Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 Chongqing Jianshe Vehicle System Co., Ltd.
The FirstQuarterly Report 2019
2019-044
April 2019
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 1 Important notes
The Board ofDirectors，the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report.
Except the following directors, all the directors attended the board meeting for reviewing the annual Report.
|||||
|-|-|-|-|
|The name of the directors absent|Positions|Reasons for the absence|Name of the consignee|
|Yan Xuechuan|Director|Business trip|Lv Hongxian|
|Hao Lin|Director|Business trip|Li Dingqing|
|Liu Zhiqiang|Independent Director|Business trip|Peng Jue|

Mr. Lv Hongxian, The Company Leader, Mr.Tan Mingxian, Chief financial officer and the Ms.Niu Yanli, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in the report.
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 II. Basic Information of the Company
I.Main financial data and financial index
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□Yes√No
|||||
|-|-|-|-|
||||Changes of this period over|
||This period|Same period of last year|same period of last year|
||||（％）|
|Operation revenue（Yuan）|208,419,491.98|266,811,269.51|-21.89%|
|Net profit attributable to the shareholders|-15,704,995.56|55,789.60||
||||-28,250.40%|
|of the listed company（Yuan）||||
|Net profit after deducting of non-recurring||||
|gain/loss attributable to the shareholders of|-15,991,228.39|-275,476.62|5,704.93%|
|listed company（Yuan）||||
|Net Cash flow generated by business|29,472,232.97|18,706,058.10||
||||57.55%|
|operation（Yuan）||||
|Basic earning per share(Yuan/Share)|-0.1316|0.0005|-26,420.00%|
|Diluted gains per|-0.1316|0.0005||
||||-26,420.00%|
|share(Yuan/Share)(Yuan/Share)||||
|Net asset earning ratio（%）|-5.50%|0.02%|-5.52%|
||||Changes of this period-end|
||End of this period|End of last period|over same period-end of last|
||||year(%)|
|Gross assets（Yuan）|1,322,738,049.45|1,461,770,573.54|-9.51%|
|Net assets attributable to shareholders of||||
||277,596,454.98|293,301,450.54|-5.35%|
|the listed company（Yuan）||||

Items and amount of non-current gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
||Amount (Year-beginning||
|Items|to the end of the report|Notes|
||period.)||
|Govemment subsidies recognized in current gain and loss(excluding those closely related to|||
||30,000.00||
|the Company’s business and granted under the state’s policies)|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Other non-business income and expenditures other than the above|256,232.83||
|Total|286,232.83|--|

 For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Total preference shareholders with|||||||
|Total number of common|||||||||||
|||8,077||the voting power recovered at the||||0|||
|shareholders at the period-end|||||||||||
|||||end of the reporting period(if any)|||||||
|Shares held by the top 10 shareholders|||||||||||
||||||||Amount of||Pledging or freezing||
||Properties of|||Share|||tradable shares||||
|Shareholder name|||||Quantity||||Status of||
||shareholder|||proportion %|||with Conditional|||Quantity|
||||||||||the shares||
||||||||held||||
|China Military EquipmentGroup Co., Ltd.|State-owned legalperson|||71.13%|84,906,250||84,906,250||||
|Gu Zuocheng|Domestic naturalperson|||1.89%|2,261,000||2,218,750||||
|Hengsheng Sun Group Co., Ltd.|Domesticnon-state-owned legalperson|||1.47%|1,750,000||1,750,000||||
||||||||||Freeze|1,750,000|
|Liu Dan|Domestic naturalperson|||0.90%|1,071,751||0||||
|Xu Yuanhui|Domestic naturalperson|||0.56%|666,789||0||||
|Yu Lingfeng|Overseas naturalperson|||0.51%|612,921||0||||
|Chen Xinqiang|Domestic naturalperson|||0.51%|612,400||0||||
|Zhang Meilan|Domestic naturalperson|||0.43%|513,560||0||||
|Feng Yonghui|Domestic naturalperson|||0.42%|500,000||500,000||||
|Li Jianping|Domestic naturalperson|||0.37%|445,569||0||||
|Shares held by the Top 10 Shareholders of Non-restricted shares|||||||||||
||||Number of the|||Share type|||||
|Shareholders’ Names|||||||||||
||||non-restricted shares held|||Share type|||Quantity||
|Liu Dan|||1,071,751|||Foreign shares placed in|||||
||||||||||1,071,751||
|||||||domestic exchange|||||
|Xu Yuanhui|||666,789|||Foreign shares placed in|||||
||||||||||666,789||
|||||||domestic exchange|||||
|Yu Lingfeng|||612,921|||Foreign shares placed in|||||
||||||||||612,921||
|||||||domestic exchange|||||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
|||||
|-|-|-|-|
|Chen Xinqiang|612,400|Foreign shares placed in||
||||612,400|
|||domestic exchange||
|Zhang Meilan|513,560|Foreign shares placed in||
||||513,560|
|||domestic exchange||
|Li Jianping|445,569|Foreign shares placed in||
||||445,569|
|||domestic exchange||
|CORE PACIFIC-YAMAICHIINTERNATIONAL (H.K.) LIMITED|424,550|Foreign shares placed in||
||||424,550|
|||domestic exchange||
|Chen Houping|423,561|Foreign shares placed in||
||||423,561|
|||domestic exchange||
|Liu Guosheng|345,575|Foreign shares placed in||
||||345,575|
|||domestic exchange||
|Lin Fan|303,400|Foreign shares placed in||
||||303,400|
|||domestic exchange||
||There is no affiliated relationship between the top ten non-restricted tradable|||
||shareholders and the controlling shareholder China Military Equipment Group Co.,|||
||Ltd. nor do they belong to the consistent actors stipulated in the Administrative|||
|Explanation on associated relationship among|Measures for the Acquisition of Listed Companies; it is unknown to the company|||
|the aforesaid shareholders|whether there is an affiliated relationship between the top ten non-restricted tradable|||
||shareholders as well as between the top ten non-restricted tradable shareholders and|||
||the other top ten shareholders, or whether they are included in the consistent actors|||
||stipulated in the Administrative Measures for the Acquisition of Listed Companies.|||

 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 top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy–back agreement dealing in reporting period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
□ Applicable√Not applicable
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 III Significant Events
1.Significant Issues I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Not applicable
During the reporting period, the Company's product sales and sales price decreased YOY, resulting in a loss of net profit.
II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal.
√ Applicable□ Not applicable
1.Cancel the Technology Center of the branch Chongqing Jianshe Motorcycle Co., Ltd.
Chongqing Jianshe Motorcycle Co., Ltd. Branch Technology Center's business scope is motorcycle research and development, which is no longer the company's main business development direction. In order to further improve the company's business structure and reduce the level of operation, the company convened the 13th meeting of the eighth Board of Directors on January 14, 2019, and deliberated and passed the Proposal on Cancellation of Branch Technology Center (for details, see the Announcement on Cancellation of Branch Technology Center disclosed on January 16, 2019). The cancellation will not change the scope of the company's consolidated financial statements, will not affect the company's business development and sustained profitability, and will not harm the interests of the company and all shareholders.
On March 29, 2019, Chongqing Municipal Market Supervision Administration issued the Notice of Cancellation of Foreign-invested Enterprises (ZY) YZXZ Zi[2019] No. 000137, confirming that the Technology Center of the company's branch had been canceled.
2. Purchase of equity in Chongqing Jianshe HANON Automobile Thermal Management System Co., Ltd. To further highlight the development of the main business, On March 31, 2019, the company held the 15th meeting of the eighth Board of Directors to consider and pass the Proposal on the Purchase of Equity and Related Party Transactions of Chongqing Jianshe HANON Automobile Thermal Management System Co.,Ltd. On April 8, 2019, the company signed the Stock Rights Transfer Agreement with Chongqing Jianshe Mechanical and Electric Co., Ltd. to purchase24.64% equity of Jianshe Hanang held by Chongqing Jianshe Mechanical and Electric Co., Ltd. at24.64% of the appraised value, i.e. 102.7433 million yuan. On April 11, 2019, it was approved and implemented by the company's first extraordinary shareholders' meeting in 2019. On April 18, 2019, the company has already paid 102.7433 million yuan for this share transfer. After the completion of this transaction, our company and HANON respectively hold50% equity in Jianshe Hanang. According to Stock Rights Transfer Agreement, the period from the base date of this equity transfer evaluation (November 30, 2018) to the actual delivery date of the equity transfer is the transitional period of this equity transfer, during which the Company shall enjoy or bear the profits and losses arising from Jianshe HANON .
3. Joint venture Chongqing Pingshan Taikai Carburetor Co., Ltd.
In order to improve the efficiency of the use of funds, the company and other shareholders of the joint venture Pingshan Taikai reduced the registered capital of Pingshan Taikai by a total of USD 9 million, of which the
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 company holds50% equity in Pingshan Taikai and will recover the investment of USD 4.5 million. After the capital reduction is completed, the registered capital of Pingshan Taikai will be reduced from USD 19 million to USD 10 million US dollars. The capital reduction has been reviewed and approved by the 12th meeting of the eighth board of directors of the company on December 4, 2018, and by the 48th board meeting (temporary) of Pingshan Taikai on December 6, 2018.The industrial and commercial registration work for the capital reduction was completed on March 28, 2019.
||||
|-|-|-|
|Summary of material issues|Date of disclosure|Index of provisional announcement|
|Cancel the Technology Center of thebranch Chongqing Jianshe Motorcycle Co.,Ltd.||For details, please refer to the related announcements of the|
|||company disclosed on The Securities Times, Hong Kong|
||January 16,2019||
|||Commercial Daily and www.cninfo.com.cn(Announcement|
|||No.:2019-001,2019-002)|
|Purchase of equity in Chongqing JiansheHANONAutomobile Thermal Management SystemCo., Ltd.||For details, please refer to the related announcements of the|
|||company disclosed on The Securities Times, Hong Kong|
||January 16,2019||
|||Commercial Daily and www.cninfo.com.cn(Announcement|
|||No.:2019-001,2019-003)|
|||For details, please refer to the related announcements of the|
|||company disclosed on The Securities Times, Hong Kong|
||April 1,2019|Commercial Daily and www.cninfo.com.cn(Announcement|
|||No.:2019-014,2019-015, 2019-017, 2019-018, 2019-019 and|
|||2019-023)|
|Joint venture Chongqing Pingshan TaikaiCarburetor Co., Ltd.||For details, please refer to the related announcements of the|
|||company disclosed on The Securities Times, Hong Kong|
||December 5,2018||
|||Commercial Daily and www.cninfo.com.cn(Announcement|
|||No.:2018-069,2018-071)|

Progress in the implementation of share repurchase
□ Applicable√ Not applicable
Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding□ Applicable√ Not applicable
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
□ Applicable√Not applicable
No such cases in the reporting period.
IV．Prediction of Business performance for January- June 2019
Estimation of 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 of reason.
□ Applicable√ Not applicable
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 V Securities investments
□ Applicable√ Not applicable
No such cases in the Reporting Period
VI. Investment in derivatives
□ Applicable√Not applicable
No such cases in the Reporting Period
VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference
√ Applicable□Not applicable
|||||
|-|-|-|-|
||Way of|||
|Reception time||Types of visitors|Basic index|
||reception|||
||||Q: what is the purpose of acquiring the equity of Construction HANON? A:|
||||Further highlight the development of the main business, broaden the company's|
|January 16,2019|By phone|Other|business scope in the field of auto parts, upgrade and expand the product|
||||technology capabilities, and achieve product and technology structure|
||||adjustment.|
||||Q: What’s the impact of the acquisition of Construction HANON's equity on the|
||||Company? A: In the early stage namely the preparation stage and product|
||||market development stage of HANON, with the scale of production and sales of|
||||the company has not yet formed, so there will be certain losses, which will affect|
|March 26,2019|By phone|Individual||
||||the investment income of the Company. However, in the long run, it will help|
||||the Company to participate in the competition in the middle and high-end|
||||market, avoiding future market competition risks and achieving a healthy|
||||development of the Company.|

VIII. External guarantee get out of line
□ Applicable√Not applicable
No such cases in the reporting period.
IX. Controlling shareholder and its related parties occupying non-business capital of the listed company□ Applicable√Not applicable
No such cases in the reporting period.
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 IV. Financial Statement
I. Financial statement
1. Consolidated balance sheet
Prepared by:Chongqing Jianshe Vehicle System Co., Ltd.
March 31, 2019
In RMB
||||
|-|-|-|
|Items|March 31,2019|December 31,2018|
|Current asset：|||
|Monetary fund|240,606,721.21|351,903,987.18|
|Settlement provision|||
|Outgoing call loan|||
|Transactional financial assets|||
|Financial assets measured at fair value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
||279,852,232.96|302,964,300.79|
|Notes receivable & account receivable|||
||45,512,034.70|28,022,405.38|
|Including： Notes receivable|||
||234,340,198.26|274,941,895.41|
|Account receivable|||
|Prepayments|19,361,255.10|15,797,660.14|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts receivable|||
|Other account receivable|6,257,394.24|2,414,406.24|
|Including：Interest receivable|||
|Dividend receivable|||
|Repurchasing of financial assets|||
||176,712,252.35|177,566,823.26|
|Inventories|||
|Contract assets|||
|Assets held for sales|||
|Non-current asset due within 1 year|||
||3,744,178.02|4,292,742.61|
|Other current asset|||
||726,534,033.88|854,939,920.22|
|Total of current assets|||
|Non-current assets：|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Loans and payment on other’s behalf disbursed|||
|Debt investment|||
|Available for sale of financial assets|||
|Other investment on bonds|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|183,455,513.61|187,208,081.45|
|Other equity instruments investment|||
|Other non-current financial assets|||
||34,826,033.83|45,698,993.28|
|Property investment|||
|Fixed assets|343,009,757.38|341,863,883.57|
|Construction in progress|212,893.56||
|Production physical assets|||
|Oil & gas assets|||
|Use right assets|||
||23,316,783.25|23,481,249.43|
|Intangible assets|||
|Development expenses|||
|Goodwill|||
||2,619,846.56|1,912,833.34|
|Long-germ expenses to be amortized|||
||4,850,090.39|4,850,090.39|
|Deferred income tax asset|||
||3,913,096.98|1,815,521.86|
|Other non-current asset|||
||596,204,015.56|606,830,653.32|
|Total of non-current assets|||
||1,322,738,049.44|1,461,770,573.54|
|Total of assets|||
|Current liabilities|||
|Short-term loans|252,000,000.00|262,000,000.00|
|Loan from Central Bank|||
|Borrowing funds|||
|Transactional financial liabilities|||
|Financial liabilities measured at fair value with variations accounted|||
|into current income account|||
|Derivative financial liabilities|||
|Notes payable & account payable|756,536,075.56|865,358,755.60|
|Advance receipts|1,245,318.16|1,982,012.20|
|Selling of repurchased financial assets|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Deposit taking and interbank deposit|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Employees’ wage payable|4,969,207.94|3,155,693.31|
|Tax payable|16,959,170.97|19,484,228.95|
|Other account payable|11,931,821.83|14,988,432.94|
|Including：Interest payable|||
|Dividend payable|||
|Fees and commissions payable|||
|Reinsurance fee payable|||
|Contract Liabilities|||
|Liabilities held for sales|||
|Non-current liability due within 1 year|1,500,000.00|1,500,000.00|
|Other current liability|||
|Total of current liability|1,045,141,594.46|1,168,469,123.00|
|Non-current liabilities：|||
|Reserve fund for insurance contracts|||
|Long-term loan|||
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Lease liability|||
|Long-term payable|||
|Long-term remuneration payable to staff|||
|Expected liabilities|||
|Deferred income|||
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total of liability|1,045,141,594.46|1,168,469,123.00|
|Owners’ equity|||
|Share capital|119,375,000.00|119,375,000.00|
|Other equity instruments|||
|Including：preferred stock|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Sustainable debt|||
|Capital reserves|958,575,094.29|958,575,094.29|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserve|||
|Surplus reserves|125,686,000.00|125,686,000.00|
|Common risk provision|||
|Retained profit|-926,039,639.31|-910,334,643.75|
|Total of owner’s equity belong to the parent company|277,596,454.98|293,301,450.54|
|Minority shareholders’ equity|||
|Total of owners’ equity|277,596,454.98|293,301,450.54|
|Total of liabilities and owners’ equity|1,322,738,049.44|1,461,770,573.54|

 Legal Representative: Lv Hongxian Person in charge ofaccounting：Tan Mingxian Accounting Dept Leader: Niu Yanli
2.Parent Company Balance Sheet
In RMB
||||
|-|-|-|
|Items|March 31, 2019|December 31, 2018|
|Current asset：|||
|Monetary fund|65,866,400.99|66,377,117.54|
|Transactional financial assets|||
|Financial assets measured at fair value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Notes receivable & account receivable|3,396,138.17|13,806,752.51|
|Including：Notes receivable|1,000,000.00|12,106,000.00|
|Account receivable|2,396,138.17|1,700,752.51|
|Prepayments|8,367,730.54|7,910,371.97|
|Other account receivable|4,570,473.13|567,726.24|
|Including：Interest receivable|||
|Dividend receivable|||
||12,887,828.87|14,582,880.35|
|Inventories|||
|Contract assets|||
|Assets held for sales|||
|Non-current asset due within 1 year|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
||3,744,178.02|4,292,742.61|
|Other current asset|||
||98,832,749.72|107,537,591.22|
|Total of current assets|||
|Non-current assets：|||
|Debt investment|||
|Available for sale of financial assets|||
|Other investment on bonds|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|343,455,513.62|347,208,081.45|
|Other equity instruments investment|||
|Other non-current financial assets|||
||34,826,033.83|45,698,993.28|
|Property investment|||
|Fixed assets|129,731,092.74|121,333,665.76|
|Construction in progress|212,893.56||
|Production physical assets|||
|Oil & gas assets|||
|Use right assets|||
||14,903,118.28|15,007,629.61|
|Intangible assets|||
|Development expenses|||
|Goodwill|||
||2,270,305.15|1,418,480.05|
|Long-germ expenses to be amortized|||
|Deferred income tax asset|||
|Other non-current asset|||
||525,398,957.18|530,666,850.15|
|Total of non-current assets|||
||624,231,706.90|638,204,441.37|
|Total of assets|||
|Current liabilities|||
|Short-term loans|||
|Transactional financial liabilities|||
|Financial liabilities measured at fair value with variations accounted|||
|into current income account|||
|Derivative financial liabilities|||
|Notes payable & account payable|202,646,423.93|200,972,608.59|
|Advance receipts|180,083.38|180,083.38|
|Contract Liabilities|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Employees’ wage payable|1,970,664.09|185,652.20|
|Tax payable|16,231,089.95|15,239,129.76|
|Other account payable|222,347,738.82|223,902,707.22|
|Including：Interest payable|||
|Dividend payable|||
|Liabilities held for sales|||
|Non-current liability due within 1 year|||
|Other current liability|||
|Total of current liability|443,376,000.17|440,480,181.15|
|Non-current liabilities：|||
|Long-term loan|||
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Lease liability|||
|Long-term payable|||
|Long-term remuneration payable to staff|||
|Expected liabilities|||
|Deferred income|||
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total of liability|443,376,000.17|440,480,181.15|
|Owners’ equity|||
|Share capital|119,375,000.00|119,375,000.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|958,575,094.29|958,575,094.29|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserve|||
|Surplus reserves|125,686,000.00|125,686,000.00|
|Retained profit|-1,022,780,387.56|-1,005,911,834.07|

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Total of owners’ equity|180,855,706.73|197,724,260.22|
|Total of liabilities and owners’ equity|624,231,706.90|638,204,441.37|

 3.Consolidated Income statement
In RMB
||||
|-|-|-|
|||Same period of the previous|
|Items|Report period||
|||year|
|I. Income from the key business|208,419,491.98|266,811,269.51|
|Including：Business income|208,419,491.98|266,811,269.51|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|222,452,818.78|267,631,320.48|
|Including：Business cost|187,696,471.26|223,587,373.59|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net amount of withdrawal of insurance contract reserve|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|2,536,742.68|2,638,416.93|
|Sales expense|4,459,442.04|7,113,031.90|
|Administrative expense|20,307,711.48|19,150,652.77|
|R & D costs|3,296,251.21|2,589,866.14|
|Financial expenses|4,156,200.11|12,551,979.15|
|Including：Interest expense|5,151,406.45|12,536,909.63|
|Interest income|957,214.94|-19,847.41|
|Asset impairment loss|||
|Credit impairment loss|||
|Add：Other income|||
|Investment gain（“-”for loss）|-1,752,567.83|1,050,127.57|
|Including: investment gains from affiliates|-1,752,567.83|1,050,127.57|
|Gains from currency exchange|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Net exposure hedging income|||
|Changing income of fair value|||
|Income on disposal of assets|||
|III. Operational profit（“-”for loss）|-15,785,894.63|230,076.60|
|Add ：Non-operational income|286,232.83|335,820.00|
|Less: Non-operating expense||4,553.78|
|IV. Total profit(“-”for loss)|-15,499,661.80|561,342.82|
|Less：Income tax expenses|205,333.76|141,820.67|
|V. Net profit|-15,704,995.56|419,522.15|
|(I) Classification by business continuity|||
|1.Net continuing operating profit|||
|2.Termination of operating net profit|||
|(II) Classification by ownership|||
|Net profit attributable to the owners of parent company|-15,704,995.56|55,789.60|
|Minority shareholders’ equity||363,732.55|
|VI. Net after-tax of other comprehensive income|||
|Net of profit of other comprehensive income attributable to owners of t|||
|he parent company.|||
|（I）Other comprehensive income items that will not be reclassified|||
|into gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt or net|||
|assets|||
|2.Other comprehensive income under the equity method investee can n|||
|ot be reclassified into profit or loss.|||
|3. Changes in the fair value of investments in other equity instruments|||
|4. Changes in the fair value of the company’s credit risks|||
|5.Other|||
|（II）|||
|Other comprehensive income that will be reclassified into profit or loss.|||
|1.Other comprehensive income under the equity method investee can b|||
|e reclassified into profit or loss.|||
|2. Changes in the fair value of investments in other debt obligations|||
|3.Gains and losses from changes in fair value available for sale financia|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|l assets|||
|4. Other comprehensive income arising from the reclassification of|||
|financial assets|||
|5.Held-to-maturity investments reclassified to gains and losses of availa|||
|ble for sale financial assets|||
|6. Allowance for credit impairments in investments in other debt|||
|obligations|||
|7. Reserve for cash flow hedges|||
|8. Translation differences in currency financial statements|||
|9.Other|||
|Net of profit of other comprehensive income attributable to Minority|||
|shareholders’ equity|||
|VII. Total comprehensive income|-15,704,995.56|419,522.15|
|Total comprehensive income attributable to the owner of the parent|||
||-15,704,995.56|55,789.60|
|company|||
|Total comprehensive income attributable minority shareholders||363,732.55|
|VIII. Earnings per share|||
|（I）Basic earnings per share|-0.1316|0.0005|
|(II)Diluted earnings per share|-0.1316|0.0005|

 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0.00, last period the combined party realized RMB0.00.
Legal Representative: Lv Hongxian Person in charge ofaccounting：Tan Mingxian Accounting Dept Leader: Niu Yanli
4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|||Same period of the previous|
|Items|Report period||
|||year|
|I. Revenue|154,431,343.28|190,420,519.34|
|Including：Business cost|155,625,182.84|177,723,924.27|
|Business tax and surcharge|1,108,561.97|1,278,598.27|
|Sales expense|234,066.25|111,405.40|
|Administrative expense|10,887,375.39|7,327,784.02|
|R & D costs|299,740.72||
|Financial expenses|1,469,083.00|7,778,714.33|
|Including：Interest expenses|1,592,445.56|7,790,765.13|

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Interest income|3,933.11|163.70|
|Asset impairment loss||0.00|
|Credit impairment loss|||
|Add：Other income|||
|Investment gain（“-”for loss）|-1,752,567.83|1,050,127.57|
|Including: investment gains from affiliates|-1,752,567.83|1,050,127.57|
|Net exposure hedging income|||
|Changing income of fair value|||
|Income on disposal of assets|||
|II. Operational profit（“-”for loss）|-16,945,234.72|-2,749,779.38|
|Add ：Non-operational income|76,681.23|1,050.00|
|Less：Non -operational expenses||3,797.36|
|III. Total profit(“-”for loss)|-16,868,553.49|-2,752,526.74|
|Less：Income tax expenses|||
|IV. Net profit|-16,868,553.49|-2,752,526.74|
|1.Net continuing operating profit|||
|2.Termination of operating net profit|||
|V. Net after-tax of other comprehensive income|||
|（I）Other comprehensive income items that will not be reclassified|||
|into gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt or net|||
|assets|||
|2.Other comprehensive income under the equity method investee can n|||
|ot be reclassified into profit or loss.|||
|3. Changes in the fair value of investments in other equity instruments|||
|4. Changes in the fair value of the company’s credit risks|||
|5.Other|||
|（II）|||
|Other comprehensive income that will be reclassified into profit or loss.|||
|1.Other comprehensive income under the equity method investee can b|||
|e reclassified into profit or loss.|||
|2. Changes in the fair value of investments in other debt obligations|||
|3.|||
|Gains and losses from changes in fair value available for sale financial|||
|assets|||
|4. Other comprehensive income arising from the reclassification of|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|financial assets|||
|5.Held-to-maturity investments reclassified to gains and losses of availa|||
|ble for sale financial assets|||
|6. Allowance for credit impairments in investments in other debt|||
|obligations|||
|7. Reserve for cash flow hedges|||
|8. Translation differences in currency financial statements|||
|9.Other|||
|VI. Total comprehensive income|-16,868,553.49|-2,752,526.74|
|VII. Earnings per share|||
|（I）Basic earnings per share|-0.1413|-0.0231|
|(II)Diluted earnings per share|-0.1413|-0.0231|

 5. Consolidated Cash flow statement
In RMB
||||
|-|-|-|
|||Same period of the previous|
|Items|Report period||
|||year|
|I. Cash flows from operating activities|||
|Cash received from sales of goods or rending of services|88,800,738.74|86,056,249.22|
|Net increase of customer deposits and capital kept for brother|||
|company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from other financial bodies|||
|Cash received against original insurance contract|||
|Net cash received from reinsurance business|||
|Net increase of client deposit and investment|||
|Net increase of amount from disposal financial assets that measured by|||
|fair value and with variation reckoned into current gains/losses|||
|Cash received from interest, commission charge and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Net cash received by agent in securities trading|||
|Tax returned|5,164,177.22|3,812,000.49|
|Other cash received from business operation|2,101,284.84|13,176,721.25|
|Sub-total of cash inflow|96,066,200.80|103,044,970.96|

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Cash paid for purchasing of merchandise and services|31,521,904.01|38,031,605.78|
|Net increase of client trade and advance|||
|Net increase of savings in central bank and brother company|||
|Cash paid for original contract claim|||
|Net increase in financial assets held for trading purposes|||
|Net increase for Outgoing call loan|||
|Cash paid for interest, processing fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|26,906,538.41|17,590,863.16|
|Taxes paid|2,858,709.62|3,588,243.67|
|Other cash paid for business activities|5,306,815.79|25,128,200.25|
|Sub-total of cash outflow from business activities|66,593,967.83|84,338,912.86|
|Net cash generated from /used in operating activities|29,472,232.97|18,706,058.10|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment gains||3,500,000.00|
|Net cash retrieved from disposal of fixed assets, intangible assets, and|||
||20,447.77||
|other long-term assets|||
|Net cash received from disposal of subsidiaries or other operational|||
|units|||
|Other investment-related cash received|||
|Sub-total of cash inflow due to investment activities|20,447.77|3,500,000.00|
|Cash paid for construction of fixed assets, intangible assets and other|||
||2,804,989.02|936,730.00|
|long-term assets|||
|Cash paid as investment|||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|||
|Sub-total of cash outflow due to investment activities|2,804,989.02|936,730.00|
|Net cash flow generated by investment|-2,784,541.25|2,563,270.00|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Including: Cash received as investment from minor shareholders|||
|Cash received as loans|20,000,000.00||
|Cash received from bond placing|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Other financing –related cash received|226,006,425.05|241,424,641.21|
|Sub-total of cash inflow from financing activities|246,006,425.05|241,424,641.21|
|Cash to repay debts|30,950,645.83|99,388,791.66|
|Cash paid as dividend, profit, or interests|5,107,223.98|12,536,981.63|
|Including: Dividend and profit paid by subsidiaries to minor|||
|shareholders|||
|Other cash paid for financing activities|223,192,941.23|164,912,203.61|
|Sub-total of cash outflow due to financing activities|259,250,811.04|276,837,976.90|
|Net cash flow generated by financing|-13,244,385.99|-35,413,335.69|
|IV. Influence of exchange rate alternation on cash and cash equivalents|||
|V.Net increase of cash and cash equivalents|13,443,305.73|-14,144,007.59|
|Add: balance of cash and cash equivalents at the beginning of term|72,551,130.34|126,225,466.46|
|VI ..Balance of cash and cash equivalents at the end of term|85,994,436.07|112,081,458.87|

 6. Cash Flow Statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or rending of services|26,033,156.46|21,371,401.99|
|Tax returned|||
|Other cash received from business operation|63,963.21|1,213.70|
|Sub-total of cash inflow|26,097,119.67|21,372,615.69|
|Cash paid for purchasing of merchandise and services|12,755,825.18|12,431,344.85|
|Cash paid to staffs or paid for staffs|12,994,998.68|8,081,354.30|
|Taxes paid|72,338.50|821,069.29|
|Other cash paid for business activities|454,815.54|1,222,828.82|
|Sub-total of cash outflow from business activities|26,277,977.90|22,556,597.26|
|Net cash generated from /used in operating activities|-180,858.23|-1,183,981.57|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment gains||3,500,000.00|
|Net cash retrieved from disposal of fixed assets, intangible assets, and|||
||20,447.77||
|other long-term assets|||
|Net cash received from disposal of subsidiaries or other operational|||
|units|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Other investment-related cash received|||
|Sub-total of cash inflow due to investment activities|20,447.77|3,500,000.00|
|Cash paid for construction of fixed assets, intangible assets and other|||
||2,799,028.48|249,600.00|
|long-term assets|||
|Cash paid as investment|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|||
|Sub-total of cash outflow due to investment activities|2,799,028.48|249,600.00|
|Net cash flow generated by investment|-2,778,580.71|3,250,400.00|
|III. Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|||
|Cash received from bond placing|||
|Other financing –related ash received|82,360,000.00|182,301,000.00|
|Sub-total of cash inflow from financing activities|82,360,000.00|182,301,000.00|
|Cash to repay debts|0.00|0.00|
|Cash paid as dividend, profit, or interests|3,119,273.98|7,790,837.13|
|Other cash paid for financing activities|76,792,003.63|174,429,783.33|
|Sub-total of cash outflow due to financing activities|79,911,277.61|182,220,620.46|
|Net cash flow generated by financing|2,448,722.39|80,379.54|
|IV. Influence of exchange rate alternation on cash and cash equivalents|||
|V.Net increase of cash and cash equivalents|-510,716.55|2,146,797.97|
|Add: balance of cash and cash equivalents at the beginning of term|66,377,117.54|93,728,199.64|
|VI ..Balance of cash and cash equivalents at the end of term|65,866,400.99|95,874,997.61|

 II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards Governing Financial Instruments, Revenue or Leases
√ Applicable□ Not applicable
Consolidated balance sheet
In RMB
|||||
|-|-|-|-|
|Items|December 31, 2018|January 1, 2019|Adjustment|
|Current asset：||||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Monetary fund|351,903,987.18|351,903,987.18|
|Notes receivable & account receivable|302,964,300.79|302,964,300.79|
|Including：Notes receivable|28,022,405.38|28,022,405.38|
|Account receivable|274,941,895.41|274,941,895.41|
|Prepayments|15,797,660.14|15,797,660.14|
|Other account receivable|2,414,406.24|2,414,406.24|
|Inventories|177,566,823.26|177,566,823.26|
|Other current assets|4,292,742.61|4,292,742.61|
|Total of current assets|854,939,920.22|854,939,920.22|
|Non-current assets：|||
|Long term share equity investment|187,208,081.45|187,208,081.45|
|Property investment|45,698,993.28|45,698,993.28|
|Fixed assets|341,863,883.57|341,863,883.57|
|Intangible assets|23,481,249.43|23,481,249.43|
|Long-germ expenses to be amortized|1,912,833.34|1,912,833.34|
|Deferred tax assets|4,850,090.39|4,850,090.39|
|Other non-current asset|1,815,521.86|1,815,521.86|
|Total of non-current assets|606,830,653.32|606,830,653.32|
|Total of assets|1,461,770,573.54|1,461,770,573.54|
|Current liabilities|||
|Short-term loans|262,000,000.00|262,000,000.00|
|Notes payable & account payable|865,358,755.60|865,358,755.60|
|Advance payment|1,982,012.20|1,982,012.20|
|Employees’ wage payable|3,155,693.31|3,155,693.31|
|Tax payable|19,484,228.95|19,484,228.95|
|Other account payable|14,988,432.94|14,988,432.94|
|Non-current liability due within 1 year|1,500,000.00|1,500,000.00|
|Total of current liability|1,168,469,123.00|1,168,469,123.00|
|Non-current liabilities：|||
|Total of liability|1,168,469,123.00|1,168,469,123.00|
|Owners’ equity|||
|Share capital|119,375,000.00|119,375,000.00|
|Capital reserves|958,575,094.29|958,575,094.29|
|Surplus reserves|125,686,000.00|125,686,000.00|

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Retained profit|-910,334,643.75|-910,334,643.75|
|Total of owner’s equity belong to the parent|293,301,450.54||
|||293,301,450.54|
|company|||
|Total of owners’ equity|293,301,450.54|293,301,450.54|
|Total of liabilities and owners’ equity|1,461,770,573.54|1,461,770,573.54|

Adjustment statement
Parent Company Balance Sheet
In RMB
|||||
|-|-|-|-|
|Items|December 31, 2018|January 1, 2019|Adjustment|
|Current asset：||||
|Monetary fund|66,377,117.54|66,377,117.54||
|Notes receivable & account receivable|13,806,752.51|13,806,752.51||
|Including：Notes receivable|12,106,000.00|12,106,000.00||
|Account receivable|1,700,752.51|1,700,752.51||
|Prepayments|7,910,371.97|7,910,371.97||
|Other account receivable|567,726.24|567,726.24||
|inventories|14,582,880.35|14,582,880.35||
|Other current assets|4,292,742.61|4,292,742.61||
|Total of current assets|107,537,591.22|107,537,591.22||
|Non-current assets：||||
|Long term share equity investment|347,208,081.45|347,208,081.45||
|Property investment|45,698,993.28|45,698,993.28||
|Fixed assets|121,333,665.76|121,333,665.76||
|Intangible assets|15,007,629.61|15,007,629.61||
|Long-germ expenses to be amortized|1,418,480.05|1,418,480.05||
|Total of non-current assets|530,666,850.15|530,666,850.15||
|Total of assets|638,204,441.37|638,204,441.37||
|Current liabilities||||
|Notes payable & account payable|200,972,608.59|200,972,608.59||
|Advance payment|180,083.38|180,083.38||
|Employees’ wage payable|185,652.20|185,652.20||
|Tax payable|15,239,129.76|15,239,129.76||
|Other account payable|223,902,707.22|223,902,707.22||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Total of current liability|440,480,181.15|440,480,181.15|
|Non-current liabilities：|||
|Total of liability|440,480,181.15|440,480,181.15|
|Owners’ equity|||
|Share capital|119,375,000.00|119,375,000.00|
|Capital reserves|958,575,094.29|958,575,094.29|
|Surplus reserves|125,686,000.00|125,686,000.00|
|Retained profit|-1,005,911,834.07|-1,005,911,834.07|
|Total of owners’ equity|197,724,260.22|197,724,260.22|
|Total of liabilities and owners’ equity|638,204,441.37|638,204,441.37|

Adjustment statement
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards Governing Financial Instruments or Leases
□ Applicable√ Not applicable
III.Auditor’ report
Is the First Quarterly Report be audited?
□ Yes√No
The First Quarterly report is not audited.