Zhejiang Dahua Technology Co., Ltd.
2018 Third Quarterly Report
October 2018
Section I Important Notes
The Board of Directors, Board of Supervisors, Directors, Supervisors andSenior Management of Zhejiang Dahua Technology Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee that the information presented
in this report is authentic, accurate and complete and free of any false records,misleading statements or material omissions, and they will bear joint and severallegal liability for such information.
All directors attended the meeting of the Board of Directors for deliberationof this quarterly report.
Fu Liquan, the Company’s legal representative, Wei Meizhong, chief
accountant, and Xu Qiaofen, person in charge of accounting institution(Accounting Officer) hereby declare and warrant that the financial statements inthe quarterly report are authentic, accurate and complete.
Section II. Basic Information of the Company
I. Key Accounting Data and Financial Indicators
Does the Company need to retroactively adjust or restate the annual accounting data of previous years?
□ Yes √ No
| The End of the Reporting Period | The End of the Previous Year | Increase or Decrease at This Period-end Compared to the End of the Previous Year | ||||
| Total Assets (RMB) | 23,415,201,556.89 | 21,333,478,563.97 | 9.76% | |||
| Net Assets Attributable to Shareholders of the Listed Company (RMB) | 11,447,836,224.25 | 10,466,434,375.19 | 9.38% | |||
| During this Reporting Period | Increase or Decrease in This Reporting Period Compared to the Same Period of Last year | From the Year-beginning to the End of this Reporting Period | Increase or Decrease during the Period from the Year-beginning to the End of the Reporting Period Compared to the Same Period of Last Year | |||
| Operating Revenue (RMB) | 5,216,687,713.72 | 22.50% | 15,030,729,066.20 | 28.21% | ||
| Net Profit Attributable to Shareholders of the Listed Company (RMB) | 481,764,501.06 | 4.39% | 1,563,681,387.58 | 8.25% | ||
| Net Profit Attributable to Shareholders of the Listed Company after Deducting Non-recurring Gains and Losses (RMB) | 515,756,982.03 | 14.65% | 1,623,241,371.03 | 14.28% | ||
| Net Cash Flow Generated by Operational Activities (RMB) | -570,615,032.53 | -159.03% | -1,666,971,869.53 | -46.01% | ||
| Basic Earnings per Share (RMB/Share) | 0.17 | 6.25% | 0.54 | 8.00% | ||
| Diluted Earnings per Share (RMB/Share) | 0.17 | 6.25% | 0.54 | 8.00% | ||
| Weighted Average ROE | 4.30% | -0.66% | 14.23% | -2.01% | ||
Items and Amounts of Non-recurring Gains and Losses
√Applicable □ Not applicable
Unit: RMB
| Item Name | Amount | Note |
| Profits or Losses from Disposal of Non-Current Assets (Including the | -351,393.89 |
| Write-Off for the Accrued Impairment of Assets) | ||
| The Government Subsidies Included in the Current Profits and Losses (Excluding the Government Subsidies Closely Related to Regular Businesses of the Company and Issued in the Quota or Quantity Based on the National Standards | 19,477,949.01 | |
| Profits and Losses Resulting from the Changes in Fair Value for Holding Trading Financial Assets and Trading Financial Liabilities, and Investment Income from Disposal of Trading Financial Assets, Trading Financial Liabilities, and Financial Assets Available for Trading, Excluding the Effective Hedging Businesses Related to the Regular Business Operation of the Company | -85,492,039.35 | |
| Non-operating Revenue and Expenses Other Than the Above | 11,432,160.49 | |
| Other Gains and Losses Items That Fit the Definition of Non-recurring Gains and Losses | 733,001.58 | |
| Less: Impact of Income Tax | 4,132,626.03 | |
| Impact of Minority Equity (After Tax) | 1,227,035.26 | |
| Total | -59,559,983.45 | -- |
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement on Information Disclosure forCompanies Offering Their Securities to Public - Non-recurring Gains and Losses, or non-recurring gains and losses items listed in thesaid document defined as recurring ones, please specify the reasons.
□ Applicable √ Not applicable
During the reporting period, the Company did not define any non-recurring gains and losses items defined and listed in the No. 1Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to Public - Non-recurring Gains andLosses, as recurring gains and losses items.
II. Total Number of Shareholders and Particulars of Shareholdings of Top 10 Shareholders atthe End of the Reporting Period
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights andParticulars of Shareholdings of Top 10 Shareholders
Unit: Share
| Total Number of Ordinary Shareholders at the End of the Reporting Period | 102,455 | Total Number of Preferred Shareholders with Resumed Voting Rights (If Any) at the End of the Reporting Period | 0 | ||||||
| Particulars of Shareholdings of Top 10 Shareholders | |||||||||
| Name of Shareholder | Nature of Shareholder | Shareholding Percentage | Number of Shares | Number of Shares Held with Limited Sales Condition | Pledged or Frozen | ||||
| Status | Amount | ||||||||
| Fu Liquan | Domestic natural person | 38.68% | 1,121,181,880 | 841,961,985 | Pledged | 116,942,000 |
| Zhu Jiangming | Domestic natural person | 5.37% | 155,561,490 | 116,671,117 | Pledged | 24,154,000 |
| Hong Kong Securities Clearing Company Limited | Overseas legal person | 2.68% | 77,708,409 | 0 | ||
| Chen Ailing | Domestic natural person | 2.46% | 71,262,813 | 53,447,110 | Pledged | 11,170,000 |
| Wu Jun | Domestic natural person | 2.10% | 60,790,886 | 45,593,164 | ||
| China Securities Finance Corporation Limited | Domestic non-state-owned legal person | 1.37% | 39,611,241 | 0 | ||
| Central Huijin Asset Management Limited Liability Company | State-owned legal person | 1.08% | 31,448,750 | 0 | ||
| Zhejiang Dahua Technology Co., Ltd. - Phase III ESOP (Employee Stock Ownership Plan) | Others | 0.91% | 26,247,928 | 0 | ||
| BOC - Core Growth Stock Type Security Investment Fund of China International Fund Management | Others | 0.82% | 23,828,925 | 0 | ||
| GIC PRIVATE LIMITED | Overseas legal person | 0.78% | 22,491,130 | 0 | ||
| Particulars of Shareholdings of Top Ten Shareholders without Limited Sales Condition | ||||||
| Name of Shareholder | Number of Shares Held without Limited Sales | Type | ||||
| Condition | Type | Amount | |
| Fu Liquan | 279,219,895 | RMB common stock | 279,219,895 |
| Hong Kong Securities Clearing Company Limited | 77,708,409 | RMB common stock | 77,708,409 |
| China Securities Finance Corporation Limited | 39,611,241 | RMB common stock | 39,611,241 |
| Zhu Jiangming | 38,890,373 | RMB common stock | 38,890,373 |
| Central Huijin Asset Management Limited Liability Company | 31,448,750 | RMB common stock | 31,448,750 |
| Zhejiang Dahua Technology Co., Ltd. - Phase III ESOP (Employee Stock Ownership Plan) | 26,247,928 | RMB common stock | 26,247,928 |
| BOC - Core Growth Stock Type Security Investment Fund of China International Fund Management | 23,828,925 | RMB common stock | 23,828,925 |
| GIC PRIVATE LIMITED | 22,491,130 | RMB common stock | 22,491,130 |
| Chen Ailing | 17,815,703 | RMB common stock | 17,815,703 |
| One One Seven Combination of National Social Security Fund | 16,531,387 | RMB common stock | 16,531,387 |
| Explanation on Associated Relationship or Concerted Actions among the Above-Mentioned Shareholders | Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company has no idea whether the other shareholders are related or are persons acting in concert. | ||
| Explanation on Top Ten Ordinary Shareholders' Participation in Securities Margin Trading (If Any) | N/A | ||
Whether the Company’s top ten ordinary shareholders or top ten ordinary shareholders without limited shares agree on any
repurchase transaction during the reporting period
□ Yes √ NoNone of the Company’s top ten ordinary shareholders or top ten ordinary shareholders without limited shares agreed on repurchase
during the reporting period.
2. Total Number of Preferred Shareholders and Particulars of Shareholdings of Top 10 PreferredShareholders of the Company
□ Applicable √ Not applicable
Section III Significant Events
I. Changes of Major Financial Data and Financial Indicators during the Reporting Periodand Explanation
√ Applicable □ Not applicable
(i) Changes in assets and liabilities and the reasons1. Monetary funds reduced by 46.03% compared to the period-end of the previous year, which is mainly caused by the expansion ofcompany scale and the increase of investment and expenditures;2. Other receivables increased by 33.60% compared to the period-end of the previous year, which is mainly caused by the expansionof company scale and increase of margin and payment made and received;3. The inventory increased by 41.96% compared to the period-end of the previous year, which is mainly caused by the expansion ofthe sales volume and the increase of inventory;4. Non-current assets maturing within a year increased by 38.34% compared to the period-end of the previous year, which is mainlycaused by the transfer of long-term receivables maturing within a year;5. Long-term equity investment decreased by 66.09% compared to the period-end of the previous year, which is mainly caused by theinvestment loss of the confirmed shareholding companies;6. Projects under construction increased by 128.70% compared to the period-end of the previous year, which is mainly caused byinvestment increase of the Company in house properties under construction;7. The goodwill increased by 35.81% compared to the period-end of the previous year, which is mainly caused by the increase ofgoodwill brought by acquisition of two companies in this period;8. The long-term prepaid expenses increased by 100% compared to the period-end of the previous year, which is mainly caused bythe increase of long-term unamortized decoration fee;9. The deferred income tax assets increased by 33.42% compared to the period-end of the previous year, which is mainly caused bythe increase of deductable temporary difference in this period;10. Other non-current assets increased by 102.98% compared to the period-end of the previous year, which is mainly caused by theincrease of prepayment for long-term assets in this period;11. The short-term loans increased by 57.92% compared to the period-end of the previous year, which is mainly caused by theincrease of borrowings from banks in this period;12. Financial liabilities measured in fair value with changes recorded into current profit and loss increased by 103.86% compared tothe period-end of the previous year, which is mainly caused by the fair value changes of financial derivative instruments;13. Taxes payable reduced by 32.16% compared to the period-end of the previous year, which is mainly caused by the decrease ofpayable added-value tax and corporate income tax in this period;14. Non-current liabilities maturing within a year increased by 100% compared to the period-end of the previous year, which ismainly caused by the transfer of long-term loan maturing within a year;15. Other current liabilities increased by 35.80% compared to the period-end of the previous year, which is mainly caused by theincrease of tax for items to be written off in this period;16. The anticipation liabilities increased by 43.15% compared to the period-end of the previous year, which is mainly caused by theincrease of estimated after-sales maintenance fee for products;17. Other comprehensive income decreased by 33.56% compared to the period-end of the previous year, which is mainly caused by
the changes of foreign currency statement translation in this period;18. The equity of minority shareholders increased by 69.01% compared to the period-end of the previous year, which is mainlycaused by the increase of investment by minority shareholders in this period;(ii) Changes of items in the profit statement and the reasons1. The operating cost increased by 34.04% compared to the same period of last year, which is mainly caused by the correspondingincrease of cost brought by income increase;2. The selling expenses increased by 30.51% compared to the same period of last year, which is mainly caused by the increase ofrelevant investment in order to promote stable increase of sale volume;3. The financial expenses decreased by 274.44% compared to the same period of last year, which is mainly caused by the increase ofexchange gains in this period;4. The investment income decreased by 145.46% compared to the same period of last year, which is mainly caused by the increase ofinvestment loss of joint ventures confirmed by the equity method in this period;5. The income from disposal of assets decreased by 93.22% compared to the same period of last year, which is mainly caused by lessloss arising from disposal of fixed assets than the prior period;6. The non-operating expenses reduced by 79.75% compared to the same period of last year, which is mainly caused by less lossarising from disposal of fixed assets than the prior period;(iii) Changes of items in the cash flow statement and the reasons1. The net amount of cash flow generated from operating activities reduced by 46.01% compared to the same period of last year,which is mainly caused by the expansion of business scale and the increase of cash payment during operation;2. The net amount of cash flow generated from investment activities reduced by 107.25%, which is mainly caused by the increase oflong-term assets bought and built and asset acquisition in this period;3. The net amount of cash flow generated by financing activities reduced by 40.42%, which is mainly caused by the decrease of bankloans in net amount and the increase of dividend in this period.
II. Progress of Significant Events and the Analysis and Explanation of the Influence andSolutions
√ Applicable □ Not applicable
1. On January 24, 2017, the Company's holding sub-subsidiary South North United Information Technology Co., Ltd. and itswholly-owned subsidiary Zhejiang Dahua System Engineering Co., Ltd. signed a Cooperation Agreement on PPP Investment in SafeCity Project of Shache County with the People's Government of Shache County in Kashgar, Xinjiang, which is just a frameworkagreement on the PPP project. The agreement stipulates that the service content is the pre-feasibility study of the project and thedesign of the project, etc. For the implementation of the specific project, it still needs to fulfill related decision-making and approvalprocedures, such as government procurement.
On July 21, 2017, the Company received the Notification of Award issued by the project purchasing unit, which confirmed thatthe wholly-owned subsidiary Zhejiang Dahua System Engineering Co., Ltd. (the consortium leader), with the holding sub-subsidiarySouth North United Information Technology Co., Ltd. (member of the consortium) was the winning bidder for the Safe CityConstruction Project (PPP) in Shache County. The winning bid amount of the project is RMB 4,314,790,000 (the final amount isbased on the signed contract), which is the total amount for construction and operation within 10 years project cooperation period.On August 4, 2017, the Company's 34th session of the 5th Board of Directors' meeting reviewed and approved the Proposal onInvesting to Establish a PPP Project Company in Shache County, Xinjiang, and the Company submitted a bid based on therequirements for the Shache County City Construction Project (PPP). The winning consortium jointly funded the establishment of the
project company, with a registered capital of RMB 335,567,200. Among them, Zhejiang Dahua System Engineering Co., Ltd.contributed RMB 234,897,040, accounting for 70% of the total contribution; South North United Information Technology Co., Ltd.contributed RMB 100,670,160, accounting for 30%. In August 2017, the project company was established and the name of thecompany approved by the industrial and commercial bureau was Xinjiang Dahua Xinzhi Information Technology Co., Ltd.On April 18, 2018, the winning bidder received the requirements of Shache Public Security Bureau to stop implementation ofSafe City Construction Project (PPP) in Shache County. Near a half of the construction progress during the project constructionperiod has been completed, but no expenses for subsequent equipment replacement, operation and maintenance have been incurred.The actual investment during the construction period will be further accounted and confirmed with the government.The various activities and construction of this project engaged in by the winning bidder are in compliance with the requirementsin PPP-related laws and regulations, but the risk exists that the project will not be furthered and the identifiable income of theCompany in the future may be reduced. The Company will actively cooperate with relevant government departments in their work,and timely perform the obligation of information disclosure in accordance with the subsequent progress of the project and theprovisions in relevant laws and regulations and the Articles of Association.
2. On January 25, 2018, the Company's 5th session of the 6th Board of Directors' meeting reviewed and approved the Proposalon Adjustment of Joint Investment Plan with Connected Persons and Connected Transactions (I). It's agreed to adjust thecontributions to Zhejiang Huaan Technology Co., Ltd. (temporary name) with the connected legal person Zhejiang HuashiInvestment Management Co., Ltd., the connected natural person Wei Meizhong and 15 unconnected natural persons. After theadjustment, the Company will contribute RMB 25.5 million with its own funds, accounting for 51% of the registered capital. InMarch 2018, the project company was established and the name of the company approved by the industrial and commercial bureau isZhejiang Huaxiao Technology Co., Ltd.
3. On January 25, 2018, the Company's 5th session of the 6th Board of Directors' meeting reviewed and approved the Proposalon Adjustment of Joint Investment Plan with Connected Persons and Connected Transactions (II). It's agreed to adjust thecontributions to Zhejiang Huazhi Technology Co., Ltd. (renamed as Zhejiang Dahua Robot Technology Co., Ltd.) with the connectedlegal person Zhejiang Huashi Investment Management Co., Ltd. and the unconnected persons. After the adjustment, the Companywill contribute RMB 25.5 million with its own funds, accounting for 51% of the registered capital; Huashi Investment will contributeRMB 24.5 million in cash, accounting for 49% of the registered capital. In August 2018, the project company was established.
4. On January 25, 2018 the Company's 5th session of the 6th Board of Directors' meeting reviewed and approved the Proposalon Giving up the Shareholding Company's Right to Increase Capital with the Same Percentage and Connected Transactions. It isagreed to give up the right of 8 investors including Ningbo Jinghang Equity Investment Partnership, Ningbo Gulin Equity InvestmentPartnership and Hangzhou Yixun Investment Management Partnership to increase the capital of Zhejiang Leapmotor Technology Co.,Ltd. with the same percentage. The total amount of connected transactions involved in giving up the right to increase the capital withthe same percentage is RMB 41,948,300. The change of industrial and commercial registrations for the above matter was completedin March 2018.5. On February 24, 2018, the Company disclosed the Announcement on Subsidiary's Release of External Guarantees. TheCompany's subsidiaries, System Engineering, Dahua Zhicheng and Yunnan International Trust Co., Ltd. signed the Pledge Contracton December 6, 2017. System Engineering and Dahua Zhicheng as a pledger provided a pledge guarantee for the debt under the TrustLoan Contract signed between Guangxi Baixing Holdings Co., Ltd. as a debtor and Yunnan International Trust Co., Ltd. as a creditor(with the trust loan principal of RMB 0.23 billion). The collateral in this guarantee was System Engineering and Dahua Zhicheng'saccounts receivable income rights. This guarantee responsibility was released on February 22, 2018.
6. On March 6, 2018, the Company's First Extraordinary General Meeting of Shareholders in 2018 reviewed and approved theManagement Measures for Core Employee Venture Capital Investment New Businesses (Draft), and decided to implement the coreemployee venture capital investment new business plan of the Company.
7. On April 17, 2018, the Company's 8th session of the 6th Board of Directors' meeting reviewed and approved the Proposal onIncreasing Capital in Holding Subsidiaries and Connected Transactions. The Company and the connected person Mr. Fu Liquan
increased capital in holding subsidiary Hangzhou Huacheng Network Technology Co., Ltd. with the same percentage. Among them,the Company increased the capital by RMB 20.4 million. Upon completion of the capital increase, the registered capital of HuachengNetwork was increased from RMB19.6 million. Upon completion of the capital increase, the registered capital of Huacheng Networkwas increased from RMB 10 million to RMB 50 million. The change of industrial and commercial registrations for the above matterwas completed in April 2018.
8. On May 16, 2017, the Company's 2016 Annual General Meeting of Shareholders reviewed and approved the Zhejiang DahuaTechnology Co., Ltd. Phase III Employee Stock Ownership Plan (Draft) and its summary, and decided to implement the Phase IIIEmployee Stock Ownership Plan. On June 1, 2017, the Company's Phase III Employee Stock Ownership Plan completed thepurchase of the shares through the Caitong Securities Asset Management Dahua No. 3 Directed Asset Management Plan, with anaverage purchase price of RMB16.83 per share and a purchase volume of 47,000,000 shares. As of June 2, 2018, the lock-up periodof the Company's Phase III Employee Stock Ownership Plan expired.
9. On May 17, 2017, the Company's 31st session of the 5th Board of Director's meeting reviewed and approved the Proposal onIncreasing Capital in Holding Subsidiaries, and it's agreed that the Company will increase its capital in Dahua Zhilian by RMB 610million with its own funds. In this capital increase, China Development Bank Development Fund Co., Ltd. gives up the right toincrease the capital with the same percentage. Upon completion of the capital increase, the registered capital of Dahua Zhilian will beincreased from RMB 500 million to RMB 1.11 billion. The proportion of equity held by the Company will be 90.09%. This capitalincrease was completed on June 26, 2018.
10. On May 31, 2018, the Company's 11th session of the 6th Board of Director's meeting reviewed and approved the Proposalon Accepting Transfer of Part of the Equity of the Company and Giving up the Priority to Accept Transfer and ConnectedTransactions. It is agreed to: (1) Accept transfer of 6% equity in HuaRay Technology held by the connected legal person ZhejiangHuashi Investment Management Co., Ltd., and give up the priority to accept transfer of 49% equity in HuaRay Technology by theconnected legal person Huashi Investment, the connected natural person Zhang Xingming and other unconnected persons to theconnected legal persons and the core employee venture capital investment new business shareholding platform Ningbo HuayuInvestment Management Partnership Enterprise (hereinafter referred to as "Ningbo Huayu"); (2) Give up the priority to accepttransfer of 49% equity in Zhejiang Huachuang Vision Technology Co., Ltd. held by the connected legal person Huashi Investmentand other unconnected natural persons to Ningbo Huayu; (3) Give up the priority to accept proposed transfer of 49% equity inZhejiang Dahua Security Network Operation Service Co., Ltd. held by the connected legal person Huashi Investment, the connectednatural person Wu Jun and other unconnected persons to Ningbo Huayu. In July 2018, the above three matters about equity transferwere completed.
11. On May 31, 2018, the Company's 11th session of the 6th Board of Director's meeting reviewed and approved the Proposalon Making Joint Investment with the Connected Persons and Connected Transactions. It is agreed to jointly fund the establishment ofWuxi Dahua Ruipin Technology Co., Ltd. with the connected legal person Huashi Investment. Among them, the Companycontributed RMB 25.5 million with its own funds, accounting for 51% of the registered capital. Huashi Investment contributed RMB24.5 million by cash, accounting for 49% of the registered capital. In June 2018, the project company was established.
12. On June 21, 2018, the Company's 12th session of the 6th Board of Director's meeting reviewed and approved the Proposalon Giving up the Priority to Accept Transfer and Connected Transactions. It is agreed to give up the priority to accept the proposedtransfer of 49% equity in Hangzhou Huacheng Network Technology Co., Ltd. held by the Company's controlling shareholder FuLiquan to the connected legal persons and the core employee venture capital investment new business shareholding platform NingboHuayu. In July 2018, this equity transfer was completed.
13. On July 16, 2018, the Company’s 13th session of the 6th Board of Director’s meeting reviewed and approved the Proposalon Investing to Build the “Dahua Intelligent Base in West China and the Dahua R&D Center in West China” in Xi’an. It’s agreed that
the Company will invest about RMB 800 million in the construction of this project. The land use of this project is about 133.64 mu,mainly planned for construction of the R&D and office sites, as well as the supporting facilities. The overall construction period ofthis project is about 42 months.
14. On September 14, 2018, the Company’s 4th extraordinary shareholders’ general meeting reviewed and approved the 2018
Incentive Plan for Restricted Shares (draft) and its summary, the Management Measures for Implementation and Assessment of the
Incentive Plan for Restricted Shares in 2018, the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board ofDirectors to Handle Issues Relating to the Share Ownership Incentive. It’s agreed to allow the Company to implement the 2018
incentive plan for restricted shares. Total number of the incentive targets is 3423, and the proposed number of shares to be granted is121,749,000 (the actual number shall be subject to the actually subscribed amount). Now, the event is still underway.
| Overview of the Significant Events | Date of Disclosure | Indexes for Inquiring the Websites Disclosing the Interim Reports |
| The Announcement on the Signing of the Framework Agreement for the PPP Project by the Subsidiary | January 26, 2017 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Advisory Announcement on the Pre-Publicity of the Award of the PPP Project to the Subsidiary | July 18, 2017 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on Investing to Establish A PPP Project Company in Shache County, Xinjiang, | August 7, 2017 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on the Progress of the Subsidiary’s PPP Project | April 18, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on Adjustment of the Joint Investment Plan with Connected Persons and Connected Transactions (I), Announcement on Adjustment of the Joint Investment Plan with Connected Persons and Connected Transactions (II), and the Announcement on Giving up the Shareholding Company’s Right to Increase Capital with the Same Percentage and Connected Transactions | January 26, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on Removing the Subsidiary’s External Guarantee | February 24, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Management Measures on Core Employees’ Venture Capital Investment in New Business (draft) | January 26, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| Announcement of Resolutions at the First Extraordinary General Meeting of 2018 | March 7, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on Increasing Capital in a Holding Subsidiary and the Connected Transactions | April 18, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on the Resolutions of | May 3, 2017 | Juchao Information Website |
| the 29th Session of the 5th Board of Directors’ Meeting, the Announcement on the Resolutions of the 19th Session of the 5th Board of Supervisors’ Meeting, Summary of the Dahua Phase III Employee Stock Ownership Plan (Draft) | http://www.cninfo.com.cn/ | |
| The Announcement on the Resolutions of the 2016 Annual Shareholders’ General Meeting | May 17, 2017 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on Increasing Capital in a Holding Subsidiary | May 18, 2017 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on the Accomplishment of Purchase for the Phase III Employee Stock Ownership Plan | June 2, 2017 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on Accepting the Transfer of Part of the Subsidiary’s Equity and Giving up the Priority to Accept Transfer and Connected Transactions, and the Announcement on Joint Investment with Connected Persons and Connected Transactions | June 1, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| Announcement on Giving up the Priority to Accept Transfer and Connected Transactions | June 22, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on Investing to Build the “Dahua Intelligent Base in West China and the Dahua R&D Center in West China” in Xi’an | July 17, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on the Resolutions of the 15th Session of the 6th Board of Directors’ Meeting, the Announcement on the Resolutions of the 7th Session of the 6th Board of Supervisors’ Meeting, 2018 Incentive Plan for Restricted Shares (draft) and Its Summary, the Management Measures for Implementation and Assessment of the Incentive Plan for Restricted Shares in 2018 | August 29, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
| The Announcement on Resolutions of the 4th Extraordinary Shareholders’ General Meeting in 2018 | September 15, 2018 | Juchao Information Website http://www.cninfo.com.cn/ |
III. Overdue Commitments Not Yet Preformed by the Company’s De Facto Controller,
Shareholders, Connected Parties, Acquirers, the Company, and Other Commitment-relatedParties during the Reporting Period
√ Applicable □ Not applicable
| Commitments | Giver of Commitments | Types of commitments | Details | Time | Term | Performance |
| Commitments Made during Initial Public Offerings or Refinancing | Fu Liquan, Zhu Jiangming, Chen Ailing, and Wu Jun | Commitment on restricted shares | The number of shares transferred each year during his/her term of service shall not exceed 25 percent of the total number of shares he/she holds in the Company; he/she shall not transfer his/her shares in the Company within half a year after he/she leaves the Company; within the next twelve months, the number of shares sold through the stock exchange listing transactions shall not exceed 50% of the total shares he/she holds. | July 15, 2007 | Long-term | As of the disclosure date of this announcement, the aforementioned commitments are still in strict execution. |
| Other Commitments to Minority Shareholders of the Company | Fu Liquan, and Chen Ailing | Commitment on horizontal competition | (1) He/she will not directly engage in operational activities that constitute horizontal competition with the stock company's business; (2) for companies he/she held or indirectly held, he/she will fulfill the obligations under this commitment through agencies and personnel (including but not limited to directors and managers); (3) if the stock company further expands its range of products and business scope, he/she and the company held by him/her will not compete with the expanded range of products or businesses of the stock company. | June 30, 2007 | Long-term | As of the disclosure date of this announcement, the aforementioned commitments are still in strict execution. |
| Whether the Commitment Is Fulfilled on Time | Yes | |||||
IV. Forecast on the Company’s Operating Results for 2018
Forecasted operating results for 2018: The net profit attributable to shareholders of the listed company is in a positive number, and
it’s not a circumstance of turning losses into profit.
| Amount of Variation in Net Profit Attributable to Shareholders of the Listed Company in 2018 | 0% | to | 15% |
| Range of Variation in Net Profit Attributable to Shareholders of | 237,872.68 | to | 273,553.58 |
| the Listed Company in 2018 (Rmb10,000) | |
| Net Profit Attributable to Shareholders of the Listed Company in 2017 (Rmb10,000) | 237,872.68 |
| Reasons for the Performance Variation | The Company’s sale volume expanded and the operation revenue increased. It’s estimated that the net profit attributable to owners of the parent company increased by 0% ~ 15% compared to the same period of last year. |
V. Financial Assets Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
| Asset Class | Initial Investment Cost | Changes in Fair Value Gains and Losses during the Current Period | Cumulative Fair Value Changes in Equity | Amount Purchased During the Reporting Period | Amount Sold During the Reporting Period | Cumulative Investment Income | Amount at the End of the Period | Capital Source |
| Financial derivative instruments | -64,861,287.24 | 1,694,800,000.00 | -21,635,760.81 | 1,081,920,000.00 | Equity Fund | |||
| Total | -64,861,287.24 | 1,694,800,000.00 | -21,635,760.81 | 1,081,920,000.00 | -- |
VI. Guarantee for Third Parties in Violation of Regulations
□ Applicable √ Not applicable
During the reporting period, there was no guarantee for third parties in violation of regulations.
VII. Appropriation of Non-operational Funds of Listed Companies by ControllingShareholders and Their Connected Parties
□ Applicable √ Not applicable
VIII. Entrusted Wealth Management
√ Applicable □ Not applicable
Unit: Ten thousand RMB
| Specific Type | Funding Source | Entrusted Amount | Unexpired Balance | Overdue Outstanding Amount |
| Bank financial products | Equity Fund | 3,900 | 0 | 0 |
| Total | 3,900 | 0 | 0 | |
Situation of high-risk entrusted WM with significant single amount or low security, poor liquidity and no principal protection
□ Applicable √ Not applicable
Cases of entrusted financing expected to be unable to recover the principal or cases that may result in impairment
□ Applicable √ Not applicable
IX. Registration Record for Analyst Reception, Communications, Interviews, and OtherActivities during the Reporting Period
√ Applicable □ Not applicable
| Reception Time | Reception Method | Reception Target Type | Index of the Basic Information of Research |
| July 2, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| July 8, 2018 | Communication via phone | Institutional and individual investors | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| July 17, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| July 18, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| August 23, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| August 29, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| August 30, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 6, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 7, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 12, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 13, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 14, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 18, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 19, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 20, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 26, 2018 | Communication via phone | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
| September 27, 2018 | Field Investigation | Institution | For more information, please see the investor relations activity list in http://www.cninfo.com.cn |
Section IV. Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co., Ltd.
September 30, 2018
Unit: RMB
| Items | Closing Balance | Opening Balance |
| Current Assets: | ||
| Cash and Bank Balances | 1,950,080,565.32 | 3,612,937,164.14 |
| Deposit Reservation for Balance | ||
| Loans to Banks and Other Financial Institutions | ||
| Financial Assets at Fair Value through Profit or Loss | ||
| Derivative Financial Assets | ||
| Notes Receivable and Accounts Receivable | 11,724,224,390.52 | 9,971,240,927.27 |
| Notes Receivable | 2,158,210,607.00 | 2,431,296,170.58 |
| Accounts Receivable | 9,566,013,783.52 | 7,539,944,756.69 |
| Prepayments | 172,563,190.47 | 154,357,171.13 |
| Premium Receivable | ||
| Reinsurance Accounts Receivable | ||
| Reinsurance Contract Reserves Receivable | ||
| Other Receivables | 390,477,962.01 | 292,278,208.02 |
| Buying Back the Sale of Financial Assets | ||
| Inventories | 3,983,493,620.76 | 2,806,142,598.65 |
| Assets Held for Sale | ||
| Non-current Assets Due within 1 Year | 508,123,156.73 | 367,302,811.80 |
| Other Current Assets | 334,398,018.68 | 352,055,656.65 |
| Subtotal of Current Assets | 19,063,360,904.49 | 17,556,314,537.66 |
| Non-current Assets: | ||
| Loans and Advances | ||
| Financial Assets Available for Sale | 82,970,227.00 | 77,970,227.00 |
| Held-to-maturity Investments |
| Long-term Receivables | 1,676,664,764.93 | 1,480,947,137.80 |
| Long-term Equity Investment | 20,778,210.52 | 61,272,885.41 |
| Investment Property | 186,682,164.13 | 181,050,142.29 |
| Fixed Assets | 1,301,919,596.37 | 1,248,305,165.77 |
| Projects under Construction | 134,426,331.91 | 58,779,225.41 |
| Productive Biological Assets | ||
| Oil and Gas Assets | ||
| Intangible Assets | 293,554,853.39 | 253,357,254.66 |
| Development Expenditure | ||
| Goodwill | 96,540,278.38 | 71,083,281.09 |
| Long-term Prepaid Expenses | 34,163,106.29 | |
| Deferred Income Tax Assets | 335,482,309.11 | 251,453,971.05 |
| Other Non-current Assets | 188,658,810.37 | 92,944,735.83 |
| Subtotal of Non-current Assets | 4,351,840,652.40 | 3,777,164,026.31 |
| Total Assets | 23,415,201,556.89 | 21,333,478,563.97 |
| Current Liabilities: | ||
| Short-term Borrowings | 2,796,729,838.96 | 1,770,924,255.90 |
| Borrowings from the Central Bank | ||
| Deposit Taking and Interbank Deposit | ||
| Borrowings from Banks and Other Financial Institutions | ||
| Financial Liabilities Measured at Fair Value with Changes Recorded into Current Profit and Loss | 127,311,287.24 | 62,450,000.00 |
| Derivative Financial Liabilities | ||
| Notes Payable and Accounts Payable | 6,352,341,522.39 | 6,136,607,389.03 |
| Received Prepayments | 461,813,353.75 | 461,715,422.38 |
| Financial Assets Sold for Repurchase | ||
| Service Charge and Commission Payable | ||
| Employee Compensation Payable | 603,163,381.51 | 851,146,379.97 |
| Tax Payable | 325,332,337.92 | 479,536,571.45 |
| Other Payables | 131,404,867.44 | 107,991,640.10 |
| Reinsurance Accounts Payable | ||
| Insurance Contract Reserves | ||
| Receiving from Vicariously Traded Securities | ||
| Receiving from Vicariously Sold Securities |
| Liabilities Held for Sale | ||
| Non-current Liabilities Due within 1 Year | 25,500,000.00 | |
| Other Current Liabilities | 62,391,071.01 | 45,941,962.85 |
| Subtotal of Current Liabilities | 10,885,987,660.22 | 9,916,313,621.68 |
| Non-current Liabilities: | ||
| Long-term Borrowings | 179,500,000.00 | 230,000,000.00 |
| Bonds Payable | ||
| Including: Preferred Shares | ||
| Perpetual Bonds | ||
| Long-term Payables | ||
| Long-term Employee Compensation Payable | ||
| Expected Liabilities | 183,227,904.04 | 127,998,889.61 |
| Deferred Income | 59,486,689.27 | 61,866,156.88 |
| Deferred Income Tax Liabilities | 57,617,847.02 | 45,468,946.77 |
| Other Non-current Liabilities | 387,253,299.37 | 358,600,936.54 |
| Subtotal of Non-current Liabilities | 867,085,739.70 | 823,934,929.80 |
| Total Liabilities | 11,753,073,399.92 | 10,740,248,551.48 |
| Shareholders' Equity: | ||
| Share Capital | 2,898,756,130.00 | 2,898,756,130.00 |
| Other Equity Instruments | ||
| Including: Preferred Shares | ||
| Perpetual Bonds | ||
| Capital Reserves | 593,047,746.10 | 593,340,751.52 |
| Less: Treasury Share | ||
| Other Comprehensive Incomes | 4,424,881.94 | 6,660,189.04 |
| Special Reserves | ||
| Surplus Reserves | 971,547,268.36 | 971,547,268.36 |
| General Risk Reserves | ||
| Undistributed Profits | 6,980,060,197.85 | 5,996,130,036.27 |
| Total Shareholders' Equity Attributable to the Parent Company | 11,447,836,224.25 | 10,466,434,375.19 |
| Minority Shareholders' Equity | 214,291,932.72 | 126,795,637.30 |
| Total Shareholders' Equity | 11,662,128,156.97 | 10,593,230,012.49 |
| Total Liabilities and Shareholders' Equity | 23,415,201,556.89 | 21,333,478,563.97 |
Legal representative: Fu Liquan Person in charge of accounting: Wei Meizhong Person in charge of the accounting institution:
Xu Qiaofen
2. Balance Sheet of the Parent Company
Unit: RMB
| Item Name | Balance at the End of the Period | Balance at the Commencement of the Period |
| Current Assets: | ||
| Cash and Bank Balances | 71,405,246.50 | 528,918,086.71 |
| Financial Assets at Fair Value through Profit or Loss | ||
| Derivative Financial Assets | ||
| Notes Receivable and Accounts Receivable | 3,426,033,208.87 | 5,961,186,747.25 |
| Notes Receivable | 809,348,902.91 | 28,625,396.43 |
| Accounts Receivable | 2,616,684,305.96 | 5,932,561,350.82 |
| Prepayments | 25,728,385.69 | 60,553,036.53 |
| Other Receivables | 6,709,796,459.94 | 2,745,958,536.36 |
| Inventories | 163,606,404.79 | 155,981,228.49 |
| Assets Held for Sale | ||
| Non-current Assets Due within 1 Year | 13,876,282.77 | 721,747.17 |
| Other Current Assets | 2,029,756.40 | 613,008.35 |
| Subtotal of Current Assets | 10,412,475,744.96 | 9,453,932,390.86 |
| Non-current Assets: | ||
| Financial Assets Available for Sale | 80,496,000.00 | 75,496,000.00 |
| Held-to-maturity Investments | ||
| Long-term Receivables | 103,462,663.88 | 2,900,649.67 |
| Long-term Equity Investment | 2,801,028,137.56 | 2,492,439,607.09 |
| Investment Property | 185,678,627.21 | 188,865,490.54 |
| Fixed Assets | 481,168,448.33 | 457,103,573.22 |
| Projects under Construction | 71,884,083.59 | 32,179,351.04 |
| Productive Biological Assets | ||
| Oil and Gas Assets | ||
| Intangible Assets | 175,680,461.28 | 183,721,662.56 |
| Development Expenditure | ||
| Goodwill | ||
| Long-term Prepaid Expenses | 27,404,226.91 |
| Deferred Income Tax Assets | 40,923,167.45 | 36,986,523.59 |
| Other Non-current Assets | 4,975,897.63 | 3,611,195.07 |
| Subtotal of Non-current Assets | 3,972,701,713.84 | 3,473,304,052.78 |
| Total Assets | 14,385,177,458.80 | 12,927,236,443.64 |
| Current Liabilities: | ||
| Short-term Borrowings | 1,238,603,047.41 | 700,000,000.00 |
| Financial Liabilities Measured at Fair Value with Changes Recorded into Current Profit and Loss | ||
| Derivative Financial Liabilities | ||
| Notes Payable and Accounts Payable | 671,719,813.13 | 524,188,372.26 |
| Received Prepayments | 52,538,394.26 | 87,898,434.50 |
| Employee Compensation Payable | 454,065,987.85 | 632,166,128.79 |
| Tax Payable | 144,004,473.39 | 346,992,152.22 |
| Other Payables | 147,322,352.42 | 137,023,150.55 |
| Liabilities Held for Sale | ||
| Non-current Liabilities Due within 1 Year | ||
| Other Current Liabilities | 1,622,539.72 | 67,347.75 |
| Subtotal of Current Liabilities | 2,709,876,608.18 | 2,428,335,586.07 |
| Non-current Liabilities: | ||
| Long-term Borrowings | ||
| Bonds Payable | ||
| Including: Preferred Shares | ||
| Perpetual Bonds | ||
| Long-term Payables | ||
| Long-term Employee Compensation Payable | ||
| Expected Liabilities | 866,100.00 | 925,500.00 |
| Deferred Income | ||
| Deferred Income Tax Liabilities | 43,435.80 | 43,435.80 |
| Other Non-current Liabilities | 13,713,673.83 | 452,397.55 |
| Subtotal of Non-current Liabilities | 14,623,209.63 | 1,421,333.35 |
| Total Liabilities | 2,724,499,817.81 | 2,429,756,919.42 |
| Shareholders' Equity: | ||
| Share Capital | 2,898,756,130.00 | 2,898,756,130.00 |
| Other Equity Instruments |
| Including: Preferred Shares | ||
| Perpetual Bonds | ||
| Capital Reserves | 589,258,331.39 | 589,895,836.49 |
| Less: Treasury Share | ||
| Other Comprehensive Incomes | ||
| Special Reserves | ||
| Surplus Reserves | 971,547,268.36 | 971,547,268.36 |
| Undistributed Profits | 7,201,115,911.24 | 6,037,280,289.37 |
| Total Shareholders' Equity | 11,660,677,640.99 | 10,497,479,524.22 |
| Total Liabilities and Shareholders' Equity | 14,385,177,458.80 | 12,927,236,443.64 |
3. Consolidated Income Statement during the Reporting Period
Unit: RMB
| Item Name | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
| I. Total Operating Revenue | 5,216,687,713.72 | 4,258,629,946.91 |
| Including: Operating Revenue | 5,216,687,713.72 | 4,258,629,946.91 |
| Interest Income | ||
| Earned Premiums | ||
| Service Charge and Commission Income | ||
| II. Total Operating Cost | 4,924,556,705.48 | 3,988,697,415.89 |
| Including: Operating Cost | 3,333,731,189.72 | 2,614,967,687.65 |
| Interest Expenditures | ||
| Service Charge and Commission Expenses | ||
| Surrender Value | ||
| Net Claims Paid | ||
| Net Amount Withdrawn for Insurance Contract Reserves | ||
| Policyholder Dividend Expense | ||
| Reinsurance Cost | ||
| Taxes and Surcharges | 41,313,194.06 | 29,265,243.65 |
| Sales Expenses | 823,964,851.51 | 644,345,628.10 |
| Administrative Expenses | 208,144,671.11 | 164,459,090.85 |
| Research and Development Expense | 646,771,713.83 | 414,353,282.97 |
| Financial Expenses | -166,844,524.16 | 60,123,771.90 |
| Interest Expenses | 29,722,966.77 | 17,142,477.83 |
| Interest Income | -29,379,494.71 | -10,325,899.80 |
| Losses on Assets Impairment | 37,475,609.41 | 61,182,710.77 |
| Add: Other Incomes | 182,833,069.63 | 167,151,052.30 |
| Investment Income (Mark "-" for Loss) | -31,254,782.85 | -7,216,081.77 |
| Including: Investment Income from Affiliates and Joint Ventures | -6,657,627.72 | -9,622,121.02 |
| Incomes from Changes in Fair Value (Mark "-" for Losses) | -23,528,521.97 | |
| Exchange Gains (Mark "-" for Losses) | ||
| Asset Disposal Income (Mark "-" for Loss) | 30,560.71 | 24,143.20 |
| III. Operating Profit (Mark "-" for Loss) | 420,211,333.76 | 429,891,644.75 |
| Add: Non-operating Revenues | 19,971,732.76 | 17,373,984.31 |
| Less: Non-operating Expenses | 330,608.26 | 10,761,224.43 |
| IV. Total Profit (Mark "-" for Total Loss) | 439,852,458.26 | 436,504,404.63 |
| Less: Income Tax Expense | -47,525,102.25 | -27,577,340.21 |
| V. Net Profit (Mark "-" for Net Loss) | 487,377,560.51 | 464,081,744.84 |
| (I) Net Profit as a Going Concern (Mark "-" for Net Loss) | 487,377,560.51 | 464,081,744.84 |
| (II) Net Profit of Discontinued Operation (Mark "-" for Net Loss) | ||
| Net Profit Attributable to the Parent Company's Owner | 481,764,501.06 | 461,492,620.03 |
| Minority Shareholders' Profit and Loss | 5,613,059.45 | 2,589,124.81 |
| VI. Net Amount of Other Comprehensive Incomes after Tax | -10,629,067.12 | 670,976.56 |
| Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner | -10,629,067.12 | 670,976.56 |
| (I) Other Comprehensive Incomes That Cannot Be Subsequently Reclassified as P/L | ||
| 1. Changes Arising from Remeasurement of Net Liabilities or Net Assets in Defined Benefit Plans | ||
| 2. Share in Other Comprehensive Incomes of the Investee That Cannot Be Reclassified as P/L under the Equity Method | ||
| (II) Other Comprehensive Incomes That Will Be Subsequently Reclassified as P/L | -10,629,067.12 | 670,976.56 |
| 1. Share in Other Comprehensive Incomes of the Investee That Will Be Subsequently Reclassified as P/L under the Equity Method | ||
| 2. Profit or Loss Arising from Changes in the Fair Value of Financial Assets Available for Sale | ||
| 3. Profit or Loss Arising from Reclassifying Investments Held to Maturity as Financial Assets Available for Sale |
| 4. Effective Part of Profit or Loss from Cash Flow Hedging | ||
| 5. Currency Translation Difference | -10,629,067.12 | 670,976.56 |
| 6. Others | ||
| Net Amount of Other Comprehensive Incomes after Tax Attributable to Minority Shareholders | ||
| VII. Total Comprehensive Income | 476,748,493.39 | 464,752,721.40 |
| Total Comprehensive Income Attributable to the Parent Company's Owner | 471,135,433.94 | 462,163,596.59 |
| Total Comprehensive Income Attributable to Minority Shareholders | 5,613,059.45 | 2,589,124.81 |
| VIII. Earnings per Share: | ||
| (I) Basic Earnings per Share | 0.17 | 0.16 |
| (II) Diluted Earnings per Share | 0.17 | 0.16 |
For consolidation under the same control in this period, the net profit realized by the consolidated party before consolidation is:
RMB. The net profit realized by the consolidated party in previous period is: RMB.
Legal representative: Fu Liquan Person in charge of accounting: Wei Meizhong Person in charge of the accountinginstitution: Xu Qiaofen
4. Income Statement of the Parent Company during the Reporting Period
Unit: RMB
| Item Name | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
| I. Operating Revenue | 1,792,844,785.59 | 1,485,813,679.96 |
| Less: Operating Cost | 287,661,878.89 | 92,090,181.65 |
| Taxes and Surcharges | 22,733,401.39 | 22,839,772.98 |
| Sales Expenses | 488,743,169.47 | 401,932,848.45 |
| Administrative Expenses | 99,149,898.12 | 82,010,686.04 |
| Research and Development Expense | 589,456,757.42 | 374,797,651.53 |
| Financial Expenses | 5,462,603.59 | 9,035,089.64 |
| Interest Expenses | 8,996,914.10 | 7,996,610.52 |
| Interest Income | -4,962,437.30 | -547,735.65 |
| Losses on Assets Impairment | -44,895,002.92 | 10,477.35 |
| Add: Other Incomes | 171,234,834.51 | 165,899,068.25 |
| Investment Income (Mark "-" for Loss) | -6,657,627.72 | -5,886,140.85 |
| Including: Investment Income from Affiliates and Joint Ventures | -6,657,627.72 | -9,814,908.55 |
| Incomes from Changes in Fair Value (Mark "-" for Losses) |
| Asset Disposal Income (Mark "-" for Loss)） | 21,718.55 | 24,143.20 |
| II. Operating Profit (Mark "-" for Loss) | 509,131,004.97 | 663,134,042.92 |
| Add: Non-operating Revenues | 17,831,075.48 | 8,466,711.09 |
| Less: Non-operating Expenses | 245,021.42 | 9,804,377.97 |
| III. Total Profit (Mark "-" for Total Loss) | 526,717,059.03 | 661,796,376.04 |
| Less: Income Tax Expense | -110,393,938.26 | 7,148,065.16 |
| IV. Net Profit (Mark "-" for Net Loss) | 637,110,997.29 | 654,648,310.88 |
| (I) Net Profit as a Going Concern (Mark "-" for Net Loss) | 637,110,997.29 | 654,648,310.88 |
| (II) Net Profit of Discontinued Operation (Mark "-" for Net Loss) | ||
| V. Net Amount of Other Comprehensive Incomes after Tax | ||
| (I) Other Comprehensive Incomes That Cannot Be Subsequently Reclassified as P/L | ||
| 1. Changes Arising from Remeasurement of Net Liabilities or Net Assets in Defined Benefit Plans | ||
| 2. Share in Other Comprehensive Incomes of the Investee That Cannot Be Reclassified as P/L under the Equity Method | ||
| (II) Other Comprehensive Incomes That Will Be Subsequently Reclassified as P/L | ||
| 1. Share in Other Comprehensive Incomes of the Investee That Will Be Subsequently Reclassified as P/L under the Equity Method | ||
| 2. Profit or Loss Arising from Changes in the Fair Value of Financial Assets Available for Sale | ||
| 3. Profit or Loss Arising from Reclassifying Investments Held to Maturity as Financial Assets Available for Sale | ||
| 4. Effective Part of Profit or Loss from Cash Flow Hedging | ||
| 5. Currency Translation Difference | ||
| 6. Others | ||
| VI. Total Comprehensive Income | 637,110,997.29 | 654,648,310.88 |
| VII. Earnings per Share: | ||
| (I) Basic Earnings per Share | 0.22 | 0.23 |
| (II) Diluted Earnings per Share | 0.22 | 0.23 |
5. Consolidated Income Statement from the Beginning of the Year to the End of the Reporting Period
Unit: RMB
| Item Name | This Period's Amount of | Previous Period's |
| Occurrence | Amount of Occurrence | |
| I. Total Operating Revenue | 15,030,729,066.20 | 11,723,294,881.29 |
| Including: Operating Revenue | 15,030,729,066.20 | 11,723,294,881.29 |
| Interest Income | ||
| Earned Premiums | ||
| Service Charge and Commission Income | ||
| II. Total Operating Cost | 13,709,855,396.51 | 10,666,539,007.22 |
| Including: Operating Cost | 9,563,851,634.78 | 7,135,008,488.79 |
| Interest Expenditures | ||
| Service Charge and Commission Expenses | ||
| Surrender Value | ||
| Net Claims Paid | ||
| Net Amount Withdrawn for Insurance Contract Reserves | ||
| Policyholder Dividend Expense | ||
| Reinsurance Cost | ||
| Taxes and Surcharges | 104,005,456.03 | 83,288,603.07 |
| Sales Expenses | 2,076,706,752.34 | 1,591,164,605.13 |
| Administrative Expenses | 477,344,075.64 | 386,655,575.69 |
| Research and Development Expense | 1,511,900,765.92 | 1,210,847,177.33 |
| Financial Expenses | -189,724,920.01 | 108,763,323.85 |
| Interest Expenses | 78,284,369.59 | 55,665,027.12 |
| Interest Income | -80,171,832.38 | -41,353,705.55 |
| Losses on Assets Impairment | 165,771,631.81 | 150,811,233.36 |
| Add: Other Incomes | 467,750,068.56 | 511,561,355.58 |
| Investment Income (Mark "-" for Loss) | -52,122,659.16 | -21,234,624.42 |
| Including: Investment Income from Affiliates and Joint Ventures | -32,224,908.63 | -28,341,585.19 |
| Incomes from Changes in Fair Value (Mark "-" for Losses) | -64,861,287.24 | |
| Exchange Gains (Mark "-" for Losses) | ||
| Asset Disposal Income (Mark "-" for Loss) | 17,535.97 | 258,708.67 |
| III. Operating Profit (Mark "-" for Loss) | 1,671,657,327.82 | 1,547,341,313.90 |
| Add: Non-operating Revenues | 25,206,031.85 | 34,817,551.32 |
| Less: Non-operating Expenses | 2,525,495.61 | 12,470,065.49 |
| IV. Total Profit (Mark "-" for Total Loss) | 1,694,337,864.06 | 1,569,688,799.73 |
| Less: Income Tax Expense | 118,196,431.38 | 125,783,329.50 |
| V. Net Profit (Mark "-" for Net Loss) | 1,576,141,432.68 | 1,443,905,470.23 |
| (I) Net Profit as a Going Concern (Mark "-" for Net Loss) | 1,576,141,432.68 | 1,443,905,470.23 |
| (II) Net Profit of Discontinued Operation (Mark "-" for Net Loss) | ||
| Net Profit Attributable to the Parent Company's Owner | 1,563,681,387.58 | 1,444,493,831.26 |
| Minority Shareholders' Profit and Loss | 12,460,045.10 | -588,361.03 |
| VI. Net Amount of Other Comprehensive Incomes after Tax | -2,235,307.10 | 1,037,096.85 |
| Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner | -2,235,307.10 | 1,037,096.85 |
| (I) Other Comprehensive Incomes That Cannot Be Subsequently Reclassified as P/L | ||
| 1. Changes Arising from Remeasurement of Net Liabilities or Net Assets in Defined Benefit Plans | ||
| 2. Share in Other Comprehensive Incomes of the Investee That Cannot Be Reclassified as P/L under the Equity Method | ||
| (II) Other Comprehensive Incomes That Will Be Subsequently Reclassified as P/L | -2,235,307.10 | 1,037,096.85 |
| 1. Share in Other Comprehensive Incomes of the Investee That Will Be Subsequently Reclassified as P/L under the Equity Method | ||
| 2. Profit or Loss Arising from Changes in the Fair Value of Financial Assets Available for Sale | ||
| 3. Profit or Loss Arising from Reclassifying Investments Held to Maturity as Financial Assets Available for Sale | ||
| 4. Effective Part of Profit or Loss from Cash Flow Hedging | ||
| 5. Currency Translation Difference | -2,235,307.10 | 1,037,096.85 |
| 6. Others | ||
| Net Amount of Other Comprehensive Incomes after Tax Attributable to Minority Shareholders | ||
| VII. Total Comprehensive Income | 1,573,906,125.58 | 1,444,942,567.08 |
| Total Comprehensive Income Attributable to the Parent Company's Owner | 1,561,446,080.48 | 1,445,530,928.11 |
| Total Comprehensive Income Attributable to Minority Shareholders | 12,460,045.10 | -588,361.03 |
| VIII. Earnings per Share: | ||
| (I) Basic Earnings per Share | 0.54 | 0.50 |
| (II) Diluted Earnings per Share | 0.54 | 0.50 |
Occurred enterprise consolidation under the same control during this period, the net profit realized by consolidated party beforeconsolidation is: RMB. The net profit realized by the consolidated party during previous period is: RMB.
6. Income Statement of the Parent Company from the Beginning of the Year to the End of the ReportingPeriod
Unit: Yuan
| Item Name | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
| I. Total Operating Revenue | 5,576,992,611.46 | 4,043,735,258.60 |
| Less: Operating Cost | 1,455,015,004.83 | 288,635,592.04 |
| Taxes and Surcharges | 67,645,018.11 | 66,811,843.17 |
| Sales Expenses | 1,173,616,922.24 | 1,014,775,829.54 |
| Administrative Expenses | 224,057,849.24 | 201,962,723.77 |
| Research and Development Expense | 1,347,566,767.39 | 1,104,532,182.66 |
| Financial Expenses | -5,455,841.16 | 23,023,817.59 |
| Interest Expenses | 25,612,631.49 | 20,829,917.99 |
| Interest Income | -32,752,271.20 | -1,575,603.23 |
| Losses on Assets Impairment | -33,694,833.36 | 11,203,668.00 |
| Add: Other Incomes | 443,719,222.41 | 492,967,360.46 |
| Investment Income (Mark "-" for Loss) | -30,125,038.40 | -18,924,742.01 |
| Including: Investment Income from Affiliates and Joint Ventures | -31,510,214.43 | -28,397,370.97 |
| : Incomes from Changes in Fair Value (Mark "-" for Losses) | ||
| Asset Disposal Income (Mark "-" for Loss) | 8,194.76 | 174,322.85 |
| II. Operating Profit (Mark "-" for Loss) | 1,761,844,102.94 | 1,807,006,543.13 |
| Add: Non-operating Revenues | 20,752,070.15 | 20,965,767.64 |
| Less: Non-operating Expenses | 573,768.45 | 10,098,026.68 |
| III. Total Profit (Mark "-" for Total Loss) | 1,782,022,404.64 | 1,817,874,284.09 |
| Less: Income Tax Expense | 38,435,556.77 | 135,263,469.24 |
| IV. Net Profit (Mark "-" for Net Loss) | 1,743,586,847.87 | 1,682,610,814.85 |
| (I) Net Profit as a Going Concern (Mark "-" for Net Loss) | 1,743,586,847.87 | 1,682,610,814.85 |
| (II) Net Profit of Discontinued Operation (Mark "-" for Net Loss) | ||
| V. Net Amount of Other Comprehensive Incomes after Tax | ||
| (I) Other Comprehensive Incomes That Cannot Be Subsequently Reclassified as P/L | ||
| 1. Changes Arising from Remeasurement of Net Liabilities or Net Assets in Defined Benefit Plans | ||
| 2. Share in Other Comprehensive Incomes of the Investee That Cannot Be Reclassified as P/L under the Equity Method |
| (II) Other Comprehensive Incomes That Will Be Subsequently Reclassified as P/L | ||
| 1. Share in Other Comprehensive Incomes of the Investee That Will Be Subsequently Reclassified as P/L under the Equity Method | ||
| 2. Profit or Loss Arising from Changes in the Fair Value of Financial Assets Available for Sale | ||
| 3. Profit or Loss Arising from Reclassifying Investments Held to Maturity as Financial Assets Available for Sale | ||
| 4. Effective Part of Profit or Loss from Cash Flow Hedging | ||
| 5. Currency Translation Difference | ||
| 6. Others | ||
| VI. Total Comprehensive Income | 1,743,586,847.87 | 1,682,610,814.85 |
| VII. Earnings per Share: | ||
| (I) Basic Earnings per Share | 0.60 | 0.58 |
| (II) Diluted Earnings per Share | 0.60 | 0.58 |
7. Consolidated Cash Flow Statement from the Beginning of the Year to the End of the Reporting Period
Unit: RMB
| Item Name | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
| I. Cash Flow from Operational Activities: | ||
| Cash from Sales of Merchandise and Provision of Services | 14,096,899,342.48 | 10,440,057,304.60 |
| Net Increase in Customer's Bank Deposits and Interbank Deposits | ||
| Net Increase in Borrowings from the Central Bank | ||
| Net Increase in Borrowings from Other Financial Institutions | ||
| Cash Arising from Receiving Premiums for the Original Insurance Contract | ||
| Net Amount Arising from Reinsurance Business | ||
| Net Increase in Deposits and Investments from Policyholders | ||
| Net Additions to Financial Assets from Disposal at Fair Value Measurement and Its Inclusion in Current Profit or Loss | ||
| Cash Arising from Interests, Service Charges and Commissions | ||
| Net Increase in Borrowings from Banks and Other Financial Institutions | ||
| Net Increase in Repurchase Business Funds | ||
| Tax Refund | 1,175,466,753.02 | 1,067,052,799.19 |
| Other Received Cashes Related to Operational Activities | 179,706,020.35 | 55,867,722.02 |
| Subtotal of Operational Activities Free Cash Inflow | 15,452,072,115.85 | 11,562,977,825.81 |
| Cash Paid for Merchandise and Services | 11,313,035,144.29 | 8,177,127,518.54 |
| Net Increase in Loans and Advances to Customers | ||
| Net Increase in Deposits with Central Bank and Other Financial Institutions | ||
| Cash Paid for Original Insurance Contract Claims | ||
| Cash Paid for Interests, Service Charges and Commissions | ||
| Cash Paid for Policy Dividends | ||
| Cash Paid to and for Employees | 3,147,424,488.01 | 2,225,705,207.91 |
| Cash Paid for Taxes and Surcharges | 1,148,544,384.30 | 1,009,317,685.70 |
| Other Paid Cashes Related to Operational Activities | 1,510,039,968.78 | 1,292,520,319.37 |
| Subtotal of Operational Activities Free Cash Outflow | 17,119,043,985.38 | 12,704,670,731.52 |
| Net Cash Flow from Operational Activities | -1,666,971,869.53 | -1,141,692,905.71 |
| II. Cash Flow from Investment Activities: | ||
| Cash Arising from Disposal of Investments | 146,950,000.00 | 62,960,476.45 |
| Cash Arising from Investment Incomes | 1,738,010.28 | 8,104,273.12 |
| Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 552,893.76 | 1,552,766.02 |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | ||
| Other Received Cashes Related to Investment Activities | 3,254,123.87 | 33,252,642.22 |
| Investment Activities Free Cash Inflow Subtotal | 152,495,027.91 | 105,870,157.81 |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 389,636,120.07 | 242,841,832.28 |
| Cash Paid for Investments | 144,300,000.00 | 121,796,449.00 |
| Net Increase in Pledge Loans | ||
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | 56,408,605.39 | |
| Other Paid Cashes Related to Investment Activities | 100,527,143.08 | 997,312.35 |
| Investment Activities Free Cash Outflow Subtotal | 690,871,868.54 | 365,635,593.63 |
| Net Amount of Cash Flow from Investment Activities | -538,376,840.63 | -259,765,435.82 |
| III. Cash Flow from Financing Activities: | ||
| Cash Arising from Absorbing Investments | 77,742,285.10 | 40,773,116.00 |
| Including: Cash Arising from Subsidiaries Absorbing Investments by Minority Shareholders | 77,742,285.10 | 40,773,116.00 |
| Cash Arising from Borrowings | 4,608,755,547.11 | 3,423,644,986.19 |
| Cash Arising from Bonds Issue | ||
| Other Received Cashes Related to Financing Activities | 1,073,755,819.97 | 364,546,900.00 |
| Financing Activities Free Cash Inflow Subtotal | 5,760,253,652.18 | 3,828,965,002.19 |
| Cash Paid for Debts Repayment | 3,615,177,763.81 | 1,878,090,687.31 |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 650,902,100.63 | 344,872,157.65 |
| Including: Dividends and Profits Paid to Minority Shareholders by Subsidiaries | ||
| Other Paid Cashes Related to Financing Activities | 912,488,000.04 | 629,723,815.79 |
| Financing Activities Free Cash Outflow Subtotal | 5,178,567,864.48 | 2,852,686,660.75 |
| Net Amount of Cash Flow from Financing Activities | 581,685,787.70 | 976,278,341.44 |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | 59,968,947.69 | -49,317,751.79 |
| V. Net Increase in Cash and Cash Equivalents | -1,563,693,974.77 | -474,497,751.88 |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 3,062,678,993.88 | 2,075,176,785.56 |
| VI. Cash and Cash Equivalents at the End of the Period | 1,498,985,019.11 | 1,600,679,033.68 |
8. Cash Flow Statement of the Parent Company from the Beginning of the Year to the End of the ReportingPeriod
Unit: RMB
| Item Name | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
| I. Cash Flow from Operational Activities: | ||
| Cash from Sales of Merchandise and Provision of Services | 8,565,255,144.00 | 3,151,052,612.32 |
| Tax Refund | 440,611,381.06 | 492,967,360.46 |
| Other Received Cashes Related to Operational Activities | 21,008,777.53 | 16,687,704.93 |
| Subtotal of Operational Activities Free Cash Inflow | 9,026,875,302.59 | 3,660,707,677.71 |
| Cash Paid for Merchandise and Services | 1,529,294,174.11 | 87,945,929.82 |
| Cash Paid to and for Employees | 1,986,373,244.95 | 1,510,598,490.80 |
| Cash Paid for Taxes and Surcharges | 839,005,205.65 | 796,146,139.81 |
| Other Paid Cashes Related to Operational Activities | 800,738,387.79 | 740,565,784.34 |
| Subtotal of Operational Activities Free Cash Outflow | 5,155,411,012.50 | 3,135,256,344.77 |
| Net Cash Flow from Operational Activities | 3,871,464,290.09 | 525,451,332.94 |
| II. Cash Flow from Investment Activities: | ||
| Cash Arising from Disposal of Investments | 107,950,000.00 | 52,912,476.45 |
| Cash Arising from Investment Incomes | 1,385,176.03 | 5,627,365.05 |
| Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 66,112,836.14 | 529,006.41 |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | ||
| Other Received Cashes Related to Investment Activities | 29,536,675.15 | 1,592,642.22 |
| Investment Activities Free Cash Inflow Subtotal | 204,984,687.32 | 60,661,490.13 |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 91,063,022.15 | 108,818,341.54 |
| Cash Paid for Investments | 453,686,250.00 | 736,185,000.00 |
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | ||
| Other Paid Cashes Related to Investment Activities | ||
| Investment Activities Free Cash Outflow Subtotal | 544,749,272.15 | 845,003,341.54 |
| Net Amount of Cash Flow Generated by Investment Activities | -339,764,584.83 | -784,341,851.41 |
| III. Cash Flow from Financing Activities: | ||
| Cash Arising from Absorbing Investments | ||
| Cash Arising from Borrowings | 1,488,603,047.41 | 690,000,000.00 |
| Cash Arising from Bonds Issue | ||
| Other Received Cashes Related to Financing Activities | 111,547,737.65 | 77,735,148.36 |
| Financing Activities Free Cash Inflow Subtotal | 1,600,150,785.06 | 767,735,148.36 |
| Cash Paid for Debts Repayment | 950,000,000.00 | 550,000,000.00 |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 602,162,751.51 | 311,948,216.34 |
| Other Paid Cashes Related to Financing Activities | 4,041,706,031.13 | 398,406,311.70 |
| Financing Activities Free Cash Outflow Subtotal | 5,593,868,782.64 | 1,260,354,528.04 |
| Net Amount of Cash Flow from Financing Activities | -3,993,717,997.58 | -492,619,379.68 |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | -115,776.35 | -128,479.57 |
| V. Net Increase in Cash and Cash Equivalents | -462,134,068.67 | -751,638,377.72 |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 524,670,812.68 | 792,226,544.55 |
| VI. Cash and Cash Equivalents at the End of the Period | 62,536,744.01 | 40,588,166.83 |
II. Audit Reports
Has the Third Quarter Report been audited?
□ Yes √ No
The Third Quarter Report of the Company has not been audited.
Zhejiang Dahua Technology Co., Ltd.
Chairman: Fu Liquan
October 26, 2018