Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd. HaiNan Pearl River Holdings Co., Ltd.
Report for the First Quarter of 2017
April 2017
Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd. Section I Important Statements
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management staff of HaiNan Pearl River Holdings Co., Ltd. (hereinafter referred to as “the Company”) warrant that the information carried in this report is factual, accurate and complete, without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that.
All directors have attended the board session for reviewing this report.
Wang Chunli, company principal, Guan Ying, chief of the accounting work and Wu Xiukun, chief of the accounting organ (chief of accounting), hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete.
This Report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd. Section II Profile of the Company
I Financial results
Whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting policies or correction of accounting errors
□ Yes√ No
|||||
|-|-|-|-|
||January-March 2017|January-March 2016|+/-%|
|Operating revenues (RMB)|250,701,694.22|80,025,245.10|213.28%|
|Net profit attributable to shareholders of|13,757,116.56|-38,541,192.11||
||||135.69%|
|the Company (RMB)||||
|Net profit attributable to shareholders of||||
||14,595,277.71|-38,415,455.62|137.99%|
|the Company before exceptional profit and||||
|loss (RMB)||||
|Net operating cash flow (RMB)|-77,228,574.91|124,823,160.52|-161.87%|
|Basic earnings per share (RMB/share)|0.03|-0.09|133.33%|
|Diluted earnings per share (RMB/share)|0.03|-0.09|133.33%|
|Weighted average return on equity (%)|19.12%|0.00%|19.12%|
||31 March 2017|31 December 2016|+/-%|
|Total assets (RMB)|1,090,959,173.69|1,385,469,635.17|-21.26%|
|Net assets attributable to shareholders of|78,845,419.44|65,088,302.88||
||||21.14%|
|the Company (RMB)||||

Exceptional profit and loss
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-March 2017|Note|
|Profit/loss on disposal of non-current assets (including offset|||
||167,691.55||
|amount of asset impairment provisions)|||
|Capital occupation charges on non-financial enterprises that are|||
||512,971.70||
|charged to the profit/loss for the Reporting Period|||
|Non-operating income and expense other than the above|-1,539,967.75||
|Less: Income tax effects|-42,187.36||
|Minority interests effects (after tax)|21,044.01||
|Total|-838,161.15|--|

Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable√ Not applicable
Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd. No such cases in the Reporting Period.
II Total number of shareholders at the period-end and shareholdings of top ten shareholders 1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as shareholdings of top ten shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Total number of preference|||||
|Total number of common||||shareholders with resumed|||||
|||31,930|||||0||
|shareholders at the period-end||||voting rights at the period-end|||||
|||||(if any)|||||
|Shareholdings of top ten shareholders|||||||||
||||||Number of|Pledged or frozen shares|||
|Name of|Nature of|Shareholding|Number of shares||||||
||||||restricted shares||||
|shareholder|shareholder|percentage (%)|held|||Status of shares||Number of shares|
||||||held||||
|Beijing GrainGroup Co., Ltd.|State-ownedcorporation|28.95%|123,561,963||||||
|Li Sheryn ZhanMing|Foreignindividual|4.84%|20,647,100||||||
|BOC—JiashiSecuritiesInvestment Fundin Value-addedIndustry|Domesticnon-state-ownedcorporation|0.61%|2,595,200||||||
|Yang Shuling|Domesticindividual|0.58%|2,458,000||||||
|Xu Zhen|Domesticindividual|0.52%|2,209,200||||||
|Gao Biao|Domesticindividual|0.50%|2,120,000||||||
|Yao Liyuan|Foreignindividual|0.46%|1,950,000||||||
|Zhang Xiaoxia|Foreignindividual|0.46%|1,949,250||||||
|Zhong Yi|Domesticindividual|0.38%|1,640,083||||||
|Wang Dao|Domesticindividual|0.37%|1,595,900||||||
|Shareholdings of top ten non-restricted shareholders|||||||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||
|-|-|-|-|
|||Variety of shares||
|Name of shareholder|Number of non-restricted shares held|||
|||Variety|Number|
|Beijing Grain Group Co., Ltd.|123,561,963|RMB common shares|123,561,963|
|Li Sheryn Zhan Ming|20,647,100|Domestically listed foreign||
||||20,647,100|
|||shares||
|BOC—Jiashi Securities InvestmentFund in Value-added Industry|2,595,200|||
|||RMB common shares|2,595,200|
|Yang Shuling|2,458,000|RMB common shares|2,458,000|
|Xu Zhen|2,209,200|RMB common shares|2,209,200|
|Gao Biao|2,120,000|RMB common shares|2,120,000|
|Yao Liyuan|1,950,000|Domestically listed foreign||
||||1,950,000|
|||shares||
|Zhang Xiaoxia|1,949,250|Domestically listed foreign||
||||1,949,250|
|||shares||
|Zhong Yi|1,640,083|RMB common shares|1,640,083|
|Wang Dao|1,595,900|RMB common shares|1,595,900|
||Among shareholders above, there exists no related-party relationship between the principal|||
||shareholder and other shareholders of the Company. Nor they are parties with concerted|||
|Related or acting-in-concert parties|action as prescribed in the Information Disclosure Administrative Methods for Changes in|||
|among the above shareholders|Shareholding of Shareholders of Listed Companies. And it is unknown whether there is|||
||related-party relationship among other shareholders and whether they are prescribed parties|||
||with concerted action.|||
||The shareholder, Zhong Yi held 1,640,083 shares of the Company through the customer credit|||
|Top ten common shareholders|collateral securities trading account of Fortune Securities Co., Ltd.. The shareholder, Wang|||
|conducting securities margin trading|Dao held 1,295,900 shares of the Company through common account and held 300,000|||
|(if any)|shares of the Company through the customer credit collateral securities trading account of|||
||Cinda Securities Co., Ltd..|||

Did any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conduct any promissory repo during the Reporting Period?
□ Yea√ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top ten of them
□ Applicable√ Not applicable
Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd. Section III Significant Events
I Changes in major accounting statement items and financial indicators for the Reporting Period, as well as reasons for such changes
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Item|03/31/2017|12/31/2016|+/- (%)|Reason for change|
|Monetary funds|145,198,515.20|246,504,351.39|-41.10%|Mainly because of therepayment of loans andmoney for land transferfrom subsidiary HubeiPearl River Co., Ltd. inthis Reporting Period|
|Inventories|113,680,381.94|297,867,807.05|-61.84%|Mainly because ofsubsidiary ShanghaiReal Estate Co., Ltd.’schange of holdingpurpose of building itholds, from inventoriesto investment real estateand costs of the sellingof real estate transactionfrom Hubei Company.|
|Other current assets|-|8,714,139.07|-100.00%|Mainly because thereare no such cases in thisReporting Period wheresubsidiary HubeiCompany paid taxes inadvance|
|Investment real estate|41,424,771.83|19,244,780.80|115.25%|Mainly because ofsubsidiary ShanghaiReal Estate Co., Ltd.’schange of holdingpurpose of building itholds, from inventoriesto investment real estate|
|Accounts payable|17,670,161.90|77,627,005.61|-77.24%|Mainly because of thepayment of parts ofproject fund fromsubsidiary Hubei Real|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||||
|-|-|-|-|-|
|||||Estate Co., Ltd. in thisReporting Period|
|Accounts received inadvance|224,367,103.88|365,746,868.16|-38.66%|Mainly because ofincome of the selling ofreal estate transactionfrom subsidiary HubeiReal Estate Co., Ltd.|
|Non-current liabilitiesdue within one year|-|78,710,181.59|-100.00%|Mainly because ofrepayment of loansfrom subsidiaryMudanjiang TravelGroup|
|Long-term borrowings|5,000,000.00|73,666,666.66|-93.21%|Mainly because ofrepayment of loansfrom subsidiaryMudanjiang TravelGroup|
|Minority equity|-11,470,075.98|-4,096,952.76|-179.97%|Mainly because ofdividend of subsidiaryHubei Real Estate Co.,Ltd.|

||||||
|-|-|-|-|-|
|Item|January-March 2017|January-March 2016|+/- (%)|Reason for change|
|Operating revenues|250,701,694.22|80,025,245.10|213.28%|Mainly because ofincome of the selling ofreal estate transactionfrom subsidiary HubeiPearl River Co., Ltd.|
|Operating costs|184,669,214.20|62,053,529.67|197.60%|Mainly because of costsof the selling of realestate transaction fromsubsidiary Hubei PearlRiver Co., Ltd.|
|Taxes and surtaxes|11,359,640.40|4,535,479.61|150.46%|Mainly because of theprovision of relatedtaxes for selling of realestate from subsidiaryHubei Pearl River Co.,Ltd.|
|Selling expenses|2,813,146.35|4,500,007.25|-37.49%|Mainly because of thedecrease of salescommission in thisReporting Period|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||||
|-|-|-|-|-|
|Financial expenses|3,601,893.63|24,749,365.53|-85.45%|Mainly because ofrepayment of theprincipal and decreaseof financing costs inthis Reporting Period|
|Asset impairment loss|-4,012,911.94|245,161.16|-1736.85%|Mainly because ofreceiving parts ofreceivables in thisReporting Period|
|Income tax expenses|8,208,612.14|29,699.94|27538.48%|Mainly because ofprovision of incometaxes for revenues fromHubei Pearl River Co.,Ltd. and Shanghai RealEstate Co., Ltd.|
|Minority interestincome|1,806,876.78|-2,335,161.42|177.38%|Mainly because ofrevenues fromsubsidiary Hubei PearlRiver Co., Ltd.|
|Net cash flow fromoperating activities|-77,228,574.91|124,823,160.52|-161.87%|Mainly because ofdecrease of receipt ofhouse payment inadvance fromsubsidiary Hubei PearlRiver Co., Ltd. in thisReporting Period|
|Net cash flow frominvestment activities|53,904,911.22|7,258,357.17|642.66%|Mainly because ofreceiving cash fromrecovery of parts ofinvestment and sellingof parts of fixed assetsand investment realestate|
|Net cash flow fromfinancing activities|-77,982,172.50|-127,094,529.15|38.64%|Mainly because ofincrease of receiptsfrom loans in thisReporting Period|

 II Progress of significant events and analysis& explanations on their influence and solutions
(I) The Company signed the Supplementary Agreement (II) on the Profit Compensation Agreement that has additional conditions
with Beijing Grain Group Co., Ltd. and Beijing State-owned Capital Management Center on February 15, 2017. After the signing of
the supplementary agreement, the profitability commitment period of the transaction is adjusted from 2016, 2017 and 2018 to 2017,
Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd. 2018 and 2019, and if the transaction fails to be implemented in 2017, the first year of the profitability commitment period of this transaction will be the year when the target company completes the transaction. The net profit-attributable to the owner of the Company- of the consolidated financial statements after deducting non-recurring gains and losses committed by the target company for 2017, 2018, and 2019 will be adjusted accordingly to not less than RMB 130.1115 million, RMB 150.3937 million and RMB 162.1605 million.
(II) To resolve competition between the controlling shareholders and the listed company, to safeguard the interests of listed companies and small and medium shareholders, the Company decides to terminate the grain trade contract signed by parties concerned, to recover the commercial acceptance bill and authorize the management of the Company to handle the specific business andcontract’s cancellation and termination.
(III) According to the relevant issues raised in "The Notice of the First Review Feedback of China Securities Regulatory Commission Administrative Licensing Project, the Company has updated and revised documents related to major assets reorganization such as the auditing report of the transaction object and files for review of listed companies, has seriously studied and implemented the helpful feedback and has replied to questions raised as required together with the agency in accordance with the latest financial status of the Company and the target company.
(IV) In order to ensure the smooth progress of this major assets reorganization, the Company determined to terminate the cooperation agreement with Beijing Anxin Law Firm and entrusted Beijing Zhonglun Law Firm as the special legal adviser for this major assets reorganization, providing documents related to the major assets reorganization such as the legal opinion after the friendly consultations with Beijing Anxin Law Firm and Beijing Zhonglun Law Firm.
(V) The progress of the Company's joint and several liability guarantee for ICBC Mudanjiang Sub-Branch and China Citic Bank Mudanjiang Sub-Branch and theCompany’s liability of counter guarantee for Heilongjiang Xinzheng Investment Guarantee Group Co., Ltd.: the Company has received the notice from ICBC Mudanjiang Sub-Branch, China Citic Bank Mudanjiang Sub-Branch and Heilongjiang Xinzheng Investment Guarantee Group Co., Ltd. that theCompany’s related liabilities have been lifted after the full return of loans by Mudanjiang Pearl River Wanjia Tourism Investment Development Group Co., Ltd..
||||
|-|-|-|
|Generalization of significant events|Date of disclosure|Index|
|The Company signed the Supplementary Agreement (II) on the ProfitCompensation Agreement that has additional conditions with Beijing GrainGroup Co., Ltd. and Beijing State-owned Capital Management Center onFebruary 15, 2017. After the signing of the supplementary agreement, theprofitability commitment period of the transaction is adjusted from 2016, 2017and 2018 to 2017, 2018 and 2019, and if the transaction fails to be implementedin 2017, the first year of the profitability commitment period of this transactionwill be the year when the target company completes the transaction. The netprofit-attributable to the owner of the Company- of the consolidated financialstatements after deducting non-recurring gains and losses committed by the targetcompany for 2017, 2018, and 2019 will be adjusted accordingly to not less thanRMB 130.1115 million, RMB 150.3937 million and RMB 162.1605 million.|||
|||http://www.cninfo.com.cn|
||02/16/2017|Announcement No.:|
|||2017-003|
|To resolve competition between the controlling shareholders and the listedcompany, to safeguard the interests of listed companies and small and mediumshareholders, the Company decides to terminate the grain trade contract signedby parties concerned, to recover the commercial acceptance bill and authorize themanagement of the Company to handle the specific business and contract’scancellation and termination.|||
|||http://www.cninfo.com.cn|
||03/07/2017||
|||Announcement No.:|
|||2017-009|
|According to the relevant issues raised in "The Notice of the First ReviewFeedback of China Securities Regulatory Commission Administrative Licensing||http://www.cninfo.com.cn|
||03/17/2017||
|||Announcement No.:|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Project, the Company has updated and revised documents related to major assetsreorganization such as the auditing report of the transaction object and files forreview of listed companies, has seriously studied and implemented the helpfulfeedback and has replied to questions raised as required together with the agencyin accordance with the latest financial status of the Company and the targetcompany.||2017-012|
|In order to ensure the smooth progress of this major assets reorganization, theCompany determined to terminate the cooperation agreement with Beijing AnxinLaw Firm and entrusted Beijing Zhonglun Law Firm as the special legal adviserfor this major assets reorganization, providing documents related to the majorassets reorganization such as the legal opinion after the friendly consultationswith Beijing Anxin Law Firm and Beijing Zhonglun Law Firm.|||
|||http://www.cninfo.com.cn|
||04/01/2017|Announcement No.:|
|||2017-015|
|The progress of the Company's joint and several liability guarantee for ICBCMudanjiang Sub-Branch and China Citic Bank Mudanjiang Sub-Branch and theCompany’s liability of counter guarantee for Heilongjiang Xinzheng InvestmentGuarantee Group Co., Ltd.: the Company has received the notice from ICBCMudanjiang Sub-Branch, China Citic Bank Mudanjiang Sub-Branch andHeilongjiang Xinzheng Investment Guarantee Group Co., Ltd. that theCompany’s related liabilities have been lifted after the full return of loans byMudanjiang Pearl River Wanjia Tourism Investment Development Group Co.,Ltd..|||
|||http://www.cninfo.com.cn|
||04/11/2017|Announcement No.:|
|||2017-017|

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□ Inapplicable
||||||||
|-|-|-|-|-|-|-|
|||||Time of|||
|||Commitment|||Period of||
|Commitment|Commitment maker||Contents|making||Fulfillment|
|||type|||commitment||
|||||commitment|||
||Beijing Food Group||||||
||Co., Ltd(hereinafter||||||
|||||||the|
||referred to as “BGG”);||||||
||||The Company will bear|||commitment|
||Chen Binglian; Guan||||Performing||
||||compensation liabilities if|||makers|
||Ying; Wang Chunli;||||according to||
|Commitments||Other|there exists illegal behaviors,|||abided by the|
||Wang Guofeng; Wang|||03/17/2017|the||
|made at the||commitments|like idle land not disclosed,|||commitments|
||Jianxin; Wang Xinxin;||||commitment||
|time of assets|||causing a loss for listed|||during the|
||Xue Chunlei; Yao||||s||
|reorganization|||companies and investors.|||Reporting|
||Gang; Zhao Yanming;||||||
|||||||Period|
||Zhao Yinhu; Zhu||||||
||Hengyuan||||||
||Beijing Food Group|Commitments|"1. Person who increases||Performing|the|
|||||11/07/2016|||
||Co., Ltd|on increased|shares: BGG; 2.||according to|commitment|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
||shares|Implementation period of||the|makers|
|||increased shares plan: from||commitment|abided by the|
|||11/07/2016 to 05/07/2017,||s|commitments|
|||total 6 months; 3. The amount|||during the|
|||or number of increased shares:|||Reporting|
|||increasing the Company’s|||Period|
|||shares on the condition that||||
|||the related rules of CSRC and||||
|||Shenzhen Stock Exchange are||||
|||observed, and the amount is||||
|||no less than RMB130 million,||||
|||no more than RMB220||||
|||million, and it can’t trigger||||
|||the duty of tender offer; 4.||||
|||Price of increased shares: not||||
|||setting a price range. BGG||||
|||will not initiatively decrease||||
|||the holdings of Company’s||||
|||shares on holding period and||||
|||within the legal time limit. "||||
|||"BGG and GGZX committed||||
|||that the net profit attributable||||
|||to owners of the Company||||
|||after deducting exceptional||||
|||profit and loss in the||||
|||consolidates financial||||
|||statements committed during||||
|||the commitment period of||||
|||profit by Beijing Food Co.,|||the|
|Beijing State-owned||||||
||Commitment|Ltd(hereinafter referred to as|||commitment|
|Capital Operation and||||Performing||
||on|“JLGF”) was respectively no|||makers|
|Management||||according to||
||performance|less than RMB130.1115|||abided by the|
|Center(hereinafter|||11/02/2016|the||
||and|million,|||commitments|
|referred to as “GGZX”);||||commitment||
||compensation|RMB150.3937million, and|||during the|
|Beijing Food Group||||s||
||arrangement|RMB162.1605 million.|||Reporting|
|Co., Ltd||||||
|||During the commitment|||Period|
|||period of profit, if the placed||||
|||assets’ accumulative actual net||||
|||profit till the end of the||||
|||current period is less then||||
|||accumulative the promised net||||
|||profit till the end of the||||
|||current period, then BGG||||
|||and GGZX should||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||compensate the listed||||
|||companies as agreed……"||||
|||“According to requirements in||||
|||the Guidance about Diluted||||
|||Immediate Return of Initial||||
|||Offering and Refunding,||||
|||Major Assets Restructuring||||
|||Related Issues of China||||
|||Securities Regulatory||||
|||Commission (announcement||||
|||of China Securities||||
|||Regulatory Commission No.||||
|||[2015]31), director and senior||||
|||managers of listed company||||
|||make the following||||
|||commitment: 1. Do not||||
|||transport interest to other units||||
|||or person with payment or||||
|||unfair terms, also, do not take||||
|Guan Ying; Song||||||
|||other methods to harm the|||the|
|Chunling; Wang Chunli;||||||
|||interest of company; 2.|||commitment|
|Wang Guofeng; Wang||||Performing||
|||Restrain the position-related|||makers|
|Jianxin; Wang Xinxin;||||according to||
||Other|consuming behavior of|||abided by the|
|Xu Laizheng; Xue|||11/02/2016|the||
||commitments|committing party; 3. Do not|||commitments|
|Chunlei; Yao Gang;||||commitment||
|||use capital of corporate assets|||during the|
|Zhang Cunliang; Zhao||||s||
|||to work on investment and|||Reporting|
|Yanming; Zhao Yinhu;||||||
|||consumption activities which|||Period|
|Zhu Hengyuan||||||
|||are irrelevant to||||
|||implementation of duty; 4.||||
|||The salary system formulated||||
|||by board of directors or salary||||
|||and assessment committee is||||
|||linked up with the||||
|||implementation of filling||||
|||return measures of the||||
|||company; 5. If the company||||
|||publishes equity incentive||||
|||policy next, the exercise||||
|||conditions of equity incentive||||
|||policy to be published is||||
|||linked up with the||||
|||implementation of filling||||
|||return measures of the||||
|||company; 6. From the date of||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||issuing the commitment to the||||
|||date of the implementation of||||
|||major assets reconstructing of||||
|||the company this time is||||
|||completed, if China Securities||||
|||Regulatory Commission||||
|||publishes other new||||
|||regulatory rules about filling||||
|||return measures and the||||
|||commitment, and the above||||
|||commitment cannot meet the||||
|||corresponding rule of China||||
|||Securities Regulatory||||
|||Commission, then||||
|||complementary commitment||||
|||will be issued according to||||
|||new rules of China Securities||||
|||Regulatory Commission.”||||
|||“The stocks which are issued||||
|||to GGZXthis time cannot be||||
|||transferred within 36 months||||
|||since the date of listed stocks.||||
|||When the above term expires,||||
|||if the GGZX does not||||
|||complete to implement the||||
|||obligations of profit||||
|||compensation which is agreed||||
|||according to Profit|||the|
|||Compensation Agreement and|||commitment|
|||||Performing||
|||the complementary|||makers|
|Beijing State-owned||||according to||
||Other|agreement, then the lockup|||abided by the|
|Capital Management|||07/29/2016|the||
||commitments|period of stocks which are|||commitments|
|Center||||commitment||
|||issued to GGZX will be|||during the|
|||||s||
|||prolonged to the date when|||Reporting|
|||GGZX completes to|||Period|
|||implement the obligations of||||
|||profit compensation. If the||||
|||information provided or||||
|||revealed for the transaction is||||
|||suspected of being involved in||||
|||false record, mislead||||
|||statement or major omission,||||
|||and judicial office places a||||
|||case on file for investigation||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||
|-|
|or China Securities|
|Regulatory Commission|
|places a case on file for|
|investigation, before forming|
|investigation conclusions,|
|committing party cannot|
|transfer the stocks with equity|
|in HaiNan Pearl River|
|Holdings Co., Ltd.|
|(hereinafter referred to as|
|“ZJKG”), and written|
|application for pausing|
|transferring and stock account|
|shall be submitted to board of|
|directors of listed company|
|within two transaction days|
|since the date that the case is|
|filed and inspection notice is|
|received. Board of directors|
|applies to Stock Exchange and|
|Registration & Settlement|
|Company for lockup directly.|
|If committing party does not|
|submit lockup application|
|within two transaction days,|
|board of directors is|
|authorized for verification,|
|after this, board of directors|
|can report the identification|
|information and account|
|information of the person to|
|Stock Exchange and|
|Registration & Settlement|
|Company directly, and the|
|board applies for lockup. If|
|board of directors does not|
|report the identification|
|information and account|
|information of committing|
|party to Stock Exchange and|
|Registration & Settlement|
|Company, Stock Exchange|
|and Registration & Settlement|
|Company are authorized to|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||lock the relevant stocks||||
|||directly. If laws violating and||||
|||regulations violating||||
|||conditions are found in||||
|||investigation conclusions,||||
|||committing party promises||||
|||that the locked stocks can be||||
|||used for compensation for||||
|||relevant investors||||
|||voluntarily."||||
|||"1. Except that the Company/I||||
|||myself, once regarded as the||||
|||limited partner with Xinniu||||
|||Runying(Tianjing) Equity||||
|||Investment Funds Partnership||||
|||Firm(limited partnership)||||
|||(hereinafter referred to as||||
|||“XNRY”)existed associated||||
|||relationships with it, the||||
|||Company/I myself didn’t exist||||
|||any associated relationships||||
|||with ZJKG, BGG, GGZX,||||
|||Guokai Finance Co.,||||
|||Ltd(hereinafter referred to as|||the|
|||“GKJR”), and JLGF. 2. the|||commitment|
|||||Performing||
|Beijing Fang Cheng||Company/I myself signed the|||makers|
|||||according to||
|Real Estate|Other|Share Transfer Agreement of|||abided by the|
||||07/29/2016|the||
|Development CO.,|commitments|Partnership Firm with Beijing|||commitments|
|||||commitment||
|Ltd; Zhao Guangsheng||Xinniu Investment Consulting|||during the|
|||||s||
|||Co., Ltd, and Xinniu|||Reporting|
|||Runying(Tianjing) Equity|||Period|
|||Investment Funds||||
|||Management Co., Ltd,||||
|||transferring all the shares of||||
|||XNRY held by the Company||||
|||to Beijing Xinniu Investment||||
|||Consulting Co., Ltd. The price||||
|||of this share transfer is based||||
|||on the initial invested amount.||||
|||Considering the 10%||||
|||return on investment per||||
|||year, the pricing of this share||||
|||transfer is not comparable||||
|||with the pricing of this||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||transaction, and there is no||||
|||associated relationship||||
|||between this transfer||||
|||agreement and this||||
|||transaction.”||||
|Beijing Xinniu||||||
|Investment Consulting||||||
|Co., Ltd; Beijing||||||
|||I myself / the Company||||
|Xingrongji Real Estate||||||
|||invested the Xinniu Funds||||
|Co., Ltd; Beijing||||||
|||with own funds without cases||||
|Zhibang Rongye||||||
|||of share-holding entrustment|||the|
|Investment Co., Ltd;||||||
|||or other equity arranfements.|||commitment|
|Shan Jinchao; Jiang||||Performing||
|||Except that I myself / the|||makers|
|Shuang; Lu Zhuohui;||||according to||
||Other|Company, once regarded as|||abided by the|
|Xinniu|||07/29/2016|the||
||commitments|the limited partner with|||commitments|
|Runying(Tianjing)||||commitment||
|||XNRY existed associated|||during the|
|Equity Investment||||s||
|||relationships with it, I myself|||Reporting|
|Funds Partnership||||||
|||/the Company didn’t exist any|||Period|
|Firm(limited||||||
|||associated relationships with||||
|partnership); Xu||||||
|||JLGF, BGG, GGZX, GKJR,||||
|Dianxiang; Yang||||||
|||and ZJKG.||||
|Hanhui; Zunhua||||||
|Dadexing Investment||||||
|Co., Ltd||||||
|||BGG will no transfer any||||
|||holding shares of ZJKG||||
|||within 12 months after the||||
|||date of this transaction ( that||||
|||is the date when the shares|||the|
|||issued to BGG listed in this|||commitment|
|||||Performing||
|||transaction) if the shares of|||makers|
|||||according to||
|Beijing Food Group|Other|ZJKG increased due to|||abided by the|
||||07/29/2016|the||
|Co., Ltd|commitments|reasons, like stock dividend,|||commitments|
|||||commitment||
|||bonus, and the increased|||during the|
|||||s||
|||share capital before the date|||Reporting|
|||of this transaction, the|||Period|
|||increased part of shares||||
|||should be in compliance with||||
|||the aforementioned regular||||
|||arrangement.||||
|Beijing Wanfa Real||“1. If ZJKG does not release||Performing|the|
||Other|||||
|Estate Development||the guarantee or security|07/29/2016|according to|commitment|
||commitments|||||
|Co., Ltd||provided for subsidiary debt||the|makers|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|in sold assets of the|commitment|abided by the|
|transaction before the second|s|commitments|
|board meeting about the||during the|
|transaction, and Pearl River||Reporting|
|Holding holds responsibilities||Period|
|for debtors or guaranteed|||
|person as guarantor, Beijing|||
|Wanfa is responsible for|||
|compensating the listed|||
|company. 2. The liabilities|||
|which are not revealed within|||
|the scope of the sold assets|||
|(subject to sold assets audit|||
|report) of the transaction by|||
|ZJKG before base date are not|||
|regarded as the liabilities|||
|related to sold assets, the|||
|liabilities are undertaken by|||
|ZJKG after settlement day.|||
|Any claim or requirement,|||
|proposed by the third party|||
|about additional liabilities, not|||
|revealed and undertaken by|||
|ZJKG in reality, exceed the|||
|additional liabilities which are|||
|recorded in financial|||
|statement on May 31, 2016|||
|(hereafter referred to as “base|||
|date”), is treated by Beijing|||
|Wanfa or entity assigned by|||
|Beijing Wanfa, and Beijing|||
|Wanfa undertakes any actual|||
|loss or expenditure of ZJKG|||
|generated by the demand or|||
|requirement of the third party.|||
|3. Except the liability within|||
|the scope of sold assets,|||
|Beijing Wanfa will|||
|compensate for liabilities and|||
|loss, expense and expenditure|||
|formed by liabilities which are|||
|not covered in audit report|||
|issued by accounting firm|||
|with qualification for|||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||securities business up to base||||
|||date of listed company to||||
|||ZJKG. 4. As the guarantor for||||
|||ZJKG to carry out Major||||
|||Assets Exchange and Issued||||
|||Stocks Purchase Assets||||
|||Agreement between All||||
|||Shareholders of Hainan Pearl||||
|||River Holding Co., Ltd. and||||
|||Beijing Food Co., Ltd.,||||
|||Beijing Wanfa, (hereafter||||
|||referred to as “Major Assets||||
|||Exchange and Issued Stocks||||
|||Purchase Assets Agreement”),||||
|||Beijing Wanfa agrees to||||
|||compensate to the counter||||
|||party of the transaction for the||||
|||loss, expense and expenditure||||
|||(including the expenditure of||||
|||agency fee such as legal||||
|||service etc) generated by||||
|||ZJKG and Beijing Wanfa||||
|||violate the statement,||||
|||guarantee or commitment||||
|||under Major Assets Exchange||||
|||and Issued Stocks Purchase||||
|||Assets Agreement. Beijing||||
|||Wanfa agrees to take||||
|||compensation responsibilities||||
|||within 60 days since the day||||
|||the listed company or counter||||
|||party undertakes the||||
|||responsibilities or loss incurs||||
|||for the above committed||||
|||issue.”||||
|||"1. BGG has clearly known||||
||||||the|
|||that ZJKG prepared to||||
||||||commitment|
|||exchange-out assets and||Performing||
||||||makers|
|||limited right defects and legal||according to||
|Beijing Food Group|Other||||abided by the|
|||risks listed in the Report of|07/29/2016|the||
|Co., Ltd|commitments||||commitments|
|||Assets Assessment, and||commitment||
||||||during the|
|||Auditor’s Report in this||s||
||||||Reporting|
|||transaction. BGG made sure||||
||||||Period|
|||that service supply partner of||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||exchanged-out assets||||
|||designated by BGG shall fully||||
|||accept exchanged-out assets||||
|||according to the conditions of||||
|||exchanged-out assets on||||
|||delivery date. 2. After the||||
|||delivery date, BGG makes||||
|||certain that exchanged-out||||
|||assets and its corresponding||||
|||business’s all rights and||||
|||duties are transferred to the||||
|||service supply partner of||||
|||exchanged-out assets||||
|||designated by BGG to enjoy||||
|||and undertake. ZJKG no||||
|||longer enjoy any rights or||||
|||undertake any duties and||||
|||responsibilities for||||
|||exchanged-out assets. 3. BGG||||
|||will help JLGF to cancel the||||
|||guarantee for other||||
|||subsidiaries of BGG before||||
|||the Second Board of Directors||||
|||related to this transaction of||||
|||ZJKG, and offer||||
|||supplementary guarantee. 、||||
|||4. The shares issued to BGG||||
|||can’t be transferred within 36||||
|||months after the date when||||
|||shares listed. If BGG hasn’t||||
|||performed the obligation of||||
|||profit compensation according||||
|||to Agreement on Profit||||
|||Compensation and its||||
|||supplementary agreement,||||
|||then the lockup period of||||
|||shares issued to BGG defers||||
|||to the date when BGG has||||
|||performed the the obligation||||
|||of profit compensation. "||||
|||"1. JLGF and its||Performing|the|
||Other|wholly-owned, holding||according to|commitment|
|Beijing Food Co., Ltd|||01/01/2014|||
||commitments|subsidiaries now don’t exist||the|makers|
|||any significant lawsuit cases||commitment|abided by the|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||and arbitration cases that are||s|commitments|
|||still not settled or predictable.|||during the|
|||2. JLGF and its|||Reporting|
|||wholly-owned , holding|||Period|
|||subsidiaries haven’t subjected||||
|||to any administrative||||
|||punishments with serious||||
|||circumstances for violating||||
|||laws and administrative rules,||||
|||like Industrial and||||
|||Commercial Law, the Tax||||
|||Law, and Law of National||||
|||Land, Food Safety,||||
|||Construction, Planning,||||
|||Environmental Protection,||||
|||Fire Protection, and Quality||||
|||Supervision since January 1,||||
|||2014. 3. The food safety||||
|||accidents haven’t happened in||||
|||JLGF and its wholly-owned,||||
|||holding subsidiaries since||||
|||January 1, 2014. "||||
|||“1. Except the revealed||||
|||conditions, ZJKG confirms to||||
|||possess the ownership and/or||||
|||right to use of the assets to be||||
|||sold legally; possess complete||||
|||and effective disposition for||||
|||the assets to be sold;||||
||||||the|
|||guarantee the assets to be sold||||
|||do not have guarantee,|||commitment|
|||||Performing||
|||mortgage, pledge to any third|||makers|
|||||according to||
|HaiNan Pearl River|Other|party and do not have unclear|||abided by the|
||||07/29/2016|the||
|Holdings Co., Ltd.|commitments|ownership, other flaws of|||commitments|
|||||commitment||
|||assets to be sold (including|||during the|
|||||s||
|||but not limited to unclear|||Reporting|
|||ownership, right is restricted,|||Period|
|||decrease in value which may||||
|||exist, it is unable to transfer, it||||
|||cannot be delivered actually||||
|||etc) or any interests and rights||||
|||of the third party, in order to||||
|||assure that the third party will||||
|||not press for payment, and to||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||
|-|
|assure that the assets to be|
|sold can be transferred to the|
|contractor of assets to be sold|
|assigned by BGG according to|
|Chinese law. 2. ZJKG will|
|negotiate with the relevant|
|parties of rights and interests|
|of the third party or other|
|limitation of rights which the|
|sold assets are set with to|
|solve the release issues of|
|other rights of the assets, and|
|the written agreement about|
|agreeing to release the|
|mortgage from mortgager of|
|the mortgage shall be got|
|before the settlement of the|
|sold assets in this transaction.|
|3. ZJKG promises that the|
|conditions of mortgage,|
|pledge or rights and interests|
|of the third party or other|
|limitation of rights which|
|restrict the transfer of|
|ownership of sold assets will|
|be released legally before the|
|settlement date of sold assets,|
|in order to ensure the sold|
|assets are deliverable. The|
|debtor and corresponding|
|guarantee person (if there is)|
|of liabilities in sold assets|
|shall issue written document|
|about agreement of transfer of|
|liabilities/assured|
|responsibilities. 4. ZJKG|
|promises that ZJKG and|
|subsidiary companies of|
|ZJKG do not have the|
|conditions of providing|
|external guarantee and it is|
|still not released, and do not|
|add new external guarantee|
|before the settlement of sold|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||assets. ZJKG will release the||||
|||guarantee or pledge provided||||
|||for the liabilities of subsidiary||||
|||companies in sold assets of||||
|||the transaction before the||||
|||second board meeting about||||
|||the transaction. 5. ZJKG plans||||
|||to purchase 100% of shares of||||
|||JLGF by assets exchange and||||
|||issued shares purchase assets||||
|||(hereafter referred to as “the||||
|||restructuring”). According to||||
|||the restructuring scheme,||||
|||non-equity assets related five||||
|||properties to be sold in||||
|||restructuring draft are as the||||
|||assets to be sold of the||||
|||company, the contractor of||||
|||sold assets will undertake||||
|||them. As the properties are in||||
|||the state of mortgage and||||
|||being closed down, the||||
|||company promises if the||||
|||transfer of ownership cannot||||
|||be completed for the||||
|||properties at the settlement||||
|||date agreed in Major Assets||||
|||Exchange and Issued Stocks||||
|||Purchase Assets Agreement||||
|||signed by each party, then the||||
|||company will compensate the||||
|||contractor of sold assets or||||
|||other parties assigned by the||||
|||contractor according to the||||
|||equal amount of appraisal||||
|||value of the properties in the||||
|||restructuring by cash, after||||
|||compensation, the properties||||
|||will not be sold any more.”||||
|Xinniu||"1. There doesn’t exist||Performing|the|
|Runying(Tianjing)||employee stock ownership||according to|commitment|
||Other|||||
|Equity Investment||plan or share-holding|07/29/2016|the|makers|
||commitments|||||
|Funds Partnership||entrustment, or equity||commitment|abided by the|
|Firm(limited||arrangement in XNRY and||s|commitments|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|partnership)||investors in various levels. 2.|||during the|
|||XNRY confirms that Jiang|||Reporting|
|||Shuang is the actual controller|||Period|
|||of XURY. XNRY calculates||||
|||through penetration that there||||
|||are 12 individual investors||||
|||who conform with the||||
|||regulations of Article 10||||
|||numbers of issuing targets is||||
|||no more than 200 in Securities||||
|||Law. 3. the investors of||||
|||XNRY are institutions and||||
|||natural person. there doesn’t||||
|||exist structured arrangement.||||
|||And it doesn’t influence the||||
|||stability of the Company’s||||
|||equity structure. 4. There||||
|||doesn’t exist any other||||
|||significant agreement||||
|||arrangement in XNRY. "||||
|||“1. The committing party and||||
|||the company which is||||
|||controlled or influenced by||||
|||the party shall avoid and||||
|||decrease the related||||
|||transaction between ZJKGand||||
|Beijing State-owned||its subsidiary companies as||||
|Capital Operation and||much as possible. For the||||
|Management Center;|Commitments|transaction which ZJKG and|||the|
|Beijing Food Group|on the|its subsidiary companies deal|||commitment|
|||||Performing||
|Co., Ltd; Guokai|horizontal|with independent third party|||makers|
|||||according to||
|Finance Co., Ltd;|competition,|through market, ZJKG and its|||abided by the|
||||07/29/2016|the||
|Xinniu|the related|subsidiary companies will|||commitments|
|||||commitment||
|Runying(Tianjing)|transaction|deal with the independent|||during the|
|||||s||
|Equity Investment|and the capital|third party. The company|||Reporting|
|Funds Partnership|occupation|which is controlled or|||Period|
|Firm(limited||influenced by committing||||
|partnership)||party will strictly avoid||||
|||lending from ZJKG and its||||
|||subsidiary companies,||||
|||occupying the capital of||||
|||ZJKG and its subsidiary||||
|||companies or using the||||
|||advanced money of ZJKG and||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||
|-|
|its subsidiary companies or|
|using the method of|
|compensating liabilities etc to|
|embezzle the capital of ZJKG.|
|2. For all necessary|
|transaction behavior between|
|committing party and the|
|company controlled or|
|influenced by the party and|
|ZJKG and its subsidiary|
|companies, each party shall|
|obey the market rules and the|
|transaction shall be carried|
|fairly and reasonably with the|
|general principles of equality|
|and mutual benefit,|
|compensation of equal value.|
|If the price of transaction is|
|fixed by government, then the|
|fixed price shall be executed;|
|if the price of transaction is|
|not fixed by government, then|
|the generally accepted price of|
|market shall be executed; if|
|the price of transaction is not|
|fixed by government and there|
|has no reference price of|
|market, the cost shall be|
|confirmed and executed|
|according to cost added|
|comparable reasonable profit.|
|3. For the related transaction|
|between committing party and|
|the company controlled or|
|influenced by the party and|
|ZJKG and its subsidiary|
|companies, necessary legal|
|procedures will be|
|implemented according to|
|regulations of ZJKG and|
|management system of related|
|transaction. When issues|
|about related transaction are|
|deliberated in authority of|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||ZJKG, avoidance obligation||||
|||shall be implemented legally||||
|||and initially; the issues about||||
|||related transaction which must||||
|||be reported to authority for||||
|||deliberation can be executed||||
|||after they are deliberated and||||
|||passed by authority. 4.||||
|||Committing party promises||||
|||that the party will not gain any||||
|||improper interests or make||||
|||ZJKG and its subsidiary||||
|||companies undertake any||||
|||obligations by related||||
|||transaction. If there is loss of||||
|||ZJKG and its subsidiary||||
|||companies caused by||||
|||violating the commitment or||||
|||the interests of ZJKG and its||||
|||subsidiary companies are||||
|||invaded by using related||||
|||transaction, the loss of ZJKG||||
|||and its subsidiary companies||||
|||is undertaken by committing||||
|||party.”||||
|||"Except the target company||||
|||and its subsidiaries, other||||
|||enterprises controlled by||||
|||commitment maker don’t||||
|||engage in any businesses by||||
|||any way that exist competition||||
||Commitments||||the|
|||or may compete with the||||
||on the||||commitment|
|||target company and its||Performing||
||horizontal||||makers|
|||subsidiaries at present. In||according to||
|Beijing Food Group|competition,||||abided by the|
|||order to avoid the horizontal|07/29/2016|the||
|Co., Ltd|the related||||commitments|
|||competition with ZJKG after||commitment||
||transaction||||during the|
|||this transaction, the||s||
||and the capital||||Reporting|
|||commitment maker||||
||occupation||||Period|
|||committees that: 1. The||||
|||commitment maker will not||||
|||directly or indirectly engage||||
|||in any business by any way,||||
|||including cooperating with||||
|||others , that is as same as,||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||similar to or competitive in||||
|||any aspects with ZJKG;||||
|||2. The commitment maker||||
|||will spare no efforts to prevent||||
|||its associated enterprises from||||
|||engaging in business that is as||||
|||same as, similar to or||||
|||competitive in any aspects||||
|||with ZJKG; 3. The||||
|||commitment maker will not||||
|||invest or control shares of the||||
|||companies, enterprises, or||||
|||other organizations whose||||
|||business is as same as, similar||||
|||to or competitive in any||||
|||aspects with ZJKG; 4. The||||
|||commitment maker will not||||
|||offer trade secrets, such as||||
|||proprietary technology, sales||||
|||channel, and clients||||
|||information to the companies,||||
|||enterprises, or other||||
|||organizations and individuals||||
|||whose business is as same as,||||
|||similar to or competitive in||||
|||any aspects with ZJKG; 5. If||||
|||the commitment maker will||||
|||prepare to engage in business||||
|||that may exists horizontal||||
|||competition with ZJKG and||||
|||its subsidiaries, the||||
|||commitment maker should||||
|||resolve it through negotiation||||
|||with ZJKG based on the||||
|||principle that ZJKG and its||||
|||subsidiaries have the priority."||||
|Beijing State-owned||The commitment maker will|||the|
|Capital Operation and||provide ZJKG with the related|||commitment|
|||||Performing||
|Management Center;||information of this transaction|||makers|
|||||according to||
|Beijing Food Group|Other|in time and guarantee that the|||abided by the|
||||07/29/2016|the||
|Co., Ltd; Beijing Wanfa|commitments|offered information is factual,|||commitments|
|||||commitment||
|Real Estate||accurate and complete. The|||during the|
|||||s||
|Development Co., Ltd;||commitment maker will|||Reporting|
|Guokai Finance Co.,||undertake compensation|||Period|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Ltd; Xinniu||liability according to law if||||
|Runying(Tianjing)||there exists any false record,||||
|Equity Investment||misleading statement or||||
|Funds Partnership||material omission, making a||||
|Firm(limited||loss to ZJKG and investors.||||
|partnership)||||||
|Beijing State-owned||The commitment makers and||||
|Capital Operation and||its management personnel||||
|Management Center;||guaranteed that there were no|||the|
|Beijing Food Group||cases where the Companies|||commitment|
|||||Performing||
|Co., Ltd; Guokai||failed to repay large debts as|||makers|
|||||according to||
|Finance Co., Ltd;|Other|scheduled or failed to fulfill|||abided by the|
||||07/29/2016|the||
|Xinniu|commitments|the commitments, or they|||commitments|
|||||commitment||
|Runying(Tianjing)||were in administrative|||during the|
|||||s||
|Equity Investment||supervision by CSRC or|||Reporting|
|Funds Partnership||punished by law by Stock|||Period|
|Firm(limited||Exchange in the past five||||
|partnership)||years.||||
|||The staff, assets, finances,||||
|||institutions, and business of||||
|||the target company are totally||||
|||independent from the||||
|||commitment maker and other||||
|||enterprises controlled by||||
|||commitment maker, there was|||the|
|||no confusion between them.|||commitment|
|||||Performing||
|||The commitment maker|||makers|
|||||according to||
|Beijing Food Group|Other|guarantee to separate the staff,|||abided by the|
||||07/29/2016|the||
|Co., Ltd|commitments|assets, finance, institutions,|||commitments|
|||||commitment||
|||and business of listed|||during the|
|||||s||
|||companies from the|||Reporting|
|||commitment maker and other|||Period|
|||enterprises controlled by||||
|||commitment maker to keep||||
|||the independence of listed||||
|||companies in staff, assets,||||
|||finance, institutions, and||||
|||business after this transaction.||||
|||"There are no such things, like||Performing|the|
|||false funding, influence on||according to|commitment|
|Beijing Food Group|Other|||||
|||legal procedure in JLGF,|07/29/2016|the|makers|
|Co., Ltd|commitments|||||
|||and it will not influence the||commitment|abided by the|
|||normal use of JLGF if its||s|commitments|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||assets with defects are|||during the|
|||existed. The commitment|||Reporting|
|||will need to compensate|||Period|
|||ZJKG and JLGF for all||||
|||economic losses with equal||||
|||amount if there are any||||
|||defects of main assets in||||
|||JLGF resulting to any||||
|||economic losses in ZJKG||||
|||and JLGF after this||||
|||significant assets||||
|||restructuring. "||||
|||"1. Speeding up the||||
|||completion of integrating the||||
|||underlying assets. After this||||
|||transaction, the Company will||||
|||speed up to integrate the||||
|||underlying assets, setting up a||||
|||more scientific and standard||||
|||operating system, expand the||||
|||market positively, keeping a||||
|||good communication with||||
|||customers, and completing the||||
|||operating plan efficiently with||||
|||the existing business concept|||the|
|||in accordance with industry|||commitment|
|||||Performing||
|||characteristics of target|||makers|
|||||according to||
|HaiNan Pearl River|Other|companies. 、2. Strengthening|||abided by the|
||||07/29/2016|the||
|Holdings Co., Ltd.|commitments|operating management and|||commitments|
|||||commitment||
|||internal control. The|||during the|
|||||s||
|||Company will strengthen|||Reporting|
|||operating management and|||Period|
|||internal control further,||||
|||improving daily operating||||
|||efficiency, cutting down||||
|||operating costs, controlling||||
|||comprehensively and||||
|||effectively the risks of||||
|||operation and management,||||
|||improving operation||||
|||efficiency. 3. Carrying out||||
|||positive policy of profit||||
|||distribution. After this||||
|||restructuring, the Company||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||will increase the return to||||
|||investors, perfect the policy of||||
|||profit distribution, increase||||
|||transparency of distribution||||
|||policy implementation, and||||
|||protect the interests of all||||
|||shareholders, setting up a||||
|||more scientific and rational||||
|||profit distribution and||||
|||decision-making mechanism||||
|||to protect the interests of||||
|||shareholders and investors||||
|||better. If the Company violate||||
|||the aforementioned||||
|||commitments, it will need to||||
|||announce its violation and the||||
|||reason. Except the force||||
|||majeure or other reasons||||
|||attributable to the Company,||||
|||the Company will need to||||
|||apologize to the shareholders||||
|||and public investors.||||
|||Meanwhile, it also needs to||||
|||provide the investors with||||
|||supplementary commitments||||
|||or substitutive commitments||||
|||to try to protect the interests||||
|||of investors. It need to carry||||
|||out the supplementary||||
|||commitments or substitutive||||
|||commitments reviewed and||||
|||approved by general meeting||||
|||of shareholders. "||||
|||"1. The commitment makers||||
|Beijing State-owned||||||
|||had the only, undisputed, and||||
|Capital Operation and|||||the|
|||exclusive rights to the shares||||
|Management Center;|||||commitment|
|||of target company. There were||Performing||
|Guokai Finance Co.,|||||makers|
|||no such cases where the||according to||
|Ltd; Xinniu|Other||||abided by the|
|||commitment makers acted for|07/29/2016|the||
|Runying(Tianjing)|commitments||||commitments|
|||the third party to hold shares,||commitment||
|Equity Investment|||||during the|
|||where lawsuits and potential||s||
|Funds Partnership|||||Reporting|
|||disputes was caused, where||||
|Firm(limited|||||Period|
|||any third party put forward||||
|partnership)||||||
|||the claim for rights to the||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||shares of target company held||||
|||by the commitment makers by||||
|||any way; 2. The||||
|||commitment makers and||||
|||management personnel(if||||
|||any)haven’t been in any||||
|||administrative||||
|||punishment(except the||||
|||punishment irrelevant to||||
|||securities market), criminal||||
|||penalties. Also, they haven’t||||
|||been involved in any||||
|||significant civil lawsuits or||||
|||arbitration related to||||
|||economic disputes; 3. The||||
|||commitment makers are||||
|||qualified to be the issuing||||
|||targets of non-public stock of||||
|||listed companies. There was||||
|||no cases where the||||
|||commitments makers can’t be||||
|||regarded as the issuing targets||||
|||as stipulated in law,||||
|||regulations, rules, and||||
|||normative documents. "||||
|||"1. The commitment makers||||
|||had the only, undisputed, and||||
|||exclusive rights to the shares||||
|||of target company. There were||||
|||no such cases where the||||
|||commitment makers acted for||||
||||||the|
|||the third party to hold shares,||||
||||||commitment|
|||where lawsuits and potential||Performing||
||||||makers|
|||disputes was caused, where||according to||
|Beijing Food Group|Other||||abided by the|
|||any third party put forward|07/29/2016|the||
|Co., Ltd|commitments||||commitments|
|||the claim for rights to the||commitment||
||||||during the|
|||shares of target company held||s||
||||||Reporting|
|||by the commitment makers by||||
||||||Period|
|||any way; 2. The||||
|||commitment makers and||||
|||management personnel(if||||
|||any)haven’t been in any||||
|||administrative||||
|||punishment(except the||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||punishment irrelevant to||||
|||securities market), criminal||||
|||penalties. Also, they haven’t||||
|||been involved in any||||
|||significant civil lawsuits or||||
|||arbitration related to||||
|||economic disputes; 3. The||||
|||commitment makers are||||
|||qualified to be the issuing||||
|||targets of non-public stock of||||
|||listed companies. There was||||
|||no cases where the||||
|||commitments makers can’t be||||
|||regarded as the issuing targets||||
|||as stipulated in law,||||
|||regulations, rules, and||||
|||normative documents; 4.||||
|||Purchasing the listed||||
|||companies is permitted. "||||
|||“The stocks which are issued||||
|||to committing party this time||||
|||cannot be transferred within||||
|||36 months since the date of||||
|||listed stocks. If the closing||||
|||price of stocks of ZJKG is||||
|||lower than offering price for||||
|||20 successive transaction days||||
|||within 6 months after the||||
||||||the|
|||transaction is completed, or||||
||||||commitment|
|||||Performing||
|||the closing price at the end of||||
||||||makers|
|||6 months is lower than||according to||
|Beijing Food Group|Other||||abided by the|
|||offering price after the|07/29/2016|the||
|Co., Ltd|commitments||||commitments|
|||transaction is completed, the||commitment||
||||||during the|
|||lockup term of stocks of||s||
||||||Reporting|
|||ZJKG which are held by||||
||||||Period|
|||committing party will be||||
|||prolonged for at least 6||||
|||months. If the information||||
|||provided or revealed for the||||
|||transaction is suspected of||||
|||being involved in false record,||||
|||mislead statement or major||||
|||omission, and judicial office||||
|||places a case on file for||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||
|-|
|investigation or China|
|Securities Regulatory|
|Commission places a case on|
|file for investigation, before|
|forming investigation|
|conclusions, committing party|
|cannot transfer the stocks with|
|equity in ZJKG, and written|
|application for pausing|
|transferring and stock account|
|shall be submitted to board of|
|directors of listed company|
|within two transaction days|
|since the date that the case is|
|filed and inspection notice is|
|received. Board of directors|
|applies to Stock Exchange and|
|Registration & Settlement|
|Company for lockup directly.|
|If committing party does not|
|submit lockup application|
|within two transaction days,|
|board of directors is|
|authorized for verification,|
|after verification, board of|
|directors can report the|
|identification information and|
|account information of the|
|person to Stock Exchange and|
|Registration & Settlement|
|Company directly, and the|
|board applies for lockup. If|
|board of directors does not|
|report the identification|
|information and account|
|information of committing|
|party to Stock Exchange and|
|Registration & Settlement|
|Company, Stock Exchange|
|and Registration & Settlement|
|Company are authorized to|
|lock the relevant stocks|
|directly. If laws violating and|
|regulations violating|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||conditions are found in||||
|||investigation conclusions,||||
|||committing party promises||||
|||that the locked stocks can be||||
|||used for compensation for||||
|||relevant investors||||
|||voluntarily.”||||
|||"The stocks which are issued||||
|||to committing party this time||||
|||cannot be transferred within||||
|||12 months since the date of||||
|||listed stocks. If the||||
|||information provided or||||
|||revealed for the transaction is||||
|||suspected of being involved in||||
|||false record, mislead||||
|||statement or major omission,||||
|||and judicial office places a||||
|||case on file for investigation||||
|||or China Securities||||
|||Regulatory Commission||||
|||places a case on file for||||
||||||the|
|Guokai Finance Co.,||investigation, before forming||||
||||||commitment|
|Ltd; Xinniu||investigation conclusions,||Performing||
||||||makers|
|Runying(Tianjing)||committing party cannot||according to||
||Other||||abided by the|
|Equity Investment||transfer the stocks with equity|07/29/2016|the||
||commitments||||commitments|
|Funds Partnership||in Pearl River Holding, and||commitment||
||||||during the|
|Firm(limited||written application for||s||
||||||Reporting|
|partnership)||pausing transferring and stock||||
||||||Period|
|||account shall be submitted to||||
|||board of directors of listed||||
|||company within two||||
|||transaction days since the date||||
|||that the case is filed and||||
|||inspection notice is received.||||
|||Board of directors applies to||||
|||Stock Exchange and||||
|||Registration & Settlement||||
|||Company for lockup directly.||||
|||If committing party does not||||
|||submit lockup application||||
|||within two transaction days,||||
|||board of directors is||||
|||authorized for verification,||||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|||after verification, board of|
|||directors can report the|
|||identification information and|
|||account information of the|
|||person to Stock Exchange and|
|||Registration & Settlement|
|||Company directly, and the|
|||board applies for lockup. If|
|||board of directors does not|
|||report the identification|
|||information and account|
|||information of committing|
|||party to Stock Exchange and|
|||Registration & Settlement|
|||Company, Stock Exchange|
|||and Registration & Settlement|
|||Company are authorized to|
|||lock the relevant stocks|
|||directly. If laws violating and|
|||regulations violating|
|||conditions are found in|
|||investigation conclusions,|
|||committing party promises|
|||that the locked stocks can be|
|||used for compensation for|
|||relevant investors voluntarily.|
|||"|
|Executed|||
||Yes||
|timely or not?|||

IV Operating result forecast for January-June 2017
Warning of a forecast deficit or considerable YoY change in the accumulative net profit made during the period from the beginning of the year to the end of the next reporting period, as well as explanation of why:
□ Applicable√ Not applicable
V Securities investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investments in derivative financial instruments
□ Applicable√ Not applicable
Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd. No such cases in the Reporting Period.
VII Visits paid to the Company in the Reporting Period for purposes of research, communication, interview, etc.
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VIII Illegal provision of guarantees for external parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s funds by the controlling shareholder or its related parties for non-operating purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd. Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by HaiNan Pearl River Holdings Co., Ltd.
March 31, 2017
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|145,198,515.20|246,504,351.39|
|Settlement reserve|||
|Interbank lendings|||
|Financial assets at fair value through profit/loss|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|13,783,788.48|16,084,139.32|
|Accounts paid in advance|85,029,876.68|67,598,789.02|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract reserve|||
|Interest receivable|2,710,880.79|2,710,880.79|
|Dividends receivable|260,015.00|260,015.00|
|Other accounts receivable|318,036,622.50|350,870,047.05|
|Financial assets purchased under agreements to|||
|resell|||
|Inventories|113,680,381.94|297,867,807.05|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets||8,714,139.07|
|Total current assets|678,700,080.59|990,610,168.69|
|Non-current assets:|||
|Loans and advances to customers|||
|Available-for-sale financial assets|30,824,994.90|30,824,994.90|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|33,288,016.55|33,866,644.98|
|Investment property|41,424,771.83|19,244,780.80|
|Fixed assets|216,785,574.09|220,409,931.29|
|Construction in progress|78,169,695.02|78,169,695.02|
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|3,648,879.08|3,692,130.10|
|R&D expenses|||
|Goodwill|||
|Long-term deferred expenses|1,549,835.13|2,083,962.89|
|Deferred tax assets|4,985,486.50|4,985,486.50|
|Other non-current assets|1,581,840.00|1,581,840.00|
|Total non-current assets|412,259,093.10|394,859,466.48|
|Total assets|1,090,959,173.69|1,385,469,635.17|
|Current liabilities:|||
|Short-term borrowings|||
|Borrowings from the Central Bank|||
|Money deposits accepted and inter-bank deposits|||
|Interbank borrowings|||
|Financial liabilities at fair value through|||
|profit/loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|17,670,161.90|77,627,005.61|
|Accounts received in advance|224,367,103.88|365,746,868.16|
|Financial assets sold for repurchase|||
|Fees and commissions payable|||
|Payroll payable|11,243,320.06|12,392,816.29|
|Taxes payable|94,264,637.00|84,404,890.27|
|Interest payable|82,587,092.77|86,294,850.36|
|Dividends payable|3,213,302.88|3,213,302.88|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Other accounts payable|584,640,314.81|541,823,806.30|
|Reinsurance premiums payable|||
|Insurance contract reserve|||
|Payables for acting trading of securities|||
|Payables for acting underwriting of securities|||
|Liabilities held for sale|||
|Non-current liabilities due within one year||78,710,181.59|
|Other current liabilities|||
|Total current liabilities|1,017,985,933.30|1,250,213,721.46|
|Non-current liabilities:|||
|Long-term borrowings|5,000,000.00|73,666,666.66|
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term accounts payable|||
|Long-term payroll payable|||
|Special payables|||
|Provisions|||
|Deferred income|||
|Deferred tax liabilities|597,896.93|597,896.93|
|Other non-current liabilities|||
|Total non-current liabilities|5,597,896.93|74,264,563.59|
|Total liabilities|1,023,583,830.23|1,324,478,285.05|
|Owners’ equity:|||
|Share capital|426,745,404.00|426,745,404.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserve|543,615,438.94|543,615,438.94|
|Less: Treasury shares|||
|Other comprehensive income|||
|Special reserve|||
|Surplus reserve|109,487,064.39|109,487,064.39|
|Provisions for general risks|||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Retained earnings|-1,001,002,487.89|-1,014,759,604.45|
|Equity attributable to owners of the Company|78,845,419.44|65,088,302.88|
|Minority interests|-11,470,075.98|-4,096,952.76|
|Total owners’ equity|67,375,343.46|60,991,350.12|
|Total liabilities and owners’ equity|1,090,959,173.69|1,385,469,635.17|

 2. Balance sheet of the Company
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|6,046,393.18|33,952,786.37|
|Financial assets at fair value through profit/loss|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|663,817.23|1,032,085.83|
|Accounts paid in advance|50,000,000.00|50,000,000.00|
|Interest receivable|||
|Dividends receivable|260,015.00|260,015.00|
|Other accounts receivable|553,760,636.82|591,785,222.60|
|Inventories|4,824,035.45|4,824,035.45|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|||
|Total current assets|615,554,897.68|681,854,145.25|
|Non-current assets:|||
|Available-for-sale financial assets|30,824,994.90|30,824,994.90|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|101,171,813.99|101,713,800.55|
|Investment property|6,308,058.38|6,383,667.53|
|Fixed assets|3,898,673.13|4,019,513.64|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Oil-gas assets|||
|Intangible assets|||
|R&D expenses|||
|Goodwill|||
|Long-term deferred expenses|232,283.31|278,707.32|
|Deferred tax assets|||
|Other non-current assets|||
|Total non-current assets|142,435,823.71|143,220,683.94|
|Total assets|757,990,721.39|825,074,829.19|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities at fair value through|||
|profit/loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|2,482,949.70|2,482,949.70|
|Accounts received in advance|38,896.41|38,896.41|
|Payroll payable|1,096,956.10|1,224,801.48|
|Taxes payable|27,517,328.47|27,537,449.60|
|Interest payable|82,468,756.03|82,468,756.03|
|Dividends payable|3,213,302.88|3,213,302.88|
|Other accounts payable|508,873,600.84|650,471,361.88|
|Liabilities held for sale|||
|Non-current liabilities due within one year|||
|Other current liabilities|||
|Total current liabilities|625,691,790.43|767,437,517.98|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Special payables|||
|Provisions|||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Deferred income|||
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total liabilities|625,691,790.43|767,437,517.98|
|Owners’ equity:|||
|Share capital|426,745,404.00|426,745,404.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserve|546,201,098.01|546,201,098.01|
|Less: Treasury shares|||
|Other comprehensive income|||
|Special reserve|||
|Surplus reserve|109,487,064.39|109,487,064.39|
|Retained earnings|-950,134,635.44|-1,024,796,255.19|
|Total owners’ equity|132,298,930.96|57,637,311.21|
|Total liabilities and owners’ equity|757,990,721.39|825,074,829.19|

 3. Consolidated income statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2017|January-March 2016|
|1. Operating revenues|250,701,694.22|80,025,245.10|
|Including: Sales income|250,701,694.22|80,025,245.10|
|Interest income|||
|Premium income|||
|Fee and commission income|||
|2. Operating costs|224,978,184.11|120,292,401.17|
|Including: Cost of sales|184,669,214.20|62,053,529.67|
|Interest expenses|||
|Fee and commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance contract|||
|reserve|||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and surtaxes|11,359,640.40|4,535,479.61|
|Selling expenses|2,813,146.35|4,500,007.25|
|Administrative expenses|26,547,201.47|24,208,857.95|
|Finance costs|3,601,893.63|24,749,365.53|
|Asset impairment loss|-4,012,911.94|245,161.16|
|Add: Profit on fair value changes (“-” means loss)|||
|Investment income (“-” means loss)|-578,628.43|-120,373.11|
|Including: Share of profit/loss of associates and|||
||-514,986.56|-93,817.01|
|joint ventures|||
|Exchange gains (“-” means loss)|||
|3. Operating profit (“-” means loss)|25,144,881.68|-40,387,529.18|
|Add: Non-operating income|218,154.56|167,838.50|
|Including: Profit on disposal of non-current|||
||168,799.75|37,402.65|
|assets|||
|Less: Non-operating expense|1,590,430.76|626,962.91|
|Including: Loss on disposal of non-current|||
||1,108.20||
|assets|||
|4. Total profit (“-” means loss)|23,772,605.48|-40,846,653.59|
|Less: Corporate income tax|8,208,612.14|29,699.94|
|5. Net profit (“-” means loss)|15,563,993.34|-40,876,353.53|
|Net profit attributable to owners of the|||
||13,757,116.56|-38,541,192.11|
|Company|||
|Minority interests’ income|1,806,876.78|-2,335,161.42|
|6. Other comprehensive income net of tax|||
|Other comprehensive income net of tax|||
|attributable to owners of the Company|||
|6.1 Other comprehensive income that will not|||
|be reclassified into profit/loss|||
|6.1.1 Changes in net liabilities or assets|||
|with a defined benefit plan upon re-measurement|||
|6.1.2 Share of other comprehensive income|||
|of investees that cannot be reclassified into|||
|profit/loss under the equity method|||
|6.2 Other comprehensive income to be|||
|subsequently reclassified into profit/loss|||
|6.2.1 Share of other comprehensive income|||
|of investees that will be reclassified into profit/loss|||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|under the equity method|||
|6.2.2 Profit/loss on fair value changes of|||
|available-for-sale financial assets|||
|6.2.3 Profit/loss on reclassifying|||
|held-to-maturity investments into available-for-sale|||
|financial assets|||
|6.2.4 Effective profit/loss on cash flow|||
|hedges|||
|6.2.5 Currency translation differences|||
|6.2.6 Other|||
|Other comprehensive income net of tax|||
|attributable to minority interests|||
|7. Total comprehensive income|15,563,993.34|-40,876,353.53|
|Attributable to owners of the Company|13,757,116.56|-38,541,192.11|
|Attributable to minority interests|1,806,876.78|-2,335,161.42|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.03|-0.09|
|8.2 Diluted earnings per share|0.03|-0.09|

 Where business mergers under the same control occurred in this Reporting Period, the net profit achieved by the merged parties before the business mergers was RMB , with the corresponding amount for the last period being RMB .
4. Income statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|January-March 2017|January-March 2016|
|1. Operating revenues|2,857.14|24,000.00|
|Less: Operating costs|75,609.15|88,898.40|
|Taxes and surtaxes|35,285.59|1,344.00|
|Selling expenses|||
|Administrative expenses|3,558,898.68|3,345,978.22|
|Finance costs|1,463,740.59|19,802,710.81|
|Asset impairment loss|-5,318,040.00|10,508.69|
|Add: profit on fair value changes (“-” means loss)|||
|Investment income (“-” means loss)|75,278,013.44|-93,817.01|
|Including: Share of profit/loss of associatesand joint ventures|||
||-514,986.56|-93,817.01|
|2. Operating profit (“-” means loss)|75,465,376.57|-23,319,257.13|
|Add: Non-operating income||37,402.65|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Including: Profit on disposal of non-current|||
|||37,402.65|
|assets|||
|Less: Non-operating expense|803,756.82|505,557.69|
|Including: Loss on disposal of non-current|||
|assets|||
|3. Total profit (“-” means loss)|74,661,619.75|-23,787,412.17|
|Less: Corporate income tax|||
|4. Net profit (“-” means loss)|74,661,619.75|-23,787,412.17|
|5. Other comprehensive income net of tax|||
|5.1 Other comprehensive income that will not be|||
|reclassified into profit and loss|||
|5.1.1 Changes in net liabilities or assets with a|||
|defined benefit plan upon re-measurement|||
|5.1.2 Share of other comprehensive income of|||
|investees that cannot be reclassified into profit/loss|||
|under the equity method|||
|5.2 Other comprehensive income to be|||
|subsequently reclassified into profit/loss|||
|5.2.1 Share of other comprehensive income of|||
|investees that will be reclassified into profit/loss|||
|under the equity method|||
|5.2.2 Profit/loss on fair value changes of|||
|available-for-sale financial assets|||
|5.2.3 Profit/loss on reclassifying|||
|held-to-maturity investments into available-for-sale|||
|financial assets|||
|5.2.4 Effective profit/loss on cash flow hedges|||
|5.2.5 Currency translation differences|||
|5.2.6 Other|||
|6. Total comprehensive income|74,661,619.75|-23,787,412.17|
|7. Earnings per share|||
|7.1 Basic earnings per share|||
|7.2 Diluted earnings per share|||

5. Consolidated cash flow statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2017|January-March 2016|
|1. Cash flows from operating activities:|||
|Cash received from sale of commodities and|||
||110,756,485.97|271,878,051.01|
|rendering of service|||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Net increase in money deposits from customers|||
|and interbank placements|||
|Net increase in loans from the Central Bank|||
|Net increase in funds borrowed from other|||
|financial institutions|||
|Cash received from premium of original|||
|insurance contracts|||
|Net cash received from reinsurance business|||
|Net increase in deposits of policy holders and|||
|investment fund|||
|Net increase in disposal of financial assets at fair|||
|value through profit/loss|||
|Interest, fees and commissions received|||
|Net increase in interbank borrowings|||
|Net increase in funds in repurchase business|||
|Tax refunds received|||
|Cash received from other operating activities|11,544,600.50|36,012,845.76|
|Subtotal of cash inflows from operating activities|122,301,086.47|307,890,896.77|
|Cash paid for goods and services|47,389,616.85|55,351,676.42|
|Net increase in loans and advances to customers|||
|Net increase in funds deposited in the Central|||
|Bank and interbank placements|||
|Cash paid for claims of original insurance|||
|contracts|||
|Interest, fees and commissions paid|||
|Cash paid as policy dividends|||
|Cash paid to and for employees|62,131,142.29|56,510,933.73|
|Taxes paid|14,923,785.96|24,943,567.32|
|Cash paid for other operating activities|75,085,116.28|46,261,558.78|
|Subtotal of cash outflows due to operating activities|199,529,661.38|183,067,736.25|
|Net cash flows from operating activities|-77,228,574.91|124,823,160.52|
|2. Cash flows from investing activities:|||
|Cash received from retraction of investments|10,000,000.00|12,000,000.00|
|Cash received as investment income||8,767.17|
|Net cash received from disposal of fixed assets,|||
||44,096,793.00|1,250,200.00|
|intangible assets and other long-term assets|||
|Net cash received from disposal of subsidiaries|||
|or other business units|||

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Cash received from other investing activities|49,136.10||
|Subtotal of cash inflows from investing activities|54,145,929.10|13,258,967.17|
|Cash paid to acquire fixed assets, intangible|||
||241,017.88|617,966.30|
|assets and other long-term assets|||
|Cash paid for investment||4,000,000.00|
|Net increase in pledged loans|||
|Net cash paid to acquire subsidiaries and other|||
|business units|||
|Cash paid for other investing activities||1,382,643.70|
|Subtotal of cash outflows due to investing activities|241,017.88|6,000,610.00|
|Net cash flows from investing activities|53,904,911.22|7,258,357.17|
|3. Cash flows from financing activities:|||
|Cash received from capital contributions|||
|Including: Cash received from minority|||
|shareholder investments by subsidiaries|||
|Cash received as borrowings|181,957,725.27|25,582,000.00|
|Cash received from issuance of bonds|||
|Cash received from other financing activities||5,890,876.56|
|Subtotal of cash inflows from financing activities|181,957,725.27|31,472,876.56|
|Repayment of borrowings|245,090,489.70|135,739,611.00|
|Cash paid for interest expenses and distribution|||
||13,129,408.07|20,454,822.21|
|of dividends or profit|||
|Including: dividends or profit paid by|||
|subsidiaries to minority interests|||
|Cash paid for other financing activities|1,720,000.00|2,372,972.50|
|Sub-total of cash outflows due to financing|||
||259,939,897.77|158,567,405.71|
|activities|||
|Net cash flows from financing activities|-77,982,172.50|-127,094,529.15|
|4. Effect of foreign exchange rate changes on cash|||
|and cash equivalents|||
|5. Net increase in cash and cash equivalents|-101,305,836.19|4,986,988.54|
|Add: Opening balance of cash and cash|||
||246,504,351.39|205,762,131.54|
|equivalents|||
|6. Closing balance of cash and cash equivalents|145,198,515.20|210,749,120.08|

 6. Cash flow statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|January-March 2017|January-March 2016|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|1. Cash flows from operating activities:|||
|Cash received from sale of commodities and|||
|||3,010,360.00|
|rendering of service|||
|Tax refunds received|||
|Cash received from other operating activities|37,335.96|81,546,191.96|
|Subtotal of cash inflows from operating activities|37,335.96|84,556,551.96|
|Cash paid for goods and services|||
|Cash paid to and for employees|1,632,281.06|2,077,411.96|
|Taxes paid|41,296.88|400,383.73|
|Cash paid for other operating activities|2,985,361.81|8,282,131.06|
|Subtotal of cash outflows due to operating activities|4,658,939.75|10,759,926.75|
|Net cash flows from operating activities|-4,621,603.79|73,796,625.21|
|2. Cash flows from investing activities:|||
|Cash received from retraction of investments|10,000,000.00|8,000,000.00|
|Cash received as investment income|||
|Net cash received from disposal of fixed assets,|||
||35,000,000.00|50,000.00|
|intangible assets and other long-term assets|||
|Net cash received from disposal of subsidiaries|||
|or other business units|||
|Cash received from other investing activities|49,136.10||
|Subtotal of cash inflows from investing activities|45,049,136.10|8,050,000.00|
|Cash paid to acquire fixed assets, intangible|||
|||5,999.00|
|assets and other long-term assets|||
|Cash paid for investment||10,000,000.00|
|Net cash paid to acquire subsidiaries and other|||
|business units|||
|Cash paid for other investing activities|||
|Subtotal of cash outflows due to investing activities||10,005,999.00|
|Net cash flows from investing activities|45,049,136.10|-1,955,999.00|
|3. Cash flows from financing activities:|||
|Cash received from capital contributions|||
|Cash received as borrowings|2,000,000.00|1,000,000.00|
|Cash received from issuance of bonds|||
|Cash received from other financing activities|||
|Subtotal of cash inflows from financing activities|2,000,000.00|1,000,000.00|
|Repayment of borrowings|66,954,800.00|66,739,611.00|

Report for the First Quarter of 2017 of HaiNan Pearl River Holdings Co., Ltd.
||||
|-|-|-|
|Cash paid for interest expenses and distribution|||
||1,659,125.50|5,105,311.08|
|of dividends or profit|||
|Cash paid for other financing activities|1,720,000.00|118,830.00|
|Sub-total of cash outflows due to financing|||
||70,333,925.50|71,963,752.08|
|activities|||
|Net cash flows from financing activities|-68,333,925.50|-70,963,752.08|
|4. Effect of foreign exchange rate changes on cash|||
|and cash equivalents|||
|5. Net increase in cash and cash equivalents|-27,906,393.19|876,874.13|
|Add: Opening balance of cash and cash|||
||33,952,786.37|479,720.71|
|equivalents|||
|6. Closing balance of cash and cash equivalents|6,046,393.18|1,356,594.84|

 IIAuditor’s report
Is this Report audited?
□ Yes√ No
This Report is not audited.
HaiNan Pearl River Holdings Co., Ltd. April 29, 2017