FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text FIYTA HOLDINGS LTD. 2018 Third Quarterly Report October, 2018 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Section 1 Important Notice The Board of Directors, the Supervisory Committee, directors, supervisors and senior executives hereby individually and collectively accept responsibility for the correctness, accuracy and completeness of the contents of this report and confirm that there are neither material omissions nor errors which would render any statement misleading. All the directors attended the board meeting for reviewing the Quarterly Report. Huang Yongfeng, the Company leader, Chen Zhuo, chief financial officer, and Tian Hui, the manager of the accounting department (treasurer) hereby confirm the authenticity and completeness of the financial report enclosed in this Quarterly Report. 1 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Section 2 Company Profile I. Summary of Accounting/Financial Data Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years? No Increase/decrease at the end of End of the reporting period End of the previous year the year over the end of the previous year Total assets (in CNY) 3,617,355,221.85 3,579,789,692.90 1.05% Net profit attributable to the Company’s 2,551,130,509.85 2,467,967,361.20 3.37% shareholders, in CNY Increase/decrease from the year beginning to the Year-on-year From the year beginning end of the reporting Reporting period increase/decrease in the to the end of the period over the same reporting period reporting period period of the previous year Revenue in CNY 868,796,654.10 -0.84% 2,564,688,086.82 3.60% Net profit attributable to the Company’s 50,293,172.83 0.91% 162,661,094.27 19.12% shareholders, in CNY Net profit attributable to the Company’s shareholders less the non-recurring 48,421,717.54 -2.09% 148,181,088.71 9.44% items, in CNY Net cash flows arising from operating -- -- 290,588,474.72 -20.02% activities, in CNY Basic earning per share (CNY/share) 0.1146 0.88% 0.3707 19.12% Diluted earning per share (CNY/share) 0.1146 0.88% 0.3707 19.12% Return on equity, weighted average 2.09% 4.05% 6.55% 15.59% Non-recurring gain/loss items and the amount involved In CNY Amount from the year beginning Items Notes to the end of the reporting period Gain/loss from disposal of non-current assets, including the part offset -66,731.60 from the provision for impairment of assets. Government subsidy credited to the current gain and loss (except the government subsidies closely related with the Company’s business and 8,857,885.99 enjoyable according to the unified standard quota or fixed amount 2 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text specified by the central government). Reversal of the provision for impairment of accounts receivable which Recovery of the account receivable 7,533,121.86 underwent separate impairment testing written off in the previous year Other various non-operating revenue and expenditure with the aforesaid -296.65 items exclusive Less: Amount affected by the income tax 1,843,974.04 Total 14,480,005.56 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses which have been defined as recurring gains and losses, it is necessary to explain the reason. Inapplicable II. Statement of total shareholders and shares held by the top 10 shareholders by the end of the reporting period 1. Statement of total ordinary shareholders and the preferred shareholders with their voting power recovered and the shares held by the top 10 shareholders In shares Total preferred shareholders with Total common shareholders at the end of their voting power recovered at 32,369 0 the reporting period the end of the reporting period (if any) Shareholding by top 10 shareholders Number of the Pledging or freezing Names of the Nature of the Shareholding Shareholding restricted shares Status of the Shareholders shareholder proportion quantity Quantity held shares AVIC International State corporate 37.15% 162,977,327 0 Holding Limited Domestic natural Wan Zhongbo 2.62% 11,485,227 0 person National Social Domestic Security Fund 114 non-state-owned 2.20% 9,657,744 0 Portfolio corporate Domestic natural #Yang Zugui 2.17% 9,500,969 0 person Chongqing Domestic International Trust non-state-owned 1.39% 6,120,391 0 Co., Ltd. - corporate RONGXINTONG 3 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Series Unitrust No.10 Chongqing Domestic International Trust non-state-owned 1.36% 5,982,200 0 Co., Ltd. - YUXIN corporate Trust No.2 Xizang Investment State corporate 1.13% 4,976,551 0 Co., Ltd. MANULIFE TEDA Fund- Minsheng Bank-MANULIFE TEDA Value Domestic Growth Oriented non-state-owned 1.12% 4,893,559 0 Additional Issue corporate No. 351 Assets Management Program Industrial and Commercial Bank of China Co., Ltd. - FUGUO TIANHUI Domestic Selected Growth non-state-owned 0.95% 4,177,282 0 Growth Mixed corporate Securities Investment Fund (LOF) Shenzhen Heli Domestic Fengyuan non-state-owned 0.75% 3,300,000 0 Commerce & Trade corporate Co., Ltd. Shares held by top 10 shareholders of unrestricted shares Share type Names of the Shareholders Quantity of unrestricted shares held Share type Quantity CNY ordinary AVIC International Holding Limited 162,977,327 162,977,327 shares CNY ordinary Wan Zhongbo 11,485,227 11,485,227 shares National Social Security Fund 114 CNY ordinary 9,657,744 9,657,744 Portfolio shares CNY ordinary #Yang Zugui 9,500,969 9,500,969 shares 4 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Chongqing International Trust Co., Ltd. - CNY ordinary 6,120,391 6,120,391 RONGXINTONG Series Unitrust No.10 shares Chongqing International Trust Co., Ltd. - CNY ordinary 5,982,200 5,982,200 YUXIN Trust No.2 shares CNY ordinary Xizang Investment Co., Ltd. 4,976,551 4,976,551 shares MANULIFE TEDA Fund- Minsheng Bank-MANULIFE TEDA Value Growth CNY ordinary 4,893,559 4,893,559 Oriented Additional Issue No. 351 Assets shares Management Program Industrial and Commercial Bank of China Co., Ltd. - FUGUO TIANHUI CNY ordinary 4,177,282 4,177,282 Selected Growth Growth Mixed shares Securities Investment Fund (LOF) Shenzhen Heli Fengyuan Commerce & CNY ordinary 3,300,000 3,300,000 Trade Co., Ltd. shares Of the top 10 shareholders, both Chongqing International Trust Co., Ltd. - Rongxintong Serial Order - Explanation on associated relationship No. 10 Trust and Chongqing International Trust Co., Ltd. - YUXINTrust No. 2 are subsidiaries of or consistent action of the above Chongqing International Trust Co., Ltd. Both of them are holding 12,102,591 shares in total in the shareholders Company, which takes 2.76% of the Company's total shares. Did the top ten common shareholders or top ten shareholders of unrestricted common shares conduct contractual repurchase during the reporting period? No 2. Total preferred shareholders and the shares held by the top 10 preferred shareholders Inapplicable 5 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Section 3 Significant Events I. Changes of the major financial data and financial indicators during the reporting period and the causes (I) Balance sheet items Opening Proportion of Items Ending balance Cause of the movement balance changes Notes receivable and Mainly due to increase of the accounts receivable 447,658,811.44 335,948,508.62 33.25% accounts receivable for goods at the end of the reporting period Mainly due to increase of the cash deposit and Other receivables 45,889,700.23 34,990,539.09 31.15% expense payment to be cleared at the end of the reporting period. Mainly due to increase of the accrued expenses at Other payables 90,821,473.07 59,232,265.75 53.33% the end of the reporting period Other comprehensive income -3,272,411.80 -11,523,442.39 71.60% Mainly due to movement of the translation reserve (II) Items of the profit statement in the reporting period Amount incurred Amount Proportion of Items in the reporting incurred in the Cause of the movement changes period previous period It was mainly due to decrease of the bank loans Financial expenses - interest 6,789,639.39 10,290,602.12 -34.02% over the same period of the previous year during expenses the reporting period It was due to decrease of the provision for bad debt Loss from impairment of and provision for price falling of inventories over the 268,853.55 8,416,056.39 -96.81% assets same period of the previous year in the reporting period. It was due to increase of the government subsidies Other income 2,360,867.19 936,793.49 152.02% received in the reporting period Net of other comprehensive 9,644,276.18 -5,344,611.15 280.45% Mainly due to movement of the translation reserve income after tax (III) Items of the profit statement from the year beginning to the end of the reporting period Amount incurred Amount incurred Proportion of Items in the reporting in the previous Cause of the movement changes period period It was mainly due to decrease of the bank loans Financial expenses - interest 21,062,682.52 33,537,532.63 -37.20% over the same period of the previous year during expenses the reporting period It was due to decrease of the provision for bad debt Loss from impairment of assets -3,144,146.56 21,199,745.69 -114.83% and provision for price falling of inventories over the 6 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text same period of the previous year in the reporting period. It was due to increase of the government subsidies Other income 8,857,885.99 2,414,836.49 266.81% received in the reporting period Net of other comprehensive 8,251,321.19 1,741,879.37 373.70% Mainly due to movement of the translation reserve income after tax (IV) Items of the cash flow statement from the year beginning to the end of the reporting period Amount incurred Amount incurred Proportion of Items in the reporting in the previous Cause of the movement changes period period It was due to increase of the export rebates Rebated taxes received 4,010,283.82 863,877.72 364.22% received in the reporting period Other business activity related It was mainly due to the government subsidies receipts 34,995,312.97 24,629,308.80 42.09% received in the reporting period Relevant cash It was due to increase of the dividend distributed in Cash paid for dividend/profit the current year over the previous year and at the distribution or repayment of 110,277,877.06 76,460,575.01 44.23% same time decrease of the interest paid for the interest bank loan over the same period of the previous year. Cash flows arising from It was mainly due to decrease of the bank loans fund-raising activities -191,101,925.83 -422,748,445.73 54.80% over the same period of the previous year during Net cash flow the reporting period It was mainly due to decrease of the bank loans Net cash and cash equivalents 11,243,794.77 -145,502,390.65 107.73% over the same period of the previous year during Amount increased the reporting period II. Progress of significant events, their effects and analysis on the solutions Inapplicable III. Commitments unfinished in implementation by the Company's actual controller, shareholders, related parties, acquirer and the Company, etc. in the reporting period Inapplicable IV. Prediction of the Performances in Year 2018 Inapplicable V. Portfolio investment Inapplicable VI. Entrusted financial management 7 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Inapplicable VII. Investment in derivatives Inapplicable VIII. Registration of the activities of reception of investigators, communications, interviews, etc. during the reporting period Inapplicable IX. Outward guarantee against regulations Inapplicable X. The Company's funds occupied by its controlling shareholder or/and related parties for non-operating purpose Inapplicable 8 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Section 4. Financial Statements I. Financial Statements 1. Consolidated Balance Sheet Prepared by FIYTA Holdings Ltd. September 30, 2018 In CNY Items Ending balance Opening balance Current assets: Monetary capital 198,396,686.09 187,152,891.32 Settlement reserve Inter-bank lending Financial assets which is measured based on the fair value and whose movement is counted to the current gain/loss Derivative financial assets Notes receivable and accounts receivable 447,658,811.44 335,948,508.62 Where: Notes receivable 6,153,469.16 9,693,883.68 Accounts receivable 441,505,342.28 326,254,624.94 Advance payments 30,813,702.67 24,663,314.53 Receivable premium Reinsurance accounts receivable Reserve for reinsurance contract receivable Other receivables 45,889,700.23 34,990,539.09 Redemptory monetary capital for sale Inventories 1,719,468,473.32 1,820,526,676.26 Held-for-sale assets Non-current assets due within a year Other current assets 29,170,827.65 24,616,815.21 Total current assets 2,471,398,201.40 2,427,898,745.03 Non-current assets: Provision of loans and advance in cash Available-for-sale financial assets 85,000.00 85,000.00 9 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Held-to-due investments Long-term accounts receivable Long-term equity investment 43,972,531.47 43,879,518.09 Investment real estate 345,621,944.56 305,493,987.77 Fixed assets 461,097,481.02 523,699,592.65 Construction-in-process 12,665,238.28 10,947,300.53 Productive biological asset Oil and gas assets Intangible assets 44,255,220.33 44,223,280.21 Development expenses Goodwill Long-term expenses to be apportioned 119,471,578.84 109,409,785.49 Deferred income tax asset 108,816,166.62 105,905,944.80 Other non-current assets 9,971,859.33 8,246,538.33 Total non-current assets 1,145,957,020.45 1,151,890,947.87 Total assets 3,617,355,221.85 3,579,789,692.90 Current liabilities: Short term borrowings 464,922,149.78 525,990,510.00 Borrowings from central bank Deposits taking and interbank placement Loans from other banks Financial liabilities measured based on the fair value and whose change was charged to the current gain and loss. Derivative financial liabilities Notes payable and accounts payable 261,474,973.99 263,256,495.65 Advances from customers 19,322,876.99 15,141,587.79 Funds from selling out and repurchasing financial assets Service charge and commission payable Salaries payable to the employees 56,698,214.43 71,564,367.14 Taxes payable 69,816,088.11 55,857,236.59 Other payables 90,821,473.07 59,232,265.75 Payable reinsurance Reserve for insurance contract 10 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Acting trading securities Income from securities underwriting on commission Held-for-sale liabilities Non-current liabilities due within a year 35,000,000.00 35,000,000.00 Other current liabilities Total current liabilities 998,055,776.37 1,026,042,462.92 Non-current liabilities: Long-term borrowings 62,383,129.25 79,870,353.00 Bonds payable Including: preferred shares Perpetual bond Long-term accounts payable Long-term accrued payroll Predicted liabilities Deferred income 5,780,000.00 5,904,000.00 Deferred income tax liability Other non-current liabilities Total non-current liabilities 68,163,129.25 85,774,353.00 Total liabilities 1,066,218,905.62 1,111,816,815.92 Owner’s equity: Capital Stock 438,744,881.00 438,744,881.00 Other equity instruments Including: preferred shares Perpetual bond Capital Reserve 1,062,455,644.22 1,062,455,644.22 Less: shares in stock Other comprehensive income -3,272,411.80 -11,523,442.39 Special reserve Surplus Reserve 206,805,713.35 206,805,713.35 Reserve against general risks Retained earnings 846,396,683.08 771,484,565.02 Total owners’ equity attributable to the parent 2,551,130,509.85 2,467,967,361.20 company Minority shareholders’ equity 5,806.38 5,515.78 11 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Total owner’s equity 2,551,136,316.23 2,467,972,876.98 Total liabilities and owners’ equity 3,617,355,221.85 3,579,789,692.90 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 2. Balance Sheet (Parent Company) In CNY Items Ending balance Opening balance Current assets: Monetary capital 176,044,667.47 131,163,944.43 Financial assets which is measured based on the fair value and whose movement is counted to the current gain/loss Derivative financial assets Notes receivable and accounts receivable 492,234.98 6,832,006.11 Where: Notes receivable Accounts receivable 492,234.98 6,832,006.11 Advance payments Other receivables 686,418,109.71 831,952,437.86 Inventories Held-for-sale assets Non-current assets due within a year Other current assets 10,893,702.66 9,089,170.12 Total current assets 873,848,714.82 979,037,558.52 Non-current assets: Available-for-sale financial assets 85,000.00 85,000.00 Held-to-due investments Long-term accounts receivable Long-term equity investment 1,375,221,122.40 1,375,128,109.02 Investment real estate 262,601,939.80 270,241,724.52 Fixed assets 331,369,718.15 340,765,873.45 Construction-in-process 12,665,238.28 10,947,300.53 Productive biological asset Oil and gas assets Intangible assets 36,108,084.68 36,932,963.95 12 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Development expenses Goodwill Long-term expenses to be apportioned 4,808,236.28 4,418,287.94 Deferred income tax asset 1,499,126.32 1,499,126.32 Other non-current assets 1,795,456.03 2,687,910.84 Total non-current assets 2,026,153,921.94 2,042,706,296.57 Total assets 2,900,002,636.76 3,021,743,855.09 Current liabilities: Short term borrowings 435,000,000.00 470,000,000.00 Financial liabilities measured based on the fair value and whose change was charged to the current gain and loss. Derivative financial liabilities Notes payable and accounts payable 57,586,340.48 60,520,874.66 Advances from customers 4,773,612.61 4,212,930.07 Salaries payable to the employees 7,870,513.62 9,291,422.00 Taxes payable 2,579,880.35 1,038,481.26 Other payables 42,961,861.08 21,596,100.44 Held-for-sale liabilities Non-current liabilities due within a year 35,000,000.00 35,000,000.00 Other current liabilities Total current liabilities 585,772,208.14 601,659,808.43 Non-current liabilities: Long-term borrowings 57,361,928.00 74,861,928.00 Bonds payable Including: preferred shares Perpetual bond Long-term accounts payable Long-term accrued payroll Predicted liabilities Deferred income 5,780,000.00 5,904,000.00 Deferred income tax liability Other non-current liabilities Total non-current liabilities 63,141,928.00 80,765,928.00 Total liabilities 648,914,136.14 682,425,736.43 13 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Owner’s equity: Capital Stock 438,744,881.00 438,744,881.00 Other equity instruments Including: preferred shares Perpetual bond Capital Reserve 1,068,111,185.32 1,068,111,185.32 Less: shares in stock Other comprehensive income Special reserve Surplus Reserve 206,805,713.35 206,805,713.35 Retained earnings 537,426,720.95 625,656,338.99 Total owner’s equity 2,251,088,500.62 2,339,318,118.66 Total liabilities and owners’ equity 2,900,002,636.76 3,021,743,855.09 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 3. Consolidated profit statement in the reporting period In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Turnover 868,796,654.10 876,113,517.26 Including: operating income 868,796,654.10 876,113,517.26 Interest income Earned insurance premium Service charge and commission income II. Total operating costs 805,686,004.43 811,930,483.19 Including: Operating costs 505,885,393.78 512,791,871.39 Interest payment Service charge and commission payment Surrender Value Compensation expenses, net Provision of reserve for insurance contract, net 14 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Payment of policy dividend Reinsurance expenses Taxes and surcharges 7,454,053.56 7,962,036.51 Sales cost 214,879,689.40 205,086,341.20 Administrative expenses 56,100,640.10 51,955,309.90 R & D expenditures 11,955,136.46 12,941,533.47 Financial expenses 9,142,237.58 12,777,334.33 Where: Interest cost 6,789,639.39 10,290,602.12 Interest income 643,817.82 722,695.23 Loss from impairment of 268,853.55 8,416,056.39 assets Plus: Other income 2,360,867.19 936,793.49 Investment income (loss is stated with “-“) Including: return on investment in associate and joint venture Income from change of fair value (loss is stated with “-”) Exchange income (loss stated with “-“) Income from disposal of assets -12,324.44 -187,228.60 (loss is stated with “-“) III. Operating Profit (loss is stated with “-“) 65,459,192.42 64,932,598.96 Plus: Non-operating income 190,581.65 52,184.65 Less: Non-operating expenses 88,215.28 382,639.21 IV. Total profit (total loss is stated with “-”) 65,561,558.79 64,602,144.40 Less: Income tax expense 15,268,385.96 15,078,018.06 V. Net Profit (net loss is stated with “-“) 50,293,172.83 49,524,126.34 (I) Net Profit from sustainable 50,293,172.83 49,524,126.35 operation (net loss is stated with “-“) (II) Net profit from termination of business operation (net loss is stated with “-“) Net profit attributable to the parent 50,293,172.83 49,839,227.96 company’s owner Minority shareholders’ gain/loss -315,101.62 15 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text VI. Net of other comprehensive income after 9,644,276.18 -5,344,611.14 tax Net of other comprehensive income after tax attributable to the parent company’s 9,643,950.34 -5,228,715.27 owner (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method (II) Other comprehensive income which shall be re-classified into gain and 9,643,950.34 -5,228,715.27 loss 1. Other comprehensive income which can be converted into gain and loss based on the equity method 2. Gain/loss from change in the fair value of the financial assets available for sale 3. Gain/loss from which the held-to-maturity investment is re-classified as available-for-sale financial assets 4. Valid part of the gain/loss from cash flow hedge 5. Conversion difference in 9,643,950.34 -5,228,715.27 foreign currency statements 6. Others Net amount of other comprehensive income after tax attributable to minority 325.84 -115,895.87 shareholders VII. Total comprehensive income 59,937,449.01 44,179,515.20 Total comprehensive income 59,937,123.17 44,610,512.69 attributable to the parent company’s owner Total comprehensive income 325.84 -430,997.49 attributable to minority shareholders VIII. Earnings per share: 16 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text (I) Basic earnings per share 0.1146 0.1136 (II) Diluted earnings per share 0.1146 0.1136 For the enterprises under the same control consolidated in the reporting period, the net profit realized by the consolidee before the consolidation is CNY 0.00. Net profit realized by the consolidatee in the previous period is CNY 0.00. Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 4. Profit statement of the parent company in the reporting period In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Revenue 28,462,045.84 27,263,052.24 Less: Operating cost 3,966,158.08 4,615,106.22 Taxes and surcharges 1,077,631.80 1,306,737.51 Sales cost Administrative expenses 16,788,796.26 12,119,794.38 R & D expenditures 5,939,757.96 10,253,463.39 Financial expenses 3,246,486.94 2,644,287.94 Where: Interest cost 3,063,446.70 3,015,267.50 Interest income 572,936.96 297,371.88 Loss from impairment of assets Plus: Other income 1,523,301.89 900.00 Investment income (loss is stated with “-“) Including: return on investment in -38,246.82 associate and joint venture Income from change of fair value (loss is stated with “-”) Income from disposal of assets -38,246.82 (loss is stated with “-“) II. Operating Profit (loss is stated with “-“) -1,033,483.31 -3,713,684.02 Plus: Non-operating income Less: Non-operating expenses 0.90 300,029.00 III. Total profit (total loss is stated with “-“) -1,033,484.21 -4,013,713.02 Less: Income tax expense -1,041,658.25 IV. Net Profit (net loss is stated with “-“) -1,033,484.21 -2,972,054.77 17 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text (I) Net Profit from sustainable -1,033,484.21 -2,972,054.77 operation (net loss is stated with “-“) (II) Net profit from termination of business operation (net loss is stated with “-“) V. Net of other comprehensive income after tax (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method (II) Other comprehensive income which shall be re-classified into gain and loss 1. Other comprehensive income which can be converted into gain and loss based on the equity method 2. Gain/loss from change in the fair value of the financial assets available for sale 3. Gain/loss from which the held-to-maturity investment is re-classified as available-for-sale financial assets 4. Valid part of the gain/loss from cash flow hedge 5. Conversion difference in foreign currency statements 6. Others VI. Total comprehensive income -1,033,484.21 -2,972,054.77 VII. Earnings per share: (I) Basic earnings per share -0.0024 -0.0067 (II) Diluted earnings per share -0.0024 -0.0067 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 18 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text 5. Consolidated Profit Statement from the year beginning to the end of the reporting period In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Turnover 2,564,688,086.82 2,475,654,661.61 Including: operating income 2,564,688,086.82 2,475,654,661.61 Interest income Earned insurance premium Service charge and commission income II. Total operating costs 2,362,178,677.99 2,300,032,696.40 Including: Operating costs 1,482,211,130.13 1,454,271,556.22 Interest payment Service charge and commission payment Surrender Value Compensation expenses, net Provision of reserve for insurance contract, net Payment of policy dividend Reinsurance expenses Taxes and surcharges 25,244,839.99 23,143,533.79 Sales cost 636,992,731.09 599,372,662.99 Administrative expenses 160,343,031.79 128,181,081.76 R & D expenditures 33,241,062.48 34,886,148.56 Financial expenses 27,290,029.07 38,977,967.39 Where: Interest cost 21,062,682.52 33,537,532.63 Interest income 1,723,404.90 2,212,562.68 Loss from impairment of -3,144,146.56 21,199,745.69 assets Plus: Other income 8,857,885.99 2,414,836.49 Investment income (loss is stated 93,013.38 188,871.89 with “-“) Including: return on investment in 93,013.38 188,871.89 associate and joint venture Income from change of fair value 19 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text (loss is stated with “-”) Exchange income (loss stated with “-“) Income from disposal of assets -66,731.60 -200,581.55 (loss is stated with “-“) III. Operating Profit (loss is stated with “-“) 211,393,576.60 178,025,092.04 Plus: Non-operating income 554,441.16 198,051.56 Less: Non-operating expenses 554,737.81 1,043,829.65 IV. Total profit (total loss is stated with “-”) 211,393,279.95 177,179,313.95 Less: Income tax expense 48,732,185.68 41,043,403.06 V. Net Profit (net loss is stated with “-“) 162,661,094.27 136,135,910.89 (I) Net Profit from sustainable 162,661,094.27 136,135,910.89 operation (net loss is stated with “-“) (II) Net profit from termination of business operation (net loss is stated with “-“) Net profit attributable to the parent 162,661,094.27 136,548,052.72 company’s owner Minority shareholders’ gain/loss -412,141.83 VI. Net of other comprehensive income after 8,251,321.19 1,741,879.37 tax Net of other comprehensive income after tax attributable to the parent company’s 8,251,030.59 1,939,829.31 owner (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method (II) Other comprehensive income which shall be re-classified into gain and 8,251,030.59 1,939,829.31 loss 1. Other comprehensive income which can be converted into gain and loss based on the equity method 20 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text 2. Gain/loss from change in the fair value of the financial assets available for sale 3. Gain/loss from which the held-to-maturity investment is re-classified as available-for-sale financial assets 4. Valid part of the gain/loss from cash flow hedge 5. Conversion difference in 8,251,030.59 1,939,829.31 foreign currency statements 6. Others Net amount of other comprehensive income after tax attributable to minority 290.60 -197,949.94 shareholders VII. Total comprehensive income 170,912,415.46 137,877,790.26 Total comprehensive income 170,912,124.86 138,487,882.03 attributable to the parent company’s owner Total comprehensive income 290.60 -610,091.77 attributable to minority shareholders VIII. Earnings per share: (I) Basic earnings per share 0.3707 0.3112 (II) Diluted earnings per share 0.3707 0.3112 For the enterprises under the same control consolidated in the reporting period, the net profit realized by the consolidee before the consolidation is CNY 0.00. Net profit realized by the consolidatee in the previous period is CNY 0.00. Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 6. Profit statement of the parent company from the year beginning to the end of the reporting period In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Revenue 84,581,680.02 78,617,476.17 Less: Operating cost 13,544,702.78 13,233,987.77 Taxes and surcharges 3,283,993.87 3,164,461.73 Sales cost 5,024,222.36 Administrative expenses 48,103,773.92 36,000,455.91 21 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text R & D expenditures 16,261,936.11 20,117,445.63 Financial expenses 6,800,487.30 8,490,598.99 Where: Interest cost 7,298,145.33 9,506,264.31 Interest income 1,283,699.17 1,020,073.12 Loss from impairment of assets Plus: Other income 3,121,301.89 754,900.00 Investment income (loss is stated 93,013.38 188,871.89 with “-“) Including: return on investment in 93,013.38 188,871.89 associate and joint venture Income from change of fair value (loss is stated with “-”) Income from disposal of assets -13,917.68 -38,246.82 (loss is stated with “-“) II. Operating Profit (loss is stated with “-“) -212,816.37 -6,508,171.15 Plus: Non-operating income 9,480.00 35,879.89 Less: Non-operating expenses 446,782.97 320,029.00 III. Total profit (total loss is stated with “-“) -650,119.34 -6,792,320.26 Less: Income tax expense -169,477.50 -2,829,509.08 IV. Net Profit (net loss is stated with “-“) -480,641.84 -3,962,811.18 (I) Net Profit from sustainable -480,641.84 -3,962,811.18 operation (net loss is stated with “-“) (II) Net profit from termination of business operation (net loss is stated with “-“) V. Net of other comprehensive income after tax (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method (II) Other comprehensive income which shall be re-classified into gain and loss 22 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text 1. Other comprehensive income which can be converted into gain and loss based on the equity method 2. Gain/loss from change in the fair value of the financial assets available for sale 3. Gain/loss from which the held-to-maturity investment is re-classified as available-for-sale financial assets 4. Valid part of the gain/loss from cash flow hedge 5. Conversion difference in foreign currency statements 6. Others VI. Total comprehensive income -480,641.84 -3,962,811.18 VII. Earnings per share: (I) Basic earnings per share -0.0011 -0.0090 (II) Diluted earnings per share -0.0011 -0.0090 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 7. Consolidated cash flow statement from the year beginning to the end of the reporting period In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Cash flows arising from operating activities Cash received from sales of goods 2,803,068,270.63 2,792,775,081.25 and supply of labor service Net increase of customers’ deposit and due from banks Net increase of borrowings from the central bank Net increase of borrowings from other financial institutions Cash received from the premium of the original insurance contract Net cash received from the 23 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text reinsurance business Net increase of the reserve from policy holders and investment Net increase from disposal of financial assets which is measured based on the fair value and whose movement is counted to the current gain/loss Cash received from interest, service charge and commission Net increase of loan from other banks Net increase of fund from repurchase business Rebated taxes received 4,010,283.82 863,877.72 Other operation activity related cash 34,995,312.97 24,629,308.80 receipts Subtotal of cash flow in from operating 2,842,073,867.42 2,818,268,267.77 activity Cash paid for purchase of goods and 1,540,691,872.50 1,544,513,523.88 reception of labor services Net increase of loans and advances to customers Net increase of due from central bank and due from banks Cash from payment for settlement of the original insurance contract Cash paid for interest, service charge and commission Cash for payment of policy dividend Cash paid to and for staff 444,077,098.36 387,000,554.27 Taxes paid 235,578,269.66 200,395,453.26 Other business activity related cash 331,138,152.18 323,042,776.87 payments Subtotal of cash flow out from operating 2,551,485,392.70 2,454,952,308.28 activity Net cash flows arising from operating 290,588,474.72 363,315,959.49 activities II. Cash flows arising from investment activities: 24 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Cash received from recovery of investment Cash received from investment income Net cash from disposal of fixed assets and intangible asset and recovery of other 28,712.31 1,167,247.92 Long-term assets Net cash received from disposal of subsidiaries and other operating units Other investment related cash receipts Subtotal of cash flow in from investment 28,712.31 1,167,247.92 activity Cash paid for purchase/construction of fixed assets, Intangible assets and other 88,993,938.27 85,209,670.21 Long-term assets Cash paid for investment Net increase of the pledged loan Net cash paid for acquisition of subsidiaries and other operation units Other investment related cash payments Subtotal of cash flow out from investment 88,993,938.27 85,209,670.21 activity Net cash flow arising from investment -88,965,225.96 -84,042,422.29 activities III. Cash flows arising from fund-raising activities Cash received from absorbing investment Incl.: Cash received from the subsidiaries’ absorption of minority shareholders’ investment Cash received from loans 519,176,123.11 495,432,500.00 Cash received from bond issuing Other fund-raising related cash receipts Subtotal of cash flow in from fund-raising 519,176,123.11 495,432,500.00 activity 25 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Cash paid for debt repayment 600,000,171.88 841,720,370.72 Cash paid for dividend/profit 110,277,877.06 76,460,575.01 distribution or repayment of interest Including: Dividend and profit paid by the subsidiaries to minority shareholders Cash paid for other financing activities Sub-total cash flow paid for financing 710,278,048.94 918,180,945.73 activities Net cash flows arising from fund-raising -191,101,925.83 -422,748,445.73 activities IV. Change of exchange rate influencing the 722,471.84 -2,027,482.12 cash and cash equivalent V. Net increase of cash and cash 11,243,794.77 -145,502,390.65 equivalents Plus: Opening balance of cash and 184,947,891.32 427,227,755.81 cash equivalents VI. Ending balance of cash and cash 196,191,686.09 281,725,365.16 equivalents Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 8. Cash flow statement of the parent company from the year beginning to the end of the reporting period In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Net cash flows arising from operating activities Cash received from sales of goods 88,176,155.56 83,065,809.42 and supply of labor service Rebated taxes received Other operation activity related cash 2,007,440,429.50 371,702,310.58 receipts Subtotal of cash flow in from operating 2,095,616,585.06 454,768,120.00 activity Cash paid for purchase of goods and reception of labor services Cash paid to and for staff 46,814,508.80 42,393,494.11 Taxes paid 6,849,978.67 7,632,305.47 26 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Other business activity related cash 1,822,666,271.46 19,722,463.57 payments Subtotal of cash flow out from operating 1,876,330,758.93 69,748,263.15 activity Net cash flows arising from operating 219,285,826.13 385,019,856.85 activities II. Cash flows arising from investment activities: Cash received from recovery of investment Cash received from investment income Net cash from disposal of fixed assets and intangible asset and recovery of other 25,600.00 Long-term assets Net cash received from disposal of subsidiaries and other operating units Other investment related cash receipts Subtotal of cash flow in from investment 25,600.00 activity Cash paid for purchase/construction of fixed assets, Intangible assets and other 12,890,414.26 35,452,627.12 Long-term assets Cash paid for investment Net cash paid for acquisition of 38,927,328.35 subsidiaries and other operation units Other investment related cash payments Subtotal of cash flow out from investment 12,890,414.26 74,379,955.47 activity Net cash flows arising from investment -12,890,414.26 -74,354,355.47 activities III. Cash flows arising from fund-raising activities Cash received from absorbing investment Cash received from loans 490,000,000.00 460,000,000.00 Cash received from bond issuing 27 FIYTA HOLDINGS LTD. 2018 Third Quarterly Report, Full Text Other fund-raising related cash receipts Subtotal of cash flow in from fund-raising 490,000,000.00 460,000,000.00 activity Cash paid for debt repayment 542,500,000.00 754,000,000.00 Cash paid for dividend/profit 109,093,581.84 71,662,219.12 distribution or repayment of interest Cash paid for other financing activities Sub-total cash flow paid for financing 651,593,581.84 825,662,219.12 activities Net cash flows arising from fund-raising -161,593,581.84 -365,662,219.12 activities IV. Change of exchange rate influencing the 78,893.01 -76,689.78 cash and cash equivalent V. Net increase of cash and cash 44,880,723.04 -55,073,407.52 equivalents Plus: Opening balance of cash and 128,958,944.43 269,372,926.47 cash equivalents VI. Ending balance of cash and cash 173,839,667.47 214,299,518.95 equivalents Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui II. Auditors’ Report Has the third quarterly report been audited No 28