Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report October 2020 1 Nanjing Putian Telecommunications Co., Ltd. 2020 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. 2 Nanjing Putian Telecommunications Co., Ltd. 2020 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) 1,474,870,353.18 1,652,005,519.44 -10.72% Net assets attributable to shareholders of listed company 109,496,218.17 169,543,106.29 -35.42% (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) 257,967,139.46 -7.05% 663,139,943.08 -35.91% Net profit attributable to shareholders of the listed company -1,190,034.23 92.58% -60,046,888.26 18.37% (RMB) Net profit attributable to shareholders of the listed company -5,633,894.62 67.86% -69,241,389.77 9.36% after deducting non-recurring gains and losses (RMB) Net cash flow arising from 6,656,073.35 165.88% 24,308,791.38 113.95% operating activities (RMB) Basic earnings per share -0.01 85.71% -0.28 17.65% (RMB/Share) Diluted earnings per share -0.01 85.71% -0.28 17.65% (RMB/Share) Weighted average ROE -1.09% 4.44% -43.04% -19.94% 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 6,051,161.27 write-off that accrued for impairment of assets) 3 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to 4,120,379.93 national standards, which are closely relevant to enterprise’s business) Other non-operating income and expenditure except for the 481,262.65 aforementioned items Less: impact on income tax 594,009.68 Impact on minority shareholders’ equity (post-tax) 864,292.66 Total 9,194,501.51 -- 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 8,534 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 2.97% 6,386,820 0 Securities (Hong corporate Kong) co., LTD GUOTAI Overseas 2.50% 5,379,114 0 JUNAN 4 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report SECURITIES(H 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 Domestic nature Gu Jinhua 0.87% 1,871,371 0 person Guosen Securities (HK) Brokerage Overseas 0.85% 1,828,682 0 Company corporate Limited BOCI Overseas SECURITIES 0.59% 1,266,945 0 corporate LIMITED Domestic nature Xiang Yan 0.42% 905,602 0 person Domestic nature Zheng Hongquan 0.42% 905,600 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 6,386,820 listed foreign 6,386,820 (Hong Kong) co., LTD shares GUOTAI JUNAN Domestically SECURITIES(HONGKONG) 5,379,114 listed foreign 5,379,114 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 Gu Jinhua 1,871,371 listed foreign 1,871,371 shares Domestically Guosen Securities (HK) Brokerage 1,828,682 1,828,682 listed foreign 5 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Company Limited shares Domestically BOCI SECURITIES LIMITED 1,266,945 listed foreign 1,266,945 shares Domestically Xiang Yan 905,602 listed foreign 905,602 shares Domestically Zheng Hongquan 905,600 listed foreign 905,600 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 6 Nanjing Putian Telecommunications Co., Ltd. 2020 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 September 30, December 31, 2019 / Change ratio Main reasons for changes Changed amount (R 2020/January-Septe January to September MB) mber 2020 (yuan) 2019 (yuan) 142,775,811.83 261,270,033.28 -118,494,221.45 -45.35% Paying purchase of receivable in the Monetary fund Period due to the need of operation. Bill receivable 10,319,290.58 59,653,053.58 -49,333,763.00 -82.70% Transfer the endorsement of trade bill in the Period. Receivable financing 100,000.00 3,821,550.77 -3,721,550.77 -97.38% Transfer the endorsement of bank acceptance in the Period. Stock 280,227,113.12 209,397,286.17 70,829,826.95 33.83% During the Period, some of the projects are not approach the condition of revenue recognition, delivery of goods increased; and stock up for later phases. Other current assets 16,127,655.17 11,610,245.99 4,517,409.18 38.91% Input tax of the VAT to be deducted increased. Construction in 19,286,278.58 13,048,701.59 6,237,576.99 47.80% Investment for the construction progress project from subsidiary. Total owner's equity 109,496,218.17 169,543,106.29 -60,046,888.12 -35.42% Loss in the Period, and the owners’ attributable to the equity declined correspondingly. parent company Operating income 663,139,943.08 1,034,716,511.73 -371,576,568.65 -35.91% During the reporting period, the COVID-19 and macro market environment have certain adverse effect to the Company’s business development, furthermore, in order to adapt to the market change, the Company adjust the industrial structure actively, sales revenue has a y-o-y declined in the Period. Operation costs 531,912,844.26 850,889,156.17 -318,976,311.91 -37.49% Operation revenue declined and with the strong controls in costs, operation costs declined correspondingly. Management 40,739,708.08 64,931,448.81 -24,191,740.73 -37.26% The Company put more efforts on 7 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report expenses the internal management in the Period, and strives to reduce the management expenses. R&D expenses 34,351,953.11 50,780,178.34 -16,428,225.23 -32.35% Affected by the COVID-19, resumption of work delayed and the R&D expenses reduced accordingly. Other income 7,928,748.71 5,431,925.01 2,496,823.70 45.97% Revenue from government subsidy increased on a y-o-y basis. Asset impairment -2,207,163.50 -2,207,163.50 100.00% Loss of inventory impairment loss increased on a y-o-y basis. Credit impairment -5,272,892.33 75,296.00 -5,348,188.33 -7102.89% Impairment loss of receivable loss increased on a y-o-y basis. Asset disposal 10,958,898.88 51,857.87 10,907,041.01 21032.57% Revenue from assets disposal income increased on a y-o-y basis. Operating profit -45,021,782.28 -66,101,632.53 21,079,850.25 31.89% During the reporting period, sales revenue declined from a year earlier, however, due to the strong internal management and cost controlling, periodic expenses declined on a y-o-y basis; earnings from assets disposal increased on a y-o-y basis. The total profit -41,084,538.04 -63,844,230.26 22,759,692.22 35.65% During the reporting period, periodic expenses declined on a y-o-y basis due to the strong internal management and operation cost control; earnings from assets disposal increased on a y-o-y basis. 24,308,791.38 -174,200,790.16 198,509,581.54 113.95% Face of the adverse impact of epidemic, the Company increased the collection of payment, controls Net cash flow arising the operation risks and strictly from operation controlled all expenses at the same activities time to reduce costs and increase the efficiency, the net cash flow from operation increased on a y-o-y basis. Subtotal cash inflow 23,424,811.00 1,616,022.97 21,808,788.03 1349.53% Cash received from asset disposal in from investment the Period increased on a y-o-y activities basis. Net cash flow arising 16,227,615.55 -6,588,145.80 22,815,761.35 346.32% Cash received from asset disposal in from investment the Period increased on a y-o-y 8 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report activities basis. Subtotal cash inflow 172,737,283.33 381,580,273.89 -208,842,990.56 -54.73% Some of the loans repayment is due from financing in the Period. activities Net cash flow arising -148,103,581.55 54,383,791.05 -202,487,372.60 -372.33% Some of the loans repayment is due from financing in the Period. activities II. Progress and influence of the main events as well as solution analysis specification √ Applicable □Not applicable During the reporting period, the Company plans to transfer the 49.64% equity of stock-jointly enterprise-Putian Hi-Tech Industry Co., Ltd through listing, and the land property locates on No.1 Putian Road. And the plan of major assets reorganization released on 14 October 2020, found more in relevant notice. Information index for temporary report Overview Date for disclosure disclosure Suggestive announcement on plans of June 4, 2020 Juchao Website (www.cninfo.com.cn) major assets reorganization June 18, 2020 Juchao Website (www.cninfo.com.cn) July 6, 2020 Juchao Website (www.cninfo.com.cn) July 20, 2020 Juchao Website (www.cninfo.com.cn) Progress of the major assets reorganization August 3, 2020 Juchao Website (www.cninfo.com.cn) August 17, 2020 Juchao Website (www.cninfo.com.cn) August 31, 2020 Juchao Website (www.cninfo.com.cn) Progress of the major assets reorganization and adjustment of the items with September 14, 2020 Juchao Website (www.cninfo.com.cn) reorganization concerned Progress of the major assets reorganization September 28, 2020 Juchao Website (www.cninfo.com.cn) Plan for sales of major assets October 14, 2020 Juchao Website (www.cninfo.com.cn) 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 9 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period. IV. Financial asset investment 1. Particular about security investment □ Applicable √ Not applicable The Company had no security investment in Period. 2. Particulars about derivatives investment □ Applicable √ Not applicable The Company had no derivatives investment in Period. V. Progress of investment projects with raised funds □ Applicable √ Not applicable VI. Prediction of 2020 business performance Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason □ Applicable √ Not applicable VII. Major contracts for daily operations □ Applicable √ Not applicable VIII. Trust financing □ Applicable √ Not applicable The Company had no trust financing in Period. IX. Guarantee outside against the regulation □Applicable √Not applicable The Company had no guarantee outside against the regulation in the reporting period. X. Non-operational fund occupation from controlling shareholders and its related party □ Applicable √ Not applicable The Company had no non-operational fund occupation from controlling shareholders and its related party. 10 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report XI. Registration form for receiving research, communication and interview in the report period □Applicable √Not applicable The Company had no receiving research, communication or interview in the report period. 11 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Section IV. Financial Statement I. Financial statement 1. Consolidated Balance Sheet Prepared by Nanjing Putian Telecommunications Co., Ltd. September 30, 2020 In RMB Item September 30, 2020 December 31, 2019 Current assets: Monetary funds 142,775,811.83 261,270,033.28 Settlement provisions Capital lent Tradable financial assets Derivative financial assets Note receivable 10,319,290.58 59,653,053.58 Account receivable 608,561,629.61 697,656,063.96 Receivable financing 100,000.00 3,821,550.77 Accounts paid in advance 34,292,697.61 33,759,523.09 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other account receivable 35,051,526.91 28,110,390.53 Including: Interest receivable Dividend receivable Buying back the sale of financial assets Inventories 280,227,113.12 209,397,286.17 Contractual assets Assets held for sale Non-current asset due within one year Other current assets 16,127,655.17 11,610,245.99 12 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Total current assets 1,127,455,724.83 1,305,278,147.37 Non-current assets: Loans and payments on behalf Debt investment Other debt investment Long-term account receivable Long-term equity investment 181,514,313.36 181,762,383.50 Investment in other equity 741,953.00 741,953.00 instrument Other non-current financial assets Investment real estate 7,420,089.17 7,810,210.00 Fixed assets 106,951,893.57 110,722,102.52 Construction in progress 19,286,278.58 13,048,701.59 Productive biological asset Oil and gas asset Right-of-use assets Intangible assets 27,531,249.33 28,381,246.28 Expense on Research and Development Goodwill Long-term expenses to be 3,968,851.34 4,260,775.18 apportioned Deferred income tax asset Other non-current asset Total non-current asset 347,414,628.35 346,727,372.07 Total assets 1,474,870,353.18 1,652,005,519.44 Current liabilities: Short-term loans 427,000,000.00 451,915,948.50 Loan from central bank Capital borrowed Trading financial liability Derivative financial liability Note payable 72,716,574.70 81,784,929.91 Account payable 635,392,423.97 679,428,580.08 Accounts received in advance 22,148,080.67 13 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Contractual liability 15,988,273.03 Selling financial asset of repurchase Absorbing deposit and interbank deposit Security trading of agency Security sales of agency Wage payable 17,576,009.70 21,602,707.70 Taxes payable 7,525,772.81 4,125,566.60 Other account payable 65,284,098.59 61,246,678.81 Including: Interest payable Dividend payable 1,692,213.38 12,538,813.38 Commission charge and commission payable Reinsurance payable Liability held for sale Non-current liabilities due within 2,926,070.53 10,820,807.35 one year Other current liabilities Total current liabilities 1,244,409,223.33 1,333,073,299.62 Non-current liabilities: Insurance contract reserve Long-term loans Bonds payable Including: Preferred stock Perpetual capital securities Lease liability Long-term account payable 12,827,205.03 12,827,205.03 Long-term wages payable Accrual liability Deferred income 4,698,897.00 6,004,873.00 Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 17,526,102.03 18,832,078.03 14 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Total liabilities 1,261,935,325.36 1,351,905,377.65 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 -6,776,124.71 -6,776,124.85 Reasonable reserve Surplus public reserve 589,559.77 589,559.77 Provision of general risk Retained profit -284,691,750.74 -224,644,862.48 Total owner’ s equity attributable to 109,496,218.17 169,543,106.29 parent company Minority interests 103,438,809.65 130,557,035.50 Total owner’ s equity 212,935,027.82 300,100,141.79 Total liabilities and owner’ s equity 1,474,870,353.18 1,652,005,519.44 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 September 30, 2020 December 31, 2019 Current assets: Monetary funds 61,854,488.36 75,513,546.51 Trading financial assets Derivative financial assets Note receivable 2,180,607.60 Account receivable 246,491,737.39 415,997,318.07 Receivable financing 2,307,438.00 15 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Accounts paid in advance 4,050,889.88 13,234,147.98 Other account receivable 52,572,356.41 26,761,817.07 Including: Interest receivable Dividend receivable Inventories 137,001,647.79 73,809,627.64 Contractual assets Assets held for sale Non-current assets maturing within one year Other current assets 8,252,459.99 2,778,241.54 Total current assets 510,223,579.82 612,582,744.41 Non-current assets: Debt investment Other debt investment Long-term receivables Long-term equity investments 332,822,064.00 333,070,134.14 Investment in other equity 741,953.00 741,953.00 instrument Other non-current financial assets Investment real estate Fixed assets 50,839,923.07 52,382,989.60 Construction in progress Productive biological assets Oil and natural gas assets Right-of-use assets Intangible assets 11,058,345.69 11,557,138.68 Research and development costs Goodwill Long-term deferred expenses 3,049,303.34 3,129,023.74 Deferred income tax assets Other non-current assets Total non-current assets 398,511,589.10 400,881,239.16 Total assets 908,735,168.92 1,013,463,983.57 Current liabilities Short-term borrowings 352,000,000.00 371,812,627.72 16 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Trading financial liability Derivative financial liability Notes payable 72,716,574.70 81,784,929.91 Account payable 243,232,418.68 274,182,241.12 Accounts received in advance 7,517,427.53 Contractual liability 3,958,048.68 Wage payable 8,024,439.64 8,135,211.34 Taxes payable -124,183.46 199,408.61 Other accounts payable 174,894,799.45 213,090,147.71 Including: Interest payable Dividend payable Liability held for sale Non-current liabilities due within 2,926,070.53 10,820,807.35 one year Other current liabilities Total current liabilities 857,628,168.22 967,542,801.29 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Lease liability Long-term account payable 12,827,205.03 12,827,205.03 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 13,827,205.03 13,827,205.03 Total liabilities 871,455,373.25 981,370,006.32 Owners’ equity: Share capital 215,000,000.00 215,000,000.00 Other equity instrument 17 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Including: preferred stock Perpetual capital securities Capital public reserve 172,417,299.81 172,417,299.81 Less: Inventory shares Other comprehensive income -1,854,910.00 -1,854,910.00 Special reserve Surplus reserve 589,559.76 589,559.76 Retained profit -348,872,153.90 -354,057,972.32 Total owner’s equity 37,279,795.67 32,093,977.25 Total liabilities and owner’s equity 908,735,168.92 1,013,463,983.57 3. Consolidated Profit Statement (the period) In RMB Item Current period Last period I. Total operating income 257,967,139.46 277,519,139.93 Including: Operating income 257,967,139.46 277,519,139.93 Interest income Insurance gained Commission charge and commission income II. Total operating cost 264,060,352.39 290,840,607.90 Including: Operating cost 204,136,851.86 217,793,388.10 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 6,207,248.99 1,479,817.40 Sales expense 24,599,016.71 30,816,177.32 18 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Administrative expense 13,206,350.47 17,671,873.14 R&D expense 10,351,773.98 14,871,137.85 Financial expense 5,559,110.38 8,208,214.09 Including: Interest 8,035,412.71 10,155,341.90 expenses Interest income 1,006,752.42 -1,644,355.60 Add: other income 1,475,940.87 -574,917.29 Investment income (Loss is 70.24 451.53 listed with “-”) Including: Investment income 70.24 451.53 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 91,428.02 743,808.60 (Loss is listed with “-”) Losses of devaluation of asset 1,091,680.66 (Loss is listed with “-”) Income from assets disposal 10,957,654.37 -46,982.80 (Loss is listed with “-”) III. Operating profit (Loss is listed with 7,523,561.23 -13,199,107.93 “-”) Add: Non-operating income 1,450,696.04 1,234,394.90 Less: Non-operating expense 632,867.21 50,455.76 IV. Total profit (Loss is listed with “-”) 8,341,390.06 -12,015,168.79 Less: Income tax expense 2,576,042.15 -714,264.39 V. Net profit (Net loss is listed with “-”) 5,765,347.91 -11,300,904.40 (i) Classify by business continuity 1.continuous operating net profit 5,765,347.91 -11,300,904.40 (net loss listed with ‘-”) 2.termination of net profit (net loss listed with ‘-”) 19 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report (ii) Classify by ownership 1.Net profit attributable to owner’s -1,190,034.23 -16,033,203.08 of parent company 2.Minority shareholders’ gains and 6,955,382.14 4,732,298.68 losses VI. Net after-tax of other comprehensive 724,622.93 72,045.56 income Net after-tax of other comprehensive income attributable to owners of parent 652,160.64 64,841.00 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 652,160.64 64,841.00 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.Amount of financial assets re-classify to other comprehensive income 4.Credit impairment provision for other debt investment 5.Cash flow hedging reserve 6.Translation differences 652,160.64 64,841.00 arising on translation of foreign currency 20 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report financial statements 7.Other Net after-tax of other comprehensive income attributable to minority 72,462.29 7,204.56 shareholders VII. Total comprehensive income 6,489,970.84 -11,228,858.84 Total comprehensive income -537,873.59 -15,968,362.08 attributable to owners of parent Company Total comprehensive income 7,027,844.43 4,739,503.24 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share -0.01 -0.07 (ii) Diluted earnings per share -0.01 -0.07 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 4. Profit Statement of Parent Company (the period) In RMB Item Current period Last period I. Operating income 17,905,025.73 55,016,398.63 Less: Operating cost 17,324,245.80 46,017,065.17 Taxes and surcharge 4,732,312.21 339,926.58 Sales expenses 9,585,398.15 12,227,904.89 Administration expenses 5,916,088.89 8,590,057.27 R&D expenses 1,696,093.79 3,405,244.12 Financial expenses 4,906,458.25 7,055,637.40 Including: interest 6,645,051.99 10,781,415.05 expenses Interest income 417,428.47 63,737.62 Add: other income Investment income (Loss is 27,460,270.24 451.53 21 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report listed with “-”) Including: Investment income 70.24 451.53 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 270,233.08 -2,496,905.43 (Loss is listed with “-”) Losses of devaluation of asset 7,043.75 (Loss is listed with “-”) Income on disposal of assets 10,980,913.53 -48,767.77 (Loss is listed with “-”) II. Operating profit (Loss is listed with 12,462,889.24 -25,164,658.47 “-”) Add: Non-operating income 221.50 26,919.61 Less: Non-operating expense 352,431.89 50,000.00 III. Total Profit (Loss is listed with “-”) 12,110,678.85 -25,187,738.86 Less: Income tax IV. Net profit (Net loss is listed with 12,110,678.85 -25,187,738.86 “-”) (i)continuous operating net profit 12,110,678.85 -25,187,738.86 (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 22 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report 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.Amount of financial assets re-classify to other comprehensive income 4.Credit impairment provision for other debt investment 5.Cash flow hedging reserve 6.Translation differences arising on translation of foreign currency financial statements 7.Other VI. Total comprehensive income 12,110,678.85 -25,187,738.86 VII. Earnings per share: (i) Basic earnings per share 0.06 -0.12 (ii) Diluted earnings per share 0.06 -0.12 5. Consolidated Profit Statement (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Total operating income 663,139,943.08 1,034,716,511.73 Including: Operating income 663,139,943.08 1,034,716,511.73 Interest income Insurance gained Commission charge and 23 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report commission income II. Total operating cost 719,431,447.78 1,105,935,444.51 Including: Operating cost 531,912,844.26 850,889,156.17 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 8,497,285.92 5,973,001.08 Sales expense 83,410,409.36 109,329,639.37 Administrative expense 40,739,708.08 64,931,448.81 R&D expense 34,351,953.11 50,780,178.34 Financial expense 20,519,247.05 24,032,020.74 Including: Interest 23,312,330.97 22,451,433.76 expenses Interest income 3,394,170.15 756,066.93 Add: other income 7,928,748.71 5,431,925.01 Investment income (Loss is -137,869.34 -441,778.63 listed with “-”) Including: Investment income -137,869.34 -441,778.63 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 -5,272,892.33 75,296.00 (Loss is listed with “-”) 24 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Losses of devaluation of asset -2,207,163.50 (Loss is listed with “-”) Income from assets disposal 10,958,898.88 51,857.87 (Loss is listed with “-”) III. Operating profit (Loss is listed with -45,021,782.28 -66,101,632.53 “-”) Add: Non-operating income 5,219,519.02 2,546,510.07 Less: Non-operating expense 1,282,274.78 289,107.80 IV. Total profit (Loss is listed with “-”) -41,084,538.04 -63,844,230.26 Less: Income tax expense 4,818,276.07 1,352,515.26 V. Net profit (Net loss is listed with “-”) -45,902,814.11 -65,196,745.52 (i) Classify by business continuity 1.continuous operating net profit -45,902,814.11 -65,196,745.52 (net loss listed with ‘-”) 2.termination of net profit (net loss listed with ‘-”) (ii) Classify by ownership 1.Net profit attributable to owner’s -60,046,888.26 -73,561,727.96 of parent company 2.Minority shareholders’ gains and 14,144,074.15 8,364,982.44 losses VI. Net after-tax of other comprehensive 0.15 -55.77 income Net after-tax of other comprehensive income attributable to owners of parent 0.14 -50.20 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 25 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report 5. Other (ii) Other comprehensive income items which will be reclassified 0.14 -50.20 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.Amount of financial assets re-classify to other comprehensive income 4.Credit impairment provision for other debt investment 5.Cash flow hedging reserve 6.Translation differences arising on translation of foreign currency 0.14 -50.20 financial statements 7.Other Net after-tax of other comprehensive income attributable to minority 0.01 -5.57 shareholders VII. Total comprehensive income -45,902,813.96 -65,196,801.29 Total comprehensive income -60,046,888.12 -73,561,778.16 attributable to owners of parent Company Total comprehensive income 14,144,074.16 8,364,976.87 attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share -0.28 -0.34 (ii) Diluted earnings per share -0.28 -0.34 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 26 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report 6. Profit Statement of Parent Company (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Operating income 80,505,439.34 396,428,217.21 Less: Operating cost 79,819,319.60 367,175,356.61 Taxes and surcharge 5,285,768.64 1,313,334.89 Sales expenses 32,076,976.60 40,603,458.09 Administration expenses 18,139,468.87 33,017,518.85 R&D expenses 5,922,197.80 12,053,250.85 Financial expenses 19,403,348.62 22,010,410.75 Including: interest 19,799,658.77 20,650,023.56 expenses Interest income 865,525.33 545,584.57 Add: other income 1,262,915.62 800,000.00 Investment income (Loss is 82,589,830.66 -441,778.63 listed with “-”) Including: Investment income -137,869.34 -441,778.63 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 -5,363,182.85 65,296.00 (Loss is listed with “-”) Losses of devaluation of asset -3,291,800.41 (Loss is listed with “-”) Income on disposal of assets 11,048,905.89 -40,345.94 (Loss is listed with “-”) II. Operating profit (Loss is listed with 6,105,028.12 -79,361,941.40 “-”) Add: Non-operating income 40,621.81 981,722.20 Less: Non-operating expense 959,831.51 287,491.39 III. Total Profit (Loss is listed with “-”) 5,185,818.42 -78,667,710.59 27 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Less: Income tax 0.00 0.00 IV. Net profit (Net loss is listed with 5,185,818.42 -78,667,710.59 “-”) (i)continuous operating net profit 5,185,818.42 -78,667,710.59 (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.Amount of financial assets re-classify to other comprehensive income 4.Credit impairment provision for other debt investment 5.Cash flow hedging reserve 6.Translation differences arising on translation of foreign 28 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report currency financial statements 7.Other VI. Total comprehensive income 5,185,818.42 -78,667,710.59 VII. Earnings per share: (i) Basic earnings per share 0.02 -0.37 (ii) Diluted earnings per share 0.02 -0.37 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 837,308,408.63 956,964,700.46 services Net increase of customer deposit and interbank 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 3,783,604.26 7,497,786.72 Other cash received concerning 33,407,061.67 40,017,543.26 operating activities Subtotal of cash inflow arising from 874,499,074.56 1,004,480,030.44 operating activities Cash paid for purchasing 613,767,225.97 828,366,156.39 29 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report commodities and receiving labor service Net increase of customer loans and advances Net increase of deposits in central bank and interbank 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 131,483,655.15 176,788,081.38 Taxes paid 34,698,634.15 60,194,143.85 Other cash paid concerning 70,240,767.91 113,332,438.98 operating activities Subtotal of cash outflow arising from 850,190,283.18 1,178,680,820.60 operating activities Net cash flows arising from operating 24,308,791.38 -174,200,790.16 activities II. Cash flows arising from investing activities: Cash received from recovering 1,183,862.97 investment Cash received from investment income Net cash received from disposal of fixed, intangible and other long-term 23,424,811.00 432,160.00 assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing 23,424,811.00 1,616,022.97 activities Cash paid for purchasing fixed, 7,197,195.45 8,204,168.77 intangible and other long-term assets Cash paid for investment Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained 30 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Other cash paid concerning investing activities Subtotal of cash outflow from investing 7,197,195.45 8,204,168.77 activities Net cash flows arising from investing 16,227,615.55 -6,588,145.80 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 172,737,283.33 323,019,010.00 Other cash received concerning 58,561,263.89 financing activities Subtotal of cash inflow from financing 172,737,283.33 381,580,273.89 activities Cash paid for settling debts 220,222,119.03 283,632,574.54 Cash paid for dividend and profit 56,888,680.68 23,459,616.76 distributing or interest paying Including: Dividend and profit of minority shareholder paid by 38,316,995.00 subsidiaries Other cash paid concerning 43,730,065.17 20,104,291.54 financing activities Subtotal of cash outflow from financing 320,840,864.88 327,196,482.84 activities Net cash flows arising from financing -148,103,581.55 54,383,791.05 activities IV. Influence on cash and cash equivalents due to fluctuation in 225,461.14 104,777.47 exchange rate V. Net increase of cash and cash -107,341,713.48 -126,300,367.44 equivalents Add: Balance of cash and cash 208,783,866.60 201,369,317.42 equivalents at the period -begin VI. Balance of cash and cash 101,442,153.12 75,068,949.98 equivalents at the period -end 8. Cash Flow Statement of Parent Company (form the year-begin to the period-end) In RMB 31 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Item Current period Last period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor 262,359,978.62 273,933,042.75 services Write-back of tax received 135,077.85 Other cash received concerning 69,629,151.54 32,841,184.43 operating activities Subtotal of cash inflow arising from 332,124,208.01 306,774,227.18 operating activities Cash paid for purchasing commodities and receiving labor 158,297,750.55 202,505,864.89 service Cash paid to/for staff and workers 51,401,064.00 73,169,249.50 Taxes paid 6,197,955.98 17,938,872.42 Other cash paid concerning 121,602,927.49 84,037,131.12 operating activities Subtotal of cash outflow arising from 337,499,698.02 377,651,117.93 operating activities Net cash flows arising from operating -5,375,490.01 -70,876,890.75 activities II. Cash flows arising from investing activities: Cash received from recovering investment Cash received from investment 82,727,700.00 400,000.00 income Net cash received from disposal of fixed, intangible and other long-term 23,424,011.00 75,110.00 assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing 106,151,711.00 475,110.00 activities Cash paid for purchasing fixed, 441,129.96 1,002,480.46 intangible and other long-term assets Cash paid for investment Net cash received from subsidiaries and other units obtained 32 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Other cash paid concerning investing activities Subtotal of cash outflow from investing 441,129.96 1,002,480.46 activities Net cash flows arising from investing 105,710,581.04 -527,370.46 activities III. Cash flows arising from financing activities Cash received from absorbing investment Cash received from loans 99,737,283.33 223,019,010.00 Other cash received concerning 58,561,263.89 financing activities Subtotal of cash inflow from financing 99,737,283.33 281,580,273.89 activities Cash paid for settling debts 140,222,119.03 173,622,574.54 Cash paid for dividend and profit 15,480,803.76 18,485,620.63 distributing or interest paying Other cash paid concerning 46,108,000.00 20,000,000.00 financing activities Subtotal of cash outflow from financing 201,810,922.79 212,108,195.17 activities Net cash flows arising from financing -102,073,639.46 69,472,078.72 activities IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash -1,738,548.43 -1,932,182.49 equivalents Add: Balance of cash and cash 25,794,743.17 23,812,669.19 equivalents at the period -begin VI. Balance of cash and cash 24,056,194.74 21,880,486.70 equivalents at the period -end II. Explanation on financial statement adjustment 1. Financial statement adjustment at the beginning of the first year when implementation of new revenue rules and new leasing rules from 2020 √ Applicable □Not applicable Whether to adjust the balance sheet account at the beginning of the year √ Yes □No Consolidate balance sheet 33 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report In RMB Item December 31, 2019 January 1, 2020 Adjustment amount Current assets: Monetary funds 261,270,033.28 261,270,033.28 Settlement provisions Capital lent Tradable financial assets Derivative financial assets Note receivable 59,653,053.58 59,653,053.58 Account receivable 697,656,063.96 697,656,063.96 Receivable financing 3,821,550.77 3,821,550.77 Accounts paid in 33,759,523.09 33,759,523.09 advance Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other account 28,110,390.53 28,110,390.53 receivable Including: Interest receivable Dividend receivable Buying back the sale of financial assets Inventories 209,397,286.17 209,397,286.17 Contractual assets Assets held for sale Non-current asset due within one year Other current assets 11,610,245.99 11,610,245.99 Total current assets 1,305,278,147.37 1,305,278,147.37 Non-current assets: Loans and payments on behalf 34 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Debt investment Other debt investment Long-term account receivable Long-term equity 181,762,383.50 181,762,383.50 investment Investment in other 741,953.00 741,953.00 equity instrument Other non-current financial assets Investment real estate 7,810,210.00 7,810,210.00 Fixed assets 110,722,102.52 110,722,102.52 Construction in progress 13,048,701.59 13,048,701.59 Productive biological asset Oil and gas asset Right-of-use assets Intangible assets 28,381,246.28 28,381,246.28 Expense on Research and Development Goodwill Long-term expenses to 4,260,775.18 4,260,775.18 be apportioned Deferred income tax asset Other non-current asset Total non-current asset 346,727,372.07 346,727,372.07 Total assets 1,652,005,519.44 1,652,005,519.44 Current liabilities: Short-term loans 451,915,948.50 451,915,948.50 Loan from central bank Capital borrowed Trading financial liability Derivative financial liability Note payable 81,784,929.91 81,784,929.91 35 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Account payable 679,428,580.08 679,428,580.08 Accounts received in 22,148,080.67 -22,148,080.67 advance Contractual liability 22,148,080.67 22,148,080.67 Selling financial asset of repurchase Absorbing deposit and interbank deposit Security trading of agency Security sales of agency Wage payable 21,602,707.70 21,602,707.70 Taxes payable 4,125,566.60 4,125,566.60 Other account payable 61,246,678.81 61,246,678.81 Including: Interest payable Dividend 12,538,813.38 12,538,813.38 payable Commission charge and commission payable Reinsurance payable Liability held for sale Non-current liabilities 10,820,807.35 10,820,807.35 due within one year Other current liabilities Total current liabilities 1,333,073,299.62 1,333,073,299.62 Non-current liabilities: Insurance contract reserve Long-term loans Bonds payable Including: Preferred stock Perpetual capital securities Lease liability Long-term account 12,827,205.03 12,827,205.03 36 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report payable Long-term wages payable Accrual liability Deferred income 6,004,873.00 6,004,873.00 Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 18,832,078.03 18,832,078.03 Total liabilities 1,351,905,377.65 1,351,905,377.65 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 -6,776,124.85 -6,776,124.85 income Reasonable reserve Surplus public reserve 589,559.77 589,559.77 Provision of general risk Retained profit -224,644,862.48 -224,644,862.48 Total owner’ s equity attributable to parent 169,543,106.29 169,543,106.29 company Minority interests 130,557,035.50 130,557,035.50 Total owner’ s equity 300,100,141.79 300,100,141.79 Total liabilities and owner’ s 1,652,005,519.44 1,652,005,519.44 equity Statement of adjustment Balance Sheet of Parent Company In RMB Item December 31, 2019 January 1, 2020 Adjustment amount 37 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Current assets: Monetary funds 75,513,546.51 75,513,546.51 Trading financial assets Derivative financial assets Note receivable 2,180,607.60 2,180,607.60 Account receivable 415,997,318.07 415,997,318.07 Receivable financing 2,307,438.00 2,307,438.00 Accounts paid in 13,234,147.98 13,234,147.98 advance Other account 26,761,817.07 26,761,817.07 receivable Including: Interest receivable Dividend receivable Inventories 73,809,627.64 73,809,627.64 Contractual assets Assets held for sale Non-current assets maturing within one year Other current assets 2,778,241.54 2,778,241.54 Total current assets 612,582,744.41 612,582,744.41 Non-current assets: Debt investment Other debt investment Long-term receivables Long-term equity 333,070,134.14 333,070,134.14 investments Investment in other 741,953.00 741,953.00 equity instrument Other non-current financial assets Investment real estate Fixed assets 52,382,989.60 52,382,989.60 Construction in progress 38 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Productive biological assets Oil and natural gas assets Right-of-use assets Intangible assets 11,557,138.68 11,557,138.68 Research and development costs Goodwill Long-term deferred 3,129,023.74 3,129,023.74 expenses Deferred income tax assets Other non-current assets Total non-current assets 400,881,239.16 400,881,239.16 Total assets 1,013,463,983.57 1,013,463,983.57 Current liabilities Short-term borrowings 371,812,627.72 371,812,627.72 Trading financial liability Derivative financial liability Notes payable 81,784,929.91 81,784,929.91 Account payable 274,182,241.12 274,182,241.12 Accounts received in 7,517,427.53 -7,517,427.53 advance Contractual liability 7,517,427.53 7,517,427.53 Wage payable 8,135,211.34 8,135,211.34 Taxes payable 199,408.61 199,408.61 Other accounts payable 213,090,147.71 213,090,147.71 Including: Interest payable Dividend payable Liability held for sale Non-current liabilities 10,820,807.35 10,820,807.35 due within one year 39 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Other current liabilities Total current liabilities 967,542,801.29 967,542,801.29 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Lease liability Long-term account 12,827,205.03 12,827,205.03 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 13,827,205.03 13,827,205.03 Total liabilities 981,370,006.32 981,370,006.32 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 -1,854,910.00 -1,854,910.00 income Special reserve Surplus reserve 589,559.76 589,559.76 Retained profit -354,057,972.32 -354,057,972.32 40 Nanjing Putian Telecommunications Co., Ltd. 2020 Third Quarterly Report Total owner’s equity 32,093,977.25 32,093,977.25 Total liabilities and owner’s 1,013,463,983.57 1,013,463,983.57 equity Statement of adjustment 2. Retrospective adjustment of the comparative data for initial implementation of new revenue rules and new leasing rules from 2020 □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 2020 41