The First Quarterly Report 2017 Guangdong Electric Power Development Co., Ltd. The First Quarterly Report 2017 April 2017 1 The First Quarterly Report 2017 1 Important notes The Board of Directors,the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report. All the directors attended the board meeting for reviewing the first quarterly report except the follows: The name of director who did The name of director who was Positions Reason not attend the meeting in person authorized Hong Rongkun Director Due to business Gao Shiqiang Li Mingliang Director Due to business Yang Xinli Zhang Xueqiu Director Due to business Liu Tao Wang Xi Independent Directorr Due to business Shen Hongtao Mr. Huang Zhenhai, Person in charge of the Company, Ms.Li Xiaoqing , Person in charge of accounting works, Mr.Meng Fei ,CFO as well as person in charge of accounting institution represent and warrant the financial and accounting report in the first quarterly report is true and complete. II. Basic Information of the Company I.Main accounting data and financial Index Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not. □ Yes √ No Changes of this period over This period Same period of last year same period of last year(%) Operating income(RMB) 5,554,665,288 4,405,938,708 26.07% Net profit attributable to the shareholders of -115,409,510 110,019,230 -204.90% the listed company(RMB) Net profit after deducting of non-recurring gain/loss attributable to the shareholders of -125,128,941 110,018,307 -213.73% listed company(RMB) Cash flow generated by business operation, 475,755,783 2,036,376,774 -76.64% net(RMB) Basic earning per share(RMB/Share) -0.022 0.021 -204.76% Diluted gains per -0.022 0.021 -204.76% share(RMB/Share)(RMB/Share) 2 The First Quarterly Report 2017 Weighted average return on equity(%) -0.49% 0.41% -0.90% Changes of this period-end End of this period End of last period over same period-end of last year(%) Gross assets(RMB) 69,786,680,797 70,677,003,760 -1.26% Net assets attributable to the shareholders of 23,282,313,397 23,378,847,225 -0.41% the listed company(RMB) Items and amount of non-current gains and losses √ Applicable □ Not applicable In RMB Amount (Year-beginning to the end Items Notes of the report period.) Non-current asset disposal gain/loss(including the write-off part for 830,322 which assets impairment provision is made) Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the 485,565 state’s policies) Other non-operating income and expenditure except for the 8,403,544 aforementioned items Total 9,719,431 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable√ Not applicable None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 3 The First Quarterly Report 2017 II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares Total preference shareholders Total number of common with the voting power 108,483 0 shareholders at the period-end recovered at the end of the reporting period(if any) Shares held by the top 10 shareholders Pledging or Amount of Share freezing Properties of tradable shares Shareholder name proportion Quantity Status shareholder with Conditional Quant % of the held ity shares State-owned Guangdong Yudean Group Co., Ltd. 67.39% 3,538,005,285 1,893,342,621 legal person State-owned China Securities Finance Co., Ltd. 2.78% 145,748,980 legal person Guangdong Guangfa Electric Power Investment Co., State-owned 2.22% 116,693,602 Ltd. legal person State-owned Guangdong Electric Power Development Corporation 1.80% 94,367,341 legal person Domestic Li Zhuo Natural 0.41% 21,323,385 person BBH A/C VANGUARD EMERGING MARKETS Overseas 0.33% 17,484,844 STOCK INDEX FUND Legal person CHINA INT'L CAPITAL CORP HONG KONG Overseas 0.29% 15,322,336 SECURITIES LTD Legal person Domestic Non-State Harbin Daoli District Charity Foundation 0.28% 14,726,415 owned legal person Overseas NOMURA SINGAPORE LIMITED 0.24% 12,599,843 Legal person State-owned Central Huijin Assets Management Co., Ltd. 0.23% 12,258,200 legal person Shares held by the Top 10 Shareholders of Non-restricted shares Shareholders’ Names Number of the non-restricted shares Share type 4 The First Quarterly Report 2017 held Quant Share type ity RMB Common Guangdong Yudean Group Co., Ltd. 1,644,662,664 shares RMB Common China Securities Finance Co., Ltd. 145,748,980 shares RMB Common Guangdong Guangfa Electric Power Investment Co., Ltd. 116,693,602 shares RMB Common Guangdong Electric Power Development Corporation 94,367,341 shares RMB Common Li Zhuo 21,323,385 shares Foreign shares BBH A/C VANGUARD EMERGING MARKETS STOCK 17,484,844 placed in domestic INDEX FUND exchange Foreign shares CHINA INT'L CAPITAL CORP HONG KONG SECURITIES 15,322,336 placed in domestic LTD exchange RMB Common Harbin Daoli District Charity Foundation 14,726,415 shares Foreign shares NOMURA SINGAPORE LIMITED 12,599,843 placed in domestic exchange RMB Common Central Huijin Assets Management Co., Ltd. 12,258,200 shares The fourth largest shareholder Guangdong Electric Power Development Corporation is the wholly-owned subsidiaries of the Explanation on associated relationship or concerted action of largest shareholder Yudean Group. These two companies have the above shareholders relationships; whether the other shareholders have relationships or unanimous acting was unknown. The Fifth largest shareholder Li Zhuo holds 21,299,565 A shares of the Company through stock account with credit transaction and guarantee and holds 23,820 A shares through ordinary stock account, hold 21,323,385 shares of the Company's stock totally. Note to the top 10 common stockholders involved in margin The Eighth largest shareholder Harbin Daoli District Charity financing & securities lending (If any) Foundation holds 14,696,015 A shares of the Company through stock account with credit transaction and guarantee and holds 30,400 A shares through ordinary stock account, hold 14,726,415 shares of the Company's stock totally. Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a 5 The First Quarterly Report 2017 buy-back agreement dealing in reporting period. □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period. 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable 6 The First Quarterly Report 2017 III. Significant Events I. Particular about large-margin change of main accounting statement item and financial index and its reason. √ Applicable □ Not applicable During the reporting period, the net profit attributable to the shareholders of the listed company is RMB -115,409,510.39, which was mainly due to the acceleration of marketization reform of Guangdong electric power market, the increasing competition, the obvious decline of the company’s on-grid electricity price and the continual rise of coal prices in the first quarter, so the company’s power generation business recorded a loss. II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. □ Applicable √Not applicable III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period □ Applicable √Not applicable Nil. IV.Prediction of Business performance for January- June 2017 Estimation of 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 of reason. □ Applicable √ Not applicable V. Securities investment √ Applicable □Not applicable Sharehol Sharehol Number of ding ding Number of shares held proporti proporti shares held Gain. loss Sauc Securit at the on at the on at the Book balance at Stock Initial at the end of the e of y Stock beginning beginnin end of the end of the Accountin Abbreviati investment of the reporting the catego Code of the g of the the reporting period g items on cost(RMB) reporting period share ry reporting reportin reportin (RMB) period (RMB) s period(shar g g (shares) es) period( period( %) %) 7 The First Quarterly Report 2017 Financial assets Trans Stock 600642 Shenergy 235,837,988 55,532,250 1.22% 55,532,250 1.22% 347,631,885 available feree for sales Financial Issue Shenzhen assets Stock 000027 15,890,628 12,600,000 0.32% 12,600,000 0.32% 89,712,000 obtai Energy available n for sales Financial Estab assets Stock 831039 NEEQ 3,600,000 1,800,000 1.29% 1,800,000 1.29% 7,560,000 lishm available ent for sales Total 255,328,616 69,932,250 -- 69,932,250 -- 444,903,885 0 -- -- Disclosure date for the notice of approval by the Board (If any) Disclosure date for the notice of approval by shareholders’ Meeting (If any) VI. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period √Applicable □Not applicable Way of Reception time Types of visitors Basic index reception Details can be found in the Record Chart of the Investor Onsite January 12,2017 Organization Relation Activity disclosed on Juchao investigation website(www.cninfo.com.cn) on 16 January .2017. Details can be found in the Record Chart of the Investor Onsite March 23,2017 Organization Relation Activity disclosed on Juchao investigation website(www.cninfo.com.cn) on 24 March 2017. VIII. External guarantee get out of line □ Applicable √Not applicable The Company has no external guarantee get out of the line in the Period 8 The First Quarterly Report 2017 IX. Controlling shareholder and its related parties occupying non-business capital of the listed company □ Applicable √Not applicable There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period 9 The First Quarterly Report 2017 IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by: Guangdong Electric Power Development Co., Ltd. March 31,2017 In RMB Items At the end of term Beginning of term Current asset: Monetary fund 4,696,299,558 5,184,873,650 Settlement provision Outgoing call loan Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable Account receivable 2,761,070,936 2,776,061,909 Prepayments 1,093,241,297 1,064,822,122 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Interest receivable 17,888,913 16,681,118 Dividend receivable Other account receivable 145,772,759 133,499,956 Repurchasing of financial assets Inventories 1,456,741,596 1,513,153,241 Assets held for sales Non-current asset due in 1 year 56,847,215 Other current asset 812,320,190 882,055,591 Total of current assets 11,040,182,464 11,571,147,587 Non-current assets: Loans and payment on other’s behalf disbursed Disposable financial asset 1,304,555,571 1,279,387,994 Expired investment in possess 10 The First Quarterly Report 2017 Long-term receivable 81,184,969 136,075,412 Long term share equity investment 5,504,013,892 5,432,637,750 Property investment 8,773,337 8,932,237 Fixed assets 40,886,143,799 41,814,685,521 Construction in progress 6,746,112,990 6,343,293,763 Engineering material 4,224,052 1,496,854 Fixed asset disposal 5,175,689 4,304,229 Production physical assets Gas & petrol Intangible assets 1,695,098,316 1,707,490,221 R & D petrol Goodwill 27,486,780 27,486,780 Long-germ expenses to be amortized 31,431,434 34,611,712 Deferred income tax asset 302,779,937 303,929,269 Other non-current asset 2,149,517,567 2,011,524,431 Total of non-current assets 58,746,498,333 59,105,856,173 Total of assets 69,786,680,797 70,677,003,760 Current liabilities Short-term loans 7,362,860,000 5,758,860,000 Loan from Central Bank Deposit received and hold for others Call loan received Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Bill payable 761,884,858 1,330,480,837 Account payable 2,656,374,683 3,167,250,446 Advance payment 184,798 12,456,360 Selling of repurchased financial assets Fees and commissions receivable Employees’ wage payable 194,376,549 144,122,128 Tax payable 285,059,941 326,919,844 Interest payable 65,579,575 83,648,793 Dividend payable 9,703,930 9,703,930 11 The First Quarterly Report 2017 Other account payable 3,281,765,936 3,292,556,995 Reinsurance fee payable Insurance contract provision Entrusted trading of securities Entrusted selling of securities Liabilities held for sales Non-current liability due in 1 year 1,594,425,876 1,433,644,523 Other current liability 1,018,196,301 1,723,070,000 Total of current liability 17,230,412,447 17,282,713,856 Non-current liabilities: Long-term loan 19,237,804,630 19,888,172,037 Bond payable 1,905,713,367 1,900,124,468 Including:preferred stock Sustainable debt Long-term payable 1,828,020,107 1,917,552,654 Long-term payable employees’s remuneration 110,930,893 122,832,249 Special payable 26,675,385 26,675,385 Expected liabilities Deferred income 130,081,148 125,650,072 Deferred income tax liability 30,448,408 37,718,277 Other non-current liabilities 39,000,000 39,000,000 Total non-current liabilities 23,308,673,938 24,057,725,142 Total of liability 40,539,086,385 41,340,438,998 Owners’ equity Share capital 5,250,283,986 5,250,283,986 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 5,003,007,476 5,003,007,478 Less:Shares in stock Other comprehensive income 163,934,698 145,059,015 Special reserves Surplus reserves 6,845,001,818 6,845,001,818 Common risk provision 12 The First Quarterly Report 2017 Undistributed profit 6,020,085,418 6,135,494,928 Total of owner’s equity belong to the parent company 23,282,313,396 23,378,847,225 Minority shareholders’ equity 5,965,281,016 5,957,717,537 Total of owners’ equity 29,247,594,412 29,336,564,762 Total of liabilities and owners’ equity 69,786,680,797 70,677,003,760 Legal Representative: Huang Zhenhai Person in charge of accounting:Li Xiaoqing Accounting Dept Leader: Meng Fei 2.Parent Company Balance Sheet In RMB Items At the end of term Beginning of term Current asset: Monetary fund 237,999,464 326,073,538 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable Account receivable 154,792,300 212,343,198 Prepayments 79,731,400 79,990,745 Interest receivable 1,240,787 723,819 Dividend receivable Other account receivable 20,523,777 122,933,749 Inventories 169,540,239 149,462,926 Assets held for sales Non-current asset due in 1 year Other current asset 9,200,477 25,650,427 Total of current assets 673,028,444 917,178,402 Non-current assets: Disposable financial asset 1,304,555,571 1,279,387,994 Expired investment in possess Long-term receivable 351,460,000 335,000,000 Long term share equity investment 23,102,612,055 22,896,735,913 Property investment 8,773,337 8,932,237 Fixed assets 1,020,893,791 1,049,906,014 Construction in progress 73,640,587 43,039,781 13 The First Quarterly Report 2017 Engineering material Fixed asset disposal 555,054 Production physical assets Gas & petrol Intangible assets 91,205,788 92,152,556 R & D petrol Goodwill Long-germ expenses to be amortized Deferred income tax asset Other non-current asset 653,004,000 672,504,000 Total of non-current assets 26,606,700,183 26,377,658,495 Total of assets 27,279,728,627 27,294,836,897 Current liabilities Short-term loans 1,300,000,000 300,000,000 Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Bill payable Account payable 218,402,180 517,973,144 Advance payment Employees’ wage payable 32,211,330 31,813,417 Tax payable -2,395,249 9,688,606 Interest payable 8,750,147 48,091,022 Dividend payable 9,703,930 9,703,930 Other account payable 94,504,606 93,522,121 Classified as held for sale debt Non-current liability due in 1 year Other current liability 508,170,959 1,216,583,014 Total of current liability 2,169,347,903 2,227,375,254 Non-current liabilities: Long-term loan 1,500,000,000 1,500,000,000 Bond payable 1,197,220,834 1,196,982,619 Including:preferred stock Sustainable debt 14 The First Quarterly Report 2017 Long-term payable Long-term payable to employees 22,735,295 23,445,887 Special payable Expected liabilities Deferred income 59,851,233 59,533,388 Deferred income tax liability 5,432,460 12,508,093 Other non-current liabilities Total of Non-current liabilities 2,785,239,822 2,792,469,987 Total of liability 4,954,587,725 5,019,845,241 Owners’ equity Share capital 5,250,283,986 5,250,283,986 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 5,605,752,163 5,605,752,163 Less:Shares in stock Other comprehensive income 163,934,698 145,059,015 Special reserves Surplus reserves 6,845,001,818 6,845,001,818 Undistributed profit 4,460,168,237 4,428,894,674 Total of owners’ equity 22,325,140,902 22,274,991,656 Total of liabilities and owners’ equity 27,279,728,627 27,294,836,897 3.Consolidated Income statement In RMB Items Amount in this period Amount in last period I. Income from the key business 5,554,665,288 4,405,938,708 Incl:Business income 5,554,665,288 4,405,938,708 Interest income Insurance fee earned Fee and commission received II. Total business cost 5,731,755,826 4,121,004,327 Incl:Business cost 5,232,107,151 3,593,590,924 15 The First Quarterly Report 2017 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Net amount provided as insurance contract reserves Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 46,883,420 32,165,790 Sales expense 1,128,943 304,397 Administrative expense 135,333,767 147,067,842 Financial expenses 316,302,545 347,875,374 Asset impairment loss Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 71,376,143 16,325,321 Incl: investment gains from affiliates Gains from currency exchange(“-”for loss) III. Operational profit(“-”for loss -105,714,395 301,259,702 Add:Non-business income 15,956,412 4,265,515 Incl:Gains from disposal of non-current assets 1,261,973 Less:Non business expenses 2,849,251 1,327,233 Incl:Loss from disposal of non-current assets 359,258 IV.Total profit(“-”for loss) -92,607,234 304,197,984 Less:Income tax expenses 25,738,798 78,321,126 V. Net profit(“-”for net loss -118,346,032 225,876,858 Net profit attributable to the owners of parent company -115,409,510 110,019,230 Minority shareholders’ equity -2,936,522 115,857,628 VI. Net after-tax of Other comprehensive income 18,875,683 -86,129,797 Net after-tax 18,875,683 -86,129,797 of other comprehensive income attributable to owners of the parent compan y. (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net debt or net ass ets 16 The First Quarterly Report 2017 2.Other comprehensive income under the equity method investee can not b e reclassified into profit or loss. (II) 18,875,683 -86,129,797 Other comprehensive income that will be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be rec lassified into profit or loss. 2.Gains and losses from changes in fair value available for sale financial as 18,875,683 -86,129,797 sets 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets 4.The effective portion of cash flow hedges and losses 5.Translation differences in currency financial statements 6.Other Net after-tax of other comprehensive income attributable to Minority shareholders’ equity VII. Total comprehensive income -99,470,349 139,747,061 Total comprehensive income attributable to the owner of the parent -96,533,827 23,889,433 company Total comprehensive income attributable minority shareholders -2,936,522 115,857,628 VIII. Earnings per share (I)Basic earnings per share -0.022 0.021 (II)Diluted earnings per share -0.022 0.021 Legal Representative: Huang Zhenhai Person in charge of accounting:Li Xiaoqing Accounting Dept Leader:Meng Fei 4.Income statement of the Parent Company In RMB Items Amount in this period Amount in last period I. Income from the key business 380,801,562 318,809,041 Less:Business cost 381,038,604 264,269,337 Business tax and surcharge 465,610 2,516,242 Sales expense 3,062 9,300 Administrative expense 19,688,793 22,052,521 Financial expenses 47,038,961 55,361,550 Asset impairment loss 17 The First Quarterly Report 2017 Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 75,921,316 125,619,860 Incl: investment gains from affiliates 71,376,143 II. Operational profit(“-”for loss) 8,487,848 100,219,951 Add :Non-operational income 9,551,560 156,876 Including:Income from disposal of non-current assets Less:Non business expenses 133,371 Incl:Loss from disposal of non-current assets III.Total profit(“-”for loss) 17,906,037 100,376,827 Less:Income tax expenses -13,367,526 -4,890,854 IV. Net profit(“-”for net loss) 31,273,563 105,267,681 V.Net of profit of other comprehensive income 18,875,683 -86,129,797 (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net debt or net ass ets 2.Other comprehensive income under the equity method investee can not b e reclassified into profit or loss. ( II ) 18,875,683 -86,129,797 Other comprehensive income that will be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be rec lassified into profit or loss. 2.Gains and losses from changes in fair value available for sale financial as 18,875,683 -86,129,797 sets 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets 4.The effective portion of cash flow hedges and losses 5.Translation differences in currency financial statements 6.Other VI. Total comprehensive income 50,149,246 19,137,884 VII. Earnings per share: (I)Basic earnings per share (II)Diluted earnings per share 18 The First Quarterly Report 2017 5. Consolidated Cash Flow Statement In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or rending of services 6,534,220,810 5,674,442,022 Net increase of customer deposits and capital kept for brother company Net increase of loans from central bank Net increase of inter-bank loans from other financial bodies Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and investment Net increase of the financial assets that are measured at fair value and whose movement is counted to the current gain and loss Cash received as interest, processing fee and commission Net increase of inter-bank fund received Net increase of repurchasing business Tax returned 232,947 Other cash received from business operation 38,308,102 41,332,891 Sub-total of cash inflow 6,572,761,859 5,715,774,913 Cash paid for purchasing of merchandise and services 5,217,883,087 2,586,671,975 Net increase of client trade and advance Net increase of savings n central bank and brother company Cash paid for original contract claim Cash paid for interest, processing fee and commission Cash paid for policy dividend Cash paid to staffs or paid for staffs 354,132,647 421,496,400 Taxes paid 361,679,696 580,585,560 Other cash paid for business activities 163,310,646 90,644,204 Sub-total of cash outflow from business activities 6,097,006,076 3,679,398,139 Cash flow generated by business operation, net 475,755,783 2,036,376,774 II.Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 4,000,000 Net cash retrieved from disposal of fixed assets, intangible assets, and other 1,062,462 1,454,595 19 The First Quarterly Report 2017 long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 10,500,000 Sub-total of cash inflow due to investment activities 11,562,462 5,454,595 Cash paid for construction of fixed assets, intangible assets and other 607,704,985 896,503,587 long-term assets Cash paid as investment 125,694 Net increase of loan against pledge Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to investment activities 607,830,679 896,503,587 Net cash flow generated by investment -596,268,217 -891,048,992 III.Cash flow generated by financing Cash received as investment Incl: Cash received as investment from minor shareholders Cash received as loans 3,030,404,699 1,543,634,099 Cash received from bond placing Other financing –related ash received 21,216 Sub-total of cash inflow from financing activities 3,030,404,699 1,543,655,315 Cash to repay debts 2,972,122,871 2,080,799,113 Cash paid as dividend, profit, or interests 419,903,293 589,399,636 Incl: Dividend and profit paid by subsidiaries to minor shareholders Other cash paid for financing activities 6,440,107 Sub-total of cash outflow due to financing activities 3,398,466,271 2,670,198,749 Net cash flow generated by financing -368,061,572 -1,126,543,434 IV. Influence of exchange rate alternation on cash and cash equivalents -86 V.Net increase of cash and cash equivalents -488,574,092 18,784,348 Add: balance of cash and cash equivalents at the beginning of term 5,184,873,650 5,237,406,725 VI ..Balance of cash and cash equivalents at the end of term 4,696,299,558 5,256,191,073 6. Cash Flow Statement of the Parent Company In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities 20 The First Quarterly Report 2017 Cash received from sales of goods or rending of services 506,722,273 386,301,628 Tax returned 232,947 Other cash received from business operation 4,345,031 7,779,609 Sub-total of cash inflow 511,300,251 394,081,237 Cash paid for purchasing of merchandise and services 662,899,601 271,094,555 Cash paid to staffs or paid for staffs 76,886,841 87,990,980 Taxes paid 9,375,647 26,048,790 Other cash paid for business activities 9,965,255 8,590,444 Sub-total of cash outflow from business activities 759,127,344 393,724,769 Cash flow generated by business operation, net -247,827,093 356,468 II.Cash flow generated by investing Cash received from investment retrieving 100,000,000 300,000,000 Cash received as investment gains 4,295,833 115,860,806 Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received Sub-total of cash inflow due to investment activities 104,295,833 415,860,806 Cash paid for construction of 17,484,290 32,846,592 fixed assets, intangible assets and other long-term assets Cash paid as investment 131,602,154 620,400,000 Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to investment activities 149,086,444 653,246,592 Net cash flow generated by investment -44,790,611 -237,385,786 III.Cash flow generated by financing Cash received as investment Cash received as loans 1,300,000,000 700,000,000 Cash received from bond placing Other financing –related ash received 21,217 Sub-total of cash inflow from financing activities 1,300,000,000 700,021,217 Cash to repay debts 1,000,000,000 600,000,000 Cash paid as dividend, profit, or interests 95,417,563 82,114,962 Other cash paid for financing activities 38,721 21 The First Quarterly Report 2017 Sub-total of cash outflow due to financing activities 1,095,456,284 682,114,962 Net cash flow generated by financing 204,543,716 17,906,255 IV. Influence of exchange rate alternation on cash and cash equivalents -86 V.Net increase of cash and cash equivalents -88,074,074 -219,123,063 Add: balance of cash and cash equivalents at the beginning of term 326,073,538 682,950,639 VI ..Balance of cash and cash equivalents at the end of term 237,999,464 463,827,576 II. Auditor‘s report If the 1st quarterly report been audited [] Yes [V] No The 1st quarterly report has not been audited. 22