Chongqing Jianshe Motorcycle Co., Ltd.
The 3 Quarterly Report 2015
rd
2015-078
October 2015
1 Important notes
The Board ofDirectors，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.
Directors other than the following ones have attended the board meeting to review the interim report.
|||||
|-|-|-|-|
|Name of absent director|Position of absent director|Reason|Name of proxy|
|Li Huaguang|Board chairman|Business trip|Lv Hongxian|

Mr. Li Huaguang, The Company Leader, Mr.Teng Feng , Chief financial officer and the Mr.Liao Jian, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in the report.
II.Main financial data and changes of shareholders
（I）Main accounting data and financial Index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not.
□ Yes√ No
||||||
|-|-|-|-|-|
||||As at the end of last|Changed （%）over end|
||As at the end of the reporting period||||
||||year|of prev. year|
|Gross assets（RMB）|2,560,006,751.21||2,389,211,010.43|7.15%|
|Net assets attributable to the|-118,486,362.06||17,321,196.61||
|shareholders of the listed||||-784.05%|
|company（RMB）|||||
|||Increase/decrease over|Between beginning of||
|||||Changed （%）over|
||Reporting period|the same period of last|the year to the end of||
|||||end of prev. year|
|||year（%）|the report period||
|Operating income（RMB）|303,960,771.84|-21.50%|1,023,616,474.31|-23.29%|
|Net profit attributable to the|-64,918,870.00||-135,807,558.67||
|shareholders of the listed||63.20%||36.32%|
|company（RMB）|||||
|Net profit after deducting of|||||
|non-recurring gain/loss|||||
||-72,484,859.14|80.78%|-144,247,406.23|48.71%|
|attributable to the shareholders|||||
|of listed company（RMB）|||||
|Cash flow generated by|||-726,746.51||
||--|--||-100.49%|
|business operation, net（RMB）|||||
|Basic earning per|-0.5438||-11,377||
|||63.20%||-30.31%|
|share(RMB/Share)|||||
|Diluted gains per|-0.5438||-11,377||
|||63.20%||-30.31%|
|share(RMB/Share)(RMB/Share)|||||
|Weighted average income/asset|||||
||128.34%|-167.68%|268.49%|-367.02%|
|ratio（%）|||||

Items and amount of non-current gains and losses
√Applicable□Not applicable
In RMB
||||
|-|-|-|
||Amount (Year-beginning||
|Items||Notes|
||to the end of the report||

||||
|-|-|-|
||period.)||
|Non-current asset disposal gain/loss(including the write-off part for which assets|||
||3,222,154.87||
|impairment provision is made)|||
|Govemment subsidy recognized in current gain and loss(excluding those closely related to|||
||1,182,000.00||
|the Company’s business and granted under the state’s policies)|||
|Gains and losses from exchange of non-monetary assets|205,148.13||
|Other non-business income and expenditures other than the above|3,830,544.56||
|Total|8,439,847.56|--|

 For theCompany’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.
□Applicable√ Not applicable
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.
(II) Total number of shareholders and shareholding of top 10 shareholders by the end of the report period
(1) Total number of common shareholders and shareholding of top 10 common shareholders by the end of the report period In Shares
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of shareholders at the||||||||
|||8,994||||||
|end of report period||||||||
|Particular about shares held by top ten shareholders||||||||
||||||Amount of tradable|Pledging or freezing||
||Properties of||Share|||||
|Shareholder name||||Quantity|shares with|Status of the||
||shareholder||proportion %||||Quantity|
||||||Conditional held|shares||
|China Southern IndustryGroup Co., Ltd.|State-owned legalperson||71.13%|84,906,250|84,906,250|||
|Gu Zuocheng|Domestic naturalperson||1.89%|2,261,000|2,218,750|||
|Anhui Hengsheng EconomicDevelopment Group Co., Ltd.|Domesticnon-state-ownedlegal person||1.47%|1,750,000|1,750,000|||
|Feng Yonghui|Domestic naturalperson||0.42%|500,000|500,000|||
|Liu Dan|Domestic naturalperson||1.07%|1,276,001|0|||
|Shanghai Hong Kong WanguoSecurities|Overseas legalperson||0.56%|670,500|0|||

||||||||
|-|-|-|-|-|-|-|
|Chen Xinqiang|Domestic naturalperson||0.56%|663,252|0||
|Xu Yuanhui|Domestic naturalperson||0.39%|460,789|0||
|Feng Yongxia|Domestic naturalperson||0.32%|387,175|0||
|Hu Zhihong|Domestic naturalperson||0.31%|366,864|0||
|Shareholding of top 10 shareholders of unrestricted shares|||||||
|||Quantity of unrestricted shares||Share type|||
|Name of the shareholder||held at the end of the reporting|||||
|||||Share type||Quantity|
|||period|||||
|Liu Dan||1,276,001||Foreign shares placed in domestic|||
|||||||1,276,001|
|||||exchange|||
|Shanghai Hong Kong WanguoSecurities||670,500||Foreign shares placed in domestic|||
|||||||670,500|
|||||exchange|||
|Chen Xinqiang||663,252||Foreign shares placed in domestic|||
|||||||663,252|
|||||exchange|||
|Xu Yuanhui||460,789||Foreign shares placed in domestic|||
|||||||460,789|
|||||exchange|||
|Feng Yongxia||387,175||Foreign shares placed in domestic|||
|||||||387,175|
|||||exchange|||
|Hu Zhihong||366,864||Foreign shares placed in domestic|||
|||||||366,864|
|||||exchange|||
|Yu Lingfeng||350,525||Foreign shares placed in domestic|||
|||||||350,525|
|||||exchange|||
|Zhang Huaian||330,000||Foreign shares placed in domestic|||
|||||||330,000|
|||||exchange|||
|Xue Fang||250,000||Foreign shares placed in domestic|||
|||||||250,000|
|||||exchange|||
|He Lizhuan||242,025||Foreign shares placed in domestic|||
|||||||242,025|
|||||exchange|||
|||There isn‘t any associated relationship between the sponsoring shareholder and the other|||||
|Explanation on associated||shareholders among the top-10 list. None of them are regarded as ‗Acting in concert‘ in|||||
|relationship among the aforesaid||accordance with ‗The rules of information disclosure on change of shareholding.‘ Foreign|||||
|shareholders||shareholders are unknown for their condition of ‗Associated relationship‘ and ‗Acting in|||||
|||concert‘.|||||

Agreed re-purchasing by theCompany’s top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
□ Yes√ No
No agreed re-purchasing is performed by theCompany’s shareholders in the report period.
(2) Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period□Applicable√ Not applicable
III. Significant Issues
I. Particulars and causations of material change in major accounting items and indices
√Applicable□ Not applicable
The main reason for the changes in the financial indicators of the Net asset profit attributable to the shareholders of the listed company ,Net profit attributable to the shareholders of the listed company, Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company, Net Cash flow generated by business operation, Earning per share and
the net assets of the shareholders of the listed company is the decline in the size of the company's motorcycle business and the profit loss due to the decrease in the investment income of the joint venture.
II. Analyze of significant issues and solutions
√Applicable□ Not applicable
(1) Major litigation matters
On July 17, 2013, Ningbo Zhenghai Yongzheng Investment Co., Ltd. sued to Chongqing Municipal Fifth IntermediatePeople’s Court, requesting Chongqing Motorcycle Co., Ltd. to bear the related discharge duty for the debt of RMB3.1943 million from Ningbo Construction Motorcycle Manufacturing Co., Ltd. and assume the legal fare of this case on the grounds of Chongqing Motorcycle Co., Ltd. and Sun Weibao unable to do liquidation for the subsidiary company - Ningbo Construction Motorcycle Manufacturing Co., Ltd.. The case was held on January 16th, 2014 and made the first judgment on May 22, 2014, and sentenced the company and Sun Weibao to bear discharge duty for the debt of RMB3.1943 million and the legal fare of this case for RMB32400. After the first judgment, the company believed that the facts of the court of first instance were not clear, and the application of the law was wrong, and then the company sued to Chongqin Municipal HigherPeople’s Court on May 28, 2014 and the court accepted.
In 2014, the company has fully withdrawn the estimated debt of RMB3.2267 million according to the first judgment.
On August 30, 2015, Chongqin Municipal HigherPeople’s Court made the final judgment, withdrawn the civil judgment(2013) Yu-Wu-Zhong-Fa-Min-Chu-Zi No.00637 by Chongqin Municipal Fifth IntermediatePeople’s Court, sentenced Sun Weibao to bear the discharge duty for the debt of RMB3.1943 million from the plaintiff Yongzheng Investment in view of Ningbo Construction Manufacturing, and assume the costs of the first and the second trials of this case, and rejected the sue made by Yongzheng Investment to the company.
In the semi-annual period of 2014, the company has fully withdrawn the estimated debt for the total RMB3.2267 million according to the judgment that was made by Chongqin Municipal Fifth IntermediatePeople’s Court on May 22,2014, and sentenced the company and Sun Weibao to bear the discharge duty for the debt of RMB3.1943 million and the legal fare for the case of RMB32400. Now the company has made accounting flush treatment to the previous withdrawn estimated debt in the third quarter of 2015 according to the civil judgment(2014) Yu-Gao-Fa-Min-Zhong- Zi No.00323 by Chongqin Municipal HigherPeople’s Court.
(2) Major assets restructuring matters
The company intends to transfer the main assets and liabilities of motorcycles business to the controlling shareholder, namely, China South Industries Group Corporation, andit’s estimated that the total amount of transferred assets accounts for more than50% of the total closing assets in the audited consolidated financial accounting report of the last fiscal year. According to the provisions of “Management Measures of Major Asset Restructuring of Listed Company”, the assets transfer matter is made for the major assets restructuring.
||||
|-|-|-|
|Summary of material issues|Date of disclosure|Index of provisional announcement|
|Major litigation matters|July 12, 2014|Disclosure in announcement No. 2014-056 with Securities Times, Hong|
|||Kong Commercial Daily, and www.cninfo.com.cn.|
|||Disclosure in announcement No. 2014-067 with Securities Times, Hong|
||September 9, 2015||
|||Kong Commercial Daily, and www.cninfo.com.cn.|
|Major assets restructuringmatters||Another respectively in August 7, 2015, August 14, August 21, August 28,|
|||September 8, September 15,September 22 and September 29 disclosed|
||July 31, 2015||
|||restructuring progress in the "Securities Times", "Hong Kong Commercial|
|||Daily" and www.cninfo.com.cn, Announcement No.|
|||2015-048,049,051,052,053,066,068,071,072 and 074.|

III．The commitments of the Company and its shareholders holding over5% of theCompany’s total shares in the report year of extending to the report year from previous year.
□ Applicable√Not applicable
There was no commitments made by the company or shareholders holding over5% of the company's shares in the reporting period or such commitments carried down into the reporting period.
IV．Prediction of Business performance for 2015.
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason.
□ Applicable√Not applicable
V. Security investments
□ Applicable√Not applicable
The Company did not have any security investments during the reporting period.
VI. Equity interests held in other listed companies
□ Applicable√Not applicable
The Company did not hold any equity interests in other listed companies as at the end of the reporting period.
VII. Derivatives investments
□ Applicable√Not applicable
The Company did not have any derivative investments during the reporting period.
VIII. The registration form of acceptance of investigation, communication and interview in the report period for future reference√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
|||||Parties||
||Place of|Manner of|Class of parties||Main topics of discussion and|
|Date of reception||||accommodate||
||reception|reception|accommodated||information provided|
|||||d||
||||||Q: Except for the asset sales of the|
||||||Company’s reorganization, does the|
||||||holding shareholder have the plan on|
||||||injecting good-quality assets to A Share|
||||||or B Share?|
|||Telephone|||A: The Company’s reorganization only|
|August 7, 2015|The Company||Individual|Investor||
|||communication|||involves to the prime asset and the main|
||||||liability of the motorbike business|
||||||transferred to the holding shareholder. At|
||||||present, the Company has not known|
||||||whether the holding shareholder has|
||||||other related arrangements and plans.|
||||||Q: How is the progress of the Company’s|
||||||organization and when will the trading|
||||||resume?|
||||||A: At present, the independent financial|
||||||adviser, the special legal adviser, the|
||||||audit institution and the appraisal|
||||||institution hired by the Company are still|
|||Telephone||||
|September 11,2015|The Company||Individual|Investor|implementing due diligence, audit and|
|||communication||||
||||||appraisal on the reorganization. The|
||||||company will continue to talk over with|
||||||related parties on asset transfer and fulfill|
||||||necessary processes of submission for|
||||||approval and deliberation. For the|
||||||resuming date , please follow the|
||||||information disclosed by the Company.|

IV. Financial statement
1. Financial statement
1.Consolidated Balance sheet
Prepared by : Chongqing Jianshe Motorcycle Co., Ltd.
September 30,2015
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|426,448,112.12|192,918,049.28|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Bill receivable|91,418,432.48|45,673,753.36|
|Account receivable|217,570,042.43|255,013,689.72|
|Prepayments|54,682,386.05|23,181,893.00|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|16,739,141.05|15,618,940.96|
|Repurchasing of financial assets|||
|Inventories|238,199,361.12|277,612,004.04|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|16,022,433.81|20,102,069.93|
|Total of current assets|1,061,079,909.06|830,120,400.29|
|Non-current assets：|||
|Loans and payment on other’s behalf disbursed|||
|Disposable financial asset|||
|Expired investment in possess|||

||||
|-|-|-|
|Long-term receivable|||
|Long term share equity investment|674,090,253.88|686,110,128.77|
|Property investment|||
|Fixed assets|682,072,958.06|715,930,693.00|
|Construction in progress|8,406,907.08|16,315,153.10|
|Engineering material|||
|Fixed asset disposal|23,606.70||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|81,053,108.53|92,488,110.55|
|R & D petrol|40,618,461.76|36,689,261.07|
|Goodwill|||
|Long-germ expenses to be amortized|8,905,417.02|7,801,134.53|
|Differed income tax asset|3,756,129.12|3,756,129.12|
|Other non-current asset|||
|Total of non-current assets|1,498,926,842.15|1,559,090,610.14|
|Total of assets|2,560,006,751.21|2,389,211,010.43|
|Current liabilities|||
|Short-term loans|646,300,000.00|803,500,000.00|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair value with variations accounted|||
|into current income account|||
|Derivative financial liabilities|||
|Bill payable|1,033,861,795.00|560,011,000.00|
|Account payable|591,591,566.10|588,221,381.72|
|Advance payment|29,048,663.05|19,883,635.95|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|6,645,057.30|3,068,735.80|
|Tax payable|132,982,916.96|136,504,668.13|
|Interest payable|||
|Dividend payable|||

||||
|-|-|-|
|Other account payable|11,767,478.37|24,887,424.31|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liability due in 1 year|80,500,000.00|111,000,000.00|
|Other current liability|||
|Total of current liability|2,532,697,476.78|2,247,076,845.91|
|Non-current liabilities：|||
|Long-term loan|144,990,000.00|121,000,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable employees’s remuneration|||
|Special payable|||
|Expected liabilities||3,226,654.00|
|Differed income|||
|Differed income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|144,990,000.00|124,226,654.00|
|Total of liability|2,677,687,476.78|2,371,303,499.91|
|Owners’ equity|||
|Share capital|119,375,000.00|119,375,000.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|960,515,317.59|960,515,317.59|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserves|||
|Surplus reserves|125,686,000.00|125,686,000.00|
|Common risk provision|||

||||
|-|-|-|
|Undistributed profit|-1,324,062,679.65|-1,188,255,120.98|
|Total of owner’s equity belong to the parent company|-118,486,362.06|17,321,196.61|
|Minority shareholders’ equity|805,636.49|586,313.91|
|Total of owners’ equity|-117,680,725.57|17,907,510.52|
|Total of liabilities and owners’ equity|2,560,006,751.21|2,389,211,010.43|

 Legal Representative: Li Huaguang Person in charge ofaccounting：Teng Feng Accounting Dept Leader: Liao Jian 2.Parent Company Balance Sheet
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|115,140,850.81|91,357,585.62|
|Financial assets measured at fair value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Bill receivable|210,000.00|29,995,643.90|
|Account receivable|2,205,653.17|26,337,349.85|
|Prepayments|15,014,771.12|9,953,627.54|
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|264,968,341.63|242,329,759.01|
|Inventories|53,469,887.14|63,334,869.40|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|12,292,552.33|12,315,142.81|
|Total of current assets|463,302,056.20|475,623,978.13|
|Non-current assets：|||
|Disposable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|911,861,790.46|833,881,665.35|
|Property investment|||
|Fixed assets|487,217,924.71|580,792,688.69|
|Construction in progress|2,159,418.98|15,962,346.19|

||||
|-|-|-|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|68,966,399.77|80,167,159.69|
|R & D petrol|40,618,461.76|36,689,261.07|
|Goodwill|||
|Long-germ expenses to be amortized|3,658,666.54|2,420,539.48|
|Differed income tax asset|||
|Other non-current asset|||
|Total of non-current assets|1,514,482,662.22|1,549,913,660.47|
|Total of assets|1,977,784,718.42|2,025,537,638.60|
|Current liabilities|||
|Short-term loans|452,300,000.00|546,000,000.00|
|Financial liabilities measured at fair value with variations accounted|||
|into current income account|||
|Derivative financial liabilities|||
|Bill payable|359,004,000.00|240,011,000.00|
|Account payable|550,153,603.82|562,631,216.39|
|Advance payment|4,660,774.84|3,927,911.39|
|Employees’ wage payable|2,821,527.99|1,844,709.68|
|Tax payable|135,927,231.37|135,863,482.56|
|Interest payable|||
|Dividend payable|||
|Other account payable|249,146,732.34|203,369,913.46|
|Liabilities held for sales|||
|Non-current liability due in 1 year|16,000,000.00|28,000,000.00|
|Other current liability|||
|Total of current liability|1,770,013,870.36|1,721,648,233.48|
|Non-current liabilities：|||
|Long-term loan|120,000,000.00|114,000,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||

||||
|-|-|-|
|Long-term payable|||
|Employees’ wage Long-term payable|||
|Special payable|||
|Expected liabilities||3,226,654.00|
|Differed income|||
|Differed income tax liability|||
|Other non-current liabilities|||
|Total of Non-current liabilities|120,000,000.00|117,226,654.00|
|Total of liability|1,890,013,870.36|1,838,874,887.48|
|Owners’ equity|||
|Share capital|119,375,000.00|119,375,000.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|958,575,094.29|958,575,094.29|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserves|||
|Surplus reserves|125,686,000.00|125,686,000.00|
|Undistributed profit|-1,115,865,246.23|-1,016,973,343.17|
|Total of owners’ equity|87,770,848.06|186,662,751.12|
|Total of liabilities and owners’ equity|1,977,784,718.42|2,025,537,638.60|

 3.Consolidated Profit statement of the Report period
In RMB
||||
|-|-|-|
|||Same period of the previous|
|Item|Report period||
|||year|
|I. Income from the key business|303,960,771.84|387,215,817.54|
|Incl：Business income|303,960,771.84|387,215,817.54|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|385,173,101.80|436,458,472.89|

||||
|-|-|-|
|Incl：Business cost|316,739,370.82|351,654,269.16|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Insurance policy dividend paid|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|931,709.29|3,955,805.21|
|Sales expense|13,015,778.80|22,334,961.57|
|Administrative expense|30,827,522.19|39,929,836.40|
|Financial expenses|14,734,547.63|18,583,600.55|
|Asset impairment loss|8,924,173.07||
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|10,717,367.10|9,211,119.65|
|Incl: investment gains from affiliates|10,717,367.10|9,211,119.65|
|Gains from currency exchange（“-”for loss）|||
|III. Operational profit（“-”for loss|-70,494,962.86|-40,031,535.70|
|Add：Non-business income|7,595,741.57|556,123.69|
|Incl：Gains from disposal of non-current assets|||
|Less：Non business expenses|29,752.43|238,132.19|
|Incl：Loss from disposal of non-current assets|181,477.86|227,865.52|
|IV.Total profit(“-”for loss)|-62,928,973.72|-39,713,544.20|
|Less：Income tax expenses|1,900,237.21||
|V. Net profit（“-”for net loss|-64,829,210.93|-39,713,544.20|
|Net profit attributable to the owners of parent company|-64,918,870.00|-39,778,494.08|
|Minority shareholders’ equity|89,659.07|64,949.88|
|VI. Net after-tax of Other comprehensive income|||
|Net after-tax|||
|of other comprehensive income attributable to owners of the parent c|||
|ompany.|||
|（I）Other comprehensive income items that will not be reclassified|||
|into gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt or|||
|net assets|||

||||
|-|-|-|
|2.Other comprehensive income under the equity method investee can|||
|not be reclassified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be reclassified into profit or lo|||
|ss.|||
|1.Other comprehensive income under the equity method investee can|||
|be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale financ|||
|ial assets|||
|3.Held-to-maturity investments reclassified to gains and losses of ava|||
|ilable for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial statements|||
|6.Other|||
|Net after-tax of other comprehensive income attributable to Minority|||
|shareholders’ equity|||
|VII. Total comprehensive income|-64,829,210.93|-39,713,544.20|
|Total comprehensive income attributable to the owner of the parent|||
||-64,918,870.00|-39,778,494.08|
|company|||
|Total comprehensive income attributable minority shareholders|89,659.07|64,949.88|
|VIII. Earnings per share|||
|（I）Basic earnings per share|-0.5438|-0.3332|
|(II)Diluted earnings per share|-0.5438|-0.3332|

 The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0, last period the combined party realized RMB 0.
Legal Representative: Li Huaguang Person in charge ofaccounting：Teng Feng Accounting Dept Leader: Liao Jian 4. Profit statement of the Parent Company of the Report period
In RMB
||||
|-|-|-|
|||Same period of the previous|
|Items|Report period||
|||year|
|I. Income from the key business|253,400,153.07|260,598,287.58|
|Incl：Business cost|273,182,721.40|254,934,902.57|
|Business tax and surcharge||3,125,295.83|
|Sales expense|2,331,938.33|4,141,092.49|
|Administrative expense|19,375,786.54|29,784,021.96|

||||
|-|-|-|
|Financial expenses|12,165,490.62|10,804,061.17|
|Asset impairment loss|-6,659.35||
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|10,717,367.10|9,211,119.65|
|Incl: investment gains from affiliates|10,717,367.10|9,211,119.65|
|II. Operational profit（“-”for loss|-42,931,760.37|-32,979,966.79|
|Add：Non-business income|3,860,227.05|249,123.69|
|Incl：Gains from disposal of non-current assets|||
|Less：Non business expenses|-36,843.81|193,235.81|
|Incl：Loss from disposal of non-current assets|143,592.74|193,235.81|
|III.Total profit(“-”for loss)|-39,034,689.51|-32,924,078.91|
|Less：Income tax expenses|||
|IV. Net profit（“-”for net loss）|-39,034,689.51|-32,924,078.91|
|V. Net after-tax of Other comprehensive income|||
|（I）Other comprehensive income items that will not be reclassified|||
|into gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt or|||
|net assets|||
|2.Other comprehensive income under the equity method investee can|||
|not be reclassified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be reclassified into profit or lo|||
|ss.|||
|1.Other comprehensive income under the equity method investee can|||
|be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale financ|||
|ial assets|||
|3.Held-to-maturity investments reclassified to gains and losses of ava|||
|ilable for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial statements|||
|6.Other|||
|VI. Total comprehensive income|-39,034,689.51|-32,924,078.91|
|VII. Earnings per share：|||
|（I）Basic earnings per share|-0.3270|-0.2758|
|(II)Diluted earnings per share|-0.3270|-0.2758|

5. Consolidated Profit statement between the beginning of the year and end of the report period
In RMB
||||
|-|-|-|
|||Same period of the previous|
|Items|Report period||
|||year|
|I. Total operating income|1,023,616,474.31|1,334,386,694.49|
|Including：Operating income|1,023,616,474.31|1,334,386,694.49|
|Interest income|||
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|1,186,848,835.77|1,457,459,436.30|
|Including：Operating cost|952,851,489.63|1,182,064,004.19|
|Interest expense|||
|Commission chare 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|2,668,741.97|15,157,829.25|
|Sales expenses|53,340,548.64|71,039,985.95|
|Administration expenses|102,376,126.30|121,404,667.44|
|Financial expenses|66,663,376.39|68,861,052.34|
|Losses of devaluation of assets|8,948,552.84|-1,068,102.87|
|Add ：Changing income of fair value|||
|Investment income|22,440,125.11|26,369,207.80|
|Including：Investment income on affiliate company and joint venture|22,440,125.11|26,573,207.80|
|Exchange income|||
|III. Operating profit|-140,792,236.35|-96,703,534.01|
|Add ：Non-operating income|8,838,065.55|965,397.90|
|Including :Disposal Gains of non-current assets|||
|Less：Non-operating expense|398,217.99|3,588,618.41|
|Including :Disposal loss of non-current assets|199,709.55|338,348.89|
|IV. Total profit|-132,352,388.79|-99,326,754.52|

||||
|-|-|-|
|Less：Income tax|3,235,847.30|218,486.34|
|V. Net profit（“-”for net loss|-135,588,236.09|-99,545,240.86|
|Net profit attributable to the owners of parent company|-135,807,558.67|-99,620,514.32|
|Minority shareholders’ equity|219,322.58|75,273.46|
|VI. Net after-tax of Other comprehensive income|||
|Net after-tax of|||
|other comprehensive income attributable to owners of the parent com|||
|pany.|||
|（I）Other comprehensive income items that will not be reclassified|||
|into gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt or|||
|net assets|||
|2.Other comprehensive income under the equity method investee can|||
|not be reclassified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be reclassified into profit or lo|||
|ss.|||
|1.Other comprehensive income under the equity method investee can|||
|be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale financ|||
|ial assets|||
|3.Held-to-maturity investments reclassified to gains and losses of ava|||
|ilable for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial statements|||
|6.Other|||
|Net after-tax of other comprehensive income attributable to Minority|||
|shareholders’ equity|||
|VII. Total comprehensive income|-135,588,236.09|-99,545,240.86|
|Total comprehensive income attributable to the owner of the parent|||
||-135,807,558.67|-99,620,514.32|
|company|||
|Total comprehensive income attributable minority shareholders|219,322.58|75,273.46|
|VIII. Earnings per share|||
|（I）Basic earnings per share|-11,377|-0.8345|
|(II)Diluted earnings per share|-11,377|-0.8345|

The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0,
last period the combined party realized RMB 0.
6.Profit Statement of the Parent Between the Beginning of the Year and End of the Report Period
In RMB
||||
|-|-|-|
|||Same period of the previous|
|Items|Report period||
|||year|
|I. Business income|808,197,594.02|1,088,769,334.21|
|Less：Business cost|816,874,207.57|1,030,129,904.46|
|Business tax and surcharge|139,356.48|12,126,612.72|
|Sales expense|8,010,371.37|11,800,479.37|
|Administrative expense|69,040,427.91|91,653,638.66|
|Financial expenses|39,216,626.81|35,675,006.94|
|Asset impairment loss||1,543.84|
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|22,440,125.11|26,369,207.80|
|Incl: investment gains from affiliates|22,440,125.11|26,573,207.80|
|II. Operational profit|-102,643,271.01|-66,248,643.98|
|Add：Non-business income|4,004,486.74|409,345.02|
|Incl：Gains from disposal of non-current assets|||
|Less：Non business expenses|253,118.79|3,436,172.50|
|Incl：Loss from disposal of non-current assets|147,576.58|197,219.65|
|III.Total profit|-98,891,903.06|-69,275,471.46|
|Less：Income tax expenses|||
|IV. Net profit）|-98,891,903.06|-69,275,471.46|
|V. Net after-tax of Other comprehensive income|||
|（I）Other comprehensive income items that will not be reclassified|||
|into gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt or|||
|net assets|||
|2.Other comprehensive income under the equity method investee can|||
|not be reclassified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be reclassified into profit or lo|||
|ss.|||
|1.Other comprehensive income under the equity method investee can|||
|be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale financ|||
|ial assets|||

||||
|-|-|-|
|3.Held-to-maturity investments reclassified to gains and losses of ava|||
|ilable for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial statements|||
|6.Other|||
|VI. Total comprehensive income|-98,891,903.06|-69,275,471.46|
|VII. Earnings per share|||
|（I）Basic earnings per share|-0.8284|-0.5803|
|(II)Diluted earnings per share|-0.8284|-0.5803|

 7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period
In RMB
||||
|-|-|-|
|||Same period of the previous|
|Items|Report period||
|||year|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or rending of services|598,068,277.35|839,798,333.93|
|Net increase of customer deposits and capital kept for brother|||
|company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from other financial bodies|||
|Cash received against original insurance contract|||
|Net cash received from reinsurance business|||
|Net increase of client deposit and investment|||
|Net increase of trade financial asset disposal|||
|Cash received as interest, processing fee and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|3,780,048.68|15,990,944.94|
|Other cash received from business operation|6,318,009.31|6,430,859.86|
|Sub-total of cash inflow|608,166,335.34|862,220,138.73|
|Cash paid for purchasing of merchandise and services|401,330,262.17|479,754,239.92|
|Net increase of client trade and advance|||
|Net increase of savings n central bank and brother company|||
|Cash paid for original contract claim|||

||||
|-|-|-|
|Cash paid for interest, processing fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|121,917,568.87|139,813,321.76|
|Taxes paid|29,581,259.34|45,690,416.14|
|Other cash paid for business activities|56,063,991.47|47,960,992.65|
|Sub-total of cash outflow from business activities|608,893,081.85|713,218,970.47|
|Cash flow generated by business operation, net|-726,746.51|149,001,168.26|
|II.Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment gains|34,500,000.00|35,470,000.00|
|Net cash retrieved from disposal of fixed assets, intangible assets, and|||
||1,745,492.45|210,030.00|
|other long-term assets|||
|Net cash received from disposal of subsidiaries or other operational|||
|units|||
|Other investment-related cash received|0.00|0.00|
|Sub-total of cash inflow due to investment activities|36,245,492.45|35,680,030.00|
|Cash paid for construction of|||
|fixed assets, intangible assets|36,266,477.05|5,455,022.85|
|and other long-term assets|||
|Cash paid as investment|||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|||
|Sub-total of cash outflow due to investment activities|36,266,477.05|5,455,022.85|
|Net cash flow generated by investment|-20,984.60|30,225,007.15|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Incl: Cash received as investment from minor shareholders|||
|Cash received as loans|676,790,000.00|1,044,816,336.53|
|Cash received from bond placing|||
|Other financing –related ash received|1,086,760,170.89|1,160,875,547.79|
|Sub-total of cash inflow from financing activities|1,763,550,170.89|2,205,691,884.32|
|Cash to repay debts|896,493,777.77|1,067,023,580.26|
|Cash paid as dividend, profit, or interests|74,235,157.05|59,134,496.96|
|Incl: Dividend and profit paid by subsidiaries to minor shareholder|||

||||
|-|-|-|
|Other cash paid for financing activities|765,421,153.45|1,358,823,446.10|
|Sub-total of cash outflow due to financing activities|1,736,150,088.27|2,484,981,523.32|
|Net cash flow generated by financing|27,400,082.62|-279,289,639.00|
|IV. Influence of exchange rate alternation on cash and cash|||
||658,789.32|375,109.88|
|equivalents|||
|V.Net increase of cash and cash equivalents|27,311,140.83|-99,688,353.71|
|Add: balance of cash and cash equivalents at the beginning of term|35,555,585.06|170,222,347.76|
|VI ..Balance of cash and cash equivalents at the end of term|62,866,725.89|70,533,994.05|

 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|344,290,602.23|560,571,708.44|
|Tax returned|1,694,201.68|6,508,747.09|
|Other cash received from business operation|1,644,115.23|1,307,021.87|
|Sub-total of cash inflow|347,628,919.14|568,387,477.40|
|Cash paid for purchasing of merchandise and services|388,155,888.23|458,500,005.97|
|Cash paid to staffs or paid for staffs|100,882,686.82|108,753,856.29|
|Taxes paid|4,250,158.05|15,227,875.74|
|Other cash paid for business activities|14,880,600.89|13,842,092.81|
|Sub-total of cash outflow from business activities|508,169,333.99|596,323,830.81|
|Cash flow generated by business operation, net|-160,540,414.85|-27,936,353.41|
|II.Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment gains|34,500,000.00|35,470,000.00|
|Net cash retrieved from disposal of fixed assets, intangible assets, and|||
||98,316.45|200,600.00|
|other long-term assets|||
|Net cash received from disposal of subsidiaries or other operational|||
|units|||
|Other investment-related cash received|0.00|0.00|
|Sub-total of cash inflow due to investment activities|34,598,316.45|35,670,600.00|
|Cash paid for construction of|||
|fixed assets, intangible assets|3,089,458.19|4,372,886.05|
|and other long-term assets|||

||||
|-|-|-|
|Cash paid as investment|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|||
|Sub-total of cash outflow due to investment activities|3,089,458.19|4,372,886.05|
|Net cash flow generated by investment|31,508,858.26|31,297,713.95|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|487,300,000.00|748,000,000.00|
|Cash received from bond placing|||
|Other financing –related ash received|1,611,596,145.98|2,073,960,011.01|
|Sub-total of cash inflow from financing activities|2,098,896,145.98|2,821,960,011.01|
|Cash to repay debts|587,000,000.00|770,200,000.00|
|Cash paid as dividend, profit, or interests|44,687,461.87|36,351,587.47|
|Other cash paid for financing activities|1,352,193,593.00|2,116,845,316.50|
|Sub-total of cash outflow due to financing activities|1,983,881,054.87|2,923,396,903.97|
|Net cash flow generated by financing|115,015,091.11|-101,436,892.96|
|IV. Influence of exchange rate alternation on cash and cash|||
||0.00|0.00|
|equivalents|||
|V.Net increase of cash and cash equivalents|-14,016,465.48|-98,075,532.42|
|Add: balance of cash and cash equivalents at the beginning of term|22,292,965.15|148,232,292.69|
|VI ..Balance of cash and cash equivalents at the end of term|8,276,499.67|50,156,760.27|

 II.Auditor‘s report
Whether the Q3 report is audited
□ Yes√ No
The Q3 Report is not audited.