Hangzhou Robam Appliances Co., Ltd.
Q3 2020 Report
October 2020
Chapter 1 Important Notes
The Board of Directors, the Board of Supervisors, as well as the directors, supervisorsand senior management of Hangzhou Robam Appliances Co., Ltd. (the Company) herebyguarantee that there are no false representations, misleading statements, or materialomissions in this Quarterly Report (“the Report”), and are severally and jointly liable for theauthenticity, accuracy and completeness of the information contained herein.
All the directors attended a Board meeting during which they reviewed the Report.
Ren Jianhua, the head of the Company, Zhang Guofu, the person in charge of theCompany’s accounting, and Zhang Guofu, the head of the accounting department (theaccountant in charge) hereby declare and warrant that the financial report contained in theReport is authentic, accurate, and complete.
Chapter 2 Company Profile
I. Key Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years?
□ Yes √ No
Page 3 of 31
| End of the reporting period | End of last year | Change | ||||
| Total assets (RMB) | 11,812,914,362.18 | 10,651,922,572.87 | 10.90% | |||
| Net assets attributable to the shareholders of the listed company (RMB) | 7,512,715,959.96 | 6,864,388,881.46 | 9.44% | |||
| The reporting period | YoY change | From the beginning of the year to the end of the reporting period | YoY change | |||
| Operating income (RMB) | 2,415,077,732.21 | 15.13% | 5,626,250,068.00 | 0.02% | ||
| Net profit attributable to shareholders of the listed company (RMB) | 510,521,854.21 | 22.95% | 1,122,839,103.50 | 3.43% | ||
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains/losses (RMB) | 505,555,890.56 | 23.07% | 1,056,876,322.61 | 2.28% | ||
| Net cash flow from operating activities (RMB) | 533,264,051.72 | 41.63% | 940,951,185.28 | -9.11% | ||
| Basic earnings per share (EPS) (RMB/share) | 0.54 | 22.73% | 1.18 | 3.51% | ||
| Diluted EPS (RMB/share) | 0.54 | 22.73% | 1.18 | 3.51% | ||
| Weighted average return on net assets | 7.03% | 0.17% | 15.56% | -1.81% | ||
Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Not Applicable
In RMB
| Item | Amount from the beginning of the year to the end of the reporting period | Description |
| Gains and losses on disposal of non-current assets (including the part written-off with provision for asset impairment accrued) | 45,574.92 | |
| Government subsidy included in current gains and losses (except the government subsidy closely related to the Company’s business and enjoyed by quota or ration in accordance with the unified | 79,617,676.11 |
Page 4 of 31national standard)
| national standard) | ||
| Other non-operating revenues and expenses except the above items | -1,096,881.83 | |
| Less: Affected amount of income tax | 12,256,226.64 | |
| Affected amount of minority shareholders’ equity (after tax) | 347,361.67 | |
| Total | 65,962,780.89 | -- |
It is necessary to explain the reason why items of the non-recurring gains and losses determined according to definitions in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public — Non-recurringGains and Losses (referred to as “Announcement No.1”) and items of the non-recurring gains and losses listed in the AnnouncementNo. 1 are defined as recurring gains and losses.
□ Applicable √ Not Applicable
During the reporting period, there is no circumstance that the items of non-recurring gains and losses defined and enumerated inaccordance with the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic - Non-recurring Gains and Losses are defined as recurring gains and losses.II. Total Number of Shareholders and Shareholdings of the Top Ten Shareholders at the Endof the Reporting Period
1. Total number of common shareholders and preferred shareholders with the voting rights recovered andshareholding of the top 10 shareholders
Unit: share
| Total number of common shareholders at the end of the reporting period | 59,361 | Total number of preferred shareholders with the voting rights recovered at the end of reporting period (if any) | 0 | ||||||
| Shareholding of the top 10 shareholders | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding ratio | Number of shares | Number of shares subject to sales restrictions | Pledged or frozen shares | ||||
| Status | Number | ||||||||
| Hangzhou Robam Industrial Group Co., Ltd. | Domestic non-state-owned corporation | 49.68% | 471,510,000 | ||||||
| Hong Kong Securities Clearing Company Limited | Overseas corporation | 12.91% | 122,501,103 | ||||||
Page 5 of 31Shen Guoying
| Shen Guoying | Domestic natural person | 1.29% | 12,240,000 | |||
| TEMASEK FULLERTON ALPHA PTE LTD | Overseas corporation | 1.13% | 10,733,377 | |||
| Hangzhou Jinchuang Investment Co., Ltd. | Domestic non-state-owned corporation | 1.00% | 9,451,985 | |||
| Norges Bank-Equity Fund | Overseas corporation | 0.99% | 9,440,215 | |||
| Hangzhou Yinchuang Investment Co., Ltd. | Domestic non-state-owned corporation | 0.67% | 6,318,000 | |||
| Ren Jianhua | Domestic natural person | 0.62% | 5,923,150 | 4,442,362 | ||
| Central Huijin Investment Limited | State-owned corporation | 0.60% | 5,685,810 | |||
| Aberdeen Standard Investments (Asia) Co., Ltd. - Aberdeen Standard - China A-share Equity Fund | Overseas corporation | 0.58% | 5,521,017 | |||
| Shareholdings of the top 10 shareholders not subject to sales restrictions | ||||||
| Name of shareholder | Number of shares held not subject to sales restrictions | Type of share | ||||
| Type of share | Number | |||||
| Hangzhou Robam Industrial Group Co., Ltd. | 471,510,000 | RMB ordinary shares | 471,510,000 | |||
| Hong Kong Securities Clearing Company Limited | 122,501,103 | RMB ordinary shares | 122,501,103 | |||
| Shen Guoying | 12,240,000 | RMB ordinary shares | 12,240,000 | |||
Page 6 of 31TEMASEK FULLERTON ALPHAPTE LTD
| TEMASEK FULLERTON ALPHA PTE LTD | 10,733,377 | RMB ordinary shares | 10,733,377 |
| Hangzhou Jinchuang Investment Co., Ltd. | 9,451,985 | RMB ordinary shares | 9,451,985 |
| Norges Bank-Equity Fund | 9,440,215 | RMB ordinary shares | 9,440,215 |
| Hangzhou Yinchuang Investment Co., Ltd. | 6,318,000 | RMB ordinary shares | 6,318,000 |
| Central Huijin Investment Limited | 5,685,810 | RMB ordinary shares | 5,685,810 |
| Aberdeen Standard Investments (Asia) Co., Ltd. - Aberdeen Standard - China A-share Equity Fund | 5,521,017 | RMB ordinary shares | 5,521,017 |
| Canada Pension Plan Investment Board-Equity Fund | 5,256,088 | RMB ordinary shares | 5,256,088 |
| Description of the associated relationship or consistent actions of the above shareholders | Mr. Ren Jianhua is the controlling shareholder of the Company, shareholder of Hangzhou Robam Industrial Group Co., Ltd., and the actual controller of Hangzhou Jinchuang Investment Co., Ltd.; and the natural person shareholder, Shen Guoying, is his wife. Therefore, there is a possibility that these shareholders will act in concert. | ||
| Description of the top 10 shareholders engaging in securities margin trading (if any) | Not Applicable | ||
Did any of the top 10 common shareholders and the top 10 common shareholders not subject to sales restrictions of the Companyhave any agreed repurchase trading during the reporting period?
□ Yes √ No
There was no agreed repurchase trading between the top 10 common shareholders and the top 10 common shareholders not subject tosales restrictions of the Company during the reporting period.
2. Total number of the Company’s preferred shareholders and shareholding of the top 10 preferredshareholders
□ Applicable √ Not Applicable
Chapter 3 Significant MattersI. Changes in Major Financial Data and Financial Indicators during the Reporting Periodand Their Reasons
√ Applicable □ Not Applicable
1. Balance sheet items
At the end of the reporting period, the notes receivable increased by 96.02% and the accounts receivable financing decreased by 100%as compared with those at the beginning of the year, mainly due to reclassification of accounting subject.At the end of the reporting period, prepayments increased by 73.01% as compared with that at the beginning of the year, mainly dueto the increase in prepayments for materials.At the end of the reporting period, other receivables decreased by 33.65% as compared with that at the beginning of the year, mainlydue to the fact that dividends receivable decreased by 100% as compared with that at the beginning of the year and no dividendsreceivable occurred in the period.At the end of the reporting period, projects under construction increased by 37.22% as compared with that at the beginning of theyear, mainly due to the investment of Maoshan intelligent manufacturing base project.At the end of the reporting period, the deferred income tax assets increased by 142.42% as compared with that at the beginning of theyear, mainly due to the increase in accrued expenses.At the end of the reporting period, other non-current assets increased by 73.09% as compared with that at the beginning of the year,mainly due to the increase in prepayments for equipment.At the end of the reporting period, accounts payable increased by 32.64% as compared with that at the beginning of the year, mainlydue to the increase in purchase amount payables.At the end of the reporting period, advance receipts decreased by 100% and the contract liabilities increased by 100% as comparedwith those at the beginning of the year, mainly due to reclassification of accounting subject in accordance with the new CAS 14.At the end of the reporting period, the payroll payable decreased by 63.38% as compared with that at the beginning of the year,mainly due to the completion of granting year-end bonuses of the last year.At the end of the reporting period, the taxes payable increased by 320.73% as compared with that at the beginning of the year, mainlydue to the increase in income tax expenses in this reporting period.
2. Income statement items
During the reporting period, other income increased by 31.35% as compared with that during the same period of the previous year,mainly due to the increase in financial subsidy.During the reporting period, investment income decreased by 40.56% as compared with that during the same period of the previousyear, mainly due to the decrease in the bank wealth management income.During the reporting period, non-operating expenditure decreased by 53.94% as compared with that during the same period of theprevious year, mainly due to the decrease in damage and scrapping losses of non-current assets.During the reporting period, minority shareholders' gains and losses increased by 45.55% as compared with that during the sameperiod of the previous year, mainly due to the profit increase of the holding subsidiaries.
3. Cash flow statement items
In the reporting period, net cash flows from investment activities decreased by 129.81% as compared with that in the same period of
the previous year, mainly due to the decrease in the amount recovered from bank wealth management products upon maturity.II. Progress and Influence of Significant Matters, and the Analysis and Explanation onSolutions
□ Applicable √ Not Applicable
Progress in the implementation of shares repurchase
□ Applicable √ Not Applicable
Progress of transferring repurchased shares by means of centralized bidding
□ Applicable √ Not Applicable
III. Commitments Made by the Company’s Actual Controllers, Shareholders, Affiliates,Purchasers and the Company Itself and Other Relevant Parties Not Yet Fulfilled at the Endof the Reporting Period
□ Applicable √ Not Applicable
During the reporting period, there were no commitments made by the Company’s actual controllers, shareholders, affiliates,purchasers and the Company itself and other relevant parties not yet fulfilled at the end of the reporting period.IV. Financial Asset Investment
1. Securities investment
□ Applicable √ Not Applicable
The Company had no securities investment during the reporting period.
2. Derivative investment
□ Applicable √ Not Applicable
The Company had no derivatives investment during the reporting period.V. Progress of Fundraising Investment Projects
□ Applicable √ Not Applicable
VI. Predictions of Operating Results in 2020Warnings and reasons for the prediction of the potential losses in the accumulated net profit from the beginning of the year to the endof the next reporting period or significant changes as compared with that of the same period of the previous year
□ Applicable √ Not Applicable
VII. Material Contracts for Daily Operations
□ Applicable √ Not Applicable
VIII. Entrusted Financial Management
√ Applicable □ Not Applicable
Unit: RMB 10,000
Page 9 of 31
Specific type
| Specific type | Fund source | Amount incurred | Undue balance | Overdue amount not recovered | |
| Bank financial products | Equity fund | 110,000 | 110,000 | 0 | |
| Total | 110,000 | 110,000 | 0 | ||
Specific conditions for high-risk entrusted financial management with significant single amount or low security, comparatively poorliquidity and no guarantee of the capital
□ Applicable √ Not Applicable
Conditions where the capital of entrusted financial management cannot be recovered or may be impaired
□ Applicable √ Not Applicable
IX. Illegal External Guarantees
□ Applicable √ Not Applicable
The Company had no illegal external guarantees during the reporting period.
X. Non-operating Occupation of Funds of the Listed Company by the ControllingShareholder and its Affiliated Parties
□ Applicable √ Not Applicable
There was no non-operating occupation of funds of the listed company by the controlling shareholder and its affiliated parties duringthe reporting period.XI. Registration Form for Receiving Researches, Communications, Interviews and OtherActivities during the Reporting Period
√ Applicable □ Not Applicable
| Date | Venue | Ways of reception | Type of object received | Object received | Main content for discussion and materials provided | Index for the basic information of the research |
| August 28, 2020 | Meeting room | Field research | Organization | See Record of Investor Relations Activity on August 28, 2020 at www.cninfo.com.cn for further information about | ||
Page 10 of 31objects received and main communications
| objects received and main communications | ||||
| September 22, 2020 | Meeting room | Field research | Organization | See Record of Investor Relations Activity on September 22, 2020 at www.cninfo.com.cn for further information about objects received and main communications |
| September 24, 2020 | Meeting room | Field research | Organization | See Record of Investor Relations Activity on September 24, 2020 at www.cninfo.com.cn for further information about objects received and main communications |
Chapter 4 Financial StatementsI. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Hangzhou Robam Appliances Co., Ltd.
September 30, 2020
In RMB
Page 11 of 31
Item
| Item | September 30, 2020 | December 31, 2019 |
| Current assets: | ||
| Monetary capital | 4,302,160,801.19 | 4,054,121,726.23 |
| Deposit reservation for balance | 1,460,000,000.00 | 1,360,000,000.00 |
| Lendings to banks and other financial institutions | ||
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | 1,934,157,347.09 | 986,693,149.40 |
| Accounts receivable | 782,136,847.30 | 725,630,901.28 |
| Accounts receivable financing | 408,972,104.07 | |
| Prepayments | 86,702,230.83 | 50,113,549.84 |
| Receivable premium | ||
| Reinsurance accounts receivable | ||
| Provision of cession receivable | ||
| Other receivables | 73,582,243.83 | 110,899,448.65 |
| Including: Interests receivable | ||
| Dividends receivable | 14,295,039.38 | |
| Redemptory monetary capital for sale | ||
| Inventory | 1,387,935,072.91 | 1,339,176,925.20 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year |
Page 12 of 31
Other current assets
| Other current assets | 16,189,237.81 | |
| Total current assets | 10,026,674,543.15 | 9,051,797,042.48 |
| Non-current assets: | ||
| Loans and advances | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 3,210,849.54 | 4,168,338.79 |
| Investment in other equity instruments | 102,116,023.22 | 102,116,023.22 |
| Other non-current financial assets | ||
| Investment real estate | 105,848.24 | 112,588.34 |
| Fixed assets | 779,157,876.76 | 826,234,929.97 |
| Projects under construction | 373,533,782.45 | 272,211,720.62 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 233,988,739.52 | 219,733,270.51 |
| Development expenses | ||
| Goodwill | 80,589,565.84 | 80,589,565.84 |
| Long-term deferred expenses | 941,882.88 | 523,195.74 |
| Deferred income tax assets | 171,817,770.58 | 70,877,116.09 |
| Other non -current assets | 40,777,480.00 | 23,558,781.27 |
| Total non-current assets | 1,786,239,819.03 | 1,600,125,530.39 |
| Total assets | 11,812,914,362.18 | 10,651,922,572.87 |
| Current liabilities: | ||
| Short-term loans | ||
| Borrowings from the central bank | ||
| Borrowings from banks and other financial institutions | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities |
Page 13 of 31Notes payable
| Notes payable | 544,620,763.64 | 603,308,648.96 |
| Accounts payable | 1,850,478,563.84 | 1,395,061,285.28 |
| Advance receipts | 1,092,261,332.25 | |
| Contract liabilities | 928,913,961.34 | |
| Financial assets sold for repurchase | ||
| Deposits from customers and interbank | ||
| Receivings from vicariously traded securities | ||
| Receivings from vicariously traded securities | ||
| Payroll payable | 44,696,422.54 | 122,070,325.03 |
| Taxes payable | 432,200,692.62 | 102,726,655.21 |
| Other payables | 243,024,036.82 | 241,641,864.89 |
| Including: Interests payable | ||
| Dividends payable | ||
| Fees and commissions payable | ||
| Dividends payable for reinsurance | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 4,043,934,440.80 | 3,557,070,111.62 |
| Non-current liabilities: | ||
| Reserves for insurance contracts | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term accounts payable | ||
| Long-term payroll payable | ||
| Estimated liabilities |
Page 14 of 31Deferred income
| Deferred income | 120,120,518.71 | 114,851,263.30 |
| Deferred income tax liabilities | 5,326,328.40 | 5,717,848.25 |
| Other non-current liabilities | ||
| Total non-current liabilities | 125,446,847.11 | 120,569,111.55 |
| Total liabilities | 4,169,381,287.91 | 3,677,639,223.17 |
| Owner’s equity: | ||
| Capital stock | 949,024,050.00 | 949,024,050.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 401,799,332.67 | 401,799,332.67 |
| Less: treasury share | ||
| Other comprehensive income | -15,157,634.16 | -15,157,634.16 |
| Special reserves | ||
| Surplus reserves | 474,516,412.50 | 474,516,412.50 |
| General risk reserves | ||
| Undistributed profits | 5,702,533,798.95 | 5,054,206,720.45 |
| Total owners' equity attributable to parent company | 7,512,715,959.96 | 6,864,388,881.46 |
| Minority interests | 130,817,114.31 | 109,894,468.24 |
| Total owner's equity | 7,643,533,074.27 | 6,974,283,349.70 |
| Total liabilities and owners' equity | 11,812,914,362.18 | 10,651,922,572.87 |
Legal representative: Ren Jianhua Person in charge of accounting: Zhang GuofuHead of the accounting department: Zhang Guofu
2. Balance Sheet of the Parent Company
In RMB
| Item | September 30, 2020 | December 31, 2019 |
| Current assets: | ||
| Monetary capital | 4,129,961,876.63 | 3,974,490,043.89 |
| Financial assets held for trading | 1,300,000,000.00 | 1,100,000,000.00 |
| Derivative financial assets | ||
| Notes receivable | 1,934,157,347.09 | 974,185,844.67 |
Page 15 of 31Accounts receivable
| Accounts receivable | 730,482,210.55 | 704,246,884.81 |
| Accounts receivable financing | 408,605,906.50 | |
| Prepayments | 65,159,487.60 | 41,005,526.82 |
| Other receivables | 62,985,916.44 | 105,766,154.95 |
| Including: Interests receivable | ||
| Dividends receivable | 14,295,039.38 | |
| Inventory | 1,318,408,586.92 | 1,268,289,683.46 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 12,064,254.50 | |
| Total current assets | 9,541,155,425.23 | 8,588,654,299.60 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 229,716,783.27 | 230,674,272.52 |
| Investment in other equity instruments | 102,116,023.22 | 102,116,023.22 |
| Other non-current financial assets | ||
| Investment real estate | 411,817.24 | 436,960.72 |
| Fixed assets | 752,997,174.82 | 798,954,901.11 |
| Projects under construction | 347,788,706.29 | 271,619,361.89 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 151,134,140.63 | 157,002,023.43 |
| Development expenses | ||
| Goodwill | ||
| Long-term deferred expenses | 855,258.52 | 383,195.74 |
| Deferred income tax assets | 170,429,001.38 | 70,173,783.09 |
| Other non -current assets | 40,777,480.00 | 23,558,781.27 |
Page 16 of 31Total non-current assets
| Total non-current assets | 1,796,226,385.37 | 1,654,919,302.99 |
| Total assets | 11,337,381,810.60 | 10,243,573,602.59 |
| Current liabilities: | ||
| Short-term loans | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 507,227,182.08 | 601,960,648.96 |
| Accounts payable | 1,781,962,236.67 | 1,358,297,550.30 |
| Advance receipts | 983,128,543.51 | |
| Contract liabilities | 871,934,538.16 | |
| Payroll payable | 35,449,688.18 | 97,599,336.20 |
| Taxes payable | 414,837,319.48 | 96,425,637.42 |
| Other payables | 226,379,012.21 | 226,064,422.04 |
| Including: Interests payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 3,837,789,976.78 | 3,363,476,138.43 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term accounts payable | ||
| Long-term payroll payable | ||
| Estimated liabilities | ||
| Deferred income | 102,879,098.71 | 114,851,263.30 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 102,879,098.71 | 114,851,263.30 |
Page 17 of 31Total liabilities
| Total liabilities | 3,940,669,075.49 | 3,478,327,401.73 |
| Owner’s equity: | ||
| Capital stock | 949,024,050.00 | 949,024,050.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 401,754,349.66 | 401,754,349.66 |
| Less: treasury share | ||
| Other comprehensive income | -15,157,634.16 | -15,157,634.16 |
| Special reserves | ||
| Surplus reserves | 474,516,412.50 | 474,516,412.50 |
| Undistributed profits | 5,586,575,557.11 | 4,955,109,022.86 |
| Total owner's equity | 7,396,712,735.11 | 6,765,246,200.86 |
| Total liabilities and owners' equity | 11,337,381,810.60 | 10,243,573,602.59 |
3. Consolidated Income Statement during the Reporting Period
In RMB
| Item | Amount of the current period | Amount of the previous period |
| I. Total operating income | 2,415,077,732.21 | 2,097,606,924.30 |
| Including: Operating income | 2,415,077,732.21 | 2,097,606,924.30 |
| Interest income | ||
| Earned premium | ||
| Fee and commission income | ||
| II. Total operating costs | 1,820,319,752.38 | 1,626,491,205.87 |
| Including: Operating costs | 965,658,522.56 | 929,416,753.93 |
| Interest expenses | ||
| Fee and commission expenses | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Net allotment of reserves for insurance liabilities | ||
| Policy dividend expenditures | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 17,372,120.54 | 16,898,617.83 |
Page 18 of 31Selling expenses
| Selling expenses | 738,667,911.14 | 566,766,627.49 |
| Overhead costs | 76,939,528.27 | 67,127,915.14 |
| R&D expenses | 81,580,590.92 | 76,250,213.58 |
| Financial expenses | -59,898,921.05 | -29,968,922.10 |
| Including: Interest expenses | 4,078,406.12 | |
| Interest income | 65,138,166.62 | 29,217,382.55 |
| Add: other income | 5,861,441.83 | 3,751,701.65 |
| Investment income (“-” for losses) | 14,810,657.55 | 25,609,237.33 |
| Including: Income from investment in joint ventures and affiliated enterprises | 1,281,731.21 | 2,060,171.09 |
| Gains on derecognition of financial assets measured at amortized cost | ||
| Exchange gains (“-” for losses) | ||
| Net exposure hedging gains (“-” for losses) | ||
| Gains from changes in fair value (“-” for losses) | ||
| Losses from credit impairment (“-” for losses) | -3,063,243.12 | -654,094.55 |
| Losses from asset impairment (“-” for losses) | ||
| Gains on disposal of assets (“-” for losses) | 34,185.94 | 330,810.85 |
| III. Operating profits (“-” for losses) | 612,401,022.03 | 500,153,373.71 |
| Add: non-operating income | 136,015.77 | 1,516,796.98 |
| Less: non-operating expenditure | 93,946.13 | 1,002,387.45 |
| IV. Total profits (“-” for total losses) | 612,443,091.67 | 500,667,783.24 |
| Less: income tax expenses | 91,859,781.45 | 78,082,299.02 |
| V. Net profits (“-” for losses) | 520,583,310.22 | 422,585,484.22 |
| (I) By operational sustainability | ||
| 1. Net profits from continuing operations (“-” for net losses) | 520,583,310.22 | 422,585,484.22 |
| 2. Net profits from discontinued operations (“-” for net losses) | ||
| (II) By ownership | ||
| 1. Net profits attributable to the owners of parent company | 510,521,854.21 | 415,223,408.27 |
| 2. Minority shareholders' gains and losses | 10,061,456.01 | 7,362,075.95 |
Page 19 of 31VI. After-tax net amount of other comprehensiveincome
| VI. After-tax net amount of other comprehensive income | ||
| After-tax net amount of other comprehensive income attributable to the owners of parent company | ||
| (I) Other comprehensive income that cannot be reclassified into gains and losses | ||
| 1. Changes in re-measured and defined benefit plans | ||
| 2. Other comprehensive income which cannot be transferred to gains or losses under the equity method | ||
| 3. Changes in fair value of the investment in other equity instruments | ||
| 4. Changes in fair value of the credit risk of the Company | ||
| 5. Others | ||
| (II) Other comprehensive income which will be reclassified into gains and losses | ||
| 1. Other comprehensive income which can be transferred into gains and losses under the equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedge reserve | ||
| 6. Converted difference in foreign currency statements | ||
| 7. Others | ||
| After-tax net amount of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 520,583,310.22 | 422,585,484.22 |
| Total comprehensive income attributable to the owners of parent company | 510,521,854.21 | 415,223,408.27 |
| Total comprehensive income attributable to minority shareholders | 10,061,456.01 | 7,362,075.95 |
Page 20 of 31
VIII. Earnings per share (EPS):
| VIII. Earnings per share (EPS): | ||
| (I) Basic EPS | 0.54 | 0.43 |
| (II) Diluted EPS | 0.54 | 0.43 |
Legal representative: Ren Jianhua Person in charge of accounting: Zhang GuofuHead of the accounting department: Zhang Guofu
4. Income Statement of the Parent Company during the Reporting Period
In RMB
| Item | Amount of the current period | Amount of the previous period |
| I. Operating income | 2,217,408,111.69 | 1,913,478,145.97 |
| Less: operating costs | 898,429,235.56 | 870,660,956.25 |
| Taxes and surcharges | 16,062,717.80 | 14,928,367.84 |
| Selling expenses | 657,797,328.71 | 494,289,468.62 |
| Administrative expenses | 57,066,462.69 | 46,258,967.41 |
| R&D expenses | 77,531,328.38 | 74,014,215.72 |
| Financial expenses | -58,473,545.22 | -29,842,457.70 |
| Including: Interest expenses | 4,078,406.12 | |
| Interest income | 63,943,177.36 | 28,950,692.46 |
| Add: other income | 5,282,428.53 | 3,432,351.15 |
| Investment income (“-” for losses) | 13,267,568.13 | 23,532,336.60 |
| Including: Income from investment in joint ventures and affiliated enterprises | 1,281,731.21 | 2,060,171.09 |
| Gains on derecognition of financial assets measured at amortized cost | ||
| Net exposure hedging gains (“-” for losses) | ||
| Gains from changes in fair value (“-” for losses) | ||
| Losses from credit impairment (“-” for losses) | -3,394,324.28 | -1,347,328.85 |
| Losses from asset impairment (“-” for losses) | ||
| Gains on disposal of assets (“-” for losses) | 4,757.33 | 51,884.79 |
| II. Operating profits (“-” for losses) | 584,155,013.48 | 468,837,871.52 |
| Add: non-operating income | 114,126.10 | 1,450,130.00 |
| Less: non-operating expenditure | 3,017.72 | 75,873.91 |
Page 21 of 31III. Total profits (“-” for total losses)
| III. Total profits (“-” for total losses) | 584,266,121.86 | 470,212,127.61 |
| Less: income tax expenses | 87,622,662.42 | 70,416,452.79 |
| IV. Net profits (“-” for net losses) | 496,643,459.44 | 399,795,674.82 |
| (I) Net profits from going concern (“-” for net losses) | 496,643,459.44 | 399,795,674.82 |
| (II) Net profits from discontinued operations (“-” for net losses) | ||
| V. After-tax net amount of other comprehensive income | ||
| (I) Other comprehensive income that cannot be reclassified into gains and losses | ||
| 1. Changes in re-measured and defined benefit plans | ||
| 2. Other comprehensive income which cannot be transferred to gains or losses under the equity method | ||
| 3. Changes in fair value of the investment in other equity instruments | ||
| 4. Changes in fair value of the credit risk of the Company | ||
| 5. Others | ||
| (II) Other comprehensive income which will be reclassified into gains and losses | ||
| 1. Other comprehensive income which can be transferred into gains and losses under the equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedge reserve | ||
| 6. Converted difference in foreign currency statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 496,643,459.44 | 399,795,674.82 |
| VII. EPS: |
Page 22 of 31(I) Basic EPS
| (I) Basic EPS | ||
| (II) Diluted EPS |
5. Consolidated Income Statement from the Beginning of the Year to the End of the Reporting Period
In RMB
| Item | Amount of the current period | Amount of the previous period |
| I. Total operating income | 5,626,250,068.00 | 5,625,020,807.26 |
| Including: Operating income | 5,626,250,068.00 | 5,625,020,807.26 |
| Interest income | ||
| Earned premium | ||
| Fee and commission income | ||
| II. Total operating costs | 4,375,042,721.71 | 4,439,593,417.70 |
| Including: Operating costs | 2,416,387,099.14 | 2,528,818,716.74 |
| Interest expenses | ||
| Fee and commission expenses | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Net allotment of reserves for insurance liabilities | ||
| Policy dividend expenditures | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 42,560,354.77 | 46,357,616.21 |
| Selling expenses | 1,631,347,208.90 | 1,556,811,534.10 |
| Overhead costs | 193,024,850.25 | 183,299,443.91 |
| R&D expenses | 199,404,623.54 | 183,879,999.71 |
| Financial expenses | -107,681,414.89 | -59,573,892.97 |
| Including: Interest expenses | 4,217,690.38 | 201,831.98 |
| Interest income | 112,742,985.04 | 59,525,309.87 |
| Add: other income | 79,587,676.11 | 60,590,883.49 |
| Investment income (“-” for losses) | 38,912,889.91 | 65,468,211.82 |
| Including: Income from investment in joint ventures and affiliated enterprises | -957,489.25 | 2,129,369.04 |
| Gains on derecognition of financial assets measured at amortized cost |
Page 23 of 31Exchange gains (“-” for losses)
| Exchange gains (“-” for losses) | ||
| Net exposure hedging gains (“-” for losses) | ||
| Gains from changes in fair value (“-” for losses) | ||
| Losses from credit impairment (“-” for losses) | -21,575,012.71 | -9,606,123.78 |
| Losses from asset impairment (“-” for losses) | ||
| Gains on disposal of assets (“-” for losses) | 45,574.92 | 34,138.62 |
| III. Operating profits (“-” for losses) | 1,348,178,474.52 | 1,301,914,499.71 |
| Add: non-operating income | 722,368.94 | 3,128,743.07 |
| Less: non-operating expenditure | 1,789,250.77 | 3,884,831.50 |
| IV. Total profits (“-” for total losses) | 1,347,111,592.69 | 1,301,158,411.28 |
| Less: income tax expenses | 203,349,843.12 | 201,156,337.17 |
| V. Net profits (“-” for losses) | 1,143,761,749.57 | 1,100,002,074.11 |
| (I) By operational sustainability | ||
| 1. Net profits from continuing operations (“-” for net losses) | 1,143,761,749.57 | 1,100,002,074.11 |
| 2. Net profits from discontinued operations (“-” for net losses) | ||
| (II) By ownership | ||
| 1. Net profits attributable to the owners of parent company | 1,122,839,103.50 | 1,085,627,402.47 |
| 2. Minority shareholders' gains and losses | 20,922,646.07 | 14,374,671.64 |
| VI. After-tax net amount of other comprehensive income | ||
| After-tax net amount of other comprehensive income attributable to the owners of parent company | ||
| (I) Other comprehensive income that cannot be reclassified into gains and losses | ||
| 1. Changes in re-measured and defined benefit plans | ||
| 2. Other comprehensive income which cannot be transferred to gains or losses under the equity method | ||
| 3. Changes in fair value of the investment in other equity instruments | ||
| 4. Changes in fair value of the credit risk of the Company |
Page 24 of 31
5. Others
| 5. Others | ||
| (II) Other comprehensive income which will be reclassified into gains and losses | ||
| 1. Other comprehensive income which can be transferred into gains and losses under the equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedge reserve | ||
| 6. Converted difference in foreign currency statements | ||
| 7. Others | ||
| After-tax net amount of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 1,143,761,749.57 | 1,100,002,074.11 |
| Total comprehensive income attributable to the owners of parent company | 1,122,839,103.50 | 1,085,627,402.47 |
| Total comprehensive income attributable to minority shareholders | 20,922,646.07 | 14,374,671.64 |
| VIII. Earnings per share (EPS): | ||
| (I) Basic EPS | 1.18 | 1.14 |
| (II) Diluted EPS | 1.18 | 1.14 |
Legal representative: Ren Jianhua Person in charge of accounting: Zhang GuofuHead of the accounting department: Zhang Guofu
6. Income Statement of the Parent Company from the Beginning of the Year to the End of the ReportingPeriod
In RMB
| Item | Amount of the current period | Amount of the previous period |
| I. Operating income | 5,198,322,792.46 | 5,173,271,472.64 |
| Less: operating costs | 2,248,014,439.91 | 2,378,159,108.17 |
Page 25 of 31Taxes and surcharges
| Taxes and surcharges | 39,037,688.05 | 41,260,532.79 |
| Selling expenses | 1,469,921,060.61 | 1,362,174,692.49 |
| Administrative expenses | 139,284,068.19 | 127,376,083.37 |
| R&D expenses | 190,474,563.55 | 177,725,385.19 |
| Financial expenses | -105,475,691.78 | -57,647,916.09 |
| Including: Interest expenses | 4,217,690.38 | 201,831.98 |
| Interest income | 110,584,748.01 | 57,198,018.80 |
| Add: other income | 73,916,808.25 | 55,342,033.44 |
| Investment income (“-” for losses) | 31,888,001.32 | 60,496,673.26 |
| Including: Income from investment in joint ventures and affiliated enterprises | -957,489.25 | 2,129,369.04 |
| Gains on derecognition of financial assets measured at amortized cost | ||
| Net exposure hedging gains (“-” for losses) | ||
| Gains from changes in fair value (“-” for losses) | ||
| Losses from credit impairment (“-” for losses) | -20,109,638.66 | -10,495,755.49 |
| Losses from asset impairment (“-” for losses) | ||
| Gains on disposal of assets (“-” for losses) | 1,639.59 | -244,787.44 |
| II. Operating profits (“-” for losses) | 1,302,763,474.43 | 1,249,321,750.49 |
| Add: non-operating income | 661,224.15 | 2,975,654.06 |
| Less: non-operating expenditure | 1,560,016.94 | 1,169,135.48 |
| III. Total profits (“-” for total losses) | 1,301,864,681.64 | 1,251,128,269.07 |
| Less: income tax expenses | 195,886,122.39 | 187,858,000.66 |
| IV. Net profits (“-” for net losses) | 1,105,978,559.25 | 1,063,270,268.41 |
| (I) Net profits from going concern (“-” for net losses) | 1,105,978,559.25 | 1,063,270,268.41 |
| (II) Net profits from discontinued operations (“-” for net losses) | ||
| V. After-tax net amount of other comprehensive income | ||
| (I) Other comprehensive income that cannot be reclassified into gains and losses | ||
| 1. Changes in re-measured and defined benefit plans | ||
| 2. Other comprehensive income which |
Page 26 of 31cannot be transferred to gains or losses under the equitymethod
| cannot be transferred to gains or losses under the equity method | ||
| 3. Changes in fair value of the investment in other equity instruments | ||
| 4. Changes in fair value of the credit risk of the Company | ||
| 5. Others | ||
| (II) Other comprehensive income which will be reclassified into gains and losses | ||
| 1. Other comprehensive income which can be transferred into gains and losses under the equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedge reserve | ||
| 6. Converted difference in foreign currency statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 1,105,978,559.25 | 1,063,270,268.41 |
| VII. EPS: | ||
| (I) Basic EPS | ||
| (II) Diluted EPS |
7. Consolidated Cash Flow Statement from the Beginning of the Year to the End of Reporting Period
In RMB
| Item | Amount of the current period | Amount of the previous period |
| I. Cash flow from operating activities: | ||
| Cash received for the sale of goods and rendering of services | 5,536,983,526.17 | 5,597,588,789.97 |
| Net increase in clients’ deposits and deposits from banks and other financial institutions | ||
| Net increase in borrowings from the central bank |
Page 27 of 31Net increase in borrowings from other financialinstitutions
| Net increase in borrowings from other financial institutions | ||
| Cash received from receiving insurance premium of the original insurance contract | ||
| Net cash from receiving reinsurance premium | ||
| Net increase in deposits and investment of insured persons | ||
| Cash received from interests, fees and commissions | ||
| Net increase in borrowed funds | ||
| Net increase in repurchase business funds | ||
| Net cash received from vicariously traded securities | ||
| Refunds of taxes | 548,519.01 | |
| Cash received relating to other operating activities | 224,148,875.21 | 137,720,406.72 |
| Subtotal of cash inflow from the operating activities | 5,761,132,401.38 | 5,735,857,715.70 |
| Cash paid for purchased products and received services | 2,612,978,014.34 | 2,348,446,926.51 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits with the central bank and other financial institutions | ||
| Cash paid for claims of original insurance contract | ||
| Net increase in lending funds | ||
| Cash paid for interests, fees and commissions | ||
| Cash paid for policy dividends | ||
| Cash paid to and on behalf of employees | 546,701,880.29 | 522,706,852.79 |
| Cash paid for taxes | 480,586,939.03 | 627,369,800.29 |
| Cash paid related to other operating activities | 1,179,914,382.44 | 1,202,119,273.35 |
| Subtotal of cash outflow from operating activities | 4,820,181,216.10 | 4,700,642,852.94 |
| Net cash flow from operating activities | 940,951,185.28 | 1,035,214,862.76 |
| II. Cash flow from investing activities: | ||
| Cash received from sales of investments | 1,320,000,000.00 | 2,487,500,000.00 |
| Cash received from return on investments | 55,619,492.71 | 72,410,430.17 |
| Net cash received from the disposal of fixed assets, intangible assets and other long-term assets | 168,392.00 | 517,944.71 |
| Net cash received from disposal of subsidiaries and other business entities |
Page 28 of 31Cashes received related to other investmentactivities
| Cashes received related to other investment activities | ||
| Subtotal of cash inflow from investing activities | 1,375,787,884.71 | 2,560,428,374.88 |
| Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 184,150,960.67 | 210,767,796.17 |
| Cash paid to investments | 1,420,000,000.00 | 1,578,500,000.00 |
| Net increase in pledged loans | ||
| Net cash from subsidiaries and other operating entities | 5,000,000.00 | |
| Cash paid related to other investment activities | ||
| Subtotal of cash outflow from investing activities | 1,604,150,960.67 | 1,794,267,796.17 |
| Net cash flow from investment activities | -228,363,075.96 | 766,160,578.71 |
| III. Cash flow from financing activities: | ||
| Cash from acquiring investments | ||
| Including: Cash received by subsidiaries from investments of minority shareholders | ||
| Cash from acquiring debts | ||
| Other cashes received in relation to financing activities | ||
| Subtotal of cash inflow from financing activities | ||
| Cash repayments of debts | ||
| Cash paid for distribution of dividends, profits or interest expenses | 474,512,025.00 | 759,219,240.00 |
| Including: Dividends or profits paid by subsidiaries to minority shareholders | ||
| Other cashes paid in relation to financing activities | ||
| Subtotal of cash outflow from financing activities | 474,512,025.00 | 759,219,240.00 |
| Net cash flow from financing activities | -474,512,025.00 | -759,219,240.00 |
| IV. Effect of change in exchange rate on cash and cash equivalents | -125,536.04 | 777,298.72 |
| V. Net increase in cash and cash equivalents | 237,950,548.28 | 1,042,933,500.19 |
| Add: Opening balance of cash and cash equivalents | 4,029,296,265.50 | 2,177,219,858.85 |
| VI. Closing balance of cash and cash equivalents | 4,267,246,813.78 | 3,220,153,359.04 |
8. Cash Flow Statement of Parent Company from the Beginning of the Year to the End of Reporting Period
In RMB
Page 29 of 31
Item
| Item | Amount of the current period | Amount of the previous period |
| I. Cash flow from operating activities: | ||
| Cash received for the sale of goods and rendering of services | 5,124,617,220.03 | 5,177,455,334.94 |
| Refunds of taxes | ||
| Cash received relating to other operating activities | 176,456,320.02 | 115,072,030.83 |
| Subtotal of cash inflow from the operating activities | 5,301,073,540.05 | 5,292,527,365.77 |
| Cash paid for purchased products and received services | 2,479,264,199.73 | 2,258,792,791.19 |
| Cash paid to and on behalf of employees | 435,619,214.33 | 408,109,017.82 |
| Cash paid for taxes | 444,445,218.17 | 566,307,011.96 |
| Cash paid related to other operating activities | 1,029,718,579.26 | 1,025,411,970.55 |
| Subtotal of cash outflow from operating activities | 4,389,047,211.49 | 4,258,620,791.52 |
| Net cash flow from operating activities | 912,026,328.56 | 1,033,906,574.25 |
| II. Cash flow from investing activities: | ||
| Cash received from sales of investments | 900,000,000.00 | 2,130,000,000.00 |
| Cash received from return on investments | 48,392,109.16 | 67,438,891.61 |
| Net cash received from the disposal of fixed assets, intangible assets and other long-term assets | 78,392.00 | 517,944.71 |
| Net cash received from disposal of subsidiaries and other business entities | ||
| Cashes received related to other investment activities | ||
| Subtotal of cash inflow from investing activities | 948,470,501.16 | 2,197,956,836.32 |
| Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 139,385,632.39 | 194,211,274.34 |
| Cash paid to investments | 1,100,000,000.00 | 1,204,500,000.00 |
| Net cash from subsidiaries and other operating entities | 5,000,000.00 | |
| Cash paid related to other investment activities | ||
| Subtotal of cash outflow from investing activities | 1,239,385,632.39 | 1,403,711,274.34 |
| Net cash flow from investment activities | -290,915,131.23 | 794,245,561.98 |
| III. Cash flow from financing activities: |
Page 30 of 31Cash from acquiring investments
| Cash from acquiring investments | ||
| Cash from acquiring debts | ||
| Other cashes received in relation to financing activities | ||
| Subtotal of cash inflow from financing activities | ||
| Cash repayments of debts | ||
| Cash paid for distribution of dividends, profits or interest expenses | 474,512,025.00 | 759,219,240.00 |
| Other cashes paid in relation to financing activities | ||
| Subtotal of cash outflow from financing activities | 474,512,025.00 | 759,219,240.00 |
| Net cash flow from financing activities | -474,512,025.00 | -759,219,240.00 |
| IV. Effect of change in exchange rate on cash and cash equivalents | -125,598.56 | 777,331.45 |
| V. Net increase in cash and cash equivalents | 146,473,573.77 | 1,069,710,227.68 |
| Add: Opening balance of cash and cash equivalents | 3,951,074,513.16 | 2,000,183,395.66 |
| VI. Closing balance of cash and cash equivalents | 4,097,548,086.93 | 3,069,893,623.34 |
II. Description on Adjustments in Financial Statement
1. Relevant financial statement items at the beginning of 2020 when the new CAS 14 and the adjustmentsstipulated in the new CAS 21-Lease apply for the first time
√ Applicable □ Not Applicable
Should the balance sheet items be adjusted at the beginning of the year?
√ Yes □ No
Consolidated Balance Sheet
In RMB
| Item | December 31, 2019 | January 1, 2020 | Adjusted figure |
| Advance receipts | 1,092,261,332.25 | 0.00 | -1,092,261,332.25 |
| Contract liabilities | 1,092,261,332.25 | 1,092,261,332.25 |
Balance Sheet of the Parent Company
In RMB
| Item | December 31, 2019 | January 1, 2020 | Adjusted figure |
| Advance receipts | 983,128,543.51 | 0.00 | -983,128,543.51 |
| Contract liabilities | 983,128,543.51 | 983,128,543.51 |
2. Description on early comparative data at the beginning of 2020 when the new CAS 14 and the retroactiveadjustments stipulated in the new CAS 21-Lease apply for the first time
□ Applicable √ Not Applicable
III. Audit ReportWhether the Q3 report has been audited？
□ Yes √ No
The Q3 report of the Company has not been audited.