China Fangda Group Co., Ltd.
2019 Q1 Report
April 2019
I Important Statement
The members of the Board and the Company guarantee that the quarterlyreport is free from any false information, misleading statement or materialomission and are jointly and severally liable for the information’s truthfulness,accuracy and integrity.
All the Directors have attended the meeting of the board meeting at whichthis report was examined.
Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the ChiefFinancial Officer, and Mr. Wu Bohua, the manager of accounting departmentdeclare: the Financial Report carried in this report is authentic and completed.
II. General Information
1. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years□ Yes √ No
This report period | Same period last year | Year-on-year change (%) | |
Turnover (yuan) | 670,452,093.70 | 650,032,997.33 | 3.14% |
Net profit attributable to shareholders of the listed company (yuan) | 69,998,533.09 | 98,377,550.44 | -28.85% |
Net profit attributable to the shareholders of the listed company and after deducting of non-recurring gain/loss (RMB) | 64,930,951.19 | 88,737,051.63 | -26.83% |
Net cash flow generated by business operation (RMB) | -296,237,735.96 | -40,623,633.07 | -629.23% |
Basic earnings per share (yuan/share) | 0.06 | 0.08 | -25.00% |
Diluted Earnings per share (yuan/share) | 0.06 | 0.08 | -25.00% |
Weighted average net income/asset ratio | 1.37% | 2.99% | Decreased by 1.62 percentage points |
End of the report period | End of last year | Year-on-year change | |
Total asset (RMB) | 10,650,592,249.67 | 10,658,854,133.73 | -0.08% |
Net profit attributable to the shareholders of the listed company (RMB) | 4,964,651,509.23 | 5,195,187,621.88 | -4.44% |
Note: The above-mentioned decrease in “net profit attributable to shareholders of the listed company” was mainly due to the factthat the Fangda Town project which had a higher gross profit during the reporting period and contributed more to the profit in theprevious year, was nearing the end of the planned sales area resulting in a decrease in operating income and profit. The Company'scurtain wall system and material industry, rail transportation equipment industry's operating income net profit have increased asfollows:
1. The real estate industry realized operating income of RMB 163,434,900 in the first quarter of 2019, a decrease of 40.60% overthe same period of the previous year; net profit of RMB 50,790,600 was reduced by RMB48,468,900 compared with the sameperiod of the previous year with a decrease of 48.83%.2. In the first quarter of 2019, the curtain wall system and materials industry realized operating income of RMB431,126,200, anincrease of 40.56% over the same period of the previous year; the net profit was RMB14,207,100, an increase of 256.28% over thesame period of last year;3. In the first quarter of 2019, the rail transit equipment industry realized operating income of RMB68,360,100, an increase of17.25% over the same period of the previous year; the net profit was RMB11,233,400, an increase of 39.19% over the same periodof the previous year.
Total stock equity on the trading day before disclosure:
Total number of shares on the trading day before disclosure (in share) | 1,123,384,189 |
Overall diluted earnings per share calculated using the latest number of shares (RMB/share) | 0.0623 |
Accidental gain/loss item and amount√ Applicable □ Inapplicable
In RMB
Item | Amount from beginning of the year to the end of the report period | Notes |
Non-current asset disposal gain/loss (including the write-off part for which assets impairment provision is made) | -18,130.72 | |
Subsidies accounted into the current income account (except the government subsidy closely related to the enterprise’s business and based on unified national standard quota) | 2,764,802.92 | |
Capital using expense charged to non-financial enterprises and accounted into the current income account | 63,333.33 | |
Gain from entrusted investment or assets management | 2,771,670.18 | |
Other non-business income and expenditures other than the above | 604,262.22 | |
Less: Influenced amount of income tax | 1,118,356.03 | |
Total | 5,067,581.90 | -- |
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regulargain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.□ Applicable √ InapplicableNo circumstance that should be defined as recurrent profit and loss according to Explanation Announcement of InformationDisclosure No. 1 - Non-recurring gain/loss occurs in the report period.
2. Total number of shareholders and shareholding of top 10 shareholders by the end of thereport period
1. Ordinary shareholders, preference shareholders with resumed voting rights and top 10 shareholders
In share
Number of shareholders of common shares at the end of the report period | 75,069 | Number of shareholders of preferred stocks of which voting rights recovered in the report period (if any) | 0 |
Top 10 Shareholders |
Shareholder | Nature of shareholder | Shareholding percentage | Number of shares | Conditional shares | Pledging or freezing | |
Share status | Amount | |||||
Shenzhen Banglin Technologies Development Co., Ltd. | Domestic non-state legal person | 10.08% | 113,202,154 | 0 | Pledged | 32,860,000 |
Shengjiu Investment Ltd. | Foreign legal person | 8.36% | 93,875,638 | 0 | ||
Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | Domestic non-state legal person | 2.38% | 26,791,488 | 0 | ||
Fang Wei | Domestic natural person | 1.06% | 11,933,370 | 0 | ||
SUN HUNG KAI INVESTMENT SERVICES LTD | Foreign legal person | 0.91% | 10,175,518 | 0 | ||
VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.71% | 7,946,483 | 0 | ||
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | Foreign legal person | 0.54% | 6,108,732 | 0 | ||
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Foreign legal person | 0.54% | 6,025,958 | 0 | ||
Qu Chunlin | Domestic natural person | 0.36% | 4,038,961 | 0 | ||
First Shanghai Securities Limited | Foreign legal person | 0.36% | 4,001,704 | 0 |
Top 10 holders of unconditional shares | |||
Shareholder | Amount of shares without sales restriction | Category of shares | |
Category of shares | Amount | ||
Shenzhen Banglin Technologies Development Co., Ltd. | 113,202,154 | RMB common shares | 113,202,154 |
Shengjiu Investment Ltd. | 93,875,638 | Foreign shares listed in domestic exchanges | 93,875,638 |
Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | 26,791,488 | RMB common shares | 26,791,488 |
Fang Wei | 11,933,370 | RMB common shares | 11,933,370 |
SUN HUNG KAI INVESTMENT SERVICES LTD | 10,175,518 | Foreign shares listed in domestic exchanges | 10,175,518 |
VANGUARD EMERGING MARKETS STOCK INDEX FUND | 7,946,483 | Foreign shares listed in domestic exchanges | 7,946,483 |
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | 6,108,732 | Foreign shares listed in domestic exchanges | 6,108,732 |
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 6,025,958 | Foreign shares listed in domestic exchanges | 6,025,958 |
Qu Chunlin | 4,038,961 | RMB common shares | 4,038,961 |
First Shanghai Securities Limited | 4,001,704 | Foreign shares listed in domestic exchanges | 4,001,704 |
Notes to top ten shareholder relationship or "action in concert" | Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise are related parties. The Company is not notified of other action-in-concert or related parties among the other holders of current shares. | ||
Top-10 common share shareholders participating in margin trade (if any) | None |
Agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional commonshares in the report period
□ Yes √ NoNo agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional commonshares in the report period
2. Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end ofthe report period
□ Applicable √ Inapplicable
III Significant Events
1. Major changes in accounting items and financial data in the report period and reasons
√ Applicable □ Inapplicable
Item | March 31, 2019 | December 31, 2019 | Change | Cause of change |
Other current assets | 79,973,007.98 | 51,698,111.14 | 54.69% | Mainly due to the increase in the input tax to be verified and to be deducted |
Short-term loans | 700,000,000.00 | 208,000,000.00 | 236.54% | Mainly due to increase in bank borrowings |
Prepayment received | 174,471,020.46 | 278,577,848.54 | -37.37% | Mainly due to income recognized in this period |
Employees’ wage payable | 20,937,500.20 | 44,513,062.17 | -52.96% | Annual bonus paid |
Non-current liabilities due in 1 year | 450,000,000.00 | 200,000,000.00 | 125.00% | Reclassified long-term loans due within 1 year |
Surplus reserves | 54,042,195.07 | 120,475,221.40 | -55.14% | Mainly due to the repurchase of B shares in the current period |
Item | Amount of the Current Term | Last period | Change | Cause of change |
Taxes and surcharges | 33,241,693.55 | 57,107,989.44 | -41.79% | Mainly due to the decrease in taxes on real estate sales business |
Administrative expense | 48,521,803.12 | 37,182,042.44 | 30.50% | Mainly due to the increase in operating income of the Company's curtain wall system and materials and subway screen door business, resulting in an increase in related expenses |
Income tax expenses | 19,513,176.48 | 33,501,097.89 | -41.75% | Mainly due to the decrease in profits which is due to the decrease in income tax |
Cash flow generated by business operations, net | -296,237,735.96 | -40,623,633.07 | -629.23% | Mainly due to the decrease in collection of real estate sales and the decrease in the receipt of margins received |
Net cash flow generated by financing activities | 292,596,452.25 | 29,253,596.52 | 900.21% | Mainly due to the increase in bank loans and the payment of cash dividends in the current period. |
2. Progress of key issues and its impacts and solutions
√ Applicable □ Inapplicable(1) Property project development progress:
1. Shenzhen Fangda Town Project: In the first quarter of 2019, the Fangda Town project achieved a sales area of 2,540.9 squaremeters with a cumulative sales area of 84,951.4 square meters; the commercial investment signing rate was 91%; as of the end of the
first quarter of 2019, the total rented area of building1# is 12,462.44 square meters and the occupancy rate is 17.18%.
2. Nanchang Fenghuangzhou Project: Construction started in May 2018. The project covers an area of about 17,000 squaremeters with a total construction area of about 93,000 square meters. The total construction area is 66,000 square meters coveringcommercial hotel and apartment buildings. The office building is an integrated commercial complex. As of the end of the firstquarter of 2019, the two-story basement in the main project has been basically completed. The project plans to start pre-sale in thesecond half of 2019 and to complete the acceptance in the first half of 2020. At present, the project construction is progressing inaccordance with the expected engineering nodes.
3. Shenzhen Fangda Bangshen Industrial Park Project: The project is located in Fuyong, Bao'an District, Shenzhen. It covers anarea of 20,714.9 square meters and is currently an industrial plant. The project has begun to declare the project. As of the end of thefirst quarter of 2019 the project is still in the stage of approval.
4. Shenzhen Henggang Dakanghe renewal project: At the end of September 2018, Shenzhen Zhongrong Litai Investment Co.,Ltd., a holding subsidiary of Fangda Real Estate Co., Ltd., a wholly-owned subsidiary of the Company, and Shenzhen HenggangDakang Co., Ltd. and Shangzhong branch of the Shenzhen Henggang Dakang Co., Ltd. signed a letter of intent for the cooperation ofthe Dakanghe urban renewal project. The project is located in Dakang Village, Yuanshan Sub-district, Longgang District, Shenzhen,north to Yanhe Road, south to Shanzixia Road, west to Xiaokang Road, and east to Yuying Street. The area to be demolished is about80,000 square meters. The project is mainly for residential functions and is subject to government approval. The project work iscurrently being actively promoted.(2) Progress in the implementation of share repurchase√ Applicable □ Inapplicable
The Company held the 10th meeting of the 8th Board of Directors and the first extraordinary shareholders meeting of 2018 onSeptember 10 2018 and September 27 2018 respectively and reviewed and approved the repurchase of some domestically listedforeign shares (B shares). From December 19 2018 to January 3 2019, the Company repurchased 32,097,497 B shares throughcentralized bidding. On January 11, 2019, the Company handled the cancellation procedures of the above repurchased shares atChina Securities Depository and Clearing Co. Ltd. Shenzhen Branch. The number of shares repurchased and canceled in thisrepurchase accounted for 2.78% of the total share capital of the Company before the repurchase and cancellation and the highestrepurchase price was HK$3.58 per share and the lowest price was HK$3.24 per share. The actual repayment of the repurchasedshares was HK$113,012,632.21 (including transaction fees) and the repurchase has been completed.
(3) Progress in the implementation of the reduction of shareholding shares by means of centralized bidding□ Applicable √ Inapplicable
3. Commitments that have not been fulfilled by actual controller, shareholders, related parties,acquirers of the Company
□ Applicable √ InapplicableThere is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company
4. Forecast of operating performance between January and June in 2019
Warning and reasons of possible net loss or substantial change from the last period between the beginning of the year and the end ofthe next report period□ Applicable √ Inapplicable
5. Securities investment
□ Applicable √ InapplicableThe Company made no investment in securities in the report period
6. Derivative investment
√ Applicable □ Inapplicable
In RMB10,000
Derivative investment operator | Relationship | Related transaction | Type | Initial amount | Start date | End date | Initial investment amount | Amount in this period | Amount sold in this period | Impairment provision (if any) | Closing investment amount | Proportion of closing investment amount in the closing net assets in the report period | Actual gain/loss in the report period |
Shanghai Futures Exchange | Non-affiliated party | No | Shanghai aluminum | 2,535.76 | July 13, 2018 | December 10, 2019 | 2,535.76 | 8,659.52 | 567.74 | 10,627.53 | 2.14% | 28.88 | |
Total | 2,535.76 | -- | -- | 2,535.76 | 8,659.52 | 567.74 | 10,627.53 | 2.14% | 28.88 | ||||
Capital source | Self-owned fund | ||||||||||||
Lawsuit (if any) | None | ||||||||||||
Disclosure date of derivative investment approval by the Board of Directors (if any) | October 31, 2017 | ||||||||||||
Disclosure date of derivative investment approval by the Shareholders’ Meeting (if any) | |||||||||||||
Risk analysis and control measures for the derivative holding in the report period (including without limitation market, liquidity, credit, operation and legal risks) | To prevent the risk of fluctuation of raw material prices, the Company adopted the aluminum futures exchanged at the domestic futures exchange to provide hedging for aluminum as a raw material for the Company. The Company has set up and implemented the Provincial Regulations on China Fangda Group Domestic Futures Hedging to prevent risks. |
Changes in the market price or fair value of the derivative in the report period, the analysis of the derivative’s fair value should disclose the method used and related assumptions and parameters. | Fair value of derivatives are measured at open prices in the futures market |
Material changes in the accounting policies and rules related to the derivative in the report period compared to last period | None |
Opinions of independent directors on the Company’s derivative investment and risk controlling | None |
7. Reception of investigations, communications, or interviews in the reporting period
√ Applicable □ Inapplicable
Time/date | Way | Visitor | Disclosure of information |
During the reporting period | Telephone communication | Individual | Repurchase of B-shares, production and operation conditions, future development |
8. Incompliant external guarantee
□ Applicable √ InapplicableThe Company made no incompliant external guarantee in the report period.
9. Non-operating capital use by the controlling shareholder or related parties in the reportingterm
□ Applicable √ InapplicableThe controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report period.
IV Financial Statements
1. Financial statements
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
March 31, 2019
In RMB
Item | March 31, 2019 | December 31, 2018 |
Current asset: | ||
Monetary capital | 1,339,642,022.35 | 1,389,062,083.76 |
Settlement provision | ||
Outgoing call loan | ||
Transactional financial assets | ||
Financial assets measured at fair value with variations accounted into current income account | ||
Derivative financial assets | ||
Receivable note and accounts receivable | 2,060,730,171.91 | 2,060,214,724.69 |
Including: receivable notes | 104,429,526.36 | 140,139,692.84 |
Account receivable | 1,956,300,645.55 | 1,920,075,031.85 |
Prepayment | 43,610,238.60 | 46,454,844.74 |
Insurance receivable | ||
Reinsurance receivable | ||
Provisions of Reinsurance contracts receivable | ||
Other receivables | 174,747,902.46 | 139,990,188.26 |
Including: interest receivable | 63,333.33 | |
Dividend receivable | ||
Repurchasing of financial assets | ||
Inventory | 641,842,902.19 | 651,405,832.29 |
Contract assets | ||
Assets held for sales |
Non-current assets due in 1 year | ||
Other current assets | 79,973,007.98 | 51,698,111.14 |
Total current assets | 4,340,546,245.49 | 4,338,825,784.88 |
Non-current assets: | ||
Loan and advancement provided | ||
Debt investment | ||
Sellable financial assets | 21,674,008.23 | |
Other debt investment | ||
Investment held until mature | ||
Long-term receivable | ||
Long-term share equity investment | 69,575,093.68 | 70,105,657.88 |
Investment in other equity tools | 21,674,008.23 | |
Other non-current financial assets | ||
Investment real estate | 5,261,170,385.58 | 5,256,442,406.63 |
Fixed assets | 436,213,822.62 | 455,274,241.83 |
Construction in process | 62,043,689.87 | 58,269,452.72 |
Productive biological assets | ||
Gas & petrol | ||
Use right assets | ||
Intangible assets | 79,763,381.64 | 80,313,240.67 |
R&D expense | ||
Goodwill | ||
Long-term amortizable expenses | 2,589,588.63 | 2,114,331.46 |
Deferred income tax assets | 352,819,194.26 | 356,474,925.76 |
Other non-current assets | 24,196,839.67 | 19,360,083.67 |
Total of non-current assets | 6,310,046,004.18 | 6,320,028,348.85 |
Total of assets | 10,650,592,249.67 | 10,658,854,133.73 |
Current liabilities | ||
Short-term loans | 700,000,000.00 | 208,000,000.00 |
Loans from Central Bank | ||
Call loan received | ||
Transactional financial liabilities | ||
Financial liabilities measured at fair value with variations accounted into current income account |
Derivative financial liabilities | 596,100.00 | 1,625,725.00 |
Payable notes and accounts | 1,373,704,342.44 | 1,547,495,316.83 |
Prepayment received | 174,471,020.46 | 278,577,848.54 |
Selling of repurchased financial assets | ||
Deposit received and held for others | ||
Entrusted trading of securities | ||
Entrusted selling of securities | ||
Employees’ wage payable | 20,937,500.20 | 44,513,062.17 |
Taxes payable | 87,685,331.21 | 107,709,999.19 |
Other payables | 810,800,621.62 | 813,118,699.84 |
Including: interest payable | 2,381,447.47 | 2,098,971.44 |
Dividend payable | ||
Fees and commissions payable | ||
Reinsurance fee payable | ||
Contract liabilities | ||
Liabilities held for sales | ||
Non-current liabilities due in 1 year | 450,000,000.00 | 200,000,000.00 |
Other current liabilities | 10,362,063.92 | 9,328,682.25 |
Total current liabilities | 3,628,556,979.85 | 3,210,369,333.82 |
Non-current liabilities: | ||
Insurance contract provision | ||
Long-term loans | 993,978,153.39 | 1,193,978,153.39 |
Bond payable | ||
Including: preferred stock | ||
Perpetual bond | ||
Lease liabilities | ||
Long-term payable | ||
Long-term employees’ wage payable | ||
Anticipated liabilities | 7,762,939.83 | 6,831,162.99 |
Deferred earning | 10,274,011.31 | 10,401,161.30 |
Deferred income tax liabilities | 1,045,368,656.06 | 1,042,086,700.35 |
Other non-current liabilities | ||
Total of non-current liabilities | 2,057,383,760.59 | 2,253,297,178.03 |
Total liabilities | 5,685,940,740.44 | 5,463,666,511.85 |
Owner’s equity: | ||
Share capital | 1,123,384,189.00 | 1,155,481,686.00 |
Other equity tools | ||
Including: preferred stock | ||
Perpetual bond | ||
Capital reserves | 1,454,191.59 | 1,454,191.59 |
Less: Shares in stock | 10,831,437.66 | |
Other miscellaneous income | 3,052,044.74 | 7,382,087.59 |
Special reserves | ||
Surplus reserves | 54,042,195.07 | 120,475,221.40 |
Common risk provisions | ||
Retained profit | 3,782,718,888.83 | 3,921,225,872.96 |
Total of owner’s equity belong to the parent company | 4,964,651,509.23 | 5,195,187,621.88 |
Minor shareholders’ equity | ||
Total of owners’ equity | 4,964,651,509.23 | 5,195,187,621.88 |
Total of liabilities and owner’s interest | 10,650,592,249.67 | 10,658,854,133.73 |
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
Item | March 31, 2019 | December 31, 2018 |
Current asset: | ||
Monetary capital | 486,430,783.14 | 410,118,157.55 |
Transactional financial assets | ||
Financial assets measured at fair value with variations accounted into current income account | ||
Derivative financial assets | ||
Receivable note and accounts receivable | 200,000,000.00 | 200,471,039.12 |
Including: receivable notes | 200,000,000.00 | 200,000,000.00 |
Account receivable | 471,039.12 | |
Prepayment | 4,382,073.52 | 6,733,047.16 |
Other receivables | 1,036,391,923.93 | 822,543,653.04 |
Including: interest receivable | ||
Dividend receivable | 100,000,000.00 | 100,000,000.00 |
Inventory | ||
Contract assets | ||
Assets held for sales | ||
Non-current assets due in 1 year | ||
Other current assets | 716,922.84 | 919,388.18 |
Total current assets | 1,727,921,703.43 | 1,440,785,285.05 |
Non-current assets: | ||
Debt investment | ||
Sellable financial assets | 21,674,008.23 | |
Other debt investment | ||
Investment held until mature | ||
Long-term receivable | ||
Long-term share equity investment | 983,339,494.35 | 983,339,494.35 |
Investment in other equity tools | 21,674,008.23 | |
Other non-current financial assets | ||
Investment real estate | 309,189,866.37 | 309,189,866.37 |
Fixed assets | 53,256,576.04 | 53,784,811.23 |
Construction in process | ||
Productive biological assets | ||
Gas & petrol | ||
Use right assets | ||
Intangible assets | 2,044,566.88 | 2,112,301.97 |
R&D expense | ||
Goodwill | ||
Long-term amortizable expenses | 847,499.66 | 917,499.68 |
Deferred income tax assets | 36,267,056.09 | 34,555,598.81 |
Other non-current assets | ||
Total of non-current assets | 1,406,619,067.62 | 1,405,573,580.64 |
Total of assets | 3,134,540,771.05 | 2,846,358,865.69 |
Current liabilities | ||
Short-term loans | 500,000,000.00 | 200,000,000.00 |
Transactional financial liabilities | ||
Financial liabilities measured at fair value with variations accounted into current income account | ||
Derivative financial liabilities | ||
Payable notes and accounts | 606,941.85 | 676,941.85 |
Prepayment received | 694,791.63 | 733,274.16 |
Contract liabilities | ||
Employees’ wage payable | 992,194.04 | 2,145,763.39 |
Taxes payable | 505,047.04 | 341,004.65 |
Other payables | 507,603,551.39 | 300,006,406.51 |
Including: interest payable | 981,915.27 | 740,208.33 |
Dividend payable | ||
Liabilities held for sales | ||
Non-current liabilities due in 1 year | 200,000,000.00 | |
Other current liabilities | ||
Total current liabilities | 1,210,402,525.95 | 503,903,390.56 |
Non-current liabilities: | ||
Long-term loans | 400,000,000.00 | 500,000,000.00 |
Bond payable | ||
Including: preferred stock | ||
Perpetual bond | ||
Lease liabilities | ||
Long-term payable | ||
Long-term employees’ wage payable | ||
Anticipated liabilities | ||
Deferred earning | ||
Deferred income tax liabilities | 64,080,311.72 | 64,130,617.41 |
Other non-current liabilities | ||
Total of non-current liabilities | 464,080,311.72 | 564,130,617.41 |
Total liabilities | 1,674,482,837.67 | 1,068,034,007.97 |
Owner’s equity: | ||
Share capital | 1,123,384,189.00 | 1,155,481,686.00 |
Other equity tools | ||
Including: preferred stock |
Perpetual bond | ||
Capital reserves | 360,835.52 | 360,835.52 |
Less: Shares in stock | 10,831,437.66 | |
Other miscellaneous income | 3,590,127.88 | 8,756,553.46 |
Special reserves | ||
Surplus reserves | 54,042,195.07 | 120,475,221.40 |
Retained profit | 278,680,585.91 | 504,081,999.00 |
Total of owners’ equity | 1,460,057,933.38 | 1,778,324,857.72 |
Total of liabilities and owner’s interest | 3,134,540,771.05 | 2,846,358,865.69 |
3. Consolidated Income Statement
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
1. Total revenue | 670,452,093.70 | 650,032,997.33 |
Incl. Business income | 670,452,093.70 | 650,032,997.33 |
Interest income | ||
Insurance fee earned | ||
Fee and commission received | ||
2. Total business cost | 586,532,424.53 | 528,787,371.03 |
Incl. Business cost | 467,237,374.40 | 398,153,159.63 |
Interest expense | ||
Fee and commission paid | ||
Insurance discharge payment | ||
Net claim amount paid | ||
Net insurance policy reserves provided | ||
Insurance policy dividend paid | ||
Reinsurance expenses | ||
Taxes and surcharges | 33,241,693.55 | 57,107,989.44 |
Sales expense | 12,854,606.25 | 9,988,975.74 |
Administrative expense | 48,521,803.12 | 37,182,042.44 |
R&D cost | 4,150,525.60 | 3,638,625.75 |
Financial expenses | 24,040,788.16 | 19,744,665.08 |
Including: interest cost | 18,523,514.10 | 15,732,959.05 |
Interest income | 1,220,042.73 | 1,783,355.11 |
Asset impairment loss | 2,971,912.96 | |
Credit impairment loss | -3,514,366.55 | |
Add: other gains | 2,764,802.92 | 2,330,454.12 |
Investment gains (“-” for loss) | 2,241,105.98 | 6,728,202.21 |
Incl. Investment gains from affiliates and joint ventures | -530,564.20 | -1,547,820.36 |
Exchange gains ("-" for loss) | ||
Net open hedge gains (“-” for loss) | ||
Gains from change of fair value (“-“ for loss) | -58,700.00 | |
Investment gains ("-" for loss) | -18,130.72 | 59,007.69 |
3. Operational profit ("-" for loss) | 88,907,447.35 | 130,304,590.32 |
Plus: non-operational income | 875,385.81 | 1,641,111.57 |
Less: non-operational expenditure | 271,123.59 | 67,053.56 |
4. Gross profit ("-" for loss) | 89,511,709.57 | 131,878,648.33 |
Less: Income tax expenses | 19,513,176.48 | 33,501,097.89 |
5. Net profit ("-" for net loss) | 69,998,533.09 | 98,377,550.44 |
(1) By operating consistency | ||
1. Net profit from continuous operation ("-" for net loss) | 69,998,533.09 | 98,377,550.44 |
2. Net profit from discontinuous operation ("-" for net loss) | ||
(2) By ownership | ||
1. Net profit attributable to the owners of parent company | 69,998,533.09 | 98,377,550.44 |
2. Minor shareholders’ equity | ||
6. After-tax net amount of other misc. incomes | 836,382.73 | -6,598,862.36 |
After-tax net amount of other misc. incomes attributed to parent's owner | 836,382.73 | -6,598,862.36 |
(1) Other misc. incomes that cannot be re-classified into gain and loss | ||
1. Re-measure the change in the defined benefit plan | ||
2. Other comprehensive income that cannot be transferred to profit or loss under the |
equity method | ||
3. Fair value change of investment in other equity tools | ||
4. Fair value change of the company's credit risk | ||
5. Others | ||
(2) Other misc. incomes that will be re-classified into gain and loss | 836,382.73 | -6,598,862.36 |
1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
2. Fair value change of other debt investment | ||
3. Change in the fair value of financial asset for sale | ||
4. Gains and losses from changes in fair value of available-for-sale financial assets | ||
5. Held-to-mature investment reclassified as gain and loss in the financial assets for sales | ||
6. Other credit investment credit impairment provisions | ||
7. Cash flow hedge reserve | 1,029,625.00 | -6,514,470.00 |
8. Translation difference of foreign exchange statement | -193,242.27 | -84,392.36 |
9. Others | ||
After-tax net of other misc. income attributed to minority shareholders | ||
7. Total of misc. incomes | 70,834,915.82 | 91,778,688.08 |
Total of misc. incomes attributable to the owners of the parent company | 70,834,915.82 | 91,778,688.08 |
Total misc gains attributable to the minor shareholders | ||
8. Earnings per share: | ||
(1) Basic earnings per share | 0.06 | 0.08 |
(2) Diluted earnings per share | 0.06 | 0.08 |
Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by partiesmerged during the previous period is RMB0.00.
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
1. Turnover | 9,808,576.55 | 7,377,165.13 |
Less: Operation cost | 2,950,845.09 | 162,820.81 |
Taxes and surcharges | 323,222.03 | 47,689.87 |
Sales expense | ||
Administrative expense | 6,952,633.68 | 5,079,218.61 |
R&D cost | ||
Financial expenses | 8,008,968.34 | 2,247,754.36 |
Including: interest cost | 6,297,956.94 | 3,047,141.01 |
Interest income | 241,185.83 | 797,849.60 |
Asset impairment loss | -114.99 | |
Credit impairment loss | -4,480.08 | |
Add: other gains | 200,000.00 | 100,000.00 |
Investment gains (“-” for loss) | 982,583.57 | 1,476,812.48 |
Incl. Investment gains from affiliates and joint ventures | ||
Net open hedge gains (“-” for loss) | ||
Gains from change of fair value (“-“ for loss) | ||
Investment gains ("-" for loss) | ||
2. Operational profit (“-” for loss) | -7,240,028.94 | 1,416,608.95 |
Plus: non-operational income | 8,947.57 | 2,300.00 |
Less: non-operational expenditure | 6,388.64 | |
3. Gross profit (“-” for loss) | -7,237,470.01 | 1,418,908.95 |
Less: Income tax expenses | -1,789,154.52 | 415,478.32 |
4. Net profit (“-” for net loss) | -5,448,315.49 | 1,003,430.63 |
(1) Net profit from continuous operation ("-" for net loss) | -5,448,315.49 | 1,003,430.63 |
(2) Net profit from discontinuous operation ("-" for net loss) |
5. After-tax net amount of other misc. incomes | ||
(1) Other misc. incomes that cannot be re-classified into gain and loss | ||
1. Re-measure the change in the defined benefit plan | ||
2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
3. Fair value change of investment in other equity tools | ||
4. Fair value change of the company's credit risk | ||
5. Others | ||
(2) Other misc. incomes that will be re-classified into gain and loss | ||
1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
2. Fair value change of other debt investment | ||
3. Change in the fair value of financial asset for sale | ||
4. Gains and losses from changes in fair value of available-for-sale financial assets | ||
5. Held-to-mature investment reclassified as gain and loss in the financial assets for sales | ||
6. Other credit investment credit impairment provisions | ||
7. Cash flow hedge reserve | ||
8. Translation difference of foreign exchange statement | ||
9. Others | ||
6. Total of misc. incomes | -5,448,315.49 | 1,003,430.63 |
7. Earnings per share: |
(1) Basic earnings per share | ||
(2) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
1. Net cash flow from business operations: | ||
Cash received from sales of products and providing of services | 598,615,290.91 | 663,119,560.92 |
Net increase of customer deposits and capital kept for brother company | ||
Net increase of loans from central bank | ||
Net increase of inter-bank loans from other financial bodies | ||
Cash received against original insurance contract | ||
Net cash received from reinsurance business | ||
Net increase of client deposit and investment | ||
Increase in proposal of financial assets measured at fair value with variations accounted into current income account | ||
Cash received as interest, processing fee, and commission | ||
Net increase of inter-bank fund received | ||
Net increase of repurchasing business | ||
Net cash received from trading securities | ||
Tax refunded | 901,931.07 | 422,809.19 |
Other cash received from business operation | 21,534,849.71 | 194,722,039.64 |
Sub-total of cash inflow from business | 621,052,071.69 | 858,264,409.75 |
operations | ||
Cash paid for purchasing products and services | 557,177,871.33 | 559,325,123.89 |
Net increase of client trade and advance | ||
Net increase of savings in central bank and brother company | ||
Cash paid for original contract claim | ||
Net increase in financial assets held for trading purposes | ||
Net increase in funds dismantled | ||
Cash paid for interest, processing fee and commission | ||
Cash paid for policy dividend | ||
Cash paid to and for the staff | 92,365,794.06 | 79,300,919.33 |
Taxes paid | 70,963,606.86 | 55,517,226.34 |
Other cash paid for business activities | 196,782,535.40 | 204,744,773.26 |
Sub-total of cash outflow from business operations | 917,289,807.65 | 898,888,042.82 |
Cash flow generated by business operations, net | -296,237,735.96 | -40,623,633.07 |
2. Cash flow generated by investment: | ||
Cash received from investment recovery | 973,200,000.00 | 1,873,000,000.00 |
Cash received as investment profit | 2,771,670.18 | 8,015,145.87 |
Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 13,225,019.48 | 360.00 |
Net cash received from disposal of subsidiaries or other operational units | ||
Other investment-related cash received | ||
Sub-total of cash inflow generated from investment | 989,196,689.66 | 1,881,015,505.87 |
Cash paid for construction of fixed assets, intangible assets and other | 49,192,556.62 | 21,487,326.27 |
long-term assets | ||
Cash paid as investment | 1,193,400,000.00 | 2,091,800,000.00 |
Net increase of loan against pledge | ||
Net cash paid for acquiring subsidiaries and other operational units | ||
Other cash paid for investment | ||
Subtotal of cash outflows | 1,242,592,556.62 | 2,113,287,326.27 |
Cash flow generated by investment activities, net | -253,395,866.96 | -232,271,820.40 |
3. Cash flow generated by financing activities: | ||
Cash received from investment | ||
Incl. Cash received from investment attracted by subsidiaries from minority shareholders | ||
Cash received from borrowed loans | 600,000,000.00 | 148,000,000.00 |
Cash received from bond placing | ||
Other cash received from financing activities | 39,406.61 | |
Subtotal of cash inflow from financing activities | 600,039,406.61 | 148,000,000.00 |
Cash paid to repay debts | 58,000,000.00 | 100,000,000.00 |
Cash paid as dividend, profit, or interests | 249,442,954.36 | 18,746,403.48 |
Incl. Dividend and profit paid by subsidiaries to minority shareholders | ||
Other cash paid for financing activities | ||
Subtotal of cash outflow from financing activities | 307,442,954.36 | 118,746,403.48 |
Net cash flow generated by financing activities | 292,596,452.25 | 29,253,596.52 |
4. Influence of exchange rate changes on cash and cash equivalents | -844,162.82 | -1,891,037.80 |
5. Net increase in cash and cash equivalents | -257,881,313.49 | -245,532,894.75 |
Plus: Balance of cash and cash equivalents at the beginning of term | 956,190,890.68 | 931,285,535.55 |
6. Balance of cash and cash equivalents at the end of the period | 698,309,577.19 | 685,752,640.80 |
6. Cash Flow Statement of the Parent Company
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
1. Net cash flow from business operations: | ||
Cash received from sales of products and providing of services | 7,829,887.29 | 140,521,112.40 |
Tax refunded | ||
Other cash received from business operation | 857,398,618.28 | 454,176,095.73 |
Sub-total of cash inflow from business operations | 865,228,505.57 | 594,697,208.13 |
Cash paid for purchasing products and services | 1,486,439.86 | 117,995.70 |
Cash paid to and for the staff | 5,580,350.62 | 4,310,306.35 |
Taxes paid | 802,896.19 | 1,200,412.23 |
Other cash paid for business activities | 863,556,002.15 | 725,018,532.50 |
Sub-total of cash outflow from business operations | 871,425,688.82 | 730,647,246.78 |
Cash flow generated by business operations, net | -6,197,183.25 | -135,950,038.65 |
2. Cash flow generated by investment: | ||
Cash received from investment recovery | 518,000,000.00 | 942,880,000.00 |
Cash received as investment profit | 982,583.57 | 2,496,812.48 |
Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | ||
Net cash received from disposal of subsidiaries or other operational units | ||
Other investment-related cash |
received | ||
Sub-total of cash inflow generated from investment | 518,982,583.57 | 945,376,812.48 |
Cash paid for construction of fixed assets, intangible assets and other long-term assets | 18,000.00 | 415,830.00 |
Cash paid as investment | 518,000,000.00 | 1,040,870,000.00 |
Net cash paid for acquiring subsidiaries and other operational units | ||
Other cash paid for investment | ||
Subtotal of cash outflows | 518,018,000.00 | 1,041,285,830.00 |
Cash flow generated by investment activities, net | 964,583.57 | -95,909,017.52 |
3. Cash flow generated by financing activities: | ||
Cash received from investment | ||
Cash received from borrowed loans | 400,000,000.00 | 140,000,000.00 |
Cash received from bond placing | ||
Other cash received from financing activities | 39,406.61 | |
Subtotal of cash inflow from financing activities | 400,039,406.61 | 140,000,000.00 |
Cash paid to repay debts | ||
Cash paid as dividend, profit, or interests | 230,221,221.83 | 2,060,208.34 |
Other cash paid for financing activities | ||
Subtotal of cash outflow from financing activities | 230,221,221.83 | 2,060,208.34 |
Net cash flow generated by financing activities | 169,818,184.78 | 137,939,791.66 |
4. Influence of exchange rate changes on cash and cash equivalents | 576.24 | |
5. Net increase in cash and cash equivalents | 164,586,161.34 | -93,919,264.51 |
Plus: Balance of cash and cash equivalents at the beginning of term | 281,594,621.80 | 310,049,329.68 |
6. Balance of cash and cash equivalents at the end of the period | 446,180,783.14 | 216,130,065.17 |
II. Financial Statement Adjustment
1. The first implementation of the new financial instruments guidelines, new income standards, new leasestandards, adjustments the first implementation of the financial statements at the beginning of the year
√ Applicable □ InapplicableConsolidated Balance Sheet
In RMB
Item | December 31, 2018 | January 1, 2019 | Adjustment |
Current asset: | |||
Monetary capital | 1,389,062,083.76 | 1,389,062,083.76 | |
Receivable note and accounts receivable | 2,060,214,724.69 | 2,072,905,381.88 | 12,690,657.19 |
Including: receivable notes | 140,139,692.84 | 140,139,692.84 | |
Account receivable | 1,920,075,031.85 | 1,932,765,689.04 | 12,690,657.19 |
Prepayment | 46,454,844.74 | 46,454,844.74 | |
Other receivables | 139,990,188.26 | 142,135,200.55 | 2,145,012.29 |
Inventory | 651,405,832.29 | 651,405,832.29 | |
Other current assets | 51,698,111.14 | 51,698,111.14 | |
Total current assets | 4,338,825,784.88 | 4,353,661,454.36 | 14,835,669.48 |
Non-current assets: | |||
Sellable financial assets | 21,674,008.23 | Inapplicable | -21,674,008.23 |
Long-term share equity investment | 70,105,657.88 | 70,105,657.88 | |
Investment in other equity tools | Inapplicable | 21,674,008.23 | 21,674,008.23 |
Investment real estate | 5,256,442,406.63 | 5,256,442,406.63 | |
Fixed assets | 455,274,241.83 | 455,274,241.83 | |
Construction in process | 58,269,452.72 | 58,269,452.72 | |
Intangible assets | 80,313,240.67 | 80,313,240.67 | |
Long-term amortizable expenses | 2,114,331.46 | 2,114,331.46 | |
Deferred income tax | 356,474,925.76 | 353,169,011.31 | -3,305,914.45 |
assets | |||
Other non-current assets | 19,360,083.67 | 19,360,083.67 | |
Total of non-current assets | 6,320,028,348.85 | 6,316,722,434.40 | -3,305,914.45 |
Total of assets | 10,658,854,133.73 | 10,670,383,888.76 | 11,529,755.03 |
Current liabilities | |||
Short-term loans | 208,000,000.00 | 208,000,000.00 | |
Derivative financial liabilities | 1,625,725.00 | 1,625,725.00 | |
Payable notes and accounts | 1,547,495,316.83 | 1,547,495,316.83 | |
Prepayment received | 278,577,848.54 | 278,577,848.54 | |
Employees’ wage payable | 44,513,062.17 | 44,513,062.17 | |
Taxes payable | 107,709,999.19 | 107,709,999.19 | |
Other payables | 813,118,699.84 | 813,118,699.84 | |
Including: interest payable | 2,098,971.44 | 2,098,971.44 | |
Non-current liabilities due in 1 year | 200,000,000.00 | 200,000,000.00 | |
Other current liabilities | 9,328,682.25 | 9,328,682.25 | |
Total current liabilities | 3,210,369,333.82 | 3,210,369,333.82 | |
Non-current liabilities: | |||
Long-term loans | 1,193,978,153.39 | 1,193,978,153.39 | |
Anticipated liabilities | 6,831,162.99 | 6,831,162.99 | |
Deferred earning | 10,401,161.30 | 10,401,161.30 | |
Deferred income tax liabilities | 1,042,086,700.35 | 1,042,086,700.35 | |
Total of non-current liabilities | 2,253,297,178.03 | 2,253,297,178.03 | |
Total liabilities | 5,463,666,511.85 | 5,463,666,511.85 | |
Owner’s equity: | |||
Share capital | 1,155,481,686.00 | 1,155,481,686.00 | |
Capital reserves | 1,454,191.59 | 1,454,191.59 | |
Less: Shares in stock | 10,831,437.66 | 10,831,437.66 | |
Other miscellaneous income | 7,382,087.59 | 2,215,662.01 | -5,166,425.58 |
Surplus reserves | 120,475,221.40 | 121,000,081.43 | 524,860.03 |
Retained profit | 3,921,225,872.96 | 3,937,397,193.54 | 16,171,320.58 |
Total of owner’s equity belong to the parent company | 5,195,187,621.88 | 5,206,717,376.91 | 11,529,755.03 |
Total of owners’ equity | 5,195,187,621.88 | 5,206,717,376.91 | 11,529,755.03 |
Total of liabilities and owner’s interest | 10,658,854,133.73 | 10,670,383,888.76 | 11,529,755.03 |
About the adjustment
In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets","Accounting Standards for Business Enterprises No. 24 - Hedge Accounting", "Accounting Standards for Business Enterprises No.37 - Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards") andrequires enterprises listed in China to implement the above accounting standards from January 1, 2019.
In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrumentinvestments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assetsmeasured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At thesame time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the newfinancial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period whenpreparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or othercomprehensive income at the beginning of 2019.Balance Sheet of the Parent Company
In RMB
Item | December 31, 2018 | January 1, 2019 | Adjustment |
Current asset: | |||
Monetary capital | 410,118,157.55 | 410,118,157.55 | |
Receivable note and accounts receivable | 200,471,039.12 | 200,479,634.37 | 8,595.25 |
Including: receivable notes | 200,000,000.00 | 200,000,000.00 | |
Account receivable | 471,039.12 | 479,634.37 | 8,595.25 |
Prepayment | 6,733,047.16 | 6,733,047.16 | |
Other receivables | 822,543,653.04 | 822,644,623.99 | 100,970.95 |
Dividend receivable | 100,000,000.00 | 100,000,000.00 | |
Other current assets | 919,388.18 | 919,388.18 | |
Total current assets | 1,440,785,285.05 | 1,440,894,851.25 | 109,566.20 |
Non-current assets: |
Sellable financial assets | 21,674,008.23 | Inapplicable | -21,674,008.23 |
Long-term share equity investment | 983,339,494.35 | 983,339,494.35 | |
Investment in other equity tools | Inapplicable | 21,674,008.23 | 21,674,008.23 |
Investment real estate | 309,189,866.37 | 309,189,866.37 | |
Fixed assets | 53,784,811.23 | 53,784,811.23 | |
Intangible assets | 2,112,301.97 | 2,112,301.97 | |
Long-term amortizable expenses | 917,499.68 | 917,499.68 | |
Deferred income tax assets | 34,555,598.81 | 34,528,207.26 | -27,391.55 |
Total of non-current assets | 1,405,573,580.64 | 1,405,546,189.09 | -27,391.55 |
Total of assets | 2,846,358,865.69 | 2,846,441,040.34 | 82,174.65 |
Current liabilities | |||
Short-term loans | 200,000,000.00 | 200,000,000.00 | |
Payable notes and accounts | 676,941.85 | 676,941.85 | |
Prepayment received | 733,274.16 | 733,274.16 | |
Employees’ wage payable | 2,145,763.39 | 2,145,763.39 | |
Taxes payable | 341,004.65 | 341,004.65 | |
Other payables | 300,006,406.51 | 300,006,406.51 | |
Including: interest payable | 740,208.33 | 740,208.33 | |
Total current liabilities | 503,903,390.56 | 503,903,390.56 | |
Non-current liabilities: | |||
Long-term loans | 500,000,000.00 | 500,000,000.00 | |
Deferred income tax liabilities | 64,130,617.41 | 64,130,617.41 | |
Total of non-current liabilities | 564,130,617.41 | 564,130,617.41 | |
Total liabilities | 1,068,034,007.97 | 1,068,034,007.97 | |
Owner’s equity: | |||
Share capital | 1,155,481,686.00 | 1,155,481,686.00 | |
Capital reserves | 360,835.52 | 360,835.52 |
Less: Shares in stock | 10,831,437.66 | 10,831,437.66 | |
Other miscellaneous income | 8,756,553.46 | 3,590,127.88 | -5,166,425.58 |
Surplus reserves | 120,475,221.40 | 121,000,081.43 | 524,860.03 |
Retained profit | 504,081,999.00 | 508,805,739.20 | 4,723,740.20 |
Total of owners’ equity | 1,778,324,857.72 | 1,778,407,032.37 | 82,174.65 |
Total of liabilities and owner’s interest | 2,846,358,865.69 | 2,846,441,040.34 | 82,174.65 |
About the adjustment
In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets","Accounting Standards for Business Enterprises No. 24 - Hedge Accounting", "Accounting Standards for Business Enterprises No.37 - Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards") andrequires enterprises listed in China to implement the above accounting standards from January 1, 2019.
In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrumentinvestments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assetsmeasured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At thesame time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the newfinancial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period whenpreparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or othercomprehensive income at the beginning of 2019.
2. Description of the first implementation of the new financial instrument criteria, new lease standardretrospective adjustment of the previous period comparison data
□ Applicable √ Inapplicable
3. Auditor’s Report
Whether the Q1 report is audited□ Yes √ NoThe Q2 Report is not audited.
China Fangda Group Co., Ltd.
Legal representative: Xiong JianmingApril 23, 2019