深纺织Ａ(000045)深纺织Ｂ2001年年度报告（英文版）

ＳＨＥＮＺＨＥＮ ＴＥＸＴＩＬＥ （ＨＯＬＤＩＮＧＳ） ＣＯ．， ＬＴＤ． ２００１ ＡＮＮＵＡＬ ＲＥＰＯＲＴ （Ｂ） Ｉｍｐｏｒｔａｎｔ Ｄｅｃｌａｒａｔｉｏｎ： Ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｈｅｒｅｂｙ ｇｕａｒａｎｔｅｅｓ ｔｈａｔ ｔｈｅｒｅ ａｒｅ ｎｏ ｍｉｓｓｔａｔｅｍｅｎｔ， ｍｉｓｌｅａｄｉｎｇ ｒｅｐｒｅｓｅｎｔａｔｉｏｎ ｏｒ ｉｍｐｏｒｔａｎｔ ｏｍｉｓｓｉｏｎｓ ｉｎ ｔｈｉｓ ｒｅｐｏｒｔ ａｎｄ ｓｈａｌｌ ａｓｓｕｍｅ ｊｏｉｎｔ ａｎｄ ｓｅｖｅｒａｌ ｌｉａｂｉｌｉｔｙ ｆｏｒ ｔｈｅ ａｕｔｈｅｎｔｉｃｉｔｙ， ａｃｃｕｒａｃｙ ａｎｄ ｃｏｍｐｌｅｔｅｎｅｓｓ ｏｆ ｔｈｅ ｃｏｎｔｅｎｔｓ ｈｅｒｅｏｆ． Ｓｈｅｎｚｈｅｎ Ｐｅｎｇｃｈｅｎｇ Ｃｅｒｔｉｆｉｅｄ Ｐｕｂｌｉｃ Ａｃｃｏｕｎｔａｎｔｓ ａｎｄ Ｈｏ ａｎｄ Ｈｏ ＆ Ｃｏｍｐａｎｙ ｉｓｓｕｅｄ ｑｕａｌｉｆｉｅｄ ａｕｄｉｔｏｒｓ ｒｅｐｏｒｔ ｆｏｒ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ ａｎｄ ｔｈｅ Ｓｕｐ ｅｒｖｉｓｏｒｙ Ｃｏｍｍｉｔｔｅｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｍａｄｅ ｄｅｔａｉｌｅｄ ｅｘｐｌａｎａｔｉｏｎ ａｂｏｕｔ ｒｅｌｅｖａｎｔ ｍａｔｔｅｒｓ． Ｉｎｖｅｓｔｏｒｓ ａｒｅ ａｄｖｉｓｅｄ ｔｏ ｒｅａｄ ｃａｒｅｆｕｌｌｙ． Ｉ． Ｂｒｉｅｆ Ｉｎｔｒｏｄｕｃｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ （Ｉ） Ｓｔａｔｕｔｏｒｙ Ｎａｍｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ Ｉｎ Ｃｈｉｎｅｓｅ ： 深圳市 （集 ）股份有限公司 Ｉｎ Ｅｎｇｌｉｓｈ ： ＳＨＥＮＺＨＥＮ ＴＥＸＴＩＬＥ （ＨＯＬＤＩＮＧＳ） ＣＯ．， ＬＴＤ． Ｓｈｏｒｔ ｆｏｒｍ ｉｎ Ｅｎｇｌｉｓｈ： ＳＴＨＣ （ＩＩ） Ｌｅｇａｌ Ｒｅｐｒｅｓｅｎｔａｔｉｖｅ ： Ｇｕａｎ Ｔｏｎｇｋｅ Ｇｅｎｅｒａｌ Ｍａｎａｇｅｒ： Ｌｉｕ Ｊｕｎｈｏｕ （ＩＩＩ） Ｓｅｃｒｅｔａｒｙ ｏｆ ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ ： Ｃｈａｏ Ｊｉｎｇ Ｃｏｎｔａｃｔ Ａｄｄｒｅｓｓ： ６／Ｆ， Ｓｈｅｎｆａｎｇ Ｂｕｉｌｄｉｎｇ， Ｎｏ．３ Ｈｕａｑｉａｎｇ Ｎｏｒｔｈ Ｒｏａｄ， Ｆｕｔｉａｎ Ｄｉｓｔｒｉｃｔ， Ｓｈｅｎｚｈｅｎ Ｐｏｓｔ Ｃｏｄｅ： ５１８０３１ Ｔｅｌ ： ０７５５－３７７６０４３ Ｆａｘ ： ０７５５－３７７６１３９ Ｅ－ｍａｉｌ： ｃｊａｎｅ＠ｍａｉｌ．ｃｈｉｎａ．ｃｏｍ （ＩＶ） Ｒｅｇｉｓｔｅｒｅｄ Ａｄｄｒｅｓｓ： ６／Ｆ， Ｓｈｅｎｆａｎｇ Ｂｕｉｌｄｉｎｇ， Ｎｏ．３ Ｈｕａｑｉａｎｇ Ｎｏｒｔｈ Ｒｏａｄ， Ｆｕｔｉａｎ Ｄｉｓｔｒｉｃｔ， Ｓｈｅｎｚｈｅｎ Ｏｆｆｉｃｅ Ａｄｄｒｅｓｓ： ６／Ｆ， Ｓｈｅｎｆａｎｇ Ｂｕｉｌｄｉｎｇ， Ｎｏ．３ Ｈｕａｑｉａｎｇ Ｎｏｒｔｈ Ｒｏａｄ， Ｆｕｔｉａｎ Ｄｉｓｔｒｉｃｔ， Ｓｈｅｎｚｈｅｎ Ｐｏｓｔ Ｃｏｄｅ： ５１８０３１ Ｅ－ｍａｉｌ ： ｓｚｔｅｘｔ＠ｓｚｏｎｌｉｎｅ．ｎｅｔ （Ｖ） Ｎｅｗｓｐａｐｅｒｓ ｆｏｒ Ｉｎｆｏｒｍａｔｉｏｎ Ｄｉｓｃｌｏｓｕｒｅ： Ｓｅｃｕｒｉｔｉｅｓ Ｔｉｍｅｓ， Ｈｏｎｇ Ｋｏｎｇ Ｃｏｍｍｅｒｃｉａｌ Ｄａｉｌｙ Ｉｎｔｅｒｎｅｔ Ｗｅｂ Ｓｉｔｅ ｆｏｒ Ｐｕｂｌｉｓｈｉｎｇ ｔｈｅ Ａｎｎｕａｌ Ｒｅｐｏｒｔ： ｈｔｔｐ：／／ｗｗｗ．ｃｎｉｎｆｏ．ｃｏｍ．ｃｎ Ｔｈｅ Ｐｌａｃｅ Ｗｈｅｒｅ ｔｈｅ Ａｎｎｕａｌ Ｒｅｐｏｒｔ ｉｓ Ｐｒｅｐａｒｅｄ ａｎｄ Ｐｌａｃｅｄ： ｔｈｅ Ｏｆｆｉｃｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ （ＶＩ） Ｓｔｏｃｋ Ｅｘｃｈａｎｇｅ ｗｉｔｈ Ｗｈｉｃｈ ｔｈｅ Ｃｏｍｐａｎｙ ｓ Ｓｔｏｃｋｓ Ａｒｅ Ｌｉｓｔｅｄ： Ｓｈｅｎｚｈｅｎ Ｓｔｏｃｋ Ｅｘｃｈａｎｇｅ Ｓｈｏｒｔ Ｆｏｒｍ ｏｆ ｔｈｅ Ｓｔｏｃｋ ： ＳＨＥＮ ＴＥＸＴＩＬＥ Ａ ＳＨＥＮ ＴＥＸＴＩＬＥ Ｂ Ｓｔｏｃｋ Ｃｏｄｅ ： ００００４５ ２０００４５ ＩＩ． Ｆｉｎａｎｃｉａｌ Ｈｉｇｈｌｉｇｈｔｓ （ａｄｊｕｓｔｅｄ ｐｕｒｓｕａｎｔ ｔｏ ｉｎｔｅｒｎａｔｉｏｎａｌ ａｃｃｏｕｎｔｉｎｇ ｓｔａｎｄａｒｄｓ， ＲＭＢ ０００） １． Ｍａｉｎ ｆｉｎａｎｃｉａｌ ｄａｔａ ａｎｄ ｉｎｄｉｃａｔｏｒｓ Ｉｔｅｍ ２００１ １９９９ Ｉｎｃｏｍｅ 342,606 292,896 Ｂｅｆｏｒｅ－ｔａｘ ｐｒｏｆｉｔ 28,324 16,032 Ｎｅｔ ｐｒｏｆｉｔ ｏｆ ｔｈｅ ｙｅａｒ 28,199 15,748 Ｅａｒｎｉｎｇｓ ｐｅｒ ｓｈａｒｅ （ＲＭＢ） 0.173 0.096 Ｎｅｔ ａｓｓｅｔ ｉｎｃｏｍｅ ｒａｔｉｏ （％） 9.25 5.63 Ｎｅｔ ｃａｓｈ ｆｌｏｗｓ ｆｒｏｍ ｏｐｅｒａｔｉｎｇ ａｃｔｉｖｉｔｉｅｓ（ＲＭＢ）0.09 0.37 Ｔｏｔａｌ ａｓｓｅｔｓ 682,384 692,843 Ｓｈａｒｅｈｏｌｄｅｒｓ ｅｑｕｉｔｙ （ｎｏｔ ｉｎｃｌｕｄｉｎｇ ｍｉｎｏｒｉｔｙ ｉｎｔｅｒｅｓｔｓ） 307,195 279,563 Ｎｅｔ ａｓｓｅｔｓ ｐｅｒ ｓｈａｒｅ （ＲＭＢ） 1.88 1.71 ２． Ｔｈｅ ｉｎｆｌｕｅｎｃｅ ｏｆ ａｄｊｕｓｔｍｅｎｔ ｐｕｒｓｕａｎｔ ｔｏ ｉｎｔｅｒｎａｔｉｏｎａｌ ａｃｃｏｕｎｔｉｎｇ ｓｔａｎｄａｒｄ ｏｎ ｔｈｅ ｐｒｏｆｉｔ ａｔｔｒｉｂｕｔａｂｌｅ ｔｏ ｓｈａｒｅｈｏｌｄｅｒｓ ａｎｄ ｎｅｔ ａｓｓｅｔｓ ｉｓ ｓｔａｔｅｄ ａｓ ｆｏｌｌｏｗｓ （Ｕｎｉｔ： ＲＭＢ ０００） Ｐｒｏｆｉｔｓ ａｔｔｒｉｂｕｔａｂｌｅ ｔｏ Ｎｅｔ ａｓｓｅｔｓ ｓｈａｒｅｈｏｌｄｅｒｓ ２００１ ２０００ ２００１ ２０００ （Ｒｅｓｔａｔｅｄ） （Ｒｅｓｔａｔｅｄ） Ｓｔａｔｅｄ 25,202 22,831 303,645 278,438 ｐｕｒｓｕａｎｔ ｔｏ Ｃｈｉｎｅｓｅ ａｃｃｏｕｎｔｉｎｇ ｓｔａｎｄａｒｄｓ Ｎｅｇａｔｉｖｅ ５６７ ５６７ － － ｇｏｏｄｗｉｌｌ 2 ａｍｏｒｔｉｚａｔｉｏｎ Ｒｅｖｅｒｓｉｎｇ ｔｈｅ 2,346 2,346 13,452 11,106 ｅｎｔｒｙ ｏｆ ｏｖｅｒ－ｐｒｏｖｉｄｅｄ ｒｅｓｅｒｖｅ ｆｏｒ ｒｅａｌ ｅｓｔａｔｅ ｉｎｖｅｓｔｍｅｎｔ ｄｅｐｒｅｃｉａｔｉｏｎ Ａｍｏｒｔｉｚａｔｉｏｎ (2,410) 2,410 - 2,410 ｏｆ ｉｎｉｔｉａｌ ｅｘｐｅｎｄｉｔｕｒｅ Ｎｏｔ (2,854) － (2,854) － ｃｏｎｓｏｌｉｄａｔｉｎｇ ｔｈｅ ｄｅｐｒｅｃｉａｔｉｏｎ ｒｅｓｅｒｖｅ ｏｆ ｓｕｂｓｉｄｉａｒｉｅｓ Ｕｎｄｅｒ－ｐｒｏｖｉｄｅｄ (505) (1,281) (1,786) (1,281) ｒｅｓｅｒｖｅ ｆｏｒ ｔｈｅ ｌｏｓｓｅｓ ｏｆ ｓｕｂｓｉｄｉａｒｉｅｓ ｉｎ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒ Ｐｒｏｐｒｉｅｔａｒｙ 788 (6,050) (5,262) (6,050) ｔｅｃｈｎｏｌｏｇｙ ａｍｏｒｔｉｚａｔｉｏｎ Ｂａｄ ｄｅｂｔ 5,075 (5,075) － (5,075) ｒｅｓｅｒｖｅ Ｏｔｈｅｒｓ （１０） － － １５ Ｒｅｓｔａｔｅｄ 28,199 15,748 307,195 279,563 ｐｕｒｓｕａｎｔ ｔｏ ＩＡＳ ＩＩＩ． Ｃｈａｎｇｅｓ ｏｆ Ｓｈａｒｅ Ｃａｐｉｔａｌ ａｎｄ Ｓｈａｒｅｈｏｌｄｅｒｓ （Ｉ） Ｓｔａｔｅｍｅｎｔ ｏｆ ｔｈｅ ｃｈａｎｇｅｓ ｏｆ ｓｈａｒｅ ｃａｐｉｔａｌ （ｉｎ ｓｈａｒｅｓ） Ｂｅｆｏｒｅ Ｉｎｃｒｅａｓｅ／ｄｅｃｒｅａｓｅ ｔｈｉｓ ｔｉｍｅ Ａｆｔｅｒ ｃｈａｎｇｅ （＋ ， － ） ｃｈａｎｇｅ 3 Ｓｈａｒｅ Ｂｏ Ｃａｐｉｔ Ｎ Ｏ Ｓｕｂ ａｌｌｏｔ ｎｕ ａｌｉｚａ ｅ ｔ － ｍｅｎｔ ｓ ｔｉｏｎ ｗ ｈ ｔｏｔ ｓｈ ｏｆ ｓ ｅ ａｌ ａｒ ｃｏｍｍｏ ｈ ｒ ｅｓ ｎ ａ ｓ ｒｅｓｅｒ ｒ ｖｅ ｅ ｆｕｎｄ ｓ （Ⅰ） Ｎｏｎ－ｎｅｇｏｔｉａｂｌｅ Ｓｈａｒｅｓ １．Ｐｒｏｍｏｔｅｒｓ ｓｈａｒｅｓ 108，240， 108，240， 000 000 Ｏｆ ｗｈｉｃｈ： Ｓｔａｔｅ－ｏｗｎｅｄ ｓｈａｒｅｓ 108，240， 108，240， 000 000 Ｄｏｍｅｓｔｉｃ ｃｏｒｐｏｒａｔｅ ｓｈａｒｅｓ Ｆｏｒｅｉｇｎ ｃｏｒｐｏｒａｔｅ ｓｈａｒｅｓ Ｏｔｈｅｒｓ ２． Ｒａｉｓｅｄ ｃｏｒｐｏｒａｔｅ ｓｈａｒｅｓ ３． Ｓｔａｆｆ ｓｈａｒｅｓ ４． Ｐｒｅｆｅｒｒｅｄ ｓｈａｒｅｓ ｏｒ ｏｔｈｅｒｓ Ｔｏｔａｌ ｎｏｎ－ｎｅｇｏｔｉａｂｌｅ 108，240， 108，240， 000 000 ｓｈａｒｅｓ Ⅱ． Ｎｅｇｏｔｉａｂｌｅ Ｓｈａｒｅｓ １． ＲＭＢ ｃｏｍｍｏｎ ｓｈａｒｅｓ 22，176， 22，176， 000 000 ２． Ｄｏｍｅｓｔｉｃａｌｌｙ ｌｉｓｔｅｄ 33，000， 33，000， 000 000 ｆｏｒｅｉｇｎ ｉｎｖｅｓｔｍｅｎｔ ｓｈａｒｅｓ ３． Ｏｖｅｒｓｅａｓ ｌｉｓｔｅｄ ｆｏｒｅｉｇｎ ｉｎｖｅｓｔｍｅｎｔ ｓｈａｒｅｓ ４． Ｏｔｈｅｒｓ Ｔｏｔａｌ ｎｅｇｏｔｉａｂｌｅ ｓｈａｒｅｓ 55，176， 55，176， 000 000 Ⅲ． Ｔｏｔａｌ ｓｈａｒｅｓ 163，416， 163，416， 000 000 （ＩＩ） Ｓｈａｒｅｈｏｌｄｅｒｓ １． Ａｓ ｏｆ Ｄｅｃｅｍｂｅｒ ３１， ２００１， ｔｈｅ Ｃｏｍｐａｎｙ ｈａｄ ２０，１４６ ｓｈａｒｅｈｏｌｄｅｒｓ ｉｎ ｔｏｔａｌ ｉｎｃｌｕｄｉｎｇ ｏｎｅ ｓｈａｒｅｈｏｌｄｅｒ ｏｆ ｓｔａｔｅ－ｏｗｎｅｄ ｓｈａｒｅｓ， １１，６０９ ｓｈａｒｅｈｏｌｄｅｒｓ ｏｆ Ａ ｓｈａｒｅｓ ａｎｄ ８，５３６ ｓｈａｒｅｈｏｌｄｅｒｓ ｏｆ Ｂ ｓｈａｒｅｓ． 4 ２． Ｐａｒｔｉｃｕｌａｒｓ ｏｆ ｔｈｅ ｔｏｐ ｔｅｎ ｓｈａｒｅｈｏｌｄｅｒｓ ａｓ ｏｆ Ｄｅｃｅｍｂｅｒ ３１， ２００１ Ｎａｍｅ ｏｆ ｓｈａｒｅｈｏｌｄｅｒｓ Ｔｙｐｅ ｏｆ ｓｈａｒｅｓ Ｎｏ． ｏｆ ｓｈａｒｅｓ Ｐｒｏｐｏｒｔｉｏｎ ｏｆ ｔｏｔａｌ ｓｈａｒｅｓ（％） １． Ｓｈｅｎｚｈｅｎ Ｉｎｖｅｓｔｍｅｎｔ Ｍａｎａｇｅｍｅｎｔ Ｃｏ． Ｓｔａｔｅ－ｏｗｎｅｄ ｓｈａｒｅｓ １０８，２４０，０００ ６６．２４ ２． Ｔｏｐ Ｆｏｒｍ Ｃｈｉｎａ Ｈｏｌｄｉｎｇｓ Ｌｔｄ． Ｎ／Ａ Ｂ 938，000 0.57 ３． Ｖｉｃｔｏｒ Ｏｎｗａｒｄ Ｐｒｉｎｔｉｎｇ ＆ Ｄｙｅｉｎｇ （ＨＫ） Ｃｏ．， Ｌｔｄ． Ｂ 370，000 0.22 ４． Ｚｈｏｕ Ｘｉａｎｇ Ａ 327，601 0.20 ５． Ｄａｉ Ｔｏｎｇｇｅｎ Ａ 313，094 0.19 ６． Ｗｅｎ Ｈａｉｇｅｎ Ｂ 211，200 0.13 ７． Ｔｕｐｏ Ｔｒａｄｅ Ｃｏ．， Ｌｔｄ． Ｂ 210，200 0.12 ８． Ｌｉ Ｆａｎ Ａ 193，500 0.12 ９． Ｚｈａｎｇ Ｙａｎ Ａ 187，060 0.11 １０． Ｊｉｎ Ｐｉｎｇｇｕｉ Ａ 186，362 0.11 Ａｍｏｎｇ ｔｈｅ ａｂｏｖｅ ｓｈａｒｅｈｏｌｄｅｒｓ， ｔｈｅ ｏｎｅ ｈｏｌｄｉｎｇ ｓｈａｒｅｓ ｏ ｎ ｂｅｈａｌｆ ｏｆ ｔｈｅ ｓｔａｔｅ ｉｓ Ｓｈｅｎｚｈｅｎ Ｉｎｖｅｓｔｍｅｎｔ Ｍａｎａｇｅｍｅｎｔ Ｃｏ． Ｎｏ．２， ３， ６ ａｎｄ ７ ｓｈａｒｅｈｏｌｄｅｒｓ ａｒｅ ｔｈｅ ｏｎｅｓ ｈｏｌｄｉｎｇ ｆｏｒｅｉｇｎ ｉｎｖｅｓｔｍｅｎｔ ｓｈａｒｅｓ． Ａｍｏｎｇ ｔｈｅ ａｂｏｖｅ ｓｈａｒｅｓ， ｅｘｃｅｐｔ ｔｈａｔ １０８，２４０，０００ ｓｔａｔｅ－ｏｗｎｅｄ ｓｈａｒｅｓ ａｒｅ ｎｏｎ－ｎｅｇｏｔｉａｂｌｅ ｓｈａｒｅｓ， ａｌｌ ｏｔｈｅｒ ｓｈａｒｅｓ ａｒｅ ｎｅｇｏｔｉａｂｌｅ ｓｈａｒｅｓ． ３． Ｔｈｅ ｓｈａｒｅｓ ｈｅｌｄ ｂｙ Ｓｈｅｎｚｈｅｎ Ｉｎｖｅｓｔｍｅｎｔ Ｍａｎａｇｅｍｅｎｔ Ｃｏ． ａｃｃｏｕｎｔ ｆｏｒ ６６．２４％ ｏｆ ｔｈｅ ｔｏｔａｌ ｓｈａｒｅ ｃａｐｉｔａｌ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｉｔｓ ｌｅｇａｌ ｒｅｐｒｅｓｅｎｔａｔｉｖｅ： Ｌｉ Ｈｅｉｈｕ． Ｄａｔｅ ｏｆ ｅｓｔａｂｌｉｓｈｍｅｎｔ： Ｆｅｂｒｕａｒｙ １０， １９８８． Ｍａｉｎ ｂｕｓｉｎｅｓｓ： Ｍａｎａｇｅｍｅｎｔ ａｎｄ ｓｕｐｅｒｖｉｓｉｏｎ ｏｆ ｓｔａｔｅ－ｏｗｎｅｄ ａｓｓｅｔｓ， ｆｉｎａｎｃｅ ａｎｄ ｐｒｏｐｅｒｔｙ ｒｉｇｈｔ ｒｅｐｒｅｓｅｎｔａｔｉｖｅｓ， ｓｈａｒｅ ｐａｒｔｉｃｉｐａｔｉｏｎ ｉｎ ｖａｒｉｏｕｓ ｍｕｎｉｃｉｐａｌ ｅｎｔｅｒｐｒｉｓｅｓ ａｎｄ ｔｕｒｎｏｖｅｒ ｉｎｖｅｓｔｍｅｎｔ， ｐｒｏｖｉｓｉｏｎ ｏｆ ｌｏａｎ ｇｕａｒａｎｔｅｅ， ｌｅｖｙ ｏｆ ｏｃｃｕｐａｔｉｏｎ ｆｅｅ ｏｆ ａｆｔｅｒ－ｔａｘ ｐｒｏｆｉｔ ａｎｄ ａｓｓｅｔｓ ｏｆ ｓｔａｔｅ－ｒｕｎ ｅｎｔｅｒｐｒｉｓｅｓ， ｏｔｈｅｒ ｂｕｓｉｎｅｓｓｅｓ 5 ａｕｔｈｏｒｉｚｅｄ ｂｙ ｔｈｅ ｍｕｎｉｃｉｐａｌ ｇｏｖｅｒｎｍｅｎｔ． Ｒｅｇｉｓｔｅｒｅｄ ｃａｐｉｔａｌ： ＲＭＢ ２ ｂｉｌｌｉｏｎ． Ｉｔ ｉｓ ａ ｓｏｌｅｌｙ ｓｔａｔｅ－ｏｗｎｅｄ ｃｏｍｐａｎｙ ｉｎ Ｓｈｅｎｚｈｅｎ． ４． Ｔｈｅ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｄｉｄ ｎｏｔ ｃｈａｎｇｅ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． Ｅｘｃｅｐｔ Ｓｈｅｎｚｈｅｎ Ｉｎｖｅｓｔｍｅｎｔ Ｍａｎａｇｅｍｅｎｔ Ｃｏ．， ｔｈｅ Ｃｏｍｐａｎｙ ｈａｓ ｎｏ ｏｔｈｅｒ ｌｅｇａｌ ｐｅｒｓｏｎ ｓｈａｒｅｈｏｌｄｅｒｓ ｈｏｌｄｉｎｇ ｍｏｒｅ ｔｈａｎ １０％ （ｉｎｃｌｕｄｉｎｇ １０％） ｓｈａｒｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． ＩＶ． Ｄｉｒｅｃｔｏｒｓ， ｓｕｐｅｒｖｉｓｏｒｓ， ｓｅｎｉｏｒ ｅｘｅｃｕｔｉｖｅｓ ａｎｄ ｅｍｐｌｏｙｅｅｓ （Ｉ） Ｂａｓｉｃ ｉｎｆｏｒｍａｔｉｏｎ Ｎａｍｅ Ｓｅｘ Ａｇ Ｐｏｓｉｔｉｏｎ Ｓｔａｒｔｉｎｇ ａｎｄ Ｎｏ． ｏｆ Ｎｏ． ｏｆ ｅ ｅｎｄｉｎｇ ｄａｔｅ ｓｈａｒｅｓ ｓｈａｒｅｓ ｏｆ ｔｅｒｍ ｏｆ ｈｅｌｄ ａｔ ｈｅｌｄ ａｔ ｏｆｆｉｃｅ ｙｅａｒ ｙｅａｒ ｂｅｇｉｎｎ ｅｎｄ ｉｎｇ Ｇｕａｎ Ｔｏｎｇｋｅ Ｍａｌｅ ５４ Ｃｈａｉｒｍａｎ ｏｆ ｔｈｅ 1999.7.1-2002. 37200 37200 Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ 6.30 Ｌｉｕ Ｊｕｎｈｏｕ Ｍａｌｅ ４３ Ｄｉｒｅｃｔｏｒ ＆ ＧＭ 1999.7.1-2002. ０ ０ 6.30 Ｓｕｎ Ｆｕｒｅｎ Ｍａｌｅ ５８ Ｄｉｒｅｃｔｏｒ 1999.7.1-2002. ９３６０ ９３６０ 6.30 Ｌｉ Ｍａｌｅ ４９ Ｄｉｒｅｃｔｏｒ ＆ Ｄｅｐｕｔｙ 1999.7.1-2002. 30000 30000 Ｊｉｎｇｑｉａｎｇ ＧＭ 6.30 Ｈｕａ Ｙｏｎｇｓｈｉ Ｍａｌｅ ７０ Ｉｎｄｅｐｅｎｄｅｎｔ 1999.7.1-2002. 3060 3060 ｄｉｒｅｃｔｏｒ 6.30 Ｌｕ Ｙｉｔｏｎｇ Ｍａｌｅ ５８ Ｃｈａｉｒｍａｎ ｏｆ 1999.7.1-2002. ０ ０ Ｓｕｐｅｒｖｉｓｏｒｙ 6.30 Ｃｏｍｍｉｔｔｅｅ Ｇｕｏ Ｊｉａｎｈｕａ Ｆｅｍａｌ ４６ Ｓｕｐｅｒｖｉｓｏｒ 1999.7.1-2002. ０ ０ ｅ 6.30 Ｚｈｏｕ Ｄａｄｏｎｇ Ｍａｌｅ ５５ Ｄｅｐｕｔｙ ＧＭ 1999.7.1-2002. ０ ０ 6.30 Ｚｈｕ Ｄａｈｕａ Ｍａｌｅ ３４ Ｆｉｎａｎｃｉａｌ ０ ０ ｃｏｎｔｒｏｌｌｅｒ （ＩＩ） Ａｎｎｕａｌ ｒｅｍｕｎｅｒａｔｉｏｎ Ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ， ｔｈｅ ａｎｎｕａｌ ｒｅｍｕｎｅｒａｔｉｏｎ ｏｆ ｔｈｅ ｄｉｒｅｃｔｏｒｓ， ｓｕｐｅｒｖｉｓｏｒｓ ａｎｄ ｓｅｎｉｏｒ ｅｘｅｃｕｔｉｖｅｓ ｒｅｃｅｉｖｉｎｇ ｓａｌａｒｙ ｆｒｏｍ ｔｈｅ Ｃｏｍｐａｎｙ ｓｈａｌｌ ｂｅ ｐａｉｄ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ Ｐｒｏｖｉｓｉｏｎａｌ Ｒｅｇｕｌａｔｉｏｎｓ ｏｎ ｔｈｅ Ａｎｎｕａｌ Ｓａｌａｒｙ Ｓｙｓｔｅｍ ｆｏｒ ｔｈｅ Ｏｐｅｒａｔｏｒｓ ｏｆ Ｓｈｅｎｚｈｅｎ Ｍｕｎｉｃｉｐａｌ Ｓｔａｔｅ－ｏｗｎｅｄ Ｅｎｔｅｒｐｒｉｓｅｓ ａｎｄ ｔｈｅ ｗａｇｅ ｍａｎａｇｅｍｅｎｔ ｓｙｓｔｅｍ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔｈｅ ｔｏｔａｌ ｎｕｍｂｅｒ ｏｆ ｔｈｅ ｃｕｒｒｅｎｔ ｄｉｒｅｃｔｏｒｓ， ｓｕｐｅｒｖｉｓｏｒｓ ａｎｄ ｓｅｎｉｏｒ ｅｘｅｃｕｔｉｖｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ９． Ｓｅｖｅｎ ｏｆ ｔｈｅｍ ｒｅｃｅｉｖｅ ｓａｌａｒｙ ｆｒｏｍ ｔｈｅ Ｃｏｍｐａｎｙ， ｗｈｏｓｅ ｔｏｔａｌ ａｎｎｕａｌ ｓａｌａｒｙ ｉｓ ＲＭＢ １．２８３ ｍｉｌｌｉｏｎ． Ａｎｎｕａｌ ｒｅｍｕｎｅｒａｔｉｏｎ ｏｆ ＲＭＢ ０．２１Ｍ－０．２３Ｍ： ２ ｐｅｒｓｏｎｓ； 6 Ａｎｎｕａｌ ｒｅｍｕｎｅｒａｔｉｏｎ ｏｆ ＲＭＢ ０．１７ Ｍ－０．２ Ｍ： ３ ｐｅｒｓｏｎｓ； Ａｎｎｕａｌ ｒｅｍｕｎｅｒａｔｉｏｎ ｏｆ ＲＭＢ ０．１４ Ｍ－０．１６ Ｍ： ２ ｐｅｒｓｏｎｓ． Ｔｈｅ ｔｏｔａｌ ｒｅｍｕｎｅｒａｔｉｏｎ ｏｆ ｔｈｅ ｔｏｐ ｔｈｒｅｅ ｄｉｒｅｃｔｏｒｓ ｒｅｃｅｉｖｉｎｇ ｔｈｅ ｒｅｍｕｎｅｒａｔｉｏｎ ｏｆ ｔｈｅ ｈｉｇｈｅｓｔ ａｍｏｕｎｔ ｉｓ ＲＭＢ ０．６１５ ｍｉｌｌｉｏｎ． Ｔｈｅ ｒｅｍｕｎｅｒａｔｉｏｎ ｏｆ ｏｎｅ ｓｅｎｉｏｒ ｅｘｅｃｕｔｉｖｅ ｉｓ ＲＭＢ ０．１５９ ｍｉｌｌｉｏｎ． Ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ， ｔｈｅ ｉｎｄｅｐｅｎｄｅｎｔ ｄｉｒｅｃｔｏｒ ｄｉｄ ｎｏｔ ｒｅｃｅｉｖｅ ｒｅｍｕｎｅｒａｔｉｏｎ ｆｒｏｍ ｔｈｅ Ｃｏｍｐａｎｙ． Ｍｒ． Ｚｈｕ Ｄａｈｕａ （ｃａｎｄｉｄａｔｅ ｆｏｒ ｄｉｒｅｃｔｏｒ）， ｔｈｅ ｆｉｎａｎｃｉａｌ ｃｏｎｔｒｏｌｌｅｒ， ｄｉｄ ｎｏｔ ｒｅｃｅｉｖｅ ｒｅｍｕｎｅｒａｔｉｏｎ ｆｒｏｍ ｔｈｅ Ｃｏｍｐａｎｙ． Ｈｅ ｒｅｃｅｉｖｅｓ ｒｅｍｕｎｅｒａｔｉｏｎ ｆｒｏｍ Ｓｈｅｎｚｈｅｎ Ｉｎｖｅｓｔｍｅｎｔ Ｍａｎａｇｅｍｅｎｔ Ｃｏ．， ｔｈｅ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． （ＩＩＩ） Ｔｈｅ ｒｅｓｉｇｎａｔｉｏｎ， ａｐｐｏｉｎｔｍｅｎｔ ａｎｄ ｒｅｍｏｖａｌ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ Ｔｈｅ ｄｉｒｅｃｔｏｒｓ， ｓｕｐｅｒｖｉｓｏｒｓ ａｎｄ ｓｅｎｉｏｒ ｅｘｅｃｕｔｉｖｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｎｅｉｔｈｅｒ ｌｅｆｔ ｔｈｅｉｒ ｐｏｓｔｓ ｎｏｒ ｗｅｒｅ ｄｉｓｍｉｓｓｅｄ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． Ｓｈｅｎｚｈｅｎ Ｉｎｖｅｓｔｍｅｎｔ Ｍａｎａｇｅｍｅｎｔ Ｃｏ．， ｔｈｅ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ， ａｐｐｏｉｎｔｅｄ Ｍｒ． Ｚｈｕ Ｄａｈｕａ ａｓ ｔｈｅ ｆｉｎａｎｃｉａｌ ｃｏｎｔｒｏｌｌｅｒ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． Ｖ． Ｔｈｅ Ｃｏｎｔｒｏｌ Ｓｔｒｕｃｔｕｒｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ （Ｉ） Ｔｈｅ ｐａｒｔｉｃｕｌａｒｓ ｏｆ ｔｈｅ ｃｏｎｔｒｏｌ ｓｔｒｕｃｔｕｒｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ Ｔｈｅ Ｃｏｍｐａｎｙ ｆｏｒｍｕｌａｔｅｄ ｓｔａｎｄａｒｄｉｚｅｄ ｍａｎａｇｅｍｅｎｔ ｓｙｓｔｅｍｓ ｉｎｃｌｕｄｉｎｇ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ， ｔｈｅ Ｒｕｌｅｓ ｏｆ Ｐｒｏｃｅｄｕｒｅ ｏｆ ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ， ｔｈｅ Ｒｕｌｅｓ ｏｆ Ｐｒｏｃｅｄｕｒｅ ｏｆ ｔｈｅ Ｓｕｐｅｒｖｉｓｏｒ Ｃｏｍｍｉｔｔｅｅ， Ｄｅｔａｉｌｅｄ Ｗｏｒｋ Ｒｕｌｅｓ ｏｆ Ｍａｎａｇｅｒｓ， Ｉｎｔｅｒｎａｌ Ｃｏｎｔｒｏｌ Ｓｙｓｔｅｍ， Ｉｎｆｏｒｍａｔｉｏｎ Ｄｉｓｃｌｏｓｕｒｅ Ｍａｎａｇｅｍｅｎｔ Ｓｙｓｔｅｍ ａｎｄ ｔｈｅ Ｒｕｌｅｓ ｏｆ Ｐｒｏｃｅｄｕｒｅ ｏｆ Ｓｈａｒｅｈｏｌｄｅｒｓ Ｇｅｎｅｒａｌ Ｍｅｅｔｉｎｇ ｓｔｒｃｉｔｌｙ ａｃｃｏｒｄｉｎｇ ｔｏ ｒｅｌｅｖａｎｔ ｌａｗｓ ａｎｄ ｒｅｇｕｌａｔｉｏｎｓ ａｎｄ ｔｈｅ ｓｔａｎｄａｒｄｉｚｅｄ ｄｏｃｕｍｅｎｔｓ ｉｓｓｕｅｄ ｂｙ ＣＳＲＣ ｉｎ ｒｅｓｐｅｃｔ ｏｆ ｔｈｅ ｃｏｎｔｒｏｌ ｏｆ ｌｉｓｔｅｄ ｃｏｍｐａｎｉｅｓ ａｎｄ ｃｏｎｓｔａｎｔｌｙ ｉｍｐｒｏｖｅｄ ｉｔｓ ｌｅｇｌ ｐｅｒｓｏｎ ｃｏｎｔｒｏｌ ｓｔｒｕｃｔｕｒｅ． Ｔｈｅ ｐａｒｔｉｃｕｌａｒｓ ａｒｅ ａｓ ｆｏｌｌｏｗｓ： １． Ｓｈａｒｅｈｏｌｄｅｒｓ ａｎｄ ｓｈａｒｅｈｏｌｄｅｒｓ ｇｅｎｅｒａｌ ｍｅｅｔｉｎｇ： Ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ａｂｌｅ ｔｏ ｅｎｓｕｒｅ ａｌｌ ｓｈａｒｅｈｏｌｄｅｒｓ， ｅｓｐｅｃｉａｌｌｙ ｍｅｄｉｕｍ ａｎｄ ｓｍａｌｌ ｓ ｈａｒｅｈｏｌｄｅｒｓ， ｅｎｊｏｙ ｅｑｕａｌ ｐｏｓｉｔｉｏｎ ａｎｄ ｃａｎ ｆｕｌｌｙ ｅｘｅｒｃｉｓｅ ｔｈｅｉｒ ｏｗｎ ｒｉｇｈｔｓ． Ｔｈｅ Ｃｏｍｐａｎｙ ｈａｓ ｆｏｒｍｕｌａｔｅｄ ｔｈｅ ｒｕｌｅｓ ｏｆ ｐｒｏｃｅｄｕｒｅ ｏｆ ｔｈｅ ｓｈａｒｅｈｏｌｄｅｒｓ ｇｅｎｅｒａｌ ｍｅｅｔｉｎｇ ａｎｄ ｉｓ ａｂｌｅ ｔｏ ｃｏｎｖｅｎｅ ａｎｄ ｈｏｌｄ ｓｈａｒｅｈｏｌｄｅｒｓ ｇｅｎｅｒａｌ ｍｅｅｔｉｎｇ ａｓ ｒｅｑｕｉｒｅｄ ｂｙ ｔｈｅ Ｓｔａｎｄａｒｄ Ｏｐｉｎｉｏｎｓ ｏｎ ｔｈｅ Ｓｈａｒｅｈｏｌｄｅｒｓ Ｇｅｎｅｒａｌ Ｍｅｅｔｉｎｇ ｏｆ ｔｈｅ Ｌｉｓｔｅｄ Ｃｏｍｐａｎｉｅｓ ｔｏ ｅｎｓｕｒｅ ｔｈｅ ｒｉｇｈｔ ｅｘｅｒｃｉｓｅ ｏｆ ｓｈａｒｅｈｏｌｄｅｒｓ ｒｉｇｈｔｓ． Ｔｈｅ Ｃｏｍｐａｎｙ ｈａｓ ｓｏｕｎｄ ａｎｄ ｅｆｆｅｃｔｉｖｅ ｉｎｔｅｒｎａｌ ｃｏｎｔｒｏｌ ｓｙｓｔｅｍ ｔｏ ｅｎｓｕｒｅ ｔｈｅ ｓａｆｅｔｙ ｏｆ ｉｔｓ ａｓｓｅｔｓ． Ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ａｍｅｎｄｉｎｇ ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｃｏｎｔｒｏｌ ｓｔａｎｄａｒｄｓ． ２． Ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ａｎｄ ｔｈｅ Ｃｏｍｐａｎｙ： Ｔｈｅ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ａ ｓｔａｔｅ－ｏｗｎｅｄ ａｓｓｅｔ ｍａｎａｇｅｍｅｎｔ ｃｏｍｐａｎｙ． Ｔｈｅ Ｃｏｍｐａｎｙ ｈａｓ ｂｅｅｎ ｓｅｐａｒａｔｅｄ ｆｒｏｍ ｉｔｓ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ｉ ｎ ｒｅｓｐｅｃｔ ｏｆ ｂｕｓｉｎｅｓｓ， 7 ｐｅｒｓｏｎｎｅｌ， ａｓｓｅｔｓ， ｓｔｒｕｃｔｕｒｅ ａｎｄ ｆｉｎａｎｃｅ． Ｔｈｅ ｂｏａｒｄ ｏｆ ｄｉｒｅｃｔｏｒｓ， ｓｕｐｅｒｖｉｓｏｒｙ ｃｏｍｍｉｔｔｅｅ ａｎｄ ｔｈｅ ｍａｎａｇｅｍｅｎｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ａｒｅ ａｂｌｅ ｔｏ ｏｐｅｒａｔｅ ｉｎｄｅｐｅｎｄｅｎｔｌｙ． Ａｓ ｔｈｅ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ｈｏｌｄｓ ６６．２４％ ｏｆ ｔｈｅ ｔｏｔａｌ ｓｈａｒｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ， ｉｔ ｉｓ ｔｈｅ ａｂｓｏｌｕｔｅ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ａｎｄ ｍａｙ ｅｘｅｒｔ ｉｎｆｌｕｅｎｃｅ ｏｎ ｔｈｅ ｉｍｐｏｒｔａｎｔ ｄｅｃｉｓｉｏｎｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｔｏ ｃｅｒｔａｉｎ ｅｘｔｅｎｔ ｔｈｒｏｕｇｈ ｔｈｅ ｓｈａｒｅｓ ｈｅｌｄ ｂｙ ｉｔ． Ｔｈｅｒｅｆｏｒｅ， ｔｈｅ Ｃｏｍｐａｎｙ ｗｉｌｌ ｆｕｒｔｈｅｒ ｓｔａｎｄａｒｄｉｚｅ ｉｔｓ ｏｐｅｒａｔｉｏｎ， ｄｉｓｃｌｏｓｅ ｉｎｆｏｒｍａｔｉｏｎ ｉｎ ｔｉｍｅｌｙ ａｎｄ ｓｔａｎｄａｒｄｉｚｅｄ ｍａｎｎｅｒ ａｎｄ ｄｅａｌ ｗｉｔｈ ｍａｔｔｅｒｓ ｓｔｒｉｃｔｌｙ ａｃｃｏｒｄｉｎｇ ｔｏ ｌａｗｓ， ｒｅｇｕｌａｔｉｏｎｓ ａｎｄ ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ， ｔａｋｅ ｔｈｅ ｏｐｉｎｉｏｎｓ ｏｆ ｍｅｄｉｕｍ ａｎｄ ｓｍａｌｌ ｓｈａｒｅｈｏｌｄｅｒｓ ｉｎｔｏ ｆｕｌｌ ａｃｃｏｕｎｔ， ｓｔｒｉｃｔｌｙ ｉｍｐｌｅｍｅｎｔ ｔｈｅ ｓｙｓｔｅｍ ｔｈａｔ ｒｅｌａｔｅｄ ｓｈａｒｅｈｏｌｄｅｒｓ ｓｈｏｕｌｄ ａｖｏｉｄ ｖｏｔｉｎｇ ｏｎ ｒｅｌａｔｅｄ ｔｒａｎｓａｃｔｉｏｎｓ ａｎｄ ｇｉｖｅ ｆｕｌｌ ｐｌａｙ ｔｏ ｔｈｅ ｆｕｎｃｔｉｏｎｓ ｏｆ ｔｈｅ ｉｎｄｅｐｅｎｄｅｎｔ ｄｉｒｅｃｔｏｒｓ． ３． Ｔｈｅ ｄｉｒｅｃｔｏｒｓ ａｎｄ ｔｈｅ ｂｏａｒｄ ｏｆ ｄｉｒｅｃｔｏｒｓ： Ｔｈｅ Ｃｏｍｐａｎｙ ｏｐｅｒａｔｅｓ ｉｎ ｓｔａｎｄａｒｄｉｚｅｄ ｍａｎｎｅｒ ｓｔｒｉｃｔｌｙ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ Ｃｏｍｐａｎｙ Ｌａｗ ａｎｄ ｒｅｌｅｖａｎｔ ｎａｔｉｏｎａｌ ｌａｗｓ ａｎｄ ｒ ｅｇｕｌａｔｉｏｎｓ， ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ａｎｄ ｔｈｅ Ｒｕｌｅｓ ｏｆ Ｐｒｏｃｅｄｕｒｅ ｏｆ ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ． Ｔｈｅ ｐｒｏｃｅｄｕｒｅ ｏｆ ｓｅｌｅｃｔｉｎｇ ａｎｄ ａｐｐｏｉｎｔｉｎｇ ｄｉｒｅｃｔｏｒｓ ａｎｄ ｔｈｅ ｐｅｒｓｏｎｎｅｌ ｃｏｍｐｌｙ ｗｉｔｈ ｔｈｅ ｐｒｏｖｉｓｉｏｎｓ ｏｆ ｌａｗｓ ａｎｄ ｒｅｇｕｌａｔｉｏｎｓ． Ａｌｌ ｄｉｒｅｃｔｏｒｓ ａｒｅ ａｂｌｅ ｐｅｒｆｏｒｍ ｔｈｅｉｒ ｄｕｔｉｅｓ ｓｅｒｉｏｕｓｌｙ ａｎｄ ｐｅｒｓｅｖｅｒｉｎｇｌｙ． Ｔｈｅ Ｃｏｍｐａｎｙ ｎｏｗ ｈａｓ ｏｎｅ ｉｎｄｅｐｅｎｄｅｎｔ ｄｉｒｅｃｔｏｒ ａｎｄ ｉｓ ｓｅｅｋｉｎｇ ｏｔｈｅｒ ｃａｎｄｉｄａｔｅｓ ｆｏｒ ｉｎｄｅｐｅｎｄｅｎｔ ｓｈａｒｅｈｏｌｄｅｒｓ． Ｔｈｅ Ｃｏｍｐａｎｙ ｈａｓ ｅｓｔａｂｌｉｓｈｅｄ ｉｎｄｅｐｅｎｄｅｎｔ ｄｉｒｅｃｔｏｒ ｓｙｓｔｅｍ ａｃｃｏｒｄｉｎｇ ｔｏ ｒｅｌｅｖａｎｔ ｒｅｇｕｌａｔｉｏｎｓ． ４． Ｓｕｐｅｒｖｉｓｏｒｓ ａｎｄ ｔｈｅ ｓｕｐｅｒｖｉｓｏｒｙ ｃｏｍｍｉｔｔｅｅ： Ｔａｋｉｎｇ ｔｈｅ ｓｐｉｒｉｔ ｏｆ ｂｅｉｎｇ ｒｅｓｐｏｎｓｉｂｌｅ ｆｏｒ ａｌｌ ｓｈａｒｅｈｏｌｄｅｒｓ， ｔｈｅ ｓｕｐｅｒｖｉｓｏｒｙ ｃｏｍｍｉｔｔｅｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ａｂｌｅ ｔｏ ｓｅｒｉｏｕｓｌｙ ｐｅｒｆｏｒｍ ｉｔｓ ｄｕｔｉｅｓ， ｓｕｐｅｒｖｉｓｅ ｔｈｅ ｌｅｇａｌｉｔｙ ａｎｄ ｒｅｇｕｌａｔｉｏｎ ｃｏｎｆｏｒｍｉｔｙ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｓ ｆｉｎａｎｃｅ ｏｆ ｔｈｅ ｄｕｔｙ ｐｅｒｆｏｒｍａｎｃｅ ｏｆ ｔｈｅ ｄｉｒｅｃｔｏｒｓ， ｍａｎａｇｅｒｓ ａｎｄ ｏｔｈｅｒ ｓｅｎｉｏｒ ｅｘｅｃｕｔｉｖｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ａｎｄ ｅｘｐｒｅｓｓ ｉｔｓ ｏｐｉｎｉｏｎｓ ｉｎｄｅｐｅｎｄｅｎｔｌｙ． ５． Ｐｅｒｆｏｒｍａｎｃｅ ａｐｐｒａｉｓａｌ ａｎｄ ｓｔｉｍｕｌａｔｉｏｎ ａｎｄ ｒｅｓｔｒｉｃｔｉｏｎ ｍｅｃｈａｎｉｓｍ： Ｔｈｅ Ｃｏｍｐａｎｙ ｓ ａｐｐｒａｉｓｅｓ ａｎｄ ｓｔｉｍｕｌａｔｅｓ ｉｔｓ ｓｅｎｉｏｒ ｅｘｅｃｕｔｉｖｅｓ ｍａｉｎｌｙ ａｃｃｏｒｄｉｎｇ ｔｏ Ａｎｎｕａｌ Ｓａｌａｒｙ Ｓｙｓｔｅｍ ｆｏｒ ｔｈｅ Ｏｐｅｒａｔｏｒｓ ｏｆ Ｓｈｅｎｚｈｅｎ Ｍｕｎｉｃｉｐａｌ Ｓｔａｔｅ－ｏｗｎｅｄ Ｅｎｔｅｒｐｒｉｓｅｓ ａｎｄ ｉｓ ａｃｔｉｖｅｌｙ ｓｅｔ ａｂｏｕｔ ｅｓｔａｂｌｉｓｈｉｎｇ ｆａｉｒ ａｎｄ ｔｒａｎｓｐａｒｅｎｔ ｐｅｒｆｏｒｍａｎｃｅ ａｐｐｒａｉｓａｌ ｓｔａｎｄａｒｄ ａｎｄ ｓｔｉｍｕｌａｔｉｏｎ ａｎｄ ｒｅｓｔｒｉｃｔｉｏｎ ｍｅｃｈａｎｉｓｍ ｆｏｒ ｄｉｒｅｃｔｏｒｓ， ｓｕｐｅｒｖｉｓｏｒｓ ａｎｄ ｅｘｅｃｕｔｉｖｅｓ． ６． Ｉｎｔｅｒｅｓｔｅｄ ｐａｒｔｉｅｓ： Ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ａｂｌｅ ｔｏ ｆｕｌｌｙ ｒｅｓｐｅｃｔ ａｎｄ ｓａｆｅｇｕａｒｄ ｔｈｅ ｌｅｇａｌ ｒｉｇｈｔｓ ａｎｄ ｉｎｔｅｒｅｓｔｓ ｏｆ ｔｈｅ ｉｎｔｅｒｅｓｔｅｄ ｐａｒｔｉｅｓ ｉｎｃｌｕｄｉｎｇ ｂａｎｋｓ， ｃｒｅｄｉｔｏｒｓ， ｅｍｐｌｏｙｅｅｓ ａｎｄ ｃｕｓｔｏｍｅｒｓ ａｎｄ ｃｏｎｄｕｃｔ ｂｕｓｉｎｅｓｓ ｉｎｔｅｒｃｏｕｒｓｅ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｐｒｉｎｃｉｐｌｅｓ ｏｆ ｍｕｔｕａｌ ｂｅｎｅｆｉｔ ａｎｄ ｇｏｏｄ ｆａｉｔｈ． 8 ７． Ｉｎｆｏｒｍａｔｉｏｎ ｄｉｓｃｌｏｓｕｒｅ ａｎｄ ｔｒａｎｓｐａｒｅｎｃｙ： Ｔｈｅ Ｃｏｍｐａｎｙ ｄｅｓｉｇｎａｔｅｓ ｔｈｅ ｓｅｃｒｅｔａｒｙ ｔｏ ｔｈｅ ｂｏａｒｄ ｏｆ ｄｉｒｅｃｔｏｒｓ ｔｏ ｂｅ ｒｅｓｐｏｎｓｉｂｌｅ ｆｏｒ ｉｎｆｏｒｍａｔｉｏｎ ｄｉｓｃｌｏｓｕｒｅ ａｎｄ ｒｅｃｅｐｔｉｏｎ ｏｆ ｓｈａｒｅｈｏｌｄｅｒｓ ａｎｄ ｉｎｖｅｓｔｏｒｓ ａｎｄ ｓｅｔ ｕｐ ｓｐｅｃｉａｌ ｅｍａｉｌ ｍａｉｌｂｏｘ ｔｏ ｓｔｒｅｎｇｔｈｅｎ ｔｈｅ ｇｏｏｄ ｃｏｍｍｕｎｉｃａｔｉｏｎ ｂｅｔｗｅｅｎ ｔｈｅ Ｃｏｍｐａｎｙ ａｎｄ ｉｔｓ ｓｈａｒｅｈｏｌｄｅｒｓ． Ｔｈｅ Ｃｏｍｐａｎｙ ｈａｓ ｆｏｒｍｕｌａｔｅｄ Ｉｎｆｏｒｍａｔｉｏｎ Ｄｉｓｃｌｏｓｕｒｅ Ｍａｎａｇｅｍｅｎｔ Ｓｙｓｔｅｍ ｔｏ ｅｎｓｕｒｅ ｔｒｕｅ， ａｃｃｕｒａｔｅ， ｃｏｍｐｌｅｔｅ ａｎｄ ｔｉｍｅｌｙ ｄｉｓｃｌｏｓｕｒｅ ｏｆ ｒｅｌｅｖａｎｔ ｉｎｆｏｒｍａｔｉｏｎ ａｎｄ ｉｓ ａｂｌｅ ｔｏ ｋｅｅｐ ｓｅｃｒｅｔｓ ｂｅｆｏｒｅ ｉｎｆｏｒｍａｔｉｏｎ ｄｉｓｃｌｏｓｒｅ． （ＩＩ） Ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ， ｔｈｅ ｉｎｄｅｐｅｎｄｅｎｔ ｄｉｒｅｃｔｏｒ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ａｂｌｅ ｔｏ ｐｅｒｆｏｒｍ ｈｉｓ ｄｕｔｉｅｓ ｓｅｒｉｏｕｓｌｙ， ａｔｔｅｎｄ ｂｏａｒｄ ｍｅｅｔｉｎｇｓ ａｎｄ ｓｈａｒｅｈｏｌｄｅｒｓ ｇｅｎｅｒａｌ ｍｅｅｔｉｎｇ ａｎｄ ｅｘｐｒｅｓｓ ｉｎｄｅｐｅｎｄｅｎｔ ｏｐｉｎｉｏｎｓ ｏｎ ｔｈｅ ｉｎｖｅｓｔｍｅｎｔ ｄｅｃｉｓｉｏｎ， ｏｐｅｒａｔｉｏｎ ｍａｎａｇｅｍｅｎｔ ａｎｄ ｓｔａｎｄａｒｄｉｚｅｄ ｏｐｅｒａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． （ＩＩＩ） Ｔｈｅ Ｃｏｍｐａｎｙ ｈａｓ ｂｅｅｎ ｓｅｐａｒａｔｅｄ ｆｒｏｍ ｉｔｓ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ｉｎ ｒｅｓｐｅｃｔ ｏｆ ｂｕｓｉｎｅｓｓ， ｐｅｒｓｏｎｎｅｌ， ａｓｓｅｔｓ， ｓｔｒｕｃｔｕｒｅ ａｎｄ ｆｉｎａｎｃｅ． Ｔｈｅ Ｃｏｍｐａｎｙ ｈａｓ ｉｎｄｅｐｅｎｄｅｎｔ ａｎｄ ｃｏｍｐｌｅｔｅ ｂｕｓｉｎｅｓｓ ａｎｄ ｔｈｅ ａｂｉｌｉｔｙ ｏｆ ｉｎｄｅｐｅｎｄｅｎｔ ｏｐｅｒａｔｉｏｎ． ＶＩ． Ｂｒｉｅｆ Ｉｎｔｒｏｄｕｃｔｉｏｎ ｏｆ Ｓｈａｒｅｈｏｌｄｅｒｓ Ｇｅｎｅｒａｌ Ｍｅｅｔｉｎｇ （Ｉ） Ｔｈｅ ｎｏｔｉｃｅ ｏｆ ｈｏｌｄｉｎｇ ２０００ Ｓｈａｒｅｈｏｌｄｅｒｓ Ｇｅｎｅｒａｌ Ｍｅｅｔｉｎｇ ｗａｓ ｐｕｂｌｉｓｈｅｄ ｏｎ Ｓｅｃｕｒｉｔｉｅｓ Ｔｉｍｅｓ ａｎｄ Ｈｏｎｇ Ｋｏｎｇ Ｃｏｍｍｅｒｃｉａｌ Ｄａｉｌｙ ｏｎ Ｍａｙ ２９， ２００１． Ｔｈｅ ｍｅｅｔｉｎｇ ｗａｓ ｈｅｌｄ ａｔ ｔｈｅ ｍｅｅｔｉｎｇ ｒｏｏｍ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ａｔ ６／Ｆ ｏｆ Ｓｈｅｎｆａｎｇ Ｂｕｉｌｄｉｎｇ ｏｎ Ｊｕｎｅ ２９， ２００１． ９ ｓｈａｒｅｈｏｌｄｅｒｓ ａｎｄ ｔｈｅｉｒ ｐｒｏｘｉｅｓ ａｔｔｅｎｄｅｄ ｔｈｅ ｍｅｅｔｉｎｇ， ｈｏｌｄｉｎｇ １０８，３３３，７２０ ｓｈａｒｅｓ ｔｈａｔ ａｃｃｏｕｎｔｅｄ ｆｏｒ ６６．２９％ ｏｆ ｔｈｅ ｔｏｔａｌ ｓｈａｒｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． ７ ｓｈａｒｅｈｏｌｄｅｒｓ ｏｆ Ａ Ｓｈａｒｅｓ ａｔｔｅｎｄｅｄ ｔｈｅ ｍｅｅｔｉｎｇ， ｒｅｐｒｅｓｅｎｔｉｎｇ １０８，３２２，２２０ ｓｈａｒｅｓ ｔｈａｔ ａｃｃｏｕｎｔｅｄ ｆｏｒ ６６．２８６ ％ ｏｆ ｔｈｅ ｔｏｔａｌ ｓｈａｒｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． ２ ｓｈａｒｅｈｏｌｄｅｒｓ ｏｆ Ｂ Ｓｈａｒｅｓ ａｔｔｅｎｄｅｄ ｔｈｅ ｍｅｅｔｉｎｇ， ｒｅｐｒｅｓｅｎｔｉｎｇ １１，５００ ｓｈａｒｅｓ ｔｈａｔ ａｃｃｏｕｎｔｅｄ ｆｏｒ ０．００１％ ｏｆ ｔｈｅ ｔｏｔａｌ ｓｈａｒｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔｈｅ ｈｏｌｄｉｎｇ ｏｆ ｔｈｅ ｍｅｅｔｉｎｇ ｃｏｍｐｌｉｅｄ ｗｉｔｈ ｔｈｅ ｐｒｏｖｉｓｉｏｎｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ Ｌａｗ ａｎｄ ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． （ＩＩ） ２０００ Ｓｈａｒｅｈｏｌｄｅｒｓ Ｇｅｎｅｒａｌ Ｍｅｅｔｉｎｇ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｅｘａｍｉｎｅｄ ａｎｄ ａｄｏｐｔｅｄ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｒｅｓｏｌｕｔｉｏｎｓ： １．２０００ Ｗｏｒｋｉｎｇ Ｒｅｐｏｒｔ ｏｆ ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ ２．２０００ Ｗｏｒｋｉｎｇ Ｒｅｐｏｒｔ ｏｆ ｔｈｅ Ｓｕｐｅｒｖｉｓｏｒｙ Ｃｏｍｍｉｔｔｅｅ ３．２０００ Ｆｉｎａｌ Ａｃｃｏｕｎｔｉｎｇ Ｒｅｐｏｒｔ ４． ２０００ Ｐｒｏｆｉｔ Ｄｉｓｔｒｉｂｕｔｉｏｎ Ｐｒｅｐｌａｎ： Ｔｈｅ ｎｅｔ ｐｒｏｆｉｔ ｅａｒｎｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ２０００ ｗａｓ ＲＭＢ ２２．７１７ ｍｉｌｌｉｏｎ． Ａｓ ｔｈｅ ｒｅｔａｉｎｅｄ ｐｒｏｆｉｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｗａｓ ＲＭＢ – ９４．２４９ ｍｉｌｌｉｏｎ， ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ， ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ ｔｈｅ ｐｒｏｖｉｓｉｏｎｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ Ｌａｗ ａｎｄ ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ， ｄｅｃｉｄｅｄ ｔｈａｔ 9 ｔｈｅ ｎｅｔ ｐｒｏｆｉｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ２０００ ｗｏｕｌｄ ｎｏｔ ｂｅ ａｌｌｏｃａｔｅｄ ｔｏ ｓｔａｔｕｔｏｒｙ ｃｏｍｍｏｎ ｒｅｓｅｒｖｅ ｆｕｎｄ ａｎｄ ｓｔａｔｕｔｏｒｙ ｐｕｂｌｉｃ ｗｅｌｆａｒｅ ｆｕｎｄ ａｎｄ ｗｏｕｌｄ ｂｅ ｆｕｌｌｙ ｕｔｉｌｉｚｅｄ ｔｏ ｍａｋｅ ｕｐ ｔｈｅ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒｓ ａｎｄ ｔｈａｔ ｉｔ ｗｏｕｌｄ ｎｏｔ ｃａｐｉｔａｌｉｚｅ ａｎｙ ｃｏｍｍｏｎ ｒｅｓｅｒｖｅ ｆｕｎｄ． ５． Ｔｈｅ ｐｒｏｐｏｓａｌ ｆｏｒ ｔｈｅ ａｍｅｎｄｍｅｎｔ ｏｆ ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ６． Ｐｒｏｐｏｓａｌ ｆｏｒ ｔｈｅ Ｅｎｇａｇｅｍｅｎｔ ｏｆ Ａｕｄｉｔｉｎｇ Ｏｒｇａｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔｈｅ ａｂｏｖｅ ｒｅｓｏｌｕｔｉｏｎｓ ｏｆ ｔｈｅ ｍｅｅｔｉｎｇ ｗｅｒｅ ｐｕｂｌｉｓｈｅｄ ｏｎ Ｓｅｃｕｒｉｔｉｅｓ Ｔｉｍｅｓ ａｎｄ Ｈｏｎｇ Ｋｏｎｇ Ｃｏｍｍｅｒｃｉａｌ Ｄａｉｌｙ ｏｎ Ｊｕｎｅ ３０， ２００１． ＶＩＩ． Ｒｅｐｏｒｔ ｏｆ ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ （Ｉ） Ｏｐｅｒａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ １． Ｔｈｅ Ｓｃｏｐｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｓ ｋｅｙ ｂｕｓｉｎｅｓｓ ａｎｄ ｉｔｓ ｏｐｅｒａｔｉｏｎ： Ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ｍａｉｎｌｙ ｅｎｇａｇｅｄ ｉｎ ｔｈｅ ｐｒｏｄｕｃｔｉｏｎ ａｎｄ ｔｒａｄｉｎｇ ｏｆ ｔｅｘｔｉｌｅ ｐｒｏｄｕｃｔｓ， ｇａｒｍｅｎｔｓ， ｅｌｅｃｔｒｏｎｉｃ ｐｒｏｄｕｃｔｓ ａｎｄ ｉｎ ｔｈｅ ｌｅａｓｅ ａｎｄ ｍａｎａｇｅｍｅｎｔ ｏｆ ｐｒｏｐｅｒｔｉｅｓ． Ｔｈｅ ｉｎｃｏｍｅ ａｎｄ ｎｅｔ ｐｒｏｆｉｔ ｅａｒｎｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ２００１ ｗｅｒｅ ｒｅｓｐｅｃｔｉｖｅｌｙ ＲＭＢ ３４２．６０６ ｍｉｌｌｉｏｎ ａｎｄ ＲＭＢ ２８．１９９ ｍｉｌｌｉｏｎ Ｉｎｄｕｓｔｒｙ： Ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ， ｔｈｅ ｗｈｏｌｌｙ－ｏｗｎｅｄ ａｎｄ ｓｈａｒｅ－ｈｅｌｄ ｉｎｄｕｓｔｒｉａｌ ｓｕｂｓｉｄｉａｒｉｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｅａｒｎｅｄ ｉｎｃｏｍｅ ｏｆ ＲＭＢ ６３．２６ ｍｉｌｌｉｏｎ， ｔｏｔａｌ ｐｒｏｆｉｔ ｏｆ ＲＭＢ –４．１３ ｍｉｌｌｉｏｎ ａｎｄ ｉｎｃｏｍｅ ｏｆ ＲＭＢ –１．８８ ｍｉｌｌｉｏｎ ｆｒｏｍ ｅｑｕｉｔｙ ｉｎｖｅｓｔｍｅｎｔ， ｗｈｉｃｈ ｗａｓ ｍａｉｎｌｙ ｃａｕｓｅｄ ｂｙ ｔｈｅ ｌｏｓｓ ｏｆ ｔｈｅ ｓｈａｒｅ－ｈｅｌｄ ｓｕｂｓｉｄｉａｒｉｅｓ． Ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ， ｆｏｒ ｇｉｖｉｎｇ ｆｕｌｌ ｐｌａｙ ｔｏ ｉｔｓ ａｄｖａｎｔａｇｅｓ ｏｆ ｅｓｔａｂｌｉｓｈｉｎｇ ｆａｃｔｏｒｉｅｓ ａｔ ｏｖｅｒｓｅａｓ ｐｌａｃｅｓ ａｎｄ ｅｎｌａｒｇｉｎｇ ｔｈｅ ｓｃａｌｅ ａｎｄ ｓｔｒｅｎｇｔｈ ｏｆ ｉｔｓ ｏｖｅｒｓｅａｓ ｇａｒｍｅｎｔ ｂｒａｎｃｈｅｓ， ｔｈｅ Ｃｏｍｐａｎｙ ｔｉｍｅｌｙ ｍａｄｅ ｕｓｅ ｏｆ ｔｈｅ ｍａｒｋｅｔ ｏｐｐｏｒｔｕｎｉｔｉｅｓ ｏｆ ｉｎｔｅｒｎａｔｉｏｎａｌ ｇａｒｍｅｎｔ ｔｒａｄｅ ａｎｄ ｐｏｌｉｃｙ ｃｏｎｄｉｔｉｏｎｓ ａｎｄ ｅｓｔａｂｌｉｓｈｅｄ ｔｈｅ ｔｈｉｒｄ ｏｖｅｒｓｅａｓ ｇａｒｍｅｎｔ ｐｒｏｃｅｓｓｉｎｇ ｆａｃｔｏｒｙ ｉｎ Ｊｏｒｄａｎ （ｔｈｅ ｆｉｒｓｔ ｔｗｏ ｉｎ Ｓａｉｂａｎ ａｎｄ Ｃａｍｂｏｄｉａ ｒｅｓｐｅｃｔｉｖｅｌｙ）， ｉ．ｅ．， Ｙｅｈｕｉ （Ｊｏｒｄａｎ） Ｇａｒｍｅｎｔ Ｃｏ．， Ｌｔｄ． Ｔｈｅ ｃｏｍｐａｎｙ ｗａｓ ｐｕｔ ｉｎｔｏ ｔｒｉａｌ ｐｒｏｄｕｃｔｉｏｎ ｉｎ Ｏｃｔｏｂｅｒ ２００１． Ｔｈｅ Ｃｏｍｐａｎｙ ｉｎｃｒｅａｓｅｄ ｔｈｅ ｓｈａｒｅ ｃａｐｉｔａｌ ｏｆ Ｊｉａｎｇｘｉ Ｘｕａｎｌｉ Ｅｍｂｒｏｉｄｅｒｙ Ｌｉｎｅ Ｃｏ．， Ｌｔｄ． ａｎｄ ｓｕｐｐｏｒｔｅｄ ｉｔ ｔｏ ｅｎｌａｒｇｅ ｔｈｅ ｋｎｉｔｗｅａｒ ｐｒｏｊｅｃｔ． Ｔｈｅ ｓｈａｒｅ ｃａｐｉｔａｌ ｏｆ ｔｈｅ ｃｏｍｐａｎｙ ｉｎｃｒｅａｓｅｄ ｆｒｏｍ ＲＭＢ １０ ｍｉｌｌｉｏｎ ｔｏ ＲＭＢ ２０ ｍｉｌｌｉｏｎ． Ｉｔ ｅａｒｎｅｄ ｐｒｏｆｉｔ ｏｆ ＲＭＢ ２．９２ ｍｉｌｌｉｏｎ． Ｕｎｄｅｒ ｔｈｅ ｃｉｒｃｕｍｓｔａｎｃｅ ｏｆ ｒｅｄｕｃｅｄ ｉｎｔｅｒｎａｔｉｏｎａｌ ｍａｒｋｅｔ ｄｅｍａｎｄ， ｏｖｅｒｓｅａｓ ｇａｒｍｅｎｔ ｓｕｂｓｉｄｉａｒｉｅｓ ｐｒｏｄｕｃｅｄ ａｎｄ ｐｒｏｃｅｓｓｅｄ ４．５１ ｍｉｌｌｉｏｎ ｐｉｅｃｅｓ ｏｆ ｇａｒｍｅｎｔｓ ａｎｄ ｅａｒｎｅｄ ｉｎｃｏｍｅ ｏｆ ＵＳＤ １０ ｍｉｌｌｉｏｎ． Ｔｒａｄｉｎｇ： Ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ， ｔｈｅ ｉｎｃｏｍｅ ｆｒｏｍ ｔｒａｄｉｎｇ ｗａｓ ＲＭＢ ２５２．１４ ｍｉｌｌｉｏｎ． Ｔｈｅ ｔｏｔａｌ ｐｒｏｆｉｔ ｆｒｏｍ ｔｒａｄｉｎｇ ｗａｓ ＲＭＢ ６．９５ ｍｉｌｌｉｏｎ， ａｎ ｉｎｃｒｅａｓｅ ｏｆ １．７０ ｍｉｌｌｉｏｎ ｏｖｅｒ ｔｈｅ ｓａｍｅ ｐｅｒｉｏｄ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒ． Ｐｒｏｐｅｒｔｙ ｌｅａｓｅ ａｎｄ ｈｏｔｅｌ ｂｕｓｉｎｅｓｓ： Ｔｈｅ Ｃｏｍｐａｎｙ ｏｗｎｓ Ｓｈｅｎｆａｎｇ Ｂｕｉｌｄｉｎｇ ａｎｄ ｏｔｈｅｒ ｐｒｏｐｅｒｔｉｅｓ ｉｎｃｌｕｄｉｎｇ ｃｏｍｍｅｒｃｉａｌ ｂｅｒｔｈｓ， ｆａｃｔｏｒｙ ｂｕｉｌｄｉｎｇｓ， ｏｆｆｉｃｅ ｂｕｉｌｄｉｎｇｓ ａｎｄ ｗａｒｅｈｏｕｓｅｓ， ｅｔｃ． ｆｏｒ ｌｅａｓｅ． Ｉｎ ２００１， ｔｈｅ ａｖｅｒａｇｅ ｌｅａｓｅ ｒａｔｅ 10 ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｓ ｐｒｏｐｅｒｔｉｅｓ ｉｎｃｒｅａｓｅｄ ｂｙ ２３％ ｏｖｅｒ ｔｈｅ ｓａｍｅ ｐｅｒｉｏｄ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒ． Ｔｈｅ Ｃｏｍｐａｎｙ ｓ ｉｎｃｏｍｅ ｆｒｏｍ ｐｒｏｐｅｒｔｙ ｌｅａｓｅ ｉｎｃｒｅａｓｅｄ ｂｙ ＲＭＢ １．３４ ｍｉｌｌｉｏｎ ｏｖｅｒ ｔｈｅ ｓａｍｅ ｐｅｒｉｏｄ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒ． Ｔｈｅ Ｃｏｍｐａｎｙ ｅａｒｎｅｄ ｉｎｃｏｍｅ ｏｆ ＲＭＢ ４３．９６ ｍｉｌｌｉｏｎ ｉｎ ｔｏｔａｌ ｆｒｏｍ ｐｒｏｐｅｒｔｙ ｌｅａｓｅ， ｗａｒｅｈｏｕｓｉｎｇ ａｎｄ ｈｏｔｅｌ ｂｕｓｉｎｅｓｓ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． ２． Ｍａｉｎ ｓｕｐｐｌｉｅｒｓ ａｎｄ ｃｕｓｔｏｍｅｒｓ Ｔｈｅ ｔｏｔａｌ ａｍｏｕｎｔ ｏｆ ｐｕｒｃｈａｓｅ ｆｒｏｍ ｔｈｅ ｔｏｐ ｆｉｖｅ ｓｕｐｐｌｉｅｒｓ ａｃｃｏｕｎｔｅｄ ｆｏｒ ２６．４％ ｏｆ ｔｈｅ ｔｏｔａｌ ｐｕｒｃｈａｓｅ ａｍｏｕｎｔ ｏｆ ｔｈｅ ｙｅａｒ． Ｔｈｅ ｔｏｔａｌ ａｍｏｕｎｔ ｏｆ ｓａｌｅｓ ｔｏ ｔｈｅ ｔｏｐ ｆｉｖｅ ｃｕｓｔｏｍｅｒｓ ａｃｃｏｕｎｔｅｄ ｆｏｒ ４１．１％ ｏｆ ｔｈｅ ｔｏｔａｌ ｓａｌｅｓ ａｍｏｕｎｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． （ＩＩ） Ｔｈｅ ｉｎｖｅｓｔｍｅｎｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ １． Ｔｈｅ ｕｔｉｌｉｚａｔｉｏｎ ｏｆ ｒａｉｓｅｄ ｆｕｎｄｓ Ｔｈｅ Ｃｏｍｐａｎｙ ｄｉｄ ｎｏｔ ｒａｉｓｅ ｆｕｎｄｓ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． ２． Ｏｔｈｅｒ ｉｎｖｅｓｔｍｅｎｔ Ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ， ｔｈｅ Ｃｏｍｐａｎｙ ｉｎｖｅｓｔｅｄ ＲＭＢ ２．４５ ｍｉｌｌｉｏｎ ｉｎ Ｓｈｅｎｚｈｅｎ Ｓｈｅｎｆａｎｇ Ｉｍｐｏｒｔ ａｎｄ Ｅｘｐｏｒｔ Ｃｏ．， Ｌｔｄ．， ｗｈｉｃｈ ａｃｃｏｕｎｔｓ ｆｏｒ ４９％ ｏｆ ｔｈｅ ｅｑｕｉｔｙ ｏｆ ｔｈｅ ｉｎｖｅｓｔｅｄ ｃｏｍｐａｎｙ． Ｔｈｅ ｉｎｖｅｓｔｅｄ ｃｏｍｐａｎｙ ｉｓ ｍａｉｎｌｙ ｅｎｇａｇｅｄ ｉｎ ｉｍｐｏｒｔ ａｎｄ ｅｘｐｏｒｔ ｂｕｓｉｎｅｓｓ． （ＩＩＩ） Ｆｉｎａｎｃｉａｌ Ｓｔａｔｕｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ａｎｄ ｔｈｅ ａｎａｌｙｓｉｓ ｏｆ ｏｐｅｒａｔｉｎｇ ｒｅｓｕｌｔ Ａｓ ｏｆ Ｄｅｃｅｍｂｅｒ ３１， ２００１， ｔｈｅ ｔｏｔａｌ ａｓｓｅｔｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｗａｓ ＲＭＢ ６８２．３８ ｍｉｌｌｉｏｎ， ａ ｄｅｃｒｅａｓｅ ｏｆ １．５％ ｏｖｅｒ ｔｈｅ ｓａｍｅ ｐｅｒｉｏｄ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒ ｍａｉｎｌｙ ｄｕｅ ｔｏ ｄｅｂｔｓ． Ｔｈｅ ｎｏｎ－ｃｕｒｒｅｎｔ ｌｉａｂｉｌｉｔｉｅｓ ｗｅｒｅ ＲＭＢ ０．５ ｍｉｌｌｉｏｎ， ａ ｄｅｃｒｅａｓｅ ｏｆ ＲＭＢ ６．８７ ｍｉｌｌｉｏｎ ｏｖｅｒ ｔｈｅ ｓａｍｅ ｐｅｒｉｏｄ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒ ｍａｉｎｌｙ ｄｕｅ ｔｏ ｔｈｅ ｒｅｐａｙｍｅｎｔ ｏｆ ｂａｎｋ ｌｏａｎ． Ｉｔｓ ｓｈａｒｅｈｏｌｄｅｒｓ ｅｑｕｉｔｙ ｗａｓ ＲＭＢ ３０７．２０ ｍｉｌｌｉｏｎ， ａｎ ｉｎｃｒｅａｓｅ ｏｆ ９．８％ ｍａｉｎｌｙ ｄｕｅ ｔｏ ｔｈｅ ｉｎｃｒｅａｓｅ ｏｆ ｐｒｏｆｉｔ． Ｉｔｓ ｐｒｏｆｉｔ ｆｒｏｍ ｋｅｙ ｂｕｓｉｎｅｓｓ ｗａｓ ＲＭＢ ７．１７４ ｍｉｌｌｉｏｎ， ａ ｄｅｃｒｅａｓｅ ｏｆ ７．９％ ｏｖｅｒ ｔｈｅ ｓａｍｅ ｐｅｒｉｏｄ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒ ｍａｉｎｌｙ ｄｕｅ ｔｏ ｔｈｅ ｌｏｓｓｅｓ ｏｆ ｓｈａｒｅ－ｈｅｌｄ ｓｕｂｓｉｄｉａｒｉｅｓ． Ｉｔｓ ｎｅｔ ｐｒｏｆｉｔ ｗａｓ ＲＭＢ ２８．２０ ｍｉｌｌｉｏｎ， ａｎ ｉｎｃｒｅａｓｅ ｏｆ ７９．１％ ｏｖｅｒ ｔｈｅ ｓａｍｅ ｐｅｒｉｏｄ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒ ｍａｉｎｌｙ ｄｕｅ ｔｏ ｔｈｅ ｒｅｖｅｒｓｅｄ ｅｎｔｒｙ ｏｆ ｂａｄ ｄｅｂｔ ｒｅｓｅｒｖｅ ｏｆ ＲＭＢ ５．０７ ｍｉｌｌｉｏｎ ａｐａｒｔ ｆｒｏｍ ｔｈｅ ｉｍｐｒｏｖｅｍｅｎｔ ｏｆ ｔｈｅ ｏｐｅｒａｔｉｏｎ ｐｅｒｆｏｒｍａｎｃｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． （ＩＶ） Ｅｘｐｌａｎａｔｉｏｎ ｔｏ ｔｈｅ ａｕｄｉｔｏｒｓ ｒｅｐｏｒｔ Ｓｈｅｎｚｈｅｎ Ｐｅｎｇｃｈｅｎｇ Ｃｅｒｔｉｆｉｅｄ Ｐｕｂｌｉｃ Ａｃｃｏｕｎｔａｎｔｓ ａｎｄ Ｈｏ ａｎｄ Ｈｏ ＆ Ｃｏｍｐａｎｙ ｉｓｓｕｅｄ ｑｕａｌｉｆｉｅｄ ａｕｄｉｔｏｒｓ ｒｅｐｏｒｔ ｆｏｒ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ ｍａｄｅ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｅｘｐｌａｎａｔｉｏｎ： Ｉｎ ｔｈｅ ｏｐｉｎｉｏｎ ｏｆ ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ， ｔｈｅ ｃｒｅｄｉｔｏｒ ｂａｎｋｓ ｄｉｄ ｎｏｔ ｓｕｅ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ｒｅｓｐｅｃｔ ｏｆ ｔｈｅ ｍａｔｔｅｒ ｏｆ ｇｕａｒａｎｔｅｅｉｎｇ Ｌａｉｙｉｎｇｄａ Ｃｏ． Ｔｈｅｒｅｆｏｒｅ， ｔｈｅ ｇｕａｒａｎｔｅｅ ｈａｓ ｎｏｔ ｃｏｎｓｔｉｔｕｔｅｄ ｔｈｅ ｃｕｒｒｅｎｔ ｏｂｌｉｇａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｍｅａｎｗｈｉｌｅ， ｄｕｅ ｔｏ ｔｈｅ ｈｉｓｔｏｒｉｃａｌ ｒｅａｓｏｎ ｆｏｒ ｔｈｅ ｆｏｒｍａｔｉｏｎ ｏｆ ｔｈｉｓ ｇｕａｒａｎｔｅｅ， ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ｎｅｇｏｔｉａｔｉｎｇ ｗｉｔｈ ｉｔｓ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ａｎｄ ｃｒｅｄｉｔｏｒ ｂａｎｋｓ ｆｏｒ ｓｏｌｖｉｎｇ ｔｈｅ ｓａｉｄ ｍａｔｔｅｒ． Ｏｎｃｅ ａｎ 11 ａｇｒｅｅｍｅｎｔ ｉｓ ｒｅａｃｈｅｄ， ｔｈｅ Ｃｏｍｐａｎｙ ｍａｙ ｂｅ ｅｘｅｍｐｔｅｄ ｆｒｏｍ ｌｉａｂｉｌｉｔｉｅｓ． Ｕｎｄｅｒ ｓｕｃｈ ｃｉｒｃｕｍｓｔａｎｃｅｓ， ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ｕｎａｂｌｅ ｒｅａｓｏｎａｂｌｙ ｅｓｔｉｍａｔｅ ａｎｄ ａｃｃｕｒａｔｅｌｙ ｍｅａｓｕｒｅ ｔｈｅ ｊｏｉｎｔ ａｎｄ ｓｅｖｅｒａｌ ｌｉａｂｉｌｉｔｉｅｓ ｔｈａｔ ｉｔ ｍａｙ ｂｅａｒ． Ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｒｅｑｕｉｒｅｍｅｎｔｓ ｏｆ ａｃｃｏｕｎｔｉｎｇ ｓｔａｎｄａｒｄｓ， ｔｈｅ Ｃｏｍｐａｎｙ ｔｈｉｎｋｓ ｉｔ ｉｓ ａｐｐｒｏｐｒｉａｔｅ ｔｏ ｔａｋｅ ｓｕｃｈ ｍａｔｔｅｒ ａｓ ｏｎｅ ｏｆ ｃｏｎｔｉｎｇｅｎｃｉｅｓ． （Ｖ） Ｂｕｓｉｎｅｓｓ Ｄｅｖｅｌｏｐｍｅｎｔ Ｐｌａｎ ｆｏｒ ｔｈｅ Ｎｅｗ Ｙｅａｒ Ａｆｔｅｒ ａｄｊｕｓｔｍｅｎｔ ｆｏｒ ｓｅｖｅｒａｌ ｃｏｎｓｅｃｕｔｉｖｅ ｙｅａｒｓ， ｔｈｅ Ｃｏｍｐａｎｙ ｈａｓ ｈａｄ ｓｔｅａｄｙ ｅｃｏｎｏｍｉｃ ｂａｓｉｓ． Ｉｎ ２００２， ｔｈｅ Ｃｏｍｐａｎｙ ｗｉｌｌ ｃｏｎｃｅｎｔｒａｔｅ ｔｈｅ ｍａｉｎ ｆｉｎａｎｃｉａｌ ａｎｄ ｈｕｍａｎ ｒｅｓｏｕｒｃｅ ｔｏ ｑｕｉｃｋｅｎ ｔｈｅ ｐａｃｅ ｏｆ ｄｅｖｅｌｏｐｍｅｎｔ， ｄｅｖｅｌｏｐ ｎｅｗ ｅｎｔｅｒｐｒｉｓｅｓ ａｎｄ ｃｏｎｓｏｌｉｄａｔｅ ｉｔｓ ｋｅｙ ｂｕｓｉｎｅｓｓ， ｉ．ｅ．， ｔｅｘｔｉｌｅ ｉｎｄｕｓｔｒｙ ｔｈｒｏｕｇｈ ｅｎｔｅｒｐｒｉｓｅ ｉｎｔｅｇｒａｔｉｏｎ． Ｆｉｒｓｔ， ｗｉｔｈ ｉｔｓ ａｄｖａｎｔａｇｅｓ ｏｆ ｒｉｃｈ ｅｘｐｅｒｉｅｎｃｅ ｉｎ ｉｎｔｅｒｎａｔｉｏｎａｌ ｍａｒｋｅｔ ｏｐｅｒａｔｉｏｎ ａｃｃｕｍｕｌａｔｅｄ ｔｈｒｏｕｇｈ ｔｈｅ ｄｅｖｅｌｏｐｍｅｎｔ ｏｆ ｏｖｅｒｓｅａｓ ｅｎｔｅｒｐｒｉｓｅｓ ｉｎ ｐａｓｔ ｙｅａｒｓ， ｓｔｅａｄｙ ｉｎｔｅｒｎａｔｉｏｎａｌ ｃｕｓｔｏｍｅｒ ｎｅｔｗｏｒｋ ａｎｄ ｔｈｅ ｍａｎａｇｅｍｅｎｔ ｐｅｒｓｏｎｎｅｌ ｔｈａｔ ａｒｅ ｆａｍｉｌｉａｒ ｗｉｔｈ ｉｎｔｅｒｎａｔｉｏｎａｌ ｐｒａｃｔｉｃｅｓ， ｔｈｅ Ｃｏｍｐａｎｙ ｗｉｌｌ ｆｕｒｔｈｅｒ ｅｎｈａｎｃｅ ｔｈｅ ｏｖｅｒａｌｌ ｌｅｖｅｌ ｏｆ ｉｔｓ ｏｖｅｒｓｅａｓ ｇａｒｍｅｎｔ ｂｒａｎｃｈｅｓ ｉｎ ｒｅｓｐｅｃｔ ｏｆ ｃｏｌｌａｂｏｒａｔｉｏｎ ｉｎ ｔｈｅ ｉｎｔｅｒｎａｔｉｏｎａｌ ｍａｒｋｅｔ． Ｓｅｃｏｎｄ， ｉｔ ｗｉｌｌ ｑｕｉｃｋｅｎ ｔｈｅ ｒｅｎｏｖａｔｉｏｎ ｏｆ ｉｔｓ ｄｏｍｅｓｔｉｃ ｇａｒｍｅｎｔ ｅｎｔｅｒｐｒｉｓｅｓ ａｎｄ ｏｔｈｅｒ ｔｅｘｔｉｌｅ ｅｎｔｅｒｐｒｉｓｅｓ ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｐｒｏｄｕｃｔｉｏｎ ｒｅｑｕｉｒｅｍｅｎｔｓ ｏｆ ｉｎｔｅｒｎａｔｉｏｎａｌ ｐｒａｃｔｉｃｅｓ， ｉｎｔｅｇｒａｔｅ ｒｅｌａｔｅｄ ｅｎｔｅｒｐｒｉｓｅｓ ｔｏ ｒｅａｓｏｎａｂｌｙ ａｌｌｏｃａｔｅ ｒｅｓｏｕｒｃｅｓ ａｎｄ ｅｎｌａｒｇｅ ｐｒｏｄｕｃｔｉｏｎ ｓｃａｌｅ ａｓ ｆａｒ ａｓ ｐｏｓｓｉｂｌｅ ｓｏ ａｓ ｔｏ ｆｏｒｍ ｏｖｅｒｓｅａｓ ａｎｄ ｄｏｍｅｓｔｉｃ ｐｒｏｄｕｃｔｉｏｎ ｂａｓｅｓ ｔｈａｔ ｈａｖｅ ｄｉｆｆｅｒｅｎｔ ｃｈａｒａｃｔｅｒｉｓｔｉｃｓ ａｎｄ ｓａｔｉｓｆｙ ｔｈｅ ｄｅｍａｎｄｓ ｏｆ ｄｉｆｆｅｒｅｎｔ ｉｎｔｅｒｎａｔｉｏｎａｌ ｍａｒｋｅｔｓ ａｎｄ ｃｕｓｔｏｍｅｒｓ ａｎｄ ｍａｋｅ ｐｒｅｐａｒａｔｉｏｎｓ ｆｏｒ ｔｈｅ ｃｏｎｎｅｃｔｉｏｎ ｏｆ ｉｔｓ ｏｖｅｒｓｅａｓ ｇａｒｍｅｎｔ ｂｕｓｉｎｅｓｓ ａｎｄ ｉｔｓ ｄｏｍｅｓｔｉｃ ｅｎｔｅｒｐｒｉｓｅｓ． Ｔｈｉｒｄｌｙ， ｉｔ ｗｉｌｌ ｑｕｉｃｋｅｎ ｔｈｅ ｃｏｎｓｔｒｕｃｔｉｏｎ ｏｆ ｎｅｗ ｔｅｘｔｉｌｅ ｐｒｏｊｅｃｔｓ， ｄｅｖｅｌｏｐ ｎｅｗ ｃｈａｎｎｅｌｓ ｆｏｒ ｅｃｏｎｏｍｉｃ ｇｒｏｗｔｈ， ｆｏｒｍ ａ ｃｏｍｐｌｅｔｅ ｇａｒｍｅｎｔ ａｎｄ ｔｅｘｔｉｌｅ ｐｒｏｄｕｃｔ ｃｈａｉｎ ｗｉｔｈ ｇａｒｍｅｎｔ ｐｒｏｃｅｓｓｉｎｇ ａｓ ｔｈｅ ｌｅａｄｉｎｇ ｂｕｓｉｎｅｓｓ ａｎｄ ｃｏｖｅｒｉｎｇ ｓｐｉｎｎｉｎｇ， ｗｅａｖｉｎｇ ａｎｄ ｆａｂｒｉｃｓ， ｐｒｏｍｏｔｅ ｔｈｅ ｏｐｔｉｍｉｚｅｄ ａｌｌｏｃａｔｉｏｎ ｏｆ ｉｔｓ ｉｎｔｅｒｎａｌ ｒｅｓｏｕｒｃｅｓ ａｎｄ ｉｍｐｒｏｖｅ ｃｏｍｐｒｅｈｅｎｓｉｖｅ ｅｆｆｉｃｉｅｎｃｙ． Ｍｅａｎｗｈｉｌｅ， ｉｔ ｗｉｌｌ ｐｒｏｍｏｔｅ ｔｈｅ ｄｅｖｅｌｏｐｍｅｎｔ ｏｆ ｓｅｒｉｅｓ， ｆｕｎｃｔｉｏｎａｌ ａｎｄ ｈｉｇｈ－ｃｌａｓｓ ｐｒｏｄｕｃｔｓ ａｎｄ ｇｒａｄｕａｌｌｙ ｃｈａｎｇｅ ｆｒｏｍ ｐｒｏｃｅｓｓｉｎｇ ｔｏ ｂｒａｎｄ ｏｐｅｒａｔｉｏｎ ｂａｓｅｄ ｏｎ ｃｈａｒａｃｔｅｒｉｓｔｉｃ ｐｒｏｄｕｃｔｓ ｉｎｃｌｕｄｉｎｇ ｔｈｒｅａｄ ｐｒｏｄｕｃｔ ｗｉｔｈ ｈｉｇｈ ａｄｄｅｄ ｖａｌｕｅ ａｎｄ ｈｉｇｈ－ｃｌａｓｓ ｆｕｌｌ－ｆａｓｈｉｏｎｅｄ ｋｎｉｔｗｅａｒ． Ｔｈｅ Ｃｏｍｐａｎｙ ｗｉｌｌ ｆｏｃｕｓ ｏｎ ｔｈｅ ｆｏｌｌｏｗｉｎｇ ｗｏｒｋ ｉｎ ２００１： （１） Ｔｏ ｑｕｉｃｋｅｎ ｔｈｅ ｃｏｎｓｔｒｕｃｔｉｏｎ ｋｅｙ ｐｒｏｊｅｃｔｓ ｉｎｃｌｕｄｉｎｇ ｈｉｇｈ－ｃｌａｓｓ ｆｕｌｌ－ｆａｓｈｉｏｎｅｄ ｎｏ－ｓｅａｍ ｕｎｄｅｒｗｅａｒ ｐｒｏｊｅｃｔ， ｈｉｇｈ－ｃｌａｓｓ ｓｉｎｇｅｄ ｍｅｒｃｅｒｉｚｅｄ ｗｏｏｌ ｐｒｏｊｅｃｔ ａｎｄ ｔｈｅ ａｃｑｕｉｓｉｔｉｏｎ ｏｆ ｒｅｌｅｖａｎｔ ｔｅｘｔｉｌｅ ｐｒｏｊｅｃｔｓ ｔｏ ｓｔｒｅｎｇｔｈｅｎ ｉｔｓ ｋｅｙ ｂｕｓｉｎｅｓｓ ａｎｄ ｅｃｏｎｏｍｉｃ ｐｏｗｅｒ； （２） Ｔｏ ｃｏｎｔｉｎｕｅ ｔｏ ａｄｊｕｓｔ ｉｎｄｕｓｔｒｉａｌ ｓｔｒｕｃｔｕｒｅ ａｎｄ ｉｎｔｅｇｒａｔｅ ｐａｒｔ ｏｆ ｅｎｔｅｒｐｒｉｓｅｓ ｗｉｔｈ ｒｅｌａｔｅｄ ｂｕｓｉｎｅｓｓ ａｃｃｏｒｄｉｎｇ ｔｏ ｉｔｓ ｄｅｖｅｌｏｐｍｅｎｔ ｓｔｒａｔｅｇｙ， ｒｅａｓｏｎａｂｌｙ ａｌｌｏｃａｔｅ ｒｅｓｏｕｒｃｅｓ， ｅｎｌａｒｇｅ ｐｒｏｄｕｃｔｉｏｎ ｓｃａｌｅ ａｎｄ ｉｍｐｒｏｖｅ ｅｃｏｎｏｍｉｃ ｒｅｓｕｌｔｓ ａｓ ｓｏｏｎ ａｓ ｐｏｓｓｉｂｌｅ； （３） Ｔｏ ｃｏｎｔｉｎｕｅ ｔｏ ｓｔｒｅｎｇｔｈｅｎ ｔｈｅ ｍａｎａｇｅｍｅｎｔ ｏｆ ｏｖｅｒｓｅａｓ ｇａｒｍｅｎｔ ｅｎｔｅｒｐｒｉｓｅｓ ａｎｄ ｆｕｒｔｈｅｒ ｅｎｈａｎｃｅ ｔｈｅｉｒ ｐｒｏｄｕｃｔｉｏｎ ｃａｐａｃｉｔｙ ａｎｄ ｔｈｅ ａｂｉｌｉｔｙ ｏｆ Ｈｏｎｇ Ｋｏｎｇ Ｙｅｈｕｉ Ｃｏ． ｔｏ ｒｅｃｅｉｖｅ ｏｒｄｅｒｓ； （４） Ｔｏ ｑｕｉｃｋｅｎ ｔｈｅ 12 ｔｅｃｈｎｉｃａｌ ｒｅｎｏｖａｔｉｏｎ， ｅｎｈａｎｃｅ ｔｈｅ ｌｅｖｅｌ ｏｆ ｐｒｏｄｕｃｔｉｏｎ ａｎｄ ｔｅｃｈｎｏｌｏｇｙ ａｎｄ ｓｔｒｅｎｇｔｈｅｎ ｓｔａｎｄａｒｄｉｚｅｄ ｍａｎａｇｅｍｅｎｔ； （５） Ｔｏ ｃｏｎｔｉｎｕｅ ｔｏ ｅｆｆｅｃｔｉｖｅｌｙ ｒｅｃｒｕｉｔ ａｎｄ ｔｒａｉｎ ｃａｐａｂｌｅ ｐｅｒｓｏｎｎｅｌ； （６） Ｔｏ ｃｏｎｔｉｎｕｅ ｔｏ ｌｉｑｕｉｄａｔｅ ｃｒｅｄｉｔｏｒｓ ｒｉｇｈｔｓ ａｎｄ ｄｅｂｔｓ ａｎｄ ｅｎｈａｎｃｅ ｔｈｅ ｅｆｆｉｃｉｅｎｃｙ ｏｆ ａｓｓｅｔ ｏｐｅｒａｔｉｏｎ． （Ｖ） Ｔｈｅ Ｐｒｏｆｉｔ Ｄｉｓｔｒｉｂｕｔｉｏｎ Ｐｒｅｐｌａｎ Ａｓ ａｕｄｉｔｅｄ， ｔｈｅ ｎｅｔ ｐｒｏｆｉｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ２００１ ｗａｓ ＲＭＢ ２５，２０１，６６６．８８． Ａｓ ｔｈｅ ｒｅｔａｉｎｅｄ ｐｒｏｆｉｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｗａｓ ＲＭＢ – ７１，４１８，７３３．４６， ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ， ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ ｔｈｅ ｐｒｏｖｉｓｉｏｎｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ Ｌａｗ ａｎｄ ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ， ｄｅｃｉｄｅｄ ｔｈａｔ ｔｈｅ ｎｅｔ ｐｒｏｆｉｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ２００１， ｔｏｔａｌｉｎｇ ＲＭＢ ２５，２０１，６６６．８８， ｗｏｕｌｄ ｂｅ ｆｕｌｌｙ ｕｔｉｌｉｚｅｄ ｔｏ ｃｏｖｅｒ ｔｈｅ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒｓ ａｎｄ ｔｈａｔ ｉｔ ｗｏｕｌｄ ｕｓｅ ｓｕｒｐｌｕｓ ｃｏｍｍｏｎ ｒｅｓｅｒｖｅ ｆｕｎｄ ｏｆ ＲＭＢ ５，３２６，４５４．７７ ａｎｄ ｃａｐｉｔａｌ ｃｏｍｍｏｎ ｒｅｓｅｒｖｅ ｆｕｎｄ ｏｆ ＲＭＢ ４０，８９０，６１１．８１ ｔｏ ｃｏｖｅｒ ｔｈｅ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒｓ． Ｔｈｉｓ ｐｒｏｆｉｔ ｄｉｓｔｒｉｂｕｔｉｏｎ ｐｒｅｐｌａｎ ｉｓ ｔｏ ｂｅ ｓｕｂｍｉｔｔｅｄ ｔｏ ２００１ Ｓｈａｒｅｈｏｌｄｅｒｓ Ｇｅｎｅｒａｌ Ｍｅｅｔｉｎｇ ｆｏｒ ｅｘａｍｉｎａｔｉｏｎ． ＶＩＩＩ． Ｒｅｐｏｒｔ ｏｆ ｔｈｅ Ｓｕｐｅｒｖｉｓｏｒｙ Ｃｏｍｍｉｔｔｅｅ Ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ， ｔｈｅ Ｓｕｐｅｒｖｉｓｏｒｙ Ｃｏｍｍｉｔｔｅｅ ｄｕｌｙ ｐｅｒｆｏｒｍｅｄ ｔｈｅｉｒ ｄｕｔｉｅｓ ａｎｄ ｃｏｎｄｕｃｔｅｄ ｔｈｅ ｓｕｐｅｒｖｉｓｉｏｎ ｏｖｅｒ ｔｈｅ ｐｒｏｃｅｄｕｒｅ ｏｆ ｍａｋｉｎｇ ｉｍｐｏｒｔａｎｔ ｄｅｃｉｓｉｏｎｓ ａｎｄ ｔｈｅ ｍａｉｎ ｏｐｅｒａｔｉｎｇ ａｃｔｉｖｉｔｉｅｓ ａｎｄ ｆｉｎａｎｃｉａｌ ｓｔａｔｕｓ ａｎｄ ｆｕｎｄ ｕｔｉｌｉｚａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ａｃｃｏｒｄａｎｃｅ ｗｉｔｈ ｔｈｅ Ｃｏｍｐａｎｙ Ｌａｗ， ｔｈｅ Ｓｅｃｕｒｉｔｉｅｓ Ｌａｗ ａｎｄ ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． １． Ｔｈｅ ｍｅｅｔｉｎｇｓ ｏｆ ｔｈｅ Ｓｕｐｅｒｖｉｓｏｒｙ Ｃｏｍｍｉｔｔｅｅ： Ｔｈｅ Ｓｕｐｅｒｖｉｓｏｒｙ Ｃｏｍｍｉｔｔｅｅ ｈｅｌｄ ｔｗｏ ｍｅｅｔｉｎｇｓ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． Ｔｈｅ ｒｅｓｏｌｕｔｉｏｎｓ ｏｆ ｔｈｅ ｍｅｅｔｉｎｇ ｗｅｒｅ ｒｅｓｐｅｃｔｉｖｅｌｙ ｐｕｂｌｉｓｈｅｄ ｏｎ Ｓｅｃｕｒｉｔｉｅｓ Ｔｉｍｅｓ ａｎｄ Ｈｏｎｇ Ｋｏｎｇ Ｃｏｍｍｅｒｃｉａｌ Ｄａｉｌｙ ｏｎ Ａｐｒｉｌ １０ ａｎｄ Ａｕｇｕｓｔ １０， ２００１． ２． Ｔｈｅ ｏｐｅｒａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ａｃｃｏｒｄｉｎｇ ｔｏ ｌａｗ． Ｔｈｅ ｉｍｐｏｒｔａｎｔ ｄｅｃｉｓｉｏｎｓ ａｎｄ ｏｐｅｒａｔｉｎｇ ａｃｔｉｖｉｔｉｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ ｃｏｍｐｌｉｅｄ ｗｉｔｈ ｒｅｌｅｖａｎｔ ｐｏｌｉｃｉｅｓ， ｒｅｇｕｌａｔｉｏｎｓ ａｎｄ ｔｈｅ Ａｒｔｉｃｌｅｓ ｏｆ Ａｓｓｏｃｉａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔｈｅ Ｃｏｍｐａｎｙ ｈａｄ ｓｏｕｎｄ ｓｙｓｔｅｍ ａｎｄ ｃｏｎｄｕｃｔｅｄ ｓｔａｎｄａｒｄｉｚｅｄ ｏｐｅｒａｔｉｏｎ． Ｔｈｅ ｄｉｒｅｃｔｏｒｓ ａｎｄ ｍａｎａｇｅｒｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｈｏｎｅｓｔ ａｎｄ ｃｌｅａｎ ｉｎ ｐｅｒｆｏｒｍｉｎｇ ｔｈｅｉｒ ｄｕｔｉｅｓ， ｗｏｒｋｅｄ ｄｉｌｉｇｅｎｔｌｙ ａｎｄ ｐｒａｃｔｉｃｅｄ ｓｅｌｆ ｄｉｓｃｉｐｌｉｎｅ． Ｎｏ ａｃｔ ｔｈａｔ ｖｉｏｌａｔｅｄ ｌａｗｓ ａｎｄ ｒｅｇｕｌａｔｉｏｎｓ ａｎｄ ｈａｒｍｅｄ ｔｈｅ ｉｎｔｅｒｅｓｔｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ａｎｄ ｓｈａｒｅｈｏｌｄｅｒｓ ｗａｓ ｆｏｕｎｄ． ３． Ｔｈｅ ｆｉｎａｎｃｉａｌ ｓｔａｔｕｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔｈｅ Ｃｏｍｐａｎｙ ｓｔｒｉｃｔｌｙ ｉｍｐｌｅｍｅｎｔｅｄ ｆｉｎａｎｃｉａｌ ｓｙｓｔｅｍ， ｗｈｏｓｅ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ｗｅｒｅ ｃｏｍｐｌｅｔｅ ａｎｄ ｔｒｕｅ ａｎｄ ｃｏｍｐｌｉｅｄ ｗｉｔｈ ｒｅｇｕｌａｔｉｏｎｓ． Ｔｈｅ ｏｐｅｒａｔｉｎｇ ｒｅｓｕｌｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｗａｓ ｇｏｏｄ ａｎｄ ｔｈｅ ｆｕｎｄ ｔｕｒｎｏｖｅｒ ｗａｓ ｎｏｒｍａｌ． ４． Ｔｈｅ ａｕｄｉｔｏｒｓ ｒｅｐｏｒｔ ｉｓｓｕｅｄ ｂｙ Ｓｈｅｎｚｈｅｎ Ｐｅｎｇｃｈｅｎｇ Ｃｅｒｔｉｆｉｅｄ Ｐｕｂｌｉｃ Ａｃｃｏｕｎｔａｎｔｓ ａｎｄ Ｈｏ ａｎｄ Ｈｏ ＆ Ｃｏｍｐａｎｙ ｆｏｒ ２０００ ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｏｂｊｅｃｔｉｖｅｌｙ ａｎｄ ｔｒｕｌｙ ｒｅｆｌｅｃｔｅｄ ｔｈｅ ｆｉｎａｎｃｉａｌ ｓｔａｔｕｓ ａｎｄ ｏｐｅｒａｔｉｎｇ ｒｅｓｕｌｔｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． ５． Ｔｈｅ Ｃｏｍｐａｎｙ ｎｅｉｔｈｅｒ ｒａｉｓｅｄ ｆｕｎｄｓ ｎｏｒ ｗａｓ ｉｎｖｏｌｖｅｄ ｉｎ ａｃｑｕｉｓｉｔｉｏｎ ａｃｔｉｖｉｔｉｅｓ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． 13 ６． Ｎｏｔｅｓ ｔｏ ２００１ ａｕｄｉｔｏｒｓ ｒｅｐｏｒｔ： Ｔｈｅ ｆｏｒｍａｔｉｏｎ ｏｆ ｔｈｅ ｇｕａｒａｎｔｅｅ ｆｏｒ Ｌａｉｙｉｎｇｄａ Ｃｏ． ｈａｓ ｈｉｓｔｏｒｉｃａｌ ｒｅａｓｏｎｓ． Ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ａｃｔｉｖｅｌｙ ｎｅｇｏｔｉａｔｉｎｇ ｗｉｔｈ ｉｔｓ ｃｏｎｔｒｏｌｌｉｎｇ ｓｈａｒｅｈｏｌｄｅｒ ａｎｄ ｃｒｅｄｉｔｏｒ ｂａｎｋｓ ａｎｄ ｌｉｋｅｌｙ ｔｏ ｗｏｒｋ ｏｕｔ ｓｏｌｕｔｉｏｎ ｔｈａｔ ｗｉｌｌ ｍａｋｅ ｔｈｅ Ｃｏｍｐａｎｙ ａｖｏｉｄ ｂｅａｒｉｎｇ ｌｉａｂｉｌｉｔｉｅｓ． Ｔｈｅ ｎｅｇｏｔｉａｔｉｏｎ ｉｓ ｕｎｄｅｒ ｐｒｏｇｒｅｓｓ． Ｔｈｅ ｇｕａｒａｎｔｅｅ ｈａｓ ｎｏｔ ｃｏｎｓｔｉｔｕｔｅｄ ｔｈｅ ｃｕｒｒｅｎｔ ｏｂｌｉｇａｔｉｏｎ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔ ｈｅｒｅｆｏｒｅ， ｔｈｅ Ｓｕｐｅｒｖｉｓｏｒｙ Ｃｏｍｍｉｔｔｅｅ ｄｅｅｍｓ ｉｔ ａｐｐｒｏｐｒｉａｔｅ ｔｏ ｔａｋｅ ｔｈｅ ａｆｏｒｅｍｅｎｔｉｏｎｅｄ ｇｕａｒａｎｔｅｅ ａｓ ｏｎｅ ｏｆ ｃｏｎｔｉｎｇｅｎｃｉｅｓ． Ｔｈｅ Ｃｏｍｐａｎｙ ｓｈｏｕｌｄ ｑｕｉｃｋｅｎ ｔｈｅ ｎｅｇｏｔｉａｔｉｏｎ ｗｉｔｈ ｒｅｌａｔｅｄ ｐａｒｔｉｅｓ ａｎｄ ｔｒｙ ｔｏ ｗｏｒｋ ｏｕｔ ｓａｔｉｓｆａｃｔｏｒｙ ｓｏｌｕｔｉｏｎ． ＩＸ． Ｉｍｐｏｒｔａｎｔ Ｅｖｅｎｔｓ （Ｉ） Ｍａｔｅｒｉａｌ ｌａｗｓｕｉｔｓ ａｎｄ ａｒｂｉｔｒａｔｉｏｎ １． Ｔｈｅ Ｃｏｍｐａｎｙ ｗａｓ ｎｏｔ ｉｎｖｏｌｖｅｄ ｉｎ ａｎｙ ｍａｔｅｒｉａｌ ｌａｗｓｕｉｔｓ ａｎｄ ａｒｂｉｔｒａｔｉｏｎ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． ２． Ｏｔｈｅｒ ｌａｗｓｕｉｔｓ （１） Ｔｈｅ Ｃｏｍｐａｎｙ ｐａｉｄ ＲＭＢ １０，６００，２７２．７２ ｆｏｒ ｇｕａｒａｎｔｅｅｉｎｇ ｔｈｅ ｌｏａｎ ｏｆ Ｓｈｅｎｚｈｅｎ Ｇａｎｇｗｅｎ Ｅｌｅｃｔｒｏｎｉｃ Ｉｎｄｕｓｔｒｉａｌ Ｃｏ．， Ｌｔｄ． （Ｇａｎｇｗｅｎ Ｅｌｅｃｔｒｏｎｉｃｓ） ｉｎ １９９８． Ｐｕｒｓｕａｎｔ ｔｏ ｔｈｅ ｃｉｖｉｌ ｊｕｄｇｍｅｎｔ ｍａｄｅ ｂｙ Ｓｈｅｎｚｈｅｎ Ｉｎｔｅｒｍｅｄｉａｔｅ Ｐｅｏｐｌｅ ｓ Ｃｏｕｒｔ ｏｎ Ｄｅｃｅｍｂｅｒ ２０， ２００１ ｗｉｔｈ （２００１） ＳＺＦＪ－ＣＺ Ｎｏ． ３０４ Ｊｕｄｇｍｅｎｔ， ｔｈｅ Ｃｏｍｐａｎｙ ｗｏｎ ｔｈｅ ｃａｓｅ ｏｆ ｓｕｉｎｇ Ｇａｎｇｗｅｎ Ｅｌｅｃｔｒｏｎｉｃｓ ａｎｄ Ｃｈｉｎａ Ｈｕａｗｅｎ Ｄｅｖｅｌｏｐｍｅｎｔ Ｃｏｒｐｏｒａｔｉｏｎ （Ｈｕａｗｅｎ Ｃｏ．） ｉｎ ｒｅｓｐｅｃｔ ｏｆ ｔｈｅ ｄｉｓｐｕｔｅ ｏｖｅｒ ｃｏｍｐｅｎｓａｔｉｏｎ ｆｏｒ ｇｕａｒａｎｔｅｅ ｃｏｎｔｒａｃｔ． Ｔｈｅ ｃｏｕｒｔ ｊｕｄｇｅｄ Ｇａｎｇｗｅｎ Ｅｌｅｃｔｒｏｎｉｃｓ ｓｈｏｕｌｄ ｐａｙ ＲＭＢ １０，６００，２７２．７２ ａｎｄ ｉｎｔｅｒｅｓｔｓ ｔｏ ｔｈｅ Ｃｏｍｐａｎｙ ａｎｄ Ｈｕａｗｅｎ Ｃｏ． ｓｈｏｕｌｄ ｂｅａｒ ｊｏｉｎｔ ａｎｄ ｓｅｖｅｒａｌ ｌｉａｂｉｌｉｔｙ ｆｏｒ ｔｈｅ ｓｅｔｔｌｅｍｅｎｔ ｏｆ ｔｈｅ ｓａｉｄ ｄｅｂｔｓ． Ｔｈｅ ｈａｎｄｌｉｎｇ ｆｅｅ ｏｆ ｔｈｅ ｃａｓｅ ｉｎ ｔｈｅ ｆｉｒｓｔ ｉｎｓｔａｎｃｅ ｗａｓ ＲＭＢ ７１，４９９．６８． Ｔｈｅ Ｃｏｍｐａｎｙ ｓｈｏｕｌｄ ｂｅａｒ ＲＭＢ ４９９．６８ ａｎｄ Ｇａｎｇｗｅｎ Ｅｌｅｃｔｒｏｎｉｃｓ ｓｈｏｕｌｄ ｂｅａｒ ＲＭＢ ７１，０００． Ｈｕａｗｅｎ Ｃｏ． ｓｈｏｕｌｄ ｂｅａｒ ｊｏｉｎｔ ａｎｄ ｓｅｖｅｒａｌ ｌｉａｂｉｌｉｔｙ ｆｏｒ ｔｈｅ ｌａｗｓｕｉｔ ｆｅｅ ｔｏ ｂｅ ｂｏｒｎｅ ｂｙ Ｇａｎｇｗｅｎ Ｅｌｅｃｔｒｏｎｉｃｓ． Ｔｈｅ Ｃｏｍｐａｎｙ ｉｓ ａｃｔｉｖｅｌｙ ｃｏｌｌｅｃｔｉｎｇ ｔｈｉｓ ｐａｙｍｅｎｔ． （２） Ａｓ ｔｈｅ Ｃｏｍｐａｎｙ ｇｕａｒａｎｔｅｅｄ ｔｈｅ ｌｏａｎ ｏｆ Ｓｈｅｎｚｈｅｎ Ｌａｉｙｉｎｇｄａ Ｇｒｏｕｐ Ｃｏ．， Ｌｔｄ． ａｎｄ ｔｈｉｓ ｃｏｍｐａｎｙ ｗａｓ ｉｎ ｄｅｆａｕｌｔ ｏｎ ｔｈｅ ｌｏａｎ， ｔｈｅ Ｃｏｍｐａｎｙ ｂｏｒｅ ｊｏｉｎｔ ａｎｄ ｓｅｖｅｒａｌ ｌｉａｂｉｌｉｔｙ． Ｐｕｒｓｕａｎｔ ｔｏ ｔｈｅ ｊｕｄｇｍｅｎｔ ｏｆ Ｇｕａｎｇｚｈｏｕ Ｉｎｔｅｒｍｅｄｉａｔｅ Ｐｅｏｐｌｅ ｓ Ｃｏｕｒｔ ｗｉｔｈ （２００１） ＳＺＦＺＺ Ｎｏ． ２２４ Ｃｉｖｉｌ Ｊｕｄｇｍｅｎｔ， １０ ｍｉｌｌｉｏｎ ｃｏｒｐｏｒａｔｅ ｓｈａｒｅｓ ｏｆ Ｓｈｅｎｚｈｅｎ Ｖｉｃｔｏｒ Ｏｎｗａｒｄ Ｔｅｘｔｉｌｅ Ｉｎｄｕｓｔｒｉａｌ Ｃｏ．， Ｌｔｄ． ｈｅｌｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｗｅｒｅ ｔｏ ｂｅ ｆｒｏｚｅｎ． Ｃｈｉｎａ Ｓｅｃｕｒｉｔｉｅｓ Ｒｅｇｉｓｔｒａｔｉｏｎ ａｎｄ Ｓｅｔｔｌｅｍｅｎｔ Ｃｏ．， Ｌｔｄ． Ｓｈｅｎｚｈｅｎ Ｂｒａｎｃｈ Ｃｏｍｐａｎｙ ｆｒｏｚｅ ｔｈｅ ａｆｏｒｅｍｅｎｔｉｏｎｅｄ ｓｈａｒｅｓ ｏｎ Ｓｅｐｔｅｍｂｅｒ ５， ２００１ ａｎｄ ｄｅｆｒｏｚｅ ｔｈｅ ｓａｍｅ ｏｎ Ｍａｒｃｈ ５， ２００２． （３） Ｐｕｒｓｕａｎｔ ｔｏ ｔｈｅ ｃｉｖｉｌ ｊｕｄｇｍｅｎｔ ｍａｄｅ ｂｙ Ｓｈｅｎｚｈｅｎ Ｉｎｔｅｒｍｅｄｉａｔｅ Ｐｅｏｐｌｅ ｓ Ｃｏｕｒｔ ｏｎ Ｊａｎｕａｒｙ １０， ２００２ ｗｉｔｈ （２００１） ＳＺＦＺＳＺ Ｎｏ． ４３ Ｃｉｖｉｌ Ｊｕｄｇｍｅｎｔ， ｔｈｅ ｏｂｊｅｃｔｉｏｎ ｒａｉｓｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｔｏ ｔｈｅ （１９９９） ＳＺＦＺＺ Ｎｏ． １２－５１ Ｃｉｖｉｌ Ｊｕｄｇｍｅｎｔｓ ｔｈａｔ ｉｎｃｌｕｄｅｄ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ｔｈｅ ｐｅｒｓｏｎｓ ａｇａｉｎｓｔ ｗｈｏｍ ｔｈｅ ｊｕｄｇｍｅｎｔｓ ｗｅｒｅ 14 ｅｘｅｃｕｔｅｄ ｗａｓ ｅｓｔａｂｌｉｓｈｅｄ． Ｔｈｅ ｃｏｕｒｔ ｊｕｄｇｅｄ ｔｈａｔ ｔｈｅ Ｃｏｍｐａｎｙ ｓｈｏｕｌｄ ｂｅａｒ ｔｈｅ ｌｉａｂｉｌｉｔｙ ｆｏｒ ｄｅｂｔ ｓｅｔｔｌｅｍｅｎｔ ｗｉｔｈｉｎ ｔｈｅ ｓｃｏｐｅ ｏｆ ｔｈｅ ｐｒｏｐｅｒｔｉｅｓ ｒｅｃｅｉｖｅｄ ｆｒｏｍ Ｒｏｎｇｈｕｉ Ｃｏ． ｗｉｔｈ ｖａｌｕｅ ｏｆ ＲＭＢ ２６５，３７７．７７ ａｎｄ ｉｔｓ ｉｎｔｅｒｅｓｔｓ． Ｔｈｉｓ ｃａｓｅ ｗａｓ ｃｌｏｓｅｄ． （ＩＩ） Ａｃｑｕｉｓｉｔｉｏｎ， ｓａｌｅｓ ｏｆ ａｓｓｅｔｓ， ａｂｓｏｒｐｔｉｏｎ ａｎｄ ｍｅｒｇｅｒ Ｔｈｅ Ｃｏｍｐａｎｙ ｎｅｉｔｈｅｒ ａｃｑｕｉｒｅｄ ｎｏｒ ｓｏｌｄ ａｓｓｅｔｓ ｎｏｒ ｗａｓ ｉｎｖｏｌｖｅｄ ｉｎ ａｎｙ ａｂｓｏｒｐｔｉｏｎ ｏｒ ｍｅｒｇｅｒ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． （ＩＩＩ） Ｉｍｐｏｒｔａｎｔ ｒｅｌａｔｅｄ ｔｒａｎｓａｃｔｉｏｎｓ Ｔｈｅ Ｃｏｍｐａｎｙ ｗａｓ ｎｏｔ ｉｎｖｏｌｖｅｄ ｉｎ ａｎｙ ｍａｔｅｒｉａｌ ｒｅｌａｔｅｄ ｔｒａｎｓａｃｔｉｏｎ． Ｒｅｆｅｒ ｔｏ ｔｈｅ ｆｉｎａｎｃｉａｌ ｒｅｐｏｒｔ ｆｏｒ ｔｈｅ ｄｅｔａｉｌｓ ｏｆ ｏｔｈｅｒ ｒｅｌａｔｅｄ ｔｒａｎｓａｃｔｉｏｎｓ． （ＩＶ） Ｉｍｐｏｒｔａｎｔ ｃｏｎｔｒａｃｔｓ ａｎｄ ｔｈｅｉｒ ｐｅｒｆｏｒｍａｎｃｅ １． Ｔｒｕｓｔ， ｃｏｎｔｒａｃｔｉｎｇ ａｎｄ ｌｅａｓｅ （１） Ｔｈｅ Ｃｏｍｐａｎｙ ｗａｓ ｎｏｔ ｉｎｖｏｌｖｅｄ ｉｎ ａｎｙ ｍａｔｅｒｉａｌ ｔｒｕｓｔ， ｃｏｎｔｒａｃｔｉｎｇ ｏｒ ｌｅａｓｅ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． （２） Ｏｔｈｅｒ ｔｒｕｓｔ Ｔｈｅ Ｃｏｍｐａｎｙ ｓｉｇｎｅｄ ｅｑｕｉｔｙ ｔｒｕｓｔ ａｇｒｅｅｍｅｎｔ ｗｉｔｈ Ｃｈｉｎａ Ｐｕｓｈｉ Ｅｌｅｃｔｒｏｎｉｃｓ Ｃｏ．， Ｌｔｄ． ａｎｄ Ｊｉｕｊｉｕ Ｉｎｄｕｓｔｒｉａｌ Ｃｏ．， Ｌｔｄ． ｏｎ Ｄｅｃｅｍｂｅｒ １４， ２００１ ｔｏ ｔｒｕｓｔ ｔｈｅ １２，２７４，４９５ ｏｒｄｉｎａｒｙ ｓｈａｒｅｓ ｏｆ Ｊｉｎｔｉａｎ Ｉｎｄｕｓｔｒｉａｌ （Ｇｒｏｕｐ） Ｃｏ．， Ｌｔｄ． ｈｅｌｄ ｂｙ ｉｔ ｔｏ ｔｈｅ ａｆｏｒｅｍｅｎｔｉｏｎｅｄ ｔｗｏ ｃｏｍｐａｎｉｅｓ ｆｏｒ ｍａｎａｇｅｍｅｎｔ． Ｔｈｅ ｔｒｕｓｔ ｐｅｒｉｏｄ ｉｓ ｏｎｅ ｙｅａｒ ａｎｄ ｔｈｅ ｅｆｆｅｃｔｉｖｅ ｄａｔｅ ｗａｓ Ｊａｎｕａｒｙ １１， ２００２． ２． Ｉｍｐｏｒｔａｎｔ ｇｕａｒａｎｔｅｅ Ｔｈｅ Ｃｏｍｐａｎｙ ｓｉｇｎｅｄ ａｎ ａｇｒｅｅｍｅｎｔ ｏｎ ｍｕｔｕａｌ ｇｕａｒａｎｔｅｅ ｆｏｒ ｌｏａｎｓ ｗｉｔｈ ａｍｏｕｎｔ ｕｐ ｔｏ ＲＭＢ ０．１ ｂｉｌｌｉｏｎ ｗｉｔｈ Ｓｈｅｎｚｈｅｎ Ｌａｉｙｉｎｇｄａ Ｇｒｏｕｐ Ｃｏ．， Ｌｔｄ． Ａｓ ｏｆ Ｄｅｃｅｍｂｅｒ ３１， ２００１， ｔｈｅ ｔｏｔａｌ ａｍｏｕｎｔ ｏｆ ｔｈｅ ｌｏａｎ ｇｕａｒａｎｔｅｅ ｐｒｏｖｉｄｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｔｏ Ｓｈｅｎｚｈｅｎ Ｌａｉｙｉｎｇｄａ Ｇｒｏｕｐ Ｃｏ．， Ｌｔｄ． ｄｅｃｒｅａｓｅｄ ｆｒｏｍ ＲＭＢ ９４．４５ ｍｉｌｌｉｏｎ ｉｎ ｔｈｅ ｓａｍｅ ｐｅｒｉｏｄ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒ ｔｏ ＲＭＢ ８６．４５ ｍｉｌｌｉｏｎ． Ｔｈｅ ａｂｏｖｅ ｌｏａｎ ｈａｓ ｂｅｅｎ ｏｖｅｒｄｕｅ． ３． Ｅｎｔｒｕｓｔｍｅｎｔ ｏｆ ｃａｓｈ ａｓｓｅｔ ｍａｎａｇｅｍｅｎｔ Ｔｈｅ Ｃｏｍｐａｎｙ ｄｉｄ ｎｏｔ ｅｎｔｒｕｓｔ ｏｔｈｅｒｓ ｔｏ ｍａｎａｇｅ ｉｔｓ ｃａｓｈ ａｓｓｅｔｓ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． （Ｖ） Ｃｏｍｍｉｔｍｅｎｔｓ Ｔｈｅ ２００１ ｐｒｏｆｉｔ ｄｉｓｔｒｉｂｕｔｉｏｎ ｐｏｌｉｃｙ ｆｏｒｍｕｌａｔｅｄ ｂｙ ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ： Ｔｈｅ ｎｅｔ ｐｒｏｆｉｔ ｅａｒｎｅｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ２００１ ｗｉｌｌ ｎｏｔ ｂｅ ｄｉｓｔｒｉｂｕｔｅｄ ｂｅｆｏｒｅ ｔｈｅ ｌｏｓｓｅｓ ｏｆ ｔｈｅ ｐｒｅｖｉｏｕｓ ｙｅａｒｓ ａｒｅ ｆｕｌｌｙ ｃｏｖｅｒｅｄ． Ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ ｈａｓ ｉｍｐｌｅｍｅｎｔｅｄ ｔｈｉｓ ｐｏｌｉｃｙ． （ＶＩ） Ａｐｐｏｉｎｔｍｅｎｔ ａｎｄ ｒｅｍｏｖａｌ ｏｆ ｃｅｒｔｉｆｉｅｄ ｐｕｂｌｉｃ ａｃｃｏｕｎｔａｎｔｓ Ｔｈｅ Ｃｏｍｐａｎｙ ａｐｐｏｉｎｔｅｄ Ｓｈｅｎｚｈｅｎ Ｐｅｎｇｃｈｅｎｇ Ｃｅｒｔｉｆｉｅｄ Ｐｕｂｌｉｃ Ａｃｃｏｕｎｔａｎｔｓ ａｎｄ Ｈｏ ａｎｄ Ｈｏ ＆ Ｃｏｍｐａｎｙ ａｓ ｔｈｅ ａｕｄｉｔｉｎｇ ｏｒｇａｎｓ ｆｏｒ ｔｈｅ Ａ ｓｈａｒｅｓ ａｎｄ Ｂ ｓｈａｒｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． Ｔｈｅ ｒｅｍｕｎｅｒａｔｉｏｎ ｐａｉｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｔｏ ｔｈｅ ａｂｏｖｅ ａｃｃｏｕｎｔａｎｔｓ ｆｉｒｍｓ ｉｎ ２００１ ｗａｓ ｒｅｓｐｅｃｔｉｖｅｌｙ ＲＭＢ ０．３５ ｍｉｌｌｉｏｎ ａｎｄ ＲＭＢ ０．１５ ｍｉｌｌｉｏｎ， ｉｎｃｌｕｄｉｎｇ ｔｒａｖｅｌｉｎｇ 15 ｅｘｐｅｎｓｅｓ． Ｔｈｅ Ｃｏｍｐａｎｙ ａｐｐｏｉｎｔｅｄ Ｓｈｅｎｚｈｅｎ Ｄａｈｕａ Ｔｉａｎｃｈｅｎｇ Ｃｅｒｔｉｆｉｅｄ Ｐｕｂｌｉｃ Ａｃｃｏｕｎｔａｎｔｓ ａｎｄ Ｋ Ｃ Ｏｈ ＆ Ｃｏｍｐａｎｙ） ａｓ ｔｈｅ ａｕｄｉｔｉｎｇ ｏｒｇａｎｓ ｆｏｒ ｔｈｅ Ａ ｓｈａｒｅｓ ａｎｄ Ｂ ｓｈａｒｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ ｉｎ ２０００． Ｔｈｅ ｒｅｍｕｎｅｒａｔｉｏｎ ｐａｉｄ ｂｙ ｔｈｅ Ｃｏｍｐａｎｙ ｔｏ ｔｈｅ ａｂｏｖｅ ａｃｃｏｕｎｔａｎｔｓ ｆｉｒｍｓ ｗａｓ ｒｅｓｐｅｃｔｉｖｅｌｙ ＲＭＢ ０．３９ ｍｉｌｌｉｏｎ ａｎｄ ＲＭＢ ０．１４ ｍｉｌｌｉｏｎ， ｉｎｃｌｕｄｉｎｇ ｔｒａｖｅｌｉｎｇ ｅｘｐｅｎｓｅｓ． （ＶＩＩ） Ｓｕｐｅｒｖｉｓｉｏｎ ｏｖｅｒ ｔｈｅ Ｃｏｍｐａｎｙ ａｎｄ ｉｔｓ ｄｉｒｅｃｔｏｒｓ ａｎｄ ｓｅｎｉｏｒ ｅｘｅｃｕｔｉｖｅｓ Ｔｈｅ Ｃｏｍｐａｎｙ ａｎｄ ｉｔｓ ｄｉｒｅｃｔｏｒｓ ａｎｄ ｓｅｎｉｏｒ ｅｘｅｃｕｔｉｖｅｓ ｗｅｒｅ ｎｏｔ ｉｎｖｅｓｔｉｇａｔｅｄ ｂｙ ＣＳＲＣ， ａｄｍｉｎｉｓｔｒａｔｉｖｅｌｙ ｐｕｎｉｓｈｅｄ ｏｒ ｐｕｂｌｉｃｌｙ ｃｒｉｔｉｃｉｚｅｄ ｂｙ ＣＳＲＣ ｏｒ ｐｕｂｌｉｃｌｙ ｃｏｎｄｅｍｎｅｄ ｂｙ ｓｔｏｃｋ ｅｘｃｈａｎｇｅ． （ＶＩＩＩ） Ｉｎｆｌｕｅｎｃｅ ｏｆ Ｃｈｉｎａ ｓ ｅｎｔｒｙ ｔｏ ＷＴＯ ｏｎ ｔｈｅ ｏｐｅｒａｔｉｎｇ ａｃｔｉｖｉｔｉｅｓ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｃｈｉｎａ ｓ ｅｎｔｒｙ ｔｏ ＷＴＯ ｗｉｌｌ ｂｒｉｎｇ ｎｅｗ ｏｐｐｏｒｔｕｎｉｔｉｅｓ ｔｏ ｔｈｅ ｄｅｖｅｌｏｐｍｅｎｔ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔｈｅ Ｃｏｍｐａｎｙ ｗｉｌｌ ｍａｉｎｌｙ ｂｅｎｅｆｉｔ ｆｒｏｍ ｔｈｅ ｅｎｌａｒｇｅｍｅｎｔ ｏｆ ｅｘｐｏｒｔ ｍａｒｋｅｔ． Ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｒｅｇｕｌａｔｉｏｎｓ ｏｆ ＡＴＣ， ｔｈｅ ｑｕｏｔａ ｒｅｓｔｒｉｃｔｉｏｎ ｉｍｐｏｓｅｄ ｂｙ ｏｔｈｅｒ ｃｏｕｎｔｒｉｅｓ ｏｎ Ｃｈｉｎａ ｗｉｌｌ ｂｅ ｇｒａｄｕａｌｌｙ ｒｅｄｕｃｅｄ ａｎｄ ｆｉｎａｌｌｙ ｃａｎｃｅｌｌｅｄ ｉｎ ２００５， ｗｈｉｃｈ ｗｉｌｌ ｐｒｏｖｉｄｅ ｇｏｏｄ ｏｐｐｏｒｔｕｎｉｔｉｅｓ ｔｏ ｔｈｅ Ｃｏｍｐａｎｙ ｆｏｒ ｅｎｌａｒｇｉｎｇ ｔｈｅ ｅｘｐｏｒｔ ｏｆ ｔｅｘｔｉｌｅ ａｎｄ ｇａｒｍｅｎｔ ｐｒｏｄｕｃｔ． Ｔｈｅ Ｃｏｍｐａｎｙ ｗｉｌｌ ｄｅｖｅｌｏｐ ａｎｄ ｅｓｔａｂｌｉｓｈ ｎｅｗ ｔｅｘｔｉｌｅ ｅｎｔｅｒｐｒｉｓｅｓ ｔｈｒｏｕｇｈ ｉｎｔｅｇｒａｔｉｎｇ ｔｈｅ ｅｘｉｓｔｉｎｇ ｏｎｅｓ ａｎｄ ｆｏｒｍ ｃｏｍｐｅｔｉｔｉｖｅ ｔｅｘｔｉｌｅ ｉｎｄｕｓｔｒｙ ｃｈａｉｎ ｔｏ ｑｕｉｃｋｅｎ ｉｔｓ ｄｅｖｅｌｏｐｍｅｎｔ． Ｘ． Ｆｉｎａｎｃｉａｌ Ｒｅｐｏｒｔｓ （Ｉ） Ｃｏｎｓｏｌｉｄａｔｅｄ ｐｒｏｆｉｔ ｓｔａｔｅｍｅｎｔ （ｅｎｃｌｏｓｅｄ ｈｅｒｅｉｎａｆｔｅｒ） （ＩＩ） Ｃｏｎｓｏｌｉｄａｔｅｄ ｂａｌａｎｃｅ ｓｈｅｅｔ （ｅｎｃｌｏｓｅｄ ｈｅｒｅｉｎａｆｔｅｒ） （ＩＩＩ） Ｃｏｎｓｏｌｉｄａｔｅｄ ｃａｓｈ ｆｌｏｗ ｓｔａｔｅｍｅｎｔ （ｅｎｃｌｏｓｅｄ ｈｅｒｅｉｎａｆｔｅｒ） （ＩＶ） Ａｕｄｉｔｏｒｓ ｒｅｐｏｒｔ ＸＩ． Ｄｏｃｕｍｅｎｔｓ Ａｖａｉｌａｂｌｅ ｆｏｒ Ｉｎｓｐｅｃｔｉｏｎ １． Ｆｉｎａｎｃｉａｌ ｓｔａｔｅｍｅｎｔｓ ｂｅａｒｉｎｇ ｔｈｅ ｓｅａｌ ａｎｄ ｓｉｇｎａｔｕｒｅ ｏｆ ｌｅｇａｌ ｒｅｐｒｅｓｅｎｔａｔｉｖｅ， ｆｉｎａｎｃｉａｌ ｃｏｎｔｒｏｌｌｅｒ ａｎｄ ａｃｃｏｕｎｔｉｎｇ ｐｅｒｓｏｎｎｅｌ ｉｎ ｃｈａｒｇｅ． ２． Ｔｈｅ ｏｒｉｇｉｎａｌ ｏｆ ｔｈｅ ａｕｄｉｔｏｒｓ ｒｅｐｏｒｔ ｂｅａｒｉｎｇ ｔｈｅ ｓｅａｌ ｏｆ ｔｈｅ ｃｅｒｔｉｆｉｅｄ ｐｕｂｌｉｃ ａｃｃｏｕｎｔａｎｔｓ ａｎｄ ｔｈｅ ｓｅａｌ ａｎｄ ｓｉｇｎａｔｕｒｅ ｏｆ Ｃ．Ｐ．Ａ． ３． Ｔｈｅ ｏｒｉｇｉｎａｌ ｏｆ ａｌｌ Ｃｏｍｐａｎｙ ｓ ｄｏｃｕｍｅｎｔｓ ａｎｄ ｔｈｅ ｏｒｉｇｉｎａｌ ｍａｎｕｓｃｒｉｐｔｓ ｏｆ ａｎｎｏｕｎｃｅｍｅｎｔｓ ｐｕｂｌｉｃｌｙ ｄｉｓｃｌｏｓｅｄ ｏｎ Ｈｏｎｇ Ｋｏｎｇ Ｃｏｍｍｅｒｃｉａｌ Ｄａｉｌｙ ａｎｄ Ｓｅｃｕｒｉｔｉｅｓ Ｔｉｍｅｓ ｉｎ ｔｈｅ ｒｅｐｏｒｔ ｐｅｒｉｏｄ． Ｔｈｅ ａｂｏｖｅ ｄｏｃｕｍｅｎｔｓ ｗｅｒｅ ｃｏｍｐｌｅｔｅｌｙ ｐｌａｃｅｄ ａｔ ｔｈｅ Ｏｆｆｉｃｅ ｏｆ ｔｈｅ Ｃｏｍｐａｎｙ． Ｔｈｉｓ ｒｅｐｏｒｔ ｈａｓ ｂｅｅｎ ｐｒｅｐａｒｅｄ ｉｎ ｂｏｔｈ Ｃｈｉｎｅｓｅ ａｎｄ Ｅｎｇｌｉｓｈ． Ｉｎ ｃａｓｅ ｏｆ ａｎｙ ｄｉｓｃｒｅｐａｎｃｙ， ｔｈｅ Ｃｈｉｎｅｓｅ ｖｅｒｓｉｏｎ ｓｈａｌｌ ｐｒｅｖａｉｌ． Ｔｈｅ Ｂｏａｒｄ ｏｆ Ｄｉｒｅｃｔｏｒｓ ｏｆ Ｓｈｅｎｚｈｅｎ Ｔｅｘｔｉｌｅ （Ｈｏｌｄｉｎｇｓ） Ｃｏ．， Ｌｔｄ． Ｍａｒｃｈ ２６， ２００２ 16 REPORT OF THE AUDITORS TO THE HOLDERS OF B SHARES OF SHENZHEN TEXTILE (HOLDINGS) CO., LTD. (Incorporated in the People’s Republic of China with limited liability) We have audited the financial statements on page 2 to 30. The preparation of these financial statements are the responsibility of the Group’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. However, the evidence available to us was limited as follows. As explained in note 29 of the notes to the accounts, no provision has been made for the guarantees given for the banking facilities granted for Shenzhen Lionda Holdings Company Limited (“Lionda”) amounting to RMB86,450,000 and the associated interest and expenses. However, we were unable to obtain sufficient information and explanations regarding the financial position of Lionda and the amounts of the associated interest payable and expenses so as to enable us to assess the amounts to be provided for the loss arising from the guarantees. Any provision found to be necessary would reduce the net assets of the Group at 31 December 2001 and its profit for the year then ended. Except for any adjustments might have been found to be necessary had we been able to obtain sufficient evidence concerning the guarantees and the provision for associated interest payable and expenses, in our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of 31 December 2001 and the results of its operations and its cash flows for the year then ended, in accordance with International Accounting Standards. Ho and Ho & Company Certified Public Accountants Hong Kong 26 March 2002 17 CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2001 NOTES 2001 2000 RMB’000 RMB’000 (As restated) Revenue 5 342,606 292,896 Cost of Sales (270,871) (215,007) Gross profit 71,735 77,889 Other revenue 10,060 3,350 Distribution and administrative expenses (56,894) (50,889) Profit from operations 7 24,901 30,350 Amortization of negative goodwill 567 567 Income/(loss) from investments 8 17,873 (545) Share of (loss)/profit of associates (502) 2,076 Finance costs 9 (14,515) (16,416) Profit before tax 28,324 16,032 Taxation 10 83 (415) Profit after tax 28,407 15,617 Minority interests (208) 131 Net profit for the year 28,199 15,748 Dividend 11 - - Earnings per share 12 RMB0.173 RMB0.096 18 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2001 NOTES 2001 2000 RMB’000 RMB’000 ASSETS (As restated) Non-current assets Property, plant and equipment 13 164,886 166,214 Investment properties 14 101,372 101,372 Construction in progress 15 11,504 1,199 Pre-operating expenses - 4,158 Other non-current assets 16 - 11,002 Investments in subsidiaries 17 7,025 10,195 Investments in associates 18 9,157 43,351 Other investment 19 30,946 31,058 324,890 368,549 Current assets Inventories 20 41,755 47,062 Accounts receivable 46,176 36,698 Prepayments, deposits and other receivables 71,169 49,021 Investments in securities 21 4,507 8,506 Cash and bank balances 193,887 183,007 357,494 324,294 Total assets 682,384 692,843 EQUITY AND LIABILITIES Capital and Reserves Share capital 22 163,416 163,416 Reserves 23 143,779 116,147 307,195 279,563 Minority interests 43,186 44,378 Non-current liabilities Borrowings due over one year 26 500 7,372 Current liabilities Borrowings payable on demand or due within one year 26 188,514 196,570 Accounts payable 26,009 42,260 Other payables and accrued expenses 97,952 103,101 Dividend payable 27 18,732 18,732 Provision for taxation 296 867 331,503 361,530 Total equity and liabilities 682,384 692,843 The financial statements on pages 2 to 30 were approved by the board of directors and were authorised for issue on 26 March 2002 and are signed on its behalf by: DIRECTOR DIRECTOR 19 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2001 Statutory Statutory Properties Negative Capital surplus public revaluation Accumulated Share capital goodwill reserve reserve welfare fund reserve losses Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Balance at 1 January 2000 163,416 86,195 4,951 13,636 81,639 (85,506) 264,331 Negative goodwill arising from consolidation 8,508 8,508 Amortization of negative goodwill (567) (567) Revaluation deficit (8,457) (8,457) Reclassification 375 (375) - Net profit for the year - as previously reported 25,630 25,630 - prior year adjustments (note 24) (9,882) (9,882) As restated 15,748 15,748 Balance at 31 December 2000 163.416 7,941 77,738 5,326 13,261 81,639 (69,758) 279,563 Amortization of negative goodwill (567) (567) Net profit for the year 28,199 28,199 Balance at 31 December 2001 163,416 7,374 77,738 5,326 13,261 81,639 (41,559) 307,195 20 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2001 NOTE 2001 2000 RMB’000 RMB’000 (As restated) CASH GENERATED FROM OPERATIONS 25 15,509 61,247 Income taxes paid (437) (415) NET CASH INFLOW FROM OPERATING ACTIVITIES 15,072 60,832 INVESTING ACTIVITIES Interest received 4,031 4,055 Additions to construction in progress (10,305) - Acquisition of property, plant and equipment (3,989) (5,505) Proceeds from disposal of property, plant and equipment 363 - (Increase) / decrease in amount due from associates (4,750) 7,335 Increase in amount due to associates 38,391 1,970 Proceeds from disposal of other investment 6,888 19,361 Acquisition of other non-current assets (2,387) (8,671) Decrease / (increase) in investments in securities 2,709 (8,000) Proceeds from disposal of investment in a subsidiary (5,521) - Decrease in investments in associates - (2,801) NET CASH INFLOW FROM INVESTING ACTIVITIES 25,430 7,744 NET CASH INFLOW BEFORE FINANCING ACTIVITIES 40,502 68,576 FINANCING ACTIVITIES Interest expenses (13,294) (16,311) (Decrease)/increase in minority interests (1,400) 31,284 Decrease in borrowings (14,928) (19,217) NET CASH OUTFLOW FROM FINANCING ACTIVITIES (29,622) (4,244) INCREASE IN CASH AND CASH EQUIVALENTS 10,880 64,332 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 183,007 118,675 CASH AND CASH EQUIVALENTS AT END OF YEAR 193,887 183,007 21 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 1. CORPORATE INFORMATION Shenzhen Textile (Holdings) Co., Ltd. (the “Company”) was established in the People’s Republic of China (the “PRC”) as a joint stock limited company. The ultimate holding company of the Company is Shenzhen Investment Administrative Company, a state-owned enterprise established in the PRC. The principal activity of the Company is investment holding and the principal activities of its subsidiaries are set out in note 17 of the notes to the accounts. 2. PRESENTATION OF FINANCIAL STATEMENTS The financial statements have been prepared in accordance with International Accounting Standards (IAS). These financial statements are presented in Renminbi (“RMB”) since that is the currency in which the majority of the Group’s transactions are denominated. 3. ADOPTION OF INTERNATIONAL ACCOUNTING STANDARDS In the current year, the Group has adopted the following International Accounting Standards for the first time: IAS 39 Financial Instruments: Recognition and Measurement IAS 40 Investment Property Revisions to a number of other IAS also took effect in 2001. Those revisions concerned matters of detailed application which have no significant effect on amounts reported for the current or prior accounting periods. 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared on the historical cost basis, except for the revaluation of land and buildings and certain financial instruments. The principal accounting policies adopted are set out below. (a) Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and enterprises controlled by the Company (its “subsidiaries”) made up to 31 December each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee enterprise so as to obtain benefits from its activities. 22 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - continued (a) Basis of consolidation - continued On acquisition, the assets and liabilities of a subsidiary are measured at their fair values at the date of acquisition. The interest of minority shareholders is stated at the minority’s proportion of the fair values of the assets and liabilities recognised. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group. All significant intercompany transactions and balances between group enterprises are eliminated on consolidation. (b) Investments in associates An associate is an enterprise over which the Group is in a position to exercise significant influence, through participation in the financial and operating policy decisions of the investee. The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. The carrying amount of such investments is reduced to recognise any impairment in the value of individual investments. Where a group enterprise transacts with an associate of the Group, unrealised profits and losses are eliminated to the extent of the Group’s interest in the relevant associate, except where unrealised losses provide evidence of an impairment of the asset transferred. (c) Goodwill Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition. Goodwill is recognised as an asset and amortised on a straight-line basis following an assessment of its useful life. 23 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - continued (c) Goodwill - continued Goodwill arising on the acquisition of an associate is included within the carrying amount of the associate. Goodwill arising on the acquisition of subsidiaries and jointly controlled entities is presented separately in the balance sheet. On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of unamortised goodwill is included in the determination of the profit or loss on disposal. (d) Negative goodwill Negative goodwill represents the excess of the Group’s interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition over the cost of acquisition. Negative goodwill is released to income based on an analysis of the circumstances from which the balance resulted. To the extent that the negative goodwill is attributable to losses or expenses anticipated at the date of acquisition, it is released to income in the period in which those losses or expenses arise. The remaining negative goodwill is recognized as income on a straight-line basis over the remaining average useful life of the identifiable acquired depreciable assets. To the extent that such negative goodwill exceeds the aggregate fair value of the acquired identifiable non-monetary assets, it is recognized in income immediately. Negative goodwill arising on the acquisition of an associate is deducted from the carrying value of that associate. Negative goodwill arising on the acquisition of subsidiaries or jointly controlled entities is presented separately in the balance sheet as a deduction from assets. (e) Revenue recognition Sales of goods are recognised when goods are delivered and title has passed. Rental income is recognised when the rental is due and receivable. Hotel services income is recognised when the services are rendered. (f) Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. 24 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - continued (f) Leasing - continued The Group as lessor Amounts due from lessees under finance leases are recorded as receivables at the amount of the Group’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. The Group as lessee Assets held under finance leases are recognized as assets of the Group at their fair value at the date of acquisition. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Finance costs, which represent the difference between the total leasing commitments and the fair value of the assets acquired, are charged to the income statement over the term of the relevant lease so as to produce constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease. (g) Foreign currencies Transactions in currencies other than Renminbi are initially recorded at the rates of exchange prevailing on the dates of the transactions. Monetary assets and liabilities denominated in such currencies are retranslated at the rates prevailing on the balance sheet date. Profits and losses arising on exchange are included in net profit or loss for the period. On consolidation, the assets and liabilities of the Group’s overseas operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are classified as equity and transferred to the Group’s translation reserve. Such translation differences are recognized as income or as expenses in the period in which the operation is disposed of. 25 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - continued (h) Retirement benefit costs Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution plans where the Group’s obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit plan. (i) Taxation The charge for current tax is based on the results for the year as adjusted for items which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substaritively enacted by the balance sheet date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductib le temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill (or negative goodwill) from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction which affects neither the tax profit nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is calculated at the tax rates are expected to apply to the period when the asset is realised or the liability is settled. Deferred tax is charged or credited in the income statement, except when it relates to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. 26 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - continued (i) Taxation - continued Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. (j) Property, plant and equipment Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance sheet at their revalued amounts, being the fair value on the basis of their existing use at the date of revaluation, less any subsequent accumulated depreciation. Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially for that which would be determined using fair values at the balance sheet date. Any revaluation increase arising on the revaluation of such land and buildings is credited to the properties revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in which case the increase is credited to the income statement to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of land and building is charged as an expense to extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset. On the subsequent sale or retirement of a revalued property, the attributable revaluation surplus remaining in the revaluation reserve is transferred to accumulated profits. Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried at cost, less any identified impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. 27 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 – continued 4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - continued (j) Property, plant and equipment - continued Depreciation is charged so as to write off the cost or valuation of assets, other than construction in progress, over their estimated useful lives, using the straight-line method. Useful lives Land and buildings 35-40years Leasehold improvement 20 years Plant and machinery 10 years Office equipment 8 years Motor vehicles 8 years The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in income. Certain above assets are stated at valuation. Independent valuation is performed periodically with the last valuation performed in 1993. In the intervening years, the directors review the carrying value of these assets and adjustment is made where in the directors’ opinion there has been a material change in value. (k) Investment property Investment property, which is property hold to earn rentals and/or capital appreciation, is stated at its fair value at the balance sheet date. Gains or losses arising from change in the fair value of investment property are included in net profit or loss for the period in which they arise. 28 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - continued (l) Impairment At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. Impairment losses are recognised as an expense immediately, unless the relevant asset it land or buildings at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at the revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. (m) Inventories Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in marking, selling and distribution. (n) Trade receivables Trade receivables are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. 29 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - continued (o) Investments in securities Investments in securities are recognised on a trade-date basis and are initially measured at cost. At subsequent reporting dates, debt securities that the Group has the expressed intention and ability to hold to maturity (held-to-maturity debt securities) are measured at amortised cost, less any impairment loss recognised to reflect irrecoverable amounts. The annual amortisation of any discount or premium on the acquisition of a held-to-maturity security is aggregated with other investment income receivable over the term of the instrument so that the revenue recognised in each period represents a constant yield on the investment. Investments other than held -to-maturity debt securities are classified as either held for trading or available-for-sale and are measured at subsequent reporting dates at fair value. Where securities are held for trading purposes, unrealised gains and losses are included in net profit or loss for the period. For available-for-sale investments, unrealised gains and losses are recognised directly in equity, until the security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in th e net profit or loss for the period. (p) Bank borrowings Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance charges, including premiums payable on settlement or redemption, are accounted for on an accrual basis and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. (q) Trade payables Trade payables are stated at their nominal value. (r) Provisions Provisions are recognised when the Group has a present obligation as a result of a past event which it is probable will result in an outflow of economic benefits that can be reasonably estimated. 30 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - continued (s) Cash equivalents Cash equivalents represents short-term, highly liquid investments that have insignificant risk of changes in value. 5. REVENUE An analysis of the Group’s revenue is as follows: 2001 2000 RMB’000 RMB’000 Sales of goods 301,251 250,093 Property rental income 37,182 38,026 Hotel operations 4,173 4,777 342,606 292,896 31 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 6. BUSSINESS AND GEOGRAPHICAL SEGMENTS Business Segments 2001 Segment information about these businesses is presented below :- For the year ended 31 December 2001 Sales of Hotel goods Leasing operations Eliminations Consolidated RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 REVENUE External sales 301,251 37,182 4,173 - 342,606 Intra-group sales 15,836 - 912 (16,748) - Total revenue 317,087 37,182 5,085 (16,748) 342,606 RESULT Segment result 19,060 28,512 208 47,780 Unallocated corporate expenses (22,879) Profit from operations 24,901 Finance costs (14,515) Share of loss of associates (502) Income from investments 17,873 Amortization of negative goodwill 567 Profit before tax 28,324 Taxation 83 Profit after tax 28,407 BALANCE SHEET As at 31 December 2001 RMB’000 RMB’000 RMB’000 RMB’000 ASSETS Segment assets 480,242 119,898 10,937 611,077 Investments in associates 9,157 Unallocated corporate assets 62,150 Consolidated total assets 682,384 LIABILITIES Segment liabilities 127,867 8,672 1,232 137,771 Unallocated corporate liabilities 194,232 Consolidated total liabilities 332,003 32 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 6. BUSSINESS AND GEOGRAPHICAL SEGMENTS - continued 2000 For the year ended 31 December 2000 Sales of Hotel goods Leasing Operations Consolidated RMB’000 RMB’000 RMB’000 RMB’000 REVENUE External sales 250,093 38,026 4,777 292,896 RESULT Segment result 22,529 29,634 191 52,354 Unallocated corporate expenses (22,004) Profit from operations 30,350 Finance costs (16,416) Share of profit of associates 2,076 Income from investments (545) Amortization of negative goodwill 567 Profit before tax 16,032 Taxation (415) Profit after tax 15,617 BALANCE SHEET As at 31 December 2000 RMB’000 RMB’000 RMB’000 RMB’000 ASSETS Segment assets 445,589 123,272 10,867 579,728 Investments in associates 43,351 Unallocated corporate assets 69,764 Consolidated total assets 692,843 LIABILITIES Segment liabilities 144,162 12,646 1,362 158,170 Unallocated corporate liabilities 210,732 Consolidated total liabilities 368,902 33 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 6. BUSSINESS AND GEOGRAPHICAL SEGMENTS - continued Geographical Segments The Group’s operations are located in PRC, United States of America (“USA”) and Canada. The following is an analysis of the Group’s revenue by geographical market, irrespective of the origin of the good/services:- Revenue by geographical market Year ended Year ended 31/12/2001 31/12/2000 RMB’000 RMB’000 PRC 238,770 248,923 USA and Canada 103,836 43,973 342,606 292,896 The following is an analysis of carrying amount of segment assets, and additions to property, plant and equipment, analysed by the geographical area in which the assets are located: Carrying amount Additions to property, plant and of segment assets equipment 31/12/2001 31/12/2000 31/12/2001 31/12/2000 RMB’000 RMB’000 RMB’000 RMB’000 PRC 651,195 649,626 3,822 5,061 USA and Canada 31,189 43,217 167 444 682,384 692,843 3,989 5,505 7. PROFIT FROM OPERATIONS Profit from operations has been arrived at after charging/(crediting): 2001 2000 RMB’000 RMB’000 Written off of pre-operating expenses 4,158 - Increase / (decrease) in provision for inventories 47 (5,322) Depreciation and amortization 15,203 21,258 Loss on disposal of property , plant and equipment 2,226 126 Impairment loss on property, plant and equipment 489 - Decrease in provision for bad debts (3,265) (5,705) Staff costs 22,544 16,673 34 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 8. INCOME/(LOSS) FROM INVESTMENTS NOTE 2001 2000 RMB’000 RMB’000 Understatement of loss on investment in subsidiaries in prior year (505) - Profit on disposal of a subsidiary 28 3,214 - Subcontracting income from associates 2,799 - Impairment loss for associates - 4,310 (Increase)/decrease in impairment loss on investment in securities (1,290) 198 (Increase)/decrease in impairment loss on investment in subsidiaries (3,170) 21,843 Decrease/(increase) in impairment loss on other investment 6,776 (14,832) Other investment income / (loss) 10,049 (12,064) 17,873 (545) 9. FINANCE COSTS 2001 2000 RMB’000 RMB’000 Interest expenses 13,294 16,311 Bank charges 956 78 Exchange loss 265 27 14,515 16,416 10. TAXATION 2001 2000 RMB’000 RMB’000 Income tax: (134) 293 - the Company and its subsidiaries 51 122 - associates (83) 415 Income tax in the PRC has been provided at the prevailing rates of 15%-33% rate on the estimated assessable profit applicable to each individual company within the Group in PRC. Hong Kong profit tax has been provided at 16% (2000 : 16%) on the estimated assessable profits for the year of the relevant member of the Group in Hong Kong. 11. DIVIDEND The directors of the Group do not propose and declare the payment of a dividend for the year. 35 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 12. EARNINGS PER SHARE Earnings per share is based on the Group’s net profit attributable to shareholders of RMB28,199,000 (2000: RMB15,748,000) and on 163,416,000 (2000: RMB163,416,000) shares RMB 1 each in issue. 13. PROPERTY, PLANT AND EQUIPMENT Land and Leasehold Plant and Office Motor buildings Improvement machinery equipment vehicles Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 COST OR VALUATION At 1 January 2001 161,805 - 58,162 12,134 6,082 238,183 Transfer from other non-current assets - 16,318 - - - 16,318 Additions - - 2,087 705 1,197 3,989 Disposals (2,377) - (827) (1,207) (474) (4,885) Disposal of a subsidiary (551) - - (172) (242) (965) At 31 December 2001 158,877 16,318 59,422 11,460 6,563 252,640 ACCUMULATED DEPRECIATION At 1 January 2001 40,874 - 22,178 5,656 3,261 71,969 Transfer from other non-current assets - 6,458 - - - 6,458 Charge for the year 5,049 - 4,760 1,023 842 11,674 Written back on disposals (1,335) - (557) (26) (378) (2,296) Disposal of a subsidiary (136) - - (162) (242) (540) Impairment loss - - - - 489 489 At 31 December 2001 44,452 6,458 26,381 6,491 3,972 87,754 NET BOOK VALUE At 31 December 2001 114,425 9,860 33,041 4,969 2,591 164,886 At 31 December 2000 120,931 - 35,984 6,478 2,821 166,214 At cost 63,931 16,318 36,959 11,460 4,164 132,832 At revaluation 94,946 - 22,463 - 2,399 119,808 158,877 16,318 59,422 11,460 6,563 252,640 Certain of the above assets of the Group were appraised by Zhonghua (Shekou) Certified Public Accountants, professional valuers in 1993. They were appraised on the open market basis and carried in the consolidated balance sheet at valuation. As a result of the appraisal, an increase in value of the Group’s assets by approximately RMB44,294,000 as at 31 December 1994 was credited to property revaluation reserve. The directors were of the opinion that the carrying value of these revalued assets as at 31 December 2001 approximated the open market value since 1994. 36 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 14. INVESTMENT PROPERTIES Certain of the investment properties of the Group were appraised by Zhonghua (Shekou) Certified Public Accountants, professional valuers in 1993. These properties were appraised on the open market basis and carried in the consolidated balance sheet at valuation. As a result of the appraisal, an increase in value of the Group’s investment properties by approximately RMB37,345,000 as at 31 December 1994 was credited to property revaluation reserve. The directors were of the opinion that the carrying value of the investment properties as at 31 December 2001 approximated the open market value since 1994. The property rental income earned by the Group from its investment property, all of which is leased out under operating lease, amounted to RMB37,182,000 (2000: RMB 38,026,000). Direct operating expenses arising on the investment property for the year amounted to RMB8,180,000 (2000: RMB6,419,000). 15. CONSTRUCTION IN PROGRESS RMB’000 Cost At 1 January 2001 1,199 Additions 10,305 At 31 December 2001 11,504 16. OTHER NON-CURRENT ASSETS RMB’000 Cost At 1 January 2001 13,931 Additions 2,387 Transfer to property, plant and equipment (16,318) At 31 December 2001 - Amortisation At 1 January 2001 2,929 Charge for the year 3,529 Transfer to property, plant and equipment (6,458) At 31 December 2001 - Net book value As at 31 December 2001 - As at 31 December 2000 11,002 Other non-current assets represent leasehold improvements. 37 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 17. INVESTMENT IN SUBSIDIARIES As at 31 December 2001, the details of the principal subsidiaries are as follows: Place of establishment/ Attributable Subsidiaries operation equity interest Principal activity Consolidated Subsidiaries Shenfang Building Estate PRC 100% Property management Management Co., Ltd. Shenzhen Feng Sheng PRC 100% Manufacturing of clothing, Garments Co., Ltd. cloth and material Shenzhen Jinlan PRC 100% Manufacturing of bedding Decorative Products Ind. Co. and decorating products Shenzhen Huaqiang Hotel PRC 100% Hotel operations, catering and business center operations Shenzhen Lisi Industrial & PRC 100% Material supplies Development Co., Ltd. Shenzhen Zhong Xing Fibre PRC 75% Manufacturing and trading Products Co., Ltd. of fibre products Shenzhen Jing Guang PRC 100% Manufacturing and trading Shoes and Hose Co., Ltd. of sporting shoes and socks Shenzhen Shenfang-Lucky PRC 55% Manufacturing of digital Photoelectronic Materials Co., Ltd. monitor and relevant consumables and parts Jiangxi Xuanli Thread Co., Ltd. PRC 50.1% Manufacturing and trading of synthetic fibre Shenzhen Shenfang Import and Export PRC 49% # Import and export trading of Co., Ltd. textile Business Faith International Co., Ltd. Hong Kong 17.86% # Trading Unconsolidated Subsidiaries Darwin International Co., Ltd. Hong Kong 100% Import and export trading * Shenzhen Dahong Textile Co., Ltd. PRC 100% Manufacturing and trading of textile products * Shenzhen Risen Textile Technology PRC 100% Manufacturing of dyeing Development Co., Ltd. materials * Shenzhen Textile (Holding) Moscow 100% Trading * Moscow Diana Co., Ltd. Shenzhen Fenghua Zhi PRC 75% Manufacturing of fasteners * Dai Factory Co., Ltd. Shenzhen Lifeng Jeineng Equipment PRC 100% Manufacturing of energy Co., Ltd. saving equipment* 38 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 17. INVESTMENT IN SUBSIDIARIES - continued * Not required to be consolidated as the subsidiaries have ceased their business, under liquidation and / or are unable to transfer funds to the holding company because of operations under long-term restrictions. # The Group has the majority of voting rights in the meetings of the board of directors. 2001 2000 RMB’000 RMB’000 Investment in unconsolidated subsidiaries, at cost 10,847 10,847 Impairment loss (3,822) (652) 7,025 10,195 18. INVESTMENTS IN ASSOCIATES 2001 2000 RMB’000 RMB’000 Unlisted investment: Share of net assets 43,087 43,640 Amount due therefrom 7,726 2,976 Amount due thereto (41,656) (3,265) 9,157 43,351 At 31 December 2001, details of the principal associates are as follows: Place of establishment/ Attributable Name operation equity interest Principal activity Shenfang China East PRC 50% Manufacturing of electronic Electronics Co., Ltd toys Shehzhen Label Weaving PRC 50% Manufacturing and trading Factory Co., Ltd. of label tags Shenzhen Tianlong Industrial PRC 50% Manufacturing and trading Trading Co. and of health balls, food, and textile related products Shenzhen Xieli PRC 50% Motor vehicle repair and Automobile Co., Ltd. maintenance services Shenzhen Kunhwa PRC 45% Dyeing Dyeing Co., Ltd. Longwell Development Printing PRC 40.25% Processing of corduroy and Dyeing Co., Ltd. Mirage (Saipan) Co., Ltd. Commonwealth 35% Manufacturing and trading of Northern of ladies undertake of Mariana Islands knitting apparel Shenzhen Top Form PRC 30% Manufacturing and trading Underwear Co., Ltd. of ladies underwear Jiujiang Hong Fa Real Estates PRC 30% Real property development Development Co., Ltd. Shen Hu Textile Co., Ltd. PRC 20% Textile products Shenzhen Hualian Fangzhi PRC 20% Investment holding (Holding) Co., Ltd. Shenzhen Xin Fang Textile PRC 20% Textile products Factory Co., Ltd 39 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 19. OTHER INVESTMENT 2001 2000 RMB’000 RMB’000 Unlisted investment, at cost 73,317 80,205 Impairment loss (42,371) (49,147) 30,946 31,058 20. INVENTORIES 2001 2000 RMB’000 RMB’000 Raw materials 10,826 8,769 Work in progress 6,480 - Finished goods 24,449 38,293 41,755 47,062 Included above are raw materials of RMB405,000 (2000 : RMB1,162,000), work in progress of RMB682,000 (2000 : Nil) and finished goods of RMB7,973,000 (2000 : RMB15,026,000) carried at net realisable values. 21. INVESTMENTS IN SECURITIES 2001 2000 RMB’000 RMB’000 Listed equity securities, cost less impairment loss 4,403 8,402 PRC government bonds 104 104 4,507 8,506 Market value of listed equity securities at the balance sheet date 4,403 8,402 22. SHARE CAPITAL 2001 2000 RMB’000 RMB’000 Registered, issued and fully paid: 108,332,000 domestic shares of RMB 1 each 108,332 108,332 22,084,000 “A” shares of RMB 1 each 22,084 22,084 33,000,000 “B” shares of RMB 1 each 33,000 33,000 163,416 163,416 40 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 23. RESERVES Statutory Statutory Property Negative Capital surplus public revaluation Accumulated goodwill reserve reserve welfare fund reserve loss Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Balance at 1 January 2000 - 86,195 4,951 13,636 81,639 (85,506) 100,915 Negative goodwill arising from consolidation 8,508 8,508 Amortization of negative goodwill (567) (567) Revaluation deficit (8,457) (8,457) Reclassification 375 (375) - Net profit for the year - as previously reported 25,630 - prior year adjustments (note 24) (9,882) - as restated 15,748 15,748 Balance at 31 December 2000 7,941 77,738 5,326 13,261 81,639 (69,758) 116,147 Amortization of negative goodwill (567) (567) Net profit for the year 28,199 28,199 Balance at 31 December 2001 7,374 77,738 5,326 13,261 81,639 (41,559) 143,779 According to the Company’s Articles of Association and the PRC’s relevant laws and policies, after setting off of the Company’s accumulated losses, the Company is required to make a transfer at the rate of 10% from the profit after tax, determined in accordance with the PRC accounting standards, of the Company to the statutory surplus reserve until the reserve balance has reached 50% of the registered capital of the Company. In addition, after setting off of the accumulated losses, the Company is also required to transfer 5% to 10% from the profit after tax to the statutory public welfare fund. The statutory surplus reserve and the capital reserve may be applied for the following purposes: i the statutory surplus reserve may be used to set off against loss; and ii a reserve may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings or by increasing the par value of the shares currently held by them, but the remaining statutory surplus reserve be no less than 25% of the enlarged registered capital. The statutory public welfare fund shall only be applied for the collective welfare of the Company’s employees; and upon utilization, an amount equal to the expenditure spent on the collective staff welfare shall be transferred from the statutory public welfare fund to discretionary surplus reserve. Prior to off-setting the Company’s accumulated losses and the relevant appropriations to the statutory surplus reserve and the statutory public welfare fund, no dividend would be declared. 41 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 24. PRIOR YEAR ADJUSTMENTS Prior year adjustments have been made to correct the following fundamental errors in previous years :- (i) Underprovision of impairment loss on other investment in Girtian Industry (Group) Co., Ltd. totalling RMB14,832,000. (ii) Underprovision of share of loss by minority interests for impairment loss on intangible assets totalling RMB4,950,000. As a result, prior year adjustments were made to reduce the profit for the year ended 31 December 2000 and increase the accumulated losses at 31 December 2000. 25. RECONCILIATION OF PROFIT BEFORE TAX TO CASH GENERATED FROM OPERATIONS 2001 2000 RMB’000 RMB’000 (As restated) Profit before tax 28,324 16,032 Interest income (4,031) (4,055) Interest expenses 13,294 16,311 Written off of pre-operating expenses 4,158 - Depreciation and amortisation 15,203 21,528 Loss on disposal of property, plant and equipment 2,226 126 Increase/(Decrease) in impairment loss - Subsidiaries 3,170 (21,843) - Associates - (4,310) - Other investment (6,776) 14,832 - Investment in securities 1,290 (198) - Property, plant and equipment 489 - Gain on disposal of a subsidiary (note 28) (3,214) - Increase/(decrease) in provision for inventories 47 (5,322) Decrease in provision for bad debts (3,265) (5,705) Amortisation of negative goodwill (567) (567) Share of loss/(profit) of associates 502 (2,076) Operating cash flows before movements in working capital 50,850 24,753 Decrease in inventories 5,218 1,366 Increase in accounts receivable (4,464) (8,050) (Increase)/decrease in prepayments, deposits and other receivables (24,369) 11,967 Decrease in accounts payable (7,655) (4,407) (Decrease)/increase in other payables, and accrued expenses (4,071) 35,618 Cash generated from operations 15,509 61,247 42 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 26. BORROWINGS 2001 2000 RMB’000 RMB’000 Bank loans – secured 121,720 133,000 – unsecured 54,000 63,570 Other loans – unsecured 13,294 7,372 189,014 203,942 The loans are repayable as follows: On demand or within one year 188,514 196,570 In the second to fifth year inclusive 500 7,372 189,014 203,942 Less: amount repayable on demand or due within one year shown under current liabilities (188,514) (196,570) Amount due after one year 500 7,372 The interest was charged at various rates ranging from 5.3952% to 6.435% (2000: from 5.36% to 6.34%). 27. DIVIDEND PAYABLE Dividend payable includes an amount due to the Company’s ultimate holding company, Shenzhen Investment Administrative Company, totalling RMB18,483,000 (2000 : RMB18,483,000). 28. GAIN ON DISPOSAL OF A SUBSIDIARY RMB’000 Prepayments, deposits and other receivables 472 Inventories 42 Property, plant and equipment 425 Accounts payable (8,596) Other payables and accrued expenses (1,078) (8,735) Cash and bank balances 5,521 Net liabilities 3,214 Proceeds from disposal of the subsidiary - Profit on disposal 3,214 43 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 29. CONTINGENT LIABILITIES At the balance sheet date, the Group had the following contingent liabilities: 2001 2000 RMB’000 RMB’000 Guarantees to bankers in favor of: - A fellow subsidiary 86,450 94,450 - A related party - 2,017 86,450 96,467 The Group had given guarantees for banking facilities granted to Shenzhen Lionda Holdings Company Limited (“Lionda”), a subsidiary of Shenzhen Investment Administrative Company, amounting to RMB92,000,000 (2000 : RMB100,000,000) of which RMB86,450,000 (2000 : RMB94,450,000) had been utilized at the balance sheet date. Due to the serious financial difficulties of Lionda, the Company would have been liable to repay the indebtedness arising from the guarantees given. As at 31 December 2001, the corresponding lending banks had requested in writing the Company to repay the bank indebtedness due by Lionda together with the associated interest payable and expenses. However, no legal actions have yet been taken to recover the amount due. Since the Directors were unable to obtain sufficient information for ascertaining with reasonable grounds whether the Group would have ultimate obligations under the guarantees, including the amounts of the associated interest payable and expenses, the Group does not make any provision for loss in respect of these contingent liabilities. 30. CAPITAL COMMITMENTS At the balance sheet date, the Group had the following capital commitments: 2001 2000 RMB’000 RMB’000 Contracted for but not yet provided for: Acquisition of property and plant 699 - 44 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 31. PLEDGE OF ASSETS The Group had pledged its bank fixed deposit of RMB4,255,000 (2000:RMB12,161,000) and investment properties and buildings of RMB124,277,000 (2000: RMB162,863,000) as security for general banking facilities granted. 32. OPERATING LEASE COMMITMENT At the balance sheet date, the Group had outstanding commitments under non-cancellable operating lease, which fall due as follows: 2001 2000 RMB’000 RMB’000 In second to fifth year inclusive 589 961 33. RETIREMENT BENEFIT SCHEME ARRANGEMENTS The Group participates in a retirement benefit scheme arrangement which is managed by 深圳市社會保險事務管理局 (“SABSI”). The Group has obligations to make monthly contributions to the scheme, which the SABSI is responsible for the retirement benefit scheme in all other aspects. For the year, the Group paid for the contribution of the benefit retirement scheme totalling RMB797,000 (2000: RMB835,000). 34. RELATED PARTY TRANSCATIONS (i) During the year, the Group entered into the following transactions and balances with related parties : For the year ended 31 December Trade sales Trade purchase Amount due therefrom Amount due thereto 2001 2000 2001 2000 2001 2000 2001 2000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Shenzhen Investment Administrative Company - - - - - - 37,468 37,157 Associates 15,705 13,007 28,463 44,479 7,726 2,976 41,656 3,265 45 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2001 - continued 34. RELATED PARTY TRANSACTIONS - continued As disclosed in note 29 of the notes to the accounts, the Group had given guarantees for banking facilities granted to Lionda. During the year, one of the lending banks had taken legal actions requesting the Group to undertake the joint and several liabilities in respect of the guarantees given of RMB8,000,000. According to the final agreement with the bank, during the year, the Group had paid the principal sum of RMB8,000,000 together with the associated interest of RMB2,000,000 due by Lionda for full and final settlement of the claim. As at 31 December 2001, the amount due by Lionda was RMB6,073,000 after partial settlement, full provision has been made for this amount. 35. IMPACT OF IAS ADJUSTMENTS ON PROFIT ATTRIBUTABLE TO SHAREHOLDERS AND ON NET ASSETS Profit attributable to shareholders Net Assets 2001 2000 2001 2000 RMB’000 RMB’000 RMB’000 RMB’000 (As restated) (As restated) Under PRC accounting standards :- 25,202 22,831 303,645 278,438 Adjustments to conform with IAS: Amortization of negative goodwill 567 567 - - Overprovision for depreciation of investment properties 2,346 2,346 13,452 11,106 Written off of pre-operating expenses (2,410) 2,410 - 2,410 Impairment loss on unconsolidated subsidiaries (2,854) - (2,854) - Underprovision for loss of subsidiaries in previous year (505) (1,281) (1,786) (1,281) Written off of intangible assets 788 (6,050) (5,262) (6,050) Provision for bad debts 5,075 (5,075) - (5,075) Others (10) - - 15 As restated in conformity with IAS 28,199 15,748 307,195 279,563 36. COMPARATIVE FIGURES Certain comparative figures have been reclassified so as to conform with the current year’s presentation. 46