Chongqing Jianshe Motorcycle Co., Ltd. The Third Quarterly Report 2017 Stock code: 200054 Stock Abbreviation: Jianmo B Announcement No.: 2017-068 Chongqing Jianshe Motorcycle Co., Ltd. The Third Quarterly Report 2017 1 Chongqing Jianshe Motorcycle Co., Ltd. The Third Quarterly Report 2017 1 Important notes The Board of Directors,the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report. All of the directors presented the board meeting at which this Quarterly Report was examined. Mr. Lv Hongxian, The Company Leader, Mr. Xue Gangyi , Chief financial officer and the Ms.Niu Yanli, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in the report. 2 Chongqing Jianshe Motorcycle Co., Ltd. The Third Quarterly Report 2017 II. Basic Information of the Company I.Main accounting data and financial Index Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not. □ Yes √ No As at the end of the Changed (%)over end of As at the end of last year reporting period prev. year Gross assets(RMB) 1,297,120,004.57 1,559,334,881.03 -16.82% Net assets attributable to the shareholders of the listed company 282,986,291.66 268,383,091.65 5.44% (RMB) Increase/decrease over Between beginning of Changed (%)over Reporting period the same period of last the year to the end of end of prev. year year(%) the report period Operating income(RMB) 213,507,572.24 -4.18% 763,581,830.08 10.50% Net profit attributable to the shareholders of the listed company 3,184,880.64 -26.17% 14,603,200.00 13.94% (RMB) Net profit after deducting of non-recurring gain/loss attributable to 2,624,001.74 -49.19% 13,765,931.45 1.77% the shareholders of listed company (RMB) Cash flow generated by business -- -- 82,969,825.20 -14.04% operation, net(RMB) Basic earning per share(RMB/Share) 0.0267 -26.04% 0.1223 13.87% Diluted gains per 0.0267 -26.04% 0.1223 13.87% share(RMB/Share)(RMB/Share) Weighted average income/asset ratio 1.16% -0.49% 5.30% 0.41% (%) Items and amount of non-current gains and losses √ Applicable □ Not applicable In RMB Amount (Year-beginning to Items Notes the end of the report period.) 3 Chongqing Jianshe Motorcycle Co., Ltd. The Third Quarterly Report 2017 Non-current asset disposal gain/loss(including the write-off part for which assets 58,191.62 impairment provision is made) Govemment subsidy recognized in current gain and loss(excluding those closely 346,000.00 related to the Company’s business and granted under the state’s policies) Other non-business income and expenditures other than the above 433,076.93 Total 837,268.55 -- Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item. □ Applicable √Not applicable None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares Total preference shareholders Total number of common with the voting power 8,321 0 shareholders at the period-end recovered at the end of the reporting period(if any) Shares held by the top 10 shareholders Amount of Pledging or freezing tradable shares Properties of Share Shareholder name Quantity with Status of the shareholder proportion % Quantity Conditional shares held Chongqing Jianshe Mechanical and State-owned legal 71.13% 84,906,250 84,906,250 Freeze 6,100,000 Electric Co., Ltd person Domestic natural Gu Zuocheng 1.86% 2,218,750 2,218,750 person Domestic Anhui Hengsheng Economic non-state-owned 1.47% 1,750,000 1,750,000 Development Group Co., Ltd. legal person Domestic natural Liu Dan 0.86% 1,032,201 0 person Domestic natural Yu Lingfeng 0.52% 623,621 0 person Chen Xinqiang Domestic natural 0.51% 612,400 0 4 Chongqing Jianshe Motorcycle Co., Ltd. The Third Quarterly Report 2017 person Domestic natural Xu Yuanhui 0.51% 610,789 0 person Domestic natural Zhang Meilan 0.43% 513,560 0 person GUOTAI JUNAN Overseas legal SECURITIES(HONGKONG) 0.43% 511,525 0 person LIMITED Domestic natural Feng Yonghui 0.42% 500,000 500,000 person Shares held by the Top 10 Shareholders of Non-restricted shares Number of the non-restricted Share type Shareholders’ Names shares held Share type Quantity Foreign shares placed Liu Dan 1,032,201 1,032,201 in domestic exchange Foreign shares placed Yu Lingfeng 623,621 623,621 in domestic exchange Foreign shares placed Chen Xinqiang 612,400 612,400 in domestic exchange Foreign shares placed Xu Yuanhui 610,789 610,789 in domestic exchange Foreign shares placed Zhang Meilan 513,560 513,560 in domestic exchange GUOTAI JUNAN SECURITIES(HONGKONG) Foreign shares placed 511,525 511,525 LIMITED in domestic exchange Foreign shares placed Chen Houping 422,961 422,961 in domestic exchange CORE PACIFIC-YAMAICHI INTERNATIONAL Foreign shares placed 373,299 373,299 (H.K.) LIMITED in domestic exchange Foreign shares placed Liu Guosheng 313,000 313,000 in domestic exchange Foreign shares placed Lin Fan 254,000 254,000 in domestic exchange There isn’t any associated relationship between the sponsoring shareholder and the other shareholders among the top-10 list. None of them are regarded Explanation on associated relationship among the as ‘Acting in concert’ in accordance with ‘The rules of information aforesaid shareholders disclosure on change of shareholding.’ Foreign shareholders are unknown for their condition of ‘Associated relationship’ and ‘Acting in concert’. Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a 5 Chongqing Jianshe Motorcycle Co., Ltd. The Third Quarterly Report 2017 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 number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable 6 Chongqing Jianshe Motorcycle Co., Ltd. The Third Quarterly Report 2017 III. Significant Issues I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes √ Applicable □ Not applicable During the reporting period, the net profit excluding non-recurring gains and losses attributable to shareholders of the listed company decreased by -49.19% over the same period last year, which is mainly due to the sales volume of the same period last year is greater than the sales volume of the current period. II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. √ Applicable □ Not applicable For details, please see the following guide of the temporary announcements Description of the website for disclosing provisional Overview of material matters Date of disclosing announcements The 6.1 million shares of the company held by the company's controlling shareholder- For details, please see Announcement about the Construction Electromechanical was judicially September 15,2017 Shareholder's Shares being Frozen,Announcement froze by Chongqing Ba'nan District People's No.2017-055 , http://www.cninfo.com.cn. Court. For details, please refer to the Announcement on the Pre-disclosure of the Equity Transfer of Shanghai The company planned to transfer its 51% stake December 6,2016 Construction Motorcycle Co., Ltd on the Shanghai of Shanghai Construction. Union Property Exchange, Announcement No.2016-080 , http://www.cninfo.com.cn. III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period □ Applicable √Not applicable There are no commitments that the company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period. IV.Prediction of Business performance for 2017 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 7 Chongqing Jianshe Motorcycle Co., Ltd. The Third Quarterly Report 2017 V. Investment in securities □ Applicable √Not applicable No Securities investment in period VI. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference √Applicable □Not applicable Way of Reception time Types of visitors Basic index reception Q: What is the company's industry or product planning for the next 3-5 years? A: The company will continue to promote the leading Telephone development of automotive air conditioning industry, introduce the new July 18,2017 communicatio Individual technologies, establish the automobile heat management system industry n chain, optimize and enhance the rotary vane compressor and snatch the market share of new energy automotive air conditioning. For details, please refer to the relevant contents of the Company's annual report. Q: When will the transfer of equity of Shanghai Construction be September 11,2017 Other Individual completed? A: It's carried out according to the plan, please pay attention to the company's related information disclosure. VIII. Outward Guarantee against the Regulations □ Applicable √ Not applicable The Company had no guarantee outside against the regulation in the reporting period. IX. Controlling shareholder and its related parties occupying non-business capital of the listed company □ Applicable √Not applicable There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period X.Implementation of the social Responsibility of taking targeted measures to alleviate poverty in light of local Conditions. In The report third quarter, the company neither carried out the work of taking targeted measures to alleviate poverty in light of local conditions nor has such a plan. 8