深圳南山热电股份有限公司
Shenzhen Nanshan Power Co., Ltd
The Third Quarterly Report for 2016
Notice No.:2016-089
October 2016
Section I. Important Note
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shenzhen Nanshan Power Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
All Directors are attended the Board Meeting for Quarterly Report deliberation. Person in charge of the Company, Director GM Wu Dongxiang, person in charge of accounting works and CFO Huang Jian as well as Leng Jiwei (act for the financial management dept.), person in charge of accounting organ (accounting officer) hereby confirm that the Financial Report of this Quarterly Report is authentic, accurate and complete.
Concerning the forward-looking statements with future planning involved in the Semi-Report, they do not constitute a substantial commitment for investors. Investors are advised to exercise caution of investment risks.
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either.
||
|-|
|The Company’s audited net profits have a consecutively negative value in both|
|2014 and 2015 annual fiscal years, in accordance with relevant provisions of|
|"Rules Governing the Stock Listing in Shenzhen Stock Exchange ", the|

||
|-|
|Company's stock has been given a *ST risk admonition since 5 April 2016. If the|
|Company continues to have a deficit in 2016, stock of the Company will be|
|suspended from listing. The Company warns the investors to pay attention to|
|risks and prudently make rational investment decisions.|

In order to plan for major events, being applied to the Shenzhen Stock Exchange, stock of the Company has been suspended since the market hours on 31 May 2016. On 15 June 2016, the major event prepared by the Company in suspension was recognized as material assets reorganization, than stock of the Company turns to material assets reorganization suspension. On 30 June 2016 and 29 July, the Company applying for continued suspension one after another for one month. On 12 August 2016 and 30 August, the Proposal of Application of Continued Suspension for Planning Material Assets Reorganization was deliberated and approved by the
10th
extraordinary meeting of
7th
BOD and First Extraordinary GM of 2016 respectively. Stock of the Company remained suspended since the expiration of the suspension ended as
31st
August 2016, and the Material Assets Reorganization Plan or Report expected to disclosed in line with Rules of Information Disclosure Content and Format for Companies Publicly Issuing Securities No.26- Material Assets Reorganization of Listed Companies in six months (that is before
30th
November 2016) suspension accumulatively at most. On 13 August 2016, the Resolution Notice of 10th
extraordinary meeting of
7th
BOD and Notice of Application of Continued
Suspension for Planning Material Assets Reorganization were released, and
China Gas Holdings Limited(中国燃气控股有限公司) determined as the interested parties and entered into an Outline Agreement of Material Assets Reorganization. Since the material assets reorganization exist uncertainties, investors are advice to pay attention on the investment risks.
On 5 September 2016, the follow proposals are deliberated and approved by the 11th
extraordinary meeting of
7th
BOD, that is the Proposal of Major Assets Sales Plan and the other eleven proposals including Proposal of Major Assets Sales Plan of Shennandian and Summary, which with75% equity of Shenzhong Property Company and75% equity of Shenzhen Development Company held by Shennandian for sales concerned, and the Proposal of Land Purchase& Storage for T102-0011 and T102-0155. The75% equity respectively of Shenzhong Property Company and Shenzhong Development Company held by the Company, are publicly transfer in Shenzhen United Assets& Equity Exchange since 13 September 2016. The release date for listing transfer regulated as 20 working days in line with relevant regulation of the Shenzhen United Assets& Equity Exchange. On 23 September 2016, vary notices and documents as Notice of Replying the Inquiry Letter of Reorganization of SSE and Plan of Major Assets Sales (Revised) are released by the Company. On 17 October 2016, the75% equity of Shenzhong Property Company and75% equity (full transferring) of Shenzhong Development Company are under the hammer by Shenzhen Property Rights Auction Co., Ltd. and carried out a Letter of Affirmation of
Auction. The major assets sales and material assets reorganization with interestedparties’ introduction concerned have no mutual precondition connection.
The report has been prepared in both Chinese and English, for any discrepancies, the Chinese version shall prevail. Please read the full report seriously.
Paraphrase
||||
|-|-|-|
|Items|Refers to|Definition|
|Company, the Company, Shen|Refers to||
|||Shenzhen Nanshan Power Co., Ltd.|
|Nan Dian|||
||Refers to||
|Shen Nan Dian Zhongshan Co||Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.|
||Refers to||
|Shen Nan Dian Dongguan Co||Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd|
|Shen Nan Dian Engineering|Refers to||
|||Shenzhen Shennandian Turbine Engineering Technology Co., Ltd.|
|Co.,|||
|Shen Nan Dian Envionment|Refers to||
|||Shenzhen Shen Nan Dian Envionment Protection Co., Ltd.|
|Protection Co.,|||
||Refers to||
|Server Co.,||Shenzhen Server Petrochemical Supplying Co., Ltd.|
||Refers to||
|New Power Co.,||Shenzhen New Power Industrial Co., Ltd.|
||Refers to||
|Singapore Company||Shen Nan Energy (Singapore) Co., Ltd.|
|Nanshan Power Factory|Refers to|Nanshan Power Factory of Shenzhen Nanshan Power Co., Ltd.|
|Zhongshan Nam Long Power||Zhongshan Nam Long Power Plant of Shen Nan Dian (Zhongshan) Electric Power|
||Refers to||
|Plant||Co., Ltd.|
|||Dongguan Gaobu Power Plant of Shen Nan Dian (Dongguan) Weimei Electric Power|
|Dongguan Gaobu Power Plant|Refers to||
|||Co., Ltd.|
|Shenzhong Properties Company|Refers to|Zhongshan Shenzhong Real Estate Investment Properties Co., Ltd.|
|Shenzhong Development|||
||Refers to|Zhongshan Shenzhong Real Estate Development Co., Ltd.|
|Company|||
|NAM HOI|Refers to|HONG KONG NAM HOI (INTERNATIONAL) LTD.|
|Hong Kong Energy||Shenzhen Energy (Hong Kong) International Co.,LTD.|
||Refers to||
|Shen Energy Group||Shenzhen Energy Co., Ltd.|
||Refers to||
|Energy Group|Refers to|Shenzhen Energy Group Co., Ltd.|
|Guangju Industrial||Shenzhen Guangju Industrial Co., Ltd.|
||Refers to||
|Audit unit, Ruihua|Refers to|Ruihua Certified Public Accountant (LLP)|
|Dengheng, Perennial Legal|||
||Refers to|Beijing City Deheng (Shenzhen) Law Firm|
|Adviser|||
|Jin Du, Special Legal Adviser|Refers to|Beijing City Jin Du (Shenzhen) Law Firm|
|China Gas|Refers to|China Gas Holdings Limited|
|CSRC|Refers to|China Securities Regulatory Commission|
|||Shenzhen Securities Regulatory Commission of China Securities Regulation|
|Securities regulatory bureau|Refers to||
|||Commission|
|SZ Stock Exchange, Exchange|Refers to|Shenzhen Stock Exchange|
|Shenzhen United Exchange|Refers to|Shenzhen United Property And Share Rights Exchange|
|Company Law|Refers to|Company Law of The People’s Republic of China|

||||
|-|-|-|
|Securities Law|Refers to|Securities Law of The People’s Republic of China|
|Rules of Listing||Rules of Shenzhen Stock Exchange for the Listing of Stocks|
||Refers to||
|Articles of association|Refers to|Article of Association of Shenzhen Nanshan Power Co., Ltd.|
|||Except the special description of the monetary unit, the rest of the monetary unit is|
|RMB: Yuan, ten thousand Yuan|||
||Refers to||
|||RMB Yuan, ten thousand Yuan|
|Reporting period|Refers to|1 July to 30 September of 2016|

Section II. Main accounting data and changes of shareholders I. Main accounting data and 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
||||||||
|-|-|-|-|-|-|-|
||Current period-end||Period-end of last year||Increase/decrease||
|Total assets(RMB)|4,518,581,354.3||9 4,579,853,736.04||-1.34%||
|Net assets attributable to|571,859,511.2||9 636,006,699.57||||
|shareholders of listed company|||||-10.09%||
|(RMB)|||||||
|||||||Increase/decrease in|
|||Increase/decrease in|||||
|||||From year-begin to||comparison with|
||Current period|comparison with same|||||
|||||end of the Period||year-begin to|
|||period of last year|||||
|||||||Period-end of last year|
|Operating revenue (RMB)|508,884,871.33|34.03%||1,206,573,138.41||17.12%|
|Net profit attributable to|-7,704,809.93|||-64,159,556.17|||
|shareholders of the listed company||-125.88%||||-11.84%|
|(RMB)|||||||
|Net profit attributable to|||||||
|shareholders of the listed company|||||||
||-2,081,189.79|-94.79%||-68,149,787.97||-61.07%|
|after deducting non-recurring gains|||||||
|and losses(RMB)|||||||
|Net cash flow arising from||||134,180,465.15|||
||--|--||||-67.82%|
|operating activities(RMB)|||||||
|Basic earnings per share|-0.01|||-0.11|||
|||-120.00%||||-11.84%|
|(RMB/Share)|||||||
|Diluted earnings per share|-0.01|||-0.11|||
|||-120.00%||||-11.84%|
|(RMB/Share)|||||||
|Weighted average ROE|-1.34%|-3.86%||-10.62%||-4.73%|

 In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||end of the Period||
|Gains/losses from the disposal of non-current asset (including the|||
||-203,276.08||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|||
||4,240,098.90||
|including the subsidy enjoyed in quota or ration according to|||

||||
|-|-|-|
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Other non-operating income and expenditure except for the|||
||2,044,713.72||
|aforementioned items|||
|Other gain/loss items satisfying the definition of nonrecurring|||
||0.00||
|gain/loss account|||
|Less: impact on income tax|353,648.17||
|Impact on minority shareholders’ equity (post-tax)|1,737,656.57||
|Total|3,990,231.80|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss.
II. Statement of the total shareholders and shares-held of top ten shareholders at end of the Period
1. Common and preferred stockholders with voting rights recover and the top ten share-holding
In Share
|||||||||
|-|-|-|-|-|-|-|-|
|||||Total preferred stockholders||0||
|Total common shareholders at the||||with voting rights recover at||||
|||31,650||||||
|end of report period||||the end of report period (if||||
|||||applicable)||||
|Top ten share-holding||||||||
||||||Amount of|Number of share pledged/frozen||
||Nature of|Proportion of|Amount of shares|||||
|Shareholders|||||restricted shares|||
||shareholder|shares held|held|||State of share|Amount|
||||||held|||
|HONG KONGNAM HOI(INTERNATIONAL) LTD|Foreign corporate|15.28%|92,123,248|||||
|ShenzhenGuangjuIndustrial Co.,|State-ownedcorporate|12.22%|73,666,824|||||

|||||||
|-|-|-|-|-|-|
|Ltd.||||||
|SHENZHENENERGY(GROUP) CO.,LTD.|State-ownedcorporate|10.80%|65,106,130|||
|National SocialSecurity Fund-604|Other|1.52%|9,159,257|||
|Zeng Ying|Domestic natureperson|1.00%|6,049,070|||
|CMS (HK)|Foreign corporate|0.88%|5,319,687|||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreign corporate|0.81%|4,854,318|||
|BOCISECURITIESLIMITED|Foreign corporate|0.73%|4,403,014|||
|Zhang Heping|Domestic natureperson|0.72%|4,351,900|||
|YAO XIUGUANG|Foreign corporate|0.65%|3,939,000|||
|Particular about top ten shareholders with un-restrict shares held||||||
|||Amount of unrestricted shares held at reporting||Type of shares||
|Shareholders’ name||||||
|||period-end||Type|Amount|
|HONG KONG NAM HOI(INTERNATIONAL) LTD||92,123,248||Domestically||
|||||listed foreign|92,123,248|
|||||shares||
|Shenzhen Guangju Industrial Co.,Ltd.||73,666,824||RMB ordinary||
||||||73,666,824|
|||||shares||
|SHENZHEN ENERGY (GROUP)CO., LTD.||65,106,130||RMB ordinary||
||||||65,106,130|
|||||shares||
|National Social Security Fund -604||9,159,257||RMB ordinary||
||||||9,159,257|
|||||shares||
|Zeng Ying||6,049,070||Domestically||
|||||listed foreign|6,049,070|
|||||shares||
|CMS (HK)||5,319,687||Domestically|5,319,687|

|||||
|-|-|-|-|
|||listed foreign||
|||shares||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|4,854,318|Domestically||
|||listed foreign|4,854,318|
|||shares||
|BOCI SECURITIES LIMITED|4,403,014|Domestically||
|||listed foreign|4,403,014|
|||shares||
|Zhang Heping|4,351,900|RMB ordinary||
||||4,351,900|
|||shares||
|YAO XIU GUANG|3,939,000|Domestically||
|||listed foreign|3,939,000|
|||shares||
||1. Shenzhen Energy (Group) Co., Ltd. holds 100% equities of HONG KONG NAM HOI|||
|Explanation on associated||||
||(INTERNATIONAL) LTD indirectly; 2. Among other social public shareholders, the|||
|relationship among the top ten||||
||Company did not know whether there were associated relationships or belonging to consistent|||
|shareholders or consistent action||||
||actors.|||
|Explanation on top ten common||||
|shareholders involving margin|N/A|||
|business (if applicable)||||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□Yes√No
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in reporting period
2. Total of shareholders with preferred stock held and the top ten shareholdings
□Applicable √Not applicable
Section III. Important events
I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons
√ Applicable□Not applicable
||||||||||
|-|-|-|-|-|-|-|-|-|
|||At the end of the||||Rate of increase|||
|||||At the end of last year||||Reasons for changes|
|||reporting period||||or decrease|||
|Note receivable|-||1,200,000.00||-100.00%||Notes are due to recover||
|Advance payment|104,731,923.31||254,557.09||41042.80%||Account paid in advance fornatural gas increased||
|Other receivables|42,808,499.60||30,685,319.69||39.51%||Come-and-go moneyincreased||
|Accounts payable|52,536,125.70||38,014,729.22||38.20%||Account payable for naturalgas increased||
|Payment in advance|-||58,575.45||-100.00%||Account received inadvance for constructiontransfer to revenue||
|Tax payable|9,121,683.14||13,444,485.85||-32.15%||Business tax and surchargedeclined||
|Long term loan|910,900,000.00||696,000,000.00||30.88%||Short-term loans replaced tolong-term loans||
|Minority interests|-118,494,099.47||-87,095,894.29||36.05%||Running at a loss in theYear||
|||Year-begin to||Same period of last||Y-o-y|||
|||||||||Reasons for changes|
|||period-end||year||increase/decrease|||
|Investment income|-1,629,936.37||-1,244,685.23||30.95%||Change of the net profit ofsubsidiary based on equity||

Operating profit -100,589,205.45 -382,437,492.24 -73.70% Costs declined
||||||
|-|-|-|-|-|
|Non operating income|15,728,109.02|265,761,057.54|-94.08%|Cancel the electricitysubsidy|
|Non operating expenses|7,844,301.19|116,532.87|6631.41%|Fuel consumption subsidyrefund|
|Income tax expenses|2,852,363.73|803,816.89|254.85%|Advance payment ofincome tax increased|
|Net profit attributable toshareholders of the listedcompany after deductingnon-recurring gains andlosses|-68,149,787.97|-175,043,536.34|-61.07%|Non-recurring profit & lossas subsidies and tax refunddeclined|
|Net cash flow arising fromoperating activities|134,180,465.15|416,988,552.21|-67.82%|Subsidies received declined|
|Net cash flow arising frominvestment activities|-14,560,838.09|-25,325,080.80|-42.50%|Technically improve costsdecreased from a yearearlier|
|Net cash flow arising fromfinancing activities|-203,684,291.77|-86,983,457.69|134.16%|Net financing amountdecreased|

II. Progress and influence of the main events as well as solution analysis specification
√ Applicable □ Not applicable
1. On 9 December and 28 December 2015, the Company convened the
6th
extraordinary meeting of the
7th board of directors and the
5th
extraordinary general meeting for 2015, respectively, to consider and approve the proposal relating to government acceptance of a land parcel with an area of 346 mu by Zhongshan Shenzhong Real Estate Development Company (details were disclosed in the relevant announcements (No. 2015-080 and No. 2015-086) of the Company dated 10 December and 29 December 2015 published on China Securities, Securities Times, Hong Kong Commercial Daily and Juchao information website). However, by the disclosure of 2015 annual report, the Company had not reached unanimous agreement with Zhongshan government in respect of the acceptance conditions for such land of 346 mu. According to relevant provisions of financial management system, the Company has made inventory impairment provision of RMB576, 291,300 for such land based on existing information and progress of acceptance works. Details were disclosed in the relevant announcement (No. 2016-016) of the Company dated 1 April 2016 published on China Securities, Securities Times, Hong Kong
Commercial Daily and Juchao information website, concerning impairment provision for each asset of the
Company and its subsidiaries for 2015. On 21 April 2016, the Company sent out a visiting letter to competent
authorities of Zhongshan government, requesting for negotiation for acceptance of the parcel of land of 346 mu by
Shenzhong Development Company. On 20 July, the Company issued a Referendum of Land Purchasing& Storage on the 346 mu Lands of Shenzhong Real Estate Company to Zhongshan MunicipalPeople’s government. On 18 August, the Company received a Reply of Land Purchasing& Storage on the 346 mu Lands of Shenzhong Company from Land Reserve Center of Zhongshan, the Center has a willing to negotiate with the Company in aspect of the land reserve (found more in the Full Text of Semi-Annual Report 2016[Notice No.:2016-057] released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website dated 25 August 2016). Up to the Report disclosed, the Company has not yet reaches an agreement with Zhongshan MunicipalPeople’s government on the 346 mu lands purchasing& storage
2. Subject to preparation of significant issues, the Company began to suspend trading of shares from the morning trading session on 31 May 2016, and the Significant Matters Suspension Notice (Notice No.: 2016-032) released on the same date. On 15 June 2016, the Company issued a suspending announcement due to reorganization of material assets (No. 2016-034), confirming that the significant issue prepared for this suspension referred to reorganization of material assets. Besides, it issued bid invitation for potential party for reorganization to nine companies and institutions, so as to identify those parties which were interested in participating reorganization of theCompany’s material assets. Up to the bid closing date of 4 July 2016, the Company has received three tender documents; other six units are expressly to give up the tender by means of letter and e-mail. On 12 August, China Gas was determined as the intention restructuring party and has entered into the Framework Agreement of Material Assets Reorganization. On 30 August 2016, the Company holding the first extraordinary general meeting of 2016 for deliberated and approved the Proposal of Application of Continue Suspension for Expiration of Material Assets Reorganization Suspension. Stock of the Company remained suspended since the expiration of the suspension ended as
31st
August 2016, and the Material Assets Reorganization Plan or Report expected to disclosed in line with Rules of Information Disclosure Content and Format for Companies Publicly Issuing Securities No.26- Material Assets Reorganization of Listed Companies in six months (that is before 30th November 2016) suspension accumulatively at most. Up to the report disclosed, the Company and concerned parties as well as China Gas are not conclude between both parties in aspect of the material assets reorganization plan and relevant condition. In view of the material assets reorganization still in negotiation and there exist uncertainties, in suspension, the Company will perform its information disclosure obligation in line with relevant laws, regulations and rules of the Shenzhen Stock Exchange, relevant information with the above mentioned event concerned found more in announcement (Notice No.: 2016-032, 2016-033, 2016-034, 2016-035, 2016-036, 2016-037, 2016-038, 2016-041, 2016-042, 2016-044, 2016-046, 2016-047, 2016-048, 2016-051, 2016-054, 2016-049, 2016-051, 2016-054, 2016-063, 2016-065, 2016-067, 2016-072, 2016-075, 2016-080 and 2016-081) released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website. 3. On 12 August 2016, the Company holding the
10th
extraordinary meeting of
7th
BOD, deliberated and approved the Proposal of Transferring75% Equity of Zhongshan Shenzhong Real Estate Investment Property Co., Ltd and Zhongshan Shenzhong Real Estate Development Co., Ltd. Respectively, and agreed to transferred the equity of the above mentioned companies(found more in Resolution Notice of
10th
Extraordinary Meeting of
7th
BOD and Progress of Material Assets Reorganization Suspension Notice No.: 2016-019, 2016-063 released on 13 August and 29 August). On 5 September 2016, the follow proposals are deliberated and approved by the 11th extraordinary meeting of
7th
BOD, that is the Proposal of Major Assets Sales Plan and the other eleven proposals including Proposal of Major Assets Sales Plan of Shennandian and Summary, which with75% equity of Shenzhong Property Company and75% equity of Shenzhen Development Company held by Shennandian for sales concerned, the Resolution Notice of
11th
extraordinary meeting of
7th
BOD, Plan of Material Assets Sales and Summary as well as vary documents are released(found more in Resolution Notice of
11th
extraordinary meeting of
7th
BOD Notice No.: 2016-068 and other documents in China Securities Journal, Securities Times,
Hong Kong Commercial Daily and Juchao Website dated 7 September 2016). The75% equity respectively of Shenzhong Property Company and Shenzhong Development Company held by the Company, are publicly transfer in Shenzhen United Assets& Equity Exchange since 13 September 2016. The release date for listing transfer regulated as 20 working days in line with relevant regulation of the Shenzhen United Assets& Equity Exchange. Trading condition for the listing transfer information can be found through website http://www.eoechina.com.cn/. On 14 September, the Company submit the Notice of Publicly Transferring Each75% Equity of Zhongshan Shenzhong Real Estate Property Co., Ltd. and Zhongshan Shenzhong Real Estate Development Co., Ltd. (found more in the announcement[Notice No.:2016-074] released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Websites). Pursuit to regulations of the Shenzhen Stock Exchange, the Exchange carried out subsequent examination on the relevant documents of Material Assets Sales Plan of the Company, and sending out a Inquiry Letter of the Reorganization under the name of Shenzhen Nanshan Power Co., Ltd(Non-permission Reorganization Inquiry[2016] No. 16) (hereinafter referred as to Reorganization Inquiry Letter. The Company immediately examining the questions and requirement that proposed in the Reorganization Inquiry Letter with intermediary agent, and released the Notice on Replying the Reorganization Inquiry Letter of Shenzhen Stock Exchange and Material Assets Sales Plan (Revised) as well as vary documents (found more in announcement[Notice No.:2016-077] and relevant document released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Websites dated 23 September 2016). There are three eligible intended assignee ended as 14 October 2016, when the public listing expired. On 17 October 2016, the75% equity of Shenzhong Property Company and75% equity (full transferring) of Shenzhong Development Company are under the hammer by Shenzhen Property Rights Auction Co., Ltd. and carried out a Letter of Affirmation of Auction. Bidding results are: Shenzhen Ouyuanfu Technology Co., Ltd. is the vendee of the bidding, the75% equity respectively of Shenzhong Property Company and Shenzhong Development Company has a total transaction price of 1,030 million Yuan. Up to the report disclosed, the vendee has entered into an Equity Transfer Agreement. The Sales of Substantial Assets Report (Draft) of Shenzhen Nanshan Power Co., Ltd. and relevant proposals are deliberated in the Board Meeting and General Meeting of Shareholders, and entered into the equity transfer agreement after deliberation (found more in the Progress of75% Equity Transferring, Respectively of Shenzhong Real Estate Investment Property Co., Ltd. and Zhongshan Shenzhong Real Estate Development Co., Ltd. in Way of Public Listing Notice No.: 2016-084 released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website dated 18 October 2016)
4. On 24 February 2016, controlling subsidiary– Xiefu Company, submitted civil complaint and other supporting materials to thePeople’s Court of Huangpu district, Guangzhou against China Shipping& Sinopec in aspect of the arrearage for oil, and thePeople’s Court open a court session on 16 May. Xiefu Company received a Paper of Civil Judgment[(2016) Yue 0112 Min CNo.:858] fromPeople’s Court of Huangpu district, Guangzhou on 23 August. On 9 September, the Company received a letter from Xiefu Company, it said the China Shipping& Sinopec will appeal the decision to Guangzhou IntermediatePeople’s Court with the Civil Petition of Appeal (found more in the Notice of Lawsuit of Subordinate Enterprise Shenzhen Xiefu Energy Co., Ltd.(No.: 2016-007), Progress of the Lawsuits (No.: 2016-061) and Progress of the Lawsuits (No.: 2016-073) released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Websites dated respectively dated 1 March 2016, 25 August 2016 and 10 September 2016). Up to the report disclosed, there are no hearing for the appeal, the Company will closely follow the progress, and perform obligation of information disclosure timely by strictly in line with relevant laws, regulations and requirements.
5. On 29 August 2016, the Reply on Land Assets Disposal of Nanshan Power Plant(SQHH[2016] No.784) and Taken Back the Land Use Right of T102-0011 and T102-0155(SQHH[2016] No.794) are received from Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen (hereinafter referred to as Qianhai Cooperation Zone). After received the letter, the Company fulfill disclosure obligation timely and holding the 11th extraordinary meeting of
7th
BOD on 5 September 2016, deliberated and approved the Proposal of Land Reserve of T102-0011 and T102-0155 (found more in Notice of Receiving the Letter of Taken Back the Land Use Right of T102-0011 and T102-0155 (Notice No.: 2016-066) and Resolution of
11th
extraordinary meeting of
7th
BOD (Notice No.: 2016-068) released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Websites dated respectively dated 31 August 2016 and 7 September 2016). On 19 September, Economy, Trade and Information Commission of Shenzhen Municipality holding a meeting for studying the above mentioned land reserve, and formulated a meeting summary. On 17 October, the Company received a Notification of Land Development Mapping for Nanshan Power Plant, Selected by Shenzhen Qianhai Investment Holding Company and Appraisal Agency(SQKH[2016] No.179). Shenzhen Qianhai Development Investment Holding Co., Ltd. was commissioned by Qianhai Authority, as a specific exploiting entity of Qianhai land development plan, the primary library catalogue for surveying& mapping institute and appraisal agency has been established, the agency for surveying& mapping and appraisal will be determined in way of lottery. Up to the report disclosed, the Company is cooperating to carry out communications and calculation with the land reserves concerned. The Company will continue to perform the information disclosure obligation according to the progress.
6. On 19 September 2016, controlling subsidiary–Shenzhong Development Company sending a letter, that is Management Committee of Zhongshan Torch Hi-Te Industrial Development Zone (hereinafter referred to as Management Committee of Zhongshan Development Zone) issued a Bulletin of Regulatory Detailed Planning of the Zhongshan Torch District and Linggang as well as surrounding area (2015) (period for notice was 30 days, that is from 7 September 2016 to 6 October 2016), the land owned by Shenzhong Development Company has involved. Shenzhong Development Company submits a Request for Instruction of the Land Regulatory Plan of Zhongshan Shenzhong Real Estate Development Co., Ltd., raise an objection on the planning adjustment for 346 Mu lands of the Shenzhong Development Company in Regulatory Detailed Planning Adjustment Plan (2015). The Company will pay close attention to the progress, and will cooperate with Shenzhong Development Company and Zhongshan Government and relevant functional department for communication, and perform obligation of information disclosure timely. (Found more in Notice of Bulletin of Regulatory Detailed Planning of the Zhongshan Torch District and Linggang as well as surrounding area (2015) issued by Management Committee of Zhongshan Development Zone Notice No.: 2016-076 released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Websites dated respectively dated 21 September 2016.)
7. Overview of other important matters
||||
|-|-|-|
|||Query indexes of disclosure website for|
|Overview|Disclosure date||
|||interim report|
|On 14 January 2016, the Company’s subsidiaryShennandian Dongguan Company received approvalissued by Guangdong Development and ReformCommission in relation to the fuel-gas and steam||For details, please refer to the|
|||announcement (No. 2016-001) dated 16|
||2016-1-16||
|||January 2016 published by the Company|
|||on China Securities, Securities Times,|

||||
|-|-|-|
|consolidated cycle power generation project byGaobu Natural Gas Power Plant(YFGNDH[2016]140). The approval stated that “withreference to consideration by GuangdongDevelopment and Reform Commission, and takinginto account the safety operation of power system andenergy supply requirement of the whole province, inorder to facilitate approval procedure of this project,it is agreed to approve the fuel-gas and steamconsolidated cycle power generation project withcapacity of 2×180 MW by Gaobu Natural Gas PowerPlant under administration of Shennandian DongguanCompany”. During the reporting period, ShennandianDongguan Company signed Power AllocationAgreement with relevant grid company, and obtainedpower business license from the state energy bureau,southern supervision bureau on 7 March. Two9Emachine sets of the company have been in officialoperation for power generation.||Hong Kong Commercial Daily and Juchao|
|||information website, concerning the|
|||subsidiary Shennandian (Dongguan)|
|||Weimei Power Company Limited’s receipt|
|||of approval in relation to the fuel-gas and|
|||steam consolidated cycle power generation|
|||project by Gaobu Natural Gas Power Plant.|
|In order to improve relevant procedures, realizeindustrial upgrade, acquire power quantity and seekfor conditions benefiting for sustainable development,the Company held the 8th extraordinary meeting of the7th board of directors on 22 January 2016 to considerand approve the proposal relating to investment bythe subsidiary Shennandian (Zhongshan) PowerCompany in constructing phase I thermal network ofthermal-power combination project.The construction documents design and budgetreports as well as bidding works on supervising unithave completed; meanwhile, the project haveobtained the follow supporting materials as PlanningPermit of Construction Engineering issued byMunicipal Bureau for Urban Planning, the approvaldocumets of bridges and locks issued by WaterSupplies Bureau and reply on usage of relevant routeagreed by City Communication Corporation.Currently, the project still in bidding phase for itsconstruction unit.|||
|||Details were disclosed in the|
|||announcement (No. 2016-004) dated 23|
|||January 2016 published by the Company|
|||on China Securities, Securities Times,|
|||Hong Kong Commercial Daily and Juchao|
||2016-1-23||
|||information website, concerning|
|||investment by the subsidiary Shennandian|
|||(Zhongshan) Power Company in|
|||constructing phase I thermal network of|
|||thermal-power combination project.|
|On 28 January 2016, our subsidiary ShennandianDongguan Company received the approval fromGuangdong Development and Reform Commission inrelation to determining temporary grid price of Gaobu||Found more in Notice of controlling|
|||subsidiary Shen Nan Dian Dongguan|
||2016-1-30||
|||Company received a Reply on Authorized|
|||Temporary Grid Purchase Price of the|

||||
|-|-|-|
|Power Plant under administration of Shennandian(Dongguan) Weimei Power Company(YFGJGH[2016]379), pursuant to which, theaforesaid temporary grid price was RMB0.745 (taxincluded) per kwh which would be adopted since 1February 2016.||Gaobu Power Plant of Shen Nan Dian|
|||(Dongguan) Weimei Power Co., Ltd.|
|||Notice No.:2016-006) released on China|
|||Security Journal, Securities Times, Hong|
|||Kong Commercial Daily and Juchao|
|||Website dated 30 Jan. 2016.|
|Taking into consideration the audited net profit of theCompany for 2014 and 2015 accounting years beingRMB-330,513,284.99 and RMB-634,623,667.06,respectively, the Company was required to suspendtrading for its shares on 1 April 2016 on which its2015 annual report was disclosed under relevantrequirements of the Listing Rules of Shenzhen StockExchange. Since 5 April when resumption of tradingbegan (2, 3 and 4 April were legal holidays), shares ofthe Company were traded with warning for delisting,which meant that abbreviation of our stock would beadded *ST and the daily increase/decrease cap fortrading price was subject to 5%. In case the Companycontinues to record loss for 2016, it may be requiredto delist temporarily. Investors are hereby warned topay attention to investment risks.|||
|||Found more in Notice of Delisting Risk|
|||Warning on Stock of the Company (Notice|
|||No.: 2016-015) released on China Security|
||2016-4-1||
|||Journal, Securities Times, Hong Kong|
|||Commercial Daily and Juchao Website|
|||dated 1 April 2016|
|The relevant information of “benficial fund of projectconstruction” was disclosed in the First QuarterlyReport of 2016 released on 27 April 2016. Accordingto requriements from relevant authorities, theCompany helds many meetings for study the issues,and take further examination in aspect of thebeneficial fund of project construction, furhermore,well-defined the person responsible for collectingworks, and efforts are under way in contactingrelevant personnel and issued a notice of returningrelevant accounts. In reporting period, the returnmoney of “benficial fund of project construction” hasRMB 500,000 received.|||
|||Found more in the First Quarterly Report|
|||of 2016 (Notice No.: 2016-026) released|
||2016-4-27|on China Securities Jorunal, Securities|
|||Times, Hong Kong Commercial Daily and|
|||Juchao Website|
|In 2015, pursuant to the notice relating to increase ofshareholding in the Company by its substantialshareholders, directors, supervisors and seniormanagement (ZJF[2015]51) issued by the CSRC, ourshareholder Guangju Industrial planned to increaseshareholding in the Company with the own capital notless than RMB25.12 million since 9 July 2015, bymeans of asset management through securities||Found more in the Notice of Overweight|
|||of shareholders and chairman of the|
|||Company (Notice No.: 2015-052) , the|
|||Third Quarterly Report of 2015 (Notice|
||2016-5-10||
|||No.: 2015-072) and Notice of Completion|
|||of Overweight of Shareholders (Notice|
|||No.: 2016-030) released on China|
|||Securities Jorunal, Securities Times, Hong|

||||
|-|-|-|
|companies and fund management companies, and itundertook not to decrease its shareholding within 6months upon implementation of this capital increaseplan. From 16 September 2015 to 9 May 2016,Guangju Industrial has in aggregate increasedshareholding of 2,908,201 A-shares of the Companyby means of asset management plan, accounting for0.48% of the total shares of the Company, and theamount subject this increase was approximatelyRMB25,127,900. The shareholding increase plan hasbeen completed. Upon this increase of shareholding,Guangju Industrial holds in aggregate 73,666,824A-shares of the Company directly or through assetmanagement account, accounting for 12.22% of thetotal shares of the Company. This increase ofshareholding complied with relevant laws, regulationsand provisions of Shenzhen Stock Exchange.||Kong Commercial Daily and Juchao|
|||Website respectively dated 9 July 2015, 23|
|||October 2015 and 10 May 2016.|
|On 9 May 2016, the Company received the noticeissued by Guangdong Development and ReformCommission, Guangdong Economy and InformationCommission and Guangdong Finance Bureau inrelation to subsidy for fuel gas and oil processing feefor the period from January to September 2015(YFGJG[2016]221). According to relevantrequirement of the notice in relation to temporarycollection of fuel gas and oil processing fee(YFH[2008]31) issued by Guangdong People’sGovernment, it was verified that, for the period fromJanuary to September 2015, the revenue from powergeneration of Zhongshan Nanlang Power Plant whichour subsidiary Shennandian Zhongshan Companybelonged to was RMB0.913 per kwh, and RMB0.89per kwh for Dongguan Gaobu Power Plant whichShennandian Dongguan Company belonged to. Partof such power revenue generated by the aforesaidplants was settled by Guangdong Grid Companydirectly with the plants by reference to the poweroffered by the plants into grid and the agreed price,and the remaining part was compensated by means offuel gas and oil processing fee. According to thenotice, Shennandian Zhongshan Company willincrease revenue of RMB6, 643,200 for this periodand RMB1, 257,900 for Shennandian DongguanCompany.|||
|||For details, please refer to the|
|||announcement (No. 2016-031) dated 10|
|||May 2016 published by the Company on|
|||China Securities, Securities Times, Hong|
||2016-5-10|Kong Commercial Daily and Juchao|
|||information website, in relation to receipt|
|||of notice concerning subsidy for fuel gas|
|||and oil processing fee for the period from|
|||January to September 2015.|

III. Commitments that the company, shareholders, actual controller, purchaser, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
√ Applicable□Not applicable
||||||||
|-|-|-|-|-|-|-|
||||Commitment|Commitment|Implementatio||
|Commitments|Accepter|Contents||||Commitments|
||||time|period|n||
|Commitments for Share Merger|||||||
|Reform|||||||
|Commitments in report of|||||||
|acquisition or equity change|||||||
|Commitments in assets replacement|||||||
|Commitments make in Initial public|||||||
|offering or re-financing|||||||
|Equity incentive commitment|||||||
||||Promise not to||||
||Shenzhen||reducing the||||
|Other commitments for minority|Guangju|Other|stock in over|||In normal|
|||||2016-05-09|6 months||
|shareholders|Industrial Co.,|commitment|weight period|||completion|
||Ltd.;||and the legal||||
||||time limit||||
|Commitments for Share Merger|Yes||||||
|Reform|||||||

IV. Estimation of operation performance for year of 2016
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
V. Particular about security investment
□ Applicable√ Not applicable
The Company had no security investment in Period.
VI. Particulars about derivatives investment
□ Applicable√ Not applicable
The Company had no derivatives investment in Period.
VII. Registration form of receiving research, communication and interview in the report period
√ Applicable□Not applicable
|||||
|-|-|-|-|
|Time|Way|Type|Contents discussed and material provided|
|Jan. to Sep. of 2016|Written|Investors (8)|In the premise of not violating the principles of information disclosure|

|||||
|-|-|-|-|
||inquiries||and the confidential system of significant information, the Company|
||||seriously and timely responded to the investors’ inquiries about the|
||||Company's basic business circumstances, financial management|
||||situation, and relevant information of subordinate companies.|
||||In the premise of not violating the principles of information disclosure|
||||and the confidential system of significant information, the Company|
|2016-4-25|Field research|Investor (1)|seriously and timely responded to the investors’ inquiries about the|
||||Company's basic business circumstances, financial management|
||||situation, and relevant information of subordinate companies.|
||||In the premise of not violating the principles of information disclosure|
||||and the confidential system of significant information, the Company|
|2016-8-30|Field research|Investors (5)|seriously and timely responded to the investors’ inquiries about the|
||||Company's basic business circumstances, financial management|
||||situation, and relevant information of subordinate companies.|

VIII. External security against the rules
□ Applicable√ Not applicable
||
|-|
|The Company has no external security against the rules in the Period.|
|IX. Controlling shareholders' and its related party's non-business capital occupying of the|
|listed company|

□ Applicable√ Not applicable
There are no controlling shareholders' and its related party's non-business capital occupying of the listed company.
Section IV. Financial Statement
I. Financial statement
1. Consolidated Balance Sheet
Prepared by Shenzhen Nanshan Power Co., Ltd
2016-10-21
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|948,742,472.07|1,026,626,480.06|
|Settlement provisions|||
|Capital lent|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|||1,200,000.00|
|Notes receivable|||
||395,306,496.07|405,391,442.85|
|Accounts receivable|||
|Accounts paid in advance|104,731,923.31|254,557.09|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|42,808,499.60|30,685,319.69|
|Purchase restituted finance asset|||
|Inventories|734,069,724.36|672,683,049.42|
|Divided into assets held for sale|||
|Non-current asset due within one|||
|year|||
|Other current assets|542,258,339.87|604,426,110.04|
|Total current assets|2,767,917,455.28|2,741,266,959.15|
|Non-current assets:|||

||||
|-|-|-|
|Loans and payments on behalf|||
|Finance asset available for sales|59,315,000.00|57,315,000.00|
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|20,890,338.41|22,520,274.78|
|Investment property|3,047,612.31|3,194,715.51|
|Fixed assets|1,580,302,669.02|1,667,494,083.42|
|Construction in progress|9,561,886.05|8,473,276.90|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|51,758,442.85|53,801,475.81|
|Expense on Research and|||
|Development|||
|Goodwill|||
|Long-term expenses to be|||
|apportioned|||
|Deferred income tax asset|2,905,768.69|2,905,768.69|
|Other non-current asset|22,882,181.78|22,882,181.78|
|Total non-current asset|1,750,663,899.11|1,838,586,776.89|
|Total assets|4,518,581,354.39|4,579,853,736.04|
|Current liabilities:|||
|Short-term loans|1,866,764,173.08|2,385,300,000.00|
|Loan from central bank|||
|Absorbing deposit and interbank|||
|deposit|||
|Capital borrowed|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|418,120,879.94|340,000,000.00|
|Accounts payable|52,536,125.70|38,014,729.22|
|Accounts received in advance||58,575.45|
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||

||||
|-|-|-|
|commission payable|||
|Wage payable|45,833,946.53|47,521,710.84|
|Taxes payable|9,121,683.14|13,444,485.85|
|Interest payable|77,173,300.22|63,142,049.81|
|Dividend payable|||
|Other accounts payable|357,908,215.99|371,926,173.24|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held for sale|||
|Non-current liabilities due within 1|254,000,000.00||
|year|||
|Other current liabilities|||
|Total current liabilities|3,081,458,324.60|3,259,407,724.41|
|Non-current liabilities:|||
|Long-term loans|910,900,000.00|696,000,000.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Special accounts payable|||
|Projected liabilities|27,100,000.00|27,100,000.00|
|Deferred income|45,757,617.97|48,435,206.35|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|983,757,617.97|771,535,206.35|
|Total liabilities|4,065,215,942.57|4,030,942,930.76|
|Owner’s equity:|||
|Share capital|602,762,596.00|602,762,596.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||

||||
|-|-|-|
|Capital public reserve|362,770,922.10|362,758,554.21|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus public reserve|332,908,397.60|332,908,397.60|
|Provision of general risk|||
|Retained profit|-726,582,404.41|-662,422,848.24|
|Total owner’s equity attributable to|571,859,511.29|636,006,699.57|
|parent company|||
|Minority interests|-118,494,099.47|-87,095,894.29|
|Total owner’s equity|453,365,411.82|548,910,805.28|
|Total liabilities and owner’s equity|4,518,581,354.39|4,579,853,736.04|

 Legal representative: Chairman Yang Haixian
Person in charge of accounting works: Director GM Wu Xiangdong; CFO Huang Jian
Person in charge of accounting institution: Leng Jiwei (act for the financial management dept.)
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
||429,054,545.92|685,708,711.65|
|Monetary funds|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes receivable|||
|Accounts receivable|269,418,994.12|309,114,888.65|
|Account paid in advance|34,462,444.99|215,431.80|
|Interest receivable|||
|Dividends receivable|79,495,331.17|79,495,331.17|
|Other receivables|1,274,931,986.46|1,260,619,190.09|
|Inventories|73,565,040.72|73,381,539.62|
|Divided into assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|434,830,834.84|460,714,889.70|
|Total current assets|2,595,759,178.22|2,869,249,982.68|

||||
|-|-|-|
|Non-current assets:|||
|Available-for-sale financial assets|59,315,000.00|57,315,000.00|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|691,982,849.76|691,982,849.76|
|Investment property|||
|Fixed assets|232,843,013.73|240,657,379.95|
|Construction in progress|914,948.30|744,725.65|
|Project materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|4,389,272.40|5,469,452.93|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|||
|Other non-current assets|||
|Total non-current assets|989,445,084.19|996,169,408.29|
|Total assets|3,585,204,262.41|3,865,419,390.97|
|Current liabilities:|||
|Short-term borrowings|1,370,000,000.00|2,024,000,000.00|
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|342,626,006.77|340,000,000.00|
|Accounts payable|214,643.58|24,793,826.11|
|Accounts received in advance|||
|Wage payable|25,948,484.27|25,958,401.01|
|Taxes payable|163,034.72|2,488,252.98|
|Interest payable|3,221,408.89|4,072,366.54|
|Dividend payable|||
|Other accounts payable|224,058,232.37|167,136,669.31|

||||
|-|-|-|
|Divided into liability held for sale|||
|Non-current liabilities due within 1|||
||150,000,000.00||
|year|||
|Other current liabilities|||
|Total current liabilities|2,116,231,810.60|2,588,449,515.95|
|Non-current liabilities:|||
|Long-term loans|518,500,000.00|250,000,000.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Special accounts payable|||
|Projected liabilities|||
|Deferred income|26,710,074.60|28,425,205.59|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|545,210,074.60|278,425,205.59|
|Total liabilities|2,661,441,885.20|2,866,874,721.54|
|Owners’ equity:|||
|Share capita|602,762,596.00|602,762,596.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|288,869,612.11|288,857,244.22|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus reserve|332,908,397.60|332,908,397.60|
|Retained profit|-300,778,228.50|-225,983,568.39|
|Total owner’s equity|923,762,377.21|998,544,669.43|
|Total liabilities and owner’s equity|3,585,204,262.41|3,865,419,390.97|

3. Consolidated Profit Statement (this report period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|508,884,871.33|379,682,013.49|
|Including: Operating income|508,884,871.33|379,682,013.49|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|518,933,147.78|499,776,826.19|
|Including: Operating cost|450,577,571.37|419,384,089.65|
|Interest expense|||
|Commission charge and commission|||
|expense|||
|Cash surrender value|||
|Net amount of expense of|||
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Operating tax and extras|1,527,827.78|1,864,230.96|
|Sales expenses|1,519,370.58|972,665.59|
|Administration expenses|25,519,877.05|22,437,738.99|
|Financial expenses|39,793,501.00|55,118,101.00|
|Losses of devaluation of asset|-5,000.00||
|Add: Changing income of fair|||
||0.00||
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
||-547,076.53|-361,340.88|
|with “-”)|||
|Including: Investment income on|||
||0.00||
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|III. Operating profit (Loss is listed with|||
||-10,595,352.98|-120,456,153.58|
|“-”)|||
|Add: Non-operating income|3,906,768.35|132,071,807.24|

||||
|-|-|-|
|Including: Disposal gains of|||
||0.00|16,544.20|
|non-current asset|||
|Less: Non-operating expense|7,621,025.11|87,772.34|
|Including: Disposal loss of|||
||0.00|87,625.73|
|non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|-14,309,609.74|11,527,881.32|
|Less: Income tax expense|1,767,353.20|315,169.72|
|V. Net profit (Net loss is listed with “-”)|-16,076,962.94|11,212,711.60|
|Net profit attributable to owner’s of|||
||-7,704,809.93|29,772,589.73|
|parent company|||
|Minority shareholders’ gains and|||
||-8,372,153.01|-18,559,878.13|
|losses|||
|VI. Net after-tax of other comprehensive|||
|income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|||
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will not be reclassified subsequently to|||
|profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will be reclassified subsequently to profit|||
|or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||
|3. Gains or losses arising|||

||||
|-|-|-|
|from reclassification of held-to-maturity|||
|investment as available-for-sale financial|||
|assets|||
|4. The effect hedging portion|||
|of gains or losses arising from cash flow|||
|hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign currency|||
|financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|||
|shareholders|||
|VII. Total comprehensive income|-16,076,962.94|11,212,711.60|
|Total comprehensive income|||
||-7,704,809.93|29,772,589.73|
|attributable to owners of parent Company|||
|Total comprehensive income|||
||-8,372,153.01|-18,559,878.13|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|-0.01|0.05|
|(ii) Diluted earnings per share|-0.01|0.05|

 Legal representative: Chairman Yang Haixian
Person in charge of accounting works: Director GM Wu Xiangdong; CFO Huang Jian
Person in charge of accounting institution: Leng Jiwei (act for the financial management dept.)
4. Profit Statement of parent company (this report period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|150,882,243.89|82,716,035.10|
|Less: Operating cost|169,225,101.93|113,538,250.85|
|Operating tax and extras||1,650,810.87|
|Sales expenses|||
|Administration expenses|7,949,880.09|5,214,630.65|
|Financial expenses|1,426,086.00|13,487,840.00|
|Losses of devaluation of asset|||
|Add: Changing income of fairvalue(Loss is listed with “-”)|||
|Investment income (Loss islisted with “-”)|||

||||
|-|-|-|
|Including: Investment income|||
|on affiliated company and joint venture|||
|II. Operating profit (Loss is listed|||
||-27,718,824.13|-51,175,497.27|
|with “-”)|||
|Add: Non-operating income|2,718,431.72|131,804,597.18|
|Including: Disposal gains of|||
|||16,544.20|
|non-current asset|||
|Less: Non-operating expense|7,624,271.21||
|Including: Disposal loss of|||
|non-current asset|||
|III. Total Profit (Loss is listed with|||
||-32,624,663.62|80,629,099.91|
|“-”)|||
|Less: Income tax expense|1,413,007.16||
|IV. Net profit (Net loss is listed with|||
||-34,037,670.78|80,629,099.91|
|“-”)|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||
|3. Gains or losses arising|||

||||
|-|-|-|
|from reclassification of held-to-maturityinvestment as available-for-salefinancial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign|||
|currency financial statements|||
|6. Other|||
|VI. Total comprehensive income|-34,037,670.78|80,629,099.91|
|VII. Earnings per share:|||
|(i) Basic earnings per share|||
|(ii) Diluted earnings per share|||

5. Consolidated profit statement (from year-begin to end of this period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|1,206,573,138.41|1,030,239,250.67|
|Including: Operating income|1,206,573,138.41|1,030,239,250.67|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|1,305,532,407.49|1,411,432,057.68|
|Including: Operating cost|1,090,497,394.12|1,166,291,861.51|
|Interest expense|||
|Commission charge and commission|||
|expense|||
|Cash surrender value|||
|Net amount of expense of|||
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Operating tax and extras|4,628,113.83|5,365,809.98|

||||
|-|-|-|
|Sales expenses|3,972,760.84|3,156,377.20|
|Administration expenses|70,196,981.58|65,648,374.06|
|Financial expenses|136,242,157.12|170,969,634.93|
|Losses of devaluation of asset|-5,000.00||
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
||-1,629,936.37|-1,244,685.23|
|with “-”)|||
|Including: Investment income on|||
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|III. Operating profit (Loss is listed with|||
||-100,589,205.45|-382,437,492.24|
|“-”)|||
|Add: Non-operating income|15,728,109.02|265,761,057.54|
|Including: Disposal gains of|||
|||52,544.20|
|non-current asset|||
|Less: Non-operating expense|7,844,301.19|116,532.87|
|Including: Disposal loss of|||
||203,276.08|106,302.15|
|non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|-92,705,397.62|-116,792,967.57|
|Less: Income tax expense|2,852,363.73|803,816.89|
|V. Net profit (Net loss is listed with “-”)|-95,557,761.35|-117,596,784.46|
|Net profit attributable to owner’s of|||
||-64,159,556.17|-72,773,483.33|
|parent company|||
|Minority shareholders’ gains and|||
||-31,398,205.18|-44,823,301.13|
|losses|||
|VI. Net after-tax of other comprehensive|||
|income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|||
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||

||||
|-|-|-|
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will not be reclassified subsequently to|||
|profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will be reclassified subsequently to profit|||
|or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale financial|||
|assets|||
|4. The effect hedging portion|||
|of gains or losses arising from cash flow|||
|hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign currency|||
|financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|||
|shareholders|||
|VII. Total comprehensive income|-95,557,761.35|-117,596,784.46|
|Total comprehensive income|||
||-64,159,556.17|-72,773,483.33|
|attributable to owners of parent Company|||
|Total comprehensive income|||
||-31,398,205.18|-44,823,301.13|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|-0.11|-0.12|
|(ii) Diluted earnings per share|-0.11|-0.12|

6. Profit Statement of parent company (from year-begin to end of this period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|308,869,006.98|264,804,584.87|
|Less: Operating cost|336,178,413.47|330,896,594.87|
|Operating tax and extras|2,292,405.28|4,610,621.64|
|Sales expenses|||
|Administration expenses|18,091,535.04|29,921,941.44|
|Financial expenses|21,895,482.42|41,263,236.75|
|Losses of devaluation of asset|||
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is|||
|listed with “-”)|||
|Including: Investment income|||
|on affiliated company and joint venture|||
|II. Operating profit (Loss is listed|||
||-69,588,829.23|-141,887,809.83|
|with “-”)|||
|Add: Non-operating income|4,026,012.38|221,030,496.84|
|Including: Disposal gains of|||
|||16,544.20|
|non-current asset|||
|Less: Non-operating expense|7,818,836.10||
|Including: Disposal loss of|||
||194,564.88||
|non-current asset|||
|III. Total Profit (Loss is listed with|||
||-73,381,652.95|79,142,687.01|
|“-”)|||
|Less: Income tax expense|1,413,007.16||
|IV. Net profit (Net loss is listed with|||
||-74,794,660.11|79,142,687.01|
|“-”)|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||

||||
|-|-|-|
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale|||
|financial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign|||
|currency financial statements|||
|6. Other|||
|VI. Total comprehensive income|-74,794,660.11|79,142,687.01|
|VII. Earnings per share:|||
|(i) Basic earnings per share|||
|(ii) Diluted earnings per share|||

7. Consolidated Cash Flow Statement (from year-begin to end of this period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|1,286,867,142.76|1,123,040,372.28|
|services|||

||||
|-|-|-|
|Net increase of customer deposit|||
|and interbank deposit|||
|Net increase of loan from central|||
|bank|||
|Net increase of capital borrowed|||
|from other financial institution|||
|Cash received from original|||
|insurance contract fee|||
|Net cash received from reinsurance|||
|business|||
|Net increase of insured savings and|||
|investment|||
|Net increase of amount from|||
|disposal financial assets that measured|||
|by fair value and with variation|||
|reckoned into current gains/losses|||
|Cash received from interest,|||
|commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business|||
|capital|||
|Write-back of tax received|2,310,771.15||
|Other cash received concerning|||
||163,677,716.41|497,062,438.54|
|operating activities|||
|Subtotal of cash inflow arising from|||
||1,452,855,630.32|1,620,102,810.82|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|1,125,557,782.23|1,044,522,721.52|
|service|||
|Net increase of customer loans and|||
|advances|||
|Net increase of deposits in central|||
|bank and interbank|||
|Cash paid for original insurance|||
|contract compensation|||
|Cash paid for interest, commission|||
|charge and commission|||
|Cash paid for bonus of guarantee|||
|slip|||

||||
|-|-|-|
|Cash paid to/for staff and workers|94,833,886.31|99,957,144.37|
|Taxes paid|53,310,414.00|14,266,503.05|
|Other cash paid concerning|||
||44,973,082.63|44,367,889.67|
|operating activities|||
|Subtotal of cash outflow arising from|||
||1,318,675,165.17|1,203,114,258.61|
|operating activities|||
|Net cash flows arising from operating|||
||134,180,465.15|416,988,552.21|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term||53,134.00|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
|||53,134.00|
|activities|||
|Cash paid for purchasing fixed,|||
||12,560,838.09|25,378,214.80|
|intangible and other long-term assets|||
|Cash paid for investment|2,000,000.00||
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||14,560,838.09|25,378,214.80|
|activities|||
|Net cash flows arising from investing|||
||-14,560,838.09|-25,325,080.80|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||

||||
|-|-|-|
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|||
|investment by subsidiaries|||
|Cash received from loans|1,965,164,173.08|2,760,160,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning|||
||5,300,000.00||
|financing activities|||
|Subtotal of cash inflow from financing|||
||1,970,464,173.08|2,760,160,000.00|
|activities|||
|Cash paid for settling debts|2,014,800,000.00|2,684,000,000.00|
|Cash paid for dividend and profit|||
||148,038,506.25|163,143,457.69|
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
||11,309,958.60||
|financing activities|||
|Subtotal of cash outflow from financing|||
||2,174,148,464.85|2,847,143,457.69|
|activities|||
|Net cash flows arising from financing|||
||-203,684,291.77|-86,983,457.69|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|170,698.12|220,874.05|
|exchange rate|||
|V. Net increase of cash and cash|||
||-83,893,966.59|304,900,887.77|
|equivalents|||
|Add: Balance of cash and cash|||
||1,016,326,480.06|568,494,957.02|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||932,432,513.47|873,395,844.79|
|equivalents at the period -end|||

8. Cash Flow Statement of parent company (from year-begin to end of this period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|660,592,522.11|388,474,294.64|
|services|||

||||
|-|-|-|
|Write-back of tax received|||
|Other cash received concerning|||
||160,498,932.06|623,782,976.85|
|operating activities|||
|Subtotal of cash inflow arising from|||
||821,091,454.17|1,012,257,271.49|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|486,124,655.15|323,930,341.25|
|service|||
|Cash paid to/for staff and workers|50,738,270.93|58,251,874.68|
|Taxes paid|15,954,491.78|8,042,781.60|
|Other cash paid concerning|||
||183,333,407.78|372,044,547.02|
|operating activities|||
|Subtotal of cash outflow arising from|||
||736,150,825.64|762,269,544.55|
|operating activities|||
|Net cash flows arising from operating|||
||84,940,628.53|249,987,726.94|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term||52,000.00|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
|||52,000.00|
|activities|||
|Cash paid for purchasing fixed,|||
||276,403.60|925,054.98|
|intangible and other long-term assets|||
|Cash paid for investment|2,000,000.00||
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
|investing activities|||

||||
|-|-|-|
|Subtotal of cash outflow from investing|||
||2,276,403.60|925,054.98|
|activities|||
|Net cash flows arising from investing|||
||-2,276,403.60|-873,054.98|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|1,520,000,000.00|1,954,000,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning|||
||5,300,000.00||
|financing activities|||
|Subtotal of cash inflow from financing|||
||1,525,300,000.00|1,954,000,000.00|
|activities|||
|Cash paid for settling debts|1,755,500,000.00|1,839,000,000.00|
|Cash paid for dividend and profit|||
||103,820,617.30|115,101,312.76|
|distributing or interest paying|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from financing|||
||1,859,320,617.30|1,954,101,312.76|
|activities|||
|Net cash flows arising from financing|||
||-334,020,617.30|-101,312.76|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|2,226.64|2,196.68|
|exchange rate|||
|V. Net increase of cash and cash|||
||-251,354,165.73|249,015,555.88|
|equivalents|||
|Add: Balance of cash and cash|||
||675,408,711.65|332,803,493.04|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||424,054,545.92|581,819,048.92|
|equivalents at the period -end|||

II. Audit Report
Whether the third quarter report was audited or not
□Yes√No
The third quarter report of the Company has not been audited.