Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
THIRD QUARTER REPORT 2017
October 2017
1
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory
Board”) as well as the directors, supervisors and senior management of Tsann
Kuen (China) Enterprise Co., Ltd. (the “Company”) hereby guarantee the
factuality, accuracy and completeness of the contents of this Report, and shall be
jointly and severally liable for any false representation, misleading statements or
material omissions in this Report.
All the directors of the Company attended the board meeting for the review of
this Report.
Mr. Pan Zhirong, head of the Company, and Mr. Feng Zhiqing, accounting head
for this Report and head of the accounting department (head of accounting) of
the Company, hereby guarantee that the financial statements carried in this
Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be
any discrepancies or misunderstandings between the two versions, the Chinese
version shall prevail.
2
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes √ No
Unit: RMB
September 30, December 31,
Item Change (%)
2017 2016
Total assets 1,649,663,295.14 1,697,533,004.99 -2.82
Equity attributable to owners of the parent 601,733,738.23 610,856,271.31 -1.49
July-September YoY change January-September
Item YoY change (%)
2017 (%) 2017
Net sales 548,983,805.26 3.46 1,418,667,563.94 6.77
Net margin attributable to owners of the parent 4,975,244.01 -58.97 16,041,818.12 -46.37
Net margin attributable to owners of the parent before
-472,110.13 -104.04 6,331,562.93 -77.08
exceptional gains and losses
Net cash from operating activities 26,106,716.46 -1,610.45 -31,404,579.50 49.27
Basic earnings per share 0.03 -50.00 0.09 -43.75
Diluted earnings per share 0.03 -50.00 0.09 -43.75
Weighted average return on equity (%) 0.83 -1.22 2.62 -2.54
Total share capital up to the trading day before the disclosure:
Total share capital up to the trading day before the disclosure (share) 185,391,680
Fully diluted EPS calculated according to the latest share capital (RMB/share) 0.09
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Profit/loss on disposal of non-current assets (including offset amount of asset Mainly profit/loss on
42,394.71
impairment provisions) disposal of assets
Tax rebates, reductions and exemptions due to approval beyond authority or
the lack of official approval documents
Government grants charged to the profit/loss for the Reporting Period
1,238,690.44
(except for the government grants closely related to the business of the
3
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Item January-September 2017 Note
Company and given at a fixed quota or amount in accordance with the State’s
uniform standards)
Capital occupation charges on non-financial enterprises that are charged to
the profit/loss for the Reporting Period
Profit due to the situation where investment costs for the Company to obtain
subsidiaries, associates and joint ventures are lower than the enjoyable fair
value of identifiable net assets of investees when making investments
Profit/loss on non-monetary asset swap
Profit/loss on entrusting others with investments or asset management
Asset impairment provisions due to acts of God such as natural disasters
Profit/loss on debt restructuring
Restructuring costs in staff arrangement, integration, etc.
Profit/loss on the part over the fair value due to transactions with distinctly
unfair prices
Reporting Period net profit/loss of subsidiaries acquired through business
mergers under the same control from period-beginnings to merger dates
Profit/loss on contingencies irrelevant to the Company’s normal business
activities
Profit/loss on fair value changes of transactional financial assets and Gains on sale of forward
liabilities & investment profit on disposal of transactional financial assets exchange contracts, fair
and liabilities as well as financial assets available for sale, except for 10,330,084.80 value changes, financial
effectively hedging business related to normal business operations of the products and other current
Company assets
Impairment provision reversal for accounts receivable on which the
impairment test is carried out separately
Profit/loss on entrusted loans
Profit/loss on fair value changes in investing properties of which the
subsequent measurement is carried out adopting the fair value method
Effect on Reporting Period profit/loss when a one-off adjustment is made to
Reporting Period profit/Loss according to requirements of taxation,
accounting and other relevant laws and regulations
Custody fee income when entrusted with operations
Non-operating income and expense other than the above 3,561,652.70
Other profit/loss that meet the definition of exceptional profit/loss
Less: Income tax effects 2,253,309.93
Minority interests effects (after tax) 3,209,257.53
Total 9,710,255.19
4
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gains and
Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent
gain/loss:
□ Applicable √ Not applicable
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of preference
Total number of common shareholders at
16,999 shareholders with resumed voting 0
period-end
rights at period-end
Top 10 shareholders
Total shares Restricted Pledged or frozen shares
Nature of Shareholding
Name of shareholder held at shares held at
shareholder percentage Status Number
period-end period-end
FORDCHEE DEVELOPMENT Foreign
29.10% 53,940,530 0 N/A 0
LIMITED corporation
EUPA INDUSTRY Foreign
13.09% 24,268,840 0 N/A 0
CORPORATION LIMITED corporation
GUOTAI JUNAN
Foreign
SECURITIES(HONGKONG) 4.95% 9,171,449 0 N/A 0
corporation
LIMITED
FILLMAN INVESTMENTS Foreign
2.49% 4,621,596 0 N/A 0
LIMITED corporation
SHENWAN HONGYUAN Foreign
1.79% 3,326,452 0 N/A 0
SECURITIES (H.K.) LIMITED corporation
CHINA EVERBRIGHT Foreign
1.09% 2,018,155 0 N/A 0
SECURITIES(H.K.) CO., LTD corporation
Domestic
CHEN YONGQUAN 1.02% 1,897,343 0 N/A 0
individual
CHINA MERCHANTS State-owned
0.90% 1,662,983 N/A 0
SECURITIES (HK) CO., LTD. corporation
Foreign
CHEN YONGQING 0.80% 1,488,949 0 N/A 0
individual
Foreign
CHEN LIJUAN 0.72% 1,330,434 0 N/A 0
individual
5
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Top 10 non-restricted shareholders
Non-restricted Type of stock
Name of shareholder shares held at
Type Number
period-end
FORDCHEE DEVELOPMENT
53,940,530 Domestically listed stock for foreign investors 53,940,530
LIMITED
EUPA INDUSTRY CORPORATION
24,268,840 Domestically listed stock for foreign investors 24,268,840
LIMITED
GUOTAI JUNAN
SECURITIES(HONGKONG) 9,171,449 Domestically listed stock for foreign investors 9,171,449
LIMITED
FILLMAN INVESTMENTS
4,621,596 Domestically listed stock for foreign investors 4,621,596
LIMITED
SHENWAN HONGYUAN
3,326,452 Domestically listed stock for foreign investors 3,326,452
SECURITIES (H.K.) LIMITED
CHINA EVERBRIGHT
2,018,155 Domestically listed stock for foreign investors 2,018,155
SECURITIES(H.K.) CO., LTD
CHEN YONGQUAN 1,897,343 Domestically listed stock for foreign investors 1,897,343
CHINA MERCHANTS SECURITIES
1,662,983 Domestically listed stock for foreign investors 1,662,983
(HK) CO., LTD.
CHEN YONGQING 1,488,949 Domestically listed stock for foreign investors 1,488,949
CHEN LIJUAN 1,330,434 Domestically listed stock for foreign investors 1,330,434
The first, the second and the fourth shareholders are the Company’s corporate controlling
Related or acting-in-concert parties shareholders. It is unknown whether the other shareholders of tradable shares are related
among shareholders above parties or acting-in-concert parties as prescribed in the Administrative Methods for
Disclosure of the Shareholding Changes of the Listed Company’s Shareholders.
Top 10 common shareholders
conducting securities margin trading (if N/A
any)
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
6
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
Unit: RMB
Item September 30, 2017 December 31, 2016 Change Main reason for change
Cash on hand and at bank 385,253,959.20 749,497,115.33 -48.60 Increase in wealth management products purchased
Financial assets at fair value Assessed income from forward forex contracts in
1,865,850.00 0.00 100.00
through gains/losses current period
Settlement of notes receivable which became due in
Notes receivable 0.00 1,341,076.70 -100.00
current period
Accounts receivable 355,819,594.47 273,086,616.38 30.30 Increased sales
Plant rent and raw material prepayments for fourth
Prepayments 26,320,142.17 6,964,904.97 277.90
quarter in current period
Interest receivable 943,543.04 5,519.56 16,994.53 Increase in undue term deposits
Other current assets 414,366,628.41 139,354,484.01 197.35 Increase in wealth management products purchased
Higher expenditure on land preparation and park
Construction in progress 781,828.96 269,633.08 189.96
repair
Other non-current assets 16,546,106.85 1,248,273.23 1,225.52 Increased prepayments for machinery equipment
Increase in export invoice financings for the purpose
Short-term borrowings 29,579,293.11 0.00 100.00
of wealth management
Financial liabilities at fair value Assessed losses on undelivered forward forex
1,157,050.00 0.00 100.00
through gains/losses contracts
Notes payable 11,230,854.98 23,251,704.93 -51.70 Bank acceptance bills became due
Advances received 19,180,135.56 11,187,023.96 71.45 Increase in advances received from customers
The corporate income taxes for 2016 were paid in the
Taxes payable 4,520,850.45 16,965,068.11 -73.35
current period
Interest payable 67,701.28 0.00 100.00 Provision for loan interest
Long-term payroll payable 273,763.90 187,928.74 45.67 Increased provision
Increase in assessed income from forward forex
Deferred tax liabilities 1,008,711.14 761,461.43 32.47
contracts
Other comprehensive income 5,574,552.85 8,491,902.45 -34.35 Decrease in currency translation income
January-September January-September
Item Change Main reason for change
2017 2016
Reclassification of taxes under administrative
Taxes and surtaxes 7,636,482.30 5,093,070.40 49.94
expense
Increase in unrealized assessed foreign exchange
Finance costs 16,739,068.90 -12,805,713.25 -230.72
losses
7
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
January-September January-September
Item Change Main reason for change
2017 2016
Higher inventory valuation allowances and bad-debt
Asset impairment losses 631,387.02 13,958,770.43 -95.48 provisions made in January-September 2016 as per
the then accounting policies
Decrease in assessed income from forward forex
Gains on fair value changes 708,800.00 8,461,500.00 -91.62
contracts
Increased income from delivered forward forex
Investment income 9,621,284.80 -7,228,536.60 233.10
contracts and wealth management products
Income tax expense 5,223,786.41 8,493,215.93 -38.49 Decreased margins
Net cash from operating
-31,404,579.50 -61,900,410.52 49.27 Increased net sales
activities
Net increase in export invoice financings for the
Net cash from financing
848,610.69 78,825,089.31 -98.92 purpose of wealth management in January-September
activities
2016
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
1. Contingencies
(1) The subsidiary of the Company - TsannKuen China (Shanghai) Enterprise Co., Ltd. (hereafter, TKS) signed the Plant Leasing
contract with Shanghai Liangxin Industrial Co., Ltd. (hereafter, SHLX) at November 2007, and leased the plant (including plant
affiliated land, ground buildings and related ancillary equipment, etc) located in No. 4407 Caoan Road Jiading District, Shanghai to
SHLX. The real estate certificate of leasehold is Hu Fangdi Jia Zi (2006) No. 011945, the lease period is from November 2007 to
November 2019, the purpose to the lessee for the use of legitimate factory and storage. The provisions of contract point out if the
lessee need to build plant because of production should to obtain government and relevant authorities’ agreements. Except to
confiscate the deposit, the lessor can terminate the contract and does not have to undertake any responsibility if the lessee sublease
the leasehold, make improvement or addition to the leasehold without to obtain the written consent from lessor.
TKS submitted the civil action to Shanghai Jiading District People's Court by cause of action “the lessee SHLX decorated and
subleased the leasehold to Shanghai Hujia Fruit Sales Limited Company (hereafter, SHHJ) without to obtain the written consent from
lessor” on October 28, 2015, and required early termination of the Plant Leasing contract with SHLX, and required SHHJ to
terminate construction and to repristinate the leasehold.
On November 23, 2016, on the dispute between TKS and SHLX, Shanghai Jiading District People's Court made ((2015) Jia Min San
(Civil) Chu Zi No. 1640) civil judgment: A. the related lease contract should terminate dated November 12, 2015; and B. SHLX
should return to TKS the land (including the plant and dormitory buildings on it) located at in No. 4407 Caoan Road within 20 days
when the judgment took effect.
On November 23, 2016, on the dispute between TKS and Hujia Fruit Co., Ltd., Shanghai Jiading District People's Court made ((2015)
8
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Jia Min Er (Commerce) Chu Zi No. 2661) civil judgment: the decision supports the claims of TKS and Hujia Fruit Co., Ltd. shall
immediately stop the infringement within 10 days after the court's judgment takes effect, cease construction and restore the original
appearance of the site.
SHLX and Hujia Fruit Co., Ltd were both not satisfied with the first instance verdicts and appealed to the Shanghai Second
Intermediate People’s Court. Regarding the SHLX case, the court has made a verdict ((2016) SH 02 Civil Final Civil Judgment No.
10426) on January 12, 2017 to reject SHLX’s appeal and affirm the first instance judgment. As for the Hujia Fruit case, the court has
made a verdict ((2017) SH 02 Civil Final Civil Judgment No. 3007) on June 15, 2017 to reject Hujia Fruit’s appeal and affirm the
first instance judgment.
On March 15, 2017, SHLX appealed to the Shanghai High People’s Court against the second instance judgment issued by the
Shanghai Second Intermediate People’s Court. The high court has made on August 15, 2017 the (2017) SH Civil Appeal Civil
Judgment No. 1179 to reject SHLX’s appeal.
(2) As MTN Products, Inc./ Water Solutions （Hong Kong）Ltd.（“MTN/WSL”）didn’t pay relevant payment in time and fulfill the
order in accordance with the contract, on November 23, 2016, the subsidiary of the Company TKL submitted petition to SUPERIOR
COURT OF CALIFORNIA COUNTY OF LOS ANGELES suing MTN/WSL for payment of USD707,522.92 and USD1,402,940 for
reserve losses, totaling USD2,110,462.92. As of the date of this Report, the case is still pending.
(3) As Philips Lighting (China) Investment Co., Ltd. ("Philips Lighting") did not pay the relevant payment in accordance with the
relevant agreement, the Company's subsidiary TKL sued to Longhai People’s Court on November 23, 2016, requesting Philips
Lighting’s payment of RMB2,499,658.4. As of the date of this Report, the case is still pending.
(4) Tsann Kuen (China) Enterprise Co., Ltd. ("TKC" or the “Company”) and Tianyuan (Xiamen) Assets Management Co., Ltd.
("Tianyuan Company") signed the "Land Lease Contract (Northwest Corner)" and Housing Lease Contract (North Building) "on
June 26, 2013, the " Venue Lease Contract (Southeast Corner) " and " Housing Lease Contract (Huarong Road No.23) "(part of the
house) on July 29, 2013. As such, TKC leased part of ground and housing in plant located at Xinglong Road No.88 to Tianyuan
Company for business activities.
As Tianyuan Company did not pay the rent in accordance with the contract in time and unauthorized use of the lease, the Company
filed a lawsuit to the Xiamen Huli District People's Court, requesting payment of rents by Tianyuan Company. Upon trial, the court
has made on May 30, 2017 the (2015) Hu Civil Chu Zi Civil Judgment No. 0726, ordering Tianyuan Company to pay the rents and
the overdue fines to TKC. Up to the date of this Report, Tianyuan Company has filed an appeal and the date for the second trial has
not yet been set.
2. Progress on Significant Events
Summary of significant event Disclosure date Disclosure website
Controlled sub-subsidiary TKS signed a
09/14/2017 http://www.cninfo.com.cn
land acquisition compensation agreement
9
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company and
Other Commitment Makers, Failed to Fulfill on Time during Reporting Period
√ Applicable □ Not applicable
Commitment Commitment Time of making Period of
Commitment Contents Fulfillment
maker type commitment commitment
Commitment on share reform
Commitment in the acquisition report or
the report on equity changes
Commitments made upon the assets
replacement
Commitments made upon first issuance
or refinance
Commitment on equity incentive
Based on the confidence on the continuous and stable
development of the Company, it committed to increase The Company’s stocks
the shareholding if the Company’s stock price lower than resumed trading on
HKD2.40 per share after the implementation of the December 31, 2012, but the
shares contraction and trading resumption, and it would Company’s stock price hasn’t
FILLMAN Commitment on increase no more than 2% shares (i.e. 3.7078 million met the condition for
Other commitments made to minority Long-term
INVESTMENTS shareholding shares) of the total shares issued by the Company within 12/28/2012 shareholding increase since
shareholders effective
LIMITED increase one year since the date of initial shareholding increase. If the date of trading resumption,
the plan on increasing holding 2% shares of the total FILLMAN Investment
shares is completed, if the stock price hasn’t reached the Limited hasn’t implemented
target price, it will perform relevant approval procedures, the shareholding increase
and propose to CSRC on continuous implementation of plan.
shareholding increase by exemption of offering.
Executed on time or not Yes
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period the beginning of the current year through the end of the next reporting period,
as well as the reasons:
□ Applicable √ Not applicable
10
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
V Securities Investments
□ Applicable √ Not applicable
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Proportion of the
Purchased Sold
closing investment Actual
Related-party Type of Opening amount in amount in Closing
Initial investment Impairment amount in the gain/loss in the
Operator Relation transaction derivative Beginning date Ending date investment the the investment
amount provision Company’s Reporting
or not investment amount Reporting Reporting amount
closing net assets Period
Period Period
(%)
Forward
Bank No No 66,149.42 01/01/2017 09/30/2017 0.00 66,149.42 47,996.83 18,152.59 30.17 563.8
forex
Total 66,149.42 0.00 66,149.42 47,996.83 18,152.59 30.17 563.8
Capital source for derivative investment Self-owned funds
Lawsuits N/A
Disclosure date of the board announcement
03/12/2013
approving the derivative Investment
Disclosure date of the general meeting
announcement approving the derivative 05/18/2013
Investment
1. Analysis on risks from holding of derivative products: gains or losses from difference between contracted exchange rate and market exchange rate on
value date.
2. Control measures:
(1) Principle: The purpose of the financial derivative operation is to avoid risks. The Company shall not conduct transactional operation for other
purposes than risk avoidance. The Company shall not conduct complex derivative trading above the actual operation needs and shall not speculate in
Risk analysis and risk control measures for derivative trading with hedging as an excuse. The overall contractual amount for risk avoidance of the Company shall not exceed the summation of the
positions held in derivatives in this Reporting net risk exposure of the existing assets and liabilities and the net risk exposure of assets and liabilities arising from the operation of the Company in the
Period (including but not limited to market risk, coming year.
liquidity risk, credit risk, operational risk, legal (2) Staff requirements: Personnel taking part in the investment shall all fully understand the risks of derivative investment and strictly execute the
risk, etc.) business operation and risk management mechanisms for derivative investment.
(3) Operation standardization: Before making a derivative investment, the Company shall rationally equip itself with professional personnel for
investment decision-making, business operation, risk control, etc. It shall also inquire and compare among various markets and products. Besides, it shall
strictly control the variety and size of derivative investment and try to choose derivative trading on exchange as much as possible.
(4) Periodic evaluation: Derivative investments shall be evaluated at least twice for a month and the evaluation report shall be sent to a high-ranking
executive authorized by the Board of Directors. And a derivative investment report shall be sent to the Board of Directors annually. The Company and its
11
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
subsidiaries only need to submit to the Board of Directors of the subsidiaries.
(5) Loss limit: The investment loss on a single derivative and all the investment loss shall not exceed 20% of the total investment amount.
(6) Audit system: The audit department audits derivative product trading periodically and submits audit reports to relevant units.
Changes in market price or fair value of (1) Gains on delivered derivatives in the Reporting Period were RMB4.9292 million, and assessed gains on those undelivered were RMB0.7088 million.
derivatives invested in this Reporting Period (2) The former contracted bank provided monthly sheets of estimated exchange rates for the undue contracted forward exchanges on the last trading day
(specific methods used and relevant assumption of the month.
and parameter settings shall be disclosed for (3) The profit and loss from fair value changes of the derivative was confirmed according to the difference between the contracted amount undue by the
analysis of fair value of derivatives) month*the estimated exchange rate and the currency amount when bought in.
Whether significant changes occurred to the
Company’s accounting policy and specific
accounting principles of derivatives in the No significant changes
reporting period compared to the previous
reporting period
Specific opinion from independent directors on The Company has carried out a strict internal assessment for the financial derivative business and has established a corresponding supervision
the Company’s derivatives investment and risk mechanism. We are of the opinion that the financial derivative business conducted by the Company is fairly necessary in its routine operation and is in
control compliance with relevant laws and regulations, with the risks controllable.
12
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
02/14/2017 By phone Individual Inquiry the reform of B share
03/29/2017 By phone Individual Inquiry the reform of B share
Inquiry the reform of B share and the
04/27/2017 By phone Individual
operation situation of the Company
Inquiry the annual allocation of time
05/09/2017 By phone Individual
and the reform of B share
06/07/2017 By phone Individual Inquiry the reform of B share
09/22/2017 By phone Individual Inquiry the reform of B share
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
□ Applicable √ Not applicable
13
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by: Tsann Kuen (China) Enterprise Co., Ltd.
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Cash on hand and at bank 385,253,959.20 749,497,115.33
Settlement reserve
Interbank lendings
Financial assets at fair value through gains/losses 1,865,850.00
Derivative financial assets
Notes receivable 1,341,076.70
Accounts receivable 355,819,594.47 273,086,616.38
Prepayments 26,320,142.17 6,964,904.97
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable 943,543.04 5,519.56
Dividends receivable
Other accounts receivable 29,666,081.24 40,381,756.08
Financial assets purchased under agreements to resell
Inventories 160,430,737.57 223,569,121.90
Assets held for sale
Non-current assets due within one year
Other current assets 414,366,628.41 139,354,484.01
Total current assets 1,374,666,536.10 1,434,200,594.93
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 40,000.00 40,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments
Investment property 38,223,561.91 42,158,120.51
Fixed assets 172,937,978.05 174,529,010.36
Construction in progress 781,828.96 269,633.08
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 29,160,865.07 23,840,277.12
R&D expense
Goodwill
Long-term deferred expense 3,440,602.14 4,142,242.19
Deferred income tax assets 13,865,816.06 17,104,853.57
Other non-current assets 16,546,106.85 1,248,273.23
Total non-current assets 274,996,759.04 263,332,410.06
Total assets 1,649,663,295.14 1,697,533,004.99
Current liabilities:
Short-term borrowings 29,579,293.11
Borrowings from Central Bank
Money deposits accepted and inter-bank deposits
Interbank borrowings
Financial liabilities at fair value through gains/losses 1,157,050.00
14
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Item September 30, 2017 December 31, 2016
Derivative financial liabilities
Notes payable 11,230,854.98 23,251,704.93
Accounts payable 550,097,097.97 589,418,458.93
Advances received 19,180,135.56 11,187,023.96
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 45,775,272.80 45,671,498.70
Taxes payable 4,520,850.45 16,965,068.11
Interest payable 67,701.28
Dividends payable
Other accounts payable 51,932,800.76 58,411,663.19
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 713,541,056.91 744,905,417.82
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable 273,763.90 187,928.74
Special payables
Provisions
Deferred income
Deferred income tax liabilities 1,008,711.14 761,461.43
Other non-current liabilities
Total non-current liabilities 1,282,475.04 949,390.17
Total liabilities 714,823,531.95 745,854,807.99
Owners’ equity:
Share capital 185,391,680.00 185,391,680.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 296,808,965.79 296,808,965.79
Less: Treasury shares
Other comprehensive income 5,574,552.85 8,491,902.45
Special reserve
Surplus reserve 29,946,218.17 29,946,218.17
Provisions for general risks
Retained earnings 84,012,321.42 90,217,504.90
Equity attributable to owners of the parent 601,733,738.23 610,856,271.31
Minority interests 333,106,024.96 340,821,925.69
Total owners’ equity 934,839,763.19 951,678,197.00
Total liabilities and owners’ equity 1,649,663,295.14 1,697,533,004.99
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
15
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
2. Parent Company Balance Sheet
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Cash on hand and at bank 5,772,240.42 6,668,219.24
Financial assets at fair value through gains/losses
Derivative financial assets
Notes receivable 1,341,076.70
Accounts receivable 12,278,141.46 30,084,632.38
Prepayments 576,415.14 224,212.39
Interest receivable
Dividends receivable
Other accounts receivable 526,176.48 539,684.23
Inventories 14,591,329.01 13,862,241.50
Assets held for sale
Non-current assets due within one year
Other current assets 847,844.43 404,776.38
Total current assets 34,592,146.94 53,124,842.82
Non-current assets:
Available-for-sale financial assets 40,000.00 40,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 922,914,701.56 922,914,701.56
Investment property 33,380,668.37 35,720,961.41
Fixed assets 1,665,482.35 1,985,546.98
Construction in progress
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 62,999.99 83,249.99
R&D expense
Goodwill
Long-term deferred expense 30,866.35 69,866.41
Deferred income tax assets 1,512,077.76 1,910,906.98
Other non-current assets
Total non-current assets 959,606,796.38 962,725,233.33
Total assets 994,198,943.32 1,015,850,076.15
Current liabilities:
Short-term borrowings
Financial liabilities at fair value through gains/losses
Derivative financial liabilities
Notes payable
Accounts payable 61,539,029.68 83,598,309.18
Advances received 2,023,502.15 930,623.95
16
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Item September 30, 2017 December 31, 2016
Payroll payable 2,364,907.19 2,912,637.07
Taxes payable 558,164.01 647,392.73
Interest payable
Dividends payable
Other accounts payable 291,113,334.12 298,567,356.74
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 357,598,937.15 386,656,319.67
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 357,598,937.15 386,656,319.67
Owners’ equity:
Share capital 185,391,680.00 185,391,680.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 271,490,289.82 271,490,289.82
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 29,946,218.17 29,946,218.17
Retained earnings 149,771,818.18 142,365,568.49
Total owners’ equity 636,600,006.17 629,193,756.48
Total liabilities and owners’ equity 994,198,943.32 1,015,850,076.15
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
17
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
3. Consolidated Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 548,983,805.26 530,619,224.33
Including: Net sales 548,983,805.26 530,619,224.33
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 549,851,376.85 510,540,658.88
Including: Cost of sales 478,014,591.63 436,505,858.96
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 1,941,118.69 2,117,191.24
Selling expense 20,723,266.33 21,592,482.33
Administrative expense 41,050,765.37 38,444,945.51
Finance costs 7,554,687.38 -2,839,400.73
Asset impairment losses 566,947.45 14,719,581.57
Add: Gains on fair value changes (“-” for losses) -1,172,950.00 2,816,450.00
Investment income (“-” for losses) 7,896,554.66 -2,794,098.65
Including: Share of gains/losses of associates and joint ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 5,856,033.07 20,100,916.80
Add: Non-operating income 2,137,263.63 1,411,057.97
Including: Gains on disposal of non-current assets 246,885.07 234,014.13
Less: Non-operating expense 349,208.60 634,553.26
Including: Losses on disposal of non-current assets 335,740.51 633,914.10
4. Gross margin (“-” for losses) 7,644,088.10 20,877,421.51
Less: Income tax expense 1,807,718.65 5,735,890.00
5. Net margin (“-” for losses) 5,836,369.45 15,141,531.51
Attributable to owners of the parent 4,975,244.01 12,124,393.34
Attributable to minority interests 861,125.44 3,017,138.17
6. Other comprehensive income, net of tax -2,201,449.02 1,037,492.82
Other comprehensive income, net of tax attributable to owners of
-1,651,086.76 778,119.62
the parent
6.1 Other comprehensive income that will not be reclassified
into gains/losses
6.1.1 Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of investees that
cannot be reclassified into gains/losses under equity method
6.2 Other comprehensive income to be subsequently
-1,651,086.76 778,119.62
reclassified into gains/losses
18
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Item July-September 2017 July-September 2016
6.2.1 Share of other comprehensive income of investees that
will be reclassified into gains/losses under equity method
6.2.2 Gains/Losses on fair value changes of
available-for-sale financial assets
6.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Currency translation differences -1,651,086.76 778,119.62
6.2.6 Other
Other comprehensive income, net of tax attributable to minority
-550,362.26 259,373.20
interests
7. Total comprehensive income 3,634,920.43 16,179,024.33
Attributable to owners of the parent 3,324,157.25 12,902,512.96
Attributable to minority interests 310,763.18 3,276,511.37
8. Earnings per share
8.1 Basic earnings per share 0.03 0.07
8.2 Diluted earnings per share 0.03 0.07
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
19
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
4. Parent Company Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 18,273,943.92 29,536,460.04
Less: Operating expenses 13,322,339.86 23,381,737.26
Taxes and surtaxes 816,588.92 0.00
Selling expense 2,049,032.06 3,573,257.71
Administrative expense 2,857,110.81 3,274,027.19
Finance costs -9,995.57 -27,930.83
Asset impairment losses -176.77 1,107,423.60
Add: Gains on fair value changes (“-” for losses)
Investment income (“-” for loss)
Including: Share of gains/losses of associates and joint ventures
Other income
2. Operating margin (“-” for losses) -760,955.39 -1,772,054.89
Add: Non-operating income 178,184.44 20,599.04
Including: Gains on disposal of non-current assets
Less: Non-operating expense
Including: Losses on disposal of non-current assets
3. Gross margin (“-” for losses) -582,770.95 -1,751,455.85
Less: Income tax expense 94,864.76 67,228.41
4. Net margin (“-” for losses) -677,635.71 -1,818,684.26
5. Other comprehensive income, net of tax
5.1 Other comprehensive income that will not be reclassified into gains
and losses
5.1.1 Changes in net liabilities or assets with a defined benefit plan
upon re-measurement
5.1.2 Share of other comprehensive income of investees that cannot be
reclassified into gains/losses under equity method
5.2 Other comprehensive income to be subsequently reclassified into
gains/losses
5.2.1 Share of other comprehensive income of investees that will be
reclassified into gains/losses under equity method
5.2.2 Gains/Losses on fair value changes of available-for-sale financial
assets
5.2.3 Gains/Losses on reclassifying held-to-maturity investments into
available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income -677,635.71 -1,818,684.26
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
20
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
5. Consolidated Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 1,418,667,563.94 1,328,727,913.60
Including: Net sales 1,418,667,563.94 1,328,727,913.60
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 1,409,214,816.00 1,287,099,381.09
Including: Cost of sales 1,217,522,060.56 1,099,323,024.06
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 7,636,482.30 5,093,070.40
Selling expense 50,852,292.92 62,334,643.87
Administrative expense 115,833,524.30 119,195,585.58
Finance costs 16,739,068.90 -12,805,713.25
Asset impairment losses 631,387.02 13,958,770.43
Add: Gains on fair value changes (“-” for losses) 708,800.00 8,461,500.00
Investment income (“-” for losses) 9,621,284.80 -7,228,536.60
Including: Share of gains/losses of associates and joint ventures 8,474.00
Exchange gains (“-” for losses)
Other income 537,632.00
3. Operating margin (“-” for losses) 20,320,464.74 42,861,495.91
Add: Non-operating income 4,952,714.53 5,760,107.37
Including: Gains on disposal of non-current assets 583,637.21 776,541.14
Less: Non-operating expense 647,608.68 696,278.23
Including: Losses on disposal of non-current assets 541,242.50 651,267.92
4. Gross margin (“-” for losses) 24,625,570.59 47,925,325.05
Less: Income tax expense 5,223,786.41 8,493,215.93
5. Net margin (“-” for losses) 19,401,784.18 39,432,109.12
Attributable to owners of the parent 16,041,818.12 29,914,194.70
Attributable to minority interests 3,359,966.06 9,517,914.42
6. Other comprehensive income, net of tax -3,889,799.47 3,093,649.21
Other comprehensive income, net of tax attributable to owners
-2,917,349.60 2,320,236.91
of the parent
6.1 Other comprehensive income that will not be reclassified
15,614.61 0.00
into gains/losses
6.1.1 Changes in net liabilities or assets with a defined
15,614.61
benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of investees
that cannot be reclassified into gains/losses under equity method
6.2 Other comprehensive income to be subsequently
-2,932,964.21 2,320,236.91
reclassified into gains/losses
21
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Item January-September 2017 January-September 2016
6.2.1 Share of other comprehensive income of investees
that will be reclassified into gains/losses under equity method
6.2.2 Gains/Losses on fair value changes of
available-for-sale financial assets
6.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Currency translation differences -2,932,964.21 2,320,236.91
6.2.6 Other
Other comprehensive income, net of tax attributable to minority
-972,449.87 773,412.30
interests
7. Total comprehensive income 15,511,984.71 42,525,758.33
Attributable to owners of the parent 13,124,468.52 32,234,431.61
Attributable to minority interests 2,387,516.19 10,291,326.72
8. Earnings per share
8.1 Basic earnings per share 0.09 0.16
8.2 Diluted earnings per share 0.09 0.16
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
the business mergers was RMB0.00, with the amount for the same period of last year being RMB-2,204,397.97.
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
22
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
6. Parent Company Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 56,209,807.30 93,820,642.20
Less: Operating expenses 40,067,603.65 74,793,216.91
Taxes and surtaxes 1,850,719.92 376,508.47
Selling expense 6,704,672.55 8,285,937.55
Administrative expense 9,113,656.11 9,681,328.73
Finance costs -87,968.80 -18,902.91
Asset impairment losses -890,888.88 2,011,424.52
Add: Gains on fair value changes (“-” for losses)
Investment income (“-” for loss) 30,310,250.78 107,582,142.80
Including: Share of gains/losses of associates and joint ventures
Other income
2. Operating margin (“-” for losses) 29,762,263.53 106,273,271.73
Add: Non-operating income 289,816.98 193,831.54
Including: Gains on disposal of non-current assets
Less: Non-operating expense
Including: Losses on disposal of non-current assets
3. Gross margin (“-” for losses) 30,052,080.51 106,467,103.27
Less: Income tax expense 398,829.22 16,271,335.48
4. Net margin (“-” for losses) 29,653,251.29 90,195,767.79
5. Other comprehensive income, net of tax
5.1 Other comprehensive income that will not be reclassified into
gains and losses
5.1.1 Changes in net liabilities or assets with a defined benefit
plan upon re-measurement
5.1.2 Share of other comprehensive income of investees that
cannot be reclassified into gains/losses under equity method
5.2 Other comprehensive income to be subsequently reclassified
into gains/losses
5.2.1 Share of other comprehensive income of investees that will
be reclassified into gains/losses under equity method
5.2.2 Gains/Losses on fair value changes of available-for-sale
financial assets
5.2.3 Gains/Losses on reclassifying held-to-maturity investments
into available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 29,653,251.29 90,195,767.79
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
23
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
7. Consolidated Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering of service 1,305,824,638.19 1,169,919,248.52
Net increase in money deposits from customers and interbank placements
Net increase in loans from Central Bank
Net increase in funds borrowed from other financial institutions
Cash received as premiums of original insurance contracts
Net cash generated by reinsurance business
Net increase in deposits of policy holders and investment fund
Net increase in disposal of financial assets at fair value through gains/losses
Interest, fees and commissions received
Net increase in interbank borrowings
Net increase in funds in repurchase business
Tax rebates received 149,967,463.54 142,146,912.55
Cash generated by other operating activities 50,832,866.27 50,653,102.85
Subtotal of cash generated by operating activities 1,506,624,968.00 1,362,719,263.92
Cash paid for goods and services 1,126,699,522.01 1,061,333,471.03
Net increase in loans and advances to customers
Net increase in funds deposited in Central Bank and interbank placements
Cash paid for claims of original insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 196,341,723.07 187,990,699.88
Taxes paid 30,028,184.57 18,642,612.06
Cash used in other operating activities 184,960,117.85 156,652,891.47
Subtotal of cash used in operating activities 1,538,029,547.50 1,424,619,674.44
Net cash from operating activities -31,404,579.50 -61,900,410.52
2. Cash generated by or used in investing activities:
Cash generated by disinvestments 177,557,760.97 -7,237,010.60
Cash received as investment income 5,550,982.16 8,474.00
Net cash generated by disposal of fixed assets, intangible assets and other
2,420,867.23 6,333,188.47
long-term assets
Net cash generated by disposal of subsidiaries or other business units
Cash generated by other investing activities 291,063,108.55 105,156,640.61
24
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Item January-September 2017 January-September 2016
Subtotal of cash generated by investing activities 476,592,718.91 104,261,292.48
Cash paid to acquire fixed assets, intangible assets and other long-term assets 60,436,437.49 47,599,553.23
Cash paid for investments 442,066,682.48 206,278,499.22
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business units
Cash used in other investing activities 447,644,729.59 244,896,840.00
Subtotal of cash used in investing activities 950,147,849.56 498,774,892.45
Net cash from investing activities -473,555,130.65 -394,513,599.97
3. Cash generated by or used in financing activities:
Cash received as capital contributions
Including: Cash received from minority shareholder investments by
subsidiaries
Cash received as borrowings 171,176,598.00 111,188,590.00
Cash generated by issuance of bonds
Cash generated by other financing activities 16,305,457.30
Subtotal of cash generated by financing activities 187,482,055.30 111,188,590.00
Repayment of borrowings 146,041,385.30
Cash paid for interest expenses and distribution of dividends or profit 33,955,195.12 32,363,500.69
Including: dividends or profit paid by subsidiaries to minority interests 10,103,416.93 13,824,332.69
Cash used in other financing activities 6,636,864.19
Sub-total of cash used in financing activities 186,633,444.61 32,363,500.69
Net cash from financing activities 848,610.69 78,825,089.31
4. Effect of foreign exchange rate changes on cash and cash equivalents -16,713,677.71 8,490,536.60
5. Net increase in cash and cash equivalents -520,824,777.17 -369,098,384.58
Add: Opening balance of cash and cash equivalents 738,195,729.53 675,824,861.29
6. Closing balance of cash and cash equivalents 217,370,952.36 306,726,476.71
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
25
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
8. Parent Company Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering of service 74,106,238.70 87,550,946.03
Tax rebates received
Cash generated by other operating activities 29,715,192.90 31,327,817.44
Subtotal of cash generated by operating activities 103,821,431.60 118,878,763.47
Cash paid for goods and services 69,636,578.63 75,355,128.31
Cash paid to and for employees 9,559,649.07 9,492,255.28
Taxes paid 3,297,630.22 4,660,056.78
Cash used in other operating activities 30,337,932.27 182,830,976.43
Subtotal of cash used in operating activities 112,831,790.19 272,338,416.80
Net cash from operating activities -9,010,358.59 -153,459,653.33
2. Cash generated by or used in investing activities:
Cash generated by disinvestments 130,000,000.00
Cash received as investment income 30,310,250.78 41,481,472.07
Net cash generated by disposal of fixed assets, intangible assets and
other long-term assets
Net cash generated by disposal of subsidiaries or other business units
Cash generated by other investing activities
Subtotal of cash generated by investing activities 30,310,250.78 171,481,472.07
Cash paid to acquire fixed assets, intangible assets and other
29,710.83 13,798.00
long-term assets
Cash paid for investments 1,000,000.00
Net cash paid to acquire subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 29,710.83 1,013,798.00
Net cash from investing activities 30,280,539.95 170,467,674.07
3. Cash generated by or used in financing activities:
Cash received as capital contributions
Cash received as borrowings
Cash generated by issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities 0.00 0.00
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or
22,247,001.60 18,539,168.00
profit
26
Tsann Kuen (China) Enterprise Co., Ltd. Third Quarter Report 2017
Item January-September 2017 January-September 2016
Cash used in other financing activities
Sub-total of cash used in financing activities 22,247,001.60 18,539,168.00
Net cash from financing activities -22,247,001.60 -18,539,168.00
4. Effect of foreign exchange rate changes on cash and cash equivalents 80,841.42 1,303.29
5. Net increase in cash and cash equivalents -895,978.82 -1,529,843.97
Add: Opening balance of cash and cash equivalents 6,668,219.24 7,750,025.58
6. Closing balance of cash and cash equivalents 5,772,240.42 6,220,181.61
Legal representative: Pan Zhirong Chief of the accounting work: Feng Zhiqing Chief of the accounting organ: Feng Zhiqing
II Auditor’s Report
Are the Q3 2017 financial statements audited?
□Yes √ No
These financial statements are unaudited.
27
