Rego Interactive Co., Ltd — Interim / Quarterly Report 2015

Oct 29, 2015

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

(Stock code: 1065)

Third Quarterly Report 2015

1. Important

• 1.1 The board (the “ Board ”) of directors (the “ Directors ”) and the supervisory committee of Tianjin Capital Environmental Protection Group Company Limited (the “ Company ”) and all of its Directors, supervisors and senior management warrant that there are no false information, misleading statements or material omissions in this report, and accept joint and several responsibility for the truthfulness, accuracy and completeness of the contents contained in this report.

• 1.2 Mr. Liu Yujun, the Company’s chairman, Ms. Cao Shuo, the officer in charge of the accounting function, and Mr. Liu Tao, the officer in charge of the accounting department (the chief accountant) have warranted the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.

• 1.3 The financial statements contained in the third quarterly report of the Company have not been audited.

— 1 —

2. Major Financial Data and Changes in Shareholders of the Company

2.1 Major Financial Data

Unit: 0’000 Currency: RMB

			Comparison
			between the end of
			this reporting
			period and the end
	As at the end of		of the previous year
	this reporting	As at the end of	Increase
	period	the previous year	/decrease (%)
Total assets	1,013,482.8	1,085,948.2	-6.67
Net assets attributable to the
shareholders of the Company	439,739.0	417,048.4	5.44
		From the beginning
		of the previous year
	From the	to the end of the
	beginning of the	corresponding	Compared with the
	year to the end of	reporting period of	same period of the
	the reporting	the previous year	previous year
	period (January	(January to	Increase /decrease
	to September)	September)	(%)
Net cash flows from operating
activities	214,923.5	59,469.1	261.40
Operating income	149,035.9	133,050.2	12.01
Net profits attributable to the
shareholders of the Company	32,681.2	25,442.4	28.45
Net profits attributable to the
shareholders of the Company
after deduction of extraordinary
items	32,476.0	25,327.9	28.22
Weighted average return ratio on	7.63	6.29	Increased by 1.34
net assets (%)			percentage points
Basic earnings per share
(Yuan/share)	0.23	0.18	27.78
Diluted earnings per share
(Yuan/share)	0.23	0.18	27.78

— 2 —

Extraordinary items and amounts

Unit: 0’000 Currency: RMB

		Amounts for the
		period from the
		beginning of the
	Amounts for the	year to the end
	current period	of the reporting
	(July to	period (January
Items	September)	to September)
Gain and loss from disposal of non-current assets	0.7	1.8
Government grants included in profit or loss for the current
period other than those closely related to the normal
operation of the Company, in compliance with national
policies and regulations, as well as the government grants
entitled continuously in accordance with certain standard
quota or quantity basis	284.6	374.5
Other non-operating income and expenditure except for those
mentioned above	-158.2	-47
Impact on income tax	-31.8	-82.3
Impact on minority interests (after tax)	-37.1	-41.8
Total	58.2	205.2

— 3 —

• 2.2 Total number of shareholders and the shareholdings of the top ten shareholders and the top ten shareholders of circulating shares (or shareholders of non-restricted shares) as at the end of the reporting period

	Total number of shareholders	Total number of shareholders	Total number of shareholders									**86,468, of **	**which 70 were shareholders **	**which 70 were shareholders **	of H shares	of H shares
				**Shareholdings **			**of the top **		**ten **	shareholders
				Number of
				shares held								Number of
				as at the end								restricted	**Pledged **	or frozen
				of the period			Percentage					shares held	Status of	Number	Nature of
	Name of shareholder			(shares)				(%)				(shares)	shares	(shares)	shareholder
	Tianjin Municipal Investment Company														State-owned
	Limited (“TMICL”)			715,565,186			50.14					0	Nil	—	legal person
	HKSCC Nominees Limited			337,924,900			23.68					0	Unknown	—	Unknown
	China Securities Finance Corporation
	Limited			38,704,569				2.71				0	Unknown	—	Unknown
	Central Huijin Investment Ltd.			14,169,800				0.99				0	Unknown	—	Unknown
	Chen	Hexiang		4,818,656				0.34				0	Unknown	—	Unknown
	Daton Securities Co., Ltd.			4,523,374				0.32				0	Unknown	—	Unknown
	Hunan Fuxing Investment Development
	Co., Ltd.			2,383,714				0.17				0	Unknown	—	Unknown
	Lin Qi			2,222,844				0.16				0	Unknown	—	Unknown
	Agricultural Bank of China
	Limited-SWS MU CSI Environmental
	Protection Industry		Index Classified
	Securities Investment Fund			1,983,588				0.14				0	Unknown	—	Unknown
	Agricultural Bank of China
	Limited-CSI500 Index Open-ended
	Fund			1,976,983				0.14				0	Unknown	—	Unknown

— 4 —

	**Shareholdings **	**Shareholdings **	**of the top **	**ten **	shareholders of non-restricted shares	shareholders of non-restricted shares	shareholders of non-restricted shares	shareholders of non-restricted shares	shareholders of non-restricted shares
			**Number **	of non-restricted
			circulating shares held						Type and number of shares
	Name of shareholder						(shares)		Type	Number (shares)
	TMICL				715,565,186				Ordinary RMB Shares	715,565,186
	HKSCC Nominees Limited				337,924,900				H Shares	337,924,900
	China Securities Finance Corporation
	Limited				38,704,569				Ordinary RMB Shares	38,704,569
	Central Huijin Investment Ltd.				14,169,800				Ordinary RMB Shares	14,169,800
	Chen Hexiang					4,818,656			Ordinary RMB Shares	5,706,851
	Daton Securities Co., Ltd.					4,523,374			Ordinary RMB Shares	4,523,374
	Hunan Fuxing Investment Development
	Co., Ltd.					2,383,714			Ordinary RMB Shares	4,006,227
	Lin Qi					2,222,844			Ordinary RMB Shares	3,703,302
	Agricultural Bank of China
	Limited-SWS MU CSI Environmental
	Protection Industry Index Classified
	Securities Investment Fund					1,983,588			Ordinary RMB Shares	3,497,739
	Agricultural Bank of China
	Limited-CSI500 Index Open-ended
	Fund					1,976,983			Ordinary RMB Shares	3,352,470
			It is not	certain whether there is any connected relationship among the top 10
			shareholders.		It	is		not certain whether there is any connected relationship
			between	the	top 10 shareholders of non-restricted shares and the top 10
			shareholders.
	Notes on the connected relationship or parties acting in concert among the above shareholders		Notes:	(1)	According to the register of members as provided by HKSCC Nominees Limited, those H shares held by it were held on behalf of various clients. There was no client who owned 5% or
					more interest in the total share capital of					the Company.
				(2)	The top ten shareholders are not strategic investors of the
					Company.

— 5 —

3. Major Events

3.1 Description of and reasons for substantial changes in principal financial statement items and financial indicators of the Company

As at 30 September 2015, the Company and its subsidiaries (the “ Group ”) had total assets in the amount of RMB10,134.83 million, representing a decrease of 7% or RMB724.65 million as compared to the beginning of the year. Total liabilities were RMB5,556.58 million, representing a decrease of 15% or RMB964.92 million as compared to the beginning of the year. Equity interest attributable to the shareholders of the Company was RMB4,397.39 million, representing an increase of 5% or RMB226.91 million as compared to the beginning of the year. Net profit attributable to the Company for the period from January to September 2015 was RMB326.81 million, representing an increase of 28% or RMB72.39 million as compared to the same period last year. Analysis of items with more significant changes is set out below:

Unit: 0’000 Currency: RMB

					30	31	Amount of	Amount of
				September		December	increase/
		Item			2015	2014	decrease		Change Reason
		Monetary		143,041		82,009		61,032	74.42% Significant increase in closing
		assets							balances of monetary assets was
									due to the Company’s receipt of
									the sewage water treatment fees
									of RMB1.89 billion due from
									Tianjin Sewage Company in the
									years prior to 2014.
		Notes			305	—		305	N/A Increase in closing amount was
		receivables							due to the subsidiaries’ new
									notes receivables.
		Trade		128,666		256,311	-127,645		-49.80% Significant decrease in the
		receivables							closing balance of trade
									receivables was due to the
									recovery of the sewage water
									treatment fees in the amount of
									RMB1.89 billion due from
									Tianjin Sewage Company to the
									Company before 2014.
		Prepayments		16,836		10,641		6,195	58.22% Mainly representing
									prepayments for the upgrading
									and reconstruction project of
									subsidiaries’ sewage water
									treatment plants.

— 6 —

					30	31 Amount of	31 Amount of	31 Amount of
				September		December increase/
		Item			2015	2014 decrease			Change Reason
		Other			1,584	571	1,013		177.41% Mainly representing new
		receivables							advances and project deposits.
		Inventories			1,969	1,439	530		36.83% Mainly representing equipment
									purchased by subsidiaries for
									sale.
		Construction			550	413	137		33.17% Mainly representing
		in progress							expenditures of subsidiaries’
									small-scale projects.
		Short-term			—	5,000	-5,000		-100.00% The Company’s repayment of
		borrowings							short-term borrowings due.
		Taxes			5,475	2,640	2,835		107.39% Mainly the increase in corporate
		payable							income taxes as a result of
									increase in profit.
		Dividend			3,243	6,034	-2,791		-46.25% Decrease in the closing balance
		payable							was due to the payment of
									dividend for 2014 to
									shareholders.
		Long-term			66,739	156,457 -89,718			-57.34% Significant decrease in the
		borrowings							closing balance was due to the
									Company’s partial repayment of
									long-term borrowing in
									advance.

— 7 —

			January to	January to	January to	Amount of
			September		September	increase/
		Item	2015		2014	decrease	Change Reason
		Business tax	1,651		1,160	491	42.33% Mainly representing taxes paid
		and					in respect of subsidiaries’
		surcharges					income.
		Selling		248	—	248	N/A Increase in selling expenses was
		expenses					arised from the increased
							marketing efforts of Tianjin
							Kaiying Technology
							Development Company Limited
							during the year and special
							collection of personal
							expenditures of marketing staff.
		Impairment	—		690	-690	-100.00% During the same period last
		of assets					year, the management, based on
							prudent considerations, made
							provision for impairment losses
							of RMB6.9 million in respect of
							the tap water project of Anguo
							Company, pursuant to the
							interlocutory judgement made
							by the China International
							Economic and Trade Arbitration
							Commission in respect of the
							Anguo projects, namely
							“Judgement in respect of the
							termination of the relevant
							agreements for Anguo
							Company’s tap water supply and
							sewage water projects, and
							completion of transfer before
							July 2014”. There were no
							impairment losses of assets in
							the current period.
		Investment	-343		49	-392	-800.00% The decrease in the current
		income					period as compared to the same
							period last year was mainly
							because Tianjin International
							Machinery Company Limited,
							an associated company,
							recorded losses in the current
							period.

— 8 —

				January to	**January **	to	Amount of
				September	September		increase/
		Item		2015	2014		decrease	Change Reason
		Non-operating		118	254		-136	-53.54% The decrease in the current
		expenses						period as compared to the same
								period last year was mainly due
								to the significant losses from
								the retirement of fixed assets of
								the Group in the same period
								last year.
		Income tax		11,882	8,772		3,110	35.45% The increase in the current
								period as compared to the same
								period last year was mainly due
								to the increase in profit in the
								current period as compared to
								the same period last year.
		Minority		1,236	722		514	71.19% The increase in the current
		interests						period as compared to the same
								period last year was mainly due
								to the increase in net profit of
								non wholly-owned subsidiaries
								in the current period.
		Net	cash	214,923	59,469		155,454	261.40% Mainly due to the Company’s
		flows from						receipt of the sewage water
		operating						treatment service fees of
		activities						RMB1.89 billion due from
								Tianjin Sewage Company in the
								years prior to 2014, resulting in
								the increase in net cash inflow.
		Net	cash	-34,875	-16,950		-17,925	-105.75% Mainly due to the receipt of the
		flows from						land compensation for the
		investing						relocation and construction
		activities						project in the amount of
								RMB300 million during the
								same period last year, which
								was nil in the current period.

— 9 —

				January to	January to	**January **	to	Amount of	Amount of
					September	September		increase/
		Item			2015	2014		decrease		Change Reason
		Net cash			-119,927	-57,487		-62,440		-108.62% The decrease in the current
			flows from							period as compared to the same
			financing							period last year was mainly due
			activities							to the increase in the amount of
										repayment in the current period
										as compared to the same period
										last year and the significant
										decrease in the amount of
										borrowings in the current period
										as compared to the same period
										last year.
		Net increase			60,122	-14,968		75,089		501.67% Mainly due to the Company’s
			in cash							receipt of the sewage water
			and cash							treatment service fees of
			equivalents							RMB1.89 billion due from
										Tianjin Sewage Company in the
										years prior to 2014, resulting in
										significant increase in the net
										increase in cash and cash
										equivalents.

• 3.2 Progress of major event and its effects as well as the analytical explanation of solutions

□ Applicable � Not applicable

• 3.3 Implementation of commitments made by the Company and shareholders holding more than 5% of share capital

□ Applicable � Not applicable

— 10 —

• 3.4 Warning of the prediction that the accumulated net profits from the beginning of the year to the end of the next reporting period may record a loss or substantial changes may have occurred as compared with the same period of the previous year and the reasons

□ Applicable � Not applicable

By order of the Board Liu Yujun Chairman

Tianjin, the PRC 29 October 2015

As at the date of this announcement, the Board of Directors comprises four executive Directors: Mr. Liu Yujun, Mr. Lin Wenbo, Ms. Fu Yana and Ms. Cao Shuo; two non-executive Directors: Mr. An Pindong and Ms. Chen Yinxing; and three independent non-executive Directors: Ms. Lee Kit Ying, Karen, Mr. Gao Zongze and Mr. Guan Yimin.

— 11 —

4. Appendices

Consolidated Balance Sheet

As at 30 September 2015

	Unit: ’000 Currency: RMB	Unit: ’000 Currency: RMB
	Type of audit: Unaudited
	Balance	Balance
	as at the	as at the
	end of	beginning
Items	the period	of the year
CURRENT ASSETS:
Monetary assets	1,430,407	820,092
Notes receivable	3,050	0
Trade receivables	1,286,659	2,563,114
Prepayments	168,361	106,412
Other receivables	15,837	5,707
Inventories	19,689	14,392
Other current assets	56,851	62,250
Total current assets	2,980,854	3,571,967
NON-CURRENT ASSETS:
Available-for-sale financial assets	2,000	2,000
Long-term receivables	321,133	326,147
Long-term equity investments	27,920	31,347
Investment properties	102,181	104,936
Fixed assets	460,440	488,528
Construction in progress	5,503	4,133
Intangible assets	6,228,062	6,321,963
Other non-current assets	6,735	8,461
Total non-current assets	7,153,974	7,287,515
TOTAL ASSETS	10,134,828	10,859,482

— 12 —

Items CURRENT LIABILITIES: Short-term borrowings Trade payables Advances Wages payable Taxes payable Dividend payable Other payables Non-current liabilities due within one year Other current liabilities Total current liabilities NON-CURRENT LIABILITIES: Long-term borrowings Debentures payables Long-term payables Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities TOTAL LIABILITIES OWNERS’ EQUITY: Share capital Capital reserves Surplus reserves Undistributed profits Total equity attributable to the owners of the Company Minority interests Total owners’ equity TOTAL LIABILITIES AND OWNERS’ EQUITY	Balance as at the end of the period Balance as at the beginning of the year 0 50,000 67,137 54,319 858,678 776,190 13,226 13,650 54,748 26,400 32,426 60,337 563,004 666,433 291,395 304,221 3,439 4,251 1,884,053 1,955,801 667,386 1,564,566 1,392,116 1,388,975 253,475 262,454 1,205,044 1,209,201 102,146 86,778 52,364 53,727 3,672,531 4,565,701 5,556,584 6,521,502 1,427,228 1,427,228 382,311 382,311 395,063 395,063 2,192,788 1,965,882 4,397,390 4,170,484 180,854 167,496 4,578,244 4,337,980 10,134,828 10,859,482	Balance as at the end of the period Balance as at the beginning of the year 0 50,000 67,137 54,319 858,678 776,190 13,226 13,650 54,748 26,400 32,426 60,337 563,004 666,433 291,395 304,221 3,439 4,251 1,884,053 1,955,801 667,386 1,564,566 1,392,116 1,388,975 253,475 262,454 1,205,044 1,209,201 102,146 86,778 52,364 53,727 3,672,531 4,565,701 5,556,584 6,521,502 1,427,228 1,427,228 382,311 382,311 395,063 395,063 2,192,788 1,965,882 4,397,390 4,170,484 180,854 167,496 4,578,244 4,337,980 10,134,828 10,859,482
		1,564,566 1,388,975 262,454 1,209,201 86,778 53,727 4,565,701
		6,521,502
		1,427,228 382,311 395,063 1,965,882 4,170,484
		167,496 4,337,980
		10,859,482

— 13 —

Balance Sheet of the Company

As at 30 September 2015

	Unit: ’000 Currency: RMB	Unit: ’000 Currency: RMB
	Type of audit: Unaudited
	Balance	Balance
	as at the	as at the
	end of	beginning
Items	the period	of the year
CURRENT ASSETS:
Monetary assets	731,531	295,231
Trade receivables	1,045,529	2,371,956
Prepayments	507	259
Dividend receivable	7,032	0
Other receivables	129,235	95,792
Inventories	4,077	4,336
Other current assets	142,990	77,380
Total current assets	2,060,901	2,844,954
NON-CURRENT ASSETS:
Available-for-sale financial assets	2,000	2,000
Long-term receivables	321,133	326,147
Long-term equity investments	1,443,236	1,353,236
Investment properties	79,778	82,154
Fixed assets	145,373	157,880
Construction in progress	197	197
Intangible assets	3,554,308	3,648,936
Other non-current assets	170,548	134,468
Total non-current assets	5,716,573	5,705,018
TOTAL ASSETS	7,777,474	8,549,972

— 14 —

	Balance	Balance
	as at the	as at the
	end of	beginning
Items	the period	of the year
CURRENT LIABILITIES:
Short-term borrowings	0	50,000
Trade payables	26,848	21,540
Advances	24,954	6,841
Wages payable	8,900	7,930
Taxes payable	30,776	14,987
Dividend payable	32,426	60,337
Other payables	937,613	1,029,776
Non-current liabilities due within one year	24,245	91,391
Total current liabilities	1,085,762	1,282,802
NON-CURRENT LIABILITIES:
Long-term borrowings	38,500	725,850
Debentures payables	1,392,116	1,388,975
Long-term payables	253,475	262,454
Deferred income	959,340	967,167
Deferred income tax liabilities	43,642	36,584
Total non-current liabilities	2,687,073	3,381,030
TOTAL LIABILITIES	3,772,835	4,663,832
OWNERS’ EQUITY:
Share capital	1,427,228	1,427,228
Capital reserves	380,788	380,788
Surplus reserves	395,063	395,063
Undistributed profits	1,801,560	1,683,061
Total owners’ equity	4,004,639	3,886,140
TOTAL LIABILITIES AND OWNERS’ EQUITY	7,777,474	8,549,972

— 15 —

Consolidated Income Statement

January to September 2015

Unit: ’000 Currency: RMB Type of audit: Unaudited

					Amount for
				Amount for	the period
				the period	from the
				from the	beginning of
				beginning of	the previous
				the year to	year to the
		Amount for	Amount for	the end of	end of the
		the current	the previous	the reporting	reporting
		period	period	period	period
		(July to	(July to	(January to	(January to
Items		September)	September)	September)	September)
1.	Total operating income	532,380	468,733	1,490,359	1,330,502
	Including: Operating income	532,380	468,733	1,490,359	1,330,502
2.	Total cost for operations	332,974	318,841	1,032,239	983,005
	Including: Cost for operations	264,454	241,014	801,297	728,259
	Business tax and
	surcharges	7,938	3,547	16,508	11,604
	Selling expenses	701	0	2,480	0
	Administrative
	expenses	22,959	22,400	77,413	78,846
	Financial expenses	36,922	51,880	134,541	157,396
	Impairment loss of
	assets	0	0	0	6,900
	Investment income
	(losses are stated
	by “-”)	-440	-51	-3,427	489
	Including: Investment income
	from associate
	companies and joint
	venture companies	-440	-51	-3,427	489

— 16 —

					Amount for
				Amount for	the period
				the period	from the
				from the	beginning of
				beginning of	the previous
				the year to	year to the
		Amount for	Amount for	the end of	end of the
		the current	the previous	the reporting	reporting
		period	period	period	period
		(July to	(July to	(January to	(January to
Items		September)	September)	September)	September)
3.	Operation profit (losses are
	stated by “-”)	198,966	149,841	454,693	347,986
	Add: Non-operating income	2,367	1,069	4,477	3,916
	Including: Gains on disposal
	of non-current
	assets	7	0	19	15
	Less: Non-operating expenses	1,096	1,849	1,184	2,539
	Including: Losses on disposal
	of non-current
	assets	0	1,782	1	2,397
4.	Total profit (total losses are
	stated by “-”)	200,237	149,061	457,986	349,363
	Less: Income tax expenses	47,630	34,751	118,817	87,723
5.	Net profit (net losses are
	stated by “-”)	152,607	114,310	339,169	261,640
	Net profit attributable to the
	owners of the Company	145,377	110,466	326,812	254,424
	Minority interests	7,230	3,844	12,357	7,216
6.	Other comprehensive income,
	net of tax
	Other comprehensive income
	attributable to the owners of
	the Company, net of tax	—	—	—	—

— 17 —

						Amount for
					Amount for	the period
					the period	from the
					from the	beginning of
					beginning of	the previous
					the year to	year to the
			Amount for	Amount for	the end of	end of the
			the current	the previous	the reporting	reporting
			period	period	period	period
			(July to	(July to	(January to	(January to
Items			September)	September)	September)	September)
7.	Total	comprehensive income	152,607	114,310	339,169	261,640
	Total	comprehensive income
	attributable to the owners of
	the	Company	145,377	110,466	326,812	254,424
	Total	comprehensive income
	attributable to minority
	shareholders		7,230	3,844	12,357	7,216
8.	Earnings per share:
	(1)	Basic earnings per share
		(Yuan per share)	0.10	0.08	0.23	0.18
	(2)	Diluted earnings per share
		(Yuan per share)	0.10	0.08	0.23	0.18

For the business combination under common control effected in the current period, the net profit recognized by the merged party before the combination was RMB0, and the net profit recognized by the merged party in the previous period was RMB0.

— 18 —

Income Statement of the Company January to September 2015

Unit: ’000 Currency: RMB Type of audit: Unaudited

					Amount for
				Amount for	the period
				the period	from the
				from the	beginning of
				beginning of	the previous
				the year to	year to the
		Amount for	Amount for	the end of	end of the
		the current	the previous	the reporting	reporting
		period	period	period	period
		(July to	(July to	(January to	(January to
Items		September)	September)	September)	September)
1.	Operating income	272,833	254,511	790,075	718,665
	Less: Cost for operations	115,800	103,614	365,538	321,537
	Business tax and
	surcharges	3,509	2,046	7,790	6,329
	Administrative expenses	14,305	12,848	45,410	44,950
	Financial expenses	19,979	34,181	78,856	98,825
	Impairment loss of assets	0	0	0	6,900
	Investment income (losses
	are stated by “-”)	7,033	2,000	7,033	2,000
2.	Operation profit (losses are
	stated by “-”)	126,273	103,822	299,514	242,124
	Add: Non-operating income	311	504	926	2,658
	Less: Non-operating expenses	223	1,370	223	1,370
	Including: Losses on disposal
	of non-current assets	0	1,370	0	1,370
3.	Total profit (total losses
	are stated by “-”)	126,361	102,956	300,217	243,412
	Less: Income tax expenses	30,186	25,242	81,812	62,078
4.	Net profit (net losses are
	stated by “-”)	96,175	77,714	218,405	181,334
5.	Other comprehensive income,
	net of tax	—	—	—	—
6.	Total comprehensive income	96,175	77,714	218,405	181,334
7.	Earnings per share :
	(1) Basic earnings per share
	(Yuan per share)	0.07	0.05	0.15	0.13
	(2) Diluted earnings per share
	(Yuan per share)	0.07	0.05	0.15	0.13

— 19 —

Consolidated Cash Flow Statement

January to September 2015

		Unit: ’000 Currency: RMB	Unit: ’000 Currency: RMB
		Type of audit: Unaudited
			Amount for the
		Amount for the	period from the
		period from the	beginning of the
		beginning of the	previous year to
		year to the end of	the end of the
		the reporting	reporting period
		period (January	(January to
Items		to September)	September)
1.	Cash flows from operating activities:
	Cash received from sales of goods and
	rendering of services	2,861,795	1,063,225
	Taxes and levies rebate received	2,106	499
	Cash received relating to other
	operating activities	125,336	214,045
	Sub-total of cash inflow from
	operating activities	2,989,237	1,277,769
	Cash paid for goods and services	467,939	397,615
	Cash paid to and on behalf of
	employees	164,558	154,028
	Payments of taxes and levies	132,019	96,091
	Cash payments relating to other
	operating activities	75,486	35,344
	Sub-total of cash outflow from
	operating activities	840,002	683,078
	Net cash flows from operating
	activities	2,149,235	594,691

— 20 —

				Amount for the
			Amount for the	period from the
			period from the	beginning of the
			beginning of the	previous year to
			year to the end of	the end of the
			the reporting	reporting period
			period (January	(January to
Items			to September)	September)
2.	Cash flows from investing activities:
	Cash received from recovery of
		investments	219	676
	Net cash received from disposal of
		fixed assets, intangible assets and
		other long-term assets	26	1,223
	Cash received relating to other
		investing activities	—	300,000
	Sub-total of cash inflow from
		investing activities	245	301,899
	Cash paid to acquire and construct
		fixed assets, intangible assets and
		other long-term assets	333,982	471,399
	Cash payments relating to other
		investing activities	15,010	0
	Sub-total of cash outflow from
		investing activities	348,992	471,399
	Net cash flows from investing
		activities	-348,747	-169,500

— 21 —

			Amount for the
		Amount for the	period from the
		period from the	beginning of the
		beginning of the	previous year to
		year to the end of	the end of the
		the reporting	reporting period
		period (January	(January to
Items		to September)	September)
3.	Cash flows from financing activities:
	Cash received from investments	1,000	0
	Including: Cash received by
	subsidiaries from minority
	shareholders’ investments	1,000	0
	Cash received from borrowings	125,000	414,640
	Sub-total of cash inflow from
	financing activities	126,000	414,640
	Cash paid for repayments of debts	1,086,724	767,992
	Cash paid for distribution of dividends
	and profits or for interest expenses	238,549	221,518
	Sub-total of cash outflow from
	financing activities	1,325,273	989,510
	Net cash flows from financing
	activities	-1,199,273	-574,870
4.	Effect of foreign exchange rate
	changes on cash and cash
	equivalents:	—	—
5.	Net increase in cash and cash
	equivalents:	601,215	-149,679
	Add: Balance of cash and cash
	equivalents at the beginning of
	period	814,892	994,982
6.	Balance of cash and cash equivalents
	at the end of period:	1,416,107	845,303

— 22 —

Cash Flow Statement of the Company

January to September 2015

		Unit: ’000 Currency: RMB	Unit: ’000 Currency: RMB
		Type of audit: Unaudited
			Amount for the
		Amount for the	period from the
		period from the	beginning of the
		beginning of the	previous year to
		year to the end of	the end of the
		the reporting	reporting period
		period (January	(January to
Items		to September)	September)
1.	Cash flows from operating activities:
	Cash received from sales of goods and
	rendering of services	2,146,457	426,644
	Cash received relating to other
	operating activities	88,706	116,227
	Sub-total of cash inflow from
	operating activities	2,235,163	542,871
	Cash paid for goods and services	198,353	149,436
	Cash paid to and on behalf of
	employees	72,073	72,200
	Payments of taxes and levies	74,492	63,400
	Cash payments relating to other
	operating activities	53,471	10,565
	Sub-total of cash outflow from
	operating activities	398,389	295,601
	Net cash flows from operating
	activities	1,836,774	247,270

— 23 —

			Amount for the
		Amount for the	period from the
		period from the	beginning of the
		beginning of the	previous year to
		year to the end of	the end of the
		the reporting	reporting period
		period (January	(January to
Items		to September)	September)
2.	Cash flows from investing activities:
	Cash received from recovery of
	investments	0	676
	Cash received from returns on
	investments	0	11,800
	Net cash received from disposal of
	fixed assets, intangible assets and
	other long-term assets	6	0
	Cash received from subsidiaries	104,553	283,764
	Cash received relating to other
	investing activities	0	300,000
	Sub-total of cash inflow from
	investing activities	104,559	596,240
	Cash paid to acquire and construct
	fixed assets, intangible assets and
	other long-term assets	157,211	308,518
	Cash paid for investments	90,000	19,600
	Payments to subsidiaries	253,087	111,713
	Cash payments relating to other
	investing activities	5,910	0
	Sub-total of cash outflow from
	investing activities	506,208	439,831
	Net cash flows from investing
	activities	-401,649	156,409

— 24 —

			Amount for the
		Amount for the	period from the
		period from the	beginning of the
		beginning of the	previous year to
		year to the end of	the end of the
		the reporting	reporting period
		period (January	(January to
Items		to September)	September)
3.	Cash flows from financing activities:
	Cash received from investments	100,000	386,000
	Sub-total of cash inflow from
	financing activities	100,000	386,000
	Cash paid for repayments of debts	904,850	590,000
	Cash paid for distribution of dividends
	and profits or for interest expenses	193,975	170,557
	Sub-total of cash outflow from
	financing activities	1,098,825	760,557
	Net cash flows from financing
	activities	-998,825	-374,557
4.	Effect of foreign exchange rate
	changes on cash and cash
	equivalents:	—	—
5.	Net increase in cash and cash
	equivalents:	436,300	29,122
	Add: Balance of cash and cash
	equivalents at the beginning of
	period	292,731	342,090
6.	Balance of cash and cash equivalents
	at the end of period:	729,031	371,212

— 25 —