Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018 Nanjing Putian Telecommunications Co., Ltd.
First Quarterly Report 2018
April 2018
Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018 Section I. Important Notice
Board of Directors and the Supervisory Committee of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint.
All Directors are attended the Board Meeting for Quarterly Report deliberation. Li Linzhen, Principal of the Company, Li Linzhen, person in charger of accounting works and Gao Wen, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of this Quarterly Report is authentic, accurate and complete.
Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018 Section II. Main financial data and changes of shareholders I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes√No
|||||
|-|-|-|-|
|||At the same period of last|Changes of this period over|
||At the reporting period|||
|||year|same period of last year|
|Operating income (RMB)|579,271,964.31|356,684,098.74|62.40%|
|Net profit attributable to shareholders of|-6,411,052.72|-20,717,596.23||
||||69.06%|
|the listed company (RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting|-29,910,522.65|-20,711,454.82|-44.42%|
|non-recurring gains and losses (RMB)||||
|Net cash flow arising from operating|-181,745,941.41|-197,146,881.56||
||||7.81%|
|activities (RMB)||||
|Basic earnings per share (RMB/Share)|-0.030|-0.096|68.75%|
|Diluted earnings per share (RMB/Share)|-0.030|-0.096|68.75%|
|Weighted average ROE|-1.84%|-6.29%|4.45%|
||||Changes of this period-end|
||At the end of the reporting|||
|||At the end of last year|over same period-end of last|
||period|||
||||year|
|Total assets (RMB)|1,861,597,160.00|2,116,312,318.51|-12.04%|
|Net assets attributable to shareholder of|345,818,355.42|352,228,571.54||
||||-1.82%|
|listed company (RMB)||||

Items of non-recurring gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||period-end||
|Gains/losses from the disposal of non-current asset (including the|||
||-4,997,146.30||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|||
|||Including 30 million Yuan from|
|including the subsidy enjoyed in quota or ration according to|||
||33,218,590.42|housing expropriation|
|national standards, which are closely relevant to enterprise’s|||
|||compensation|
|business)|||
|Other non-operating income and expenditure except for the|||
||-27,008.57||
|aforementioned items|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|Less: impact on income tax|0.00||
|Impact on minority shareholders’ equity (post-tax)|4,694,965.62||
|Total|23,499,469.93|--|

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. Total number of shareholders at the end of this report period and top ten shareholders 1. Total number of common shareholders and preference shareholders with voting rights recovered and top ten common shareholders
In shares
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Total preference shareholders|||||
|Total number of common||||with voting rights recovered at|||||
|||8,326|||||0||
|shareholders at the end of report|||||||||
|||||end of reporting period (if|||||
|period|||||||||
|||||applicable)|||||
|Top ten shareholders|||||||||
||||||Amount of|Number of share pledged/frozen|||
|Shareholder’s|Nature of|Proportion of|Amount of shares||||||
||||||restricted shares||||
|name|shareholder|shares held|held|||State of share||Amount|
||||||held||||
|China Potevio|State-ownedcorporation|53.49%|115,000,000||115,000,000||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreigncorporation|4.46%|9,596,527||0||||
|ShenwanHongyuanSecurities (HongKong) Co., LTD.|Foreigncorporation|4.46%|9,587,925||0||||
|Zhang Huai’an|Domestic natureperson|1.31%|2,807,000||0||||
|Zheng Enyue|Domestic natureperson|1.12%|2,405,739||0||||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||||||
|-|-|-|-|-|-|-|
|Sun Huiming|Domestic natureperson|0.93%|2,007,110|0|||
|Guosen Securities(H.K.) BrokerCo., Ltd.|Foreigncorporation|0.87%|1,861,882|0|||
|Gu Jinhua|Domestic natureperson|0.83%|1,783,771|0|||
|BOCISECURITIESLIMITED|Foreigncorporation|0.80%|1,716,945|0|||
|LI SHERYNZHAN MING|Foreign natureperson|0.53%|1,145,000|0|||
|The top ten circulation shareholders shareholdings|||||||
||||||Type of shares||
|Shareholder’s name||Amount of listed circulation shares held|||||
||||||Type|Amount|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED||9,596,527|||Domestically||
||||||listed foreign|9,596,527|
||||||shares||
|Shenwan Hongyuan Securities(Hong Kong) Co., LTD.||9,587,925|||Domestically||
||||||listed foreign|9,587,925|
||||||shares||
|Zhang Huai’an||2,807,000|||Domestically||
||||||listed foreign|2,807,000|
||||||shares||
|Zheng Enyue||2,405,739|||Domestically||
||||||listed foreign|2,405,739|
||||||shares||
|Sun Huiming||2,007,110|||Domestically||
||||||listed foreign|2,007,110|
||||||shares||
|Guosen Securities (H.K.) BrokerCo., Ltd.||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||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
|||||
|-|-|-|-|
|LI SHERYN ZHAN MING|1,145,000|Domestically||
|||listed foreign|1,145,000|
|||shares||
|Jin Yunhua|950,162|Domestically||
|||listed foreign|950,162|
|||shares||
|Note of related relationship among|Among the top ten shareholders, China Potevio is neither a related party nor a person acting|||
|the above shareholders and|in concert with the others. It’s unknown by the Company whether there are related parties or|||
|concerted actors|persons acting in concert among the other shareholders.|||
|Explanation on top ten common||||
|shareholders involving margin|N/A|||
|business (if applicable)||||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred stock held
□ Applicable√ Not applicable
Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018 Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons
√ Applicable□ Not applicable
|||||||||
|-|-|-|-|-|-|-|-|
|||||Amount of|Changesratio (%)|||
|Item|2018-3-31(RMB)|2017-12-31(RMB)|||||Reasons of great changes|
|||||changes (RMB)||||
||||-12,979,484.30||-39.96%|Note receivables are maturityacceptance in the period andendorsement for payment ofgoods||
|Notes receivable|19,497,979.29|32,477,463.59||||||
||||94,819,583.04||176.17%|Notes are paid for goods in theperiod||
|Advance payment|148,641,520.83|53,821,937.79||||||
||||-203,284,825.75||-41.35%|Some of the inventory are sendout goods in the period for salesresulted||
|Inventory|288,318,955.25|491,603,781.00||||||
|Other current|||-37,911,471.46||-83.72%|Products are has been sale,taxes deductible||
||7,371,420.98|45,282,892.44||||||
|assets||||||||
||||62,861,182.04||311.79%|The bank acceptance are issuedfor good payment in the periodincreased||
|Notes payable|83,022,869.18|20,161,687.14||||||
||||-187,990,632.02||-59.27%|Some of the products are sendout goods in the period for salesresulted||
|Received in||||||||
||129,207,192.64|317,197,824.66||||||
|advance||||||||
|Taxes payable|4,769,117.70|18,883,017.18|-14,113,899.48||-74.74%|Taxes declined in the period||
||||-3,218,590.42||-37.15%|Some of the governmentsubsidy used for resettlementpersonnel are utilized in theperiod, which has originallyreckoned into deferred income||
|Deferred income|5,445,512.48|8,664,102.90||||||
|||||Amount of|Changesratio (%)|||
||Jan-Mar 2018 (R|Jan-Mar 2017 (R||||||
||MB)|MB)||changes (RMB)||||
||||222,587,865.57||62.40%|Compared with same period oflast year, we have a salesrevenue from special networkcommunication products in theperiod||
|Operating income|579,271,964.31|356,684,098.74||||||
||||225,972,041.22||78.35%|Compared with same period oflast year, we has a new sales ofspecial network communication||
|Operating cost|514,377,099.03|288,405,057.81||||||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
|||||||
|-|-|-|-|-|-|
||||2,732,156.06|100.26%|The bill discount costsincreased and soaring lendingrate in the period|
|Financial||||||
||5,457,315.10|2,725,159.04||||
|expenses||||||
||||190,458.64|63.90%|Joint stock enterprise reducedeficits in the period from ayear earlier|
|Investment||||||
||-107,597.53|-298,056.17||||
|income||||||
||||-12,904,576.01|-59.59%|1. Influenced by the springfestival holiday and lessinvestment from operators andminor purchasing amount in1Q, the first quarter usually isthe off-season for the Company,however the period charge areoccurred in normal; meanwhile,part of the operation entity arerelocated in the period, thusoperation has a certain influence2. The period charge increasedfrom a year earlier for internalreform and adjustment,compensation for personnelshunting and investment forR&D in the period|
|Operating profit|-34,558,568.29|-21,653,992.28||||
||||29,319,191.51|1460.93%|The housing expropriationcompensation of 30 millionYuan received in the period|
|Non business||||||
||31,326,075.99|2,006,884.48||||
|income||||||
|Total profit|-3,282,546.99|-20,333,185.77|17,050,638.78|83.86%|The housing expropriationcompensation received in theperiod|
|Net profit|-3,306,273.76|-20,605,994.84|17,299,721.08|83.95%||
|Net profit|||14,306,543.51|69.06%||
|attributable to||||||
||-6,411,052.72|-20,717,596.23||||
|owners of parent||||||
|company||||||
||||30,501,102.00|805.95%|The housing expropriationcompensation of 30 millionYuan are received by theCompany and subsidiary in theperiod|
|Net cash flow||||||
|from investment|26,716,607.25|-3,784,494.75||||
|activity||||||
|Subtotal of cash|||75,010,000.00|61.74%|Bank loans increased in theperiod|
|inflow from||||||
||196,510,000.00|121,500,000.00||||
|financing||||||
|activities||||||
||||58,550,880.31|436.58%|Bank loans increased in the|
|Net cash flow|45,139,648.84|-13,411,231.47||||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
|||||||
|-|-|-|-|-|-|
|from financing|||||period|
|activities||||||
|Net increase in|||104,360,565.41|48.69%|Cash flow respectively fromoperation /investment/financingactivities increased in the period|
|cash and cash|-109,982,042.37|-214,342,607.78||||
|equivalents||||||

 II. Analysis and explanation of significant events and their influence and solutions
√Applicable□ Not applicable
1. As the net profit attributable to the shareholders for the three consecutive years in 2014, 2015 and 2016 was a negative value, stock of the Company suspended since 11 May 2017 on Shenzhen Stock Exchange after decision by SSE. Relevant specific countermeasures and progress for returning to the market can be found in the “Notice of Countermeasures and Relevant Progress for Returning to the Mark” released montly. The Company released the Annual Report 2017 on 24 April 2018 and according to the audit reprot issued from Pan-China Certifier Public Accountants, the net profit attributable to shareholder of listed company and net profit attributable to shareholder of listed company after deducted the non-recurring gains/losses are amounted as positive result, the Company plans to put forward the application for stock resumption to the Shenzhen Stock Exchange in five trading days after the Annual Report 2017 disclosed.
2. In reporting period, the Company and subsidiary - Nanjing Bada Telecommunications Equipment Co., Ltd. entered into a framework agreement with compensation concerned with Nanjing Qinghuan Housing Expropriation Service Co., Ltd., found more in relevant notice as:
||||
|-|-|-|
|||Website query index of interim report|
|Summary of important issues|Date of disclosure||
|||disclosure|
|Notice of Countermeasures and RelevantProgress for Returning to the Mark|2018-01-06|Juchao Website (www.cninfo.com.cn)|
||2018-02-07|Juchao Website (www.cninfo.com.cn)|
||2018-03-06|Juchao Website (www.cninfo.com.cn)|
||2018-04-10|Juchao Website (www.cninfo.com.cn)|
|Notice of Signing the frameworkagreement with compensation concerned|||
||2018-03-20|Juchao Website (www.cninfo.com.cn)|
|Progress of Housing Expropriation|2018-04-14|Juchao Website (www.cninfo.com.cn)|

 III. Commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies
□ Applicable√ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies.
IV. Forecast of operation performance from Jan.– June 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
Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018□ Applicable√ Not applicable
V. Securities Investment
□ Applicable√ Not applicable
No security investment in Period.
VI. Derivative investment
□ Applicable√ Not applicable
No derivative investment in Period.
VII. 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.
VIII. Guarantee outside against the regulation
□Applicable√Not applicable
The Company had no guarantee outside against the regulation in the reporting period.
IX. 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. First Quarterly Report 2018 IV. Financial statement
I. Financial statement
1. Consolidated balance sheet
Prepared by Nanjing Putian Telecommunications Co., Ltd.
2018-03-31
In RMB
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Current assets:|||
|Monetary funds|278,330,550.62|327,752,066.73|
|Settlement provisions|||
|Capital lent|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
||19,497,979.29|32,477,463.59|
|Notes receivable|||
||748,056,322.20|780,089,607.41|
|Accounts receivable|||
|Accounts paid in advance|148,641,520.83|53,821,937.79|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|22,311,197.79|29,325,423.73|
|Purchase restituted finance asset|||
|Inventories|288,318,955.25|491,603,781.00|
|Assets held for sale|||
|Non-current asset due within one|||
|year|||
|Other current assets|7,371,420.98|45,282,892.44|
|Total current assets|1,512,527,946.96|1,760,353,172.69|
|Non-current assets:|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|Loans and payments on behalf|||
|Finance asset available for sales|741,953.00|741,953.00|
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|186,869,908.70|186,977,506.23|
|Investment property|12,669,755.82|12,802,485.28|
|Fixed assets|113,155,230.93|119,741,921.78|
|Construction in progress|2,384,533.27|2,163,267.89|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|30,442,266.55|30,736,816.88|
|Expense on Research and|||
|Development|||
|Goodwill|||
|Long-term expenses to be|2,805,564.77|2,795,194.76|
|apportioned|||
|Deferred income tax asset|||
|Other non-current asset|||
|Total non-current asset|349,069,213.04|355,959,145.82|
|Total assets|1,861,597,160.00|2,116,312,318.51|
|Current liabilities:|||
|Short-term loans|437,510,000.00|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|83,022,869.18|20,161,687.14|
|Accounts payable|647,741,498.52|806,672,174.17|
|Accounts received in advance|129,207,192.64|317,197,824.66|
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|commission payable|||
|Wage payable|19,975,807.28|21,033,311.73|
|Taxes payable|4,769,117.70|18,883,017.18|
|Interest payable|396,333.33|531,667.36|
|Dividend payable|1,692,213.38|1,692,213.38|
|Other accounts payable|62,019,561.60|60,803,921.89|
|Reinsurance payables|||
|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|1,386,334,593.63|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|||
|Special accounts payable|||
|Projected liabilities|||
|Deferred income|5,445,512.48|8,664,102.90|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|5,445,512.48|8,664,102.90|
|Total liabilities|1,391,780,106.11|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|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|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|-51,016,955.35|-44,605,902.63|
|Total owner’s equity attributable to|345,818,355.42|352,228,571.54|
|parent company|||
|Minority interests|123,998,698.47|120,893,826.56|
|Total owner’s equity|469,817,053.89|473,122,398.10|
|Total liabilities and owner’s equity|1,861,597,160.00|2,116,312,318.51|

 Legal representative: Li Linzhen
Person in charger of accounting works: Li Linzhen
Person in charge of accounting organ: Gao Wen
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
||163,332,090.48|124,984,257.34|
|Monetary funds|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
||11,714,418.56|9,184,642.99|
|Notes receivable|||
|Accounts receivable|395,951,212.77|425,563,836.97|
|Account paid in advance|117,036,719.86|22,368,455.10|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|24,957,977.26|41,195,020.22|
|Inventories|150,753,326.20|351,155,734.21|
|Assets held for sale|||
|Non-current assets maturing within|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|one year|||
|Other current assets|1,062,736.11|38,624,058.06|
|Total current assets|864,808,481.24|1,013,076,004.89|
|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|355,706,557.90|355,814,155.43|
|Investment property|||
|Fixed assets|53,313,751.36|56,349,626.12|
|Construction in progress|1,830,131.25|1,830,131.25|
|Project materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|12,487,070.10|12,676,942.23|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|2,613,514.77|2,580,098.76|
|Deferred income tax assets|||
|Other non-current assets|||
|Total non-current assets|426,692,978.38|429,992,906.79|
|Total assets|1,291,501,459.62|1,443,068,911.68|
|Current liabilities:|||
|Short-term borrowings|336,000,000.00|309,000,000.00|
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|82,022,869.18|19,161,687.14|
|Accounts payable|345,354,479.75|387,637,755.76|
|Accounts received in advance|110,067,882.02|290,793,176.69|
|Wage payable|8,355,126.51|7,816,724.35|
|Taxes payable|2,054,307.32|4,595,540.32|
|Interest payable|396,333.33|396,333.33|

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|Dividend payable|||
|Other accounts payable|208,492,536.79|213,668,065.12|
|Liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|1,092,743,534.90|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|||
|Special accounts payable|||
|Projected liabilities|||
|Deferred income|578,359.48|1,770,926.90|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|578,359.48|1,770,926.90|
|Total liabilities|1,093,321,894.38|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|-189,827,294.33|-179,778,157.50|
|Total owner’s equity|198,179,565.24|208,228,702.07|

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|Total liabilities and owner’s equity|1,291,501,459.62|1,443,068,911.68|

 3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Item|The Period|Last Period|
|I. Total operating income|579,271,964.31|356,684,098.74|
|Including: Operating income|579,271,964.31|356,684,098.74|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|612,747,579.19|378,040,034.85|
|Including: Operating cost|514,377,099.03|288,405,057.81|
|Interest expense|||
|Commission charge and commission|||
|expense|||
|Cash surrender value|||
|Net amount of expense of|||
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Operating tax and extras|1,923,329.45|1,946,201.09|
|Sales expenses|44,546,793.22|43,970,560.00|
|Administration expenses|46,443,042.39|40,993,510.71|
|Financial expenses|5,457,315.10|2,725,159.04|
|Losses of devaluation of asset||-453.80|
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
||-107,597.53|-298,056.17|
|with “-”)|||
|Including: Investment income on|||
||-107,597.53|-298,056.17|
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|Assets disposal income (Loss is|||
||-5,126,100.94||
|listed with “-”)|||
|Other income|4,150,745.06||
|III. Operating profit (Loss is listed with|||
||-34,558,568.29|-21,653,992.28|
|“-”)|||
|Add: Non-operating income|31,326,075.99|2,006,884.48|
|Less: Non-operating expense|50,054.69|686,077.97|
|IV. Total Profit (Loss is listed with “-”)|-3,282,546.99|-20,333,185.77|
|Less: Income tax expense|23,726.77|272,809.07|
|V. Net profit (Net loss is listed with “-”)|-3,306,273.76|-20,605,994.84|
|(I) Continuous operation net profit|||
|(Net loss is listed with “-”)|||
|(II) Discontinued operation net|||
|profit (Net loss is listed with “-”)|||
|Net profit attributable to owner’s of|||
||-6,411,052.72|-20,717,596.23|
|parent company|||
|Minority shareholders’ gains and|||
||3,104,778.96|111,601.39|
|losses|||
|VI. Net after-tax of other comprehensive|||
||929.55||
|income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|836.60||
|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|836.60||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|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|836.60||
|financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|92.95||
|shareholders|||
|VII. Total comprehensive income|-3,305,344.21|-20,605,994.84|
|Total comprehensive income|||
||-6,410,216.12|-20,717,596.23|
|attributable to owners of parent Company|||
|Total comprehensive income|||
||3,104,871.91|111,601.39|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|-0.030|-0.096|
|(ii) Diluted earnings per share|-0.030|-0.096|

 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: Li Linzhen
Person in charge of accounting organ: Gao Wen
4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|The Period|Last Period|

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|I. Operating income|368,044,692.84|124,761,034.35|
|Less: Operating cost|350,613,943.72|107,193,782.94|
|Operating tax and extras|743,171.53|1,140,506.17|
|Sales expenses|19,536,510.54|16,543,492.15|
|Administration expenses|18,317,322.83|15,235,465.23|
|Financial expenses|5,448,047.84|2,567,947.79|
|Losses of devaluation of asset|||
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is|||
||-107,597.53|-298,056.17|
|listed with “-”)|||
|Including: Investment income|||
|on affiliated company and joint venture|||
|Assets disposal income (Loss is|||
||-2,858,698.79||
|listed with “-”)|||
|Other income|226,835.90||
|II. Operating profit (Loss is listed|||
||-29,353,764.04|-18,218,216.10|
|with “-”)|||
|Add: Non-operating income|19,326,075.71|269,172.88|
|Less: Non-operating expense|21,448.50|3,716.94|
|III. Total Profit (Loss is listed with|||
||-10,049,136.83|-17,952,760.16|
|“-”)|||
|Less: Income tax expense|||
|IV. Net profit (Net loss is listed with|||
||-10,049,136.83|-17,952,760.16|
|“-”)|||
|(I) Continuous operation net profit|||
|(Net loss is listed with “-”)|||
|(II) Discontinued operation net|||
|profit (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|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|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|||
|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|-10,049,136.83|-17,952,760.16|
|VII. Earnings per share:|||
|(i) Basic earnings per share|-0.047|-0.084|
|(ii) Diluted earnings per share|-0.047|-0.084|

 5. Consolidated Cash Flow Statement
In RMB
||||
|-|-|-|
|Item|The Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|410,981,475.60|438,619,525.43|
|services|||
|Net increase of customer deposit|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|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|||
|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|2,118,858.81|1,648,122.86|
|Other cash received concerning|||
||4,142,311.10|4,227,599.68|
|operating activities|||
|Subtotal of cash inflow arising from|||
||417,242,645.51|444,495,247.97|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|447,735,985.99|486,173,980.92|
|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|81,033,416.92|75,293,801.89|

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|Taxes paid|25,613,995.27|35,291,736.98|
|Other cash paid concerning|||
||44,605,188.74|44,882,609.74|
|operating activities|||
|Subtotal of cash outflow arising from|||
||598,988,586.92|641,642,129.53|
|operating activities|||
|Net cash flows arising from operating|||
||-181,745,941.41|-197,146,881.56|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|175,660.00|0.00|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
||30,000,000.00|0.00|
|investing activities|||
|Subtotal of cash inflow from investing|||
||30,175,660.00|0.00|
|activities|||
|Cash paid for purchasing fixed,|||
||3,459,052.75|3,784,494.75|
|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|||
||3,459,052.75|3,784,494.75|
|activities|||
|Net cash flows arising from investing|||
||26,716,607.25|-3,784,494.75|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|Including: Cash received from|||
|absorbing minority shareholders’|||
|investment by subsidiaries|||
|Cash received from loans|196,510,000.00|121,500,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||196,510,000.00|121,500,000.00|
|activities|||
|Cash paid for settling debts|146,550,000.00|131,500,000.00|
|Cash paid for dividend and profit|||
||4,820,351.16|3,411,231.47|
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from|||
||151,370,351.16|134,911,231.47|
|financing activities|||
|Net cash flows arising from financing|||
||45,139,648.84|-13,411,231.47|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|-92,357.05|0.00|
|exchange rate|||
|V. Net increase of cash and cash|||
||-109,982,042.37|-214,342,607.78|
|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|||
||201,349,242.17|270,612,105.29|
|equivalents at the period -end|||

6. Cash Flow Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|The Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
||180,148,573.15|172,986,876.11|
|commodities and providing labor|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|services|||
|Write-back of tax received|220,972.65|0.00|
|Other cash received concerning|||
||41,176,795.62|2,648,238.20|
|operating activities|||
|Subtotal of cash inflow arising from|||
||221,546,341.42|175,635,114.31|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|220,729,376.07|209,736,198.41|
|service|||
|Cash paid to/for staff and workers|32,774,904.01|30,107,926.88|
|Taxes paid|4,805,842.29|13,865,374.48|
|Other cash paid concerning|||
||19,157,146.01|20,183,699.36|
|operating activities|||
|Subtotal of cash outflow arising from|||
||277,467,268.38|273,893,199.13|
|operating activities|||
|Net cash flows arising from operating|||
||-55,920,926.96|-98,258,084.82|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|175,660.00||
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
||18,000,000.00||
|investing activities|||
|Subtotal of cash inflow from investing|||
||18,175,660.00||
|activities|||
|Cash paid for purchasing fixed,|||
||3,151,776.74|3,133,903.56|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||

Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018
||||
|-|-|-|
|investing activities|||
|Subtotal of cash outflow from investing|||
||3,151,776.74|3,133,903.56|
|activities|||
|Net cash flows arising from investing|||
||15,023,883.26|-3,133,903.56|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|142,000,000.00|70,000,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning|||
||0.00|20,000,000.00|
|financing activities|||
|Subtotal of cash inflow from financing|||
||142,000,000.00|90,000,000.00|
|activities|||
|Cash paid for settling debts|115,000,000.00|80,000,000.00|
|Cash paid for dividend and profit|||
||4,756,891.11|2,154,277.08|
|distributing or interest paying|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from|||
||119,756,891.11|82,154,277.08|
|financing activities|||
|Net cash flows arising from financing|||
||22,243,108.89|7,845,722.92|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|||
|exchange rate|||
|V. Net increase of cash and cash|||
||-18,653,934.81|-93,546,265.46|
|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|||
||91,372,529.85|70,815,431.21|
|equivalents at the period -end|||

II. Audit report
Whether the 1st quarterly report has been audited or not
□Yes√ No
The 1st quarterly report of the Company has not been audited.
Nanjing Putian Telecommunications Co., Ltd. First Quarterly Report 2018 Board of Directors of
Nanjing Putian Telecommunications Co., Ltd. 28 April 2018