Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 Nanjing Putian Telecommunications Co., Ltd.
2014 Third Quarterly Report
October 2014
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 Section I. Important Note
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the Company) 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 the directors are present the meeting of the Board for deliberating the Third Quarter Report of the Company in person.
Wang Hong, person in charge of the Company, head of the accounting works Shi Lian and Qiu Huizhen, accounting body principals (accountant in charge) hereby confirms that the Financial Report of the Third Quarterly Report is authentic, accurate and complete.
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 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)|2,008,437,084.63||2,107,194,638.89||-4.69%||
|Net assets attributable to|369,712,118.07||383,210,520.22||-3.52%||
|shareholders of listed company|||||||
|(RMB)|||||||
|||||||Increase/decrease in|
|||Increase/decrease in|||||
|||||From year-begin to||comparison with|
||Current period|comparison with same|||||
|||||end of the Period||year-begin to|
|||period of last year|||||
|||||||Period-end of last year|
|Operating revenue (RMB)|567,600,845.65|5.64%||1,740,624,495.90||-0.24%|
|Net profit attributable to|-3,925,807.49|||-13,344,481.54|||
|shareholders of the listed company||27.15%||||-64.58%|
|(RMB)|||||||
|Net profit attributable to|||||||
|shareholders of the listed company|||||||
||-4,699,053.28|22.14%||-17,862,504.32||-88.00%|
|after deducting non-recurring|||||||
|gains and losses(RMB)|||||||
|Net cash flow arising from||||-108,410,403.24|||
||--|--||||-51.85%|
|operating activities(RMB)|||||||
|Basic earnings per share|-0.018|||-0.062|||
|||28.00%||||-63.16%|
|(RMB/Share)|||||||
|Diluted earnings per share|-0.018|||-0.062|||
|||28.00%||||-63.16%|
|(RMB/Share)|||||||
|Weighted average ROE|-1.06%|0.39%||-3.54%||-1.37%|

 Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin toend of the Period||
|Item||Note|
|Gains/losses from the disposal of non-current asset (including the|38,068.33||

Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014
||||
|-|-|-|
|write-off that accrued for impairment of assets)|||
|Tax returns and concessions with examine and approved ultra|||
||370.00||
|vires or without official approval documents|||
|Governmental subsidy reckoned into current gains/losses (not|||
|including the subsidy enjoyed in quota or ration according to|||
||317,251.97||
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|||Because in obtaining subsidiary|
|||Nanjing Putian Datang|
|Income from the exceeding part between investment cost of the|||
|||Information Electronic Co., Ltd,|
|Company paid for obtaining subsidiaries, associates and|||
||3,276,764.14|the investment cost lower than|
|joint-ventures and recognizable net assets fair value attributable|||
|||the fair value of recognizable net|
|to the Company when acquiring the investment|||
|||assets attributable to the|
|||Company when acquiring.|
|Gain/loss from debt restructure|10,000.00||
|Other non-operating income and expenditure except for the|||
||2,032,648.00||
|aforementioned items|||
|Less: impact on income tax|379,604.55||
|Impact on minority shareholders’ equity (post-tax)|777,475.11||
|Total|4,518,022.78|--|

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. Statement of the total common shareholders and shares-held of top ten common shareholders at end of the Period
In Share
|||||||
|-|-|-|-|-|-|
|Total common shareholders in||||||
|||12,118||||
|reporting period||||||
|Shares-held of top ten common shareholders||||||
|Shareholders|Nature of|Proportion of|Amount of shares|Amount of|Number of share pledged/frozen|

Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014
||||||||
|-|-|-|-|-|-|-|
||shareholder|shares held|held|non-tradable|||
||||||State of share|Amount|
|||||shares held|||
|China PotevioCompany Limited|State-ownedcorporate|53.49%|115,000,000|115,000,000|||
|Shanghai H.K.Wanguo Security|Overseascorporate|2.70%|5,798,541|0|||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Overseascorporate|2.48%|5,336,653|0|||
|Zhang Hui’an|Domestic natureperson|1.12%|2,400,000|0|||
|Sun Huiming|Overseas naturalperson|0.93%|1,998,510|0|||
|LI LEON ZHANWEI|Overseas naturalperson|0.68%|1,465,889|0|||
|Chen Qiang|Overseas naturalperson|0.58%|1,249,600|0|||
|Gao Lingyun|Domestic natureperson|0.47%|1,000,000|0|||
|Wang Feifei|Domestic natureperson|0.27%|584,408|0|||
|China MerchantsSecurities (HK)Co., Limited|State-ownedcorporate|0.24%|525,034|0|||
|Particular about top ten shareholders with tradable shares held|||||||
||||||Type of shares||
|Shareholders||Amount of tradable shares held|||||
||||||Type|Amount|
|Shanghai H.K. Wanguo Security||5,798,541|||Domestically||
||||||listed foreign|5,798,541|
||||||shares||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED||5,336,653|||Domestically||
||||||listed foreign|5,336,653|
||||||shares||
|Zhang Hui’an||2,400,000|||Domestically||
||||||listed foreign|2,400,000|
||||||shares||
|Sun Huiming||1,998,510|||Domestically||
|||||||1,998,510|
||||||listed foreign||

Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014
|||||
|-|-|-|-|
|||shares||
|LI LEON ZHAN WEI|1,465,889|Domestically||
|||listed foreign|1,465,889|
|||shares||
|Chen Qiang|1,249,600|Domestically||
|||listed foreign|1,249,600|
|||shares||
|Gao Lingyun|1,000,000|Domestically||
|||listed foreign|1,000,000|
|||shares||
|Wang Feifei|584,408|Domestically||
|||listed foreign|584,408|
|||shares||
|China Merchants Securities (HK)Co., Limited|525,034|Domestically||
|||listed foreign|525,034|
|||shares||
|Hu Jun|510,650|Domestically||
|||listed foreign|510,650|
|||shares||
|Explanation on associated|Among the top ten shareholders, China Potevio Company Limited is neither a related party|||
|relationship among the top ten|nor a person acting in concert with the others. It’s unknown by the Company whether there|||
|shareholders or consistent action|are related parties or persons acting in concert among the other shareholders.|||
|Explanation on shareholders||||
|involving margin business about top||||
||N/A|||
|ten common shareholders with||||
|un-restrict shares held (if 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
The shareholders of the Company have no buy-back agreement dealing in reporting period.
2. Total of shareholders with preferred stock held and the top ten shareholdings in Period-end□Applicable √Not applicable
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 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
1. impact on consolidate financial statement of the Company from new or revised accounting standards that released by Ministry of Fianance in the Year
Changes of the accounting standards shows no impact on the consolidate financial statement of the Company
2. Particular about major changes from items of main accounting statements and financial indexes as well as reasons
|||||||||
|-|-|-|-|-|-|-|-|
|Items|2014-9-30||2013-12-31||Changed amount (RMB)|+,- (%)|Main reasons for majorchanges|
|Monetary fund|279,318,841.49||430,024,326.63||-150,705,485.14|-53.95%|Payment for goodsincreased in paid duringperiod, and collection ofsales decreased|
|Account paid inadvance|20,265,333.95||33,144,854.82||-12,879,520.87|-63.55%|Payment for goods paid inadvance decreased inPeriod.|
|Otherreceivables|43,278,949.57||58,091,611.43||-14,812,661.86|-34.23%|Residual payment for theequity transfer of Yulongreceived in the Period|
|Investment realestate|10,837,679.15||4,401,316.11||6,436,363.04|59.39%|Datang Electrics includedin statement in the Year,resulted by the changes ofconsolidate statementrange|
|Notes payable|115,975,418.05||70,809,648.50||45,165,769.55|38.94%|Financing notes increasedin Period.|
|Accountreceived inadvance|49,862,102.92||77,659,452.52||-27,797,349.60|-55.75%|Payment of the goodsreceived in advance lastyear were recognized assales income while goodsdelivered in the Period|
|Retained profit|-27,833,622.04||-14,489,140.50||-13,344,481.54|-47.94%|The Company loss RMB13.34 million in the first3Q, and balance of theretained profit decreased|
|||From Jan. to||From Jan. to|Changed amount (R|+,- (%)|Main reasons for major|

Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014
|||||||||
|-|-|-|-|-|-|-|-|
|||Sept. of 2014||Sept. of 2013||||
|Investmentincome|-74,252.88||-2,832,105.21||2,757,852.33|3714.14%|Joint venture-PuzhuCompany has less loss inthe Period|
|Non-operationrevenue|6,201,776.72||2,736,540.46||3,465,236.26|55.87%|While in combined theDatang Electronic Co., theinvestment cost lower thanthe fair value ofrecognizable net assetsattributable to theCompany when acquiring,that is RMB 3.27 milliongenerated|
|Operating profit|-3,476,900.80||2,969,413.14||-6,446,313.94|-185.40%|Investment of opticalcommunication networksslow down from theoperators, market is subjectto fierce competition, andoverall gross margindeclined, and meanwhile,the period expenseincreased due to thesoaring marketdevelopment costs, humanresources cost and interestcosts etc.|
|Total profit|2,197,860.73||4,869,096.61||-2,671,235.88|-121.54%||
|Net profit|-5,231,084.10||-2,649,623.21||-2,581,460.89|-49.35%||
|Net profitattributable toowners’ ofparent company|-13,344,481.54||-8,108,322.78||-5,236,158.76|-39.24%||
|Net cash flowarising fromoperationactivities|-108,410,403.24||-71,394,779.45||-37,015,623.79|-34.14%|More payment for goodspaid in the Period,operating cash out-flowincreased|
|Net cash flowarising frominvestmentactivities|6,520,836.73||-16,596,696.34||23,117,533.07|354.52%|Residual payment for theequity transfer of Yulongreceived in the Period,cash in-flow frominvestment activityincreased y-o-y|

 II. Progress and influence of the main events as well as solution analysis specification
□ Applicable√ Not applicable
III. Commitments made by the Company or shareholders holding above5% shares of the Company in reporting period or made in previous period and extending to reporting period.
□ Applicable√ Not applicable
The Company had no commitment made by the Company or shareholders holding above5% shares of the Company in reporting
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 period or made in previous period and extending to reporting period.
IV. Estimation of operation performance for year of 2014
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.
Explanation on equity of other listed company hold
□Applicable√Not applicable
The Company had no equity of other listed company 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
|||||||
|-|-|-|-|-|-|
||||||Contents discussed and|
|Time|Place|Way|Type|Reception||
||||||material provided|
||||||Products of the Company|
|2014-09-09|The Company|Field research|Personal|Mr. Hu|and market prospect, no|
||||||materials provided|

Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 Section IV. Financial Statement
I. Financial statement
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 1. Consolidated Balance Sheet
Prepared by Nanjing Putian Telecommunications Co., Ltd. 2014-9-30 In RMB
||||
|-|-|-|
|Items|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|279,318,841.49|430,024,326.63|
|Settlement provisions|||
|Capital lent|||
|Financial assets measured by fair value and whose|||
|change is recorded in current gains and losses|||
|Notes receivable|19,081,134.81|21,919,480.05|
|Accounts receivable|849,451,946.95|789,984,001.55|
|Accounts paid in advance|20,265,333.95|33,144,854.82|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance receivable|||
|Interest receivable|||
|Dividend receivable|1,000,000.00|1,000,000.00|
|Other receivables|43,278,949.57|58,091,611.43|
|Purchase restituted finance asset|||
|Inventories|442,468,574.95|431,011,396.33|
|Divided into assets held ready for sales|||
|Non-current asset due within one year|||
|Other current assets|||
|Total current assets|1,654,864,781.72|1,765,175,670.81|
|Non-current assets:|||
|Granted loans and advances|||
|Finance asset available for sales|||
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|184,962,544.16|190,546,965.84|
|Investment property|10,837,679.15|4,401,316.11|
|Fixed assets|110,285,394.77|106,610,502.71|
|Construction in progress|19,359,444.87|16,157,767.87|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|28,127,239.96|24,302,415.55|
|Expense on Research and Development|||
|Goodwill|||
|Long-term expenses to be apportioned|||
|Deferred income tax asset|||
|Other non-current asset|||
|Total non-current asset|353,572,302.91|342,018,968.08|
|Total assets|2,008,437,084.63|2,107,194,638.89|

 Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian
Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 1. Consolidated Balance Sheet(Cont’)
Prepared by Nanjing Putian Telecommunications Co., Ltd. 2014-9-30 In RMB
||||
|-|-|-|
|Items|Balance at period-end|Balance at period-begin|
|Current liabilities:|||
|Short-term loans|425,000,000.00|462,000,000.00|
|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|||
|Notes payable|115,975,418.05|70,809,648.50|
|Accounts payable|875,466,189.01|955,777,528.37|
|Accounts received in advance|49,862,102.92|77,659,452.52|
|Selling financial asset of repurchase|||
|Commission charge and commission payable|||
|Wage payable|16,501,322.41|16,664,127.11|
|Taxes payable|9,691.81|1,544,609.90|
|Interest payable|||
|Dividend payable|1,946,045.39|1,946,045.39|
|Other accounts payable|53,502,287.33|52,249,025.93|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held ready for sale|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|1,538,263,056.92|1,638,650,437.72|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Long-term account payable|80,118.00|80,118.00|
|Special accounts payable|||
|Projected liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|80,118.00|80,118.00|
|Total liabilities|1,538,343,174.92|1,638,730,555.72|
|Owner’s equity (or shareholders’ equity):|||
|Paid-in capital (or share capital)|215,000,000.00|215,000,000.00|
|Capital public reserve|185,374,533.85|185,374,533.85|
|Less: Inventory shares|||
|Reasonable reserve|||
|Other consolidated income|||
|Surplus public reserve|589,559.77|589,559.77|
|Provision of general risk|||
|Retained profit|-27,833,622.04|-14,489,140.50|
|Balance difference of foreign currency translation|-3,418,353.51|-3,264,432.90|
|Total owner’s equity attributable to parent company|369,712,118.07|383,210,520.22|
|Minority interests|100,381,791.64|85,253,562.95|
|Total owner’s equity(or shareholders’ equity)|470,093,909.71|468,464,083.17|
|Total liabilities and owner’s equity(or shareholders’|||
||2,008,437,084.63|2,107,194,638.89|
|equity)|||

Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 2. Balance Sheet of parent company
Prepared by Nanjing Putian Telecommunications Co., Ltd. 2014-9-30 In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|173,690,946.50|243,256,318.34|
|Financial assets measured by fair value and|||
|whose change is recorded in current gains and losses|||
|Notes receivable|1,343,438.01|4,080,113.29|
|Accounts receivable|493,694,623.64|484,405,832.01|
|Accounts paid in advance|14,370,363.51|19,253,965.98|
|Interest receivable|||
|Dividend receivable|1,000,000.00|1,000,000.00|
|Other receivables|31,692,995.81|72,664,367.17|
|Inventories|203,796,641.61|215,007,723.17|
|Divided into assets held ready for sales|||
|Non-current asset due within one year|||
|Other current assets|||
|Total current assets|919,589,009.08|1,039,668,319.96|
|Non-current assets:|||
|Finance asset available for sales|||
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|355,929,862.25|356,301,955.13|
|Investment real estate|||
|Fixed assets|26,479,804.02|28,670,106.90|
|Construction in progress|18,801,006.87|16,157,767.87|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|||
||8,909,697.12|9,548,633.35|
|Expense on Research and Development|||
|Goodwill|||
|Long-term expenses to be apportioned|||
|Deferred income tax asset|||
|Other non-current asset|||
|Total non-current asset|410,120,370.26|410,678,463.25|
|Total assets|1,329,709,379.34|1,450,346,783.21|

 Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian
Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 2. Balance Sheet of parent company(Cont’)
Prepared by Nanjing Putian Telecommunications Co., Ltd. 2014-9-30 In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current liabilities:|||
|Short-term loans|326,000,000.00|356,000,000.00|
|Financial liability measured by fair value and|||
|with variation reckoned into current gains/losses|||
|Notes payable|95,529,854.40|65,529,854.40|
|Accounts payable|479,597,059.23|570,182,414.45|
|Accounts received in advance|12,505,220.48|20,352,488.47|
|Wage payable|6,034,089.89|6,287,114.97|
|Taxes payable|800,714.60|-3,416,878.08|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|162,306,697.81|156,451,289.08|
|Divided into liability held ready for sale|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|1,082,773,636.41|1,171,386,283.29|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Long-term account payable|80,118.00|80,118.00|
|Special accounts payable|||
|Projected liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|80,118.00|80,118.00|
|Total liabilities|1,082,853,754.41|1,171,466,401.29|
|Owner’s equity (or shareholders’ equity):|||
|Paid-up capital (or share capital)|215,000,000.00|215,000,000.00|
|Capital public reserve|172,417,299.81|172,417,299.81|
|Less: Inventory shares|||
|Reasonable reserve|||
|Other consolidated income|||
|Surplus public reserve|589,559.76|589,559.76|
|General risk reserve|||
|Retained profit|||
||-141,151,234.64|-109,126,477.65|
|Balance difference of foreign currency|||
|translation|||
|Total owner’s equity(or shareholders’ equity)|246,855,624.93|278,880,381.92|
|Total liabilities and owner’s equity(or|||
||1,329,709,379.34|1,450,346,783.21|
|shareholders’ equity)|||

Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian
Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 3. Consolidated Profit Statement (this report period)
Prepared by Nanjing Putian Telecommunications Co., Ltd. July-September 2014 In RMB
||||
|-|-|-|
|Item|Amount in this period|Amount in last period|
|I. Total operating income|567,600,845.65|537,302,936.14|
|Including: Operating income|567,600,845.65|537,302,936.14|
|Interest income|||
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|566,626,190.21|534,173,614.11|
|Including: Operating cost|483,329,696.81|445,182,758.13|
|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|1,939,813.46|2,663,958.06|
|Sales expenses|40,934,623.47|38,391,721.17|
|Administration expenses|33,461,820.21|37,871,339.28|
|Financial expenses|7,229,678.96|10,346,626.05|
|Losses of devaluation of asset|-269,442.70|-282,788.58|
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|-301,295.84|-948,901.72|
|Including: Investment income on affiliated company and|||
||-301,295.84|-1,053,922.90|
|joint venture|||
|Exchange income (Loss is listed with “-”)|||
|III. Operating profit (Loss is listed with “-”)|673,359.60|2,180,420.31|
|Add: Non-operating income|1,453,313.87|808,872.90|
|Less: Non-operating expense|113,941.46|236,741.14|
|Including: Disposal loss of non-current asset|-105,658.79||
|IV. Total Profit (Loss is listed with “-”)|2,012,732.01|2,752,552.07|
|Less: Income tax expense|2,180,132.04|3,921,452.26|
|V. Net profit (Net loss is listed with “-”)|-167,400.03|-1,168,900.19|
|Including: net profit realized before consolidation by mergered|||
|party|||
|Net profit attributable to owner’s of parent company|-3,925,807.49|-5,389,105.44|
|Minority shareholders’ gains and losses|3,758,407.46|4,220,205.25|
|VI. Earnings per share|--|--|
|i. Basic earnings per share|-0.018|-0.025|
|ii. Diluted earnings per share|-0.018|-0.025|
|VII. Other consolidated income|||
|Inc: Other comprehensive items un-able to re-classify as gains/losses|||
|in later accounting period|||
|Other comprehensive items able to re-classify as gains/losses|||
|in later accounting period while regulated conditions are satisfy|||
|VIII. Total comprehensive income|-167,400.03|-1,168,900.19|
|Total consolidated income attributable to owners of parent|||
||-3,925,807.49|-5,389,105.44|
|company|||
|Total consolidated income attributable to minority shareholders|3,758,407.46|4,220,205.25|

Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian
Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 4. Profit Statement of parent company (this report period)
Prepared by Nanjing Putian Telecommunications Co., Ltd. July-September 2014 In RMB
||||
|-|-|-|
|Item|Amount in this period|Amount in last period|
|I. Operating income|||
||273,149,156.40|295,831,072.27|
|Less: operating cost|||
||244,140,315.27|259,121,196.77|
|Operating tax and extras|||
||984,024.76|1,250,995.14|
|Sales expenses|19,700,957.45|20,964,109.97|
|Administration expenses|15,272,754.49|16,929,425.24|
|Financial expenses|6,019,452.97|9,799,257.25|
|Losses of devaluation of asset|||
||510,331.50|286,760.23|
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|||
||4,345,334.79|7,812,538.00|
|Including: Investment income on affiliated company and|||
||-231,365.21|-1,053,922.90|
|joint venture|||
|II. Operating profit (Loss is listed with “-”)|||
||-9,133,345.25|-4,708,134.33|
|Add: Non-operating income|||
||13,649.02|31,734.00|
|Less: Non-operating expense|||
||93,020.39|236,120.86|
|Including: Disposal loss of non-current asset|||
|III. Total Profit (Loss is listed with “-”)|||
||-9,212,716.62|-4,912,521.19|
|Less: Income tax expense|||
|IV. Net profit (Net loss is listed with “-”)|||
||-9,212,716.62|-4,912,521.19|
|V. Earnings per share|||
||--|--|
|i. Basic earnings per share|||
||-0.043|-0.023|
|ii. Diluted earnings per share|||
||-0.043|-0.023|
|VI. Other comprehensive income|||
|Inc: Other comprehensive items un-able to re-classify as gains/losses|||
|in later accounting period|||
|Other comprehensive items able to re-classify as gains/losses|||
|in later accounting period while regulated conditions are satisfy|||
|VII. Total comprehensive income|-9,212,716.62|-4,912,521.19|

 Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian
Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 5. Consolidated profit statement (from year-begin to end of this period)
Prepared by Nanjing Putian Telecommunications Co., Ltd. January-September 2014 In RMB
||||
|-|-|-|
|Item|Amount in this period|Amount in last period|
|I. Total operating income|1,740,624,495.90|1,744,860,474.96|
|Including: Operating income|1,740,624,495.90|1,744,860,474.96|
|Interest income|||
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|1,744,027,143.82|1,739,058,956.61|
|Including: Operating cost|1,491,572,232.60|1,488,190,929.68|
|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|5,049,085.73|7,358,533.73|
|Sales expenses|125,569,091.46|120,665,270.08|
|Administration expenses|97,756,348.20|100,700,671.15|
|Financial expenses|23,151,916.51|21,834,657.69|
|Losses of devaluation of asset|928,469.32|308,894.28|
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|-74,252.88|-2,832,105.21|
|Including: Investment income on affiliated company and|||
||-74,252.88|-2,916,254.37|
|joint venture|||
|Exchange income (Loss is listed with “-”)|||
|III. Operating profit (Loss is listed with “-”)|-3,476,900.80|2,969,413.14|
|Add: Non-operating income|6,201,776.72|2,736,540.46|
|Less: Non-operating expense|527,015.19|836,856.99|
|Including: Disposal loss of non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|2,197,860.73|4,869,096.61|
|Less: Income tax expense|7,428,944.83|7,518,719.82|
|V. Net profit (Net loss is listed with “-”)|-5,231,084.10|-2,649,623.21|
|Including: net profit realized before consolidation by mergered|||
|party|||
|Net profit attributable to owner’s of parent company|-13,344,481.54|-8,108,322.78|
|Minority shareholders’ gains and losses|8,113,397.44|5,458,699.57|
|VI. Earnings per share|--|--|
|i. Basic earnings per share|-0.062|-0.038|
|ii. Diluted earnings per share|-0.062|-0.038|
|VII. Other consolidated income|-153,920.61|293,104.46|
|Inc: Other comprehensive items un-able to re-classify as gains/losses in|||
||-153,920.61|293,104.46|
|later accounting period|||
|Other comprehensive items able to re-classify as gains/losses in|||
|later accounting period while regulated conditions are satisfy|||
|VIII. Total comprehensive income|-5,385,004.71|-2,356,518.75|
|Total consolidated income attributable to owners of parent|||
||-13,498,402.15|-7,815,218.32|
|company|||
|Total consolidated income attributable to minority shareholders|8,113,397.44|5,458,699.57|

Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian
Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 6. Profit Statement of parent company (from year-begin to end of this period)
Prepared by Nanjing Putian Telecommunications Co., Ltd. January-September 2014 In RMB
||||
|-|-|-|
|Items|||
||Amount in this period|Amount in last period|
|I. Operating income|||
||887,826,645.64|1,021,446,134.52|
|Less: operating cost|||
||796,778,937.05|914,400,840.86|
|Operating tax and extras|||
||2,141,852.73|3,909,458.68|
|Sales expenses|||
||61,313,470.19|64,541,375.96|
|Administration expenses|||
||43,537,220.12|42,385,782.55|
|Financial expenses|||
||19,836,071.36|19,473,612.56|
|Losses of devaluation of asset|||
||521,364.00|321,524.28|
|Add: Changing income of fair value(Loss is|||
|listed with “-”)|||
|Investment income (Loss is listed with “-”)|||
||4,502,447.12|5,950,206.53|
|Including: Investment income on affiliated|||
||-74,252.88|-2,916,254.37|
|company and joint venture|||
|II. Operating profit (Loss is listed with “-”)|||
||-31,799,822.69|-17,636,253.84|
|Add: Non-operating income|||
||28,925.02|109,974.00|
|Less: Non-operating expense|||
||253,859.32|495,798.03|
|Including: Disposal loss of non-current|||
|asset|||
|III. Total Profit (Loss is listed with “-”)|||
||-32,024,756.99|-18,022,077.87|
|Less: Income tax expense|||
|IV. Net profit (Net loss is listed with “-”)|||
||-32,024,756.99|-18,022,077.87|
|V. Earnings per share|||
||--|--|
|i. Basic earnings per share|||
||-0.149|-0.084|
|ii. Diluted earnings per share|||
||-0.149|-0.084|
|VI. Other consolidated income|||
|Inc: Other comprehensive items un-able to re-classify|||
|as gains/losses in later accounting period|||
|Other comprehensive items able to re-classify|||
|as gains/losses in later accounting period while|||
|regulated conditions are satisfy|||
|VII. Total comprehensive income|-32,024,756.99|-18,022,077.87|

 Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian
Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 7. Consolidated Cash Flow Statement (from year-begin to end of this period)
Prepared by Nanjing Putian Telecommunications Co., Ltd. January-September 2014 In RMB
||||
|-|-|-|
|Item|||
||Amount in this period|Amount in last period|
|I. Cash flows arising from operating activities:|||
|Cash received from selling commodities and providing labor|||
||1,909,909,048.73|1,788,691,986.96|
|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 disposal of transaction financial asset|||
|Cash received from interest, commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business capital|||
|Write-back of tax received|2,950,014.68|2,369,887.45|
|Other cash received concerning operating activities|64,332,169.79|22,254,797.30|
|Subtotal of cash inflow arising from operating activities|1,977,191,233.20|1,813,316,671.71|
|Cash paid for purchasing commodities and receiving labor service|1,683,218,057.00|1,516,044,312.81|
|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|153,493,404.14|140,309,443.71|
|Taxes paid|66,252,677.91|84,814,655.24|
|Other cash paid concerning operating activities|182,637,497.39|143,543,039.40|
|Subtotal of cash outflow arising from operating activities|2,085,601,636.44|1,884,711,451.16|
|Net cash flows arising from operating activities|-108,410,403.24|-71,394,779.45|
|II. Cash flows arising from investing activities:|||
|Cash received from recovering investment|10,657,600.00||
|Cash received from investment income|297,840.00|297,840.00|
|Net cash received from disposal of fixed, intangible and other|||
||27,755.10|324,840.00|
|long-term assets|||
|Net cash received from disposal of subsidiaries and other units|||
|Other cash received concerning investing activities|3,593,903.04||
|Subtotal of cash inflow from investing activities|14,577,098.14|622,680.00|
|Cash paid for purchasing fixed, intangible and other long-term assets|8,056,261.41|12,219,376.34|
|Cash paid for investment||5,000,000.00|
|Net increase of mortgaged loans|||
|Net cash received from subsidiaries and other units|||
|Other cash paid concerning investing activities|||
|Subtotal of cash outflow from investing activities|8,056,261.41|17,219,376.34|
|Net cash flows arising from investing activities|6,520,836.73|-16,596,696.34|
|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|346,000,000.00|371,000,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning financing activities|||
|Subtotal of cash inflow from financing activities|346,000,000.00|371,000,000.00|
|Cash paid for settling debts|386,100,000.00|418,100,000.00|
|Cash paid for dividend and profit distributing or interest paying|30,296,065.37|34,035,647.09|
|Including: Dividend and profit of minority shareholder paid by|||
||5,423,300.00|9,360,842.90|
|subsidiaries|||
|Other cash paid concerning financing activities|||
|Subtotal of cash outflow from financing activities|416,396,065.37|452,135,647.09|
|Net cash flows arising from financing activities|-70,396,065.37|-81,135,647.09|
|IV. Influence on cash and cash equivalents due to fluctuation in exchange|-7,420.37|-12,543.14|

Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014
||||
|-|-|-|
|rate|||
|V. Net increase of cash and cash equivalents|-172,293,052.25|-169,139,666.02|
|Add: Balance of cash and cash equivalents at the period -begin|402,037,725.25|429,693,529.41|
|VI. Balance of cash and cash equivalents at the period -end|229,744,673.00|260,553,863.39|

 Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian
Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 8. Cash Flow Statement of parent company (from year-begin to end of this period)
Prepared by Nanjing Putian Telecommunications Co., Ltd. January-September 2014 In RMB
||||
|-|-|-|
|Item|Amount in this period|Amount in last period|
|I. Cash flows arising from operating activities:|||
|Cash received from selling commodities and providing|||
||976,961,424.16|1,007,992,901.16|
|labor services|||
|Write-back of tax received|110,575.42||
|Other cash received concerning operating activities|93,877,045.01|24,237,855.94|
|Subtotal of cash inflow arising from operating activities|1,070,949,044.59|1,032,230,757.10|
|Cash paid for purchasing commodities and receiving|||
||892,139,363.39|878,572,916.69|
|labor service|||
|Cash paid to/for staff and workers|74,401,481.67|70,238,412.61|
|Taxes paid|17,714,370.73|36,921,601.03|
|Other cash paid concerning operating activities|128,045,490.29|99,436,911.13|
|Subtotal of cash outflow arising from operating activities|1,112,300,706.08|1,085,169,841.46|
|Net cash flows arising from operating activities|-41,351,661.49|-52,939,084.36|
|II. Cash flows arising from investing activities:|||
|Cash received from recovering investment|10,657,600.00||
|Cash received from investment income|4,874,540.00|9,164,300.90|
|Net cash received from disposal of fixed, intangible|||
|||3,990.00|
|and other long-term assets|||
|Net cash received from disposal of subsidiaries and|||
|other units|||
|Other cash received concerning investing activities|||
|Subtotal of cash inflow from investing activities|15,532,140.00|9,168,290.90|
|Cash paid for purchasing fixed, intangible and other|||
||6,694,207.81|10,042,677.80|
|long-term assets|||
|Cash paid for investment||5,000,000.00|
|Net cash received from subsidiaries and other units|||
|Other cash paid concerning investing activities|||
|Subtotal of cash outflow from investing activities|6,694,207.81|15,042,677.80|
|Net cash flows arising from investing activities|8,837,932.19|-5,874,386.90|
|III. Cash flows arising from financing activities|||
|Cash received from absorbing investment|||
|Cash received from loans|276,000,000.00|306,000,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning financing activities|||
|Subtotal of cash inflow from financing activities|276,000,000.00|306,000,000.00|
|Cash paid for settling debts|306,000,000.00|341,800,000.00|
|Cash paid for dividend and profit distributing or|||
||20,425,562.14|21,402,379.41|
|interest paying|||
|Other cash paid concerning financing activities|||
|Subtotal of cash outflow from financing activities|326,425,562.14|363,202,379.41|
|Net cash flows arising from financing activities|-50,425,562.14|-57,202,379.41|
|IV. Influence on cash and cash equivalents due to|||
||103,473.36|-20,078.32|
|fluctuation in exchange rate|||
|V. Net increase of cash and cash equivalents|-82,835,818.08|-116,035,928.99|
|Add: Balance of cash and cash equivalents at the|||
||217,989,348.06|267,226,515.29|
|period -begin|||
|VI. Balance of cash and cash equivalents at the period -end|135,153,529.98|151,190,586.30|

 Legal representative: Wang Hong
Person in charge of accounting works: Shi Lian
Person in charge of accounting institution: Qiu Huizhen
Nanjing Putian Telecommunications Co., Ltd. Third Quarterly Report 2014 II. Audit Report
Whether the third quarter report was audited or not
□Yes√No
The 3rd quarter report of the Company has not been audited.
Board of Directors of Nanjing Putian Telecommunications Co., Ltd. 22 October 2014