The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd. HUBEI SANONDA CO., LTD.
THE REPORT FOR THE FIRST QUARTER OF 2016
April 2016
The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd. Section I Important Statements
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management of Hubei Sanonda 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.
An Liru, company principal, Liu Anping, chief of the accounting work and Tu Zhiwen, concurrently chief of the accounting organ (chief of accounting), hereby confirm that the financial statements enclosed in this report are 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.
The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd. Section II Financial Results and Changes in Shareholders
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 2016|January-March 2015|+/-%|
|Operating revenues (RMB)|478,019,086.56|554,976,943.28|-13.87%|
|Net profit attributable to shareholders of|8,016,805.81|77,028,787.65||
||||-89.59%|
|the Company (RMB)||||
|Net profit attributable to shareholders of||||
||-1,097,269.16|76,147,879.11|-101.44%|
|the Company after exceptional profit and||||
|loss (RMB)||||
|Net operating cash flow (RMB)|-14,737,785.00|-23,477,753.42|37.23%|
|Basic earnings per share (RMB/share)|0.0135|0.1297|-89.59%|
|Diluted earnings per share (RMB/share)|0.0135|0.1297|-89.59%|
|Weighted average return on equity (%)|0.38%|3.76%|-3.38%|
||31 March 2016|31 December 2015|+/-%|
|Total assets (RMB)|3,053,685,989.26|2,977,268,169.32|2.57%|
|Net assets attributable to shareholders of|2,107,021,267.07|2,097,382,469.60||
||||0.46%|
|the Company (RMB)||||

Exceptional profit and loss
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|Note|
|Gains/losses on the disposal of non-current assets (including the|||
||10,198,549.74||
|offset part of asset impairment provisions)|||
|Government grants recognized in the current period, except for|||
|those acquired in the ordinary course of business or granted at|||
||1,105,800.22||
|certain quotas or amounts according to the country’s unified|||
|standards|||
|Other non-operating income and expenses than the above|847,750.00||
|Less: Income tax effects|3,038,024.99||
|Total|9,114,074.97|--|

Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Profit and Loss,
The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd. or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss□ Applicable√ Not applicable
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|||||
|||63,184|||||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||||
|JingzhouSanonda GroupCo., Ltd.|State-ownedcorporation|20.15%|119,687,202||0||||
|ADAMA CelsiusB.V.|Foreign legalperson|10.60%|62,950,659||0||||
|Chen Lichun|Domestic naturalperson|1.14%|6,790,954||0||||
|State-OwnedAssetsAdministrationBureau of QichunCounty|Nation|0.70%|4,169,266||0||||
|Jiang Jian|Domestic naturalperson|0.61%|3,595,123||0||||
|China SecuritiesFinanceCorporationLimited|Other|0.47%|2,817,300||0||||
|Norges Bank|Foreigncorporation|0.44%|2,634,504||0||||
|ICBC - LionSmall-and-medium Sized|Other|0.42%|2,480,384||0||||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|Enterprises ListedCompanies ValueSelection StockFund|||||||
|Bank of ChinaLimited - TedaManulife JiliBond-typeSecuritiesInvestment Fund|Other|0.38%|2,252,947|0|||
|ICBC - JT TianfuReformNew-powerFlexibleConfigurationHybrid SecuritiesInvestment Fund|Other|0.36%|2,160,078|0|||
|Shareholdings of top ten non-restricted shareholders|||||||
||||||Variety of shares||
|Name of shareholder||Number of non-restricted shares held|||||
||||||Variety|Number|
|Jingzhou Sanonda Group Co., Ltd.||119,687,202|||RMB common||
|||||||119,687,202|
||||||shares||
|ADAMA Celsius B.V.||62,950,659|||Domestically||
||||||listed foreign|62,950,659|
||||||shares||
|Chen Lichun||6,790,954|||RMB common||
|||||||6,790,954|
||||||shares||
|State-Owned Assets AdministrationBureau of Qichun County||4,169,266|||RMB common||
|||||||4,169,266|
||||||shares||
|Jiang Jian||3,595,123|||RMB common||
|||||||3,595,123|
||||||shares||
|China Securities FinanceCorporation Limited||2,817,300|||RMB common||
|||||||2,817,300|
||||||shares||
|Norges Bank||2,634,504|||Domestically||
||||||listed foreign|2,634,504|
||||||shares||
|ICBC - Lion Small-and-mediumSized Enterprises Listed CompaniesValue Selection Stock Fund||2,480,384|||||
||||||RMB common||
|||||||2,480,384|
||||||shares||
|Bank of China Limited - Teda||2,252,947|||RMB common|2,252,947|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
|||||
|-|-|-|-|
|Manulife Jili Bond-type SecuritiesInvestment Fund||shares||
|ICBC - JT Tianfu ReformNew-power Flexible ConfigurationHybrid Securities Investment Fund|2,160,078|||
|||RMB common||
||||2,160,078|
|||shares||
||Sanonda Group Corporation and Celsius Property B.V. are related parties, and under the same|||
||control of China National Chemical Agrochemical Corporation, and are acting-in-concert|||
|Related or acting-in-concert parties||||
||parties as prescribed in the Administrative Methods for Acquisition of Listed Companies. It is|||
|among the above shareholders||||
||unknown whether the other shareholders are related parties or acting-in-concert parties as|||
||prescribed in the Administrative Methods for Acquisition of Listed Companies.|||
||1. The shareholder Chen Lichun held 6,309,732 shares of the Company through credit|||
||collateral securities trading account and held 481,222 shares of the Company through|||
|Top ten common shareholders||||
||common stock account that held 6,790,954 shares of the Company in total. 2. The shareholder|||
|conducting securities margin trading||||
||Jiang Jian held 3,415,123 hares of the Company through credit collateral securities trading|||
|(if any)||||
||account and held 180,000 shares of the Company through common stock account that held|||
||3,595,123 shares of the Company in total.|||

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
The Report for the First Quarter of2016—Hubei Sanonda 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
||||||
|-|-|-|-|-|
|Financialstatement item|31 March 2016(RMB’0,000)|31 December2015(RMB’0,000)|+/-%|Main reason for change|
||(January-March2016)|(January-March2015)|||
|Accountsreceivable|30,577|18,045|69.45%|Payments collected from customers decreased.|
|Accounts paid inadvance|2,774|2,041|35.87%|Prepayments for materials increased.|
|Other accountsreceivable|1,321|985|34.18%|The receivable for land increased.|
|Short-termborrowings|0|2,000|-100.00%|Borrowings were repaid to banks.|
|Accounts receivedin advance|1,301|2,667|-51.23%|Advances from customers decreased.|
|Notes payable|1,000|0||Banker’s acceptance bills newly adopted|
|Payroll payable|1,336|3,031|-55.92%|Some remuneration for the prior period was paid in thecurrent period.|
|Interest payable|37|112|-66.63%|Some of the interest on bank borrowings was paid.|
|Long-term accountpayable|0|65|-100.00%|Settled|
|Other non-currentliabilities|12,000|0||A new amount from a fund of the Agricultural DevelopmentBank of China|
|Selling expenses|1,890|1,111|70.06%|Freight charges increased.|
|Administrativeexpenses|3,261|2,507|30.08%|Production halt loss increased.|
|Financial costs|799|416|92.05%|The capitalized interest decreased while the interestexpenditure increased.|
|Asset impairmentloss|909|1,516|-40.01%|Falling price provisions decreased.|
|Non-operatingincome|1,215|118|931.38%|Earnings on disposal of intangible assets increased.|

Corporte income 178 2,676 -93.36%Total
profit decreased.
The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||||
|-|-|-|-|-|
|tax|||||
|Net profitattributable toowners of theCompany|802|7,703|-89.59%|The sales revenue and the gross profit margin both decreased.|

II Progress of significant events and analysis& explanations on their influence and solutions√ Applicable□ Not applicable
During the Reporting Period, owning to the Company was planning significant assets reorganization project, theCompany’s shares delisted since 5 August 2015 and as for the details of the progress of the reorganization project, please refer to the Announcement on the Progress of the Significant Assets Reorganization disclosed all previous.
||||
|-|-|-|
|||Index of the interim report disclosure|
|Summary of the significant events|Disclosure date||
|||website|

III Commitments of the Company, its shareholders, actual controller, acquirer, directors, supervisors, senior management or other related parties fulfilled in the Reporting Period or ongoing at the period-end
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Date of|||
||Commitment|Type of|||Term of||
|Commitment|||Contents|commitment||Fulfillment|
||maker|commitment|||commitment||
|||||making|||
|Commitments made in share reform|||||||
||||I.||||
||||Commitments||||
||||on avoiding||||
||||horizontal||||
||||competition:||||
|||||||The|
|||Commitments|1. except for||||
|||||||commitments|
|||on the|the Company||||
||ADAMA|||||were being|
|||horizontal|proposed||||
|Commitments made in acquisition|Celsius B.V.;|||||carried out|
|||competition,|conducting||||
|documents or shareholding alteration|ADAMA|||2013-09-07|2020-09-06|and the|
|||the related|transaction||||
|documents|Agricultural|||||commitment|
|||transaction|may lead to||||
||Solutions Ltd.|||||makers abided|
|||and the capital|competition in||||
|||||||by the above|
|||occupation|domestic trade||||
|||||||commitments.|
||||with Shenzhen||||
||||NOPOSION||||
||||Agrochemical||||
||||Co., Ltd.||||
||||disclosed in||||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||
|-|
|the B Shares|
|Offer|
|Acquisition|
|Report of|
|Hubei|
|Sanonda CO.,|
|Ltd. The|
|Company will|
|take effective|
|measures to|
|avoid the|
|Company and|
|its controlling|
|subsidiaries|
|engaged in the|
|same or|
|similar|
|business with|
|Hubei|
|Sanonda CO.,|
|Ltd. within the|
|territory.2. If|
|the Company|
|or its|
|controlling|
|subsidiaries|
|domestically|
|conduct|
|related|
|business|
|which form|
|horizontal|
|competition|
|with Hubei|
|Sanonda CO.,|
|Ltd. in future|
|(including|
|related|
|business of the|
|Company|
|proposed|
|conducting|
|transaction|
|may lead to|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||
|-|
|competition in|
|domestic trade|
|with Shenzhen|
|NOPOSION|
|Agrochemical|
|Co., Ltd.|
|disclosed in|
|the B Shares|
|Offer|
|Acquisition|
|Report of|
|Hubei|
|Sanonda CO.,|
|Ltd.) The|
|Company will|
|according to|
|the securities|
|laws and|
|regulations|
|and industry|
|policy within|
|7 years or|
|when the|
|management|
|think the|
|condition is|
|ripe to|
|actively take|
|steps,|
|gradually|
|eliminate the|
|competition,|
|the concrete|
|measures|
|including but|
|not limited to|
|the following|
|one or more:|
|fight for|
|internal assets|
|reconstruction|
|, (including|
|putting the|
|business into|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||Hubei||||
|||Sanonda CO.,||||
|||Ltd. or||||
|||operated||||
|||through Hubei||||
|||Sanonda CO.,||||
|||Ltd. ) to adjust||||
|||the industrial||||
|||plan and||||
|||business||||
|||structure, to||||
|||transform||||
|||technology||||
|||and to upgrade||||
|||products, to||||
|||divide the||||
|||market so as||||
|||to make each||||
|||corporation||||
|||differ in the||||
|||products and||||
|||its ultimate||||
|||users, thus to||||
|||avoid and||||
|||eliminate the||||
|||current||||
|||domestic||||
|||horizontal||||
|||competition||||
|||between the||||
|||Company’s||||
|||controlling||||
|||subsidiaries||||
|||and Sanonda.||||
|||II.||||
||||||The|
||Commitments|Commitments||||
||||||commitments|
||on the|on||||
|ADAMA|||||were being|
||horizontal|maintaining||||
|Celsius|||||carried out|
||competition,|the||||
|B.V.;ADAMA|||2013-09-07|9999-12-31|and the|
||the related|Company’s||||
|Agricultural|||||commitment|
||transaction|operation||||
|Solutions Ltd.|||||makers abided|
||and the capital|independence||||
||||||by the above|
||occupation|and specify||||
||||||commitments.|
|||the related||||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||
|-|
|transaction: 1.|
|After the|
|complement|
|of the tender|
|offer, Sanonda|
|will continue|
|to maintain|
|complete|
|purchase,|
|production|
|and sales|
|system, and to|
|gain the|
|independent|
|intellectual|
|property. The|
|Company and|
|its direct or|
|indirect|
|controlling|
|shareholders|
|and Sanonda|
|of which the|
|personnel,|
|assets,|
|finance,|
|business and|
|institutions|
|will be|
|completely|
|separated, and|
|at the same|
|time maintain|
|the operation|
|ability of|
|Sanonda that|
|independently|
|face to the|
|China|
|agrochemical|
|industry|
|market. 2. The|
|Company will|
|avoid and|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||
|-|
|reduce the|
|related|
|transactions|
|with Sanonda|
|according to|
|the|
|requirements|
|stipulated by|
|the laws,|
|regulations|
|and other|
|normative|
|documents;|
|but for those|
|related|
|transactions|
|that are|
|inevitable or|
|occur with|
|reasonable|
|cause, will|
|have to obey|
|the just, fair|
|and open|
|market|
|principles.|
|And to sign|
|the agreement|
|according to|
|the law and to|
|carry out legal|
|program, and|
|to make sure|
|not to harm|
|the legal|
|interest of|
|Sanonda and|
|other|
|shareholders|
|by related|
|transaction|
|according to|
|the Articles of|
|Association of|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||Sanonda, the||||
|||relevant||||
|||system about||||
|||related||||
|||transaction||||
|||and to conduct||||
|||the duty of||||
|||information||||
|||disclosure as||||
|||well as the||||
|||approval||||
|||process which||||
|||stipulated by||||
|||the relevant||||
|||regulations."||||
|||I.||||
|||Commitments||||
|||on avoiding||||
|||horizontal||||
|||competition:||||
|||1. The||||
|||business of the||||
|||Company’s||||
|||subsidiaries--||||
|||Jiangsu Anpon||||
|||Electrochemic|||The|
||Commitments|||||
|||al Co., Ltd.,|||commitments|
||on the|||||
|||Anhui|||were being|
|China|horizontal|||||
|||Petroleum|||carried out|
|National|competition,|||||
|||Chemical|2013-09-07|2020-09-06|and the|
|Chemical|the related|||||
|||Group Co.,|||commitment|
|Corporation|transaction|||||
|||Ltd.,|||maker abided|
||and the capital|||||
|||Shangdong|||by the above|
||occupation|||||
|||Dacheng|||commitments.|
|||Agrochemical||||
|||Co., Ltd. and||||
|||Jiamusi||||
|||Heilong||||
|||Agrochemical||||
|||s Co., Ltd.,||||
|||and Hunan||||
|||Haohua||||
|||Chemical Co.,||||
|||Ltd. and its||||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||
|-|
|subsidiary had|
|the same or|
|similar|
|situations with|
|the main|
|business of|
|Sanonda, and|
|aimed at the|
|domestic|
|horizontal|
|competition,|
|the Company|
|committed to|
|gradually|
|eliminate such|
|kind of|
|horizontal|
|competition in|
|the future and|
|to fight for the|
|internal assets|
|reconstruction|
|, to adjust the|
|industrial plan|
|and business|
|structure, to|
|transform|
|technology|
|and to upgrade|
|products, to|
|divide the|
|market so as|
|to make each|
|corporation|
|differ in the|
|products and|
|its ultimate|
|users|
|according to|
|the securities|
|laws and|
|regulations|
|and industry|
|policy within|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||
|-|
|7 years, thus|
|to eliminate|
|the current|
|domestic|
|horizontal|
|competition|
|between the|
|Company’s|
|controlling|
|subsidiaries|
|and Sanonda.|
|2. Excepting|
|the|
|competition|
|situation|
|disclosed in|
|the offer|
|acquisition|
|report, the|
|Company take|
|effective|
|measures to|
|avoid the|
|Company and|
|its controlling|
|subsidiaries|
|( excepting|
|Commitments|
|respectively|
|made in|
|acquisition|
|report by|
|Celsius|
|Property B.V.|
|and MAI )’|
|new increased|
|business|
|engaged in the|
|same or|
|similar|
|business with|
|Hubei|
|Sanonda CO.,|
|Ltd. within the|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||
|-|
|territory in|
|future. 3. If|
|the Company|
|or its|
|controlling|
|subsidiaries|
|(excepting|
|Commitments|
|respectively|
|made in|
|acquisition|
|report by|
|Celsius|
|Property B.V.|
|and MAI)|
|domestically|
|conduct|
|related|
|business|
|which form|
|horizontal|
|competition|
|with Hubei|
|Sanonda CO.,|
|Ltd. in future,|
|the Company|
|will actively|
|take steps,|
|gradually|
|eliminate the|
|competition,|
|the concrete|
|measures|
|including but|
|not limited to|
|fight for|
|internal assets|
|reconstruction|
|, (including|
|putting the|
|business into|
|Hubei|
|Sanonda CO.,|
|Ltd. or|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||operated||||
|||through Hubei||||
|||Sanonda CO.,||||
|||Ltd.) to adjust||||
|||the industrial||||
|||plan and||||
|||business||||
|||structure, to||||
|||transform||||
|||technology||||
|||and to upgrade||||
|||products, to||||
|||divide the||||
|||market so as||||
|||to make each||||
|||corporation||||
|||differ in the||||
|||products and||||
|||its ultimate||||
|||users, thus to||||
|||avoid and||||
|||eliminate the||||
|||current||||
|||domestic||||
|||horizontal||||
|||competition||||
|||between the||||
|||Company’s||||
|||controlling||||
|||subsidiaries||||
|||and Sanonda.||||
|||II.||||
|||Commitments||||
|||on|||The|
||Commitments|||||
|||maintaining|||commitments|
||on the|||||
|||the|||were being|
|China|horizontal|||||
|||Company’s|||carried out|
|National|competition,|||||
|||operation|2013-09-07|9999-12-31|and the|
|Chemical|the related|||||
|||independence|||commitment|
|Corporation|transaction|||||
|||and specify|||maker abided|
||and the capital|||||
|||the related|||by the above|
||occupation|||||
|||transaction: 1.|||commitments.|
|||After the||||
|||complement||||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||
|-|
|of the tender|
|offer, Sanonda|
|will continue|
|to maintain|
|complete|
|purchase,|
|production|
|and sales|
|system, and to|
|gain the|
|independent|
|intellectual|
|property. The|
|Company and|
|its direct or|
|indirect|
|controlling|
|shareholders|
|and Sanonda|
|of which the|
|personnel,|
|assets,|
|finance,|
|business and|
|institutions|
|will be|
|completely|
|separated, and|
|at the same|
|time maintain|
|the operation|
|ability of|
|Sanonda that|
|independently|
|face to the|
|China|
|agrochemical|
|industry|
|market. 2. The|
|Company will|
|avoid and|
|reduce the|
|related|
|transactions|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||
|-|
|with Sanonda|
|according to|
|the|
|requirements|
|stipulated by|
|the laws,|
|regulations|
|and other|
|normative|
|documents;|
|but for those|
|related|
|transactions|
|that are|
|inevitable or|
|occur with|
|reasonable|
|cause, will|
|have to obey|
|the just, fair|
|and open|
|market|
|principles.|
|And to sign|
|the agreement|
|according to|
|the law and to|
|carry out legal|
|program, and|
|to make sure|
|not to harm|
|the legal|
|interest of|
|Sanonda and|
|other|
|shareholders|
|by related|
|transaction|
|according to|
|the Articles of|
|Association of|
|Sanonda, the|
|relevant|
|system about|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||||related||||
||||transaction||||
||||and to conduct||||
||||the duty of||||
||||information||||
||||disclosure as||||
||||well as the||||
||||approval||||
||||process which||||
||||stipulated by||||
||||the relevant||||
||||regulations.||||
|Commitments made in time of asset|||||||
|restructuring|||||||
|Commitments made in time of IPO or|||||||
|refinancing|||||||
|Commitments concerning stock|||||||
|ownership incentive|||||||
||||“1. The||||
||||Supervisory|||Owning to the|
||||Board|||suspension of|
||||Chairman of|||the|
||||the Company|||Company’s|
||||Mr. Jiang|||shares from 5|
||||Chenggang|||Aug. 2015 to|
||||planed to|||the disclosure|
||||purchase the|||date, Mr. Li|
||||shares of the|||Zhongxi|
||||Company of|||could not|
|||Commitments|||||
||Jiang||over 5000|||execute the|
|Other commitments made to minority||on the|||||
||Chenggang;||shares through|13 Jul. 2015|2016-01-12|commitments|
|shareholders||increase of the|||||
||Li Zhongxi||the secondary|||on increasing|
|||shareholding|||||
||||market by the|||the|
||||self-rising|||shareholding.|
||||funds in the|||While Mr.|
||||future 6|||Jiang|
||||months|||Chenggang|
||||(2015.7.13-20|||had|
||||16.1.12); 2.|||completed the|
||||The Board|||execution of|
||||Secretary Mr.|||the|
||||Li Zhongxi|||commitments.|
||||planed to||||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|||purchase the|
|||shares of the|
|||Company of|
|||over 5000|
|||shares through|
|||the secondary|
|||market by the|
|||self-rising|
|||funds in the|
|||future 6|
|||months|
|||(2015.7.13-20|
|||16.1.12)”.|
|Executed on time|Yes||
|Specific reasons for failing to fulfill|||
|commitments on time and plans for|N/A||
|next step|||

IV Operating result forecast for January-June 2016
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-beginning to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□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
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
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|Index to main inquiry information|
||||When is the Company stock resumption?|
||||Information provided: Progress|
|2016-03-25|Telephone communication|Individual||
||||Announcement of Significant Asset|
||||Restructuring|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
|||||
|-|-|-|-|
||||When is the Company stock resumption|
||||and what the progress is? Information|
|2016-03-28|Telephone communication|Individual||
||||provided: progress Announcement of|
||||Significant Asset Restructuring|

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.
The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd. Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Hubei Sanonda Co., Ltd.
31 March 2016
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|432,266,661.23|406,098,208.72|
|Settlement reserves|||
|Lendings to banks and other financial|||
|institutions|||
|Financial assets measured at fair|||
|value with fair value changes included|||
|in the profit and loss for the Reporting|||
|Period|||
|Derivative financial assets|||
|Notes receivable|41,636,187.93|34,433,010.97|
|Accounts receivable|305,772,768.14|180,450,531.93|
|Accounts paid in advance|27,736,530.05|20,413,365.68|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract|||
|reserves|||
|Interest receivable|||
|Dividends receivable|||
|Other accounts receivable|13,212,854.69|9,847,451.35|
|Financial assets purchased under|||
|agreement to resell|||
|Inventories|241,972,577.69|287,824,164.30|
|Assets held for sale|||
|Non-current assets due within one|||
|year|||
|Other current assets|13,569,615.59|14,685,220.14|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Total current assets|1,076,167,195.32|953,751,953.09|
|Non-current assets:|||
|Loans and advances to customers|||
|Available-for-sale financial assets|9,153,782.63|9,153,782.63|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|||
|Investment property|4,958,190.60|5,036,745.54|
|Fixed assets|1,628,215,205.60|1,684,051,200.09|
|Construction in progress|156,798,918.42|143,683,545.15|
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|161,659,658.59|165,569,924.44|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|11,733,038.10|11,021,018.38|
|Other non-current assets|5,000,000.00|5,000,000.00|
|Total non-current assets|1,977,518,793.94|2,023,516,216.23|
|Total assets|3,053,685,989.26|2,977,268,169.32|
|Current liabilities:|||
|Short-term borrowings|0.00|20,000,000.00|
|Borrowings from the Central Bank|||
|Money deposits accepted and|||
|inter-bank deposits|||
|Loans from banks and other financial|||
|institutions|||
|Financial liabilities measured at fair|||
|value with fair value changes included|||
|in the profit and loss for the Reporting|||
|Period|||
|Derivative financial liabilities|||
|Notes payable|10,000,000.00|0.00|
|Accounts payable|161,841,002.63|134,357,481.77|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Accounts received in advance|13,005,672.98|26,666,138.22|
|Financial assets sold for repurchase|||
|Handling charges and commissions|||
|payable|||
|Payroll payable|13,360,572.64|30,308,341.73|
|Taxes and fares payable|21,881,158.28|26,858,466.27|
|Interest payable|374,976.67|1,123,849.31|
|Dividends payable|250,000.00|250,000.00|
|Other accounts payable|26,292,050.60|25,511,333.81|
|Reinsurance premiums payable|||
|Insurance contract reserves|||
|Payables for acting trading of|||
|securities|||
|Payables for acting underwriting of|||
|securities|||
|Liabilities held for sale|||
|Non-current liabilities due within one|||
||244,000,000.00|244,000,000.00|
|year|||
|Other current liabilities|||
|Total current liabilities|491,005,433.80|509,075,611.11|
|Non-current liabilities:|||
|Long-term borrowings|310,090,000.00|343,590,000.00|
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term accounts payable|0.00|650,000.00|
|Long-term payroll payable|||
|Special payables|||
|Estimated liabilities|||
|Deferred income|25,569,288.39|26,570,088.61|
|Deferred income tax liabilities|||
|Other non-current liabilities|120,000,000.00||
|Total non-current liabilities|455,659,288.39|370,810,088.61|
|Total liabilities|946,664,722.19|879,885,699.72|
|Owners’ equity:|||
|Share capital|593,923,220.00|593,923,220.00|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserves|263,063,461.97|263,063,461.97|
|Less: Treasury stock|||
|Other composite income|||
|Special reserves|24,470,850.81|22,848,859.15|
|Surplus reserves|190,699,248.11|190,699,248.11|
|Provisions for general risks|||
|Retained profit|1,034,864,486.18|1,026,847,680.37|
|Total equity attributable to owners of|||
||2,107,021,267.07|2,097,382,469.60|
|the Company|||
|Minority interests|||
|Total owners’ equity|2,107,021,267.07|2,097,382,469.60|
|Total liabilities and owners’ equity|3,053,685,989.26|2,977,268,169.32|

 Legal representative: An Liru Chief of the accounting work: Liu Anping Chief of the accounting organ: Tu Zhiwen 2. Balance sheet of the Company
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|355,468,919.19|378,450,204.94|
|Financial assets measured at fair|||
|value with fair value changes included|||
|in the profit and loss for the Reporting|||
|Period|||
|Derivative financial assets|||
|Notes receivable|40,296,187.93|32,331,010.97|
|Accounts receivable|524,912,419.87|352,274,073.40|
|Accounts paid in advance|23,330,047.30|19,218,775.50|
|Interest receivable|||
|Dividends receivable|||
|Other accounts receivable|700,322.48|1,535,805.55|
|Inventories|227,372,954.34|275,057,647.64|
|Assets held for sale|||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Non-current assets due within one|||
|year|||
|Other current assets||387,633.86|
|Total current assets|1,172,080,851.11|1,059,255,151.86|
|Non-current assets:|||
|Available-for-sale financial assets|9,153,782.63|9,153,782.63|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|55,526,635.41|55,526,635.41|
|Investment property|4,958,190.60|5,036,745.54|
|Fixed assets|1,491,467,047.95|1,543,099,613.97|
|Construction in progress|151,723,082.07|139,297,997.97|
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|149,180,619.97|150,253,232.11|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|8,626,588.21|8,855,180.95|
|Other non-current assets|5,000,000.00|5,000,000.00|
|Total non-current assets|1,875,635,946.84|1,916,223,188.58|
|Total assets|3,047,716,797.95|2,975,478,340.44|
|Current liabilities:|||
|Short-term borrowings|0.00|20,000,000.00|
|Financial liabilities measured at fair|||
|value with fair value changes included|||
|in the profit and loss for the Reporting|||
|Period|||
|Derivative financial liabilities|||
|Notes payable|10,000,000.00|0.00|
|Accounts payable|154,698,998.37|129,017,385.70|
|Accounts received in advance|11,591,435.46|24,885,411.49|
|Payroll payable|11,370,572.64|28,311,263.93|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Taxes and fares payable|17,892,711.87|21,773,193.24|
|Interest payable|374,976.67|1,123,849.31|
|Dividends payable|250,000.00|250,000.00|
|Other accounts payable|24,922,683.01|23,536,806.94|
|Liabilities held for sale|||
|Non-current liabilities due within one|||
||244,000,000.00|244,000,000.00|
|year|||
|Other current liabilities|||
|Total current liabilities|475,101,378.02|492,897,910.61|
|Non-current liabilities:|||
|Long-term borrowings|310,090,000.00|343,590,000.00|
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term payables|0.00|650,000.00|
|Long-term payroll payables|||
|Special payables|||
|Estimated liabilities|||
|Deferred income|18,931,788.37|19,686,755.26|
|Deferred income tax liabilities|||
|Other non-current liabilities|120,000,000.00||
|Total non-current liabilities|449,021,788.37|363,926,755.26|
|Total liabilities|924,123,166.39|856,824,665.87|
|Owners’ equity:|||
|Share capital|593,923,220.00|593,923,220.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserves|263,799,837.18|263,799,837.18|
|Less: Treasury stock|||
|Other composite income|||
|Special reserves|19,501,738.50|17,879,746.84|
|Surplus reserves|190,699,248.11|190,699,248.11|
|Retained profit|1,055,669,587.77|1,052,351,622.44|
|Total owners’ equity|2,123,593,631.56|2,118,653,674.57|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Total liabilities and owners’ equity|3,047,716,797.95|2,975,478,340.44|

 3. Consolidated income statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating revenues|478,019,086.56|554,976,943.28|
|Including: Sales income|478,019,086.56|554,976,943.28|
|Interest income|||
|Premium income|||
|Handling charge and commission|||
|income|||
|2. Total operating costs|480,377,985.57|452,366,030.87|
|Including: Cost of sales|407,955,838.07|391,635,889.19|
|Interest expenses|||
|Handling charge and commission|||
|expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance|||
|contract reserves|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Business tax and surtaxes|3,827,800.30|5,228,195.69|
|Selling expenses|18,898,154.60|11,112,517.44|
|Administrative expenses|32,610,160.74|25,068,621.87|
|Financial costs|7,992,233.70|4,161,492.69|
|Asset impairment loss|9,093,798.16|15,159,313.99|
|Add: Profit/loss on fair value changes|||
|(“-” means loss)|||
|Profit/loss on investment (“-” means|||
|loss)|||
|Including: Share of profit in|||
|associates and joint ventures|||
|Foreign exchange profit (“-” means|||
|loss)|||
|3. Operating profit (“-” means loss)|-2,358,899.01|102,610,912.41|
|Add: Non-operating income|12,152,099.96|1,178,232.22|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Including: Profit on disposal of|||
|non-current assets|||
|Less: Non-operating expense|||
|Including: Loss on disposal of|||
|non-current assets|||
|4. Total profit (“-” means loss)|9,793,200.95|103,789,144.63|
|Less: Corporate income tax|1,776,395.14|26,761,690.14|
|5. Net profit (“-” means loss)|8,016,805.81|77,027,454.49|
|Net profit attributable to owners of|||
||8,016,805.81|77,028,787.65|
|the Company|||
|Minority shareholders’ income||-1,333.16|
|6. After-tax net amount of other|||
|composite income|||
|After-tax net amount of other|||
|composite income attributable to owners|||
|of the Company|||
|6.1 Other composite income that|||
|will not be reclassified into profit and|||
|loss|||
|6.1.1 Changes in net liabilities|||
|or assets with a defined benefit plan upon|||
|re-measurement|||
|6.1.2 Enjoyable share in other|||
|comprehensive income in investees that|||
|cannot be reclassified into profit and loss|||
|under the equity method|||
|6.2 Other composite income that|||
|will be reclassified into profit and loss|||
|6.2.1 Enjoyable share in other|||
|composite income in investees that will|||
|be reclassified into profit and loss under|||
|the equity method|||
|6.2.2 Profit and loss on fair|||
|value changes of available-for-sale|||
|financial assets|||
|6.2.3 Profit and loss on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||
|financial assets|||
|6.2.4 Effective hedging profit|||
|and loss on cash flow|||
|6.2.5 Foreign-currency|||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||||
|-|-|-|-|-|
|financial statement translation difference|||||
|6.2.6 Other|||||
|After-tax net amount of othe|r||||
|composite income attributable to|||||
|minority shareholders|||||
|7. Total composite income|8,016,805.81||77,027,454.49||
|Attributable to owners of th|e8,016,805.81||||
||||77,028,787.65||
|Company|||||
|Attributable to minority|||||
||||-1,333.16||
|shareholders|||||
|8. Earnings per share|||||
|8.1 Basic earnings per share|0.0135||0.1297||
|8.2 Diluted earnings per share|0.0135||0.1297||
|8.2 Diluted earnings per share||0.50||0.38|

 Where business mergers under the same control occurred in the Reporting Period, net profit achieved by the merged parties before the business mergers was RMB0.00, with the corresponding amount for the same period of last year being RMB0.00.
Legal representative: An Liru Chief of the accounting work: Liu Anping Chief of the accounting organ: Tu Zhiwen 4. Income statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating revenues|485,727,795.98|573,870,268.42|
|Less: Operating costs|418,136,181.91|415,508,320.16|
|Business tax and surtaxes|3,803,996.78|5,194,402.87|
|Selling expenses|16,872,467.34|10,915,714.58|
|Administrative expenses|31,004,921.58|23,147,903.38|
|Financial costs|7,625,098.99|4,533,279.01|
|Asset impairment loss|4,759,941.43|11,357,800.90|
|Add: profit/loss on fair value changes(“-” means loss)|||
|Profit/loss on investment (“-”means loss)|||
|Including: Income form|||
|investment on associates and joint|||
|ventures|||
|2. Operating profit (“-” means loss)|3,525,187.95|103,212,847.52|
|Add: Non-operating income|1,509,784.98|932,398.89|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Including: Profit on disposal of|||
|non-current assets|||
|Less: Non-operating expense|||
|Including: Loss on disposal of|||
|non-current assets|||
|3. Total profit (“-” means loss)|5,034,972.93|104,145,246.41|
|Less: Corporate income tax|1,717,007.60|26,772,629.00|
|4. Net profit (“-” means loss)|3,317,965.33|77,372,617.41|
|5. After-tax net amount of other|||
|composite income|||
|5.1 Other composite 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 Enjoyable share in other|||
|composite income in investees that|||
|cannot be reclassified into profit and|||
|loss under the equity method|||
|5.2 Other composite income that will|||
|be reclassified into profit and loss|||
|5.2.1 Enjoyable share in other|||
|composite income in investees that will|||
|be reclassified into profit and loss under|||
|the equity method|||
|5.2.2 Profit and loss on fair value|||
|changes of available-for-sale financial|||
|assets|||
|5.2.3 Profit and loss on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||
|financial assets|||
|5.2.4 Effective hedging profit and|||
|loss on cash flow|||
|5.2.5 Foreign-currency financial|||
|statement translation difference|||
|5.2.6 Other|||
|6. Total composite income|3,317,965.33|77,372,617.41|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.0056|0.1303|
|7.2 Diluted earnings per share|0.0056|0.1303|

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd. 5. Consolidated cash flow statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating cash flow:|||
|Cash received from sale of|||
||253,177,379.60|378,778,289.27|
|commodities and rendering of service|||
|Net increase in money deposits from|||
|customers and inter-bank 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 measured at fair value with fair|||
|value changes included in the profit|||
|and loss for the Reporting Period|||
|Cash received from interest,|||
|handling charges and commissions|||
|Net increase in loans from banks and|||
|other financial institutions|||
|Net increase in funds in repurchase|||
|business|||
|Tax refunds received|9,056,211.09|21,937,488.19|
|Other operating cash received|4,769,459.30|3,162,799.92|
|Subtotal of operating cash inflow|267,003,049.99|403,878,577.38|
|Cash paid for goods and services|177,887,983.97|330,326,017.92|
|Net increase in loans and advances|||
|to customers|||
|Net increase in funds deposited in|||
|the Central Bank and inter-bank|||
|placements|||
|Cash for paying claims of original|||
|insurance contracts|||
|Cash for paying interest, handling|||
|charges and commissions|||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Cash for paying policy dividends|||
|Cash paid to and for employees|58,831,581.22|59,830,987.51|
|Taxes and fares paid|24,075,079.68|19,285,902.49|
|Other cash payment relating to|||
||20,946,190.12|17,913,422.88|
|operating activities|||
|Subtotal of operating cash outflow|281,740,834.99|427,356,330.80|
|Net operating cash flow|-14,737,785.00|-23,477,753.42|
|2. Investment cash flow:|||
|Cash received from retraction of|||
|investments|||
|Cash received from return on|||
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|4,006,000.00||
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investment activities|||
|Subtotal of investment cash inflow|4,006,000.00||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|21,547,554.62|83,666,458.46|
|assets|||
|Cash paid for investment|||
|Net increase in pledged loans|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|investment activities|||
|Subtotal of investment cash outflow|21,547,554.62|83,666,458.46|
|Net investment cash flow|-17,541,554.62|-83,666,458.46|
|3. Financing cash flow:|||
|Cash received from capital|||
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|Cash received as borrowings||123,000,000.00|
|Cash received from issuance of|||
|bonds|||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Other financing cash received|120,000,000.00||
|Subtotal of financing cash inflow|120,000,000.00|123,000,000.00|
|Repayment of borrowings|53,500,000.00|50,000,000.00|
|Cash paid for interest expenses and|||
||7,785,627.02|7,609,574.40|
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
|by subsidiaries to minority|||
|shareholders|||
|Other cash payments relating to|||
||3,000,000.00|1,500,000.00|
|financing activities|||
|Sub-total of financing cash outflow|64,285,627.02|59,109,574.40|
|Net financing cash flow|55,714,372.98|63,890,425.60|
|4. Effect of foreign exchange rate|||
||-266,580.85|137,278.60|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||23,168,452.51|-43,116,507.68|
|equivalents|||
|Add: Opening balance of cash and|||
||406,098,208.72|418,847,736.46|
|cash equivalents|||
|6. Closing balance of cash and cash|||
||429,266,661.23|375,731,228.78|
|equivalents|||

6. Cash flow statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating cash flow:|||
|Cash received from sale of|||
||203,352,397.42|382,470,171.90|
|commodities and rendering of service|||
|Tax refunds received|168,260.60|16,386,842.52|
|Other operating cash received|5,958,928.42|3,074,184.00|
|Subtotal of operating cash inflow|209,479,586.44|401,931,198.42|
|Cash paid for goods and services|174,517,489.32|299,867,268.44|
|Cash paid to and for employees|57,326,632.82|53,880,451.96|
|Taxes and fares paid|20,658,112.94|16,020,611.96|
|Other operating cash payments|18,041,796.70|15,426,760.05|
|Subtotal of operating cash outflow|270,544,031.78|385,195,092.41|
|Net operating cash flow|-61,064,445.34|16,736,106.01|
|2. Investment cash flow:|||
|Cash received from retraction of|||
|investments|||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|Cash received from return on|||
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|206,000.00||
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investment activities|||
|Subtotal of investment cash inflow|206,000.00||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|20,834,931.62|83,666,458.46|
|assets|||
|Cash paid for investment|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other investment cash payments|||
|Subtotal of investment cash outflow|20,834,931.62|83,666,458.46|
|Net investment cash flow|-20,628,931.62|-83,666,458.46|
|3. Financing cash flow:|||
|Cash received from capital|||
|contributions|||
|Cash received as borrowings||123,000,000.00|
|Cash received from issuance of|||
|bonds|||
|Other financing cash received|120,000,000.00||
|Subtotal of financing cash inflow|120,000,000.00|123,000,000.00|
|Repayment of borrowings|53,500,000.00|50,000,000.00|
|Cash paid for interest expenses and|||
||7,785,627.02|7,609,574.40|
|distribution of dividends or profit|||
|Other cash payments relating to|||
||3,000,000.00|1,500,000.00|
|financing activities|||
|Sub-total of financing cash outflow|64,285,627.02|59,109,574.40|
|Net financing cash flow|55,714,372.98|63,890,425.60|
|4. Effect of foreign exchange rate|||
||-2,281.77|12,352.98|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||-25,981,285.75|-3,027,573.87|
|equivalents|||
|Add: Opening balance of cash and|||
||378,450,204.94|344,750,284.42|
|cash equivalents|||

The Report for the First Quarter of2016—Hubei Sanonda Co., Ltd.
||||
|-|-|-|
|6. Closing balance of cash and cash|||
||352,468,919.19|341,722,710.55|
|equivalents|||

IIAuditor’s report
Is this Report audited?
□ Yes√ No
This Report is not audited.
Hubei Sanonda Co., Ltd. 25 April 2016