京粮控股(000505)*ST珠江Ｂ2003年年度报告摘要（英文版）

HAINAN PEARL RIVER HOLDINGS CO., LTD. SUMMARY OF ANNUAL REPORT 2003 §1. Important Notes 1.1 Board of Directors of Hainan Pearl River Holdings Co., Ltd. (hereinafter referred to as the Company) and its directors individually and collectively accept responsibility for the correctness, accuracy and completeness of the contents of this report and confirm that there are no material omissions nor errors which would render any statement misleading. The summary of annual report 2003 is abstracted from the full text of annual report; the investors are suggested to read the full text of annual report to understand more details. 1.2 Director Tan Shuguang entrusted Director Zheng Qing to attend the Board meeting and vote on his behalf. 1.3 Mr. Zheng Qing, Chairman of the Board as well as General Manager, Mr. Chen Binglian, Deputy General Manager as well as Chief Financial Officer, hereby guarantee that the financial report enclosed in this Annual Report 2003 is true and complete. §2. Company Profile 2.1 Basic information Short form of the stock *ST Pearl River, *ST Pear River B Stock code 000505, 200505 Listed stock exchange Shenzhen Stock Exchange Registered address and office address 29/F, Royal Empire Building, Pearl River Plaza, Binhai Avenue, Haikou Post code 570125 Internet web site of the Company Naught E-mail of the Company hnpearl@public.hk.hi.cn 2.2 Contact person and method Secretary of the Board of Representative in charge of Directors Securities Affairs Name Feng Pai Gu Lirong Contact address 29/F, Royal Empire Building, Pearl 29/F, Royal Empire Building, River Plaza, Binhai Avenue, Pearl River Plaza, Binhai Avenue, Haikou Haikou Telephone (86)898-68581888 ext. (86)898-68581888 ext. Fax (86)898-68581026 (86)898-68581026 E-mail hnpearl@public.hk.hi.cn hnpearl@public.hk.hi.cn §3. Summary of Accounting Data and Financial Indexes 3.1 Major accounting data Unit: RMB Increase/decrease 2003 2002 2001 over last year（％） 1 Income from main operations 129,561,020 91,008,755 42.36 91,705,847 Total profit -1,482,336 -140,462,535 -50,828,884 Net profit 1,629,184 -137,499,128 -39,149,574 Net profit after deducting -14,620,656 -132,518,891 -20,252,670 non-recurring gains and losses Increase/decrease At the end of At the end of At the end of from the end of 2003 2002 2001 previous year（％） Total assets 699,838,932 663,838,276 5.42 715,376,924 Shareholder’s equity (excluding 250,895,785 251,348,071 -0.18 389,230,308 minority interests) Net cash flow arising from -2,065,568 -28,296,825 -17,591,817 operating activities 3.2 Major financial indexes Unit: RMB Increase/decrease over 2003 2002 2001 last year（％） Earnings per share 0.004 -0.364 -0.104 Return on equity (%) 0.65 -54.70 -10.06 Return on equity calculated based on net -5.822 -41.375 -4.920 profit after deducting non-recurring gains and losses (%) Net cash flow per share arising from -0.005 -0.075 -0.047 operating activities Increase or decrease At the end At the end At the end from the end of of 2003 of 2002 of 2001 previous year（％） Net assets per share 0.664 0.6666 -0.30 1.031 Net assets per share after adjustment 0.601 0.610 -1.475 0.950 3.3 Difference in net profit as audited by Chinese Accounting Standard (CAS) and International Accounting Standard (IAS) √Applicable □Inapplicable Impact of IFRS and Other Adjustments on Profit/(Loss) for the Year and Net Assets: Profit/(Loss) for the Net assets as at year ended 31 December 31 December 2003 2002 2003 2002 RMB'000 RMB'000 RMB'000 RMB'000 2 As reported in statutory accounts As previously reported 1,629 (138,051) 250,895 251,348 Opening balances adjustment - Interest received from related parties capitalised in capital reserve now - 552 - - reversed As restated 1,629 (137,499) 250,895 251,348 Impact of IFRS and other adjustments - reversal of opening balances adjustment - (552) - - - adjustment on capitalisation of interest charges arising from borrowings used to finance the properties under development during the construction period and corresponding depreciation 931 5,268 (4,788) (5,719) - reversal of adjustment on capitalisation of interest charges arising from borrowings used to finance the properties under development during the construction period now disposed of 4,788 - 4,788 - - unrecognised losses of consolidated subsidiaries (2,445) (626) - - - reversal of capital reserve arising from transfer of construction in progress from the Company to a subsidiary as capital injection - - (363) - - goodwill on acquisition of an associate recorded as bad debts under IFRS (3,059) - (3,059) - - provision for bad and doubtful debts - - (14,600) (14,600) - adjustment on treasury stock - - (1,410) (1,410) - excess interest income from a related company recognised as capital reserve in PRC statutory accounts now adjusted as - 795 - - 3 income for the year - share of accumulated losses of an investee company classified as an associate in last year now adjusted as share of loss from associates in last year - (1,253) - - - adjustment to income from an associate - - (9,929) (9,929) - others 872 80 (526) (1,398) As restated for the Group 2,716 (133,787) 221,008 218,292 §4. Changes in Share Capital and Particulars about Shareholders 4.1 Statement of change in share (Unit: share) Amount at the Amount at the period-begin period-end I. Non-circulating shares 1. Sponsors’shares Including: Domestic legal person’s shares 206,744,976 206,744,976 2. Inner employees’shares Total non-circulating shares 206,744,976 206,744,976 II. Circulating shares 1. Domestically RMB ordinary shares 113,405,824 113,405,824 2. Domestically listed foreign shares 57,500,000 57,500,000 Total circulating shares 170,905,824 170,905,824 III. Total shares 377,650,800 377,650,800 4.2 Statement of shares held by the top ten shareholders 50403 shareholders of A-share and 11231 shareholders of Total number of shareholders at the end of report year B-share Particulars about shares held by the top ten shareholders Number of Increase / Shares held Type of shares share decrease in at the Proportion Nature of Full name of Shareholders (Circulating/No pledged/ the report year-end (%) shareholders n-circulating) frozen year (share) (share) (share) Beijing Wanfa Real Estate 0 112,628,976 29.82 Non-circulating 0 Legal person Development Co., Ltd. shareholder Guangzhou Lishengde Investment 0 17,000,000 4.50 0 Legal person Non-circulating Co., Ltd. shareholder 4 Henglong International Co., Ltd. 0 13,570,000 3.59 13,570,000 Legal person Non-circulating shareholder Shanghai Central South Investment 0 11,000,000 2.91 0 Legal person Non-circulating and Management Co., Ltd. shareholder Hainan Development Bank Haikou 0 7,820,000 2.07 0 Legal person Non-circulating Branch shareholder Hebei Securities Co., Ltd. 0 5,750,000 1.52 0 Legal person Non-circulating shareholder Guangzhou Pearl River Foreign 0 4,896,000 1.30 0 Legal person Capital Contraction Design Institute, Non-circulating shareholder Hainan Branch Ping An Insurance Company Of 0 3,450,000 0.91 0 Legal person Non-circulating China, Ltd. shareholder Hainan Yueyin Science and 0 2,660,000 0.70 0 Legal person Non-circulating Technology Co. Ltd. shareholder Shenzhen Gintian Industrial Co., Ltd. 0 2,300,000 0.61 2,300,000 Legal person Non-circulating shareholder Explanation on associated Among the top ten shareholders, there existed no associated relationship relationship among the top ten between the first largest shareholder and the other shareholders, and it didn’t shareholders or consistent action belong to the consistent actionist regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Companies with the other shareholders. For the other shareholders, the Company is unknown whether there exists associated relationship, or whether the rest shareholders belong to the consistent actionist regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Companies. Particulars about shares held by the top ten shareholders of circulating share Name of shareholder Number of circulation shares Type (A-share, B-share, held at the year-end H-share or other) ZHAO SHU ZHEN 865,300 A-share QIU LAN ZHEN 459,100 A-share ZHANG HUI LONG 397,430 A-share CAO JI ZHEN 267,000 A-share CHAI LING YAN 241,241 A-share BAI JUN MEI 229,000 A-share GAO LEI 225,100 A-share CHENG GUO 223,350 A-share ZHANG LI HONG 221,409 A-share TIAN YONG QIN 215,800 A-share Explanation on associated Among the above top ten shareholders of circulation share, the relationship among the top Company is unknown whether there exists associated relationship, ten shareholders of and whether they belong to the consistent actionist regulated by the circulation share Management Measure of Information Disclosure on Change of Shareholding for Listed Companies or not. 5 4.3 Particulars about controlling shareholders and actual controller of the Company 4.3.1 Particulars about change in controlling shareholders and actual controller of the Company □Applicable √Inapplicable 4.3.2 Introduction of especial situation for controlling shareholder and other actual controller Beijing Wanfa Real Estate Development Co., Ltd. (“Wanfa Real Estate”), the first largest shareholder of the Company, was established in Nov. 1995, with registered capital: RMB 280 million, legal representative: Meng Qiao, main business: development and operation of real estate. As a joint-stock company, its major shareholders are Beijing Xinxing Real Estate Development General Company, Beijing Jiaheng Taishi Industrial Co., Ltd., Beijing Shengcai Science and Trade Co., Beijing Jiuzhu Property and Management Co., Ltd. and Beijing Yitai Co. The actual controller of the Company’s controlling shareholder, Beijing Xinxing Real Estate Development General Company (“Xinxing Real Estate”) is one of the shareholders of Beijing Wanfa Real Estate Development Co., Ltd., who established in 1992 with registered capital of RMB 10 million and legal representative: Zheng Qing. The said company is principally engaged in the development and operation of real estate as a collective enterprise. §5. Particulars About Directors, Supervisors and Senior Executives 5.1 Particulars about changes in shares held by directors, supervisors and senior executives Name Title Sex Age Office Shares held Shares held Reason for term at the at the change year-begin year-end Zheng Qing Chairman of the Board / Male 37 Sep. 2002- 25000 25000 Naught General Manager Sep. 2005 Peng Shuyin Director Male 46 Sep. 2002- 0 0 Naught Sep. 2005 Wu Xiaojing Director Male 52 Sep. 2002- 0 0 Naught Sep. 2005 Shi Yonghui Director Male 39 Sep. 2002- 0 0 Naught Sep. 2005 Zhang Jian Director Male 50 Sep. 2002- 0 0 Naught Sep. 2005 Tan Shuguang Director Male 33 Sep. 2002- 0 0 Naught Sep. 2005 Wang Zhigang Independent Director Male 44 Sep. 2002- 0 0 Naught Sep. 2005 Yang Kaijun Independent Director Male 47 Sep. 2002- 0 0 Naught Sep. 2005 Zhang Taowei Independent Director Male 40 Sep. 2002- 0 0 Naught Sep. 2005 6 Sun Xianli Convener of Male 57 Sep. 2002- 0 0 Naught Supervisory Committee Sep. 2005 She Jianhui Supervisor Female 50 Sep. 2002- 0 0 Naught Sep. 2005 Xu Jingui Supervisor Male 34 Sep. 2002- 0 0 Naught Sep. 2005 Feng Pai Deputy General Male 40 Apr. 2003- 0 0 Naught Manager Apr. 2006 Chen Binglian Deputy General Male 44 Apr. 2003- 0 0 Naught Manager Apr. 2006 Zhu Biqing Deputy General Female 35 Apr. 2003- 0 0 Naught Manager Apr. 2006 Cui Zhongwei Deputy General Male 46 Apr. 2003- 0 0 Naught Manager Apr. 2006 5.2 Particulars about directors and supervisors holding the post in Shareholding Company √Applicable □Inapplicable Drawing the payment Name of Shareholding Title in Shareholding Name Office term from the Company Company Company (Yes / No) Beijing Wanfa Real Estate Zheng Qing Director Jun. 1999 to now Yes Development Co., Ltd. Beijing Wanfa Real Estate Shi Yonghui Deputy General Manager Jul. 1993 to now No Development Co., Ltd. Guangzhou Lishengde Zhang Jian Chairman of the Board Aug. 2000 to now No Investment Co., Ltd. Hainan Yueyin Science and Tan Shuguang General Manager May 2001 to now No Technology Co. Ltd. 5.3 Particulars about the annual payment of directors, supervisors and senior executives Total annual payment RMB 790,000 Total annual payment of the top three directors Naught (one director drew the remuneration from the drawing the highest payment Company because he concurrently took the post of General Manager of the Company.) Total annual payment of the top three senior RMB 490,000 executives drawing the highest payment Allowance of independent director Naught Other treatment of independent directors Naught Name of directors and supervisors receiving no Director: Peng Shuyin, Wu Xiaojing, Shi Yonghui, Zhang payment or allowance from the Company Jian and Tan Shuguang Independent Director: Wang Zhigang, Yang Kaijun and 7 Zhang Taowei Supervisor: Sun Xianli, She Jianhui Range of payment Number of persons RMB 150,000 ～ RMB 250,000 1 RMB 100,000 ～ RMB 150,000 4 RMB 50,000 ～ RMB 100,000 1 §6. Report of the Board of Directors 6.1 Discussion and analysis of the whole operation in the report period 1. In 2003, Wuhan project has achieved the confirmation of land transaction, orientation of project market, submittal and approval of design and layout and registration of road, etc., prophase preparation of project development was in order basically. 2. Sanya Wanjia Holiday Inn entered into the phase of decoration with the pre-selling procedure of villas under dealing. 3. The Company started to conduct the whole programming and submittal and approval work of registration in the project of Hainan Jianfengling Tourism Holiday Zone. 4. The Company gained the certain investment income through transferring the equity of Hainan Pearl River Tubular Pile Co., Ltd., which insured the Company to turn losses into profits in 2003. 5. Pearl River Property Company gave play to brand advantage, expanded comprehensive property management area with breakthrough of a million square meters, the operation scale and management level strode new step. 6.2 Statement of core business classified according to industries or products Unit: RMB Classified according to Income from Cost of main Gross Increase/ Increase/ Increase/ industries or products main operations profit decrease of decrease of decrease of operations ratio income from cost of main gross profit (%) main operations operations ratio compared with compared compared the previous with the with the year (%) previous year previous (%) year (%) Income from sales of 11,789,924.86 9,818,306.12 16.72 3,962.26 659.19 real estate Income from property 10,453,147.29 8,066,370.58 22.83 19.50 26.81 -16.31 management Income from 99,470,379.57 71,170,891.57 28.45 29.71 11.40 70.46 proceeding and building 6.3 Particulars about core business classified according to areas Unit: RMB 8 Areas Income from main operations Increase/decrease of income from main operations compared with the previous year (%) Hainan 116,897,388 29.89 Shanghai 10,970,775 987.62 6.4 Particulars about the customers of purchase and sales Total amount of purchase of 19,360,000 Proportion in the total 37.85% the top five suppliers amount of purchase Total amount of sales of the 41,100,000 Proportion in the total 31.32% top five sales customers amount of sales 6.5 Operation of share-holding companies (applicable to the situation of investment earnings’taking over 10% of net profit) □Applicable √Inapplicable 6.6 Explanation of reason of material change of main operations and its structure □Applicable √Inapplicable 6.7 Explanation of reason of material change of profitability capability of main operations (gross profit ratio) compared with the previous year □Applicable √Inapplicable 6.8 Analysis of reason of material change of operating results and profit structure compared with the previous year √Applicable □Inapplicable Unit: RMB Items Jan.-Dec. 2003 Jan.-Dec.2002 Increase/decrease (%) Income from main operations 129,561,020 91,008,755 42.36 Profit from main operations 32,129,557 14,289,597 124.85 Net profit 1,629,184 -137,499,128 Net increase of cash and cash equivalents 43,449,341 -16,341,383 Investment earnings 7,605,302 -55,168,915 Main reasons for change: Increase in income and profit from main operations was because the income and profit from proceeding and building and from sales of real estate has increased by a big margin. Analysis of reason of material change of the whole financial position compared with the previous year □Applicable √Inapplicable 6.9 Explanation of the past, current and future important effects of the material change of production and operation environment, macro-policies and regulations on the 9 Company’s financial position and operating results □Applicable √Inapplicable 6.10 Completion of the profit estimation □Applicable √Inapplicable 6.11 Completion of the business plan □Applicable √Inapplicable 6.12 Application of the raised proceeds □Applicable √Inapplicable Particulars about the change projects □Applicable √Inapplicable 6.13 Application of the proceeds non-raised through share offering √Applicable □Inapplicable Name of project Amount of project Progress of project Earning of project Sanya Wanjia Junhua Holiday Inn RMB 17.88 million Decoration engineering Naught Wuhan Real Estate Project RMB 31.68 million Land transfer Naught 6.14 Explanation of the “Qualified Opinion”of Certified Public Accountants by the Board of Directors □Applicable √Inapplicable 6.15 Business plan as of the new year of the Board of Directors √Applicable □Inapplicable 1. In 2004, the Company’s development of real estate will have a breakthrough, accomplish starting working and sales in the project of Wuhan project at an early date. The Company’ s important source of profit in future is that the said project entered into rolling development. 2. Attach greater importance on engineering progress of Sanya Wanjia Hotel, ensure the construction quality and try to bring it into trial operation as soon as possible. 3. Continue to make the prophase layout working of Hainan Jianfengling Tourism Resort project, and lay a solid foundation for long-term development of the Company. 4. Reinforce the management of investment controlling companies and the secondary companies, and promote improvement of economic benefit. Profit estimation of the new report year □Applicable √Inapplicable 6.16 The preplan of the profit distribution and capitalization of capital public reserve of the Board of Directors In the report period, the Company would conduct neither profit distribution nor converting capital reserve into share capital. 10 §7. Significant Events 7.1 Purchase of assets □Applicable √Inapplicable 7.2 Sales of assets √Applicable □Inapplicable Contribution to net profit of the Related transaction Transaction parties and the Date of Company of the Gains or losses or not (if yes, Sale price assets sold sale assets sold from the from sale explain pricing year-begin to the principle) date of sale One Fortune Group Pte. Ltd. Hainan Pearl River Tubular Dec. 31, RMB 50 RMB 13.1 RMB 21.01 million No Pile Co., Ltd. 2003 million million 98.76% equity Note: The Company is engaged in the development and management of real estate, so it is no impact on the continuity of the Company’s business and stability of management team. 7.3 Significant guarantee □Applicable √Inapplicable 7.4 Current related credits and liabilities √Applicable □Inapplicable Unit: RMB’0000 Funds provided to listed company by Funds provided to related party Related parties related parties Amount occurred Balance Amount occurred Balance Beijing Xinxing Real Estate 5150 5867 Development General Company Hainan Longzhu Shunda -276 549 Entertainment Co., Ltd. Guangzhou Lishengde 0 440 Investment Co., Ltd. Shanghai Sea Pearl Property 20 129 Co., Ltd Total -256 1118 5150 5867 7.5 Entrusted financing □Applicable √Inapplicable 7.6 Implementation of projects committed □Applicable √Inapplicable 11 7.7 Significant lawsuits and arbitrations √ Applicable □ Inapplicable The case on the Company prosecuted Hainan Zhongkexin Industrial Development Co., Ltd. and Hainan Overseas Chinese Commerce Co., Ltd. to pay the arrears for purchase of houses and overdue default fine, in the report period, Haikou Municipal Intermediate People’ s Court issued the judgment, which judged Hainan Zhongkexin Industrial Development Co., Ltd. to pay the rest arrears for purchased of houses amounting to RMB 9.4 million and overdue default fine amounting to RMB 1.15 million. Hainan Zhongkexin Industrial Development Co., Ltd. did neither appeal to the court in the legal term nor perform efficient judgment. The Company has applied for enforcement in the last ten-day of October 2003, but it was no executive results in the report period. The said event was published on Securities Times dated Nov. 20, 2003. 7.8 Particulars about the performance of obligations of Independent Directors The Company timely engaged independent directors according to the Guiding Opinions on the Establishment of Independent Director System in Listed Companies with the number of independent directors being one third of the total members of the Board. In addition, the Company specified the independent director system in the Articles of Association. The independent directors performed their power and duties with due diligence and played a good role as independent directors. Independent directors expressed their independent opinion on the engagement of senior executives and sales of material assets. §8. Report of the Supervisory Committee The Supervisory Committee believed that the Company operated according to laws and there existed no problems in financing, purchase and sale of material assets of the Company. §9. Financial Report 9.1 Auditors’Opinion To the members of Hainan Pearl River Holding Company Limited (incorporated in the People's Republic of China with limited liability) We have audited the financial statements of Hainan Pearl River Holding Company Limited (the "Company") and its subsidiaries (the "Group") for the year ended 31 December 2003 on pages 2 to 25 which have been prepared in accordance with International Financial Reporting Standards as promulgated by the International Financial Reporting Standards Board. The financial statements are the responsibility of the Company'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 issued by the International Federation of Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial 12 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 princip les used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion the financial statements give a true and fair view of the state of the Group's affairs as at 31 December 2003 and of the Group's profit and cash flows for the year then ended. Grant Thornton Certified Public Accountants Hong Kong 9.2 Notes to accounting statement 1. Compared with the latest annual report, there is no change in accounting policy, accounting estimate and calculation method. 2. Compared with the latest annual report, the Company’ s consolidated scopes newly add Beijing Baili Network Co., Ltd., while no longer consolidate balance sheet as at the year-end of Hainan Pearl River Tubular Pile Co., Ltd.. 9.3 Accounting statement (Attached hereafter) Board of Directors of Hainan Pearl River Holdings Co., Ltd. April 18, 2004 Consolidated statement of income For the year ended 31 December 2003 Notes 2003 2002 RMB'000 RMB'000 Turnover 6 129,561 91,009 Cost of sales (97,180) (76,776) Gross profit 32,381 14,233 Other income 7 1,856 8,957 Gain on disposal of a subsidiary 18,158 - Selling, general and administrative expenses (25,050) (36,502) Written back/(Provision) for diminution in value of properties held for sale 2,276 (29,994) 13 Provision for doubtful debts (5,221) (20,353) Provision for diminution in value of long term investments (332) (49,323) Profit/(Loss) from operations 24,068 (112,982) Net finance costs 8 (18,748) (14,904) Loss from associates (3,310) (8,295) Profit/(Loss) before taxation 9 2,010 (136,181) Taxation 10 - - Profit/(Loss) before minority interests 2,010 (136,181) Minority interests 706 2,394 Profit/(Loss) for the year 28 2,716 (133,787) Profit/(Loss) per share (RMB Fen) 11 0.72 (35.43) 14 Consolidated balance sheet As at 31 December 2003 Notes 2003 2002 RMB'000 RMB'000 ASSETS AND LIABILITIES Non-current assets Property, plant and equipment 12 89,772 84,621 Long term investments 13 154,509 156,523 Intangible assets 14 13,825 12,938 258,106 254,082 Current assets Properties held for sale 15 264,474 230,892 Inventories 16 636 3,038 Trade and other receivables 17 81,627 107,135 Amounts due from associates 3,914 6,694 Amounts due from investee companies - 11,443 Amount due from a related company 4,180 4,180 Cash at banks and in hand 58,692 15,243 413,523 378,625 Current liabilities Bank loans 18 93,570 125,035 Short term loans 19 167,000 15,000 Trade and other payables 20 131,338 108,332 Amounts due to associates 2,352 852 Amounts due to investee companies 226 - Loan from a related company 21 46,670 7,170 Dividends payable 3,213 3,213 444,369 259,602 Net current (liabilities)/assets (30,846) 119,023 Non-current liabilities Long term loans 22 - 152,000 Minority interests 6,252 2,813 Net assets 221,008 218,292 15 CAPITAL AND RESERVES Share capital 23 377,651 377,651 Reserves 24 (156,643) (159,359) Shareholders’funds 221,008 218,292 Consolidated cash flow statement For the year ended 31 December 2003 2003 2002 RMB'000 RMB'000 Cash flows from operating activities Profit/(Loss) before taxation 2,010 (136,181) Adjustments for : Depreciation 7,960 8,506 Provision for doubtful receivables 5,221 20,353 Permanent diminution in value of long term investments 332 49,323 (Written back)/Provision for properties held for sale (2,276) 29,994 Loss from associates 3,310 8,295 Gain on disposal of investment in a long term - (2,730) investment/an associate Gain on disposal of a subsidiary (18,158) - (Gain)/Loss on disposal of property, plant and (335) 610 equipment Written off of inventories - 746 Amortisation of intangible assets 1,674 1,854 Interest income (763) (1,581) Interest expense 19,511 16,485 Operating profit/(loss) before working capital changes 18,486 (4,326) Increase in trade and other receivables (6,901) (63,038) (Increase)/Decrease in properties held for sale (20,101) 1,072 (Increase)/Decrease in inventories (6,279) 3,709 Decrease in amount due from an unconsolidated - 92 subsidiary Decrease in amounts due from associates 2,780 1,791 Decrease in amounts due from investee companies - 10,191 Increase in amount due from a related company - (4,180) Increase in trade and other payables 35,630 44,256 16 Increase/(Decrease) in amount due to an associate 1,500 (169) Increase in amounts due to investee companies 226 - Increase in amount due to a related company - 6,670 Cash generated from/(used in) operations 25,341 (3,932) Interest paid (7,159) (16,485) Net cash generated from/(used in) operating activities 18,182 (20,417) Cash flows from investing activities Proceeds from disposal of property, plant and equipment 2,246 501 Acquisition of a subsidiary net of cash acquired (see note (6,335) - 26) Disposal of a subsidiary net of cash disposed of (see note 13,679 (18) 27) Increase in long term investments (225) (12,950) Purchases of property, plant and equipment (22,896) (42,020) Interest received 763 1,581 Net cash used in investing activities (12,768) (52,906) Cash flows from financing activities Bank loans repayment (4,465) - New bank loans taken out 3,000 17,100 New long term loans taken out - 40,000 Increase in loan from a related company 39,500 - Decrease in minority interests - (118) Net cash generated from/(used in) financing activities 38,035 56,982 Increase/(Decrease) in cash 43,449 (16,341) Cash at beginning of year 15,243 31,584 Cash at end of year 58,692 15,243 17