The 3rd Quarterly Report 2019(Full Text) Stock code:200771 Stock ID:Hangqilun B Announcement No.2019-58 Hangzhou Steam Turbine Co., Ltd. The Third Quarterly Report 2019(Full Text) (Stock code:200771) October 2019 1 The 3rd Quarterly Report 2019(Full Text) 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 of the directors presented the board meeting at which this Quarterly Report was examined. Mr.Zheng Bin, Person in charge of the Company, Mr. Zhao Jiamao, Person in charge of accounting works, Mr.Jin Can , Chief of the accounting organ (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this Quarterly Report . 2 The 3rd Quarterly Report 2019(Full Text) II. Basic information about the company I. Main financial data and indices Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data. No As at the end of the reporting Changed (%)over As at the end of last year period end of prev. year Gross assets(Yuan) 12,212,544,839.66 11,569,169,903.81 5.56% Net assets attributable to the shareholders of the listed company 6,387,256,350.19 6,007,540,929.16 6.32% (Yuan) Increase/decrease Between beginning of over the same Changed (%)over Reporting period the year to the end of period of last year end of prev. year the report period (%) Operating income(Yuan) 1,259,472,944.08 13.60% 3,179,654,647.11 -6.28% Net profit attributable to the shareholders of the listed company 128,559,248.99 -21.28% 288,884,381.99 -1.01% (Yuan) Net profit after deducting of non-recurring gain/loss attributable to 116,129,508.20 -19.37% 247,703,697.88 6.09% the shareholders of listed company (Yuan) Cash flow generated by business -- -- 163,279,420.58 -72.79% operation, net(Yuan) Basic earning per share(Yuan/Share) 0.17 -22.73% 0.38 -2.56% Diluted gains per share(Yuan/Share) 0.17 -22.73% 0.38 -2.56% Weighted average income/asset ratio 2.04% -0.69% 4.66% -0.23% (%) Items and amount of non-current gains and losses In RMB Amount (Year-beginning to the Non-recurring gain and loss items Notes end of the report period.) Non-current asset disposal gain/loss(including the write-off part for which assets impairment -326,973.05 provision is made) 3 The 3rd Quarterly Report 2019(Full Text) Govemment subsidy recognized in current gain and loss(excluding those closely related to the 25,729,477.67 Company’s business and granted under the state’s policies) Gain/loss from debt reorganization -2,196,787.49 In addition to normal business with the company effective hedging related business, holders of tradable financial assets, transactions and financial liabilities arising from changes in fair value 29,778,787.02 gains and losses, as well as the disposal of trading of financial assets, trading financial liabilities and available-for-sale financial assets gains return on investment Net amount of non-operating income and expense except the aforesaid items 1,716,098.66 Less: .Amount of influence of income tax 9,036,858.65 Influence on minority shareholders’ equity (after tax) 4,483,060.05 Total 41,180,684.11 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies 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. None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 4 The 3rd Quarterly Report 2019(Full Text) II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 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 with the Total number of common 13,631 voting power recovered at the end of the 0 shareholders at the period-end 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 % of the Quantity held shares Hangzhou Steam Turbine Power Group Co., State-owned legal 63.64% 479,824,800 479,824,800 Ltd. person VANGUARD TOTAL INTERNATIONAL Foreign legal person 0.71% 5,357,736 0 STOCK INDEX FUND VANGUARD EMERGING MARKETS Foreign legal person 0.63% 4,722,804 0 STOCK INDEX FUND GUOTAI JUNAN Foreign legal person 0.59% 4,423,583 0 SECURITIES(HONGKONG) LIMITED Domestic Natural Zhou Jie 0.58% 4,337,000 0 person State-owned legal China Merchants Securities (HK)Co., Ltd. 0.47% 3,555,077 0 person ISHARES CORE MSCI EMERGING Foreign legal person 0.46% 3,496,459 0 MARKETS ETF NORGES BANK Foreign legal person 0.33% 2,514,529 0 Domestic Natural Xia Zulin 0.31% 2,301,000 0 person Domestic Natural Wang Yihu 0.20% 1,488,524 0 person To 10 holders of unconditional shares Amount of Share type shares without Shareholders’ Names sales Share type Quantity restriction VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 5,357,736 Foreign shares placed 5,357,736 5 The 3rd Quarterly Report 2019(Full Text) in domestic exchange Foreign shares placed VANGUARD EMERGING MARKETS STOCK INDEX FUND 4,722,804 4,722,804 in domestic exchange Foreign shares placed GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 4,423,583 4,423,583 in domestic exchange Foreign shares placed Zhou Jie 4,337,000 4,337,000 in domestic exchange Foreign shares placed China Merchants Securities (HK)Co., Ltd. 3,555,077 3,555,077 in domestic exchange Foreign shares placed ISHARES CORE MSCI EMERGING MARKETS ETF 3,496,459 3,496,459 in domestic exchange Foreign shares placed NORGES BANK 2,514,529 2,514,529 in domestic exchange Foreign shares placed Xia Zulin 2,301,000 2,301,000 in domestic exchange Foreign shares placed Wang Yihu 1,488,524 1,488,524 in domestic exchange Foreign shares placed BOCHK INVESTMENT FUNDS-BOCHK CHINA GOLDEN DRAGON FUND 1,267,627 1,267,627 in domestic exchange (1)It is unknown to the Company if there is any relationship among the top 10 common share holders without restriction. (2) Other Shareholders. Explanation on associated relationship or concerted action of the above is not an action-in-concert” party with any of other shareholders shareholders as described by the “Administration Rules of Informational Disclosure about Change of Shareholding Statues of PLCs”. Note to the top 10 common stockholders involved in margin financing & securities Not applicable lending (If any) Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period. 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. 6 The 3rd Quarterly Report 2019(Full Text) 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period Not applicable III. Significant Events I. Changes in the principal accounting statement items and financial indications and the causes In RMB Balance sheet items Ending balance Opening balance Scale of change Causes of change Mainly due to the adjustment of the report items Transactional financial 1,030,270,000.00 0.00 according to the implementation of new assets financial standard in the current period. Mainly due to the increase in the prepaid Prepayments 497,157,397.80 370,958,990.74 34.02% equipment payment for the construction of the new plant. Mainly due to the dividends of Hangzhou Bank Dividend receivable 27,827,292.60 16,557,292.60 68.07% and the increase in pledge dividends in the current period. Mainly due to the increase of bid bond and Other account receivable 22,019,008.05 15,995,166.16 37.66% reserve fund. Mainly due to the adjustment of the report items Other current asset 48,913,537.98 1,188,747,955.74 -95.89% according to the implementation of new financial standard in the current period. Mainly due to the adjustment of the report items Available for sale of 0.00 2,130,076,555.2 -100.00% according to the implementation of new financial assets financial standard in the current period. Mainly due to the capital increase into the joint Long term share equity 10,941,439.29 8,221,439.29 33.08% venture-Zhejiang Zhongrun Gas Turbine investment Technology Co., Ltd. Mainly due to the continuous investment in the Construction in progress 726,277,749.36 454,767,328.93 59.70% construction of the new plant area in the current period. Mainly due to the adjustment of the report items Other equity instruments 2,297,345,490.70 0.00 according to the implementation of new investment financial standard in the current period. Other non-current financial Mainly due to the adjustment of the report items 180,406,134.44 0.00 assets according to the implementation of new 7 The 3rd Quarterly Report 2019(Full Text) financial standard in the current period. Mainly due to the decrease in short-term Short-term loans 97,700,000.00 139,600,000.00 -30.01% borrowings during the period. Mainly due to the decrease in interest on Interest payable 0.00 437,314.72 -100.00% borrowings that were not paid during the period. 777,253,689.21 474,876,451.26 63.67% Mainly due to the receipt of compensation for Long-term payable removal in the current period. Income statement items Amount in the Same period of last Scale of change Causes of change reporting period term Mainly due to the YOY decrease in value-added Business tax and surcharge 17,493,111.64 33,984,172.83 -48.53% tax paid during the period. Mainly due to the increase in interest income Financial expenses -18,382,223.74 -9,991,434.12 -83.98% during the period. Mainly due to decrease in the provision for impairment of assets in the current period due to Impairment loss of assets -37,549,167.26 -98,292,739.70 61.80% the debt restructuring and the recovery of long-term accounts receivable and so forth. Mainly due to decrease in the allowable exempt Non-operating income 4,831,680.19 11,253,922.23 -57.07% accounts payable in the current period due to the debt restructuring. Mainly due to the increase in compensation Non-operating expenses 5,637,262.06 3,264,511.69 72.68% expenses in the current period. Cash flow statement Items Amount in the Same period of the Scale of change Causes of change reporting period previous year Cash flow generated by Mainly due to the YOY decrease in cash receipts 163,279,420.58 600,061,531.02 -72.79% business operation, net from sales of goods during the period. Net cash flow generated by Mainly due to the decrease in newly purchased investment 160,871,735.69 -417,696,615.32 138.51% wealth management products and the decrease in total holdings in the current period. Net increasing of cash and Mainly due to the increase in dividends cash equivalents -250,913,888.08 -66,417,360.93 -277.78% distributed to external and the decrease in bank borrowings during the period. 8 The 3rd Quarterly Report 2019(Full Text) II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. Not applicable Progress in the implementation of share repurchase Not applicable Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding 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 There are no commitments that the company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period. 9 The 3rd Quarterly Report 2019(Full Text) IV. Investment in securities In RMB Gain/l Sale Cumulative oss of Stock Mode of Book value balance Changes in fair Purchase amoun Book value balance at Sauce Security Security Initial investment fair value the Accounting Abbreviati accounting at the beginning of value of the this amount in the t in the the end of the of the category code cost changes in reporti Items on measurement the reporting period period this period this reporting period shares equity ng period period Other Equity Domestic and Hangzhou 1,906,391, Self 600926 390,954,040.00 FVM 2,011,876,524.40 285,468,966.30 2,297,345,490.70 Instrument 450.70 funds foreign stocks Bank investment Other See Domestic and LUTIAN -1,631,104 000912 3,756,608.40 FVM -1,631,104.76 3,756,608.40 2,125,503.64 non-current notes HUA .76 foreign stocks financial assets below Total 394,710,648.40 -- 2,011,876,524.40 283,837,861.54 0.00 3,756,608.40 0.00 0.00 2,299,470,994.34 -- -- Disclosure Date of Announcement on Securities investment approved by the Board of Directors Disclosure Date of Announcement on Securities Investment Approved by the Shareholders Meeting (If any) VI. Entrusted financial management In RMB 10,000 Type Source Amount Unexpired balance Overdue amount 10 The 3rd Quarterly Report 2019(Full Text) Bank financing product Self funds 88,127 96,527 0 Brokerage financing Self funds 2,400.8 500 0 product Trust financing product Self funds 18,000 6,000 0 Total 108,527.8 103,027 0 Specific Circumstance of Trust Investment which is Large in single amount, low insecurity, poor in liquidity or unguaranteed in high risk In RMB 10,000 Way Actual Referent Actual Whether Is there Type of of recovery Summary of ial profit or Provision or not a Name of Trustees Type of Conf Prospectiv of profits matters and Date of Date of Capital Investment Annuali e Yield loss for for due commiss Trustees (or (or Producti Amount Source irmi and losses related Beginning Expiry Orientation zed the impairmen process ion plan Entrustees) Entrustees on ng (if any) during the query Index Yield reporting t (if any) has been in the ) Rew reporting (if any) Rate period followed future ards period Invest in creditors’ rights of real estate / other creditors’ Investmen Floa Hangzhou Disposal rights, public and private t Industrial & March March ting manageme Trust 10,000 of own bonds, public and private 7.50% 733.56 733.56 733.56 Yes No Commercial 30,2018 21,2019 profi nt capital equity instruments, Trust company t short-term/high-liquid debt instruments. Bank non-capi tal Floa Disposal preserva December March Invest in high liquid assets, ting Hangzhou Bank Bank 7,000 of own 4.35% 75.92 75.92 75.92 Yes No tion 28,2018 29,2019 debt assets, equity assets. profi capital interest t manage ment 11 The 3rd Quarterly Report 2019(Full Text) products Investment in bonds, currency market instruments, interbank deposits, trust plans that meet Bank regulatory requirements, asset non-capi income rights, currency tal market funds, bond funds and Floa preserva Disposal November November other fixed income ting CZB Bank tion 7,000 of own 4.85% 337.64 0 0 Yes No 20,2018 18,2019 instruments, asset profi interest capital securitization products, asset t manage management plans that meet ment the above investment products directions, and other financial instruments allowed by policies and regulations. Bank non-capi tal Government debt, corporate Floa preserva Disposal September bonds, inter-bank lending, ting Bank of China Bank tion 7,000 of own July 29,2019 2.95% 19.47 19.47 19.47 Yes No 2,2019 medium-term notes, financing profi interest capital bonds, etc. t manage ment products Bank non-capi Government debt, corporate Floa tal Disposal September October bonds, inter-bank lending, ting Bank of China Bank preserva 7,000 of own 2.90% 18.91 0 0 Yes No 6,2019 10,2019 medium-term notes, financing profi tion capital bonds, etc. t interest manage 12 The 3rd Quarterly Report 2019(Full Text) ment products Total 38,000 -- -- -- -- -- -- 1,185.5 828.95 -- -- -- -- Situation with the appearance of principals which can not be recovered expectedly or other existing situations which may lead to impairment Not applicable 13 The 3rd Quarterly Report 2019(Full Text) 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 No such cases in the reporting period. VIII. External guarantee get out of line □ Applicable √Not applicable IX. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period 14 The 3rd Quarterly Report 2019(Full Text) IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by::Hangzhou Steam Turbine Co., Ltd. In RMB Items September 30,2019 December 31,2018 Current asset: Monetary fund 1,474,367,079.10 1,382,392,009.59 Settlement provision Outgoing call loan Transactional financial assets 1,030,270,000.00 0.00 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable 663,773,928.40 595,089,175.22 Account receivable 2,018,581,642.30 1,940,798,255.26 Financing of receivables Prepayments 497,157,397.80 370,958,990.74 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Other account receivable 49,846,300.65 32,552,458.76 Including:Interest receivable Dividend receivable 27,827,292.60 16,557,292.60 Repurchasing of financial assets Inventories 1,977,940,204.58 2,188,121,342.87 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 48,913,537.98 1,188,747,955.74 Total of current assets 7,760,850,090.81 7,698,660,188.18 Non-current assets: Loans and payment on other’s behalf disbursed Debt investment Available for sale of financial assets 0.00 2,130,076,555.20 15 The 3rd Quarterly Report 2019(Full Text) Other investment on bonds Expired investment in possess Long-term receivable Long term share equity investment 10,941,439.29 8,221,439.29 Other equity instruments investment 2,297,345,490.70 0.00 Other non-current financial assets 180,406,134.44 0.00 Property investment Fixed assets 747,728,356.99 783,740,928.49 Construction in progress 726,277,749.36 454,767,328.93 Production physical assets Oil & gas assets Use right assets Intangible assets 274,277,500.98 279,740,756.49 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset 214,718,077.09 213,962,707.23 Other non-current asset Total of non-current assets 4,451,694,748.85 3,870,509,715.63 Total of assets 12,212,544,839.66 11,569,169,903.81 Current liabilities Short-term loans 97,700,000.00 139,600,000.00 Loan from Central Bank Borrowing funds Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable 203,383,831.40 263,897,462.79 Account payable 1,151,812,574.17 1,086,685,918.74 Advance receipts 2,552,139,715.82 2,582,234,158.36 Contract Liabilities Selling of repurchased financial assets Deposit taking and interbank deposit Entrusted trading of securities Entrusted selling of securities 16 The 3rd Quarterly Report 2019(Full Text) Employees’ wage payable 81,628,041.93 86,390,955.29 Tax payable 49,851,418.96 62,405,200.62 Other account payable 46,198,091.05 36,904,303.01 Including:Interest payable 0.00 437,314.72 Dividend payable Fees and commissions payable Reinsurance fee payable Liabilities held for sales Non-current liability due within 1 year 100,000,000.00 100,100,000.00 Other current liability Total of current liability 4,282,713,673.33 4,358,217,998.81 Non-current liabilities: Reserve fund for insurance contracts Long-term loan 22,600,000.00 22,700,000.00 Bond payable Including:preferred stock Sustainable debt Lease liability Long-term payable 777,253,689.21 474,876,451.26 Long-term remuneration payable to staff Expected liabilities Deferred income 42,435,855.35 44,675,128.30 Deferred income tax liability 287,020,975.81 244,169,946.57 Other non-current liabilities Total non-current liabilities 1,129,310,520.37 786,421,526.13 Total of liability 5,412,024,193.70 5,144,639,524.94 Owners’ equity Share capital 754,010,400.00 754,010,400.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 151,684,419.65 151,684,419.65 Less:Shares in stock Other comprehensive income 1,620,186,251.18 1,377,168,522.74 17 The 3rd Quarterly Report 2019(Full Text) Special reserve 19,636,062.06 21,020,671.47 Surplus reserves 621,112,807.78 621,112,807.78 Common risk provision Retained profit 3,220,626,409.52 3,082,544,107.52 Total of owner’s equity belong to the parent company 6,387,256,350.19 6,007,540,929.16 Minority shareholders’ equity 413,264,295.77 416,989,449.71 Total of owners’ equity 6,800,520,645.96 6,424,530,378.87 Total of liabilities and owners’ equity 12,212,544,839.66 11,569,169,903.81 Legal Representative: Zheng Bin Person-in-charge of the accounting work:Zhao Jiamao Person-in -charge of the accounting organ:Jin Can 2.Parent Company Balance Sheet In RMB Items September 30,2019 December 31,2018 Current asset: Monetary fund 1,024,800,003.89 877,357,020.98 Transactional financial assets 550,000,000.00 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable 272,048,207.93 302,284,986.43 Account receivable 1,478,540,676.14 1,374,628,210.45 Financing of receivables Prepayments 248,134,193.27 208,498,421.20 Other account receivable 34,356,195.24 19,984,760.06 Including:Interest receivable Dividend receivable 27,827,292.60 16,557,292.60 Inventories 1,372,902,913.88 1,584,030,951.83 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 890,000,000.00 Total of current assets 4,980,782,190.35 5,256,784,350.95 18 The 3rd Quarterly Report 2019(Full Text) Non-current assets: Debt investment Available for sale of financial assets 2,090,631,297.62 Other investment on bonds Expired investment in possess Long-term receivable Long term share equity investment 860,732,321.62 502,919,378.03 Other equity instruments investment 2,297,345,490.70 Other non-current financial assets 142,280,276.86 Property investment Fixed assets 431,785,349.13 448,890,495.75 Construction in progress 261,686,676.55 142,310,055.48 Production physical assets Oil & gas assets Use right assets Intangible assets 162,699,868.04 165,734,347.73 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset 163,716,346.37 163,871,631.81 Other non-current asset Total of non-current assets 4,320,246,329.27 3,514,357,206.42 Total of assets 9,301,028,519.62 8,771,141,557.37 Current liabilities Short-term loans Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable 10,000,000.00 24,200,000.00 Account payable 641,335,487.31 630,653,099.86 Advance receipts 1,695,176,632.88 1,877,069,335.29 Contract Liabilities Employees’ wage payable 52,256,774.59 43,332,523.01 Tax payable 19,132,298.76 37,809,874.53 Other account payable 30,826,263.84 24,708,959.22 Including:Interest payable 212,010.69 19 The 3rd Quarterly Report 2019(Full Text) Dividend payable Liabilities held for sales Non-current liability due within 1 year 100,000,000.00 100,000,000.00 Other current liability Total of current liability 2,548,727,457.38 2,737,773,791.91 Non-current liabilities: Long-term loan Bond payable Including:preferred stock Sustainable debt Lease liability Long-term payable 567,664,904.81 264,512,388.24 Long-term remuneration payable to staff Expected liabilities Deferred income 40,931,870.35 41,944,793.30 Deferred income tax liability 287,020,975.81 244,169,946.57 Other non-current liabilities Total non-current liabilities 895,617,750.97 550,627,128.11 Total of liability 3,444,345,208.35 3,288,400,920.02 Owners’ equity Share capital 754,010,400.00 754,010,400.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 138,953,250.09 138,953,250.09 Less:Shares in stock Other comprehensive income 1,620,432,733.09 1,377,784,111.74 Special reserve 7,136,365.23 7,609,505.31 Surplus reserves 602,356,402.65 602,356,402.65 Retained profit 2,733,794,160.21 2,602,026,967.56 Total of owners’ equity 5,856,683,311.27 5,482,740,637.35 Total of liabilities and owners’ equity 9,301,028,519.62 8,771,141,557.37 Legal Representative: Zheng Bin 20 The 3rd Quarterly Report 2019(Full Text) Person-in-charge of the accounting work:Zhao Jiamao Person-in -charge of the accounting organ:Jin Can 3.Consolidated Income statement of the Report period In RMB Items Amount in this period Amount in last period I. Turnover 1,259,472,944.08 1,108,687,686.30 Including:Operating income 1,259,472,944.08 1,108,687,686.30 Interest income 0.00 0.00 Insurance fee earned 0.00 0.00 Fee and commission received 0.00 0.00 II. Total operating costs 1,063,402,412.11 928,441,577.15 Including:Operating costs 833,112,502.91 698,663,985.04 Interest expense 0.00 0.00 Fee and commission paid 0.00 0.00 Insurance discharge payment 0.00 0.00 Net claim amount paid 0.00 0.00 Appropriation of deposit for duty, net 0.00 0.00 Insurance policy dividend paid 0.00 0.00 Reinsurance expenses 0.00 0.00 Business tax and surcharge 4,034,970.65 4,164,943.79 Sales expense 53,828,704.09 44,033,676.52 Administrative expense 128,452,938.62 119,519,553.39 R & D expense 58,101,016.42 72,054,029.60 Financial expenses -14,127,720.58 -9,994,611.19 Including:Interest expense 3,049,492.86 3,615,328.64 Interest income 8,604,496.65 2,712,767.25 Add:Other income 9,967,888.64 2,529,767.83 Investment gain(“-”for loss) 2,238,832.77 70,813,800.50 Including: investment gains from affiliates 0.00 0.00 Financial assets measured at amortized cost cease to be recognized as 0.00 0.00 income Gains from currency exchange 0.00 0.00 Net exposure hedging income 0.00 0.00 21 The 3rd Quarterly Report 2019(Full Text) Changing income of fair value -156,349.42 0.00 Credit impairment loss 0.00 0.00 Impairment loss of assets -43,972,973.96 -55,181,386.88 Assets disposal income 0.00 -3,512.61 III. Operating profit(“-”for loss) 164,147,930.00 198,404,777.99 Add :Non-operating income 4,086,841.03 7,064,195.75 Less: Non-operating expenses 416,499.78 673,357.15 IV. Total profit(“-”for loss) 167,818,271.25 204,795,616.59 Less:Income tax expenses 20,942,187.32 22,054,153.14 V. Net profit 146,876,083.93 182,741,463.45 (I) Classification by business continuity 1.Net continuing operating profit 146,876,083.93 182,741,463.45 2.Termination of operating net profit 0.00 0.00 (II) Classification by ownership 1.Net profit attributable to the owners of parent company 128,559,248.99 163,313,243.33 2.Minority shareholders’ equity 18,316,834.94 19,428,220.12 VI. Net after-tax of other comprehensive income 28,052,616.28 -23,360,682.96 Net of profit of other comprehensive income attributable to owners of the p 27,868,098.54 -23,405,956.89 arent company. (I)Other comprehensive income items that will not be reclassified into 27,731,271.01 0.00 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net debt or net ass 0.00 0.00 ets 2.Other comprehensive income under the equity method investee can not b 0.00 0.00 e reclassified into profit or loss. 3. Changes in the fair value of investments in other equity instruments 27,731,271.01 0.00 4. Changes in the fair value of the company’s credit risks 0.00 0.00 5.Other 0.00 0.00 (II) 136,827.53 -23,405,956.89 Other comprehensive income that will be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be rec 0.00 0.00 lassified into profit or loss. 2. Changes in the fair value of investments in other debt obligations 0.00 0.00 0.00 -23,439,529.39 22 The 3rd Quarterly Report 2019(Full Text) 3.Gains and losses from changes in fair value available for sale financial as sets 4. Other comprehensive income arising from the reclassification of 0.00 0.00 financial assets 5.Held-to-maturity investments reclassified to gains and losses of available 0.00 0.00 for sale financial assets 6. Allowance for credit impairments in investments in other debt 0.00 0.00 obligations 7. Reserve for cash flow hedges 0.00 0.00 8. Translation differences in currency financial statements 136,827.53 33,572.50 9.Other 0.00 0.00 Net of profit of other comprehensive income attributable to Minority 184,517.74 45,273.93 shareholders’ equity VII. Total comprehensive income 174,928,700.21 159,380,780.49 Total comprehensive income attributable to the owner of the parent 156,427,347.53 139,907,286.44 company Total comprehensive income attributable minority shareholders 18,501,352.68 19,473,494.05 VIII. Earnings per share (I)Basic earnings per share 0.17 0.22 (II)Diluted earnings per share 0.17 0.22 Legal Representative: Zheng Bin Person-in-charge of the accounting work:Zhao Jiamao Person-in -charge of the accounting organ:Jin Can 4.Income statement of the Parent Company of the Report period In RMB Items Amount in this period Amount in last period I. Revenue 819,933,432.91 698,411,449.47 Including:Operating costs 550,786,723.53 422,591,187.82 Business tax and surcharge 656,680.27 853,658.87 Sales expense 29,989,897.19 28,830,027.49 Administrative expense 85,386,581.72 78,734,803.39 R & D expense 34,623,248.26 49,502,603.39 23 The 3rd Quarterly Report 2019(Full Text) Financial expenses -14,211,732.34 -9,515,143.09 Including:Interest expenses 1,386,892.71 941,722.22 Interest income 6,570,709.61 1,672,779.68 Add:Other income 8,461,395.92 1,603,129.49 Investment gain(“-”for loss) 467,203.13 101,614,644.02 Including: investment gains from affiliates Financial assets measured at amortized cost cease to be recognized as income Net exposure hedging income Changing income of fair value -156,349.42 Credit impairment loss Impairment loss of assets -44,516,274.64 -49,956,816.30 Assets disposal income II. Operating profit(“-”for loss) 96,958,009.27 180,675,268.81 Add :Non-operating income 2,744,198.08 6,804,403.21 Less:Non -operating expenses -571,413.09 III. Total profit(“-”for loss) 100,273,620.44 187,479,672.02 Less:Income tax expenses 15,194,105.20 14,396,702.89 IV. Net profit 85,079,515.24 173,082,969.13 1.Net continuing operating profit 85,079,515.24 173,082,969.13 2.Termination of operating net profit 0.00 0.00 V. Net after-tax of other comprehensive income 27,731,271.01 -23,439,529.39 (I)Other comprehensive income items that will not be reclassified into 27,731,271.01 0.00 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net debt or net ass 0.00 0.00 ets 2.Other comprehensive income under the equity method investee can not b 0.00 0.00 e reclassified into profit or loss. 3. Changes in the fair value of investments in other equity instruments 27,731,271.01 0.00 4. Changes in the fair value of the company’s credit risks 0.00 0.00 5.Other 0.00 0.00 (II) 0.00 -23,439,529.39 Other comprehensive income that will be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be rec 0.00 0.00 lassified into profit or loss. 24 The 3rd Quarterly Report 2019(Full Text) 2. Changes in the fair value of investments in other debt obligations 0.00 0.00 3. Gains and losses from changes in fair value available for sale financial asse 0.00 -23,439,529.39 ts 4. Other comprehensive income arising from the reclassification of 0.00 0.00 financial assets 5.Held-to-maturity investments reclassified to gains and losses of available 0.00 0.00 for sale financial assets 6. Allowance for credit impairments in investments in other debt 0.00 0.00 obligations 7. Reserve for cash flow hedges 0.00 0.00 8. Translation differences in currency financial statements 0.00 0.00 9.Other 0.00 0.00 VI. Total comprehensive income 112,810,786.25 149,643,439.74 VII. Earnings per share (I)Basic earnings per share (II)Diluted earnings per share Legal Representative: Zheng Bin Person-in-charge of the accounting work:Zhao Jiamao Person-in -charge of the accounting organ:Jin Can 5. Consolidated Income statement between the beginning of the year and end of the report period In RMB Items Amount in this period Amount in last period I. Turnover 3,179,654,647.11 3,392,818,668.43 Including:Operating income 3,179,654,647.11 3,392,818,668.43 Interest income Insurance fee earned Commission charge and commission income II. Total operating costs 2,877,835,659.02 3,036,194,058.93 Including:Operating costs 2,199,516,904.17 2,310,780,137.30 Interest expense Fee and commission paid 25 The 3rd Quarterly Report 2019(Full Text) Insurance discharge payment Net claim amount paid Appropriation of deposit for duty,net Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 17,493,111.64 33,984,172.83 Sales expense 140,724,643.41 121,041,978.74 Administrative expense 363,621,264.60 356,975,613.55 R & D expense 174,861,958.94 223,403,590.63 Financial expenses -18,382,223.74 -9,991,434.12 Including:Interest expense 10,212,822.58 9,518,675.26 Interest income 22,290,646.94 8,999,590.97 Add:Other income 25,729,477.67 22,867,462.28 Investment gain(“-”for loss) 101,699,155.43 107,958,407.94 Including: investment gains from affiliates Financial assets measured at amortized cost cease to be recognized as income Gains from currency exchange Net exposure hedging income Changing income of fair value -1,631,104.76 0.00 Credit impairment loss Impairment loss of assets -37,549,167.26 -98,292,739.70 Assets disposal income -1,183.02 -3,512.61 III. Operating profit(“-”for loss) 390,066,166.15 389,154,227.41 Add :Non-operating income 4,831,680.19 11,253,922.23 Less: Non-operating expense 5,637,262.06 3,264,511.69 IV. Total profit(“-”for loss) 389,260,584.28 397,143,637.95 Less:Income tax expenses 57,717,586.61 54,032,024.96 V. Net profit 331,542,997.67 343,111,612.99 (I) Classification by business continuity 1.Net continuing operating profit 331,542,997.67 343,111,612.99 2.Termination of operating net profit (II) Classification by ownership 1.Net profit attributable to the owners of parent company 288,884,381.99 291,823,837.34 26 The 3rd Quarterly Report 2019(Full Text) 2.Minority shareholders’ equity 42,658,615.68 51,287,775.65 VI. Net after-tax of other comprehensive income 243,515,485.04 -96,070,528.59 Net of profit of other comprehensive income attributable to owners of the p 243,017,728.44 -96,069,678.89 arent company. (I)Other comprehensive income items that will not be reclassified into 242,648,621.35 0.00 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. 3. Changes in the fair value of investments in other equity instruments 242,648,621.35 4. Changes in the fair value of the company’s credit risks 5.Other (II) 369,107.09 -96,069,678.89 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. Changes in the fair value of investments in other debt obligations 3.Gains and losses from changes in fair value available for sale financial as -96,069,048.81 sets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency financial statements 369,107.09 -630.08 9.Other Net of profit of other comprehensive income attributable to Minority 497,756.60 -849.70 shareholders’ equity VII. Total comprehensive income 575,058,482.71 247,041,084.40 Total comprehensive income attributable to the owner of the parent 531,902,110.43 195,754,158.45 company 27 The 3rd Quarterly Report 2019(Full Text) Total comprehensive income attributable minority shareholders 43,156,372.28 51,286,925.95 VIII. Earnings per share (I)Basic earnings per share 0.38 0.39 (II)Diluted earnings per share 0.38 0.39 Legal Representative: Zheng Bin Person-in-charge of the accounting work:Zhao Jiamao Person-in -charge of the accounting organ:Jin Can 6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I. Revenue 2,021,367,165.14 2,189,150,333.95 Including:Operating costs 1,419,479,492.96 1,515,016,894.16 Business tax and surcharge 7,626,103.56 20,834,534.64 Sales expense 78,039,858.11 70,905,475.62 Administrative expense 245,306,228.86 233,577,791.35 R & D expense 106,667,412.13 161,617,772.84 Financial expenses -21,470,371.54 -10,794,244.88 Including:Interest expenses 4,691,534.25 3,846,459.27 Interest income 18,593,178.48 5,902,263.69 Add:Other income 13,917,270.04 19,859,416.82 Investment gain(“-”for loss) 153,015,943.33 199,260,434.93 Including: investment gains from affiliates Financial assets measured at amortized cost cease to be recognized as income Net exposure hedging income Changing income of fair value -1,631,104.76 Credit impairment loss Impairment loss of assets -42,320,934.82 -82,930,149.30 Assets disposal income II. Operating profit(“-”for loss) 308,699,614.85 334,181,812.67 Add :Non-operating income 3,376,160.54 10,929,928.48 Less:Non -operating expenses 2,332,671.26 991,089.95 28 The 3rd Quarterly Report 2019(Full Text) III. Total profit(“-”for loss) 309,743,104.13 344,120,651.20 Less:Income tax expenses 27,173,831.49 28,421,452.77 IV. Net profit 282,569,272.64 315,699,198.43 1.Net continuing operating profit 282,569,272.64 315,699,198.43 2.Termination of operating net profit V. Net after-tax of other comprehensive income 242,648,621.35 -96,069,048.81 (I)Other comprehensive income items that will not be reclassified into 242,648,621.35 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net debt or net a ssets 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. 3. Changes in the fair value of investments in other equity instruments 242,648,621.35 4. Changes in the fair value of the company’s credit risks 5.Other (II) -96,069,048.81 Other comprehensive income that will be reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be r eclassified into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3. Gains and losses from changes in fair value available for sale financial as -96,069,048.81 sets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassified to gains and losses of availabl e for sale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency financial statements 9.Other VI. Total comprehensive income 525,217,893.99 219,630,149.62 VII. Earnings per share (I)Basic earnings per share (II)Diluted earnings per share 29 The 3rd Quarterly Report 2019(Full Text) Legal Representative: Zheng Bin Person-in-charge of the accounting work:Zhao Jiamao Person-in -charge of the accounting organ:Jin Can 7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period 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 2,401,489,904.17 2,922,174,240.29 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 Cash received from interest, commission charge and commission Net increase of inter-bank fund received Net increase of repurchasing business Net cash received by agent in securities trading Tax returned 9,452,246.56 4,436,443.28 Other cash received from business operation 38,089,833.69 23,972,719.40 Sub-total of cash inflow 2,449,031,984.42 2,950,583,402.97 Cash paid for purchasing of merchandise and services 1,390,790,562.36 1,410,074,595.43 Net increase of client trade and advance Net increase of savings in central bank and brother company Cash paid for original contract claim Net increase for Outgoing call loan Cash paid for interest, processing fee and commission Cash paid for policy dividend Cash paid to staffs or paid for staffs 535,189,229.29 546,423,474.68 Taxes paid 206,236,487.81 268,804,298.07 30 The 3rd Quarterly Report 2019(Full Text) Other cash paid for business activities 153,536,284.38 125,219,503.77 Sub-total of cash outflow from business activities 2,285,752,563.84 2,350,521,871.95 Net cash generated from /used in operating activities 163,279,420.58 600,061,531.02 II. Cash flow generated by investing Cash received from investment retrieving 1,319,400.00 101,314,432.00 Cash received as investment gains 90,647,265.02 98,301,115.34 Net cash retrieved from disposal of fixed assets, intangible 267,093.28 4,138.00 assets, and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 2,435,058,131.23 3,373,416,055.08 Sub-total of cash inflow due to investment activities 2,527,291,889.53 3,573,035,740.42 Cash paid for construction of fixed assets, intangible assets and 308,397,153.84 323,721,857.46 other long-term assets Cash paid as investment 64,120,000.00 67,000,000.00 Net increase of loan against pledge Net cash received from subsidiaries and other operational units Other cash paid for investment activities 1,993,903,000.00 3,600,010,498.28 Sub-total of cash outflow due to investment activities 2,366,420,153.84 3,990,732,355.74 Net cash flow generated by investment 160,871,735.69 -417,696,615.32 III.Cash flow generated by financing Cash received as investment Including: Cash received as investment from minor shareholders Cash received as loans 97,700,000.00 144,800,000.00 Other financing –related cash received Sub-total of cash inflow from financing activities 97,700,000.00 144,800,000.00 Cash to repay debts 139,800,000.00 102,800,000.00 Cash paid as dividend, profit, or interests 206,283,221.41 105,886,694.26 Including: Dividend and profit paid by subsidiaries to minor shareholders Other cash paid for financing activities 2,530,666.67 2,530,666.67 Sub-total of cash outflow due to financing activities 348,613,888.08 211,217,360.93 Net cash flow generated by financing -250,913,888.08 -66,417,360.93 IV. Influence of exchange rate alternation on cash and cash 5,489,068.91 4,374,942.68 31 The 3rd Quarterly Report 2019(Full Text) equivalents V.Net increase of cash and cash equivalents 78,726,337.10 120,322,497.45 Add: balance of cash and cash equivalents at the beginning of 1,262,186,817.20 1,222,677,495.94 term VI ..Balance of cash and cash equivalents at the end of term 1,340,913,154.30 1,342,999,993.39 Legal Representative: Zheng Bin Person-in-charge of the accounting work:Zhao Jiamao Person-in -charge of the accounting organ:Jin Can 8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period 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 1,270,950,290.66 1,732,346,257.32 Tax returned 1,710,862.98 Other cash received from business operation 21,046,261.46 8,454,029.21 Sub-total of cash inflow 1,291,996,552.12 1,742,511,149.51 Cash paid for purchasing of merchandise and services 714,774,061.03 930,857,428.18 Cash paid to staffs or paid for staffs 348,781,348.27 363,539,423.10 Taxes paid 108,690,832.97 162,465,388.01 Other cash paid for business activities 63,232,732.77 39,414,332.67 Sub-total of cash outflow from business activities 1,235,478,975.04 1,496,276,571.96 Net cash generated from /used in operating activities 56,517,577.08 246,234,577.55 II.Cash flow generated by investing Cash received from investment retrieving 100,000,000.00 Cash received as investment gains 141,974,518.67 189,603,142.33 Net cash retrieved from disposal of fixed assets, intangible assets, 242,600.00 and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 1,236,201,629.52 2,429,775,072.51 Sub-total of cash inflow due to investment activities 1,378,418,748.19 2,719,378,214.84 Cash paid for construction of fixed assets, intangible assets 136,069,232.99 120,259,505.35 32 The 3rd Quarterly Report 2019(Full Text) and other long-term assets Cash paid as investment 419,212,943.59 66,000,000.00 Net cash received from subsidiaries and other operational units Other cash paid for investment activities 582,000,000.00 2,480,000,000.00 Sub-total of cash outflow due to investment activities 1,137,282,176.58 2,666,259,505.35 Net cash flow generated by investment 241,136,571.61 53,118,709.49 III. Cash flow generated by financing Cash received as investment Cash received as loans Other financing –related ash received Sub-total of cash inflow from financing activities Cash to repay debts Cash paid as dividend, profit, or interests 155,705,624.93 41,558,617.59 Other cash paid for financing activities Sub-total of cash outflow due to financing activities 155,705,624.93 41,558,617.59 Net cash flow generated by financing -155,705,624.93 -41,558,617.59 IV. Influence of exchange rate alternation on cash and cash 5,494,459.15 4,362,150.46 equivalents V.Net increase of cash and cash equivalents 147,442,982.91 262,156,819.91 Add: balance of cash and cash equivalents at the beginning of 877,357,020.98 654,407,180.33 term VI ..Balance of cash and cash equivalents at the end of term 1,024,800,003.89 916,564,000.24 Legal Representative: Zheng Bin Person-in-charge of the accounting work:Zhao Jiamao Person-in -charge of the accounting organ:Jin Can II Adjustments to the Financial Statements 1. Adjustment of the relevant items of the financial statements at the current year beginning according to the new standards for financial instruments, the new standards for revenues and the new standards for lease implemented commencing from year 2019 Consolidated balance sheet In RMB 33 The 3rd Quarterly Report 2019(Full Text) Amount involved in the Items December 31,2018 January 1,2019 adjustment Current asset: Monetary fund 1,382,392,009.59 1,382,392,009.59 Settlement provision Outgoing call loan Transactional financial assets 0.00 1,156,870,000.00 1,156,870,000.00 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable 595,089,175.22 595,089,175.22 Account receivable 1,940,798,255.26 1,940,798,255.26 Financing of receivables Prepayments 370,958,990.74 370,958,990.74 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Other account receivable 32,552,458.76 32,552,458.76 Including:Interest receivable Dividend receivable 16,557,292.60 16,557,292.60 Repurchasing of financial assets Inventories 2,188,121,342.87 2,188,121,342.87 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 1,188,747,955.74 31,877,955.74 -1,156,870,000.00 Total of current assets 7,698,660,188.18 7,698,660,188.18 Non-current assets: Loans and payment on other’s behalf disbursed Debt investment Available for sale of financial assets 2,130,076,555.20 -2,130,076,555.20 Other investment on bonds Expired investment in possess Long-term receivable Long term share equity investment 8,221,439.29 8,221,439.29 Other equity instruments investment 0.00 2,011,876,524.40 2,011,876,524.40 34 The 3rd Quarterly Report 2019(Full Text) Other non-current financial assets 0.00 118,200,030.80 118,200,030.80 Property investment Fixed assets 783,740,928.49 783,740,928.49 Construction in progress 454,767,328.93 454,767,328.93 Production physical assets Oil & gas assets Use right assets Intangible assets 279,740,756.49 279,740,756.49 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset 213,962,707.23 213,962,707.23 Other non-current asset Total of non-current assets 3,870,509,715.63 3,870,509,715.63 Total of assets 11,569,169,903.81 11,569,169,903.81 Current liabilities Short-term loans 139,600,000.00 139,600,000.00 Loan from Central Bank Borrowing funds Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable 263,897,462.79 263,897,462.79 Account payable 1,086,685,918.74 1,086,685,918.74 Advance receipts 2,582,234,158.36 2,582,234,158.36 Contract liabilities Selling of repurchased financial assets Deposit taking and interbank deposit Entrusted trading of securities Entrusted selling of securities Employees’ wage payable 86,390,955.29 86,390,955.29 Tax payable 62,405,200.62 62,405,200.62 Other account payable 36,904,303.01 36,904,303.01 Including:Interest payable 437,314.72 437,314.72 Dividend payable 0.00 35 The 3rd Quarterly Report 2019(Full Text) Fees and commissions payable Reinsurance fee payable Liabilities held for sales Non-current liability due within 1 year 100,100,000.00 100,100,000.00 Other current liability Total of current liability 4,358,217,998.81 4,358,217,998.81 Non-current liabilities: Reserve fund for insurance contracts Long-term loan 22,700,000.00 22,700,000.00 Bond payable Including:preferred stock Sustainable debt Lease liability Long-term payable 474,876,451.26 474,876,451.26 Long-term remuneration payable to staff Expected liabilities Deferred income 44,675,128.30 44,675,128.30 Deferred income tax liability 244,169,946.57 244,169,946.57 Other non-current liabilities Total non-current liabilities 786,421,526.13 786,421,526.13 Total of liability 5,144,639,524.94 5,144,639,524.94 Owners’ equity Share capital 754,010,400.00 754,010,400.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 151,684,419.65 151,684,419.65 Less:Shares in stock Other comprehensive income 1,377,168,522.74 1,377,168,522.74 Special reserve 21,020,671.47 21,020,671.47 Surplus reserves 621,112,807.78 621,112,807.78 Common risk provision Retained profit 3,082,544,107.52 3,082,544,107.52 Total of owner’s equity belong to the parent 6,007,540,929.16 6,007,540,929.16 36 The 3rd Quarterly Report 2019(Full Text) company Minority shareholders’ equity 416,989,449.71 416,989,449.71 Total of owners’ equity 6,424,530,378.87 6,424,530,378.87 Total of liabilities and owners’ equity 11,569,169,903.81 11,569,169,903.81 Adjustment statement Parent Company Balance Sheet In RMB Amount involved in the Items December 31,2018 January 1,2019 adjustment Current asset: Monetary fund 877,357,020.98 877,357,020.98 Transactional financial assets 890,000,000.00 890,000,000.00 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable 302,284,986.43 302,284,986.40 Account receivable 1,374,628,210.45 1,374,628,210.45 Financing of receivables Prepayments 208,498,421.20 208,498,421.20 Other account receivable 19,984,760.06 19,984,760.06 Including:Interest receivable Dividend receivable 16,557,292.60 16,557,292.60 Inventories 1,584,030,951.83 1,584,030,951.83 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 890,000,000.00 -890,000,000.00 Total of current assets 5,256,784,350.95 5,256,784,350.95 Non-current assets: Debt investment Available for sale of financial assets 2,090,631,297.62 -2,090,631,297.62 Other investment on bonds Expired investment in possess Long-term receivable Long term share equity investment 502,919,378.03 502,919,378.03 37 The 3rd Quarterly Report 2019(Full Text) Other equity instruments investment 2,011,876,524.40 2,011,876,524.40 Other non-current financial assets 78,754,773.22 78,754,773.22 Property investment Fixed assets 448,890,495.75 448,890,495.75 Construction in progress 142,310,055.48 142,310,055.48 Production physical assets Oil & gas assets Use right assets Intangible assets 165,734,347.73 165,734,347.73 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset 163,871,631.81 163,871,631.81 Other non-current asset Total of non-current assets 3,514,357,206.42 3,514,357,206.42 Total of assets 8,771,141,557.37 8,771,141,557.37 Current liabilities Short-term loans Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable 24,200,000.00 24,200,000.00 Account payable 630,653,099.86 630,653,099.86 Advance receipts 1,877,069,335.29 1,877,069,335.29 Contract Liabilities Employees’ wage payable 43,332,523.01 43,332,523.01 Tax payable 37,809,874.53 37,809,874.53 Other account payable 24,708,959.22 24,708,959.22 Including:Interest payable 212,010.69 212,010.69 Dividend payable Liabilities held for sales Non-current liability due within 1 year 100,000,000.00 100,000,000.00 Other current liability Total of current liability 2,737,773,791.91 2,737,773,791.91 Non-current liabilities: 38 The 3rd Quarterly Report 2019(Full Text) Long-term loan Bond payable Including:preferred stock Sustainable debt Lease liability Long-term payable 264,512,388.24 264,512,388.24 Long-term remuneration payable to staff Expected liabilities Deferred income 41,944,793.30 41,944,793.30 Deferred income tax liability 244,169,946.57 244,169,946.57 Other non-current liabilities Total non-current liabilities 550,627,128.11 550,627,128.11 Total of liability 3,288,400,920.02 3,288,400,920.02 Owners’ equity Share capital 754,010,400.00 754,010,400.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 138,953,250.09 138,953,250.09 Less:Shares in stock Other comprehensive income 1,377,784,111.74 1,377,784,111.74 Special reserve 7,609,505.31 7,609,505.31 Surplus reserves 602,356,402.65 602,356,402.65 Retained profit 2,602,026,967.56 2,602,026,967.56 Total of owners’ equity 5,482,740,637.35 5,482,740,637.35 Total of liabilities and owners’ equity 8,771,141,557.37 8,771,141,557.37 2. Note to the retroactive adjustment of the previous comparative data according to the new standards for financial instruments and the new standards for lease implemented commencing from year 2019 Not applicable III. Auditor’ report Is the Third Quarterly Report be audited? □ Yes √No 39 The 3rd Quarterly Report 2019(Full Text) The Third Quarterly report is not audited. Hangzhou Steam Turbine Co., Ltd. Chairman of the Board: Zheng Bin October 30, 2019 40