FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text FIYTA HOLDINGS LTD. 2019 First Quarterly Report April, 2019 1 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Section 1 Important Notice The Board of Directors, the Supervisory Committee, directors, supervisors and senior executives hereby individually and collectively accept responsibility for the correctness, accuracy, and completeness of the contents of this report and confirm that there are neither material omissions nor errors which would render any statement misleading. All the directors attended the board meeting for reviewing the Quarterly Report. Huang Yongfeng, the Company leader, Chen Zhuo, the chief financial officer, and Tian Hui, the manager of the accounting department (treasurer) hereby confirm the authenticity and completeness of the financial report enclosed in this quarterly report. 2 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Section 2 Company Profile I. Summary of Accounting/Financial Data Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years No Year-on-year The same period of the Reporting period increase/decrease in the previous year reporting period Revenue in CNY 893,389,751.73 851,815,980.69 4.88% Net profit attributable to the Company’s 64,359,084.46 59,518,000.75 8.13% shareholders, in CNY Net profit attributable to the Company’s shareholders less the non-recurring items, in 61,517,359.28 54,825,312.90 12.21% CNY Net cash flows arising from operating activities, 10,730,388.47 67,632,201.86 -84.13% in CNY Basic earning per share (CNY/share) 0.1467 0.1357 8.11% Diluted earning per share (CNY/share) 0.1453 0.1357 7.07% Return on equity, weighted average 2.47% 2.38% 0.09% Increase/decrease at the end End of the reporting period End of the previous year of the year over the end of the previous year Total assets (in CNY) 3,579,986,668.73 3,599,691,650.26 -0.55% Net profit attributable to the Company’s 2,632,044,015.17 2,570,134,782.90 2.41% shareholders, in CNY Non-recurring gain/loss items and the amount involved In CNY Amount from the year beginning Items Note to the end of the reporting period Gain/loss from disposal of non-current assets, including the part offset -50,642.04 from the provision for impairment of assets The government subsidies included in the profits and losses of the current period ( (excluding government grants which are closely related 3,807,765.25 to the Company’s business and conform with the national standard amount or quantity) Other non-operating income and expenses other than the aforesaid -192,401.94 items Less: Amount affected by the income tax 722,996.09 Total 2,841,725.18 -- 3 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text For the Company’s 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. Inapplicable II. Statement of total shareholders and shares held by the top 10 shareholders by the end of the reporting period 1. Quantity of the shares held by the common shareholders and preferred shareholders whose voting rights are restored and statement of shareholding by the top 10 shareholders In shares Total preference shareholders with the Total common shareholders at the end 31,835 voting power recovered at the end of the 0 of the reporting period reporting period (if any) Shareholding by top 10 shareholders Number of the Pledging or freezing Names of the Nature of the Shareholding Shareholding restricted shares Status of the Shareholders shareholder proportion quantity Quantity held shares AVIC International State corporate 36.79% 162,977,327 0 Holding Limited Domestic natural Wan Zhongbo 3.07% 13,599,327 0 persons Domestic natural #Yang Zugui 2.96% 13,108,917 0 persons Domestic natural Mo Jiadong 2.28% 10,084,635 0 persons National Social Security Fund 114 State corporate 2.18% 9,657,744 0 Portfolio Xizang Investment State corporate 1.12% 4,976,551 0 Co., Ltd. MANULIFE TEDA Fund- Minsheng Bank-MANULIFE TEDA Value Domestic Growth Oriented non-state-owned 1.10% 4,893,559 0 Additional Issue corporate No. 351 Assets Management Program Shenzhen Heli Domestic Fengyuan non-state-owned 0.61% 2,704,000 0 Commerce & Trade corporate Co., Ltd. BANK OF COMMUNICATION S CO.,LTD - Domestic CHANGXIN non-state-owned 0.57% 2,532,201 0 QUANTIFIED corporate PIONEER EQUITY FUND BANK OF Domestic COMMUNICATION non-state-owned 0.27% 1,201,200 0 S CO.,LTD - corporate 4 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text CHANG XIN QUANTITATIVE TYPE SMALL DISH STOCK SECURITIES INVESTMENT FUND Shares held by top 10 shareholders of unrestricted shares Share type Name of the Shareholder Quantity of unrestricted shares held a Share type Quantity CNY ordinary AVIC International Holding Limited 162,977,327 162,977,327 shares CNY ordinary Wan Zhongbo 13,599,327 13,599,327 shares CNY ordinary #Yang Zugui 13,108,917 13,108,917 shares CNY ordinary Mo Jiadong 10,084,635 10,084,635 shares National Social Security Fund 114 CNY ordinary 9,657,744 9,657,744 Portfolio shares CNY ordinary Xizang Investment Co., Ltd. 4,976,551 4,976,551 shares MANULIFE TEDA Fund- Minsheng CNY ordinary Bank-MANULIFE TEDA Value Growth 4,893,559 shares 4,893,559 Oriented Additional Issue No. 351 Assets Management Program Shenzhen Heli Fengyuan Commerce & CNY ordinary 2,704,000 2,704,000 Trade Co., Ltd. shares BANK OF COMMUNICATIONS CO., CNY ordinary LTD - CHANGXIN QUANTIFIED 2,532,201 2,532,201 PIONEER EQUITY FUND shares BANK OF COMMUNICATIONS CO., CNY ordinary LTD - CHANG XIN QUANTITATIVE 1,201,200 shares 1,201,200 TYPE SMALL DISH STOCK SECURITIES INVESTMENT FUND Explanation on the associated relationship or consistent action of the Inapplicable above shareholders Note to the top 10 shareholders of ordinary shares involved in margin Inapplicable financing & securities lending (if any) Did the top ten common shareholders or top ten shareholders of unrestricted common shares conduct contractual repurchase during the reporting period? No 2. Total preferred shareholders and the shareholding by the top 10 preferred shareholders Inapplicable 5 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Section 3 Significant Events Change in the major financial data and financial indicators during the reporting period and the causes The amount at the end of The amount at the year Items Variation proportion (%) Cause of the movement the reporting period beginning It was mainly due to the increase of the advance Advance payments 20,318,636.22 13,666,816.33 48.67% payment during the reporting period over the year beginning It was mainly due to the decrease of the payments for the refurbishment and Other non-current assets 5,458,879.75 8,949,160.42 -39.00% equipment to be settled at the end of the reporting period over the year beginning It was mainly due to the partial payment for goods and the balance payment Accounts payable 191,577,235.91 259,913,612.34 -26.29% for the works of the Watch Industrial Base of Guangming New Zone during the reporting period It was mainly due to the increase of the advances Advance Receipts 27,695,233.88 16,459,445.00 68.26% on sales during the reporting period over the year beginning It was mainly due to that the year-end bonus of the Payroll payable to the year 2018 payable to the 34,559,516.76 69,779,037.83 -50.47% employees employees was paid during the reporting period. It was mainly due to the decrease of the VAT Taxes payable 36,099,094.50 55,923,171.92 -35.45% payable during the reporting period over the year beginning Other comprehensive It was mainly due to the -9,009,290.73 -5,442,139.78 65.55% income influence of the converted 6 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text difference in foreign currency statements during the reporting period It was mainly due to the price of goods was paid during the reporting period Net cash flows arising 10,730,388.47 67,632,201.86 -84.13% and the amount of the from operating activities accounts payable at the end of the reporting period decreased. It was mainly due to the balance payment for the works of the Watch Net cash flows arising -50,729,730.85 -20,897,671.30 142.75% Industrial Base of from investment activities Guangming New Zone partially paid during the reporting period It was mainly due to the decrease of the bank Net cash flows arising 22,731,443.97 63,445,267.85 -64.17% loans over the same from financing activities period of the previous year during the reporting period It was mainly due to the payment for goods and the balance payment for Net increase of cash and the works of the Watch -17,400,331.36 109,826,844.65 -115.84% cash equivalents Industrial Base of Guangming New Zone partially paid during the reporting period II. Progress of significant events, their effects. and analysis on the solutions 1. Grant of the restricted A-shares was completed The 3rd session of the Ninth Board of Directors and 2019 1st Extraordinary General Meeting held respectively on November 12, 2018 and January 11, 2019 decided to start 2018 A-Share Restricted Stock Incentive Program (Phase I), which was later on reviewed and approved at the 5th session of the Ninth Board of Directors held on January 11, 2019, and the Company eventually granted 4.224 million restricted A-shares to 128 persons eligible for the incentive. The date of granting this part of restricted shares was January 11, 2019 (The lock-up period of these restricted shares was two years commencing from the date of granting) . By January 30, 2019, the work of granting the shares and registration for listing was completed. After the share granting, the Company's total capital stock increased to 442,968,881 shares. For the detail, refer to the Announcement on the Completion of Granting the Restricted A-Shares according to the Incentive Plan (Phase I) (2019-009) disclosed in Securities Times, Hong Kong Commercial Daily and www.cninfo.com. 7 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text 2. Matters concerning Repurchase of the Company’s Partial Domestically Listed Foreign Shares (B Shares) The 7th session of the Ninth Board of Directors held on April 4, 2019, reviewed and approved the Proposal for Repurchase o the Company’s Partial Domestically Listed Foreign Shares (B Shares). For the detail, refer to the Announcement on the Resolutions of the 7th Session of the Ninth Board of Directors 2019-015 and the Proposal for Repurchase o the Company’s Partial Domestically Listed Foreign Shares (B Shares) 2019-017. The said repurchase proposal is still necessary to be submitted to the General Meeting for discussion. In accordance with the relevant provisions of the Administration of Repurchase of Public Shares by Listed Companies Procedures (Trial Implementation), the Supplementary Provisions for Share Repurchase via Centralized Bidding Transactions by Listed Companies, the Rules of Shenzhen Stock Exchange for Implementation of Repurchase of Public Shares by Listed Companies, etc., the Company has disclosed the names of, the quantity of shares held by and the shareholding information of the top 10 shareholders and top 10 shareholders of non-restricted shares one trading day before the publication of the resolution on share repurchase (namely April 4, 2019) and registered as at the date of registration of the equity of the general meeting (namely April 12, 2019). For the detail, refer to the Announcement on the Information of Shareholding by the Top Ten Shareholders before Share Repurchase 2019-020 and the Announcement on the Information of Shareholding by the Top Ten Shareholders before Share Repurchase 2019-022. Inquiry index of the provisional reports General on Significant Events Date of disclosure disclosed in the website. The Announcement on the Completion of Granting the Restricted A-Shares according to January 29, 2019 http://www.cninfo.com.cn/ the Incentive Plan (Phase I) (2019-009) Announcement on the Resolution of the 7th Session of the Ninth Board of Directors, April 08, 2019 http://www.cninfo.com.cn/ 2019-015 Proposal for the Repurchase of the Company’s Partial Domestically Listed Foreign Shares (B April 08, 2019 http://www.cninfo.com.cn/ Shares) 2019-017 Announcement on the Information of the Shareholding by the Top Ten Shareholders April 12, 2019 http://www.cninfo.com.cn/ before the Repurchase of the Shares 2019-020 Announcement on the Information of the Shareholding by the Top Ten Shareholders April 20, 2019 http://www.cninfo.com.cn/ before the Repurchase of the Shares 2019-022 Progress of implementation of the stock repurchase Inapplicable Progress of implementation of the reduction of the holding size of the shares repurchased by centralized bidding Inapplicable 8 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text III. Commitments unfinished in implementation by the Company's actual controller, shareholders, related parties, acquirer and the Company, etc. in the reporting period Inapplicable IV. Prediction of the Operation Performances from January to June, 2019 Inapplicable V. Portfolio investment Inapplicable VI. Investment in derivatives Inapplicable VII. Registration Form of Activities of Reception for Investigation and Survey, Communications, Interviews, etc. in the Reporting Period Inapplicable VIII. Outward guarantee against regulations Inapplicable IX. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties Inapplicable Section 4. Financial Statements I. Financial Statements 1. Consolidated Balance Sheet Prepared by FIYTA HOLDINGS LTD. March 31, 2019 In CNY Items March 31, 2019 December 31, 2018 Current assets: Monetary capital 147,427,728.61 164,828,059.97 Settlement reserve Inter-bank lending Transactional financial assets Financial assets which is measured based on the fair value and whose movement is counted to the current gain/loss 9 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Derivative financial assets Notes receivable and accounts receivable 430,694,540.15 377,597,503.46 Where: Notes receivable 8,932,241.48 7,051,846.85 Accounts receivable 421,762,298.67 370,545,656.61 Advance payments 20,318,636.22 13,666,816.33 Receivable premium Reinsurance accounts receivable Reserve for reinsurance contract receivable Other receivables 43,108,492.98 45,870,582.26 Including: Interest receivable Dividends receivable Redemptory monetary capital for sale Inventories 1,760,074,886.64 1,782,306,301.70 Contract assets Held-for-sale assets Non-current assets due within a year Other current assets 55,816,477.63 73,703,312.24 Total current assets 2,457,440,762.23 2,457,972,575.96 Non-current assets: Loan issuing and advance in cash Equity investment Available-for-sale financial assets 85,000.00 Other equity investment Held-to-due investments Long term accounts receivable Long-term equity investment 44,881,063.15 44,881,063.15 Investment in other equity instruments 85,000.00 Other non-current financial assets Investment real estate 373,893,327.35 377,319,433.03 Fixed assets 418,286,761.85 425,649,562.85 Construction-in-process 12,318,038.44 12,041,126.00 Productive biological asset Oil and gas assets 10 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Use right assets Intangible assets 42,974,917.02 43,545,477.61 Development expenses Goodwill Long-term expenses to be apportioned 135,527,467.48 128,572,545.15 Deferred income tax asset 89,120,451.46 100,675,706.09 Other non-current assets 5,458,879.75 8,949,160.42 Total non-current assets 1,122,545,906.50 1,141,719,074.30 Total assets 3,579,986,668.73 3,599,691,650.26 Current liabilities: Short term borrowings 556,436,738.65 547,118,452.97 Borrowings from central bank Loans from other banks Transactional financial liabilities Financial liabilities measured based on the fair value and whose change was charged to the current gain and loss. Derivative financial liabilities Notes payable and accounts payable 191,577,235.91 259,913,612.34 Advance Receipts 27,695,233.88 16,459,445.00 Funds from selling out and repurchasing financial assets Deposits taking and interbank placement Acting trading securities Income from securities underwriting on commission Payroll payable to the employees 34,559,516.76 69,779,037.83 Taxes payable 36,099,094.50 55,923,171.92 Other payables 93,250,973.34 71,819,930.30 Including: interest payable 722,318.78 772,351.26 Dividends payable Service charge and commission payable Payable reinsurance Contract liabilities 11 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Held-for-sale liabilities Non-current liabilities due within a year 337,845.00 347,470.00 Other current liabilities Total current liabilities 939,956,638.04 1,021,361,120.36 Non-current liabilities: Reserve for insurance contract Long-term borrowings 4,307,523.75 4,517,110.00 Bonds payable Including: preferred shares Perpetual bond Lease liabilities Long-term accounts payable Long term payroll payable to the employees Predicted liabilities Deferred income 3,672,855.36 3,672,855.36 Deferred income tax liability Other non-current liabilities Total non-current liabilities 7,980,379.11 8,189,965.36 Total liabilities 947,937,017.15 1,029,551,085.72 Owner’s equity: Capital Stock 442,968,881.00 438,744,881.00 Other equity instruments Including: preferred shares Perpetual bond Capital Reserve 1,077,934,543.00 1,062,455,644.22 Less: shares in stock 18,585,600.00 Other comprehensive income -9,009,290.73 -5,442,139.78 Special reserve Surplus Reserve 223,015,793.80 223,015,793.80 Reserve against general risks Retained earnings 915,719,688.10 851,360,603.66 Total owners’ equity attributable to the parent 2,632,044,015.17 2,570,134,782.90 company Minority shareholders’ equity 5,636.41 5,781.64 12 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Total owner’s equity 2,632,049,651.58 2,570,140,564.54 Total liabilities and owners’ equity 3,579,986,668.73 3,599,691,650.26 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 2. Balance Sheet (Parent Company) In CNY Items March 31, 2019 December 31, 2018 Current assets: Monetary capital 119,031,551.42 137,175,466.27 Transactional financial assets Financial assets which is measured based on the fair value and whose movement is counted to the current gain/loss Derivative financial assets Notes receivable and accounts receivable 2,157,099.65 737,636.38 Where: Notes receivable Accounts receivable 2,157,099.65 737,636.38 Advance payments Other receivables 869,982,776.57 870,739,378.37 Including: Interest receivable Dividends receivable Inventories Contract assets Held-for-sale assets Non-current assets due within a year Other current assets 11,509,779.64 10,081,272.94 Total current assets 1,002,681,207.28 1,018,733,753.96 Non-current assets: Equity investment Available-for-sale financial assets 85,000.00 Other equity investment Held-to-due investments Long term accounts receivable Long-term equity investment 1,376,129,654.08 1,376,129,654.08 Investment in other equity instruments 85,000.00 13 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Other non-current financial assets Investment real estate 294,302,649.97 297,042,937.87 Fixed assets 293,892,269.63 297,517,472.81 Construction-in-process 12,318,038.44 12,041,126.00 Productive biological asset Oil and gas assets Use right assets Intangible assets 34,192,362.94 35,337,052.82 Development expenses Goodwill Long-term expenses to be apportioned 9,004,556.36 4,500,638.97 Deferred income tax asset 952,857.33 952,857.33 Other non-current assets 2,507,857.08 4,493,971.35 Total non-current assets 2,023,385,245.83 2,028,100,711.23 Total assets 3,026,066,453.11 3,046,834,465.19 Current liabilities: Short term borrowings 520,000,000.00 505,000,000.00 Transactional financial liabilities Financial liabilities measured based on the fair value and whose change was charged to the current gain and loss. Derivative financial liabilities Notes payable and accounts payable 27,278,565.87 52,324,191.98 Advance Receipts 4,416,026.56 1,636,520.02 Contract liabilities Payroll payable to the employees 6,871,767.07 11,589,634.34 Taxes payable 1,584,951.77 943,919.26 Other payables 44,199,285.94 57,997,397.28 Including: interest payable 671,244.45 685,419.80 Dividends payable Held-for-sale liabilities Non-current liabilities due within a year Other current liabilities Total current liabilities 604,350,597.21 629,491,662.88 Non-current liabilities: 14 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Long-term borrowings Bonds payable Including: preferred shares Perpetual bond Lease liabilities Long-term accounts payable Long term payroll payable to the employees Predicted liabilities Deferred income 3,672,855.36 3,672,855.36 Deferred income tax liability Other non-current liabilities Total non-current liabilities 3,672,855.36 3,672,855.36 Total liabilities 608,023,452.57 633,164,518.24 Owner’s equity: Capital Stock 442,968,881.00 438,744,881.00 Other equity instruments Including: preferred shares Perpetual bond Capital Reserve 1,083,590,084.10 1,068,111,185.32 Less: shares in stock 18,585,600.00 Other comprehensive income Special reserve Surplus Reserve 223,015,793.80 223,015,793.80 Retained earnings 687,053,841.64 683,798,086.83 Total owner’s equity 2,418,043,000.54 2,413,669,946.95 Total liabilities and owners’ equity 3,026,066,453.11 3,046,834,465.19 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 3. Consolidated Profit Statement In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Turnover 893,389,751.73 851,815,980.69 Including: operating income 893,389,751.73 851,815,980.69 15 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Interest income Earned insurance premium Service charge and commission income II. Total operating costs 814,959,559.48 776,711,015.00 Including: Operating costs 532,797,117.99 498,998,726.86 Interest payment Service charge and commission payment Surrender Value Compensation expenses, net Provision of reserve for insurance contract, net Payment of policy dividend Reinsurance expenses Taxes and surcharges 7,967,226.11 8,182,646.44 Sales costs 199,499,630.53 203,295,481.43 Administrative expenses 55,752,416.90 48,438,558.44 R & D expenditures 9,953,936.60 10,545,751.63 Financial expenses 9,085,058.60 9,646,423.37 Where: Interest cost 6,209,488.02 7,036,409.01 Interest income 429,095.38 424,583.81 Loss from impairment of assets -2,396,573.17 Loss from impairment of credit -95,827.25 Plus: Other income 3,807,765.25 3,196,013.80 Investment income (loss is stated with “-“) Including: return on investment in associate and joint venture Exchange income (loss stated with “-“) Net exposure hedge income (loss stated with “-“) Income from change of fair value (loss is stated with “-”) Income from disposal of assets (loss is -50,642.04 -20,793.32 stated with “-“) III. Operating Profit (loss is stated with “-“) 82,187,315.46 78,280,186.17 Plus: Non-operating income 32,398.46 175,332.08 16 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Less: Non-operating expenses 224,800.40 13,679.05 IV. Total profit (total loss is stated with “-”) 81,994,913.52 78,441,839.20 Less: Income tax expense 17,635,829.06 18,923,838.45 V. Net Profit (net loss is stated with “-“) 64,359,084.46 59,518,000.75 (I) Classification based on operation sustainability 1. Net Profit from sustainable operation (net loss 64,359,084.46 59,518,000.75 is stated with “-”) 2. Net Profit from termination of operation (net loss is stated with “-”) (II) Classification according to the ownership 1. Net profit attributable to the parent company’s 64,359,084.46 59,518,000.75 owner 2. Minority shareholders’ gain/loss VI. Net of other comprehensive income after tax -3,567,296.18 -1,945,653.74 Net of other comprehensive income after tax -3,567,150.95 -1,945,418.04 attributable to the parent company’s owner (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method 3. Movement of the fair value of the investment in other equity instruments 4. Movement of the fair value of the Company’s own credit risk 5. Others (II) Other comprehensive income which shall be -3,567,150.95 -1,945,418.04 re-classified into gain and loss 1. Other comprehensive income which can be converted into gain and loss based on the equity method 2. Movement of the fair value of the investment in other debt instruments 3. Gain/loss from change in the fair value of the financial assets available for sale 4. Amount of the reclassified financial 17 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text assets counted to the other comprehensive income 5. Gain/loss from which the held-to-maturity investment is re-classified as available-for-sale financial assets 6. Provision for impairment of the credit of the other debt investment 7. Reserve for cash flow hedge 8. Conversion difference in foreign -3,567,150.95 -1,945,418.04 currency statements 9. Others Net amount of other comprehensive income after -145.23 -235.70 tax attributable to minority shareholders VII. Total comprehensive income 60,791,788.28 57,572,347.01 Total comprehensive income attributable to the 60,791,933.51 57,572,582.71 parent company’s owner Total comprehensive income attributable to -145.23 -235.70 minority shareholders VIII. Earnings per share: (I) Basic earnings per share 0.1467 0.1357 (II) Diluted earnings per share 0.1453 0.1357 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 4. Statement of Profit, Parent Company In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Revenue 32,237,822.48 28,011,891.43 Less: Operating cost 5,353,494.43 4,688,447.89 Taxes and surcharges 1,101,258.73 1,065,040.94 Sales cost Administrative expenses 17,701,057.40 13,861,024.27 R & D expenditures 4,976,563.54 4,785,087.95 Financial expenses 1,785,619.37 1,569,784.34 Where: Interest cost 2,092,544.95 1,685,973.46 Interest income 358,260.51 189,051.76 Loss from impairment of assets 18 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Loss from impairment of credit Plus: Other income 2,126,000.00 598,000.00 Investment income (loss is stated with “-“) Including: return on investment in associate and joint venture Net exposure hedge income (loss stated with “-“) Income from change of fair value (loss is stated with “-”) Income from disposal of assets -2,074.20 -12,400.00 (loss is stated with “-“) II. Operating Profit (loss is stated with “-“) 3,443,754.81 2,628,106.04 Plus: Non-operating income 12,000.00 2,880.00 Less: Non-operating expenses 200,000.00 III. Total profit (total loss is stated with “-“) 3,255,754.81 2,630,986.04 Less: Income tax expense 153,818.42 IV. Net Profit (net loss is stated with “-“) 3,255,754.81 2,477,167.62 (I) Net Profit from sustainable 3,255,754.81 2,477,167.62 operation (net loss is stated with “-”) (II) Net Profit from termination of operation (net loss is stated with “-”) V. Net of other comprehensive income after tax (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method 3. Movement of the fair value of the investment in other equity instruments 4. Movement of the fair value of the Company’s own credit risk 5. Others (II) Other comprehensive income 19 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text which shall be re-classified into gain and loss 1. Other comprehensive income which can be converted into gain and loss based on the equity method 2. Movement of the fair value of the investment in other debt instruments 3. Gain/loss from change in the fair value of the financial assets available for sale 4. Amount of the reclassified financial assets counted to the other comprehensive income 5. Gain/loss from which the held-to-maturity investment is re-classified as available-for-sale financial assets 6. Provision for impairment of the credit of the other debt investment 7. Reserve for cash flow hedge 8. Conversion difference in foreign currency statements 9. Others VI. Total comprehensive income 3,255,754.81 2,477,167.62 VII. Earnings per share: (I) Basic earnings per share 0.0074 0.0056 (II) Diluted earnings per share 0.0073 0.0056 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 5. Consolidated Cash Flow Statement In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Net cash flows arising from operating activities Cash received from sales of goods 975,041,907.75 946,590,536.33 and supply of labor service Net increase of customers’ deposit 20 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text and due from banks Net increase of borrowings from the central bank Net increase of borrowings from other financial institutions Cash received from the premium of the original insurance contract Net cash received from the reinsurance business Net increase of the reserve from policy holders and investment Net increase from disposal of financial assets which is measured based on the fair value and whose movement is counted to the current gain/loss Cash received from interest, service charge and commission Net increase of loan from other banks Net increase of fund from repurchase business Net cash received from securities trading on commission Rebated taxes received 1,702,739.93 115,911.67 Other operation activity related cash 20,886,425.52 13,670,199.06 receipts Subtotal of cash flow in from operating 997,631,073.20 960,376,647.06 activity Cash paid for purchase of goods and 641,518,556.89 537,101,324.50 reception of labor services Net increase of loans and advances to customers Net increase of due from central bank and due from banks Cash from payment for settlement of the original insurance contract Net increase of the financial assets held for trading purpose Net increase of the lending capital 21 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Cash paid for interest, service charge and commission Cash for payment of policy dividend Cash paid to and for staff 180,290,878.29 176,471,053.74 Taxes paid 62,198,665.36 76,129,709.10 Other business activity related cash 102,892,584.19 103,042,357.86 payments Subtotal of cash flow out from operating 986,900,684.73 892,744,445.20 activity Net cash flow arising from operating 10,730,388.47 67,632,201.86 activities II. Net cash flows arising from investment activities Cash received from recovery of investment Cash received from investment income Net cash from disposal of fixed assets, intangible assets and recovery of 36,918.89 3,582.90 other long term assets Net cash received from disposal of subsidiaries and other operating units Other investment-related cash receipts Subtotal of cash flow in from investment 36,918.89 3,582.90 activity Cash paid for purchase/construction of fixed assets, Intangible assets and other 50,766,649.74 20,901,254.20 long term assets Cash paid for investment Net increase of the pledged loan Net cash paid for acquisition of subsidiaries and other operation units Other investment-related cash payments Subtotal of cash flow out from investment 50,766,649.74 20,901,254.20 activity Net cash flow arising from investment -50,729,730.85 -20,897,671.30 22 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text activities III. Net cash flow arising from financing activities Cash received from absorbing 18,585,600.00 investment Incl.: Cash received from the subsidiaries’ absorption of minority shareholders’ investment Cash received from loans 210,000,000.00 160,000,000.00 Cash received from bond issuing Other fund-raising related cash receipts Subtotal of cash flow in from fund raising 228,585,600.00 160,000,000.00 activity Cash paid for debt repayment 199,632,048.06 88,998,550.00 Cash paid for dividend/profit 6,222,107.97 7,556,182.15 distribution or repayment of interest Including: Dividend and profit paid by the subsidiaries to minority shareholders Cash paid for other financing activities Sub-total cash flow paid for financing 205,854,156.03 96,554,732.15 activities Net cash flows arising from financing 22,731,443.97 63,445,267.85 activities IV. Change of exchange rate influencing the -132,432.95 -352,953.76 cash and cash equivalent V. Net increase of cash and cash -17,400,331.36 109,826,844.65 equivalents Plus: Opening balance of cash and 162,623,059.97 184,947,891.32 cash equivalents VI. Ending balance of cash and cash 145,222,728.61 294,774,735.97 equivalents Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 6. Cash Flow Statement, Parent Company In CNY Items Amount incurred in the reporting period Amount incurred in the previous period 23 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text I. Net cash flows arising from operating activities Cash received from sales of goods 34,539,681.84 26,501,235.69 and supply of labor service Rebated taxes received Other operation activity related cash 875,652,514.96 378,902,629.82 receipts Subtotal of cash flow in from operating 910,192,196.80 405,403,865.51 activity Cash paid for purchase of goods and reception of labor services Cash paid to and for staff 23,140,836.36 20,221,481.43 Taxes paid 2,725,897.25 2,903,990.84 Other business activity related cash 900,850,128.56 356,309,026.90 payments Subtotal of cash flow out from operating 926,716,862.17 379,434,499.17 activity Net cash flow arising from operating -16,524,665.37 25,969,366.34 activities II. Net cash flow arising from investment activities Cash received from recovery of investment Cash received from investment income Net cash from disposal of fixed assets, intangible assets and recovery of 23,000.00 other long term assets Net cash received from disposal of subsidiaries and other operating units Other investment-related cash receipts Subtotal of cash flow in from investment 23,000.00 activity Cash paid for purchase/construction of fixed assets, Intangible assets and other 29,300,461.40 6,076,401.50 long term assets Cash paid for investment 24 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Net cash paid for acquisition of subsidiaries and other operation units Other investment- related cash payments Subtotal of cash flow out from investment 29,300,461.40 6,076,401.50 activity Net cash flow arising from investment -29,277,461.40 -6,076,401.50 activities III. Net cash flow arising from financing activities Cash received from absorbing 18,585,600.00 investment Cash received from loans 210,000,000.00 160,000,000.00 Cash received from bond issuing Other fund-raising related cash receipts Subtotal of cash flow in from fund raising 228,585,600.00 160,000,000.00 activity Cash paid for debt repayment 195,000,000.00 80,000,000.00 Cash paid for dividend/profit 5,887,220.50 7,093,992.11 distribution or repayment of interest Cash paid for other financing activities Sub-total cash flow paid for financing 200,887,220.50 87,093,992.11 activities Net cash flows arising from financing 27,698,379.50 72,906,007.89 activities IV. Change of exchange rate influencing the -40,167.58 -58,497.86 cash and cash equivalent V. Net increase of cash and cash -18,143,914.85 92,740,474.87 equivalents Plus: Opening balance of cash and 134,970,466.27 128,958,944.43 cash equivalents VI. Ending balance of cash and cash 116,826,551.42 221,699,419.30 equivalents Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui II. Note to the Adjustment of the Financial Statements 1. Adjustment of the relevant financial statements at the current year beginning according to the new standards for 25 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text financial instruments, the new standards for revenues and the new standards for lease initially implemented Consolidated Balance Sheet In CNY The amount involved in the Items December 31, 2018 January 01, 2019 adjustment Current assets: Monetary capital 164,828,059.97 164,828,059.97 Notes receivable and 377,597,503.46 377,597,503.46 accounts receivable Where: Notes 7,051,846.85 7,051,846.85 receivable Accounts 370,545,656.61 370,545,656.61 receivable Advance payments 13,666,816.33 13,666,816.33 Other receivables 45,870,582.26 45,870,582.26 Inventories 1,782,306,301.70 1,782,306,301.70 Other current assets 73,703,312.24 73,703,312.24 Total current assets 2,457,972,575.96 2,457,972,575.96 Non-current assets: Available-for-sale financial 85,000.00 Inapplicable -85,000.00 assets Long-term equity 44,881,063.15 44,881,063.15 investment Investment in other equity Inapplicable 85,000.00 85,000.00 instruments Investment real estate 377,319,433.03 377,319,433.03 Fixed assets 425,649,562.85 425,649,562.85 Construction-in-process 12,041,126.00 12,041,126.00 Intangible assets 43,545,477.61 43,545,477.61 Long-term expenses to be 128,572,545.15 128,572,545.15 apportioned Deferred income tax asset 100,675,706.09 100,675,706.09 Other non-current assets 8,949,160.42 8,949,160.42 Total non-current assets 1,141,719,074.30 1,141,719,074.30 Total assets 3,599,691,650.26 3,599,691,650.26 Current liabilities: 26 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Short term borrowings 547,118,452.97 547,118,452.97 Notes payable and 259,913,612.34 259,913,612.34 accounts payable Advance Receipts 16,459,445.00 16,459,445.00 Payroll payable to the 69,779,037.83 69,779,037.83 employees Taxes payable 55,923,171.92 55,923,171.92 Other payables 71,819,930.30 71,819,930.30 Including: interest 772,351.26 772,351.26 payable Non-current liabilities due 347,470.00 347,470.00 within a year Total current liabilities 1,021,361,120.36 1,021,361,120.36 Non-current liabilities: Long-term borrowings 4,517,110.00 4,517,110.00 Deferred income 3,672,855.36 3,672,855.36 Total non-current liabilities 8,189,965.36 8,189,965.36 Total liabilities 1,029,551,085.72 1,029,551,085.72 Owner’s equity: Capital Stock 438,744,881.00 438,744,881.00 Capital Reserve 1,062,455,644.22 1,062,455,644.22 Other comprehensive -5,442,139.78 -5,442,139.78 income Surplus Reserve 223,015,793.80 223,015,793.80 Retained earnings 851,360,603.66 851,360,603.66 Total owners’ equity attributable 2,570,134,782.90 2,570,134,782.90 to the parent company Minority shareholders’ 5,781.64 5,781.64 equity Total owner’s equity 2,570,140,564.54 2,570,140,564.54 Total liabilities and owners’ 3,599,691,650.26 3,599,691,650.26 equity Balance Sheet, Parent Company In CNY The amount involved in the Items December 31, 2018 January 01, 2019 adjustment 27 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text Current assets: Monetary capital 137,175,466.27 137,175,466.27 Notes receivable and 737,636.38 737,636.38 accounts receivable Accounts 737,636.38 737,636.38 receivable Other receivables 870,739,378.37 870,739,378.37 Other current assets 10,081,272.94 10,081,272.94 Total current assets 1,018,733,753.96 1,018,733,753.96 Non-current assets: Available-for-sale financial 85,000.00 Inapplicable assets Long-term equity 1,376,129,654.08 1,376,129,654.08 investment Investment in other equity Inapplicable 85,000.00 instruments Investment real estate 297,042,937.87 297,042,937.87 Fixed assets 297,517,472.81 297,517,472.81 Construction-in-process 12,041,126.00 12,041,126.00 Intangible assets 35,337,052.82 35,337,052.82 Long-term expenses to be 4,500,638.97 4,500,638.97 apportioned Deferred income tax asset 952,857.33 952,857.33 Other non-current assets 4,493,971.35 4,493,971.35 Total non-current assets 2,028,100,711.23 2,028,100,711.23 Total assets 3,046,834,465.19 3,046,834,465.19 Current liabilities: Short term borrowings 505,000,000.00 505,000,000.00 Notes payable and 52,324,191.98 52,324,191.98 accounts payable Advance Receipts 1,636,520.02 1,636,520.02 Payroll payable to the 11,589,634.34 11,589,634.34 employees Taxes payable 943,919.26 943,919.26 Other payables 57,997,397.28 57,997,397.28 Including: interest 685,419.80 685,419.80 28 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Full Text payable Total current liabilities 629,491,662.88 629,491,662.88 Non-current liabilities: Deferred income 3,672,855.36 3,672,855.36 Total non-current liabilities 3,672,855.36 3,672,855.36 Total liabilities 633,164,518.24 633,164,518.24 Owner’s equity: Capital Stock 438,744,881.00 438,744,881.00 Capital Reserve 1,068,111,185.32 1,068,111,185.32 Surplus Reserve 223,015,793.80 223,015,793.80 Retained earnings 683,798,086.83 683,798,086.83 Total owner’s equity 2,413,669,946.95 2,413,669,946.95 Total liabilities and owners’ 3,046,834,465.19 3,046,834,465.19 equity 2. Note to the retroactive adjustment of the previous comparative data according to the new standards for financial instruments and the new standards for lease initially implemented Inapplicable III. Auditor’s Report Has the first quarterly report been audited No 29