深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Shenzhen China Bicycle Company (Holdings) Limited THE THIRD QUARTERLY REPORT FOR 2017 October 2017 1 深圳中华自行车(集团)股份有限公司 2017 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. 2 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Section II. Basic information of Company I. Main accounting data and index Whether it has retroactive adjustment or re-statement on previous accounting data or not □Yes √No Current period-end Period-end of last year Increase/decrease Total assets (RMB) 62,394,750.79 54,088,275.72 15.36% Net assets attributable to shareholders of listed company 13,005,171.70 14,368,683.58 -9.49% (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) 46,587,182.39 -14.01% 95,516,858.66 -20.37% Net profit attributable to shareholders of the listed 327,866.56 -79.91% -1,363,511.88 -165.54% company (RMB) Net profit attributable to shareholders of the listed company after deducting 247,560.69 -83.13% -1,655,258.58 -199.65% non-recurring gains and losses (RMB) Net cash flow arising from -- -- -6,339,451.88 11.06% operating activities (RMB) Basic earnings per share 0.0006 -80.00% -0.0025 -165.79% (RMB/Share) Diluted earnings per share 0.0006 -80.00% -0.0025 -165.79% (RMB/Share) Weighted average ROE 2.55% -9.98% -9.96% -26.21% Items and amount of extraordinary profit (gains)/losses √Applicable □Not applicable In RMB Amount from year-begin to Item Note end of the Period 3 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Gains/losses from the disposal of non-current asset (including 6,253.14 the write-off that accrued for impairment of assets) Other gains/losses qualify the definition of non-recurring gains 394,209.58 and losses Less: impact on income tax 100,115.68 Impact on minority shareholders’ equity (post-tax) 8,600.34 Total 291,746.70 -- 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 52,397 rights recovered at end of 0 period reporting period (if applicable) Top ten shareholders Amount of Number of share pledged/frozen Nature of Proportion of Amount of Shareholders restricted shareholder shares held shares held State of share Amount shares held Shenzhen Guosheng Domestic Energy non-State-owne 11.52% 63,508,747 0 Pledged 11,000,000 Investment d legal person Development Co., Ltd. UOB (H.K.) Foreign legal 2.89% 15,907,850 0 0 Co., Ltd. person Guosen Foreign legal 2.54% 13,988,425 0 0 Securities 4 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 (H.K.) Co., person Ltd. Hwabao Trust Co., Ltd. – “Hui Huang” Other 1.64% 9,024,079 0 0 No.33 Single Capital Trust Shenwan Hongyuan Foreign legal Securities 1.10% 6,043,657 0 0 person (Hongkong) Co., Ltd. Zhongrong International Trust Co., Ltd. – Zhongrong-Din Other 0.87% 4,774,300 0 0 gfu No.12 Structured Portfolio Fund Trust Scheme Zhongrong International Trust Co., Ltd. – Zhongrong-Din Other 0.87% 4,770,923 0 0 gfu No.13 Structured Portfolio Fund Trust Scheme Zhongrong International Trust Co., Ltd. – Zhongrong-Din Other 0.83% 4,547,797 0 0 gfu No.14 Structured Portfolio Fund Trust Scheme Zhongrong International Other 0.81% 4,464,844 0 0 Trust Co., Ltd. 5 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 – Zhongrong-Din gfu No.11 Structured Portfolio Fund Trust Scheme Domestic Li Huili 0.71% 3,891,124 0 0 nature person Particular about top ten shareholders with un-restrict shares held Type of shares Shareholders Amount of un-restrict shares held Type Amount Shenzhen Guosheng Energy Investment RMB ordinary 63,508,747 63,508,747 Development Co., Ltd. shares Domestically UOB (H.K.) Co., Ltd. 15,907,850 listed foreign 15,907,850 shares Domestically Guosen Securities (H.K.) Co., Ltd. 13,988,425 listed foreign 13,988,425 shares Hwabao Trust Co., Ltd. – “Hui Huang” RMB ordinary 9,024,079 9,024,079 No.33 Single Capital Trust shares Domestically Shenwan Hongyuan Securities 6,043,657 listed foreign 6,043,657 (Hongkong) Co., Ltd. shares Zhongrong International Trust Co., Ltd. RMB ordinary – Zhongrong-Dingfu No.12 Structured 4,774,300 4,774,300 shares Portfolio Fund Trust Scheme Zhongrong International Trust Co., Ltd. RMB ordinary – Zhongrong-Dingfu No.13 Structured 4,770,923 4,770,923 shares Portfolio Fund Trust Scheme Zhongrong International Trust Co., Ltd. RMB ordinary – Zhongrong-Dingfu No.14 Structured 4,547,797 4,547,797 shares Portfolio Fund Trust Scheme Zhongrong International Trust Co., Ltd. RMB ordinary – Zhongrong-Dingfu No.11 Structured 4,464,844 4,464,844 shares Portfolio Fund Trust Scheme Domestically Li Huili 3,891,124 listed foreign 3,891,124 shares Explanation on associated relationship Li Huili, the spouse of actual controller Ji Hanfei, holding B-share of the Company on 6 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 among the aforesaid shareholders behalf of Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of 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. 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 2017 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 Item Ending Period or Opening Period or s form year begin t Changes Reasons ame period last year o now Note receivable 0.00 2,220,000.00 -100.00% Note receivables are paid by endorsement till end of period-end Accounts 24,516,314.64 12,371,386.82 98.17% Acount receivables from subsidiary increased for the peak receivable season Inventory 8,568,881.53 3,118,440.26 174.78% Stock increased for peak season in the period Accounts payable 16,032,810.92 9,751,977.78 64.41% Due to the stock for peak season from subsidiary Tax payable 684,127.96 1,565,153.77 -56.29% The enterprise income tax for year of 2016 was paid in first half year Other payable 26,705,430.16 20,397,287.32 30.93% Bid bond received in the period for privately placement of shares from relevant subscriber Management 4,926,676.97 3,721,048.96 32.40% Agency costs increased for the privately placement of shares expenses Cash received 11,098,169.48 4,616,717.46 140.39% related with other Bid bond received in the period for privately placement of operation shares from relevant subscriber activities II. Progress of significant events, their influences, and analysis and explanation of their solutions √ Applicable □Not applicable In July 2016, the company initiated the planning for non-public offering of shares; the company's Board of Directors reviewed and approved the Plan for Non-public Offering of A Shares in 2016. On the basis of the due diligence, audit evaluation and commercial negotiation of the intermediary institution, and combined with the actual situation of the capital market and the company, in February 2017, the Board of Directors of the company considered and approved the Proposal on Adjusting the Company's Non-public Offering of A Shares, the Plan for Non-public Offering of A Shares in 2016 (Revision) and so on. According to the revision of the plan, the total amount of this private placement was no more than 1.2 billion Yuan, after deducting the issue costs, the company planned to invest 800 million Yuan of funds for the “intelligent community building talk-back equipment and system platform construction project”, and invest 400 million Yuan of funds for the "sports experience online and offline sales platform and R & D center construction project”. In May 2017, the Board of Directors of the Company examined and approved the Proposal on Adjusting the 8 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Scheme of Non-Public Offering of Shares by the Company. According to the plan revision, the total amount of raised funds for this non-public offering should not exceed RMB 800 million, after deducting the issuance expenses, the company planned to invest RMB 660 million of funds for “online and offline marketing network platform construction and upgrading project”, and planned to invest RMB 140 million of funds for “R & D center construction project”. On June 19, 2017, the company convened the second extraordinary general meeting of shareholders in 2017 which approved the aforesaid proposal on non-public offering of shares. Further works still in process Information index for temporary report Overview Date for disclosure disclosure Suspension Notice for Privately Placement of Shares Juchao Website 2017-02-16 Adjustment http://www.cninfo.com.cn Continued Suspension and Progress of Privately Placement Juchao Website 2017-02-23 of Shares http://www.cninfo.com.cn Juchao Website Resolution of 22nd Meeting (extraordinary) of 9th BOD 2017-02-28 http://www.cninfo.com.cn Resolution of 8th Meeting (extraordinary) of 8th Supervisory Juchao Website 2017-02-28 Committee http://www.cninfo.com.cn Juchao Website Notice of Investment Abroad (Draft Revision ) 2017-02-28 http://www.cninfo.com.cn Juchao Website Notice of Loan by Mandate 2017-02-28 http://www.cninfo.com.cn Juchao Website Resumption of Stock Trading 2017-02-28 http://www.cninfo.com.cn Suspension Notice for Privately Placement of Shares Juchao Website 2017-05-15 Adjustment http://www.cninfo.com.cn Juchao Website Resolution of 26th Meeting (extraordinary) of 9th BOD 2017-05-22 http://www.cninfo.com.cn Resolution of 10th Meeting (extraordinary) of 8th Juchao Website 2017-05-22 Supervisory Committee http://www.cninfo.com.cn Juchao Website Resumption of Stock Trading 2017-05-22 http://www.cninfo.com.cn Juchao Website Resolution of 2nd Extraordinary Shareholders Meeting 2017 2017-06-19 http://www.cninfo.com.cn III. Commitments that the actual controller, shareholders, related parties, acquirer and the Company have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period □ Applicable √ Not applicable There are no commitments that the actual controller, shareholders, related parties, acquirer and the Company have fulfilled during the 9 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 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 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 Telephone 1 Jan. 2017 to 30 Sept. 2017 Individual Recombination consulting communication Telephone Progress of privately placement of shares 1 Jan. 2017 to 30 Sept. 2017 Individual communication consulting 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. X. Fulfill the precise social responsibility for poverty alleviation The Company has no precise social responsibility for poverty alleviation in the period and has no follow-up plan either 10 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Section IV. Financial Statement I. Financial statement 1. Consolidate balance sheet Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED 2017-09-30 In RMB Item Balance at period-end Balance at period-begin Current assets: Monetary funds 17,076,100.83 24,015,287.71 Settlement provisions Capital lent Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Notes receivable 2,220,000.00 Accounts receivable 24,516,314.64 12,371,386.82 Accounts paid in advance 2,251,564.46 1,867,424.89 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Interest receivable Dividend receivable Other receivables 641,869.07 658,754.09 Purchase restituted finance asset Inventories 8,568,881.53 3,118,440.26 Divided into assets held for sale Non-current asset due within one year Other current assets 2,361,315.96 2,050,830.55 Total current assets 55,416,046.49 46,302,124.32 Non-current assets: Loans and payments on behalf 11 深圳中华自行车(集团)股份有限公司 2017 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 3,497,887.42 3,728,955.11 Construction in progress Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 2,447,250.00 3,012,000.00 Expense on Research and Development Goodwill Long-term expenses to be apportioned Deferred income tax asset 633,566.88 645,196.29 Other non-current asset 400,000.00 400,000.00 Total non-current asset 6,978,704.30 7,786,151.40 Total assets 62,394,750.79 54,088,275.72 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 16,032,810.92 9,751,977.78 Accounts received in advance 3,092,540.13 4,321,059.83 Selling financial asset of repurchase Commission charge and commission payable Wage payable 210,825.24 770,985.97 12 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Taxes payable 684,127.96 1,565,153.77 Interest payable Dividend payable Other accounts payable 26,705,430.16 20,397,287.32 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 46,725,734.41 36,806,464.67 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 46,725,734.41 36,806,464.67 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 13 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Reasonable reserve Surplus public reserve 32,673,227.01 32,673,227.01 Provision of general risk Retained profit -1,198,850,300.16 -1,197,486,788.28 Total owner’s equity attributable to parent 13,005,171.70 14,368,683.58 company Minority interests 2,663,844.68 2,913,127.47 Total owner’s equity 15,669,016.38 17,281,811.05 Total liabilities and owner’s equity 62,394,750.79 54,088,275.72 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 Balance at period-end Balance at period-begin Current assets: Monetary funds 4,610,079.01 1,143,418.29 Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Notes receivable Accounts receivable Account paid in advance 133,771.48 16,000.00 Interest receivable Dividends receivable Other receivables 11,754,422.53 9,364,086.29 Inventories Divided into assets held for sale Non-current assets maturing within one year Other current assets 2,361,315.96 2,050,830.55 Total current assets 18,859,588.98 12,574,335.13 Non-current assets: Available-for-sale financial assets 14 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Held-to-maturity investments Long-term receivables Long-term equity investments 10,379.73 10,379.73 Investment property Fixed assets 3,360,958.46 3,528,684.59 Construction in progress Project materials Disposal of fixed assets Productive biological assets Oil and natural gas assets Intangible assets 2,447,250.00 3,012,000.00 Research and development costs Goodwill Long-term deferred expenses Deferred income tax assets Other non-current assets 400,000.00 400,000.00 Total non-current assets 6,218,588.19 6,951,064.32 Total assets 25,078,177.17 19,525,399.45 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 1,086,507.70 Wage payable 112,801.24 112,700.06 Taxes payable 102,808.93 81,512.92 Interest payable Dividend payable Other accounts payable 18,062,653.15 10,662,912.89 Divided into liability held for sale Non-current liabilities due within 1 year 15 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Other current liabilities Total current liabilities 18,278,263.32 11,943,633.57 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 18,278,263.32 11,943,633.57 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 -1,205,055,558.01 -1,204,273,705.98 Total owner’s equity 6,799,913.85 7,581,765.88 Total liabilities and owner’s equity 25,078,177.17 19,525,399.45 3. Consolidated Profit Statement (the period) In RMB Item Current Period Last Period I. Total operating income 46,587,182.39 54,175,577.57 16 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Including: Operating income 46,587,182.39 54,175,577.57 Interest income Insurance gained Commission charge and commission income II. Total operating cost 46,181,463.39 51,187,078.04 Including: Operating cost 43,119,915.64 48,076,785.50 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 81,383.34 206,942.50 Sales expenses 1,399,215.81 1,545,358.06 Administration expenses 1,587,145.47 1,372,408.89 Financial expenses -6,196.87 -14,416.91 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 “-”) Other income III. Operating profit (Loss is listed 405,719.00 2,988,499.53 with “-”) Add: Non-operating income 109,552.14 220,577.00 Including: Disposal gains of 6,253.14 non-current asset 17 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Less: Non-operating expense 800.00 638.00 Including: Disposal loss of non-current asset IV. Total Profit (Loss is listed with 514,471.14 3,208,438.53 “-”) Less: Income tax expense 818,770.47 V. Net profit (Net loss is listed with “-”) 514,471.14 2,389,668.06 Net profit attributable to owner’s of 327,866.56 1,632,211.91 parent company Minority shareholders’ gains and 186,604.58 757,456.15 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 3. Gains or losses arising from reclassification of held-to-maturity 18 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 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 514,471.14 2,389,668.06 Total comprehensive income attributable to owners of parent 327,866.56 1,632,211.91 Company Total comprehensive income 186,604.58 757,456.15 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.0006 0.0030 (ii) Diluted earnings per share 0.0006 0.0030 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 (the period) In RMB Item Current Period Last Period I. Operating income 1,605,386.93 1,265,426.67 Less: Operating cost 784,652.86 688,506.70 Operating tax and extras 720.00 Sales expenses Administration expenses 1,033,403.43 932,878.31 Financial expenses -2,685.25 -195.57 Losses of devaluation of asset Add: Changing income of fair 19 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 value(Loss is listed with “-”) Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture Other income II. Operating profit (Loss is listed -210,704.11 -355,762.77 with “-”) Add: Non-operating income 103,160.00 220,577.00 Including: Disposal gains of non-current asset Less: Non-operating expense Including: Disposal loss of non-current asset III. Total Profit (Loss is listed with -107,544.11 -135,185.77 “-”) Less: Income tax expense IV. Net profit (Net loss is listed with -107,544.11 -135,185.77 “-”) 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 2017 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 -107,544.11 -135,185.77 VII. Earnings per share: (i) Basic earnings per share -0.0002 -0.0002 (ii) Diluted earnings per share -0.0002 -0.0002 5. Consolidated Profit Statement (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Total operating income 95,516,858.66 119,949,590.90 Including: Operating income 95,516,858.66 119,949,590.90 Interest income Insurance gained Commission charge and commission income II. Total operating cost 97,518,486.64 116,586,845.40 Including: Operating cost 88,806,188.47 108,398,018.87 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of 21 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 insurance contract reserve Bonus expense of guarantee slip Reinsurance expense tax and extras 172,736.39 278,067.89 Sales expenses 3,867,917.68 4,773,540.42 Administration expenses 4,926,676.97 3,721,048.96 Financial expenses -207,761.78 -558,942.46 Losses of devaluation of asset -47,271.09 -24,888.28 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 “-”) Other income III. Operating profit (Loss is listed -2,001,627.98 3,362,745.50 with “-”) Add: Non-operating income 401,262.72 562,666.82 Including: Disposal gains of 6,253.14 non-current asset Less: Non-operating expense 800.00 2,147.00 Including: Disposal loss of non-current asset IV. Total Profit (Loss is listed with -1,601,165.26 3,923,265.32 “-”) Less: Income tax expense 11,629.41 1,014,665.68 V. Net profit (Net loss is listed with “-”) -1,612,794.67 2,908,599.64 Net profit attributable to owner’s of -1,363,511.88 2,080,568.20 parent company Minority shareholders’ gains and -249,282.79 828,031.44 losses VI. Net after-tax of other comprehensive income Net after-tax of other comprehensive income attributable to owners of parent 22 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 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 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 -1,612,794.67 2,908,599.64 Total comprehensive income attributable to owners of parent -1,363,511.88 2,080,568.20 Company 23 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 Total comprehensive income -249,282.79 828,031.44 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share -0.0025 0.0038 (ii) Diluted earnings per share -0.0025 0.0038 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 6. Profit Statement of Parent Company (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Operating income 4,834,292.89 4,742,196.93 Less: Operating cost 2,778,728.66 2,780,550.26 Operating tax and extras 720.00 27,518.91 Sales expenses Administration expenses 3,199,158.88 2,247,781.72 Financial expenses -223.62 -23.34 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 Other income II. Operating profit (Loss is listed -1,144,091.03 -313,630.62 with “-”) Add: Non-operating income 362,239.00 558,192.00 Including: Disposal gains of non-current asset Less: Non-operating expense 1,509.00 Including: Disposal loss of non-current asset III. Total Profit (Loss is listed with -781,852.03 243,052.38 “-”) Less: Income tax expense 94,557.55 24 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 IV. Net profit (Net loss is listed with -781,852.03 148,494.83 “-”) 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 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 -781,852.03 148,494.83 VII. Earnings per share: (i) Basic earnings per share -0.0014 0.0003 (ii) Diluted earnings per share -0.0014 0.0003 25 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 7. Consolidated Cash Flow Statement (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor 36,888,521.94 51,251,394.74 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 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 11,098,169.48 4,616,717.46 operating activities Subtotal of cash inflow arising from 47,986,691.42 55,868,112.20 operating activities Cash paid for purchasing commodities and receiving labor 39,270,323.28 45,331,191.15 service Net increase of customer loans and advances 26 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 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 5,147,547.23 4,832,051.33 Taxes paid 2,037,613.77 1,889,273.30 Other cash paid concerning 7,870,659.02 9,523,471.89 operating activities Subtotal of cash outflow arising from 54,326,143.30 61,575,987.67 operating activities Net cash flows arising from operating -6,339,451.88 -5,707,875.47 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 60,000.00 assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing 60,000.00 activities Cash paid for purchasing fixed, 659,735.00 2,959,824.00 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 27 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 investing activities Subtotal of cash outflow from investing 659,735.00 2,959,824.00 activities Net cash flows arising from investing -599,735.00 -2,959,824.00 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 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 -6,939,186.88 -8,667,699.47 equivalents Add: Balance of cash and cash 24,015,287.71 26,752,065.66 equivalents at the period -begin VI. Balance of cash and cash 17,076,100.83 18,084,366.19 equivalents at the period -end 28 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 8. Cash Flow Statement of Parent Company (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor 18,237.60 services Write-back of tax received Other cash received concerning 14,141,053.76 10,988,782.41 operating activities Subtotal of cash inflow arising from 14,159,291.36 10,988,782.41 operating activities Cash paid for purchasing commodities and receiving labor 32,356.80 service Cash paid to/for staff and workers 1,896,360.11 1,428,400.08 Taxes paid 301,847.14 408,315.93 Other cash paid concerning 8,484,628.39 6,536,911.04 operating activities Subtotal of cash outflow arising from 10,682,835.64 8,405,983.85 operating activities Net cash flows arising from operating 3,476,455.72 2,582,798.56 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 29 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 activities Cash paid for purchasing fixed, 9,795.00 2,959,824.00 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 9,795.00 2,959,824.00 activities Net cash flows arising from investing -9,795.00 -2,959,824.00 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 3,466,660.72 -377,025.44 equivalents Add: Balance of cash and cash 1,143,418.29 1,199,934.09 equivalents at the period -begin 30 深圳中华自行车(集团)股份有限公司 2017 年第三季度报告全文 VI. Balance of cash and cash 4,610,079.01 822,908.65 equivalents at the period -end II. Audit report Whether the 3rd quarterly report has been audited or not □Yes √ No The 3rd quarterly report of the Company has not been audited. 31