Rego Interactive Co., Ltd — Interim / Quarterly Report 2018

Oct 24, 2018

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 2018

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 quarterly report, and accept joint and several responsibilities for the truthfulness, accuracy and completeness of the contents contained in this quarterly report.

• 1.2 Mr. Liu Yujun, the chairman of the Company, Ms. Peng Yilin, 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 third quarterly report of the Company has 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	Comparison between
									the end of this
								reporting period and
									the end of the
									previous year
				**As at the end **	of this	As at the end of the		Increase / decrease
				**reporting **	period		previous year		(%)
		Total assets		1,410,836.0			1,245,289.0		13.29
		Net assets attributable
		to the shareholders
		of the Company		571,909.6			511,704.0		11.77
						From the beginning
						of the previous year
				From the beginning		to the end of the
				of the year to the end			corresponding
				of the reporting		reporting period of		Compared with the
					period	the previous year		same period of the
				(January to			(January to		previous year
				September)			September)	Increase/decrease (%)
		Net cash flows from
		operating activities		62,561.7			41,505.0		50.73
		Operating income		173,048.8			154,981.6		11.66
		Net profits attributable
		to the shareholders
		of the Company		41,715.3			41,009.5		1.72
		Net profits attributable
		to the shareholders
		of the Company
		after deduction of
		extraordinary	items	39,223.1			39,614.1		-0.99
		Weighted average
		return ratio on net						decreased by 0.70
		assets (%)			7.70		8.40	percentage point
		Basic earnings per
		share (RMB/share)			0.29		0.29		0
		Diluted earnings per
		share (RMB/share)			0.29		0.29		0

— 2 —

Extraordinary items and amounts

Unit: 0’000 Currency: RMB

							Amounts for the
						period from the beginning
				Amounts for the		of the year to the end
				current period		of the reporting period
	Items			(July to September)		(January to September)
	Gain	and loss from disposal of
	non-current assets			-1.2			-13.0
	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			99.5			3,185.3
	Other non-operating income and
	expenditure except for those
	mentioned above			218.3			318.5
	Impact on minority interests (after			tax) -70.9			-125.9
	Impact on income tax			-79.1			-872.7
	Total			166.6			2,492.2

— 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 circulating shares) as at the end of the reporting period

													98,521,	98,521,	of which 65 were	of which 65 were	of which 65 were
		Total number of shareholders											shareholders of H shares
					**Shareholdings **			of the top ten shareholders
					Number of
					**shares **	held
					at the end							**Pledged **	or frozen
					of the		Percentage		**Number **	of	Status of		Number
					reporting			of	restricted			shares	(shares)
					period		shareholding shares held									Nature of
		Name of shareholder (Full name)			(shares)			(%)	(shares)							shareholder
		Tianjin Municipal Investment			715,565,186			50.14		0		None			—	State-owned
		Company Limited (“TMICL”)														legal	person
		HKSCC Nominees Limited			337,854,900			23.67		0	Unknown				—	Unknown
		Central Huijin Asset Management			14,169,800			0.99		0		None			—	State-owned
		Ltd.														legal	person
		Agricultural Bank of China			4,100,408			0.29		0		None			—	Unknown
		Limited-CSI500 Index
		Open-ended Fund (中證500交易
		型開放式指數證券投資基金)
		Zhejiang Jinxin Construction			3,330,000			0.23		0		None			—	Unknown
		Engineering Co., Ltd.
		Wu Zuojia			2,241,219			0.16		0		None			—	Unknown
		Yifangda Fund—ICBC—Foreign			1,650,200			0.12		0		None			—	Unknown
		Trade Trust—Foreign Trade
		Trust•Stable Wealth FOF Single
		Fund Trust (易方達基金—工商
		銀行—外貿信託—外貿信託•穩
		富FOF單一資金信託)
		Shenyang Railway Coal Group Co.,			1,500,000			0.11		0		None			—	State-owned
		Ltd.														legal	person
		Yu	Ronglin		1,470,000			0.10		0		None			—	Unknown
		Bank of China Limited—Guangfa			1,366,617			0.10		0		None			—	Unknown
		China Securities Environmental
		Protection Industry Index
		Open-ended Fund (廣發中證環保
		產業交易型開放式指數證券投資
		基金)

— 4 —

		Shareholdings of the top ten shareholders of non-restricted circulating shares	Shareholdings of the top ten shareholders of non-restricted circulating shares	Shareholdings of the top ten shareholders of non-restricted circulating shares	Shareholdings of the top ten shareholders of non-restricted circulating shares	Shareholdings of the top ten shareholders of non-restricted circulating shares	Shareholdings of the top ten shareholders of non-restricted circulating 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					337,854,900	H Shares		337,854,900
	Central Huijin Asset Management					14,169,800	Ordinary RMB Shares		14,169,800
	Ltd.
	Agricultural Bank of China					4,100,408	Ordinary RMB Shares		4,100,408
	Limited-CSI500 Index
	Open-ended Fund (中證500交易
	型開放式指數證券投資基金)
	Zhejiang Jinxin Construction					3,330,000	Ordinary RMB Shares		3,330,000
	Engineering Co., Ltd.
	Wu Zuojia					2,241,219	Ordinary RMB Shares		2,241,219
	Yifangda Fund—ICBC—Foreign					1,650,200	Ordinary RMB Shares		1,650,200
	Trade Trust—Foreign Trade
	Trust•Stable Wealth FOF Single
	Fund Trust (易方達基金—工商
	銀行—外貿信託—外貿信託•穩
	富FOF單一資金信託)
	Shenyang	Railway Coal Group				1,500,000	Ordinary RMB Shares		1,500,000
	Co., Ltd.
	Yu Ronglin					1,470,000	Ordinary RMB Shares		1,470,000
	Bank of China Limited—Guangfa					1,366,617	Ordinary RMB Shares		1,366,617
	China Securities Environmental
	Protection Industry Index
	Open-ended Fund (廣發中證環
	保產業交易型開放式指數證券投
	資基金)
			It is	not certain whether there is any connected relationship				among	the	top ten
			shareholders.
			It is not certain whether there is any connected relationship between						the	top ten
	**Notes on **	the connected	shareholders of non-restricted circulating shares and the top ten					shareholders.
	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) None of the top ten shareholders are 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 2018, the Company and its subsidiaries (the “ Group ”) had total assets in the amount of RMB14,108.36 million, representing an increase of RMB1,655.47 million or 13.29% as compared to the end of last year. Total liabilities were RMB7,687.38 million, representing an increase of RMB648.27 million or 9.21% as compared to the end of last year. Equity interest attributable to the shareholders of the Company was RMB5,719.10 million, representing an increase of RMB602.06 million or 11.77% as compared to the beginning of the year. The realised net profit attributable to the Company for the period from January to September of 2018 was RMB417.15 million, representing an increase of RMB7.05 million or 1.72% 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	30		31	Amount of	Amount of
				September		December		increase/
		Items		2018			2017	decrease		Change (%)		Explanation of change
		Prepayments		4,795.6			12,477.0	-7,681.4			-61.56	Mainly due to transfer of the
												amount for construction of
												recycled water pipeline
												network in prepayment to
												undistributed profit according
												to “Accounting Standards for
												Business Enterprises No. 14
												-Revenue” promulgated by
												the Ministry of Finance of the
												PRC
		Other receivables		4,256.5			9,370.8	-5,114.3			-54.58	Mainly due to the recovery of
												part of the project tender
												deposit during this period
		Other current assets		15,385.5			8,544.9	6,840.6			80.05	Mainly due to the increase in
												value-added tax to be credited
												arising from acquisition of
												assets by the Company
		Available-for-sale			0		200.0	-200.0			-100.00	Mainly due to transfer of the
		financial assets										accrued investment amount in
												the line item
												“available-for-sale financial
												assets” to the line item “other
												investments in equity
												instruments” according to
												“Accounting Standards for
												Business Enterprises No.
												37-Presentation of Financial
												Instruments”

— 6 —

					30	31	Amount of
					September	December	increase/
			Items		2018	2017	decrease	Change (%)		Explanation of change
			Other investments in		200.0	0	200.0		N/A	Mainly due to transfer of the
			equity instruments							accrued investment amount in
										the line item
										“available-for-sale financial
										assets” to the line item “other
										investments in equity
										instruments” according to
										“Accounting Standards for
										Business Enterprises No.
										37-Presentation of Financial
										Instruments”
			Long-term equity		19,500.0	0	19,500.0		N/A	Mainly attributable to equity
			investments							investment in the new project
										company of the PPP project
										for construction of sponge
										city in Tianjin Jiefang South
										Road District
			Construction	in progress	4,215.4	2,065.7	2,149.7		104.07	Mainly due to increased
										investment in non-franchise
										projects during this period
			Goodwill		2,965.2	0	2,965.2		N/A	Mainly due to the excess of
										payment over the fair value
										for the purchase of equity of
										Bayannur Jinshengyuan Water
										Supply and Draingage Co.,
										Ltd* (巴彥淖爾市金晟源給排
										水有限公司) (“Bayannur
										Company”)
			Other non-current assets		24,115.4	59,843.3	-35,727.9		-59.70	Mainly due to the investment
										amount divested from
										Bayannur Company
			Short-term borrowings		20,000.0	49,900.0	-29,900.0		-59.92	Mainly due to the repayment
										of matured short-term
										borrowings
			Advance payment		4,877.0	93,088.8	-88,211.8		-94.76	Mainly due to the
										reclassification of the
										prepayment in relation to the
										recycled water pipeline
										connection projects into
										contract liabilities according
										to “Accounting Standards for
										Business Enterprises No. 14
										-Revenue” promulgated by
										the Ministry of Finance of the
										PRC

— 7 —

								30	30				31 **Amount **	31 **Amount **	of	of
							September				December			increase/
		Items						2018				2017		decrease			Change (%) Explanation of change
		Contract		liabilities				48,925.1					0	48,925.1				N/A Mainly due to the
																			reclassification of the
																			prepayment in relation to the
																			recycled water pipeline
																			connection projects into
																			contract liabilities according
																			to “Accounting Standards for
																			Business Enterprises No. 14
																			-Revenue” promulgated by
																			the Ministry of Finance of the
																			PRC
		Wages payable						1,558.4				4,455.0		-2,896.6				-65.02 Mainly due to the payment of
																			year-end bonus provided for
																			2017 during the period
		Non-current liabilities due						21,635.9				87,009.2		-65,373.3				-75.13 Mainly due to the repayment
			within	one year															of medium notes due during
																			this period
		Long-term borrowings						164,511.2				58,151.7		106,359.5				182.90 Mainly due to additional
																			long-term borrowings during
																			this period
		Bonds payable						179,610.4				69,798.4		109,812.0				157.33 Mainly due to additional
																			corporate bonds during this
																			period
		Minority		interest				70,188.0				29,673.6		40,514.4				136.53 Mainly due to increase in
																			minority interest in
																			companies such as Bayannur
																			Company
							January to			**January **			to **Amount **		of
							September			September				increase/
		Items						2018				2017		decrease			Change (%) Explanation of change
		Financial costs						11,867.7				7,838.7		4,029.0				51.40 Mainly due to increase in debt
																			financing which led to
																			increase in interest expense
		Asset impairment loss							0			80.6		-80.6				-100.00 Mainly due to the transfer of
																			recovery amount of bad debt
																			provision accrued in previous
																			years during this period from
																			the line item “asset
																			impairment loss” to line item
																			“credit impairment loss”
																			according to the latest
																			Accounting Standards for
																			Business Enterprises of the
																			PRC

— 8 —

					January to	January to	Amount of
					September	September	increase/
			Items		2018	2017	decrease	Change (%)		Explanation of change
			Credit impairment loss		-292.3	0	-292.3		N/A	mainly due to the transfer of
										recovery amount of bad debt
										provision accrued in prior
										years during this period from
										the line item “asset
										impairment loss” to line item
										“credit impairment loss”
										according to the latest
										Accounting Standards for
										Business Enterprises of the
										PRC
			Investment gain		20.0	40.0	-20.0		-50.00	Mainly because the dividends
										received from Tianjin Beifang
										Rencaigang Company Limited
										(天津市北方人才港股份有限
										公司) this period was less
										than those received in the
										same period of last year
			Non-operating income		680.3	2,005.6	-1,325.3		-66.08	Mainly due to the transfer of
										government grants relating to
										daily activities from the line
										item “non-operating income”
										to the line item “other
										income” in this period
										according to the latest
										Accounting Standards for
										Business Enterprises of the
										PRC
			Net cash flows from		62,561.7	41,505.0	21,056.7		50.73	Mainly due to higher
			operating	activities						operating income than that of
										the same period last year
			Net cash flows from		-180,225.4	-59,412.1	-120,813.3		-203.35	Mainly because the
			investing activities							investment expenses of
										various construction projects
										of the Company in this period
										were higher than those in the
										same period last year
			Net cash flows from		121,386.3	31,210.6	90,175.7		288.93	Mainly because the increase
			financing	activities						in debt financing in this
										period is more than that in the
										same period last year
			Net increase	in cash and	3,722.6	13,303.5	-9,580.9		-72.02	Mainly due to the combined
			cash equivalents							effect of cash flows derived
										from operating, investing,
										financing activities

— 9 —

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

On 1 February 2018, the Company received the “Approval on the Non-public Issuance of Shares of Tianjin Capital Environmental Protection Group Company Limited (關於核准天津創業環保集團股份有限公司非公開發行股票的批覆)” (Zheng Jian Xu Ke [2018] No. 145) from the China Securities Regulatory Commission (the “ CSRC ”), pursuant to which the Company was approved to make the non-public issuance of not more than 285,445,686 new A Shares (the “ Non-public Issuance ”) and the approval shall be valid for six months from the issue date of the approval (18 January 2018).

Upon obtaining the said approval, the Company had been actively pushing ahead with the issuance; however, due to changes in the capital market environment, the Company was unable to complete the Non-public Issuance within the six-month validity period specified in the approval document of the CSRC (i.e., on or before 17 July 2018). The approval of the CSRC on the Non-public Issuance of the Company has lapsed automatically.

As the Non-public Issuance has not been completed as scheduled, to safeguard the interests of all shareholders of the Company, the Company will, in view of actual situation, guarantee the construction of the investment project with its own funds and funds raised by debt financing and other means, and it is expected that it will not have a material impact on the production and operation of the Company.

Pursuant to the relevant rules and regulations, if the Company wishes to propose an A Shares equity financing plan in the future, it shall reconvene a board meeting and a general meeting to consider the relevant issuance proposal and seek approval from the CSRC upon making disclosure in accordance with the relevant regulations.

— 10 —

• 3.3 Commitments that failed to be implemented on time during the reporting period

□ Applicable � Not applicable

• 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 Chairman Liu Yujun

Tianjin, the PRC 24 October 2018

As at the date of this announcement, the Board comprises four executive Directors: Mr. Liu Yujun, Mr. Tang Fusheng, Ms. Fu Yana and Ms. Peng Yilin; two non-executive Directors: Mr. Yu Zhongpeng and Mr. Han Wei; and three independent non-executive Directors: Mr. Gao Zongze, Mr. Guo Yongqing and Mr. Wang Xiangfei.

— 11 —

4. Appendices

Consolidated Balance Sheet

As at 30 September 2018

Unit: ’000 Currency: RMB

Items Balance of CURRENT ASSETS: Currency funds Notes receivable and trade receivables Of Which: Notes receivable Trade receivables Prepayments Other receivables Inventories Other current assets Total current assets NON-CURRENT ASSETS: Long-term receivables Long-term equity investments Available for sale financial assets Other investments in equity instruments Investment properties Fixed assets Construction in progress Intangible assets Goodwill Other non-current assets Total non-current assets Total assets	at the end the period Balance at the beginning of the year 1,946,855 1,905,678 2,096,276 1,929,400 4,969 1,900 2,091,307 1,927,500 47,956 33,540 42,565 93,708 17,983 18,112 153,855 85,449 4,305,490 4,065,887 280,347 294,956 195,000 0 0 2,000 2,000 0 84,065 86,820 360,885 383,831 42,154 20,657 8,567,613 6,906,418 29,652 0 241,154 598,433 9,802,870 8,293,115 14,108,360 12,359,002	at the end the period Balance at the beginning of the year 1,946,855 1,905,678 2,096,276 1,929,400 4,969 1,900 2,091,307 1,927,500 47,956 33,540 42,565 93,708 17,983 18,112 153,855 85,449 4,305,490 4,065,887 280,347 294,956 195,000 0 0 2,000 2,000 0 84,065 86,820 360,885 383,831 42,154 20,657 8,567,613 6,906,418 29,652 0 241,154 598,433 9,802,870 8,293,115 14,108,360 12,359,002
		294,956 0 2,000 0 86,820 383,831 20,657 6,906,418 0 598,433 8,293,115
		12,359,002

— 12 —

Items

Balance at the end Balance at the of the period beginning of the year

CURRENT LIABILITIES: Short-term borrowings Notes payable and trade payables Advances Contract liabilities Wages payable Taxes payable Other payables Including: Interests payable Dividends payable Non-current liabilities due within one year Other current liabilities Total current liabilities NON-CURRENT LIABILITIES: Long-term borrowings Debentures payables Long-term payables Expected liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities TOTAL LIABILITIES	200,000 157,971 48,770 489,251 15,584 54,856 465,855 — 1,912 216,359 6,554 1,655,200 1,645,112 1,796,104 251,672 32,930 2,140,369 125,997 40,000 6,032,184 7,687,384	499,000 138,120 591,017 0 44,550 131,772 629,121 — 1,912 870,092 7,827 2,911,499
		581,517 697,984 263,887 32,930 2,129,064 120,259 40,000 3,865,641
		6,777,140

— 13 —

Items Balance of OWNERS’ EQUITY: Paid-in capital (or share capital) Capital reserves Surplus reserves Retained earnings Total equity attributable to owners of the Company Minority shareholders interest Total owners’ (or shareholders’) equity TOTAL LIABILITIES AND OWNERS’ (OR SHAREHOLDERS’) EQUITY	at the end the period Balance at the beginning of the year 1,427,228 1,427,228 415,933 399,115 479,907 479,907 3,396,028 2,978,876 5,719,096 5,285,126 701,880 296,736 6,420,976 5,581,862 14,108,360 12,359,002	at the end the period Balance at the beginning of the year 1,427,228 1,427,228 415,933 399,115 479,907 479,907 3,396,028 2,978,876 5,719,096 5,285,126 701,880 296,736 6,420,976 5,581,862 14,108,360 12,359,002
		296,736 5,581,862
		12,359,002

— 14 —

Balance Sheet of the Company

As at 30 September 2018

Unit: ’000 Currency: RMB

Items Balance of CURRENT ASSETS: Currency funds Notes receivable and trade receivables Of which: Notes receivable Trade receivables Prepayments Other receivables Including: interests receivable Dividends receivable Inventories Other current assets Total current assets NON-CURRENT ASSETS: Long-term receivables Long-term equity investments Available for sale financial assets Other investments in equity instruments Investment properties Fixed assets Construction in progress Intangible assets Other non-current assets Total non-current assets Total assets	at the end the period Balance at the beginning of the year 906,370 784,959 1,612,614 1,661,214 — — 1,612,614 1,661,214 3,362 1,114 148,047 241,959 — — 4,000 13,880 4,086 4,116 614,910 173,452 3,289,389 2,866,814 280,348 294,956 3,285,208 2,081,302 0 2,000 2,000 0 63,176 65,552 109,273 116,730 597 0 3,580,761 3,321,141 205,316 726,085 7,526,679 6,607,766 10,816,068 9,474,580	at the end the period Balance at the beginning of the year 906,370 784,959 1,612,614 1,661,214 — — 1,612,614 1,661,214 3,362 1,114 148,047 241,959 — — 4,000 13,880 4,086 4,116 614,910 173,452 3,289,389 2,866,814 280,348 294,956 3,285,208 2,081,302 0 2,000 2,000 0 63,176 65,552 109,273 116,730 597 0 3,580,761 3,321,141 205,316 726,085 7,526,679 6,607,766 10,816,068 9,474,580
		294,956 2,081,302 2,000 0 65,552 116,730 0 3,321,141 726,085 6,607,766
		9,474,580

— 15 —

Items Balance of CURRENT LIABILITIES: Short-term borrowings Notes receivable and trade payables Advances Wages payable Taxes payable Other payables Including: Interests payable Dividends Payable Non-current liabilities due within one year Other current liabilities Total current liabilities NON-CURRENT LIABILITIES: Long-term borrowings Debentures payables Long-term payables Expected liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities TOTAL LIABILITIES OWNERS’ EQUITY: Paid in capital (or Share capital) Capital reserves Surplus reserves Retained earnings Total owners’ (or shareholders’) equity TOTAL LIABILITIES AND OWNERS’ (OR SHAREHOLDERS’) EQUITY	at the end the period Balance at the beginning of the year 200,000 499,000 41,238 42,027 26,611 5,123 11,647 26,067 2,162 7,802 591,231 700,314 — — 1,912 1,912 77,965 724,449 86,463 86,463 1,037,317 2,091,245 999,000 0 1,796,104 697,984 251,672 263,887 32,930 32,930 1,692,125 1,719,380 66,151 61,929 210,000 210,000 5,047,982 2,986,110 6,085,299 5,077,355 1,427,228 1,427,228 380,788 380,788 479,907 479,907 2,442,846 2,109,302 4,730,769 4,397,225 10,816,068 9,474,580	at the end the period Balance at the beginning of the year 200,000 499,000 41,238 42,027 26,611 5,123 11,647 26,067 2,162 7,802 591,231 700,314 — — 1,912 1,912 77,965 724,449 86,463 86,463 1,037,317 2,091,245 999,000 0 1,796,104 697,984 251,672 263,887 32,930 32,930 1,692,125 1,719,380 66,151 61,929 210,000 210,000 5,047,982 2,986,110 6,085,299 5,077,355 1,427,228 1,427,228 380,788 380,788 479,907 479,907 2,442,846 2,109,302 4,730,769 4,397,225 10,816,068 9,474,580
		0 697,984 263,887 32,930 1,719,380 61,929 210,000 2,986,110
		5,077,355
		1,427,228 380,788 479,907 2,109,302 4,397,225
		9,474,580

— 16 —

Consolidated Income Statement January to September 2018

Unit: ’000 Currency: RMB

							Amount for the
						Amount for the	period from the
						period from the	beginning of the
						beginning of the	previous year to
				Amount for the	Amount for the	year to the end	the end of the
				current period	previous period	of the reporting	reporting period
				(July to	(July to	period (January	(January to
Items				September)	September)	to September)	September)
1. Total operating income				622,690	563,181	1,730,488	1,549,816
Including:			Operating income	622,690	563,181	1,730,488	1,549,816
2. Total cost			for operations	464,093	391,091	1,271,103	1,096,959
Including:			Cost for operations	384,195	313,071	1,033,052	883,488
			Tax and surcharges	7,485	11,844	33,951	36,746
			Selling expenses	1,041	1,048	3,771	5,245
			Administrative expenses	28,944	39,514	84,575	92,287
			Financial expenses	42,428	25,614	118,677	78,387
Including:			Interest expenses	65,441	43,656	154,023	106,525
			Interest income	16,968	14,286	28,214	23,885
			Impairment less of assets	0	0	0	806
			Credit impairment loss	0	0	-2,923	0
			Add: Other income	19,984	33,401	109,599	98,265
			Investment income
			(losses are stated
			by “-”)	0	0	200	400
3. Operation			profit (losses are stated
by “-”)				178,581	205,491	569,184	551,522
Add: Non-operating income				2,704	764	6,803	20,056
Less: Non-operating expenses				25	1,274	1,012	1,402
4. Total profit (total losses are stated
by “-”)				181,260	204,981	574,975	570,176
Less: Income tax expenses				41,786	40,894	134,014	136,670
5. Net	profit		(net losses are stated by “-”)	139,474	164,087	440,961	433,506
(1)	Classified by continuity of
	operations			139,474	164,087	440,961	433,506
	I.	Net profit from continuing
		operations (net losses are stated
		by	“-”)	139,474	164,087	440,961	433,506

— 17 —

					Amount for the
				Amount for the	period from the
				period from the	beginning of the
				beginning of the	previous year to
		Amount for the	Amount for the	year to the end	the end of the
		current period	previous period	of the reporting	reporting period
		(July to	(July to	period (January	(January to
Items		September)	September)	to September)	September)
	II. Net profit from discontinued
	operations (net losses are stated
	by “-”)	—	—	—	—
(2)	Classified by ownership of the
	equity	139,474	164,087	440,961	433,506
	I. Net profit attributable to the
	owners of the Company	134,588	155,037	417,153	410,095
	II. Profit or loss attributable to
	minority shareholders	4,886	9,050	23,808	23,411
6. Net	amount of other comprehensive
income (after tax)		—	—	—	—
7. Total comprehensive income		139,474	164,087	440,961	433,506
Total comprehensive income attributable
to the owners of the Company		134,588	155,037	417,153	410,095
Total comprehensive income attributable
to minority shareholders		4,886	9,050	23,808	23,411
8. Earnings per share:
(1)	Basic earnings per share (RMB per
	share)	0.09	0.11	0.29	0.29
(2)	Diluted earnings per share (RMB per
	share)	0.09	0.11	0.29	0.29

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 2018

Unit: ’000 Currency: RMB

						Amount for the
				Amount for the		period from the
				period from the		beginning of the
				beginning of the		previous year to
		Amount for the	Amount for the	year to the end		the end of the
		current period	previous period	of the reporting		reporting period
		(July to	(July to	period (January		(January to
Items		September)	September)	to September)		September)
1. Operating income		269,213	274,340		770,904	728,121
Less:	Cost for operations	158,383	136,539		409,630	374,957
	Tax and surcharges	1,250	4,482		12,441	15,165
	Administrative expenses	16,605	29,719		47,810	59,458
	Financial expenses	29,677	16,738		88,265	49,212
	Including: Interest expenses	44,010	29,358		123,395	78,406
	Interest income	12,064	9,773		31,850	25,716
Add:	Other income	5,687	16,761		63,236	49,631
	Investment income (losses are
	stated by “-”)	126,820	37,820		127,020	38,220
2. Operation profit (losses are stated
by “-”)		195,805	141,443		403,014	317,180
Add: Non-operating income		33	384		47	16,721
Less: Non-operating expenses		12	25		686	25
3. Total profit (total losses are stated
by “-”)		195,826	141,802		402,375	333,876
Less: Income tax expenses		17,244	22,243		68,831	73,914

— 19 —

					Amount for the
				Amount for the	period from the
				period from the	beginning of the
				beginning of the	previous year to
		Amount for the	Amount for the	year to the end	the end of the
		current period	previous period	of the reporting	reporting period
		(July to	(July to	period (January	(January to
Items		September)	September)	to September)	September)
4. Net	profit (net losses are stated by “-”)	178,582	119,559	333,544	259,962
(1)	Net profit form continuing
	operations	178,582	119,559	333,544	259,962
5. Net	amount of other comprehensive
income (after tax)		—	—	—	—
6. Total comprehensive income		178,582	119,559	333,544	259,962
7. Earnings per share:
(1)	Basic earnings per share (RMB per
	share)	0.13	0.08	0.23	0.18
(2)	Diluted earnings per share (RMB per
	share)	0.13	0.08	0.23	0.18

— 20 —

Consolidated Cash Flow Statement

January to September 2018

Unit: ’000 Currency: RMB

		Amount for the period
	Amount for the period	from the beginning of
	from the beginning of	the previous year to
	the year to the end of	the end of the
	the reporting period	reporting period
	(January to	(January to
Items	September)	September)
1. Cash flows from operating activities:
Cash received from sales of goods and
rendering of services	1,709,396	1,344,647
Taxes and levies rebate received	84,104	111,057
Cash received relating to other operating
activities	258,259	363,818
Sub-total of cash inflow from operating
activities	2,051,759	1,819,522
Cash paid for goods and services	646,291	512,327
Cash paid to and on behalf of employees	213,071	192,779
Payments of taxes and levies	402,726	410,148
Cash payments relating to other operating
activities	164,054	289,218
Sub-total of cash outflow from operating
activities	1,426,142	1,404,472
Net cash flows from operating activities	625,617	415,050
2. Cash flows from investing activities:
Cash received from returns on investments	200	400
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets	2,535	31
Cash received relating to other investing
activities	24,900	0
Sub-total of cash inflow from investing
activities	27,635	431
Cash paid to acquire and construct fixed
assets, intangible assets and other
long-term assets	1,220,266	591,552
Cash paid to acquire investments	600,521	0
Cash payments relating to other investing
activities	9,102	3,000
Sub-total of cash outflow from investing
activities	1,829,889	594,552
Net cash flows from investing activities	-1,802,254	-594,121

— 21 —

		Amount for the period
	Amount for the period	from the beginning of
	from the beginning of	the previous year to
	the year to the end of	the end of the
	the reporting period	reporting period
	(January to	(January to
Items	September)	September)
3. Cash flows from financing activities:
Cash received from capital contributions	79,463	0
Including: Cash received from capital
contributions by minority
shareholders of subsidiaries	79,463	0
Cash received from borrowings	1,516,799	622,921
Cash received from issuance of debentures	1,100,000	0
Sub-total of cash inflow from financing
activities	2,696,262	622,921
Cash paid for repayments of debts	1,374,917	166,164
Cash paid for distribution of dividends and
profits or for interest expenses	107,482	144,651
Including: Dividends and profits paid by
subsidiaries to their minority
shareholders	780	780
Sub-total of cash outflow from financing
activities	1,482,399	310,815
Net cash flows from financing activities	1,213,863	312,106
4. Effect of foreign exchange rate changes on
cash and cash equivalents	—	—
5. Net increase in cash and cash equivalent	37,226	133,035
Add: Balance of cash and cash equivalents
at the beginning of period	1,893,689	1,181,120
6. Balance of cash and cash equivalents at
the end of period	1,930,915	1,314,155

— 22 —

Cash Flow Statement of the Company

January to September 2018

Unit: ’000 Currency: RMB

		Amount for the period
	Amount for the period	from the beginning of
	from the beginning of	the previous year to
	the year to the end of	the end of the
	the reporting period	reporting period
	(January to	(January to
Items	September)	September)
1. Cash flows from operating activities:
Cash received from sales of goods and
rendering of services	965,952	567,205
Taxes and levies rebate received	36,791	56,653
Cash received relating to other operating
activities	495,477	696,279
Sub-total of cash inflow from operating
activities	1,498,220	1,320,137
Cash paid for goods and services	276,718	204,227
Cash paid to and on behalf of employees	90,994	78,303
Payments of taxes and levies	152,813	220,003
Cash payments relating to other operating
activities	852,513	770,429
Sub-total of cash outflow from operating
activities	1,373,038	1,272,962
Net cash flows from operating activities	125,182	47,175
2. Cash flows from investing activities:
Cash received from returns on investments	136,900	38,220
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets	86	0
Cash received relating to other investing
activities	5,000	0
Sub-total of cash inflow from investing
activities	141,986	38,220
Cash paid to acquire and construct fixed
assets, intangible assets and other
long-term assets	381,518	141,789
Cash paid for investments	823,906	196,651
Cash payments relating to other investing
activities	9,101	0
Sub-total of cash outflow from investing
activities	1,214,525	338,440
Net cash flows from investing activities	-1,072,539	-300,220

— 23 —

		Amount for the period
	Amount for the period	from the beginning of
	from the beginning of	the previous year to
	the year to the end of	the end of the
	the reporting period	reporting period
	(January to	(January to
Items	September)	September)
3. Cash flows from financing activities:
Cash received from borrowings	1,250,000	500,000
Cash received from issuance of debentures	1,100,000	0
Sub-total of cash inflow from financing
activities	2,350,000	500,000
Cash repayments of borrowings	1,199,000	0
Cash paid for distribution of dividends and
profits or for interest expenses	86,182	115,811
Sub-total of cash outflow from financing
activities	1,285,182	115,811
Net cash flows from financing activities	1,064,818	384,189
4. Effect of foreign exchange rate changes on
cash and cash equivalents	—	—
5. Net increase in cash and cash equivalent	117,461	131,144
Add: Balance of cash and cash equivalents
at the beginning of period	779,808	454,678
6. Balance of cash and cash equivalents at
the end of period	897,269	585,822

— 24 —