HaiNan Pearl River Holdings Co., Ltd.
Abstract of the 2015 Semi-annual Report
1. Important reminders
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text
disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Shenzhen Stock Exchange or any other
website designated by CSRC.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version
shall prevail.
Company profile
Stock abbreviation ZJKG, ZJB Stock code 000505, 200505
Stock exchange listed with Shenzhen Stock Exchange
For contact Company Secretary Securities Affairs Representative
Name Yu Cuihong Yu Cuihong
Tel. 0898-68583723 0898-68583723
Fax 0898-68581026 0898-68581026
E-mail hnpearlriver@21cn.net hnpearlriver@21cn.net
2. Financial highlights and changes in shareholders
(1) Financial highlights
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/-
Operating revenues (RMB Yuan) 136,117,829.19 124,684,500.79 9.17%
Net profit attributable to
shareholders of the Company (RMB 21,492,625.03 -76,849,759.83 127.97%
Yuan)
Net profit attributable to
shareholders of the Company after
-103,796,313.13 -77,979,104.27 -33.11%
extraordinary gains and losses (RMB
Yuan)
Net cash flows from operating
-94,962,794.82 -156,748,554.81 39.42%
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.05 -0.18 127.98%
Diluted EPS (RMB Yuan/share) 0.05 -0.18 127.98%
As at the end of the As at the end of last
YoY +/-
reporting period year
Total assets (RMB Yuan) 1,588,084,330.14 1,645,436,644.78 -3.49%
Net assets attributable to
shareholders of the Company (RMB -88,070,500.20 15,564,470.40 -665.84%
Yuan)
(2) Shareholdings of the top 10 common shareholders
Unit: share
Total number of common
shareholders at the end of the 40,122
reporting period
Shareholdings of the top 10 common shareholders
Total Pledged or frozen shares
common
Name of Nature of Shareholdin Number of restricted
shares held Status of Number of
shareholder shareholder g percentage common shares held
at the shares shares
period-end
Beijing
Wanfa Real
State-owned
Estate 26.36% 112,479,478
corporation
Development
Co., Ltd.
Li Leon Zhan Foreign
2.38% 10,158,806
Wei individual
Yao Xiu Foreign
2.06% 8,777,329
Guang individual
Domestic
Yao Liyuan 0.46% 1,963,376
individual
Zhang Domestic
0.46% 1,949,250
Xiaoxia individual
Domestic
Lu Yusheng 0.39% 1,649,750
individual
Domestic
Wang Jianjun 0.37% 1,599,910
individual
Chen Domestic
0.36% 1,523,704
Mingwei individual
Zhongrong
International
Trust Co.,
Ltd.-Rongxia
Other
ng No. 4
0.34% 1,440,800
Structural
Securities
Investment
Assembled
Funds Trust
South China Domestic
Financial non-state-ow
0.30% 1,299,500 1,299,500
Holdings ned
Limited corporation
Explanation on associated Among the shareholders above, there exists no related-party relationship between
relationship or persons the principal shareholder and other shareholders of the Company. Nor they are
acting in concert among the parties with concerted action as prescribed in the Information Disclosure
above-mentioned Administrative Methods for Changes in Shareholding of Shareholders of Listed
shareholders Companies. And it is unknown whether there is related-party relationship among
other shareholders and whether they are prescribed parties with concerted action.
Shareholder Wang Jianjun holds 1,599,910 shares in the Company through a client
account of collateral securities for margin trading in Nanjing Securities Co., Ltd.
Shareholders taking part in
And shareholder Ren Yuhua holds a total of 1,230,700 shares in the Company, with
securities margin trading (if
30,700 shares through a common securities account and 1,200,000 shares through
any)
a client account of collateral securities for margin trading in China Galaxy
Securities Co., Ltd.
(3) Shareholdings of the top 10 preference shareholders
□ Applicable √ Inapplicable
No preference shares in the reporting period.
(4) Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
The controlling shareholder did not change in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
The actual controller did not change in the reporting period.
3. Discussion and analysis by the management
In the first half of 2015, we still faced great difficulties in our operation due to the strong pressure for us to repay
the principals and interest of the mature loans previously secured, the rising labor cost in our property and hotel
services, the fierce competition on the regional market, etc.
Up to 30 Jun. 2015, our un-audited total assets were RMB 1,588,084,330.14 and net assets attributable to our
shareholders were RMB -88,070,500.20. For Jan.-Jun. 2015, we achieved operating revenues of RMB
136,117,829.19 and net profits of RMB 18,641,274.06, of which the net profits attributable to the owners of the
Company (without subsidiaries) were RMB 21,492,625.03 and the minority shareholders’ income was RMB
-2,851,350.97.
I. Operation review for the reporting period
1. During the reporting period, the progress of the major structures of the 38# building, 39# building and 40#
building of Phase III of Hubei Meiling Qingcheng Project had respectively reached the 27th floor, 24th floor and 21st
floor; the progress of the brickwork and the secondary structure had respectively reached the 15th floor, 10th floor
and 8th floor; the waterproof engineering and backfill engineering of the basement had completed; the completed
amount of the main project was of RMB 63 million and the accumulative completed amount was of RMB 93
million. There were 446 sets of the residences of 41,950 square meters in the 39th building and 40th building of the
opening quotation of the first period and there were 234 sets completed the subscription on the day of opening as
well as the amount of the tentative contract of the purchase letter was about of RMB 230 million that acquired the
favorable performance of the opening quotation.
2. The business season of the Snow Town of the controlling shareholder, Mudanjiang Tourist Development Group
in 2015 was from Jan. to Mar. and since Apr., the Group went out of business after the snow season. The realized
operating income of the business season of the first half year was of RMB 22.5036 million with the realized net
profits of RMB 12.5404 million and within the reporting period, the Group continued to invest of about RMB 30
million for the construction of the comprehensive service center project of the Days Resort in Snow Town which
had not completed the capping of the major structures with the secondary structure being executing.
3. Property management: the property management company the Company attributed to was facing larger financial
risks and capital pressure. Owning to part of the “migrant bird type” project was in the property income recycling
slack season, part of the income of the first half year delayed the recycling. Meanwhile the lowest wage standards
and the payment base of the employees' social security had constantly been up-regulated, which caused the labor
cost of the employees increased sharply compared to the same period of the previous years. The property company
of the first half year of 2015 had completed the operating income of RMB 94.1058 million, the expense of
operating cost of RMB 94.5869 million, the paid business tax of RMB 5.4576 million and the realized profits of
RMB -0.4852 million as well as there were 86 management projects of the property company and its subsidiaries
and branch companies with the comprehensive management area of about 7.50 million square meter, of which
there were 67 residence projects and 14 office projects. In terms of the structure of the project, the percentage of
the residence projects was of 80%, while under the situation of the unraised property fee of more than ten years but
the operating cost increased by twofoldness, the profit sources of the residence projects became smaller even was
in the loss state.
4. Progress of the projects invested in previous period:
The coal logistics project of Mulin Town had changed the plan as used the land lot for developing the solar power
generation and the greenhouse agriculture projects, during the reporting period, had completed project approval,
now the Company is applying project approval procedures, etc to the relevant departments.
Yunxi iron mines project: Owning to the continuous low level of the market price of the powdered iron, the
Company temporary slowed down the original plan of mining area production line construction and equipment
installation. During the reporting period, the Company and the cooperation party strengthen the management of
mining area, contacted with many steel mills, inspection, straighten out and establish sales channel. In line with the
market condition, adjusted production line construction and mineral detailed survey schedule of mining area of
Zhao courtyard and Dujiawan. Due to the iron ores grade of Zhao courtyard was lower than Dujiawan, in line with
the analysis of market condition, planed to transfer the production equipment invested to Dujiawan, the iron ore
grade had larger competitiveness in the market. Meanwhile, considering the influence of the continuous low level
of the domestic market price of iron ore, the Company actively seeks project transfer or introduces strategic
investors to develop the project in common.
During the reporting period, the land certificate for the industrial land of the Real Estate Development Project on a
Former Tubular Pile Factory had been completed, so far, the Company is waiting for the land certificate issued by
Land Departments. The planning and design of project will be conducted after the adjustment of regulatory detailed
planning in the area issued by the Sanya government.
5. During the reporting period, in order to relieve capital pressure of repaying capital with interest of the loan in
previous period due in reporting period, the Company had sold its holding of 7,750,000 shares of Southwest
Securities which obtained investment income RMB 120 million, which was the Company’s main profit sources in
the first half of the year .
4. Matters related to financial reporting
(1) Explain any changes in the accounting policies, accounting estimates and measurement methods as compared with the
financial reporting of last year
□ Applicable √ Inapplicable
No such cases in the reporting period.
(2) Explain any retrospective restatement due to correction of significant accounting errors in the reporting period
□ Applicable √ Inapplicable
No such cases in the reporting period.
(3) Explain any changes in the consolidation scope as compared with the financial reporting of last year
□ Applicable √ Inapplicable
No such cases in the reporting period.
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard audit report”
issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
Hainan Pearl River Holding Company Limited
Consolidated Balance Sheet
Unit：RMB
ASSETS Note(VIII) 30 June 2015 1 January 2015
Current assets —— ——
Currency Funds 136,016,986.29 97,404,192.62
Provision of settlement fund
Funds lent
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 14,168,842.98 12,378,292.44
Advances to suppliers 136,033,295.38 128,625,359.78
Interest receivable
Dividends receivable 260,015.00 260,015.00
Other receivables 261,993,360.85 238,352,004.55
Buying back the sale of financial assets
Inventories 439,605,383.59 386,635,994.05
Including:Raw material
Finished goods
Reclassified to assets held for sale
Current portion of non-current assets
Other current assets 3,000,000.00
Total current assets 991,077,884.09 863,655,858.44
Non-current assets —— ——
Available-for-sale financial assets 11,411,309.90 184,158,809.90
Held-to-maturity investments
Long-term receivables
Long-term equity investments 35,756,366.33 35,961,754.63
Investment property 21,446,645.11 22,228,615.23
Fixed assets original cos 425,779,641.92 436,892,954.81
Less:Accumulated depreciation
Fixed assets--net value 425,779,641.92 436,892,954.81
Less:Fixed assets provision for impairment
Fixed assets--net book value 425,779,641.92 436,892,954.81
Construction in progress 60,094,357.34 57,013,898.46
Construction materials 393,706.60 393,706.60
Fixed assets pending for disposal
Productive biological assets
Oil and gas assets
Intangible assets 30,076,762.69 30,660,800.67
Development disbursements
Goodwill
Long-term prepaid expenses 10,465,816.16 12,888,406.04
Deferred tax assets
Other non-current assets 1,581,840.00 1,581,840.00
Total non-current assets 597,006,446.05 781,780,786.34
Total assets 1,588,084,330.14 1,645,436,644.78
The accompanying notes form an integral part of the financial statements.
Legal representative:Zheng Qing Principal in charge of accounting:Yang Daoliang Head of the accounting department: wuxiukun
Hainan Pearl River Holding Company Limited
Consolidated Balance Sheet
Unit：RMB
ASSETS Note(VIII) 30 June 2015 1 January 2015
Current liabilities —— ——
Short-term borrowings 19,000,000.00 19,000,000.00
Financial liabilities at fair value through profit or loss
Derivative financial assets
Notes payable
Accounts payable 22,096,077.65 58,578,620.48
Advances from customers 25,640,247.62 28,572,757.37
Employee benefits payable
