| Short-term Investments |
Short-term
investments consisted of the following as of December 31, 2010
and December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
| |
|
Carrying Value |
|
|
Unrealized
Gains/(Losses)
|
|
|
Estimated Fair
Value
|
|
|
Estimated Fair
Value
|
|
| |
|
(RMB) |
|
|
(RMB) |
|
|
(RMB) |
|
|
(US$) |
|
|
|
|
|
|
|
Held-to-maturity
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Fixed rate time
deposits
|
|
|
319,774,660 |
|
|
|
— |
|
|
|
319,774,660 |
|
|
|
50,807,077 |
|
|
- Investment
contract
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- China Railway
Trust (3)
|
|
|
600,000,000 |
|
|
|
— |
|
|
|
600,000,000 |
|
|
|
95,330,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total short-term
investments
|
|
|
919,774,660 |
|
|
|
— |
|
|
|
919,774,660 |
|
|
|
146,137,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31,
2010 |
|
| |
|
Carrying
Value |
|
|
Unrealized
Gains/(Losses) |
|
|
Estimated
Fair
Value |
|
| |
|
(RMB) |
|
|
(RMB) |
|
|
(RMB) |
|
|
|
|
|
|
Held-to-maturity
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Fixed rate time
deposits
|
|
|
1,403,362,000 |
|
|
|
— |
|
|
|
1,403,362,000 |
|
|
- Investment
contract
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- New China
Trust (1)
|
|
|
500,000,000 |
|
|
|
— |
|
|
|
500,000,000 |
|
|
- Shanghai Lingang and
Anhui Hailuo (2)
|
|
|
1,350,000,000 |
|
|
|
— |
|
|
|
1,350,000,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total short-term
investments
|
|
|
3,253,362,000 |
|
|
|
— |
|
|
|
3,253,362,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
On August 21, 2009,
the Group entered into a two year investment contract amounting to
RMB500,000,000 with a fixed quarterly yield of 1.5% (6% per annum)
with new China Trust. The investment contract is secured by
45,040,000 A-shares of Shanghai Pudong Development Bank
(“PDB”), a company listed on the Shanghai Stock
Exchange. Management has accounted for this investment as
short-term investment held-to-maturity in accordance with ASC
320-10 at amortized cost adjusted for any related premiums
(discounts) over the estimated remaining period until maturity.
There was no impairment indicators present associated with these
investment contracts at December 31, 2010. Proceeds with
respect to this investment have been received by the Group on the
maturity date of August 21, 2011. |
| (2) |
On December 24, 2010,
the Company entered into investment contracts with Shanghai Lingang
and Anhui Hailuo amounting to RMB850,000,000 and RMB500,000,000,
respectively, with fixed interests of 4.0% and 4.2% per annum,
respectively and maturity of 150 days and 157 days, respectively.
The principal amounts of the Shanghai Lingang and Anhui Hailuo
investment contracts are wholly guaranteed by China Minsheng
Banking Corp. Ltd, a company that is listed on both the Shanghai
and Hong Kong Stock Exchange. Management has accounted for these
investment contracts as short-term investments held-to-maturity in
accordance with ASC 320-10 at amortized cost adjusted for any
related premiums (discounts) over the estimated remaining period
until maturity. There was no impairment indicators present
associated with these investment contracts at December 31,
2010. Proceeds with respect to these investments have been received
by the Group on May 30, 2011. |
| (3) |
During November 2011, the
Company made an investment in China Railway Trust (the
“Trust”), an affiliate of state owned China Railway
Group Limited, of RMB 600,000,000 (US$95,330,399), which was used
to fund a short-term loan provided from the Trust to Zhonghang
Wanke Co., Ltd. (“Zhonghang Wanke”), a large scale
commercial and residential real estate development company with
operations throughout the P.R.C., with an annual interest rate of
13% and a maturity term of one year. This short-term investment is
in a real estate project of Zhonghang Wanke, which excluding
management fees charged by the Trust, is expected to yield a net
return to the Company of 9.1%. The principal and interest of the
investment loan are collateralized by a certain land use right and
any associated construction-in-progress. The Company has accounted
for this investment loan as a short-term held-to-maturity
investment in accordance with ASC 320-10 at its amortized cost.
There was no impairment indicators associated with this
held-to-maturity investment at December 31, 2011. |
|