Stock code: 000017 200017 short form of the stock: Zhonghua-A Zhonghua-B Notice No.: 2021-041

Shenzhen China Bicycle Company (Holdings) Limited

The Third Quarterly Report for 2021

The Company and whole members of the BOD guarantee that the information disclosed is true

accurate and complete and there are no any fictitious records misleading statements or important

omissions.Important content reminder:

1. Board of Directors Supervisory Committee all directors supervisors and senior executives of

Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company)

hereby confirm that there are no any fictitious statements misleading statements or important

omissions carried in this report and shall take all responsibilities individual and/or joint for the

reality accuracy and completion of the whole contents.

2. Principal of the Company Person in Charge of Accounting Works and Person in Charge of

Accounting Organ (Accounting Officer) hereby confirm that the Financial Report of the Third

Quarterly Report is authentic accurate and complete.

3. Whether the Third Quarterly Report has been audited or not

□Yes √No

I. Main financial data

(i) Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data or not

□Yes √No

Increase/decrease from

Increase/decrease in the

year-begin to period-end

period compared with the

Current period Year-begin to period-end compared with the same

same period of the

period of the previous

previous year

year

Operating income (Yuan) 29113392.89 -27.61% 83243710.49 0.45%

Net profit attributable to

shareholders of the listed 575788.96 -76.65% 1941282.30 -63.12%

company (Yuan)

Net profit attributable to

shareholders of the listed

company after deducting 326846.26 -86.26% -89748.03 -101.96%

non-recurring gains and

losses (Yuan)

Net cash flow arising

————-5824421.10-281.09%

from operating activities

1(Yuan)

Basic earnings per share

0.001-77.78%0.0035-63.16%

(Yuan /Share)

Diluted earnings per

0.001-77.78%0.0035-63.16%

share (Yuan /Share)

Weighted average ROE 4.58% -17.53% 16.35% -37.63%

Increase/decrease at the period-end compared with

End of current period End of previous year

the end of the previous year

Total assets (Yuan) 95740667.64 91742769.99 4.36%

Net assets attributable to

shareholder of listed 12846513.28 10905230.98 17.80%

company (Yuan)

(ii) Items and amounts of non-recurring profit (gains)/losses

√ Applicable □ Not applicable

Unit: Yuan

Amount from

Item Amount for the period year-begin to Note

period-end

Government subsidy recorded in current gains/losses

(except those closely related to the Company’s

normal operation and those continuously enjoyed on 97500.00 397500.00

a fixed or quantitative basis with certain standards in

accordance with national policy regulations)

Reversal of the account receivable depreciation

60000.001417466.13

reserves subject to separate impairment test

Other non-operating income and expenses other than

87005.40244669.80

the above

Impact on minority shareholders’ equity

-4437.3028605.60

(post-tax)

Total 248942.70 2031030.33 --

Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:

□ Applicable √ Not applicable

The Company does not have other gain/loss items that qualified the definition of non-recurring profit (gains)/lossesExplanation on those non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss

□ Applicable √ Not applicableThe Company does not have the non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss

2(iii) Particulars about changes in items of main accounting data and financial index and explanations of

reasons

√ Applicable □Not applicable

Item Period-end or the Period-begin or last Year-on-year Reason for change

Period period increase and

decrease

Sales expense 1386181.37 2414925.52 -42.60% The sales expense from jewelry business declined

R&D expenses 3373918.21 1118618.85 201.61% R&D expenses for the jewelry & gold business

increased

Credit impairment loss 1356010.98 170387.85 695.84% The bad debt provision for account receivable

(loss is "-") recovered or reversed increased

Net profit 2202660.68 6030862.82 -63.48% In the period except for the jewelry & gold

business gross profit from other business income

declined

Net profit attributable to 1941282.30 5263215.15 -63.12% In the period except for the jewelry & gold

shareholders of the parent business gross profit from other business income

company declined

Net cash flow from -5824421.10 3216397.73 -281.09% Prepayments received in the prior period

operating activities

Net cash flow from 0.00 9825000.00 -100.00% Received minority shareholders investment from

financing activities capital increase of subsidiary Xinsen Company in

the prior period

Prepayments 2425878.95 816541.52 197.09% Prepayments for goods increased in the period

Other current assets 1340532.85 2715425.31 -50.63% Retained VAT refund received in the period

Other non-current assets 1135849.05 400000.00 183.96% The intermediary fee for quantitative issuance

increased in the period

Accounts payable 12888008.62 9606144.94 34.16% Account payable for goods increased in the period

Employee compensation 796081.92 1459244.07 -45.45% The wages payable last year was paid in the period

payable

Other current liabilities 134108.10 1175251.38 -88.59% The taxes corresponding to contractual liability

decreased

II. Shareholders Information

(i) Total number of common shareholders and preference shareholders with voting rights recovered and

top ten common shareholders

Unit: Share

Total preference shareholders

Total common shareholders at the with voting rights recovered at

403430

end of report period end of reporting period (if

applicable)

Top ten shareholders

Amount of Information of shares pledged

Shareholder’s Nature of Proportion of Amount of shares

restricted shares tagged or frozen

name shareholder shares held held

held State of share Amount

Shenzhen

Guosheng Energy Domestic

Investment non-state-owned 11.52% 63508747 0

Development legal person

Co. Ltd.

3UOB Koy Hian

Foreign legal

(Hong Kong) 2.89% 15907850 0

person

Co. Ltd.Guosen Securities

(Hong Kong) Foreign legal

2.52%139094250

brokerage Co. person

Ltd.Shenwan

Hongyuan Foreign legal

1.50%82811560

Securities (Hong person

Kong) Co. Ltd.Lhasa Xingqing

Domestic

Network

non-state-owned 0.83% 4600255 0

Technology Co.legal person

Ltd.Domestic nature

Li Huili 0.71% 3891124 0

person

Domestic nature

Ge Zhiqiong 0.64% 3525152 0

person

Domestic nature

Xu Hongbo 0.53% 2927319 0

person

China Merchants

State-owned legal

Securities Hong 0.52% 2894135 0

person

Kong Co. Ltd.Shenzhen China

Bicycle Company

(Holdings)

Domestic

Limited -Special

non-state-owned 0.47% 2602402 0

account for

legal person

property disposal

of bankrupt

enterprise

Top ten shareholders with unrestricted shares held

Type of shares

Shareholder’s name Amount of unrestricted shares held

Type Amount

Shenzhen Guosheng Energy RMB common

6350874763508747

Investment Development Co. Ltd. shares

Domestically

UOB Koy Hian (Hong Kong) Co.

15907850 listed foreign 15907850

Ltd.shares

Domestically

Guosen Securities (Hong Kong)

13909425 listed foreign 13909425

brokerage Co. Ltd.shares

Domestically

Shenwan Hongyuan Securities

8281156 listed foreign 8281156

(Hong Kong) Co. Ltd.shares

Lhasa Xingqing Network RMB common

46002554600255

Technology Co. Ltd. shares

Domestically

Li Huili 3891124 listed foreign 3891124

shares

RMB common

611500

shares

Ge Zhiqiong 3525152 Domestically

listed foreign 2913652

shares

Domestically

Xu Hongbo 2927319 2927319

listed foreign

4shares

Domestically

China Merchants Securities Hong

2894135 listed foreign 2894135

Kong Co. Ltd.shares

RMB common

Shenzhen China Bicycle Company 1383313 shares

(Holdings) Limited -Special account

2602402

for property disposal of bankrupt Domestically

enterprise listed foreign 1219089

shares

Li Huili spouse of the Ji Hanfei the actual controller of he Company- Shenzhen Guosheng

Energy Investment Development Co. Ltd. holding B-share of the Company on behalf of

Explanation on associated

Shenzhen Guosheng Energy Investment Development Co. Ltd. beyond that the Company

relationship among the aforesaid

has no idea of whether other circulated shareholders belong to concerted action persons ruled

shareholders

in the Administration Norms for Information Disclosure of Change on Shareholding of

Shareholders of Listed Companies.Explanation on top 10 shareholders

involving margin business (if N/A

applicable)

(ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferred

stock held

□ Applicable √ Not applicable

III. Other significant events

√ Applicable □ Not applicable

1. Planning the non-public offering of the shares

On December 30 2020 the company held the third extraordinary shareholders' meeting of 2020 which deliberated and approved the

new plan of non-public offering of A-shares the total amount of funds to be raised from Wansheng Industrial Company through

non-public offering of shares will not exceed 293600000 yuan which will be used to supplement working capital after deducting

the issuance expenses. The offering will result in a change in control of the company. On 25 October 2021 the issue review

committee of China Securities Regulatory Commission (hereinafter referred to as CSRC) reviewed the application for the non-public

offering of A share under the name of Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the

Company). According to the review results the application of non-public offering of A share is approved. Currently the Company

has not received the written approval document yet from CSRC and will make another announcement after the official document

received from CSRC investors are advised to be aware of the risks of investment.

2. Termination of the “Urban Renewal Project Cooperation Contract of Zhonghua Garden Phase II”

In view of the fact that in the course of the urban renewal project of Zhonghua Garden Phase II on 1 March 2021 the standingcommittee of Shenzhen Municipal People’s Congress introduced and implemented the “Regulations on Urban Renewal of ShenzhenSpecial Economic Zone” which requires the proportion of household’s willingness to update should be increased to 95% before

declaring the demolition of urban renewal unit plans that reconstructed this leads to a high degree of uncertainty in the project.Based on the long-term development of the Company and in order to better solve the problems of handing the property certificate

issues left by history for residents of the Zhonghua Garden Phase II at the same time the Company held the 32nd session

(extraordinary) of 10th BOD and First Extraordinary Shareholders General Meeting of 2021 respectively dated 24 September 2021and 12 October to deliberated and approved the “proposal on termination of the Urban Renewal Project Cooperation Contract ofZhonghua Garden Phase II” and decided to terminated the Cooperation Contract with Jianzhi Industrial CBC ceased to be the

partner of the renewal project of Zhonghua Garden Phase II.

5IV. Quarterly financial statements

(i) Financial statement

1. Consolidate balance sheet

Prepared by Shenzhen China Bicycle Company (Holdings) Limited

September 30 2021

Unit: Yuan

Item September 30 2021 December 31 2020

Current assets:

Monetary fund 14057598.96 19887978.05

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assets

Note receivable 100000.00

Account receivable 64540892.85 55031424.70

Receivable financing

Accounts paid in advance 2425878.95 816541.52

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 614844.05 576770.36

Including: Interest receivable

Dividend receivable

Buying back the sale of financial

assets

Inventories 7212442.76 7729325.94

Contractual assets

Assets held for sale

Non-current asset due within one

year

Other current assets 1340532.85 2715425.31

Total current assets 90292190.42 86757465.88

Non-current assets:

Loans and payments on behalf

Debt investment

Other debt investment

Long-term account receivable

Long-term equity investment

Investment in other equity

instrument

Other non-current financial assets

Investment real estate

Fixed assets 3519457.42 3792133.36

Construction in progress

Productive biological asset

6Oil and gas asset

Right-of-use assets

Intangible assets

Expense on Research and

Development

Goodwill

Long-term expenses to be

apportioned

Deferred income tax asset 793170.75 793170.75

Other non-current asset 1135849.05 400000.00

Total non-current asset 5448477.22 4985304.11

Total assets 95740667.64 91742769.99

Current liabilities:

Short-term loans

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable

Account payable 12888008.62 9606144.94

Accounts received in advance

Contractual liability 16385928.38 15254713.38

Selling financial asset of

repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

Security sales of agency

Wage payable 796081.92 1459244.07

Taxes payable 688681.19 722321.02

Other account payable 37002909.07 37882805.52

Including: Interest payable

Dividend payable

Commission charge and

commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within

one year

Other current liabilities 134108.10 1175251.38

Total current liabilities 67895717.28 66100480.31

Non-current liabilities:

Insurance contract reserve

Long-term loans

Bonds payable

Including: Preferred stock

Perpetual capital

securities

Lease liability

7Long-term account payable

Long-term wages payable

Accrual liability

Deferred income

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities

Total liabilities 67895717.28 66100480.31

Owner’s equity:

Share capital 551347947.00 551347947.00

Other equity instrument

Including: Preferred stock

Perpetual capital

securities

Capital public reserve 627834297.85 627834297.85

Less: Inventory shares

Other comprehensive income

Reasonable reserve

Surplus public reserve 32673227.01 32673227.01

Provision of general risk

Retained profit -1199008958.58 -1200950240.88

Total owner’ s equity attributable to

12846513.2810905230.98

parent company

Minority interests 14998437.08 14737058.70

Total owner’ s equity 27844950.36 25642289.68

Total liabilities and owner’ s equity 95740667.64 91742769.99

Legal Representative: Li Hai

Person in charge of Accounting Works: Sun Longlong

Person in charge of Accounting Institution: Zhong Xiaojin

2. Consolidated Profit Statement (from the year-begin to the period-end)

Unit: Yuan

Item Current period Last period

I. Total operating income 83243710.49 82873336.15

Including: Operating income 83243710.49 82873336.15

Interest income

Insurance gained

Commission charge and

commission income

II. Total operating cost 82925156.41 77676054.36

Including: Operating cost 74415444.07 70342296.05

Interest expense

Commission charge and

commission expense

Cash surrender value

8Net amount of expense of

compensation

Net amount of withdrawal of

insurance contract reserve

Bonus expense of guarantee

slip

Reinsurance expense

Tax and extras 55786.17 69177.87

Sales expense 1386181.37 2414925.52

Administrative expense 3765804.02 3775988.47

R&D expense 3373918.21 1118618.85

Financial expense -71977.43 -44952.40

Including: Interest

expenses

Interest income -97043.54 -60866.79

Add: other income 2516.00 10105.77

Investment income (Loss is

listed with “-”)

Including: Investment income

on affiliated company and joint venture

The termination of income

recognition for financial assets measured

by amortized cost (Loss is listed with “-”)

Exchange income (Loss is

listed with “-”)

Net exposure hedging income

(Loss is listed with “-”)

Income from change of fair

value (Loss is listed with “-”)

Loss of credit impairment

1356010.98170387.85

(Loss is listed with “-”)

Losses of devaluation of asset

60509.73

(Loss is listed with “-”)

Income from assets disposal

24936.44

(Loss is listed with “-”)

III. Operating profit (Loss is listed with

1737590.795402711.85

“-”)

Add: Non-operating income 724960.80 859828.49

Less: Non-operating expense 82791.00 2727.32

IV. Total profit (Loss is listed with “-”) 2379760.59 6259813.02

Less: Income tax expense 177099.91 228950.20

V. Net profit (Net loss is listed with “-”) 2202660.68 6030862.82

(i) Classify by business continuity

1.continuous operating net profit

2202660.686030862.82(net loss listed with ‘-”)

2.termination of net profit (net losslisted with ‘-”)

(ii) Classify by ownership

1.Net profit attributable to owner’s

1941282.305263215.15

of parent company

2.Minority shareholders’ gains and

261378.38767647.67

losses

9VI. Net after-tax of other comprehensive

income

Net after-tax of other comprehensive

income attributable to owners of parent

company

(i) Other comprehensive income

items which will not be reclassified

subsequently to profit of loss

1.Changes of the defined

benefit plans that re-measured

2.Other comprehensive

income under equity method that cannot

be transfer to gain/loss

3.Change of fair value of

investment in other equity instrument

4.Fair value change of

enterprise's credit risk

5. Other

(ii) Other comprehensive income

items which will be reclassified

subsequently to profit or loss

1.Other comprehensive

income under equity method that can

transfer to gain/loss

2.Change of fair value of

other debt investment

3.Amount of financial assets

re-classify to other comprehensive

income

4.Credit impairment

provision for other debt investment

5.Cash flow hedging reserve

6.Translation differences

arising on translation of foreign currency

financial statements

7.Other

Net after-tax of other comprehensive

income attributable to minority

shareholders

VII. Total comprehensive income 2202660.68 6030862.82

Total comprehensive income

1941282.305263215.15

attributable to owners of parent Company

Total comprehensive income

261378.38767647.67

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.0035 0.0095

(ii) Diluted earnings per share 0.0035 0.0095

Enterprise combine under the same control in the Period the combined party realized net profit of 0.00 Yuan before combination and

realized 0.00 Yuan at last period for combined party

Legal Representative: Li Hai

Person in charge of Accounting Works: Sun Longlong

Person in charge of Accounting Institution: Zhong Xiaojin

103. Consolidated Cash Flow Statement (from the year-begin to the period-end)

Unit: Yuan

Item Current period Last period

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor 77209161.86 47915952.15

services

Net increase of customer deposit

and interbank deposit

Net increase of loan from central

bank

Net increase of capital borrowed

from other financial institution

Cash received from original

insurance contract fee

Net cash received from reinsurance

business

Net increase of insured savings

and investment

Cash received from interest

commission charge and commission

Net increase of capital borrowed

Net increase of returned business

capital

Net cash received by agents in sale

and purchase of securities

Write-back of tax received 1653129.81 46490.80

Other cash received concerning

9798843.0632533907.14

operating activities

Subtotal of cash inflow arising from

88661134.7380496350.09

operating activities

Cash paid for purchasing

commodities and receiving labor 73582783.96 54238192.62

service

Net increase of customer loans and

advances

Net increase of deposits in central

bank and interbank

Cash paid for original insurance

contract compensation

Net increase of capital lent

Cash paid for interest commission

charge and commission

Cash paid for bonus of guarantee

slip

Cash paid to/for staff and workers 6471234.93 4386729.44

Taxes paid 731237.64 795786.18

Other cash paid concerning

13700299.3017859244.12

operating activities

Subtotal of cash outflow arising from

94485555.8377279952.36

operating activities

Net cash flows arising from operating -5824421.10 3216397.73

11activities

II. Cash flows arising from investing

activities:

Cash received from recovering

investment

Cash received from investment

income

Net cash received from disposal of

fixed intangible and other long-term 64500.00

assets

Net cash received from disposal of

subsidiaries and other units

Other cash received concerning

investing activities

Subtotal of cash inflow from investing

64500.00

activities

Cash paid for purchasing fixed

5957.99

intangible and other long-term assets

Cash paid for investment

Net increase of mortgaged loans

Net cash received from

subsidiaries and other units obtained

Other cash paid concerning

investing activities

Subtotal of cash outflow from investing

5957.99

activities

Net cash flows arising from investing

-5957.9964500.00

activities

III. Cash flows arising from financing

activities

Cash received from absorbing

9825000.00

investment

Including: Cash received from

absorbing minority shareholders’ 9825000.00

investment by subsidiaries

Cash received from loans

Other cash received concerning

financing activities

Subtotal of cash inflow from financing

9825000.00

activities

Cash paid for settling debts

Cash paid for dividend and profit

distributing or interest paying

Including: Dividend and profit of

minority shareholder paid by

subsidiaries

Other cash paid concerning

financing activities

Subtotal of cash outflow from financing

activities

Net cash flows arising from financing

9825000.00

activities

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

12V. Net increase of cash and cash

-5830379.0913105897.73

equivalents

Add: Balance of cash and cash

19887978.056074367.91

equivalents at the period-begin

VI. Balance of cash and cash

14057598.9619180265.64

equivalents at the period-end

(ii) Explanation on financial statement adjustment

1. Financial statement adjustment at the beginning of the first year when implementation of new leasing

standards from 2021

□ Applicable √ Not applicable

2. Retrospective adjustment of the comparative data for initial implementation of new leasing standards

from 2021

□ Applicable √ Not applicable

(iii) Audit report

Whether the 3rd quarterly report has been audited or not

□Yes √ No

The 3rd quarterly report of the Company has not been audited.Board of Directors of

Shenzhen China Bicycle Company (Holdings) Limited

October 26 2021

13