Wafangdian Bearing Company Limited the Q3 Report for 2017 Wafangdian Bearing Company Limited the Q3 Report for 2017 2017-46 October 2017 Chapter I. Important Prompts The board of directors, board of supervisors, directors, supervisors and the top management guarantee there is no false record, misleading statement or major omission in the report, and take responsibilities for the truth, accuracy and completeness of the contents. Besides the following directors, all the other directors attended the Board meeting and discussed the report. Name Post Reasons Assignee name Wan Shouyi Independent director Busy work Liu Yuping The charger of company Mr. Meng Wei, financial controller Ms. Sun Najuan and the charger of accounting department Mr. Wang Jiyuan made the statement: guarantee the truth, completeness of the financial report of the third quarter report. Chapter II. Main financial dates and shareholder changes 2.1 Main accounting data and financial indicators Unit: Yuan +/-(%)compared between 2017.09.30 2016.12.31 the end of current period and last year Total assets(RMB) 3,368,772,988.61 3,553,947,227.09 -5.21% Owners Equity Attributed to Shareholders of Listed 1,378,331,607.49 1,379,337,925.55 -0.07% Company(RMB) 2017.07-.09 +/-(%) to period 2017.01-.09 +/-(%) to period Turnover(RMB) 484,963,005.25 -15.02% 1,620,463,580.58 -4.46% Net profit attributable to shareholders of 386,046.39 3,019,681.94 the listed company(RMB) Net profit attributable to the shareholders of the -5,518,330.61 -59.34% -7,080,584.92 -89.71% listed company and after deducting of non-recurring gain/loss(RMB) Net Cash flow generated by business -- -- -40,977,936.68 -313.58% operation(RMB) Basic earnings per share(Yuan/share) 0.0010 0.0080 Diluted earnings per share(Yuan/share) 0.0010 0.0080 Net assets yield (%) 0.03% 0.77% 0.22% 4.29% Abnormal profit and loss items √Applicable □Not applicable Unit: Yuan Abnormal profit and loss items 2017.01-2017.09 Profits and losses relating to disposal of fixed assets -10,614.25 Government grants recorded into profit or loss during current 4,890,166.91 period Profits and losses relating to the debt restructure 1,697,754.73 Other non-business income and expenditures other than the above 4,701,345.34 1 Less: Influenced amount of income tax 1,178,385.87 Total 10,100,266.86 For the Companys non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering their Securities to the Public–Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering their Securities to the Public–Non-recurring Gains and Losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □Applicable √Inapplicable 2.2. The statement of total number of shareholders and the first 10 shareholders of current shares in the end of the report period Unit: Share Total number of shareholder at the end of 6,875 report period The situation of the first 10 shareholders of current shares Total shares Non-current Impawned or Frozen Shares Name Nature Ratio(%) held shares held Status Amount Wafangdian Bearing State-owned 60.61% 244,000,000 244,000,000 Group Corporation shareholder Foreign AKTIEBOLAGET SKF 19.70% 79,300,000 shareholder BOCI SECURITIES Foreign 1.37% 5,516,953 LIMITED shareholder Domestic Huang Junyue 1.18% 4,768,300 shareholder Domestic Hu Xiaofeng 0.47% 1,879,277 shareholder Domestic Jin Yunhua 0.33% 1,311,256 shareholder GUOTAI JUNAN Foreign SECURITIES(HONGK 0.29% 1,184,900 shareholder ONG) LIMITED Domestic Zhou Jie 0.25% 1,002,100 shareholder MAN,KWAI Foreign private 0.18% 713,101 WING文贵荣 shareholder Domestic Ma Yuancheng 0.15% 596,966 shareholder The situation of the first 10 shareholders of current shares Category of Shares Name Current shares held at end of year (Note 4) Categories Amount AKTIEBOLAGET SKF 79,300,000 B 79,300,000 BOCI SECURITIES LIMITED 5,516,953 B 5,516,953 Huang Junyue 4,768,300 B 4,768,300 Hu Xiaofeng 1,879,277 B 1,879,277 Jin Yunhua 1,311,256 B 1,311,256 GUOTAI JUNAN 1,184,900 B 1,184,900 SECURITIES(HONGKONG) LIMITED Zhou Jie 1,002,100 B 1,049,915 MAN,KWAI WING文贵荣 713,101 B 713,101 Ma Yuancheng 596,966 B 596,966 Zhou Junlin 547,801 B 547,801 Notes to relationship or “action in There was no relationship and consistent activities between the first big shareholder and other 2 concert”among the top ten shareholders. shareholders or the top ten common stock holders; The relationship among other shareholders, top ten circulation shareholders, top ten circulation shareholders and other shareholders was not clear. Whether the top ten shareholders with common stock and top ten shareholders with unlimited common stock agree with the company to buy back the stock or not? □Applicable √Inapplicable Chart of preferred stock shareholders and the first tenth shareholders holding shares □Applicable √Inapplicable Chapter III. Important Items 3.1 The great changes in company’s key financial statement, financial indicators, and the reasons √Applicable □Not applicable Unite:0000Yuan Beginning End of +/-(%) to No. Items peirod year Explanation period The main reason is that the payment of the bill to the supplier is about 171.41 million yuan, resulting 1 Monetary fund 11,228.4 18,441.6 -39.1% in net cash flow of -40.98 million yuan, so the money funds are reduced from the beginning of the year The balance of the bill is more than the bill payment 2 Bills receivable 18,827.3 10,918.1 72.4% to the supplier, so the balance of the bill is increased at the beginning of the year Accounts payable Mainly based on the market changes,the advance 3 2,520.8 1,608.5 56.7% in advance of material mills increased Other accounts Mainly caused by prepaid expenses increase from 4 2,587.7 1,970.6 31.3% receivable the beginning. The main reason is that the initial funding of finished products has been reduced by 87.17million,the production fund has been reduced by 2 million at 5 Iventory 75,813.1 84,242.9 -10.0% the beginning of the period,and the reserve fund has increased by 4.52million at the beginning of the period,and the low value consumables have increased by 360,000 at the beginning of the period Mainly because the branch company’s pending 6 Other current assets 491.5 720.3 -31.8% deduction entry tax is less than the initial decrease. Long-term prepaid Mainly increase spherical decorate 279000 7 73.1 52.1 40.2% expense modernize of the company. The main issue is the bill issued to the supplier and 8 Note payable 26,656.1 42,551.5 -37.4% the repayment of the notes payable due to the discount. It is mainly the end value added tax and the tax 9 Tax payable 737.3 1,914.1 -61.5% attached, the sale of the land value added tax is decreasing from the beginning. This is mainly due to a reduction in interest on 10 Interest payable - 92.7 -100.0% borrowing. 3 At the beginning of this period, 90 million Non-current liabilities 11 5,000.0 9,000.0 -44.4% borrowings have been repaid, the aditional 50 due within I year million yuan is a long-term loan due in a year. This period the long-term loan of 50 million yuan 12 Long-term loan 5,000.0 -100.0% due in one year will be reclassified into a - non-current liability in a year. 2017.1.1-9.3 Last +/-(%) to Items Explanation 0 peirod period It is mainly affected by the change of the camp, the Tax & surcharges for 13 1,458.84 831.33 75.5% current tax and the increase of the year-on-year main operations growth accounting inconsistencies. It is mainly due to the recovery of the commodity Loss of impairment value of this period, the sale of overstocked goods, 14 -1,252.37 -575.57 117.6% of assets etc., to return to the inventory price to be caused by the price. Mainly because working capital loan interest year-on-year increase of 3.65 million yuan, discount rates rose 2.23 million, year-on-year increase of 15 Financial expense 3,057.55 2,082.91 46.8% 1.83 million exchange loss, exchange earnings fell 5.62 million, long-term borrowing interest year-on-year decline of 3.65 million." According to the financial information [2017] no.15, government subsidies related to daily activities will 16 Other income 14.70 0.00 be counted into other benefits in accordance with the economic business substance. This is mainly due to the decrease in the current Non-operating 17 1,155.20 1,883.86 -38.7% non-current asset disposal, government subsidies revenue and debt restructuring. The main issue is that there is no loss due to debt 18 Non-operating cost 27.33 200.70 -86.4% restructuring in this period. Mainly, the operation quality is stabilizing, the cost control is strengthened, the management expenses 19 Net profit 301.97 -5,381.18 -105.6% and sales expenses are obviously reduced, and the profitability of the products is promoted. Other cash received Mainly because the reduction in government 20 relating to operating 545.9 836.6 -34.7% subsidies received during this period. activities The main payment of VAT and its attached tax, the 21 Tax payments 6,516.9 3,763.4 73.2% sale of land value added tax increases. Mainly because this period received 240,000 Cash received from dividends from Shanghai Aaimuyi 22 - 24.0 -100.0% investment incomes Electromechanical Equipment Chain Company Limited in 2014. Net cash received This period is mainly for the sale of the Harbin real from disposal of fixed estate sales of 486.8 million yuan, and the same 23 assets, intangible 492.2 1,000.0 -50.8% period 10 million is received the asset payment to assets and other the group. long-term assets 4 Cash paid to acquire fixed assets, Mainly because the construction of payment decline 24 intangible assets and 827.7 4,909.9 -83.1% compared with last peirod. other long-term assets Other proceeds Due to the impact of financing,resulting in the other 25 relating to financing 49,186.4 33,884.4 45.2% cash received that related to financing activities has activities increased over the same period. Due to the impact of financing,resulting in the other Cash paid for other 26 44,824.8 30,000.0 49.4% cash payment related to financing activities has financing activities increased over the same period. Effects of foreign 27 exchange rate -125.6 185.5 -167.7% It's mostly about dollar exchange rate movements. changes on cash 3.2 The situation of major items in progress and the analysis explanation on its effect and resolved proposal. None 3.3 The fulfillment of the items that the company, shareholder with more than 5% shares and the actual controller etc. during the report period, or before it. □ Applicable √Not applicable 3.4 Operation forecast for year 2017 □ Applicable √Not applicable 3.5 Security investment information Statement of holding other listing company equity □Applicable √Not applicable 3.6 Statement of holding other listing company equity □Applicable √Not applicable 3.7 Reception of investigations,communications,or interviews in the report period Time/date Place Way Type of visitors Visitors Index catalog Understand the companys Telephone July 11,2017 Office Private investor Private investor production and operation communication status 3.8 Violation of guaranty □ Applicable √Not applicable 3.9 Controlling shareholders and their related parties' non-operational appropriation of funds for listed companies □ Applicable √Not applicable 5 3.10 social responsibility of targeted poverty alleviation Chapter IV Financial report 1. Consolidated Balance Sheet. Unit: RMB Yuan Item Closing Balance Opening Balance Current assets : Monetary fund 112,283,615.19 184,416,042.97 Financial assets held-for-trading Bills receivable 188,272,822.75 109,181,156.69 Account receivable 1,197,883,258.38 1,249,891,874.39 Account paid in advance 25,207,647.16 16,084,843.68 Interest receivable Dividend receivable Other receivables 25,877,401.13 19,705,788.69 Inventory 758,131,440.02 842,429,282.92 Non-current assets due within 1 year Other current assets 4,915,142.95 7,202,729.14 Total current assets 2,312,571,327.58 2,428,911,718.48 Non-current assets Financial assets available-for-sale 2,000,000.00 2,000,000.00 Investments held-to-maturity Long-term receivable Long-term equity investment Investment property Fixed assets 723,752,065.95 785,568,617.02 Construction in progress 190,487,039.27 194,439,963.77 Construction materials Fixed assets disposal Biological assets Gas and petrol assets Intangible assets 127,602,305.89 130,876,465.81 Development expenditure Goodwill Long-term prepaid expense 731,149.58 521,361.67 Deferred tax assets 11,629,100.34 11,629,100.34 Other non-current assets Total non-current assets 1,056,201,661.03 1,125,035,508.61 Total assets 3,368,772,988.61 3,553,947,227.09 Current liabilities Short-term loan 627,000,000.00 549,900,000.00 Note payable 266,561,068.50 425,514,610.26 Accounts payable 861,719,129.16 833,899,714.83 Accounts received in advance 22,374,597.22 26,959,477.14 Commission charge payable Accrued payroll 16,857,428.01 17,256,851.42 6 Tax payable 7,372,955.20 19,141,230.94 Interest payable 927,000.00 Dividends payable Other payables 92,651,635.02 111,790,682.03 Non-current liabilities due within I year 50,000,000.00 90,000,000.00 Other current liabilities 4,151,272.50 4,704,022.50 Total current liabilities 1,948,688,085.61 2,080,093,589.12 Non-current liabilities Long-term loan 50,000,000.00 Debenture payable Long-term payables 1,597,305.72 1,597,305.72 Special payables 296,698.98 296,698.98 Contingent liabilities Deferred income 38,919,994.85 41,682,411.76 Deferred tax liabilities 939,295.96 939,295.96 Other non-current liabilities Total non-current liabilities 41,753,295.51 94,515,712.42 Total liabilities 1,990,441,381.12 2,174,609,301.54 Owner’s equity (shareholders’ equity) Capital stock 402,600,000.00 402,600,000.00 Capital public reserves 485,691,050.47 485,691,050.47 Less: treasury share Surplus reserve 131,442,909.11 131,442,909.11 Undistributed profit 358,597,647.91 359,603,965.97 Difference of foreign currency translation Equity attributable to parent company 1,378,331,607.49 1,379,337,925.55 Minority interest Total owner’s equity 1,378,331,607.49 1,379,337,925.55 Total owner’s equity and liabilities 3,368,772,988.61 3,553,947,227.09 Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger : Wang Jiyuan 2. Balance Sheet of Parent Company Unit: RMB Yuan Item Opening Balance Closing Balance Current assets : Monetary fund 106,898,160.27 160,858,258.16 Financial assets held-for-trading Bills receivable 177,055,822.75 105,343,542.29 Account receivable 1,199,484,126.84 1,271,216,667.68 Account paid in advance 21,234,938.01 14,150,176.66 Interest receivable Dividend receivable Other receivables 22,078,955.53 18,675,828.91 Inventory 690,878,785.31 781,029,612.11 Non-current assets due within 1 year Other current assets 3,091,630.30 4,853,373.30 Total current assets 2,220,722,419.01 2,356,127,459.11 Non-current assets Financial assets available-for-sale 2,000,000.00 2,000,000.00 Investments held-to-maturity Long-term receivable Long-term equity investment 211,583,897.67 211,583,897.67 Investment property Fixed assets 492,882,127.06 540,414,895.87 7 Construction in progress 190,171,870.87 194,408,579.15 Construction materials Fixed assets disposal Biological assets Gas and petrol assets Intangible assets 108,635,633.04 111,375,548.98 Development expenditure Goodwill Long-term prepaid expense 470,488.90 521,361.67 Deferred tax assets 10,355,933.09 10,355,933.09 Other non-current assets Total non-current assets 1,016,099,950.63 1,070,660,216.43 Total assets 3,236,822,369.64 3,426,787,675.54 Current liabilities Short-term loan 627,000,000.00 549,900,000.00 Note payable 266,561,068.50 425,514,610.26 Accounts payable 766,649,277.61 754,015,698.35 Accounts received in advance 24,143,089.58 26,840,178.68 Commission charge payable Accrued payroll 9,977,284.75 10,295,412.34 Tax payable 4,225,867.09 15,496,981.29 Interest payable 927,000.00 Dividends payable Other payables 51,747,864.16 72,962,085.99 Non-current liabilities due within I year 50,000,000.00 90,000,000.00 Other current liabilities 4,053,724.50 4,606,474.50 Total current liabilities 1,804,358,176.19 1,950,558,441.41 Non-current liabilities Long-term loan 50,000,000.00 Debenture payable Long-term payables Special payables 296,698.98 296,698.98 Contingent liabilities Deferred income 34,627,882.85 37,390,299.76 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 34,924,581.83 87,686,998.74 Total liabilities 1,839,282,758.02 2,038,245,440.15 Owner’s equity (shareholders’ equity) Capital stock 402,600,000.00 402,600,000.00 Capital public reserves 485,678,443.26 485,678,443.26 Less: treasury share Surplus reserve 131,442,909.11 131,442,909.11 Undistributed profit 377,818,259.25 368,820,883.02 Total owner’s equity 1,397,539,611.62 1,388,542,235.39 Total owner’s equity and liabilities 3,236,822,369.64 3,426,787,675.54 3. Consolidated Income Sheet of report period Unit: RMB Yuan Item Account for the current period Account for the prior period 1.Total operating income 484,963,005.25 570,651,513.49 Including: Operating revenue 484,963,005.25 570,651,513.49 Interest income Handling charge and commission income 2.Total operating cost 491,459,480.13 584,514,344.89 8 Including: Operating cost 431,261,903.51 516,065,410.83 Interest expenses Handling charge and commission income Tax & surcharges for main operations 4,755,972.30 3,617,930.44 Selling expenses 38,858,186.04 44,298,048.43 Administrative expense 14,647,695.23 17,851,425.15 Financial expense 14,559,249.81 8,438,341.22 Loss of impairment of assets -12,623,526.76 -5,756,811.18 Add: Gains of change of fair value of assets(loss with"-") Investment income(loss with "-") Including: Income form investment on associated enterprise and jointly enterprise Other income 147,000.00 3.Operating profit (loss with"-") -6,349,474.88 -13,862,831.40 Add: Non-operating revenue 6,779,448.30 4,834,367.10 Less: Non-operating cost 43,927.03 601,591.65 Including: loss on disposal of non-current assets 4.Total profit(loss with"-") 386,046.39 -9,630,055.95 Less: Income tax expenses 5. Net profit(Loss with"-") 386,046.39 -9,787,613.48 Net profit attributable to shareholders of parent company 386,046.39 -9,787,613.48 Minority interests 6. Other comprehensive returns 7. Total comprehensive returns 386,046.39 -9,787,613.48 Total comprehensive returns available for parent company 386,046.39 -9,787,613.48 Total comprehensive returns available for minority shareholders 8.Earnings per share (1) Basic earnings per share 0.0010 -0.0240 (2) Diluted earnings per share 0.0010 -0.0240 Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Wang Jiyuan 4. Income Sheet of Parent Company of report period Unit: RMB Yuan Item Account for the current period Account for the prior period 1.Total operating income 465,804,543.27 590,797,808.88 Less: Operating cost 414,771,007.66 541,938,280.53 Interest expenses Handling charge and commission income Tax & surcharges for main operations 3,436,728.55 3,246,628.88 Selling expenses 38,292,795.51 43,776,816.73 Administrative expense 9,290,333.98 12,115,770.97 Financial expense 14,564,619.91 8,448,440.95 Loss of impairment of assets -12,623,526.76 -5,756,811.18 Add: Gains of change of fair value of assets(loss with"-") Investment income(loss with "-") Including: Income form investment on associated enterprise and jointly enterprise Other income 147,000.00 2.Operating profit (loss with"-") -1,780,415.58 -12,971,318.00 Add: Non-operating revenue 6,697,156.64 3,510,626.12 Less: Non-operating cost 24,938.34 564,621.14 Including: loss on disposal of non-current assets 3.Total profit(loss with"-") 4,891,802.72 -10,025,313.02 Less: Income tax expenses 9 4. Net profit(Loss with"-") 4,891,802.72 -10,025,313.02 5. Other comprehensive returns 6. Total comprehensive returns 4,891,802.72 -10,025,313.02 7.Earnings per share (1) Basic earnings per share 0.010 -0.020 (2) Diluted earnings per share 0.010 -0.020 5. Consolidated Income Sheet from the beginning of the year to the end of report period Unit: RMB Yuan Account for the current Item Account for the prior period period 1.Total operating income 1,620,463,580.58 1,696,106,545.47 Including: Operating revenue 1,620,463,580.58 1,696,106,545.47 Interest income Handling charge and commission income 2.Total operating cost 1,628,869,551.37 1,766,592,395.22 Including: Operating cost 1,435,457,545.50 1,559,667,437.52 Interest expenses Handling charge and commission income Tax & surcharges for main operations 14,588,420.45 8,313,281.88 Selling expenses 114,878,365.96 129,040,734.31 Administrative expense 45,893,417.05 54,497,602.71 Financial expense 30,575,518.56 20,829,082.94 Loss of impairment of assets -12,523,716.15 -5,755,744.14 Add: Gains of change of fair value of assets(loss with"-") Investment income(loss with "-") Including: Income form investment on associated enterprise and jointly enterprise Other income 147,000.00 3.Operating profit (loss with"-") -8,258,970.79 -70,485,849.75 Add: Non-operating revenue 11,551,972.29 18,838,640.22 Less: Non-operating cost 273,319.56 2,007,032.35 Including: loss on disposal of non-current assets 4.Total profit(loss with"-") 3,019,681.94 -53,654,241.88 Less: Income tax expenses 5. Net profit(Loss with"-") 3,019,681.94 -53,811,799.41 Net profit attributable to shareholders of parent company 3,019,681.94 -53,811,799.41 Minority interests 6. Other comprehensive returns 7. Total comprehensive returns 3,019,681.94 -53,811,799.41 Total comprehensive returns available for parent company 3,019,681.94 -53,811,799.41 Total comprehensive returns available for minority shareholders 8.Earnings per share (1) Basic earnings per share 0.0080 -0.130 (2) Diluted earnings per share 0.0080 -0.130 6. Income Sheet of Parent Company from the beginning of the year to the end of report period Unit: RMB Yuan Item Account for the current period Account for the prior period 1.Total operating income 1,587,552,185.01 1,729,949,375.65 Less: Operating cost 1,414,588,162.82 1,607,950,444.59 Interest expenses Handling charge and commission income 10 Tax & surcharges for main operations 12,072,730.51 7,346,262.32 Selling expenses 113,103,481.25 127,543,404.17 Administrative expense 27,679,263.28 35,828,333.56 Financial expense 30,624,886.06 20,852,114.98 Loss of impairment of assets -12,523,716.15 -5,755,744.14 Add: Gains of change of fair value of assets(loss with"-") Investment income(loss with "-") Including: Income form investment on associated enterprise and jointly enterprise Other income 147,000.00 2.Operating profit (loss with"-") 2,154,377.24 -63,815,439.83 Add: Non-operating revenue 11,104,219.80 15,688,741.19 Less: Non-operating cost 235,220.81 1,936,865.74 Including: loss on disposal of non-current assets 3.Total profit(loss with"-") 13,023,376.23 -50,063,564.38 Less: Income tax expenses 4. Net profit(Loss with"-") 13,023,376.23 -50,063,564.38 5. Other comprehensive returns 6. Total comprehensive returns 13,023,376.23 -50,063,564.38 7.Earnings per share (1) Basic earnings per share 0.030 -0.120 (2) Diluted earnings per share 0.030 -0.120 7. Consolidated Cash Flow Statement. Unit: RMB yuan Item Account for the current period Account for the prior period 1.Cash from operating activities Cash received from sale of goods or rendering of services 714,561,776.75 857,736,739.73 Refund of taxes and fares 117,978.34 Other cash received relating to operating activities 5,458,961.79 8,365,849.98 Sub-total of cash inflows 720,020,738.54 866,220,568.05 Cash paid for goods and services 440,090,540.44 489,459,375.45 Cash paid to or on behalf of the employees 174,249,694.48 227,625,238.56 Tax payments 65,168,685.70 37,634,102.44 Other cash paid relating to operating activities 81,489,754.60 92,315,861.95 Sub-total of cash outflows 760,998,675.22 847,034,578.40 Net cash flows from operating activities -40,977,936.68 19,185,989.65 2.Cash flows from investing activities Cash received from return of investment Cash received from investment incomes 240,000.00 Net cash received from disposal of fixed assets, intangible 4,921,699.20 10,000,000.00 assets and other long-term assets Proceeds from sale of subsidiaries and other operating units Other cash received relating to investing activities 240,000.00 Sub-total of cash inflows 4,921,699.20 10,480,000.00 Cash paid to acquire fixed assets, intangible assets and 8,276,976.39 49,098,685.37 other long-term assets Cash paid to acquire investment Net cash used in acquiring subsidiaries and other operating units Other cash paid relating to investing activities Sub-total of cash outflows 8,276,976.39 49,098,685.37 Net cash flows from investment activities -3,355,277.19 -38,618,685.37 3.Cash flows from financing activities 11 Cash received from absorbing investment Including: Cash received from increase in minority interest Proceeds from borrowings 470,000,000.00 550,000,000.00 Other proceeds relating to financing activities 491,863,671.22 338,844,256.94 Sub-total of cash inflows 961,863,671.22 888,844,256.94 Repayment of borrowings 482,900,000.00 437,000,000.00 Distribution of dividends or profits & interest expenses 24,661,404.85 24,841,968.00 Including: dividends or profit paid to minority interest Cash paid for other financing activities 448,248,452.22 300,000,000.00 Sub-total of cash outflows 955,809,857.07 761,841,968.00 Net cash flows from financing activities 6,053,814.15 127,002,288.94 4. Effects of foreign exchange rate changes on cash -1,256,122.04 1,855,133.50 5.Net increases in cash and cash equivalents -39,535,521.76 109,424,726.72 Add: cash and cash equivalent, at the beginning of year 142,233,376.52 78,556,030.56 6.Cash and cash equivalent at the end of the year 102,697,854.76 187,980,757.28 8. Cash Flow Statement Of Parent Company. Unit: RMB yuan Item Account for the current period Account for the prior period 1.Cash from operating activities Cash received from sale of goods or rendering of services 735,865,490.56 841,594,457.53 Refund of taxes and fares Other cash received relating to operating activities 5,096,996.55 4,654,548.80 Sub-total of cash inflows 740,962,487.11 846,249,006.33 Cash paid for goods and services 498,423,983.26 532,986,279.54 Cash paid to or on behalf of the employees 137,692,018.58 185,417,346.48 Tax payments 53,948,060.87 27,853,525.07 Other cash paid relating to operating activities 75,053,578.28 86,926,925.85 Sub-total of cash outflows 765,117,640.99 833,184,076.94 Net cash flows from operating activities -24,155,153.88 13,064,929.39 2.Cash flows from investing activities Cash received from return of investment Cash received from investment incomes 240,000.00 Net cash received from disposal of fixed assets, intangible 4,912,699.20 10,000,000.00 assets and other long-term assets Proceeds from sale of subsidiaries and other operating units Other cash received relating to investing activities 240,000.00 Sub-total of cash inflows 4,912,699.20 10,480,000.00 Cash paid to acquire fixed assets, intangible assets and 8,246,098.39 48,727,912.06 other long-term assets Cash paid to acquire investment Net cash used in acquiring subsidiaries and other operating units Other cash paid relating to investing activities Sub-total of cash outflows 8,246,098.39 48,727,912.06 Net cash flows from investment activities -3,333,399.19 -38,247,912.06 3.Cash flows from financing activities Cash received from absorbing investment Including: Cash received from increase in minority interest Proceeds from borrowings 470,000,000.00 550,000,000.00 Other proceeds relating to financing activities 491,863,671.22 338,844,256.94 Sub-total of cash inflows 961,863,671.22 888,844,256.94 Repayment of borrowings 482,900,000.00 437,000,000.00 12 Distribution of dividends or profits & interest expenses 24,658,617.05 24,840,575.20 Including: dividends or profit paid to minority interest Cash paid for other financing activities 448,248,452.22 300,000,000.00 Sub-total of cash outflows 955,807,069.27 761,840,575.20 Net cash flows from financing activities 6,056,601.95 127,003,681.74 4. Effects of foreign exchange rate changes on cash -1,256,122.04 1,855,133.50 5.Net increases in cash and cash equivalents -22,688,073.16 103,675,832.57 Add: cash and cash equivalent, at the beginning of year 118,675,591.71 70,822,241.27 6.Cash and cash equivalent at the end of the year 95,987,518.55 174,498,073.84 4.5 Audited report Audit opinions: not audited. 13