-005 Notice on Forecast of Performance of the First Quarter in
2010
2010.4.13
2010-006 Summary of Report of the First Quarter in 2009 2010.4.27
2010-007 Notice on Resolution of the 22nd Meeting of the 3rd Board of
Directors
2010.5.21
2010-008 Notice on Resolution of the 14th Meeting of the 3rd
Supervisory Committee
2010.5.21
2010-009 Notice on Holding Shareholders’ General Meeting 2009 2010.5.21
2010-010 Notice on Resolution of the 23rd Meeting of the 3rd Board of
Directors
2010.6.5
2010-011 Notice on Offering Guarantee for Subsidiary 2010.6.5
2010-012 Notice on Resolution of Shareholders’ General Meeting
2009
2010.6.1114
Section VII. Financial Report (Un-audited)
I. Accounting statement (Attached)
II. Notes to accounting statements
SHANDONG ZHONGLU OCEANIC FISHERIES CO., LTD
Notes to the Semi-annual Financial Statements 2010
(All amounts are stated in RMB 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 share 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.15
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.
Corporate industry: overseas fishing industry.
Corporate major products: tuna and its products.
Corporate registered 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.
Corporate basic organization structure: Board of shareholders, Board of directors,
office of the general manager, departments of human resources, finance, corporate
operation, overseas management, real estate, and the office of auditory supervision.
Three branches are Shandong Zhonglu Overseas Qingdao Haiwei Branch, Shandong
Zhonglu Overseas Qingdao Haiyan Brsnch, and Shandong Zhonglu Overseas
Qingdao Refrigeration Branch. Three wholly-owned subsidiaries are Shandong
Zhonglu Overseas Fishery Transportation, Shandong Zhonglu Overseas (Yantan)
Food Co., Ltd., and HABITAT INTERNATIONAL CORP. The operation entity
–YAW ADDO FISHERIES COMPANY LIMITED, is controlled by operation lease.
II. Main accounting policies, estimation and previous errors
1. Preparation basis of Financial Statements
The Financial Statements of the Company are based on continual operations, in line
with actual transactions and events, and pursuant to requirements of Corporate
Accounting Principles – Basic Principles, and the No. 38 specific principle, released
by the Treasury Ministry on 15th February 2006, and the application guidance,
interpretation and other relevant rules released consequently and based on the
following important accounting policies and estimation.
2. Declaration of obedience to corporate accounting principles
The Financial Statements are up to requirements of corporate accounting principles
and also a true and thorough reflection to the relevant information as the Company’s
financial position, operation results, and cash flow.
3. Accounting period
The Company’s accounting year is Gregorian calendar year, namely from 1st January
to 31st December of every year.
4. Bookkeeping standard currency
The RMB is taken as the bookkeeping standard currency.
5. Accounting methods for consolidation of enterprises under the same control or
otherwise16
(1) Consolidation of enterprises under the same control
As for the consolidation of enterprises under the same control, the assets and
liabilities received by the consolidating party in the consolidation are measured on the
book value of the consolidated party on the consolidation day.
(2) Consolidation of enterprises not under the same control
As for the consolidation not under the same control, the consolidation cost is the fair
value of the assets paid, liabilities incurred or committed, and equity securities offered,
for obtaining the control right over the purchased party. As for the consolidation
achieved by several exchange transactions, the consolidation cost is the total of each
single transaction. All expenses of the purchasing party for and directly related to the
consolidation are reckoned into the corporate consolidation cost.
The difference of the fair value of the consolidation cost higher than that of the
purchased party’s recognizable net assets is recognized as business fame by the
purchasing party; however, as for the difference of the fair value of the consolidation
cost lower than that of the purchased party’s recognizable net assets, it is reckoned
into the current loss/gain by the purchasing party, as the result remains unchanged
after the check.
6. Preparation methods for consolidated financial statements
Included in the consolidation scope are the subsidiaries over which the Company has
the control right or the entities for which the Company has the special purpose.
As the Company’s financial statements are prepared pursuant to the No. 33 Corporate
Accounting Principles – Consolidated Financial Statements and relevant rules, all
substantive inside transactions and dealings within the consolidation scope are
balanced out during the consolidation. As for the shareholders’ equity not attributable
to the Parent Company in the subsidiaries, it is specifically listed as the minority
shareholders’ equity in the shareholders’ equity.
As for the inconsistency between the subsidiaries and the Company in the accounting
policies and periods, the necessary adjustment is made on the subsidiaries’ financial
statements in the preparation of the consolidated financial statements according to the
Company’s accounting policies and periods.
As for the subsidiaries obtained in the consolidation of enterprises not under the same
control, the adjustment is made on the individual financial statements on the basis the
fair value of the identifiable assets on the purchase day. As for the subsidiaries
obtained under the same control, the consolidation is regarded as starting at the
Year-beginning of the consolidation period, and the assets, liabilities, operation results
and the cash flow are reckoned into the consolidated financial statements from the
year-beginning in the consolidation period.
7. Determination criteria of cash equivalent in cash flow statements
The cash recognized in the preparation of the cash flow statements, is the Company’s
storage cash and deposits available for payment anytime.
The cash equivalents recognized in the preparation of the cash flow statements, are
investment of short-term (due in three months from the purchase day), strong mobility
and easy transfer to known sum cash, and slight risk of value vibration, held by the
Company.
8. Foreign currency exchange and the conversion of the foreign currency
statements17
(1) Foreign currency exchange
The foreign currency exchange is booked on the current exchange rate on the
transaction day and converted in the bookkeeping standard currency. On the balance
sheet day, the monetary items are converted on the current rate on the balance sheet
day, and the non-monetary items measured on the historic cost are still measured by
the original bookkeeping rate with the sum of the bookkeeping standard currency
unchanged.
As for the loss/gain of the foreign currency exchange, the rest is all reckoned into to
the current loss/gain, in addition to the exchange difference from the foreign currency
loan related to the construction and production of the assets qualified for the
capitalization, and the assets cost reckoned as up to the capitalization before the assets
expectantly available and saleable.
(2) Conversion of foreign currency financial statements
Upon the conversion of the foreign currency financial statements of the controlling
subsidiaries, joint enterprises, and the affiliated enterprises on the bookkeeping
standard currency different from the Company’s, the accounting check and
preparation of the consolidated financial statements are made.
Assets and liabilities items in the balance sheet, are converted on the current rate on
the balance sheet day; owners’ equity items besides the “un-distributed profit” item,
the other items are converted on the actual rate. Incomes and expenses items in the
profit statement are converted on the current rate. The conversion difference of the
foreign currency financial statements is listed specifically in the owners’ equity in the
balance sheet.
The foreign currency cash flow is converted on the current rate on the cash flow
actual day. The cash influenced by the rate fluctuation is listed specifically in the cash
flow statement.
As for the foreign operation, the conversion difference of the foreign currency
statement related to the foreign operation is transferred in proportion into the disposal
of the current loss/gain.
9. Financial instruments
(1) Categories, recognition and measurement of financial instruments
The financial instruments are classified as the financial assets and liabilities.
In the initial recognition, the financial assets are classified as, the financial assets
measured on fair value and with its changes reckoned into the current loss/gain
(including tradable ones and ones designated to be measured on fair value and with its
changes reckoned into the current loss/gain), long-term invest-bonds, account
receivables, and financial assets available for sale. Categories of the financial assets
besides account receivables are dependent on the holding intention and purpose of the
Company and its subsidiaries for the financial assets.
In the initial recognition, the financial liabilities are classified as the financial
liabilities measured on the fair value and with its changes reckoned into the current
loss/gain (including tradable ones and ones designated to be measured on fair value
and with its changes reckoned into the current loss/gain), other financial liabilities.
As the Company becomes one party of the financial instrument contract, the
instrument is recognized as one financial asset or liability.
In the initial recognition, the financial assets or liabilities are measured on fair value;
and the follow-up measurements are also on the fair value, besides the both long-term
invest-bonds and account receivables on the diluted cost, or on historic cost in the18
case of no fair value and no reliable measurement.
The loss/gain from the fair value changes in the follow-up measurement of the
financial assets and liabilities, besides one related to the hedge, is dealt with in the
following methods: ① The financial assets or liabilities measured on the fair value
and with its changes reckoned into the current loss/gain, are reckoned into the fair
value loss/gain; the interest or cash dividend obtained in the assets holding period, is
recognized as the investment return; in disposal, the difference between the sum
actually received and the one booked initially, is recognized as the investment return
with the loss/gain of the fair value change adjusted. ② The fair value change of the
financial assets available for sale, is reckoned into the reserve; the interest on the
actual rate in the holding period, is reckoned into the investment return; the cash
dividend of the stock instrument available for sale is reckoned into the investment
return when the invested unit announces to pay the dividend, is reckoned into the
investment return; in dividend, the difference between the sum actually received and
the book value in deduction of the accumulative fair value change originally booked
into the capital reserve.
(2) Recognition basis of and measurement method for the financial assets
transfer
The Company’s recognition basis of the financial assets transfer: As for the financial
assets with all risks and compensations on their patent transferred, or all risks and
compensations neither maintained nor transferred but the control over the assets given
up, the recognition of the financial asset may terminate.
The Company’s measurement of the financial assets transfer: For the financial assets
are qualified for the recognition termination conditions, the measurement may be
taken on the financial assets transfer, namely the difference is reckoned into the
current loss/gain, between the book value of the transferred financial assets and, the
total of the consideration value received from the transfer and the fair value change
accumulative sum originally booked into the capital reserve.
As for the partly transfer of the financial assets qualified for the recognition
termination conditions, the whole book value of the transferred financial assets is
diluted on the respective relative fair value between the part of recognition
termination and the part of no recognition termination, and the difference is reckoned
into the current loss/gain, between the book value of the part of recognition
termination and, the total of the consideration value of the part of recognition
termination and the fair value change accumulative sum originally booked into the
capital reserve.
(3) Recognition termination conditions of the financial liabilities
The Company’s recognition termination conditions of the financial liabilities: For the
current obligation of the financial liabilities is relieved whole or partly, the
recognition of the financial liabilities or part may be terminated.
(4) Recognition methods of the fair values of the financial assets and liabilities
The Company’s recognition methods of the fair values of the financial assets and
liabilities: as for the financial instrument in the active market, its fair value is
recognized on the quotation in the active market; as for the financial instrument in the
active market, its fair value is recognized by the evaluation method.
The evaluation method consists of as the references to the familiar situation and the
price in the latest market transaction between the two voluntary parties, and the
references to the current fair value of other substantially same financial assets, and the
conversion method of the cash flow. In the evaluation method, the market index is the
preferential and uttermost use, and the index specifically related to the Company and19
its subsidiaries is in less use.
(5) Impairment of financial assets
On the balance sheet day, the impairment check is taken on the book value of the
financial assets besides the ones measured on fair value and with changes reckoned
into the current loss/gain, and as there is objective evidence to the financial assets
impairment, the impairment test may be taken on the financial assets, and the
impairment provision is accrued according to the test result.
Accrual of and test method for impairment of financial assets: the accrual of the
impairment provision is the book value less the current value of the estimative future
cash flow.
The current value of the estimative future cash flow is recognized by the sum on the
discount rate recognized on the estimative future cash flow.
As for the rational estimation for the estimative cash flow on different categories of
the financial assets, it is based on the estimative future cash flow from the continual
use and the final disposal of the financial assets; the conversion rate is the necessary
compensation rate for holding the assets, according to the currency time value in the
current market and taxation-before interest rate of the specific risk of the financial
assets.
(6) Re-classification of financial assets
Main judgment basis of the re-classification of the undue long-term investment as
financial assets available for sale
1) For there are no financial resources available for the continual capital support for
the financial assets, the financial assets has to be due;
2) There is no intention for holding due in the management;
3) Due to the restrictions of the law and the executive rules, or other reasons, it is
impossible for holding the financial assets due;
4) And other indications to the Company’s incapability for holding due.
The re-classification of the undue long-term investment as financial assets available
for sale may be decided by the approval of the Board of Directors.
10. Account receivable
The account receivables in the Company mainly consist of the bill receivable,
long-term account receivable, and other account receivable. On the balance sheet day,
if there is objective evidence to the actual impairment, the impairment loss is
recognized on the difference between the book value and the current value of the
estimative future cash flow.
(1) Recognition principle and accrual method for the preparation of bad debts of
single substantive account
As for the single substantive account receivable, it may be tested singly. If there is
objective evidence to the actual impairment, the bad debts provision may be accrued
according to the difference of the current value of the future cash flow lower than the
book value; as for the one of no actual impairment, the bad debts provision is accrued
on book aging．
(2) Recognition principle on and accrual method for provision for bad debts of
single account receivable not substantive but in a rather risky credit portfolio
As for the Company’s credit policies at the full consideration of risks as different
markets or customers, the accounts not substantive singly, are grouped into a portfolio
of similar credit risk characters on the credit period and aging, and the provision for
bad debts is accrued in proportion with the portfolio balance on the balance sheet day;
details are as follows:20
Category Credit-risk-character portfolio Accrual proportion
Account receivable undue on agreement Credit period 5%
Account receivable due within 1 year (1 year included) Aging 10%
Account receivable due in 1—2-year (2-year included) Aging 30%
Account receivable due in 2 – 3-year (3-year included) Aging 50%
Account receivable due above 3-year Aging 100%
Accrual proportion of other account receivables recognized with the aging as the risk
character.
Aging
Within
6-month
6-month –
1-year
1 – 2-year 2 – 3-year
Above
3-year
Accrual proportion 5% 10% 30% 50% 100%
11. Inventory
(1) Categories of inventory
The inventory is goods or manufactured products held for sale, products in process,
and materials and matters utilized in the production or supply of labor. It mainly
consists of the raw material, turnover material, consumable low-value product,
product in process, self-made semi-finished product, and manufactured product
(storage goods).
(2) Pricing method for inventory delivery
In inventory delivery, the actual cost is recognized on the weighted average.
(3) Recognition principle on net recognizable value and accrual method for
preparation for inventory price fall-down
On the balance sheet day, the inventory is measured on the lower one between the cost
and the net recognizable value, and the provision for the price fall-down is accrued on
each inventory item; however, as for the inventory of large quantity and low price, the
provision is accrued on the inventory category. If the influence factor previously
deducting the inventory value disappears, the previous provision sum is taken as the
limit and transferred, and then reckoned into the current loss/gain.
Recognition principle on net recognizable value of inventory: ① net recognizable
value as the estimative sale price less the relevant tax expenses. ② as for the materials
held for production, if the net recognizable value of the manufactured product in use
of the materials, is higher than the cost, the net recognizable value is measured on cost;
as the fall-down of the material price shows that the net recognizable value of the
manufactured product is lower than the cost, recognizable value is recognized on the
estimative sale price less the estimative will-be actual cost, estimative sale expenses,
and relevant tax expenses.③ As for the materials held on sale, the net recognizable
value is the market sale price.
(4) Inventory system
The Company’s inventory system is the perpetual one.
(5) Dilution method for the consumable low-value product and packaging
material
As for the consumable low-value product and the turn-over material, they are diluted
in five-five method.21
12. Long-term stock investment
(1) Recognition of the initial investment cost
① initial investment cost of long-term stock investment obtained by corporate
consolidation: in the case of the consolidation of enterprises under the same control,
recognized as the initial cost is the book value of the owners’ equity obtained from the
consolidated party; in the case of the consolidation of enterprises not under the same
control, recognized as the initial cost is the recognized consolidation cost on the
purchase day.
② As for the long-term stock investment obtained by cash payment, the initial
investment cost is the actual purchase payment.
③ As for the long-term stock investment obtained by the equity securities offering,
the initial investment cost is the fair value of the equity securities.
④ As for the long-term stock investment invested in by the investors, the initial
investment cost is the value in the contract agreement.
⑤ As for the long-term stock investment obtained by the exchange of the
non-monetary assets and the debts restructuring, the initial investment cost is
recognized on the relevant rules in the Principles.
(2) Follow-up measurement and loss/gain recognition method
The follow-up measurement of the long-term stock is on equity or cost. As for the
long-term stock investment on equity, the investment return is recognized on the share
of the net loss/gain deserved or distributed; upon the calculation of the deserved share
of the profit and cash dividend announced to be distributed, the book value of the
long-term stock investment is decreased correspondingly.
As for the long-term stock investment on equity, the book value remains unchanged,
besides the investment added or withdrawn. Upon the calculation of the deserved
share of the profit or cash dividend announced to be distributed, the investment return
is recognized.
As for the long-term stock investment of common control and significant influence, it
is checked on equity; and others are checked on cost.
(3) Recognition principle on common control over and significant influence on
invested unit
① Recognition principle on common control over invested units: the common control
is agreed in the contract or agreement by the two or more joint parties that the
accounting and operation policy must be decided commonly by the two or several
investment parties.
② Recognition principle on the significant influence on invested unit: As above 20%
to 50% vote capital is held in the invested unit, the significant influence is recognized;
or as 20% below is held, the significant influence is recognized if the following
conditions are matched up to:
①there is representative in the invested unit’s board of directors or similar
authority organs;
②there is participation in the policy-making of the invested unit;
③there is management person dispatch into the invested unit;
④there is dependence on the invested company’s technology or technologic
materials;
⑤and other situations which can prove fully the significant influence on the
invested unit.
(4) Test method for impairment test and accrual method for impairment22
provision
On the balance sheet day, the check is taken on the long-term stock investment to
make sure whether there is the indication to the impairment; once there is, the
impairment test is taken to recognize the recoverable, and then the provision for the
impairment is accrued on the lower one between the book value and the recoverable;
once the impairment loss is accrued, it may not be transferred in the future accounting
periods.
Test method for impairment: the test may be taken on the recoverable of the long-term
stock investment with the indication to the impairment.
As for the net fair value sold in the long-term stock investment, if there is the
agreement price of the fair transaction, it is on the agreement price less the relevant
tax expense; or there is no fair transaction agreement but the active market for similar
assets, it is on the market price less relevant tax expense; or there is no reliable
evaluation of the net fair value sold, taken as its recoverable is the current value of the
estimative future cash flow of the long-term stock investment in the holding period
and final disposal.
13. Investment real estate
(1) Category of and measurement method for real estate
Category of the Company’s investment real estate: lease buildings.
The Company’s investment real estate is measured on cost.
(2) Principle of check on cost
Accrued on the year averaging is the depreciation of the lease buildings in the
Company’s investment property. The detailed check principle is same as that of the
capital assets.
14. Capital assets
(1) Recognition conditions of capital assets
The capital assets are tangible assets held for the goods production, labor supply, lease
or operation & management, and with above one-accounting-year service life;
meanwhile as up to the following conditions, they are recognized:
①The economic interest related to the capital assets probably flow into the Company;
②The cost of the capital assets can be measured reliably.
(2) Category of and accrual method for capital assets
The Company’s capital assets are mainly divided as: house buildings, ships &
machines & fishing equipment, furniture & office equipment, transportation
equipment; the depreciation is in year averaging method. The service life and the net
estimative remnant are recognized on the nature and utilization of the capital assets;
and at the year-end, the service life, net estimative remnant, and the depreciation
method, of the capital assets, are checked, and the corresponding adjustment is made
if there is inconsistency between the checked ones and the previous ones. The
depreciation of all of the Company’s capital assets is accrued, besides the ones
sufficiently accrued and in continuous use, and the land booked specifically.
Category of assets
Estimative service life
(year)
Net estimative
remnant rate (%)
Annual depreciation
rate (%)
House building 20—40 3—5 2-5
Ship 15—20 3—5 5-623
Category of assets
Estimative service life
(year)
Net estimative
remnant rate (%)
Annual depreciation
rate (%)
Machine & Fishing
equipment
8—20
3—5 5-12
Furniture & Office
equipment
5
3—5 19-19
Transportation
equipment
5
3—5 19-19
(3) Test method for impairment of capital assets, and accrual method for
provision of impairment
At balance sheet day, fixed assets have been examined by the Company whether there
exist evidence of impairment probably, while impairment evidence be found than
impairment test shall be performed and recognized its recoverable amount. Take the
lower one between the book value and recoverable amount for impairment provision
withdrawal, the withdrawal impairment losses shall not be switch back in subsequent
fiscal year.
Test method for impairment: the test may be taken on the recoverable of the capital
assets of the indication to the impairment.
The recoverable of the capital assets is recognized on the higher one between net of
the assets fair value less the disposal expense, and the current value of the estimative
future cash flow.
As for the net of, the fair value less the disposal expense, if there is the agreement
price of the fair transaction, it is recognized on the agreement price less the sum
directly attributable to the disposal expense; or there is no fair transaction agreement
but the active market or the transaction price of similar assets in the same business, it
is recognized on the market price less the disposal expense; or there is no reliable
evaluation of the net fair value, taken as their recoverable is the current value of the
estimative future cash flow of the long-term stock investment in the holding period
and final disposal.
(4) Recognition basis of and pricing method for financing lease capital assets
Recognition basis of financing lease capital assets: Substantially it is the lease of
transferring all risks and compensations related to the assets ownership. The
recognition basis is one or several of the following conditions: ① at the expiry of the
lease, the ownership of the lease assets is transferred to the lessee; ② The option right
to purchase the lease assets is owned by the lessee, and the agreed purchase price is
expected far lower than the fair value of the lease assets in the exertion of the option
right, and therefore on the lease starting day, it can be rationally recognized the
probability of the exertion; ③ Even though the ownership of the assets is not
transferred, the lease period accounts for the most part of the service life of the lease
assets; ④ The current value of the lowest lease payment on the lease starting day, is
almost equal to the fair value of the lease assets; ⑤ The nature of the lease assets is
rather special, as no great reformation and the only utilization by the lessee.
Pricing method for financing the lease capital assets: As for the initial pricing of
financing the lease capital assets, the book value is the lower one on the lease starting
day between the fair value of the lease assets and the current value of the lowest lease
payment; and as for the follow-up measurement of financing the lease capital assets,24
the depreciation and the impairment provision is accrued on the depreciation policies
consistent with the self-owned capital assets.
15. Projects under construction
(1) Category of projects under construction
The Company’s projects under construction are divided as the self-support and
contract-out construction.
(2) Principle and time point of transfer of projects under construction to capital
assets
Principle and time point of transfer of projects under construction to capital assets: as
the project completion reaches the expectant availability, the capital assets is
transferred. Judgment principle on expectant availability: if following cases is
matched up to:
① The substance construction (installation included) of the capital assets has
completed all or basically;
② As the projects have been in test production or operation, and the results show that
the assets can operate properly and produce the qualified products stably, or the test
operation result shows the assets can operate or open properly.
③ The expenditure of the capital assets on the construction, is a little or little.
④ The capital assets of the project constructed have been up to the requirements of
the design or contract, or basically up to.
(3) Test method and provision accrual method, for impairment of projects under
construction
On the balance sheet day, the check is taken on the projects under construction for the
indication to the impairment, and if there is the indication, the impairment test is taken
to recognize the recoverable, and the impairment provision is accrued on the lower
one between the book value and the recoverable; once the impairment loss is accrued,
it cannot be transferred back in the future accounting periods.
Impairment test method for projects under construction: as for projects under
construction, their recoverable may be tested.
The recoverable is recognized on the higher one between the net of the assets fair
value less the disposal expenses, and the current value of the assets estimative future
cash flow.
16. Borrowing expenses
(1) Recognition principle on capitalization of borrowing expenses
As for the Company’s actual borrowing expenses directly attributable to the assets
construction or production, it is capitalized and reckoned into the relevant assets cost;
as for other borrowing expenses, it is recognized on the actual sum and reckoned into
the current loss/gain. The assets up to the capitalization are assets as the capital assets,
investment real estate, and inventory reaching the expectant availability or sale ability.
(2) Recognition method for capitalization
Capitalization period: the period from the time point of starting to that of ending, of
the capitalization of the borrowing expenses. The temporary capitalization cease
period is not included.
Temporary capitalization cease period: the capitalization of the borrowing expenses
may be stopped temporarily if there is incidence of the irregular interruption and
above 3 months.
Calculation of capitalization sum: ① As for the borrowing of the specific borrowing,
the capitalization sum is recognized on the current actual interest expenses less the25
interest income of the borrowing capital not utilized but deposited in the bank or the
return of the temporary investment; ② As for the appropriation of the general
borrowing, the capitalization sum is recognized on the weighted average of, the
accumulative assets expenditure above the specific borrowing, and times the
capitalization rate of the appropriation; ③ As for the discount or premium of the
borrowing, the discount or premium to be diluted in every accounting period is
recognized in the actual rate method.
The actual rate method is the method for the measurement of the diluted discount or
premium or interest expenses on the actual interest rate; and the actual interest rate is
the interest rate used in the discount of the future cash flow in the expectant duration
period as the current book value of the borrowing.
17. Intangible assets
(1) Pricing method for intangible assets
The Company’s intangible assets are measured initially on cost. The intangible assets
purchased in are taken as the actual cost on the actual payment and relevant
expenditure. As for the intangible assets invested in by the investors, the actual cost is
recognized on the value stipulated in the contract or agreement; however, if what is
stipulated in the contract or agreement is not fair value, the actual cost is recognized
on fair value. As for the self-developed intangible assets, their cost is the actual total
expenditure before reaching the expectant purpose.
The follow-up measurements of the Company’s intangible assets respectively are:
①the linear dilution is taken on the intangible assets of finite service life, and at the
yea-end, the check is taken on the service life and dilution of the intangible assets, and
the corresponding adjustment is made if there is inconsistency with the previous
estimative ones. ② As for the intangible assets of uncertain service life, it is not
diluted, however, the service life is checked at year-end; If there is solid evidence to
its finite service life, its service life is estimated and diluted in linear method.
(2) Estimation of service life of intangible assets of finite service life
As the service life of the intangible assets of finite service life is estimated, the
following factors are considered usually: ① the ordinary service life period of
products produced by the assets, and the available information of the service life of
the similar assets; ② the present situation of the technology, craftsmanship, etc. ③ the
market demand for the products produced by the assets and the labor supply; ④ the
expectable actions taken by the present or potential competitor; ⑤ expectant
maintenance expenditure for the assets’ ability to bring forth the economic interest; ⑥
relevant law rules or similar restrictions on control period of the assets; ⑦ relevancy
with the service life of other assets held by the Company.
(3) Recognition principle of uncertain service life
Recognized as the intangible assets of uncertain service life is refers to those
intangible assets of un-expectable period of economic benefits brought into the
Company, or of the uncertain service period.
Recognition principle of uncertain service life: ① from contract right or other legal
rights, the uncertain service period is stipulated in the contract or law; ② After the
integration of the situations and relevant expertise argumentation in the same trade,
the period of the economic interest brought into the Company by the intangible assets
still cannot be recognized.26
At every year-end, the check is taken on the intangible assets of uncertain service life,
mainly in bottom-up way, namely the basic check is taken by the department relevant
to the assets utilization, to assess whether there is change in the recognition principle
of the uncertain service life.
(4) Test method for and provision accrual method for impairment of intangible
assets
On balance sheet day, the check is made on the intangible assets for the indication to
the impairment; as there is the indication, the recoverable is recognized, and the
impairment provision is accrued on the lower one between the book value and the
recoverable; once the impairment loss is accrued, it may not be transferred back in
future accounting periods.
Test method for impairment of intangible assets: the test may be taken on the
recoverable of the intangible assets of the indication to the impairment.
The recoverable amount on intangible assets shall recognized as the higher one
between the fair value of assets less net amount which have been disposal and current
value of future predicted cash flow.
18. Long-term unamortized expense
The Company’s long-term unamortized expenses are expenses paid out and with one
year above (1-year included) benefit period, mainly consisting of the house decoration
expenses and the like. The long-term unamortized expenses are diluted by periods
according to the benefit period. As the long-term unamortized expenses cannot enable
the accounting period’s beneficiary, all dilution values of the project undiluted yet, are
transferred into the current loss/gain.
19. Projected liabilities
(1) Recognition principle on projected liabilities
The liabilities are the Company’s actual liabilities, and its fulfillment probably causes
the outflow of the economic interest; as the sum of the liabilities can be measured
reliably, the liabilities are recognized as the projected liabilities.
(2) Measurement method for projected liabilities
The initial measurement is taken according to the best estimator of the expenditure
necessary for the fulfillment of the relevant current liabilities; if the necessary
expenditure is of a continual scope and of a same chance of all results within the
scope, the intermediate value is recognized as the best estimator; if several items are
involved in, the best estimator is recognized according to all likely results and
relevant possibilities.
On the balance sheet day, the check is taken on the book value of the estimative
liabilities, and the adjustment is made on the book value according to the current best
estimator if there is solid evidence to the inability of the book value for the true
reflection to the current best estimator.
20. Stock payment and stock instrument
(1) The stock payment is the transaction, of the grant of the stock instrument liabilities
for obtaining the service supply from the staff or other parties, or of assumption of
liabilities recognized on the basis of the stock instrument, including two ways as
equity and cash settlement.
(2) As for the payment on equity settlement and for the service supply from the staff,
it is measured on the fair value of the stock instrument granted to the staff; as for the27
payment for the service supply from other parties, it is measured on the fair value of
the service from other parties on the obtaining day, and on the fair value of the stock
instrument on the obtaining day if the fair value of the service cannot be measured
reliably.
(3) The fair value of the stock instrument is recognized in the following methods:
As there is the active market, it is recognized on the quotation in the active market;
As there is no active market, it is recognized by the rational evaluation technology
including the reference to the price used in the latest market transaction between the
parties familiar to situations and voluntary to the transaction, and the reference to the
current value of other financial instruments substantially same, discount of cash flow
and the option pricing model.
(4) As for the cash payment, it is measured on the fair value of the liabilities
recognized on the measurement based on the shares or other stock instrument.
(5) The best estimator of the practicability right is estimated and recognized on the
latest follow-up information as the change in the staff of practicability right.
21. Income
(1) Sales goods
The income of the sales goods is recognized on the sum of the contract or agreement
price received or deserved by the purchaser, as the Company’s sales goods are up to
all of the following conditions: ① All major risks and compensations on the goods
ownership have been transferred to the purchase party; ② There is neither the
maintaining of the continuous management right related to the ownership nor the
effective control over the goods sold out; ③ The income can be measured reliably; ④
Relevant economic interests probably flow into the corporation; ⑤ The relevant
actual or will-be-actual cost can be measured reliably.
The take-in of the contract or agreement price is deferred; as for the financing one, the
income of the sales good is recognized on the fair value of the contract or agreement
price.
(2) Labor supply
As the result of the transaction of the labor supply can be measured reliably on the
balance sheet day, the income of labor supply is recognized on the percentage of the
work completion.
As the result of the transaction of the labor supply cannot be measured reliably on the
balance sheet day, the income of the labor supply is dealt with respectively in the
following cases: ① As the actual cost of the labor service is expected to be
compensated for, the income of labor supply is recognized on the actual cost of the
labor service, and the cost of the labor service is settled and transferred on the same
sum. ② As the actual cost of the labor service is not expected to be compensated for,
the actual labor cost is reckoned into the current loss/gain, without the recognition of
the income of the labor supply.
(3)Relinquishment of assets access
The relinquishment of the assets access is recognized as the inflow and income of the
economic interest related to the relinquishment can be measured reliably.
22. Government subsidy
(1) Category of government subsidy
The categories of the government subsidy mainly consist of the two ones respectively28
related to the assets and the income.
(2) Accounting dealing with government subsidy
The government subsidy related to the assets is recognized as the deferred income and
shared averagely in the service life of the relevant assets, and reckoned into the
current loss/gain. The government subsidy measured on token sum is directly
reckoned into the current los/gain.
The government subsidy related to the income, is dealt with respectively in the
following cases: ① As for the one for the compensation for the future corporate
relevant expenses or loss, it is recognized as the deferred income, and reckoned into
the current loss/gain. ② As for the one for the compensation for the actual relevant
corporate expenses or loss, it is directly reckoned into the current loss/gain.
23. Assets and liabilities of deferred income tax
The Company’s assets and liabilities of deferred income tax are recognized as
follows:
(1) They are recognized on the difference between the book value of the assets or
liabilities and the taxation basis (as for the items not as the assets or liabilities and
with the taxation basis able to recognized on tax rules, the taxation basis is recognized
as the difference), the assets or liabilities of deferred income tax is recognized on the
applicable rate in the estimative period of recovering the assets or paying off the
liabilities.
(2) The assets of deferred income tax are recognized with the limit of taxable income
probably obtained and used for the deduction of deductible temporary difference. On
the balance sheet day, the unrecognized assets of deferred income tax in the previous
accounting period are recognized if there is solid evidence for probably obtaining in
the future accounting period sufficient taxable income for deducting the deducible
temporary difference. The book value of the assets of the deferred income tax is
deducted if there is solid evidence for probably not obtaining in the future accounting
period sufficient taxable income for deducting the book value of the assets of deferred
income tax.
(3) As for the taxable temporary difference related to the investment in the subsidiary
or affiliated corporation, it is recognized as the deferred liabilities, unless the
transfer-back time of the temporary difference can be controlled and the difference
probably cannot be transferred in the expectable future. As for the taxable temporary
difference related to the investment in the subsidiary or affiliated corporation, it is
recognized as the assets of deferred income tax as the temporary difference is
probably transferred back in the expectable future and the taxable income for
deducting the deducible temporary difference is probably obtained.
24. Lease
If all risks and compensations related to the ownership of the lease assets are
transformed into the lessee substantially in the lease terms, the lease is financing lease;
and others are operation lease.
The Company as the lessee is in the business of office house lease on monthly rental
reckoned into the current loss/gain.
25. Holding of assets on sale
(1) Recognition principle on holding of assets on sale
The following conditions are all matched up to: the resolution on the disposal of the29
assets has been made; the un-relievable transfer agreement is singed between the
Company and the transfer party; and the transfer is to be accomplished within a year.
(2) Accounting dealing with the holding of assets on sale
As for the capital assets held, the net estimative remnant of the capital assets may be
adjusted for the reflection of the remnant to the sum of the fair value less the disposal
expenses, without above the limit of the previous book value of the capital assets as
up to the conditions of holding assets on sale; And the difference of the previous book
value above the net estimative remnant adjusted is reckoned into the current loss/gain.
As for the holding of other non-current assets on saleable, they are dealt with on the
above principles; they consist of the single assets and the disposal group; the disposal
group is a group of assets which is sold as a whole or disposed together.
26. Explanation on changes in accounting policies and estimation
(1) Change in accounting policies in Financial Report
Nil.
(2) Change in accounting estimation in Financial Report
Nil.
27. Correction of previous accounting errors
Nil.
III. Taxes
1. Major tax and tax rate:
Taxes Tax basis Tax rate
VAT Taxable sales income 17%,13%
Business tax Leasing income 3%,5%
City maintenance tax Payable turn-over tax 7%
Educational surtax Payable turn-over tax 4%
Enterprise income tax Payable income tax 25%
Pursuit to the Provisional Regulations of the People’s Republic of China on Enterprise
Income Tax, the Company and its China-founded subsidiaries withdrawal the
enterprise income tax based on the 25% of taxable amount.
2. Tax preference and approval document
(1) Tax preference of added value tax
Pursuant to the Treasury Tax (1997) No. 64 Notice on Taxation on Import of Fishery
Equipment and Transport-back of Self-fished Fishery Products of Overseas Fishery
Industry Corporation, the self-fished fishery products transported home, is regarded as
the non-import domestic products, without taxation of tariff or added-value taxation in
the import link. The corresponding domestic sales are attributable to the primary
agricultural products sales, and free from added-value tax according to the specific
rules of added value tax.
(2) Operation tax preference
Pursuant to Treasury Tax [2010] No.8 , the tax-free is available to the supply of the30
international transportation of labor service to the domestic unit or individual. And the
income of the international transportation of labor service from the businesses of the
lease of cooling transport ships and of management.
(3) Income tax preference:
Pursuant to rules of Treasury Tax [1994] No. 001 , Treasury Tax [1997] No. 114 ,
Treasury Agriculture [2010] No. 104 , President Order of People’s Republic of
China [2007] No. 63 < Corporate Income Tax Law of People’s Republic of China>,
the Company’s income from the overseas fishing business is corporate income tax
free.
The Company’s income besides one from the overseas fishing business is taxed on
25% for the corporate income tax.
The subsidiary – Shandong Zhonglu Overseas (Yantan) Food Co., Ltd—is a foreign
investment corporation, is implemented the tax preference policies of “Two-free,
Three-reduction” on according to the original , but has not enjoyed the preference yet because of no profit,
according to the rules of tax preference policies in the transitory period of new
, with the preference period starting from 2008.
IV. Corporate consolidation and consolidated financial statements
The subsidiary of the actual control over and the entity of the special purpose for, are
included into the scope of consolidated financial statements.
The Company’s consolidated financial statements are prepared on the , and all
substantive inside transactions and dealings within the consolidation scope are
balanced out in consolidation. As for the part of the shareholders’ equity of the
subsidiaries not attributable to the parent company, it is listed as minority
shareholders’ equity in the shareholders’ equity in the consolidated financial
statement.
As for the inconsistency in the accounting policies or periods between the subsidiary
and the Company, the necessary adjustment is made the subsidiary’s financial
statement according to the Company’s accounting policies or periods in the
preparation of the consolidated financial statement.
As for the subsidiary obtained from the consolidation of enterprises under the same
control, the adjustment is made on the individual financial statement, based on the fair
value of the net recognizable assets on the purchase day in the preparation of the
consolidated financial statement; as for the subsidiary obtained from the consolidation
of enterprises not under the same control, the consolidation is regarded as actual at the
year-beginning of the consolidation period, and the assets, liabilities, operation result,
and cash flow are all included in the consolidated financial statement from the
year-beginning of the consolidation period.
1. Particular about subsidiary
(1) Subsidiary obtained from set-up or investment
Full name of Type of Registered Nature of Registered Operation Actual Balance of Shareho Vote Min Balanc Balance of31
2. Subject of special purpose for or operation entity of control over by trust
operation or lease
Name Major business dealing
with Company
Balance of major assets
recognized in
consolidated statement
at Period-end
Balance of major
liabilities recognized in
consolidated statement
at Period-end
YAW ADDO FISHERIES
COMPANY LIMITED
Lease operation
8,726,659.22 14,797,390.66
3. Conversion rate of main statement items of overseas operation entity
(1) Conversion method for statement of overseas subsidiary with foreign currency as
bookkeeping standard currency
a. The balance item in the balance sheet is converted on the current rate on the
balance sheet day; all equity items besides the un-distributed profit item, all are
converted on the actual rate.
b. The income and expense item in the profit statement are converted on the current
rate on the actual transaction day.
c. The conversion difference in the foreign currency financial start is listed
specifically as “foreign currency statement conversion difference” in the owners’
equity in the consolidated balance sheet in the preparation of the financial statement.
(2) Rate of conversion of foreign currency statement in Period
a. The current exchange rate of US$ : RMB = 1: 6.7909 on the balance sheet day is
used for the balance sheet item in the balance sheet.
b. The current rate on the actual transaction day is used for the income and expense
item in the profit statement.
Shandong
Zhonglu
Overseas
Fi h S
Co., Ltd.
Qingdao,
Sh d
Cooling
transportatio 22,505,600
International
sea
transportation,
t tti
100% 100%
Yes32
V. Notes to important item in consolidated financial statement
1. Monetary capital
Balance at Period-end Balance at Year-beginning
Item Foreign currency
sum
Conversion
rate
RMB sum
Foreign currency
sum
Conversion
rate
RMB sum
Cash: 610,110.89 387,303.70
Among:
RMB
501,874.33 1.00 501,874.33 306,606.46 1.00 306,606.46
US$ 367.20 6.7909 2,493.62 8,805.12 6.8282 60,123.33
JY
Euro 2,100.00 8.2710 17,369.10 2,100.00 9.7971 20,573.91
Cedi 18,370.41 4.8107 88,373.84
Bank
deposit:
30,979,938.37 31,378,521.65
Among:
RMB
22,835,380.63 1.00 22,835,380.63 25,378,074.63 1.00 25,378,074.63
US$ 833,367.79 6.7909 5,659,317.35 699,236.60 6.8282 4,774,527.35
JY 1,793,458.00 0.0769 137,829.54 16,611,377.66 0.0738 1,225,919.67
Euro 248,565.68 8.2710 2,055,886.74
Credit 60,599.58 4.8107 291,524.11
Other
monetary
capital
8,309,375.85 6,735,448.54
Among:
RMB
8,309,375.85 1.00 8,309,375.85 6,691,905.29 1.00 6,691,905.29
Euro
JY 590,017.00 0.0738 43,543.25
Total 39,899,425.11 38,501,273.89
Note: 1. The balance of the non-local deposit in the offshore central bank in the Traffic Bank is
US$ 492,794.41, namely RMB 3,346,517.56.
2. Other currency balance at Period-end is RMB 8,309,375.85, among: CMBC guarantee sum
RMB -3,200,000, credit guarantee sum RMB 5,109,375.85. Above 3-month guarantee sum RMB
3,200,000.00.
2. Account receivable
(1) Category of account receivable as follows:
Balance at Period-Category end Balance at Year-beginning
Book balance Provision for bad debts Book balance Provision for bad debts33
Sum
Proportion
(%)
Sum
Proportion
(%)
Sum
Proportion
(%)
Sum
Proportion
(%)
Single
substantive
account
receivable
27,855,131
.24
83.58
4,813.670.
57
62.62
11,589,566
.55
64.38
4,000,392.
34
58.80
Account
receivable not
substantive
singly but in a
rather risky
portfolio on
credit risk
character
2,404,859.
24
7.22
2,404,859.
24
31.29
2,404,859.
24
13.36
2,404,859.
24
35.35
Other account
receivable not
substantive
singly
3,067,801.
16
9.20
467,901.7
3
6.09
4,005,135.
53
22.25
398,585.1
4
5.85
Total
33,327,791
.64
100.00
7,686,431.
54
100.00
17,999,561
.32
100.00
6,803,836.
72
100.00
Note: 1. The Company’s “single substantive account receivable” is the account receivable of the balance at the
Period-end of RMB 1 million (including 1 million) above; at the Period-end, besides the one of impairment, the
accrual of the provision of the bad debts is recognized on the basis of the actual loss rate of the account receivable
portfolio of the same aging, and with reference to the current situations.
2. The account receivable at the Period-end increased 129.03% compared with that at the Period-beginning, mainly
due to the increase in the sales account receivable of the export business of Yantai Food Company – the
Company’s substantive.
(2) Accrual of provision for bad debts of account receivable which is singly substantive or
not substantive but is tested specifically for impairment.
Content of account receivable Book balance
Sum of bad
debts
Accrual
proportion
Reason
Japan Shimizu 9,285,649.16 464,282.45 5%
No impairment after test; accrual
of provision for bad debts based
on the actual loss rate of account
receivable portfolio of same aging
with combination of current
situations.
Yantai Hiaye Food Co., Ltd. 7,042,750.15 352,137.51 5%
No impairment after test; accrual
of provision for bad debts based
on the actual loss rate of account
receivable portfolio of same aging
with combination of current
situations.
Sea Sky South Korea
5,315,069.2
0
265,753.46 5%
No impairment after test; accrual
of provision for bad debts based
on the actual loss rate of account
receivable portfolio of same aging34
Content of account receivable Book balance
Sum of bad
debts
Accrual
proportion
Reason
with combination of current
situations.
Panda Company 3,600,962.12 3,600,962.12 100%
3-year-above aging and slight
chance of recovery
Freiremar S.A. Spain 1,392,819.86 69,640.99 5%
No impairment after test; accrual
of provision for bad debts based
on the actual loss rate of account
receivable portfolio of same aging
with combination of current
situations.
Phoenix Company Germany 1,217,880.75 60,894.04 5%
Total 27,855,131.24 4,813,670.57 —— ——
(3) Explanation on account receivable not substantive singly but in a rather risky
portfolio of same credit risk character
The 100% provision for bad debts is accrued on the 3-year-above account receivable,
according to the Company’s analysis on the recovery of the account receivable that
there is little chance of recovery for the 3-year-above account receivable, and the
account receivable up to the above conditions besides the single substantive ones, are
recognized as the “account receivable not substantive singly but in a rather risky
portfolio of the same credit risk character”, the details of the accrual are referred to
“the category of the account receivable”.
(4) Account receivable on aging as follows:
Balance at Period-end Balance at Year-beginning
Aging Book balance Provision for bad debts Book balance Provision for bad debts
Sum Proportion
(%) Sum Proportion
(%) Sum Proportion
(%) Sum Proportion
(%)
Within
6-month
24,879,668.40 74.65 1,243,983.42 5.00 10,600,526.86 58.89 530,026.34 5.00
6-month
– 1-year
1,480,319.01 148,031.90 10.00 749,874.55 4.17 10.00
1 –
2-year
961,982.87 2.89 288,594.86 30.00 643,338.55 3.57 193,001.57 30.00
2 –
3-year
50.00 50.00
3-year
above
6,005,821.36 18.02 6,005,821.36 100.00 6,005,821.36 33.37 6,005,821.36 100.00
Total 33,327,791.64 100.00 7,686,431.54 17,999,561.32 100.00 6,803,836.72
(5)No owning of shareholding unit of 5% (including 5%) above vote stock in the
Company.
(6) Top-five organization of account receivable35
Name of unit
Relations with
Company
Sum Aging
Proportion in
total (%)
Japan Shimizu
Non-related party
9,285,649.16
Within 6-
month
27.86
Yantai Hiaye Food Co., Ltd.
Non-related party
7,042,750.15
Within
6-month
21.13
Sea Sky South Korea
Non-related party
5,315,069.20
Within
6-month
15.95
Panda Company
Non-related party
3,600,962.12
3-year
above
10.80
Freiremar S.A. Spain
Non-related party
1,392,819.86
Within
6-month
4.18
Total 26,637,250.49 79.92
3. Payment in advance
(1) Payment in advance on aging as follows
Balance at Period-end Balance at Year-beginning
Aging
Sum
Proportion
(%)
Sum Proportion (%)
Within 1-year 12,334,305.13 100.00 9,008,430.89 100.00
Total 12,334,305.13 100.00 9,008,430.89 100.00
(2) Top-five organization of payment in advance
Name of organization
Relations with
Company
Sum
Time of
prepayment
Reason for
un-settlement
Penglai Jingyuan Food
Non-related
party
4,000,000.00
Within
1-year
Fishing prepayment
Dalian Dayang Overseas Fishery Co.,
Ltdp
Non-related
party
3,625,159.00
Within
1-year
Fishing prepayment
Qingdao Furui Fishery
Non-related
party
2,000,000.00
Within
1-year
Fishing prepayment
Jiangsu Hongzehu Food Co., Ltd.
Non-related
party
1,073,316.40
Within
1-year
Fishing prepayment
Micronesia Fishing Access Expense
Non-related
party
817,200.00
Within
1-year
Fishing access
expense
Total 11,515,675.40
Note: 1. There is no owning of the shareholding unit of 5% (included) vote stock in the account balance.
2. The prepayment at the Period-end increased 36.92% compared with that at the Period-beginning, mainly due to
the increase in prepayment for the purchase of the tuna materials in Yantai Food Company – the Company’s
subsidiary.
4. Other account receivables
(1) Other account receivables disclosed on category
Category Balance at Period-end Balance at Year-beginning
Book balance Provision for bad debts Book balance Provision for bad debts36
Sum
Proportion
(%)
Sum
Proportion
(%)
Sum
Proportion
(%)
Sum
Proportion
(%)
Other
single
substantive
account
receivables
4,260,000.00 39.72 4,260,000.00 49.01 6,338,717.48 46.57 4,260,000.00 48.62
Other
account
receivables
not
substantive
singly but
in a rather
risky
portfolio
of same
credit risk
character
4,195,319.69 39.11 4,195,319.69 48.26 4,283,261.03 31.47 4,283,261.03 48.89
Other
account
receivable
not
substantive
2,270,376.39 21.17 237,118.63 2.73 2,988,666.88 21.96 218,153.13 2.49
Total 10,725,696.08 100.00 8,692,438.32 100.00 13,610,645.39 100.00 8,761,414.16 100.00
Note: 1. The Company’s “other single substantive account receivables” are other account receivables of 1 million
(1 million included); at the Period-end, the provision for the bad debts of the other account receivables besides
ones of the indication to the impairment, is accrued on the actual loss rate of the portfolio of the same aging, with
the combination to the current situations.
2. Other account receivables decreased 58.07% compared with that at the Period-beginning, mainly due to the
recovery of last year export tax rebate by Yantai Food Company.
3. Recognition principle on “other account receivables not substantive singly but in a rather risky portfolio of the
same credit risk character”: 3-year-above other account receivable of little chance of recovery. The 100% provision
for bad debts of 3-year above other account receivables is accrued; other account receivables up to the above
conditions are recognized as the “other account receivables not substantive singly but in a rather risky portfolio of
the same credit risk character”.
(2) Accrual of provision for other account receivables substantive singly or not
substantive singly but tested specifically for impairment
Content of other
account receivables Book balance Sum of bad
debts
Accrual
proportion Reason
China Industry
Economy Investment
Co., Ltd.
4,260,000.00 4,260,000.00 100%
3-year-above aging and little chance
of recovery.
Total 4,260,000.00 4,260,000.00 ——
(3) Explanation on other account receivables not substantive singly but in a
rather risky portfolio of same credit risk character
The 100% provision for bad debts is accrued on the 3-year-above other account
receivables, according to the Company’s analysis on the recovery of other account
receivable that there is little chance of recovery for the 3-year-above other account
receivable, and the account receivable up to the above conditions besides the single
substantive ones, are recognized as the “other account receivable not substantive
singly but in a rather risky portfolio of the same credit risk character”, the details of
the accrual are referred to “the category of other account receivables”.
(4) Aging analysis on other account receivables
Balance at Aging Period-end Balance at Year-beginning
Book value Provision for bad debts Book balance Provision for bad debts37
Sum
Accrual
proportion
(%)
Sum
Accrual
proportion
(%)
Sum
Accrual
proportion
(%)
Sum
Accrual
proportion
(%)
Within
6-month
1,703,461.59 15.88 72,894.19 5.00 1,376,184.70 10.11 88,780.46 5.00
6-month
– 1-year
383,602.22 3.58 38,360.22 10.00 3,577,608.66 26.29 79,634.29 10.00
1 –
2-year
23,769.08 0.22 7130.72 30.00 11,418.05 0.08 915.00 30.00
2 –
3-year
84,620.00 0.79 43,810.00 50.00 102,172.95 0.75 48,823.38 50.00
3-year
above
8,530,243.19 79.53 8,530,243.19 100.00 8,543,261.03 62.77 8,543,261.03 100.00
Total 10,725,696.08 100.00 8,692,438.32 13,610,645.39 100.00 8,761,414.16
(5) No owning of shareholding organization of 5% (included) above vote stock in
Company.
(6) Top-five organization of other account receivables
Name of organization
Relations with
Company
Sum Year period
Proportion in total of other
account receivables (%)
Zhongchanjing
Investment Co., Ltd.
Non-related party 4,260,000.00 3-year-above 39.72
Japan Daihatsu Non-related party 288,896.39 3-year-above 2.69
Divng-seagull Non-related party 207,072.50 3-year-above 1.93
Wende Ship-repair
Company
Non-related party 200,000.00 3-year-above 1.86
Qingdao
Construct-Erection
Company
Non-related party 195,044.00 3-year-above 1.82
Total 5,151,012.89 48.02
5. Inventory
(1) Category of inventory as follows
Amount at Period-end Amount at Year-beginning
Item of
inventory Book balance
Provision for
price
fall-down
Book value Book balance
Provision for
price
fall-down
Book value
Raw
materials
61,076,337.64 650,206.41 60,426,131.23 42,947,165.16 650,206.41 42,296,958.75
Low-value
consumable
products
1,253,794.81 1,253,794.81 1,220,063.13 1,220,063.1338
Amount at Period-end Amount at Year-beginning
Item of
inventory Book balance
Provision for
price
fall-down
Book value Book balance
Provision for
price
fall-down
Book value
Inventory 75,313,758.97 75,313,758.97 58,463,042.82 58,463,042.82
Total 137,643,891.42 650,206.41 136,993,685.01 102,630,271.11 650,206.41 101,980,064.70
Note: The net amount of inventory at period-end increase 34.33% over that of period-begin, mainly due to the
increase of purchase on tuna and red drum raw materials by Yantai Food Company in period—subsidiary of the
Company.
(2) Change in provision for depreciation of each inventory as follows:
Decrease in Period
Item of inventory
Balance at
Year-beginning
Accrual in
Period Switching-back Transferring-put
Balance at
Period-end
Raw materials 650,206.41 650,206.41
Products in
process
Storage goods
Total 650,206.41 650,206.41
6. Long-term stock investment
(1) Long-term stock investment
Invested
organization
Check
method
Initial
investment
cost
Balance at
Year-beginning
Increase/
decrease
change
Balance at
Period-end
Shareholding
proportion in
invested
organization
(%)
Voting
proportion
in invested
organization
(%)
Explanation
on
inconsistency
in proportion
between the
shareholding
and voting
Provision for
depreciation
Accrual of
provision
for
impairment
in Period
Cash
dividend
in
Period
South
Securities
Co., Ltd.
Cost
method
33,000,000.00 33,000,000.00 33,000,000.00 0.87 0.87 33,000,000.00
Total —— 33,000,000.00 33,000,000.00 33,000,000.00 —— —— —— 33,000,000.00
(2) Explanation on long-term stock investment
Concerning South Securities Co., Ltd. had been canceled the license for securities
business and charged to close down as the administrative punishment by the CSRC on
29 April 2005, it was announced to be bankrupt by Shenzhen Intermediate Court, and
the proportion for the impairment of the long-term investment has been accrued on
the book value in full sum on the stock in the South Securities Company.
7. Investment real estate
(1) Investment real estate on cost
Item
Balance at
Year-beginning
Increase in
Period
Decrease in
Period
Balance at
Period-end
I. Total of original price 47,120,794.80 47,120,794.80
House building 47,120,794.80 47,120,794.8039
Item
Balance at
Year-beginning
Increase in
Period
Decrease in
Period
Balance at
Period-end
II. Total of accumulative depreciation and
dilution
5,365,231.92 609,332.76 5,974,564.68
House building 5,365,231.92 609,332.76 5,974,564.68
III. Total of accumulative sum of provision
for impairment of investment real estate
886,512.06 886,512.06
House building 886,512.06 886,512.06
IV. Total of book value of investment real
estate
40,869,050.82 40,259,718.06
House building 40,869,050.82 40,259,718.06
Note: 1. The plant locating on No. 3 Heze Road, Qingdao City, Shandong Province, has been leased to Qingdao
Sea Transport Professional School, with the lease period from October 2008 to September 2010.
2. The office buildings locating in No. 43 Heping Road, Jinan City, Shandong Province, is leased out (original
value RMB 44,630,697.79, accumulative depreciation RMB 4,605,753.74, net RMB 40,024,944.05, lease acreage
6088.07 ㎡).
8. Fixed assets
(1) Specifications of and increase/decrease changes in fixed assets and
accumulative depreciation as follows:
Item
Balance at
Year-beginning
Increase in Period Decrease in
Period
Balance at
Period-end
I. Total of original price 414,209,875.41 1,927,009.96 160,372.39 415,976,512.98
House and building 63,638,771.10 63,638,771.10
Ship 264,315.86 316,201,893.18
Machine and fishing
equipment
23,323,584.07 184,125.55 4,500.00 23,503,209.62
Transportation vehicle 3,435,159.81 153,267.46 73,316.51 3,515,110.76
Furniture and office
appliances
7,874,783.11 1,325,301.09 82,555.88 9,117,528.32
II. Total of accumulative
depreciation
139,494,514.41 11,314,281.71 159,394.82 150,649,401.30
House and building 8,031,801.50 786,636.18 8,818,437.68
Ship 118,006,465.70 8,754,021.00 126,760,486.70
Machine and fishing
equipment
6,474,757.51 1,178,101.36 906.30 7,651,952.57
Transportation equipment 1,727,449.30 174,123.08 75,800.00 1,825,772.38
Furniture and office
appliances
5,254,040.40 421,400.09 82,688.52 5,592,751.97
III. Total of accumulative
provision for impairment
7,571,580.00 7,571,580.0040
Item
Balance at
Year-beginning
Increase in Period Decrease in
Period
Balance at
Period-end
of capital assets
House and building
Ship 7,571,580.00 7,571,580.00
Machine and fishing
equipment
Transportation equipment
Furniture and office
appliances
IV. Total of book value of
capital assets
267,143,781.00 257,755,531.68
House and building 55,606,969.60 54,820,333.42
Ship 190,359,531.62 181,869,826.48
Machine and fishing
equipment
16,848,826.56 15,851,257.05
Transportation equipment 1,707,710.51 1,689,338.38
Furniture and office
appliances
2,620,742.71 3,524,776.35
Note: 1. The fixed assets increase RMB 1,927,009.96, among that Yantai Food Company – the subsidiary – the
increase of RMB 1,187,150 for iron frames, RMB 184,125.55 for stainless washer machine, metal investigator,
and fish flaking machine, RMB 53,442 for newly purchased bread car; HIC Company – the subsidiary, new
increase of RMB 314,772.90 in special investigation expense for Xinqiansheng Tanker before-sail-out; Haiyun
Company– the subsidiary – increase of RMB 99,825.46 for thenewly purchased bread car.
2. The fixed assets and accumulative depreciation decreased respectively RMB 160,372.39 and RMB159, 394.82,
among that: Haiyun Company – the subsidiary – disposal of a truck of original value of RMB 75,800.00 and
accumulative depreciation of RMB75,800.00; Haiyan Branch’s disposal of office computer of the original value of
RMB 83,131.40 and accumulative depreciation of RMB 82,688.52 and net of RMB 442.88. The above disposed
assets are ill-operated ones, without impact on the Company’s normal operation.
3. Mortgage of fixed assets
As ending at 30 June 2010, the comprehensive grant of credit of RMB 40 million is obtained and the short-term
borrowing of RMB 16 million has been paid back, with the fixed assets as the mortgage, among that the original
book value of RMB 46,976,452.50 of ship “Tailun 1”, the original book value of RMB 13,579,445.64 of ship
“Tailun2”, the original book value of RMB 11,335,381.12 of ship “Taining”, the original book value of RMB
32,587,971.41 of ship “Taixing”, the original book value of RMB 24,671,280.85 of ship “Taixing”. The mortgage
of ships “Taifu 101”, “Taihong 1”, and “Taihong 2” have been cancelled. The cancellation of the mortgage of
“Taining” Tanker, “Taixing” Tanker is in process. The comprehensive grant of credit has been obtained again with
the mortgage of the capital assets as of the original book value of RMB 46,976,452.50 of “Taifu 101” Tanker, of
the original book value of RMB 65,633,153.65 of “Taifu 102” Tanker, and of the original book value of RMB
13,579,445.64 of “Taihong 1” Tanker.
The comprehensive grant of credit of RMB 23 million has been obtained and the short-term borrowing of RMB 8
million, with the mortgage of production houses of the original book value of RMB 7,186,500.00, and the land use
right of the original book value of RMB 9,929,529.00.
4. Pursuant to the signed between the Company and Shandong Fishery Parent Company
in April 2006, and Li Execution No. 1299 of Jinan City Lixia District People’s Court (2005), as
locates on No. 43 Road, Lixia District, Jinan City, the office complex of the original book value of RMB
54,221,197.05 is owned by the Company for offsetting the debts. The certificate of the above housing property has
not handled; the Company’s management is coordinating actively with all concerned parties to solve the above
issue of the housing property certificate.
9. Intangible assets41
(1) Particular about intangible assets:
Items
Balance at
year-begin
Increase in the
period
Decrease in the
period
Balance at
period-end
I. Total original book value 10,132,557.00 10,132,557.00
Land use right of Yantai Food 9,929,529.00 9,929,529.00
Other 203,028.00 203,028.00
II. Total amount of accumulated
amortization
2,140,809.71 134,321.88 2,275,131.59
Land use right of Yantai Food 2,032,420.85 118,208.52 2,150,629.37
Other 108,388.86 16,113.36 124,502.22
III. Total net book value of
intangible assets
7,991,747.29 7,857,425.41
Land use right of Yantai Food 7,897,108.15 7,778,899.63
Other 94,639.14 78,525.78
IV. Total impairment provision
Land use right of Yantai Food
Other
V. Total book value of intangible
assets
7,991,747.29 7,857,425.41
Land use right of Yantai Food 7,897,108.15 7,778,899.63
Other 94,639.14 78,525.78
Note：Till 30 June 2010, the land use right and production house were together used for mortgage by Yantai Food,
and the Company gained comprehensive credit authorization of RMB 23 million.
10. Provision for impairment of assets
Decreased in this period
Items
Balance at
year-begin
Accrual
amount
this period
Switching
back
Transferring
out
Balance at
period-end
I. Bad debt provision 15,565,250.88 882,594.82 68,975.84 16,378,869.86
II.Provision for depreciation of
inventory
650,206.41 650,206.41
III. Impairment provision of
financial assets available for sale
IV. Impairment provision of
held-to-maturity investment
V. Impairment provision of
long-term equity investment
33,000,000.00 33,000,000.00
VI. Impairment provision of
investment property
886,512.06 886,512.0642
Decreased in this period
Items
Balance at
year-begin
Accrual
amount
this period
Switching
back
Transferring
out
Balance at
period-end
VII. Impairment provision of
fixed assets
7,571,580.00 7,571,580.00
VIII. Impairment provision of
project material
IX. Impairment provision of
construction in process
X. Impairment provision of
production biological material
asset
Incl. Impairment provision of
mature production biological
material asset
XI. Impairment provision of gas
& oil asset
XII. Impairment provision of
intangible asset
XIII. Impairment provision of
goodwill
XIV. Other
Total 57,673,549.35 882,594.82 68,975.84 58,487,168.33
11. Short-term loans
(1) Short-term loans list according to categories:
Items
Amount in
period-end
Amount in year-begin
Mortgage loan 9,700,000.00 24,000,000.00
Credit loan 9,956,574.49 17,482,275.22
Total 19,656,574.49 41,482,275.22
Note: 1. particular about mortgage loans see details in No. 8 and 9 in V contained in Notes to Financial Statement.
(2) Explanation on short-term loans
There are no overdue loans in period-end.
Short-term loans at period-end decrease 52.61% over that of period-begin, manly due
to the loans paid back to bank from the Company and its subsidiary—HIC this period.43
12. Accounts payable
(1) Account payable list according to age:
Balance in period-end Balance in year-begin
Items
Amount Proportion (%) Amount Proportion (%)
Within 1 year 110,268,152.86 95.37 55,824,450.35 92.92
1-2 years 1,136,889.69 0.98
2-3 years
Over 3 years 4,221,236.61 3.65 4,253,594.84 7.08
Total 115,626,279.16 100.00 60,078,045.19 100.00
Note: 1. The balance did not contain account that should be paid to any major shareholders who own more than
5% (including 5%) of the Company’s share capital.
2.The account payable at period-end increase 92.46% over that of period-begin, mainly due to the increase of raw
materials account paid by Yantai Food in this period, a subsidiary of the Company.
3. The balance has no major account payable with over 1 year.
13. Accounts received in advance
(1) Account received in advance list according to age:
Balance in period-end Balance in year-begin
Items
Amount Proportion (%) Amount Proportion (%)
Within 1 year 744,336.64 68.03 8,500,620.89 96.10
1-2 years
2-3 years
Over 3 years 349,863.72 31.97 349,863.72 3.90
Total 1,094,200.36 100.00 8,850,484.61 100.00
Note: 1. The balance did not contain account that should be paid to any major shareholders who own more than
5% (including 5%) of the Company’s share capital.
2. The account received in advance at period-end decrease 87.64% over that of period-begin, mainly due to Yantai
Food considered accounts of customers received in advance as operating income.
3. The balance has no major account received in advance with over 1 year.
14. Wage payable
Items
Balance in
year-begin
Increase amount
this period
Decrease amount
this period
Balance in
period-end
Salary, bonus, allowance and
subsidy
6,215,185.59 18,325,802.76 16,559,823.51 7,981,164.84
Employee Welfare expenses 763,529.82 763,529.82
Social insurance 263,122.82 3,137,977.83 3,401,100.65
Housing accumulation fund 253,606.03 744,794.20 865,039.84 133,360.39
Labor union outlay and
employee education outlay
879,976.35 150,814.18 76,433.70 954,356.83
Non-monetary welfares44
Items
Balance in
year-begin
Increase amount
this period
Decrease amount
this period
Balance in
period-end
Compensation for dismissal of
relationship of labor force
33,680.00 36,586.00 36,586.00 33,680.00
Other
Including: shares with cash
settlement
Total 7,645,570.79 23,159,504.79 21,702,513.52 9,102,562.06
Note: The balance of wage payable is due to unpaid seaman wages and allowance for sea proceeds but withdrawn.
15. Tax payable
Taxes Balance in period-end Balance in year-begin Notes
Income tax 137,526.35 -88,480.55
Value-added tax -6,764,946.67 -3,141,317.21
Business tax 11,002.36 56,614.69
City planning tax 315.00 3,587.36
Educational surtax 180.00 2,049.92
Water conservancy
fund
585.6
Other 398,653.46 570,999.20
Total -6,216,683.90 -2,596,546.59
Note: Tax payable at period-end decrease 139.42% over that of period-begin, mainly due to the input tax of VAT
for fish purchased by Yantai Food this period.
16. Others account payable
(1) Other account payable list according to age:
Balance in period-end Balance in year-begin
Items
Amount Proportion (%) Amount Proportion (%)
Within 1 year 17,439,245.89 73.91 7,376,550.06 65.17
1-2 years 253,056.56 1.20 940,374.00 8.31
2-3 years 477,182.04 1.27 1,718,363.58 15.18
Over 3 years 3,001,034.07 23.62 1,283,595.61 11.34
Total 21,170,518.56 100.00 11,318,883.25 100.00
Note: 1. the balance did not contain account that should be paid to any major shareholders who own more than 5
%( including 5%) of the Company’s share capital.
2. The balance has no major other account payable with over 1 year.
3. The other account payable at period-end increase 87.04% over that of period-begin, mainly due to the permanent
repairs of ship that withdrawal by Haiyan branch, Shipping Co., and HIC Co., --the subsidiary of the Company.
17. Share capital45
Balance in year-begin Increase/Decrease of this time (+, -) Balance in period-end
Items
Shares Proportion
(%)
New
shares
issued
bonus
share
Capitalization
of public
reserve
othersubtotal Shares 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
shares
Domestic
non-state-owned
legal person’s
shares
Domestic
natural person’s
shares
260,000.00
0.10
260,000.00
0.10
Foreign shares
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
100.00
266,071,320.00
100.00
18. Capital reserves
Items
Balance in
year-begin
Increase amount
this period
Decrease amount
this period
Balance in
period-end
Capital premium 186,283,711.00 186,283,711.00
Other capital
reserve
94,961,504.96 94,961,504.96
Total 281,245,215.96 281,245,215.96
19. Surplus reserves
Items
Balance in
year-begin
Increase amount
this period
Decrease amount
this period
Balance in
period-end
Statutory surplus
reserve
21,908,064.19 21,908,064.19
Arbitrary surplus
reserve46
Items
Balance in
year-begin
Increase amount
this period
Decrease amount
this period
Balance in
period-end
Total 21,908,064.19 21,908,064.19
20. Retained profits
(1) Details of retained profit:
Items Amount
Proportion of
withdrawal and
distribution
Retained profit in last year-end before adjustment -215,109,589.47
Total adjustment of retained profit at year-begin (increase+,
decrease -)
Retained profit in year-end after adjustment -215,109,589.47
Add: net profit attributable to owner of the parent company in
this period
11,357,665.16
Less: Withdrawal of statutory surplus reserve
Withdrawal of arbitrary surplus reserve
Withdrawal of general risk provision
Common shares’ dividend payable
Dividend of common shares transfer to shares
Retained profit at period-end -203,751,924.31
21. Operating income and operating cost
(1) Details of operating income:
Items Amount occurred this period Amount at same period of last year
Main operating income 197,804,359.53 111,925,608.47
Other operating income 946,544.88 944,246.15
Total operating income 198,750,904.41 112,869,854.62
Note: operating income this period increase 76.09% over that of same period of last year, mainly caused by:
increase of exporting income under the strengthened on return self-fishing of tuna purchased and deep process
exporting business from Yantai Food Company this period—the subsidiary of the Company; the tuna fishing
project of Haiyan Branch made increase of income due to the increased sale volume, HIC—subsidiary, increased
rent from the refrigerated-ship newly purchased in last October.
(2) Details of operating cost:
Items Amount occurred this period Amount at same period of last year
Main operating cost 172,517,115.41 95,595,525.01
Other operating cost 728,065.14 715,170.0047
Items Amount occurred this period Amount at same period of last year
Total operating cost 173,245,180.55 96,310,695.01
Note: Operating cost this period increased 79.88% over same period of last year which is caused by the increase
cost of proportion in income this period.
(3) Main operations classified according to industries:
Amount occurred this period Amount at same period of last year
Industries Main operating
income Main operating cost Main operating
income Main operating cost
Oceanic fishing 23,477,270.62 14,168,899.37 44,510,268.34 35,396,774.26
Trading of seafood 1,632,061.07 1,559,085.98
Retting of refrigerated vessel
and vessel management
33,681,834.03 24,146,274.60 23,578,949.78 19,152,591.18
Seafood processing, cold
storage and others
140,645,254.88 134,201,941.44 42,204,329.28 39,487,073.59
Total 197,804,359.53 172,517,115.41 111,925,608.47 95,595,525.01
(4) Main operations classified according to areas:
Amount in this period
Amount in the same period of last
Areas year
Main operating
income Main operating cost Main operating
income
Main operating
cost
Mainland of China 30,541,829.18 15,652,116.64 21,284,272.00 18,243,758.48
Taiwan of China 54,651,085.71 48,254,887.27 48,682,867.34 39,164,931.73
USA 518,537.68 493,549.59
Japan 80,825,364.84 77,771,091.23 29,015,269.17 26,524,530.94
Spain 6,422,854.52 6,113,340.19 2,428,750.22 2,490,787.42
Singapore 10,146,959.69 9,657,982.49 1,448,760.49 795,083.86
Germany 720,415.83 685,699.33 2,594,409.94 2,432,630.32
Ghana 5,326,204.20 5,654,233.60 2,791,550.14 2,493,529.95
Israel 1,558,110.80 1,483,026.18
Korea 6,894,517.87 6,562,274.30
Others 198,479.21 188,914.59 3,679,729.17 3,450,272.31
Total 197,804,359.53 172,517,115.41 111,925,608.47 95,595,525.01
(5) Particular about operation income from top 5 clients of the Company:
Items Operating income
Proportion in total operating income
of the Company (%)
1. Taiwan Fengqun Fishery Co., 44,846,461.56 22.56
2. Japan Weekly Co., Ltd. 34,579,221.43 17.40
3. Japan Shimizu Co., 24,646,832.30 12.40
4. Japan Tokyo Fishery Co., 19,371,263.50 9.75
5. Nikko Fishery Co., 12,123,936.12 6.10
Total 135,567,714.91 68.2148
22. Operating taxes and extras
Items
Amount occurred this
period
Amount at same period of
last year Calculation standards
Business tax 269,743.64 427,070.95
3%-5% of operating
income
City planning tax 16,267.42 21,838.63 7% of paid turnover tax
Educational surtax
7,215.39 9,698.16
1%-3% of paid turnover
tax
House property tax 65,671.24 81,300.00 House area
Other 20,234.85 23,505.01
Total 379,132.54 563,412.75
Note: The operating tax and extras this period decrease 32.71% over that of same period of last year, mainly due to
the free operating tax of international labor transportation income from the subsidiary—Shipping Co., this period.
23. Financial expenses
Category of expense
Amount in this period
Amount in the same period of last
year
Interest expenses 1,230,427.87 1,561,906.84
Less: Interest income 479,296.79 1,209,425.46
Exchange losses 710,966.78 51,833.97
Less: exchange gains 54,992.21 98,441.32
Other expenses 132,487.71 101,004.50
Total 1,539,593.35 406,878.53
Note: The financial expense this period increase 278.39% over same period of last year, mainly due to the increase
of exchange loss from major change of exchange rate on JPY and EUR and the interest income of mortgage
margins that exist in same period of last year.
24. Loss of devaluation of assets
Items
Amount occurred in this
period
Amount occurred in same
period of last period
I. Bad debt losses 813,618.98 -440,778.26
II. Inventory impairment losses
III. Impairment losses of financial
assets available for sale
IV. Impairment loss from investment
held till expiration
V. Impairment loss from long-term
equity investment
VI. Impairment losses of property
investment
VII. Impairment losses of fixed asset
VIII. Project material impairment losses49
Items
Amount occurred in this
period
Amount occurred in same
period of last period
IX. Construction in process impairment
losses
X. Production biological material asset
impairment losses
XI. Gas & oil asset impairment losses
XII. Intangible asset impairment losses
XIII. Goodwill impairment losses
XIV. Other
Total 813,618.98 -440,778.26
Note: The assets impairment losses this period increase 284.59% over same period of last year, mainly due to the
increase of bad debt withdrawals for account receivables this period.
25. Non-operating income
(1) Details of non-operating income:
Items Amount occurred in this period
Amount occurred in same period of
last period
Gains on disposal of non-current
assets
12,000.00
Including: gains from disposal
of fixed assets
12,000.00
gains from disposal of
intangible assets
Gains from debt restructuring
Government subsidy 155,700.00 4,672,395.76
Other 43,186.00 35,328.53
Total 210,886.00 4,707,724.29
Note: The non-operating income this period decrease 95.52% over same period of last year, mainly due to the
governmental fuel subsidy and financial discount received in same period of last year.
(2) Details of government subsidy:
Items
Amount occurred
in this period
Amount occurred in
same period of last
period
Notes
Fuel subsidies 2,872,395.76
Finance discount 1,800,000.00
Finance rebate
Special funds for
foreign economic
cooperation50
Subsidy of position
stability
35,700.00
Subsidy for project of
financial technology
120,000.00
Total 155,700.00 4,672,395.76
26. Non-operating expense
Items Amount occurred in this period
Amount occurred in same period of
last period
Total loss on disposal of
non-current assets
4,036.58
Including: loss from disposal of
fixed assets
4,036.58
Loss from disposal of
intangible assets
External donation expense
Other 37,048.42 32,194.03
Total 41,085.00 32,194.03
27. Calculation procedure for basic earnings per share and diluted earnings per
share
According to the calculation requirement on earnings per share from No.9 Preparation
Rule of Information Disclosure on Publicly Securities Issuing
Enterprises—Calculation and Disclosure of Return on Equity and Earning Per Share
(2010 Amended) (“CSRC [2010] No.2”) and No.1 Explanation Announcement of
Information Disclosure on Publicly Securities Issuing Enterprises—Non-recurring
Gains and Losses (2008)(“CSRC[2008] No.43”) issued by CSRC:
Items Code
Amount occurred
in this period
Amount occurred
in same period of
last period
Net profit attributable to common shareholders of the
Company(I)
P0 11,357,665.16 9,878,539.22
Net profit attributable to common shareholders of the Company
after deducting non-recurring gains and losses(Ⅱ) P0 11,187,864.16 9,875,404.68
Total shares at period-begin S0 266,071,320.00 266,071,320.00
Amount of shares increase from public reserve capitalizing or
share dividend distribution S1
Amount of shares increase from newly issuing shares or shares
transfer from debt Si
Amount of shares decrease from repurchased in report period Sj
Reducing shares in report period Sk
Amount of months in report period M0 6 6
Accumulated months from next month of share increased to
period-end Mi
Accumulated months from next month of share decreased to
period-end Mj
Weighted average of common shares issuing outside S 266,071,320.00 266,071,320.0051
Basic earnings per share (Ⅰ) 0.04 0.04
Basic earnings per share (Ⅱ) 0.04 0.04
Current net profit attributable to common shareholders after
adjustment (Ⅰ) P1 11,357,665.16 9,878,539.22
Current net profit attributable to common shareholders after
adjustment without non-recurring gains and losses (Ⅱ) P1 11,187,864.16 9,875,404.68
Weighted average of common shares increased by warrants,
stock option and convertible bonds etc.
Diluted weighted average of common shares issuing outside 266,071,320.00 266,071,320.00
Diluted earnings per share (Ⅰ) 0.04 0.04
Diluted earnings per share (Ⅱ) 0.04 0.04
(1)Basic earnings per share
Basic earnings per share= P0÷ S
S= S0＋S1＋Si×Mi÷M0– Sj×Mj÷M0-Sk
Among which: po refer to net profit attributable to common shareholders of the
Company or net profit attributable to common shareholders of the Company after
deducting non-recurring gains and losses; S refer to weighted average of common
shares issuing outside; S0 refer to total shares at period-begin; S1 refer to amount of
shares increase from public reserve capitalizing or share dividend distribution; Si refer
to Amount of shares increase from newly issuing shares or shares transfer from debt;
Sj refer to amount of shares decrease from repurchased in report period; Sk refer to
reducing shares in report period; M0 refer to amount of months in report period; Mi
refer to accumulated months from next month of share increased to period-end; Mj
refer to accumulated months from next month of share decreased to period-end
(2)Diluted earnings per share
Diluted earnings per share= P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ Weighted
average of common shares increased by warrants, stock option and convertible bonds
etc.)
Among which: P1 refer to net profit attributable to common shareholders of the
Company or net profit attributable to common shareholders of the Company after
deducting non-recurring gains and losses, and took the influence from diluted
potential common share into consideration, made adjustment according to Accounting
Rule of Enterprise and relevant regulations. While calculating the diluted earnings per
share, the Company took the following into consideration: all influence from diluted
potential common shares towards net profit attributable to common shareholders of
the Company or net profit attributable to common shareholders of the Company
after deducting non-recurring gains and losses and weighted average share, according
to the dilution based on the order of major to minor calculated diluted earnings per
share until reached the minimum amount of diluted earnings per share.
28. Other consolidated income
Item Amount of this
period
Amount of last
period
1. Amount of gains (loss) arising from financial assets available for
sale
Less: tax influence arising from financial assets available for sale
Net amount calculated in other comprehensive income in
early period and transferred to gains and loss in current period
Subtotal52
Item Amount of this
period
Amount of last
period
2. Shares of other comprehensive income in invested units calculated
in equity method
Less: income tax influence arising from shares of other
comprehensive income in invested units calculated in equity method
Net amount calculated in other comprehensive income in
early period and transferred to gains and loss in current period
Subtotal
3. Amount of gains (loss) arising from hedging instrument of cash
flow
Less: income tax influence arising from hedging instrument of cash
flow
Net amount calculated in other comprehensive income in
early period and transferred to gains and loss in current period
Adjustment of original confirmation amounts transferred to
hedged items
Subtotal
4. Translation differences of foreign financial sheet 53,735.42 -362,928.03
Less: net amount from disposal of foreign operation included in gains
and loss currently
Subtotal 53,735.42 -362,928.03
5. Other
Less: influence of other income tax included in other
comprehensive income
Net amount calculated in other comprehensive income in
early period and transferred to gains and loss in current period
Subtotal
Total 53,735.42 -362,928.03
29. Notes to items of cash flow statement
(1) Other received cash related to operating activities
Item Amount
Interest income 479,296.79
Government subsidies 155,700.00
Compensation from insurance company 7,660.00
Current account 5,236,509.56
Total 5,879,166.35
(2) Other paid cash related to operating activities
Item Amount
Including: current accounts paid 15,563,531.80
Transportation costs 252,064.60
Traveling expenses 1,154,903.17
Serving expenses 571,826.98
Water , electricity and rental fee 472,943.25
Official business expenses 495,437.74
Port surcharge 330,946.10
Tariff 79,423.00
Customs inspection fee 329,536.2653
Item Amount
Road maintenance and operating fee 1,230,427.87
Interest expense 45,858.40
Loan for staffs 141,409.72
Public fishing fee 147,888.09
Other 0.00
Total 20,816,196.98
30. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Items
Amount in the
period
Amount in the
same period of
last year
1．Reconciliation of net profit to cash flows from operating activities:
Net profit 11,357,665.16 9,878,539.22
Add: Provision for impairment of assets 813,618.98 -440,778.26
Depreciation of fixed assets, oil assets and productive biological assets 11,314,281.71 10,742,964.16
Amortization of intangible assets 134,321.88 136,258.65
Amortization of long-term prepayments
Losses on disposal of fixed assets, intangible assets and other
long-term assets (income is listed with “- ”) 4,036.58
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 “- ”) 1,539,593.35 1,334,832.08
Investment losses(income is listed with “- ”)
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 “-”) -35,013,620.31 6,606,104.65
Decrease in operating receivables(increase is listed with “-”) -15,618,338.58 1,002,399.39
Increase in operating payables(decrease is listed with “- ”) 56,008,124.76 -5,031,600.19
Others
Net cash flows from operating activities 30,539,683.53 24,228,719.70
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 equivalents
Cash at the end of the year 36,699,425.11 31,487,914.99
Less: Cash at the beginning of the period 35,301,273.89 64,452,404.48
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period54
Items
Amount in the
period
Amount in the
same period of
last year
Net increase in cash and cash equivalents 1,398,151.22 -32,964,489.49
(2) Cash and cash equivalents
Items
Amount in the
period
Amount in the
same period of last
year
1. Cash
Including: Cash on hand 610,110.89 316,698.66
Bank deposit paid at any time 30,979,938.37 28,554,177.65
Other monetary funds paid at any time 5,109,375.85 2,617,038.68
Accounts placed in central bank available for payment
Deposit from other banks
Loan at call from other banks
2. Cash equivalents
Including: Bonds investment expired within three months
3. Cash and cash equivalents at the end of year 36,699,425.11 31,487,914.99
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; RMB 3.2 million respectively at period-begin and at
period-end.
VI. Related parties relationship and their transaction
(I) Recognition of Related party
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.
(II) Related parties relationship
1. Condition of parent company and final controller:55
Name of the Company
Related
relationship
Type of
enterprise
Registration
place
Legal
representative
Nature of business
Registration
capital
Shareholding
proportion of
parent
company in
the
Company
(%)
Voting right
proportion of
parent
company in
the
Company( %)
Ultimate
controller of
the
Company
Code of
organization
institution
Sate-owned Assets of
Shandong Province
Investment Holdings Co.,
Ltd
Parent
Company
State-owned
enterprise
Shandong
Jinan
Liu
Changsuo
Investment and
management,
management and
operation of assets,
managed operations,
investment advisory
RMB1600
million
33.07 33.07
State-owned
Assets of
Shandong
Province
Investment
Holdings
Co., Ltd
16307316-756
2. Subsidiaries condition:
Details of subsidiaries condition are listed on Note 4
3. Condition of other related parties of the Company
Other related parties
Relationship between other
related parties and the
Company
Code of organization
institution
Shandong Luxin Investment Holding Group
Co., Ltd.
Shareholders with 5% share
holding 73577367-X
4. Condition related transaction
The Company has no transactions between related parties which should be disclosed but hadn’t
been disclosed.
VII. Contingency
Till the end of June 30, 2010, the Company had following contingencies:
Guaranteed party Balance
RMB 0’000 Terms of borrowing Guaranteed by
Qingdao Double Wale
Pharmaceutical Co., Ltd. 43,037,681.65 2002.2-2006.7 Shandong Zhonglu Oceanic
Fisheries Co., Ltd.
Note: previous subsidiary of the Company Qingdao Double Whale Pharmaceutical Co., Ltd. hand returned
6,962,318.35 yuan included in 50 million yuan of project loan to Agricultural Bank of China, Qingdao North 2
Branch in last period. In reporting period, the Company guaranteed principle 43,037,681.65 yuan to Double Whale
Pharmaceutical.
VIII. Commitment
The Company had no commitment events which need to be disclosed.
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.
XI. Notes to main items of parent company’s financial statements
1. Accounts receivable
(1) Account receivable classified according to category:
Categories Balance at period-end Balance at period-begin
Book balance Provision for bad debts Book balance Provision for bad debts
Amount Proportion
(%) Amount Proportion
(%) Amount Proportion
(%) Amount Proportion
(%)
Single
substantive
account
receivable
3,600,962.12 37.82 3,600,962.12 59.38 4,770,672.97 66.49 3,659,447.66 60.34
Accounts
receivable
not
substantive
singly but
in a rather
risky
portfolio
on credit
risk
character
2,404,859.24 25.26 2,404,859.24 39.66 2,404,859.24 33.51 2,404,859.24 39.6657
Categories Balance at period-end Balance at period-begin
Book balance Provision for bad debts Book balance Provision for bad debts
Amount Proportion
(%) Amount Proportion
(%) Amount Proportion
(%) Amount Proportion
(%)
Other
accounts
receivable
not
substantive
singly
3,514,838.77 36.92 58,485.54 0.96
Total 9,520,660.13 100.00 6,064,306.90 100.00 7,175,532.21 100.00 6,064,306.90 100.00
Note: details of classification of accounts receivable are listed on Note V.2 of this financial sheet
(2) Condition on accruing provision for bad debts of accounts receivable with significant
single amount or offered single devaluation test though un-significant
Contents of accounts
receivable Book balance Amounts of
bad debts
Accruing
proportion
(%)
Reason
PANDA Company 3,600,962.12 3,600,962.12 100% Above 3 years of account age, little
possibility of withdraw
(3) Explanation of accounts receivable that individual amounts are not
substantive but portfolio risk is great according to the portfolio characteristics of
credit risk
Details are listed on Note 5.2 of this financial sheet
(4) Accounts receivable classified according to account age:
Balance at period-end Balance at period-begin
Account age Book balance Book balance
Amount Proportion
(%)
Provision for
bad debts Amount Proportion
(%)
Provision for
bad debts
Within 6
months 3,000,000.00 31.51 7,001.66 1,169,710.85 16.30 58,485.54
6 months to 1
year 514,838.77 5.41 51,483.88
1 to 2 years
2 to 3 years
Over 3 years 6,005,821.36 63.08 6,005,821.36 6,005,821.36 83.70 6,005,821.36
Total 9,520,660.13 100.00 6,064,306.90 7,175,532.21 100.00 6,064,306.90
(5) Condition of related parties accounts receivable
Units Relationship with
the Company Amount
Proportion in total
other accounts
receivable (%)
Shandong Province Zhonglu ocean (Yantai)
Foods Co., Ltd.
Subsidiary 3,000,000.00 31.51
2. Other accounts receivable
(1) Other accounts receivable classified according to category:
Amounts at period-end Amounts at period-begin
Category Book balance Provision for bad debts Book balance Provision for bad debts
Amount Proportion
(%) Amount Proportion
(%) Amount Proportion
(%) Amount Proportion
(%)
Single
accounts 35,605,709.14 89.00 4,260,000.00 54.75 44,686,931.78 90.10 4,260,000.00 54.7558
Amounts at period-end Amounts at period-begin
Category Book balance Provision for bad debts Book balance Provision for bad debts
Amount Proportion
(%) Amount Proportion
(%) Amount Proportion
(%) Amount Proportion
(%)
receivable
with
significant
amount
Accounts
receivable
that
individual
amounts are
not
significant
but portfolio
risk is great
according to
the portfolio
characteristics
of credit risk
3,386,046.86 8.46 3,386,046.86 43.52 3,406,064.70 6.87 3,406,064.70 43.77
Other
unimportant
accounts
receivable
1,016,254.80 2.54 134,787.73 1.73 1,502,181.11 3.03 114,769.89 1.48
Total 40,008,010.80 100.00 7,780,834.59 100.00 49,595,177.59 100.00 7,780,834.59 100.00
Note: classification of other accounts receivable was listed on Note 5.4.
(2) Condition on accruing provision for bad debts of accounts receivable with
significant single amount or offered single devaluation test though un-significant
Content of accounts receivable Book balance Amounts of
bad debts
Accruing
proportion
(%)
Reason
Shandong Province Zhonglu Ocean
(Yantai) Foods Co., Ltd. 17,979,224.06 Subsidiary, none
withdrawal risk
Shandong Province Zhonglu
FisheriesShipping Company 9,326,655.09 Subsidiary, none
withdrawal risk
Zhongchanjing Investment Co., Ltd. 4,260,000.00 4,260,000.00 100%
Above 3 years of
account age, little
withdrawal possibility
YAWADDO FISHERIES COMPANY
LIMITED 4,039,829.99 Subsidiary, none
withdrawal risk
Total 35,605,709.14 4,260,000.00
(3) Accounts receivable that individual amounts are not significant but portfolio
risk is great according to the portfolio characteristics of credit risk
Details are listed on Note 5.4 of this financial sheet
(4) Other accounts receivable classified according to account age:
Balance at period-end Balance at period-begin
Account age Book balance Book balance
Amount Proportion
(%)
Provision for
bad debts Amount Proportion
(%)
Provision for
bad debts
Within 6
months 31,855,344.20 79.62 84,270.74 41,841,212.89 84.37 70,031.51
6 months to 1
year
421,949.74 1.05
8,791.99
1 to 2 years 3,050.00 0.01 915.00 3,280.00 0.01 915.0059
Balance at period-end Balance at period-begin
Account age Book balance Book balance
Amount Proportion
(%)
Provision for
bad debts Amount Proportion
(%)
Provision for
bad debts
2 to 3 years 84,620.00 0.21 43,810.00 84,620.00 0.17 43,823.38
Over 3 years 7,643,046.86 19.11 7,643,046.86 7,666,064.70 15.45 7,666,064.70
Total 40,008,010.80 100.00 7,780,834.59 49,595,177.59 100.00 7,780,834.59
(5) Top 5 units with other accounts receivable:
Units
Relationship
with the
Company
Amount Age limit
Proportion in total
other accounts
receivable (%)
Shandong Province Zhonglu Ocean
(Yantai) Foods Co., Ltd. Subsidiary 17,979,224.06 Within 1
year 44.94
Shandong Province Zhonglu Fisheries
Shipping Company Subsidiary 9,326,655.09 Within 1
year 23.31
Zhongchanjing Investment Co., Ltd. Non-related
parties 4,260,000.00 Above 3
years 10.65
YAWADDO FISHERIES COMPANY
LIMITED
Leasing
business 4,039,829.99 Within 1
year 10.10
Japan Dafa Non-related
parties 288,896.39 Above 3
years 0.72
Total 35,894,605.53 89.72
(6)Accounts receivable of related parties:
Units Relationship with
the Company Amount
Proportion in total
other accounts
receivable (%)
YAWADDO FISHERIES COMPANY
LIMITED Subsidiary 4,039,829.99 10.10
Shandong Province Zhonglu Fisheries
Shipping Company Subsidiary 9,326,655.09 23.31
Shandong Province Zhonglu Ocean (Yantai)
Foods Co., Ltd. Subsidiary 17,979,224.06 44.94
Total 31,345,709.14 78.35
3. Long-term accounts receivable
Items Balance at period-end Balance at period-begin
Finance leases
Selling fixed assets with installment
payment 7,802,091.87 7,409,265.63
Including: receivable accounts of
sales of fixed assets 19,460,370.00 19,460,370.00
Unrecognized finance
income -11,658,278.13 -12,051,104.37
Offering labor with installment
payment
Total 7,802,091.87 7,409,265.63
Note: the Company sold its own ship Zhonglu Fishier to subsidiary YAW ADDO FISHERIES Company, and then
through overall rental of YAW ADDO FISHERIES COMPANY LIMITED got valid fishing license in Ghana's
ocean. YAW ADDO FISHERIES COMPANY LIMITED got fishing license on Mar of 2008.
Ships valued RMB 10,897,999.06 previously; accumulated depreciation was RMB 3,555,331.52, net amount
RMB7, 342,667.54. Equivalent was RMB 21,065,400.00 (contract rate was 8%).
Sales price of ships was 3 million dollars, installment payment in 20 years. Exchange rate on contract day was 1：
7.0218. Unrecognized finance income was RMB13, 722,732.46.
Till Jun 30th of 2010 balance of long-term accounts receivable was RMB19, 460,370.00; Current amortization of
unrecognized finance income was RMB392, 826.24, balance of unrecognized finance income at period-end was60
RMB11, 658,278.13.
4. Long-term equity investment61
Invested units Calculation
method
Original investment
cost Balance at period-begin
Increase
or
decrease
Balance at period-end
Shareholding
proportion in
invested
units (%)
Voting
right
proportion
in invested
units (%)
Explanation of
difference
between
shareholding
proportion and
voting right
proportion
Devaluation provision
Accruing
devaluation
provision
in this
period
Cash
dividend
in this
period
China Southern Securities
Co., Ltd.
Cost
method 33,000,000.00 33,000,000.00 33,000,000.00 0.87 0.87 33,000,000.00
HABITAT
INTERNATIONAL CORP.
Cost
method 12,476,145.60 12,476,145.60 12,476,145.60 100.00 100.00
Shandong Province
Zhonglu Fisheries Shipping
Company
Cost
method
21,380,320.00 22,869,513.38 22,869,513.38 100.00 100.00
Shandong Province
Zhonglu Ocean (Yantai)
Foods Company
Cost
method
32,280,000.00 55,448,185.24 55,448,185.24 74.23 74.23
Total —— 99,136,465.60 123,793,844.22 123,793,844.22 —— —— —— 33,000,000.0062
5. Operating income and operating cost
(1) Particulars about operating income:
Item Amount of this period Amount of last period
Main business income 69,866,647.85 48,249,772.73
Other business income 774,498.91 794,043.01
Total business income 70,641,146.76 49,043,815.74
(2) Particulars about operating cost:
Item Amount of this period Amount of last period
Main business cost 60,063,645.10 39,293,577.99
Other business cost 728,065.14 715,170.00
Total business cost 60,791,710.24 40,008,747.99
(3) Main business classified according to industry:
Amount of this period Amount of last period
Industry Main business
income
Main business
cost
Main
business
profit
Main business
income
Main business
cost
Main
business
profit
Offshore fishing 69,037,807.22 59,318,105.52 9,719,701.70 46,617,711.66 37,734,492.01 8,883,219.65
Fish processing, cold storage
and other
828,840.63 745,539.58 83,301.05 1,632,061.07 1,559,085.98 72,975.09
(4) Operating income of top 5 clients of the Company in this period:
Item Operating income Proportion in total operating income
of the Company (%)
1. Shandong Province Zhonglu Ocean (Yantai)
Foods Co., Ltd.
49,174,675.37 69.61
2. Taiwan Fengqun Fisheries Company 11,164,627.53 15.80
3. Ningbo Fengsheng Food Co., Ltd. 8,478,388.34 12.00
4. Fuzhou Top Taste Food Co., Ltd. 220,115.98 0.31
Total 69,037,807.22 97.72
6. Supplementary information of cash flow statement
Item Amount of this
period
Amount of last
period
1．Reconciliation of net profit to cash flows from operating
activities:
Net profit 3,326,335.92 8,748,313.22
Add: Provision for impairment of assets -78,568.50
Depreciation of fixed assets, oil assets and productive biological
assets 6,583,632.43 6,362,025.48
Amortization of intangible assets 13,446.72 12,749.04
Amortization of long-term prepayments
Losses on disposal of fixed assets, intangible assets and other
long-term assets (income is listed with “- ”)
Losses on scrapping of fixed assets(income is listed with “- ”) 442.88
Losses on fair value change(income is listed with “- ”)
Financial expenses(income is listed with “- ”) -411,637.28 497,639.0063
Item Amount of this
period
Amount of last
period
Investment losses(income is listed with “- ”)
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 “-”) -3,161,797.02 -3,915,124.84
Decrease in operating receivables(increase is listed with “-”) 9,986,713.13 -17,720,130.00
Increase in operating payables(decrease is listed with “- ”) 12,964,410.43 1,156,825.73
Others
Net cash flows from operating activities 29,301,547.21 -4,936,270.87
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 equivalents
Cash at the end of the year 16,681,951.59 19,838,816.80
Less: Cash at the beginning of the period 7,632,634.38 39,281,486.67
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 9,049,317.21 -19,442,669.87
XII. Supplementary Information to the Financial Statements
1. Non-recurring gains and loss
(1). In accordance with "public Offering of Securities Companies to Disclose Information
Explanatory Notice No. 1 - Non-Recurring Gains And Losses (2008)” [Commission Notice
(2008) 43] promulgated by CSRC, the occurring amount of the non-recurring gains and profit
were as followings:
Item Amount Explanation
1．Gains and loss from disposal of non-current assets, including write-off
part of the accrued provision for asset impairment 7,963.42
2．Ultra vires approval, or none formal approval documents, or accidental
tax return and relief
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) 155,700.00
Position stability subsidies,
financial subsidies for technology
projects
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 expense64
Item Amount Explanation
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 is 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 6,137.58
21. Other losses/gains items conforming the definitions of non-recurring
gains/losses
22．Influenced amount of minority shareholders’ equity
23．Impact on income tax
Total 169,801.00
2. Return on equity and earnings per share
Profit in the report period Earnings per share (RMB)
weighted
average of return
on equity
Basic earnings
per share
Diluted earnings
per share
Net profit attributable to common shareholders 3.15 0.04 0.04
Net profit excluding extraordinary items attributable to
common shareholders 3.11 0.04 0.04
XIII. Approval of financial statement
The Financial Statement was discussed and approved by the Board of Directors of the
Company on Aug 25th of 2010.65
Supplementary Information to the Financial Statements
Expressed in Renminbi Yuan
I. Calculation list of return on equity and earning per shares
Return on equity and earnings per share calculated according to “Rule 9 on Information
Disclosure by Companies Publicly Issuing Securities” issued by the China Securities
Regulatory Commission.
Profit in the report period Return on net assets
(%)
Fully diluted Weighted average
Net profit attributable to common shareholders 3.11% 3.15%
Net profit excluding extraordinary items attributable to
common shareholders
3.06% 3.11%
II. Non-recurring gains and losses
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:
Item Amount
1. Profit and loss on non-current assets 7,963.42
2．All types 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)
155,700.00
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 Company66
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 is 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 6,137.58
21. Other losses/gains items conforming the definitions of non-recurring gains/losses
22．Influenced amount of minority shareholders’ equity
23．Impact on income tax
Total 169,801.00
Consolidated Balance Sheet
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited Jun. 30, 2010 Unit: RMB
Items Note Balance at period-end Balance at period-begin
Current assets:
Monetary funds V. (1) 39,899,425.11 38,501,273.89
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable
Accounts receivable V. (2) 25,641,360.10 11,195,724.60
Accounts in advance V. (3) 12,334,305.13 9,008,430.89
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
Dividend receivable
Other receivables V. (4) 2,033,257.76 4,849,231.23
Purchase restituted finance asset
Inventories V. (5) 136,993,685.01 101,980,064.70
Non-current asset due within one year
Other current assets
Total current assets 216,902,033.11 165,534,725.31
Non-current assets:
Granted loans and advances
Finance asset available sales67
Held-to-maturity securities
Long-term account receivable
Long-term equity investment V. (6)
Investment property V. (7) 40,259,718.06 40,869,050.82
Fixed assets: V. (8) 257,755,531.68 267,143,781.00
Construction in progress 3,830,735.00
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets V. (9) 7,857,425.41 7,991,747.29
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset
Other non-current asset
Total non-current asset 309,703,410.15 316,004,579.11
Total assets 526,605,443.26 481,539,304.42
Current liabilities:
Short-term loans V. (11) 19,656,574.49 41,482,275.22
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Transaction financial liabilities
Notes payable
Accounts payable V. (12) 115,626,279.16 60,078,045.19
Accounts received in advance V. (13) 1,094,200.36 8,850,484.61
Selling financial asset of repurchase
Commission charge and commission
payable
Wage payable V. (14) 9,102,562.06 7,645,570.79
Taxes payable V. (15) -6,216,683.90 -2,596,546.59
Interest payable
Dividend payable 459,329.80 459,329.80
Other accounts payable V. (16) 21,170,518.56 11,318,883.25
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 160,892,780.53 127,238,042.27
Non-current liabilities:68
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 160,892,780.53 127,238,042.27
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) -203,751,924.31 -215,109,589.47
Balance difference of foreign currency
translation
235,599.80 181,864.38
Total owner’s equity attributable to parent
company
365,708,275.64 354,296,875.06
Minority interests 4,387.09 4,387.09
Total shareholder’s equity 365,712,662.73 354,301,262.15
Total liabilities and shareholder’s equity 526,605,443.26 481,539,304.42
Principal of the Company:
Person in charge of accounting works:
Person in charge of accounting institutes:
Balance Sheet of Parent Company
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited Jun.30, 2010 Unit: RMB
Items Notes No. Amount at period-end Amount at year-begin
Current assets:
Monetary funds 19,881,951.59 10,832,634.38
Settlement provisions
Notes receivable
Accounts receivable VI. (1) 3,456,353.23 1,111,225.31
Accounts in advance 1,565,829.73 3,907,012.95
Interest receivable
Dividend receivable
Other receivables VI. (2) 32,227,176.21 41,814,343.00
Inventories 41,000,359.18 37,838,562.16
Non-current asset due within one year69
Other current assets
Total current assets 98,131,669.94 95,503,777.80
Non-current assets:
Finance asset available sales
Held-to-maturity securities
Long-term account receivable VI. (3) 7,802,091.87 7,409,265.63
Long-term equity investment VI. (4) 90,793,844.22 90,793,844.22
Investment property 40,259,718.06 40,869,050.82
Fixed assets: 96,412,771.17 102,350,698.72
Construction in progress 3,830,735.00
Engineering material 0.00
Disposal of fixed asset 0.00
Productive biological asset 0.00
Oil and gas asset
Intangible assets 73,956.77 87,403.49
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset
Other non-current asset
Total non-current asset 239,173,117.09 241,510,262.88
Total assets 337,304,787.03 337,014,040.68
Current liabilities:
Short-term loans 16,000,000.00
Transaction financial liabilities
Notes payable
Accounts payable 13,664,691.89 7,342,602.93
Accounts received in advance 379,863.72 1,036,100.57
Wage payable 6,392,953.07 4,701,267.66
Taxes payable 1,577.59 -16,466.51
Interest payable
Dividend payable 459,329.80 459,329.80
Other accounts payable 12,431,338.21 6,842,509.40
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 33,329,754.28 36,365,343.8570
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 33,329,754.28 36,365,343.85
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 -260,411,048.75 -263,737,384.67
Minority interests
Total shareholders’ equity 303,975,032.75 300,648,696.83
Total liabilities and shareholders’ equity 337,304,787.03 337,014,040.68
Principal of the Company:
Person in charge of accounting works:
Person in charge of accounting institutes:
Consolidated Profit Statement
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited Jan.-Jun. of 2010 Unit: RMB
Item Note Amount of this
period Amount of last period
I. Total operating income 198,750,904.41 112,869,854.62
Including: Operating income V.(21) 198,750,904.41 112,869,854.62
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 187,224,291.65 107,666,845.66
Including: Operating cost V.(21) 173,245,180.55 96,310,695.01
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve71
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras V.(22) 379,132.54 563,412.75
Sales expenses 1,320,322.80 1,432,873.90
Administration expenses 9,926,443.43 9,393,763.73
Financial expenses(singly listed gains from
exchange if there were subsidiaries of financial
industry)
V.(23) 1,539,593.35 406,878.53
Losses of devaluation of asset V.(24) 813,618.98 -440,778.26
Add: Changing income of fair value(Loss is
listed with “-”)
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated
company and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) 11,526,612.76 5,203,008.96
Add: Non-operating income V.(25) 210,886.00 4,707,724.29
Less: Non-operating expense V.(26) 41,085.00 32,194.03
Including: Disposal loss of non-current asset
IV. Total Profit (Loss is listed with “-”) 11,696,413.76 9,878,539.22
Less: Income tax 338,748.60
V. Net profit (Net loss is listed with “-”) 11,357,665.16 9,878,539.22
Net profit attributable to owner’s equity of
parent company
11,357,665.16 9,878,539.22
Minority shareholders’ gains and losses
VI. Earnings per share
i. Basic earnings per share V.(27) 0.04 0.04
ii. Diluted earnings per share V.(27) 0.04 0.04
VII. Other comprehensive income V.(28) 53,735.42 -362,928.03
VIII. Total comprehensive income 11,411,400.58 9,515,611.19
Including: total comprehensive income
attributable
to parent company
11,411,400.58 9,515,611.19
Total comprehensive income attributable
to minority shareholders
Principal of the Company:
Person in charge of accounting works:
Person in charge of accounting institutes:
Profit Statement of Parent Company
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited Jan.-Jun. of 2010 Unit: RMB
Item Note Amount of this period Amount of last period
I. Operating income VI. (5) 70,641,146.76 49,043,815.7472
Less: Operating cost VI. (5) 60,791,710.24 40,008,747.99
Operating tax and extras 117,861.05 134,990.11
Sales expenses 429,350.15 726,401.97
Administration expenses 6,391,703.86 6,120,784.07
Financial expenses -402,502.34 -1,927,532.83
Losses of devaluation of asset -78,568.50
Add: Changing income of fair value(Loss is listed
with “-”)
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated
company and joint venture
II. Operating profit (Loss is listed with “-”) 3,313,023.80 4,058,992.93
Add: Non-operating income 13,755.00 4,689,320.29
Less: Non-operating expense 442.88
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) 3,326,335.92 8,748,313.22
Less: Income tax
IV. Net profit (Net loss is listed with “-”) 3,326,335.92 8,748,313.22
V. Earnings per share:
(1) Basic earnings per share (yuan/share) 0.01 0.03
(2) Diluted earnings per share (yuan/share) 0.01 0.03
VI. Other comprehensive income
VII. Total comprehensive income 3,326,335.92 8,748,313.22
Principal of the Company: Person in charge of accounting works:
Person in charge of accounting institutes:
Consolidated Cash Flow Statement
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited Jan.-Jun., 2010 Unit: RMB73
Item Note Amount of this period Amount of last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and
providing labor services
200,778,843.11 101,115,502.72
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 12,110,261.80 2,689,668.31
Other cash received concerning operating activities V. (29) 5,879,166.35 18,170,338.95
Subtotal of cash inflow arising from operating activities 218,768,271.26 121,975,509.98
Cash paid for purchasing commodities and receiving
labor service
147,592,413.15 72,943,945.68
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 18,319,490.81 15,682,054.54
Taxes paid 1,500,486.79 1,127,216.05
Other cash paid concerning operating activities V. (29) 20,816,196.98 7,993,574.01
Subtotal of cash outflow arising from operating activities 188,228,587.73 97,746,790.28
Net cash flows arising from operating activities 30,539,683.53 24,228,719.70
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income
Net cash received from disposal of fixed, intangible
and other long-term assets
12,000.00
Net cash received from disposal of subsidiaries and
other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 12,000.00 -74
Cash paid for purchasing fixed, intangible and other
long-term assets
6,184,871.09 1,853,227.11
Cash paid for investment
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 6,184,871.09 1,853,227.11
Net cash flows arising from investing activities -6,172,871.09 -1,853,227.11
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 5,390,423.27 46,020,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 5,390,423.27 46,020,000.00
Cash paid for settling debts 27,216,124.00 88,025,150.00
Cash paid for dividend and profit distributing or
interest paying
1,142,960.49 1,334,832.08
Including: Dividend and profit of minority
shareholder paid by subsidiaries
Other cash paid concerning financing activities - 12,000,000.00
Subtotal of cash outflow from financing activities 28,359,084.49 101,359,982.08
Net cash flows arising from financing activities -22,968,661.22 -55,339,982.08
IV. Influence on cash due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents 1,398,151.22 -32,964,489.49
Add: Balance of cash and cash equivalents at the period
-begin
35,301,273.89 64,452,404.48
VI. Balance of cash and cash equivalents at the period -end 36,699,425.11 31,487,914.99
Principal of the Company:
Person in charge of accounting works:
Person in charge of accounting institutes:
Cash Flow Statement of Parent Company
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited Jan.-Jun., 2010 Unit: RMB
Item Note Amount of this period Amount of last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and
providing labor services
67,825,109.28 34,787,565.52
Write-back of tax received 41,253.30
Other cash received concerning operating 9,828,638.44 18,850,805.1475
activities
Subtotal of cash inflow arising from operating
activities
77,695,001.02 53,638,370.66
Cash paid for purchasing commodities and
receiving labor service
36,507,917.06 25,144,732.11
Cash paid to/for staff and workers 8,352,520.06 5,707,601.16
Taxes paid 423,254.86 292,511.20
Other cash paid concerning operating activities 3,109,761.83 27,429,797.06
Subtotal of cash outflow arising from operating
activities
48,393,453.81 58,574,641.53
Net cash flows arising from operating
activities
29,301,547.21 -4,936,270.87
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income
Net cash received from disposal of fixed,
intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
activities
Subtotal of cash inflow from investing activities - -
Cash paid for purchasing fixed, intangible
and other long-term assets
3,867,550.00 8,760.00
Cash paid for investment
Net cash paid for subsidiaries and other units
Other cash paid concerning investing
activities
Subtotal of cash outflow from investing activities 3,867,550.00 8,760.00
Net cash flows arising from investing
activities
-3,867,550.00 -8,760.00
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 28,000,000.00
Other cash received concerning financing
activities
Subtotal of cash inflow from financing activities - 28,000,000.00
Cash paid for settling debts 16,000,000.00 30,000,000.00
Cash paid for dividend and profit distributing
or interest paying
384,680.00 497,639.00
Other cash paid concerning financing
activities
12,000,000.00
Subtotal of cash outflow from financing activities 16,384,680.00 42,497,639.0076
Net cash flows arising from financing
activities
-16,384,680.00 -14,497,639.00
IV. Influence on cash due to fluctuation in exchange
rate
V. Net increase of cash and cash equivalents 9,049,317.21 -19,442,669.87
Add: Balance of cash and cash equivalents at the
period -begin
7,632,634.38 39,281,486.67
VI. Balance of cash and cash equivalents at the
period–end
16,681,951.59 19,838,816.80
Principal of the Company: Person in charge of accounting works:
Person in charge of accounting institutes:77
Consolidated Statement on Changes of Owners' Equity (This Period)
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited June. 30, 2010 Unit: RMB
Amount of this period
Owners' equity attributable to the parent company
Item
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
-215,109,589.47 181,864.38
4,387.09
354,301,262.15
Add: Retroactive 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
-215,109,589.47 181,864.38
4,387.09
354,301,262.15
III. Increase/ Decrease in this year (Decrease
is listed with'"-")
-
- -
-
11,357,665.16 53,735.42
-
11,411,400.58
(I) Net profit
11,357,665.16
11,357,665.16
(II) Profits and losses calculating into owners'
equity
-
- -
-
- 53,735.42
-
53,735.42
1. Net changing amount of fair value of
financial assets available for sale
-
2. Effect of changes of other owners' equity of
-78
invested units under equity method
3. Effect of income tax related to owners'
equity
-
4. Conversion margin in foreign currency
report 53,735.42 53,735.42
5.Others
-
Total of (I)and (II)
-
- -
-
11,357,665.16 53,735.42
-
11,411,400.58
(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
-79
4.Others
-
IV. Balance at the end of this report period 266,071,320.00 281,245,215.96 - 21,908,064.19 -203,751,924.31 235,599.80 4,387.09 365,712,662.73
Principal of the Company: Person in charge of accounting works: Person in charge of accounting institutes:
Consolidated Statement on Changes of Owners' Equity (Last Period)
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited Jun. 30, 2010 Unit:
RMB
Amount in the same period of last year
Owners' equity attributable to the parent company
Item
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
-230,420,103.14 547,477.12
4,387.09
339,356,361.22
Add: Retroactive 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 profit80
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
-
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)
-81
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
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:
Statement on Changes of Owners' Equity of Parent Company (This Period)
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited Jun. 30, 2010 Unit: RMB
Amount of this period
Item
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 -263,737,384.67
- 300,648,696.83
Add: Changes of accounting policy
-
Error correction of the last period
-
Others
-82
II. Balance at the beginning of this year 266,071,320.00 279,130,089.16 - 19,184,672.34 -263,737,384.67
- 300,648,696.83
III. Increase/ Decrease in this year (Decrease is listed with'"-")
-
- -
- 3,326,335.92
- 3,326,335.92
(I) Net profit 3,326,335.92 3,326,335.92
(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)
-
- -
- 3,326,335.92
- 3,326,335.92
(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
-83
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 -260,411,048.75
- 303,975,032.75
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 (Last Period)
Prepared by Shandong Zhonglu Oceanic Fisheries Company Limited Jun. 30, 2010 Unit: RMB
Amount in the same period of last year
Item
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 8,748,313.2284
- - - -
(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 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)85
-
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:86
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 legal representative,
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 documents.
Shandong Zhonglu Oceanic Fisheries Company Limited
Chairman of the Board: Wang Zhao’an
August 27, 2010
