深华发B：2019年第一季度报告全文（英文版）

Shenzhen Zhongheng Huafa Co. Ltd.First Quarterly Report 2019

April 2019

Section I. Important Notes

Board of Directors and the Supervisory Committee of Shenzhen Zhongheng

Huafa Co. Ltd (hereinafter referred to as the Company) and its directors

supervisors and senior executives should guarantee the reality accuracy and

completion of the quarterly report there are no any fictitious statements

misleading statements or important omissions carried in this report and shall

take legal responsibilities individual and/or joint.

All Directors are attended the Board Meeting for Quarterly Report deliberation.

Li Zhongqiu person in charge of the Company Yang Bin person in charger of

accounting works and Wu Ai’jie person in charger of accounting organ

(accounting officer) hereby confirm that the Financial Statement of this

Quarterly Report is authentic accurate and complete.

Section II. Basic situation of the Company

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

□Yes √ No

Current period

At the same period of last

year

Changes of this period over

same period of last year

Operating income (RMB) 143921648.63 171620013.62 -16.14%

Net profit attributable to shareholders of

the listed company (RMB)

258233.98 307367.89 -15.99%

Net profit attributable to shareholders of

the listed company after deducting

non-recurring gains and losses (RMB)

196868.38 5469.74 3499.23%

Net cash flow arising from operating

activities (RMB)

19403902.99 337819.42 5643.87%

Basic earnings per share (RMB/Share) 0.0009 0.0011 -18.18%

Diluted earnings per share (RMB/Share) 0.0009 0.0011 -18.18%

Weighted average ROE 0.08% 0.10% -0.02%

At the end of the reporting

period

At the end of last year

Changes of this period-end

over same period-end of last

year

Total assets (RMB) 579621386.06 617090153.46 -6.07%

Net assets attributable to shareholder of

listed company (RMB)

324226234.72 323968000.74 0.08%

Items and amount of non-recurring gains and losses

√ Applicable □ Not applicable

In RMB

Item

Amount from year-begin to

period-end

Note

Gains/losses from the disposal of non-current asset (including the

write-off that accrued for impairment of assets)

-3018.00

Governmental subsidy reckoned into current gains/losses (not

including the subsidy enjoyed in quota or ration according to

national standards which are closely relevant to enterprise’s

business)

6000.00

Gain or loss on the investment or management of assets 30941.58

Other non-operating income and expenditure except for the

aforementioned items

37200.00

Less: impact on income tax 9757.18

Total 61365.60 --

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies

Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to

the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their

Securities to the Public --- Extraordinary Profit/loss explain reasons

□ Applicable √ Not applicable

In reporting period the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of

extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to

the Public --- Extraordinary Profit/loss

II. Total number of shareholders at the end of this report period and top ten shareholders

1. Total number of common shareholders at the end of this report period and top ten common shareholders

In shares

Total common stock shareholders in

reporting period-end

24818

Total preference shareholders

with voting rights recovered at

end of reporting period (if

applicable)

Top ten shareholders

Shareholder’s

name

Nature of

shareholder

Proportion of

shares held

Amount of shares

held

Amount of

restricted shares

held

Number of share pledged/frozen

State of share Amount

Wuhan

Zhongheng

Group

Domestic

non-state-owned

legal person

41.69% 118044194 0

Pledged 116100000

Frozen 116489894

SEG (HONG

KONG) CO.

LTD.

Overseas legal

person

5.85% 16569560 0

Pledged 0

Frozen 0

GOOD HOPE

CORNER

INVESTMENTS

LTD

Overseas legal

person

4.49% 12700000 0

Pledged 0

Frozen 0

Changjiang

Securities

Brokerage

(Hongkong) Co.Ltd.Overseas legal

person

1.89% 5355249 0

Pledged 0

Frozen 0

Guoyuan

Securities

Brokerage (Hong

Kong) Limited

Overseas legal

person

1.37% 3870117 0

Pledged 0

Frozen 0

LI SHERYN

ZHAN MING

Overseas legal

person

0.39% 1092000 0

Pledged 0

Frozen 0

Li Senzhuang

Domestic nature

person

0.36% 1022260 0

Pledged 0

Frozen 0

Han Yaming

Domestic nature

person

0.31% 864200 0

Pledged 0

Frozen 0

Zhong Jiachao

Domestic nature

person

0.30% 857994 0

Pledged 0

Frozen 0

BINGHU LIU

Overseas nature

person

0.30% 840313 0

Pledged 0

Frozen 0

Top ten shareholders with unrestricted shares held

Shareholder’s name Amount of unrestricted shares held

Type of shares

Type Amount

Wuhan Zhongheng Group 118044194

RMB common

118044194

SEG (HONG KONG) CO. LTD. 16569560

Domestically

listed foreign

16569560

GOOD HOPE CORNER

INVESTMENTS LTD

12700000

Domestically

listed foreign

12700000

Changjiang Securities Brokerage

(Hongkong) Co. Ltd.

5355249

Domestically

listed foreign

5355249

Guoyuan Securities Brokerage

(Hong Kong) Limited

3870117

Domestically

listed foreign

3870117

LI SHERYN ZHAN MING 1092000

Domestically

listed foreign

1092000

Li Senzhuang 1022260

Domestically

listed foreign

1022260

Han Yaming 864200 Domestically 864200

listed foreign

# Zhong Jiachao 857994

RMB common

857994

BINGHU LIU 840313

Domestically

listed foreign

840313

Explanation on associated

relationship among the aforesaid

shareholders

Among the top ten shareholders Wuhan Zhongheng New Science & Technology Industrial

Group Co. Ltd. neither bears associated relationship with other shareholders nor belongs to

the consistent actor that are prescribed in Measures for the Administration of Disclosure of

Shareholder Equity Changes of Listed Companies. The Company neither knew whether there

exists associated relationship among the other tradable shareholders nor they belong to

consistent actors that are prescribed in Measures for the Administration of Disclosure of

Shareholder Equity Changes of Listed Companies.

Explanation on top 10 common

shareholders involving margin

business (if applicable)

Among the top ten shareholder Zhong Jiachao holds 857994 shares of the Company

including 369000 shares holding through credit account a 43 percent takes in total shares of

the company holding

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement

dealing in reporting period

□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back

agreement dealing in reporting period.

2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred

stock held

□ Applicable √ Not applicable

Section III. Significant Events

I. Particulars about material changes in items of main accounting statement and financial

index and explanations of reasons

√Applicable □Not applicable

Item 2019-3-31 2018-1-1 Y-o-y changes Reasons of changes

Account paid in

advance 11506518.47 31348429.54 -63.29%

Part of account paid in advance for

material at end of last year

Other receivables 7731577.17 5777179.08 33.83%

Amount contact between the enterprises

increased

Account received in

advance

246190.47 159528.60 54.32%

Account of goods are received in advance

from small customers

Item Jan.-March of 2019 Jan.-March of 2018 Y-o-y changes Reasons of changes

Taxes and surcharges

628766.00 1117886.20 -43.75% Sales declined than the taxes decreased

Income from

investment

30941.58 110910.67 -72.10%

Bank financial purchased in the period

declined

Non-operation income

44300.00 512000.00 -91.35%

Received government grants at same

period last year

Non-operation

expenditure

4118.80 267736.37 -98.46%

Loss of assets disposal arising at same

period last year

Income tax expenses

84349.95 158156.45 -46.67% Sales declined than the taxes decreased

Item Jan.-March of 2019 Jan.-March of 2018 Y-o-y changes Reasons of changes

Taxes paid 2076195.55 7128845.32 -70.88% Sales declined than the taxes decreased

Cash received from

investment income

30941.58 110910.67 -72.10%

Bank financial purchased in the period

declined

Net cash received from

disposal of fixed

intangible and other

long-term assets

- 412682.00 -100.00% Production equipment renew last period

Cash paid for

purchasing fixed

intangible and other

long-term assets 1991100.36 3851816.62 -48.31%

Purchased new production equipment for

new workshop last period

Cash received from 39255469.21 131532341.95 -70.16% Short-term loans declined in the period

loans

Cash paid for settling

debts 51413400.63 131560722.31 -60.92%

Short-term loans repayment declined in

the period

Influence on cash and

cash equivalents due to

fluctuation in exchange

rate

65528.58 -200355.12 132.71% Impact of exchange rate fluctuations

II. Analysis and explanation of significant events and their influence and solutions

√ Applicable □Not applicable

(I) The Company signed Asset Exchange Contract with Wuhan Zhongheng Group on 29 April 2009 (details were referred to in the

announcement dated 30 April 2009) and pursuant to the contract since part of the assets of the Company (namely two parcel of

industrial lands located at Huafa road Gongming town Guangming new district Shenzhen (the property certificate No. were SFDZ

No.7226760 and SFDZ No.7226763 No. of parcels were A627-005 andA627-007 and the aggregate area was 48200 sq.m) were the

lands listed in the first batch of plan for 2010 Shenzhen urbanization unit planning preparation plan. For promotion of such

urbanization project and joint cooperation the Company has not completed the transfer procedures in respect of the aforesaid land.The Company convoked the first extraordinary meeting of the Board in 2015 on February 16 2015 and the first extraordinary generalmeeting of the Board in 2015 on March 4 2015 which considered and approved the “Motion on promoting and implementing theurban renewal project for the renewal units of Huafa area at Gongming street Guangming new district Shenzhen” specified that the

Company and Wuhan Zhongheng Group shall obtain the corresponding compensatory consideration for removal from the

respectively owned project plots and the respectively contributed and constructed above-ground buildings before the land

development it is estimated that the compensatory consideration obtained by the Company accounts for 50.5% of the total

consideration and Wuhan Zhongheng Group accounts for 49.5% by calculation.The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting held on September 11

2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewal and the progress ofrelated transactions of ‘the updated units at Huafa Area Gong Ming Street Guangming New District Shenzhen’” the company hassigned the “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area Gong Ming StreetGuangming New District Shenzhen” “Contract for the cooperative venture of reconstruction project for Huafa Industrial Park GongMing Street Guangming New District” and “Agreement on housing acquisition and removal compensation and resettlement” withWuhan Zhongheng New Technology Industry Group Co. Ltd. (hereinafter referred to as “Wuhan Zhongheng Group”) Shenzhen

Vanke Real Estate Co. Ltd. (hereinafter referred to as “Shenzhen Vanke”) and Shenzhen Vanke Guangming Real Estate

Development Co. Ltd. (hereinafter referred to as “Vanke Guangming”).

On 12 September 2016 the Company received a “Notice of Arbitration No.: SHEN DP20160334” from SCIA Shenzhen Vankeapplied for arbitration in respect of “Agreement on the cooperation of urban renewal project of the updated units at Huafa AreaGong Ming Street Guangming New District Shenzhen” against the Company and Wuhan Zhongheng Group. The arbitration court

holds hearings on 12 November 2016 and 13 May 2017. Shenzhen Court of International Arbitration (SCIA) has given a ruling in

August 2017. In February 2018 the company filed an application for repeal of arbitration to the Shenzhen Intermediate People’s

Court the Shenzhen Intermediate People’s Court made a judgment on August 16 2018 to reject the company’s claims. On August 29

2018 the court accepted the compulsory execution application of Shenzhen Vanke at present the controlling shareholders are

actively communicating with the relevant parties for the solution. Progress of the case found more in the Notices released on Juchao

website (www.cninfo.com.cn) dated 14 Sept. 2016 1 Nov. 2016 16 Nov. 2016 on 18 Feb. 2017 24 March 2017 25 April 2017 1

July 2017 18 August 2017 9 Feb. 2018 25 Aug. 2018 and 7 Sept. 2018 respectively.(ii) On 31 December 2015 the 88750047 shares held by Wuhan Zhongheng Group are pledge to China Merchants Securities

Assets Co. Ltd. with due date of 31 December 2016. Wuhan Zhongheng Group deferred the repurchase business day to 30 June 2017.

on 1 Feb. 2016 Wuhan Zhongheng Group pledge the 27349953 shares held to China Merchants Securities Assets Co. Ltd. with

due date of 31 December 2016. The above mentioned shares are deferred for repurchase of stock pledge by Wuhan Zhongheng

Group; pledge expired on 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till

end of this period released controlling shareholder still not removed the pledge and the Company has apply by letter relevant Notice

of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in notice released on Juchao website

(www.cninfo.com.cn) date 2 Feb. 2018.(iii) Our controlling shareholder Wuhan Zhongheng Group holds 116489894 shares of the Company accounting for 41.14% of total

share capital. The above shares were judicially sealed on 27 September 2016 shares freeze from 27 September 2016 to 13 September

2021; and on 14 December 2018 shares are waiting freeze by Shenzhen Intermediate’s Court with period of 36 months in freeze.

Details are set out in the announcement published at Juchao information website (www.cninfo.com.cn) on 27 October 2016 and 11

Jan. 2019.(iv) On March 21 2014 Huafa Property and Shenzhen Jifang Investment Co. Ltd. (hereinafter referred to as "Jifang Investment")

signed the "Shenzhen Housing Leasing Contract" and the "Supplemental Agreement on Leasing Contract" which were canceled on

February 5 2016. As Jifang Investment occupied the site and defaulted rent management fee and water and electricity bills in the

long term in order to safeguard the legitimate rights and interests Huafa Property submitted a request for arbitration to Shenzhen

Arbitration Commission on March 8 2016 and received the (2016) SZCZ No. 346 ruling paper from Shenzhen Arbitration

Commission in November 2016 which ruled Huafa Property won the lawsuit. See details on the notice published at

www.cninfo.com.cn by the company on November 8 2016. The site occupied by Jifang was collected in May 2018.(v) Commitments of Major shareholder to Increase Shareholding

On November 20 and November 28 2017 the controlling shareholders respectively made commitments to increase the shareholding

of 2.83 million shares of the company’s B Shares and no less than 2.8 million shares of the company’s A Shares with a commitment

period of 6 months. After that controlling shareholders apply for two deferrals. As of the disclosure date of this report it’s still in the

commitment fulfillment period and the commitment has not been fulfilled.(vi) Director and deputy chairman of the Company Mr. Zhang Guangliu resigned his job as director deputy chairman and member of

the committee of the Board of the Company for job mobility. Nominated by second largest shareholder SEG (HK) Co. Ltd Mr. Gao

Jianbo was elected as the director of 9th BOD of the Company with office same as the session of BOD.Summary of important issues Disclosure date Interim report disclosure index

Implementation progress of shares buy-back

□ Applicable √ Not applicable

Implementation progress of the reduction of repurchases shares by centralized bidding

□ Applicable √ Not applicable

III. Commitments completed in Period and those without completed till end of the Period

from actual controller shareholders related parties purchaser and companies

√Applicable □ Not applicable

Commitments Promise

Type of

commitments

Content of commitments

Commitment

date

Commitment

term

Implementation

Commitments

for share

reform

Wuhan

Zhongheng

Group

The enterprise and its subsidiaries will

not participate directly or indirectly in

operation of the business with

competitive of Shen Huafa and its

controlling subsidiary concerned and

not to damage the interest of the Shen

Huafa and its controlling subsidiary by

making use of the potential

controlling-ship of the Shen Huafa

either

2007-03-29

Implement

since 12 April

2007

throughout

the year

In normal

implementing

Wuhan

Zhongheng

Group

The enterprise and its subordinate

enterprise shall avoid a related

transaction as far as possible with Shen

Huafa and its controlling subsidiary as

for the related dealings occurred

inevitable or have reasonable cause the

enterprise promise to follow the

principle of fair-ness justice and

open-ness signed the agreement in line

with the laws perform legal program

fulfill information disclosure obligation

and relevant approval procedures

according to the relevant laws

regulations and “Listing Rules” of the

Shenzhen Stock Exchange guarantee

not to damage the legal interest of Shen

Huafa and its shareholders through

related transactions

2007-03-29

Implement

since 12 April

2007

throughout

the year

In normal

implementing

Wuhan

Zhongheng

Group

After acquisition and assets

restructuring guarantee to have an

independent staff owns independent

and completed assets and independent

in aspect of business financial and

institution from Shen Huafa

2007-03-29

Implement

since 12 April

2007

throughout

the year

In normal

implementing

Commitments

in report of

acquisition or

equity change

Commitments

in assets

reorganization

Commitments

make in initial

public offering

or re-financing

Equity

incentive

commitment

Other

commitments

for medium

and small

shareholders

Wuhan

Zhongheng

Group

Regarding the lawsuit with Shenzhen

Vanke: 1. If the arbitration judges

Shenzhen Vanke to win the arbitration

losses caused by the contract disputes

shall be undertaken by Wuhan

Zhongheng Group in full; 2. The

contingent losses and risks arising from

the termination of relevant contracts

shall be undertaken by Wuhan

Zhongheng Group in advance.

2016-12-20

Implemented

since 20

December

2016

In normal

implementing

Wuhan

Zhongheng

Group

Promise to increasing shares of holding

as 2.83 million shares of B-stock of the

Company in 6 months since the letter

delivery

2017-11-20

In 6 months

since the date

of notification

Ended as the

reporting

period the

promises

during

performance

period has not

been

implemented

yet

Wuhan

Zhongheng

Group

Promise to increasing shares of holding

as 2.8 million shares of A-stock at least

in 6 months since the letter delivery

2017-11-28

n 6 months

since the date

of notification

Ended as the

reporting

period the

promises

during

performance

period and

part of the

commitment

implemented

Completed on Yes

time (Y/N)

If the

commitments

is not fulfilled

on time shall

explain the

specify reason

and the next

work plan

Not applicable

IV. Predict of the business performance from January to June 2019

Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be

loss or have great changes comparing with the same period of last year

□Applicable √Not applicable

V. Securities Investment

□ Applicable √ Not applicable

No security investment in the Period.VI. Derivative investment

□ Applicable √ Not applicable

No derivative investment in the Period.VII. Registration form for receiving research communication and interview in the report

period

√Applicable □ Not applicable

Date Method Type of investors Basic situation index of investigation

2019-01-03 Telephone communication Individual N/A

VIII. Guarantee outside against the regulation

□Applicable √Not applicable

The Company has no external security against the rules in the Period.IX. Non-operational fund occupation from controlling shareholders and its related party

□ Applicable √ Not applicable

There are no controlling shareholders' and its related party's non-business capital occupying of the listed company.

Section IV. Financial Statement

I. Financial statement

1. Consolidate balance sheet

Prepared by Shenzhen Zhongheng Huafa Co. Ltd.

2019-03-31

In RMB

Items 2019-3-31 2018-12-31

Current assets:

Monetary fund 36204765.03 34108330.27

Settlement provisions

Capital lent

Transactional financial assets

Financial assets measured by fair

value and with variation reckoned into

current gains/losses

Derivative financial assets

Note receivable and account

receivable

155349020.71 185983351.22

Including: Notes receivable 27134521.33 69185516.71

Accounts receivable 128214499.38 116797834.51

Account paid in advance 11506518.47 31348429.54

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 7731577.17 5777179.08

Including: Interest receivable

Dividends receivable

Buying back the sale of financial

assets

Inventories 70786993.64 62973909.38

Contractual assets

Assets held for sale

Non-current assets maturing within

one year

Other current assets 42314.10 59370.18

Total current assets 281621189.12 320250569.67

Non-current assets:

Loans and payments on behalf

Debt investment

Available-for-sale financial assets

Other debt investment

Held-to-maturity investments

Long-term receivables

Long-term equity investments

Investment in other equity

instrument

Other non-current financial assets

Investment real estate 50249240.29 50681322.86

Fixed assets 186259240.27 188083873.38

Construction in progress 6875558.57 5727760.23

Productive biological assets

Oil and natural gas assets

Right-of-use assets

Intangible assets 44427614.19 41815689.74

Research and development costs

Goodwill

Long-term deferred expenses 484033.03 542116.99

Deferred income tax assets 6829856.59 6829856.59

Other non-current assets 2874654.00 3158964.00

Total non-current assets 298000196.94 296839583.79

Total assets 579621386.06 617090153.46

Current liabilities

Short-term borrowings 136622458.00 161568657.88

Loan from central bank

Capital borrowed

Transactional financial liability

Financial liability measured by fair

value and with variation reckoned into

current gains/losses

Derivative financial liability

Notes payable & account payable 72847888.26 88617663.09

Accounts received in advance 246190.47 159528.60

Selling financial asset of repurchase

Absorbing deposit and interbank

deposits

Agent buying and selling securities

Acting underwriting securities

Wage payable 2735590.88 4700208.36

Taxes payable 9489303.40 11232819.87

Other accounts payable 33389309.33 26778863.92

Including: Interest payable 163673.05 439558.70

Dividend payable

Handling fees and commissions

payable

Reinsurance payable

Contractual liability

Liability held for sale

Non-current liabilities due within

one year

Other current liabilities

Total current liabilities 255330740.34 293057741.72

Non-current liabilities:

Insurance contract reserve

Long-term loans

Bonds payable

Including: preferred stock

Perpetual capital

securities

Lease liability

Long-term account payable

Long term employee compensation

payable

Accrued liabilities 64411.00 64411.00

Deferred income

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 64411.00 64411.00

Total liabilities 255395151.34 293122152.72

Owners’ equity:

Share capital 283161227.00 283161227.00

Other equity instrument

Including: preferred stock

Perpetual capital

securities

Capital public reserve 146587271.50 146587271.50

Less: Inventory shares

Other comprehensive income

Special reserve

Surplus reserve 77391593.25 77391593.25

Provision of general risk

Retained profit -182913857.03 -183172091.01

Total owner’s equity attributable to

parent Company

324226234.72 323968000.74

Minority interests

Total owner’s equity 324226234.72 323968000.74

Total liabilities and owner’s equity 579621386.06 617090153.46

Legal Representative: Li Zhongqiu

Person in charge of accounting works: Yang Bin

Person in charge of accounting institute: Wu Aijie

2. Balance Sheet of Parent Company

In RMB

Items 2019-3-31 2018-12-31

Current assets:

Monetary fund 5239905.52 25181764.87

Transactional financial assets

Financial assets measured by fair

value and with variation reckoned into

current gains/losses

Derivative financial assets

Note receivable and account

receivable

Including: Notes receivable

Accounts receivable

Account paid in advance 353050.00

Other account receivable 105431467.95 99922143.84

Including: Interest receivable

Dividends receivable

Inventories 14806.50 14806.50

Contractual assets

Assets held for sale

Non-current assets maturing within

one year

Other current assets

Total current assets 111039229.97 125118715.21

Non-current assets:

Debt investment

Available-for-sale financial assets

Other debt investment

Held-to-maturity investments

Long-term receivables

Long-term equity investments 186608900.00 186608900.00

Investment in other equity

instrument

Other non-current financial assets

Investment real estate 26072603.04 27583299.22

Fixed assets 98945724.53 99678839.27

Construction in progress 654356.00

Productive biological assets

Oil and natural gas assets

Right-of-use assets

Intangible assets 4662418.53 4843600.68

Research and development costs

Goodwill

Long-term deferred expenses 141666.55

Deferred income tax assets 7506905.90 7519546.71

Other non-current assets

Total non-current assets 323796552.00 327030208.43

Total assets 434835781.97 452148923.64

Current liabilities

Short-term borrowings 100000000.00 120000000.00

Transactional financial liability

Financial liability measured by fair

value and with variation reckoned into

current gains/losses

Derivative financial liability

Notes payable & account payable 9740367.33 10745840.16

Accounts received in advance 133844.50 67210.00

Contractual liability

Wage payable 820979.02 1039196.20

Taxes payable 7260647.12 9305468.70

Other accounts payable 21424953.87 14339551.78

Including: Interest payable

Dividend payable

Liability held for sale

Non-current liabilities due within

one year

Other current liabilities

Total current liabilities 139380791.84 155497266.84

Non-current liabilities:

Long-term loans

Bonds payable

Including: preferred stock

Perpetual capital

securities

Lease liability

Long-term account payable

Long term employee compensation

payable

Accrued liabilities 64411.00 64411.00

Deferred income

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 64411.00 64411.00

Total liabilities 139445202.84 155561677.84

Owners’ equity:

Share capital 283161227.00 283161227.00

Other equity instrument

Including: preferred stock

Perpetual capital

securities

Capital public reserve 146587271.50 146587271.50

Less: Inventory shares

Other comprehensive income

Special reserve

Surplus reserve 77391593.25 77391593.25

Retained profit -211749512.62 -210552845.95

Total owner’s equity 295390579.13 296587245.80

Total liabilities and owner’s equity 434835781.97 452148923.64

3. Consolidated Profit Statement

In RMB

Items Current Period Last Period

I. Total operating income 143921648.63 171620013.62

Including: Operating income 143921648.63 171620013.62

Interest income

Insurance gained

Handling fees and commissions

income

II. Total operating cost 143650187.48 171509663.58

Including: Operating cost 123972772.66 152728695.85

Interest expense

Handling fees and commissions

expenses

Cash surrender value

Net amount of expense of

compensation

Net amount of withdrawal of

insurance contract reserve

Bonus expense of guarantee slip

Reinsurance expense

Taxes and surcharge 628766.00 1117886.20

Sales expenses 3231596.06 3844118.14

Administration expenses 11971872.78 9464851.87

R&D expenses

Financial expenses 3845179.98 4354111.52

Including: interest expenses 2793872.51 3116070.83

Interest income 95661.57 205102.82

Losses of devaluation of asset

Loss of credit impairment

Add: other income

Investment income (Loss is listed

with “-”)

30941.58 110910.67

Including: Investment income on

affiliated Company and joint venture

Exchange income (Loss is listed

with “-”)

Net exposure hedging income (Loss

is listed with “-”)

Changing income of fair value(Loss

is listed with “-”)

Income on disposal of assets (Loss is

listed with “-”)

III. Operating profit (Loss is listed with “-”) 302402.73 221260.71

Add: Non-operating income 44300.00 512000.00

Less: Non-operating expense 4118.80 267736.37

IV. Total Profit (Loss is listed with “-”) 342583.93 465524.34

Less: Income tax 84349.95 158156.45

V. Net profit (Net loss is listed with “-”) 258233.98 307367.89

(i) Classify by business continuity

1.continuous operating net profit (net losslisted with ‘-”)

258233.98 307367.89

2.termination of net profit (net loss listedwith ‘-”)

(ii) Classify by ownership

1.Net profit attributable to owner’s of

parent company

258233.98 307367.89

2.Minority shareholders’ gains and losses

VI. 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

.gain/loss of fair value changes

for available-for-sale financial assets

4.Amount of financial assets

re-classify to other comprehensive income

5.Gain/loss of held-to-maturity

investments that re-classify to

available-for-sale financial asset

6.Credit impairment provision for

other debt investment

7.Cash flow hedging reserve

8.Translation differences arising

on translation of foreign currency financial

statements

9.Other

Net after-tax of other comprehensive

income attributable to minority shareholders

VII. Total comprehensive income 258233.98 307367.89

Total comprehensive income

attributable to owners of parent Company

258233.98 307367.89

Total comprehensive income attributable

to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.0009 0.0011

(ii) Diluted earnings per share 0.0009 0.0011

Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and

realized 0 Yuan at last period for combined party

Legal Representative: Li Zhongqiu

Person in charge of accounting works: Yang Bin

Person in charge of accounting institute: Wu Aijie

4. Profit Statement of Parent Company

In RMB

Items Current Period Last Period

I. Operating income 8410710.54 9695927.93

Less: Operating cost 1229845.47 1069611.54

Taxes and surcharge 235479.42 608353.57

Sales expenses

Administration expenses 4650071.72 5038857.70

R&D expenses

Financial expenses 2191390.21 2469805.69

Including: interest

expenses

2174999.98 2479875.02

Interest income 6534.22 16259.97

Losses of devaluation of

asset

Loss of credit impairment

Add: other income

Investment income (Loss is

listed with “-”)

Including: Investment

income on affiliated Company and

joint venture

Net exposure hedging

income (Loss is listed with “-”)

Changing income of fair

value(Loss is listed with “-”)

Income on disposal of

assets (Loss is listed with “-”)

II. Operating profit (Loss is listed

with “-”)

103923.72 509299.43

Add: Non-operating income 37300.00

Less: Non-operating expense

III. Total Profit (Loss is listed with

“-”)

141223.72 509299.43

Less: Income tax 35305.93 127324.86

IV. Net profit (Net loss is listed with

“-”)

105917.79 381974.57

(i)continuous operating netprofit (net loss listed with ‘-”)

105917.79 381974.57

(ii) termination of net profit (netloss listed with ‘-”)

V. Net after-tax of other

comprehensive income

(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.gain/loss of fair value

changes for available-for-sale

financial assets

4.Amount of financial

assets re-classify to other

comprehensive income

5.Gain/loss of

held-to-maturity investments that

re-classify to available-for-sale

financial asset

6.Credit impairment

provision for other debt investment

7.Cash flow hedging

reserve

8.Translation differences

arising on translation of foreign

currency financial statements

.Other

VI. Total comprehensive income 105917.79 381974.57

VII. Earnings per share:

(i) Basic earnings per share 0.0004 0.0013

(ii) Diluted earnings per share 0.0004 0.0013

5. Consolidated Cash Flow Statement

In RMB

Items Current Period Last Period

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor

services

131395643.63 129571099.86

Net increase of customer

deposit and interbank deposit

Net increase of loan from

central bank

Net increase of capital

borrowed from other financial

institution

Cash received from original

insurance contract fee

Net cash received from

reinsurance business

Net increase of insured savings

and investment

Net increase of amount from

disposal financial assets that

measured by fair value and with

variation reckoned into current

gains/losses

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

Other cash received concerning

operating activities

1243646.01 1231864.14

Subtotal of cash inflow arising from

operating activities

132639289.64 130802964.00

Cash paid for purchasing

commodities and receiving labor

service

85022628.29 96423780.37

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 financial assets

held for transaction purposes

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

16234429.46 18269550.80

Taxes paid 2076195.55 7128845.32

Other cash paid concerning

operating activities

9902133.35 8642968.09

Subtotal of cash outflow arising from

operating activities

113235386.65 130465144.58

Net cash flows arising from

operating activities

19403902.99 337819.42

II. Cash flows arising from investing

activities:

Cash received from recovering

investment

Cash received from investment

income

30941.58 110910.67

Net cash received from disposal

of fixed intangible and other

long-term assets

412682.00

Net cash received from disposal

of subsidiaries and other units

Other cash received concerning

investing activities

46000000.00 42000000.00

Subtotal of cash inflow from

investing activities

46030941.58 42523592.67

Cash paid for purchasing fixed

intangible and other long-term assets

1991100.36 3851816.62

Cash paid for investment

Net increase of mortgaged loans

Net cash received from

subsidiaries and other units obtained

Other cash paid concerning

investing activities

46000000.00 42000000.00

Subtotal of cash outflow from

investing activities

47991100.36 45851816.62

Net cash flows arising from investing

activities

-1960158.78 -3328223.95

III. Cash flows arising from

financing activities

Cash received from absorbing

investment

Including: Cash received from

absorbing minority shareholders’

investment by subsidiaries

Cash received from loans 39255469.21 131532341.95

Cash received from issuing

bonds

Other cash received concerning

financing activities

Subtotal of cash inflow from

financing activities

39255469.21 131532341.95

Cash paid for settling debts 51413400.63 131560722.31

Cash paid for dividend and

profit distributing or interest paying

3134606.87 2860474.39

Including: Dividend and profit

of minority shareholder paid by

subsidiaries

Other cash paid concerning

financing activities

Subtotal of cash outflow from

financing activities

54548007.50 134421196.70

Net cash flows arising from

financing activities

-15292538.29 -2888854.75

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

65528.58 -200355.12

V. Net increase of cash and cash

equivalents

2216734.50 -6079614.40

Add: Balance of cash and cash

equivalents at the period -begin

27961209.60 81474974.30

VI. Balance of cash and cash

equivalents at the period -end

30177944.10 75395359.90

6. Cash Flow Statement of Parent Company

In RMB

Items Current Period Last Period

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor

services

8916021.40 5470760.50

Write-back of tax received

Other cash received concerning

operating activities

2102534.22 100278749.63

Subtotal of cash inflow arising from

operating activities

11018555.62 105749510.13

Cash paid for purchasing

commodities and receiving labor

service

Cash paid to/for staff and

workers

841317.45 899173.60

Taxes paid 458295.30 1637395.79

Other cash paid concerning

operating activities

15538788.71 110421369.31

Subtotal of cash outflow arising from

operating activities

16838401.46 112957938.70

Net cash flows arising from

operating activities

-5819845.84 -7208428.57

II. Cash flows arising from investing

activities:

Cash received from recovering

investment

Cash received from investment

income

Net cash received from disposal

of fixed intangible and other

long-term assets

Net cash received from disposal

of subsidiaries and other units

Other cash received concerning

investing activities

Subtotal of cash inflow from

investing activities

Cash paid for purchasing fixed

intangible and other long-term assets

1036800.00

Cash paid for investment

Net cash received from

subsidiaries and other units obtained

Other cash paid concerning

investing activities

Subtotal of cash outflow from

investing activities

1036800.00

Net cash flows arising from investing

activities

-1036800.00

III. Cash flows arising from

financing activities

Cash received from absorbing

investment

Cash received from loans 100000000.00

Cash received from issuing

bonds

Other cash received concerning

financing activities

Subtotal of cash inflow from

financing activities

100000000.00

Cash paid for settling debts 100199862.50

Cash paid for dividend and

profit distributing or interest paying

2174999.98 2315212.52

Other cash paid concerning

financing activities

Subtotal of cash outflow from

financing activities

2174999.98 102515075.02

Net cash flows arising from

financing activities

-2174999.98 -2515075.02

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

-23.63 -166.89

V. Net increase of cash and cash

equivalents

-7994869.45 -10760470.48

Add: Balance of cash and cash

equivalents at the period -begin

12024179.58 25181764.87

VI. Balance of cash and cash

equivalents at the period -end

4029310.13 14421294.39

II. Explanation on financial statement adjustment

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

instrument rules new revenue rules and new leasing rules

□Applicable √Not applicable

2. Retrospective adjustment of the comparative data for initial implementation of new financial instrument

行情