Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Report for the Third Quarter of 2014
October 2014
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. Section I. Important Reminders
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. Wu Yanru, 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 Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. Section II. Financial Highlights& Change of Shareholders
I. Major accounting data and financial indexes
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
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||31 Dec. 2013|||
|||||Increase/decrease|
|Item|30 Sept. 2014||||
|||Before adjustment|After adjustment|(%)|
|Total assets|1,973,760,692.71|1,690,801,284.83|1,690,801,284.83|16.74|
|Net assets attributable to shareholders of the|533,787,088.42|520,693,211.26|520,693,211.26|2.51|
|Company|||||
|||||YoY|
|||YoY|||
|Item|Jul.-Sept. 2014||Jan.-Sept. 2014|increase/decrease|
|||increase/decrease (%)|||
|||||(%)|
|Operating revenues|544,321,965.08|-6.78|1,434,538,264.59|-1.86|
|Net profit attributable to shareholders of the Company|23,906,043.41|22.01|38,764,033.17|29.13|
|Net profit attributable to shareholders of the Company|14,878,507.92|48.63|31,926,110.61|197.87|
|after extraordinary gains and losses|||||
|Net cash flows from operating activities|-26,465,562.40|-128.15|-59,545,501.43|-294.42|
|Basic EPS|0.13|18.18|0.21|31.25|
|Diluted EPS|0.13|18.18|0.21|31.25|
|Weighted average ROE (%)|4.48|0.54|7.30|1.26|

 Notes: Retrospect and adjust the reclassification of the items of the long-term equity investment of the year-begin into the
available-for-sale financial assets according to the execution of the newly revised ASBE from 1 Jul. 2014, of which the affected
amount was of RMB 40,000.
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. Items and amounts of extraordinary gains and losses
√Applicable□Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount as of Jan.-Sept. 2014|Note|
|Gains/losses on the disposal of non- current assets (including the offset|1,626,802.03||
|part of asset impairment provisions)|||
|Tax rebates, reductions or exemptions due to approval beyond authority|||
|or the lack of official approval documents|||
|Government grants recognized in the current period, except for those|2,907,997.00||
|acquired in the ordinary course of business or granted at certain quotas|||
|or amounts according to the country’s unified standards|||
|Capital occupation charges on non-financial enterprises that record ed|||
|into current gains and losses|||
|Gains due to that the investment costs for the Company to obtain|||
|subsidiaries, associates and joint ventures are lower than the enjoyable|||
|fair value of the identifiable net assets of the investees when making the|||
|investments|||
|Gain/loss on non-monetary asset swap|||
|Gain/loss on entrusting others with investments or asset management|||
|Asset impairment provisions due to acts of God such as natural disasters|||
|Gain/loss on debt restructuring|||
|Expenses for business reorganization, such as expenses for staffing,|||
|reorganization etc.|||
|Gain/loss on the part over the fair value due to transactions with|||
|distinctly unfair prices|||
|Current gains and losses of subsidies acquired from business|||
|combination under the same control as from period- begin to|||
|combination date|||
|Gain/loss on contingent events irrelevant to the Company ’s normal|||
|business|||
|Gains and losses on change in fair value from tradable financial assets|-1,164,083.02|Gains on sale of forwardexchange con tracts, fairvalue changes, wealthmanagement products andother current assets|
|and tradable financial liabilities, as well as investme nt income from|||
|disposal of tradable financial assets and tradable financial liabilities and|||
|financial assets available for sales, except for effective hedging related|||
|with normal businesses of the Company|||
|Reversal of impairment provisions for the accounts receivable on which|||
|impairment tests were carried out separately|||
|Gain/loss on external entrustment loans|||
|Gain/loss on change of the fair value of investing real estate of which|||
|the subsequent measurement is carried out adopting the fair value|||
|method|||
|Effect on current gains/losses when a one- off adjustment is made to|||
|current gains/losses according to requirements of taxation, accounting|||
|and other relevant laws and regulations|||
|Custody fee income when entrusted with operation|||
|Non-operating incomes and expenses other than the above 6,153,238.27|||
|Other gain/loss items that meet the definition of an extraordinary|1,285,415.02|Payments from customersthat had been written offwere recovered|
|gain/loss|||
|Less: Income tax effects 1,013,217.11|||
|Minority interests effects (after tax) 2,958,229.63|||
|Total 6,837,922.56|||

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable√ Inapplicable
In the reporting period, the Company did not classify any extraordinary gain/loss item as defined or particularized in the
<Explanatory Public Notice No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary
Gains andLosses> as a recurrent gain/loss item.
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. II. Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the period-end
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of common shareholders at the period-end 23,9||||81||||
|Shareholdings of the top ten common shareholders||||||||
||||||Number of|Pledged or frozen shares||
|Name of|Nature of|Shareholding|Number of the|||||
|shareholder|shareholder|percentage (%)|shares held||restricted shares|Status of shares|Number of shares|
||||||held|||
|FORDCHEEDEVELOPMENT LIMITED|Foreigncorporation|29.10|5,394,0530||0|||
|EUPAINDUSTRYCORPORATIONLIMITED|Foreigncorporation|13.83|25,633,718||0|||
|FILLMANINVESTMENTSLIMITED|Foreigncorporation|2.49|4,621,596||0|||
|Chen Yongquan|Domesticindividual|0.90|1,668,747||0|||
|Xia Qianru|Foreignindividual|0.70|1,299,545||0|||
|Zou Shilin|Foreignindividual|0.56|1,030,000||0|||
|Chen Lijuan|Foreignindividual|0.55|1,012,791||0|||
|Ding Xiaolun|Domesticindividual|0.55|1,010,518||0|||
|Chen Yongqing|Foreignindividual|0.53|981,598||0|||
|CSCSECURITIES(HK) LTD.|Foreigncorporation|0.43|789,212||0|||
|Shareholdings of the top ten circulating shareholders||||||||
|||||||Type of shares||
|Name of shareholder||Number of circulating shares held at the period-end||||||
|||||||Type|Number|
|FORDCHEE DEVELOPMENTLIMITED||53,940,530||||Domestically||
|||||||listed foreign|53,940,530|
|||||||shares||
|EUPA INDUSTRYCORPORATION LIMITED||25,633,718||||Domestically||
|||||||listed foreign|25,633,718|
|||||||shares||
|FILLMAN INVESTMENTSLIMITED||4,621,596||||Domestically||
|||||||listed foreign|4,621,596|
|||||||shares||
|Chen Yongquan 1,668,747||||||Domestically||
|||||||listed foreign|1,668,747|
|||||||shares||
|Xia Qianru 1,299,545||||||Domestically||
|||||||listed foreign|1,299,545|
|||||||shares||
|Zou Shilin 1,030,000||||||Domestically||
|||||||listed foreign|1,030,000|
|||||||shares||

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
|||||
|-|-|-|-|
|Chen Lijuan 1,012,791||Domestically||
|||listed foreign|1,012,791|
|||shares||
|Ding Xiaolun 1,010,518||Domestically||
|||listed foreign|1,010,518|
|||shares||
|Chen Yongqing 981,598||Domestically||
|||listed foreign|981,598|
|||shares||
|CSC SECURITIES (HK) LTD. 789,2|12|Domestically||
|||listed foreign|789,212|
|||shares||
|Explanation on associated|The top three shareholders are the Company ’s corporate controlling shareholders. It is|||
|relationship or persons acting in|unknown whether the other shareholders of tradable shares are related parties or|||
|concert among the above-mentioned|acting-in-concert parties as prescribed in the Administrative Methods for Disclosure of the|||
|shareholders|Shareholding Changes of the Listed Company’s Shareholders.|||

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carry out any agreed buy-back in the reporting period?
□ Yes√ No
None of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carried out any agreed buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred share holders at the period-end
□ Applicable√ Inapplicable
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|30 Sept. 2014 31|Dec. 2013|Increase/decrease(%)|Main reason for the change|
|Financial assets measured at fairvalue and of which changes arerecorded into current gains andlosses|0.00|21,120,100.00|-100.00|Reversed evaluation of the forward exchange contractsundelivered at the beginning of the year|
|Notes receivable 3,427,489.20||2,467,447.00|38.91|Notes receivable were undue in the current period.|
|Prepayments 16,852,608.37||4,290,802.70|292.76|Raw material procurement increased.|
|Interest receivable 10,484,684.49||110,833.33|9,359.87|Term deposits increased.|
|Other current assets 270,000,000.00||50,000,000.00|440.00|Wealth management products purchased increased.|
|Construction in progress 212,639.80||10,889,671.98|-98.05|Plants were completed and transferred into fixed assets.|
|Other non-current assets 2,184,777.0|8|0.00|100.00|Prepayments for molds and equipment|
|Short-term borrowings 295,320,000.|00|30,484,500.00|868.75|Short-term bank borrowings increased.|
|Financial liabilities measured at fairvalue and of which changes arerecorded into current gains andlosses|490,050.00|0.00|100.00|The evaluated loss on the undelivered forwardexchange contracts at the end of the reporting period|
|Accounts received in advance 15,85|5,193.18|10,431,654.59|51.99|Advances from customers increased.|
|Taxes and fares payable -2,980,295.|71|-17,127,309.97|82.60|The export rebates of last year were taken back in thecurrent period.|
|Interest payable 3,270,214.70||108,661.00|2,909.56|Short-term borrowings increased.|
|Other payables 181,330,112.45||69,376,770.31|161.37|Borrowings from related parties|
|Deferred income tax liabilities 217,3|33.34|3,258,742.65|-93.33|The forward exchange contracts at the beginning of theyear failed to generate the expected earnings.|
|Other non-current liabilities 0.00||222,600.00|-100.00|The education fee exemption subsidy was recognizedin the current period.|

||||||
|-|-|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|Increase/decrease(%)|Main reason for the change|
|Business tax and surtaxes 8,249,924.|72|3,167,114.06|160.49|The business tax and surtaxes on the exempted, offsetand refunded export tax in the current period|
|Financial expenses -14,125,625.27||4,528,411.70|-411.93|RMB depreciated, and exchange earnings increased, aswell as the interest income.|
|Asset impairment loss 3,558,992.34||10,661,968.28|-66.62|Some payments were collected from customers and theinventory falling price provisions decreased.|
|Gains on fair value changes -21,610,|150.00|15,628,971.85|-238.27|The evaluated loss on the undelivered forwardexchange contracts in the current period|
|Investment gains 20,446,066.98||8,157,579.03|150.64|Gains on delivered forward exchange contracts andwealth management products|
|Non-business incomes 11,558,038.2|1|7,133,255.72|62.03|Collection of previous rents in the current period|
|Income tax expenses 4,669,389.24||7,399,199.63|-36.89|Measurement and treatment according to the articlesabout the income tax in the accounting standards forbusiness enterprises|
|Net cash flows from operatingactivities|-59,545,501.43|30,626,995.25|-294.42|The export rebates and the sales income decreased.|
|Net cash flows from investingactivities|-841,214,480.14|-191,851,701.86|-338.47|Wealth management products and restricted termdeposits increased.|

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. II. Progress and influence of significant events, as well as the analysis and explanation on
solutions
√ Applicable□ Inapplicable
(I) Contingency
Tsann Kuen Zhangzhou, one of the Company’s subsidiaries, and Xinda Motor Co., Ltd. (hereinafter refer to as “Xinda Motor”) signed a product supply contract on 20 Jul. 2009, with thee valid period for the contract being from 1 Jul. 2009 to 30 Jun. 2012. Both parties also signed the 2011 ED Procurement Contract of Tsann Kuen Zhangzhou Enterprises Co., Ltd., the Special Agreement and other agreements, according to which Tsann Kuen Zhangzhou would purchase products from Xinda Motor. Later, Tsann Kuen
Zhangzhou refused to pay for the products and chose to terminate the contract due to quality problems found in Xinda Motor ’s products. On 2 Nov. 2011, Xinda Motor filed a civil action against Tsann Kuen Zhangzhou to Zhangzhou Intermediate People ’s Court, asking the court to order Tsann Kuen Zhangzhou to payUS$479,089.06 (amounted to RMB 3,071,535.78) to it for the part of the contract that had been executed but not yet paid for, to bear the damages for overdue payment, and to continue to execute the
unexecuted contractual obligation (equivalent to a payment ofUS$189,423.25 for goods).
Tsann Kuen Zhangzhou filed a cross action on 8 Jan. 2012. Xinda Motor had caused serious economic loss and reputation damage on Tsann Kuen Zhangzhou for the products it provided for Tsann Kuen Zhangzhou did not go with the contract, due to which Tsann Kuen Zhangzhou produced products of ill quality, goods were returned and orders were canceled. On that basis, Tsann Kuen
Zhangzhou asked Zhangzhou Intermediate People’s Court to terminate the contract between both parties and order Xinda Motor to pay to Tsann Kuen Zhangzhou a damage of RMB 100 million, and a compensation of RMB 7,621,576.
Zhangzhou IntermediatePeople’s Court had made the first-instance judgment on 15Aug. 2013, the judgment was as followed: (1) The accuse Tsann Kuen Zhangzhou should pay US$479089.06 which was RMB 3,071,535.78of payment for goods to Xinda Motor within 15 days from the day of the enforcement of this judgment. (2) The accuser Xinda Motor and third party Boluo county Lian Yuan Industry Technology Co., Ltd. should pay RMB 1,233,399.70 of liquidated damages to Tsann Kuen Zhangzhou within 15 days from the day of the enforcement of this judgment. (3) Released 10 batch orders that unredeemed between Xinda Motor, Boluo county Lian Yuan Industry Technology Co., Ltd. and Tsann Kuen Zhangzhou. (4) Reject other claims of Xinda Motor. (5) Reject other claims of Tsann Kuen Zhangzhou. After the first-instance judgment, neither party refused to accept the first-instance judgment and lodged an appeal. As of the date of the report, Tsann Kuen Zhangzhou should pay the book balance of goods US$ 479,089.06 to
Xinda Motor, due to the case is pending; Tsann Kuen Zhangzhou did not recognize the contingent assets RMB 1,233,399.70 to Xinda Motor.
Besides, the defective motor products provided by Xinda Motor was in total of 104,691 sets, however, the case processing 23,035 sets only, there were 81,656 sets remained untreated. Thus, on 24 Dec. 2013, Tsann Kuen Zhangzhou filed a suit to Zhangzhou
IntermediatePeople’s Court, and the claims amount was in total of RMB 3,702,957.93. Zhangzhou Intermediate People’s Court has accepted the case.
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. (II) Sales of assets
List of the disposal of the Company which owning to the operation business was as following:
Unit: RMB Ten Thousand Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Transactionparty|Assets sold|Disposaldate|Transaction price|Net profitcontributedto theCompanyfrom theperiod-beginto thedisposaldate|Impactto thecompany|Ratio ofthe netprofitscontributed by theasset to theCompanyto the totalprofits (%)|Pricing principle|Related-party transactionor not|Relationship betweenthetransactionparty andtheCompany(applicableforrelated-partytransactions)|Whetheror not theownership of theassetinvolvedhas beenfullytransferred|Whetheror notthecreditor’s rightandliabilitiesinvolvedhavebeenfullytransferred|Disclosuredate|Disclosure index|
|Tsann Kuen(China)Enterprise Co.,Ltd.|Otherequipments|2014.01.24|10.01|1.17|1.17|0.03|Based on the marketprice, and settledaccording contractsigned by bothparties|Relatedenterprise|Undercontrol ofthe sameactualcontroller|Yes Ye|s 2014.08|.09|www.cninfo.com.cn|
|HAVELLS Mo|uld 2014.02.28||42.75|35.28|35.28|0.91||Non-relatedenterprise|Inapplicable|||||
|Pinrui|Hardequipments|2014.02.28|8.70|7.28|7.28|0.19||||||||
|Duobite|Otherequipments|2014.02.28|0.64|0.55|0.55|0.01||||||||
|Hailong|Otherequipments|2014.02.28|1.20|1.03|1.03|0.03||||||||
|Sungwon|Otherequipments|2014.02.28|2.40|2.05|2.05|0.05||||||||
|YuejiaElectron|Moldingequipments|2014.03.31|6.50|1.34|1.34|0.03||||||||
|Yixin|Otherequipments|2014.03.31|0.15|0.13|0.13|0.00||||||||
|Yixin|Hardequipments|2014.03.31|0.80|0.78|0.78|0.02||||||||
|Fushun|Hardequipments|2014.03.31|11.00|9.61|9.61|0.25||||||||
|Huaruixing|Bakeliteequipments|2014.03.31|1.79|1.71|1.71|0.04||||||||
|YuejiaElectron|Otherequipments|2014.04.30|6.50|1.44|1.44|0.04||||||||
|Yixin|Moldingequipments|2014.04.30|1.17|1.12|1.12|0.03||||||||
|Tu Yibin|Moldingequipments|2014.04.30|2.50|2.45|2.45|0.06||||||||
|Tu Yibin|Bakelite|2014.04.30|10.00|3.12|3.12|0.08||||||||

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Transactionparty|Assets sold|Disposaldate|Transaction price|Net profitcontributedto theCompanyfrom theperiod-beginto thedisposaldate|Impactto thecompany|Ratio ofthe netprofitscontributed by theasset to theCompanyto the totalprofits (%)|Pricing principle|Related-party transactionor not|Relationship betweenthetransactionparty andtheCompany(applicableforrelated-partytransactions)|Whetheror not theownership of theassetinvolvedhas beenfullytransferred|Whetheror notthecreditor’s rightandliabilitiesinvolvedhavebeenfullytransferred|Disclosuredate|Disclosure index|
||equipments|||||||||||||
|Pan Xibao|Otherequipments|2014.04.30|0.50|0.48|0.48|0.01||||||||
|DARMONO|Electronicequipments|2014.05.10|6.33|-0.21|-0.21|-0.01||||||||
|Hewang|Bakeliteequipments|2014.05.31|6.45|0.72|0.72|0.02||||||||
|Haikun Mould|2014.05.31||1.00|0.98|0.98|0.03||||||||
|Wankun|Moldingequipments|2014.05.31|4.00|0.96|0.96|0.02||||||||
|Huasheng|Bakeliteequipments|2014.05.31|1.00|0.98|0.98|0.03||||||||
|Qiankun|Hardequipments|2014.05.31|25.00|8.24|8.24|0.21||||||||
|Xindongbao|Otherequipments|2014.05.31|0.20|0.17|0.17|0.00||||||||
|Hongyuan Mou|ld 2014.05.31||5.37|4.98|4.98|0.13||||||||
|Wang Zhibiao|Moldingequipments|2014.05.31|1.00|0.98|0.98|0.03||||||||
|Baifeng|Moldingequipments|2014.05.31|3.50|2.79|2.79|0.07||||||||
|Li Qinghua|Otherequipments|2014.05.31|50.00|1.47|1.47|0.04||||||||
|DARMONO|Electronicequipments|2014.06.23|2.74|-0.05|-0.05|0.00||||||||
|Yixin|Die castingequipments|2014.06.30|3.42|3.33|3.33|0.09||||||||
|Kailianxing|Die castingequipments|2014.06.30|5.27|5.02|5.02|0.13||||||||
|Hongyuan Mou|ld 2014.06.30||7.86|7.67|7.67|0.20||||||||
|Golden Lance|Hardequipments|2014.06.30|2.50|2.44|2.44|0.06||||||||
|YangXiaodong|Building 2014|.06.30|46.70|43.11|43.11|1.11||||||||

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Transactionparty|Assets sold|Disposaldate|Transaction price|Net profitcontributedto theCompanyfrom theperiod-beginto thedisposaldate|Impactto thecompany|Ratio ofthe netprofitscontributed by theasset to theCompanyto the totalprofits (%)|Pricing principle|Related-party transactionor not|Relationship betweenthetransactionparty andtheCompany(applicableforrelated-partytransactions)|Whetheror not theownership of theassetinvolvedhas beenfullytransferred|Whetheror notthecreditor’s rightandliabilitiesinvolvedhavebeenfullytransferred|Disclosuredate|Disclosure index|
|Hongyuan Mou|ld 2014.07.31||0.80|0.78|0.78|0.02||||||Inapplicable|Inapplicable|
|Yufeng Mould|2014.07.31||0.80|0.78|0.78|0.02||||||||
|Haikun Mould|2014.07.31||1.05|1.02|1.02|0.03||||||||
|Xu Huipeng|Machineryequipments|2014.07.31|17.50|11.16|11.16|0.29||||||||
|Chuangyi|Machineryequipments|2014.07.31|13.00|4.81|4.81|0.12||||||||
|Hongyuan Mou|ld 2014.08.31||10.81|10.50|10.50|0.27||||||||
|Haikun Mould|2014.08.31||3.05|2.92|2.92|0.08||||||||
|Sangmao|Transportation equipments|2014.08.31|8.07|7.91|7.91|0.20||||||||
|Yixin Mould 20|14.09.30||4.00|3.80|3.80|0.10||||||||
|Ruicheng Moul|d 2014.09.30||2.25|2.18|2.18|0.06||||||||
|Hongyuan Mou|ld 2014.09.30||6.60|6.45|6.45|0.17||||||||
|Honger|Machineryequipments|2014.09.30|21.00|1.21|1.21|0.03||||||||
|Rao Yumei|Machineryequipments|2014.09.30|1.10|0.14|0.14|0.00||||||||
|Hongyuan Mou|ld 2014.09.30||2.14|2.08|2.08|0.05||||||||
|Pan Xibao|Otherequipments|2014.09.30|1.50|1.47|1.47|0.04||||||||
|Shunkun|Otherequipments|2014.09.30|4.50|4.41|4.41|0.11||||||||
|Jingjing|Otherequipments|2014.09.30|1.60|1.57|1.57|0.04||||||||
|Pinrui|Otherequipments|2014.09.30|1.80|1.77|1.77|0.05||||||||
|Jingjing|Machineryequipments|2014.09.30|6.00|5.84|5.84|0.15||||||||
|Total 386|.52|||223.92|223.92|5.77||||||||

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. (III) Events of the sales of stock odd lots
According to the Notes of Relevant Events of Sales of Stock Odd Lots issued in Jul. 2014 by Shenzhen Branch of SCDC: before 12 Nov. 2001, when adopting the circulated transfer method on the odd lots, during which was also the combination period between
Shenzhen Securities Registration Company Limited and SZSE, the listed companies carried out the business such as equity
distribution, for example, the production odd lots, the odd lots gained by the shareholders should be totally rejected; meanwhile,
those odd lots rejected were calculated concentrated into the special account, which had not distributed to the shareholders. For
perfectly solve the questions of the left over stock odd lots, the odd lots should held by the whole shareholders according to the
instruction and requirements of the CSRC, as well as Shenzhen Branch of SCDC accepted the entrustment of the Company to sale the odd lots and returned the net profits to the Company. The Company calculated the net profits from the selling of the odd lots into the relevant accumulation funds projects of theshareholders’ equities and would disclose in the subsequent periodic report. Shenzhen Branch of SCDC had entrusted Security Agency to concentrated sale the stock odd lots in the third quarter of 2014 and had returned the net profits to the listed companies before 30 Sep. 2014.
The Company had signed the Agreement of the Listed Companies Entrusting Shenzhen Branch of SCDC of the Sales of Odd Lots with the latter in Jul. 2014, of which up to 18 Aug. 2014, the price of the stock odd lots should not lower than93% of the closing
price before the date of the exchange and should sale by the centralized competitive trading method through China Merchants
Securities Co. Ltd.
On 1 Sep. 2014, the Company received the net profits returned from the sales of the odd lots (1,297 shares) by Shenzhen Branch of SCDC, which amounted to HKD 5,550.29, as well as the Company had calculated the profits into the capital reserve projects
according to the relevant requirements.
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. III. Commitments made by the Company or shareholders holding over5% of the Company’s shares in the reporting period or such commitments carried down into the reporting period√Applicable□Inapplicable
|||||||
|-|-|-|-|-|-|
|||||Period of||
||||Time of making|||
|Commitment|Commitment maker|Contents||commitmen|Fulfillment|
||||commitment|||
|||||t||
|Commitments made in a share||||||
|reform||||||
|Commitments made in an||||||
|acquisition report or a report on||||||
|equity changes||||||
|Commitments made in asset||||||
|reorganization||||||
|Commitments made in the first||||||
|public offering or refinancing.||||||
|||Based on the confidence||||
|||on the continuous and||||
|||stable development of||||
|||the Compa ny, it||||
|||committed to increase||||
|||the shareholding if the||||
|||Company’s stock price|||The Company ’s|
|||lower than HKD 2.40||||
||||||stocks resumed|
|||per share after the||||
||||||trading on 31|
|||implementation of the||||
||||||Dec. 2012, but|
|||shares contraction and||||
||||||the Company ’s|
|||trading resumption, and||||
||||||stock price|
|||it would increase no||||
|||more than 2% shares(i.e. 370,780,000 shares)||Within oneyear since|hasn’t met the|
||||||condition for|
|Other commitments made to|FILLMANINVESTMENTSLIMITED|of the total shares issued|28 Dec. 2012|the date of|shareholdingincrease sincethe date of|
|minority shareholders||by the Company within||initial||
|||one year since the dateof initial shareholding||shareholding increase|trading|
||||||resumption,|
|||increase. If the plan on|||FILLMAN|
|||increasing holding 2%||||
||||||Investment|
|||shares of the total shares||||
||||||Limited hasn ’t|
|||is completed, if the||||
||||||implemented the|
|||stock price hasn ’t||||
||||||shareholding|
|||reached the target price,||||
||||||increase plan.|
|||it will perform relevant||||
|||approval procedures,||||
|||and propose to CSRC on||||
|||continuous||||
|||implementation of||||
|||shareholding increase by||||
|||exemption of offering.||||
|Executed in time or not?|Yes|||||
|Detailed reason for failing to|The Company’s stocks resumed trading on 31 Dec. 2012, but the Company ’s stock price hasn’t met|||||
|execute and the plan for the next|the condition for shareholding increase since the date of trading resumption, FILLMAN Investment|||||
|step (If any)|Limited hasn’t implemented the shareholding increase plan.|||||

IV. Predict the 2014 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the beginning of the year to the end of the next reporting period compared with the same period of the last year according to prediction, as well as
explanations on the reasons
□Applicable√Inapplicable
V. Securities investment
□Applicable√Inapplicable
The Company was not involved in any securities investment of the reporting period.
Shareholdings in other listed companies
□Applicable√Inapplicable
The Company did not have any shareholding in any other listed company in the reporting period.
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. VI. Investments in derivatives
√Applicable□Inapplicable
Unit: RMB Ten thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Related-||||||||Proportion of the closing||
||||Type of|Initial|||Opening||Closing|||
||Relati|party||||||Impairment||investment amount in the|Actual gain/loss in reporting|
|Operator|||derivative|investment|Beginning date|Ending date|investment||investment|||
||on|transacti||||||provision||Company’s closing net|period|
||||investment|amount|||amount||amount|||
|||on or not||||||||assets (%)||
|Bank No||No|Forwardexchange|140,508.69|1 Jan. 2014 30|Sep. 2014|95,896.14|74,950.5|6|140.41|-1,018.70|
|Total||||140,508.69|-- --||95,896.14|74,950.5|6|140.41|-1,018.70|
|Capital source for derivative investment||||Self-owned funds||||||||
|Lawsuit (if any) N/A||||||||||||
|Disclosure date of the board||||||||||||
|announcement approving the wealth||||2013/3/12||||||||
|management entrustment (if any)||||||||||||
|Disclosure date of the general meeting||||||||||||
|announcement approving the wealth||||2013/5/18||||||||
|management entrustment (if any)||||||||||||
|||||1. Analysis on risks from holding of derivative products: gains or losses from difference between contracted exchange rate and market exchange rate onvalue date.2. Control measures:(1) Principle: The purpose of the financial derivative operation is to avoid risks. The Company shall not conduct transactional operation for other purposesthan risk avoidance. The Company shall not conduct complex derivative trading above the actual operation needs and shall not speculate in derivativetrading with hedging as an excuse. The overall contractual amount for risk avoidance of the Company shall not exceed the summation of the net riskexposure of the existing assets and liabilities and the net risk exposure of assets and liabilities arising from the operation of the Company in the comingyear.(2) Staff requirements: Personnel taking part in the investment shall all fully understand the risks of derivative investment and strictly execute the businessoperation 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||||||||
|Analysis on risks and control measures||||||||||||
|of derivative products held in the||||||||||||
|reporting period (including but not||||||||||||
|limited to market risk, liquidity risk,||||||||||||
|credit risk, operation risk, law risk, etc.)||||||||||||

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
|||
|-|-|
||decision-making, business operation, risk control, etc. It shall also inquire and compare among various markets and products. Besides, it shall strictlycontrol 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-rankingexecutive authorized by the Board of Directors. And a derivative investment report shall be sent to the Board of Directors annually. Each subsidiary shouldonly summit to the Board of Directors of the subsidiary.(5) Loss limit: The investment loss on a single derivative and all the investment loss shall not exceed 20% 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|(1) Gains and losses affected by completed transaction amount of derivative products was RMB 11.4231 million, and gain from undelivered transactionwas RMB 21.6101 million in the reporting period, of which the rotation profits of the undelivered forward estimates of the investment derivatives was ofRMB 21.1201 million;(2) The former contracted bank provided monthly sheets of estimated exchange rates for the undue contracted forward exchanges on the last trading day ofthe month.(3) The profit and loss from fair value changes of the derivative was confirmed according to the difference between the contracted amount undue by themonth*the estimated exchange rate and the currency amount when bought in.|
|in the reporting period of the invested||
|derivatives. And the analysis on the fair||
|value of the derivatives should include||
|the specific use methods and the relevant||
|assumptions and parameters.||
|Whether significant changes occurred to|There were no significant changes between the Company ’s accounting policy and specific accounting principles of derivatives in the reporting period andthose in the last reporting period.|
|the Company ’s accounting policy and||
|specific accounting principles of||
|derivatives in the reporting period||
|compared to the previous reporting||
|period||
|Special opinion from indepe ndent|The Company has carried out a strict internal assessment for the financial derivative business and has established a corresponding supervision mechani sm.We are of the opinion that the financial derivative business conducted by the Company is fairly necessary in its routine operation and is in compliance withrelevant laws and regulations, with the risks controllable.|
|directors, sponsor or financial consultant||
|on the Company’s derivatives investment||
|and risk control||

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. VII. Researches, visits and interviews received in the reporting period
□Applicable√Inapplicable
The Company did not receive any research, visit or interview in the reporting period.
Report for the Third Quarter of 2014 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 Yuan
||||
|-|-|-|
|Item|30 Sept. 2014|31 Dec. 2013|
|Current Assets:|||
|Monetary funds|876,696,655.92|834,088,959.68|
|Settlement reserves|||
|Intra-group lendings|||
|Financial assets measured at fair value|||
|and of which change s are recorded into||21,120,100.00|
|current gains and losses|||
|Notes receivable|3,427,489.20|2,467,447.00|
|Accounts receivable|303,137,855.33|253,823,475.86|
|Accounts paid in advance|16,852,608.37|4,290,802.70|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract reserves|||
|Interest receivable|10,484,684.49|110,833.33|
|Dividend receivable|||
|Other accounts receivable|30,380,049.25|32,339,652.22|
|Financial assets purchased under|||
|agreements to resell|||
|Inventories|205,521,066.81|209,824,098.90|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|270,000,000.00|50,000,000.00|
|Total current assets|1,716,500,409.37|1,408,065,369.69|
|Non-current assets:|||
|Loans by mandate and advances granted|||
|Available-for-sale financial assets|40,000.00|40,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|||
|Investing property|52,422,194.24|58,732,511.36|
|Fixed assets|169,201,195.22|173,152,964.50|
|Construction in progress|212,639.80|10,889,671.98|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|11,241,081.13|11,803,252.87|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|5,250,903.40|4,355,866.63|
|Deferred income tax assets|16,707,492.47|23,761,647.80|
|Other non-current assets|2,184,777.08||
|Total of non-current assets|257,260,283.34|282,735,915.14|
|Total assets|1,973,760,692.71|1,690,801,284.83|
|Current liabilities:|||

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
||||
|-|-|-|
|Short-term borrowings|295,320,000.00|30,484,500.00|
|Borrowings from Central Bank|||
|Customer bank deposits and due to banks|||
|and other financial institutions|||
|Intra-group borrowings|||
|Financial liabilities measured at fair value|||
|and of which changes are recorded into|490,050.00||
|current gains and losses|||
|Notes payable|23,548,570.11|30,577,887.89|
|Accounts payable|526,381,749.99|648,629,156.16|
|Accounts received in advance|15,855,193.18|10,431,654.59|
|Financial assets sold for repurchase|||
|Handling charges and commissions|||
|payable|||
|Employee ’s compensation payable|44,608,884.21|40,748,328.96|
|Tax payable|-2,980,295.71|-17,127,309.97|
|Interest payable|3,270,214.70|108,661.00|
|Dividend payable|||
|Other accounts payable|181,330,112.45|69,376,770.31|
|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 1 year|||
|Other current liabilities|||
|Total current liabilities|1,087,824,478.93|813,229,648.94|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Long-term payables|||
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|217,333.34|3,258,742.65|
|Other non-current liabilities||222,600.00|
|Total non-current liabilities|217,333.34|3,481,342.65|
|Total liabilities|1,088,041,812.27|816,710,991.59|
|Owners’ equity (or shareholders’ equity)|||
|Paid-up capital (or share capital)|185,391,680.00|185,391,680.00|
|Capital reserves|278,458,862.55|278,454,447.07|
|Less: Treasury stock|||
|Specific reserves|||
|Other comprehensive incomes|-1,101,939.11|-1,382,202.82|
|Surplus reserves|11,495,983.58|11,495,983.58|
|Provisions for general risks|||
|Retained profits|59,542,501.40|46,733,303.43|
|Foreign exchange difference|||
|Total equity attributable to owners of the|||
||533,787,088.42|520,693,211.26|
|Company|||
|Minority interests|351,931,792.02|353,397,081.98|
|Total owners’ (or shareholders’) equity|885,718,880.44|874,090,293.24|
|Total liabilities and owners ’ (or|||
||1,973,760,692.71|1,690,801,284.83|
|shareholders’) equity|||

Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. 2. Balance sheet of the Company
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
||||
|-|-|-|
|Item|30 Sept. 2014|31 Dec. 2013|
|Current Assets:|||
|Monetary funds|10,020,083.34|11,811,615.43|
|Financial assets m easured at fair|||
|value and of which changes are|||
|recorded into current gains and losses|||
|Notes receivable|3,427,489.20|822,974.00|
|Accounts receivable|49,020,729.10|39,868,837.59|
|Accounts paid in advance|256,510.53|418,695.09|
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|2,245,875.42|1,195,292.22|
|Inventories|6,687,135.57|4,346,896.79|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|||
|Total current assets|71,657,823.16|58,464,311.12|
|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 investment|985,814,030.83|985,814,030.83|
|Investing property|44,886,209.08|48,731,726.97|
|Fixed assets|600,503.91|646,980.59|
|Construction in progress||92,700.00|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets||313,667.95|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|850,089.02|1,126,312.61|
|Deferred income tax assets|1,485,791.88|4,228,126.98|
|Other non-current assets|165,900.00||
|Total of non-current assets|1,033,842,524.72|1,040,993,545.93|
|Total assets|1,105,500,347.88|1,099,457,857.05|
|Current liabilities:|||
|Short-term borrowings|||

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
||||
|-|-|-|
|Financial liabilities measured at fair|||
|value and of which changes are|||
|recorded into current gains and losses|||
|Notes payable|||
|Accounts payable|61,660,155.43|87,479,703.39|
|Accounts received in advance|6,773,829.83|988,253.99|
|Employee ’s compensation payable|2,638,522.62|1,175,146.87|
|Tax payable|520,266.39|956,841.14|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|498,219,556.47|491,868,854.25|
|Liabilities held for sale|||
|Non- current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|569,812,330.74|582,468,799.64|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Long-term payables|||
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|0.00|0.00|
|Total liabilities|569,812,330.74|582,468,799.64|
|Owners’ equity (or shareholders ’|||
|equity)|||
|Paid-up capital (or share capital)|185,391,680.00|185,391,680.00|
|Capital reserves|271,489,596.88|271,485,181.40|
|Less: Treasury stock|||
|Specific reserves|||
|Surplus reserves|11,495,983.58|11,495,983.58|
|Provisions for general risks|||
|Retained profits|67,310,756.68|48,616,212.43|
|Foreign exchange difference|||
|Total owners’ (or shareholders’) equity|535,688,017.14|516,989,057.41|
|Total liabilities and owners ’ (or|||
||1,105,500,347.88|1,099,457,857.05|
|shareholders’) equity|||

Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. 3. Consolidated income statement for the reporting period
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total operating revenues|||
||544,321,965.08|583,904,520.84|
|Including: Sales income|||
||544,321,965.08|583,904,520.84|
|Interest income|||
|Premium income|||
|Handling charge and|||
|commission income|||
|II. Total operating cost|||
||525,887,541.49|567,928,499.28|
|Including: Cost of sales|||
||460,219,102.58|500,908,030.67|
|Interest expenses|||
|Handling charge and|||
|commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|||
||3,319,615.53|1,488,948.41|
|Selling and distribution expenses|||
||19,897,087.88|19,879,125.53|
|Administrative expenses|||
||42,240,352.84|37,111,897.89|
|Financial expenses|||
||-2,908,650.92|658,864.99|
|Asset impairment loss|||
||3,120,033.58|7,881,631.79|
|Add: Gain/(loss) from change in fair|||
||5,158,021.00|8,279,752.55|
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
||6,445,948.48|4,581,233.73|
|means loss)|||
|Including: share of profits in|||
|associates and joint ventures|||
|Foreign exchange gains ( “-”|||
|means loss)|||
|III. Business profit (“-” means loss)|||
||30,038,393.07|28,837,007.84|

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
||||
|-|-|-|
|Add: non-operating income|||
||2,737,189.92|2,423,582.71|
|Less: non-operating expense|||
||128,227.96|274,598.78|
|Including: loss from non-current|||
||2.63|-1,883.61|
|asset disposal|||
|IV. Total profit (“-” means loss)|||
||32,647,355.03|30,985,991.77|
|Less: Income tax expense|||
||1,711,949.34|6,259,756.81|
|V. Net profit (“-” means loss)|||
||30,935,405.69|24,726,234.96|
|Including: Net profit achieved by|||
|combined parties before the|||
|combinations|||
|Attributable to owners of the|||
||23,906,043.41|19,592,714.88|
|Company|||
|Minority shareholders’ income|||
||7,029,362.28|5,133,520.08|
|VI. Earnings per share|||
||--|--|
|(I) Basic earnings per share|||
||0.13|0.11|
|(II) Diluted earnings per share|||
||0.13|0.11|
|VII. Other comprehensive incomes|||
||4,133.24|820,625.65|
|Including: Other comprehensive|||
|incomes items that cannot be|||
|reclassified as gains and losses in the|||
|subsequent accounting periods|||
|Other comprehensive incomes items|||
|that will be reclassified as gains and|||
||4,133.24|820,625.65|
|losses in the subsequent accounting|||
|periods as relevant requirements are met|||
|VIII. Total comprehensive incomes|||
||30,939,538.93|25,546,860.61|
|Attributable to own ers of the|||
||23,910,176.65|20,413,340.53|
|Company|||
|Attributable to minority shareholders|||
||7,029,362.28|5,133,520.08|

 Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. 4. Income statement of the Company for the reporting period
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total sales|58,442,043.78|40,524,927.07|
|Less: cost of sales|48,755,369.75|33,099,529.79|
|Business taxes and surcharges|485,845.98|312,085.42|
|Distribution expenses|2,041,280.17|943,995.42|
|Administrative expenses|2,695,990.94|1,974,957.97|
|Financial costs|-35,304.63|-39,655.11|
|Impairment loss|899,716.50|295,432.27|
|Add: gain/(loss) from change in fair|||
|value (“-” means loss)|||
|Gain/(loss) from investment ( “-”|||
|||35,736,850.78|
|means loss)|||
|Including: income form investment|||
|on associates and joint ventures|||
|II. Business profit (“-” means loss)|3,599,145.07|39,675,432.09|
|Add: non-business income|107,652.70|185,855.03|
|Less: non-business expense||-267.92|
|Including: loss from non- current|||
|asset disposal|||
|III. Total profit (“-” means loss)|3,706,797.77|39,861,555.04|
|Less: income tax expense|1,346,073.08||
|IV. Net profit (“-” means loss)|2,360,724.69|39,861,555.04|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|0.01|0.22|
|(II) Diluted earnings per share|0.01|0.22|
|VI. Other comprehensive income|||
|Including: Other comprehensive|||
|incomes items that cannot be|||
|reclassified as gains and losses in the|||
|subsequent accounting periods|||
|Other comprehensive incomes items|||
|that will be reclassified as gains and|||
|losses in the subsequent accounting|||
|periods as relevant requirements are met|||
|VII. Total comprehensive income|2,360,724.69|39,861,555.04|

Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. 5. Consolidated income statement for Jan.-Sept. 2014
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total operating revenues|||
||1,434,538,264.59|1,461,748,728.64|
|Including: Sales income|||
||1,434,538,264.59|1,461,748,728.64|
|Interest income|||
|Premium income|||
|Handling charge and commission|||
|income|||
|II. Total operating cost|||
||1,389,310,291.72|1,448,063,018.66|
|Including: Cost of sales|||
||1,222,193,517.04|1,263,570,802.30|
|Interest expenses|||
|Handling charge and commission|||
|expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|||
||8,249,924.72|3,167,114.06|
|Selling and distribution expenses|||
||54,280,542.64|54,172,998.07|
|Administrative expenses|||
||115,152,940.25|111,961,724.25|
|Financial expenses|||
||-14,125,625.27|4,528,411.70|
|Asset impairment loss|||
||3,558,992.34|10,661,968.28|
|Add: Gain/(loss) from change in fair|||
||-21,610,150.00|15,628,971.85|
|value (“-” means loss)|||
|Gain/(loss) from investment ( “-”|||
||20,446,066.98|8,157,579.03|
|means loss)|||
|Including: share of profits in|||
|associates and joint ventures|||
|Foreign exchange gains (“-” means|||
|loss)|||
|III. Business profit (“-” means loss)|||
||44,063,889.85|37,472,260.86|

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
||||
|-|-|-|
|Add: non-operating income|||
||11,558,038.21|7,133,255.72|
|Less: non-operating expense|||
||870,000.91|1,101,033.90|
|Including: loss from non- current|||
||2,629.81|155,231.64|
|asset disposal|||
|IV. Total profit (“-” means loss)|||
||54,751,927.15|43,504,482.68|
|Less: Income tax expense|||
||4,669,389.24|7,399,199.63|
|V. Net profit (“-” means loss)|||
||50,082,537.91|36,105,283.05|
|Including: Net profit achieved by|||
|combined parties before the|||
|combinations|||
|Attributable to owners of the|||
||38,764,033.17|30,018,395.73|
|Company|||
|Minority shareholders’ income|||
||11,318,504.74|6,086,887.32|
|VI. Earnings per share|||
||--|--|
|(I) Basic earnings per share|||
||0.21|0.16|
|(II) Diluted earnings per share|||
||0.21|0.16|
|VII. Other comprehensive incomes|||
||280,263.71|3,456,446.14|
|Including: Other comprehensive|||
|incomes items that cannot be|||
|reclassified as gains and losses in the|||
|subsequent accounting periods|||
|Other comprehensive incomes items|||
|that will be reclassified as gains and|||
|losses in the subsequent accounting|280,263.71|3,456,446.14|
|periods as relevant requirements are|||
|met|||
|VIII. Total comprehensive incomes|||
||50,362,801.62|39,561,729.19|
|Attributable to owners of the|||
||39,044,296.88|33,474,841.87|
|Company|||
|Attributable to minority shareholders|||
||11,318,504.74|6,086,887.32|

 Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. 6. Income statement of the Company for Jan.-Sept. 2014
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total sales|101,050,036.42|75,971,039.26|
|Less: cost of sales|77,835,613.62|58,279,580.95|
|Business taxes and surcharges|1,152,004.18|762,011.18|
|Distribution expenses|5,040,950.06|3,240,960.78|
|Administrative expenses|8,274,173.54|3,842,173.15|
|Financial costs|236,803.63|-267,849.13|
|Impairment loss|-598,460.81|405,268.45|
|Add: gain/(loss) from change in fair|||
|value (“-” means loss)|||
|Gain/(loss) from investment ( “-”|||
||38,189,978.21|35,744,383.78|
|means loss)|||
|Including: income form investment|||
|on associates and joint ventures|||
|II. Business profit (“-” means loss)|47,298,930.41|45,453,277.66|
|Add: non-business income|128,575.86|1,007,562.97|
|Less: non-business expense|35,791.72||
|Including: loss from non- current|||
|asset disposal|||
|III. Total profit (“-” means loss)|47,391,714.55|46,460,840.63|
|Less: income tax expense|2,742,335.10||
|IV. Net profit (“-” means loss)|44,649,379.45|46,460,840.63|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|0.24|0.25|
|(II) Diluted earnings per share|0.24|0.25|
|VI. Other comprehensive income|||
|Including: Other comprehensive|||
|incomes items that cannot be|||
|reclassified as gains and losses in the|||
|subsequent accounting periods|||
|Other comprehensive incomes items|||
|that will be reclassified as gains and|||
|losses in the subsequent accounting|||
|periods as relevant requirements are|||
|met|||
|VII. Total comprehensive income|44,649,379.45|46,460,840.63|

 Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. 7. Consolidated cash flow statement for Jan.-Sept. 2014
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||1,360,412,327.85|1,380,758,155.33|
|commodities and rendering of service|||
|Net increase of deposits from|||
|customers and dues from banks|||
|Net increase of loans from the central|||
|bank|||
|Net increase of funds borrowed from|||
|other financial institutions|||
|Cash received from premium of|||
|original insurance contracts|||
|Net cash received from reinsuran ce|||
|business|||
|Net increase of deposits of policy|||
|holders and investment fund|||
|Net increase of disposal of tradable|||
|financial assets|||
|Cash received from interest, handling|||
|charges and commissions|||
|Net increase of intra- group|||
|borrowings|||
|Net increase of funds in repurchase|||
|business|||
|Tax refunds received|154,669,374.04|189,790,665.78|
|Other cash received relating to|||
||73,864,346.39|75,085,751.06|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,588,946,048.28|1,645,634,572.17|
|activities|||
|Cash paid for goods and services|1,257,184,026.76|1,242,889,727.19|
|Net increase of customer lendings|||
|and advances|||
|Net increase of funds deposited in the|||
|central bank and amount due from|||
|banks|||
|Cash for paying claims of the o riginal|||
|insurance contracts|||
|Cash for paying interest, handling|||
|charges and commissions|||
|Cash for paying policy dividends|||
|Cash paid to and for employees|184,072,607.32|165,587,165.60|
|Various taxes paid|22,474,160.98|23,474,710.14|
|Other cash payment relating to|||
||184,760,754.65|183,055,973.99|
|operating activities|||
|Subtotal of cash outflows from|||
||1,648,491,549.71|1,615,007,576.92|
|operating activities|||
|Net cash flows from operating activities|-59,545,501.43|30,626,995.25|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
||231,422,984.72|78,200,523.88|
|investments|||
|Cash received from return on|8,692,082.35|595,809.26|

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
||||
|-|-|-|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|3,330,778.97|7,562,195.16|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from investing|||
||243,445,846.04|86,358,528.30|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long- term|33,255,449.23|38,210,230.16|
|assets|||
|Cash paid for investment|440,000,000.00|240,000,000.00|
|Net increase of pledged loans|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
||611,404,876.95||
|investing activities|||
|Subtotal of cash outflows from|||
||1,084,660,326.18|278,210,230.16|
|investing activities|||
|Net cash flows from investing activities|-841,214,480.14|-191,851,701.86|
|III. Cash F lows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|Cash received from borrowings|672,464,728.00|523,133,116.00|
|Cash received from i ssuance of|||
|bonds|||
|Other cash received relating to|||
||143,957,350.00|145,163,058.59|
|financing activities|||
|Subtotal of cash inflows from financing|||
||816,422,078.00|668,296,174.59|
|activities|||
|Repayment of borrowings|410,050,948.00|313,945,640.00|
|Cash paid for interest expenses and|||
||43,214,926.25|29,460,324.16|
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
||12,877,215.94|13,307,306.29|
|by subsidiaries to minority shareholders|||
|Other cash payments relating to|||
||33,837,950.00||
|financing activities|||
|Sub-total of cash outflows from|||
||487,103,824.25|343,405,964.16|
|financing activities|||
|Net cash flows from financing activities|329,318,253.75|324,890,210.43|
|IV. Effect of foreign exchange rate|||
||2,644,547.11|-13,005,222.92|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-568,797,180.71|150,660,280.90|
|equivalents|||
|Add: Opening balance of cash and|||
||834,088,959.68|759,361,575.52|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||265,291,778.97|910,021,856.42|
|equivalents|||

Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. 8. Cash flow statement of the Company for Jan.-Sept. 2014
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||94,631,963.05|47,864,119.34|
|commodities and rendering of service|||
|Tax refunds received|||
|Other cash received relating to|||
||417,492,388.45|38,688,048.99|
|operating activities|||
|Subtotal of cash inflows from operating|||
||512,124,351.50|86,552,168.33|
|activities|||
|Cash paid for goods and services|115,910,450.05|9,246,183.76|
|Cash paid to and for employees|5,402,684.19|3,954,781.98|
|Various taxes paid|5,504,014.56|4,650,129.67|
|Other cash payment relating to|||
||399,623,261.39|101,312,428.51|
|operating activities|||
|Subtotal of cash outflows from|||
||526,440,410.19|119,163,523.92|
|operating activities|||
|Net cash flows from operating activities|-14,316,058.69|-32,611,355.59|
|II. Cash flows from investing activities:|||
|Cash received from retraction of|||
|investments|||
|Cash received from return on|||
||38,189,978.21|35,744,383.78|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|85,700.00|797,450.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from investing|||
||38,275,678.21|36,541,833.78|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long- term|400,135.90|48,810.76|
|assets|||

Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd.
||||
|-|-|-|
|Cash paid for investment|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||400,135.90|48,810.76|
|investing activities|||
|Net cash flows from investing activities|||
||37,875,542.31|36,493,023.02|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Cash received from borrowings|||
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
|activities|||
|Repayment of borrowings|||
|Cash paid for interest expenses and|||
||25,337,391.98|15,758,292.80|
|distribution of dividends or profit|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
||25,337,391.98|15,758,292.80|
|financing activities|||
|Net cash flows from financing activities|-25,337,391.98|-15,758,292.80|
|IV. Effect of foreign exchange rate|||
||-13,623.73|-37,459.99|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-1,791,532.09|-11,914,085.36|
|equivalents|||
|Add: Opening balance of cash and|||
||11,811,615.43|17,652,594.45|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||10,020,083.34|5,738,509.09|
|equivalents|||

Legal representative: Pan Zhirong Chief of the accounting work: Wu Yanru Chief of the accounting organ: Wu Yanru
Report for the Third Quarter of 2014 of Tsann Kuen (China) Enterprise Co., Ltd. II. Audit report
Is this report audited?
□ Yes√ No
This report is not audited.