Shenzhen Zhongheng Huafa Co., Ltd.
THE THIRD QUARTERLY REPORT FOR 2018
October 2018
Section I. Important Notes
Board of Directors and the Supervisory Committee of Shenzhen ZhonghengHuafa Co., Ltd. (hereinafter referred to as the Company) and its directors,supervisors and senior executives hereby confirm that there are no any fictitiousstatements, 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 of the Company are attended the Meeting for quarterly reportdeliberation.
Principal of the Company Li Zhongqiu, Person in Charge of Accounting WorksYang Bin and Person in Charge of Accounting Organ (Accounting Officer) WuAijie hereby confirm that the Financial Report of the Third Quarterly Report isauthentic, accurate and complete.
Section II Basic information of Company
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
| Current period-end | Period-end of last year | Increase/decrease | ||||
| Total assets (RMB) | 610,025,600.37 | 629,762,731.38 | -3.13% | |||
| Net assets attributable to shareholders of listed company (RMB) | 321,170,473.10 | 320,672,978.02 | 0.16% | |||
| Current period | Increase/decrease in comparison with same period of last year | Year-begin to end of the Period | Increase/decrease in comparison with year-begin to Period-end of last year | |||
| Operating revenue (RMB) | 148,975,383.05 | -36.03% | 489,960,226.29 | -27.13% | ||
| Net profit attributable to shareholders of the listed company (RMB) | -2,500,879.50 | -39.09% | 497,495.08 | 42.80% | ||
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | -3,406,233.82 | -0.89% | -1,352,766.80 | -28.76% | ||
| Net cash flow arising from operating activities (RMB) | -- | -- | -54,036,421.68 | -240.71% | ||
| Basic earnings per share (RMB/Share) | -0.0088 | 37.50% | 0.0018 | 50.00% | ||
| Diluted earnings per share (RMB/Share) | -0.0088 | 37.50% | 0.0018 | 50.00% | ||
| Weighted average ROE | -0.78% | -0.22% | 0.16% | 0.05% | ||
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
| Item | Amount from year-begin to end of the Period | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -151,337.27 |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 1,606,800.00 | |
| Gains and losses from assets under trusted investment or management | 293,005.35 | |
| Other non-operating income and expenditure except for the aforementioned items | 408,564.72 | |
| Less: impact on income tax | 306,770.92 | |
| Total | 1,850,261.88 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public --- Extraordinary Profit/loss.
II. Statement of the total shareholders and shares-held of top ten shareholders at end of thePeriod
1. Total number of common shareholders at the end of this report period and top ten common shareholders
In Share
| Total common stock shareholders in reporting period-end | 26,534 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | |||||
| Top ten shareholders | ||||||||
| 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 | |||||||
| Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd. | Domestic non-state-owned legal person | 41.14% | 116,489,894 | 0 | Pledged | 116,100,000 | ||
| Frozen | 116,489,894 | |||||||
| SEG (HONG KONG) CO., | Overseas legal person | 5.85% | 16,569,560 | 0 | Pledged | 0 | ||
| Frozen | 0 | |||||||
| LTD. | ||||||
| GOOD HOPE CORNER INVESTMENTS LTD | Overseas legal person | 4.49% | 12,700,000 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Changjiang Securities Brokerage (Hongkong) Co., Ltd. | Overseas legal person | 1.89% | 5,355,249 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Guoyuan Securities Brokerage (Hong Kong) Co., Ltd. | Overseas legal person | 1.36% | 3,845,117 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Li Senzhuang | Domestic nature person | 0.37% | 1,046,360 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| LI SHERYN ZHAN MING | Overseas nature person | 0.36% | 1,015,600 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Han Yaming | Domestic nature person | 0.31% | 864,200 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| BINGHUA LIU | Overseas nature person | 0.30% | 840,313 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Wu Jingmin | Domestic nature person | 0.28% | 788,152 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Particular about top ten shareholders with un-restrict shares held | ||||||
| Shareholders | Amount of un-restrict shares held | Type of shares | ||||
| Type | Amount | |||||
| Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd. | 116,489,894 | RMB ordinary shares | 116,489,894 | |||
| SEG (HONG KONG) CO., LTD. | 16,569,560 | Domestically listed foreign shares | 16,569,560 | |||
| GOOD HOPE CORNER INVESTMENTS LTD | 12,700,000 | Domestically listed foreign shares | 12,700,000 | |||
| Changjiang Securities Brokerage (Hongkong) Co., Ltd. | 5,355,249 | Domestically listed foreign | 5,355,249 | |||
| shares | |||
| Guoyuan Securities Brokerage (Hong Kong) Co., Ltd. | 3,845,117 | Domestically listed foreign shares | 3,845,117 |
| Li Senzhuang | 1,046,360 | Domestically listed foreign shares | 1,046,360 |
| LI SHERYN ZHAN MING | 1,015,600 | Domestically listed foreign shares | 1,015,600 |
| Han Yaming | 864,200 | Domestically listed foreign shares | 864,200 |
| BINGHUA LIU | 840,313 | Domestically listed foreign shares | 840,313 |
| Wu Jingmin | 788,152 | RMB ordinary shares | 788,152 |
| Explanation on associated relationship among the top ten shareholders or consistent action | Among the shareholders, Wuhan Zhongheng Group neither bears associated relationship with other shareholders, nor belongs to the consistent actor that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. The Company neither knew whether there exists associated relationship among the other tradable shareholders, nor they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. | ||
| Explanation on shareholders involving margin business about top ten common shareholders (if applicable) | N/A | ||
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreementdealing in reporting period
□Yes √ No
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing inreporting period
2. Total of shareholders with preferred stock held and the top ten shareholdings
□Applicable √Not applicable
Section III. Important events
I. Particular about major changes from items of main accounting statements and financialindexes as well as reasons
√ Applicable □Not applicable
| Item | 2018-9-30 | 2018-1-1 | Y-o-y changes | Reasons |
| Monetary Fund | 12,003,876.54 | 68,812,495.97 | -82.56% | Sales declined, and the returned money decreased |
| Advance payment | 49,172,569.56 | 943,328.01 | 5112.67% | Account repaid for mateirals in the period |
| Construction in process | 5,888,698.84 | 654,356.00 | 799.92% | Workshop construction increased in the period |
| Item | Jan. to Sept. 2018 | Jan. to Sept. 2017 | Y-o-y changes | Reasons |
| Financial expenses | 5,216,790.23 | 9,191,587.68 | -43.24% | Exchange gain increased in the period |
| Assets impairment loss | 5,941.50 | -93,425.39 | 106.36% | Bad debt of last period switch back |
| Investment income | 293,005.35 | - | Income from bank financing | |
| Assets disposal income | -151,337.27 | -31,321.94 | -383.17% | Aged procdution equipment replaced |
| Non operating income | 1,413,171.48 | 3,052,612.99 | -53.71% | At same period last year, 1.38 million yuan accrual liability reverse from Shaanxi Linghua |
| Non operating expenses | 182,806.76 | 24,775.13 | 637.86% | Fine for tax overdue |
| Income tax expense | 490,059.24 | 1,135,130.69 | -56.83% | The tax rate for high-tech enterprise declined |
| Item | Jan. to Sept. 2018 | Jan. to Sept. 2017 | Y-o-y changes | Reasons |
| Cash received from returns of investments | 119,000,000.00 | - | Financial products redemption | |
| Cash received from recovering investment | 293,005.35 | - | Income from financial products | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assts | 967,002.00 | 75,901.58 | 1174.02% | Aged procdution equipment replaced |
| Cash paid for purchasing fixed, intangible and other long-term assets | 10,633,271.22 | 5,334,290.23 | 99.34% | Investment for new workshop, and purchased prodcution equipment |
| Cash paid for investment | 119,000,000.00 | - | Purchased financial products | |
| Cash received from loans | 319,218,464.59 | 236,663,522.53 | 34.88% | Short-term loans increased in the period |
| Cash paid for debt | 315,712,397.89 | 237,673,502.22 | 32.83% | Payment of short-term loans in the period |
| payment | ||||
| Impact on cash or cash equivalent from change of foreign exchange | -117,560.33 | -858,969.48 | 86.31% | Impact by foreign exchange fluctuation in the period |
II. Progress of significant events, their influences, and analysis and explanation of theirsolutions
√ Applicable □Not applicable
(I) The Company signed Asset Exchange Contract with Wuhan Zhongheng Group on 29 April 2009 (details were referred to in theannouncement dated 30 April 2009), and pursuant to the contract, since part of the assets of the Company (namely two parcel ofindustrial lands located at Huafa road, Gongming town, Guangming new district, Shenzhen (the property certificate No. were SFDZNo.7226760 and SFDZ No.7226763, No. of parcels were A627-005 andA627-007, and the aggregate area was 48,200 sq.m) were thelands listed in the first batch of plan for 2010 Shenzhen urbanization unit planning preparation plan. For promotion of suchurbanization project and joint cooperation, the Company has not completed the transfer procedures in respect of the aforesaid land.
The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the first extraordinary general
meeting of the Board in 2015 on March 4, 2015, which considered and approved the “Motion on promoting and implementing theurban renewal project for the renewal units of Huafa area at Gongming street, Guangming new district, Shenzhen”, specified that the
Company and Wuhan Zhongheng Group shall obtain the corresponding compensatory consideration for removal from therespectively owned project plots and the respectively contributed and constructed above-ground buildings before the landdevelopment, it is estimated that the compensatory consideration obtained by the Company accounts for 50.5% of the totalconsideration and Wuhan Zhongheng Group accounts for 49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting held on September 11,
2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewal and the progress ofrelated transactions of ‘the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen’”, the company hassigned the “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area, Gong Ming Street,Guangming New District, Shenzhen”, “Contract for the cooperative venture of reconstruction project for Huafa Industrial Park, GongMing Street, Guangming New District” and “Agreement on housing acquisition and removal compensation and resettlement” withWuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “Wuhan Zhongheng Group”), ShenzhenVanke Real Estate Co., Ltd. (hereinafter referred to as “Shenzhen Vanke”), and Shenzhen Vanke Guangming Real EstateDevelopment Co., Ltd. (hereinafter referred to as “Vanke Guangming”).
On 12 September 2016, the Company received a “Notice of Arbitration No.: SHEN DP20160334” from SCIA, Shenzhen Vankeapplied for arbitration in respect of “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area,Gong Ming Street, Guangming New District, Shenzhen” against the Company and Wuhan Zhongheng Group. The arbitral court
holds hearings on 12 November 2016 and 13 May 2017. Shenzhen International Court of Arbitration (South China InternationalEconomic and Trade Arbitration Commission) has made a rule in August 2017, and the Company application for withdrawal to
Shenzhen Intermediate People’s Court in February 2018, the Court made a judgment on 16 August 2018 for dismissed theCompany’s claim. And on 29 August 2018, the Court accepted the application for enforement of Shenzhen Vanke, recently, the
controlling shareholder is actively communicate with relevant parties for solutions. Progress of the case found more in the Noticesreleased on Juchao website (www.cninfo.com.cn) dated 14 Sept. 2016, 1 Nov. 2016, 16 Nov. 2016, on 18 Feb. 2017, 24 March 2017,25 April 2017, 1 July 2017, 18 August 2017, 9 Feb. 2018, 25 Aug. 2018 and on 7 Sept. 2108 respectively.
(II) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to China Merchants SecuritiesAssets Co., Ltd. with due date of 31 December 2016. Wuhan Zhongheng Group deferred the repurchase business day to 31December 2017. And on 1 Feb. 2016, Wuhan Zhongheng Group pledge the 27,349,953 shares held to China Merchants SecuritiesAssets Co., Ltd. with due date of 31 December 2016. And also deferring the repurchase business, deadline for pledge on 31December 2017. The day for repurchase transaction is postponed until the date when lifting the pledge actually. Ended as thereporting period, the pledge has not yet been lifted and we has inquiry on controlling shareholders and issued the SuggestiveAnnouncement on Share Pledge of Controlling Shareholders. Found more in notice released on Juchao website (www.cninfo.com.cn)dated 2 Feb. 2018.
(III) Our controlling shareholder Wuhan Zhongheng Group holds 116,489,894 shares of the Company, accounting for 41.14% of total
share capital, and the above shares were judicially sealed on 27 September 2016 for creditor’s application for property preservation.
Assets frozen from 27 September 2016 to 13 September 2021. Details are set out in the announcement published at Juchaoinformation website (www.cninfo.com.cn) on 27 October 2016.
(IV) On March 21, 2014, Huafa Property and Shenzhen Jifang Investment Co., Ltd. (hereinafter referred to as "Jifang Investment")signed the "Shenzhen Housing Leasing Contract" and the "Supplemental Agreement on Leasing Contract", which were canceled onFebruary 5, 2016. As Jifang Investment occupied the site, and defaulted rent, management fee and water and electricity bills in thelong term, in order to safeguard the legitimate rights and interests, Huafa Property submitted a request for arbitration to ShenzhenArbitration Commission on March 8, 2016, and received the (2016) SZCZ No. 346 ruling paper from Shenzhen ArbitrationCommission in November 2016 which ruled Huafa Property won the lawsuit. See details on the notice published at
www.cninfo.com.cn by the Company on November 8, 2016. The sites taken by Jifang have been collected in May 2018.
(V) Increasing Commitment from Majority ShareholdesOn 20 Nov. 2017 and 28 Nov. repsectively, controlling shareholder made a committement of share increasing as holding more 2.83million B-stock and no more than 2.8 million A-stock of the Company. The commitment term is six month, latter, the controllingshareholder application for extension for another six months to fulfill the commitments. The commitment still in terms ended as thereporting period without fulfill.(VI) Director and deputy Chairman Mr. Zhang Guangliu resigned as director, deputy chairman and member of the committee of theBoard for work transfer. After nominated by second largest shareholder SEG (HONG KONG) CO., LTD., Mr. Gao Jianbo waselected as the director of 9
th
BOD, office term same as this BOD.
| Overview | Date for disclosure | Information index for temporary report disclosure |
III. Commitments that the company, shareholders, actual controller, offeror, directors,supervisors, senior management or other related parties have fulfilled during the reportingperiod and have not yet fulfilled by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management orother related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period.
IV. Estimation of operation performance for year of 2018
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or thewarning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
V. Particular about security investment
□ Applicable √ Not applicable
The Company had no security investment in Period.
VI. Trust financing
□ Applicable √ Not applicable
The Company had no trust financing in Period.
VII. Particulars about derivatives investment
□ Applicable √ Not applicable
The Company had no derivatives investment in Period.
VIII. Registration form of receiving research, communication and interview in the reportperiod
√ Applicable □Not applicable
| Date | Method | Type of investors | Basic situation index of investigation |
| 2018-07-02 | Telephone communication | Individual | N/A |
IX. Guarantee outside against the regulation
□Applicable √Not applicable
The Company has no external security against the rules in the Period.
X. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
There are no controlling shareholders' and its related party's non-business capital occupying of the listed company.
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
2018-09-30
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Current assets: | ||
| Monetary funds | 12,003,876.54 | 68,812,495.97 |
| Settlement provisions | ||
| Capital lent | ||
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial assets | ||
| Notes receivable and accounts receivable | 211,163,762.48 | 213,574,264.91 |
| Including: Notes receivable | 72,688,735.59 | 64,778,266.65 |
| Accounts receivable | 138,475,026.89 | 148,795,998.26 |
| Accounts paid in advance | 49,172,569.56 | 943,328.01 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other receivables | 3,529,002.00 | 4,335,729.72 |
| Purchase restituted finance asset | ||
| Inventories | 50,306,481.56 | 60,387,021.65 |
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 46,253.01 | 52,310.51 |
| Total current assets | 326,221,945.15 | 348,105,150.77 |
| Non-current assets: |
| Loans and payments on behalf | ||
| Finance asset available for sales | ||
| Held-to-maturity investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment property | 51,113,683.58 | 52,410,958.62 |
| Fixed assets | 176,591,396.65 | 176,477,314.08 |
| Construction in progress | 5,888,698.84 | 654,356.00 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Intangible assets | 42,188,596.40 | 43,307,316.37 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 704,367.47 | 141,666.55 |
| Deferred income tax asset | 7,316,912.28 | 6,731,168.99 |
| Other non-current asset | 1,934,800.00 | |
| Total non-current asset | 283,803,655.22 | 281,657,580.61 |
| Total assets | 610,025,600.37 | 629,762,731.38 |
| Current liabilities: | ||
| Short-term loans | 173,358,875.00 | 166,620,264.81 |
| Loan from central bank | ||
| Absorbing deposit and interbank deposit | ||
| Capital borrowed | ||
| Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Notes payable and accounts payable | 74,347,459.13 | 101,815,141.01 |
| Accounts received in advance | 267,383.24 | 278,128.18 |
| Selling financial asset of repurchase | ||
| Commission charge and commission payable | ||
| Wage payable | 4,046,925.82 | 5,083,357.93 |
| Taxes payable | 10,792,167.77 | 15,136,277.68 |
| Other accounts payable | 25,977,905.31 | 20,092,172.75 |
| Reinsurance payables | ||
| Insurance contract reserve | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Liability held for sale | ||
| Non-current liabilities due within 1 year | ||
| Other current liabilities | ||
| Total current liabilities | 288,790,716.27 | 309,025,342.36 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Projected liabilities | 64,411.00 | 64,411.00 |
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 64,411.00 | 64,411.00 |
| Total liabilities | 288,855,127.27 | 309,089,753.36 |
| Owner’s equity: | ||
| Share capital | 283,161,227.00 | 283,161,227.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 146,587,271.50 | 146,587,271.50 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 77,391,593.25 | 77,391,593.25 |
| Provision of general risk | ||
| Retained profit | -185,969,618.65 | -186,467,113.73 |
| Total owner’s equity attributable to parent company | 321,170,473.10 | 320,672,978.02 |
| Minority interests | ||
| Total owner’s equity | 321,170,473.10 | 320,672,978.02 |
| Total liabilities and owner’s equity | 610,025,600.37 | 629,762,731.38 |
Legal representative: Li ZhongqiuPerson in charge of accounting works: Yang BinPerson in charge of accounting institution: Wu Aijie
2. Balance Sheet of Parent Company
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Current assets: | ||
| Monetary funds | 5,448,418.01 | 25,181,764.87 |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial assets | ||
| Notes receivable and accounts receivable | ||
| Including: Notes receivable | ||
| Accounts receivable | ||
| Account paid in advance | 153,050.00 | |
| Other receivables | 101,249,172.05 | 99,922,143.84 |
| Inventories | 14,806.50 | 14,806.50 |
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | ||
| Total current assets | 106,865,446.56 | 125,118,715.21 |
| Non-current assets: | ||
| Available-for-sale financial assets | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 186,608,900.00 | 186,608,900.00 |
| Investment property | 26,676,804.36 | 27,583,299.22 |
| Fixed assets | 96,333,932.87 | 99,678,839.27 |
| Construction in progress | 1,172,756.00 | 654,356.00 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Intangible assets | 4,734,891.39 | 4,843,600.68 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 104,166.52 | 141,666.55 |
| Deferred income tax assets | 8,106,508.57 | 7,519,546.71 |
| Other non-current assets | ||
| Total non-current assets | 323,737,959.71 | 327,030,208.43 |
| Total assets | 430,603,406.27 | 452,148,923.64 |
| Current liabilities: | ||
| Short-term borrowings | 104,000,000.00 | 120,000,000.00 |
| Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Notes payable and accounts payable | 9,740,367.33 | 10,745,840.16 |
| Accounts received in advance | 48,000.96 | 67,210.00 |
| Wage payable | 815,885.20 | 1,039,196.20 |
| Taxes payable | 7,652,654.65 | 9,305,468.70 |
| Other accounts payable | 15,783,051.78 | 14,339,551.78 |
| Liability held for sale | ||
| Non-current liabilities due within 1 year | ||
| Other current liabilities | ||
| Total current liabilities | 138,039,959.92 | 155,497,266.84 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Projected liabilities | 64,411.00 | 64,411.00 |
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 64,411.00 | 64,411.00 |
| Total liabilities | 138,104,370.92 | 155,561,677.84 |
| Owners’ equity: | ||
| Share capita | 283,161,227.00 | 283,161,227.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 146,587,271.50 | 146,587,271.50 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus reserve | 77,391,593.25 | 77,391,593.25 |
| Retained profit | -214,641,056.40 | -210,552,845.95 |
| Total owner’s equity | 292,499,035.35 | 296,587,245.80 |
| Total liabilities and owner’s equity | 430,603,406.27 | 452,148,923.64 |
3. Consolidated Profit Statement (the period)
In RMB
| Item | Current Period | Last Period |
| I. Total operating income | 148,975,383.05 | 232,880,839.08 |
| Including: Operating income | 148,975,383.05 | 232,880,839.08 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 152,547,071.49 | 236,371,692.83 |
| Including: Operating cost | 137,929,089.05 | 212,098,026.49 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value |
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Operating tax and extras | 874,827.13 | 1,009,748.31 |
| Sales expenses | 3,610,591.52 | 3,066,524.55 |
| Administration expenses | 10,353,738.68 | 14,587,407.58 |
| R&D expenses | ||
| Financial expenses | -230,279.99 | 4,276,697.22 |
| Including: Interest expenses | 3,060,716.74 | 3,541,921.60 |
| Interest income | -124,684.95 | -794,663.73 |
| Losses of devaluation of asset | ||
| Add: other income | 785,000.00 | |
| Investment income (Loss is listed with “-”) | 47,326.25 | |
| Including: Investment income on affiliated company and joint venture | ||
| Changing income of fair value(Loss is listed with “-”) | ||
| Exchange income (Loss is listed with “-”) | ||
| Income from assets disposal (Loss is listed with “-”) | -45,557.91 | 2,000.00 |
| III. Operating profit (Loss is listed with “-”) | -2,784,920.10 | -3,488,853.75 |
| Add: Non-operating income | 320,268.43 | 2,126,879.23 |
| Less: Non-operating expense | 10,000.00 | 24,724.25 |
| IV. Total Profit (Loss is listed with “-”) | -2,474,651.67 | -1,386,698.77 |
| Less: Income tax expense | 26,227.83 | 411,383.78 |
| V. Net profit (Net loss is listed with “-”) | -2,500,879.50 | -1,798,082.55 |
| (i) net profit from continuous operation (Net loss is listed with “-”) | -2,500,879.50 | -1,798,082.55 |
| (ii) net profit from discontinued |
| operation (Net loss is listed with “-”) | ||
| Net profit attributable to owner’s of parent company | -2,500,879.50 | -1,798,082.55 |
| Minority shareholders’ gains and losses | ||
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
| 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | ||
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments |
| 5. Translation differences arising on translation of foreign currency financial statements | ||
| 6. Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -2,500,879.50 | -1,798,082.55 |
| Total comprehensive income attributable to owners of parent Company | -2,500,879.50 | -1,798,082.55 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | -0.0088 | -0.0064 |
| (ii) Diluted earnings per share | -0.0088 | -0.0064 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, andrealized 0 Yuan at last period for combined partyLegal representative: Li ZhongqiuPerson in charge of accounting works: Yang BinPerson in charge of accounting institution: Wu Aijie
4. Profit Statement of Parent Company (the period)
In RMB
| Item | Current Period | Last Period |
| I. Operating income | 7,401,531.71 | 9,405,098.50 |
| Less: Operating cost | 1,795,342.70 | 2,147,630.38 |
| Operating tax and extras | 267,744.93 | 706,427.28 |
| Sales expenses | 0.00 | |
| Administration expenses | 5,251,598.46 | 6,986,976.11 |
| R&D expenses | ||
| Financial expenses | 2,318,899.00 | -2,384,380.36 |
| Including: Interest expenses | 2,302,672.47 | -2,377,134.62 |
| Interest income | -2,645.81 | -7,365.50 |
| Losses of devaluation of asset | 0.00 | |
| Add: other income | ||
| Investment income (Loss is | 0.00 |
| listed with “-”) | ||
| Including: Investment income on affiliated company and joint venture | ||
| Changing income of fair value(Loss is listed with “-”) | ||
| Income from assets disposal (Loss is listed with “-”) | -26,592.13 | |
| II. Operating profit (Loss is listed with “-”) | -2,258,645.51 | 1,948,445.09 |
| Add: Non-operating income | 1,358,376.15 | |
| Less: Non-operating expense | -18,873.12 | |
| III. Total Profit (Loss is listed with “-”) | -2,258,645.51 | 3,325,694.36 |
| Less: Income tax expense | -14,661.37 | 1,515,349.97 |
| IV. Net profit (Net loss is listed with “-”) | -2,243,984.14 | 1,810,344.39 |
| (i) net profit from continuous operation (Net loss is listed with “-”) | -2,243,984.14 | 1,810,344.39 |
| (ii) net profit from discontinued operation (Net loss is listed with “-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
| 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1. Share of the other |
| comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | ||
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | ||
| 5. Translation differences arising on translation of foreign currency financial statements | ||
| 6. Other | ||
| VI. Total comprehensive income | -2,243,984.14 | 1,810,344.39 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | -0.0079 | 0.0064 |
| (ii) Diluted earnings per share | -0.0079 | 0.0064 |
5. Consolidated Profit Statement (form the year-begin to the period-end)
In RMB
| Item | Current Period | Last Period |
| I. Total operating income | 489,960,226.29 | 672,360,983.25 |
| Including: Operating income | 489,960,226.29 | 672,360,983.25 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 491,129,704.77 | 673,873,979.03 |
| Including: Operating cost | 440,512,068.49 | 611,011,951.57 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value |
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Operating tax and extras | 2,587,120.52 | 3,327,635.76 |
| Sales expenses | 12,053,059.93 | 11,762,865.09 |
| Administration expenses | 22,964,669.93 | 29,493,139.61 |
| R&D expenses | 7,790,054.17 | 9,180,224.71 |
| Financial expenses | 5,216,790.23 | 9,191,587.68 |
| Including: Interest expenses | 9,050,600.05 | 7,605,454.70 |
| Interest income | -474,543.54 | -1,317,717.89 |
| Losses of devaluation of asset | 5,941.50 | -93,425.39 |
| Add: other income | 785,000.00 | |
| Investment income (Loss is listed with “-”) | 293,005.35 | |
| Including: Investment income on affiliated company and joint venture | ||
| Changing income of fair value(Loss is listed with “-”) | ||
| Exchange income (Loss is listed with “-”) | ||
| Income from assets disposal (Loss is listed with “-”) | -151,337.27 | -31,321.94 |
| III. Operating profit (Loss is listed with “-”) | -242,810.40 | -1,544,317.72 |
| Add: Non-operating income | 1,413,171.48 | 3,052,612.99 |
| Less: Non-operating expense | 182,806.76 | 24,775.13 |
| IV. Total Profit (Loss is listed with “-”) | 987,554.32 | 1,483,520.14 |
| Less: Income tax expense | 490,059.24 | 1,135,130.69 |
| V. Net profit (Net loss is listed with “-”) | 497,495.08 | 348,389.45 |
| (i) net profit from continuous operation (Net loss is listed with “-”) | 497,495.08 | 348,389.45 |
| (ii) net profit from discontinued |
| operation (Net loss is listed with “-”) | ||
| Net profit attributable to owner’s of parent company | 497,495.08 | 348,389.45 |
| Minority shareholders’ gains and losses | ||
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
| 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | ||
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments |
| 5. Translation differences arising on translation of foreign currency financial statements | ||
| 6. Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 497,495.08 | 348,389.45 |
| Total comprehensive income attributable to owners of parent Company | 497,495.08 | 348,389.45 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0018 | 0.0012 |
| (ii) Diluted earnings per share | 0.0018 | 0.0012 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, andrealized 0 Yuan at last period for combined party
6. Profit Statement of Parent Company (form the year-begin to the period-end)
In RMB
| Item | Current Period | Last Period |
| I. Operating income | 24,362,620.45 | 30,455,412.15 |
| Less: Operating cost | 4,305,861.52 | 4,325,514.67 |
| Operating tax and extras | 852,759.55 | 1,804,380.12 |
| Sales expenses | 0.00 | |
| Administration expenses | 16,386,453.83 | 22,420,306.96 |
| R&D expenses | ||
| Financial expenses | 7,207,553.05 | 2,836,883.54 |
| Including: Interest expenses | 7,205,697.51 | 2,744,258.34 |
| Interest income | -24,668.47 | -33,723.89 |
| Losses of devaluation of asset | -93,425.39 | |
| Add: other income | 0.00 | |
| Investment income (Loss is listed with “-”) | 0.00 | |
| Including: Investment | 0.00 |
| income on affiliated company and joint venture | ||
| Changing income of fair value(Loss is listed with “-”) | ||
| Income from assets disposal (Loss is listed with “-”) | -26,592.13 | |
| II. Operating profit (Loss is listed with “-”) | -4,416,599.63 | -838,247.75 |
| Add: Non-operating income | 1,399,915.15 | |
| Less: Non-operating expense | 131,247.82 | 50.88 |
| III. Total Profit (Loss is listed with “-”) | -4,547,847.45 | 561,616.52 |
| Less: Income tax expense | -459,637.00 | 800,974.16 |
| IV. Net profit (Net loss is listed with “-”) | -4,088,210.45 | -239,357.64 |
| (i) net profit from continuous operation (Net loss is listed with “-”) | -4,088,210.45 | -239,357.64 |
| (ii) net profit from discontinued operation (Net loss is listed with “-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
| 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1. Share of the other comprehensive income of the investee accounted for using equity |
| method which will be reclassified subsequently to profit or loss | ||
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | ||
| 5. Translation differences arising on translation of foreign currency financial statements | ||
| 6. Other | ||
| VI. Total comprehensive income | -4,088,210.45 | -239,357.64 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | -0.0144 | -0.0008 |
| (ii) Diluted earnings per share | -0.0144 | -0.0008 |
7. Consolidated Cash Flow Statement (form the year-begin to the period-end)
In RMB
| Item | Current Period | Last Period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 316,333,719.60 | 411,585,436.90 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business |
| Net increase of insured savings and investment | ||
| Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Write-back of tax received | ||
| Other cash received concerning operating activities | 12,106,490.64 | 12,669,697.70 |
| Subtotal of cash inflow arising from operating activities | 328,440,210.24 | 424,255,134.60 |
| Cash paid for purchasing commodities and receiving labor service | 261,946,585.36 | 330,088,093.97 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 49,957,977.58 | 55,158,956.96 |
| Taxes paid | 17,371,156.77 | 13,659,531.39 |
| Other cash paid concerning operating activities | 53,200,912.21 | 41,208,334.19 |
| Subtotal of cash outflow arising from operating activities | 382,476,631.92 | 440,114,916.51 |
| Net cash flows arising from operating activities | -54,036,421.68 | -15,859,781.91 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 119,000,000.00 | |
| Cash received from investment income | 293,005.35 | |
| Net cash received from disposal of fixed, intangible and other long-term assets | 967,002.00 | 75,901.58 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | 120,260,007.35 | 75,901.58 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 10,633,271.22 | 5,334,290.23 |
| Cash paid for investment | 119,000,000.00 | |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 129,633,271.22 | 5,334,290.23 |
| Net cash flows arising from investing activities | -9,373,263.87 | -5,258,388.65 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 319,218,464.59 | 236,663,522.53 |
| Cash received from issuing bonds | ||
| Other cash received concerning |
| financing activities | ||
| Subtotal of cash inflow from financing activities | 319,218,464.59 | 236,663,522.53 |
| Cash paid for settling debts | 315,712,397.89 | 237,673,502.22 |
| Cash paid for dividend and profit distributing or interest paying | 7,630,076.84 | 7,522,719.08 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 323,342,474.73 | 245,196,221.30 |
| Net cash flows arising from financing activities | -4,124,010.14 | -8,532,698.77 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -117,560.33 | -858,969.48 |
| V. Net increase of cash and cash equivalents | -67,651,256.02 | -30,509,838.81 |
| Add: Balance of cash and cash equivalents at the period -begin | 81,474,974.30 | 104,015,312.97 |
| VI. Balance of cash and cash equivalents at the period -end | 13,823,718.28 | 73,505,474.16 |
8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)
In RMB
| Item | Current Period | Last Period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 25,983,655.00 | 15,918,953.06 |
| Write-back of tax received | 0.00 | |
| Other cash received concerning operating activities | 108,279,703.54 | 42,613,349.94 |
| Subtotal of cash inflow arising from operating activities | 134,263,358.54 | 58,532,303.00 |
| Cash paid for purchasing commodities and receiving labor service | ||
| Cash paid to/for staff and workers | 2,681,972.90 | 3,604,869.82 |
| Taxes paid | 3,960,136.96 | 3,658,227.60 |
| Other cash paid concerning operating activities | 123,071,047.66 | 49,583,197.56 |
| Subtotal of cash outflow arising from operating activities | 129,713,157.52 | 56,846,294.98 |
| Net cash flows arising from operating activities | 4,550,201.02 | 1,686,008.02 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | 82,000.00 | |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | 82,000.00 | |
| Cash paid for purchasing fixed, intangible and other long-term assets | 1,126,400.00 | 1,377,592.31 |
| Cash paid for investment | ||
| Net cash received from subsidiaries and other units | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 1,126,400.00 | 1,377,592.31 |
| Net cash flows arising from investing activities | -1,044,400.00 | -1,377,592.31 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 200,000,000.00 | 115,000,000.00 |
| Cash received from issuing bonds | ||
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 200,000,000.00 | 115,000,000.00 |
| Cash paid for settling debts | 217,079,416.68 | 115,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 6,161,298.54 | 5,450,633.34 |
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 223,240,715.22 | 120,450,633.34 |
| Net cash flows arising from financing activities | -23,240,715.22 | -5,450,633.34 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 1,567.34 | 618.82 |
| V. Net increase of cash and cash equivalents | -19,733,346.86 | -5,141,598.81 |
| Add: Balance of cash and cash equivalents at the period -begin | 25,181,764.87 | 10,375,152.87 |
| VI. Balance of cash and cash equivalents at the period -end | 5,448,418.01 | 5,233,554.06 |
II. Audit report
Whether the 3
rd
quarterly report has been audited or not
□Yes √ No
The 3
rd
quarterly report of the Company has not been audited.