深基地Ｂ(200053)2007年年度报告摘要（英文版）

Stock code: 200053 Short form: Chiwan Base -B Serial number:2008-06 SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD. THE ABSTRACT OF ANNUAL REPORT 2007 Part 1 Important Notice 1.1 The directors, supervisors and senior managers guarantee that there exists no omission, misstatement, or misleading information in this annual report. The directors, supervisors and senior managers are responsible, individually and jointly, for the authenticity, accuracy and integrity of the information herein. This abstract of annual report is extracted from the full text of annual report 2007 which published on www.cninfo.com.cn simultaneously. Investors should read the full text carefully for the details. The Interim Report is written in both Chinese and English. In case of conflict between the two versions, Chinese version shall prevail. 1.2 All directors attended the Board meeting. 1.3 PricewaterhouseCoopers presented audit report with standard and non-reserved opinion for the Company. 1.4 The Chairman, Mr. Han Guimao, the Financial Controller, Mr. Huang Fanzhi, and the Financial Manager, Mdm. Yu Zhongxia, confirm that there exists no omission, misstatement, or misleading information on the financial results of this report. Part 2 Profile of the Company Stock Series Chiwan Base -B Stock Code 200053 Stock Exchange Shenzhen Stock Exchange Registration Address Chiwan, Shekou, Shenzhen, PRC Company Secretary Securities Representative Name Mr. Fu Jialin Mr. Song Tao 14th Floor of Chiwan Petroleum 14th Floor of Chiwan Petroleum Address Building, Chiwan, Shenzhen, PRC Building, Chiwan, Shenzhen, PRC Zip Code 518068 518068 Telephone 0755-26694211 0755-26694211 Fax 0755-26694227 0755-26694227 E-mail Address sa@chiwanbase.com sa@chiwanbase.com 1 Part 3 Financial Highlights 3.1 Main Accounting Data Currency: RMB Increase/decre 2007 2006 2005 ase（％） Before After After Before After adjustment adjustment adjustment adjustment adjustment Revenue 233,589,293 194,705,759 194,905,934 19.85% 164,468,106 164,610,056 Profit before tax 121,334,080 146,006,434 149,009,457 -18.57% 124,452,763 125,487,317 Net profit 112,170,424 136,256,670 139,259,693 -19.45% 114,725,739 115,760,293 Net profit after deducting 112,486,304 136,552,196 140,042,077 -19.68% 114,760,316 115,794,870 non-recurring gains&losses Net cash flows from 155,310,359 107,725,133 107,725,133 44.17% 107,404,321 107,128,522 operating activities Increase/decre End of 2007 End of 2006 End of 2005 ase（％） Before After After Before After adjustment adjustment adjustment adjustment adjustment Total assets 1,694,964,593 1,280,440,102 1,284,606,108 31.94% 942,236,964 943,261,929 Shareholders’ equity 856,548,016 810,364,166 814,177,465 5.20% 741,389,481 742,414,446 3.2 Main Financial Indices Currency: RMB Increase/decre 2007 2006 2005 ase（％） Before After After Before After adjustment adjustment adjustment adjustment adjustment EPS 0.49 0.59 0.60 -18.33% 0.54 0.54 Diluted EPS 0.49 0.59 0.60 -18.33% 0.50 0.50 EPS after deducting non-recurring 0.49 0.59 0.61 -19.67% 0.50 0.50 gains&losses Fully diluted ROE 13.10% 16.81% 17.10% -4.00 percent 15.47% 15.59% Weight average ROE 13.52% 17.67% 17.96% -4.44 percent 16.39% 16.52% Fully diluted ROE after deducting of 13.13% 16.85% 17.20% -4.07 percent 15.48% 15.60% non-recurring gains & loses Weight average ROE after deducting of 13.56% 17.73% 18.06% -4.50 percent 16.43% 16.52% non-recurring gains & loses 2 Net cash flows per share from operating 0.67 0.47 0.47 42.55% 0.47 0.46 activities Increase/decre End of 2007 End of 2006 End of 2005 ase（％） Before After After Before After adjustment adjustment adjustment adjustment adjustment Shareholders’ equity 3.71 3.51 3.53 5.20% 3.19 3.22 per share Items included in the non-recurring gains and loses √ Applicable □ Inapplicable Currency: RMB RMB 1. Net loss from disposal of fixed assets 90,606 2. Net gains from other non-operating activities -478,219 4. Variance on Income tax from non-operating profit 71,733 Total -315,880 3.3 The impact of IFRS adjustments on the PRC statutory financial statements □Applicable √ Inapplicable Part 4 Shares Change and Shareholders 4.1 Shares Change (Unit: share) Change in number of shares Before Conversion of After change Share Bonus reserves Others Subtotal change allotment shares to shares 1. Nontradable shares a. Promotors’ shares including State owned shares Ownership by Domestic legal entities 119,420,000 119,420,000 Ownership by Foreign legal entities Others 3 b. Shares raised from legal entities c. Employee’s shares d. Preferred shares Total 119,420,000 2. Tradable shares 119,420,000 a. A shares b. B shares 111,180,000 c. Shares traded in Overseas’ 111,180,000 Market d. Others 111,180,000 Total 111,180,000 3. Total of shares 230,600,000 230,600,000 4.2 Top ten shareholders and top ten tradable shareholders Total number of shareholders 7,679 Holding information of top ten shareholders Ratio Un-tradable Impawned or Name（full name） Character Shares （％） shares frozen CHINA NANSHAN DEVELOPMENT Domestic legal (GROUP) INCORPORATION 51.79 119,420,000 119,420,000 0 entity owned OFFSHORE JOINT SERVICES(BASES) Foreign investment CO. OF SGP. PTE LTD 22.19 51,180,000 0 shareholder GUOTAI JUNAN SECURIES Other 1.72 4,017,437 Unknown HONG KONG LIMITED LIN XI Other 0.75 1,739,000 Unknown SHANGHAI NO1 SECURITIES CO Other 0.48 1,108,100 Unknown DBS VICHERS(HK)LTD A/C 0.43 Other 1,000,000 Unknown CLIENTS ZHONGXIN SECURITIS (HK) CO Other 0.32 748,825 Unknown MORGAN STANLEY & CO 0.32 Other 747,243 Unknown INTERNATIONAL PLC LIN QIAO CHAI Other 0.32 735,700 Unknown HE JING LIN Other 0.29 657,400 Unknown Holding information of top ten tradable shareholders Name（full name） shares Type（A、B、H or other） OFFSHORE JOINT SERVICES(BASES) CO. OF SGP. PTE LTD 51,180,000 B GUOTAI JUNAN SECURIES HONG 4,017,437 B KONG LIMITED 4 LIN XI 1,739,000 B SHANGHAI NO1 SECURITIES CO 1,108,100 B DBS VICHERS(HK)LTD A/C CLIENTS 1,000,000 B ZHONGXIN SECURITIS (HK) CO 748,825 B MORGAN STANLEY & CO 747,243 B INTERNATIONAL PLC LIN QIAO CHAI 735,700 B HE JING LIN 657,400 B WANG JUN GANG 502,390 B Among the top ten shareholders, the domestic legal entity shareholder China Nanshan Development (Group) Incorporation has no affiliated relations with other shareholders and does not fall Explanation for the Affiliated Relations or into the scope of united action person stipulated by “Regulation of United Action of the Top Ten Shareholders Information Disclosure of the Change of Shareholding of listed company”. It is unknown that whether other tradable-share shareholders fall into the scope of united action person. 4.3 Profiles of Major Legal Entity Shareholders 4.3.1 Changes of holding shareholders □ Applicable √ Inapplicable 4.3.2 Profiles of holding shareholder and its shareholders Holding shareholder: China Nanshan Development (Group) Incorporation (CNDI) Legal representative: Fu Yuning Date of registration: October 1982 Registered Capital: RMB 500 million Business scope: land development; port transportation, industrial, commercial, real estate and tourism; customs bonded warehouses business; etc. Shareholders of Holding Shareholder (above 5%) (1)China Merchants Holdings (International) Co Ltd Legal representative: Fu Yuning Date of registration: May 1991 Registered Capital: HKD 500 million Business scope: Investment and holdings, a company listed in HK Stock Exchange (2)Shenzhen Investment Holding Co Ltd Legal representative: Chen Hongbo Date of registration: Oct 2004 Registered Capital: RMB 4.6 billion (3)Guangdong Petro-trade Development Corp Legal representative: Chen Qiang Date of registration: Sep 1993 Registered Capital: RMB 4.6 billion (4)China National Offshore Oil Co Legal representative: Fu Chengyu Date of registration: Sep 1993 Registered Capital: RMB 94.9 billion 5 4.3.3 Controlling graph State-Owned Assets Supervisory and Administration Commission 100％ 100% China Merchants Group Shenzhen Guangdong CNOOC 55 766％ SASAC SASAC 100％ 100％ 100％ China Merchants Holdings (International) Co Ltd China Silver Shenzhe Guangd CNOO China Clifford Flow n ong C Wang Mercha Co Ltd Investm Petro-tr Investm Ocean Investm nts ent ade ent Oilfield ent Ltd Holding Develop Holding (Nansha Co Ltd ment Co Ltd s n) Corp Services Holding 23.49% (H.K.) 0.50% 26.10% 7.83% 3.92% Ltd Ltd China Nanshan Development (Group) Incorporation 51.79% 48.21% Tradable Shenzhen Chiwan Petroleum Supply Base Shareholders Co Ltd (B share) 6 PART 5 Directors, Supervisors and Senior Managers 5.1 Brief information Name Position Gender Age Office Term Han Guimao Chairman Male 57 2007.5—2010.5 Stephen·Stanley Vice Chairman Male 49 2007.5—2010.5 Fong Yue Kwong Director Male 55 2007.5—2010.5 Wang Fen Director Female 53 2007.5—2010.5 Yuan Yuhui Director Male 57 2007.9—2010.5 Cui Wei Director/General Manager Male 51 2007.5—2010.5 Director/Deputy 40 Huang Fanzhi Male DM/Financial Controller Lin Shaodong Independent Director Male 62 2007.5—2010.5 Zhang Limin Independent Director Male 52 2007.5—2010.5 Zhou Chengxin Independent Director Male 53 2007.5—2010.5 Cui Zhongfu Independent Director Male 46 2007.9—2010.5 Liu Fu Supervisor (Convenor) Male 62 2007.5—2010.5 Fan Zhaoping Supervisor Male 54 2007.5—2010.5 Guo Songhua Supervisor Female 50 2007.5—2010.5 Liu Wei Employee Supervisor Male 42 2007.5—2010.5 Ye Sengsheng Employee Supervisor Male 31 2007.5—2010.5 Ren Yongping Deputy GM Male 55 2004.4—2009.5 Huang Donger Deputy GM Male 56 2002.5—2009.5 Fu Jialin Board Secretary Male 46 2002.5—2009.5 Brief information (continued) Shares held Shares held Whether receiving Total remuneration Name at the at the remuneration from shareholder (RMB’0000) year-begin year-end or other relative companies Han Guimao 10000 10000 yes Stephen·Stanley yes Fong Yue Kwong yes Wang Fen 10000 10000 yes Yuan Yuhui yes Cui Wei 61.72 no Huang Fanzhi 55.58 no 7 Lin Shaodong 4.00 no Zhang Limin 4.00 no Zhou Chengxin 4.00 no Cui Zhongfu 2.00 no Liu Fu yes Fan Zhaoping 11600 11600 yes Guo Songhua yes Liu Wei 33.09 no Ye Sengsheng 21.31 no Ren Yongping 10000 10000 47.89 no Huang Donger 42.59 no Fu Jialin 33.89 no Total 41600 41600 310.07 - The Company hasn’t the stock promoting plan. PART 6 The Board Report 6.1 Discussions and analysis of the operating information 6.1.1 Brief Information of Business During the reporting period, the Company has achieved the revenue of RMB 223.59 million increased by 19.8% YoY, and cash flow generated from operating activities reached RMB 155.31 million increased by 44.2% while net profit of RMB112.17 million decreased by 19.9% comparing to the same period last year. The decrease of net profit is mainly caused by the following reasons: (1) sharply decrease of investment income from CSE Net profit of CSE achieved RMB 120.21 million decreased RMB 111.91 million. The attribution was RMB 40.65 million to the Company decreased RMB 37.21 million by 48% comparing to the same period last year. (2) increase of financial costs As at the end of last year, with the rapid increase of bank loans, the Company has interest-bearing loans of RMB 679 million. The interest costs rose from RMB 11.36 million to RMB 20.74 million or 121% increase. (3) the increase of management expenses for developing logistics business The total management expenses reached RMB 43.30 million increased RMB 12.17 million, 39% increase comparing to the same period last year, including: The start-up costs of Baowan Logistics reached RMB 5.12 million; RMB 3 million increased for manpower expenses; The 8 traveling expenses for new projects increased of RMB 0.946 million; Property tax increased of RMB 0.88 million; The intermediary expenses of auditors’ evaluating and consultants’ advising increased of RMB 0.737 million; The advertisement expenses increased of RMB 0.345 million. 6.1.2 Review of Business Sectors (1)Offshore Petroleum Service Turnover of Division of offshore petroleum service got 9.8% growth to reach RMB 147 million year-on-year. Net profit achieved a 12.40% increase to reach RMB 72.69 million. (2)Baowan Logistics Service Chiwan Logistics Turnover of Chiwan Logistics increased 21% to reach RMB 21.01 million comparing with that of last year. Net profit recorded a 21% increase to reach RMB 36.50 million. Shanghai Baowan For almost all the warehouses of the second phrase were put into use, turnover and net profit of Shanghai Baowan enjoyed a rapid growth to RMB 59.73 million and RMB 32.41 million increased by 52% and 75% respectively compared to the same period last year. Currently Shanghai Baowan worked up its value added logistics services to the customers. Until now, it has offered 6 customers this kind of service by renting equipment and loading and unloading goods. The total income from value added logistics services reached RMB 0.87 million in 2007. Guangzhou Baowan: Since Guangzhou Baowan has finished renewal leasing agreements with all customers at the end of last year and with full occupancy rate and good costs saving, turnover achieved RMB 5.84 million, net profit for operating achieved RMB 0.97 million. (3)Offshore Engineering Chiwan Sembawang Engineering (32% equity): After its operation grew rapidly in the past few years, the operation of CSE dropped sharply this year. The accumulated turnover amounted from RMB 979 million to RMB 938 million decreased RMB 41 million by 4.4%. The net profit achieved RMB 120 million (included investment income from Penglai Jutal) and decreased from RMB 232 million to RMB 112 million by 48.3%compared the same time last yea r. Contribution to Chiwan was RMB 40.65 million decreased by 47.1% year-on-year. The sharp drop of its performance mainly was caused by the biggish losses of some project, decreased export rebates, appreciation of RMB currency and etc. 9 Chiwan Offshore Petroleum Equipment Repair & Manufacture Co (20% equity): Net profit of CPEC achieved RMB 2.66 million with investment income of RMB 0.53 million attributed to the Company. 6.1.3 Status of the Investments and the Construction Progress The constructions of Shanghai Baowan have been completed and put into use. A new warehouse was planned to be constructed in Jul 2008. Three warehouses (about 200,000 m2) had been put into use in 2006. The Company was engaging on the other part. The construction of Kunshan Baowan was started in the end of Apr 2007 and was planned to be completed in Jun 2008. The construction of Tianjin Baowan was planned to be completed in Jul 2008. The company was engaging on the prophase of the other projects. 6.1.4. Key Tasks of Business of 2007 Engage on the progress of projects. Try to complete the prophase and start to construction of Wuhan Baowan, Chengdu Longquan Baowan, Chengdu Xindu Baowan, Shenyang Baowan in the last half year of 2008. Promote the ability of value-added services. Study and research for the new projects to improve the net of Baowan Logistics. Ensure the business and operation of all projects. 6.2 Main business statement categorized by business or production Currency: RMB 0000’ Main Business Statement Categorized by Business Increase of Gross interest Increase of Increase of cost Business Revenue Cost gross interest rate（％） revenue（％） （％） rate（％） Operation 6,771.62 2,270.44 66.47% 16.49% -5.13% -7.64 percent Warehouse 14,600.41 5,287.80 63.78% 16.13% 24.47% -2.97 persent Office rental 1,986.90 235.45 88.15% 79.81% -73.96% 69.98 percent 10 6.3 Main Business Statement Categorized by District Currency: RMB 0000’ District Revenue Increase of revenue（％） Shenzhen 16,802 11.22% Shanghai 5,967 52.10% Guangzhou 584 32.52% 6.4 Statement for the use of collection funds □ Applicable √ Inapplicable 6.5 Statement for non-collection funds projects √ Applicable □ Inapplicable Currency: RMB 0000’ Name Amount Progress Earnings RMB59.73million of revenue All warehouses had been Shanghai Baowan (phase I, II) 41,000 and RMB32.41million of net completed for use profit for the year 2007 RMB5.84million of revenue and 1st phase construction had Guangzhou Baowan 15,500 RMB0.97million of operating been completed for use profit for the year 2007 Tianjin Baowan 34,800 Constructing None Kunshan Baowan (phase I) 29,200 Constructing None Langfang Baowan 31,900 Transacting prophase work None Wuhan Baowan 31,500 Transacting prophase work None Chengdu Longquan Baowan 20,200 Transacting prophase work None Chengdu Xindu Baowan 15,700 Transacting prophase work None Chengdu Shuangliu Baowan 23,100 Transacting prophase work None Kunshan Baowan (phase II) 29,600 Transacting prophase work None Shenyang Baowan 18,600 Transacting prophase work None Nanjing Baowan 31,300 Transacting prophase work None Total 322,400 - - 6.6 Statement by the Board for ‘non-standard opinion’ of certified public accountants □Applicable √Inapplicable 6.7 Preplan of the Board for dividend distribution √Applicable □Inapplicable 11 (1) Profit Distribution RMB the Parent the Parent Consolidated net company's net company profit% profit% Retained Earning B/F 102,221,860 Net profit of year 2007 80,151,179 Less: Statutory surplus public reserve 8,015,118 10% 7.15% Discretionary public reserve 4,007,559 5% 3.57% Dividends (tax included) 48,090,707 60% 42.87% The balance 20,037,795 25% 17.86% Retained earning 122,259,655 (2) The cash dividend for the year 2007 of RMB2.08 for every ten shares (tax included) or RMB48,090,707 in total would be paid by the Company and for this purpose the conversion will be based on the closing rate between HK$ and RMB announced by the People’s Bank of China on the first working day after the resolution is passed by the AGM. The above dividend distribution plan will be carried out after the final approval of the AGM 2007. The Company neither declared interim dividend nor converted any reserves into share capital in the year of 2007. Part 7 Significant event 7.1 Purchase of assets □Applicable √ Inapplicable 7.2 Sale of assets □Applicable √ Inapplicable 7.3 Guarantee event □ Applicable √ Inapplicable 7.4 Relative transactions 7.4.1 Relative transactions from daily operating √Applicable □ Inapplicable 12 Currency: RMB’0000 Sales to related party Purchase from related party Related party amounts Ratio amounts Ratio China NanShan Development 415.84 2.51% 691.49 12.51% (Group) Incorporation Shenzhen Chiwan Wharf 158.55 0.96% Holdings Ltd Shenzhen Chiwan Sembawang 576.13 3.47% Engineering Co., Ltd Shenzhen Chiwan Petroleum 206.12 1.24% Engineering Co., Ltd Shenzhen Chixiao Component 1,033.76 18.70% Houses Co., Ltd Shenzhen Chixiao Engineering 917.14 16.59% and Construction Co., Ltd Total 1,356.64 2,642.39 The sum saled to the controlling shareholder and its subsidiaries is RMB5.74milion. 7.4.2 Relative credit and liability √Applicable □ Inapplicable Currency: RMB’0000 Funds Provided to the Funds Provided by the related related party party Related party The sum of Balance The sum of Balance Debit Credit China NanShan Development 10,000 43,000 (Group) Incorporation Total 10,000 43,000 Of which：The sum provided by the Company to the holding shareholder and its subsidiaries was RMB 0 yuan and the balance on 31 December 2007 was RMB 0 yuan. 7.4.3 The settlement on the funds provided to the related party of the year 2007 □ Applicable √ Inapplicable 7.5 Mandated financing √ Applicable □ Inapplicable Currency: RMB’0000 Mandating Term Way of Sum of Mandatary Profit amount Starting time Expiration time payment withdrawal China Merchant By 3,000 2007-12-12 2008-01-29 10 3,010 Bank convention Total 3,000 - - - 10 3,010 13 7.6 Fulfillment of undertaking □ Applicable √ Inapplicable 7.7 Significant litigation and arbitration □ Applicable √ Inapplicable 7.8 Other significant event and its impact 7.8.1 Stock investments □ Applicable √ Inapplicable 7.8.2 Holding shares of other listed company □Applicable √ Inapplicable 7.8.3 Holding shares of financial companies □Applicable √ Inapplicable 7.8.4 Buying shares of the other listed companies □Applicable √ Inapplicable Part 8 The Supervisory Committee report □ Applicable √ Inapplicable Part 9 Financial Report 9.1 Auditor opinion Auditor opinion: standard with non-reserved opinion 9.2 Financial Statements (Appendix) Audited by PWC 9.3 Explanation on changes of accounting policy, accounting estimation and settlement √ Applicable □ Inapplicable The Company has implemented the new enterprise accounting standards since Jan 1, 2007. The important change of accounting policy, estimate and their effects are as follows: 14 (1) According to the related regulations on long-term equity investment, equity method was changed to cost method. It decreased the influence to investment profit and net profit of the parent company by the profit of subsidiaries, but it did not influence the consolidated statements. (2) According to the related regulations on investment property，the Company chose historical-costs method continuously, which did not influence the retained earnings, the financial status, or performance. 9.4 Contents, correct amount, reason and its influence of significant accounting errors □ Applicable √ Inapplicable 9.5 Explanation on changes of consolidated scope √ Applicable □ Inapplicable The financial statements of Wuhan Baowan International Logistic Co., Ltd, Chengdu Longquan Baowan International Logistic Co., Ltd, Chengdu Xindu Baowan International Logistic Co., Ltd and Shenyang Baowan International Logistic Co., Ltd have been consolidated in 2007. Part 10 Documents available for verification 10.1 Original copy of Annual Report signed by the Chairman of the Board; 10.2 Financial statements carrying the signature of the Chairman of the Board, Financial Controller and Financial Manager. Chairman of the Board: Mr. Han Guimao Shenzhen Chiwan Petroleum Supply Base Co Ltd Dated: 25th April 2008 15 Appendix: Financial Statements CONSOLIDATED BALANCE SHEET Unit: RMB Dec.31 , 2007 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2006 Assets: Consolidated Consolidated Parent company Parent company Current assets: 2 2 Cash and cash equivalents 84,572,921 42,608,837 76,940,780 34,998,371 Accounts receivable 23,694,142 27,087,025 16,839,579 21,096,449 Prepayment 4,735,088 1,249,446 864,354 1,100,960 Other receivable 4,850,408 3,187,101 215,723,577 131,984,311 Inventories 1,945,105 1,667,370 1,768,257 1,471,838 Other current assets 30,000,000 - 30,000,000 - Total current assets 149,797,664 75,799,779 342,136,547 190,651,929 Non-current assets: Long-term equity investment 276,888,419 299,085,089 826,962,191 709,158,861 Investment Property 291,487,283 293,445,203 100,852,443 116,654,123 Fixed assets 155,125,664 147,743,225 53,463,990 48,842,412 Construction in progress 123,695,461 1,357,288 537,644 6,600 Intangible assets: 251,692,798 240,674,508 41,548,317 55,780,248 Deferred income tax assets 767,493 - - - Other non-current assets: 445,509,811 226,501,016 253,060,000 203,060,000 Total non-current assets: 1,545,166,929 1,208,806,329 1,276,424,585 1,133,502,244 Total assets: 1,694,964,593 1,284,606,108 1,618,561,132 1,324,154,173 16 CONSOLIDATED BALANCE SHEET (Continued) Unit: RMB Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2006 Liabilities and Equities Consolidated Consolidated Parent company Parent company Current liabilities: 2 2 Short-term loans 448,953,212 140,000,000 448,953,212 140,000,000 Account payable 75,758,472 25,930,539 965,416 670,653 Received in advance 383,064 561,022 - - Employees’ wage payable 12,547,384 9,391,471 11,322,213 8,972,684 Tax payable 7,500,046 5,819,398 5,740,578 5,117,294 Interest payable 1,128,497 553,997 1,128,497 553,997 Others payables 26,949,829 20,226,472 102,862,071 128,852,035 Non-current liability due in 1 year 230,000,000 - 230,000,000 - Total current liabilities 803,220,504 202,482,899 800,971,987 284,166,663 Non-current liabilities: Long-term loans - 230,000,000 - 230,000,000 Deferred income tax liability 3,388,161 4,630,550 3,388,161 4,630,550 Other non-current liabilities 31,807,912 33,315,194 31,807,912 33,315,194 Total non-current liabilities 35,196,073 267,945,744 35,196,073 267,945,744 Total liabilities 838,416,577 470,428,643 836,168,060 552,112,407 Shareholders’ equity Share capital 230,600,000 230,600,000 230,600,000 230,600,000 Capital reserves 209,117,428 210,890,301 208,453,862 210,226,735 Surplus reserves 168,981,289 154,153,337 168,981,289 154,153,337 undistributed profits 247,849,299 218,533,827 174,357,921 177,061,694 Total shareholders’ equity 856,548,016 814,177,465 782,393,072 772,041,766 Total Liabilities and Equities 1,694,964,593 1,284,606,108 1,618,561,132 1,324,154,173 17 CONSOLIDATED INCOME STATEMENT Unit: RMB Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2006 Parent Parent Items Consolidated Consolidated company company I. Total business revenue 233,589,293 194,905,934 147,006,324 133,837,251 Less: Business costs (77,936,880) (74,783,794) (47,366,512) (50,856,901) Business tax and surcharge (11,239,519) (8,806,115) (6,438,343) (5,727,811) Administrative expense (43,304,732) (31,109,567) (27,784,322) (20,655,212) Net financial expense (20,912,132) (8,565,613) (20,181,762) (8,590,547) Loss from asset devaluation 224,773 (448,284) 232,070 (426,364) Plus: Investment income 41,300,890 78,118,622 41,300,890 78,118,622 Incl. Investment income from associates 41,180,890 78,118,622 41,180,890 78,118,622 II Operational profit 121,721,693 149,311,183 86,768,345 125,699,038 Plus: Non-operating income 522,346 199,826 449,128 171,459 Less: Non-operating expenditure (909,959) (501,552) (165,902) (469,571) Incl. Loss from disposal of non-current assets 90,606 (260,395) 48,197 (260,395) III.. Gross profit 121,334,080 149,009,457 87,051,571 125,400,926 Less: Income tax expenses (9,163,656) (9,262,906) (6,900,392) (7,155,201) IV.Net profit 112,170,424 139,746,551 80,151,179 118,245,725 Attributable to the shareholders of parent company 112,170,424 139,259,693 80,151,179 118,245,725 Minority interest - 486,858 - - V、Earnings per share:： (I) Basic earnings per share 0.49 0.60 N/A N/A (II) Diluted earnings per share 0.49 0.60 N/A N/A 18 Consolidated cash flow statement Unit: RMB Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2006 Parent Parent Items Consolidated Consolidated company company I. Net cash flow from business operation Cash received from sales of products & providing of services 237,739,115 190,932,884 151,941,770 131,606,514 Cash received from other business activities 10,628,239 5,739,912 890,915 117,504,418 Sub-total of cash inflow from business activities 248,367,354 196,672,796 152,832,685 249,110,932 Cash paid for purchasing of merchandise and services (19,965,982) (34,894,578) (11,866,812) (10,642,596) Cash paid to or for staffs (29,221,498) (23,870,460) (19,257,794) (15,885,800) Taxes paid (24,812,974) (22,527,911) (13,777,994) (16,945,593) Cash paid for other business activities (19,056,541) (7,654,714) (35,563,729) (7,745,132) Sub-total of cash outflow from business activities (93,056,995) (88,947,663) (80,466,329) (51,219,121) Net cash flow from business operation 155,310,359 107,725,133 72,366,356 197,891,811 II. Cash flow from investment Cash received from investment income 61,724,687 - 61,724,687 - Net cash received from disposal of fixed assets, intangible assets, and other long-term assets 1,081,405 416,112 975,927 426,766 Cash received for other investment activities 1,093,497 780,716 940,604 674,570 Sub-total of cash inflow from investment activities 63,899,589 1,196,828 63,641,218 1,101,336 Cash paid from construction of fixed assets, intangible assets and other long-term assets (359,772,829) (349,638,924) (139,988,511) (257,066,089) Cash paid for investment (34,455,000) - (174,455,000) (179,799,999) Cash paid for other investment activities - - - - Sub-total of cash outflow from investment activities (394,227,829) (349,638,924) (314,443,511) (436,866,088) Net cash flow from investment (330,328,240) (348,442,096) (250,802,293) (435,764,752) III. Cash flow from financing Cash received from loans 347,520,943 570,000,000 347,520,943 570,000,000 Sub-total of cash inflow from financing activities 347,520,943 570,000,000 347,520,943 570,000,000 Repayment for debts (40,000,000) (300,000,000) (40,000,000) (300,000,000) Cash paid for dividend or interests (90,746,548) (72,036,667) (87,259,412) (71,985,315) Sub-total of cash outflow from financing activities (130,746,548) (372,036,667) (127,259,412) (371,985,315) Net cash flow from financing 216,774,395 197,963,333 220,261,531 198,014,685 IV. Influence of exchange rate alternation on cash and cash equivalents 207,570 156,495 116,815 180,374 V. Net increase of cash and cash 41,964,084 (42,597,135) 41,942,409 (39,677,882) 19 equivalents Plus: Balance of cash and cash equivalents at the beginning 42,398,837 84,995,972 34,788,371 74,466,253 VI. Balance of cash and cash equivalents at the end 84,362,921 42,398,837 76,730,780 34,788,371 20 Consolidated statement of changes in equity (consolidated) U Items Equity attributable to the shareholders of parent company Surplus Minority interest Share capital Capital reserves Undistributed profits reserves Balance at Dec. 31, 2005 230,600,000 210,656,111 134,791,383 160,710,280 4,631,707 Application of 2006 accounting standards for the first time - - - 1,024,965 - Balance at January 1, 2006 230,600,000 210,656,111 134,791,383 161,735,245 4,631,707 Increase in 2006 Net profit - - - 139,259,693 486,858 Buy in minority interest - 234,190 - - (5,118,565) Profit distribution withdrawal Surplus reserves - - 19,361,954 (19,361,954) - Dividend - - - (63,099,157) - Balance at Dec. 31, 2006 230,600,000 210,890,301 154,153,337 218,533,827 - Balance at January 1, 2007 230,600,000 210,890,301 154,153,337 218,533,827 - Increase in 2007 Net profit - - - 112,170,424 - Gain or loss Charged directly to the owner's equity Influence of investee’s other equity change under equity method - (1,772,873) - - - Profit distribution Withdrawal Surplus reserves - - 14,827,952 (14,827,952) - Dividend - - - (68,027,000) - Balance at Dec. 31, 2007 230,600,000 209,117,428 168,981,289 247,849,299 - 21