Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 Stock Code: 200468 Short Form of the Stock: NJ TEL B Notice No.: 2019-045 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 1 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 Section I. Important Note 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. All the directors are present the meeting of the Board for deliberating the Third Quarter Report of the Company in person. Wang Wenkui, person in charge of the Company, head of the accounting works Wang Huailin and Wang Huailin, accounting body principals (accountant in charge) hereby confirms that the Financial Report of the Third Quarterly Report is authentic, accurate and complete. 2 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 Section II. Basic information of Company I. Main accounting data and index Whether it has retroactive adjustment or re-statement on previous accounting data or not □Yes √No Current period-end Period-end of last year Increase/decrease Total assets (RMB) 1,808,039,811.07 2,120,744,292.41 -14.75% Net assets attributable to shareholders of listed company 281,727,950.08 355,289,728.24 -20.70% (RM B) Increase/decrease in Increase/decrease in From year-begin to comparison with Current period comparison with same end of the Period year-begin to period of last year Period-end of last year Operating revenue (RM B) 277,519,139.93 -37.71% 1,034,716,511.73 -26.74% Net profit attributable to shareholders of the listed company -16,033,203.08 -101.83% -73,561,727.96 -300.54% (RM B) Net profit attributable to shareholders of the listed company -17,529,611.58 -525.19% -76,390,167.19 -64.65% after deducting non-recurring gains and losses (RM B) Net cash flow arising from -- -- -174,200,790.16 30.78% operating activities (RM B) Basic earnings per share -0.074 -100.00% -0.342 -302.35% (RM B/Share) Diluted earnings per share -0.074 -100.00% -0.342 -302.35% (RM B/Share) Weighted average ROE -5.53% -3.17% -23.10% -17.72% Items and amount of extraordinary profit (gains)/losses √Applicable □Not applicable In RM B Amount from year-begin to Item Note end of the Period Gains/losses from the disposal of non-current asset (including the -8,753.38 write-off that accrued for impairment of assets) 3 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to 2,778,036.68 national standards, which are closely relevant to enterprise’s business) Gains/losses of debt restructuring 897,752.10 Other non-operating income and expenditure except for the -36,400.96 aforementioned items Less: impact on income tax 266,154.33 Impact on minority shareholders’ equity (post-tax) 536,040.88 Total 2,828,439.23 -- 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 II. State ment of the total shareholders and s hares-held of top ten shareholders at end of the Period 1. Number of common shareholders and preference shareholders with voting rights recovered and top ten common shareholders In Share Total preference shareholders Total number of common with voting rights recovered at shareholders at the end of report 8,970 0 period end of reporting period (if applicable) Top ten shareholders Amount of Number of share pledged/frozen Nature of Proportion of Amount of shares Shareholders non-tradable shareholder shares held held State of share Amount shares held China Potevio State-owned Company 53.49% 115,000,000 115,000,000 corporate Limited Shenwan Hongyuan Overseas 2.63% 5,646,500 0 Securities (Hong corporate Kong) co., LTD 4 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 GUOTAI JUNAN Overseas SECURITIES(H 2.55% 5,481,913 0 corporate ONGKONG) LIM ITED Domestic nature Zheng Enyue 1.14% 2,449,739 0 person Domestic nature Sun Huiming 0.93% 2,007,110 0 person Guosen Securities (HK) Brokerage Overseas 0.88% 1,901,882 0 Company corporate Limited Domestic nature Gu Jinhua 0.87% 1,871,371 0 person BOCI Overseas SECURITIES 0.68% 1,466,945 0 corporate LIM ITED Domestic nature Xiang Yan 0.42% 910,602 0 person Domestic nature Zheng Hongquan 0.39% 831,500 0 person Particular about top ten shareholders with tradable shares held Type of shares Shareholders Amount of tradable shares held Type Amount Domestically Shenwan Hongyuan Securities 5,646,500 listed foreign 5,646,500 (Hong Kong) co., LTD shares GUOTAI JUNAN Domestically SECURITIES(HONGKONG) 5,481,913 listed foreign 5,481,913 LIM ITED shares Domestically Zheng Enyue 2,449,739 listed foreign 2,449,739 shares Domestically Sun Huiming 2,007,110 listed foreign 2,007,110 shares Domestically Guosen Securities (HK) Brokerage 1,901,882 listed foreign 1,901,882 Company Limited shares 5 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 Domestically Gu Jinhua 1,871,371 listed foreign 1,871,371 shares Domestically BOCI SECURITIES LIM ITED 1,466,945 listed foreign 1,466,945 shares Domestically Xiang Yan 910,602 listed foreign 910,602 shares Domestically Zheng Hongquan 831,500 listed foreign 831,500 shares Domestically Liang Wei 772,800 listed foreign 772,800 shares Explanation on associated Among the top ten shareholders, China Potevio Company Limited is neither a related party relationship among the top ten nor a person acting in concert with the others. It’s unknown by the Company whet her there shareholders or consistent action are related parties or persons acting in concert among the other shareholders. Explanation on shareholders involving margin business about top N/A ten common shareholders (if applicable) 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 Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy -back agreement dealing in reporting period 2. Total of shareholde rs with preferred stock held and the top ten shareholdings □Applicable √Not applicable 6 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 Section III. Important events I. Particular about major changes from ite ms of main accounting statements and financial indexes as well as reasons √ Applicable □Not applicable Items 2019-9-30 (RM B) 2018-12-31 (RM B) Changed amount (R +,- (%) M ain reasons for major changes M B) 141,688,791.27 261,938,068.72 -120,249,277.45 -45.91% Account paid for procurement M onetary fund increased in the period Account paid in 32,143,134.36 188,848,712.69 -156,705,578.33 -82.98% The invoice of procurement repaid advance to suppliers in earlier was collected in the period, and written down the account paid in advance 17,366,462.65 9,472,383.76 7,894,078.89 83.34% Investment for the construction of Construction in product research & manufacturing progress center of subsidiary Putian Datang in the period Account received in 23,954,615.81 259,545,648.66 -235,591,032.85 -90.77% Part of the products were sold to advance offset the account received in advance during the period Taxes Payable 2,494,979.34 17,230,159.02 -14,735,179.68 -85.52% VAT payable declined at end of the period Long term payable 26,315,789.49 26,315,789.49 Carry out financial leasing business in the period, and has a balance of financial leasing payable at end of the period Total non-current 32,320,662.49 7,296,315.00 25,024,347.49 342.97% Carry out financial leasing business liabilities in the period, and the long-term payable increased at end of the period Retained profit -114,288,504.76 -40,726,776.80 -73,561,727.96 -180.62% Loss in the reporting period, and the accumulated retained profit declined. From Jan. to From Jan. to Changed amount (R +,- (%) Sept. of 2019 Sept. of 2018 M B) 24,032,020.74 16,474,946.82 7,557,073.92 45.87% Financing interest and expenses Financial expenses increased on a y-o-y basis -441,778.63 333,659.41 -775,438.04 -232.40% Joint-stock enterprise has more Investment income losses over that of last period 7 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 Assets disposal 51,857.87 28,492,927.93 -28,441,070.06 -99.82% No material assets disposal occurred income in the period 2,546,510.07 3,975,586.87 -1,429,076.80 -35.95% Non-operating income as Non-operation government grants reckoned into income current gains/losses are declined over that of last period Operating profit -66,101,632.53 -8,592,622.57 -57,509,009.96 -669.28% 1. During the reporting period, the Total profit -63,844,230.26 -4,969,717.67 -58,874,512.59 -1184.67% industry has in the transition-period Net profit -65,196,745.52 -6,802,722.33 -58,394,023.19 -858.39% of 4G and 5G construction, affected by the capital expenditure and -73,561,727.96 -18,365,534.87 -55,196,193.09 -300.54% purchasing policies of key customers, sales income of the Company declined over that of last Net profit period; 2. The Company strengthen attributable to risk controls and industrial owners’ of parent restructuring in the period, and company removed the venue, operating costs is higher relatively; 3. the non-recurring income decreased over that of last period. -174,200,790.16 -251,675,588.51 77,474,798.35 30.78% The Company intensify efforts to Net cash flow repatriate funds, strengthen capital arising from controls, and the net cash out-flow operation activities from operating declined over that of last period Subtotal cash inflow 1,616,022.97 35,621,425.52 -34,005,402.55 -95.46% The net cash collected from disposal from investment fixed assets, intangible assets and activities other long-term assets in the period declined over that of last period -6,588,145.80 24,138,218.08 -30,726,363.88 -127.29% The net cash collected from disposal Net cash flow fixed assets, intangible assets and arising from other long-term assets in the period investment activities declined over that of last period Net cash flow 54,383,791.05 -2,745,163.86 57,128,954.91 2081.08% The loans paid on due in the period arising from decreased over that of lat period financing activities Net increase in cash -126,300,367.44 -230,374,891.34 104,074,523.90 45.18% The net cash flow arising from and cash equivalents operating and financing activities in the period are increased over that of last period 8 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 II. Progress and influence of the main events as well as solution analysis specification □ Applicable √ Not applicable Progress of shares buy-back □ Applicable √ Not applicable Implementation progress of the reduction of repurchases shares by centralized bidding □ Applicable √ Not applicable III. Commitme nts that the company, shareholders, actual controlle r, offeror, directors, supervisors, senior manage ment or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period □ Applicable √ Not applicable There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period. IV. Particular about security investment □ Applicable √ Not applicable The Company had no security investment in Period. V. Trust financing □ Applicable √ Not applicable The Company had no trust financing in Period. VI. Particulars about de rivatives investment □ Applicable √ Not applicable The Company had no derivatives investment in Period. VII. Registration form for receiving research, communication and intervie w in the report period □ Applicable √ Not applicable No registration form for receiving research, communication or interview in the Period. VII. Guarantee outside against the regulation □Applicable √Not applicable The Company had no guarantee outside against the regulation in the reporting period. 9 Nanjing Putian Telecommunications Co., Ltd. Text of Third Quarterly Report 2019 IX. Non-ope rational fund occupation from controlling shareholders and its related party □ Applicable √ Not applicable The Company had no non-operational fund occupation form controlling shareholders and its related party in the period. Board of Directors of Nanjing Putian Telecommunications Co., Ltd. 31 October 2019 10