Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2018
April 2018
Section I. Important Notes
Board of Directors and the Supervisory Committee of Shenzhen Zhongheng Huafa Co., Ltd (hereinafter referred to as the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint.
All Directors are attended the Board Meeting for Quarterly Report deliberation. Li Zhongqiu, person in charge of the Company, Yang Bin, person in charger of accounting works and WuAi’jie, person in charger of accounting organ (accounting officer) hereby confirm that the Financial Statement of this Quarterly Report is authentic, accurate and complete.
Section II. Basic situation of the Company
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes√ No
|||||
|-|-|-|-|
|||At the same period of last|Changes of this period over|
||Current period|||
|||year|same period of last year|
|Operating income (RMB)|171,620,013.62|191,829,256.72|-10.54%|
|Net profit attributable to shareholders of|307,367.89|421,173.37||
||||-27.02%|
|the listed company (RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting|5,469.74|-36,964.59|114.80%|
|non-recurring gains and losses (RMB)||||
|Net cash flow arising from operating|337,819.42|-18,501,959.59||
||||101.83%|
|activities (RMB)||||
|Basic earnings per share (RMB/Share)|0.0011|0.0015|-26.67%|
|Diluted earnings per share (RMB/Share)|0.0011|0.0015|-26.67%|
|Weighted average ROE|0.10%|0.13%|-0.03%|
||||Changes of this period-end|
||At the end of the reporting|||
|||At the end of last year|over same period-end of last|
||period|||
||||year|
|Total assets (RMB)|600,196,482.65|629,762,731.38|-4.69%|
|Net assets attributable to shareholder of|320,980,345.91|320,672,978.02||
||||0.10%|
|listed company (RMB)||||

Items and amount of non-recurring gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||period-end||
|Gains/losses from the disposal of non-current asset (including the|||
||-266,354.57||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|||
|including the subsidy enjoyed in quota or ration according to|||
||450,000.00||
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Other non-operating income and expenditure except for the|60,618.20||

||||
|-|-|-|
|aforementioned items|||
|Other gain/loss items satisfying the definition of nonrecurring|||
||110,910.67||
|gain/loss account|||
|Less: impact on income tax|53,276.15||
|Total|301,898.15|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
II. Total number of shareholders at the end of this report period and top ten shareholders 1. Total number of common shareholders at the end of this report period and top ten common shareholders In shares
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Total preference shareholders|||||
|Total common stock shareholders in||||with voting rights recovered at|||||
|||28,974|||||0||
|reporting period-end||||end of reporting period (if|||||
|||||applicable)|||||
|Top ten shareholders|||||||||
||||||Amount of|Number of share pledged/frozen|||
|Shareholder’s|||Amount of shares||||||
||Nature of|Proportion of|||||||
||||||restricted shares||||
|name|shareholder|shares held|held|||State of share||Amount|
||||||held||||
|WuhanZhonghengGroup|Domesticnon-state-ownedlegal person|41.14%|116,489,894||0|Pledged||116,489,894|
|||||||Frozen||116,489,894|
|SEG (HONGKONG) CO.,LTD.|Overseas legalperson|5.85%|16,569,560||0|Pledged||0|
|||||||Frozen||0|
|GOOD HOPECORNERINVESTMENTSLTD|Overseas legalperson|4.49%|12,700,000||0|Pledged||0|
|||||||Frozen||0|
|ChangjiangSecuritiesBrokerage(Hongkong) Co.,|Overseas legalperson|1.89%|5,355,249||0|Pledged||0|
|||||||Frozen||0|

||||||||
|-|-|-|-|-|-|-|
|Ltd.|||||||
|Zhong Jiachao|Domestic natureperson||1,124,774|0|Pledged|0|
||||||Frozen|0|
|LI SHERYNZHAN MING|Overseas legalperson||1,036,200|0|Pledged|0|
||||||Frozen|0|
|Li Senzhuang|Domestic natureperson||956,600|0|Pledged|0|
||||||Frozen|0|
|Han Yaming|Domestic natureperson||864,200|0|Pledged|0|
||||||Frozen|0|
|BINGHUA LIU|Overseas legalperson||840,313|0|Pledged|0|
||||||Frozen|0|
|Zhou Hongbing|Domestic natureperson||800,000|0|Pledged|0|
||||||Frozen|0|
|Top ten shareholders with unrestricted shares held|||||||
||||||Type of shares||
|Shareholder’s name||Amount of unrestricted shares held|||||
||||||Type|Amount|
|Wuhan Zhongheng Group||116,489,894|||RMB common||
|||||||116,489,894|
||||||share||
|SEG (HONG KONG) CO., LTD.||16,569,560|||Domestically||
||||||listed foreign|16,569,560|
||||||shares||
|GOOD HOPE CORNERINVESTMENTS LTD||12,700,000|||Domestically||
||||||listed foreign|12,700,000|
||||||shares||
|Changjiang Securities Brokerage(Hongkong) Co., Ltd.||5,355,249|||Domestically||
||||||listed foreign|5,355,249|
||||||shares||
|Zhong Jiachao||1,124,774|||RMB common||
|||||||1,124,774|
||||||share||
|LI SHERYN ZHAN MING||1,036,200|||Domestically||
||||||listed foreign|1,036,200|
||||||shares||
|Li Senzhuang||956,600|||Domestically||
||||||listed foreign|956,600|
||||||shares||
|Han Yaming||864,200|||Domestically||
||||||listed foreign|864,200|
||||||shares||

|||||
|-|-|-|-|
|BINGHUA LIU|840,313|Domestically||
|||listed foreign|840,313|
|||shares||
|Zhou Hongbing|800,000|RMB common||
||||800,000|
|||share||
||Among the top ten shareholders, Wuhan Zhongheng New Science & Technology Industrial|||
||Group Co., Ltd. neither bears associated relationship with other shareholders, nor belongs to|||
|Explanation on associated|the consistent actor that are prescribed in Measures for the Administration of Disclosure of|||
|relationship among the aforesaid|Shareholder Equity Changes of Listed Companies. The Company neither knew whether there|||
|shareholders|exists associated relationship among the other tradable shareholders, nor they belong to|||
||consistent actors that are prescribed in Measures for the Administration of Disclosure of|||
||Shareholder Equity Changes of Listed Companies.|||
|Explanation on top 10 common||||
|shareholders involving margin|N/A|||
|business (if applicable)||||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred stock held
□ Applicable√ Not applicable
Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons
√Applicable□Not applicable
||||||
|-|-|-|-|-|
|Item|2018-3-31|2017-1-1|Y-o-y changes|Reasons of changes|
|Account paid in|21,059,239.02|2,878,128.01|631.70%|Account paid in advance for material to Haierin the Period|
|advance|||||
||8,687,027.96|4,335,729.72|100.36%|Rental from Jifang Investment are notcollected in the period|
|Other receivables|||||
|Construction in|1,172,756.00|654,356.00|79.22%|Fence construction in Gongming increased in|
|process||||the period|
|Accounts payable|57,200,204.76|84,004,870.73|-31.91%|Payable are written down by part of the|
|||||payment paid in advance|
|Account received|367,676.99|278,128.18|32.20%|Some of the account for goods are collectedadvance in the period|
|in advance|||||
|Employee salary|3,106,633.16|5,083,357.93|-38.89%|Year-end bonus are issued in the period|
|payable|||||
|Interest payable|255,829.74|164,895.80|55.15%|Short-term loans increased in the period|
|Item|Jan.-March of 2018|Jan.-March of 2017|Y-o-y changes|Reasons of changes|
|Financial expenses|4,354,111.52|2,759,446.38|57.79%|Short-term loans increased in the period|
|Assets impairment|-|-93,425.39|100.00%|Bad debt of last period are collected|
|loss|||||
|Income from|110,910.67|-||Income from bank financial products|
|investment|||||
|Asset disposal|-266,354.57|-17,113.46||Current fixed assets disposal losses.|
|income|||||
|Non-operating|1,381.80|271.73|408.52%|Current tax payment is overdue.|
|expenditure|||||
|Item|Jan.-March of 2018|Jan.-March of 2017|Y-o-y changes|Reasons of changes|
||7,128,845.32|4,088,728.88|74.35%|VAT paid in the period are increased at lastperiod|
|Taxes paid|||||
|Cash received from|42,000,000.00|-||Bank financial products are redemption|
|recovering|||||
|investment|||||
|Cash received from|110,910.67|-||Income from bank financial products|

||||||
|-|-|-|-|-|
|investment income|||||
|Net cash received|412,682.00|55,901.58|638.23%|Collection of the account from fixed assetsdisposal declined in the period|
|from disposal of|||||
|fixed, intangible|||||
|and other|||||
|long-term assets|||||
|Cash paid for|3,851,816.62|2,406,232.31|60.08%|Renewing fixed assets equipment in theperiod|
|purchasing fixed,|||||
|intangible and|||||
|other long-term|||||
|assets|||||
|Cash paid for|42,000,000.00|-||Purchasing bank financial prodcuts|
|investment|||||
|Cash received from|131,532,341.95|41,987,422.93|213.27%|short-term loans increased in the period|
|loans|||||
|Cash paid for|131,560,722.31|41,098,717.81|220.11%|Short-term loans are paid in the period|
|settling debts|||||

II. Analysis and explanation of significant events and their influence and solutions
√ Applicable□Not applicable
(I) The Company signed Asset Exchange Contract with Wuhan Zhongheng Group on 29 April 2009 (details were referred to in the announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of the Company (namely two parcel of industrial lands located at Huafa road, Gongming town, Guangming new district, Shenzhen (the property certificate No. were SFDZ No.7226760 and SFDZ No.7226763, No. of parcels were A627-005 andA627-007, and the aggregate area was 48,200 sq.m) were the lands listed in the first batch of plan for 2010 Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project and joint cooperation, the Company has not completed the transfer procedures in respect of the aforesaid land. The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the first extraordinary general meeting of the Board in 2015 on March 4, 2015, which considered and approved the “Motion on promoting and implementing the urban renewal project for the renewal units of Huafa area at Gongming street, Guangming new district, Shenzhen”, specified that the Company and Wuhan Zhongheng Group shall obtain the corresponding compensatory consideration for removal from the respectively owned project plots and the respectively contributed and constructed above-ground buildings before the land development, it is estimated that the compensatory consideration obtained by the Company accounts for50.5% of the total consideration and Wuhan Zhongheng Group accounts for49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting held on September 11, 2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewal and the progress of related transactions of‘the updated units at Huafa Area, Gong Ming Street, Guangming New District,Shenzhen’”, the company has signed the “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area, Gong Ming Street,
Guangming New District, Shenzhen”, “Contract for the cooperative venture of reconstruction project for Huafa Industrial Park, Gong
Ming Street, Guangming New District” and “Agreement on housing acquisition and removal compensation and resettlement” with
Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “Wuhan Zhongheng Group”), Shenzhen
Vanke Real Estate Co., Ltd. (hereinafter referred to as “Shenzhen Vanke”), and Shenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred to as “Vanke Guangming”).
On 12 September 2016, the Company received a “Notice of Arbitration No.: SHEN DP20160334” from SCIA, Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen” against the Company and Wuhan Zhongheng Group. The arbitration court holds hearings on 12 November 2016 and 13 May 2017. Shenzhen Court of International Arbitration (SCIA) has given a ruling in August 2017, although most of the arbitration claims proposed by Shenzhen Vanke are rejected by arbitration court, the arbitration procedures and so-called cognizance of fact of contract breach still has problems in arbitration. The results have damaged the legitimate rights and interest of the Company, and we have putting forward the application for dismantling in February 2018 to the Shenzhen IntermediatePeople’s Court. The Court has accepted the case formally. Progress of the case found more in the Notices released on Juchao website (www.cninfo.com.cn) dated 14 Sept. 2016, 1 Nov. 2016, 16 Nov. 2016, on 18 Feb. 2017, 24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017 and 9 Feb. 2018 respectively.
(ii) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to China Merchants Securities Assets Co., Ltd. with due date of 31 December 2016. Wuhan Zhongheng Group deferred the repurchase business day to 30 June 2017. on 1 Feb. 2016, Wuhan Zhongheng Group pledge the 27,349,953 shares held to China Merchants Securities Assets Co., Ltd. with due date of 31 December 2016. The above mentioned shares are deferred for repurchase of stock pledge by Wuhan Zhongheng Group; pledge expired on 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till end of this period released, controlling shareholder still not removed the pledge and the Company has apply by letter, relevant Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in notice released on Juchao website (www.cninfo.com.cn) date 2 Feb. 2018.
(iii) stock of the Company 116,489,894 shares(41.14% in total share capital of the Company) held by controlling shareholdre Wuhan Zhongheng Group are being judicially freeze from 27 September 2016 to 26 September 2018. Found more in the notice released by the Company on Juchao Website (www.cninfo.com.cn) dated 27 October 2016
(iv) On March 21, 2014, Huafa Property and Shenzhen Jifang Investment Co., Ltd. (hereinafter referred to as "Jifang Investment") signed the "Shenzhen Housing Leasing Contract" and the "Supplemental Agreement on Leasing Contract", which were canceled on February 5, 2016. As Jifang Investment occupied the site, and defaulted rent, management fee and water and electricity bills in the long term, in order to safeguard the legitimate rights and interests, Huafa Property submitted a request for arbitration to Shenzhen Arbitration Commission on March 8, 2016, and received the (2016) SZCZ No. 346 ruling paper from Shenzhen Arbitration Commission in November 2016 which ruled Huafa Property won the lawsuit. See details on the notice published at www.cninfo.com.cn by the Company on November 8, 2016.
(v) Mr. Li Yongping, the director and vice-president of the company, has applied for resigning the director, vice-president and the committee member of the special committee under the board of directors of the company due to the mandatory retirement age (60 years old), recommended by thecompany’s second largest shareholder, SEG (Hong Kong) Co., Ltd., thecompany’s first extraordinary general meeting of shareholders in 2017 considered and approved Mr. Zhang Guangliu to be the director of the company, and elected Mr. Zhang Guangliu as the vice-president of thecompany’s 9th Board of Directors by the 3rd extraordinary meeting of the board of directors of the company in 2017, see details on the relevant announcement the company issued at www.cninfo.com.cn on July 19, 2017.
(vi) Commitment of overweight
On 20 November 2017 and 28 November 2017, the controlling shareholders respectively made commitments to increase the shareholding of 2.83 million shares of thecompany’s B Shares and no less than 2.8 million shares of thecompany’s A Shares, with a commitment period of 6 months. As of the disclosure date of this report,it’s still in the commitment fulfillment period, and the
commitment has not been fulfilled.
||||
|-|-|-|
|Summary of important issues|Disclosure date|Interim report disclosure index|

 III. Commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies
√Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||Type of|||||
|||||Commitment|Commitment||
|Commitments|Promise||Content of commitments|||Implementation|
|||commitments||date|term||
||||The enterprise and its subsidiaries||||
||||will not participate directly or||||
||||indirectly in operation of the||||
||||||Implement||
||||business with competitive of Shen||||
||Wuhan||||since 12 April||
||||Huafa and its controlling subsidiary|||In normal|
||Zhongheng|||2007-03-29|2007||
||||concerned, and not to damage the|||implementing|
||Group||||throughout the||
||||interest of the Shen Huafa and its||||
||||||year||
||||controlling subsidiary by making||||
||||use of the potential controlling-ship||||
||||of the Shen Huafa either||||
||||The enterprise and its subordinate||||
||||enterprise shall avoid a related||||
||||transaction as far as possible with||||
||||Shen Huafa and its controlling||||
||||subsidiary, as for the related||||
||||dealings occurred inevitable or||||
|Commitments for|||||||
||||have reasonable cause, the||||
|share reform|||||||
||||enterprise promise to follow the||||
||||||Implement||
||||principle of fair-ness, justice and||||
||Wuhan||||since 12 April||
||||open-ness, signed the agreement in|||In normal|
||Zhongheng|||2007-03-29|2007||
||||line with the laws, perform legal|||implementing|
||Group||||throughout the||
||||program, fulfill information||||
||||||year||
||||disclosure obligation and relevant||||
||||approval procedures according to||||
||||the relevant laws, regulations and||||
||||“Listing Rules” of the Shenzhen||||
||||Stock Exchange, guarantee not to||||
||||damage the legal interest of Shen||||
||||Huafa and its shareholders through||||
||||related transactions||||
||Wuhan||After acquisition and assets||Implement||
|||||||In normal|
||Zhongheng||restructuring, guarantee to have an|2007-03-29|since 12 April||
|||||||implementing|
||Group||independent staff, owns||2007||

|||||||
|-|-|-|-|-|-|
|||independent and completed assets,||throughout the||
|||and independent in aspect of||year||
|||business, financial and institution||||
|||from Shen Huafa||||
|Commitments in||||||
|report of||||||
|acquisition or||||||
|equity change||||||
|Commitments in||||||
|assets||||||
|reorganization||||||
|Commitments||||||
|make in initial||||||
|public offering or||||||
|re-financing||||||
|Equity incentive||||||
|commitment||||||
|||Regarding the lawsuit with||||
|||Shenzhen Vanke: 1. If the||||
|||arbitration judges Shenzhen Vanke||||
|||to win, the arbitration losses caused||||
|||||Implemented||
||Wuhan|by the contract disputes shall be||||
|||||since 20|In normal|
||Zhongheng|undertaken by Wuhan Zhongheng|2016-12-20|||
|||||December|implementing|
||Group|Group in full; 2. The contingent||||
|||||2016||
|||losses and risks arising from the||||
|||termination of relevant contracts||||
|||shall be undertaken by Wuhan||||
|Other||Zhongheng Group in advance.||||
|commitments for||||||
||||||Ended as the|
|medium and||||||
|small||Promise to increasing shares of|||reporting period,|
|shareholders|Wuhan|||In 6 months||
|||holding as 2.83 million shares of|||the promises during|
||Zhongheng||2017-11-20|since the date||
|||B-stock of the Company in 6|||performance period|
||Group|||of notification||
|||months since the letter delivery|||has not been|
||||||implemented yet|
||||||Ended as the|
|||Promise to increasing shares of|||reporting period,|
||Wuhan|||n 6 months||
|||holding as 2.8 million shares of|||the promises during|
||Zhongheng||2017-11-28|since the date||
|||A-stock at least in 6 months since|||performance period|
||Group|||of notification||
|||the letter delivery|||has not been|
||||||implemented yet|
|Completed on||||||
||Yes|||||
|time(Y/N)||||||

|||
|-|-|
|If the||
|commitments is||
|not fulfilled on||
|time, shall||
||Not applicable|
|explain the||
|specify reason||
|and the next work||
|plan||

IV. Predict of the business performance from January to June 2018
Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be loss or have great changes comparing with the same period of last year
□Applicable √Not applicable
V. Securities Investment
□ Applicable√ Not applicable
No security investment in the Period.
VI. Derivative investment
□ Applicable√ Not applicable
No derivative investment in the Period.
VII. Registration form for receiving research, communication and interview in the report period
√Applicable□ Not applicable
|||||
|-|-|-|-|
|Date|||Basic situation index of investigation|
||Method|Type of investors||
|2018-01-04|Telephone communication|Individual|N/A|

VIII. Guarantee outside against the regulation
□Applicable√Not applicable
The Company has no external security against the rules in the Period.
IX. Non-operational fund occupation from controlling shareholders and its related party□ Applicable√ Not applicable
There are no controlling shareholders' and its related party's non-business capital occupying of the listed company.
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Shenzhen Zhongheng Huafa Co., Ltd
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|50,833,311.45|68,812,495.97|
|Settlement provisions|||
|Capital lent|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
||46,630,194.64|64,778,266.65|
|Notes receivable|||
||138,153,697.04|148,795,998.26|
|Accounts receivable|||
|Accounts paid in advance|21,059,239.02|2,878,128.01|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|8,687,027.96|4,335,729.72|
|Purchase restituted finance asset|||
|Inventories|56,501,648.45|60,387,021.65|
|Assets held for sale|||
|Non-current asset due within one|||
|year|||
|Other current assets|50,470.51|52,310.51|
|Total current assets|321,915,589.07|350,039,950.77|
|Non-current assets:|||
|Loans and payments on behalf|||

||||
|-|-|-|
|Finance asset available for sales|||
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|||
|Investment property|51,978,405.02|52,410,958.62|
|Fixed assets|82,477,515.62|83,619,842.39|
|Construction in progress|1,172,756.00|654,356.00|
|Engineering material|||
|Disposal of fixed asset|92,857,471.69|92,857,471.69|
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|42,934,409.72|43,307,316.37|
|Expense on Research and|||
|Development|||
|Goodwill|||
|Long-term expenses to be|129,166.54|141,666.55|
|apportioned|||
|Deferred income tax asset|6,731,168.99|6,731,168.99|
|Other non-current asset|||
|Total non-current asset|278,280,893.58|279,722,780.61|
|Total assets|600,196,482.65|629,762,731.38|
|Current liabilities:|||
|Short-term loans|166,169,693.38|166,620,264.81|
|Loan from central bank|||
|Absorbing deposit and interbank|||
|deposit|||
|Capital borrowed|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|19,369,890.24|17,810,270.28|
|Accounts payable|57,200,204.76|84,004,870.73|
|Accounts received in advance|367,676.99|278,128.18|
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||
|commission payable|||

||||
|-|-|-|
|Wage payable|3,106,633.16|5,083,357.93|
|Taxes payable|11,310,456.31|15,136,277.68|
|Interest payable|255,829.74|164,895.80|
|Dividend payable|||
|Other accounts payable|21,371,341.16|19,927,276.95|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|279,151,725.74|309,025,342.36|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Special accounts payable|||
|Projected liabilities|64,411.00|64,411.00|
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|64,411.00|64,411.00|
|Total liabilities|279,216,136.74|309,089,753.36|
|Owner’s equity:|||
|Share capital|283,161,227.00|283,161,227.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|146,587,271.50|146,587,271.50|

||||
|-|-|-|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus public reserve|77,391,593.25|77,391,593.25|
|Provision of general risk|||
|Retained profit|-186,159,745.84|-186,467,113.73|
|Total owner’s equity attributable to|320,980,345.91|320,672,978.02|
|parent company|||
|Minority interests|||
|Total owner’s equity|320,980,345.91|320,672,978.02|
|Total liabilities and owner’s equity|600,196,482.65|629,762,731.38|

 Person in charger of accounting works: Yang Bin
Person in charge of accounting organ: WuAi’jie
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
||14,421,294.39|25,181,764.87|
|Monetary funds|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes receivable|||
|Accounts receivable|||
|Account paid in advance|||
|Interest receivable|||
|Dividends receivable|||
|Other receivables|108,465,005.40|99,922,143.84|
|Inventories|14,806.50|14,806.50|
|Assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|||

||||
|-|-|-|
|Total current assets|122,901,106.29|125,118,715.21|
|Non-current assets:|||
|Available-for-sale financial assets|||
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|186,608,900.00|186,608,900.00|
|Investment property|27,281,005.68|27,583,299.22|
|Fixed assets|5,730,531.04|6,821,367.58|
|Construction in progress|1,172,756.00|654,356.00|
|Project materials|||
|Disposal of fixed assets|92,857,471.69|92,857,471.69|
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|4,807,364.25|4,843,600.68|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|129,166.54|141,666.55|
|Deferred income tax assets|7,519,546.71|7,519,546.71|
|Other non-current assets|||
|Total non-current assets|326,106,741.91|327,030,208.43|
|Total assets|449,007,848.20|452,148,923.64|
|Current liabilities:|||
|Short-term borrowings|120,000,000.00|120,000,000.00|
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|||
|Accounts payable|9,740,367.33|10,745,840.16|
|Accounts received in advance|44,210.00|67,210.00|
|Wage payable|833,147.02|1,039,196.20|
|Taxes payable|8,943,727.62|9,305,468.70|
|Interest payable|||
|Dividend payable|||

||||
|-|-|-|
|Other accounts payable|12,412,764.86|14,339,551.78|
|Liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|151,974,216.83|155,497,266.84|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Special accounts payable|||
|Projected liabilities|64,411.00|64,411.00|
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|64,411.00|64,411.00|
|Total liabilities|152,038,627.83|155,561,677.84|
|Owners’ equity:|||
|Share capita|283,161,227.00|283,161,227.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|146,587,271.50|146,587,271.50|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus reserve|77,391,593.25|77,391,593.25|
|Retained profit|-210,170,871.38|-210,552,845.95|
|Total owner’s equity|296,969,220.37|296,587,245.80|
|Total liabilities and owner’s equity|449,007,848.20|452,148,923.64|

3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|171,620,013.62|191,829,256.72|
|Including: Operating income|171,620,013.62|191,829,256.72|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|171,509,663.58|191,831,362.18|
|Including: Operating cost|152,728,695.85|172,648,617.84|
|Interest expense|||
|Commission charge and commission|||
|expense|||
|Cash surrender value|||
|Net amount of expense of|||
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Operating tax and extras|1,117,886.20|1,491,954.21|
|Sales expenses|3,844,118.14|3,335,114.13|
|Administration expenses|9,464,851.87|11,689,655.01|
|Financial expenses|4,354,111.52|2,759,446.38|
|Losses of devaluation of asset||-93,425.39|
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
||110,910.67||
|with “-”)|||
|Including: Investment income on|||
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|Assets disposal income (Loss is|||
|listed with “-”)|||

||||
|-|-|-|
|Other income|||
|III. Operating profit (Loss is listed with|||
||221,260.71|-2,105.46|
|“-”)|||
|Add: Non-operating income|512,000.00|628,235.81|
|Less: Non-operating expense|267,736.37|17,385.19|
|IV. Total Profit (Loss is listed with “-”)|465,524.34|608,745.16|
|Less: Income tax expense|158,156.45|187,571.79|
|V. Net profit (Net loss is listed with “-”)|307,367.89|421,173.37|
|(I) Continuous operation net profit|||
||307,367.89|421,173.37|
|(Net loss is listed with “-”)|||
|(II) Discontinued operation net|||
|profit (Net loss is listed with “-”)|||
|Net profit attributable to owner’s of|||
||307,367.89|421,173.37|
|parent company|||
|Minority shareholders’ gains and|||
|losses|||
|VI. Net after-tax of other comprehensive|||
|income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|||
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will not be reclassified subsequently to|||
|profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will be reclassified subsequently to profit|||
|or loss|||

||||
|-|-|-|
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale financial|||
|assets|||
|4. The effect hedging portion|||
|of gains or losses arising from cash flow|||
|hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign currency|||
|financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|||
|shareholders|||
|VII. Total comprehensive income|307,367.89|421,173.37|
|Total comprehensive income|||
||307,367.89|421,173.37|
|attributable to owners of parent Company|||
|Total comprehensive income|||
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.0011|0.0015|
|(ii) Diluted earnings per share|0.0011|0.0015|

 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party
Legal representative: Li Zhongqiu
Person in charger of accounting works: Yang Bin
Person in charge of accounting organ: WuAi’jie
4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|9,695,927.93|8,977,861.54|
|Less: Operating cost|1,069,611.54|921,292.12|
|Operating tax and extras|608,353.57|664,530.25|
|Sales expenses|||

||||
|-|-|-|
|Administration expenses|5,038,857.70|5,698,725.53|
|Financial expenses|2,469,805.69|1,638,096.80|
|Losses of devaluation of asset||-93,425.39|
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is|||
|listed with “-”)|||
|Including: Investment income|||
|on affiliated company and joint venture|||
|Assets disposal income (Loss is|||
|listed with “-”)|||
|Other income|||
|II. Operating profit (Loss is listed|||
||509,299.43|148,642.23|
|with “-”)|||
|Add: Non-operating income||48,833.89|
|Less: Non-operating expense|||
|III. Total Profit (Loss is listed with|||
||509,299.43|197,476.12|
|“-”)|||
|Less: Income tax expense|127,324.86|72,725.38|
|IV. Net profit (Net loss is listed with|||
||381,974.57|124,750.74|
|“-”)|||
|(I) Continuous operation net profit|||
||381,974.57|124,750.74|
|(Net loss is listed with “-”)|||
|(II) Discontinued operation net|||
|profit (Net loss is listed with “-”)|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||

||||
|-|-|-|
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale|||
|financial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign|||
|currency financial statements|||
|6. Other|||
|VI. Total comprehensive income|381,974.57|124,750.74|
|VII. Earnings per share:|||
|(i) Basic earnings per share|0.0013|0.0004|
|(ii) Diluted earnings per share|0.0013|0.0004|

 5. Consolidated Cash Flow Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|129,571,099.86|117,280,399.55|
|services|||
|Net increase of customer deposit|||
|and interbank deposit|||
|Net increase of loan from central|||
|bank|||
|Net increase of capital borrowed|||

||||
|-|-|-|
|from other financial institution|||
|Cash received from original|||
|insurance contract fee|||
|Net cash received from reinsurance|||
|business|||
|Net increase of insured savings and|||
|investment|||
|Net increase of amount from|||
|disposal financial assets that measured|||
|by fair value and with variation|||
|reckoned into current gains/losses|||
|Cash received from interest,|||
|commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business|||
|capital|||
|Write-back of tax received|||
|Other cash received concerning|||
||1,231,864.14|1,310,630.85|
|operating activities|||
|Subtotal of cash inflow arising from|||
||130,802,964.00|118,591,030.40|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|96,423,780.37|103,498,045.42|
|service|||
|Net increase of customer loans|||
|and advances|||
|Net increase of deposits in central|||
|bank and interbank|||
|Cash paid for original insurance|||
|contract compensation|||
|Cash paid for interest, commission|||
|charge and commission|||
|Cash paid for bonus of guarantee|||
|slip|||
|Cash paid to/for staff and workers|18,269,550.80|17,901,932.73|
|Taxes paid|7,128,845.32|4,088,728.88|
|Other cash paid concerning|||
||8,642,968.09|11,604,282.96|
|operating activities|||
|Subtotal of cash outflow arising from|130,465,144.58|137,092,989.99|

||||
|-|-|-|
|operating activities|||
|Net cash flows arising from operating|||
||337,819.42|-18,501,959.59|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
||42,000,000.00||
|investment|||
|Cash received from investment|||
||110,910.67||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|412,682.00|55,901.58|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
||42,523,592.67|55,901.58|
|activities|||
|Cash paid for purchasing fixed,|||
||3,851,816.62|2,406,232.31|
|intangible and other long-term assets|||
|Cash paid for investment|42,000,000.00||
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||45,851,816.62|2,406,232.31|
|activities|||
|Net cash flows arising from investing|||
||-3,328,223.95|-2,350,330.73|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|||
|investment by subsidiaries|||
|Cash received from loans|131,532,341.95|41,987,422.93|

||||
|-|-|-|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||131,532,341.95|41,987,422.93|
|activities|||
|Cash paid for settling debts|131,560,722.31|41,098,717.81|
|Cash paid for dividend and profit|||
||2,860,474.39|2,261,986.58|
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from|||
||134,421,196.70|43,360,704.39|
|financing activities|||
|Net cash flows arising from financing|||
||-2,888,854.75|-1,373,281.46|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|-200,355.12|-184,437.86|
|exchange rate|||
|V. Net increase of cash and cash|||
||-6,079,614.40|-22,410,009.64|
|equivalents|||
|Add: Balance of cash and cash|||
||81,474,974.30|104,015,312.97|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||75,395,359.90|81,605,303.33|
|equivalents at the period -end|||

6. Cash Flow Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|5,470,760.50|5,288,856.39|
|services|||
|Write-back of tax received|||
|Other cash received concerning|||
||100,278,749.63|20,545,629.33|
|operating activities|||

||||
|-|-|-|
|Subtotal of cash inflow arising from|||
||105,749,510.13|25,834,485.72|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|||
|service|||
|Cash paid to/for staff and workers|899,173.60|1,584,455.10|
|Taxes paid|1,637,395.79|904,864.06|
|Other cash paid concerning|||
||110,421,369.31|17,530,909.03|
|operating activities|||
|Subtotal of cash outflow arising from|||
||112,957,938.70|20,020,228.19|
|operating activities|||
|Net cash flows arising from operating|||
||-7,208,428.57|5,814,257.53|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|||
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
|activities|||
|Cash paid for purchasing fixed,|||
||1,036,800.00|1,367,692.31|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||1,036,800.00|1,367,692.31|
|activities|||
|Net cash flows arising from investing|-1,036,800.00|-1,367,692.31|

||||
|-|-|-|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|100,000,000.00||
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||100,000,000.00||
|activities|||
|Cash paid for settling debts|100,199,862.50||
|Cash paid for dividend and profit|||
||2,315,212.52|1,643,625.00|
|distributing or interest paying|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from|||
||102,515,075.02|1,643,625.00|
|financing activities|||
|Net cash flows arising from financing|||
||-2,515,075.02|-1,643,625.00|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|-166.89|42.91|
|exchange rate|||
|V. Net increase of cash and cash|||
||-10,760,470.48|2,802,983.13|
|equivalents|||
|Add: Balance of cash and cash|||
||25,181,764.87|10,375,152.87|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||14,421,294.39|13,178,136.00|
|equivalents at the period -end|||

II. Audit report
Whether the first quarterly report had been audited or not
□ Yes√ No
The first quarterly report of the Company had not been audited.