Shenzhen China Bicycle Company (Holdings) Limited First Quarterly Report 2021 April 2021 1 Section I. Important Notes Board of Directors and the Supervisory Committee of Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint. All Directors are attended the Board Meeting for Quarterly Report deliberation. Li Hai, person in charge of the Company, Sun Longlong, person in charge of accounting works and Zhong Xiaojin, person in charge of accounting organ (accounting officer) hereby confirm that the Financial Report of this Quarterly Report is authentic, accurate and complete. 2 Section II. Basic Information of the Company I. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data □ Yes √No Changes of this period over Current Period Same period of last year same period of last year Operating income (RMB) 23,163,329.56 7,434,449.73 211.57% Net profit attributable to shareholders of -211,535.36 -591,902.33 64.26% the listed company (RMB) Net profit attributable to shareholders of the listed company after deducting -211,535.36 -692,274.89 69.44% non-recurring gains and losses (RMB) Net cash flow arising from operating 1,399,162.83 459,865.86 204.25% activities (RMB) Basic earnings per share (RMB/Share) -0.0004 -0.0011 63.64% Diluted earnings per share (RMB/Share) -0.0004 -0.0011 63.64% Weighted average ROE -1.96% -8.67% 6.71% Changes of this period-end At the end of the reporting At the end of last year over same period-end of last period year Total assets (RMB) 86,197,389.31 91,742,769.99 -6.04% Net assets attributable to shareholder of 10,693,695.62 10,905,230.98 -1.94% listed company (RMB) Items of non-recurring gains and losses □ Applicable √ Not applicable There were no non-recurring profit and loss items during the reporting period. II. Total number of shareholders at the end of this report period and top ten shareholders 1. Total number of common shareholders and preference shareholders with voting rights recovered and top ten common shareholders In share Total number of common 38,871 Total preference shareholders with 0 3 shareholders at the end of report voting rights recovered at end of period reporting period (if applicable) Top ten shareholders Amount of Number of share pledged/frozen Shareholder’s Nature of Proportion of Amount of shares restricted shares name shareholder shares held held State of share Amount held Shenzhen Guosheng Energy Domestic Investment non-state-owned 11.52% 63,508,747 0 - - Development legal person Co., Ltd. UOB Koy Hian Foreign legal (Hong Kong) 2.89% 15,907,850 0 - - person Co., Ltd. Guosen Securities (Hong Kong) Foreign legal 2.52% 13,909,425 0 - - brokerage Co., person Ltd. Shenwan Hongyuan Foreign legal 1.50% 8,283,272 0 - - Securities (Hong person Kong) Co., Ltd. Lhasa Xingqing Domestic Network non-state-owned 0.83% 4,600,255 0 - - Technology Co., legal person Ltd. Domestic nature Wu Xiaoping 0.74% 4,070,300 0 - - person Domestic nature Li Huili 0.71% 3,891,124 0 - - person LI SHERYN Foreign natural 0.63% 3,480,187 0 - - ZHAN MING person Domestic nature Ge Zhiqiong 0.62% 3,395,752 0 - - person Domestic nature Xu Hongbo 0.58% 3,187,519 0 - - person Top ten shareholders with unrestricted shares held Type of shares Shareholder’s name Amount of unrestricted shares held Type Amount 4 Shenzhen Guosheng Energy RMB common 63,508,747 63,508,747 Investment Development Co., Ltd. shares Domestically UOB Koy Hian (Hong Kong) Co., 15,907,850 listed foreign 15,907,850 Ltd. shares Domestically Guosen Securities (Hong Kong) 13,909,425 listed foreign 13,909,425 brokerage Co., Ltd. shares Domestically Shenwan Hongyuan Securities 8,283,272 listed foreign 8,283,272 (Hong Kong) Co., Ltd. shares Lhasa Xingqing Network RMB common 4,600,255 4,600,255 Technology Co., Ltd. shares RMB common Wu Xiaoping 4,070,300 4,070,300 shares Domestically Li Huili 3,891,124 listed foreign 3,891,124 shares Domestically LI SHERYN ZHAN MING 3,480,187 listed foreign 3,480,187 shares RMB common 691,300 shares Ge Zhiqiong 3,395,752 Domestically listed foreign 2,704,452 shares Domestically Xu Hongbo 3,187,519 listed foreign 3,187,519 shares Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of Explanation on associated Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company relationship among the aforesaid has no idea of whether other circulated shareholders belong to concerted action persons ruled shareholders in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. Explanation on top ten common shareholders involving margin N/A business (if applicable) Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period 5 □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period. 2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred stock held □ Applicable √ Not applicable 6 Section III. Significant Event I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons √ Applicable □ Not applicable Ending or the Opening or last Increase/decrease Item Reasons of changes period period y-o-y Accounts receivable 47,310,280.32 55,031,424.70 -14.03% Received payment for goods from client in the Period Advance payment 1,982,489.68 816,541.52 142.79% The account paid in advance from subsidiary increased Accounts payable 2,617,855.74 9,606,144.94 -72.75% Payment for goods to suppliers in the Period Operating income 23,163,329.56 7,434,449.73 211.57% Revenue from Jewelry & gold business increased Operating cost 20,752,454.71 7,138,011.11 190.73% Costs from Jewelry & gold business increased Management costs 1,328,263.03 566,297.41 134.55% Revenue growth was mainly led to cost increases R&D expenses 856,296.32 370,866.09 130.89% R&D expenses from subsidiary Xinsen Company increased Net cash flow from operating 1,399,162.83 459,865.86 204.25% Growth of the guarantee received activities Net cash flow from financing 0.00 3,250,000.00 -100.00% The capital increment of subsidiary activities last period II. Analysis and explanation of significant events and their influence and solutions √Applicable □Not applicable 1. Planning of the Non-public Offering shares On December 30, 2020, the company held the third extraordinary general meeting of shareholders in 2020, and reviewed and approved the new plan for non-public issuance of A shares, intending to raise funds from Wansheng Industrial Company through non-public issuance of shares not exceeding 293.6 million yuan, which would be used to supplement working capital after deducting issuance costs, this issuance would lead to changes in the company's right of control. On 12 March 2021, the Company received an Application Acceptance from CSRC (Acceptance No.:210576) issued by China Securities Regulatory Commission(hereinafter referred to as CSRC). The CSRC reviewed the application materials submitted by the Company for the administrative license of “Approval of Non-public Offering of Shares by Listed Company (Main Board of A-share and Small & Medium-sized Board, B-share)” in accordance with the laws, and considered that all the application materials were completed and in compliance with the statutory form, decided to accept the application for the administrative license. The “Notice on First Feedback for Administrative Licensing of CSRC” (No.: 210576) was received by the Company dated 23 March 2021 issued from CSRC. Currently, the Company 7 and intermediaries have completed the response work on 21 April 2021, and follow-up works are in progress. The non-public offering of shares is subject to the approval by CSRC and there is uncertainty as to whether it will be approved and when it will finally be approved. The Company will perform the obligation of information disclosure in a timely manner in strictly accordance with the provisions and requirement of relevant laws and regulations according to the review progress of the CSRC on the application. Majority of the investors are urged to invest rationally and pay attention to the investment risks. 2. Application for and recognition as the national high-tech enterprise On the basis of the works from 2017 to 2019, the Company completed the preparations for applying for national high-tech enterprises in 2020 and submits the application materials officially. In January 2021, the Company received the “High-tech Enterprise Certificate” (Certificate No.: GR202044200651, Date of issue 2020 December 11, valid for three years) jointly issued by Shenzhen Science & Technology Innovation Committee, Shenzhen Municipal Finance Bureau and Shenzhen Tax Service, State Taxation Administration. In accordance with the Law of the People’s Republic of China on Enterprise Income Tax and relevant regulations of the national preferential tax policy for the high-tech enterprises, the Company enjoys the relevant preferential tax policies for high-tech enterprises for three consecutive years (2020-2022) after passing the high-tech enterprise certification, that is pay corporate income tax at a rate of 15% (tax rate is reduced from 25% to 15%). Query index of temporary Notice on Overview Date of disclosure website Juchao website: Acceptance of Non-public Offering of March 13, 2021 (http://www.cninfo.com.cn) Notice No.: Shares by CSRC 2021005 Juchao website: Received the “Notice on First Feedback for March 25, 2021 (http://www.cninfo.com.cn) Notice No.: Administrative Licensing of CSRC” 2021007 Juchao website: Reply on the “Notice on First Feedback for April 21, 2021 (http://www.cninfo.com.cn) Notice No.: Administrative Licensing of CSRC” 2021011 Juchao website: Acquisition of the High-tech Enterprise January 30, 2021 (http://www.cninfo.com.cn) Notice No.: Certification by the Company 2021002 Progress of shares buy-back □Applicable √Not applicable Implementation progress of the reduction of repurchases shares by centralized bidding □Applicable √Not applicable III. Commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies □ Applicable √ Not applicable The Company has no commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies. 8 IV. Financial asset investment 1. Securities investment □ Applicable √ Not applicable No security investment in the Period. 2. Derivative investment □ Applicable √ Not applicable No derivative investment in the Period. V. Progress of investment projects with raised funds □ Applicable √ Not applicable VI. Prediction of business performance from January – June 2021 Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason □ Applicable √ Not applicable VII. Major contracts for daily operations □ Applicable √ Not applicable VIII. Trust financing □ Applicable √ Not applicable No trust financing in the Period. IX. Guarantee outside against the regulation □Applicable √Not applicable The Company had no guarantee outside against the regulation in the period. X. Non-operational fund occupation from controlling shareholders and its related party □ Applicable √ Not applicable The Company had no non-operational fund occupation form controlling shareholders and its related party in the period. 9 XI. Registration form for receiving research, communication and interview in the report period √ Applicable □ Not applicable Main content Reception Basic situation index of Time Way Reception type Object and information location investigation provided Consulting Telephone Individual company January 20, 2021 The Company Individual N/A communication investor restructuring progress Consulting company’s February 24, Telephone Individual The Company Individual non-public N/A 2021 communication investor issuance of shares Advisory Telephone Individual company risk March 22, 2021 The Company Individual N/A communication investor delisting warnings 10 Section IV. Financial Statement I. Financial statement 1. Consolidate balance sheet Prepared by Shenzhen China Bicycle Company (Holdings) Limited March 31, 2021 In RMB Item March 31, 2021 March 31, 2020 Current assets: Monetary fund 21,281,182.89 19,887,978.05 Settlement provisions Capital lent Trading financial assets Derivative financial assets Note receivable Account receivable 47,310,280.32 55,031,424.70 Receivable financing Accounts paid in advance 1,982,489.68 816,541.52 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other account receivable 579,573.59 576,770.36 Including: Interest receivable Dividend receivable Buying back the sale of financial assets Inventories 6,416,162.78 7,729,325.94 Contractual assets Assets held for sale Non-current asset due within one year Other current assets 3,430,844.40 2,715,425.31 Total current assets 81,000,533.66 86,757,465.88 11 Non-current assets: Loans and payments on behalf Debt investment Other debt investment Long-term account receivable Long-term equity investment Investment in other equity instrument Other non-current financial assets Investment real estate Fixed assets 3,703,684.90 3,792,133.36 Construction in progress Productive biological asset Oil and gas asset Right-of-use assets Intangible assets Expense on Research and Development Goodwill Long-term expenses to be apportioned Deferred income tax asset 793,170.75 793,170.75 Other non-current asset 700,000.00 400,000.00 Total non-current asset 5,196,855.65 4,985,304.11 Total assets 86,197,389.31 91,742,769.99 Current liabilities: Short-term loans Loan from central bank Capital borrowed Trading financial liability Derivative financial liability Note payable Account payable 2,617,855.74 9,606,144.94 Accounts received in advance Contractual liability 14,531,723.13 15,254,713.38 12 Selling financial asset of repurchase Absorbing deposit and interbank deposit Security trading of agency Security sales of agency Wage payable 848,056.19 1,459,244.07 Taxes payable 1,133,138.54 722,321.02 Other account payable 40,546,566.80 37,882,805.52 Including: Interest payable Dividend payable Commission charge and commission payable Reinsurance payable Liability held for sale Non-current liabilities due within one year Other current liabilities 1,089,243.63 1,175,251.38 Total current liabilities 60,766,584.03 66,100,480.31 Non-current liabilities: Insurance contract reserve Long-term loans Bonds payable Including: Preferred stock Perpetual capital securities Lease liability Long-term account payable Long-term wages payable Accrual liability Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 60,766,584.03 66,100,480.31 13 Owner’s equity: Share capital 551,347,947.00 551,347,947.00 Other equity instrument Including: Preferred stock Perpetual capital securities Capital public reserve 627,834,297.85 627,834,297.85 Less: Inventory shares Other comprehensive income Reasonable reserve Surplus public reserve 32,673,227.01 32,673,227.01 Provision of general risk Retained profit -1,201,161,776.24 -1,200,950,240.88 Total owner’ s equity attributable to 10,693,695.62 10,905,230.98 parent company Minority interests 14,737,109.66 14,737,058.70 Total owner’ s equity 25,430,805.28 25,642,289.68 Total liabilities and owner’ s equity 86,197,389.31 91,742,769.99 Legal Representative: Li Hai Person in charge of accounting works: Sun Longlong Person in charge of accounting institute: Zhong Xiaojin 2. Balance Sheet of Parent Company In RMB Item March 31, 2021 March 31, 2020 Current assets: Monetary funds 13,006,940.69 10,097,024.59 Trading financial assets Derivative financial assets Note receivable Account receivable 22,883,910.96 24,274,935.96 Receivable financing Accounts paid in advance 2,000.00 800,000.00 14 Other account receivable 165,263.05 115,263.05 Including: Interest receivable Dividend receivable Inventories 559,190.54 550,421.78 Contractual assets Assets held for sale Non-current assets maturing within one year Other current assets 2,723,617.95 2,652,771.13 Total current assets 39,340,923.19 38,490,416.51 Non-current assets: Debt investment Other debt investment Long-term receivables Long-term equity investments 19,960,379.73 19,960,379.73 Investment in other equity instrument Other non-current financial assets Investment real estate Fixed assets 3,467,111.22 3,530,501.40 Construction in progress Productive biological assets Oil and natural gas assets Right-of-use assets Intangible assets Research and development costs Goodwill Long-term deferred expenses Deferred income tax assets Other non-current assets 700,000.00 400,000.00 Total non-current assets 24,127,490.95 23,890,881.13 Total assets 63,468,414.14 62,381,297.64 Current liabilities Short-term borrowings 15 Trading financial liability Derivative financial liability Notes payable Account payable 104,793.58 748,604.24 Accounts received in advance Contractual liability 14,445,423.04 14,685,423.04 Wage payable 609,824.68 1,146,371.58 Taxes payable 12,694.69 24,906.50 Other accounts payable 42,142,861.82 39,409,824.37 Including: Interest payable Dividend payable Liability held for sale Non-current liabilities due within one year Other current liabilities 1,089,243.63 1,101,243.63 Total current liabilities 58,404,841.44 57,116,373.36 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Lease liability Long-term account payable Long term employee compensation payable Accrued liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 58,404,841.44 57,116,373.36 Owners’ equity: Share capital 551,347,947.00 551,347,947.00 Other equity instrument 16 Including: preferred stock Perpetual capital securities Capital public reserve 627,834,297.85 627,834,297.85 Less: Inventory shares Other comprehensive income Special reserve Surplus reserve 32,673,227.01 32,673,227.01 Retained profit -1,206,791,899.16 -1,206,590,547.58 Total owner’s equity 5,063,572.70 5,264,924.28 Total liabilities and owner’s equity 63,468,414.14 62,381,297.64 3. Consolidated Profit Statement In RMB Item Current period Last period I. Total operating income 23,163,329.56 7,434,449.73 Including: Operating income 23,163,329.56 7,434,449.73 Interest income Insurance gained Commission charge and commission income II. Total operating cost 23,368,934.41 8,330,675.93 Including: Operating cost 20,752,454.71 7,138,011.11 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Tax and extras 30,648.14 4,613.22 17 Sales expense 425,618.74 256,390.20 Administrative expense 1,328,263.03 566,297.41 R&D expense 856,296.32 370,866.09 Financial expense -24,346.53 -5,502.10 Including: Interest expenses Interest income 35,896.85 12,272.75 Add: other income 2,516.00 7,598.72 Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) Exchange income (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Income from change of fair value (Loss is listed with “-”) Loss of credit impairment 468.00 -7,301.89 (Loss is listed with “-”) Losses of devaluation of asset (Loss is listed with “-”) Income from assets disposal (Loss is listed with “-”) III. Operating profit (Loss is listed with -202,620.85 -895,929.37 “-”) Add: Non-operating income 165,570.00 Less: Non-operating expense 2,676.80 IV. Total profit (Loss is listed with “-”) -202,620.85 -733,036.17 Less: Income tax expense 8,863.55 V. Net profit (Net loss is listed with “-”) -211,484.40 -733,036.17 (i) Classify by business continuity 1.continuous operating net profit -211,484.40 -733,036.17 (net loss listed with ‘-”) 18 2.termination of net profit (net loss listed with ‘-”) (ii) Classify by ownership 1.Net profit attributable to owner’s -211,535.36 -591,902.33 of parent company 2.Minority shareholders’ gains and 50.96 -141,133.84 losses VI. Net after-tax of other comprehensive income Net after-tax of other comprehensive income attributable to owners of parent company (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.Amount of financial assets re-classify to other comprehensive income 4.Credit impairment provision for other debt investment 5.Cash flow hedging reserve 19 6.Translation differences arising on translation of foreign currency financial statements 7.Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income -211,484.40 -733,036.17 Total comprehensive income -211,535.36 -591,902.33 attributable to owners of parent Company Total comprehensive income 50.96 -141,133.84 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share -0.0004 -0.0011 (ii) Diluted earnings per share -0.0004 -0.0011 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party Legal Representative: Li Hai Person in charge of accounting works: Sun Longlong Person in charge of accounting institute: Zhong Xiaojin 4. Profit Statement of Parent Company In RMB Item Current period Last period I. Operating income 4,550,349.53 2,946,875.03 Less: Operating cost 3,639,149.53 2,554,922.61 Taxes and surcharge 3,144.60 1,832.20 Sales expenses 154,250.20 105,145.80 Administration expenses 637,813.27 306,431.73 R&D expenses 346,931.19 370,866.09 Financial expenses -27,085.77 -282.48 Including: interest expenses Interest income 32,653.77 2,982.02 20 Add: other income 2,501.91 6,088.07 Investment income (Loss is listed with “-”) Including: Investment income on affiliated Company and joint venture The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Changing income of fair value (Loss is listed with “-”) Loss of credit impairment (Loss is listed with “-”) Losses of devaluation of asset (Loss is listed with “-”) Income on disposal of assets (Loss is listed with “-”) II. Operating profit (Loss is listed with -201,351.58 -385,952.85 “-”) Add: Non-operating income 65,570.00 Less: Non-operating expense III. Total Profit (Loss is listed with “-”) -201,351.58 -320,382.85 Less: Income tax IV. Net profit (Net loss is listed with -201,351.58 -320,382.85 “-”) (i)continuous operating net profit (net -201,351.58 -320,382.85 loss listed with ‘-”) (ii) termination of net profit (net loss listed with ‘-”) V. Net after-tax of other comprehensive income (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 21 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.Amount of financial assets re-classify to other comprehensive income 4.Credit impairment provision for other debt investment 5.Cash flow hedging reserve 6.Translation differences arising on translation of foreign currency financial statements 7.Other VI. Total comprehensive income -201,351.58 -320,382.85 VII. Earnings per share: (i) Basic earnings per share (ii) Diluted earnings per share 5. Consolidated Cash Flow Statement In RMB Item Current period Last period I. Cash flows arising from operating activities: 22 Cash received from selling commodities and providing labor 31,191,247.05 5,190,850.17 services Net increase of customer deposit and interbank deposit Net increase of loan from central bank Net increase of capital borrowed from other financial institution Cash received from original insurance contract fee Net cash received from reinsurance business Net increase of insured savings and investment Cash received from interest, commission charge and commission Net increase of capital borrowed Net increase of returned business capital Net cash received by agents in sale and purchase of securities Write-back of tax received 2,652.02 6,453.35 Other cash received concerning 7,188,346.22 5,623,782.06 operating activities Subtotal of cash inflow arising from 38,382,245.29 10,821,085.58 operating activities Cash paid for purchasing commodities and receiving labor 28,648,220.66 6,267,803.24 service Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation Net increase of capital lent Cash paid for interest, commission 23 charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 2,644,266.76 1,456,506.88 Taxes paid 335,366.77 94,267.49 Other cash paid concerning 5,355,228.27 2,542,642.11 operating activities Subtotal of cash outflow arising from 36,983,082.46 10,361,219.72 operating activities Net cash flows arising from operating 1,399,162.83 459,865.86 activities II. Cash flows arising from investing activities: Cash received from recovering investment Cash received from investment income Net cash received from disposal of fixed, intangible and other long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities Cash paid for purchasing fixed, 5,957.99 intangible and other long-term assets Cash paid for investment Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities Subtotal of cash outflow from investing 5,957.99 activities Net cash flows arising from investing -5,957.99 activities 24 III. Cash flows arising from financing activities Cash received from absorbing 3,250,000.00 investment Including: Cash received from absorbing minority shareholders’ 3,250,000.00 investment by subsidiaries Cash received from loans Other cash received concerning financing activities Subtotal of cash inflow from financing 3,250,000.00 activities Cash paid for settling debts Cash paid for dividend and profit distributing or interest paying Including: Dividend and profit of minority shareholder paid by subsidiaries Other cash paid concerning financing activities Subtotal of cash outflow from financing activities Net cash flows arising from financing 3,250,000.00 activities IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash 1,393,204.84 3,709,865.86 equivalents Add: Balance of cash and cash 19,887,978.05 6,074,367.91 equivalents at the period -begin VI. Balance of cash and cash 21,281,182.89 9,784,233.77 equivalents at the period -end 6. Cash Flow Statement of Parent Company In RMB Item Current period Last period I. Cash flows arising from operating 25 activities: Cash received from selling commodities and providing labor 4,970,937.00 1,276,508.00 services Write-back of tax received 2,652.02 6,453.35 Other cash received concerning 7,203,475.76 6,183,396.37 operating activities Subtotal of cash inflow arising from 12,177,064.78 7,466,357.72 operating activities Cash paid for purchasing commodities and receiving labor 2,634,458.80 382,049.53 service Cash paid to/for staff and workers 1,894,992.00 1,191,658.28 Taxes paid 58,250.95 74,306.27 Other cash paid concerning 4,673,488.94 2,153,942.98 operating activities Subtotal of cash outflow arising from 9,261,190.69 3,801,957.06 operating activities Net cash flows arising from operating 2,915,874.09 3,664,400.66 activities II. Cash flows arising from investing activities: Cash received from recovering investment Cash received from investment income Net cash received from disposal of fixed, intangible and other long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities Cash paid for purchasing fixed, 5,957.99 intangible and other long-term assets Cash paid for investment 3,250,000.00 26 Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities Subtotal of cash outflow from investing 5,957.99 3,250,000.00 activities Net cash flows arising from investing -5,957.99 -3,250,000.00 activities III. Cash flows arising from financing activities Cash received from absorbing investment Cash received from loans Other cash received concerning financing activities Subtotal of cash inflow from financing activities Cash paid for settling debts Cash paid for dividend and profit distributing or interest paying Other cash paid concerning financing activities Subtotal of cash outflow from financing activities Net cash flows arising from financing activities IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash 2,909,916.10 414,400.66 equivalents Add: Balance of cash and cash 10,097,024.59 1,959,804.92 equivalents at the period -begin VI. Balance of cash and cash 13,006,940.69 2,374,205.58 equivalents at the period -end 27 II. Explanation on financial statement adjustment 1. Financial statement adjustment at the beginning of the first year when implementation of new leasing rules from 2021 □Applicable √Not applicable 2. Retrospective adjustment of the comparative data for initial new leasing rules from 2021 □Applicable √Not applicable III. Audit report Whether the 1st quarterly report has been audited or not □Yes √ No 1Q report of the Company is unaudited. Board of Directors of Shenzhen China Bicycle Company (Holdings) Limited 29 April 2021 28