Nanjing Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2018 Stock Code: 200468 Short Form of the Stock: NJTEL-B Notice No.: 2018-056 Nanjing Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2018 I. Important Notice The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future development plan of the Company; investors should found in the full-text of annual report that published on media appointed by CSRC. Objection statement of directors, supervisors and senior executives Name Position Content and reason Statement Other directors attending the Meeting for annual report deliberation except for the followed Name of director absent Title for absent director Reasons for absent Attorney Prompt of non-standard audit opinion □ Applicable √ Not applicable Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting period □ Applicable √ Not applicable The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve. Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period □ Applicable √ Not applicable II. Basic information of the company 1. Company profile Short form of the stock NJ TEL- B Stock code 200468 Stock exchange for listing Shenzhen Stock Exchange Person/Way to contact Secretary of the Board Rep. of security affairs Name Li Jing Xiao Hong No. 1 Putian Road, Qinhuai District Nanjing, No. 1 Putian Road, Qinhuai District Nanjing, Office add. Jiangsu Province Jiangsu Province Tel. 86-25-58962308 86-25-58962072 E-mail lijing@postel.com.cn xiaohong@postel.com.cn 2. Main accounting data and Changes of shareholders Whether it has retroactive adjustment or re-statement on previous accounting data 1 Nanjing Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2018 √ Yes □ No Reasons of retroactive adjustment or re-statement Accounting errors correction Increase/decrease in Same period of last year this report y-o-y Current period Before the After the adjustment After the adjustment adjustment Operating revenue (RMB) 966,850,604.95 1,012,396,407.39 1,012,396,407.39 -4.50% Net profit attributable to shareholders of -10,421,705.60 -13,246,723.63 -13,246,723.63 21.33% the listed Company (RMB) Net profit attributable to shareholders of the listed Company after deducting -43,592,615.47 -14,283,773.58 -14,283,773.58 -205.19% non-recurring gains and losses (RMB) Net cash flow arising from operating -225,275,228.93 -136,164,593.81 -136,164,593.81 -65.44% activities (RMB) Basic earnings per share (RMB/Share) -0.05 -0.06 -0.06 16.67% Diluted earnings per share (RMB/Share) -0.05 -0.06 -0.06 16.67% Weighted average ROE -3.02% -3.98% -3.98% 0.96% Increase/decrease in this report-end over End of last period that of last End of current period period-end Before the After the adjustment After the adjustment adjustment Total assets (RMB) 2,110,657,325.69 2,116,312,318.51 2,114,332,229.50 -0.17% Net assets attributable to shareholder of 339,704,730.63 352,228,571.54 350,248,482.53 -3.01% listed Company (RMB) Reasons of accounting policy change and accounting error correction According to the relevant requirements addressed by the Jiangsu Securities Regulatory Bureau in the Decision Relating to Issue of Warning Letter to Nanjing Potevio Communication Co., Ltd. on 10 July 2018, the Company made correction to the accounting errors for the financial statements for the years 2014 to 2017 under retrospective restatement method as discussed and approved at the 10th meeting of the 7th session of the board of the Company held on 13 July 2018. For details, please refer to the Announcement dated 14 July 2018 relating to correction of prior accounting errors and the announcement dated 1 August 2018 relating to correction of the annual report for 2017. 3. Number of shares and shares held In Share Total preference shareholders Total common shareholders at with voting rights recovered 8,326 0 period-end at end of reporting period (if applicable) To ten shareholders Number of share Nature of Proportion of Number of Number of non-circulation stock Shareholders pledged/frozen shareholder shares held shares held held State of share Amount China Potevio State-owned Company 53.49% 115,000,000 115,000,000 corporation Limited GUOTAI JUNAN Foreign SECURITIES( 4.46% 9,596,527 0 corporation HONGKONG) LIMITED Shenwan 4.46% 9,587,925 0 Foreign HongYuan 2 Nanjing Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2018 (H.K.) Limited corporation Domestic Zhang Huaian 1.31% 2,807,000 0 nature person Domestic Zheng Enyue 1.12% 2,405,739 0 nature person Domestic Sun Huiming 0.93% 2,007,110 0 nature person Guosen Securities Foreign 0.87% 1,861,882 0 (H.K.) Broker corporation Co., Ltd. Domestic Gu Jinhua 0.83% 1,783,771 0 nature person BOCI Foreign SECURITIES 0.80% 1,716,945 0 corporation LIMITED LI SHERYN Foreign nature 0.53% 1,145,000 0 ZHAN MING person Explanation on associated Among the top ten shareholders, China Potevio Company Limited is neither a related party nor a relationship among the aforesaid person acting in concert with the others. It’s unknown by the Company whether there are related shareholders parties or persons acting in concert among the other shareholders. Shareholders involving margin N/A business (if applicable) 4. 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 5. Total preferred stock shareholders of the Company and shares held by top ten shareholders with preferred stock held □ Applicable √ Not applicable No preferred stock in reporting period. 6. Corporation Bonds Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when annual report approved for released or fail to cash in full on due No III. Discussion and Analysis of Operation 1. Operation in the period (brief) Dose the Company need to comply with disclosure requirements of the special industry No 3 Nanjing Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2018 During the reporting period, the Company adhered to the general working policy of seeking for steady progress, deepened reform and innovation under the annual operating tasks, focused on improving quality and efficiency, promoted the steady development of traditional industries, and positively arranged development of new industries. In general, completion of the budget for the first half of the year was basically normal, industrial restructuring continued to advance, and the Company maintained an orderly production and operation. Maintain a healthy and orderly development trend. In the first half of 2018, the Company realized operating income of RMB967 million, with a decrease of 4.50% compared with the same period of the previous year; net profit attributable to shareholders of listed company RMB(10,421,700) million, with a decrease of RMB(2.825) million in loss. Y-o-y changes of main financial data In RMB Current period Same period of last year Y-o-y increase/decrease Reasons for changes Operating revenue 966,850,604.95 1,012,396,407.39 -4.50% Operating costs 824,358,695.32 854,596,490.18 -3.54% Sales expenses 79,696,183.64 79,331,110.14 0.46% Administration expenses 83,788,682.07 72,960,165.72 14.84% Finance expenses 10,198,465.39 8,701,588.82 17.20% 1,646,117.70 3,203,411.84 -48.61% Profit from subsidiary Income tax expenses declined on a y-o-y basis R & D revenue 35,816,398.34 29,700,022.89 20.59% -225,275,228.93 -136,164,593.81 -65.44% Capital return in the Net cash flow arising period declined from a from operating activities year earlier 22,505,195.83 -24,348,894.33 192.43% The Company and subsidiary Bada Communication received Net cash flow arising a levy compensation in from investment activities the period, thus the net cash flow arising from investment activities increased Net cash flow arising 49,041,298.97 -114,844,078.68 142.70% Bank loans increased from financing activities from a year earlier -153,821,091.18 -275,380,802.71 44.14% The cash flow from Net increase of cash and investment and financing cash equivalent activities increased on a y-o-y basis in the period 407,793.10 -618,093.05 165.98% Profit from joint-stock Investment income enterprise increased on a y-o-y basis 30,156,818.80 -663,364.82 4,646.04% Part of the house from the Company and subsidiary Bada Communication are collected by the Assets disposal income government in the period, expropriation compensation received in the period 5,799,343.86 2,784,809.60 108.25% The government grant with routine activities Other income concerned recognized in the period increased on a y-o-y basis Operation profit -3,522,499.41 -7,885,653.07 55.33% Impact by relocation of part of the operational Total profit -1,005,231.26 -5,382,365.36 81.32% entities site and internal Net profit -2,651,348.96 -8,585,777.20 69.12% revolution adjustment as well as the R&D input, Net profit attributable to -10,421,705.60 -13,246,723.63 21.33% the operation revenue has the owner of the parent a y-o-y declined and 4 Nanjing Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2018 Company period charge growth on a y-o-y basis; the income of assets disposal increased due to the expropriation compensation received in the period 2. Relevant items involving financial report (1) Particulars about the changes in aspect of accounting policy, estimates and calculation method compared with the financial report of last fiscal period □ Applicable √ Not applicable The Company had no particulars about the changes in aspect of accounting policy, estimates or calculation method in the reporting period. (2) Major accounting errors within reporting period that needs retrospective restatement √Applicable □ Not applicable According to the relevant requirements addressed by the Jiangsu Securities Regulatory Bureau in the Decision Relating to Issue of Warning Letter to Nanjing Potevio Communication Co., Ltd. on 10 July 2018, the Company made correction to the accounting errors for the financial statements for the years 2014 to 2017 and the third quarter of 2017 under retrospective restatement method as discussed and approved at the 10th meeting of the 7th session of the board of the Company held on 13 July 2018. For details, please refer to the Announcement dated 14 July 2018 relating to correction of prior accounting errors. (3) Particulars about the change of consolidation range compared with the financial report of last fiscal period □ Applicable √ Not applicable The Company had no change of consolidation range in reporting period. Board of Directors of Nanjing Putian Telecommunications Co., Ltd. 28 August 2018 5