Datang Environment Industry Group Co., Ltd. — Capital/Financing Update 2019

Dec 10, 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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Datang Environment Industry Group Co., Ltd.* 大唐環境產業集團股份有限公司

(A joint stock company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 1272)

DOMESTIC PUBLIC ISSUANCE OF GREEN CORPORATE BONDS

This announcement is made by Datang Environment Industry Group Co., Ltd. (the “ Company ” and, together with its subsidiaries, the “ Group ”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the supplemental circular of the extraordinary general meeting of the Company dated 16 October 2019 (the “ Circular ”) and the announcement on poll results of the extraordinary general meeting dated 31 October 2019. Unless otherwise specified, the terms used herein shall have the same meanings as those defined in the Circular.

At the extraordinary general meeting convened on 31 October 2019, the Shareholders passed the special resolution on the issuance of corporate bonds and the authorization granted to the Board or its authorized persons to handle all matters relating to the domestic issuance of bonds. The Board is pleased to announce that the Company has obtained approvals from the China Securities Regulatory Commission for the public issuance of the green corporate bonds with a principal amount of not exceeding RMB2 billion to qualified investors in the PRC and with a term of not more than 10 years (10 years inclusive) (the “ Issue ”). Haitong Securities Co., Ltd. ( 海通證券股份有限公 司 ), Huatai Securities Co., Ltd. ( 華泰聯合證券有限責任公司 ) and China Minzu Securities Co., Ltd. ( 中國民族證券有限責任公司 ), currently known as Founder Securities Underwriting and Sponsoring Co., Ltd. ( 方正證券承銷保薦有限責 任公司 ) are the lead underwriters of the Issue. After deducting the issue expenses, not less than 70% of the proceeds from the Issue is proposed to be used for business development in the green industry field in compliance with the requirements of the Green Bond Endorsed Project Catalogue (2015 Edition) (《綠色債券支持項目目錄 (2015 年版 )》), and the remaining funds are proposed to be used for replenishment of working capital or repayment of interest-bearing liabilities.

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The Company has posted the “Public Issuance of 2019 Green Corporate Bonds Offering Memorandum (to qualified investors)* 《公開發行 2019 年綠色公司債券 募集說明書（面向合格投資者）》” and its related documents on the website of the Shanghai Stock Exchange ( 上海證券交易所 ) (www.sse.com.cn).

The unaudited financial information as of 30 September 2019 of the Company in relation to the Issue (at consolidation level and at the parent company level) (prepared under the China Accounting Standards for Business Enterprises) are set out in the appendix to this announcement.

Holders of Shares or other securities of the Company and potential investors of the Company should exercise caution when dealing in the Shares or other securities of the Company.

By order of the Board Datang Environment Industry Group Co., Ltd.* Jin Yaohua Chairman

Beijing, the PRC, 10 December 2019

As of the date of this announcement, the non-executive Directors are Mr. Jin Yaohua, Mr. Liu Quancheng, Mr. Liu Ruixiang, Mr. Li Zhenyu; executive Directors are Mr. Hou Guoli and Mr. Wang Yanwen; and the independent non-executive Directors are Mr. Ye Xiang, Mr. Mao Zhuanjian and Mr. Gao Jiaxiang.

• For identification purposes only

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APPENDIX

CONSOLIDATED BALANCE SHEET

Unit of amount: RMB

Items Line Current assets: 1 Cash 2 △Settlement reserves 3 △Placements with banks and other financial institutions 4 ☆Financial assets held for trading 5 Financial assets at fair value through profit or loss 6 Derivative financial assets 7 Bills receivable 8 Trade receivables 9 Including: Electricity charges receivable 10 Heat charges receivable 11 Prepayments 12 △Premium receivables 13 △Receivables from reinsurers 14 △Deposits receivable from reinsurance 15 Other receivables 16 △Financial assets held under resale agreements 17 Inventory 18 Including: Raw materials 19 Fuel 20 Stock inventory (finished products) 21 ☆Contract assets 22 Held-for-sale assets 23 Non-current assets due within one year 24 Other current assets 25 Total current assets 26	Balance at the beginning of the year – 1,749,652,047.01 493,232,729.92 7,905,272,425.83 342,675,144.91 217,065,511.06 153,520,201.49 76,163,532.73 69,361,888.89 982,435,553.53 329,118,951.04 12,172,972,564.79	Balance at the end of the period – 1,039,989,465.17 493,185,554.21 8,413,798,810.54 781,870,680.83 177,108,927.68 215,212,615.05 107,553,684.30 90,070,853.76 674,029,613.59 397,685,454.87 12,192,881,121.94

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Items Line Non-current assets: 27 △Loans and advances granted 28 ☆Debt investment 29 Financial assets available for sale 30 ☆Other debt investment 31 Held-to-maturity investment 32 Long-term receivables 33 Long-term equity investment 34 ☆Other equity instrument investment 35 ☆Other non-current financial assets 36 Funds to branches 37 Investment properties 38 Fixed assets 39 Construction in progress 40 Productive biological assets 41 Oil and gas assets 42 Intangible assets 43 Development costs 44 Goodwill 45 Long-term deferred expenses 46 Deferred income tax assets 47 Other non-current assets 48 Including: Physical assets reserve specifically authorized 49 Total non-current assets 50 Total assets 51	Balance at the beginning of the year – 93,428,949.52 7,171,495.00 6,283,908,165.25 1,391,244,757.76 111,566,773.90 116,114,059.96 203,473,870.30 45,395,286.32 34,705,484.48 8,287,008,842.49 20,459,981,407.28	Balance at the end of the period – 93,428,949.52 7,171,495.00 5,778,871,431.16 1,663,269,221.90 101,703,064.84 131,463,334.91 373,957,924.44 45,233,989.83 8,195,099,411.60 20,387,980,533.54

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Items Line Current liabilities: 52 Short-term borrowings 53 △Borrowings from central bank 54 △Absorbing deposit and interbank deposit 55 △Placements from banks and other financial institutions 56 ☆Financial liabilities held for trading 57 Financial liabilities at fair value through profit or loss 58 Derivative financial liabilities 59 Bills payable 60 Trade payables 61 Advances received 62 ☆Contract liabilities 63 Inter office account 64 △Amount from sales of repurchased financial assets 65 △Handling charge and commissions payable 66 Staff remuneration payable 67 Including: Salary payable 68 Benefits payable 69 Including: Employee bonus and welfare fund 70 Tax charge payable 71 Including: Tax payable 72 Other payables 73 △Payables to reinsurers 74 △Deposits for insurance contracts 75 △Client money received for acting as securities trading agent 76 △Client money received for acting as securities underwriter 77 Held-for-sale liabilities 78 Non-current liabilities due within one year 79 Other current liabilities 80 Total current liabilities 81	Balance at the beginning of the year – 1,420,223,206.98 227,909,632.22 6,253,352,149.75 312,064,108.66 911,001.02 67,193,894.14 64,381,564.47 1,310,342,489.88 603,624,463.49 10,195,620,946.14	Balance at the end of the period – 2,500,024,384.52 149,687,460.45 5,099,510,910.39 821,770,496.17 1,185,517.18 12,600.00 35,281,044.13 33,580,165.26 1,042,253,090.97 719,630,941.06 10,369,343,844.87

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Items Line Non-current liabilities: 82 Long-term borrowings 83 Debentures payable 84 Including: Preferred shares 85 Perpetual bonds 86 Long-term payables 87 Long-term employee remuneration payable 88 Accrued liabilities 89 Deferred income 90 Fund appropriated by the parent company 91 Including: Unified-borrowing and unified-lending 92 Deferred income tax liabilities 93 Other non-current liabilities 94 Including: Special reserve fund 95 Total non-current liabilities 96 Total liabilities 97	Balance at the beginning of the year – 2,906,047,678.30 6,120,000.00 32,870,336.39 2,945,038,014.69 13,140,658,960.83	Balance at the end of the period – 2,785,541,717.66 5,661,899.99 31,764,662.87 2,822,968,280.52 13,192,312,125.39

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Items Line Owners’ equity (or shareholders’ equity): 98 Paid-in capital (share capital) 99 Government capital 100 Including: State-owned legal person’s capital 101 Collective capital 102 Private capital 103 Including: Personal capital 104 Foreign capital 105 Less: Investment returned 106 Net paid-in capital (share capital) 107 Other equity instruments 108 Including: Preference shares 109 Perpetual bonds 110 Capital reserves 111 Less: Treasury stock 112 Other comprehensive income 113 Including: Foreign currency translation differences 114 Special reserve 115 Surplus reserves 116 Including: Statutory reserves 117 Discretionary reserve 118 Reserve funds 119 Enterprise development fund 120 Profit return for investment 121 △Provision for general risk 122 Unallocated profits 123 Total equity attributable to the parent’s owners (or shareholders) 124 Minority interests 125 Total owners’ equity (or shareholders’ equity) 126 Total liabilities and owners’ equity (or shareholders’ equity) 127	Balance at the beginning of the year – 2,967,542,000.00 2,356,580,000.00 2,356,580,000.00 610,962,000.00 2,967,542,000.00 1,315,484,013.05 1,528,909.07 -316,861.68 350,103,353.44 350,103,353.44 2,486,749,256.34 7,121,407,531.90 197,914,914.55 7,319,322,446.45 20,459,981,407.28	Balance at the end of the period – 2,967,542,000.00 2,356,580,000.00 2,356,580,000.00 610,962,000.00 2,967,542,000.00 1,315,484,013.05 783,739.78 -1,062,030.97 350,103,353.44 350,103,353.44 2,364,821,627.02 6,998,734,733.29 196,933,674.86 7,195,668,408.15 20,387,980,533.54

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CONSOLIDATED INCOME STATEMENT

Unit of amount: RMB

			Amount for	Amount for	Amount for
	Items	Line	this month	this year	last year
I.	Total Operating Revenue	1	492,960,458.32	4,022,688,225.75	4,806,689,140.09
	Including: Operating revenue	2	492,960,458.32	4,022,688,225.75	4,806,689,140.09
	Including: Revenue from principal business	3	490,789,544.11	4,007,826,260.99	4,789,242,407.86
	Including: (1) Electricity sales revenue	4
	(2) Thermal Sales Revenue	5
	(3) Others	6	490,789,544.11	4,007,826,260.99	4,789,242,407.86
	Other business income	7	2,170,914.21	14,861,964.76	17,446,732.23
	△Interest income	8
	△Premium earned	9
	△Handling fee and commission income	10
II.	Total Operating Cost	11	427,034,366.90	3,825,292,971.26	4,254,558,814.55
	Including: Operating cost	12	374,627,643.13	3,250,672,668.83	3,930,299,590.44
	Including: Cost of principal business	13	370,715,955.76	3,218,805,597.70	3,908,121,841.94
	Including: (1) Electricity sales Cost	14
	(2) Thermal sales cost	15
	(3) Others	16	370,715,955.76	3,218,805,597.70	3,908,121,841.94
	Other business cost	17	3,911,687.37	31,867,071.13	22,177,748.50
	△Interest expenses	18
	△Handling fee and commission expenses	19
	△Surrender value	20
	△Net cash in compensation	21
	△Net provisions for insurance contract	22
	△Policy payment expense	23
	△Reinsurance expenses	24
	Taxes and surcharges	25	4,516,942.94	25,301,875.38	25,826,059.61
	Sales expenses	26	3,500,546.88	24,623,723.54	34,669,230.74
	Administration expenses	27	24,717,795.47	227,123,214.82	136,501,463.58
	Party Construction expenses	28	18,118.41	129,611.29
	Research and development expenses	29	1,850,648.95	8,047,063.27	3,191,662.47
	Financial expenses	30	17,820,789.53	177,722,584.75	118,923,365.44
	Including: Interest expenses	31	19,056,717.47	171,337,236.65	143,926,832.84
	Interest income	32	2,324,671.94	7,953,452.70	10,163,581.26
	Net exchange gains	33
	Net exchange losses	34	4,947.24	-4,369.76	-18,244,696.99
	Asset impairment losses	35		111,801,840.67	5,147,442.27
	☆Credit impairment loss	36
	Others	37
	Add: Other income	38	14,423,359.78	72,030,826.74	69,756,640.74

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			Amount for	Amount for	Amount for
	Items	Line	this month	this year	last year
	Investment income (Loss marked with “-”)	39
	Including: Income from investment in
	associates and joint ventures	40
	△Exchange gains (Losses marked with “-”)	41
	☆Gains on net exposure hedges (Losses marked
	with “-”)	42
	Gains from change in fair value (Losses marked
	with “-”)	43
	Gains from disposal of assets (Losses marked
	with “-”)	44
III.	Operating profit (Loss marked with “-”)	45	80,349,451.20	269,426,081.23	621,886,966.28
	Add: Non-operating income	46	25,257.92	434,327.94	2,015,937.89
	Government grants	47	18,867.92	18,867.92	462,865.92
	Gains from debt restructuring	48
	Less: Non-operating expenses	49	551,026.65	758,669.35	1,980,736.27
	Loss for debt restructuring	50
IV.	Total profit (Loss marked with “-”)	51	79,823,682.47	269,101,739.82	621,922,167.90
	Less: Income tax expenses	52	-1,942,711.55	59,640,498.68	111,028,603.71
V.	Net profit (Net loss marked with “-”)	53	81,766,394.02	209,461,241.14	510,893,564.19
	(I) Items classified according to ownership:	54	–	–	–
	Net profit attributable to the owners of parent
	company	55	81,009,592.90	204,501,990.68	498,274,081.81
	Minority interests	56	756,801.12	4,959,250.46	12,619,482.38
	(II)Items classified by continuing operations:	57	–	–	–
	Net profit from continuing operation	58	81,766,394.02	209,461,241.14	510,893,564.19
	Net profit from discontinued operation	59
VI.	Net other comprehensive income after tax	60	-634,834.42	-1,330,659.44	-1,659,742.41
	Net other comprehensive income after tax
	attributable to the owners of parent company	61	-355,507.27	-745,169.29	-1,659,742.41
	(I) Other comprehensive income that cannot be
	reclassified to profit or loss in subsequent
	periods	62
	1. Changes arising from the remeasurement of
	defined benefit plans	63
	2. Other comprehensive income under equity
	method that cannot be reclassified into
	profit or loss	64
	☆3. Changes in fair value of investment in other
	equity instruments	65

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					Amount for	Amount for	Amount for
	Items			Line	this month	this year	last year
	☆4.		Changes in fair value of the Company’s own
			credit risk	66
		5.	Others	67
	(II)Other comprehensive income that will be
			reclassified to profit or loss	68	-355,507.27	-745,169.29	-1,659,742.41
		1.	Other comprehensive income that can be
			reclassified into profit or loss under equity
			method	69
	☆2.		Changes in fair value of other debt
			investments	70
		3.	Gains and losses from changes in fair value
			of available-for-sale financial assets	71
	☆4.		Amount of financial assets reclassified into
			other comprehensive income	72
		5.	Gains and losses from held-to-maturity
			investment reclassified as available-for-
			sale financial assets	73
	☆6. Credit impairment Provisions for other debt
			investment	74
		7.	Reserves for cash flows hedges (effective
			part of hedging gains and losses from cash
			flows)	75
		8.	Exchange differences from retranslation of
			financial statements	76	-355,507.27	-745,169.29	-1,659,742.41
		9.	Others	77
	*	Net other comprehensive income after tax
			attributable to minority shareholders	78	-279,327.15	-585,490.15
**VII. **	Total		comprehensive income	79	81,131,559.60	208,130,581.70	509,233,821.78
	Total		comprehensive income attributable to the
		owners of parent company		80	80,654,085.63	203,756,821.39	498,120,818.87
	*	Total comprehensive income attributable to
			minority shareholders	81	477,473.97	4,373,760.31	11,113,002.91
VIII.	Earnings per share:			82	–	–	–
	Basic		earnings per share	83
	Diluted earnings per share			84

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CONSOLIDATED CASH FLOWS STATEMENT

Unit of amount: RMB

			Amount for	Amount for
Items		Line	last period	this period
I.	Cash flows generated from operating activities:	1	–	–
	Cash from sales of goods and provision of
	labour services	2	4,464,045,236.07	3,426,139,454.81
	△Net increase in customer deposits and interbank
	deposits	3
	△Net increase in borrowings from central bank	4
	△Net increase in borrowings from other financial
	institutions	5
	△Cash received from premium of original
	insurance contract	6
	△Net cash inflow from reinsurance business	7
	△Net increase in deposit of the insured and
	investment	8
	△Net increase in disposal of financial assets at
	fair value through profit or loss	9
	△Cash received from interest, fee and commission	10
	△Net increase of placements from banks and
	other financial institutions	11
	△Net increase of repurchase business	12
	Tax refunds received	13	60,336,528.27	72,226,291.66
	Cash from other operating activities	14	1,956,997,796.39	130,204,839.31
	Sub-total of cash inflows from operating
	activities	15	6,481,379,560.73	3,628,570,585.78

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Items Line Cash paid for purchase of goods and engagement of labour services 16 △Net increase of customer loans and advances 17 △Net increase of deposits in central banks and other banks 18 △Cash paid for the compensation under the original insurance contract 19 △Cash paid for interest, fee and commission 20 △Cash paid for policy bonus 21 Cash paid to and for employees 22 Tax payments 23 Cash used in other operating activities 24 Sub-total of cash outflows from operating activities 25 Net cash flow generated from operating activities 26 II. Cash flows generated from investing activities: 27 Cash received from disposal of investment 28 Cash from investment gains 29 Net cash inflow on disposal of fixed assets, intangible assets and other long-term assets Net cash inflow on disposal of subsidiaries and other operational units 30 Cash generated from other investing activities 31 Sub-total of cash inflows from investing activities 32	Amount for last period 4,172,045,498.64 265,302,099.87 357,763,574.64 1,807,800,869.43 6,602,912,042.58 -121,532,481.85 – -14,606,630.56 29,076,556.53 34,255.00	Amount for this period 4,028,603,644.09 234,683,916.75 338,418,460.42 106,517,992.36 4,708,224,013.62 -1,079,653,427.84 – 10,697.00 19,336,738.03

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Items Line Cash paid for acquisition of fixed assets, intangible assets and other long-term assets 33 Cash paid for investments 34 △Net increase of policy loans 35 Net cash paid for acquisition of subsidiaries and other operational units 36 Cash paid for other investing activities 37 Sub-total of cash outflows from investing activities 38 Net cash flow generated from investing activities 39 III. Cash flow generated from financing activities: 40 Cash received from investors 41 Including: Cash received from absorbing minority shareholders’ investment by subsidiaries 42 Cash received from obtaining borrowings 43 △Cash received from issuing bonds 44 Cash received from other financing activities 45 Sub-total of cash inflows from financing activities 46	Amount for last period 14,504,180.97 559,324,861.47 559,324,861.47 -544,820,680.50 – 12,924,939.17 2,768,619,698.95	Amount for this period 19,347,435.03 449,463,068.37 50,000.00 449,513,068.37 -430,165,633.34 – 4,377,272,369.94

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Items Line Cash paid for repayment of debt 47 Cash paid for distribution of dividends, profit or payment of interests 48 Including: Di vidend and profit of minority shareholders paid by subsidiaries 49 Cash paid for other financing activities 50 Sub-total of cash outflows from financing activities 51 Net cash flow generated from financing activities 52 IV. Effect of fluctuations in exchange rate on cash and cash equivalents 53 V. Net increase in cash and cash equivalents 54 Add: Ba lance of cash and cash equivalents at the beginning of the period 55 VI. Balance of cash and cash equivalent at the end of the period 56 57	Amount for last period 2,781,544,638.12 2,112,944,207.67 256,521,997.36 2,369,466,205.03 412,078,433.09 5,433,066.53 -248,841,662.73 1,666,080,023.74 1,417,238,361.01	Amount for this period 4,377,272,369.94 3,316,991,282.94 262,737,928.15 5,355,000.00 3,579,729,211.09 797,543,158.85 213,320.49 -712,062,581.84 1,712,724,032.11 1,000,661,450.27

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BALANCE SHEET

Unit of amount: RMB

Items Line Current assets: 1 Cash 2 △Settlement reserves 3 △Placements with banks and other financial institutions 4 ☆Financial assets held for trading 5 Financial assets at fair value through profit or loss 6 Derivative financial assets 7 Bills receivable 8 Trade receivables 9 Including: Electricity charges receivable 10 Heat charges receivable 11 Prepayments 12 △Premium receivables 13 △Receivables from reinsurers 14 △Deposits receivable from reinsurance 15 Other receivables 16 △Financial assets held under resale agreements 17 Inventory 18 Including: Raw materials 19 Fuel 20 Stock inventory (finished products) 21 ☆Contract assets 22 Held-for-sale assets 23 Non-current assets due within one year 24 Other current assets 25 Total current assets 26	Balance at the beginning of the year – 1,340,987,660.39 238,950,607.27 4,052,653,848.60 108,852,372.38 533,460,190.63 46,399,364.04 46,399,364.04 464,646,818.83 258,214,110.20 7,044,164,972.34	Balance at the end of the period – 801,907,968.35 391,198,690.11 5,048,835,682.20 222,815,500.32 487,504,159.25 61,733,012.91 61,733,012.81 278,213,333.60 413,058,409.01 7,705,266,755.75

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Items Line Non-current assets: 27 △Loans and advances granted 28 ☆Debt investment 29 Financial assets available for sale 30 ☆Other debt investment 31 Held-to-maturity investment 32 Long-term receivables 33 Long-term equity investment 34 ☆Other equity instrument investment 35 ☆Other non-current financial assets 36 Funds to branches 37 Investment properties 38 Fixed assets 39 Construction in progress 40 Productive biological assets 41 Oil and gas assets 42 Intangible assets 43 Development costs 44 Goodwill 45 Long-term deferred expenses 46 Deferred income tax assets 47 Other non-current assets 48 Including: Physical assets reserve specifically authorized 49 Total non-current assets 50 Total assets 51	Balance at the beginning of the year – 687,809,994.76 7,171,495.00 5,129,151,948.71 1,151,729,149.14 19,123,798.43 83,508,707.71 270,628,132.51 7,377,006.14 28,424,362.37 7,384,924,594.77 14,429,089,567.11	Balance at the end of the period – 687,809,994.76 7,171,495.00 4,701,792,731.51 1,339,266,670.86 17,327,558.69 90,056,243.88 432,405,617.26 7,317,741.54 7,283,148,053.50 14,988,414,809.25

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Items Line Current liabilities: 52 Short-term borrowings 53 △Borrowings from central bank 54 △Absorbing deposit and interbank deposit 55 △Placements from banks and other financial institutions 56 ☆Financial liabilities held for trading 57 Financial liabilities at fair value through profit or loss 58 Derivative financial liabilities 59 Bills payable 60 Trade payables 61 Advances received 62 ☆Contract liabilities 63 Inter office account 64 △Amount from sales of repurchased financial assets 65 △Handling charge and commissions payable 66 Staff remuneration payable 67 Including: Salary payable 68 Benefits payable 69 Including: Employee bonus and welfare fund 70 Tax charge payable 71 Including: Tax payable 72 Other payables 73 △Payables to reinsurers 74 △Deposits for insurance contracts 75 △Client money received for acting as securities trading agent 76 △Client money received for acting as securities underwriter 77 Held-for-sale liabilities 78 Non-current liabilities due within one year 79 Other current liabilities 80 Total current liabilities 81	Balance at the beginning of the year – 1,192,000,000.00 77,735,770.96 2,420,545,706.40 172,415,113.77 56,731,607.68 55,078,968.20 899,883,963.44 484,811,463.49 5,304,123,625.74	Balance at the end of the period – 2,340,000,000.00 37,787,220.84 2,214,196,752.96 290,232,647.13 80,689.36 200,741.74 28,879,891.53 27,533,588.18 656,875,022.97 526,677,941.06 6,094,930,907.59

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Items Line Non-current liabilities: 82 Long-term borrowings 83 Debentures payable 84 Including: Preferred shares 85 Perpetual bonds 86 Long-term payables 87 Long-term employee remuneration payable 88 Accrued liabilities 89 Deferred income 90 Fund appropriated by the parent company 91 Including: Unified-borrowing and unified-lending 92 Deferred income tax liabilities 93 Other non-current liabilities 94 Including: Special reserve fund 95 Total non-current liabilities 96 Total liabilities 97	Balance at the beginning of the year – 2,199,097,289.00 18,800,336.39 2,217,897,625.39 7,522,021,251.13	Balance at the end of the period – 2,087,729,328.36 17,694,662.87 2,105,423,991.23 8,200,354,898.82

– 18 –

Items Line Owners’ equity (or shareholders’ equity): 98 Paid-in capital (share capital) 99 Government capital 100 Including: State-owned legal person’s capital 101 Collective capital 102 Private capital 103 Including: Personal capital 104 Foreign capital 105 Less: Investment returned 106 Net paid-in capital (or share capital) 107 Other equity instruments 108 Including: Preference shares 109 Perpetual bonds 110 Capital reserves 111 Less: Treasury stock 112 Other comprehensive income 113 Including: Foreign currency translation differences 114 Special reserve 115 Surplus reserves 116 Including: Statutory reserves 117 Discretionary reserve 118 Reserve funds 119 Enterprise development fun 120 Profit return for investment 121 △Provision for general risk 122 Unallocated profits 123 Total equity attributable to the parent’s owners (or shareholders) 124 Minority interests 125 Total owners’ equity (or shareholders’ equity) 126 Total liabilities and owners’ equity (or shareholders’ equity) 127	Balance at the beginning of the year – 2,967,542,000.00 2,356,580,000.00 2,356,580,000.00 610,962,000.00 2,967,542,000.00 1,299,411,843.55 1,845,770.75 350,103,353.44 350,103,353.44 2,288,165,348.24 6,907,068,315.98 6,907,068,315.98 14,429,089,567.11	Balance at the end of the period – 2,967,542,000.00 2,356,580,000.00 2,356,580,000.00 610,962,000.00 2,967,542,000.00 1,299,411,843.55 1,845,770.75 350,103,353.44 350,103,353.44 2,169,156,942.69 6,788,059,910.43 6,788,059,910.43 14,988,414,809.25

– 19 –

INCOME STATEMENT

Unit of amount: RMB

				Amount for	Amount for	Amount for
Items			Line	this month	this year	last year
I.	Total	Operating Revenue	1	337,458,086.45	2,908,927,849.78	3,257,784,249.72
		Including: Operating revenue	2	337,458,086.45	2,908,927,849.78	3,257,784,249.72
		Including: Revenue from principal business	3	336,388,602.77	2,898,528,239.38	3,245,775,191.90
		Including: (1) Electricity sales revenue	4
		(2) Thermal sales revenue	5
		(3) Others	6	336,388,602.77	2,898,528,239.38	3,245,775,191.90
		Other business income	7	1,069,483.68	10,399,610.40	12,009,057.82
	△	Interest income	8
	△	Premium earned	9
	△	Handling fee and commission income	10
II.	Total	Operating Cost	11	279,792,278.16	2,738,291,615.43	2,762,222,801.21
		Including: Operating cost	12	242,324,852.58	2,288,089,886.07	2,563,195,746.27
		Including: Cost of principal business	13	240,262,256.60	2,276,985,446.48	2,557,918,473.28
		Including: (1) Electricity sales cost	14
		(2) Thermal sales cost	15
		(3) Others	16	240,262,256.60	2,276,985,446.48	2,557,918,473.28
		Other business cost	17	2,062,595.98	11,104,439.59	5,277,272.99
	△	Interest expenses	18
	△	Handling fee and commission expenses	19
	△	Surrender value	20
	△	Net cash in compensation	21
	△	Net provisions for insurance contract	22
	△	Policy payment expense	23
	△	Reinsurance expenses	24
		Taxes and surcharges	25	2,803,892.69	14,882,852.47	17,061,287.12
		Sales expenses	26	696,301.21	5,369,947.00	6,800,265.19
		Administration expenses	27	19,116,258.26	189,792,312.02	87,137,552.53
		Party Construction expenses	28	14,268.41	36,983.94
		Research and development expenses	29	1,373,311.79	7,059,740.19
		Financial expenses	30	13,477,661.63	126,443,579.30	90,582,532.44
		Including: Interest expenses	31	14,857,396.89	125,465,968.98	106,993,746.47
		Interest income	32	1,498,576.06	5,663,847.86	4,487,721.63
		Net exchange gains	33
		Net exchange losses	34	9,946.75	-199,098.72	-12,924,939.17
		Asset impairment losses	35		106,653,298.38	-2,554,582.34
		☆Credit impairment loss	36

– 20 –

				Amount for	Amount for	Amount for
Items			Line	this month	this year	last year
		Others	37
		Add: Other income	38	13,731,952.47	66,721,540.78	66,198,068.63
		Investment income (Losses marked with “-”)	39	271,147.72	10,861,156.06	25,691,656.23
		Including: Income from investment in
		associates and joint ventures	40			25,691,656.23
	△	Exchange gains (Losses marked with “-”)	41
	☆	Gains on net exposure hedges (Losses marked
		with “-”)	42
		Gains from change in fair value (Losses marked
		with “-”)	43
		Gains from disposal of assets (Losses marked
		with “-”)	44
III.	Operating profit (Loss marked with “-”)		45	71,668,908.48	248,218,931.19	587,451,173.37
		Add: Non-operating income	46	25,257.92	423,942.50	580,453.92
		Government grants	47	18,867.92	18,867.92	462,865.92
		Gains from debt restructuring	48
		Less: Non-operating expenses	49		1,264.58	163,708.39
		Loss for debt restructuring	50
IV.	Total profit (Total loss marked with “-”)		51	71,694,166.40	248,641,609.11	587,867,918.90
		Less: Income tax expenses	52	-5,534,602.86	41,220,394.66	91,816,175.02
V.	Net profit (Net loss marked with “-”)		53	77,228,769.26	207,421,214.45	496,051,743.88
	(I)	Items classified according to ownership:	54	–	–	–
		Net profit attributable to the owners of parent
		company	55	77,228,769.26	207,421,214.45	496,051,743.88
		Minority interests	56
	(II)	Items classified by continuing operations:	57	–	–	–
		Net profit from continuing operation	58	77,228,769.26	207,421,214.45	496,051,743.88
		Net profit from discontinued operation	59

– 21 –

Amount for Amount for Amount for this month this year last year

Items			Line
VI.	Net other comprehensive income after tax		60
	Net other comprehensive income after tax attributable
	to the owners of parent company		61
	(I)	Other comprehensive income that cannot be
		reclassified to profit or loss in subsequent
		periods	62
		1. Changes arising from the remeasurement of
		defined benefit plans	63
		2. Other comprehensive income under equity
		method that cannot be reclassified into
		profit or loss	64
		☆3. Changes in fair value of investment in other
		equity instruments	65
		☆4. Changes in fair value of the Company’s own
		credit risk	66
		5. Others	67
	(II)	O ther comprehensive income that will be
		reclassified to profit or loss	68
		1. Other comprehensive income that can be
		reclassified into profit or loss under equity
		method	69
	☆	2. Changes in fair value of other debt
		investments	70
		3. Gains and losses from changes in fair value
		of available-for-sale financial assets	71
	☆	4. Amount of financial assets reclassified into
		other comprehensive income	72
		5. Gains and losses from held-to-maturity
		investment reclassified as available-for-
		sale financial assets	73
	☆	6. Credit impairment provisions for other debt
		investment	74
		7. Reserves for cash flows hedges (effective
		part of hedging gains and losses from cash
		flows)	75
		8. Exchange differences from retranslation of
		financial statements	76
		9. Others	77
	*	Net other comprehensive income after tax
		attributable to minority shareholders	78

– 22 –

			Amount for	Amount for	Amount for
Items		Line	this month	this year	last year
**VII. **	Total comprehensive income	79	77,228,769.26	207,421,214.45	496,051,743.88
	Total comprehensive income attributable to the
	owners of parent company	80	77,228,769.26	207,421,214.45	496,051,743.88
	* Total comprehensive income attributable to
	minority shareholders	81
VIII.	Earnings per share:	82	–	–	–
Basic earnings per share		83
Diluted earnings per share		84

– 23 –

CASH FLOWS STATEMENT

Unit of amount: RMB

Items	Items		Amount for	Amount for
		Line	last period	this period
I.	Cash flows generated from operating
	activities:	1	–	–
	Cash from sales of goods and provision of
	labour services	2	2,681,361,554.12	1,764,171,682.02
	△Net increase in customer deposits and
	interbank deposits	3
	△Net increase in borrowings from central
	bank	4
	△Net increase in borrowings from other
	financial institutions	5
	△Cash received from premium of original
	insurance contract	6
	△Net cash inflow from reinsurance business	7
	△Net increase in deposit of the insured and
	investment	8
	△Net increase in disposal of financial assets
	at fair value through profit or loss	9
	△Cash received from interest, fee and
	commission	10
	△Net increase of placements from banks
	and other financial institutions	11
	△Net increase of repurchase business	12
	Tax refunds received	13	60,288,843.27	66,128,883.40
	Cash from other operating activities	14	1,545,606,212.33	81,474,051.15
	Sub-total of cash inflows from
	operating activities	15	4,287,256,609.72	1,911,774,616.57

– 24 –

Amount for Amount for Line last period this period

Items

Cash paid for purchase of goods and engagement of labour services 16 △Net increase of customer loans and advances 17 △Net increase of deposits in central banks and other banks 18 △Cash paid for the compensation under the original insurance contract 19 △Cash paid for interest, fee and commission 20 △Cash paid for policy bonus 21 Cash paid to and for employees 22 Tax payments 23 Cash used in other operating activities 24 Sub-total of cash outflows from operating activities 25 Net cash flow generated from operating activities 26 II. Cash flows generated from investing activities: 27 Cash received from disposal of investment 28 Cash from investment gains 29 Net cash inflow on disposal of fixed assets, intangible assets and other long- term assets 30 Net cash inflow on disposal of subsidiaries and other operational units 31 Cash generated from other investing activities 32 Sub-total of cash inflows from investing activities 33	2,512,505,427.40 166,159,734.74 277,123,532.47 1,416,049,616.73 4,371,838,311.34 -84,581,701.62 – 29,076,556.53 34,255.00 29,110,811.53	2,336,470,239.57 171,677,703.00 252,241,167.58 2,550,841.98 2,762,939,952.13
		-851,165,335.56
		– 9,945,000.00 9,945,000.00

– 25 –

Items Line Cash paid for acquisition of fixed assets, intangible assets and other long-term assets 34 Cash paid for investments 35 △Net increase of policy loans 36 Net cash paid for acquisition of subsidiaries and other operational units 37 Cash paid for other investing activities 38 Sub-total of cash outflows from investing activities 39 Net cash flow generated from investing activities 40 III. Cash flow generated from financing activities: 41 Cash received from investors 42 Including: Cash received from absorbing minority shareholders’ investment by subsidiaries 43 Cash received from obtaining borrowings 44 △Cash received from issuing bonds 45 Cash received from other financing activities 46 Sub-total of cash inflows from financing activities 47 Cash paid for repayment of debt 48 Cash paid for distribution of dividends, profit or payment of interests 49 Including: Di vidend and profit of minority shareholders paid by subsidiaries 50 Cash paid for other financing activities 51 Sub-total of cash outflows from financing activities 52 Net cash flow generated from financing activities 53	Amount for last period 468,703,986.28 102,582,630.56 571,286,616.84 -542,175,805.31 – 12,924,939.17 2,552,274,031.19 2,565,198,970.36 1,871,611,207.67 191,313,524.81 2,062,924,732.48 502,274,237.88	Amount for this period 447,849,689.06 78,500,000.00 526,349,689.06
		-516,404,689.06
		– 4,099,384,182.42 4,099,384,182.42
		3,058,885,665.49 212,207,283.07 3,271,092,948.56
		828,291,233.86

– 26 –

• Items Amount for Amount for Line last period this period

• IV. Effect of fluctuations in exchange rate on cash and cash equivalents 54 199,098.72

• V. Net increase in cash and cash equivalents 55 -124,483,269.05 -539,079,692.04 Add: Ba lance of cash and cash equivalents at the beginning of the period 56 1,172,154,711.91 1,340,987,660.39

• VI. Balance of cash and cash equivalent at the end of the period 57 1,047,671,442.86 801,907,968.35

– 27 –