ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. First Quarter Report 2020
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
FIRST QUARTER REPORT 2020
2020-037
April 2020
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. First Quarter Report 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 Special Economic Zone Real Estate &Properties (Group) Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee thefactuality, accuracy and completeness of the contents of this Report and its summary, andshall be jointly and severally liable for any misrepresentations, misleading statements ormaterial omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Liu Zhengyu, the Chairman of the Board, Chen Maozheng, the General Manager, TangXiaoping, the head for financial affairs, and Qiao Yanjun, the head of the financialdepartment (equivalent to financial manager) hereby guarantee that the Financial Statementscarried in this Report are factual, 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 Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| Q1 2020 | Q1 2019 | Change (%) | |
| Operating revenue (RMB) | 256,842,391.67 | 424,535,370.83 | -39.50% |
| Net profit attributable to the listed company’s shareholders (RMB) | 28,114,908.77 | 84,028,728.24 | -66.54% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | 28,075,623.63 | 84,055,572.77 | -66.60% |
| Net cash generated from/used in operating activities (RMB) | -435,258,963.67 | 217,157,204.59 | -300.43% |
| Basic earnings per share (RMB/share) | 0.0278 | 0.0831 | -66.55% |
| Diluted earnings per share (RMB/share) | 0.0278 | 0.0831 | -66.55% |
| Weighted average return on equity (%) | 0.76% | 2.49% | -1.73% |
| 31 March 2020 | 31 December 2019 | Change (%) | |
| Total assets (RMB) | 4,499,382,506.19 | 4,909,669,536.09 | -8.36% |
| Equity attributable to the listed company’s shareholders (RMB) | 3,695,538,782.58 | 3,666,874,569.99 | 0.78% |
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1 2020 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -17,928.00 | |
| Non-operating income and expense other than the above | 70,308.19 | |
| Less: Income tax effects | 13,095.05 | |
| Total | 39,285.14 | -- |
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 31 March 2020
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 76,443 | 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 Co., Ltd | State-owned legal person | 63.55% | 642,884,262 | |||
| Shandong Gold Financial Holding Capital Management Co., Ltd.－Shandong Gold Financial Holding Sustaining Fund 1 | Domestic non-state-owned legal person | 1.02% | 10,300,000 | |||
| Lu Zhigao | Domestic natural person | 0.32% | 3,246,949 | |||
| Tan Shiqing | Domestic natural person | 0.13% | 1,286,701 | |||
| Yang Shuilian | Domestic natural person | 0.13% | 1,273,700 | |||
| Yang Jianxiong | Domestic natural person | 0.12% | 1,255,750 | |||
| Central Huijin Asset Management Co., Ltd. | State-owned legal person | 0.12% | 1,165,500 | |||
| Peng Wei | Domestic natural person | 0.11% | 1,129,082 | |||
| Wu Haoyuan | Foreign natural person | 0.11% | 1,109,300 | |||
| GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED | Foreign legal person | 0.10% | 1,015,683 | |||
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted shares held | Shares by type | ||||
| Type | Shares | |||||
| Shenzhen Investment Holdings Co., Ltd | 642,884,262 | RMB-denominated ordinary stock | 642,884,262 | |||
| Shandong Gold Financial Holding Capital Management Co., Ltd.－Shandong Gold Financial Holding Sustaining Fund 1 | 10,300,000 | RMB-denominated ordinary stock | 10,300,000 | |||
| Lu Zhigao | 3,246,949 | RMB-denominated ordinary stock | 3,246,949 | |||
| Tan Shiqing | 1,286,701 | RMB-denominated ordinary stock | 1,286,701 | |||
| Yang Shuilian | 1,273,700 | RMB-denominated ordinary stock | 1,273,700 | |||
| Yang Jianxiong | 1,255,750 | Domestically listed foreign stock | 1,255,750 | |||
| Central Huijin Asset Management Co., Ltd. | 1,165,500 | RMB-denominated ordinary stock | 1,165,500 | |||
| Peng Wei | 1,129,082 | RMB-denominated ordinary stock | 1,129,082 | |||
| Wu Haoyuan | 1,109,300 | Domestically listed foreign stock | 1,109,300 | |||
| GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED | 1,015,683 | Domestically listed foreign stock | 1,015,683 | |||
| Related or acting-in-concert parties among the shareholders above | The Company has found no related parties or acting-in-concert parties as defined in the Administrative Measures for Shareholding Changes in Listed Companies among the shareholders above. | |||||
| Top 10 ordinary shareholders involved in securities margin trading (if any) | The fourth shareholder holds all his shares in the Company in his accounts of credit. And the third shareholder holds some of his shares in the Company in such accounts. |
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 Preferred 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
Operating revenue declined 39.50% during Q1 2020 compared to Q1 2019, primarily driven by adecrease in property sales revenue caused by the COVID-19 outbreak.Selling expenses declined 73.92% during Q1 2020 compared to Q1 2019, primarily driven by anearly full stop of marketing activities in Q1 2020 due to the COVID-19 outbreak.Advances from customers rose 59.72% as at 31 March 2020 compared to 31 December 2019,primarily driven by an increase in engineering advances received by subsidiary ZhentongEngineering in Q1 2020.Taxes payable declined 75.42% as at 31 March 2020 compared to 31 December 2019, primarilydriven by the payment of land VAT for the Cuilinyuan project.Net cash generated from operating activities declined 300.43% during Q1 2020 compared to Q12019, primarily driven by a decrease in sales revenue collected and an increase in taxes paid.Net cash generated from investing activities declined 100% during Q1 2020 compared to Q1 2019,primarily driven by the recovery of the principal of a RMB900 million structured deposit with thecorresponding interest on 22 March 2019.II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
Since the controlling shareholder of the Company is planning a significant event that involves theCompany, upon the application to the Shenzhen Stock Exchange, trading in the stocks of theCompany (A-stock under the name of “SPG A” and the symbol of “000029”; B-stock under thename of “SPG B” and the symbol of “200029”) was suspended starting from the opening of 14September 2016. The Company disclosed the Announcement on Share Trading Suspension due toPlanning of Significant Event (No. 2016-022), the Announcement on Continued Share TradingSuspension due to Planning of Significant Event (No. 2016-023) and the Announcement onContinued Share Trading Suspension due to Planning of Significant Event (No. 2016-024) on 14September 2016, 22 September 2016 and 29 September 2016, respectively. Upon ascertainment, theevent constituted a material asset restructuring. The Company disclosed the Announcement onShare Trading Suspension due to Planning of Major Assets Restructuring (No. 2016-025) on 30September 2016 and the Announcement on Signing Cooperation Agreement on Restructuring andListing (No. 2016-027) on 10 October 2016.The Company convened the 33
rd Meeting of the 7
thBoard of the Directors on 11 November 2016,which the Proposal on Continued Share Trading Suspension due to Planning of Major AssetsRestructuring was reviewed and approved. For details, see the Announcement on Continued ShareTrading Suspension after Expiration of Period of Share Trading Suspension due to Planning ofMajor Assets Restructuring (No. 2016-039) disclosed on 14 November 2016.
The Company convened the 1
st
Extraordinary General Meeting of 2016 on 12 December 2016, onwhich the Proposal on Continued Share Trading Suspension due to Planning of Major AssetsRestructuring was reviewed and approved. For details, see the Announcement on Application forContinued Share Trading Suspension after Expiration of Period of Share Trading Suspension dueto Planning of Major Assets Restructuring (No. 2016-047) disclosed on 13 December 2016.The Company held an online illustration meeting to investors on 10 March 2017, communicatingthis major assets restructuring with them and answering questions that they were generallyconcerned about with the information allowed to be disclosed. For details, see the Announcement onOnline Illustration Meeting to Investors (No. 2017-012) disclosed on 11 March 2017.On 14 December 2019, the Company disclosed the Announcement on Signing the SupplementaryAgreement VI of the Cooperation Agreement governing Restructuring and Listing (No. 2019-090),which extends the exclusivity period and validity period stipulated in the restructuring cooperationagreement to 31 December 2020.To ensure the smooth progress of this major assets restructuring, prevent abnormal fluctuations inthe prices of its stocks and protect the rights and interests of its non-controlling interests, theCompany has applied to the Shenzhen Stock Exchange for continued share trading suspension forno more than 1 month as of 14 April 2020 and expects to disclose the major assets restructuringplan or report according to the requirements of the Standards for the Contents and Formats ofInformation Disclosure by Companies Offering Securities to the Public No. 26—Major AssetsRestructuring of Listed Companies prior to 14 May 2020. For details, see the Announcement onDelay of Share Trading Resumption of Planning of Major Assets Restructuring (No. 2020-028)disclosed on 14 April 2020.During the share trading suspension period, the Company shall disclose the progress of this majorassets restructuring at least every five trading days in strict accordance with the requirements ofapplicable laws and regulations. At present, this major assets restructuring is proceeding smoothly.This major assets restructuring is subject to great uncertainty. Therefore, investors are kindlyreminded to pay attention to possible investment risk.
| Summary of the significant event | Disclosure date | Index to the related announcement |
| Delay of share trading resumption due to the major assets restructuring | 14 April 2020 | Announcement on Delay of Share Trading Resumption due to the Major Assets Restructuring in Planning disclosed on www.cninfo.com.cn |
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 Operating Performance Forecast for H1 2020Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as explanation ofwhy:
√ Applicable □ Not applicable
Forecast of operating results: Significant year-over-year decreasesType of forecast data: Interval data
| January-June 2020 | January-June 2019 | Change | ||||||
| Equity attributable to shareholders of the listed company (RMB’0,000) | 8,000 | -- | 12,000 | 33,315.58 | Down | -75.99% | -- | -63.98% |
| Basic earnings per share (RMB /share) | 0.0791 | -- | 0.1186 | 0.3293 | Down | -75.98% | -- | -63.98% |
| Note | Affected by COVID-19 epidemic, the sales carryforwards of the Company’s real estate decreased year on year. | |||||||
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Cash Entrusted for Wealth Management
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.VIII Communications with the Investment Community such as Researches, Inquiries andInterviews during the Reporting Period
√ Applicable □ Not applicable
| Date | Way of communication | Type of communication party | Index to main information communicated |
| 13 January 2020 | By phone | Individual | Asked about the progress of the assets restructuring and the development and sales of property projects, the annual operating, with no written materials provided by the Company |
| 22 January 2020 | By phone | Individual | Asked about the progress of the assets restructuring and the fundamentals of the Company, with no written materials provided by the Company |
| 2 March 2020 | By phone | Individual | Asked about the progress of the assets restructuring, the annual operating results and the expected disclosure date of the annual report, with no written materials provided by the Company |
| 5 March 2020 | By phone | Individual | Asked about the progress of assets restructuring and share trading resumption time of the Company, with no written materials provided by the Company |
| 16 March 2020 | By phone | Individual | Asked about the progress of assets restructuring and share trading resumption time of the Company, with no written materials provided by the Company |
| 19 March 2020 | By phone | Individual | Asked about the progress of the assets restructuring and the fundamentals of the Company, with no written materials provided by the Company |
| 26 March 2020 | By phone | Individual | Asked about the progress of the assets restructuring and plan and arrangement, with no written materials provided by the Company |
| 31 March 2020 | By phone | Individual | Asked about the progress of the assets restructuring, reason for long-time trading suspension and expected share trading resumption time, with no written materials provided by the Company |
IX Irregularities in the 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.
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
31 March 2020
Unit: RMB
| Item | 31 March 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 2,075,981,316.46 | 2,511,140,445.35 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 67,855,222.99 | 62,059,055.68 |
| Accounts receivable financing | ||
| Prepayments | 5,863,208.45 | 219,948.17 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 22,301,519.57 | 28,275,228.26 |
| Including: Interest receivable | ||
| Dividends receivable | 1,052,192.76 | 1,052,192.76 |
| Financial assets purchased under resale agreements | ||
| Inventories | 1,493,846,098.94 | 1,462,229,048.18 |
| Contractual assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 105,408,753.00 | 102,781,855.48 |
| Total current assets | 3,771,256,119.41 | 4,166,705,581.12 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 469,838.65 | 469,838.65 |
| Investments in other equity instruments | 32,890,635.69 | 33,126,730.04 |
| Other non-current financial assets | ||
| Investment property | 625,480,049.40 | 632,241,900.20 |
| Fixed assets | 29,909,411.40 | 30,522,035.11 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Use rights assets | ||
| Intangible assets | ||
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 157,951.27 | 162,125.72 |
| Deferred income tax assets | 39,218,500.37 | 46,441,325.25 |
| Other non-current assets | ||
| Total non-current assets | 728,126,386.78 | 742,963,954.97 |
| Total assets | 4,499,382,506.19 | 4,909,669,536.09 |
| Current liabilities: | ||
| Short-term borrowings | 50,380,946.52 | 51,647,260.17 |
| Borrowings from the central bank | ||
| Interbank loans obtained | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 181,369,294.21 | 244,224,478.46 |
| Advances from customers | 254,726,724.92 | 159,482,510.43 |
| Contractual liabilities | ||
| Financial assets sold under repurchase agreements |
| Customer deposits and interbank deposits | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Payroll payable | 42,386,925.57 | 53,909,576.49 |
| Taxes payable | 143,938,430.44 | 585,700,815.36 |
| Other payables | 259,683,895.05 | 277,319,174.53 |
| Including: Interest payable | 16,535,277.94 | 16,535,277.94 |
| Dividends payable | ||
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 932,486,216.71 | 1,372,283,815.44 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | 7,975,195.54 | 7,499,192.92 |
| Long-term payroll payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 4,903,293.58 | 4,903,293.58 |
| Other non-current liabilities | ||
| Total non-current liabilities | 12,878,489.12 | 12,402,486.50 |
| Total liabilities | 945,364,705.83 | 1,384,686,301.94 |
| Owners’ equity: | ||
| Share capital | 1,011,660,000.00 | 1,011,660,000.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 978,244,910.11 | 978,244,910.11 |
| Less: Treasury stock | ||
| Other comprehensive income | 21,380,307.95 | 20,831,004.13 |
| Specific reserve | ||
| Surplus reserves | 191,222,838.94 | 191,222,838.94 |
| General reserve | ||
| Retained earnings | 1,493,030,725.58 | 1,464,915,816.81 |
| Total equity attributable to owners of the Company as the parent | 3,695,538,782.58 | 3,666,874,569.99 |
| Non-controlling interests | -141,520,982.22 | -141,891,335.84 |
| Total owners’ equity | 3,554,017,800.36 | 3,524,983,234.15 |
| Total liabilities and owners’ equity | 4,499,382,506.19 | 4,909,669,536.09 |
Legal representative: Liu Zhengyu Head for financial affairs: Tang XiaopingHead of the financial department: Qiao Yanjun
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 March 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 1,721,050,662.69 | 1,967,688,122.55 |
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 585,081.41 | 156,935.84 |
| Accounts receivable financing | ||
| Prepayments | 200,000.00 | 200,000.00 |
| Other receivables | 1,114,451,965.99 | 835,275,498.69 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Inventories | 400,772,626.44 | 419,453,091.86 |
| Contractual assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 417,291.38 | 407,560.64 |
| Total current assets | 3,237,477,627.91 | 3,223,181,209.58 |
| Non-current assets: | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 150,676,516.92 | 150,676,516.92 |
| Investments in other equity instruments | 13,396,131.37 | 13,229,501.03 |
| Other non-current financial assets | ||
| Investment property | 516,315,435.53 | 522,038,731.16 |
| Fixed assets | 18,980,278.57 | 19,586,720.47 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Use rights assets | ||
| Intangible assets | ||
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | ||
| Deferred income tax assets | 136,142.81 | 162,125.72 |
| Other non-current assets | 20,975,294.54 | 20,975,294.54 |
| Total non-current assets | 720,479,799.74 | 726,668,889.84 |
| Total assets | 3,957,957,427.65 | 3,949,850,099.42 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 101,027,919.97 | 103,915,931.14 |
| Advances from customers | 61,448,878.38 | 59,409,454.38 |
| Contractual liabilities | ||
| Payroll payable | 25,525,958.33 | 25,544,403.23 |
| Taxes payable | 135,449,969.53 | 143,434,273.95 |
| Other payables | 179,738,349.54 | 190,666,487.82 |
| Including: Interest payable | 16,535,277.94 | 16,535,277.94 |
| Dividends payable | ||
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 503,191,075.75 | 522,970,550.52 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term payroll payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 1,295,046.51 | 1,295,046.51 |
| Other non-current liabilities | ||
| Total non-current liabilities | 1,295,046.51 | 1,295,046.51 |
| Total liabilities | 504,486,122.26 | 524,265,597.03 |
| Owners’ equity: | ||
| Share capital | 1,011,660,000.00 | 1,011,660,000.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 964,711,931.13 | 964,711,931.13 |
| Less: Treasury stock | ||
| Other comprehensive income | 1,088,756.11 | 922,125.77 |
| Specific reserve |
| Surplus reserves | 168,093,225.53 | 168,093,225.53 |
| Retained earnings | 1,307,917,392.62 | 1,280,197,219.96 |
| Total owners’ equity | 3,453,471,305.39 | 3,425,584,502.39 |
| Total liabilities and owners’ equity | 3,957,957,427.65 | 3,949,850,099.42 |
3. Consolidated Income Statement
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Revenue | 256,842,391.67 | 424,535,370.83 |
| Including: Operating revenue | 256,842,391.67 | 424,535,370.83 |
| Interest income | ||
| Premium income | ||
| Handling charge and commission income | ||
| 2. Costs and expenses | 216,220,676.90 | 325,163,686.57 |
| Including: Cost of sales | 165,557,827.24 | 202,277,666.23 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Surrenders | ||
| Net claims paid | ||
| Net amount provided as policy reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharges | 34,413,593.98 | 98,423,101.84 |
| Selling expense | 3,479,194.67 | 13,343,017.90 |
| Administrative expense | 15,804,366.15 | 13,778,473.34 |
| R&D expense | ||
| Finance costs | -3,034,305.14 | -2,658,572.74 |
| Including: Interest expense | 28,275.01 | |
| Interest income | 2,928,449.72 | 3,125,874.09 |
| Add: Other income | 238,643.87 |
| Return on investment (“-” for loss) | 9,083,234.25 | |
| Including: Share of profit or loss of joint ventures and associates | ||
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Foreign exchange gain (“-” 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) | ||
| 3. Operating profit (“-” for loss) | 40,860,358.64 | 108,454,918.51 |
| Add: Non-operating income | 662,480.93 | 181.09 |
| Less: Non-operating expense | 610,100.74 | 35,973.80 |
| 4. Profit before tax (“-” for loss) | 40,912,738.83 | 108,419,125.80 |
| Less: Income tax expense | 12,764,075.66 | 24,342,268.36 |
| 5. Net profit (“-” for net loss) | 28,148,663.17 | 84,076,857.44 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 28,148,663.17 | 84,076,857.44 |
| 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 | 28,114,908.77 | 84,028,728.24 |
| 5.2.1 Net profit attributable to non-controlling interests | 33,754.40 | 48,129.20 |
| 6. Other comprehensive income, net of tax | 885,903.03 | 2,286,558.31 |
| Attributable to owners of the Company as the parent | 549,303.82 | 1,600,590.82 |
| 6.1 Items that will not be reclassified to profit or loss | -236,094.35 |
| 6.1.1 Changes caused by remeasurements on defined benefit pension 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 | -236,094.35 | |
| 6.1.4 Changes in the fair value of the company’s credit risks | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | 785,398.17 | 1,600,590.82 |
| 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 investments in other debt obligations | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Allowance for credit impairments in investments in other debt obligations | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 785,398.17 | 1,600,590.82 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | 336,599.21 | 685,967.49 |
| 7. Total comprehensive income | 29,034,566.20 | 86,363,415.75 |
| Attributable to owners of the Company as the parent | 28,664,212.59 | 85,629,319.06 |
| Attributable to non-controlling interests | 370,353.61 | 734,096.69 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.0278 | 0.0831 |
| 8.2 Diluted earnings per share | 0.0278 | 0.0831 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.Legal representative: Liu Zhengyu Head for financial affairs: Tang XiaopingHead of the financial department: Qiao Yanjun
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Operating revenue | 83,770,856.13 | 193,299,003.22 |
| Less: Cost of sales | 25,213,820.41 | 31,591,927.69 |
| Taxes and surcharges | 23,716,419.18 | 79,883,135.16 |
| Selling expense | 747,374.05 | 10,905,238.86 |
| Administrative expense | 8,557,010.42 | 5,229,110.88 |
| R&D expense | ||
| Finance costs | -11,823,080.33 | -2,692,984.60 |
| Including: Interest expense | ||
| Interest income | 7,768,291.80 | |
| Add: Other income | 22,591.96 | |
| Return on investment (“-” for loss) | 9,083,234.25 | |
| Including: Share of profit or loss of joint ventures and associates | ||
| 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) | 37,381,904.36 | 77,465,809.48 |
| Add: Non-operating income | 100,000.00 | 40.01 |
| Less: Non-operating expense | 500,000.00 | |
| 3. Profit before tax (“-” for loss) | 36,981,904.36 | 77,465,849.49 |
| Less: Income tax expense | 9,261,731.70 | 17,108,190.61 |
| 4. Net profit (“-” for net loss) | 27,720,172.66 | 60,357,658.88 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 27,720,172.66 | 60,357,658.88 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | 166,630.34 | |
| 5.1 Items that will not be reclassified to profit or loss | ||
| 5.1.1 Changes caused by remeasurements on defined benefit pension 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 | ||
| 5.1.4 Changes in the fair value of the company’s credit risks | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | 166,630.34 | |
| 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 investments in other debt obligations | 166,630.34 | |
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Allowance for credit impairments in investments in other debt obligations | ||
| 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 | 27,886,803.00 | 60,357,658.88 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | ||
| 7.2 Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 261,043,476.47 | 687,255,636.15 |
| Net increase in customer deposits and interbank deposits | ||
| 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, handling charges and commissions received | ||
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax rebates | 74,607.97 | |
| Cash generated from other operating activities | 29,955,959.84 | 10,152,937.27 |
| Subtotal of cash generated from operating activities | 290,999,436.31 | 697,483,181.39 |
| Payments for commodities and services | 97,053,822.51 | 207,428,364.66 |
| Net increase in loans and advances to customers |
| Net increase in deposits in the central bank and in interbank loans granted | ||
| Payments for claims on original insurance contracts | ||
| Net increase in interbank loans granted | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 43,783,011.73 | 41,274,575.65 |
| Taxes paid | 499,313,151.21 | 155,769,904.37 |
| Cash used in other operating activities | 86,108,414.53 | 75,853,132.12 |
| Subtotal of cash used in operating activities | 726,258,399.98 | 480,325,976.80 |
| Net cash generated from/used in operating activities | -435,258,963.67 | 217,157,204.59 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 900,000,000.00 | |
| Return on investment | 11,365,734.25 | |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 1,000.00 | |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 1,000.00 | 911,365,734.25 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 28,007.52 | 42,278.00 |
| Payments for investments | ||
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 28,007.52 | 42,278.00 |
| Net cash generated from/used in investing activities | -27,007.52 | 911,323,456.25 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Including: Capital contributions by non-controlling interests to subsidiaries | ||
| Borrowings obtained | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | ||
| Repayments of borrowings | ||
| Payments for interest and dividends | ||
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | ||
| Net cash generated from/used in financing activities | ||
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 126,842.30 | -229,218.70 |
| 5. Net increase in cash and cash equivalents | -435,159,128.89 | 1,128,251,442.14 |
| Add: Cash and cash equivalents, beginning of the period | 1,507,189,760.35 | 1,148,522,435.93 |
| 6. Cash and cash equivalents, end of the period | 1,072,030,631.46 | 2,276,773,878.07 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 76,737,396.13 | 401,066,898.41 |
| Tax rebates | 2,122.45 | |
| Cash generated from other operating activities | 3,015,470.24 | 20,292,638.39 |
| Subtotal of cash generated from operating activities | 79,752,866.37 | 421,361,659.25 |
| Payments for commodities and services | 8,991,236.23 | 40,363,877.13 |
| Cash paid to and for employees | 9,672,170.29 | 10,332,086.06 |
| Taxes paid | 45,295,329.10 | 28,622,025.86 |
| Cash used in other operating activities | 262,405,440.61 | 5,750,799.60 |
| Subtotal of cash used in operating activities | 326,364,176.23 | 85,068,788.65 |
| Net cash generated from/used in operating activities | -246,611,309.86 | 336,292,870.60 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 900,000,000.00 | |
| Return on investment | 11,365,734.25 | |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | ||
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 911,365,734.25 | |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 26,150.00 | |
| Payments for investments | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 26,150.00 | |
| Net cash generated from/used in investing activities | -26,150.00 | 911,365,734.25 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings obtained | ||
| Cash generated from other financing activities |
| Subtotal of cash generated from financing activities | ||
| Repayments of borrowings | ||
| Payments for interest and dividends | ||
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | ||
| Net cash generated from/used in financing activities | ||
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | ||
| 5. Net increase in cash and cash equivalents | -246,637,459.86 | 1,247,658,604.85 |
| Add: Cash and cash equivalents, beginning of the period | 963,737,437.55 | 444,486,378.53 |
| 6. Cash and cash equivalents, end of the period | 717,099,977.69 | 1,692,144,983.38 |
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Revenue or Leases from 2020
□ Applicable √ Not applicable
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any NewStandards Governing Revenue or Leases from 2020
□ Applicable √ Not applicable
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.