深华发Ｂ：2020年第一季度报告全文（英文版）

Shenzhen Zhongheng Huafa Co. Ltd.First Quarterly Report 2020

April 2020

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) 87800584.55 143921648.63 -38.99%

Net profit attributable to shareholders of

the listed company (RMB)

-400741.17 258233.98 -255.19%

Net profit attributable to shareholders of

the listed company after deducting

non-recurring gains and losses (RMB)

-208179.52 196868.38 -205.75%

Net cash flow arising from operating

activities (RMB)

7931308.59 19403902.99 -59.13%

Basic earnings per share (RMB/Share) -0.0014 0.0009 -255.56%

Diluted earnings per share (RMB/Share) -0.0014 0.0009 -255.56%

Weighted average ROE -0.12% 0.08% -0.20%

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) 620319821.75 614163899.86 1.00%

Net assets attributable to shareholder of

listed company (RMB)

329027308.72 329428049.89 -0.12%

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)

-253414.02

Gain or loss on the investment or management of assets 37415.02

Other non-operating income and expenditure except for the

aforementioned items

-10052.54

Less: impact on income tax -33489.89

Total -192561.65 --

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

24131

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

42.13% 119289894 0

Pledged 116100000

Frozen 119289894

SEG (HONG

KONG) CO.

LTD.

Overseas legal

person

5.85% 16569560 0

Pledged 0

Frozen 0

GOOD HOPE

CORNER

INVESTMENTS

LTD

Overseas legal

person

3.40% 9722000 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

1.36% 3870117 0

Pledged 0

Frozen 0

Li Zhongqiu

Overseas legal

person

1.00% 2830000 0

Pledged 0

Frozen 0

Zhong Jiachao

Domestic nature

person

0.47% 1329602 0

Pledged 0

Frozen 0

LI SHERYN

ZHAN MING

Overseas legal

person

0.36% 1002800 0

Pledged 0

Frozen 0

Li Senzhuang

Domestic nature

person

0.35% 989350 0

Pledged 0

Frozen 0

Han Yaming

Domestic nature

person

0.31% 864200 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 119289894

RMB common

119289894

SEG (HONG KONG) CO. LTD. 16569560

Domestically

listed foreign

16569560

GOOD HOPE CORNER

INVESTMENTS LTD

9722000

Domestically

listed foreign

9722000

Changjiang Securities Brokerage

(Hongkong) Co. Ltd.

5355249

Domestically

listed foreign

5355249

Guoyuan Securities Brokerage

(Hong Kong) Limited

3870117

Domestically

listed foreign

3870117

Li Zhongqiu 2830000

Domestically

listed foreign

2830000

Zhong Jiachao 1329602

Domestically

listed foreign

1329602

LI SHERYN ZHAN MING 1002800

Domestically

listed foreign

1002800

Li Senzhuang 989350

Domestically

listed foreign

989350

Han Yaming 864200

Domestically

listed foreign

864200

Explanation on associated

relationship among the aforesaid

shareholders

Among the top ten shareholders Li Zhongqiu is the actual controller of Wuhan Zhongheng

New Science & Technology Industrial Group Co. Ltd. and is a party acting in concert.The Company neither knew whether there exists associated relationship among the other

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 shareholders Zhong Jiachao held 795602 shares through ordinary

accounts 534000 shares through credit securities accounts and total held 1329602 shares.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 2020-3-31 2020-1-1 Y-o-y changes Reasons of changes

Money funds

32816423.29

38095501.00

-13.86%

Accounts receivable

124682499.69

138755691.43

-10.14%

Receivable financing

55390096.43

42096834.02

31.58% Note receivable increased in the period

Prepayments

34827689.44

23007637.46

51.37% Account paid in advance for materials

increased in the period

Other receivables

11576982.05

6351361.16

82.28% Some of the merchant rents are collected

in April

Stock

67463821.48

66971551.96

0.74%

Other current assets

233390.96

1395071.36

-83.27% Tax to be deducted is deducted in the

period

Short-term loan

12822324.40

24633898.20

-47.95% Short-term loans declined

Bills payable

11570559.44

16761590.51

-30.97% Notes issued in the period declined

Accounts payable

127811428.65

108804905.20

17.47%

Advance payment

1985305.99

356446.21

456.97%Received part of the deposit in advance

Staff payable

6138190.12

5877341.25

4.44%

Taxes payable

12124249.09

12877944.98

-5.85%

Item Jan.-March of 2020 Jan.-March of 2019 Y-o-y changes Reasons of changes

Operating income

87800584.55

143921648.63

-38.99% Factory shut down and orders fell due to

the impact of epidemic

Operating cost

73672446.25

123972772.66

-40.57% Factory shut down and orders fell due to

the impact of epidemic

Taxes and surcharges -7.00%

584743.27 628766.00

Sales expense

3448537.85

3231596.06

6.71%

Management fees

8058091.66

11971872.78

-32.69% Factory shut down due to the impact of

epidemic

Financial expenses

1458095.53

3845179.98

-62.08% Bank loans declined

Non-operation income

5492.44

44300.00

-87.60% There was a penalty income in previous

period

Non-operation expenditure

263835.56

4118.80

6305.64% Loss of fixed assets disposal in the period

Income tax expenses

-85032.71

84349.95

-200.81% Loss in the period

Item Jan.-March of 2020 Jan.-March of 2019 Y-o-y changes Reasons of changes

Cash received from sales of goods

and services

86584529.58

131395643.63

-34.10% Factory shut down and orders fell due to

the impact of epidemic

Cash for purchasing goods and

receiving labor services

56760923.41

85022628.29

-33.24% Factory shut down and orders fell due to

the impact of epidemic

Cash paid to and for employees

8467600.61

16234429.46

-47.84% Factory shut down due to the impact of

epidemic

Cash paid for purchasing fixed

intangible and other long-term assets

467211.58

1991100.36

-76.54% Factory shut down due to the impact of

epidemic

Other cash paid relating to

investing activities

25000000.00

46000000.00

-45.65% Bank financial products purchased in the

period declined

Cash received from loans

6725056.80

39255469.21

-82.87% Short-term loans declined in the period

Cash paid for settling debts

20548487.80

51413400.63

-60.03% Bank loans paid in the period declined

Influence on cash and cash equivalents

due to fluctuation in exchange rate

32336.78

65528.58

-50.65%Exchange rate movements have less

impact in the period

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 general meeting of the Board in 2015 on March 4 2015 which considered and approved the“Motion on promoting and implementing the urban renewal project for the renewal units of Huafa area atGongming 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 heldon September 11 2015 have considered and adopted the “Proposal on the project promotion and implementationof urban renewal and the progress of related transactions of ‘the updated units at Huafa Area Gong Ming StreetGuangming New District Shenzhen’” the company has signed the “Agreement on the cooperation of urbanrenewal project of the updated units at Huafa Area Gong Ming Street Guangming New District Shenzhen”

“Contract for the cooperative venture of reconstruction project for Huafa Industrial Park Gong Ming StreetGuangming New District” and “Agreement on housing acquisition and removal compensation and resettlement”with Wuhan Zhongheng New Technology Industry Group Co. Ltd. (hereinafter referred to as “WuhanZhongheng Group”) Shenzhen Vanke Real Estate Co. Ltd. (hereinafter referred to as “Shenzhen Vanke”) andShenzhen Vanke Guangming Real Estate Development Co. Ltd. (hereinafter referred to as “Vanke Guangming”).

On 12 September 2016 Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation ofurban renewal project of the updated units at Huafa Area Gong Ming Street Guangming New District Shenzhen”

against the Company and Wuhan Zhongheng Group. Shenzhen Court of International Arbitration (SCIA) has

given a ruling in August 2017. On August 29 2018 the court accepted the compulsory execution application of

Shenzhen Vanke. In October 2019 as a number of outsiders filed an “execution objection” and applied for “noexecution” to Shenzhen Intermediate People’s Court the Shenzhen Intermediate People’s Court ruled to terminate

the enforcement procedure on March 20 2020. If the “execution objection” and “no execution” proposed by

outsiders are rejected according to law Shenzhen Vanke may continue to apply to the Shenzhen Intermediate

People’s Court to resume execution. 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.

In November 2019 the company was listed by Shenzhen Intermediate People’s Court as the dishonest person

subjected to execution and was removed from the dishonest person subjected to execution list by the ShenzhenIntermediate People’s Court in December 2019. For details see the “Announcement About the Company BeingIncluded in the List of Dishonest Person Subjected to Execution” (Announcement No.: 2019-33) and

“Announcement About the Company Being Removed from the List of Dishonest Person Subjected to Execution”

(Announcement No.: 2019 -35) issued by the company on November 9 2019 and December 14 2019 on

www.cninfo.com.cn.(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

pledged shares are deferred 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) The controlling shareholder Wuhan Zhongheng Group holds 119289894 shares of the Company’ stock

accounting for 42.13% of the total share capital of the Company of which 116489894 shares were judicially frozen

by Shenzhen Intermediate People's Court (hereinafter referred to as "Shenzhen Intermediate Court") on September

27 2016 which were frozen again by the Shenzhen Intermediate People's Court on December 14 2018 with a

frozen period of 36 months; the remaining 2800000 shares were frozen by the Shenzhen Intermediate People's

Court on May 29 2019 and were frozen again by the Higher People’s Court of Guangdong Province on July 5

2019. For details please refer to the company’s announcements published on www.cninfo.com.cn on October 27

2016 January 11 2019 May 31 2019 and August 7 2019.

(iv) On September 29 2016 the company and its controlling shareholder Wuhan Zhongheng Group signed the

“Agency Contract” with V&T Law Firm. On October 8 2016 the three parties also signed the “Supplemental

Agreement for Agency Contract” it was agreed that V&T acted as an agent for the company and Wuhan

Zhongheng Group to deal with the arbitration case with Shenzhen Vanke. After losing the lawsuit due to

differences in the payment of attorney fees V&T sued our company and Wuhan Zhongheng Group to the

Shenzhen Court of International Arbitration and applied to the court to seize a bank account under our company’sname and part of our company dormitories please refer to “Other Announcements on the Progress InvolvingLitigation and Arbitration” (Announcement Numbers: 2018-43 2019-02) released by our company on

www.cninfo.com on November 14 2018 and March 6 2019. 02. In November 2019 the Shenzhen Court of

International Arbitration ruled that the company and Wuhan Zhongheng Group paid the corresponding fees.

According to the “Agency Contract” and “Supplemental Agreement for Agency Contract” signed by the three

parties the loss of the arbitrament in this case was borne by Wuhan Zhongheng Group so it had no impact on thecompany’s 2019 annual profit. For details see the company’s “Other Announcements on the Progress InvolvingLitigation and Arbitration” (Announcement No.: 2019-34) released on www.cninfo.com.cn on November 25

2019.

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

The Company has no commitments completed in Period and those without completed till end of the Period from actual controller

shareholders related parties purchaser and companies.IV. Securities Investment

□ Applicable √ Not applicable

No security investment in Period.V. Trust financing

√Applicable □Not applicable

In 10 thousand Yuan

Type Capital sources Amount occurred Outstanding balance Overdue amount

Bank financial

products

Own funds 25000000 0 0

Total 25000000 0 0

Details of the single major amount or high-risk trust investment with low security poor fluidity and non-guaranteed

□Applicable √Not applicable

Entrust financial expected to be unable to recover the principal or impairment might be occurred

□ Applicable √ Not applicable

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

2020-01-06 Telephone communication Individual

Understand the company's production

and operation situation litigation

progress and the progress of urban

renewal projects

VIII. External security against the rules

□ Applicable √ Not applicable

The Company has no external security against the rules in the Period.IX. Controlling shareholders' and its related party's non-business capital occupying of the

listed company

□ 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.

2020-04-28

In RMB

Items 2020-3-31 2019-12-31

Current assets:

Monetary fund 32816423.29 38095501.00

Settlement provisions

Capital lent

Transactional financial assets

Derivative financial assets

Note receivable

Account receivable 124682499.69 138755691.43

Receivable financing 55390096.43 42096834.02

Accounts paid in advance 34827689.44 23007637.46

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 11576982.05 6351361.16

Including: Interest receivable

Dividend receivable

Buying back the sale of financial

assets

Inventories 67463821.48 66971551.96

Contractual assets

Assets held for sale

Non-current asset due within one

year

Other current assets 233390.96 1395071.36

Total current assets 326990903.34 316673648.39

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 48520910.00 48952992.57

Fixed assets 194674121.29 198229817.31

Construction in progress

Productive biological asset

Oil and gas asset

Right-of-use assets

Intangible assets 42518738.49 42968600.44

Expense on Research and

Development

Goodwill

Long-term expenses to be

apportioned

251697.19 309781.15

Deferred income tax asset 7137751.44 6803360.00

Other non-current asset 225700.00 225700.00

Total non-current asset 293328918.41 297490251.47

Total assets 620319821.75 614163899.86

Current liabilities:

Short-term loans 12822324.40 24633898.20

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 11570559.44 16761590.51

Account payable 127811428.65 108804905.20

Accounts received in advance 1985305.99 356446.21

Contractual liability

Selling financial asset of

repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

Security sales of agency

Wage payable 6138190.12 5877341.25

Taxes payable 12124249.09 12877944.98

Other account payable 33509094.34 28027592.62

Including: Interest payable 71131.46 89365.28

Dividend payable

Commission charge and

commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due

within one year

12000000.00 12000000.00

Other current liabilities

Total current liabilities 217961152.03 209339718.97

Non-current liabilities:

Insurance contract reserve

Long-term loans 71000000.00 73000000.00

Bonds payable

Including: Preferred stock

Perpetual capital

securities

Lease liability

Long-term account payable

Long-term wages payable

Accrual liability 64411.00 64411.00

Deferred income 2266950.00 2331720.00

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 73331361.00 75396131.00

Total liabilities 291292513.03 284735849.97

Owner’s 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

Reasonable reserve

Surplus public reserve 77391593.25 77391593.25

Provision of general risk

Retained profit -178112783.03 -177712041.86

Total owner’ s equity attributable to

parent company

329027308.72 329428049.89

Minority interests

Total owner’ s equity 329027308.72 329428049.89

Total liabilities and owner’ s equity 620319821.75 614163899.86

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

Item 2020-3-31 2019-12-31

Current assets:

Monetary funds 4283316.44 3494245.90

Trading financial assets

Derivative financial assets

Note receivable

Account receivable

Receivable financing

Accounts paid in advance 35123.00

Other account receivable 94530302.52 97165023.85

Including: Interest receivable

Dividend

receivable

Inventories 14806.50 14806.50

Contractual assets

Assets held for sale

Non-current assets maturing

within one year

Other current assets 29889.41 173950.26

Total current assets 98893437.87 100848026.51

Non-current assets:

Debt investment

Other debt investment

Long-term receivables

Long-term equity investments 186608900.00 186608900.00

Investment in other equity

instrument

Other non-current financial

assets

Investment real estate 24864200.40 25166301.06

Fixed assets 98141949.12 98410024.38

Construction in progress

Productive biological assets

Oil and natural gas assets

Right-of-use assets

Intangible assets 4517472.81 4553709.24

Research and development costs

Goodwill

Long-term deferred expenses

Deferred income tax assets 7367646.35 7367646.35

Other non-current assets

Total non-current assets 321500168.68 322106581.03

Total assets 420393606.55 422954607.54

Current liabilities

Short-term borrowings

Trading financial liability

Derivative financial liability

Notes payable

Account payable 9740367.33 10745840.16

Accounts received in advance 54451.01 57266.01

Contractual liability

Wage payable 820979.02 1220979.02

Taxes payable 7951572.26 8489130.72

Other accounts payable 19737144.53 19100375.42

Including: Interest payable

Dividend payable

Liability held for sale

Non-current liabilities due

within one year

12000000.00 12000000.00

Other current liabilities

Total current liabilities 50304514.15 51613591.33

Non-current liabilities:

Long-term loans 71000000.00 73000000.00

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 71064411.00 73064411.00

Total liabilities 121368925.15 124678002.33

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 -208115410.35 -208863486.54

Total owner’s equity 299024681.40 298276605.21

Total liabilities and owner’s equity 420393606.55 422954607.54

3. Consolidated Profit Statement

In RMB

Item Current period Last period

I. Total operating income 87800584.55 143921648.63

Including: Operating income 87800584.55 143921648.63

Interest income

Insurance gained

Commission charge and

commission income

II. Total operating cost 88130200.33 143650187.48

Including: Operating cost 73672446.25 123972772.66

Interest expense

Commission charge and

commission expense

Cash surrender value

Net amount of expense of

compensation

Net amount of withdrawal of insurance

contract reserve

Bonus expense of guarantee slip

Reinsurance expense

Tax and extras 584743.27 628766.00

Sales expense 3448537.85 3231596.06

Administrative expense 8058091.66 11971872.78

R&D expense 908285.77

Financial expense 1458095.53 3845179.98

Including: Interest

expenses

2375650.33 2793872.51

Interest

income

128721.93 95661.57

Add: other income 64770.00

Investment income (Loss is

listed with “-”)

37415.02 30941.58

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

(Loss is listed with “-”)

Losses of devaluation of

asset (Loss is listed with “-”)

Income from assets disposal

(Loss is listed with “-”)

III. Operating profit (Loss is listed with

“-”)

-227430.76 302402.73

Add: Non-operating income 5492.44 44300.00

Less: Non-operating expense 263835.56 4118.80

IV. Total profit (Loss is listed with “-”) -485773.88 342583.93

Less: Income tax expense -85032.71 84349.95

V. Net profit (Net loss is listed with

“-”)

-400741.17 258233.98

(i) Classify by business continuity

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

-400741.17 258233.98

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

(ii) Classify by ownership

1.Net profit attributable to

owner’s of parent company

-400741.17 258233.98

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

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 -400741.17 258233.98

Total comprehensive income

attributable to owners of parent

Company

-400741.17 258233.98

Total comprehensive income

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share -0.0014 0.0009

(ii) Diluted earnings per share -0.0014 0.0009

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

Item Current period Last period

I. Operating income 7437448.02 8410710.54

Less: Operating cost 613839.48 1229845.47

Taxes and surcharge 257246.31 235479.42

Sales expenses

Administration expenses 3553655.31 4650071.72

R&D expenses

Financial expenses 2015272.00 2191390.21

Including: interest

expenses

2015830.25 2174999.98

Interest income 3734.78 6534.22

Add: other income

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 “-”)

Net exposure hedging

income (Loss is listed with “-”)

Changing income of fair

value (Loss is listed with “-”)

Loss of credit impairment

(Loss is listed with “-”)

Losses of devaluation of

asset (Loss is listed with “-”)

Income on disposal of

assets (Loss is listed with “-”)

II. Operating profit (Loss is listed

with “-”)

997434.92 103923.72

Add: Non-operating income 37300.00

Less: Non-operating expense

III. Total Profit (Loss is listed with

“-”)

997434.92 141223.72

Less: Income tax 249358.73 35305.93

IV. Net profit (Net loss is listed with

“-”)

748076.19 105917.79

(i)continuous operating net profit (netloss listed with ‘-”)

748076.19 105917.79

(ii) termination of net profit (net

loss 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.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

VI. Total comprehensive income 748076.19 105917.79

VII. Earnings per share:

(i) Basic earnings per share 0.0026 0.0004

(ii) Diluted earnings per share 0.0026 0.0004

5. Consolidated Cash Flow Statement

In RMB

Item Current period Last period

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor

services

86584529.58 131395643.63

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

Other cash received concerning

operating activities

1372807.06 1243646.01

Subtotal of cash inflow arising from

operating activities

87957336.64 132639289.64

Cash paid for purchasing

commodities and receiving labor

service

56760923.41 85022628.29

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

8467600.61 16234429.46

Taxes paid 2351100.26 2076195.55

Other cash paid concerning

operating activities

12446403.77 9902133.35

Subtotal of cash outflow arising from

operating activities

80026028.05 113235386.65

Net cash flows arising from operating

activities

7931308.59 19403902.99

II. Cash flows arising from investing

activities:

Cash received from recovering

investment

Cash received from investment

income

37415.02 30941.58

Net cash received from disposal

of fixed intangible and other

long-term assets

91000.00

Net cash received from disposal

of subsidiaries and other units

Other cash received concerning

investing activities

25000000.00 46000000.00

Subtotal of cash inflow from

investing activities

25128415.02 46030941.58

Cash paid for purchasing fixed

intangible and other long-term assets

467211.58 1991100.36

Cash paid for investment

Net increase of mortgaged loans

Net cash received from

subsidiaries and other units obtained

Other cash paid concerning

investing activities

25000000.00 46000000.00

Subtotal of cash outflow from

investing activities

25467211.58 47991100.36

Net cash flows arising from investing

activities

-338796.56 -1960158.78

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 6725056.80 39255469.21

Other cash received concerning

financing activities

Subtotal of cash inflow from

financing activities

6725056.80 39255469.21

Cash paid for settling debts 20548487.80 51413400.63

Cash paid for dividend and

profit distributing or interest paying

2393884.15 3134606.87

Including: Dividend and profit

of minority shareholder paid by

subsidiaries

Other cash paid concerning

financing activities

Subtotal of cash outflow from

financing activities

22942371.95 54548007.50

Net cash flows arising from financing

activities

-16217315.15 -15292538.29

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

32336.78 65528.58

V. Net increase of cash and cash

equivalents

-8592466.34 2216734.50

Add: Balance of cash and cash

equivalents at the period -begin

36645061.61 27961209.60

VI. Balance of cash and cash

equivalents at the period -end

28052595.27 30177944.10

6. Cash Flow Statement of Parent Company

In RMB

Item Current period Last period

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor

services

9931734.48 8916021.40

Write-back of tax received

Other cash received concerning

operating activities

3939188.22 2102534.22

Subtotal of cash inflow arising from

operating activities

13870922.70 11018555.62

Cash paid for purchasing

commodities and receiving labor

service

Cash paid to/for staff and

workers

622769.26 841317.45

Taxes paid 1239019.63 458295.30

Other cash paid concerning

operating activities

7205331.06 15538788.71

Subtotal of cash outflow arising from

operating activities

9067119.95 16838401.46

Net cash flows arising from operating

activities

4803802.75 -5819845.84

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

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

Net cash flows arising from investing

activities

III. Cash flows arising from financing

activities

Cash received from absorbing

investment

Cash received from loans

Other cash received concerning

financing activities

Subtotal of cash inflow from

financing activities

Cash paid for settling debts 2000000.00

Cash paid for dividend and

profit distributing or interest paying

2015830.25 2174999.98

Other cash paid concerning

financing activities

Subtotal of cash outflow from

financing activities

4015830.25 2174999.98

Net cash flows arising from financing

activities

-4015830.25 -2174999.98

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

-23.63

V. Net increase of cash and cash 787972.50 -7994869.45

equivalents

Add: Balance of cash and cash

equivalents at the period -begin

2046143.44 12024179.58

VI. Balance of cash and cash

equivalents at the period -end

2834115.94 4029310.13

II. Explanation on financial statement adjustment

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

rules and new leasing rules from 2020

□Applicable √Not applicable

2. Retrospective adjustment of the comparative data for initial implementation of new revenue rules and

行情