SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 1 SHENZHEN FIYTA HOLDINGS LTD. 2010 3RD Quarterly Report – Full Text §1 Important 1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and senior executives of the Company hereby confirm that there are no important omissions, fictitious statements or serious misleading information carried in this report, and shall take all responsibilities, individually and/or jointly, for the authenticity, accuracy and completion of the whole contents. 1.2 The Company’s financial report of the third quarter has not been audited by the certified public accountants. 1.3 Mr. Wu Guangquan, the Company leader, Mr. Li Dehua, chief financial officer, and Mr. Hu Xinglong, the manager of the accounting department (accounting supervisor) hereby confirm the authenticity and completeness of the financial report enclosed in this quarterly report. §2 Company Information 2.1 Financial Highlights In RMB Sep. 30, 2010 Dec. 31, 2009 Increase/Decrease rate (%) Total Assets (RMB) 1,750,595,620.67 1,523,936,983.79 14.87% Owners’ equity attributable to the Company’s shareholders, in RMB 758,358,618.32 714,808,466.77 6.09% Capital stock (shares) 249,317,999.00 249,317,999.00 0.00% Net assets per share attributable to the Company’s shareholders (RMB/share) 3.04 2.87 6.09% Jul. to Sep., 2010 Year-on-year increase/decrease(( %) Jan. to Sep., 2010 Year-on-year increase/decrease(( %) Total operating income, in RMB 453,527,789.59 44.84% 1,264,339,700.40 42.73% Net profit attributable to the Company’s shareholders in RMB 26,122,530.20 26.49% 68,522,001.86 43.30% Net cash flows arising from operating activities, in RMB - - -58,184,368.69 -171.69% Net cash flows per share arising from operating activities (RMB/share) - - -0.23 -171.69% Basic earning per share (RMB/share) 0.105 26.51% 0.275 43.30% Diluted earning per share (RMB/share) 0.105 26.51% 0.275 43.30% Net assets-income ratio, weighted average (%) 3.66% 23.65% 9.52% 38.78% Weighted net assets-income ratio after deducting the non-recurring gains and loss (%) 3.45% 11.65% 8.52% 26.22%SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 2 Non-recurring profit and loss items Amount from year beginning to the end of the report period Notes Gain/loss from disposal of non-current assets 6,937,701.81 Government subsidy charged to the current gain and loss but except the government subsidy with close relation with the Company’s normal business, in compliance with the national policy, with the nominal amount or fixed amount 1,841,335.01 Net income and expense of the business other than the above items 372,564.26 Amount influencing the income tax -2,007,646.06 Total 7,143,955.02 - 2.2 Total number of shareholders and shares held by the top ten shareholders of non-restricted shares at the end of the report period Shares Total shareholders at the end of the report period 19,773 Shares held by top 10 shareholders of non-restricted shares Full names of shareholders Quantity of the non-restricted negotiable shares held at the end of the period Types Industrial and Commercial Bank of China – E-Fund Value Growth Mixed Securities Investment Fund 6,948,030 A Shares BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 4,775,113 B shares Industrial and Commercial Bank of China – Huitianfu Balance Growth Stock Based Securities Investment Fund 4,000,070 A Shares Industrial and Commercial Bank of China – Huitianfu Growth Focus Stock Based Securities Investment Fund 2,182,643 A Shares KGI ASIA LIMITED 2,024,572 B shares CITIC Bank – Jianxin Hengjiu Value Stock Type Securities Investment Fund 1,805,652 A Shares Industrial and Commercial Bank of China – Guotou Ruiyin Growth Selected Stock Based Securities Investment Fund 1,730,311 A Shares Agriculture Bank of China -Bank of Communications Schroder Selected Stock Securities Investment Fund 1,417,268 A Shares First Shanghai Securities Co., Ltd. 1,399,648 B shares Bank of Communications – Kerui Securities Investment Fund 1,100,000 A Shares §3 Important Events 3.1 Big Changes in Principal Accounting Statement Items and Financial Indexes and the Causes √ applicable □ inapplicable (1) Growth of the accounts receivable by RMB43.91 million over year beginning, including the accounts receivable of HARMONY growing by RMB 46.14 million over the year beginning is mainly due to growth of the sales scale. It belongs to normal settlement;SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 3 (2) Growth of taxes payable by RMB 13.44 million is mainly due to the growth of taxes payable in HARMONY by RMB 5.35 million arising from sales growth; the growth of taxes payable in Hong Kong Branch by RMB 2.62 million and the growth of taxes payable in the Manufacture Branch by RMB 2.81 million; (3) Growth of the accounts payable over the year beginning by RMB 29.17 is mainly due to growth of the sales scale, growth of the purchases of world famous watches. It belongs to normal settlement. 3.2 Progress of Significant Events, its Impacts and the Solutions 3.2.1 Qualified Audit Opinions □ Applicable √ Inapplicable (1) Engagement in such activities as supply of fund to the controlling shareholder or other related parties or outward guarantee against the regulations □ applicable √ inapplicable 3.2.3 Subscription and Implementation of Significant Contracts for Daily Operation □ applicable √ inapplicable 3.2.4 Miscellaneous □ applicable √ inapplicable 3.3 Implementation of the Commitments of the Company, the Shareholders and the Eventual Controller √ applicable □ inapplicable Commitments Acceptors Description Implementation Commitment for Equity Separation Reform Shenzhen CATIC Group (1) Shenzhen CATIC Group committed that upon completion of the equity separation reform of FIYTA, the non-negotiable shares held by Shenzhen CATIC Group would not be listed with Shenzhen Stock Exchange for trading within 36 months after the day when such shares got approved for listing. (2) Within 24 months after the 3-year sales restriction term expires, in case Shenzhen CATIC Group would sell the non-negotiable FIYTA shares it was holding through listing with Shenzhen Stock Exchange, the sales price must not be lower than RMB 25.00 per share. The commitment is in process of implementation. Commencing from the date when the equity separation reform was finished to the end of the report period, Shenzhen CATIC Group has not reduced or assigned any shares with sales restriction held by Shenzhen CATIC Group. Commitments in the acquisition report or report on change of equity - - -SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 4 Commitment at the time of important assets reorganization - - - Commitment at the time of issuing - - - Other commitment (including additional commitment) - - - 3.4 Prediction of the possibility of the accumulated net profit from the year beginning to the end of the next report period being of loss; or warning for big changes in the net profit in comparison with the same period of the previous year and the reasons □ applicable √ inapplicable 3.5 Other Important Matters Necessary to be Clarified 3.5.1 Securities Investment □ applicable √ inapplicable 3.5.2 Statement of such activities as reception, research, communication, interview in the report period Reception Time Reception place Way of reception Visitor received Topics and information furnished July 9, 2010 Company On-Site Survey Dongxing Securities Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures July 13, 2010 Company On-Site Survey Tiansun Investment Management & Consulting (Shanghai) Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures July 20, 2010 Company On-Site Survey China Merchants Fund Management Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures July 29, 2010 Company On-Site Survey Aegon-Industrial Fund Management Co.,Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures August 3, 2010 Company On-Site Survey Fortune SGAM Fund Management Co., Ltd., Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the pastSHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 5 three years. Provision of the Company’s 2009 Annual Report and published brochures August 6, 2010 Company On-Site Survey Huaxia Fund Management Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures August 18, 2010 Company On-Site Survey Shanghai Realize Investment Consulting Co., Ltd., Aegon-Industrial Fund Management Co., Ltd., China International Fund Management Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures August 19, 2010 Company On-Site Survey Wanjia Asset Management Co., Ltd., TX Investment Consulting Co., Ltd., Bank of China Investment Management Co.,Ltd., Tianhong Asset Management Co.,Ltd., Genertec Investment Managers Ltd., Orient Securities Co., Ltd., Galaxy Asset Management Co., Ltd., UBS SDIC Fund Management Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures August 20, 2010 Company On-Site Survey Everbright Pramerica Fund Management Co., Ltd., How Buy Investment Management, HuaAn Funds Management Co., Ltd., China Southern Fund Management Co., Ltd., Guosen Securities Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures August 24, 2010 Company On-Site Survey Western Securities Co., Ltd., TX Investment Consulting Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures September 8, 2010 Company On-Site Survey SYWG BNP Paribas Asset Management Co., Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategicSHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 6 Ltd, Shenyin & Wanguo Securities Research Institute Co., Ltd., Industrial Securities Co., Ltd., Guotai Junan Securities Co., Ltd., Chongyang Investment Management Co., Ltd. development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures September 16, 2010 Company On-Site Survey CITIC Securities Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures September 29, 2010 Company On-Site Survey First State Cinda Fund Management Co. Ltd., SINOCHEM GROUP Financial Co., Ltd. Development trend of the domestic luxury goods sector, some measures concerning the Company’s strategic development, brand construction, terminal management in the past three years. Provision of the Company’s 2009 Annual Report and published brochures 3.6 Investment in Derivatives □ applicable √ inapplicable 3.6.1 Holding of the Investments in Derivatives at the End of the Report Period □ applicable √ inapplicable §4 Appendix 4.1. Balance Sheet Prepared by: SHENZHEN FIYTA HOLDINGS LTD. September 30, 2010 In RMB Ending balance Opening balance Items Consolidated Parent company Consolidated Parent company Current assets: Monetary funds 94,009,319.33 46,807,097.19 95,701,580.19 46,560,890.55 Settlement Reserve Lendings Transaction based financial assets Notes receivable Accounts receivable 165,896,815.90 38,044,928.54 121,982,162.66 35,388,589.40 Advances to suppliers 12,118,402.93 9,635,501.76 Insurance premium payable Accounts receivable reinsuranceSHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 7 Reserve for accounts receivable reinsurance Interest receivable Dividend receivable 49,881,874.21 52,881,874.21 Other receivables 27,234,310.90 409,468,690.69 17,788,978.11 311,998,322.20 Reverse repurchase agreements Inventories 929,179,217.35 102,918,716.10 761,181,955.71 73,836,464.73 Non-current assets due within a Year Other current assets 2,634,846.05 3,214,514.17 Total current assets 1,231,072,912.46 647,121,306.73 1,009,504,692.60 520,666,141.09 Non-Current Assets: Loan provision and advances Available-for-sale financial assets Held –to-maturity investment Long term accounts receivable Long-term equity investment 2,052,343.85 354,560,343.85 1,921,317.92 354,429,317.92 Investment based real estate 166,930,891.84 166,930,891.84 171,577,646.00 171,577,646.00 Fixed assets: 249,812,457.26 231,419,251.55 259,762,029.76 246,256,473.81 Construction-in-process 510,000.00 510,000.00 Engineering supplies Disposal of fixed assets Production based biologic assets Oil and gas asset Intangible assets 12,894,845.21 12,004,070.54 13,476,895.15 12,614,912.03 Development expenses Goodwill 6,240,811.25 Long-term expenses to be apportioned 61,508,356.58 19,348,982.18 54,969,153.37 14,079,756.40 Deferred income tax 19,573,002.22 3,553,212.41 12,725,248.99 3,553,212.40 Other non-current assets Total non-current assets 519,522,708.21 788,326,752.37 514,432,291.19 802,511,318.56 Total assets 1,750,595,620.67 1,435,448,059.10 1,523,936,983.79 1,323,177,459.65 Current liabilities: Short-term Loan 690,540,850.00 582,000,000.00 555,000,000.00 495,000,000.00 Amount due to the Central Bank Deposit taking and due from banks Borrowing from banks Transactional financial liabilities Notes payable Accounts payable 111,785,130.72 63,200,617.73 82,618,423.24 27,685,998.17 Advance receipts 6,104,089.36 2,705,237.37 2,012,363.70 1,302,325.64SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 8 Repurchased agreement Service charge and commission receivable Staff’s wages payable 9,295,528.71 0.00 15,503,449.35 6,462,650.00 Taxes payable 21,270,673.02 11,938,988.41 7,825,840.81 10,287,916.08 Interest payable 860,498.61 860,498.61 860,498.61 860,498.61 Dividends payable 584,110.90 0.00 584,110.90 Other payables 29,892,822.39 21,038,134.70 23,025,452.89 22,697,269.81 Accounts receivable reinsurance Insurance contract reserve Acting trading securities Acting underwriting securities Non-current Liabilities due within a Year Other current liabilities 1,280,329.28 Total current liabilities 870,333,703.71 681,743,476.82 688,710,468.78 564,296,658.31 Non-Current Liabilities: Long-term borrowings 90,000,000.00 90,000,000.00 90,000,000.00 90,000,000.00 Bonds payable Long term accounts payable 3,500,000.00 3,500,000.00 Special accounts payable Predicted liabilities Deferred income tax liability 148,162.52 106,989.94 106,989.94 106,989.94 Other non-current liabilities 6,300,000.00 5,800,000.00 6,400,000.00 5,900,000.00 Total non-current liabilities 99,948,162.52 95,906,989.94 100,006,989.94 96,006,989.94 Total liabilities 970,281,866.23 777,650,466.76 788,717,458.72 660,303,648.25 Owners’ equity (or shareholders’ equity): Paid up capital (or capital stock) 249,317,999.00 249,317,999.00 249,317,999.00 249,317,999.00 Capital reserve 191,847,232.65 191,847,232.65 191,847,232.65 191,847,232.65 Less: shares in stock Specialized reserve Surplus reserve 115,946,088.88 115,946,088.88 115,946,088.88 115,946,088.88 General provision for risk Retained earnings 202,167,291.80 100,686,271.81 158,577,089.84 105,762,490.87 Cumulative translation adjustments -919,994.01 -879,943.60 Total owner’s equity attributable to the parent company 758,358,618.32 657,797,592.34 714,808,466.77 662,873,811.40 Minority shareholders’ equity 21,955,136.12 20,411,058.30 Total owners’ equity 780,313,754.44 657,797,592.34 735,219,525.07 662,873,811.40 Total liabilities and owners’ equity 1,750,595,620.67 1,435,448,059.10 1,523,936,983.79 1,323,177,459.65SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 9 4.2 Statement of Profit in the Report Period Prepared by: SHENZHEN FIYTA HOLDINGS LTD. July to September 2010 In RMB Amount in the report period Amount in the previous period Items Consolidated Parent company Consolidated Parent company I. Total operating income 453,527,789.59 83,751,545.27 313,123,034.10 62,361,775.25 Including: operating income 453,527,789.59 83,751,545.27 313,123,034.10 62,361,775.25 Interest income Earned premium Service charge and commission income II. Total operating cost 423,991,436.80 82,085,500.89 287,195,944.14 56,863,091.73 Including: operating costs 314,084,267.50 36,755,799.17 209,684,521.78 25,936,740.82 Interest payment Service charge and commission payment Surrender value Compensation pay-out, net Provision of reserve for insurance contract, net Payment of Policy Dividends Reinsurance expenses Business Taxes and Surcharge 1,689,146.75 1,085,360.75 1,852,627.90 1,083,979.48 Sales expenses 64,617,884.79 26,540,933.90 41,956,314.04 17,232,616.62 Administrative expenses 31,687,145.24 13,188,037.96 24,804,207.11 9,524,549.37 Financial expenses 11,912,992.52 4,515,369.11 8,898,273.31 3,085,205.44 Loss from impairment of assets Add: Income from change of fair value (loss expressed with “-“) Investment income (loss expressed with “-“) 131,025.93 131,025.93 7,617.02 7,617.02 Including: income from investment in associates and joint ventures 131,025.93 131,025.93 7,617.02 7,617.02 Exchange income (loss expressed with “-“) III. Operating Profit (loss expressed with “-“) 29,667,378.72 1,797,070.31 25,934,706.98 5,506,300.54 Plus: Non-operating income 2,006,506.95 1,311,367.99 1,147,988.85 846,565.62 Less: Non-operating expenses 61,087.39 -15,970.48 2,271,270.50 2,105,240.00 Including: Loss from disposal of non-current assets 3,709.60 0.00 0.00 IV. Total profit (total loss expressed with “-“) 31,612,798.28 3,124,408.78 24,811,425.33 4,247,626.16 Less: Income tax expense 5,374,194.56 734,340.10 4,181,173.02 4,396.90 V. Net Profit (net loss 26,238,603.72 2,390,068.68 20,630,252.31 4,243,229.26SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 10 expressed with “-“) Net profit attributable to the parent company’s owner 26,122,530.20 2,390,068.68 20,651,393.66 4,243,229.26 Minority shareholders’ equity 116,073.52 0.00 -21,141.35 0.00 VI. Earnings per share: (I) Basic earnings per share 0.105 0.083 (II) Diluted earnings per share 0.105 0.083 VII. Other comprehensive income -19,241.39 661,687.21 510,400.00 VIII. Total comprehensive income 26,219,362.33 2,390,068.68 21,291,939.52 4,753,629.26 Total comprehensive income attributable to the owner of the parent company 26,097,432.80 2,390,068.68 21,313,080.87 4,753,629.26 Total comprehensive income attributable to minority shareholders 121,929.53 -21,141.35 4.3 Statement of Profit from Year Beginning to the End of the Report Period Prepared by: SHENZHEN FIYTA HOLDINGS LTD. January to September 2010 In RMB Amount in the report period Amount in the previous period Items Consolidated Parent company Consolidated Parent company I. Total operating income 1,264,339,700.40 235,063,961.29 885,816,723.98 190,850,853.60 Including: operating income 1,264,339,700.40 235,063,961.29 885,816,723.98 190,850,853.60 Interest income Earned premium Service charge and commission income II. Total operating costs 1,190,052,152.40 236,753,813.99 827,681,397.96 185,625,944.42 Including: operating costs 879,391,324.14 106,047,954.17 592,630,189.22 83,371,936.76 Interest payment Service charge and commission payment Surrender value Compensation pay-out, net Provision of reserve for insurance contract, net Payment of Policy Dividends Reinsurance expenses Business Taxes and Surcharge 4,768,927.34 3,220,356.88 4,743,875.77 3,226,671.50 Sales expenses 178,173,165.18 77,631,788.12 127,384,669.43 55,105,975.29 Administrative expenses 93,933,505.01 37,841,876.34 73,237,403.62 31,470,465.32 Financial expenses 33,372,981.58 12,011,838.48 29,675,659.92 12,441,295.55 Loss from impairment of assets 412,249.15 9,600.00 9,600.00SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 11 Add: Income from change of fair value (loss expressed with “-“) Investment income (loss expressed with “-“) 131,025.93 13,889,979.73 187,239.61 187,239.61 Including: income from investment in associates and joint ventures 131,025.93 131,025.93 187,239.61 187,239.61 Exchange income (loss expressed with “-“) III. Operating Profit (loss expressed with “-“) 74,418,573.93 12,200,127.03 58,322,565.63 5,412,148.79 Plus: Non-operating income 9,842,062.43 9,055,237.97 3,309,874.86 2,896,996.48 Less: Non-operating expenses 690,461.35 553,438.36 2,300,508.07 2,128,049.31 Including: Loss from disposal of non-current assets 21,237.59 20,570.60 IV. Total profit (total loss expressed with “-“) 83,570,175.01 20,701,926.64 59,331,932.42 6,181,095.96 Less: Income tax expense 14,905,047.83 1,580,672.58 11,095,242.20 355,191.34 V. Net Profit (net loss expressed with “-“) 68,665,127.18 19,121,254.06 48,236,690.22 5,825,904.62 Net profit attributable to the parent company’s owner 68,522,001.86 19,121,254.06 47,818,455.08 5,825,904.62 Minority shareholders’ equity 143,125.32 418,235.14 VI. Earnings per share: (I) Basic earnings per share 0.275 0.192 (II) Diluted earnings per share 0.275 0.192 VII. Other comprehensive income -38,137.91 0.00 2,990,888.54 2,842,400.00 VIII. Total comprehensive income 68,626,989.27 19,121,254.06 51,227,578.76 8,668,304.62 Total comprehensive income attributable to the owner of the parent company 68,481,951.45 19,121,254.06 50,809,343.62 8,668,304.62 Total comprehensive income attributable to minority shareholders 145,037.82 0.00 418,235.14 4.4 Cash Flow Statement from Year Beginning to the End of the Report Period Prepared by: SHENZHEN FIYTA HOLDINGS LTD. January to September 2010 In RMB Amount in the report period Amount in the previous period Items Consolidated Parent company Consolidated Parent company I. Net cash flows arising from operating activities Cash received from sales of goods and supply of labor 1,401,308,543.97 258,468,848.65 997,120,457.55 199,740,823.55 Net increase of customers’ deposit and due from banks Net increase of borrowingsSHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 12 from the central bank Net increase of borrowings from other financial institutions Cash received from former insurance contract premium Net cash received from reinsurance business Net increase of insurance reserve and investment Net increase from disposal of transactional financial asset Cash received from interest, service charge and commission Net increase of borrowings Net increase of fund from repurchases Rebated taxes received 623,119.27 623,119.27 Other operation activity related cash receipts 8,915,624.72 18,314,144.25 6,166,502.94 57,793,203.76 Subtotal of cash flow in from operating activity 1,410,847,287.96 277,406,112.17 1,003,286,960.49 257,534,027.31 Cash paid for purchase of goods and reception of labor services 1,130,704,968.19 102,942,930.99 663,059,526.95 53,020,791.51 Net increase of loans and advances to customers Net increase of due from central bank and due from banks Cash for the former insurance contract indemnity payment Cash paid for interest, service charge and commission Cash paid for insurance policy dividend Cash paid to and for staff 128,977,388.33 52,865,431.19 100,581,984.91 42,822,170.54 Taxes paid 68,102,842.86 16,277,252.02 56,061,859.54 18,296,306.89 Other business related cash payments 141,246,457.27 159,164,557.82 102,424,576.71 48,613,901.62 Subtotal of cash flow out from operating activity 1,469,031,656.65 331,250,172.02 922,127,948.11 162,753,170.56 Net cash flow from operating activities -58,184,368.69 -53,844,059.85 81,159,012.38 94,780,856.75 II. Cash flows arising from investment activities: Cash received from recovery of investment Cash received from investment income 5,358,953.80 Net amount of cash received from disposal of fixed assets, intangible assets and 15,082,340.00 15,078,240.00 182,656.00 180,956.00SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 13 other long term assets Net cash received from disposal of subsidiaries and other operating units Other investment related cash receipts 430.99 Subtotal of cash flow in from investment activity 15,082,770.99 20,437,193.80 182,656.00 180,956.00 Cash paid for construction/purchase of fixed assets, intangible assets and other long term assets 34,499,514.29 4,582,177.60 35,064,313.73 8,346,348.47 Cash paid for investment 7,942,195.00 10,000,000.00 Net increase of hypothecated loans Net cash received from payment by subsidiaries and other operating units Other investment related cash payments Subtotal of cash flow out from investment activity 42,441,709.29 4,582,177.60 35,064,313.73 18,346,348.47 Net cash flow arising from investment activities -27,358,938.30 15,855,016.20 -34,881,657.73 -18,165,392.47 III. Cash flows arising from fund raising activities: Cash received from absorption of investment 1,340,184.00 Incl.: Cash received from subsidiaries’ absorption of minority shareholders’ investment Cash received from borrowings 520,540,850.00 442,000,000.00 445,000,000.00 425,000,000.00 Cash received from bond issuing Other fund-raising related cash receipts Subtotal of cash flow in from fund raising activity 520,540,850.00 442,000,000.00 446,340,184.00 425,000,000.00 Cash paid for liabilities repayment 385,000,000.00 355,000,000.00 465,000,000.00 465,000,000.00 Cash paid for dividend/profit distribution or repayment of interest 50,609,192.10 47,764,749.71 50,034,904.83 49,572,404.83 Including: Dividend and profit paid by subsidiaries to minority shareholders Other fund-raising related cash payments 1,028,437.80 1,000,000.00 Subtotal of cash flow out from fund raising activity 436,637,629.90 403,764,749.71 515,034,904.83 514,572,404.83 Net cash flow arising from fund-raising activities 83,903,220.10 38,235,250.29 -68,694,720.83 -89,572,404.83 IV. Influence from change of exchange rate upon cash and -52,173.97SHENZHEN FIYTA HOLDINGS LTD. 2010 3rd Quarterly Report – Full Text 14 cash equivalents V. Net increase of cash and cash equivalents -1,692,260.86 246,206.64 -22,417,366.18 -12,956,940.55 Plus: Balance of cash and cash equivalents at the beginning of the period 95,701,580.19 46,560,890.55 108,233,795.73 54,938,436.99 VI. Balance of cash and cash equivalents at the end of the period 94,009,319.33 46,807,097.19 85,816,429.55 41,981,496.44 4.5 Audit Report Audit opinion: Unaudited