Shenzhen Zhongheng Huafa Co., Ltd.
THE THIRD QUARTERLY REPORT FOR 2016
October 2016
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 hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
All directors of the Company are attended the Meeting for quarterly report deliberation.
Principal of the Company Li Zhongqiu, Person in Charge of Accounting Works Yang Bin and Person in Charge of Accounting Organ (Accounting Officer) Wu Aijie hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete.
Section II. Main accounting data and changes of shareholders I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||Current period-end|||Period-end of last year|||Increase/decrease||
|Total assets(RMB)|604,731,675.16|||1,155,089,236.67||||-47.65%||
|Net assets attributable to|316,219,559.36|||311,406,562.20||||||
|shareholders of listed company||||||||1.55%||
|(RMB)||||||||||
||||||||||Increase/decrease in|
||||Increase/decrease in|||||||
||||||||||comparison with|
||||comparison with||||Year-begin to end of|||
|||Current period|||||||year-begin to|
||||same period of last||||the Period|||
||||||||||Period-end of last|
||||year|||||||
||||||||||year|
|Operating revenue (RMB)|147,394,897.89||4.77%|||456,933,423.45|||17.34%|
|Net profit attributable to|-2,763,587.66|||||4,509,368.56||||
|shareholders of the listed|||-147.51%||||||-77.45%|
|company (RMB)||||||||||
|Net profit attributable to||||||||||
|shareholders of the listed||||||||||
|company after deducting||-3,187,589.84|80.66%||||2,994,883.68||112.12%|
|non-recurring gains and||||||||||
|losses(RMB)||||||||||
|Net cash flow arising from||||||-71,069,383.24||||
|||--|--||||||-247.88%|
|operating activities(RMB)||||||||||
|Basic earnings per share|-0.0098|||||0.0159||||
||||-147.80%||||||-77.48%|
|(RMB/Share)||||||||||
|Diluted earnings per share|-0.0098|||||0.0159||||
||||-147.80%||||||-77.48%|
|(RMB/Share)||||||||||
|Weighted average ROE||-0.87%|-2.82%||||1.44%||-5.42%|

 In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||end of the Period||
|Gains/losses from the disposal of non-current asset (including|||
||94,452.65||
|the write-off that accrued for impairment of assets)|||

深圳中恒华发股份有限公司2016年第三季度报告全文
|||||
|-|-|-|-|
|Governmental subsidy reckoned into current gains/losses (not|1,356,969.00|||
|including the subsidy enjoyed in quota or ration according to||||
|||1,356,969.00||
|national standards, which are closely relevant to enterprise’s||||
|business)||||
|Other non-operating income and expenditure except for the|569,325.42|||
|||569,325.42||
|aforementioned items||||
|Less: impact on income tax||506,262.19||
|Total||1,514,484.88|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss.
II. Statement of the total shareholders and shares-held of top ten shareholders at end of the Period
1. Total number of common shareholders at the end of this report period and top ten common shareholders In Share
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||27,904||||Total preference|||||
|||||||||shareholders with voting|||||
||Total common stock shareholders||||||||||||
|||||||||rights recovered at end of|||0||
||in reporting period-end||||||||||||
|||||||||reporting period (if|||||
|||||||||applicable)|||||
||Top ten shareholders||||||||||||
||||||||||Amount of|Number of share pledged/frozen|||
||||Nature of||Proportion of||Amount of||||||
||Shareholders||||||||restricted||||
||||shareholder||shares held||shares held|||State of share||Amount|
||||||||||shares held||||
|WuhanZhonghengNew Science &TechnologyIndustrialGroup Co., Ltd.||Domesticnon-state-owned legal person||41.14%||116,489,894||||Pledged|||
|||||||||||Frozen||116,489,894|
|SEG (HONGKONG) CO.,LTD.||Overseas legalperson||5.85%||16,569,560||||Pledged||0|
|||||||||||Frozen||0|

|||||||||
|-|-|-|-|-|-|-|-|
|GOOD HOPECORNERINVESTMENTS LTD||Overseas legalperson|4.91%||13,900,000|Pledged|0|
|||||||Frozen|0|
|ChangjiangSecuritiesBrokerage(Hongkong)Co., Ltd.||Overseas legalperson|1.89%||5,355,249|Pledged|0|
|||||||Frozen|0|
|Xu Dongdong||Domesticnature person|0.60%||1,690,307|Pledged|0|
|||||||Frozen|0|
|Jiang Liangwu||Domesticnature person|0.37%||1,059,800|Pledged|0|
|||||||Frozen|0|
|BINGHUALIU||Overseasnature person|0.30%||840,113|Pledged|0|
|||||||Frozen|0|
|Yang Yang||Domesticnature person|0.25%||706,052|Pledged|0|
|||||||Frozen|0|
|Zhu Xionghui||Domesticnature person|0.24%||667,180|Pledged|0|
|||||||Frozen|0|
|Zhong Jiachao||Domesticnature person|0.22%||630,000|Pledged|0|
|||||||Frozen|0|
||Particular about top ten shareholders with un-restrict shares held|||||||
|||||||Type of shares||
||Shareholders|||Amount of un-restrict shares held||||
|||||||Type|Amount|
|Wuhan Zhongheng New Science& Technology Industrial GroupCo., Ltd.|||116,489,894|||||
|||||||RMB ordinary||
||||||||116,489,894|
|||||||shares||
|SEG (HONG KONG) CO., LTD.|||16,569,560|||Domestically||
|||||||listed foreign|16,569,560|
|||||||shares||
|GOOD HOPE CORNERINVESTMENTS LTD|||13,900,000|||Domestically||
|||||||listed foreign|13,900,000|
|||||||shares||
|Changjiang Securities Brokerage(Hongkong) Co., Ltd.|||5,355,249|||Domestically||
|||||||listed foreign|5,355,249|
|||||||shares||
|Xu Dongdong|||1,690,307|||RMB ordinary||
||||||||1,690,307|
|||||||shares||

|||||||
|-|-|-|-|-|-|
|Jiang Liangwu||1,059,800||RMB ordinary||
||||||1,059,800|
|||||shares||
|BINGHUA LIU||840,113||Domestically||
|||||listed foreign|840,113|
|||||shares||
|Yang Yang||706,052||RMB ordinary||
||||||706,052|
|||||shares||
|Zhu Xionghui||667,180||Domestically||
|||||listed foreign|667,180|
|||||shares||
|Zhong Jiachao||630,000||RMB ordinary||
||||||630,000|
|||||shares||
||||Among the top ten shareholders, Wuhan Zhongheng New Science & Technology Industrial|||
||||Group Co., Ltd. neither bears associated relationship with other shareholders, nor belongs|||
||Explanation on associated||to the consistent actor that are prescribed in Measures for the Administration of Disclosure|||
||relationship among the top ten||of Shareholder Equity Changes of Listed Companies. The Company neither knew whether|||
||shareholders or consistent action||there 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 shareholders|||||
||||In top ten common shareholders, Zhou Ningyan holds 1,200,000 shares of the Company,|||
||involving margin business about|||||
||||among which, 1,200,000 shares are held through the credit account, representing 100% of|||
||top ten common shareholders (if|||||
||||the total shares held, and takes 0.42% of the total shares of the Company|||
||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
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in reporting period
2. Total of shareholders with preferred stock held and the top ten shareholdings
□Applicable √Not applicable
Section III. Important events
I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons
√ Applicable□Not applicable
||||||
|-|-|-|-|-|
|Item|2016-9-30|2016-1-1|Y-o-y changes|Reasons|
|Monetary Fund|42,368,202.33|662,115,464.19|-93.60%|Repaid long-term loans in current period|
|||||Endorsement-for-transfer of notes increased in the|
|Note receivable|30,520,333.14|54,346,509.74|-43.84%|period|
|Account receivable|186,745,632.65|109,965,992.14|69.82%|Account receivable increased due to the peak season|
|||||Interest receivable at year-begin received in the|
|Interest receivable|-|1,838,752.40|-100.00%|period|
|||||Rents for investment has not been collected in the|
|Other receivable|22,705,383.18|9,411,791.40|141.24%|period|
|Inventory|36,327,256.72|27,132,125.91|33.89%|Inventory increased due to the peak season|
|Deferred tax assets|8,694,221.49|6,400,271.29|35.84%|Deductible losses occurred in the Period|
|Short term loan|161,192,303.22|119,479,107.41|34.91%|Short-term loans increased in the Period|
|||||Endorsement-for-transfer of notes increased in the|
|Notes payable|14,320,045.41|53,614,420.20|-73.29%|period|
|Account received in advance|2,444,670.02|1,147,469.52|113.05%|Utilities received in advance in the Period increased|
|Long term loan|-|554,700,000.00|-100.00%|Long-term loans are paid to the Bank in the Period|
|Item|Jan. to Sept. 2016|Jan. to Sept. 2015|Y-o-y changes|Reasons|
|||||Tax and additional from the property rental|
|Business taxes and||||decreased due to the replace the business tax with|
|additional|2,543,023.16|4,920,188.37|-48.31%|VAT|
|Financial expenses|4,602,555.08|43,199,943.80|-89.35%|Bank loans decreased in the Period|
|Investment gains|-|42,833,976.84|-100.00%|Earnings from financial products in prior period|
|||||There were overdue fine of export VAT in last|
|Non-business expenditure|67,871.14|313,562.80|-78.35%|period|
|||||There were deductible losses of un-recognized|
|Income tax expenses|1,532,808.42|79,073.46|1838.46%|deferred income tax assets in last period|
|Item|Jan. to Sept. 2016|Jan. to Sept. 2015|Y-o-y changes|Reasons|

||||||
|-|-|-|-|-|
|Cash received relating to||||The come-and-go money between companies are|
|other operating activities|7,503,048.25|104,728,770.98|-92.84%|collected in last period|
|Cash paid for relating to||||The come-and-go money between companies paid|
|other operating activities|39,836,581.63|22,027,295.69|80.85%|increased over that of last period|
|Cash received from|||||
|investment|-|500,000,000.00|-100.00%|Financing product was redeem in last period|
|Cash received from|||||
|investment gains|-|42,833,333.35|-100.00%|Earnings from financial products in prior period|
|Net cash received from|||||
|disposal of fixed assets,|||||
|intangible assets and other||||Dispose fixed assets and take back funds in current|
|long-term assts|202,772.00|20,000.00|913.86%|period|
|Cash paid for purchasing|||||
|fixed assets, intangible|||||
|assets and other long-term|||||
|assts|4,739,000.50|14,542,977.61|-67.41%|Purchasing Xingfuhai shops in last period|
|Cash paid for relating to||||Come-and-go money for old change are paid in last|
|other investment activities|-|500,099,356.51|-100.00%|period|
|Cash received from loans|183,246,761.70|273,598,564.67|-33.02%|Loans have reduced in current period|
|Cash paid for debt payment|696,946,397.73|303,673,954.40|129.50%|Pay long-term loans in advance in current period|
|Cash paid for distribution of|||||
|dividend, profit or interest|||||
|payment|7,028,536.77|39,318,168.08|-82.12%|Loans have reduced in current period|
|Cash paid for relating to||||The management charge of bank assets and loan|
|other financing activities|2,185,000.00|-||guarantee are paid in the period|
|Impact on cash or cash|||||
|equivalent from change of|||||
|foreign exchange|-384,943.38|31,906.89|1306.46%|Exchange rate fluctuation|

II. Progress of significant events, their influences, and analysis and explanation of their 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 fifth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting held on July 2, 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’” and “Proposal on submitting stockholders' meeting to authorize the board of directors to fully handle the matters related to the project promotion and implementation of urban renewal of Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”. The company has signed the “Agreement on the cooperation framework of urban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”, “Agreement on the cooperation framework of reconstruction project at Huafa, Gongming”, “Agreement on the removal compensation for urban renewal project at Huafa, Gong Ming Street, Guangming New District” and “Cooperation agreement on urban renewal project at Huafa, Gongming” with Shenzhen Qianhai Zhongzheng Urban Development Management Co., Ltd. (hereinafter referred to as “Qianhai Zhongzheng”), Shenzhen Zhongzheng Yutian Land Co., Ltd. (hereinafter referred to as “Zhongzheng Yutian”) and Wuhan Zhongheng Group. Thecompany’s seventh meeting of the eighth board of directors has considered and adopted the “Proposal on terminating the contract on urban renewal project at‘Huafa Area, Gong Ming Street, Guangming New District,Shenzhen’ of Shenzhen Qianhai Zhongzheng Urban Development Management Co., Ltd.”, the company has signed “Agreement on terminating the contract on urban renewal project at Huafa, Gongming” with Qianhai Zhongzheng, Zhongzheng Yutian and Wuhan Zhongheng Group, the relevant agreements signed at earlier stage are no longer legally binding to any party.
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 and Wuhan Zhongheng Group received a Notice of No. SHEN DP20160334 Arbitration(HNGZSS[2016] No.D4715) from South China International Economic and Trade Arbitration Commission. The Arbitration Commission of South China has accepted the artribition application from Shenzhen Vanke, which is applies for the disbutes in aspect of the “Cooperative Venture Contract of Old Urban Transformation for the Huafa Industry Zone in Gongming Street, Guangming New District” signed on 21 August 2015 with the Company and Wuhan Zhongheng Group. Found more in Artribution and Lawsuit of the Company Involved and Promotion of the Urban Renewal of “Huafa Area in Gongming Street, Guangming New District of Shenzhen, and Progress of Related Transactions” released on Juchao Website (http://www.cninfo.com.cn/) dated 14 September 2016.
(II) With purpose of further optimize the capital structure; improve financial status of the Company and providing necessary capital condition and liquidity for the upgrade of industry business transformation, specialization of the property operation and development of large-scale, the Company plans to private offering A-share. Controlling shareholder - Wuhan Zhongheng New Technology Industry Group Co., Ltd. subscribe 87.6 million shares at most in cash, fund raised no more than 599.184 million Yuan (issuance cost included) in total, the fund are raised for debt payment and supplement current capital in order to laying a solid foundation of the sustainable development of the Company. Relevant private placement of A-share has been deliberated and approved by third extraordinary meeting of 2015 of the Board and Annual General Meeting 2014, found more in notice published on Juchao Website (www.cninfo.com.cn) dated 20 March and 20 May 2015. For guarantee a persistently, efficiently and smoothly running of the privately offering of A-share, being deliberated and approved by the first extraordinary shareholders general meeting of 2016, prolong the period of validity of the resolution to 12 months. Found more in the annoucement released on Juchao Website (www.cninfo.com.cn) dated 18 May 2016.
(III) On December 29, 2015, Wuhan Zhongheng Group has completed the procedures to relieved the registration of pledge in China Securities Depository and Clearing Corporation Limited Shenzhen Branch for theCompany’s non-restricted circulating shares of 116,489,894 shares (accounting for100% of its holding of theCompany’s shares, and41.14% of thecompany’s general capital) that have been pledged to China CITIC Bank Corporation Limited Wuhan Branch, and handled the procedures for the registration of pledge in China Merchants Securities Co. Ltd. for 116,100,000 shares (accounting for41% of thecompany’s general capital) of them in twice on December 31, 2015 and February 1, 2016, please see detailed on the announcement released on www.cninfo.com.cn on January 13, 2016 and February 19.
(IV) On January 18, 2016, the company received the official notice of investigation from China Securities Regulatory Commission who has decided to register and investigate the company as a suspect of illegal disclosure of information, please see details on the announcement released on www.cninfo.com.cn on January 19, 2016. The “Administrative Punishment Decision Notice in Advance ”[2016] No.6 was received by the Company from
Shenzhen regulatroy authority of CSRC on 18 September 2016. Shenzhen regulatroy authority of CSRC making the follow decisions as: ordered the Company to make corrections and given a warning, and impose a fine of 400,000 Yuan; issue a warning to Li Zhongqiu, and impose a fine of 250,000 Yuan; issue a warning to Chen Zhigang and impose a fine of 80,000 Yuan; issue a warning to Tang Ganyu and impose a fine of 50,000 Yuan; issue a warning to Weng Xiaojue and Cao Li and impose a fine of 30,000 Yuan. Foune more in “Notice of Receiving an Administrative Punishment Decision Notice in Advance from CSRC” released on Juchao Website dated 19 September 2016. The Company did not received a notice of a penalty decision up to 30 September 2016. (V) The 8th BOD was expired in August 2016. The Proposal of General Election of the Board was deliberated and approved by the
10th
session of
8th
BOD held on 29 August 2016, the first extraordinary meeting of 2016 held on 7 September 2016 and the second extraordinary general meeting of 2016 held on 19 September 2016. And Li Zhongqiu, Li Yongping, Yang Bin, LiDing’an, Xu Jinwen and Zhang Zhaoguo were elected as the directors of the 9th
BOD of the Company. Holding a first meeting of
9th
BOD on 7 September 2016 for deliberated proposals of Election of the Chairman of the Board and Members of the Committee under the
9th
BOD, and completed the general election of the Board.
The 8th Supervisory Committee of the Company was expired in August 2016. The Proposal of General Election of Supervisory was deliberated and approved by the
10th
session of
8th
Supervisory Committee held on 29 August 2016 and the second extraordinary general meeting of 2016 held on 19 September 2016. And Huang Yanbo and Chen Qin were elected as the supervisor of the
9th
Supervisory Committee of the Company. Geng Qu was elected as the supervisor of workers of the
9th
supervisory committee by the congress of workers. On 7 September, the Proposal of General Election of Chairman of Supervisory Committee was deliberated and approved by the first meeting of
9th
supervisory committee, and Huang Yanbo was elected as the Chairman of supervisory committee. (VI) Among the shares held by controlling shareholder Wuhan Zhongheng Group, Shenzhen Intermediate Peoples Court judicial freeze the 116,489,894 shares (un-restricted shares) by 2016 Yue 03 CB No.53 from 27 September 2016 to 26 September 2018, the property preservation apply by Shenzhen Vanke Real Estate Co., Ltd. for arbitration case. Please refer to the Notice released by the Company on Juchao Website (www.cninfo.com.cn) dated 26 October 2016.
III. Commitments that the company, shareholders, actual controller, purchaser, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
√Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||Type of|||||
||||Content of||||
|||||Commitmen|Commitmen|Implementa|
|Commitments|Promise|commitment|commitment||||
|||||t date|t term|tion|
|||s|s||||
|Commitments for share reform|||||||
|Commitments in report of|Wuhan||The|2007-03-29|Implement|Normally|

|||||||
|-|-|-|-|-|-|
|acquisition or equity change|Zhongheng|enterprise||since 12|implementi|
||Group|and its||April 2007|ng|
|||subsidiaries||throughout||
|||will not||the year||
|||participate||||
|||directly or||||
|||indirectly in||||
|||operation of||||
|||the business||||
|||with||||
|||competitive||||
|||of Shen||||
|||Huafa and||||
|||its||||
|||controlling||||
|||subsidiary||||
|||concerned,||||
|||and not to||||
|||damage the||||
|||interest of||||
|||the Shen||||
|||Huafa and||||
|||its||||
|||controlling||||
|||subsidiary||||
|||by making||||
|||use of the||||
|||potential||||
|||controlling-||||
|||ship of the||||
|||Shen Huafa||||
|||either||||
|||The||||
|||enterprise||||
|||and its||||
|||subordinate||||
|||||Implement||
|||enterprise||||
||Wuhan|||since 12|Normally|
|||shall avoid a||||
||Zhongheng||2007-03-29|April 2007|implementi|
|||related||||
||Group|||throughout|ng|
|||transaction||||
|||||the year||
|||as far as||||
|||possible||||
|||with Shen||||
|||Huafa and||||

||
|-|
|its|
|controlling|
|subsidiary,|
|as for the|
|related|
|dealings|
|occurred|
|inevitable or|
|have|
|reasonable|
|cause, the|
|enterprise|
|promise to|
|follow the|
|principle of|
|fair-ness,|
|justice and|
|open-ness,|
|signed the|
|agreement|
|in line with|
|the laws,|
|perform|
|legal|
|program,|
|fulfill|
|information|
|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||||
|||After||||
|||acquisition||||
|||and assets||||
|||restructurin||||
|||g, guarantee||||
|||to have an||||
|||independent||||
|||staff, owns||||
|||||Implement||
|||independent||||
||Wuhan|||since 12|Normally|
|||and||||
||Zhongheng||2007-03-29|April 2007|implementi|
|||completed||||
||Group|||throughout|ng|
|||assets, and||||
|||||the year||
|||independent||||
|||in aspect of||||
|||business,||||
|||financial||||
|||and||||
|||institution||||
|||from Shen||||
|||Huafa||||
|Commitments in assets||||||
|reorganization||||||
|Commitments make in initial public||||||
|offering or re-financing||||||
|Equity incentive commitment||||||
|Other commitments for medium||||||
|and small shareholders||||||
|Perform the commitment promptly||||||
||Yes|||||
|or not||||||
|If the commitments is not fulfilled||||||
|on time, shall explain the specify|N/A|||||
|reason and the next work plan||||||

IV. Estimation of operation performance for year of 2016
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
V. Particular about security investment
□ Applicable√ Not applicable
The Company had no security investment in Period.
VI. Particulars about derivatives investment
□ Applicable√ Not applicable
The Company had no derivatives investment in Period.
VII. Registration form of receiving research, communication and interview in the report period
√ Applicable□Not applicable
|||||
|-|-|-|-|
|Date|||Basic situation index of investigation|
||Method|Type of investors||
||||Operation situation of the Company,|
|1 July to 30 September 0f||||
||Telephone communication|Individual|assets status and process of city update|
|2016||||
||||projects|

VII. 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. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
2016-09-30
In RMB
||||
|-|-|-|
|Items|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|42,368,202.33|662,115,464.19|
|Settlement provisions|||
|Capital lent|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
||30,520,333.14|54,346,509.74|
|Notes receivable|||
||186,745,632.65|109,965,992.14|
|Accounts receivable|||
|Accounts paid in advance|3,750,490.99|3,092,021.10|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable||1,838,752.40|
|Dividend receivable|||
|Other receivables|22,705,383.18|9,411,791.40|
|Purchase restituted finance asset|||
|Inventories|36,327,256.72|27,132,125.91|
|Divided into assets held for sale|92,857,471.69|92,857,471.69|
|Non-current asset due within one|||
|year|||
|Other current assets|||
|Total current assets|415,274,770.70|960,760,128.57|
|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|29,100,234.91|30,019,906.66|
|Fixed assets|105,534,839.51|110,607,425.50|
|Construction in progress|654,356.00|654,356.00|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|45,251,669.45|46,372,390.49|
|Expense on Research and|||
|Development|||
|Goodwill|||
|Long-term expenses to be|221,583.10|274,758.16|
|apportioned|||
|Deferred income tax asset|8,694,221.49|6,400,271.29|
|Other non-current asset|||
|Total non-current asset|189,456,904.46|194,329,108.10|
|Total assets|604,731,675.16|1,155,089,236.67|
|Current liabilities:|||
|Short-term loans|161,192,303.22|119,479,107.41|
|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|14,320,045.41|53,614,420.20|
|Accounts payable|63,634,565.46|54,241,655.86|
|Accounts received in advance|2,444,670.02|1,147,469.52|
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||
|commission payable|||

||||
|-|-|-|
|Wage payable|3,902,364.58|4,731,615.47|
|Taxes payable|17,041,783.56|20,498,295.88|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|23,371,971.74|32,665,698.32|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|285,907,703.99|286,378,262.66|
|Non-current liabilities:|||
|Long-term loans||554,700,000.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Special accounts payable|||
|Projected liabilities|2,604,411.81|2,604,411.81|
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|2,604,411.81|557,304,411.81|
|Total liabilities|288,512,115.80|843,682,674.47|
|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|146,283,642.90|

||||
|-|-|-|
|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|-190,920,532.39|-195,429,900.95|
|Total owner’s equity attributable to|316,219,559.36|311,406,562.20|
|parent company|||
|Minority interests|||
|Total owner’s equity|316,219,559.36|311,406,562.20|
|Total liabilities and owner’s equity|604,731,675.16|1,155,089,236.67|

 Legal representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
2. Balance Sheet of parent company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
||21,140,096.03|524,937,734.32|
|Monetary funds|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes receivable|||
|Accounts receivable|322,194.43|322,194.43|
|Account paid in advance|5,588.32|1,005,472.83|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|103,136,528.83|76,212,908.56|
|Inventories|14,806.50|14,806.50|
|Divided into assets held for sale|92,857,471.69|92,857,471.69|
|Non-current assets maturing within|||
|one year|||
|Other current assets|||
|Total current assets|217,476,685.80|695,350,588.33|
|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|29,100,234.91|30,019,906.66|
|Fixed assets|4,190,345.52|4,726,034.98|
|Construction in progress|654,356.00|654,356.00|
|Project materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|5,024,782.83|5,133,492.12|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|204,166.60|241,666.63|
|Deferred income tax assets|9,498,845.74|7,204,895.54|
|Other non-current assets|||
|Total non-current assets|235,281,631.60|234,589,251.93|
|Total assets|452,758,317.40|929,939,840.26|
|Current liabilities:|||
|Short-term borrowings|119,900,000.00|19,600,000.00|
|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|2,431,047.00|735,382.00|
|Wage payable|840,445.22|788,575.28|
|Taxes payable|9,435,403.83|16,934,546.28|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|16,969,133.35|26,415,353.86|
|Divided into liability held for sale|||
|Non-current liabilities due within 1|||
|year|||

||||
|-|-|-|
|Other current liabilities|||
|Total current liabilities|159,316,396.73|75,219,697.58|
|Non-current liabilities:|||
|Long-term loans||554,700,000.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Special accounts payable|||
|Projected liabilities|2,604,411.81|2,604,411.81|
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|2,604,411.81|557,304,411.81|
|Total liabilities|161,920,808.54|632,524,109.39|
|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|146,283,642.90|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus reserve|77,391,593.25|77,391,593.25|
|Retained profit|-216,302,582.89|-209,420,732.28|
|Total owner’s equity|290,837,508.86|297,415,730.87|
|Total liabilities and owner’s equity|452,758,317.40|929,939,840.26|

 3. Consolidated Profit Statement (this report period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|

||||
|-|-|-|
|I. Total operating income|147,394,897.89|140,688,910.96|
|Including: Operating income|147,394,897.89|140,688,910.96|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|151,575,227.83|149,315,806.90|
|Including: Operating cost|132,744,735.37|119,199,333.52|
|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|386,654.00|1,242,893.86|
|Sales expenses|2,606,106.05|2,490,619.26|
|Administration expenses|13,547,556.46|13,576,215.13|
|Financial expenses|2,290,175.95|12,806,745.13|
|Losses of devaluation of asset|||
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
|||13,333,333.37|
|with “-”)|||
|Including: Investment income on|||
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|III. Operating profit (Loss is listed with|||
||-4,180,329.94|4,706,437.43|
|“-”)|||
|Add: Non-operating income|569,981.70|1,899,133.76|
|Including: Disposal gains of|||
||10.94|9,774.76|
|non-current asset|||

||||
|-|-|-|
|Less: Non-operating expense|4,645.46|383.84|
|Including: Disposal loss of|||
||2,641.30||
|non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|-3,614,993.70|6,605,187.35|
|Less: Income tax expense|-851,406.04|787,945.37|
|V. Net profit (Net loss is listed with “-”)|-2,763,587.66|5,817,241.98|
|Net profit attributable to owner’s of|||
||-2,763,587.66|5,817,241.98|
|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|-2,763,587.66|5,817,241.98|
|Total comprehensive income|-2,763,587.66||
|||5,817,241.98|
|attributable to owners of parent Company|||
|Total comprehensive income|||
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|-0.0098|0.0205|
|(ii) Diluted earnings per share|-0.0098|0.0205|

 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 charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
4. Profit Statement of parent company (this report period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|4,129,711.91|14,889,810.19|
|Less: Operating cost|1,190,205.13|3,566,116.87|
|Operating tax and extras|280,928.53|906,526.38|
|Sales expenses|||
|Administration expenses|7,102,730.11|8,513,341.41|
|Financial expenses|2,189,275.72|12,100,843.00|
|Losses of devaluation of asset|||
|Add: Changing income of fairvalue(Loss is listed with “-”)|||
|Investment income (Loss islisted with “-”)|||
|||13,333,333.37|
|Including: Investment income|||

||||
|-|-|-|
|on affiliated company and joint venture|||
|II. Operating profit (Loss is listed|||
||-6,633,427.58|3,136,315.90|
|with “-”)|||
|Add: Non-operating income|315,130.00|183,848.00|
|Including: Disposal gains of|||
|non-current asset|||
|Less: Non-operating expense|||
|Including: Disposal loss of|||
|non-current asset|||
|III. Total Profit (Loss is listed with|||
||-6,318,297.58|3,320,163.90|
|“-”)|||
|Less: Income tax expense|-1,579,574.39||
|IV. Net profit (Net loss is listed with|||
||-4,738,723.19|3,320,163.90|
|“-”)|||
|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|-4,738,723.19|3,320,163.90|
|VII. Earnings per share:|||
|(i) Basic earnings per share|||
|(ii) Diluted earnings per share|||

5. Consolidated profit statement (from year-begin to end of this period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|456,933,423.45|389,423,540.82|
|Including: Operating income|456,933,423.45|389,423,540.82|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|452,911,993.54|414,576,515.80|
|Including: Operating cost|397,033,133.61|326,662,858.89|
|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|2,543,023.16|4,920,188.37|
|Sales expenses|7,889,841.76|7,622,389.84|

||||
|-|-|-|
|Administration expenses|40,843,439.93|32,171,134.90|
|Financial expenses|4,602,555.08|43,199,943.80|
|Losses of devaluation of asset|||
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
|||42,833,976.84|
|with “-”)|||
|Including: Investment income on|||
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|III. Operating profit (Loss is listed with|||
||4,021,429.91|17,681,001.86|
|“-”)|||
|Add: Non-operating income|2,088,618.21|2,706,187.41|
|Including: Disposal gains of|||
||116,017.95|9,774.76|
|non-current asset|||
|Less: Non-operating expense|67,871.14|313,562.80|
|Including: Disposal loss of|||
||21,565.30||
|non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|6,042,176.98|20,073,626.47|
|Less: Income tax expense|1,532,808.42|79,073.46|
|V. Net profit (Net loss is listed with “-”)|4,509,368.56|19,994,553.01|
|Net profit attributable to owner’s of|||
||4,509,368.56|19,994,553.01|
|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|4,509,368.56|19,994,553.01|
|Total comprehensive income|||
||4,509,368.56|19,994,553.01|
|attributable to owners of parent Company|||
|Total comprehensive income|||
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.0159|0.0706|
|(ii) Diluted earnings per share|0.0159|0.0706|

 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
6. Profit Statement of parent company (from year-begin to end of this period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|25,180,025.56|41,050,984.15|
|Less: Operating cost|3,368,089.42|6,822,404.01|
|Operating tax and extras|1,378,881.37|2,561,910.04|
|Sales expenses|||
|Administration expenses|22,536,060.96|17,731,451.25|
|Financial expenses|7,410,539.62|37,658,777.72|
|Losses of devaluation of asset|||
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is|||
|||42,833,333.35|
|listed with “-”)|||
|Including: Investment income|||
|on affiliated company and joint venture|||
|II. Operating profit (Loss is listed|||
||-9,513,545.81|19,109,774.48|
|with “-”)|||
|Add: Non-operating income|356,669.00|341,154.00|
|Including: Disposal gains of|||
|non-current asset|||
|Less: Non-operating expense|18,924.00|1,717.45|
|Including: Disposal loss of|||
||18,924.00||
|non-current asset|||
|III. Total Profit (Loss is listed with|||
||-9,175,800.81|19,449,211.03|
|“-”)|||
|Less: Income tax expense|-2,293,950.20||
|IV. Net profit (Net loss is listed with|||
||-6,881,850.61|19,449,211.03|
|“-”)|||
|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|-6,881,850.61|19,449,211.03|
|VII. Earnings per share:|||
|(i) Basic earnings per share|||
|(ii) Diluted earnings per share|||

7. Consolidated Cash Flow Statement (from year-begin to end of this period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|256,769,466.47|287,471,957.64|
|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|||
||7,503,048.25|104,728,770.98|
|operating activities|||
|Subtotal of cash inflow arising from|||
||264,272,514.72|392,200,728.62|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|230,473,778.87|259,502,535.91|
|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|46,933,579.88|46,694,148.75|
|Taxes paid|18,097,957.58|15,916,710.01|
|Other cash paid concerning|||
||39,836,581.63|22,027,295.69|
|operating activities|||
|Subtotal of cash outflow arising from|||
||335,341,897.96|344,140,690.36|
|operating activities|||
|Net cash flows arising from operating|||
||-71,069,383.24|48,060,038.26|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|||500,000,000.00|
|investment|||
|Cash received from investment|||
|||42,833,333.35|
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|202,772.00|20,000.00|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
||202,772.00|542,853,333.35|
|activities|||
|Cash paid for purchasing fixed,|||
||4,739,000.50|14,542,977.61|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|||500,099,356.51|
|investing activities|||
|Subtotal of cash outflow from investing|||
||4,739,000.50|514,642,334.12|
|activities|||
|Net cash flows arising from investing|||
||-4,536,228.50|28,210,999.23|
|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|183,246,761.70|273,598,564.67|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||183,246,761.70|273,598,564.67|
|activities|||
|Cash paid for settling debts|696,946,397.73|303,673,954.40|
|Cash paid for dividend and profit|||
||7,028,536.77|39,318,168.08|
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
||2,185,000.00||
|financing activities|||
|Subtotal of cash outflow from financing|||
||706,159,934.50|342,992,122.48|
|activities|||
|Net cash flows arising from financing|||
||-522,913,172.80|-69,393,557.81|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|-384,943.38|31,906.89|
|exchange rate|||
|V. Net increase of cash and cash|||
||-598,903,727.92|6,909,386.57|
|equivalents|||
|Add: Balance of cash and cash|||
||632,846,956.16|22,392,147.12|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||33,943,228.24|29,301,533.69|
|equivalents at the period -end|||

8. Cash Flow Statement of parent company (from year-begin to end of this period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|17,894,121.27|46,388,625.03|

||||
|-|-|-|
|commodities and providing labor|||
|services|||
|Write-back of tax received|||
|Other cash received concerning|||
||54,707,013.66|29,730,709.64|
|operating activities|||
|Subtotal of cash inflow arising from|||
||72,601,134.93|76,119,334.67|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|||
|service|||
|Cash paid to/for staff and workers|3,852,201.06|4,384,404.98|
|Taxes paid|11,130,687.76|4,846,872.57|
|Other cash paid concerning|||
||96,793,074.16|54,909,468.68|
|operating activities|||
|Subtotal of cash outflow arising from|||
||111,775,962.98|64,140,746.23|
|operating activities|||
|Net cash flows arising from operating|||
||-39,174,828.05|11,978,588.44|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|||500,000,000.00|
|investment|||
|Cash received from investment|||
|||42,833,333.35|
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|576.00||
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
||576.00|542,833,333.35|
|activities|||
|Cash paid for purchasing fixed,|||
||2,770,892.00|29,899.00|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net cash received from|||
|subsidiaries and other units|||

||||
|-|-|-|
|Other cash paid concerning|||
|||500,000,000.00|
|investing activities|||
|Subtotal of cash outflow from investing|||
||2,770,892.00|500,029,899.00|
|activities|||
|Net cash flows arising from investing|||
||-2,770,316.00|42,803,434.35|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|115,000,000.00|14,700,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||115,000,000.00|14,700,000.00|
|activities|||
|Cash paid for settling debts|569,400,000.00|37,800,000.00|
|Cash paid for dividend and profit|||
||5,492,585.19|35,196,829.31|
|distributing or interest paying|||
|Other cash paid concerning|||
||1,960,000.00||
|financing activities|||
|Subtotal of cash outflow from financing|||
||576,852,585.19|72,996,829.31|
|activities|||
|Net cash flows arising from financing|||
||-461,852,585.19|-58,296,829.31|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|90.95|11,437.57|
|exchange rate|||
|V. Net increase of cash and cash|||
||-503,797,638.29|-3,503,368.95|
|equivalents|||
|Add: Balance of cash and cash|||
||524,937,734.32|14,802,258.59|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||21,140,096.03|11,298,889.64|
|equivalents at the period -end|||

II. Audit Report
Whether the third quarter report was audited or not
□Yes√No
The third quarter report of the Company has not been audited.