Stock Code: 000025200025 No.: 2018-044

Short Form of Stock: Tellus A Tellus B

Shenzhen Tellus Holding Co. Ltd.Summary of Semi-Annual Report 2018

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

. 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) 197955081.73 160984104.56 22.97%

Net profit attributable to shareholders of

the listed Company (RMB)

26920279.86 24596905.09 9.45%

Net profit attributable to shareholders of

the listed Company after deducting

non-recurring gains and losses (RMB)

22098655.68 17705046.11 24.82%

Net cash flow arising from operating

activities (RMB)

-28070468.11 7380561.40 -480.33%

Basic earnings per share (RMB/Share) 0.0906 0.0827 9.55%

Diluted earnings per share (RMB/Share) 0.0906 0.0827 9.55%

Weighted average ROE 2.76% 2.71% 0.05%

Period-end Period-end of last year

Changes over period-end of

last year

Total assets (RMB) 1478584645.36 1403314594.42 5.36%

Net assets attributable to shareholder of

listed Company (RMB)

990179336.49 963259056.63 2.79%

3. Number of shares and share-holding

In Share

Total common stock shareholders in

reporting period-end

52145

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% 145925256 0

Shenzhen

Capital Fortune

Jewelry

Industry

Investment

Enterprise

Domestic non

state-owned

corporate

23.87% 70947000 0

(limited

partnership)

GUOTAI

JUNAN

SECURITIES(

HONGKONG)

LIMITED

Foreign

corporation

0.40% 1201304 0

Li Guangxin

Domestic

nature person

0.26% 761161 0

Agricultural

Bank of China

Ltd. – CSI 500

ETF

Other 0.16% 469200 0

He Xing

Domestic

nature person

0.10% 300100 0

Huang Chuyun

Domestic

nature person

0.09% 266500 0

Chen Guifei

Domestic

nature person

0.09% 260400 0

Celestial

Securities

Limited

Foreign

corporation

0.07% 196226 0

Zeng Huiming

Foreign nature

person

0.07% 195000 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)

N/A

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

During the reporting period in the context of the continuously sluggish domestic market environment the

Company continued to adhere to the market-oriented policy on the one hand it fully vitalized its own resources

improved the management level and cost control level of the automobile business and maintained stable operating

income of the automobile business; on the other hand it increased the operating income of resource assets by

strengthening management optimizing structure revitalizing resources and tapping the maximum potential of

stock business. On the basis of maintaining the original business scale the Company continued to push forward

the transformation of jewelry service business. During the reporting period Sichuan Jewelry Company and Tellus

Xingguang Jinzun operated steadily and the business scale reached record highs. The jewelry industry innovation

investment fund which the Company participated in the establishment has conducted in-depth screening to some

suitable targets and the fund investment projects will be actively promoted in the second half of the year; as a

dual-creation base awarded by the Development and Reform Commission of Shenzhen Municipality the

Company plans to take some property of Tellus Jewelry Building Phase I as a dual- creation industrial base of

which the embodiment is being implemented; during the report period the Company was elected as the executive

director of the GAC Intellectual Property Service Committee. Through the above-mentioned strategic

implementation measures the Company’s strategic transformation has taken a solid step accumulated industry

experience through actual operation and the visibility in the industry has been significantly improved through the

in-depth cooperation with many leading enterprises in the jewelry industry.

From January to June 2018 the Company achieved operating income of RMB 197955100 an increase of RMB

36971000 or 22.97% compared with RMB 160984100 in the same period of last year; the total profit was RMB

28454300 an increase of RMB 4429200 or 18.44% compared with RMB 24025100 in the same period of last

year; net profit attributable to the parent Company was RMB 26920300 an increase of RMB 2323400 or 9.45%

compared with RMB 24596900 in the same period of last year. The main reason for the increase in operating

income total profit and net profit attributable to the parent Company over the same period of last year was the

increase in the jewelry wholesale income of Sichuan Jewelry Company and the increase in investment income

from shareholding enterprises counted and drawn by equity method.In the future the Company will firmly promote the implementation of various strategic projects in accordance

with the transformation strategy so as to realize the growth of jewelry service business income and strive to

achieve the strategic transformation goals as soon as possible.. 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

The Company had no particulars about the changes in aspect of accounting policy estimates or calculation method in the reporting

period.

(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 applicableTotally 15 subsidiaries included in consolidatd scope for first half of 2018 and found more in “Equity in otherentity” in the Note VIII. One Company deducted in consolidation range in the Year.