CHT (HOLDINGS) LTD. 中 国 华 夏 科 技 ( 控 股 ) 有 限 公 司 Quarterly Financial Statements And Dividend Announcement for the Period Ended 30 September 2011 截 至 2011 年 9 月 30 日 的 季 度 财 务 报 表 及 股 息 公 告 PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS 第 一 部 分 : 各 季 度 ( 第 一 第 二 及 第 三 季 度 ) 半 年 及 全 年 业 绩 公 告 所 需 资 料 1(a) A statement of comprehensive income (for the Group) together with a comparative statement for the third quarter and the first nine months ended 30 September 2011. ( 集 团 ) 的 收 入 报 表 连 同 上 一 财 政 年 度 同 期 的 对 比 报 表 1(a)(i) Consolidated statement of comprehensive income for the period ended 30 September 2011. figures have not been audited. 集 团 截 至 2011 年 9 月 30 日 止 的 季 度 收 入 报 表 这 些 金 額 是 未 經 审 计 的 These Group 集 团 3Q 2011 3Q 2010 2011 年 2010 年 第 三 季 度 第 三 季 度 RMB 000 RMB 000 +/(-) Jan-Sep 2011 2011 年 一 至 九 月 % RMB 000 Group 集 团 Jan-Sep 2010 2010 年 一 至 九 月 RMB 000 +/(-) % REVENUE 营 业 额 254,157 238,297 6.7 661,423 612,477 8.0 Cost of sales 销 售 成 本 (233,270) (180,222) 29.4 (581,955) (481,560) 20.8 GROSS PROFIT 毛 利 20,887 58,075 (64.0) 79,468 130,917 (39.3) Gross margin 毛 利 率 8.2% 24.4% (16.2) 12.0% 21.4% (9.4) Other income and gains 其 他 收 益 4,129 532 676.1 31,409 1,278 2,357.7 Change in fair value of interest-bearing notes 5,273 (7,488) N/M 1,510 (8,199) N/M 可 换 股 债 券 公 允 价 值 调 整 Selling and distribution costs (13,744) (8,446) 62.7 (34,822) (28,800) 20.9 销 售 及 分 销 成 本 Administrative expenses (9,273) (14,390) (35.6) (34,587) (43,402) (20.3) 行 政 费 用 Other operating expenses (16,488) (824) 1901.0 (16,488) (824) 1901.0 其 他 营 运 费 用 Finance costs (10,215) (5,743) 77.9 (24,085) (17,448) 38.0 财 务 成 本 Share of results of associate 所 占 联 营 公 司 业 绩 - (1,126) (100.0) - (3,675) (100.0) (LOSS)/PROFIT BEFORE INCOME TAX 除 税 前 ( 亏 损 )/ 盈 利 Income tax expense 所 得 税 开 支 (LOSS)/ PROFIT FOR THE PERIOD 本 期 ( 亏 损 )/ 盈 利 (19,431) 20,590 N/M 2,405 29,847 (91.9) (3,096) (960) 222.5 (7,470) (6,397) 16.8 (22,527) 19,630 N/M (5,065) 23,450 N/M 1
OTHER COMPREHENSIVE INCOME 其 他 全 面 性 收 入 Exchange loss on translation of financial statements of foreign operations 在 换 算 海 外 业 务 财 务 报 表 之 外 汇 兑 换 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 期 间 全 面 性 收 入 总 数 (Loss)/Profit for the period attributable to: 期 间 ( 亏 损 )/ 盈 利 应 占 分 额 : Owners of the Company 本 公 司 拥 有 人 (743) (2,757) (73.1) (48) (1,487) (96.8) (743) (2,757) (73.1) (48) (1,487) (96.8) (23,270) 16,873 N/M (5,113) 21,963 N/M (22,527) 19,269 N/M (5,581) 22,136 N/M Non-controlling interests 少 数 股 东 权 益 - 361 (100.0) 516 1,314 (60.7) (22,527) 19,630 N/M (5,065) 23,450 N/M Total comprehensive income attributable to: 全 面 性 收 入 总 数 应 占 分 额 : Owners of the Company 本 公 司 拥 有 人 (23,270) 16,512 N/M (5,629) 20,649 N/M Non-controlling interests 少 数 股 东 权 益 - 361 (100.0) 516 1,314 (60.7) (23,270) 16,873 N/M (5,113) 21,963 N/M N/M: Not Meaningful 无 意 义 2
1(a)(ii) The accompanying notes to the financial statements form an integral part of the financial statements 附 带 的 财 务 报 告 附 注 为 财 务 报 告 中 重 要 的 一 部 分 3Q 2011 3Q 2010 +/(-) Jan-Sep 11 Jan-Sep 10 +/(-) Notes RMB 000 RMB 000 % RMB 000 RMB 000 % 1 Other income and gains 其 他 收 益 Interest income 利 息 收 入 400 532 (24.8) 870 1,259 (30.9) Gain on disposal of noncurrent - - - 17,660 - N/M assets held for sale Gain on settlement of - - - 6,598 - N/M receivables from Plymouth Rubber Company LLC Net foreign exchange gain 1,190 - N/M 1,190 - N/M Written back of trade and 2,428 - N/M 4,403 - N/M other payables Sundry income 其 他 收 入 111 - N/M 688 19 3,521.0 4,129 532 676.1 31,409 1,278 2,357.7 2 Interest expenses 利 息 费 用 (10,215) (5,743) 77.9 (24,085) (17,448) 38.0 3 Amortisation of (572) (619) (7.6) (1,810) (1,857) (2.5) prepaid premium for land leases 预 付 土 地 租 金 摊 销 4 Amortisation of (847) (952) (11.0) (3,310) (2,856) 15.9 intangible assets 无 形 资 产 摊 销 5 Depreciation of property, (14,891) (14,068) 5.9 (49,001) (47,942) 2.2 plant and equipment 物 业, 厂 房 及 设 备 折 旧 6 Change in fair value a 5,273 (7,488) N/M 1,510 (8,199) N/M of interest-bearing notes 可 换 股 债 券 公 允 价 值 调 整 7 Net foreign exchange loss 净 外 汇 汇 兑 亏 损 - (948) (100.0) - (2,446) (100.0) 8 Impairment loss on receivables 應 收 賬 款 撤 銷 亏 损 9 Under-provision of PRC Enterprise Income Tax in respect of priod period 10 Net loss on disposal of property, plant and equipment 11 Impairment loss on property, plant and equipment A. Notes 附 注 : (14,349) (824) 1641.4 (14,349) (824) 1641.4 (1,193) - N/M (1,193) - N/M (308) - N/M (308) - N/M (2,139) - N/M (2,139) - N/M a. As at 30 September 2011, the fair value of the 3.5% unsecured Convertible Notes due on 31 December 2016 of S$17,250,000 was determined by an independent professionally qualified valuer to be at S$19,003,583 (equivalent to approximately RMB92,495,000). Change in fair value of interest-bearing notes represents the difference between the fair value as at 30 June 2011 and that as at 30 September 2011. B. There were no write-off for stock obsolescence and impairment in value of investments. 于 本 期 间 并 没 有 陈 旧 存 货 的 注 销 及 投 资 价 值 的 减 损 3
1(b)(i) Statements of Financial Position (for the issuer and group), together with comparative statements as at the end of the immediately preceding financial year. ( 上 市 公 司 及 集 团 ) 的 财 务 状 况 表 连 同 截 至 上 一 财 政 年 的 对 比 报 表 Notes 附 注 Group 集 团 Company 公 司 30/9/2011 31/12/2010 30/9/2011 31/12/2010 RMB'000 RMB'000 RMB'000 RMB'000 NON-CURRENT ASSETS 非 流 动 资 产 Prepaid premium for land leases 预 付 土 地 租 约 租 金 Property, plant and equipment 物 业, 厂 房 及 设 备 Intangible assets 无 形 资 产 Investments in subsidiaries 子 公 司 投 资 Other receivables 其 它 应 收 款 CURRENT ASSETS 流 动 资 产 Due from subsidiaries 应 收 子 公 司 款 项 Trade receivables 应 收 帐 款 Inventories 存 货 Prepayments, deposits and other receivables 预 付 款, 已 付 按 金 及 其 他 应 收 款 Income tax recoverable 可 退 回 所 得 税 税 金 Pledged bank deposits 已 抵 押 银 行 存 款 Cash and cash equivalents 现 金 及 现 金 等 价 物 Non-current assets held for sale 可 变 卖 非 流 动 资 产 59,482 61,292 - - 399,210 441,806 - - 1 18,842 22,152 - - - - 114,541 114,541 54,325 54,325 - - 531,859 579,575 114,541 114,541 - - 333,242 414,377 2 131,308 144,015 - - 181,658 160,262 - - 151,821 97,767 - - 604 730 - - 3 83,681 108,349 54 54 162,666 150,828 - - 711,738 661,951 333,296 414,431 4-23,093 - - 711,738 685,044 333,296 414,431 CURRENT LIABILITIES 流 动 负 债 Trade payables 应 付 帐 款 Accruals, other payables and trade deposits received 应 计 提 债 务 其 他 应 付 款 及 已 收 按 金 3 118,912 65,130 - - 30,269 25,447 2,908 4,060 4
Due to subsidiaries 应 付 子 公 司 款 项 Due to a holder of non-controlling interests 应 付 一 位 少 数 股 东 Bank loans, secured 银 行 借 款 Interest-bearing notes 可 换 股 债 券 Income tax payables 应 交 税 金 NET CURRENT ASSETS 净 流 动 资 产 - - 1,714 1,714-1,975 - - 374,622 344,622 36,822 30,822 20,876 16,135 20,876 16,135 3,657 1,273 - - 548,336 454,582 62,320 52,731 163,402 230,462 270,976 361,700 NON-CURRENT LIABILITIES 非 流 动 负 债 Bank loans, secured 30,774 84,393 30,774 84,393 银 行 借 款 Interest-bearing notes 133,954 150,794 133,954 150,794 164,728 235,187 164,728 235,187 NET ASSETS 净 资 产 530,533 574,850 220,789 241,054 Equity attributable to Company s owners 权 益 归 于 公 司 拥 有 人 Issued capital 已 发 行 股 本 Reserves 储 备 Non-controlling interests 少 数 股 东 权 益 TOTAL EQUITY 权 益 总 额 174,961 174,961 174,961 174,961 355,572 380,408 45,828 66,093 530,533 555,369 220,789 241,054 5-19,481 - - 530,533 574,850 220,789 241,054 5
Notes: 附 注 : 1. Intangible assets include proprietary technology which represents the technical know-how on production and applied research of adhesive tape and related products contributed by Plymouth Rubber Co., Inc ( Plymouth Rubber ), the joint venture partner of the Company s joint venture, Plymouth Yongle Tape (Shanghai) Co., Ltd. ( Shanghai Plant ), into Shanghai Plant as its capital contribution. The balance also includes the technical know-how for the production of a series of adhesive products acquired from an independent third party as well as an Enterprise Resources Planning System. 2. The balance of trade receivables decreased mainly due to the settlement of amounts due from Plymouth Rubber of approximately US$5 million (RMB33 million equivalents as at 31 December 2010), details of which are set out in the Company s announcements dated 29 April 2011, 14 December 2010 and 24 September 2008. Excluding this amount, net receivables as at 30 September 2011 would have increased by 18.3% as compared to the balance as at 31 December 2010, mainly due to extension of credit period in the first nine months of the financial year to maintain better customer relationships and the increase in revenue. 3. In the PRC, banks and customs declaration would require an entity to pledge its bank deposits when utilising documentary credits. The decrease in pledged bank deposits was mainly due to a decrease in the required deposit rate by the financial institutions. The 82.6% increase in trade payables in turn was mainly due to the increase in purchases of raw materials for the fourth quarter of 2011. 4. Non-current assets held for sale of approximately RMB23 million as at 31 December 2010 represented a 25% interest in an associate and land use right and buildings held by Zhuozhou Yongsheng Plastic Cement Co., Ltd., a wholly-owned subsidiary of the Group. As these have been fully disposed of, there is a nil balance as at 30 September 2011. 5. Non-controlling interests represented the non-controlling equity interest in Shanghai Plant held by Plymouth Rubber. As such interests had been sold to the Group as a result of the settlement of debt due from Plymouth Rubber (see Note 2 above), there is a nil balance as at 30 September 2011. 6
1(b)(ii) Aggregate amount of Group's borrowings and debt securities 集 团 借 贷 及 抵 押 债 务 的 总 额 Amount repayable in one year or less, or on demand 一 年 以 内 应 偿 还 或 见 索 即 付 款 额 As at 30/09/2011 于 2011 年 9 月 30 日 Secured Unsecured 有 抵 押 无 抵 押 RMB 000 RMB 000 374,622 20,876 As at 31/12/2010 于 2010 年 12 月 31 日 Secured Unsecured 有 抵 押 无 抵 押 RMB 000 RMB 000 344,622 16,135 Amount repayable after one year 一 年 后 应 偿 还 的 款 额 As at 30/09/2011 于 2011 年 9 月 30 日 Secured Unsecured 有 抵 押 无 抵 押 RMB 000 RMB 000 30,774 133,954 As at 31/12/2010 于 2010 年 12 月 31 日 Secured Unsecured 有 抵 押 无 抵 押 RMB 000 RMB 000 84,393 150,794 Details of any collateral 若 有 抵 押 品 的 详 情 As at 30 September 2011, the Group s PRC bank loans and other borrowings of approximately RMB492,630,000 bear interest ranging from 3.5% to 8.34% per annum whereas the syndicated loans of approximately RMB67,596,000 bear annual interest at the Hong Kong Inter-bank Offered Rate plus 3.5%. The Group s banking facilities were secured by the following: 本 集 团 银 行 信 贷 融 资 是 以 下 列 条 款 作 抵 押 : (1) the pledge of the Group s bank deposits, land use rights and buildings of approximately RMB83.7 million (31 December 2010: RMB108.3 million), RMB46.8 million (31 December 2010: RMB47.6 million) and RMB116.6 million (31 December 2010: RMB123.9 million) respectively; (2) the pledge of certain land use rights and buildings provided by an independent third party; (3) corporate guarantees executed by the Company s subsidiaries, Zhuozhou Yongsheng Plastic Cement Co., Ltd., Shanghai Plant and Hebei Huaxia Enterprise Co., Ltd. of RMB58 million (31 December 2010: RMB58 million), Nil (31 December 2010: RMB30 million) and RMB40 million (31 December 2010: RMB20 million), respectively and unlimited corporate guarantees from Huaxia (Hong Kong) Adhesive Products Limited ( Huaxia (HK) ), Choice Clever Profits Limited ( Choice Clever ) and Awesome Profits Limtied ( Awesome ); (4) charge over shares in Awesome and Huaxia (HK) held by Choice Clever and shares in Choice Clever held by the Company; (5) charge over a share in Huaxia (HK) held in trust by a director for the Company; and (6) charge over certain bank accounts of the Company, Huaxia (HK) and Choice Clever. 7
1(c) A statement of cash flow (for the Group), together with a comparative statement for the corresponding period of the immediately preceding financial year. ( 集 团 ) 的 现 金 流 量 表 连 同 上 一 财 政 年 同 期 的 对 比 报 表 Group 集 团 3Q 2011 2011 年 第 三 季 度 3Q 2010 2010 年 第 三 季 度 Jan-Sep 2011 2011 年 一 至 九 月 Jan-Sep 2010 2010 年 一 至 九 月 RMB'000 RMB'000 RMB'000 RMB'000 Cash flows from operating activities 营 业 所 得 现 金 流 量 (Loss)/Profit before income tax 税 前 ( 亏 损 )/ 盈 利 (19,431) 20,590 2,405 29,847 Adjustments for: 调 整 下 列 各 项 : Depreciation of propety, plant and equipment 物 业, 厂 房 及 设 备 折 旧 14,891 14,068 49,001 47,942 Amortisation of prepaid premium for land leases 预 付 土 地 租 约 租 金 摊 销 572 619 1,810 1,857 Amortisation of intangible assets 无 形 资 产 摊 销 847 952 3,310 2,856 Impairment loss on receivables 应 收 账 款 撇 销 亏 损 14,349 824 14,349 824 Impairment loss on property, plant and equipment 2,139-2,139 - Net loss on disposal of property, plant and equipment 308-308 - Interest income 利 息 收 入 (400) (532) (870) (1,259) Interest expenses 利 息 费 用 10,215 5,743 24,085 17,448 Gain on disposals of non-current assets held for sale - - (17,660) - Gain on settlement of receivables - - (6,598) - Write back of trade and other payables (2,428) - (4,403) - Share of loss of associate 应 占 联 营 公 司 亏 损 - 1,126-3,675 Change in fair value of interest bearing notes (5,273) 7,488 (1,510) 8,199 Operating profit before working capital changes 15,789 50,878 66,366 111,389 营 运 资 金 变 更 前 营 业 现 金 流 量 Working capital adjustments: 营 运 资 金 调 整 : (Increase)/Decrease in trade receivables 应 收 帐 款 ( 增 加 ) / 减 少 (18,090) (7,113) (30,124) 6,590 (Increase)/Decrease in prepayments, deposits and other receivables (52,163) (8,594) (58,205) 23,705 预 付 款, 已 付 按 金 及 其 他 应 收 款 ( 增 加 ) / 减 少 Increase in inventories 库 存 增 加 (20,458) (7,100) (21,396) (12,310) Increase/(Decrease) in trade payables 71,076 (45,542) 54,803 25,166 应 付 帐 款 增 加 /( 减 少 ) Increase in accruals, other payables and trade deposits received 15,706 2,090 5,295 8,016 应 计 债 务 其 他 应 付 款 及 已 收 定 金 的 增 加 /( 减 少 ) Cash generated from/(used in) operations 营 业 活 动 所 得 现 金 11,860 (15,381) 16,739 162,556 Interest received 已 收 利 息 400 532 870 1,259 Interest paid 已 付 利 息 (7,561) (5,743) (21,431) (17,448) Net income tax (paid)/recovered 已 ( 缴 )/ 退 回 税 金 (3,296) (655) (4,961) 2,127 Net cash from/(used in) operating activities 1,403 (21,247) (8,783) 148,494 营 业 活 动 所 得 净 现 金 Cash flows from investing activities 投 资 活 动 所 得 现 金 流 量 Purchases of property, plant and equipment 购 入 物 业, 厂 房 及 机 械 设 备 (4,394) - (9,040) (7,252) Proceeds from disposal of property, plant and equipment 188-188 - Proceeds from disposal of non-current assets held for sale - - 40,753 - (Increase)/Decrease in pledged bank deposits 银 行 保 证 金 减 少 /( 增 加 ) (3,475) 40,933 24,632 (72,748) Net cash generated (used in)/from investing activities (7,681) 40,933 56,533 (80,000) 投 资 活 动 所 ( 用 )/ 得 净 现 金 Cash flows from financing activities 融 资 活 动 所 得 现 金 流 量 Proceeds from bank loans 所 得 银 行 借 款 款 项 306,510 57,000 354,000 239,310 Repayment of bank loans 还 款 银 行 借 款 (286,569) (66,594) (377,619) (260,041) Repayment of interest-bearing notes 偿 还 可 换 股 债 券 (6,647) (8,153) (12,266) (8,153) Net cash from/(used in) financing activities 融 资 活 动 所 得 /( 用 ) 现 金 13,294 (17,747) (35,885) (28,884) 8
Net increase in cash and cash equivalents 现 金 或 现 金 等 价 物 净 增 加 /( 减 少 ) Effect of foreign exchange rate changes, net 外 币 兑 换 率 变 动 的 净 影 响 Cash and cash equivalents at beginning of financial period 现 金 或 现 金 等 价 物 期 初 余 额 Cash and cash equivalents at end of financial period 现 金 或 现 金 等 价 物 期 未 余 额 7,016 1,939 11,865 39,610 (722) (2,757) (27) (1,487) 156,372 197,978 150,828 159,037 162,666 197,160 162,666 197,160 9
1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. 显 示 ( 上 市 公 司 及 集 团 )(i) 股 权 的 所 有 变 更 的 报 表 或 (ii) 资 本 化 发 行 及 分 配 产 生 的 股 权 变 更 除 外 的 股 权 变 更 的 报 表, 连 同 上 一 财 政 年 同 期 的 对 比 报 表 Group 集 团 Issued capital 已 发 行 股 本 RMB'000 Share premium 股 票 溢 价 RMB'000 Attributable to Owners of the Company 本 公 司 权 益 持 有 人 所 持 权 益 Exchange reserve 汇 兑 储 备 RMB'000 Statutory reserves 法 定 储 备 RMB'000 Retained profits 累 积 盈 余 RMB'000 Total 总 数 RMB'000 Noncontrolling interest 少 数 股 东 权 益 RMB'000 Total 总 计 RMB'000 Balance at 1 July 2010 2010 年 7 月 1 日 余 额 174,961 155,177 (5,022) 97,410 141,075 563,601 9,776 573,377 Profit for the period - - - - 19,269 19,269 361 19,630 Other comprehensive income Exchange loss on translation of financial statements of foregin operatons Total comprehensive income for the period 本 期 间 的 全 面 收 入 总 额 Balance at 30 September 2010 2010 年 9 月 30 日 余 额 - - (2,757) - - (2,757) - (2,757) - - (2,757) - 19,269 16,512 361 16,873 174,961 155,177 (7,779) 97,410 160,344 580,113 10,137 590,250 Balance at 1 July 2011 2011 年 7 月 1 日 余 额 174,961 155,177 (5,812) 99,569 129,908 553,803-553,803 Loss for the period - - - - (22,527) (22,527) - (22,527) Other comprehensive income Exchange loss on translation of financial statements of foregin operatons Total comprehensive income for the period 本 期 间 的 全 面 收 入 总 额 Balance at 30 September 2011 2011 年 9 月 30 日 余 额 - - (743) - - (743) - (743) - - (743) - (22,527) (23,270) - (23,270) 174,961 155,177 (6,555) 99,569 107,381 530,533-530,533 10
Company 上 市 公 司 Balance at 1 July 2010 2010 年 7 月 1 日 余 额 Issued capital 已 发 行 股 本 RMB'000 Share premium 股 票 溢 价 RMB'000 Accumulated losses 累 积 损 失 RMB'000 Total 总 计 RMB'000 174,961 155,177 (70,789) 259,349 Loss for the period - - (7,092) (7,092) Total comprehensive income for the period 本 期 间 的 全 面 收 入 总 额 Balance at 30 September 2010 2010 年 9 月 30 日 余 额 - - (7,092) (7,092) 174,961 155,177 (77,881) 252,257 Balance at 1 July 2011 2010 年 7 月 1 日 余 额 174,961 155,177 (104,568) 225,570 Loss for the period - - (4,781) (4,781) Total comprehensive income for the period 本 期 间 的 全 面 收 入 总 额 Balance at 30 September 2011 2011 年 9 月 30 日 余 额 - - (4,781) (4,781) 174,961 155,177 (109,349) 220,789 11
1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as well as the number of shares held as treasurey shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. 自 上 一 个 财 政 期, 公 司 股 本 因 附 加 股 红 股 股 份 购 回 行 使 认 股 选 择 权 或 认 股 权 证 其 他 权 益 发 行 兑 换 发 行 股 票 以 取 得 现 金 或 收 购 对 价 或 为 任 何 其 他 目 的 而 发 行 股 票 而 发 生 的 任 何 变 更 的 详 情 亦 须 注 明 截 至 本 财 政 期 末 及 截 至 上 一 财 政 年 同 期 可 能 就 兑 换 所 有 结 存 的 可 换 证 券 而 发 行 的 股 票 数 目 及 存 放 在 司 库 的 库 存 股 票 数 量 占 总 已 发 行 股 票 数 量, 不 包 括 库 存 股 票 发 行 商 之 数 量 On 12 July 2010, the Company entered into an agreement (the Restructuring Agreement ) to revise certain terms and conditions with the sole holder of the unsecured Convertible Notes of S$34.5 million which bore interest at a rate of 3.5% per annum and is redeemable by the Company on 4 May 2009 (the 2009 Convertible Notes ). Pursuant to the revised terms and conditions, all the 2009 Convertible Notes with a principal value of S$34.5 million were returned to the Company and all the rights attached are terminated. In return, the Company issued: (1) new unsecured convertible notes, each with a principal value of S$250,000, to a sum of S$17,250,000, which is redeemable by the Company on 31 December 2016 (the 2016 Convertible Notes ). Each 2016 Convertible Note may be converted, at the sole option of the holder, into 781,250 Conversion Shares, aggregating to a total of 53,906,250 Conversion Shares. The Company received an approval from the SGX-ST on 9 September 2010 for the listing of and quotation on the Mainboard of Singapore Exchange Limited ( SGX ) of Conversion Shares in event of conversion of the 2016 Convertible Notes. For details, please refer to the Company s announcement dated 13 Septembter 2010; and (2) the remaining S$17,250,000 will be repaid in quarterly installments until December 2013. As at 30 September 2011, the Company did not have any treasury shares (31 December 2010: Nil). 12
1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year. 显 示 予 本 财 政 期 间 终 止 日 及 去 年 同 期 终 止 日 之 已 发 行 股 票 数 量, 不 包 括 库 存 股 票 Number of issued shares 已 发 行 股 票 数 量 As at 于 30 September 2011 31 December 2010 2011 年 9 月 30 日 2010 年 12 月 31 日 274,858,363 274,858,363 The Company did not have any treasury share as at 30 September 2011 (31 December 2010: Nil). 于 2011 年 9 月 30 日 (2010 年 12 月 31 日 : 無 ), 本 公 司 并 没 有 任 何 库 存 股 票 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. 以 一 句 声 明 显 示 予 本 报 告 财 政 期 间 终 止 日 之 所 有 销 售, 转 让, 处 置, 取 消 及 / 或 利 用 库 存 股 票 Not applicable. 不 适 用 2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. 有 关 数 字 是 否 经 审 计 或 审 阅, 且 按 何 种 审 计 标 准 或 惯 例 审 计 或 审 阅 These interim financial statements which comprise the company and consolidated statements of financial position as of 30 September 2011 and the related consolidated statement of comprehensive income, and consolidated statement of cash flows for the ninemonth period then ended is unaudited, but has been reviewed by the Company s auditor, BDO Limited, in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the International Auditing and Assurance Standards Board. 3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter). 若 有 关 数 目 字 经 审 计 或 审 阅, 须 附 上 审 计 师 报 告 ( 包 括 对 任 何 特 定 事 项 的 澄 清 或 强 调 ) Please refer to the Report on review of interim financial information issued by BDO Limited dated 30 November 2011. 4. Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied. 是 否 应 用 上 市 公 司 最 新 经 审 计 的 年 度 财 务 报 表 的 相 同 会 计 政 策 及 计 算 方 法 Except as disclosed in item 5 below, the Group has applied consistent accounting policies and methods of computation in the financial statements for the current period compared with those of the most recently audited financial statements for the year ended 31 December 2010. 除 了 以 下 第 五 项 所 提 及 的 事 項 外, 本 集 团 已 一 致 应 用 于 2010 年 12 月 31 日 經 审 计 财 务 报 告 中 所 採 納 的 会 计 政 策 计 算 方 法 13
5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. 若 会 计 政 策 及 计 算 方 法 出 现 任 何 变 更, 包 括 会 计 标 准 所 规 定 的 任 何 变 更, 须 列 出 有 关 的 变 更 变 更 的 原 因 及 变 更 所 产 生 的 影 响 The Group has adopted the applicable new/revised International Financial Reporting Standards ( IFRSs ) that are effective for financial periods beginning on 1 January 2011. 集 团 已 经 采 用 合 适 新 / 已 修 订 国 际 财 务 报 告 准 则 ( IFRSs ) 为 2011 年 1 月 1 日 往 后 财 政 年 度 有 效 执 行 For the current reporting period ended 30 September 2011, the adoption of these new/revised IFRSs did not give rise to any significant impact to the Group s financial statements. 本 报 告 期 间 截 止 2011 年 9 月 30 日, 采 用 该 等 合 适 新 / 已 修 订 IFRSs 不 会 形 成 集 团 财 务 报 表 重 大 影 响 14
6. Earnings per ordinary share of the Group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. 集 团 在 本 财 政 期 间 及 上 一 财 政 年 同 期 每 股 普 通 股 的 收 益 ( 扣 除 优 先 股 息 的 准 备 金 ) For the period ended 30 September 截 至 9 月 30 止 2011 2010 +/(-)% (Loss)/Earnings per ordinary share of the Company for the financial period based on (loss)/profit attributable to owners of the Company 集 团 于 财 政 季 度 基 于 公 司 拥 有 人 应 占 本 期 利 润 /( 亏 损 ) 计 算 出 的 每 普 通 股 收 益 (i) based on the weighted average number of shares (RMB cents) 基 于 加 权 平 均 股 份 数 目 ( 人 民 币 仙 ) Weighted average number of shares 加 权 平 均 股 份 数 目 (2.03) 8.05 N/M 274,858,363 274,858,363 - N/A: Not applicable 不 适 用 N/M: Not meaningful 无 意 义 Note 附 注 : The calculation of basic (loss)/earnings per share is based on the loss attributable to owners of the Company of RMB5,581,000 (Period ended 30 September 2010: profit of RMB22,136,000) and 274,858,363 (Period ended 30 September 2010: 274,858,363) ordinary shares in issue during the period. Diluted earnings per share for the nine month periods ended 30 September 2011 and 2010 was not presented because the impact of the exercise of the conversion options attached to the 2016 Convertible Notes was anti-dilutive. 15
7. Net asset value (for the issuer and Group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the:- (a) current financial period reported on; and (b) immediately preceding financial year. ( 上 市 公 司 及 集 团 ) 的 每 股 普 通 股 净 资 产 值, 按 上 市 公 司 在 下 列 财 政 期 末 已 发 行 股 本 计 算 : (a) 本 财 政 期 ; 及 (b) 上 一 财 政 年 Net asset value attributable to the owners of the Company per ordinary share (RMB cents) 每 普 通 股 ( 人 民 币 仙 ) 归 于 上 市 公 司 权 益 持 有 人 之 净 资 产 值 Group 本 集 团 Company 本 公 司 30/9/11 31/12/10 +/(-)% 30/9/11 31/12/10 +/(-)% 193.0 202.1 (4.5) 80.3 87.7 (8.4) 16
8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group s business. It must include a discussion of the following:- (a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. 回 顾 集 团 业 绩 以 取 得 对 集 团 的 业 务 合 理 的 理 解 有 关 回 顾 须 包 括 下 列 各 项 的 讨 论 : (a) 本 财 政 期 间 影 响 集 团 的 营 业 额 成 本 及 收 益 的 任 何 显 著 因 素, 包 括 季 节 性 或 周 期 性 因 素 ( 若 适 用 ); 及 (b) 本 财 政 期 间 影 响 集 团 的 现 金 流 量 营 运 资 金 资 产 或 债 务 的 任 何 重 大 因 素 Review of Group Performance 3Q2011 VERSUS 3Q2010 The Group's revenue slightly improved by 6.7%. Group operating profit and pre-tax profit As the market remained competitive, overall gross margin decreased significantly to 8.2% in 3Q 2011 from 24.4% in 3Q 2010. This was mainly due to an increase in the raw material cost as a result of rapid rise in petrochemical based raw materials, impact of power stoppages imposed by the authorities and increase in labour cost by around 30% when compared with same quarter of the last year. The costs of some key raw materials rose significantly such as PVC resin up by around 10%, benzene up by around 30% as well as variety of rubber products and tree resin up from around 23% to 80% when compared with the same quarter of the last year. Our Group also observed the following changes in expenditure in 3Q 2011 when compared to 3Q 2010: (a) The change in fair value in interest-bearing notes represents the difference between the fair value as at 30 June 2011 and that as at 30 September 2011. (b) Selling and distribution costs increased by 62.7% whereas administrative expenses decreased by 35.6%. The former was mainly due to higher freight outward charges whereas the latter was mainly due to decrease in provision for expenses of approximately RMB6 million incurred in relocation of production equipments of Zhuozhou Yongsheng Plastic Cement Co., Ltd., a group subsidiary. (c) Finance costs increased significantly by 77.9% due to higher average balance of secured bank loans and interest rates during the quarter. Overall, the Group reported a loss of approximately RMB22.5 million. 17
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. 就 先 前 向 股 东 披 露 的 预 测 或 前 景 声 明 而 言, 前 述 与 实 际 业 绩 的 任 何 出 入 Not applicable. 不 适 用 10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. 截 至 公 告 日 期, 集 团 所 处 行 业 的 显 著 趋 势 及 竞 争 情 况 以 及 可 能 影 响 集 团 在 下 个 报 告 期 及 未 来 12 个 月 的 任 何 已 知 因 素 或 事 项 的 有 关 评 论 The Group continues to face uncertainties due to the volatility of oil prices as its raw materials are mainly petrochemical based. Rising inflation is also a concern to the Group as its impact on the economy is unclear. Cost of production is increasing and the Group is trying to pass on cost increases to its customers. Lastly, the continuing appreciation of RMB against USD may affect the Group s export market. Uncertainties in the global economies have increased and this may adversely impact the Group s performance. On 31 October 2011, the Company and YongLe Tape Ltd. (the Offeror ), a whollyowned subsidiary of Shaw Kwei & Partners Ltd., jointly announced the proposed voluntary delisting of the Company (the Voluntary Delisting ) from the Official List of the SGX-ST. In connection with the Voluntary Delisting, the Offeror will make a cash exit offer to acquire all of the Company s shares it has not already owned at a price of S$0.18 each. The Voluntary Delisting is subject to approval of shareholders at an extraordinary general meeting to be convened by the Company and the approval of the SGX-ST. Please refer to the joint announcement dated 31 October 2011 by the Company and the Offeror for further details. 18
11. Dividend 股 息 (a) Current Financial Period Reported On 本 财 政 期 Any dividend declared for the current financial period reported on? 本 财 政 期 是 否 宣 布 派 发 任 何 股 息? None 没 有 (b) Corresponding Period of the Immediately Preceding Financial Year 上 一 财 政 年 同 期 Any dividend declared for the corresponding period of the immediately preceding financial year? 上 一 财 政 年 同 期 是 否 宣 布 派 发 任 何 股 息? None 没 有 (c) Date payable 支 付 日 期 Not applicable 不 适 用 (d) Books closure date 截 止 过 户 日 期 Not applicable 不 适 用 12. If no dividend has been declared/recommended, a statement to that effect. 若 不 宣 布 / 建 议 派 发 股 息, 须 作 出 有 关 声 明 No dividend has been declared/recommended for the nine months ended 30 September 2011. 9 个 月 截 止 2011 年 9 月 30 日 并 没 有 宣 布 / 建 议 派 发 股 息 19
PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results) 第 二 部 分 : 全 年 业 绩 公 告 所 需 的 额 外 信 息 ( 本 部 分 不 适 用 于 第 一 第 二 第 三 季 度 或 半 年 业 绩 ) 13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer s most recently audited annual financial statements, with comparative information for the immediately preceding year. ( 集 团 ) 的 业 务 分 部 或 地 理 分 部 的 收 入 及 业 绩, 格 式 以 上 市 公 司 最 新 经 审 计 的 年 度 财 务 报 表 为 准, 并 附 上 年 度 的 对 比 资 料 Not applicable. 不 适 用 14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments. 业 绩 回 顾 中 须 探 讨 导 致 业 务 分 部 Not applicable. 不 适 用 15. A breakdown of sales. 销 售 额 明 细 Not applicable. 不 适 用 16. A breakdown of the total annual dividend (in dollar value) for the issuer s latest full year and its previous full year. 上 市 公 司 本 年 度 及 上 一 年 度 的 总 股 息 明 细 ( 原 值 ) Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details) 年 度 总 股 息 ( 详 见 附 件 7.2 第 16 段 ) Not applicable. 不 适 用 20
17. Confirmation by Directors pursuant to Rule 705(5) of the Listing Manual of the SGX-ST 根 据 新 加 坡 证 券 交 易 所 有 限 公 司 上 市 参 考 手 册 第 705 条 附 例 (5) 要 求 董 事 确 认 事 项 On behalf of the Board of Directors of the Company, we, the undersigned, hereby confirm that, to the best of our knowledge, nothing has come to the attention of the Board of Directors of the Company which may render the financial statements for the third quarter ended 30 September 2011 to be false or misleading in any material aspect. 代 表 本 上 市 公 司 董 事 局, 我 们 ( 为 以 下 面 签 字 人 士 ) 在 此 确 认 我 们 已 根 据 我 们 所 知 情 的 所 有 资 料, 没 有 任 何 事 情 导 致 上 市 公 司 董 事 局 需 要 特 别 的 留 意 那 些 会 引 起 第 三 季 度 财 务 报 告 截 至 2011 年 9 月 30 日 出 现 虚 假 或 误 导 DIRECTORS RESPONSIBILITY STATEMENT The directors of the Company (including any who may have delegated detailed supervision of this Announcement) have taken all reasonable care to ensure that the facts stated and all opinions expressed in this Announcement are fair and accurate and that no material facts have been omitted from this Announcement, and they jointly and severally accept responsibility accordingly. Where any information has been extracted or reproduced from published or otherwise publicly available sources, the sole responsibility of the directors of the Company has been to ensure, through reasonable enquiries, that such information is accurately and correctly extracted from such sources or, as the case may be, accurately reflected or reproduced in this Announcement. BY ORDER OF THE BOARD 承 董 事 局 命 Wong Fung 王 凤 Executive Chairman 执 行 主 席 Yang Shu Xia 杨 淑 霞 Director 董 事 30/11/2011 2011 年 11 月 30 日 21