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宁通信B:2019年第三季度报告全文(英文版)2019-10-31  

						                  Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report




Nanjing Putian Telecommunications Co., Ltd.

         2019 Third Quarterly Report




                October 2019




                                                                                       1
                                    Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report




                         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.




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                                                           Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report




                             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%
(RMB)

                                                                                                                     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 (RMB)                     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%
(RMB)

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 (RMB)

Net cash flow arising from
                                               --                        --                       -174,200,790.16                  30.78%
operating activities (RMB)

Basic earnings per share
                                                      -0.074                  -100.00%                     -0.342                -302.35%
(RMB/Share)

Diluted earnings per share
                                                      -0.074                  -100.00%                     -0.342                -302.35%
(RMB/Share)

Weighted average ROE                                 -5.53%                     -3.17%                   -23.10%                  -17.72%

Items and amount of extraordinary profit (gains)/losses
√Applicable      □Not applicable
                                                                                                                                    In RMB

                                                                       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)



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                                                              Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


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. Statement of the total shareholders and shares-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



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                                                         Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


GUOTAI
JUNAN
                    Overseas
SECURITIES(H                                    2.55%           5,481,913                   0
                    corporate
ONGKONG)
LIMITED

                    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
LIMITED

                    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
LIMITED                                                                                         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


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                                                          Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


                                                                                               Domestically
Gu Jinhua                                                                            1,871,371 listed foreign            1,871,371
                                                                                               shares

                                                                                               Domestically
BOCI SECURITIES LIMITED                                                              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 whether 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 shareholders with preferred stock held and the top ten shareholdings

□Applicable          √Not applicable




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                                                           Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report




                                            Section III. Important events

I. Particular about major changes from items of main accounting statements and financial
indexes as well as reasons

√ Applicable     □Not applicable

         Items           2019-9-30 (RMB)       2018-12-31 (RMB) Changed amount (R
                                                                                         +,- (%)      Main reasons for major changes
                                                                          MB)
                             141,688,791.27       261,938,068.72       -120,249,277.45     -45.91% Account paid for procurement
Monetary 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            MB)
                               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



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                                                   Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


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




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                                                            Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


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. 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

□ 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 derivatives investment

□ Applicable    √ Not applicable
The Company had no derivatives investment in Period.


VII. Registration form for receiving research, communication and interview 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.



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                                                         Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


IX. Non-operational 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.




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                                                      Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report




                                          Section IV. Financial Statement

I. Financial statement

1. Consolidated Balance Sheet

Prepared by Nanjing Putian Telecommunications Co., Ltd.
                                                                                                                     In RMB

                    Item                                  2019-9-30                             2018-12-31

Current assets:

     Monetary funds                                                   141,688,791.27                         261,938,068.72

     Settlement provisions

     Capital lent

     Tradable financial assets

     Financial assets measured by fair
value and with variation reckoned into
current gains/losses

     Derivative financial assets

     Note receivable                                                   33,660,917.60                          46,475,656.01

     Account receivable                                               939,330,525.77                         941,068,459.35

     Receivable financing

     Accounts paid in advance                                          32,143,134.36                         188,848,712.69

     Insurance receivable

     Reinsurance receivables

     Contract reserve of reinsurance
receivable

     Other account receivable                                          40,271,859.67                          33,734,948.67

         Including: Interest receivable

                    Dividend receivable

     Buying back the sale of financial
assets

     Inventories                                                      256,235,777.74                         286,972,632.59

     Contractual assets

     Assets held for sale

     Non-current asset due within one


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                                            Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


year

       Other current assets                             16,168,581.50                               13,497,540.69

Total current assets                                  1,459,499,587.91                           1,772,536,018.72

Non-current assets:

       Loans and payments on behalf

       Debt investment

       Finance asset available for sales                                                               741,953.00

       Other debt investment

       Held-to-maturity investment

       Long-term account receivable

       Long-term equity investment                     181,618,438.63                             183,244,080.23

       Investment in other equity
                                                           741,953.00
instrument

       Other non-current financial assets

       Investment real estate                             8,006,993.16                               8,397,113.98

       Fixed assets                                    108,499,135.27                              112,504,807.11

       Construction in progress                         17,366,462.65                                9,472,383.76

       Productive biological asset

       Oil and gas asset

       Right-of-use assets

       Intangible assets                                29,197,593.66                               30,285,598.77

       Expense on Research and
Development

       Goodwill

       Long-term expenses to be
                                                          3,109,646.79                               3,562,336.84
apportioned

       Deferred income tax asset

       Other non-current asset

Total non-current asset                                348,540,223.16                             348,208,273.69

Total assets                                          1,808,039,811.07                           2,120,744,292.41

Current liabilities:

       Short-term loans                                462,901,567.72                             445,010,000.00

       Loan from central bank

       Capital borrowed

       Tradable financial liability



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                                            Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


     Financial liability measured by fair
value and with variation reckoned into
current gains/losses

     Derivative financial liability

     Note payable                                       96,190,328.40                               84,374,916.99

     Account payable                                   699,582,470.84                             743,028,953.62

     Accounts received in advance                       23,954,615.81                             259,545,648.66

     Contractual liability

     Selling financial asset of
repurchase

     Absorbing deposit and inter-bank
deposit

     Security trading of agency

     Security sales of agency

     Wage payable                                       18,014,505.48                               21,132,336.19

     Taxes payable                                        2,494,979.34                              17,230,159.02

     Other account payable                              49,780,012.01                               55,128,492.65

          Including: Interest payable                      396,333.33                                  454,333.33

                     Dividend payable                     2,018,213.38                               2,018,213.38

     Commission charge and
commission payable

     Reinsurance payable

     Liability held for sale

     Non-current liabilities due within
one year

     Other current liabilities

Total current liabilities                             1,352,918,479.60                           1,625,450,507.13

Non-current liabilities:

     Insurance contract reserve

     Long-term loans

     Bonds payable

          Including: Preferred stock

                     Perpetual capital
securities

     Lease liability

     Long-term account payable                          26,315,789.49


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                                                      Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


     Long-term wages payable

     Accrual liability

     Deferred income                                                6,004,873.00                               7,296,315.00

     Deferred income tax liabilities

     Other non-current liabilities

Total non-current liabilities                                      32,320,662.49                               7,296,315.00

Total liabilities                                               1,385,239,142.09                           1,632,746,822.13

Owner’s equity:

     Share capital                                                215,000,000.00                             215,000,000.00

     Other equity instrument

        Including: Preferred stock

                     Perpetual capital
securities

     Capital public reserve                                       185,374,533.85                             185,374,533.85

     Less: Inventory shares

     Other comprehensive income                                     -4,947,638.78                             -4,947,588.58

     Reasonable reserve

     Surplus public reserve                                           589,559.77                                 589,559.77

     Provision of general risk

     Retained profit                                              -114,288,504.76                            -40,726,776.80

Total owner’ s equity attributable to
                                                                  281,727,950.08                             355,289,728.24
parent company

     Minority interests                                           141,072,718.90                             132,707,742.04

Total owner’ s equity                                            422,800,668.98                             487,997,470.28

Total liabilities and owner’ s equity                          1,808,039,811.07                           2,120,744,292.41


Legal representative: Wang Wenkui


Person in charger of accounting works: Wang Huailin


Person in charge of accounting organ: Wang Huailin


2. Balance Sheet of Parent Company

                                                                                                                     In RMB

                    Item                              2019-9-30                                 2018-12-31

Current assets:


                                                                                                                          14
                                           Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


     Monetary funds                                    86,598,168.84                               80,553,208.65

     Tradable financial assets

     Financial assets measured by fair
value and with variation reckoned into
current gains/losses

     Derivative financial assets

     Note receivable                                   12,294,343.98                                6,620,178.00

     Account receivable                               519,970,462.38                             586,635,878.62

     Receivable financing

     Accounts paid in advance                            7,803,837.06                            155,717,638.43

     Other account receivable                          31,764,192.08                               31,077,389.58

       Including: Interest receivable

                    Dividend receivable

     Inventories                                      105,089,637.14                              143,432,315.11

     Contractual assets

     Assets held for sale

     Non-current assets maturing within
one year

     Other current assets                                5,776,997.19                               6,222,172.75

Total current assets                                  769,297,638.67                            1,010,258,781.14

Non-current assets:

     Debt investment

     Available-for-sale financial assets                                                              741,953.00

     Other debt investment

     Held-to-maturity investments

     Long-term receivables

     Long-term equity investments                     332,926,189.27                             333,367,967.90

     Investment in other equity
                                                          741,953.00
instrument

     Other non-current financial assets

     Investment real estate

     Fixed assets                                      47,712,149.88                               50,769,872.87

     Construction in progress                            5,984,113.43                               5,839,892.88

     Productive biological assets

     Oil and natural gas assets



                                                                                                               15
                                            Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


     Right-of-use assets

     Intangible assets                                   11,737,592.29                              12,305,246.69

     Research and development costs

     Goodwill

     Long-term deferred expenses                          3,055,872.79                               3,403,376.01

     Deferred income tax assets

     Other non-current assets

Total non-current assets                               402,157,870.66                             406,428,309.35

Total assets                                          1,171,455,509.33                           1,416,687,090.49

Current liabilities:

     Short-term borrowings                             382,901,567.72                             355,000,000.00

     Tradable financial liability

     Financial liability measured by fair
value and with variation reckoned into
current gains/losses

     Derivative financial liability

     Notes payable                                      95,817,840.05                               80,759,989.55

     Account payable                                   325,561,735.86                             340,405,588.53

     Accounts received in advance                         4,072,334.23                            227,951,168.81

     Contractual liability

     Wage payable                                         8,874,942.68                               7,854,213.23

     Taxes payable                                          -93,008.05                               8,674,579.20

     Other accounts payable                            197,803,079.59                             187,172,612.82

        Including: Interest payable                        396,333.33

                       Dividend payable

     Liability held for sale

     Non-current liabilities due within
one year

     Other current liabilities

Total current liabilities                             1,014,938,492.08                           1,207,818,152.14

Non-current liabilities:

     Long-term loans

     Bonds payable

        Including: preferred stock

                       Perpetual capital


                                                                                                                16
                                                Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


securities

     Lease liability

     Long-term account payable                               26,315,789.49

     Long term employee compensation
payable

     Accrued liabilities

     Deferred income                                             1,000,000.00                               1,000,000.00

     Deferred income tax liabilities

     Other non-current liabilities

Total non-current liabilities                                27,315,789.49                                  1,000,000.00

Total liabilities                                         1,042,254,281.57                           1,208,818,152.14

Owners’ equity:

     Share capital                                          215,000,000.00                               215,000,000.00

     Other equity instrument

        Including: preferred stock

                     Perpetual capital
securities

     Capital public reserve                                 172,417,299.81                               172,417,299.81

     Less: Inventory shares

     Other comprehensive income

     Special reserve

     Surplus reserve                                              589,559.76                                 589,559.76

     Retained profit                                       -258,805,631.81                               -180,137,921.22

Total owner’s equity                                       129,201,227.76                               207,868,938.35

Total liabilities and owner’s equity                     1,171,455,509.33                           1,416,687,090.49


3. Consolidated Profit Statement (the period)

                                                                                                                 In RMB

                     Item                       Current Period                             Last Period

I. Total operating income                                   277,519,139.93                               445,518,808.43

     Including: Operating income                            277,519,139.93                               445,518,808.43

              Interest income

              Insurance gained

              Commission charge and
commission income


                                                                                                                      17
                                                  Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


II. Total operating cost                                      290,840,607.90                            451,010,908.82

      Including: Operating cost                               217,793,388.10                            365,244,189.15

               Interest expense

               Commission charge and
commission expense

      Cash surrender value

      Net amount of expense of
compensation

      Net amount of withdrawal of
insurance contract reserve

      Bonus expense of guarantee slip

               Reinsurance expense

               Tax and extras                                   1,479,817.40                               1,932,774.55

               Sales expense                                   30,816,177.32                              37,646,375.59

               Administrative expense                          17,671,873.14                              20,948,595.48

               R&D expense                                     14,871,137.85                              18,962,492.62

               Financial expense                                8,208,214.09                               6,276,481.43

                     Including: Interest
                                                               10,155,341.90                               6,654,462.22
expenses

                                Interest income                -1,644,355.60                                 405,484.76

      Add: other income                                          -574,917.29                               1,503,777.90

            Investment income (Loss is
                                                                      451.53                                 -74,133.69
listed with “-”)

            Including: Investment income
                                                                      451.53                                 -74,133.69
on affiliated company and joint venture

                     The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)

            Exchange income (Loss is
listed with “-”)

            Net exposure hedging income
(Loss is listed with “-”)

            Income from change of fair
value (Loss is listed with “-”)

            Loss of credit impairment
                                                                  743,808.60
(Loss is listed with “-”)
            Losses of devaluation of asset
                                                                                                             656,223.89
(Loss is listed with “-”)


                                                                                                                      18
                                                 Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


              Income from assets disposal
                                                                 -46,982.80                              -1,663,890.87
(Loss is listed with “-”)

III. Operating profit (Loss is listed with
                                                             -13,199,107.93                              -5,070,123.16
“-”)

         Add: Non-operating income                             1,234,394.90                               1,149,732.72

         Less: Non-operating expense                              50,455.76                                  44,095.97

IV. Total profit (Loss is listed with “-”)                 -12,015,168.79                              -3,964,486.41

         Less: Income tax expense                               -714,264.39                                 186,886.96

V. Net profit (Net loss is listed with “-”)                -11,300,904.40                              -4,151,373.37

   (i) Classify by business continuity

         1.continuous operating net profit
                                                             -11,300,904.40                              -4,151,373.37
(net loss listed with ‘-”)

         2.termination of net profit (net loss
listed with ‘-”)

   (ii) Classify by ownership

         1.Net profit attributable to owner’s
                                                             -16,033,203.08                              -7,943,829.27
of parent company

         2.Minority shareholders’ gains and
                                                               4,732,298.68                               3,792,455.90
losses

VI. Net after-tax of other comprehensive
                                                                  72,045.56                                 136,536.55
income

   Net after-tax of other comprehensive
income attributable to owners of parent                           64,841.00                                 122,975.85
company

         (I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss

                1.Changes of the defined
benefit plans that re-measured

                2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss

                3.Change of fair value of
investment in other equity instrument

                4.Fair value change of
enterprise's credit risk

                5. Other

          (ii) Other comprehensive income                         64,841.00                                 122,975.85


                                                                                                                     19
                                                        Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


items which will be reclassified
subsequently to profit or loss

               1.Other comprehensive
income under equity method that can
transfer to gain/loss

               2.Change of fair value of
other debt investment

               3.gain/loss of fair value
changes for available-for-sale financial
assets

               4.Amount of financial assets
re-classify to other comprehensive
income

               5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset

               6.Credit impairment
provision for other debt investment

               7.Cash flow hedging reserve

               8.Translation differences
arising on translation of foreign currency                                64,841.00                                 122,975.85
financial statements

               9.Other

  Net after-tax of other comprehensive
income attributable to minority                                            7,204.56                                   13,560.70
shareholders

VII. Total comprehensive income                                      -11,228,858.84                               -4,014,836.82

        Total comprehensive income
                                                                     -15,968,362.08                               -7,820,946.37
attributable to owners of parent Company

        Total comprehensive income
                                                                       4,739,503.24                                3,806,109.55
attributable to minority shareholders

VIII. Earnings per share:

        (i) Basic earnings per share                                         -0.074                                      -0.037

        (ii) Diluted earnings per share                                      -0.074                                      -0.037

Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party.


Legal representative: Wang Wenkui



                                                                                                                              20
                                                       Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


Person in charger of accounting works: Wang Huailin


Person in charge of accounting organ: Wang Huailin


4. Profit Statement of Parent Company (the period)

                                                                                                                       In RMB

                        Item                          Current Period                              Last Period

I. Operating income                                                    55,016,398.63                            212,300,710.49

         Less: Operating cost                                          46,017,065.17                            185,380,547.20

             Taxes and surcharge                                         339,926.58                               1,218,648.39

             Sales expenses                                            12,227,904.89                             15,127,198.27

             Administration expenses                                    8,590,057.27                              9,686,875.92

             R&D expenses                                               3,405,244.12                              5,107,630.12

             Financial expenses                                         7,055,637.40                              5,692,165.34

                     Including: interest
                                                                       10,781,415.05                              5,799,507.17
expenses

                            Interest income                               63,737.62                                163,300.52

         Add: other income

             Investment income (Loss is
                                                                             451.53                               4,902,566.31
listed with “-”)

             Including: Investment income
                                                                             451.53                                 -74,133.69
on affiliated Company and joint venture

                     The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)

             Net exposure hedging income
(Loss is listed with “-”)

             Changing income of fair
value (Loss is listed with “-”)

             Loss of credit impairment
                                                                       -2,496,905.43
(Loss is listed with “-”)
             Losses of devaluation of asset
(Loss is listed with “-”)

             Income on disposal of assets
                                                                          -48,767.77                             -1,594,623.47
(Loss is listed with “-”)

II. Operating profit (Loss is listed with
                                                                   -25,164,658.47                                -6,604,411.91
“-”)



                                                                                                                            21
                                                Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


         Add: Non-operating income                               26,919.61                                 226,247.94

         Less: Non-operating expense                             50,000.00                                   4,298.87

III. Total Profit (Loss is listed with “-”)               -25,187,738.86                              -6,382,462.84

         Less: Income tax

IV. Net profit (Net loss is listed with
                                                            -25,187,738.86                              -6,382,462.84
“-”)

         (i)continuous operating net profit
                                                            -25,187,738.86                              -6,382,462.84
         (net loss listed with ‘-”)

         (ii) termination of net profit (net
loss listed with ‘-”)

V. Net after-tax of other comprehensive
income

         (I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss

                 1.Changes of the defined
benefit plans that re-measured

                 2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss

                 3.Change of fair value of
investment in other equity instrument

                 4.Fair value change of
enterprise's credit risk

                 5. Other

          (II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss

                 1.Other comprehensive
income under equity method that can
transfer to gain/loss

                 2.Change of fair value of
other debt investment

                 3.gain/loss of fair value
changes for available-for-sale financial
assets

                 4.Amount of financial
assets re-classify to other
comprehensive income


                                                                                                                    22
                                              Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


               5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset

               6.Credit impairment
provision for other debt investment

               7.Cash flow hedging
reserve

               8.Translation differences
arising on translation of foreign
currency financial statements

               9.Other

VI. Total comprehensive income                             -25,187,738.86                              -6,382,462.84

VII. Earnings per share:

         (i) Basic earnings per share                              -0.117                                    -0.030

        (ii) Diluted earnings per share                            -0.117                                    -0.030


5. Consolidated Profit Statement (form the year-begin to the period-end)

                                                                                                             In RMB

                      Item                    Current Period                             Last Period

I. Total operating income                                1,034,716,511.73                          1,412,369,413.38

        Including: Operating income                      1,034,716,511.73                          1,412,369,413.38

               Interest income

               Insurance gained

               Commission charge and
commission income

II. Total operating cost                                 1,105,935,444.51                          1,454,717,185.78

        Including: Operating cost                         850,889,156.17                           1,189,602,884.47

               Interest expense

               Commission charge and
commission expense

        Cash surrender value

        Net amount of expense of
compensation

        Net amount of withdrawal of
insurance contract reserve




                                                                                                                  23
                                                  Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


         Bonus expense of guarantee slip

                Reinsurance expense

                Tax and extras                                  5,973,001.08                               7,597,025.09

                Sales expense                                 109,329,639.37                             117,342,559.23

                Administrative expense                         64,931,448.81                              68,339,170.75

                R&D expense                                    50,780,178.34                              55,360,599.42

                Financial expense                              24,032,020.74                              16,474,946.82

                     Including: Interest
                                                               22,451,433.76                              18,280,015.84
expenses

                                Interest income                   756,066.93                               2,097,501.83

         Add: other income                                      5,431,925.01                               7,303,121.76

             Investment income (Loss is
                                                                 -441,778.63                                 333,659.41
listed with “-”)

             Including: Investment income
                                                                 -441,778.63                                 333,659.41
on affiliated company and joint venture

                     The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)

             Exchange income (Loss is
listed with “-”)

             Net exposure hedging income
(Loss is listed with “-”)

             Income from change of fair
value (Loss is listed with “-”)

             Loss of credit impairment
                                                                   75,296.00
(Loss is listed with “-”)
             Losses of devaluation of asset
                                                                                                          -2,374,559.27
(Loss is listed with “-”)

             Income from assets disposal
                                                                   51,857.87                              28,492,927.93
(Loss is listed with “-”)

III. Operating profit (Loss is listed with
                                                              -66,101,632.53                              -8,592,622.57
“-”)

         Add: Non-operating income                              2,546,510.07                               3,975,586.87

         Less: Non-operating expense                              289,107.80                                 352,681.97

IV. Total profit (Loss is listed with “-”)                  -63,844,230.26                              -4,969,717.67

         Less: Income tax expense                               1,352,515.26                               1,833,004.66

V. Net profit (Net loss is listed with “-”)                 -65,196,745.52                              -6,802,722.33




                                                                                                                      24
                                              Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


   (i) Classify by business continuity

      1.continuous operating net profit
                                                          -65,196,745.52                              -6,802,722.33
(net loss listed with ‘-”)

      2.termination of net profit (net loss
listed with ‘-”)

   (ii) Classify by ownership

      1.Net profit attributable to owner’s
                                                          -73,561,727.96                             -18,365,534.87
of parent company

      2.Minority shareholders’ gains and
                                                            8,364,982.44                              11,562,812.54
losses

VI. Net after-tax of other comprehensive
                                                                  -55.77                                     929.55
income

   Net after-tax of other comprehensive
income attributable to owners of parent                           -50.20                                     929.55
company

      (I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss

               1.Changes of the defined
benefit plans that re-measured

               2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss

               3.Change of fair value of
investment in other equity instrument

               4.Fair value change of
enterprise's credit risk

               5. Other

         (ii) Other comprehensive income
items which will be reclassified                                  -50.20                                     929.55
subsequently to profit or loss

               1.Other comprehensive
income under equity method that can
transfer to gain/loss

               2.Change of fair value of
other debt investment

               3.gain/loss of fair value
changes for available-for-sale financial
assets


                                                                                                                  25
                                                        Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


               4.Amount of financial assets
re-classify to other comprehensive
income

               5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset

               6.Credit impairment
provision for other debt investment

               7.Cash flow hedging reserve

               8.Translation differences
arising on translation of foreign currency                                     -50.20                                    929.55
financial statements

               9.Other

  Net after-tax of other comprehensive
income attributable to minority                                                 -5.57
shareholders

VII. Total comprehensive income                                        -65,196,801.29                              -6,801,792.78

        Total comprehensive income
                                                                       -73,561,778.16                             -18,364,698.27
attributable to owners of parent Company

        Total comprehensive income
                                                                        8,364,976.87                               11,562,905.49
attributable to minority shareholders

VIII. Earnings per share:

        (i) Basic earnings per share                                           -0.342                                     -0.085

        (ii) Diluted earnings per share                                        -0.342                                     -0.085

Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party.


Legal representative: Wang Wenkui


Person in charger of accounting works: Wang Huailin


Person in charge of accounting organ: Wang Huailin


6. Profit Statement of Parent Company (form the year-begin to the period-end)

                                                                                                                         In RMB

                     Item                             Current Period                                Last Period

I. Operating income                                                 396,428,217.21                                710,107,677.73




                                                                                                                              26
                                                Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


         Less: Operating cost                              367,175,356.61                             646,396,562.59

              Taxes and surcharge                             1,313,334.89                               3,407,052.75

              Sales expenses                                40,603,458.09                               48,750,963.33

              Administration expenses                       33,017,518.85                               32,374,205.31

              R&D expenses                                  12,053,250.85                               15,267,815.70

              Financial expenses                            22,010,410.75                               15,980,393.39

                     Including: interest
                                                            20,650,023.56                               16,156,553.75
expenses

                             Interest income                   545,584.57                                  304,706.64

         Add: other income                                     800,000.00                                  876,429.06

              Investment income (Loss is
                                                               -441,778.63                               5,310,359.41
listed with “-”)

              Including: Investment income
                                                               -441,778.63                                 333,659.41
on affiliated Company and joint venture

                     The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)

              Net exposure hedging income
(Loss is listed with “-”)

              Changing income of fair
value (Loss is listed with “-”)

              Loss of credit impairment
                                                                 65,296.00
(Loss is listed with “-”)
              Losses of devaluation of asset
                                                                                                        -1,674,589.82
(Loss is listed with “-”)

              Income on disposal of assets
                                                                -40,345.94                              17,314,391.94
(Loss is listed with “-”)

II. Operating profit (Loss is listed with
                                                            -79,361,941.40                             -30,242,724.75
“-”)

         Add: Non-operating income                             981,722.20                                2,220,793.77

         Less: Non-operating expense                           287,491.39                                  215,232.33

III. Total Profit (Loss is listed with “-”)               -78,667,710.59                             -28,237,163.31

         Less: Income tax

IV. Net profit (Net loss is listed with
                                                            -78,667,710.59                             -28,237,163.31
“-”)

         (i)continuous operating net profit
                                                            -78,667,710.59                             -28,237,163.31
         (net loss listed with ‘-”)



                                                                                                                    27
                                              Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


        (ii) termination of net profit (net
loss listed with ‘-”)

V. Net after-tax of other comprehensive
income

        (I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss

                1.Changes of the defined
benefit plans that re-measured

                2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss

                3.Change of fair value of
investment in other equity instrument

                4.Fair value change of
enterprise's credit risk

                5. Other

         (II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss

                1.Other comprehensive
income under equity method that can
transfer to gain/loss

                2.Change of fair value of
other debt investment

                3.gain/loss of fair value
changes for available-for-sale financial
assets

                4.Amount of financial
assets re-classify to other
comprehensive income

                5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset

                6.Credit impairment
provision for other debt investment

                7.Cash flow hedging
reserve



                                                                                                                  28
                                              Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


              8.Translation differences
arising on translation of foreign
currency financial statements

              9.Other

VI. Total comprehensive income                            -78,667,710.59                               -28,237,163.31

VII. Earnings per share:

        (i) Basic earnings per share                                -0.366                                     -0.131

       (ii) Diluted earnings per share                              -0.366                                     -0.131


7. Consolidated Cash Flow Statement (form the year-begin to the period-end)

                                                                                                              In RMB

                    Item                     Current Period                              Last Period

I. Cash flows arising from operating
activities:

       Cash received from selling
commodities and providing labor                           956,964,700.46                           1,286,615,100.29
services

       Net increase of customer deposit
and inter-bank deposit

        Net increase of loan from central
bank

       Net increase of capital borrowed
from other financial institution

       Cash received from original
insurance contract fee

       Net cash received from reinsurance
business

       Net increase of insured savings
and investment

       Cash received from interest,
commission charge and commission

       Net increase of capital borrowed

       Net increase of returned business
capital

       Net cash received by agents in sale
and purchase of securities

       Write-back of tax received                             7,497,786.72                              4,289,615.88



                                                                                                                   29
                                             Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


       Other cash received concerning
                                                         40,017,543.26                               27,943,664.20
operating activities

Subtotal of cash inflow arising from
                                                       1,004,480,030.44                           1,318,848,380.37
operating activities

       Cash paid for purchasing
commodities and receiving labor                         828,366,156.39                            1,178,397,147.73
service

       Net increase of customer loans and
advances

       Net increase of deposits in central
bank and inter-bank

       Cash paid for original insurance
contract compensation

       Net increase of capital lent

       Cash paid for interest, commission
charge and commission

         Cash paid for bonus of guarantee
slip

       Cash paid to/for staff and workers               176,788,081.38                             185,026,140.83

       Taxes paid                                        60,194,143.85                               63,321,561.08

       Other cash paid concerning
                                                        113,332,438.98                              143,779,119.24
operating activities

Subtotal of cash outflow arising from
                                                       1,178,680,820.60                           1,570,523,968.88
operating activities

Net cash flows arising from operating
                                                       -174,200,790.16                             -251,675,588.51
activities

II. Cash flows arising from investing
activities:

       Cash received from recovering
                                                           1,183,862.97
investment

       Cash received from investment
                                                                                                        197,567.20
income

       Net cash received from disposal of
fixed, intangible and other long-term                       432,160.00                               35,423,858.32
assets

       Net cash received from disposal of
subsidiaries and other units

       Other cash received concerning



                                                                                                                 30
                                          Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


investing activities

Subtotal of cash inflow from investing
                                                        1,616,022.97                              35,621,425.52
activities

     Cash paid for purchasing fixed,
                                                        8,204,168.77                              11,483,207.44
intangible and other long-term assets

     Cash paid for investment

     Net increase of mortgaged loans

     Net cash received from
subsidiaries and other units obtained

     Other cash paid concerning
investing activities

Subtotal of cash outflow from investing
                                                        8,204,168.77                              11,483,207.44
activities

Net cash flows arising from investing
                                                       -6,588,145.80                              24,138,218.08
activities

III. Cash flows arising from financing
activities

     Cash received from absorbing
investment

      Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries

     Cash received from loans                        323,019,010.00                             406,510,000.00

     Other cash received concerning
                                                      58,561,263.89
financing activities

Subtotal of cash inflow from financing
                                                     381,580,273.89                             406,510,000.00
activities

     Cash paid for settling debts                    283,632,574.54                             385,550,000.00

     Cash paid for dividend and profit
                                                      23,459,616.76                               23,705,163.86
distributing or interest paying

     Including: Dividend and profit of
minority shareholder paid by                                                                       5,623,300.00
subsidiaries

     Other cash paid concerning
                                                      20,104,291.54
financing activities

Subtotal of cash outflow from financing
                                                     327,196,482.84                             409,255,163.86
activities

Net cash flows arising from financing                 54,383,791.05                               -2,745,163.86



                                                                                                              31
                                            Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


activities

IV. Influence on cash and cash
equivalents due to fluctuation in                             104,777.47                                  -92,357.05
exchange rate

V. Net increase of cash and cash
                                                       -126,300,367.44                               -230,374,891.34
equivalents

     Add: Balance of cash and cash
                                                        201,369,317.42                               311,331,284.54
equivalents at the period -begin

VI. Balance of cash and cash
                                                            75,068,949.98                             80,956,393.20
equivalents at the period -end


8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)

                                                                                                             In RMB

                  Item                     Current Period                              Last Period

I. Cash flows arising from operating
activities:

     Cash received from selling
commodities and providing labor                         273,933,042.75                               474,185,803.43
services

     Write-back of tax received                                                                          226,972.07

     Other cash received concerning
                                                            32,841,184.43                            115,782,784.40
operating activities

Subtotal of cash inflow arising from
                                                        306,774,227.18                               590,195,559.90
operating activities

     Cash paid for purchasing
commodities and receiving labor                         202,505,864.89                               509,750,001.16
service

     Cash paid to/for staff and workers                     73,169,249.50                             76,138,859.61

     Taxes paid                                             17,938,872.42                             17,207,064.21

     Other cash paid concerning
                                                            84,037,131.12                             73,192,989.93
operating activities

Subtotal of cash outflow arising from
                                                        377,651,117.93                               676,288,914.91
operating activities

Net cash flows arising from operating
                                                        -70,876,890.75                                -86,093,355.01
activities

II. Cash flows arising from investing
activities:

     Cash received from recovering


                                                                                                                  32
                                          Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


investment

     Cash received from investment
                                                         400,000.00                                  197,567.20
income

     Net cash received from disposal of
fixed, intangible and other long-term                      75,110.00                              21,892,918.00
assets

     Net cash received from disposal of
subsidiaries and other units

     Other cash received concerning
investing activities

Subtotal of cash inflow from investing
                                                         475,110.00                               22,090,485.20
activities

     Cash paid for purchasing fixed,
                                                        1,002,480.46                               7,474,536.72
intangible and other long-term assets

     Cash paid for investment

     Net cash received from
subsidiaries and other units obtained

     Other cash paid concerning
investing activities

Subtotal of cash outflow from investing
                                                        1,002,480.46                               7,474,536.72
activities

Net cash flows arising from investing
                                                         -527,370.46                              14,615,948.48
activities

III. Cash flows arising from financing
activities:

     Cash received from absorbing
investment

     Cash received from loans                        223,019,010.00                             312,000,000.00

     Other cash received concerning
                                                      58,561,263.89
financing activities

Subtotal of cash inflow from financing
                                                     281,580,273.89                             312,000,000.00
activities

     Cash paid for settling debts                    173,622,574.54                             319,000,000.00

     Cash paid for dividend and profit
                                                      18,485,620.63                               14,749,795.66
distributing or interest paying

     Other cash paid concerning
                                                      20,000,000.00
financing activities

Subtotal of cash outflow from financing              212,108,195.17                             333,749,795.66



                                                                                                              33
                                                     Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


activities

Net cash flows arising from financing
                                                                 69,472,078.72                              -21,749,795.66
activities

IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate

V. Net increase of cash and cash
                                                                  -1,932,182.49                             -93,227,202.19
equivalents

     Add: Balance of cash and cash
                                                                 23,812,669.19                              110,026,464.66
equivalents at the period -begin

VI. Balance of cash and cash
                                                                 21,880,486.70                               16,799,262.47
equivalents at the period -end


II. Financial statement adjustment

1. Relevant items of the financial statement at beginning of the year when implementing the new financial
instrument standards, new revenue standards or new leasing standards since 2019

√ Applicable □ Not applicable

Consolidated Balance Sheet
                                                                                                                    In RMB

              Item                      2018-12-31                   2019-01-01                      Adjustment

Current assets:

     Monetary funds                          261,938,068.72                261,938,068.72

     Settlement provisions

     Capital lent

     Tradable financial assets

     Financial assets
measured by fair value and
with variation reckoned into
current gains/losses

     Derivative financial
assets

     Note receivable                          46,475,656.01                  46,475,656.01

     Account receivable                      941,068,459.35                941,068,459.35

     Receivable financing

     Accounts paid in
                                             188,848,712.69                188,848,712.69
advance



                                                                                                                         34
                                         Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


     Insurance receivable

     Reinsurance receivables

     Contract reserve of
reinsurance receivable

     Other account
                                 33,734,948.67                   33,734,948.67
receivable

         Including: Interest
receivable

                   Dividend
receivable

     Buying back the sale of
financial assets

     Inventories                286,972,632.59                 286,972,632.59

     Contractual assets

     Assets held for sale

     Non-current asset due
within one year

     Other current assets        13,497,540.69                   13,497,540.69

Total current assets           1,772,536,018.72               1,772,536,018.72

Non-current assets:

     Loans and payments on
behalf

     Debt investment

     Finance asset available
                                    741,953.00                                                     -741,953.00
for sales

     Other debt investment

     Held-to-maturity
investment

     Long-term account
receivable

     Long-term equity
                                183,244,080.23                 183,244,080.23
investment

     Investment in other
                                                                   741,953.00                       741,953.00
equity instrument

     Other non-current
financial assets

     Investment real estate        8,397,113.98                   8,397,113.98



                                                                                                             35
                                               Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


        Fixed assets                  112,504,807.11                  112,504,807.11

        Construction in progress        9,472,383.76                    9,472,383.76

        Productive biological
asset

        Oil and gas asset

        Right-of-use assets

        Intangible assets              30,285,598.77                   30,285,598.77

        Expense on Research
and Development

        Goodwill

        Long-term expenses to
                                        3,562,336.84                    3,562,336.84
be apportioned

        Deferred income tax
asset

        Other non-current asset

Total non-current asset               348,208,273.69                 348,208,273.69

Total assets                         2,120,744,292.41               2,120,744,292.41

Current liabilities:

        Short-term loans              445,010,000.00                 445,010,000.00

        Loan from central bank

        Capital borrowed

        Tradable financial
liability

        Financial liability
measured by fair value and
with variation reckoned into
current gains/losses

        Derivative financial
liability

        Note payable                   84,374,916.99                   84,374,916.99

        Account payable               743,028,953.62                 743,028,953.62

        Accounts received in
                                      259,545,648.66                 259,545,648.66
advance

        Contractual liability

        Selling financial asset of
repurchase

        Absorbing deposit and


                                                                                                                   36
                                              Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


inter-bank deposit
    Security         trading   of
agency
     Security sales of agency

     Wage payable                     21,132,336.19                   21,132,336.19

     Taxes payable                    17,230,159.02                   17,230,159.02

     Other account payable            55,128,492.65                   55,128,492.65

        Including: Interest
                                         454,333.33                     454,333.33
payable

                      Dividend
                                       2,018,213.38                    2,018,213.38
payable

     Commission charge and
commission payable

     Reinsurance payable

     Liability held for sale

     Non-current liabilities
due within one year

     Other current liabilities

Total current liabilities           1,625,450,507.13               1,625,450,507.13

Non-current liabilities:
     Insurance           contract
reserve
     Long-term loans

     Bonds payable

        Including: Preferred
stock

                      Perpetual
capital securities

     Lease liability

     Long-term account
payable

     Long-term wages
payable

     Accrual liability

     Deferred income                   7,296,315.00                    7,296,315.00

     Deferred income tax
liabilities

     Other non-current


                                                                                                                  37
                                                Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


liabilities

Total non-current liabilities             7,296,315.00                   7,296,315.00

Total liabilities                     1,632,746,822.13               1,632,746,822.13

Owner’s equity:

     Share capital                     215,000,000.00                 215,000,000.00

     Other equity instrument

         Including: Preferred
stock

                     Perpetual
capital securities

     Capital public reserve            185,374,533.85                 185,374,533.85

     Less: Inventory shares

     Other comprehensive
                                         -4,947,588.58                  -4,947,588.58
income

     Reasonable reserve

     Surplus public reserve                589,559.77                     589,559.77

     Provision of general risk

     Retained profit                    -40,726,776.80                 -40,726,776.80

Total owner’ s equity
attributable to parent                 355,289,728.24                 355,289,728.24
company

     Minority interests                132,707,742.04                 132,707,742.04

Total owner’ s equity                 487,997,470.28                 487,997,470.28

Total liabilities and owner’ s
                                      2,120,744,292.41               2,120,744,292.41
equity

Explanation
Balance Sheet of Parent Company
                                                                                                               In RMB

              Item                2018-12-31                    2019-01-01                      Adjustment

Current assets:

     Monetary funds                     80,553,208.65                   80,553,208.65

     Tradable financial assets

     Financial assets
measured by fair value and
with variation reckoned into
current gains/losses

     Derivative financial


                                                                                                                    38
                                          Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


assets

     Note receivable               6,620,178.00                    6,620,178.00

     Account receivable          586,635,878.62                 586,635,878.62

     Receivable financing

     Accounts paid in
                                 155,717,638.43                 155,717,638.43
advance

     Other account
                                  31,077,389.58                   31,077,389.58
receivable

         Including: Interest
receivable

                    Dividend
receivable

     Inventories                 143,432,315.11                 143,432,315.11

     Contractual assets

     Assets held for sale

     Non-current assets
maturing within one year

     Other current assets          6,222,172.75                    6,222,172.75

Total current assets            1,010,258,781.14               1,010,258,781.14

Non-current assets:

     Debt investment

     Available-for-sale
                                     741,953.00                                                     -741,953.00
financial assets

     Other debt investment

     Held-to-maturity
investments

     Long-term receivables

     Long-term equity
                                 333,367,967.90                 333,367,967.90
investments

     Investment in other
                                                                    741,953.00                       741,953.00
equity instrument

     Other non-current
financial assets

     Investment real estate

     Fixed assets                 50,769,872.87                   50,769,872.87

     Construction in progress      5,839,892.88                    5,839,892.88

     Productive biological


                                                                                                              39
                                            Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


assets

     Oil and natural gas
assets

     Right-of-use assets

     Intangible assets              12,305,246.69                   12,305,246.69

     Research and
development costs

     Goodwill

     Long-term deferred
                                     3,403,376.01                    3,403,376.01
expenses

     Deferred income tax
assets

     Other non-current assets

Total non-current assets           406,428,309.35                 406,428,309.35

Total assets                      1,416,687,090.49               1,416,687,090.49

Current liabilities:

     Short-term borrowings         355,000,000.00                 355,000,000.00

     Tradable financial
liability

     Financial liability
measured by fair value and
with variation reckoned into
current gains/losses

     Derivative financial
liability

     Notes payable                  80,759,989.55                   80,759,989.55

     Account payable               340,405,588.53                 340,405,588.53

     Accounts received in
                                   227,951,168.81                 227,951,168.81
advance

     Contractual liability

     Wage payable                    7,854,213.23                    7,854,213.23

     Taxes payable                   8,674,579.20                    8,674,579.20

     Other accounts payable        187,172,612.82                 187,172,612.82

         Including: Interest
payable

                       Dividend
payable



                                                                                                                40
                                           Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


     Liability held for sale

     Non-current liabilities
due within one year

     Other current liabilities

Total current liabilities        1,207,818,152.14               1,207,818,152.14

Non-current liabilities:

     Long-term loans

     Bonds payable

         Including: preferred
stock

                     Perpetual
capital securities

     Lease liability

     Long-term account
payable

     Long term employee
compensation payable

     Accrued liabilities

     Deferred income                1,000,000.00                    1,000,000.00

     Deferred income tax
liabilities

     Other non-current
liabilities

Total non-current liabilities       1,000,000.00                    1,000,000.00

Total liabilities                1,208,818,152.14               1,208,818,152.14

Owners’ equity:

     Share capital                215,000,000.00                 215,000,000.00

     Other equity instrument

         Including: preferred
stock

                     Perpetual
capital securities

     Capital public reserve       172,417,299.81                 172,417,299.81

     Less: Inventory shares

     Other comprehensive
income




                                                                                                               41
                                                           Nanjing Putian Telecommunications Co., Ltd. 2019 Third Quarterly Report


     Special reserve

     Surplus reserve                                 589,559.76                      589,559.76

     Retained profit                            -180,137,921.22                  -180,137,921.22

Total owner’s equity                            207,868,938.35                  207,868,938.35

Total liabilities and owner’s
                                               1,416,687,090.49                 1,416,687,090.49
equity

Explanation


2. Explanation on comparative data in the early stage of retroactive adjustment while implemented the new
financial instrument standards or new leasing standards since 2019

□ Applicable   √ Not applicable


III. Audit report

Whether the 3rd quarterly report has been audited or not
□Yes √ No
The 3rd quarterly report of the Company has not been audited.


                                                                                                   Board of Directors of

                                                                                    Nanjing Putian Telecommunications Co., Ltd.
                                                                                                        31 October 2019




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