中鲁半报告英文版.ppt

Shandong Zhonglu Oceanic Fishers Co., LtdFull-Text of Semi-Annual Report 2012SEMI-ANNUAL REPORT 2012I. Important NoteBoard of Directors and the Supervisory Committee of Shandong Zhonglu Oceanic Fisheries Co.,Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executiveshereby confirm that there are no any fictitious statements, misleading statements, or importantomissions carried in this report, and shall take all responsibilities, individual and/or joint, for thereality, accuracy and completion of the whole contents.All directors are present the meeting of the Board for deliberating the semi-annual report of theCompany in personPerson in charge of the Company Lu Lianxing, person in charge of accounting works ZhangWeiping and person in charge of Financial Organ(accountant officer) Lei Lixin hereby confirm thetruthfulness and completeness of the Financial Report in the Semi-annual Report of 2012.Paraphrase:Items“The Company” or “Company”“SDGZK”“Luxin Group”“Fisheries Enterprise”“SASAP”“SASAC”“CSRC”“Shandong SRB”“The report”Refers toRefers toRefers toRefers toRefers toRefers toRefers toRefers toRefers toRefers toDefinitionShandong Zhonglu Oceanic Fisheries Company LimitedShandong State-owned Assets Investment Holding CompanyLimitedLuxin Investment Holding Company LimitedShandong Group Corp. of Fisheries EnterprisesState-owned Assets Supervision and AdministrationCommission of Shandong Provincial GovernmentState-owned Assets Supervision and AdministrationCommission of the State CouncilChina Securities Regulatory CommissionCSRC, Shandong Securities Regulatory BureauSemi-Annual Report for 2012 compiled by the CompanyII. Company Profile(I) Company informationCode for A-shareShort form for A-shareListing stock exchange Shenzhen Stock ExchangeCode for B-shareShort form forB-share200992Zhonglu BLegal Chinese name ofthe CompanyAbbr. of legal Chinesename of the CompanyLegal English name ofthe CompanyAbbr. of legal Englishname of the Company山东省中鲁远洋渔业股份有限公司中鲁远洋Shandong Zhonglu Oceanic Fisheries Company Limitedzlyy1Tel.Shandong Zhonglu Oceanic Fishers Co., LtdFull-Text of Semi-Annual Report 2012Legal RepresentativeRegistered Add.Post Code ofregistered add.Office Add.Post Code of officeadd.Internet websiteE-mailLu LianxingNo.43 Heping Rd, Jinan City, Shangdong Province250014No.43 Heping Rd, Jinan, Shangdong Province250014zlzqb@(II) Contact person and waysSecretary of the BoardRep. of securities affairsNameZhou FengLi Ying; Li FengContact adds.No.43 Heping Rd, Jinan City, No.43 Heping Rd, Jinan City,Shangdong Province Shangdong Province0531-865532780531-86553276Fax.E-mail0531-86982906zlzqb@0531-86982906zlzqb@(III) Information disclosure and place for preparationNewspapers Designated forindormation disclosureWebsite desinated by CSRC forpublishing semi-annual reportplace for preparation ofsemi-annual reportDomestic: China Securities JournalOverseas: Hong Kong Comercial DBoard of Directors OfficeIII. Major accounting data and business abstract(I) Major accounting data and financial indexesWhether retroactive adjusted on previous financial report or not□Yes√ NoMajor accounting dataIncrease/decreasMajor accounting dataReporting period Same period of last(Jan. to June) yeare in this reportperiodyear-on-year(%)Total business revenue(RMB)Business profit(RMB)Total profit(RMB)Net profit attributable to shareholders of the listedcompany (RMB)250,900,094.0312,899,881.5927,069,346.8226,409,180.75236,312,065.4426,412,516.7654,085,104.1853,530,928.126.17%-51.16%-49.95%-50.67%Net profit attributable to shareholders of the listedcompany after deducting non-recurring gains and34,610,915.5251,087,340.70-32.25%losses(RMB)Net cash flow arising from operatingactivities(RMB)42,161,318.81End of this period36,625,204.19End of last period15.12%Increase/decreas20%Shandong Zhonglu Oceanic Fishers Co., LtdFull-Text of Semi-Annual Report 2012e in thisperiod-end overthat of lastperiod-end (%)Total assets(RMB)Owners’ equity attributable to shareholders of thelisted company(RMB)Share capital(Share)611,303,641.51463,333,375.37266,071,320.00572,604,658.35436,428,263.38266,071,320.006.76%6.16%Major financial indexesMajor financial indexesReporting period Same period of(Jan. to June) last yearIncrease/decrease in thisreport periodyear-on-year (%)Basic earnings per share (RMB/Share)Diluted earnings per share (RMB/Share)Basic EPS after deducting non-recurringgains/losses (RMB/Share)Fully diluted ROE (%)Weighted average ROE (%)Fully diluted ROE after deducting non-recurringgains/losses (%)Weighted average ROE after deductingnon-recurring gains/losses (%)Net cash flow per share arising from operatingactivities (RMB/Share)0.100.100.135.7%5.87%7.47%7.7%0.160.200.200.1912.27%12.85%11.71%12.79%0.14-50%-50%-31.58%-6.57%-6.98%-4.24%-5.09%14.29%Increase/decrease in thisEnd of thisperiodEnd of lastperiodperiod-end over sameperiod of lastperiod-end (%)Net assets per share attributable to shareholder oflisted company (RMB/ Share)Asset-liability ratio (%)1.7424.2%1.6423.78%6.1%0.42%Explanation on previous major accounting data and financial indexes at period-end (filling the adjustment explanation if retroactiveadjusted)1. Business profit shows a y-o-y down of 51.16% mainly due to the material changes on sales structure. The sink of seine ship causesincome from oceanic fishing business declined, which gains a higher gross profit, and the process and cooling business of aquaticproducts soaring in this period, which gains a lower gross profit. Therefore, business cost causes a major growth in this period.2. Total profit and net profit in this period decrease 49.95% and 50.67% respectively y-o-y, for the above reasons; after sink of “Taifu102”, relevant production cost 9.2715 million yuan was transfer-in non-operation expenditure; fuel subsidy decrease 3.4578 millionyuan y-o-y also resulted in the decline of total profit and net profit.(II) Difference of accounting data under CAS and IAS1. Difference of net profit and net assets disclosed in financial report based on IAS and CAS□ Applicable √ Non-applicable2. Difference of net profit and net assets disclosed in financial report based on foreignaccounting standards and CAS□ Applicable √ Non-applicable3. Detail items for major differencesExplanation on IASItems with majordifferencesAmount involved(RMB)Reasons for differencesand(or) foreignaccounting standardsinvolved3Shandong Zhonglu Oceanic Fishers Co., LtdFull-Text of Semi-Annual Report 20124. Explanation on accounting data difference under the foreign/domestic accountingstandards□ Applicable √ Non-applicable(III) Item and amount with non-recurring gains/losses deducted√Applicable □ Non-applicableItemsGains and losses from disposal of non-current assetsTax refund or exemption out of authorization, with absence of officialapproval document or accidentallyGovernmental subsidy calculated into current gains and losses(whileclosely related with the normal business of the Company, excluding thefixed-amount or fixed-proportion governmental subsidy according to theunified national standard)Fund occupation expenses received from non-financial enterprises thatreckon into current gains/lossesIncome occurred when investment cost paid by enterprise for obtainingsubsidiaries, associates and joint ventures are lower than its share infair value of net realizable assets of invested unitsGains and losses from exchange of non-monetary assetsGains and losses from entrusted investment or management assetsVarious asset impairment reserve provided for force majeure, such asnatural disaster;Gains/losses from debt reorganizationReorganization expenses, such as expenditure for allocation ofemployees and integration feeGains and losses from excess of transaction which are conducted on anon-fair-valued basis over its fair valueCurrent net gains and losses of subsidiaries occurred from combinationunder the same control commencing from period-begin to combinationdateGains and losses from contingent events which has no relation withnormal business of the CompanyGains and losses from change of fair values of held-for-transactionfinancial assets and financial liabilities except for the effective hedgebusiness related to normal business of the Company, and investmentincome from disposal of transactional financial assets and liabilities andfinancial assets available for saleReversal of impairment reserve for account receivable with separateimpairment testinggains/ losses from external entrustment loansGains and losses arising from change of fair value of investmentproperties whose follow-up measurement are at fair valueAffect upon current gains/losses arising from the one-off adjustment insubject to requirement of laws and rules in relation to taxation andaccountingIncome from entrusted custody operationOther non-operating income and expenditure except the abovementionedOther item that satisfied the definition of non-recurring gains and lossesInfluenced amount of minority shareholders’ equityImpact on income taxTotal4Amount (RMB)-4,779,798.5630,000.00-3,451,936.21-8,201,734.77NoteAmount0.000.00Shandong Zhonglu Oceanic Fishers Co., LtdFull-Text of Semi-Annual Report 2012Explanation on “Other item that satisfied the definition of non-recurring gains and losses” anddefined non-recurring gains and losses as recurring gain/loss according to natures and characteristicof self-operation statusAmountIteminvolvedNote(RMB)Net incomefrom equitytransferIV. Changes in Share Capital and Particular about Shareholders(I) Changes in share capital1. Statement of changes in shares□Applicable √Non-applicable2. Changes in restricted shares□Applicable √Non-applicable(II) Security offering and listing1. Security offering in previous three years□Applicable √Non-applicable2. Changes of total shares and structures as well as outcome of asset-liability structures□Applicable √Non-applicable3. Current shares held by internal staffs□Applicable √Non-applicable(III) Shareholders and actual controller1. Total shareholders at period-endEnd of reporting period, total shareholders of the Company has 16,130.00 in total.2. Shares held by top ten shareholders√Applicable □Non-applicableParticulars about shares held by the top ten shareholdersShareholders (full name)Nature ofshareholdersProportion Totalof shares amount ofheld (%) shares heldAmount of Shares pledgedthe or frozenrestricted Shareshares held statusShandong State-owned Assets InvestmentHolding Co., LtdShandong Luxin Investment Holding GroupCo., Ltd33.07% 88,000,000.00 88,000,000.0014.18% 37,731,320.00 37,731,230.00Chen Tianming2.16% 5,760,327.000.00China National Heavy Duty Truck GroupJinan Truck LLC.Wang DongshengWANXIANG INTERNATIONALINVESTMENT CORPORATION0.73% 1,950,000.00 1,950,000.000.57% 1,511,710.000.54% 1,450,000.00Yi YingHe Bin50.41% 1,078,200.000.38% 1,008,799.000.000.00Shandong Zhonglu Oceanic Fishers Co., LtdFull-Text of Semi-Annual Report 2012Huang JiayiFan Jiongyang0.36%0.31%953,687.00832,199.000.000.00Explanation of shareholdersParticulars about the shares held by the top ten unrestricted shareholders√Applicable □Non-applicableAmount ofType/amount of sharesShareholdersChen TianmingWang DongshengWANXIANG INTERNATIONAL INVESTMENT CORPORATIONYi YingHe BinHuang JiayiFan JiongyangPan ChunyuLin MingyuING ASIA PRIVATE BANK LIMITEDunrestricted sharesheld at period-end5,760,327.001,511,710.001,450,000.001,078,200.001,008,799.00953,687.00832,199.00709,490.00611,140.00574,701.00TypeB-shareB-shareB-shareB-shareB-shareB-shareB-shareB-shareB-shareB-shareAmount5,760,327.001,511,710.001,450,000.001,078,200.001,008,799.00953,687.00832,199.00709,490.00611,140.00574,701.00Explanation on associated relationship among the top ten shareholders or (and) consistent actionAmong shareholders as listed above, Shandong State-owned Assets Investment Holding Co., Ltd and Shandong Luxin InvestmentHolding Group Co., Ltd are provincial state owend enterprises under the same stock controlling of Shangdong Provincial Commission; ChinaNational Heavy Duty Truck Group Jinan Truck LLC. is our promoter shareholder; the shareholders just mentioned have noassociated relationships or belong to consistent actors regulated by the Management Regulation of Information Disclosure on Changeof Shareholding for Listed Companies. Others are listed foreign shares in circulation in the territory of shareholders; it is unknownwhether they belong to consistent actors or have associated relationship or regulated by the Management Regulation of InformationDisclosure on Change of Shareholding for Listed Companies.Strategic investors or general legal persons range top 10 as new stocks placed.□Applicable √Non-applicable3. Controlling shareholders and actual controller(1) Changes of controlling shareholders and actual controller□Applicable √Non-applicable(2) Introduction of controlling shareholders and actual controllerWhether has new actual controller or not□Yes √No □Non-applicableName of actual controllerType of actual controllerState-owned Assets Supervision and AdministrationCommission of Shandong Provincial GovernmentLocal State-owned Assets Supervision andAdministration CommissionExplanationsLegal Representative: Tan ChengyiDate of Establishment: 2004/06/18Venture Nature: Ad hoc agency directly attached to government of Shangdong ProvinceCore Business: perfom responsibilities of investors, monitor holds or increases of the supervisedstate owend assets, etc.(3) Block diagram of property rights and controlling relationship between the Company andactual controller6Shandong Zhonglu Oceanic Fishers Co., LtdFull-Text of Semi-Annual Report 2012State-owned Assets Supervision and AdministrationCommission of Shandong Provincial Government100%Shandong State-owned Assets Investment HoldingCo., Ltd33.07%Shandong Zhonglu Oceanic Fisheries Co., Ltd(4) Actual controller controlling the Company by means of entrust or other assetsmanagement□Applicable √Non-applicable4. Other legal person’s shareholders with over ten percent shares held√Applicable □Non-applicableName of Legal Person ShareholderLegal Date ofRepresentative EstablishmentCore Business or ManagemetnActivityCaptialRegistered(10 Currencythousand)Outward investment(no laws orregulations restricted industriesincluded) and management,investment consultant( noShandong Luxin InvestmentHolding Group Co., LtdMeng, Fanli2002/01/31consultant in securities andfutures), assets management, trust300,000 CNYoperation, capital operation;guarantee; hotel management;leasing house, propertymanagement.Date of Establishment: Jan. 31th, 2002 Capital Registered: 3billion Yuan Scope of Business:Outward investment(no laws or regulations restricted industries included)and management,Explanationinvestment consultant(no consultant in securities and futures), assets management, trustoperation, capital operation; guarantee; hotel management; leasing house, propertymanagement.(IV) Convertible corporate bonds□Applicable √Non-applicableV. Directors, Supervisors and Senior Executives7Shandong Zhonglu Oceanic Fishers Co., LtdFull-Text of Semi-Annual Report 2012(I) Changes of shares held by directors, supervisors and senior executiveWhetherAmount Amount ofAmount ofreceivedNameTitleSex AgeOfficedated fromShares held of shares shares Shares held Including: stockOffice at increase in decreased at restricted option helddated ended period-begi this in this period-end shares held atn(Share) period(Sha period (Share) (Share) period-endReasonsforchangesremunerationfromshareholders’unit or otherre)(Share)(Share)related unitor notLu, LianxingLi, WenyiChairman ofthe BoardManagingDirectorMM47 2011-8-2656 2010-6-102013-6-92013-6-90.000.000.000.000.000.000.000.000.000.000.000.00NoneNoneYesNoSong WenjianDeputyM56 2010-6-102013-6-9NoManaging0.000.000.000.000.000.00NoneDirectorZhou Tianxiang DirectorM55 2010-6-102013-6-90.000.000.000.000.000.00NoneYesZhangChunxingChi WeizhenHu YuanmuDirectorDirectorIndependentDirectorMMM46 2011-8-2646 2011-8-2658 2010-6-102013-6-92013-6-92013-6-90.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00NoneNoneNoneYesNoNoZhong Zhigang IndependentDirectorM45 2010-6-102013-6-90.000.000.000.000.000.00NoneNoXu HaifengIndependentDirectorM42 2010-6-102013-6-90.000.000.000.000.000.00NoneNo8Shandong Zhonglu Oceanic Fishers Co., LtdFull-Text of Semi-Annual Report 2012Zhou FengSecretary of the M57 2010-6-102013-6-9000000 NoneNoBoard/Vice GMLi MingVice GMM47 2010-6-102013-6-9000000 NoneNoZhang Weiping Chief Financial M57 2011-8-262013-6-9000000 NoneNoOfficerHuang LiChairmanof M55 2011-8-262013-6-9000000 NoneYesthe SupervisoryBoardChi MingYangSupervisorSupervisorFM48 2010-6-1055 2010-6-102013-6-92013-6-900000000000 None0 NoneNoYesGongmingSong JinghaiSupervisorM51 2010-6-102013-6-9000000 NoneNoShang Qinghua SupervisorF42 2010-6-102013-6-9000000 NoneNoTotal------------Directors, supervisor and senior executives who awarded equity incentive in report period□Applicable √Non-applicable9YesYang(II) Post holdingPost holding in shareholders’ unit√Applicable □Non-applicableWhetherreceivedNameShareholders’ unitPost occupiedService term Service termfrom endedremuneration fromshareholders’ unit ornotHuang LiShandong State-owned AssetsInvestment Holding Co., LtdHead of HumanRescourceDepartment(Party 2009-12-1workDepartment)—YesZhangChunxingShandong State-owned AssetsInvestment Holding Co., LtdDirector ofCapital Operation 2011-3-1—DepartmentZhouShandong Luxin Investment Holding Vice Chief—TianxiangGroup Co., LtdAccoutant/ HeadRiskManagementDepartmentShandong Luxin Investment Holding Supervisory2010-2-1YesGongminGroup Co., LtdBoard Chairmanof a subsidiary to2010-2-1—YesLuxin GroupExplanationon joboccupation inshareholders’unitPost holding in other unit√Applicable □Non-applicableWhetherreceivedNameother unitPost occupiedService term Service term remuneratifrom ended on fromother unitor notHu Yuanmu Shangdong University of Financeand EconomicsProfessor inAccountingYesXu Haifeng Ji'nan Academy of Social Sciences DirectorInstituteofofYesLawZhongZhigangExplanationon joboccupationin other unitShangdong De Yi Jun Da Law Firm PartnerN/AYes(III) Remuneration of directors, supervisors and senior executivesDeterminationprocedures ofremuneration forAllowance for director, supervisors and senior executives was planed out byremuneration & assessment committee of the Board and was approved by Shareholders’Director, Supervisor General Meeting after deliberation in the Board;and Senior ExecutiveAllowance for incumbent director, supervisors and Senior Executive was confirmedbased on implementation standard established in National Ministry of Labour,Confirmation basis of Management of the firm such as Chairman of the Board，GM, Vice GM, Chief Financialremuneration forSupervisor, Secretary for the Board and so on are paid by year, including basic andDirector, Supervisor performance yearly salary with reference to documents about corporation performanceand Senior Executive appraisal regulations pubilised by Ministry of Finance and yearly salary implementationmethods of related ventures in other provinces or cities, and real status of other pubiliclylisted companies within Shangdong.Real remunerationpayment for Director,Supervisor and SeniorPay by monthExecutive(IV) Changes of directors, supervisors and senior executivesNamePositionSituation ofchangeDate of changesReasons of changes(V) Employees of the CompanyPerson on-jobsNumber of retired workers required to bear theexpensesProfessional constitute516.0081.00Category of Professional constituteProduction staffSalesmanTechnicianFinancial staffAdministration staffEducation backgroundCategory of Educational backgroundMasterUndergraduateNumber of Professional constituteNumber (person)352.0012.0037.0024.0091.003.0051.00Junior collegeJunior college bellowed118.00344.00Explanation on employees:VI. Report of the Board of Directors(I) Management discussion and analysisDuring reporting period, we continue to focuse on pelagic fishery, aquatic products processing andexport, and rent and management of refrigerated ships. And weight of pelagic fish catched hasreached 2,763.92 tons with an income of 250,900.1 thousand yuan which increased by 6.17% overthe same time of last year and operating cost 218,874.3 thousand yuan increasing by 12.12%. Profitis 12,899.9 thousand yuan decreasing by 51.16% over the same time last year which have ownersbelong to parent company had a net profit of 26,409.2 thousand yuan.Is the actual achievement of company 20% less or 20% higher than the profit forecast or businessplan in the reporting period, which has been publicly disclosed?□ Yes √ No □Non-applicableThe analysis of operating and achievement about the major subsidiaries and shareholdingcompanies:ItemTotal AssetsNet AssetsCapital RegisteredPercentage of StakeShipping company16,482,895.07809,160.7422,505,600.00100.00HIC international company124,879,419.69118,749,933.8812,476,146.00100.00Yantan(Food)Co.,ltd202,614,444.9794,980,923.3475,593,300.00100.00OwnedCapital Invensted22,505,600.0012,476,146.0012,476,146.00Business nature /Main Internationl Shipping\ Cold Proprietary RefreigeratedFroze, cold storage, processing and sales ofProducts or ServicesAquatic Product ShipmentTransportation Businessaquantic products, livestock, fruits andvegetables, etc.Operating RevenueOperatin ProfitNet profit8,397,406.67-1,922,529.01-1,922,529.0125,491,936.957,139,768.218,178,582.18181,285,655.755,250,328.534,621,162.46Risky factors which may incur negative effect to the company future strategic and operating targets:1. Impacted by global finacial crisis, the world market of this industry slowdown continues.2. As pirats are more rampant, more risks for the company to operat at the traditional fishing area.3. Cost of labors increases which cause the production line cannot run enough for lack of staff.1. Main business and operations(1)Statement of main business classified according to industries and productsUnit: RMBClassified accordingto industries orproductsOperatingrevenueGross Increase or Increase or Increase or decreaseOperating cost profit decrease of decrease of of gross profit ratioratio (%) operating operating over the last samerevenue cost over the period of last yearAccording to industriesover the last last samesame period period ofof last year last year (%)(%)(%)Pelagic fishery andreprocess79,469,478.83 67,000,613.37 15.69%-5.82%15.7%-15.69%Management and rentof refrigerated33,889,343.62 25,813,516.53 23.83%14.44%10.43%2.76%transportation shipsAquatic productprocess, freeze, etc134,231,065.42125,119,665.336.79%11.1%10.59%0.43%According to productsTunaShip Rent79,469,478.83 67,000,613.37 15.69%33,889,343.62 25,813,516.53 23.83%-5.82%14.44%15.7%10.43%-15.69%2.76%Aquatic productprocess and coldstorage134,231,065.42125,119,665.336.79%11.1%10.59%0.43%Explanation on main business classified according to industries and productsExplanation on major changes of gross profit over same period of last yearGross profit ratio of Tuna in this period decrease by 15.69% over same period of last year, mainreason is subsidiary Qingdao Haiwei Company fishing ships cut down.(2) Main business classified according to areasUnit: RMBIncrease/decrease in revenue fromAreasMainland ChinaTaiwan ChinaJapanSingaporeGhanaSouth KoreaUSSpainOther areasOperating revenue45,560,040.4849,389,849.01102,292,151.8017,454,830.616,537,224.7426,355,791.23operations over the same period oflast year (%)-17.25%-18%29.3%17.62%47.63%60.95%-100%-100%-100%Explanation on main business according to areasExplanation on main business institutionThe company is an pelagic fishery conglomerate, main businesses are pelagic fishery, rent ships forfishing and refrigerated transportation, aquatic product import and export; aquatic product process,cold storage, etc.(3) Explanation on reasons of material changes in main operations and its structure□Applicable√Non-applicable(4) Explanation on reasons of material changes in profitability (gross profit ratio) of mainoperations compared with that of last year√Applicable□Non-applicableLower fishing income led by decrease in purse seine vessels of the company is the main reason forgross profit decline in reporting period over the same period of last year.(5) Analysis on reasons of material changes in profit constitution compared with the previousyear□Applicable√Non-applicable(6) Business nature, main products or services and net profit status of those stake-held companys whichmade up around 10% of net profit.□Applicable√Non-applicable(7) Questions and Difficulties in Operating1. Impacted by global financial crisis, world market continues downturn which has negative effect to thedevelopment of export-oriented companies. 2. For the rampant pirates the company needs to traditional fishingareas and transfer to fishing at unfarmiliar waters which will impact fishing outcomes. 3. Due to the upside oflabour, the company can not afford enough operators to have several business run as normal. 4. Financailfunction of B share listed companies are strictly restricted which severely limited the enlargement ofmanufacturing and operating scope.2. Internal control mechanism related with fair-value measurement□Applicable√Non-applicable3. Foreign currency financial assets and financial liabilities held□Applicable√Non-applicable(II) Investment of the Company1. General Application of the raised proceeds□Applicable√Non-applicable2. Commitments on projects of raised funds□Applicable√Non-applicable3. Changes of projects of raised funds□Applicable√Non-applicable4. Investment on major projects of non-raised funds√Applicable□Non-applicableDisclosureUnit: 10 Thousand RMBItemsdate of initialAmountProgressItems revenuereportBuild 8 small tunalongline fishingboats2011.8.279184 ongoingTotal9184----Statements on primary investment projects with non-raised fundsProject is progressing well as planned schedule.(III) The modification of Board to the business plan for the second half of the year□Applicable √Non-applicable(IV) Prediction of business performance from January – September 2012Awareness and reason statement on that accumulative net profit from the year-begin to the end ofthe next reporting period may be a loss or a dramatic change could happen compared with the oneof the same period of last year□ Applicable √ Non applicable(V) Explanation on “Qualified Opinion” from the Certified Public Accountants in the reportperiod by the Board of Directors□Applicable√Non-applicable(VI) Explanation of the Management on changes and disposal of the issues involved in“Qualified Opinion” from the Certified Public Accountants in the last year by the Board ofDirectors□Applicable√Non-applicable(VII)Stating the discussion results issued by the Board on changes in the Company’saccounting policies and accounting estimates or reasons for material accounting errorcorrection and influences thereof□ Applicable √ Non-applicable(VIII) Formulation and implement over the cash dividend policyThe company established “Draft Revision of Provisions on the Distribution of Profits in ‘CompanyCharter’ ”, which strictly follows the instructions in “Notice on the Relevant Issues for the FurtherImplementation of Listed Companies’ Cash Dividend” published by China Securities RegulatoryCommission, and relavent documents of Shangdong Bureau of Securities and Futures》. This Draftspecify and complete the policies on profits distribution included in “Company Charter”, especiallydetails of dividend standard, proportion,etc., modifying conditions and decision-making mechanismand procedure of relevant items. Meanwhile, also included in this Draft items indicating thatindependent directors should full their duties and responsibilities, and the company pay enoughattention to the suggestions and requests from shareholders especially the minority ones. This Drafthas been approved by Shandong Bureau of Securities and Futures who also allowed its contents tobe reviewed on the 13th meeting of the Fourth Session of the Board of Directors which is scheduledon Aug. 16th. The company will seriously carry out the modification of profits distribution terms in“Company Charter” as planned, which will well safeguard the interests of minority shareholders.(IX) Plan of profit distribution or capital reserve capitalizing□Applicable√Non-applicable(X) Positive retained profit accumulated at end of 2011 without cash distribution carried out□Applicable√Non-applicable(XI) Other events disclosed(XII) Liabilities, credit changes and cash arrangement for debt paying in later year (Onlyapplies to listed company with corporate convertible bonds offered)□Applicable√Non-applicableVII. Significant Event(I) Corporate governanceDuring reporting period, the company keeps perfecting the corporate governance structure andimporving level of corporate governance strictly following laws as “Compnay Law” and “SecuritiesLaw” of PRC, and the regulation in “Corporate Governance Rules” by China Securities RegulatoryCommission, “Listing Rules” by Shenzhen Stock Exchange, “Guide to the Standard Operation ofListed Companies”, and so on. So far, the company organization and governance structure isappropriate,“the Three Boards” are running correctly, directors, supervisors and executives arehonest and diligent in fullfil their duties and responsibilities, the real status of corporate governanceis consisted with the rules of documents by China Securities Regulatory Commission, and has nounsolved governance problems left. Main tasks of ventures on corporate governance as following:1. According to the spirits and relevant documents o conference on implementation of controlspecifications within Shandong hosted by Shandong Buruea of Securities and Futures, the companyset up a leading group inner company fully responsible for the implementation of controlspecifications staff within the venture; the leader of which is Chairman of the Board,and deputyteam leader GM. At the same time an internal control project group has also been formed led byChief Fiance Officer and deputy team leader Director of Supervision and Auditing Office. With theguidance of leading group, instructions of “Internal Control Specifications Inner Company”, and thehelp of outer consultant agency the project group mainly in charge of establishing internal controlspecifications, forming of corporate internal control system and self-appraisal staff. It’s alsoresponsible for coordinating the progressing of each function and solving all kinds of problemsgenerated to ensure the smooth heading on of implementation of internal control specifications.Through this event, and base on problems in previous production and the operation, the companyintents to well carry out self check and adjustment, to further strengthen the internal control system,and the implementation effect of internal control structure so as to manage company morestandardizing, and enhance overall governace level of the venture. Up to now, the company hasdone the tasks of the preparation stage, and is going on with internal control set up stage as planned.The company periodically reports latest status to Shangdong Bureau of Securities and Futures, andno any dissent feedback.2. Right after informed by Shandong Bureau of Securities and Futures “Notice on wellImplementation of Work on Securities and futures within Shandong in 2012”, the company collectdirectors, supervisors, executives and all departments and members related to well transmit themeeting spirit of national securities and futures monitor and management staff, also the relatedcontens in the Notice. Then according to regulator departments’ instructions, the company strictlymade work plan which is seriously followed, actively implementing the meeting spirit. Finnaly,report to the regulator department’s status of related activities and work arrangement of 2012.3、Base on the instructions of “Notice on Precepts of Intensive Develop Investors ProtectionPropagating”, the company pubished “Precepts on Intensive Develop Investors ProtectionPropagating”, which includes the rule that the company strengthen the communication withsecurities investors via post slogans, hold related meetings other communication methods toreasonable guide them invest rationally and protect self lawful interests. Related departments andmembers in the company are actively cooperate which ensures the effective implementation of theprecepts.4. The company highly regard “Notice on Print and Send Implementation Plan on TroubleshootingLocal Finacial Risks over Shandong” by general office of Shandong People’s Government and“Notice on Well Implementation Troubleshooting of Finacial Risks” by Shandong Bureau ofSecurities and Futures.It immediately eastablished “Implementation Plan on Troubleshooting ofFinacial Risks” and build a special team responsible to follow up. After a whole month of efforts,the company smoothly passed self check and correct phase, reform and improve phase, andsummaryize and accept phase which have the company enhance the capability in preventing andsolve financial crisis and promote the well operation of the company.(II) Implementation of profit distribution plan, capital reserve capitalizing or shares offeringthat plan out previously and carry out in this reporting period□Applicable√Non-applicable(III) Material lawsuits and arbitrations□Applicable√Non-applicable(IV) Related event of bankruptcy reorganization□Applicable√Non-applicable(V) Equity of other listed company and stock jointly financial enterprise held by the Company1. Security investment□Applicable√Non-applicable2. Equity of other listed company held by the Company□Applicable√Non-applicableExplanation on equity of other listed company held by the Company3. Equity of non-listed financial enterprise held by the Company□Applicable√Non-applicable4. Buying and selling shares of other listed company□Applicable√Non-applicable(VI) Assets transaction1. Assets purchased or acquired□Applicable√Non-applicableExplanation on assets purchased2. Assets sold□Applicable√Non-applicableExplanation on assets sold3. Assets replacement□Applicable√Non-applicableExplanation on assets replacement4. Business combination□Applicable√Non-applicable5. Progress of the events and their influence on the Company’s operating results andfinancial status in the report period after the Report on Assets Restructure or Public Noticeon Acquisition and Sales of Assets being published□Applicable√Non-applicable(VII) Explanation on shareholding increase proposed or implemented by largest shareholderof the Company and its persons acting in concert in reporting period□Applicable√Non-applicable(VIII) Implementation and its influence of equity incentive□Applicable√Non-applicable(XI) Significant related transaction1. Related transaction related to daily operation□Applicable√Non-applicable2. Related transaction incurred by purchase or sales of assets□Applicable√Non-applicable3. Significant related transaction from jointly investment outside□Applicable√Non-applicable4. Current related liabilities and debts□Applicable√Non-applicableFund occupation and progress of paying off□Applicable√Non-applicableTill end of reporting period, accountability plan proposed by the Board for completed nonon-operational fund occupation from listed company□Applicable√Non-applicable5. Other significant related transaction(X) Significant contracts and its implementation1. Profits earned from trusteeship, contract and lease reached over 10% (10% included) oftotal profit in this period(1) Trusteeship□Applicable(2) Contract□Applicable(3) Lease□Applicable2. Guarantees√Applicable√Non-applicable√Non-applicable√Non-applicable□Non-applicableUnit: 00’000Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)Name of theCompanyguaranteedRelated GuaranAnnouncement teedisclosure date limitActual date ofhappening (Dateof signingagreement)Actualguarant Guarantee typeee limitGuaranteetermCompleteimplementationor notGuarantee forrelatedparty(Yes orno)Qingdao DoubleNoNoWhalePharmaceutical2003-08-222,0002,000 Gurarantee5yearsCo.,LtdQingdao DoubleWhale2003-08-221,5001,500Gurarantee5yea NoNo2600260026000.13820000PharmaceuticalCo.,LtdrsQingdao DoubleGurarantee5yea NoNoWhalePharmaceutical2003-08-22500303.77rsCo.,LtdTotal approving external guaranteein report period (A1)Total actual occurredexternal guarantee inreport period (A2)Total actual balance ofTotal approved external guaranteeat the end of report period ( A3)3,803.77external guarantee at theend of report period3,803.77(A4)Guarantee of the Company for the subsidiariesName of theCompanyguaranteedRelatedAnnouncementdisclosure dateGuaranteelimitActual date ofhappening(Date ofsigningagreement)ActualguaranteelimitGuaranteetypeGuaranteetermComplete Guaranteeimple for relatedment party (Yesation or no)or notShandong ZhongLuOceanic(Yanta 2012-04-26i) Foods Co.,4,000 2012-04-262,600 Guarantee2yearsNoYesLtdTotal amount of approvingguarantee for subsidiaries inreport period (B1)Total amount of approvedguarantee for subsidiaries at theend of reporting period (B3)Total amount of actualoccurred guarantee forsubsidiaries in report4000 period (B2)Total balance of actualguarantee forsubsidiaries at the end4000 of reporting period (B4)Total amount of guarantee of the Company( total of two abovementioned guarantee)Total amount of approvingguarantee in report period (A1+B1)Total amount of actualoccurred guarantee in4000 report period (A2+B2)Total amount of approved guaranteeat the end of report period (A3+B3)Total balance of actualguarantee at the end of7803.77 report period (A4+B4)6403.77The proportion of the total amount of actually guarantee in thenet assets of the Company(that is A4+ B4)Including:Amount of guarantee for shareholders, actual controller and itsrelated parties(C)The debts guarantee amount provided for the guaranteedparties whose assets-liability ratio exceed 70% directly orindirectly(D)Proportion of total amount of guarantee in net assets of theCompany exceed 50%(E)Total amount of the aforesaid three guarantees(C+D+E)Explanations on possibly bearing joint and several liquidating N/AN/Aresponsibilities for undue guaranteesExplanations on external guarantee against regulatedprocedures3. Trust financing□Applicable√Non-applicable4. Implementation of material contracts entered into during the normal operation5. Other significant contract□Applicable√Non-applicable(XI) Explanation on corporate bonds offering□Applicable√Non-applicable(XII) Implementation of commitments1. Commitments made by the Company or shareholders holding above 5% shares of theCompany in reporting period or extending to reporting period.□Applicable√Non-applicable2. Explanation on assets or projects that reached the original profit forecast as well as itsreasons while the reporting period still in forecast period, and there are profit forecast onassets or projects of the Company□Applicable√Non-applicable(XIII) Items of other consolidated incomeUnit: RMBItems1. Gains(losses) from financial assets available for salesLess: Income tax influences from financial assets availablefor salesNet amount reckoned into other consolidated income inprevious period but transferred into gains/losses in currentperiodSubtotal2. Shares in the other consolidated income of the investeecalculated based on equity methodLess: Income tax influences of shares in the otherconsolidated income of the investee calculated based onequity methodNet amount reckoned into other consolidated income inprevious period but transferred into gains/losses in currentperiodSubtotal3. Gains(losses) from cash flow hedge instrumentLess: Income tax influences from cash flow hedgeNet amount reckoned into other consolidated income inprevious period but transferred into gains/losses in currentperiodAdjusted amount transferred to initial confirmed amount ofthe arbitraged itemsSubtotal4. Differences from translating foreign currency financialThis period33,737.5933,737.59462,193.65Last period0.000.00425,924.10statementsLess: Net amount of disposing overseas business transferredto current gains/lossesSubtotal5. OthersLess: Income tax influences by others reckoned into otherconsolidated incomeNet amount reckoned into other consolidated income inprevious period but transferred into gains/losses in currentperiodSubtotalTotal462,193.65495,931.24425,924.10425,924.10(XIV)Registration form of receiving research, communication and interview in the reportperiodContentDatePlaceWayTypeObjectdiscussed anddocumentsprovidedIntroduction ofmanufacture2012-01-11JinanTelephone Individual Individual Investorbusiness thathave beendisclosedIntroduction ofmanufacture2012-02-08JinanTelephone Individual Individual Investorbusiness thathave beendisclosedIntroduction ofmanufacture2012-03-05JinanTelephone Individual Individual Investorbusiness thathave beendisclosedIntroduction ofmanufacture2012-03-13JinanTelephone Individual Individual Investorbusiness thathave beendisclosedIntroduction ofmanufacture2012-03-23JinanTelephone Individual Individual Investorbusiness thathave beendisclosedIntroduction ofmanufacture2012-03-30JinanTelephone Individual Individual Investorbusiness thathave beendisclosedIntroduction of2012-05-17JinanTelephone Individual Individual Investormanufacturebusiness thatEventhave beendisclosedIntroduction ofmanufacture2012-05-17JinanTelephone Individual Individual Investorbusiness thathave beendisclosedIntroduction ofmanufacture2012-05-17JinanTelephone Individual Individual Investorbusiness thathave beendisclosedIntroduction ofmanufacture2012-06-11JinanTelephone Individual Individual Investorbusiness thathave beendisclosed(XV) Engagement and non-reappointment of CPAWhether the semi-annual report was audited or not□ Yes√ No□Non-applicableWhether re-engaged the CPA or not□ Yes□No√ Non-applicable(XVI) Punishment and rectification for listed company and its directors, supervisor, seniorexecutives, shareholders of the Company, actual controller and purchasers□Applicable√Non-applicable(XVII) Explanation on other significant events□Applicable√Non-applicable(XVIII) Major changes of profitability of turn debt guarantor, assets status and creditstandings(applicable to listed company with convertibal bonds offer)□Applicable√Non-applicable(XIX) Disclosed information indexThe Press and pages for Dated ofdisclosure disclosedResolution Notice of 9th Hong Kong Commercial 2012-1-13Meeting of 4th Session of the Daily A8Board China Securities Journal,Securities Times A30Related transactions with related Hong Kong Commercial 2012-1-13parties joint investment bulletin Daily A8China Securities Journal,Securities Times A30Anoucement on Progressing Hong Kong Commercial 2012-3-13Status of Significant Issues Daily A11Internet website and retrieval pathfor disclosed informationhttp//http//http//thIssuesChina Securities Journal,Securities Times B006Resolution Notice of 10th Hong Kong Commercial 2012-3-16Meeting of 4th Session of the Daily A7Board China Securities Journal,Securities Times B038Abstract of 2011 Annual Report Hong Kong Commercial 2012-3-16Daily A7China Securities Journal,Securities Times B038Resolution Notice of 8 Meeting Hong Kong Commercial 2012-3-16of 4th Session of Supervisory Daily A7Committee China Securities Journal,Securities Times B038http//http//http//Annual Rorpts of ErrorsHong Kong Commercial 2012-3-23Daily A20China Securities Journal,Securities Times B007Resolution Notice of 11th Hong Kong Commercial 2012-4-26Meeting of 4th Session of the Daily A14Board China Securities Journal,Securities Times B047Notice of Guarantee for Hong Kong Commercial 2012-4-26http//http//Controlling SubsidiaryDaily A14China Securities Journal,http//Securities Times B047Abstract of First Quarterly Hong Kong Commercial 2012-4-26Report for yare of 2012Daily A14China Securities Journal,http//Securities Times B047Anoucement of Significant Hong Kong Commercial 2012-5-17Daily A5China Securities Journal,Securities Times A32Resolution Notice of 12th Hong Kong Commercial 2012-5-30Meeting of 4th Session of the Daily A11Board China Securities Journal,Securities Times B012Notification Notice of Annual Hong Kong Commercial 2012-5-30Shareholders’ General Meeting Daily A11of 2011 China Securities Journal,Securities Times B012Resolution Notice of Annual Hong Kong Commercial 2012-6-20Shareholders’ General Meeting Daily A9of 2011 China Securities Journal,Securities Times B010Notice of Performance Forecast Hong Kong Commercial 2012-7-14Daily A8China Securities Journal,Securities Times B025http//http//http//http//http//VIII Finacial Accouting Reports(I) Audit ReportsIs semi-annual reports audited or not?□ Yes √ No □ Non-applicable(II) Financial StatementsNeed statements be merged?√ Yes □ No □ Non-applicableIf no special instruction, the unit is RMB in Finacial Statements of Financial ReportsUnits in Notes of Finacial Statements is RMB1. Consolidated Balance SheetPrepared by: Shandong Zhong Lu Oceanic Fisheries Co., LtdUnit: RMBItemNoteBalance at End of the TermBalance at the beginning of the TermCurrent asstes:Monetary FundsSettlement FundsLending FundsTradable Financial AssetsNotes ReceivableAccounts ReceivablePrepaymentsPremium ReceivableReinsurance accountsreceivableReinsurance contract reservereceivableInterest ReceivableDividend ReceivableOther Receivable PaymentsBuying back the sale offinancial assetsInventoryDue within one year ofnon-current assetsOther current assetsTotal Current AssetsTotal Non-current AssetsIssuance of loans and advances93,146,168.4617,909,880.3535,403,032.017,750,660.8794,622,903.68248,832,645.3765,716,267.1422,427,103.136,408,261.2821,999,954.56124,832,080.16241,383,666.27SaeFinacial Assets Available for2,022,317.051,988,579.46The held-to-maturity investmentLong Term ReceivablesLong term equity investmentreal estate InvestmentFixed AssetProject in progressProject materialsLiquidation of Fixed AssetProductive Biological AssetOil and Gas AssetIntangible AssetDevelopment ExpenditureGoodwillLong Term Deferred ExpenditureDeferred Income Tax AssetOther Non-current AssetTotal Non-current AssetTotal AssetCurrent LiabilitiesShort Term BorrowingBorrowing from the Central BankDeposits and interbank depositBorrowed CapitalTransaction financial liabilitiesNotes PayableAccouts PayableAdvance PaymentFinancial assets sold for repurchaseFees and commissions payableEmployee compensation payableTaxes payableInterest PayableDividend PayableOther PayablesTo cope with the insurancereceivableReserves for insurance contractsAgency securities tradingAgency securities underwritingA year of non-current liabilitiesOther current liabilitiesTotal Current LiabilitiesNon-current LiabilitiesLong Term LiabilitiesBonds PayableLong Term PayableSpecial PayablePredicted LiabilityDeferred Income Tax LiabilityOther Non-current LiabilityTotal Non-current LiabilityTotal LiabilityOwners’ Equity（or Stockholder’sEquity）：Paid-in Capital(Equity)Capital SurplusDeduct: Stock InventorySpecial ReserveSurplus ReserveReserve for General RisksUndistributed ProfitConverted Difference inForeign Currency StatementsTotal Equity attributable to parentcompanyInterets of Minority37,822,387.02220,720,376.4061,876,966.8432,504,063.307,353,737.7030,902.00140,245.83362,470,996.14611,303,641.5139,474,486.4874,773,480.85437,909.7211,985,604.66-5,864,753.15459,329.8016,439,820.69137,705,879.0510,260,000.0010,260,000.00147,965,879.05266,071,320.00281,267,533.0121,908,064.19-107,294,834.681,381,292.85463,333,375.374,387.0938,431,719.78264,829,797.7218,342,056.377,488,592.92140,245.83331,220,992.08572,604,658.3519,553,517.3887,203,982.523,588,930.0114,496,240.38-5,297,391.42459,329.8016,167,399.21136,172,007.880.00136,172,007.88266,071,320.00281,233,795.4221,908,064.19-133,704,015.43919,099.20436,428,263.384,387.09ShareholdersTotal Owners’ Equity （orStockholders Equity）Sum of Liabilities and Owners’Equity（or Stockholders Equity）463,337,762.46611,303,641.51436,432,650.47572,604,658.35Legal Representative: Lu LianxingDirector in Charge of Accounting: Zhang WeipingDirector of Accounting Department: Lei Lixin2. Balance Sheet of Parent CompanyUnite: RMBItemNoteBalance at End of the TermBalance at the beginning of the TermCurrent Assets:Monetary FundTradable Finacial AssetsNotes RecivableAccounts ReceivablePrepaymentsInterest ReceivableDividend ReceivableOther ReceivablesInventoryDue within one year ofnon-current assetsOther Current AssetsTotal Current AssetsNon-current AssetsFiancial Assets available forSasleThe held-to-maturityinvestmentLong term receivablesLong Term Equity InvestmentInvestment Real EstateFixed AssetsProjects in ProcessMaterials for Projects65,297,639.5111,498,117.844,731,411.3025,076,738.4344,252,939.08150,856,846.162,022,317.056,332,179.5690,793,844.2237,822,387.0252,582,162.7061,766,781.9024,327,292.06232,948.014,700,978.8058,542,811.5145,214,341.65133,018,372.031,988,579.465,877,062.9990,793,844.2238,431,719.7891,751,651.9118,342,056.37Liquidation of Fixed AssetsProductive Biological AssetsOil and Gas Assets32,504,063.30Intagible AssetsDevelopment ExpenditureGoodwillLong-term Deferred ExpensesDeferred Income Tax AssetsOther Non-current AssetsSum of Non-current AssetsTotal AssetsCurrent LiabilitiesShort-term LoanTransaction FinancialLiabilitiesNotes PayableAccounts PayableAdvance PaymentEmployee CompensationPayableTaxes PayableInterest PayableDividend PayableOthers PayableNon - current liabilities duewithin one yearOther Current LiabilitiesTotal Current LiabilitesNon- current Liabilites:Long-term LoanBonds PayableLong term PayablesSpecial PayablePredicted LiabilityDeferred Income Tax Liability48,436.58283,872,172.33434,729,018.4910,152,453.46437,909.727,581,082.27559,646.23459,329.8042,118,768.5761,309,190.0510,260,000.0065,083.28247,249,998.01380,268,370.047,760,524.776,223,042.8910,337,537.0572,245.99459,329.807,882,101.9232,734,782.42Other Non-current LiabilitiesTotal Non-current LiabilitiesTotal LiabilitiesOwners Interest( Or StockholdersInterest):Paid-in Capital(or Equity)Capital SurplusDeduct: Stock InventorySpecial ReserveSurplus ReserveReserve for General RisksUndistributed ProfitsConverted Difference inForeignCurrency StatementsSum of Owners Interest( orStockholders Interest)Sum of Liabilities and OwnerInterest(or Stockholder Interest)10,260,000.0071,569,190.05266,071,320.00279,152,406.2119,184,672.34-201,248,570.11363,159,828.44434,729,018.490.0032,734,782.42266,071,320.00279,118,668.6219,184,672.34-216,841,073.34347,533,587.62380,268,370.043. Consolidated Income StatementsUnit: RMBItemI. Total operaion incomeIncluding: Operating IncomeNoteCurrent Amount250,900,094.03250,900,094.03Amount of the Previous Period236,312,065.44236,312,065.44Interest IncomeEarned PremiumFee and CommissionIncomeII Total Operating IncomeIncluding: Operating CostsInterest CostsFee and CommissionCostsCash SurrenderNet CompensationExpenses238,000,212.44218,874,259.05209,899,548.68195,211,217.64Net extraction reserves forinsurance contractsPolicy Dividend PayoutReinsurance expenseBussiness TaxPayments and SurchargeSales ExpensesManagement ExpensesFinancial Expenses401,832.221,913,459.7116,530,420.03612,320.50391,654.161,596,476.1211,415,579.781,658,847.99LossesAsset Impairment-332,079.07-374,227.01Plus: Fair Value Gains（Lossfilled in rows with “-”）Investment Gains( Lossfilled in rows with “-”）Including: Gains ofInvestment in AssociatedEnterprises and Joint VenturesExchange Gains( Lossfilled in rows with “-”）III. Operating Porfits（( Loss filledin rows with “-”）Add: Non-operating IncomeDeduct: Non-operatingExpenditureIncluding: DisposalLoss on Non-current liabilityIV Total Profits(Total loss filled inRows with “-”）Deduct: Income Tax PaymentsV. Net Profit( Net loss filled inRows with “-”）Including: Net profit of theparty before mergedNet Profit of the OwnerAttribute to the Parent CompanyLoss and Interest of MinorityStockholders12,899,881.5923,441,013.979,271,548.744,779,798.5627,069,346.82660,166.0726,409,180.7526,409,180.7526,412,516.7627,687,048.7414,461.3214,461.3254,085,104.18554,176.0653,530,928.1253,530,928.12VI Earnings Per Sharei. Basic earnings per shareii. Diluted earnings per shareVII. Other consolidatedincomeVIII. Total comprehensiveincomeTotal consolidated incomeattributable to owners of parent--0.100.10495,931.2426,905,111.9926,905,111.99--0.200.20425,924.1053,956,852.2253,956,852.22companyTotal consolidated incomeattributable to minorityshareholdersThe merger realized net profit RMB 0.00 before consolidation during enterprises consolidationunder a same control.Legal Representative: Lu LianxingDirector in Charge of Accounting: Zhang WeipingDirector of Accounting Department: Lei Lixin4. Profit Statement of parent companyUnit: RMBItemsI. Operating incomeLess: operating costOperating tax and extrasSales expensesAdministration expensesFinancial expensesLosses of devaluation of assetNoteAmount in this period76,969,574.9263,054,354.15214,242.10152,247.7011,594,044.53-545,105.836,940.30Amount in last period81,152,984.3054,001,778.57238,890.58435,076.787,564,677.57123,378.31101,259.95Add: Changing income of fairvalue(Loss is listed with “-”)Investment income (Loss islisted with “-”)Including: Investment incomeon affiliated company and jointventureII. Operating profit (Loss islisted with “-”)Add: Non-operating incomeLess: Non-operating expenseIncluding: Disposal loss ofnon-current asset2,492,851.9722,371,200.009,271,548.7418,687,922.5426,647,402.24III. Total Profitwith “-”)(Loss is listed15,592,503.2345,335,324.78Less: Income tax expenseIV. Net profit (Net loss is listedwith “-”)15,592,503.2345,335,324.78ItemV. Earnings per sharei. Basic earnings per shareii. Diluted earnings per shareVI. Other consolidated incomeVII. Total comprehensiveincome--0.060.0633,737.5915,626,240.82--0.170.1745,335,324.785. Consolidated Cash Flow StatementUnit: RMBI. Cash flows arising fromoperating activities:Cash received from sellingAmount in this periodAmount in last periodcommodities and providing laborservicesNet increase of customerdeposit and interbank depositNet increase of loan fromcentral bankNet increase of capitalborrowed from other financialinstitutionCash received from originalinsurance contract feeNet cash received fromreinsurance businessNet increase of insuredsavings and investmentNet increase of disposal oftransaction financial assetCash received from interest,commission charge andcommissionNet increase of capitalborrowedNet increase of returnedbusiness capitalWrite-back of tax receivedOther cash receivedconcerning operating activitiesSubtotal of cash inflow arisingfrom operating activitiesCash paid for purchasingcommodities and receiving laborserviceNet increase of customerloans and advancesNet increase of deposits incentral bank and interbankCash paid for originalinsurance contract compensationCash paid for interest,commission charge andcommission248,335,015.0511,231,763.7746,600,965.81306,167,744.63202,727,715.67242,381,023.019,642,291.6740,877,135.61292,900,450.29212,345,097.48Cash paid for bonus ofguarantee slipCash paid to/for staff andworkersTaxes paidOther cash paid concerningoperating activitiesSubtotal of cash outflow arisingfrom operating activitiesNet cash flows arising fromoperating activitiesII. Cash flows arising frominvesting activities:Cash received fromrecovering investmentCash received frominvestment incomeNet cash received fromdisposal of fixed, intangible andother long-term assetsNet cash received fromdisposal of subsidiaries and otherunitsOther cash receivedconcerning investing activitiesSubtotal of cash inflow frominvesting activitiesCash paid for purchasingfixed, intangible and otherlong-term assetsCash paid for investmentNet increase of mortgagedloansNet cash received fromsubsidiaries and other unitsOther cash paid concerninginvesting activitiesSubtotal of cash outflow frominvesting activitiesNet cash flows arising frominvesting activitiesIII. Cash flows arising fromfinancing activitiesCash received fromabsorbing investmentIncluding: Cash receivedfrom absorbing minorityshareholders’ investment bysubsidiariesCash received from loansCash received from issuingbondsOther cash receivedconcerning financing activitieSubtotal of cash inflow fromfinancing activities33,250,485.332,471,402.6425,556,822.18264,006,425.8242,161,318.810.0044,167,850.7144,167,850.71-44,167,850.7154,149,101.3554,149,101.3527,304,069.431,825,923.9214,800,155.27256,275,246.1036,625,204.198,043,541.498,043,541.4932,705,441.1332,705,441.13-24,661,899.647,595,197.247,595,197.24ItemCash paid for settling debtsCash paid for dividend andprofit distributing or interestpayingIncluding: Dividend andprofit of minority shareholderpaid by subsidiariesOther cash paid concerningfinancing activitiesSubtotal of cash outflow fromfinancing activitiesNet cash flows arising fromfinancing activitiesIV. Influence on cash and cashequivalents due to fluctuation inexchange rateV. Net increase of cash and cashequivalentsAdd: Balance of cash andcash equivalents at the period-beginVI. Balance of cash and cashequivalents at the period -end23,930,636.48809,191.9024,739,828.3829,409,272.9727,160.2527,429,901.3265,716,267.1493,146,168.4611,222,358.341,140,664.64660,000.0013,023,022.98-5,427,825.74-86,010.176,449,468.6486,462,727.3992,912,196.036. Cash Flow Statement of parent companyUnit: RMBI. Cash flows arising fromoperating activities:Cash received from sellingAmount in this periodAmount in last periodcommodities and providing laborservicesWrite-back of tax receivedOther cash receivedconcerning operating activitiesSubtotal of cash inflow arisingfrom operating activitiesCash paid for purchasingcommodities and receiving laborserviceCash paid to/for staff andworkersTaxes paidOther cash paid concerningoperating activitiesSubtotal of cash outflow arisingfrom operating activitiesNet cash flows arising fromoperating activitiesII. Cash flows arising frominvesting activities:Cash received from recoveringinvestmentCash received frominvestment incomeNet cash received from54,285,974.4073,068,096.21127,354,070.6134,724,904.6516,508,207.38547,525.581,408,794.8253,189,432.4374,164,638.1872,677,534.9539,608,076.47112,285,611.4261,482,546.1313,127,234.39660,099.7258,371,092.30133,640,972.54-21,355,361.121,820,000.00disposal of fixed, intangible andother long-term assetsNet cash received fromdisposal of subsidiaries and otherunitsOther cash receivedconcerning investing activitiesSubtotal of cash inflow frominvesting activitiesCash paid for purchasingfixed, intangible and otherlong-term assetsCash paid for investmentNet cash received fromsubsidiaries and other unitsOther cash paid concerninginvesting activitiesSubtotal of cash outflow frominvesting activitiesNet cash flows arising frominvesting activitiesIII. Cash flows arising fromfinancing activitiesCash received fromabsorbing investmentCash received from loansCash received from issuingbondsOther cash receivedconcerning financing activitiesSubtotal of cash inflow fromfinancing activitiesCash paid for settling debtsCash paid for dividend andprofit distributing or interestpayingOther cash paid concerningfinancing activitiesSubtotal of cash outflow fromfinancing activitiesNet cash flows arising fromfinancing activitiesIV. Influence on cash and cashequivalents due to fluctuation inexchange rateV. Net increase of cash and cashequivalentsAdd: Balance of cash andcash equivalents at the period-beginVI. Balance of cash and cashequivalents at the period -end0.0043,438,239.5343,438,239.53-43,438,239.5310,260,000.0010,260,000.0016,051.2016,051.2010,243,948.8040,970,347.4524,327,292.0665,297,639.511,820,000.001,409,696.911,409,696.91410,303.090.00617,120.00660,000.001,277,120.00-1,277,120.00-22,222,178.0351,315,321.0929,093,143.067. Consolidated Statement on Changes of Owners' EquityAmount in this periodUnit: RMBAmount in this periodOwners' equity attributable to the parent companyItemsPaid-upcapital(Sharecapital)CapitalreservesLess: ReasonaTreasur bley Stock reserveGeneralSurplus risk Retainereserves provisio d profitnOthersMinority’sequityTotalowners’equityI. Balance at the end of lastyear266,071,320.00281,233,795.4221,908,064.19-133,70 919,099.4,015.43 204,387.09436,432,650.47Add: Changes ofaccounting policyError correction ofthe last periodOthersII. Balance at the beginning ofthis yearIII. Increase/ Decrease in thisyear (Decrease is listedwith'"-")266,071 281,233,,320.00 795.4233,737.5921,908,064.19-133,70 919,099.4,015.43 2026,409,1 462,193.80.75 654,387.09436,432,650.4726,409,180.75(i) Net profit26,409,180.7526,409,180.75(ii) Other consolidated income33,737.59462,193.65495,931.24Subtotal of (i)and (ii)33,737.5926,409,1 462,193.80.75 654,387.0926,909,499.08(III) Owners' devoted anddecreased capital0.000.000.000.000.000.000.000.000.000.001. Owners' devoted capital2. Amount calculated intoowners' equity paid in shares3. Others(IV)Profit distribution0.000.000.000.000.000.000.000.000.000.001. Withdrawal of surplusreserves2. Withdrawal of general riskprovisions3. Distribution for owners(shareholders)4. Others(V) Carrying forward internalowners' equity0.000.000.000.000.000.000.000.000.000.001．Capital reserves conversed tocapital (share capital)2．Surplus reserves conversedto capital (share capital)3．Remedying loss withsurplus reserve4．Others(VI) Reasonable reserve1．Withdrawal in this period2．Usage in this period(VII) OtherIV. Balance at the end of thereport period266,071 281,267,,320.00 533.0121,908,064.19-107,29 1,381,294,834.68 2.854,387.09463,337,762.46Amount in last periodUnit: RMBAmount in last periodOwners' equity attributable to the parent companyItemsPaid-upcapital(Sharecapital)CapitalreservesLess: ReasonaTreasur bley Stock reserveGeneralSurplus risk Retainereserves provisio d profitnOthersMinority’sequityTotalowners’equityI. Balance at the end of lastyear266,071,320.00281,245,215.9621,908,064.19-179,91 655,017.4,183.54 314,387.09389,969,821.01Add: retroactiveadjustment arising fromenterprise consolidation underthe same controlAdd: Changes ofaccounting policyError correction ofthe last periodOthersII. Balance at the beginning ofthis yearIII. Increase/ Decrease in thisyear (Decrease is listedwith'"-")266,071 281,245,,320.00 215.96-11,420.5421,908,064.19-179,91 655,017.4,183.54 3146,210,1 264,081.68.11 894,387.09389,969,821.0146,462,829.46(i) Net profit46,210,168.1146,210,168.11(ii) Other consolidated incomeSubtotal of (i)and (ii)-11,420.54-11,420.54264,081.8946,210,1 264,081.68.11 89252,661.3546,462,829.46(III) Owners' devoted anddecreased capital0.000.000.000.000.000.000.000.000.000.001. Owners' devoted capital2．Amount calculated intoowners' equity paid in shares3．Others(IV)Profit distribution0.000.000.000.000.000.000.000.000.000.001．Withdrawal of surplusreserves2．Withdrawal of general riskprovisions3．Distribution for owners(shareholders)4．Others(V) Carrying forward internalowners' equity0.000.000.000.000.000.000.000.000.000.001．Capital reserves conversed tocapital (share capital)2．Surplus reserves conversedto capital (share capital)3．Remedying loss withsurplus reserve4．Others(VI) Reasonable reserve1．Withdrawal in this period2．Usage in this period(VII) OtherIV. Balance at the end of thereport period266,071 281,233,,320.00 795.4221,908,064.19-133,70 919,099.4,015.43 204,387.09436,432,650.478. Statement on Changes of Owners' Equity of Parent CompanyAmount in this periodUnit: RMBAmount in this periodItemPaid-upcapital(Sharecapital)CapitalreservesLess:TreasuryStockReasonable Surplusreserve reservesGeneralriskreserveRetainedprofitTotalowners’equityI. Balance at the end of last year266,071,32 279,118,660.00 8.6219,184,672.34-216,841,0 347,533,5873.34 7.62Add: Changes of accountingpolicyError correction of thelast periodOthersII. Balance at the beginning of266,071,32 279,118,6619,184,672-216,841,0 347,533,58this year0.008.62.3473.347.62III. Increase/ Decrease in thisyear (Decrease is listed with'"-")(i) Net profit(ii) Other consolidated incomeSubtotal of (i)and (ii)33,737.5933,737.5933,737.5915,592,503 15,626,240.23 .8215,592,503 15,592,503.23 .2333,737.5915,592,503 15,626,240.23 .82(III) Owners' devoted anddecreased capital0.000.000.000.000.000.000.000.001. Owners' devoted capital2．Amount calculated intoowners' equity paid in shares3．Others(IV) Profit distribution0.000.000.000.000.000.000.000.001．Withdrawal of surplus reserves2．Withdrawal of general riskreserve3．Distribution for owners(shareholders)4．Others(V) Carrying forward internalowners' equity0.000.000.000.000.000.000.000.001．Capital reserves conversed tocapital (share capital)2．Surplus reserves conversed tocapital (share capital)3．Remedying loss with surplusreserves4．Others(VI) Reasonable reserve1．Withdrawal in this period2．Usage in this period(VII) OtherIV. Balance at the end of the266,071,32 279,152,4019,184,672-201,248,5 363,159,82report period0.006.21.3470.118.44Amount in last yearUnit: RMBAmount in last yearItemPaid-upcapital(Sharecapital)CapitalreservesLess:TreasuryStockReasonable reserveSurplusreservesGeneralriskreserveRetainedprofitTotalowners’equityI. Balance at the end of last year266,071,32 279,130,080.00 9.1619,184,672.34-245,458,2 318,927,8707.79 3.71Add: Changes of accountingpolicyError correction of thelast periodOthersII. Balance at the beginning of266,071,32 279,130,0819,184,672-245,458,2 318,927,87this year0.009.16.3407.793.71III. Increase/ Decrease in thisyear (Decrease is listed with'"-")(i) Net profit(ii) Other consolidated incomeSubtotal of (i)and (ii)-11,420.54-11,420.54-11,420.5428,617,134 28,605,713.45 .9128,617,134 28,617,134.45 .45-11,420.5428,617,134 28,605,713.45 .91(III) Owners' devoted anddecreased capital0.000.000.000.000.000.000.000.001．Owners' devoted capital2．Amount calculated intoowners' equity paid in shares3．Others(IV) Profit distribution0.000.000.000.000.000.000.000.001．Withdrawal of surplus reserves2．Withdrawal of general riskreserve3．Distribution for owners(shareholders)4．Others(V) Carrying forward internalowners' equity0.000.000.000.000.000.000.000.001．Capital reserves conversed tocapital (share capital)2．Surplus reserves conversed tocapital (share capital)3．Remedying loss with surplusreserves4．Others(VI) Reasonable reserve1．Withdrawal in this period2．Usage in this period(VII) OtherIV. Balance at the end of the266,071,32 279,118,6619,184,672-216,841,0 347,533,58report period0.008.62.3473.347.62III. Company profile.Shandong Zhonglu Oceanic Fisheries Co., Ltd. (the “Company”) was incorporated as a joint stocklimited company in the People’s Republic of China on July 30, 1999 according to thedocumentation of Lu Ti Gai Zi [1999] No.85 issued by Shandong Development and ReformCommission, and the holding company of the Company is Shandong Fisheries Enterprise GroupGeneral Corporation. On June 26, 2000, the Company issued 120 million domestic listed foreignshares (B shares) to foreign investors with face value of one RMB Yuan per share according to thedocumentation of Zheng Jian Fa Xing Zi [2000] No.82 issued by the China Securities RegulatoryCommission. The B shares have been listed on the Shenzhen Stock Exchange since July 24, 2000.On August 22, 2000, by the Company’s authorization, lead underwriters fully exercised the 15%over-allotment option and issued 18 million B shares to foreign investors with face value of 1 Yuanper 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 (occupying 47.25% of the total sharecapital of the Company) held by Shandong Fisheries Enterprise Group General Corporation(“Fisheries Group”) have been frozen by the judiciary, including: A. Fisheries Group providedguarantee for the loan of 11,700,000 Yuan for a subordinate company, but the subordinate companyfailed to repay the loan on time, so Shandong Yantai Intermediate People's Court froze 8,000,000shares (occupying 3% of the total share capital). B. Fisheries Group borrowed 73,580,680 Yuanfrom the Agricultural Bank of China Jinan Lixia branch, and Jinan Lixia Court froze 80,000,000shares (occupying 30.07% of the total share capital).On December 10, 2006, 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) ofShandong Silver Star Auction Ltd., Shandong State-owned Assets Investment Holdings Ltd. boughtthe shares at the price of 48,400,000 Yuan. Holding 33.07% of the total share capital, ShandongState-owned Assets Investment Holdings Ltd. then became the largest shareholder of the CompanyOn June 20, 2007; relevant transfer procedures have been completed.Fisheries Group borrowed 73,344,932 Yuan from Bank of China Jinan branch (the creditor of theloan 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 (occupying 14.18% of the total sharecapital). On June 7, 2005, the above 37,731,320 shares were auctioned publicly, According to theauction transaction confirmation (Lu Rui Cheng Zi [2005] No.013) of Shandong Lu Rui FengAuction Ltd., Shandong Luxin Investment Holdings Ltd. bought the shares at the price of 8,760,000Yuan. On February 2, 2007, relevant transfer procedures have been completed.Corporate industry: overseas fishing industry.Corporate major products: tuna and its products.Corporate registered address: 43 Heping Road, Jinan, Shandong Province, the 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 unloadservices; housing lease.Corporate basic organization structure: Board of shareholders, Board of directors, office of thegeneral manager, departments of human resources, finance, corporate operation, overseasmanagement, real estate, and the office of auditory supervision. Three branches are ShandongZhonglu Overseas Qingdao Haiwei Branch, Shandong Zhonglu Overseas Qingdao Haiyan Brsnch,and Shandong Zhonglu Overseas Qingdao Refrigeration Branch. Three wholly-owned subsidiariesare Shandong Zhonglu Overseas Fishery Transportation, Shandong Zhonglu Overseas (Yantan)Food Co., Ltd., and HABITAT INTERNATIONAL CORP. The operation entity –YAW ADDOFISHERIES COMPANY LIMITED, is controlled by operation lease.IV．．Main accounting policies, estimation and previous errors1. Preparation basis of Financial StatementsThe Financial Statements of the Company are based on continual operations, in line with actualtransactions and events, and pursuant to requirements of Corporate Accounting Principles – BasicPrinciples, and the No. 38 specific principle, released by the Treasury Ministry on 15th February2006, and the application guidance, interpretation and other relevant rules released consequentlyand based on the following important accounting policies and estimation.2. Declaration of obedience to corporate accounting principlesThe Financial Statements are up to requirements of corporate accounting principles and also a trueand thorough reflection to the relevant information as the Company’s financial position dated 30thJune 2012 and the operation results as well as cash flow in period of first half year of 2012.3. Accounting periodThe Company’s accounting year is Gregorian calendar year, namely from 1st January to 31stDecember of every year.4. Bookkeeping standard currencyThe RMB is taken as the bookkeeping standard currency.5. Accounting methods for consolidation of enterprises under the same control or otherwise(1) Consolidation of enterprises under the same controlAs for the consolidation of enterprises under the same control, the assets and liabilities received bythe consolidating party in the consolidation are measured on the book value of the consolidatedparty on the consolidation day.(2) Consolidation of enterprises not under the same controlAs for the consolidation not under the same control, the consolidation cost is the fair value of theassets paid, liabilities incurred or committed, and equity securities offered, for obtaining the controlright 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 forand directly related to the consolidation are reckoned into the corporate consolidation cost. Forthose agreements that made in consolidation contracts for future events which might haveinfluenced on consolidation cost, on purchased day, if the estimated future events probably going tooccurred and the influence amount on consolidation cost should be calculated reliably, thanreckoned into consolidation cost.As for acquiree that obtained by consolidation under same control, the qualified confirmation ofidentified assets, liability and contigency liabilities should calculated by fair value on day ofpurchsaed. If the consolidation cost larger than the fair value amount of indentified net assts fromacquiree’s, the differences should be recognized as goodwill. If teh consoldiation cost less than thefair value amount of indentified net assts from acquiree’s, the differences should reckoned intocurrent gains/losses after re-examination.6. Preparation methods for consolidated financial statements(1) Preparation methods for consolidated financial statementsIncluded in the consolidation scope are the subsidiaries over which the Company has the controlright or the entities for which the Company has the special purpose.As the Company’s financial statements are prepared pursuant to the No. 33 Corporate AccountingPrinciples – Consolidated Financial Statements and relevant rules, all substantive inside transactionsand 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 specificallylisted as the minority shareholders’ equity in the shareholders’ equity.As for the inconsistency between the subsidiaries and the Company in the accounting policies andperiods, the necessary adjustment is made on the subsidiaries’ financial statements in thepreparation of the consolidated financial statements according to the Company’s accounting policiesand periods.As for the subsidiaries obtained in the consolidation of enterprises not under the same control, theadjustment is made on the individual financial statements on the basis the fair value of theidentifiable assets on the purchase day. As for the subsidiaries obtained under the same control, theconsolidation is regarded as starting at the Year-beginning of the consolidation period, and theassets, liabilities, operation results and the cash flow are reckoned into the consolidated financialstatements from the year-beginning in the consolidation period.(2)Disclosing the relevant accounting methods on buying to selling or selling to buying in two successivefiscal year for subsidiaries obtained under the same control7. Determination criteria of cash equivalent in cash flow statementsThe cash recognized in the preparation of the cash flow statements, is the Company’s storage cashand deposits available for payment anytime.The cash equivalents recognized in the preparation of the cash flow statements, are investment ofshort-term (due in three months from the purchase day), strong mobility and easy transfer to knownsum cash, and slight risk of value vibration, held by the Company.8. Foreign currency exchange and the conversion of the foreign currency statements(1) Conversion of business with foreign currencyThe foreign currency exchange is booked on the current exchange rate on the transaction day andconverted in the bookkeeping standard currency.On the balance sheet day, the monetary items are converted on the current rate on the balance sheetday, concerning the exchange differences between teh spot exchange rate on that date and initialconfirmation or the sport exchange rate on previously balance sheet date, should reckoned in tocurrent 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 originalbookkeeping rate with the sum of the bookkeeping standard currency unchanged. Items ofnon-monetary foreign currency which was calculated by fair value, should converted by spotexchange rate on the confirmation day of fair value, difference betweent the converted amount ofbookkeeping currency and original amount of bookkepping currency, was treated as changes of fairvalue (including exchange rate changed) reckoned into current gains/losses or recognized as otherconsolidated income and reckoned into capital public reserve.(2) Conversion of foreign currency financial statementsUpon the conversion of the foreign currency financial statements of the controlling subsidiaries,joint enterprises, and the affiliated enterprises on the bookkeeping standard currency different fromthe Company’s, the accounting check and preparation of the consolidated financial statements aremade.Assets and liabilities items in the balance sheet, are converted on the current rate on the balancesheet day; owners’ equity items besides the “un-distributed profit” item, the other items areconverted on the actual rate. Incomes and expenses items in the profit statement are converted onthe current rate. The conversion difference of the foreign currency financial statements is listedspecifically in the owners’ equity in the balance sheet.The foreign currency cash flow is converted on the current rate on the cash flow actual day. Thecash 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 tothe foreign operation is transferred in proportion into the disposal of the current loss/gain.(2)9. Financial instruments(1) Categories of financial instrumentsThe 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 fairvalue and with its changes reckoned into the current loss/gain (including tradable ones and onesdesignated 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 ofthe financial assets besides account receivables are dependent on the holding intention and purposeof the Company and its subsidiaries for the financial assets.In the initial recognition, the financial liabilities are classified as the financial liabilities measuredon the fair value and with its changes reckoned into the current loss/gain (including tradable onesand ones designated to be measured on fair value and with its changes reckoned into the currentloss/gain), other financial liabilities.As the Company becomes one party of the financial instrument contract, the instrument isrecognized as one financial asset or liability.Recognition and measurement of financial instrumentsIn the initial recognition, the financial assets or liabilities are measured on fair value; and thefollow-up measurements are: financial assets and financial assets available for sale that measuredby fair value and with alteration reckoned into current gains/losses together with teh financialliabilities that measured by fair value with alteration reckoned into current gains/losses shouldmeausred by fair value; financial guarantee contract and loan committments, loan by the rates lowerthan market rates, should conducted follow-up measurement by the higher ones between confirmedamount recognized by”No,13 Accounting Rules for Enterprises—Contingency” after initialconfirmation and balance of initial confirmed amount deducting the accumulated amortizationamount, based on “No. 14 Account Rules for Enterprises—Income”; 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 andliabilities, besides one related to the hedge, is dealt with in the following methods: ①The financialassets or liabilities measured on the fair value and with its changes reckoned into the currentloss/gain, are reckoned into the fair value loss/gain; the interest or cash dividend obtained in theassets holding period, is recognized as the investment return; in disposal, the difference between thesum actually received and the one booked initially, is recognized as the investment return with theloss/gain of the fair value change adjusted. ②The fair value change of the financial assets availablefor sale, is reckoned into the reserve; the interest on the actual rate in the holding period, isreckoned into the investment return; the cash dividend of the stock instrument available for sale isreckoned into the investment return when the invested unit announces to pay the dividend, isreckoned into the investment return; in dividend, the difference between the sum actually receivedand the book value in deduction of the accumulative fair value change originally booked into thecapital reserve.(3) Recognition basis of and measurement method for the financial assets transferThe Company’s recognition basis of the financial assets transfer: As for the financial assets with allrisks and compensations on their patent transferred, or all risks and compensations neithermaintained nor transferred but the control over the assets given up, the recognition of the financialasset may terminate.The Company’s measurement of the financial assets transfer: For the financial assets are qualifiedfor the recognition termination conditions, the measurement may be taken on the financial assetstransfer, namely the difference is reckoned into the current loss/gain, between the book value of thetransferred financial assets and, the total of the consideration value received from the transfer andthe 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 fairvalue between the part of recognition termination and the part of no recognition termination, and thedifference is reckoned into the current loss/gain, between the book value of the part of recognitiontermination and, the total of the consideration value of the part of recognition termination and thefair value change accumulative sum originally booked into the capital reserve.(4) Recognition termination conditions of the financial liabilitiesThe Company’s recognition termination conditions of the financial liabilities: For the currentobligation of the financial liabilities is relieved whole or partly, the recognition of the financialliabilities or part may be terminated.(5) Recognition methods of the fair values of the financial assets and liabilitiesThe Company’s recognition methods of the fair values of the financial assets and liabilities: as forthe financial instrument in the active market, its fair value is recognized on the quotation in theactive market; as for the financial instrument in the active market, its fair value is recognized by theevaluation method.The evaluation method consists of as the references to the familiar situation and the price in thelatest market transaction between the two voluntary parties, and the references to the current fairvalue of other substantially same financial assets, and the conversion method of the cash flow. Inthe evaluation method, the market index is the preferential and uttermost use, and the indexspecifically related to the Company and its subsidiaries is in less use.(6) Impairment of financial assetsOn the balance sheet day, the impairment check is taken on the book value of the financial assetsbesides the ones measured on fair value and with changes reckoned into the current loss/gain, andas there is objective evidence to the financial assets impairment, the impairment test may be takenon 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 performingtest in combination of fianncial assets that with similar charateristic of credit risk. If no impairmentfound in independent test for those financial assets( including financial assets with single major andminor amount), consolidated into the combination of fianncial assets with similar charateristic ofcredit risk found for impairment testing again. If impairment found in those fianncial assets, thennot goting to consolidated into the combination of fianncial assets with similar charateristic of creditrisk found for impairment testing.If impairment found in investment held to maturity, loans and account receivable, calculated theirbook value to the current value of predicted future cash flow, the less reckoned amount wasrecognized as impairment losses and reckoned into curren gains/losses. If impairment found infinancial assets available for sale, transfer-out the accumulated losses, reckoned into capital publicreserve before, for fair value decreased, and reckoned into current gains/losses, the accumulatedlosses 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.(7) Re-classification of financial assetsMain judgment basis of the re-classification of the undue long-term investment as financial assetsavailable for sale1) 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 forholding the financial assets due;4) And other indications to the Company’s incapability for holding due.The re-classification of the undue long-term investment as financial assets available for sale may bedecided by the approval of the Board of Directors.10. Account receivableThe account receivables in the Company mainly consist of the bill receivable, long-term accountreceivable, and other account receivable. On the balance sheet day, if there is objective evidence tothe actual impairment, the impairment loss is recognized on the difference between the book valueand the current value of the estimative future cash flow.(1) Account receivable with single major amount and with bad debt provision withdrawalsinglyJudging basis or amountstandards for major singleamountWithdrawal method for major singleamount and withdrawal bad debtprovision singlyAccount receivable with over 1 million yuan(including 1million yuan)Above three years, according to 100% counting and drawing ofreceivables balance(2) Account receivable of bad debt provision withdrawal by combinationsAccrued method for badName of combinationsEnsuring basis of credit riskfeature combinationAccrued method for credit riskfeature combinationdebt provision withdrawal bycombinationsAccount age combinationAccount age combinationCombination basis recognizedReceivables above three years accountAbove three years, according to 100% counting and drawingof receivables balanceIn combination, withdrawing bad debt provision by age analysis:√ Suitable □ UnsuitableAccount yearsWithin one year(I yearincluded)Within six monthsSix months---one yearAccrued proportion of accountsreceivable (%)5%10%Accrued proportion of other accounts receivable (%)5%10%1－2years2－3yearsOver three years3－4years4－5yearsOver five years30%50%100%100%100%100%30%50%100%100%100%100%In combination, withdrawing bad debt provision by balance percentage√ Suitable □ UnsuitableIn combination, withdrawing bad debt provision by other methods√ Suitable □ Unsuitable(3) Account receivable with single minor amount but withdrawal bad debt privision singlyReasons for withdrawal bad debt prevision singly:Accrued method for bad debt provision:11. Inventory(1) Categories of inventoryThe inventory is goods or manufactured products held for sale, products in process, and materialsand 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-finishedproduct, and manufactured product (storage goods).(2) Pricing method for inventory delivery□ FIFO √ method of weighted mean □ method of individual identify □ others(3) Recognition principle on net recognizable value and accrual method for preparation forinventory price fall-downOn the balance sheet day, the inventory is measured on the lower one between the cost and the netrecognizable value, and the provision for the price fall-down is accrued on each inventory item;however, as for the inventory of large quantity and low price, the provision is accrued on theinventory category.Recognition principle on net recognizable value of inventory: ① net recognizable value as theestimative sale price less the relevant tax expenses. ② as for the materials held for production, if thenet recognizable value of the manufactured product in use of the materials, is higher than the cost,the net recognizable value is measured on cost; as the fall-down of the material price shows that thenet recognizable value of the manufactured product is lower than the cost, recognizable value isrecognized on the estimative sale price less the estimative will-be actual cost, estimative saleexpenses, and relevant tax expenses.③ As for the materials held on sale, the net recognizable valueis the market sale price.(4) Inventory system√ Perpetual inventory system □ terminal inventory taking□ others(5) Dilution method for the consumable low-value product and packaging materialAs for the consumable low-value product and the turn-over material, they are diluted in five-fivemethod.12. Long-term stock investment(1) Recognition of the initial investment cost① initial investment cost of long-term stock investment obtained by corporate consolidation: in thecase of the consolidation of enterprises under the same control, recognized as the initial cost is thebook value of the owners’ equity obtained from the consolidated party; in the case of theconsolidation of enterprises not under the same control, recognized as the initial cost is therecognized consolidation cost on the purchase day.② As for the long-term stock investment obtained by cash payment, the initial investment cost isthe actual purchase payment.③ As for the long-term stock investment obtained by the equity securities offering, the initialinvestment cost is the fair value of the equity securities.④ As for the long-term stock investment invested in by the investors, the initial investment cost isthe value in the contract agreement.⑤ As for the long-term stock investment obtained by the exchange of the non-monetary assets andthe debts restructuring, the initial investment cost is recognized on the relevant rules in thePrinciples.(2) Follow-up measurement and loss/gain recognition methodThe follow-up measurement of the long-term stock is on equity or cost. As for the long-term stockinvestment on equity, the investment return is recognized on the share of the net loss/gain deservedor distributed; upon the calculation of the deserved share of the profit and cash dividend announcedto be distributed, the book value of the long-term stock investment is decreased correspondingly.As for the long-term stock investment on equity, the book value remains unchanged, besides theinvestment added or withdrawn. Upon the calculation of the deserved share of the profit or cashdividend announced to be distributed, the investment return is recognized.As for the long-term stock investment of common control and significant influence, it is checked onequity; and others are checked on cost.(3) Recognition principle on common control over and significant influence on invested unit① Recognition principle on common control over invested units: the common control is agreed inthe contract or agreement by the two or more joint parties that the accounting and operation policymust be decided commonly by the two or several investment parties.② Recognition principle on the significant influence on invested unit: As above 20% to 50% votecapital is held in the invested unit, the significant influence is recognized; or as 20% below is held,the significant influence is recognized if the following conditions are matched up to:①there is representative in the invested unit’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 invested company’s technology or technologic materials;⑤and other situations which can prove fully the significant influence on the invested unit(4) Test method for impairment test and accrual method for impairment provisionOn the balance sheet day, the check is taken on the long-term stock investment to make surewhether there is the indication to the impairment; once there is, the impairment test is taken torecognize the recoverable, and then the provision for the impairment is accrued on the lower onebetween the book value and the recoverable; once the impairment loss is accrued, it may not betransferred 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 thefair transaction, it is on the agreement price less the relevant tax expense; or there is no fairtransaction agreement but the active market for similar assets, it is on the market price less relevanttax expense.13. Investment real estate(1) Category of and measurement method for real estateCategory of the Company’s investment real estate: rented land use rights, rented buildings and landuse rights held for transfer after appreciation.Investment real estate of the Company is initially measured by cost and conducting follow-upmeasures by cost mode.(2) Principle of check on costAccrued on the year averaging is the depreciation of the lease buildings in the Company’sinvestment property. The detailed check principle is same as that of the capital assets.The rented land use rights and land use rights held for transfer after appreciation owned by theCompany were adopted line amortization method. Detail calculation policy was similar tointangible assets.On balance sheet day, examing impairment evidence on investment real estate, if found evidence ofimpairement, than conducted impairment test and confirmed its recovered amount. Withdrawalimpairment provision by lower amount between its book value and recovered amount, theimpairment losses should be transfer-back in subsequent accounting period while been accrued.14. Capital assets(1) Recognition conditions of capital assetsThe capital 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 followingconditions, they are recognized:①The economic interest related to the capital assets probably flow into the Company;②The cost of the capital assets can be measured reliably.(2) Recognized basis and valuation method for fixed assets that rent-in by financingRecognized basis for fixed assets that rent-in by financing: rents that transfer all risks andremuneration relted to assets ownership actually. Detail recognition for follow one item or moreitem 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 farlower than the fair value of rented assets that exercise option rights by prediction, the option rightswas reaonably recognized on date of renting for lessee; ③thought no ownership transfer, rentperiod takes majority time of the useful life of rented assets; ④ current value of the minimun rentedamount payment on date of renting is almost equals to the fair value of rented assets on starting dayof purchasing; ⑤ rented assets owes special natures, lessee should not be used this rented asstes ifno major changes on this assets.Valuation method for fixed assets that rent-in by financing: initial valuation for the fixed assetsrent-in by financing was used the lower ones between faire value of rented assets on starting day ofpurchasing and minimum rented payment for bookkeeping value;Follow-up valuation for fixed assets that rent-in by financing was used the similar depreciationpolicies of self-owned fixed assets withdrawal depreciation and impairment provision.(3) Category of and accrual method for capital assets55The Company’s capital assets are mainly divided as: house buildings, ships & machines & fishingequipment, furniture & office equipment, transportation equipment; the depreciation is in yearaveraging method. The service life and the net estimative remnant are recognized on the nature andutilization of the capital assets; and at the year-end, the service life, net estimative remnant, and thedepreciation method, of the capital assets, are checked, and the corresponding adjustment is made ifthere is inconsistency between the checked ones and the previous ones. The depreciation of all ofthe Company’s capital assets is accrued, besides the ones sufficiently accrued and in continuous use,and the land booked specifically.categoryHouse and buildingMachine equipmentDepreciable life（year）20-408-20Salvage rate（%）3-5%3-5%Annual depreciation rate（%）2-5%5-12%Electronic equipmentTransporting equipmentFurniture & Office equipment3-5%3-5%19-19%19-19%Ship15-203-5%5-6%Other equipmentsFinancing rent fixed assets：------including：House and buildingMachine equipmentElectronic equipmentTransporting equipmentOther equipments(4) Test method for impairment of capital assets, and accrual method for provision of impairmentAt balance sheet day, fixed assets have been examined by the Company whether there existevidence of impairment probably, while impairment evidence be found than impairment test shallbe performed and recognized its recoverable amount. Take the lower one between the book valueand recoverable amount for impairment provision withdrawal, the withdrawal impairment lossesshall not be switch back in subsequent fiscal year.The recoverable amount of fixed assets was recognized as the higher one between the net amountresuled from faire value of assets minor disposal charges and current value of predicted future cashflows. If there exis sales agrement price within fair transaction, net amount resulted from faire valueof assets minor disposal charges should recognized as the amount resulted from sales agreementprice minor disposal charge directly attributable to this asses; if exits no sales agrement price withinfair transaction but exits active market or similar transaction price in assets, then recognized by theamount resulted from market price minor disposal charge.(5) Other explanations15. Projects under construction(1) Category of projects under constructionThe Company’s projects under construction are divided as the self-support and contract-outconstruction.(2) Principle and time point of transfer of projects under construction to capital assetsPrinciple and time point of transfer of projects under construction to capital assets: as the projectcompletion reaches the expectant availability, the capital assets is transferred. Judgment principle onexpectant availability: if following cases is matched up to:① The substance construction (installation included) of the capital assets has completed all orbasically;② As the projects have been in test production or operation, and the results show that the assets canoperate properly and produce the qualified products stably, or the test operation result shows theassets can operate or open properly.③ The expenditure of the capital assets on the construction, is a little or little.④ The capital assets of the project constructed have been up to the requirements of the design orcontract, or basically up to.(3) Test method and provision accrual method, for impairment of projects under constructionOn the balance sheet day, the check is taken on the projects under construction for the indication tothe impairment, and if there is the indication, the impairment test is taken to recognize therecoverable, and the impairment provision is accrued on the lower one between the book value andthe recoverable; once the impairment loss is accrued, it cannot be transferred back in the futureaccounting periods.The recoverable is recognized on the higher one between the net of the assets fair value less thedisposal expenses, and the current value of the assets estimative future cash flow.16. Borrowing expenses(1) Recognition principle on capitalization of borrowing expensesAs for the Company’s actual borrowing expenses directly attributable to the assets construction orproduction, it is capitalized and reckoned into the relevant assets cost; as for other borrowingexpenses, it is recognized on the actual sum and reckoned into the current loss/gain. The assets upto the capitalization are assets as the capital assets, investment real estate, and inventory reachingthe expectant availability or sale ability.(2) Recognition method for capitalizationCapitalization period: the period from the time point of starting to that of ending, of thecapitalization of the borrowing expenses. The temporary capitalization cease period is not included.(3) Temporary capitalization cease periodTemporary capitalization cease period: the capitalization of the borrowing expenses may be stoppedtemporarily if there is incidence of the irregular interruption and above 3 months.(4) Calculation of capitalization sumCalculation of capitalization sum: ① As for the borrowing of the specific borrowing, thecapitalization sum is recognized on the current actual interest expenses less the interest income ofthe borrowing capital not utilized but deposited in the bank or the return of the temporaryinvestment; ② As for the appropriation of the general borrowing, the capitalization sum isrecognized on the weighted average of, the accumulative assets expenditure above the specificborrowing, and times the capitalization rate of the appropriation; ③ As for the discount or premiumof the borrowing, the discount or premium to be diluted in every accounting period is recognized inthe actual rate method.The actual rate method is the method for the measurement of the diluted discount or premium orinterest 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 theborrowing.17. Organism property18. Oil gas property19. Intangible assets(1) Pricing method for intangible assetsThe Company’s intangible assets are measured initially on cost. The intangible assets purchased inare taken as the actual cost on the actual payment and relevant expenditure. As for the intangibleassets invested in by the investors, the actual cost is recognized on the value stipulated in thecontract 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 isthe actual total expenditure before reaching the expectant purpose.The follow-up measurements of the Company’s intangible assets respectively are: ①the lineardilution is taken on the intangible assets of finite service life, and at the yea-end, the check is takenon the service life and dilution of the intangible assets, and the corresponding adjustment is made ifthere is inconsistency with the previous estimative ones. ② As for the intangible assets of uncertainservice life, it is not diluted, however, the service life is checked at year-end; If there is solidevidence to its finite service life, its service life is estimated and diluted in linear method.(2) Estimation of service life of intangible assets of finite service lifeAs the service life of the intangible assets of finite service life is estimated, the following factors areconsidered usually: ① the ordinary service life period of products produced by the assets, and theavailable information of the service life of the similar assets; ② the present situation of thetechnology, craftsmanship, etc. ③ the market demand for the products produced by the assets andthe labor supply; ④ the expectable actions taken by the present or potential competitor; ⑤expectant maintenance expenditure for the assets’ ability to bring forth the economic interest; ⑥relevant law rules or similar restrictions on control period of the assets; ⑦ relevancy with theservice life of other assets held by the Company.itemPredicable using lifebasis(3) Recognition principle of uncertain service lifeRecognized as the intangible assets of uncertain service life is refers to those intangible assets ofun-expectable period of economic benefits brought into the Company, or of the uncertain serviceperiod.Recognition principle of uncertain service life: ① from contract right or other legal rights, theuncertain service period is stipulated in the contract or law; ② After the integration of the situationsand relevant expertise argumentation in the same trade, the period of the economic interest broughtinto 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 inbottom-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) Test method for and provision accrual method for impairment of intangible assetsOn 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 onthe lower one between the book value and the recoverable; once the impairment loss is accrued, itmay not be transferred back in future accounting periods.The recoverable amount on intangible assets shall recognized as the higher one between the fairvalue of assets less net amount which have been disposal and current value of future predicted cashflow.(5) Specific standard of research and development stage of dividing the company internal research and development projects(6) Accounts on spending of internal research and development projects20. Long-term unamortized expenseThe Company’s long-term unamortized expenses 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 thelong-term unamortized expenses cannot enable the accounting period’s beneficiary, all dilutionvalues of the project undiluted yet, are transferred into the current loss/gain.21. Property transfer of buy-back condition22. Projected liabilities(1) Recognition principle on projected liabilitiesThe liabilities are the Company’s actual liabilities, and its fulfillment probably causes the outflow ofthe economic interest; as the sum of the liabilities can be measured reliably, the liabilities arerecognized as the projected liabilities.(2) Measurement method for projected liabilitiesThe initial measurement is taken according to the best estimator of the expenditure necessary for thefulfillment of the relevant current liabilities; if the necessary expenditure is of a continual scope andof a same chance of all results within the scope, the intermediate value is recognized as the bestestimator; if several items are involved in, the best estimator is recognized according to all likelyresults and relevant possibilities.On the balance sheet day, the check is taken on the book value of the estimative liabilities, and theadjustment is made on the book value according to the current best estimator if there is solidevidence to the inability of the book value for the true reflection to the current best estimator.23. Stock payment and stock instrument(1) Types of stock payingThe stock payment is the transaction, of the grant of the stock instrument liabilities for obtaining theservice supply from the staff or other parties, or of assumption of liabilities recognized on the basisof the stock instrument, including two ways as equity and cash settlement.(2) The fair value of the stock instrument is recognized in the following methods: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 thereference to the price used in the latest market transaction between the parties familiar to situationsand voluntary to the transaction, and the reference to the current value of other financial instrumentssubstantially same, discount of cash flow and the option pricing model.(3) Basis of confirming the vesting rights best estimate tools(4) Relevant accounting treatment of implement, modification and terminate shares payment plan24. Buy-back our company stock25. Income(1) The specific judgment standard of sales goods income checking timeThe income of the sales goods is recognized on the sum of the contract or agreement price receivedor deserved by the purchaser, as the Company’s sales goods are up to all of the following conditions:① All major risks and compensations on the goods ownership have been transferred to the purchaseparty; ② There is neither the maintaining of the continuous management right related to theownership nor the effective control over the goods sold out; ③ The income can be measuredreliably; ④ Relevant economic interests probably flow into the corporation; ⑤ The relevant actualor will-be-actual cost can be measured reliably.The take-in of the contract or agreement price is deferred; as for the financing one, the income ofthe sales good is recognized on the fair value of the contract or agreement price.(2) The basis of determining relinquishment of assets accessThe relinquishment of the assets access is recognized as the inflow and income of the economicinterest related to the relinquishment can be measured reliably.(3) By finishing percentage method, affirm the income of providing service and constructioncontact and determine the basis and method of completion of the contract scheduleAs the result of the transaction of the labor supply can be measured reliably on the balance sheetday, the income of labor supply is recognized on the percentage of the work completion. TheCompany will provide progress of the construction of labor transaction (percentage of theimplementation) based on finished measurements.As the result of the transaction of the labor supply cannot be measured reliably on the balance sheetday, the income of the labor supply is dealt with respectively in the following cases: ① As theactual cost of the labor service is expected to be compensated for, the income of labor supply isrecognized on the actual cost of the labor service, and the cost of the labor service is settled andtransferred on the same sum. ② As the actual cost of the labor service is not expected to becompensated for, the actual labor cost is reckoned into the current loss/gain, without the recognitionof the income of the labor supply.26. Government subsidy(1) Category of government subsidyThe categories of the government subsidy mainly consist of the two ones respectively related to theassets and the income.(2) Accounting dealing with government subsidyThe government subsidy related to the assets is recognized as the deferred income and sharedaveragely in the service life of the relevant assets, and reckoned into the current loss/gain. Thegovernment subsidy measured on token sum is directly reckoned into the current loss/gain. Thegovernment subsidy related to the income, is dealt with respectively in the following cases: ① Asfor the one for the compensation for the future corporate relevant expenses or loss, it is recognizedas the deferred income, and reckoned into the current loss/gain. ② As for the one for thecompensation for the actual relevant corporate expenses or loss, it is directly reckoned into thecurrent loss/gain27. Assets and liabilities of deferred income tax(1) The basis of affirming deferred income tax assetsThe Company’s assets and liabilities of deferred income tax are recognized as follows:(1) They are recognized on the difference between the book value of the assets or liabilities and thetaxation basis (as for the items not as the assets or liabilities and with the taxation basis able torecognized on tax rules, the taxation basis is recognized as the difference), the assets or liabilities ofdeferred income tax is recognized on the applicable rate in the estimative period of recovering theassets or paying off the liabilities.(2) The assets of deferred income tax are recognized with the limit of taxable income probablyobtained and used for the deduction of deductible temporary difference. On the balance sheet day,the unrecognized assets of deferred income tax in the previous accounting period are recognized ifthere is solid evidence for probably obtaining in the future accounting period sufficient taxableincome for deducting the deducible temporary difference. The book value of the assets of thedeferred income tax is deducted if there is solid evidence for probably not obtaining in the futureaccounting period sufficient taxable income for deducting the book value of the assets of deferredincome tax.(3) As for the taxable temporary difference related to the investment in the subsidiary or affiliatedcorporation, it is recognized as the deferred liabilities, unless the transfer-back time of thetemporary difference can be controlled and the difference probably cannot be transferred in theexpectable future. As for the taxable temporary difference related to the investment in the subsidiaryor affiliated corporation, it is recognized as the assets of deferred income tax as the temporarydifference is probably transferred back in the expectable future and the taxable income fordeducting the deducible temporary difference is probably obtained.(2) The basis of affirming deferred income tax liabilities28. Operating lease, finance lease(1) Accounting for operating leaseIf all risks and compensations related to the ownership of the lease assets are transformed into thelessee substantially in the lease terms, the lease is financing lease; and others are operation lease.(2) Accounting financing leaseIf all risks and compensations related to the ownership of the lease assets are transformed into thelessee substantially in the lease terms, the lease is financing lease; and others are operation lease.29. Holding of assets on sale(1) Recognition principle on holding of assets on saleThe following conditions are all matched up to: the resolution on the disposal of the assets has beenmade; the un-relievable transfer agreement is singed between the Company and the transfer party;and the transfer is to be accomplished within a year.(2) Accounting dealing with the holding of assets on saleAs for the capital assets held, the net estimative remnant of the capital assets may be adjusted forthe reflection of the remnant to the sum of the fair value less the disposal expenses, without abovethe limit of the previous book value of the capital assets as up to the conditions of holding assetson sale; And the difference of the previous book value above the net estimative remnant adjusted isreckoned into the current loss/gain.VAT7%25%As for the holding of other non-current assets on saleable, they are dealt with on the aboveprinciples; they consist of the single assets and the disposal group; the disposal group is a group ofassets which is sold as a whole or disposed together.30. Asset securitization31. Hedge accounting32. changes in accounting policies and estimationWhether there is changing in accounting policies and estimation□ Y √ N □ unavailable(1) changes in accounting policiesWhether there is changing in accounting policies□ Y √ N □ unavailableWhether there is changing in accounting estimation□ Y √ N □ unavailable33. Correction of previous accounting errorsWhether there is correction of previous accounting errors□ Y √ N □ unavailable34. Preparation of other major accounting policy, accounting estimates and financial statementsV. Taxes(I) Major tax and tax rate:TaxesTax basisTax rateOutput tax less deductable input tax 17%,13%Consumption taxCity maintenance taxEducational surtaxEducational surtaxEducational surtaxLeasing incomePayable turn-over taxPayable turn-over taxPayable income tax3%,5%The income Tax rate of each branch and the executive branchPursuit to the Provisional Regulations of the People’s Republic of China on Enterprise Income Tax,the Company and its China-founded subsidiaries withdrawal the enterprise income tax based on the25% of taxable amount.(II) Tax preference and approval document(1) Tax preference of added value taxPursuant to the Treasury Tax (1997) No. 64 Notice on Taxation on Import of Fishery Equipment andTransport-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 domesticsales are attributable to the primary agricultural products sales, and free from added-value taxaccording to the specific rules of added value tax.(2) Income tax preference:Pursuant to rules of Treasury Tax [1994] No. 001 , Treasury Tax [1997] No. 114 , Treasury Agriculture [2010] No. 104 , President Order ofPeople’s Republic of China [2007] No. 63 < Corporate Income Tax Law of People’s Republic ofChina>, the Company’s income from the overseas fishing business is corporate income tax free.The Company’s income besides one from the overseas fishing business is taxed on 25% for thecorporate income tax.The subsidiary – Shandong Zhonglu Overseas (Yantan) Food Co., Ltd—is a foreign investmentcorporation, is implemented the tax preference policies of “Two-free, Three-reduction” onaccording to the original , but has notenjoyed the preference yet because of no profit, according to the rules of tax preference policies inthe transitory period of new , with the preference period starting from2008. Applicable tax rate for 2010 was 22%, 24% for 2011 and 25% for 2012. The rate forenterprise income tax of 2011 was executed by 12% actually.(3) Other explanationsIV. Corporate consolidation and consolidated financial statementsGlobal statement of amalgamation and combined financial:The subsidiary of the actual control over and the entity of the special purpose for, are included intothe scope of consolidated financial statements.The Company’s consolidated financial statements are prepared on the , and all substantive inside transactions anddealings within the consolidation scope are balanced out in consolidation. As for the part of theshareholders’ equity of the subsidiaries not attributable to the parent company, it is listed asminority shareholders’ equity in the shareholders’ equity in the consolidated financial statement.As for the inconsistency in the accounting policies or periods between the subsidiary and theCompany, the necessary adjustment is made the subsidiary’s financial statement according to theCompany’s accounting policies or periods in the preparation of the consolidated financial statement.As for the subsidiary obtained from the consolidation of enterprises under the same control, theadjustment is made on the individual financial statement, based on the fair value of the netrecognizable assets on the purchase day in the preparation of the consolidated financial statement;as for the subsidiary obtained from the consolidation of enterprises not under the same control, theconsolidation is regarded as actual at the year-beginning of the consolidation period, and the assets,liabilities, operation result, and cash flow are all included in the consolidated financial statementfrom the year-beginning of the consolidation period.Cooling1. Particular about subsidiary(1) Subsidiary obtained from set-up or investmentVote proportionFull name of subsidiaryType ofsubsidiaryRegisteredNatureRegisteredcapitalCurrencyOperationActualBalance ofother itemssubstantiallyconsistingof netinvestmentin(%)Shareho(%)ConsolidatedMinorityBalance ofowners’ equity ofparent companyBalance offor deducting lossminorityin Period dilutedshareholders’by minorityequity forshareholders ofdeductingsubsidiary aboveloss/gainshare enjoyed inInternationalsubsidiaryowners’ equity atPeriod-beginningShandong Zhonglu OverseasFishery Sea TransportationCompanyCo., Ltd.Qingdao,Shandong transportation22,505,600.00searansportation,ransportationof cooling22,505,600.00100%100% Yfishery productSelf-supportHabitatInternationalCorporation Co., Ltd.PanamaCoolingtransportation12,476,146.00coolingransportation12,476,146.00100%100% YbusinessShandong ZhongluOverseas(Yantai) Food Co.,Ltd.Yantai,Co., Ltd. ShandongFoodprocessing75,593,300.00Freezing, cooling,processing andsale of fishery 75,593,300.00product, foul, fruit100%100% Y& vegetableOther statements through establishment or investments to achieve other instructionsBalance ofShareholding Vote minorityshareholders’not equity shareholders of(%)) (%)Balance ofShareholding Vote minorityshareholders’not equity shareholders of(%)) (%)(2) Through the subsidiary company obtained from the same control enterprise mergersUnit: yuanFull nameofsubsidiaryType ofsubsidiary RegisteredNatureRegisteredcurrencyOperationscopeActual sumatPeriod-endBalance ofother itemssubstantiallyconsistingof netinvestmentinsubsidiaryConsolidated Minority in Period dilutedproportion proportion statement orshareholders’ by minorityequity fordeductingloss/gainBalance ofowners’ equity ofparent companyfor deducting losssubsidiary aboveshare enjoyed inowners’ equity atPeriod-beginningOther explanations through the subsidiary company obtained from the same control enterprise mergers:(3) Through the subsidiary company obtained from the different control enterprise mergersUnit: yuanFull nameofsubsidiaryType ofsubsidiary RegisteredNatureRegisteredcurrencyOperationscopeActual sumatPeriod-endBalance ofother itemssubstantiallyconsistingof netinvestmentinsubsidiaryConsolidated Minority in Period dilutedproportion proportion statement orshareholders’ by minorityequity fordeductingloss/gainBalance ofowners’ equity ofparent companyfor deducting losssubsidiary aboveshare enjoyed inowners’ equity atPeriod-beginningOther explanations through the subsidiary company obtained from the different control enterprise mergers:Name2. Subject of special purpose for or operation entity of control over by trust operation or lease√ available□ unavailableYAW ADDO FISHERIESMajor business dealing withCompanyBalance of major assets and liabilities recognized inconsolidated statement at Period-endCOMPANY LIMITEDLease operationOther explanations on subject of special purpose for or operation entity of control over by trust operation or lease3. Statement on the changing of consolidation range□ available□ unavailable4. During the report period, the body of new consolidation area and the body of non-arrival consolidationThis new arrival consolidated range subsidiaries and special purpose subject form the control of the business entity through the agentbusiness or leased way, etc.unit： yuanNameTerminal net assetCurrent net marginThis non-arrival consolidated range subsidiaries and special purpose subject form the control of the business entity through the agentbusiness or leased way, etc.NameDeal net asset per dayNet profit from the beginning ofdisposal dateOther statements of the body of new consolidation area and the body of non-arrival consolidation5. Enterprise mergers under the same control during the report periodunit： yuanJudgment basisbelonging to theActual controllerThe income from the Net profit from this Operation cash flowmergedmerger of enterpriseunder the sameunder the samecontrolbeginning to thecombining dateperiod to thecombining datefrom this period tothe combining datecontrolOther statements of enterprise mergers under the same control:6. Enterprise mergers under the different control during the report periodunit： yuanmergedGoodwill amountGoodwill computing methodOther statements of enterprise mergers under the different control:7. Selling the stock rights of loss control to reduce subsidiary during the report periodSubsidiary nameSell dateAffirming method of profit and lossOther statements of selling the stock rights of loss control to reduce subsidiary：8. Counter purchasing occurred during the report periodCounting method of goodwillbackdoorThe basis of judgingconstructing counter purchasingAffirming method of combinedcostaffirmed in combination orprofit and loss included incurrent profitsOther statements of counter purchasing9. Consolidation by merger occurred during the report periodType of consolidation by mergerAbsorbing major assetsAbsorbing major liabilitiesconsolidation by merger under the same controlconsolidation by merger under the differentcontrolitemItemamountAmountitemItemamountAmountOther statements of Consolidation by merger:10. Conversion rate of main statement items of overseas operation entity(1) Conversion method for statement of overseas subsidiary with foreign currency as bookkeepingstandard currencya. The balance item in the balance sheet is converted on the current rate on the balance sheet day;all equity items besides the un-distributed profit item, all are converted on the actual rate.b. The income and expense item in the profit statement are converted on the current rate on theactual transaction day.c. The conversion difference in the foreign currency financial start is listed specifically as “foreigncurrency statement conversion difference” in the owners’ equity in the consolidated balance sheet inthe preparation of the financial statement.(2) Rate of conversion of foreign currency statement in Perioda. The current exchange rate of US$ : RMB = 1: 6.4716 on the balance sheet day is used for thebalance sheet item in the balance sheet.b. The current rate on the actual transaction day is used for the income and expense item in theprofit statement.VII. Notes to important item in consolidated financial statement1. Monetary capitalunit： yuanBalance at Period-endBalance at Year-beginningItemConversioForeign currency sumn rateRMB sumForeign currency Conversionsum rateRMB sumCash:RMB--------287,652.76203,251.62--------572,886.53228,009.13USD10,341.65 6.324965,409.9052,014.186.3009327,736.15EUR2,100.007.87116,529.102,100.008.162517,141.25GHC740.31 3.32582,462.14Bank deposit:RMB--------90,908,431.5679,394,631.34--------47,140,454.1129,698,872.57USDJPY1,725,992.04 6.3249210,584.00 0.079610,916,727.0616,762.491,301,679.47112,316,446.066.30090.0811038,201,752.179,109,200.72EUR16,003.837.871125,966.1516,003.518.1625130,628.65GHC136,612.10 3.3258454,344.52Other monetary capitalRMBTotal------------1,950,084.141,950,084.1493,146,168.46------------18,002,926.5018,002,926.5065,716,267.14Special statements should be given to the fund of using limitation, disposal aboard and potential risk recovery as mortgage, pledge orfreeze:Other currency balance at Period-end is RMB 1,950,084.14 is L/Cmargin payed by company.2. Transaction monetary assets(1) Transaction monetary assetsUnit: yuanitemTransaction bond investmentTransaction rights investment toolsFinancial assets appointed as fair value measurement andchanges in the current profits and lossesDerived financial assetsHedging toolsOtherssum(2) Transaction financial assets of variable existing restrictionsFinal fair valueBeginning fair valueUnit：yuanItemLimited sales conditions or other major limitationsin transaction aspectFinal amount(3) Hedging instrument and relevant hedging trade explanation3. Bill receivable(1) Sorts of bill receivableunit： yuanTypesFinal amountBeginning amountsum(2) Situation of final pledged bill receivablesUnit： yuanUnit of draw a billsumDate of draw a bill--Expiring date--amountremark--statement：(3) Bills transferred into accounts receivable because of the holder of the weak performance and bill that company has endorsed toelsewhere finally but not to matureunit： yuanUnit of draw a billsumDate of draw a bill--Expiring date--amountremark--Statement：Bill that company has endorsed to elsewhere finally but not to matureunit： yuanUnit of draw a billsumDate of draw a bill--Expiring date--amountremark--Statement：Statement of discounted or pledge business accepted bill4. Dividends receivableunit： yuanitemBeginning amountIncreasing of this periodReducing of this periodFinal amount46Dividends receivablewithin one yearamong：Dividends receivableabove one yearamong：--------sumstatement：5. Interest receivable(1) Interest receivableunit： yuanItemBeginning amountIncreasing of this period Reducing of this periodFinal amountSum(2) Overdue interestunit： yuanLoan unitunitOverdue time（day）--Overdue interest amount(3) Statement of actual interest6. Account receivable(1) Category of account receivable as follows:Balance at Period-endBalance at Year-beginningCategoryBook balanceProvision for baddebtsBook balanceProvision for baddebtsSumProportion(%)SumProportion(%)SumProportion(%)SumProportion(%)Account receivable withsingle major amount andwith single item bad debt0.000.000.000.00provision withdrawalAccount receivable of bad debt provision withdrawal by combinations(1) Combination of age 24,111,253.analysis100%6,201,373.1125.72%29,234,906.26100% 6,807,803.1323.29%Subtotal24,111,253.46100%6,201,373.1125.72%29,234,906.26100% 6,807,803.1323.29%Account receivable withminor amount but with0.000.000.000.00single item bad debt----provision withdrawalTotal24,111,253.46--6,201,373.11--29,234,906.26--6,807,803.13--Explanation to category of account receivable:Single amount of major accounts receivable amount to single for 1 million yuan (including 1million) or more customer accounts receivable, after the impairment test does not exist impairment,according to the company account provision for old provision. Single amount not significant butaccording to credit risk characteristics after the risk of the portfolio combination large accountsreceivable, refers to the age of account for more than three years of receivables, after theimpairment test does not exist impairment, according to the company account provision for oldprovision.No account receivable with single major amount and with bad debt provision withdrawal andaccount receivable with minor amount but with bad debt provision withdrawal in period-end.□ suitable √ unsuitableIn combinations, account receivable with bad debt provision withdrawal by method of age analysis□ suitable √ unsuitableunit： yuanBalance at period-endBalance at year-beginAccount ageBook balanceProportionAmount(%)Bad debt provisionBook balanceProportion Bad debt provisionAmount(%)Within one yearamong：Within 6 months6 months to 1 yearWithin one year1-2year2-3yearAbove 3years3-4years4-5yearsAbove five yearstotal--18,418,740.803,494.6518,422,235.450.000.005,689,018.010.000.005,689,018.0124,111,253.46--76.39%0.01%76.4%0%0%23.6%0%0%23.6%--512,005.63349.47512,355.100.000.005,689,018.010.000.005,689,018.016,201,373.11--23,516,882.3829,005.8723,545,888.250.000.005,689,018.010.000.005,689,018.0129,234,906.26--80.44%0.1%80.54%0%0%19.46%0%0%19.46%--1,116,307.412,477.711,118,785.120.000.005,689,018.010.000.005,689,018.016,807,803.13In combinations, account receivable with bad debt provision withdrawal by method of balancepercentage：□ suitable √ unsuitableIn combinations, account receivable with bad debt provision withdrawal by method of othermethods：□ suitable √ unsuitableThe final single amount although not significant but single plan carry the provision for accounts receivable□ suitable √ unsuitable(2) Accounts receivable of the return period or retrieveunit： yuanAccounts receivable contentReason of switch backor take backBasis of affirmingoriginal bad debtreservesReserve fund ofcumulative already plan Sum of switch back orcarry bad loans before take backswitch back or tack backtotal----0.00--Single amount not significant but according to credit risk characteristics after the risk of the portfolio combination large accountsreceivable instructions:(3) The actual period of receivables cancel after verificationunit： yuanCompany NameAccounts receivablepropertiesCancel after Cancel afterverification time verification amountCancel afterverification reasonWhether because ofrelated transactionproducetotal----0.00----Accounts receivable that cancel after verification(4) This period in the account receivable owned 5% (including 5% or more of the voting sharesshareholders□ suitable √ unsuitable(5) Top-five organization of account receivableunit： yuanCompany NameRelations with CompanysumagingProportion in totalaccount receivable (%01.Feng Qun aquaticproduct limited company2.PANDA3.Singapore Zhan Qun4. Nikko Fishery Co.,5. Japan three Xing YangNon-related partyNon-related partyNon-related partyNon-related partyNon-related party8,178,628.31 Within 6month3,600,962.12 Above three years3,515,932.73 Within six months1,334,972.70 Within six months637,732.27 Within six months33.92%14.93%14.58%5.54%2.64%total--17,268,228.13--71.61%(6) Situation of account receivableItem5unit： yuanName of unittotalRelations with Company--Sum0.00Proportion in total accountreceivable (%00%(7) Derecognizing account receivableunit： yuanTerminate recognized amountTermination confirming related gain or lossTotal0.000.00(8) To accounts receivable for the subject-matter of the securitization, listed its continuous involvement in the formation of theamount of assets and liabilitiesunit： yuanitemasset：subassetsliabilities：Liabilities small project7. Other account receivables(1) Other account receivables disclosed on categoryBalance at Period-endPeriod-endBalance at Year-beginning0.000.00Book balanceProvision for bad debtsBook balanceProvision for bad debtsCategoryProportioProportioProportionProportioSumn (%)Sumn (%)Sum(%)Sumn (%)Other account receivablewith single major amountand with single item bad0.000%0.000%0.000%0.000%debtprovisionwithdrawalOther account receivable of bad debt provision withdrawal by combinations(1) Combination of age 16,710,748.4analysis100% 8,960,087.5853.62%30,685,691.19100%8,685,736.6328.31%Subtotal16,710,748.45100% 8,960,087.5853.62%30,685,691.19100%8,685,736.6328.31%Other account receivablewith minor amount butwith single item bad debt0.000.000.000.00provision withdrawal----Total16,710,748.45--8,960,087.58--30,685,691.19--8,685,736.63--Explanation to category of account receivable:Single amount of major accounts receivable amount to single for 1 million yuan (including 1million) or more customer accounts receivable, after the impairment test does not exist impairment,according to the company account provision for old provision. Single amount not significant butaccording to credit risk characteristics after the risk of the portfolio combination large accountsreceivable, refers to the age of account for more than three years of receivables, after theimpairment test does not exist impairment, according to the company account provision for oldprovision.No account receivable with single major amount and with bad debt provision withdrawal andaccount receivable with minor amount but with bad debt provision withdrawal in period-end.□ suitable √ unsuitableIn combinations, account receivable with bad debt provision withdrawal by method of age analysis□ suitable √ unsuitableBalance at Period-endBalance at Year-beginningAgeBook balanceProportioProvision forBook balanceProportion Provision for badSumn (%)bad debtsSum(%)debtsWithin one yearamong：Within 6 months7,614,387.25 45.57%380,719.3622,039,938.10 71.82%138,668.496 months-1 year566,606.833.39%51,231.8434,678.740.11%2,185.77Within one year subtotal8,180,994.08 48.96%431,951.2022,074,616.84 71.93%140,854.261-2years2-3years132.843,050.000%0.02%39.851,525.0081,452.833,050.000.27%0.01%16,785.851,525.00Above three years8,526,571.53 51.02%8,526,571.538,526,571.52 27.79%8,526,571.523-4years4-5years0.0094,850.000%0.56%0.0094,850.000.0094,850.000%0.31%0.0094,850.00Above 5yearstotal8,431,721.53 50.46%16,710,748.458,431,721.538,960,087.588,431,721.52 27.48%30,685,691.198,431,721.528,685,736.63In combinations, account receivable with bad debt provision withdrawal by method of balancepercentage：□ suitable √ unsuitableIn combinations, account receivable with bad debt provision withdrawal by method of othermethods：□ suitable √ unsuitablesumThe final single amount although not significant but single plan carry the provision for accounts receivable□ suitable √ unsuitable(2) Accounts receivable of the return period or retrieveunit： yuanOther Accounts receivablecontentReason of switch backor take backBasis of affirmingoriginal bad debtreservesReserve fund ofcumulative already plan Sum of switch back orcarry bad loans before take backswitch back or tack backtotal----0.00--The final single amount or not significant major but separately impairment test of other accounts receivable provisionAccounts receivablecontenttotalBook balance0.00Sum for bad debts0.00Proportion (%)--reason--Single amount not significant but according to credit risk characteristics after the risk of theportfolio combination of larger other receivables instructions:The final no single amount and single provision for major provision for and single amount althoughnot big but single provision of the provision for other receivables.(3) The actual period of cancel after verification of other receivablesunit： yuanName of unitOther receivablespropertiesTime of cancel after sum of cancel afterverification verificationreasom of cancelafter verificationWhether because ofrelated transactionproducetotal----0.00----Other receivables cancel after verification explains:This period of no other receivables cancel after verification.(4)No owning of shareholding unit of 5% (including 5%) above vote stock in the Company atbalance of period-end□ suitable √ unsuitable(5) nature or content of other large amounts receivablesunit：yuanName of organizationFinancial Bureau of YantaiNature and content ofitemsExport tax4,830,421.69 reimbursementThe proportion of other receivables(%)28.91%sumitemZhongchanjing Investment Co.,Ltd.Tai LuQingdao branch insurerPICC4,281,620.00 Equity and debt809,272.83 Come-and-go moneyActing mat shipping454,226.90 insurance compensationActing mat shipping414,411.01 insurance compensation25.62%4.84%2.72%2.48%Total10,789,952.43--64.57%statement：(6) Top-five organization of other account receivablesProportion in total ofName of organizationRelations with CompanySumYear periodother account receivables(%)1. Financial Bureau ofYantaiNon-related enterprise4,830,421.69 Within 6 months28.91%2. ZhongchanjingInvestment Co., Ltd.3. Tai LuNon-related enterpriseNon-related enterprise4,281,620.00809,272.833-year-above3-year-above25.62%4.84%4. Qingdao branchinsurer5. PICCNon-related enterpriseNon-related enterprise454,226.90 Six months-one year414,411.01 Within six months2.72%2.48%total--10,789,952.43--64.57%(7) Other accounts receivable affiliated partiesunit： yuanName of organizationRelationship with the companyProportion in total of otheraccount receivables (%)total--0.000%(8) Termination of other receivables confirmationunit： yuanTerminate recognized amounttermination confirm of related gain or losstotal0.000.00(9) Other receivables for the subject-matter of the securitization, listed its continuous involvement in the formation of the amount ofassets and liabilities(2)unit： yuanitemasset：Sub-assetliabilities：Sub-liabilitiesPeriod-end0.000.008. Advance payment(1) Advance payment based on age listunit： yuanBalance at Period-endBalance at Year-beginningAgeProportionProportionSum(%)Sum(%)Within oneyear1-2years2-3years35,315,390.9187,641.1099.75%0.25%6,405,552.582,708.7099.96%0.04%3years aboveTotal35,403,032.01--6,408,261.28--Statement of advance payment：Top-five organization of advance paymentunit： yuanName of organizationRelations with CompanySumtimeUnsettled reason1. Penglai Beijing farfood Co., LTD2. Penglai Beijing lufishery Co., LTDNon-related enterpriseNon-related enterprise11,000,000.00 2012 years on June 710,104,968.18 2012 years on June 8,Prepaid raw materialsPrepaid raw materials3. YANTAI BEIJINGDEEP-OCEANNon-related enterprise5,000,000.00 2012 years on June 7Prepaid raw materialsFISHERY Co., LTD4. Qingdao composerfishery Co., LTD5. Abundant countriesaquatic products Co.,Non-related enterpriseNon-related enterprise3,000,000.00 2012 years on June 8,1,661,352.00 2012 years on June 12Prepaid raw materialsdeposit money inadvanceLTDtotal--30,766,320.18----Statement of advance payment company：（3）owning of shareholding unit of 5% (including 5%) above vote stock in the Company□ suitable √ unsuitable（4）Statement of advance paymentPrepaid accounts the final balance is an initial increased by 452.46%, mainly including yantai food Co., LTD to buy raw materialsand advance payment of tuna. Another Qingdao sea d branch for the fence of the new advance deposit.9. Inventory(1) Category of inventory as followsAmount at Period-endAmount at Year-beginningItem of inventoryRaw materialsBook balance44,382,522.32Provision forprice fall-down650,206.41Book value43,732,315.91Book balance61,862,435.75Provision forprice fall-down650,206.41Book value61,212,229.34goods in processInventoryRevolving materials49,578,923.341,311,664.4349,578,923.341,311,664.4362,363,081.281,256,769.5462,363,081.281,256,769.54Consumptivebiological assetstotal95,273,110.09650,206.4194,622,903.68125,482,286.57650,206.41124,832,080.16（2）Provision for price fall-downunit： yuanItem of inventoryRaw materialsBeginning Bookbalance650,206.41This period plancarryThis period reducingSwitch back Change offAmount at Period-end650,206.41goods in processInventoryRevolving materialsConsumptivebiological assetsItemitemitemtotal650,206.410.000.000.00650,206.41（3）Situation of Provision for price fall-downBasis of Provision for pricefall-downReason of this turn back stockwrite-downIn this issue of the inventoryturn amount of the proportion ofthe final balanceRaw materialsStorage goodsgoods in processRevolving materialsConsumptive biological assetsInventory instructions:The final net fell 24.2% by initial stock, mainly because of the reduce of Yantai food company stock tuna.10. Other flow assetunit： yuanAmount at Period-endAmount at Year-beginningtotalStatement of Other flow asset：11. Financial assets available for sale(1) Financial asset available for saleunit： yuanAvailable for sale bondsThe equity instruments available for saleFair value at period-endFair value at period-ebeginningothersTotal2,022,317.052,022,317.051,988,579.461,988,579.46This will be the held-to-maturity investment heavy classification is a financial asset available for sale, this period to the classificationof the heavy amount 0.00 yuan, the amount of weight before classification the held-to-maturity investment proportion of the total 0%.Statement of available for sale financial assetsThe financial assets are bought on October 26, 2011 purchases, cost 2 million yuan (including 8% commission, totally 16000 yuan.(2) Available for sale financial assets of long-term debt investmentsBond itemBond typevalueInitialinvestmentDue datebalance attheCurrentinterestCumulativeaccounts orEndingbalancecostbeginningof theperiodthe receivedinteresttotal------Available for sale financial assets of long-term debt investment instructions12. Held-to-maturity investment(1)Situation of held-to-maturity investmentunit： yuanitemThe final book balanceInitial book balancetotalThe held-to-maturity investment instructions:(2) This report period expires but not yet sold to maturity investmentsunit： yuanitemtotalsumShareholding proportion before sales (%)--This report period expires but not yet sold to maturity investment case13. long-term account receivableunit： yuantypeClosing balanceBeginning balanceFinance leaseincluding：unrealized financingincomeThe staging of sale of goodsinstallment payment provide laborservicesotherstotal14. To the joint venture enterprise investment and associated enterprise investmentunit： yuaninvested form of registrat corporat nature registereentity busine ion plac e of d capitaname ss enter e represen business lCurrencyenterpri The entse erprisesharehol in the iThefinaltotalThefinaltotalThe Thisfinal totaltotal net revenueThis net profitprisetativedingnvested assetsdebtassetsproporti entityon (%) proportion voting rights(%)I. cooperative enterpriseII. consortiumExplanation of joint venture enterprise, joint enterprise's important of accounting policies, accounting estimates and the company's accounting policy, accounting estimates there are big differences:15. Long-term stock investment(1) Long-term stock investmentInvestedorganizationCheckmethodInvstment costBalance atYear-beginningIncrease/decreasechangeBalanceatPeriod-endShareholdingproportion ininvestedorganization (%)Votingproportion ininvestedorganization(%)Explanation oninconsistency inproportionbetweentheshareholding andvotingProvisionfordepreciationAccrual ofprovision forimpairment inPeriodCashdividendinPeriodSouthSecurities Co.,Ltd.Costmethod33,000,000.0033,000,000.0033,000,000.000.87%0.87%33,000,000.00Total——33,000,000.0033,000,000.000.0033,000,000.00————33,000,000.000.000.00(2) The situation to investment enterprise transfer of limited funds abilityunit： yuanTo investment enterprise transfer fundsCurrent billed confirmation of investmeability of limited of the long-term equityRestricted reasonsnt loss amountinvestment projectsExplanation on long-term stock investmentConcerning South Securities Co., Ltd. had been canceled the license for securities business andcharged to close down as the administrative punishment by the CSRC on 29 April 2005, it wasannounced to be bankrupt by Shenzhen Intermediate Court, and the proportion for the impairmentof the long-term investment has been accrued on the book value in full sum on the stock in theSouth Securities Company.item16. Investment Real Estate(1) Investment real estate on cost√ suitable □ unsuitableBalance at Year-beginning Increase in PeriodDecrease in PeriodBalance at Period-endI. Total of originalprice1. House building47,120,794.8047,120,794.800.000.0047,120,794.8047,120,794.802. land-use rightII. Total ofaccumulativedepreciation and7,802,562.96609,332.760.008,411,895.72dilution1. House building7,802,562.96609,332.768,411,895.722. land-use rightIII. Total of book netof investment real39,318,231.840.000.0038,708,899.08estate1. House building2. land-use rightIV. Total ofaccumulative sum of39,318,231.8438,708,899.08provision for886,512.060.000.00886,512.06impairment ofinvestment real estate1. House building2. land-use rightV. Total of book value886,512.06886,512.06of investment real38,431,719.780.000.0037,822,387.02estate1. House building38,431,719.7837,822,387.022. land-use rightunit： yuanCurrent periodThis depreciation and amortization foreheadIn this issue of the investment real estate impairment provision forthe forehead(2) According to the fair value measurement of the investment real estate609,332.76atat--inat□ Applicable √ Not-applicableDuring the reporting period, we change the measurement model of the investment real estate and not for the property right certificateof the investment real estate related situation, and it is said that the reason for the property right certificate and handled is expected totime:According to J LiXia district Ji Nan city People's Court (2005) calendar holding the word no. 1299 "civil order" ruling in July 2006,Shandong province aquatic enterprise Group Corporation in jinan city located in the LiXia district He PingLu 43 in office building(The underground layer, the ground one to three layer, six to 13 layer of 7430 square meters, including 1847 square meters of landuse right) and office supplies counter to ZhongLu ocean fishery in shandong province of a joint stock limited company arrears,against payment of 55.129,673,57 million yuan (Related announcement appears on July 25, 2006 the “Securities Times” and HongKong-based newspaper “Wen Hui”). The house belongs to transfer the land, no construction planning permition, also did not dealwith property right certificate. At present, our company is to do property right certificate with the local government in matterscoordination.17. Fixed assets（1）Fixed assetsItemBalanceYear-beginningIncrease in PeriodBalanceDecrease in Period Period-endI. Total original book value：including：House andbuilding415,297,871.4463,638,771.104,540,182.6176,660,849.96343,177,204.1063,638,771.10Machineequipmentandfishing25,392,968.744,007,413.8612,385,871.3317,014,511.27Transportation vehicleShip5,709,795.74311,711,097.37163,515.9064,274,978.635,873,311.64247,436,118.74Furnitureandoffice8,845,238.50369,252.859,214,491.35appliancesBalanceYear-beginningat IncreasePeriodProvision in periodBalanceDecrease in Period Period-endII. Total of accumulativedepreciation and dilution：including：House building142,896,493.7211,178,346.22155,623.4911,210,117.60786,636.1839,376,987.10114,885,247.7011,964,982.40Machineequipmentandfishing8,196,396.04122,660.941,753,518.883,897,569.746,175,006.12Transportation vehicle2,352,331.04884.62435,896.112,789,111.77ship114,958,618.807,870,656.1835,479,417.3687,349,857.62Furnitureandoffice6,210,801.6132,077.93363,410.256,606,289.79appliances--BalanceYear-beginningat--BalancePeriod-endat------------------------------------III. Total net book value offixed assetsincluding：House andbuilding272,401,377.7252,460,424.88228,291,956.4051,673,788.70Machineequipmentandfishing17,196,572.7010,839,505.15Transportation vehicleShipFurniture and officeappliancesIV. Total depreciationprovisionincluding：House andbuildingMachine and fishingequipmentTransportation vehicleshipFurniture and officeappliancesV. total of book value ofcapital assetsincluding：House andbuildingMachine and fishingequipmentTransportation vehicleship3,357,464.70196,752,478.572,634,436.877,571,580.007,571,580.00264,829,797.7252,460,424.8817,196,572.703,357,464.70189,180,898.573,084,199.87160,086,261.122,608,201.567,571,580.007,571,580.00220,720,376.4051,673,788.7010,839,505.153,084,199.87152,514,681.12Furnitureappliancesandoffice2,634,436.872,608,201.56Deprecation is 11.365,741,09 million yuan in this period; by this project under constructionfor yuan to original value of fixed assets.(2) The fixed assets of the temporarily idleunit： yuanitemOriginal valueaccumulateddepreciationDecreasingpreparationNet valueremarkitemHouse and buildingMachine and fishingequipmentTransportationvehicle0.000.000.00(3) Fixed assets through financing lease the rented□ Applicable √ Not applicable(4) fixed assets through operating leases rent-out□ Applicable √ Not applicable(5) fixed assets of final holding for saleunit： yuanitemvalueFair valueexpected disposalexpensesexpected disposal time(6) fixed assets of non-property right certificateReason of non-property right certificateTime of expected to property rightcertificateNote:1. Fixed assets of this period increase 4,540,182.61 yuan, mainly due to the wheel gyro and radar of “Taifu 101” purchased by branchHaiwei Co., and taping machine and sealing machine purchased by Zhonglu Oceanic (Yantai) Food Co., Ltd.2. In this period, fixed assets and accumulated depreciation decrease 76,660,849.96 yuan and 139,376,987.10 yuan respectively.Mainly because branch Haiyan Comoany disposal shipping of “Taihong 102”.3. Mortgage of fixed assetsAs ending at 30 June 2012, Comprehensive credit of 27 million yuan was obtained by mortgage of production plant, original value of22,651,704.00 yuan and land use right of area of 33,333.30 m2 from subsidiary, Zhonglu Oceanic (Yantai) Food Co., Ltd.; short-temloan of 26 million yuan was obtained.4. Pursuant to the signed between the Company and Shandong Fishery Parent Company in April 2006, andLi Execution No. 1299 of Jinan City Lixia District People’s Court (2005), as locates on No. 43 Road, LixiaDistrict, Jinan City, the office complex of the original book value of RMB 54,221,197.05 is owned by the Company for offsetting thedebts. The certificate of the above housing property has not handled; the Company’s management is coordinating actively with allconcerned parties to solve the above issue of the housing property certificate.5. Balance of the impairment provision for fixed assets refers to balance of impairment provision accured with ships by buranch,Haiyan Company.18. Construction in progress（1）Closing balanceBeginning balanceitemBook balanceDecreasingpreparationBook valueBook valueDecreasingpreparationBook valueship61,876,966.8461,876,966.84 18,342,056.3718,342,056.37total61,876,966.840.00 61,876,966.84 18,342,056.370.0018,342,056.37(2) change of major project under constructionUnit: RMBshiptotalitemsbudget124,840,000.00124,840,000.00Beginning of Increasing inthe period the period18,342,056.37 43,534,910.4718,342,056.37 43,534,910.47Transferringfixed assets0.00Otherdecreasing0.00Engineeringinvestmentproportion ofbudget (%)67.25%--Work progressConstruction inprogress--Capitalization ofinterestaccumulated amount16,051.2016,051.20Including:Amount ofcapitalizingfor interest16,051.2016,051.20Capitalizingrate (%)7.04%--CapitalresourcesSelf-raised;loans--Amount atperiod-end61,876,966.8461,876,966.84Statement of project under construction of illustration changeCurrent construction in progress increase47, 534,901.47 yuan, and the system of Qingdao branch delay payment is built article 8 tuna long liner engineering and equipment.0.00(3) Construction in progress reservesunit： yuantotalitemBeginning of theperiod0.00Increasing in theperiod0.00decreasing in theperiod0.00Closing balance0.00Withdrawal reason--(4) Engineering progress situation of major construction projectitemprogressremark(5) Statement of construction in progress19. Project goods and materialunit： yuanitemBeginning of theperiodIncreasing in theperioddecreasing in theperiodClosing balancetotalStatement of project goods and material20. Disposal of fixed assetsunit： yuanitemValue of beginningValue of closingReason of transferring cleaningThai f 102 ship and fishing gears32,504,063.30 Ships sunktotal32,504,063.30--Description into liquidation of fixed assets starting time already more than 1 year liquidation of fixed assets progress:21. Capitalized Biological assets(1) Measurement as cost□ suitable √ unsuitable(2) Measurement as fair value□ suitable √ unsuitable22. Oil-and-gas assetsunit： yuanitemInitial book balanceIncreasing in the period decreasing in the periodClosing balanceI. book value total1．Proved mining rights2．Non-proven miningrights3 ． WellsandrelatedfacilitiesII.Accumulativetotaldepletion1．Proved mining rights2 ． WellsandrelatedfacilitiesIII. Oil and gas assetsimpairmentaccumulativetotal amount1．Proved mining rights2 ． Non-provenrightsmining3 ． WellsandrelatedfacilitiesIV. Oil and gas combinedthe carrying value of theassets1．Proved mining rights2 ． Non-provenrightsmining3 ． WellsandrelatedfacilitiesStatement of oil-and-gas assets：23. Intangible assets(1) Intangible assetsItemsI. Total original book valueLand use right of Yantai FoodOtherII. Total amount of accumulatedBalance at year-begin10,164,557.009,929,529.00235,028.002,675,964.08Increase in the period0.00134,855.22Decrease in theperiod0.000.00Balance at period-end10,164,557.009,929,529.00235,028.002,810,819.30amortizationLand use right of Yantai FoodOther2,506,019.36169,944.72118,208.5216,646.702,624,227.88186,591.42III. Total net book value of7,488,592.920.000.007,353,737.70intangible assetsItemsLand use right of Yantai FoodOtherIV. Total impairment provisionBalance at year-begin7,423,509.6465,083.280.00Increase in the period0.00Decrease in theperiod0.00Balance at period-end7,305,301.1248,436.580.00Land use right of Yantai FoodOtherV. Total book value of intangible7,488,592.920.000.007,353,737.70assetsLand use right of Yantai FoodOther7,423,509.6465,083.287,305,301.1248,436.58Current amortized 134855.22 yuan.(2) Company development project expenditureunit： yuanDecrease in the perioditemBalance atyear-beginIncrease in theperiodIncluded in thecurrent profits andlossesRecognized as anintangible assetBalance atperiod-endtotalCurrent development spending accounts for current research and development projects of the proportion of the total expenditures.Through the internal development of intangible assets formation of intangible assets of the proportion of the carrying value of thefinalCompany development project description, including current happen single value is in 1 million yuan of above and to assess valuefor credit basis, should disclosure appraisal institution name, assessment methods:(3) Non-completed property certificate of intangible assets situation24. Goodwillunit：yuaninvested entity name or formmatters of goodwillBalance atyear-beginIncrease in theperiodDecrease in theperiodBalance atperiod-endFinal reverspreparationtotalExplain the goodwill impairment test method and the method of depreciation reserves25. Long-term deferred and prepaid expensesunit：yuanItemitemitemBalance atyear-beginIncrease in theperiodCurrentamortizedOther reductionfinal amountOther reductionreasonsimproved defraythat hires fixed0.0030,902.000.000.0030,902.00assetstotal30,902.000.000.0030,902.00--Long-term prepaid expenses instructions:This final long-term prepaid expenses balance 30902.00 yuan. Qingdao shipping company is improved defray that hires fixed assets(Decorate charge), after the project for three years amortization.26. Deferred income tax assets and deferred income tax liabilities(1) Deferred income tax assets and deferred income tax liabilities not to offset the net amount after listed□ Applicable √ Not applicableAlready confirmed deferred income tax assets and deferred income tax liabilitiesBalance at period-enddeferred income tax assets：Balance at year-beginProperty depreciation preparationorganization costsdeductible losssubtotal140,245.83140,245.83140,245.83140,245.83deferred income tax liabilities：Trading sex financial tools, derivative financialinstruments valuationsIncluded in the capital reserves available for salefinancial assets of the changes in the fair valuesubtotalUnconfirmed deferred income tax assets classificationunit： yuanBalance at period-enddeductible temporary differencesdeductible losstotalUnconfirmed deferred income tax assets deductible losses will be in the following yearmaturityBalance at year-beginunit： yuantotalyearBalance at period-endBalance at year-beginremark--Taxable differences and deductible difference project listsunit： yuanitemamount of temporary differencesPeriod-endTaxable difference projectsubtotalDeductible difference projectsubtotal(2) net list of deferred income tax assets and deferred income tax liabilities to the offset□ suitable √ unsuitableDeferred income tax assets and deferred income tax liabilities instructions:27. Provision for impairment of assetsYear-beginItemI. Bad debt provisionBalance atyear-begin15,493,539.76Accrualamount thisperiod324,498.32Decreased in this periodSwitching back Transferring out656,577.39Balance atperiod-end15,161,460.69II.Provision for depreciation650,206.410.000.000.00650,206.41of inventoryIII. Impairment provision offinancial assets available forsaleIV. Impairment provision ofheld-to-maturity investmentV. Impairment provision of33,000,000.000.0033,000,000.00long-term equity investmentVI. Impairment provision of886,512.060.00886,512.06investment propertyVII. Impairmentprovision7,571,580.007,571,580.00ItemItemBalance atyear-beginAccrualamount thisperiodDecreased in this periodSwitching back Transferring outBalance atperiod-endof fixed assetsVIII. Impairment provision ofproject materialIX. Impairment provision of0.000.000.00construction in processX. Impairment provision ofproduction biological materialassetIncl. Impairment provision ofmature production biologicalmaterial assetXI. Impairment provision ofgas & oil assetXII. Impairment provision of0.000.000.00intangible assetXIII. Impairment provision ofgoodwillXIV. OtherTotal57,601,838.23324,498.32656,577.390.0057,269,759.16Impairment of assets classification of instructions:According to the current account rehetological analysis to receivables provision 324,498.32 yuan of the provision for bad debts; Rushed back to 656,577.39 yuan of the provision for bad debts.28. Other non-current assetsunit： yuanBalance at period-endTotalStatement of other non-current assets:9. Short-term loans(1) Short-term loans list according to categories:Balance at year-beginTerm of loansAmount inAmount in year-beginperiod-endPledge loanMortgage loanGuaranteed loanCredit loanTotal39,474,486.4839,474,486.4819,553,517.3819,553,517.38Note: Till June 30, 2012, subsidiary Zhong Lu ocean (yantai) food co., LTD. With original value22651704.00 yuan production houses and its holdings of 33333.30 square meters of land use rightsas collateral for comprehensive credit line 27 million yuan, which has made short term loan13474486.48 yuan, on the open domestic letter of credit financing ways to achieve 26 million yuan.loan of China Minsheng Bank.(2)Situation of matured outstanding short-term loanUnit: yuanLoan unittotalloan amountloan interest rate--loan capital USES--failed to repay reason--expected repaymentperiod--Already compensation of Assets and liabilities sheetShort term loan instructions, including expired short-term borrowing which was extended,explained extension condition, and the new expiry date:30. Transactional Monetary LiabilitiesProjectIssue transactional bondsRecorded in the profits and lossesthe current period of financialliabilities designated as measured atits fair value and the changes .Derivative financial liabilitiesOther financial liabilitiestotalIntroduction of trading financial liabilities:31. Payable notesfinal fair valueinitial fair valueUnit: yuantypethe final numberinitial numberAccept draft (s)of BusinessAccept draft the banktotalThe amount of the yuan. of the next accounting periodNotes payable introduction:32. Accounts payableUnit: yuanWithin 1 year1-2 years2-3 yearsOver 3 yearsTotalItemsBalance in period-end70,515,447.484,258,033.3774,773,480.85Balance in year-begin82,945,949.154,438.534,253,594.8487,203,982.52Note: 1. The balance did not contain account that should be paid to any major shareholders whoown more than 5% (including 5%) of the Company’s share capital.□ Applicable √ Not applicableThe balance has no major account payable with over 1 year.33. Accounts received in advance(1)Unit: yuanWithin 1 year1-2 years2-3 yearsOver 3 yearsTotalItemsBalance in period-end88,046.00349,863.72437,909.72Balance in year-begin3,239,066.29349,863.723,588,930.01（2）The balance did not contain account that should be paid to any major shareholders who ownmore than 5% (including 5%) of the Company’s share capital.□ Applicable √ Not applicableThe balance has no major account receivable in advance with over 1 year.II.Taxes34. Tax payableItemsBalance in year-beginIncrease amount thisperiodDecrease amount this periodBalance in period-endI. Salary,bonus,allowanceand13,379,336.9121,558,958.0524,139,923.2210,798,371.74subsidyEmployeeWelfare expenses1,270,735.391,270,735.39III. Social insuranceIncluding: MedicalinsuranceBasicpension insuranceUnemploymentinsuranceInjury insuranceMaternityinsuranceSubsidies and specialinsurance of retireeIV. Housingaccumulation fundV, Dismissal welfareVI.Others0.000.000.000.000.000.00171,298.8933,680.00911,924.583,676,799.351,029,162.262,118,690.52247,341.53119,688.05111,459.2650,457.731,163,288.5955,535.21324,088.523,664,126.351,026,858.082,109,473.79246,189.44119,688.05111,459.2650,457.731,327,228.4055,535.21102,492.2612,673.002,304.189,216.731,152.097,359.0833,680.001,133,520.84V. Labor unionoutlay and employee911,924.58324,088.52102,492.261,133,520.84education outlayTotal14,496,240.3828,049,405.1130,560,040.8311,985,604.66Dealing with worker firewood to belong to the default properties in the amount of 0.00Labor union funds and employee education funds amount 102492.26, non-monetary benefits value 0.00, compensation for thecancellation of labor relationship respectively in the amount of 55,535.21.Extend time, amount of arrangement of dealing with worker firewood.35. Tax payableUnit: yuanBalance in period-endBalance in year-beginValue-added taxConsumption taxBusiness taxBusiness tax-6,992,982.1847,700.55257,489.31-6,030,829.3059,403.00151,807.83--Individual income tax528,011.96Urban maintenance and construction taxHousing property taxLand use taxEducational add expensesThe otherTotal3,487.35194,320.4076,145.202,490.9718,583.29-5,864,753.15109,862.6447,083.99365,280.42-5,297,391.42Taxes payable, that the tax authorities agreed to the branch companies, subsidiaries of taxable income between mutual dispensing,and shall explain tax calculation process:36. Interest payableUnit: yuanProjectBalance in period-endBalance in year-beginInstallment and interest due repayment of principallong-term loan interestEnterprise bond interestShort term loan interest payabletotalExplanation of interest payable:37. Dividends payableUnit: yuanUnit nameLuYin investment group co., LTD.Shandong airlines airlines co., LTD.China national heavy duty truckgroup co., LTD., jinanShandong detai decoration co., LTDTotalBalance in period-end45,109.8032,110.00350,000.0032,110.00459,329.80Balance in year-begin45,109.8032,110.00350,000.0032,110.00459,329.80Reasons ofmore than a year notpayingDividends payable introduction:38. Others account payable(1)Unit: yuanWithin 1 year1-2 years2-3 yearsOver 3 yearsTotalItemsBalance in period-end10,131,194.62586,106.68100,446.265,622,073.1316,439,820.69Balance in year-begin9,784,957.865,887,595.56428,372.5966,473.2016,167,399.21(2) The balance did not contain account that should be paid to any major shareholders who own more than 5% (including 5%) of theCompany’s share capital.□ Applicable √ Not applicable(3) The balance has no major account receivable in advance with over 1 year.(4) Introduction of the larger amount other others account payableWithin 1 year of this term ,the other payables is 10131194.62 yuan. Mainly 1, Yantai food co., LTD. 4218700.66 yuan, ie. copingwith financial center. 2, Haiyan branch withdrawal of repairing ship money 2550000 yuan. 3, HIC international company withdrawalof repairing ship and meals 2356716 $.9939, Expected liabilitiesUnit: yuanProjectBalance in year-begincurrent increasecurrent reduceBalance in period-endProviding guaranteePending litigationProduct quality assuranceRestructuring obligationsDismissal welfareTheexecutorylossescontractOtherstotalExplanation of expected liabilities:40. Non-current liabilities within 1 year(1)Unit: yuanProjectlong term loan within 1 yearthe long-term accounts payable within 1 yearBalance in period-endBalance in year-begin(%)bonds payable within 1 yeartotal(2) Long term loan within 1 yearUnit: yuanProjectBalance in period-endBalance in year-beginPledge loanMortgage loanGuaranteed loanCredit loantotalThe loan amount yuan of exceeding the time limit for extension in the long term loan within 1 year,long term loan within 1 year of the amount of the top fiveUnit: yuanloan unitloan unit loanstarting datethe date ofexpiry of theloancurrencyBalance in period-end Balance in year-beginInterest rates the amount of the amount of the amount of the amount offoreign domestic foreign domesticcurrenciescurrencycurrencycurrencytotal------------The long-term loans overdue loan within 1 yearUnit: yuanLoan unittotalborrowingamountoverdue time--Annual rate (%)--loan capitalUSES--reasons ofoverdueoutstanding--expectedrepayment period--Compensative amount of the balance sheetExplanation of long term loan within 1 year(3) Bonds payable within 1 yearUnit: yuanBond namepar valueissue datebondissuancetime limitthe amountof initialinterestpayablecurrentinterestpaid currentinterestthe finalinterestpayableendingbalanceExplanation of bonds payable within 1 year(4) The long-term accounts payable within 1 yearUnit: yuanloan unittime limitunit initialamountInterest rates (%)accrued interestborrowingending balance requirementIntroduction of long-term payables within 1 year:41. Other current liabilitiesUnit: yuanProjectthe final book balanceinitial book balanceTotalExplanation of other current liabilities:42. Long-term loan(1) Long-term borrowing classificationUnit: yuanPledge loanMortgage loanGuaranteed loanCredit loanTotalProjectBalance in period-end10,260,000.0010,260,000.00Balance in year-beginThe long-term loan classification explanation:Till June 30, 2012, the company is building the using tuna long liner, strive of the project loan comprehensive credit line 58 millionyuan of industrial and commercial bank of China co., LTD., Jinan branch just. According to the agreement, 8 ships completed themortgaged to the industrial and commercial bank of China co., LTD., Jinan branch, according to shipbuilding progress, the companyhas obtained the bank 3 -year long-term loans 10.26 million yuan.(%)(2) Long-term borrowing of the amount of the top fiveUnit: yuanLoan unitloan startingdatethe date ofexpiry of theloancurrencyBalance in period-end Balance in year-beginInterest rates The amount the amount of The amount the amount ofof foreign domestic of foreign domesticcurrencycurrencycurrencycurrencyThe industrialandcommercialbank ofChina co.,2012-06-132015-06-01CNY7.04%10,260,000.00LTD., JinanbranchTotal----------10,260,000.00--Long-term borrowing description, for overdue loan renewal for the formation of long-term loans, which shall explain extension of thecondition, the principal, interest, expected reimbursement arrangement:43. Bonds payableUnit: yuaninterestcurrentcurrentinterestBond namepar valueissue datebondissuancetime limitthe amountof initialpayablecurrentinterestinterest paid interest paidthe final the finalinterest interestpayablecurrentinterestendingbalanceaccruedpayablepayableaccruedBonds payable instructions, including convertible company bonds transfer shares condition and equity transfer time:44. Long-term account payable(1)Situation of amount of the top five long-term payablesUnit: yuanUnitTerm limitinitialamountInterest rates(%)accruedinterestendingbalanceborrowingrequirement(2) The dealing with the long-term accounts payable financing lease in detailUnit: yuanthe final numberinitial numberUnitForeign currencyRMBforeigncurrencyRMBTotalBy an independent third party provides a guaranty for the company finance lease of the amount ofyuan.Introduction Long-term accounts payable:45. Specific payableUnit: yuanProjectTotalinitial numbercurrent increase current reduce the final numberdescription--Explanation: Specific payable46. Other non-current liabilitiesUnit: yuanProjectthe final book balanceinitial book balanceTotalOther non-current liabilities: including the obtained all kinds and assets related, the government subsidies pertinent to income and thefinal amount:47. Share capitalUnit: yuanTotal numberof sharesInitial numberc266,071,320.00Issuing newsharescurrent changes increase or decrease (+, -)accumulationsent strands fund turn otherstrandsTotalthe finalnumber266,071,320.00Equity changes shows that the report period has add endowment or disinvest behavior, should disclosure executive capitalverification accounting firm name and capital verification report number; co., LTD with operation insufficient 3 years, and set upbefore the year indicate that net assets; Limited liability company wholly is changed into a joint stock company ,which shall explainthe capital verification when the company at the time it was established:48. Treasury stockDescription of Treasury stock situation49. Special reserveThe description of special reserve situation50. Capital reservesUnit: yuanProjectCapital premium (equitypremium)Other capital reserveinitial number186,283,711.0094,950,084.42current increase33,737.59current to reducethe final number186,283,711.0094,983,822.01Total281,233,795.4233,737.590.00281,267,533.01Capital reserve explanation:51. surplus reservesUnit: yuanProjectLegal surplusinitial number21,908,064.19current increasecurrent reducethe final number21,908,064.19Any surplusReserve fundEnterprise development fundotherTotal21,908,064.190.000.0021,908,064.19Surplus reserves, indicating that the surplus turn add capital, make up for losses, dispatch dividend, should on the resolution:52. General risk preparationGeneral risk for explanation:--------53. undistributed profitUnit: yuanThe projectBefore the adjustment undistributed profitAt the beginning of adjustment of theundistributed profit (adjustable add +, toreduce -)Early after adjusting undistributed profitAdd: this belongs to the owner of the parentcompany net profitReduced: to extract legal surplusExtract any surplusExtraction general risk preparationDeal with common stock dividendTurned to be equity of common stockdividendThe final undistributed profitamount extraction-133,704,015.43 --133,704,015.4326,409,180.75-107,294,834.68allocation proportionAt the beginning of adjustment undistributed profit detail:1), due to the trace adjustment of accounting standards for enterprises and related new rules, whichinfluences undistributed profit yuan. at the beginning of the year.2), because of the accounting policy changes, which influences undistributed profit yuan. at thebeginning of the year.3), due to the correction of big accounting errors, which influences undistributed profit yuan. at thebeginning of the year.4), because of the same control lead to merge scope change, which influences undistributed profityuan. at the beginning of the year.5), other adjustment total influences undistributed profit yuan.Undistributed profit shows that for the first time for public issuance of securities companies, ifbefore the issuance of the resolution of the shareholders' meeting, accumulated profits by new andold shareholders share, should make clear specification; If before the issuance of the accumulatedItemsprofits the resolution of the shareholders' meeting, before issue for distribution and the oldshareholders enjoy, the company should make clear disclosure dividends payable in purdahshareholders enjoy the audited profit number:54. Operating income and operating cost（1）Operating income and operating costunit： yuanAmount occurred this periodAmount at same period of last yearMain operating incomeOther operating incomeoperating cost247,589,887.873,310,206.16218,874,259.05234,823,156.551,488,908.89195,211,217.64（2）Main operations（classified according to industries）√ Applicable □ Not applicableunit： yuanIndustriesAmount occurred this periodAmount occurred at last periodoperating incomeoperating costoperating incomeoperating costOceanic fishing and re-processingRetting of refrigerated vessel andvessel managementSeafood processing, cold storageand otherTotal79,469,478.8333,889,343.62134,231,065.42247,589,887.8767,000,613.3725,813,516.53125,119,665.33217,933,795.2384,383,747.8829,613,941.81120,825,466.86234,823,156.5557,906,988.7523,375,612.76113,140,955.60194,423,557.11（3）Main operations（classified according to products）√ Applicable □ Not applicableunit： yuanproductsAmount occurred this periodAmount occurred at last periodoperating incomeoperating costoperating incomeoperating costTunaShips rental chargeSeafood processing, cold storagechargeTotal79,469,478.8333,889,343.62134,231,065.42247,589,887.8767,000,613.3725,813,516.53125,119,665.33217,933,795.2384,383,747.8829,613,941.81120,825,466.86234,823,156.5557,906,988.7523,375,612.76113,140,955.60194,423,557.11Areas（4）Main operations (classified according to areas)√ Applicable □ Not applicableunit： yuanAmount occurred this periodAmount occurred at last periodoperating incomeoperating costoperating incomeoperating costMainland of ChinaTaiwan of ChinaJapanSingaporeGhanaSouth KoreaUSASpainOthersTotal45,560,040.4849,389,849.01102,292,151.8017,454,830.616,537,224.7426,355,791.23247,589,887.8733,518,936.5138,073,465.5798,401,777.0416,744,419.005,922,602.5425,272,594.57217,933,795.2355,055,802.5460,229,405.3479,109,827.9414,839,381.234,428,001.5816,375,555.25458,788.60543,100.403,783,293.67234,823,156.5536,898,160.1043,150,764.1375,674,843.7614,017,776.574,692,870.7115,468,898.00433,387.08513,030.833,573,825.93194,423,557.11（5）Operation income from top 5 clients of the Companyunit： yuanClients1.Fengqun Fishery Co., Ltd.2. Japan Sanxingyang3. Japan Weekly Co., Ltd.4. Japan and east5. Singapore Zhao groupTotalOperating income instructions55. Contract item income√ Applicable □ Not applicableContract item instructions：Main operating income48,861,635.6935,322,832.3030,797,665.7118,025,315.1017,454,830.61150,462,279.41To account for the company all the operating incomeproportion19.47%14.08%12.27%7.18%6.96%59.96%--Items56. Operating taxes and extrasunit： yuanItemsAmount occurred thisperiodAmount occurred at lastperiodCalculation standardsConsumption taxBusiness taxCity maintenance and planning taxEducational surtaxResources taxHouse property taxOtherTotal125,064.2068,137.1548,669.39135,960.0024,001.48401,832.22114,559.99 3% or 5% of leasing income52,588.99 7% of paid turnover tax37,563.55 4% or 5% of paid turnover tax131,400.00 House area55,541.63391,654.16Operating taxes and extras instructions：57. Income from changes in fair valueUnit: yuanThe source of income from changes in fair valueAmount occurred this periodAmount occurred at last periodTrading financial assetsIncluding: income of changes in fair value fromderivative financial toolsTrading financial liabilitiesInvestment real estate according to the fair valuemeasurementOtherTotalIncome from changes in fair value instructions58. Investment income（1）Details of investment incomeunit： yuanAmount occurred this periodAmount occurred at last periodLong-term stock investment income of costaccountingLong-term stock investment income of equitymethod accountingDisposing of long-term stock investment incomeInvestment income gained during holding tradingfinancial assetsInvestment income gained during the period ofheld-to-maturity investmentInvestment income gained during holdingavailable-for-sale financial assetsDisposing of investment income gained fromtrading financial assetsInvestment income gained from held-to-maturityinvestmentInvestment income of available-for-sale financialassetsOtherTotal（2）Long-term stock investment income according to cost accountingunit： yuanTotalInvested organizationAmount occurred thisperiodAmount occurred atlast periodThe reason of increasing, decreasingand changing from this period to theprevious--（3）Long-term stock investment income according to equity method accountingunit： yuanTotalInvested organizationAmount occurred thisperiodAmount occurred atlast periodThe reason of increasing, decreasingand changing from this period to theprevious--Investment income instructions: Whether the investment income remittance back being serious limited or not, it shall be stated.ItemsItems59. Loss of devaluation of assetsunit： yuanAmount occurred this periodAmount occurred at last periodI. Bad debt lossesII .Inventory impairment lossesIII. Impairment losses of financial assets available for saleIV. Impairment losses of held-to-maturity investmentV. Impairment losses of long-term equity investmentVI. Impairment losses of investment propertyVII. Impairment losses of fixed assetsVIII. Impairment losses of project materialIX. Impairment losses of construction in processX. Impairment losses of production biological materialassetXI. Impairment losses of gas & oil assetXII. Impairment losses of intangible assetXIII. Impairment losses of goodwillXIV. OtherTotal-332,079.07-332,079.07-374,227.01-374,227.0160. Non-operating income（1）unit： yuanGains on disposal of non-current assetsIncluding: gains from disposal of fixed assetsgains from disposal of intangible assetsGains from debt restructuringGains from exchange of non-monetary assetsDonation receivedAmount occurred this periodAmount occurred at last period2,208,769.032,208,769.03Government subsidyOtherTotal22,401,200.001,039,813.9723,441,013.9725,478,279.7127,687,048.74--Items（2）Details of government subsidy:unit： yuanItemsAmount occurred thisperiodAmount occurred at lastperiodExplanationThe financial documents in ShandongFuel subsidies21,771,200.0025,229,000.00province LuCai built refers to [2012]54The financial documents in ShandongFinance discountFinance rebateSubsidy of position stabilityOtherTotal600,000.0030,000.0022,401,200.00209,064.7140,215.0025,478,279.71province LuCai built refers to [2012]34Subsidy for project of financialtechnologyNon-operating income instructions61. Non-operating expenseunit： yuanAmount occurred this periodAmount occurred at last periodTotal loss on disposal of non-current assetsIncluding: loss from disposal of fixed assetsLoss from disposal of intangible assetsLoss from debt reorganizationLosses from exchange of non-monetary assetsExternal donationOtherTotal4,779,798.564,779,798.564,491,750.189,271,548.7414,461.3214,461.3214,461.32Non-operating expense instructions：The repair of “Tai Fu 102” wheel costs 4,038,314.75 yuan, and the scrap disposal of old scrap is741,483.81 yuan. Others cost 4,491,750.18 yuan, including raw material 1,985,716.97 yuan and common-of-piscary fee 2,506,033.21yuan.62. Expense of income taxesunit： yuanItemsP0P0S0S1SiSjSkMiMjSP1P1Amount occurred this periodAmount occurred at last periodCurrent income taxes that reculated based on taxation laws andrelevant regulationsDeferred income tax adjustmentTotal660,166.07660,166.07554,176.06554,176.0663. Calculation procedure for basic earnings per share and diluted earnings per shareItemNet profit attributable to common shareholders of the Company (Ⅰ)Net profit attributable to common shareholders of the CompanyCodeAmount occurredthis period26,409,180.7534,610,915.52Amount occurred atlast period53,530,928.1251,087,340.70after deducting non-recurring gains and losses (Ⅱ)Total shares at period-beginAmount of shares increase from public reserve capitalizing or sharedividend distributionAmount of shares increase from newly issuing shares or sharestransfer from debtAmount of shares decrease from repurchased in report periodReducing shares in report period266,071,320.00266,071,320.00Amount of months in report periodM066Accumulated months from next month of share increased toperiod-endAccumulated months from next month of share decreased toperiod-endWeighted average of common shares issuing outsideBasic earnings per share (Ⅰ)Basic earnings per share (Ⅱ)Current net profit attributable to common shareholders afteradjustment (Ⅰ)Current net profit attributable to common shareholders afteradjustment without non-recurring gains and losses (Ⅱ)Weighted average of common shares increased by warrants, stockoption and convertible bonds etc.Diluted weighted average of common shares issuing outside266,071,320.000.100.1326,409,180.7534,610,915.52266,071,320.00266,071,320.000.200.1953,530,928.1251,087,340.70266,071,320.00ItemDiluted earnings per share (Ⅰ)Diluted earnings per share (Ⅱ)0.100.130.200.1964. Other consolidated incomeunit： yuanAmount occurred this periodAmount occurred at last period1. Amount of gains (loss) arising from financial assets availablefor saleLess: tax influence arising from financial assets available forsaleNet amount calculated in other comprehensive incomein early period and transferred to gains and loss in currentperiod33,737.59Subtotal2. Shares of other comprehensive income in invested unitscalculated inequity methodLess: income tax influence arising from shares of othercomprehensive income in invested units calculated in equitymethodNet amount calculated in other comprehensive income in earlyperiod and transferred to gains and loss in current periodSubtotal3. Amount of gains (loss) arising from hedging instrument ofcash flowLess: income tax influence arising from hedging instrumentof cash flowNet amount calculated in other comprehensive income in earlyperiod and transferred to gains and loss in current periodAdjustment of original confirmation amountstransferred to hedged itemsSubtotal4. Translation differences of foreign financial sheetLess: net amount from disposal of foreign operation included ingains and loss currentlySubtotal5. OtherLess: influence of other income tax included in other33,737.590.000.00462,193.65462,193.650.000.000.00425,924.10425,924.10comprehensive incomeNet amount calculated in other comprehensive incomein early period and transferred to gains and loss in currentperiodSubtotalTotal0.00495,931.240.00425,924.10Other comprehensive income instructions：65. Notes to items of cash flow statement（1）Other received cash related to operating activitiesunit： yuanInterest incomeGovernment subsidiesCurrent accountOtherItemTotalAmount234,172.0622,401,200.0011,032,365.5212,933,228.2346,600,965.81Other received cash related to operating activities instructions（2）Other paid cash related to operating activitiesunit： yuancurrent accounts paidSales expenses paid in cashManagement expenses paid in cashItemTotalAmount14,059,637.87894,567.0210,602,617.2925,556,822.18Other paid cash related to operating activities instructions（3）Other received cash related to investment activitiesunit： yuanItemAmountTotalOther received cash related to investment activities instructions（4）Other paid cash related to investment activitiesunit： yuanItemAmountTotalOther paid cash related to investment activities instructions（5）Other received cash related to financing activitiesunit： yuanItemTotalOther received cash related to financing activities instructions（6）Other paid cash related to financing activitiesAmountunit:yuanItemAmountTotalOther paid cash related to financing activities instructions66. Supplementary information of cash flow statement（1）Supplementary information of cash flow statementunit： yuanSupplementary information1．Reconciliation of net profit to cash flows from operatingactivities:Amount of this period--Amount of last period--Net profitAdd: Provision for impairment of assetsDepreciation of fixed assets, oil assets and productivebiological assetsAmortization of intangible assetsAmortization of long-term prepaymentsLosses on disposal of fixed assets, intangible assets andother long-term assets (income is listed with “- ”)Losses on scrapping of fixed assets(income is listed with“- ”)Losses on fair value change(income is listed with “- ”)Financial expenses(income is listed with “- ”)Investment losses(income is listed with “- ”)Decrease in deferred income tax assets (increase is listedwith “-”)Increase in deferred income tax liabilities (decrease is listedwith “- ”)Decrease in inventories(increase is listed with “-”)Decrease in operating receivables(increase is listed with“-”)Increase in operating payables(decrease is listed with “- ”)OthersNet cash flows from operating activities2．Significant investing and financing activities that do notinvolve cash receipts and paymentsConversion of debt into capitalConvertible bonds to be expired within one yearFixed assets under finance lease3．Net increase in cash and cash equivalentsCash at the end of the yearLess: Cash at the beginning of the periodAdd: Cash equivalents at the end of the periodLess: Cash equivalents at the beginning of the periodNet increase in cash and cash equivalents----26,409,180.75-332,079.0711,365,741.09134,855.224,779,798.56603,922.7730,209,176.48-22,700,176.51-8,309,100.4842,161,318.8193,146,168.4665,716,267.1427,429,901.32----53,530,928.12-374,227.0112,421,668.18134,322.04-2,193,907.71-400.001,140,664.64-30,869,415.32-17,107,607.0919,943,178.3436,625,204.1992,912,196.0386,462,727.396,449,468.64（2）This report refers to gaining or disposing relevant information of subsidiaries and other business unitsunit： yuanSupplementary information1.Gain relevant information of subsidiaries and otherbusiness units1. Gain the price of subsidiaries and other business units2. Gain the cash and cash equivalents paid by subsidiariesand other business unitsLess: the cash and cash equivalents holding bysubsidiaries and other business units3．Gain the net cash of subsidiaries and other business units4．Gain the net assets of subsidiariesCurrent assetsNon-current assetsCurrent liabilitiesNon-current liabilitiesII. Dispose relevant information of subsidiaries and otherbusiness units1.Dispose the price of subsidiaries and other business units2..Dispose the cash and cash equivalents paid bysubsidiaries and other business unitsLess: the cash and cash equivalents holding bysubsidiaries and other business units3..Dispose the net cash of subsidiaries and other businessunits4..Dispose the net assets of subsidiariesAmount occurred this period--0.00--0.00Amount occurred at last period--0.00--0.00Current assetsNon-current assetsCurrent liabilitiesNon-current liabilities（3）The composition of cash and cash equivalentsunit： yuan1. CashItemClosing amount93,146,168.46Opening amount65,716,267.14Including: Cash on handBank deposit paid at any timeOther monetary funds paid at any timeAccounts placed in central bank available for paymentDeposit from other banksLoan at call from other banksII. Cash equivalentsIncluding: Bonds investment expired within three monthsIII. Cash and cash equivalents at the end of year287,652.7690,908,431.561,950,084.1493,146,168.46572,886.5347,140,454.1118,002,926.5065,716,267.14Supplementary information of cash flow statement instructions67. Notes to statement of change in equityTo illustrate the adjustment of other item name and amount for the balance at the end of last year, andRetroactive adjustment produced by enterprise merger under the same control, etc.（VIII）Accounting treatment of asset securitization business1. To illustrate the main trading arrangement and accounting treatment of asset securitization business andbankruptcy isolation terms2. Subject situation of the company without control power but essentially bearing the risk of specialpurposeunit： yuannameThe final totalassetsThe final totalliabilitiesThe final netassetsCurrent operationincomeCurrent net profitremark（IX）Related parties relationship and their transaction1. Particular about the parent company of the enterpriseunit： yuanParentcompanyRelatedrelationshipType of Registratienterprise on placeLegalrepresentativeNature of Registratibusiness on capitalSharehold Votinging rightCurrency proportio proportion of n ofparent parentUltimate Code ofcontroller organizatiof the onCompany institutions,company companyin thein theCompany CompanyInvestment and(%)(%)Sate-owned Assetsmanagement,State-owned AssetsofShandongProvinceInvestmentControllingshareholderState-ownedenterpriseShandongJinanmanagemLi ent andGuangqin operationg of assets,managed1,600,000,000.00CNY33.07%ofShandong33.07% ProvinceInvestment16307316-7HoldingsCo., LtdoperationHoldingsCo., Ltdinvestment advisory(VIII) asset securitization business accounting1. explanation of asset securitization business main trading arrangement and its accountingtreatment, bankruptcy isolation terms2. the company has no control but essentially bear the risk of special purpose subject situationUnit: yuanNamethe final totalassetsthe final totalliabilitiesfinal net assetscurrent operationincomecurrent net profitnoteVI. Related parties relationship and their transaction1. Particualr about the parent company of the enterpriseShareholdingVotingrightParentcompanyRelatedrelationshipType ofenterpriseRegistration placeLegalrepresentativeNature ofbusinessRegistrationcapitalproportion ofparentcompanyin theproportion ofparentcompany in theUltimatecontroller of theCompanyCode oforganizationinstitutionCompany(%)Company (%)Sate-ownedAssetsParentCompanyState-ownedenterprisShandong JinanLiGuangqingInvestment andmanagemRMB1600million33.0733.07State-ownedAssets of16307316-7ggntShareholdingVotingrightParentcompanyRelatedrelationshipType ofenterpriseRegistration placeLegalrepresentativeNature ofbusinessRegistrationcapitalproportion ofparentcompanyin theproportion ofparentcompany in theUltimatecontroller of theCompanyCode oforganizationinstitutionCompany(%)Company (%)ofShandonProvinceInvestmentHoldings Co.,Ltdeent,management andoperationof assets,managedoperations,investmeShandonProvinceInvestmeHoldingsCo., LtdntadvisoryThe illustration of the parent company of the enterprise2. The situation of the enterprise subsidiaryUnit: yuanSubsidiary subsidiaryfull name typethe type oftheenterpriseregisteredplacelegalrepresentativebusinessnatureregisteredcapitalcurrencyshareholding ratio(%)votingpowerratio (%)organization codeShandongZhongluaquaticshippingholdingsubsidiaryco., LTD.ShandongQingdao,WangHuan refrigerated transport22,505,600.00CNY100%100% 163071233companyHabitatInternationalCorporationholdingsubsidiaryco., LTDpanamaLI Wenyi12,476,146.00CNY100%100%ShandongprovinceZhongLuoceanLTDholding shandongsubsidiary yantaili Mingfoodprocessing75,593,300.00CNY100%100% 729277389(yantai)food co.Subsidiary full subsidiary type the type of the enterprise shall be registered legal representative business nature registered capitalcurrency shareholding ratio (%) voting power ratio (%) organization codeShandong ZhongLu aquatic shipping company holding subsidiary co., LTD., shandong Qingdao WangHuan refrigerated transport22505600.00 CNY 100% 100% 163071233HabitatInternationalCorporation holding subsidiary co., LTD., panama levin servants refrigerated transport 12476146.00 CNY 100%100%Shandong province ZhongLu ocean (yantai) food co., LTD holding subsidiary co., LTD., shandong yantai li Ming food processing75593300.00 CNY 100% 100% 729277389CSG Holding Co., Ltd.4. Other related party situation of this enterprise'sFull-Text of Semi-Annual Report 2012Other related party namethe company relationshiporganization codeThe illustration of the enterprise of other associated party5. the affiliated party transactions(1) purchase goods and services tableUnit: yuanAmount in this periodAmount in last periodRelated partyconnected transactioncontentconnectedtransaction pricingmethods anddecision-makingprocessAmountAccounted for theproportion of thesametradeamount(%)amountAccounted for theproportion of thesametradeamount(%)Selling goods, providing labor services tableUnit: yuanAmount in this periodAmount in last periodRelated partyconnected transactioncontentconnectedtransaction pricingmethods anddecision-makingprocessAmountaccountedfor theproportion of thesametradeamount(%)amountaccountedfor theproportion of thesametradeamount(%)(2) the situation of correlation custody/contractThe table the of company entrusted management/contractingCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012Unit: yuanTheclient/contract-out partynameentrustedparty/contractor namethe client/contractassetssituationthe client/contract clientassets /contractinginvolves the asset typesamountthe client entrusted/co/contracting ntractinception terminationday dayhostingincome/contractingincomepricingunder thereportperiodconfirmedmanagedearnings/contractrevenuethe/contractrevenue toaffect ourcompanyThe company entrusted management/out package tableTheclient/contract-out partynameentrustedparty/contractor namethe client/contractassetssituationthe client/contract clientassets /contractinginvolves the asset typesamountthe client entrusted/co/contracting ntractinception terminationday dayhostingincome/contractingincomepricingunder thereportperiodconfirmedmanagedearnings/contractrevenuethe/contractrevenue toaffect ourcompanyCorrelation custody/contract case specification（3）The situation of the correlation leasingTable of company profile for rentUnit: yuanThe lessornamelessee namelease assettypeleasedassetssituationinvolvingthe leasedassetamountthe leasebeginningdatethe date ofexpiry ofthe leaserentalincomepricingunder thereportperiodconfirmrentalrentalincomeaffectingourcompanyincomeSituation table of company to rentThe lessornamelessee namelease assettypeleasedassetssituationinvolvingthe leasedassetamountthe leasebeginningdatethe date ofexpiry ofthe leaserentalincomepricingunder thereportperiodconfirmrentalrentalincomeaffectingourcompanyincomeCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012The situation of the correlation leasing（4）the situation of correlation securityUnit: yuansecuring partysecured partyguarantee amountguarantee inceptiondateguarantee due dateguarantee isperformed？statement of correlation guarantee（5）related party money lendingUnit: yuanRelated partylending amountinitial dayexpire datenoteBorrowed inter-bankOpen out（6）situation of related party assets transfer, debt restructuringUnit: yuanthis happening amountprior period happeningamountconnectedAccounteAccounteRelated partyconnectedtransactiontypeconnectedtransaction contenttransactionpricing methodsanddecision-makingAmountd for theproportion of thesameAmountd for theproportion of thesame(7) Other connected transactionprocesstradeamount(%)tradeamount(%)CSG Holding Co., Ltd.Full-Text of Semi-Annual Report 20126. Related party accounts receivable accounts payableCompanies affiliated party receivable moneyUnit: yuanThe name of the projectrelated partythe final amountThe initial amountShandong province,The inside salesZhongLu ocean (yantai)3,310,725.38food co., LTDMoney of the company coping with related partyThe name of theprojectrelated partythe final amountThe initial amountX) Share-based payment1. The overall situation of share-based paymentCompany's current period granted the rights andinterests of the total toolCompany's current period the exercise the rightsand interests of the total toolCompany's current period failure the rights andinterests of the total toolCompany's final issue out of stock optionexercise price range and remaining term of thecontractCompany's final other equity instruments theexercise price range and remaining term of thecontractThe illustration of share-based payment2. rights to equity-settled share-based payment situationUnit: yuangranted a method to determine the Fair value of the equityinstrumentst he best estimate of the method to determine the number ofvested equity instruments,major reasons for the difference between the estimate of thisestimation and the previousTillCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012the cumulative amount of capital reserves in rights equity-settledshare-based paymentthe total cost of rights equity-settled share-based paymentconfirmationInstructions to rights equity-settled share-based payment3. the cash-settled share-based payment situationUnit: yuancompany's, on the shares or other equity instruments calculatedand determined on the basis of the method to determine the fairvalue of the liabilityLiabilities for cash-settled share-based payments from thecumulative amount of liabilitiesThe cash-settled share-based payment and confirm the total costThe cash-settled share-based payment instructions4. paying the service in shareUnit: yuanIn share-based payment in return for employee the total amountof servicesIn share-based payment in return for employee the total amountof other services5. share-based payment modifications, termination conditions(XI) Other matters1. Pending litigation or arbitration formation of contingent liabilities and financial impact2. for other units to provide security for debt formation of contingent liabilities and financial impactJune 30, 2012, the company existing guaranty of the following:Secured partyguarantee amountborrowing time limitguarantee(yuan)Qingdao double whalepharmaceutical co., LTD.38,037,681.652002.2-2006.7Shandong Zhonglu pelagic fishery co.,LTDNote: The report period, our company atomic company - Qingdao double whale pharmaceutical co., LTD. which has returned to theagricultural bank of China Qingdao shibei two branch 50 million yuan project loan of 11962318.35 yuan, the company for the doubleCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012whale pharmaceutical guarantee principal reduced to 38037681 usd yuan, on February 26, 2010, Shenzhen jing "investmentdevelopment co., LTD. And the company signed the pledge equity agreement, held by the Qingdao international costume city realestate investment co., LTD. 45.5% stake, value 67.1125 million yuan pledged to give the company, as the company for Qingdaodouble whale pharmaceutical in the agricultural bank of China Qingdao branch shibei the second branch of the 50 million yuanproject loan (the project loans are" owe loan principal usd 38037681 yuan) to provide a guarantee counter guarantee, the qualitativetime limit to the company after the termination of the security liability termination; The above equity has pledged in March 2010 10Qingdao city administration for industry and commerce (qingcheng) shares pledge registration set word [2010] no. 0004 registration.Mortgage registration Numbers: 3702141003100004.On April 25, 2012, Qingdao doubles whale pharmaceutical returned to the agricultural bank of China Qingdao shibei two branch 3million yuan project loan, the company for the double whale pharmaceutical guarantee principal reduced to 38037681 yuan.Expected the security matters will not affect the normal operation.Other contingent liabilities and financial effect:(XII) commitment matters1, major commitment matters2, the promise of performance(XIII) the date of the balance sheet items1、、important matters that the date of the balance sheetUnit: yuanthe projectContentthe financial position andoperating results of the impactnumber cannot estimate thenumber of influence reasons2. situation description of the date of the balance sheet, profit distributionUnit: yuanIntends to distribute the profits or dividendsAfter approved by the profits or dividends declared3. The date of the balance sheet that other matters(XIV) other important matters1, non-monetary assets exchange2, debt restructuring3, merger of enterprises,4 the lease5, the final issue abroad, may be converted into shares of financial tools6, annuity plan main contents and major changesCSG Holding Co., Ltd.7, other need disclosure of important matters(XV) Parent company financial statement main project comment1, accounts receivable(1) accounts receivablethe final numberFull-Text of Semi-Annual Report 2012initial numberThe book balancebad debt reservebook balanceprovision for bad debtsTypeAmountproportion(%)amountproportion (%)amountproportion (%)amountproportion (%)Single amount major andsingle withdrawal baddebt reserve accounts0.000.000.000.00receivableAccording to the combination withdrawal bad debt reserve accounts receivableAgeing analysiscombinationCombination small meter17,187,781.06 100%17,187,781.06 100%5,689,663.225,689,663.2233.1%33.1%5,935,530.505,935,530.50100%100%5,702,582.49 96.08%5,702,582.49 96.08%Single amount althoughnot important but singlewithdrawal bad debt0.000.000.000.00reserve accountsreceivableTotal17,187,781.06--5,689,663.22--5,935,530.50--5,702,582.49--Accounts receivable kinds of explanation:The final single amount major and single withdrawal bad debt reserve accounts receivableQuality - do not apply forCombination, the ageing analysis withdrawal bad debt reserve accounts receivable:For quality - do not applyfinal numberinitial numberAgeingThe book balanceamountproportion (%bad debt reservebook balanceAmountthe provision for badproporti debtson (%)Within 1 yearAmong them------------6 months lessthan11,495,268.40 66.88%295.74221,735.413.74%11,086.776 months to 13,494.650.02%349.4724,777.080.42%2,477.71CSG Holding Co., Ltd.yearFull-Text of Semi-Annual Report 2012Within 1 yearsmall meter11,498,763.0566.9%645.21246,512.494.16%13,564.481 to 2 years2 to 3 years3 years orabove3 to 4 years5,689,018.0133.1%5,689,018.015,689,018.01 95.84%5,689,018.014 to 5 years5 years oraboveTotal5,689,018.0133.1%5,689,018.015,689,018.01 95.84%5,689,018.01Combination, the balance percentage method withdrawal bad debt reserve accounts receivable:Quality - do not apply forCombination, the other methods withdrawal bad debt reserve accounts receivable:Quality - do not apply forThe final single amount although not important but single withdrawal bad debt reserve accounts receivableQuality - do not apply for(2) Accounts receivable situation of switch back or turn back in this periodunit： yuanContent of accountsreceivabletotalReason of switch andturn back--Basis of determineOriginal provision forbad debts--Turn back or withdrawbefore had accumulatedwithdrawal bad debtreserve amountAmount of switch orturn back--The final single amount major or even though it is not important but separatelyimpairment test accounts receivable bad debt reserve withdrawal：Content of accountsreceivabletotalBook balanceBad debt amountWithdrawal proportion（%）--reason--Single amount not important but according to credit risk characteristics after the combination of the portfolio risk bigger accountsreceivable instructions：sumCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012(3) Accounts receivable situation of actual cancel after verification in this periodunit： yuanName of companytotalNature of accountsreceivable--Cancel time--Cancel amount0.00Cancel reason--Whether because ofconnectedtransaction produce--Statement of accounts receivable cancel：(4) This report period in the account receivable holding company 5% (including 5%) or more of the voting rights of the shareholderssituation shares□ Applicable √ Not applicable(5) Large amount of other accounts receivable properties or content(6) Top-five organization of account receivablesUnit: yuanProportion inName of organization1FengQun aquatic products co., LTD2. .PANDARelations with CompanyNon-related enterpriseNon-related enterpriseSum8,178,628.313,600,962.12Account ageWithin 6 months3-year-abovetotal of accountreceivables (%)47.58%20.95%3. Shandong(Yantai)Food Co.,ZhongluOceanicsubsidiary3,310,725.38Within 6 months19.26%4. Haifeng Co.,5. Han XueTotalNon-related enterpriseNon-related enterprise——430,625.10293,209.2015,814,150.113-year-above3-year-above——2.51%1.71%92.01%(7) Accounts receivable associated party situationunit： yuanName of companyRelationship with the companyProportion in total of accountreceivables (%)total--0.000%(8) Transferring amount of accounts receivable in unsuitable terminated recognition conditions is yuan(9) To accounts receivable for the asset securitization, this needs to briefly explain related trade arrangement2. Other accounts receivable(1) Other accounts receivable classified according to category:Balance at period-endBalance at year-beginBook balanceProvision for bad debtsBook balanceProvision for bad debtsCategoryProportioProportioProportioProportioAmountnAmountnAmountnAmountn(%)(%)(%)(%)CSG Holding Co., Ltd.Balance at period-endFull-Text of Semi-Annual Report 2012Balance at year-beginBook balanceProvision for bad debtsBook balanceProvision for bad debtsCategoryProportioProportioProportioProportioAmountnAmountnAmountnAmountn(%)(%)(%)(%)Other accountreceivable withsingle majoramountwithandsingleitem bad debtprovisionwithdrawal0.000.000.000.00Other accountreceivable ofbaddebtprovisionwithdrawal bycombinations(2)Combination of ageanalysisSubtotal32,853,721.8132,853,721.81100%100%7,776,983.387,776,983.3823.67%23.67%66,299,935.3266,299,935.32100%100%7,757,123.817,757,123.8111.7%11.7%Other accountreceivable withminor amountbut with single0.000.000.000.00item bad debtprovisionwithdrawalTotal32,853,721.81--7,776,983.38--66,299,935.32--7,757,123.81--Statements of other types of accounts receivable:The final single amount major and individual provision of other receivables provision for bad debts□ Applicable √ Not applicableIn the combination, the ageing analysis of other receivables provision for bad debts□ Applicable √ Not applicableunit： yuanBalance at period-endBook balanceBalance at year-beginBook balanceAccount agesumProportiProvision for bad debtsonsumProportionProvision for bad debtsWithin one year(%)(%)including：------------Within 6 months6 months to 1year5,758,800.67 17.53%19,427,065.81 59.13%106,176.274,569.7758,610,222.2921,857.7088.4%0.03%88,700.702,185.77----CSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012Subtotal withinone year25,185,866.48 76.66%110,746.0458,632,079.99 88.43%90,886.471 to 2 years2 to 3 years132.843,050.000%0.01%39.851,525.00132.843,050.000.01%0.01%39.851,525.00Over 3 years7,664,672.49 23.33%7,664,672.497,664,672.49 11.55%7,664,672.493 to 4years4 to 5yearsOver 5yearstotal7,664,672.49 23.33%32,853,721.817,664,672.497,776,983.387,664,672.49 11.55%66,299,935.327,664,672.497,757,123.81In combinations, account receivable with bad debt provision withdrawal by method of balancepercentage：□ Applicable √ Not applicableIn combinations, account receivable with bad debt provision withdrawal by method of othermethods：□ Applicable √ Not applicableThe final single amount although not significant but single plan carry the provision for accounts receivable□ Applicable √ Not applicable(2) Other accounts receivable of switch back or turn back in this periodunit： yuanContent of accountsreceivabletotalReason of switch andturn back--Basis of determineOriginal provision forbad debts--Turn back or withdrawbefore had accumulatedwithdrawal bad debtreserve amountAmount of switch orturn back--The final single amount major or even though it is not important but separatelyimpairment test accounts receivable bad debt reserve withdrawal：Content of accountsreceivableTotalBook balanceBad debt amountWithdrawal proportion（%）--reason--Single amount not important but according to credit risk characteristics after the combination of the portfolio risk bigger accountsreceivable instructions：(3) Other accounts receivable situation of actual cancel after verification in this periodunit： yuansumCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012Name of companytotalNature of accountsreceivable--Cancel time--Cancel amount0.00Cancel reason--Whether because ofconnectedtransaction produce--Statement of other accounts receivable cancel：(4) This report period in other account receivable holding company 5% (including 5%) or more of the voting rights of theshareholders situation shares□ Applicable √ Not applicable(5) Large amount of other accounts receivable properties or content(6) Other top-five organization of account receivablesUnit: yuanProportion inName of organization1 ZhongLu aquatic shipping co., LTDRelations with CompanysubsidiarySum14,426,655.09Account age6 months to oneyeartotal of accountreceivables (%)43.91%2. YAW ADDOCOMPANY LIMITEDFISHERIESsubsidiary5,786,784.716 months to oneyear17.61%3. Shandong(Yantai)Food Co.,ZhongluOceanicsubsidiary1,300,000.006 months to oneyear3.96%4. In the industry investment co., LTD5. PICCTotalNon-related enterpriseNon-related enterprise——4,281,620.00414,411.0126,209,470.813-year-aboveWithin 6 months——13.03%1.26%79.77%(7) Other accounts receivable associated party situationunit： yuanName of companyRelationship with the companyProportion in total of accountreceivables (%)1. ZhongLu aquatic shippingco., LTD2.YAW ADDO FISHERIESCOMPANY LIMITED3 Shandong Zhonglu Oceanic(Yantai)Food Co.,totalsubsidiarysubsidiarysubsidiary--14,426,655.095,786,784.711,300,000.0021,513,439.8043.91%17.61%3.96%65.48%(8) Transferring amount of other accounts receivable in unsuitable terminated recognition conditions is yuan(9) To other accounts receivable for the asset securitization, this needs to briefly explain related trade arrangement3. Long-term equity investmentItemIndustryCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012Explanation ofdifferenInvestedunitsCalculationmethodInvestmentcostBalanceatyear-beginIncreaseordecreaseBalanceatperiod-endShareholdingproportion ininvestedunits(%)Votingrightproportion ininvestedunits(%)cebetweenshareholdingproportion andvotingDevaluationprovisionAccruingdevaluationprovision inthisperiodCashdividendinthisperiodrightproportionChinaSouthernSecuritiesCo., Ltd.Costmethod33,000,000.0033,000,000.0033,000,000.000.870.8733,000,000.00HABITATINTERNATIONALCORP.Costmethod12,476,145.6012,476,145.6012,476,145.60100.00100.00ShandongProvinceZhongluFisheriesShippingCostmetho21,380,320.0022,869,513.3822,869,513.38100.00100.00CompanyShandongProvincedZhongluOcean(Yantai)FoodsCostmetho32,280,000.0055,448,185.2455,448,185.2474.2374.23CompanydTotal——99,136,465.60123,793,844.22123,793,844.22——————33,000,000.004. Operating income and operating cost(1) Operating income and operating costAmount of this periodAmount of last periodMain business incomeOther business incomeTotal business incometotal74,128,085.092,841,489.8363,054,354.15140,023,929.0779,955,746.301,197,238.0054,001,778.57135,154,762.87(2) Main business classified according to industry:√Applicable□ Not applicableUnit: yuanAmount of this periodMain business income Main business costAmount of last periodMain business income Main business costOffshorere-processingfishingand73,530,169.5961,595,950.5879,955,746.3053,214,118.04IndustryitemCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012others597,915.50517,939.75Total74,128,085.0962,113,890.3379,955,746.3053,214,118.04(3) Main business classified according to product:√Applicable□ Not applicableUnit: yuanAmount of this periodMain business income Main business costAmount of last periodMain business income Main business costtunaothersTotal73,530,169.59597,915.5074,128,085.0961,595,950.58517,939.7562,113,890.3379,955,746.3079,955,746.3053,214,118.0453,214,118.04(4) Main business classified according to area:√Applicable□ Not applicable(5) Operating income of top 5 clients of the Company:Item1. FengQun aquatic products co., LTD2. Ningbo Fengsheng Food Co., Ltd.3. ZhongLu yantai food co., LTD4. Fuzhou top taste food co., LTD5. GhanaTotalOperating income14,972,292.0711,334,558.9147,183,789.501,071,315.90597,915.5075,159,871.88Proportion in total operating income of theCompany (%)19.45%14.73%61.3%1.39%0.78%97.65%Operating income instructions5. Income from investment(1) Investment income detailunit： yuanCost accounting method of a long-term equity investment incomeThe equity method accounting of a long-term equity investment incomeDisposing of a long-term equity investment from theinvestment incomeHolding the trade during the financial assets obtained investment incomeThe held-to-maturity investment made during the investmentAmount in this periodAmount in previous period(3)ItemCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012income obtained investment incomeHold available for sale financial assets obtained duringinvestment incomeDisposal of financial assets transaction has investmentincomeThe held-to-maturity investment achieved investment incomeAvailable for sale financial assets obtained such as investment gainsotherstotal(2) According to the method of cost accounting of a long-term equity investment incomeunit： yuanInvested entitytotalAmount in this periodAmount in previousperiodThe reason of increasing, decreasing and changing from this period to the previous--According to the equity method accounting of a long-term equity investment incomeunit：yuanInvested entitytotalAmount in this periodAmount in previousperiodThe reason of increasing, decreasing and changing from this period to the previous--Investment income instructions:6. Supplementary information of cash flow statementAmount of this periodAmount of last period1．Reconciliation of net profit to cash flows from operating activities:Net profitAdd: Provision for impairment of assetsDepreciation of fixed assets, oil assets and productive biological assetsAmortization of intangible assetsAmortization of long-term prepaymentsLosses on disposal of fixed assets, intangible assets and other long-termassets (income is listed with “- ”)Losses on scrapping of fixed assets(income is listed with “- ”)Losses on fair value change(income is listed with “- ”)--15,592,503.236,940.305,517,259.9316,646.704,779,798.56--45,335,324.78101,259.957,300,147.2213,446.72-1,399,732.24-400.00ItemCSG Holding Co., Ltd.Full-Text of Semi-Annual Report 2012Amount of this periodAmount of last periodFinancial expenses(income is listed with “- ”)Investment losses(income is listed with “- ”)Decrease in deferred income tax assets (increase is listed with “-”)Increase in deferred income tax liabilities (decrease is listed with “- ”)Decrease in inventories(increase is listed with “-”)Decrease in operating receivables(increase is listed with “-”)Increase in operating payables(decrease is listed with “- ”)OthersNet cash flows from operating activities2．Significant investing and financing activities that do not involve cashreceipts and paymentsConversion of debt into capitalConvertible bonds to be expired within one yearFixed assets under finance lease3．Net increase in cash and cash equivalentsCash at the end of the yearLess: Cash at the beginning of the periodAdd: Cash equivalents at the end of the periodLess: Cash equivalents at the beginning of the periodNet increase in cash and cash equivalents16,051.20961,402.57-8,170,470.7555,444,506.4474,164,638.18----65,297,639.5124,327,292.0640,970,347.45617,120.00-22,396,421.43-55,941,505.235,015,399.11-21,355,361.12----29,093,143.0651,315,321.09-22,222,178.037. Assets and liabilities of reversing to buy the evaluation valueunit：yuanevaluate the value of credit assets, liabilities nameassessed valueOriginal carrying valueassetliabilities16. . Supplementary Information to the Financial Statements1. ROE and EPSProfit of this periodNet profit attributable to common shareholders of the CompanyNet profit attributable to common shareholders of the Companyafter deducting non-recurring gains/lossesWeighted averageROE (%)5.87%7.7%Basic EPSEPS0.100.13Diluted EPS0.100.13CSG Holding Co., Ltd.Full-Text of Semi-Annual Report 20122. Statement of company mainly accounting statements project abnormal situation andreasonsSection VIIII. Documents Available for ReferencesDocuments Available for References(I) Text of Semi-annual Report carried with the personal signature of Chairman of the Board;(II) Text of financial report carried with the signature and seals of legal representative, principal ofaccounting work, and principal in charge of accounting organization;(III) Text of all documents that have been publicly disclosed on newspapers and periodicalsdesignated by CSRC during the report period;(IV) Text of Articles of Association of the Company;(V) Other relevant documents.Shandong Zhonglu Oceanic Fisheries Company LimitedChairman of the Board: Lu LiangxingAugust 16, 2012。