东沣科技集团股份有限公司 2017 年半年度报告摘要 Stock Code: 200160 Short Form of the Stock: Dongfeng-B Notice No: 2017-070 Dongfeng Sci-Tech Group CO., LTD Summary of Semi-Annual Report 2017 I. Important Notice The summary is abstract from full-text of semi-annual report, for more details of operating results, financial condition and future development plan of the Company; investors should found in the full-text that published on media appointed by CSRC. Objection statement of directors, supervisors and senior executives Name Position Content and reason Statement Other directors attending the Meeting for semi-annual report deliberation except for the followed Name of director absent Title for absent director Reasons for absent Attorney Prompt of non-standard audit opinion □ Applicable √ Not applicable Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting period □ Applicable √ Not applicable There is no plan of cash bonus, dividend distribution and capitalizing of common reserves carried out by the Company Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period □ Applicable √ Not applicable II. Company profile 1. Company Profile Short form of the stock Dongfeng-B Stock code 200160 Stock exchange for listing Shenzhen Stock Exchange Short form of the Stock before Nanjiang-B changed (if applicable) Person/Way to contact Secretary of the Board Rep. of security affairs Name Li Wenying Wang Haijian Office add. XiaBanCheng Town, Chengde County, XiaBanCheng Town, Chengde County, Hebei Hebei Province Province Tel. 0314-3115048 0314-3115048 E-mail liwy@dftechgroup.com wanghj@dftechgroup.com 2. Main financial data and indexes Whether it has retroactive adjustment or re-statement on previous accounting data □Yes √ No Current period Same period of last year Changes over last year Operating income (RMB) 101,563,994.47 191,414,481.74 -46.94% 1 东沣科技集团股份有限公司 2017 年半年度报告摘要 Net profit attributable to shareholders of -3,145,668.96 1,801,869.94 -274.58% the listed company (RMB) Net profit attributable to shareholders of the listed company after deducting -3,168,677.19 2,072,748.29 -252.87% non-recurring gains and losses (RMB) Net cash flow arising from operating 28,687,301.69 76,854,983.97 -62.67% activities (RMB) Basic earnings per share (RMB/Share) -0.004 0.003 -233.33% Diluted earnings per share (RMB/Share) -0.004 0.003 -233.33% Weighted average ROE -0.88% 0.51% -1.39% Changes over end of last Current period-end Period-end of last year year Total assets (RMB) 571,444,743.94 626,756,827.34 -8.83% Net assets attributable to shareholder of 355,700,272.96 359,826,450.98 -1.15% listed company (RMB) 3. Number of shares and share-holding In Share Total preference shareholders Total common stock shareholders in with voting rights recovered 19,555 0 reporting period-end at end of reporting period (if applicable) Top ten shareholders Amount of Amount of non-circulation shares Number of share Full name of Nature of Proportion of pledged/frozen Shareholders shareholder shares held shares held held State of share Amount Domestic 29.49% 208,324,800 208,324,800 Wang Dong nature person Everbright Overseas legal 13.28% 93,833,093 0 Securities person (H.K.) Co., Ltd. GUOTAI JUNAN SECURITIES( Overseas legal 6.87% 48,524,062 0 person HONGKONG) LIMITED Domestic Chengde North non-state 2.62% 18,517,651 18,517,651 Industrial owned legal Corporation person Wang Domestic 1.89% 13,327,891 13,327,891 Zhengsong nature person Wang Domestic 1.03% 7,258,007 0 Wensheng nature person 2 东沣科技集团股份有限公司 2017 年半年度报告摘要 Domestic 0.95% 6,708,495 0 Zhou Haihong nature person Domestic 0.73% 5,158,000 0 Li Tianyun nature person Shanghai Overseas legal 0.71% 4,995,920 0 Wanguo (H.K) person Securities Domestic 0.57% 4,023,256 0 Chen Yan nature person Explanation on associated The Company is unknown whether there exists associated relationship or belongs to consistent relationship among the aforesaid actor regulated by “management method for acquisition of listed company” among the above shareholders said shareholders. Explanation on shareholders involving margin business (if N/A applicable) 4. Changes of controlling shareholders or actual controller Controlling shareholder changed in the Period □ Applicable √ Not applicable Controlling shareholders had no change in reporting period. Actual controller changed in the Period □ Applicable √ Not applicable Actual controller had no change in reporting period. 5. Total preferred shareholders and top 10 shares held by preferred shareholders □ Applicable √ Not applicable The Company has no preferred shareholders 6. Corporate bond Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when semi-annual report approved for released or fail to cash in full on due No III. Discussion and analysis of operation 1. Operation status in the period Does the Company need to comply with the disclosure requirements of the special industry Yes Real estate industry (I) Situation analysis of the real estate industry during the reporting period In the first half of 2017, the national real estate macro-control continued to strengthen, different cities implemented corresponding policies to actively deepen the real estate policy control and carry out the housing price controlling and destocking at the same time. 3 东沣科技集团股份有限公司 2017 年半年度报告摘要 On the one hand, the hot cities continued the strong regulation pattern, the third and fourth-tier cities around also regulated and controlled synchronously, the traditional restrictions on purchase and loans continued to upgrade, the credit funds for both supply and demand ends of real estate gradually tightened, and the effects of policy since the beginning of the year gradually appeared; on the other hand, most of the third and fourth-tier cities continued the destocking, some cities with significant decrease in stock pressure also timely introduced the market stabilizing measures. During the reporting period, Hebei Province implemented the real estate control from the provincial level, successively introduced a series of regulatory policies such as the purchase restriction, loan restriction, and price restriction, the real estate market gradually returned to be rational. In the long run, with the continuous promotion of Beijing-Tianjin-Hebei integration and the requirements of the capital to the evacuation and industrial transfer in peripheral areas, the market prospects of the cities around Beijing are still good. (II) The operation of the company during the reporting period During the reporting period, in the face of severe policy and market situation of real estate, the company complied with the changes in the market and accelerated the sale of existing inventories, and planned to promote the construction of new projects according to the market situation at the same time; on the other hand, on the basis of ensuring the steady development of existing businesses, actively promoted the company's business transformation, expanded and cultivated the new business growth point. During the reporting period, the company achieved main business income of RMB 101,564,000, net profits attributable to the parent company of RMB -3,145,700. Up to the end of the reporting period, the total assets of the company were RMB 571,444,700 and the net assets were RMB 355,700,300. Sales of the property (Nanjiang Huijing Tiandi) for Jan.-June 2017 are as: Operation Operation cost Gross Clearing the Type of Ratio Area presale in income (in 10 (in 10 profit Item area in the operation (%) the period (㎡) thousand thousand margin period (㎡) Yuan) Yuan) (%) Nanjiang Residence 9,408.24 22,989.40 9,946.52 8,384.18 15.71 Huijing 100 Commerce 2,263.01 - - - - Tiandi Total 11,671.25 22,989.40 9,946.52 8,384.18 15.71 The Company has no new land reserves and new constructed property in the Period. 2. Matters relevant to financial report (1) Particulars about the changes in aspect of accounting policy, estimates and calculation method compared with the accounting period of last year □ Applicable √ Not applicable The Company had no particulars about the changes in aspect of accounting policy, estimates or calculation method in the reporting period. (2) Particulars about retroactive restatement on major correction for accounting errors in reporting period □ Applicable √ Not applicable The company had no particulars about retroactive restatement on major correction for accounting errors in the reporting period. 4 东沣科技集团股份有限公司 2017 年半年度报告摘要 (3) Particulars about the change of consolidation range compared with the accounting period of last year √Applicable □Not applicable (1) Subsidiary, special purpose vehicle and operational entity with control over by means of entrusted management or lessee newly included in the consolidate scope in the Period: Name Reason for changes Kefeng Trading Enterprise derivated Kefeng Engineering Enterprise derivated On March 6, 2017, approved by Chengde Administration for Industry and Commerce, Chengde Nanjiang Trading Co., Ltd. was divided into Chengde Kefeng Trading Co., Ltd., Chengde Kefeng Project Management Co., Ltd. and Chengde Nanjiang Trading Co., Ltd. Among them, the registered capital of Chengde Kefeng Trading Co., Ltd. is RMB 8.5 million, Dongfeng Sci-Tech Group Co., Ltd. has a wholly-owned holding in the company, its business scope includes the sale of mechanical equipment, machine parts, and mechanical and electrical products, and the housing leasing services; the registered capital of Chengde Kefeng Project Management Co., Ltd. is RMB 500,000.00, Dongfeng Sci-Tech Group Co., Ltd. has a wholly-owned holding in the company, its business scope includes the project management and consulting services, the infrastructure construction, and the housing leasing services; the registered capital of Chengde Nanjiang Trading Co., Ltd. is changed to RMB 1 million, Dongfeng Sci-Tech Group Co., Ltd. has a wholly-owned holding in the company, its business scope includes the sale of hardware and mechanical products, building materials, and mechanical equipment, and the housing rental services. (2) Subsidiary, special purpose vehicle and operational entity with control lost by means of entrusted management or rent-out, which no longer include in consolidate scope in the Period: Name Reason for changes Runhua RW The Company release the consistent action with shareholder Lan Chunhong On April 26, 2017, the company signed the Termination Agreement of Concerted Action Person Agreement with the shareholder Lan Chunhong of Runhua Nongshui (Tianjin) International Trade Co., Ltd., after the termination of the original Concerted Action Person Agreement, both parties no longer maintain the concerted actions to the company’s daily production and operation and the decision-making of other major matters, and each party makes opinions independently and exercises the right to vote in accordance with the laws and regulations and normative documents and the provisions of the articles of association and their own wishes, both parties are no longer subject to the original agreement. In accordance with the relevant provisions of the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements, after Mr. Lan Chunhong relieved the concerted action person relations with our company, our company would hold 30% equity stake of Runhua Nongshui but no longer have the control power to Runhua Nongshui, the company would no longer include Runhua Nongshui in the consolidated financial statement from the date of losing the control power to it, and check and calculate by equity method. 5