Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 HUBEI SANONDA CO., LTD.
FIRST QUARTER REPORT 2018
Adama Agricultural Solutions Ltd., one of the world's leading crop protection companies, and Hubei Sanonda Co., Ltd. have combined, creating the only integrated, publicly traded Global-China crop protection company.
At ADAMA, we strive to Create Simplicity in Agriculture– offering farmers effective products and services that simplify their lives and help them grow. With one of the most comprehensive and diversified portfolios of differentiated, quality products, our 6,600 strong team reaches farmers in over 100 countries, providing them with solutions to control weeds, insects and disease, and improve their yields.
Please see key additional information and further details included in the Annex.
April 2018
Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 Section I Important Statements
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Hubei Sanonda Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission, and they shall be jointly and severally liable for that.
All directors attended the board session for reviewing this report.
Chen Lichtenstein, company legal representative, Aviram Lahav, Chief Financial Officer& Chief of the accounting organ, hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete.
This Report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 Section II Financial Highlights& Shareholder Changes
I Highlights of accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in accounting policies or correction of accounting errors
√ Yes□ No
The reason for the retroactive adjustments or restatements:
Business combination under common control.
Unit:RMB’000
||||||
|-|-|-|-|-|
|||January-March 2017||+/- (%)|
||January-March 2018||||
|||Before adjustment|After adjustment|After adjustment|
|Operating revenue|6,499,510|655,835|6,343,615|2.46%|
|Net profit attributable to shareholders of the|2,032,027||||
|||58,717|762,710|166.42%|
|Company|||||
|Net profit attributable to shareholders of the|||||
|Company excluding non-recurring profit and|466,066|58,356|58,356|698.66%|
|loss|||||
|Net cash flows from operating activities|-215,819|7,109|37,028|-682.85%|
|Basic EPS (RMB/share)|0.831|0.099|0.326|154.91%|
|Diluted EPS (RMB/share)|N/A|N/A|N/A|N/A|
|Weighted average return on net assets|10.39%|2.89%|4.42%|5.97%|
|||31 December 2017||+/- (%)|
||March 31 2018||||
|||Before adjustment|After adjustment|After adjustment|
|Total assets|39,855,390|39,613,922|39,623,144Note 1|0.59%|
|Net assets attributable to shareholders of the|20,308,267|18,778,013|18,787,235Note 1||
|||||8.10%|
|Company|||||

Note 1:
The amounts specified are 2018 opening balance amounts rather than 2017 closing balance amounts. As of January 1, 2018, the Company began to adopt the revised Accounting Standards for Business Enterprises (“ASBE”) regarding financial instruments and revenue, promulgated by Ministry of Finance in 2017. According to the transitional requirements of relevant revised ASBEs, the opening balances of total assets and net assets attributable to the shareholders of the Company have been adjusted. The total assets and net assets attributable to the shareholders of the Company as at December 31, 2017 wereRMB’000 39,613,922 andRMB’000 18,778,013, respectively.
Please see key additional information and further details included in the Annex.
Non-Recurring profit/loss
√ Applicable□ Not applicable
Unit:RMB’000
||||
|-|-|-|
|Item|January-March 2018|Note|
|Gains/losses on the disposal of non-current assets (including the offset part of|||
||1,997,866||
|asset impairment provisions)|||
|Government grants recognized in the current period, except for those|||
|acquired in the ordinary course of business or granted at certain quotas or|5,491||
|amounts according to the country’s unified standards|||
|Recovery or reversal of provision for bad debts which is assessed|||
||5,277||
|individually during the year|||
|Other non-operating income and expenses other than the above|1,774||
|Less: Income tax effects|444,447||
|Total|1,565,961|--|

Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Profit and Loss,
Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss□ Applicable√ Not applicable
In the reporting period, the Company had no such case that classified extraordinary profit (gain)/loss as defined and listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss as recurring profit (gain)/loss.
Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 II Total number of shareholders and shareholdings of top 10 shareholders at the period-end
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right&
shareholdings of top 10 shareholders at the period-end
Unit: share
||||||||
|-|-|-|-|-|-|-|
|||51,659|||||
|||||Total number of preference|||
|||(the number of ordinary A share|||||
|Total number of ordinary shareholders at the||||shareholders who had resumed their|||
|||shareholders is 35,807;||||0|
|end of the Reporting Period||||voting right at the end of the|||
|||the number of B share|||||
|||||Reporting Period (if any)|||
|||shareholders is 15,852)|||||
|Shareholdings of top 10 shareholders|||||||
||Nature of|Shareholding|Number of|Number of restricted|Pledged or frozen shares||
|Name of shareholder|||||||
||shareholder|percentage|shares held|shares held|Status|Number|
|China National AgrochemicalCo., Ltd.|State-ownedlegal person|74.02%|1,810,883,039|1,810,883,039|||
||||||-|-|
|Jingzhou Sanonda Holding Co.,Ltd.|State-ownedlegal person|4.89%|119,687,202|119,687,202|||
||||||-|-|
|China Cinda Asset ManagementCo., Ltd.|State-ownedlegal person|1.37%|33,557,046|33,557,046|||
||||||-|-|
|China Structural Reform FundCo., Ltd.|State-ownedlegal person|1.37%|33,557,046|33,557,046|||
||||||-|-|
|CCB Principal-ICBC-AvicTrust, Trust Plan of PooledFunds of CCB Principal PrivatePlacement Investment, Tianqi(2016) No. 293 of Avic Trust|Others|0.53%|12,885,906|12,885,906|||
||||||-|-|
|Portfolio No.118 of NationalSocial Security Fund|Others|0.37%|9,004,717|0|||
||||||-|-|
|Industrial Bank Co., Ltd, MixedSecurities Investment Fund,Aegon-Industrial TrendInvestment (LOF)|Others|0.33%|8,053,736|8,053,736|||
||||||-|-|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Foreignlegal person|0.20%|4,923,948|0|||
||||||-|-|
|Penghua Fund-CCB-China LifeInsurance, Private PlacementPortfolio of Penghua FundManagement Co., Ltd Entrustedby China Life Insurance(Group) Company|Others|0.19%|4,697,990|4,697,990|||
||||||-|-|
|Caitong Fund Fuchun ChuangyiPrivate Placement No.3 AssetManagement Plan|Others|0.19%|4,697,986|4,697,986|||
||||||-|-|

Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018
|||||
|-|-|-|-|
|Shareholdings of top 10 non-restricted shareholders||||
||Number of non-restricted shares|Type of shares||
|Name of shareholder||||
||held at the period-end|Type|Number|
|Portfolio 118, National SocialSecurity Fund|9,004,717|||
|||RMB ordinary share|9,004,717|
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED|4,923,948|||
|||Domestically listed foreign share|4,923,948|
|State-owned Assets AdministrationBureau of Qichun County|4,169,266|||
|||RMB ordinary share|4,169,266|
|Wu Feng|2,927,021|RMB ordinary share|2,927,021|
|Portfolio 407, National SocialSecurity Fund|2,833,600|||
|||RMB ordinary share|2,833,600|
|Xie Qingjun|2,706,900|Domestically listed foreign share|2,706,900|
|Shi Yun|2,500,100|RMB ordinary share|2,500,100|
|Xingye Global Fund-ABC-CPIC LifeInsurance, CPIC Life InsurancePrivate Placement Strategic Product(Dividends based on the insuredamount), Entrusted Investment|2,493,609|||
|||RMB ordinary share|2,493,609|
|Xingye Global Fund- NingboBank-Xingquan Specific Strategy No.29|2,419,107|||
|||RMB ordinary share|2,419,107|
|China Merchants Securities HongKong Co., Ltd.|1,981,680|||
|||Domestically listed foreign share|1,981,680|
||Jingzhou Sanonda Holdings Co., Ltd. and CNAC are related parties, and are|||
||acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of|||
|Related or act-in-concert parties|Listed Companies. Sanonda Holding is a wholly-controlled subsidiary of CNAC. It is|||
|among the shareholders above|unknown to the Company whether the other shareholders are related parties or|||
||acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of|||
||Listed Companies.|||
||1) Shareholder Wu Feng held 775,726 shares of the Company through a credit collateral|||
||securities trading account and held 2,151,295 shares of the Company through a|||
|Top 10 ordinary shareholders|common securities account, and therefore held 2,927,021 shares of the Company in|||
|conducting securities margin trading|total.|||
|(if any)|2) Shareholder Shi Yun held 2,500,100 shares of the Company through a credit collateral|||
||securities trading account and held 0 shares of the Company through a common|||
||securities account, and therefore held 2,500,100 shares of the Company in total.|||

 Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conduct any promissory buy-back transaction during the Reporting Period?
□ Yes√ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top 10 of them at the period-end
□ Applicable√ Not applicable
Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 Section III Significant Events
I Changes in main accounting statement items and financial indicators in the Reporting Period, as well as reasons for the changes
√ Applicable□ Not applicable
Unit:RMB’000
||||||
|-|-|-|-|-|
|Assets and liabilities|March 31, 2018|December 31, 2017|+/- (%)|Main reason for change|
|Financial assets at fair value|14,576|23,000|-37%|Realization of financialassets.|
|through profit or loss|||||
|Derivative financial assets|223,303|455,153|-51%|Realization and revaluationof derivatives.|
|Bills receivable|43,216|180,030|-76%|Mainly endorsed tosuppliers.|
|Other receivables|1,480,528|1,037,836|43%|Mainly Increase insubordinated note in respectof securitization transaction|
|Assets held for sale|0|403,297|-100%|Divestment transactioncompleted.|
|Intangible assets|5,799,550|4,036,588|44%|Mainly purchase ofintangible assets fromSyngenta AG.|
|Short term loans|454,212|2,280,912|-80%|Repayment of short termloans.|
|Bills payable|135,321|311,557|-57%|Cheques paid|
|Taxes payable|674,256|431,275|56%|Mainly due to increase inVAT due to seasonaloperations.|
|Interest payable|143,605|46,491|209%|Mainly due to accumulatedbond interest paid on Mayand November each year.|
|Deferred tax liability|434,577|224,613|93%|Mainly due to utilization oflosses carry forward due togain from disposal ofintangible assets.|
|Deferred income|46,131|-|100%|Deferred income related todivestment transaction.|
|Other comprehensive income|-642,921|-154,701|316%|Mainly due to translationeffect of foreign operations.|
|Retained earnings|5,311,930|3,286,711|62%|Mainly net profit.|
|Profit and losses|January - March, 2018|January - March, 2017|+/- (%)|Main reason for change|
||28,749|16,770|71%|Mainly due to stamp taxpayment.|
|Taxes and surcharges|||||
||38,474|435,830|-91%|Mainly due to exchangerates differences.|
|Financing Expense|||||
||-315,266|218,882|-244%|Mainly due to change in thefair value of derivatives.|
|Gains from changes in fair value|||||
||137,676|76,010|81%|Mainly due to realization ofderivatives.|
|Investment income (loss)|||||
|Gain (Loss) from disposal of|1,997,866|-980|203,964%|Gain from disposal ofintangible assets.|
|non-current assets|||||
||2,859|7,123|-60%|Decrease in non-recurringexpenses.|
|Non-operating expenses|||||
||542,652|19,324|2,708%|Mainly due to gain fromdisposal of intangibleassets.|
|Income tax expenses|||||

Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 II Progress on significant events, as well as the influence and solutions
√ Applicable□ Not applicable
The listing date of the newly-issued 104,697,982 shares of the Company issued upon the completion of the capital raise made by the Company of approximately 1.5 billion RMB from equity investors, is January 17, 2018.
It shall be further noted, with respect to the transfers and divestments relating toChemChina’s acquisition of Syngenta AG, that the transaction relating to the receipt of the transferred products from Syngenta AG and concurrent divestment of the products of Adama Agricultural Solutions Ltd. (a wholly-owned subsidiary of the Company), in Europe was successfully completed in the first quarter of 2018.
Please see key additional information and further details included in the Annex.
III None completion of Commitments that should have been completed in the reporting period by the Company, actual controller, shareholders, related parties, acquirer, and other committed parties.□ Applicable√ Not applicable
Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 IV Performance forecast for months 1-6 2018
Warning of possible loss or considerable YoY change in the accumulative net profit made during the year-beginning to the end of the next reporting period, as well as the reasons
□ Applicable√ Not applicable
V Securities investment
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investment in derivative financial instruments
√ Applicable□Not applicable
Unit:RMB’000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Percentage||
|||||||||||||of||
||||||||Investment|Amount||||||
|The party||Related|||||||Amount sold||Investment|investment|Gain/loss|
||Relation|||Initial|||amount at|purchased||Impairment||||
|that||party|||Starting|Expiring|||during the||amount at|amount|during the|
||with the||Type|investment|||beginning|during the||accrued (if||||
|operates the||transaction|||date|date|||reporting||end of the|divided by|reporting|
||Company|||amount|||of the|reporting||any)||||
|investment||or not?|||||||period||period|net asset at|period|
||||||||period|period||||||
|||||||||||||end of the||
|||||||||||||period||
|Banks|No|No|Option|52,274|12/02/2018|04/08/2018|52,274|4,444,376|-2,298,958|No|2,197,692|10.83%|-34,593|
|Banks|No|No|Forward|15,911,923|02/01/2018|25/06/2018|15,911,923|21,145,725|-22,675,461|No|14,382,187|70.90%|-318,327|
|Total||||15,964,197|--|--|15,964,197|25,590,101|-24,974,419||16,579,879|81.73%|-352,920|
|Source of fund for the investment||||Internal||||||||||
|litigation-related situations (if||||||||||||||
|||||N/A||||||||||
|applicable)||||||||||||||
|Date of disclosure of Board approval (if||||||||||||||
|||||N/A||||||||||
|any)||||||||||||||
|Date of disclosure of Shareholders’||||||||||||||
|||||N/A||||||||||
|approval (if any)||||||||||||||
|||||The aforesaid refers to short term hedging currency transactions made with banks.||||||||||
|||||The Group’s transactions are not traded in the market. The Transactions are between the applicable company in the||||||||||
|||||Group and the applicable bank until the expiration date of the transaction, therefore no market risk is involved.||||||||||
|||||Regarding credit and liquidity risk, the Group is working with large and substantial banks only and with some of||||||||||
|||||them the Group has ISDA agreements.||||||||||
|||||As to operational risk, the Group is working with approved software, which is its back office for all transactions.||||||||||
|Risk and control analysis for the||||No legal risk is involved.||||||||||
|reporting period (including but not||||The controls taken in order to further reduce said risks are:||||||||||
|limited to market risk, liquidity risk,|||| The relevant subsidiaries have specific guidelines, under the Group’s policy, which were approved by||||||||||
|credit risk, operational risk, legal risk,||||the subsidiaries' financial statements committee of the board, which specifies, inter alia, the hedging||||||||||
|etc.)||||policy, the persons that has the authorization to deal with hedging, the tools, ranges etc. The only||||||||||
|||||subsidiary that has hedging positions in the Group in the period was Adama Solutions and its||||||||||
|||||subsidiaries.||||||||||
||||| The relevant subsidiaries apply local SOX audits that audit the working process and the controls of the||||||||||
|||||hedging transactions, in addition to the quarterly audit.||||||||||
||||| The controllers of the relevant subsidiaries are involved and monitor the hedging accounting treatment.||||||||||
||||| Every 2-3 years the internal audit of the relevant subsidiaries department is auditing all the procedure.||||||||||
|||||The aforesaid refers to short time hedging currency transactions made by the relevant subsidiary with banks.||||||||||
|Market price or fair value change of||||||||||||||
|||||Segregation of duties as follows:||||||||||
|investments during the reporting period.||||||||||||||
|||||For the fair value evaluation, the relevant subsidiary is using external experts. The relevant subsidiary hedges||||||||||
|Specific methodology and assumptions||||||||||||||
|||||currencies only; the relevant transactions are simple (Options and forwards) for up to 1.5 years. Therefore, the||||||||||
|should be disclosed in the analysis of||||||||||||||
|||||valuation is straight forward, and the exchange rates are provided by the accounting department of the relevant||||||||||
|fair value of the investments||||||||||||||
|||||subsidiary and all other parameters are provided by the experts.||||||||||
|Explanation for any significant changes||||||||||||||
|in accounting policies and principles,||||N/A||||||||||
|compared with last reporting period||||||||||||||
|Independent Directors’ opinion on the||||||||||||||
|investment in derivative financial||||N/A||||||||||
|instruments and related risk controls||||||||||||||

Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 VII Visits paid to the Company for purposes of research, communication, interview, etc. during the Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|About|
||||Introduced the Company's overall|
||On Site Research (One to|||
|January 4, 2018||Institutional Investors|situation and business development after|
||Many)|||
||||the merger of Adama and Sanonda.|
||||Introduced the Company's overall|
|January 22, 2018|Roadshow (One to Many)|Institutional Investors|situation and business development after|
||||the merger of Adama and Sanonda.|
||||Introduction on the relevant contents of|
|January 30, 2018|Call (One to Many)|Institution and individual|the pre-announcement on the 2017|
||||performance|
||||Introduced the Company's overall|
|February 8 to 9, 2018|Roadshow (One to Many)|Institutional Investors|situation and business development after|
||||the merger of Adama and Sanonda.|
||On Site Research (One to||Communication on the 2017|
|March 28, 2018||Institutional Investors||
||Many)||performance of the Company|
||||Communication on the 2017|
|March 29 to 30, 2018|Roadshow (One to Many)|Institutional Investors||
||||performance of the Company|

VIII Illegal provision of guarantees for external parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s funds by the controlling shareholder or its related parties for non-operating purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Hubei Sanonda Co., Ltd.
31 March 2018
Unit:RMB’000
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Cash at bank and on hand|5,605,252|7,868,858|
|Financial assets at fair value through profit and loss|14,576|23,000|
|Derivative financial assets|223,303|455,153|
|Bills receivable|43,216|180,030|
|Accounts receivable|6,355,002|5,077,632|
|Prepayments|243,711|202,111|
|Other receivables|1,480,528|1,037,836|
|Inventories|7,844,076|7,488,238|
|Assets held for sale|-|403,297|
|Non-current assets due within one year|44|46|
|Other current assets|512,898|614,925|
|Total current assets|22,322,606|23,351,126|
|Non-current assets:|||
|Available-for-sale financial assets|19,124|19,544|
|Long-term receivables|176,180|192,968|
|Long-term equity investments|94,617|102,383|
|Investment property|4,330|4,408|
|Fixed assets|5,950,653|6,141,490|
|Construction in progress|812,213|803,421|
|Intangible assets|5,799,550|4,036,588|
|Goodwill|3,747,280|3,890,097|
|Deferred tax assets|720,009|879,452|
|Other non-current assets|208,828|201,667|
|Total non-current assets|17,532,784|16,272,018|
|Total assets|39,855,390|39,623,144|
|Current liabilities:|||
|Short-term loans|454,212|2,280,912|
|Derivative financial liabilities|782,623|789,050|
|Bills payable|135,321|311,557|
|Accounts payable|4,510,970|3,906,481|
|Advances from customers|179,382|226,711|
|Employee benefits payable|878,638|995,637|
|Taxes payable|674,256|431,275|
|Interest payable|143,605|46,491|
|Dividends payable|250|250|
|Other payables|1,571,612|1,375,993|
|Non-current liabilities due within one year|390,391|448,504|
|Other current liabilities|495,365|482,583|
|Total current liabilities|10,216,625|11,295,444|

Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Non-current liabilities:|||
|Long-term loans|471,722|514,320|
|Debentures payable|7,362,573|7,777,410|
|Long-term payables|22,876|24,203|
|Long-term employee benefits payables|595,249|610,714|
|Provisions|166,680|163,913|
|Deferred income|46,131|-|
|Deferred tax liabilities|434,577|224,613|
|Other non-current liabilities|230,690|225,292|
|Total non-current liabilities|9,330,498|9,540,465|
|Total liabilities|19,547,123|20,835,909|
|Owners’ equity:|||
|Share capital|2,446,554|2,446,554|
|Capital reserves|12,972,906|12,982,277|
|Other comprehensive income|(642,921)|(154,701)|
|Special reserves|11,975|9,349|
|Surplus reserves|207,823|207,823|
|Retained earnings|5,311,930|3,295,933|
|Total equity attributable to owners of the Company|20,308,267|18,787,235|
|Total owners’ equity|20,308,267|18,787,235|
|Total liabilities and owners’ equity|39,855,390|39,623,144|

 Legal representative: Chen Lichtenstein;
Chief of the accounting work: Aviram Lahav;
Chief of the accounting organ: Aviram Lahav.
Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 2. Balance sheet of the Company
Unit:RMB’000
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Cash at bank and on hand|2,043,030|1,868,603|
|Bills receivable|14,013|146,525|
|Accounts receivable|954,321|850,034|
|Prepayments|43,424|24,019|
|Other receivables|1,794|1,140|
|Inventories|117,594|177,402|
|Other current assets|566|1,406|
|Total current assets|3,174,742|3,069,129|
|Non-current assets:|||
|Available-for-sale financial assets|8,572|8,573|
|Long-term equity investments|15,939,826|15,939,826|
|Investment property|4,330|4,408|
|Fixed assets|1,226,683|1,262,330|
|Construction in progress|100,884|81,993|
|Intangible assets|182,668|183,920|
|Deferred tax assets|35,657|35,826|
|Other non-current assets|12,977|11,000|
|Total non-current assets|17,511,597|17,527,876|
|Total assets|20,686,339|20,597,005|
|Current liabilities:|||
|Short-term loans|20,000|70,000|
|Bills payable|38,000|23,000|
|Accounts payable|250,259|234,615|
|Advances from customers|42,114|63,904|
|Employee benefits payable|23,878|30,491|
|Taxes payable|61,553|19,301|
|Interest payable|180|105|
|Dividends payable|250|250|
|Other payables|500,046|482,503|
|Non-current liabilities due within one year|100,000|126,590|
|Total current liabilities|1,036,280|1,050,759|
|Non-current liabilities:|||
|Long-term loans|72,000|72,000|
|Long-term employee benefits payables|91,151|93,025|
|Estimated liabilities|15,671|15,671|
|Other non-current liabilities|171,770|171,770|
|Total non-current liabilities|350,592|352,466|
|Total liabilities|1,386,872|1,403,225|
|Owners’ equity:|||
|Share capital|2,446,554|2,446,554|
|Capital reserves|15,413,663|15,423,034|
|Special reserves|11,951|10,040|
|Surplus reserves|207,823|207,823|
|Retained earnings|1,219,476|1,106,329|
|Total owners’ equity|19,299,467|19,193,780|
|Total liabilities and owners’ equity|20,686,339|20,597,005|

Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 3. Consolidated income statement
Unit:RMB’000
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Total operating Income|6,499,510|6,343,615|
|Including: Operating income|6,499,510|6,343,615|
|2. Total operating costs|5,747,252|5,853,576|
|Including: Cost of sales|4,241,098|4,055,998|
|Taxes and surcharges|28,749|16,770|
|Selling and Distribution expenses|1,081,703|1,034,874|
|General and Administrative expenses|328,748|279,567|
|Financial expenses, net|38,474|435,830|
|Impairment losses, net|28,480|30,537|
|Add: Gains (loss) from changes in fair value|(315,266)|218,882|
|Investment income (loss), net|137,676|76,010|
|Including: Income (loss) from investment in associates and joint ventures|(5,646)|2,815|
|Gain (loss) from disposal of assets|1,997,866|(980)|
|3. Operating profit|2,572,534|783,951|
|Add: Non-operating income|5,004|5,206|
|Less: Non-operating expenses|2,859|7,123|
|4. Total profit|2,574,679|782,034|
|Less: income tax expenses|542,652|19,324|
|5. Net profit|2,032,027|762,710|
|Net profit attributable to shareholders of the Company|2,032,027|762,710|
|6. Other comprehensive income net of tax|(488,220)|(91,584)|
|Other comprehensive income net of tax attributable to shareholders of the|||
||(488,220)|(91,584)|
|Company|||
|6.1 Items that will not be reclassified into profit/loss|2,205|(310)|
|6.1.1 Re-measurement of defined benefit plan liability|2,205|(310)|
|6.2 Items that were or will be reclassified to profit or loss|(490,425)|(91,274)|
|6.2.4 Effective portion of gains or loss of cash flow hedge|81,077|(99,725)|
|6.2.5 Translation differences of foreign financial statements|(571,502)|8,451|
|7. Total comprehensive income for the period|1,543,807|671,126|
|Attributable to shareholders of the Company|1,543,807|671,126|
|8. Earnings per share|||
|8.1 Basic earnings per share (RMB/ share)|0.831|0.326|
|8.2 Diluted earnings per share (RMB/ share)|N/A|N/A|

 Legal representative: Chen Lichtenstein;
Chief of the accounting work: Aviram Lahav;
Chief of the accounting organ: Aviram Lahav
Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018 4. Income statement of the Company
Unit:RMB’000
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Operating income|837,781|644,152|
|Less: Operating costs|614,109|516,459|
|Taxes and surcharges|14,642|3,770|
|Selling and Distribution expenses|30,261|20,168|
|General and administrative expenses|36,141|23,587|
|Financial expenses, net|6,092|4,258|
|Impairment losses|2,957|3,760|
|2. Operating profit|133,579|72,150|
|Add: Non-operating income|238|830|
|Less: Non-operating expenses|4|677|
|3. Total profit|133,813|72,303|
|Less: Income tax expense|20,667|18,285|
|4. Net profit|113,146|54,018|
|4.1 Net profit from continuing operations|113,146|54,018|
|4.2 Net profit from discontinued operations|-|-|
|5. Other comprehensive income net of tax|||
|5.1 Items that will not be reclassified into profit/loss|-|-|
|5.2 Items that were or will be reclassified to profit or loss|-|-|
|6. Total comprehensive income|113,146|54,018|

 5. Consolidated cash flow statement
Unit:RMB’000
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash flows from operating activities:|||
|Cash received from sale of goods and rendering of services|4,913,941|4,706,108|
|Refund of taxes and surcharges|5,281|13,544|
|Cash received relating to other operating activities|135,006|191,888|
|Sub-total of cash inflows from operating activities|5,054,228|4,911,540|
|Cash paid for goods and services|3,132,348|2,957,686|
|Cash paid to and on behalf of employees|806,849|671,646|
|Payments of taxes and surcharges|99,773|54,665|
|Cash paid relating to other operating activities|1,231,077|1,190,515|
|Sub-total of cash outflows from operating activities|5,270,047|4,874,512|
|Net cash flows from operating activities|(215,819)|37,028|
|2. Cash flows from investing activities:|||
|Cash received from disposal of investments|7,470|20,544|
|Cash received as return on investments|-|3,014|
|Net cash received from disposal of fixed assets, intangible assets and other|2,411,752|2,051|
|long-term assets|||
|Cash received from other investing activities|-|13,049|
|Sub-total of cash inflows from investing activities|2,419,222|38,658|
|Cash paid to acquire fixed assets, intangible assets and other long-term assets|2,373,708|323,623|
|Sub-total of cash outflows from investing activities|2,373,708|323,623|
|Net cash flows from investing activities|45,514|(284,965)|
|3. Cash flows from financing activities:|||
|Cash received from borrowings|-|100,000|
|Cash received relating to other financing activities|-|7,800|
|Sub-total of cash inflows from financing activities|-|107,800|
|Cash repayment of borrowings|1,836,276|324,811|
|Cash payment for dividends, profit distributions or interest|42,028|85,581|

Hubei Sanonda Co., Ltd. Full Content of the First Quarter Report 2018
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|Including: dividends or profit paid by subsidiaries to minority interests|16,028|29,230|
|Cash paid relating to other financing activities|7,555|100,000|
|Sub-total of cash outflows from financing activities|1,885,859|510,392|
|Net cash flows from financing activities|(1,885,859)|(402,592)|
|4. Effect of foreign exchange rate changes on cash and cash equivalents|(210,892)|(20,245)|
|5. Net increase (decrease) in cash and cash equivalents|(2,267,056)|(670,774)|
|Add: Cash and cash equivalents at the beginning of the period|7,864,258|3,833,747|
|6. Cash and cash equivalents at the end of the period|5,597,202|3,162,973|

 6. Cash flow statement of the Company
Unit:RMB’000
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash flows from operating activities:|||
|Cash received from sale of commodities and rendering of service|636,451|246,069|
|Tax refunds received|-|2,884|
|Cash received from other operating activities|6,835|1,061|
|Subtotal of cash inflows from operating activities|643,286|250,014|
|Cash paid for goods and services|267,037|237,938|
|Cash paid to and for employees|49,453|51,441|
|Taxes and fares paid|15,462|8,768|
|Cash paid for other operating activities|27,075|33,028|
|Subtotal of cash outflows from operating activities|359,027|331,175|
|Net cash flows from operating activities|284,259|(81,161)|
|2. Cash flows from investing activities:|||
|Cash paid to acquire fixed assets, intangible assets and other long-term assets|12,582|20,822|
|Subtotal of cash outflows from investing activities|12,582|20,822|
|Net cash flows from investing activities|(12,582)|(20,822)|
|3. Cash flows from financing activities:|||
|Cash received as borrowings|-|50,000|
|Cash received from other financing activities|-|7,800|
|Subtotal of cash inflows from financing activities|-|57,800|
|Repayment of borrowings|76,590|32,500|
|Cash paid for interest expenses and distribution of dividends or profit|2,680|4,224|
|Cash paid for other financing activities|7,555|100,000|
|Sub-total of cash outflows from financing activities|86,825|136,724|
|Net cash flows from financing activities|-86,825|-78,924|
|4. Effect of foreign exchange rate changes on cash and cash equivalents|-13,876|1|
|5. Net increase in cash and cash equivalents|170,976|-180,906|
|Add: cash and cash equivalents at the beginning of the period|1,864,003|249,741|
|6. Cash and cash equivalents at the end of the period|2,034,979|68,835|

 IIAuditor’s report
Is this Report audited?
□ Yes√ No
This Report is unaudited.
Hubei Sanonda Co., Ltd.
26 April 2018