Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report Nanjing Putian Telecommunications Co., Ltd.
2018 Third Quarterly Report
October 2018
Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report 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.
Li Linzhen, person in charge of the Company, head of the accounting works Cao Xurong and Gao Wen, 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. 2018 Third Quarterly Report Section II. Basic information of Company
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
√ Yes□ No
Reasons of retroactive adjustment or re-statement
Accounting errors correction
||||||
|-|-|-|-|-|
|||Period-end of last year||Increase/decrease|
||Current period-end||||
|||Before the adjustment|After the adjustment|After the adjustment|
|Total assets (RMB)|1,990,465,215.00|2,116,312,318.51|2,114,332,229.50|-5.86%|
|Net assets attributable to|331,883,784.26||350,248,482.53||
|shareholders of listed company||352,228,571.54||-5.24%|
|(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)|445,518,808.43|-14.50%|1,412,369,413.38|-7.90%|
|Net profit attributable to|-7,943,829.27||-18,365,534.87||
|shareholders of the listed company||-163.15%||-2,648.81%|
|(RMB)|||||
|Net profit attributable to|||||
|shareholders of the listed company|||||
||-35,974,784.31|-439.16%|-46,396,489.91|-1,161.91%|
|after deducting non-recurring gains|||||
|and losses (RMB)|||||
|Net cash flow arising from|||-251,675,588.51||
||--|--||-28.05%|
|operating activities (RMB)|||||
|Basic earnings per share|-0.037||-0.085||
|||-162.71%||-2,733.33%|
|(RMB/Share)|||||
|Diluted earnings per share|-0.037||-0.085||
|||-162.71%||-2,733.33%|
|(RMB/Share)|||||
|Weighted average ROE|-2.37%|-6.15%|-5.38%|-5.19%|

 Reasons of accounting policy change and accounting error correction
Note: being deliberated and approved by 10th session of 7th BOD held on 13 July 2018, the Annual Report 2017 and Financial Report
of 3Q for 2017 have been corrected in accounting error (found more in the Notice of Correction for Earlier Accounting Errors
released on 14 July 2018)
Items and amount of extraordinary profit (gains)/losses
Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report√Applicable □Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||end of the Period||
|Gains/losses from the disposal of non-current asset (including the|||
||28,399,924.88||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|||
|including the subsidy enjoyed in quota or ration according to|||
||5,900,010.07||
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Gains/losses of debt restructuring|225,371.60||
|Other non-operating income and expenditure except for the|||
||-192,891.95||
|aforementioned items|||
|Less: impact on income tax|221,737.32||
|Impact on minority shareholders’ equity (post-tax)|6,079,722.24||
|Total|28,030,955.04|--|

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. Number of common shareholders and preference shareholders with voting rights recovered and top ten common shareholders
In Share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Total preference shareholders|||||
|Total number of common||||with voting rights recovered at|||||
|||8,661|||||0||
|shareholders at the end of report|||||||||
|||||end of reporting period (if|||||
|period|||||||||
|||||applicable)|||||
|Top ten shareholders|||||||||
||||||Amount of|Number of share pledged/frozen|||
||Nature of|Proportion of|Amount of shares||||||
|Shareholders|||||non-tradable||||
||shareholder|shares held|held|||State of share||Amount|
||||||shares held||||
|China Potevio|State-owned|53.49%|115,000,000||115,000,000||||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||||||
|-|-|-|-|-|-|-|
|CompanyLimited|corporate||||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Overseascorporate|3.31%|7,114,027|0|||
|ShenwanHongyuanSecurities (HongKong) co., LTD|Overseascorporate|2.41%|5,186,500|0|||
|Zheng Enyue|Domestic natureperson|1.12%|2,405,739|0|||
|Sun Huiming|Domestic natureperson|0.93%|2,007,110|0|||
|Guosen Securities(HK) BrokerageCompanyLimited|Overseascorporate|0.87%|1,861,882|0|||
|Gu Jinhua|Domestic natureperson|0.83%|1,783,771|0|||
|BOCISECURITIESLIMITED|Overseascorporate|0.80%|1,716,945|0|||
|Wang Xiaoyan|Domestic natureperson|0.60%|1,296,887|0|||
|LI SHERYNZHAN MING|Overseas natureperson|0.53%|1,145,100|0|||
|Particular about top ten shareholders with tradable shares held|||||||
||||||Type of shares||
|Shareholders||Amount of tradable shares held|||||
||||||Type|Amount|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED||7,114,027|||Domestically||
||||||listed foreign|7,114,027|
||||||shares||
|Shenwan Hongyuan Securities(Hong Kong) co., LTD||5,186,500|||Domestically||
||||||listed foreign|5,186,500|
||||||shares||
|Zheng Enyue||2,405,739|||Domestically||
||||||listed foreign|2,405,739|
||||||shares||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
|||||
|-|-|-|-|
|Sun Huiming|2,007,110|Domestically||
|||listed foreign|2,007,110|
|||shares||
|Guosen Securities (HK) BrokerageCompany Limited|1,861,882|Domestically||
|||listed foreign|1,861,882|
|||shares||
|Gu Jinhua|1,783,771|Domestically||
|||listed foreign|1,783,771|
|||shares||
|BOCI SECURITIES LIMITED|1,716,945|Domestically||
|||listed foreign|1,716,945|
|||shares||
|Wang Xiaoyan|1,296,887|Domestically||
|||listed foreign|1,296,887|
|||shares||
|LI SHERYN ZHAN MING|1,145,100|Domestically||
|||listed foreign|1,145,100|
|||shares||
|Jin Yunhua|950,162|Domestically||
|||listed foreign|950,162|
|||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 (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
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in reporting period
2. Total of shareholders with preferred stock held and the top ten shareholdings
□Applicable √Not applicable
Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report 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
|||||||
|-|-|-|-|-|-|
|Items|2018-9-30 (RMB)|2017-12-31 (RMB)|Changed amount (RMB)|+,- (%)|Main reasons for major changes|
|Monetary fund|153,091,055.74|327,477,701.36|-174,386,645.62|-53.25%|Sale capital return declined in theperiod|
|Account paid inadvance|267,127,123.43|53,821,937.79|213,305,185.64|396.32%|Paying the goods with note in theperiod|
|Other receivables|39,077,565.92|29,325,423.73|9,752,142.19|33.25%|Receivable suspense debitsincreased|
|Stock|259,822,219.91|489,898,057.36|-230,075,837.45|-46.96%|Parts of the strock send outgoods in the period with salesresulted|
|Other currentassets|7,387,134.97|45,282,892.44|-37,895,757.47|-83.69%|Products are sale in the period,taxes deductible|
|Construction inprogress|7,145,662.62|2,163,267.89|4,982,394.73|230.32%|Factory construction andre-construction in the period|
|Taxes Payable|9,538,970.12|18,883,017.18|-9,344,047.06|-49.48%|Taxes for the year declined|
|Deferred income|3,996,315.00|8,664,102.90|-4,667,787.90|-53.88%|Part of the government subsidyused for distribute resettlementpersonnel are used in the period,which has originally reconed intodeferred income|
|Undistributedprofit|-64,951,526.51|-46,585,991.64|-18,365,534.87|-39.42%|Net profit of the Company loss(18.37) million Yuan in theperiod|
|Items|From Jan. toSept. of 2018|From Jan. toSept. of 2017|Changed amount (RMB)|+,- (%)|Main reasons for major changes|
|Other income|7,303,121.76|4,414,191.87|2,888,929.89|65.45%|The government subsidy withdarily operation activityconcerned recognized in theperiod increased from a yearearlier|
|Investment income|333,659.41|-849,185.37|1,182,844.78|139.29%|Profit from share-participatedenterprise increased on a y-o-ybasis|

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
|||||||
|-|-|-|-|-|-|
|Assets disposalincome|28,492,927.93|0.00|28,492,927.93|-|Received expropriationcompensation for part of thehouse of the Company andsubsidiary Bada Communicationare levied by the government inthe period|
|Operating profit|-8,592,622.57|14,676,548.93|-23,269,171.50|-158.55%|1. Affected by centralizedpurchasing of operators, theindustry comes more and morefierce, revenue from productsales are declined, the grossprofit decreased as well;meanwhile, part of theoperational entities haveinfluence on operation forbusiness site removal andrelocation; 2. in reportingperiod, periodic expenses goesup from a year earlier mainlybecause the Company in strandedcondition and reducing the body,internal industrial structure areadjustment and more investmenton R&D|
|Total profit|-4,969,717.67|18,268,473.68|-23,238,191.35|-127.20%||
|Net profit|-6,802,722.33|12,066,927.76|-18,869,650.09|-156.37%||
|Net profitattributable toowners’ of parentcompany|-18,365,534.87|-668,127.00|-17,697,407.87|-2648.81%||
|Income taxexpense|1,833,004.66|6,201,545.92|-4,368,541.26|-70.44%|Profit from subsidiary hasdeclined on a y-o-y basis in theperiod|
|Subtotal cashinflow frominvestmentactivities|35,621,425.52|444,774.40|35,176,651.12|7908.87%|Received expropriationcompensation by the Companyand subsidiary BadaCommunication in the period|
|Net cash flowarising frominvestmentactivities|24,138,218.08|-8,474,958.17|32,613,176.25|384.82%|Net cash flow from investmentactivity increased from a yearearlier for received expropriationcompensation by the Companyand subsidiary BadaCommunication in the period|
|Net cash flowarising fromfinancing activities|-2,745,163.86|-113,109,354.78|110,364,190.92|97.57%|Bank loans in the periodincreased on a y-o-y basis|

II. Progress and influence of the main events as well as solution analysis specification
√Applicable□ Not applicable
Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report Approved by Shenzhen Stock Exchange, the Company return to the market since 15 August 2018, short name of the stock turns to “NJ TEL B” from ST NT B. More details see the reports.
||||
|-|-|-|
|||Information index for temporary report|
|Overview|Date for disclosure||
|||disclosure|
|Stock Resumption Listing Approved byShenzhen Stock Exchange|||
||2018-08-01|Juchao Website (www.cninfo.com.cn)|
|Announcement of Resumption of Listing|2018-08-07|Juchao Website (www.cninfo.com.cn)|

 III. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable√ Not applicable
There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period.
IV. Estimation of operation performance for year of 2018
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.
VI. Trust financing
□ Applicable√ Not applicable
The Company had no trust financing in Period.
VII. Particulars about derivatives investment
□ Applicable√ Not applicable
The Company had no derivatives investment in Period.
VIII. Registration form for receiving research, communication and interview in the report period
□ Applicable√ Not applicable
No registration form for receiving research, communication or interview in the Period.
Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report IX. Guarantee outside against the regulation
□Applicable√Not applicable
The Company had no guarantee outside against the regulation in the reporting period.
X. Non-operational fund occupation from controlling shareholders and its related party□ Applicable√ Not applicable
The Company had no non-operational fund occupation form controlling shareholders and its related party in the period.
Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report Section IV. Financial Statement
I. Financial statement
1. Consolidated Balance Sheet
Prepared by Nanjing Putian Telecommunications Co., Ltd.
2018-09-30
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|153,091,055.74|327,477,701.36|
|Settlement provisions|||
|Capital lent|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial assets|||
|Notes receivable and accounts|||
||913,874,954.44|812,567,071.00|
|receivable|||
||22,211,707.27|32,477,463.59|
|Including: Notes receivable|||
||891,663,247.17|780,089,607.41|
|Accounts receivable|||
|Accounts paid in advance|267,127,123.43|53,821,937.79|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Other receivables|39,077,565.92|29,325,423.73|
|Purchase restituted finance asset|||
|Inventories|259,822,219.91|489,898,057.36|
|Assets held for sale|||
|Non-current asset due within one year|||
|Other current assets|7,387,134.97|45,282,892.44|
|Total current assets|1,640,380,054.41|1,758,373,083.68|
|Non-current assets:|||
|Loans and payments on behalf|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Finance asset available for sales|741,953.00|741,953.00|
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|187,113,598.44|186,977,506.23|
|Investment property|12,304,182.60|12,802,485.28|
|Fixed assets|109,715,522.72|119,741,921.78|
|Construction in progress|7,145,662.62|2,163,267.89|
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|30,160,965.49|30,736,816.88|
|Expense on Research and|||
|Development|||
|Goodwill|||
|Long-term expenses to be apportioned|2,903,275.72|2,795,194.76|
|Deferred income tax asset|||
|Other non-current asset|||
|Total non-current asset|350,085,160.59|355,959,145.82|
|Total assets|1,990,465,215.00|2,114,332,229.50|
|Current liabilities:|||
|Short-term loans|408,510,000.00|387,550,000.00|
|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|||
|Derivative financial liability|||
|Notes payable and accounts payable|799,677,377.33|826,833,861.31|
|Accounts received in advance|238,048,193.47|317,197,824.66|
|Selling financial asset of repurchase|||
|Commission charge and commission|||
|payable|||
|Wage payable|20,456,511.60|21,033,311.73|
|Taxes payable|9,538,970.12|18,883,017.18|
|Other accounts payable|51,920,631.17|63,027,802.63|
|Reinsurance payables|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|1,528,151,683.69|1,634,525,817.51|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Projected liabilities|||
|Deferred income|3,996,315.00|8,664,102.90|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|3,996,315.00|8,664,102.90|
|Total liabilities|1,532,147,998.69|1,643,189,920.41|
|Owner’s equity:|||
|Share capital|215,000,000.00|215,000,000.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Capital public reserve|185,374,533.85|185,374,533.85|
|Less: Inventory shares|||
|Other comprehensive income|-4,128,782.85|-4,129,619.45|
|Reasonable reserve|||
|Surplus public reserve|589,559.77|589,559.77|
|Provision of general risk|||
|Retained profit|-64,951,526.51|-46,585,991.64|
|Total owner’s equity attributable to parent|331,883,784.26|350,248,482.53|
|company|||
|Minority interests|126,433,432.05|120,893,826.56|

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Total owner’s equity|458,317,216.31|471,142,309.09|
|Total liabilities and owner’s equity|1,990,465,215.00|2,114,332,229.50|

 Legal representative: Li Linzhen
Person in charger of accounting works: Cao Xurong
Person in charge of accounting organ: Gao Wen
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current assets:|||
||87,333,751.00|124,709,891.97|
|Monetary funds|||
|Financial assets measured by fair value|||
|and with variation reckoned into current|||
|gains/losses|||
|Derivative financial assets|||
|Notes receivable and accounts|||
||481,676,828.23|434,748,479.96|
|receivable|||
||6,889,901.65|9,184,642.99|
|Including: Notes receivable|||
|Accounts receivable|474,786,926.58|425,563,836.97|
|Account paid in advance|219,482,783.84|22,368,455.10|
|Other receivables|27,585,199.25|41,195,020.22|
|Inventories|102,554,068.76|349,450,010.57|
|Assets held for sale|||
|Non-current assets maturing within one|||
|year|||
|Other current assets|0.00|38,624,058.06|
|Total current assets|918,632,631.08|1,011,095,915.88|
|Non-current assets:|||
|Available-for-sale financial assets|741,953.00|741,953.00|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|355,950,247.64|355,814,155.43|
|Investment property|||
|Fixed assets|51,111,967.96|56,349,626.12|

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Construction in progress|4,196,787.88|1,830,131.25|
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|12,508,008.92|12,676,942.23|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|2,757,317.72|2,580,098.76|
|Deferred income tax assets|||
|Other non-current assets|||
|Total non-current assets|427,266,283.12|429,992,906.79|
|Total assets|1,345,898,914.20|1,441,088,822.67|
|Current liabilities:|||
|Short-term borrowings|302,000,000.00|309,000,000.00|
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable and accounts payable|397,944,386.11|406,799,442.90|
|Accounts received in advance|220,599,079.05|290,793,176.69|
|Wage payable|8,883,960.41|7,816,724.35|
|Taxes payable|3,878,491.92|4,595,540.32|
|Other accounts payable|234,581,546.96|214,064,398.45|
|Liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|1,167,887,464.45|1,233,069,282.71|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Projected liabilities|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Deferred income||1,770,926.90|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|0.00|1,770,926.90|
|Total liabilities|1,167,887,464.45|1,234,840,209.61|
|Owners’ equity:|||
|Share capita|215,000,000.00|215,000,000.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Capital public reserve|172,417,299.81|172,417,299.81|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus reserve|589,559.76|589,559.76|
|Retained profit|-209,995,409.82|-181,758,246.51|
|Total owner’s equity|178,011,449.75|206,248,613.06|
|Total liabilities and owner’s equity|1,345,898,914.20|1,441,088,822.67|

 3. Consolidated Profit Statement (the period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|445,518,808.43|521,084,332.49|
|Including: Operating income|445,518,808.43|521,084,332.49|
|Interest income|||
|Insurance gained|||
|Commission charge and|||
|commission income|||
|II. Total operating cost|450,354,684.93|500,583,785.26|
|Including: Operating cost|365,244,189.15|426,752,215.51|
|Interest expense|||
|Commission charge and|||
|commission expense|||
|Cash surrender value|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|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|1,932,774.55|3,169,545.11|
|Sales expenses|37,646,375.59|33,270,810.11|
|Administration expenses|20,948,595.48|20,053,064.89|
|R&D expenses|18,962,492.62|14,316,877.83|
|Financial expenses|6,276,481.43|4,509,405.60|
|Including: Interest expenses|6,654,462.22|4,838,194.19|
|Interest income|405,484.76|357,150.68|
|Losses of devaluation of asset|-656,223.89|-1,488,133.79|
|Add: other income|1,503,777.90|1,629,382.27|
|Investment income (Loss is listed|||
||-74,133.69|-231,092.32|
|with “-”)|||
|Including: Investment income on|||
||-74,133.69|-231,092.32|
|affiliated company and joint venture|||
|Changing income of fair|||
|value(Loss is listed with “-”)|||
|Exchange income (Loss is listed|||
|with “-”)|||
|Income from assets disposal (Loss|||
||-1,663,890.87|663,364.82|
|is listed with “-”)|||
|III. Operating profit (Loss is listed|||
||-5,070,123.16|22,562,202.00|
|with “-”)|||
|Add: Non-operating income|1,149,732.72|1,691,897.74|
|Less: Non-operating expense|44,095.97|603,260.70|
|IV. Total Profit (Loss is listed with|||
||-3,964,486.41|23,650,839.04|
|“-”)|||
|Less: Income tax expense|186,886.96|2,998,134.08|
|V. Net profit (Net loss is listed with “-”)|-4,151,373.37|20,652,704.96|
|(i) net profit from continuous|||
||-4,151,373.37|20,652,704.96|
|operation (Net loss is listed with “-”)|||
|(ii) net profit from discontinued|||
|operation (Net loss is listed with “-”)|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Net profit attributable to owner’s of|||
||-7,943,829.27|12,578,596.63|
|parent company|||
|Minority shareholders’ gains and|||
||3,792,455.90|8,074,108.33|
|losses|||
|VI. Net after-tax of other|||
||136,536.55|164,503.71|
|comprehensive income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|122,975.85|148,053.34|
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|122,975.85|148,053.34|
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale|||
|financial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign|122,975.85|148,053.34|
|currency financial statements|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|13,560.70|16,450.37|
|shareholders|||
|VII. Total comprehensive income|-4,014,836.82|20,817,208.67|
|Total comprehensive income|||
|attributable to owners of parent|-7,820,946.37|12,726,649.97|
|Company|||
|Total comprehensive income|||
||3,806,109.55|8,090,558.70|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|-0.037|0.059|
|(ii) Diluted earnings per share|-0.037|0.059|

 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party.
Legal representative: Li Linzhen
Person in charger of accounting works: Cao Xurong
Person in charge of accounting organ: Gao Wen
4. Profit Statement of Parent Company (the period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|212,300,710.49|147,699,663.42|
|Less: Operating cost|185,380,547.20|121,623,634.06|
|Operating tax and extras|1,218,648.39|1,585,716.39|
|Sales expenses|15,127,198.27|14,248,749.40|
|Administration expenses|9,686,875.92|8,362,787.43|
|R&D expenses|5,107,630.12|4,907,200.42|
|Financial expenses|5,692,165.34|4,794,328.50|
|Including: Interest expenses|5,799,507.17|4,891,808.22|
|Interest income|163,300.52|75,400.05|
|Losses of devaluation of asset||-1,126,896.29|
|Add: other income|||
|Investment income (Loss is|4,902,566.31|4,382,736.34|

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|listed with “-”)|||
|Including: Investment income|||
||-74,133.69|-193,963.66|
|on affiliated company and joint venture|||
|Changing income of fair|||
|value(Loss is listed with “-”)|||
|Income from assets disposal|||
||-1,594,623.47||
|(Loss is listed with “-”)|||
|II. Operating profit (Loss is listed|||
||-6,604,411.91|-2,313,120.15|
|with “-”)|||
|Add: Non-operating income|226,247.94|1,204,073.78|
|Less: Non-operating expense|4,298.87|-12,419.93|
|III. Total Profit (Loss is listed with|||
||-6,382,462.84|-1,096,626.44|
|“-”)|||
|Less: Income tax expense|||
|IV. Net profit (Net loss is listed with|||
||-6,382,462.84|-1,096,626.44|
|“-”)|||
|(i) net profit from|||
|continuous operation (Net loss is|-6,382,462.84|-1,096,626.44|
|listed with “-”)|||
|(ii) net profit from|||
|discontinued operation (Net loss|||
|is listed with “-”)|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale|||
|financial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign|||
|currency financial statements|||
|6. Other|||
|VI. Total comprehensive income|-6,382,462.84|-1,096,626.44|
|VII. Earnings per share:|||
|(i) Basic earnings per share|-0.030|-0.005|
|(ii) Diluted earnings per share|-0.030|-0.005|

 5. Consolidated Profit Statement (form the year-begin to the period-end)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|1,412,369,413.38|1,533,480,739.88|
|Including: Operating income|1,412,369,413.38|1,533,480,739.88|
|Interest income|||
|Insurance gained|||
|Commission charge and|||
|commission income|||
|II. Total operating cost|1,457,091,745.05|1,522,369,197.45|
|Including: Operating cost|1,189,602,884.47|1,281,348,705.69|
|Interest expense|||
|Commission charge and|||
|commission expense|||
|Cash surrender value|||
|Net amount of expense of|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Operating tax and extras|7,597,025.09|7,896,987.72|
|Sales expenses|117,342,559.23|112,601,920.25|
|Administration expenses|68,339,170.75|59,420,494.19|
|R&D expenses|55,360,599.42|47,909,614.25|
|Financial expenses|16,474,946.82|13,210,994.42|
|Including: Interest expenses|18,280,015.84|14,509,237.38|
|Interest income|2,097,501.83|1,592,558.78|
|Losses of devaluation of asset|2,374,559.27|-19,519.07|
|Add: other income|7,303,121.76|4,414,191.87|
|Investment income (Loss is listed|||
||333,659.41|-849,185.37|
|with “-”)|||
|Including: Investment income on|||
||333,659.41|-849,185.37|
|affiliated company and joint venture|||
|Changing income of fair|||
|value(Loss is listed with “-”)|||
|Exchange income (Loss is listed|||
|with “-”)|||
|Income from assets disposal|||
||28,492,927.93||
|(Loss is listed with “-”)|||
|III. Operating profit (Loss is listed|||
||-8,592,622.57|14,676,548.93|
|with “-”)|||
|Add: Non-operating income|3,975,586.87|4,431,708.67|
|Less: Non-operating expense|352,681.97|839,783.92|
|IV. Total Profit (Loss is listed with|||
||-4,969,717.67|18,268,473.68|
|“-”)|||
|Less: Income tax expense|1,833,004.66|6,201,545.92|
|V. Net profit (Net loss is listed with “-”)|-6,802,722.33|12,066,927.76|
|(i) net profit from|||
|continuous operation (Net loss is|-6,802,722.33|12,066,927.76|
|listed with “-”)|||
|(ii) net profit from|||
|discontinued operation (Net loss|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|is listed with “-”)|||
|Net profit attributable to owner’s of|||
||-18,365,534.87|-668,127.00|
|parent company|||
|Minority shareholders’ gains and|||
||11,562,812.54|12,735,054.76|
|losses|||
|VI. Net after-tax of other|||
||929.55||
|comprehensive income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|929.55||
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|929.55||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale|||
|financial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
||929.55||
|arising on translation of foreign|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|currency financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|||
|shareholders|||
|VII. Total comprehensive income|-6,801,792.78|12,066,927.76|
|Total comprehensive income|||
|attributable to owners of parent|-18,364,698.27|-668,127.00|
|Company|||
|Total comprehensive income|||
||11,562,905.49|12,735,054.76|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|-0.085|-0.003|
|(ii) Diluted earnings per share|-0.085|-0.003|

 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party.
6. Profit Statement of Parent Company (form the year-begin to the period-end)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|710,107,677.73|639,969,808.89|
|Less: Operating cost|646,396,562.59|561,719,455.31|
|Operating tax and extras|3,407,052.75|3,539,704.52|
|Sales expenses|48,750,963.33|47,403,034.52|
|Administration expenses|32,374,205.31|27,726,889.98|
|R&D expenses|15,267,815.70|14,829,530.94|
|Financial expenses|15,980,393.39|13,297,736.50|
|Including: Interest expenses|16,156,553.75|13,885,696.29|
|Interest income|304,706.64|736,768.76|
|Losses of devaluation of asset|1,674,589.82|439,251.19|
|Add: other income|876,429.06|44,991.45|
|Investment income (Loss is|||
||5,310,359.41|3,727,514.63|
|listed with “-”)|||
|Including: Investment income|||
||333,659.41|-849,185.37|
|on affiliated company and joint venture|||
|Changing income of fair|||
|value(Loss is listed with “-”)|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Income from assets disposal|||
||17,314,391.94||
|(Loss is listed with “-”)|||
|II. Operating profit (Loss is listed|||
||-30,242,724.75|-25,213,287.99|
|with “-”)|||
|Add: Non-operating income|2,220,793.77|1,964,184.13|
|Less: Non-operating expense|215,232.33|203,730.26|
|III. Total Profit (Loss is listed with|||
||-28,237,163.31|-23,452,834.12|
|“-”)|||
|Less: Income tax expense|||
|IV. Net profit (Net loss is listed with|||
||-28,237,163.31|-23,452,834.12|
|“-”)|||
|(i) net profit from|||
|continuous operation (Net loss is|-28,237,163.31|-23,452,834.12|
|listed with “-”)|||
|(ii) net profit from|||
|discontinued operation (Net loss|||
|is listed with “-”)|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale|||
|financial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign|||
|currency financial statements|||
|6. Other|||
|VI. Total comprehensive income|-28,237,163.31|-23,452,834.12|
|VII. Earnings per share:|||
|(i) Basic earnings per share|-0.131|-0.109|
|(ii) Diluted earnings per share|-0.131|-0.109|

 7. Consolidated Cash Flow Statement (form the year-begin to the period-end)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|1,286,615,100.29|1,711,680,651.61|
|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 amount from|||
|disposal financial assets that measured|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|by fair value and with variation|||
|reckoned into current gains/losses|||
|Cash received from interest,|||
|commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business|||
|capital|||
|Write-back of tax received|4,289,615.88|3,876,858.51|
|Other cash received concerning|||
||27,943,664.20|20,538,311.60|
|operating activities|||
|Subtotal of cash inflow arising from|||
||1,318,848,380.37|1,736,095,821.72|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|1,178,397,147.73|1,557,193,269.77|
|service|||
|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|185,026,140.83|181,816,718.96|
|Taxes paid|63,321,561.08|76,354,353.74|
|Other cash paid concerning|||
||143,779,119.24|117,269,179.90|
|operating activities|||
|Subtotal of cash outflow arising from|||
||1,570,523,968.88|1,932,633,522.37|
|operating activities|||
|Net cash flows arising from operating|||
||-251,675,588.51|-196,537,700.65|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
||197,567.20|444,774.40|
|income|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Net cash received from disposal of|||
|fixed, intangible and other long-term|35,423,858.32|0.00|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
||35,621,425.52|444,774.40|
|activities|||
|Cash paid for purchasing fixed,|||
||11,483,207.44|8,919,732.57|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||11,483,207.44|8,919,732.57|
|activities|||
|Net cash flows arising from investing|||
||24,138,218.08|-8,474,958.17|
|activities|||
|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|406,510,000.00|395,500,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||406,510,000.00|395,500,000.00|
|activities|||
|Cash paid for settling debts|385,550,000.00|488,500,000.00|
|Cash paid for dividend and profit|||
||23,705,163.86|20,109,354.78|
|distributing or interest paying|||
|Including: Dividend and profit of|5,623,300.00|6,473,300.00|

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from financing|||
||409,255,163.86|508,609,354.78|
|activities|||
|Net cash flows arising from financing|||
||-2,745,163.86|-113,109,354.78|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|-92,357.05|-23,235.89|
|exchange rate|||
|V. Net increase of cash and cash|||
||-230,374,891.34|-318,145,249.49|
|equivalents|||
|Add: Balance of cash and cash|||
||311,331,284.54|484,954,713.07|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||80,956,393.20|166,809,463.58|
|equivalents at the period -end|||

8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|474,185,803.43|756,604,939.02|
|services|||
|Write-back of tax received|226,972.07|2,342.16|
|Other cash received concerning|||
||115,782,784.40|126,090,356.94|
|operating activities|||
|Subtotal of cash inflow arising from|||
||590,195,559.90|882,697,638.12|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|509,750,001.16|775,674,194.42|
|service|||
|Cash paid to/for staff and workers|76,138,859.61|73,191,248.75|
|Taxes paid|17,207,064.21|25,433,681.00|
|Other cash paid concerning|||
||73,192,989.93|60,591,753.66|
|operating activities|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Subtotal of cash outflow arising from|||
||676,288,914.91|934,890,877.83|
|operating activities|||
|Net cash flows arising from operating|||
||-86,093,355.01|-52,193,239.71|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
||197,567.20|39,244,774.40|
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|21,892,918.00|0.00|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
||22,090,485.20|39,244,774.40|
|activities|||
|Cash paid for purchasing fixed,|||
||7,474,536.72|6,510,594.72|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||7,474,536.72|6,510,594.72|
|activities|||
|Net cash flows arising from investing|||
||14,615,948.48|32,734,179.68|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|312,000,000.00|309,000,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||

Nanjing Putian Telecommunications Co., Ltd. 2018 Third Quarterly Report
||||
|-|-|-|
|Subtotal of cash inflow from financing|||
||312,000,000.00|309,000,000.00|
|activities|||
|Cash paid for settling debts|319,000,000.00|372,000,000.00|
|Cash paid for dividend and profit|||
||14,749,795.66|10,736,760.60|
|distributing or interest paying|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from financing|||
||333,749,795.66|382,736,760.60|
|activities|||
|Net cash flows arising from financing|||
||-21,749,795.66|-73,736,760.60|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|0.00|-100,956.62|
|exchange rate|||
|V. Net increase of cash and cash|||
||-93,227,202.19|-93,296,777.25|
|equivalents|||
|Add: Balance of cash and cash|||
||110,026,464.66|164,361,696.67|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||16,799,262.47|71,064,919.42|
|equivalents at the period -end|||

II. Audit report
Whether the 3rd quarterly report has been audited or not
□Yes√ No
The 3rd quarterly report of the Company has not been audited.
Board of Directors of
Nanjing Putian Telecommunications Co., Ltd. 31 October 2018