Zhejiang NHU Company Ltd.
Q3 2021 Report
Important Content Reminder:
1. The Board of Directors, Board of Supervisors, directors, supervisors and senior executives ofZhejiang NHU Company Ltd. (hereinafter referred to as the “Company”) hereby guarantee that theinformation presented in this report is authentic, accurate, complete and free of any false records,misleading statements or material omissions, and they will bear joint and several liabilities for suchinformation.
2. The Company’s legal representative, the person in charge of finance and accounting work, andthe person in charge of accounting institution (Accounting Officer) hereby declare and warrant thatthe financial statements in this report are authentic, accurate and complete.
3. Whether the Third Quarterly Report has been audited or not
□ Yes √ No
Note:
This Report has been prepared in both Chinese and English version, and the English version is forreference only. Should there be any discrepancies or misunderstandings between the two versions,the Chinese versions shall prevail. The complete published Chinese Third Quarterly Report may beobtained at www.cninfo.com.cn.
Section Ⅰ Key Accounting DataⅠ Key Accounting Data and Financial IndicatorsWhether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not
√ Yes □ No
Retroactive adjustment or restatement of reasonsConsolidated under the Same Control
Note: Weifang Jinghe Real Estate Co., Ltd was included in the scope of the Company’s consolidation on November 1, 2020, and theCompany made retroactive adjustments to the relevant financial statement data.[Note] After the implementation of the Company’s profit distribution plan for 2020, the Company’s share capital increased from2,148,662,300.00 shares to 2,578,394,760.00 shares, and the above earnings per share for the same period of the previous year wasrecalculated based on the adjusted share capital.
| Item | Q3 2021 | Q3 2020 | YoY Change(%) | Q1-Q3 2021 | Q1-Q3 2020 | YoY Change(%) | ||
| Before Adjustment | After Adjustment | After Adjustment | Before Adjustment | After Adjustment | After Adjustment | |||
| Operating Revenue (RMB) | 3,262,074,936.89 | 2,170,163,165.68 | 2,170,163,165.68 | 50.31% | 10,516,296,574.90 | 7,473,328,667.93 | 7,473,328,667.93 | 40.72% |
| Net Profit Attributable to Shareholders of the Listed Company (RMB) | 957,591,164.57 | 728,173,287.72 | 726,592,641.58 | 31.79% | 3,366,090,298.07 | 2,937,403,053.23 | 2,935,522,918.78 | 14.67% |
| Net Profit Attributable to Shareholders of the Listed Company after Deducting Non-recurring Gains and Losses (RMB) | 922,007,774.31 | 686,225,513.80 | 686,225,513.80 | 34.36% | 3,201,462,429.94 | 2,801,062,619.03 | 2,801,062,619.03 | 14.29% |
| Net Cash Flow Generated by Operational Activities (RMB) | —— | —— | —— | —— | 3,830,824,490.52 | 2,136,658,649.79 | 2,044,681,185.86 | 87.36% |
| Basic Earnings per Share (RMB/Share) | 0.37 | 0.28[Note] | 0.28[Note] | 32.14% | 1.31 | 1.14[Note] | 1.14[Note] | 14.91% |
| Diluted Earnings per Share (RMB/Share) | 0.37 | 0.28[Note] | 0.28[Note] | 32.14% | 1.31 | 1.14[Note] | 1.14[Note] | 14.91% |
| Weighted Average ROE | 4.53% | 4.04% | 4.01% | Increase 0.52 percentage point | 16.55% | 16.45% | 16.32% | Increase 0.23 percentage point |
| Item | At the End of the Current Reporting Period | At the End of Last Year | Change(%) | |||||
| Before Adjustment | After Adjustment | After Adjustment | ||||||
| Total Assets (RMB) | 33,553,242,598.08 | 30,897,007,799.54 | 30,897,007,799.54 | 8.60% | ||||
| Net Assets Attributable to Shareholders of the Listed Company (RMB) | 20,870,228,922.98 | 19,336,254,922.95 | 19,336,254,922.95 | 7.93% | ||||
II Breakdown of non-recurring gains and losses for this period
√ Applicable □ Not applicable
Unit: RMB
| Item | Q3 2021 | Q1-Q3 2021 | Note |
| Profit and Loss from Disposal of Non-current Assets | -783,508.00 | 282,056.79 | |
| The government subsidies included in the current profits and losses (excluding the government subsidies closely related to regular businesses of the Company and issued in the quota or quantity based on the national standards) | 26,651,861.18 | 103,032,538.14 | |
| Gains or losses from investment or asset management entrusted to others | 3,218,622.39 | 32,836,592.17 | |
| Profits and losses resulting from the changes in fair value for holding trading financial assets, derivative financial assets and trading financial liabilities, derivative financial liabilities and investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other obligatory right investment, excluding the effective hedging businesses related to the regular business operation of the Company | 8,142,423.95 | 31,443,452.98 | |
| Non-operating revenue and expenses other than the above | -1,158,572.44 | 8,407,953.47 | |
| Less: Impact of income tax | 487,436.82 | 11,374,725.42 | |
| Total | 35,583,390.26 | 164,627,868.13 | -- |
Details of other profit and loss items that meet the definition of non-recurring profit and loss
□ Applicable √ Not applicable
The Company does not have any other profit and loss items that meet the definition of non-recurring profit and loss.Explanation on defining the non-recurring profit and loss items listed in the No. 1 Explanatory Announcement on InformationDisclosure for Companies Offering Their Securities to Public - Non-recurring Profit and loss as non-recurring profit and loss items.
□ Applicable √ Not applicable
The Company does not define the non-recurring profit and loss items listed in the No. 1 Explanatory Announcement on InformationDisclosure for Companies Offering Their Securities to Public - Non-recurring Profit and loss as recurring profit and loss items.III Major Changes of Main Items in Financial Statements and Financial Indicators within the ReportingPeriod, as well as the Reasons for the Changes
√ Applicable □Not applicable
1、Balance Sheet Position
(1) The closing balance of trading financial assets increased by 47.54% compared to the closing balance in the previous year, mainlydue to the increase of the purchase of principal-protected floating-income financial products in the current reporting period.
(2) The closing balance of notes receivable increased by 37.62% compared to the closing balance in the previous year. It was mainlydue to that the qualified notes receivable were reclassified into financial assets measured at fair value and recorded into othercomprehensive income in the previous year.
(3) The closing balance of receivables financing decreased by 79.72% compared to the closing balance in the previous year. It was
mainly due to that the qualified notes receivable were reclassified into financial assets measured at fair value and recorded into othercomprehensive income in the previous year.
(4) The closing balance of prepayments increased by 52.64% compared to the closing balance in the previous year. It was mainly dueto the increase of prepayment in raw materials in the current reporting period.
(5) The closing balance of other current assets decreased by 73.65% compared to the closing balance in the previous year. It wasmainly due to the repurchase of the expired bank financial products in the current reporting period.
(6) The closing balance of construction in progress increased by 91.98% compared to the closing balance in the previous year. It wasmainly due to the increase of the investment in project TMB, project Hongweisu and other new projects in the current reportingperiod.
(7) The closing balance of long-term deferred expenses increased by 51.55% compared to the closing balance in the previous year. Itwas mainly due to the increase of input in deferred material in the current reporting period.
(8) The closing balance of other non-current assets increased by 74.36% compared to the closing balance in the previous year. It wasmainly due to the increase of prepayment in equipment in the current reporting period.
(9) The closing balance of contract labilities increased by 36.98% compared to the closing balance in the previous year. It was mainlydue to the increase of advance payments on sales in the current reporting period.
(10) The closing balance of other payables decreased by 48.43% compared to the closing balance in the previous year. It was mainlydue to paying the balance of projects.
(11) The closing balance of long-term borrowings increased by 30.01% compared to the closing balance in the previous year. It wasmainly due to the increase of long-term bank borrowings required for projects investment.
(12) The closing balance of deferred income tax liabilities increased by 38.78% compared to the closing balance in the previous year.It was mainly due to the increase of taxable temporary differences, which was brought by the deducting amount of part of fixedassets when calculating the taxable income amount.
(13) The closing balance of treasury share increased by 100.00% compared to the closing balance in the previous year. It was mainlydue to the repurchase of part of companies’ social public shares.
(14) The closing balance of other comprehensive incomes decreased by 37.44% compared to the closing balance in the previous year.It was mainly due to the difference of translating foreign currency financial statement.
2. Income Statement Position
(1) Operating income in the current Q1-Q3 period increased by 40.72% compared to the same period of last year. It was mainly dueto the increase of nutritional products on sales volume in the current Q1-Q3 period.
(2) Operating cost in the current Q1-Q3 period increased by 80.12% compared to the same period of last year. It was mainly due tothe increase of nutritional products on sales volume, and adjusting freight and transportation premium into operating costs forimplementing the new income standard in the current Q1-Q3 period.
(3) Sales expenses in the current Q1-Q3 period decreased by 56.12% compared to the same period of last year. It was mainly due toadjusting freight and transportation premium into operating costs for implementing the new income standard in the current Q1-Q3period.
(4) Research and development expenses in the current Q1-Q3 period increased by 48.96% compared to the same period of last year.It was mainly due to the increase of material inputs and salary in the current Q1-Q3 period.
(5) Investment income in the current Q1-Q3 period decreased by 30.94% compared to the same period of last year. It was mainly dueto the decrease in purchase of structured deposits in the current Q1-Q3 period..
(6) Incomes from changes in fair in the current Q1-Q3 period increased by 160.45% compared to the same period of last year. It wasmainly due to the fluctuation in exchange rate of forward settlement and sale in the current Q1-Q3 period.
(7) Credit impairment losses in the current Q1-Q3 period decreased by 36.46% compared to the same period of last year. It wasmainly due to the decrease of bad debt provision caused by changes in the age of accounts receivable in the current Q1-Q3 period..
(8) Asset impairment losses in the current Q1-Q3 period increased by 220.62% compared to the same period of last year. It wasmainly due to the increase of provision for inventory declines in the current Q1-Q3 period.
(9) Asset disposal income in the current Q1-Q3 period decreased by 90.78% compared to the same period of last year. It was mainlydue to the loss on disposal of non-current assets in the current Q1-Q3 period.
(10) Non-operating revenues in the current Q1-Q3 period increased by 710.82% compared to the same period of last year. It wasmainly due to receive compensation in the current Q1-Q3 period.
(11) Non-operating expenses in the current Q1-Q3 period decreased by 73.87% compared to the same period of last year. It wasmainly due to donations made to the epidemic last year.
3. Cash Flow Statement Position
(1) Net cash flow generated by operating activities in the current Q1-Q3 period increased by 87.36% compared to the same period oflast year. It was mainly due to the increase in sales revenue and corresponding increase in payment for goods in the current Q1-Q3period.
(2) Net cash flow generated by investment activities in the current Q1-Q3 period decreased by 541.92% compared to the same periodof last year. It was mainly due to the decrease of financial products recovered and the increase of fixed asset construction expenses inthe current Q1-Q3 period.
(3) Net cash flow generated by financing activities in the current Q1-Q3 period increased by 39.06% compared to the same period oflast year. It was mainly due to the increase of new bank borrowings in the current Q1-Q3 period.
Section Ⅱ Shareholders InformationⅠ Total Number of Common Shareholders and Preferred Shareholders Whose Voting Rights Have BeenRecovered, Shareholding List of Top 10 Shareholders
Unit: share
| Total Number of Common Shareholders at the End of the Reporting Period | 99,655 | Total Number of Preferred Shareholders (If Any) Whose Voting Rights Have Been Recovered at the End of the Reporting Period | 0 | ||||||
| Shareholding List of Top 10 Shareholders | |||||||||
| Shareholder Name | Shareholder Nature | Shareholding Percentage | Shareholding Amount | The Number of Shares Held with Trading Restrictions | Pledged, Marked or Frozen | ||||
| Status | Number | ||||||||
| NHU Holding Group Co., Ltd. | Domestic Non-state-owned Legal Person | 48.55% | 1,251,903,644 | ||||||
| Hong Kong Securities Clearing Co., Ltd. | Overseas Legal Person | 2.94% | 75,876,286 | ||||||
| Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund | Others | 1.75% | 45,060,167 | ||||||
| National Social Security Fund 112 | Others | 1.01% | 26,086,092 | ||||||
| National Social Security Fund 503 | Others | 0.95% | 24,500,000 | ||||||
| Kuwait Investment Authority | Overseas Legal Person | 0.59% | 15,318,702 | ||||||
| Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Qizhou Fund | Others | 0.51% | 13,164,209 | ||||||
| Hu Baishan | Domestic Natural Person | 0.47% | 12,163,274 | 9,122,455 | |||||
| Beijing Yuanfeng Private Equity Fund Management Partnership (Limited Partnership) - Yuanfeng Value Private Equity Investment Fund | Others | 0.46% | 11,977,187 | ||||||
| Chongyang Group Co., Ltd. | Domestic Non-state-owned Legal Person | 0.45% | 11,635,159 | ||||||
| Shareholding List of Top 10 Shareholders without Trading Restrictions | |||||||||
| Shareholder Name | Shareholding Amount without Trading Restrictions | Type of Shares | |||||||
| Type | Amount | ||||||||
| NHU Holding Group Co., Ltd. | 1,251,903,644 | RMB common stock | 1,251,903,644 | ||||||
| Hong Kong Securities Clearing Co., Ltd. | 75,876,286 | RMB common stock | 75,876,286 | ||||||
| Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund | 45,060,167 | RMB common stock | 45,060,167 | ||||||
| National Social Security Fund 112 | 26,086,092 | RMB common stock | 26,086,092 | ||||||
| National Social Security Fund 503 | 24,500,000 | RMB common stock | 24,500,000 |
| Kuwait Investment Authority | 15,318,702 | RMB common stock | 15,318,702 |
| Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Qizhou Fund | 13,164,209 | RMB common stock | 13,164,209 |
| Beijing Yuanfeng Private Equity Fund Management Partnership (Limited Partnership) - Yuanfeng Value Private Equity Investment Fund | 11,977,187 | RMB common stock | 11,977,187 |
| Chongyang Group Co., Ltd. | 11,635,159 | RMB common stock | 11,635,159 |
| Zhejiang NHU Co., Ltd.- the Third Employee Stock Ownership Plan | 10,131,522 | RMB common stock | 10,131,522 |
| Explanation of the Association Relationship or Concerted Action of Above-mentioned Shareholders | Among the above shareholders, Hu Baishan is a director of NHU Holding Group Co., Ltd.. The Company is unaware whether there is any related relationships among other shareholders and whether they are persons acting in concert as stipulated in the “Administrative Measures for the Acquisition of Listed Companies”. | ||
| Explanation of Top 10 Shareholders’ Participation in Securities Margin Trading (If Any) | Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund holds 45,060,106 shares through the customer credit transaction guarantee securities account of Guotai Junan Securities Co., Ltd.; Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Qizhou Fund holds 13,164,133 shares through the customer credit transaction guarantee securities account of Guojin Securities Co., Ltd.;Beijing Yuanfeng Private Equity Fund Management Partnership (Limited Partnership) - Yuanfeng Value Private Equity Investment Fund holds 5,988,587 shares through the customer credit transaction guarantee securities account of Huatai Securities Co., Ltd.; Chongyang Group Co., Ltd. holds 11,634,955 shares through the customer credit transaction guarantee securities account of China Merchants Securities Co., Ltd.. | ||
Notes: Zhejiang NHU Co., Ltd. Repurchase Securities Account is among top 10 shareholders without trading restrictions at the end ofthe reporting period, but do not participate in the listing of the top 10 shareholders of the company.II Total Number of Preferred Shareholders, Shareholding List of Top 10 Preferred Shareholders
□Applicable √Not applicable
Section III Other Significant Events
√Applicable □Not applicable
Ⅰ Progress of the Share Repurchase Plan
At the 7
th Meeting of the 8
thBoard of Directors held on August 18, 2021, Zhejiang NHU Co., Ltd .(hereinafter referred to as “thecompany”) deliberated and adopted The Proposal on Share Repurchase Plan of the Company, agreed that the company would use itsown funds to repurchase part of the public shares of the company in the form of centralized bidding transaction. And the sharesrepurchased would be used for implementing equity incentive plan or employee stock ownership plan. The total amount ofrepurchase would be RMB300-600mn, and the repurchase price would be no more than RMB41/share. The specific amount of sharesrepurchased and its proportion in the total share capital shall be subject to the actual amount of shares repurchased at the expiration ofthe repurchase period. The implementation period of the share repurchase plan shall not exceed 12 months from the date when theboard of directors of the company deliberates and adopts The Proposal on Share Repurchase Plan of the Company. By September 30,2021, the company has repurchased 10,988,369 shares in the form of centralized bidding trading through Zhejiang NHU Co., Ltd.Repurchase Securities Account, accounting for 0.4262% of the company's total share capital. The maximum transaction price is RMB
30.03/ share, the minimum transaction price is RMB 26.15/ share, and the cumulative transaction amount is RMB 320,335,151.32(excluding transaction costs). The share repurchase plan complies with the requirements of relevant laws and regulations and thecompany's established repurchase plan. For more details, please refer to The Announcement on the Progress of Share Repurchase ofthe Company (2021-031) published on http://www.cninfo.com.cnII Progress of Investment Project with Raised FundsWith the approval of [2017] No. 1684 document of China Securities Regulatory Commission, the company's lead underwriter, CSCSecurities Co., Ltd., privately issued 175 million common shares (A shares) to specific objects at an issue price of RMB 28.00/share,raising a total of RMB 4,900 million. After deducting the underwriting and recommendation fees of RMB 30 million yuan (includingtax), the raised funds amounted to RMB 4,870 million, which was remitted to the raised funds supervision account of the companyby the lead underwriter, CSC Securities Co., Ltd. on December 7, 2017. In addition, after deducting lawyer fees, audit fees, capitalverification fees and other issuance expenses of RMB 4.62 million (excluding tax), and considering the deductible VAT input tax ofRMB 1.70 million of underwriting fees and recommendation fees deducted by the lead underwriter, the net amount of funds raisedwas RMB 4,867.08 million. The availability of the above raised funds has been verified by Tianjian Certified Public Accountants(special general partnership), who issued the capital verification report ([2017] No. 503).From January 1 to September 30, 2021, the actual use of the raised funds was RMB 202.17 million, and the accumulated investmentof the raised funds project was RMB 1,852.40 million. By September 30, 2021, the balance of raised funds was RMB3,590.11million.
Section Ⅳ Financial StatementsⅠ Explanation of adjustment of financial statements
1.Consolidated Balance Sheet
Prepared by: Zhejiang NHU Co., Ltd.
September 30, 2021
Unit: RMB
| Item | September 30, 2021 | December 31, 2020 |
| Current Assets: | ||
| Cash and Bank Balances | 6,340,440,223.98 | 4,927,657,236.24 |
| Deposit Reservation for Balance | ||
| Loans to Banks and Other Financial Institutions | ||
| Trading Financial Assets | 1,257,416,104.40 | 852,227,964.70 |
| Derivative Financial Assets | ||
| Notes Receivable | 456,999,661.80 | 332,064,366.59 |
| Accounts Receivable | 2,350,185,056.20 | 1,930,930,930.01 |
| Receivables Financing | 59,908,897.23 | 295,393,346.17 |
| Prepayments | 177,160,408.09 | 116,063,557.59 |
| Premium Receivable | ||
| Reinsurance Accounts Receivable | ||
| Reinsurance Contract Reserves Receivable | ||
| Other Receivables | 177,126,619.17 | 178,610,951.64 |
| Including: Interest Receivable | ||
| Dividends Receivable | ||
| Buying Back the Sale of Financial Assets | ||
| Inventories | 3,062,556,213.00 | 3,117,042,558.78 |
| Contract Assets | ||
| Holding for-sale Assets | ||
| Non-current Assets Due within 1 Year | ||
| Other Current Assets | 468,380,215.65 | 1,777,569,473.96 |
| Subtotal of Current Assets | 14,350,173,399.52 | 13,527,560,385.68 |
| Non-current Assets: | ||
| Granting of Loans and Advances | ||
| Investment in Creditor's Rights | ||
| Investment in Other Creditor's Rights | ||
| Long-term Receivables | ||
| Long-term Equity Investment | 371,718,824.16 | 343,378,891.18 |
| Investment in Other Equity Instruments | 22,998,147.55 | 22,998,147.55 |
| Other Non-current Financial Assets |
| Item | September 30, 2021 | December 31, 2020 |
| Investment Property | ||
| Fixed Assets | 14,168,850,627.38 | 13,914,151,215.54 |
| Construction in Progress | 2,544,735,203.45 | 1,325,545,420.56 |
| Productive Biological Assets | ||
| Oil and Gas Assets | ||
| Right-of-use Assets | 4,703,662.43 | |
| Intangible Assets | 1,529,049,971.25 | 1,407,067,129.87 |
| Development Expenditure | ||
| Goodwill | ||
| Long-term Deferred Expenses | 20,260,935.60 | 13,369,412.48 |
| Deferred Income Tax Assets | 56,388,768.87 | 65,143,706.00 |
| Other Non-current Assets | 484,363,057.87 | 277,793,490.68 |
| Subtotal of Non-current Assets | 19,203,069,198.56 | 17,369,447,413.86 |
| Total Assets | 33,553,242,598.08 | 30,897,007,799.54 |
| Current Liabilities: | ||
| Short-term Borrowings | 1,878,796,276.48 | 2,363,525,192.53 |
| Loan from the Central Bank | ||
| Loan from Banks and Other Financial Institutions | ||
| Transactional Financial Liabilities | ||
| Derivative Financial Liabilities | ||
| Notes Payable | 611,362,478.19 | 497,644,517.23 |
| Accounts Payable | 1,370,662,402.82 | 1,463,728,316.04 |
| Received Prepayments | ||
| Contract Liabilities | 77,122,452.03 | 56,302,537.11 |
| Financial Assets Sold for Repurchase | ||
| Deposit Taking and Interbank Deposit | ||
| Receiving from Vicariously Traded Securities | ||
| Receiving from Vicariously Sold Securities | ||
| Payroll payable | 256,340,698.11 | 322,646,061.45 |
| Tax Payable | 288,065,311.71 | 268,864,472.38 |
| Other Payables | 66,963,842.09 | 129,839,228.89 |
| Including: Interest Payable | ||
| Dividends Payable | ||
| Service Charge and Commission Payable | ||
| Reinsurance Accounts Payable | ||
| Holding for-sale Liabilities | ||
| Non-current Liabilities Due within 1 Year | 1,629,380,596.53 | 1,275,888,293.32 |
| Other Current Liabilities | 5,754,587.37 | 4,956,463.49 |
| Subtotal of Current Liabilities | 6,184,448,645.33 | 6,383,395,082.44 |
| Non-current Liabilities: | ||
| Insurance Contract Reserves |
| Item | September 30, 2021 | December 31, 2020 |
| Long-term Borrowings | 5,378,451,096.83 | 4,136,875,354.33 |
| Bonds Payable | ||
| Including: Preferred Stocks | ||
| Perpetual Bonds | ||
| Lease Liabilities | 5,363,434.35 | |
| Long-term Payables | ||
| Long-term Payroll Payable | ||
| Expected Liabilities | ||
| Deferred Income | 911,741,268.80 | 873,066,181.34 |
| Deferred Income Tax Liabilities | 138,560,546.48 | 99,839,731.45 |
| Other Non-current Liabilities | ||
| Subtotal of Non-current Liabilities | 6,434,116,346.46 | 5,109,781,267.12 |
| Total Liabilities | 12,618,564,991.79 | 11,493,176,349.56 |
| Shareholders' Equity: | ||
| Share Capital | 2,578,394,760.00 | 2,148,662,300.00 |
| Other Equity Instruments | ||
| Including: Preferred Stocks | ||
| Perpetual Bonds | ||
| Capital Reserves | 4,130,790,096.84 | 4,560,522,556.84 |
| Less: Treasury Share | 320,360,784.48 | |
| Other Comprehensive Incomes | 17,394,706.91 | 27,803,829.31 |
| Special Reserves | 12,267,565.69 | 9,550,346.85 |
| Surplus Reserves | 1,074,331,150.00 | 1,074,331,150.00 |
| General Risk Reserves | ||
| Undistributed Profits | 13,377,411,428.02 | 11,515,384,739.95 |
| Total Shareholders' Equity Attributable to the Parent Company | 20,870,228,922.98 | 19,336,254,922.95 |
| Minority Shareholders' Equity | 64,448,683.31 | 67,576,527.03 |
| Total Shareholders' Equity | 20,934,677,606.29 | 19,403,831,449.98 |
| Total Liabilities and Shareholders' Equity | 33,553,242,598.08 | 30,897,007,799.54 |
Legal representative: Hu Baifan Chief accountant: Shi Guanqun Accounting officer: Wang Xiaobi
2.Consolidated Income Statement for Q1~Q3
Unit: RMB
| Item | Q1-Q3 2021 | Q1-Q3 2020 |
| I. Total Operating Revenue | 10,516,296,574.90 | 7,473,328,667.93 |
| Including: Operating Revenue | 10,516,296,574.90 | 7,473,328,667.93 |
| Interest Income | ||
| Earned Premiums | ||
| Service Charge and Commission Income | ||
| II. Total Operating Cost | 6,768,859,660.10 | 4,192,761,471.86 |
| Including: Operating Cost | 5,593,507,476.30 | 3,105,496,979.08 |
| Interest Expenditures | ||
| Service Charge and Commission Expenses | ||
| Surrender Value | ||
| Net Claims Paid | ||
| The Net Amount Withdrawn for Insurance Liability Reserves | ||
| Policyholder Dividend Expense | ||
| Reinsurance Cost | ||
| Taxes and Surcharges | 88,269,874.64 | 78,651,633.12 |
| Sales Expenses | 88,864,094.38 | 202,501,589.66 |
| Administration Expenses | 291,525,770.12 | 285,890,945.67 |
| Research and Development Expenses | 520,062,056.43 | 349,125,641.83 |
| Financial Expenses | 186,630,388.23 | 171,094,682.50 |
| Including: Interest Expenses | 246,262,466.47 | 168,194,178.47 |
| Interest Income | 116,114,608.98 | 30,876,044.12 |
| Add: Other Income | 100,525,022.26 | 77,498,524.71 |
| Investment Income (Mark "-" for Loss) | 59,117,130.85 | 85,605,026.08 |
| Including: Investment Income from Affiliates and Joint Ventures | 28,674,263.48 | 9,221,649.84 |
| Profits from Recognition Termination of Financial Assets at Amortized Cost | ||
| Exchange Gains (Mark "-" for Losses) | ||
| Profit of Net Exposure Hedging (Mark "-" for Loss) | ||
| Incomes from Changes in Fair Value (losses marked with "-") | 33,837,177.78 | 12,991,781.93 |
| Credit Impairment Losses (Mark "-" for Loss) | -24,034,277.06 | -37,826,152.74 |
| Asset Impairment Losses (Mark "-" for Loss) | -10,877,539.41 | -3,392,646.29 |
| Asset Disposal Income (Mark "-" for Loss) | 282,056.79 | 3,060,150.86 |
| Item | Q1-Q3 2021 | Q1-Q3 2020 |
| III. Operating Profit (Mark "-" for Loss) | 3,906,286,486.01 | 3,418,503,880.62 |
| Add: Non-operating Revenues | 11,062,337.09 | 1,364,340.95 |
| Less: Non-operating Expenses | 3,786,996.91 | 14,494,924.83 |
| IV. Total Profit (Mark "-" for Total Loss) | 3,913,561,826.19 | 3,405,373,296.74 |
| Less: Income Tax Expense | 533,069,053.25 | 460,864,439.19 |
| V. Net Profit (Mark "-" for Net Loss) | 3,380,492,772.94 | 2,944,508,857.55 |
| (I) Classified by Operation Continuity | ||
| 1. Net Profit as a Going Concern (Mark "-" for Net Loss) | 3,380,492,772.94 | 2,944,508,857.55 |
| 2. Net Profit of Discontinued Operation (Mark "-" for Net Loss) | ||
| (II) Classified by the Attribution of Ownership | ||
| 1. Net Profit Attributable to the Parent Company's Owner | 3,366,090,298.07 | 2,935,522,918.78 |
| 2. Minority Shareholders' Profit and Loss | 14,402,474.87 | 8,985,938.77 |
| VI. Net Amount of Other Comprehensive Incomes after Tax | -15,034,580.49 | -9,714,908.71 |
| Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner | -10,409,122.40 | -11,027,716.49 |
| (I) Other Comprehensive Income that cannot be Reclassified as P/L | ||
| 1. Re-measure the Variation of the Defined Benefit Plan | ||
| 2. Other Comprehensive Income that cannot be Transferred to P/L under the Equity Method | ||
| 3. Changes in the Fair Value of Investment in Other Equity Instruments | ||
| 4. Changes in the Fair Value of the Credit Risk of the Enterprise | ||
| 5. Others | ||
| (II) Other Comprehensive Income that will be Reclassified as P/L | -10,409,122.40 | -11,027,716.49 |
| 1. Other Comprehensive Income that can be Transferred to P/L under the Equity Method | ||
| 2. Changes in the Fair Value of Investment in Other Creditor's Rights | ||
| 3. Financial Assets Reclassified into Other Comprehensive Income | ||
| 4. Provisions for the Credit Impairment of Investment in Other Creditor's Rights | ||
| 5. Cash Flow Hedge Reserves | ||
| 6. Currency Translation Difference | -10,409,122.40 | -11,027,716.49 |
| 7. Others |
| Item | Q1-Q3 2021 | Q1-Q3 2020 |
| Net Amount of Other Comprehensive Incomes After Tax Attributable to Minority Shareholders | -4,625,458.09 | 1,312,807.78 |
| VII. Total Comprehensive Income | 3,365,458,192.45 | 2,934,793,948.84 |
| Total Comprehensive Income Attributable to the Parent Company's Owner | 3,355,681,175.67 | 2,924,495,202.29 |
| Total Comprehensive Income Attributable to Minority Shareholders | 9,777,016.78 | 10,298,746.55 |
| VIII. Earnings per Share: | ||
| (I) Basic Earnings per Share | 1.31 | 1.14 |
| (II) Diluted Earnings per Share | 1.31 | 1.14 |
In the case of enterprise consolidation under the same control in the current period, the net profit realized by the consolidated partybefore consolidation was RMB 0.00 and the net profit realized by the consolidated party in the previous period was RMB-1,880,134.45.Legal representative: Hu Baifan Chief accountant: Shi Guanqun Accounting officer: Wang Xiaobi
3.Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2021 | Q1~Q3 2020 |
| I. Cash Flow Generated by Operational Activities: | ||
| Cash from Sales of Merchandise and Provision of Services | 10,346,764,132.29 | 7,767,181,131.74 |
| Net Increase in Customer's Bank Deposits and Interbank Deposits | ||
| Net Increase in Loan from the Central Bank | ||
| Net Increase in Loan from Other Financial Institutions | ||
| Cash Arising from Receiving Premiums for the Original Insurance Contract | ||
| Net Amount Arising from Reinsurance Business | ||
| Net Increase in Deposits and Investments from Policyholders | ||
| Cash Arising from Interests, Service Charges and Commissions | ||
| Net Increase in Loan from Banks and Other Financial Institutions | ||
| Net Increase in Repurchase Business Funds | ||
| Net Amount of Cash Received from the Vicariously Traded Securities | ||
| Tax Refund | 663,717,474.82 | 520,378,134.92 |
| Other Cash Receipts Relating to Operating Activities | 262,072,642.42 | 98,073,756.23 |
| Subtotal of Cash Inflow from Operational Activities | 11,272,554,249.53 | 8,385,633,022.89 |
| Cash Paid for Merchandise and Services | 5,554,579,782.28 | 4,254,308,544.33 |
| Net Increase in Loans and Advances to Customers | ||
| Net Increase in Deposits with Central Bank and Other Financial Institutions | ||
| Cash Paid for Original Insurance Contract Claims | ||
| Net Increase of Funds Lent | ||
| Cash Paid for Interests, Service Charges and Commissions | ||
| Cash Paid for Policy Dividends | ||
| Cash Paid to and for Employees | 1,119,035,556.90 | 919,294,780.21 |
| Cash Paid for Taxes and Surcharges | 683,137,156.56 | 815,505,846.76 |
| Other Cash Payments Relating to Operating Activities | 84,977,263.27 | 351,842,665.73 |
| Subtotal of Cash Outflow from | 7,441,729,759.01 | 6,340,951,837.03 |
| Item | Q1~Q3 2021 | Q1~Q3 2020 |
| Operational Activities | ||
| Net Cash Flow Generated by Operating Activities | 3,830,824,490.52 | 2,044,681,185.86 |
| II. Cash Flow from Investment Activities: | ||
| Cash Arising from Disposal of Investments | 2,276,074.28 | |
| Cash Arising from Investment Incomes | 41,295,727.22 | 77,229,529.45 |
| Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 12,356,503.13 | 3,645,923.49 |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | ||
| Other Cash Receipts Relating to Investing Activities | 1,800,000,000.00 | 3,928,094,561.00 |
| Subtotal of Cash Inflow from Investment Activities | 1,853,652,230.35 | 4,011,246,088.22 |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 2,165,507,011.52 | 1,595,414,508.77 |
| Cash Paid for Investments | 20,886,127.90 | |
| Net Increase in Pledge Loans | ||
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | 83,904,479.79 | 38,433,508.94 |
| Other Cash Payments Relating to Investing Activities | 1,600,000,000.00 | 1,904,898,740.00 |
| Subtotal of Cash Outflows from Investment Activities | 3,849,411,491.31 | 3,559,632,885.61 |
| Net Cash Flow Generated by Investment Activities | -1,995,759,260.96 | 451,613,202.61 |
| III. Cash Flow from Financing Activities: | ||
| Cash Arising from Absorbing Investments | ||
| Including: Cash Arising from Subsidiaries Absorbing Investments by Minority Shareholders | ||
| Cash Arising from Loan | 4,848,268,656.73 | 4,181,948,571.45 |
| Other Cash Receipts Relating to Financing Activities | 50,000,000.00 | |
| Subtotal of Cash Inflow from Financing Activities | 4,848,268,656.73 | 4,231,948,571.45 |
| Cash Paid for Borrowings Repayment | 3,411,549,400.71 | 3,519,896,904.97 |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 1,771,907,984.48 | 1,251,029,735.30 |
| Including: Dividends and Profits Paid to Minority Shareholders by Subsidiaries | ||
| Other Cash Payments Relating to Financing Activities | 7,086,761.24 | 22,646,296.92 |
| Subtotal of Cash Outflow from | 5,190,544,146.43 | 4,793,572,937.19 |
| Item | Q1~Q3 2021 | Q1~Q3 2020 |
| Financing Activities | ||
| Net Cash Flow Generated by Financing Activities | -342,275,489.70 | -561,624,365.74 |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | -41,320,150.82 | -7,423,210.11 |
| V. Net Increase in Cash and Cash Equivalents | 1,451,469,589.04 | 1,927,246,812.62 |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 4,669,306,776.09 | 3,213,557,815.42 |
| VI. Cash and Cash Equivalents at the End of the Period | 6,120,776,365.13 | 5,140,804,628.04 |
II Explanation of adjustment of financial statements
1.The first implementation of new lease criteria from 2021 to adjust the relevant items of the financialstatements implemented at the beginning of the year for the first time
√ Applicable. □Not applicable
Whether the accounts of the balance sheet at the beginning of the year shall be adjusted
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
| Item | December 31, 2020 | January 1, 2021 | Adjusted Amount |
| Current Assets: | |||
| Cash and Bank Balances | 4,927,657,236.24 | 4,927,657,236.24 | |
| Deposit Reservation for Balance | |||
| Loans to Banks and Other Financial Institutions | |||
| Trading Financial Assets | 852,227,964.70 | 852,227,964.70 | |
| Derivative Financial Assets | |||
| Notes Receivable | 332,064,366.59 | 332,064,366.59 | |
| Accounts Receivable | 1,930,930,930.01 | 1,930,930,930.01 | |
| Receivables Financing | 295,393,346.17 | 295,393,346.17 | |
| Prepayments | 116,063,557.59 | 116,063,557.59 | |
| Premium Receivable | |||
| Reinsurance Accounts Receivable | |||
| Reinsurance Contract Reserves Receivable | |||
| Other Receivables | 178,610,951.64 | 178,610,951.64 | |
| Including: Interest Receivable | |||
| Dividends Receivable | |||
| Buying Back the Sale of Financial Assets | |||
| Inventories | 3,117,042,558.78 | 3,117,042,558.78 | |
| Contract Assets | |||
| Holding for-sale Assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | 1,777,569,473.96 | 1,777,569,473.96 | |
| Subtotal of Current Assets | 13,527,560,385.68 | 13,527,560,385.68 | |
| Non-current Assets: | |||
| Granting of Loans and Advances | |||
| Investment in Creditor's Rights |
| Item | December 31, 2020 | January 1, 2021 | Adjusted Amount |
| Investment in Other Creditor's Rights | |||
| Long-term Receivables | |||
| Long-term Equity Investment | 343,378,891.18 | 343,378,891.18 | |
| Investment in Other Equity Instruments | 22,998,147.55 | 22,998,147.55 | |
| Other Non-current Financial Assets | |||
| Investment Property | |||
| Fixed Assets | 13,914,151,215.54 | 13,914,151,215.54 | |
| Construction in Progress | 1,325,545,420.56 | 1,325,545,420.56 | |
| Productive Biological Assets | |||
| Oil and Gas Assets | |||
| Right-of-use Assets | 3,604,870.23 | 3,604,870.23 | |
| Intangible Assets | 1,407,067,129.87 | 1,407,067,129.87 | |
| Development Expenditure | |||
| Goodwill | |||
| Long-term Deferred Expenses | 13,369,412.48 | 13,369,412.48 | |
| Deferred Income Tax Assets | 65,143,706.00 | 65,143,706.00 | |
| Other Non-current Assets | 277,793,490.68 | 277,793,490.68 | |
| Subtotal of Non-current Assets | 17,369,447,413.86 | 17,373,052,284.09 | 3,604,870.23 |
| Total Assets | 30,897,007,799.54 | 30,900,612,669.77 | 3,604,870.23 |
| Current Liabilities: | |||
| Short-term Borrowings | 2,363,525,192.53 | 2,363,525,192.53 | |
| Loan from the Central Bank | |||
| Loan from Banks and Other Financial Institutions | |||
| Transactional Financial Liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 497,644,517.23 | 497,644,517.23 | |
| Accounts Payable | 1,463,728,316.04 | 1,463,728,316.04 | |
| Received Prepayments | |||
| Contract Liabilities | 56,302,537.11 | 56,302,537.11 | |
| Financial Assets Sold for Repurchase | |||
| Deposit Taking and Interbank Deposit | |||
| Receiving from |
| Item | December 31, 2020 | January 1, 2021 | Adjusted Amount |
| Vicariously Traded Securities | |||
| Receiving from Vicariously Sold Securities | |||
| Payroll payable | 322,646,061.45 | 322,646,061.45 | |
| Tax Payable | 268,864,472.38 | 268,864,472.38 | |
| Other Payables | 129,839,228.89 | 129,839,228.89 | |
| Including: Interest Payable | |||
| Dividends Payable | |||
| Service Charge and Commission Payable | |||
| Reinsurance Accounts Payable | |||
| Holding for-sale Liabilities | |||
| Non-current Liabilities Due within 1 Year | 1,275,888,293.32 | 1,275,888,293.32 | |
| Other Current Liabilities | 4,956,463.49 | 4,956,463.49 | |
| Subtotal of Current Liabilities | 6,383,395,082.44 | 6,383,395,082.44 | |
| Non-current Liabilities: | |||
| Insurance Contract Reserves | |||
| Long-term Borrowings | 4,136,875,354.33 | 4,136,875,354.33 | |
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | 3,604,870.23 | 3,604,870.23 | |
| Long-term Payables | |||
| Long-term Payroll Payable | |||
| Expected Liabilities | |||
| Deferred Income | 873,066,181.34 | 873,066,181.34 | |
| Deferred Income Tax Liabilities | 99,839,731.45 | 99,839,731.45 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 5,109,781,267.12 | 5,113,386,137.35 | 3,604,870.23 |
| Total Liabilities | 11,493,176,349.56 | 11,496,781,219.79 | 3,604,870.23 |
| Shareholders' Equity: | |||
| Share Capital | 2,148,662,300.00 | 2,148,662,300.00 | |
| Other Equity Instruments | |||
| Including: |
| Item | December 31, 2020 | January 1, 2021 | Adjusted Amount |
| Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 4,560,522,556.84 | 4,560,522,556.84 | |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | 27,803,829.31 | 27,803,829.31 | |
| Special Reserves | 9,550,346.85 | 9,550,346.85 | |
| Surplus Reserves | 1,074,331,150.00 | 1,074,331,150.00 | |
| General Risk Reserves | |||
| Undistributed Profits | 11,515,384,739.95 | 11,515,384,739.95 | |
| Total Shareholders' Equity Attributable to the Parent Company | 19,336,254,922.95 | 19,336,254,922.95 | |
| Minority Shareholders' Equity | 67,576,527.03 | 67,576,527.03 | |
| Total Shareholders' Equity | 19,403,831,449.98 | 19,403,831,449.98 | |
| Total Liabilities and Shareholders' Equity | 30,897,007,799.54 | 30,900,612,669.77 | 3,604,870.23 |
Explanation of Adjustment:
According to Accounting Standards for Enterprises No.21 – Lease (CaiKuai [2018] No.35) issued by the Ministry ofFinance in 2018, the Company has implemented the new lease criteria and made adjustment to the relevant items in thefinancial statements as of January 1, 2021.
2. Explanation of data comparison for early stage of retroactive adjustment due to first implementation ofthe new lease criteria from 2021
□ Applicable √ Not applicable
III Independent Auditor’s ReportWhether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
Board of Directors of Zhejiang NHU Company Ltd
October 29,2021