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

Aug 6, 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 RENEWABLE 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 2018 annual general meeting of the Company dated 13 June 2019 (the “ Circular ”) and the announcement on poll results of the 2018 annual general meeting dated 27 June 2019. Unless otherwise specified, the terms used herein shall have the same meanings as those defined in the Circular.

At the 2018 annual general meeting convened on 27 June 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 applied for the public issuance of the green renewable corporate bonds with a principal amount of not exceeding RMB500 million to qualified investors in the PRC and with a term of not more than 5+N years (5+N years inclusive) (the “ Issue ”). The Issue is still subject to necessary approvals from the China Securities Regulatory Commission and/or other relevant regulatory authorities. 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 ) are the

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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.

The Company has posted the “Public Issuance of 2019 Green Renewable Corporate Bonds Offering Memorandum (to qualified investors)* 《公開發行2019年綠色可續期 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) (http://bond.sse.com.cn/bridge/ information/index_detai.shtml?bound_id=10293). The Shanghai Stock Exchange has formally accepted the Company’s application on 6 August 2019.

The unaudited financial information for the first quarter of 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, 6 August 2019

As of the date of this announcement, the non-executive Directors are Mr. Jin Yaohua, Mr. Liu Chuandong, Mr. Liu Guangming, Mr. Li Yi, Mr. Deng Xiandong and Mr. Shen Zhen; 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 March 2019

Unit of amount: RMB

		Balance at	Balance at
		the beginning of	the end of
Items	Line	the year	the period
Current assets:	1	–	–
Cash	2	1,749,652,047.01	915,695,790.81
△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	493,232,729.92	359,922,665.53
Trade receivables	9	7,905,272,425.83	8,074,008,661.21
Including: Electricity charges receivable	10	–	–
Heat charges receivable	11	–	–
Prepayments	12	342,675,144.91	468,842,206.37
△Premium receivables	13	–	–
△Receivables from reinsurers	14	–	–
△Deposits receivable from reinsurance	15	–	–
Other receivables	16	217,065,511.06	193,323,428.74
△Financial assets held under resale agreements	17	–	–
Inventory	18	153,520,201.49	165,129,890.03
Including: Raw materials	19	76,163,532.73	80,967,872.15
Fuel	20	–	–
Stock inventory (finished products)	21	69,361,888.89	73,637,423.75
☆Contract assets	22	982,435,553.53	446,470,495.70
Held-for-sale assets	23	–	–
Non-current assets due within one year	24	–	–
Other current assets	25	329,118,951.04	342,063,314.22
Total current assets	26	12,172,972,564.79	10,965,456,452.61

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Unit of amount: RMB

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: P hysical 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 – – – 6,164,097,585.59 1,457,753,652.92 – – 108,280,432.41 119,045,018.31 – 201,091,497.10 45,706,334.63 – – 8,196,574,965.48 19,162,031,418.09

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Unit of amount: RMB

		Balance at	Balance at
		the beginning of	the end of
Items	Line	the year	the period
Current liabilities:	52	–	–
Short-term borrowings	53	1,420,223,206.98	1,432,111,394.50
△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	227,909,632.22	231,331,263.84
Trade payables	61	6,253,352,149.75	5,531,823,978.96
Advances received	62	–	–
☆Contract liabilities	63	312,064,108.66	428,364,234.24
Inter office account	64	–	–
△Amount from sales of repurchased financial
assets	65	–	–
△Handling charge and commissions payable	66	–	–
Staff remuneration payable	67	911,001.02	981,117.86
Including: Salary payable	68	–	4,490.03
Benefits payable	69	–	–
Including: Employee bonus and welfare fund	70	–	–
Tax charge payable	71	67,193,894.14	30,588,046.79
Including: Tax payable	72	64,381,564.47	28,814,020.84
Other payables	73	1,310,342,489.88	751,153,149.97
△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	603,624,463.49	608,471,240.30
Other current liabilities	80	–	–
Total current liabilities	81	10,195,620,946.14	9,014,824,426.46

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Unit of amount: RMB

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 – 2,766,225,680.80 – – – – – 6,061,252.76 31,115,167.74 – – – – – 2,803,402,101.30 11,818,226,527.76

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Unit of amount: RMB

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: F oreign 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 – -1,964,062.62 -3,809,833.37 – 350,103,353.44 350,103,353.44 – – – – – 2,526,559,565.29 7,157,724,869.16 186,080,021.17 7,343,804,890.33 19,162,031,418.09

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CONSOLIDATED INCOME STATEMENT

March 2019

Unit of amount: RMB

			Amount for	Amount for	Amount for
Items		Line	this month	this year	last year
I.	Total Operating Revenue	1	407,436,333.81	1,077,657,658.14	1,086,019,583.85
	Including: Operating revenue	2	407,436,333.81	1,077,657,658.14	1,086,019,583.85
	Including: Revenue from
	principal business	3	405,207,751.56	1,073,235,872.80	1,082,824,258.20
	Including: (1) E lectricity sales
	revenue	4	–	–	–
	(2) T hermal Sales
	Revenue	5	–	–	–
	(3) Others	6	405,207,751.56	1,073,235,872.80	1,082,824,258.20
	Other business income	7	2,228,582.25	4,421,785.34	3,195,325.65
	△Interest income	8	–	–	–
	△Premium earned	9	–	–	–
	△Handling fee and commission
	income	10	–	–	–
II.	Total Operating Cost	11	359,789,088.40	1,031,634,521.13	1,014,253,930.21
	Including: Operating cost	12	306,135,238.39	873,491,981.53	867,697,926.52
	Including: Cost of principal
	business	13	301,390,526.44	863,275,943.04	866,571,309.97
	Including: (1) E lectricity sales
	cost	14	–	–	–
	(2) T hermal sales
	cost	15	–	–	–
	(3) Others	16	301,390,526.44	863,275,943.04	866,571,309.97
	Other business cost	17	4,744,711.95	10,216,038.49	1,126,616.55
	△Interest expenses	18	–	–	–
	△Handling fee and commission
	expenses	19	–	–	–
	△Surrender value	20	–	–	–
	△Net cash in compensation	21	–	–	–
	△Net provisions for insurance
	contract	22	–	–	–

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Unit of amount: RMB

			Amount for	Amount for	Amount for
Items		Line	this month	this year	last year
	△Policy payment expense	23	–	–	–
	△Reinsurance expenses	24	–	–	–
	Taxes and surcharges	25	2,530,986.59	8,665,456.99	7,928,935.62
	Sales expenses	26	2,241,229.49	7,324,518.89	11,383,835.73
	Administration expenses	27	29,675,273.86	82,539,909.55	44,165,593.61
	Party Construction expenses	28	16,715.53	23,452.77	–
	Research and development
	expenses	29	5,191.71	689,477.02	1,201,264.49
	Financial expenses	30	19,201,168.36	58,923,177.15	83,076,374.24
	Including: Interest expenses	31	18,239,213.30	53,442,731.97	44,884,975.69
	Interest income	32	2,351,186.42	2,437,296.31	2,007,121.63
	Net exchange gains	33	–	–	–
	Net exchange losses	34	-53,039.72	266,857.97	38,351,858.67
	Asset impairment losses	35	–	–	-1,200,000.00
	☆Credit impairment loss	36	–	–	–
	Others	37	–	–	–
	Add: Other income	38	909,936.73	5,080,181.38	20,827,525.50
	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	–	–	–

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Unit of amount: RMB

			Amount for	Amount for	Amount for
Items		Line	this month	this year	last year
III.	Operating profit (Loss marked
	with “-” )	45	48,557,182.14	51,103,318.39	92,593,179.14
	Add: Non-operating income	46	1,171,328.53	1,291,059.53	1,495,270.05
	Government Grants	47	–	–	114,666.00
	Gains from debt restructuring	48	–	–	–
	Less: Non-operating expenses	49	1,260.80	1,428.46	1,226,340.27
	Loss for debt restructuring	50	–	–	–
IV.	Total profit (Loss marked with
	“-” )	51	49,727,249.87	52,392,949.46	92,862,108.92
	Less: Income tax expenses	52	7,061,649.48	21,673,056.13	27,297,697.33
V.	Net profit (Net loss marked
	with “-”)	53	42,665,600.39	30,719,893.33	65,564,411.59
	(I) It ems classified according to
	ownership:	54	–	–	–
	Net profit attributable to the
	owners of parent company	55	39,929,414.55	39,810,308.95	68,888,065.65
	Minority interests	56	2,736,185.84	-9,090,415.62	-3,323,654.06
	(II) I tems classified by
	continuing operations:	57	–	–	–
	Net profit from continuing
	operation	58	42,665,600.39	30,719,893.33	65,564,411.59
	Net profit from discontinued
	operation	59	–	–	–

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Unit of amount: RMB

				Amount for	Amount for	Amount for
Items			Line	this month	this year	last year
VI.	Net other comprehensive
	income after tax		60	30,704.80	-6,237,449.45	-3,588,947.14
	Net other comprehensive income
	after	tax attributable to the
	owners of parent company		61	17,194.69	-3,492,971.69	-3,588,947.14
	(I) Other comprehensive
		income that cannot be
		reclassified to profit
		or loss in subsequent
		periods	62	–	–	–
	1.	Changes arising
		from the re-
		measurement 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	–	–	–

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Unit of amount: RMB

					Amount for	Amount for	Amount for
Items				Line	this month	this year	last year
	(II) Other		comprehensive income
		that will be reclassified
		to	profit or loss	68	17,194.69	-3,492,971.69	-3,588,947.14
	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	–	–	–

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Unit of amount: RMB

			Amount for	Amount for	Amount for
Items		Line	this month	this year	last year
	☆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	17,194.69	-3,492,971.69	-3,588,947.14
	9. Others	77	–	–	–
	*Net other comprehensive
	income after tax attributable
	to minority shareholders	78	13,510.11	-2,744,477.76	–
VII.	Total comprehensive income	79	42,696,305.19	24,482,443.88	61,975,464.45
	Total comprehensive income
	attributable to the owners of
	parent company	80	39,946,609.24	36,317,337.26	65,299,118.51
	*Total comprehensive income
	attributable to minority
	shareholders	81	2,749,695.95	-11,834,893.38	-3,323,654.06
**VIII. **	Earnings per share:	82	–	–	–
	Basic earnings per share	83	–	–	–
	Diluted earnings per share	84	–	–	–

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CONSOLIDATED CASH FLOWS STATEMENT

March 2019

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	1,407,044,230.75	1,104,821,302.82
	△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	75,801.87	–
	△Net increase of placements from banks and
	other financial institutions	11	–	–
	△Net increase of repurchase business	12	–	–
	Tax refunds received	13	4,603,137.03	10,455,921.39
	Cash from other operating activities	14	836,206,497.97	420,266,215.18
Sub-total of cash inflows from operating activities		15	2,247,929,667.62	1,535,543,439.39

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Unit of amount: RMB

Items Line Cash paid for purchase of goods and engagement of labour services 16 △Net cash 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 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	Amount for last period 1,189,281,822.92 3,972,089.76 – – 880.00 – 82,966,383.84 137,990,648.21 887,365,667.06 2,301,577,491.79 -53,647,824.17 – – – – – – – 258,021,874.72 14,606,630.56 – – – 272,628,505.28 -272,628,505.28	Amount for this period 1,434,282,248.68 – – – – – 93,745,447.45 165,158,397.56 420,976,725.90 2,114,162,819.59 -578,619,380.20 – – – – – – – 127,724,803.27 – – – 50,000.00 127,774,803.27 -127,774,803.27

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Unit of amount: RMB

Items Line III. Cash flow generated from financing activities: 41 Cash received from investors 42 Including: C ash 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: D ividend 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 IV. Effect of fluctuations in exchange rate on cash and cash equivalents 54 V. Net increase in cash and cash equivalents 55 Add: Balance of cash and cash equivalents at the beginning of the period 56 VI. Balance of cash and cash equivalent at the end of the period 57	Amount for last period – – – 494,700,000.00 – – 494,700,000.00 492,199,545.00 39,499,917.80 2,489,743.47 – 531,699,462.80 -36,999,462.80 -2,366,494.64 -365,642,286.89 1,683,269,879.78 1,317,627,592.89	Amount for this period – – – 524,563,665.02 – – 524,563,665.02 593,465,698.19 58,399,602.36 – – 651,865,300.55 -127,301,635.53 -210,237.20 -833,906,056.20 1,734,640,502.01 900,734,445.81

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BALANCE SHEET

March 2019

Unit of amount: RMB

		Balance at	Balance at
		the beginning of	the end of
Items	Line	the year	the period
Current assets:	1	–	–
Cash	2	1,340,987,660.39	691,724,821.19
△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	238,950,607.27	193,290,156.72
Trade receivables	9	4,052,653,848.60	4,551,812,152.98
Including: Electricity charges receivable	10	–	–
Heat charges receivable	11	–	–
Prepayments	12	108,852,372.38	210,931,677.32
△Premium receivables	13	–	–
△Receivables from reinsurers	14	–	–
△Deposits receivable from reinsurance	15	–	–
Other receivables	16	533,460,190.63	494,809,984.21
△Financial assets held under resale agreements	17	–	–
Inventory	18	46,399,364.04	50,311,795.57
Including: Raw materials	19	46,399,364.04	50,311,795.57
Fuel	20	–	–
Stock inventory (finished products)	21	–	–
☆Contract assets	22	464,646,818.83	188,932,838.53
Held-for-sale assets	23	–	–
Non-current assets due within one year	24	–	–
Other current assets	25	258,214,110.20	255,531,552.78
Total current assets	26	7,044,164,972.34	6,637,344,979.30

– 17 –

Unit of amount: RMB

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 – – – 5,033,969,248.72 1,194,396,615.51 – – 18,527,671.36 84,148,668.80 – 268,746,523.29 7,377,006.14 – – 7,302,147,223.58 13,939,492,202.88

– 18 –

Unit of amount: RMB

		Balance at	Balance at
		the beginning of	the end of
Items	Line	the year	the period
Current liabilities:	52	–	–
Short-term borrowings	53	1,192,000,000.00	1,190,000,000.00
△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	77,735,770.96	135,521,933.96
Trade payables	61	2,420,545,706.40	2,346,578,758.52
Advances received	62	–	–
☆Contract liabilities	63	172,415,113.77	255,871,114.11
Inter office account	64	–	80,689.36
△Amount from sales of repurchased financial
assets	65	–	–
△Handling charge and commissions payable	66	–	–
Staff remuneration payable	67	–	68,273.35
Including: Salary payable	68	–	–
Benefits payable	69	–	–
Including: Employee bonus and welfare fund	70	–	–
Tax charge payable	71	56,731,607.68	25,510,566.86
Including: Tax payable	72	55,078,968.20	24,148,506.85
Other payables	73	899,883,963.44	402,032,383.28
△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	484,811,463.49	495,621,240.30
Other current liabilities	80	–	–
Total current liabilities	81	5,304,123,625.74	4,851,284,959.74

– 19 –

Unit of amount: RMB

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: U nified-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 – 2,105,497,291.50 – – – – – – 17,045,167.74 – – – – – 2,122,542,459.24 6,973,827,418.98

– 20 –

Unit of amount: RMB

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: F oreign 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 – – – 1,299,411,843.55 – 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 – – – – – 2,346,761,816.16 6,965,664,783.90 – 6,965,664,783.90 13,939,492,202.88

– 21 –

INCOME STATEMENT

March 2019

Unit of amount: RMB

			Amount for	Amount for	Amount for
Items		Line	this month	this year	last year
I.	Total Operating Revenue	1	292,680,251.51	831,516,441.57	749,831,195.89
	Including: Operating revenue	2	292,680,251.51	831,516,441.57	749,831,195.89
	Including: R evenue from
	principal business	3	291,166,838.51	828,212,723.34	747,234,312.83
	Including: (1) E lectricity sales
	revenue	4	–	–	–
	(2) T hermal sales
	revenue	5	–	–	–
	(3) Others	6	291,166,838.51	828,212,723.34	747,234,312.83
	Other business income	7	1,513,413.00	3,303,718.23	2,596,883.06
	△Interest income	8	–	–	–
	△Premium earned	9	–	–	–
	△Handling fee and commission
	income	10	–	–	–
II.	Total Operating Cost	11	251,164,187.99	761,457,974.76	667,919,859.84
	Including: Operating cost	12	206,531,564.58	646,319,209.68	573,701,104.93
	Including: C ost of principal
	business	13	205,711,490.68	643,623,243.68	572,946,430.85
	Including: (1) E lectricity sales
	cost	14	–	–	–
	(2) T hermal sales
	cost	15	–	–	–
	(3) Others	16	205,711,490.68	643,623,243.68	572,946,430.85
	Other business cost	17	820,073.90	2,695,966.00	754,674.08
	△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	–	–	–

– 22 –

Unit of amount: RMB

			Amount for	Amount for	Amount for
Items		Line	this month	this year	last year
	Taxes and surcharges	25	2,241,043.71	5,494,203.69	5,332,397.02
	Sales expenses	26	479,807.79	1,702,258.84	2,629,056.58
	Administration expenses	27	28,177,442.06	66,794,401.06	24,469,979.46
	Party Construction expenses	28	16,715.53	16,715.53	–
	Research and development
	expenses	29	–	–	–
	Financial expenses	30	13,734,329.85	41,147,901.49	61,787,321.85
	Including: Interest expenses	31	13,446,377.39	39,169,056.19	32,252,449.06
	Interest income	32	1,743,137.11	1,750,472.77	1,002,748.67
	Net exchange
	gains	33	–	–	–
	Net exchange
	losses	34	-47,850.78	154,814.20	30,275,847.60
	Asset impairment
	losses	35	–	–	–
	☆Credit
	impairment loss	36	–	–	–
	Others	37	–	–	–
	Add: Other income	38	553,992.84	3,372,523.48	20,227,525.50
	Investment income (Loss
	marked with “-”)	39	–	–	–
	Including: I ncome 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	–	–	–

– 23 –

Unit of amount: RMB

			Amount for	Amount for	Amount for
Items		Line	this month	this year	last year
III.	Operating profit (Loss marked
	with “-” )	45	42,070,056.36	73,430,990.29	102,138,861.55
	Add: Non-operating income	46	1,171,328.53	1,291,059.53	181,754.00
	Government Grants	47	–	–	114,666.00
	Gains from debt restructuring	48	–	–	–
	Less: Non-operating expenses	49	260.82	428.45	4,916.81
	Loss for debt restructuring	50	–	–	–
IV.	Total profit (Loss marked with
	“-” )	51	43,241,124.07	74,721,621.37	102,315,698.74
	Less: Income tax expenses	52	6,330,696.47	16,125,153.45	21,891,040.18
V.	Net profit (Net loss marked
	with “-”)	53	36,910,427.60	58,596,467.92	80,424,658.56
	(I) Items classified according to
	ownership:	54	–	–	–
	Net profit attributable to the
	owners of parent company	55	36,910,427.60	58,596,467.92	80,424,658.56
	Minority interests	56	–	–	–
	(II) Items classified by
	continuing operations:	57	–	–	–
	Net profit from continuing
	operation	58	36,910,427.60	58,596,467.92	80,424,658.56
	Net profit from discontinued
	operation	59	–	–	–

– 24 –

Unit of amount: RMB

				Amount for	Amount for	Amount for
Items			Line	this month	this year	last year
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 re-
		measurement 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	–	–	–

– 25 –

Unit of amount: RMB

					Amount for	Amount for	Amount for
Items				Line	this month	this year	last year
	(II) Other 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	–	–	–

– 26 –

Unit of amount: RMB

			Amount for	Amount for	Amount for
Items		Line	this month	this year	last year
	☆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	–	–	–
VII.	Total comprehensive income	79	36,910,427.60	58,596,467.92	80,424,658.56
	Total comprehensive income
	attributable to the owners of
	parent company	80	36,910,427.60	58,596,467.92	80,424,658.56
	*Total comprehensive income
	attributable to minority
	shareholders	81	–	–	–
**VIII. **	Earnings per share:	82	–	–	–
	Basic earnings per share	83	–	–	–
	Diluted earnings per share	84	–	–	–

– 27 –

CASH FLOWS STATEMENT March 2019

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	806,284,751.16	541,855,901.65
	△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	4,555,451.13	8,818,263.49
	Cash from other operating activities	14	785,772,036.57	400,279,583.67
Sub-total of cash inflows from operating activities		15	1,596,612,238.86	950,953,748.81

– 28 –

Unit of amount: RMB

Items Line Cash paid for purchase of goods and engagement of labour services 16 △Net cash 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 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	Amount for last period 647,229,253.27 3,972,089.76 – – – – 47,807,222.94 100,498,405.37 845,853,589.32 1,645,360,560.66 -48,748,321.80 – – – – – – – 224,218,548.18 14,606,630.56 – – – 238,825,178.74 -238,825,178.74	Amount for this period 764,141,906.10 – – – – – 71,602,002.81 125,029,805.61 383,697,832.56 1,344,471,547.08 -393,517,798.27 – – – – – – – 129,519,394.44 – – – – 129,519,394.44 -129,519,394.44

– 29 –

Unit of amount: RMB

Items Line 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: Dividend 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 IV. Effect of fluctuations in exchange rate on cash and cash equivalents 54 V. Net increase in cash and cash equivalents 55 Add: Balance of cash and cash equivalents at the beginning of the period 56 VI. Balance of cash and cash equivalent at the end of the period 57	Amount for last period – – – 457,700,000.00 – – 457,700,000.00 287,199,545.00 23,805,077.83 – – 311,004,622.83 146,695,377.17 – -140,878,123.37 1,172,154,711.91 1,031,276,588.54	Amount for this period – – – 446,675,477.50 – – 446,675,477.50 529,465,698.19 43,280,611.60 – – 572,746,309.79 -126,070,832.29 -154,814.20 -649,262,839.20 1,340,987,660.39 691,724,821.19

– 30 –