Stock Code: 200468 Short Form of the Stock: NJ TEL B Notice No.: 2014-018 Nanjing Putian Telecommunications Co., Ltd.
Summary of Semi-Annual Report 2014
1. Important Notice
The summary of semi-annual report is excerpted from the full text of the semi-annual report. For the details, investors should carefully read the full text of the semi-annual report published on Juchao Information website (www.cninfo.com.cn) and Shenzhen Stock Exchange Website etc., appointed by CSRC.
Company profile
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|Short form for share|NJ TEL B|Code for share||200468|
|Listing stock exchange|Shenzhen Stock Exchange||||
|Contact person and ways|Secretary of the Board||Rep. of securities affairs||
|Name|Zhang Shenwei||Xiao Hong||
|Tel.|86-25-58962010||86-25-58962072||
|Fax.|86-25-52409954||86-25-52409954||
|E-mail|zsw@postel.com.cn||xiaohong@postel.com.cn||

2. Main accounting data and Changes of shareholders
(1)Main accounting data
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
|||||
|-|-|-|-|
||||Increase/decrease in this|
||Current period|Same period of last year||
||||report y-o-y (%)|
|Operating revenue (RMB)|1,173,023,650.25|1,207,557,538.82|-2.86%|
|Net profit attributable to shareholders of|-9,418,674.05|-2,719,217.34||
||||-246.37%|
|the listed company(RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting|-13,163,451.04|-3,466,018.77|-279.79%|
|non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating|-56,514,782.79|-135,255,287.95||
||||58.22%|
|activities(RMB)||||
|Basic earnings per share (RMB/Share)|-0.044|-0.013|-238.46%|
|Diluted earnings per share (RMB/Share)|-0.044|-0.013|-238.46%|
|Weighted average ROE (%)|-2.49%|-0.72%|-1.77%|
||||Increase/decrease in this|
||End of current period|End of last period|report-end over that of last|
||||period-end (%)|
|Total assets (RMB)|2,196,746,550.83|2,107,194,638.89|4.25%|
|Net assets attributable to shareholder of|373,637,925.56|383,210,520.22||
||||-2.50%|
|listed company(RMB)||||

(2)Particulars about the shares held by the top ten common shareholders
|||
|-|-|
|Total common shareholders at||
||13,036|
|period-end||

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|-|-|-|-|-|-|-|
|Particulars about the shares held by the top ten common shareholders|||||||
||||||Number of share||
||Nature of|Proportion of|Number of|Number of non-circulation stock|||
|Shareholders|||||pledged/frozen||
||shareholder|shares held|shares held|held|||
||||||State of share|Amount|
|China PotevioCompanyLimited|State-ownedcorporate|53.49%|115,000,000|115,000,000|||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Overseascorporate|2.57%|5,531,994|0|||
|Shanghai H.K.WanguoSecurity|Overseascorporate|2.18%|4,693,000|0|||
|Sun Huiming|Overseasnatural person|0.83%|1,780,610|0|||
|Chen Qiang|Overseasnatural person|0.60%|1,289,600|0|||
|Gao Lingyun|Domesticnature person|0.47%|1,000,000|0|||
|Wang Feifei|Domesticnature person|0.27%|584,408|0|||
|Hu Jun|Domesticnature person|0.24%|519,150|0|||
|Shu Jianping|Domesticnature person|0.23%|500,500|0|||
|Duan Ruifeng|Domesticnature person|0.17%|374,100|0|||
|Explanation on associated||Among the top ten shareholders, China Potevio Company Limited is neither a related party nor a|||||
|relationship among the aforesaid||person acting in concert with the others. It’s unknown by the Company whether there are related|||||
|shareholders||parties or persons acting in concert among the other shareholders.|||||
|Explanation on shareholders|||||||
|involving margin business (if||N/A|||||
|applicable)|||||||

(3) Particulars about the top ten shareholders with preferred stock held
□ Applicable√ Not applicable
No particular about the shareholders with preferred stock held in Period.
(4)Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
No change of controlling shareholders in reporting period
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No change of actual controller in reporting period
3. Discussion and analysis of management
The Company is a state-owned communication equipment manufacturing enterprise that mainly engages in the
manufacture and sale of communications equipment; at present, it has 8 operating entities directly under it,
including the wiring systems, the cable systems, the wireless systems, and it also has 12 subsidiaries, including Nanjing South Telecommunications Company Limited and Nanjing Putian Tianji Building Intelligent Ltd, and its product range covers optical communications, network communications, multimedia communications and other fields. During the reporting period, facing the complicated market situation and the difficult business environment, the company has focused on improving the core competitiveness of the industry by optimizing the product structure, improving the product competitiveness, strengthening the technological innovation, and promoting the transformation and upgrading, so that its major industries achieved balanced development trend, and the production and business remained stable. Affected by the disinvestment of 3G operators and the fierce market competition, in the first half year, the company has achieved the operating incomes of 1.173 billion Yuan, reduced by2.86% on a year-on-year basis, total profits of 185,100 Yuan, reduced by91.25% on a year-on-year basis, and net profits attributable to the parent company -9,418,700 Yuan.
Y-o-y chenges on main financial data (In RMB)
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|-|-|-|-|-|-|
||||Changes (+,-)|Scope for||
|Item|Jan.-June 2014|Jan.-June 2013|||Reasons for major changes|
||||(RMB)|changed||
||1,173,023,650.25|1,207,557,538.82|-34,533,888.57|-2.86%|Sales declined resulted from operators|
|Operation revenue|||||cuts the investment for broadband and|
||||||3G construction|
||1,008,242,535.79|1,043,008,171.55|-34,765,635.76|-3.33%|Sales declined on a y-o-y basis in the|
|Operation cost||||||
||||||Period|
||84,634,467.99|82,273,548.91|2,360,919.08|2.87%|Market development charges goes up in|
|Sales expenses||||||
||||||the Period|
|Administrative|64,294,527.99|62,829,331.87|1,465,196.12|2.33%||
||||||Salary growth on a y-o-y basis|
|expenses||||||
||15,922,237.55|11,488,031.64|4,434,205.91|38.60%|Interest expense increased over same|
|Financial cost||||||
||||||period of last year|
||227,042.96|-1,883,203.49|2,110,246.45|112.06%|Profit from subordinate stock-jointly|
||||||company increased, mainly because|
|Investment||||||
||||||joint venture SEI-Nanjing Putian|
|income||||||
||||||Optical Network Co., Ltd. has less|
||||||deficit in the Period|
||-4,150,260.40|788,992.83|-4,939,253.23|-626.02%|Financial expenses, human costs and|
||||||market development charges increased,|
|Operation profit e||||||
||||||the period expense growth over same|
||||||period of last year|
||4,748,462.85|1,927,667.56|2,820,795.29|146.33%|Consolidation range increased in the|
||||||period, in obtaining subsidiary Nanjing|
||||||Putian Datang Information Electronic|
|Non-operation||||||
||||||Co., Ltd, the investment cost lower than|
|revenue||||||
||||||the fair value of recognizable net assets|
||||||attributable to the Company when|
||||||acquiring, that is 3,276,800 Yuan earned|
||5,248,812.79|3,597,267.56|1,651,545.23|45.91%|Profit from part of the subsidiaryincreased, than the income tax expensesgrowth|
|Income tax||||||
|expenses||||||
|Net profit|-9,418,674.05|-2,719,217.34|-6,699,456.71|-246.37%||
|attributable to|||||Revenue from sales declined in the|
|owners’ of parent|||||Period y-o-y, period expenses increased|
|company||||||

4. Matters relevant to financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of lastyear’s
□Applicable√Not applicable
No changes in aspect of accounting policy, estimates and calculation method occurred in the Period
(2) Parriculars about retroactive restatement on major correction for accounting errors in reporting period□ Applicable√ Not applicable
No retroactive restatement on major correction for accounting errors in reporting period
(3) Particulars about the change of consolidation range compared with the financial report of lastyear’s√ Applicable□ Not applicable
One enterprise included in combination compared with lastyear’s:
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|-|-|-|-|-|
|Name|Ratio ofvoting rights|Reasons inconsolidation range|Closing net assets|Current net profit|
|Nanjing Putian DatangInformation ElectronicCo., Ltd|40%|Achievedcontrolling rightson the enterprise inPeriod|22,461,935.59|1,239,203.25|

Note: The Company has more members in the board under the name of Nanjing Putian Datang Information Electronic Co., Ltd during the Period, and takes majority voting rights in the board
(4) Explanation on “Qualified Opinion” of the Report from CPA by the Board and Supervisory Committee□ Applicable√ Not applicable
Board of Directors of
Nanjing Putian Telecommunications Co., Ltd.
26 August 2014