Shandong Zhonglu Oceanic Fisheries Co., Ltd.
SEMI-ANNUAL REPORT 2014
August 2014
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shandong Zhonglu Oceanic Fisheries Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
All directors are attended the Board Meeting for report deliberation.
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either.
Li Wenyi, principal of the Company, Zhang Weiping, person in charger of accounting works and Lei Lixin, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of Semi-Annual Report 2014 is authentic, accurate and complete.
Content
SEMI-ANNUAL REPORT 2014 ................................................................................ 1 Section I. Important Notice, Contents and Paraphrase .......................................... 2 Section II Company profile ........................................................................................ 5 Section III. Accounting data and summary of financial indexes ............................ 7 Section IV. Report of the Board of Directors ............................................................ 9 Section V. Iimportant Events .................................................................................... 16 Section VI. Changes in Shares and Particulars about Shareholders ................... 21 Section VII. Preferred Stock ..................................................................................... 25 Section VIII. Directors, Supervisors and Senior Executives ................................. 26 Section IX. Financial Report .................................................................................... 27 Section X. Documents available for reference ...................................................... 118
Paraphrase
||||
|-|-|-|
|Items|Refers to|Definition|
|“Zhonglu Company”, “The Company” or|||
||Refers to|Shandong Zhonglu Oceanic Fisheries Company Limited|
|“Company”|||
|" State-owned Assets Investment " or "|||
||Refers to|Shandong State-owned Assets Investment Holding Company Limited|
|Shandong State-owned Assets Investment "|||
|"“Luxin Group”|Refers to|Luxin Investment Holding Company Limited|
|||State-owned Assets Supervision and Administration Commission of|
|“SASAP”|Refers to||
|||Shandong Provincial Government|
|“CSRC”|Refers to|China Securities Regulatory Commission|
|“Shandong SRB”|Refers to|CSRC, Shandong Securities Regulatory Bureau|
|“The report”|Refers to|Semi-Annual Report for 2014 compiled by the Company|

Section II Company profile
I. Company Profile
|||||
|-|-|-|-|
|Short form for share|Zhonglu B|Code for share|200992|
|Listing stock exchange|Shenzhen Stock Exchange|||
|Chinese name of the Company|山东省中鲁远洋渔业股份有限公司|||
|Abbr. of Chinese name of the||||
||中鲁远洋|||
|Company(if applicable)||||
|English name of the||||
||Shandong Zhonglu Oceanic Fisheries Company Limited|||
|Company(if applicable)||||
|Abbr. of English name of the||||
||zlyy|||
|Company(if applicable)||||
|Legal Representative|Li Wenyi|||

II. Contact person and ways
||||
|-|-|-|
||Secretary of the Board|Rep. of securities affairs|
|Name|Zhou Feng|Li Ying; Li Feng|
||No.43 Heping Rd, Jinan City, Shangdong|No.43 Heping Rd, Jinan City, Shangdong|
|Contact adds.|||
||Province|Province|
|Tel.|0531-86553278|0531-86553276|
|Fax.|0531-86982906|0531-86982906|
|E-mail|zlzqb@163.com|zlzqb@163.com|

III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not
□ Applicable√ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period, found more details in Annual Report 2013.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable√ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation place for semi-annual report have no change in reporting period, found more details in Annual Report 2013.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable√ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and organization code have no change in reporting period, found more details in Annual Report 2013.
Section III. Accounting data and summary of financial indexes I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
|||||
|-|-|-|-|
||||Increase/decrease in this|
||Current period|Same period of last year||
||||report y-o-y|
|Operating revenue (RMB)|260,016,584.61|264,728,360.22|-1.78%|
|Net profit attributable to shareholders of|1,306,809.14|1,331,772.94||
||||-1.87%|
|the listed company(RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting|1,127,784.64|194,138.55|480.92%|
|non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating|1,721,929.37|-20,915,097.21||
||||108.23%|
|activities(RMB)||||
|Basic earnings per share (RMB/Share)|0.005|0.005|0.00%|
|Diluted earnings per share (RMB/Share)|0.005|0.005|0.00%|
|Weighted average ROE (%)|0.24%|0.27%|-0.03%|
||||Increase/decrease in this|
||End of current period|End of last period|report-end over that of last|
||||period-end|
|Total assets (RMB)|715,656,281.69|737,318,072.70|-2.94%|
|Net assets attributable to shareholder of|542,151,346.04|540,850,737.98||
||||0.24%|
|listed company(RMB)||||

II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period
II. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the|-271,750.24||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|426,198.74||
|including the subsidy enjoyed in quota or ration according to|||
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Other non-operating income and expenditure except for the|25,576.00||
|aforementioned items|||
|Foreign donations|-1,000.00||
|Total|179,024.50|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
Section IV. Report of the Board of Directors
I. Introduction
In reporting period, the Company strictly accorded with 2014 working principle, focused on thoughts of state-owned companies transformation. We closely followed the trace of macro economy policies. Based on better capital operation and production, we insisted center of quality and interest improvement. Faced with domestic and international economy and various difficulties, the Company coordinated from upper and lower levels. Finally we accomplished the goal after hard work. In this period, we realized operating income of RMB 260,016,600, down by1.78% compared with the same period of last year; operating cost of RMB 239,126,000, up by8.82% compared with the same period of last year; net profit attributable to parent company of RMB 1,306,800, down by1.87% compared with the same period of last year. The fishing capacity reached 6,872.76 tons.
II. Main business analysis
Y-o-y changes of main financial data
In RMB
||||||
|-|-|-|-|-|
||Current period|Same period of last year|Y-o-y increase/decrease|Reasons for changes|
|Operation revenue|260,016,584.61|264,728,360.22|-1.78%||
|Operation cost|239,126,034.18|219,741,407.76|8.82%||
|Sales expenses|2,138,614.48|2,162,304.33|-1.10%||
|Administrative expenses|16,577,378.13|13,721,691.25|20.81%||
||1,091,710.54|244,394.62||At same period of last|
|||||year, more interest|
|||||income from taking back|
|||||the equity of Qingdao|
|Financial cost|||346.70%||
|||||Double-Whale that|
|||||transferred, thus financal|
|||||cost in last period|
|||||declined greatly|
||144,258.54|28,100.00||Enterprise income tax for|
|Income tax expense|||413.38%|year of 2013 was paid by|
|||||Haiyan subsidiary|
||1,721,929.37|-20,915,097.21||The fish stock last period|
|Net cash flow arising||||has sold in the Period and|
||||108.23%||
|from operation activities||||with major amount|
|||||received|
|Net cash flow arising|-11,624,249.91|9,392,667.50|-223.76%|Insurance indemnity of|

||||||
|-|-|-|-|-|
|from investment||||Taifu 102 received in the|
|activities||||same period of last year|
||-1,873,220.21|32,716,152.93||The repayment increased|
|||||in the Period, and there is|
|Net cash flow arising|||||
||||-105.73%|no investment absorbed|
|from financing activities|||||
|||||compare with same|
|||||period of last year|
|Net increase of cash and|-11,601,442.24|20,966,388.76||Same to the above 3|
||||-155.33%||
|cash equivalent||||items|

Major changes on profit composition or profit resources in reporting period
□ Applicable√ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize statement
□ Applicable√ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize statement
Review on the previous business plan and its progress during reporting period
The business plan disclosed last period have completed, no particular about project progress in the Period
III. Constitution of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase or|Increase or|Increase or|
|||||decrease of|decrease of|decrease of gross|
||Operating||||||
|||Operating cost|Gross profit ratio|operating revenue|operating cost|profit ratio over|
||revenue||||||
|||||over same period|over same period|same period of|
|||||of last year|of last year|last year|
|According to industries|||||||
|Pelagic fishery|||||||
||122,918,154.00|127,290,438.93|-3.56%|66.06%|148.84%|-34.45%|
|and reprocess|||||||
|Management and|||||||
|rent of|||||||
|refrigerated|39,292,689.17|29,690,426.42|24.44%|-1.13%|-3.08%|1.52%|
|transportation|||||||
|ships|||||||
|Aquatic product|||||||
|process, freeze,|93,331,638.49|81,231,958.09|12.96%|-36.61%|-40.78%|6.13%|
|etc|||||||
|Total|255,542,481.66|238,212,823.44|6.78%|-2.09%|8.79%|6.78%|
|According to products|||||||
|Tuna|122,918,154.00|127,290,438.93|-3.56%|66.06%|148.84%|-34.45%|

||||||||
|-|-|-|-|-|-|-|
|Ship Rental|39,292,689.17|29,690,426.42|24.44%|-1.13%|-3.08%|1.52%|
|Aquatic product|||||||
|process and cold|93,331,638.49|81,231,958.09|12.96%|-36.61%|-40.78%|6.13%|
|storage|||||||
|Total|255,542,481.66|238,212,823.44|6.78%|-2.09%|8.79%|6.78%|
|According to region|||||||
|Mainland China|50,764,857.38|51,956,256.59|-2.35%|-27.61%|-15.14%|-15.04%|
|Taiwan China|63,946,569.19|52,764,811.56|17.49%|-12.81%|9.58%|-16.86%|
|H.K. China||||-100.00%|-100.00%|-6.73%|
|Japan|73,068,011.07|69,203,366.99|5.29%|-3.28%|-1.79%|-1.44%|
|Singapore|14,845,442.29|14,171,390.55|4.54%|93.30%|97.84%|-2.19%|
|Ghana|6,698,425.81|6,560,238.17|2.06%|13.10%|19.34%|-5.12%|
|South Korea|31,322,760.73|29,666,066.92|5.29%|86.56%|89.45%|-1.44%|
|Other|14,896,415.19|13,890,692.66|6.75%|||6.75%|
|Total|255,542,481.66|238,212,823.44|6.78%|-2.09%|8.79%|6.78%|

 IV. Core competitive-ness analysis
As a comprehensive fishing corporation, main business covers various sections of this industry. And all the sections have close connection with each other. This kind of overall coordination guaranteed reform of operation and strategy of enhancing and extending industry chain. The capacity volume of the deep-sea fishing was stable, increased against last year. Whatever in terms of number of vessels or the total tonnage or profitability, existing international refrigerated shipping fleet tops in domestic. In 2014, the production was stable and ships renew program ran in smooth progress. Subsidiary Yantai Food has the largest ultra-low temperature cold storage and fresh tuna processing plants, with HACCP and EU registration (3700/02832), in which throughput capacity of ultra-low temperature tuna accounts for more than half of the country. In the first half of 2014, "China Trade Center for Tuna and China Deep Ocean Tuna base developed very well. And its new electronic trading platform for tuna normally operated, which also enhanced advantage of tuna extending string fishing and processing in trade. Meanwhile, the Company put efforts to improve the level of equipment fleets to accelerate replacement of old ships, and actively explored new opportunities for investment and cooperation, in order to obtain a new room for growth.
The above factors laid intensified strategic support for growth of the Company. We will make use of these strategic resources, innovate, speed up strategic transition, largely promote extending the industry, and further improve competitiveness and influence of the Company in the both domestic and global market.
V. Investment analysis
1. Equity investment outside
(1) Investment outside
□ Applicable√ Not applicable
The Company has no investment outside in the Period
(2) Holding equity of financial enterprise
□ Applicable√ Not applicable
The Company has no equity of financial enterprise held in the Period
(3) Securities investment
□ Applicable√ Not applicable
The Company has no securities investment in the Period
2. Trust financing, investment of derivatives and entrustment loan
(1) Trust financing
□ Applicable√ Not applicable
The Company has no trust financing in the Period
(2) Investment of derivatives
□ Applicable√ Not applicable
The Company has no derivatives investment in the Period
(3) Entrustment loan
□ Applicable√ Not applicable
The Company has no entrustment loan in the Period
3. Application of raised proceeds
(1)Overall application of raised proceeds
□ Applicable√ Not applicable
(2) Situation of committed project of raised proceeds
□ Applicable√ Not applicable
(3)The changed project of raised proceeds
□ Applicable√ Not applicable
The Company has no project of raised proceeds changed in the Period
(4) Project of raised proceeds
||||
|-|-|-|
|Project of raised proceeds and summary|Disclosure date|Disclosure index|

4. Main subsidiaries and joint-stock companies analysis
√ Applicable□ Not applicable
Main subsidiaries and joint-stock companies
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Main|||||||
|||Industry||Registered|||Operation|Operation||
|Name|Type||products or||Total assets|Net assets|||Net profit|
|||involved||capital|||revenue|profit||
||||service|||||||
||||Internationa|||||||
||||l ocean|||||||
|Shandong||||||||||
|||Cold|shipping,|||||||
|Zhonglu||||||||||
|||storage,|accept for|22,505,600.|38,601,657.||14,985,780.|493,071.5||
|Fishery|Subsidiary|||||919,696.31|||535,082.11|
|||transportati|carriage of|00|68||81|0||
|Shipping||||||||||
|||on|frozen|||||||
|Co., Ltd.||||||||||
||||aquatic|||||||
||||products|||||||
||||Self-suppor|||||||
|HabitatInter|||ting|||||||
|||Refrigerate||12,476,146.|144,311,25|140,727,49|24,306,908.|5,862,022||
|nationalCor|Subsidiary||business of||||||5,862,022.22|
|||d transport||00|4.10|5.01|36|.22||
|poration|||refrigerated|||||||
||||transport|||||||
||||Freeze, cold|||||||
||||storage,|||||||
||||process and|||||||
|Shandong|||sales of|||||||
|Zhonglu|||aquatic|||||||
|Oceanic||Food|products,|75,593,300.|186,997,28|116,881,75|172,478,46|5,971,924||
||Subsidiary||||||||6,101,295.51|
|(Yantai)||processing|animal|00|4.07|2.40|5.75|.22||
|Foods Co.,|||products|||||||
|Ltd.|||and fruits|||||||
||||and|||||||
||||vegetables|||||||
||||etc.|||||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Shandong||||||||||
||||Offshore|||||||
|Zhonglu||||||||||
|||Ocean|fishing,|54,000,000.|54,603,402.|52,378,635.|8,620,692.0|-1,062,85||
|Haiyan|Subsidiary||||||||-1,207,117.06|
|||fishery|ocean-goin|00|19|25|0|8.52||
|Oceanic||||||||||
||||g fishing|||||||
|Co., Ltd.||||||||||

5. Major project invested by non-raised funds
□ Applicable√ Not applicable
The Company had no major project invested by non-raised funds in Period.
VI. Prediction of business performance from January– September 2014
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from the CPA of thisyear’s
□ Applicable√ Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of lastyear’s
□ Applicable√ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital reserve in particular
□Applicable √Not applicable
Previousyear’s profit distribution plan was no profit distribution and shares converted from capital reserve either
X. Profit distribution and capitalization of capital reserves in the Period
□ Applicable√ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for the semi-annual year
XI. In the report period, reception of research, communication and interview
√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
|Time|Place|Way|Type|Reception|Contents discussed and|

|||||||
|-|-|-|-|-|-|
||||||material provided|
||||||Operation status of the|
|2014-01-01 to||Telephone||Some individual||
||Jinan||Individuals||Company and with no|
|06-30||communication||investors||
||||||materials provided|

Section V. Iimportant Events
I. Corporate governance
By strictly followed requirement of relevant laws and regulations as well as CSRC of “Company Law”, “Securities Laws” and “Rules of Corporate Governance for Listed Company” etc., the Company constantly perfected its corporate governance structure, established and improved the internal control system, continue to enhance the level of corporate governance.The Company considers that: in reporting period, actual corporate governance of the Company shows no difference with the Company Law and requirement of relevant regulations from CSRC.
II. Significant lawsuits and arbitrations of the Company
□Applicable√Not applicable
The Company has no significant lawsuits and arbitrations in reporting period
III. Question from media
□ Applicable√ Not applicable
No universal questioned by media in reporting period
IV. Bankruptcy reorganization
□ Applicable√ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.
V. Transaction in assets
1. Assets acquisition
□ Applicable√ Not applicable
The Company did not purchased assets in the Period
2. Sales of assets
□ Applicable√ Not applicable
The Company did not sell assets in the Period
3. Business combination
□ Applicable√ Not applicable
The Company has no business combined in the Period
VI. Implementation of thecompany’s equity incentive and the effects
□ Applicable√ Not applicable
No equity incentive in reporting period
VII. Significant related transaction
1. Related transaction routine operations concerned
□ Applicable√ Not applicable
The Company has no related transaction with routine operations concerned occurred in the Period
2. Related transaction incurred by purchase or sales of assets
□ Applicable√ Not applicable
No related transaction incurred by purchase or sales of assets in Period
3. Related transaction from jointly investment outside
□ Applicable√ Not applicable
No related transaction from jointly investment outside occurred in Period
4. Credits and liability of related party
□ Applicable√ Not applicable
The Company had no credits or liability of related party in Period.
5. Other significant related transactions
□ Applicable√ Not applicable
The Company had no other significant related transactions in the reporting period
VIII. Non-business capital occupying by controlling shareholders and its related parties□ Applicable√ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
IX. Major contract and implantation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable√ Not applicable
The Company had no trusteeship in the reporting period.
(2) Contract
□ Applicable√ Not applicable
The Company had no contract in the reporting period.
(3) Leasing
□ Applicable√ Not applicable
The Company had no leasing in the reporting period.
2. Guarantee
√ Applicable□ Not applicable
In ten thousand Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)|||||||||
||Related||Actual date of||||||
||||||||Complete|Guarante|
||Announcem||happening||||||
|Name of the||Guarantee||Actual|Guarantee|Guarantee|implemen|e for|
||ent||(Date of||||||
|Company guaranteed||limit||guarantee limit|type|term|tation or|related|
||disclosure||signing||||||
||||||||not|party|
||date||agreement)||||||
|Guarantee of the Company for the subsidiaries|||||||||
||Related||Actual date of||||||
||||||||Complete|Guarante|
||Announcem||happening||||||
|Name of the||Guarantee||Actual|Guarantee|Guarantee|implemen|e for|
||ent||(Date of||||||
|Company guaranteed||limit||guarantee limit|type|term|tation or|related|
||disclosure||signing||||||
||||||||not|party|
||date||agreement)||||||
|Shandong Zhong Lu|||||||||
||||||Joint liability||||
|Oceanic(Yantai)|2012-04-26|4,000|2012-04-26|0||2 years|Yes|Yes|
||||||guaranty||||
|Foods Co., Ltd|||||||||
|||||Total amount of actual|||||
|Total amount of approving|||||||||
|||||occurred guarantee for|||||
|guarantee for subsidiaries in||4,000||||0|||
|||||subsidiaries in report period|||||
|report period (B1)|||||||||
|||||(B2)|||||
|||||Total balance of actual|||||
|Total amount of approved|||||||||
|||||guarantee for subsidiaries at|||||
|guarantee for subsidiaries at the||4,000||||0|||
|||||the end of reporting period|||||
|end of reporting period (B3)|||||||||
|||||(B4)|||||
|Total amount of guarantee of the Company( total two abovementioned guarantee)|||||||||
|Total amount of approving||||Total amount of actual|||||
|||4,000||||0|||
|guarantee in report period||||occurred guarantee in report|||||
|(A1+B1)||||period (A2+B2)|||||
|Total amount of approved||||Total balance of actual|||||
|||4,000||||0|||
|guarantee at the end of report||||guarantee at the end of report|||||
|period (A3+B3)||||period (A4+B4)|||||
|The proportion of the total amount of actually guarantee in the|||||||||
|||||0.00%|||||
|net assets of the Company(A4+ B4)|||||||||
|Including:|||||||||
|Amount of guarantee for shareholders, actual controller and its|||||||||
|||||0|||||
|related parties(C)|||||||||
|The debts guarantee amount provided for the guaranteed parties|||||||||
|||||0|||||
|whose assets-liability ratio exceed 70% directly or indirectly(D)|||||||||

|||
|-|-|
|Proportion of total amount of guarantee in net assets of the||
||0|
|Company exceed 50%(E)||
||0|
|Total amount of the aforesaid three guarantees(C+D+E)||
|Explanations on possibly bearing joint and several liquidating||
||N/A|
|responsibilities for undue guarantees(if applicable)||
|Explanations on external guarantee against regulated||
||N/A|
|procedures(if applicable)||

Explanation on guarantee with composite way
(1) Guarantee outside against the regulation
□ Applicable√ Not applicable
No guarantee outside against the regulation in Period
3. Other material contracts
□ Applicable√ Not applicable
The Company had no other material contracts in the reporting period.
4. Other material transactions
□ Applicable√ Not applicable
The Company had no other material transactions in the reporting period.
X. Commitments made by the Company or shareholders holding above5% shares of the Company in reporting period or occurred in the previous reporting period but continued to reporting period
□ Applicable√ Not applicable
The Company had no commitment made by the Company or shareholders holding above5% shares of the Company in reporting period or occurred in the previous reporting period but continued to reporting period in Period.
XI. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes√ No
XII. Penalty and rectification
□ Applicable√ Not applicable
The Company had no penalty or rectification in the reporting period.
XIII. Risk disclosure of delisting with laws and rules violated
□ Applicable√ Not applicable
The Company has no delisting risks with laws and rules violated in Period
XIV. Explanation on other significant events
□ Applicable√ Not applicable
The Company had no explanation on other significant events in the reporting period.
Section VI. Changes in Shares and Particulars about Shareholders I. Number of shares and shares held
In Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before change||Increase/decrease in this time (+ , - )|||||After change||
||||||Capitalizat|||||
|||||Bonus|ion of|||||
||Amount|Ratio|New issue|||Other|Subtotal|Amount|Ratio|
|||||share|public|||||
||||||reserve|||||
||128,071,3|||||||128,071,3||
|I. Unlisted shares||48.13%|||||||48.13%|
||20|||||||20||
||128,071,3|||||||128,071,3||
|1. Sponsor shares||48.13%|||||||48.13%|
||20|||||||20||
|Including: State-owned|127,811,3|||||||127,811,3||
|||48.04%|||||||48.04%|
|shares|20|||||||20||
|Domestic corporate||||||||||
||260,000|0.10%||||||260,000|0.10%|
|shares||||||||||
||138,000,0|||||||138,000,0||
|II. Listed shares||51.87%|||||||51.87%|
||00|||||||00||
|2. Domestically listed|138,000,0|||||||138,000,0||
|||51.87%|||||||51.87%|
|foreign shares|00|||||||00||
||266,071,3|||||||266,071,3||
|III. Total shares||100.00%|||||||100.00%|
||20|||||||20||

Reasons for share changed
□ Applicable√ Not applicable
Approval of share changed
□ Applicable√ Not applicable
Ownership transfer of share changes
□ Applicable√ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable√ Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability of the Company
□ Applicable√ Not applicable
II. Number of shares and shares held
In Share
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Total preference shareholders|||||||
|Total common shareholders at|||||with voting rights recovered at|||||||
|||14,374||||||||0||
|period-end|||||end of reporting period (if|||||||
||||||applicable) (see Note 8)|||||||
|Particulars about shares held above 5% by shareholders or top ten shareholders||||||||||||
||||||||Amount|Amount|Number of share pledged/frozen|||
|||||Number||Chang|of|of||||
|||||of shares||es in|holding|holding||||
||Nature of||Proportion of|||||||||
|Shareholders||||held at||reporti|unlisted|listed||||
||shareholder||shares held||||||State of share||Amount|
|||||period-en||ng|circulati|circulati||||
|||||d||period|on|on||||
||||||||shares|shares||||
|ShandongState-ownedAssetsInvestmentHolding Co., Ltd|State-ownedcorporate||33.07%|88,000,000|||88,000,000|||||
|Shandong LuxinInvestmentHolding GroupCo., Ltd|State-ownedcorporate||14.18%|37,731,320|||37,731,320|||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Overseascorporate||5.50%|14,629,589||||14,629,589||||
|Chen Tianming|Overseas naturalperson||2.16%|5,760,427||||5,760,427||||
|Shanghai HKWanguosecurities|Overseascorporate||1.15%|3,069,300||||3,069,300||||
|China NationalHeavy DutyTruck GroupJinan Truck LLC.|State-ownedcorporate||0.73%|1,950,000|||1,950,000|||||
|Wang Dongsheng|Overseas naturalperson||0.58%|1,531,810||||1,531,810||||
|Yi Ying|Overseas natural||0.41%|1,078,200||||1,078,2||||

||||||||
|-|-|-|-|-|-|-|
||person|||00|||
|Huang Jiayi|Overseas naturalperson|0.39%|1,048,687|1,048,687|||
|Lin Mingyu|Domestic natureperson|0.31%|829,600|829,600|||
|Strategy investors or general|||||||
|corporate becomes top 10|||||||
|||Not applicable|||||
|shareholders due to rights issued (if|||||||
|applicable)(Note 3)|||||||
|||Shandong State-owned Assets Investment Holding Co., Ltd and Shandong Luxin Investment|||||
|||Holding Group Co., Ltd are provincial state-owned enterprises under the same stock controlling of|||||
|||Shandong Provincial Commission; China National Heavy Duty Truck Group Jinan Truck LLC|||||
|||is the sponsor shareholder of the Company and the above mentioned shareholders have no|||||
|Explanation on associated|||||||
|||associated relationships or not belong to consistent actors regulated by Management|||||
|relationship among the aforesaid|||||||
|||Regulation of Information Disclosure on Change of Shareholding for Listed Companies.|||||
|shareholders|||||||
|||Rests of the shareholders are the domestically listed foreign shareholders, and t he Company|||||
|||is unknown whether there exists associated relationship or belongs to consistent actor|||||
|||regulated by “management method for acquisition of listed company” among the above said|||||
|||shareholders.|||||
|Particulars about the shares held by the top ten unrestricted shareholders|||||||
||||||Type of shares||
|Shareholders||Amount of circulated shares held at period-end|||||
||||||Type|Amount|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED||14,629,589|||Domestically||
||||||listed foreign|14,629,589|
||||||shares||
|Chen Tianming||5,760,427|||Domestically||
||||||listed foreign|5,760,427|
||||||shares||
|Shanghai HK Wanguo securities||3,069,300|||Domestically||
||||||listed foreign|3,069,300|
||||||shares||
|Wang Dongsheng||1,531,810|||Domestically||
||||||listed foreign|1,531,810|
||||||shares||
|Yi Ying||1,078,200|||Domestically||
||||||listed foreign|1,078,200|
||||||shares||
|Huang Jiayi||1,048,687|||Domestically||
||||||listed foreign|1,048,687|
||||||shares||

|||||
|-|-|-|-|
|Lin Mingyu|829,600|Domestically||
|||listed foreign|829,600|
|||shares||
|Zhu Guanhong|818,500|Domestically||
|||listed foreign|818,500|
|||shares||
|Zhu Xionghui|813,640|Domestically||
|||listed foreign|813,640|
|||shares||
|WU CHI LI|615,900|Domestically||
|||listed foreign|615,900|
|||shares||
|Expiation on associated relationship||||
||It is unknown whether the shareholders just mentioned belong to consistent actors or have|||
|or consistent actors within the top 10||||
||associated relationship or regulated by the Management Regulation of Information|||
|un-restrict shareholders and between||||
||Disclosure on Change of Shareholding for Listed Companies.|||
|top 10 un-restrict shareholders and||||
|top 10 shareholders||||
|Explanation on top 10 shareholders||||
|involving margin business (if|Not applicable|||
|applicable)(see note4)||||

Whether has a buy-back agreement dealing in reporting period
□Yes√No
The shareholders o f the Company had no buy-back agreement dealing in reporting period.
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable√ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable√ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
IV. Share holding increasing plan proposed or implemented in reporting period from shareholder of the Company and its concerted action person
□ Applicable√Not applicable
As far as the Company know, there are no share holding increasing plan proposed or implemented in Period from shareholder of the Company and its concerted action person
Section VII. Preferred Stock
I. Issuance and listing of preferred stock in Period
□ Applicable√ Not applicable
II. Number of shareholders with preferred stock held and shareholdings
□ Applicable√ Not applicable
III. Repurchase and conversion of preferred stock
1. Preferred stock repurchased
□ Applicable√ Not applicable
2. Preferred stock converted
□ Applicable√ Not applicable
IV. Preferred stock with voting rights recovered and executed
□ Applicable√ Not applicable
V. Accounting policy taken for preferred stock and reasons
□ Applicable√ Not applicable
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable√ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report 2013.
II. Resignation and dismissal of directors, supervisors and senior executives
□ Applicable√ Not applicable
Resignation and dismissal of directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report 2013.
Section IX. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes√ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated balance sheet
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|42,334,283.42|53,935,725.66|
|Settlement funds|||
|Lending funds|||
|Tradable financial assets|||
|Notes receivable|||
||1,755,790.58|12,826,646.26|
|Accounts receivable|||
||26,061,141.45|13,076,947.00|
|Prepayments|||
|Premium receivable|||
|Reinsurance accounts receivable|||
|Reinsurance contract reserve|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|3,021,739.52|3,153,387.04|
|Buying back the sale of financial|||
|assets|||
|Inventory|219,347,879.49|221,650,252.50|
|Non-current assets due within one|||
|year|||

||||
|-|-|-|
|Other current assets||7,000,000.00|
|Total current assets|292,520,834.46|311,642,958.46|
|Non-current assets:|||
|Issuance of loans and advances|||
|Financial assets available for Sale|||
|Held-to-maturity investment|||
|Long-term receivables|||
|Long term equity investment|||
|Investment real estate|35,385,055.98|35,994,388.74|
|Fixed asset|371,843,330.26|381,996,023.55|
|Project in progress|8,848,054.22|503,686.68|
|Project materials|||
|Liquidation of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible asset|6,846,410.26|6,968,418.76|
|Development expenditure|||
|Goodwill|||
|Long-term deferred expenditure|40,889.00|40,889.00|
|Deferred income tax asset|171,707.51|171,707.51|
|Other non-current asset|||
|Total non-current asset|423,135,447.23|425,675,114.24|
|Total Assets|715,656,281.69|737,318,072.70|
|Current Liabilities:|||
|Short-term borrowing|29,258,210.07|21,607,961.51|
|Borrowing from the central bank|||
|Deposits and interbank deposit|||
|Borrowed capital|||
|Transaction financial liabilities|||
|Notes payable|||
||63,650,001.43|76,012,642.77|
|Accounts payable|||
|Account received in advance|752,793.29|12,146,815.00|
|Financial assets sold for|||
|repurchase|||

||||
|-|-|-|
|Fees and commissions payable|||
|Salary payable|12,961,209.81|15,524,742.60|
|Taxes payable|-6,609,031.09|-11,250,338.56|
|||182,865.05|
|Interest payable|||
||459,329.80|459,329.80|
|Dividend payable|||
|Other payables|7,351,672.46|7,397,363.29|
|Reinsurance payables|||
|Reserves for insurance contracts|||
|Agency securities trading|||
|Agency securities underwriting|||
|Non-current liabilities due within|||
||10,038,164.53|18,162,141.05|
|one year|||
|Other current liabilities|||
||117,862,350.30|140,243,522.51|
|Total current liabilities|||
|Non-current liabilities|||
|Long-term loans|17,246,666.66|17,246,666.66|
|Bonds payable|||
|Long-term payables|||
|Special payables|||
|Accrued liabilities|||
|Deferred income tax liability|||
|Other non-current liability|13,172,211.05|13,172,211.05|
|Total non-current liability|30,418,877.71|30,418,877.71|
|Total liability|148,281,228.01|170,662,400.22|
|Owners’ equity (or Shareholder’s|||
|equity):|||
|Paid-in capital(share capital)|266,071,320.00|266,071,320.00|
|Capital surplus|281,245,215.96|281,245,215.96|
|Less: treasury stock|||
|Special reserve|||
|Surplus reserve|21,908,064.19|21,908,064.19|
|Reserve for general risks|||
|Retained profit|-27,125,266.85|-28,432,075.99|
|Converted difference in foreign|||
||52,012.74|58,213.82|
|currency Statements|||

||||
|-|-|-|
|Total owner’s equity attributable to|||
||542,151,346.04|540,850,737.98|
|parent company|||
|Interest of minority shareholders|25,223,707.64|25,804,934.50|
|Total owners’ equity (or shareholders|||
||567,375,053.68|566,655,672.48|
|equity)|||
|Total liabilities and owners’ equity (or|||
||715,656,281.69|737,318,072.70|
|shareholders equity)|||

Legal Representative: Li Wenyi Person in Charge of Accounting: Zhang Weiping Person in Charge of Accounting Department: Lei Lixin
2. Balance Sheet of Parent Company
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary fund|9,080,954.88|13,401,133.74|
|Tradable financial assets|||
|Notes receivable|||
|Accounts receivable|9,430,401.60|816.60|
|Prepayments|12,981,152.99|10,948,421.22|
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|32,567,557.13|32,786,716.82|
|Inventory|124,945,942.58|146,992,378.77|
|Non-current assets due within one|||
|year|||
|Other current assets||7,000,000.00|
|Total current assets|189,006,009.18|211,129,467.15|
|Non-current assets:|||
|Financial assets available for Sale|||
|Held-to-maturity investment|||
|Long-term receivables|6,868,229.37|6,426,342.82|
|Long term equity investment|118,779,655.23|118,779,655.23|
|Investment real estate|35,385,055.98|35,994,388.74|
|Fixed assets|183,521,532.43|189,368,170.78|

||||
|-|-|-|
|Project in progress|||
|Project materials|||
|Liquidation of fixed assets|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|13,943.22|17,743.20|
|Development expenditure|||
|Goodwill|||
|Long-term deferred expenditure|||
|Deferred income tax asset|||
|Other non-current assets|||
|Total non-current assets|344,568,416.23|350,586,300.77|
|Total assets|533,574,425.41|561,715,767.92|
|Current liabilities:|||
|Short-term borrowing|10,400,000.00||
|Transaction financial liabilities|||
|Notes payable|||
|Accounts payable|27,215,563.41|42,365,714.15|
|Account received in advance|752,793.29|6,926,894.06|
|Salary payable|6,689,502.09|8,389,315.71|
|Taxes payable|584,250.30|566,935.89|
|Interest payable||67,211.91|
|Dividend payable|459,329.80|459,329.80|
|Others payables|54,628,229.70|49,612,282.73|
|Non-current liabilities due within|||
||9,619,059.85|17,323,931.63|
|one year|||
|Other current liabilities|||
|Total current liabilities|110,348,728.44|125,711,615.88|
|Non- current liabilities:|||
|Long-term loans|17,246,666.66|17,246,666.66|
|Bonds payable|||
|Long-term payables|||
|Special payables|||
|Accrued liabilities|||

||||
|-|-|-|
|Deferred income tax liability|||
|Other non-current liability|789,800.57|789,800.57|
|Total non-current liability|18,036,467.23|18,036,467.23|
|Total liabilities|128,385,195.67|143,748,083.11|
|Owners’ equity (or Shareholder’s|||
|equity):|||
|Paid-in capital(share capital)|266,071,320.00|266,071,320.00|
|Capital surplus|279,115,900.17|279,115,900.17|
|Less: treasury stock|||
|Special reserve|||
|Surplus reserve|19,184,672.34|19,184,672.34|
|Reserve for general risks|||
|Retained profit|-159,182,662.77|-146,404,207.70|
|Converted difference in foreign|||
|currency|||
|Total owners’ equity (or shareholders|||
||405,189,229.74|417,967,684.81|
|equity)|||
|Total liabilities and owners’ equity (or|||
||533,574,425.41|561,715,767.92|
|shareholders equity)|||

Legal Representative: Li Wenyi Person in Charge of Accounting: Zhang Weiping Person in Charge of Accounting Department: Lei Lixin
3. Consolidated Income Statements
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
In RMB
||||
|-|-|-|
|Item|Current Amount|Amount of the Previous Period|
|I. Total operation revenue|260,016,584.61|264,728,360.22|
|Including: Operating revenue|260,016,584.61|264,728,360.22|
|Interest income|||
|Earned premium|||
|Fee and commission|||
|income|||
|II Total Operating cost|259,325,768.29|264,523,951.61|
|Including: Operating costs|239,126,034.18|219,741,407.76|
|Interest costs|||

||||
|-|-|-|
|Fee and commission costs|||
|Cash surrender|||
|Net compensation expenses|||
|Net extraction reserves for|||
|insurance contracts|||
|Policy dividend payout|||
|Reinsurance expense|||
|Business tax and surcharge|392,030.96|553,189.30|
|Sales expenses|2,138,614.48|2,162,304.33|
|Administrative expenses|16,577,378.13|13,721,691.25|
|Financial expenses|1,091,710.54|244,394.62|
|Asset impairment losses||28,100,964.35|
|Add: gains from changes of|||
|fair value (Loss is listed with “-”)|||
|Investment gain (Loss is|||
|listed with “-”)|||
|Including: Investment gains|||
|on affiliated Company and joint venture|||
|Exchange gains (Loss is|||
|listed with “-”)|||
|III. Operating profits (Loss is listed|||
||690,816.32|204,408.61|
|with “-”)|||
|Add: Non-operating income|478,581.95|1,521,000.92|
|Less: Non-operating expenditure|299,557.45|383,366.53|
|Including: Disposal loss on|||
||291,933.45|383,366.53|
|non-current liability|||
|IV Total profits (Total loss is listed with|||
||869,840.82|1,342,043.00|
|“-”)|||
|Less: Income tax expenses|144,258.54|28,100.00|
|V. Net profit (Net loss is listed with “-”)|725,582.28|1,313,943.00|
|Including: Net profit generated by|||
|combined party before merged|||
|Net profit attribute to owners of|||
||1,306,809.14|1,331,772.94|
|parent company|||
|Minority interest|-581,226.86|-17,829.94|
|VI. Earnings per share(EPS)|--|--|

||||
|-|-|-|
|(i) Basic Earnings per share(EPS)|0.005|0.005|
|(ii) Diluted Earnings per|||
||0.005|0.005|
|share(EPS)|||
|VII. Other consolidated income|-6,201.08|624,046.25|
|VIII. Total consolidated income|719,381.20|1,937,989.25|
|Total consolidated income|||
|attributable to owners of parent|1,300,608.06|1,955,819.19|
|company|||
|Total consolidated income|||
||-581,226.86|-17,829.94|
|attributable to minority shareholders|||

Legal Representative: Li Wenyi Person in Charge of Accounting: Zhang Weiping Person in Charge of Accounting Department: Lei Lixin
4. Profit Statement of parent company
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
In RMB
||||
|-|-|-|
|Items|Current Amount|Amount of the Previous Period|
|I. Operation revenue|110,632,911.88|77,302,186.47|
|Less: Operating costs|112,102,413.16|52,558,645.91|
|Business tax and surcharge|240,453.35|408,041.83|
|Sales expenses|185,615.30|320,070.10|
|Administrative expenses|10,384,249.02|8,699,221.16|
|Financial expenses|506,278.72|-2,583,406.92|
|Asset impairment losses||28,100,964.35|
|Add: gains from changes of fair|||
|value(Loss is listed with “-”)|||
|Investment gain(Loss is listed|||
|with “-”)|||
|Including: Investment gains|||
|on affiliated Company and joint venture|||
|III. Operating profits (Loss is listed|||
||-12,786,097.67|-10,201,349.96|
|with “-”)|||
|Add: Non-operating income|8,642.60|5,591,525.84|
|Less: Non-operating expenditure|1,000.00|38,833.00|
|Including: Disposal loss on|||
|non-current liability|||
|III. Total profit (Loss is listed with “-”)|-12,778,455.07|-4,648,657.12|

||||
|-|-|-|
|Less: Income tax expenses|||
|IV. Net profit (net loss is listed with “-”)|-12,778,455.07|-4,648,657.12|
|V. Earnings per share(EPS):|--|--|
|(i) Basic Earnings per share(EPS)|-0.048|-0.175|
|(ii) Diluted Earnings per|||
||-0.048|-0.175|
|share(EPS)|||
|VI. Other consolidated income|||
|VII. Total consolidated income|-12,778,455.07|-4,648,657.12|

 Legal Representative: Li Wenyi Person in Charge of Accounting: Zhang Weiping Person in Charge of Accounting Department: Lei Lixin
5. Consolidated Cash Flow Statement
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
In RMB
||||
|-|-|-|
|Items|Current Amount|Amount of the Previous Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|261,347,101.18|230,660,666.38|
|services|||
|Net increase of customer deposit and|||
|interbank deposit|||
|Net increase of loan from central|||
|bank|||
|Net increase of capital borrowed|||
|from other financial institution|||
|Cash received from original|||
|insurance contract fee|||
|Net cash received from reinsurance|||
|business|||
|Net increase of insured savings and|||
|investment|||
|Net increase of disposal of|||
|transaction financial asset|||
|Cash received from interest,|||
|commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business|||

||||
|-|-|-|
|capital|||
|Write-back of tax received|23,929,792.87|12,189,045.48|
|Other cash received concerning|||
||8,827,066.97|27,985,523.92|
|operating activities|||
|Subtotal of cash inflow arising from|||
||294,103,961.02|270,835,235.78|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|229,949,930.76|217,694,025.61|
|service|||
|Net increase of customer loans and|||
|advances|||
|Net increase of deposits in central|||
|bank and interbank|||
|Cash paid for original insurance|||
|contract compensation|||
|Cash paid for interest, commission|||
|charge and commission|||
|Cash paid for bonus of guarantee|||
|slip|||
|Cash paid to/for staff and workers|39,653,914.45|29,988,312.71|
|Taxes paid|3,232,169.03|1,645,241.25|
|Other cash paid concerning|||
||19,546,017.41|42,422,753.42|
|operating activities|||
|Subtotal of cash outflow arising from|||
||292,382,031.65|291,750,332.99|
|operating activities|||
|Net cash flows arising from operating|||
||1,721,929.37|-20,915,097.21|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|132,974.00|84,260.00|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||

||||
|-|-|-|
|Other cash received concerning|||
|||33,974,356.00|
|investing activities|||
|Subtotal of cash inflow from investing|||
||132,974.00|34,058,616.00|
|activities|||
|Cash paid for purchasing fixed,|||
||11,757,223.91|24,665,948.50|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash paid for obtaining|||
|subsidiaries and other units|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||11,757,223.91|24,665,948.50|
|activities|||
|Net cash flows arising from investing|||
||-11,624,249.91|9,392,667.50|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|||26,000,000.00|
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|||
|investment by subsidiaries|||
|Cash received from loans|21,113,015.94|14,540,265.98|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||21,113,015.94|40,540,265.98|
|activities|||
|Cash paid for settling debts|21,400,448.16|5,510,969.88|
|Cash paid for dividend and profit|||
||1,585,787.99|2,313,143.17|
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from financing|22,986,236.15|7,824,113.05|

||||
|-|-|-|
|activities|||
|Net cash flows arising from financing|||
||-1,873,220.21|32,716,152.93|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|174,098.51|-227,334.46|
|exchange rate|||
|V. Net increase of cash and cash|||
||-11,601,442.24|20,966,388.76|
|equivalents|||
|Add: Balance of cash and cash|||
||53,935,725.66|28,287,601.46|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||42,334,283.42|49,253,990.22|
|equivalents at the period -end|||

Legal Representative: Li Wenyi Person in Charge of Accounting: Zhang Weiping Person in Charge of Accounting Department: Lei Lixin
6. Cash Flow Statement of parent company
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
In RMB
||||
|-|-|-|
|Item|Current Amount|Amount of the Previous Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|97,512,745.74|50,291,346.17|
|services|||
|Write-back of tax received|||
|Other cash received concerning|||
||4,364,018.87|22,905,133.04|
|operating activities|||
|Subtotal of cash inflow arising from|||
||101,876,764.61|73,196,479.21|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|80,816,610.46|59,211,420.68|
|service|||
|Cash paid to/for staff and workers|15,170,672.53|10,679,592.87|
|Taxes paid|295,186.29|457,103.57|
|Other cash paid concerning|||
||11,491,311.44|6,689,803.36|
|operating activities|||
|Subtotal of cash outflow arising from|||
||107,773,780.72|77,037,920.48|
|operating activities|||
|Net cash flows arising from operating|-5,897,016.11|-3,841,441.27|

||||
|-|-|-|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|||
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|||33,974,356.00|
|investing activities|||
|Subtotal of cash inflow from investing|||
|||33,974,356.00|
|activities|||
|Cash paid for purchasing fixed,|||
||15,960.00|13,396,619.50|
|intangible and other long-term assets|||
|Cash paid for investment||12,285,800.00|
|Net cash paid for obtaining|||
|subsidiaries and other units|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||15,960.00|25,682,419.50|
|activities|||
|Net cash flows arising from investing|||
||-15,960.00|8,291,936.50|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|10,400,000.00|7,600,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||10,400,000.00|7,600,000.00|
|activities|||
|Cash paid for settling debts|7,697,777.78||

||||
|-|-|-|
|Cash paid for dividend and profitdistributing or interest paying|||
||1,084,039.95|1,925,976.78|
|Other cash paid concerningfinancing activities|||
|Subtotal of cash outflow from financingactivities|||
||8,781,817.73|1,925,976.78|
|Net cash flows arising from financingactivities|||
||1,618,182.27|5,674,023.22|
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|-25,385.02||
|exchange rate|||
|V. Net increase of cash and cashequivalents|||
||-4,320,178.86|10,124,518.45|
|Add: Balance of cash and cashequivalents at the period -begin|||
||13,401,133.74|16,467,806.39|
|VI. Balance of cash and cashequivalents at the period -end|||
||9,080,954.88|26,592,324.84|

Legal Representative: Li Wenyi Person in Charge of Accounting: Zhang Weiping Person in Charge of Accounting Department: Lei Lixin
7. Consolidated Statement on Changes of Owners' Equity
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
Current Amount
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Current Amount||||||||||
||Owners' equity attributable to the parent company||||||||||
||||||||||Interest of||
||Paid-in|||||Reserve||||Total|
|Item|||||||||||
||||Less:||||||minority||
||capital(s|Capital||Special|Surplus|for|Retaine|||owners’|
||||treasury|||||Other|sharehold||
||hare|surplus||reserve|reserve|general|d profit|||equity|
||||stock||||||ers||
||capital)|||||risks|||||
|I. Balance at the end of last|266,071|281,245,|||21,908,||-28,432,|58,213.8|25,804,93|566,655,67|
|year|,320.00|215.96|||064.19||075.99|2|4.50|2.48|
|Add: Changes of|||||||||||
|accounting policy|||||||||||
|Error correction of|||||||||||
|previous period|||||||||||
|Others|||||||||||
|II. Balance at the beginning of|266,071|281,245,|||21,908,||-28,432,|58,213.8|25,804,93|566,655,67|
|this year|,320.00|215.96|||064.19||075.99|2|4.50|2.48|

|||||||||
|-|-|-|-|-|-|-|-|
|III. Increase/ Decrease in this||||||||
|||||1,306,80|-6,201.0|-581,226.||
|year (Decrease is listed|||||||719,381.20|
|||||9.14|8|86||
|with'"-")||||||||
|||||1,306,80||||
|(i) Net profit|||||||725,582.28|
|||||9.14||||
||||||-6,201.0|-581,226.||
|(ii) Other consolidated income|||||||-6,201.08|
||||||8|86||
|||||1,306,80|-6,201.0|-581,226.||
|Subtotal of (i)and (ii)|||||||719,381.20|
|||||9.14|8|86||
|(III) Owners' devoted and||||||||
|decreased capital||||||||
|1. Owners' devoted capital||||||||
|2. Amount calculated into||||||||
|owners' equity paid in shares||||||||
|3. Others||||||||
|(IV)Profit distribution||||||||
|1. Withdrawal of surplus||||||||
|reserves||||||||
|2. Withdrawal of general risk||||||||
|provisions||||||||
|3. Distribution for owners||||||||
|(shareholders)||||||||
|4. Others||||||||
|(V) Carrying forward internal||||||||
|owners' equity||||||||
|1. Capital reserves conversed to||||||||
|capital (share capital)||||||||
|2. Surplus reserves conversed||||||||
|to capital (share capital)||||||||
|3. Remedying loss with||||||||
|surplus reserve||||||||
|4. Others||||||||
|(VI) Special reserve||||||||
|1. Withdrawal in this period||||||||
|2. Usage in this period||||||||
|(VII) Other||||||||
|IV. Balance at the end of the|266,071|281,245,|21,908,|-27,125,|52,012.7|25,223,70|567,375,053.68|
|report period|,320.00|215.96|064.19|266.85|4|7.64||

Amount in last period
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last period||||||||||
||Owners’ equity attributable to the parent company||||||||||
||||||||||Interest of||
||Paid-in|||||Reserve||||Total|
|Items|||Less:||||||minority||
||capital(s|Capital||Special|Surplus|for|Retaine|||owners’|
||||treasury|||||Other|sharehold||
||hare|surplus||reserve|reserve|general|d profit|||equity|
||||stock||||||ers||
||capital)|||||risks|||||
|I. Balance at the end of last|266,071|281,245,|||21,908,||-93,413,|1,014,14||476,829,36|
||||||||||4,387.09||
|year|,320.00|215.96|||064.19||762.00|1.42||6.66|
|Add: retroactive|||||||||||
|adjustment arising from|||||||||||
|enterprise consolidation under|||||||||||
|the same control|||||||||||
|Add: Changes of|||||||||||
|accounting policy|||||||||||
|Error correction of|||||||21,771,2|||21,771,200|
|previous period|||||||00.00|||.00|
||||||||-14,188.||25,986,82|25,972,635|
|Other|||||||||||
||||||||99||4.52|.53|
|II. Balance at the beginning of|266,071|281,245,|||21,908,||-71,656,|1,014,14|25,991,21|524,573,20|
|this year|,320.00|215.96|||064.19||750.99|1.42|1.61|2.19|
|III. Increase/ Decrease in this|||||||||||
||||||||43,224,6|-955,92|-186,277.|42,082,470|
|year (Decrease is listed|||||||||||
||||||||75.00|7.60|11|.29|
|with’”-”)|||||||||||
||||||||43,224,6|-955,92|-186,277.|43,038,397|
|(i) Net profit|||||||||||
||||||||75.00|7.60|11|.89|
|||||||||||-955,927.6|
|(II) Other consolidated income|||||||||||
|||||||||||0|
||||||||43,224,6|-955,92|-186,277.|42,082,470|
|Subtotal of (i)and (ii)|||||||||||
||||||||75.00|7.60|11|.29|
|(III) Owners’ devoted and|||||||||||
|decreased capital|||||||||||
|1. Owners’ devoted capital|||||||||||
|2. Amount calculated into|||||||||||
|owners’ equity paid in shares|||||||||||
|3. Others|||||||||||
|(IV)Profit distribution|||||||||||
|1. Withdrawal of surplus|||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|reserves||||||||
|2. Withdrawal of general risk||||||||
|provisions||||||||
|3. Distribution for owners||||||||
|(shareholders)||||||||
|4. Others||||||||
|(V) Carrying forward internal||||||||
|owners’ equity||||||||
|1. Capital reserves conversed to||||||||
|capital (share capital)||||||||
|2. Surplus reserves conversed||||||||
|to capital (share capital)||||||||
|3. Remedying loss with||||||||
|surplus reserve||||||||
|4. Others||||||||
|( VI) Special reserve||||||||
|1. Withdrawal in this period||||||||
|2. Usage in this period||||||||
|(VII) Other||||||||
|IV. Balance at the end of the|266,071|281,245,|21,908,|-28,432,|58,213.8|25,804,93|566,655,67|
|report period|,320.00|215.96|064.19|075.99|2|4.50|2.48|

 Legal Representative: Li Wenyi Person in Charge of Accounting: Zhang Weiping Person in Charge of Accounting Department: Lei Lixin
8. Statement on Changes of Owners' Equity of Parent Company
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
Current Amount
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Current AmountPaid-in Less: Reserve TotalCapital Special Surplus Retainedcapital(sha treasury for general owners’surplus reserve reserve profitre capital) stock risks equity||||||||
||||Less:|||Reservefor generalrisks||Total|
|Items||Capital||Special|Surplus||Retained||
||||treasury|||||owners’|
|||surplus||reserve|reserve||profit||
||||stock|||||equity|
||266,071,320.00|279,115,90|||19,184,672||-146,404,2|417,967,68|
|I. Balance at the end of last year|||||||||
|||0.17|||.34||07.70|4.81|
|Add: Changes of accountin|g||||||||
|policy|||||||||
|Error correction of|||||||||
|previous period|||||||||

|||||||
|-|-|-|-|-|-|
|Other||||||
|II. Balance at the beginning of|266,071,32|279,115,90|19,184,672|-146,404,2|417,967,68|
|this year|0.00|0.17|.34|07.70|4.81|
|III. Increase/ Decrease in this||||-12,778,45|-12,778,45|
|year (Decrease is listed with’”-”)||||5.07|5.07|
|||||-12,778,45|-12,778,45|
|(i) Net profit||||||
|||||5.07|5.07|
|(II) Other consolidated income||||||
|||||-12,778,45|-12,778,45|
|Subtotal of (i)and (ii)||||||
|||||5.07|5.07|
|(III) Owners’ devoted and||||||
|decreased capital||||||
|1. Owners’ devoted capital||||||
|2. Amount calculated into||||||
|owners’ equity paid in shares||||||
|3. Others||||||
|(IV)Profit distribution||||||
|1. Withdrawal of surplus reserves||||||
|2. Withdrawal of general risk||||||
|provisions||||||
|3. Distribution for owners||||||
|(shareholders)||||||
|4. Others||||||
|(V) Carrying forward internal||||||
|owners’ equity||||||
|1. Capital reserves conversed to||||||
|capital (share capital)||||||
|2. Surplus reserves conversed to||||||
|capital (share capital)||||||
|3. Remedying loss with surplus||||||
|reserve||||||
|4. Others||||||
|(VI) Special reserve||||||
|1. Withdrawal in this period||||||
|2. Usage in this period||||||
|(VII) Other||||||
|IV. Balance at the end of the|266,071,32|279,115,90|19,184,672|-159,182,6|405,189,22|

|||||||
|-|-|-|-|-|-|
|report period|0.00|0.17|.34|62.77|9.74|

 Amount in last year
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in last year||||||||
||Paid-in||Less:|||Reserve||Total|
|Item||Capital||Special|Surplus||Retained||
||capital(sha||treasury|||for general||owners’|
|||surplus||reserve|reserve||profit||
||re capital)||stock|||risks||equity|
||266,071,32|279,130,08|||19,184,672||-192,777,4|371,608,64|
|I. Balance at the end of last year|||||||||
||0.00|9.16|||.34||38.29|3.21|
|Add: Changes of accounting|||||||||
|policy|||||||||
|Error correction of previous|||||||21,771,200|21,771,200|
|period|||||||.00|.00|
|Other|||||||||
|II. Balance at the beginning of|266,071,32|279,130,08|||19,184,672||-171,006,2|393,379,84|
|this year|0.00|9.16|||.34||38.29|3.21|
|III. Increase/ Decrease in this|||||||24,602,030|24,587,841|
|||-14,188.99|||||||
|year (Decrease is listed with’”-”)|||||||.59|.60|
||||||||24,602,030|24,602,030|
|(i) Net profit|||||||||
||||||||.59|.59|
|(II) Other consolidated income|||||||||
||||||||24,602,030|24,602,030|
|Subtotal of (i)and (ii)|||||||||
||||||||.59|.59|
|(III) Owners’ devoted and|||||||||
|||-14,188.99||||||-14,188.99|
|decreased capital|||||||||
|1. Owners’ devoted capital|||||||||
|2. Amount calculated into|||||||||
|owners’ equity paid in shares|||||||||
|3. Others||-14,188.99||||||-14,188.99|
|(IV)Profit distribution|||||||||
|1. Withdrawal of surplus reserves|||||||||
|2. Withdrawal of general risk|||||||||
|provisions|||||||||
|3. Distribution for owners|||||||||
|(shareholders)|||||||||
|4. Others|||||||||
|(V) Carrying forward internal|||||||||
|owners’ equity|||||||||

|||||||
|-|-|-|-|-|-|
|1. Capital reserves conversed to||||||
|capital (share capital)||||||
|2. Surplus reserves conversed to||||||
|capital (share capital)||||||
|3. Remedying loss with surplus||||||
|reserve||||||
|4. Others||||||
|(VI) Special reserve||||||
|1. Withdrawal in this period||||||
|2. Usage in this period||||||
|(VII) Other||||||
|IV. Balance at the end of the|266,071,32|279,115,90|19,184,672|-146,404,2|417,967,68|
|report period|0.00|0.17|.34|07.70|4.81|

 Legal Representative: Li Wenyi Person in Charge of Accounting: Zhang Weiping Person in Charge of Accounting Department: Lei Lixin
III. Company profile
Shandong Zhonglu Oceanic Fisheries Co., Ltd. (the “Company”) was incorporated as a joint stock limited company in thePeople’s Republic of China on 30 July 1999 according to the documentation of Lu Ti Gai Zi[1999] No.85 issued by Shandong Development and Reform Commission, and the holding company of the Company is Shandong Fisheries Enterprise Group General Corporation, the main sponsor. On 26 June 2000, the Company issued 120 million domestic listed foreign shares (B shares) to foreign investors with face value of One Yuan per share according to the approval documentation of Zheng Jian Fa Xing Zi[2000] No.82 issued by the China Securities Regulatory Commission. The B shares listed on the Shenzhen Stock Exchange dated 24 July 2000. On 22 August 2000, by theCompany’s authorization, lead underwriters fully exercised the15% over-allotment option and issued 18 million B shares to foreign investors again with face value of 1 Yuan per share, and then the Company's total issued share capital is 266,071,320.00 Yuan.
Since 2003, 125,731,320 state-owned legal person shares (representing47.25% of the total share capital of the Company) held by Shandong Fisheries Enterprise Group General Corporation (“Fisheries Group”) have been frozen by the judiciary, including: A. Fisheries Group provided guarantee for the loan of 11,700,000 Yuan for a subordinate company, but the subordinate company failed to repay the loan on time, so Shandong Yantai Intermediate People's Court froze 8,000,000 shares (representing3% of the total share capital). B. Fisheries Group borrowed 73,580,680 Yuan from the Agricultural Bank of China Jinan Lixia branch, and Jinan Lixia Court
froze 80,000,000 shares (representing30.07% of the total share capital).
On 10 December 2006, shares of the Company 88,000,000 shares held by Fisheries Group were auctioned publicly. According to the auction transaction confirmation (Lu Yin Pai Cheng Zi[2006] No.96) of Shandong Silver Star Auction Ltd., Shandong State-owned Assets Investment Holdings Ltd. bought the shares at the price of 48,400,000 Yuan. Shandong State-owned Assets Investment Holdings Ltd. comes to the first majority shareholder of the Company with33.07% equity of the Company held after auction. Relevant transfer procedures completed on 20 June 2007. .
Fisheries Group borrowed 73,344,932 Yuan from Bank of China Jinan branch (the creditor of the loan was changed to China Xinda Asset Management Corporation from Bank of China in 2004), and Shandong Higher People's Court froze 37,731,320 shares (representing14.18% of the total share capital). On 7 June 2005, the above 37,731,320 shares were auctioned publicly, according to the auction transaction confirmation (Lu Rui Cheng Zi[2005] No.013) of Shandong Qilu Rui Feng Auction Ltd., Shandong Luxin Investment Holdings Ltd. bought the shares at the price of 8,760,000 Yuan. On 2 February 2007, relevant transfer procedures have been completed. Corporate industry: sea-going fisheries
Corporate major products: tuna and its products
Corporate registered address: No. 43, Heping Road, Jinan, Shandong Province, PRC
Operating scope: marine and oceanic fishing; aquatic products breeding, processing and marketing; merchandise import and export business within approved scope; ice machine manufacture and sale; refrigeration equipment manufacturing, installation, maintenance; refrigeration; load and unload services; housing lease.
Basic organization structure of the Company: board of shareholders, board of directors, supervisory committee, office of the board, general affairs department, departments of human resources, financing plan department, corporate operation department and office of auditory supervision. Three branches are Shandong Zhonglu Oceanic Qingdao Haiwei Branch, Shandong Zhonglu Oceanic Qingdao Haiyan Branch and Shandong Zhonglu Oceanic Qingdao Refrigeration Branch. Three wholly-owned subsidiaries are Shandong Zhonglu Fishery Shipping Co., Ltd., Shandong Zhonglu Oceanic (Yantai) Foods Co., Ltd. and HABITAT INTERNATIONAL CORP. The operation entity–YAW ADDO FISHERIES COMPANY LIMITED, is controlled by operation lease. The Company has a new subsidiary Shandong Zhonglu Haiyan Deep-sea Fishery Co., Ltd. in 2013 with equity of51.85% held.
IV．Main accounting policies and estimates and previous errors
1. Preparation basis of Financial Statements
Base on the assumption of running continuously and actual transactions and events, in line with the Accounting Standards for Business Enterprise– Basic Standards and No. 38 specific principle of accounting standards issued on 15 February 2006 from the Ministry of Finance as well as the application guidance, interpretational and other relevant regulations of Standards, the Company prepared and formulate the financial statement lies on the followed important accounting policy and estimation.
2. Declaration of obedience to Accounting Standards for Business Enterprise
The Financial Statements of the Company are up to requirements of Accounting Standards for Business Enterprise and also a true and thorough reflection to the relevant information as theCompany’s financial position dated 30th June 2014 and the operation results as well as cash flow in first half year of 2014.
3. Accounting period
TheCompany’s accounting year is Gregorian calendar year, namely from
1st
January to
31st
December of every year.
4. Bookkeeping standard currency
The Renminbi (RMB) is taken as the book-keeping standard currency
5. Accounting methods for consolidation of enterprises under the same control or otherwise
(1) Consolidation of enterprises under the same control
As for the consolidation of enterprises under the same control, the assets and liabilities received by the combining party in the consolidation are measured on the book value of the combined party on consolidation day. The difference between the book value of net assets, acquired by combining party, and book value of consideration (or total face value of the shares issued) paid, capital surplus adjusted; if the capital surplus not enough to written down, than retained earning adjusted. Directly expenses occurred in combination from the combining party should be reckoned into current gains/losses.
(2) Consolidation of enterprises not under the same control
As for the consolidation not under the same control, the consolidation cost is the fair value of the assets paid, liabilities incurred or committed, and equity securities offered, for obtaining the control right over the purchased party. As for the consolidation achieved by several exchange transactions, the consolidation cost is the total of each single transaction. All expenses of the purchasing party for and directly related to the consolidation are reckoned into the corporate consolidation cost. For those agreements that made in consolidation contracts for future events which might have influenced on consolidation cost, on purchased day, if the estimated future events probably going to occurred and the influence amount on consolidation cost should be calculated reliably, than reckoned into consolidation cost.
As for acquiree that obtained by consolidation not under the same control, the qualified confirmation of identified assets, liability and contigency liabilities should calculated by fair value on day of purchsaed. If the consolidation cost larger than the fair value amount of indentified net assts fromacquiree’s, the differences should be recognized as goodwill. If the consoldiation cost less than the fair value amount of indentified net assts fromacquiree’s, the differences should reckoned into current gains/losses after re-examination.
6. Preparation methods for consolidated financial statements
(1) Preparation methods for consolidated financial statements
For the subsidiaries and special purpose entity whose actual control was held by the Company, included in the range of consolidate financial statement of the Company.
As theCompany’s financial statements are prepared pursuant to the Accounting Standards for Business Enterprises No. 33– Consolidated Financial Statements and relevant rules, all substantive inside transactions and dealings within the consolidation scope are balanced out during the consolidation. As for theshareholders’ equity not attributable to the Parent Company in the subsidiaries, it is specifically listed as the minorityshareholders’ equity in theshareholders’ equity.
As for the inconsistency between the subsidiaries and the Company in the accounting policies and periods, the necessary adjustment is made on thesubsidiaries’ financial statements in the preparation of the consolidated financial statements according to theCompany’s accounting policies and periods.
As for the subsidiaries obtained in the consolidation of enterprises not under the same control, the adjustment is made on the individual financial statements on the basis the fair value of the identifiable assets on the purchase day. As for the subsidiaries obtained under the same control, the consolidation is regarded as starting at the Year-beginning of the consolidation period, and the assets, liabilities, operation results and the cash flow are reckoned into the consolidated financial statements from the year-beginning in the consolidation period.
(2)Disclosing the relevant accounting methods on buying to selling or selling to buying of the equity in two successive fiscal year for same subsidiaries
7. Determination criteria of cash and cash equivalent
The cash recognized in the preparation of the cash flow statements, is theCompany’s storage cash and deposits available for payment anytime.
The cash equivalents recognized in the preparation of the cash flow statements refers to the investment held by the Company with characteristic of short-term, strong mobility, easy transfer to known sum cash and has slim risk from value changes.
8. Foreign currency exchange and the conversion of foreign currency statements
(1) Foreign currency exchange
The foreign currency exchange is booked on the current exchange rate on the transaction day and converted in the bookkeeping standard currency.
On the balance sheet day, the monetary items are converted on the current rate on the balance sheet day, concerning the exchange differences between teh spot exchange rate on that date and initial confirmation or the sport exchange rate on previously balance sheet date, should reckoned in to current gains/losses except the capitalizing on exchange differences for foreign specific loans, which was reckoned into cost for capitalizing.
The non-monetary items measured on the historic cost are still measured by the original bookkeeping rate with the
sum of the bookkeeping standard currency unchanged. Items of non-monetary foreign currency which was calculated by fair value, should converted by spot exchange rate on the confirmation day of fair value, difference between the converted amount of bookkeeping currency and original amount of bookkeeping currency, was treated as changes of fair value (including exchange rate changed) reckoned into current gains/losses or recognized as other consolidated income and reckoned into capital public reserve.
(2) Conversion of foreign currency financial statements
Upon the conversion of the foreign currency financial statements of the controlling subsidiaries, joint enterprises, and the affiliated enterprises on the bookkeeping standard currency different from theCompany’s, the accounting check and preparation of the consolidated financial statements are made.
Assets and liabilities items in the balance sheet, are converted on the current rate on the balance sheet day;owners’ equity items besides the “retained profit” item, the other items are converted on the actual rate. Incomes and expenses items in the profit statement are converted on the current rate. The conversion difference of the foreign currency financial statements is listed specifically in theowners’ equity in the balance sheet.
The foreign currency cash flow is converted on the current rate on the cash flow actual day. The cash influenced by the rate fluctuation is listed specifically in the cash flow statement.
As for the foreign operation, the conversion difference of the foreign currency statement related to the foreign operation is transferred in proportion into the disposal of the current loss/gain.
9. Financial instruments
(1) Categories of financial instruments
The financial instruments are classified as the financial assets and liabilities.
In the initial recognition, the financial assets are classified as, the financial assets measured on fair value and with its changes reckoned into the current loss/gain (including tradable ones and ones designated to be measured on fair value and with its changes reckoned into the current loss/gain), long-term invest-bonds, account receivables, and financial assets available for sale. Categories of the financial assets besides account receivables are dependent on the holding intention and purpose of the Company and its subsidiaries for the financial assets.
In the initial recognition, the financial liabilities are classified as the financial liabilities measured on the fair value and with its changes reckoned into the current loss/gain (including tradable ones and ones designated to be measured on fair value and with its changes reckoned into the current loss/gain), other financial liabilities. As the Company becomes one party of the financial instrument contract, the instrument is recognized as one financial asset or liability.
(2) Recognition and measurement of financial instruments
In the initial recognition, the financial assets or liabilities are measured on fair value; and the follow-up measurements are: financial assets and financial assets available for sale that measured by fair value and with alteration reckoned into current gains/losses together with teh financial liabilities that measured by fair value with alteration reckoned into current gains/losses should meausred by fair value; financial guarantee contract and loan committments, loan by the rates lower than market rates, should conducted follow-up measurement by the higher ones between confirmed amount recognized by “Accounting Standards for Business Enterprises No.13—Contingencies” after initial confirmation and balance of initial confirmed amount deducting the accumulated amortization amount, based on “Accounting Standards for Business EnterprisesNo.14—Revenue”; investment held to maturity, loans, account receivable and other financial liabilities should measured by amortized cost. The loss/gain from the fair value changes in the follow-up measurement of the financial assets and liabilities, besides one related to the hedge, is dealt with in the following methods:① The financial assets or liabilities measured on the fair value and with its changes reckoned into the current loss/gain, are reckoned into the fair value loss/gain; the interest or cash dividend obtained in the assets holding period, is recognized as the investment return; in disposal, the difference between the sum actually received and the one booked initially, is recognized as the investment return with the loss/gain of the fair value change adjusted.② The fair value change of the financial assets available for sale, is reckoned into the reserve; the interest on the actual rate in the holding period, is reckoned into the investment return; the cash dividend of the stock instrument available for sale is reckoned into the investment return when the invested unit announces to pay the dividend, is reckoned into the investment return; in dividend, the difference between the sum actually received and the book value in deduction of the accumulative fair value change originally booked into the capital reserve.
(3) Recognition basis and measurement method for the transfer of financial assets
TheCompany’s recognition basis of the financial assets transfer: As for the financial assets with all risks and compensations on their patent transferred, or all risks and compensations neither maintained nor transferred but the control over the assets given up, the recognition of the financial asset may terminate.
TheCompany’s measurement of the financial assets transfer: For the financial assets are qualified for the recognition of termination conditions, the measurement may be taken on the financial assets transfer, namely the difference is reckoned into the current loss/gain, between the book value of the transferred financial assets and, the total of the consideration value received from the transfer and the fair value change accumulative sum originally booked into the capital reserve.
As for the partly transfer of the financial assets qualified for the recognition termination conditions, the whole book value of the transferred financial assets is diluted on the respective relative fair value between the part of recognition termination and the part of no recognition termination, and the difference is reckoned into the current loss/gain, between the book value of the part of recognition termination and, the total of the consideration value of
the part of recognition termination and the fair value change accumulative sum originally booked into the capital reserve.
(4) Derecognizing conditions of the financial liabilities
TheCompany’s derecognizing conditions of the financial liabilities: For the current obligation of the financial liabilities is relieved whole or partly, the recognition of the financial liabilities or part may be terminated.
(5) Recognition methods of the fair values of the financial assets and liabilities
TheCompany’s recognition methods of the fair values of the financial assets and liabilities: as for the financial instrument in the active market, its fair value is recognized on the quotation in the active market; as for the financial instrument in the active market, its fair value is recognized by the evaluation method.
The evaluation method consists of as the references to the familiar situation and the price in the latest market transaction between the two voluntary parties, and the references to the current fair value of other substantially same financial assets, and the conversion method of the cash flow. In the evaluation method, the market index is the preferential and uttermost use, and the index specifically related to the Company and its subsidiaries is in less use.
(6) Impairment testing method and way of accrual for depreciation reserves for financial assets (account receivables excluded)
On the balance sheet day, the impairment check is taken on the book value of the financial assets besides the ones measured on fair value and with changes reckoned into the current loss/gain, and as there is objective evidence to the financial assets impairment, the impairment test may be taken on the financial assets, and the impairment provision is accrued according to the test result.
The Company exercise impairment test on financial assets with single major amount independently; for those financial assets with minor single amount, impairment test was exercised or performing test in combination of fianncial assets that with similar charateristic of credit risk. If no impairment found in independent test for those financial assets( including financial assets with single major and minor amount), consolidated into the combination of fianncial assets with similar charateristic of credit risk found for impairment testing again. If impairment found in those fianncial assets, then not going to consolidated into the combination of fianncial assets with similar charateristic of credit risk found for impairment testing.
If impairment found in held-to-maturity investment, loans and account receivable, calculated their book value to the current value of predicted future cash flow, the less reckoned amount was recognized as impairment losses and reckoned into curren gains/losses. If impairment found in financial assets available for sale, transfer-out the accumulated losses, reckoned into capital public reserve before, for fair value decreased, and reckoned into current gains/losses, the accumulated losses transfer-out was the balance of initial obtained cost deducting the principal received, amortized amount, current fair value and original impairment losses that reckoned into gains/losses.
Recognition standards for impairment of vary financial assets available for sale
(7) Explain the holding purpose and basis of changes in ability for those re-classified as financial assets available for sale from held-to-maturity investment whose terms have not matured
Main criterion of re-classification of the undue held-to-maturity investment as financial assets available for sale: 1) For there are no financial resources available for the continual capital support for the financial assets, the financial assets has to be due;
2) There is no intention for holding due in the management;
3) Due to the restrictions of the law and the executive rules, or other reasons, it is impossible for holding the financial assets due;
4) And other indications to theCompany’s incapability for holding due.
The re-classification of the undue held-to-maturity investment as financial assets available for sale needs to be decided by the approval from Board of Directors.
10. Recognition criteria and accrual method of bad debt provision for account receivable
The account receivables of the Company mainly consist of the bill receivable, long-term receivables and other account receivable. On the balance sheet day, if there is objective evidence to the actual impairment, the impairment loss is recognized on the difference between the book value and the current value of the estimative future cash flow.
(1) Bad debt provision for account receivables with single major amount
|||
|-|-|
||Account receivable with over one million Yuan(one|
|Criterion or amount standards of major single amount||
||million yean inclusive)|
||Recognized on the difference between the book|
|Withdrawal method for individual bad debt provision||
||value and the current value of the estimative future|
|accrual with major single amount concerned||
||cash flow|

(2) Account receivable with bad debt provision accrual by portfolio
||||
|-|-|-|
||Accrued method for bad||
|Portfolio|debt provision|Portfolio basis|
||withdrawal by portfolio||
|||Accounts with major single amount without withdrawal|
|Age portfolio|Aging of accounts||
|||bad debt provision singly|
|Age portfolio|Aging of accounts|Accounts without major single amount and major risks|

 Withdrawing bad bed provision by aging method in portfolio
√ Applicable□Not applicable
||||
|-|-|-|
|Account ages|Accrued proportion of accounts|Accrued proportion of other accounts|

||||
|-|-|-|
||receivable|receivable|
|Within six months|5.00%|5.00%|
|Six months to one year (one|||
||10.00%|10.00%|
|year inclusive)|||
|1－2 years|30.00%|30.00%|
|2－3years|50.00%|50.00%|
|Over three years|100.00%|100.00%|

 Withdrawing bad bed provision by percentage of total accounts receivable outstanding in portfolio
□Applicable√Not applicable
Withdrawing bad bed provision by other methods in portfolio
□Applicable√Not applicable
(3) Account receivable with minor single amount but has individual bad debt provision accrual
|||
|-|-|
|Reasons for individual bad debt|Account receivable with over three years in account age and has|
|prevision accrual|objective evidence of impairment appears|
|Accrued method for bad debt|Recognized on the difference between the book value and the current|
|provision|value of the estimative future cash flow|

11. Inventory
(1) Categories of inventory
The inventory is goods or manufactured products held for sale, products in process, and materials and matters utilized in the production or supply of labor. It mainly consists of the raw material, turnover material, consumable low-value product, product in process, self-made semi-finished product, and manufactured product (storage goods) etc.
(2) Accounting method for inventory delivery
Accounting method: weighted average
Recognized actual cost for the inventory while deliver by using weighted average method
(3) Recognition principle of net realizable value of inventory and accrual method for inventory falling price reserves
On the balance sheet day, the inventory is measured on the lower one between the cost and the net realizable value, and the provision for the falling price reserves is accrued on each inventory item; however, as for the inventory of large quantity and low price, the provision is accrued on the inventory category.
Recognition principle on net realizable value of inventory:① net realizable value as the estimative sale price less
the relevant tax expenses.② as for the materials held for production, if the net realizable value of the
manufactured product in use of the materials, is higher than the cost, the net realizable value is measured on cost;
as the fall-down of the material price shows that the net realizable value of the manufactured product is lower than the cost, recognizable value is recognized on the estimative sale price less the estimative will-be actual cost, estimative sale expenses, and relevant taxexpenses.③ As for the materials held on sale, the net realizable value is the market sale price.
(4) Inventory system
Inventory system: perpetual inventory system
Inventory system of the Company is perpetual inventory system
(5) Amortization method for the low-value consumables and wrap page
Low-value consumables
Amortization method: fifty percent(50%) amortization
Wrap page
Amortization method: fifty percent(50%) amortization
12. Long term equity investment
(1) Recognition of investment cost
① initial investment cost of long term equity investment obtained by corporate consolidation: in the case of the consolidation of enterprises under the same control, recognized as the initial cost is the book value of theowners’ equity obtained from the consolidated party; in the case of the consolidation of enterprises not under the same control, recognized as the initial cost is the recognized consolidation cost on the purchase day.② As for the long term equity investment obtained by cash payment, the initial investment cost is the actual purchase payment.③ As for the long term equity investment obtained by the equity securities offering, the initial investment cost is the fair value of the equity securities.④ As for the long term equity investment invested in by the investors, the initial investment cost is the value in the contract agreement.⑤ As for the long term equity investment obtained by the exchange of the non-monetary assets and the debts restructuring, the initial investment cost is recognized on the relevant rules in the Principles.
(2) Follow-up measurement and recognition of gains/losses
The follow-up measurement of the long term equity investment is on equity or cost. As for the long term equity investment on, the investment return is recognized on the share of the net gains/loses deserved or distributed; upon the calculation of the deserved share of the profit and cash dividend announced to be distributed, the book value of the long term equity investments decreased correspondingly. As for the long term equity investment on, the book value remains unchanged, besides the investment added or withdrawn. Upon the calculation of the deserved share of the profit or cash dividend announced to be distributed, the investment return is recognized.
As for the long term equity investment of common control and significant influence, it is checked on equity; and others are checked on cost.
(3) Recognition principle of being has common control and significant influence on the invested unit① Recognition principle on common control over invested units: the common control is agreed in the contract or agreement by the two or more joint parties that the accounting and operation policy must be decided commonly by the two or several investmentparties.② Recognition principle on the significant influence on invested unit: As above20% to50% vote capital is held in the invested unit, the significant influence is recognized; or as20%
below is held, the significant influence is recognized if the following conditions are matched up to:①there is representative in the investedunit’s board of directors or similar authority organs;②there is participation in the policy-making of the invested unit;③there is management person dispatch into the invested unit;④there is dependence on the investedcompany’s technology or technologic materials;⑤and other situations which can prove fully the significant influence on the invested unit
(4) Impairment test method and accrual method for impairment provision
On the balance sheet day, the check is taken on the long term equity investment to make sure whether there is the indication to the impairment; once there is, the impairment test is taken to recognize the recoverable, and then the provision for the impairment is accrued on the lower one between the book value and the recoverable; once the impairment loss is accrued, it may not be transferred in the future accounting periods.
As for the net fair value sold in the long-term stock investment, if there is the agreement price of the fair transaction, it is on the agreement price less the relevant tax expense; or there is no fair transaction agreement but the active market for similar assets, it is on the market price less relevant tax expense.
13. Investment real estate
(1) Category and measurement for investment real estate
Category of theCompany’s investment real estate: rented land use rights, rented buildings and land use rights held for transfer after appreciation.
Investment real estate of the Company is initially measured by cost and conducting follow-up measures by cost mode.
(2) Policy of the cost calculation mode
Accrued on the year averaging is the depreciation of the lease buildings in theCompany’s investment property. The detailed check principle is same as that of the fixed assets. The rented land use rights and land use rights held for transfer after appreciation owned by the Company was adopted line amortization method. Detail calculation policy was similar to intangible assets.
On balance sheet day, examing impairment evidence on investment real estate, if found evidence of impairement, than conducted impairment test and confirmed its recovered amount. Withdrawal impairment provision by lower amount between its book value and recovered amount, the impairment losses should be transfer-back in subsequent accounting period while been accrued.
14. Fixed assets
(1) Recognition of fixed assets
The fixed assets are tangible assets held for the goods production, labor supply, lease or operation& management, and with above one-accounting-year service life; meanwhile as up to the following conditions, they are recognized:①The economic interest related to the fixed assets probably flow into the Company;②The cost of the fixed
assets can be measured reliably.
(2) Recognized basis and valuation method for fixed assets that rent-in by financing
Recognized basis for fixed assets that rent-in by financing: rents that transfer all risks and remuneration relted to assets ownership actually. Detail recognition for follow one item or more item been qualified:① while the tenacy expired, ownership of the rented assets transfer to lessee;② lessee has the right of choice for purchasing rented assets, the purchased price setted was far lower than the fair value of rented assets that exercise option rights by prediction, the option rights was reaonably recognized on date of renting for lessee;③t hought no ownership transfer, rent period takes majority time of the useful life of rented assets;④ current value of the minimun rented amount payment on date of renting is almost equals to the fair value of rented assets on starting day of purchasing;⑤ rented assets owes special natures, lessee should not be used this rented asstes if no major changes on this assets. Valuation method for fixed assets that rent-in by financing: initial valuation for the fixed assets rent-in by financing was used the lower ones between faire value of rented assets on starting day of purchasing and minimum rented payment for bookkeeping value; Follow-up valuation for fixed assets that rent-in by financing was used the similar depreciation policies of self-owned fixed assets withdrawal depreciation and impairment provision.
(3) Depreciation method for vary fixed assets
TheCompany’s fixed assets are mainly divided as: house buildings, ships& machines& fishing equipment, furniture& office equipment, transportation equipment; the depreciation is in year averaging method. The service life and the net estimative remnant are recognized on the nature and utilization of the fixed assets; and at the year-end, the service life, net estimative remnant, and the depreciation method, of the fixed assets, are checked, and the corresponding adjustment is made if there is inconsistency between the checked ones and the previous ones. The depreciation of all of theCompany’s fixed assets is accrued, besides the ones sufficiently accrued and in continuous use, and the land booked specifically.
|||||
|-|-|-|-|
|Category|Depreciation life (year)|Salvage rate|Annual depreciation rate|
|House and building|20-40|3-5%|2-5%|
|Machine equipment|8-20|3-5%|5-12%|
|Electronic devices|5|3-5%|19-19%|
|Transportation equipment|5|3-5%|19-19%|
|Vessels|15-30|3-5%|3-6%|

(4) Impairment test method of fixed assets, and accrual method for provision of impairment
At balance sheet day, fixed assets have been examined by the Company whether there has evidence of impairment probably, while impairment evidence be found than impairment test shall be performed and recognized its recoverable amount. Take the lower one between the book value and recoverable amount for impairment provision withdrawal, the withdrawal impairment losses shall not be switch back in subsequent fiscal year.
The recoverable amount of fixed assets was recognized as the higher one between the net amount resuled from
faire value of assets minor disposal charges and current value of predicted future cash flows. If there exis sales
agrement price within fair transaction, net amount resulted from faire value of assets minor disposal charges should recognized as the amount resulted from sales agreement price minor disposal charge directly attributable to this asses; if exits no sales agrement price within fair transaction but exits active market or similar transaction price in assets, then recognized by the amount resulted from market price minor disposal charge.
(5) Other explanations
15. Project in progress
(1) Category of project in progress
TheCompany’s project in progress is divided as the self-support and contract-out construction.
(2) Principle and time for project in progress carried forward as fixed assets
The project in progress of the Company carried forward as fixed assets while the construction is ready for the intended use. Criteria of the expected condition for use should apply one of the follow conditions:① The substance construction (installation included) of the fixed assets has completed all or basically;② As the projects have been in test production or operation, and the results show that the assets can operate properly and produce the qualified products stably, or the test operation result shows the assets can operate or open properly.③ The expenditure of the fixed assets on the construction, is a little or little.④ The fixed assets of the project constructed have been up to the requirements of the design or contract, or basically up to.
(3) Impairment test method of project in progress, and accrual method for provision of impairment On the balance sheet day, the check is taken on the projects in progress for the indication to the impairment, and if there is the indication, the impairment test is taken to recognize the recoverable, and the impairment provision is accrued on the lower one between the book value and the recoverable; once the impairment loss is accrued, it cannot be transferred back in the future accounting periods.
The recoverable is recognized on the higher one between the net of the assets fair value less the disposal expenses, and the current value of the assets estimative future cash flow.
16. Borrowing expenses
(1) Recognition principle on capitalization of borrowing expenses
As for theCompany’s actual borrowing expenses directly attributable to the assets construction or production, it is capitalized and reckoned into the relevant assets cost; as for other borrowing expenses, it is recognized on the actual sum and reckoned into the current loss/gain. The assets up to the capitalization are assets as the capital assets, investment real estate, and inventory reaching the expectant availability or sale ability.
(2) Capitalization term
Capitalization term: the period from the time starts to capitalization to the time the capitalization ends. The period of capitalization suspended is not included.
(3) Terms for capitalization suspended
Terms for capitalization suspended: the capitalization of borrowing expenses should be suspended while the abnormal interrupt, which surpass three months continuously, in the middle of acquisition or construction or production.
(4) Calculation of capitalization for borrowing expenses
Calculation of capitalization amount:① As for the borrowing of the specific borrowing, the capitalization sum is recognized on the current actual interest expenses less the interest income of the borrowing capital not utilized but deposited in the bank or the return of the temporary investment;② As for the appropriation of the general borrowing, the capitalization sum is recognized on the weighted average of, the accumulative assets expenditure above the specific borrowing, and times the capitalization rate of the appropriation;③ As for the discount or premium of the borrowing, the discount or premium to be diluted in every accounting period is recognized in the actual rate method.
The effective interest method is the method for the measurement of the diluted discount or premium or interest expenses on the actual interest rate; and the actual interest rate is the interest rate used in the discount of the future cash flow in the expectant duration period as the current book value of the borrowing.
17. Intangible assets
(1) Accounting method for intangible assets
TheCompany’s intangible assets are measured initially on cost. The intangible assets purchased in are taken as the actual cost on the actual payment and relevant expenditure. As for the intangible assets invested in by the investors, the actual cost is recognized on the value stipulated in the contract or agreement; however, if what is stipulated in the contract or agreement is not fair value, the actual cost is recognized on fair value. As for the self-developed intangible assets, their cost is the actual total expenditure before reaching the expectant purpose. The follow-up measurements of theCompany’s intangible assets respectively are:①the line amortization method is taken on the intangible assets of finite service life, and at the yea-end, the check is taken on the service life and dilution of the intangible assets, and the corresponding adjustment is made if there is inconsistency with the previous estimative ones.② As for the intangible assets of uncertain service life, it is not diluted, however, the service life is checked at year-end; If there is solid evidence to its finite service life, its service life is estimated and diluted in straight line method.
(2) Estimation of service life of intangible assets of finite service life
As the service life of the intangible assets of finite service life is estimated, the following factors are considered usually:① the ordinary service life period of products produced by the assets, and the available information of the service life of the similar assets;② the present situation of the technology, craftsmanship, etc.③ the market demand for the products produced by the assets and the labor supply;④ the expectable actions taken by the present or potential competitor;⑤ expectant maintenance expenditure for theassets’ ability to bring forth the economic interest;⑥ relevant law rules or similar restrictions on control period of the assets;⑦ relevancy with the service life of other assets held by the Company.
||||
|-|-|-|
|Item|Expected service life|Basis|

(3) Recognition principle of intangible assets with uncertain service life
Recognized as the intangible assets of uncertain service life is refers to those intangible assets of un-expectable
period of economic benefits brought into the Company, or of the uncertain service period.
Recognition principle of uncertain service life:① from contract right or other legal rights, the uncertain service period is stipulated in the contract or law;② after the integration of the situations and relevant expertise argumentation in the same trade, the period of the economic interest brought into the Company by the intangible assets still cannot be recognized.
At every year-end, the check is taken on the intangible assets of uncertain service life, mainly in bottom-up way, namely the basic check is taken by the department relevant to the assets utilization, to assess whether there is change in the recognition principle of the uncertain service life.
(4) Accrual of impairment of intangible assets
On balance sheet day, the check is made on the intangible assets for the indication to the impairment; as there is the indication, the recoverable is recognized, and the impairment provision is accrued on the lower one between the book value and the recoverable; once the impairment loss is accrued, it may not be transferred back in later accounting periods.
The recoverable amount on intangible assets shall recognized as the higher one between the fair value of assets less net amount which have been disposal and current value of future predicted cash flow.
(5) Specific division standards of research stage and development stage for internalR&D project of the Company
(6) Calculation of the expenditure from internalR&D projects
18. Long-term deferred expenditure
TheCompany’s long-term deferred expenditure are expenses paid out and with one year above (1-year included) benefit period, mainly consisting of the house decoration expenses and the like. The long-term unamortized expenses are diluted by periods according to the benefit period. As the long-term unamortized expenses cannot enable the accountingperiod’s beneficiary, all dilution values of the project undiluted yet, are transferred into the current loss/gain.
19. Accrued liabilities
(1) Recognition principle of accrued liabilities
The obligation, which can be measured in a reliable way, will recognize as the accrued liabilities while the duty with contingency concerned is the current obligation for the Company, which may probably causes the outflow of economic interests in fulfillment.
(2) Measurement of accrued liabilities
The initial measurement is taken according to the best estimator of the expenditure necessary for the fulfillment of
the relevant current liabilities; if the necessary expenditure is of a continual scope and of a same chance of all results within the scope, the intermediate value is recognized as the best estimator; if several items are involved in, the best estimator is recognized according to all likely results and relevant possibilities.
On the balance sheet day, the check is taken on the book value of the accrued liabilities, and the adjustment is made on the book value according to the current best estimator if there is solid evidence to the inability of the book value for the true reflection to the current best estimator.
20. Share-based payment and equity instrument
(1) Category of share-based payment
Share-based payment refers to a transaction in which an enterprise grants equity instruments or undertakes equity-instrument-based liabilities in return for services from employee or other parties. The share-based payments shall consist of equity-settled share-based payments and cash-settled share-based payments.
(2) Recognition of fair value of the equity instrument
As there is the active market, it is recognized on the quotation in the active market;
As there is no active market, it is recognized by the rational evaluation technology including the reference to the price used in the latest market transaction between the parties familiar to situations and voluntary to the transaction, and the reference to the current value of other financial instruments substantially same, discount of cash flow and the option pricing model.
(3) Basis of optimum estimate for recognition of vesting equity instrument
(4) Relevant accounting treatment on implementation, modification and termination of the share-based payment plan
21. Revenue
(1) Recognition standards for revenue from goods sales
The Company shall ascertain the revenue incurred by selling goods in accordance with the received or receivable price stipulated in the contract or agreement signed between the enterprise and the buyer unless the following conditions are met simultaneously:① the significant risks and rewards of ownership of the goods have been transferred to the buyer by the enterprise;② the enterprise retains neither continuous management right that usually keeps relation with the ownership nor effective control over the sold goods;③the relevant amount of revenue can be measured in a reliable way;④ relevant economic benefits may flow into the enterprise and⑤ the relevant costs incurred or to be incurred can be measured in a reliable way. If the collection of the price as stipulated in the contract or agreement is delayed and if it has the financing nature, the revenue incurred by selling goods shall be ascertained in accordance with the fair value of the receivable price as stipulated in the contract or
agreement.
(2) Recognition basis of revenue from abalienating the right to use assets
The Company ascertains the revenue from abalienating of right to use assets while relevant economic interest may flow into and the revenue can be measured in a reliable way.
(3) Recognition basis of revenue from providing labor services
If an enterprise can, on the date of the balance sheet, reliably estimate the outcome of a transaction concerning the labor services it provides, it shall recognize the revenue from providing services employing the percentage-of-completion method. The enterprise can ascertain the schedule of completion (percentage-of-completion) under the transaction concerning the providing of labor services based on calculation of completed works, if an enterprise can not, on the date of the balance sheet, measure the result of a transaction concerning the providing of labor service in a reliable way, it shall be conducted in accordance with the following circumstances, respectively:①if the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall be recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried forward at the same amount;②if the cost of labor services incurred is not expected to compensate, the cost incurred should be included in the current profits and losses, and no revenue from the providing of labor services may be recognized.
(4) Recognition basis and method of schedule of the contracted project while ascertain the revenue from the providing of labor services by percentage-of-completion method and revenue from construction contract 22. Government subsidy
(1) Category
Government subsidies consist of the government subsidies pertinent to assets and government subsidies pertinent to income.
(2) Accounting method
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed within the useful lives of the relevant assets, and included in the current gains/losses; the government subsidies measured at their nominal amounts shall e directly included in the current gains/losses. The government subsidies pertinent to incomes shall be treated respectively in accordance with the circumstances as follows:①those subsidies used for compensating the related future expenses or losses of the enterprise shall be recognized as deferred income and shall included in the current gains/losses during the period when the relevant expenses are recognized;②those subsidies used for compensating the related expenses or losses incurred to the enterprise shall be directly included in the current gains/losses.
23. Deferred income tax asset and deferred income tax liability
(1) Recognition of deferred income tax asset
(1) Where there is difference between the carrying amount of the assets or liabilities and its tax base, (as for an item that has not been recognized as an asset or liability, if its tax base can be determined in light of the tax law, the tax base shall recognized as the difference) the deferred income tax and deferred income tax liabilities shall be determined according to the applicable tax rate in period of assets expected to recover or liability expected to pay
off. (2) The deferred income tax assets shall be recognized to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary difference. On balance sheet date, if there have concrete evidence of obtaining, in future period, enough taxable amounts to deduct the deductible temporary difference, the un-confirmed deferred income tax assts in previous accounting period shall be recognized. If there has no enough taxable amounts, obtained in future period, to deducted the deferred income tax assets, book value of the deferred income tax assets shall be kept in decreased. (3) the taxable temporary differences related to the investments of subsidiary companies and associated enterprises shall recognized as deferred income tax liability, unless the Company can control the time of the reverse of temporary differences and the temporary differences are unlikely to be reversed in the expected future. As for the deductible temporary difference related to the investment of the subsidiary companies and associated enterprises, deferred income tax assets shall be recognized while the temporary differences are likely to be reversed in the expected future and it is likely to acquire any amount of taxable income tax that may be used for making up the deductible temporary differences.
(2) Recognition of deferred income tax liability
24. Operating lease, financial leasing
(1) Accounting treatment of operating lease
If, essentially, the Leasing Terms and all risks and remuneration related with ownership of the leased assets are transfer to the lessee, the leasing will consider as financial leasing, other leasing beside that will consider as operating lease.
As a lessee, the Company rented office houses and pay the rent monthly, which was included in current expenses directly.
(2) Accounting treatment of financial leasing
(3) Accounting treatment of f leaseback
25. Assets held for sale
(1) Recognition criteria of assets held for sale
(2) Accounting treatment of assets held for sale
As for the fixed assets held for sale, the net estimative remnant of the capital assets may be adjusted for the reflection of the remnant to the sum of the fair value less the disposal expenses, without above the limit of the
previous book value of the capital assets as up to the conditions of holding assets on sale; And the difference of the previous book value above the net estimative remnant adjusted is reckoned into the current loss/gain.
As for the holding of other non-current assets on saleable, they are dealt with on the above principles; they consist of the single assets and the disposal group; the disposal group is a group of assets which is sold as a whole or disposed together.
26.Changes in accounting policies and estimates
Whether the accounting policies and estimates changed in reporting period or not
□Yes√No
Not applicable
(1) Changes in accounting policies
Whether the accounting policies changed in reporting period or not
□Yes√No
(2) Changes in accounting estimates
Whether the accounting estimates changed in reporting period or not
□Yes√No
27. Correction of previous errors
Whether the correction of previous errors been found in reporting period or not
□Yes√No
Not applicable
(1) Retrospective restatement
Whether adopted the retrospective restatement on previous errors correction in reporting period or not
□Yes√No
(2) Prospective application
Whether adopted the prospective application on previous errors correction in reporting period or not
□Yes√No
V. Taxes
1. Major tax and tax rate:
||||
|-|-|-|
|Taxes|Taxation basis|Tax rate|
||Output tax minor the deductible||
|VAT||17%, 13%|
||input tax||
|Business tax|Income from leasing|5%|
|Urban maintenance and construction tax|Turnover taxes payable|7%|
|Corporate income ax|Taxable amount|25%|
|Educational surtax|Turnover taxes payable|3%|
|Local educational surtax|Turnover taxes payable|2%|

Income tax rate implemented by vary branches and factories
2. Tax preference and approvals
(1) Preferential tax for VAT
Pursuant to the Treasury Tax (1997) No. 64 Notice on Taxation on Import of Fishery Equipment and Transport-back of Self-fished Fishery Products of Overseas Fishery Industry Corporation, the self-fished fishery products transported home, is regarded as the non-import domestic products, without taxation of tariff or added-value taxation in the import link. The corresponding domestic sales are attributable to the primary agricultural products sales, and free from added-value tax according to the specific rules of added value tax. (2) Preferential tax for income tax
Pursuant to rules of Treasury Tax[1994] No. 001<Notice on Several Preference Policies of Corporate IncomeTax>, Treasury Tax[1997] No. 114<Notice on Corporate Income Taxation on Fishing Business of Domestic FisheryCorporation>, Treasury Agriculture[2010] No. 104<Letter on Opinion on Relevant Problems of Quickening National OverseasFishery>, President Order ofPeople’s Republic of China[2007] No. 63< Corporate Income Tax Law ofPeople’s Republic ofChina>, theCompany’s income earns from the overseas fishing business and preliminary process of agricultural products are exempted from corporate income tax. TheCompany’s income besides one from the overseas fishing business and preliminary process of agricultural products will taxed on25% for the corporate income tax.
The subsidiary– Shandong Zhonglu Overseas (Yantai) Food Co.,Ltd—is a foreign investment corporation, is implemented the tax preference policies of “Two-free, Three-reduction” on according to the original<Law of
Income Tax of Foreign InvestmentCorporation>, but has not enjoyed the preference yet because of no profit,
according to the rules of tax preference policies in the transitory period of new<Corporate IncomeTax>, with the
preference period starting from 2008. Applicable tax rate for 2010 was22%,24% for 2011 and25% for 2012. The rate for corporate income tax of 2012 was executed by12.5% actually.
3. Others
VI. Corporate consolidation and consolidated financial statements
1. Subsidiaries
For the subsidiaries and special purpose entity whose actual control was held by the Company, included in the range of consolidate financial statement of the Company.
As theCompany’s financial statements are prepared pursuant to the Accounting Standards for Business Enterprises No. 33– Consolidated Financial Statements and relevant rules, all substantive inside transactions and dealings within the consolidation scope are balanced out during the consolidation. As for theshareholders’ equity not attributable to the Parent Company in the subsidiaries, it is specifically listed as the minorityshareholders’ equity in theshareholders’ equity.
As for the inconsistency between the subsidiaries and the Company in the accounting policies and periods, the necessary adjustment is made on thesubsidiaries’ financial statements in the preparation of the consolidated financial statements according to theCompany’s accounting policies and periods.
As for the subsidiaries obtained in the consolidation of enterprises not under the same control, the adjustment is made on the individual financial statements on the basis the fair value of the identifiable assets on the purchase day. As for the subsidiaries obtained under the same control, the consolidation is regarded as starting at the Year-beginning of the consolidation period, and the assets, liabilities, operation results and the cash flow are reckoned into the consolidated financial statements from the year-beginning in the consolidation period.
(1) Subsidiaries obtained from establishment or investment
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Balance|||||Amount|Balance|
||||||||of other|||||of|of|
||||||||items|||||minority|owners’|
|||||||Actual||||Whether|Interest|||
|Full|||||||substant|Shareho||||sharehol|equity|
||Type of|||Register||investm|||Voting|consolid|of|||
|name of||Register|Busines||Busines||ially|lding||||ders’|of|
||subsidia|||ed||ent at|||proporti|ated the|minority|||
|subsidia||place|s nature||s scope||consisti|proporti||||equity|parent|
||ry|||capital||period-e|||on|stateme|sharehol|||
|ry|||||||ng of|on||||for|compan|
|||||||nd||||nt or not|ders|||
||||||||net|||||deductin|y for|
||||||||investm|||||g|deductin|
||||||||ent in|||||loss/gai|g loss in|

||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||subsidia||||n|Period|
||||||||ry|||||diluted|
|||||||||||||by|
|||||||||||||minority|
|||||||||||||sharehol|
|||||||||||||ders of|
|||||||||||||subsidia|
|||||||||||||ry above|
|||||||||||||share|
|||||||||||||enjoyed|
|||||||||||||in|
|||||||||||||owners’|
|||||||||||||equity at|
|||||||||||||Period-b|
|||||||||||||eginnin|
|||||||||||||g|
||||||Internati||||||||
||||||onal||||||||
|Shando|||||ocean||||||||
|ng|||||shipping||||||||
|||Qingdao|Cold||||||||||
|Zhonglu|Limited||||, accept||||||||
|||,|storage,|22,505,||22,505,||100.00|100.00||||
|Fishery|compan||||for|||||Yes|||
|||Shando|transpor|600||600.00||%|%||||
|Shippin|y||||carriage||||||||
|||ng|tation||||||||||
|g Co.,|||||of||||||||
|Ltd.|||||frozen||||||||
||||||aquatic||||||||
||||||products||||||||
||||||Self-sup||||||||
||||||porting||||||||
|HabitatI|||Refriger||business||||||||
||Limited||||||||||||
|nternati|||ated|12,476,|of|12,476,||100.00|100.00||||
||compan|Panama||||||||Yes|||
|onalCor|||transpor|146|refrigera|146.00||%|%||||
||y||||||||||||
|poration|||t||ted||||||||
||||||transpor||||||||
||||||t||||||||
|Shando|||||Freeze,||||||||
|ng|||||cold||||||||
|Zhonglu|||||storage,||||||||
||Limited|Yantai ,|Food||||||||||
|Oceanic||||75,593,|process|75,593,||100.00|100.00||||
||compan|Shando|processi|||||||Yes|||
|(Yantai)||||300|and|300.00||%|%||||
||y|ng|ng||||||||||
|Foods|||||sales of||||||||
|Co.,|||||aquatic||||||||
|Ltd.|||||products||||||||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||, animal|||||||
||||||products|||||||
||||||and|||||||
||||||fruits|||||||
||||||and|||||||
||||||vegetabl|||||||
||||||es etc.|||||||
|Shando||||||||||||
||||||Offshor|||||||
|ng||||||||||||
|||Qingdao|||e|||||||
|Zhonglu|Limited|||||||||||
|||,|Ocean|54,000,|fishing,|54,000,||||25,223,|-581,22|
|Haiyan|compan||||||51.85%|51.85%|Yes|||
|||Shando|fishery|000|ocean-g|000.00||||707.64|6.86|
|Oceanic|y|||||||||||
|||ng|||oing|||||||
|Co.,||||||||||||
||||||fishing|||||||
|Ltd.||||||||||||

Other explanation on subsidiaries obtained through establishment or investments
(2) Subsidiary obtained through enterprise combination under the same control
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance|
||||||||||||||of|
||||||||||||||owners’|
||||||||||||||equity|
||||||||||||||of|
||||||||||||||parent|
||||||||||||||compan|
||||||||Balance||||||y for|
|||||||||||||Amount||
||||||||of other||||||deductin|
|||||||||||||of||
||||||||items||||||g loss in|
|||||||||||||minority||
||||||||substant||||||Period|
|||||||Actual||||Whether|Interest|sharehol||
|Full|||||||ially|Shareho|||||diluted|
||Type of|||Register||investm|||Voting|consolid|of|ders’||
|name of||Register|Busines||Busines||consisti|lding|||||by|
||subsidia|||ed||ent at|||proporti|ated the|minority|equity||
|subsidia||place|s nature||s scope||ng of|proporti|||||minority|
||ry|||capital||period-e|||on|stateme|sharehol|for||
|ry|||||||net|on|||||sharehol|
|||||||nd||||nt or not|ders|deductin||
||||||||investm||||||ders of|
|||||||||||||g||
||||||||ent in||||||subsidia|
|||||||||||||loss/gai||
||||||||subsidia||||||ry above|
|||||||||||||n||
||||||||ry||||||share|
||||||||||||||enjoyed|
||||||||||||||in|
||||||||||||||owners’|
||||||||||||||equity at|
||||||||||||||Period-b|
||||||||||||||eginnin|
||||||||||||||g|

Other explanation on subsidiaries obtained through enterprise combination under the same control
(3) Subsidiary obtained through enterprise combination under different control
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Actualinvestment atperiod-end|||||||Balance|
||||||||||||||of|
||||||||||||||owners’|
||||||||||||||equity|
||||||||||||||of|
||||||||||||||parent|
||||||||||||||compan|
||||||||Balance||||||y for|
|||||||||||||Amount||
||||||||of other||||||deductin|
|||||||||||||of||
||||||||items||||||g loss in|
|||||||||||||minority||
||||||||substant||||||Period|
|||||||||||Whether|Interests|sharehol||
|Full|||||||ially|Shareho|||||diluted|
||Type of|||Register|||||Voting|consolid|of|ders’||
|name of||Register|Busines||Busines||consisti|lding|||||by|
||subsidia|||ed|||||proporti|ated the|minority|equity||
|subsidia||place|s nature||s scope||ng of|proporti|||||minority|
||ry|||capital|||||on|stateme|sharehol|for||
|ry|||||||net|on|||||sharehol|
|||||||||||nt or not|ders|deductin||
||||||||investm||||||ders of|
|||||||||||||g||
||||||||ent in||||||subsidia|
|||||||||||||loss/gai||
||||||||subsidia||||||ry above|
|||||||||||||n||
||||||||ry||||||share|
||||||||||||||enjoyed|
||||||||||||||in|
||||||||||||||owners’|
||||||||||||||equity at|
||||||||||||||Period-b|
||||||||||||||eginnin|
||||||||||||||g|

 Other explanation on subsidiaries obtained through enterprise combination under different control
2. Operating entity with controlling rights emerge by way of entrust operation or lease from special purpose entity
In RMB
||||
|-|-|-|
||Major business dealing with|Balance of major assets and liabilities recognized in|
|Name|||
||Company|consolidated statement at Period-end|
|YAW ADDO FISHERIES||Balance of assets was RMB 8108121.07 while liabilities wasRMB 16762512.04|
||Lease management||
|COMPANY LIMITED|||

Other explanation on operating entity with controlling rights emerge by way of entrust operation or lease from special purpose entity
3. Conversion rate of main statement items of overseas operation entity
(1) Conversion method for statement of overseas subsidiary with foreign currency as bookkeeping standard currency
a. The balance item in the balance sheet is converted on the current rate on the balance sheet day; all equity items besides the “retained profit” item, all are converted on the actual rate.
b. The income and expense item in the profit statement are converted on the spot rate on the actual transaction day.
c. The conversion difference in the foreign currency financial start is listed specifically as “Converted difference in foreign currency” in theowners’ equity in the consolidated balance sheet in the preparation of the financial statement.
(2) Rate of conversion of foreign currency statement in Period
a. The spot exchange rate ofUS$ : RMB= 1: 6.1787 on the balance sheet day is used for the balance sheet item in the balance sheet.
b. The spot rate on the actual transaction day is used for the income and expense item in the profit statement. VII. Notes to main items in consolidated financial statement
1. Monetary fund
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Item|In foreign|Conversion||In foreign|Conversion||
||||In RMB|||In RMB|
||currency|rate||currency|rate||
|Cash:|--|--|576,588.70|--|--|605,694.05|
|RMB|--|--|301,351.86|--|--|287,971.83|
|USD|35,638.12|6.15|219,274.22|50,434.36|6.0969|307,493.25|
|GNF|389,200.00|0.01|4,866.32||||
|EUR|1,215.00|8.39|10,199.44|1,215.00|8.4189|10,228.97|
|GHC|19,940.82|2.05|40,896.86||||
|Bank deposit:|--|--|40,790,572.52|--|--|51,793,889.06|
|RMB|--|--|22,106,188.98|--|--|32,519,336.75|
||||||6.0969||
|USD|2,957,659.82|6.15|18,197,889.34|1,814,071.26||11,060,211.07|
|JPY|361,808.00|0.06|22,003.35|141,207,978.00|0.057771|8,157,726.10|
|GHC|198,908.99|2.05|407,944.98||||
|EUR|6,462.16|8.39|54,247.25|6,462.16|8.4189|54,404.26|
|SGD|462.09|4.97|2,298.62|462.90|4.7845|2,210.87|
|Other monetary fund:|--|--|967,122.20|--|--|1,536,142.55|
|RMB|--|--|967,122.20|--|--|1,536,142.55|
|Total|--|--|42,334,283.42|--|--|53,935,725.66|

Special statements should be given to the fund of using limitation, disposal aboard and potential risk recovery as mortgage, pledge or
freeze:
Note: closing balance of other monetary fund was RMB 967,122.20, of which LC margin was RMB 967,122.20
2. Account receivable
(1) Category of account receivable
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing amount||||Opening amount||||
|Category|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount|Proportion|
|Account receivable with bad debt provision accrual by portfolio|||||||||
||8,131,988.6||6,376,198.0||19,225,04||||
|Age portfolio||||||100.00%|6,398,394.90|33.28%|
||0||2||1.16||||
||8,131,988.6||6,376,198.0||19,225,04||||
|Subtotal||100.00%||78.41%||100.00%|6,398,394.90|33.28%|
||0||2||1.16||||
||8,131,988.6||6,376,198.0||19,225,04||||
|Total||--||--||--|6,398,394.90|--|
||0||2||1.16||||

Explanation on category of account receivable
Explanation on category of account receivable: Account receivable with major single amount refers to the accounts receivable from clients with over RMB one million (RMB one million included), the Company will withdrawal the bad debt provision by account age while no impairment been found in testing. Account receivable of bad debt provision withdrawal by portfolio refers to the account receivable with major single amount without withdrawal bad debt provision singly and the accounts without major single amount and major risks, the Company will withdrawal bad debt provision by account age while no impairment been found in testing.
Account receivable with major single amount and withdrawal bad debt provision single at period-end
□Applicable√Not applicable
Account receivable with bad debt provision withdrawal by method of account age in portfolio
√ Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Account age|Book balance|||Book balance|||
||||Bad debt provision|||Bad debt provision|
||Amount|Proportion||Amount|Proportion||
|Within one year|||||||
|Including:|--|--|--|--|--|--|
|Within six months|2,262,970.39|28.00%|633,179.95|13,247,895.70|68.91%|662,394.80|
|6 months to 1 year||||197,280.70|1.03%|19,728.07|
|Subtotal within one|||||||
||2,262,970.39|28.00%|633,179.95|13,445,176.40||682,122.87|
|year|||||||
|1-2 years|180,000.20|2.00%|54,000.06|90,846.75|0.47%|27,254.02|

||||||||
|-|-|-|-|-|-|-|
|Over three years|5,689,018.01|70.00%|5,689,018.01|5,689,018.01|29.59%|5,689,018.01|
|Total|8,131,988.60|--|6,376,198.02|19,225,041.16|--|6,398,394.90|

 Account receivable with bad debt provision withdrawal by method of percentage of balance in portfolio
□Applicable√Not applicable
Account receivable withdrawing bad bed provision by other methods in portfolio
□Applicable√Not applicable
Account receivable with minor single amount but has individual bad debt provision accrual at period-end
□Applicable√Not applicable
(2) Other account receivable switch-back or taken back in reporting period
In RMB
||||||
|-|-|-|-|-|
||||Amount of bad bed||
|||Determination basis for|||
||||provision accrual||
||Reason of switch back|original bad debt||Amount switch back or|
|Other account receivable|||accumulatively before||
||or take back|reserves||taken back|
||||switch-back or taken||
||||back||

Accrual of bad debt provision for other account receivable with major single amount or with minor amount but have impairment test independently at period
In RMB
||||||
|-|-|-|-|-|
|Account receivable|Book balance|Bad debt|Accrual proportion|Reasons|

 Explanation on other account receivable with minor single amount but have major risks after combined with risk characteristic of the credit
(3) Account receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
||||||Occurred due to|
|Name of the||||||
||Nature|Verification ime|Amount verified|Reasons|related transaction|
|company||||||
||||||(Y/N)|

 Explantion on account receivable written-off
(4) Account receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of the company||Bad debt amount||Bad debt amount|
||Book balance||Book balance||
|||accrual||accrual|

(5) Top five clients in account receivable
In RMB
||||||
|-|-|-|-|-|
|||||Proportion in total|
|Name|Relations with Company|Amount|Aging||
|||||account receivable|
|PANDA|Non-related party|3,600,962.12|Over three years|44.28%|
|Beijing Shotamuni Co.,|||||
||Non-related party|586,297.40|Within six months|7.21%|
|Ltd.|||||
|Cheng Niantao|Non-related party|436,807.37|Within six months|5.37%|
|Haifeng Company|Non-related party|430,625.10|Over three years|5.30%|
|Taiwan Xipu|Non-related party|364,600.00|Within six months|4.48%|
|Total|--|5,419,291.99|--|66.64%|

 (6) Account receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total account|
|Name of the company|Relationship with the Company|Amount||
||||receivables (%)|

 (7) Account receivables derecognized
In RMB
||||
|-|-|-|
|Item|De-recognition amount|Gains or losses related to derecognizing|

 (8) As for securities with account receivables as target subject, list the assets and liabilities arising from further involvement
In RMB
|||
|-|-|
|Item|Closing amount|
|Assets:||
|Liabilities:||

3. Other account receivable
(1) Category of other account receivable
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Category|||||
||Book balance|Bad debt provision|Book balance|Bad debt provision|

||||||||||
|-|-|-|-|-|-|-|-|-|
|||Proportio||Proportio||||Proportio|
||Amount||Amount||Amount|Proportion|Amount||
|||n||n||||n|
|Other receivable with|||||||||
|single significant amount|||||||||
||1,000,000.00|13.46%|||1,000,000.00|13.18%|||
|and withdrawal bad debt|||||||||
|provision separately|||||||||
|Other account receivable with bad debt provision accrual by portfolio|||||||||
|Age portfolio|6,428,677.43|86.54%|4,406,937.91|68.55%|6,586,535.93|86.82%|4,433,148.89|67.31%|
|Subtotal|6,428,677.43|86.54%|4,406,937.91|68.55%|6,586,535.93|86.82%|4,433,148.89|67.31%|
|Total|7,428,677.43|--|4,406,937.91|--|7,586,535.93|--|4,433,148.89|--|

 Explanation on category of other account receivable
Note: other account receivable with major single amount refers to the other accounts receivable with over RMB one million (RMB one million included), the Company will withdrawal the bad debt provision by account age while no impairment been found in testing. Other account receivable of bad debt provision withdrawal by portfolio refers to the other account receivable with major single amount without withdrawal bad debt provision singly and the accounts without major single amount and major risks, the Company will withdrawal bad debt provision by account age while no impairment been found in testing.
Other account receivable with major single amount and withdrawal bad debt provision single at period-end
√ Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Contents of other|||||
||Book balance|Bad debt amount|Provision proportion (%)|Reason|
|receivables|||||
|||||Refers to the crewassigning deposit paid togovernment and relateddepartments, the amounthas no risk of recoverywithout bad debt accrual|
|Shandong Marine Affairs|||||
||1,000,000.00||||
|Bureau|||||
|Total|1,000,000.00||--|--|

Other account receivable with bad debt provision withdrawal by method of account age in portfolio
√ Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|Account age|Closing amount|||Opening amount|||
||Book balance|||Book balance|||
||Amount|Proporti|Bad debt provision||Proporti|Bad debt provision|
|||||Amount|||
|||on|||on||
|Within one year|||||||
|Including:|||||||

||||||||
|-|-|-|-|-|-|-|
|Within six months|1,943,851.05|30.24%|92,396.94|2,033,068.26|26.81%|101,653.41|
|6 months to 1 year|43,953.06|0.68%|32,802.30|158,870.69|2.09%|15,887.07|
|Subtotal within one year|1,087,804.11|16.92%||2,191,938.95|33.28%|117,540.48|
|1-2years|1,041,270.00|16.20%|14,329.15|77,599.20|1.02%|23,279.76|
|2-3years|32,193.80|0.50%||49,338.26|0.62%|24,669.13|
|Over three years|4,267,409.52|66.38%|4,267,409.52|4,267,659.52|56.25%|4,267,659.52|
|Total|6,428,677.43|--|4,406,937.91|6,586,535.93|--|4,433,148.89|

 Other account receivable with bad debt provision withdrawal by method of percentage of balance in portfolio
□Applicable√Not applicable
Withdrawing bad bed provision by other methods in portfolio
□Applicable√Not applicable
Other account receivable with minor single amount but has individual bad debt provision accrual at period-end
□Applicable√Not applicable
(2) Other account receivable switch-back or taken back in reporting period
In RMB
||||||
|-|-|-|-|-|
|||Determination basis for|Amount of bad bed||
||||provision accrual||
||Reason of switch bac|k original bad debt||Amount switch back or|
|Other account receivable|||accumulatively before||
||or take back|reserves||taken back|
||||switch-back or taken||
||||back||

Accrual of bad debt provision for other account receivable with major single amount or with minor amount but have impairment test independently at period
In RMB
||||||
|-|-|-|-|-|
|Account receivable|Book balance|Bad debt|Accrual proportion|Reasons|

 Explanation on other receivable with single minor amount while the risks of the group categorized with similar risk characteristics are relative significant:
(3) Other receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of other|||Reason for|Arising from related|
|||Time of write-off|Amount written off|||
|company|receivables|||write-off|transactions (Y/N)|

 Explanation on write-off of other receivables:
(4) Other receivables due from the shareholders holding5% or above voting shares of the Company during
the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of the company||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrual||accrual|

 (5) Nature or content of other receivables with significant amount
In RMB
|||||
|-|-|-|-|
|||Nature or content ofaccount||
|Name of the company|Amount||Proportion in total other receivables|

Explanation:
(6) Top five clients in other account receivable
In RMB
||||||
|-|-|-|-|-|
|||||Proportion in total other|
|Name|Relations with Company|Amount|Aging||
|||||account receivable|
|Shandong Marine Affairs|||||
||Non-related|1,000,000.00|1-2 years|13.00%|
|Bureau|||||
|Japan Daihatsu|Non-related|288,896.39|Over three years|4.00%|
|Board wages for crew|Business|242,953.98|Within six months|3.00%|
|Wende Ship Repair|||||
||Non-related|200,000.00|Over three years|3.00%|
|Company|||||
|Qingdao Xiujian|||||
||Non-related|195,044.00|Over three years|3.00%|
|Installation Company|||||
|||||3.00%|
|Total|--|1,926,894.37|--|29.00%|

 (7) Other receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total other|
|Name of the company|Relationship with the Company|Amount||
||||receivables|

(8) Other receivables derecognized
In RMB
||||
|-|-|-|
|Item|De-recognition amount|Gains or losses related to de-recognition|

(9) As for securities with other receivables as target subject, list the assets and liabilities arising from further involvement
In RMB
|||
|-|-|
|Item|Closing amount|
|Assets:||
|Liabilities:||

(10) Government subsidy recognized by amount receivable at end of period
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Name of thecompany|||||||Reasons of fails to|
||Item of|||Time to|Amount|||
|||Closing|Age of|||Basis for|collected amount in|
||government|||collected|estimated to|||
|||balance|period-end|||obtained|estimated time (if|
||subsidy|||estimated|obtained|||
||||||||applicable)|

 4. Prepayments
(1) Prepayments listed by account age
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Account age|||||
||Amount|Proportion|Amount|Proportion|
|Within one|||||
||26,033,272.96|99.89%|12,998,531.47|99.40%|
|year|||||
|1-2years|27,868.49|0.11%|31,402.27|0.24%|
|2-3years|||47,013.26|0.36%|
|Total|26,061,141.45|--|13,076,947.00|--|

 Explanation on account age of prepayment
The closing balance of prepayment increased 99.29 compare with opening balance, mainly due to the prepayment of tuna raw materials purchased by Yantai Foods Company and the common-of-piscary paid in advance by Qingdao Haiwei Branch
(2) Top five clients in prepayment
In RMB
||||||
|-|-|-|-|-|
|Name|Relations with Company|Amount|Aging|Un-settled reasons|
|Common-of-piscary in|||||
||Non-related party|3,758,520.02|Within one year||
|Papua New Guine|||||
|Penglai Jingyuan Food|||||
||Non-related party|3,388,360.00|Within one year||
|Co., Ltd.|||||

||||||
|-|-|-|-|-|
|Penglai Jinglu Fishery|||||
||Non-related party|2,614,388.00|Within one year||
|Co., Ltd.|||||
|Common-of-piscary in|||||
||Non-related party|2,441,554.48|Within one year||
|Nauru|||||
|Common-of-piscary in|||||
||Non-related party|2,247,084.00|Within one year||
|Micronesia|||||
|Total|--|14,449,906.50|--|--|

Explanation on clients of prepayment
(3) Shareholders holding5% or above voting shares of the Company in prepayments during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of the company||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrual||accrual|

 (4) Explanation on prepayment
5. Inventory
(1) Category of inventory
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Item||Provision for|||Provision for||
||Book balance||Book value|Book balance||Book value|
|||price fall-down|||price fall-down||
|Raw materials|79,265,172.57|51,082.91|79,214,089.66|79,061,155.40|51,082.91|79,010,072.49|
|Inventory|147,714,240.37|8,296,687.24|139,417,553.13|171,034,803.44|29,789,106.90|141,245,696.54|
|Low value|||||||
||664,242.46||664,242.46|756,001.87||756,001.87|
|consumable|||||||
|Packaging|51,994.24||51,994.24|638,481.60||638,481.60|
|Total|227,695,649.64|8,347,770.15|219,347,879.49|251,490,442.31|29,840,189.81|221,650,252.50|

 (2) Provision for price fall-down
In RMB
|||||||
|-|-|-|-|-|-|
|||Accrual in this|Decreased in this period Decrease in|||
||Opening book|||||
|Items||period Accrual in|Period||Closing book balance|
||balance|||||
|||Period|Switch back|Written-off||

|||||
|-|-|-|-|
|Raw materials|51,082.91||51,082.91|
|Inventory|29,789,106.90|21,492,419.66|8,296,687.24|
|Total|29,840,189.81|21,492,419.66|8,347,770.15|

 (3) Provision for price fall-down of inventory
|||||
|-|-|-|-|
||||Ratio of amount switch back in|
||Accrual basis of provision for|Reasons of provision for price||
|Item|||Period in closing balance of the|
||price fall-down|fall-down switch back in Period||
||||inventory|

Explanation on inventory
In reporting period, the Company seized the opportunity of stable soaring price in ultra cool long lines tuna precisely, sell out majority of the stock at end of last period decidedly, and written-off 21,492,419.66 Yuan the inventory falling price reserves that withdrawal last period
6. Other current assets
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Financing products||7,000,000.00|
|Total||7,000,000.00|

 Explanation on other current assets
Other current assets 7 million Yuan refers to the financing products “Golden Years” from CMBC, the product purchased on 10 December 2013 and expired on 15 January 2014, and has redeemed on due date
7. Long term equity investment
(1) Long term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanati||||
|||||||||on on||||
|||||||||||Accrual||
|||||||Sharehold||inconsiste||||
||||||||Voting|||of||
|||||||ing||ncy in|Provision|||
|||||Increase/|||proportio|||provision|Cash|
|Invested|Calculatio|Investme|Opening||Closing|proportio||proportio|for|||
|||||decrease|||n in|||for|dividend|
|company|n method|nt cost|balance||balance|n in||n between|depreciati|||
|||||change|||invested|||impairme|in Period|
|||||||invested||the|on|||
||||||||company|||nt in||
|||||||company||sharehold||||
|||||||||||Period||
|||||||||ing and||||
|||||||||voting||||
|South|Cost|33,000,00|33,000,00||33,000,00||||33,000,00|||
|||||||0.87%|0.87%|||||
|Securities|method|0.00|0.00||0.00||||0.00|||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Co., Ltd.|||||||||
|||33,000,00|33,000,00|33,000,00||||33,000,00|
|Total|--||||--|--|--||
|||0.00|0.00|0.00||||0.00|

(2) Condition of restriction in aspect of transferring capital to investment enterprises
In RMB
||||
|-|-|-|
|Projects of long term equity investment|||
|||Amount of investment loss un-confirmed|
|that restricted in capital transfer to|Restricted reasons||
|||accumulative in this period|
|investment enterprises|||

Explanation on long term equity investment
Concerning South Securities Co., Ltd. had been canceled the license for securities business and charged to close down as the administrative punishment by the CSRC on 29 April 2005, it was announced to be bankrupt by Shenzhen Intermediate Court, and the proportion for the impairment of the long-term investment has been accrued on the book value in full sum on the stock in the South Securities Company.
IntermediatePeople’s Court of Shenzhen, Guangzhou, issued a civil ruling paper ((2006) Shen Zhong Fa Min Qi Zi No.: 26-246) dated 17 December 2012 as: “1. terminated the bankruptcy procedure of South Securities Co., Ltd.; 2. Retain part of the members of bankruptcy liquidation group for the liquidation. The ruling will come into force as of today.” The civil ruling paper states that “distribution ratio of the bankruptcy assets from bankruptcy case of South Securities reached to64%”
8. Investment real estate
(1) Investment real estate measure on cost
In RMB
||||||
|-|-|-|-|-|
|Item|Opening book balance|Increase in Period|Decrease in Period|Closing book balance|
|I. Total original book|||||
||47,120,794.80|||47,120,794.80|
|value|||||
|1. House, building|47,120,794.80|||47,120,794.80|
|II. Total accumulative|||||
|depreciation and|10,239,894.00|609,332.76||10,849,226.76|
|amortization|||||
|1. House, building|10,239,894.00|609,332.76||10,849,226.76|
|III. Total net book|||||
|value of investment|36,880,900.80|-609,332.76||36,271,568.04|
|real estate|||||
|1. House, building|36,880,900.80|-609,332.76||36,271,568.04|
|IV. Total accumulative|886,512.06|||886,512.06|

|||||
|-|-|-|-|
|provision for||||
|investment real estate||||
|provision||||
|1. House, building|886,512.06||886,512.06|
|V. Total book value of||||
||35,994,388.74|-609,332.76|35,385,055.98|
|investment real estate||||
|1. House, building|35,994,388.74|-609,332.76|35,385,055.98|

 In RMB
|||
|-|-|
||Current|
|Amount of depreciation and amortization in Period|609,332.76|

 (2) Investment real estate measure on fair value
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase in Period|||Decrease in Period|||
||||Transfer-in||Disposal|||
|||||Gains/losses||||
||Opening fair||from|||Transfer as|Closing fair|
|Item||||||||
|||||from||||
||value|Purchased|self-used|||self-used|value|
|||||changes of||||
||||property or|||property||
|||||fair value||||
||||inventory|||||

Explain the investment real estate with measurement mode changed in reporting period and investment real estate without a property certificate required. Explain the reasons on un-settle certificate and time expected to completed
In accordance with the “Civil Ruling Paper” (2005) Li Zhi Zi No.: 1299 fromPeople’s Court of Lixia District, Jinan in July 2006, the comprehensive buildings owned by Shandong Group Corp. of Fisheries Enterprises (totally 7430 M2 including 1/B, 1/F to 3/F and 6/F to 13/F as well as land use right of 1847M2) locates in No. 43, Heping Rd., Lixia District, Jinan City along with the offices supplies are compensate for the arrears to Shandong Zhonglu Oceanic Fisheries Co., Ltd. As RMB 55,129,673.57 (relevant notice was published on Securities Times and Hong Kong Wen Wei Po dated 25 July 2006). The aforesaid lands belongs to the allocated lands without constuction planning permit and has no property certificate hold. The Company still coordinate with local government in aspect of the property certificates currently.
9. Fixed assets
(1) Fixed assets
In RMB
||||||
|-|-|-|-|-|
||Opening book|||Closing book|
|Item||Increase in Period|Decrease in Period||
||balance|||balance|
|I. Total original book value:|537,557,642.41|3,301,974.66|1,324,924.01|539,534,693.06|
|Including: House and|||||
||73,782,609.11|||73,782,609.11|
|building|||||

|||||||
|-|-|-|-|-|-|
|Machine equipment|28,965,251.71|3,102,730.80||735,193.53|31,332,788.98|
|Transportation||||||
||6,313,597.59|45,443.97||571,850.52|5,787,191.04|
|vehicle||||||
|Vessels|419,107,794.05|94,276.85||3,784.23|419,198,286.67|
|Furniture and office||||||
||9,388,389.95|59,523.04||14,095.73|9,433,817.26|
|appliances||||||
||Opening book|Increase in||||
|--|||Accrual in Period|Decrease in Period|Closing balance|
||balance|Period||||
|II. Total accumulative||||||
||147,990,038.86||13,039,039.06|909,295.12|160,119,782.80|
|depreciation||||||
|Including: House and||||||
||14,318,968.70||1,018,285.86||15,337,254.56|
|building||||||
|Machine equipment|10,368,460.86||1,525,549.06|350,352.32|11,543,657.60|
|Transportation||||||
||3,475,913.21||390,225.21|546,256.64|3,319,881.78|
|vehicle||||||
|Vessels|112,773,103.80||9,903,960.64||122,677,064.44|
|Furniture and office||||||
||7,053,592.29||201,018.29|12,686.16|7,241,924.42|
|appliances||||||
||Opening book|||||
|--||--|||Closing balance|
||balance|||||
|III. Total net book value of||||||
||389,567,603.55|--|||379,414,910.26|
|fixed assets||||||
|Including: House and||||||
||59,463,640.41|--|||59,463,640.41|
|building||||||
|Machine equipment|18,596,790.85|--|||18,596,790.85|
|Transportation||||||
||2,837,684.38|--|||2,837,684.38|
|vehicle||||||
|Vessels|298,763,110.25|--|||306,334,690.25|
|Furniture and office||||||
||2,334,797.66|--|||2,334,797.66|
|appliances||||||
|IV. Total provision for||||||
||7,571,580.00|--|||7,571,580.00|
|depreciation||||||
|Vessels|7,571,580.00|--|||7,571,580.00|
|Furniture and office||||||
|||--||||
|appliances||||||
|V. Total book value of fixed|381,996,023.55||||371,843,330.26|
|||--||||
|assets||||||
|Including: House and|59,463,640.41|--|||58,445,354.55|

|||||
|-|-|-|-|
|building||||
|Machine equipment|18,596,790.85|--|19,789,131.38|
|Transportation||||
||2,837,684.38|--|2,467,309.26|
|vehicle||||
|Vessels|298,763,110.25|--|288,949,642.23|
|Furniture and office||||
||2,334,797.66|--|2,191,892.84|
|appliances||||

Total RMB 12,129,743.94 depreciated in this period; RMB 0.00 was transfer to fixed assets from project in progress in this period (2) Temporary idle fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Depreciation|Impairment|||
|Item|Original book value|||Net book value|Note|
|||accumulative|provision|||

(3) Fixed assets leasing-in by financing lease
In RMB
|||||
|-|-|-|-|
|Item|Original book value|Depreciation accumulative|Net book value|

 (4) Fixed assets leasing-out by operational lease
In RMB
|||
|-|-|
|Types|Closing book value|

(5) Fixed assets held for sale in period-end
In RMB
||||||
|-|-|-|-|-|
||||Disposal expense||
|Item|Book value|Fair value||Disposal date predicted|
||||predicted||

(6) Fixed assets without property certificate obtained
||||
|-|-|-|
|Item|Reasons for certificate un-settled|Time expected to completed the certificate|

 Explanation on fixed assets
1. Fixed assets increased RMB 3,301,974.66 in Period, mainly because machine equipment was purchased by Yantai Foods Company.
2. Pledge of fixed assets: In order to obtained the comprehensive credit line of RMB 27 million, the production-used house with original value of RMB 22,651,704.00, and land use right of 33,333.30 M2 were pledge by subsidiary Zhonglu Oceanic (Yantai) Foods Co., Ltd. RMB 18,858,210.07 short-term borrowing has received.
3. In accordance with the “Civil Ruling Paper” (2005) Li Zhi Zi No.: 1299 fromPeople’s Court of Lixia District, Jinan in July 2006, the comprehensive buildings owned by Shandong Group Corp. of Fisheries Enterprises (totally 7430 M2 including 1/B, 1/F to 3/F and 6/F to 13/F as well as land use right of 1847M2) locates in No. 43, Heping Rd., Lixia District, Jinan City along with the offices
supplies are compensate for the arrears to Shandong Zhonglu Oceanic Fisheries Co., Ltd. As RMB 55,129,673.57 (relevant notice
was published on Securities Times and Hong Kong Wen Wei Po dated 25 July 2006). The aforesaid lands belongs to the allocated
lands without constuction planning permit and has no property certificate hold. The Company still coordinate with local government
in aspect of the property certificates currently.
10. Project in progress
(1) Project in progress
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Item||Provision for|||Provision for||
||Book balance||Book value|Book balance||Book value|
|||depreciation|||depreciation||
|Xinmaofeng (new ship)|3,184,538.43||3,184,538.43||||
|Taihong 6|5,663,515.79||5,663,515.79||||
|No.58 Fuyangwan||||503,686.68||503,686.68|
|Total|8,848,054.22||8,848,054.22|503,686.68||503,686.68|

 (2) Changes of major project in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Accumul|||||
|||||||Proportio|||Includin||||
|||||||||ative|||||
|||||||n of|||g:||||
|||||Transfer|Other|||amount|||||
|||Opening|Increase|||project|Work||interest|Capitaliz|Capital|Closing|
|Item|Budget|||to fixed|decreasi|||of|||||
|||amount|in Period|||investme|progress||capitaliz|ing rate|resources|amount|
|||||assets|ng|||interest|||||
|||||||nt in|||ation in||||
|||||||||capitaliz|||||
|||||||budget|||Period||||
|||||||||ation|||||
||30,000,0||3,184,53||||||||||
|Xinmaof|||||||||||||
||00.00||8.43||||||||||
|eng|||||||||||||
||7,600,00|503,687.|5,159,82||||||||||
|Taihong|||||||||||||
||0.00|00|9.00||||||||||
|6|||||||||||||
||37,600,0|503,687.|8,344,36||||||||||
|Total||||||--|--|||--|--||
||00.00|00|7.43||||||||||

Explanation on changes of project in progress
1. Wholly-owned subsidiary of the Company HABITAT INTERNATIONAL CORPORATION plans to purchased a second-hand transport ship,US$ 495,000 earnest money had been paid;
2. Subsidiary of the Company Shandong Zhonglu Haiyan Oceanic Co., Ltd. newly purchased a second-hand tuna long liner, the ship is in process of renovation, managing relevant certificate, and will set sail recently.
(3) Impairment provision of construction in process
In RMB
|||||||
|-|-|-|-|-|-|
|||Increase during the|Decrease during this|||
|Item|Opening amount|||Closing amount|Accrual Reason|
|||period|period|||

(4) Progress of material construction in progress
||||
|-|-|-|
|Item|progress|Note|

(5) Explanation on construction in process
11. Intangible assets
(1) Intangible assets
In RMB
||||||
|-|-|-|-|-|
|Item|Opening book balance|Increase in Period|Decrease in Period|Closing book balance|
|I. Total original book value|10,094,529.00|||10,094,529.00|
|Land use right of Yantai|||||
||9,929,529.00|||9,929,529.00|
|Foods|||||
|Other|165,000.00|||165,000.00|
|II. Total amount of|||||
||3,126,110.24|122,008.50||3,248,118.74|
|accumulated amortization|||||
|Land use right of Yantai|||||
||2,978,853.44|118,208.52||3,097,061.96|
|Foods|||||
|Other|147,256.80|3,799.98||151,056.78|
|III. Total net book value of|||||
||6,968,418.76|-122,008.50||6,846,410.26|
|intangible assets|||||
|Land use right of Yantai|||||
||6,950,675.56|-118,208.52||6,832,467.04|
|Foods|||||
|Other|17,743.20|-3,799.98||13,943.22|
|Land use right of Yantai|||||
|Foods|||||
|Other|||||
|Total book value of|6,968,418.76|||6,846,410.26|
|||-122,008.50|||
|intangible assets|||||
|Land use right of Yantai|||||
||6,950,675.56|-118,208.52||6,832,467.04|
|Foods|||||
|Other|17,743.20|-3,799.98||13,943.22|

RMB 122,008.50 amortized in Period
(2) Expenditure of project development
In RMB
|||||||
|-|-|-|-|-|-|
||||Decrease during this period|||
|||Increase during the||||
|Item|Opening amount||Record into current|Confirm as intangible|Closing amount|
|||period||||
||||gains and losses|assets||

The proportion of development expenditure of total expenditure inR&D projects in reporting period
The proportion of intangible assets form by internalR&D in total book value of intangible assets at period-end
For development projects, including single price over one million Yuan occurred in this period and the assessment price have been kept in book, disclosed the assessment institution and way of assessment:
12. Long-term deferred expenditure
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amortized in|||Reasons of other|
|Item|Opening amount|Increase in Period||Other decreased|Closing amount||
||||Period|||decreased|
||40,889.00||||40,889.00||
|Total|40,889.00||||40,889.00|--|

 Explanation on long-term deferred expenditure
The Improvement expenditure (decoration costs) of rent-in fixed assets from Shandong Zhonglu Fishery Shipping Co., Ltd., amortized in 3 years after construction completed.
13. Deferred income tax asset and deferred income tax liability
(1) Amount of deferred income tax asset and deferred income tax liability before trade-off
Deferred income tax asset and deferred income tax liability ascertained
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Deferred income tax asset:|||
|Impairment of assets|171,707.51|171,707.51|
|Subtotal|171,707.51|171,707.51|
|Deferred income tax liability:|||

Deferred income tax asset without confirmed
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|

Deductible losses of deferred income tax asset without confirmed will expired in later year
In RMB
|||||
|-|-|-|-|
|Year|Closing amount|Opening amount|Note|

Taxable difference and deductible difference
In RMB
||||
|-|-|-|
||Amount of temporary differences||
|Item|||
||Period-end|Period-begin|
|Taxable difference|||
|Deductible difference|||

(2) Amount of deferred income tax asset and deferred income tax liability after trade-off
Composition of deferred income tax asset and liabilities after trade-off
In RMB
||||||
|-|-|-|-|-|
|||Deductible or taxable||Deductible or taxable|
||Deferred income tax||Deferred income tax||
|||temporary||temporary|
||asset or liability after||asset or liability after||
|Item||differences after||differences after|
||trade-off at||trade-off at||
|||trade-off at||trade-off at period-|
||period-end||period-begin||
|||period-end||begin|
|Deferred income tax asset|171,707.51||171,707.51||

Trade-off between the deferred income tax asset and deferred income tax liability
In RMB
|||
|-|-|
|Item|Amount trade-off in Period|

Explanation on deferred income tax asset and deferred income tax liability
14. Impairment of assets
In RMB
|||||||
|-|-|-|-|-|-|
||Opening book||Decrease in Period||Closing book|
|Item||Increase in Period||||
||balance||Switch-back|Written-off|balance|
|I. Bad debt provision|10,831,543.79||||10,831,543.79|
|II. Provision for price|29,840,189.81|||21,492,419.66|8,347,770.15|
|fall-down of inventory||||||
|V. Provision for depreciation|||||33,000,000.00|
|of long term equity|33,000,000.00|||||
|investment||||||
|VI. Provision for depreciation|886,512.06||||886,512.06|
|of investment real estate||||||
|VII. Provision for|7,571,580.00||||7,571,580.00|
|depreciation of fixed assets||||||
|Total|82,129,825.66|||21,492,419.66|60,637,406.00|

Explanation on provision for depreciation of assets
15. Short-term borrowing
(1) Short-term borrowing
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Mortgage loan|18,858,210.07|21,607,961.51|
|Credit loan|10,400,000.00||
|Total|29,258,210.07|21,607,961.51|

 Explanation on category of short-term borrowing
In order to obtained the comprehensive credit line of RMB 27 million, the production-used house with original value of RMB 22,651,704.00, and land use right of 33,333.30 M2 were pledge by subsidiary Zhonglu Oceanic (Yantai) Foods Co., Ltd. RMB 18,858,210.07 short-term borrowing has received. On 19 May 2014, the Company entered into a Loan Contract with Jinan Lixia sub-branch of ICBC for RMB 10.40 million borrowed with term of 6 months.
(2) Short-term loans un-paid by expired
In RMB
|||||||
|-|-|-|-|-|-|
|Unit|Loan amount|Loan rates|Using in|Reasons of un-paid|Predicted payment date|

 Amount paid after balance sheet date.
Explanation on short-term loans: for those expired short-term loans obtained expansion period, explain the expansion condition and new expiration:
16. Account payable
(1) Account payable
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Within one year|59,391,968.06|71,759,047.93|
|1-2 years|||
|2-3 years|||
|Over three years|4,258,033.37|4,253,594.84|
|Total|63,650,001.43|76,012,642.77|

 (2)Accounts payable to shareholders holding5% or above voting shares of the Company
In RMB
||||
|-|-|-|
|Name of the company|Closing amount|Opening amount|

(3) Explanation on major account payable over one year
17. Account received in advance
(1) Account received in advance
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Within 1 year|402,929.57|11,796,951.28|
|1-2 years|||
|2-3 years|||
|Over three years|349,863.72|349,863.72|
|Total|752,793.29|12,146,815.00|

 (2)Accounts received in advance to shareholders holding5% or above voting shares of the Company In RMB
||||
|-|-|-|
|Name of the company|Closing amount|Opening amount|

(3) Explanation on major account received in advance with over one year age:
18. Salary payable
In RMB
||||||
|-|-|-|-|-|
|Item|Opening book balance|Increase in Period|Decrease in Period|Closing book balance|
|I. Salary, bonus,|||||
|allowance and|14,391,510.83|34,200,034.00|36,929,405.84|11,662,138.99|
|subsidy|||||
|II. Employee|||||
|||1,484,902.57|1,413,653.15|71,249.42|
|Welfare expenses|||||
|III. Social insurance||4,629,931.37|4,629,931.37||
|Including: Medical|||||
|||1,363,564.90|1,363,564.90||
|insurance|||||
|Basic pension|||||
|||2,745,345.27|2,745,345.27||
|insurance|||||
|Unemployment|||||
|||154,013.41|154,013.41||
|insurance|||||
|Injury insurance||161,010.87|161,010.87||
|Maternity insurance||156,823.72|156,823.72||
|IV. Housing|||||
||37,421.98|1,188,456.18|1,050,642.92|175,235.24|
|accumulation fund|||||

||||||
|-|-|-|-|-|
|V. Dismissal welfare||40,000.00|40,000.00||
|VI. Other|1,095,809.79|363,191.18|406,414.81|1,052,586.16|
|Total|15,524,742.60|41,906,515.30|44,470,048.09|12,961,209.81|

 RMB 0.00 was defaulted in salary payable
Fund of labor union and education was RMB 406,414.81, non-monetary welfare was RMB 0.00, and compensation due to labor relationship terminated was RMB 40,000.00.
The wages payable expected to pay and the amount for payment:
19. Tax payable
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|VAT|-6,919,687.06|-11,784,115.02|
|Business tax|3,006.25|65,548.07|
|Corporate income tax|-88,480.55|-4,360.17|
|Individual income tax|73,213.45|190,551.71|
|Urban maintenance and construction tax|376.25|4,938.01|
|House property tax|210,945.46|154,310.33|
|Land use tax|82,750.00|82,750.00|
|Educational surtax|257.13|2,116.29|
|Other|28,587.98|37,922.22|
|Total|-6,609,031.09|-11,250,338.56|

 Taxes payable, that the tax authorities agreed to the branch companies, subsidiaries of taxable income between mutual dispensing, and shall explain tax calculation process:
20. Interest payable
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Installment and interest due repayment of principal|||
|||67,211.91|
|long-term loan interest|||
|Short-term borrowing interest payable||115,653.14|
|Total||182,865.05|

 Explanation on interest payable
21. Dividends payable
In RMB
|||||
|-|-|-|-|
|Name|Closing amount|Opening amount|Reasons for unpaid over one year|
|Luyin Investment Group Co., Ltd.|45,109.80|45,109.80||
|Shandong Airlines Co., Ltd.|32,110.00|32,110.00||
|CNHTC Jinan Truck Co., Ltd.|350,000.00|350,000.00||
|Shandong Detai Decorating Co., Ltd.|32,110.00|32,110.00||
|Total|459,329.80|459,329.80|--|

Explanation on dividends payable
22. Other account payable
(1) Other account payable
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Within one year|2,326,178.54|3,327,906.70|
|1-2 years|95,416.96|19,943.40|
|2-3 years|257,873.70|3,125,621.09|
|Over three years|4,672,203.26|923,892.10|
|Total|7,351,672.46|7,397,363.29|

 (2) Others payable due to shareholders units holding over5%(5% included) voting shares of the Company at period-end
In RMB
||||
|-|-|-|
|Name of the company|Closing amount|Opening amount|

(3) Explanation on other account payable with over one year age
(4) Explanation on unit of major connected amount for other account payable
23. Non-current liabilities due within one year
(1) Non-current liabilities due within one year
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Long-term loans due within one year|10,038,164.53|18,162,141.05|
|Total|10,038,164.53|18,162,141.05|

 (2) Long-term loans due within one year
Long-term loans due within one year
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Credit loan|10,038,164.53|18,162,141.05|
|Total|10,038,164.53|18,162,141.05|

 Amount of RMB 0.00 was extended due to overdue in long-term loans due within one year
Top five long-term loans due within one year
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Closing amount||Opening amount||
||Loans dated||||||||
|Company||Loans ended|Currency|Rate|In foreign||In foreigncurrency||
||from|||||In RMB||In RMB|
||||||currency||||
|Jinan Lixia|||||||||
|||||||||18,162,141.0|
|Branch of|2012-10-31|2015-10-30|RMB|7.07%||9,597,777.78|||
|||||||||5|
|ICBC|||||||||
||||||||--|18,162,141.0|
|Total|--|--|--|--|--|9,597,777.78|||
|||||||||5|

 Overdue loans in long-term loans due within one year
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Reasons for|Expected|
|Company|Amount loans|Overdue time|Annual rate|Purpose of loans|||
||||||overdue|payment date|

 Amount RMB 4,798,888.89 was paid after balance sheet date
Explanation on long-term loans due within one year:
Note: On 11 June 2012, the Company entered into a loan agreement with Jinan Lixia Branch of ICBC for loan of RMB 58,000,000.00. The loan terms from 31 October 2012 to 30 October 2015, RMB 34,640,000.00 was drawing in the Period actually. The principal RMB 9,597,777.78 paid in 2014 was listed under the item of “Non-current liabilities due within one year”. Other non-current liability roll in– Constuction special fund RMB 419,104.68, other non-current liability roll in– fiscal ship-building discount RMB 21,282.07.
(3) Bond payable due within one year
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Interest|||Interest||
|||||||Interest|Interest paid|||
|||||Issuing|payable at|||payable in|Balance at|
|Name|Value|Issuing date|Terms|||payable in|in this|||
|||||amount|period-begi|||this|period-end|
|||||||this period|period|||
||||||n|||period-end||

Explanation on bond payable due within one year:
(4) Long-term account payable due within one year
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Amount at||
|Unit|Terms|Initial amount|Rate|Interest reckoned||Loan condition|
||||||period-end||

Explanation on long-term account payable due within one year:
24. Long-term loans
(1) Long-term loans
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Credit loan|17,246,666.66|17,246,666.66|
|Total|17,246,666.66|17,246,666.66|

 Explanation on long-term loans
1. On 11 June 2012, the Company entered into a loans agreement with Jinan Lixia Branch of ICBC for borrowing RMB 58,000,000.00 dated from 31 October 2012 to 30 October 2015. Actually RMB 34,640,000.00 loans were withdrawal in the Period. The principal of loans RMB 7,697,777.78 payable was listed under the “Non-current liabilities due within one year”
2. On 3 April 2013, the Company entered into a loans agreement with Jinan Lixia Branch of ICBC for borrowing RMB 10,000,000.00 dated from 8 April 2013 to 1 April 2016. And actually RMB 7,600,000.00 loans were withdrawal in the Period. (2) Top five long-term loans
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Closing amount||Opening amount||
||Loans dated||||||||
|Company||Loans ended|Currency|Rate|In foreign||In foreign||
||from|||||In RMB||In RMB|
||||||currency||currency||
|Jinan Lixia|||||||||
|Branch of|2012-10-31|2015-10-30|RMB|7.07%||9,646,666.66||9,646,666.66|
|ICBC|||||||||
|Jinan Lixia|||||||||
|Branch of|2013-04-08|2016-04-01|RMB|6.77%||7,600,000.00||7,600,000.00|
|ICBC|||||||||
||||--||||||
|||||||17,246,666.6||17,246,666.6|
|Total|--|--|--|--|--||--||
|||||||6||6|

 Explanation on long-term loans: explain the condition of extension, principal, interest and arrangement for payment for those long-term loans merge from overdue loans which were extended.
25. Other non-current liability
In RMB
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|
|Construction special funds|12,382,410.48|12,382,410.48|

||||
|-|-|-|
|Fiscal ship-building discount|789,800.57|789,800.57|
|Total|13,172,211.05|13,172,211.05|

 Explanation on other non-current liability
Note 1. In accordance with the notice of construction special funds plans as 2nd RMB 800 million “Two districts” of 2011 and 2nd of 2011 Shandong peninsula blue economic development districts and Yellow River Delta Efficient Ecological Economic Districts, that is Yan Fa Gai Tou Zi[2011] No. 464 issued from Yantai Development and Reform Commission and Yantai Municipal Finance Bureau, the Company obtained construction special funds with assets concerned RMB 6,800,000.00 in reporting period in 2012 and in 2013 respectively.
Note2. In accordance with the notice of 2013 budget index of fiscal discount fund for provincial deep-sea fishing enterprises Lu Cai Nong Zhi[2013] No.32 printed and issued by Office of Shandong Fianncial Department dated 25 June 2013, the Company received a finacnial discount RMB 830,000.00 for year of 2013
Item of liability with government subsidy concerned
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount reckoned||||
|||Subsidy|||||
||||into non-operation||Closing|Assets-related/|
|Item|Opening balance|increase during||Other changes|||
||||revenue in the||balance|Income-related|
|||this period|||||
||||Period||||

26. Share capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changes in the Period (+,-)||||||
||Opening|||Shares transfer|||Closing|
|||Issuing new||||||
||amount||Bonus shares|from public|Other|Subtotal|amount|
|||shares||||||
|||||reserves||||
|Total shares|266,071,320.00||||||266,071,320.00|

 Explanation on changes of share capital. Name of CPA, who has verified the capital, and verification report serial shall be disclosed while the capital was increased or decreased in the reporting period; as for the incorporated company operated within three years, net assets of the year before establishment should be explained; if the limited liability company change to incorporated company totally, the verification while establishment shall be explained
27. Capital surplus
In RMB
||||||
|-|-|-|-|-|
|Item|Opening amount|Increase in Period|Decrease in Period|Closing amount|
|Capital premium (equity|||||
||186,283,711.00|||186,283,711.00|
|premium)|||||
|Other Capital surplus|94,961,504.96|||94,961,504.96|
|Total|281,245,215.96|||281,245,215.96|

Explanation on capital surplus
28. Surplus reserve
In RMB
||||||
|-|-|-|-|-|
|Item|Opening amount|Increase in Period|Decrease in Period|Closing amount|
|Statutory Surplus reserve|21,908,064.19|||21,908,064.19|
|Total|21,908,064.19|||21,908,064.19|

 Explanation on surplus reserve: explain relevant reference while there have equity increased from surplus reserves, make-up losses and dividend distribution
29. Retained profit
In RMB
||||
|-|-|-|
|||Proportion of withdrawal or|
|Item|Amount||
|||distribution|
|Retained profit of year-begin after adjustment|-28,432,075.99|--|
|Add: Net profit attribute to owners of parent|||
||1,306,809.14|--|
|company|||
|Retained profit at period-end|-27,125,266.85|--|

Adjustment of retained profit at year-begin:
1) Retained profit RMB 0.00 at beginning of the year was affected by the retroactive adjustment regulated in rules and Accounting Standards for Business Enterprise;
2) Retained profit RMB 0.00 at beginning of the year was affected by the changes of accounting policy;
3) Retained profit RMB 0.00 at beginning of the year was affected by the major correction on accounting errors;
4) Retained profit RMB 0.00 at beginning of the year was affected by the consolidation scope changed under the same control; 5) Retained profit RMB 0.00 at beginning of the year was affected by the total other adjustment
Explanation on retained profit: As for the enterprises initial public offering the securities, if the accumulated profits before offering are been approved to be share by new and old shareholders in theshareholders’ general meeting, the explanation shall be state; if the accumulated profit before offering are been approved to be share by old shareholders only before offering in theshareholders’ general meting, the audit profit in dividend payables that should be share by the old shareholders shall be disclosed.
30. Operating revenue, operating cost
(1) Operating revenue, operating cost
In RMB
||||
|-|-|-|
|Item|Current amount|Amount of the period before|
|Main operating revenue|255,542,481.66|260,988,876.37|
|Other revenue|4,474,102.95|3,739,483.85|

||||
|-|-|-|
|Operating cost Operating cost|239,126,034.18|219,741,407.76|

 (2) Main business (by industries)
In RMB
||||||
|-|-|-|-|-|
||Current amount||Amount of the period before||
|Industries|||||
||Operating revenue|Operating cost|Operating revenue|Operating cost|
|Oceanic fishing and re-processing|122,918,154.00|127,290,438.93|74,020,865.36|51,153,852.24|
|Management and rental of|||||
||39,292,689.17|29,690,426.42|39,743,558.52|30,632,659.79|
|refrigerated transport vessels|||||
|Seafood processing, cold storage|||||
||93,331,638.49|81,231,958.09|147,224,452.49|137,175,578.42|
|and other|||||
|Total|255,542,481.66|238,212,823.44|260,988,876.37|218,962,090.45|

 (3) Main business (by products)
In RMB
||||||
|-|-|-|-|-|
||Current amount||Amount of the period before||
|Products|||||
||Operating revenue|Operating cost|Operating revenue|Operating cost|
|Tuna|122,918,154.00|127,290,438.93|74,020,865.36|51,153,852.24|
|Leasing and management of|||||
||39,292,689.17|29,690,426.42|39,743,558.52|30,632,659.79|
|refrigerated transport ship|||||
|Seafood processing, cold storage|||||
||93,331,638.49|81,231,958.09|147,224,452.49|137,175,578.42|
|charge|||||
|Total|255,542,481.66|238,212,823.44|260,988,876.37|218,962,090.45|

 (4) Main business (regions)
In RMB
||||||
|-|-|-|-|-|
||Current amount||Amount of the period before||
|Regions|||||
||Operating revenue|Operating cost|Operating revenue|Operating cost|
|Mainland China|50,764,857.38|51,956,256.59|70,125,569.27|61,224,936.88|
|Taiwan China|63,946,569.19|52,764,811.56|73,341,550.52|48,151,686.19|
|Japan|73,068,011.07|69,203,366.99|75,549,131.86|70,464,321.21|
|Singapore|14,845,442.29|14,171,390.55|7,679,886.56|7,162,994.20|
|Ghana|6,698,425.81|6,560,238.17|5,922,454.23|5,497,321.11|
|South Korea|31,322,760.73|29,666,066.92|16,789,253.61|15,659,258.16|
|Other|14,896,415.19|13,890,692.66|11,581,030.32|10,801,572.70|

||||||
|-|-|-|-|-|
|Total|255,542,481.66|238,212,823.44|260,988,876.37|218,962,090.45|

 (5) Top five clients in operating revenue
In RMB
||||
|-|-|-|
|Clients|Revenue from main business|Proportion in total operating revenue of the Company|
|No.1 Taiwan Fengqun Company|63,946,569.19|49.00%|
|No.2 Japan Beishui|22,619,759.03|17.00%|
|No.3 South Korea Haitian|22,370,381.69|17.00%|
|No.4 Japan Weike|13,469,741.61|11.00%|
|No.5 Singapore Chuncheng|7,643,749.19|6.00%|
|Total|130,050,200.71|100.00%|

 Explanation on operating revenue
31. Business tax and surcharge
In RMB
|||||
|-|-|-|-|
|||Amount of the period||
|Item|Current amount||Taxation basis|
|||before||
|Business tax|65,412.51|360,209.02|3% or 5% of the rental income|
|Urban maintenance and construction||||
||85,573.82|24,918.01|7% of amount of turnover tax paid|
|tax||||
||||4% or 5% of amount of turnover tax|
|Educational surtax|61,112.52|17,798.59||
||||paid|
|House property tax|154,500.00|132,465.47|House area|
|Other|25,432.11|17,798.21||
|Total|392,030.96|553,189.30|--|

Explanation on business tax and surcharge
32. Sales expenses
In RMB
||||
|-|-|-|
|Item|Current amount|Amount of the period before|
|Payroll payable|489,983.40|430,724.97|
|Depreciation cost|18,786.08|16,777.50|
|Travelling charge|165,979.96|140,057.56|
|Freight and miscellaneous charges|381,004.75|456,934.13|
|Port surcharge|983,277.01|915,375.64|

||||
|-|-|-|
|Post and communication charge|25,033.27|12,447.43|
|Agency fee|8,997.50|55,585.71|
|Business publicity expenses|25,055.00|18,800.00|
|Customs censoring charges|21,041.94|104,201.39|
|Other|19,455.57|11,400.00|
|Total|2,138,614.48|2,162,304.33|

 33. Administrative expenses
In RMB
||||
|-|-|-|
|Item|Current amount|Amount of the period before|
|Payroll payable|11,285,018.16|8,108,131.68|
|Travelling charge|435,241.76|402,232.49|
|Entertainment expenses|435,390.78|787,815.99|
|Office allowance|145,930.58|215,231.09|
|Depreciation cost|680,995.85|762,431.65|
|Repair charge|59,974.36|86,168.10|
|Conference expenses|41,463.00|39,284.50|
|Amortization of low-value consumption|6,758.50|12,638.00|
|Personnel education fund|165,683.04|127,930.88|
|Expenses-type taxes|513,233.53|420,288.64|
|Agency fee(auditing, attorney, assessment|||
||742,962.80|625,473.70|
|and consult fees)|||
|Vehicles charge (operating expenses)|321,127.20|286,423.18|
|Disclosure expenses|194,763.34|190,000.00|
|Utilities|222,890.80|94,442.82|
|Amortization of intangible assets|122,008.50|134,855.22|
|Post and communication charge|154,444.13|177,610.57|
|Expenses of labor protection appliance|5,829.00|151,758.30|
|Abroad charges|259,802.86|138,547.40|
|Publicity expenses|28,945.00|99,900.00|
|Leasing expenses|433,664.33|485,387.17|
|Premium|91,959.95|119,286.95|
|Other|229,290.66|255,852.92|
|Total|16,577,378.13|13,721,691.25|

34. Financial expenses
In RMB
||||
|-|-|-|
|Item|Current amount|Amount of the period before|
|Interest costs|1,529,736.37|2,122,987.11|
|Interest income|133,915.91|3,503,459.03|
|Exchange loss|519,064.60|1,856,838.69|
|Exchange gains|967,018.35|567,204.26|
|Other expense|143,843.83|335,232.11|
|Total|1,091,710.54|244,394.62|

 35. Asset impairment losses
In RMB
||||
|-|-|-|
|Item|Current amount|Amount of the period before|
|I. Bad debt losses||-4,266,486.00|
|II. Inventory falling price loss||32,367,450.35|
|Total||28,100,964.35|

 36. Non-operating revenue
(1) Non-operating revenue
In RMB
|||||
|-|-|-|-|
||||Amount reckoned in current|
|Item|Current amount|Amount of the period before||
||||non-recurring gains/losses|
|Total income from disposal of non-current|20,183.21|||
|||1,474,592.70|20,183.21|
|assets||||
|Including: income from disposal of fixed|20,183.21|||
|||1,474,592.70|20,183.21|
|assets||||
|Government subsidies|426,198.74||426,198.74|
|Other|32,200.00|46,408.22|32,200.00|
|Total|478,581.95|1,521,000.92|478,581.95|

 Statement of non-operating revenue
(2) Government subsidy reckoned into current gains/losses
In RMB
||||||
|-|-|-|-|-|
|Item|Amount of this period|Amount of last period|Assets-related/income-rel|Non-recurring|

|||||
|-|-|-|-|
|||ated|gains/losses (Y/N)|
|Fuel subsidy||Income-related|N|
|Finance discount|7,094.00|Assets-related|Y|
|Construction subsidy of||||
||419,104.74|Assets-related|Y|
|Blue Economic Zone||||
|Total|426,198.74|--|--|

37. Non-operating expenditure
In RMB
|||||
|-|-|-|-|
||||Amount reckoned in|
|||Amount of the period||
|Item|Current amount||current non-recurring|
|||before||
||||gains/losses|
|Total income from disposal of non-current assets|291,933.45|383,366.53|291,933.45|
|Including: losses from disposal of fixed assets|291,933.45|383,366.53|291,933.45|
|Foreign donations|1,000.00||1,000.00|
|Other|6,624.00||6,624.00|
|Total|299,557.45|383,366.53|299,557.45|

 Explanation on non-operating expenditure
Losses from disposal of fixed assets mainly due to the expenditure RMB 291,933.45 used facilities sort out
38. Income tax expenses
In RMB
||||
|-|-|-|
|Item|Current amount|Amount of the period before|
|Current income taxes that calculated based on taxation laws|||
||144,258.54|28,100.00|
|and relevant regulations|||
|Total|144,258.54|28,100.00|

 39. Calculation of basic Earnings per share (EPS) and diluted Earnings per share (EPS)
|||
|-|-|
|Code|Current amount|
|P0|1,306,809.14|
|P0|1,127,784.64|
|S0|266,071,320.00|
|S1||

|||
|-|-|
|Code|Current amount|
|Si||
|Sj||
|Sk||
|M0|6|
|Mi||
|Mj||
|S|266,071,320.00|
||0.005|
||0.004|
|P1|1,306,809.14|
|P1|1,127,784.64|
||266,071,320.00|
||0.005|
||0.004|

 40. Other consolidated income
In RMB
||||
|-|-|-|
|Item|Current amount|Amount of the period before|
|4. Translation differences of foreign financial sheet|-6,201.08|624,046.25|
|Subtotal|-6,201.08|624,046.25|
|Total|-6,201.08|624,046.25|

 Explanation on other consolidated income
41. Notes of cash flow statement
(1) Other cash received related to operating activities
In RMB
|||
|-|-|
|Item|Amount|
|Interest income|134,566.40|
|Current account|8,347,477.55|
|Other|345,023.02|
|Total|8,827,066.97|

 Explanation on other cash received related to operating activities
(2) Other cash paid related to operating activities
In RMB
|||
|-|-|
|Item|Amount|
|Current account paid|2,569,014.93|
|Sales expenses paid in cash|1,775,906.26|
|Administrative expenses paid in cash|12,193,990.72|
|Other paid in cash|3,007,105.50|
|Total|19,546,017.41|

 Explanation on other cash paid related to operating activities
(3) Other cash received related to investment activities
In RMB
|||
|-|-|
|Item|Amount|

Explanation on other cash received related to investment activities
(4) Other cash paid related to investment activities
In RMB
|||
|-|-|
|Item|Amount|

Explanation on other cash paid related to investment activities
(5) Other cash received related to financing activities
In RMB
|||
|-|-|
|Item|Amount|

Explanation on other cash received related to financing activities
(6) Other cash paid related to financing activities
In RMB
|||
|-|-|
|Item|Amount|

Explanation on other cash paid related to financing activities
42. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB
||||
|-|-|-|
|Supplementary information|Current Amount|Amount of the Previous Period|
|1. Reconciliation of net profit to cash flows from operating|||
||--|--|
|activities:|||
|Net profit|725,582.28|1,313,943.00|
|Add: Provision for impairment of assets|-21,492,419.66|28,100,964.35|
|Depreciation of fixed assets, oil assets and productive|||
||13,281,060.26|11,686,603.28|
|biological assets|||
|Amortization of intangible assets|122,008.50|134,855.22|
|Losses on disposal of fixed assets, intangible assets and|||
||272,933.45|383,366.53|
|other long-term assets (income is listed with “- ”)|||
|Losses on scrapping of fixed assets(income is listed with|||
||-1,548.60|-1,474,592.70|
|“- ”)|||
|Financial expenses(income is listed with “- ”)|1,235,657.97|2,122,987.11|
|Decrease in inventories(increase is listed with “-”)|26,242,704.59|-76,106,350.93|
|Decrease in operating receivables(increase is listed with|||
||16,731,116.39|-15,494,978.46|
|“-”)|||
|Increase in operating payables(decrease is listed with “- ”)|-35,230,698.91|28,418,105.39|
|Other|-164,466.90||
|Net cash flows arising from operating activities|1,721,929.37|-20,915,097.21|
|2. Significant investing and financing activities that do not|||
||--|--|
|involve cash receipts and payments|||
|3. Net changes in cash and cash equivalents|--|--|
|Cash at the end of the year|42,334,283.42|49,253,990.22|
|Less: Cash at the beginning of the period|53,935,725.66|28,287,601.46|
|Net increase in cash and cash equivalents|-11,601,442.24|20,966,388.76|

(2) Relevant information about obtaining/disposal of subsidiary and other business unit in report period In RMB
||||
|-|-|-|
|Supplementary information|Amount of this period|Amount of last period|
|I. Relevant information about obtaining subsidiary and|||
||--|--|
|other business units:|||
|II. Relevant information about disposal of subsidiary and|||
||--|--|
|other business units:|||

(3) Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|I. Cash|42,334,283.42|53,935,725.66|
|Including: Cash on hand|576,588.70|605,694.05|
|Bank deposit paid at any time|40,790,572.52|51,793,889.06|
|Other monetary funds paid at any time|967,122.20||
|III. Cash and cash equivalents a period-end|42,334,283.42|53,935,725.66|

 Explanation on supplementary information of cash flow statement
VIII. Related parties and related transaction
1. Parent company of the enterprise
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Shareholdi|Voting|||
||||||||ng|right|||
||||||||||Ultimate|Code of|
||Related|||Legal|||proportion|proportion|||
|Parent||Type of|Register||Business|Registered|||controller|organizati|
||relationshi|||representat|||of parent|of parent|||
|company||enterprise|place||nature|capital|||of the|on|
||p|||ive|||company|company|||
||||||||||Company|institution|
||||||||in the|in the|||
||||||||Company|Company|||
||||||Investment||||||
||||||and||||||
|Shandong|||||manageme||||Shandong||
|State-owne|Controllin||||nt,||||State-owne||
|||State-owne|||||||||
|d Assets|g||Jinan|Li|manageme|160000000|||d Assets|16307316-|
|||d|||||||||
|Investment|shareholde||Shandong|Guangqing|nt and|0|||Investment|7|
|||enterprise|||||||||
|Holdings|r||||operation||||Holdings||
|Co., Ltd.|||||of assets,||||Co., Ltd.||
||||||managed||||||
||||||operations,||||||

||
|-|
|investment|
|advisory|

Explanation on parent company of the enterprise
2. Subsidiary of the enterprise
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Full name||||Legal|||||Code of|
||Type of|Type of|Register||Business|Registered|Shareholdin|Voting||
|of||||representati|||||organization|
||subsidiary|enterprise|place||nature|capital|g proportion|proportion||
|subsidiary||||ve|||||institution|
|Shandong||||||||||
|Zhonglu||||||||||
||Controlling|Limited|Qingdao||Refrigerated|22,5056,00.||||
|Fishery||||Wang Huan|||100.00%|100.00%|163071233|
||subsidiary|company|Shandong||transport|00||||
|Shipping||||||||||
|Co., Ltd.||||||||||
|HabitatInter||||||||||
||Controlling|Limited|||Refrigerated|12476146.0||||
|nationalCor|||Panama|Li Wenyi|||100.00%|100.00%||
||subsidiary|company|||transport|0||||
|poration||||||||||
|Shandong||||||||||
|Zhonglu||||||||||
|Oceanic|Controlling|Limited|Yantai||Food|75593300.0||||
|||||Li Ming|||100.00%|100.00%|729277389|
|(Yantai)|subsidiary|company|Shandong||processing|0||||
|Foods Co.,||||||||||
|Ltd.||||||||||
|Shandong||||||||||
|Zhonglu||||||||||
||Controlling|Limited|Qingdao|Chi|Ocean|54000000.0||||
|Haiyan|||||||51.85%|51.85%|05341864-6|
||subsidiary|company|Shandong|Weizhen|fishery|0||||
|Oceanic||||||||||
|Co., Ltd.||||||||||

3. Other related party of the Company
||||
|-|-|-|
|Other related party|Relations with Company|Organization code|
|Luxin Investment Holding Company|||
||Shareholders with over 5% shares held|73577367-X|
|Limited|||

Explanation on other related party of the Company
4. Account receivable/payable of related parties
Account receivable from related party
In RMB
|||||
|-|-|-|-|
|Item|Related party|Period-end|Period-begin|

|||||||
|-|-|-|-|-|-|
|||Book balance|Bad debt provision|Book balance|Bad debt provision|
||Shandong Zhonglu|||||
|Account receivable|Oceanic (Yantai)|9,429,585.00||||
||Foods Co., Ltd.|||||
||YAW ADDO|||||
|Other account receivable||7,161,843.14||7,063,276.73||
||FISHERIES CO.,LTD|||||
||YAW ADDO|||||
|Long-term receivables||6,868,229.37||6,426,342.82||
||FISHERIES CO.,LTD|||||
||Shandong Zhonglu|||||
|Other account receivable|Fishery Shipping Co.,|24,714,718.67||24,714,718.67||
||Ltd.|||||

Account payable to related party
In RMB
|||||
|-|-|-|-|
|Item|Related party|Closing amount|Opening amount|
||Habitat|||
|Other payables||15,332,054.79||
||InternationalCorporation|||
||Shandong Zhonglu Haiyan|||
|Other payables||33,966,495.30||
||Oceanic Co., Ltd.|||

IX. Notes to main items in financial statement of parent company
1. Account receivable
(1) Account receivable
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Category|Closing amount||||Opening amount||||
||Book balance||Bad debt provision||Book balance||Bad debt provision||
|||Propo||Proporti||Proporti||Proporti|
||Amount||Amount||Amount||Amount||
|||rtion||on||on||on|
|Account receivable with bad debt provision accrual by portfolio|||||||||
|||100.0||||100.00|||
|Age portfolio|15,119,769.58||5,689,367.98|37.63%|5,690,184.58||5,689,367.98|99.99%|
|||0%||||%|||
|||100.0||||100.00|||
|Subtotal|15,119,769.58||5,689,367.98|37.63%|5,690,184.58||5,689,367.98|99.99%|
|||0%||||%|||
|Total|15,119,769.58|--|5,689,367.98|--|5,690,184.58|--|5,689,367.98|--|

 Explanation on category of account receivable
Account receivable with major single amount and withdrawal bad debt provision single at period-end
□Applicable√Not applicable
Account receivable with bad debt provision withdrawal by method of account age in portfolio
√ Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
||Book balance|||Book balance|||
|Account age|||||||
|||Proporti|Bad debt provision||Proporti|Bad debt provision|
||Amount|||Amount|||
|||on|||on||
|Within one year|||||||
|Including:|--|--|--|--|--|--|
|Within six|||||||
||9,429,585.00|62.37%|||||
|months|||||||
|Subtotal|||||||
|within one|9,429,585.00|62.37%|||||
|year|||||||
|1-2 years|1,166.57||349.97|1,166.57|0.02%|349.97|
|Over 3 years|5,689,018.01|37.63%|5,689,018.01|5,689,018.01|99.98%|5,689,018.01|
|Total|15,119,769.58|--|5,689,367.98|5,690,184.58|--|5,689,367.98|

 Account receivable with bad debt provision withdrawal by method of percentage of balance in portfolio
□Applicable√Not applicable
Account receivable withdrawing bad bed provision by other methods in portfolio
□Applicable√Not applicable
Account receivable with minor single amount but has individual bad debt provision accrual at period-end
□Applicable√Not applicable
(2) Reversal or recovery of account receivables during the reporting period
In RMB
||||||
|-|-|-|-|-|
||||Accumulated provision||
|||Basis for determination|||
|Contents of account|Reason for reversal of||of bad debt reserve|Amounts reversed or|
|||of original bad debt|||
|receivables|recovery||before reversal or|recovered|
|||reserve|||
||||recovery||

Provision for bad debt reserve for account receivable with single significant or minor amount but tested for impairment separately as at period-end:
In RMB
||||||
|-|-|-|-|-|
|Contents of account|||||
||Book balance|Bad debt amount|Provision proportion|Reason|
|receivables|||||

Explanation for account receivable with single minor amount while the risks of the group categorized with similar risk characteristics
are relative significant:
(3) Account receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of account||||Arising from related|
|||Time of write-off|Amount written off|Reason for write-off||
|company|receivables||||transactions (Y/N)|

 Explanation on write-off of account receivables:
(4)Account receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of the company||Bad debt provision|Book balance|Bad debt provisionaccrual|
||Book balance||||
|||accrual|||

 (5) Properties and contents of other accounts receivable with large amount
(6) Top five clients in account receivable
In RMB
||||||
|-|-|-|-|-|
|||||Proportion in total|
|Name|Relations with Company|Amount|Aging||
|||||account receivable|
|Shandong Zhonglu|||||
|Oceanic (Yantai) Foods|Subsidiary|9,429,585.00|Within 1 year|62.37%|
|Co., Ltd.|||||
|PANDA|Non-related party|3,600,962.12|Over three years|23.82%|
|Haifeng Company|Non-related party|430,625.10|Over three years|2.85%|
|Han Xue|Non-related party|293,209.20|Over three years|1.94%|
|Wholesale dept.|Non-related party|158,154.98|Over three years|1.05%|
|Total|--|13,912,536.40|--|92.03%|

 (7) Account receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total account|
|Name of the company|Relationship with the Company|Amount||
||||receivables (%)|

 (8)
Transferring amount is 0 Yuan for accounts receivable not conforming to terminate the confirmation.
(9) It is required to introduce the relevant transaction arrangement for asset securitization taking accounts receivables as the standard
2. Other account receivable
(1) Other account receivable
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing amount||||Opening amount||||
||Book balance||Bad debt provision||Book balance||Bad debt provision||
|Category|||||||||
||Amount|Propo||Propo||Propo||Propo|
||||Amount||Amount||Amount||
|||rtion||rtion||rtion||rtion|
|Other account receivable with bad debt provision accrual by portfolio|||||||||
||36,059,039.37|100.0||||12.40||77.58|
|Age portfolio|||3,491,482.24|9.68%|4,500,203.66||3,491,482.24||
|||0%||||%||%|
|Account receivable for|||||||||
|||||||87.60|||
|subsidiaries included in|||||31,777,995.40||||
|||||||%|||
|combination|||||||||
||36,059,039.37|100.0||||100.0||77.58|
|Subtotal|||3,491,482.24|9.68%|36,278,199.06||3,491,482.24||
|||0%||||0%||%|
|Total|36,059,039.37|--|3,491,482.24|--|36,278,199.06|--|3,491,482.24|--|

 Explanation on category of other account receivable
Other account receivable with major single amount and withdrawal bad debt provision single at period-end
□Applicable√Not applicable
Other account receivable with bad debt provision withdrawal by method of account age in portfolio
√ Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
||Book balance|||Book balance|||
|Account age|||||||
|||Proporti|Bad debt provision||Proporti|Bad debt provision|
||Amount|||Amount|||
|||on|||on||
|Within one year|||||||
|Including:|--|--|--|--|--|--|
|Within six|||||||
||693,037.39|1.92%|50,940.16|876,400.69|2.42%|43,820.04|
|months|||||||
|6 months to 1|||||||
||31,942,709.49|88.58%|28,148.59|149,573.79|0.41%|14,957.38|
|year|||||||
|Subtotal within|||||||
||32,635,746.88|90.51%|79,088.75|1,025,974.48|22.80%|58,777.42|
|one year|||||||

||||||||
|-|-|-|-|-|-|-|
|1-2 years|15,570.00|0.04%|4,671.00|40,730.12|0.11%|12,219.04|
|2-3 years||||26,026.57|0.07%|13,013.29|
|Over 3 years|3,407,722.49|9.45%|3,407,722.49|3,407,472.49|9.39%|3,407,472.49|
|Total|36,059,039.37|--|3,491,482.24|4,500,203.66|--|3,491,482.24|

 Other account receivable with bad debt provision withdrawal by method of percentage of balance in portfolio
□Applicable√Not applicable
Withdrawing bad bed provision by other methods in portfolio
□Applicable√Not applicable
Other account receivable with minor single amount but has individual bad debt provision accrual at period-end
□Applicable√Not applicable
(2) Other account receivable switch-back or taken back in reporting period
In RMB
||||||
|-|-|-|-|-|
|||Determination basis forkoriginal bad debtreserves|Amount of bad bedprovision accrualaccumulatively beforeswitch-back or takenback||
||Reason of switch bac|||Amount switch back or|
|Other account receivable|||||
||or take back|||taken back|

Accrual of bad debt provision for other account receivable with major single amount or with minor amount but have impairment test independently at period
In RMB
||||||
|-|-|-|-|-|
|Account receivable|Book balance|Bad debt|Accrual proportion|Reasons|

 Explanation on other account receivable with minor single amount but have major risks after combined with risk characteristic of the credit
(3) Other receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of other|||Reason for|Arising from related|
|||Time of write-off|Amount written off|||
|company|receivables|||write-off|transactions (Y/N)|

 Explanation on write-off of other receivables:
(4) Other receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of the company||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrual||accrual|

(5) Nature or content of other receivables with significant amount
(6) Top five clients in other account receivable
In RMB
||||||
|-|-|-|-|-|
|||||Proportion in total other|
|Name|Relations with Company|Amount|Aging||
|||||account receivable|
|Shandong Zhonglu|||||
|Fishery Shipping Co.,|Subsidiary|24,714,718.67|Within 1 year|75.89%|
|Ltd.|||||
|YAW ADDO|Leasing management|7,161,843.14|2-3 years|21.99%|
|Japan Daihatsu|Non-related party|288,896.39|Over three years|0.89%|
|Wang Yanle from|||||
||Staff of the Company|200,865.64|Over three years|0.62%|
|business dept.|||||
|Wende Ship Repair|||||
||Non-related party|200,000.00|Within 1 year|0.61%|
|Company|||||
|Total|--|32,566,323.84|--|100.00%|

 (7) Other receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total other|
|Name of the company|Relationship with the Company|Amount||
||||receivables|

(8)
Transferring amount is 0 Yuan for other accounts receivable not conforming to terminate the confirmation.
(9) It is required to introduce the relevant transaction arrangement for asset securitization taking other accounts receivables as the standard
3. Long term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanati||||
|||||||||||Accrual||
|||||||Sharehold||on on||||
||||||||Voting|||of||
|||||||ing||inconsiste|Provision|||
|||||Increase/|||proportio|||provision|Cash|
|Invested|Calculatio|Investme|Opening||Closing|proportio||ncy in|for|||
|||||decrease|||n in|||for|dividend|
|company|n method|nt cost|balance||balance|n in||proportio|depreciati|||
|||||change|||invested|||impairme|in Period|
|||||||invested||n between|on|||
||||||||company|||nt in||
|||||||company||the||||
|||||||||||Period||
|||||||||sharehold||||

||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||ing and||
||||||||voting||
|South|||||||||
||Cost|33,000,00|33,000,00|33,000,00||||33,000,00|
|Securities|||||0.87%|0.87%|||
||method|0.00|0.00|0.00||||0.00|
|Co., Ltd.|||||||||
|HABITA|||||||||
|T|||||||||
||Cost|12,476,14|12,476,14|12,476,14|||||
|INTERN|||||100.00%|100.00%|||
||method|5.60|5.60|5.60|||||
|ATIONA|||||||||
|L CORP.|||||||||
|Shandong|||||||||
|Zhonglu|||||||||
||Cost|21,380,32|22,869,51|22,869,51|||||
|Fishery|||||100.00%|100.00%|||
||method|0.00|3.38|3.38|||||
|Shipping|||||||||
|Co., Ltd.|||||||||
|Shandong|||||||||
|Zhonglu|||||||||
|Oceanic|Cost|32,280,00|55,448,18|55,448,18|||||
||||||74.23%|74.23%|||
|(Yantai)|method|0.00|5.24|5.24|||||
|Foods|||||||||
|Co., Ltd.|||||||||
|Shandong|||||||||
|Zhonglu|||||||||
||Cost|28,000,00|27,985,81|27,985,81|||||
|Haiyan|||||51.85%|51.85%|||
||method|0.00|1.01|1.01|||||
|Oceanic|||||||||
|Co., Ltd.|||||||||
|||127,136,4|151,779,6|151,779,6||||33,000,00|
|Total|--||||--|--|--||
|||65.60|55.23|55.23||||0.00|

Explanation on long term equity investment
4. Operating revenue and Operating cost
(1) Operating revenue
In RMB
||||
|-|-|-|
|Item|Current amount|Amount of the period before|
|Main operating revenue|107,599,036.19|72,545,924.45|
|Other revenue|3,033,875.69|4,756,262.02|
|Total|110,632,911.88|77,302,186.47|
|Operating cost|112,102,413.16|52,558,645.91|

(2) Main business (by industries)
In RMB
||||||
|-|-|-|-|-|
||Current amount||Amount of the period before||
|Industries|||||
||Operating revenue|Operating cost|Operating revenue|Operating cost|
|Oceanic fishing|107,599,036.19|111,189,202.42|72,545,924.45|49,783,238.95|
|Total|107,599,036.19|111,189,202.42|72,545,924.45|49,783,238.95|

 (3) Main business (by products)
In RMB
||||||
|-|-|-|-|-|
||Current amount||Amount of the period before||
|Products|||||
||Operating revenue|Operating cost|Operating revenue|Operating cost|
|Tuna|107,599,036.19|111,189,202.42|72,545,924.45|49,783,238.95|
|Total|107,599,036.19|111,189,202.42|72,545,924.45|49,783,238.95|

 (4) Main business (regions)
In RMB
||||||
|-|-|-|-|-|
||Current amount||Amount of the period before||
|Regions|||||
||Operating revenue|Operating cost|Operating revenue|Operating cost|
|Mainland China|82,945,156.17|88,114,817.28|38,947,932.45|32,264,212.55|
|Taiwan China|24,653,880.02|23,074,385.14|33,597,992.00|17,519,026.40|
|Total|107,599,036.19|111,189,202.42|72,545,924.45|49,783,238.95|

 (5) Top five clients in operating revenue
In RMB
||||
|-|-|-|
|||Proportion in total|
|Clients|Total operating revenue|operating revenue of the|
|||Company|
|No.1 Yantai Food|69,495,933.00|62.82%|
|No.2 Taiwan Fengqun Company|24,653,880.02|22.28%|
|No.3 Ningbo Fengsheng|7,471,171.17|6.75%|
|No.4 Li Wengong|5,917,059.00|5.35%|
|No.5 Ningbo Tropical|60,993.00|0.06%|
|Total|107,599,036.19|97.26%|

Explanation on operating revenue
5. Supplementary information of cash flow statement
In RMB
||||
|-|-|-|
|||Amount of the Previous|
|Item|Current Amount||
|||Period|
|1. Reconciliation of net profit to cash flows from operating activities:|--|--|
|Net profit|-12,778,455.07|-4,648,657.12|
|Add: Provision for impairment of assets|-19,604,921.86|28,100,964.35|
|Depreciation of fixed assets, oil assets and productive biological|5,862,598.35|6,705,488.08|
|assets|||
|Amortization of intangible assets|3,799.98|16,646.70|
|Losses on disposal of fixed assets, intangible assets and other|||
|||-1,470,292.70|
|long-term assets (income is listed with “- ”)|||
|Loss on retirement of fixed assets (income is listed with “- ”)|-1,548.60||
|Financial expenses(income is listed with “- ”)|970,801.67|1,730,237.32|
|Decrease in inventories(increase is listed with “-”)|41,651,358.05|-64,412,798.17|
|Decrease in operating receivables(increase is listed with “-”)|14,388,198.00|-5,290,079.93|
|Increase in operating payables(decrease is listed with “- ”)|-36,396,005.38|35,427,050.20|
|Other|7,158.75||
|Net cash flows arising from operating activities|-5,897,016.11|-3,841,441.27|
|2. Significant investing and financing activities that do not involve|||
||--|--|
|cash receipts and payments|||
|3. Net changes in cash and cash equivalents|--|--|
|Cash at the end of the year|9,080,954.88|26,592,324.84|
|Less: Cash at the beginning of the period|13,401,133.74|16,467,806.39|
|Net increase in cash and cash equivalents|-4,320,178.86|10,124,518.45|

 X. Supplementary Information
1. Current non-recurring gains/losses
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the|||
||-271,750.24||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|||
|including the subsidy enjoyed in quota or ration according to|||
||426,198.74||
|national standards, which are closely relevant to enterprise’s|||
|business)|||

||||
|-|-|-|
|Other non-operating income and expenditure except for the|||
||25,576.00||
|aforementioned items|||
|Foreign donations|-1,000.00||
|Total|179,024.50|--|

Explain recognition reasons item-by-item if the government subsidy reckoned into current gains/losses was the recurring gains/losses□Applicable√ Not applicable
2. Difference of the accounting data under accounting rules in and out of China
(1)Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
|||||Amount at|
||Amount in this period|Amount in last period|Amount at period-end||
|||||period-begin|
|Chinese GAAP|1,306,809.14|1,331,772.94|542,151,346.04|540,850,737.98|
|Items and amount adjusted by IAS|||||

(2)Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
|||||Amount at|
||Amount in this period|Amount in last period|Amount at period-end||
|||||period-begin|
|Chinese GAAP|1,306,809.14|1,331,772.94|542,151,346.04|540,850,737.98|
|Items and amount adjusted by foreign accounting rules|||||

(3)Reasons for the differences of accounting data under accounting rules in and out of China
3. ROE and Earnings per share (EPS)
In RMB
|||||
|-|-|-|-|
|||Earnings per share(EPS)||
||Weighted average rate of|||
|Net profit in Period||Basic earnings per|Diluted earnings per|
||ROE|||
|||share(EPS)|share(EPS)|
|Net profit attributable to common shareholders|0.24%|0.005|0.005|

|||||
|-|-|-|-|
|of Company||||
|Net profit attributable to common shareholders||||
|of Company after deducting non-recurring|0.21%|0.004|0.004|
|gains/losses||||

4. Abnormalities and reasons of the accounting statement items of the Company
1.Balance sheet
|||||||
|-|-|-|-|-|-|
|Item|Closing balance|Opening balance|Amount changed|Rangechanged %|Note|
|Account receivable|1,755,790.58|12,826,646.26|-11,070,855.68|-86.31|Note1|
|Account paid in advance|26,061,141.45|13,076,947.00|12,984,194.45|99.29|Note2|
|Other current assets||7,000,000.00|-7,000,000.00|-100.00|Note3|
|Construction in process|8,848,054.22|503,686.68|8,344,367.54|1,656.66|Note4|
|Short-term loans|29,258,210.07|21,607,961.51|7,650,248.56|35.40|Note5|
|Account received in advance|752,793.29|12,146,815.00|-11,394,021.71|-93.80|Note6|
|Taxes payable|-6,609,031.09|-11,250,338.56|4,641,307.47|41.25|Note7|
|Non-current liability due withinone year|10,038,164.53|18,162,141.05|-8,123,976.52|-44.73|Note 8|

Note1: Account receivable at period-end decrease over than that of period-begin mainly because the contact account receivable in export business from Yantai Subsidiary Company was collected
Note2: Account paid in advance at period-end increased mainly due to the amount paid for purchasing tuna material from Yantai Subsidiary Company and the access fishing fee paid in advance by Haiwei branch company
Note3: The preservation finance products of other current assets 7 million Yuan has redeemed on 15 January 2014, and no finance products in the Period
Note4: Construction in process at period-end increased mainly because the second-hand tuna long liner was purchased in the Period and the earnest money paid for purchasing the second-hand catch refrigerated carrier still not transform to assets
Note5: Short-term loans at period-end increased mainly because 6-month current capital loans 10.40 million Yuan increased by Zhonglu Haiyan Branch and the borrowings from Yantai subsidiary decreased
Note6: Account received in the advance at-period decreased mainly because no advance payment in the Period and the advance payment
last period has been settled
Note7: Taxes payable at period-end increased mainly because the export rebates received in the Period
Note8: Non-current liability due within one year at period-end decreased mainly because the bank loans returned in the Period 2. Profit statement
|||||||
|-|-|-|-|-|-|
|Financial expenses|1,091,710.54|244,394.62|847,315.92|346.70|Note1|
|Loss from assets devaluation||28,100,964.35|-28,100,964.35|-100.00|Note2|
|Mon-operation revenue|478,581.95|1,521,000.92|-1,042,418.97|-68.54|Note3|
|Income tax expenses|144,258.54|28,100.00|116,158.54|413.38|Note4|
|Minority interest income|-581,226.86|-17,829.94|-563,396.92|3,159.84|Note5|
|Other comprehensive income|-6,201.08|624,046.25|-630,247.33|-100.99|Note6|

 Note1: Financial expenses increased in the Period mainly because the interest paid for equity of Qingdao Double-Whale off-setting the financial expenses in last Period
Note2: There is no inventory falling price reserves in Period
Note3: Non-operation revenue decreased in the Period mainly because there has a 1.47 million Yuan revenue obtained from ships disposal from Haiwei branch in lastPeriod’s non-operation revenue
Note4: Income tax expenses increased in the Period mainly because the enterprise income tax for year of 2013 was paid by Haiyan subsidiary
Note5: Minority interest income decreased in the Period mainly because Haiyan subsidiary has a deficit in the Period
Note6: Other comprehensive income deceased in the Period mainly due to the minor changes in exchange rates in the Period
Section X. Documents available for reference
I.Accounting statement of the Company with signature and seal from the person in charge of the Company, person in charge of the accounting works and person in charge of accounting;
II. Original text of all documents of the Company as well as manuscript of the announcement that disclosed on website appointed by CSRC;
III. Text of 2014 semi-annual report with signature and seal of the legal representative.
Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Chairman: Li Wenyi
21 August 2014