Stock Code: 000025200025 No.: 2019-030

Short Form of Stock: Tellus A Tellus B

Shenzhen Tellus Holding Co. Ltd.Summary of Semi-Annual Report 2019

I. Important Notice

The summary of semi-annual report is excerpted from the full text of the semi-annual report. For the details investors should

carefully read the full text of the semi-annual report published on Juchao Information website (www.cninfo.com.cn) and Shenzhen

Stock Exchange Website etc. appointed by CSRC.

Board of Directors Supervisory Committee all directors supervisors and senior executives of Shenzhen Tellus Holding Co. Ltd.

(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.

All directors are attended the Board Meeting for report deliberation.

Prompt of non-standard audit opinion

□ Applicable √ Not applicable

Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting

period

□ Applicable √ Not applicable

There is no plan of cash bonus dividend distribution and capitalizing of common reserves carried out by the Company.Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period

□ Applicable √ Not applicable

II. Company profile

1. Company profile

Short form of the stock Tellus-A Tellus-B Stock code 000025 200025

Stock exchange for listing Shenzhen Stock Exchange

Person/Way to contact Secretary of the Board Rep. of security affairs

Name Qi Peng Sun Bolun

Office add.

15/F CNNC Building Shennan Middle

Road Futian District Shenzhen

15/F CNNC Building Shennan Middle

Road Futian District Shenzhen

Tel. （0755）83989378 （0755）83989339

E-mail ir@tellus.cn sunbl@tellus.cn

2. Main financial data and indexes

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

□Yes √ No

Current period Same period of last year Changes over last year

Operating income (RMB) 278268739.33 197955081.73 40.57%

Net profit attributable to shareholders of

the listed Company (RMB)

44779948.60 26920279.86 66.34%

Net profit attributable to shareholders of

the listed Company after deducting

non-recurring gains and losses (RMB)

40593359.72 22098655.68 83.69%

Net cash flow arising from operating

activities (RMB)

27434059.30 -28070468.11

Basic earnings per share (RMB/Share) 0.1039 0.0906 14.68%

Diluted earnings per share (RMB/Share) 0.1039 0.0906 14.68%

Weighted average ROE 4.17% 2.76% 1.41%

Period-end Period-end of last year

Changes over period-end of

last year

Total assets (RMB) 1711571788.47 1658295531.00 3.21%

Net assets attributable to shareholder of

listed Company (RMB)

1094989485.95 1050209537.35 4.26%

3. Number of shares and share-holding

In Share

Total common stock shareholders in

reporting period-end

54000

Total preference shareholders

with voting rights recovered at

end of reporting period (if

applicable)

0

Top ten shareholders

Full name of

Shareholders

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

Shenzhen

Special

Development

Group Co. Ltd.State-owned

corporation

49.09% 211591621 65666365 0

Shenzhen

Capital Fortune

Jewelry

Industry

Investment

Enterprise

Domestic non

state-owned

corporate

19.89% 85717844 20716244 0

(limited

partnership)

GUOTAI

JUNAN

SECURITIES(

HONGKONG)

LIMITED

Foreign

corporation

0.41% 1746091 548787 0

Agricultural

Bank of China

Ltd. – CSI 500

ETF

Other 0.34% 1463324 684483 0

Li Guangxin

Domestic

nature person

0.22% 964513 203352 0

Huang

Xinchang

Domestic

nature person

0.11% 463565 463565 0

Ding Bingfang

Foreign nature

person

0.11% 462550 196950 0

He Xing

Domestic

nature person

0.10% 444135 144035 0

China CITIC

Bank

Corporation

Limited -Jianxin

Securities 500

Index Enhanced

Investment

Fund

Other 0.10% 430419 294519 0

Zeng Huiming

Foreign nature

person

0.10% 419920 224920 0

Explanation on associated

relationship among the top ten

shareholders or consistent action

Among the top ten shareholders there exists no associated relationship between the state-owned

legal person’s shareholders SDG Ltd and other shareholders and they do not belong to the

consistent actionist regulated by the Management Measure of Information Disclosure on Change

of Shareholding for Listed Companies. For the other shareholders of circulation share the

Company is unknown whether they belong to the consistent actionist.

Explanation on involving margin

business (if applicable)

Shareholder Huang Xinchang holds 463565 shares of the Company through security account for

credit transactions and holds 0 share of the Company via common security account 463565

shares are held in total by Huang.

4. Changes of controlling shareholders or actual controller

Controlling shareholder changed in the Period

□ Applicable √ Not applicable

Controlling shareholders had no change in reporting period.

Actual controller changed in the Period

□ Applicable √ Not applicable

Actual controller had no change in reporting period.

5. Total preferred shareholders and top 10 shares held by preferred shareholders

□ Applicable √ Not applicable

The Company has no preferred shareholders

6. Corporate bond

Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when

semi-annual report approved for released or fail to cash in full on due

No

III. Discussion and analysis of operation

1. Operation status in the period

Does the Company need to comply with the disclosure requirements of the special industry

No

In the first half of 2019 the world economy was in a downturn the OECD released the economic outlook for the

first half of 2019 it is expected that tariffs and uncertainties in trade will affect China's economic growth. In the

first quarter China's GDP actually increased by 6.4% which was lower than the same period of last year the

GDP growth rate is 6.2% in the second quarter the Chinese economy is still at the bottom stage. Affected by the

sluggish domestic economic environment the automobile terminal retail market in 2018 showed its first decline in

28 years in the first half of 2019 the production and sales volume decreased compared with the same period of

last year the auto aftermarket faced a large downward pressure. The development trends of jewelry industry

showed great uncertainty jewelers are holding a wait-and-see attitude towards industry development in 2019 the

industry is still in a downturn SMEs are closed or changed the profession the jewelry industry is undergoing

in-depth adjustment the quantity demanded by commercial stores office space etc. is also correspondingly

reduced the regional channel platform for the jewelry operated by our company and the resource-based asset

leasing are under great pressure.In the face of the complicated economic situation in the first half of the year Tellus Group has sailed in the head

tide guided by the strugglers fully motivated the employees and activated the kinetic energy of the enterprise;

intensively carried out all the key tasks tapped the potential of old properties and continued to lay out new

projects in the jewelry market meanwhile strictly maintained the bottom line of risk control to ensure that the

economic indicators of our company in the first half of the year exceeded the same period last year.In the reporting period the Company achieved operating income of 278.2687 million Yuan an increase of

80.3136 million Yuan or 40.57% compared with 197.9551 million Yuan in the same period of last year; growth of

the income mainly due to the operation revenue from Phase I of Jewelry Building and income of jewelry

wholesale from Sichuan Jewelry Company. The total profit was 51.0208 million Yuan an increase of 22.5665

million Yuan compared with 28.4543 million Yuan in same period of last year net profit attributable to the parent

Company was 44.7799 million Yuan an increase of 17.8596 million Yuan or 66.37% compared with 26.9203

million Yuan in the same period of last year.2. Matters relevant to financial report

(1) Particulars about the changes in aspect of accounting policy estimates and calculation method

compared with the accounting period of last year

√Applicable □ Not applicable

(1) Changes in Accounting policy

①Changes in accounting policies for execution of the new financial instrument standards

On March 31 2017 the Ministry of Finance issued the Accounting Standards for Business Enterprises No. 22 -

Recognition and Measurement of Financial Instruments (Revised in 2017) (CK [2017] No. 7) and Accounting

Standards for Business Enterprises No. 23 - Transfer of Financial Assets (Revised in 2017) (CK [2017] No. 8)

Accounting Standards for Business Enterprises No. 24 - Hedge Accounting (Revised in 2017) (CK [2017] No. 9)

respectively and issued Accounting Standards for Business Enterprises No. 37 – Financial Instruments

Presentation (Revised in 2017) (CK [2017] No. 14) on May 2 2017 (the above-mentioned standards are

collectively referred to as the “New Financial Instruments Standards”) domestic listed companies are required to

implement the new financial instrument standards since 1 Jan. 2019.

Approved by the resolution of 2

nd

session of 9

th

BOD dated 1 April 2019 the Company will implement the above

mentioned new financial instrument standards since 1 Jan. 2019.

All recognized financial assets under the new financial instrument standard are subsequently measured at

amortized cost or fair value. On the implementation date of the new financial instrument standard the business

model of managing financial assets is evaluated based on the facts and circumstances of the Company on the day

and the contractual cash flow characteristics of the financial assets are evaluated based on the facts and

circumstances at the initial recognition of the financial assets. Financial assets are classified into three categories:

those measured at amortized cost those measured at fair value and the changes are included in other

comprehensive income and those measured at fair value and the changes are included in current profit or loss.

Among them for the equity instrument investment measured at fair value and whose changes are included in other

comprehensive income when the financial asset is derecognized the accumulated gain or loss previously included

in other comprehensive income shall be transferred from other comprehensive income to retained earnings but

not included in the current profit and loss.Under the new financial instrument standard the Company makes the impairment provision and confirms the

credit impairment losses for financial assets measured at amortized cost debt instrument investments measured at

fair value and whose changes are included in other comprehensive income lease receivables contract assets and

the financial guarantee contracts based on expected credit losses.The Company traces the application of the new financial instrument standards but the Company chooses not to

restate the classification and measurement (including impairment) involving the inconsistency between the

previous comparative financial statement data and the new financial instrument standards. Therefore for the

cumulative impact of the implementation of the standard for the first time the Company adjusted the retained

earnings or other comprehensive income at the beginning of 2019 and the amount of other related items in the

financial statements and the financial statements for 2018 didn’t restate it.The main changes and impacts of the implementation of the new financial instruments standards on the Company

are as follows:

Some non-trading equity investments held by the Company on or after January 1 2019 are designated as financial

assets measured at fair value and whose changes are included in other comprehensive income and are presented

as other equity instrument investments.

A- Category and measuring contrast of the financial instrument after/before the date when initially

implementation

a- impact on consolidate financial statement

2018-12-31(before change) 2019-1-1(after change)

Item Measurement

category

Book value Item Measurement

category

Book value

Available-for-sale

financial assets

Measured by

cost (equity

instrument)

10176617.20

Other equity

instrument

investment

Measured by fair

value and with its

variation reckoned

into other

comprehensive

income

10176617.20

Other current

assets

Measured by

fair value and

with its

variation

reckoned into

current

gain/loss

330400000.00

Trading

financial assets

Measured by fair

value and with its

variation reckoned

into current

gain/loss

330400000.00

b-impact on financial statement of the Company

2018-12-31(before change) 2019-1-1(after change)

Item Measurement

category

Book value Item Measurement

category

Book value

Available-for-sale

financial assets

Measured by

cost (equity

instrument)

10176617.20

Other equity

instrument

investment

Measured by fair

value and with its

variation

reckoned into

other

comprehensive

income

10176617.20

Other current

assets

Measured by

fair value and

with its

variation

reckoned into

195000000.00

Trading

financial assets

Measured by fair

value and with its

variation

reckoned into

current gain/loss

195000000.00

2018-12-31(before change) 2019-1-1(after change)

Item Measurement

category

Book value Item Measurement

category

Book value

current

gain/loss

B- On first implementation day adjustment statement of the category and measurement for former financial

instrument and those adjusted with new financial instrument standards

a- impact on consolidate statement

Item

2018-12-31(befor

e change)

Re-classified Re-measured

2019-1-1(after

change)

Measured by fair value and with its

variation reckoned into other

comprehensive income:

Available-for-sale financial assets

(former standard)

10176617.20

Less: transfer to other equity

instrument investment

10176617.20

Balance under new financial instrument

standard

Other equity instrument investment ——

Add: transfer in from available-for-sale

financial assets (former standard)

10176617.20 10176617.20

Balance under new financial instrument

standard

10176617.20

Measured by fair value and with its

variation reckoned into current

gain/loss:

Other current assets 332432494.44

Less: transfer to trading financial assets 330400000.00

Item

2018-12-31(befor

e change)

Re-classified Re-measured

2019-1-1(after

change)

Balance under new financial instrument

standard

2032494.44

Trading financial assets ——

Add: transfer-in from other current

assets

330400000.00

Balance under new financial instrument

standard

330400000.00

b. impact on financial statement of the Company

Item

2018-12-31(befor

e change)

Re-classified Re-measured

2019-1-1(after

change)

Measured by fair value and with its

variation reckoned into other

comprehensive income:

Available-for-sale financial assets

(former standard)

10176617.20

Less: transfer to other equity

instrument investment

10176617.20

Balance under new financial instrument

standard

Other equity instrument investment ——

Add: transfer in from available-for-sale

financial assets (former standard)

10176617.20 10176617.20

Balance under new financial instrument

standard

10176617.20

Measured by fair value and with its

Item

2018-12-31(befor

e change)

Re-classified Re-measured

2019-1-1(after

change)

variation reckoned into current

gain/loss:

Other current assets 195506958.35

Less: transfer to trading financial assets 195000000.00

Balance under new financial instrument

standard

506958.35

Trading financial assets ——

Add: transfer-in from other current

assets

195000000.00

Balance under new financial instrument

standard

195000000.00

C- On first implementation day adjustment on the impairment provision for financial assets

a- impact on consolidate statement

Measurement category

2018-12-31(before

change)

Re-classified Re-measured

2019-1-1(after

change)

Amortized cost:

Impairment of

held-to-maturity investment

20000.00 20000.00

Measured by fair value and

with its variation reckoned

into other comprehensive

income(equity instrument) :

Impairment provision for

other creditors’ investment

—— 20000.00 20000.00

(2) Changes of accounting estimate

Contents causes and applicable time points of

accounting estimation change

Approval

procedure

Items impact Amount impact

The Company considers the architectural design and

construction standards of newly completed buildings

and the accelerating update speed of computer

equipment in order to make the company's

accounting estimates better conform to the actual use

of assets more accurately reflect the period during

which assets provide economic benefits to enterprises

and the actual assets consumption of every term and

more objectively and truthfully reflect the company's

financial status and operating results the resolution

of the second meeting of the 9th Board of Directors of

the Company on April 1 2019 passed that the

Company would change the service life of buildings

from 35 years to 35-40 years and change the

depreciable life of computer equipment in electronic

equipment from 7 years to 5 years on the date of the

resolution.Internal

procedures

Fixed assets Investment real

estate main business cost

administrative expenses

337023.38

(2) Particulars about retroactive restatement on major correction for accounting errors in reporting period

□ Applicable √ Not applicable

The Company had no particulars about retroactive restatement on major correction for accounting errors in the reporting period.

(3) Particulars about the change of consolidation range compared with the accounting period of last year

□ Applicable √ Not applicable

The Company had no particular about the change of consolidation range compared in reporting period.