Shenzhen China Bicycle Company (Holdings) Limited THE THIRD QUARTERLY REPORT FOR 2019 October 2019 1 Section I. Important Notes Board of Directors and the Supervisory Committee of SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED (hereinafter referred to as the Company) and its directors, supervisors and senior executives 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 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 (RM B) 68,575,233.68 73,242,960.17 -6.37% Net assets attributable to shareholders of listed company 14,547,505.53 14,306,301.94 1.69% (RM B) Increase/decrease in Increase/decrease in Year-begin to end of comparison with Current period comparison with same the Period year-begin to period of last year Period-end of last year Operating revenue (RM B) 24,574,484.81 -26.68% 62,848,917.83 -37.93% Net profit attributable to shareholders of the listed company 1,040,149.76 96.06% 241,203.59 -77.76% (RM B) Net profit attributable to shareholders of the listed company 1,040,149.76 196.39% 129,759.59 -85.12% after deducting non-recurring gains and losses (RM B) Net cash flow arising from -- -- -7,317,672.68 -6,087.84% operating activities (RM B) Basic earnings per share 0.0019 90.00% 0.0004 -80.00% (RM B/Share) Diluted earnings per share 0.0019 90.00% 0.0004 -80.00% (RM B/Share) Weighted average ROE 7.42% 4.25% 1.67% -4.93% Items and amount of extraordinary profit (gains)/losses √Applicable □Not applicable In RM B Amount from year-begin to Item Note end of the Period Other gains/losses qualify the definition of non-recurring gains 148,577.00 - and losses 3 Less: impact on income tax 37,144.25 - Impact on minority shareholders’ equity (post-tax) -11.25 - Total 111,444.00 -- 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. State ment of the total shareholders and s hares-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 Total number of common with voting rights recovered at shareholders at the end of report 53,992 0 period end of reporting period (if applicable) Top ten shareholders Amount of Number of share pledged/frozen Nature of Proportion of Amount of shares Shareholders restricted shares shareholder shares held held State of share Amount held Shenzhen Guosheng Energy Domestic Investment non-State-owned 11.52% 63,508,747 0 - - Development legal person Co., Ltd. UOB (H.K.) Co., Foreign legal 2.89% 15,907,850 0 - - Ltd. person Guosen Securities Foreign legal 2.52% 13,909,425 0 - - (H.K.) Co., Ltd. person Shenwan Hongyuan Foreign legal Securities 1.20% 6,626,116 0 - - person (Hongkong) Co., Ltd. 4 Domestic nature Li Huili 0.71% 3,891,124 0 - - person Domestic nature Xu Hongbo 0.58% 3,187,419 0 - - person State-owned legal CM S HK 0.54% 2,953,382 0 - - person Special Account for Property Domestic Disposal of non-State-owned 0.47% 2,602,402 0 - - Bankrupt legal person Enterprise of CBC Domestic nature Ge Zhiqiong 0.45% 2,486,652 0 - - person Zhuorun Foreign legal Technology Co., 0.36% 2,000,000 0 - - person Ltd. 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 RM B ordinary 63,508,747 63,508,747 Investment 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. 13,909,425 listed foreign 13,909,425 shares Domestically Shenwan Hongyuan Securities 6,626,116 listed foreign 6,626,116 (Hongkong) Co., Ltd. shares Domestically Li Huili 3,891,124 listed foreign 3,891,124 shares Domestically Xu Hongbo 3,187,419 listed foreign 3,187,419 shares Domestically CM S HK 2,953,382 listed foreign 2,953,382 shares 5 RM B ordinary 1,383,313 Special Account for Property shares Disposal of Bankrupt Enterprise of 2,602,402 Domestically CBC listed foreign 1,219,089 shares Domestically Ge Zhiqiong 2,486,652 listed foreign 2,486,652 shares RM B ordinary Zhuorun Technology Co., Ltd. 2,000,000 2,000,000 shares Li Huili, the spouse of actual controller Ji Hanfei, holding B-share of the Company on behalf Explanation on associated of Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company relationship among the aforesaid has no idea of whether other circulated shareholders belong to concerted action persons ruled shareholders in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. Explanation on top ten common shareholders involving margin N/A business (if applicable) Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period □ 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 6 Section III. Important events I. Particular about major changes from ite ms of main accounting statements and financial indexes as well as reasons √ Applicable □Not applicable Ending Period or form Opening Period or same Increase or decrease y-o-y Reasons year begin to now period last year Operation income 62,848,917.83 101,250,275.83 -37.93% Income from business decline Operation cost 57,446,763.42 90,958,528.99 -36.84% Business cost decreased Sales expenses 2,377,317.42 4,356,796.05 -45.43% Sales expenses declined due to the decrease of business income M anagement expenses 3,263,168.76 4,805,269.03 -32.09% M anagement expenses declined due to the decrease of business income Financial expenses -78,872.38 -302,000.97 -73.88% Interest income from bank savings declined Net cash flow from -7,317,672.68 122,208.96 -6087.84% Taxes payable at year-end operating activities last year has been paid in the period Net cash flow from -534,494.04 -17,293.82 2990.66% Purchased machinery investment activities equipment in the year Net cash flow from -7,818,729.82 104,915.14 -7552.43% Taxes payable at year-end operating activities last year has been paid in the period M onetary Fund 8,670,156.44 18,488,886.26 -53.11% Taxes payable at year-end last year has been paid in the period 40,943,384.51 29,007,509.02 41.15% The payment days to Account receivable clients for the business operation is not due Advance payment 1,693,512.99 13,799,753.60 -87.73% The account paid in advance for lithium battery material business 7 last year was progressive delivery in the period Inventory 3,456,156.95 2,386,603.94 44.81% Stock up for the peak season Other current assets 5,607,025.86 2,266,241.66 147.42% The pending deduct input tax increased in the period Intangible assets 941,250.00 1,506,000.00 -37.50% M ainly due to the amortization of intangible assets Notes payable - 2,000,000.00 -100.00% The bank acceptance bill are due to honour Account received in 3,260,235.62 405,779.88 703.45% Account received in advance advance from the customer Taxes payable 177,634.33 6,297,096.28 -97.18% Taxes payable at year-end last year has been paid in the period II. Progress of significant events, their influences, and analysis and explanation of their solutions √ Applicable □Not applicable 1. Plan a non-public issue of shares In July 2016, the Company started to plan a non-public issue of shares with proceeds to be utilized to acquire material assets. The Plan on Non-public Issue of A shares in 2016 was considered and approved by the Board of the Company. Based on the due diligence, audit, assessment and business negation with intermediates, taking into account the conditions of capital market and actual conditions of the Company, the Board of the Company considered and approved the Proposal Relating to Adjusting the Plan of non-public of A Shares, the Explanation on non-public of A-shares for year of 2016 Amendment, the Plan on Non-public Issue of A shares in 2016 (amended), the Plan on Non-public Issue of A shares in 2016 (Second Amended) and Plan on Non-public Issue of A shares in 2016 (Third Amended) from February 2017 to February 2018. and on 13 Feb. 2018, the Plan on Non-public Issue of A Shares (Third Amended) was deliberated and approved by First Extraordinary Shareholders General Meeting of 2018. According to the three revised drafts, the number of non-public offering of shares should not exceed 110,269,586 shares, and the total amount of funds raised should not exceed 750 million Yuan. The total amount of raised funds for this non-public offering should not exceed RMB 750 million, will be used for the following projects after deducting the issuance expenses: 1. RMB 680 million of funds for “online and offline marketing network platform construction and upgrading project”; 2. RMB 70 million of funds for “R & D center construction project”. The issuing objects of this non-public offering include four specific investors which are 8 Ruian Information, Zhisheng High-tech, Wansheng Industry and Beier High-tech. The subscription amount of Ruian Information does not exceed 250 million Yuan, and the number of subscribed shares does not exceed 36,756,529 shares; the subscription amount of Zhisheng High-tech does not exceed 200 million Yuan, and the number of subscribed shares does not exceed 29,405,223 shares; the subscription amount of Wansheng Industry and Beier High-tech respectively does not exceed 150 million Yuan, and the number of subscribed shares does not exceed 22,053,917 shares respectively. See details on the announcement issued by the board of directors of the company. 2. Foreign investment for controlling subsidiary On 12 August 2019, the Notice on Foreign Investment was deliberated and approved by the 14th Session th (extraordinary) of 10 BOD, it is agreed to setting up Shenzhen XinSen Jewelry& Gold Supply Chain Co., Ltd. with Shenzhen Zuan Jin Sen Jewelry Co., ltd, the Company contribute 4.225 million Yuan while 2.275 million Yuan invested by Zuan Jin Sen Jewelry. After the business registration, the Company comes to the controlling shareholder of XinSen Jewelry& Gold for holding 65% equity. Information index for temporary report Overview Date for disclosure disclosure Resolution of the 14th Session Juchao Website http://www.cninfo.com.cn th 2019-08-12 (extraordinary) of 10 BOD Notice No.: 2019-015 Juchao Website http://www.cninfo.com.cn Notice on Foreign Investment 2019-08-12 Notice No.: 2019-016 Progress of shares buy-back □Applicable √Not applicable Implementation progress of the reduction of repurchases shares by centralized bidding □Applicable √Not applicable III. Commitments that the actual controller, shareholde rs, 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 reporting period and have not yet fulfilled by the end of reporting period. IV. Particular about security investment □ Applicable √ Not applicable The Company had no security investment in Period. 9 V. Trust financing □ Applicable √ Not applicable The Company had no trust financing in Period. VI. Particulars about de rivatives investment □ Applicable √ Not applicable The Company had no derivatives investment in Period. VII. Registration form of receiving research, communication and intervie w in the report period √ Applicable □Not applicable Time Way Type Basic situation index of investigation Progress of privately placement of shares July – September 2019 Telephone communication Individual consulting July – September 2019 Telephone communication Individual Recombination consulting VIII. Guarantee outside against the regulation □Applicable √Not applicable The Company had no guarantee outside against the regulation in the period. IX. Non-ope rational 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 Section IV. Financial Statement I. Financial state ment 1. Consolidate balance sheet Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIM ITED 2019-09-30 In RM B Item 2019-9-30 2018-12-31 Current assets: M onetary funds 8,670,156.44 18,488,886.26 Settlement provisions Capital lent Tradable financial assets Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Note receivable 450,000.00 Account receivable 40,943,384.51 29,007,509.02 Receivable financing Accounts paid in advance 1,693,512.99 13,799,753.60 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other account receivable 1,079,351.23 844,537.19 Including: Interest receivable Dividend receivable Buying back the sale of financial assets Inventories 3,456,156.95 2,386,603.94 Contractual assets Assets held for sale 11 Non-current asset due within one year Other current assets 5,607,025.86 2,266,241.66 Total current assets 61,899,587.98 66,793,531.67 Non-current assets: Loans and payments on behalf Debt investment Finance asset available for sales Other debt investment Held-to-maturity investment Long-term account receivable Long-term equity investment Investment in other equity instrument Other non-current financial assets Investment real estate Fixed assets 4,289,622.16 3,502,807.32 Construction in progress Productive biological asset Oil and gas asset Right-of-use assets Intangible assets 941,250.00 1,506,000.00 Expense on Research and Development Goodwill Long-term expenses to be apportioned Deferred income tax asset 1,044,773.54 1,040,621.18 Other non-current asset 400,000.00 400,000.00 Total non-current asset 6,675,645.70 6,449,428.50 Total assets 68,575,233.68 73,242,960.17 Current liabilities: Short-term loans Loan from central bank Capital borrowed 12 Tradable financial liability Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Note payable 2,000,000.00 Account payable 9,206,474.40 9,979,010.69 Accounts received in advance 3,260,235.62 405,779.88 Contractual liability Selling financial asset of repurchase Absorbing deposit and inter-bank deposit Security trading of agency Security sales of agency Wage payable 524,073.65 435,736.16 Taxes payable 177,634.33 6,297,096.28 Other account payable 38,466,976.88 37,144,872.42 Including: Interest payable Dividend payable Commission charge and commission payable Reinsurance payable Liability held for sale Non-current liabilities due within one year Other current liabilities Total current liabilities 51,635,394.88 56,262,495.43 Non-current liabilities: Insurance contract reserve Long-term loans Bonds payable Including: Preferred stock Perpetual capital securities Lease liability 13 Long-term account payable Long-term wages payable Accrual liability Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 51,635,394.88 56,262,495.43 Owner’s equity: Share capital 551,347,947.00 551,347,947.00 Other equity instrument Including: Preferred stock Perpetual capital securities Capital public reserve 627,834,297.85 627,834,297.85 Less: Inventory shares Other comprehensive income Reasonable reserve Surplus public reserve 32,673,227.01 32,673,227.01 Provision of general risk Retained profit -1,197,307,966.33 -1,197,549,169.92 Total owner’ s equity attributable to 14,547,505.53 14,306,301.94 parent company M inority interests 2,392,333.27 2,674,162.80 Total owner’ s equity 16,939,838.80 16,980,464.74 Total liabilities and owner’ s equity 68,575,233.68 73,242,960.17 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 RM B Item 2019-9-30 2018-12-31 14 Current assets: M onetary funds 3,914,027.09 8,889,572.73 Tradable financial assets Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Note receivable 450,000.00 Account receivable 32,679,756.92 12,827,954.16 Receivable financing Accounts paid in advance 1,693,512.99 13,798,452.48 Other account receivable 794,803.74 380,925.78 Including: Interest receivable Dividend receivable Inventories 1,373,831.01 Contractual assets Assets held for sale Non-current assets maturing within one year Other current assets 5,120,447.47 2,130,677.11 Total current assets 46,026,379.22 38,027,582.26 Non-current assets: Debt investment Available-for-sale financial assets Other debt investment Held-to-maturity investments Long-term receivables Long-term equity investments 10,379.73 10,379.73 Investment in other equity instrument Other non-current financial assets Investment real estate Fixed assets 3,879,544.33 2,995,407.48 Construction in progress Productive biological assets 15 Oil and natural gas assets Right-of-use assets Intangible assets 941,250.00 1,506,000.00 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 5,231,174.06 4,911,787.21 Total assets 51,257,553.28 42,939,369.47 Current liabilities: Short-term borrowings Tradable financial liability Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable Account payable 7,718,753.63 Accounts received in advance 2,936,517.50 327,632.18 Contractual liability Wage payable 498,844.68 151,598.60 Taxes payable 177,621.34 5,416,117.27 Other accounts payable 30,950,041.85 28,967,052.96 Including: Interest payable Dividend payable Liability held for sale Non-current liabilities due within one year Other current liabilities Total current liabilities 42,281,779.00 34,862,401.01 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock 16 Perpetual capital securities Lease liability Long-term account payable Long term employee compensation payable Accrued liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 42,281,779.00 34,862,401.01 Owners’ 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 Special reserve Surplus reserve 32,673,227.01 32,673,227.01 Retained profit -1,202,879,697.58 -1,203,778,503.40 Total owner’s equity 8,975,774.28 8,076,968.46 Total liabilities and owner’s equity 51,257,553.28 42,939,369.47 3. Consolidated Profit Statement (the period) In RM B Item Current Period Last Period I. Total operating income 24,574,484.81 33,515,376.48 Including: Operating income 24,574,484.81 33,515,376.48 Interest income Insurance gained Commission charge and 17 commission income II. Total operating cost 23,520,413.16 32,908,232.08 Including: Operating cost 22,117,248.45 29,794,322.66 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 Tax and extras 16,205.37 58,517.27 Sales expense 501,593.81 1,600,868.52 Administrative expense 903,784.92 1,495,548.79 R&D expense Financial expense -18,419.39 -41,025.16 Including: Interest expenses Interest income -21,353.21 -46,157.13 Add: other income Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) Exchange income (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Income from change of fair value (Loss is listed with “-”) Loss of credit impairment (Loss is listed with “-”) 18 Losses of devaluation of asset 141,486.00 (Loss is listed with “-”) Income from assets disposal (Loss is listed with “-”) III. Operating profit (Loss is listed with 1,054,071.65 748,630.40 “-”) Add: Non-operating income 134,302.20 Less: Non-operating expense IV. Total profit (Loss is listed with “-”) 1,054,071.65 882,932.60 Less: Income tax expense 4,239.24 138,597.70 V. Net profit (Net loss is listed with “-”) 1,049,832.41 744,334.90 (i) Classify by business continuity 1.continuous operating net profit 1,049,832.41 744,334.90 (net loss listed with ‘-”) 2.termination of net profit (net loss listed with ‘-”) (ii) Classify by ownership 1.Net profit attributable to owner’s 1,040,149.76 530,513.93 of parent company 2.M inority shareholders’ gains and 9,682.65 213,820.97 losses VI. Net after-tax of other comprehensive income Net after-tax of other comprehensive income attributable to owners of parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 19 5. Other (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.gain/loss of fair value changes for available-for-sale financial assets 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 8.Translation differences arising on translation of foreign currency financial statements 9.Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 1,049,832.41 744,334.90 Total comprehensive income 1,040,149.76 530,513.93 attributable to owners of parent Company Total comprehensive income 9,682.65 213,820.97 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.0019 0.0010 (ii) Diluted earnings per share 0.0019 0.0010 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. 20 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 RM B Item Current Period Last Period I. Operating income 23,846,952.19 10,688,994.67 Less: Operating cost 21,876,322.80 9,514,999.72 Taxes and surcharge 14,493.03 6,781.40 Sales expenses 181,717.02 362,220.29 Administration expenses 760,518.90 924,928.15 R&D expenses Financial expenses -7,895.71 -27,763.78 Including: interest expenses Interest income -10,066.75 -29,407.01 Add: other income Investment income (Loss is listed with “-”) Including: Investment income on affiliated Company and joint venture The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Changing income of fair value (Loss is listed with “-”) Loss of credit impairment (Loss is listed with “-”) Losses of devaluation of asset (Loss is listed with “-”) Income on disposal of assets (Loss is listed with “-”) 21 II. Operating profit (Loss is listed with 1,021,796.15 -92,171.11 “-”) Add: Non-operating income 134,302.20 Less: Non-operating expense III. Total Profit (Loss is listed with “-”) 1,021,796.15 42,131.09 Less: Income tax 4,239.24 10,532.77 IV. Net profit (Net loss is listed with 1,017,556.91 31,598.32 “-”) (i)continuous operating net profit 1,017,556.91 31,598.32 (net loss listed with ‘-”) (ii) termination of net profit (net loss listed with ‘-”) V. Net after-tax of other comprehensive income (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (II) Other comprehensive income items which will be reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.gain/loss of fair value changes for available-for-sale financial assets 22 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 8.Translation differences arising on translation of foreign currency financial statements 9.Other VI. Total comprehensive income 1,017,556.91 31,598.32 VII. Earnings per share: (i) Basic earnings per share (ii) Diluted earnings per share 5. Consolidated Profit Statement (form the year-begin to the period-end) In RM B Item Current Period Last Period I. Total operating income 62,848,917.83 101,250,275.83 Including: Operating income 62,848,917.83 101,250,275.83 Interest income Insurance gained Commission charge and commission income II. Total operating cost 63,061,170.36 99,952,848.12 Including: Operating cost 57,446,763.42 90,958,528.99 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation 23 Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Tax and extras 52,793.14 134,255.02 Sales expense 2,377,317.42 4,356,796.05 Administrative expense 3,263,168.76 4,805,269.03 R&D expense Financial expense -78,872.38 -302,000.97 Including: Interest expenses Interest income -92,487.61 -318,843.06 Add: other income Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) Exchange income (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Income from change of fair value (Loss is listed with “-”) Loss of credit impairment -17,479.82 134,266.80 (Loss is listed with “-”) Losses of devaluation of asset 40,616.29 (Loss is listed with “-”) Income from assets disposal (Loss is listed with “-”) III. Operating profit (Loss is listed with -189,116.06 1,431,694.51 “-”) Add: Non-operating income 148,627.00 206,428.48 Less: Non-operating expense 50.00 30,140.00 IV. Total profit (Loss is listed with “-”) -40,539.06 1,607,982.99 Less: Income tax expense 86.88 371,731.68 24 V. Net profit (Net loss is listed with “-”) -40,625.94 1,236,251.31 (i) Classify by business continuity 1.continuous operating net profit -40,625.94 1,236,251.31 (net loss listed with ‘-”) 2.termination of net profit (net loss listed with ‘-”) (ii) Classify by ownership 1.Net profit attributable to owner’s 241,203.59 1,084,675.99 of parent company 2.M inority shareholders’ gains and -281,829.53 151,575.32 losses VI. Net after-tax of other comprehensive income Net after-tax of other comprehensive income attributable to owners of parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.gain/loss of fair value changes for available-for-sale financial 25 assets 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 8.Translation differences arising on translation of foreign currency financial statements 9.Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income -40,625.94 1,236,251.31 Total comprehensive income 241,203.59 1,084,675.99 attributable to owners of parent Company Total comprehensive income -281,829.53 151,575.32 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.0004 0.0020 (ii) Diluted earnings per share 0.0004 0.0020 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 6. Profit Statement of Parent Company (form the year-begin to the period-end) In RM B Item Current Period Last Period I. Operating income 49,251,331.03 34,712,513.35 26 Less: Operating cost 45,546,345.42 30,361,217.80 Taxes and surcharge 28,687.93 20,522.60 Sales expenses 421,822.61 639,048.04 Administration expenses 2,482,012.78 3,032,240.65 R&D expenses Financial expenses -21,478.79 -110,767.09 Including: interest expenses Interest income -28,564.59 -117,315.67 Add: other income Investment income (Loss is listed with “-”) Including: Investment income on affiliated Company and joint venture The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Changing income of fair value (Loss is listed with “-”) Loss of credit impairment -39,523.02 2,008.04 (Loss is listed with “-”) Losses of devaluation of asset (Loss is listed with “-”) Income on disposal of assets (Loss is listed with “-”) II. Operating profit (Loss is listed with 754,418.06 772,259.39 “-”) Add: Non-operating income 148,627.00 202,407.61 Less: Non-operating expense III. Total Profit (Loss is listed with “-”) 903,045.06 974,667.00 Less: Income tax 4,239.24 243,666.75 IV. Net profit (Net loss is listed with 898,805.82 731,000.25 “-”) (i)continuous operating net profit 898,805.82 731,000.25 (net loss listed with ‘-”) 27 (ii) termination of net profit (net loss listed with ‘-”) V. Net after-tax of other comprehensive income (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (II) Other comprehensive income items which will be reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.gain/loss of fair value changes for available-for-sale financial assets 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 28 8.Translation differences arising on translation of foreign currency financial statements 9.Other VI. Total comprehensive income 898,805.82 731,000.25 VII. Earnings per share: (i) Basic earnings per share (ii) Diluted earnings per share 7. Consolidated Cash Flow Statement (form the year-begin to the period-end) In RM B Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor 21,832,549.34 27,803,003.29 services Net increase of customer deposit and inter-bank deposit Net increase of loan from central bank Net increase of capital borrowed from other financial institution Cash received from original insurance contract fee Net cash received from reinsurance business Net increase of insured savings and investment Cash received from interest, commission charge and commission Net increase of capital borrowed Net increase of returned business capital Net cash received by agents in sale and purchase of securities Write-back of tax received 395,675.25 5,306.26 29 Other cash received concerning 6,635,811.81 3,457,816.24 operating activities Subtotal of cash inflow arising from 28,864,036.40 31,266,125.79 operating activities Cash paid for purchasing commodities and receiving labor 17,969,329.91 17,197,123.51 service Net increase of customer loans and advances Net increase of deposits in central bank and inter-bank Cash paid for original insurance contract compensation Net increase of capital lent Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 4,520,269.65 4,950,664.94 Taxes paid 5,591,830.87 2,100,451.20 Other cash paid concerning 8,100,278.65 6,895,677.18 operating activities Subtotal of cash outflow arising from 36,181,709.08 31,143,916.83 operating activities Net cash flows arising from operating -7,317,672.68 122,208.96 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 30 investing activities Subtotal of cash inflow from investing activities Cash paid for purchasing fixed, 534,494.04 17,293.82 intangible and other long-term assets Cash paid for investment Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities Subtotal of cash outflow from investing 534,494.04 17,293.82 activities Net cash flows arising from investing -534,494.04 -17,293.82 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 Other cash received concerning 4,033,436.90 financing activities Subtotal of cash inflow from financing 4,033,436.90 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 4,000,000.00 financing activities Subtotal of cash outflow from financing 4,000,000.00 activities Net cash flows arising from financing 33,436.90 31 activities IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash -7,818,729.82 104,915.14 equivalents Add: Balance of cash and cash 16,488,886.26 19,177,276.18 equivalents at the period -begin VI. Balance of cash and cash 8,670,156.44 19,282,191.32 equivalents at the period -end 8. Cash Flow Statement of Parent Company (form the year-begin to the period-end) In RM B Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor 13,142,364.00 16,434.00 services Write-back of tax received 395,675.25 5,306.26 Other cash received concerning 7,878,727.75 3,153,882.61 operating activities Subtotal of cash inflow arising from 21,416,767.00 3,175,622.87 operating activities Cash paid for purchasing commodities and receiving labor 11,560,353.60 46,278.04 service Cash paid to/for staff and workers 2,793,627.51 2,152,516.83 Taxes paid 5,392,327.74 1,071,443.86 Other cash paid concerning 6,111,509.75 6,396,936.25 operating activities Subtotal of cash outflow arising from 25,857,818.60 9,667,174.98 operating activities Net cash flows arising from operating -4,441,051.60 -6,491,552.11 activities II. Cash flows arising from investing activities: Cash received from recovering 32 investment Cash received from investment income Net cash received from disposal of fixed, intangible and other long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities Cash paid for purchasing fixed, 534,494.04 11,844.82 intangible and other long-term assets Cash paid for investment Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities Subtotal of cash outflow from investing 534,494.04 11,844.82 activities Net cash flows arising from investing -534,494.04 -11,844.82 activities III. Cash flows arising from financing activities: Cash received from absorbing investment Cash received from loans Other cash received concerning financing activities Subtotal of cash inflow from financing activities Cash paid for settling debts Cash paid for dividend and profit distributing or interest paying Other cash paid concerning financing activities Subtotal of cash outflow from financing 33 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 -4,975,545.64 -6,503,396.93 equivalents Add: Balance of cash and cash 8,889,572.73 15,398,405.80 equivalents at the period -begin VI. Balance of cash and cash 3,914,027.09 8,895,008.87 equivalents at the period -end II. Financial statement adjustment 1. Relevant items of the financial statement at beginning of the year when implementing the new financial instrument standards, new revenue standards or new leasing standards since 2019 □ Applicable √ Not applicable 2. Explanation on comparative data in the early stage of retroactive adjustment while implemented the new financial instrument standards or new leasing standards since 2019 □ Applicable √ Not applicable III. 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. Board of Directors of Shenzhen China Bicycle Company (Holdings) Limited 29 October 2019 34