Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Nanjing Putian Telecommunications Co., Ltd.
SEMI-ANNUAL REPORT 2015
August 2015
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Nanjing Putian Telecommunications 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.
Other directors attending the Meeting for semi-annual report deliberation except for
the followed:
Name of director absent Title for absent director Reasons for absent Attorney
Li Tong Director Work causes Huang Haodong
Li Ying Director Work causes Han Shu
Ding Haiyan Independent Director Work causes Zhang Shunyi
The Company has no plans of cash dividend distributed, no bonus shares and has no
share converted from capital reserve either.
Li Linzhen, principal of the Company, Shi Lian, person in charger of accounting
works and Qiu Huizhen, person in charge of accounting organ (accounting principal)
hereby confirm that the Financial Report of Semi-Annual Report 2015 is authentic,
accurate and complete.
Concerning the forward-looking statements with future planning involved in the
Semi-Annual Report, they do not constitute a substantial commitment for investors.
Investors are advised to exercise caution of investment risks.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Content
SEMI-ANNUAL REPORT 2015 .............................................................................................................................................................1
Section I. Important Notice, Contents and Paraphrase ............................................................................................................................2
Section II Company profile .....................................................................................................................................................................5
Section III. Accounting data and summary of financial indexes ..............................................................................................................7
Section IV. Report of the Board of Directors ...........................................................................................................................................9
Section V. Important Events ..................................................................................................................................................................21
Section VI. Changes in Shares and Particulars about Shareholders .......................................................................................................33
Section VII. Preferred Stock ..................................................................................................................................................................37
Section VIII. Directors, Supervisors and Senior Executives ..................................................................................................................38
Section IX. Financial Report .................................................................................................................................................................39
Section X. Documents available for reference .......................................................................................................................................39
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Paraphrases
Items Refers to Definition
CSRC Refers to China Securities Regulatory Commission
SZ Stock Exchange Refers to Shenzhen Stock Exchange
The Company, Company, Nanjing Putian Refers to Nanjing Putian Telecommunications Co., Ltd.
China Potevio Company Limited (controlling shareholder of the
China Potevio Refers to
Company)
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Section II Company profile
I. Company Profile
Short form for share NJ TEL B Code for share 200468
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the Company 南京普天通信股份有限公司
English name of the
Nanjing Putian Telecommunications Co., Ltd.
Company(if applicable)
Legal Representative Wang Hong
II. Contact person and ways
Secretary of the Board Rep. of securities affairs
Name Zhang Shenwei Xiao Hong
Contact adds. No. 1 Putian Road, Qinhuai District Nanjing No. 1 Putian Road, Qinhuai District Nanjing
Tel. 86-25-58962010 86-25-58962072
Fax. 86-25-52409954 86-25-52409954
E-mail zsw@postel.com.cn xiaohong@postel.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2014.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2014.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
organization code have no change in reporting period, found more details in Annual Report 2014.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y
Operating revenue (RMB) 920,291,331.61 1,173,023,650.25 -21.55%
Net profit attributable to shareholders of
-16,613,763.93 -9,418,674.05 -76.39%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting -18,587,900.12 -13,163,451.04 -41.21%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-135,877,454.58 -56,514,782.79 -140.43%
activities(RMB)
Basic earnings per share (RMB/Share) -0.08 -0.04 -100.00%
Diluted earnings per share (RMB/Share) -0.08 -0.04 -100.00%
Weighted average ROE -4.67% -2.49% -2.18%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 2,227,454,042.84 2,082,860,208.23 6.94%
Net assets attributable to shareholder of
347,571,687.28 364,179,913.14 -4.56%
listed company(RMB)
II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
There is no difference of the net profit and net assets disclosed in financial report, under both IAS and Chinese GAAP
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
There is no difference of the net profit and net assts disclosed in financial report, under both foreign accounting rules and Chinese
GAAP
III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
-43,797.53
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
2,862,726.34
national standards, which are closely relevant to enterprise’s
business)
Gain/loss from debt restructure 173.00
Other non-operating income and expenditure except for the
171,226.31
aforementioned items
Less: impact on income tax 292,246.28
Impact on minority shareholders’ equity (post-tax) 723,945.65
Total 1,974,136.19 --
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.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Section IV. Report of the Board of Directors
I. Introduction
During the first half year 2015, facing the complicated economic situation and uncertainties, the Company
adhered to innovation and assets-oriented policies, focused on quality and efficiency improvement as well as
assets structure optimization, promoted industrial development, enhanced basic management and carried out the
budget tasks. By means of these hard working, the Company was enabled to keep stable and orderly development
in production and operation in general. Affected by continuously decreasing price of collective procurement from
operators and furious market competition, the Company recorded operating income of RMB920 million during
the reporting period, representing a completion rate of 51.13% to the annual plan and a year-on-year decrease of
21.55%. Three expenses increased as compared to that of last year. The operating profit was RMB (8.2328)
million, representing a decrease of 98.37%. The net profit attributable to parent company was RMB (16.6138)
million.
In order to accomplish its annual operation plan, the Company adopted the following measures and actions:
In terms of industrial development: during the first half year, our business segments seized market opportunities
based on their own features and operation bases, insisted on resources sharing and innovative solutions, fully
capitalized on the core driving force arising from headquarters’ cooperation with operating entities, emphasized
major project management and obtained new progress in industrial development.
As for wiring segment: the Company took advantages in market accumulation as a traditional operators, with
additional resource allocation into radio and television, power and railway markets when consolidating network
construction requirements for operators, which presented new development opportunity accordingly. The
Company also made active cooperation with operators to establish centralized standards, and participated in
pre-qualification review on products of Telecom Group including network cabinet, power supply cabinet, cabling
rack and conduits. Its comprehensive cabinet product was also selected by China Tower Company as one of those
product types to be likely to be used for the group base station of China Tower Company. Meanwhile, the
Company also actively explored overseas market, with its heat-melting fast-connecting products sold to overseas
market through SUMITOMO ELECTRIC, remarking new progress.
As for multimedia segment: major customer resources were explored through multiple channels. Provision of
integrated solution service enabled the segment to gradually expand into customers’ business fields, realizing
market penetration and new industrial development. In addition, the segment also recorded progress in finance,
education and medical service industries through providing innovative industry solutions when consolidating its
traditional markets.
As for access and application industry: the segment actively participated in construction of major network projects
including government, subway, real estate and campus related projects; developed professional cooperation
partners for products like closed circuit TV and commercial displayers; focused on development of new market,
particularly following up the dynamic monitor construction project of China Tower Company.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
As for intelligent electricity segment: the Company closely followed up its major products and especially
achieved good performance in railway transportation industry, realizing general coverage in 24 cities and 84
subway lines across the nation. Market development was strengthened for social customers from airport, power,
port and wharf. Maintenance and development in respect of distributors were also increased.
As for system integration segment: progress and breakthrough was made in fields of funeral, aging care, landscape
and cloud computation, targeting to expand operation lines from time to time.
As for wireless industry: the established high-speed rail project was consolidated when dramatically developing
new operator market. The Company actively took part in centralized procurement of operators for passive devices,
and accordingly recorded new progress in market expansion.
As for basic processing segment: in addition to strengthening its traditional processing business, the Company
also explored in development of new products and businesses. It strengthened management, optimized assets
quality, increased communication with customers and improved product quality.
As for operation management: for the first half year, the Company carried out operation management based on
operating budget and industry transformation. Under simplified, high efficient and professional principles, it
further increased management innovation and function improvement and further intensified its supportive
guarantee for industrial development.
I. to enhance strategic plan and promote intensive development. Resources were collected to develop its major
business so as to increase management support for its operation development. Structure adjustment was further
made to improve asset operation efficiency. Measures were planned to adapt to the new situations, basic
management over our development plan was improved and strategic guiding function shall be enhanced
continuously.
II. to increase cooperation with major customers and promote industrial development. Major customers were
greatly explored to carry out the cooperation projects. New strategic cooperation partners were actively developed.
Besides, it established internal platform where market and technical resources can be shared. It held salon
activities to strengthen integration between internal resources and industry chain, thus to strengthen
communication among various entities personnel.
III. to optimize investment structure and enhance asset utilization efficiency. It further increased internal control
in respect of investment management, preliminary due diligence was further carried out and equity investment
management policy was improved. Through standardization of management over three committees, the
headquarter platform function of the Company was further capitalized to provide beneficial resources for second
level entities.
IV. to strengthen standardized management and endogeny force. Through increasing budget supervision and
enhancing budget implementation efficiency, the Company was enabled to successfully complete operating
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
targets. Three expenses were in strict control through intensified cost expenses management and standardized cost
expenses budget. Commercial, legal and financial works were coordinated dramatically to clear overdue trade
receivables and overdue delivery of commodities. In order to improve asset quality, effective assets were fully
utilized by intensified recovery of capitals. The Company insisted on making innovation on its own and
performed well in making scientific innovation. In particular, 33 products passed review by city experts and were
authorized to establish special projects, and four patent applications obtained authorization from the National
Intellectual Property Bureau. Construction of quality system, environment management system and occupation
health and safety management system was carrying out in an orderly manner, among which, quality management
system successfully passed re-review. The Company experienced less operating cost pressure through
standardized procurement procedure and new procurement methods.
V. to increase risk management and further improve internal control system construction. The Company promoted
financial review on contracts, conducted legal review in procedures, increased risk management on bulk
commodity operation risks, improved contract review information system and intensified dynamic management
on contract execution and implementation. In terms of research and development management, the Company
started audit investigation on research and development management, and paid attention to research and
development effects, and prevented technical research risks.
VI. to drive forward construction of human resource system. The Company intensified management and
construction of leader team, analysis on human structure and organization development of certain major
businesses, average economic benefit per capita and labor costs. The Company continued to promote the
remuneration system based on performance, strengthened mechanism reform of business integration and perfected
the appraisal plan of various operating entities based on general appraisal system. Young talents were trained
continuously to establish new training propaganda model in general.
VII. to capitalize on our propaganda platform service business. The Company increased enterprise culture
propaganda, built positive corporate image, inspired working enthusiasm of staff and created an atmosphere of
harmony and stability.
The situation which the Company is going to face in the later half year remains extremely severe. The Company
will continue to implement the working plan as established at the beginning of the year, aiming to accomplish its
annual operation target. Market was further explored to increase sources and save expenditures. Through
enhancement in basic management, the Company worked greatly to increase income and reduce costs,
strengthened research and development of new products, so as to ensure the Company can achieve its annual
operating budget and working targets.
II. Main business analysis
Year-on-year changes of main financial data
In RMB
Current period Same period of last year Y-o-y increase/decrease Reasons for changes
Firstly, the sharp
Operation revenue 920,291,331.61 1,173,023,650.25 -21.55%
competition of market,
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
sales size and price of
wiring products are
declined; secondly,
income from the
integration trading
products (who has a low
gross margin) decreased,
Sales declined on a y-o-y
Operation cost 759,205,839.90 1,008,242,535.79 -24.70%
basis in the Period
Sales expenses 85,374,312.00 84,634,467.99 0.87% -
Administrative expenses 68,807,167.70 64,294,527.99 7.02% -
Affected by interest rate
adjustment, net
expenditure of the
interest and note discount
Financial cost 11,250,520.74 15,922,237.55 -29.34% decreased RMB 3.8725
million y-o-y, interest
income increased RMB
806,300 over same
period of last year
Profit from subsidiary
Income tax expense 8,415,501.07 5,248,812.79 60.33% goes up, than income tax
expenses increased
R&D investment 36,886,662.06 44,163,487.38 -16.48% -
1. More account payable
are paid at year-begin,
the cash out-flows
increased; 2. Account
receivables increased,
than the cash out-flows
Net cash flow arising
-135,877,454.58 -56,514,782.79 -140.43% decreased
from operation activities
correspondingly; 3. the
H&R cost paid increased
by the Company and the
out-of-pocket cost
increased over that of
period years
At same period of last
Net cash flow arising year, the Company
from investment -2,647,780.06 7,108,233.21 -137.25% received a residual
activities payment RMB 10.66
million from equity of
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
stock-jointly transferred,
the cash in-flow from
investment activities are
increased over the Period
The new bank loans
Net cash flow arising
54,725,674.00 5,420,723.59 909.56% higher than the bank
from financing activities
loans expired
The cash flow arising
from operation activity
Net increase of cash and and investment activity
-83,789,559.09 -43,926,675.63 -90.75%
cash equivalent in the Period decreased
over same period of last
year
Profit from the
shares-holding
Investment income 1,648,163.04 227,042.96 625.93%
corporation increased in
the Period
Operation income
declined in the Period,
Operation profit -8,232,830.34 -4,150,260.40 -98.37% and resulted a loss under
the expenses are stay
stable
Operation income
Net profit attributable to declined in the Period,
owners’ of parent -16,613,763.93 -9,418,674.05 -76.39% and resulted a loss under
company the expenses are stay
stable
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
Review on the previous business plan and its progress during reporting period
The Company has disclosed its main business targets of 2015 in “2014 Annual Report”: to achieve the operating
income of 1.8 billion Yuan, and to make progress in management quality. (Note: the above operation target is not the
profit prediction, inevstors are advise to pay attention)
During the Period, around by the opeartion plan formualted at beginning of the Year, the Company actively promote every works,
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
and achieved a progress, till end of June 2015, the Company realized operation revenue of RMB 920 million, completed 51.13% of
the plan for the year, progress of the works found more in “I. Introduction” of the Section
III. Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Operating
Operating cost Gross profit ratio operating revenue operating cost profit ratio over
revenue
over same period over same period same period of
of last year of last year last year
According to industries
Communication
824,404,843.17 687,220,310.70 16.64% -24.96% -27.23% 2.60%
industry
Electric apparatus
54,185,202.22 37,981,402.17 29.90% -3.94% -11.16% 5.69%
industry
According to products
Video conference
299,357,116.68 244,475,588.18 18.33% -4.62% -9.04% 3.97%
products
Integrated wiring
141,976,514.49 112,472,131.59 20.78% 16.77% 17.61% -0.57%
products
Electrical
54,185,202.22 37,981,402.17 29.90% -3.94% -11.16% 5.69%
products
Wiring products
454,918,063.48 402,119,442.41 11.61% -40.44% -41.66% 1.85%
and other
Interior offset -71,846,851.48 -71,846,851.48
According to region
Domestic 877,872,965.80 724,607,372.53 17.46% -22.57% -25.03% 2.71%
Overseas 717,079.59 594,340.34 17.12% -96.64% -97.12% 13.77%
Explanation: due to the increasingly furious competition, selling price and sales volume of certain wiring products
of the Company declined accordingly, resulting in decrease of operating income as compared to that of last year.
Meanwhile, the Company made more adjustment to industrial structure, and recorded less trading income from
centralized procurement for which gross profit margin was extremely low. Therefore, the overall gross profit
margin was higher than that of last year.
IV. Core competitive-ness analysis
The Company is a state-owned holding telecommunication equipment manufacturer. With multiple years of
development, the Company now has formed operating landscape integrating with wiring segment, multimedia
application segment, access and application segment, intelligent electricity segment, wireless segment, system
integration segment as well as basic processing segment, offering a variety of products. It is well established in
research and development capability, production capability, marketing capability, brand recognition and market
influences. During the reporting period, the Company adhered to market orientation, independent innovation,
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
optimization of product structure and transformation, to further ensure competitiveness.
V. Investment analysis
1. Equity investment
(1) Investment outside
□ Applicable √ Not applicable
The Company has no investment outside in the Period
(2) Holding the equity of financial enterprise
□ Applicable √ Not applicable
No equity of financial enterprise held by the Company in Period
(3) Securities investment
□ Applicable √ Not applicable
The Company has no securities investment in the Period
(4) Explanation on equity of other listed company held
□ Applicable √ Not applicable
The Company had no equity of other listed company held in Period.
2. Trust financing, investment of derivatives and entrustment loan
(1) Trust financing
□ Applicable √ Not applicable
The Company has no trust financing in Period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivative investment in Period.
(3) Trust loans
□ Applicable √ Not applicable
The Company has no trust loans in the Period
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
3. Application of raised proceeds
□ Applicable √ Not applicable
The Company had no application of raised proceed in Period.
4. Main subsidiaries and joint-stock companies analysis
√Applicable □Not applicable
Main subsidiaries and joint-stock companies
In RMB
Main
Industry Registered Operation Operation
Name Type products or Total assets Net assets Net profit
involved capital revenue profit
service
Nanjing Manufactur
South e and sales
Communica
Telecommu of data 34,205,147. 427,679,32 140,329,06 299,532,11 14,108,78
Subsidiary tion 8,443,845.54
nications communica 83 3.21 4.10 6.68 8.67
industry
Company tion
Limited equipment
Nanjing Manufactur
Putian e and sales
Communica
Tianji of 12,000,000. 256,707,24 92,125,399. 143,733,66 6,551,160
Subsidiary tion 5,672,293.79
Building intelligent 00 6.31 36 2.79 .02
industry
Intelligent building
Ltd. system
Manufactur
e and sales
Nanjing of software
Putian Communica of
10,000,000. 43,586,409. 23,238,070. 13,883,064. -2,639,20
Network Subsidiary tion telecommu -2,268,616.67
00 52 82 72 7.86
Company industry nications,
Ltd. network and
electronic
equipment
Out-door
Nanjing patch,
Putian sub-line
Changle Communica equipment,
10,000,000. 115,999,98 31,660,140. 45,967,575.
Telecommu Subsidiary tion network 82,418.70 423,195.56
00 7.59 82 10
nications industry box(cube)of
Equipment out-door
Co., Ltd. and
machinery
16
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
office,
manufactur
e and sales
of
communica
tion
electrical
products
Manufactur
Nanjing
e of
Bada
Communica card-termin
Telecommu 11,301,400. 7,681,055.7 -8,888,426. 7,787,395.0 -2,945,67
Subsidiary tion al -2,933,894.53
nications 00 6 74 6 2.26
industry communica
Equipment
tion
Co., Ltd.
equipment
Export and
import of
telecommu
Putian
nication
Telecommu Communica
equipment, HK$ 2 7,438,713.0 -16,180,120
nications Subsidiary tion -4,865.21 -4,865.21
Hi-tech R & million 6 .76
(H.K.) Co., industry
D and
Ltd.
transfer,
technology
trade
Nanjing
Production,
Postel
Communica sales and
Wongzhi 90,190,000. 40,861,031. 39,556,243. 6,556,716.1 -301,739.
Subsidiary tion processing -303,739.59
Telecommu 00 43 26 2 59
industry of electrical
nications
products
Co., Ltd.
Manufactur
Nanjing
e and sales
Putian
Communica of electrical
Information 14,000,000. 12,169,583. 5,445,183.5 9,473,822.6 214,229.8
Subsidiary tion and 102,214.74
Technology 00 37 7 9 3
industry telecommu
Company
nication
Ltd.
products
Nanjing Electronic
Putian components
Communica
Telecommu assembly, 5,000,000.0 40,251,932. 8,869,167.2 -716,761.
Subsidiary tion 944,728.58 -623,661.75
nication electronic 0 56 7 07
industry
Technology products,
Company telecommu
17
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Ltd. nication
equipment,
Hi-tech R &
D and sales
Manufactur
Nanjing e and sales
Electrical
Mennekes of plug & USD 5.2 139,504,01 87,950,318. 54,737,783. 2,731,296
Subsidiary apparatus 1,730,869.91
Electrics socket of million 5.94 06 42 .03
industry
Co., Ltd. industrial-u
sed
Developme
nt,
production,
sale,
Nanjing engineering
Putian technical
Communica
Datang service of 10,000,000. 36,182,167. 26,083,475. 14,668,147. 598,302.2
Subsidiary tion 1,085,867.91
Information electronic 00 92 76 00 4
industry
Electronic product;
Co., Ltd. processing
service of
surface
mounting
and welding
Developme
nt and
manufactur
SEI-Nanjin
e of ODN
g Putian Communica
Joint-stock products, 37,088,800. 59,521,931. 28,033,636. 23,632,373. 2,478,746
Optical tion 2,480,387.83
company optical 00 20 77 32 .14
Network industry
communica
Co., Ltd.
tion
components
and RFTS
R&D of
communica
tion
Potevio
Communica technology
Hi-tech Joint-stock 337,548,14 347,533,51 341,144,98 7,652,485.4 854,306.5
tion products, 816,397.08
Industry company 1.29 6.05 0.05 3 9
industry sales,
Co., Ltd.
network
system
integration,
18
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
rental of
industrial
park venue
and
property
managemen
t etc.
5. Major project invested by non-raised funds
√ Applicable □ Not applicable
In ten thousand Yuan
Amount
invested
Total Amount Date for Index for
accumulative
Project investment invested in this Progress Earnings disclosed (if disclosed (if
till end of
planned period applicable) applicable)
reporting
period
Notice: “Notice
of Investment
for the Phase I
of Putian
Phase I of
Technology
Putian
Innovation
Technology 5,683.5 217.02 2,138.09 37.62% Unfinished 2013-10-18
Park”; Notice
Innovation
No.: 2013-025;
Park
Website:
Juchao website
(www.cninfo.c
om.cn)
Total 5,683.5 217.02 2,138.09 -- -- -- --
VI. Prediction of business performance from January – September 2015
Estimation on 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 on reason
□ Applicable √ Not applicable
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from
the CPA of this year’s
□ Applicable √ Not applicable
19
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
VIII. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital
reserve in particular
□ Applicable √ Not applicable
Profit distribution plan for first half year was: no plans of cash dividend distributed, no bonus shares and has no share converted from
capital reserve either
X. Profit distribution plan and transfer of public reserve to common shares in the period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual of the year.
XI. In the report period, reception of research, communication and interview
□ Applicable √ Not applicable
The Company has no reception of research, communication and interview activity occurred in the Period
20
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Section V. Important Events
I. Corporate governance
By strictly followed requirement of relevant laws and regulations as well as relevant normative documents of “Company Law”,
“Securities Laws” etc. and China Securities Regulatory Commission on corporate governance requirements, the Company constantly
perfected its corporate governance. Actual corporate governance of the Company shows no difference with the Company Law and
relevant regulations of CSRC until the period-end.
II. Lawsuits
Significant lawsuits and arbitrations
□Applicable √Not applicable
The Company has no significant lawsuits and arbitrations in reporting period.
Other lawsuits
□Applicable √Not applicable
III. Question from media
□ Applicable √ Not applicable
No universal questioned by media in reporting period
IV. Bankruptcy reorganization
□ Applicable √ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.
V. Transaction in assets
1. Acquisition of assets
□ Applicable √ Not applicable
The Company has no assets purchased in the Period
2. Assets sold
□ Applicable √ Not applicable
The Company has no assets for sale in the Period
21
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
3. Enterprise mergers
□ Applicable √ Not applicable
In the reporting period, the Company has no enterprise merger.
VI. Implementation of the Company’s equity incentive and its influence
□ Applicable √ Not applicable
The Company has no equity incentive plan and its implementation either in the Period
VII. Significant related transaction
1. Related transaction connected to routine operations
√ Applicable □ Not applicable
Related
Related Proporti Whether
transacti Trading Availabl
transacti on in the over the Related
Related Related Related on limit e market Index
Related on Related amount approve transacti Date of
transacti transacti transacti amount approve prices of of
relations explanat transacti of the d on disclosu
on on on (in 10 d (in 10 similar disclos
hip ion on on price same limited settleme re
parties type content thousan thousan transacti ure
price transacti or not nt mode
d d Yuan) ons
setting on (Y/N)
Yuan))
“Expe
cted
Stock-jo
Relate
intly
d
enterpris
Transa
e of the
ction
Compan
with
y ,Direct
SEI-Nan Procure Telecom Market Routin
ors and
jing ment of product price e
Senior
Putian goods Operat
executiv Bank 2015-03
Optical and 1,692.27 1.84% 5,100 No ion
e of the transfer -31
Network provide Conce
Compan
Co., labor rned
y
Ltd. services for
serves
year of
as
2015”
Director
publis
of the
hed on
compan
Juchao
y
Websit
e
Chengd Controll Procure Telecom Market 1,270.36 1.38% 2,000 No Bank 2015-03 “Expe
22
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
uPutian ing ment of product price transfer -31 cted
Telecom sharehol goods Relate
municati der’s and d
ons subsidia provide Transa
Cable ry labor ction
Co., services with
Ltd. Routin
e
Operat
ion
Conce
rned
for
year of
2015”
publis
hed on
Juchao
Websit
e
“Expe
cted
Relate
d
Transa
ction
with
Nanjing
Procure Routin
Putian Controll
ment of e
Honyar ing
goods Operat
Electric sharehol Telecom Market Bank 2015-03
and 10.06 0.01% 400 No ion
al der’s product price transfer -31
provide Conce
Technol subsidia
labor rned
ogy Co., ry
services for
Ltd.
year of
2015”
publis
hed on
Juchao
Websit
e
China Controll Sales of “Expe
Telecom Market Bank 2015-03
Potevio ing goods 2,448.47 3.55% 16,360 No cted
product price transfer -31
Compan Shareho and Relate
23
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
y lders provide d
Limited labor Transa
services ction
with
Routin
e
Operat
ion
Conce
rned
for
year of
2015”
publis
hed on
Juchao
Websit
e
Shangha Controll Sales of
i Putian ing goods
Youtong sharehol and Telecom Market Bank 2015-03
10.66 0.02% 10.66 No
Technol der’s provide product price transfer -31
ogy Co., subsidia labor
Ltd. ry services
“Expe
cted
Relate
d
Transa
ction
with
Shangha Controll Sales of Routin
is Putian ing goods e
Network sharehol and Telecom Market Bank 2015-03 Operat
2.15 0.00% 100 No
Technol der’s provide product price transfer -31 ion
ogy subsidia labor Conce
Co.,Ltd. ry services rned
for
year of
2015”
publis
hed on
Juchao
Websit
24
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
e
Beijing
PuTian
Controll Sales of
TaiLi
ing goods
Telecom
sharehol and Telecom Market Bank 2015-03
municati 105.25 0.15% 105.25 No
der’s provide product price transfer -31
ons
subsidia labor
Technol
ry services
ogy Co.,
Ltd.
“Expe
cted
Relate
d
Subsidia Transa
ry of ction
controlli with
ng Routin
sharehol e
Potevio
der(an Housing Operat
Hi-tech Market 100.00 Bank 2015-03
enterpris Lessee construc 364.4 1,400 No ion
Industry price % transfer -31
e with tion Conce
Co.,Ltd.
shares rned
held by for
the year of
Compan 2015”
y) publis
hed on
Juchao
Websit
e
Stock-jo “Expe
intly cted
enterpris Relate
SEI-Nan
e of the d
jing
Compan Transa
Putian Housing
y ,Direct Market 100.00 Bank 2015-03 ction
Optical Rental construc 30 100 No
ors and price % transfer -31 with
Network tion
Senior Routin
Co.,
executiv e
Ltd.
e of the Operat
Compan ion
y Conce
25
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
serves rned
as for
Director year of
of the 2015”
compan publis
y hed on
Juchao
Websit
e
25,575.9
Total -- -- 5,933.62 -- -- -- -- -- --
1
Return of major sales N/A
At the beginning of the year, the Company made prediction on normal related transactions
throughout 2015 with a total amount not exceeding RMB265.6 million, among which, the
total purchase amount from related parties would not exceed RMB80 million, the total sales
Report the actual implementation of amount to related parties would not exceed RMB170.6 million, the rental and property
the normal related transactions which management fees paid to related parties would not exceed RMB14 million, and the rental
were projected about their total received from leasing properties to related parties would not exceed RMB1 million. By June
amount by types during the reporting 2015, the total amount of actual normal related transaction of the Company was
period(if applicable) RMB59.3362 million, among which, RMB29.7269 million went to purchase of products
from related parties, RMB25.6653 million went to sales of products, RMB3.644 million went
to payment of rental and RMB0.3 million went to receipt of rental, all of which did not
outrun of the prediction.
Reason for the great difference
between trade price and market Not applicable
reference price (if applicable)
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
The Company has no related transactions occurred by assets acquisition and sold in the Period
3. Major related transactions of mutual outward investment
□ Applicable √ Not applicable
The Company has no related transaction of mutual outward investment occurred in the Period
4. Contact of related credit and debt
√ Applicable □ Not applicable
Whether exist non-operating contact of related credit and debt or not
□Yes √No
The Company has no non-operating contact of related credit and debt occurred in Period
26
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
5. Other significant related transactions
√ Applicable □ Not applicable
As of reporting period, 49.64 percent equity of Ptevio Hi-Tech Industry Co., Ltd. held by the Company was pledged to China Potevio
Company Limited, controlling shareholder of the Company, as a counter-guarantee for RMB 84 million loans for the Company.
Website for temporary disclosure of the related transaction
Announcement Date of disclosure Website for disclosure
”Notice of Counter-guarantee Offer to
2010-08-25 Juchao Website
Controlling Shareholder of the Company”
VIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.
IX. Significant Contracts and its performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable √ Not applicable
The Company has no trusteeship in the Period
(2) Contract
□ Applicable √ Not applicable
The Company has no contracting in the Period
(3) Leasing
√ Applicable □ Not applicable
Explanation on leasing
In reporting period, the Company rented lands and property from Potevio Hi-tech Industry Co., Ltd for purpose of production and
office, rental for first half of 2014 amounting to 3,644,000 Yuan. Subsidiary Nanjing Putian Datang Information Electronics Co., Ltd.
lease the property to share-holding corporation of the Company SEI-Nanjing Putian Optical Network Co., Ltd., rent for first half year
amounting to RMB 300,000.
Items generated over 10% gains/losses in total profit in reporting period for the Company
√ Applicable □ Not applicable
Contract-o Condition Amount Leasing Leasing Leasing Determine Influence Consist of Related
Lessee
ut party of assets involved date from end at profit (10 basis for on the related relationshi
27
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
leasing in thousand leasing company transaction p
leasing(10 Yuan) profit or not
thousand
Yuan)
The land
under the
related
transaction
s
agreement
was the
office and
production
Subsidiary
location of
of
the
Nanjing controlling
Potevio Company,
Putian shareholde
Hi-tech Land 2015-01-0 2015-12-3 Market the related
Telecomm 3,667.14 -364.4 Yes r(shares of
Industry property 1 1 price transaction
unications the
Co.,Ltd. benefit to
Co., ltd. enterprise
guarantee
held by
the normal
Company)
operation
developme
nt of the
Company.
Rent in
reporting
period was
RMB
3,644,000.
2. Guarantee Providing
√ Applicable □ Not applicable
In ten thousand Yuan
Guarantee offered by the Company(excluding the guarantee offered to the subsidiaries)
Happening Date Guaranty
Relevant
(the date when Actual offered to
notice Guaranty Type of Term of Complete
Name of the debtor the guaranty guarantee a related
disclosure limit guaranty guaranty d or not
agreement was amount party
date
signed) (Y/N)
China Potevio Ended as
2010-08-25 8,400 2010-09-19 8,400 Pledge N Y
Company Limited correspondin
28
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
g loans paid
which was
secured by
China
Potevio since
September
2012 (note:
this guarantee
is a counter
guarantee
that the
Company
offers to
China
Potevio)
Total amount of external Total actual amount of
guarantee limit approved during 0 external guarantee during the 0
the report period(A1) report period(A2)
Total amount of external Total actual amount of
guarantee limit approved at 8,400 external guarantee at 8,400
period-end(A3) period-end(A4)
Guaranty offered with the subsidiaries
Happening Date Guaranty
Relevant
(the date when Actual offered to
notice Guaranty Type of Term of Complete
Name of the debtor the guaranty guarantee a related
disclosure limit guaranty guaranty d or not
agreement was amount party
date
signed) (Y/N)
Nanjing South
Telecommunicatio Joint liability 2014.11.27-2
2014-03-11 6,000 2014-11-26 2,000 N N
ns Company assurance 015.11.24
Limited
Nanjing South
Telecommunicatio Joint liability 2015.1.20-20
2014-03-11 6,000 2015-01-20 1,000 N N
ns Company assurance 15.12.28
Limited
Nanjing South
Telecommunicatio Joint liability 2015.4.1-201
2014-03-11 6,000 2015-04-01 2,000 N N
ns Company assurance 6.4.1
Limited
Nanjing Putian
Joint liability 2014.9.23-20
Tianji Building 2014-03-11 2,000 2014-09-23 1,000 N N
assurance 15.9.23
Intelligent Ltd.
29
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Nanjing Putian
Joint liability 2015.3.25-20
Tianji Building 2014-03-11 2,000 2015-03-25 1,000 N N
assurance 15.11.25
Intelligent Ltd.
Total amount of guarantee limit Total actual amount of
approved for subsidiaries in the 8,000 guarantee limit for subsidiaries 4,000
report period(B1) in the report period(B2)
Total amount of guarantee limit Total actual amount of
approved for subsidiaries at 8,000 guarantee limit for subsidiaries 7,000
period-end(B3) at period-end(B4)
Guaranty offered by subsidiaries to subsidiaries
Happening Date Guaranty
Relevant
(the date when Actual offered to
notice Guaranty Type of Term of Complete
Name of the debtor the guaranty guarantee a related
disclosure limit guaranty guaranty d or not
agreement was amount party
date
signed) (Y/N)
Total guarantee of the Company (Including the above three mentioned guarantees)
Total amount of guarantee limit
Total amount of guarantee in
approved in the report 8,000 4,000
the report period(A2+B2+B2)
period(A1+B1+C1)
Total amount of guarantee limit Total actual amount of
approved at 16,400 guarantee at 15,400
period-end(A3+B3+B3) period-end(A4+B4+B4)
The proportion of the total actual amount of guarantee in the
44.31%
net assets of the Company (A4+B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
8,400
related parties(D)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or 5,000
indirectly(E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 13,400
Explanations on possibly bearing joint and several liquidating
N/A
responsibilities for undue guarantees (if applicable)
Explanation on guarantee provided outside against regulations
N/A
(if applicable)
Explanation on guarantee with way of complex
Nil
30
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(1) Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period
3. Other significant contract
□ Applicable √ Not applicable
The Company has no other significant contract in Period.
4. Other significant transactions
□ Applicable √ Not applicable
The Company has no other significant transaction in Period.
X. Commitments from the Company or shareholders (with over 5% shares held) in or
continued to reporting period
□ Applicable √ Not applicable
The Company has no commitments from the Company or shareholders (with over 5% shares held) in or continued to reporting period
XI. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□Yes √No
The semi-annual report has not been audited.
XII. Penalty and rectification
□ Applicable √ Not applicable
The Company has no penalty or rectification in Period.
XIII. Risk disclosure of delisting with laws and rules violated
□ Applicable √ Not applicable
The Company has no delisting risks with laws and rules violated in Period.
XIV. Explanation on other significant events
√ Applicable □ Not applicable
Index of major events disclosed in the Year form the begin of the reporting period to the Report released:
event Date of disclosure Query index for appointed website of
information disclosure
Performance Forecast for 2014 2015.1.29 Juchao Website (www.cninfo.com.cn)
31
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Resolution notice of 24th meeting of 6th session of 2015.3.31 Juchao Website (www.cninfo.com.cn)
the Board
Resolution notice of 13th meeting of 7th session of 2015.3.31 Juchao Website (www.cninfo.com.cn)
supervisory committee
Summary of annual report of 2014 2015.3.31 Juchao Website (www.cninfo.com.cn)
Notice of provision for the devaluation of assets for 2015.3.31 Juchao Website (www.cninfo.com.cn)
year of 2014
Estimation of Routine Related Transaction for year 2015.3.31 Juchao Website (www.cninfo.com.cn)
of 2015
Guarantee offer to controlling subsidiary 2015.3.31 Juchao Website (www.cninfo.com.cn)
Performance Forecast for 1Q of 2015 2015.4.10 Juchao Website (www.cninfo.com.cn)
1Q Report of 2015 2015.4.28 Juchao Website (www.cninfo.com.cn)
Stock Trading Abnormal Fluctuation 2015.5.19 Juchao Website (www.cninfo.com.cn)
Stock Trading Abnormal Fluctuation 2015.6.3 Juchao Website (www.cninfo.com.cn)
Resolution notice of 26th meeting of 6th session of 2015.6.9 Juchao Website (www.cninfo.com.cn)
the Board
Notice of Annual General Meeting 2014 2015.6.9 Juchao Website (www.cninfo.com.cn)
Informed Notice of Convening annual general 2015.6.20 Juchao Website (www.cninfo.com.cn)
meeting of 2014
Resolution notice of annual general meeting of 2014 2015.7.1 Juchao Website (www.cninfo.com.cn)
Prompted Notice of Deferrable Time for the Board 2015.7.3 Juchao Website (www.cninfo.com.cn)
and Sueprvisory Committee
Notice of Letter of Commitement of Controlling 2015.7.10 Juchao Website (www.cninfo.com.cn)
Shareholder
Supplementary Annoucement of Letter of 2015.7.11 Juchao Website (www.cninfo.com.cn)
Commitement of Controlling Shareholder
Performance Forecast for Semi-Annual of 2015 2015.7.14 Juchao Website (www.cninfo.com.cn)
Resolution notice of 27th meeting of 6th session of 2015.7.15 Juchao Website (www.cninfo.com.cn)
the Board
Notice of Director and GM of the Company 2015.7.15 Juchao Website (www.cninfo.com.cn)
Resignation
Guarance Increase for Controlling Subsidiary 2015.7.15 Juchao Website (www.cninfo.com.cn)
Notice of Guarantee Offer to Enterprise whose 2015.7.15 Juchao Website (www.cninfo.com.cn)
Shares are Hold by the Company
Convening 1st extraordinary general meeting of 2015.7.15 Juchao Website (www.cninfo.com.cn)
2015
Informed Notice of Convening 1st extraordinary 2015.7.25 Juchao Website (www.cninfo.com.cn)
general meeting of 2015
Resolution notice of 1st extraordinary general 2015.8.1 Juchao Website (www.cninfo.com.cn)
meeting of 2015
32
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitalizat
New
Bonus ion of
Amount Ratio shares Others Subtotal Amount Ratio
shares public
issued
reserve
115,000,0 115,000,0
I. Unlisted shares 53.49% 53.49%
00 00
115,000,0 115,000,0
1. Sponsor’s shares 53.49% 53.49%
00 00
Including: state-owned 115,000,0 115,000,0
53.49% 53.49%
shares 00 00
100,000,0 100,000,0
II. Listed shares 46.51% 46.51%
00 00
2. Domestically listed 100,000,0 100,000,0
46.51% 46.51%
foreign shares 00 00
215,000,0 215,000,0
III. Total shares 100.00% 100.00%
00 00
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer for shares changed
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
Changes of total shares and shareholders structure as well as explanation on changes of assets and liability structure
□ Applicable √ Not applicable
II. Number of shares and shares held
In Share
33
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Total preference shareholders
Total common shareholders at with voting rights recovered at
10,718 0
end of reporting period end of reporting period (if
applicable) (see Note 8)
Particulars about shares held above 5% by common shareholders or top 10 common shares holding
Amount Amount Number of share pledged/frozen
Number
of of
of
Changes holding holding
common
Nature of Proportion of in unlisted listed
Shareholders shares
shareholder shares held reportin common common State of share Amount
held at
g period circulati circulati
period-e
on on
nd
shares shares
China Potevio
State-owned 115,000, 115,000,
Company 53.49% 0 0
corporate 000 000
Limited
Shanghai H.K.
6,524,68 2,490,03 6,524,68
Wanguo Overseas corporate 3.03% 0
12 1
Security
GUOTAI
JUNAN
5,879,09 5,879,09
SECURITIES( Overseas corporate 2.73% 762,538 0
1 1
HONGKONG)
LIMITED
Domestic nature 2,807,00 2,807,00
Zhang Huaian 1.31% 407,000 0
person 0 0
Domestic nature 2,007,11 2,007,11
Sun Huiming 0.93% 8,600 0
person 0 0
Domestic nature 1,772,49 1,772,49
Zheng Enyue 0.82% 751,760 0
person 4 4
Domestic nature 1,619,97 1,619,97
Gu Jinhua 0.75% 888,356 0
person 1 1
LI LEON Overseas natural 1,600,18 1,600,18
0.74% 1,500 0
ZHAN WEI person 9 9
YAO XIU Overseas natural 1,124,00 1,124,00
0.52% 75,804 0
GUANG person 0 0
CORE
PACIFIC-YAM
1,106,30 Unknow 1,106,30
AICHI Overseas corporate 0.51% 0
0n 0
INTERNATIO
NAL (H.K.)
34
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
LIMITED
Strategy investors or general
corporate becomes top 10 common
N/A
shareholders due to rights issued (if
applicable)(Note 3)
Explanation on associated Among the top ten shareholders, China Potevio Company Limited is neither a related party
relationship among the aforesaid nor a person acting in concert with the others. It’s unknown by the Company whether there are
shareholders related parties or persons acting in concert among the other shareholders.
Particulars about the shares held by the top ten unrestricted common shareholders
Amount of circulated common shares held at Type of shares
Shareholders
period-end Type Amount
Domestically
Shanghai H.K. Wanguo Security 6,524,681 listed foreign 6,524,681
shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 5,879,091 listed foreign 5,879,091
LIMITED shares
Domestically
Zhang Huaian 2,807,000 listed foreign 2,807,000
shares
Domestically
Sun Huiming 2,007,110 listed foreign 2,007,110
shares
Domestically
Zheng Enyue 1,772,494 listed foreign 1,772,494
shares
Domestically
Gu Jinhua 1,619,971 listed foreign 1,619,971
shares
Domestically
LI LEON ZHAN WEI 1,600,189 listed foreign 1,600,189
shares
Domestically
YAO XIU GUANG 1,124,000 listed foreign 1,124,000
shares
CORE PACIFIC-YAMAICHI Domestically
INTERNATIONAL (H.K.) 1,106,300 listed foreign 1,106,300
LIMITED shares
Domestically
Hu Xiaofeng 778,100 778,100
listed foreign
35
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
shares
Expiation on associated relationship
or consistent actors within the top
It is unknown whether the shareholders just mentioned belong to consistent actors or have
10 un-restrict common shareholders
associated relationship.
and between top 10 un-restrict
common shareholders and top 10
common shareholders
Explanation on top ten common
shareholders involving margin N/A
business (if applicable)(note 4)
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.
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Controlling shareholder of the Company has no changed in the Period
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Actual controller of the Company has no changed in the Period
IV. Share holding increasing plan proposed or implemented in reporting period from
shareholder of the Company and its concerted action person
□ Applicable √ Not applicable
No share holding increasing plan proposed or implemented in reporting period from shareholder of the Company and its concerted
action person as the Company knows.
36
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
37
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report
2014.
II. Change of directors, supervisors and senior executive
□ Applicable √ Not applicable
Directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report 2014.
38
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Section IX. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements (Attached below)
Section X. Documents available for reference
(I)Financial statement of the Company with signature and seal from the person in charge of the Company, person in charge of the
accounting works and person in charge of accounting;
(II)Original text of all documents of the Company as well as manuscript of the announcement that disclosed on website appointed by
CSRC
Board of Directors of
Nanjing Putian Telecommunications Co., ltd.
25 August 2015
39
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Nanjing Putian Telecommunications Co., Ltd.
Consolidated balance sheet as at June 30, 2015
(Expressed in Renminbi Yuan)
Note
Assets Closing balance Opening balance
No.
Current assets:
Cash and bank balances 1 301,776,103.29 394,586,647.76
Settlement funds
Lending funds
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable 2 24,013,653.27 34,375,641.37
Accounts receivable 3 1,037,211,398.03 770,808,856.85
Advances paid 4 44,689,575.27 31,630,604.30
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Interest receivable
Dividend receivable 5 1,000,000.00
Other receivables 6 32,806,696.34 32,392,793.23
Reverse-REPO financial assets
Inventories 7 425,197,002.29 455,031,864.93
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets 8 9,391,128.50 9,577,770.69
Total current assets 1,875,085,556.99 1,729,404,179.13
Non-current assets:
Loans and advances paid
Available-for-sale financial assets 9 741,953.00 741,953.00
Held-to-maturity investments
Long-term receivable
Long-term equity investments 10 186,581,088.32 184,932,925.28
40
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Investment property 11 31,779,555.64 32,351,447.02
Fixed assets 12 81,909,056.87 85,925,183.82
Construction in progress 13 22,249,800.08 20,079,624.08
Construction materials
Fixed assets disposal
Biological assets
Oil & gas assets
Intangible assets 14 27,486,010.50 28,150,303.44
Development expenditures
Goodwill
Long-term prepayments 15 1,621,021.44 1,274,592.46
Deferred tax assets
Other non-current assets
Total non-current assets 352,368,485.85 353,456,029.10
Total assets 2,227,454,042.84 2,082,860,208.23
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of accounting organ
Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd.
Consolidated balance sheet as at June 30, 2015 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance Opening balance
No.
Current liabilities:
Short-term borrowings 16 471,000,000.00 403,000,000.00
Central bank loans
Absorbing deposit and interbank deposit
Loans from other banks
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes payable 17 56,638,063.00 116,816,997.65
Accounts payable 18 1,090,326,852.46 920,559,456.30
Advances received 19 69,907,182.20 84,724,425.95
41
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Proceeds from sale of repurchase financial assets
Handling fee and commission payable
Employee benefits payable 20 18,177,524.77 18,693,324.81
Taxes and rates payable 21 10,616,331.90 10,224,153.45
Interest payable 22 661,594.44 691830.29
Dividend payable 23 1,692,213.38 1,946,045.39
Other payables 24 54,724,122.78 58,841,351.26
Reinsurance accounts payable
Reinsurance reserve
Deposit for agency security transaction
Deposit for agency security underwriting
Liabilities classified as held-for-sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,773,743,884.93 1,615,497,585.10
Non-current liabilities:
Long-term borrowings
Bonds payable
preferred shares
Sustainable debt
Long-term payables 25 80,118.00 80,118.00
Long-term employee benefits payable
Special payables
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 80,118.00 80,118.00
Total liabilities 1,773,824,002.93 1,615,577,703.10
Equity:
Share capital/Paid-in capital 26 215,000,000.00 215,000,000.00
Other equity instruments
preferred shares
Sustainable debt
Capital reserve 27 185,374,533.85 185,374,533.85
42
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Less: treasury shares
Other comprehensive income 28 -3,312,958.03 -3,318,496.10
Special reserve
Surplus reserve 29 589,559.77 589,559.77
General risk reserve
Undistributed profit 30 -50,079,448.31 -33,465,684.38
Total equity attributable to the parent company 347,571,687.28 364,179,913.14
Non-controlling interest 106,058,352.63 103,102,591.99
Total equity 453,630,039.91 467,282,505.13
Total liabilities & equity 2,227,454,042.84 2,082,860,208.23
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of accounting organ Qiu
Huizhen
43
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Nanjing Putian Telecommunications Co., Ltd.
Parent company balance sheet as at at June 30, 2015
(Expressed in Renminbi Yuan)
Note
Assets Closing balance Opening balance
No.
Current assets:
Cash and bank balances 166,712,952.30 184,370,348.86
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable 4,216,283.72 17,384,160.90
Accounts receivable 594,198,070.21 447,307,478.27
Advances paid 19,981,472.53 14,363,554.54
Interest receivable
Dividend receivable 1,000,000.00
Other receivables 30,190,052.56 27,627,713.81
Inventories 228,382,926.18 220,138,759.05
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets 17,146.15
25,588.19
Total current assets 1,043,698,903.65 912,217,603.62
Non-current assets:
Available-for-sale financial assets 741,953.00 741,953.00
Held-to-maturity investments
Long-term receivable
Long-term equity investments 355,643,196.64 353,997,743.21
Investment property
Fixed assets 24,413,459.38 25,901,856.49
Construction in progress 22,053,982.87 19,883,806.87
Construction materials
Fixed assets disposal
Biological assets
Oil & gas assets
44
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Intangible assets 8,255,241.75 8,798,271.64
Development expenditures
Goodwill
Long-term prepayments 1,175,465.44 1,274,592.46
Deferred tax assets
Other non-current assets
Total non-current assets 412,283,299.08 410,598,223.67
Total assets 1,455,982,202.73 1,322,815,827.29
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of accounting
organ Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd.
Parent company balance sheet as at June 30, 2015 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance Opening balance
No.
Current liabilities:
Short-term borrowings 356,000,000.00 326,000,000.00
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes payable 50,050,000.00 96,816,997.65
Accounts payable 641,081,887.95 448,950,237.16
Advances received 24,182,833.67 28,480,537.31
Employee benefits payable 7,387,053.95 7,530,723.41
Taxes and rates payable 3,962,535.78 122,888.33
Interest payable 504,333.33 558219.18
Dividend payable
Other payables 182,538,001.45 193,500,982.32
Liabilities classified as held-for-sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,265,706,646.13 1,101,960,585.36
45
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Non-current liabilities:
Long-term borrowings
Bonds payable
preferred shares
Sustainable debt
Long-term payables 80,118.00 80,118.00
Long-term employee benefits payable
Special payables
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 80,118.00 80,118.00
Total liabilities 1,265,786,764.13 1,102,040,703.36
Equity:
Share capital/Paid-in capital 215,000,000.00 215,000,000.00
Other equity instruments
preferred shares
Sustainable debt
Capital reserve 172,417,299.81 172,417,299.81
Less: treasury shares
Other comprehensive income
Special reserve
Surplus reserve 589,559.76 589,559.76
Undistributed profit -197,811,420.97 -167,231,735.64
Total equity 190,195,438.60 220,775,123.93
Total liabilities & equity 1,455,982,202.73 1,322,815,827.29
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of accounting organ
Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd.
Consolidated income statement for the year ending June 30, 2015
(Expressed in Renminbi Yuan)
46
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Note Current period Preceding period
Items
No. cumulative comparative
I. Total operating revenue 920,291,331.61 1,173,023,650.25
Including: operating revenue 1 920,291,331.61 1,173,023,650.25
Interest proceeds
Premium earned
Revenue from handling charges and commission
II. Total operating cost 935,557,534.38 1,177,400,953.61
Including: operating cost 1 759,205,839.90 1,008,242,535.79
Interest expenses
Handling charges and commission expenditures
Surrender value
Net payment of insurance claims
Net provision of insurance reserve
Premium bonus expenditures
Reinsurance expenses
Taxes & surcharge for operations 2 5,012,146.96 3,109,272.27
Selling expenses 3 85,374,312.00 84,634,467.99
Administrative expenses 4 68,807,167.70 64,294,527.99
Financial expense 5 11,250,520.74 15,922,237.55
Assets impairment loss 6 522,337.69 1,197,912.02
Add: gains on changes of fair value(or less: losses)
Investment income (or less: losses) 7 1,648,163.04 227,042.96
Including: investment income from associates and joint
1,648,163.04 227,042.96
ventures
Gains on foreign exchange (or less: losses)
III. Operating profit (or less: losses) -8,232,830.34 -4,150,260.40
Add: Non-operating revenue 8 3,067,608.51 4,748,462.85
Including: Gains on disposal of non-current assets 910.50
Less: Non-operating expenditures 9 77,280.39 413,073.73
Including: losses on disposal of fixed assets 44,708.03 105,658.79
IV. Profit before tax (or less: total loss) -5,242,502.22 185,128.72
Less: income tax 10 8,415,501.07 5,248,812.79
V.Net profit (or less: net loss) -13,658,003.29 -5,063,684.07
47
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Net profit attributable to owners of parent company -16,613,763.93 -9,418,674.05
Non-controlling interest income 2,955,760.64 4,354,989.98
VI. Other comprehensive income after tax 5,538.07 -153,920.61
Items after tax of other comprehensive income
5,538.07 1,220.16
attributable to owners of parent company
(I) Not reclassified subsequently to profit or loss
Including: Changes in remeasurement on the net
defined benefit liability/asset
Items attributable to investees under equity method
that will not reclassified to profit or loss
(II) To be reclassified subsequently to profit or loss 5,538.07 -153,920.61
Including: Items attributable to investees under equity
method that may be reclassified to profit or loss
Profit or loss from changes in fair value of
available-for-sale financial assets
Profit or loss from reclassification of held-to-maturity
investments as available-for-sale assets
Profit or loss on cash flow hedging
Translation difference of financial statements in
5,538.07 -153,920.61
foreign currencies
Others
Items after tax of other comprehensive income
attibutable to non-controlling interest
VII. Total comprehensive income -13,652,465.22 -5,217,604.68
Including: Items attributable to owners of parent
-16,608,225.86 -9,572,594.66
company
Items attributable to non-controlling interest 2,955,760.64 4,354,989.98
VIII. Earnings per share:
(I) Basic EPS -0.08 -0.04
(II) Diluted EPS -0.08 -0.04
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of
accounting organ Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd.
Parent company income statement for the year ending June 30, 2015
(Expressed in Renminbi Yuan)
48
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Note Current period Preceding period
Items
No. cumulative comparative
I. Operating revenue 396,908,252.57 614,677,489.24
Less: Operating cost 352,107,525.66 552,638,621.78
Taxes & surcharge for operations 1,373,939.17 1,157,827.97
Selling expenses 38,190,178.12 41,612,512.74
Administrative expenses 27,415,421.98 28,264,465.63
Financial expense 9,917,479.76 13,816,618.39
Assets impairment loss 1,058,113.49 11,032.50
Add: Gain on changes of fair value (or less: losses)
Investment income (or less: losses) 1,645,453.43 157,112.33
Including: investment income from associates and joint ventures 1,645,453.43 157,112.33
II. Operating profit(or less: losses) -31,508,952.18 -22,666,477.44
Add: Non-operating revenue 950,239.83 15,276.00
Including: Gains on disposal of non-current assets
Less: Non-operating expenditures 20,972.98 160,838.93
Including: losses on disposal of non-current assets 20,395.52
III. Profit before tax (or less: total loss) -30,579,685.33 -22,812,040.37
Less: income tax
IV. Net profit (or less: net loss) -30,579,685.33 -22,812,040.37
V. Other comprehensive income after tax
(I) Not reclassified subsequently to profit or loss
Including: Changes in remeasurement on the net defined benefit
liability/asset
Items attributable to investees under equity method that will not
reclassified to profit or loss
(II) To be reclassified subsequently to profit or loss
Including: Items attributable to investees under equity method
that may be reclassified to profit or loss
Profit or loss from changes in fair value of available-for-sale
financial assets
Profit or loss from reclassification of held-to-maturity
investments as available-for-sale assets
Profit or loss on cash flow hedging
Translation difference of financial statements in foreign
currencies
49
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Others
VI. Total comprehensive income -30,579,685.33 -22,812,040.37
VII. Earnings per share:
(I) Basic EPS -0.14 -0.11
(II) Diluted EPS -0.14 -0.11
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of accounting
organ Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd.
Consolidated cash flow statement for the year ending June 30, 2015
(Expressed in Renminbi Yuan)
Current period Preceding period
Items Note No.
cumulative comparative
I.Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 947,806,725.98 1,229,120,473.25
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash receipts of original insurance contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and investment
Net increase of trading financial assets disposal
Cash receipts from interest, handling charges and commission
Net increase of loans from others
Net increase of repurchase
Receipts of tax refund 1,925,226.34 1,555,477.70
Other cash receipts related to operating activities 32,000,450.24 56,541,699.10
1
Subtotal of cash inflows from operating activities 981,732,402.56 1,287,217,650.05
Cash payments for goods purchased and services received 840,760,420.23 1,091,173,084.56
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank deposit
Cash payment of insurance indemnities of original insurance
contracts
Cash payment of interest, handling charges and commission
50
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Cash payment of policy bonus
Cash paid to and on behalf of employees 113,838,714.35 102,021,641.36
Cash payments of taxes and rates 52,846,836.31 46,730,180.60
Other cash payments related to operating activities 110,163,886.25 103,807,526.32
2
Subtotal cash outflows from operating activities 1,117,609,857.14 1,343,732,432.84
Net cash flows from operating activities -135,877,454.58 -56,514,782.79
II. Cash flows from investing activities:
Cash received from return of investments 10,657,600.00
Cash received from return on investments 1,000,000.00 297,840.00
Net cash received from the disposal of fixed assets,
8,332.00 1,220.16
intangible assets and other long-term assets
Net cash received from the disposal of subsidiaries & other
business units
Other cash receipts related to investing activities 3,277,688.08
3
Subtotal of cash inflows from investing activities 1,008,332.00 14,234,348.24
Cash paid for acquiring fixed assets, intangible assets and
3,656,112.06 7,126,115.03
other long-term assets
Cash paid for acquiring investments
Net increase of pledged loans
Net cash paid for acquiring subsidiaries & other business
units
Other cash payments related to investing activities
Subtotal of cash outflows from investing activities 3,656,112.06 7,126,115.03
Net cash flows from investing activities -2,647,780.06 7,108,233.21
III. Cash flows from financing activities:
Cash received from investment by others
Including: cash received by subsidiaries from non-controlling
owners
Cash received from borrowings 351,000,000.00 194,000,000.00
Cash received from issuing of bonds
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 351,000,000.00 194,000,000.00
Cash repayments of borrowings 283,000,000.00 171,000,000.00
Cash paid for distribution of dividends or profits and for
13,274,326.00 17,579,276.41
interest expenses
51
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Including: cash paid for distribution of dividends or profits by
subsidiaries to minority owners
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 296,274,326.00 188,579,276.41
Net cash flows from financing activities 54,725,674.00 5,420,723.59
IV. Effect of foreign exchange rate changes on cash & cash
10,001.55 59,150.36
equivalents
V. Net increase in cash and cash equivalents -83,789,559.09 -43,926,675.63
Add: Opening balance of cash and cash equivalents 375,372,939.94 402,037,725.25
VI. Closing balance of cash and cash equivalents 291,583,380.85 358,111,049.62
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in
charge of accounting organ Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd.
Parent company cash flow statement for the year ending June 30, 2015
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods and rendering of services 357,510,754.37 609,353,898.33
Receipts of tax refund 110,575.42
Other cash receipts related to operating activities 10,289,604.22 31,438,573.22
Subtotal of cash inflow from operating activities 367,800,358.59 640,903,046.97
Cash payments for goods purchased and services received 280,463,237.00 556,164,809.62
Cash payments to and on behalf of employees 47,975,045.22 46,706,605.47
Cash payments of taxes and rates 8,368,189.23 9,946,758.24
Other cash payments related to operating activities 66,557,911.25 43,091,916.57
Subtotal of cash outflows from operating activities 403,364,382.70 655,910,089.90
Net cash flows from operating activities -35,564,024.11 -15,007,042.93
II. Cash flows from investing activities:
Cash received from return of investments 10,657,600.00
Cash received from investments gains 1,000,000.00 297,840.00
Net cash receipts from disposals of fixed assets, intangible assets
6,132.00
and other long-term assets
Net cash receipts from disposals of subsidiaries and other business
52
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
units
Other cash receipts related to investing activities
Subtotal of cash inflow from investing activities 1,006,132.00 10,955,440.00
Cash payments to acquire fixed assets, intangible assets and other
3,019,775.68 2,302,703.48
long-term assets
Cash payments to acquire investments
Net cash payments for acquisitions of subsidiaries and other
business units
Other cash payments related to investing activities
Subtotal of cash outflows from investing activities 3,019,775.68 2,302,703.48
Net cash flows from investing activities -2,013,643.68 8,652,736.52
III. Cash flows from financing activities:
Cash receipts from investment by others
Cash receipts from borrowings 276,000,000.00 136,000,000.00
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 276,000,000.00 136,000,000.00
Cash repayments of borrowings 246,000,000.00 136,000,000.00
Cash payments for distribution of dividends or profit or interest
10,097,006.77 14,492,578.87
expenses
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 256,097,006.77 150,492,578.87
Net cash flows from financing activities 19,902,993.23 -14,492,578.87
IV. Effect of foreign exchange rate changes on cash and cash
17,278.00 103,473.36
equivalents
V. Net increase in cash and cash equivalents -17,657,396.56 -20,743,411.92
Add: Opening balance of cash and cash equivalents 184,370,348.86 217,989,348.06
VI. Closing balance of cash and cash equivalents 166,712,952.30 197,245,936.14
Principal of the Company：Li Linzhen Person in charger of accounting work：Shi Lian Person in charge of
accounting organ Qiu Huizhen
53
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Nanjing Putian Telecommunications Co., Ltd.
Consolidated statement of changes in equity for the year ending June 30, 2015
(Expressed in Renminbi Yuan)
Current period cumulative
Equity attributable to parent company
Share General
Items
capital Other equity instruments Capital Less: Surplus risk Undistributed Total equity
Other
/Paid-in preferred Sustainable treasury comprehensive Special Non-controlling
reserve profit
capital shares debt Others reserve shares income reserve reserve interest
I. Balance at the end of prior year 215,000,000.00 - - - 185,374,533.85 - -3,318,496.10 - 589,559.77 - -33,465,684.38 103,102,591.99 467,282,505.13
Add: cumulative changes of accounting
-
policies
Error correction of prior period -
Business combination under common
-
control
Others -
II. Balance at the beginning of current year 215,000,000.00 - - - 185,374,533.85 - -3,318,496.10 - 589,559.77 - -33,465,684.38 103,102,591.99 467,282,505.13
III. Current period increase (or less:
- - - - - - 5,538.07 - - - -16,613,763.93 2,955,760.64 -13,652,465.22
decrease)
(I) Other comprehensive income 5,538.07 -16,613,763.93 2,955,760.64 -13,652,465.22
(II) Capital contributed or withdrew by - - - - - - - - - - - - -
54
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
owners
1. Capital contributed by owners - - -
2. Capital contributed by other equity
- - -
instruments’ owners
3. Amount of share-based payment
- - -
included in equity
4. Others - - -
(III) Profit distribution - - - - - - - - - - - - -
1. Appropriation of surplus reserve - - -
2. Appropriation of general risk reserve - - -
3. Appropriation of profit to owners - - -
4. Others - - -
(IV) Internal carry-over within equity - - -
1.Transfer of capital reserve to capital - - -
2.Transfer of surplus reserve to capital - - -
3.Surplus reserve to cover losses - - -
4.Others - - -
(V) Special reserve - - -
1. Appropriation of current period - - -
2. Application of current period - - -
(VI) Others - - -
IV. Balance at the end of current period 215,000,000.00 - - - 185,374,533.85 - -3,312,958.03 - 589,559.77 - -50,079,448.31 106,058,352.63 453,630,039.91
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of accounting organ Qiu Huizhen
55
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Nanjing Putian Telecommunications Co., Ltd.
Consolidated statement of changes in equity for the year ending June 30, 2015 (continued)
(Expressed in Renminbi Yuan)
Preceding period cumulative
Equity attributable to parent company
Share General
Items
capital Other equity instruments Capital Less: Surplus risk Undistributed Total equity
Other
/Paid-in preferred Sustainable treasury comprehensive Special Non-controlling
reserve profit
capital shares debt Others reserve shares income reserve reserve interest
I. Balance at the end of prior year 215,000,000.00 185,374,533.85 -3,264,432.90 589,559.77 -14,489,140.50 85,253,562.95 468,464,083.17
Add: cumulative changes of accounting
-
policies
Error correction of prior period -
Business combination under common
-
control
Others -
II. Balance at the beginning of current year 215,000,000.00 185,374,533.85 - -3,264,432.90 - 589,559.77 - -14,489,140.50 85,253,562.95 468,464,083.17
III. Current period increase (or less:
- - - - - - -54,063.20 - - - -18,976,543.88 17,849,029.04 -1,181,578.04
decrease)
(I) Other comprehensive income -54,063.20 -18,976,543.88 10,451,987.23 -8,578,619.85
56
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(II) Capital contributed or withdrew by
13,070,341.81 13,070,341.81
owners
1. Capital contributed by owners -
2. Capital contributed by other equity
-
instruments’ owners
3. Amount of share-based payment
-
included in equity
4. Others 13,070,341.81 13,070,341.81
(III) Profit distribution -5,673,300.00 -5,673,300.00
1. Appropriation of surplus reserve -
2. Appropriation of general risk reserve -
3. Appropriation of profit to owners -5,673,300.00 -5,673,300.00
4. Others -
(IV) Internal carry-over within equity -
1.Transfer of capital reserve to capital -
2.Transfer of surplus reserve to capital -
3.Surplus reserve to cover losses -
4.Others -
(V) Special reserve -
1. Appropriation of current period -
2. Application of current period -
(VI) Others -
57
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
IV. Balance at the end of current period 215,000,000.00 - - - 185,374,533.85 - -3,318,496.10 - 589,559.77 - -33,465,684.38 103,102,591.99 467,282,505.13
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of accounting organ Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd.
Parent company statement of changes in equity for the year ending June 30, 2015
(Expressed in Renminbi Yuan)
Current period cumulative
Other equity instruments Capital Less: Surplus Undistributed
Items Other
Share capital
preferred Sustainable treasury comprehensive Special Total equity
/Paid-in capital profit
shares debt Others reserve shares income reserve reserve
I. Balance at the end of
215,000,000.00 172,417,299.81 589,559.76 -167,231,735.64 220,775,123.93
prior year
Add: cumulative changes
of accounting policies
Error correction of prior
period
Others
II. Balance at the beginning
215,000,000.00 172,417,299.81 589,559.76 -167,231,735.64 220,775,123.93
of current year
III. Current period increase
-30,579,685.33 -30,579,685.33
(or less: decrease)
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(I) Other comprehensive
-30,579,685.33 -30,579,685.33
income
(II) Capital contributed or
withdrew by owners
1. Capital contributed by
owners
2. Capital contributed by
other equity instruments’
owners
3. Amount of share-based
payment included in equity
4. Others
(III) Profit distribution
1. Appropriation of surplus
reserve
2. Appropriation of profit
to owners
3. Others
(IV) Internal carry-over
within equity
1.Transfer of capital
reserve to capital
2.Transfer of surplus
reserve to capital
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
3.Surplus reserve to cover
losses
4.Others
(V) Special reserve
1. Appropriation of current
period
2. Application of current
period
(VI) Others
IV. Balance at the end of
215,000,000.00 - - - 172,417,299.81 - - - 589,559.76 -197,811,420.97 190,195,438.60
current period
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of accounting organ Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd.
Parent company statement of changes in equity for the year endingJune 30, 2015 (continued)
(Expressed in Renminbi Yuan)
Preceding period cumulative
Share
Other equity instruments Capital Less: Surplus Undistributed
Items capital Total
Other
/Paid-in equity
preferred Sustainable treasury comprehensive Special profit
capital
shares debt Others reserve shares income reserve reserve
I. Balance at the end of prior year
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
215,000,000.00 172,417,299.81 589,559.76 -109,126,477.65 278,880,381.92
Add: cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year
215,000,000.00 - - - 172,417,299.81 - - - 589,559.76 -109,126,477.65 278,880,381.92
III. Current period increase (or less: decrease)
- - - - - - - - - -58,105,257.99 -58,105,257.99
(I) Other comprehensive income
-58,105,257.99 -58,105,257.99
(II) Capital contributed or withdrew by owners
1. Capital contributed by owners
2. Capital contributed by other equity instruments’ owners
3. Amount of share-based payment included in equity
4. Others
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of profit to owners
3. Others
(IV) Internal carry-over within equity
1.Transfer of capital reserve to capital
2.Transfer of surplus reserve to capital
3.Surplus reserve to cover losses
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
4.Others
(V) Special reserve
1. Appropriation of current period
2. Application of current period
(VI) Others
IV. Balance at the end of current period
215,000,000.00 172,417,299.81 589,559.76 -167,231,735.64 220,775,123.93
Principal of the Company：Li Linzhen Person in charge of accounting work：Shi Lian Person in charge of accounting organ Qiu Huizhen
62
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
For the 6-month ended June 30, 2015
Monetary unit: RMB Yuan
I. Company profile
Nanjing Putian Telecommunications Co., Ltd. (the “Company”) is the original Nanjing Telecommunication Facility Factory. It was
established as a limited company by raising money which is approved by National Economic Institutional Reform Commission
with its TGS (1997) No. 28 issued on 21 March, 1997. The company was listed in Shenzhen Stock Exchange on 22 May, 1997. The
Company’s registration address is No. 1 Putian Road, Qinhuai District Nanjing, Jiangsu Province. The company acquired a corporate
business license numbered 320000400000500, with registered capital of 215,000,000.00 yuan, total share of 215,000,000.00 shares
(each with par value of one yuan).
The Company belongs to telecommunication equipment manufacture industry and is mainly engaged in researching and
manufacturing the data, wire and wireless telecommunication equipment, distribution and allocation of layout of telecommunication
product, and in researching and manufacturing media computer, digital television and vehicle electronics. The research and sale of
video conference system with providing the related after-sales service, including installation, maintenance and repairmen of
equipment. The design of telecommunication information net project and computer information systematic project, and provision of
related system combination and related consultancy service also are included in the Company’s business scope.
Approved by the 28th meeting of the sixth session of the Board of Directors, these financial statements have been reported on August
21, 2015.
The Company has brought 11 subsidiaries including Nanjing South Telecommunications Company Limited, Nanjing Putian
Intelligent Building Ltd. and Nanjing Mennekes Electrics Co., Ltd. etc. into the consolidated scope. Please refer to notes to changes
in the consolidated scope and equity in other entities for details.
II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements have been prepared on the basis of going concern.
(II) Assessment of the ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue as a going concern
within the 12 months after the balance sheet date.
III. Significant accounting policies and estimates
The specific accounting policies and accounting estimates tip:
According to the relevant provisions of Accounting Standards for Business Enterprises (CASBEs), the Company and its subsidiaries,
mainly engaged in the production and sales of communications equipment, made several specific accounting policies and accounting
estimates for the provision for bad debts of accounts receivable, depreciation of fixed assets, revenue recognition and other
transactions and events based on the characteristics of actual business. Please refer to the description of Notes 11-Receivables, Notes
16- Fixed assets and Notes 24- Income.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(I) Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting Standards for Business
Enterprises (CASBEs), and present truly and completely the financial position, results of operations and cash flows of the Company.
(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
(III) Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is classified as current if it is expected to be
realized or due within 12 months.
(IV) Functional currency
The Company’s functional currency is Renminbi (RMB) Yuan.
(V) Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined party included in the
consolidated financial statements of the ultimate controlling party at the combination date. Difference between carrying amount of
the equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that of the
combination consideration or total par value of shares issued is adjusted to capital reserve, if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date, the
excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and contingent liabilities, and the
measurement of the combination cost are reviewed, then the difference is recognized in profit or loss.
(VI) Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into its consolidation scope. The consolidated financial
statements are compiled by the parent company according to “CASBE 33 - Consolidated Financial Statements”,
based on relevant information and the financial statements of the parent company and its subsidiaries.
(VII) Classification of joint arrangements and accounting treatment of joint operations
1. Joint arrangements include joint operations and joint ventures.
2. When the Company is a joint operator of a joint operation, it recognizes in relation to its interest in a joint
operation:
(1) Its assets, including its share of any assets held jointly;
(2) Its liabilities, including its share of any liabilities incurred jointly;
(3) Its revenue from the sale of its share of the output arising from the joint operation;
(4) Its share of the revenue from the sales of the output by the joint operation; and
(5) Its expenses, including its share of any expenses incurred jointly.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(VIII) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash
equivalents refer to short-term, highly liquid investments that can be readily converted to cash and that are subject
to an insignificant risk of changes in value.
(IX) Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at the
transaction date at initial recognition. At the balance sheet date, monetary items denominated in foreign currency
are translated at the spot exchange rate at the balance sheet date with difference, except for those arising from the
principal and interest of exclusive borrowings eligible for capitalization, included in profit or loss; non-cash items
carried at historical costs are translated at the spot exchange rate at the transaction date, with its RMB amount
unchanged; non-cash items carried at fair value in foreign currency are translated at the spot exchange rate at the
date when the fair value was determined, with difference included in profit or loss or other comprehensive
income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot rate at the balance sheet date; the
equity items, other than undistributed profit, are translated at the spot rate at the transaction date; the revenues and
expenses in the income statement are translated into RMB at the approximate exchange rate similar to the
systematically and rationally determined spot exchange rate at the transaction date. The difference arising from
foreign currency translation is included in other comprehensive income.
(X) Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following four categories when initially recognized: financial assets at fair
value through profit or loss (including held-for-trading financial assets and financial assets designated at initial
recognition as at fair value through profit or loss), held-to-maturity investments, loans and receivables, and
available-for-sale financial assets.
Financial liabilities are classified into the following two categories when initially recognized: financial liabilities
at fair value through profit or loss (including held-for-trading financial liabilities and financial liabilities
designated at initial recognition as at fair value through profit or loss), and other financial liabilities.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial
liability. The financial assets and financial liabilities initially recognized by the Company are measured at fair
value; for the financial assets and liabilities at fair value through profit or loss, the transaction expenses thereof are
directly included in profit or loss; for other categories of financial assets and financial liabilities, the transaction
expenses thereof are included into the initially recognized amount.
The Company measures its financial assets at fair value subsequent to initial recognition, and does not deduct the
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
transaction expenses that may occur when it disposes of the said financial asset in the future. However, those
under the following circumstances are excluded: (1) the held-to-maturity investments, loans and receivables are
measured at amortized costs using effective interest method; (2) the equity instrument investments for which there
is no quotation in the active market and whose fair value cannot be measured reliably, and the derivative financial
assets which are connected with the said equity instrument and must be settled by the delivery of the said equity
instrument are measured at their costs.
The Company measures its financial liabilities at the amortized costs using effective interest method, with the
exception of those under the following circumstances: (1) for the financial liabilities at fair value through profit or
loss, they are measured at fair value, and none of the transaction expenses may be deducted, which may occur
when the financial liabilities are settled in the future; (2) for the derivative financial liabilities, which are
connected to the equity instrument for which there is no quotation in the active market and whose fair value
cannot be reliably measured, and which must be settled by the delivery of the equity instrument, they are
measured at their costs; (3) for the financial guarantee contracts which are not designated as a financial liability at
fair value through profit or loss, and for the commitments to grant loans which are not designated as at fair value
through profit or loss and which will enjoy an interest rate lower than that of the market, they are measured
subsequent to initial recognition at the higher of the following two items 1) The amount as determined according
to “CASBE13 - Contingencies”; 2) the surplus after accumulative amortization as determined according to
“CASBE14 - Revenues”.
The gains or losses arising from changes in fair value of financial assets or financial liabilities, if not related to
hedging, are measured with the following methods: (1) Gains or losses, arising from the changes in fair value of
financial asset or liability at its fair value through profit or loss, is included in gains or losses on changes in fair
value; interests or cash dividends gained during the asset-holding period are recognized as investment income;
when disposing of the assets, investment income is recognized at the difference between the actual amount
received and the initial recorded amount, at the same time, gains or losses on changes in fair value are adjusted
accordingly. (2) For available-for-sale financial asset, changes in fair value are recorded as other comprehensive
income during the holding period, interests measured at effective interest method are recorded as investment
income; cash dividends from available-for-sale equity instrument investment are recognized as investment income
at the date of dividend declaration; when disposing of the assets, investment income is recognized at the
difference between the actual amount received and the book value deducting the accumulative amount of changes
in fair value originally included in other comprehensive.
Financial assets are derecognized when the contractual rights for collecting the cash flow of the said financial assets expire or
substantially all risks and rewards related to the said financial assets have been transferred. Only when the underlying present
obligations of a financial liability are relieved totally or partly may the financial liability be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the
financial asset to the transferee, it derecognizes the financial asset. If it retained substantially all of the risks and
rewards related to the ownership of the financial asset, it continues recognizing the financial asset, and the
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
consideration received is recognized as a financial liability. Where the Company does not transfer or retain
substantially all of the risks and rewards related to the ownership of a financial asset, it is dealt with according to
the circumstances as follows respectively: (1) if the Company gives up its control over the financial asset, it
derecognizes the financial asset; (2) if the Company does not give up its control over the financial asset, according
to the extent of its continuing involvement in the transferred financial asset, it recognizes the related financial
asset and recognizes the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the
amounts of the following two items are included in profit or loss: (1) the book value of the transferred financial
asset; (2) the sum of consideration received from the transfer, and the accumulative amount of the changes of the
fair value originally included in equity. If the transfer of financial asset partially satisfies the conditions to
derecognition, the entire book value of the transferred financial asset is, between the portion which is
derecognized and the portion which is not, apportioned according to their respective relative fair value, and the
difference between the amounts of the following two items are included into profit or loss: (1) the book value of
the portion which is derecognized; (2) the sum of consideration of the portion which is derecognized, and the
portion of the accumulative amount of the changes in the fair value originally included in equity which is
corresponding to the portion which is derecognized.
4. Fair value determination method of financial assets and liabilities
The Company use valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the following hierarchy and used
accordingly:
(1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the
measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for
identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset
or liability, for example, interest rates and yield curves observable at commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not observable and
cannot be corroborated by observable market data at commonly quoted intervals, historical volatility, future cash flows to be paid to
fulfill the disposal obligation assumed in business combination, and financial forecast developed using the Company’s own data, etc.
5. Impairment test and provision for impairment loss of financial assets
(1) An impairment test is carried out at the balance sheet date on the financial assets other than those at fair value
through profit or loss, and provisions for impairment loss should be made if there is objective evidence indicating
impairment loss.
(2) An impairment test is made on an individual basis on financial assets of individually significant amount; with
regard to the financial assets of individually insignificant amount, they may be included in a portfolio of financial
assets with similar credit risk features so as to carry out an impairment-related test; where, upon the impairment
test on an individual basis, the financial asset (including those financial assets of individually significant amount
67
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
and of individually insignificant amount) in not impaired, it is included in a portfolio of financial assets with
similar credit risk features so as to conduct further impairment test.
(3) Available-for-sale financial assets
1) Objective evidence indicating that available-for-sale debt instrument investments may be impaired includes:
a. significant financial difficulties in the debtor;
b. breach of contract by the debtor, such as principal or interest past due or default;
c. concessions made to debtors with financial difficulties considering economic and legal factors;
d. it is highly probable that the debtor is going to dissolve or going through other terms of financial restructuring;
e. owing to significant financial difficulties occurred to the debtor, the debt instrument is discontinued to trade in
active market; or
f. Other circumstances indicating that available-for-sale debt instrument may be impaired.
2) Evidence indicating that available-for-sale equity instrument investment may be impaired includes the fair value of equity
instrument investment is suffered from significant or non-temporary decline.
The Company performs review on available-for-sale equity instrument investment on an individual basis at the balance sheet date, if
the balance sheet date fair value is 50% or above lower than the cost, or the balance sheet date fair value has been lower than the cost
for a consecutive of 12 months or longer, it is determined that such equity instrument investment is impaired; if the balance sheet date
fair value is 20% or above but not exceeding 50% lower than the cost, or the balance sheet date fair value has been lower than the
cost for a consecutive of 6 months or longer but not exceeding 12 months, the Company may take other factors such as price
volatility into consideration in determining whether such equity instrument investment is impaired.
When available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value that has been recognized
directly in equity is reclassified to impairment loss. If, after an impairment loss has been recognized on available-for-sale debt
instrument investment, there is objective evidence of a recovery in value of the financial asset which can be related objectively to an
event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss.
Subsequent fair value increase in available-for-sale debt instrument investment whose impairment loss has been recognized is
directly recognized in equity.
(XI) Receivables
1. Receivables of individually significant amount and with provision made on an individual basis
Judgment basis or amount criteria of
Receivables amounting to more than 10 million yuan
individually significant amount
Provision method for receivables of Provisions are made on the difference between the lower of
individually significant amount and with present value of future cash flow and their carrying amount based
provision made on an individual basis on impairment testing on an individual basis.
2. Receivables with provision made on a collective basis using portfolios with similar credit risk features
(1) Specific portfolios and provision method
Provision method of provision being made on collective basis using portfolios with similar credit risk features:
Portfolio 1 Grouped with related party balances within the consolidation scope
Portfolio 2 Grouped with age
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Portfolios and provision method
Portfolio 1 No provision
Portfolio 2 Age analysis method
(2) Age analysis method
Ages Proportion of provision for Proportion of provision for other
accounts receivable (%) receivables (%)
Within 1 year (inclusive, the
0 0
same hereinafter)
1-2 years 0 0
2-3 years 10 10
3-4 years 30 30
4-5 years 40 40
5-6 years 80 80
Over 6 years 100 100
3. Receivables of individually insignificant amount but with provision made on an individual basis
An impairment test for an individual basis with objective evidence
Reasons for provision made on an
individual basis showing it becomes impaired
Provision method Provision method made on an individual basis
For other receivables such as notes receivable, interest receivable and long-term receivable, etc., provision for bad debts is made at
the difference between the present value of future cash flow and the carrying amount.
(XII) Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in process in the process of
production, and materials or suppliers etc. to be consumed in the production process or in the rendering of services.
2. Accounting method for dispatching inventories:
Inventories dispatched from storage are accounted for with moving average method.
3. Basis for determining net realizable value
At the balance sheet date, inventories are measured at the lower of cost or net realizable value; provisions for inventory write-down
are made on the excess of its cost over the net realizable value. The net realizable value of inventories held for sale is determined
based on the amount of the estimated selling price less the estimated selling expenses and relevant taxes and surcharges in the
ordinary course of business; the net realizable value of materials to be processed is determined based on the amount of the estimated
selling price less the estimated costs of completion, selling expenses and relevant taxes and surcharges in the ordinary course of
business; at the balance sheet date, when only part of the same item of inventories have agreed price, their net realizable value is
determined separately and is compared with their costs to set the provision for inventory write-down to be made or reversed.
4. Inventory system
Perpetual inventory method is adopted.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
5. Amortization method of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized with one-off method.
(2) Packages
Packages are amortized with one-off method.
(XIII) Assets classified as held-for-sale
Non-current assets (excluding financial assets) are accounted for as held-for-sale when the following conditions are all met: a. the
component must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales
of such component; b. the Company has made a decision on the disposal of the component; c. the Company has signed an irrevocable
transfer agreement with the transferee; and d. the transfer is expected to be completed within one year.
(XIV) Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that it makes payment in cash,
transfers non-cash assets, assumes its liabilities or issues equity securities, on the date of combination, it regards the share of the
carrying amount of the equity of the combined party included the consolidated financial statements of the ultimate controlling party
as the initial cost of the investment. The difference between the initial cost of the long-term equity investment and the carrying value
of the combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
When long-term equity investments are obtained through business combination under common control achieved in stages, the
Company determines whether it is a “package deal”.
If it is a “package deal”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “package deal”,
investment cost is initially recognized at the share of the carrying amount of net assets of the combined party included the
consolidated financial statements of the ultimate controlling party. The difference between the acquisition-date investment cost of
long-term equity investments and the carrying amount of the previously held long-term equity investments plus the carrying amount
of the consideration paid for the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to
offset, any excess is adjusted to retained earnings.
(2) For business combination not under common control, investment cost is initially recognized at the acquisition-date fair value of
considerations paid.
When long-term equity investments are obtained through business combination not under common control achieved in stages, the
Company determined whether they are stand-alone financial statements or consolidated financial statements in accounting treatment:
1) In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amount of the previously held
long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity.
2) In the case of consolidated financial statements, the Company determines whether it is a “package deal”.
If it is a “package deal”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “package deal”, the
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
carrying value of the acquirer’s previously held equity interest in the acquire is remeasured at the acquisition-date fair value, and the
difference between the fair value and the carrying amount is recognized in investment income; when the acquirer’s previously held
equity interest in the acquire involves other comprehensive income under equity method, the related other comprehensive income is
reclassified as income for the acquisition period, excluding other comprehensive income arising from changes in net liabilities or
assets from remeasurement of defined benefit plan of the acquiree.
(3) Long-term equity investment obtained through ways other than business combination: the initial cost of a long-term equity
investment obtained by making payment in cash is the purchase cost which is actually paid; that obtained on the basis of issuing
equity securities is the fair value of the equity securities issued; that obtained through debt restructuring is determined according to
“CASBE12 - Debt Restructuring”; and that obtained through non-cash assets exchange is determined according to “CASBE7 -
Non-cash Assets Exchange”.
3. Subsequent measurement and recognition method of gain or loss
For long-term equity investment with control relationship, it is accounted for with cost method; for long-term equity investment with
joint control or significant influence relationship, it is accounted for with equity method.
4. Disposal of a subsidiary in stages resulting in the Company’s loss of control
(1) Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained thereof is recognized in profit or
loss. If the disposal does not result in the Company’s loss of significant influence or joint control, the remained equity is accounted
for with equity method; however, if the disposal results in the Company’s loss of control, joint control, or significant influence, the
remained equity is reclassified as available-for-sale financial assets at fair value.
(2) Consolidated financial statements
1) Disposal of a subsidiary in stages not qualified as “package deal” resulting in the Company’s loss of control
Before the Company’s loss of control, the difference between the disposal consideration and the proportionate share of net assets in
the disposed subsidiary from acquisition date or combination date to the disposal date is adjusted to capital reserve (capital premium),
if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
When the Company loses control, the remained equity is remeasured at the loss-of-control-date fair value. The aggregated value of
disposal consideration and the fair value of the remained equity, less the share of net assets in the disposed subsidiary held before the
disposal from the acquisition date or combination date to the disposal date is recognized in investment income in the period when the
Company loses control over such subsidiary, and meanwhile goodwill is offset correspondingly. Other comprehensive income related
to equity investments in former subsidiary is reclassified as investment income upon the Company’s loss of control.
2) Disposal of a subsidiary in stages qualified as “package deal” resulting in the Company’s loss of control
In case of “package deal”, stages as a whole are considered as one transaction resulting in loss of control in accounting treatment.
Before the Company loses control, the difference between the disposal consideration at each stage and the proportionate share of net
assets in the disposed subsidiary is recognized as other comprehensive income at the consolidated financial statements and
reclassified as profit or loss in the period when the Company loses control over such subsidiary.
(XV) Investment property
1. Investment property includes land use right of rent-out property and of property held for capital appreciation and buildings that
have been leased out.
2. The initial measurement of investment property is based on its cost, and subsequent measurement is made using the cost model,
the depreciation or amortization method is the same as that of fixed assets and intangible assets.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(XVI) Fixed assets
1. Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production or supply of goods or services, for rental to others, or for administrative
purposes, and expected to be used during more than one accounting year. Fixed assets are recognized if, and only if, it is probable
that future economic benefits associated with the assets will flow to the Company and the cost of the assets can be measured reliably.
2. Depreciation method of different categories of fixed assets
Estimated Annual
Useful life
Categories Depreciation method1 residual value depreciation
(years)
proportion (%) rate (%)
Buildings and structures straight-line method 15-35 3.00 2.77-6.47
Mechanical equipment straight-line method 10-15 3.00 6.47-9.70
Transport facilities straight-line method 6-8 3.00 12.13-16.17
Electronic equipment straight-line method 4-11 3.00 2.2-24.25
Office equipment and others straight-line method 4-11 3.00 2.2-24.25
(XVII) Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic benefits associated with the item will flow
to the Company, and the cost of the item can be measured reliably. Construction in progress is measured at the actual cost incurred to
reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches its designed usable conditions. When the
construction completion cost reaches final estimating and auditing of the construction in progress was not finished while it reaching
the designed usable conditions, it is transferred to fixed assets using estimated value first, and then adjusted accordingly when the
actual cost is settled, but the accumulated depreciation is not to be adjusted retrospectively.
(XVIII) Borrowing costs
1. Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization, it is capitalized and included in the costs of relevant assets; other borrowing costs are recognized as
expenses on the basis of the actual amount incurred, and are included in profit or loss.
2. Borrowing costs capitalization period
(1) The borrowing costs are not capitalized unless they following requirements are all met: 1) the asset disbursements have already
incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or production activities which are
necessary to prepare the asset for its intended use or sale have already started.
(2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is interrupted abnormally
and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs is suspended; the borrowing costs
incurred during such period are recognized as expenses, and are included in profit or loss, till the acquisition and construction or
production of the asset restarts.
(3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready for the intended use
or sale, the capitalization of the borrowing costs is ceased.
1
Methods include straight-line method, unit-of-production method, double-declining-balance method, sum-of-the-years-digits
method, as well as other methods.
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
3. Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization, the
to-be-capitalized amount of interests is determined in light of the actual interest expenses incurred (including amortization of
premium or discount based on effective interest method) of the special borrowings at the present period minus the income of interests
earned on the unused borrowings as a deposit in the bank or as a temporary investment; where a general borrowing is used for the
acquisition and construction or production of assets eligible for capitalization, the Company calculates and determines the
to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of
the accumulative asset disbursements minus the general borrowing by the capitalization rate of the general borrowing used.
(XIX) Intangible assets
1. Intangible asset includes land use right, patent right and non-patented technology etc. The initial measurement of intangible asset is
based its cost.
2. For intangible assets with finite useful lives, its amortization amount is amortized within its useful lives systematically and
reasonably, if it is unable to determine the expected realization pattern reliably, intangible assets are amortized by the straight-line
method.
Items Depreciation years
Software 3-10 years
Patent right and non-patent right 5-10 years
Land use right 40-50 years
3. Expenditures on the research phase of an internal project are recognized as profit or loss when it is incurred. An intangible asset
arising from the development phase of an internal project is recognized if the Company can demonstrate all of the following: (1) the
technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) its intention to complete the
intangible asset and use or sell it; (3) how the intangible asset will generate probable future economic benefits. Among other things,
the Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to
be used internally, the usefulness of the intangible asset; (4) the availability of adequate technical, financial and other resources to
complete the development and to use or sell the intangible asset; and (5) its ability to measure reliably the expenditure attributable to
the intangible asset during its development.
(XX) Impairment of part of non-current assets
For non-current assets such as long-term equity investments, investment property at cost model, fixed assets, construction in progress,
intangible assets with finite useful life, etc., if at the balance sheet date there is indication of impairment, the recoverable amount is
estimated. For goodwill recognized in business combination and intangible assets with indefinite useful life, no matter whether there
is indication of impairment, impairment test is performed annually. Impairment test on goodwill is performed on related group of
assets or a portfolio of groups of assets.
When the measurement result indicates that the recoverable amount of such non-current assets is lower than their carrying amount,
the carrying amount is reduced to the recoverable amount, and the difference is recognized as assets impairment loss through profit
or loss, and provision for assets impairment loss is made accordingly.
(XXI) Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year (excluding one year).
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
They are recorded with actual cost, and evenly amortized within its beneficiary period or stipulated period. If items of long-term
prepayments fail to be beneficial to the following accounting periods, residual values of such items are included in profit or loss.
(XXII) Employee benefits
1. Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-term
employee benefits.
2. Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, short-term employee benefits actually
incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
3. Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution payable to a defined
contribution plan as a liability, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
1) In accordance with the projected unit credit method, using unbiased and mutually compatible actuarial assumptions to estimate
related demographic variables and financial variables, measure the obligations under the defined benefit plan, and determine the
periods to which the obligations are attributed. The Company discounts obligations under the defined benefit plan using the discount
rate to determine the present value of the defined benefit plan obligations and the current service cost;
2) When a defined benefit plan has assets, the Company recognizes the deficit or surplus by deducting the present value of the
defined benefit plan obligation from the fair value of defined benefit plan assets as a net defined benefit plan liability or net defined
benefit plan asset. When a defined benefit plan has a surplus, the Company measures the net defined benefit plan asset at the lower of
the surplus in the defined benefit plan and the asset ceiling;
3) At the end of reporting period, the Company recognizes the following components of employee benefits cost arising from defined
benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c. Changes as a result of
remeasurement of the net defined benefit liability (asset). Item a and item b are recognized in profit or loss or the cost of a relevant
asset. Item c is recognized in other comprehensive income and is not to be reclassified subsequently to profit or loss. However, the
Company may transfer those amounts recognized in other comprehensive income within equity.
4. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination benefits, with a
corresponding charge to profit or loss at the earlier of the following dates: a. when the Company cannot unilaterally withdraw the
offer of termination benefits because of an employment termination plan or a curtailment proposal; or b. when the Company
recognizes cost or expenses related to a restructuring that involves the payment of termination benefits.
5. Other long-term employee benefits
When other long-term employee benefits provided by the Company to the employees satisfied the conditions for classifying as a
defined contribution plan, those benefits are accounted for in accordance with the requirements relating to defined contribution plan.
The Company recognizes and measures the net liability or net asset of other long-term employee benefits in accordance with the
requirements relation to defined benefit plan. At the end of the reporting period, the Company recognizes the components of cost of
employee benefits arising from other long-term employee benefits as the followings: a. service cost; b. net interest on the net liability
or net assets of other long-term employee benefits; and c. changes as a result of remeasurement of the net liability or net assets of
other long-term employee benefits. As a practical expedient, the net total of the aforesaid amounts are recognized in profit or loss or
74
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
included in the cost of a relevant asset.
(XXIII) Provisions
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as providing guarantee for other
parties, litigation, products quality guarantee, onerous contract, etc., may cause the outflow of the economic benefit and such
obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling the present obligations, and
its carrying amount is reviewed at the balance sheet date.
(XXIV) Revenue
1. Revenue recognition principles
(1) Sale of goods
Revenue from sale of goods is recognized if, and only if, the following conditions are all satisfied: a) significant risks and rewards of
ownership of the goods is transferred to the buyer; b) the Company retains neither continuing managerial involvement of ownership
nor effective control over the goods sold; c) the amount of revenue can be measured reliably; d) it is probable that the economic
benefits of the transaction will flow to the Company; and e) the costs of the transaction incurred and to be incurred can be measured
reliably.
(2) Rendering of services
When the outcome of the transaction can be estimated reliably (the amount of revenue can be measured reliably, it is probable that
the economic benefits will flow to the Company, the percentage of completion of the transaction can be determined reliably, and the
costs of the transaction incurred and to be incurred can be measured reliably), revenue from rendering of services is recognized using
the percentage of completion method, and the stage of completion is determined at the proportion of service rendered to the total
service. When the outcome of the transaction cannot be estimated reliably at the balance sheet date, revenue is recognized based on
the amount of the costs incurred and the costs incurred are charged off at the same amount when the costs incurred are expected to be
recoverable; and no revenue is recognized and the costs incurred are charged off as an expense of the period when the costs incurred
are not expected to be recovered.
(3) Revenue arising from use by others of assets
Revenue arising from use by others of assets is recognized if, and only if, it is probable that economic benefits associated with the
transaction will flow to the Company and the amount of the revenue can be measured reliably. Interest income is recognized based on
the length of time for which the Company’s cash is used by others and the effective interest rate; and royalties are recognized
according to the period and method of charging as specified in relevant contract or agreement.
2. Revenue recognition method adopted by the Company
The Company’s main product is the telecommunication product. Revenue from domestic sales is recognized if, and only if, the
following conditions are all met: the Company has delivered goods to the purchaser based on contractual agreements; sales revenue
is determined; goods payment has been collected or the Company has obtained receipts invoices and it is probable that economic
benefits associated with the transaction will flow to the Company; and the costs of the transaction incurred and to be incurred can be
measured reliably.
(XXV) Government grants
1. Government grants related to assets
Government grants related to assets are government grants, with which the Company purchase, construct or otherwise acquire
non-current assets. They are recognized as deferred income, and amortized on a straight-line method over the useful lives of the
75
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
relevant assets, and included in profit or loss. However, those measured at notional amount is directly included into profit or loss.
2. Government grants related to income
Government grants related to income are government grants other than those related to assets. Government grants related to income if
used for compensating the related future expenses or losses of the Company are recognized as deferred income and are included in
profit or loss during the period when the relevant expenses are recognized; if used for compensating the related expenses or losses
incurred to the Company are directly included in profit or loss.
(XXVI) Leases
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line method over the lease term.
Initial expenses are recognized directly into profit or loss. Contingent rents are charged as profit or loss in the periods in which they
are incurred.
When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over the lease term. Initial
expenses, other than those with material amount and eligible for capitalization which are recognized as profit or loss by installments,
are recognized directly as profit or loss. Contingent rents are charged into profit or loss in the periods in which they are incurred.
IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
The taxable revenue from sales of goods or rendering 17%
Value-added tax (VAT)
of services
Business tax The taxable business turnover 3%-5%
Urban maintenance and Turnover tax payable 7%
construction tax
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Enterprise income tax Taxable income 15%-25%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
Nanjing Putian Intelligent Building Ltd. 15%
Nanjing Putian Changle Telecommunications Equipment Co., Ltd. 15%
Nanjing Putian Datang Information Electronic Co., Ltd. 15%
Nanjing Putian Network Company Ltd. 15%
Putian Telecommunications (H.K.) Co., Ltd. 16.5%
Taxpayers other than the above-mentioned 25%
(II) Tax preferential policies
The subsidiaries, Nanjing Putian Telege Intelligent Building Co., Ltd., Nanjing Putian Changle Telecommunications Equipment Co.,
Ltd., Nanjing Putian Network Company Ltd. and Nanjing Putian Datang Information Electronic Co., Ltd. as high-tech enterprises,
pay the enterprise income tax at a reduced rate of 15 %.
Putian Telecommunications (Hong Kong) Co., Ltd. was established in Hong Kong on 1 December 2000, and is subject to enterprises
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
income tax at rate of 16.5%, according to relevant rules in Hong Kong.
The subsidiary, Nanjing Telecommunication Equipment Factory- the Seven Branch, is a social welfare enterprise. Therefore, it is in
accordance with the provisions of GSF (2007) No. 067 and enjoys the preferential tax policy of value-added tax levied immediately
returned and the disabled people’s wage deduction.
The subsidiary, Nanjing South Telecommunications Company Limited, Nanjing Putian Datang Information Electronic Co., Ltd.,
Nanjing Putian Network Company Ltd. and Nanjing Putian Telecommunication Technology Company Ltd. are software enterprises
and enjoy the preferential tax policy of value-added tax levied immediately returned with the provisions of CS(2011) No. 100.
V. Notes to items of consolidated financial statements
(I) Notes to items of the consolidated balance sheet
1. Cash and bank balances
(1) Details
Items Closing balance Opening balance
Cash on hand 10,545.61 18,655.93
Cash in bank 291,572,835.24 339,354,284.01
Other cash and bank balances 10,192,722.44 55,213,707.82
Total 301,776,103.29 394,586,647.76
(2) Other remarks
Other cash and bank balances are including the acceptance deposit and the letter of guarantee deposit. The acceptance deposit
amounts to 7,792,419.90 yuan and the letter of guarantee deposit amounts to 2,400,302.54 yuan.
2. Notes receivable
(1) Details
Closing balance Opening balance
Items Provision
Provision for Carrying
Book balance for bad Carrying amount Book balance
bad debts amount
debts
Bank
16,901,699.33 16,901,699.33 13,645,568.43 13,645,568.43
acceptance
Trade
7,111,953.94 7,111,953.94 20,730,072.94 20,730,072.94
acceptance
Total 24,013,653.27 24,013,653.27 34,375,641.37 34,375,641.37
(2) Endorsed or discounted but undue notes at the balance sheet date
Closing balance not yet
Items Closing balance derecognized
derecognized
Bank acceptance 23,862,541.62
Trade acceptance 9,641,597.13
Subtotal 33,504,138.75
3. Accounts receivable
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(1) Details
1) Details of different categories of accounts receivable
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
Receivables of individually
significant amount and with
provision made on an
individual basis
Receivables with provision
made on a collective basis
1,055,615,972.59 99.17 18,404,574.56 1.74 1,037,211,398.03
using portfolios with
similar credit risk features
Portfolio 1
Portfolio 2 1,055,615,972.59 99.17 18,404,574.56 1.74 1,037,211,398.03
Receivable of individually 8,834,318.61 0.83 8,834,318.61 100 -
insignificant amount but
with provision made on an
individual basis
Total 1,064,450,291.20 100.00 27,238,893.17 2.56 1,037,211,398.03
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
Receivables of individually
significant amount and with
provision made on an
individual basis
Receivables with provision
made on a collective basis
787,469,667.43 98.89 16,660,810.58 2.12 770,808,856.85
using portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 787,469,667.43 98.89 16,660,810.58 2.12 770,808,856.85
Receivable of individually
insignificant amount but with
8,835,895.48 1.11 8,835,895.48 100.00
provision made on an
individual basis
Total 796,305,562.91 100.00 25,496,706.06 3.20 770,808,856.85
2) In portfolios, accounts receivable with provision made on a collective basis with age analysis method
Closing balance
Ages
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 911,426,092.51
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
1-2 years 93,884,218.46
2-3 years 17,181,667.74 1,718,166.77 10
3-4 years 20,161,143.70 6,048,343.11 30
4-5 years 3,198,355.07 1,279,342.03 40
5-6 years 2,028,862.31 1,623,089.85 80
Over 6 years 7,735,632.80 7,735,632.80 100
Subtotal 1,055,615,972.59 18,404,574.56 1.74
(2) Provisions made, collected or reversed in current period
Provision for bad debts made in current period totaled 1,742,187.11 yuan, and collected or reversed in current period totaled 0 yuan.
(3) Details of the top 5 debtors with largest balances
Proportion to the
total balance of Provision for bad
Debtors Book balance
accounts receivable debts
(%)
China Telecom Co., Ltd. Jiangsu Branch 135,258,031.91 12.71
China Netcom 38,816,120.11 3.65
China Netcom. Hebei Branch 21,072,951.33 1.98
Agricultural Bank of China 20,630,202.11 1.94
Beijing Transtrue Technology Inc. 19,536,024.20 1.84
Subtotal 235,313,329.66 22.12
4. Advances paid
(1) Age analysis
1) Details of ages
Closing balance
Ages Provision for bad
Book balance Proportion (%) Carrying amount
debts
Within 1 year 27,505,106.42 61.55 27,505,106.42
1-2 years 9,326,916.85 20.87 9,326,916.85
2-3 years 1,516,983.06 3.39 1,516,983.06
Over 3 years 6,340,568.94 14.19 6,340,568.94
Total 44,689,575.27 100.00 44,689,575.27
(Continued)
Opening balance
Ages Provision for bad
Book balance Proportion (%) Carrying amount
debts
Within 1 year 20,249,817.55 64.02 20,249,817.55
1-2 years 5,700,897.26 18.02 5,700,897.26
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Opening balance
Ages Provision for bad
Book balance Proportion (%) Carrying amount
debts
2-3 years 1,835,834.69 5.80 1,835,834.69
Over 3 years 3,844,054.80 12.15 3,844,054.80
Total 31,630,604.30 100.00 31,630,604.30
2) Reasons for unsettlement on advances paid with age over one year and significant amount
Debtors Closing balance Reasons for unsettlement
Jiangsu Wujin Construction Engineering Group Co.,
4,000,000.00 The contract is still executing.
Ltd.
Flextronics (Changzhou) Ltd. 870,000.00 The settlement is not complete.
Beijing Hongbo Tengda science and Technology
881,505.00 The settlement is not complete.
Development Co., Ltd.
Gansu Ruitong Network Technology Co., Ltd. 500,000.00 The settlement is not complete.
Subtotal 6,251,505.00
(2) Details of the top 5 debtors with largest balances
Proportion to the
Debtors Book balance total balance of
advances paid (%)
Jiangsu Wujin Construction Engineering Group Co., Ltd. 4,000,000.00 8.95
Nanjing Dingnuo Intelligent Technology co., LTD. 3,768,366.15 8.43
Honeywell Security (China) co., LTD. Shanghai branch 1,851,484.46 4.14
Nanjing Pengji Cargo Stowage Ministry 1,173,325.65 2.63
Nanjing Ruiyi Technology co., LTD. 1,111,612.65 2.49
Subtotal 11,904,788.91 26.64
5. Dividend receivable
Items Closing balance Opening balance
Nanjing Prachanda Live Optical Network Co., Ltd. 1,000,000.00
Total 1,000,000.00
6. Other receivables
(1) Details
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Receivables of
individually significant
amount and with provision 28,912,122.71 39.25 28,912,122.71 100.00
made on an individual
basis
Receivables with
provision made on a
collective basis using 44,741,331.46 60.75 11,934,635.12 26.67 32,806,696.34
portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 44,741,331.46 60.75 11,934,635.12 26.67 32,806,696.34
Receivable of individually
insignificant amount but
with provision made on an
individual basis
Total 73,653,454.17 100.00 40,846,757.83 55.46 32,806,696.34
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
Receivables of
individually significant
amount and with provision 28,912,122.71 38.83 28,912,122.71 100.00
made on an individual
basis
Receivables with
provision made on a
collective basis using 45,547,277.77 61.17 13,154,484.54 28.88 32,392,793.23
portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 45,547,277.77 61.17 13,154,484.54 28.88 32,392,793.23
Receivable of individually
insignificant amount but
with provision made on an
individual basis
Total 74,459,400.48 100.00 42,066,607.25 56.50 32,392,793.23
2) Other receivables of individually significant amount and with provision made on an individual basis
Provision for bad Provision Reasons for
Debtors Book balance
debts proportion (%) provision made
Beijing Picom Aging longer
Telecommunications 28,912,122.71 28,912,122.71 100.00 cannot be recalled
Equipment co., LTD.
Subtotal 28,912,122.71 28,912,122.71 100.00
3) In portfolios, other receivables with provision made on a collective basis with age analysis method
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Closing balance
Ages
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 19,203,501.34
1-2 years 7,297,955.47
2-3 years 3,263,594.93 326,359.49 10
3-4 years 3,121,602.19 936,480.66 30
4-5 years 1,169,550.18 467,820.07 40
5-6 years 2,405,762.26 1,924,609.81 80
Over 6 years 8,279,365.09 8,279,365.09 100
Subtotal 44,741,331.46 11,934,635.12 26.67
(2) Provisions made, collected or reversed in current period
Provisions for bad debts made in current period totaled 380,150.58 yuan, and collected or reversed in current period totaled
1,600,000.00 yuan.
(3) Other receivables categorized by nature
Nature of receivables Closing balance Opening balance
Fund of disbursement for travel expenses 10,340,117.31 3,390,197.18
Deposit as security 15,730,018.57 10,523,324.58
Temporary advance payment receivable 45,816,126.72 58,519,421.71
Others 1,767,191.58 2,026,457.01
Total 73,653,454.17 74,459,400.48
(4) Details of the top 5 debtors with largest balances
Proportion to the
Nature of total balance of Provision for bad
Debtors Book balance Age
receivables other receivables debts
(%)
Beijing Picom Over 6
Telecommunications Business
28,912,122.71 39.25 28,912,122.71
section years
Equipment Ltd.
China Mobile
Communications
Cash deposit 3,150,000.00 2-3 years 4.28 15,000.00
Corporation Jiangsu
Branch
China Putian
Information Industry Cash deposit 1,380,000.00 1-2 years 1.81
Co., Ltd.
Temporary
Shuntian Pay Import advance Within 1
926,075.53 1.26
VAT payment year
receivable
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Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Proportion to the
Nature of total balance of Provision for bad
Debtors Book balance Age
receivables other receivables debts
(%)
China Netcom. Over 6
Liaoning Branch Cash deposit 730,000.00 0.99 600,000.00
years
Total 35,048,198.24 47.59 29,527,122.71
7. Inventories
(1) Details
Closing balance
Items Provision for
Book balance Carrying amount
write-down
Raw materials 43,385,513.85 11,314,555.77 32,070,958.08
Work in process 8,680,186.34 8,680,186.34
Goods on hand 384,518,592.24 72,734.37 384,445,857.87
Total
436,584,292.43 11,387,290.14 425,197,002.29
(Continued)
Opening balance
Items
Provision for
Book balance Carrying amount
write-down
Raw materials 34,249,423.11 2,439,972.73 31,809,450.38
Work in process 17,844,362.54 17,844,362.54
Goods on hand 414,325,369.42 8,947,317.41 405,378,052.01
Total
466,419,155.07 11,387,290.14 455,031,864.93
(2) Provision for inventory write-down
1) Details
Increase Decrease
Items Opening balance Reversal or Closing balance
Provision Others Others
written-off
Raw materials 2,439,972.73 2,439,972.73
Goods on hand 8,947,317.41 8,947,317.41
Subtotal
11,387,290.14 11,387,290.14
2) Determination basis of net realizable value and reasons for the reversal or written-off of provision for inventory write-down
83
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
The detailed basis of net realizable value refers to the Notes XII of financial statements.
8. Other current assets
Items Closing balance Opening balance
Input tax to be deducted 9,391,128.50 9,577,770.69
Total 9,391,128.50 9,577,770.69
9. Available-for-sale financial assets
(1) Details
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Available-for-s
ale equity
instrument
Including: at
2,596,863.00 1,854,910.00 741,953.00 2,596,863.00 1,854,910.00 741,953.00
cost
Total 2,596,863.00 1,854,910.00 741,953.00 2,596,863.00 1,854,910.00 741,953.00
(2) Available-for-sale financial assets at cost
Book balance
Investees
Opening balance Increase Decrease Closing balance
Nanjing Yuhua Galvanization
420,915.00 420,915.00
Factory
Hangzhou Hongyan Electric
321,038.00 321,038.00
Appliance Co., Ltd.
Beijing Picom
Telecommunications 1,854,910.00 1,854,910.00
Equipment Ltd.
Subtotal 2,596,863.00 2,596,863.00
(Continued)
Provision for impairment Cash
Holding
Investees dividend in
proportion in
Opening balance Increase Decrease Closing balance investees (%) current
period
Nanjing Yuhua
Galvanization 10.00
Factory
Hangzhou Hongyan
Electric Appliance Co., 2.26
Ltd.
Beijing Picom
Telecommunications 1,854,910.00 1,854,910.00 51.00
Equipment Ltd.
Subtotal 1,854,910.00 1,854,910.00
10. Long-term equity investments
84
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(1) Categories
Closing balance Opening balance
Provi- Provisi-
Items sion for on for
Book balance Carrying amount Book balance Carrying amount
impair- impair-
ment ment
Investments in
172,564,269.93 172,564,269.93 172,156,300.81 172,156,300.81
associates
Investments in
14,016,818.39 14,016,818.39 12,776,624.47 12,776,624.47
joint ventures
Total 186,581,088.32 186,581,088.32 184,932,925.28 184,932,925.28
(2) Details
Increase/decrease
Adjustment in
Investees Opening balance Investment income
Investments Investments other
recognized under
increased decreased comprehensive
equity method
income
Joint ventures
Nanjing Prachanda
Live Optical Network 12,776,624.47 1,240,193.92
Co., Ltd.
Subtotal 12,776,624.47 1,240,193.92
Associates
Nanjing Putian
Telege Cable 2,811,932.71 2,709.61
Co., Ltd.
Putian High
Technology 169,344,368.10 405,259.51
Industry Co., Ltd.
Subtotal 172,156,300.81 407,969.12
Total 184,932,925.28 1,648,163.04
(Continued)
Increase/decrease
Closing
Cash balance of
Investees Changes Closing balance
dividend/profit Provision for provision for
in other Others
declared for impairment impairment
equity
distribution
Joint ventures
Nanjing Prachanda
Live Optical 14,016,818.39
Network Co., Ltd.
Subtotal 14,016,818.39
Associates
Nanjing Putian
2,814,642.32
Telege Cable
85
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Co., Ltd.
Putian High
Technology 169,749,627.61
Industry Co., Ltd.
Subtotal 172,564,269.93
Total 186,581,088.32
11. Investment property
Items Buildings and structures Land use right Total
Cost
Opening balance 43,969,211.75 3,642,147.87 47,611,359.62
Increase
1) Acquisition
2)Business combination
Decrease
Closing balance 43,969,211.75 3,642,147.87 47,611,359.62
Accumulated depreciation and
amortization
Opening balance 12,012,802.65 1,404,691.95 13,417,494.60
Increase 511,911.06 59,980.32 571,891.38
1) Accrual 453,511.02 59,980.32 513,491.34
2) Acquisition
3)Business combination 58,400.04 58,400.04
Decrease
Closing balance 12,524,713.71 1,464,672.27 13,989,385.98
Provision for impairment
Opening balance 1,842,418.00 1,842,418.00
Increase
Decrease
Closing balance 1,842,418.00 1,842,418.00
Carrying amount
Closing balance 29,602,080.04 2,177,475.60 31,779,555.64
Opening balance 30,113,991.10 2,237,455.92 32,351,447.02
12. Fixed assets
(1) Details
86
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Buildings and Machinery
Items Transport facilities
structures equipment
Cost
Opening balance 101,163,240.29 80,203,305.95 14,928,622.06
Increase 71,925.97
1) Acquisition 71,925.97
2) Business combination
3) Transferred in from
construction in progress
Decrease 32,627.60
1) Disposal/scrap 25,790.00
2) Transferred to investment
6,837.60
property
Closing balance 101,163,240.29 80,242,604.32 14,928,622.06
Accumulated depreciation
Opening balance 38,966,003.77 66,614,341.95 11,454,088.15
Increase 1,747,720.18 1,380,047.29 589,339.37
1) Accrual 1,488,300.12 1,380,047.29 589,339.37
2) Business combination 259,420.06
Decrease 239,232.78 24,500.50
1) Disposal/scrap 24,500.50
2) Transferred to investment
239,232.78
property
Closing balance 40,474,491.17 67,969,888.74 12,043,427.52
Provision for impairment
Opening balance 539,124.00 573,461.78
Increase
Decrease
Closing balance 539,124.00 573,461.78
Carrying amount
Closing balance 60,149,625.12 11,699,253.80 2,885,194.54
Opening balance 61,658,112.52 13,015,502.22 3,474,533.91
(Continued)
Electronic
Items Office facilities Other equipment Total
equipment
Cost
Opening balance 6,968,825.83 11,047,648.12 37,616,344.39 251,927,986.64
Increase 8,443.59 75,889.61 605,315.37 761,574.54
87
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
1) Acquisition 8,443.59 75,889.61 605,315.37 761,574.54
2) Business combination
3) Other transfer in
Decrease 243,125.04 1,033,970.89 1,309,723.53
1) Disposal/scrap 243,125.04 1,033,970.89 1,302,885.93
2) Others 6,837.60
Closing balance 6,977,269.42 10,880,412.69 37,187,688.87 251,379,837.65
Accumulated depreciation
Opening balance 5,807,809.45 8,925,680.67 31,875,226.17 163,643,150.16
Increase 140,565.87 343,810.60 213,884.49 4,415,367.80
1) Accrual 140,565.87 343,810.60 213,884.49 4,155,947.74
2) Business combination 259,420.06
Decrease 234,311.16 449,345.40 947,389.84
1) Disposal/scrap 218,812.53 449,345.40 692,658.43
2) Other transfer out 15,498.63 254,731.41
Closing balance 5,948,375.32 9,035,180.11 31,639,765.26 167,111,128.12
Provision for impairment
Opening balance 847,107.16 92,064.43 307,895.29 2,359,652.66
Increase
Decrease
Closing balance 847,107.16 92,064.43 307,895.29 2,359,652.66
Carrying amount
Closing balance 181,786.94 1,753,168.15 5,240,028.32 81,909,056.87
Opening balance 313,909.22 2,029,903.02 5,433,222.93 85,925,183.82
(2) Fixed assets temporarily idle
Items Accumulated Provision for Carrying Note
Cost
depreciation impairment amount
Special equipment 2,157,790.39 1,238,749.69 919,040.70
Other equipment 6,850.00 6,011.26 838.74
Subtotal 2,164,640.39 1,244,760.95 919,879.44
(3) Fixed assets with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
Production houses 7,741,495.91 No certification of land use right
Structures 1,938,289.69 No certification of land use right
88
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Non-production houses 923,651.00 No certification of land use right
Subtotal 10,603,436.60
13. Construction in progress
(1) Details
Closing balance Opening balance
Projects
Book balance Carrying amount Book balance Carrying amount
Nanjing Putian Yuhua
21,380,892.29 21,380,892.29 19,210,716.29 19,210,716.29
Venture park
Cable production line 614,290.58 614,290.58 614,290.58 614,290.58
Air-condition cloth
58,800.00 58,800.00 58,800.00 58,800.00
production line
Intelligent Building the
195,817.21 195,817.21 195,817.21 195,817.21
East Gate
Total 22,249,800.08 22,249,800.08 20,079,624.08 20,079,624.08
(2) Changes in significant projects
1) Details
Transferred to Other
Projects Budgets Opening balance Increase Closing balance
fixed assets decrease
Nanjing Putian
Yuhua Venture 56,835,000.00 19,210,716.29 2,170,176.00 21,380,892.29
park
Cable
700,000.00 614,290.58 614,290.58
production line
Employee
986,353.00 58,800.00
dormitory
Intelligent
Building the 228,000.00 195,817.21 195,817.21
East Gate
Subtotal 58,749,353.00 20,020,824.08 2,170,176.00 22,249,800.08
(Continued)
Amount of
Accumulated Completion Accumulated Annual
borrowing cost
investment to percentage amount of capitali-
Projects capitalizatio-n Fund source
borrowing cost zation
budget（%） (%) in current
capitalization rate (%)
period
Nanjing 37.62 37.62
Putian
Self-owned
Yuhua
Venture park
Cable 87.76 87.76
production Self-owned
line
Employee
Self-owned
dormitory
Intelligent 85.88 85.88 Self-owned
Building the
89
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Amount of
Completion Accumulated Annual
Accumulated borrowing cost
percentage amount of capitali-
Projects investment to capitalizatio-n Fund source
borrowing cost zation
budget（%） (%) in current
capitalization rate (%)
period
East Gate
Subtotal
14. Intangible assets
Non-patent
Items Software Land use right Patent right Total
right
Cost
Opening balance 9,295,281.03 29,924,994.74 607,500.00 4,560,000.00 44,387,775.77
Increase 33,786.41 33,786.41
1) Acquisition 33,786.41 33,786.41
2) Business
combination
Decrease
Closing balance 9,329,067.44 29,924,994.74 607,500.00 4,560,000.00 44,421,562.18
Accumulated
amortization
Opening balance 7,138,899.47 3,931,072.86 607,500.00 4,560,000.00 16,237,472.33
Increase 454,625.95 243,453.40 698,079.35
1) Accrual 454,625.95 243,453.40 698,079.35
2) Business
combination
Decrease
Closing balance 7,593,525.42 4,174,526.26 607,500.00 4,560,000.00 16,935,551.68
Carrying amount
Closing balance 1,735,542.03 25,750,468.48 27,486,010.50
Opening balance 2,156,381.56 25,993,921.88 28,150,303.44
15. Long-term prepayments
Items Opening balance Increase Amortization Other decreases Closing balance
Canteen
724,283.99 36,828.00 687,455.99
renovation
Office
550,308.47 62,299.02 488,009.45
renovation
Site
460,910.00 15,354.00 445,556.00
renovation
Total 1,274,592.46 460,910.00 114,481.02 1,621,021.44
90
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
16. Short-term borrowings
Items Closing balance Opening balance
Mortgage borrowings 77,000,000.00 79,000,000.00
Secured borrowings 394,000,000.00 324,000,000.00
Total 471,000,000.00 403,000,000.00
17. Notes payable
Items Closing balance Opening balance
Trade acceptance 46,588,063.00 16,816,997.65
Bank acceptance 10,050,000.00 100,000,000.00
Total 56,638,063.00 116,816,997.65
18. Accounts payable
(1) Details
Items Closing balance Opening balance
Material purchase fund 1,089,786,352.11 920,283,825.95
Project fund 540,500.35 275,630.35
Total 1,090,326,852.46 920,559,456.30
(2) Significant accounts payable with age over one year
Items Closing balance Reasons for unsettlement
Nanjing Prachanda Live Optical Network Co.,
44,664,379.74 The settlement is not complete
Ltd.
Nanjing Putian Information Industry Co., Ltd. 19,944,960.40 The settlement is not complete
Huaian Guangyuan Installation Engineering
4,151,083.00 The settlement is not complete
co., LTD.
Nanjing Yuanwang Cargo Stowage Ministry 2,225,920.00 The settlement is not complete
Xian Huasheng Communication Co., Ltd. 1,911,004.00 The contract is still executing.
Nanjing Apps Electric Control Equipment Co.
1,417,340.85 The payment is based on schedule
Ltd.
Jiangsu Youke Communication Equipment
2,545,918.44 The settlement is not complete
Co. Ltd.
Nanjing Yishui Intelligent Co., Ltd. 1,164,611.13 The settlement is not complete
Nanjing Huatong Electrical Appliance Factory 1,109,520.10 The payment is based on schedule
Subtotal 79,134,737.66
91
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
19. Advances received
(1) Details
Items Closing balance Opening balance
Payment for goods 69,907,182.20 84,724,425.95
Total 69,907,182.20 84,724,425.95
(2) Significant advances received with age over one year
Items Closing balance Reasons for unsettlement
China Putian Information Industry Co.,
8,158,434.00 The contract is still executing.
Ltd.
China Railway Electrification Bureau
2,744,262.52 The contract is still executing.
Group co., LTD. Urban Railway co., LTD.
Nanjing Subway Construction co., LTD. 1,255,375.30 The contract is still executing
China Railway Electrification Bureau
5,572,491.31 The contract is still executing
Group co., LTD.
Subtotal 17,730,563.13
20. Employee benefits payable
(1) Details
Items Opening balance Increase Decrease Closing balance
Short-term employee benefits 18,693,324.81 107,842,896.57 108,358,696.61 18,177,524.77
Post-employment benefits -
12,623,838.10 12,623,838.10
defined benefit plan
Termination benefits 95,000.00 95,000.00
Total 18,693,324.81 120,561,734.67 121,077,534.71 18,177,524.77
(2) Details of short-term employee benefits
Items Opening balance Increase Decrease Closing balance
Wage, bonus, allowance and
11,417,381.49 86,475,051.31 87,243,251.22 10,649,181.58
subsidy
Employee welfare fund 7,905,798.09 7,592,690.78 313,107.31
Social insurance premium 6,650,901.53 6,650,901.53
Including: Medicare
6,143,526.23 6,143,526.23
premium
Occupational injuries
254,110.28 254,110.28
premium
Maternity premium 253,265.02 253,265.02
Housing accumulation funds 77,654.69 4,975,996.08 4,973,471.48 80,179.29
Trade union fund and
7,198,288.63 1,835,149.56 1,898,381.60 7,135,056.59
employee education fund
Subtotal 18,693,324.81 107,842,896.57 108,358,696.61 18,177,524.77
92
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(3) Details of defined benefit plan
Items Opening balance Increase Decrease Closing balance
Basic endowment insurance
10,791,881.93 10,791,881.93
premium
Unemployment insurance
1,016,769.84 1,016,769.84
premium
Company annuity payment 815,186.33 815,186.33
Subtotal 12,623,838.10 12,623,838.10
21. Taxes and rates payable
Items Closing balance Opening balance
VAT 5,132,059.38 4,359,048.21
Business tax 4,241.06 4,241.06
Enterprise income tax 4,311,926.53 4,776,137.86
Urban maintenance and construction tax 399,940.48 382,816.93
Housing property tax 106,199.90 104,371.54
Land use tax 81,755.69 81,755.52
Individual income tax 271,213.13 239,140.04
Education surcharge 212,793.80 230,611.20
Local education surcharge 93,413.25 40,189.39
Other tax 2,788.68 5,841.70
Total 10,616,331.90 10,224,153.45
22. Interest payable
Items Closing balance Opening balance
Short-term borrowings interest 661,594.44 691,830.29
Total 661,594.44 691,830.29
23. Dividend payable
(1) Details
Items Closing balance Opening balance
Dividend of ordinary shares 1,692,213.38 1,946,045.39
Total 1,692,213.38 1,946,045.39
(2) Significant dividend payable with age over one year
Items Closing balance Opening balance Reasons for being unpaid
93
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Ningbo Fengshien Plastic Co., Ltd. The shareholder’s signature is
253,832.01 253,832.01
incomplete.
Yuyao Guochang Electronic Co., The shareholder’s signature is
423,053.34 423,053.34
Ltd. incomplete.
Nanjing Yongxin Electrical
Appliance The shareholder’s signature is
253,832.01 253,832.01
incomplete.
Matching Co., Ltd.
Jingjiang Huasheng
Communication The shareholder’s signature is
84,610.67 84,610.67
incomplete.
Equipment Co., Ltd.
Jiangdu Yate Communications
Plastic The shareholder’s signature is
423,053.34 423,053.34
incomplete.
Products Co., Ltd.
Zhenjiang Shengtang Photoelectric
Device The shareholder’s signature is
253,832.01 253,832.01
incomplete.
Co., Ltd.
Subtotal 1,692,213.38 1,692,213.38
24. Other payables
Items Closing balance Opening balance
Deposits 6,256,233.01 3,742,703.59
Temporary receipts payable 7,298,425.95 20,135,992.26
Unsettled installation cost 28,282,452.48 29,443,834.85
Operating expense 9,153,465.80 3,964,370.78
Others 3,733,545.54 1,554,449.78
Total 54,724,122.78 58,841,351.26
25. Long-term payable
Items Closing balance Opening balance
Turnover fund 80,118.00 80,118.00
Total 80,118.00 80,118.00
26. Share capital
Movements
Items Opening balance Reserve Closing balance
Issue of new Bonus
transferred to Others Subtotal
shares shares
shares
Total shares 215,000,000.00 215,000,000.00
27. Capital reserve
Items Opening balance Increase Decrease Closing balance
Share/capital premium 139,592,332.04 139,592,332.04
94
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Other capital reserve 45,782,201.81 45,782,201.81
Total 185,374,533.85 185,374,533.85
28. Other comprehensive income (OCI)
Current period cumulative
Less: OCI
Current Attribut-
Items Opening balance carried
period Less: Attributable able to Closing balance
forward
cumulative income to parent non-con
transferred
before tax company -trolling
to profit or
income tax interest
loss
Items not to be
reclassified
subsequently to
profit or loss
Items to be
reclassified
-3,318,496.10 5,538.07 5,538.07 -3,312,958.03
subsequently to
profit or loss
Translation
difference of
-3,318,496.10 5,538.07 5,538.07 -3,312,958.03
financial statements
in foreign currencies
Total -3,318,496.10 5,538.07 5,538.07 -3,312,958.03
29. Surplus reserve
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserve 589,559.77 589,559.77
Total 589,559.77 589,559.77
30. Undistributed profit
Current period Preceding period
Items
cumulative comparative
Balance before adjustment at the end of preceding period -33,465,684.38 -14,489,140.50
Add: Increase due to adjustment (or less: decrease)
Opening balance after adjustment -33,465,684.38 -14,489,140.50
Add: Net profit attributable to owners of the parent -16,313,763.93 -18,976,543.88
company
Closing balance -50,079,448.31 -33,465,684.38
(II) Notes to items of the consolidated income statement
95
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
1. Operating revenue/cost
Current period cumulative Preceding period comparative
Items
Income Cost Income Cost
Revenue from main
878,590,045.39 725,201,712.87 1,155,060,034.97 987,142,781.80
operation
Revenue from other
41,701,286.22 34,004,127.03 17,963,615.28 21,099,753.99
operation
Total 920,291,331.61 759,205,839.90 1,173,023,650.25 1,008,242,535.7
2. Taxes and surcharge for operations
Items Current period cumulative Preceding period comparative
Business tax 254,625.83 216,902.57
Education surcharge 1,975,422.28 1,208,055.99
Urban maintenance and construction tax 2,765,591.19 1,683,088.56
Others 16,507.67 1,225.15
Total 5,012,146.97 3,109,272.27
3. Selling expenses
Items Current period cumulative Preceding period comparative
Salary 39,248,236.92 34,222,654.91
Business entertainment 10,618,202.54 11,817,721.08
Travel expenses 9,451,014.24 10,885,943.69
Transport fees and transport damages 11,472,331.11 7,570,739.93
Office expenses 5,138,769.98 8,169,483.64
Conference expenses 2,308,980.54 1,712,295.64
Sales service charge 872,547.69 1,496,427.73
Business publicity fees 1,297,983.91 1,398,593.21
Equipment maintain fees 171,140.46 1,431,989.41
Others 4,795,104.61 5,928,618.75
Total 85,374,312.00 84,634,467.99
4. Administrative expenses
Items Current period cumulative Preceding period comparative
Salary expenses 19,643,722.96 22,004,212.76
Technology development 33,396,132.51 24,184,207.17
Lease expense 3,967,930.25 3,817,176.87
Depreciation and amortization 2,172,123.28 2,003,275.22
96
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Items Current period cumulative Preceding period comparative
Office expenses 2,183,285.86 2,135,508.47
Traveling expense 978,854.83 1,704,246.73
Business entertainment 1,055,904.52 1,443,464.96
Consulting, intermediary, legal fees 1,835,569.94 1,748,970.43
Taxation 1,094,369.10 802,643.24
Others 2,479,274.45 4,450,822.14
Total 68,807,167.70 64,294,527.99
5. Financial expenses
Items Current period cumulative Preceding period comparative
Interest expenditures 13,711,472.66 17,583,995.66
Less: Interest income 2,636,199.96 1,829,898.72
Exchange loss -12,412.80 59,150.36
Less: Exchange gain 1,771.03 35.08
Bank charges 189,431.87 109,025.33
Total 11,250,520.74 15,922,237.55
6. Assets impairment loss
Items Current period cumulative Preceding period comparative
Bad debts 522,337.69 1,197,912.02
Total 522,337.69 1,197,912.02
7. Investment income
Items Current period cumulative Preceding period comparative
Investment income from long-term
equity investments under equity 1,648,163.04 227,042.96
method
Total 1,648,163.04 227,042.96
8. Non-operating revenue
(1) Details
Amount included in
Current period Preceding period
Items non-recurring profit or
cumulative comparative
loss
Gains on disposal of non-current
910.50 1,220.16 910.50
assets
Including: Gains on disposal of
910.50 1,220.16 910.50
fixed assets
97
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Gains on disposal of intangible
assets
Gains on debt restructuring 173.00 173.00
Government grants 2,862,726.34 1,458,478.28 2,862,726.34
Others 203,798.67 3,288,764.41 203,798.67
Total 3,067,608.51 4,748,462.85 3,067,608.51
(2) Government grants
Current period Preceding period
Items Related to assets/income
cumulative comparative
Refund of VAT 1,930,226.34 1,444,902.28 Related to income
Service outsourcing rewards Related to income
Enterprise Incentive payments 9,700.00 13,576.00 Related to income
Subsidy income 922,800.00 Related to income
A special fund to support small
Related to income
businesses
Subtotal 2,862,726.34 1,458,478.28
9. Non-operating expenditures
Current period Preceding period Amount included in
Items
cumulative comparative non-recurring profit or loss
Losses on disposal of non-current
44,708.03 105,658.79 44,708.03
assets
Including: Losses on disposal of
44,708.03 105,658.79 44,708.03
fixed assets
Losses on debt restructuring
External donation
Penalty expenditure 764.21 764.21
Others 31,808.15 307,414.94 31,808.15
Total 77,280.39 413,073.73 77,280.39
10. Income tax expenses
(1) Details
Items Current period cumulative Preceding period comparative
Current period income tax expenses 8,415,501.07 5,248,812.79
Deferred income tax expenses
Total 8,415,501.07 5,248,812.79
(2) Reconciliation of accounting profit to income tax expenses
Items Current period cumulative
98
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Profit before tax -5,242,502.22
Income tax expenses based on statutory tax rate -1,310,625.56
Effect of different tax rate applicable to subsidiaries -926,262.76
Effect of prior income tax reconciliation 2,870,479.35
Effect of non-taxable income
Effect of non-deductible costs, expenses and losses -51,794.11
Utilization of deductible losses not previously recognized
Effect of deducible temporary differences or deductible losses
7,833,704.14
not recognized
Income tax expenses 8,415,501.07
11. Other comprehensive income, net of income tax
Please refer to notes to other comprehensive income for details.
(III) Notes to items of the consolidated cash flow statement
1. Other cash receipts related to operating activities
Items Current period cumulative Preceding period comparative
Interest income 1,471,926.29 1,829,898.72
Temporary receipts and the recovering
27,456,434.10 53,956,029.20
of temporary payment
Others 3,072,089.85 755,771.18
Total 32,000,450.24 56,541,699.10
2. Other cash payments related to operating activities
Items Current period cumulative Preceding period comparative
Temporary payment and repayment of
49,328,570.09 14,262,612.34
temporary receipts
Out of pocket expense 60,813,681.55 89,377,474.09
Others 21,634.61 167,439.89
Total 110,163,886.25 103,807,526.32
3. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Current period Preceding period
Supplement information
cumulative comparative
(1) Reconciliation of net profit to cash flow from operating
activities:
Net profit -13,658,003.29 -5,063,684.07
99
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Current period Preceding period
Supplement information
cumulative comparative
Add: Provision for assets impairment loss 522,337.69 1,197,912.02
Depreciation of fixed assets, oil and gas assets, productive
5,045,659.21 5,653,114.69
biological assets
Amortization of intangible assets 698,079.35 1,057,210.80
Amortization of long-term prepayments 114,481.02
Loss on disposal of fixed assets, intangible assets and
19,485.02 104,438.63
other non-current assets (Less: gains)
Fixed assets retirement loss (Less: gains) 24,312.51
Losses on changes in fair value (Less: gains)
Financial expenses (Less: gains) 13,711,472.66 15,749,377.69
Investments losses (Less: gains) -1,648,163.04 -227,042.96
Decrease of deferred tax assets (Less: increase)
Increase of deferred tax liabilities (Less: decrease)
Decrease in inventories (Less: increase) 29,834,862.64 -27,316,513.66
Decrease in operating receivables (Less: increase) -261,072,346.04 -106,705,473.15
Increase of operating payables (Less: decrease) 90,530,367.69 59,035,877.22
Others
Net cash flow from operating activities -135,877,454.58 -56,514,782.79
(2) Significant investing and financing activities not related to
cash receipts and payments:
Conversion of debt into share capital
Convertible bonds due within one year
Fixed assets rented in under finance leases
(3) Net changes in cash and cash equivalents:
Cash at the end of the period 291,583,380.85 358,111,049.62
Less: Cash at the beginning of the period 375,372,939.94 402,037,725.25
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase of cash and cash equivalents -83,789,559.09 -43,926,675.63
(2) Cash and cash equivalents
100
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Items Closing balance Opening balance
1) Cash 291,583,380.85 358,111,049.62
Including: Cash on hand 10,545.61 60,174.45
Cash in bank on demand for payment 291,572,835.24 303,434,172.06
Other cash and bank balances on demand for
54,616,703.11
payment
Central bank deposit on demand for payment
Deposit in other banks
Loans to other banks
2) Cash equivalents
Including: Bond investments maturing within three months
3) Cash and cash equivalents at the end of the period 291,583,380.85 358,111,049.62
Including: Cash and cash equivalents of parent company or
10,192,722.44
subsidiaries with use restrictions
Remark: Cash and cash equivalents of parent company or subsidiaries with use restrictions belongs to the acceptance deposit and the
letter of guarantee deposit.
(IV) Others
1. Assets with title or use right restrictions
Items Closing carrying amount Reasons for restrictions
Cash and bank balances Acceptance deposit and letter of
10,192,722.44
guarantee deposit
Investment property 21,238,197.25 To provide guarantee for loans
Fixed assets 33,623,247.56 To provide guarantee for loans
Intangible assets 8,190,930.66 To provide guarantee for loans
Total 73,245,097.91
2. Monetary items in foreign currencies
Items Closing balance in Exchange rate RMB equivalent
foreign currencies
Cash and bank balances 10,907,948.48
Including: USD 1,484,521.72 6.1136 9,075,771.96
HKD 2,314,821.56 0.7886 1,825,468.29
EUR 657.70 6.8699 4,518.36
101
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
GBP 227.11 9.6422 2,189.87
Accounts receivable 4,737,191.37
Including: USD 774,861.19 6.1136 4,737,191.37
Accounts payable 3,543,875.64
Including: HKD 4,493,882.38 0.7886 3,543,875.64
VI. Equity in other entities
(I) Equity in significant subsidiaries
1. Composition of significant subsidiaries
(1) Basis information
Main Holding proportion (%)
Place of Acquisition
Subsidiaries operating Business nature
registration Direct Indirect method
place
Nanjing Southern
Telecommunications
Nanjing Nanjing Manufacture 97.00 1.24 found
Company
Limited
Nanjing Mennekes Electrics
Nanjing Nanjing Manufacture 75.00 found
Co., Ltd.
Nanjing Putian Intelligent
Nanjing Nanjing Manufacture 45.767 found
Building Ltd.
Nanjing Putian Changle
Telecommunications Nanjing Nanjing Manufacture 50.70 found
Equipment Co., Ltd.
Nanjing Putian Datang
Information Electronic Co., Nanjing Nanjing Manufacture 40.00 found
Ltd.
(2) Other remarks
1) Remarks on inconsistency between holding proportion owned and voting rights proportion owned in subsidiaries
The Company holds 40% of shares in Nanjing Putian Datang Information Electronic Co., Ltd. The company signed an agreement
with the shareholder of Putian Datang - Yan yaoming to exercise his 21% right to vote on behalf of him. The agreement is valid
during the period of the existence of Nanjing Putian Datang Information Electronic Co., Ltd. The company has 61% of voting right in
Nanjing Putian Datang Information Electronic Co., Ltd.
2) Basis for the control of an investee while holding its half or less than half voting rights, and the non-control of an investee while
holding its more than half voting rights
The Company holds 45.767% of voting rights in Nanjing Putian Intelligent Building Ltd., the proportion of the remaining voting
rights are held by other people which are dispersive. The company has over the half number of board of directors with the invested
party right and enjoys variable returns by taking part in the invested party’s related activity. The company has the power in the
invested party to influence the returned amount and controls it.
2. Significant not wholly-owned subsidiaries
(1) Details
102
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Profit or loss
Holding proportion of Dividend declared to Closing balance of
attributable to
Subsidiaries non-controlling non-controlling non-controlling
non-controlling
interest interest interest
interest
Nanjing South
Telecommunications Co., 1.76% 148,611.68 2,469,791.52
Ltd.
Nanjing Mennekes
25.00% 432,717.48 21,987,579.52
Electrics Co., Ltd.
Nanjing Putian
54.233% 3,076,255.09 49,962,367.85
Intelligent Building Ltd.
Nanjing Putian Changle
Telecommunications 49.30% 208,635.41 15,608,449.42
Equipment Co., Ltd.
Nanjing Putian Datang
Information Electronic 40.00% 651,520.75 15,650,085.46
Co., Ltd.
3. Main financial information of significant not wholly-owned subsidiaries
(1) Assets and liabilities
Closing balance
Subsidiaries Current Non-current Current Non-current
Total assets Total liabilities
assets assets liabilities liabilities
Nanjing South
Telecommuni
414,570,230.43 13,109,092.78 427,679,323.21 287,350,259.11 287,350,259.11
cations Co.,
Ltd.
Nanjing
Mennekes
102,949,154.93 36,554,861.01 139,504,015.94 51,553,697.88 51,553,697.88
Electrics Co.,
Ltd.
Nanjing
Putian
213,288,973.76 43,418,272.55 256,707,246.31 164,581,846.95 164,581,846.95
Intelligent
Building Ltd.
Nanjing
Putian
Changle
Telecommuni 115,283,664.69 716,322.90 115,999,987.59 84,339,846.77 84,339,846.77
cations
Equipment
Co., Ltd.
Nanjing
Putian Datang
Information 17,442,374.82 18,739,793.10 36,182,167.92 10,098,692.16 10,098,692.16
Electronic
Co., Ltd.
(Continued)
Opening balance
Subsidiaries Current Non-current Current Non-current
Total assets Total liabilities
assets assets liabilities liabilities
Nanjing 415,445,394.73 13,158,641.79 428,604,036.52 296,718,817.95 296,718,817.95
South
103
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Opening balance
Subsidiaries Current Non-current Current Non-current
Total assets Total liabilities
assets assets liabilities liabilities
Telecommuni
cations Co.,
Ltd.
Nanjing
Mennekes
90,560,105.88 37,650,384.06 128,210,489.94 41,991,041.79 41,991,041.79
Electrics Co.,
Ltd.
Nanjing
Putian
234,334,234.49 44,498,703.51 278,832,938.00 192,379,832.43 192,379,832.43
Intelligent
Building Ltd.
Nanjing
Putian
Changle
Telecommuni 128,720,398.00 762,801.43 129,483,199.43 98,246,254.17 98,246,254.17
cations
Equipment
Co., Ltd.
(2) Profit or loss and cash flows
Current period cumulative
Subsidiaries Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Nanjing South
Telecommunications 299,532,116.68 8,443,845.54 8,443,845.54 -57,455,983.28
Co., Ltd.
Nanjing Mennekes
54,737,783.42 1,730,869.91 1,730,869.91 2,848,496.15
Electrics Co., Ltd.
Nanjing Putian
143,733,662.79 5,672,293.79 5,672,293.79 -49,001,461.09
Intelligent Building Ltd.
Nanjing Putian Changle
Telecommunications 45,967,575.10 423,195.56 423,195.56 269,383.92
Equipment Co., Ltd.
Nanjing Putian Datang
Information Electronic 14,668,147.00 1,085,867.91 1,085,867.91 617,863.44
Co., Ltd.
(Continued)
Preceding period comparative
Subsidiaries Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Nanjing South
Telecommunications 314,142,472.94 7,276,936.75 7,276,936.75 -28,233,092.88
Co., Ltd.
Nanjing Mennekes
56,960,971.79 2,044,087.37 2,044,087.37 -11,374,308.36
Electrics Co., Ltd.
Nanjing Putian
123,079,198.33 5,123,504.36 5,123,504.36 -22,504,938.85
Intelligent Building Ltd.
104
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Preceding period comparative
Subsidiaries Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Nanjing Putian Changle
Telecommunications 63,938,484.44 1,673,851.16 1,673,851.16 -1,429,474.80
Equipment Co., Ltd.
Nanjing Putian Datang
Information Electronic 18,606,898.34 1,911,339.92 1,911,339.92 -4,401,766.31
Co., Ltd.
(II) Equity in joint venture or associates
1. Significant joint ventures or associates
Main Holding proportion (%)
Joint ventures or Place of Accounting
operating Business nature Direct Indirect
associates registration treatment
place
Nanjing Prachanda Optical
Live Optical Network Nanjing Nanjing communication 50.00 Equity method
Co., Ltd of production
Putian High Industrial park
Technology Nanjing Nanjing venue rental 49.64 Equity method
Industry Co., Ltd. management etc
2. Main financial information of significant joint ventures
Closing balance/current period Opening balance/last period
Items cumulative cumulative
Nanjing Prachanda Live Optical Network Co., Ltd.
Current assets 57,827,806.87 47,887,390.76
Including: Cash and cash
1,429,575.56 2,120,617.06
equivalents
Non-current assets 1,694,124.33 2,149,009.45
Total assets 59,521,931.20 50,036,400.21
Current liabilities 31,488,294.43 24,483,151.27
Non-current liabilities
Total liabilities 31,488,294.43 24,483,151.27
Non-controlling interest
Equity attributable to owners of
28,033,636.77 25,553,248.94
parent company
Proportionate share in net assets 14,016,818.39 12,776,624.47
Adjustments
Goodwill
Unrealized profit in internal
trading
Others
105
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Closing balance/current period Opening balance/last period
Items cumulative cumulative
Nanjing Prachanda Live Optical Network Co., Ltd.
Carrying amount of investments in
14,016,818.39 12,776,624.47
joint ventures
Fair value of equity investments in
joint ventures in association with
quoted price
Operating revenue
23,632,373.32 12,863,084.55
Financial expenses
-863,208.62 -246,194.08
Income tax expenses 193,485.69
Net profit
2,480,387.83 -1,978,217.83
Net profit of discontinued operations
Other comprehensive income
Total comprehensive income
2,480,387.83 -1,978,217.83
Dividend from joint ventures
received in current period
3. Main financial information of significant associates
Closing balance/current period Opening balance/last period
Items cumulative cumulative
Putian High Technology Industry Co., Ltd.
Current assets 212,478,508.59 206,849,649.56
Non-current assets 135,055,007.46 137,272,735.26
Total assets 347,533,516.05 344,122,384.82
Current liabilities 5,572,138.92 2,977,404.77
Non-current liabilities
Total liabilities 5,572,138.92 2,977,404.77
Non-controlling interest
Equity attributable to owners of
341,961,377.13 341,144,980.05
parent company
Proportionate share in net assets 169,749,627.61 169,344,368.10
Adjustments
Goodwill
Unrealized profit in internal
trading
Others
Carrying amount of investments in
169,749,627.61 169,344,368.10
joint ventures
Fair value of equity investments in
joint ventures in association with
quoted price
106
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Operating revenue 7,652,485.43 7,720,975.78
Net profit 816,397.08 524,809.72
Net profit of discontinued operations
Other comprehensive income
Total comprehensive income 816,397.08 524,809.72
Dividend from joint ventures
received in current period
4. Aggregated financial information of insignificant joint ventures and associates
Closing balance/current period Opening balance/preceding
Items
cumulative period comparative
Joint ventures
Total carrying amount of investments 2,814,642.32 2,811,932.71
Proportionate shares in the following items
Net profit
6,021.36 155,401.41
Other comprehensive income
Total comprehensive income
6,021.36 155,401.41
VII. Risks related to financial instruments
The Company aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to
mitigate the adverse effects that the risks of financial instruments have on the Company’s financial performance. Based on such
objectives, the Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits.
The Company has exposure to the following risks from its use of financial instruments, which mainly include: credit risk, liquidity
risk, and market risk. Management have deliberated and approved policies concerning such risks, and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation.
The Company’s credit risk is primarily attributable to receivables. In order to control such risks, the Company has taken the
following measures:
1. The company’s cash in bank is kept in the high-credit-rating financial institution; therefore the credit risk is low.
2. Accounts receivable and notes receivable
As the Company only conducts business with credible and well-reputed third parties. Normally, the Group does not obtain collateral
from customers. The Company manages credit risk aggregated by customers. As of June 30, 2015, the Company’s risks were
centered in certain credit risks, and 20.25% (2014: 15.07 %) of the total accounts receivable was due from the five largest customers
of the Company. The Company held no collateral or other credit enhancement on balance of receivables.
107
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(1) Analysis of receivables not past due but impaired and receivables past due but not impaired are as follows:
Closing balance
Past due but not impaired
Items Neither past due
Within one Over 2 Total
nor impaired 1-2 years
year years
Notes receivable 24,013,653.27 24,013,653.27
Accounts
911,426,092.51 93,884,218.46 1,005,310,310.97
receivable
Other
19,203,501.34 7,297,955.47 26,501,456.81
receivables
Subtotal 954,643,247.12 101,182,173.93 1,055,825,421.05
(Continued)
Opening balance
Past due but not impaired
Items Neither past due
Within one Total
nor impaired 1-2 years Over 2 years
year
Notes 34,375,641.37 34,375,641.37
receivable
Accounts 653,605,556.40 75,472,435.95 729,077,992.35
receivable
Other 21,657,023.03 3,298,238.94 24,955,261.97
receivables
Subtotal 709,638,220.80 78,770,674.89 788,408,895.69
(2) Please refer to notes to account receivable for details of individually impaired account receivable.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated with financial
liabilities, which is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failure in collecting
liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company utilized financing tools such as notes settlement, bank borrowings, etc. and adopts long
and short financing methods to optimizing financing structures, and finally maintains a balance between financing sustainability and
flexibility. The Company has obtained credit limit from several commercial banks to meet working capital requirements and
expenditures.
Financial instruments classified based on remaining time period till maturity
Closing balance
Items Carrying amount Contract amount Within one year
Over 3
not yet 1-3 years
years
discounted
Bank borrowings 471,000,000.00 471,000,000.00 471,000,000.00
Notes payable 56,638,063.00 56,638,063.00 56,638,063.00
Accounts payable 1,090,326,852.46 1,090,326,852.46 1,090,326,852.46
Interest payable 661,594.44 661,594.44 661,594.44
108
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Closing balance
Items Carrying amount Contract amount Within one year
Over 3
not yet 1-3 years
years
discounted
Dividend
1,692,213.38 1,692,213.38 1,692,213.38
payable
Long-term payable 80,118.00 80,118.00 80,118.00
Subtotal
1,620,398,841.28 1,620,398,841.28 1,618,626,509.90 1,692,213.38 80,118.00
(Continued)
Opening balance
Items Contract amount
1-3 Over 3
Carrying amount not yet Within one year
years years
discounted
Bank borrowings 403,000,000.00 413,727,139.73 413,727,139.73
Notes payable 116,816,997.65 116,816,997.65 116,816,997.65
Accounts payable 920,559,456.30 920,559,456.30 920,559,456.30
Interest
691,830.29 691,830.29 691,830.29
payable
Dividend
1,946,045.39 1,946,045.39 1,946,045.39
payable
Long-term payable 80,118.00 80,118.00 80,118.00
Subtotal 1,443,094,447.63 1,453,821,587.36 1,453,741,469.36 80,118.00
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash flows due to
changes in market price.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value of financial instruments or future cash flows due to
changes in market interest. The Company’s interest risk relates mainly to borrowings with floating interest rate.
As of June 30, 2015, balance of borrowings with interest accrued at certain basis point higher from statutory benchmark interest rate
totaled 471,000，000.00 yuan (2014: 403,000，000.00 yuan). If interest rates had been 50 basis points higher or lower and all other
variables were held constant, the Company’s gross profit and equity will not be significantly affected.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in exchange rate. The Company is mainly operated in mainland China with a
small amount of imports and exports, whose main activities are denominated in RMB, hence, the Company bears insignificant
market risk arising from foreign exchange changes.
Please refer to notes to foreign currency monetary items for details in foreign currency financial assets and liabilities at the end of the
period.
VIII. Related party relationships and transactions
109
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
(I) Related party relationships
1. Parent company
(1) Parent company
Registered Holding Voting right
Business capital proportion proportion
Parent company Place of registration
nature (unit:RMB'0 over the over the
000) Company (%) Company (%)
No. 2 Tudi 2 Road,
China Putian Zhongguan village
Information
Information economy zone, 190,305.00 53.49 53.49
industry
Industry Co., Ltd. Haidian district,
Beijing
(2) The ultimate controlling party of the company is China Putian Information Industry Co.,
2. Please refer notes to equity in other entities for details on the Company’s subsidiaries.
3. Joint ventures and associates of the Company
Please refer to notes to equity in other entities for details on the Company’s significant joint ventures and associates. Details of other
joint ventures or associates carrying out related party transactions with the Company in current period or in preceding period but with
balance in current period are as follows:
Joint ventures or associates Relationships with the Company
Putian High Technology Industry Co., Ltd. Joint ventures
Nanjing Prachanda Live Optical Network Co., Ltd. Associates
4. Other related parties of the Company
Related parties Relationships with the Company
China Putian Information Industry Co., Ltd. Controlling shareholder of the parent company
Chengdu Putian Telecommunications Cable Co., Ltd. Controlled by the parent company
Nanjing Putian Swanking Electrical Co., Ltd. Controlled by the parent company
Putian Institute of Technology Co., Ltd. Controlled by the parent company
Shanghai Putian Post And Telecommunications
Controlled by the parent company
Technology Co., Ltd.
Beijing Great Gragon Information Technology
Controlled by the parent company
International Co., Ltd.
Hangzhou Hongyan Dongbei Photoelectric Technology Co.,
Controlled by the parent company
Ltd.
Shanghai Putian Network Technology Co., LTD. Controlled by the parent company
PUTIAN Telecommunications Co., Ltd. Controlled by the parent company
Beijing Picom Telecommunications Equipment Co., Ltd. An auxiliary unit
(II) Related party transactions
1. Purchase and sale of goods, rendering and receiving services
(1) Purchase of goods and receiving of services
110
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Related parties Current period Preceding period
Content of transaction
cumulative comparative
Nanjing Prachanda Live
Optical Network Co., Ltd. Telecommunications 16,922,738.57 10,965,345.57
Chengdu Putian
Telecommunications Cable Co., Telecommunications 12,703,630.67 26,546,759.66
Ltd.
Nanjing Putian Swanking
Electrical Co., Ltd. Telecommunications 100,629.47
China Putian Information
Telecommunications 14,298,414.92
Industry Co., Ltd.
2) Sale of goods and rendering of services
Related parties Preceding period
Content of transaction Current period cumulative
comparative
China Putian Information
Telecommunications 24,484,664.74 21,328,788.21
Industry Co., Ltd.
Shanghai Putian Post And
Telecommunications Telecommunications 106,581.20
Technology Co., Ltd.
Shanghai Putian Network
Telecommunications 21,452.99
Technology Co., LTD.
Beijing Great Gragon
Information Technology Telecommunications 1,052,471.79
International Co., Ltd.
Putian Information
Telecommunications 5,673,335.04
Technology Co., Ltd.
2. Related party leases
(1) The Company as the lessor
Lease income for Lease income for the
Lessees Types of asset leased
current period preceding period
Nanjing Prachanda Live Optical Building and
Network Co., Ltd. 299,969.28 246,432.00
structure
(2) The Company as the lessee
Property
Types of Lease expenses
Lease expenses for Property services services for
Lessors asset for the preceding
current period for current period preceding
leased period
period
Putian High
Building
Technology
and 3,643,980.65 3,563,577.35 711,346.00
Industry Co.,
structure
Ltd.
111
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
3. Related party guarantees
The Company and its subsidiaries as guaranteed parties
Whether the
Commencement
Guarantors Amount guaranteed Maturity date guarantee is
date
mature
China Putian
Information 20,000,000.00 2015/2/3 2016/2/1 No
Industry Group Co.
China Putian
Information 30,000,000.00 2015/1/26 2016/1/20 No
Industry Group Co.
China Putian
Information 30,000,000.00 2015/2/6 2016/2/5 No
Industry Group Co.
China Putian
Information 30,000,000.00 2014/9/19 2015/9/18 No
Industry Group Co.
China Putian
Information 20,000,000.00 2015/5/29 2016/5/29 No
Industry Group Co.
China Putian
Information 44,000,000.00 2015/5/7 2016/5/7 No
Industry Group Co.
China Putian
Information 20,000,000.00 2015/3/27 2016/3/24 No
Industry Group Co.
China Putian
Information 30,000,000.00 2015/6/5 2016/6/5 No
Industry Group Co.
China Putian
Information 20,000,000.00 2014/12/8 2015/12/8 No
Industry Group Co.
China Putian
Information 30,000,000.00 2014/9/23 2015/9/22 No
Industry Group Co.
China Putin Information
20,000,000.00 2015/3/11 2016/3/2 No
Industry Group Co.
China Putin
Information 20,000,000.00 2015/5/29 2016/5/26 No
Industry Group Co.
China Putin
Information 10,000,000.00 2015/6/1 2016/5/26 No
Industry Group Co.
China Putin
Information 20,000,000.00 2015/1/8 2016/1/7 No
Industry Group Co.
China Putin
Information 10,000,000.00 2014/9/23 2015/9/23 No
Industry Group Co.
China Putin
Information 20,000,000.00 2014/11/28 2015/11/27 No
Industry Group Co.
China Putin
Information 10,000,000.00 2014/9/25 2015/9/25 No
112
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Whether the
Commencement
Guarantors Amount guaranteed Maturity date guarantee is
date
mature
Industry Group Co.
China Putin
Information 10,000,000.00 2015/1/20 2015/12/28 No
Industry Group Co.
China Putin
Information 20,000,000.00 2015/4/1 2016/4/1 No
Industry Group Co.
4. Key management’s emoluments
Items Current period cumulative Preceding period comparative
Key management’s emoluments 651,080.00 540,048.00
(III) Balance due to or from related parties
1. Balance due from related parties
Closing balance Opening balance
Items Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Nanjing Putin Zhongyou
Accounts
Telecommunication 16,540,884.02 262,984.58 17,160,807.69 146,988.82
receivable
Co., Ltd.
Putin Information
Accounts
Technology Company 3,191,570.00 2,937,684.00
receivable
Ltd.
Accounts Shanghai Putin Network
553,619.70 52,207.41 598,079.70 47,698.47
receivable Technology Co., LTD.
Accounts Shanghai Putin Youtong
13,104,258.00 1,313,680.20 12,978,934.00 1,297,893.40
receivable Technology Co., Ltd.
PUTIAN
Accounts
Telecommunications 222,173.00 338,034.00
receivable
Co., Ltd.
Subtotal 33,612,504.72 1,628,872.19 34,013,539.39 1,492,580.69
Other China Putin Information
1,380,000.00 1,380,000.00
receivables Industry Co., Ltd.
Beijing Picom
Other
Telecommunications 28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
receivables
Equipment Co., Ltd.
Subtotal 30,292,122.71 28,912,122.71 30,292,122.71 28,912,122.71
2. Balance due to related parties
Items Related parties Closing balance Opening balance
Accounts Nanjing Prachanda Live
44,664,379.74 36,564,775.61
payable Optical Network Co., Ltd.
113
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Items Related parties Closing balance Opening balance
Accounts China Putin Information
19,944,960.40 17,110,160.00
payable Industry Co., Ltd.
Chengdu Putin
Accounts
Telecommunications Cable 14,863,247.88
payable
CO., Ltd.
Accounts Putin High Technology
219,850.68
payable Industry Co., Ltd.
Accounts Nanjing Putin Swanking
318,109.76 744,613.02
payable Electrical Co., Ltd.
Accounts Nanjing Putin Communication
135,950.00
payable Industry Co., Ltd.
Accounts Shanghai Putin Network
11,685.00 11,685.00
payable Technology Co., LTD.
Subtotal 79,938,332.78 54,651,084.31
Advances China Putin Information
11,388,403.53 8,158,434.00
received Industry Co., Ltd.
Advances China Putin Information
10,400.00 12,590.00
received Industry Group
Subtotal 11,398,803.53 8,171,024.00
Other Putin High Technology
5,598,851.13 1,991,947.51
payables Industry Co., Ltd.
Other Nanjing Prachanda Live
147,562.00 1,372,064.01
payables Optical Network Co., Ltd.
Subtotal 5,746,413.13 3,364,011.52
IX. Commitments and contingencies
Off the balance sheet date, there are no significant commitment matters to reveal.
X. Other significant events
1. Identification basis and accounting policies for reportable segments
Reportable segments are identified based on operating segments which are determined based on the structure of the Company’s
internal organization, management requirements and internal reporting system. An operating segment is a component of the
Company that:
(1) Engages in business activities from which it may earn revenues and incur expenses;
(2) Whose financial performance are regularly reviewed by Management to make decisions about resource to be allocated to the
segment and assess its performance; and
(3) For which financial information regarding financial position, financial performance and cash flows is available.
The Company identified reportable segments based on products. Assets and liabilities shared by different segments are allocated
between segments proportionate to their respective size.
114
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
2. Financial information of reportable segments
Products segment
Video Generic Electrical Wiring Inter-segment
Items Total
conferencing cable products products offsetting
Revenue
from main 299,357,116.68 141,976,514.49 54,185,202.22 454,918,063.48 -71,846,851.48 878,590,045.39
operations
Cost of
main 244,475,588.18 112,472,131.59 37,981,402.17 402,119,442.41 -71,846,851.48 725,201,712.87
operations
Total assets
427,679,323.21 256,707,246.31 139,504,015.94 1,762,063,603.94 -363,885,355.95 2,222,068,833.45
Total
287,350,259.11 164,581,846.95 51,553,697.88 1,468,098,350.03 -197,760,151.04 1,773,824,002.93
liabilities
XII. Notes to items of parent company financial statements
(I) Notes to items of parent company balance sheet
1. Accounts receivable
(1) Details
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
Receivables of individually
significant amount and with
provision made on an
individual basis
Receivables with provision
made on a collective basis
607,166,249.62 99.70 12,968,179.41 2.14 594,198,070.21
using portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 607,166,249.62 99.70 12,968,179.41 2.14 594,198,070.21
Receivable of individually
insignificant amount but with
1,837,610.12 0.30 1,837,610.12 100.00
provision made on an
individual basis
Total 609,003,859.74 100.00 14,805,789.53 2.43 594,198,070.21
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
115
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
Receivables of individually
significant amount and with
provision made on an
individual basis
Receivables with provision
made on a collective basis
459,359,209.84 99.60 12,051,731.57 2.62 447,307,478.27
using portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 459,359,209.84 99.60 12,051,731.57 2.62 447,307,478.27
Receivable of individually
insignificant amount but with
1,837,610.12 0.40 1,837,610.12 100.00
provision made on an
individual basis
Total 461,196,819.96 100.00 13,889,341.69 447,307,478.27
2) In portfolios, accounts receivable with provision made on a collective basis with age analysis method
Closing balance
Ages
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 434,725,137.54
1-2 years 116,841,470.67
2-3 years 31,210,528.44 3,121,052.84 10.00
3-4 years 18,568,510.43 5,570,553.13 30.00
4-5 years 2,218,162.72 887,265.09 40.00
5-6 years 1,065,657.33 852,525.86 80.00
Over 6 years 2,536,782.49 2,536,782.49 100.00
Subtotal 607,166,249.62 12,968,179.41
(2) Provisions made, collected or reversed in current period
Provision for bad debts made in current period totaled 916,447.84 yuan, and collected or reversed in current period totaled 0.00
yuan.
(3) Details of the top 5 debtors with largest balances
116
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Proportion to the total
Provision for bad
Debtors Book balance balance of accounts
debts
receivable (%)
China Telecom Co., Ltd. Jiangsu Branch 135,258,031.91 22.21
China Unicom Hebei Branch 21,072,951.33 3.46
Agricultural Bank of China 20,630,202.11 3.39
China Telecom Co., Ltd. Chongqing
Branch 16,399,182.15 2.69
China Telecom Co., Ltd. Xian Branch 13,502,626.61 2.22
Subtotal 206,862,994.11 33.97
2. Other receivables
(1) Details
1) Details on categories of other receivables
Closing balance
Categories Book balance Provision for bad debts
Proportion Provision Carrying amount
Amount Amount
(%) proportion (%)
Receivables of individually
significant amount and with
32,997,289.04 44.06 32,997,289.04 100.00
provision made on an individual
basis
Receivables with provision
made on a collective basis using
41,892,080.75 55.94 11,702,028.19 35.91 30,190,052.56
portfolios with similar credit
risk features
Portfolio 1 9,302,906.26 12.42 9,302,906.26
Portfolio 2 32,589,174.49 43.52 11,702,028.19 35.91 20,887,146.30
Receivable of individually
insignificant amount but with
provision made on an individual
basis
Total 74,889,369.79 100.00 44,699,317.23 59.69 30,190,052.56
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Proportion Provision Carrying amount
Amount Amount
(%) proportion (%)
Receivables of individually
significant amount and with
32,997,289.04 45.71 32,997,289.04 100.00
provision made on an
individual basis
Receivables with provision 39,188,076.35 54.29 11,560,362.54 33.54 27,627,713.81
made on a collective basis
117
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
using portfolios with similar
credit risk features
Portfolio 1 4,720,257.57 6.54 4,720,257.57
Portfolio 2 34,467,818.78 47.75 11,560,362.54 33.54 22,907,456.24
Receivable of individually
insignificant amount but with
provision made on an
individual basis
Total 72,185,365.39 100.00 44,557,651.58 61.73 27,627,713.81
2) Other receivables of individually significant amount and with provision made on an individual basis
Provision for bad Provision Reasons for provision
Debtors Book balance
debts proportion (%) made
Putin
Aging longer difficult
Telecommunications 4,085,166.33 4,085,166.33 100.00
to recover
(H.K.) Co., Ltd.
Beijing Picom
Aging longer difficult
Telecommunications 28,912,122.71 28,912,122.71 100.00
to recover
Equipment Co., Ltd.
Subtotal 32,997,289.04 32,997,289.04
3) In portfolios, other receivables with provision made on a collective basis with age analysis method
Closing balance
Ages
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 11,941,759.66
1-2 years 5,575,552.67
2-3 years 1,797,187.01 179,718.70 10
3-4 years 3,000,651.15 900,195.35 30
4-5 years 919,466.77 367,786.71 40
5-6 years 2,901,149.22 2,320,919.38 80
Over 6 years 7,933,408.06 7,933,408.06 100
Subtotal 32,589,174.49 11,702,028.19
(2) Provisions made, collected or reversed in current period
Provisions for bad debts made in current period totaled 1,741,665.65 yuan, and collected or reversed in current period totaled
1,600,000.00 yuan.
(3) Other receivables categorized by nature
Nature of receivables Closing balance Opening balance
Fund for travelling 8,653,311.34 1,083,920.29
Deposit as security 11,386,576.45 7,141,319.73
118
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Temporary advance payment receivable 53,189,924.41 63,324,673.04
Others 1,659,557.59 635,452.33
Total 74,889,369.79 72,185,365.39
(4) Details of the top 5 debtors with largest balances
Proportion to the
total balance of Provision for
Debtors Nature of receivables Book balance Age
other receivables bad debts
(%)
China Mobile
Communication Co., Security deposit 3,150,000.00 2-3 years 4.21% 15,000.00
Ltd. Jiangsu Branch
China Putin
Information Industry Security deposit 1,330,000.00 1-2 years 1.78%
Co., LTD.
China Unicom Temporary advance
730,000.00 5-6 years 0.97% 600,000.00
Liaoning Branch payment receivable
Putin
Telecommunications 4,085,166.33
Temporary advance
(H.K.) Co., Ltd. Over 6 years 5.45% 4,085,166.33
payment receivable
Beijing Picom
Temporary advance
Telecommunicatio-ns 28,912,122.71 Over 6 years 38.61% 28,912,122.71
payment receivable
Equipment Ltd.
Subtotal
38,207,289.04 51.02% 33,597,289.04
3. Long-term equity investments
(1) Categories
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Investments in
173,787,270.64 1,910,520.00 171,876,750.64 173,787,270.64 1,910,520.00 171,876,750.64
subsidiaries
Investments in
associates and 183,766,446.00 183,766,446.00
182,120,992.57 182,120,992.57
joint ventures
Total 357,553,716.64 1,910,520.00 355,643,196.64 355,908,263.21 1,910,520.00 353,997,743.21
(2) Investments in subsidiaries
Provision for Closing
impairment balance of
Investees Opening balance Increase Decrease Closing balance
made in current provision for
period impairment
Nanjing Mennekes
57,831,011.71 57,831,011.71
Electrics Co., Ltd.
119
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Provision for Closing
impairment balance of
Investees Opening balance Increase Decrease Closing balance
made in current provision for
period impairment
Nanjing Bada
Telecommunication
5,610,000.00 5,610,000.00
s Equipment Co.,
Ltd.
Nanjing Putin
Changle
Telecommunication 2,610,457.00 2,610,457.00
s Equipment Co.,
Ltd.
Nanjing Putin
Telecommunication
1,294,510.00 1,294,510.00
Technology
Company Ltd.
Nanjing Putin
Information
13,860,000.00 13,860,000.00
Technology
Company Ltd.
Nanjing Putin
Intelligent Building 3,320,003.45 3,320,003.45
Ltd.
Putin
Telecommunication 1,910,520.00 1,910,520.00 1,910,520.00
s (H.K.) Co., Ltd.
Nanjing Putin
Network Company 7,741,140.41 7,741,140.41
Ltd.
Nanjing Postel
Wongzhi
40,997,683.00 40,997,683.00
Telecommunication
s Co., Ltd.
Nanjing South
Telecommunication 33,175,148.00 33,175,148.00
s Co., Ltd.
Nanjing Putin
Datang Information 5,436,797.07 5,436,797.07
Electronic Co., Ltd.
Subtotal 168,350,473.57 173,787,270.64 1,910,520.00
(3) Investments in associates and joint ventures
Increase/decrease
Adjustment in
Investees Opening balance Investment income
Investments Investments other
recognized under
increased decreased comprehensive
equity method
income
Joint ventures
Nanjing
Prachanda Live
12,776,624.47 1,240,193.92
Optical Network
Co., Ltd.
Subtotal 12,776,624.47 1,240,193.92
Associates
120
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Increase/decrease
Adjustment in
Investees Opening balance Investment income
Investments Investments other
recognized under
increased decreased comprehensive
equity method
income
Putin High
Technology 169,344,368.10 405,259.51
Industry Co., Ltd.
Subtotal 169,344,368.10 405,259.51
Total 182,120,992.57 1,645,453.43
(Continued)
Increase/decrease
Closing
Cash balance of
Investees Changes in dividend/profit Provision for Closing balance
Others provision for
other equity declared for impairment impairment
distribution
Joint ventures
Nanjing
Prachanda Live
14,016,818.39
Optical Network
Co., Ltd.
Subtotal
14,016,818.39
Associates
Putin High
Technology 169,749,627.61
Industry Co., Ltd.
Subtotal
169,749,627.61
Total
183,766,446.00
(II) Notes to items of the parent company income statement
1. Operating revenue/cost
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Revenue from main
356,728,650.51 317,710,779.32 590,311,613.59 532,025,730.03
operations
Revenue from other
40,179,602.06 34,396,746.34 24,365,875.65 20,612,891.75
operations
Total 396,908,252.57 352,107,525.66 614,677,489.24 552,638,621.78
2. Investment income
Items Current period cumulative Preceding period comparative
Long-term equity investment income
121
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
by cost method
Long-term equity investment income
by equity method 1,645,453.43 157,112.33
Income from disposal of long-term
equity investment
Total 1,645,453.43 157,112.33
XVI. Other supplementary information
(I) Non-recurring profit or loss
1. Schedule of non-recurring profit or loss of current period
Items Amount Remarks
Gains on disposal of non-current assets, including written-off of
-43,797.53
provision for impairment
Tax refund, credit or exemption approved beyond the power of
authorities, without formal documents, or with occasionality
Government grant included in profit or loss (excluding those closely
2,862,726.34
related to operating activities, or regular government grants)
Fund possession charge from non-financial entities and included in
profit or loss
Gains on acquisition of subsidiaries, joint ventures and associates due
to the surplus of acquisition-date fair value of net identifiable assets
in acquiree over the acquisition cost
Gains on non-cash assets exchange
Gains on assets consigned to the third party for investment or
management
Assets impairment loss incurred due to force majeure such as natural
disasters
Gains on debt restructuring 173.00
Entity restructuring expenses, such as staffing and integrating
expenses
Gains on transactions with unfair value
Net profit gains on subsidiaries acquired through business
combination under common control from the beginning of the
period to the combination date
Contingent gains on non-operating activities
Gains on changes in fair value of held-for-trading financial assets and
liabilities and investment income from disposal of held-for-trading
financial assets and liabilities, and available-for-sale financial
assets, excluding those arising from hedging business related to
operating activities
The reversed provision for impairment of receivables based on
impairment testing on an individual basis
Gains on designated loans
122
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Items Amount Remarks
Gains on changes in fair value of investment properties with
subsequent measurement at the fair value mode
Gains on reconciliation of current period profit or loss following
legal and regulative requirements
Management charges for consigned operations
Other non-operating revenue or expenditures 171,226.31
Other profit or loss satisfying the definition of non-recurring profit or
loss
Subtotal 2,990,328.12
Less: enterprise income tax affected 292,246.29
Non-controlling interest affected (after tax) 723,945.65
Net non-recurring profit or loss attributable to shareholders of the
1,974,136.19
parent company
(II) RONA and EPS
1. Details
EPS (yuan/share)
Weighted average
Profit of the reporting period
RONA (%)
Basic EPS Diluted EPS
Net profit attributable to
shareholders of ordinary shares -4.67 -0.08 -0.08
Net profit attributable to
shareholders of ordinary shares after
deducting non-recurring profit or -5.22 -0.09 -0.09
loss
2. Calculation process of weighted average RONA
Current period
Items Symbols
cumulative
Net profit attributable to shareholders of ordinary shares A -16,313,763.93
Non-recurring profit or loss B 1,974,136.19
Net profit attributable to shareholders of ordinary shares
C=A-B -18,287,900.12
after deducting non-recurring profit or loss
Opening balance of net assets attributable to shareholders
D 364,179,913.14
of ordinary shares
Net assets attributable to shareholders of ordinary shares
increased due to offering of new shares or conversion of E
debts into shares
Number of months counting from the next month when the
F
net assets were increased to the end of the reporting period
Net assets attributable to shareholders of ordinary shares
decreased due to share repurchase or cash dividends G
appropriation
123
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2015
Current period
Items Symbols
cumulative
Number of months counting from the next month when the
H
net assets were decreased to the end of the reporting period
Number of months in the reporting period K 12
Weighted average net assets L= D+A/2+ E×F/K-G×H/K 355,873,031.18
Weighted average RONA M=A/L -4.67
Weighted average RONA after deducting non-recurring
N=C/L -5.22
profit or loss
3. Calculation process of basic EPS and diluted EPS
(1) Calculation process of basic EPS
Current period
Items Symbols
cumulative
Net profit attributable to shareholders of ordinary shares A -16,313,763.93
Non-recurring profit or loss B 1,974,136.19
Net profit attributable to shareholders of ordinary shares
C=A-B -18,287,900.12
after deducting non-recurring profit or loss
Opening balance of total shares D 215,000,000.00
Number of shares increased due to conversion of reserve to
E
share capital or share dividend appropriation
Number of shares increased due to offering of new shares
F
or conversion of debts into shares
Number of months counting from the next month when the
G
share was increased to the end of the reporting period
Number of shares decreased due to share repurchase H
Number of months counting from the next month when the
I
share was decreased to the end of the reporting period
Number of shares decreased in the reporting period J
Number of months in the reporting period K 12
Weighted average of outstanding ordinary shares L=D+E+F×G/K-H×I/K-J 215,000,000.00
Basic EPS M=A/L -0.08
Basic EPS after deducting non-recurring profit or loss N=C/L -0.09
(2)The diluted EPS and the basic EPS have the same calculation process.
124
