2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Zhejiang Dahua Technology Co., Ltd.
2019 Q3 Report
October 2019
1
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Section I Important Notice
The Board of Directors, the Board of Supervisors, directors,
supervisors and senior management members of the Company hereby
guarantee that the information presented in this quarterly report is
authentic, accurate, complete and free of any false records, misleading
statements or material omissions, and they will bear joint and several
liabilities for such information.
All the directors attended the meeting of the Board of Directors for
the deliberation of 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 in the quarterly report are authentic, accurate and complete.
This document is a translated version of the Chinese version 2019 Q3 Financial Report (“2019 年第三季度报告全文”),
and the published Q3 report in the Chinese version shall prevail. The complete published Chinese 2019 Q3 Financial
Report may be obtained at http://www.cninfo.com.cn.
2
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Section II Basic Information about the Company
I. Key Accounting Data and Financial Indicators
Whether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not
□ Yes √ No
Increase/Decrease at the End of the
At The End Of The At the End of the
Current Reporting Period Compared
Current Reporting Period Previous Year
with the End of the Previous Year
Total Assets (RMB) 27,920,148,513.49 26,350,599,778.15 5.96%
Net Assets Attributable to
Shareholders of the Listed 14,130,311,182.99 12,618,758,918.48 11.98%
Company (RMB)
Increase/Decrease of
the Period from the
Increase/Decrease of From the
Beginning of the Year to
the Current Reporting Beginning of the
The Current the End of the Current
Period Compared with Year to the End of
Reporting Period Reporting Period
the Same Period of the Current
Compared with the
the Previous Year Reporting Period
Same Period of the
Previous Year
Operating Income (RMB) 5,621,668,726.34 7.76% 16,428,235,097.23 9.30%
Net Profit Attributable to
Shareholders of the Listed 638,471,475.06 32.53% 1,877,352,423.80 20.06%
Company (RMB)
Net Profit Attributable to
Shareholders of the Listed
Company after Deducting 590,869,606.63 14.56% 1,729,521,354.66 6.55%
non-recurring Gains and
Losses (RMB)
Net Cash Flow Generated by
332,230,140.64 158.22% -538,236,952.24 67.71%
Operational Acti vities (RMB)
Basic Earnings per Share
0.22 29.41% 0.64 18.52%
(RMB/Share)
3
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Diluted Earnings per Share
0.22 29.41% 0.64 18.52%
(RMB/Share)
Weighted Average ROE 4.60% 0.30% 13.99% -0.24%
Non-recurring Gains and Losses Items and Their Amounts
√ Applicable □ Not applicable
(in RMB, e xcept per share data, unaudited)
The Amount from the
Beginning of the Year to
Item Name Note
the End of the Current
Reporting Period
Profits or losses from disposal of non-current assets (including the write-off for the
10,509,250.47
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 138,966,305.77
and issued in the quota or quantity based on the national standards
Profits and losses resulting from the changes in fair value for holding trading
financial assets, derivative financial assets and trading financial liabilities,
derivative financial liabilities and investment income from disposal of trading
41,772,143.06
financial assets, derivative financial assets, trading financial liabilities, derivative
financial liabilities, and other obligatory right investment, excluding the effective
hedging businesses related to the regular business operation of the Company
Non-Operating Revenue and Expenses other than the above 3,269,138.09
Less: Impact of income tax 32,165,761.36
Impact of minority equity (after ta x) 14,520,006.89
Total 147,831,069.14 --
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement on Information
Disclosure for Companies Offering Their Securities to Public - Non-recurring Gains and Losses, or non-recurring gains
and losses items listed in the said document defined as recurring ones, please specify the reasons.
□ Applicable √ Not applicable
In the reporting period, the Company did not define any non-recurring gains and losses items defined and listed in the No.
1 Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to Public - Non-recurring
Gains and Losses, as recurring gains and losses items.
4
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
II. The Total Number of Shareholder and the Holdings of the Top 10 Shareholders at
the End of the Current Reporting Period
1. The number of common shareholders and preferred shareholders whose voting rights have
been recovered and the shareholdings of the top 10 shareholders
Unit: share
Total Number Of Common
Total Number of Preferred Shareholders (If Any) Whose Voting
Shareholders At The End Of 106,822 0
Rights have been Recovered at the End of the Reporting Period
The Reporting Period
The shareholdings of the top 10 shareholders
Number of Pledged or Frozen
Shares Held
Nature of Shareholding Number of
Name of Shareholder with Limited
Shareholder Percentage Shares Held State of Shares Number
Sales
Conditions
Domestic
Fu Liquan 36.10% 1,082,081,880 834,736,410 Pledge 201,152,000
Natural Person
Domestic
Zhu Jiangming 6.22% 186,461,490 139,846,117 Pledge 36,504,000
Natural Person
Hong Kong Securities Overseas Legal
4.46% 133,734,769 0
Clearing Co. Ltd. Person
Domestic
Chen Ailing 2.38% 71,262,813 53,447,110
Natural Person
Domestic
Wu Jun 2.31% 69,250,886 51,938,164
Natural Person
Domestic
China Securities
Non-state-owne 1.32% 39,611,241 0
Finance Co., Ltd.
d Legal Person
Central Huijin Asset State-owned
1.05% 31,448,750 0
Management Co., Ltd. Legal Person
Shanghai Greenwoods
Asset Management Co.,
Others 0.97% 28,978,386 0
Ltd. - Greenwoods
Global Fund
Zhejiang Dahua Others 0.88% 26,247,928 0
5
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Technology Co., Ltd. -
Phase III Employee
Stock Ownership Plan
Four One Eight
Combination of National Others 0.69% 20,554,300 0
Social Security Fund
Shareholding list of top ten shareholders without limited sales condition
Number of Shares Held without Limited Type of shares
Name of Shareholder
Sales Condition Type of Shares Number
Fu Liquan 247,345,470 RMB common stock 247,345,470
Hong Kong Securities Clearing Co. Ltd. 133,734,769 RMB common stock 133,734,769
Zhu Jiangming 46,615,373 RMB common stock 46,615,373
China Securities Finance Co., Ltd. 39,611,241 RMB common stock 39,611,241
Central Huijin Asset Management Co.,
31,448,750 RMB common stock 31,448,750
Ltd.
Shanghai Greenwoods Asset
Management Co., Ltd. - Greenwoods 28,978,386 RMB common stock 28,978,386
Global Fund
Zhejiang Dahua Technology Co., Ltd. -
Phase III Employee Stock Ownership 26,247,928 RMB common stock 26,247,928
Plan
Four One Eight Combination of National
20,554,300 RMB common stock 20,554,300
Social Security Fund
Fidelity Investments Management (Hong
20,202,093 RMB common stock 20,202,093
Kong) Limited - funds of customers
BOC - Core Growth Stock Type Security
Investment Fund of China International 19,746,291 RMB common stock 19,746,291
Fund Management
Description of the Association Mr. Fu Liquan And Ms. Chen Ailing Are Husband And Wife. The Company Is
Relationship or Concerted Action of Unaware Of Whether Other Shareholders Have Associated Relationship Or
Above-mentioned Shareholders Are Persons Acting In Concert.
Explanation On Top Ten Shareholders’
Participation In Securities Margin Trading N/A
(If An y)
6
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Whether the Company’s top ten common shareholders or top ten common shareholders without limited shares agree on
any repurchase transaction in the reporting period
□ Yes √ No
None of the Company's top ten common shareholders or top ten common shareholders without limited shares agreed on
repurchase in the reporting period.
2. The total number of the preferred shareholders and the shareholdings of the top 10 preferred
shareholders
□ Applicable √ Not applicable
7
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Section III Significant Events
I. The Changes in Major Financial Data and Financial Indicators in the Current
Reporting Period and the Reasons
√ Applicable □ Not applicable
i. The changes of assets and liabilities and the reasons
1. The notes receivable are decreased by 58.72 % compared with the beginning of this year, which is mainly caused by
the decrease of settlement of notes sold in the current reporting period;
2. The prepayments are increased by 31.49% compared with the beginning of this year, which is mainly caused by the
increase of prepayments for raw materials in the current reporting period;
3. The interest receivable is increased by 121.11% compared with the beginning of this year, which is mainly caused by the
increase of fixed deposits;
4. The inventory is increased by 33.6% compared with the beginning of this year, which is mainly caused by the expansion
of the Company’s sales scale and the increase of stock;
5. The available-for-sale financial assets are decreased by 100% compared with the beginning of this year, which is mainly
caused by that the Company adjusted the items previously listed as available -for-sale financial assets to other non-current
financial assets due to the implementation of the new standards for financial instruments from 2019;
6. The long-term receivables are increased by 40.44% compared with the beginning of this year, which is mainly caused by
the acceptance of goods sold with payment by installments;
7. Other non-current financial assets are increased by 100% compared with the beginning of this year, which is mainly
caused by that the Company adjusted the items previously listed as available -for-sale financial assets to other non-current
financial assets due to the implem entation of the new standards for financial instruments from 2019;
8. The construction in progress is increased by 53.62% compared with the beginning of this year, which is mainly caused
by the increase of investment in the Phase II construction of the sma rt manufacturing base in Hangzhou and the R&D and
industrialization of the smart IoT solutions;
9. The goodwill is decreased by 61.1% compared with the beginning of this year, which is mainly caused by the provision
for the impairment of assets set aside in this reporting period;
10. The short-term loans are increased by 37.11% compared with the end of the previous year, which is mainly caused by
the increase of borrowings from banks in this period;
11. The financial liabilities at fair value through profit or loss of the current period are decreased by 100% compared with
the end of the previous year, which is mainly caused by that the Company adjusted the items previously listed as financial
liabilities at fair value through profit or loss of the current period to trading financial liabilities due to the implementation of
the new standards for financial instruments from 2019;
12. The payments received in advance are increased by 47.89% compared with the end of the previous year, which is
mainly caused by the business growth of the Company;
8
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
13. The taxes payable are decreased by 35.62% compared with the end of the previous year, which is mainly caused by
the decrease of value-added tax and the corporate income tax payable at the end of this period;
14. The interest payable is increased by 132.09% compared with the end of the previous year, which is mainly caused by
the increase of borrowings from banks in this period;
15. The dividend payable is increased by 100% compared with the end of the previous year, which is mainly caused by
that the dividend of restricted shares was not released;
16. The estimated liabilities are increased by 45.44% compared with the beginning of this year, which is mainly caused by
the increase of estimated fees for after-sales maintenance of products;
17. The deferred income is increased by 42.72% compared with the beginning of this year, which is mainly caused by the
receiving of the special subsidy rewards for the Dahua Smart (IoT) Industrial Park;
18. Other comprehensive income is decreased by 52.49% compared with the end of the previous year, which is mainly
caused by the decrease of exchange differences from the translation of foreign currency statements;
ii. The changes of items in the income statement and the reasons
1. The expenses for R&D saw a year-on-year rise of 33.79%, which is mainly caused by the increased input of the
Company in R&D;
2. The financial expenses saw a year-on-year rise of 58.57%, which is mainly caused by the decrease of exchange gains
in this period;
3. Other income saw a year-on-year rise of 32.76%, which is mainly caused by the increase of government subsidies
recorded as other income;
4. The investment income saw a year-on-year rise of 124.79%, which is mainly caused by the decrease of investment
losses of associates confirmed with the equity method in this period;
5. The fair value gains / (losses) saw a year-on-year rise of 159.22%, which is mainly caused by the changes of the fair
value from foreign exchange hedging business ;
6. The credit impairment losses saw a year-on-year rise of 100%, which is mainly caused by the implementation of the
new standards for financial instruments from 2019;
7. The asset impairment losses saw a year-on-year drop of 39.51%, which is mainly caused by the implementation of the
new standards for financial instruments from 2019 and the provision for the goodwill impairment;
8. The income from the disposal of assets saw a year-on-year rise of 2281.89%, which is mainly caused by the increase of
income from the disposal of fixed assets in this period;
9. The non-operating income saw a year-on-year drop of 53.72%, which is mainly caused by the decrease of government
subsidies recorded as non-operating income in this period;
10. The non-operating expenses saw a year-on-year drop of 32.33%, which is mainly caused by the decrease of losses
from the disposal of fixed assets in this period;
iii. The changes of items in the cash flow statement and the reasons
1. The net amount of cash flow generated by the business activities saw a year-on-year rise of 67.71%, which is mainly
caused by the Company’s enhanced management of receivables and the increase of payments recovered;
9
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
2. The net amount of cash flow generated by fund-raising activities saw a year-on-year drop of 69.91%, which is mainly
caused by the increase of repaid loans.
II. Progress of Significant Events and the Analysis of Its Influence and Solutions
√ Applicable □ Not applicable
1. On 24 January 2017, the Company's holding sub-subsidiary South North United Information Technology Co., Ltd.
and its wholly-owned subsidiary Zhejiang Dahua System Engineering Co., Ltd. signed a Cooperation Agreement on PPP
Investment in Safe City Project of Shache County with the People's Govern ment of Shache County in Kashgar, Xinjiang,
which is just a framework agreement on the PPP project. The agreement stipulates that the service content is the
pre-feasibility study of the project and the design of the project, etc. For the implementation of the specific project, it still
needs to fulfill related decision-making and approval procedures, such as government procurement.
On 21 July 2017, the Company received the Notification of Award issued by the project purchasing unit, which
confirmed that the wholly-owned subsidiary Zhejiang Dahua System Engineering Co., Ltd. (the consortium leader), with
the holding sub-subsidiary South North United Information Technology Co., Ltd. (member of the consortium) was the
winning bidder for the Safe City Construction Project (PPP) in Shache County. The winning bid amount of the project is
RMB 4,314,790,000 (the final amount is based on the signed contract), which is the total amount for construction and
operation within 10 years project cooperation period.
On 4 August 2017, the Company's 34th session of the 5th Board of Directors' meeting reviewed and approved the
Proposal on Investing to Establish a PPP Project Company in Shache County, Xinjiang, and the Company submitted a bid
based on the requirements 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 the company approved by the indus trial and commercial bureau was Xinjiang
Dahua Xinzhi Information Technology Co., Ltd.
On 18 April 2018, the winning bidder received the requirements of Shache Public Security Bureau to stop
implementation of Safe City Construction Project (PPP) in Shache County. Near a half of the construction progress in the
project construction period has been completed, but no expenses for subsequent equipment replacement, operation and
maintenance have been incurred. The actual investment in 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
requirements in PPP-related laws and regulations, but the risk exists that the project will not be furthered and the
identifiable income of the Company 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 the provisions in relevant laws and regulations and the Articles of Association.
2. On 16 May 2017 , the Company's 2016 Annual General Meeting of Shareholders reviewed and approved the
Zhejiang Dahua Technology Co., Ltd. Phase III Employee Stock Ownership Plan (Draft) and its summary, and decided to
implement the Phase III Employee Stock Ownership Plan. On 1 June 2017, the Company's Phase III Employee Stock
10
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Ownership Plan completed the purchas e of the shares through the Caitong Securities Asset Management Dahua No. 3
Directed Asset Management Plan, with an average purchase price of RMB16.83 per share and a purchase volume of
47,000,000 shares.
On November 12, 2018, the Company's 18th meeting of the 6th Board of Directors reviewed and approved "the
Suggestive Proposal on Extension of the Impending Expiration of the Company's Third Employee Stock Ownership Plan
Duration". The Board of Directors agreed to extend the Company's third employee stock o wnership plan for one year
according to the voting results of the shareholders' meeting. That is, the duration was extended for one additional year on
the basis of the original termination date, until May 15, 2020.
3. On December 27, 2018, the Company's 5th interim shareholders' meeting in 2018 reviewed and approved the
"Proposal on Buy-back and Cancellation of Some Granted but Unlocked Restricted Stocks" and agreed to buy back and
cancel restricted shares held by the incentive targets who have left the Com pany and one deceased personnel. The
buy-back price was RMB 8.17 per share, the same as the granting price, and the registered capital was reduced
accordingly. The aforesaid repurchase and cancellation had been accomplished on March 4, 2019 and the industr ial and
commercial registration of changes had been accomplished on April 15, 2019.
4. On June 5, 2019, the first extraordinary shareholders’ meeting reviewed and approved the Proposal on the Public
Offering of Convertible Corporate Bonds and the Feasibili ty Study Report on the Employment of Funds Raised by the
Publicly Offered Convertible Corporate Bonds. (For more details, please see the announcements numbered 2019 -030
and 2019-038 published on Securities Times and www.cninfo.com.cn)
5. On Jul y 29, 2019, the Company's 23rd session of the 6th Board of Directors' meeting reviewed and approved the
Proposal on Giving up the Shareholding Company's Right to Increase Capital with the Same Percentage and
Related-party Transactions. It is agreed to give up the right of Jinhua CRRC Smart IoT New Energy Industry In vestment
Center (limited partnership) to increase the capital of Zhejiang Leapmotor Technology Co., Ltd. with the same percentage.
The total amount of related-party transactions involved in giving up the right to increase the capital with the same
percentage is RMB 58,752,000. The change of industrial and commercial registrations for the above matter was
completed in August 2019.
6. On Jul y 29, 2019, the Company's 23rd session of the 6th Board of Directors' m eeting reviewed and approved the
Proposal on Increasing Capital in Holding Subsidiaries and Related -party Transactions. The Company and the related
party Zhejiang Huashi Investment Management Co., Ltd. increased capital in the holding subsidiary Zhejiang D ahua
Robot Technology Co., Ltd. with the same percentage. The Company would complete a capital increase of RMB 40.8
million with its own funds and the related party Zhejiang Huashi Investment Management Co., Ltd. would complete a
capital increase of RMB 39.2 million. After the capital increase, the registered capital of Zhejiang Dahua Robot Technology
Co., Ltd. would increase from RMB 50 million to RMB 130 million. The change of industrial and commercial registrations
for the above matter was completed in August 2019.
7. On September 6, 2019, the Company's 25th session of the 6th Board of Directors' meeting reviewed and approved
the Proposal on Granting Reserved Restricted Stocks to Incentive Targets. It was agreed to grant 11,380,400 reserved
restricted shares to 789 eligible incentive targets at the price of RMB 8.75 per share. The matter is still in progress.
Indexes for the Inquiry of
Overview of the Significant Events Date of Disclosure
Websites Disclosing the
11
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Provisional Reports
The Announcement on the Signing of a Framework Agreement by a Juchao Information Website
January 26, 2017
Subsidiary for a PPP Project http://www.cninfo.com.cn/
The Indicative Announcement on the Publicity of the Pre-awarding of Juchao Information Website
July 18, 2017
the Bid for a PPP Project to a Subsidiary http://www.cninfo.com.cn/
The Announcement on Establishing a PPP Project Company in Juchao Information Website
August 07, 2017
Shache County http://www.cninfo.com.cn/
Juchao Information Website
The Announcement on the Progress of the PPP Project of a Subsidiary 18 April 2018
http://www.cninfo.com.cn/
The Announcement on the Resolutions made on the 2016 Annual Juchao Information Website
Ma y 17, 2017
General Meeting of Shareholders http://www.cninfo.com.cn/
The Announcement on the Accomplishment of the Purchase for the Juchao Information Website
June 02, 2017
Phase III ESOP http://www.cninfo.com.cn/
The Indicative Announcement on the Expiration of the Phase III ESOP November 13, Juchao Information Website
and the Announcement on the Extension 2018 http://www.cninfo.com.cn/
The Announcement of Resolutions at the Fifth Extraordinary General December 28, Juchao Information Website
Meeting of 2018 2018 http://www.cninfo.com.cn/
The Announcement on the Accomplishment of the Repurchase and Juchao Information Website
March 06, 2019
Cancellation of Part of Restricted Shares http://www.cninfo.com.cn/
The Announcement on the Proposal on the Public Offering of Juchao Information Website
Ma y 18, 2019
Convertible Corporate Bonds http://www.cninfo.com.cn/
Announcement of Resolutions at the First Extraordinary General Juchao Information Website
June 06, 2019
Meeting of 2019 http://www.cninfo.com.cn/
The Announcement on Giving up the Shareholding Company's Right to
Increase Capital with the Same Percentage and Related Transactions, Juchao Information Website
July 30, 2019
and the Capital Increase in a Holding Subsidiary and the Related http://www.cninfo.com.cn/
Transaction
The Announcement on Granting the Reserved Restricted Stocks to September 07, Juchao Information Website
Incentive Targets 2019 http://www.cninfo.com.cn/
The progress on share buy-back
√ Applicable □ Not applicable
The Company plans to buy back some shares with the funds raised by itself through centralized competitive bidding.
The total amount of funds for the repurchase shall not be lower than RMB 200 million (inclusive) and higher than RMB 400
million (inclusive). The price of the repurchase shall not exceed RMB 25.37 per share (inclusive). Calculated according to
the purchase price and the upper limit for the repurchase, it’s estimated to buy back 15,766,653 shares. The repurchased
12
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
shares will make up 0.53% of the current total share capital of the Company. The specific amount of repurchased shares
and the proportion in the total share capital of the Company shall be subject to the actually repurchased number of shares
and the actual proportion when the period of repurchase expires. The period for the implementation of repurchase shall be
12 months from the day the Board of Directors reviews and approves the repurchase scheme.
As of September 30, 2019, the Company bought back 13,182,480 shares with its special secur ities account through
centralized competitive bidding, which made up 0.4398% of the total share capital of the Company. The highest
transaction price was RMB 17.88 per share and the lowest transaction price was RMB 12.9 per share. The total amount of
transactions was RMB 199,993,812.44 (not including the transaction expenses). The Announcement on the Scheme for
the Repurchase of Shares (Announcement No.: 2019-025) and the Announcement on the Progress of the Repurchase of
Shares (Announcement No.: 2019-063) had been respectively published on Securities Times and www.cninfocom.cn on
April 26, 2019 and October 10, 2019.
The progress on reduction of re-purchase shares by means of centralized bidding
□ Applicable √ Not applicable
III. Commitments made by the Company's actual controllers, shareholders, related
parties, purchasers and purchasing companies having not been fulfilled during the
reporting period
□ Applicable √ Not applicable
During this reporting period, there is no commitment made by the Company's actual controllers, shareholders, related
parties, purchasers and purchasing companies having not been fulfilled during the reporting period.
IV. Estimation of Business Performance in 2019
The estimated business performance in 2019: the net profit attributab le to the shareholders of the listed company shall be
positive and the circumstance shall not be turning losses into profits.
The fluctuation range of the net profit attributable to
15% to 30%
the shareholders of the listed company in 2019
The range of changes in the net profit attributable
to the shareholders of the listed company in 2019 290,884.05 to 328,825.45
(Unit: RMB 10,000)
The net profit attributable to the shareholders of the
252,942.65
listed company in 2018 (Unit: RMB 10,000)
The Company expanded its sales scale so that the operating
income increased. It’s estimated that the net profit attributable to the
Note for the changes
owners of the parent company will increase 15%-30% compared
with the same period of the previous year.
13
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
V. Financial Assets at Fair Value
√ Applicable □ Not applicable
(in RMB, e xcept per share data, unaudited)
Changes in
Amount Amount
Fair Value Cumulative
Initial Purchased Sold during Cumulative Amount at
Asset Gains and Fair Value Capital
Investment during the the Investment the End of
Class Losses in the Changes in Source
Cost Reporting Reporting Income the Period
Current Equity
Period Period
Period
Financial Equity
38,409,531.36 -8,457,380.12 17,285.33
Derivatives Fund
Other
Non-curren Equity
82,970,227.00 1,000,000.00 83,970,227.00
t Financial Fund
Assets
Total 82,970,227.00 38,409,531.36 - 1,000,000.00 - -8,457,380.12 83,987,512.33 --
VI. Illegal external guarantees
□ Applicable √ Not applicable
No illegal external guarantees during the reporting period.
VII. Non-operational Capital Occupation over Listed Companies by Controlling
Shareholders and Their Related Parties
□ Applicable √ Not applicable
During the reporting period, there is no non-operational capital occupation over listed companies by controlling
shareholders and their related parties.
VIII. Entrusted Financing
□ Applicable √ Not applicable
No such case as entrusted financing during the reporting period.
IX. Registration Form for reception of research, communication, interviews and other
activities during the reporting period
√ Applicable □ Not applicable
14
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Reception
Reception Time Reception Method Index of the Basic Information of Research
Target Type
For more information, please see the investor relations activity
August 19, 2019 Field Investigation Institution
list in http://www.cninfo.com.cn
For more information, please see the investor relations activity
September 05, 2019 Field Investigation Institution
list in http://www.cninfo.com.cn
For more information, please see the investor relations activity
September 10, 2019 Field Investigation Institution
list in http://www.cninfo.com.cn
For more information, please see the investor relations activity
September 12, 2019 Field Investigation Institution
list in http://www.cninfo.com.cn
For more information, please see the investor relations activity
September 25, 2019 Field Investigation Institution
list in http://www.cninfo.com.cn
For more information, please see the investor relations activity
September 26, 2019 Field Investigation Institution
list in http://www.cninfo.com.cn
For more information, please see the investor relations activity
September 27, 2019 Field Investigation Institution
list in http://www.cninfo.com.cn
15
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Section IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co., Ltd.
September 30, 2019
Unit: RMB
Item Name September 30, 2019 December 31, 2018
Current Assets:
Monetary Funds 3,555,362,285.14 4,160,153,847.06
Deposit Reservation for Balance
Loans to Banks and Other Financial Institutions
Trading Financial Assets 17,285.33
Financial Liabilities at Fair Value through Profit or Loss
Derivative Financial Assets
Bills Receivable 984,721,517.63 2,385,693,417.06
Accounts Receivable 11,640,177,341.20 10,191,372,777.38
Receivables Financing
Prepayments 166,849,691.46 126,891,259.00
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves Receivable
Other Receivables 426,864,058.06 398,170,769.40
Including: Interest Receivable 14,936,130.62 6,754,941.00
Dividends Receivable
Buying Back the Sale of Financial Assets
Inventory 4,055,505,530.21 3,035,579,709.14
Contract Assets
Holding for-sale Assets
16
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Non-current Assets Due within 1 Year 613,378,258.93 578,733,057.27
Other Current Assets 457,394,009.91 402,255,078.05
Subtotal of Current Assets 21,900,269,977.87 21,278,849,914.36
Non-current Assets:
Granting of Loans and Advances
Investment in Creditor's Rights
Financial Assets Available for Sale 82,970,227.00
Investment in Other Creditor's Rights
Held-to-maturity In vestments
Long-term Receivables 2,614,251,641.17 1,861,485,568.28
Long-term Equity In vestment 144,938,239.50 185,872,021.58
Investment in Other Equity Instruments
Other Non-current Financial Assets 83,970,227.00
Investment Property 340,065,865.90 346,831,376.55
Fixed Assets 1,438,234,576.53 1,407,471,330.83
Projects under Construction 347,473,416.43 226,191,587.11
Productive Biological Assets
Oil and Gas Assets
Right-of-use Assets
Intangible Assets 406,236,409.84 372,467,409.09
Development Expenditure
Goodwill 42,685,490.30 109,745,412.21
Long-term Prepaid Expenses 36,297,838.89 37,117,918.55
Deferred Income Tax Assets 549,812,365.04 425,319,406.98
Other Non-current Assets 15,912,465.02 16,277,605.61
Subtotal of Non-current Assets 6,019,878,535.62 5,071,749,863.79
Total Assets 27,920,148,513.49 26,350,599,778.15
Current Liabilities:
Short-term Loan 2,538,910,516.82 1,851,709,561.83
Borrowings from Banks and Other Financial Institutions
Borrowing Funds
17
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Transactional Financial Liabilities
Financial Liabilities Measured in Fair Value with Changes
38,602,602.30
Recorded into Current Profit and Loss
Derivative Financial Liabilities
Notes Payable 3,021,145,396.58 3,671,586,104.79
Accounts Payable 3,659,476,898.05 3,789,729,594.20
Received Pre-payments 507,720,321.19 343,297,891.20
Contract Liabilities
Financial Assets Sold for Repurchase
Deposit Taking and Interbank Deposit
Receiving from Vicariously Traded Securities
Receiving from Vicariously Sold Securities
Payroll Payable 1,149,454,546.49 1,124,358,611.94
Tax Pa yable 385,966,669.10 599,478,049.81
Other Payables 1,144,866,260.63 1,051,537,094.97
Including: Interest Payable 11,012,979.60 4,745,203.31
Dividends Payable 9,882,284.31
Service Charge and Commission Payable
Reinsurance Accounts Payable
Holding for-sale Liabilities
Non-current Liabilities Due within 1 Year 25,500,000.00 25,500,000.00
Other Current Liabilities 68,857,756.46 70,845,639.51
Subtotal of Current Liabilities 12,501,898,365.32 12,566,645,150.55
Non-current Liabilities:
Insurance Contract Reserves
Long-term Loans 154,000,000.00 179,000,000.00
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities
Long-term Payables
18
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Long-term Payroll Payable
Expected Liabilities 281,814,316.19 193,761,170.12
Deferred Income 83,769,065.79 58,693,533.40
Deferred Income Tax Liabilities 52,879,417.75 50,137,969.76
Other Non-current Liabilities 432,267,970.17 399,096,280.89
Subtotal of Non-current Liabilities 1,004,730,769.90 880,688,954.17
Total Liabilities 13,506,629,135.22 13,447,334,104.72
Shareholders' Equity:
Share Capital 2,997,577,730.00 2,997,621,930.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 1,630,363,003.50 1,501,180,862.83
Less: Treasury Share 997,484,000.13 807,733,586.00
Other Comprehensive Incomes 4,911,148.57 10,337,164.41
Special Reserves
Surplus Reserves 1,246,369,430.91 1,246,369,430.91
General Risk Reserves
Undistributed Profits 9,248,573,870.14 7,670,983,116.33
Total Shareholders' Equity Attributable to the Parent Company 14,130,311,182.99 12,618,758,918.48
Minority Shareholders' Equity 283,208,195.28 284,506,754.95
Total Shareholders' Equity 14,413,519,378.27 12,903,265,673.43
Total Liabilities and Shareholders' Equity 27,920,148,513.49 26,350,599,778.15
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 September 30, 2019 December 31, 2018
Current Assets:
Monetary Funds 330,071,832.60 611,190,236.01
19
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Trading Financial Assets
Financial Liabilities at Fair Value through Profit or Loss
Derivative Financial Assets
Bills Receivable 1,026,955,892.42 952,572,702.92
Accounts Receivable 7,513,721,266.56 4,598,575,923.04
Receivables Financing
Prepayments 28,184,602.91 26,772,044.53
Other Receivables 5,651,042,209.33 6,954,655,863.03
Including: Interest Receivable 42,500.00
Dividends Receivable
Inventory 161,553,679.53 120,181,267.85
Contract Assets
Holding for-sale Assets
Non-current Assets Due within 1 Year 52,617,709.38 50,793,137.80
Other Current Assets 20,231,057.09 24,858,982.78
Subtotal of Current Assets 14,784,378,249.82 13,339,600,157.96
Non-current Assets:
Investment in Creditor's Rights
Financial Assets Available for Sale 80,496,000.00
Investment in Other Creditor's Rights
Held-to-maturity In vestments
Long-term Receivables 152,892,829.05 160,299,143.83
Long-term Equity In vestment 3,098,023,447.28 3,001,639,428.55
Investment in Other Equity Instruments
Other Non-current Financial Assets 81,496,000.00
Investment Property 177,163,871.17 183,321,198.72
Fixed Assets 540,586,053.61 496,363,638.38
Projects under Construction 160,030,464.52 151,072,585.67
Productive Biological Assets
Oil and Gas Assets
Right-of-use Assets
20
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Intangible Assets 160,216,246.15 170,879,747.04
Development Expenditure
Goodwill
Long-term Prepaid Expenses 26,419,041.10 28,927,258.54
Deferred Income Tax Assets 103,154,140.46 40,821,902.57
Other Non-current Assets 10,131,863.77 929,380.00
Subtotal of Non-current Assets 4,510,113,957.11 4,314,750,283.30
Total Assets 19,294,492,206.93 17,654,350,441.26
Current Liabilities:
Short-term Loan 1,920,000,000.00 1,380,000,000.00
Transactional Financial Liabilities
Financial Liabilities Measured in Fair Value with Changes
Recorded into Current Profit and Loss
Derivative Financial Liabilities
Notes Payable 291,520,667.91 175,647,414.85
Accounts Payable 439,832,886.75 889,881,485.16
Received Pre-payments 54,444,778.18 80,361,211.04
Contract Liabilities
Payroll Payable 812,472,308.49 817,723,936.19
Tax Pa yable 197,359,387.30 351,294,836.50
Other Payables 1,179,861,000.96 1,060,909,330.56
Including: Interest Payable 9,340,854.19 2,416,340.30
Dividends Payable 9,882,284.31
Holding for-sale Liabilities
Non-current Liabilities Due within 1 Year
Other Current Liabilities 5,924,816.39 6,464,333.12
Subtotal of Current Liabilities 4,901,415,845.98 4,762,282,547.42
Non-current Liabilities:
Long-term Loans
Bonds Payable
Including: Preferred Stocks
21
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Perpetual Bonds
Lease Liabilities
Long-term Payables
Long-term Payroll Payable
Expected Liabilities 3,316,774.63 3,396,100.00
Deferred Income
Deferred Income Tax Liabilities
Other Non-current Liabilities 17,972,406.39 23,684,423.74
Subtotal of Non-current Liabilities 21,289,181.02 27,080,523.74
Total Liabilities 4,922,705,027.00 4,789,363,071.16
Shareholders' Equity:
Share Capital 2,997,577,730.00 2,997,621,930.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 1,618,513,539.89 1,497,801,068.88
Less: Treasury Share 997,484,000.13 807,733,586.00
Other Comprehensive Incomes
Special Reserves
Surplus Reserves 1,246,369,430.91 1,246,369,430.91
Undistributed Profits 9,506,810,479.26 7,930,928,526.31
Total Shareholders' Equity 14,371,787,179.93 12,864,987,370.10
Total Liabilities and Shareholders' Equity 19,294,492,206.93 17,654,350,441.26
3. Consolidated Income Statement of This Reporting Period
Unit: RMB
This Period's Amount Previous Period's
Item Name
of Occurrence Amount of Occurrence
I. Total Operating Revenue 5,621,668,726.34 5,216,687,713.72
Including: Operating Revenue 5,621,668,726.34 5,216,687,713.72
Interest Income
22
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Earned Premiums
Service Charge and Commission Income
II. Total Operating Cost 5,191,296,726.66 4,887,081,096.07
Including: Operating Cost 3,253,454,590.62 3,333,731,189.72
Interest Expenditures
Service Charge and Commission Expenses
Surrender Value
Net Claims Paid
The Net Amount Withdrawn for Insurance Liability Reserves
Policyholder Dividend Expense
Reinsurance Cost
Taxes and Surcharges 37,126,748.19 41,313,194.06
Sales Expenses 1,000,254,942.06 823,964,851.51
Management Fees 212,675,785.58 208,144,671.11
Research and Development Expense 777,438,286.97 646,771,713.83
Financial Expenses -89,653,626.76 -166,844,524.16
Including: Interest Expenses 34,207,254.30 29,722,966.77
Interest Income 54,494,942.28 29,379,494.71
Add: Other Income 194,077,637.71 182,833,069.63
Investment Income (Mark "-" for Loss) 18,610,281.21 -31,254,782.85
Including: Investment Income from Affiliates and Joint Ventures -60,323.75 -6,657,627.72
Profits from Recognition Termination of Financial Assets at
Amortized Cost
Exchange Gains (Mark "-" for Losses)
Profit of Net Exposure Hedging (Mark "-" for Loss)
Incomes from Changes in Fair Value (Losses Marked with "-") -7,039,656.80 -23,528,521.97
Credit Impairment Losses (Mark "-" for Loss) -51,555,026.88
Asset Impairment Losses (Mark "-" for Loss) -1,503,079.62 -37,475,609.41
Asset Disposal Income (Mark "-" for Loss) -30,929.16 30,560.71
III. Operating Profit (Mark "-" for Loss) 582,931,226.14 420,211,333.76
Add: Non-operating Incomes 3,152,484.26 19,971,732.76
23
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Less: Non-operating Expenses 352,012.78 330,608.26
IV. Total Profit (Mark "-" for Total Loss) 585,731,697.62 439,852,458.26
Less: Income Tax Expense -40,088,484.83 -47,525,102.25
V. Net Profit (Mark "-" for Net Loss) 625,820,182.45 487,377,560.51
i. Classified by operation continuity
1. Net Profit as a Going Concern (Mark "-" for Net Loss) 625,820,182.45 487,377,560.51
2. Net Profit of Discontinued Operation (Mark "-" for Net Loss)
ii. Classified by the Attribution of Ownership
1. Net Profit Attributable to the Parent Company's Owner 638,471,475.06 481,764,501.06
2. Minority Shareholders' Profit and Loss -12,651,292.61 5,613,059.45
VI. Net Amount of Other Comprehensive Incomes after Tax -4,707,760.24 -10,629,067.12
Net Amount of Other Comprehensive Incomes After Tax Attributable to
-4,707,760.24 -10,629,067.12
the Parent Company's Owner
(1) Other comprehensive Income that cannot be Reclassified as P/L
1. Re-measure the Variation of the Defined Benefit Plan
2. Other Comprehensive Income that cannot be Transferred
to P/L under the Equity Method
3. Changes in the Fair Value of Investment in Other Equity
Instruments
4. Changes in the Fair Value of the Credit Risk of the
Enterprise
5. Others
(2) Other Comprehensive Income that will be Reclassified as P/L -4,707,760.24 -10,629,067.12
1. Other Comprehensive Income that can be Transferred to
P/L under the Equity Method
2. Changes in the Fair Value of Investment in Other Creditor's
Rights
3. Profit or Loss Arising from Changes in the Fair Value of
Financial Assets Available for Sale
4. Financial Assets Reclassified into Other Comprehensive
Income
5. Profit or Loss Arising from Reclassifying Investments Held
24
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
to Maturity as Financial Assets Available for Sale
6. Provisions for the Credit Impairment of Investment in Other
Creditor's Rights
7. Cash Flow Hedge Reserves
8. Currency Translation Difference -4,707,760.24 -10,629,067.12
9. Others
Net Amount of Other Comprehensive Incomes After Tax Attributable to
Minority Shareholders
VII. Total Comprehensive Income 621,112,422.21 476,748,493.39
Total Comprehensive Income Attributable to the Parent Company's
633,763,714.82 471,135,433.94
Owner
Total Comprehensive Income Attributable to Minority Shareholders -12,651,292.61 5,613,059.45
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.22 0.17
(II) Diluted Earnings per Share 0.22 0.17
Legal representative: Fu Liquan Person in charge of accounting: Wei Meizhong Person in charge of the accounting institution: Xu Qiaofen
4. Income Statement of the Parent Company in This Reporting Period
Unit: RMB
This Period's Amount Previous Period's
Item Name
of Occurrence Amount of Occurrence
I. Operating Revenue 2,083,600,346.73 1,792,844,785.59
Less: Operating Cost 214,105,635.09 287,661,878.89
Taxes and Surcharges 27,934,138.20 22,733,401.39
Sales Expenses 484,641,161.29 488,743,169.47
Management Fees 130,526,564.44 99,149,898.12
Research and Development Expense 649,266,390.42 589,456,757.42
Financial Expenses 1,735,618.92 5,462,603.59
Including: Interest Expenses 22,964,335.86 8,996,914.10
Interest Income 21,446,503.60 4,962,437.30
Add: Other income 133,795,590.92 171,234,834.51
25
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Investment Income (Mark "-" for Loss) 1,217,993.97 -6,657,627.72
Including: Investment Income from Affiliates and Joint Ventures 145,189.01 -6,657,627.72
Profits from Recognition Termination of Financial Assets at
Amortized Cost
Profit of Net Exposure Hedging (Mark "-" for Loss)
Incomes from Changes in Fair Value (Losses Marked with "-")
Credit Impairment Losses (Mark "-" for Loss) -5,976,465.73
Asset Impairment Losses (Mark "-" for Loss) 44,895,002.92
Asset Disposal Income (Mark "-" for Loss) 21,718.55
II. Operating Profit (Mark "-" for Loss) 704,427,957.53 509,131,004.97
Add: Non-operating Incomes 2,290,786.72 17,831,075.48
Less: Non-operating Expenses 128,305.79 245,021.42
III. Total Profit (Mark "-" for Total Loss) 706,590,438.46 526,717,059.03
Less: Income Tax Expense -42,457,832.18 -110,393,938.26
IV. Net Profit (Mark "-" for Net Loss) 749,048,270.64 637,110,997.29
(I) Net Profit as a Going Concern (Mark "-" for Net Loss) 749,048,270.64 637,110,997.29
(II) Net Profit of Discontinued Operation (Mark "-" for Net Loss)
V. Net Amount of Other Comprehensive Incomes After Ta x
(1) Other Comprehensive Income that cannot be Reclassified as
P/L
1. Re-measure the Variation of the Defined Benefit Plan
2. Other Comprehensive Income that cannot be Transferred
to P/L under the Equity Method
3. Changes in the Fair Value of Investment in Other Equity
Instruments
4. Changes in the Fair Value of the Credit risk of the
Enterprise
5. Others
(2) Other Comprehensive Income that will be Reclassified as P/L
1. Other Comprehensive Income that can be Transferred to
P/L under the Equity Method
2. Changes in the Fair Value of Investment in Other Creditor's
26
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Rights
3. Profit or Loss Arising from Changes in the Fair Value of
Financial Assets Available for Sale
4. Financial Assets Reclassified into Other Comprehensive
Income
5. Profit or Loss Arising from Reclassifying Investments Held
to Maturity as Financial Assets Available for Sale
6. Provisions for the Credit Impairment of Investment in Other
Creditor's Rights
7. Cash Flow Hedge Reserves
8. Currency Translation Difference
9. Others
VI. Total Comprehensive Income 749,048,270.64 637,110,997.29
VII. Earnings per Share:
(I) Basic Earnings per Share 0.26 0.22
(II) Diluted Earnings per Share 0.26 0.22
5. Consolidated Income Statement from the Beginning of the Year to the End of the Reporting
Period
Unit: RMB
This Period's Amount Previous Period's
Item Name
of Occurrence Amount of Occurrence
I. Total Operating Revenue 16,428,235,097.23 15,030,729,066.20
Including: Operating Revenue 16,428,235,097.23 15,030,729,066.20
Interest Income
Earned Premiums
Service Charge and Commission Income
II. Total Operating Cost 14,841,856,899.77 13,544,083,764.70
Including: Operating Cost 9,696,883,741.65 9,563,851,634.78
Interest Expenditures
Service Charge and Commission Expenses
Surrender Value
27
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Net Claims Paid
The Net Amount Withdrawn for Insurance Liability
Reserves
Policyholder Dividend Expense
Reinsurance Cost
Taxes and Surcharges 101,317,597.41 104,005,456.03
Sales Expenses 2,539,969,197.39 2,076,706,752.34
Management Fees 559,594,952.94 477,344,075.64
Research and Development Expense 2,022,699,488.74 1,511,900,765.92
Financial Expenses -78,608,078.36 -189,724,920.01
Including: Interest Expenses 110,544,575.72 78,284,369.59
Interest Income 135,645,132.09 80,171,832.38
Add: Other Income 620,999,154.79 467,750,068.56
Investment Income (Mark "-" for Loss) 12,919,278.92 -52,122,659.16
Including: Investment Income from Affiliates and Joint
-608,947.68 -32,224,908.63
Ventures
Profits from Recognition Termination of Financial Assets at
Amortized Cost
Exchange Gains (Mark "-" for Losses)
Profit of Net Exposure Hedging (Mark "-" for Loss)
Incomes from Changes in Fair Value (Losses Marked with "-") 38,409,531.36 -64,861,287.24
Credit Impairment Losses (Mark "-" for Loss) -215,236,533.37
Asset Impairment Losses (Mark "-" for Loss) -100,277,266.24 -165,771,631.81
Asset Disposal Income (Mark "-" for Loss) 417,686.67 17,535.97
III. Operating Profit (Mark "-" for Loss) 1,943,610,049.59 1,671,657,327.82
Add: Non-operating Incomes 11,666,319.32 25,206,031.85
Less: Non-operating Expenses 1,709,111.33 2,525,495.61
IV. Total Profit (Mark "-" for Total Loss) 1,953,567,257.58 1,694,337,864.06
Less: Income Tax Expense 123,084,881.14 118,196,431.38
V. Net Profit (Mark "-" for Net Loss) 1,830,482,376.44 1,576,141,432.68
i. Classified by Operation Continuity
28
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
1. Net Profit as a Going Concern (Mark "-" for Net Loss) 1,830,482,376.44 1,576,141,432.68
2. Net Profit of Discontinued Operation (Mark "-" for Net Loss)
ii. Classified by the Attribution of Ownership
1. Net Profit Attributable to the Parent Company's Owner 1,877,352,423.80 1,563,681,387.58
2. Minority Shareholders' Profit and Loss -46,870,047.36 12,460,045.10
VI. Net Amount of Other Comprehensive Incomes after Tax -5,425,937.54 -2,235,307.10
Net Amount of Other Comprehensive Incomes After Tax Attributable
-5,426,015.84 -2,235,307.10
to the Parent Company's Owner
(1) Other Comprehensive Income that cannot be Reclassified as
P/L
1. Re-measure the Variation of the Defined Benefit plan
2. Other Comprehensive Income that cannot be
Transferred to P/L under the Equity Method
3. Changes in the Fair Value of Investment in Other Equity
Instruments
4. Changes in the Fair Value of the Credit Risk of the
Enterprise
5. Others
(2) Other Comprehensive Income that will be Reclassified as P/L -5,426,015.84 -2,235,307.10
1. Other Comprehensive Income that can be Transferred to
P/L under the Equity Method
2. Changes in the Fair Value of Investment in Other
Creditor's Rights
3. Profit or Loss Arising from Changes in the Fair Value of
Financial Assets Available for Sale
4. Financial Assets Reclassified into Other Comprehensive
Income
5. Profit or Loss Arising from Reclassifying Investments
Held to Maturity as Financial Assets Available for Sale
6. Provisions for the Credit Impairment of Investment in
Other Creditor's Rights
7. Cash Flow Hedge Reserves
8. Currency Translation Difference -5,426,015.84 -2,235,307.10
29
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
9. Others
Net Amount of Other Comprehensive Incomes After Tax Attributable
78.30
to Minority Shareholders
VII. Total Comprehensive Income 1,825,056,438.90 1,573,906,125.58
Total Comprehensive Income Attributable to the Parent
1,871,926,407.96 1,561,446,080.48
Company's Owner
Total Comprehensive Income Attributable to Minority
-46,869,969.06 12,460,045.10
Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.64 0.54
(II) Diluted Earnings per Share 0.64 0.54
Legal representative: Fu Liquan Person in charge of accounting: Wei Meizhong Person in charge of the accounting institution: Xu Qiaofen
6. Income Statement of the Parent Company from the Beginning of the Year to t he End of the
Reporting Period
Unit: RMB
This Period's Amount Previous Period's
Item Name
of Occurrence Amount of Occurrence
I. Operating Revenue 5,364,804,306.59 5,576,992,611.46
Less: Operating Cost 583,454,039.07 1,455,015,004.83
Taxes and Surcharges 71,739,441.76 67,645,018.11
Sales Expenses 1,259,338,762.54 1,173,616,922.24
Management Fees 325,035,065.38 224,057,849.24
Research and Development Expense 1,696,538,553.42 1,347,566,767.39
Financial Expenses 34,135,408.00 -5,455,841.16
Including: Interest Expenses 74,893,547.70 25,612,631.49
Interest Income 43,417,611.31 32,752,271.20
Add: Other Income 522,021,134.08 443,719,222.41
Investment Income (Mark "-" for Loss) 10,958,084.29 -30,125,038.40
Including: Investment Income from Affiliates and Joint
138,092.47 -31,510,214.43
Ventures
30
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Profits from Recognition Termination of Financial Assets
at Amortized Cost
Profit of Net Exposure Hedging (Mark "-" for Loss)
Incomes from Changes in Fair Value (Losses Marked with "-")
Credit Impairment Losses (Mark "-" for Loss) -16,577,286.08
Asset Impairment Losses (Mark "-" for Loss) 33,694,833.36
Asset Disposal Income (Mark "-" for Loss) 230,024.34 8,194.76
II. Operating Profit (Mark "-" for Loss) 1,911,194,993.05 1,761,844,102.94
Add: Non-operating Incomes 4,766,879.62 20,752,070.15
Less: Non-operating Expenses 828,984.67 573,768.45
III. Total Profit (Mark "-" for Total Loss) 1,915,132,888.00 1,782,022,404.64
Less: Income Tax Expense 39,489,265.06 38,435,556.77
IV. Net Profit (Mark "-" for Net Loss) 1,875,643,622.94 1,743,586,847.87
(I) Net Profit as a Going Concern (Mark "-" for Net Loss) 1,875,643,622.94 1,743,586,847.87
(II) Net Profit of Discontinued Operation (Mark "-" for Net Loss)
V. Net Amount of Other Comprehensive Incomes After Ta x
(1) Other Comprehensive Income that cannot be Reclassified as
P/L
1. Re-measure the Variation of the Defined Benefit Plan
2. Other Comprehensive Income that cannot be
Transferred to P/L under the Equity Method
3. Changes in the Fair Value of Investment in Other Equity
Instruments
4. Changes in the Fair Value of the Credit Risk of the
Enterprise
5. Others
(2) Other Comprehensive Income that will be Reclassified as P/L
1. Other Comprehensive Income that can be Transferred to
P/L under the Equity Method
2. Changes in the Fair value of Investment in other
Creditor's Rights
3. Profit or Loss Arising from Changes in the Fair Value of
31
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Financial Assets Available for Sale
4. Financial Assets Reclassified into Other Comprehensive
Income
5. Profit or Loss Arising from Reclassifying Investments
Held to Maturity as Financial Assets Available for Sale
6. Provisions for the Credit Impairment of Investment in
Other Creditor's Rights
7. Cash Flow Hedge Reserves
8. Currency Translation Difference
9. Others
VI. Total Comprehensive Income 1,875,643,622.94 1,743,586,847.87
VII. Earnings per Share:
(I) Basic Earnings per Share 0.64 0.60
(II) Diluted Earnings per Share 0.64 0.60
7. Consolidated Cash Flow Statement from the Beginning of the Year to the End of the Reporting
Period
Unit: RMB
This Period's Amount Previous Period's
Item Name
of Occurrence Amount of Occurrence
I. Cash Flow Generated by Operational Acti vities:
Cash from Sales of Merchandise and Provision of Services 16,730,049,636.83 14,096,899,342.48
Net Increase in Customer's Bank Deposits and Interbank Deposits
Net Increase in Borrowings from the Central Bank
Net Increase in Borrowing Funds
Cash Arising from Receiving Premiums for the Original Insurance
Contract
Net Amount Arising from Reinsurance Business
Net Increase in Deposits and Investments from Policyholders
Cash Arising from Interests, Service Charges and Commissions
Net Increase in Borrowing Funds
Net Increase in Repurchase Business Funds
32
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Net Amount of Cash Received from the Vicariously Traded
Securities
Tax Refund 1,273,067,692.84 1,175,466,753.02
Other Received Cashes Related to Operational Acti vities 511,327,169.88 179,706,020.35
Subtotal of Operational Activi ties Free Cash Inflow 18,514,444,499.55 15,452,072,115.85
Cash Paid for Merchandise and Services 12,421,483,664.69 11,313,035,144.29
Net Increase in Loans and Ad vances to Customers
Net Increase in Deposits with Central Bank and Other Financial
Institutions
Cash Paid for Original Insurance Contract Claims
Net Increase of Funds Lent
Cash Paid for Interests, Service Charges and Commissions
Cash Paid for Policy Dividends
Cash Paid to and for Employees 3,597,447,707.85 3,147,424,488.01
Cash Paid for Taxes and Surcharges 1,266,038,737.35 1,148,544,384.30
Other Paid Cashes Related to Operational Acti vities 1,767,711,341.90 1,510,039,968.78
Subtotal of Operational Activi ties Free Cash Outflow 19,052,681,451.79 17,119,043,985.38
Net Cash Flow Generated by Operational Acti vities -538,236,952.24 -1,666,971,869.53
II. Cash Flow Generated by Investment Acti vities:
Cash Arising from Disposal of Investments 146,950,000.00
Cash Arising from Investment Incomes 10,459,991.82 1,738,010.28
Net Cash Arising from Disposal of Fixed Assets, Intangible Assets
4,594,633.81 552,893.76
and Other Long-term Assets
Net Cash Arising from Disposal of Subsidiaries and Other
Business Units
Other Received Cashes Related to Investment Activities 23,496,710.65 3,254,123.87
Investment Activities Free Cash Inflow Subtotal 38,551,336.28 152,495,027.91
Cash Paid for Purchase and Construction of Fixed Assets,
382,519,246.62 389,636,120.07
Intangible Assets and Other Long-term Assets
Cash Paid for Investments 13,200,000.00 144,300,000.00
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of Subsidiaries and Other Business 56,408,605.39
33
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Units
Other Paid Cashes Related to Investment Activities 26,708,528.22 100,527,143.08
Subtotal of Cash Outflow from Investment Acti vities 422,427,774.84 690,871,868.54
Net Amount of Cash Flow Generated by In vestment Acti vities -383,876,438.56 -538,376,840.63
III. Cash Flow Generated by Financing Acti vities:
Cash Arising from Absorbing Investments 43,114,250.00 77,742,285.10
Including: Cash Arising from Subsidiaries Absorbing Investments
43,114,250.00 77,742,285.10
by Minority Shareholders
Cash Arising from Borrowings 4,670,035,208.85 4,608,755,547.11
Other Received Cashes Related to Financing Acti vities 1,040,932,000.04 1,073,755,819.97
Financing Acti vities Free Cash Inflow Subtotal 5,754,081,458.89 5,760,253,652.18
Cash Paid for Debts Repayment 3,921,105,318.52 3,615,177,763.81
Cash Paid for Distribution of Dividends and Profits or Payment of
381,086,344.23 650,902,100.63
Interests
Including: Dividends and Profits Paid to Minority Shareholders by
Subsidiaries
Other Paid Cashes Related to Financing Acti vities 1,276,872,441.04 912,488,000.04
Financing Acti vities Free Cash Outflow Subtotal 5,579,064,103.79 5,178,567,864.48
Net Amount of Cash Flow Generated by Financing Activities 175,017,355.10 581,685,787.70
IV. Impact of Fluctuation in Exchange Rate on Cash and Cash
44,026,137.84 59,968,947.69
Equivalents
V. Net Increase in Cash and Cash Equivalents -703,069,897.86 -1,563,693,974.77
Add: Cash and Cash Equivalents at the Start of the Period 3,702,283,803.54 3,062,678,993.88
VI. Cash and Cash Equivalents at the End of the Period 2,999,213,905.68 1,498,985,019.11
8. Cash Flow Statement of the Parent Company from the Beginning of the Year to the End of the
Reporting Period
Unit: RMB
This Period's Amount Previous Period's
Item Name
of Occurrence Amount of Occurrence
I. Cash Flow Generated by Operational Acti vities:
Cash from Sales of Merchandise and Provision of Services 2,342,498,453.81 8,565,255,144.00
34
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Tax Refund 456,671,994.80 440,611,381.06
Other Received Cashes Related to Operational Acti vities 106,391,951.81 21,008,777.53
Subtotal of Operational Activi ties Free Cash Inflow 2,905,562,400.42 9,026,875,302.59
Cash Paid for Merchandise and Services 450,973,346.38 1,529,294,174.11
Cash Paid to and for Employees 2,238,092,627.31 1,986,373,244.95
Cash Paid for Taxes and Surcharges 872,684,753.09 839,005,205.65
Other Paid Cashes Related to Operational Acti vities 840,812,247.82 800,738,387.79
Subtotal of Operational Activi ties Free Cash Outflow 4,402,562,974.60 5,155,411,012.50
Net Cash Flow Generated by Operational Acti vities -1,497,000,574.18 3,871,464,290.09
II. Cash Flow Generated by Investment Acti vities:
Cash Arising from Disposal of Investments 107,950,000.00
Cash Arising from Investment Incomes 10,459,991.82 1,385,176.03
Net Cash Arising from Disposal of Fixed Assets, Intangible Assets
14,376,371.57 66,112,836.14
and Other Long-term Assets
Net Cash Arising from Disposal of Subsidiaries and Other
Business Units
Other Received Cashes Related to Investment Activities 11,929,552.28 29,536,675.15
Investment Activities Free Cash Inflow Subtotal 36,765,915.67 204,984,687.32
Cash Paid for Purchase and Construction of Fixed Assets,
157,802,380.37 91,063,022.15
Intangible Assets and Other Long-term Assets
Cash Paid for Investments 123,185,750.00 453,686,250.00
Net Cash Paid for Acquisition of Subsidiaries and Other Business
Units
Other Paid Cashes Related to Investment Activities
Subtotal of Cash Outflow from Investment Acti vities 280,988,130.37 544,749,272.15
Net Amount of Cash Flow Generated by In vestment Acti vities -244,222,214.70 -339,764,584.83
III. Cash Flow Generated by Financing Acti vities:
Cash Arising from Absorbing Investments
Cash Arising from Borrowings 1,963,462,853.53 1,488,603,047.41
Other Received Cashes Related to Financing Acti vities 3,926,000,253.84 111,547,737.65
Financing Acti vities Free Cash Inflow Subtotal 5,889,463,107.37 1,600,150,785.06
35
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Cash Paid for Debts Repayment 1,423,462,853.53 950,000,000.00
Cash Paid for Distribution of Dividends and Profits or Payment of
348,137,734.88 602,162,751.51
Interests
Other Paid Cashes Related to Financing Acti vities 2,678,522,588.68 4,041,706,031.13
Financing Acti vities Free Cash Outflow Subtotal 4,450,123,177.09 5,593,868,782.64
Net Amount of Cash Flow Generated by Financing Activities 1,439,339,930.28 -3,993,717,997.58
IV. Impact of Fluctuation in Exchange Rate on Cash and Cash
-243,602.64 -115,776.35
Equivalents
V. Net Increase in Cash and Cash Equivalents -302,126,461.24 -462,134,068.67
Add: Cash and Cash Equivalents at the Start of the Period 603,430,209.42 524,670,812.68
VI. Cash and Cash Equivalents at the End of the Period 301,303,748.18 62,536,744.01
II. Adjustments to the Financial Statements
1. Adjustments to Items in the Financial Statements of the Beginning of the Year 2019 according
to the New Standards for Financial Instruments, Revenue or Lease
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
Item Name December 31, 2018 January 01, 2019 Adjusted amount
Current Assets:
Monetary Funds 4,160,153,847.06 4,160,153,847.06
Deposit Reservation for Balance
Loans to Banks and Other Financial Institutions
Trading Financial Assets
Financial Liabilities at Fair Value through Profit or
Loss
Derivative Financial Assets
Bills Receivable 2,385,693,417.06 2,385,693,417.06
Accounts Receivable 10,191,372,777.38 10,191,372,777.38
Receivables Financing
Prepayments 126,891,259.00 126,891,259.00
36
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves Receivable
Other Receivables 398,170,769.40 398,170,769.40
Including: Interest Receivable 6,754,941.00 6,754,941.00
Dividends Receivable
Buying Back the Sale of Financial Assets
Inventory 3,035,579,709.14 3,035,579,709.14
Contract Assets
Holding for-sale Assets
Non-current Assets Due within 1 Year 578,733,057.27 578,733,057.27
Other Current Assets 402,255,078.05 402,255,078.05
Subtotal of Current Assets 21,278,849,914.36 21,278,849,914.36
Non-current Assets:
Granting of Loans and Advances
Investment in Creditor's Rights
Financial Assets Available for Sale 82,970,227.00 -82,970,227.00
Investment in Other Creditor's Rights
Held-to-maturity In vestments
Long-term Receivables 1,861,485,568.28 1,861,485,568.28
Long-term Equity In vestment 185,872,021.58 185,872,021.58
Investment in Other Equity Instruments
Other Non-current Financial Assets 82,970,227.00 82,970,227.00
Investment Property 346,831,376.55 346,831,376.55
Fixed Assets 1,407,471,330.83 1,407,471,330.83
Projects under Construction 226,191,587.11 226,191,587.11
Productive Biological Assets
Oil and Gas Assets
Right-of-use Assets
Intangible Assets 372,467,409.09 372,467,409.09
Development Expenditure
37
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Goodwill 109,745,412.21 109,745,412.21
Long-term Prepaid Expenses 37,117,918.55 37,117,918.55
Deferred Income Tax Assets 425,319,406.98 425,319,406.98
Other Non-current Assets 16,277,605.61 16,277,605.61
Subtotal of Non-current Assets 5,071,749,863.79 5,071,749,863.79
Total Assets 26,350,599,778.15 26,350,599,778.15
Current Liabilities:
Short-term Loan 1,851,709,561.83 1,851,709,561.83
Borrowings from Banks and Other Financial
Institutions
Borrowing Funds
Transactional Financial Liabilities 38,602,602.30 38,602,602.30
Financial Liabilities Measured in Fair Value with
38,602,602.30 -38,602,602.30
Changes Recorded into Current Profit and Loss
Derivative Financial Liabilities
Notes Payable 3,671,586,104.79 3,671,586,104.79
Accounts Payable 3,789,729,594.20 3,789,729,594.20
Received Pre-payments 343,297,891.20 343,297,891.20
Contract Liabilities
Financial Assets Sold for Repurchase
Deposit Taking and Interbank Deposit
Receiving from Vicariously Traded Securities
Receiving from Vicariously Sold Securities
Payroll Payable 1,124,358,611.94 1,124,358,611.94
Tax Pa yable 599,478,049.81 599,478,049.81
Other Payables 1,051,537,094.97 1,051,537,094.97
Including: Interest Payable 4,745,203.31 4,745,203.31
Dividends Payable
Service Charge and Commission Payable
Reinsurance Accounts Payable
Holding for-sale Liabilities
38
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Non-current Liabilities Due within 1 Year 25,500,000.00 25,500,000.00
Other Current Liabilities 70,845,639.51 70,845,639.51
Subtotal of Current Liabilities 12,566,645,150.55 12,566,645,150.55
Non-current Liabilities:
Insurance Contract Reserves
Long-term Loans 179,000,000.00 179,000,000.00
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities
Long-term Payables
Long-term Payroll Payable
Expected Liabilities 193,761,170.12 193,761,170.12
Deferred Income 58,693,533.40 58,693,533.40
Deferred Income Tax Liabilities 50,137,969.76 50,137,969.76
Other Non-current Liabilities 399,096,280.89 399,096,280.89
Subtotal of Non-current Liabilities 880,688,954.17 880,688,954.17
Total Liabilities 13,447,334,104.72 13,447,334,104.72
Shareholders' Equity:
Share Capital 2,997,621,930.00 2,997,621,930.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 1,501,180,862.83 1,501,180,862.83
Less: Treasury Share 807,733,586.00 807,733,586.00
Other Comprehensive Incomes 10,337,164.41 10,337,164.41
Special Reserves
Surplus Reserves 1,246,369,430.91 1,246,369,430.91
General Risk Reserves
Undistributed Profits 7,670,983,116.33 7,670,983,116.33
Total Shareholders' Equity Attributable to the Parent 12,618,758,918.48 12,618,758,918.48
39
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Company
Minority Shareholders' Equity 284,506,754.95 284,506,754.95
Total Shareholders' Equity 12,903,265,673.43 12,903,265,673.43
Total Liabilities and Shareholders' Equity 26,350,599,778.15 26,350,599,778.15
Balance Sheet of the Parent Company
Unit: RMB
Item Name December 31, 2018 January 01, 2019 Adjusted amount
Current Assets:
Monetary Funds 611,190,236.01 611,190,236.01
Trading Financial Assets
Financial Liabilities at Fair Value through Profit or
Loss
Derivative Financial Assets
Bills Receivable 952,572,702.92 952,572,702.92
Accounts Receivable 4,598,575,923.04 4,598,575,923.04
Receivables Financing
Prepayments 26,772,044.53 26,772,044.53
Other Receivables 6,954,655,863.03 6,954,655,863.03
Including: Interest Receivable 42,500.00 42,500.00
Dividends Receivable
Inventory 120,181,267.85 120,181,267.85
Contract Assets
Holding for-sale Assets
Non-current Assets Due within 1 Year 50,793,137.80 50,793,137.80
Other Current Assets 24,858,982.78 24,858,982.78
Subtotal of Current Assets 13,339,600,157.96 13,339,600,157.96
Non-current Assets:
Investment in Creditor's Rights
Financial Assets Available for Sale 80,496,000.00 -80,496,000.00
Investment in Other Creditor's Rights
40
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Held-to-maturity In vestments
Long-term Receivables 160,299,143.83 160,299,143.83
Long-term Equity In vestment 3,001,639,428.55 3,001,639,428.55
Investment in Other Equity Instruments
Other Non-current Financial Assets 80,496,000.00 80,496,000.00
Investment Property 183,321,198.72 183,321,198.72
Fixed Assets 496,363,638.38 496,363,638.38
Projects under Construction 151,072,585.67 151,072,585.67
Productive Biological Assets
Oil and Gas Assets
Right-of-use Assets
Intangible Assets 170,879,747.04 170,879,747.04
Development Expenditure
Goodwill
Long-term Prepaid Expenses 28,927,258.54 28,927,258.54
Deferred Income Tax Assets 40,821,902.57 40,821,902.57
Other Non-current Assets 929,380.00 929,380.00
Subtotal of Non-current Assets 4,314,750,283.30 4,314,750,283.30
Total Assets 17,654,350,441.26 17,654,350,441.26
Current Liabilities:
Short-term Loan 1,380,000,000.00 1,380,000,000.00
Transactional Financial Liabilities
Financial Liabilities Measured in Fair Value with
Changes Recorded into Current Profit and Loss
Derivative Financial Liabilities
Notes Payable 175,647,414.85 175,647,414.85
Accounts Payable 889,881,485.16 889,881,485.16
Received Pre-payments 80,361,211.04 80,361,211.04
Contract Liabilities
Payroll Payable 817,723,936.19 817,723,936.19
Tax Pa yable 351,294,836.50 351,294,836.50
41
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Other Payables 1,060,909,330.56 1,060,909,330.56
Including: Interest Payable 2,416,340.30 2,416,340.30
Dividends Payable
Holding for-sale Liabilities
Non-current Liabilities Due within 1 Year
Other Current Liabilities 6,464,333.12 6,464,333.12
Subtotal of Current Liabilities 4,762,282,547.42 4,762,282,547.42
Non-current Liabilities:
Long-term Loans
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities
Long-term Payables
Long-term Payroll Payable
Expected Liabilities 3,396,100.00 3,396,100.00
Deferred Income
Deferred Income Tax Liabilities
Other Non-current Liabilities 23,684,423.74 23,684,423.74
Subtotal of Non-current Liabilities 27,080,523.74 27,080,523.74
Total Liabilities 4,789,363,071.16 4,789,363,071.16
Shareholders' Equity:
Share Capital 2,997,621,930.00 2,997,621,930.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 1,497,801,068.88 1,497,801,068.88
Less: Treasury Share 807,733,586.00 807,733,586.00
Other Comprehensive Incomes
Special Reserves
Surplus Reserves 1,246,369,430.91 1,246,369,430.91
42
2019 Q3 Report of Zhejiang Dahua Technology Co., Ltd.
Undistributed Profits 7,930,928,526.31 7,930,928,526.31
Total Shareholders' Equity 12,864,987,370.10 12,864,987,370.10
Total Liabilities and Shareholders' Equity 17,654,350,441.26 17,654,350,441.26
2. Explanation of Compared Data before the Retroactive Adjustments according to the New
Standards for Financial Instruments or Lease Implemented from 2019
□ Applicable √ Not applicable
III. Audit Report
Whether the Q3 report has been audited.
□ Yes √ No
The Q3 report of the Company has not been audited yet.
Zhejiang Dahua Technology Co., Ltd.
Chairman: Fu Liquan
October 29, 2019
43
