HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
HAINAN PEARL RIVER HOLDINGS CO., LTD.
THIRD QUARTER REPORT 2017
October 2017
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Section I Important Statements
The Board of Directors, the Supervisory Committee, directors, supervisors and senior
management staff of HaiNan Pearl River Holdings Co., Ltd. (hereinafter referred to as “the
Company”) warrant that the information carried in this report is factual, accurate and
complete, without any false record, misleading statement or material omission. And they shall
be jointly and severally liable for that.
Director Xue Chunlei didn’t attend the board session in person due to the cause of work,
authorizing director Zhao Yinhu to attend and vote. Other directors have attended the board
session for reviewing this report in person.
Wang Chunli, company principal, Guan Ying, chief of the accounting work and Guan Ying,
head of the accounting department (head of accounting) of the Company, hereby confirm that
the Financial Report carried in this Report is factual, accurate and complete.
This Report is prepared in both Chinese and English. Should there be any discrepancy
between the two versions, the Chinese version shall prevail.
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Section II Company Fundamentals
I Key Consolidated Financail Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
√Yes □No
Reason:
Business merger under the same control
December 31, 2016 Change
September 30, 2017
Before adjustment After adjustment After adjustment
Total assets (RMB) 4,747,421,920.84 1,385,469,635.17 5,007,343,324.00 -5.19%
Equity attributable to owners of the
1,680,315,717.61 65,088,302.88 2,032,242,890.44 -17.32%
parent (RMB)
January-September
July-September 2017 YoY change YoY change
Net sales (RMB) 2,232,700,520.70 -22.04% 5,515,262,797.63 -7.79%
Net margin attributable to
shareholders of the Company 42,164,080.63 14.41% 113,833,212.48 60.02%
(RMB)
Net margin attributable to
shareholders of the Company
-18,544,858.72 -148.90% 5,766,539.70 116.35%
before exceptional gains and losses
(RMB)
Net cash from operating activities
-- -- -1,071,443,766.31 -278.96%
(RMB)
Basic earnings per share
0.07 16.67% 0.18 63.64%
(RMB/share)
Diluted earnings per share
0.07 16.67% 0.18 63.64%
(RMB/share)
Weighted average return on equity
2.05% -0.08% 5.45% 1.38%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Capital occupation charges on non-financial enterprises that are 16,810,053.35
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
charged to the profit/loss for the Reporting Period
Reporting Period net profit/loss of subsidiaries acquired through
business mergers under the same control from period-beginnings 117,422,986.25
to merger dates
Non-operating income and expense other than above -1,007,624.03
Minority interests effects (after tax) 25,158,742.79
Total 108,066,672.78 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gains and
Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent
gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of preference shareholders
Total number of common
30,806 with resumed voting rights at period-end (if
shareholders at period-end
any)
Top 10 shareholders
Nature of Shareholding Total shares held Restricted shares Pledged or frozen shares
Name of shareholder
shareholder percentage at period-end held at period-end Status Number
BEIJING GRAIN GROUP CO., State-owned
28.95% 123,561,963
LTD. corporation
Foreign
LI SHERYN ZHAN MING 4.99% 21,282,800
individual
Domestic
MEI JIANYING 0.61% 2,583,803
individual
Foreign
YAO LIYUAN 0.46% 1,950,000
individual
Domestic
ZHANG XIAOXIA 0.46% 1,949,250
individual
Domestic
WANG XIAOXING 0.43% 1,836,500
individual
CHEN OUQIN Domestic 0.39% 1,652,679
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
individual
Domestic
WANG DAO 0.38% 1,633,300
individual
Domestic
ZHONG YI 0.38% 1,604,283
individual
Domestic
XU ZHEN 0.37% 1,595,000
individual
Top 10 non-restricted shareholders
Type of stock
Name of shareholder Non-restricted shares held at period-end
Type Number
BEIJING GRAIN GROUP CO.,
123,561,963 RMB common stock 123,561,963
LTD.
Domestically listed stock for
LI SHERYN ZHAN MING 21,282,800 21,282,800
foreign investors
MEI JIANYING 2,583,803 RMB common stock 2,583,803
Domestically listed stock for
YAO LIYUAN 1,950,000 1,950,000
foreign investors
Domestically listed stock for
ZHANG XIAOXIA 1,949,250 1,949,250
foreign investors
WANG XIAOXING 1,836,500 RMB common stock 1,836,500
CHEN OUQIN 1,652,679 RMB common stock 1,652,679
WANG DAO 1,633,300 RMB common stock 1,633,300
ZHONG YI 1,604,283 RMB common stock 1,604,283
XU ZHEN 1,595,000 RMB common stock 1,595,000
Among shareholders above, there exists no related-party relationship between the principal
shareholder and other shareholders of the Company. Nor they are acting-in-concert parties as
Related or acting-in-concert parties prescribed in the Information Disclosure Administrative Methods for Changes in
among shareholders above Shareholding of Shareholders of Listed Companies. And it is unknown whether there is
related-party relationship among other shareholders and whether they are prescribed parties
with concerted action.
Shareholder Wang Xiaoxing held 1,836,500 shares in the Company through the account of
CSRC in Soochow Securities Co., Ltd.
Top 10 common shareholders Shareholder Zhong Yi held 1,604,283 shares in the Company through the account of
conducting securities margin trading CSRC in Eastmoney Securities Co., Ltd.
(if any) Shareholder Wang Dao held 301,900 shares in the Company through his account of CSRC
and held 1,331,400 shares in the Company through his common stock account in Cinda
Securities Co., Ltd.
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Section III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
1. Accounts receivable on September 30, 2017 (3.68% of the net sales during the period from July to September
2017) increased by RMB0.12 billion (143.50%) from the December 31, 2016 due to RMB0.12 billion of accounts
receivables recognized in September 2017 from new strategic customers in the southern markets. As of October
19, 2017, these accounts receivable had all been settled.
2. Prepayments on September 30, 2017 increased by RMB0.25 billion (187.2%) from the December 31, 2016 due
primarily to the arrival at the end of September 2017 of the two shipments of soybean purchased by the subsidiary
Jingliang (Tianjin) Grain & Oil Industry CO. Ltd, which has all been accepted by the end of October 2017 and is
being processed for sale.
3. Interest receivable on September 30, 2017 decreased 67.83% from the December 31, 2016 due primarily to the
interest receivable at the end of 2016 along with the Assets Transfer.
4. Dividends receivable on September 30, 2017 decreased 100% from the December 31, 2016 due primarily to the
dividends receivable at the end of 2016 along with the Assets Transfer.
5. Other current assets on September 30, 2017 decreased 62.66% from the December 31, 2016 due primarily to
decrease in bank wealth management products.
6. Available-for-sale financial assets on September 30, 2017 decreased by RMB10.82 million (35.12%) from the
December 31, 2016 due primarily to the Assets Transfer.
7. Construction in progress on September 30, 2017 decreased 88.99% from the December 31, 2016 due primarily
to the transfer of assets and the shift of Zhejiang Xiaowangzi Food Share Co., Ltd. (“Xiaowangzi Food”)’s
completed production line to fixed assets.
8. Other non-current assets on September 30, 2017 decreased by RMB 4.52 million (100%) from the December 31,
2016 due primarily to the Assets Transfer.
9. Short-term borrowings on September 30, 2017 increased 2113.90% from the December 31, 2016 due primarily
to the borrowings obtained for the purchases in the grease business line for the second half of the year according
to production needs and the market situation.
10. Notes payable on September 30, 2017 increased 66.87% from the December 31, 2016 due primarily to more
letters of credit issued for the more imports’.
11. Accounts payable on September 30, 2017 decreased 84.92% from the December 31, 2016 due primarily to a
decrease of approximately RMB80 million in accounts payable along with the transfer of the related assets, as
well as caused by RMB0.31 billion of accounts payable to suppliers.
12. Advances received on September 30, 2017 decreased 47.01% from the December 31, 2016 amount due
primarily to the Assets Transfer.
13. Payroll payable on September 30, 2017 decreased 90.65% from the December 31, 2016 due primarily to a
decrease in payroll payable along with the Assets Replacement, as well as the payment of last year’s annual
performance salaries in the current year.
14. Taxes payable on September 30, 2017 decreased 96.64% from the December 31, 2016 amount due primarily
to payment of taxes in the current year.
15. Non-current liabilities due within one year on September 30, 2017 decreased 100% from the December 31,
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
2016 due primarily to repayment of due long-term bank loans.
16. Long-term borrowings on September 30, 2017 decreased 100% from the December 31, 2016 due primarily to
the early repayment of long-term bank loans.
17. The year-over-year decrease of 7.79% in net sales during the period，primarily because the net sales during the
corresponding period of last year had included combined revenue of RMB1.997 billion from 14 trade subsidiaries,
which were all transferred in the current period. Regardless of the effects of the said trade subsidiaries, net sales
increased by RMB1.530 billion (38.46%) during the period January through September 2017 compared to the
same period of last year.
18. The year-over-year increase of 97.25% in taxes and surtaxes during the period primarily resulted from the
reclassification of taxes under “administrative expense” as “taxes and surtaxes” according to the Notice of the
Ministry of Finance (Financial Accounting [2016] No. 22) on Printing and Issuing of VAT Accounting Rules.
19. The year-over-year decrease of 71.11% in finance costs compared to the same period of last year primarily
resulted from significantly decreased loan interest as a result of the repayment of loans with high interest rates.
20. The year-over-year increase of RMB21.90 million (1356.34%) in asset impairment losses during the period
January through September 2017 primarily resulted from the bad-debt provisions made, out of prudence, for the
creditor’s rights associated with the assets transferred by the Company during the transition period, as well as the
reversal into capital reserve at the time of the Asset Transfer.
21. The year-over-year decrease of 86.79% in investment income during the period January through September
2017 primarily resulted from the transfer of equity interests in Heilongjiang Longshi Pearl River Media Co., Ltd.
by the Company and the transfer of 14 trade subsidiaries by BGG Food in last year.
22. The year-over-year decrease of 66.27% in non-operating income during the period January through September
2017 primarily resulted from last year’s relocation compensation income.
23. The year-over-year decrease of 70.66% in non-operating expense during the period January through
September 2017 primarily resulted from last year’s relocation expense.
24. The year-over-year decrease of 278.96% in net cash from operating activities during the period January
through September 2017 primarily resulted from the cash used for the purchases in the grease business line for the
second half of the year according to production needs and the market situation.
25. The year-over-year increase of 52.42% in net cash from investing activities during the period January through
September 2017 primarily resulted from BGG Food’s acquisition of a 19% stake in Xiaowangzi Food.
26. The year-over-year increase of 250.43% in net cash from financing activities during the period January
through September 2017 primarily resulted from the borrowings obtained from bank for the purchases in the
grease business line for the second half of the year according to production needs and the market situation.
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
Announcement of significant event Disclosure date Disclosure website
The major assets restructuring of the
Company got Reply from China Securities
Regulatory Commission to HaiNan Pearl Announcement No. 2017-047 on
08/01/2017
River Holdings Co., Ltd.’s Issuing Shares, www.cninfo.com.cn
Purchasing Assets and Raising Supporting
Funds to Beijing Grain Group Co., Ltd.
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
etc. on July 28, 2017.
On September 14, 2017, Beijing Grain
Food Co., Ltd. became the wholly-owned
subsidiary of the Company after
completing the transfer procedures of
assets planned to be put in in the major
assets restructuring. As of September 30,
2017, the delivery of assets planned to be Announcement No. 2017-059 on
09/30/2017
put out excluding a small number of assets www.cninfo.com.cn
whose transfer procedures are still in
progress has been finished. The total
amount of assets that have been settled
(including liabilities) accounts for 93.46%
of that of assets (including liabilities)
planned to be put out at this time.
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period the beginning of
the current year through the end of the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB'0,000
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Proportion of closing Actual
Closing
investment amount in the gain/loss in
Type of derivative investment Beginning date Ending date investment
Company’s closing net assets Reporting
amount
(%) Period
Futures of agricultural products 01/01/2017 09/30/2017 30,241.88 18.00% 7,161.1
Capital source for derivative
Self-raised funds
investment
Lawsuit (if applicable) Naught
Analysis on risks and control
In the Reporting Period, the Company possessed the cash for hedging in futures. All cash has
measures of derivative products held
the physical correspondence which is distributed in forward contracts with good liquidity. The
in the Reporting Period (including
credit risk is low and there will be no default risk. In addition, there will be no risk concerning
but not limited to market risk,
operation and laws because of regulated transactions, rigorous decisions on futures and strict
liquidity risk, credit risk, operation
operation process.
risk, law risk, etc.)
Changes of market prices or fair
values in the Reporting Period of the
The value of futures contracts held by the Company is changing with the price of the futures
invested derivatives. And the analysis
exchange. The price of the futures exchange is broadly representative. And the fair value of
on the fair value of the derivatives
futures contracts will be measured in strict accordance with the settlement methods issued by
should include the specific use
the exchange.
methods and the relevant
assumptions and parameters.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
The Company did not take such measures in the third quarter of the year and has no such plans for now.
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Section IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by HaiNan Pearl River Holdings Co., Ltd.
September 30, 2017
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Cash on hand and at bank 602,618,963.22 652,870,239.91
Settlement reserve
Interbank lendings
Financial assets at fair value through
66,667,426.60
gains/losses
Derivative financial assets
Notes receivable
Accounts receivable 203,373,667.83 83,520,131.60
Prepayments 382,711,901.44 132,969,364.73
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable 1,344,210.00 4,178,348.79
Dividends receivable 260,015.00
Other accounts receivable 387,323,095.97 357,055,607.58
Financial assets purchased under
agreements to resell
Inventories 942,254,413.97 775,376,454.78
Assets held for sale
Non-current assets due within one year
Other current assets 158,625,668.06 424,782,623.76
Total current assets 2,678,251,920.49 2,497,680,212.75
Non-current assets:
Loans and advances to customers
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Available-for-sale financial assets 20,000,000.00 30,824,994.90
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 143,673,669.92 171,465,314.90
Investment property 35,387,907.81 49,490,079.75
Fixed assets 1,249,470,889.94 1,508,710,556.28
Construction in progress 12,046,080.75 109,410,883.57
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 385,249,713.38 403,202,499.05
R&D expense
Goodwill 191,394,422.51 191,394,422.51
Long-term deferred expense 28,910,630.29 29,082,767.56
Deferred income tax assets 3,036,685.75 11,562,156.93
Other non-current assets 4,519,435.80
Total non-current assets 2,069,170,000.35 2,509,663,111.25
Total assets 4,747,421,920.84 5,007,343,324.00
Current liabilities:
Short-term borrowings 1,387,702,144.26 62,681,281.00
Borrowings from Central Bank
Money deposits accepted and inter-bank
deposits
Interbank borrowings
Financial liabilities at fair value through
gains/losses
Derivative financial liabilities
Notes payable 59,004,073.80 35,358,929.55
Accounts payable 69,579,932.09 461,294,581.74
Advances received 310,980,168.69 586,907,614.36
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 4,166,463.40 44,574,235.79
Taxes payable 4,373,517.40 130,157,235.63
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Interest payable 82,740,158.36 90,011,566.90
Dividends payable 3,397,317.01 3,397,317.01
Other accounts payable 523,664,156.33 680,347,428.44
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within one
117,210,181.59
year
Other current liabilities
Total current liabilities 2,445,607,931.34 2,211,940,372.01
Non-current liabilities:
Long-term borrowings 73,666,666.66
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable 14,310,251.15 14,310,251.15
Special payables 1,067,530.32 1,153,176.66
Provisions
Deferred income 81,063,077.48
Deferred income tax liabilities 64,819,485.96 67,598,052.00
Other non-current liabilities 78,848,539.08
Total non-current liabilities 159,045,806.51 237,791,223.95
Total liabilities 2,604,653,737.85 2,449,731,595.96
Owners’ equity:
Share capital 426,745,404.00 426,745,404.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 2,146,453,884.65 2,603,034,269.96
Less: Treasury shares
Other comprehensive income
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Special reserve
Surplus reserve 109,487,064.39 109,487,064.39
Provisions for general risks
Retained earnings -1,002,370,635.43 -1,107,023,847.91
Equity attributable to owners of the parent 1,680,315,717.61 2,032,242,890.44
Minority interests 462,452,465.38 525,368,837.60
Total owners’ equity 2,142,768,182.99 2,557,611,728.04
Total liabilities and owners’ equity 4,747,421,920.84 5,007,343,324.00
Legal representative: Wang Chunli Accounting head for this Report: Guan Ying
Head of the accounting department: Guan Ying
2. Parent Company Balance Sheet
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Cash on hand and at bank 3,881,807.77 33,952,786.37
Financial assets at fair value through
gains/losses
Derivative financial assets
Notes receivable
Accounts receivable 116,589.00 1,032,085.83
Prepayments 50,000,000.00
Interest receivable
Dividends receivable 260,015.00
Other accounts receivable 137,306,365.25 591,785,222.60
Inventories 4,824,035.45 4,824,035.45
Assets held for sale
Non-current assets due within one year
Other current assets
Total current assets 146,128,797.47 681,854,145.25
Non-current assets:
Available-for-sale financial assets 20,000,000.00 30,824,994.90
Held-to-maturity investments
Long-term accounts receivable
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Long-term equity investments 1,970,192,364.05 101,713,800.55
Investment property 6,131,637.03 6,383,667.53
Fixed assets 3,692,597.07 4,019,513.64
Construction in progress
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets
R&D expense
Goodwill
Long-term deferred expense 278,707.32
Deferred income tax assets
Other non-current assets
Total non-current assets 2,000,016,598.15 143,220,683.94
Total assets 2,146,145,395.62 825,074,829.19
Current liabilities:
Short-term borrowings
Financial liabilities at fair value through
gains/losses
Derivative financial liabilities
Notes payable
Accounts payable 2,667,949.70 2,482,949.70
Advances received 38,896.41 38,896.41
Payroll payable 1,767,581.53 1,224,801.48
Taxes payable 1,847,136.15 27,537,449.60
Interest payable 82,468,756.03 82,468,756.03
Dividends payable 3,213,302.88 3,213,302.88
Other accounts payable 406,070,656.80 650,471,361.88
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 498,074,279.50 767,437,517.98
Non-current liabilities:
Long-term borrowings
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 498,074,279.50 767,437,517.98
Owners’ equity:
Share capital 426,745,404.00 426,745,404.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 2,156,922,331.37 546,201,098.01
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 109,487,064.39 109,487,064.39
Retained earnings -1,045,083,683.64 -1,024,796,255.19
Total owners’ equity 1,648,071,116.12 57,637,311.21
Total liabilities and owners’ equity 2,146,145,395.62 825,074,829.19
3. Consolidated Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 2,232,700,520.70 2,863,928,558.65
Including: Net sales 2,232,700,520.70 2,863,928,558.65
Interest revenue
Premium revenue
Fee and commission revenue
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
2. Operating expenses 2,168,695,816.83 2,782,480,015.75
Including: Cost of sales 2,038,177,137.96 2,609,442,165.66
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 14,277,726.11 5,338,188.59
Selling expense 40,680,538.06 64,393,822.04
Administrative expense 35,096,382.98 78,498,045.30
Finance costs 11,712,245.37 23,738,739.51
Asset impairment losses 28,751,786.35 1,069,054.65
Add: Gains on fair value changes (“-”
-5,151,289.48 -45,057,864.31
for losses)
Investment income (“-” for losses) 2,267,152.41 12,817,603.17
Including: Share of gains/losses of
-73,625,389.08 8,035,851.80
associates and joint ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 61,120,566.80 49,208,281.76
Add: Non-operating income 13,045,293.27 54,739,174.77
Including: Gains on disposal of
719.40
non-current assets
Less: Non-operating expense 2,050,620.48 12,329,081.87
Including: Losses on disposal of
63,322.91 3,316,449.88
non-current assets
4. Gross margin (“-” for losses) 72,115,239.59 91,618,374.66
Less: Income tax expense 16,165,559.76 35,095,731.39
5. Net margin (“-” for losses) 55,949,679.83 56,522,643.27
Attributable to owners of the
42,164,080.63 36,853,580.57
parent
Attributable to minority interests 13,785,599.20 19,669,062.70
6. Other comprehensive income, net of
346,332.92
tax
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Other comprehensive income, net
of tax attributable to owners of the 346,332.92
parent
6.1 Other comprehensive
income that will not be reclassified into
gains/losses
6.1.1 Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
6.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
6.2 Other comprehensive
income to be subsequently reclassified 346,332.92
into gains/losses
6.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
6.2.2 Gains/Losses on fair
value changes of available-for-sale 437,582.65
financial assets
6.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective gains/losses
on cash flow hedges
6.2.5 Currency translation
-91,249.73
differences
6.2.6 Other
Other comprehensive income, net
of tax attributable to minority interests
7. Total comprehensive income 55,949,679.83 56,868,976.19
Attributable to owners of the
42,164,080.63 37,199,913.49
parent
Attributable to minority interests 13,785,599.20 19,669,062.70
8. Earnings per share
8.1 Basic earnings per share 0.07 0.06
8.2 Diluted earnings per share 0.07 0.06
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Wang Chunli Accounting head for this Report: Guan Ying
Head of the accounting department: Guan Ying
4. Parent Company Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 0.00 268,164.10
Less: Operating expenses 100,812.20 75,609.15
Taxes and surtaxes 145,225.03 1,923.11
Selling expense
Administrative expense 2,984,720.67 9,051,260.88
Finance costs -10,284,711.37 6,925,259.20
Asset impairment losses 96,843,906.63 165,475,341.33
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for loss) -141,966.40 -44,174.66
Including: Share of gains/losses of
2,205,283.12 -44,174.66
associates and joint ventures
Other income
2. Operating margin (“-” for losses) -89,931,919.56 -181,305,404.23
Add: Non-operating income 11,405,419.77
Including: Gains on disposal of
non-current assets
Less: Non-operating expense 2,868,139.65
Including: Losses on disposal of
1,296,383.08
non-current assets
3. Gross margin (“-” for losses) -89,931,919.56 -172,768,124.11
Less: Income tax expense
4. Net margin (“-” for losses) -89,931,919.56 -172,768,124.11
5. Other comprehensive income, net of
tax
5.1 Other comprehensive income that
will not be reclassified into gains and
losses
5.1.1 Changes in net liabilities or
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
5.2 Other comprehensive income to
be subsequently reclassified into
gains/losses
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
5.2.2 Gains/Losses on fair value
changes of available-for-sale financial
assets
5.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
5.2.4 Effective gains/losses on
cash flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income -89,931,919.56 -172,768,124.11
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 5,515,262,797.63 5,981,423,571.13
Including: Net sales 5,515,262,797.63 5,981,423,571.13
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 5,325,251,308.02 5,969,251,567.71
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Including: Cost of sales 4,946,577,567.18 5,505,312,355.60
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 40,345,029.56 20,453,582.16
Selling expense 133,704,147.54 153,077,792.48
Administrative expense 157,738,308.36 207,877,201.35
Finance costs 23,373,101.68 80,916,103.90
Asset impairment losses 23,513,153.70 1,614,532.22
Add: Gains on fair value changes (“-”
-13,904,516.93 17,929,229.68
for losses)
Investment income (“-” for losses) 11,766,061.71 89,067,706.12
Including: Share of gains/losses of
-74,720,761.50 7,800,927.54
associates and joint ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 187,873,034.39 119,168,939.22
Add: Non-operating income 21,928,324.60 65,009,590.71
Including: Gains on disposal of
186,159.87 2,603,384.48
non-current assets
Less: Non-operating expense 5,739,675.20 19,561,963.96
Including: Losses on disposal of
211,359.46 4,237,010.38
non-current assets
4. Gross margin (“-” for losses) 204,061,683.79 164,616,565.97
Less: Income tax expense 57,511,192.19 56,511,639.74
5. Net margin (“-” for losses) 146,550,491.60 108,104,926.23
Attributable to owners of the
113,833,212.48 71,134,987.70
parent
Attributable to minority interests 32,717,279.12 36,969,938.53
6. Other comprehensive income, net of
346,332.92
tax
Other comprehensive income, net
346,332.92
of tax attributable to owners of the
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
parent
6.1 Other comprehensive
income that will not be reclassified into
gains/losses
6.1.1 Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
6.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
6.2 Other comprehensive
income to be subsequently reclassified 346,332.92
into gains/losses
6.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
6.2.2 Gains/Losses on fair
value changes of available-for-sale 437,582.65
financial assets
6.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective gains/losses
on cash flow hedges
6.2.5 Currency translation
-91,249.73
differences
6.2.6 Other
Other comprehensive income, net
of tax attributable to minority interests
7. Total comprehensive income 146,550,491.60 108,451,259.15
Attributable to owners of the
113,833,212.48 71,481,320.62
parent
Attributable to minority interests 32,717,279.12 36,969,938.53
8. Earnings per share
8.1 Basic earnings per share 0.18 0.11
8.2 Diluted earnings per share 0.18 0.11
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
6. Parent Company Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 2,857.14 889,099.69
Less: Operating expenses 252,030.50 248,976.20
Taxes and surtaxes 212,753.35 4,205,152.57
Selling expense
Administrative expense 10,807,855.19 17,301,260.86
Finance costs -8,270,296.34 45,574,350.57
Asset impairment losses 91,226,030.51 165,502,220.51
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for loss) 74,749,139.55 -203,430.18
Including: Share of gains/losses of
1,276,389.07 -203,430.18
associates and joint ventures
Other income
2. Operating margin (“-” for losses) -19,476,376.52 -232,146,291.20
Add: Non-operating income 920.00 13,861,534.38
Including: Gains on disposal of
2,456,114.61
non-current assets
Less: Non-operating expense 811,971.93 4,670,182.35
Including: Losses on disposal of
1,296,383.08
non-current assets
3. Gross margin (“-” for losses) -20,287,428.45 -222,954,939.17
Less: Income tax expense
4. Net margin (“-” for losses) -20,287,428.45 -222,954,939.17
5. Other comprehensive income, net of
tax
5.1 Other comprehensive income that
will not be reclassified into gains and
losses
5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
5.2 Other comprehensive income to
be subsequently reclassified into
gains/losses
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
5.2.2 Gains/Losses on fair value
changes of available-for-sale financial
assets
5.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
5.2.4 Effective gains/losses on
cash flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income -20,287,428.45 -222,954,939.17
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
7. Consolidated Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in
operating activities:
Cash generated by sale of
5,822,570,435.19 7,358,401,555.49
commodities and rendering of service
Net increase in money deposits from
customers and interbank placements
Net increase in loans from Central
Bank
Net increase in funds borrowed from
other financial institutions
Cash received as premiums of
original insurance contracts
Net cash generated by reinsurance
business
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Net increase in deposits of policy
holders and investment fund
Net increase in disposal of financial
assets at fair value through gains/losses
Interest, fees and commissions
received
Net increase in interbank borrowings
Net increase in funds in repurchase
business
Tax rebates received 9,136,150.48 8,368,786.75
Cash generated by other operating
6,245,333,510.27 724,710,800.94
activities
Subtotal of cash generated by operating
12,077,040,095.94 8,091,481,143.18
activities
Cash paid for goods and services 6,237,205,329.97 6,072,636,338.20
Net increase in loans and advances to
customers
Net increase in funds deposited in
Central Bank and interbank placements
Cash paid for claims of original
insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 316,577,321.67 346,943,686.55
Taxes paid 250,975,642.80 206,074,416.24
Cash used in other operating
6,343,725,567.81 867,125,230.39
activities
Subtotal of cash used in operating
13,148,483,862.25 7,492,779,671.38
activities
Net cash from operating activities -1,071,443,766.31 598,701,471.80
2. Cash generated by or used in
investing activities:
Cash generated by disinvestments 342,702,070.16 508,850,000.00
Cash received as investment income 19,125,768.85 1,691,359.10
Net cash generated by disposal of
fixed assets, intangible assets and other 43,621,239.95 5,246,170.07
long-term assets
Net cash generated by disposal of
125,845,729.40
subsidiaries or other business units
Cash generated by other investing
603,828,188.53
activities
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Subtotal of cash generated by investing
1,009,277,267.49 641,633,258.57
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 29,376,357.42 72,614,758.26
assets
Cash paid for investments 461,400,000.00 713,237,056.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries
212,344,900.00
and other business units
Cash used in other investing
529,501,870.94 2,317,462.49
activities
Subtotal of cash used in investing
1,232,623,128.36 788,169,276.75
activities
Net cash from investing activities -223,345,860.87 -146,536,018.18
3. Cash generated by or used in
financing activities:
Cash received as capital
9,553,070.16
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received as borrowings 1,630,729,869.53 857,454,158.45
Cash generated by issuance of
bonds
Cash generated by other financing
6,783,876,765.24 998,490,709.57
activities
Subtotal of cash generated by financing
8,424,159,704.93 1,855,944,868.02
activities
Repayment of borrowings 375,954,732.20 2,476,309,399.34
Cash paid for interest expenses and
63,040,361.51 56,483,231.02
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority interests
Cash used in other financing
6,735,878,759.62 153,645,262.99
activities
Sub-total of cash used in financing
7,174,873,853.33 2,686,437,893.35
activities
Net cash from financing activities 1,249,285,851.60 -830,493,025.33
4. Effect of foreign exchange rate
252,498.89 534,997.51
changes on cash and cash equivalents
5. Net increase in cash and cash
-45,251,276.69 -377,792,574.20
equivalents
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
Add: Opening balance of cash and
647,870,239.91 893,327,088.78
cash equivalents
6. Closing balance of cash and cash
602,618,963.22 515,534,514.58
equivalents
8. Parent Company Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in
operating activities:
Cash generated by sale of
14,040,000.00
commodities and rendering of service
Tax rebates received
Cash generated by other operating
15,215,693.63 177,503,106.64
activities
Subtotal of cash generated by operating
15,215,693.63 191,543,106.64
activities
Cash paid for goods and services 130,565,200.00
Cash paid to and for employees 3,898,308.75 6,081,680.56
Taxes paid 27,309,480.98 13,640,381.33
Cash used in other operating
8,470,741.08 20,724,434.92
activities
Subtotal of cash used in operating
39,678,530.81 171,011,696.81
activities
Net cash from operating activities -24,462,837.18 20,531,409.83
2. Cash generated by or used in
investing activities:
Cash generated by disinvestments 10,000,000.00 8,000,000.00
Cash received as investment income
Net cash generated by disposal of
fixed assets, intangible assets and other 35,000,000.00 3,060,360.00
long-term assets
Net cash generated by disposal of
subsidiaries or other business units
Cash generated by other investing
240,582.60
activities
Subtotal of cash generated by investing
45,240,582.60 11,060,360.00
activities
Cash paid to acquire fixed assets,
26,549.00
intangible assets and other long-term
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
assets
Cash paid for investments 39,196,600.00
Net cash paid to acquire subsidiaries
and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
39,223,149.00
activities
Net cash from investing activities 45,240,582.60 -28,162,789.00
3. Cash generated by or used in
financing activities:
Cash received as capital
contributions
Cash received as borrowings 29,000,000.00 103,215,780.73
Cash generated by issuance of
bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
29,000,000.00 103,215,780.73
activities
Repayment of borrowings 76,469,598.52 84,282,856.00
Cash paid for interest expenses and
1,659,125.50 7,857,686.85
distribution of dividends or profit
Cash used in other financing
1,720,000.00 587,864.64
activities
Sub-total of cash used in financing
79,848,724.02 92,728,407.49
activities
Net cash from financing activities -50,848,724.02 10,487,373.24
4. Effect of foreign exchange rate
changes on cash and cash equivalents
5. Net increase in cash and cash
-30,070,978.60 2,855,994.07
equivalents
Add: Opening balance of cash and
33,952,786.37 479,720.71
cash equivalents
6. Closing balance of cash and cash
3,881,807.77 3,335,714.78
equivalents
II Auditor’s Report
These financial statements are unaudited.
HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017
HaiNan Pearl River Holdings Co., Ltd.
October 31, 2017
