WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
THE THIRD QUARTERLY REPORT 2016
October 2016
Section I. Important Notes
Board of Directors and the Supervisory Committee of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives 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 of the Company are attended the Meeting for quarterly report deliberation.
Chen Xuejun, Principal of the Company; Ou Jianbin, Person in Charge of Accounting Work; Ou Jianbin, Person in Charge of Accounting Organization (Accounting Officer) hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete.
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)|16,387,938,080.77||15,704,093,069.04||4.35%||
|Net assets attributable to shareholders|12,522,879,879.40||11,783,228,273.39||||
||||||6.28%||
|of listed company (RMB)|||||||
|||||||Increase/decrease in|
|||Increase/decrease in|||||
|||||Year-begin to end of||comparison with|
||Current period|comparison with same|||||
|||||the Period||year-begin to|
|||period of last year|||||
|||||||Period-end of last year|
|Operating revenue (RMB)|1,522,896,852.89|37.22%||4,889,373,305.38||8.65%|
|Net profit attributable to shareholders|366,126,109.76|||1,309,694,645.48|||
|||47.70%||||1.22%|
|of the listed company (RMB)|||||||
|Net profit attributable to shareholders|||||||
|of the listed company after deducting|307,178,949.97|42.11%||1,136,811,667.10||3.33%|
|non-recurring gains and losses(RMB)|||||||
|Net cash flow arising from operating||||249,062,317.15|||
||--|--||||-57.57%|
|activities(RMB)|||||||
|Basic earnings per share|0.36|||1.30|||
|||50.00%||||2.36%|
|(RMB/Share)|||||||
|Diluted earnings per share|0.36|||1.30|||
|||50.00%||||2.36%|
|(RMB/Share)|||||||
|Weighted average ROE|2.98%|0.85%||10.70%||-0.72%|

 In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||end of the Period||
|Gains/losses from the disposal of non-current asset (including the write-off that|||
||-1,172,091.49||
|accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not including the subsidy|||
|enjoyed in quota or ration according to national standards, which are closely relevant|23,932,171.74||
|to enterprise’s business)|||
|Gains/losses from entrusted investment or assets management|177,111,392.49||

||||
|-|-|-|
|Restoring of receivable impairment provision that tested individually|1,012,469.08||
|Other non-operating income and expenditure except for the aforementioned items|4,080,436.13||
|Relocation expenses|-57,116.41||
|Less: impact on income tax|30,833,432.04||
|Impact on minority shareholders’ equity (post-tax)|1,190,851.12||
|Total|172,882,978.38|--|

 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 common shareholders at the|||Total preferred stockholders with voting rights recover|||||||
||45,087|||||||0||
|end of report period|||at the end of report period (if applicable)|||||||
|Top ten shareholders||||||||||
||||||||Number of share|||
|||||Proportion||Amount of||||
||||||Amount of||pledged/frozen|||
|Shareholders||Nature of shareholder||of shares||restricted||||
||||||shares held||State of|||
|||||held||shares held|||Amount|
||||||||share|||
|WUXI INDUSTRY DEVELOPMENTGROUP CO., LTD.||State-owned corporate||20.22%|204,059,398|||||
|ROBERT BOSCH GMBH||Foreign corporate||14.16%|142,841,400|||||
|UBS AG||Foreign corporate||2.97%|29,933,303|||||
|China Securities Finance Corporation Limited||State-owned corporate||2.63%|26,555,515|||||
|Kangjian Assets Management Company–Client’s fund||Foreign corporate||1.56%|15,705,492|||||
|Central Huijin Investment Ltd.||State-owned corporate||1.27%|12,811,200|||||
|BBH BOS S/A FIDELITY FD - CHINAFOCUS FD||Foreign corporate||1.23%|12,382,279|||||
|MERRILL LYNCH INTERNATIONAL||Foreign corporate||1.14%|11,460,002|||||

||||||||
|-|-|-|-|-|-|-|
|Puxin Investment Company- Client’s fund|Foreign corporate||1.13%||11,375,877||
|RBC EMERGING MARKETS EQUITYFUND|Foreign corporate||0.95%||9,626,264||
|Particular about top ten shareholders with un-restrict shares held|||||||
|||Amount of||Type of shares|||
|Shareholders||un-restrict common|||||
|||||Type||Amount|
|||shares held|||||
|WUXI INDUSTRY DEVELOPMENT GROUP CO.,LTD.||204,059,398|||||
|||||RMB common shares||204,059,398|
|ROBERT BOSCH GMBH||142,841,400||RMB common shares||115,260,600|
|||||Domestically listed foreign shares||27,580,800|
|UBS AG||29,933,303||RMB common shares||29,933,303|
|China Securities Finance Corporation Limited||26,555,515||RMB common shares||26,555,515|
|Kangjian Assets Management Company –Client’s fund||15,705,492||RMB common shares||15,705,492|
|Central Huijin Investment Ltd.||12,811,200||RMB common shares||12,811,200|
|BBH BOS S/A FIDELITY FD - CHINA FOCUS FD||12,382,279||Domestically listed foreign shares||12,382,279|
|MERRILL LYNCH INTERNATIONAL||11,460,002||RMB common shares||11,460,002|
|Puxin Investment Company- Client’s fund||11,375,877||RMB common shares||11,375,877|
|RBC EMERGING MARKETS EQUITY FUND||9,626,264||Domestically listed foreign shares||9,626,264|
|||Among the top ten shareholders, there has no associated relationship|||||
|||between Wuxi Industry Development Group Co., Ltd. and other|||||
|Explanation on related relationship or concerted action||shareholders, the first largest shareholder of the Company; and they do|||||
|among the abovementioned shareholders||not belong to the consistent actionist regulated by the Management|||||
|||Measure of Information Disclosure on Change of Shareholding for|||||
|||Listed Company.|||||
|Explanation on shareholders involving margin business|||||||
|||Not applicable|||||
|among top ten common shareholders d (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
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Total 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
1. Monetary fund: decreased RMB 2029.8382 million over that of year-beginning with61.99% down, mainly because out flowing for entrusting increased over that of year-beginning;
2. Other account receivable: increased RMB 4.8904 million over that of year-beginning with55.46% up, mainly because come-and-go money receivable from units increased over that of year-beginning;
3. Other current assets: increased RMB 2509.0496 million over that of year-beginning with124.44% up, mainly because purchasing entrusting increased over that of year-beginning;
4. Construction in progress: decreased RMB 83.5703 million over that of year-beginning with51.46% down, mainly because fixed assets listed in construction in progress;
5. Short-term loans: decreased RMB 202.813 million over that of year-beginning with56.34% down, mainly because return the bank loans;
6. Deferred income tax liability: decreased RMB 11.7505 million over that of year-beginning with33.1% down, mainly because sales of financial assets available for sale and decrease of the change of fair value;
7. Other comprehensive income: decreased RMB 66.114 million over that of year-beginning with35.09% down, mainly because sales of financial assets available for sale and decrease of the change of fair value;
8. Non-operation revenue: decreased RMB 62.2001 million over that of last period with67.92% down, mainly because compensation for demolition from parent company declined over that of last period;
9. Non-operation expenditure: decreased RMB 67.8481 million over that of last period with93.67% down, mainly because demolition expenses of the parent company decreased over same period of last year;
10. Net cash flow arising from operation activities: decreased RMB 337.9066 million over that of last period, mainly because sales collecting declined;
11. Net cash flow arising from investment activities: decreased RMB 750.5607 million over that of last period, mainly because cash outflow of purchasing entrusting increased over last year;
II. Progress of significant events, their influences, and analysis and explanation of their solutions
√ Applicable□Not applicable
Wholly-owned subsidiary of the Company has investment intention on industry mergers& acquisitions fund
On 31 May 2016, the Company held the 7th meeting of the 8th board of directors, to consider and approve the resolution relating to the wholly-owned subsidiary of the Company proposing to establish industry merger& acquisition funds. In order to accelerate theCompany’s industrial upgrade and development speed, preserve merger& acquisition projects, improve its comprehensive strength and realize development strategy, the Company agreed withPing’an Securities in reaching for initial cooperation plan. Weifu Auto Diesel, a wholly-owned subsidiary of the Company, proposed to cooperate withPing’an Ronghui which was established byPing’an Caizhi (a wholly-owned subsidiary ofPing’an Securities) to establish business merger&
acquisition funds. The relevant announcements (No. 2016-013 and No. 2016-015) were published on China Securities, Securities Times, Hong Kong Commercial Daily and Juchao Information website（http://www.cninfo.com.cn）. Till now, this matter is being prepared.
||||
|-|-|-|
|Overview|Disclosure date|Query index for interim notice|
|Notice of Planning of Setting Up Industrial Merger & Acquisition Fund by Wholly-owned Subsidiary||Published on Juchao Website|
||2016-06-02||
|||(www.cninfo.com.cn)|

||
|-|
|III. Commitments completed during the Period and those un-completed as of the period-end|
|from the Company, shareholders, actual controller, buyer, director, supervisor, senior|
|executives or other related party|

□Applicable √Not applicable
||
|-|
|The Company has no commitments completed during the Period and those un-completed as of the period-end from the Company,|
|shareholders, actual controller, buyer, director, supervisor, senior executives or other related party|

IV. Estimation of operation performance for year of 2016
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. Particular about security investment
√ Applicable □Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Proporti||Proporti||Gains and loss|Accountin|Sourc|
|||||Amount of||||||||
|||||||Amount of||||||
||||||on of||on of|||||
|Variety of||Shortform of||stock-holding at the||stock-holding at the||||||
||Code of||Initialinvestment||stock-holding at||stock-holding|Book value atthe end of the||||
|securities|securities|securities|cost (RMB)|beginningof the|thebeginnin|end of theperiod|at theend of|period(RMB)|in the reporting(RMB)|g subject|e ofstock|
|||||period|g of the|(Share)|the|||||
|||||(Share)||||||||
||||||period||period|||||
|||||||||||Financial||
||||||||||||Subsc|
||||199,208,000.|23,680,00||||258,617,700.||assets||
|Stock|600841|SDEC|||2.73%|19,030,000|2.20%||-350,189.10||riptio|
||||00|0||||00||available||
||||||||||||n|
|||||||||||for sales||
|||||||||||Financial||
|||Miracle|||||||||Subsc|
||||69,331,500.0|||||80,493,900.0||assets||
|Stock|002009|Logistic||4,710,000|1.29%|4,710,000|1.29%||-17,238,600.00||riptio|
||||0|||||0||available||
|||s|||||||||n|
|||||||||||for sales||
||||268,539,500.|28,390,00||||339,111,600.0||||
|Total|||||--|23,740,000|--||-17,588,789.10|--|--|
||||00|0||||0||||
|Disclosure date of||||||||||||
||||2012-03-24|||||||||
|securities investment||||||||||||
|approval from the||||||||||||
||||2013-06-04|||||||||
|Board||||||||||||
|Disclosure date of||||||||||||
|securities investment||||||||||||
|approval from the||||||||||||
|Board||||||||||||

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
|||||
|-|-|-|-|
|Date|Method|Type of investors|Index for the interview and research|
|Form 1 July to 30|Written||The Company answered 42 questions for investors online through the|
|||Other||
|September 2016|inquiry||investor relations interactive platform(http://irm.p5w.net/dqhd/sichuan/)|
||Telephone|||
|Form 1 July to 30|||Basic condition of the Company and views on market in 2016,|
||communicat|Other||
|September 2016|||communication with investors by telephone more than 50|
||ion|||

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 Weifu High-Technology Group Co., Ltd.
In RMB
||||
|-|-|-|
|Items|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|1,244,841,488.41|3,274,679,732.54|
|Settlement provisions|||
|Capital lent|||
|Financial assets measured by fair value and whose change is recorded in|||
|current gains and losses|||
|Derivative financial liability|||
|Notes receivable|1,102,626,043.37|1,031,886,230.18|
|Accounts receivable|1,533,709,001.77|1,261,163,184.87|
|Accounts paid in advance|74,424,914.07|73,326,550.19|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance receivable|||
|Interest receivable|1,770,059.40|3,281,939.96|
|Dividend receivable||3,600,000.00|
|Other receivables|13,708,076.53|8,817,661.08|
|Purchase restituted finance asset|||
|Inventories|977,092,108.63|865,574,792.41|
|Divided into assets held ready for sales|||
|Non-current asset due within one year|||
|Other current assets|4,525,254,222.98|2,016,204,649.28|
|Total current assets|9,473,425,915.16|8,538,534,740.51|
|Non-current assets:|||
|Granted loans and advances|||
|Finance asset available for sales|593,499,361.00|694,398,661.00|
|Held-to-maturity investment|||

||||
|-|-|-|
|Long-term account receivable|||
|Long-term equity investment|3,130,251,655.41|3,283,584,245.43|
|Investment property|25,497,296.06|20,233,111.93|
|Fixed assets|2,448,887,994.22|2,320,627,323.42|
|Construction in progress|78,832,450.18|162,402,752.68|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|350,760,461.02|360,610,837.42|
|Expense on Research and Development|||
|Goodwill|1,784,086.79|1,784,086.79|
|Long-term expenses to be apportioned|17,323,469.94|14,004,911.64|
|Deferred income tax asset|159,973,270.55|158,873,725.37|
|Other non-current asset|107,702,120.44|149,038,672.85|
|Total non-current asset|6,914,512,165.61|7,165,558,328.53|
|Total assets|16,387,938,080.77|15,704,093,069.04|
|Current liabilities:|||
|Short-term loans|157,187,030.29|360,000,000.00|
|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|517,376,866.50|630,682,394.24|
|Accounts payable|1,655,969,703.18|1,463,607,938.95|
|Accounts received in advance|42,390,746.91|33,545,363.49|
|Selling financial asset of repurchase|||
|Commission charge and commission payable|||
|Wage payable|196,985,204.88|245,070,941.07|
|Taxes payable|51,481,791.14|52,389,865.33|
|Interest payable|3,170,746.88|778,673.59|
|Dividend payable|51,867,270.00||

||||
|-|-|-|
|Other accounts payable|53,319,397.30|49,333,826.26|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held ready for sale|||
|Non-current liabilities due within 1 year|60,000,000.00|60,000,000.00|
|Other current liabilities|||
|Total current liabilities|2,789,748,757.08|2,895,409,002.93|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Long-term account payable|17,835,454.00|18,174,545.00|
|Long-term wages payable|96,350,000.00|96,350,000.00|
|Special accounts payable|47,042,377.98|44,725,048.69|
|Projected liabilities|||
|Deferred income|428,101,584.62|400,657,991.06|
|Deferred income tax liabilities|23,748,869.89|35,499,320.90|
|Other non-current liabilities|||
|Total non-current liabilities|613,078,286.49|595,406,905.65|
|Total liabilities|3,402,827,043.57|3,490,815,908.58|
|Owner’s equity:|||
|Share capital|1,008,950,570.00|1,008,950,570.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Capital public reserve|3,397,360,051.31|3,396,935,227.97|
|Less: Inventory shares|||
|Other comprehensive income|122,322,373.76|188,436,372.50|
|Reasonable reserve|1,036,069.02|914,648.09|
|Surplus public reserve|510,100,496.00|510,100,496.00|
|Provision of general risk|||

||||
|-|-|-|
|Retained profit|7,483,110,319.31|6,677,890,958.83|
|Total owner’s equity attributable to parent company|12,522,879,879.40|11,783,228,273.39|
|Minority interests|462,231,157.80|430,048,887.07|
|Total owner’s equity|12,985,111,037.20|12,213,277,160.46|
|Total liabilities and owner’s equity|16,387,938,080.77|15,704,093,069.04|

 Legal representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institution: Ou Jianbin
2. Balance Sheet of parent company
Prepared by Weifu High-Technology Group Co., Ltd.
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|742,220,837.25|1,739,313,657.29|
|Financial assets measured by fair value and whose change is recorded in|||
|current gains and losses|||
|Derivative financial liability|||
|Notes receivable|298,479,498.09|159,630,301.53|
|Accounts receivable|510,336,015.83|537,504,587.17|
|Accounts paid in advance|41,466,912.47|50,246,196.23|
|Interest receivable||33,287.67|
|Dividend receivable|25,816,200.00|3,600,000.00|
|Other receivables|96,404,844.29|81,906,796.95|
|Inventories|147,761,049.97|151,832,151.38|
|Divided into assets held ready for sales|||
|Non-current asset due within one year|||
|Other current assets|4,406,360,283.51|2,038,225,831.05|
|Total current assets|6,268,845,641.41|4,762,292,809.27|
|Non-current assets:|||
|Finance asset available for sales|507,559,361.00|608,458,661.00|
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|4,323,978,110.68|4,241,205,473.10|
|Investment real estate|||

||||
|-|-|-|
|Fixed assets|1,437,542,894.58|1,417,143,347.25|
|Construction in progress|21,054,241.51|60,582,501.19|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|194,769,939.71|199,636,812.43|
|Expense on Research and Development|||
|Goodwill|||
|Long-term expenses to be apportioned|||
|Deferred income tax asset|89,958,777.49|86,269,470.27|
|Other non-current asset|57,359,942.42|80,413,247.85|
|Total non-current asset|6,632,223,267.39|6,693,709,513.09|
|Total assets|12,901,068,908.80|11,456,002,322.36|
|Current liabilities:|||
|Short-term loans|80,000,000.00|230,000,000.00|
|Financial liability measured by fair value and with variation reckoned|||
|into current gains/losses|||
|Derivative financial liability|||
|Notes payable|176,683,502.46|218,219,397.80|
|Accounts payable|511,668,966.88|473,825,553.93|
|Accounts received in advance|1,723,845.42|4,754,011.37|
|Wage payable|117,595,843.95|118,032,003.11|
|Taxes payable|17,227,948.30|16,992,552.61|
|Interest payable|292,886.11|292,886.11|
|Dividend payable|51,867,270.00||
|Other accounts payable|1,157,573,274.42|12,757,135.96|
|Divided into liability held ready for sale|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|2,114,633,537.54|1,074,873,540.89|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||

||||
|-|-|-|
|Including: preferred stock|||
|Perpetual capital securities|||
|Long-term account payable|||
|Long-term wages payable|96,350,000.00|96,350,000.00|
|Special accounts payable|28,777,295.87|26,459,966.58|
|Projected liabilities|||
|Deferred income|386,336,151.28|382,179,400.68|
|Deferred income tax liabilities|21,586,301.24|33,253,477.50|
|Other non-current liabilities|||
|Total non-current liabilities|533,049,748.39|538,242,844.76|
|Total liabilities|2,647,683,285.93|1,613,116,385.65|
|Owners’ equity:|||
|Share capita|1,008,950,570.00|1,008,950,570.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Capital public reserve|3,427,939,852.32|3,427,939,852.32|
|Less: Inventory shares|||
|Other comprehensive income|122,322,373.76|188,436,372.50|
|Reasonable reserve|||
|Surplus reserve|510,100,496.00|510,100,496.00|
|Retained profit|5,184,072,330.79|4,707,458,645.89|
|Total owner’s equity|10,253,385,622.87|9,842,885,936.71|
|Total liabilities and owner’s equity|12,901,068,908.80|11,456,002,322.36|

 3. Consolidated Profit Statement (this report period)
In RMB
||||
|-|-|-|
|Item|Amount in this period|Amount in last period|
|I. Total operating income|1,522,896,852.89|1,109,803,414.23|
|Including: Operating income|1,522,896,852.89|1,109,803,414.23|
|Interest income|||
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|1,441,957,624.68|1,051,202,587.20|

||||
|-|-|-|
|Including: Operating cost|1,204,377,668.92|853,120,105.09|
|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|7,552,608.70|4,855,979.63|
|Sales expenses|40,328,425.30|39,333,130.48|
|Administration expenses|175,813,718.30|162,936,281.89|
|Financial expenses|-893,521.51|-8,723,726.12|
|Losses of devaluation of asset|14,778,724.97|-319,183.77|
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|313,808,978.06|227,322,744.62|
|Including: Investment income on affiliated company and joint venture|245,845,647.59|179,333,856.94|
|Exchange income (Loss is listed with “-”)|||
|III. Operating profit (Loss is listed with “-”)|394,748,206.27|285,923,571.65|
|Add: Non-operating income|10,629,017.31|14,378,453.25|
|Including: Disposal income of non-current asset|290,303.78|263,352.24|
|Less: Non-operating expense|2,251,691.01|15,511,276.71|
|Including: Disposal loss of non-current asset|725,836.85|2,711,288.97|
|IV. Total Profit (Loss is listed with “-”)|403,125,532.57|284,790,748.19|
|Less: Income tax expense|23,363,351.40|25,522,809.24|
|V. Net profit (Net loss is listed with “-”)|379,762,181.17|259,267,938.95|
|Net profit attributable to owner’s of parent company|366,126,109.76|247,876,993.79|
|Minority shareholders’ gains and losses|13,636,071.41|11,390,945.16|
|VI. Net after-tax of other comprehensive income|-9,906,410.00|-182,417,820.00|
|Net after-tax of other comprehensive income attributable to owners of|||
||-9,906,410.00|-182,417,820.00|
|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|||
||-9,906,410.00|-182,417,820.00|
|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|||
||-9,906,410.00|-182,417,820.00|
|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|369,855,771.17|76,850,118.95|
|Total comprehensive income attributable to owners of parent Company|356,219,699.76|65,459,173.79|
|Total comprehensive income attributable to minority shareholders|13,636,071.41|11,390,945.16|
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.36|0.24|
|(ii) Diluted earnings per share|0.36|0.24|

 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party
Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
4. Profit Statement of parent company (this report period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|474,079,480.63|284,872,283.76|
|Less: Operating cost|413,715,796.32|210,160,629.57|
|Operating tax and extras|2,655,313.84|387,663.24|
|Sales expenses|8,603,583.95|16,244,059.11|
|Administration expenses|68,735,038.35|61,382,503.68|

||||
|-|-|-|
|Financial expenses|1,222,659.04|-8,250,642.85|
|Losses of devaluation of asset|-957,854.77||
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|319,576,980.34|213,222,784.99|
|Including: Investment income on affiliated company and joint|||
||226,291,093.71|144,079,607.31|
|venture|||
|II. Operating profit (Loss is listed with “-”)|299,681,924.24|218,170,856.00|
|Add: Non-operating income|9,206,021.83|12,403,276.49|
|Including: Disposal gains of non-current asset|252,592.63|209,516.19|
|Less: Non-operating expense|953,656.79|13,510,831.90|
|Including: Disposal loss of non-current asset|401,351.45|1,977,405.01|
|III. Total Profit (Loss is listed with “-”)|307,934,289.28|217,063,300.59|
|Less: Income tax expense|6,062,366.15|10,808,786.15|
|IV. Net profit (Net loss is listed with “-”)|301,871,923.13|206,254,514.44|
|V. Net after-tax of other comprehensive income|-9,906,410.00|-182,417,820.00|
|(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|||
||-9,906,410.00|-182,417,820.00|
|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|||
||-9,906,410.00|-182,417,820.00|
|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|291,965,513.13|23,836,694.44|

||
|-|
|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|4,889,373,305.38|4,500,241,337.87|
|Including: Operating income|4,889,373,305.38|4,500,241,337.87|
|Interest income|||
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|4,493,734,811.55|4,085,977,954.89|
|Including: Operating cost|3,837,659,652.17|3,496,759,138.77|
|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|23,787,955.26|21,019,505.28|
|Sales expenses|133,127,794.55|124,447,943.17|
|Administration expenses|490,410,253.22|456,710,359.70|
|Financial expenses|-3,803,012.94|-12,891,095.79|
|Losses of devaluation of asset|12,552,169.29|-67,896.24|
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|1,025,761,541.23|1,009,661,209.39|
|Including: Investment income on affiliated company and joint venture|838,948,109.61|785,414,755.81|
|Exchange income (Loss is listed with “-”)|||
|III. Operating profit (Loss is listed with “-”)|1,421,400,035.06|1,423,924,592.37|
|Add: Non-operating income|29,376,400.04|91,576,470.86|
|Including: Disposal gains of non-current asset|1,015,076.57|16,331,052.52|
|Less: Non-operating expense|4,587,513.03|72,435,620.42|

||||
|-|-|-|
|Including: Disposal loss of non-current asset|2,187,168.06|3,526,137.76|
|IV. Total Profit (Loss is listed with “-”)|1,446,188,922.07|1,443,065,442.81|
|Less: Income tax expense|91,677,778.58|113,708,027.28|
|V. Net profit (Net loss is listed with “-”)|1,354,511,143.49|1,329,357,415.53|
|Net profit attributable to owner’s of parent company|1,309,694,645.48|1,293,864,194.62|
|Minority shareholders’ gains and losses|44,816,498.01|35,493,220.91|
|VI. Net after-tax of other comprehensive income|-66,113,998.74|-58,625,902.50|
|Net after-tax of other comprehensive income attributable to owners of|||
||-66,113,998.74|-58,625,902.50|
|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|||
||-66,113,998.74|-58,625,902.50|
|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|||
||-66,113,998.74|-58,625,902.50|
|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|1,288,397,144.75|1,270,731,513.03|
|Total comprehensive income attributable to owners of parent Company|1,243,580,646.74|1,235,238,292.12|
|Total comprehensive income attributable to minority shareholders|44,816,498.01|35,493,220.91|
|VIII. Earnings per share:|||
|(i) Basic earnings per share|1.30|1.27|
|(ii) Diluted earnings per share|1.30|1.27|

Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party
6. Profit Statement of parent company (from year-begin to end of this period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|1,458,149,449.43|1,165,105,460.23|
|Less: Operating cost|1,222,059,868.86|903,568,835.14|
|Operating tax and extras|6,544,108.26|437,323.98|
|Sales expenses|28,842,600.88|52,934,808.49|
|Administration expenses|195,062,421.69|162,510,291.44|
|Financial expenses|-4,944,536.93|-12,930,194.37|
|Losses of devaluation of asset|-886,916.97|906,328.70|
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|974,372,189.56|977,653,048.86|
|Including: Investment income on affiliated company and joint|||
||763,408,174.38|716,252,305.28|
|venture|||
|II. Operating profit (Loss is listed with “-”)|985,844,093.20|1,035,331,115.71|
|Add: Non-operating income|23,827,626.61|87,307,327.14|
|Including: Disposal gains of non-current asset|714,408.73|16,100,752.68|
|Less: Non-operating expense|1,762,101.81|68,622,432.32|
|Including: Disposal loss of non-current asset|993,332.06|2,668,293.32|
|III. Total Profit (Loss is listed with “-”)|1,007,909,618.00|1,054,016,010.53|
|Less: Income tax expense|26,820,648.10|46,610,160.67|
|IV. Net profit (Net loss is listed with “-”)|981,088,969.90|1,007,405,849.86|
|V. Net after-tax of other comprehensive income|-66,113,998.74|-58,625,902.50|
|(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|||
||-66,113,998.74|-58,625,902.50|
|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|||
||-66,113,998.74|-58,625,902.50|
|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|914,974,971.16|948,779,947.36|
|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 services|4,075,857,122.17|5,117,013,072.14|
|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|27,180,302.24|36,244,351.92|
|Other cash received concerning operating activities|19,487,047.28|37,192,412.19|
|Subtotal of cash inflow arising from operating activities|4,122,524,471.69|5,190,449,836.25|
|Cash paid for purchasing commodities and receiving labor service|2,598,412,659.75|3,430,281,408.10|

||||
|-|-|-|
|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|712,855,117.51|608,929,782.17|
|Taxes paid|323,616,906.66|339,709,080.53|
|Other cash paid concerning operating activities|238,577,470.62|224,560,672.97|
|Subtotal of cash outflow arising from operating activities|3,873,462,154.54|4,603,480,943.77|
|Net cash flows arising from operating activities|249,062,317.15|586,968,892.48|
|II. Cash flows arising from investing activities:|||
|Cash received from recovering investment|5,910,661,906.70|3,779,218,450.02|
|Cash received from investment income|1,148,454,597.68|895,767,078.58|
|Net cash received from disposal of fixed, intangible and other long-term|||
||63,817,144.02|3,690,621.78|
|assets|||
|Net cash received from disposal of subsidiaries and other units|||
|Other cash received concerning investing activities|30,296,467.00|145,230,000.00|
|Subtotal of cash inflow from investing activities|7,153,230,115.40|4,823,906,150.38|
|Cash paid for purchasing fixed, intangible and other long-term assets|281,959,826.10|431,250,475.45|
|Cash paid for investment|8,453,810,985.03|5,175,115,981.02|
|Net increase of mortgaged loans|||
|Net cash received from subsidiaries and other units obtained|||
|Other cash paid concerning investing activities|57,116.41|49,576,830.79|
|Subtotal of cash outflow from investing activities|8,735,827,927.54|5,655,943,287.26|
|Net cash flows arising from investing activities|-1,582,597,812.14|-832,037,136.88|
|III. Cash flows arising from financing activities|||
|Cash received from absorbing investment|12,800,000.00|12,412,655.54|
|Including: Cash received from absorbing minority shareholders’|||
||12,800,000.00|12,412,655.54|
|investment by subsidiaries|||
|Cash received from loans|254,187,030.29|280,000,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning financing activities|||
|Subtotal of cash inflow from financing activities|266,987,030.29|292,412,655.54|
|Cash paid for settling debts|457,000,000.00|385,000,000.00|
|Cash paid for dividend and profit distributing or interest paying|481,006,730.85|443,032,981.69|

||||
|-|-|-|
|Including: Dividend and profit of minority shareholder paid by|||
||24,803,800.00|24,324,710.00|
|subsidiaries|||
|Other cash paid concerning financing activities|339,091.00|250,677,789.07|
|Subtotal of cash outflow from financing activities|938,345,821.85|1,078,710,770.76|
|Net cash flows arising from financing activities|-671,358,791.56|-786,298,115.22|
|IV. Influence on cash and cash equivalents due to fluctuation in exchange rate|||
|V. Net increase of cash and cash equivalents|-2,004,894,286.55|-1,031,366,359.62|
|Add: Balance of cash and cash equivalents at the period -begin|3,040,315,198.85|2,028,227,816.93|
|VI. Balance of cash and cash equivalents at the period -end|1,035,420,912.30|996,861,457.31|

 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 services|1,165,621,926.61|1,429,401,019.18|
|Write-back of tax received|||
|Other cash received concerning operating activities|1,145,466,206.68|595,594,206.64|
|Subtotal of cash inflow arising from operating activities|2,311,088,133.29|2,024,995,225.82|
|Cash paid for purchasing commodities and receiving labor service|609,336,635.01|989,657,741.07|
|Cash paid to/for staff and workers|290,989,747.70|292,916,453.22|
|Taxes paid|96,209,325.93|65,909,684.60|
|Other cash paid concerning operating activities|64,011,248.17|57,968,444.09|
|Subtotal of cash outflow arising from operating activities|1,060,546,956.81|1,406,452,322.98|
|Net cash flows arising from operating activities|1,250,541,176.48|618,542,902.84|
|II. Cash flows arising from investing activities:|||
|Cash received from recovering investment|5,639,000,000.00|3,910,218,450.02|
|Cash received from investment income|1,110,427,341.08|903,317,517.58|
|Net cash received from disposal of fixed, intangible and other long-term|||
||62,137,135.26|3,087,248.01|
|assets|||
|Net cash received from disposal of subsidiaries and other units|||
|Other cash received concerning investing activities|25,301,600.00|145,230,000.00|
|Subtotal of cash inflow from investing activities|6,836,866,076.34|4,961,853,215.61|
|Cash paid for purchasing fixed, intangible and other long-term assets|162,090,979.43|258,754,707.26|
|Cash paid for investment|8,314,900,000.00|5,163,383,160.30|

||||
|-|-|-|
|Net cash received from subsidiaries and other units|||
|Other cash paid concerning investing activities|57,116.41|49,576,830.79|
|Subtotal of cash outflow from investing activities|8,477,048,095.84|5,471,714,698.35|
|Net cash flows arising from investing activities|-1,640,182,019.50|-509,861,482.74|
|III. Cash flows arising from financing activities|||
|Cash received from absorbing investment|||
|Cash received from loans|180,000,000.00|230,000,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning financing activities|||
|Subtotal of cash inflow from financing activities|180,000,000.00|230,000,000.00|
|Cash paid for settling debts|330,000,000.00|260,000,000.00|
|Cash paid for dividend and profit distributing or interest paying|453,545,994.41|414,414,513.72|
|Other cash paid concerning financing activities||249,999,607.07|
|Subtotal of cash outflow from financing activities|783,545,994.41|924,414,120.79|
|Net cash flows arising from financing activities|-603,545,994.41|-694,414,120.79|
|IV. Influence on cash and cash equivalents due to fluctuation in exchange rate|||
|V. Net increase of cash and cash equivalents|-993,186,837.43|-585,732,700.69|
|Add: Balance of cash and cash equivalents at the period -begin|1,734,531,427.66|1,159,462,935.71|
|VI. Balance of cash and cash equivalents at the period -end|741,344,590.23|573,730,235.02|

 II. Audit report
Whether the third quarter report was audited or not
□Yes√No
The 3rd quarter report of the Company has not been audited
Board of Directors of
Weifu High-Technology Group Co., Ltd. Chairman:____________
Chen Xuejun
27 October 2016