ANHUI GUJING DISTILLERY COMPANY LIMITED FIRST QUARTER REPORT 2019 April 2019 Part I Important Notes The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of Anhui Gujing Distillery Company Limited (hereinafterreferred to as the “Company”) hereby guarantee the factuality, accuracy and completeness ofthe contents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Liang Jinhui, the Company’s legal representative, Ye Changqing, the Company’s ChiefAccountant, and Zhu Jiafeng, head of the Company’s financial department (equivalent tofinancial manager) hereby guarantee that the Financial Statements carried in this Report arefactual, accurate and complete. Part II Key Corporate Information I Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No | Q1 2019 | Q1 2018 | Change (%) | | Operating revenue (RMB) | 3,668,502,474.92 | 2,559,879,006.93 | 43.31% | | Net profit attributable to the listed company’s shareholders (RMB) | 783,389,904.73 | 581,079,212.12 | 34.82% | | Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | 749,094,364.21 | 568,229,870.99 | 31.83% | | Net cash generated from/used in operating activities (RMB) | 1,010,701,440.91 | 193,972,491.77 | 421.05% | | Basic earnings per share (RMB/share) | 1.56 | 1.15 | 35.65% | | Diluted earnings per share (RMB/share) | 1.56 | 1.15 | 35.65% | | Weighted average return on equity (%) | 9.80% | 8.61% | 1.19% | | 31 March 2019 | 31 December 2018 | Change (%) | | Total assets (RMB) | 13,659,931,600.41 | 12,509,928,449.72 | 9.19% | | Equity attributable to the listed company’s shareholders (RMB) | 8,385,373,929.31 | 7,601,984,024.58 | 10.31% |
| Item | Q1 2019 | Note | | Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 152,598.23 | | | Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per government’s uniform standards) | 7,114,400.70 | | | Gain or loss on fair-value changes in trading financial assets and liabilities and derivative financial assets and liabilities & income from disposal of trading financial assets and liabilities, derivative financial assets and liabilities, and other investments in debt | 36,638,503.72 | |
| obligations (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) | | | | Non-operating income and expense other than above | 4,272,238.44 | | | Less: Income tax effects | 12,022,319.60 | | | Non-controlling interests effects (net of tax) | 1,859,880.97 | | | Total | 34,295,540.52 | -- |
| Number of ordinary shareholders at the period-end | 20,097 | 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 | | ANHUI GUJING GROUP COMPANY LIMITED | State-owned legal person | 53.89% | 271,404,022 | | In pledge | 114,000,000 | | GAOLING FUND,L.P. | Foreign legal person | 2.47% | 12,446,408 | | | | | NORGES BANK | Foreign legal person | 2.11% | 10,633,056 | | | | | CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD | Foreign legal person | 1.63% | 8,193,723 | | | |
| AGRICULTURAL BANK OF CHINA－E FUND CONSUMPTION SECTOR STOCK SECURITIES INVESTMENT FUND | Other | 1.49% | 7,485,278 | | | | | UBS (LUX) EQUITY FUND - CHINA OPPORTUNITY (USD) | Foreign legal person | 1.40% | 7,068,861 | | | | | CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD. | State-owned legal person | 1.30% | 6,543,600 | | | | | Zhejiang Yiwu Tanzhen Investment Management Partnership (LLP)-Loyal Valley Value China Selection Private Securities Investment Fund | Other | 1.27% | 6,392,884 | | | | | GREENWOODS CHINA ALPHA MASTER FUND | Foreign natural person | 1.12% | 5,657,150 | | | | | PERSHING LLC | Foreign legal person | 0.85% | 4,271,296 | | | | | Top 10 unrestricted shareholders | | Name of shareholder | Unrestricted shares held | Shares by type | | Type | Shares | | ANHUI GUJING GROUP COMPANY LIMITED | 271,404,022 | RMB-denominated ordinary stock | 271,404,022 | | GAOLING FUND,L.P. | 12,446,408 | Domestically listed foreign stock | 12,446,408 | | NORGES BANK | 10,633,056 | Domestically | 10,633,056 |
| | listed foreign stock | | | CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD | 8,193,723 | Domestically listed foreign stock | 8,193,723 | | AGRICULTURAL BANK OF CHINA－E FUND CONSUMPTION SECTOR STOCK SECURITIES INVESTMENT FUND | 7,485,278 | RMB-denominated ordinary stock | 7,485,278 | | UBS (LUX) EQUITY FUND - CHINA OPPORTUNITY (USD) | 7,068,861 | Domestically listed foreign stock | 7,068,861 | | CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD. | 6,543,600 | RMB-denominated ordinary stock | 6,543,600 | | Zhejiang Yiwu Tanzhen Investment Management Partnership (LLP)-Loyal Valley Value China Selection Private Securities Investment Fund | 6,392,884 | RMB-denominated ordinary stock | 6,392,884 | | GREENWOODS CHINA ALPHA MASTER FUND | 5,657,150 | Domestically listed foreign stock | 5,657,150 | | PERSHING LLC | 4,271,296 | Domestically listed foreign stock | 4,271,296 | | Related or acting-in-concert parties among the shareholders above | Among the above shareholders, the Company's controlling shareholder, Anhui Gujing Group Co., Ltd., has no relationship with other shareholders and does not belong to the acting-in-concert stipulated in the Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies. In addition, the relationship between other shareholders is unknown, and it is unknown whether it belongs to the acting-in-concert stipulated in the Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies. | | Top 10 ordinary shareholders involved in securities margin trading (if any) | N/A |
Part III Significant Events I Changes in Key Financial Statement Line Items and Explanation of why √ Applicable □ Not applicable | Balance sheet item | 31 March 2019 (RMB) | 31 December 2018 (RMB) | Change (%) | Explanation of why | | Monetary capital | 2,776,885,073.59 | 1,705,760,865.12 | 62.79% | Increase in sales revenue | | Prepayments | 102,929,908.26 | 182,558,000.75 | -43.62% | Decrease in prepaid advertising fees | | Other non-current assets | 574,026.00 | 16,544,407.51 | -96.53% | Handover of assets | | Other current liabilities | 627,475,374.84 | 295,164,745.44 | 112.58% | Increase in unrecognized expenditures | | Income statement item | Q1 2019 (RMB) | Q1 2018 (RMB) | Change (%) | Explanation of why | | Operating revenue | 3,668,502,474.92 | 2,559,879,006.93 | 43.31% | Increase in sales orders | | Cost of sales | 799,244,679.69 | 518,797,750.19 | 54.06% | Increase in sales | | Taxes and surcharges | 540,036,699.39 | 375,443,186.81 | 43.84% | Increase in sales revenue | | Selling expense | 1,167,562,403.83 | 793,946,063.51 | 47.06% | Increase in expenses on branding and sales promotional activities | | Net profit attributable to owners of the Company as the parent | 783,389,904.73 | 581,079,212.12 | 34.82% | Increase in sales revenue | | Cash flow statement item | Q1 2019 (RMB) | Q1 2018 (RMB) | Change (%) | Explanation of why | | Net cash generated from/used in operating activities | 1,010,701,440.91 | 193,972,491.77 | 421.05% | Increase in sales revenue | | Net cash generated from/used in investing activities | 160,422,767.56 | 74,965,977.62 | 113.99% | Increase in proceeds from disinvestment | | Cash and cash equivalents, end of the period | 2,006,685,073.59 | 1,293,027,095.79 | 55.19% | Increase in sales revenue |
II Progress, Influence and Solutions with regard to Significant Events □ Applicable √ Not applicableProgress of any share repurchases: □ Applicable √ Not applicableProgress 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 applicableNo such cases in the Reporting Period. IV Operating Performance Forecast for H1 2019 Warning 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 V Securities Investments √ Applicable □ Not applicable | Variety of security | Symbol of security | Name of security | Initial investment cost | Accounting measurement model | Beginning carrying value | Gain/loss of changes in fair value in the Reporting Period | Accumulative changes in fair value recorded into equities | Purchased in the Reporting Period | Sold in the Reporting Period | Gain/loss in Reporting Period | Ending carrying value | Accounting title | Capital source | | Funds | | CITIC Wings Dapu Asset Management Plan | 200,000,000.00 | Fair value | 206,393,107.46 | 12,901,054.64 | 0.00 | 0.00 | 0.00 | 0.00 | 219,294,162.10 | Trading financial assets | Self-owned funds | | Other investment securities held at the Period-end | | -- | | | | | | | | -- | -- | | Total | 200,000,000.00 | -- | 206,393,107.46 | 12,901,054.64 | 0.00 | 0.00 | 0.00 | 0.00 | 219,294,162.10 | -- | -- | | Disclosure date of announcement on Board’s consent for securities investment | 27 August 2018 | | Disclosure date of announcement on shareholders’ meeting’s consent for securities investment (if any) | N/A |
| Operator | Relationship with the Company | Related transaction | Type of derivative | Initial investment amount | Starting date | Ending date | Beginning investment amount | Purchased in the Reporting Period | Sold in the Reporting Period | Impairment provision (if any) | Ending investment amount | Proportion of ending investment amount in the Company’s ending net assets | Actual gain/loss in the Reporting Period | | Reverse repurchase of national debt | Naught | No | Reverse repurchase of national debt | 0.00 | 21 December 2018 | 8 January 2019 | 17,990 | 0.00 | 17,990 | | 0.00 | 0.00% | 17.59 | | Total | 0.00 | -- | -- | 17,990 | 0.00 | 17,990 | | 0.00 | 0.00% | 17.59 | | Source of money used for investment | All from the Company’s own funds | | Legal matters involved (if applicable) | N/A | | Disclosure date of board announcement approving derivative investment (if any) | 30 August 2013 | | Disclosure date of shareholders’ meeting announcement approving derivative investment (if any) | | | Analysis of risks and control measures associated with derivative investments held in Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | The Company had controlled the relevant risks strictly according to the Derivatives Investment Management System. | | Changes in market prices or fair value of derivative investments in Reporting Period (fair value analysis should include measurement method and related assumptions and parameters) | N/A |
| Significant changes in accounting policies and specific accounting principles adopted for derivative investments in Reporting Period compared to last reporting period | N/A | | Opinion of independent directors on derivative investments and risk control | Based on the sustainable development of the main business and the sufficient free idle money, the Company increased the profits through investing in the reasonable financial derivative instruments, which was in favor of improving the service efficiency of the idle funds. In order to reduce the investment risks of the financial derivative instruments, the Company had set up corresponding supervision mechanism for the financial derivative instrument business and formulated reasonable accounting policy as well as specific principles of financial accounting. The derivative Investment business developed separately took national debts as mortgage object, which was met with the cautious and steady risks management principle and the interest of the Company and shareholders. Therefore, agreed the Company to develop the derivative Investment business of reverse repurchase of national debt not more than the limit of RMB0.3 billion. |
VII Communications with the Investment Community such as Researches, Inquiries andInterviews during the Reporting Period □ Applicable √ Not applicableNo such cases in the Reporting Period. VIII Irregularities in the Provision of Guarantees □ Applicable √ Not applicableNo such cases in the Reporting Period. IX Occupation of the Company’s Capital by the Controlling Shareholder or Its RelatedParties for Non-Operating Purposes □ Applicable √ Not applicableNo such cases in the Reporting Period. Part IV Financial Statements I Financial Statements 1. Consolidated Balance Sheet Prepared by Anhui Gujing Distillery Company Limited 31 March 2019 Unit: RMB | Item | 31 March 2019 | 31 December 2018 | | Current assets: | | | | Monetary capital | 2,776,885,073.59 | 1,705,760,865.12 | | Settlement reserve | | | | Interbank loans granted | | | | Trading financial assets | 2,924,086,886.10 | 0.00 | | Financial assets at fair value through profit or loss | 0.00 | 622,892.96 | | Derivative financial assets | | | | Notes and accounts receivable | 1,842,004,109.11 | 1,377,175,880.08 | | Including: Notes receivable | 1,801,903,794.40 | 1,347,427,811.34 | | Accounts receivable | 40,100,314.71 | 29,748,068.74 | | Prepayments | 102,929,908.26 | 182,558,000.75 | | Premiums receivable | | | | Reinsurance receivables | | | | Receivable reinsurance contract reserve | | | | Other receivables | 55,787,595.89 | 43,342,878.22 | | Including: Interest receivable | 27,683,178.08 | 24,923,178.08 | | Dividends receivable | | | | Financial assets purchased under resale agreements | | | | Inventories | 2,352,049,231.27 | 2,407,306,664.86 | | Contractual assets | | | | Assets classified as held for sale | | | | Current portion of non-current assets | 300,000,000.00 | 300,000,000.00 | | Other current assets | 66,951,296.44 | 3,012,478,687.20 |
| Total current assets | 10,420,694,100.66 | 9,029,245,869.19 | | Non-current assets: | | | | Loans and advances to customers | | | | Investments in debt obligations | | | | Available-for-sale financial assets | 0.00 | 206,393,107.46 | | Investments in other debt obligations | | | | Held-to-maturity investments | | | | Long-term receivables | | | | Long-term equity investments | 4,900,000.00 | 4,900,000.00 | | Investments in other equity instruments | | | | Other non-current financial assets | | | | Investment property | 4,947,942.91 | 5,027,228.53 | | Fixed assets | 1,729,906,478.68 | 1,763,988,530.56 | | Construction in progress | 110,880,381.33 | 93,320,557.56 | | Productive living assets | | | | Oil and gas assets | | | | Right-of-use assets | | | | Intangible assets | 739,157,747.52 | 742,083,609.10 | | R&D expense | | | | Goodwill | 478,283,495.29 | 478,283,495.29 | | Long-term prepaid expense | 82,038,909.31 | 83,561,473.46 | | Deferred income tax assets | 88,548,518.71 | 86,580,171.06 | | Other non-current assets | 574,026.00 | 16,544,407.51 | | Total non-current assets | 3,239,237,499.75 | 3,480,682,580.53 | | Total assets | 13,659,931,600.41 | 12,509,928,449.72 | | Current liabilities: | | | | Short-term borrowings | | | | Borrowings from central bank | | | | Interbank loans obtained | | | | Trading financial liabilities | | | | Financial liabilities at fair value through profit or loss | | | | Derivative financial liabilities | | | | Notes and accounts payable | 782,436,169.27 | 834,156,012.31 | | Advances from customers | 1,115,449,181.95 | 1,149,143,310.48 |
| Financial assets sold under repurchase agreements | | | | Customer deposits and interbank deposits | | | | Payables for acting trading of securities | | | | Payables for underwriting of securities | | | | Payroll payable | 361,664,454.69 | 457,299,476.43 | | Taxes payable | 418,864,754.51 | 372,993,624.18 | | Other payables | 1,350,980,224.99 | 1,192,020,147.82 | | Including: Interest payable | | | | Dividends payable | | | | Handling charges and commissions payable | | | | Reinsurance payables | | | | Contractual liabilities | | | | Liabilities directly associated with assets classified as held for sale | | | | Current portion of non-current liabilities | | | | Other current liabilities | 627,475,374.84 | 295,164,745.44 | | Total current liabilities | 4,656,870,160.25 | 4,300,777,316.66 | | Non-current liabilities: | | | | Insurance contract reserve | | | | Long-term borrowings | | | | Bonds payable | | | | Including: Preferred shares | | | | Perpetual bonds | | | | Lease liabilities | | | | Long-term payables | | | | Long-term payroll payable | | | | Provisions | | | | Deferred income | 75,405,036.51 | 76,636,500.55 | | Deferred income tax liabilities | 102,387,965.69 | 102,764,515.11 | | Other non-current liabilities | | | | Total non-current liabilities | 177,793,002.20 | 179,401,015.66 | | Total liabilities | 4,834,663,162.45 | 4,480,178,332.32 | | Owners’ equity: | | |
| Share capital | 503,600,000.00 | 503,600,000.00 | | Other equity instruments | | | | Including: Preferred shares | | | | Perpetual bonds | | | | Capital reserves | 1,295,405,592.25 | 1,295,405,592.25 | | Less: Treasury stock | | | | Other comprehensive income | 0.00 | 4,794,830.59 | | Special reserves | | | | Surplus reserves | 256,902,260.27 | 256,902,260.27 | | General reserve | | | | Retained earnings | 6,329,466,076.79 | 5,541,281,341.47 | | Total equity attributable to owners of the Company as the parent | 8,385,373,929.31 | 7,601,984,024.58 | | Non-controlling interests | 439,894,508.65 | 427,766,092.82 | | Total owners’ equity | 8,825,268,437.96 | 8,029,750,117.40 | | Total liabilities and owners’ equity | 13,659,931,600.41 | 12,509,928,449.72 |
| Item | 31 March 2019 | 31 December 2018 | | Current assets: | | | | Monetary capital | 1,512,850,885.95 | 1,078,172,917.59 | | Trading financial assets | 1,836,086,886.10 | 0.00 | | Financial assets at fair value through profit or loss | 0.00 | 622,892.96 | | Derivative financial assets | | | | Notes and accounts receivable | 1,599,477,835.08 | 1,265,722,336.88 | | Including: Notes receivable | 1,590,260,811.93 | 1,256,336,386.34 | | Accounts receivable | 9,217,023.15 | 9,385,950.54 | | Prepayments | 20,627,974.96 | 10,869,911.54 | | Other receivables | 111,027,896.38 | 110,800,665.19 | | Including: Interest receivable | | | | Dividends receivable | | |
| Inventories | 2,020,381,509.40 | 2,125,826,967.11 | | Contractual assets | | | | Assets classified as held for sale | | | | Current portion of non-current assets | | | | Other current assets | 8,938,044.34 | 1,764,267,968.83 | | Total current assets | 7,109,391,032.21 | 6,356,283,660.10 | | Non-current assets: | | | | Investments in debt obligations | | | | Available-for-sale financial assets | 0.00 | 206,393,107.46 | | Investments in other debt obligations | | | | Held-to-maturity investments | | | | Long-term receivables | | | | Long-term equity investments | 1,148,213,665.32 | 1,148,213,665.32 | | Investments in other equity instruments | | | | Other non-current financial assets | | | | Investment property | 4,947,942.91 | 24,715,657.40 | | Fixed assets | 1,286,243,642.29 | 1,290,714,455.79 | | Construction in progress | 103,628,251.56 | 86,634,753.93 | | Productive living assets | | | | Oil and gas assets | | | | Right-of-use assets | | | | Intangible assets | 189,247,719.51 | 189,968,142.25 | | R&D expense | | | | Goodwill | | | | Long-term prepaid expense | 56,985,362.04 | 56,643,945.05 | | Deferred income tax assets | 37,415,458.17 | 37,415,458.17 | | Other non-current assets | 574,026.00 | 12,474,026.00 | | Total non-current assets | 2,827,256,067.80 | 3,053,173,211.37 | | Total assets | 9,936,647,100.01 | 9,409,456,871.47 | | Current liabilities: | | | | Short-term borrowings | | | | Trading financial liabilities | | | | Financial liabilities at fair value through profit or loss | | | | Derivative financial liabilities | | |
| Notes and accounts payable | 326,374,765.14 | 390,939,469.93 | | Advances from customers | 1,386,004,212.63 | 1,123,125,892.84 | | Contractual liabilities | | | | Payroll payable | 88,587,986.11 | 117,748,485.96 | | Taxes payable | 218,939,082.73 | 161,176,957.25 | | Other payables | 223,811,145.21 | 372,902,293.22 | | Including: Interest payable | | | | Dividends payable | | | | Liabilities directly associated with assets classified as held for sale | | | | Current portion of non-current liabilities | | | | Other current liabilities | 21,360,399.95 | 32,605,794.55 | | Total current liabilities | 2,265,077,591.77 | 2,198,498,893.75 | | 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 | 35,358,220.73 | 36,417,554.85 | | Deferred income tax liabilities | 4,895,621.10 | 4,828,737.52 | | Other non-current liabilities | | | | Total non-current liabilities | 40,253,841.83 | 41,246,292.37 | | Total liabilities | 2,305,331,433.60 | 2,239,745,186.12 | | Owners’ equity: | | | | Share capital | 503,600,000.00 | 503,600,000.00 | | Other equity instruments | | | | Including: Preferred shares | | | | Perpetual bonds | | | | Capital reserves | 1,247,162,107.35 | 1,247,162,107.35 | | Less: Treasury stock | | | | Other comprehensive income | 0.00 | 4,794,830.59 |
| Special reserves | | | | Surplus reserves | 251,800,000.00 | 251,800,000.00 | | Retained earnings | 5,628,753,559.06 | 5,162,354,747.41 | | Total owners’ equity | 7,631,315,666.41 | 7,169,711,685.35 | | Total liabilities and owners’ equity | 9,936,647,100.01 | 9,409,456,871.47 |
| Item | Q1 2019 | Q1 2018 | | 1. Revenue | 3,668,502,474.92 | 2,559,879,006.93 | | Including: Operating revenue | 3,668,502,474.92 | 2,559,879,006.93 | | Interest income | | | | Premium income | | | | Handling charge and commission income | | | | 2. Costs and expenses | 2,662,463,799.10 | 1,809,442,510.38 | | Including: Cost of sales | 799,244,679.69 | 518,797,750.19 | | Interest expense | | | | Handling charge and commission expense | | | | Surrenders | | | | Net claims paid | | | | Net amount provided as insurance contract reserve | | | | Expenditure on policy dividends | | | | Reinsurance premium expense | | | | Taxes and surcharges | 540,036,699.39 | 375,443,186.81 | | Selling expense | 1,167,562,403.83 | 793,946,063.51 | | Administrative expense | 150,969,173.04 | 122,802,976.31 | | R&D expense | 6,419,946.84 | 4,509,000.95 | | Finance costs | -1,769,103.68 | -6,056,467.40 | | Including: Interest expense | 8,705,507.36 | 0.00 | | Interest income | 9,334,113.54 | 5,457,775.34 | | Asset impairment loss | | | | Credit impairment loss | | | | Add: Other income | 7,094,400.70 | 2,147,822.47 |
| Return on investment (“-” for loss) | 26,924,392.85 | 27,448,214.89 | | Including: Share of profit or loss of joint ventures and associates | | | | Foreign exchange gain (“-” for loss) | | | | Net gain on exposure hedges (“-” for loss) | | | | Gain on changes in fair value (“-” for loss) | 13,070,885.68 | -27,498.41 | | Asset disposal income (“-” for loss) | 83,202.84 | 81,303.79 | | 3. Operating profit (“-” for loss) | 1,053,211,557.89 | 780,086,339.29 | | Add: Non-operating income | 5,335,678.12 | 6,907,556.84 | | Less: Non-operating expense | 1,002,057.61 | 996,055.06 | | 4. Profit before tax (“-” for loss) | 1,057,545,178.40 | 785,997,841.07 | | Less: Income tax expense | 262,026,857.84 | 193,999,217.31 | | 5. Net profit (“-” for net loss) | 795,518,320.56 | 591,998,623.76 | | 5.1 By operating continuity | | | | 5.1.1 Net profit from continuing operations (“-” for net loss) | 795,518,320.56 | 591,998,623.76 | | 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 | 783,389,904.73 | 581,079,212.12 | | 5.2.1 Net profit attributable to non-controlling interests | 12,128,415.83 | 10,919,411.64 | | 6. Other comprehensive income, net of tax | 0.00 | -17,632,741.27 | | Attributable to owners of the Company as the parent | 0.00 | -17,632,741.27 | | 6.1 Items that will not be reclassified to profit or loss | | | | 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 | | | | 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 | 0.00 | -17,632,741.27 |
| or loss | | | | 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 Gain/Loss on changes in the fair value of available-for-sale financial assets | 0.00 | -17,632,741.27 | | 6.2.4 Other comprehensive income arising from the reclassification of financial assets | | | | 6.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | | | | 6.2.6 Allowance for credit impairments in investments in other debt obligations | | | | 6.2.7 Reserve for cash flow hedges | | | | 6.2.8 Differences arising from the translation of foreign currency-denominated financial statements | | | | 6.2.9 Other | | | | Attributable to non-controlling interests | | | | 7. Total comprehensive income | 795,518,320.56 | 574,365,882.49 | | Attributable to owners of the Company as the parent | 783,389,904.73 | 563,446,470.85 | | Attributable to non-controlling interests | 12,128,415.83 | 10,919,411.64 | | 8. Earnings per share | | | | 8.1 Basic earnings per share | 1.56 | 1.15 | | 8.2 Diluted earnings per share | 1.56 | 1.15 |
| Item | Q1 2019 | Q1 2018 | | 1. Operating revenue | 1,921,463,298.13 | 1,273,232,528.70 | | Less: Cost of sales | 742,536,052.02 | 483,888,734.16 | | Taxes and surcharges | 476,220,710.41 | 316,554,892.27 |
| Selling expense | 23,013,905.78 | 22,167,564.98 | | Administrative expense | 95,871,680.28 | 80,482,193.02 | | R&D expense | 3,489,301.54 | 4,043,750.51 | | Finance costs | -161,036.71 | -4,400,795.16 | | Including: Interest expense | 8,705,507.36 | 0.00 | | Interest income | 8,909,103.52 | 4,434,154.46 | | Asset impairment loss | | | | Credit impairment loss | | | | Add: Other income | 2,256,134.13 | 1,181,740.01 | | Return on investment (“-” for loss) | 18,762,552.86 | 24,534,436.91 | | Including: Share of profit or loss of joint ventures and associates | | | | Net gain on exposure hedges (“-” for loss) | | | | Gain on changes in fair value (“-” for loss) | 13,070,885.68 | -27,498.41 | | Asset disposal income (“-” for loss) | | | | 2. Operating profit (“-” for loss) | 614,582,257.48 | 396,184,867.44 | | Add: Non-operating income | 4,461,000.86 | 5,301,985.87 | | Less: Non-operating expense | 676,321.68 | 955,584.15 | | 3. Profit before tax (“-” for loss) | 618,366,936.66 | 400,531,269.16 | | Less: Income tax expense | 156,762,955.60 | 100,132,817.29 | | 4. Net profit (“-” for net loss) | 461,603,981.06 | 300,398,451.87 | | 4.1 Net profit from continuing operations (“-” for net loss) | 461,603,981.06 | 300,398,451.87 | | 4.2 Net profit from discontinued operations (“-” for net loss) | | | | 5. Other comprehensive income, net of tax | 0.00 | -17,628,541.27 | | 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 | 0.00 | -17,628,541.27 | | 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 | | | | 5.2.3 Gain/Loss on changes in the fair value of available-for-sale financial assets | 0.00 | -17,628,541.27 | | 5.2.4 Other comprehensive income arising from the reclassification of financial assets | | | | 5.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | | | | 5.2.6 Allowance for credit impairments in investments in other debt obligations | | | | 5.2.7 Reserve for cash flow hedges | | | | 5.2.8 Differences arising from the translation of foreign currency-denominated financial statements | | | | 5.2.9 Other | | | | 6. Total comprehensive income | 461,603,981.06 | 282,769,910.60 | | 7. Earnings per share | | | | 7.1 Basic earnings per share | 0.92 | 0.6 | | 7.2 Diluted earnings per share | 0.92 | 0.6 |
| Item | Q1 2019 | Q1 2018 | | 1. Cash flows from operating activities: | | |
| Proceeds from sale of commodities and rendering of services | 3,282,900,142.53 | 2,317,913,398.32 | | 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 | | | | Net increase in proceeds from disposal of financial assets at fair value through profit or loss | | | | 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 | 0.00 | 809,884.08 | | Cash generated from other operating activities | 183,731,144.88 | 36,191,356.85 | | Subtotal of cash generated from operating activities | 3,466,631,287.41 | 2,354,914,639.25 | | Payments for commodities and services | 437,253,627.58 | 559,193,732.69 | | 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 financial assets held for trading purposes | | | | Net increase in interbank loans granted | | |
| Interest, handling charges and commissions paid | | | | Policy dividends paid | | | | Cash paid to and for employees | 506,211,004.64 | 386,791,520.43 | | Taxes paid | 1,180,474,817.64 | 880,876,488.87 | | Cash used in other operating activities | 331,990,396.64 | 334,080,405.49 | | Subtotal of cash used in operating activities | 2,455,929,846.50 | 2,160,942,147.48 | | Net cash generated from/used in operating activities | 1,010,701,440.91 | 193,972,491.77 | | 2. Cash flows from investing activities: | | | | Proceeds from disinvestment | 1,155,560,000.00 | 450,660,768.81 | | Return on investment | 24,174,323.96 | 25,292,217.04 | | Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 0.00 | 85,060.00 | | Net proceeds from the disposal of subsidiaries and other business units | | | | Cash generated from other investing activities | | | | Subtotal of cash generated from investing activities | 1,179,734,323.96 | 476,038,045.85 | | Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 67,651,556.40 | 70,853,122.83 | | Payments for investments | 951,660,000.00 | 330,218,945.40 | | 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 | 1,019,311,556.40 | 401,072,068.23 | | Net cash generated from/used in investing activities | 160,422,767.56 | 74,965,977.62 | | 3. Cash flows from financing activities: | | | | Capital contributions received | | | | Including: Capital contributions by non-controlling interests to | | |
| subsidiaries | | | | Borrowings obtained | | | | Net proceeds from the issuance of bonds | | | | 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 | | | | 5. Net increase in cash and cash equivalents | 1,171,124,208.47 | 268,938,469.39 | | Add: Cash and cash equivalents, beginning of the period | 835,560,865.12 | 1,024,088,626.40 | | 6. Cash and cash equivalents, end of the period | 2,006,685,073.59 | 1,293,027,095.79 |
| Item | Q1 2019 | Q1 2018 | | 1. Cash flows from operating activities: | | | | Proceeds from sale of commodities and rendering of services | 1,787,341,935.99 | 1,095,672,510.95 | | Tax rebates | | | | Cash generated from other operating activities | 147,002,588.20 | 60,289,004.82 | | Subtotal of cash generated from operating activities | 1,934,344,524.19 | 1,155,961,515.77 | | Payments for commodities and services | 466,775,831.06 | 358,347,950.36 | | Cash paid to and for employees | 184,167,857.56 | 165,733,823.32 | | Taxes paid | 778,863,559.94 | 559,374,536.53 |
| Cash used in other operating activities | 69,443,644.99 | 49,683,984.62 | | Subtotal of cash used in operating activities | 1,499,250,893.55 | 1,133,140,294.83 | | Net cash generated from/used in operating activities | 435,093,630.64 | 22,821,220.94 | | 2. Cash flows from investing activities: | | | | Proceeds from disinvestment | 850,000,000.00 | 420,660,768.81 | | Return on investment | 18,769,315.08 | 25,135,723.89 | | 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 | 868,769,315.08 | 445,796,492.70 | | Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 53,184,977.36 | 44,030,378.21 | | Payments for investments | 716,000,000.00 | 140,218,945.40 | | Net payments for the acquisition of subsidiaries and other business units | | | | Cash used in other investing activities | | | | Subtotal of cash used in investing activities | 769,184,977.36 | 184,249,323.61 | | Net cash generated from/used in investing activities | 99,584,337.72 | 261,547,169.09 | | 3. Cash flows from financing activities: | | | | Capital contributions received | | | | Borrowings obtained | | | | Net proceeds from the issuance of bonds | | | | 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 | 534,677,968.36 | 284,368,390.03 | | Add: Cash and cash equivalents, beginning of the period | 708,172,917.59 | 826,262,109.02 | | 6. Cash and cash equivalents, end of the period | 1,242,850,885.95 | 1,110,630,499.05 |
| Item | 31 December 2018 | 1 January 2019 | Adjusted | | Current assets: | | | | | Monetary capital | 1,705,760,865.12 | 1,705,760,865.12 | | | Settlement reserve | | | | | Interbank loans granted | | | | | Trading financial assets | N/A | 2,965,016,000.42 | 2,965,016,000.42 | | Financial assets at fair value through profit or loss | 622,892.96 | N/A | -622,892.96 | | Derivative financial assets | | | | | Notes and accounts receivable | 1,377,175,880.08 | 1,377,175,880.08 | | | Including: Notes receivable | 1,347,427,811.34 | 1,347,427,811.34 | | | Accounts receivable | 29,748,068.74 | 29,748,068.74 | | | Prepayments | 182,558,000.75 | 182,558,000.75 | | | Premiums receivable | | | | | Reinsurance receivables | | | |
| Receivable reinsurance contract reserve | | | | | Other receivables | 43,342,878.22 | 43,342,878.22 | | | Including: Interest receivable | 24,923,178.08 | 24,923,178.08 | | | Dividends receivable | | | | | Financial assets purchased under resale agreements | | | | | Inventories | 2,407,306,664.86 | 2,407,306,664.86 | | | Contractual assets | N/A | | | | Assets classified as held for sale | | | | | Current portion of non-current assets | 300,000,000.00 | 300,000,000.00 | | | Other current assets | 3,012,478,687.20 | 254,478,687.20 | -2,758,000,000.00 | | Total current assets | 9,029,245,869.19 | 9,235,638,976.65 | 206,393,107.46 | | Non-current assets: | | | | | Loans and advances to customers | | | | | Investments in debt obligations | N/A | | | | Available-for-sale financial assets | 206,393,107.46 | N/A | -206,393,107.46 | | Investments in other debt obligations | N/A | | | | Held-to-maturity investments | | N/A | | | Long-term receivables | | | | | Long-term equity investments | 4,900,000.00 | 4,900,000.00 | | | Investments in other equity instruments | N/A | | | | Other non-current financial assets | N/A | | | | Investment property | 5,027,228.53 | 5,027,228.53 | | | Fixed assets | 1,763,988,530.56 | 1,763,988,530.56 | | | Construction in progress | 93,320,557.56 | 93,320,557.56 | | | Productive living assets | | | |
| Oil and gas assets | | | | | Right-of-use assets | N/A | | | | Intangible assets | 742,083,609.10 | 742,083,609.10 | | | R&D expense | | | | | Goodwill | 478,283,495.29 | 478,283,495.29 | | | Long-term prepaid expense | 83,561,473.46 | 83,561,473.46 | | | Deferred income tax assets | 86,580,171.06 | 86,580,171.06 | | | Other non-current assets | 16,544,407.51 | 16,544,407.51 | | | Total non-current assets | 3,480,682,580.53 | 3,274,289,473.07 | -206,393,107.46 | | Total assets | 12,509,928,449.72 | 12,509,928,449.72 | | | Current liabilities: | | | | | Short-term borrowings | | | | | Borrowings from central bank | | | | | Interbank loans obtained | | | | | Trading financial liabilities | N/A | | | | Financial liabilities at fair value through profit or loss | | N/A | | | Derivative financial liabilities | | | | | Notes and accounts payable | 834,156,012.31 | 834,156,012.31 | | | Advances from customers | 1,149,143,310.48 | 1,149,143,310.48 | | | Financial assets sold under repurchase agreements | | | | | Customer deposits and interbank deposits | | | | | Payables for acting trading of securities | | | | | Payables for underwriting of securities | | | | | Payroll payable | 457,299,476.43 | 457,299,476.43 | | | Taxes payable | 372,993,624.18 | 372,993,624.18 | | | Other payables | 1,192,020,147.82 | 1,192,020,147.82 | | | Including: Interest payable | | | | | Dividends | | | |
| payable | | | | | Handling charges and commissions payable | | | | | Reinsurance payables | | | | | Contractual liabilities | N/A | | | | Liabilities directly associated with assets classified as held for sale | | | | | Current portion of non-current liabilities | | | | | Other current liabilities | 295,164,745.44 | 295,164,745.44 | | | Total current liabilities | 4,300,777,316.66 | 4,300,777,316.66 | | | Non-current liabilities: | | | | | Insurance contract reserve | | | | | Long-term borrowings | | | | | Bonds payable | | | | | Including: Preferred shares | | | | | Perpetual bonds | | | | | Lease liabilities | N/A | | | | Long-term payables | | | | | Provisions | | | | | Deferred income | 76,636,500.55 | 76,636,500.55 | | | Deferred income tax liabilities | 102,764,515.11 | 102,764,515.11 | | | Other non-current liabilities | | | | | Total non-current liabilities | 179,401,015.66 | 179,401,015.66 | | | Total liabilities | 4,480,178,332.32 | 4,480,178,332.32 | | | Owners’ equity: | | | | | Share capital | 503,600,000.00 | 503,600,000.00 | | | Other equity instruments | | | | | Including: Preferred shares | | | | | Perpetual bonds | | | | | Capital reserves | 1,295,405,592.25 | 1,295,405,592.25 | |
| Less: Treasury stock | | | | | Other comprehensive income | 4,794,830.59 | 0.00 | -4,794,830.59 | | Surplus reserves | 256,902,260.27 | 256,902,260.27 | | | General reserve | | | | | Retained earnings | 5,541,281,341.47 | 5,546,076,172.06 | 4,794,830.59 | | Total equity attributable to owners of the Company as the parent | 7,601,984,024.58 | 7,601,984,024.58 | | | Non-controlling interests | 427,766,092.82 | 427,766,092.82 | | | Total owners’ equity | 8,029,750,117.40 | 8,029,750,117.40 | | | Total liabilities and owners’ equity | 12,509,928,449.72 | 12,509,928,449.72 | |
| Item | 31 December 2018 | 1 January 2019 | Adjusted | | Current assets: | | | | | Monetary capital | 1,078,172,917.59 | 1,078,172,917.59 | | | Trading financial assets | N/A | 1,807,016,000.42 | 1,807,016,000.42 | | Financial assets at fair value through profit or loss | 622,892.96 | N/A | -622,892.96 | | Derivative financial assets | | | | | Notes and accounts receivable | 1,265,722,336.88 | 1,265,722,336.88 | | | Including: Notes receivable | 1,256,336,386.34 | 1,256,336,386.34 | | | Accounts receivable | 9,385,950.54 | 9,527,072.41 | | | Prepayments | 10,869,911.54 | 10,869,911.54 | | | Other receivables | 110,800,665.19 | 110,800,665.19 | | | Including: Interest receivable | | | |
| Dividends receivable | | | | | Inventories | 2,125,826,967.11 | 2,125,826,967.11 | | | Contractual assets | N/A | | | | Assets classified as held for sale | | | | | Current portion of non-current assets | | | | | Other current assets | 1,764,267,968.83 | 164,267,968.83 | -1,600,000,000.00 | | Total current assets | 6,356,283,660.10 | 6,562,676,767.56 | -206,393,107.46 | | Non-current assets: | | | | | Investments in debt obligations | N/A | | | | Available-for-sale financial assets | 206,393,107.46 | N/A | -206,393,107.46 | | Investments in other debt obligations | N/A | | | | Held-to-maturity investments | | N/A | | | Long-term receivables | | | | | Long-term equity investments | 1,148,213,665.32 | 1,148,213,665.32 | | | Investments in other equity instruments | N/A | | | | Other non-current financial assets | N/A | | | | Investment property | 24,715,657.40 | 24,715,657.40 | | | Fixed assets | 1,290,714,455.79 | 1,290,714,455.79 | | | Construction in progress | 86,634,753.93 | 86,634,753.93 | | | Productive living assets | | | | | Oil and gas assets | | | | | Right-of-use assets | N/A | | | | Intangible assets | 189,968,142.25 | 189,968,142.25 | | | R&D expense | | | | | Goodwill | | | | | Long-term prepaid expense | 56,643,945.05 | 56,643,945.05 | | | Deferred income tax assets | 37,415,458.17 | 37,415,458.17 | |
| Other non-current assets | 12,474,026.00 | 12,474,026.00 | | | Total non-current assets | 3,053,173,211.37 | 2,846,780,103.91 | -206,393,107.46 | | Total assets | 9,409,456,871.47 | 9,409,456,871.47 | | | Current liabilities: | | | | | Short-term borrowings | | | | | Trading financial liabilities | N/A | | | | Financial liabilities at fair value through profit or loss | | N/A | | | Derivative financial liabilities | | | | | Notes and accounts payable | 390,939,469.93 | 390,939,469.93 | | | Advances from customers | 1,123,125,892.84 | 1,123,125,892.84 | | | Contractual liabilities | N/A | | | | Payroll payable | 117,748,485.96 | 117,748,485.96 | | | Taxes payable | 161,176,957.25 | 161,176,957.25 | | | Other payables | 372,902,293.22 | 372,902,293.22 | | | Including: Interest payable | | | | | Dividends payable | | | | | Liabilities directly associated with assets classified as held for sale | | | | | Current portion of non-current liabilities | | | | | Other current liabilities | 32,605,794.55 | 32,605,794.55 | | | Total current liabilities | 2,198,498,893.75 | 2,198,498,893.75 | | | Non-current liabilities: | | | | | Long-term borrowings | | | | | Bonds payable | | | | | Including: Preferred shares | | | | | Perpetual bonds | | | | | Lease liabilities | N/A | | | | Long-term payables | | | | | Provisions | | | |
| Deferred income | 36,417,554.85 | 36,417,554.85 | | | Deferred income tax liabilities | 4,828,737.52 | 4,828,737.52 | | | Other non-current liabilities | | | | | Total non-current liabilities | 41,246,292.37 | 41,246,292.37 | | | Total liabilities | 2,239,745,186.12 | 2,239,745,186.12 | | | Owners’ equity: | | | | | Share capital | 503,600,000.00 | 503,600,000.00 | | | Other equity instruments | | | | | Including: Preferred shares | | | | | Perpetual bonds | | | | | Capital reserves | 1,247,162,107.35 | 1,247,162,107.35 | | | Less: Treasury stock | | | | | Other comprehensive income | 4,794,830.59 | 0.00 | -4,794,830.59 | | Surplus reserves | 251,800,000.00 | 251,800,000.00 | | | Retained earnings | 5,162,354,747.41 | 5,167,149,578.00 | 4,794,830.59 | | Total owners’ equity | 7,169,711,685.35 | 7,169,711,685.35 | | | Total liabilities and owners’ equity | 9,409,456,871.47 | 9,409,456,871.47 | |
These financial statements have not been audited by such an auditor.
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