Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Nanjing Putian Telecommunications Co., Ltd.
SEMI-ANNUAL REPORT 2016
August 2016
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
Other directors attending the Meeting for semi-annual report deliberation except for the followed:
|||||
|-|-|-|-|
|Name of director absent|Title for absent director|Reasons for absent|Attorney|
|Li Tong|Director|For work|Li Ying|
|Han Shu|Director|For work|Li Ying|
|Huang Haodong|Director|For work|Xu Qian|
|Ding Haiyan|Independent director|For work|Zheng Aimei|

The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either.
Li Linzhen, principal of the Company, Shi Lian, person in charge of accounting works and Qiu Huizhen, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of Semi-Annual Report 2016 is authentic, accurate and complete.
Concerning the forward-looking statements with future planning involved in the Semi-Annual Report, they do not constitute a substantial commitment for investors. Investors are advised to exercise caution of investment risks.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Content
Section I Important Notice, Contents and Paraphrase .................................................................. 2 Section II Company Profile ............................................................................................................... 5 Section III Accounting data and summary of finnaical indexes .................................................... 7 Section IV Report of the Board of Directors ................................................................................... 9 Section V Important Events ............................................................................................................ 21 Section VI Changes in shares and particular about shareholders ............................................... 38 Section VII Preferred Stock ............................................................................................................ 42 Section VIII Directors, Supervisors and Senior Executives ....................................................... 43 Section IX Financial Report ............................................................................................................ 44 Section X Documents Available for Reference ........................................................................... 118
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Paraphrases
||||
|-|-|-|
|Items|Refers to|Definition|
|CSRC|Refers to|China Securities Regulatory Commission|
|SZ Stock Exchange|Refers to|Shenzhen Stock Exchange|
|||China Potevio Company Limited (controlling shareholder of the|
|China Potevio|Refers to||
|||Company)|
|The Company, Company, Nanjing Putian|Refers to|Nanjing Putian Telecommunications Co., Ltd.|
|||Nanjing Southern Telecom Co., Ltd. (holding subsidiary of the|
|Southern Telecom, Southern Company|Refers to||
|||Company)|
|||Nanjing Putian Telege Intelligent Building Co., Ltd. (holding|
|Telege Building|Refers to||
|||subsidiary of the Company)|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section II Company profile
I. Company Profile
|||||
|-|-|-|-|
|Short form for share|*ST NJ TEL B|Code for share|200468|
|Listing stock exchange|Shenzhen Stock Exchange|||
|Chinese name of the Company|南京普天通信股份有限公司|||
|English name of the||||
||Nanjing Putian Telecommunications Co., Ltd.|||
|Company(if applicable)||||
|Legal representative|Li Linzhen|||

II. Contact person and ways
||||
|-|-|-|
||Secretary of the Board|Rep. of securities affairs|
|Name|Zhang Shenwei|Xiao Hong|
||No. 1 Putian Road, Qinhuai District|No. 1 Putian Road, Qinhuai District|
|Contact adds.|||
||Nanjing|Nanjing|
|Tel.|86-25-58962010|86-25-58962072|
|Fax.|86-25-52409954|86-25-52409954|
|E-mail|zsw@postel.com.cn|xiaohong@postel.com.cn|

III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not
□ Applicable√ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period, found more details in Annual Report 2015.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable√ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2015.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 3. Registration changes of the Company
Whether registration has changed in reporting period or not
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||Business license|||
||||number of|||
||Registration date|Registration place||Tax ID|Organization code|
||||enterprise legal|||
||||person|||
|||Jiangsu||||
|||Administration for||||
|Period-begin registration|2014-12-10||320000400000500|320121134878054|13487805-4|
|||Industry &||||
|||Commerce||||
|||Jiangsu||||
|||Administration for|913200001348780|913200001348780|913200001348780|
|Period-end registration|2016-06-22|||||
|||Industry &|54G|54G|54G|
|||Commerce||||
|Query date for the temporary||||||
|announcement released on||||||
|appointed website (if any)||||||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section III. Accounting data and summary of financial indexes I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
|||||
|-|-|-|-|
||||Increase/decrease in this|
||Current period|Same period of last year||
||||report y-o-y|
|Operating revenue (RMB)|834,739,223.47|920,291,331.61|-9.30%|
|Net profit attributable to shareholders of|-21,109,095.63|-16,613,763.93||
||||-27.06%|
|the listed company(RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting|-22,354,358.57|-18,587,900.12|-20.26%|
|non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating|-96,581,410.89|-135,877,454.58||
||||28.92%|
|activities(RMB)||||
|Basic earnings per share (RMB/Share)|-0.10|-0.08|-25.00%|
|Diluted earnings per share (RMB/Share)|-0.10|-0.08|-25.00%|
|Weighted average ROE|-6.28%|-4.67%|-1.61%|
||||Increase/decrease in this|
||End of current period|End of last period|report-end over that of last|
||||period-end|
|Total assets (RMB)|2,071,314,325.03|2,093,670,119.65|-1.07%|
|Net assets attributable to shareholder of|325,357,663.18|346,684,394.29||
||||-6.15%|
|listed company(RMB)||||

II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
There is no difference of the net profit and net assets disclosed in financial report, under both IAS and Chinese GAAP
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 There is no difference of the net profit and net assts disclosed in financial report, under both foreign accounting rules and Chinese GAAP
III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the|13,717.36||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|1,211,187.47||
|including the subsidy enjoyed in quota or ration according to|||
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Other non-operating income and expenditure except for the|237,871.59||
|aforementioned items|||
|Less: impact on income tax|58,489.55||
|Impact on minority shareholders’ equity (post-tax)|159,023.93||
|Total|1,245,262.94|--|

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.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section IV. Report of the Board of Directors
I. Introduction
In the first half year of 2016, facing the complex economic situation and the increasingly fierce market competition, the company has been adhering to the business principles of "innovation, integration, and capital", focusing on the annual budget targets, earnestly implementing the objectives and requirements of "steady growth, adjusting structure, promoting transformation" of SASAC, taking advancing the quality and efficiency as the goal, accelerating thecompany’s industrial restructuring, promoting the lean management, making efforts to enhance the development of quality and efficiency, and ensuring thecompany’s sustainable and steady development. Under the influence of macroeconomic environment and external market, the company has achieved operating income of 835 million Yuan in the first half year, completed46.37% of the annual budget, a decrease of9.30% compared with the same period of last year, and achieved the net profits of -21,109,100 Yuan attributable to the equity holders of parent company.
Measures for the completion of annual budget goal in the first half year and the work development of all aspects:
1. Industrial development
The company adheres to the guiding principles of "innovation, integration, and capital", sticks closely to the national five development philosophies of "innovation, coordination, green, open, sharing", seizes new market opportunities, and achieves new industrial development. Take transition, innovation, and quality and efficiency improvement as the orientation, strive to improve industrial management capacity and efficiency of investment and development industry, and enhance the overall competitiveness of enterprises.
(I) Keep a foothold in industrial advantages, consolidate the foundation for development
Take the deep integration of informatization and industrialization as an engine to make an enterprise stronger, take intelligent manufacturing as the main direction, and actively expand the wiring industry development. Keep up with the needs of operators, and pay attention to the market dynamics. Wiring industry has obtained two software copyrights and participated in the drafting of eight industry standards. Actively carry out the research and development of new products while optimizing the existing products. Take "Internet+" as the drive, cooperate with multimedia application industry for development, rapidly develop multimedia integration services; actively explore the telemedicine channels, strive to create "Internet+ Medical treatment" mode, and form the professional solutions such as Internet intelligent grading diagnosis and treat, long-distance stroke, etc.; establish the Southern Telecom “Cloud Service” technology architecture and service system, meanwhile actively develop customers in finance, education, and government and other large customers in traditional video industry, and continue to maintain a leading position in the industry. Steadily push forward the development of cabling system, PDU products of Telege has won the China Compulsory Certification issued by China Quality Certification Center and successfully applied to customers. Become the only CATV module manufacturer in China that has passed all broadcasting tests. The science and technology company actively participates in the construction of pension service platform to achieve the goal of first stage.
The company grasps the new opportunities in intelligent development of manufacturing industry, and promotes the transformation and upgrading; accelerates inter-industry cooperation, realizes complementary advantages, and promotes the development of multiple types of businesses; continues to adhere to the development strategy of "penetrating rail transit", seizes the opportunities of subway industry development, successfully obtains subway project of Yanfang line, and maintains a dominant position in rail transit. Meanwhile, the company keeps up with the hot field such as cloud computing, big data, Internet of Things, etc., and constantly expands the business boundaries.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 (II) Seize market opportunities and expand emerging markets
During the reporting period, the company has aimed at new markets such as broadcasting, iron tower, etc., readjusted the personnel assignment and resource allocation, and explored the market pattern and expanded new markets step by step in a planned way; actively expanded the private network and industry markets, researched and explored the markets in broadcasting, power, military network, and rail transit, etc., and steadily promoted the growth points to transform to mature industries by the management concept of differentiation, specialization and flexibility.
(III) Closely follow the national strategy, and drive the development by innovation
Focus on the national five development philosophies of "innovation, coordination, green, open, sharing", drive the enterprise development by innovation, and promote the industrial upgrading. Actively introduce new technology products of incubation, and promote the research and development, and cooperate with colleges and universities in Nanjing so as to lay the foundation for the company to promote the construction of intelligent enterprise.
2. Operating management
In the first half year, the company has been focusing on the annual management tasks, highlighting the main industries, optimizing the layout structure, strengthening the intensive management and management improvement, solidly carrying out the operation and management work and steadily advancing all special projects, and has achieved good results. Firstly, deepen the reform and promote the restructuring, adjust and optimize the structure for rapid development, further deepen the structural adjustment and reform, focus on main businesses, improve the quality and efficiency by becoming bigger and stronger, and suspending or stopping operation, and strive to promote thecompany’s overall operating efficiency and competitiveness. Secondly, standardize the financial management, strengthen the pressure drop of "two funds", increase the assets vitalization, and actively collect the stock receivable. Thirdly, focus on business operation, constantly improve the internal control system, strengthen the contract management, intensify the cost control, endeavor to enhance the management level, and reduce the cost and increase benefits. Fourthly, strengthen the work of Party building, deepen the construction of the Party conduct and of an honest and clean enterprise, and create a positive and sound development environment.
In the next half year, the company will focus on the annual budget targets and tasks, adhere to the quality-oriented and efficiency-oriented principle, further increase efforts to adjust the industrial structure, continue to carry out the special work, such as "two funds pressure control", "advancing quality and efficiency", "governing losses", etc., strengthen the risk control and basic management, further improve the operational risk management and control work, make great efforts for party building and team construction, spare no effort to make sure the overall completion of annual goals and tasks, and promote thecompany’s sustainable and healthy development.
II. Main business analysis
Year-on-year changes of main financial data
In RMB
||||||
|-|-|-|-|-|
||Current period|Same period of last year|Y-o-y increase/decrease|Reasons for changes|
||834,739,223.47|920,291,331.61||Affected by slow of the|
|||||macro-economic,|
|||||intensified industrial|
|Operation revenue|||-9.30%||
|||||competition and decline|
|||||of the sales price, the|
|||||operation revenue|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||
|-|-|-|-|-|
|||||decreased on a y-o-y|
|||||basis|
||686,173,649.02|759,205,839.90||Operation costs declined|
|Operation cost|||-9.62%|with the decrease of|
|||||revenue|
|Sales expenses|80,474,718.48|85,374,312.00|-5.74%||
|Administrative expenses|69,513,112.10|68,807,167.70|1.03%||
|Financial cost|11,247,942.96|11,250,520.74|-0.02%||
||3,235,803.32|8,415,501.07||Profit from some of the|
|||||subsidiaries are declined|
|Income tax expense|||-61.55%|from a year earlier, the|
|||||income tax expenses|
|||||declined correspondingly|
|R&D investment|33,918,277.09|36,886,662.06|-8.05%||
||-96,581,410.89|-135,877,454.58||The recoup funds for|
|||||payment of goods are|
|||||increased from a year|
|Net cash flow arising|||||
||||28.92%|earlier; expenditure from|
|from operation activities|||||
|||||purchasing and cash for|
|||||tax-paying are declined|
|||||on a y-o-y basis|
||-1,272,325.51|-2,647,780.06||The cash paid for fixed|
|Net cash flow arising|||||
|||||assets investment in the|
|from investment|||51.95%||
|||||Period are less over that|
|activities|||||
|||||of last period|
||-61,384,722.62|54,725,674.00||Bank loans are decreased|
|||||from a year earlier, the|
|Net cash flow arising|||||
||||-212.17%|loans paid to bank are|
|from financing activities|||||
|||||increased on a y-o-y|
|||||basis|
||-159,511,552.16|-83,789,559.09||The net cash flow arising|
|Net increase of cash and||||from financing activities|
||||-90.37%||
|cash equivalent||||are declined dramatically|
|||||on a y-o-y basis|
|||||The joint-stock company|
|Investment income|917,844.11|1,648,163.04|-44.31%|has a less profit from a|
|||||year earlier|
|||||Under the influence of|
|||||macroeconomic|
|Operation profit|-17,759,814.90|-8,232,830.34|-115.72%||
|||||slowdown, continuous|
|||||aggravation of industrial|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||
|-|-|-|-|-|
|||||competition, selling price|
|||||fall and other factors,|
|||||during the reporting|
|||||period, the company’s|
|||||operating income has|
|||||decreased compared with|
|||||the same period of last|
|||||year. Though the|
|||||company has been|
|||||making efforts to control|
|||||and reduce all costs and|
|||||expenses, which cannot|
|||||make up the loss of profit|
|||||brought by the decrease|
|||||of operating income,|
|||||resulting in the|
|||||operational losses during|
|||||the reporting period.|
|||||Under the influence of|
|||||macroeconomic|
|||||slowdown, continuous|
|||||aggravation of industrial|
|||||competition, selling price|
|||||fall and other factors,|
|||||during the reporting|
|||||period, the company’s|
|||||operating income has|
|||||decreased compared with|
|Net profit attributable to|||||
|||||the same period of last|
|owners’ of parent|-21,109,095.63|-16,613,763.93|-27.06%||
|||||year. Though the|
|company|||||
|||||company has been|
|||||making efforts to control|
|||||and reduce all costs and|
|||||expenses, which cannot|
|||||make up the loss of profit|
|||||brought by the decrease|
|||||of operating income,|
|||||resulting in the|
|||||operational losses during|
|||||the reporting period.|

 Major changes on profit composition or profit resources in reporting period
□ Applicable√ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 placing memorandum and recapitalize statement
□ Applicable√ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize statement
Review on the previous business plan and its progress during reporting period
The main operation goal disclosed in Annual Report 2015 for year of 2016 are as: to ensure main targets as the main operation revenue progress year by year, futher to optimized the industrial structure and improved the operation quality, and further enhanced the assets efficiency (the above mentioned operation goal do not represent the profit forecast for year of 2016 under the name of listed company, the acehivement result depends on many factors as market condition changes with big uncertainty concerned, investors are advise to pay more attention)
During the Period, around by the opeartion plan formualted at beginning of the Year, the Company actively promote every works, and achieved a progress, till end of June 2016, the Company realized operation revenue of RMB 835 million, completed46.37% of the plan for the year, progress of the works found more in “I. Introduction” of the Section
III. Constitution of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase or|Increase or|Increase or|
|||||decrease of|decrease of|decrease of gross|
||Operating||||||
|||Operating cost|Gross profit ratio|operating revenue|operating cost|profit ratio over|
||revenue||||||
|||||over same period|over same period|same period of|
|||||of last year|of last year|last year|
|According to industries|||||||
|Communication|||||||
||739,988,519.89|612,397,969.82|17.24%|-10.24%|-10.89%|0.60%|
|industry|||||||
|Electric apparatus|||||||
||59,302,043.41|42,043,639.84|29.10%|9.44%|10.70%|-0.80%|
|industry|||||||
|According to products|||||||
|Video conference|||||||
||246,666,682.89|206,712,577.40|16.20%|-17.60%|-15.45%|-2.13%|
|products|||||||
|Integrated wiring|||||||
||142,200,652.00|111,331,266.82|21.71%|0.16%|-1.01%|0.93%|
|products|||||||
|Electrical|||||||
||59,302,043.41|42,043,639.84|29.10%|9.44%|10.70%|-0.80%|
|products|||||||
|Wiring products|||||||
||413,719,913.49|360,800,602.42|12.79%|-9.06%|-10.28%|1.18%|
|and other|||||||
|Interior offset|-62,598,728.49|-66,446,476.82|||||
|According to region|||||||
|Domestic|797,527,190.97|653,171,868.77|18.10%|-9.15%|-9.86%|0.64%|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||||
|-|-|-|-|-|-|-|
|Overseas|1,763,372.33|1,269,740.89|27.99%|145.91%|113.64%|10.87%|

 IV. Core competitive-ness analysis
As a subsidiary of Potevio a large-scale enterprise directly under the Central Government, the Company has developed into a manufacturing enterprise of communication equipments with diversified product structures after years of effort. The primary business of the Company falls within the fields to be developed and supported with national focus and having greater market demand and promising development prospect. With a complete structure of industry chains and good capacity inR&D, production and marketing, the Company has established good brand power and influence in the industry market and operators market. With a complete nationwide sales network, the wiring business has established a long-term cooperation with operators with multiple types of products and has won awards several times. The integrated wiring products with secured and good pipeline resources focus on independent innovation which has acquired sample projects invested by the government in recent years resulting in the continuously increased brand awareness. Visual intercom product takes a front-end position in the industry for many years and has a large number of high-quality client resources. The low-voltage apparatus has a higher market occupant rate in the rail transportation market with a higher degree of professionalism and competitive force. The remote health care of Southern Company, the smart community and smart education of Information Company adhere to the national strategy of smart city with a vast market space in future.
With the goal of maintaining the leading position in the industry, the Company will strengthen the industrial development with centralized resources and accelerate the integration of resources while shifting from manufacturer of single product to supplier of integrated solutions to further ensure its industrial competitiveness and upgrade its sustainable development ability.
V. Investment analysis
1. Equity investment
(1) Investment outside
□ Applicable√ Not applicable
The Company has no investment outside in the Period
(2) Holding the equity of financial enterprise
□ Applicable√ Not applicable
No equity of financial enterprise held by the Company in Period
(3) Securities investment
□ Applicable√ Not applicable
The Company has no securities investment in the Period
(4) Explanation on equity of other listed company held
□ Applicable√ Not applicable
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 The Company had no equity of other listed company held in Period.
2. Trust financing, investment of derivatives and entrustment loan
(1) Trust financing
□ Applicable√ Not applicable
The Company has no trust financing in Period.
(2) Derivative investment
□ Applicable√ Not applicable
The Company has no derivative investment in Period.
(3) Trust loans
□ Applicable√ Not applicable
The Company has no trust loans in the Period
3. Application of raised proceeds
□ Applicable√ Not applicable
The Company had no application of raised proceed in Period.
4. Main subsidiaries and joint-stock companies analysis
√Applicable□Not applicable
Main subsidiaries and joint-stock companies
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Main|||||||
|||Industry||Registered|||Operation|Operation||
|Name|Type||products or||Total assets|Net assets|||Net profit|
|||involved||capital|||revenue|profit||
||||service|||||||
||||Developme|||||||
||||nt,|||||||
||||production,|||||||
|Nanjing|||sales and|||||||
|||Communica||||||||
|Southern|||service of|34,205,147.|407,272,88|155,558,58|246,824,34|6,372,545||
||Subsidiary|tion|||||||8,174,011.25|
|Telecom|||data|83|4.37|7.11|0.55|.52||
|||industry||||||||
|Co., Ltd.|||communica|||||||
||||tion|||||||
||||products|||||||
||||and video|||||||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||communica|||||||
||||tion|||||||
||||products|||||||
|Nanjing|||Manufactur|||||||
|Putian|||e and sales|||||||
|||Communica||||||||
|Telege|||of|12,000,000.|262,291,91|101,672,76|144,073,85|9,018,429||
||Subsidiary|tion|||||||7,478,429.00|
|Intelligent|||intelligent|00|1.27|3.04|6.61|.05||
|||industry||||||||
|Building|||building|||||||
|Co., Ltd.|||system|||||||
||||Manufactur|||||||
||||e and sales|||||||
||||of software|||||||
|Nanjing||||||||||
||||of|||||||
|Putian||Communica||||||||
||||telecommu|10,000,000.|52,508,789.|23,993,712.|26,769,093.|-2,646,07||
|Network|Subsidiary|tion|||||||-2,148,902.16|
||||nications,|00|15|02|54|6.12||
|Company||industry||||||||
||||network|||||||
|Ltd.||||||||||
||||and|||||||
||||electronic|||||||
||||equipment|||||||
||||Out-door|||||||
||||patch,|||||||
||||sub-line|||||||
||||equipment,|||||||
||||network|||||||
|Nanjing|||box(cube)of|||||||
|Putian|||out-door|||||||
|Changle||Communica|and|||||||
|||||10,000,000.|92,778,228.|30,934,789.|30,703,788.|-95,063.2||
|Telecommu|Subsidiary|tion|machinery||||||-94,363.26|
|||||00|74|15|91|6||
|nications||industry|office,|||||||
|Equipment|||manufactur|||||||
|Co., Ltd.|||e and sales|||||||
||||of|||||||
||||communica|||||||
||||tion|||||||
||||electrical|||||||
||||products|||||||
||||Manufactur|||||||
|Nanjing||||||||||
||||e of|||||||
|Bada||||||||||
|||Communica|card-termin|||||||
|Telecommu||||11,301,400.|5,539,164.8|-15,536,601|3,093,051.1|-3,674,94||
||Subsidiary|tion|al||||||-3,595,361.35|
|nications||||00|2|.46|1|8.71||
|||industry|communica|||||||
|Equipment||||||||||
||||tion|||||||
|Co., Ltd.||||||||||
||||equipment|||||||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Export and|||||||
||||import of|||||||
||||telecommu|||||||
|Putian||||||||||
||||nication|||||||
|Telecommu||Communica||||||||
||||equipment,|HK$ 2|4,320,753.1|-17,742,684||-175,878.||
|nications|Subsidiary|tion|||||||-175,878.19|
||||Hi-tech R|million|1|.88||19||
|(H.K.) Co.,||industry||||||||
||||& D and|||||||
|Ltd.||||||||||
||||transfer,|||||||
||||technology|||||||
||||trade|||||||
|Nanjing||||||||||
||||Production,|||||||
|Postel||||||||||
|||Communica|sales and|||||||
|Wongzhi||||90,190,000.|38,895,411.|38,214,508.|3,864,171.7|-1,719,72||
||Subsidiary|tion|processing||||||-1,719,724.87|
|Telecommu||||00|44|80|6|4.87||
|||industry|of electrical|||||||
|nications||||||||||
||||products|||||||
|Co., Ltd.||||||||||
||||Manufactur|||||||
|Nanjing||||||||||
||||e and sales|||||||
|Putian||||||||||
|||Communica|of electrical|||||||
|Information||||14,000,000.|13,824,938.|5,873,063.3|10,109,283.|539,476.8||
||Subsidiary|tion|and||||||332,564.10|
|Technology||||00|84|1|39|1||
|||industry|telecommu|||||||
|Company||||||||||
||||nication|||||||
|Ltd.||||||||||
||||products|||||||
||||Electronic|||||||
||||components|||||||
|Nanjing|||assembly,|||||||
|Putian|||electronic|||||||
|Telecommu||Communica|products,|||||||
|||||5,000,000.0|17,849,571.||5,310,124.9|-851,841.||
|nication|Subsidiary|tion|telecommu|||792,184.82|||-814,927.43|
|||||0|71||0|69||
|Technology||industry|nication|||||||
|Company|||equipment,|||||||
|Ltd.|||Hi-tech R|||||||
||||& D and|||||||
||||sales|||||||
||||Manufactur|||||||
|Nanjing|||e and sales|||||||
|||Electrical||||||||
|Mennekes|||of plug &|USD 5.2|170,409,13|93,389,902.|59,853,154.|4,910,938||
||Subsidiary|apparatus|||||||2,686,829.19|
|Electrics|||socket of|million|2.19|05|52|.46||
|||industry||||||||
|Co., Ltd.|||industrial-u|||||||
||||sed|||||||
|Nanjing|||Developme|||||||
|||Communica||||||||
|Putian|||nt,|10,000,000.|38,135,958.|26,659,082.|21,359,235.|1,106,317||
||Subsidiary|tion|||||||2,107,868.66|
|Datang|||production,|00|20|21|76|.89||
|||industry||||||||
|Information|||sale,|||||||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Electronic|||engineering|||||||
|Co., Ltd.|||technical|||||||
||||service of|||||||
||||electronic|||||||
||||product;|||||||
||||processing|||||||
||||service of|||||||
||||surface|||||||
||||mounting|||||||
||||and welding|||||||
||||Developme|||||||
||||nt and|||||||
||||manufactur|||||||
|SEI-Nanjin||||||||||
||||e of ODN|||||||
|g Putian||Communica||||||||
||Joint-stock||products,|37,088,800.|48,197,145.|27,301,415.|14,260,549.|176,884.0||
|Optical||tion|||||||215,175.59|
||company||optical|00|97|60|51|5||
|Network||industry||||||||
||||communica|||||||
|Co., Ltd.||||||||||
||||tion|||||||
||||components|||||||
||||and RFTS|||||||
||||R&D of|||||||
||||communica|||||||
||||tion|||||||
||||technology|||||||
||||products,|||||||
||||sales,|||||||
|Potevio|||network|||||||
|||Communica||||||||
|Hi-tech|Joint-stock||system|337,548,14|350,612,83|342,456,89|10,061,612.|1,326,179||
|||tion|||||||1,315,998.67|
|Industry|company||integration,|1.29|5.19|9.88|00|.42||
|||industry||||||||
|Co., Ltd.|||rental of|||||||
||||industrial|||||||
||||park venue|||||||
||||and|||||||
||||property|||||||
||||managemen|||||||
||||t etc.|||||||

5. Major project invested by non-raised funds
√ Applicable□ Not applicable
In ten thousand Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Total|Amount|Amountinvested|||Date for|Index for|
|Project||||Progress|Earnings|||
||investment|invested in this||||disclosed (if|disclosed (if|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||||
|-|-|-|-|-|-|-|-|
||planned|period|accumulative|||applicable)|applicable)|
||||till end of|||||
||||reporting|||||
||||period|||||
||||||||Notice: “Notice|
||||||||of Investment|
||||||||for the Phase I|
||||||||of Putian|
|Phase I of||||||||
||||||||Technology|
|Putian||||||||
||||||||Innovation|
|Technology|5,683.5|24.89|3,240.46|57.02%|Unfinished|2013-10-18||
||||||||Park”; Notice|
|Innovation||||||||
||||||||No.: 2013-025;|
|Park||||||||
||||||||Website:|
||||||||Juchao website|
||||||||(www.cninfo.c|
||||||||om.cn)|
|Total|5,683.5|24.89|3,240.46|--|--|--|--|

 VI. Prediction of business performance from January– September 2016
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
VII. Explanation from the Board and Supervisory Committee for―QualifiedOpinion‖ from the CPA of thisyear’s
□ Applicable√ Not applicable
VIII. Explanation from the Board for―QualifiedOpinion‖ of lastyear’s
□ Applicable√ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital reserve in particular
□ Applicable√ Not applicable
Profit distribution plan for first half year was: no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either
X. Profit distribution plan and transfer of public reserve to common shares in the period
□ Applicable√ Not applicable
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for the semi-annual of the year.
XI. In the report period, reception of research, communication and interview
□ Applicable√ Not applicable
The Company has no reception of research, communication and interview activity occurred in the Period
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section V. Important Events
I. Corporate governance
Actual corporate governance of the Company shows no difference with the Company Law and relevant regulations of CSRC II. Lawsuits
Significant lawsuits and arbitrations
□Applicable√Not applicable
The Company has no significant lawsuits and arbitrations in reporting period.
Other lawsuits
√Applicable□Not applicable
|||||||||
|-|-|-|-|-|-|-|-|
||Amount|||||||
|||Resulted an||||||
|Lawsuits|involved (in|||Trial result and|Execution of|Disclosure|Disclosure|
|||accrual liability|Progress|||||
|(arbitrations)|10 thousand|||influence|judgment|date|index|
|||(Y/N)||||||
||Yuan)|||||||
|Contract dispute||||||||
|on Nanjing Putian||||||||
|Telege Intelligent|||||Closed with|||
||||Reconciliati|Reaching the aim||||
|Building Co., Ltd.|76.85|N|||payment by|||
||||on closed|of lawsuit||||
|suit against|||||the defendant|||
|Suzhou Puhao||||||||
|Trading Co., LTd.||||||||
|Contract dispute||||||||
|on Nanjing Putian||||||||
|Telege Intelligent||||||||
|Building Co., Ltd.|||Suit|||||
||10.68|N||-|-|||
|suit against Dalian|||pending|||||
|Dongxifang||||||||
|Technology Co.,||||||||
|Ltd.||||||||
|Contract dispute||||||||
|on Nanjing Putian||||||||
|Telege Intelligent||||||||
|Building Co., Ltd.|||Suit|||||
||29.64|N||-|-|||
|suit against Anhui|||pending|||||
|Jiaozi Electronic||||||||
|Technology Co.,||||||||
|Ltd.||||||||
|Contract dispute|3.35|N|Reconciliati|Reaching the aim|Closed with|||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||
|-|-|-|-|-|-|
|on Nanjing|||on closed|of lawsuit|payment by the|
|Southern Telecom|||||defendant|
|Co., Ltd. suit||||||
|against Zhengzhou||||||
|Jianye Hi-Te||||||
|Property Co., Ltd.||||||
|Contract dispute||||||
|on Nanjing||||||
|Southern Telecom||||||
||||||Closed with|
|Co., Ltd. suit|||Reconciliati|Reaching the aim||
||138.8|N|||payment by the|
|against Changsha|||on closed|of lawsuit||
||||||defendant|
|Prove||||||
|Technologies Co.,||||||
|Ltd.||||||
|Contract dispute||||||
|on Nanjing||||||
|Southern Telecom||||||
|Co., Ltd. suit|||||Closed with|
||||Reconciliati|Reaching the aim||
|against Shenzhen|33.83|N|||payment by the|
||||on closed|of lawsuit||
|ChinaLink|||||defendant|
|Telecom &||||||
|Technology Co.,||||||
|Ltd.||||||
|Contract dispute||||||
|on Nanjing||||||
|Southern Telecom||||||
||||||The defendant|
|Co., Ltd. suit|||Court|Reaching the aim||
||128.73|N|||payment by|
|against Shenzhen|||mediation|of lawsuit||
||||||installment|
|South Honest||||||
|Technology Co.,||||||
|Ltd.||||||
|Contract dispute||||||
|on Nanjing||||||
|Southern Telecom||||||
|Co., Ltd. suit||||||
||||Suit|||
|against Harbin|213.47|N||-|-|
||||pending|||
|Zhihua Bochen||||||
|Technology||||||
|Development Co.,||||||
|Ltd.||||||
|Contract dispute of|||||Closed with|
||||Court|Reaching the aim||
|MENNEKES|17.98|N|||payment by the|
||||mediation|of lawsuit||
|and Shenyang|||||defendant|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||
|-|
|Northern|
|Construction|
|Limited|

III. Question from media
□ Applicable√ Not applicable
No universal questioned by media in reporting period
IV. Bankruptcy reorganization
□ Applicable√ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.
V. Transaction in assets
1. Acquisition of assets
□ Applicable√ Not applicable
The Company has no assets purchased in the Period
2. Assets sold
□ Applicable√ Not applicable
The Company has no assets for sale in the Period
3. Enterprise mergers
□ Applicable√ Not applicable
In the reporting period, the Company has no enterprise merger.
VI. Implementation of theCompany’s equity incentive and its influence
□ Applicable√ Not applicable
The Company has no equity incentive plan and its implementation either in the Period
VII. Significant related transaction
1. Related transaction connected to routine operations
√ Applicable□ Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Related||Related|Related|Related||Related|Proporti|Trading|Whether|Related|Availabl||Index|
||Related||||Related|||||||Date of||
|transacti||transacti|transacti|transacti||transacti|on in the|limit|over the|transacti|e market||of|
||relations||||transacti|||||||disclosu||
|on||on|on|on||on|amount|approve|approve|on|prices of||disclos|
||hip||||on price|||||||re||
|parties||type|content|explanat||amount|of the|d (in 10|d|settleme|similar||ure|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||ion on||(in 10|same|thousan|limited|nt mode|transacti|||
|||||price||thousan|transacti|d Yuan)|or not||ons|||
|||||setting||d|on||(Y/N)|||||
|||||||Yuan))||||||||
||||||||||||||“Expe|
||||||||||||||cted|
||Stock-jo||||||||||||Relate|
||intly||||||||||||d|
||enterpris||||||||||||Transa|
||e of the||||||||||||ction|
||Compan||||||||||||with|
|SEI-Nan|y ,|Procure|||||||||||Routin|
||||Telecom|Market||||||||||
|jing|Senior|ment of|||||||||||e|
||||product|price||||||||||
|Putian|executiv|goods|||||||||||Operat|
|||||||||||Bank||2016-03||
|Optical|e of the|and|||902.40|902.4|1.45%|4,000|No||902.40||ion|
|||||||||||transfer||-29||
|Network|Compan|provide|||||||||||Conce|
|Co.,|y|labor|||||||||||rned|
|Ltd.|serves|services|||||||||||for|
||as||||||||||||year of|
||Director||||||||||||2016”|
||of the||||||||||||publis|
||compan||||||||||||hed on|
||y||||||||||||Juchao|
||||||||||||||Websit|
||||||||||||||e|
||||||||||||||“Expe|
||||||||||||||cted|
||||||||||||||Relate|
||||||||||||||d|
||||||||||||||Transa|
||||||||||||||ction|
|Nanjing||||||||||||||
|||Procure|||||||||||with|
|Putian|Controll|||||||||||||
|||ment of|||||||||||Routin|
|Honyar|ing|||||||||||||
|||goods|||||||||||e|
|Electric|sharehol||Telecom|Market||||||Bank||2016-03||
|||and|||14.11|14.11|0.02%|100|No||14.11||Operat|
|al|der’s||product|price||||||transfer||-29||
|||provide|||||||||||ion|
|Technol|subsidia|||||||||||||
|||labor|||||||||||Conce|
|ogy Co.,|ry|||||||||||||
|||services|||||||||||rned|
|Ltd.||||||||||||||
||||||||||||||for|
||||||||||||||year of|
||||||||||||||2016”|
||||||||||||||publis|
||||||||||||||hed on|
||||||||||||||Juchao|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Websit|
||||||||||||||e|
||||||||||||||“Expe|
||||||||||||||cted|
||||||||||||||Relate|
||||||||||||||d|
||||||||||||||Transa|
||||||||||||||ction|
||||||||||||||with|
|||Purchas|||||||||||Routin|
||Subsidia|||||||||||||
|||e|||||||||||e|
|Potevio|ry of||Telecom|||||||||||
|||product|||||||||||Operat|
|Hi-tech|controlli||municati|Market||||||Bank||2016-03||
|||and|||134.12|134.12|0.22%|1,000|No||134.12||ion|
|Industry|ng||on|price||||||transfer||-29||
|||receive|||||||||||Conce|
|Co., Ltd|sharehol||product|||||||||||
|||labor|||||||||||rned|
||der|||||||||||||
|||services|||||||||||for|
||||||||||||||year of|
||||||||||||||2016”|
||||||||||||||publis|
||||||||||||||hed on|
||||||||||||||Juchao|
||||||||||||||Websit|
||||||||||||||e|
||||||||||||||“Expe|
||||||||||||||cted|
||||||||||||||Relate|
||||||||||||||d|
||||||||||||||Transa|
||||||||||||||ction|
||||||||||||||with|
||Subsidia|Sales of|||||||||||Routin|
|Potevio|ry of|product|Telecom||||||||||e|
|Technol|controlli|and|municati|Market||||||Bank||2016-03|Operat|
||||||20.93|20.93|0.03%|4,500|No||20.93|||
|ogy Co.,|ng|provide|on|price||||||transfer||-29|ion|
|Ltd.|sharehol|labor|product||||||||||Conce|
||der|services|||||||||||rned|
||||||||||||||for|
||||||||||||||year of|
||||||||||||||2016”|
||||||||||||||publis|
||||||||||||||hed on|
||||||||||||||Juchao|
||||||||||||||Websit|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||e|
||||||||||||||“Expe|
||||||||||||||cted|
||||||||||||||Relate|
||||||||||||||d|
||||||||||||||Transa|
||||||||||||||ction|
||||||||||||||with|
||||||||||||||Routin|
||Subsidia|Sales of||||||||||||
|China|||||||||||||e|
||ry of|product|Telecom|||||||||||
|Potevio|||||||||||||Operat|
||controlli|and|municati|Market||||||Bank||2016-03||
|Compan|||||2,556.25|2,556.25|3.06%|18,700|No||2,556.25||ion|
||ng|provide|on|price||||||transfer||-29||
|y|||||||||||||Conce|
||sharehol|labor|product|||||||||||
|Limited|||||||||||||rned|
||der|services||||||||||||
||||||||||||||for|
||||||||||||||year of|
||||||||||||||2016”|
||||||||||||||publis|
||||||||||||||hed on|
||||||||||||||Juchao|
||||||||||||||Websit|
||||||||||||||e|
|Beijing||||||||||||||
|Putian||||||||||||||
||Subsidia|Sales of||||||||||||
|Taili||||||||||||||
||ry of|product|Telecom|||||||||||
|Telecom||||||||||||||
||controlli|and|municati|Market||||||Bank||||
|municati|||||3.69|3.69|0.00%|0|Yes||3.69|||
||ng|provide|on|price||||||transfer||||
|ons||||||||||||||
||sharehol|labor|product|||||||||||
|Technol||||||||||||||
||der|services||||||||||||
|ogy Co.,||||||||||||||
|Ltd.||||||||||||||
||Subsidia|Sales of||||||||||||
|Potevio|ry of|product|Telecom|||||||||||
|Hi-tech|controlli|and|municati|Market||||||Bank||||
||||||4.86|4.86|0.01%|0|Yes||4.86|||
|Industry|ng|provide|on|price||||||transfer||||
|Co., Ltd|sharehol|labor|product|||||||||||
||der|services||||||||||||
|Shangha|Subsidia|Sales of|||||||||||“Expe|
|i Putian|ry of|product|Telecom||||||||||cted|
|Youtong|controlli|and|municati|Market||||||Bank||2016-03|Relate|
||||||0.97|0.97|0.00%|100|No||0.97|||
|Technol|ng|provide|on|price||||||transfer||-29|d|
|ogy Co.,|sharehol|labor|product||||||||||Transa|
|Ltd.|der|services|||||||||||ction|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||with|
||||||||||||||Routin|
||||||||||||||e|
||||||||||||||Operat|
||||||||||||||ion|
||||||||||||||Conce|
||||||||||||||rned|
||||||||||||||for|
||||||||||||||year of|
||||||||||||||2016”|
||||||||||||||publis|
||||||||||||||hed on|
||||||||||||||Juchao|
||||||||||||||Websit|
||||||||||||||e|
|Hangzh||||||||||||||
|ou||||||||||||||
|Hongya|Subsidia|Sales of||||||||||||
|n|ry of|product|Telecom|||||||||||
|Dongbei|controlli|and|municati|Market||||||Bank||||
||||||1.31|1.31|0.00%|0|Yes||1.31|||
|Photoele|ng|provide|on|price||||||transfer||||
|ctric|sharehol|labor|product|||||||||||
|Technol|der|services||||||||||||
|ogy Co.,||||||||||||||
|Ltd.||||||||||||||
||||||||||||||“Expe|
||||||||||||||cted|
||||||||||||||Relate|
||||||||||||||d|
||||||||||||||Transa|
||||||||||||||ction|
||||||||||||||with|
|Shangha|Subsidia|Sales of||||||||||||
||||||||||||||Routin|
|i Putian|ry of|product|Telecom|||||||||||
||||||||||||||e|
|Network|controlli|and|municati|Market||||||Bank||2016-03||
||||||0.34|0.34|0.00%|100|No||0.34||Operat|
|Technol|ng|provide|on|price||||||transfer||-29||
||||||||||||||ion|
|ogy Co.,|sharehol|labor|product|||||||||||
||||||||||||||Conce|
|Ltd.|der|services||||||||||||
||||||||||||||rned|
||||||||||||||for|
||||||||||||||year of|
||||||||||||||2016”|
||||||||||||||publis|
||||||||||||||hed on|
||||||||||||||Juchao|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Websit|
||||||||||||||e|
||||||||||||||“Expe|
||||||||||||||cted|
||||||||||||||Relate|
||||||||||||||d|
||The||||||||||||Transa|
||joint||||||||||||ction|
||stock||||||||||||with|
|SEI-Nan|enterpris||||||||||||Routin|
|jing|e, senior||||||||||||e|
||||House|||||||||||
|Putian|executiv||||||||||||Operat|
||||and|Market||||||Bank||2016-03||
|Optical|es|Leasing|||40.12|40.12|36.51%|100|No||40.12||ion|
||||building|price||||||transfer||-29||
|Network|serves||||||||||||Conce|
||||s|||||||||||
|Co.,|as||||||||||||rned|
|Ltd.|director||||||||||||for|
||in the||||||||||||year of|
||enterpris||||||||||||2016”|
||e||||||||||||publis|
||||||||||||||hed on|
||||||||||||||Juchao|
||||||||||||||Websit|
||||||||||||||e|
||||||||||||||“Expe|
||||||||||||||cted|
||||||||||||||Relate|
||||||||||||||d|
||||||||||||||Transa|
||||||||||||||ction|
|||Tenant|||||||||||with|
||Subsidia|and|||||||||||Routin|
|Potevio|ry of|receivin|House||||||||||e|
|Hi-tech|controlli|g|and|Market|||100.00|||Bank||2016-03|Operat|
||||||570.93|570.93||1,400|No||570.93|||
|Industry|ng|relevant|building|price|||%|||transfer||-29|ion|
|Co., Ltd|sharehol|propert|s||||||||||Conce|
||der|y|||||||||||rned|
|||service|||||||||||for|
||||||||||||||year of|
||||||||||||||2016”|
||||||||||||||publis|
||||||||||||||hed on|
||||||||||||||Juchao|
||||||||||||||Websit|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||e|
|Total|--|--|4,250.03|--|30,000|--|--|--|--|--|
|Return of major sales|N/A||||||||||
|Report the actual implementation of|||||||||||
||Being deliberated and approved by BOD and Shareholders general meeting, the Company||||||||||
|the normal related transactions which|||||||||||
||made a prediction about routine related transactions for whole year of 2016, total amount||||||||||
|were projected about their total|||||||||||
||estimated less than RMB 322 million, actually occurred was RMB 42.5003 million in first||||||||||
|amount by types during the reporting|||||||||||
||half year.||||||||||
|period(if applicable)|||||||||||
|Reason for the great difference|||||||||||
|between trade price and market|Not applicable||||||||||
|reference price (if applicable)|||||||||||

2. Related transactions by assets acquisition and sold
□ Applicable√ Not applicable
The Company has no related transactions occurred by assets acquisition and sold in the Period
3. Major related transactions of mutual outward investment
□ Applicable√ Not applicable
The Company has no related transaction of mutual outward investment occurred in the Period
4. Contact of related credit and debt
√ Applicable□ Not applicable
Whether exist non-operating contact of related credit and debt or not
□Yes√No
The Company has no non-operating contact of related credit and debt occurred in Period
5. Other significant related transactions
√ Applicable□ Not applicable
(1) During the Period, The Company paying interes of consignment loan RMB 326,300 to controlling shareholder China Potevio Company Limited for RMB 30 million loans.
(2) During the Period, the Company offering RMB 1.535 million guarantee to joint enterprise SEI-Nanjing Putian Optical Network Co., Ltd.
Found more in 2. Guarantee in IX. of Section V
Website for temporary disclosure of the major connected transaction
||||
|-|-|-|
|Announcement|Date of disclosure|Website for disclosure|
|“Notice of Application of ConsignmentLoans for Controlling Shareholder”|||
||2016-04-29|Juchao Website|
|“Notice of Guarantee Offer to Joint-stockCompany”|||
||2015-07-15|Juchao Website|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||
|-|-|-|
|“Notice of Guarantee Offer to Joint-stockCompany”|||
||2016-03-29|Juchao Website|

VIII. Non-business capital occupying by controlling shareholders and its related parties□ Applicable√ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.
IX. Significant Contracts and its performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable√ Not applicable
The Company has no trusteeship in the Period
(2) Contract
□ Applicable√ Not applicable
The Company has no contracting in the Period
(3) Leasing
√ Applicable□ Not applicable
Explanation on leasing
In reporting period, the Company (including subsidiaries) rented the real estate from Potevio Hi-tech Industry Co., Ltd for purpose of production and office, the rental recognized in the period amounting to RMB 4,432,100.
Part of the subsidiary rent their real estate out in the Period, rental revenue in the Peirod amounting to RMB 1,099,100.
Items generated over10% gains/losses in total profit in reporting period for the Company
√Applicable□ Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Amount||||||||
|||||||Leasing|||||
||||involved in||||Determine||Consist of||
|||||||profit (in||Influence||Related|
|Contract-o||Assets|leasing(in|Leasing|Leasing||basis for||related||
||Lessee|||||10||on the||relationshi|
|ut party||leasing|10|date from|end at||leasing||transaction||
|||||||thousand||Company||p|
||||thousand||||profit||or not||
|||||||Yuan)|||||
||||Yuan)||||||||
||||||||The rental|The||Subsidiary|
||Nanjing||||||||||
|Potevio|||||||recognized|property||of|
||Putian||||||||||
|Hi-tech||House and||2016-01-0|2016-12-3||in the|under the||controlling|
||Telecomm||3,667.14|||-443.21|||Y||
|Industry||buildings||1|1||period|agreement||shareholde|
||unications||||||||||
|Co., Ltd|||||||amounting|refers to||r (stock|
||Co., Ltd.||||||||||
||||||||to RMB|the office||joint|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||
|-|-|-|-|
|4,432,100|and|e|nterprise|
||productionlocation oftheCompany;It benefitstoguaranteethe normaloperationdevelopment of theCompany.||of the|
||||Company)|

2. Guarantees
√Applicable□ Not applicable
In 10 thousand Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)|||||||||
|||||||||Guarante|
||Related||||||||
||||Actual date of|||||e for|
||||||||Implemen||
|Name of theCompany|Announcement|Guarantee|happening (Date|Actual|Guarantee|Guarantee||related|
|||limit|of signing|guarantee limit|type|term|ted (Y/N)||
|guaranteed|disclosure||agreement)|||||party|
||date||||||||
|||||||||(Y/N)|
|SEI-Nanjing|||||Jointly||||
|||||||2016.3.17-20|||
|Putian Optical|2015-07-15|600|2016-03-17|20|liability||N|Y|
|||||||16.7.16|||
|Network Co., Ltd.|||||guaranty||||
|SEI-Nanjing|||||Jointly||||
|||||||2016.2.1-201|||
|Putian Optical|2015-07-15|600|2016-02-01|62.5|liability||N|Y|
|||||||6.8.1|||
|Network Co., Ltd.|||||guaranty||||
|SEI-Nanjing|||||Jointly||||
|||||||2016.5.3-201|||
|Putian Optical|2016-03-29|600|2016-05-03|71|liability||N|Y|
|||||||6.8.2|||
|Network Co., Ltd.|||||guaranty||||
|||||Total actual occurred external|||||
|Total approving external||600||||153.5|||
|||||guarantee in report period|||||
|guarantee in report period (A1)|||||||||
|||||(A2)|||||
|Total approved external||||Total actual balance of|||||
|||600||||153.5|||
|guarantee at the end of report||||external guarantee at the end|||||
|period ( A3)||||of report period (A4)|||||
|Guarantee of the Company for the subsidiaries|||||||||
||Related||||||||
||||Actual date of|||||Guarante|
|Name of the|Announce||||||Implemen||
|||Guarantee|happening (Date|Actual|Guarantee|Guarantee|||
|Company|ment|||||||e for|
|||limit|of signing|guarantee limit|type|term|ted (Y/N)||
|guaranteed|disclosure||||||||
||||agreement)|||||related|
||date||||||||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||||party|
|||||||||(Y/N)|
||||||Jointly||||
|Nanjing Southern||||||2015.11.16-2|||
||2015-03-31|6,000|2015-11-16|2,000|liability||N|N|
|Telecom Co., Ltd.||||||016.8.11|||
||||||guaranty||||
||||||Jointly||||
|Nanjing Southern||||||2016.1.1-201|||
||2015-03-31|6,000|2016-01-01|1,000|liability||N|N|
|Telecom Co., Ltd.||||||6.9.30|||
||||||guaranty||||
||||||Jointly||||
|Nanjing Southern||||||2016.2.19-20|||
||2015-03-31|6,000|2016-02-19|1,000|liability||N|N|
|Telecom Co., Ltd.||||||17.2.19|||
||||||guaranty||||
||||||Jointly||||
|Nanjing Southern||||||2016.4.8-201|||
||2015-03-31|6,000|2016-04-08|1,000|liability||N|N|
|Telecom Co., Ltd.||||||7.4.8|||
||||||guaranty||||
||||||Jointly||||
|Nanjing Southern||||||2016.6.13-20|||
||2016-03-29|6,000|2016-06-13|1,000|liability||N|N|
|Telecom Co., Ltd.||||||17.6.13|||
||||||guaranty||||
|Nanjing Putian|||||Jointly||||
|||||||2015.8.31-20|||
|Telege Intelligent|2015-03-31|2,000|2015-08-31|500|liability||N|N|
|||||||16.8.31|||
|Building Co., Ltd.|||||guaranty||||
|Nanjing Putian|||||Jointly||||
|||||||2015.9.15-20|||
|Telege Intelligent|2015-03-31|2,000|2015-09-15|1,000|liability||N|N|
|||||||16.9.15|||
|Building Co., Ltd.|||||guaranty||||
|Nanjing Putian|||||Jointly||||
|||||||2016.5.10-20|||
|Telege Intelligent|2016-03-29|2,500|2016-05-10|1,000|liability||N|N|
|||||||17.2.10|||
|Building Co., Ltd.|||||guaranty||||
|||||Total amount of actual|||||
|Total amount of approving|||||||||
|||8,500||occurred guarantee for||5,000|||
|guarantee for subsidiaries in|||||||||
|||||subsidiaries in report period|||||
|report period (B1)|||||||||
|||||(B2)|||||
|||||Total balance of actual|||||
|Total amount of approved|||||||||
|||8,500||guarantee for subsidiaries at||8,500|||
|guarantee for subsidiaries at the|||||||||
|||||the end of reporting period|||||
|end of reporting period (B3)|||||||||
|||||(B4)|||||
|Guarantee of the Company for the subsidiaries|||||||||
|||||||||Guarante|
||Related||||||||
||||Actual date of|||||e for|
||||||||Implemen||
|Name of theCompany|Announcement|Guarantee|happening (Date|Actual|Guarantee|Guarantee||related|
|||limit|of signing|guarantee limit|type|term|ted (Y/N)||
|guaranteed|disclosure||agreement)|||||party|
||date||||||||
|||||||||(Y/N)|
|Total amount of guarantee of the Company( total of three abovementioned guarantee)|||||||||
|Total amount of approving||||Total amount of actual|||||
|||9,100||||5,153.5|||
|guarantee in report period||||occurred guarantee in report|||||
|(A1+B1+C1)||||period (A2+B2+C2)|||||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||
|-|-|-|-|
|Total amount of approved||Total balance of actualguarantee at the end of reportperiod (A4+B4+C4)||
||9,100||8,653.5|
|guarantee at the end of report||||
|period (A3+B3+C3)||||
|The proportion of the total amount of actually guarantee in the||||
|||26.60%||
|net assets of the Company (that is A4+ B4+C4)||||
|Including:||||
|Amount guarantee offering to shareholders, actual controller||||
|||0||
|and its related parties (D)||||
|The debts guarantee amount provided for the guaranteed||||
|||0||
|parties whose assets-liability ratio exceed 70% directly or||||
|indirectly(E)||||
|Proportion of total amount of guarantee in net assets of the||0||
|Company exceed 50%(F)||||
|Total amount of the aforesaid three guarantees(D+E+F)||0||
|Explanations on possibly bearing joint and several liquidating||||
|||N/A||
|responsibilities for undue guarantees (if applicable)||||
|Explanations on external guarantee against regulated||||
|||N/A||
|procedures (if applicable)||||

Explanation on guarantee with composite way
(1)Guarantee outside against the regulation
□Applicable√Not applicable
No guarantee outside against the regulation in Period.
3. Other material contracts
□ Applicable√ Not applicable
No other material contracts for the Company in reporting period
4. Other significant transactions
□ Applicable√ Not applicable
The Company has no other significant transaction in Period.
X. Commitments from the Company or shareholders (with over5% shares held) in or continued to reporting period
√Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
|||Content of|Commitment|Commitment||
|Commitments|Promise||||Implementation|
|||commitments|date|term||
|Commitments for||||||
|Share Merger Reform||||||
|Commitments in report of acquisition or||||||
|equity change||||||
|Commitments in assets reorganization||||||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||||
|-|-|-|-|-|-|
|Commitments make in initial public||||||
|offering or re-financing||||||
|||In order to||||
|||protect legal||||
|||interests of||||
|||every investor,||||
|||China Potevio||||
|||Information||||
|||Industry||||
|||Company||||
|||Limited (“China||||
|||Potevio”), as the||||
|||controlling||||
|||shareholder of||||
|||NJ TEL (stock||||
|||code: 200468),||||
|||hereby||||
|||undertakes as||||
|||follows: (1)as a||||
|||responsible||||
|||controlling||Commitment on||
|||shareholder,||not to reducing||
||China Potevio|||||
|Other commitments for medium and small||China Potevio||holding-shares:||
||Company||2015-07-08||Completed|
|shareholders||will not reduce||within six||
||Limited|||||
|||shareholding of||months since 8||
|||the Shares of the||July 2015||
|||Company in the||||
|||following six||||
|||months since 8||||
|||July 2015;||||
|||(2)currently,||||
|||Ningtongxin is||||
|||in stable||||
|||operation and||||
|||the main||||
|||business is in||||
|||normal||||
|||operation. China||||
|||Potevio will||||
|||continue to||||
|||promote||||
|||transformation||||
|||and structure||||
|||adjustment of||||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||
|-|-|-|
|||the Company|
|||through assets|
|||reorganization|
|||and optimization|
|||of resources|
|||allocation, so as|
|||to greatly|
|||improve the|
|||quality of our|
|||Company; (III)|
|||China Potevio|
|||will speed up|
|||establishment of|
|||investor return|
|||system of the|
|||Listed Company|
|||by improving its|
|||operating|
|||quality and|
|||profitability, so|
|||as to increase|
|||investor’s return|
|||on a continuous|
|||basis.|
|Completed on time(Y/N)|Y||
|If the commitments is not fulfilled on time,|||
|shall explain the specify reason and the|-||
|next work plan (if any)|||

XI. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□Yes√No
The semi-annual report has not been audited.
XII. Penalty and rectification
□ Applicable√ Not applicable
The Company has no penalty or rectification in Period.
XIII. Risk disclosure of delisting with laws and rules violated
□ Applicable√ Not applicable
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 The Company has no delisting risks with laws and rules violated in Period.
XIV. Explanation on other significant events
√ Applicable□ Not applicable
Index of major events disclosed in the Year form period-begin of the reporting period to the Report released:
||||
|-|-|-|
|Event|Date of disclosure|Query index for appointed website ofinformation disclosure|
|Performance Forecast for 2015 and Announcement ofImplement Delisting Risk Warning|2016.1.28|Juchao Website (www.cninfo.com.cn)|
|Resolution notice of 30th meeting of 6th session of theBoard|2016.3.29|Juchao Website (www.cninfo.com.cn)|
|Resolution notice of 17th meeting of 6th session ofsupervisory committee|2016.3.29|Juchao Website (www.cninfo.com.cn)|
|Summary of annual report of 2015|2016.3.29|Juchao Website (www.cninfo.com.cn)|
|Notice of provision for the devaluation of assets foryear of 2015|2016.3.29|Juchao Website (www.cninfo.com.cn)|
|Estimation of Routine Related Transaction for year of2016|2016.3.29|Juchao Website (www.cninfo.com.cn)|
|Guarantee offer to controlling subsidiary|2016.3.29|Juchao Website (www.cninfo.com.cn)|
|Guarantee offer to joint stock company|2016.3.29|Juchao Website (www.cninfo.com.cn)|
|Notice of Holding Annual General Meeting 2015|2016.3.29|Juchao Website (www.cninfo.com.cn)|
|Announcement of Implement Delisting Risk Warningfor Stock of the Company|2016.3.29|Juchao Website (www.cninfo.com.cn)|
|Informed Notice of Convening annual general meetingof 2015|2016.4.13|Juchao Website (www.cninfo.com.cn)|
|Inquiry Letter on Annual Report 2015 received fromShenzhen Stock Exchange|2016.4.15|Juchao Website (www.cninfo.com.cn)|
|Performance Forecast for 1Q of 2016|2016.4.15|Juchao Website (www.cninfo.com.cn)|
|Resolution notice of annual general meeting of 2015|2016.4.21|Juchao Website (www.cninfo.com.cn)|
|Resolution notice of 31st meeting of 6th session of theBoard|2016.4.29|Juchao Website (www.cninfo.com.cn)|
|Text of 1Q Report of 2016|2016.4.29|Juchao Website (www.cninfo.com.cn)|
|Application of Entrust Loans for ControllingShareholder|2016.4.29|Juchao Website (www.cninfo.com.cn)|
|Resolution notice of 32nd meeting of 6th session of theBoard|2016.6.16|Juchao Website (www.cninfo.com.cn)|
|Convening 1st extraordinary general meeting of 2016|2016.6.16|Juchao Website (www.cninfo.com.cn)|
|Informed Notice of Convening 1st extraordinary generalmeeting of 2016|2016.6.30|Juchao Website (www.cninfo.com.cn)|
|Resolution notice of 1st extraordinary general meetingof 2016|2016.7.7|Juchao Website (www.cninfo.com.cn)|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||
|-|-|-|
|Resolution notice of 33rd meeting of 6th session of theBoard|2016.7.8|Juchao Website (www.cninfo.com.cn)|
|Related Transaction of Application of Entrust Loans forControlling Shareholder|2016.7.8|Juchao Website (www.cninfo.com.cn)|
|Performance Forecast for Semi-Annual 2016|2016.7.15|Juchao Website (www.cninfo.com.cn)|

XV. Issuance of corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due but not fully cashed on the approval date of annual report
No
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section VI. Changes in Shares and Particulars about Shareholders I. Changes in Share Capital
In Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the Change||Increase/Decrease in the Change (+, -)|||||After the Change||
||||||Capitalizat|||||
||||New|||||||
|||||Bonusshares|ion ofpublic|||||
||Amount|Ratio|shares|||Others|Subtotal|Amount|Ratio|
||||issued|||||||
||||||reserve|||||
||115,000,0|||||||115,000,0||
|I. Unlisted shares||53.49%|||||||53.49%|
||00|||||||00||
||115,000,0|||||||115,000,0||
|1. Sponsor’s shares||53.49%|||||||53.49%|
||00|||||||00||
|Including: state-owned|115,000,0|||||||115,000,0||
|||53.49%|||||||53.49%|
|shares|00|||||||00||
||100,000,0|||||||100,000,0||
|II. Listed shares||46.51%|||||||46.51%|
||00|||||||00||
|2. Domestically listed|100,000,0|||||||100,000,0||
|||46.51%|||||||46.51%|
|foreign shares|00|||||||00||
||215,000,0|||||||215,000,0||
|III. Total shares||100.00%|||||||100.00%|
||00|||||||00||

Reasons for share changed
□ Applicable√ Not applicable
Approval of share changed
□ Applicable√ Not applicable
Ownership transfer for shares changed
□ Applicable√ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable√ Not applicable
Changes of total shares and shareholders structure as well as explanation on changes of assets and liability structure
□ Applicable√ Not applicable
II. Number of shares and shares held
In Share
|||||
|-|-|-|-|
|Total common shareholders at||Total preference shareholders|0|
||9,509|||
|end of reporting period||with voting rights recovered at||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||end of reporting period (if|||||
|||||applicable) (see Note 8)|||||
|Particulars about shares held above 5% by common shareholders or top 10 common shares holding|||||||||
||||||Amount|Amount|Number of share pledged/frozen||
||||Number||||||
||||||of|of|||
||||of||||||
|||||Changes|holding|holding|||
||||common||||||
||Nature of|Proportion of||in|unlisted|listed|||
|Shareholders|||shares||||||
||shareholder|shares held||reportin|common|common|State of share|Amount|
||||held at||||||
|||||g period|circulati|circulati|||
||||period-e||||||
||||||on|on|||
||||nd||||||
||||||shares|shares|||
|China PotevioCompanyLimited|State-ownedcorporate|53.49%|115,000,000|0|115,000,000|0|||
|ShenwanHongYuanSecurities (HK)Limited|Overseas corporate|3.69%|7,928,125|-91,900|0|7,928,125|||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Overseas corporate|1.73%|3,709,804|67,600|0|3,709,804|||
|GuosenSecurities (HK)Brokerage Co.,Ltd|Overseas corporate|1.38%|2,969,255|Unknown|0|2,969,255|||
|Zhang Hui’an|Domestic natureperson|1.31%|2,807,000|0|0|2,807,000|||
|Zheng Enyue|Domestic natureperson|1.10%|2,369,639|0|0|2,369,639|||
|BOCISECURITIESLIMITED|Overseas corporate|1.04%|2,236,928|2,016,928|0|2,236,928|||
|Sun Huiming|Domestic natureperson|0.93%|2,007,110|0|0|2,007,110|||
|Gu Jinhua|Domestic natureperson|0.83%|1,782,871|0|0|1,782,871|||
|Chen Chujia|Domestic natureperson|0.61%|1,304,506|Unknown|0|1,304,506|||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||
|-|-|-|-|
|Strategy investors or general||||
|corporate becomes top 10 common||||
||N/A|||
|shareholders due to rights issued (if||||
|applicable)(Note 3)||||
|Explanation on associated|Among the top ten shareholders, China Potevio Company Limited is neither a related party|||
|relationship among the aforesaid|nor a person acting in concert with the others. It’s unknown by the Company whether there are|||
|shareholders|related parties or persons acting in concert among the other shareholders.|||
|Particulars about the shares held by the top ten unrestricted common shareholders||||
||Amount of circulated common shares held at|Type of shares||
|Shareholders||||
||period-end|Type|Amount|
|Shenwan HongYuan Securities(HK) Limited|7,928,125|Domestically||
|||listed foreign||
|||shares||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|3,709,804|Domestically||
|||listed foreign||
|||shares||
|Guosen Securities (HK) BrokerageCo., Ltd|2,969,255|Domestically||
|||listed foreign||
|||shares||
|Zhang Huai’an|2,807,000|Domestically||
|||listed foreign||
|||shares||
|Zheng Enyue|2,369,639|Domestically||
|||listed foreign||
|||shares||
|BOCI SECURITIES LIMITED|2,236,928|Domestically||
|||listed foreign||
|||shares||
|Sun Huiming|2,007,110|Domestically||
|||listed foreign||
|||shares||
|Gu Jinhua|1,782,871|Domestically||
|||listed foreign||
|||shares||
|Chen Chujia|1,304,506|Domestically||
|||listed foreign||
|||shares||
|Liu Fang|1,194,225|Domestically||
|||listed foreign||
|||shares||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||
|-|-|
|Expiation on associated relationship||
|or consistent actors within the top||
||It is unknown whether the shareholders just mentioned belong to consistent actors or have|
|10 un-restrict common shareholders||
||associated relationship.|
|and between top 10 un-restrict||
|common shareholders and top 10||
|common shareholders||
|Explanation on top ten common||
|shareholders involving margin|N/A|
|business (if applicable)(note 4)||

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.
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable√ Not applicable
Controlling shareholder of the Company has no changed in the Period
Changes of actual controller in reporting period
□ Applicable√ Not applicable
Actual controller of the Company has no changed in the Period
IV. Share holding increasing plan proposed or implemented in reporting period from shareholder of the Company and its concerted action person
□ Applicable√ Not applicable
No share holding increasing plan proposed or implemented in reporting period from shareholder of the Company and its concerted action person as the Company knows.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section VII. Preferred Stock
□ Applicable√ Not applicable
The Company had no preferred stock in the reporting.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section VIII. Directors, Supervisors and Senior Executives I. Changes of shares held by directors, supervisors and senior executives
□ Applicable√ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report 2015.
II. Change of directors, supervisors and senior executive
√Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Cause|
|||||Mr. Li Linzhen was appointed as GM of the Company|
|Li Linzhen|GM|Appointment|2016-06-15||
|||||by BOD|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section IX. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes√ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 CONSOLIDATED BALANCE SHEET— UNAUDITED
as at 30 June 2016
PREPARED BY: Nanjing Putian Telecommunications Co., Ltd. Monetary unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|NoteNo.|Closing balance ofperiod|Opening balance ofperiod|Liabilities & Shareholders' Equity|NoteNo.|Closing balance ofperiod|
|1234567891011121314|294,790,812.5622,404,369.15921,828,223.9648,890,834.0443,202,776.35383,603,940.867,381,077.561,722,102,034.48741,953.00186,413,712.9830,462,263.9476,081,965.3126,564,131.2426,614,704.002,333,560.08349,212,290.55|461,959,184.3432,339,829.72778,052,456.8436,692,329.0732,234,571.22390,501,461.168,738,631.961,740,518,464.31741,953.00185,858,240.8731,076,520.6179,575,268.2026,629,692.2927,199,062.052,070,918.32353,151,655.34|Current liabilities:Short-term borrowingsCentral bank loansAbsorbing deposit and interbank depositLoans from other banksFinancial liabilities at fair value through profit orlossDerivative financial liabilitiesNotes payableAccounts payableAdvances receivedProceeds from sale of repurchase financial assetsHandling fee and commission payableEmployee benefits payableTaxes and rates payableInterest payableDividend payableOther payablesReinsurance accounts payableProvision for insurance contractsDeposit for agency security transactionDeposit for agency security underwritingLiabilities classified as held-for-saleNon-current liabilities due within one yearOther current liabilitiesTotal current liabilitiesNon-current liabilities:Long-term borrowingsBonds payableIncluding: Preference sharesPerpetual bondsLong-term payablesLong-term staff remuneration payablesSpecial payablesProvisionsDeferred incomeDeferred tax liabilitiesOther non-current liabilitiesTotal non-current liabilitiesTotal liabilitiesShareholders' equity:Share capital/Paid-in capitalOther equityIncluding: Preference sharesPerpetual bondsCapital reserveLess: treasury sharesOther comprehensive incomeSpecial reserveSurplus reserveGeneral risk reserveUndistributed profitTotal equity attributable to the parent companyNon-controlling interestTotal equity|15161718192021222324252627282930|4 14,500,000.001 27,511,550.009 46,036,989.978 0,165,899.921 6,623,165.321 5,788,289.865 62,892.071 ,692,213.383 2,466,706.751 ,635,347,707.278 0,118.005 24,370.166 04,488.161 ,635,952,195.432 15,000,000.001 85,374,533.85- 4,440,820.175 89,559.77- 71,165,610.273 25,357,663.181 10,004,466.424 35,362,129.60|
||2,071,314,325.03|2 ,093,670,119.65|Total liabilities & shareholders' equity||2 ,071,314,325.03|

 Legal representative: Li Linzhen
Person in charge of accounting work: Shi Lian
Person in charge of accounting organ: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 BALANCE SHEET OF THE PARENT COMPANY— UNAUDITED
as at 30 June 2016
PREPARED BY: Nanjing Putian Telecommunications Co., Ltd. Monetary unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||NoteNo.|Closing balance ofperiod|Opening balance ofperiod|Liabilities & Shareholders' Equity|NoteNo.|Closing balance ofperiod|
|Current assets:Cash and bank balancesFinancial assets at fairvalue through profit or lossDerivative financial assetsNotes receivableAccounts receivableAdvances paidInterest receivableDividend receivableOther receivablesInventoriesAssets classified as held-for-saleNon-current assets duewithin one yearOther current assetsTotal current assets|123|113,271,559.911,878,060.65534,825,199.7918,054,037.0250,116,056.90206,077,684.412,413.04924,225,011.72741,953.00355,523,063.5422,749,746.3626,464,131.247,964,420.951,980,188.08415,423,503.17|211,695,287.975,662,078.50425,991,743.8618,699,725.0438,064,365.03205,855,446.342,413.04905,971,059.78741,953.00355,124,586.0123,878,833.2326,529,692.298,254,244.951,671,454.32416,200,763.80|Current liabilities:||286,000,000.00123,511,550.00555,645,451.4934,648,351.236,119,516.678,381,474.03208,892.07168,810,428.351,183,325,663.8480,118.00524,370.16604,488.161,183,930,152.00215,000,000.00172,417,299.81589,559.76-232,288,496.68155,718,362.89|
|||||Short-term borrowingsFinancial liabilities at fair valuethrough profit or lossDerivative financial liabilitiesNotes payableAccounts payableAdvances receivedEmployee benefits payableTaxes and rates payableInterest payableDividend payableOther payablesLiabilities classified as held-for-saleNon-current liabilities due within oneyearOther current liabilities|||
|||||Total current liabilities|||
|||||Non-current liabilities:|||
|||||Long-term borrowings|||
|||||Bonds payable|||
|||||Including: Preferred shares|||
|||||Perpetual bonds|||
|||||Long-term payables|||
|||||Long-term employee benefits|||
|||||p aSypaebclieal payables|||
|Available-for-salefinancial assetsHeld-to-maturityi nLvoensgtm-teenrmts receivableLong-term equityinvestmentsInvestment propertyFixed assets||||ProvisionsDeferred incomeDeferred tax liabilitiesOther non-current liabilitiesTotal non-current liabilitiesTotal liabilities|||
|Construction in progressConstruction materialsFixed assets disposalBiological assetsOil & gas assetsIntangible assetsDevelopment expendituresGoodwillLong-term prepaymentsDeferred tax assetsOther non-current assetsTotal non-current assets||||Shareholders' equity:|||
|||||Share capital/Paid-in capitalOther equityIncluding: Preferred sharesPerpetual bondsCapital reserveLess: treasury sharesOther comprehensive incomeSpecial reserveSurplus reserveUndistributed profitTotal equity|||
|Total assets||1 ,339,648,514.89|1 ,322,171,823.58|Total liabilities & shareholders' equity||1,339,648,514.89|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 CONSOLIDATED INCOME STATEMENT— UNAUDITED
for the six months ended 30 June 2016
PREPARED BY: Nanjing Putian Telecommunications Co., Ltd. Monetary unit: RMB Yuan
|||
|-|-|
|Note No.|Current period|
|11234567891011|8 34,739,223.478 34,739,223.478 53,416,882.486 86,173,649.024 ,387,733.298 0,474,718.486 9,513,112.101 1,247,942.961 ,619,726.639 17,844.119 17,844.11- 17,759,814.903 ,864,657.273 0,429.968 1,403.561 6,712.60- 13,976,561.193 ,235,803.32- 17,212,364.51- 21,109,095.633 ,896,731.12- 241,817.20- 217,635.48- 217,635.48- 217,635.48- 24,181.72- 17,454,181.71- 21,326,731.113 ,872,549.40- 0.10- 0.10|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 INCOME STATEMENT OF THE PARENT COMPANY— UNAUDITED
for the six months ended 30 June 2016
PREPARED BY: Nanjing Putian Telecommunications Co., Ltd. Monetary unit: RMB Yuan
|||
|-|-|
|Note No.|Current period|
|112|3 49,225,599.243 03,368,276.901 ,939,343.253 7,592,065.042 7,500,532.778 ,778,329.361 ,351,891.247 60,849.537 60,849.53- 30,543,989.791 ,153,404.835 2,324.49- 29,442,909.45- 29,442,909.45- 29,442,909.45- 0.14- 0.14|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 CONSOLIDATED CASH FLOW STATEMENT— UNAUDITED
for the six months ended 30 June 2016
PREPARED BY: Nanjing Putian Telecommunications Co., Ltd. Monetary unit: RMB Yuan
|||
|-|-|
|Note|Current period|
|No.12|9 34,700,876.852 ,560,296.704 7,740,548.029 85,001,721.578 02,685,394.001 25,026,411.423 2,610,794.241 21,260,532.801 ,081,583,132.46- 96,581,410.893 62,372.003 2,592.243 94,964.241 ,667,289.751 ,667,289.75- 1,272,325.513 17,500,000.003 17,500,000.003 61,000,000.001 7,884,722.623 78,884,722.62- 61,384,722.62- 273,093.14- 159,511,552.164 05,920,943.682 46,409,391.52|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 CASH FLOW STATEMENT OF THE PARENT COMPANY— UNAUDITED
for the six months ended 30 June 2016
PREPARED BY: Nanjing Putian Telecommunications Co., Ltd. Monetary unit: RMB Yuan
||||
|-|-|-|
||NoteNo.|Current period|
|I. Cash flows from operating activities:Cash receipts from sale of goods and rendering of servicesReceipts of tax refundOther cash receipts related to operating activitiesSubtotal of cash inflows from operating activities||3 79,526,190.682 39,819.416 63,533.603 80,429,543.693 02,330,893.015 3,370,601.934 ,468,888.315 5,865,617.234 16,036,000.48- 35,606,456.793 62,372.003 1,378.653 93,750.651 ,256,889.191 ,256,889.19- 863,138.542 36,000,000.002 36,000,000.002 96,000,000.009 ,504,963.823 05,504,963.82- 69,504,963.826 8,383.33- 105,906,175.821 92,969,689.69|
|VI. Closing balance of cash and cash equivalents||8 7,063,513.87|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY— UNAUDITED
for the six months ended 30 June 2016
PREPARED BY: Nanjing Putian Telecommunications Co., Ltd. Monetary unit: RMB Yuan
||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Current period|||||||||||||||||||||||||||
|Shareholders' equity attributable to parent company||||||||||||Non-controlling interests|Total shareholders' equity|Shareholders' equity attributable to parent company||||||||||||Non-controllinginterests|
|Share capital|Other equity instruments|||Capital reserve|Less:treasuryshares|Othercomprehensiveincome|Specialreserve|Surplus reserve|Generalriskreserve|Undistributed profit|Others|||Share capital|Other equity instruments|||Capital reserve|Less:treasuryshares|Othercomprehensiveincome|Specialreserve|Surplus reserve|Generalriskreserve|Undistributedprofit|Others||
||Preferenceshares|Perpetual bonds|Others||||||||||||Preferenceshares|Perpetual bonds|Others||||||||||
|2 15,000,000.00||||1 85,374,533.85||- 4,223,184.69||5 89,559.77||- 50,056,514.64||1 06,131,917.02|4 52,816,311.31|2 15,000,000.00||||1 85,374,533.85||- 3,318,496.10||5 89,559.77||- 33,465,684.38||1 03,102,591.99|
|2 15,000,000.00||||1 85,374,533.85||- 4,223,184.69||5 89,559.77||- 50,056,514.64||1 06,131,917.02|4 52,816,311.31|2 15,000,000.00||||1 85,374,533.85||- 3,318,496.10||5 89,559.77||- 33,465,684.38||1 03,102,591.99|
|||||||- 217,635.48||||- 21,109,095.63||3 ,872,549.40|- 17,454,181.71|||||||5 ,538.07||||- 16,613,763.93||2 ,955,760.64|
|||||||- 217,635.48||||- 21,109,095.63||3 ,872,549.40|- 17,454,181.71|||||||5 ,538.07||||- 16,613,763.93||2 ,955,760.64|
|2 15,000,000.00||||1 85,374,533.85||- 4,440,820.17||5 89,559.77||- 71,165,610.27||1 10,004,466.42|4 35,362,129.60|2 15,000,000.00||||1 85,374,533.85||- 3,312,958.03||5 89,559.77||- 50,079,448.31||1 06,058,352.63|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY OF THE PARENT COMPANY— UNAUDITED
for the six months ended 30 June 2016
PREPARED BY: Nanjing Putian Telecommunications Co., Ltd. Monetary unit: RMB Yuan
||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Current period|||||||||||||||||||||
|Share capital|Other equity instruments|||Capital reserve|Less: treasury shares|Other comprehensive income|Special reserve|Surplus reserve|Undistributed profit|Total equity|Share capital|Other equity instruments|||Capital reserve|Less: treasury shares|Other comprehensive income|Special reserve|Surplus reserve|Undistributed profit|
||Preference shares|Perpetual bonds|Others|||||||||Preference shares|Perpetual bonds|Others|||||||
|2 15,000,000.00||||1 72,417,299.81||||5 89,559.76|- 202,845,587.23|1 85,161,272.34|2 15,000,000.00||||1 72,417,299.81||||5 89,559.76|- 167,231,735.64|
|2 15,000,000.00||||1 72,417,299.81||||5 89,559.76|- 202,845,587.23|1 85,161,272.34|2 15,000,000.00||||1 72,417,299.81||||5 89,559.76|- 167,231,735.64|
||||||||||- 29,442,909.45|- 29,442,909.45||||||||||- 30,579,685.33|
||||||||||- 29,442,909.45|- 29,442,909.45||||||||||- 30,579,685.33|
|2 15,000,000.00||||1 72,417,299.81||||5 89,559.76|- 232,288,496.68|1 55,718,362.89|2 15,000,000.00||||1 72,417,299.81||||5 89,559.76|- 197,811,420.97|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Semi-annual Report 2016
Monetary unit: RMB Yuan I. Company profile
Nanjing Putian Telecommunications Co., Ltd. (the “Company”) is the original Nanjing Telecommunication Facility Factory. It was established as a limited company by raising money which was approved by National Economic Institutional Reform Commission with its TGS (1997) No.28 issued on 21 March 1997. The Company was listed in Shenzhen Stock Exchange on 22 May 1997. TheCompany’s registration address is No.1 Putian Road, Qinhuai District, Nanjing City, Jiangsu Province. The Company acquired a corporate business license numbered 91320000134878054G, with registered capital of RMB215,000,000.00, total share of 215,000,000.00 in issue with the nominal value of RMB1 each.
The Company belongs to telecommunication equipment manufacture industry and is mainly engaged in researching and manufacturing the data, wire and wireless telecommunication equipment, distribution and allocation of layout of telecommunication product, and researching and developing, producing and selling multimedia computer, digital television, vehicle electronics and conference video system. The main services rendered by the Company include installation and maintenance equipment, communication information network and computer information system projects design, and systems integration and related consultancy service.
The financial report has been deliberated and approved by the 34th meeting of the 6th session of the Board of Directors on 26 August 2016.
The Company has brought 11 subsidiaries including南京南方电讯有限公司（Nanjing South Telecommunications Company Limited1）,南京普天天纪楼宇智能有限公司（Nanjing Putian Telege Intelligent BuildingLtd.*） and南京曼奈柯斯电器有限公司（Nanjing Mennekes Electrics Co.,Ltd.*） etc. into the consolidated scope. Please refer to notes to changes in the consolidated scope and equity in other entities for details.
II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements have been prepared on the basis of going concern.
(II) Assessment of the ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon theCompany’s ability to continue as a going concern within the 12 months after the balance sheet date.
III. Significant accounting policies and estimates
1 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Important note:
The Company has set up accounting policies and estimates on transactions or events such as provision for bad debts of receivables, depreciation of fixed assets, amortization of intangible assets, and revenue recognition, etc. based on theCompany’s actual production and operation features.
(I) Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting Standards for Business Enterprises (CASBEs), and present truly and completely the financial position, results of operations and cash flows of the Company. (II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
(III) Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is classified as current if it is expected to be realized or due within 12 months.
(IV) Functional currency
TheCompany’s functional currency is Renminbi (RMB) Yuan.
(V) Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined party included in the consolidated financial statements of the ultimate controlling party at the combination date. Difference between carrying amount of the equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that of the combination consideration or total par value of shares issued is adjusted to capital reserve, if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date, theexcess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and contingent liabilities, and the measurement of the combination cost are reviewed, then the difference is recognized in profit or loss.
(VI) Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into its consolidation scope. The consolidated financial statements are compiled by the parent company according to “CASBE 33 - Consolidated Financial Statements”, based on relevant information and the financial statements of the parent company and its subsidiaries.
(VII) Classification of joint arrangements and accounting treatment of joint operations
1. Joint arrangements include joint operations and joint ventures.
2. When the Company is a joint operator of a joint operation, it recognizes in relation to its interest in a joint operation: (1) its assets, including its share of any assets held jointly;
(2) its liabilities, including its share of any liabilities incurred jointly;
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 (3) its revenue from the sale of its share of the output arising from the joint operation;
(4) its share of the revenue from the sales of the output by the joint operation; and
(5) its expenses, including its share of any expenses incurred jointly.
(VIII) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash equivalents refer to short-term, highly liquid investments that can be readily converted to cash and that are subject to an insignificant risk of changes in value.
(IX) Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at the transaction date at initial recognition. At the balance sheet date, monetary items denominated in foreign currency are translated at the spot exchange rate at the balance sheet date with difference, except for those arising from the principal and interest of exclusive borrowings eligible for capitalization, included in profit or loss; non-cash items carried at historical costs are translated at the spot exchange rate at the transaction date, with its RMB amount unchanged; non-cash items carried at fair value in foreign currency are translated at the spot exchange rate at the date when the fair value was determined, with difference included in profit or loss or other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot rate at the balance sheet date; the equity items, other than undistributed profit, are translated at the spot rate at the transaction date; the revenues and expenses in the income statement are translated into RMB at the spot exchange rate at the transaction date. The difference arising from foreign currency translation is included in other comprehensive income.
(X) Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following four categories when initially recognized: financial assets at fair value through profit or loss (including held-for-trading financial assets and financial assets designated at initial recognition as at fair value through profit or loss), held-to-maturity investments, loans and receivables, and available-for-sale financial assets.
Financial liabilities are classified into the following two categories when initially recognized: financial liabilities at fair value through profit or loss (including held-for-trading financial liabilities and financial liabilities designated at initial recognition as at fair value through profit or loss), and other financial liabilities.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial liability. The financial assets and financial liabilities initially recognized by the Company are measured at fair value; for the financial assets and liabilities at fair value through profit or loss, the transaction expenses thereof are directly included in profit or loss; for other categories of financial assets and financial liabilities, the transaction expenses thereof are included into the initially recognized amount.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 The Company measures its financial assets at fair value subsequent to initial recognition, and does not deduct the transaction expenses that may occur when it disposes of the said financial asset in the future. However, those under the following circumstances are excluded: (1) the held-to-maturity investments, loans and receivables are measured at amortized costs using effective interest method; (2) the equity instrument investments for which there is no quotation in the active market and whose fair value cannot be measured reliably, and the derivative financial assets which are connected with the said equity instrument and must be settled by the delivery of the said equity instrument are measured at their costs.
The Company measures its financial liabilities at the amortized costs using effective interest method, with the exception of those under the following circumstances: (1) for the financial liabilities at fair value through profit or loss, they are measured at fair value, and none of the transaction expenses may be deducted, which may occur when the financial liabilities are settled in the future; (2) for the derivative financial liabilities, which are connected to the equity instrument for which there is no quotation in the active market and whose fair value cannot be reliably measured, and which must be settled by the delivery of the equity instrument, they are measured at their costs; (3) for the financial guarantee contracts which are not designated as a financial liability at fair value through profit or loss, and for the commitments to grant loans which are not designated as at fair value through profit or loss and which will enjoy an interest rate lower than that of the market, they are measured subsequent to initial recognition at the higher of the following two items 1) The amount as determined according to “CASBE13 - Contingencies”; 2) the surplus after accumulative amortization as determined according to “CASBE14 - Revenues”.
The gains or losses arising from changes in fair value of financial assets or financial liabilities, if not related to hedging, are measured with the following methods: (1) Gains or losses, arising from the changes in fair value of financial asset or liability at its fair value through profit or loss, is included in gains or losses on changes in fair value; interests or cash dividends gained during the asset-holding period are recognized as investment income; when disposing of the assets, investment income is recognized at the difference between the actual amount received and the initial recorded amount, at the same time, gains or losses on changes in fair value are adjusted accordingly. (2) For available-for-sale financial asset, changes in fair value are recorded as other comprehensive income during the holding period, interests measured at effective interest method are recorded as investment income; cash dividends from available-for-sale equity instrument investment are recognized as investment income at the date of dividend declaration; when disposing of the assets, investment income is recognized at the difference between the actual amount received and the book value deducting the accumulative amount of changes in fair value originally included in other comprehensive.
Financial assets are derecognized when the contractual rights for collecting the cash flow of the said financial assets expire or substantially all risks and rewards related to the said financial assets have been transferred. Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial liability be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the financial asset to the transferee, it derecognizes the financial asset. If it retained substantially all of the risks and rewards related to the ownership of the financial asset, it continues recognizing the financial asset, and the consideration received is recognized as a financial liability. Where the Company does not transfer or retain substantially all of the risks and rewards related to the ownership of a financial asset, it is dealt with according to the circumstances as follows respectively: (1) if the Company gives up its control over the financial asset, it derecognizes the financial asset; (2) if
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 the Company does not give up its control over the financial asset, according to the extent of its continuing involvement in the transferred financial asset, it recognizes the related financial asset and recognizes the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the following two items are included in profit or loss: (1) the book value of the transferred financial asset; (2) the sum of consideration received from the transfer, and the accumulative amount of the changes of the fair value originally included in equity. If the transfer of financial asset partially satisfies the conditions to derecognition, the entire book value of the transferred financial asset is, between the portion which is derecognized and the portion which is not, apportioned according to their respective relative fair value, and the difference between the amounts of the following two items are included into profit or loss: (1) the book value of the portion which is derecognized; (2) the sum of consideration of the portion which is derecognized, and the portion of the accumulative amount of the changes in the fair value originally included in equity which is corresponding to the portion which is derecognized.
4. Fair value determination method of financial assets and liabilities
The Company use valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the following hierarchy and used accordingly:
(1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability, for example, interest rates and yield curves observable at commonly quoted intervals; market-corroborated inputs; (3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not observable and cannot be corroborated by observable market data at commonly quoted intervals, historical volatility, future cash flows to be paid to fulfill the disposal obligation assumed in business combination, and financial forecast developed using theCompany’s own data, etc. 5. Impairment test and provision for impairment loss of financial assets
(1) An impairment test is carried out at the balance sheet date on the financial assets other than those at fair value through profit or loss, and provisions for impairment loss should be made if there is objective evidence indicating impairment loss.
(2) For held-to-maturity investments, borrowings, and receivables, an impairment test is made on an individual basis on financial assets of individually significant amount; with regard to the financial assets of individually insignificant amount, they may be included in a portfolio of financial assets with similar credit risk features so as to carry out an impairment-related test; where, upon the impairment test on an individual basis, the financial asset (including those financial assets of individually significant amount and of individually insignificant amount) is not impaired, it is included in a portfolio of financial assets with similar credit risk features so as to conduct further impairment test.Where a financial asset is impaired, the carrying amount of the said financial asset is written down to the present value of the predicted future cash flow.
(3) Available-for-sale financial assets
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 1) Objective evidence indicating that available-for-sale debt instrument investments may be impaired includes:
a. significant financial difficulties in the debtor;
b. breach of contract by the debtor, such as principal or interest past due or default;
c. concessions made to debtors with financial difficulties considering economic and legal factors;
d. it is highly probable that the debtor is going to dissolve or going through other terms of financial restructuring; e. owing to significant financial difficulties occurred to the debtor, the debt instrument is discontinued to trade in active market; or
f. Other circumstances indicating that available-for-sale debt instrument may be impaired.
2) Evidence indicating that available-for-sale equity instrument investment may be impaired includes the fair value of equity instrument investment is suffered from significant or non-temporary decline and the technical, market, economic, or legal environment in which the investee operates has significant adverse changes under which the Company may not be able to recover its investment cost.
The Company performs review on available-for-sale equity instrument investment on an individual basis at the balance sheet date. For equity instrument investment at fair value, if the balance sheet date fair value is50% or above lower than the cost, or the balance sheet date fair value has been lower than the cost for a consecutive of 12 months or longer, it is determined that such equity instrument investment is impaired; if the balance sheet date fair value is20% or above but not exceeding50% lower than the cost, or the balance sheet date fair value has been lower than the cost for a consecutive of 6 months or longer but not exceeding 12 months, the Company may take other factors such as price volatility into consideration in determining whether such equity instrument investment is impaired. For equity instrument investment at cost, the Company considers whether the technical, market, economic, or legal environment in which the investee operates has significant adverse changes to determine whether such equity instrument is impaired.
When an available-for-sale financial asset at fair value is impaired, the cumulative loss arising from decline in fair value that has been recognized directly in other comprehensive income is reclassified to impairment loss. If, after an impairment loss has been recognized on available-for-sale debt instrument investment, there is objective evidence of a recovery in value of the financial asset which can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss. Subsequent fair value increase in available-for-sale debt instrument investment whose impairment loss has been recognized is directly recognized in other comprehensive income.
When an available-for-sale equity instrument at cost is impaired, impairment loss on such equity instrument investment is recognized at any excess of its carrying amount over the present value of future cash flows, and such impairment loss is not reversed upon recognition.
(XI) Receivables
1. Receivables of individually significant amount and with provision made on an individual basis
Judgment basis or amount criteria of
Receivables amounting to more than 10 million yuan
individually significant amount
Provision method for receivables of Provisions are made on the difference between the lower
individually significant amount and of present value of future cash flow and their carrying
with provision made on an individual amount based on impairment testing on an individual
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 basis basis.
2. Receivables with provision made on a collective basis using portfolios with similar credit risk features
(1) Specific portfolios and provision method
Provision method of provision being made on collective basis using portfolios with similar credit
risk features:
Grouped with related party balances within the consolidation
Portfolio 1
scope
Portfolio 2 Grouped with age
Portfolios and provision method
Portfolio 1 No provision
Portfolio 2 Age analysis method
(2) Age analysis method
||
|-|
|Proportion of provision foraccounts receivable (%)|
|0.00|
|0.00|
|10.00|
|30.00|
|40.00|
|80.00|
|100.00|

3. Receivables of individually insignificant amount but with provision made on an individual basis
Impairment test on an individual basis with objective
Reasons for provision made on an
individual basis evidence indicating that the receivable is impaired
Provision method Provision method made on an individual basis
For other receivables such as notes receivable, interest receivable and long-term receivable, etc., provision for bad debts is made at the difference between the present value of future cash flow and the carrying amount.
(XII) Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in process in the process of production, and materials or suppliers etc. to be consumed in the production process or in the rendering of services.
2. Accounting method for dispatching inventories:
Inventories dispatched from storage are accounted for with weighted average method.
3. Basis for determining net realizable value
At the balance sheet date, inventories are measured at the lower of cost or net realizable value; provisions for inventory write-down
are made on the excess of its cost over the net realizable value. The net realizable value of inventories held for sale is determined
based on the amount of the estimated selling price less the estimated selling expenses and relevant taxes and surcharges in the
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 ordinary course of business; the net realizable value of materials to be processed is determined based on the amount of the estimated selling price less the estimated costs of completion, selling expenses and relevant taxes and surcharges in the ordinary course of business; at the balance sheet date, when only part of the same item of inventories have agreed price, their net realizable value is determined separately and is compared with their costs to set the provision for inventory write-down to be made or reversed. 4. Inventory system
Perpetual inventory method is adopted.
5. Amortization method of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized with one-off method.
(2) Packages
Packages are amortized with one-off method.
(XIII) Assets classified as held-for-sale
Non-current assets (excluding financial assets) are accounted for as held-for-sale when the following conditions are all met: a. the component must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such component; b. the Company has made a decision on the disposal of the component; c. the Company has signed an irrevocable transfer agreement with the transferee; and d. the transfer is expected to be completed within one year.
(XIV) Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that it makes payment in cash, transfers non-cash assets, assumes its liabilities or issues equity securities, on the date of combination, it regards the share of the carrying amount of the equity of the combined party included the consolidated financial statements of the ultimate controlling party as the initial cost of the investment. The difference between the initial cost of the long-term equity investment and the carrying value of the combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
When long-term equity investments are obtained through business combination under common control achieved in stages, the Company determines whether it is a “bundled transaction”.If it is a “bundled transaction”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “bundled transaction”, investment cost is initially recognized at the share of the carrying amount of net assets of the combined party included the consolidated financial statements of the ultimate controlling party. The difference between the acquisition-date investment cost of long-term equity investments and the carrying amount of the previously held long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings. (2) For business combination not under common control, investment cost is initially recognized at the acquisition-date fair value of considerations paid.
When long-term equity investments are obtained through business combination not under common control achieved in stages, the
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Company determined whether they are stand-alone financial statements or consolidated financial statements in accounting treatment: 1) In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amount of the previously held long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity.
2) In the case of consolidated financial statements, the Company determines whether it is a “bundled transaction”. If it is a “bundled transaction”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “bundled transaction”, the carrying value of theacquirer’s previously held equity interest in the acquire is re-measured at the acquisition-date fair value, and the difference between the fair value and the carrying amount is recognized in investment income; when theacquirer’s previously held equity interest in the acquire involves other comprehensive income under equity method, the related other comprehensive income is reclassified as income for the acquisition period, excluding other comprehensive income arising from changes in net liabilities or assets from re-measurement of defined benefit plan of the acquiree.
(3) Long-term equity investment obtained through ways other than business combination: the initial cost of a long-term equity investment obtained by making payment in cash is the purchase cost which is actually paid; that obtained on the basis of issuing equity securities is the fair value of the equity securities issued; that obtained through debt restructuring is determined according to “CASBE12 - Debt Restructuring”; and that obtained through non-cash assets exchange is determined according to “CASBE7 - Non-cash Assets Exchange”.
3. Subsequent measurement and recognition method of gain or loss
For long-term equity investment with control relationship, it is accounted for with cost method; for long-term equity investment with joint control or significant influence relationship, it is accounted for with equity method.
4. Disposal of a subsidiary in stages resulting in theCompany’s loss of control
(1) Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained thereof is recognized in profit or loss. If the disposal does not result in theCompany’s loss of significant influence or joint control, the remained equity is accounted for with equity method; however, if the disposal results in theCompany’s loss of control, joint control, or significant influence, the remained equity is reclassified as available-for-sale financial assets, and accounted for according to CASBE 22–Financial Instruments: Recognition and Measurement.
(2) Consolidated financial statements
1) Disposal of a subsidiary in stages not qualified as “bundled transaction” resulting in theCompany’s loss of control
Before theCompany’s loss of control, the difference between the disposal consideration and the proportionate share of net assets in the disposed subsidiary from acquisition date or combination date to the disposal date is adjusted to capital reserve (capital premium), if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
When the Company loses control, the remained equity is re-measured at the loss-of-control-date fair value. The aggregated value of disposal consideration and the fair value of the remained equity, less the share of net assets in the disposed subsidiary held before the disposal from the acquisition date or combination date to the disposal date is recognized in investment income in the period when the Company loses control over such subsidiary, and meanwhile goodwill is offset correspondingly. Other comprehensive income related to equity investments in former subsidiary is reclassified as investment income upon theCompany’s loss of control.
2) Disposal of a subsidiary in stages qualified as “bundled transaction” resulting in theCompany’s loss of control
In case of “bundled transaction”, stages as a whole are considered as one transaction resulting in loss of control in accounting treatment. Before the Company loses control, the difference between the disposal consideration at each stage and the proportionate share of net assets in the disposed subsidiary is recognized as other comprehensive income at the consolidated financial statements and reclassified as profit or loss in the period when the Company loses control over such subsidiary.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 (XV) Investment property
1. Investment property includes land use right of rent-out property and of property held for capital appreciation and buildings that have been leased out.
2. The initial measurement of investment property is based on its cost, and subsequent measurement is made using the cost model, the depreciation or amortization method is the same as that of fixed assets and intangible assets.
(XVI) Fixed assets
1. Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and expected to be used during more than one accounting year. Fixed assets are recognized if, and only if, it is probable that future economic benefits associated with the assets will flow to the Company and the cost of the assets can be measured reliably. 2. Depreciation method of different categories of fixed assets
||||
|-|-|-|
|Depreciation method2|Useful life(years)|Estimatedresidualvalueproportion(%)|
|straight-line method|15-35|3.00|
|straight-line method|10-15|3.00|
|straight-line method|6-8|3.00|
|straight-line method|4-11|3.00|
|straight-line method|4-11|3.00|

(XVII) Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic benefits associated with the item will flow to the Company, and the cost of the item can be measured reliably. Construction in progress is measured at the actual cost incurred to reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches its designed usable conditions. When the construction completion cost reaches final estimating and auditing of the construction in progress was not finished while it reaching the designed usable conditions, it is transferred to fixed assets using estimated value first, and then adjusted accordingly when the actual cost is settled, but the accumulated depreciation is not to be adjusted retrospectively.
(XVIII) Borrowing costs
1. Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of assets eligible for capitalization, it is capitalized and included in the costs of relevant assets; other borrowing costs are recognized as expenses on the basis of the actual amount incurred, and are included in profit or loss.
2. Borrowing costs capitalization period
(1) The borrowing costs are not capitalized unless they following requirements are all met: 1) the asset disbursements
2Methods include straight-line method, unit-of-production method, double-declining-balance method, sum-of-the-years-digits method,
as well as other methods.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 have already incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or production activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs is suspended; the borrowing costs incurred during such period are recognized as expenses, and are included in profit or loss, till the acquisition and construction or production of the asset restarts.
(3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of the borrowing costs is ceased.
3. Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization, the to-be-capitalized amount of interests is determined in light of the actual interest expenses incurred (including amortization of premium or discount based on effective interest method) of the special borrowings at the present period minus the income of interests earned on the unused borrowings as a deposit in the bank or as a temporary investment; where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the Company calculates and determines the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the capitalization rate of the general borrowing used.
(XIX) Intangible assets
1. Intangible asset includes land use right, patent right and non-patented technology etc. The initial measurement of intangible asset is based its cost.
2. For intangible assets with finite useful lives, its amortization amount is amortized within its useful lives systematically and reasonably, if it is unable to determine the expected realization pattern reliably, intangible assets are amortized by the straight-line method with details as follows:
Items Amortization period (years)
Software 3-10
Patent right and non-patented technology 5-10
Land use right 40-50
3. Expenditures on the research phase of an internal project are recognized as profit or loss when it is incurred. An intangible asset arising from the development phase of an internal project is recognized if the Company can demonstrate all of the following: (1) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) its intention to complete the intangible asset and use or sell it; (3) how the intangible asset will generate probable future economic benefits. Among other things, the Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; (4) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and (5) its ability to measure reliably the expenditure attributable to the intangible asset during its development.
(XX) Impairment of part of non-current assets
For non-current assets such as long-term equity investments, investment property at cost model, fixed assets,
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 construction in progress, intangible assets with finite useful life, etc., if at the balance sheet date there is indication of impairment, the recoverable amount is estimated. For goodwill recognized in business combination and intangible assets with indefinite useful life, no matter whether there is indication of impairment, impairment test is performed annually. Impairment test on goodwill is performed on related group of assets or a portfolio of groups of assets. When the recoverable amount of such non-current assets is lower than their carrying amount, the difference is recognized as assets impairment loss through profit or loss.
(XXI) Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year (excluding one year). They are recorded with actual cost, and evenly amortized within its beneficiary period or stipulated period. If items of long-term prepayments fail to be beneficial to the following accounting periods, residual values of such items are included in profit or loss. (XXII) Employee benefits
1. Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-term employee benefits.
2. Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, short-term employee benefits actually incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
3. Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution payable to a defined contribution plan as a liability, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
1) In accordance with the projected unit credit method, using unbiased and mutually compatible actuarial assumptions to estimate related demographic variables and financial variables, measure the obligations under the defined benefit plan, and determine the periods to which the obligations are attributed. The Company discounts obligations under the defined benefit plan using the discount rate to determine the present value of the defined benefit plan obligations and the current service cost;
2) When a defined benefit plan has assets, the Company recognizes the deficit or surplus by deducting the present value of the defined benefit plan obligation from the fair value of defined benefit plan assets as a net defined benefit plan liability or net defined benefit plan asset. When a defined benefit plan has a surplus, the Company measures the net defined benefit plan asset at the lower of the surplus in the defined benefit plan and the asset ceiling;
3) At the end of reporting period, the Company recognizes the following components of employee benefits cost arising from defined benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c. Changes as a result of re-measurement of the net defined benefit liability (asset). Item a and item b are recognized in profit or loss or the cost of a relevant asset. Item c is recognized in other comprehensive income and is not to be reclassified subsequently to profit or loss. However, the Company may transfer those amounts recognized in other comprehensive income within equity.
4. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination benefits, with a corresponding charge to profit or loss at the earlier of the following dates: a. when the Company cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a curtailment proposal; or b. when the Company
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 recognizes cost or expenses related to a restructuring that involves the payment of termination benefits.
5. Other long-term employee benefits
When other long-term employee benefits provided by the Company to the employees satisfied the conditions for classifying as a defined contribution plan, those benefits are accounted for in accordance with the requirements relating to defined contribution plan. The Company recognizes and measures the net liability or net asset of other long-term employee benefits in accordance with the requirements relation to defined benefit plan. At the end of the reporting period, the Company recognizes the components of cost of employee benefits arising from other long-term employee benefits as the followings: a. service cost; b. net interest on the net liability or net assets of other long-term employee benefits; and c. changes as a result of re-measurement of the net liability or net assets of other long-term employee benefits. As a practical expedient, the net total of the aforesaid amounts are recognized in profit or loss or included in the cost of a relevant asset.
(XXIII) Provisions
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as providing guarantee for other parties, litigation, products quality guarantee, onerous contract, etc., may cause the outflow of the economic benefit and such obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling the present obligations, and its carrying amount is reviewed at the balance sheet date.
(XXIV) Revenue
1. Revenue recognition principles
(1) Sale of goods
Revenue from sale of goods is recognized if, and only if, the following conditions are all satisfied: a) significant risks and rewards of ownership of the goods is transferred to the buyer; b) the Company retains neither continuing managerial involvement of ownership nor effective control over the goods sold; c) the amount of revenue can be measured reliably; d) it is probable that the economic benefits of the transaction will flow to the Company; and e) the costs of the transaction incurred and to be incurred can be measured reliably.
(2) Rendering of services
When the outcome of the transaction can be estimated reliably (the amount of revenue can be measured reliably, it is probable that the economic benefits will flow to the Company, the percentage of completion of the transaction can be determined reliably, and the costs of the transaction incurred and to be incurred can be measured reliably), revenue from rendering of services is recognized using the percentage of completion method, and the stage of completion is determined at the proportion of costs incurred to the estimated total costs. When the outcome of the transaction cannot be estimated reliably at the balance sheet date, revenue is recognized based on the amount of the costs incurred and the costs incurred are charged off at the same amount when the costs incurred are expected to be recoverable; and no revenue is recognized and the costs incurred are charged off as an expense of the period when the costs incurred are not expected to be recovered.
(3) Revenue arising from use by others of assets
Revenue arising from use by others of assets is recognized if, and only if, it is probable that economic benefits associated with the transaction will flow to the Company and the amount of the revenue can be measured reliably. Interest income is recognized based on the length of time for which theCompany’s cash is used by others and the
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 effective interest rate; and royalties are recognized according to the period and method of charging as specified in relevant contract or agreement.
2. Revenue recognition method adopted by the Company
TheCompany’s main product is the telecommunication product. Revenue is recognized if, and only if, the following conditions are all met: the Company has delivered goods to the purchaser based on contractual agreements; customers have accepted goods and settled the payment; goods payment has been collected or the Company has obtained receipts invoices and it is probable that economic benefits associated with the transaction will flow to the Company; and the costs of the transaction incurred and to be incurred can be measured reliably.
(XXV) Government grants
1. Government grants related to assets
Government grants related to assets are government grants, with which the Company purchase, construct or otherwise acquire non-current assets. They are recognized as deferred income, and amortized on a straight-line method over the useful lives of the relevant assets, and included in profit or loss. However, those measured at notional amount is directly included into profit or loss. 2. Government grants related to income
Government grants related to income are government grants other than those related to assets. Government grants related to income if used for compensating the related future expenses or losses of the Company are recognized as deferred income and are included in profit or loss during the period when the relevant expenses are recognized; if used for compensating the related expenses or losses incurred to the Company are directly included in profit or loss.
(XXVI) Operating leases
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line method over the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged as profit or loss in the periods in which they are incurred.
When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over the lease term. Initial expenses, other than those with material amount and eligible for capitalization which are recognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are charged into profit or loss in the periods in which they are incurred.
IV. Taxes
(I) Main taxes and tax rates
||
|-|
|Tax bases|
|The taxable revenue from sales of goods orrendering of services|
|The taxable business turnover|
|Turnover tax payable|
|Turnover tax payable|
|Turnover tax payable|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Enterprise income tax Taxable income 15%-25%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
Nanjing Putian Telege Intelligent Building Ltd. 15%
南京普天长乐通信设备有限公司
15%
(Nanjing Putian Changle Telecommunications Equipment Co.,
Ltd.3)
南京普天大唐信息电子有限公司
15%
(Nanjing Putian Datang Information Electronic Co.,
Ltd.4)
南京普天网络有限公司
15%
(Nanjing Putian Network CompanyLtd.*)
南京普天通信科技有限公司 15%
(Nanjing Putian Telecommunication Technology CompanyLtd.*)
普天通信（香港）股份有限公司
16.5%
(Putian Telecommunications (H.K.) Co.,Ltd.*)
Taxpayers other than the above-mentioned 25%
Subsidiary, Putian Telecommunications (H.K.) Co., Ltd., was established in Hong Kong on 1 December 2000, and is subject to the Enterprise Income Tax at a rate of16.5%, according to relevant rules in Hong Kong.
(II) Tax preferential policies
The subsidiaries, Nanjing Putian Telege Intelligent Building Ltd., Nanjing Putian Changle Telecommunications Equipment Co., Ltd., Nanjing Putian Network Company Ltd. and Nanjing Putian Datang Information Electronic Co., Ltd., recognised as high-tech enterprises, are subject to the enterprise income tax at a reduced rate of 15%.
The subsidiary,南京通信设备厂七分厂(Nanjing Telecommunication Equipment Factory- the SevenBranch*), is a social welfare enterprise. Accordance to the provisions of GSF (2007) No.067, it enjoys the preferential tax policy of value-added tax levied immediately returned and the disabledpeople’s wage deduction.
The subsidiaries, Nanjing Putian Datang Information Electronic Co., Ltd. and Nanjing Putian Telecommunication Technology Company Ltd., which were recognised as software enterprises, and some software products produced by Nanjing South Telecommunications Company Limited and Nanjing Putian Network Company Ltd., enjoy the preferential tax policy of value-added tax levied immediately returned with the provisions of CS(2011) No.100. V. Notes to items of consolidated financial statements
(I) Notes to items of the consolidated balance sheet
1. Cash and bank balances
(1) Details
||
|-|
|Closing balance|
|11,991.67|
|246,397,399.85|

3 The English names are for identification purpose only.
4 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||
|-|
|48,381,421.04|
|294,790,812.56|

(2) Other remarks
Other cash and bank balances include the acceptance deposit and the letter of guarantee deposit. The acceptance deposit amounts to 47,608,046.04 yuan and the letter of guarantee deposit amounts to 773,375.00 yuan.
2. Notes receivable
(1) Details
||||||
|-|-|-|-|-|
|Closing balance|||||
|Book balance|Provision forbad debts|Carryingamount|Book balance|Provision forbad debts|
|17,486,855.55||17,486,855.55|26,318,796.40||
|4,917,513.60||4,917,513.60|6,021,033.32||
|22,404,369.15||22,404,369.15|32,339,829.72||

(2) Endorsed or discounted but undue notes at the balance sheet date
||
|-|
|Closing balance derecognized|
|19,595,791.68|
|6,780,360.44|
|26,376,152.12|

Due to the fact that the acceptor of bank acceptance is commercial bank, which is of high credit level, there is very little possibility of failure in recoverability when it is due. Based on this fact, the Company derecognized the endorsed or discounted bank acceptance. However, if any bank acceptance is not recoverable when it is due, the Company still holds joint liability on such acceptance, according to the China Commercial Instrument Law.
3. Accounts receivable
(1) Details
1) Details of different categories of accounts receivable
Closing balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Provisionproportion(%)|
|945,939,511.21|99.03|24,111,287.25|2.55|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Provisionproportion(%)|
|945,939,511.21|99.03|24,111,287.25|2.55|
|9,224,153.54|0.97|9,224,153.54|100.00|
|955,163,664.75|100.00|33,335,440.79|3.49|

(Continued)
Opening balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Provisionproportion(%)|
|800,746,638.81|98.84|22,694,181.97|2.83|
|800,746,638.81|98.84|22,694,181.97|2.83|
|9,360,326.66|1.16|9,360,326.66|100.00|
|810,106,965.47|100.00|32,054,508.63|3.96|

2) In portfolios, accounts receivable with provision made on a collective basis with age analysis method
Closing balance
Ages
|||
|-|-|
|Book balance|Provision for bad debts|
|726,030,236.37||
|132,184,207.82||
|42,305,980.97|4,231,458.96|
|19,018,446.35|5,705,533.90|
|19,282,341.21|7,712,936.48|
|3,284,702.91|2,627,762.33|
|3,833,595.58|3,833,595.58|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||
|-|-|
|945,939,511.21|24,111,287.25|

(2) Provisions made, collected or reversed in current period
Provision for bad debts made in current period totaled 1,179,359.42 yuan, and provision for bad debts resulting from the fluctuations in exchange was 101,572.74 yuan.
(3) Details of the top 5 debtors with largest balances
|||
|-|-|
|Book balance|Proportion to thetotal balance ofaccountsreceivable (%)|
|79,237,019.19|8.30|
|34,081,649.21|3.57|
|21,400,715.00|2.24|
|18,511,058.00|1.94|
|14,613,453.72|1.53|
|167,843,895.12|17.57|

4. Advances paid
(1) Age analysis
1) Details of ages
Closing balance
Ages
||||
|-|-|-|
|Book balance|Proportion (%)|Provision for baddebts|
|35,999,856.11|73.63||
|4,892,864.21|10.01||
|1,479,418.49|3.03||
|6,518,695.23|13.33||
|48,890,834.04|100.00||

(Continued)
Opening balance
Ages
||||
|-|-|-|
|Book balance|Proportion (%)|Provision for baddebts|
|27,593,783.68|75.20||
|2,549,193.53|6.95||
|2,540,818.11|6.92||

5 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Opening balance
Ages
||||
|-|-|-|
|Book balance|Proportion (%)|Provision for baddebts|
|4,008,533.75|10.93||
|36,692,329.07|100.00||

2) Reasons for unsettlement on advances paid with age over one year and significant amount
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||
|-|
|Closing balance|
|881,505.00|
|500,000.00|
|300,000.00|
|130,586.36|
|1,812,091.36|

(2) Details of the top 5 debtors with largest balances
||
|-|
|Book balance|
|6,439,654.93|
|4,362,603.47|
|1,338,399.78|
|1,100,000.00|
|960,675.92|
|14,201,334.10|

5. Other receivables
(1) Details
1) Details on categories
Closing balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion (%)|Amount|Provisionproportion (%)|
|28,912,122.71|37.26|28,912,122.71|100.00|
|48,685,965.19|62.74|5,483,188.84|11.26|

6 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion (%)|Amount|Provisionproportion (%)|
|48,685,965.19|62.74|5,483,188.84|11.26|
|77,598,087.90|100.00|34,395,311.55|44.32|

(Continued)
Opening balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion (%)|Amount|Provisionproportion (%)|
|28,912,122.71|43.68|28,912,122.71|100.00|
|37,273,475.89|56.32|5,038,904.67|13.52|
|37,273,475.89|56.32|5,038,904.67|13.52|
|66,185,598.60|100.00|33,951,027.38|51.30|

2) Other receivables of individually significant amount and with provision made on an individual basis
||||
|-|-|-|
|Book balance|Provision for baddebts|Provisionproportion (%)|
|28,912,122.71|28,912,122.71|100.00|
|28,912,122.71|28,912,122.71|100.00|

3) In portfolios, other receivables with provision made on a collective basis with age analysis method
Closing balance
Ages
|||
|-|-|
|Book balance|Provision for bad debts|
|27,590,195.28||

7 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance
Ages
|||
|-|-|
|Book balance|Provision for bad debts|
|10,859,015.07||
|3,339,255.86|333,925.59|
|912,454.29|273,736.29|
|1,718,889.59|687,555.84|
|390,919.92|312,735.94|
|3,875,235.18|3,875,235.18|
|48,685,965.19|5,483,188.84|

(2) Provisions made, collected or reversed in current period
Provision for bad debts made in current period totaled 440,367.21 yuan, and provision for bad debts resulting from the fluctuations in exchange was 3,916.96 yuan.
(3) Other receivables categorized by nature
||
|-|
|Closing balance|
|1,468,494.69|
|30,802,877.77|
|43,147,623.74|
|2,179,091.70|
|77,598,087.90|

(4) Details of the top 5 debtors with largest balances
|||||
|-|-|-|-|
|Nature ofreceivables|Book balance|Age|Proportion to thetotal balance ofother receivables(%)|
|Temporaryadvance paymentreceivable|28,912,122.71|Over 6years|37.26|
|Deposit assecurity|4,784,198.21|0-2 years|6.17|
|Deposit assecurity|3,200,000.00|0-3 years|4.12|
|Deposit assecurity|1,050,000.00|2-3 years|1.35|
|Deposit as|630,000.00|3-6 years|0.81|

8 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||
|-|-|-|-|
|Nature ofreceivables|Book balance|Age|Proportion to thetotal balance ofother receivables(%)|
|security||||
||38,576,320.92||49.71|

6. Inventories
(1) Details
||||||
|-|-|-|-|-|
|Closing balance|||||
|Book balance|Provision forwrite-down|Carrying amount|Book balance|Provision forwrite-down|
|40,709,778.73|2,076,580.88|38,633,197.85|32,490,746.73|2,076,580.88|
|18,934,374.01||18,934,374.01|16,876,174.05||
|332,601,905.77|6,565,536.77|326,036,369.00|350,154,616.50|6,943,495.24|
|392,246,058.51|8,642,117.65|383,603,940.86|399,521,537.28|9,020,076.12|

(2) Provision for inventory write-down
1) Details
||||||
|-|-|-|-|-|
|Opening balance|Increase||Decrease||
||Provision|Others|Reversal orwritten-off|Others|
|2,076,580.88|||||
|6,943,495.24|||377,958.47||
|9,020,076.12|||377,958.47||

2) Determination basis of net realizable value and reasons for the reversal or written-off of provision for inventory write-down The detailed basis of net realizable value refers to the Notes XII of financial statements, the written-off of provision for inventory is the amount of 377,958.47 yuan which is reversed by the parent company, Nanjing Putian Telecommunications Co., Ltd., as the goods on hand related to the written-off were sold in the current period.
7. Other current assets
||
|-|
|Closing balance|
|7,381,077.56|
|7,381,077.56|

8. Available-for-sale financial assets
(1) Details
Items Closing balance Opening balance
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||
|-|-|-|-|-|
|Bookbalance|Provisionforimpairment|Carryingamount|Bookbalance|Provision forimpairment|
|2,596,863.00|1,854,910.00|741,953.00|2,596,863.00|1,854,910.00|
|2,596,863.00|1,854,910.00|741,953.00|2,596,863.00|1,854,910.00|

(2) Available-for-sale financial assets at cost
Book balance
Investees
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|420,915.00|||
|321,038.00|||
|1,854,910.00|||
|2,596,863.00|||

(Continue)
||||||
|-|-|-|-|-|
|Provision for impairment||||Holdingproportion ininvestees (%)|
|Opening balance|Increase|Decrease|Closing balance||
|||||10.00|
|||||2.26|
|1,854,910.00|||1,854,910.00|51.00|
|1,854,910.00|||1,854,910.00||

9. Long-term equity investments
(1) Categories
||||||
|-|-|-|-|-|
|Closing balance|||||
|Book balance|Provision forimpairment|Carryingamount|Book balance|Provisionforimpairment|
|172,763,005.18||172,763,005.18|172,315,120.86||
|13,650,707.80||13,650,707.80|13,543,120.01||
|186,413,712.98||186,413,712.98|185,858,240.87||

9 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
(2) Details
|||||
|-|-|-|-|
|Opening balance||||
||Investmentsincreased|Investmentsdecreased|Investment incomerecognized underequity method|
|13,543,120.01|||107,587.79|
|13,543,120.01|||107,587.79|
|2,610,405.50|||156,994.58|
|169,704,715.36|||653,261.74|
|172,315,120.86|||810,256.32|
|185,858,240.87|||917,844.11|

(Continued)
10 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||
|-|-|-|-|-|
|Increase/decrease||||Closing balance|
|Changes inother equity|Cash dividend/profitdeclared fordistribution|Provision forimpairment|Others||
|||||13,650,707.80|
|||||13,650,707.80|
|||||2,767,400.08|
||362,372.00|||169,995,605.10|
||362,372.00|||172,763,005.18|
||362,372.00|||186,413,712.98|

10. Investment property
|||
|-|-|
|Buildings and structures|Land use right|
|43,969,211.75|3,642,147.87|
|43,969,211.75|3,642,147.87|
|13,167,768.42|1,524,652.59|
|554,276.35|59,980.32|
|554,276.35|59,980.32|
|13,722,044.77|1,584,632.91|
|1,842,418.00||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||
|-|-|
|Buildings and structures|Land use right|
|1,842,418.00||
|28,404,748.98|2,057,514.96|
|28,959,025.33|2,117,495.28|

11. Fixed assets
(1) Details
|||||||
|-|-|-|-|-|-|
|Buildings andstructures|Machineryequipment|Transportfacilities|Electronicequipment|Officefacilities|Otherequipment|
|100,029,285.03|81,641,941.65|14,809,904.11|6,510,774.15|10,576,423.02|37,843,194.69|
||181,656.55||559,358.99|248,682.88|81,605.72|
||181,656.55||559,358.99|248,682.88|81,605.72|
||226,000.00|52,264.96|93,180.08|97,130.00|239,543.75|
||226,000.00|52,264.96|93,180.08|97,130.00|239,543.75|
|100,029,285.03|81,597,598.20|14,757,639.15|6,976,953.06|10,727,975.90|37,685,256.66|
|40,596,838.62|69,291,773.95|12,413,951.03|5,383,073.98|9,032,496.10|32,758,468.11|
|1,797,146.29|1,066,784.46|470,470.00|396,679.75|317,232.72|497,418.93|
|1,797,146.29|1,066,784.46|470,470.00|396,679.75|317,232.72|497,418.93|
||219,220.00|50,697.01|89,839.46|97,130.00|232,357.44|
||219,220.00|50,697.01|89,839.46|97,130.00|232,357.44|
|42,393,984.91|70,139,338.41|12,833,724.02|5,689,914.27|9,252,598.82|33,023,529.60|
|539,124.00|573,461.78||847,107.16|92,064.43|307,895.29|
|539,124.00|573,461.78||847,107.16|92,064.43|307,895.29|
|57,096,176.12|10,884,798.01|1,923,915.13|439,931.63|1,383,312.65|4,353,831.77|
|58,893,322.41|11,776,705.92|2,395,953.08|280,593.01|1,451,862.49|4,776,831.29|

(2) Fixed assets temporarily idle
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||
|-|-|-|-|
|Cost|Accumulateddepreciation|Provision forimpairment|Carryingamount|
|2,656,590.39|1,712,884.34|930,089.05|13,617.00|
|601,241.55|286,357.39|296,846.94|18,037.22|
|3,257,831.94|1,999,241.73|1,226,935.99|31,654.22|

(3) Fixed assets with certificate of titles being unsettled
||
|-|
|Carrying amount|
|14,184,381.40|
|813,306.79|
|1,184,757.46|
|16,182,445.65|

12. Construction in progress
(1) Details
||||||
|-|-|-|-|-|
|Closing balance|||||
|Book balance|Provisionforimpairment|Carryingamount|Book balance|Provisionforimpairment|
|26,189,211.24||26,189,211.24|25,725,972.29||
||||58,800.00||
||||470,000.00||
|274,920.00||274,920.00|274,920.00||
|100,000.00||100,000.00|100,000.00||

Total 26,564,131.24 26,564,131.24 26,629,692.29 26,629,692.29
(2) Changes in significant projects
Projects Budgets Opening balance Increase Transferred to Other Closing balance
fixed assets decrease
Yuhua Venture 56,835,000.00 25,725,972.29 463,238.95 26,189,211.24
park
Cable Building 500,000.00 470,000.00 470,000.00
Renovation
Cable 58,800.00 58,800.00
Air-condition
Wiring
Yuhuatai Road 274,920.00 274,920.00
Station Road
connection fee
Intelligent 228,000.00 100,000.00 100,000.00
Building the East
Gate
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Subtotal 57,563,000.00 26,629,692.29 463,238.95 528,800.00 26,564,131.24
(Continued)
||||||
|-|-|-|-|-|
|Accumulatedinvestment tobudget|Completionpercentage(%)|Accumulatedamount ofborrowing costcapitalization|Amount ofborrowing costcapitalization incurrent period|Annualcapitalization rate (%)|
|46.08|46.00||||
|94.00|100.00||||
|205.86|99.00||||

13. Intangible assets
|||||
|-|-|-|-|
|Software|Land use right|Patent right|Non-patenttechnology|
|9,877,688.62|29,924,994.74|607,500.00|4,560,000.00|
|9,877,688.62|29,924,994.74|607,500.00|4,560,000.00|
|7,973,905.12|4,629,716.19|607,500.00|4,560,000.00|
|226,952.70|357,405.35|||
|226,952.70|357,405.35|||
|8,200,857.82|4,987,121.54|607,500.00|4,560,000.00|
|1,676,830.80|24,937,873.20|||
|1,903,783.50|25,295,278.55|||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 14. Long-term prepayments
|||||
|-|-|-|-|
|Opening balance|Increase|Amortization|Otherdecreases|
|650,627.99||36,828.00||
|1,329,881.53|528,800.00|223,119.57||
|90,408.80|21,509.43|27,720.10||
|2,070,918.32|550,309.43|287,667.67||

15. Short-term borrowings
(1) Details
||
|-|
|Closing balance|
|60,000,000.00|
|59,500,000.00|
|295,000,000.00|
|414,500,000.00|

(2) Other remarks
The pledge borrowing of RMB 60 million represents the borrowing from Jiangning Branch of Bank of Beijing to the Company with China Potevio Company Limited acting as pledgee. The Company pledged the share right of Nanjing South Telecommunications Company Limited, Nanjing Putian Changle Telecommunications Equipment Co., Ltd.,南京普天王之电子有限公司(Nanjing Postel Wongzhi Telecommunications Co., Ltd.11), Nanjing Putian Network Company Ltd. to China Potevio Company Limited, and registered the equity pledge with Nanjing Jiangning Market Supervision Administration on 8 July 2016.
16. Notes payable
||
|-|
|Closing balance|
|55,511,550.00|
|72,000,000.00|
|127,511,550.00|

17. Accounts payable
(1) Details
||
|-|
|Closing balance|
|945,828,389.61|
|208,600.36|
|946,036,989.97|

(2) Significant accounts payable with age over one year
11 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||
|-|
|Closing balance|
|12,112,160.00|
|1,308,253.00|
|1,396,269.89|
|2,320,444.61|
|1,009,952.48|
|1,011,000.00|
|1,050,000.00|
|1,323,706.00|
|3,173,773.30|
|1,645,992.90|
|1,292,866.87|
|2,188,147.65|
|29,832,566.70|

18. Advances received
(1) Details
||
|-|
|Closing balance|
|80,165,899.92|
|80,165,899.92|

(2) Significant advances received with age over one year
||
|-|
|Closing balance|
|8,158,434.00|
|8,158,434.00|

19. Employee benefits payable
(1) Details
12 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|17,678,666.86|113,336,083.88|114,391,585.42|
||10,506,171.47|10,506,171.47|
||75,554.80|75,554.80|
|17,678,666.86|123,917,810.15|124,973,311.69|

(2) Details of short-term employee benefits
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|11,834,231.59|94,832,733.63|95,890,097.82|
||6,595,367.05|6,288,833.47|
||6,689,105.61|6,689,105.61|
||6,163,082.56|6,163,082.56|
||296,234.31|296,234.31|
||229,788.74|229,788.74|
|80,179.29|4,627,956.07|4,627,956.07|
|5,764,255.98|590,921.52|895,592.45|
|17,678,666.86|113,336,083.88|114,391,585.42|

(3) Details of defined benefit plan
||||
|-|-|-|
|Opening balance|Increase|Decrease|
||10,006,089.28|10,006,089.28|
||137,497.88|137,497.88|
||362,584.31|362,584.31|
||10,506,171.47|10,506,171.47|

20. Taxes and rates payable
||
|-|
|Closing balance|
|10,946,127.29|
|8,482.01|
|2,432,214.61|
|1,116,548.71|
|110,905.27|
|48,004.38|
|327,007.82|
|531,721.64|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||
|-|
|263,207.02|
|4,071.11|
|15,788,289.86|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 21. Interest payable
||
|-|
|Closing balance|
|562,892.07|
|562,892.07|

22. Dividend payable
(1) Details
||
|-|
|Closing balance|
|1,692,213.38|
|1,692,213.38|

(2) Significant dividend payable with age over one year
|||
|-|-|
|Closing balance|Opening balance|
|253,832.01|253,832.01|
|423,053.34|423,053.34|
|253,832.01|253,832.01|
|84,610.67|84,610.67|
|423,053.34|423,053.34|
|253,832.01|253,832.01|
|1,692,213.38|1,692,213.38|

23. Other payables
||
|-|
|Closing balance|
|6,856,470.73|
|6,994,007.47|
|13,913,417.04|
|2,881,117.13|
|1,821,694.38|
|32,466,706.75|

13 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 24. Long-term payable
||
|-|
|Closing balance|
|80,118.00|
|80,118.00|

25. Deferred income
(1) Details
|||||
|-|-|-|-|
|Opening balance|Increase|Decrease|Closing balance|
|1,525,537.98||1,001,167.82|524,370.16|
|1,525,537.98||1,001,167.82|524,370.16|

(2) Details of government grants
Items Opening Increase Included in Other Closing Related to
balance non-operating movement balance assets/inco
revenue in s me
current period
||||
|-|-|-|
|1,525,537.98|1,001,167.82|524,370.16|
|1,525,537.98|1,001,167.82|524,370.16|

(3) Other remarks
The balance amount of government grant related to income will be carried forward to non-operation income when it actually occurs. 26. Share capital
|||||||
|-|-|-|-|-|-|
|Opening balance|Movements|||||
||Issue ofnewshares|Bonusshares|Reservetransferred toshares|Others|Subtotal|
|215,000,000.00||||||

27. Capital reserve
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|139,592,332.04|||
|45,782,201.81|||
|185,374,533.85|||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 28. Other comprehensive income (OCI)
|||||||
|-|-|-|-|-|-|
|Opening balance|Current period cumulative|||||
||Current periodcumulativebefore incometax|Less: OCIcarriedforwardtransferredto profit orloss|Less:incometax|Attributable toparentcompany|Attributable tonon-controlling interest|
|-4,223,184.69|-241,817.20|||-217,635.48|-24,181.72|
|-4,223,184.69|-241,817.20|||-217,635.48|-24,181.72|
|-4,223,184.69|-241,817.20|||-217,635.48|-24,181.72|

 29. Surplus reserve
||||
|-|-|-|
|Opening balance|Increase|Decrease|
|589,559.77|||
|589,559.77|||

30. Undistributed profit
||
|-|
|Current periodcumulative|
|-50,056,514.64|
|-50,056,514.64|
|-21,109,095.63|
|-71,165,610.27|

(II) Notes to items of the consolidated income statement
1. Operating revenue/cost
||||
|-|-|-|
|Current period cumulative|||
|Income|Cost|Income|
|799,290,563.30|654,441,609.66|878,590,045.39|
|35,448,660.17|31,732,039.36|41,701,286.22|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||
|-|-|-|
|834,739,223.47|686,173,649.02|920,291,331.61|

2. Taxes and surcharge for operations
||
|-|
|Current period cumulative|
|245,668.85|
|1,735,641.31|
|2,405,871.95|
|551.18|
|4,387,733.29|

3. Selling expenses
||
|-|
|Current period cumulative|
|35,332,445.32|
|11,552,284.70|
|8,326,482.17|
|11,088,298.50|
|5,423,780.26|
|1,292,444.62|
|1,235,935.02|
|951,066.49|
|496,036.48|
|4,775,944.92|
|80,474,718.48|

4. Administrative expenses
||
|-|
|Current period cumulative|
|19,328,181.10|
|32,935,519.58|
|3,763,281.11|
|1,887,533.90|
|2,730,509.81|
|696,820.56|
|1,151,560.97|
|2,259,364.57|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||
|-|
|Current period cumulative|
|1,117,969.85|
|3,642,370.65|
|69,513,112.10|

5. Financial expenses
||
|-|
|Current period cumulative|
|12,437,759.85|
|1,393,645.72|
|99,659.27|
|68,383.33|
|172,552.89|
|11,247,942.96|

6. Assets impairment loss
||
|-|
|Current period cumulative|
|1,619,726.63|
|1,619,726.63|

7. Investment income
||
|-|
|Current period cumulative|
|917,844.11|
|917,844.11|

8. Non-operating revenue
|||
|-|-|
|Current periodcumulative|Preceding periodcomparative|
|30,429.96|910.50|
|30,429.96|910.50|
||173.00|
|3,531,664.76|2,862,726.34|
|302,562.55|203,798.67|
|3,864,657.27|3,067,608.51|

(2) Government grants
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||
|-|-|
|Current periodcumulative|Preceding periodcomparative|
|2,320,477.29|1,930,226.34|
||9,700.00|
|205,619.65|922,800.00|
|1,001,167.82||
|2,400.00||
|2,000.00||
|3,531,664.76|2,862,726.34|

9. Non-operating expenditures
|||
|-|-|
|Current periodcumulative|Preceding periodcomparative|
|16,712.60|44,708.03|
|16,712.60|44,708.03|
|10,000.00||
|25,051.31|764.21|
|29,639.65|31,808.15|
|81,403.56|77,280.39|

10. Income tax expenses
(1) Details
||
|-|
|Current period cumulative|
|3,235,803.32|
|3,235,803.32|

(2) Reconciliation of accounting profit to income tax expenses
Items Current period cumulative
Profit before tax -13,976,561.19
Income tax expenses based on statutory tax rate -3,494,140.30
Effect of different tax rate applicable to subsidiaries -938,358.77
Effect of prior income tax reconciliation -825,982.78
Effect of non-taxable income -213,761.57
Effect of non-deductible costs, expenses and losses 2,049,748.88
Utilization of deductible losses not previously -28,422.18
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Items Current period cumulative
recognized
Effect of deducible temporary differences or
6,594,688.53
deductible losses not recognized
Evaluation of value added 92,031.50
Income tax expenses 3,235,803.32
11. Other comprehensive income, net of income tax
Please refer to notes to other comprehensive income for details.
(III) Notes to items of the consolidated cash flow statement
1. Other cash receipts related to operating activities
||
|-|
|Current period cumulative|
|210,019.65|
|1,393,645.72|
|45,346,412.20|
|790,470.45|
|47,740,548.02|

2. Other cash payments related to operating activities
||
|-|
|Current period cumulative|
|54,374,593.08|
|66,739,004.42|
|146,935.30|
|121,260,532.80|

3. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
||
|-|
|Current periodcumulative|
|-17,212,364.51|
|1,725,216.33|
|5,159,988.82|
|584,358.05|
|287,667.67|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||
|-|
|Current periodcumulative|
|-13,717.36|
|12,469,035.79|
|-917,844.11|
|6,897,520.30|
|-153,899,907.08|
|48,338,635.21|
|-96,581,410.89|
|246,409,391.52|
|405,920,943.68|
|-159,511,552.16|

(2) Cash and cash equivalents
||
|-|
|Closing balance|
|246,409,391.52|
|11,991.67|
|246,397,399.85|
|246,409,391.52|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Including: Cash and cash equivalents of parent company or
48,381,421.04 56,038,240.66
subsidiaries with use restrictions
(3) Other remarks
Cash and cash equivalents exclude acceptance deposit and the letter of guarantee deposit with use restrictions. The closing balance was RMB48,381,421.04 and the opening balance was RMB56,038,240.66.
(IV) Others
1. Assets with title or use right restrictions
||
|-|
|Closing carrying amount|
|48,381,421.04|
|20,597,889.86|
|34,589,302.45|
|8,020,386.30|
|111,588,999.65|

2. Monetary items in foreign currencies
|||
|-|-|
|Closing balance inforeign currencies|Exchange rate|
|1,801,692.24||
|1,121,546.91|6.6312|
|678,282.24|0.8547|
|1,654.30|7.3750|
|208.79|8.9212|
|19,936.48||
|19,936.48|6.6312|
|1,647,642.38||
|1,647,642.38|0.8547|

VI. Interest in other entities
(I) Equity in significant subsidiaries
1. Significant subsidiaries
(1) Basis information
||||||
|-|-|-|-|-|
|Mainoperatingplace|Place ofregistration|Businessnature|Holdingproportion (%)||
||||Direct|Indirect|

Nanjing South Nanjing Nanjing Manufacture 96.99 1.38 Found
Telecommunications
City City
Company Limited
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||
|-|-|-|-|-|
|Mainoperatingplace|Place ofregistration|Businessnature|Holdingproportion (%)||
||||Direct|Indirect|
|NanjingCity|NanjingCity|Manufacture|75.00||
|NanjingCity|NanjingCity|Manufacture|45.767||
|NanjingCity|NanjingCity|Manufacture|50.70||

Nanjing Putian Datang Nanjing Nanjing Manufacture 40.00 Found
Information Electronic Co.,
City City
Ltd.
(2) Other remarks
1) Remarks on inconsistency between holding proportion owned and voting rights proportion owned in subsidiaries The Company holds40% equity of Nanjing Putian Datang Information Electronic Co., Ltd.. The Company signed the agreement with Yan Yaoming, the shareholder of Nanjing Putian Datang Information Electronic Co., Ltd., to exercise his21% right to vote. The agreement is valid during the period of the existence of Nanjing Putian Datang Information Electronic Co., Ltd.. The Company has61% of the voting right during the existence period of Nanjing Putian Datang Information Electronic Co., Ltd..
2) Basis for the control of an investee while holding its half or less than half voting rights, and the non-control of an investee while holding its more than half voting rights
The Company holds45.767% of voting rights in Nanjing Putian Telege Intelligent Building Ltd., the other voting rights are decentralized. The Company has over half member of the board of directors, could control this company and have a privileged variable return by taking part in thiscompany’s related activity. The Company has the power in this company to impact the amount of return and control this company.
2. Significant not wholly-owned subsidiaries
(1) Details
||||
|-|-|-|
|Holdingproportion ofnon-controllinginterest|Profit or lossattributable tonon-controllinginterest|Dividenddeclared tonon-controllinginterest|
|1.630%|133,236.38||
|25.00%|671,707.30||
|54.233%|4,055,776.40||
|49.30%|-46,521.09||
|60.00%|1,264,721.20||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 3. Main financial information of significant not wholly-owned subsidiaries
(1) Assets and liabilities
Closing balance
Subsidiaries
||||||
|-|-|-|-|-|
|Current assets|Non-currentassets|Total assets|Currentliabilities|Non-currentliabilities|
|394,177,808.64|13,095,075.73|407,272,884.37|251,714,297.26||
|135,498,894.61|34,910,237.58|170,409,132.19|77,019,230.14||
|220,278,539.19|42,013,372.08|262,291,911.27|160,619,148.23||
|92,111,558.46|666,670.28|92,778,228.74|61,843,439.59||
|20,878,816.77|17,257,141.43|38,135,958.20|11,476,875.99||

(Continued)
Opening balance
Subsidiaries
||||||
|-|-|-|-|-|
|Currentassets|Non-currentassets|Total assets|Currentliabilities|Non-currentliabilities|
|402,215,712.54|13,112,421.59|415,328,134.13|267,943,558.27||
|122,428,460.08|35,734,950.22|158,163,410.30|67,460,337.44||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Opening balance
Subsidiaries
||||||
|-|-|-|-|-|
|Currentassets|Non-currentassets|Total assets|Currentliabilities|Non-currentliabilities|
|222,512,145.08|42,752,377.19|265,264,522.27|171,070,188.23||
|100,009,756.08|685,196.11|100,694,952.19|69,665,799.78||
|23,524,932.76|17,964,434.65|41,489,367.41|16,938,153.86||

(2) Profit or loss and cash flows
Current period cumulative
||||
|-|-|-|
|Operatingrevenue|Net profit|Totalcomprehensiveincome|
|246,824,340.55|8,174,011.25|8,174,011.25|
|59,853,154.52|2,686,829.19|2,686,829.19|
|144,073,856.61|7,478,429.00|7,478,429.00|
|30,703,788.91|-94,363.26|-94,363.26|
|21,359,235.76|2,107,868.66|2,107,868.66|

(Continued)
Preceding period comparative
||||
|-|-|-|
|Operatingrevenue|Net profit|Totalcomprehensiveincome|

Nanjing South 299,532,116.68 8,443,845.54 8,443,845.54 -57,455,983.28
Telecommunications
Company Limited
||||
|-|-|-|
|54,737,783.42|1,730,869.91|1,730,869.91|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||
|-|-|-|
|143,733,662.79|5,672,293.79|5,672,293.79|
|45,967,575.10|423,195.56|423,195.56|
|14,668,147.00|1,085,867.91|1,085,867.91|

(II) Equity in joint venture or associates
1. Significant joint ventures or associates
||||||
|-|-|-|-|-|
|Mainoperatingplace|Place ofregistration|Business nature|Holding proportion(%)||
||||Direct|Indirect|
|NanjingCity|NanjingCity|Opticalcommunicationproductsproduction andsale|50.00||
|NanjingCity|NanjingCity|Industrial parkvenue rentalmanagement etc.|49.64||

2. Main financial information of significant joint ventures
Closing balance/current period Opening balance/preceding
Items
cumulative period comparative
SEI-Nanjing Putian Optical Network Co., Ltd.
||
|-|
|46,700,350.99|
|11,063,167.17|
|1,496,794.98|
|48,197,145.97|
|20,895,730.37|
|20,895,730.37|
|27,301,415.60|
|13,650,707.80|
|13,650,707.80|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance/current period Opening balance/preceding
Items
cumulative period comparative
SEI-Nanjing Putian Optical Network Co., Ltd.
||
|-|
|14,260,549.51|
|-280,954.36|
|215,175.59|
|215,175.59|

3. Main financial information of significant associates
Closing balance/current period Opening balance/preceding
Items
cumulative period comparative
Potevio Hi-tech Industry Co., Ltd.
||
|-|
|220,987,928.99|
|129,624,906.20|
|350,612,835.19|
|8,155,935.31|
|8,155,935.31|
|342,456,899.88|
|169,995,605.10|
|169,995,605.10|
|10,061,612.00|
|1,315,998.67|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance/current period Opening balance/preceding
Items
cumulative period comparative
Potevio Hi-tech Industry Co., Ltd.
||
|-|
|1,315,998.67|
|362,372.00|

4. Aggregated financial information of insignificant joint ventures and associates
||
|-|
|Closing balance/currentperiod cumulative|
|2,767,400.08|
|156,994.58|
|156,994.58|

VII. Risks related to financial instruments
The Company aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on theCompany’s financial performance. Based on such objectives, theCompany’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.
The Company has exposure to the following risks from its use of financial instruments, which mainly include: credit risk, liquidity risk, and market risk. Management have deliberated and approved policies concerning such risks, and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.
TheCompany’s credit risk is primarily attributable to bank balances and receivables. In order to control such risks, the Company has taken the following measures:
1. Bank balances
The Company deposits its bank balances in financial institutions with relatively high credit levels, hence, its credit risk is relatively low.
2. Receivables
The Company performs credit assessment on customers who uses credit settlement on a regular basis. The Company selects credible and well-reputed customers based on credit assessment result, and conducts ongoing monitoring on receivables, to avoid significant risks in bad debts.
As theCompany’s credit risks fall into several business partners and customers, as of 30 June 2016,17.57% (31 December 2015:13.92%)
of the total accounts receivable was due from the five largest customers of the Company. The Company has no significant central
credit risk.
(1) Analysis of receivables neither past due nor impaired and receivables past due but not impaired are as follows:
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance
|||||
|-|-|-|-|
|Neither past duenor impaired|Past due but not impaired|||
||Within oneyear|1-2 years|Over 2years|
|22,404,369.15||||
|726,030,236.37||132,184,207.82||
|27,590,195.28||10,859,015.07||
|776,024,800.80||143,043,222.89||

(Continued)
Opening balance
|||||
|-|-|-|-|
|Neither past duenor impaired|Past due but not impaired|||
||Within oneyear|1-2 years|Over 2years|
|32,339,829.72||||
|657,528,486.54||77,336,030.27||
|20,839,915.25||8,143,184.14||
|710,708,231.51||85,479,214.41||

(2) Please refer to notes to receivables for receivables with provision for impairment made on individual basis.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated with cash or other financial assets settlement, which is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failure in collecting liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows. In order to control such risk, the Company utilized financing tools such as notes settlement and bank borrowings, etc. to optimizing financing structures, and finally maintains a balance between financing sustainability and flexibility. The Company has obtained credit limit from several commercial banks to meet working capital requirements and expenditures.
Financial instruments classified based on remaining time period till maturity
Closing balance
Items
Carrying Contract amount Within one year 1-3 years Over 3 years
amount not yet discounted
Bank borrowings 414,500,000.00 425,051,255.69 425,051,255.69
Notes payable 127,511,550.00 127,511,550.00 127,511,550.00
||||
|-|-|-|
|946,036,989.97|946,036,989.97|946,036,989.97|
|562,892.07|562,892.07|562,892.07|
|1,692,213.38|||
|80,118.00|||
|1,490,383,763.42|1,499,162,687.73|1,499,162,687.73|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 (Continued)
Opening balance
Items
|||||
|-|-|-|-|
|Carryingamount|Contract amountnot yet discounted|Within one year|1-3 years|
|458,000,000.00|465,993,345.88|466,579,900.72||
|110,018,641.90|110,018,641.90|110,018,641.90||
|922,132,610.96|951,018,098.91|951,018,098.91||
|586,554.84|586,554.84|586,554.84||
|7,115,513.38|7,115,513.38|5,423,300.00|1,692,213.38|
|80,118.00|80,118.00|||
|1,526,818,927.03|1,534,812,272.91|1,533,626,496.37|1,692,213.38|

(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash flows due to changes in market price.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value of financial instruments or future cash flows due to changes in market interest. TheCompany’s interest risk relates mainly to borrowings with floating interest rate.
As of 30 June 2016, balance of borrowings with interest accrued at floating interest rate totaled 182,500,000.00 yuan (31 December 2015: 458,000,000.00 yuan). If interest rates had been 50 basis points higher/lower and all other variables were held constant, financial effect on the Company would be a/an decrease/increase of 180,000.00 yuan (31 December 2015: a/an decrease/increase 3 million yuan) in equity, a/an decrease/increase of 180,000.00 yuan (2015: a/an decrease/increase 3 million yuan) in net profit. 2. Foreign currency risk
Foreign currency risk is the risk arising from changes in exchange rate. The Company is mainly operated in mainland China, with a small amount of imports and exports, and its main activities are denominated in RMB, hence, the Company bears insignificant market risk arising from foreign exchange changes.
Please refer to notes to foreign currency monetary items for details in foreign currency financial assets and liabilities at the end of the period.
VIII. Related party relationships and transactions
(I) Related party relationships
1. Details of parent company
(1) Parent company
|||||
|-|-|-|-|
|Place of registration|Businessnature|Registeredcapital(unit:RMB’0000)|Holdingproportionover theCompany (%)|
|No.2 Tudi 2 Road,Zhongguan villageeconomy zone,Haidian district,|Informationindustry|190,305.00|53.49|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||||
|-|-|-|-|
|Place of registration|Businessnature|Registeredcapital(unit:RMB’0000)|Holdingproportionover theCompany (%)|
|Beijing||||

TheCompany’s ultimate controlling party is中国普天信息产业集团公司(China PUTIAN Corporation14)
2. Please refer notes to interest in other entities for details on theCompany’s subsidiaries.
3. Joint ventures and associates of the Company
Please refer to notes to interest in other entities for details on theCompany’s significant joint ventures and associates. Details of other joint ventures or associates carrying out related party transactions with the Company in current period or in preceding period but with balance in current period are as follows:
Joint ventures or associates Relationships with the Company
Potevio Hi-tech Industry Co., Ltd. Associates
Nanjing Putian Telege Cable Co., Ltd. Associates
SEI-Nanjing Putian Optical Network Co., Ltd. Joint ventures
4. Other related parties of the Company
Relationships with the
Related parties
Company
南京普天鸿雁电器科技有限公司 Controlled by the parent
(Nanjing Hongyar Electrical Technology Co., Ltd.15) company
上海普天邮通科技股份有限公司 Controlled by the parent
(Shanghai Putian Post And Telecommunications Technology Co.,Ltd.*) company
北京普天太力通信科技有限公司 Controlled by the parent
(Beijing Putian Taili Communications Technology Co.,Ltd.*) company
杭州鸿雁东贝光电科技有限公司 Controlled by the parent
(Hangzhou Hongyar Dongbei Photoelectric Technology Co.,Ltd.*) company
上海普天网络技术有限公司 Controlled by the parent
(Shanghai Putian Network Technology Co.,Ltd.*) company
普天通信有限责任公司 Controlled by the parent
(PUTIAN Telecommunications Co.,Ltd.*) company
普天信息技术有限公司 Controlled by the parent
(Potevio Information Technology Co.,Ltd.*) company
Beijing Picom Telecommunications Equipment Co., Ltd. An auxiliary unit
(II) Related party transactions
1. Purchase and sale of goods, rendering and receiving services
(1) Purchase of goods and receiving of services
|||
|-|-|
|Content of transaction|Current periodcumulative|
|Telecommunications|9,024,031.01|

14 The English names are for identification purpose only.
15 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||
|-|-|
|Content of transaction|Current periodcumulative|
|Telecommunications|12,577,759.12|
|Telecommunications|141,138.49|
|Telecommunications|1,341,156.00|

(2) Sale of goods and rendering of services
|||
|-|-|
|Content of transaction|Current periodcumulative|
|Telecommunications|209,330.77|
|Telecommunications|25,562,525.57|
|Telecommunications|36,899.15|
|Telecommunications|48,588.22|
|Telecommunications|9,692.31|
|Telecommunications|13,076.92|
|Telecommunications|3,418.80|

2. Related party leases
(1) The Company as the lessor
|||
|-|-|
|Types of asset leased|Lease income forcurrent period|
|Buildings and structures|401,248.38|

(2) The Company as the lessee
|||||
|-|-|-|-|
|Types ofasset leased|Lease expensesfor currentperiod|Lease expensesfor theprecedingperiod|Propertyservices forcurrent period|
|Buildingsandstructures|4,432,114.67|3,643,980.65|1,277,232.00|

3. Related party guarantees
The Company and its subsidiaries as guaranteed parties
||||
|-|-|-|
|Amountguaranteed|Commencement date|Maturitydate|
|10,000,000.00|2016/2/3|2017/2/2|
|30,000,000.00|2016/2/4|2017/2/3|
|20,000,000.00|2016/2/3|2017/2/2|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||
|-|-|-|
|20,000,000.00|2016/3/8|2017/3/7|
|20,000,000.00|2016/5/24|2017/5/24|
|30,000,000.00|2016/4/28|2017/4/28|
|20,000,000.00|2015/12/3|2016/12/3|
|30,000,000.00|2015/9/6|2016/9/6|
|20,000,000.00|2016/5/5|2016/11/4|
|10,000,000.00|2016/5/5|2016/11/4|

4. Keymanagement’s emoluments
||
|-|
|Current period cumulative|
|476,589.62|

5. Other related party transactions
The Company paid 326,250.00 yuan to China Potevio Company Limited as interest for designated loans.
(III) Balance due to or from related parties
1. Balance due from related parties
|||||
|-|-|-|-|
|Related parties|Closing balance|||
||Book balance|Provision forbad debts|Book balance|
|China Potevio CompanyLimited|34,081,649.21|255,181.64|30,268,243.47|
|Potevio InformationTechnology Co., Ltd.|663,722.10||1,300,868.75|
|Shanghai Putian NetworkTechnology Co., Ltd.|536,319.70|97,071.26|536,399.40|
|Shanghai Putian Post AndTelecommunicationsTechnology Co., Ltd.|12,978,934.00|5,191,573.60|12,978,934.00|
|PUTIANTelecommunications Co.,Ltd.|||222,173.00|
|Beijing Putian TailiCommunicationsTechnology Co., Ltd.|20,276.00|||
|China PUTIANCorporation|624,148.80|||
||48,905,049.81|5,543,826.50|45,306,618.62|
|China Potevio CompanyLimited|1,050,000.00|105,000.00|1,530,000.00|
|Beijing PicomTelecommunicationsEquipment Co., Ltd.|28,912,122.71|28,912,122.71|28,912,122.71|
||29,962,122.71|29,017,122.71|30,442,122.71|

2. Balance due to related parties
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||
|-|-|
|Related parties|Closing balance|
|SEI-Nanjing Putian Optical Network Co.,Ltd.||
|China Potevio Company Limited|3,152,358.40|
|Potevio Hi-tech Industry Co., Ltd.|2,496,059.00|
|Nanjing Putian Telege Cable Co., Ltd.||
|Nanjing Hongyar Electrical TechnologyCo., Ltd.|469,836.40|
|Shanghai Putian Network TechnologyCo., Ltd.|11,685.00|
|PUTIAN Telecommunications Co., Ltd.||
||6,129,938.80|
|China Potevio Company Limited|16,567,297.49|
||16,567,297.49|
|Potevio Hi-tech Industry Co., Ltd.|240,000.00|
||240,000.00|

IX. Commitments and contingencies
None
X. Other significant events
Segment information
1. Identification basis and accounting policies for reportable segments
Reportable segments are identified based on operating segments which are determined based on the structure of theCompany’s internal organization, management requirements and internal reporting system. An operating segment is a component of the Company that:
(1) engages in business activities from which it may earn revenues and incur expenses;
(2) whose financial performance are regularly reviewed by Management to make decisions about resource to be allocated to the segment and assess its performance; and
(3) for which financial information regarding financial position, financial performance and cash flows is available.
The Company identified reportable segments based on products. Assets and liabilities shared by different segments are allocated between segments proportionate to their respective size.
2. Financial information of reportable segments
Products segment
||||||
|-|-|-|-|-|
|Video conferencingproducts|Generic cableproducts|Electrical products|Wiring products|Inter-segmentoffsetting|
|246,666,682.89|142,200,652.00|59,302,043.41|413,719,913.49|62,598,728.49|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||
|-|-|-|-|-|
|206,712,577.40|111,331,266.82|42,043,639.84|360,800,602.42|66,446,476.82|
|407,272,884.37|262,291,911.27|170,409,132.19|1,601,710,029.23|372,160,933.70|
|252,991,924.43|160,619,148.23|77,019,230.14|1,353,990,425.88|207,995,394.24|

XI. Notes to items of parent company financial statements
(I) Notes to items of parent company balance sheet
1. Accounts receivable
(1) Details
1) Details on categories
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Provisionproportion(%)|
|552,660,093.87|99.66|17,834,894.08|3.23|
|552,660,093.87|99.66|17,834,894.08|3.23|
|1,881,238.51|0.34|1,881,238.51|100.00|
|554,541,332.38|100.00|19,716,132.59|3.56|

(Continued)
Opening balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion(%)|Amount|Provisionproportion(%)|
|442,433,780.84|99.58|16,442,036.98|3.72|
|442,433,780.84|99.58|16,442,036.98|3.72|
|1,881,238.51|0.42|1,881,238.51|100.00|
|444,315,019.35|100.00|18,323,275.49|4.12|

2) In portfolios, accounts receivable with provision made on a collective basis with age analysis method
Closing balance
Ages
|||
|-|-|
|Book balance|Provision for bad debts|
|423,155,966.49||
|66,831,242.53||

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance
Ages
|||
|-|-|
|Book balance|Provision for bad debts|
|26,590,487.46|2,659,048.75|
|15,815,046.60|4,744,513.98|
|15,467,663.86|6,187,065.54|
|2,777,105.59|2,221,684.47|
|2,022,581.34|2,022,581.34|
|552,660,093.87|17,834,894.08|

(2) Provisions made, collected or reversed in current period
Provision for bad debts made in current period totaled 1,392,857.10 yuan.
(3) Details of the top 5 debtors with largest balances
|||
|-|-|
|Book balance|Proportion to the totalbalance of accountsreceivable (%)|
|79,237,019.19|14.29|
|32,571,545.21|5.87|
|21,400,715.00|3.86|
|14,613,453.72|2.64|
|13,709,027.78|2.47|
|161,531,760.90|29.13|

2. Other receivables
(1) Details
1) Details on categories of other receivables
Closing balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion (%)|Amount|Provisionproportion (%)|
|32,997,289.04|37.87|32,997,289.04|100.00|
|54,141,741.28|62.13|4,025,684.38|7.44|

16 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion (%)|Amount|Provisionproportion (%)|
|21,907,316.14|25.14|||
|32,234,425.14|36.99|4,025,684.38|12.49|
|87,139,030.32|100.00|37,022,973.42|42.49|

(Continued)
Opening balance
|||||
|-|-|-|-|
|Book balance||Provision for bad debts||
|Amount|Proportion (%)|Amount|Provisionproportion (%)|
|32,997,289.04|43.92|32,997,289.04|100.00|
|42,131,015.27|56.08|4,066,650.24|9.65|
|18,300,643.50|24.36|||
|23,830,371.77|31.72|4,066,650.24|17.06|
|75,128,304.31|100.00|37,063,939.28|49.33|

2) Other receivables of individually significant amount and with provision made on an individual basis
||||
|-|-|-|
|Book balance|Provision for baddebts|Provisionproportion (%)|
|4,085,166.33|4,085,166.33|100.00|
|28,912,122.71|28,912,122.71|100.00|
|32,997,289.04|32,997,289.04||

3) In portfolios, other receivables with provision made on a collective basis with age analysis method
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Closing balance
Ages
|||
|-|-|
|Book balance|Provision for bad debts|
|16,067,161.62||
|8,582,271.60||
|2,590,364.77|259,036.48|
|592,454.29|177,736.29|
|1,227,129.05|490,851.62|
|384,919.12|307,935.30|
|2,790,124.69|2,790,124.69|
|32,234,425.14|4,025,684.38|

(2) Provisions made, collected or reversed in current period
Provisions for bad debts made in current period totaled 40,965.86 yuan.
(3) Other receivables categorized by nature
||
|-|
|Closing balance|
|1,052,863.93|
|24,479,125.94|
|59,456,036.65|
|2,151,003.80|
|87,139,030.32|

(4) Details of the top 5 debtors with largest balances
|||||
|-|-|-|-|
|Nature of receivables|Book balance|Age|Proportion tothe total balanceof otherreceivables (%)|
|Temporary advancepayment receivable|28,912,122.71|Over 6 years|33.18|
|Deposit as security|4,784,198.21|0-2 years|5.49|
|Deposit as security|3,200,000.00|0-3 years|3.67|
|Deposit as security|1,050,000.00|2-3 years|1.20|
|Deposit as security|630,000.00|3-6 years|0.72|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
|||
|-|-|
|38,576,320.92|44.27|

3. Long-term equity investments
(1) Categories
||||||
|-|-|-|-|-|
|Closing balance|||||
|Book balance|Provision forimpairment|Carryingamount|Book balance|Provision forimpairment|
|173,787,270.64|1,910,520.00|171,876,750.64|173,787,270.64|1,910,520.00|
|183,646,312.90||183,646,312.90|183,247,835.37||
|357,433,583.54|1,910,520.00|355,523,063.54|357,035,106.01|1,910,520.00|

(2) Investments in subsidiaries
||||||
|-|-|-|-|-|
|Opening balance|Increase|Decrease|Closing balance|Provision forimpairmentmade in currentperiod|
|57,831,011.71|||57,831,011.71||
|5,610,000.00|||5,610,000.00||
|2,610,457.00|||2,610,457.00||
|1,294,510.00|||1,294,510.00||
|13,860,000.00|||13,860,000.00||
|3,320,003.45|||3,320,003.45||
|1,910,520.00|||1,910,520.00|1,910,520.00|
|7,741,140.41|||7,741,140.41||
|40,997,683.00|||40,997,683.00||
|33,175,148.00|||33,175,148.00||

17 The English names are for identification purpose only.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||||||
|-|-|-|-|-|
|Opening balance|Increase|Decrease|Closing balance|Provision forimpairmentmade in currentperiod|
|5,436,797.07|||5,436,797.07||
|173,787,270.64|||173,787,270.64|1,910,520.00|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 (3) Investments in associates and joint ventures
|||||
|-|-|-|-|
|Opening balance||||
||Investmentsincreased|Investmentsdecreased|Investment incomerecognized underequity method|
|13,543,120.01|||107,587.79|
|13,543,120.01|||107,587.79|
|169,704,715.36|||653,261.74|
|169,704,715.36|||653,261.74|
|183,247,835.37|||760,849.53|

(Continued)
||||||
|-|-|-|-|-|
|Increase/decrease||||Closing balance|
|Changes inother equity|Cashdividend/profitdeclared fordistribution|Provision forimpairment|Others||
|||||13,650,707.80|
|||||13,650,707.80|
||362,372.00|||169,995,605.10|
||362,372.00|||169,995,605.10|
||362,372.00|||183,646,312.90|

(II) Notes to items of the parent company income statement
1. Operating revenue/cost
||||
|-|-|-|
|Current period cumulative|||
|Revenue|Cost|Revenue|
|317,684,044.43|278,160,497.11|356,728,650.51|
|31,541,554.81|25,207,779.79|40,179,602.06|
|349,225,599.24|303,368,276.90|396,908,252.57|

2. Investment income
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||
|-|
|Current period cumulative|
|760,849.53|
|760,849.53|

XVI. Other supplementary information
(I) Non-recurring profit or loss
1. Schedule of non-recurring profit or loss of current period
||
|-|
|Amount|
|13,717.36|
|1,211,187.47|
|237,871.59|
|1,462,776.42|
|58,489.55|
|159,023.93|
|1,245,262.94|

Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016
||
|-|
|Amount|

(II) RONA and EPS
1. Details
|||
|-|-|
|Weighted average RONA(%)||
||Basic EPS|
|-6.28|-0.10|
|-6.65|-0.10|

2. Calculation process of weighted average RONA
|||
|-|-|
||Symbols|
||A|
||B|
||C=A-B|
||D|
||E|
||F|
||G|
||H|
|The currency translationreserve increased in currentperiod|I|
|Number of months countingfrom the next month whenother net assets wereincreased or decreased tothe end of the reportingperiod|J|
||K|
||L= D+A×1/2+ E×F/K-G×H/K±I×J/K|
||M=A/L|
||N=C/L|

3. Calculation process of basic EPS and diluted EPS
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 (1) Calculation process of basic EPS
||
|-|
|Symbols|
|A|
|B|
|C=A-B|
|D|
|E|
|F|
|G|
|H|
|I|
|J|
|K|
|L=D+E+F×G/K-H×I/K-J|
|M=A/L|
|N=C/L|

(2) The calculation process of diluted EPS is the same with that of basic EPS.
Nanjing Putian Telecommunications Co., Ltd. SEMI-ANNUAL REPORT 2016 Section X. Documents available for reference
(I)Financial statement of the Company with signature and seal from the person in charge of the Company, person in charge of the accounting works and person in charge of accounting;
(II)Original text of all documents of the Company as well as manuscript of the announcement that disclosed on website appointed by CSRC
Board of Directors of Nanjing Putian Telecommunications Co., ltd. 30 August 2016