ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. Tsann Kuen (China) Enterprise Co., Ltd.
Report for the First Quarter of 2018
April 2018
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. Section I Important Statements
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Tsann Kuen (China) Enterprise 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 liableforthat.
All directors attended theboardsession forreviewing thisreport.
Mr. Pan Zhirong, company principal, and Mr. Feng Zhiqing, head of the accounting work& the accounting division (head of accounting) jointly declare that the financial statements carried in thisreportare factual, accurate and complete.
This Report is prepared in both Chinese and English. Should there be any discrepancy between thetwo versions, theChineseversion shall prevail.
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. Section II Company Profile
I Keyfinancial results
Whether theCompany performedanyretroactiveadjustmentstoorrestatementofitsaccountingdataduetochangesof accounting policiesorcorrectionofaccountingerrors
□Yes√No
Unit:RMB
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|-|-|-|-|
|Item|January-March2018|January-March2017|+/-%|
|Operatingrevenues|319,364,654.64|454,378,577.36|-29.71|
|NetprofitattributabletoshareholdersoftheCompany|-21,878,234.79|6,800,900.65|-421.70|
|NetprofitattributabletoshareholdersoftheCompanybeforeexceptionalprofitandloss|-27,785,628.47|5,620,130.15|-594.39|
|Netoperatingcashflow|-8,842,593.74|3,169,455.03|-378.99|
|Basicearningspershare(RMB/share)|-0.12|0.04|-400.00|
|Dilutedearningspershare(RMB/share)|-0.12|0.04|-400.00|
|Weightedaveragereturnonequity(%)|-0.04|1.10|-1.14|
|Item|31March2018|31December2017|+/-%|
|Totalassets|1,625,804,755.14|1,778,825,153.51|-8.60|
|Net assets attributable to shareholders of theCompany|586,422,273.11|610,814,327.77|-3.99|

Totalsharecapitaluptotheformertradingdatebeforethedisclosure:
|||
|-|-|
|Totalsharecapitaluptotheformertradingdatebeforethedisclosure(share)|185,391,680|
|FullydilutedEPScalculatedbythenewestsharecapital(RMB/share)|-0.12|

 Exceptionalprofitandloss
√Applicable□Notapplicable
Unit:RMB
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|-|-|-|
|Item|January-March2018|Note|
|Profit/lossondisposalofnon-currentassets(includingoffsetamountofassetimpairmentprovisions)|327,372.40||
|Tax rebates, reductions and exemptions due to approval beyondauthorityorthelackofofficialapprovaldocuments|||
|Government grants charged to the profit/loss for the Reporting Period(exceptfor thegovernmentgrantscloselyrelatedtothebusinessofthe|1,255,697.00||

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
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|-|-|-|
|Item|January-March2018|Note|
|Company andgivenat afixed quotaoramountinaccordancewiththeState’suniformstandards)|||
|Capitaloccupationchargesonnon-financialenterprisesthatarechargedtotheprofit/lossfortheReportingPeriod|||
|Profit due to the situation where investment costs for the Company toobtain subsidiaries, associates and joint ventures are lower than theenjoyablefairvalueofidentifiablenetassetsofinvesteeswhenmakinginvestments|||
|Profit/lossonnon-monetaryassetswap|||
|Profit/lossonentrustingotherswithinvestmentsorassetmanagement|||
|AssetimpairmentprovisionsduetoactsofGodsuchasnaturaldisasters|||
|Profit/lossondebtrestructuring|||
|Restructuringcostsinstaffarrangement,integration,etc.|||
|Profit/loss on the part over the fair value due to transactions withdistinctlyunfairprices|||
|Reporting Period net profit/loss of subsidiaries acquired throughbusiness mergers under the same control from period-beginnings tomergerdates|||
|Profit/loss on contingencies irrelevant to the Company’s normalbusinessactivities|||
|Profit/loss on fair value changes of transactional financial assets andliabilities & investment profit on disposal of transactional financialassetsandliabilitiesaswellasfinancialassetsavailableforsale,exceptfor effectively hedging business related to normal business operationsoftheCompany|7,426,504.29|Mainlytheinvestmentincomeofsalesofforwardforeignexchangecontract,incomefromchangesinfairvalue,andothercurrentassetsincomefromwealthmanagementproducts|
|Impairment provision reversal for accounts receivable on which theimpairmenttestiscarriedoutseparately|||
|Profit/lossonentrustedloans|||
|Profit/loss on fair value changes in investing properties of which thesubsequentmeasurementiscarriedoutadoptingthefairvaluemethod|||
|Effect on Reporting Period profit/loss when a one-off adjustment ismade to Reporting Period profit/Loss according to requirements oftaxation,accountingandotherrelevantlawsandregulations|||

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
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|-|-|-|
|Item|January-March2018|Note|
|Custodyfeeincomewhenentrustedwithoperations|||
|Non-operatingincomeandexpenseotherthantheabove|251,523.42||
|Otherprofit/lossthatmeetthedefinitionofexceptionalprofit/loss|||
|Less:Incometaxeffects|1,388,031.68||
|Minorityinterestseffects(aftertax)|1,965,671.75||
|Total|5,907,393.68||

Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the ExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalProfitandLoss, orreclassifiedanyexceptionalprofit/lossitemgivenasanexampleinthesaidexplanatoryannouncementtorecurrentprofit/loss□Applicable√Notapplicable
II Total number ofshareholders atthe period-endand shareholdingsoftop ten shareholders 1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as shareholdingsoftoptenshareholders
Unit:share
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|-|-|-|-|-|-|-|
|Total number of commonshareholdersattheperiod-end|16,646||Total number of preference shareholders withresumedvotingrightsattheperiod-end|||0|
|Shareholdingsoftoptenshareholders|||||||
|Nameofshareholder|Natureofshareholder|Shareholdingpercentage(%)|Numberofsharesheld|Numberofnon-circulatingsharesheld|Pledgedorfrozenshares||
||||||Statusofshares|Numberofshares|
|FORDCHEEDEVELOPMENTLIMITED|Foreigncorporation|29.10%|53,940,530|0|N/A|0|
|EUPAINDUSTRYCORPORATIONLIMITED|Foreigncorporation|13.09%|24,268,840|0|N/A|0|
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreigncorporation|4.96%|9,196,449|0|N/A|0|
|FILLMANINVESTMENTSLIMITED|Foreigncorporation|2.49%|4,621,596|0|N/A|0|
|CHINAEVERBRIGHTSECURITIES(HONGKONG)CO.,|Foreigncorporation|1.06%|1,972,523|0|N/A|0|

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
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|-|-|-|-|-|-|-|-|-|-|
|LTD.||||||||||
|SHENWAN HONGYUANSECURITIES(HK)CO.,LTD.|Foreigncorporation||1.06%|1,956,752||0|N/A||0|
|CHENYONGQUAN|Domesticindividual||1.02%|1,897,343||0|N/A||0|
|CHENYONGQING|Foreignindividual||0.80%|1,488,949||0|N/A||0|
|CHENLIJUAN|Foreignindividual||0.72%|1,330,434||0|N/A||0|
|DINGXIAOLUN|Domesticindividual||0.59%|1,103,000||0|N/A||0|
|Shareholdingsoftoptencirculatingshareholders||||||||||
|Nameofshareholder||Numberoflistedcirculatingsharesheld|||Varietyofshares|||||
||||||Variety|||Number||
|FORDCHEEDEVELOPMENTLIMITED||53,940,530|||Domestically listedforeignshares|||53,940,530||
|EUPAINDUSTRYCORPORATIONLIMITED||24,268,840|||Domestically listedforeignshares|||24,268,840||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED||9,196,449|||Domestically listedforeignshares|||9,196,449||
|FILLMANINVESTMENTSLIMITED||4,621,596|||Domestically listedforeignshares|||4,621,596||
|CHINAEVERBRIGHTSECURITIES(HONGKONG)CO.,LTD.||1,972,523|||Domestically listedforeignshares|||1,972,523||
|SHENWAN HONGYUAN SECURITIES(HK)CO.,LTD.||1,956,752|||Domestically listedforeignshares|||1,956,752||
|CHENYONGQUAN||1,897,343|||Domestically listedforeignshares|||1,897,343||
|CHENYONGQING||1,488,949|||Domestically listedforeignshares|||1,488,949||
|CHENLIJUAN||1,330,434|||Domestically listedforeignshares|||1,330,434||
|DINGXIAOLUN||1,103,000|||Domestically listedforeignshares|||1,103,000||
|Related or acting-in-concert parties amongtheaboveshareholders||The first, the second and the fourth largest shareholders are the Company’s corporatecontrollingshareholders. It isunknown to the Company whether thereexists associatedrelationship among the shareholders above or they are acting-in-concert entities asstipulated in the Administrative Measures on Information Disclosure of Changes inShareholdingofListedCompanies.||||||||

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. Did any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conduct any promissoryrepoduringtheReportingPeriod?
□Yea√No
NosuchcasesintheReportingPeriod.
2.Totalnumberofpreferenceshareholdersandshareholdingsofthetoptenofthem
□Applicable√Notapplicable
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. Section III Significant Events
I Changes in major accounting statement items and financial indicators for the Reporting Period, as well asreasons forsuch changes
√Applicable□Notapplicable
Unit:RMB
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|-|-|-|-|-|
|Item|31March2018|31December2017|+/-%|Mainreasonforchange|
|Financial assets measured at fairvalue with fair value changesincluded in the profit and lossfortheReportingPeriod|5,449,550.00|3,925,850.00|38.81|Evaluatedgainsonforwardforeignexchangecontractsincurrentperiod|
|Accountsreceivable|166,051,743.35|270,052,420.89|-38.51|Decreaseinoperatingrevenuesincurrentperiod|
|Interestreceivable|1,529,753.57|0.00|100.00|Interestreceivableontermdepositsincurrentperiod|
|Otheraccountsreceivable|23,508,562.57|35,318,724.60|-33.44|Decreaseinexporttaxrebatesincurrentperiod|
|Constructioninprogress|4,119,696.54|2,059,623.18|100.02|Plantrenovationawaitingacceptance|
|Long-termdeferredexpenses|6,047,050.35|4,388,248.42|37.80|Increase in amortized expenditure on plant renovation incurrentperiod|
|Short-termborrowings|15,564,600.41|10,832,951.89|43.68|Increaseinbankborrowingsincurrentperiod|
|Notespayable|29,532,657.35|20,024,149.15|47.49|Increaseinbankacceptancebillsincurrentperiod|
|Accountsreceivedinadvance|24,918,125.10|11,661,974.88|113.67|Increaseinadvancesfromcustomersincurrentperiod|
|Taxesandfarespayable|3,864,727.20|2,824,721.65|36.82|IncreaseinVATpayableincurrentperiod|
|Interestpayable|16,244.36|1,448.76|1,021.26|Increase in interest payable resulted from increased bankborrowingsincurrentperiod|
|Othercomprehensiveincome|2,106,001.00|4,619,820.87|-54.41|Decrease in income from translation offoreign-currency-denominated financial statements incurrentperiod|

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|-|-|-|-|-|
|Item|January-March2018|January-March2017|+/-%|Mainreasonforchange|
|Operatingrevenues|319,364,654.64|454,378,577.36|-29.71|Decreaseinoperatingrevenuesincurrentperiod|
|Financecosts|11,665,399.89|1,738,365.97|571.06|Increaseinunrealized,evaluatedforeignexchangelossincurrentperiod|
|Assetimpairmentloss|-1,776,486.26|-1,181,070.83|50.41|Increase in reversed portion of allowance for doubtfulaccounts resulted from collection of payments fromcustomersincurrentperiod|
|Gainsonfairvaluechanges|1,523,700.00|0.00|100.00|Noforward foreignexchangecontractsinsame periodoflastyear|
|Investmentincome|5,902,804.29|213,698.63|2,662.21|Gainsondeliveredforwardforeignexchangecontractsincurrentperiod|
|Assetdisposalincome|327,372.40|172,996.23|89.24|Increaseinincomefromsaleofassetsincurrentperiod|
|Otherincome|1,255,697.00|516,075.00|143.32|Increaseingovernmentsubsidiesincurrentperiod|
|Non-operatingrevenue|281,354.88|1,000,457.93|-71.88|Same period of last year seeing receipt of wind damagecompensation and TKS Phase III receiving defaultcompensationaslessee|
|Non-operatingexpense|29,831.46|56,900.45|-47.57|Sameperiodoflastyearseeingdonationstostudents|
|Corporateincometax|348,766.94|3,622,669.95|-90.37|Decreaseinprofitincurrentperiod|
|Netoperatingcashflow|-8,842,593.74|3,169,455.03|-378.99|Decreaseinoperatingrevenuesincurrentperiod|
|Netfinancingcashflow|-6,164,673.70|21,832,513.50|-128.24|Same period of last year seeing a higher amount ofborrowings|

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. II Progress ofsignificanteventsandanalysis&explanationson theirinfluenceandsolutions√Applicable□Notapplicable
(I)Contingencies
(1)As MTN Products, Inc. / Water Solutions (Hong Kong) Ltd. ("MTN / WSL") did not pay the relevant payment in time and fulfilltheorderaccordingtothecontract,thesubsidiaryoftheCompany,TsannKuen(Zhangzhou)EnterpriseCo.,Ltd.submittedthe indictmenttotheSUPERIORCOURTOFCALIFORNIACOUNTYOFLOSANGELESon23November2016tosueMTN/WSL forpaymentofUSD707,522.92andUSD1,402,940forreservelosses,totalingUSD2,110,462.92.Asofthereportingdate,thecaseis stillpending.
(2)As PhilipsLighting (China) Investment Co., Ltd. ("Philips Lighting") did not pay the relevant payment in accordance with the relevant agreement, the Company's subsidiary TsannKuen (Zhangzhou) Enterprise Co., Ltd. (hereafter, TKL), submitted the indictmenton23November2016toLonghaiCityPeople'sCourt,requestingthepaymentofCNY2,499,658.4.On12January2018, TKLreceivedthefirstinstancejudgmentfromthecourtthatPhilipsshouldpayCNY423,345.63andoverdueinteresttoTKL.TKL hasfiledanappeal.
(3) TSANN KUEN (CHINA) ENTERPRISE CO., LTD. (therefore "TKC") and TianYuan (Xiamen)Asset Management Co., Ltd. (therefore"Tianyuan")signedthe"LandLeaseContract(NorthwestCorner)"and“HousingLeaseContract(NorthBuilding)"on26 June2013,signedthe"LandLeaseContract(southeastcorner)","HousingLeaseContract(HuarongRoad23)"(partofthehouse)on 29July2013.TKCleasedthepartofthelandandhouseonXinglongRoad88toTianyuanforbusinessactivities,partofthesiteand housingleasedtoTianYuanCompanyforbusinessactivities.
AsTianyuan didnot pay therent in accordancewith thecontract in time and unauthorized useoftheleased property,TKC filed a lawsuit in Xiamen Huli District People's Court to pay the relevant rent. On 29 December 2015, People's Court of Huli District of XiamenCityruledthatthefourcaseswillbemerged.On30May2017People'sCourtofHuliDistrictofXiamenCitymadearuling offirstinstance:ItruledthatTianyuanCompanypaidliquidateddamagesofoverduepaymentoftheCompany.TianyuanCompany filedanappeal.Asofthereportingdate,thecaseisstillpending.
(4) The subsidiary of the Company - TsannKuen (Zhangzhou) Enterprise Co., Ltd. (hereafter, TKL) signed the< Product SupplyAgreement>withXindaElectromechanicsCo.,Ltd.(hereafter,Xinda)on20July2009.Thevalidityofthecontractisfrom1July 2009 to 30 June 2012. Furthermore, on 1 January 2011, they signed the<TsannKuen(Zhangzhou) Enterprise Co., Ltd. 2011 ED ProcurementContract> and relevant<SpecialArrangementClauses>, and other agreements.According to those agreements, TKL shouldpurchaseproductsfromXinda.TKLrejectedtopayforthepurchaseandterminatedthoseagreementsduetothepoorquality products from Xinda. On 23 December 2011, Xinda lodged petition for civil litigation to the IntermediatePeople’s Court of Zhangzhou for the order of IntermediatePeople’s Court of Zhangzhou that TKL pay for purchase from Xinda amounting to USD 479,089.06(CNY3,071,535.78)immediatelytogetherwiththeliquidateddamagesfordelaypaymentandresumeperformanceofthe agreement(thevalueoftheunperformedagreementamountingtoUSD189,423.25).
On 8January2012,TKLlodgedcounterclaim totheCourt claimingthatduetounsatisfactory qualityof goodssuppliedbyXinda,
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. goods supplied by TKL had been returned from clients and orders cancelled, resulting in substantial financial loss and reputation damage suffered bytheTKL.TKLthereforepetitionedfor thecourtorder for relief ofagreement andthat Xindashall paytoTKL liquidateddamageamountingtoCNY1milliontogetherwithfinanciallossamountingtoCNY7.6216million.
IntermediatePeople’sCourtofZhangzhoumadethejudgmenton15August2013asfollow:
a.TKLshouldpaygoodspaymentsamountUSD479,089.06toplaintiffXindawithin15daysfromthedateonwhichthejudgment becomeseffective,equivalenttoCNY3,071,535.78.
b. Plaintiff Xinda and the third party BoLuo Lianyuan industry Co., Ltd. (hereafter Lianyuan) should jointly pay the laquidated damageforCNY1,233,399.70toTKLwithin15daysfromthedateonwhichthejudgmentbecomeseffective.
c.Unperformed10ordersenteredintobyTKL,XindaandLianyuanaredeclaredcancelled.
d.RejectotherclaimspartitionedbytheplaintiffXinda.
e.RejectotherclaimspartitionedbyTKL.Afterthefirstjudgment,bothpartiesappealedagainstthejudgment.
HigherPeople'sCourtofFujianProvincemadethefinaljudgmenton15December2016withthefollowingverdict::
a.Verdictc,d,efromthefirstjudgmentremainunchanged.
b.Verdictafromthefirst judgment changed as:TKLshouldpaygoodspaymentsamountCNY2,375,547.92Xindawithin15days fromthedateonwhichthejudgmentbecomeseffective.
c.Verdictbfromthefirstjudgmentchangedas:XindaandBoLuoLianyuanindustryCo.,Ltd.ShouldjointlypayTKLthelaquidated damageforCNY537,411.84within15daysfromthedateonwhichthejudgementbecomeseffective.
TheflawedmotorsuppliedbyXindaandLianyuantotalled103,638,23,035ofthemwaspickedoutin(2012)ZhangminchuziCase No.8,theCompanyconductedanothernotarypickoutontheremainingflawedmotorsduringthesecondinstance,totalled80,603. TKLlodged petitionfor civil litigation on 18January 2017, based onthe judgments from (2012) Zhangminchuzi Case No.8,TKL asks for the order of that Xinda and Lianyuan return the corresponding goods payments of the 80,603 flawed motors, along with compensationforotherlossescausedbythis.Thecaseisstillpending.
(II)ProgressofcapitalincreasefromTKLtoitssub-subsidiaryTsannkuenEdgeIntelligence
Resolutiononthe1stSpecialMeetingofBoardofDirectorsfor2018convenedonFebruary1,2018bytheCompanyapprovedthe capital increase from controllingsubsidiaryTKLto itssub-subsidiaryTsannkuenEdge Intelligence. For details, seeAnnouncement ontheCapitalIncreasefromControllingSubsidiaryTKLtoitsSub-subsidiaryTsannkuenEdgeIntelligencepublishedonSecurities TimesandHongKongTaKungPao,andhttp://www.cninfo.com.cnonFebruary2,2018.
(III)Progressofchanges inusage of originalpart of capitalincrease of its sub-subsidiary Pt.StarComgistic IndonesiabyTKL
Resolutiononthe1stSpecialMeetingofBoardofDirectorsfor2018convenedonFebruary1,2018bytheCompanyapprovedthe Usageoforiginalpartofcapital increaseofitssub-subsidiaryPt.Star ComgisticIndonesia(referred toas“SCI”) bythechangesof controllingsubsidiary.Fordetails,seeAnnouncementontheUsageofOriginalPartofCapitalIncreaseofitsSub-subsidiarySCIby
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. the Changes of Controlling Subsidiary TKL published on Securities Times and Hong Kong Ta Kung Pao, and http://www.cninfo.com.cnonFebruary2,2018.Itisintheprocessofapprovalnow.
(IV)EstablishingSubsidiary
TheControllingSubsidiaryTKLplannedtoestablishedwholly-ownedsubsidiaryTsannKuen(Zhangzhou)InvestmentCo.,Ltd.For details,seeAnnouncementonthePlanningforEstablishmentofWholly-ownedSubsidiarybyControllingSubsidiaryTKLpublished onSecuritiesTimesandHongKongTaKungPao,andhttp://www.cninfo.com.cnonApril28,2018.
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|-|-|-|
|Overviewofsignificantevent|Disclosuredate|Websitewheretherelevantcurrentannouncementisdisclosed|
|Announcement on the Capital Increase from ControllingSubsidiary TKL to its Sub-subsidiary Tsannkuen EdgeIntelligence|2February2018|www.cninfo.com.cn|
|Announcement on the Usage of Original Part of CapitalIncrease of its Sub-subsidiary SCI by the Changes ofControllingSubsidiaryTKL|2February2018|www.cninfo.com.cn|
|Announcement on the Planning for Establishment ofWholly-ownedSubsidiarybyControllingSubsidiaryTKL|28April2018|www.cninfo.com.cn|

III Commitments of theCompany’s actual controller, shareholders, related parties and acquirer, as well as the Company and other commitment makers, unfulfilled in this reporting period
√Applicable□Notapplicable
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|-|-|-|-|-|-|-|
|Commitment|Commitmentmaker|Commitmenttype|Contents|Timeofmakingcommitment|Periodofcommitment|Fulfillment|
|Commitment on sharereform|||||||
|Commitment in theacquisition reportor thereport on equitychanges|||||||
|Commitments madeupon the assetsreplacement|||||||
|Commitments madeupon first issuance orrefinance|||||||
|Commitment on equityincentive|||||||
|Other commitmentsmade to minorityshareholders|FILLMANINVESTMENTSLIMITED|Commitmentonshareholdingincrease|Based on the confidence on thecontinuousandstabledevelopmentoftheCompany, it committed to increase theshareholdingiftheCompany’sstockpricelower than HKD2.40 per share after theimplementation of the shares contractionand trading resumption, and it wouldincrease no more than 2% shares (i.e.3.7078 million shares) of the total sharesissued by the Company within one yearsince the date of initial shareholding|December28, 2012|Longstanding|The Company’sstocks resumedtrading onDecember 31, 2012,but the Company’sstock price hasn’tmet the conditionfor shareholdingincrease since thedate of tradingresumption,|

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
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|Commitment|Commitmentmaker|Commitmenttype|Contents|Timeofmakingcommitment|Periodofcommitment|Fulfillment|
||||increase.Iftheplanonincreasingholding2% shares of the total shares iscompleted, if the stock price hasn’treached the target price, it will performrelevant approval procedures, andpropose to CSRC on continuousimplementation of shareholding increasebyexemptionofoffering.|||FILLMANInvestment Limitedhasn’t implementedthe shareholdingincreaseplan.|
|Executedontimeornot|Yes||||||

Nosuchcasesinthereportingperiod.
IVOperating result forecastforJanuary-June2018
ForecastofapossibledeficitorconsiderableYoYchangeintheaccumulativenetprofitmadeduringtheperiodfromthebeginning oftheyeartotheendofthenextreportingperiod,aswellasexplanationofwhy:
□Applicable√Notapplicable
V Securities investments
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. VI Investments in derivative financialinstruments
√Applicable□Notapplicable
Unit:RMB’0,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Operatingparty|Relation|Related-partytransactionornot|Typeofinvestmentinderivativefinancialinstruments|Initialinvestmentamount|Commencementdate|Terminationdate|Investmentamountatthebeginningoftheperiod|Pursedinthisreportingperiod|Soldinthisreportingperiod|Amountprovidedforimpairment|Investmentamountattheendoftheperiod|RatioofinvestmentamountattheendoftheperiodtotheCompany'snetassetattheendoftheperiod(%)|Actualprofit/lossfortheperiod|
|Bank|Non-related|No|Forwardforex|36,551.81|January 1, 2018|March 31, 2018|18,662.79|11,561.68|19,656.78||16,895.03|0.29|797.45|
|Total||||36,551.81|||18,662.79|11,561.68|19,656.78||16,895.03|0.29|797.45|
|Sourceofinvestmentfunds||||AllfromtheCompany'sownfunds||||||||||
|Lawsuits||||Nolawsuits||||||||||
|Disclosure date of the announcement about theboard’sconsentfortheinvestment||||2013-03-12||||||||||
|Disclosure date of the announcement about thegeneralmeeting’sconsentfortheinvestment||||2013-05-18||||||||||
|Riskanalysisandriskcontrolmeasuresforpositionsheldinderivativesinthisreportingperiod(includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationalrisk,legalrisk,etc.)||||1.Analysis on risks from holding of derivative products: gains or losses from difference between contracted exchange rate and market exchangerateonvaluedate.2.Controlmeasures:(1)Principle:The purposeofthefinancial derivativeoperationistoavoidrisks.TheCompany shallnot conducttransactionaloperationfor otherpurposesthanriskavoidance.TheCompanyshallnotconductcomplexderivativetradingabovetheactualoperationneedsandshallnotspeculateinderivativetradingwithhedgingasanexcuse.TheoverallcontractualamountforriskavoidanceoftheCompanyshallnotexceedthesummationof the net risk exposure of the existing assets and liabilities and the net risk exposure of assets and liabilities arising from the operation of theCompanyinthecomingyear.(2)Staffrequirements:Personneltakingpartintheinvestmentshallallfullyunderstandtherisksofderivativeinvestmentandstrictlyexecutethebusinessoperationandriskmanagementmechanismsforderivativeinvestment.(3) Operation standardization: Before making a derivative investment, the Company shall rationally equip itself with professional personnel forinvestmentdecision-making,businessoperation,riskcontrol,etc.Itshallalsoinquireandcompareamongvariousmarketsandproducts.Besides,itshallstrictlycontrolthevarietyandsizeofderivativeinvestmentandtrytochoosederivativetradingonexchangeasmuchaspossible.(4)Periodicevaluation:Derivativeinvestmentsshallbeevaluatedatleasttwiceforamonthandtheevaluationreportshallbesenttoahigh-rankingexecutiveauthorizedbytheBoardofDirectors.AndaderivativeinvestmentreportshallbesenttotheBoardofDirectorsannually.TheCompanyanditssubsidiariesonlyneedtosubmittotheBoardofDirectorsofthesubsidiaries.(5)Losslimit:Theinvestmentlossonasinglederivativeandalltheinvestmentlossshallnotexceed20%ofthetotalinvestmentamount.(6)Auditsystem:Theauditdepartmentauditsderivativeproducttradingperiodicallyandsubmitsauditreportstorelevantunits.||||||||||

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
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|Changesinmarketpriceorfairvalueofderivativesinvestedinthisreportingperiod(specificmethodsusedandrelevantassumptionandparametersettingsshallbedisclosedforanalysisoffairvalueofderivatives)|(1)GainsondeliveredderivativesintheReportingPeriodwereRMB6.4508million,andassessedgainsonthoseundeliveredwereRMB1.5237million,ofwhich,therotationofforwardsassessedgainsonundeliveredderivativesinthelastyearwasRMB3.9259million.|
||(2)Theformercontractedbankprovidedmonthlysheetsofestimatedexchangeratesfortheunduecontractedforwardexchangesonthelasttradingdayofthemonth.|
||(3)Theprofitandlossfromfairvaluechangesofthederivativewasconfirmedaccordingtothedifferencebetweenthecontractedamountunduebythemonth*theestimatedexchangerateandthecurrencyamountwhenboughtin.|
|Significant changes in the Company’s accountingpolicies and specific accounting principles forderivatives in this reporting period as compared tothepriorperiod|Nosignificantchanges|
|Special opinions expressed by independentdirectors concerning the Company’s derivativesinvestmentandriskcontrol|The Company has carried out a strict internal assessment for the financial derivative business and has established a corresponding supervisionmechanism.WeareoftheopinionthatthefinancialderivativebusinessconductedbytheCompanyisfairlynecessaryinitsroutineoperationandisincompliancewithrelevantlawsandregulations,withtheriskscontrollable.|

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. VII Visits paid to the Company in the Reporting Period for purposes of research, communication, interview, etc.
√Applicable□Notapplicable
|||||
|-|-|-|-|
|Dateofvisit|Wayofvisit|Typeofvisitor|Indextomaininquiryinformation|
|2018-01-08|Telephonecommunication|Individual|InquiredoftheoperationoftheCompany|
|2018-01-16|Telephonecommunication|Individual|InquiredoftheoperationoftheCompany|
|2018-03-20|Telephonecommunication|Individual|Inquiredoftheforecastlossoftheannualreportandfirstquarterreport,andthereformofB-share|
|2018-03-20|Telephonecommunication|Individual|InquiredoftheoperationoftheCompany|
|2018-03-22|Telephonecommunication|Individual|InquiredoftheoperationoftheCompany,andthereformofB-share|

 VIII Illegal provisionofguarantees forexternal parties
□Applicable√Notapplicable
IX Occupation of theCompany’s funds by the controlling shareholder or its related parties fornon-operatingpurposes
□Applicable√Notapplicable
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. Section IV Financial Statements
I Financialstatements
1.Consolidatedbalancesheet
PreparedbyTSANNKUEN(CHINA)ENTERPRISECO.,LTD.
Unit:RMB
||||
|-|-|-|
|Item|Closingamount|Openingamount|
|Currentassets:|||
|Monetaryfunds|535,842,553.36|564,381,960.88|
|Settlementreserves|||
|Lendingstobanksandotherfinancialinstitutions|||
|Financial assets measured at fair value with fair value changesincludedintheprofitandlossfortheReportingPeriod|5,449,550.00|3,925,850.00|
|Derivativefinancialassets|||
|Notesreceivable|||
|Accountsreceivable|166,051,743.35|270,052,420.89|
|Accountspaidinadvance|13,061,982.14|10,939,777.79|
|Premiumsreceivable|||
|Reinsurancepremiumsreceivable|||
|Receivablereinsurancecontractreserves|||
|Interestreceivable|1,529,753.57||
|Dividendsreceivable|||
|Otheraccountsreceivable|23,508,562.57|35,318,724.60|
|Financialassetspurchasedunderagreementtoresell|||
|Inventories|188,071,614.03|195,711,505.29|
|Assetsheldforsale|||
|Non-currentassetsduewithinoneyear|||
|Othercurrentassets|406,003,086.95|413,119,671.14|
|Totalcurrentassets|1,339,518,845.97|1,493,449,910.59|
|Non-currentassets:|||
|Loansandadvancestocustomers|||
|Available-for-salefinancialassets|40,000.00|40,000.00|
|Held-to-maturityinvestments|||
|Long-termaccountsreceivable|||
|Long-termequityinvestments|||
|Investmentproperty|31,268,117.72|32,125,408.51|
|Fixedassets|169,048,296.12|173,361,312.05|
|Constructioninprogress|4,119,696.54|2,059,623.18|

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|Closingamount|Openingamount|
|Engineeringmaterials|||
|Disposaloffixedassets|||
|Productivelivingassets|||
|Oil-gasassets|||
|Intangibleassets|28,303,564.06|29,501,389.01|
|R&Dexpense|||
|Goodwill|||
|Long-termdeferredexpenses|6,047,050.35|4,388,248.42|
|Deferredincometaxassets|22,564,665.12|22,682,483.17|
|Othernon-currentassets|24,894,519.26|21,216,778.58|
|Totalnon-currentassets|286,285,909.17|285,375,242.92|
|Totalassets|1,625,804,755.14|1,778,825,153.51|
|Currentliabilities:|||
|Short-termborrowings|15,564,600.41|10,832,951.89|
|BorrowingsfromtheCentralBank|||
|Moneydepositsacceptedandinter-bankdeposits|||
|Loansfrombanksandotherfinancialinstitutions|||
|Financial liabilities measured at fair value with fair value changesincludedintheprofitandlossfortheReportingPeriod|||
|Derivativefinancialliabilities|||
|Notespayable|29,532,657.35|20,024,149.15|
|Accountspayable|452,358,259.77|583,540,229.36|
|Accountsreceivedinadvance|24,918,125.10|11,661,974.88|
|Financialassetssoldforrepurchase|||
|Handlingchargesandcommissionspayable|||
|Payrollpayable|34,137,337.87|44,803,501.77|
|Taxesandfarespayable|3,864,727.20|2,824,721.65|
|Interestpayable|16,244.36|1,448.76|
|Dividendspayable|||
|Otheraccountspayable|55,519,017.68|51,138,758.51|
|Reinsurancepremiumspayable|||
|Insurancecontractreserves|||
|Payablesforactingtradingofsecurities|||
|Payablesforactingunderwritingofsecurities|||
|Liabilitiesheldforsale|||
|Non-currentliabilitiesduewithinoneyear|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|615,910,969.74|724,827,735.97|
|Non-currentliabilities:|||
|Long-termborrowings|||

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|Closingamount|Openingamount|
|Bondspayable|||
|Ofwhich:Preferenceshares|||
|Perpetualbonds|||
|Long-termaccountspayable|||
|Long-termpayrollpayable|169,856.55|156,540.09|
|Specialpayables|109,137,778.28|109,137,778.28|
|Estimatedliabilities|||
|Deferredincome|||
|Deferredincometaxliabilities|1,739,945.92|1,431,505.08|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|111,047,580.75|110,725,823.45|
|Totalliabilities|726,958,550.49|835,553,559.42|
|Owners’equity:|||
|Sharecapital|185,391,680.00|185,391,680.00|
|Otherequityinstruments|||
|Ofwhich:Preferenceshares|||
|Perpetualbonds|||
|Capitalreserves|296,808,965.79|296,808,965.79|
|Less:Treasurystock|||
|Othercompositeincome|2,106,001.00|4,619,820.87|
|Specialreserves|||
|Surplusreserves|33,888,636.90|33,888,636.90|
|Provisionsforgeneralrisks|||
|Retainedprofit|68,226,989.42|90,105,224.21|
|TotalequityattributabletoownersoftheCompany|586,422,273.11|610,814,327.77|
|Minorityinterests|312,423,931.54|332,457,266.32|
|Totalowners’equity|898,846,204.65|943,271,594.09|
|Totalliabilitiesandowners’equity|1,625,804,755.14|1,778,825,153.51|

 Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. 2.BalancesheetoftheCompany
Unit:RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|CurrentAssets:|||
|Monetaryfunds|22,156,283.70|5,342,389.95|
|Financial assets measured at fair value with fair value changesincludedintheprofitandlossfortheReportingPeriod|||
|Derivativefinancialassets|||
|Notesreceivable|||
|Accountsreceivable|14,528,037.12|20,741,059.08|
|Accountspaidinadvance|215,712.00|443,847.00|
|Interestreceivable|||
|Dividendsreceivable|||
|Otheraccountsreceivable|287,598.90|472,467.07|
|Inventories|12,870,257.68|16,130,234.05|
|Assetsheldforsale|||
|Non-currentassetsduewithinoneyear|||
|Othercurrentassets||1,023,556.88|
|Totalcurrentassets|50,057,889.40|44,153,554.03|
|Non-currentassets:|||
|Available-for-salefinancialassets|40,000.00|40,000.00|
|Held-to-maturityinvestments|||
|Long-termaccountsreceivable|||
|Long-termequityinvestments|922,914,701.56|922,914,701.56|
|Investmentproperty|31,818,440.40|32,598,504.60|
|Fixedassets|1,470,769.30|1,568,125.72|
|Constructioninprogress|||
|Engineeringmaterials|||
|Disposaloffixedassets|||
|Productivelivingassets|||
|Oil-gasassets|||
|Intangibleassets|49,499.99|56,249.99|
|R&Dexpense|||
|Goodwill|||
|Long-termdeferredexpenses|8,799.82|18,932.97|
|Deferredincometaxassets|10,475,642.18|10,492,468.50|
|Othernon-currentassets|||
|Totalnon-currentassets|966,777,853.25|967,688,983.34|
|Totalassets|1,016,835,742.65|1,011,842,537.37|
|Currentliabilities:|||
|Short-termborrowings|||
|Financial liabilities measured at fair value with fair value changesincludedintheprofitandlossfortheReportingPeriod|||
|Derivativefinancialliabilities|||
|Notespayable|||

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Accountspayable|46,405,172.40|71,274,018.34|
|Accountsreceivedinadvance|3,828,526.06|1,664,602.93|
|Payrollpayable|3,678,923.53|2,981,548.19|
|Taxesandfarespayable|963,673.38|894,510.08|
|Interestpayable|||
|Dividendspayable|||
|Otheraccountspayable|280,839,107.52|288,656,915.61|
|Liabilitiesheldforsale|||
|Non-currentliabilitiesduewithinoneyear|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|335,715,402.89|365,471,595.15|
|Non-currentliabilities:|||
|Long-termborrowings|||
|Bondspayable|||
|Ofwhich:Preferenceshares|||
|Perpetualbonds|||
|Long-termpayables|||
|Long-termpayrollpayables|||
|Specialpayables|||
|Estimatedliabilities|||
|Deferredincome|||
|Deferredincometaxliabilities|||
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|||
|Totalliabilities|335,715,402.89|365,471,595.15|
|Owners’equity:|||
|Sharecapital|185,391,680.00|185,391,680.00|
|Otherequityinstruments|||
|Ofwhich:Preferenceshares|||
|Perpetualbonds|||
|Capitalreserves|271,490,289.82|271,490,289.82|
|Less:Treasurystock|||
|Othercompositeincome|||
|Specialreserves|||
|Surplusreserves|33,888,636.90|33,888,636.90|
|Retainedprofit|190,349,733.04|155,600,335.50|
|Totalowners’equity|681,120,339.76|646,370,942.22|
|Totalliabilitiesandowners’equity|1,016,835,742.65|1,011,842,537.37|

 Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. 3.Consolidatedincomestatement
Unit:RMB
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|1.Operatingrevenues|319,364,654.64|454,378,577.36|
|Including:Salesrevenue|319,364,654.64|454,378,577.36|
|Interestrevenue|||
|Premiumrevenue|||
|Handlingchargeandcommissionrevenue|||
|2.Totaloperatingcosts|358,168,095.81|444,388,401.44|
|Including:Costofsales|293,239,451.95|387,349,957.02|
|Interestexpenses|||
|Handlingchargeandcommissionexpenses|||
|Surrenders|||
|Netclaimspaid|||
|Netamountprovidedasinsurancecontractreserves|||
|Expenditureonpolicydividends|||
|Reinsurancepremium|||
|Taxesandsurtaxes|3,143,568.77|3,337,174.29|
|Sellingexpenses|13,638,807.57|17,801,039.57|
|Administrativeexpenses|38,257,353.89|35,342,935.42|
|Financecosts|11,665,399.89|1,738,365.97|
|Assetimpairmentloss|-1,776,486.26|-1,181,070.83|
|Add:Profit/lossonfairvaluechanges(“-”meansloss)|1,523,700.00||
|Profit/lossoninvestment(“-”meansloss)|5,902,804.29|213,698.63|
|Including:Shareofprofitinassociatesandjointventures|||
|Foreignexchangeprofit(“-”meansloss)|||
|Incomearisingfromdisposalofassets(“-”meansloss)|327,372.40|172,996.23|
|Otherincome|1,255,697.00|516,075.00|
|3.Operatingprofit(“-”meansloss)|-29,793,867.48|10,892,945.78|
|Add:Non-operatingrevenue|281,354.88|1,000,457.93|
|Including:Profitondamageandscrappingofnon-currentassets|||
|Less:Non-operatingexpense|29,831.46|56,900.45|
|Including:Lossondamageandscrappingofnon-currentassets|5,199.46|6,900.45|
|4.Totalprofit(“-”meansloss)|-29,542,344.06|11,836,503.26|
|Less:Corporateincometax|348,766.94|3,622,669.95|
|5.Netprofit(“-”meansloss)|-29,891,111.00|8,213,833.31|
|5.1Netprofitfromgoingconcern(“-”meansnetloss)|-29,891,111.00|8,213,833.31|
|5.2Netprofitfromdiscontinuedoperation(“-”meansnetloss)|||
|NetprofitattributabletoownersoftheCompany|-21,878,234.79|6,800,900.65|

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|Minorityshareholders’income|-8,012,876.21|1,412,932.66|
|6.After-taxnetamountofothercompositeincome|-3,351,759.83|211,819.25|
|After-tax net amount of other composite income attributable to owners of theCompany|-2,513,819.87|158,864.44|
|6.1Othercompositeincomethatwillnotbereclassifiedintoprofitandloss|||
|6.1.1 Changes in net liabilities or assets with a defined benefit plan uponre-measurement|||
|6.1.2 Enjoyableshare in other comprehensive income in investees that cannotbereclassifiedintoprofitandlossundertheequitymethod|||
|6.2Othercompositeincomethatwillbereclassifiedintoprofitandloss|-2,513,819.87|158,864.44|
|6.2.1 Enjoyable share in other composite income in investees that will bereclassifiedintoprofitandlossundertheequitymethod|||
|6.2.2Profitandlossonfairvaluechangesofavailable-for-salefinancialassets|||
|6.2.3 Profit and loss on reclassifying held-to-maturity investments intoavailable-for-salefinancialassets|||
|6.2.4Effectivehedgingprofitandlossoncashflow|||
|6.2.5Foreign-currencyfinancialstatementtranslationdifference|-2,513,819.87|158,864.44|
|6.2.6Other|||
|After-tax net amount of other composite income attributable to minorityshareholders|-837,939.96|52,954.81|
|7.Totalcompositeincome|-33,242,870.83|8,425,652.56|
|AttributabletoownersoftheCompany|-24,392,054.66|6,959,765.09|
|Attributabletominorityshareholders|-8,850,816.17|1,465,887.47|
|8.Earningspershare|||
|8.1Basicearningspershare|-0.12|0.04|
|8.2Dilutedearningspershare|-0.12|0.04|

 Where businessmergers underthesame control occurredin theReportingPeriod, net profit achieved bythemerged partiesbefore thebusinessmergerswasRMB0.00,withthecorrespondingamountforthesameperiodoflastyearbeingRMB0.00.
Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. 4.IncomestatementoftheCompany
Unit:RMB
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|1.Operatingrevenues|25,078,057.17|21,002,892.18|
|Less:Operatingcosts|20,332,971.17|15,142,772.24|
|Taxesandsurtaxes|605,071.88|729,157.30|
|Sellingexpenses|1,754,858.63|2,156,628.15|
|Administrativeexpenses|1,433,363.89|2,943,317.20|
|Financialcosts|-1,065.19|-15,902.72|
|Assetimpairmentloss|-251,973.27|-1,150,303.33|
|Add:profit/lossonfairvaluechanges(“-”meansloss)|||
|Profit/lossoninvestment(“-”meansloss)|33,547,555.83|30,310,250.78|
|Including:Incomefrominvestmentonassociatesandjointventures|||
|Incomearisingfromdisposalofassets(“-”meansloss)|||
|Otherincome|||
|2.Operatingprofit(“-”meansloss)|34,752,385.89|31,507,474.12|
|Add:Non-operatingrevenue|18,469.97|41,647.63|
|Including:Profitondamageandscrappingofnon-currentassets|||
|Less:Non-operatingexpense|4,632.00||
|Including:Lossondamageandscrappingofnon-currentassets|||
|3.Totalprofit(“-”meansloss)|34,766,223.86|31,549,121.75|
|Less:Corporateincometax|16,826.32|266,215.77|
|4.Netprofit(“-”meansloss)|34,749,397.54|31,282,905.98|
|4.1Netprofitfromgoingconcern(“-”meansnetloss)|34,749,397.54|31,282,905.98|
|4.2Netprofitfromdiscontinuedoperation(“-”meansnetloss)|||
|5.After-taxnetamountofothercompositeincome|||
|5.1Othercompositeincomethatwillnotbereclassifiedintoprofitandloss|||
|5.1.1 Changes in net liabilities or assets with a defined benefit plan uponre-measurement|||
|5.1.2 Enjoyable share in other composite income in investees that cannot bereclassifiedintoprofitandlossundertheequitymethod|||
|5.2Othercompositeincomethatwillbereclassifiedintoprofitandloss|||
|5.2.1Enjoyableshareinother compositeincomeininvesteesthatwill bereclassifiedintoprofitandlossundertheequitymethod|||
|5.2.2Profitandlossonfairvaluechangesofavailable-for-salefinancialassets|||
|5.2.3 Profit and loss on reclassifying held-to-maturity investments intoavailable-for-salefinancialassets|||
|5.2.4Effectivehedgingprofitandlossoncashflow|||
|5.2.5Foreign-currencyfinancialstatementtranslationdifference|||
|5.2.6Other|||
|6.Totalcompositeincome|34,749,397.54|31,282,905.98|

Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. 5.Consolidatedcashflowstatement
Unit:RMB
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|1.Operatingcashflow:|||
|Cashreceivedfromsaleofcommoditiesandrenderingofservice|421,714,037.46|491,298,063.61|
|Netincreaseinmoneydepositsfromcustomersandinter-bankplacements|||
|NetincreaseinloansfromtheCentralBank|||
|Netincreaseinfundsborrowedfromotherfinancialinstitutions|||
|Cashreceivedfrompremiumoforiginalinsurancecontracts|||
|Netcashreceivedfromreinsurancebusiness|||
|Netincreaseindepositsofpolicyholdersandinvestmentfund|||
|NetincreaseindisposaloffinancialassetsmeasuredatfairvaluewithfairvaluechangesincludedintheprofitandlossfortheReportingPeriod|||
|Cashreceivedfrominterest,handlingchargesandcommissions|||
|Netincreaseinloansfrombanksandotherfinancialinstitutions|||
|Netincreaseinfundsinrepurchasebusiness|||
|Taxrefundsreceived|54,253,887.28|50,899,572.11|
|Otheroperatingcashreceived|8,917,968.49|19,055,478.67|
|Subtotalofoperatingcashinflow|484,885,893.23|561,253,114.39|
|Cashpaidforgoodsandservices|388,927,995.77|421,536,510.47|
|Netincreaseinloansandadvancestocustomers|||
|NetincreaseinfundsdepositedintheCentralBankandinter-bankplacements|||
|Cashforpayingclaimsoforiginalinsurancecontracts|||
|Cashforpayinginterest,handlingchargesandcommissions|||
|Cashforpayingpolicydividends|||
|Cashpaidtoandforemployees|66,421,877.12|71,049,721.91|
|Taxesandfarespaid|3,866,015.63|16,287,373.30|
|Othercashpaymentrelatingtooperatingactivities|34,512,598.45|49,210,053.68|
|Subtotalofoperatingcashoutflow|493,728,486.97|558,083,659.36|
|Netoperatingcashflow|-8,842,593.74|3,169,455.03|
|2.Investmentcashflow:|||
|Cashreceivedfromretractionofinvestments|46,450,800.00|32,729,887.43|
|Cashreceivedfromreturnoninvestments|1,396,650.10|229,280.83|
|Net cash received from disposal of fixed assets, intangible assets and other long-termassets|287,716.15|1,882,588.00|
|Netcashreceivedfromdisposalofsubsidiariesorotherbusinessunits|||
|Othercashreceivedrelatingtoinvestmentactivities|62,300,000.00|9,819,374.14|
|Subtotalofinvestmentcashinflow|110,435,166.25|44,661,130.40|
|Cashpaidtoacquirefixedassets,intangibleassetsandotherlong-termassets|13,979,813.74|18,968,169.49|
|Cashpaidforinvestment|40,000,000.00|192,047,415.57|

ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|Netincreaseinpledgedloans|||
|Netcashpaidtoacquiresubsidiariesandotherbusinessunits|||
|Othercashpaymentsrelatingtoinvestmentactivities|358,264,600.00|134,062,797.79|
|Subtotalofinvestmentcashoutflow|412,244,413.74|345,078,382.85|
|Netinvestmentcashflow|-301,809,247.49|-300,417,252.45|
|3.Financingcashflow:|||
|Cashreceivedfromcapitalcontributions|||
|Including:Cashreceivedfromminorityshareholderinvestmentsbysubsidiaries|||
|Cashreceivedasborrowings|5,108,330.63|25,036,648.00|
|Cashreceivedfromissuanceofbonds|||
|Otherfinancingcashreceived||6,899,282.43|
|Subtotaloffinancingcashinflow|5,108,330.63|31,935,930.43|
|Repaymentofborrowings|||
|Cashpaidforinterestexpensesanddistributionofdividendsorprofit|11,273,004.33|10,103,416.93|
|Including:dividendsorprofitpaidbysubsidiariestominorityshareholders|11,182,518.61|10,103,416.93|
|Othercashpaymentsrelatingtofinancingactivities|||
|Sub-totaloffinancingcashoutflow|11,273,004.33|10,103,416.93|
|Netfinancingcashflow|-6,164,673.70|21,832,513.50|
|4.Effectofforeignexchangeratechangesoncashandcashequivalents|-7,687,492.59|-2,285,644.08|
|5.Netincreaseincashandcashequivalents|-324,504,007.52|-277,700,928.00|
|Add:Openingbalanceofcashandcashequivalents|564,381,960.88|738,195,729.53|
|6.Closingbalanceofcashandcashequivalents|239,877,953.36|460,494,801.53|

 Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2018ofTsannKuen(China)EnterpriseCo.,Ltd. 6.CashflowstatementoftheCompany
Unit:RMB
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|1.Operatingcashflow:|||
|Cashreceivedfromsaleofcommoditiesandrenderingofservice|22,858,389.74|35,261,061.42|
|Taxrefundsreceived|||
|Otheroperatingcashreceived|10,659,931.71|14,251,817.18|
|Subtotalofoperatingcashinflow|33,518,321.45|49,512,878.60|
|Cashpaidforgoodsandservices|35,107,058.89|38,935,020.23|
|Cashpaidtoandforemployees|704,419.01|4,595,972.16|
|Taxesandfarespaid|1,021,402.40|1,423,553.61|
|Otheroperatingcashpayments|13,419,027.17|9,177,813.37|
|Subtotalofoperatingcashoutflow|50,251,907.47|54,132,359.37|
|Netoperatingcashflow|-16,733,586.02|-4,619,480.77|
|2.Investmentcashflow:|||
|Cashreceivedfromretractionofinvestments|||
|Cashreceivedfromreturnoninvestments|33,547,555.83|30,310,250.78|
|Net cash received from disposal of fixed assets, intangible assets and otherlong-termassets|||
|Netcashreceivedfromdisposalofsubsidiariesorotherbusinessunits|||
|Othercashreceivedrelatingtoinvestmentactivities|||
|Subtotalofinvestmentcashinflow|33,547,555.83|30,310,250.78|
|Cashpaidtoacquirefixedassets,intangibleassetsandotherlong-termassets||22,950.00|
|Cashpaidforinvestment|||
|Netcashpaidtoacquiresubsidiariesandotherbusinessunits|||
|Otherinvestmentcashpayments|||
|Subtotalofinvestmentcashoutflow|0.00|22,950.00|
|Netinvestmentcashflow|33,547,555.83|30,287,300.78|
|3.Financingcashflow:|||
|Cashreceivedfromcapitalcontributions|||
|Cashreceivedasborrowings|||
|Cashreceivedfromissuanceofbonds|||
|Otherfinancingcashreceived|||
|Subtotaloffinancingcashinflow|||
|Repaymentofborrowings|||
|Cashpaidforinterestexpensesanddistributionofdividendsorprofit|||
|Othercashpaymentsrelatingtofinancingactivities|||
|Sub-totaloffinancingcashoutflow|||
|Netfinancingcashflow|||
|4.Effectofforeignexchangeratechangesoncashandcashequivalents|-76.06|21.99|
|5.Netincreaseincashandcashequivalents|16,813,893.75|25,667,842.00|
|Add:Openingbalanceofcashandcashequivalents|5,342,389.95|6,668,219.24|
|6.Closingbalanceofcashandcashequivalents|22,156,283.70|32,336,061.24|

 Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing IIAuditor’s report
IsthisReportaudited?
□Yes√No
ThisReportisnotaudited.