Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 April 2013 1 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Section I. Important Notes Board of Directors and the Supervisory Committee of Shenzhen Tellus Holding Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint. Zhang Ruili, Person in charge of the Company, Luo Bojun, person in charger of accounting works, CFO Fu Bin and Ke Wensheng, person in charger of accounting organ (accounting officer) hereby confirm that the Financial Report of this Quarterly Report is authentic, accurate and complete. All Directors are attended the Board Meeting for Quarterly Report deliberation. 2 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Section II. Main financial data and changes of shareholders I. Main financial data Whether has retroactive adjustment or re-statement on financial data of previous’ period in this report or not □Yes √ No Changes of this period over Jan. – March 2013 Jan. – March 2012 same period of last year (%) Operating income (RMB) 111,783,990.45 95,887,355.30 16.58% Net profit attributable to shareholders of 4,533,841.25 -2,215,133.02 the listed company(RMB) Net profit attributable to shareholders of the listed company after deducting -2,613,488.92 -2,209,157.83 non-recurring gains and losses(RMB) Net cash flow arising from operating -4,583,172.09 -15,234,783.72 activities(RMB) Basic earnings per share (RMB/Share) 0.0206 -0.0101 Diluted earnings per share (RMB/Share) 0.0206 -0.0101 Weighted average ROE (%) 2.43% -1.26% Changes of this period-end 2013-3-31 2012-12-31 over same period-end of last year (%) Total assets (RMB) 630,434,380.25 644,911,292.00 -2.24% Net assets attributable to shareholder of 189,079,574.86 184,675,401.61 2.38% listed company (RMB) Items of non-recurring gains and losses √ Applicable □ Not applicable Unit: RMB Amount from year-begin to Item Note period-end Including disposal income RMB 7,047,484.48 from selling the real Gains/losses from the disposal of non-current asset (including the estate from subsidiary Auto 7,207,310.35 write-off that accrued for impairment of assets) Industrial and Trading Company—9 sets of property locates in Dongfeng Building Other non-operating income and expenditure except for the 4,750.17 aforementioned items Impact on minority shareholders’ equity (post-tax) 64,730.35 3 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Total 7,147,330.17 -- II. Total number of shareholders at the end of this report period and top ten shareholders Unit: Share Total number of shareholders 16,747 at the end of report period Top ten shareholders Amount of Shareholder’s Nature of Proportion of Amount of shares Number of share pledged/frozen restricted shares name shareholder shares held (%) held State of share Amount held Shenzhen SDG State-owned legal 66.22% 145,870,560 14,587,056 Co., Ltd. person Domestic natural Wu Yongchun 0.42% 924,696 person Domestic natural Ling Fengyuan 0.23% 514,758 person Domestic natural Zeng Weimei 0.22% 488,896 person Domestic natural Xiang Furong 0.22% 480,001 person The First Shanghai Foreign legal 0.22% 479,177 Securities Co., person Ltd. Domestic natural Zhang Xiaoming 0.21% 463,961 person Domestic natural Li Taoran 0.2% 437,758 person Domestic natural Kan Hui 0.17% 369,126 person Domestic natural Wang Shaoying 0.15% 339,400 person Top ten shareholders with unrestricted shares held Type of shares Shareholder’s name Amount of unrestricted shares held Type Amount RMB ordinary Shenzhen SDG Co., Ltd. 131,283,504 131,283,504 shares RMB ordinary Wu Yongchun 924,696 924,696 shares Ling Fengyuan 514,758 Domestically 514,758 4 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) listed foreign shares RMB ordinary Zeng Weimei 488,896 488,896 shares RMB ordinary Xiang Furong 480,001 480,001 shares Domestically The First Shanghai Securities Co., 479,177 listed foreign 479,177 Ltd. shares RMB ordinary Zhang Xiaoming 463,961 463,961 shares RMB ordinary Li Taoran 437,758 437,758 shares RMB ordinary Kan Hui 369,126 369,126 shares Domestically Wang Shaoying 339,400 listed foreign 339,400 shares Among the above the top ten shareholders, Shenzhen SDG Co., Ltd., shareholders of state-owned legal person’s share, exists no associated relationship with the other shareholders, Note of related relationship among and they don’t belong to the consistent actionist regulated by the Management Regulation of the above shareholders and Information Disclosure on Change of Shareholding for Listed Companies with the other concerted actors shareholders. It is unknown whether the other shareholders of circulation share belong to the consistent actionist or not. 5 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Section III. Significant Events I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons (I) Items of balance sheet 1. Advance payments increased 62.67% over that of period-begin, mainly due to the vehicle account paid in advance from subsidiary Shenzhen Huari Toyota Automobile Sales and Service Co., LTD to FAW Toyota Motor Sales Co., Ltd increased 2. Other account receivable increased 66.52% over that of period-begin, mainly because current account increased. 3. Notes payable increased RMB 6,513,591.24 over that of period-begin, mainly due to the newly added acceptance bill of China CITIC Bank from subsidiary Shenzhen Huari Toyota Automobile Sales and Service Co., LTD. 4. Account received in advance decreased 89.41% over that of period-begin, mainly because the carry-over income from sales of investment real estate was received in advance from subsidiary Shenzhen Automobile Industrial Trade General Corporation; the account of car sales received in advance at period-end decreased in Shenzhen Huari Toyota Automobile Sales and Service Co., LTD 5. Dividends payable decreased by 80.61% over that of period-begin, mainly because the dividend payable to foreign party has been paid by subsidiary Shenzhen Huari Toyota Automobile Sales and Service Co., LTD (II) Items of profit statement 1. Business tax and additional increased 30.21% over the same period of last year, mainly because RMB 508,300 business tax and additional increased due to the investment real estate sold by subsidiary Shenzhen Automobile Industrial Trade General Corporation. 2. Financial expense increased 68.43% over the same period of last year, mainly because the increase of the loans caused the increase of interest expenditure in the period. 3. Investment income decreased 36.83% over the same period of last year, mainly because the loss of joint-stock company Shenzhen Motors Ind., I/E Co. decreased. 4. Non-operating income increased 633.94% over the same period of last year, the non-operating income in this year mainly due to the income from disposal of non-current assets from subsidiary Shenzhen Tefa Huari Automobile Enterprise Co.,Ltd. 5. Non-operating expenditure decreased 81.69% over the same period of last year; disposal of non-current assets losses RMB 21,000 at same period of last year. 6. Income tax expenses decreased 76.61% over the same period of last year, mainly because the profit of the subsidiary Shenzhen Zhongtian Industrial Co., Ltd decreased. II. Analysis and explanation of significant events and their influence and solutions In the reporting, the 9th extraordinary meeting of 7th session of the board was held on January 8, 2013, deliberating and approving Proposal of Investment About “Tellus Shuibei Jewelry Building” Project (tentative name), which had been deliberated by the first 6 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) extraordinary shareholders’ general meeting of 2013. Related content can be found in No.2013-004 Notice of Investment Outside and No.2013-007 Resolution Notice of First extraordinary Shareholders’ General Meeting of 2013. Information index for temporary report Overview Date for disclosure disclosure In the reporting, the 9th extraordinary meeting of 7th session of the board was held on January 8, 2013, deliberating and approving Juchao Website: Proposal of Investment About “Tellus Shuibei 2013-01-09 http://www.cninfo.com.cn/ Jewelry Building” Project (tentative name). Related content can be found in No.2013-004 Notice of Investment Outside On January 24, 2013, the first extraordinary shareholders’ general meeting of 2013 was held for deliberating and approving Proposal of Investment About “Tellus Shuibei Jewelry Juchao Website: 2013-01-25 Building” Project (tentative name). Related http://www.cninfo.com.cn/ content can be found in No.2013-007 Resolution Notice of First extraordinary Shareholders’ General Meeting of 2013. III. Commitments make within the report period or persisted to the period by the Company or shareholder with over 5 percent shares held Impleme Item of Commitments Promisee Content of commitments Date Term ntation (I)SDG, the shareholder of non-circulating shares, made the following commitments during the work of Share Merger Reform of the Company:1.Commitments on Lock-up period:(1) In accordance with the Measures for the Administration of the Share Merger Reform of Listed Companies, SDG would abide by the various laws, regulations and rules, and perform its statutory commitment duty.(2)Apart from the Shenzhen above-mentioned statutory commitment, SDG also Commitments for Share Long Impleme SDG Co., made the following special commitment: with 36 2005-12-25 Merger Reform term nting Ltd. months since the day the reform plan starts to take effect, SDG would not list at Shenzhen Stock Exchange and sell the shares of Tellus it held (except for the shares used to promote the administration level of Tellus).(3)The administration level would abide by the laws, regulations and rules, and perform its statutory commitment duty. (4) SDG made the commitment: “The Promiser hereby promises that, if the Promiser failed to fulfill its commitment or not 7 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) fully fulfill its commitment, it would compensate other shareholders for their losses suffered thereafter”.(5) SDG declared: “The Promiser would dutifully fulfill its commitments and shoulder corresponding legal responsibilities. The Promiser would transfer the shares held by it only if the assignee agree and have the ability to shoulder the commitment responsibility.”2. Special commitment concerning the incentive mechanism: To effectively boost the core management level and business backbones for long, SDG would take out its shares, not exceeding 10% in total number after the Share Merger Reform, and apply them to the boost of the administration level. The shares would be sold to the Company’s administrative level over 3 years, with the selling price being the net asset value per share audited during the period nearest to the implementation. Before the implementation of the promoting plan by share selling each year, the administration level must prepay the Company a risk responsibility fund, i.e. 20% of the planned selling price; Should the work of the performance examination set by the Board failed to be finished, the paid risk responsibility fund would not be refunded and shall be owned by the Company. Detailed rules concerning the limitations on the administration level, such as the subscription conditions and risk responsibility fund, and boost plans would be set by the Board and submitted to relevant departments for approval. The implementation of the shares for promoting would be conducted strictly according to relevant laws and regulations, and the circulation conditions of these shares would be in conformity with relevant regulations set by the Shenzhen Stock Exchange. 3. Relevant expenses of this Share Merger Reform of Tellus would be paid by SDG. Commitments made in acquisition report or equity change report Commitments made in assets reorganization Commitments made in initial 8 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) public offering or refinancing Other commitments for small and medium shareholders of the company Perform the commitment Yes promptly or not Make commitment in respect of the competition and related No transaction or not Performance of commitment Implementing IV. Predict of the business performance from January to June 2013 Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be loss or have great changes comparing with the same period of last year □Applicable √Not applicable IV. Forecast of operation performance from Jan. – June of 2013 □Applicable √Not applicable V. Securities Investment Amount of Proportio Amount Proportio Initial stock-hol n of of n of Book Gains and Short investmen ding at stock-hol stock-hol stock-hol value at Variety of Code of loss in the Accounti Source of form of t the ding at the ding at ding at the the end of securities securities reporting ng subject stock securities cost(RM beginning beginning the end of end of the the period (RMB) B) of the of the the period period (RMB) period period (% (Share) (%) (Share) Total 0.00 0 -- 0 -- 0.00 0.00 -- -- Statement of equity of other listed companies held VI. Derivative Investment Derivative investment held at period-end □Applicable √Not applicable Notes VII. Registration form for receiving research, communication and interview in the report period Nil 9 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Section IV. Financial statement I. Financial statement 1. Consolidated balance sheet Prepared by ShenZhen Tellus Holding Co.,Ltd. Unit: RMB Items Balance at period-end Balance at period-begin Current assets: Monetary funds 40,448,975.04 55,145,531.39 Settlement provisions Capital lent Transaction finance asset Notes receivable Accounts receivable 6,018,769.75 5,779,383.21 Accounts paid in advance 13,756,659.33 8,453,261.56 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Interest receivable Dividend receivable Other receivables 20,472,235.91 12,294,045.05 Purchase restituted finance asset Inventories 37,982,121.86 47,813,852.20 Non-current asset due within one year Other current assets 5,749,453.80 7,495,557.97 Total current assets 124,428,215.69 136,981,631.38 Non-current assets: Granted loans and advances Finance asset available for sales 1,462,238.25 1,591,906.25 Held-to-maturity securities 100,000.00 100,000.00 Long-term account receivable Long-term equity investment 186,194,030.80 186,572,923.39 10 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Investment property 94,279,182.10 96,666,571.61 Fixed assets 154,208,203.25 156,061,636.80 Construction in progress 15,898,353.75 12,977,929.03 Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 92,213.64 106,588.62 Expense on Research and Development Goodwill Long-term expenses to be 723,067.99 803,230.14 apportioned Deferred income tax asset 26,709,762.78 26,709,762.78 Other non-current asset 26,339,112.00 26,339,112.00 Total non-current asset 506,006,164.56 507,929,660.62 Total assets 630,434,380.25 644,911,292.00 Current liabilities: Short-term loans 93,826,654.00 93,881,155.00 Loan from central bank Absorbing deposit and interbank deposit Capital borrowed Transaction financial liabilities Notes payable 6,513,591.24 Accounts payable 22,395,002.54 23,626,617.53 Accounts received in advance 3,374,718.05 31,857,080.49 Selling financial asset of repurchase Commission charge and commission payable Wage payable 11,716,191.34 12,581,105.70 Taxes payable 12,045,707.10 11,845,434.44 Interest payable Dividend payable 282,140.75 1,455,297.72 Other accounts payable 108,780,056.00 99,275,953.73 11 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Reinsurance payables Insurance contract reserve Security trading of agency Security sales of agency Non-current liabilities due within 1 12,000,000.00 12,000,000.00 year Other current liabilities Total current liabilities 270,934,061.02 286,522,644.61 Non-current liabilities: Long-term loans 140,000,000.00 143,000,000.00 Bonds payable Long-term account payable 12,981,872.24 12,981,872.24 Special accounts payable Projected liabilities Deferred income tax liabilities 1,345,258.91 1,345,258.91 Other non-current liabilities Total non-current liabilities 154,327,131.15 157,327,131.15 Total liabilities 425,261,192.17 443,849,775.76 Owner’s equity (or shareholders’ equity): Paid-in capital (or share capital) 220,281,600.00 220,281,600.00 Capital public reserve 8,603,026.55 8,732,694.55 Less: Inventory shares Reasonable reserve Surplus public reserve 2,952,586.32 2,952,586.32 Provision of general risk Retained profit -42,757,638.01 -47,291,479.26 Balance difference of foreign currency translation Total owner’s equity attributable to 189,079,574.86 184,675,401.61 parent company Minority interests 16,093,613.22 16,386,114.63 Total owner’s equity(or shareholders’ 205,173,188.08 201,061,516.24 equity) Total liabilities and owner’s equity(or 630,434,380.25 644,911,292.00 shareholders’ equity) Legal representative: Zhang Ruili Person in charger of accounting works: Luo Bojun 12 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) CFO: Fu Bin Person in charger of accounting organ: Ke Wensheng 2. The parent company’s balance sheet Prepared by ShenZhen Tellus Holding Co.,Ltd. Unit: RMB Items Balance at period-end Balance at period-begin Current assets: Monetary funds 8,336,570.05 1,614,187.49 Transaction finance asset Notes receivable Accounts receivable Accounts paid in advance Interest receivable Dividend receivable Other receivables 38,389,693.82 53,031,898.91 Inventories Non-current asset due within one year Other current assets Total current assets 46,726,263.87 54,646,086.40 Non-current assets: Finance asset available for sales 1,462,238.25 1,591,906.25 Held-to-maturity securities Long-term account receivable Long-term equity investment 412,623,219.86 412,739,079.62 Investment property 58,143,012.84 58,884,316.80 Fixed assets 18,729,045.92 18,963,289.36 Construction in progress 235,849.10 235,849.10 Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 65,546.88 77,421.87 Expense on Research and Development 13 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Goodwill Long-term expenses to be 96,520.48 106,861.96 apportioned Deferred income tax asset 14,064,022.84 14,064,022.84 Other non-current asset Total non-current asset 505,419,456.17 506,662,747.80 Total assets 552,145,720.04 561,308,834.20 Current liabilities: Short-term loans 49,544,160.00 49,544,160.00 Transaction financial liabilities Notes payable Accounts payable Accounts received in advance Wage payable 3,327,227.98 3,400,003.58 Taxes payable 291,405.62 286,821.39 Interest payable Dividend payable Other accounts payable 263,859,406.42 268,460,296.54 Non-current liabilities due within 1 6,000,000.00 6,000,000.00 year Other current liabilities Total current liabilities 323,022,200.02 327,691,281.51 Non-current liabilities: Long-term loans 100,000,000.00 101,500,000.00 Bonds payable Long-term account payable Special accounts payable Projected liabilities Deferred income tax liabilities 353,363.01 353,363.01 Other non-current liabilities Total non-current liabilities 100,353,363.01 101,853,363.01 Total liabilities 423,375,563.03 429,544,644.52 Owner’s equity (or shareholders’ equity): Paid-in capital (or share capital) 220,281,600.00 220,281,600.00 14 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Capital public reserve 5,409,603.27 5,539,271.27 Less: Inventory shares Reasonable reserve Surplus public reserve 2,952,586.32 2,952,586.32 Provision of general risk Retained profit -99,873,632.58 -97,009,267.91 Balance difference of foreign currency translation Total owner’s equity(or shareholders’ 128,770,157.01 131,764,189.68 equity) Total liabilities and owner’s equity(or 552,145,720.04 561,308,834.20 shareholders’ equity) Legal representative: Zhang Ruili Person in charger of accounting works: Luo Bojun CFO: Fu Bin Person in charger of accounting organ: Ke Wensheng 3. Consolidated Profit Statement Prepared by ShenZhen Tellus Holding Co.,Ltd. Unit: RMB Items Amount at this period Amount at last period I. Total operating income 111,783,990.45 95,887,355.30 Including: Operating income 111,783,990.45 95,887,355.30 Interest income Insurance gained Commission charge and commission income II. Total operating cost 107,295,506.39 97,701,152.75 Including: Operating cost 88,377,796.06 78,903,888.31 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 15 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Operating tax and extras 1,621,199.00 1,245,049.93 Sales expenses 4,758,585.57 4,967,607.80 Administration expenses 8,975,204.98 10,469,393.62 Financial expenses 3,562,720.78 2,115,213.09 Losses of devaluation of asset Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed -378,892.59 -599,796.41 with “-”) Including: Investment income on -378,892.59 -599,796.41 affiliated company and joint venture Exchange income (Loss is listed with “-”) III. Operating profit (Loss is listed 4,109,591.47 -2,413,593.86 with “-”) Add: Non-operating income 168,476.04 22,954.87 Less: Non-operating expense 3,900.00 21,302.80 Including: Disposal loss of 3,900.00 21,302.80 non-current asset IV. Total Profit (Loss is listed with 4,274,167.51 -2,411,941.79 “-”) Less: Income tax 32,827.67 140,321.52 V. Net profit (Net loss is listed with “-”) 4,241,339.84 -2,552,263.31 Including: Net profit achieved by the merged party before the merger Net profit attributable to owner’s 4,533,841.25 -2,215,133.02 equity of parent company Minority shareholders’ gains and -292,501.41 -337,130.29 losses VI. Earnings per share -- -- i. Basic earnings per share 0.0206 -0.0101 ii. Diluted earnings per share 0.0206 -0.0101 VII. Other consolidated income -129,668.00 3,473.25 VIII. Total consolidated income 4,111,671.84 -2,548,790.06 Total consolidated income attributable 4,404,196.25 -2,211,659.77 to owners of parent company Total consolidated income attributable -292,524.41 -337,130.29 to minority shareholders Legal representative: Zhang Ruili Person in charger of accounting works: Luo Bojun 16 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) CFO: Fu Bin Person in charger of accounting organ: Ke Wensheng 4. Profit statement of parent company Prepared by ShenZhen Tellus Holding Co.,Ltd. Unit: RMB Items Amount at this period Amount at last period I. Operating income 4,396,802.81 3,375,354.25 Less: Operating income 970,950.58 1,015,295.07 Operating tax and extras 246,220.95 189,019.85 Sales expenses Administration expenses 3,865,747.06 4,002,754.97 Financial expenses 2,062,389.13 801,280.24 Losses of devaluation of asset Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed -115,859.76 -294,309.70 with “-”) Including: Investment income on affiliated company and joint venture II. Operating profit (Loss is listed -2,864,364.67 -2,927,305.58 with “-”) Add: Non-operating income Less: Non-operating expense Including: Disposal loss of non-current asset III. Total Profit (Loss is listed with -2,864,364.67 -2,927,305.58 “-”) Less: Income tax IV. Net profit (Net loss is listed with -2,864,364.67 -2,927,305.58 “-”) V. Earnings per share -- -- i. Basic earnings per share -0.013 -0.0133 ii. Diluted earnings per share -0.013 -0.0133 VI. Other consolidated income -129,668.00 3,473.25 VII. Total consolidated income -2,994,032.67 -2,923,832.33 Legal representative: Zhang Ruili Person in charger of accounting works: Luo Bojun CFO: Fu Bin Person in charger of accounting organ: Ke Wensheng 17 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) 5. Consolidated cash flow statement Prepared by ShenZhen Tellus Holding Co.,Ltd. Unit: RMB Items Amount at this period Amount at last period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor 110,548,553.86 96,520,634.54 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 Insured savings and net increase of investment Net increase of disposal of transaction financial asset 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 6,406,797.27 21,015,311.62 operating activities Subtotal of cash inflow arising 116,955,351.13 117,535,946.16 from operating activities Cash paid for purchasing commodities and receiving labor 82,406,107.92 93,570,455.78 service Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation 18 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 14,304,820.54 15,753,100.14 Taxes paid 4,948,369.81 4,974,080.37 Other cash paid concerning 19,879,224.95 18,473,093.59 operating activities Subtotal of cash outflow arising 121,538,523.22 132,770,729.88 from operating activities Net cash flows arising from -4,583,172.09 -15,234,783.72 operating activities II. Cash flows arising from investing activities: Cash received from recovering 84,713.03 investment Cash received from investment 3,500,000.00 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 84,713.03 3,500,000.00 investing activities Cash paid for purchasing fixed, 3,734,451.77 276,435.90 intangible and other long-term assets Cash paid for investment Net increase of mortgaged loans Net cash received from subsidiaries and other units Other cash paid concerning 1,552.50 investing activities Subtotal of cash outflow from 3,736,004.27 276,435.90 investing activities Net cash flows arising from -3,651,291.24 3,223,564.10 investing activities III. Cash flows arising from financing activities Cash received from absorbing 19 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) investment Including: Cash received from absorbing minority shareholders’ investment by subsidiaries Cash received from loans 13,800,000.00 17,200,000.00 Cash received from issuing bonds Other cash received concerning financing activities Subtotal of cash inflow from 13,800,000.00 17,200,000.00 financing activities Cash paid for settling debts 16,800,000.00 14,169,251.67 Cash paid for dividend and profit 3,462,093.02 1,806,022.66 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 20,262,093.02 15,975,274.33 financing activities Net cash flows arising from -6,462,093.02 1,224,725.67 financing activities IV. Influence on cash due to fluctuation in exchange rate V. Net increase of cash and cash -14,696,556.35 -10,786,493.95 equivalents Add: Balance of cash and cash 55,145,531.39 55,926,573.46 equivalents at the period -begin VI. Balance of cash and cash 40,448,975.04 45,140,079.51 equivalents at the period -end Legal representative: Zhang Ruili Person in charger of accounting works: Luo Bojun CFO: Fu Bin Person in charger of accounting organ: Ke Wensheng 6. Cash flow statement of parent company Prepared by ShenZhen Tellus Holding Co.,Ltd. Unit: RMB Items Amount at this period Amount at last period I. Cash flows arising from operating activities: Cash received from selling 3,131,027.63 116,820.00 commodities and providing labor 20 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) services Write-back of tax received Other cash received concerning 25,968,306.62 10,465,885.40 operating activities Subtotal of cash inflow arising 29,099,334.25 10,582,705.40 from operating activities Cash paid for purchasing commodities and receiving labor service Cash paid to/for staff and workers 4,055,613.46 3,979,127.40 Taxes paid 591,738.81 547,482.81 Other cash paid concerning 14,940,871.03 4,116,086.03 operating activities Subtotal of cash outflow arising 19,588,223.30 8,642,696.24 from operating activities Net cash flows arising from 9,511,110.95 1,940,009.16 operating 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 activities Cash paid for purchasing fixed, 49,049.00 38,153.96 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 49,049.00 38,153.96 investing activities Net cash flows arising from -49,049.00 -38,153.96 21 Shenzhen Tellus Holding Co., Ltd. First Quarterly Report 2013 (Full-Text) investing 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 outflow from financing activities Cash paid for settling debts 1,500,000.00 1,120,000.00 Cash paid for dividend and profit 1,239,679.39 763,639.09 distributing or interest paying Other cash paid concerning financing activities Subtotal of cash outflow from 2,739,679.39 1,883,639.09 financing activities Net cash flows arising from -2,739,679.39 -1,883,639.09 financing activities IV. Influence on cash due to fluctuation in exchange rate V. Net increase of cash and cash 6,722,382.56 18,216.11 equivalents Add: Balance of cash and cash 1,614,187.49 64,442.86 equivalents at the period -begin VI. Balance of cash and cash 8,336,570.05 82,658.97 equivalents at the period -end Legal representative: Zhang Ruili Person in charger of accounting works: Luo Bojun CFO: Fu Bin Person in charger of accounting organ: Ke Wensheng II. Audit report Whether the first quarterly report had been audited or not □ Yes √ No 22