Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. Tsann Kuen (China) Enterprise Co., Ltd.
Report for the First Quarter of 2016
April 2016
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. Section I Important Statements
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Tsann Kuen (China) Enterprise Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and
severally liable for that.
All directors attended the board session for reviewing this report.
Mr. Pan Zhirong, company principal, and Mr. Feng Zhiqing, head of the accounting work& the accounting division (head of accounting) jointly declare that the financial statements
carried in this report are factual, accurate and complete.
This Report is prepared in both Chinese and English. Should there be any discrepancy
between the two versions, the Chinese version shall prevail.
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. Section II Financial Results and Changes in Shareholders
I Financial results
Whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting policies or correction of accounting errors
√ Yes□ No
Unit: RMB
||||||
|-|-|-|-|-|
|Item|January-March 2016|January-March 2015||+/-%|
|||Before adjustment A|fter adjustment||
|Operating revenues|400,158,372.95|453,454,308.58|453,454,308.58|-11.75|
|Net profit attributable to shareholders ofthe Company|6,272,704.45|7,995,185.44|7,995,185.44|-21.54|
|Net profit attributable to shareholde rs ofthe Company after deducting exceptionalprofit and loss|4,561,371.13|2,993,743.17|2,993,743.17|52.36|
|Net operating cash flow|-21,744,915.13|-36,982,666.95|-36,982,666.95|41.20|
|Basic earnings per share (RMB/share)|0.03|0.04|0.04|-25.00|
|Diluted earnings per share (RMB/share)|0.03|0.04|0.04|-25.00|
|Weighted average return on equity (%)|1.11|1.45|1.45|-0.34|
|Item|31 March 2016|31 December 2015||+/-%|
|||Before adjustment A|fter adjustment||
|Total assets|1,477,675,339.10|1,656,036,577.21|1,662,657,829.11|-11.13|
|Net assets attributable to shareholders ofthe Company|581,986,531.87|559,728,743.98|562,024,410.53|3.55|

Notes to the retroactive adjustment of 2016 opening amount and that of the same period of last year:
On 24 April 2015, the Company held the 2015 2 nd Board of Directors had approved the resolutions, of which the controlling subsidiary Zhangzhou Tsann Kuen Industrial Co., Ltd. (named “Zhangzhou Tsann Kuen” for short with the shareholding of75%) and firstly set up the wholly owned subsidiary Orient Star Investments Limited (named “Orient Star Investments ”) then secondly Orient Star Investments invested and purchased the100% equities of the wholly owned subsidiary Tsannkuen Edge Intelligence Co., Ltd. (named “Tsannkuen Edge Intelligence” for short) of STAR COMGISTIC CAPITAL CO., LTD. (named “STAR COMGISTIC CAPITAL” for short). Orient Star Investments received the relevant letter about approving the purchase of the100% equities of Tsannkuen Edge Intelligence from Taiwan competent authorities on 15 March 2016 and amount that STAR COMGISTIC CAPITAL received the purchase of the whole equities of Tsannkuen Edge Intelligence by Orient Star Investments on 21 March 2016 was of USD968,545.48. And had completed the relevant
alternation procedures of the commercial registration of the equity transfer on 19 April 2016 and with the details, please refer to the
Announcement on the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen Invested on Its Wholly-owned Subsidiary which
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. Purchased the Equity of Tsannkuen Edge Intelligence and the Related Transactions that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 25 April 2015, the Correcting Announcement on the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen Invested on Its Wholly-owned Subsidiary which Purchased the Equity of Tsannkuen Edge Intelligence and the Related Transactions that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 28 April 2015, Announcement on the Completion of the Commercial Registration Procedures of the Hong Kong Wholly-owned Subsidiary of Zhangzhou Tsann Kuen that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 21 May 2015, Announcement on the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen Purchased Tsannkuen Edge Intelligence and the Progress of the Related Transactions that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 16 March 2016 and the Announcement on the Completion of the Commercial Alternation Registration of the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen through the Purchase of Tsannkuen Edge Intelligence by Hong Kong Subsidiary that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 21 April 2016.
According to No. 20 of ASBE - Enterprise Merger, the Transaction formed the enterprise merger under the same control and the main body was regarded as always exist in the previous periods after the merger. The combining party shall adjust the opening amounts and the amounts for the same period of last year of relevant items in the statements.
Total share capital up to the former trading date before the disclosure:
|||
|-|-|
|Total share capital up to the former trading date||
||185,391,680|
|before the disclosure (share)||
|Fully diluted EPS calculated by the ne west share||
||0.03|
|capital (RMB/share)||

Exceptional profit and loss
√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
||Item||January-March 2016|Note|
|Profit/loss on disposal of non-current assets (including offset amount of assetimpairment provisions)||282,768.55|||
||Tax rebates, reductions and exemptions due to approval beyond authority or the lack||||
||of official approval documents||||
||Government grants charged to the profit/loss for the Reporting Period (except for the|507,500.00|||
||government grants closely related to the business of the Company and given at a fixed||||
||quota or amount in accordance with the State’s uniform standards)||||
||Capital occupation charges on non-financial enterprises that are charged to the||||
||profit/loss for the Reporting Period||||
||Profit due to the situation where investment costs for the Company to obtain||||
||subsidiaries, associates and joint ventures are lower than the enjoyable fair value of||||
||identifiable net assets of investees when making investments||||
||Profit/loss on non-monetary asset swap||||
||Profit/loss on entrusting others with investments or asset management||||
||Asset impairment provisions due to acts of God such as natural disasters||||
||Profit/loss on debt restructuring||||
||Restructuring costs in staff arrangement, integration, etc.||||
||Profit/loss on the part over the fair value due to transactions with distinctly unfair||||
||prices||||
||Reporting Period net profit/loss of subsidiaries acquired through business mergers||-2,224,231.59||

Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd.
||||||
|-|-|-|-|-|
||Item||January-March 2016|Note|
|under the same control from period-beginnings to merger dates|||||
||Profit/loss on contingencies irrelevant to the Company’s normal business activities||||
|Profit/loss on fair value changes of transactional financial assets and liabilities &investment profit on disposal of transactional financial assets and liabilities as well asfinancial assets available for sale, except for effectively hedging business related tonormal business operations of the Company||4,083,472.39||Mainly were the|
|||||revenues of selling the|
|||||foreign exchange|
|||||forward transaction|
|||||investment, changes in|
|||||fair value|
||Impairment provision reversal for accounts receivable on which the impairment test is||||
||carried out separately||||
||Profit/loss on entrusted loans||||
||Profit/loss on fair value changes in investing properties of which the subsequent||||
||measurement is carried out adopting the fair value method||||
||Effect on Reporting Period profit/loss when a one-off adjustment is made to Reporting||||
||Period profit/Loss according to requirements of taxation, accounting and other||||
||relevant laws and regulations||||
||Custody fee income when entrusted with operations||||
||Non-operating income and expense other than the above||407,071.56||
||Other profit/loss that meet the definition of exceptional profit/loss||||
||Less: Income tax effects||803,778.20||
||Minority interests effects (after tax)||541,469.39||
||Total||1,711,333.32||

Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable√ Not applicable
II Total number of shareholders at the period-end and shareholdings of top ten shareholders 1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as shareholdings of top ten shareholders
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Total number of preference|||||
|Total number of common shareholders at the|||||shareholders with resumed|||||
|||17,692||||||0||
|period-end|||||voting rights at the|||||
||||||period-end|||||
|Shareholdings of top ten shareholders||||||||||
|||||Number of||Number of|Pledged or frozen shares|||
||Nature of||Shareholding|||||||
|Name of shareholder|shareholder||percentage (%)|shares held||restricted|Status of shares||Number of shares|
|||||||shares held||||
|FORDCHEE DEVELOPMENTLIMITED|Foreigncorporation||29.10%|53,940,530||0||||
||||||||N/A||0|
|EUPA INDUSTRY CORPORATIONLIMITED|Foreigncorporation||13.09%|24,268,840||0||||
||||||||N/A||0|
|GUOTAI JUNANSECURITIES(HONGKONG)|Foreigncorporation||6.16%|11,415,520||0||||
||||||||N/A||0|

Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|LIMITED||||||||||
|FILLMAN INVESTMENTSLIMITED|Foreigncorporation||2.49%|4,621,596|0|||||
||||||||N/A||0|
|WU CHI LI|Foreign naturalperson||1.04%|1,935,000|0|||||
||||||||N/A||0|
|CHEN YONGQUAN|Domesticnatural person||1.02%|1,888,819|0|||||
||||||||N/A||0|
|CHEN YONGQING|Foreign naturalperson||0.77%|1,436,149|0|||||
||||||||N/A||0|
|CHEN LIJUAN|Foreign naturalperson||0.69%|1,287,817|0|||||
||||||||N/A||0|
|SHENWAN HONGYUANSECURITIES (HK) CO., LTD.|Foreigncorporation||0.63%|1,170,051|0|||||
||||||||N/A||0|
|XIE QINGJUN|Domesticnatural person||0.60%|1,112,276|0|||||
||||||||N/A||0|
|Shareholdings of top ten non-restricted shareholders||||||||||
|||||||Variety of shares||||
|Name of shareholder||Number of non-restricted shares held||||||||
|||||||Variety||Number||
|FORDCHEE DEVELOPMENT LIMITED 53,940||,530||||Domestically listed||||
|||||||||53,940,530||
|||||||foreign shares||||
|EUPA INDUSTRY CORPORATION LIMITED||24,268,840||||Domestically listed||||
|||||||||24,268,840||
|||||||foreign shares||||
|GUOTAI JUNAN SECURITIES(HONGKONG)LIMITED||11,415,520||||Domestically listed||||
|||||||||11,415,520||
|||||||foreign shares||||
|FILLMAN INVESTMENTS LIMITED 4,621,596||||||Domestically listed||||
|||||||||4,621,596||
|||||||foreign shares||||
|WU CHI LI 1,935,000||||||Domestically listed||||
|||||||||1,935,000||
|||||||foreign shares||||
|CHEN YONGQUAN 1,888,819||||||Domestically listed||||
|||||||||1,888,819||
|||||||foreign shares||||
|CHEN YONGQING 1,436,149||||||Domestically listed||||
|||||||||1,436,149||
|||||||foreign shares||||
|CHEN LIJUAN 1,287,817||||||Domestically listed||||
|||||||||1,287,817||
|||||||foreign shares||||
|SHENWAN HONGYUAN SECURITIES (HK)CO., LTD.||1,170,051||||Domestically listed||||
|||||||||1,170,051||
|||||||foreign shares||||
|XIE QINGJUN 1,112,276||||||Domestically listed||||
|||||||||1,112,276||
|||||||foreign shares||||
|||The first, the second and the fourth largest shareholders are the Company ’s corporate||||||||
|||controlling shareholders. It is unknown to the Company whether there exists associate d||||||||
|Related or acting-in- concert parties among the||||||||||
|||relationship among the shareholders above or they are acting-in- concert entities as||||||||
|above shareholders||||||||||
|||stipulated in the Administrative Measures on Information Disclosure of Changes in||||||||
|||Shareholding of Listed Companies.||||||||

Did any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conduct any promissory repo during the Reporting Period?
□ Yea√ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top ten of them
□ Applicable√ Not applicable
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. Section III Significant Events
I Changes in major accounting statement items and financial indicators for the Reporting Period, as well as reasons for such changes
√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
|Item 31 March 20|16|31 December 2015(retroactivelyrestated)|+/-% Ma|in reason for change|
|Notes receivable 3,351,938.00||1,483,710.00|125.92|New notes receivable|
|Accounts paid in advance 9,64|4,070.35|16,919,366.87|-43.00|The materials prepaid for were accepted into ourwarehouses upon check.|
|Other accounts receivable 26,0|24,130.69|50,269,802.82|-48.23|Export rebates were received.|
|Other current assets 237,988,3|17.81|89,858,232.99|164.85|Financial products of RMB150 million were purchased.|
|Other non-current assets 3,513|,789.58|6,264,771.15|-43.91|The equipment prepaid for was accepted upon check.|
|Short-term borrowings 2,202,0|03.90|0.00|100.00|Short-term borrowings of subsidiaries increased.|
|Financial liabilities measuredat fair value with fair valuechange charged to the currentprofit and loss|3,367,150.00|8,462,500.00|-60.21|Evaluated loss on forward forex contracts|
|Taxes and fares payable 3,639|,266.52|6,158,817.21|-40.91|Operating revenue decreased.|

||||||
|-|-|-|-|-|
|Item January-Ma|rch 2016|January-March 2015|+/-% M|ain reason for change|
|Business tax and surtaxes 2,42|1,468.97|1,271,419.53|90.45|The taxes n relation to tax offset increased.|
|Financial costs -259,634.93||-6,136,213.61|95.77|Evaluated profit on foreign currencies decreased.|
|Asset impairment loss 1,087,3|00.12|-887,025.98|222.58|Bad-debt provisions made according to our accountingpolicies|
|Returns on investment -1,003,|403.59|1,105,031.80|-190.80|Gains on delivered forward forex contracts decreased.|
|Non-operating revenue 1,204,|888.70|2,229,112.34|-45.95|Governmental subsidies decreased.|
|Corporate income tax 1,860,46|0.96|-378,618.00|591.38|Net profit of subsidiary Tsann Kuen Zhangzhou increased.|
|Net operating cash flow -21,74|4,915.13|-36,982,666.95|41.20|Export rebates increased.|
|Net investment cash flow -180|,176,787.85|-344,206,153.04|47.65|Financial products decreased by RMB180 million.|
|Net financing cash flow -11,62|2,330.69|211,021,879.00|-105.51|Borrowings decreased.|

Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. II Progress of significant events and analysis& explanations on their influence and solutions√ Applicable□ Not applicable
(I) Contingencies
(1) The subsidiary of the Company -TsannKuen (Zhangzhou) Enterprise Co., Ltd. (hereafter, TKL) signed the< Product SupplyAgreement> with XindaElectromechanics Co., Ltd. (hereafter, Xinda) on July 20, 2009. The validity of the contract is from July 1, 2009 to June 30, 2012. Furthermore, on 1 January 2011, they signed the<TsannKuen(Zhangzhou) Enterprise Co., Ltd. 2011 ED ProcurementContract> and relevant<Special ArrangementClauses>, and other agreements. According to those agreements, TKL should purchase products from Xinda. TKL rejected to pay for the purchase and terminated those agreements due to the poor quality products from Xinda. On 2 November 2011, Xinda lodged petition for civil litigation to the Intermediate People ’s Court of Zhangzhou for the order of IntermediatePeople’s Court of Zhangzhou that TKL pay for purchase from Xindaamounting to USD 479,089.06 (CNY 3,071,535.78) immediately together with the liquidated damages for delay payment and resume performance of the agreement (the value of the unperformed agreement amounting to USD 189,423.25).
On 8 January 2012, TKL lodged counterclaim to the Court claiming that due to unsatisfactory quality of goods supplied by Xinda, goods supplied by TKL had been returned from clients and orders cancelled, resulting in substantial financial loss and reputation damage suffered by the TKL. TKL therefore petitioned for the cour order for relief of agreement and that Xinda shall pay to TKL liquidated damage amounting to CNY 1 million together with financial loss amounting to CNY 7.6216 million.
IntermediatePeople’s Court of Zhangzhou made the judgement on 15 August 2013 as follow:
a. TKL should pay goods payments amount USD479, 089.06 to plaintiff Xindawithin 15 days from the date on which the judgement becomes effective, equivalent to CNY3, 071,535.78.
b. Plaintiff Xinda and the third party BoLuoLianyuan industry Co., Ltd. (hereafter Lianyuan)should jointly pay the laquidated damage for CNY1,233,399.70toTKLwithin 15 days from the date on which the judgement becomes effective.
c. Unperformed 10 orders entered into by TKL, Xinda and Lianyuan are declared cancelled.
d. Reject other claims partitioned by the plaintiff Xinda.
e. Reject other claims partitioned by TKL. After the first judgement, both parties appealed against the judgment.
Up to the end of the reporting date, the financial statement of TKL included accounts payable to Xinda amounting to USD 479,089.06. As the second hearing was yet to be finalized, TKL unrecognized contingent assets CNY1,233,399.70 to Xinda.
(2) The subsidiary of the Company - TsannKuen China (Shanghai) Enterprise Co., Ltd. (hereafter, TKS) signed the Plant Leasing contract with Shanghai Liangxin Industrial Co., Ltd. (hereafter, SHLX) at November 2007, and leased the plant (including plant affiliated land, ground buildings and related ancillary equipment, etc) located in No. 4407 Caoan Road Jiading District, Shanghai to SHLX. The real estate certificate of leasehold is Hu Fangdi Jia Zi (2006) No. 011945, the lease period is from November 2007 to November 2019, the purpose to the lessee for the use of legitimate factory and storage. The provisions of contract point out if the lessee need to build plant because of productionshould to obtain government and relevant authorities’agreements. Except to confiscate the deposit, the lessor can terminate the contract and does not have to undertake any responsibilityif the lessee sublease the leasehold, make improvement or addition to the leasehold without to obtain the written consent from lessor.
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. TKS submitted the civil action to Shanghai Jiading District People's Courtby cause of action“the lessee SHLX decorated and subleased the leasehold to Shanghai Hujia Fruit Sales Limited Company (hereafter, SHHJ) without to obtain the written consent from lessor ” on 28 October 2015, and required early termination of the Plant Leasing contract with SHLX, and required SHHJ to terminate constructionand to repristinate the leasehold.
Up to the end of the reporting date, the civil action is still in process.
(II)The transfer progress of TsannKuen China (Shanghai) Enterprise Co., Ltd.
In accordance with integrated consideration of operation, business and investment structure, the Board of Directors of the Company decides to transfer all of its shareholdings of TsannKuen China (Shanghai) Enterprise Co., Ltd. (TKS)(62.5%) to controlling subsidiary TsannKuen (Zhangzhou) Enterprise Co., Ltd. (TKL) by CNY130 million on 27 January 2016, the relevant details disclosed on Transaction
Announcement on Equity Transfer of TKS by the Company on the Securities Times, HongKong Ta Kung Pao and www cninfo.com.cn on 28 January 2016. The TsannKuen (Zhangzhou) Enterprise Co., Ltd.(TKL) had paid50% payment of the equity transfer on 30 March 2016. On 26 April 2016, TKS received the reply of the Shanghai Jiading government concerning its consent to the equity transfer of TKS and the altered approval certificate for foreign-invested enterprise. For details, please refer to the Announcement on Progress on Transfer of Equity Interests in TKS, which has been disclosed on Securities Times, Ta Kung Pao (HK) and www cninfo.com.cn dated 27 April 2016. As of the reporting date, the equity transfer procedure of TsannKuen China (Shanghai) Enterprise Co., Ltd. (TKS) was under processing. (III) Progress of controlling subsidiary TsannKuen (Zhangzhou) Enterprise Co., Ltd. purchase the Equity of Tsannkuen Edge Intelligence Co., Ltd
On 24 April 2015, the Company held the 2015 2 nd Board of Directors had approved the resolutions, of which the controlling subsidiary Zhangzhou Tsann Kuen Industrial Co., Ltd. (named “Zhangzhou Tsann Kuen” for short with the shareholding of75%) and firstly set up the wholly owned subsidiary Orient Star Investments Limited (named “Orient Star Investments ”) then secondly Orient Star Investments invested and purchased the100% equities of the wholly owned subsidiary Tsannkuen Edge Intelligence Co., Ltd. (named “Tsannkuen Edge Intelligence” for short) of STAR COMGISTIC CAPITAL CO., LTD. (named “STAR COMGISTIC CAPITAL” for short). Orient Star Investments received the relevant letter about approving the purchase of the100% equities of Tsannkuen Edge Intelligence from Taiwan competent authorities on 15 March 2016 and amount that STAR COMGISTIC CAPITAL received the purchase of the whole equities of Tsannkuen Edge Intelligence by Orient Star Investments on 21 March 2016 was of USD968,545.48. And had completed the relevant alternation procedures of the commercial registration of the equity transfer on 19 April 2016 and with the details, please refer to the Announcement on the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen Invested on Its Wholly-owned Subsidiary which Purchased the Equity of Tsannkuen Edge Intelligence and the Related Transactions that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 25 April 2015, the Correcting Announcement on the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen Invested on Its Wholly-owned Subsidiary which Purchased the Equity of Tsannkuen Edge Intelligence and the Related Transactions that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 28 April 2015, Announcement on the Completion of the Commercial Registration Procedures of the Hong Kong Wholly-owned Subsidiary of Zhangzhou Tsann Kuen that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 21 May 2015, Announcement on the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen Purchased Tsannkuen Edge Intelligence and the Progress of the Related
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. Transactions that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 16 March 2016 and the Announcement on the Completion of the Commercial Alternation Registration of the Controlling Subsidiary of the Company Zhangzhou Tsann Kuen through the Purchase of Tsannkuen Edge Intelligence by Hong Kong Subsidiary that disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com.cn on 21 April 2016.
||||
|-|-|-|
|Summary Disclosure date Query|index||
|Progressive announcement on complain event of law suit|||
|between the controlling subsidiary and TsannKuen|||
||2014-2-22|www.cninfo.com.cn|
|(Zhangzhou) Enterprise Co., Ltd. and|||
|XindaElectromechanics|||
|The equity transfer progress of TsannKuen China|||
||2016-1-28||
|(Shanghai) Enterprise Co., Ltd.||www.cninfo.com.cn|
||2016-4-27||
||2015-4-252015-4-282015-5-212016-3-162016-4-21||
|Progress of controlling subsidiary TsannKuen|||
|(Zhangzhou) Enterprise Co., Ltd. purchase the Equity of||www.cninfo.com.cn|
|Tsannkuen Edge Intelligence Co., Ltd|||

Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. III Commitments of the Company, its shareholders, actual controller, acquirer, directors,
supervisors, senior management or other related parties fulfilled in the Reporting Period or ongoing at the period-end
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Date of|Term of||
||Commitmen|Type of|||||
|Commitment|||Contents|commitment|commitm|Fulfillment|
||t maker|commitment|||||
|||||making|ent||
|Commitments made in share|||||||
|reform|||||||
|Commitments made in|||||||
|acquisition documents or|||||||
|shareholding alteratio n|||||||
|documents|||||||
|Commitments made in time of|||||||
|asset restructuring|||||||
|Commitments made in time of|||||||
|IPO or refinancing|||||||
|Commitments concerning|||||||
|stock ownership incentive|||||||
||||Based on the confidence on the||||
||||continuous and stable development of||||
|||||||The Company ’s|
||||the Company, it committed to increase||||
|||||||stocks resumed|
||||the shareholding if the Company’s stock||||
|||||||trading on 31|
||||price lower than HKD2.40 per share||||
|||||||Dec. 2012, but|
||||after the implementation of the shares||||
|||||||the Company ’s|
||||contraction and trading resumption, and||Within||
|||||||stock price hasn’t|
||||it would increase no more than 2%||one year||
|||||||met the condition|
||FILLMAN|Commitment|shares (i.e. 3.7078 million shares) of the||since the||
|||||||for shareholding|
|Other commitments made to|INVESTME|on|total shares issued by the Company||date of||
|||||28 Dec. 2012||increase since the|
|minority shareholders|NTS|shareholding|within one year since the date of initial||initial||
|||||||date of trading|
||LIMITED|increase|shareholding increase. If the plan on||sharehold||
|||||||resumption,|
||||increasing holdin g 2% shares of the||ing||
|||||||FILLMAN|
||||total shares is completed, if the stock||increase||
|||||||Investment|
||||price hasn’t reached the target price, it||||
|||||||Limited hasn ’t|
||||will perform relevant approval||||
|||||||implemented the|
||||procedures, and propose to CSRC on||||
|||||||shareholding|
||||continuous implementation of||||
|||||||increase plan.|
||||shareholding increase by exemption of||||
||||offering.||||
|Executed on time|Yes||||||

IV Operating result forecast for January-June 2016
Forecast of a possible deficit or considerable YoY change in the accumulative net profit made during the period from the beginning of the year to the end of the next reporting period, as well as explanation of why:
□Applicable√ Not applicable
V Securities investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. VI Investments in derivative financial instruments
√ Applicable□ Not applicable
Unit:RMB’0,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Operator|Relation|Related-partytransactionor not|Type ofderivativeinvestment|Initialinvestmentamount|Beginningdate|Ending date|Openinginvestmentamount|Impairmentprovision(if any)|Soldamount|Amount oftheprovisionforimpairmentlosses|Closinginvestmentamount|Proportion ofthe closinginvestmentamount intheCompany’sclosing netassets (%)|Actualgain/loss inreportingperiod|
|Bank No N|o||Forwardexchange|27,822.96|1 January2016|31 March2016|27,816.19|0.00 10,0|02.36|17,820|.60|30.62 408.|35|
|Total 27,822.96|||||27,81|6.19||0.00 10,0|02.36|17,820|.60|30.62 408.|35|
|Capital source for derivative investment||||Self-owned funds||||||||||
|Lawsuit situations (if applicable)||||N/A||||||||||
|Disclosure date of the board announcement approvingthe wealth management entrustment||||2013-3-12||||||||||
|Disclosure date of the general meeting announcementapproving the wealth management entrustment||||2013-5-18||||||||||
|Analysis on risks and control measures of derivativeproducts held in the reporting period (including but notlimited to market risk, liquidity risk, credit risk,operation risk, law risk, etc.)||||||||||||||

speculate in derivative trading with hedging as an excuse. The overall contractual amount for risk avoidance of the Company shall not exceed
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. the summation of the net risk exposure of the existing assets and liabilities and the net risk exposure of assets and liabilities arising from the operation of the Company in the coming year.
(2) Staff requirements: Personnel taking part in the investment shall all fully understand the risks of derivative investment and strictly execute the business operation and risk management mechanisms for derivative investment.
(3) Operation standardization: Before making a derivative investment, the Company shall rationally equip itself with professional personnel for investment decision-making, business operation, risk control, etc. It shall also inquire and compare among various markets and products. Besides, it shall strictly control the variety and size of derivative investment and try to choose derivative trading on exchange as much as possible.
(4) Periodic evaluation: Derivative investments shall be evaluated at least twice for a month and the evaluation report shall be sent to a high-ranking executive authorized by the Board of Directors. And a derivative investment report shall be sent to the Board of Directors annually. The Company and its subsidiaries only need to submit to the Board of Directors of the subsidiaries.
(5) Loss limit: The investment loss on a single derivative and all the investment loss shall not exceed20% of the total investment amount. (6) Audit system: The audit department audits derivative product trading periodically and submits audit reports to relevant units.
|||
|-|-|
|Changes of market prices or fair values in the reportingperiod of the invested derivatives. And the analysis onthe fair value of the derivatives should include thespecific use methods and the relevant assumptions andparameters|(1) Profit/loss on delivered derivative financial instruments was RMB-1.0119 million in the Reporting Period, and evaluated loss on undeliveredderivatives was RMB5.0954 million in the Reporting Period, including the reversed evaluated loss of RMB8.4625 million on undeliveredforward exchange instruments of last year.(2) The former contracted bank provided monthly sheets of estimated exchange rates for the undue contracted forward exchanges on the lasttrading day of the month.(3) The profit and loss from fair value changes of the derivative was confirmed according to the difference between the contracted amount undueby the month*the estimated exchange rate and the currency amount when bought in.|
|Whether significant changes occurred to theCompany’s accounting policy and specific accountingprinciples of derivatives in the reporting periodcompared to the previous reporting period|There were no significant changes between the Company ’s accounting policy and specific accounting principles of derivatives in the reportingperiod and those in the last reporting period.|
|Specific opinion from independent directors on theCompany’s derivatives investment and risk control|The Company has carried out a strict internal assessment for the financial derivative business and has established a corresponding supervisionmechanism. We are of the opinion that the financial derivative business conducted by the Company is fairly necessary in its routine operationand is in compliance with relevant laws and regulations, with the risks controllable.|

Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. VII Visits paid to the Company in the Reporting Period for purposes of research,
communication, interview, etc.
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|Index to main inquiry information|
||||Inquiry the reform of B share, and the|
|2016-02-01|Telephone communication|Individual|Company’s equity transfer of TsannKuen|
||||China (Shanghai) Enterprise Co., Ltd.|
||||Inquiry the Company’s equity transfer of|
|2016-02-02|Telephone communication|Individual|TsannKuen China (Shanghai) Enterprise|
||||Co., Ltd.|

VIII Illegal provision of guarantees for external parties
□ Applicable√ Not applicable
IX Occupation of the Company’s funds by the controlling shareholder or its related parties for non-operating purposes
□ Applicable√ Not applicable
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB
||||
|-|-|-|
|Item Closing amount Opening amou|nt||
|Current assets:|||
|Monetary funds 552,005,943.42||756,223,544.72|
|Settlement reserves|||
|Lendings to banks and other financial institutions|||
|Financial assets measured at fair value with fair value changesincluded in the profit and loss for the Reporting Period|||
|Derivative financial assets|||
|Notes receivable 3,351,938.00||1,483,710.00|
|Accounts receivable 164,628,641.90||219,647,979.97|
|Accounts paid in advance 9,644,070.35||16,919,366.87|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract reserves|||
|Interest receivable 998,102.78||1,135,305.55|
|Dividends receivable|||
|Other accounts receivable 26,024,130.69||50,269,802.82|
|Financial assets purchased under agreement to resell|||
|Inventories 223,403,155.60||264,377,787.95|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets 237,988,317.81||89,858,232.99|
|Total current assets 1,218,044,300.55||1,399,915,730.87|
|Non-current assets:|||
|Loans and advances to customers|||
|Available-for-sale financial assets 40,000.00||40,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|||
|Investment property 44,940,427.68||46,185,216.68|
|Fixed assets 177,423,178.51||177,049,198.02|
|Construction in progress 189,814.25||210,796.20|
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets 14,957,382.01||14,136,233.55|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses 4,220,414.42||3,874,638.99|
|Deferred income tax assets 14,346,032.10||14,981,243.65|
|Other non-current assets 3,513,789.58||6,264,771.15|
|Total non-current assets 259,631,038.55||262,742,098.24|
|Total assets 1,477,675,339.10||1,662,657,829.11|
|Current liabilities:|||
|Short-term borrowings 2,202,003.90|||
|Borrowings from the Central Bank|||
|Money deposits accepted and inter-bank deposits|||
|Loans from banks and other financial institutions|||
|Financial liabilities measured at fair value with fair valuechanges included in the profit and loss for the Reporting Period|3,367,150.00|8,462,500.00|
|Derivative financial liabilities|||

Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd.
||||
|-|-|-|
|Item Closing amount Opening amou|nt||
|Notes payable 20,822,647.82||26,974,641.74|
|Accounts payable 424,945,816.94||575,930,730.06|
|Accounts received in advance 18,045,024.02||15,828,556.71|
|Financial assets sold for repurchase|||
|Handling charges and commissions payable|||
|Payroll payable 30,993,636.51||43,386,265.04|
|Taxes and fares payable 3,639,266.52||6,158,817.21|
|Interest payable 1,726.76|||
|Dividends payable|||
|Other accounts payable 65,480,399.31||65,183,344.50|
|Reinsurance premiums payable|||
|Insurance contract reserves|||
|Payables for acting trading of securities|||
|Payables for acting underwriting of securities|||
|Liabilities held for sale|||
|Non-current liabilities due within one year|||
|Other current liabilities|||
|Total current liabilities 569,497,671.78||741,924,855.26|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term accounts payable|||
|Long-term payroll payable|||
|Special payables|||
|Estimated liabilities|||
|Deferred income|||
|Deferred income tax liabilities 241,522.53||242,702.95|
|Other non-current liabilities|||
|Total non-current liabilities 241,522.53||242,702.95|
|Total liabilities 569,739,194.31||742,167,558.21|
|Owners’ equity:|||
|Share capital 185,391,680.00||185,391,680.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserves 296,808,965.78||282,916,698.67|
|Less: Treasury stock|||
|Other composite income 3,028,199.82||3,231,050.04|
|Special reserves|||
|Surplus reserves 20,962,521.51||20,962,521.51|
|Provisions for general risks|||
|Retained profit 75,795,164.76||69,522,460.31|
|Total equity attributable to owners of the Company 581,986,531.87||562,024,410.53|
|Minority interests 325,949,612.92||358,465,860.37|
|Total owners’ equity 907,936,144.79||920,490,270.90|
|Total liabilities and owners’ equity 1,477,675,339.10||1,662,657,829.11|

 Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
r
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. 2. Balance sheet of the Company
Unit: RMB
|||
|-|-|
|Item Closing balance Opening balance||
|Current Assets:||
|Monetary funds 27,314,061.58|7,750,025.58|
|Financial assets measured at fair value with fair value changes included inthe profit and loss for the Reporting Period||
|Derivative financial assets||
|Notes receivable 3,351,938.00|589,835.00|
|Accounts receivable 13,789,357.35|23,997,156.18|
|Accounts paid in advance 757,859.23|1,202,214.48|
|Interest receivable||
|Dividends receivable||
|Other accounts receivable 65,683,872.24|3,010,844.58|
|Inventories 9,049,238.95|11,151,650.93|
|Assets held for sale||
|Non-current assets due within one year||
|Other current assets|55,278.38|
|Total current assets 119,946,327.35|47,757,005.13|
|Non-current assets:||
|Available-for-sale financial assets 40,000.00|40,000.00|
|Held-to-maturity investments||
|Long-term accounts receivable||
|Long-term equity investments 922,914,701.56|985,814,030.83|
|Investment property 38,061,545.72|38,994,677.59|
|Fixed assets 2,228,915.34|2,328,116.94|
|Construction in progress||
|Engineering materials||
|Disposal of fixed assets||
|Productive living assets||
|Oil-gas assets||
|Intangible assets 103,499.99|110,249.99|
|R&D expense||
|Goodwill||
|Long-term deferred expenses 321,866.30|405,866.33|
|Deferred income tax assets 1,855,662.29|18,053,868.00|
|Other non-current assets 13,798.00||
|Total non-current assets 965,539,989.20|1,045,746,809.68|
|Total assets 1,085,486,316.55|1,093,503,814.81|
|Current liabilities:||
|Short-term borrowings||
|Financial liabilities measured at fair value with fair value changes includedin the profit and loss for the Reporting Period||
|Derivative financial liabilities||
|Notes payable||
|Accounts payable 52,100,396.90|66,922,540.32|
|Accounts received in advance 7,541,802.91|2,664,965.52|
|Payroll payable 1,240,975.94|3,390,321.73|
|Taxes and fares payable 329,583.89|966,665.47|
|Interest payable||

Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd.
|||
|-|-|
|Item Closing balance Opening balance||
|Dividends payable||
|Other accounts payable 374,575,829.24|461,663,363.89|
|Liabilities held for sale||
|Non-current liabilities due within one year||
|Other current liabilities||
|Total current liabilities 435,788,588.88|535,607,856.93|
|Non-current liabilities:||
|Long-term borrowings||
|Bonds payable||
|Of which: Preference shares||
|Perpetual bonds||
|Long-term payables||
|Long-term payroll payables||
|Special payables||
|Estimated liabilities||
|Deferred income||
|Deferred income tax liabilities||
|Other non-current liabilities||
|Total non-current liabilities 0.00|0.00|
|Total liabilities 435,788,588.88|535,607,856.93|
|Owners’ equity:||
|Share capital 185,391,680.00|185,391,680.00|
|Other equity instruments||
|Of which: Preference shares||
|Perpetual bonds||
|Capital reserves 271,490,289.82|271,490,289.82|
|Less: Treasury stock||
|Other composite income||
|Special reserves||
|Surplus reserves 20,962,521.51|20,962,521.51|
|Retained profit 171,853,236.34|80,051,466.55|
|Total owners’ equity 649,697,727.67|557,895,957.88|
|Total liabilities and owners’ equity 1,085,486,316.55|1,093,503,814.81|

 Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. 3. Consolidated income statement
Unit: RMB
||||
|-|-|-|
|Item January-March 2016||January-March 2015|
|1. Operating revenues 400,158,372.95||453,454,308.58|
|Including: Sales income 400,158,372.95||453,454,308.58|
|Interest income|||
|Premium income|||
|Handling charge and commission income|||
|2. Total operating costs 395,648,344.39||452,175,584.80|
|Including: Cost of sales 332,766,010.74||395,763,311.66|
|Interest expenses|||
|Handling charge and commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance contract reserves|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Business tax and surtaxes 2,421,468.97||1,271,419.53|
|Selling expenses 21,222,925.10||20,838,172.33|
|Administrative expenses 38,410,274.39||41,325,920.87|
|Financial costs -259,634.93||-6,136,213.61|
|Asset impairment loss 1,087,300.12||-887,025.98|
|Add: Profit/loss on fair value changes (“-” means loss) 5,095,350.00||4,512,085.82|
|Profit/loss on investment (“-” means loss) -1,003,403.59||1,105,031.80|
|Including: Share of profit in associates and joint ventures|||
|Foreign exchange profit (“-” means loss)|||
|3. Operating profit (“-” means loss) 8,601,974.97||6,895,841.40|
|Add: Non-operating income 1,204,888.70||2,229,112.34|
|Including: Profit on disposal of non-current assets|283,856.27|634,432.71|
|Less: Non-operating expense 7,548.59||3,958.89|
|Including: Loss on disposal of non-current assets 1,087.72||3,958.89|
|4. Total profit (“-” means loss) 9,799,315.08||9,120,994.85|
|Less: Corporate income tax 1,860,460.96||-378,618.00|
|5. Net profit (“-” means loss) 7,938,854.12||9,499,612.85|
|Of which: net profits realized by combined party before combination -2,224,231.5|9||
|Net profit attributable to owners of the Company 6,272,704.45||7,995,185.44|
|Minority shareholders’ income 1,666,149.67||1,504,427.41|
|6. After-tax net amount of other composite income -270,466.96||335,660.20|
|After-tax net amount of other composite income attributable to owners of theCompany|-202,850.22|251,745.15|
|6.1 Other composite income that will not be reclassified into profit and loss|||
|6.1.1 Changes in net liabilities or assets with a defined benefit plan uponre-measurement|||
|6.1.2 Enjoyable share in other comprehensive income in investees thatcannot be reclassified into profit and loss under the equity method|||
|6.2 Other composite income that will be reclassified into profit and loss -202,850.2|2|251,745.15|
|6.2.1 Enjoyable share in other composite income in investees that will bereclassified into profit and loss under the equity method|||
|6.2.2 Profit and loss on fair value changes of available-for-sale financialassets|||
|6.2.3 Profit and loss on reclassifying held-to-maturity investments intoavailable-for-sale financial assets|||

Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd.
||||
|-|-|-|
|Item January-March 2016||January-March 2015|
|6.2.4 Effective hedging profit and loss on cash flow|||
|6.2.5 Foreign-currency financial statement translation difference -202,850.22||251,745.15|
|6.2.6 Other|||
|After-tax net amount of other composite income attributable to minorityshareholders|-67,616.74|83,915.05|
|7. Total composite income 7,668,387.16||9,835,273.05|
|Attributable to owners of the Company 6,069,854.23||8,246,930.59|
|Attributable to minority shareholders 1,598,532.93||1,588,342.46|
|8. Earnings per share|||
|8.1 Basic earnings per share 0.03||0.04|
|8.2 Diluted earnings per share 0.03||0.04|

 Where business mergers under the same control occurred in the Reporting Period, net profit achieved by the merged parties before the business mergers was RMB-2,224,231.59, with the corresponding amount for the same period of last year being RMB0.00.
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. 4. Income statement of the Company
Unit: RMB
|||
|-|-|
|Item January-March 2016|January-March 2015|
|1. Operating revenues 21,271,402.42|41,751,218.62|
|Less: Operating costs 14,745,029.67|34,658,665.63|
|Business tax and surtaxes 291,003.83|259,261.49|
|Selling expenses 2,306,282.89|2,087,654.04|
|Administrative expenses 3,168,759.81|2,514,621.15|
|Financial costs -14,206.99|-19,857.02|
|Asset impairment loss 472,593.00|-981,415.14|
|Add: profit/loss on fair value changes (“-” means loss)||
|Profit/loss on investment (“-” means loss) 107,582,142.80||
|Including: Income from investment on associates and joint ventures||
|2. Operating profit (“-” means loss) 107,884,083.01|3,232,288.47|
|Add: Non-operating income 115,892.49|24,799.69|
|Including: Profit on disposal of non-current assets||
|Less: Non-operating expense||
|Including: Loss on disposal of non-current assets||
|3. Total profit (“-” means loss) 107,999,975.50|3,257,088.16|
|Less: Corporate income tax 16,198,205.71|238,153.49|
|4. Net profit (“-” means loss) 91,801,769.79|3,018,934.67|
|5. After-tax net amount of other composite income||
|5.1 Other composite income that will not be reclassified into profit and loss||
|5.1.1 Changes in net liabilities or assets with a defined benefit plan uponre-measurement||
|5.1.2 Enjoyable share in other composite income in investees that cannot bereclassified into profit and loss under the equity method||
|5.2 Other composite income that will be reclassified into profit and loss||
|5.2.1 Enjoyable share in other composite income in investees that will bereclassified into profit and loss under the equity method||
|5.2.2 Profit and loss on fair value changes of available-for-sale financial assets||
|5.2.3 Profit and loss on reclassifying held-to-maturity investments intoavailable-for-sale financial assets||
|5.2.4 Effective hedging profit and loss on cash flow||
|5.2.5 Foreign-currency financial statement translation difference||
|5.2.6 Other||
|6. Total composite income 91,801,769.79|3,018,934.67|

 Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. 5. Consolidated cash flow statement
Unit: RMB
||||
|-|-|-|
|Item January-March 2016 Januar|y-March 2015||
|1. Operating cash flow:|||
|Cash received from sale of commodities and rendering ofservice|446,984,396.18|456,218,930.18|
|Net increase in money deposits from customers andinter-bank placements|||
|Net increase in loans from the Central Bank|||
|Net increase in funds borrowed from other financialinstitutions|||
|Cash received from premium of original insurancecontracts|||
|Net cash received from reinsurance business|||
|Net increase in deposits of policy holders and investmentfund|||
|Net increase in disposal of financial assets measured at fairvalue with fair value changes included in the profit and lossfor the Reporting Period|||
|Cash received from interest, handling charges andcommissions|||
|Net increase in loans from banks and other financialinstitutions|||
|Net increase in funds in repurchase business|||
|Tax refunds received 60,112,623.06||42,054,356.30|
|Other operating cash received 15,979,818.57||13,379,113.73|
|Subtotal of operating cash inflow 523,076,837.81||511,652,400.21|
|Cash paid for goods and services 433,353,207.67||429,098,615.82|
|Net increase in loans and advances to customers|||
|Net increase in funds deposited in the Central Bank andinter-bank placements|||
|Cash for paying claims of original insurance contracts|||
|Cash for paying interest, handling charges andcommissions|||
|Cash for paying policy dividends|||
|Cash paid to and for employees 69,738,370.16||69,021,103.17|
|Taxes and fares paid 7,057,054.50||7,202,670.98|
|Other cash payment relating to operating activities 34,673,120|.61|43,312,677.19|
|Subtotal of operating cash outflow 544,821,752.94||548,635,067.16|
|Net operating cash flow -21,744,915.13||-36,982,666.95|
|2. Investment cash flow:|||
|Cash received from retraction of investments -1,011,877.61||7,054,031.80|
|Cash received from return on investments|||
|Net cash received from disposal of fixed assets, intangibleassets and other long-term assets|4,916,418.16|1,720,653.22|
|Net cash received from disposal of subsidiaries or otherbusiness units|||
|Other cash received relating to investment activities 55,400,0|00.00|476,499,000.00|
|Subtotal of investment cash inflow 59,304,540.55||485,273,685.02|
|Cash paid to acquire fixed assets, intangible assets andother long-term assets|17,423,362.34|18,208,205.43|
|Cash paid for investment 156,257,966.06||330,000,000.00|

Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd.
||||
|-|-|-|
|Item January-March 2016 Januar|y-March 2015||
|Net increase in pledged loans|||
|Net cash paid to acquire subsidiaries and other businessunits|||
|Other cash payments relating to investment activities 65,800,0|00.00|481,271,632.63|
|Subtotal of investment cash outflow 239,481,328.40||829,479,838.06|
|Net investment cash flow -180,176,787.85||-344,206,153.04|
|3. Financing cash flow:|||
|Cash received from capital contributions|||
|Including: Cash received from m inority shareholderinvestments by subsidiaries|||
|Cash received as borrowings 2,202,002.00||272,756,272.00|
|Cash received from issuance of bonds|||
|Other financing cash received|||
|Subtotal of financing cash inflow 2,202,002.00||272,756,272.00|
|Repayment of borrowings||61,422,000.00|
|Cash paid for interest expenses and distribution ofdividends or profit|13,824,332.69|312,393.00|
|Including: dividends or profit paid by subsidiaries tominority shareholders|||
|Other cash payments relating to financing activities|||
|Sub-total of financing cash outflow 13,824,332.69||61,734,393.00|
|Net financing cash flow -11,622,330.69||211,021,879.00|
|4. Effect of foreign exchange rate changes on cash and cashequivalents|-1,105,956.60|476,241.25|
|5. Net increase in cash and cash equivalents -214,649,990.27||-169,690,699.74|
|Add: Opening balance of cash and cash equivalents 675,855|,933.69|469,965,448.01|
|6. Closing balance of cash and cash equivalents 461,205,943.4|2|300,274,748.27|

 Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
Report for the First Quarter of 2016 of Tsann Kuen (China) Enterprise Co., Ltd. 6. Cash flow statement of the Company
Unit: RMB
||||
|-|-|-|
|Item January-March 2016 January-Ma|rch 2015||
|1. Operating cash flow:|||
|Cash received from sale of commodities and rendering of service 34,01|1,853.31|40,970,463.10|
|Tax refunds received|||
|Other operating cash received 12,639,614.14||11,797,781.95|
|Subtotal of operating cash inflow 46,651,467.45||52,768,245.05|
|Cash paid for goods and services 28,594,423.79||31,932,105.35|
|Cash paid to and for employees 4,962,672.42||2,328,732.56|
|Taxes and fares paid 1,606,283.12||1,916,581.82|
|Other operating cash payments 97,383,180.93||10,798,107.99|
|Subtotal of operating cash outflow 132,546,560.26||46,975,527.72|
|Net operating cash flow -85,895,092.81||5,792,717.33|
|2. Investment cash flow:|||
|Cash received from retraction of investments 65,000,000.00|||
|Cash received from return on investments|||
|Net cash received from disposal of fixed assets, intangible assetsand other long-term assets|||
|Net cash received from disposal of subsidiaries or other businessunits|||
|Other cash received relating to investment activities|||
|Subtotal of investment cash inflow 65,000,000.00||0.00|
|Cash paid to acquire fixed assets, intangible assets and otherlong-term assets|13,798.00|119,052.90|
|Cash paid for investment 1,000,000.00|||
|Net cash paid to acquire subsidiaries and other business units|||
|Other investment cash payments|||
|Subtotal of investment cash outflow 1,013,798.00||119,052.90|
|Net investment cash flow 63,986,202.00||-119,052.90|
|3. Financing cash flow:|||
|Cash received from capital contributions 41,472,998.07|||
|Cash received as borrowings|||
|Cash received from issuance of bonds|||
|Other financing cash received|||
|Subtotal of financing cash inflow 41,472,998.07|||
|Repayment of borrowings|||
|Cash paid for interest expenses and distribution of dividends orprofit|||
|Other cash payments relating to financing activities|||
|Sub-total of financing cash outflow|0.00|0.00|
|Net financing cash flow 41,472,998.07||0.00|
|4. Effect of foreign exchange rate changes on cash and cashequivalents|-71.26|1,563.46|
|5. Net increase in cash and cash equivalents 19,564,036.00||5,675,227.89|
|Add: Opening balance of cash and cash equivalents 7,750,025.58||3,236,270.65|
|6. Closing balance of cash and cash equivalents 27,314,061.58||8,911,498.54|

 Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
IIAuditor’s report
Is this Report audited?
□ Yes√ No
This Report is not audited.