SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.THIRD QUARTERLY REPORT 2020
(Announcement No. 2020-49)
October 2020
Part I Important NotesThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of ShenZhen Properties & Resources Development(Group) Ltd. (together with its consolidated subsidiaries, the “Company”, except where thecontext otherwise requires) hereby guarantee the factuality, accuracy and completeness of thecontents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head offinancial affairs, and Liu Qiang, head of the Company’s financial department (equivalent tofinancial manager) hereby guarantee that the financial statements carried in this Report arefactual, accurate and complete.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
Part II Key Corporate InformationI Key Consolidated Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for retrospective restatement:
Business combination under common control
| 30 September 2020 | 31 December 2019 | Change (%) | ||||||
| Before | After | After | ||||||
| Total assets (RMB) | 12,215,328,316.87 | 10,772,491,740.53 | 10,772,491,740.53 | 13.39% | ||||
| Equity attributable to the listed company’s shareholders (RMB) | 3,128,371,521.14 | 3,147,949,009.38 | 3,147,949,009.38 | -0.62% | ||||
| Q3 2020 | Q3 2019 | YoY change (%) | Q1-Q3 2020 | Q1-Q3 2019 | YoY change (%) | |||
| Before | After | After | Before | After | After | |||
| Operating revenue (RMB) | 332,619,949.47 | 246,562,586.92 | 413,888,412.11 | -19.64% | 1,753,697,717.30 | 1,001,952,666.88 | 1,479,369,294.41 | 18.54% |
| Net profit attributable to the listed company’s shareholders (RMB) | -19,555,182.58 | -689,810.21 | 22,644,003.48 | -186.36% | 192,412,552.18 | 103,059,587.95 | 178,566,428.88 | 7.75% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | -19,618,268.67 | -1,104,487.82 | 14,841,173.92 | -232.19% | 190,191,011.43 | 102,581,697.47 | 166,967,234.95 | 13.91% |
| Net cash generated from/used in operating activities (RMB) | 1,170,415,181.72 | 994,222,491.29 | 1,062,466,646.03 | 10.16% | -452,766,957.18 | 534,270,254.31 | 665,778,634.33 | -168.01% |
| Basic earnings per share (RMB/share) | -0.0328 | -0.0012 | 0.0380 | -186.32% | 0.3229 | 0.1729 | 0.2996 | 7.78% |
| Diluted earnings per share (RMB/share) | -0.0328 | -0.0012 | 0.0380 | -186.32% | 0.3229 | 0.1729 | 0.2996 | 7.78% |
| Weighted average return on equity (%) | -0.62% | -0.02% | 0.59% | -1.21% | 5.72% | 3.13% | 4.85% | 0.87% |
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1-Q3 2020 | Note |
| Gain or loss on disposal of non-current assets (inclusive of | -17,518.68 | Scrapping disposal of |
| impairment allowance write-offs) | miscellaneous assets | |
| Government subsidies recognized in the current period, except for those acquired in the ordinary course of business or granted at certain quotas or amounts according to the government’s unified standards | 3,702,996.03 | Pandemic subsidies received |
| Non-operating income and expense other than above | -1,961,169.08 | |
| Less: Income tax effects | -494,671.94 | |
| Non-controlling interests effects (net of tax) | -2,560.54 | |
| Total | 2,221,540.75 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/LossItems:
□ Applicable √ Not applicable
No such cases for the Reporting Period.II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2020
1. Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 55,552 | Number of preferred shareholders with resumed voting rights at the period-end (if any) | 0 | ||||
| Top 10 shareholders | |||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | ||
| Status | Shares | ||||||
| Shenzhen Investment Holdings Corporation | State-owned corporation | 56.96% | 339,452,527 | 3,326 | |||
| China Orient Asset Management Co., Ltd. | State-owned corporation | 5.87% | 34,970,000 | ||||
| Industrial and Commercial Bank of China－Fullgoal TianHui Selected Growth Hybrid Securities Investment Fund (LOF) | Other | 1.85% | 11,000,000 | ||||
| Shenzhen Duty-Free Commodity Enterprises Co., Ltd. | Domestic non-state-owned corporation | 0.29% | 1,730,300 | 1,730,300 | |||
| Yang Yaochu | Domestic individual | 0.25% | 1,500,384 | ||||
| Duan Shaoteng | Domestic individual | 0.23% | 1,355,555 | ||||
| Lin Qiangyou | Domestic individual | 0.22% | 1,332,200 | ||||
| Industrial and Commercial Bank of China－Fullgoal Growth Selected 3-year Fixed Open and Flexible Allocation Hybrid Securities Investment Fund | Other | 0.19% | 1,158,742 | ||||
| Mai Furong | Domestic individual | 0.18% | 1,049,200 | ||||
| Bank of China－Manulife Teda High Development Innovation 6-month Holding Hybrid Securities Investment Fund | Other | 0.17% | 1,041,100 | ||||
| Top 10 unrestricted shareholders | |||||||
| Name of shareholder | Unrestricted shares held | Shares by class | |||||
| Class | Shares | ||||||
| Shenzhen Investment Holdings Corporation | 339,449,201 | RMB-denominated ordinary stock | 339,449,201 | ||||
| China Orient Asset Management Co., Ltd. | 34,970,000 | RMB-denominated ordinary stock | 34,970,000 | ||||
| Industrial and Commercial Bank of China－Fullgoal TianHui Selected Growth Hybrid Securities Investment Fund (LOF) | 11,000,000 | RMB-denominated ordinary stock | 11,000,000 | ||||
| Yang Yaochu | 1,500,384 | Domestically listed foreign stock | 1,500,384 | ||||
| Duan Shaoteng | 1,355,555 | RMB-denominated ordinary stock | 1,355,555 | ||||
| Lin Qiangyou | 1,332,200 | RMB-denominated ordinary stock | 1,332,200 | ||||
| Industrial and Commercial Bank of China－Fullgoal Growth Selected 3-year Fixed Open and Flexible Allocation Hybrid Securities Investment Fund | 1,158,742 | RMB-denominated ordinary stock | 1,158,742 | ||||
| Mai Furong | 1,049,200 | Domestically listed foreign stock | 1,049,200 | ||||
| Bank of China－Manulife Teda High Development | 1,041,100 | RMB-denominate | 1,041,100 | ||||
| Innovation 6-month Holding Hybrid Securities Investment Fund | d ordinary stock | ||
| He Simo | 1,011,750 | Domestically listed foreign stock | 1,011,750 |
| Related or acting-in-concert parties among the shareholders above | The first largest shareholder, Shenzhen Investment Holding Corporation, is the actual controlling shareholder of the Company. And the Company does not know whether there are related parties or acting-in-concert parties among the other 9 shareholders. | ||
| Top 10 ordinary shareholders involved in securities margin trading (if any) | N/A | ||
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of theCompany conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
Part III Significant EventsI Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Investments in other equity instruments stood at RMB1,020,868.70 as at 30 September 2020, down 35.41% compared to 31December 2019, primarily driven by changes in fair value.
2. Other non-current assets stood at RMB27,378,395.82 as at 30 September 2020, up 481.04% compared to 31 December 2019,primarily driven by an increase in expenditure for acquisition of long-lived assets.
3. Contract liabilities stood at RMB1,694,826,977.08 as at 30 September 2020, up 144.14% compared to 31 December 2019,primarily driven by an increase in advances received in the pre-sale of residential units.
4. Taxes and levies payable stood at RMB1,337,668,707.08 as at 30 September 2020, down 48.52% compared to 31 December 2019,primarily driven by the payment of land value added tax on certain projects.
5. The current portion of non-current liabilities stood at RMB755,339,116.67 as at 30 September 2020, up 19163.78% compared to31 December 2019, primarily driven by an increase in bank borrowings.
6. Long-term borrowings stood at RMB3,615,800,000.00 as at 30 September 2020, up 64.82% compared to 31 December 2019,primarily driven by an increase in bank loans.
7. Provisions stood at RMB5,712,799.92 as at 30 September 2020, up 96.77% compared to 31 December 2019, primarily driven byprovision made according to court judgment.
8. Other comprehensive income stood at RMB-135,938.74 as at 30 September 2020, down 94.96% compared to 31 December 2019,primarily driven by the translation of foreign currency-denominated financial statements and changes in the fair value of other equityinstruments.
9. Minority interests stood at RMB68,535,138.32 as at 30 September 2020, down 42.22% compared to 31 December 2019, primarilydriven by the loss attributable to the minority interests.
10. Taxes and levies stood at RMB412,829,423.52 during Q1~Q3 2020, up 191.19% compared to Q1~Q3 2019, primarily driven byan increase in the provision for land value added tax.
11. Selling expense stood at RMB22,942,832.34 during Q1~Q3 2020, down 47.24% compared to Q1~Q3 2019, primarily driven by adecrease in sales promotion and agent expense.
12. Other income stood at RMB4,850,559.92 during Q1~Q3 2020, up 119.18% compared to Q1~Q3 2019, primarily driven byover-deduction in the calculation of the taxable income amount in respect of input tax and the government’s job security subsidyreceived.
13. Credit impairment loss stood at RMB1,163,290.17 during Q1~Q3 2020, down 109.08% compared to Q1~Q3 2019, primarilydriven by a decrease in allowances for doubtful accounts.
14. Asset impairment loss stood at RMB1,832.91 during Q1~Q3 2020, down 100.15% compared to Q1~Q3 2019, primarily drivenby a decrease in inventory valuation allowances.
15. Return on investment stood at RMB193,069.98 during Q1~Q3 2020, down 91.97% compared to Q1~Q3 2019, primarily drivenby a decrease in returns on investments in joint ventures.
16. Non-operating income stood at RMB4,904,450.96 during Q1~Q3 2020, down 73.56% compared to Q1~Q3 2019, primarilydriven by Q1~Q3 2019 seeing other payables where no payment was needed.
17. Net cash generated from/used in operating activities stood at RMB-452,766,957.18 during Q1~Q3 2020, compared to the amountof RMB665,778,634.33 during Q1~Q3 2019, primarily driven by an increase in taxes and levies paid.
18. Net cash generated from/used in investing activities stood at RMB-494,199,797.27 during Q1~Q3 2020, compared to the amountof RMB-38,551,818.08 during Q1~Q3 2019, primarily driven by the payment for the acquisition of interest in other company.
19. Net cash generated from/used in financing activities stood at RMB1,817,536,375.20 during Q1~Q3 2020, compared to theamount of RMB-482,720,306.16 during Q1~Q3 2019, primarily driven by additional bank loan.
II Progress, Influence and Solutions in respect of Significant Events
√ Applicable □ Not applicable
1. The Company disclosed an announcement on the media designated for information disclosure dated 18 July 2020 that theCompany’s controlling shareholder Shenzhen Investment Holdings Co., Ltd. (“SIHC”) intended to reduce no more than 11,919,581shares in the Company by way of centralized bidding during the six months immediately after 15 trading days of the date of theannouncement. During the period from 25 August 2020 to 4 September 2020, SIHC reduced a total of 5,959,696 shares in theCompany (representing over half of its shareholding) by way of centralized bidding, and the particulars were disclosed on the mediadesignated for information disclosure dated 5 September 2020.
2. The Company disclosed an announcement on the media designated for information disclosure dated 15 August 2020 that ChinaOrient Asset Management Co., Ltd., a shareholder holding over 5% shares in the Company, intended to reduce no more than5,959,700 shares in the Company by way of centralized bidding during the three months immediately after 15 trading days of thedate of the announcement.
3. In order to deepen cooperation with key customers abroad, explore cutting-edge technology and enhance international presence,the Company’s wholly-owned subsidiary Shenzhen International Trade Center Property Management Co., Ltd. (ITC PropertyManagement) intended to establish a wholly-owned subsidiary in China Vietnam Economic & Trade Cooperation Zone in Hai Phong,Vietnam. This matter was approved at the 18
th
Meeting of the 9
th Board of Directors and the 2
nd
Extraordinary General Meeting of2020 respectively, and was disclosed on the media designated for information disclosure dated 23 September 2020.
| Summary of the significant event | Date of disclosure | Index to disclosure |
| The Company’s controlling shareholder to reduce shareholding | 18 July 2020 | Announcement No. 2020-33 on the Company’s Controlling Shareholder to Reduce Shareholding on www.cninfo.com.cn |
| 5 September 2020 | Announcement No. 2020-41 on Progress of Shareholding Reduction by the Company’s Controlling Shareholder (Over Half of Its Reduction Plan) | |
| A shareholder holding over 5% shares in the Company to reduce shareholding | 15 August 2020 | Announcement No. 2020-34 on Shareholder Holding Over 5% Shares to Reduce Shareholding on www.cninfo.com.cn |
| Wholly-owned subsidiary to establish a wholly-owned subsidiary overseas | 23 September 2020 | Announcement No. 2020-43 on Wholly-owned Subsidiary to Establish a Wholly-Owned Subsidiary Overseas on |
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during theReporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV Financial Investments
1. Securities Investments
√ Applicable □ Not applicable
Unit: RMB
www.cninfo.com.cn
Type ofsecuritie
s
| Type of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement method | Opening carrying amount | Gain/loss on fair-value changes in the current period | Cumulative fair-value changes through equity | Purchased in the current period | Sold in the current period | Gain/loss in the current period | Closing carrying amount | Accounting title | Funding source |
| Domestic/overseas stock | 400016,420016 | Gintian A, Gintian B | 3,565,856.06 | Fair method | 1,580,475.86 | 0.00 | -569,080.59 | 0.00 | 0.00 | 9,473.43 | 1,020,868.70 | Other assets | Obtained in Gintian debt restructuring |
| Total | 3,565,856.06 | -- | 1,580,475.86 | 0.00 | -569,080.59 | 0.00 | 0.00 | 9,473.43 | 1,020,868.70 | -- | -- | ||
| Disclosure date of announcement on shareholders’ meeting’s consent for securities investment (if any) |
2. Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.V Progress of Projects Financed with Raised Funds
□□ Applicable √ Not applicable
VI 2020 Annual Operating Performance ForecastWarning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net profit, as well as explanation ofwhy:
□ Applicable √ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable √ Not applicable
VIII Cash Entrusted for Wealth Management
□ Applicable √ Not applicable
No such cases in the Reporting Period.IX Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.X Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Partiesfor Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Communications with the Investment Community such as Researches, Inquiries andInterviews during the Reporting Period
√ Applicable □ Not applicable
| Date | Place | Way of communication | Type of communication party | Communication party | Major discussion content and information provided | Index to main information communicated |
| 1 July 2020 | Company | In writing | Individual | Individual investor | Inquired of the disclosure progress of the interim report of the Company | N/A |
| 2 July 2020 | Company | In writing | Individual | Individual investor | Inquired of the semi-annual performance of the Company | N/A |
| 2 July 2020 | Company | In writing | Individual | Individual investor | Inquired of situations of the top 10 shareholders of the Company | N/A |
| 6 July 2020 | Company | In writing | Individual | Individual investor | Inquired of business plan of the Company | N/A |
| 6 July 2020 | Company | In writing | Individual | Individual investor | Inquired of the interim report of the Company | N/A |
| 6 July 2020 | Company | In writing | Individual | Individual investor | Inquired of business plan of the Company | N/A |
| 15 July 2020 | Company | In writing | Individual | Individual investor | Inquired of the ownership of partial property of the Company | N/A |
| 20 July 2020 | Company | By phone | Individual | Individual investor | Inquired of reduction of shareholding of major shareholders | N/A |
| 20 July 2020 | Company | By phone | Individual | Individual | Inquired of | N/A |
| investor | situations of the top 10 shareholders of the Company | |||||
| 23 July 2020 | Company | By phone | Individual | Individual investor | Inquired of business operation of the Company | N/A |
| 24 July 2020 | Company | In writing | Individual | Individual investor | Inquired whether the Sino-American Relations influence the operation of the Company | N/A |
| 27 July 2020 | Company | In writing | Individual | Individual investor | Inquired of the future direction of development of the Company | N/A |
| 28 July 2020 | Company | In writing | Individual | Individual investor | Inquired of the revitalization plan of the Renmin South business district | N/A |
| 17 August 2020 | Company | In writing | Individual | Individual investor | Inquired of partial projects and property services of the Company | N/A |
| 25 August 2020 | Company | By phone | Individual | Individual investor | Inquired of the reasons for falling share price of the Company | N/A |
| 28 August 2020 | Company | In writing | Individual | Individual investor | Inquired of the progress of reduction plan of controlled shareholders of the Company | N/A |
| 31 August 2020 | Company | In writing | Individual | Individual | Inquired of the | N/A |
| investor | property in partial ports and business districts | |||||
| 7 September 2020 | Company | In writing | Individual | Individual investor | Inquired of demolition progress of Bangling Project | N/A |
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Properties & Resources Development (Group) Ltd.
30 September 2020
Unit: RMB
| Item | 30 September 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 4,184,178,897.03 | 3,297,890,935.91 |
| Settlement reserve | ||
| Loans to other banks and financial institutions | ||
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 270,807,406.21 | 216,923,663.25 |
| Receivables financing | ||
| Prepayments | 83,909,066.96 | 69,546,774.17 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 802,481,422.46 | 917,981,165.74 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 5,450,892,937.29 | 4,913,510,876.66 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 47,194,968.48 | 42,500,585.94 |
| Total current assets | 10,839,464,698.43 | 9,458,354,001.67 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 45,269,192.70 | 45,076,122.72 |
| Investments in other equity instruments | 1,020,868.70 | 1,580,475.86 |
| Other non-current financial assets | ||
| Investment property | 484,591,184.38 | 503,323,428.61 |
| Fixed assets | 87,976,341.37 | 93,557,782.83 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 536,628.48 | 700,369.66 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 7,096,658.08 | 7,034,472.79 |
| Deferred income tax assets | 721,994,348.91 | 658,153,122.73 |
| Other non-current assets | 27,378,395.82 | 4,711,963.66 |
| Total non-current assets | 1,375,863,618.44 | 1,314,137,738.86 |
| Total assets | 12,215,328,316.87 | 10,772,491,740.53 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Borrowings from the central bank | ||
| Loans from other banks and financial institutions | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 515,001,982.80 | 577,689,139.10 |
| Advances from customers | 32,756,363.80 | 728,186,032.63 |
| Contract liabilities | 1,694,826,977.08 | 0.00 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and deposits from other banks and financial institutions | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 123,927,831.02 | 143,493,868.80 |
| Taxes and levies payable | 1,337,668,707.08 | 2,598,283,291.68 |
| Other payables | 831,718,150.19 | 1,149,104,928.85 |
| Including: Interest payable | 0.00 | 0.00 |
| Dividends payable | 12,202,676.04 | 12,202,676.04 |
| Fees and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 755,339,116.67 | 3,921,032.24 |
| Other current liabilities | ||
| Total current liabilities | 5,291,239,128.64 | 5,200,678,293.30 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 3,615,800,000.00 | 2,193,833,000.00 |
| Bonds payable | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | 5,712,799.92 | 2,903,327.87 |
| Deferred income | 316,883.94 | 341,259.63 |
| Deferred income tax liabilities | 3,821.08 | 3,821.08 |
| Other non-current liabilities | 105,349,023.83 | 108,164,737.46 |
| Total non-current liabilities | 3,727,182,528.77 | 2,305,246,146.04 |
| Total liabilities | 9,018,421,657.41 | 7,505,924,439.34 |
| Owners’ equity: | ||
| Share capital | 595,979,092.00 | 595,979,092.00 |
| Other equity instruments | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 80,488,045.38 | 80,488,045.38 |
| Less: Treasury stock | ||
| Other comprehensive income | -135,938.74 | -2,698,371.44 |
| Specific reserve | ||
| Surplus reserves | 17,060,448.05 | 17,060,448.05 |
| General reserve | ||
| Retained earnings | 2,434,979,874.45 | 2,457,119,795.39 |
| Total equity attributable to owners of the Company as the parent | 3,128,371,521.14 | 3,147,949,009.38 |
| Non-controlling interests | 68,535,138.32 | 118,618,291.81 |
| Total owners’ equity | 3,196,906,659.46 | 3,266,567,301.19 |
| Total liabilities and owners’ equity | 12,215,328,316.87 | 10,772,491,740.53 |
Legal representative: Liu Shengxiang Head of financial affairs: Cai LiliHead of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 September 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary assets | 3,218,510,063.27 | 2,455,001,204.14 |
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 3,791,057.57 | 755,932.14 |
| Receivables financing | ||
| Prepayments | 496,729.09 | 496,729.09 |
| Other receivables | 234,613,947.21 | 501,082,153.81 |
| Including: Interest receivable |
| Dividends receivable | ||
| Inventories | 632,775,968.47 | 624,499,208.02 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 324,461.95 | 1,113,935.28 |
| Total current assets | 4,090,512,227.56 | 3,582,949,162.48 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 1,070,735,073.09 | 1,070,542,003.11 |
| Investments in other equity instruments | 1,251,368.70 | 1,810,975.86 |
| Other non-current financial assets | ||
| Investment property | 297,235,404.94 | 312,638,785.76 |
| Fixed assets | 23,259,478.91 | 26,337,488.29 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | ||
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 475,684.08 | 605,416.29 |
| Deferred income tax assets | 250,304,269.05 | 343,958,821.07 |
| Other non-current assets | 1,165,618,047.63 | 1,613,657,031.92 |
| Total non-current assets | 2,808,879,326.40 | 3,369,550,522.30 |
| Total assets | 6,899,391,553.96 | 6,952,499,684.78 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable |
| Accounts payable | 37,484,492.58 | 64,503,938.37 |
| Advances from customers | 320,469.53 | |
| Contract liabilities | ||
| Employee benefits payable | 34,631,722.82 | 36,735,205.68 |
| Taxes and levies payable | 6,055,542.05 | 1,322,751,671.37 |
| Other payables | 4,008,888,771.89 | 3,146,684,268.89 |
| Including: Interest payable | ||
| Dividends payable | 29,642.40 | 29,642.40 |
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 698,988.89 | |
| Other current liabilities | ||
| Total current liabilities | 4,087,759,518.23 | 4,570,995,553.84 |
| Non-current liabilities: | ||
| Long-term borrowings | 616,000,000.00 | |
| Bonds payable | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | 40,000,000.00 | 40,000,000.00 |
| Total non-current liabilities | 656,000,000.00 | 40,000,000.00 |
| Total liabilities | 4,743,759,518.23 | 4,610,995,553.84 |
| Owners’ equity: | ||
| Share capital | 595,979,092.00 | 595,979,092.00 |
| Other equity instruments | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 53,876,380.11 | 53,876,380.11 |
| Less: Treasury stock | ||
| Other comprehensive income | -2,620,348.83 | -2,051,268.24 |
| Specific reserve | ||
| Surplus reserves | 16,403,637.61 | 16,403,637.61 |
| Retained earnings | 1,491,993,274.84 | 1,677,296,289.46 |
| Total owners’ equity | 2,155,632,035.73 | 2,341,504,130.94 |
| Total liabilities and owners’ equity | 6,899,391,553.96 | 6,952,499,684.78 |
3. Consolidated Income Statement for Q3
Unit: RMB
| Item | Q3 2020 | Q3 2019 |
| 1. Revenues | 332,619,949.47 | 413,888,412.11 |
| Including: Operating revenue | 332,619,949.47 | 413,888,412.11 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| 2. Costs and expenses | 367,537,882.15 | 406,700,062.33 |
| Including: Cost of sales | 261,607,098.91 | 273,139,451.18 |
| Interest expense | ||
| Fee and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and levies | 18,085,942.91 | 16,705,792.57 |
| Selling expense | 11,398,772.15 | 25,189,654.31 |
| Administrative expense | 44,428,672.14 | 44,291,289.80 |
| Development costs | ||
| Finance costs | 32,017,396.04 | 47,373,874.47 |
| Including: Interest expense | 49,420,512.79 | 64,259,301.86 |
| Interest income | -17,655,501.01 | -16,223,424.26 |
| Add: Other income | 1,928,566.41 | 1,841,201.86 |
| Return on investment (“-” for loss) | 36,008.19 | 1,622,571.12 |
| Including: Share of profit or loss of joint ventures and associates | 36,008.19 | 1,622,571.12 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | ||
| Credit impairment loss (“-” for loss) | -1,114,094.55 | 2,676,592.15 |
| Asset impairment loss (“-” for loss) | 1,161,457.26 | -14,141,391.62 |
| Asset disposal income (“-” for loss) | ||
| 3. Operating profit (“-” for loss) | -32,905,995.37 | -812,676.71 |
| Add: Non-operating income | 660,275.06 | 11,674,269.98 |
| Less: Non-operating expense | 780,654.99 | 1,270,497.23 |
| 4. Gross profit (“-” for loss) | -33,026,375.30 | 9,591,096.04 |
| Less: Income tax expense | 3,347,674.67 | 14,900,750.06 |
| 5. Net profit (“-” for net loss) | -36,374,049.97 | -5,309,654.02 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | -36,374,049.97 | -5,309,654.02 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | -19,555,182.58 | 22,644,003.48 |
| 5.2.2 Net profit attributable to non-controlling interests | -16,818,867.39 | -27,953,657.50 |
| 6. Other comprehensive income, net of tax | 1,985,567.36 | -1,359,884.19 |
| Attributable to owners of the Company as the parent | 1,985,567.36 | -1,359,884.19 |
| 6.1 Items that will not be reclassified to profit or loss | -113,934.43 | |
| 6.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | -113,934.43 | |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | 2,099,501.79 | -1,359,884.19 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 6.2.2 Changes in the fair value of other debt investments | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for other debt investments | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 2,099,501.79 | -1,359,884.19 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | -34,388,482.61 | -6,669,538.21 |
| Attributable to owners of the Company as the parent | -17,569,615.22 | 21,284,119.29 |
| Attributable to non-controlling interests | -16,818,867.39 | -27,953,657.50 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | -0.0328 | 0.0380 |
| 8.2 Diluted earnings per share | -0.0328 | 0.0380 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees beforethe combinations was RMB0, with the amount for the same period of last year being RMB23,842,246.30.Legal representative: Liu Shengxiang Head of financial affairs: Cai LiliHead of the financial department: Liu Qiang
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
| Item | Q3 2020 | Q3 2019 |
| 1. Operating revenue | 12,636,812.10 | 36,838,750.54 |
| Less: Cost of sales | 8,552,442.28 | 9,778,124.74 |
| Taxes and levies | 1,456,342.22 | 8,621,210.66 |
| Selling expense | 311,068.80 | 5,183,474.22 |
| Administrative expense | 15,943,653.30 | 15,168,684.33 |
| Development costs | ||
| Finance costs | -7,883,814.72 | -10,867,569.80 |
| Including: Interest expense | 6,430,697.78 | |
| Interest income | -14,316,137.47 | -10,887,450.83 |
| Add: Other income | ||
| Return on investment (“-” for loss) | 26,555,924.33 | 28,854,871.29 |
| Including: Share of profit or loss of joint ventures and associates | 36,008.19 | 1,426,936.27 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | ||
| Credit impairment loss (“-” for loss) | ||
| Asset impairment loss (“-” for loss) | ||
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | 20,813,044.55 | 37,809,697.68 |
| Add: Non-operating income | 32,112.50 | |
| Less: Non-operating expense | 30,709.95 | 11,123.48 |
| 3. Gross profit (“-” for loss) | 20,782,334.60 | 37,830,686.70 |
| Less: Income tax expense | 16,397,077.12 | 8,900,600.16 |
| 4. Net profit (“-” for net loss) | 4,385,257.48 | 28,930,086.54 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 4,385,257.48 | 28,930,086.54 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | -113,934.43 | |
| 5.1 Items that will not be reclassified to profit or loss | -113,934.43 | |
| 5.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | -113,934.43 | |
| 5.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | ||
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 5.2.2 Changes in the fair value of other debt investments | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Credit impairment allowance for other debt investments | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements |
| 5.2.7 Other | ||
| 6. Total comprehensive income | 4,271,323.05 | 28,930,086.54 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | 0.0074 | 0.0485 |
| 7.2 Diluted earnings per share | 0.0074 | 0.0485 |
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| 1. Revenues | 1,753,697,717.30 | 1,479,369,294.41 |
| Including: Operating revenue | 1,753,697,717.30 | 1,479,369,294.41 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| 2. Costs and expenses | 1,527,399,689.48 | 1,277,869,707.73 |
| Including: Cost of sales | 873,302,042.71 | 872,814,979.96 |
| Interest expense | ||
| Fee and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and levies | 412,829,423.52 | 141,770,817.43 |
| Selling expense | 22,942,832.34 | 43,482,379.03 |
| Administrative expense | 132,861,676.49 | 127,520,585.91 |
| Development costs | ||
| Finance costs | 85,463,714.42 | 92,280,945.40 |
| Including: Interest expense | 134,280,009.59 | 138,229,418.43 |
| Interest income | -48,882,862.25 | -47,406,228.68 |
| Add: Other income | 4,850,559.92 | 2,213,022.38 |
| Return on investment (“-” for loss) | 193,069.98 | 2,403,397.69 |
| Including: Share of profit or loss of joint ventures and associates | 193,069.98 | 2,403,397.69 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | ||
| Credit impairment loss (“-” for loss) | 1,832.91 | -1,234,818.24 |
| Asset impairment loss (“-” for loss) | 1,163,290.17 | -12,807,566.02 |
| Asset disposal income (“-” for loss) | ||
| 3. Operating profit (“-” for loss) | 232,506,780.80 | 192,073,622.49 |
| Add: Non-operating income | 4,904,450.96 | 18,549,688.44 |
| Less: Non-operating expense | 3,180,142.69 | 3,084,096.53 |
| 4. Gross profit (“-” for loss) | 234,231,089.07 | 207,539,214.40 |
| Less: Income tax expense | 92,741,690.38 | 84,622,054.56 |
| 5. Net profit (“-” for net loss) | 141,489,398.69 | 122,917,159.84 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 141,489,398.69 | 122,917,159.84 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 192,412,552.18 | 178,566,428.88 |
| 5.2.2 Net profit attributable to non-controlling interests | -50,923,153.49 | -55,649,269.04 |
| 6. Other comprehensive income, net of tax | 2,562,432.70 | -1,157,059.94 |
| Attributable to owners of the Company as the parent | 2,562,432.70 | -1,157,059.94 |
| 6.1 Items that will not be reclassified to profit or loss | -569,080.59 |
| 6.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | -569,080.59 | |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | 3,131,513.29 | -1,157,059.94 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 6.2.2 Changes in the fair value of other debt investments | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for other debt investments | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 3,131,513.29 | -1,157,059.94 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | 144,051,831.39 | 121,760,099.90 |
| Attributable to owners of the Company as the parent | 194,974,984.88 | 177,409,368.94 |
| Attributable to non-controlling interests | -50,923,153.49 | -55,649,269.04 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.3229 | 0.2996 |
| 8.2 Diluted earnings per share | 0.3229 | 0.2996 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees beforethe combinations was RMB0, with the amount for the same period of last year being RMB76,764,647.79.
Legal representative: Liu Shengxiang Head of financial affairs: Cai LiliHead of the financial department: Liu Qiang
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| 1. Operating revenue | 38,465,142.12 | 378,748,801.89 |
| Less: Cost of sales | 24,388,419.81 | 74,483,319.07 |
| Taxes and levies | 7,529,628.09 | 115,202,375.21 |
| Selling expense | 907,965.80 | 12,115,904.81 |
| Administrative expense | 47,136,737.94 | 41,534,008.61 |
| Development costs | ||
| Finance costs | -35,879,036.98 | -31,078,642.03 |
| Including: Interest expense | 9,506,248.89 | |
| Interest income | -43,625,238.12 | -31,332,593.96 |
| Add: Other income | 156,220.40 | |
| Return on investment (“-” for loss) | 89,129,914.85 | 45,735,016.53 |
| Including: Share of profit or loss of joint ventures and associates | 193,069.98 | 2,207,762.84 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | ||
| Credit impairment loss (“-” for loss) | 86,608.96 | 475,313.54 |
| Asset impairment loss (“-” for loss) | ||
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | 83,754,171.67 | 212,702,166.29 |
| Add: Non-operating income | 349,266.45 | 352,112.50 |
| Less: Non-operating expense | 2,138,000.00 | 1,113,254.57 |
| 3. Gross profit (“-” for loss) | 81,965,438.12 | 211,941,024.22 |
| Less: Income tax expense | 52,715,979.62 | 50,231,672.14 |
| 4. Net profit (“-” for net loss) | 29,249,458.50 | 161,709,352.08 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 29,249,458.50 | 161,709,352.08 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | -569,080.59 | |
| 5.1 Items that will not be reclassified to profit or loss | -569,080.59 | |
| 5.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | -569,080.59 | |
| 5.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | ||
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 5.2.2 Changes in the fair value of other debt investments | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Credit impairment allowance for other debt investments | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.7 Other | ||
| 6. Total comprehensive income | 28,680,377.91 | 161,709,352.08 |
| 7. Earnings per share |
| 7.1 Basic earnings per share | 0.0491 | 0.2713 |
| 7.2 Diluted earnings per share | 0.0491 | 0.2713 |
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 2,899,288,769.77 | 3,787,773,737.29 |
| Net increase in customer deposits and deposits from other banks and financial institutions | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, fees and commissions received | ||
| Net increase in loans from other banks and financial institutions | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax and levy rebates | 12,858,739.05 | |
| Cash generated from other operating activities | 418,683,926.79 | 291,663,588.15 |
| Subtotal of cash generated from operating activities | 3,330,831,435.61 | 4,079,437,325.44 |
| Payments for commodities and services | 1,128,024,166.75 | 2,177,459,851.77 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and other banks and financial institutions |
| Payments for claims on original insurance contracts | ||
| Net increase in loans to other banks and financial institutions | ||
| Interest, fees and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 472,672,344.40 | 449,852,387.55 |
| Taxes and levies paid | 2,012,684,115.79 | 604,390,364.21 |
| Cash used in other operating activities | 170,217,765.85 | 181,956,087.58 |
| Subtotal of cash used in operating activities | 3,783,598,392.79 | 3,413,658,691.11 |
| Net cash generated from/used in operating activities | -452,766,957.18 | 665,778,634.33 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | ||
| Return on investment | ||
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 4,608.08 | 21,465.00 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 4,608.08 | 21,465.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 28,396,835.53 | 37,018,010.83 |
| Payments for investments | ||
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | 465,807,569.82 | 1,555,272.25 |
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 494,204,405.35 | 38,573,283.08 |
| Net cash generated from/used in investing activities | -494,199,797.27 | -38,551,818.08 |
| 3. Cash flows from financing activities: |
| Capital contributions received | 840,000.00 | 3,220,000.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 840,000.00 | 3,220,000.00 |
| Borrowings received | 2,172,000,000.00 | |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 2,172,840,000.00 | 3,220,000.00 |
| Repayment of borrowings | 1,033,000.00 | |
| Interest and dividends paid | 354,270,624.80 | 485,940,306.16 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 355,303,624.80 | 485,940,306.16 |
| Net cash generated from/used in financing activities | 1,817,536,375.20 | -482,720,306.16 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | -1,054,883.75 | 214,256.25 |
| 5. Net increase in cash and cash equivalents | 869,514,737.00 | 144,720,766.34 |
| Add: Cash and cash equivalents, beginning of the period | 3,285,345,233.47 | 3,881,027,257.89 |
| 6. Cash and cash equivalents, end of the period | 4,154,859,970.47 | 4,025,748,024.23 |
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 31,110,821.19 | 320,412,800.30 |
| Tax and levy rebates | ||
| Cash generated from other operating activities | 1,628,480,841.02 | 2,136,343,279.15 |
| Subtotal of cash generated from operating activities | 1,659,591,662.21 | 2,456,756,079.45 |
| Payments for commodities and services | 41,793,930.04 | 581,569,445.28 |
| Cash paid to and for employees | 30,804,647.03 | 31,673,711.59 |
| Taxes and levies paid | 1,294,824,532.55 | 351,320,590.40 |
| Cash used in other operating activities | 12,507,827.79 | 42,133,507.81 |
| Subtotal of cash used in operating activities | 1,379,930,937.41 | 1,006,697,255.08 |
| Net cash generated from/used in operating activities | 279,660,724.80 | 1,450,058,824.37 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 565,000,000.00 | |
| Return on investment | 42,472,222.23 | |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 3,955.86 | 690.00 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 565,003,955.86 | 42,472,912.23 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 25,002,677.36 | 15,905,263.70 |
| Payments for investments | 1,200,000,000.00 | |
| Net payments for the acquisition of subsidiaries and other business units | 465,807,569.82 | 1,600,000.00 |
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 490,810,247.18 | 1,217,505,263.70 |
| Net cash generated from/used in investing activities | 74,193,708.68 | -1,175,032,351.47 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings received | 616,000,000.00 | |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 616,000,000.00 | |
| Repayment of borrowings | ||
| Interest and dividends paid | 223,359,733.12 | 178,793,727.60 |
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 223,359,733.12 | 178,793,727.60 |
| Net cash generated from/used in financing activities | 392,640,266.88 | -178,793,727.60 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 4,949.10 | 2,634.28 |
| 5. Net increase in cash and cash equivalents | 746,499,649.46 | 96,235,379.58 |
| Add: Cash and cash equivalents, beginning of the period | 2,450,935,673.17 | 2,520,788,994.16 |
| 6. Cash and cash equivalents, end of the period | 3,197,435,322.63 | 2,617,024,373.74 |
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2020) of the NewAccounting Standards Governing Revenue and Leases
√ Applicable □ Not applicable
Whether the Company needs to adjust the items in balance sheet at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjusted |
| Current assets: | |||
| Monetary assets | 3,297,890,935.91 | 3,297,890,935.91 | |
| Settlement reserve | |||
| Loans to other banks and financial institutions | |||
| Held-for-trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | 216,923,663.25 | 216,923,663.25 | |
| Receivables financing | |||
| Prepayments | 69,546,774.17 | 69,546,774.17 | |
| Premiums receivable | |||
| Reinsurance receivables |
| Receivable reinsurance contract reserve | |||
| Other receivables | 917,981,165.74 | 917,981,165.74 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Financial assets purchased under resale agreements | |||
| Inventories | 4,913,510,876.66 | 4,913,510,876.66 | |
| Contract assets | |||
| Assets held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 42,500,585.94 | 42,500,585.94 | |
| Total current assets | 9,458,354,001.67 | 9,458,354,001.67 | |
| Non-current assets: | |||
| Loans and advances to customers | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 45,076,122.72 | 45,076,122.72 | |
| Investments in other equity instruments | 1,580,475.86 | 1,580,475.86 | |
| Other non-current financial assets | |||
| Investment property | 503,323,428.61 | 503,323,428.61 | |
| Fixed assets | 93,557,782.83 | 93,557,782.83 | |
| Construction in progress | |||
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 700,369.66 | 700,369.66 | |
| Development costs | |||
| Goodwill |
| Long-term prepaid expense | 7,034,472.79 | 7,034,472.79 | |
| Deferred income tax assets | 658,153,122.73 | 658,153,122.73 | |
| Other non-current assets | 4,711,963.66 | 4,711,963.66 | |
| Total non-current assets | 1,314,137,738.86 | 1,314,137,738.86 | |
| Total assets | 10,772,491,740.53 | 10,772,491,740.53 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Borrowings from the central bank | |||
| Loans from other banks and financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Accounts payable | 577,689,139.10 | 577,689,139.10 | |
| Advances from customers | 728,186,032.63 | 33,972,360.94 | -694,213,671.69 |
| Contract liabilities | 0.00 | 694,213,671.69 | 694,213,671.69 |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and deposits from other banks and financial institutions | |||
| Payables for acting trading of securities | |||
| Payables for underwriting of securities | |||
| Employee benefits payable | 143,493,868.80 | 143,493,868.80 | |
| Taxes and levies payable | 2,598,283,291.68 | 2,598,283,291.68 | |
| Other payables | 1,149,104,928.85 | 1,149,104,928.85 | |
| Including: Interest payable | 0.00 | 0.00 | |
| Dividends payable | 12,202,676.04 | 12,202,676.04 | |
| Fees and commissions payable | |||
| Reinsurance payables |
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | 3,921,032.24 | 3,921,032.24 | |
| Other current liabilities | |||
| Total current liabilities | 5,200,678,293.30 | 5,200,678,293.30 | |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term borrowings | 2,193,833,000.00 | 2,193,833,000.00 | |
| Bonds payable | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | 2,903,327.87 | 2,903,327.87 | |
| Deferred income | 341,259.63 | 341,259.63 | |
| Deferred income tax liabilities | 3,821.08 | 3,821.08 | |
| Other non-current liabilities | 108,164,737.46 | 108,164,737.46 | |
| Total non-current liabilities | 2,305,246,146.04 | 2,305,246,146.04 | |
| Total liabilities | 7,505,924,439.34 | 7,505,924,439.34 | |
| Owners’ equity: | |||
| Share capital | 595,979,092.00 | 595,979,092.00 | |
| Other equity instruments | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Capital reserves | 80,488,045.38 | 80,488,045.38 | |
| Less: Treasury stock | |||
| Other comprehensive income | -2,698,371.44 | -2,698,371.44 | |
| Specific reserve |
| Surplus reserves | 17,060,448.05 | 17,060,448.05 | |
| General reserve | |||
| Retained earnings | 2,457,119,795.39 | 2,457,119,795.39 | |
| Total equity attributable to owners of the Company as the parent | 3,147,949,009.38 | 3,147,949,009.38 | |
| Non-controlling interests | 118,618,291.81 | 118,618,291.81 | |
| Total owners’ equity | 3,266,567,301.19 | 3,266,567,301.19 | |
| Total liabilities and owners’ equity | 10,772,491,740.53 | 10,772,491,740.53 |
Note for adjustment:
The Company implemented the Accounting Standards for Business Enterprises No. 14 – Revenue revised by the Ministry of Financefrom 1 January 2020. According to the regulations of the original and new standards, the information during the comparable periodshall not be adjusted, and the adjustment of discrepancy between with the new standards at the first execution day and originalstandards shall be restated retroactively in the beginning retained earnings of 2020 or other comprehensive income.
Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjusted |
| Current assets: | |||
| Monetary assets | 2,455,001,204.14 | 2,455,001,204.14 | |
| Held-for-trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | 755,932.14 | 755,932.14 | |
| Receivables financing | |||
| Prepayments | 496,729.09 | 496,729.09 | |
| Other receivables | 501,082,153.81 | 501,082,153.81 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Inventories | 624,499,208.02 | 624,499,208.02 | |
| Contract assets | |||
| Assets held for sale | |||
| Current portion of non-current assets |
| Other current assets | 1,113,935.28 | 1,113,935.28 | |
| Total current assets | 3,582,949,162.48 | 3,582,949,162.48 | |
| Non-current assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 1,070,542,003.11 | 1,070,542,003.11 | |
| Investments in other equity instruments | 1,810,975.86 | 1,810,975.86 | |
| Other non-current financial assets | |||
| Investment property | 312,638,785.76 | 312,638,785.76 | |
| Fixed assets | 26,337,488.29 | 26,337,488.29 | |
| Construction in progress | |||
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | |||
| Development costs | |||
| Goodwill | |||
| Long-term prepaid expense | 605,416.29 | 605,416.29 | |
| Deferred income tax assets | 343,958,821.07 | 343,958,821.07 | |
| Other non-current assets | 1,613,657,031.92 | 1,613,657,031.92 | |
| Total non-current assets | 3,369,550,522.30 | 3,369,550,522.30 | |
| Total assets | 6,952,499,684.78 | 6,952,499,684.78 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Accounts payable | 64,503,938.37 | 64,503,938.37 | |
| Advances from customers | 320,469.53 | 320,469.53 |
| Contract liabilities | |||
| Employee benefits payable | 36,735,205.68 | 36,735,205.68 | |
| Taxes and levies payable | 1,322,751,671.37 | 1,322,751,671.37 | |
| Other payables | 3,146,684,268.89 | 3,146,684,268.89 | |
| Including: Interest payable | |||
| Dividends payable | 29,642.40 | 29,642.40 | |
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | |||
| Other current liabilities | |||
| Total current liabilities | 4,570,995,553.84 | 4,570,995,553.84 | |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | |||
| Deferred income tax liabilities | |||
| Other non-current liabilities | 40,000,000.00 | 40,000,000.00 | |
| Total non-current liabilities | 40,000,000.00 | 40,000,000.00 | |
| Total liabilities | 4,610,995,553.84 | 4,610,995,553.84 | |
| Owners’ equity: | |||
| Share capital | 595,979,092.00 | 595,979,092.00 | |
| Other equity instruments | |||
| Including: Preference |
| shares | |||
| Perpetual bonds | |||
| Capital reserves | 53,876,380.11 | 53,876,380.11 | |
| Less: Treasury stock | |||
| Other comprehensive income | -2,051,268.24 | -2,051,268.24 | |
| Specific reserve | |||
| Surplus reserves | 16,403,637.61 | 16,403,637.61 | |
| Retained earnings | 1,677,296,289.46 | 1,677,296,289.46 | |
| Total owners’ equity | 2,341,504,130.94 | 2,341,504,130.94 | |
| Total liabilities and owners’ equity | 6,952,499,684.78 | 6,952,499,684.78 |
Note for adjustment:
The Company implemented the Accounting Standards for Business Enterprises No. 14 – Revenue revised by the Ministry of Financefrom 1 January 2020. According to the regulations of the original and new standards, the information during the comparable periodshall not be adjusted, and the adjustment of discrepancy between with the new standards at the first execution day and originalstandards shall be restated retroactively in the beginning retained earnings of 2020 or other comprehensive income.
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2020of the New Accounting Standards Governing Revenue and Leases
√ Applicable □ Not applicable
According to the regulations of new accounting standards governing revenue, the Company disclosed the accounting statements inline with new accounting standards governing revenue from the first quarter of 2020 and did not restate comparative data in 2019,which didn’t influence the relevant financial index in 2019. There was no significant change in the revenue recognition method of theCompany resulted from the implementation of new standards governing revenue, as well as the net profit, total assets and net assetsin the prior and current period.
III Independent Auditor’s ReportIndicate by tick mark whether the financial statements above have been audited by an independent auditor.
□ Yes √ No
These financial statements have not been audited by such an auditor.