深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 1 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Shenzhen China Bicycle Company (Holdings) Limited THE THIRD QUARTERLY REPORT FOR 2016 October 2016 2 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 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 hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. All directors of the Company are attended the Meeting for quarterly report deliberation. Principal of the Company Li Hai, Person in Charge of Accounting Works Sun Longlong and Person in Charge of Accounting Organ (Accounting Officer) Zhong Xiaojin hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete. 3 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Section II. Main accounting data and changes of shareholders I. Main accounting data and index Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not □Yes √ No Current period-end Period-end of last year Increase/decrease Total assets (RMB) 63,419,158.18 45,869,094.97 38.26% Net assets attributable to shareholders of listed company 13,845,614.31 11,765,046.11 17.68% (RMB) Increase/decrease in Increase/decrease in comparison with comparison with Year-begin to end of Current period year-begin to same period of last the Period Period-end of last year year Operating revenue (RMB) 54,175,577.57 -13.72% 119,949,590.90 -13.91% Net profit attributable to shareholders of the listed 1,632,211.91 1,238.60% 2,080,568.20 286.65% company (RMB) Net profit attributable to shareholders of the listed company after deducting 1,467,114.11 2,204.37% 1,661,041.62 271.75% non-recurring gains and losses (RMB) Net cash flow arising from -- -- -5,707,875.47 7,195.74% operating activities (RMB) Basic earnings per share 0.0030 1,400.00% 0.0038 280.00% (RMB/Share) Diluted earnings per share 0.0030 1,400.00% 0.0038 280.00% (RMB/Share) Weighted average ROE 12.53% 11.53% 16.25% 11.83% In RMB Amount from year-begin to Item Note end of the Period Other gains/losses qualify the definition of non-recurring gains 560,519.82 and losses 4 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Less: impact on income tax 140,129.96 Impact on minority shareholders’ equity (post-tax) 863.28 Total 419,526.58 -- Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons □ Applicable √ Not applicable In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss. II. Statement of the total shareholders and shares-held of top ten shareholders at end of the Period 1. Number of common shareholders and preference shareholders with voting rights recovered and top ten common shareholders In share Total preference shareholders with voting Total number of common shareholders at the end of report 53,355 rights recovered at end of 0 period reporting period (if applicable) Top ten shareholders Proport Number of share Amount of Nature of ion of Amount of pledged/frozen Shareholders restricted shares shareholder shares shares held State of held Amount held share Domestic Shenzhen Guosheng Energy non-State-owned 11.52% 63,508,747 0 Investment Development Co., Ltd. legal person Foreign legal UOB (H.K.) Co., Ltd. 2.89% 15,907,850 0 person Foreign legal Guosen Securities (H.K.) Co., Ltd. 2.54% 13,988,425 0 person Shenwan Hongyuan Securities Foreign legal 1.08% 5,959,357 0 (Hongkong) Co., Ltd. person State-owned legal CMS H.K. Co., Ltd. 0.72% 3,964,790 0 person Li Huili Domestic nature 0.71% 3,891,124 0 5 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 person Domestic nature Xu Hongbo 0.57% 3,137,419 0 person Domestic nature Zong Bin 0.55% 3,053,800 0 person Domestic nature Zeng Ying 0.54% 3,000,000 0 person Specific account of property Domestic disposition for bankruptcy non-State-owned 0.47% 2,602,402 0 enterprise of CBC legal person Particular about top ten shareholders with un-restrict shares held Amount of un-restrict Type of shares Shareholders shares held Type Amount Shenzhen Guosheng Energy Investment Development 63,508,747 RMB ordinary shares 63,508,747 Co., Ltd. Domestically listed UOB (H.K.) Co., Ltd. 15,907,850 15,907,850 foreign shares Domestically listed Guosen Securities (H.K.) Co., Ltd. 13,988,425 13,988,425 foreign shares Domestically listed Shenwan Hongyuan Securities (Hongkong) Co., Ltd. 5,959,357 5,959,357 foreign shares Domestically listed CMS H.K. Co., Ltd. 3,964,790 3,964,790 foreign shares Domestically listed Li Huili 3,891,124 3,891,124 foreign shares Domestically listed Xu Hongbo 3,137,419 3,137,419 foreign shares Zong Bin 3,053,800 RMB ordinary shares 3,053,800 Domestically listed Zeng Ying 3,000,000 3,000,000 foreign shares RMB ordinary shares 1,383,313 Specific account of property disposition for bankruptcy 2,602,402 Domestically listed enterprise of CBC 1,219,089 foreign shares Li Huili, the spouse of actual controller Ji Hanfei, holding B-share of the Company on behalf of Shenzhen Guosheng Energy Investment Explanation on associated relationship among the Development Co., Ltd., beyond that, the Company has no idea of aforesaid shareholders whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. 6 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period □ Yes √ No The 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 of shareholders with preferred stock held and the top ten shareholdings □Applicable √Not applicable 7 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Section III. Important events I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons √ Applicable □Not applicable In RMB Opening Period or Closing Period or Items same period last ye Changes Reasons Current Period ar Monetary Fund 18,084,366.19 26,752,065.66 -32.40% Change of the settlement means and purchasing fixed assets Note receivable 9,106,518.00 Change of the settlement means Accounts receivable 20,449,192.45 9,195,296.32 122.39% Mainly due to the receivable increased for peak seasons Advance payment 2,878,925.12 397,833.20 623.65% The agency fee, paid in advance for preparing the private placements Fixed assets 3,813,112.98 1,007,906.43 278.32% Purchasing fixed assets in the Period Accounts payable 20,374,808.39 7,787,813.83 161.62% Account receivable increased due to making up the order for peak season from subsidiary Payment in advance 3,216,434.91 2,024,718.30 58.86% Account received in advance increased due to making up the order for peak season from subsidiary Tax payable 2,750,775.13 1,271,303.96 116.37% The VAT and corporate income tax increased Operating profit 3,362,745.50 1,014,676.17 231.41% Mainly because the adjustment for product structure and sales costs declined Income tax expense 1,014,665.68 345,032.59 194.08% Total profit growth Net profit 2,908,599.64 791,365.58 267.54% Mainly because the adjustment for product structure and sales costs declined Net cash flows from -5,707,875.47 -78,235.71 7195.74% The agency fee, paid in advance for preparing the operating activities private placements and change of the settlement means Net cash flow from -2,959,824.00 -253,346.61 1068.29% Purchasing more fixed assets investing activities II. Progress of significant events, their influences, and analysis and explanation of their solutions √ Applicable □Not applicable 8 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 The Company planning a private placement in July 2016, and the placement still in progress so far. Information index for temporary report Overview Date for disclosure disclosure Securities Times, Hong Kong Notice of Suspension for Planning a Private 2016-07-04 Commercial Daily and Juchao Website Placement www.cninfo.com.cn Securities Times, Hong Kong Notice of Progress of Planning a Private 2016-07-15 Commercial Daily and Juchao Website Placement www.cninfo.com.cn Securities Times, Hong Kong Notice of Progress of Planning a Private 2016-07-22 Commercial Daily and Juchao Website Placement www.cninfo.com.cn Securities Times, Hong Kong Notice of Resolution of the 19th Session 2016-07-28 Commercial Daily and Juchao Website (temporary) of 9th BOD www.cninfo.com.cn Securities Times, Hong Kong Notice of Resolution of the 6th Session 2016-07-28 Commercial Daily and Juchao Website (temporary) of 8th Supervisory Committee www.cninfo.com.cn Securities Times, Hong Kong Plan of the Private Placement of A-Share for 2016-07-28 Commercial Daily and Juchao Website Year of 2016 of CBC www.cninfo.com.cn Securities Times, Hong Kong Notice of Outward Investment 2016-07-28 Commercial Daily and Juchao Website www.cninfo.com.cn Securities Times, Hong Kong Notice of Resumption 2016-07-28 Commercial Daily and Juchao Website www.cninfo.com.cn III. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period □Applicable √Not applicable The Company had no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period. IV. Estimation of operation performance for year of 2016 Estimation of 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 of reason □Applicable √Not applicable 9 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 V. Particular about security investment □ Applicable √ Not applicable The Company had no security investment in Period. VI. Particulars about derivatives investment □ Applicable √ Not applicable The Company had no derivatives investment in Period. VII. Registration form of receiving research, communication and interview in the report period √ Applicable □Not applicable Time Way Type Basic situation index of investigation July to September 2016 Telephone communication Individual Reorganization of the Company VIII. Guarantee outside against the regulation □Applicable √Not applicable The Company had no guarantee outside against the regulation in the period. IX. 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. 10 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Section IV. Financial Statement I. Financial statement 1. Consolidated Balance Sheet Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED 2016-09-30 In RMB Item Closing balance Opening balance Current assets: Monetary funds 18,084,366.19 26,752,065.66 Settlement provisions Capital lent Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes receivable 9,106,518.00 Accounts receivable 20,449,192.45 9,195,296.32 Accounts paid in advance 2,878,925.12 397,833.20 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Interest receivable Dividend receivable Other receivables 850,851.60 395,523.78 Purchase restituted finance asset Inventories 4,946,875.53 4,057,247.68 Divided into assets held for sale Non-current asset due within one year Other current assets 209,155.59 Total current assets 56,316,728.89 41,007,122.23 Non-current assets: Loans and payments on behalf 11 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Finance asset available for sales Held-to-maturity investment Long-term account receivable Long-term equity investment Investment property Fixed assets 3,813,112.98 1,007,906.43 Construction in progress Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 3,200,250.00 3,765,000.00 Expense on Research and Development Goodwill Long-term expenses to be apportioned Deferred income tax asset 89,066.31 89,066.31 Other non-current asset Total non-current asset 7,102,429.29 4,861,972.74 Total assets 63,419,158.18 45,869,094.97 Current liabilities: Short-term loans Loan from central bank Absorbing deposit and interbank deposit Capital borrowed Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable Accounts payable 20,374,808.39 7,787,813.83 Accounts received in advance 3,216,434.91 2,024,718.30 Selling financial asset of repurchase Commission charge and commission payable 12 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Wage payable 1,256,448.60 1,384,667.20 Taxes payable 2,750,775.13 1,271,303.96 Interest payable Dividend payable Other accounts payable 19,521,860.19 20,010,360.36 Reinsurance payables Insurance contract reserve Security trading of agency Security sales of agency Divided into liability held for sale Non-current liabilities due within 1 year Other current liabilities Total current liabilities 47,120,327.22 32,478,863.65 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Long-term account payable Long-term wages payable Special accounts payable Projected liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 47,120,327.22 32,478,863.65 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 13 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 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 -1,198,009,857.55 -1,200,090,425.75 Total owner’s equity attributable to 13,845,614.31 11,765,046.11 parent company Minority interests 2,453,216.65 1,625,185.21 Total owner’s equity 16,298,830.96 13,390,231.32 Total liabilities and owner’s equity 63,419,158.18 45,869,094.97 Legal Representative: Li Hai Person in charge of Accounting Works: Sun Longlong Person in charge of Accounting Institution: Zhong Xiaojin 2. Balance Sheet of Parent Company In RMB Item Closing balance Opening balance Current assets: Monetary funds 822,908.65 1,199,934.09 Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes receivable Accounts receivable 103,804.81 Account paid in advance 2,661,527.11 82,848.00 Interest receivable Dividends receivable Other receivables 7,553,166.52 12,579,547.00 Inventories Divided into assets held for sale Non-current assets maturing within one year Other current assets Total current assets 11,141,407.09 13,862,329.09 14 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Non-current assets: Available-for-sale financial assets Held-to-maturity investments Long-term receivables Long-term equity investments 10,379.73 10,379.73 Investment property Fixed assets 3,587,925.14 740,727.77 Construction in progress Project materials Disposal of fixed assets Productive biological assets Oil and natural gas assets Intangible assets 3,200,250.00 3,765,000.00 Research and development costs Goodwill Long-term deferred expenses Deferred income tax assets Other non-current assets Total non-current assets 6,798,554.87 4,516,107.50 Total assets 17,939,961.96 18,378,436.59 Current liabilities: Short-term borrowings Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable Accounts payable Accounts received in advance Wage payable 129,385.25 290,130.11 Taxes payable -429,006.58 -278,741.70 Interest payable Dividend payable Other accounts payable 10,107,761.43 10,383,721.15 15 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Divided into liability held for sale Non-current liabilities due within 1 year Other current liabilities Total current liabilities 9,808,140.10 10,395,109.56 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Long-term account payable Long-term wages payable Special accounts payable Projected liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 9,808,140.10 10,395,109.56 Owners’ equity: Share capita 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 reserve 32,673,227.01 32,673,227.01 Retained profit -1,203,723,650.00 -1,203,872,144.83 Total owner’s equity 8,131,821.86 7,983,327.03 Total liabilities and owner’s equity 17,939,961.96 18,378,436.59 16 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 3. Consolidated Profit Statement (Current Period) In RMB Item Current Period Last Period I. Total operating income 54,175,577.57 62,791,436.14 Including: Operating income 54,175,577.57 62,791,436.14 Interest income Insurance gained Commission charge and commission income II. Total operating cost 51,187,078.04 62,565,197.62 Including: Operating cost 48,076,785.50 58,921,893.66 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 Operating tax and extras 206,942.50 161,507.12 Sales expenses 1,545,358.06 2,265,217.29 Administration expenses 1,372,408.89 1,244,192.30 Financial expenses -14,416.91 -27,612.75 Losses of devaluation of asset Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture Exchange income (Loss is listed with “-”) III. Operating profit (Loss is listed with 2,988,499.53 226,238.52 “-”) 17 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Add: Non-operating income 220,577.00 79,140.00 Including: Disposal gains of non-current asset Less: Non-operating expense 638.00 1,450.00 Including: Disposal loss of non-current asset IV. Total Profit (Loss is listed with “-”) 3,208,438.53 303,928.52 Less: Income tax expense 818,770.47 105,139.80 V. Net profit (Net loss is listed with “-”) 2,389,668.06 198,788.72 Net profit attributable to owner’s of 1,632,211.91 121,934.11 parent company Minority shareholders’ gains and 757,456.15 76,854.61 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 as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss (II) Other comprehensive income items which will be reclassified subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 2. Gains or losses arising from changes in fair value of available-for-sale financial assets 18 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments 5. Translation differences arising on translation of foreign currency financial statements 6. Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 2,389,668.06 198,788.72 Total comprehensive income 1,632,211.91 121,934.11 attributable to owners of parent Company Total comprehensive income 757,456.15 76,854.61 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.0030 0.0002 (ii) Diluted earnings per share 0.0030 0.0002 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 Institution: Zhong Xiaojin 4. Profit Statement of Parent Company (Current Period) In RMB Item Current Period Last Period I. Operating income 1,265,426.67 1,620,464.44 Less: Operating cost 688,506.70 799,954.71 Operating tax and extras 85,047.01 Sales expenses Administration expenses 932,878.31 871,047.64 Financial expenses -195.57 -501.58 Losses of devaluation of asset 19 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture II. Operating profit (Loss is listed -355,762.77 -135,083.34 with “-”) Add: Non-operating income 220,577.00 79,140.00 Including: Disposal gains of non-current asset Less: Non-operating expense 1,450.00 Including: Disposal loss of non-current asset III. Total Profit (Loss is listed with -135,185.77 -57,393.34 “-”) Less: Income tax expense IV. Net profit (Net loss is listed with -135,185.77 -57,393.34 “-”) 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 as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss (II) Other comprehensive income items which will be reclassified subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 20 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 2. Gains or losses arising from changes in fair value of available-for-sale financial assets 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments 5. Translation differences arising on translation of foreign currency financial statements 6. Other VI. Total comprehensive income -135,185.77 -57,393.34 VII. Earnings per share: (i) Basic earnings per share -0.0002 -0.0001 (ii) Diluted earnings per share -0.0002 -0.0001 5. Consolidated Cash Flow Statement (year-begin to end of this period) In RMB Item Current Period Last Period I. Total operating income 119,949,590.90 139,328,236.82 Including: Operating income 119,949,590.90 139,328,236.82 Interest income Insurance gained Commission charge and commission income II. Total operating cost 116,586,845.40 138,313,560.65 Including: Operating cost 108,398,018.87 128,914,415.77 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 21 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Operating tax and extras 278,067.89 392,747.65 Sales expenses 4,773,540.42 5,876,825.16 Administration expenses 3,721,048.96 3,799,261.70 Financial expenses -558,942.46 -647,841.20 Losses of devaluation of asset -24,888.28 -21,848.43 Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture Exchange income (Loss is listed with “-”) III. Operating profit (Loss is listed with 3,362,745.50 1,014,676.17 “-”) Add: Non-operating income 562,666.82 128,528.00 Including: Disposal gains of non-current asset Less: Non-operating expense 2,147.00 6,806.00 Including: Disposal loss of non-current asset IV. Total Profit (Loss is listed with “-”) 3,923,265.32 1,136,398.17 Less: Income tax expense 1,014,665.68 345,032.59 V. Net profit (Net loss is listed with “-”) 2,908,599.64 791,365.58 Net profit attributable to owner’s of 2,080,568.20 538,106.97 parent company Minority shareholders’ gains and losses 828,031.44 253,258.61 VI. Net other comprehensive income after-tax Net other comprehensive income after-tax attributable to owners of parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of the investee accounted for using equity method which 22 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 will not be reclassified subsequently to profit and loss (II) Other comprehensive income items which will be reclassified subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 2. Gains or losses arising from changes in fair value of available-for-sale financial assets 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments 5. Translation differences arising on translation of foreign currency financial statements 6. Other Net other comprehensive income after-tax attributable to minority VII. Total other consolidated income 2,908,599.64 791,365.58 Total consolidated income attributable to 2,080,568.20 538,106.97 owners of parent company Total consolidated income attributable to 828,031.44 253,258.61 minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.0038 0.0010 (ii) Diluted earnings per share 0.0038 0.0010 As for the business merger under the same control in the Period, 0.00 Yuan net profit realized before merger by the combined party, the net profit for combined party in last period was 0.00 Yuan. 6. Profit Statement of parent company (from year-begin to end of this period) In RMB 23 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Item Current period Prior period I. Operating income 4,742,196.93 5,459,397.77 Less: operating cost 2,780,550.26 2,630,101.44 Operating tax and extras 27,518.91 235,705.41 Sales expenses Administration expenses 2,247,781.72 2,766,763.66 Financial expenses -23.34 -139.47 Losses of devaluation of asset Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture II. Operating profit (Loss is listed -313,630.62 -173,033.27 with “-”) Add: Non-operating income 558,192.00 128,528.00 Including: Disposal gains of non-current asset Less: Non-operating expense 1,509.00 6,806.00 Including: Disposal loss of non-current asset III. Total Profit (Loss is listed with 243,052.38 -51,311.27 “-”) Less: Income tax expense 94,557.55 1,518.53 IV. Net profit (Net loss is listed with 148,494.83 -52,829.80 “-”) V. Net other comprehensive income after-tax (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss 24 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 (II) Other comprehensive income items which will be reclassified subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 2. Gains or losses arising from changes in fair value of available-for-sale financial assets 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments 5. Translation differences arising on translation of foreign currency financial statements 6. Other VI. Total comprehensive income 148,494.83 -52,829.80 VII. Earnings per share: (i) Basic earnings per share 0.0003 -0.0001 (ii) Diluted earnings per share 0.0003 -0.0001 7. Consolidated Cash Flow Statement (from year-begin to end of this period) In RMB Item Current period Prior period I. Cash flows arising from operating activities: Cash received from selling commodities 51,251,394.74 71,823,069.90 and providing labor 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 25 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Net cash received from reinsurance business Net increase of insured savings and investment Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses Cash received from interest, commission charge and commission Net increase of capital borrowed Net increase of returned business capital Write-back of tax received Other cash received concerning 4,616,717.46 5,632,649.25 operating activities Subtotal of cash inflow arising from 55,868,112.20 77,455,719.15 operating activities Cash paid for purchasing commodities 45,331,191.15 60,378,877.42 and receiving labor service Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 4,832,051.33 5,328,699.45 Taxes paid 1,889,273.30 2,985,300.96 Other cash paid concerning operating 9,523,471.89 8,841,077.03 activities Subtotal of cash outflow arising from 61,575,987.67 77,533,954.86 operating activities Net cash flows arising from operating -5,707,875.47 -78,235.71 activities II. Cash flows arising from investing activities: Cash received from recovering investment Cash received from investment income 26 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 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, 2,959,824.00 253,346.61 intangible and other long-term assets Cash paid for investment Net increase of mortgaged loans Net cash received from subsidiaries and other units Other cash paid concerning investing activities Subtotal of cash outflow from investing 2,959,824.00 253,346.61 activities Net cash flows arising from investing -2,959,824.00 -253,346.61 activities III. Cash flows arising from financing activities Cash received from absorbing investment Including: Cash received from absorbing minority shareholders’ investment by subsidiaries Cash received from loans Cash received from issuing bonds 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 Including: Dividend and profit of minority shareholder paid by subsidiaries Other cash paid concerning financing activities 27 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 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 -8,667,699.47 -331,582.32 equivalents Add: Balance of cash and cash 26,752,065.66 30,163,866.78 equivalents at the period -begin VI. Balance of cash and cash 18,084,366.19 29,832,284.46 equivalents at the period -end 8. Cash Flow Statement of parent company (from year-begin to end of this period) In RMB Item Current period Prior period I. Cash flows arising from operating activities: Cash received from selling commodities 38,250.00 and providing labor services Write-back of tax received Other cash received concerning 10,988,782.41 9,867,887.05 operating activities Subtotal of cash inflow arising from 10,988,782.41 9,906,137.05 operating activities Cash paid for purchasing commodities 32,356.80 643,453.70 and receiving labor service Cash paid to/for staff and workers 1,428,400.08 1,967,399.00 Taxes paid 408,315.93 926,193.21 Other cash paid concerning operating 6,536,911.04 6,675,282.17 activities Subtotal of cash outflow arising from 8,405,983.85 10,212,328.08 operating activities Net cash flows arising from operating 2,582,798.56 -306,191.03 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 28 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 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, 2,959,824.00 222,222.22 intangible and other long-term assets Cash paid for investment Net cash received from subsidiaries and other units Other cash paid concerning investing activities Subtotal of cash outflow from investing 2,959,824.00 222,222.22 activities Net cash flows arising from investing -2,959,824.00 -222,222.22 activities III. Cash flows arising from financing activities Cash received from absorbing investment Cash received from loans Cash received from issuing bonds 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 -377,025.44 -528,413.25 equivalents 29 深圳中华自行车(集团)股份有限公司 2016 年第三季度报告全文 Add: Balance of cash and cash 1,199,934.09 1,363,097.01 equivalents at the period -begin VI. Balance of cash and cash 822,908.65 834,683.76 equivalents at the period -end II. Audit report Whether the third quarter report was audited or not □Yes √No The third quarter report of the Company has not been audited Board of Director of Shenzhen China Bicycle Company (Holdings) Limited 27 October 2016 30