THE THIRD QUARTERLY REPORT FOR 2018
Shenzhen Zhongheng Huafa Co., Ltd.
THE THIRD QUARTERLY REPORT FOR 2018
October 2018
1
THE THIRD QUARTERLY REPORT FOR 2018
Section I. Important Notes
Board of Directors and the Supervisory Committee of Shenzhen Zhongheng
Huafa Co., Ltd. (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 Zhongqiu, Person in Charge of Accounting Works
Yang Bin and Person in Charge of Accounting Organ (Accounting Officer) Wu
Aijie hereby confirm that the Financial Report of the Third Quarterly Report is
authentic, accurate and complete.
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THE THIRD QUARTERLY REPORT FOR 2018
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) 610,025,600.37 629,762,731.38 -3.13%
Net assets attributable to
shareholders of listed company 321,170,473.10 320,672,978.02 0.16%
(RMB)
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 (RMB) 148,975,383.05 -36.03% 489,960,226.29 -27.13%
Net profit attributable to
shareholders of the listed company -2,500,879.50 -39.09% 497,495.08 42.80%
(RMB)
Net profit attributable to
shareholders of the listed company
-3,406,233.82 -0.89% -1,352,766.80 -28.76%
after deducting non-recurring gains
and losses (RMB)
Net cash flow arising from
-- -- -54,036,421.68 -240.71%
operating activities (RMB)
Basic earnings per share
-0.0088 37.50% 0.0018 50.00%
(RMB/Share)
Diluted earnings per share
-0.0088 37.50% 0.0018 50.00%
(RMB/Share)
Weighted average ROE -0.78% -0.22% 0.16% 0.05%
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
Amount from year-begin to
Item Note
end of the Period
Gains/losses from the disposal of non-current asset (including the
-151,337.27
write-off that accrued for impairment of assets)
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THE THIRD QUARTERLY REPORT FOR 2018
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
1,606,800.00
national standards, which are closely relevant to enterprise’s
business)
Gains and losses from assets under trusted investment or
293,005.35
management
Other non-operating income and expenditure except for the
408,564.72
aforementioned items
Less: impact on income tax 306,770.92
Total 1,850,261.88 --
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. Total number of common shareholders at the end of this report period and top ten common shareholders
In Share
Total preference shareholders
Total common stock shareholders in with voting rights recovered at
26,534 0
reporting period-end 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
Wuhan Pledged 116,100,000
Zhongheng New
Domestic
Science &
non-state-owned 41.14% 116,489,894 0
Technology Frozen 116,489,894
legal person
Industrial Group
Co., Ltd.
SEG (HONG Overseas legal Pledged 0
5.85% 16,569,560 0
KONG) CO., person Frozen 0
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THE THIRD QUARTERLY REPORT FOR 2018
LTD.
GOOD HOPE Pledged 0
CORNER Overseas legal
4.49% 12,700,000 0
INVESTMENTS person Frozen 0
LTD
Changjiang Pledged 0
Securities
Overseas legal
Brokerage 1.89% 5,355,249 0
person Frozen 0
(Hongkong) Co.,
Ltd.
Guoyuan Pledged 0
Securities Overseas legal
1.36% 3,845,117 0
Brokerage (Hong person Frozen 0
Kong) Co., Ltd.
Domestic nature Pledged 0
Li Senzhuang 0.37% 1,046,360 0
person Frozen 0
LI SHERYN Overseas nature Pledged 0
0.36% 1,015,600 0
ZHAN MING person Frozen 0
Domestic nature Pledged 0
Han Yaming 0.31% 864,200 0
person Frozen 0
Overseas nature Pledged 0
BINGHUA LIU 0.30% 840,313 0
person Frozen 0
Domestic nature Pledged 0
Wu Jingmin 0.28% 788,152 0
person Frozen 0
Particular about top ten shareholders with un-restrict shares held
Type of shares
Shareholders Amount of un-restrict shares held
Type Amount
Wuhan Zhongheng New Science &
RMB ordinary
Technology Industrial Group Co., 116,489,894 116,489,894
shares
Ltd.
Domestically
SEG (HONG KONG) CO., LTD. 16,569,560 listed foreign 16,569,560
shares
Domestically
GOOD HOPE CORNER
12,700,000 listed foreign 12,700,000
INVESTMENTS LTD
shares
Changjiang Securities Brokerage Domestically
5,355,249 5,355,249
(Hongkong) Co., Ltd. listed foreign
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THE THIRD QUARTERLY REPORT FOR 2018
shares
Domestically
Guoyuan Securities Brokerage
3,845,117 listed foreign 3,845,117
(Hong Kong) Co., Ltd.
shares
Domestically
Li Senzhuang 1,046,360 listed foreign 1,046,360
shares
Domestically
LI SHERYN ZHAN MING 1,015,600 listed foreign 1,015,600
shares
Domestically
Han Yaming 864,200 listed foreign 864,200
shares
Domestically
BINGHUA LIU 840,313 listed foreign 840,313
shares
RMB ordinary
Wu Jingmin 788,152 788,152
shares
Among the shareholders, Wuhan Zhongheng Group neither bears associated relationship with
other shareholders, nor belongs to the consistent actor that are prescribed in Measures for the
Explanation on associated
Administration of Disclosure of Shareholder Equity Changes of Listed Companies. The
relationship among the top ten
Company neither knew whether there exists associated relationship among the other tradable
shareholders or consistent action
shareholders, nor they belong to consistent actors that are prescribed in Measures for the
Administration of Disclosure of Shareholder Equity Changes of Listed Companies.
Explanation on shareholders
involving margin business about top
N/A
ten common shareholders (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
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in
reporting period
2. Total of shareholders with preferred stock held and the top ten shareholdings
□Applicable √Not applicable
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THE THIRD QUARTERLY REPORT FOR 2018
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
Item 2018-9-30 2018-1-1 Y-o-y
changes Reasons
Monetary Fund 12,003,876.54 68,812,495.97 -82.56% Sales declined, and the returned money
decreased
Advance payment 49,172,569.56 943,328.01 5112.67% Account repaid for mateirals in the period
Construction in process 5,888,698.84 654,356.00 799.92% Workshop construction increased in the period
Y-o-y
Item Jan. to Sept. 2018 Jan. to Sept. 2017 changes Reasons
Financial expenses 5,216,790.23 9,191,587.68 -43.24% Exchange gain increased in the period
Assets impairment loss 5,941.50 -93,425.39 106.36% Bad debt of last period switch back
Investment income 293,005.35 - Income from bank financing
Assets disposal income -151,337.27 -31,321.94 -383.17% Aged procdution equipment replaced
Non operating income 1,413,171.48 3,052,612.99 -53.71% At same period last year, 1.38 million yuan
accrual liability reverse from Shaanxi Linghua
Non operating expenses 182,806.76 24,775.13 637.86% Fine for tax overdue
Income tax expense 490,059.24 1,135,130.69 -56.83% The tax rate for high-tech enterprise declined
Y-o-y
Item Jan. to Sept. 2018 Jan. to Sept. 2017 changes Reasons
Cash received from 119,000,000.00 - Financial products redemption
returns of investments
Cash received from 293,005.35 - Income from financial products
recovering investment
Net cash received from 967,002.00 75,901.58 1174.02% Aged procdution equipment replaced
disposal of fixed assets,
intangible assets and other
long-term assts
Cash paid for purchasing 10,633,271.22 5,334,290.23 99.34% Investment for new workshop, and purchased
fixed, intangible and other prodcution equipment
long-term assets
Cash paid for investment 119,000,000.00 - Purchased financial products
Cash received from loans 319,218,464.59 236,663,522.53 34.88% Short-term loans increased in the period
Cash paid for debt 315,712,397.89 237,673,502.22 32.83% Payment of short-term loans in the period
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THE THIRD QUARTERLY REPORT FOR 2018
payment
Impact on cash or cash -117,560.33 -858,969.48 86.31% Impact by foreign exchange fluctuation in the
equivalent from change of period
foreign exchange
II. Progress of significant events, their influences, and analysis and explanation of their
solutions
√ Applicable □Not applicable
(I) The Company signed Asset Exchange Contract with Wuhan Zhongheng Group on 29 April 2009 (details were referred to in the
announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of the Company (namely two parcel of
industrial lands located at Huafa road, Gongming town, Guangming new district, Shenzhen (the property certificate No. were SFDZ
No.7226760 and SFDZ No.7226763, No. of parcels were A627-005 andA627-007, and the aggregate area was 48,200 sq.m) were the
lands listed in the first batch of plan for 2010 Shenzhen urbanization unit planning preparation plan. For promotion of such
urbanization project and joint cooperation, the Company has not completed the transfer procedures in respect of the aforesaid land.
The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the first extraordinary general
meeting of the Board in 2015 on March 4, 2015, which considered and approved the “Motion on promoting and implementing the
urban renewal project for the renewal units of Huafa area at Gongming street, Guangming new district, Shenzhen”, specified that the
Company and Wuhan Zhongheng Group shall obtain the corresponding compensatory consideration for removal from the
respectively owned project plots and the respectively contributed and constructed above-ground buildings before the land
development, it is estimated that the compensatory consideration obtained by the Company accounts for 50.5% of the total
consideration and Wuhan Zhongheng Group accounts for 49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting held on September 11,
2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewal and the progress of
related transactions of ‘the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen’”, the company has
signed the “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area, Gong Ming Street,
Guangming New District, Shenzhen”, “Contract for the cooperative venture of reconstruction project for Huafa Industrial Park, Gong
Ming Street, Guangming New District” and “Agreement on housing acquisition and removal compensation and resettlement” with
Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “Wuhan Zhongheng Group”), Shenzhen
Vanke Real Estate Co., Ltd. (hereinafter referred to as “Shenzhen Vanke”), and Shenzhen Vanke Guangming Real Estate
Development Co., Ltd. (hereinafter referred to as “Vanke Guangming”).
On 12 September 2016, the Company received a “Notice of Arbitration No.: SHEN DP20160334” from SCIA, Shenzhen Vanke
applied for arbitration in respect of “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area,
Gong Ming Street, Guangming New District, Shenzhen” against the Company and Wuhan Zhongheng Group. The arbitral court
holds hearings on 12 November 2016 and 13 May 2017. Shenzhen International Court of Arbitration (South China International
Economic and Trade Arbitration Commission) has made a rule in August 2017, and the Company application for withdrawal to
Shenzhen Intermediate People’s Court in February 2018, the Court made a judgment on 16 August 2018 for dismissed the
Company’s claim. And on 29 August 2018, the Court accepted the application for enforement of Shenzhen Vanke, recently, the
controlling shareholder is actively communicate with relevant parties for solutions. Progress of the case found more in the Notices
released on Juchao website (www.cninfo.com.cn) dated 14 Sept. 2016, 1 Nov. 2016, 16 Nov. 2016, on 18 Feb. 2017, 24 March 2017,
25 April 2017, 1 July 2017, 18 August 2017, 9 Feb. 2018, 25 Aug. 2018 and on 7 Sept. 2108 respectively.
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THE THIRD QUARTERLY REPORT FOR 2018
(II) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to China Merchants Securities
Assets Co., Ltd. with due date of 31 December 2016. Wuhan Zhongheng Group deferred the repurchase business day to 31
December 2017. And on 1 Feb. 2016, Wuhan Zhongheng Group pledge the 27,349,953 shares held to China Merchants Securities
Assets Co., Ltd. with due date of 31 December 2016. And also deferring the repurchase business, deadline for pledge on 31
December 2017. The day for repurchase transaction is postponed until the date when lifting the pledge actually. Ended as the
reporting period, the pledge has not yet been lifted and we has inquiry on controlling shareholders and issued the Suggestive
Announcement on Share Pledge of Controlling Shareholders. Found more in notice released on Juchao website (www.cninfo.com.cn)
dated 2 Feb. 2018.
(III) Our controlling shareholder Wuhan Zhongheng Group holds 116,489,894 shares of the Company, accounting for 41.14% of total
share capital, and the above shares were judicially sealed on 27 September 2016 for creditor’s application for property preservation.
Assets frozen from 27 September 2016 to 13 September 2021. Details are set out in the announcement published at Juchao
information website (www.cninfo.com.cn) on 27 October 2016.
(IV) On March 21, 2014, Huafa Property and Shenzhen Jifang Investment Co., Ltd. (hereinafter referred to as "Jifang Investment")
signed the "Shenzhen Housing Leasing Contract" and the "Supplemental Agreement on Leasing Contract", which were canceled on
February 5, 2016. As Jifang Investment occupied the site, and defaulted rent, management fee and water and electricity bills in the
long term, in order to safeguard the legitimate rights and interests, Huafa Property submitted a request for arbitration to Shenzhen
Arbitration Commission on March 8, 2016, and received the (2016) SZCZ No. 346 ruling paper from Shenzhen Arbitration
Commission in November 2016 which ruled Huafa Property won the lawsuit. See details on the notice published at
www.cninfo.com.cn by the Company on November 8, 2016. The sites taken by Jifang have been collected in May 2018.
(V) Increasing Commitment from Majority Shareholdes
On 20 Nov. 2017 and 28 Nov. repsectively, controlling shareholder made a committement of share increasing as holding more 2.83
million B-stock and no more than 2.8 million A-stock of the Company. The commitment term is six month, latter, the controlling
shareholder application for extension for another six months to fulfill the commitments. The commitment still in terms ended as the
reporting period without fulfill.
(VI) Director and deputy Chairman Mr. Zhang Guangliu resigned as director, deputy chairman and member of the committee of the
Board for work transfer. After nominated by second largest shareholder SEG (HONG KONG) CO., LTD., Mr. Gao Jianbo was
elected as the director of 9th BOD, office term same as this BOD.
Information index for temporary report
Overview Date for disclosure
disclosure
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
There are 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.
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THE THIRD QUARTERLY REPORT FOR 2018
IV. Estimation of operation performance for year of 2018
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
V. Particular about security investment
□ Applicable √ Not applicable
The Company had no security investment in Period.
VI. Trust financing
□ Applicable √ Not applicable
The Company had no trust financing in Period.
VII. Particulars about derivatives investment
□ Applicable √ Not applicable
The Company had no derivatives investment in Period.
VIII. Registration form of receiving research, communication and interview in the report
period
√ Applicable □Not applicable
Date Method Type of investors Basic situation index of investigation
2018-07-02 Telephone communication Individual N/A
IX. Guarantee outside against the regulation
□Applicable √Not applicable
The Company has no external security against the rules in the Period.
X. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
There are no controlling shareholders' and its related party's non-business capital occupying of the listed company.
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THE THIRD QUARTERLY REPORT FOR 2018
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
2018-09-30
In RMB
Item Balance at period-end Balance at period-begin
Current assets:
Monetary funds 12,003,876.54 68,812,495.97
Settlement provisions
Capital lent
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
Notes receivable and accounts
211,163,762.48 213,574,264.91
receivable
Including: Notes receivable 72,688,735.59 64,778,266.65
Accounts receivable 138,475,026.89 148,795,998.26
Accounts paid in advance 49,172,569.56 943,328.01
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other receivables 3,529,002.00 4,335,729.72
Purchase restituted finance asset
Inventories 50,306,481.56 60,387,021.65
Assets held for sale
Non-current asset due within one
year
Other current assets 46,253.01 52,310.51
Total current assets 326,221,945.15 348,105,150.77
Non-current assets:
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THE THIRD QUARTERLY REPORT FOR 2018
Loans and payments on behalf
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment property 51,113,683.58 52,410,958.62
Fixed assets 176,591,396.65 176,477,314.08
Construction in progress 5,888,698.84 654,356.00
Productive biological asset
Oil and gas asset
Intangible assets 42,188,596.40 43,307,316.37
Expense on Research and
Development
Goodwill
Long-term expenses to be
704,367.47 141,666.55
apportioned
Deferred income tax asset 7,316,912.28 6,731,168.99
Other non-current asset 1,934,800.00
Total non-current asset 283,803,655.22 281,657,580.61
Total assets 610,025,600.37 629,762,731.38
Current liabilities:
Short-term loans 173,358,875.00 166,620,264.81
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 and accounts payable 74,347,459.13 101,815,141.01
Accounts received in advance 267,383.24 278,128.18
Selling financial asset of repurchase
Commission charge and
commission payable
Wage payable 4,046,925.82 5,083,357.93
Taxes payable 10,792,167.77 15,136,277.68
Other accounts payable 25,977,905.31 20,092,172.75
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THE THIRD QUARTERLY REPORT FOR 2018
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 288,790,716.27 309,025,342.36
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Projected liabilities 64,411.00 64,411.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 64,411.00 64,411.00
Total liabilities 288,855,127.27 309,089,753.36
Owner’s equity:
Share capital 283,161,227.00 283,161,227.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 146,587,271.50 146,587,271.50
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
Provision of general risk
Retained profit -185,969,618.65 -186,467,113.73
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THE THIRD QUARTERLY REPORT FOR 2018
Total owner’s equity attributable to
321,170,473.10 320,672,978.02
parent company
Minority interests
Total owner’s equity 321,170,473.10 320,672,978.02
Total liabilities and owner’s equity 610,025,600.37 629,762,731.38
Legal representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
2. Balance Sheet of Parent Company
In RMB
Item Balance at period-end Balance at period-begin
Current assets:
Monetary funds 5,448,418.01 25,181,764.87
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
Notes receivable and accounts
receivable
Including: Notes receivable
Accounts receivable
Account paid in advance 153,050.00
Other receivables 101,249,172.05 99,922,143.84
Inventories 14,806.50 14,806.50
Assets held for sale
Non-current assets maturing within
one year
Other current assets
Total current assets 106,865,446.56 125,118,715.21
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 186,608,900.00 186,608,900.00
Investment property 26,676,804.36 27,583,299.22
Fixed assets 96,333,932.87 99,678,839.27
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THE THIRD QUARTERLY REPORT FOR 2018
Construction in progress 1,172,756.00 654,356.00
Productive biological assets
Oil and natural gas assets
Intangible assets 4,734,891.39 4,843,600.68
Research and development costs
Goodwill
Long-term deferred expenses 104,166.52 141,666.55
Deferred income tax assets 8,106,508.57 7,519,546.71
Other non-current assets
Total non-current assets 323,737,959.71 327,030,208.43
Total assets 430,603,406.27 452,148,923.64
Current liabilities:
Short-term borrowings 104,000,000.00 120,000,000.00
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable and accounts payable 9,740,367.33 10,745,840.16
Accounts received in advance 48,000.96 67,210.00
Wage payable 815,885.20 1,039,196.20
Taxes payable 7,652,654.65 9,305,468.70
Other accounts payable 15,783,051.78 14,339,551.78
Liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 138,039,959.92 155,497,266.84
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable
Projected liabilities 64,411.00 64,411.00
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THE THIRD QUARTERLY REPORT FOR 2018
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 64,411.00 64,411.00
Total liabilities 138,104,370.92 155,561,677.84
Owners’ equity:
Share capita 283,161,227.00 283,161,227.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 146,587,271.50 146,587,271.50
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 77,391,593.25 77,391,593.25
Retained profit -214,641,056.40 -210,552,845.95
Total owner’s equity 292,499,035.35 296,587,245.80
Total liabilities and owner’s equity 430,603,406.27 452,148,923.64
3. Consolidated Profit Statement (the period)
In RMB
Item Current Period Last Period
I. Total operating income 148,975,383.05 232,880,839.08
Including: Operating income 148,975,383.05 232,880,839.08
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 152,547,071.49 236,371,692.83
Including: Operating cost 137,929,089.05 212,098,026.49
Interest expense
Commission charge and
commission expense
Cash surrender value
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THE THIRD QUARTERLY REPORT FOR 2018
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 874,827.13 1,009,748.31
Sales expenses 3,610,591.52 3,066,524.55
Administration expenses 10,353,738.68 14,587,407.58
R&D expenses
Financial expenses -230,279.99 4,276,697.22
Including: Interest expenses 3,060,716.74 3,541,921.60
Interest income -124,684.95 -794,663.73
Losses of devaluation of asset
Add: other income 785,000.00
Investment income (Loss is
47,326.25
listed with “-”)
Including: Investment income on
affiliated company and joint venture
Changing income of fair
value(Loss is listed with “-”)
Exchange income (Loss is listed
with “-”)
Income from assets disposal
-45,557.91 2,000.00
(Loss is listed with “-”)
III. Operating profit (Loss is listed
-2,784,920.10 -3,488,853.75
with “-”)
Add: Non-operating income 320,268.43 2,126,879.23
Less: Non-operating expense 10,000.00 24,724.25
IV. Total Profit (Loss is listed with
-2,474,651.67 -1,386,698.77
“-”)
Less: Income tax expense 26,227.83 411,383.78
V. Net profit (Net loss is listed with
-2,500,879.50 -1,798,082.55
“-”)
(i) net profit from continuous
-2,500,879.50 -1,798,082.55
operation (Net loss is listed with “-”)
(ii) net profit from discontinued
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THE THIRD QUARTERLY REPORT FOR 2018
operation (Net loss is listed with “-”)
Net profit attributable to owner’s
-2,500,879.50 -1,798,082.55
of parent company
Minority shareholders’ gains and
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 investment as
available-for-sale financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
18
THE THIRD QUARTERLY REPORT FOR 2018
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 -2,500,879.50 -1,798,082.55
Total comprehensive income
attributable to owners of parent -2,500,879.50 -1,798,082.55
Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.0088 -0.0064
(ii) Diluted earnings per share -0.0088 -0.0064
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 Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
4. Profit Statement of Parent Company (the period)
In RMB
Item Current Period Last Period
I. Operating income 7,401,531.71 9,405,098.50
Less: Operating cost 1,795,342.70 2,147,630.38
Operating tax and extras 267,744.93 706,427.28
Sales expenses 0.00
Administration expenses 5,251,598.46 6,986,976.11
R&D expenses
Financial expenses 2,318,899.00 -2,384,380.36
Including: Interest expenses 2,302,672.47 -2,377,134.62
Interest income -2,645.81 -7,365.50
Losses of devaluation of
0.00
asset
Add: other income
Investment income (Loss is 0.00
19
THE THIRD QUARTERLY REPORT FOR 2018
listed with “-”)
Including: Investment
income on affiliated company and
joint venture
Changing income of fair
value(Loss is listed with “-”)
Income from assets disposal
-26,592.13
(Loss is listed with “-”)
II. Operating profit (Loss is listed
-2,258,645.51 1,948,445.09
with “-”)
Add: Non-operating income 1,358,376.15
Less: Non-operating expense -18,873.12
III. Total Profit (Loss is listed with
-2,258,645.51 3,325,694.36
“-”)
Less: Income tax expense -14,661.37 1,515,349.97
IV. Net profit (Net loss is listed with
-2,243,984.14 1,810,344.39
“-”)
(i) net profit from continuous
-2,243,984.14 1,810,344.39
operation (Net loss is listed with “-”)
(ii) net profit from discontinued
operation (Net loss is 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 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
20
THE THIRD QUARTERLY REPORT FOR 2018
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 -2,243,984.14 1,810,344.39
VII. Earnings per share:
(i) Basic earnings per share -0.0079 0.0064
(ii) Diluted earnings per share -0.0079 0.0064
5. Consolidated Profit Statement (form the year-begin to the period-end)
In RMB
Item Current Period Last Period
I. Total operating income 489,960,226.29 672,360,983.25
Including: Operating income 489,960,226.29 672,360,983.25
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 491,129,704.77 673,873,979.03
Including: Operating cost 440,512,068.49 611,011,951.57
Interest expense
Commission charge and
commission expense
Cash surrender value
21
THE THIRD QUARTERLY REPORT FOR 2018
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 2,587,120.52 3,327,635.76
Sales expenses 12,053,059.93 11,762,865.09
Administration expenses 22,964,669.93 29,493,139.61
R&D expenses 7,790,054.17 9,180,224.71
Financial expenses 5,216,790.23 9,191,587.68
Including: Interest expenses 9,050,600.05 7,605,454.70
Interest income -474,543.54 -1,317,717.89
Losses of devaluation of asset 5,941.50 -93,425.39
Add: other income 785,000.00
Investment income (Loss is
293,005.35
listed with “-”)
Including: Investment income on
affiliated company and joint venture
Changing income of fair
value(Loss is listed with “-”)
Exchange income (Loss is listed
with “-”)
Income from assets disposal
-151,337.27 -31,321.94
(Loss is listed with “-”)
III. Operating profit (Loss is listed
-242,810.40 -1,544,317.72
with “-”)
Add: Non-operating income 1,413,171.48 3,052,612.99
Less: Non-operating expense 182,806.76 24,775.13
IV. Total Profit (Loss is listed with
987,554.32 1,483,520.14
“-”)
Less: Income tax expense 490,059.24 1,135,130.69
V. Net profit (Net loss is listed with
497,495.08 348,389.45
“-”)
(i) net profit from continuous
497,495.08 348,389.45
operation (Net loss is listed with “-”)
(ii) net profit from discontinued
22
THE THIRD QUARTERLY REPORT FOR 2018
operation (Net loss is listed with “-”)
Net profit attributable to owner’s
497,495.08 348,389.45
of parent company
Minority shareholders’ gains and
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 investment as
available-for-sale financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
23
THE THIRD QUARTERLY REPORT FOR 2018
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 497,495.08 348,389.45
Total comprehensive income
attributable to owners of parent 497,495.08 348,389.45
Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0018 0.0012
(ii) Diluted earnings per share 0.0018 0.0012
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 24,362,620.45 30,455,412.15
Less: Operating cost 4,305,861.52 4,325,514.67
Operating tax and extras 852,759.55 1,804,380.12
Sales expenses 0.00
Administration expenses 16,386,453.83 22,420,306.96
R&D expenses
Financial expenses 7,207,553.05 2,836,883.54
Including: Interest expenses 7,205,697.51 2,744,258.34
Interest income -24,668.47 -33,723.89
Losses of devaluation of
-93,425.39
asset
Add: other income 0.00
Investment income (Loss is
0.00
listed with “-”)
Including: Investment 0.00
24
THE THIRD QUARTERLY REPORT FOR 2018
income on affiliated company and
joint venture
Changing income of fair
value(Loss is listed with “-”)
Income from assets disposal
-26,592.13
(Loss is listed with “-”)
II. Operating profit (Loss is listed
-4,416,599.63 -838,247.75
with “-”)
Add: Non-operating income 1,399,915.15
Less: Non-operating expense 131,247.82 50.88
III. Total Profit (Loss is listed with
-4,547,847.45 561,616.52
“-”)
Less: Income tax expense -459,637.00 800,974.16
IV. Net profit (Net loss is listed with
-4,088,210.45 -239,357.64
“-”)
(i) net profit from continuous
-4,088,210.45 -239,357.64
operation (Net loss is listed with “-”)
(ii) net profit from discontinued
operation (Net loss is 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 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
25
THE THIRD QUARTERLY REPORT FOR 2018
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 -4,088,210.45 -239,357.64
VII. Earnings per share:
(i) Basic earnings per share -0.0144 -0.0008
(ii) Diluted earnings per share -0.0144 -0.0008
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 316,333,719.60 411,585,436.90
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
26
THE THIRD QUARTERLY REPORT FOR 2018
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
12,106,490.64 12,669,697.70
operating activities
Subtotal of cash inflow arising from
328,440,210.24 424,255,134.60
operating activities
Cash paid for purchasing
commodities and receiving labor 261,946,585.36 330,088,093.97
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
49,957,977.58 55,158,956.96
workers
Taxes paid 17,371,156.77 13,659,531.39
Other cash paid concerning
53,200,912.21 41,208,334.19
operating activities
Subtotal of cash outflow arising from
382,476,631.92 440,114,916.51
operating activities
Net cash flows arising from operating
-54,036,421.68 -15,859,781.91
activities
27
THE THIRD QUARTERLY REPORT FOR 2018
II. Cash flows arising from investing
activities:
Cash received from recovering
119,000,000.00
investment
Cash received from investment
293,005.35
income
Net cash received from disposal
of fixed, intangible and other 967,002.00 75,901.58
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from
120,260,007.35 75,901.58
investing activities
Cash paid for purchasing fixed,
10,633,271.22 5,334,290.23
intangible and other long-term assets
Cash paid for investment 119,000,000.00
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
129,633,271.22 5,334,290.23
investing activities
Net cash flows arising from investing
-9,373,263.87 -5,258,388.65
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 319,218,464.59 236,663,522.53
Cash received from issuing
bonds
Other cash received concerning
28
THE THIRD QUARTERLY REPORT FOR 2018
financing activities
Subtotal of cash inflow from
319,218,464.59 236,663,522.53
financing activities
Cash paid for settling debts 315,712,397.89 237,673,502.22
Cash paid for dividend and
7,630,076.84 7,522,719.08
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
323,342,474.73 245,196,221.30
financing activities
Net cash flows arising from financing
-4,124,010.14 -8,532,698.77
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -117,560.33 -858,969.48
exchange rate
V. Net increase of cash and cash
-67,651,256.02 -30,509,838.81
equivalents
Add: Balance of cash and cash
81,474,974.30 104,015,312.97
equivalents at the period -begin
VI. Balance of cash and cash
13,823,718.28 73,505,474.16
equivalents at the period -end
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 25,983,655.00 15,918,953.06
services
Write-back of tax received 0.00
Other cash received concerning
108,279,703.54 42,613,349.94
operating activities
Subtotal of cash inflow arising from
134,263,358.54 58,532,303.00
operating activities
29
THE THIRD QUARTERLY REPORT FOR 2018
Cash paid for purchasing
commodities and receiving labor
service
Cash paid to/for staff and
2,681,972.90 3,604,869.82
workers
Taxes paid 3,960,136.96 3,658,227.60
Other cash paid concerning
123,071,047.66 49,583,197.56
operating activities
Subtotal of cash outflow arising from
129,713,157.52 56,846,294.98
operating activities
Net cash flows arising from operating
4,550,201.02 1,686,008.02
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 82,000.00
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from
82,000.00
investing activities
Cash paid for purchasing fixed,
1,126,400.00 1,377,592.31
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
1,126,400.00 1,377,592.31
investing activities
Net cash flows arising from investing
-1,044,400.00 -1,377,592.31
activities
30
THE THIRD QUARTERLY REPORT FOR 2018
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 200,000,000.00 115,000,000.00
Cash received from issuing
bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
200,000,000.00 115,000,000.00
financing activities
Cash paid for settling debts 217,079,416.68 115,000,000.00
Cash paid for dividend and
6,161,298.54 5,450,633.34
profit distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from
223,240,715.22 120,450,633.34
financing activities
Net cash flows arising from financing
-23,240,715.22 -5,450,633.34
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 1,567.34 618.82
exchange rate
V. Net increase of cash and cash
-19,733,346.86 -5,141,598.81
equivalents
Add: Balance of cash and cash
25,181,764.87 10,375,152.87
equivalents at the period -begin
VI. Balance of cash and cash
5,448,418.01 5,233,554.06
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
