ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarter Report 2020

SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE

& PROPERTIES (GROUP) CO. LTD.

FIRST QUARTER REPORT 2020

April 2020

ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarter Report 2020

2

Part I Important Notes

The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors

supervisors and senior management of ShenZhen Special Economic Zone Real Estate &

Properties (Group) Co. Ltd. (hereinafter referred to as the “Company”) hereby guarantee the

factuality accuracy and completeness of the contents of this Report and its summary and

shall be jointly and severally liable for any misrepresentations misleading statements or

material omissions therein.

All the Company’s directors have attended the Board meeting for the review of this Report

and its summary.Liu Zhengyu the Chairman of the Board Chen Maozheng the General Manager Tang

Xiaoping the head for financial affairs and Qiao Yanjun the head of the financial

department (equivalent to financial manager) hereby guarantee that the Financial Statements

carried in this Report are factual accurate and complete.This Report and its summary have been prepared in both Chinese and English. Should there

be any discrepancies or misunderstandings between the two versions the Chinese versions

shall prevail.Part II Key Corporate Information

I Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No

Q1 2020 Q1 2019 Change (%)

Operating revenue (RMB) 256842391.67 424535370.83 -39.50%

Net profit attributable to the listed

company’s shareholders (RMB)

28114908.77 84028728.24 -66.54%

Net profit attributable to the listed

company’s shareholders before exceptional

items (RMB)

28075623.63 84055572.77 -66.60%

Net cash generated from/used in operating

activities (RMB)

-435258963.67 217157204.59 -300.43%

Basic earnings per share (RMB/share) 0.0278 0.0831 -66.55%

Diluted earnings per share (RMB/share) 0.0278 0.0831 -66.55%

Weighted average return on equity (%) 0.76% 2.49% -1.73%

31 March 2020 31 December 2019 Change (%)

Total assets (RMB) 4499382506.19 4909669536.09 -8.36%

Equity attributable to the listed company’s

shareholders (RMB)

3695538782.58 3666874569.99 0.78%

Exceptional gains and losses:

√ Applicable □ Not applicable

Unit: RMB

Item Q1 2020 Note

Gain or loss on disposal of non-current assets (inclusive of

impairment allowance write-offs)

-17928.00

Non-operating income and expense other than the above 70308.19

Less: Income tax effects 13095.05

Total 39285.14 --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory

Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss

Items:

□ Applicable √ Not applicable

No such cases for the Reporting Period.II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2020

1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as

Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders at

the period-end

76443

Number of preferred shareholders

with resumed voting rights at the

period-end (if any)

0

Top 10 shareholders

Name of

shareholder

Nature of

shareholder

Shareholding

percentage

Total shares held

Restricted shares

held

Shares in pledge or frozen

Status Shares

Shenzhen

Investment

Holdings Co. Ltd

State-owned legal

person

63.55% 642884262

Shandong Gold

Financial Holding

Capital

Management Co.Ltd. － Shandong

Gold Financial

Holding

Sustaining Fund

1

Domestic

non-state-owned

legal person

1.02% 10300000

Lu Zhigao

Domestic natural

person

0.32% 3246949

Tan Shiqing

Domestic natural

person

0.13% 1286701

Yang Shuilian

Domestic natural

person

0.13% 1273700

Yang Jianxiong

Domestic natural

person

0.12% 1255750

Central Huijin

Asset

Management Co.Ltd.State-owned legal

person

0.12% 1165500

Peng Wei

Domestic natural

person

0.11% 1129082

Wu Haoyuan

Foreign natural

person

0.11% 1109300

GUOTAI

JUNAN

SECURITIES(H

ONGKONG)

LIMITED

Foreign legal

person

0.10% 1015683

Top 10 unrestricted shareholders

Name of shareholder Unrestricted shares held

Shares by type

Type Shares

Shenzhen Investment Holdings Co.Ltd

642884262

RMB-denominate

d ordinary stock

642884262

Shandong Gold Financial Holding

Capital Management Co. Ltd. －

Shandong Gold Financial Holding

Sustaining Fund 1

10300000

RMB-denominate

d ordinary stock

10300000

Lu Zhigao 3246949

RMB-denominate

d ordinary stock

3246949

Tan Shiqing 1286701

RMB-denominate

d ordinary stock

1286701

Yang Shuilian 1273700

RMB-denominate

d ordinary stock

1273700

Yang Jianxiong 1255750

Domestically

listed foreign

stock

1255750

Central Huijin Asset Management

Co. Ltd.

1165500

RMB-denominate

d ordinary stock

1165500

Peng Wei 1129082

RMB-denominate

d ordinary stock

1129082

Wu Haoyuan 1109300

Domestically

listed foreign

stock

1109300

GUOTAI JUNAN

SECURITIES(HONGKONG)

LIMITED

1015683

Domestically

listed foreign

stock

1015683

Related or acting-in-concert parties

among the shareholders above

The Company has found no related parties or acting-in-concert parties as defined in the

Administrative Measures for Shareholding Changes in Listed Companies among the

shareholders above.Top 10 ordinary shareholders

involved in securities margin trading

(if any)

The fourth shareholder holds all his shares in the Company in his accounts of credit. And the

third shareholder holds some of his shares in the Company in such accounts.Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the

Company conducted any promissory repo during the Reporting Period.

□ Yes √ No

No such cases in the Reporting Period.

2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

Part III Significant Events

I Changes in Key Financial Statement Line Items and Explanation of why

√ Applicable □ Not applicable

Operating revenue declined 39.50% during Q1 2020 compared to Q1 2019 primarily driven by a

decrease in property sales revenue caused by the COVID-19 outbreak.Selling expenses declined 73.92% during Q1 2020 compared to Q1 2019 primarily driven by a

nearly full stop of marketing activities in Q1 2020 due to the COVID-19 outbreak.

Advances from customers rose 59.72% as at 31 March 2020 compared to 31 December 2019

primarily driven by an increase in engineering advances received by subsidiary Zhentong

Engineering in Q1 2020.

Taxes payable declined 75.42% as at 31 March 2020 compared to 31 December 2019 primarily

driven by the payment of land VAT for the Cuilinyuan project.Net cash generated from operating activities declined 300.43% during Q1 2020 compared to Q1

2019 primarily driven by a decrease in sales revenue collected and an increase in taxes paid.

Net cash generated from investing activities declined 100% during Q1 2020 compared to Q1 2019

primarily driven by the recovery of the principal of a RMB900 million structured deposit with the

corresponding interest on 22 March 2019.II Progress Influence and Solutions with regard to Significant Events

√ Applicable □ Not applicable

Since the controlling shareholder of the Company is planning a significant event that involves the

Company upon the application to the Shenzhen Stock Exchange trading in the stocks of the

Company (A-stock under the name of “SPG A” and the symbol of “000029”; B-stock under the

name of “SPG B” and the symbol of “200029”) was suspended starting from the opening of 14

September 2016. The Company disclosed the Announcement on Share Trading Suspension due to

Planning of Significant Event (No. 2016-022) the Announcement on Continued Share Trading

Suspension due to Planning of Significant Event (No. 2016-023) and the Announcement on

Continued Share Trading Suspension due to Planning of Significant Event (No. 2016-024) on 14

September 2016 22 September 2016 and 29 September 2016 respectively. Upon ascertainment the

event constituted a material asset restructuring. The Company disclosed the Announcement on

Share Trading Suspension due to Planning of Major Assets Restructuring (No. 2016-025) on 30

September 2016 and the Announcement on Signing Cooperation Agreement on Restructuring and

Listing (No. 2016-027) on 10 October 2016.The Company convened the 33

rd

Meeting of the 7

th

Board of the Directors on 11 November 2016

which the Proposal on Continued Share Trading Suspension due to Planning of Major Assets

Restructuring was reviewed and approved. For details see the Announcement on Continued Share

Trading Suspension after Expiration of Period of Share Trading Suspension due to Planning of

Major Assets Restructuring (No. 2016-039) disclosed on 14 November 2016.The Company convened the 1

st

Extraordinary General Meeting of 2016 on 12 December 2016 on

which the Proposal on Continued Share Trading Suspension due to Planning of Major Assets

Restructuring was reviewed and approved. For details see the Announcement on Application for

Continued Share Trading Suspension after Expiration of Period of Share Trading Suspension due

to Planning of Major Assets Restructuring (No. 2016-047) disclosed on 13 December 2016.The Company held an online illustration meeting to investors on 10 March 2017 communicating

this major assets restructuring with them and answering questions that they were generally

concerned about with the information allowed to be disclosed. For details see the Announcement on

Online Illustration Meeting to Investors (No. 2017-012) disclosed on 11 March 2017.

On 14 December 2019 the Company disclosed the Announcement on Signing the Supplementary

Agreement VI of the Cooperation Agreement governing Restructuring and Listing (No. 2019-090)

which extends the exclusivity period and validity period stipulated in the restructuring cooperation

agreement to 31 December 2020.To ensure the smooth progress of this major assets restructuring prevent abnormal fluctuations in

the prices of its stocks and protect the rights and interests of its non-controlling interests the

Company has applied to the Shenzhen Stock Exchange for continued share trading suspension for

no more than 1 month as of 14 April 2020 and expects to disclose the major assets restructuring

plan or report according to the requirements of the Standards for the Contents and Formats of

Information Disclosure by Companies Offering Securities to the Public No. 26—Major Assets

Restructuring of Listed Companies prior to 14 May 2020. For details see the Announcement on

Delay of Share Trading Resumption of Planning of Major Assets Restructuring (No. 2020-028)

disclosed on 14 April 2020.

During the share trading suspension period the Company shall disclose the progress of this major

assets restructuring at least every five trading days in strict accordance with the requirements of

applicable laws and regulations. At present this major assets restructuring is proceeding smoothly.This major assets restructuring is subject to great uncertainty. Therefore investors are kindly

reminded to pay attention to possible investment risk.Summary of the significant event Disclosure date Index to the related announcement

Delay of share trading resumption due to

the major assets restructuring

14 April 2020

Announcement on Delay of Share Trading

Resumption due to the Major Assets

Restructuring in Planning disclosed on

www.cninfo.com.cn

Progress of any share repurchase:

□ Applicable √ Not applicable

Progress of any reduction of the repurchased shares through centralized bidding:

□ Applicable √ Not applicable

III Commitments that the Company’s Actual Controller Shareholders Related Parties

Acquirers the Company Itself or Other Parties Failed to Fulfill on Time during the

Reporting Period

□ Applicable √ Not applicable

No such cases in the Reporting Period.IV Operating Performance Forecast for H1 2020

Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019 as well as explanation of

why:

√ Applicable □ Not applicable

Forecast of operating results: Significant year-over-year decreases

Type of forecast data: Interval data

January-June 2020

January-June

2019

Change

Equity attributable to

shareholders of the listed

company (RMB’0000)

8000 -- 12000 33315.58 Down -75.99% -- -63.98%

Basic earnings per share

(RMB /share)

0.0791 -- 0.1186 0.3293 Down -75.98% -- -63.98%

Note

Affected by COVID-19 epidemic the sales carryforwards of the Company’s real estate decreased

year on year.V Securities Investments

□ Applicable √ Not applicable

No such cases in the Reporting Period.

VI Cash Entrusted for Wealth Management

□ Applicable √ Not applicable

No such cases in the Reporting Period.VII Investments in Derivative Financial Instruments

□ Applicable √ Not applicable

No such cases in the Reporting Period.VIII Communications with the Investment Community such as Researches Inquiries and

Interviews during the Reporting Period

√ Applicable □ Not applicable

Date Way of communication

Type of communication

party

Index to main information

communicated

13 January 2020 By phone Individual

Asked about the progress of the assets

restructuring and the development and

sales of property projects the annual

operating with no written materials

provided by the Company

22 January 2020 By phone Individual

Asked about the progress of the assets

restructuring and the fundamentals of the

Company with no written materials

provided by the Company

2 March 2020 By phone Individual

Asked about the progress of the assets

restructuring the annual operating

results and the expected disclosure date

of the annual report with no written

materials provided by the Company

5 March 2020 By phone Individual

Asked about the progress of assets

restructuring and share trading

resumption time of the Company with

no written materials provided by the

Company

16 March 2020 By phone Individual

Asked about the progress of assets

restructuring and share trading

resumption time of the Company with

no written materials provided by the

Company

19 March 2020 By phone Individual

Asked about the progress of the assets

restructuring and the fundamentals of the

Company with no written materials

provided by the Company

26 March 2020 By phone Individual

Asked about the progress of the assets

restructuring and plan and arrangement

with no written materials provided by the

Company

31 March 2020 By phone Individual

Asked about the progress of the assets

restructuring reason for long-time

trading suspension and expected share

trading resumption time with no written

materials provided by the Company

IX Irregularities in the Provision of Guarantees

□ Applicable √ Not applicable

No such cases in the Reporting Period.X Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties

for Non-Operating Purposes

□ Applicable √ Not applicable

No such cases in the Reporting Period.Part IV Financial Statements

I Financial Statements

1. Consolidated Balance Sheet

Prepared by ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.

31 March 2020

Unit: RMB

Item 31 March 2020 31 December 2019

Current assets:

Monetary assets 2075981316.46 2511140445.35

Settlement reserve

Interbank loans granted

Held-for-trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable 67855222.99 62059055.68

Accounts receivable financing

Prepayments 5863208.45 219948.17

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

reserve

Other receivables 22301519.57 28275228.26

Including: Interest receivable

Dividends receivable 1052192.76 1052192.76

Financial assets purchased under

resale agreements

Inventories 1493846098.94 1462229048.18

Contractual assets

Assets classified as held for sale

Current portion of non-current assets

Other current assets 105408753.00 102781855.48

Total current assets 3771256119.41 4166705581.12

Non-current assets:

Loans and advances to customers

Investments in debt obligations

Investments in other debt obligations

Long-term receivables

Long-term equity investments 469838.65 469838.65

Investments in other equity

instruments

32890635.69 33126730.04

Other non-current financial assets

Investment property 625480049.40 632241900.20

Fixed assets 29909411.40 30522035.11

Construction in progress

Productive living assets

Oil and gas assets

Use rights assets

Intangible assets

R&D expense

Goodwill

Long-term prepaid expense 157951.27 162125.72

Deferred income tax assets 39218500.37 46441325.25

Other non-current assets

Total non-current assets 728126386.78 742963954.97

Total assets 4499382506.19 4909669536.09

Current liabilities:

Short-term borrowings 50380946.52 51647260.17

Borrowings from the central bank

Interbank loans obtained

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 181369294.21 244224478.46

Advances from customers 254726724.92 159482510.43

Contractual liabilities

Financial assets sold under

repurchase agreements

Customer deposits and interbank

deposits

Payables for acting trading of

securities

Payables for underwriting of

securities

Payroll payable 42386925.57 53909576.49

Taxes payable 143938430.44 585700815.36

Other payables 259683895.05 277319174.53

Including: Interest payable 16535277.94 16535277.94

Dividends payable

Handling charges and commissions

payable

Reinsurance payables

Liabilities directly associated with

assets classified as held for sale

Current portion of non-current

liabilities

Other current liabilities

Total current liabilities 932486216.71 1372283815.44

Non-current liabilities:

Insurance contract reserve

Long-term borrowings

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities

Long-term payables 7975195.54 7499192.92

Long-term payroll payable

Provisions

Deferred income

Deferred income tax liabilities 4903293.58 4903293.58

Other non-current liabilities

Total non-current liabilities 12878489.12 12402486.50

Total liabilities 945364705.83 1384686301.94

Owners’ equity:

Share capital 1011660000.00 1011660000.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 978244910.11 978244910.11

Less: Treasury stock

Other comprehensive income 21380307.95 20831004.13

Specific reserve

Surplus reserves 191222838.94 191222838.94

General reserve

Retained earnings 1493030725.58 1464915816.81

Total equity attributable to owners of

the Company as the parent

3695538782.58 3666874569.99

Non-controlling interests -141520982.22 -141891335.84

Total owners’ equity 3554017800.36 3524983234.15

Total liabilities and owners’ equity 4499382506.19 4909669536.09

Legal representative: Liu Zhengyu Head for financial affairs: Tang Xiaoping

Head of the financial department: Qiao Yanjun

2. Balance Sheet of the Company as the Parent

Unit: RMB

Item 31 March 2020 31 December 2019

Current assets:

Monetary assets 1721050662.69 1967688122.55

Held-for-trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable 585081.41 156935.84

Accounts receivable financing

Prepayments 200000.00 200000.00

Other receivables 1114451965.99 835275498.69

Including: Interest receivable

Dividends receivable

Inventories 400772626.44 419453091.86

Contractual assets

Assets classified as held for sale

Current portion of non-current assets

Other current assets 417291.38 407560.64

Total current assets 3237477627.91 3223181209.58

Non-current assets:

Investments in debt obligations

Investments in other debt obligations

Long-term receivables

Long-term equity investments 150676516.92 150676516.92

Investments in other equity

instruments

13396131.37 13229501.03

Other non-current financial assets

Investment property 516315435.53 522038731.16

Fixed assets 18980278.57 19586720.47

Construction in progress

Productive living assets

Oil and gas assets

Use rights assets

Intangible assets

R&D expense

Goodwill

Long-term prepaid expense

Deferred income tax assets 136142.81 162125.72

Other non-current assets 20975294.54 20975294.54

Total non-current assets 720479799.74 726668889.84

Total assets 3957957427.65 3949850099.42

Current liabilities:

Short-term borrowings

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 101027919.97 103915931.14

Advances from customers 61448878.38 59409454.38

Contractual liabilities

Payroll payable 25525958.33 25544403.23

Taxes payable 135449969.53 143434273.95

Other payables 179738349.54 190666487.82

Including: Interest payable 16535277.94 16535277.94

Dividends payable

Liabilities directly associated with

assets classified as held for sale

Current portion of non-current

liabilities

Other current liabilities

Total current liabilities 503191075.75 522970550.52

Non-current liabilities:

Long-term borrowings

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities

Long-term payables

Long-term payroll payable

Provisions

Deferred income

Deferred income tax liabilities 1295046.51 1295046.51

Other non-current liabilities

Total non-current liabilities 1295046.51 1295046.51

Total liabilities 504486122.26 524265597.03

Owners’ equity:

Share capital 1011660000.00 1011660000.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 964711931.13 964711931.13

Less: Treasury stock

Other comprehensive income 1088756.11 922125.77

Specific reserve

Surplus reserves 168093225.53 168093225.53

Retained earnings 1307917392.62 1280197219.96

Total owners’ equity 3453471305.39 3425584502.39

Total liabilities and owners’ equity 3957957427.65 3949850099.42

3. Consolidated Income Statement

Unit: RMB

Item Q1 2020 Q1 2019

1. Revenue 256842391.67 424535370.83

Including: Operating revenue 256842391.67 424535370.83

Interest income

Premium income

Handling charge and

commission income

2. Costs and expenses 216220676.90 325163686.57

Including: Cost of sales 165557827.24 202277666.23

Interest expense

Handling charge and

commission expense

Surrenders

Net claims paid

Net amount provided as

policy reserve

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and surcharges 34413593.98 98423101.84

Selling expense 3479194.67 13343017.90

Administrative expense 15804366.15 13778473.34

R&D expense

Finance costs -3034305.14 -2658572.74

Including: Interest

expense

28275.01

Interest

income

2928449.72 3125874.09

Add: Other income 238643.87

Return on investment (“-” for loss) 9083234.25

Including: Share of profit or loss

of joint ventures and associates

Income from the

derecognition of financial assets at

amortized cost (“-” for loss)

Foreign exchange gain (“-” for

loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

for loss)

Credit impairment loss (“-” for

loss)

Asset impairment loss (“-” for loss)

Asset disposal income (“-” for

loss)

3. Operating profit (“-” for loss) 40860358.64 108454918.51

Add: Non-operating income 662480.93 181.09

Less: Non-operating expense 610100.74 35973.80

4. Profit before tax (“-” for loss) 40912738.83 108419125.80

Less: Income tax expense 12764075.66 24342268.36

5. Net profit (“-” for net loss) 28148663.17 84076857.44

5.1 By operating continuity

5.1.1 Net profit from continuing

operations (“-” for net loss)

28148663.17 84076857.44

5.1.2 Net profit from discontinued

operations (“-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to

owners of the Company as the parent

28114908.77 84028728.24

5.2.1 Net profit attributable to

non-controlling interests

33754.40 48129.20

6. Other comprehensive income net of

tax

885903.03 2286558.31

Attributable to owners of the Company

as the parent

549303.82 1600590.82

6.1 Items that will not be

reclassified to profit or loss

-236094.35

6.1.1 Changes caused by

remeasurements on defined benefit

pension schemes

6.1.2 Other comprehensive

income that will not be reclassified to

profit or loss under the equity method

6.1.3 Changes in the fair value of

investments in other equity instruments

-236094.35

6.1.4 Changes in the fair value of

the company’s credit risks

6.1.5 Other

6.2 Items that will be reclassified to

profit or loss

785398.17 1600590.82

6.2.1 Other comprehensive

income that will be reclassified to profit

or loss under the equity method

6.2.2 Changes in the fair value of

investments in other debt obligations

6.2.3 Other comprehensive

income arising from the reclassification

of financial assets

6.2.4 Allowance for credit

impairments in investments in other debt

obligations

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign

currency-denominated financial

statements

785398.17 1600590.82

6.2.7 Other

Attributable to non-controlling

interests

336599.21 685967.49

7. Total comprehensive income 29034566.20 86363415.75

Attributable to owners of the Company

as the parent

28664212.59 85629319.06

Attributable to non-controlling

interests

370353.61 734096.69

8. Earnings per share

8.1 Basic earnings per share 0.0278 0.0831

8.2 Diluted earnings per share 0.0278 0.0831

Where business combinations under common control occurred in the current period the net profit achieved by the acquirees before

the combinations was RMB0.00 with the amount for the same period of last year being RMB0.00.Legal representative: Liu Zhengyu Head for financial affairs: Tang Xiaoping

Head of the financial department: Qiao Yanjun

4. Income Statement of the Company as the Parent

Unit: RMB

Item Q1 2020 Q1 2019

1. Operating revenue 83770856.13 193299003.22

Less: Cost of sales 25213820.41 31591927.69

Taxes and surcharges 23716419.18 79883135.16

Selling expense 747374.05 10905238.86

Administrative expense 8557010.42 5229110.88

R&D expense

Finance costs -11823080.33 -2692984.60

Including: Interest expense

Interest income 7768291.80

Add: Other income 22591.96

Return on investment (“-” for

loss)

9083234.25

Including: Share of profit or

loss of joint ventures and associates

Income from the

derecognition of financial assets at

amortized cost (“-” for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

for loss)

Credit impairment loss (“-” for

loss)

Asset impairment loss (“-” for

loss)

Asset disposal income (“-” for

loss)

2. Operating profit (“-” for loss) 37381904.36 77465809.48

Add: Non-operating income 100000.00 40.01

Less: Non-operating expense 500000.00

3. Profit before tax (“-” for loss) 36981904.36 77465849.49

Less: Income tax expense 9261731.70 17108190.61

4. Net profit (“-” for net loss) 27720172.66 60357658.88

4.1 Net profit from continuing

operations (“-” for net loss)

27720172.66 60357658.88

4.2 Net profit from discontinued

operations (“-” for net loss)

5. Other comprehensive income net of

tax

166630.34

5.1 Items that will not be reclassified

to profit or loss

5.1.1 Changes caused by

remeasurements on defined benefit

pension schemes

5.1.2 Other comprehensive income

that will not be reclassified to profit or

loss under the equity method

5.1.3 Changes in the fair value of

investments in other equity instruments

5.1.4 Changes in the fair value of

the company’s credit risks

5.1.5 Other

5.2 Items that will be reclassified to

profit or loss

166630.34

5.2.1 Other comprehensive income

that will be reclassified to profit or loss

under the equity method

5.2.2 Changes in the fair value of

investments in other debt obligations

166630.34

5.2.3 Other comprehensive income

arising from the reclassification of

financial assets

5.2.4 Allowance for credit

impairments in investments in other

debt obligations

5.2.5 Reserve for cash flow hedges

5.2.6 Differences arising from the

translation of foreign

currency-denominated financial

statements

5.2.7 Other

6. Total comprehensive income 27886803.00 60357658.88

7. Earnings per share

7.1 Basic earnings per share

7.2 Diluted earnings per share

5. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2020 Q1 2019

1. Cash flows from operating activities:

Proceeds from sale of commodities

and rendering of services

261043476.47 687255636.15

Net increase in customer deposits and

interbank deposits

Net increase in borrowings from the

central bank

Net increase in loans from other

financial institutions

Premiums received on original

insurance contracts

Net proceeds from reinsurance

Net increase in deposits and

investments of policy holders

Interest handling charges and

commissions received

Net increase in interbank loans

obtained

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax rebates 74607.97

Cash generated from other operating

activities

29955959.84 10152937.27

Subtotal of cash generated from

operating activities

290999436.31 697483181.39

Payments for commodities and

services

97053822.51 207428364.66

Net increase in loans and advances to

customers

Net increase in deposits in the central

bank and in interbank loans granted

Payments for claims on original

insurance contracts

Net increase in interbank loans

granted

Interest handling charges and

commissions paid

Policy dividends paid

Cash paid to and for employees 43783011.73 41274575.65

Taxes paid 499313151.21 155769904.37

Cash used in other operating

activities

86108414.53 75853132.12

Subtotal of cash used in operating

activities

726258399.98 480325976.80

Net cash generated from/used in

operating activities

-435258963.67 217157204.59

2. Cash flows from investing activities:

Proceeds from disinvestment 900000000.00

Return on investment 11365734.25

Net proceeds from the disposal of

fixed assets intangible assets and other

long-lived assets

1000.00

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

activities

Subtotal of cash generated from

investing activities

1000.00 911365734.25

Payments for the acquisition of fixed

assets intangible assets and other

long-lived assets

28007.52 42278.00

Payments for investments

Net increase in pledged loans granted

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing

activities

Subtotal of cash used in investing

activities

28007.52 42278.00

Net cash generated from/used in

investing activities

-27007.52 911323456.25

3. Cash flows from financing activities:

Capital contributions received

Including: Capital contributions by

non-controlling interests to subsidiaries

Borrowings obtained

Cash generated from other financing

activities

Subtotal of cash generated from

financing activities

Repayments of borrowings

Payments for interest and dividends

Including: Dividends paid by

subsidiaries to non-controlling interests

Cash used in other financing

activities

Subtotal of cash used in financing

activities

Net cash generated from/used in

financing activities

4. Effect of foreign exchange rate

changes on cash and cash equivalents

126842.30 -229218.70

5. Net increase in cash and cash

equivalents

-435159128.89 1128251442.14

Add: Cash and cash equivalents

beginning of the period

1507189760.35 1148522435.93

6. Cash and cash equivalents end of the

period

1072030631.46 2276773878.07

6. Cash Flow Statement of the Company as the Parent

Unit: RMB

Item Q1 2020 Q1 2019

1. Cash flows from operating activities:

Proceeds from sale of commodities

and rendering of services

76737396.13 401066898.41

Tax rebates 2122.45

Cash generated from other operating

activities

3015470.24 20292638.39

Subtotal of cash generated from

operating activities

79752866.37 421361659.25

Payments for commodities and

services

8991236.23 40363877.13

Cash paid to and for employees 9672170.29 10332086.06

Taxes paid 45295329.10 28622025.86

Cash used in other operating

activities

262405440.61 5750799.60

Subtotal of cash used in operating

activities

326364176.23 85068788.65

Net cash generated from/used in

operating activities

-246611309.86 336292870.60

2. Cash flows from investing activities:

Proceeds from disinvestment 900000000.00

Return on investment 11365734.25

Net proceeds from the disposal of

fixed assets intangible assets and other

long-lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

activities

Subtotal of cash generated from

investing activities

911365734.25

Payments for the acquisition of fixed

assets intangible assets and other

long-lived assets

26150.00

Payments for investments

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing

activities

Subtotal of cash used in investing

activities

26150.00

Net cash generated from/used in

investing activities

-26150.00 911365734.25

3. Cash flows from financing activities:

Capital contributions received

Borrowings obtained

Cash generated from other financing

activities

Subtotal of cash generated from

financing activities

Repayments of borrowings

Payments for interest and dividends

Cash used in other financing

activities

Subtotal of cash used in financing

activities

Net cash generated from/used in

financing activities

4. Effect of foreign exchange rate

changes on cash and cash equivalents

5. Net increase in cash and cash

equivalents

-246637459.86 1247658604.85

Add: Cash and cash equivalents

beginning of the period

963737437.55 444486378.53

6. Cash and cash equivalents end of the

period

717099977.69 1692144983.38

II Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New

Standards Governing Revenue or Leases from 2020

□ Applicable √ Not applicable

2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New

Standards Governing Revenue or Leases from 2020

□ Applicable √ Not applicable

III Independent Auditor’s Report

Indicate by tick mark whether the financial statements above have been audited by an independent auditor.□ Yes √ No

These financial statements have not been audited by such an auditor.