The First Quarterly Report 2018 Guangdong Electric Power Development Co., Ltd. The First Quarterly Report 2018 April 2018 1 The First Quarterly Report 2018 I 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 Zhou Xi’an Director Due to business Rao Subo Zhang Xueqiu Director Due to business Ma Xiaoqian Mr. Huang Zhenhai, Person in charge of the Company, Mr.Liu Wei , 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) 5,812,535,688 5,554,665,288 4.64% Net profit attributable to the shareholders of 5,745,879 -115,409,510 104.98% the listed company(RMB) Net profit after deducting of non-recurring gain/loss attributable to the shareholders of 4,330,364 -125,128,941 103.46% listed company(RMB) Cash flow generated by business operation, 1,540,043,756 475,755,783 223.70% net(RMB) Basic earning per share(RMB/Share) 0.001 -0.022 104.55% Diluted gains per 0.001 -0.022 104.55% share(RMB/Share)(RMB/Share) Weighted average return on equity(%) 0.02% -0.49% 0.51% Changes of this period-end End of this period End of last period over same period-end of last year(%) Gross assets(RMB) 70,852,027,159 71,007,415,323 -0.22% Net assets attributable to the shareholders of 23,694,287,612 23,695,190,653 0% the listed company(RMB) Items and amount of non-current gains and losses 2 The First Quarterly Report 2018 √ 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 -74,138 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 851,696 state’s policies) Other non-operating income and expenditure except for the 3,095,397 aforementioned items Less: Amount of influence of income tax 1,668,627 Influenced amount of minor shareholders’ equity (after tax) 788,813 Total 1,415,515 -- 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 2018 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 99,743 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 State-owned Shenzhen Guangfa Electric Power Investment Co., Ltd. 2.22% 116,693,602 legal person State-owned Guangdong Electric Power Development Corporation 1.80% 94,367,341 legal person Domestic Non-State Harbin Daoli District Charity Foundation 0.79% 41,633,830 owned legal person Domestic Li Zhuo Natural 0.60% 31,745,043 person Domestic Non-State National Social Security Fund 103 portfolio 0.48% 24,994,982 owned legal person Domestic Non-State Harbin Hali Industry Co., Ltd. 0.42% 22,068,565 owned legal person Domestic Zheng Jianqun Natural 0.41% 21,681,998 person CHINA INT'L CAPITAL CORP HONG KONG Overseas 0.29% 15,316,067 SECURITIES LTD Legal person Shares held by the Top 10 Shareholders of Non-restricted shares Number of the Share type Shareholders’ Names non-restricted shares held Share type Quantity Guangdong Yudean Group Co., Ltd. 1,644,662,664 RMB Common shares China Securities Finance Co., Ltd. 145,748,980 RMB Common shares Shenzhen Guangfa Electric Power Investment Co., Ltd. 116,693,602 RMB Common shares Guangdong Electric Power Development Corporation 94,367,341 RMB Common shares Harbin Daoli District Charity Foundation 41,633,830 RMB Common shares Li Zhuo 31,745,043 RMB Common shares National Social Security Fund 103 portfolio 24,994,982 RMB Common shares Harbin Hali Industry Co., Ltd. 22,068,565 RMB Common shares Foreign shares placed in Zheng Jianqun 21,681,998 domestic exchange 4 The First Quarterly Report 2018 CHINA INT'L CAPITAL CORP HONG KONG Foreign shares placed in 15,316,067 SECURITIES LTD domestic exchange The fourth largest shareholder Guangdong Electric Power Development Corporation is the wholly-owned subsidiaries of the largest shareholder Explanation on associated relationship or concerted action Yudean Group. These two companies have relationships; whether the of the above shareholders other shareholders have relationships or unanimous acting was unknown. The Fifth largest shareholder Harbin Daoli District Charity Foundation holds535,016 A shares of the Company through stock account with credit transaction and guarantee and holds 41,098,814 A shares through ordinary stock account, hold 41,633,830 shares of the Company's stock totally. The Sixth largest shareholder Li Zhuo holds237,720 A shares of the Note to the top 10 common stockholders involved in Company through stock account with credit transaction and guarantee margin financing & securities lending (If any) and holds31,507,323 A shares through ordinary stock account, hold 31,745,043 shares of the Company's stock totally. The Eighth largest shareholder Harbin Hali Industry Co., Ltd. holds 1,125,920 A shares of the Company through stock account with credit transaction and guarantee and holds 20,942,645 A shares through ordinary stock account, hold 22,068,565 shares of the Company's stock totally. 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 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 5 The First Quarterly Report 2018 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 company realized a net profit attributable to shareholders of the parent company of RMB 5.75 million, representing a profit turnaround compared to the last year. The reason mainly was that the demand for electricity in the society in the first quarter of 2018 went up, the company’s on-grid electricity increased and the profitability of joint ventures and associates was relatively good, resulted in a turnaround in operating performance; however, because of the high coal prices, the cost of fuel for power generation was high, which lead to that the company's operating performance was at a small profit level. II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. √ Applicable □ Not applicable 1. During the reporting period, according to Guangdong Yudean Group Co., Ltd (hereinafter referred to as “Yudean Group”) “Statement on the implementation of the commitment”, the Company and Yudean Group signed the Equity Right Entrustment Agreement, stipulating that Yudean Group entrusted the shareholder’s rights excluding the ownership, earnings right and right of disposition of the 29 underlying companies including Zhuhai SEZ Guangzhu Power Generation Co., Ltd to the Company. 2. In the reporting period, the company received the “Letter of Issuing the Work Plan of the Decommissioning of Shajiao Power Plant and the Alternative Power Supply Construction by Guangdong Development and Reform Commission” (No. 578-2018 Yue Development and Reform Commission Doc.) (hereinafter referred to as "the Work Plan"). The Work Plan stated: By the end of 2025, the decommissioning of all 10 units in Shajiao Power Plant will be completed step by step, the alternative power source will be constructed in appropriate locations, and the corresponding power grid reconstruction and the staff placement will be well completed.” Five of the 10 units mentioned above in Shajiao Power Plant are owned by Shajiao A Power Plant, a branch of the Company. According to the Work Plan, Shajiao A Power Plant No. 1 unit will be shut down before the end of 2019, and No. 2 unit and No. 3 unit will be shut down before the end of 2020, and No. 4 unit and No. 5 unit will be shut down before the end of 2023. At present, the related issues, such as the decommissioning implementation plan, the alternative power supply construction plan, the supporting grid reconstruction plan and staff placement and the land development, are still in the process of research and formulation, of which the final impact on the company is still relatively uncertain, yet the Company will make timely disclosure based on the follow-up progress. 3. In the reporting period, the Company completed the repurchase of part of the “Yudean Bonds” and the interest payment work of 2018 for the remaining corporate bonds. The number of put-back of "12 Yudean Bonds" was 11,596,935 and the repurchase amount was RMB 1,217,087,933.25 (including interests), with that the remaining number of bonds in trust was 403,065. Announcement Date of disclosure Website for disclosure Announcement on the Controlling Shareholder’s Commitment to January 3,2018 http//www.cninfo.com.cn. Perform the Related Matters Announcement on Related Transaction with Guangdong Yudean Group January 13,2018 http//www.cninfo.com.cn. 6 The First Quarterly Report 2018 Co., Ltd. Signing of the Energy Entrusting trusteeship Agreement Announcement on Receiving the Letter of Guangdong Provincial Development and Reform Commission on Printing Work Plan for February 9,2018 http//www.cninfo.com.cn. Retirement and Alternative Power Construction of Shajiao Power Plant Announcement of Concerning Payment of Corporate “12 Yudean March 13,2018 http//www.cninfo.com.cn. Bonds” Interest of 2018 Announcement on the Resale Results of Corporate Bonds “12 Yudean March 17,2018 http//www.cninfo.com.cn. Bonds” 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 No such cases in the reporting period. 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 Number of Shareholding Number of Shareholding Gain. loss Book balance Initial shares held at proportion at shares held at proportion at of the Sauce Security Stock Stock at the end of Accountin investment the beginning of the beginning the end of the the end of the reporting of the category Code Abbreviation the reporting g items cost(RMB) the reporting of the reporting reporting reporting period shares period (RMB) period(shares) period(%) period (shares) period(%) (RMB) Financial assets Trans Stock 600642 Shenergy 235,837,988 55,532,250 1.22% 55,532,250 1.22% 319,865,760 0 available feree for sales Financial Issue Shenzhen assets Stock 000027 15,890,628 12,600,000 0.32% 12,600,000 0.32% 73,584,000 0 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% 6,678,000 0 lishm available ent for sales 400,127, Total 255,328,616 69,932,250 255,328,616 69,932,250 -- 69,932,250 -- 0 760 Disclosure date for the notice of approval by the Board (If any) Disclosure date for the notice of approval by shareholders’ Meeting (If any) 7 The First Quarterly Report 2018 VI. Investment in derivatives □ Applicable √Not applicable No such cases in the reporting period. VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period □ Applicable √Not applicable No such cases in the reporting period. VIII. External guarantee get out of line □ Applicable √Not applicable No such cases in the reporting period. IX. Controlling shareholder and its related parties occupying non-business capital of the listed company □ Applicable √Not applicable No such cases in the reporting period. 8 The First Quarterly Report 2018 IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by: Guangdong Electric Power Development Co., Ltd. In RMB Items At the end of term Beginning of term Current asset: Cash and bank balances 4,449,939,409 4,996,580,490 Settlement provision Outgoing call loan Financial assets at fair value through profit or loss Derivative financial assets Notes receivable Account receivable 2,777,704,159 2,826,237,259 Advance payments 976,214,046 826,786,279 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Interest receivable 22,598,976 14,923,771 Dividend receivable Other account receivable 163,537,647 208,907,993 Securities purchased under agreements to resell Inventories 2,324,768,911 1,527,634,773 Held-for-sale assets Current portion of non-current assets 29,563,053 Other current asset 1,030,241,176 1,137,582,469 Total of current assets 11,745,004,324 11,568,216,087 Non-current assets: Loans and advances Available-for-sale financial assets 1,234,768,760 1,243,633,985 Held-to-maturity investments Long-term receivable 85,017,590 84,358,065 Long term share equity investment 5,912,779,071 5,801,006,412 Property investment 8,137,740 8,296,639 Fixed assets 40,311,020,293 40,996,206,316 Construction in progress 8,747,606,223 8,467,687,340 Engineering material 5,588,696 35,869,033 Fixed assets pending for disposal 29,044,758 14,662,233 Productive biological assets Gas & petrol Intangible assets 1,653,100,455 1,665,784,490 Research and Development Expenditures Goodwill 27,486,780 27,486,780 Long-term prepaid expenses 26,395,522 27,007,371 Deferred income tax 417,570,205 372,553,039 Other non-current asset 648,506,742 694,647,533 9 The First Quarterly Report 2018 Total of non-current assets 59,107,022,835 59,439,199,236 Total of assets 70,852,027,159 71,007,415,323 Current liabilities Short-term bank loan facilities 9,550,000,000 9,270,000,000 Borrowings from central bank Deposits and placements from other financial institutions Placement from banks and other financial institution Financial liabilities at fair value through profit and loss Derivative financial liabilities Notes payable 379,154,349 297,611,800 Account payable 3,348,763,049 2,219,027,261 Advances from customers 276,713 1,938,223 Securities sold under agreement to repurchase Fees and commissions payable Payroll payable 183,564,028 157,738,628 Taxes and surcharges payable 94,725,607 277,285,402 Interest payable 100,067,768 98,553,104 Dividend payable 9,703,930 9,703,930 Other payable 3,704,603,737 3,908,512,671 Reinsurance amounts payable Provision of insurance contract Securities brokering Securities underwriting Held-for-sale liabilities Current portion of non-current liabilities 2,127,883,462 3,012,690,360 Other current liability 56,659,205 Total of current liability 19,555,401,848 19,253,061,379 Non-current liabilities: Long-term bank loan facilities 19,205,618,292 19,465,723,869 Bond payable 736,770,042 698,168,211 Including:preferred stock Perpetual capital securities Long-term payable 1,487,690,049 1,548,259,241 Long-term employee benefits payable 84,237,719 91,622,907 Grants payable 64,275,954 64,605,011 Provisions Deferred income 142,520,262 142,520,263 Deferred tax liabilities 23,994,623 24,188,860 Other non-current liabilities 20,405,569 16,405,569 Total non-current liabilities 21,765,512,510 22,051,493,931 Total of liability 41,320,914,358 41,304,555,310 Equity Share capital 5,250,283,986 5,250,283,986 Other equity instrument Including:preferred stock Perpetual capital securities Reserves 5,004,250,685 5,004,250,685 Less: treasury shares Other comprehensive income 130,352,605 137,001,523 Specialized reserve Surplus reserves 7,590,363,724 7,590,363,724 10 The First Quarterly Report 2018 General risk reserve Retained earnings 5,719,036,612 5,713,290,735 Equity contributable to parent company 23,694,287,612 23,695,190,653 Minority interests 5,836,825,189 6,007,669,360 Total equity 29,531,112,801 29,702,860,013 Total liabilities and equity 70,852,027,159 71,007,415,323 Legal Representative: Huang Zhenhai Person in charge of accounting:Liu Wei Accounting Dept Leader: Meng Fei 2.Parent Company Balance Sheet In RMB Items Year-end balance Year-beginning balance Current asset: Cash and bank balances 243,706,011 429,724,538 Financial assets at fair value through profit or loss Derivative financial assets Notes receivable Account receivable 207,244,177 195,462,150 Advance payments 57,222,822 57,189,222 Interest receivable 3,082,612 1,698,504 Dividend receivable 11,536,791 17,536,791 Other receivable 11,215,680 27,984,304 Inventories 150,144,924 151,849,683 Held-for-sale assets Current portion of non-current assets Other current asset Total of current assets 684,153,017 881,445,192 Non-current assets: Available-for-sale financial assets 1,234,768,760 1,243,633,985 Held-to-maturity investments Long-term receivable 401,460,000 401,460,000 Long term share equity investment 23,296,783,329 23,370,412,702 Property investment 8,137,740 8,296,639 Fixed assets 1,027,316,485 1,054,459,265 Construction in progress 74,465,838 49,949,168 Engineering material Fixed assets pending for disposal 132,629 Productive biological assets Gas & petrol Intangible assets 87,706,111 88,660,312 Research and Development Expenditures Goodwill Long-term prepaid expenses Deferred income tax 58,034,880 43,591,562 Other non-current asset 356,004,000 356,004,000 Total of non-current assets 26,544,809,772 26,616,467,633 Total of assets 27,228,962,789 27,497,912,825 Current liabilities Short-term bank loan facilities 2,630,000,000 1,700,000,000 Financial liabilities at fair value through profit and loss 11 The First Quarterly Report 2018 Derivative financial liabilities Notes payable Account payable 105,944,113 221,325,935 Advances from customers Payroll payable 31,741,206 32,124,015 Tax payable 22,404,617 38,907,195 Interest payable 8,599,890 49,765,772 Dividend payable 9,703,930 9,703,930 Other payable 107,452,931 119,738,967 Held-for-sale liabilities Current portion of non-current liabilities 1,197,935,476 Other current liability Total of current liability 2,915,846,687 3,369,501,290 Non-current liabilities: Long-term bank loan facilities 1,500,000,000 1,500,000,000 Bond payable 38,480,190 Including:preferred stock Perpetual capital securities Long-term payable Long-term employee benefits 21,524,778 22,265,631 payable Grants payable 8,775,514 8,775,514 Provisions Deferred income 53,869,596 53,869,596 Deferred income tax Other non-current liabilities Total of Non-current liabilities 1,622,650,078 1,584,910,741 Total of liability 4,538,496,765 4,954,412,031 Equity Share capital 5,250,283,986 5,250,283,986 Other equity instrument Including:preferred stock Perpetual capital securities Reserves 5,605,794,603 5,605,794,601 Less: treasury shares Other comprehensive income 130,352,605 137,001,523 Specialized reserve Surplus reserves 7,590,363,724 7,590,363,724 Retained earnings 4,113,671,106 3,960,056,960 Total equity 22,690,466,024 22,543,500,794 Total liabilities and equity 27,228,962,789 27,497,912,825 3.Consolidated Income statement In RMB Items Amount in this period Amount in last period I. Revenue 5,812,535,688 5,554,665,288 Including: business revenue 5,812,535,688 5,554,665,288 Interest income Premiums earned Fees and commissions income II. Total operating cost 5,861,825,692 5,731,755,826 Including: Cost of sales 5,380,318,561 5,232,107,151 Interest expense 12 The First Quarterly Report 2018 Fees and commissions expense Cash surrender amount Net expenses of claim settlement Net provisions for insurance contract reserves Policy dividend expenses Reinsurance expenses Business taxes and surcharges 34,361,198 46,883,420 Selling expenses 4,817,203 1,128,943 Administrative expense 134,383,821 135,333,767 Financial expenses 307,944,909 316,302,545 Impairment loss on assets Add: Gain from fair-value changes(“-“for loss) Investment income(“-“for loss) 116,815,302 71,376,143 Including: investment income from associates and joint ventures Gain on foreign exchange(“-“for loss) Assets disposition income 30,809 902,715 Other income 2,894,673 III. Operating profit(“-”for loss) 70,450,780 -104,811,680 Add:Non-operating income 3,679,083 14,694,439 Less:Non business expenses 1,189,871 2,489,993 IV. Total Profit(“-“for loss) 72,939,992 -92,607,234 Less: Income tax expense 9,063,824 25,738,798 V. Net profit (“-“for net loss) 63,876,168 -118,346,032 (I) Continuous operation net profit 63,876,168 -118,346,032 (II) Discontinued operation net profit Net profit attributable to the owners of 5,745,879 -115,409,510 parent company Minority interests 58,130,289 -2,936,522 VI. Other comprehensive income after -6,648,919 18,875,683 tax Net of profit of other comprehensive income attributable to owners of the -6,648,919 18,875,683 parent company (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pla ns of changes in net debt or net assets 2.Other comprehensive income under the equity method investee can not be reclass ified into profit or loss. (II) Other comprehensive income that will be -6,648,919 18,875,683 reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be reclassifie d into profit or loss. 2.Gains and losses from changes in fair v -6,648,919 18,875,683 alue available for sale financial assets 3.Held-to-maturity investments reclassifi ed to gains and losses of available for sal e financial assets 13 The First Quarterly Report 2018 4.The effective portion of cash flow hedg es and losses 5.Translation differences in currency fina ncial statements 6.Other Net after-tax of other comprehensive income attributable to Minority shareholders’ equity VII. Total comprehensive income 57,227,249 -99,470,349 Total comprehensive income attributable -903,040 -96,533,827 to the owner of the parent company Total comprehensive income 58,130,289 -2,936,522 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.001 -0.022 (II)Diluted earnings per share 0.001 -0.022 The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0 , last period the combined party realized RMB0 . Legal Representative: Huang Zhenhai Person in charge of accounting:Li u Wei Accounting Dept Leader: Meng Fei 4.Income statement of the Parent Company In RMB Items Amount in this period Amount in last period I.Revenue 465,311,491 380,801,562 Less:Business cost 449,858,137 381,038,604 Business tax and surcharge 1,821,322 465,610 Selling expenses 437,911 3,062 Administrative expense 18,828,427 19,688,793 Financial expenses 47,457,181 47,038,961 Impairment loss on assets Add: Gain from fair-value changes(“-“for loss) Investment income(“-“for loss) 195,076,685 75,921,316 Including: investment income from 114,290,630 71,376,143 associates and joint ventures Assets disposition income -32,933 Other income II. Operational profit(“-”for loss) 141,952,265 8,487,848 Add:Non-operating income 27,610 9,551,560 Less:Non-operating expenses 592,734 133,371 III.Total profit 141,387,141 17,906,037 Less: Income tax expense -12,227,011 -13,367,526 IV. Net profit (“-“for net loss) 153,614,152 31,273,563 (I) Continuous operation net profit 153,614,152 31,273,563 (II) Discontinued operation net profit V.Net of profit of other comprehensive i -6,648,919 18,875,683 ncome (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 14 The First Quarterly Report 2018 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under th e equity method investee can not be recl assified into profit or loss. ( II ) Other comprehensive income that will b -6,648,919 18,875,683 e reclassified into profit or loss. 1.Other comprehensive income under th e equity method investee can be reclassi fied into profit or loss. 2.Gains and losses from changes in fair -6,648,919 18,875,683 value available for sale financial assets 3.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 4.The effective portion of cash flow hed ges and losses 5.Translation differences in currency fin ancial statements 6.Other VI. Total comprehensive income 146,965,233 50,149,246 VII. Earnings per share: (I)Basic earnings per share (II)Diluted earnings per share 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 6,909,344,782 6,534,220,810 rending of services 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 4,180,540 232,947 Other cash received from business 102,634,309 38,308,102 15 The First Quarterly Report 2018 operation Sub-total of cash inflow 7,016,159,631 6,572,761,859 Cash paid for purchasing of 4,669,079,682 5,217,883,087 merchandise and services 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 376,566,617 354,132,647 Taxes paid 309,033,731 361,679,696 Other cash paid for business activities 121,435,845 163,310,646 Sub-total of cash outflow from 5,476,115,875 6,097,006,076 business activities Cash flow generated by business 1,540,043,756 475,755,783 operation, net II.Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains Net cash retrieved from disposal of fixed assets, intangible assets, and 10,100 1,062,462 other 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 10,100 11,562,462 investment activities Cash paid for construction of fixed assets, intangible assets and other 657,061,177 607,704,985 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 657,061,177 607,830,679 investment activities Net cash flow generated by investment -657,051,077 -596,268,217 III.Cash flow generated by financing Cash received as investment 4,000,000 Incl: Cash received as investment from 4,000,000 minor shareholders Cash received as loans 2,446,395,253 3,030,404,699 Cash received from bond placing Other financing –related ash received Sub-total of cash inflow from financing 2,450,395,253 3,030,404,699 activities Cash to repay debts 3,279,948,065 2,972,122,871 Cash paid as dividend, profit, or 462,961,076 419,903,293 interests Incl: Dividend and profit paid by 16 The First Quarterly Report 2018 subsidiaries to minor shareholders Other cash paid for financing activities 137,119,426 6,440,107 Sub-total of cash outflow due to 3,880,028,567 3,398,466,271 financing activities Net cash flow generated by financing -1,429,633,314 -368,061,572 IV. Influence of exchange rate alternation on cash and cash -446 -86 equivalents V.Net increase of cash and cash -546,641,081 -488,574,092 equivalents Add: balance of cash and cash 4,996,580,490 5,184,873,650 equivalents at the beginning of term VI ..Balance of cash and cash 4,449,939,409 4,696,299,558 equivalents at the end of term 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 Cash received from sales of goods or 543,833,558 506,722,273 rending of services Tax returned 232,947 Other cash received from business 16,238,994 4,345,031 operation Sub-total of cash inflow 560,072,552 511,300,251 Cash paid for purchasing of 557,730,970 662,899,601 merchandise and services Cash paid to staffs or paid for staffs 72,942,857 76,886,841 Taxes paid 17,395,705 9,375,647 Other cash paid for business activities 21,649,266 9,965,255 Sub-total of cash outflow from 669,718,798 759,127,344 business activities Cash flow generated by business -109,646,246 -247,827,093 operation, net II.Cash flow generated by investing Cash received from investment 187,920,000 100,000,000 retrieving Cash received as investment gains 85,567,058 4,295,833 Net cash retrieved from disposal of fixed assets, intangible assets, and 10,100 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 273,497,158 104,295,833 investment activities Cash paid for construction of fixed assets, intangible assets 29,854,267 17,484,290 and other long-term assets Cash paid as investment 131,602,154 Net cash received from subsidiaries and other operational units Other cash paid for investment activities 17 The First Quarterly Report 2018 Sub-total of cash outflow due to 29,854,267 149,086,444 investment activities Net cash flow generated by investment 243,642,891 -44,790,611 III.Cash flow generated by financing Cash received as investment Cash received as loans 1,930,000,000 1,300,000,000 Cash received from bond placing Other financing –related ash received Sub-total of cash inflow from 1,930,000,000 1,300,000,000 financing activities Cash to repay debts 2,159,693,500 1,000,000,000 Cash paid as dividend, profit, or 90,010,272 95,417,563 interests Other cash paid for financing activities 310,954 38,721 Sub-total of cash outflow due to 2,250,014,726 1,095,456,284 financing activities Net cash flow generated by financing -320,014,726 204,543,716 IV. Influence of exchange rate alternation on cash and cash -446 -86 equivalents V.Net increase of cash and cash -186,018,527 -88,074,074 equivalents Add: balance of cash and cash 429,724,538 326,073,538 equivalents at the beginning of term VI ..Balance of cash and cash 243,706,011 237,999,464 equivalents at the end of term II. Auditor‘s report Whether the Q1 report is audited □ Yes √ No The Q1 Report is not audited. 18