SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD. FULL TEXT OF FIRST QUARTERLY REPORT OF 2017 Part I Important Notice
The Board of Directors, the Board of Supervisor, directors, supervisors and senior management guarantee that there are no omissions, misstatement, or misleading information in this quarterly report. The directors, supervisors and senior management are responsible, individually and jointly, for the authenticity, accuracy and integrity of the information herein.
All directors attended the board meeting.
Mr. Tian Junyan, Chairman of the Board, Mdm. Yu Zhongxia, Deputy General Manager&Financial Controller&Board Secretary and Mdm. Sun Yuhui, Financial Manager, all guarantee the authenticity and integrity of the financial result in this report.
The report is written in both Chinese and English. In case of conflict between the two versions, Chinese version shall prevail.
PART II Basic Situation
I. Major Accounting Data
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□ Yes√ No
|||||
|-|-|-|-|
||January to March, 2017|January to March, 2016|Change（%）|
|Operating Revenue(RMB)|170,278,946.93|164,424,597.76|3.56%|
|Net Profit Attributed to Shareholders of|82,409.67|9,311,019.07||
||||-99.11%|
|Listed Company (RMB)||||
|Net Profit after Deducting Non-recurring||||
||-639,791.07|8,553,393.49|-107.48%|
|Gains& Losses(RMB)||||
|Net Cash Flows from Operating|62,129,217.52|74,546,903.86||
||||-16.66%|
|Activities(RMB)||||
|Basic Earnings per Share (RMB/Share)|0.0004|0.0400|-99.00%|
|Diluted Earnings per Share (RMB/Share)|0.0004|0.0400|-99.00%|
|Weighted Average Return on Equity（%）|0.00%|0.53%|-0.53%|
||March 31, 2017|December 31, 2016|Change（%）|
|Total Assets(RMB)|7,666,324,428.75|7,549,041,526.12|1.55%|
|Owner’s Equity Attributed to Shareholders|1,757,218,359.85|1,756,836,179.91||
||||0.02%|
|of Listed Company(RMB)||||

Items of Non-recurring Gains and Losses
√ Applicable□Inapplicable
Unit: RMB
||||
|-|-|-|
|Item|January to March, 2017|Note|
|Disposal of non-current assets, including the part offset with the|||
||31,154.25||
|provision for impairment of assets|||
|Government grants recognized in current year’s profit or loss (except|||
||417,807.94||
|for the fixed or quantitative government grants closely related to the|||
|enterprise businesses according to the national unified standard)|||
|Other non-operating revenue and expenditure excluding the|||
||690,778.06||
|above-mentioned items|||
|Less: Influence on income tax|249,505.88||
|Influence on minority interest (after tax)|168,033.63||
|Total|722,200.74|--|

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√ Inapplicable
II. Number of Shareholders and Shares Held by Top Ten Shareholders
1. Total Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights and Particulars about Top Ten Shareholders at Period-end
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Total Number of Preference|||||||
||||Shareholders with Resumed|||||||
|Total shareholders in reporting period||5,610|||||0|||
||||Voting Rights at Period-end|||||||
||||(if any)|||||||
|Top Ten Common Shareholders||||||||||
|||||||||Impawned or Frozen||
|||Ratio||Total shares|Non-tradable|||||
|Name|Nature|||||||Shares||
|||（％）||held|shares|||||
|||||||||Status|Shares|
|CHINA NANSHAN DEVELOPMENT(GROUP) INCORPORATION|Domestic Legal Person|51.79%||119,420,000|119,420,000|||||
|||||||||-|0|
|China Logistics Holding(12) PTE.LTD.|Foreign Legal Person|19.90%||45,890,000||||-|Unknown|
|GUOTAI JUNANSECURITIES(HONGKONG) LIMITED|Foreign Legal Person|1.77%||4,093,078||||||
|||||||||-|Unknown|
|CHINA MECHANTS SECURITIES(HONGKONG) LTD|State-owned Legal Person|1.58%||3,654,656||||||
|||||||||-|Unknown|
|Shenwan Hongyuan Securities (H.K.)Limited|Foreign Legal Person|1.20%||2,761,939||||||
|||||||||-|Unknown|
|HUANG YINGBIN|Domestic Natural Person|1.01%||2,336,898||||-|Unknown|
|YU ZHIXIANG|Domestic Natural Person|0.62%||1,422,339||||-|Unknown|
|Haitong International Securities CompanyLimited-Account Client|Foreign Legal Person|0.55%||1,270,866||||||
|||||||||-|Unknown|
|GREENWOODS CHINA ALPHAMASTER FUND|Foreign Legal Person|0.43%||984,693||||||
|||||||||-|Unknown|
|LI WEI|Domestic Natural Person|0.27%||618,000||||-|Unknown|
|Top Ten Tradable Shareholders||||||||||
|||||||Type||||
|Name||Tradable Shares Held||||||||
|||||||Type|||Shares|
|China Logistics Holding(12) PTE.LTD.||45,890,000||||B|||45,890,000|
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED||4,093,078||||B|||4,093,078|
|CHINA MECHANTS SECURITIES (HONGKONG) LTD||3,654,656||||B|||3,654,656|
|Shenwan Hongyuan Securities (H.K.) Limited||2,761,939||||B|||2,761,939|
|HUANG YINGBIN||2,336,898||||B|||2,336,898|
|YU ZHIXIANG||1,422,339||||B|||1,422,339|
|Haitong International Securities Company Limited-Account Client||1,270,866||||B|||1,270,866|
|GREENWOODS CHINA ALPHA MASTER FUND||984,693||||B|||984,693|
|LI WEI||618,000||||B|||618,000|
|SUN HUNG KAI INVESTMENT SERVICES LTD||567,412||||B|||567,412|
|||Among the top ten shareholders, the domestic legal entity||||||||
|||shareholder, China Nanshan Development (Group)||||||||
|||Incorporation has no affiliated relations with other||||||||
|Explanation for the Affiliated Relations or United Action of the Top||shareholders and does not fall into the scope of united action||||||||
|Ten Shareholders||person stipulated by “Regulation of Information Disclosure of||||||||
|||the Change of Shareholding of listed company”. It is||||||||
|||unknown that whether other tradable-share shareholders fall||||||||
|||into the scope of united action person.||||||||
|Remarks on Top Ten Shareholders Involved in Securities Margin||||||||||
|||N/A||||||||
|Trading||||||||||

Whether shareholders appointed repurchase transaction during reporting period
□ Yes√ No
2. Preferred Shares
□ Applicable√ Inapplicable
Part III Significant Events
I. Explanations on Significant Changes for Main Accounting Data and Financial Indicators.
√ Applicable□Inapplicable
Unit: RMB
|||||||
|-|-|-|-|-|-|
|No|Items|1st Quarter of2017/|1st Quarter of2016/|Change(%)|Causes for Difference|
|||Mar 31, 2017|Dec 31, 2016|||
|1|Prepayments|2,016,767.91|748,064.45|169.60%|Mainly due to prepayment for insuranceexpenses for 2017|
|2|Interest receivable|679,269.26|423,404.92|60.43%|Mainly due to increase of deposit interest|
|3|Other receivables|88,741,364.13|63,863,606.97|38.95%|Mainly due to payment for land deposit|
|4|Short-termborrowings|1,614,000,000.00|850,000,000.00|89.88%|Mainly due to increase of bank short-termborrowings|
|5|Notes payable|29,607,185.35|16,200,019.20|82.76%|Mainly due to payment for construction inprogress in the form of commercial paper|
|6|Accounts payable|17,180,844.94|11,500,505.03|49.39%|Mainly due to increase of land rental payable|
|7|Receipts in advance|5,495,716.81|9,185,065.04|-40.17%|Mainly due to warehousing service chargereceived in advance last year recognized asincome in current period|
|8|Employee benefitspayable|11,449,281.56|21,162,917.90|-45.90%|Mainly due to payment for last year-end bonus|
|9|Interest payable|9,482,866.74|23,856,299.00|-60.25%|Mainly due to payment for final term interestsof medium-term|
|10|Non-currentliabilities due withinone year|240,057,978.40|633,057,978.40|-62.08%|Mainly due to repayment for medium-termnote at maturity|
|11|Other currentliabilities|50,000,000.00|564,000,000.00|-91.13%|Mainly due to loan repayment for short-termborrowing|
|12|Other non-currentliabilities|804,459,268.06|511,018,207.18|57.42%|Mainly due to increase of long-term borrowing|
|13|Business taxes andlevies|15,728,536.44|9,677,584.67|62.53%|Mainly due to accounting adjustmentaccording to the relevant regulation, No.22 of2016, named “Provisions on the accountingtreatment of VAT” issued by the Ministry ofFinance from May of last year|
|14|Selling expenses|197,841.36|521,984.66|-62.10%|Mainly due to decreased of agent fees|
|15|Impairment lossesof assets|-6,719.89|14,810.26|-145.37%|Mainly due to write off provision for bad debts|
|16|Income taxexpenses|9,122,393.45|6,749,297.02|35.16%|Mainly due to provision for deferred incometax in prior period by parent company, and nothappened in current period|
|17|Other cash receiptsrelating to operatingactivities|6,662,342.24|10,802,596.87|-38.33%|Mainly due to receipt for bidding deposit inprior period|
|18|Other cashpayments relating tooperating activities|13,758,992.16|7,207,486.19|90.90%|Mainly due to payment for provision andreturning clients’ deposit|
|19|Cash receipts frominvestment income||12,908,798.55|-100.00%|Mainly due to receipt of cash dividends fromassociated CSE in prior period|
|20|Other cash receiptsrelating to investingactivities||283,233,575.00|-100.00%|Mainly due to redemption of mature financialproducts in prior period|
|21|Cash payments toacquire or constructfixed assets,intangible assetsand other long-termassets|239,838,140.88|359,426,925.92|-33.27%|Mainly due to decrease of construction andland payments|

|||||||
|-|-|-|-|-|-|
|22|Net cash paid forthe acquisition ofsubsidiaries andother business units||171,489,525.52|-100.00%|Mainly due to acquisition of Beijing JinmuCompany in prior period|
|23|Other cashpayments relating toinvesting activities||61,056,699.50|-100.00%|Mainly due to payment for financial productsin prior period|
|24|Cash receipts fromcapital contributions||498,080,000.00|-100.00%|Mainly due to receipt of increased Blogis’registered capital by Nanshan Group at priorperiod|
|25|Cash receipts fromborrowings|864,000,000.00|101,670,000.00|749.81%|Mainly due to increase of bank loans|
|26|Other cash receiptsrelating to financingactivities|494,000,000.00|294,000,000.00|68.03%|Mainly due to increase of loans from NanshanGroup|
|27|Cash repayments ofborrowings|505,191,170.64|103,155,000.00|389.74%|Mainly due to repayment for medium-termnote at maturity|
|28|Cash payments fordistribution ofdividends or profitsor settlement ofinterest expenses|48,477,329.55|33,495,554.54|44.73%|Mainly due to increase of interests payment|
|29|Other cashpayments relating tofinancing activities|720,272,007.42|1,314,455.93|54696.21%|Mainly due to repayment loan for NanshanGroup|

II. Significant Event and its Impact, and analysis and explanation of their solutions
√ Applicable□ Inapplicable
The1st Session of 8th Board of Directors and 3rd ExtraordinaryShareholders’General Meeting in 2016 of the Company have reviewed and approved the proposal on Shenzhen New Nanshan Holdings (Group)( hereinafter referred to as “Nanshan Holdings”) issuing A share to absorb and merge Chiwan Base with raising funds. Chiwan Base would be terminated the listing position and cancelled legal personality, meanwhile Nanshan Holdings would inherit and undertake all of the assets, liabilities, business, personnel, contracts and all other rights and obligations from the Company (Chiwan Base) if such transaction is successfully approved and completed.
The above mentioned transaction plan has been approved by Shenzhen Stock Exchange, State-owned Assets Supervision and Administration Commission and the Ministry of Commerce.
Due to some uncertain policies for this matter to be clear and implement, according to the prudent decision by the Board of Directors, the Company and Nanshan Holdings have put forward application on suspending administrative review the above mentioned significant assets reconstructing plan, and received administrative notice for suspending approval issued by CSRC. The Company would restart to apply for administrative license in a timely manner. This suspension would not result in significant adverse impact.
||||
|-|-|-|
|Introduction|Disclosure Date|Disclosure Index|
|Draft on Shenzhen New Nanshan Holdings (Group) issuing Ashare to absorb and merge Chiwan Base with raising funds|||
||2016.07.02|www.cninfo.com.cn|
|Approval by State-owned assets supervision and administrationcommission on Shenzhen New Nanshan Holdings (Group)issuing A share to absorb and merge Chiwan Base with raisingfunds|||
|||www.cninfo.com.cn|
||2016.08.02||
|||Announcement No.2016-80|
|Resolution announcement for 3rd Extraordinary Shareholders'General Meeting in 2016||www.cninfo.com.cn|
||2016.08.05||
|||Announcement No. 2016-84|
|Approval by the Ministry of Commerce for significant assets forreconstructing plan||www.cninfo.com.cn|
||2016.08.30||
|||Announcement No. 2016-101|
|Acceptance Notice issued by China Securities RegulatoryCommission for significant assets reconstructing plan||www.cninfo.com.cn|
||2016.09.01||
|||Announcement No. 2016-111|
|Suspending approval of significant assets reconstructing plan||www.cninfo.com.cn|
||2016.10.10||
|||Announcement No. 2016-122|
|Receipt of administrative notice for suspending approval issuedby CSRC||www.cninfo.com.cn|
||2016.10.18||
|||Announcement No. 2016-127|

III. Extended Unfulfilled Commitment by Actual Controller, Shareholders with More than5% Shares, Relative party, Acquirer and Company
□ Applicable√ Inapplicable
IV. Prediction of Business Performance for the First Half Year of 2017
□Applicable√ Inapplicable
V. Security Investment
□Applicable√ Inapplicable
VI. Derivatives Investment
□Applicable√ Inapplicable
VII. Reception of Investors and Medias
According to relative regulations of standard operational guidelines for listed companies issued by Shenzhen Stock Exchange and working system in management of investor relationship of the Company, the Company carried out the principles of fairness, justice and publicity when receiving interview and investigation and developing activities, guaranteed all investors enjoying right to learn the truth, other lawful rights and interests, introduced practical situation of the Company and prevented the Company from leaking information and related insider dealing.
The Company has ensured the communication ways successfully for the investors and received many enquires by telephone and irm.cninfo.com.cn. But there are no investors asking for visiting on the spot or submitting written questionnaires.
VIII. Illegal Guarantee
□Applicable√ Inapplicable
IX. Non-operation Oriented Fund Occupancy by the Controlling Shareholder and/or Related Parties□Applicable√ Inapplicable
Part
Ⅳ
Financial Statements
I. Financial Statements
1.Balance Sheet
Consolidated Currency: RMB
||||
|-|-|-|
|Items|Ending Balance|Beginning Balance|
|Current Assets:|||
|Cash and bank balances|431,013,415.86|524,609,097.58|
|Accounts receivable|49,155,368.40|43,862,804.61|
|Prepayments|2,016,767.91|748,064.45|
|Interest receivable|679,269.26|423,404.92|
|Other receivables|88,741,364.13|63,863,606.97|
|Inventories|826,253.66|961,855.72|
|Other current assets|13,312,045.21|14,424,379.64|
|Total Current Assets|585,744,484.43|648,893,213.89|
|Non-current Assets:|||
|Long-term equity investments|607,865,968.12|602,194,915.06|
|Investment properties|1,607,023,919.89|1,606,049,338.07|
|Fixed assets|964,682,353.48|877,096,096.64|
|Construction in progress|545,667,500.53|601,906,964.62|
|Liquidation of fixed assets|35,208.48||
|Intangible assets|2,238,484,753.33|2,245,211,656.35|
|Development expenditure|1,025,155.17|1,330,674.42|
|Goodwill|11,133,118.55|11,133,118.55|
|Deferred tax assets|27,753,017.90|24,317,786.92|
|Other non-current assets|1,076,908,948.87|930,907,761.60|
|Total Non-current Assets|7,080,579,944.32|6,900,148,312.23|
|TOTAL ASSETS|7,666,324,428.75|7,549,041,526.12|
|Current Liabilities:|||
|Short-term borrowings|1,614,000,000.00|850,000,000.00|
|Notes payable|29,607,185.35|16,200,019.20|
|Accounts payable|17,180,844.94|11,500,505.03|
|Receipts in advance|5,495,716.81|9,185,065.04|
|Employee benefits payable|11,449,281.56|21,162,917.90|
|Taxes payable|27,002,270.62|30,107,734.45|
|Interest payable|9,482,866.74|23,856,299.00|
|Other payables|421,163,591.96|437,522,424.61|
|Non-current liabilities due within one year|240,057,978.40|633,057,978.40|
|Other current liabilities|50,000,000.00|564,000,000.00|
|Total Current Liabilities|2,425,439,736.38|2,596,592,943.63|
|Non-current Liabilities:|||
|Long-term borrowings|1,176,133,100.45|1,186,288,100.45|
|Bonds payable|569,012,000.00|568,641,500.00|
|Deferred income|49,186,061.47|49,599,079.39|
|Deferred tax liabilities|22,777,773.38|22,812,085.88|

||||
|-|-|-|
|Other non-current liabilities|804,459,268.06|511,018,207.18|
|Total Non-current Liabilities|2,621,568,203.36|2,338,358,972.90|
|TOTAL LIABILITIES|5,047,007,939.74|4,934,951,916.53|
|SHAREHOLDERS' EQUITY:|||
|Share capital|230,600,000.00|230,600,000.00|
|Capital reserve|234,141,186.09|234,141,186.09|
|Other comprehensive income|652,079.14|652,079.14|
|Special reserve|7,074,478.01|6,774,707.73|
|Surplus reserve|318,603,562.42|318,603,562.42|
|Unappropriated profits|966,147,054.19|966,064,644.53|
|Total shareholders' equity attributable toequity holders of the Company|1,757,218,359.85|1,756,836,179.91|
|Minority interests|862,098,129.16|857,253,429.68|
|TOTAL SHAREHOLDERS'EQUITY|2,619,316,489.01|2,614,089,609.59|
|TOTAL LIABILITIES ANDSHAREHOLDERS' EQUITY|7,666,324,428.75|7,549,041,526.12|

Legal Representative: Tian Junyan Chief FinancialOfficer：Yu Zhongxia FinancialManager：Sun Yuhui
2. Balance Sheet
||||
|-|-|-|
|Parent company||Currency: RMB|
|Items|Ending Balance|Beginning Balance|
|Current Assets:|||
|Cash and bank balances|22,756,612.49|14,320,382.62|
|Accounts receivable|21,698,897.90|22,179,847.58|
|Prepayments|104,902.18|199,347.18|
|Other receivables|185,789,349.86|458,310,323.30|
|Inventories|602,463.90|666,721.31|
|Total Current Assets|230,952,226.33|495,676,621.99|
|Non-current Assets:|||
|Long-term equity investments|3,244,378,292.42|3,235,207,239.36|
|Investment properties|111,999,471.95|115,535,029.89|
|Fixed assets|51,029,038.16|53,000,328.21|
|Construction in progress|2,939,773.18|2,626,533.00|
|Liquidation of fixed assets|21,960.28||
|Intangible assets|272,701,020.26|276,936,159.10|
|Other non-current assets|2,935,397.39|3,100,849.21|
|Total non-current assets|3,686,004,953.64|3,686,406,138.77|
|TOTAL ASSETS|3,916,957,179.97|4,182,082,760.76|
|Current Liabilities:|||
|Short-term borrowings|970,000,000.00|800,000,000.00|
|Note payable|584,945.57||
|Accounts payable|13,897,996.33|10,800,195.25|
|Employee benefits payable|5,947,652.37|8,499,705.90|
|Taxes payable|801,022.16|1,325,799.55|
|Interest payable|8,777,924.96|22,814,519.98|
|Other payables|99,970,461.49|85,907,775.53|
|Non-current liabilities due within one year|1,349,351.16|401,349,351.16|
|Other current liabilities||220,000,000.00|
|Total Current Liabilities|1,101,329,354.04|1,550,697,347.37|
|Non-current Liabilities:|||
|Long-term borrowings|378,824,302.04|378,824,302.04|
|Bonds payable|569,012,000.00|568,641,500.00|
|Other non-current liabilities|454,680,869.39|255,018,207.18|
|Total Non-current Liabilities|1,402,517,171.43|1,202,484,009.22|
|TOTAL LIABILITIES|2,503,846,525.47|2,753,181,356.59|
|SHAREHOLDERS' EQUITY:|||
|Share capital|230,600,000.00|230,600,000.00|
|Capital reserve|204,534,849.49|204,534,849.49|
|Special reserve|6,722,515.70|6,468,869.88|
|Surplus reserve|318,603,562.42|318,603,562.42|
|Unappropriated profits|652,649,726.89|668,694,122.38|
|TOTAL SHAREHOLDERS' EQUITY|1,413,110,654.50|1,428,901,404.17|
|TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY|3,916,957,179.97|4,182,082,760.76|

3. Income Statements
Consolidated Currency: RMB
||||
|-|-|-|
|Items|Current Period|Same Period Last Year|
|I. Total operating income|170,278,946.93|164,424,597.76|
|Including: Operating income|170,278,946.93|164,424,597.76|
|Less: Total operating costs|163,053,549.34|150,582,765.73|
|Including: Operating costs|77,699,657.83|71,965,168.10|
|Business taxes and levies|15,728,536.44|9,677,584.67|
|Selling expenses|197,841.36|521,984.66|
|General and administrative expenses|27,952,945.45|25,257,563.56|
|Financial expenses|41,481,288.15|43,145,654.48|
|Impairment losses of assets|-6,719.89|14,810.26|
|Add: Investment income|5,671,053.06|6,047,847.58|
|Including: Income from investments in associates and joint ventures|5,671,053.06|5,020,395.05|
|II. Operating profit|12,896,450.65|19,889,679.61|
|Add: Non-operating income|1,163,700.46|1,314,930.35|
|Including: Gains from disposal of non-current assets|31,643.90|27,777.65|
|Less: Non-operating expenses|23,960.21|75,825.04|
|Including: Losses from disposal of non-current assets|489.65|4,995.00|
|III. Gross profit|14,036,190.90|21,128,784.92|
|Less: Income tax expenses|9,122,393.45|6,749,297.02|
|IV. Net profit|4,913,797.45|14,379,487.90|
|Net profit attributable to owners of the Company|82,409.67|9,311,019.07|
|Profit or loss attributable to minority shareholders|4,831,387.78|5,068,468.83|
|V. Post-tax net value of other comprehensive income|||
|Post-tax net value of other comprehensive income attributable to ownersof the Company|||
|Including: Translation differences arising on translation offinancial statements denominated in foreign currencies|||
|Post-tax net value of other comprehensive income attributable tominority shareholders|||
|VI. Total comprehensive income:|4,913,797.45|14,379,487.90|
|Total comprehensive income attributable to owners of the Company|82,409.67|9,311,019.07|
|Total comprehensive income attributable to minority shareholders|4,831,387.78|5,068,468.83|
|VII. Earnings per share:|||
|(I) Basic earnings per share|0.0004|0.0400|
|(II) Diluted earnings per share|Not applicable|Not applicable|

4.Income Statements
Parent company Currency: RMB
||||
|-|-|-|
|Items|Current Period|Same Period Last Year|
|I. Operating income|31,088,730.85|33,189,253.37|
|Less: Operating costs|21,175,688.80|21,523,151.84|
|Business taxes and levies|621,961.26|1,369,402.67|
|General and administrative expenses|7,383,095.35|10,976,181.41|
|Financial expenses|23,771,450.33|16,921,308.04|
|Impairment loss of assets||-35,125.53|
|Add: Investment income|5,671,053.06|6,047,847.58|
|Including: Income from investments inassociates and joint ventures|5,671,053.06|5,020,395.05|
|II. Operating profit|-16,192,411.83|-11,517,817.48|
|Add: Non-operating income|150,445.57|7,225.00|
|Including: Gains from disposal of non-currentassets|31,643.90||
|Less: Non-operating expenses|2,429.23|51,000.00|
|Including: Losses from disposal of non-currentassets|327.50|1,000.00|
|III. Gross profit|-16,044,395.49|-11,561,592.48|
|Less: Income tax expenses||-3,636,298.78|
|IV. Net profit|-16,044,395.49|-7,925,293.70|
|V. Other comprehensive income|||
|VI. Total comprehensive income|-16,044,395.49|-7,925,293.70|
|VII. Earnings per share:|||
|(I) Basic earnings per share|Not applicable|Not applicable|
|(II) Diluted earnings per share|Not applicable|Not applicable|

5.Cash Flow Statements
Consolidated Currency: RMB
||||
|-|-|-|
|Items|Current Period|Same Period Last Year|
|I. Cash Flows from Operating Activities:|||
|Cash receipts from sales of goods and rendering of services|172,187,577.34|176,001,114.88|
|Refund of tax and levies|||
|Other cash receipts relating to operating activities|6,662,342.24|10,802,596.87|
|Sub-total of cash inflows from operating activities|178,849,919.58|186,803,711.75|
|Cash payments for goods purchased and services received|31,169,452.88|37,114,019.69|
|Cash payments to and on behalf of employees|34,442,680.24|35,317,136.51|
|Payments of various taxes|37,349,576.78|32,618,165.50|
|Other cash payments relating to operating activities|13,758,992.16|7,207,486.19|
|Sub-total of cash outflows from operating activities|116,720,702.06|112,256,807.89|
|Net Cash Flows from Operating Activities|62,129,217.52|74,546,903.86|
|II. Cash Flows from Investing Activities:|||
|Cash receipts from investment income||12,908,798.55|
|Net cash receipts from disposal of fixed assets, intangible assets and otherlong-term assets|55,560.00|42,812.00|
|Other cash receipts relating to investing activities||283,233,575.00|
|Sub-total of cash inflows from investing activities|55,560.00|296,185,185.55|
|Cash payments to acquire or construct fixed assets, intangible assets and otherlong-term assets|239,838,140.88|359,426,925.92|
|Cash payments to acquire investments|||
|Net cash paid for the acquisition of subsidiaries and other business units||171,489,525.52|
|Other cash payments relating to investing activities||61,056,699.50|
|Sub-total of cash outflows from investing activities|239,838,140.88|591,973,150.94|
|Net Cash Flows from Investing Activities|-239,782,580.88|-295,787,965.39|
|III. Cash Flows from Financing Activities:|||
|Cash receipts from capital contributions||498,080,000.00|
|Cash receipts from borrowings|864,000,000.00|101,670,000.00|
|Other cash receipts relating to financing activities|494,000,000.00|294,000,000.00|
|Sub-total of cash inflows from financing activities|1,358,000,000.00|893,750,000.00|
|Cash repayments of borrowings|505,191,170.64|103,155,000.00|

||||
|-|-|-|
|Cash payments for distribution of dividends or profits or settlement of interest expenses|48,477,329.55|33,495,554.54|
|Other cash payments relating to financing activities|720,272,007.42|1,314,455.93|
|Sub-total of cash outflows from financing activities|1,273,940,507.61|137,965,010.47|
|Net Cash Flows from Financing Activities|84,059,492.39|755,784,989.53|
|IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents|-1,810.75||
|V. Net Increase(Decrease)in Cash and Cash Equivalents|-93,595,681.72|534,543,928.00|
|Add: Opening balance of Cash and Cash Equivalents|524,609,097.58|321,121,926.73|
|VI. Closing Balance of Cash and Cash Equivalents|431,013,415.86|855,665,854.73|

6.Cash Flow Statements
Parent company Currency: RMB
||||
|-|-|-|
|Items|Current Period|Same Period Last Year|
|I. Cash Flows from Operating Activities:|||
|Cash receipts from sales of goods and rendering of services|32,713,735.71|38,087,039.54|
|Refund of tax and levies|||
|Other cash receipts relating to operating activities|471,856.43|2,767,227.94|
|Sub-total of cash inflows from operating activities|33,185,592.14|40,854,267.48|
|Cash payments for goods purchased and services received|7,550,636.22|16,605,825.49|
|Cash payments to and on behalf of employees|12,179,881.92|22,687,878.29|
|Payments of various taxes|2,505,956.82|3,543,510.01|
|Other cash payments relating to operating activities|2,847,223.33|140,046.76|
|Sub-total of cash outflows from operating activities|25,083,698.29|42,977,260.55|
|Net Cash Flows from Operating Activities|8,101,893.85|-2,122,993.07|
|II. Cash Flows from Investing Activities:|||
|Cash receipts from investment income||12,908,798.55|
|Net cash receipts from disposal of fixed assets, intangible assets and otherlong-term assets|55,000.00|1,012.00|
|Other cash receipts relating to investing activities|279,127,586.54|451,058,795.00|
|Sub-total of cash inflows from investing activities|279,182,586.54|463,968,605.55|
|Cash payments to acquire or construct fixed assets, intangible assets and otherlong-term assets|2,573,192.74|1,583,827.98|
|Cash paid to acquire investments|3,500,000.00|280,210,000.00|
|Other cash payments relating to investing activities|253,127.22|148,696,643.62|
|Sub-total of cash outflows from investing activities|6,326,319.96|430,490,471.60|
|Net Cash Flows from Investing Activities|272,856,266.58|33,478,133.95|
|III. Cash Flows from Financing Activities:|||
|Cash receipts from borrowings|270,000,000.00|100,000,000.00|
|Other cash receipts relating to financing activities|233,086,919.11|2,149,452.09|
|Sub-total of cash inflows from financing activities|503,086,919.11|102,149,452.09|
|Cash repayments of borrowings|500,000,000.00|100,000,000.00|
|Cash payments for distribution of dividends or profits or settlement of interestexpenses|38,734,071.32|29,643,289.34|
|Other cash payments relating to financing activities|236,874,778.35|1,604,094.84|
|Sub-total of cash outflows from financing activities|775,608,849.67|131,247,384.18|
|Net Cash Flows from Financing Activities|-272,521,930.56|-29,097,932.09|
|IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents|||
|V．Net Increase(Decrease) in Cash and Cash Equivalents|8,436,229.87|2,257,208.79|
|Add: Opening balance of Cash and Cash Equivalents|14,320,382.62|28,808,779.96|
|VI. Closing Balance of Cash and Cash Equivalents|22,756,612.49|31,065,988.75|

II. Audit Report
Audit Opinion
The first quarterly report is unaudited.
Board of Directors
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. April 29, 2017