ST中华Ｂ2003年半年度报告（英文版）(5)

Cash paid for dividends or profit distributing, repayment of interest -

Including: dividend paid to minority shareholders by subsidiary company -　

Cash paid for repayment interest -

Other cash paid concerning financing activities - -Subtotal of cash outflows - -Net cash flows arising from financing activities6,000,000.00 6,000,000.00 IV. Influence on cash from fluctuation in exchange rate

V. Net increase of cash and cash equivalents (562,450.52)(273,211.16)

Statement of Cash Flow (Con.)

Items

Jan.-Jun. 2003

　Consolidation

The Company

I. Investment and financing activities with no cash

incomings/outgoings involved

Debts repaid with fixed assets - -Debts repaid with investment - -Long-term investment made with fixed assets - -Debts repaid with inventory - -II. Adjusting net profit to cash flows for operating activities

Net profit 1,324,879.19 1,324,879.19 Add: Minority interests (5,922.04)(5,922.04) Un-deficit loss of subsidiary company (122,402.22)

Withdrawal of depreciation of fixed assets 7,304,120.00 7,257,195.06 Withdrawal of provision for devaluation of fixed assets

Projected liabilities

Amortization of long-term expenses to be apportioned

Decrease of expenses to be apportioned 5,901.29 35,977.29 Increase of accrued expenses 29,200.00

ST中华Ｂ2003年半年度报告（英文版）

Losses on disposal of fixed assets, intangible assets and other

long-term assets (Less: income) (19,610,109.35)(19,610,109.35) Loss on rejection of fixed assets - -Financial expenses 10,754,308.44 10,766,975.23 Investment loss (Less: income) -4,373.17 -119,293.56 Decrease of inventories (Less: increase) (1,029,925.29)(1,027,860.29) Decrease of receivable in operation (Less: increase) 2,756,767.24 3,997,299.90 Increase of payable in operation (Less: decrease) (8,117,960.41)(9,057,411.60)

Net cash flows arising from operating activities(6,715,516.32)(6,438,270.17)

III. Net increase of cash and cash equivalents

Balance of cash at the end of the report period 6,237,323.70 1,339,589.21 Less: Balance of cash at the begin of the report period 6,799,774.22 1,612,800.37 Add: Balance of cash equivalents at the end of the report period

Less: Balance of cash equivalents at the begin of the report period

Net increase of cash and cash equivalents (562,450.52)(273,211.16)　

　　Statement of Provision for Devaluation of Assets June 30, 2003 Unit: RMB

Items Balance at the

begin of the

period

Increase in this

report period

Switching back

in this report

period

Balance at the end

of the period

I. Total of provision for bad debts 2,085,528,311.98 --- 2,085,528,311.98 Including: accounts receivable 1,607,207,136.69 --- 1,607,207,136.69

Other receivables 478,321,175.29 --- 478,321,175.29 II. Total of provision for falling

price of short-term investment

--- --- --- Including: Stocks investment --- --- --- Bonds investment --- --- --- III. Total of provision for falling

price of inventories

264,351,109.97 --- 264,351,109.97

ST中华Ｂ2003年半年度报告（英文版）

Including: Merchandise inventories 30,795,856.26 --- 30,795,856.26

Low price expendable 1,704,100.10 --- 1,704,100.10 Raw material 231,851,153.61 --- 231,851,153.61

IV. Total of provision for

36,866,504.96 --- 4,373.17 36,862,131.79 devaluation of long-term

investment

Including: Long-term equity

36,866,504.96 --- 4,373.17 36,862,131.79 investment

Long-term credit investment --- --- --- ---

V. Total of provision for

76,566,184.10 --- -- 76,566,184.10 devaluation of fixed assets

Including: Building2,084,874.23 --- --- 2,084,874.23 Machinery and equipment 74,481,309.87 --- -- 74,481,309.87

VI. Provision for devaluation of

--- --- --- --- intangible assets

Including: Patent right --- --- --- --- Trademark right --- --- --- ---

VII. Provision for devaluation of

2,320,000.00 --- --- 2,320,000.00 construction in progress

VIII. Provision for devaluation of

--- --- --- ---

commission loan