深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Shenzhen Tellus Holding Co., Ltd. The Third Quarterly Report For 2018 October 2018 1 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Section I. Important Notice Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shenzhen Tellus Holding Co., Ltd. (hereinafter referred to as the Company) 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 are present the meeting of the Board for deliberating the Third Quarter Report of the Company in person. Fu Chunlong, person in charge of the Company, head of the accounting works Lou Hong and Liu Yuhong, accounting body principals (accountant in charge) hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete. 2 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Section II. Basic information of Company I. Main accounting data and index Whether it has retroactive adjustment or re-statement on previous accounting data or not □Yes √No Current period-end Period-end of last year Increase/decrease Total assets (RMB) 1,542,080,471.95 1,403,314,594.42 9.89% Net assets attributable to shareholders of listed company 999,099,511.52 963,259,056.63 3.72% (RMB) Increase/decrease in Increase/decrease in From Year-begin to comparison with Current period comparison with same end of the Period year-begin to period of last year Period-end of last year Operating revenue (RMB) 92,625,770.58 19.69% 290,580,852.31 21.90% Net profit attributable to shareholders of the listed company 8,920,175.03 -44.28% 35,840,454.89 -11.73% (RMB) Net profit attributable to shareholders of the listed company 6,816,699.27 -48.12% 28,915,354.95 -6.25% after deducting non-recurring gains and losses (RMB) Net cash flow arising from -- -- -25,979,677.74 -165.30% operating activities (RMB) Basic earnings per share 0.0300 -44.24% 0.1206 -11.71% (RMB/Share) Diluted earnings per share 0.0300 -44.24% 0.1206 -11.71% (RMB/Share) Weighted average ROE 0.90% -0.83% 3.65% -0.78% 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 1,308,598.25 Income from equity transfer write-off that accrued for impairment of assets) 3 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Capital occupancy expense, collected from non-financial 56,874.98 enterprises and recorded in current gains and losses Except for effective hedge business relevant to normal operation of the Company, gains and losses arising from fair value change of tradable financial assets and tradable financial liabilities, and 6,122,149.62 Income from financing products investment income from disposal of tradable financial assets, tradable financial liabilities and financial assets available for sale Restoring of receivable impairment provision that tested 434,566.24 Restoring of bad debt provision individually Other non-operating income and expenditure except for the -62,301.80 aforementioned items Less: impact on income tax 571,417.14 Impact on minority shareholders’ equity (post-tax) 363,370.21 Total 6,925,099.94 -- Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons □ Applicable √ Not applicable In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss. II. Statement of the total shareholders and shares-held of top ten shareholders at end of the Period 1. Number of common shareholders and preference shareholders with voting rights recovered and top ten common shareholders In share Total preference shareholders Total number of common with voting rights recovered at shareholders at the end of report 53,835 0 end of reporting period (if period 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 State-owned 49.09% 145,925,256 0 SDG CO., LTD. corporate Shenzhen Capital Domestic 22.87% 67,974,300 0 4 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Fortune Jewelry non-state-owned Industry corporate Investment Enterprise (limited partnership) GUOTAI JUNAN Foreign SECURITIES(H 0.40% 1,201,304 0 corporation ONGKONG) LIMITED Domestic nature Li Guangxin 0.26% 761,161 0 person Agricultural Bank of China Ltd. – Other 0.23% 675,000 0 CSI 500 ETF Domestic nature Zhou Jun 0.10% 300,558 0 person Domestic nature He Xing 0.10% 300,100 0 person Domestic nature Huang Chuyun 0.09% 266,500 0 person Celestial Foreign Securities 0.07% 196,226 0 corporation Limited Foreign nature Zeng Huiming 0.07% 195,000 0 person Particular about top ten shareholders with un-restrict shares held Type of shares Shareholders Amount of un-restrict shares held Type Amount RMB ordinary SHENZHEN SDG CO., LTD. 145,925,256 145,925,256 shares Shenzhen Capital Fortune Jewelry RMB ordinary Industry Investment Enterprise 67,974,300 67,974,300 shares (limited partnership) GUOTAI JUNAN Domestically SECURITIES(HONGKONG) 1,201,304 listed foreign 1,201,304 LIMITED shares Domestically Li Guangxin 761,161 761,161 listed foreign 5 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 shares Agricultural Bank of China Ltd. – RMB ordinary 675,000 675,000 CSI 500 ETF shares RMB ordinary Zhou Jun 300,558 300,558 shares Domestically He Xing 300,100 listed foreign 300,100 shares Domestically Huang Chuyun 266,500 listed foreign 266,500 shares Domestically Celestial Securities Limited 196,226 listed foreign 196,226 shares Domestically Zeng Huiming 195,000 listed foreign 195,000 shares Among the top ten shareholders, there exists no associated relationship between the state-owned legal person’s shareholders Shenzhen SDG Co., Ltd and other shareholders, and Explanation on associated they do not belong to the consistent actionist regulated by the Management Measure of relationship among the top ten Information Disclosure on Change of Shareholding for Listed Companies. For the other shareholders or consistent action shareholders of circulation share, the Company is unknown whether they belong to the consistent actionist. 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 top 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 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Section III. Important events I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons √ Applicable □Not applicable Balance Sheet Ratio Assets Closing balance Opening balance Amount changed Causes changed Received bonus from shareholding Monetary Fund 134,142,994.92 161,793,218.56 -27,650,223.64 -17.09% corporation and financial products purchased increased Account receivable for jewelry Account 82,647,161.46 44,215,236.68 38,431,924.78 86.92% wholesale from Sichuan Jewelry receivable Company increased Stock vehicles from Huari Company Inventory 6,668,565.38 12,646,227.22 -5,977,661.84 -47.27% at period-end declined Other current 322,657,535.53 219,582,250.70 103,075,284.83 46.94% Purchased more financial products assets Long term Accrual investment income changes equity 244,427,019.71 284,464,749.15 -40,037,729.44 -14.07% on equity method by shareholding investment corporation, bonus of Zung Fu Tellus Loans of current capital from the bank Short-term loans 143,000,000.00 120,000,000.00 23,000,000.00 19.17% increased in the period Long-term loans 34,934,887.55 38,600,000.00 -3,665,112.45 -9.50% Bank loans payment Net profit attributable to owners of Retained profit 133,639,050.69 97,798,595.80 35,840,454.89 36.65% parent company increased in the period Investment contribution from minority Minority’s 49,559,553.75 34,764,517.26 14,795,036.49 42.56% are received by Sichuan Jewelry interest Company in the period The account for vehicle purchasement Account paid in are prepaid by Huari Company; the 10,269,037.50 3,737,706.70 6,531,330.80 174.74% advance rental prepaid by Tellus Starlight Jinzun Other account Account of maintenance works are 24,904,867.79 15,820,265.08 9,084,602.71 57.42% receivable hanging The first phase of Shuibei Jewelry Fixed assets 548,534,875.93 120,296,822.84 428,238,053.09 355.98% Building transfer-in 7 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Construction in The first phase of Shuibei Jewelry 9,863,136.26 378,160,896.69 -368,297,760.43 -97.39% progress Building transfer-out Account Payable for engineering of first phase 74,987,733.36 28,032,708.69 46,955,024.67 167.50% payables of Shuibei Jewelry Building Account Vehicle-sales account received by received in 9,014,522.68 13,790,019.47 -4,775,496.79 -34.63% Huari Company are carry-over as advance income The initial account of equity transfer from Xinglong Company was hanging Other payables 180,335,473.86 153,329,405.21 27,006,068.65 17.61% and loan principal & interest are paid to SDG Profit statement Same period last Ratio Item This cumulative Amount changed Causes year changed Taxes and 4,328,002.45 4,014,862.04 313,140.41 7.80% additional Income from Investment income from shareholding 24,781,246.51 22,381,239.37 2,400,007.14 10.72% investment corporation increased After first phase of Shuibei Jewelry Net profit Building completed, the operation attributable to 35,840,454.89 40,604,639.94 -4,764,185.05 -11.73% costs increased for building put into shareholders of used; the loan interest for other current listed companies capital increased on a y-o-y basis Financial The interest costs increased due to the 4,664,936.72 548,598.69 4,116,338.03 750.34% expenses soaring loan principal Assets Bad debt provision accrual in the 383,789.39 -189,620.97 573,410.36 -302.40% impairment loss period Income tax 3,512,202.79 1,476,180.17 2,036,022.62 137.93% Operation profit increased Cash flow statement Same period last Ratio Item This cumulative Amount changed Causes year changed Received the initial equity transfer Net cash flow amount from Xinglong Company and arising from bonus of Zung Fu Tellus in the period; -571,829.95 -227,894,301.37 227,322,471.42 -99.75% investment the cash in-flow increased mainly activities because redeemed financial products at maturity increased on a y-o-y basis Net cash flow New loans declined from a year earlier arising from and the cash out-flow increased due to 18,901,213.52 97,839,101.96 -78,937,888.44 -80.68% financing the payment of loan principal & activities interest 8 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Net increase of cash and cash -7,650,223.64 -90,270,292.82 82,620,069.18 -91.53% equivalent Net cash flow The jewelry wholesale on credit arising from payment from Sichuan Jewelry -25,979,677.74 39,785,059.97 -65,764,737.71 -165.30% operation Company are not in the payback activities period II. Progress and influence of the main events as well as solution analysis specification □Applicable √Not applicable III. Commitments that the actual controller, shareholders, related party, acquirer and the Company etc. 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 party, acquirer and the Company etc. have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period IV. Estimation of operation performance for year of 2018 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason □Applicable √Not applicable V. Particular about security investment □ Applicable √ Not applicable The Company had no security investment in Period. VI. Entrust finance √Applicable □Not applicable In 10 thousand Yuan Type Capital sources Amount entrust Unexpired balance Overdue amount Bank financial products Idle fund-raising 3,950 3,950 0 Bank financial products Own funds 30,377 30,227 0 Total 34,327 34,177 0 Details of the single major amount, or high-risk entrust investment with low security, poor fluidity and non-guaranteed: 9 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 □ Applicable √ Not applicable Entrust financial expected to be unable to recover the principal or impairment might be occurred □ Applicable √ Not applicable VII. Particulars about derivatives investment □ Applicable √ Not applicable The Company had no derivatives investment in Period. VIII. Registration form for receiving research, communication and interview in the report period □ Applicable √ Not applicable No registration form for receiving research, communication or interview in the Period. IX. Guarantee outside against the regulation □Applicable √Not applicable The Company had no guarantee outside against the regulation in the reporting period. X. Non-operational fund occupation from controlling shareholders and its related party □ Applicable √ Not applicable The Company had no non-operational fund occupation form controlling shareholders and its related party in the period. 10 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Section IV. Financial Statement I. Financial statement 1. Consolidate balance sheet Prepared by Shenzhen Tellus Holding Co., Ltd. 2018-09-30 In RMB Item Balance at period-end Balance at period-begin Current assets: Monetary funds 134,142,994.92 161,793,218.56 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 82,647,161.46 44,215,236.68 receivable Including: Notes receivable Accounts receivable 82,647,161.46 44,215,236.68 Accounts paid in advance 10,269,037.50 3,737,706.70 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other receivables 24,904,867.79 15,820,265.08 Purchase restituted finance asset Inventories 6,668,565.38 12,646,227.22 Assets held for sale Non-current asset due within one year Other current assets 322,657,535.53 219,582,250.70 Total current assets 581,290,162.58 457,794,904.94 Non-current assets: Loans and payments on behalf 11 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Finance asset available for sales 10,176,617.20 10,176,617.20 Held-to-maturity investment Long-term account receivable Long-term equity investment 244,427,019.71 284,464,749.15 Investment property 69,846,269.95 73,223,512.21 Fixed assets 548,534,875.93 120,296,822.84 Construction in progress 9,863,136.26 378,160,896.69 Productive biological asset Oil and gas asset Intangible assets 51,334,826.42 52,349,686.92 Expense on Research and Development Goodwill Long-term expenses to be apportioned 1,569,080.02 1,779,713.94 Deferred income tax asset 24,364,822.26 24,394,028.91 Other non-current asset 673,661.62 673,661.62 Total non-current asset 960,790,309.37 945,519,689.48 Total assets 1,542,080,471.95 1,403,314,594.42 Current liabilities: Short-term loans 143,000,000.00 120,000,000.00 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 74,987,733.36 28,032,708.69 Accounts received in advance 9,014,522.68 13,790,019.47 Selling financial asset of repurchase Commission charge and commission payable Wage payable 21,833,172.36 23,171,154.53 Taxes payable 10,875,456.51 9,927,572.27 Other accounts payable 180,335,473.86 153,329,405.21 Reinsurance payables 12 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 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 440,046,358.77 348,250,860.17 Non-current liabilities: Long-term loans 34,934,887.55 38,600,000.00 Bonds payable Including: preferred stock Perpetual capital securities Long-term account payable 3,920,160.36 3,920,160.36 Long-term wages payable Projected liabilities Deferred income Deferred income tax liabilities Other non-current liabilities 14,520,000.00 14,520,000.00 Total non-current liabilities 53,375,047.91 57,040,160.36 Total liabilities 493,421,406.68 405,291,020.53 Owner’s equity: Share capital 297,281,600.00 297,281,600.00 Other equity instrument Including: preferred stock Perpetual capital securities Capital public reserve 565,226,274.51 565,226,274.51 Less: Inventory shares Other comprehensive income Reasonable reserve Surplus public reserve 2,952,586.32 2,952,586.32 Provision of general risk Retained profit 133,639,050.69 97,798,595.80 Total owner’s equity attributable to parent 999,099,511.52 963,259,056.63 company Minority interests 49,559,553.75 34,764,517.26 13 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Total owner’s equity 1,048,659,065.27 998,023,573.89 Total liabilities and owner’s equity 1,542,080,471.95 1,403,314,594.42 Legal Representative: Fu Chunlong Person in charge of accounting works: Lou Hong Person in charge of accounting institute: Liu Yuhong 2. Balance Sheet of Parent Company In RMB Item Balance at period-end Balance at period-begin Current assets: Monetary funds 97,759,966.16 97,991,738.05 Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Notes receivable and accounts 35,432.00 receivable Including: Notes receivable Accounts receivable 35,432.00 Account paid in advance 1,368,798.42 Other receivables 107,835,300.10 99,322,267.37 Inventories Assets held for sale Non-current assets maturing within one year Other current assets 184,500,000.00 203,500,000.00 Total current assets 391,499,496.68 400,814,005.42 Non-current assets: Available-for-sale financial assets 10,176,617.20 10,176,617.20 Held-to-maturity investments Long-term receivables Long-term equity investments 882,729,262.28 789,830,758.66 Investment property 44,426,013.75 46,749,467.61 Fixed assets 14,924,034.13 15,536,781.07 Construction in progress 9,863,136.26 5,554,512.79 Productive biological assets 14 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Oil and natural gas assets Intangible assets 260,772.40 341,121.77 Research and development costs Goodwill Long-term deferred expenses 219,772.22 223,715.66 Deferred income tax assets 13,840,105.19 13,869,311.84 Other non-current assets Total non-current assets 976,439,713.43 882,282,286.60 Total assets 1,367,939,210.11 1,283,096,292.02 Current liabilities: Short-term borrowings 143,000,000.00 120,000,000.00 Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable and accounts payable 14,000.00 14,000.00 Accounts received in advance 1,261,904.81 1,511.00 Wage payable 4,544,829.61 5,769,360.88 Taxes payable 875,467.19 474,977.89 Other accounts payable 327,002,910.48 295,942,266.75 Liability held for sale Non-current liabilities due within 1 year Other current liabilities Total current liabilities 476,699,112.09 422,202,116.52 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Long-term account payable Long-term wages payable Projected liabilities Deferred income Deferred income tax liabilities 15 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Other non-current liabilities Total non-current liabilities Total liabilities 476,699,112.09 422,202,116.52 Owners’ equity: Share capita 297,281,600.00 297,281,600.00 Other equity instrument Including: preferred stock Perpetual capital securities Capital public reserve 562,032,851.23 562,032,851.23 Less: Inventory shares Other comprehensive income Reasonable reserve Surplus reserve 2,952,586.32 2,952,586.32 Retained profit 28,973,060.47 -1,372,862.05 Total owner’s equity 891,240,098.02 860,894,175.50 Total liabilities and owner’s equity 1,367,939,210.11 1,283,096,292.02 3. Consolidated Profit Statement (the period) In RMB Item Current Period Last Period I. Total operating income 92,625,770.58 77,386,017.88 Including: Operating income 92,625,770.58 77,386,017.88 Interest income Insurance gained Commission charge and commission income II. Total operating cost 88,942,856.91 74,034,788.90 Including: Operating cost 71,323,254.04 57,359,692.25 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of 16 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Operating tax and extras 1,405,380.53 1,203,936.28 Sales expenses 4,706,989.97 4,271,637.52 Administration expenses 9,622,419.12 10,677,384.70 R&D expenses Financial expenses 1,893,064.11 522,138.15 Including: Interest expenses 2,406,812.68 1,096,102.74 Interest income -572,214.18 -635,885.48 Losses of devaluation of asset -8,250.86 Add: other income Investment income (Loss is listed 6,915,224.26 12,744,661.13 with “-”) Including: Investment income on 5,047,631.61 9,902,285.56 affiliated company and joint venture Changing income of fair value(Loss is listed with “-”) Exchange income (Loss is listed with “-”) Income from assets disposal 56,271.52 (Loss is listed with “-”) III. Operating profit (Loss is listed 10,598,137.93 16,152,161.63 with “-”) Add: Non-operating income -1,088.56 53,335.15 Less: Non-operating expense -4,080.68 2,310.06 IV. Total Profit (Loss is listed with 10,601,130.05 16,203,186.72 “-”) Less: Income tax expense 1,624,729.02 852,493.08 V. Net profit (Net loss is listed with “-”) 8,976,401.03 15,350,693.64 (i) net profit from continuous operation (Net loss is 8,976,401.03 15,350,693.64 listed with “-”) (ii) net profit from discontinued operation (Net loss is listed with “-”) Net profit attributable to owner’s of 8,920,175.03 16,007,734.85 17 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 parent company Minority shareholders’ gains and 56,226.00 -657,041.21 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 5. Translation differences arising on translation of foreign currency financial statements 6. Other 18 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 8,976,401.03 15,350,693.64 Total comprehensive income attributable to owners of parent 8,920,175.03 16,007,734.85 Company Total comprehensive income 56,226.00 -657,041.21 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.0300 0.0538 (ii) Diluted earnings per share 0.0300 0.0538 As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0 Yuan achieved last period Legal Representative: Fu Chunlong Person in charge of accounting works: Lou Hong Person in charge of accounting institute: Liu Yuhong 4. Profit Statement of Parent Company (the period) In RMB Item Current Period Last Period I. Operating income 10,104,292.39 9,834,202.78 Less: Operating cost 896,708.01 951,008.01 Operating tax and extras 355,004.57 364,342.41 Sales expenses Administration expenses 4,612,015.01 5,971,215.34 R&D expenses Financial expenses 1,351,989.53 364,457.26 Including: Interest expenses 1,751,845.41 965,820.84 Interest income -403,986.67 -604,500.78 Losses of devaluation of asset Add: other income Investment income (Loss is 5,373,321.58 9,535,534.43 listed with “-”) 19 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Including: Investment income 4,272,105.15 6,806,109.77 on affiliated company and joint venture Changing income of fair value(Loss is listed with “-”) Income from assets disposal (Loss is listed with “-”) II. Operating profit (Loss is listed 8,261,896.85 11,718,714.19 with “-”) Add: Non-operating income 2,410.52 Less: Non-operating expense III. Total Profit (Loss is listed with 8,264,307.37 11,718,714.19 “-”) Less: Income tax expense 9,735.55 9,735.55 IV. Net profit (Net loss is listed with 8,254,571.82 11,708,978.64 “-”) (i) net profit from continuous operation (Net loss is 8,254,571.82 11,708,978.64 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 method 20 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 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 8,254,571.82 11,708,978.64 VII. Earnings per share: (i) Basic earnings per share 0.0278 0.0394 (ii) Diluted earnings per share 0.0278 0.0394 5. Consolidated Profit Statement (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Total operating income 290,580,852.31 238,370,122.44 Including: Operating income 290,580,852.31 238,370,122.44 Interest income Insurance gained Commission charge and commission income II. Total operating cost 276,244,343.48 220,942,995.20 Including: Operating cost 225,063,206.15 175,384,506.21 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of 21 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Operating tax and extras 4,328,002.45 4,014,862.04 Sales expenses 13,044,897.24 11,155,242.77 Administration expenses 28,759,511.53 30,029,406.46 R&D expenses Financial expenses 4,664,936.72 548,598.69 Including: Interest expenses 6,088,906.21 2,445,502.06 Interest income -1,625,516.25 -2,032,480.91 Losses of devaluation of asset 383,789.39 -189,620.97 Add: other income Investment income (Loss is listed 24,781,246.51 22,381,239.37 with “-”) Including: Investment income on 17,842,932.43 12,831,894.41 affiliated company and joint venture Changing income of fair value(Loss is listed with “-”) Exchange income (Loss is listed with “-”) Income from assets disposal 56,271.52 (Loss is listed with “-”) III. Operating profit (Loss is listed 39,117,755.34 39,864,638.13 with “-”) Add: Non-operating income 33,305.83 372,852.32 Less: Non-operating expense 95,607.63 9,229.86 IV. Total Profit (Loss is listed with 39,055,453.54 40,228,260.59 “-”) Less: Income tax expense 3,512,202.79 1,476,180.17 V. Net profit (Net loss is listed with “-”) 35,543,250.75 38,752,080.42 (i) net profit from continuous operation (Net loss is 35,543,250.75 38,752,080.42 listed with “-”) (ii) net profit from discontinued operation (Net loss 22 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 is listed with “-”) Net profit attributable to owner’s of 35,840,454.89 40,604,639.94 parent company Minority shareholders’ gains and -297,204.14 -1,852,559.52 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 5. Translation differences arising on translation of foreign 23 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 currency financial statements 6. Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 35,543,250.75 38,752,080.42 Total comprehensive income attributable to owners of parent 35,840,454.89 40,604,639.94 Company Total comprehensive income -297,204.14 -1,852,559.52 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.1206 0.1366 (ii) Diluted earnings per share 0.1206 0.1366 As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0 Yuan achieved last period 6. Profit Statement of Parent Company (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Operating income 30,187,788.81 31,290,031.21 Less: Operating cost 2,739,034.23 2,751,528.03 Operating tax and extras 1,173,658.99 1,216,846.46 Sales expenses Administration expenses 12,598,259.32 14,602,139.64 R&D expenses Financial expenses 3,567,639.16 48,857.39 Including: Interest expenses 4,783,798.05 2,053,320.86 Interest income -1,244,885.01 -1,936,920.70 Losses of devaluation of asset 69,500.70 -189,620.97 Add: other income Investment income (Loss is 20,329,891.27 23,975,503.51 listed with “-”) Including: Investment income 16,426,603.62 12,527,913.26 on affiliated company and joint venture Changing income of fair 24 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 value(Loss is listed with “-”) Income from assets disposal (Loss is listed with “-”) II. Operating profit (Loss is listed 30,369,587.68 36,835,784.17 with “-”) Add: Non-operating income 5,541.49 Less: Non-operating expense III. Total Profit (Loss is listed with 30,375,129.17 36,835,784.17 “-”) Less: Income tax expense 29,206.65 29,206.65 IV. Net profit (Net loss is listed with 30,345,922.52 36,806,577.52 “-”) (i) net profit from continuous operation (Net loss is 30,345,922.52 36,806,577.52 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 method which will be reclassified subsequently to profit or loss 2. Gains or losses arising 25 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 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 30,345,922.52 36,806,577.52 VII. Earnings per share: (i) Basic earnings per share 0.1021 0.1238 (ii) Diluted earnings per share 0.1021 0.1238 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 290,734,607.93 256,675,341.11 services Net increase of customer deposit and interbank deposit Net increase of loan from central bank Net increase of capital borrowed from other financial institution Cash received from original insurance contract fee Net cash received from reinsurance business Net increase of insured savings and investment 26 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 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 22,834,886.64 89,046,069.93 operating activities Subtotal of cash inflow arising from 313,569,494.57 345,721,411.04 operating activities Cash paid for purchasing commodities and receiving labor 233,005,308.54 163,189,622.63 service Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 38,595,110.34 42,946,296.52 Taxes paid 14,588,515.73 16,985,396.11 Other cash paid concerning 53,360,237.70 82,815,035.81 operating activities Subtotal of cash outflow arising from 339,549,172.31 305,936,351.07 operating activities Net cash flows arising from operating -25,979,677.74 39,785,059.97 activities II. Cash flows arising from investing activities: Cash received from recovering 739,750,000.00 391,000,000.00 investment 27 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Cash received from investment 63,533,914.95 13,735,482.06 income Net cash received from disposal of fixed, intangible and other long-term 431,840.00 assets Net cash received from disposal of 1,504,125.26 2,343,240.90 subsidiaries and other units Other cash received concerning 46,001,000.00 investing activities Subtotal of cash inflow from investing 850,789,040.21 407,510,562.96 activities Cash paid for purchasing fixed, 22,607,470.16 16,804,864.33 intangible and other long-term assets Cash paid for investment 823,020,000.00 618,600,000.00 Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained Other cash paid concerning 5,733,400.00 investing activities Subtotal of cash outflow from investing 851,360,870.16 635,404,864.33 activities Net cash flows arising from investing -571,829.95 -227,894,301.37 activities III. Cash flows arising from financing activities Cash received from absorbing 15,000,000.00 15,172,000.00 investment Including: Cash received from absorbing minority shareholders’ 15,000,000.00 15,172,000.00 investment by subsidiaries Cash received from loans 95,082,000.00 155,600,000.00 Cash received from issuing bonds Other cash received concerning financing activities Subtotal of cash inflow from financing 110,082,000.00 170,772,000.00 activities Cash paid for settling debts 78,665,112.45 70,000,000.00 Cash paid for dividend and profit 12,515,674.03 2,932,898.04 28 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 distributing or interest paying Including: Dividend and profit of minority shareholder paid by subsidiaries Other cash paid concerning financing activities Subtotal of cash outflow from financing 91,180,786.48 72,932,898.04 activities Net cash flows arising from financing 18,901,213.52 97,839,101.96 activities IV. Influence on cash and cash equivalents due to fluctuation in 70.53 -153.38 exchange rate V. Net increase of cash and cash -7,650,223.64 -90,270,292.82 equivalents Add: Balance of cash and cash 141,793,218.56 218,497,640.10 equivalents at the period -begin VI. Balance of cash and cash 134,142,994.92 128,227,347.28 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 35,793,107.31 45,046,784.94 services Write-back of tax received Other cash received concerning 22,092,395.77 45,895,974.13 operating activities Subtotal of cash inflow arising from 57,885,503.08 90,942,759.07 operating activities Cash paid for purchasing commodities and receiving labor service Cash paid to/for staff and workers 13,865,248.22 12,125,347.08 Taxes paid 1,904,582.44 2,865,271.14 29 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Other cash paid concerning 36,052,325.18 16,244,723.52 operating activities Subtotal of cash outflow arising from 51,822,155.84 31,235,341.74 operating activities Net cash flows arising from operating 6,063,347.24 59,707,417.33 activities II. Cash flows arising from investing activities: Cash received from recovering 519,000,000.00 340,000,000.00 investment Cash received from investment 56,781,732.28 13,447,590.25 income Net cash received from disposal of fixed, intangible and other long-term assets Net cash received from disposal of 14,150,000.00 subsidiaries and other units Other cash received concerning 46,001,000.00 investing activities Subtotal of cash inflow from investing 621,782,732.28 367,597,590.25 activities Cash paid for purchasing fixed, 5,350,891.42 427,525.20 intangible and other long-term assets Cash paid for investment 608,971,900.00 581,598,000.00 Net cash received from subsidiaries and other units Other cash paid concerning 5,733,400.00 investing activities Subtotal of cash outflow from investing 620,056,191.42 582,025,525.20 activities Net cash flows arising from investing 1,726,540.86 -214,427,934.95 activities III. Cash flows arising from financing activities Cash received from absorbing investment Cash received from loans 93,000,000.00 140,000,000.00 Cash received from issuing bonds 30 深圳市特力(集团)股份有限公司 2018 年第三季度报告全文 Other cash received concerning financing activities Subtotal of cash inflow from financing 93,000,000.00 140,000,000.00 activities Cash paid for settling debts 70,000,000.00 70,000,000.00 Cash paid for dividend and profit 11,021,659.99 2,061,416.69 distributing or interest paying Other cash paid concerning financing activities Subtotal of cash outflow from financing 81,021,659.99 72,061,416.69 activities Net cash flows arising from financing 11,978,340.01 67,938,583.31 activities IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash 19,768,228.11 -86,781,934.31 equivalents Add: Balance of cash and cash 77,991,738.05 150,800,890.39 equivalents at the period -begin VI. Balance of cash and cash 97,759,966.16 64,018,956.08 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