ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
Tsann Kuen (China) Enterprise Co., Ltd.
Report for the First Quarter of 2017
April 2017
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
Section I Important Statements
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Tsann Kuen (China) Enterprise Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liableforthat.
All directors attended theboardsession forreviewing thisreport.
Mr. Pan Zhirong, company principal, and Mr. Feng Zhiqing, head of the accounting work& the accounting division (head of accounting) jointly declare that the financial statements carried in thisreportare factual, accurate and complete.
This Report is prepared in both Chinese and English. Should there be any discrepancy between thetwo versions, theChineseversion shall prevail.
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
Section II Company Profile
I Keyfinancial results
Whether theCompany performedanyretroactiveadjustmentstoorrestatementofitsaccountingdataduetochangesof accounting policiesorcorrectionofaccountingerrors
□Yes√No
Unit:RMB
|||||
|-|-|-|-|
|Item|January-March2017|January-March2016|+/-%|
|Operatingrevenues|454,378,577.36|400,158,372.95|13.55|
|NetprofitattributabletoshareholdersoftheCompany|6,800,900.65|6,272,704.45|8.42|
|Net profit attributable to shareholders of the Company beforeexceptionalprofitandloss|5,620,130.15|4,561,371.13|23.21|
|Netoperatingcashflow|3,169,455.03|-21,744,915.13|114.58|
|Basicearningspershare(RMB/share)|0.04|0.03|33.33|
|Dilutedearningspershare(RMB/share)|0.04|0.03|33.33|
|Weightedaveragereturnonequity(%)|1.10|1.11|-0.01|
|Item|31March2017|31December2016|+/-%|
|Totalassets|1,602,588,567.75|1,697,533,004.99|-5.59|
|NetassetsattributabletoshareholdersoftheCompany|617,816,036.41|610,856,271.31|1.14|

 Totalsharecapitaluptotheformertradingdatebeforethedisclosure:
|||
|-|-|
|Totalsharecapitaluptotheformertradingdatebeforethedisclosure(share)|185,391,680|
|FullydilutedEPScalculatedbythenewestsharecapital(RMB/share)|0.04|

 Exceptionalprofitandloss
√Applicable□Notapplicable
Unit:RMB
||||
|-|-|-|
|Item|January-March2017|Note|
|Profit/loss on disposal of non-current assets (including offset amount of assetimpairmentprovisions)|166,095.78||

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|January-March2017|Note|
|Tax rebates, reductions and exemptions due to approval beyond authority or thelackofofficialapprovaldocuments|||
|Government grants charged to the profit/loss for the Reporting Period (except forthegovernmentgrantscloselyrelatedtothebusinessoftheCompanyandgivenatafixedquotaoramountinaccordancewiththeState’suniformstandards)|516,075.00||
|Capital occupation charges on non-financial enterprises that are charged to theprofit/lossfortheReportingPeriod|||
|Profit due to the situation where investment costs for the Company to obtainsubsidiaries,associatesandjointventuresarelowerthantheenjoyablefairvalueofidentifiablenetassetsofinvesteeswhenmakinginvestments|||
|Profit/lossonnon-monetaryassetswap|||
|Profit/lossonentrustingotherswithinvestmentsorassetmanagement|||
|AssetimpairmentprovisionsduetoactsofGodsuchasnaturaldisasters|||
|Profit/lossondebtrestructuring|||
|Restructuringcostsinstaffarrangement,integration,etc.|||
|Profit/loss on thepart over the fair value due to transactionswith distinctly unfairprices|||
|Reporting Period net profit/loss of subsidiaries acquired through business mergersunderthesamecontrolfromperiod-beginningstomergerdates|||
|Profit/lossoncontingenciesirrelevanttotheCompany’snormalbusinessactivities|||
|Profit/loss on fair value changes of transactional financial assets and liabilities &investmentprofitondisposaloftransactionalfinancialassetsandliabilitiesaswellasfinancialassetsavailableforsale,exceptforeffectivelyhedgingbusinessrelatedtonormalbusinessoperationsoftheCompany|213,698.63|Earningsfromwealthmanagementproducts|
|Impairmentprovisionreversalforaccountsreceivableonwhichtheimpairmenttestiscarriedoutseparately|||
|Profit/lossonentrustedloans|||
|Profit/loss on fair value changes in investing properties of which the subsequentmeasurementiscarriedoutadoptingthefairvaluemethod|||
|Effect on Reporting Period profit/loss when a one-off adjustment is made toReportingPeriodprofit/Lossaccordingtorequirementsoftaxation,accountingandotherrelevantlawsandregulations|||
|Custodyfeeincomewhenentrustedwithoperations|||

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|January-March2017|Note|
|Non-operatingincomeandexpenseotherthantheabove|950,457.93||
|Otherprofit/lossthatmeetthedefinitionofexceptionalprofit/loss|||
|Less:Incometaxeffects|238,677.92||
|Minorityinterestseffects(aftertax)|426,878.92||
|Total|1,180,770.50||

Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the ExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalProfitandLoss, orreclassifiedanyexceptionalprofit/lossitemgivenasanexampleinthesaidexplanatoryannouncementtorecurrentprofit/loss□Applicable√Notapplicable
II Total number ofshareholders atthe period-endand shareholdingsoftop ten shareholders 1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as shareholdingsoftoptenshareholders
Unit:share
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total number of common shareholders at theperiod-end||17,526||Total number of preferenceshareholders with resumed votingrightsattheperiod-end(ifany)|||0||
|Shareholdingsoftoptenshareholders|||||||||
|Nameofshareholder|Natureofshareholder|Shareholdingpercentage(%)|Numberofsharesheld||Numberofrestrictedsharesheld|Pledgedorfrozenshares|||
|||||||Statusofshares||Numberofshares|
|FORDCHEEDEVELOPMENTLIMITED|Foreigncorporation|29.10%|53,940,530||0|N/A||0|
|EUPAINDUSTRYCORPORATIONLIMITED|Foreigncorporation|13.09%|24,268,840||0|N/A||0|
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreigncorporation|5.74%|10,646,857||0|N/A||0|
|FILLMANINVESTMENTSLIMITED|Foreigncorporation|2.49%|4,621,596||0|N/A||0|
|CHINAMERCHANTSSECURITIES(HK)CO.,LTD.|State-ownedcorporation|1.12%|2,079,750||0|N/A||0|

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|SHENWAN HONGYUANSECURITIES (HK) CO.,LTD.|Foreigncorporation|1.06%|1,956,752||0|N/A||0|
|CHENYONGQUAN|Domesticindividual|1.02%|1,889,019||0|N/A||0|
|CHENYONGQING|Foreignindividual|0.79%|1,458,349||0|N/A||0|
|CHENLIJUAN|Foreignindividual|0.71%|1,308,017||0|N/A||0|
|DINGXIAOLUN|Domesticindividual|0.58%|1,082,300||0|N/A||0|
|Shareholdingsoftoptennon-restrictedshareholders|||||||||
|Nameofshareholder||Numberofnon-restrictedsharesheld||Varietyofshares|||||
|||||Variety|||Number||
|FORDCHEEDEVELOPMENTLIMITED||53,940,530||Domesticallylistedforeignshares|||53,940,530||
|EUPAINDUSTRYCORPORATIONLIMITED||24,268,840||Domesticallylistedforeignshares|||24,268,840||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED||10,646,857||Domesticallylistedforeignshares|||10,646,857||
|FILLMANINVESTMENTSLIMITED||4,621,596||Domesticallylistedforeignshares|||4,621,596||
|CHINAMERCHANTSSECURITIES(HK)CO.,LTD.||2,079,750||Domesticallylistedforeignshares|||2,079,750||
|SHENWANHONGYUANSECURITIES(HK)CO.,LTD.||1,956,752||Domesticallylistedforeignshares|||1,956,752||
|CHENYONGQUAN||1,889,019||Domesticallylistedforeignshares|||1,889,019||
|CHENYONGQING||1,458,349||Domesticallylistedforeignshares|||1,458,349||
|CHENLIJUAN||1,308,017||Domesticallylistedforeignshares|||1,308,017||
|DINGXIAOLUN||1,082,300||Domesticallylistedforeignshares|||1,082,300||
|Related or acting-in-concert parties among theaboveshareholders||Thefirst,thesecondandthefourthlargestshareholdersaretheCompany’scorporatecontrolling shareholders. It is unknown to the Company whether there existsassociated relationship among the shareholders above or they are acting-in-concertentities as stipulated in theAdministrative Measures on Information Disclosure ofChangesinShareholdingofListedCompanies.|||||||

Did any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conduct any
promissoryrepoduringtheReportingPeriod?
□Yea√No
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
NosuchcasesintheReportingPeriod.
2.Totalnumberofpreferenceshareholdersandshareholdingsofthetoptenofthem
□Applicable√Notapplicable
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
Section III Significant Events
I Changes in major accounting statement items and financial indicators for the Reporting Period, as well asreasons forsuch changes
√Applicable□Notapplicable
Unit:RMB
||||||
|-|-|-|-|-|
|Item|31March2017|31December2016|+/-%|Mainreasonforchange|
|Interestreceivable|657,962.20|5,519.56|11,820.56|Termdepositsincreasedandtheaccruedinterestincreasedaccordingly|
|Othercurrentassets|301,329,722.22|139,354,484.01|116.23|Wealth management products of RMB150millionwerepurchased.|
|Constructioninprogress|400,542.52|269,633.08|48.55|Increaseinongoingconstruction|
|Othernon-currentassets|862,311.27|1,248,273.23|-30.92|Examinationandacceptanceofmolds|
|Short-termborrowings|25,113,452.00|0.00|100.00|Exportinvoicefinancing.|
|Notespayable|13,054,224.84|23,251,704.93|-43.86|Maturityofnotespayable|
|Taxesandfarespayable|8,040,623.71|16,965,068.11|-52.60|Paymentofcorporateincometax|

||||||
|-|-|-|-|-|
|Item|January-March2017|January-March2016|+/-%|Mainreasonforchange|
|Taxesandsurtaxes|3,337,174.29|2,421,468.97|37.82|Reclassificationofsomeadministrativeexpensesintothisitem|
|Financecosts|1,738,365.97|-259,634.93|-769.54|Unrealizedevaluatedexchangeloss|
|Assetimpairmentloss|-1,181,070.83|1,087,300.12|-208.62|Reversalofbad-debtprovisionsduetocollectionofpaymentsfromcustomers|
|Gainsonfairvaluechanges|0.00|5,095,350.00|-100.00|Noforwardforexcontractsforthecurrentperiod|
|Returnsoninvestment|213,698.63|-1,003,403.59|121.30|Lossondeliveredforwardforexcontractsinthesameperiodoflastyear|
|Non-operatingrevenue|1,689,529.16|1,204,888.70|40.22|Insurancepaymentsforwinddamages|
|Non-operatingexpense|56,900.45|7,548.59|653.79|Donationstostudentsinneed|
|Corporateincometax|3,622,669.95|1,860,460.96|94.72|Increaseinprofit|
|Netoperatingcashflow|3,169,455.03|-21,744,915.13|114.58|Receivablesfromcustomersdueattheendoflastyearwerecollectedinthecurrentperiod|
|Netinvestmentcashflow|-300,417,252.45|-180,176,787.85|-66.73|Increasedoutflowofrestrictedtermdeposits|
|Netfinancingcashflow|21,832,513.50|-11,622,330.69|287.85|Exportinvoicefinancingandborrowingsfromrelatedpartiesincreased|

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
II Progress ofsignificanteventsandanalysis&explanationson theirinfluenceandsolutions√Applicable□Notapplicable
Contingencies
（1）ThesubsidiaryoftheCompany-TsannKuenChina(Shanghai)EnterpriseCo.,Ltd.(hereafter,TKS) signedthePlantLeasing contract with Shanghai Liangxin Industrial Co., Ltd. (hereafter, SHLX) at November 2007, and leased the plant (including plant affiliatedland,groundbuildingsandrelatedancillaryequipment,etc)locatedinNo.4407CaoanRoadJiadingDistrict,Shanghaito SHLX. The real estate certificate of leasehold is Hu FangdiJiaZi (2006) No. 011945, the lease period is from November 2007 to November 2019, the purpose to the lessee for the use of legitimate factory and storage. The provisions of contract point out if the lessee need to build plant because of productionshould to obtain government and relevantauthorities’agreements. Except to confiscatethedeposit,thelessorcanterminatethecontractanddoesnothavetoundertakeanyresponsibilityifthelesseesubleasethe leasehold,makeimprovementoradditiontotheleaseholdwithouttoobtainthewrittenconsentfromlessor.
TKS submitted the civil action to Shanghai Jiading District People's Courtby cause of action“the lessee SHLX decorated and subleasedtheleaseholdtoShanghaiHujiaFruitSalesLimitedCompany(hereafter,SHHJ)withouttoobtainthewrittenconsentfrom lessor”on28October2015,andrequiredearlyterminationofthePlantLeasingcontractwithSHLX,andrequiredSHHJtoterminate constructionandtorepristinatetheleasehold.
Uptotheendofthereportingdate,thecivilactionisstillinprocess.
Shanghai Jiading District People's Court ontheShanghaiTsannKuen andSHLX disputes tomake civil judgments ((2015) Jia Min San (Min) ChuziNo.1640) on 23 November 2016: 1) the two sides release the contract on 12 November 2015. 2)SHLX should to returntoTKSofthesiteandbuildings,dormitory,etconNo.4407CaoAnRoadtoShanghaibeeffectivewithin20days.
ShanghaiJiadingDistrictPeople'sCourtontheShanghaiTsannKuenandSHHJdisputemade((2015)JiaMinEr(Shang)theChuZi No.2661)civiljudgmenton20November2016:thedecisiontosupportTKS,andtheSHHJshallimmediatelystoptheinfringement withintendaysafterthejudgmentofthecourtiseffective,stoptheconstructionandrestoretheoriginalappearanceofthesite. SHLXandSHHJarenotsatisfiedwiththeverdict,andappealtotheShanghaiSecondIntermediatePeople'sCourt.ShanghaiSecond IntermediatePeople'sCourtmadetherulingby(2016)Shanghai02MinZhongNo.10426on12January2017:dismissedtheSHLX appealtomaintaintheShanghaiJiadingDistrictPeople'sCourtontheTKSandSHLXleasecontract(2015)JiaMinSan(Min)the ChuZiNo.1640civiljudgment;asofthedateofthisreport,TKSandSHHJdisputeisundertrial.
（2） AsMTN Products,Inc./Water Solutions(HongKong)Ltd ("MTN/WSL") didnotpay therelevant payment intimeand fulfilltheorderaccordingtothecontract,thesubsidiaryoftheCompany,TsannKuen(Zhangzhou)EnterpriseCo.,Ltd.submittedthe indictment totheSUPERIORCOURTOF CALIFORNIACOUNTYOF LOSANGELES onNovember 232017sued MTN /WSL for payment of USD707,522.92 and USD1,402,940 for reserve losses, totaling USD2,110,462.92.As of the date of thisreport, the caseisstillpending.
（3）AsPhilipsLighting(China)InvestmentCo.,Ltd.("PhilipsLighting")didnotpaytherelevantpaymentinaccordancewiththe relevant agreement, the Company's subsidiary TsannKuen (Zhangzhou) Enterprise Co., Ltd., submitted the indictment on 23
November 2016toLonghai City People's Court, requestthepayment of CNY2,499,658.4.As of thedateof thisreport, thecase is
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
stillpending.
（4）TSANNKUEN(CHINA)ENTERPRISECO.,LTD.(therefore"TKC")andTianYuan(Xiamen)AssetManagementCo.,Ltd. (therefore"Tianyuan") signedthe"Land LeaseContract (Northwest Corner)"and“HousingLease Contract (NorthBuilding)"on 26 June2013,signedthe"LandLeaseContract(southeastcorner)","HousingLeaseContract(HuarongRoad23)"(partofthehouse)on 29July2013.TKCleasedthepartofthelandandhouseonXinglongRoad88toTianyuanforbusinessactivities,partofthesiteand housingleasedtoTianYuancompanyforbusinessactivities.
AsTianyuan didnot pay therent in accordancewith thecontract in time and unauthorized useoftheleased property,TKC filed a lawsuitinXiamenHuliDistrictPeople'sCourttopaytherelevantrent.Asofthedateofthisreport,thecaseisstillpending. III Commitments of theCompany’s actual controller, shareholders, related parties and acquirer, as well as the Company and other commitment makers, unfulfilled in this reporting period
√Applicable□Notapplicable
||||||||
|-|-|-|-|-|-|-|
|Commitment|Commitmentmaker|Commitmenttype|Contents|Timeofmakingcommitment|Periodofcommitment|Fulfillment|
|Commitmentonsharereform|||||||
|Commitment in the acquisitionreport or the report on equitychanges|||||||
|Commitments made upon the assetsreplacement|||||||
|Commitments made upon firstissuanceorrefinance|||||||
|Commitmentonequityincentive|||||||
|Other commitments made tominorityshareholders|FILLMANINVESTMENTSLIMITED|Commitmentonshareholdingincrease|Based on the confidence onthe continuous and stabledevelopment of theCompany, it committed toincrease the shareholding ifthe Company’s stock pricelower than HKD2.40 pershare after theimplementation of theshares contraction andtrading resumption, and itwould increase no morethan 2% shares (i.e. 3.7078million shares) of the totalshares issued by theCompany within one yearsince the date of initialshareholding increase. If theplan on increasing holding2%sharesofthetotalsharesis completed, if the stockprice hasn’t reached thetarget price, it will performrelevant approvalprocedures, and propose toCSRC on continuous|28 Dec.2012|Within oneyear sincethe date ofinitialshareholdingincrease|TheCompany’sstocksresumedtrading on 31Dec. 2012, butthe Company’sstock pricehasn’t met thecondition forshareholdingincrease sincethe date oftradingresumption,FILLMANInvestmentLimited hasn’timplementedtheshareholdingincreaseplan.|

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|||implementation ofshareholding increase byexemptionofoffering.|
|Executedontimeornot|Yes||
|The specific reasons and next workplanshouldbeexplainedindetailifthere are any commitmentsunfulfilledinthisreportingperiod|No||

Nosuchcasesinthereportingperiod.
IVOperating result forecastforJanuary-June2017
ForecastofapossibledeficitorconsiderableYoYchangeintheaccumulativenetprofitmadeduringtheperiodfromthebeginning oftheyeartotheendofthenextreportingperiod,aswellasexplanationofwhy:
□Applicable√Notapplicable
V Securities investments
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
VI Investments inderivative financialinstruments
□Applicable√Notapplicable
VII Visits paid to the Company in the Reporting Period for purposes of research, communication, interview, etc.
√Applicable□Notapplicable
|||||
|-|-|-|-|
|Dateofvisit|Wayofvisit|Typeofvisitor|Indextomaininquiryinformation|
|2017-02-14|Telephonecommunication|Individual|InquirythereformofBshare|
|2017-03-29|Telephonecommunication|Individual|InquirythereformofBshare|

VIII Illegal provisionofguarantees forexternal parties
□Applicable√Notapplicable
IX Occupation of theCompany’s funds by the controlling shareholder or its related parties
fornon-operatingpurposes
□Applicable√Notapplicable
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
Section IV Financial Statements
I Financialstatements
1.Consolidatedbalancesheet
PreparedbyTSANNKUEN(CHINA)ENTERPRISECO.,LTD.
Unit:RMB
||||
|-|-|-|
|Item|Closingamount|Openingamount|
|Currentassets:|||
|Monetaryfunds|596,497,341.54|749,497,115.33|
|Settlementreserves|||
|Lendingstobanksandotherfinancialinstitutions|||
|Financial assets measured at fair value with fair value changes included intheprofitandlossfortheReportingPeriod|||
|Derivativefinancialassets|||
|Notesreceivable|1,431,394.60|1,341,076.70|
|Accountsreceivable|226,660,388.19|273,086,616.38|
|Accountspaidinadvance|7,056,914.13|6,964,904.97|
|Premiumsreceivable|||
|Reinsurancepremiumsreceivable|||
|Receivablereinsurancecontractreserves|||
|Interestreceivable|657,962.20|5,519.56|
|Dividendsreceivable|0|0|
|Otheraccountsreceivable|31,881,457.68|40,381,756.08|
|Financialassetspurchasedunderagreementtoresell|||
|Inventories|176,145,818.10|223,569,121.90|
|Assetsheldforsale|||
|Non-currentassetsduewithinoneyear|||
|Othercurrentassets|301,329,722.22|139,354,484.01|
|Totalcurrentassets|1,341,660,998.66|1,434,200,594.93|
|Non-currentassets:|||
|Loansandadvancestocustomers|||
|Available-for-salefinancialassets|40,000.00|40,000.00|
|Held-to-maturityinvestments|||
|Long-termaccountsreceivable|||
|Long-termequityinvestments|||
|Investmentproperty|41,561,417.60|42,158,120.51|

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|Closingamount|Openingamount|
|Fixedassets|172,474,479.19|174,529,010.36|
|Constructioninprogress|400,542.52|269,633.08|
|Engineeringmaterials|||
|Disposaloffixedassets|||
|Productivelivingassets|||
|Oil-gasassets|||
|Intangibleassets|25,341,401.33|23,840,277.12|
|R&Dexpense|||
|Goodwill|||
|Long-termdeferredexpenses|3,774,425.54|4,142,242.19|
|Deferredincometaxassets|16,472,991.64|17,104,853.57|
|Othernon-currentassets|862,311.27|1,248,273.23|
|Totalnon-currentassets|260,927,569.09|263,332,410.06|
|Totalassets|1,602,588,567.75|1,697,533,004.99|
|Currentliabilities:|||
|Short-termborrowings|25,113,452.00||
|BorrowingsfromtheCentralBank|||
|Moneydepositsacceptedandinter-bankdeposits|||
|Loansfrombanksandotherfinancialinstitutions|||
|FinancialliabilitiesmeasuredatfairvaluewithfairvaluechangesincludedintheprofitandlossfortheReportingPeriod|||
|Derivativefinancialliabilities|||
|Notespayable|13,054,224.84|23,251,704.93|
|Accountspayable|486,639,219.70|589,418,458.93|
|Accountsreceivedinadvance|13,174,393.00|11,187,023.96|
|Financialassetssoldforrepurchase|||
|Handlingchargesandcommissionspayable|||
|Payrollpayable|36,248,702.09|45,671,498.70|
|Taxesandfarespayable|8,040,623.71|16,965,068.11|
|Interestpayable|5,584.36||
|Dividendspayable|||
|Otheraccountspayable|69,366,360.55|58,411,663.19|
|Reinsurancepremiumspayable|||
|Insurancecontractreserves|||
|Payablesforactingtradingofsecurities|||
|Payablesforactingunderwritingofsecurities|||
|Liabilitiesheldforsale|||

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|Closingamount|Openingamount|
|Non-currentliabilitiesduewithinoneyear|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|651,642,560.25|744,905,417.82|
|Non-currentliabilities:|||
|Long-termborrowings|||
|Bondspayable|||
|Ofwhich:Preferenceshares|||
|Perpetualbonds|||
|Long-termaccountspayable|||
|Long-termpayrollpayable|187,928.74|187,928.74|
|Specialpayables|||
|Estimatedliabilities|||
|Deferredincome|||
|Deferredincometaxliabilities|757,646.03|761,461.43|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|945,574.77|949,390.17|
|Totalliabilities|652,588,135.02|745,854,807.99|
|Owners’equity:|||
|Sharecapital|185,391,680.00|185,391,680.00|
|Otherequityinstruments|||
|Ofwhich:Preferenceshares|||
|Perpetualbonds|||
|Capitalreserves|296,808,965.79|296,808,965.79|
|Less:Treasurystock|||
|Othercompositeincome|8,650,766.89|8,491,902.45|
|Specialreserves|||
|Surplusreserves|29,946,218.17|29,946,218.17|
|Provisionsforgeneralrisks|||
|Retainedprofit|97,018,405.56|90,217,504.90|
|TotalequityattributabletoownersoftheCompany|617,816,036.41|610,856,271.31|
|Minorityinterests|332,184,396.32|340,821,925.69|
|Totalowners’equity|950,000,432.73|951,678,197.00|
|Totalliabilitiesandowners’equity|1,602,588,567.75|1,697,533,004.99|

 Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
2.BalancesheetoftheCompany
Unit:RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|CurrentAssets:|||
|Monetaryfunds|32,336,061.24|6,668,219.24|
|Financial assets measured at fair value with fair value changesincludedintheprofitandlossfortheReportingPeriod|||
|Derivativefinancialassets|||
|Notesreceivable|1,431,394.60|1,341,076.70|
|Accountsreceivable|15,088,091.62|30,084,632.38|
|Accountspaidinadvance|327,764.32|224,212.39|
|Interestreceivable|||
|Dividendsreceivable|||
|Otheraccountsreceivable|444,963.00|539,684.23|
|Inventories|11,781,559.47|13,862,241.50|
|Assetsheldforsale|||
|Non-currentassetsduewithinoneyear|||
|Othercurrentassets|465,034.74|404,776.38|
|Totalcurrentassets|61,874,868.99|53,124,842.82|
|Non-currentassets:|||
|Available-for-salefinancialassets|40,000.00|40,000.00|
|Held-to-maturityinvestments|||
|Long-termaccountsreceivable|||
|Long-termequityinvestments|922,914,701.56|922,914,701.56|
|Investmentproperty|34,940,863.73|35,720,961.41|
|Fixedassets|1,884,173.89|1,985,546.98|
|Constructioninprogress|92,135.92||
|Engineeringmaterials|||
|Disposaloffixedassets|||
|Productivelivingassets|||
|Oil-gasassets|||
|Intangibleassets|76,499.99|83,249.99|
|R&Dexpense|||
|Goodwill|||
|Long-termdeferredexpenses|56,866.39|69,866.41|
|Deferredincometaxassets|1,644,691.21|1,910,906.98|
|Othernon-currentassets|||
|Totalnon-currentassets|961,649,932.69|962,725,233.33|
|Totalassets|1,023,524,801.68|1,015,850,076.15|
|Currentliabilities:|||
|Short-termborrowings|||
|Financial liabilities measured at fair value with fair value changesincludedintheprofitandlossfortheReportingPeriod|||
|Derivativefinancialliabilities|||
|Notespayable|||
|Accountspayable|59,737,978.74|83,598,309.18|
|Accountsreceivedinadvance|2,692,385.88|930,623.95|
|Payrollpayable|1,424,486.45|2,912,637.07|
|Taxesandfarespayable|531,594.16|647,392.73|
|Interestpayable|||
|Dividendspayable|||
|Otheraccountspayable|298,661,693.99|298,567,356.74|
|Liabilitiesheldforsale|||
|Non-currentliabilitiesduewithinoneyear|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|363,048,139.22|386,656,319.67|
|Non-currentliabilities:|||
|Long-termborrowings|||
|Bondspayable|||
|Ofwhich:Preferenceshares|||
|Perpetualbonds|||
|Long-termpayables|||
|Long-termpayrollpayables|||

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Specialpayables|||
|Estimatedliabilities|||
|Deferredincome|||
|Deferredincometaxliabilities|||
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|0|0|
|Totalliabilities|363,048,139.22|386,656,319.67|
|Owners’equity:|||
|Sharecapital|185,391,680.00|185,391,680.00|
|Otherequityinstruments|||
|Ofwhich:Preferenceshares|||
|Perpetualbonds|||
|Capitalreserves|271,490,289.82|271,490,289.82|
|Less:Treasurystock|||
|Othercompositeincome|||
|Specialreserves|||
|Surplusreserves|29,946,218.17|29,946,218.17|
|Retainedprofit|173,648,474.47|142,365,568.49|
|Totalowners’equity|660,476,662.46|629,193,756.48|
|Totalliabilitiesandowners’equity|1,023,524,801.68|1,015,850,076.15|

 Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
3.Consolidatedincomestatement
Unit:RMB
||||
|-|-|-|
|Item|January-March2017|January-March2016|
|1.Operatingrevenues|454,378,577.36|400,158,372.95|
|Including:Salesincome|454,378,577.36|400,158,372.95|
|Interestincome|||
|Premiumincome|||
|Handlingchargeandcommissionincome|||
|2.Totaloperatingcosts|444,388,401.44|395,648,344.39|
|Including:Costofsales|387,349,957.02|332,766,010.74|
|Interestexpenses|||
|Handlingchargeandcommissionexpenses|||
|Surrenders|||
|Netclaimspaid|||
|Netamountprovidedasinsurancecontractreserves|||
|Expenditureonpolicydividends|||
|Reinsurancepremium|||
|Taxesandsurtaxes|3,337,174.29|2,421,468.97|
|Sellingexpenses|17,801,039.57|21,222,925.10|
|Administrativeexpenses|35,342,935.42|38,410,274.39|
|Financialcosts|1,738,365.97|-259,634.93|
|Assetimpairmentloss|-1,181,070.83|1,087,300.12|
|Add:Profit/lossonfairvaluechanges(“-”meansloss)||5,095,350.00|
|Profit/lossoninvestment(“-”meansloss)|213,698.63|-1,003,403.59|
|Including:Shareofprofitinassociatesandjointventures|||
|Foreignexchangeprofit(“-”meansloss)|||
|3.Operatingprofit(“-”meansloss)|10,203,874.55|8,601,974.97|
|Add:Non-operatingincome|1,689,529.16|1,204,888.70|
|Including:Profitondisposalofnon-currentassets|172,996.23|283,856.27|
|Less:Non-operatingexpense|56,900.45|7,548.59|
|Including:Lossondisposalofnon-currentassets|6,900.45|1,087.72|
|4.Totalprofit(“-”meansloss)|11,836,503.26|9,799,315.08|
|Less:Corporateincometax|3,622,669.95|1,860,460.96|
|5.Netprofit(“-”meansloss)|8,213,833.31|7,938,854.12|
|NetprofitattributabletoownersoftheCompany|6,800,900.65|6,272,704.45|
|Minorityshareholders’income|1,412,932.66|1,666,149.67|
|6.After-taxnetamountofothercompositeincome|211,819.25|-270,466.96|
|After-tax net amount of other composite income attributable to ownersoftheCompany|158,864.44|-202,850.22|

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|January-March2017|January-March2016|
|6.1 Other composite income that will not be reclassified into profitandloss|15,614.61||
|6.1.1Changesinnetliabilitiesorassetswithadefinedbenefitplanuponre-measurement|15,614.61||
|6.1.2Enjoyable sharein other comprehensiveincome in investeesthatcannotbereclassifiedintoprofitandlossundertheequitymethod|||
|6.2 Other composite income that will be reclassified into profit andloss|143,249.83|-202,850.22|
|6.2.1 Enjoyable share in other composite income in investees thatwillbereclassifiedintoprofitandlossundertheequitymethod|||
|6.2.2 Profit and loss on fair value changes of available-for-salefinancialassets|||
|6.2.3 Profit andloss onreclassifying held-to-maturityinvestmentsintoavailable-for-salefinancialassets|||
|6.2.4Effectivehedgingprofitandlossoncashflow|||
|6.2.5Foreign-currencyfinancialstatementtranslationdifference|143,249.83|-202,850.22|
|6.2.6Other|||
|After-taxnetamountofothercompositeincomeattributabletominorityshareholders|52,954.81|-67,616.74|
|7.Totalcompositeincome|8,425,652.56|7,668,387.16|
|AttributabletoownersoftheCompany|6,959,765.09|6,069,854.23|
|Attributabletominorityshareholders|1,465,887.47|1,598,532.93|
|8.Earningspershare|||
|8.1Basicearningspershare|0.04|0.03|
|8.2Dilutedearningspershare|0.04|0.03|

 WherebusinessmergersunderthesamecontroloccurredintheReportingPeriod,netprofitachievedbythemergedpartiesbefore thebusinessmergerswasRMB0.00,withthecorrespondingamountforthesameperiodoflastyearbeingRMB-2,204,397.97. Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
4.IncomestatementoftheCompany
Unit:RMB
||||
|-|-|-|
|Item|January-March2017|January-March2016|
|1.Operatingrevenues|21,002,892.18|21,271,402.42|
|Less:Operatingcosts|15,142,772.24|14,745,029.67|
|Taxesandsurtaxes|729,157.30|291,003.83|
|Sellingexpenses|2,156,628.15|2,306,282.89|
|Administrativeexpenses|2,943,317.20|3,168,759.81|
|Financialcosts|-15,902.72|-14,206.99|
|Assetimpairmentloss|-1,150,303.33|472,593.00|
|Add:profit/lossonfairvaluechanges(“-”meansloss)|||
|Profit/lossoninvestment(“-”meansloss)|30,310,250.78|107,582,142.80|
|Including:Incomefrominvestmentonassociatesandjointventures|||
|2.Operatingprofit(“-”meansloss)|31,507,474.12|107,884,083.01|
|Add:Non-operatingincome|41,647.63|115,892.49|
|Including:Profitondisposalofnon-currentassets|||
|Less:Non-operatingexpense|||
|Including:Lossondisposalofnon-currentassets|||
|3.Totalprofit(“-”meansloss)|31,549,121.75|107,999,975.50|
|Less:Corporateincometax|266,215.77|16,198,205.71|
|4.Netprofit(“-”meansloss)|31,282,905.98|91,801,769.79|
|5.After-taxnetamountofothercompositeincome|||
|5.1Othercompositeincomethatwillnotbereclassifiedintoprofitandloss|||
|5.1.1 Changes in net liabilities or assets with a defined benefit planuponre-measurement|||
|5.1.2 Enjoyable share in other composite income in investees thatcannotbereclassifiedintoprofitandlossundertheequitymethod|||
|5.2Othercompositeincomethatwillbereclassifiedintoprofitandloss|||
|5.2.1 Enjoyable share in other composite income in investees thatwillbereclassifiedintoprofitandlossundertheequitymethod|||
|5.2.2 Profit and loss on fair value changes of available-for-salefinancialassets|||
|5.2.3 Profit and loss on reclassifying held-to-maturity investmentsintoavailable-for-salefinancialassets|||
|5.2.4Effectivehedgingprofitandlossoncashflow|||
|5.2.5Foreign-currencyfinancialstatementtranslationdifference|||
|5.2.6Other|||
|6.Totalcompositeincome|31,282,905.98|91,801,769.79|

Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
5.Consolidatedcashflowstatement
Unit:RMB
||||
|-|-|-|
|Item|January-March2017|January-March2016|
|1.Operatingcashflow:|||
|Cashreceivedfromsaleofcommoditiesandrenderingofservice|491,298,063.61|446,984,396.18|
|Netincreaseinmoneydepositsfromcustomersandinter-bankplacements|||
|NetincreaseinloansfromtheCentralBank|||
|Netincreaseinfundsborrowedfromotherfinancialinstitutions|||
|Cashreceivedfrompremiumoforiginalinsurancecontracts|||
|Netcashreceivedfromreinsurancebusiness|||
|Netincreaseindepositsofpolicyholdersandinvestmentfund|||
|Net increase in disposal of financial assets measured at fair value with fairvaluechangesincludedintheprofitandlossfortheReportingPeriod|||
|Cashreceivedfrominterest,handlingchargesandcommissions|||
|Netincreaseinloansfrombanksandotherfinancialinstitutions|||
|Netincreaseinfundsinrepurchasebusiness|||
|Taxrefundsreceived|50,899,572.11|60,112,623.06|
|Otheroperatingcashreceived|19,055,478.67|15,979,818.57|
|Subtotalofoperatingcashinflow|561,253,114.39|523,076,837.81|
|Cashpaidforgoodsandservices|421,536,510.47|433,353,207.67|
|Netincreaseinloansandadvancestocustomers|||
|Net increase in funds deposited in the Central Bank and inter-bankplacements|||
|Cashforpayingclaimsoforiginalinsurancecontracts|||
|Cashforpayinginterest,handlingchargesandcommissions|||
|Cashforpayingpolicydividends|||
|Cashpaidtoandforemployees|71,049,721.91|69,738,370.16|
|Taxesandfarespaid|16,287,373.30|7,057,054.50|
|Othercashpaymentrelatingtooperatingactivities|49,210,053.68|34,673,120.61|
|Subtotalofoperatingcashoutflow|558,083,659.36|544,821,752.94|
|Netoperatingcashflow|3,169,455.03|-21,744,915.13|
|2.Investmentcashflow:|||
|Cashreceivedfromretractionofinvestments|32,729,887.43|-1,011,877.61|
|Cashreceivedfromreturnoninvestments|229,280.83||
|Net cash received from disposal of fixed assets, intangible assets and otherlong-termassets|1,882,588.00|4,916,418.16|
|Netcashreceivedfromdisposalofsubsidiariesorotherbusinessunits|||
|Othercashreceivedrelatingtoinvestmentactivities|9,819,374.14|55,400,000.00|
|Subtotalofinvestmentcashinflow|44,661,130.40|59,304,540.55|
|Cash paid to acquire fixed assets, intangible assets and other long-termassets|18,968,169.49|17,423,362.34|

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|January-March2017|January-March2016|
|Cashpaidforinvestment|192,047,415.57|156,257,966.06|
|Netincreaseinpledgedloans|||
|Netcashpaidtoacquiresubsidiariesandotherbusinessunits|||
|Othercashpaymentsrelatingtoinvestmentactivities|134,062,797.79|65,800,000.00|
|Subtotalofinvestmentcashoutflow|345,078,382.85|239,481,328.40|
|Netinvestmentcashflow|-300,417,252.45|-180,176,787.85|
|3.Financingcashflow:|||
|Cashreceivedfromcapitalcontributions|||
|Including: Cash received from minority shareholder investments bysubsidiaries|||
|Cashreceivedasborrowings|25,036,648.00|2,202,002.00|
|Cashreceivedfromissuanceofbonds|||
|Otherfinancingcashreceived|6,899,282.43||
|Subtotaloffinancingcashinflow|31,935,930.43|2,202,002.00|
|Repaymentofborrowings|||
|Cashpaidforinterestexpensesanddistributionofdividendsorprofit|10,103,416.93|13,824,332.69|
|Including: dividends or profit paid by subsidiaries to minorityshareholders|10,103,416.93|13,824,332.69|
|Othercashpaymentsrelatingtofinancingactivities|||
|Sub-totaloffinancingcashoutflow|10,103,416.93|13,824,332.69|
|Netfinancingcashflow|21,832,513.50|-11,622,330.69|
|4.Effectofforeignexchangeratechangesoncashandcashequivalents|-2,285,644.08|-1,074,884.20|
|5.Netincreaseincashandcashequivalents|-277,700,928.00|-214,618,917.87|
|Add:Openingbalanceofcashandcashequivalents|738,195,729.53|675,824,861.29|
|6.Closingbalanceofcashandcashequivalents|460,494,801.53|461,205,943.42|

 Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing
ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
6.CashflowstatementoftheCompany
Unit:RMB
||||
|-|-|-|
|Item|January-March2017|January-March2016|
|1.Operatingcashflow:|||
|Cashreceivedfromsaleofcommoditiesandrenderingofservice|35,261,061.42|34,011,853.31|
|Taxrefundsreceived|||
|Otheroperatingcashreceived|14,251,817.18|12,639,614.14|
|Subtotalofoperatingcashinflow|49,512,878.60|46,651,467.45|
|Cashpaidforgoodsandservices|38,935,020.23|28,594,423.79|
|Cashpaidtoandforemployees|4,595,972.16|4,962,672.42|
|Taxesandfarespaid|1,423,553.61|1,606,283.12|
|Otheroperatingcashpayments|9,177,813.37|97,383,180.93|
|Subtotalofoperatingcashoutflow|54,132,359.37|132,546,560.26|
|Netoperatingcashflow|-4,619,480.77|-85,895,092.81|
|2.Investmentcashflow:|||
|Cashreceivedfromretractionofinvestments||65,000,000.00|
|Cashreceivedfromreturnoninvestments|30,310,250.78|41,472,998.07|
|Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets|||
|Net cash received from disposal of subsidiaries or other businessunits|||
|Othercashreceivedrelatingtoinvestmentactivities|||
|Subtotalofinvestmentcashinflow|30,310,250.78|106,472,998.07|
|Cash paid to acquire fixed assets, intangible assets and otherlong-termassets|22,950.00|13,798.00|
|Cashpaidforinvestment||1,000,000.00|
|Netcashpaidtoacquiresubsidiariesandotherbusinessunits|||
|Otherinvestmentcashpayments|||
|Subtotalofinvestmentcashoutflow|22,950.00|1,013,798.00|
|Netinvestmentcashflow|30,287,300.78|105,459,200.07|
|3.Financingcashflow:|||
|Cashreceivedfromcapitalcontributions|||
|Cashreceivedasborrowings|||
|Cashreceivedfromissuanceofbonds|||
|Otherfinancingcashreceived|||
|Subtotaloffinancingcashinflow|||
|Repaymentofborrowings|||
|Cash paid for interest expenses and distribution of dividends orprofit|||
|Othercashpaymentsrelatingtofinancingactivities|||

ReportfortheFirstQuarterof2017ofTsannKuen(China)EnterpriseCo.,Ltd.
||||
|-|-|-|
|Item|January-March2017|January-March2016|
|Sub-totaloffinancingcashoutflow|0|0|
|Netfinancingcashflow|0|0|
|4.Effectofforeignexchangeratechangesoncashandcashequivalents|21.99|-71.26|
|5.Netincreaseincashandcashequivalents|25,667,842.00|19,564,036.00|
|Add:Openingbalanceofcashandcashequivalents|6,668,219.24|7,750,025.58|
|6.Closingbalanceofcashandcashequivalents|32,336,061.24|27,314,061.58|

 Legalrepresentative:PanZhirong Chiefoftheaccountingwork:FengZhiqing Chiefoftheaccountingorgan:FengZhiqing IIAuditor’s report
IsthisReportaudited?
□Yes√No
ThisReportisnotaudited.