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Rego Interactive Co., Ltd Interim / Quarterly Report 2021

Oct 25, 2021

50588_rns_2021-10-25_df947393-548f-4576-9eb4-37442495163e.pdf

Interim / Quarterly Report

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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 2021

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 of the Company

2.1 Major accounting data and financial indicators

Unit: 0’000 Currency: RMB

For the current
reporting period
(July to September)
Increase/decrease
for the current
reporting period
as compared to
the same period
lastyear(%)
For the period
from the beginning
of the year to
the end of the
reporting period
(January to
September)
Increase/decrease
for the period from
the beginning
of the year
to the end of the
reporting period
as compared to the
same period
lastyear(%)
Operatingincome 136,061.1 41.91 326,456.5 31.63
Net profit attributable to the shareholders of
the Company
24,019.9 33.65 54,468.8 24.74
Net profit attributable to the shareholders of
the Company after deduction of
extraordinary profit or loss items
22,460.1 40.52 48,895.3 26.55
Net cash flow from operatingactivities N/A N/A 82,611.7 70.82
Basic earningsper share(RMB/share) 0.17 33.65 0.38 22.58
Diluted earningsper share(RMB/share) 0.17 33.65 0.38 22.58
Weighted average return
ratio on net assets(%)
3.50 Increased by 0.67
percentagepoints
8.01 Increased by 1.10
percentagepoints
As at the end
of the current
reporting period
As at the end of thepreviousyear Increase/decrease
as at the end
of the current
reporting period
as compared
to the end
of the previous
year(%)
Total assets 2,148,083.7 1,880,296.9 14.24
Owner’s equity attributable to the shareholders
of the Company

701,270.6
659,135.1 6.39

2

2.2 Extraordinary profit or loss items and amounts

Unit: 0’000 Currency: RMB

Unit: 0’000 Currency: RMB
Items Amounts for
the current
reporting period
(July to September)
Amounts for the period
from the beginning of
the year to the end of
the reporting period
(January to September)
Gain or loss on disposal of non-current assets (including the
portion offset bytheprovision for the impairment of assets)
-216.6 -216.9
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 orquantitybasis
1,999.0 6,677.4
Other non-operating income and expenditure except for
those mentioned above
35.9 -39.8
Impact on income tax -284.5 -1,104.1
Impact on minorityinterests(after tax) 26.0 256.9
Total 1,559.8 5,573.5

2.3 Description of and reasons for changes in major accounting data and financial indicators

Items Change (%) Main reason
Currency funds 60.99 Mainly due to operating receipts and the
increase in funds from debt financing during
the currentperiod.
Notes receivable 139.01 Mainly due to new bank acceptance notes
receivable by subsidiaries during the current
period.
Prepayments 275.96 Mainly due to prepayment of sludge disposal
costs duringthe currentperiod.
Inventories 47.67 Mainly due to the addition of raw materials
such as pharmaceuticals during the current
period.
Contract assets N/A Mainly due to the inclusion of construction
service income corresponding to PPP
projects under construction in contract assets
in accordance with the “Interpretation of
Accounting Standards for Business Enterprises
No. 14” duringthe currentperiod.
Non-current assets due within
one year
743.11 Mainly due to recognition of availability
service fees receivable due within one year
in accordance with the “Interpretation of
Accounting Standards for Business Enterprises
No. 14” duringthe currentperiod.
Other current assets 34.69 Mainly due to the increase in input VAT to be
deducted duringthe currentperiod.

3

Items Change (%) Main reason
Long-term receivables 111.46 Mainly due to recognition of availability
service fees for PPP projects of the Company
as long-term receivables in accordance with
the “Interpretation of Accounting Standards
for Business Enterprises No. 14” during the
currentperiod.
Construction in progress 106.77 Mainly due to the increase in investment in the
construction of cooling and heating, hazardous
waste and other projects under non-franchise
model duringthe currentperiod.
Goodwill N/A Mainly due to recognition of goodwill on the
hazardous waste projects acquired during the
currentperiod.
Short-term borrowings N/A Mainly due to new short-term borrowings
duringthe currentperiod.
Accrued payroll –71.59 Mainly due to payment of year-end bonus
accrued at the end of 2020 during the current
period.
Long-term borrowings 71.36 Mainly due to new long-term borrowings
duringthe currentperiod.
Debentures payable –100.00 Mainly due to repayment of 18 Jinchuang
Corporate Bonds (Phase I) during the current
period.
Operating revenue 31.63 Due to increased income as a result of increase
in sewage treatment of existing projects of
the Company, and recognition of construction
service income corresponding to PPP projects
under construction in accordance with the
“Interpretation of Accounting Standards for
Business Enterprises No. 14” during the
currentperiod.
Operating costs 37.29 Due to increased operating costs of the
Company’s existing projects and newly
operated projects as a result of growth in
business volume and improved effluent
water quality standards, and recognition of
construction service cost corresponding to PPP
projects under construction in accordance with
the “Interpretation of Accounting Standards
for Business Enterprises No. 14” during the
currentperiod.
Sales expenses 91.82 Mainly due to the increase in hazardous wastes
and sales expenses duringthe currentperiod.

4

Items Change (%) Main reason
Research and development
expenses
54.76 Mainly due to the increase in research and
development investment during the current
period as compared to the same period last
year.
Other income –34.03 Mainly due to the decrease in the VAT refund
upon collection in line with the decrease in the
VAT paid as a result of lower VAT rate during
the currentperiod.
Credit impairment losses N/A Mainly due to provision for bad debts on
receivables made by subsidiaries during the
currentperiod.
Net cash flow from operating
activities
70.82 Mainly due to the increase in the operating
receipts such as sewage treatment service fee
during the current period as compared to the
sameperiod lastyear.
Net cash flow from financing
activities
978.63 Mainly due to the increase in new debt
financing during the current period as
compared to the sameperiod lastyear.
Net increase in cash and
cash equivalents
300.18 Mainly due to the combined effect of cash
flow from operating, investing and financing
activities.

5

3. Information on Shareholders

3.1 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

shares) as at the end of the reporting period shares) as at the end of the reporting period shares) as at the end of the reporting period shares) as at the end of the reporting period shares) as at the end of the reporting period
Total number of shareholders 64,441, of which 61 were
shareholders of H shares
Shareholdings of the top ten shareholders
Name of shareholders(full name) Nature of
shareholders
Number of
shares held
at the end
of the
reporting
period
(shares)
Percentage
of
shareholdings
(%)
Number of
restricted
shares held
(shares)
Pledged, marked or frozen
Status of
shares
Number
(shares)
Tianjin Municipal Investment Company
Limited(“TMICL”)
State-owned
legalperson
715,565,186 50.14 0 None
HKSCC Nominees Limited Other 337,954,810 23.68 0 None
Central Huijin Asset Management Ltd. State-owned
legalperson
14,169,800 0.99 0 None
Hong Kong Securities Clearing Company
Limited
Other 9,466,054 0.66 0 None
Zhejiang Jinxin Construction Engineering
Co., Ltd. (浙江錦鑫建設工程有限公司)
Domestic
non-state-owned
legalperson
6,499,900 0.46 0 None
Hou Hongyan (侯紅燕) Domestic
natural
person
4,400,000 0.31 0 None
Shenyang Railway Coal Group Co., Ltd.
(瀋陽鐵道煤炭集團有限公司)
State-owned
legalperson
1,500,000 0.11 0 None
Zhou Lunhui (周倫慧) Domestic
natural
person
1,270,000 0.09 0 None
Wu Jinxin (吳俊新) Domestic
natural
person
1,234,300 0.09 0 None
China Merchants Securities Co., Ltd Stated-owned
legalperson
1,180,400 0.08 0 None

6

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
Name of shareholders Number of
non-restricted
circulating shares
held(shares)
Type and number of shares
Type Number(shares)
TMICL 715,565,186 OrdinaryRMB Shares 715,565,186
HKSCC Nominees Limited 337,954,810 H Shares 337,954,810
Central Huijin Asset Management Ltd. 14,169,800 OrdinaryRMB Shares 14,169,800
Hong Kong Securities Clearing
CompanyLimited
9,466,054 Ordinary RMB Shares 9,466,054
Zhejiang Jinxin Construction Engineering
Co., Ltd.(浙江錦鑫建設工程有限公司)
6,499,900 Ordinary RMB Shares 6,499,900
Hou Hongyan(侯紅燕) 4,400,000 OrdinaryRMB Shares 4,400,000
Shenyang Railway Coal Group Co., Ltd.
(瀋陽鐵道煤炭集團有限公司)
1,500,000 Ordinary RMB Shares 1,500,000
Zhou Lunhui(周倫慧) 1,270,000 OrdinaryRMB Shares 1,270,000
Wu Jinxin(吳俊新) 1,234,300 OrdinaryRMB Shares 1,234,300
China Merchants Securities Co., Ltd 1,180,400 OrdinaryRMB Shares 1,180,400
Notes on the connected
relationship or parties acting
in concert among the above
shareholders
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
shareholders of non-restricted circulating shares and the top ten 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. As at the end of the reporting period, Ningbo BSLS
Trade Co., Ltd.(寧波百思樂斯貿易有限公司) and its concert parties
Ningbo Ningdian Investment Development Co., Ltd.
(寧波寧電投資發
展有限公司) and LVNENG Investment & Development Co., Ltd. (Hong
Kong) held a total of 124,498,000 H shares of the Company, representing
8.72% of the total share capital of the Company, and none of the shares
were pledged.
(2) None of the top ten shareholders are strategic investors of the
Company.
Description on engagement in margin
trading and short selling and refinancing
business by top ten shareholders and top
ten non-restricted shareholders (if any)

Zhejiang Jinxin Construction Engineering Co., Ltd. (浙江錦鑫建設工程有限公司)
held, in aggregate, 6,499,900 shares of the Company, of which, 394,300 shares through
ordinary securities account and 6,105,600 shares through credit securities account; Hou
Hongyan (侯紅燕) held, in aggregate, 4,400,000 shares of the Company, of which,
0 shares through ordinary securities account and 4,400,000 shares through credit
securities account; Zhou Lunhui (周倫慧) held, in aggregate, 1,270,000 shares of the
Company, of which, 0 shares through ordinary securities account and 1,270,000 shares
through credit securities account; Wu Jinxin (吳俊新) held, in aggregate, 1,234,300
shares of the Company, of which, 0 shares through ordinary securities account and
1,234,300 shares through credit securities account.

7

4. Reminders

  • 4.1 Other important information on operations of the Company during the reporting period on which investor’s attention are drawn

  • (1) The Company convened the 32nd meeting of the eighth session of the Board on 13 July 2020 to consider the matters relating to the non-public issuance of A shares, and the relevant matters were considered and approved at the 2020 First Extraordinary General Meeting, the 2020 First H Shareholders’ Class Meeting and the 2020 First A Shareholders’ Class Meeting of the Company held on 7 September 2020. For details, please refer to the relevant announcements published on the websites of the Shanghai Stock Exchange (http://www.sse. com.cn) and the Hong Kong Stock Exchange (http://www.hkex.com.hk) on 14 July 2020 and 8 September 2020, respectively, as well as the Company’s circular published on the website of the Hong Kong Stock Exchange (http://www.hkex.com.hk) on 21 August 2020.

In light of the changes in the capital market condition, the Company adjusted the proposal of the 2020 non-public issuance of A shares of the Company having considered a combination of various factors in respect of the actual situation, development and planning of the Company, after careful analysis and repeated communications with respective parties. On 30 March 2021, the Company held the 47th meeting of the eighth session of the Board, on which the “Resolution regarding adjustment to the proposed 2020 non-public issuance of A shares” 《關於調整( 2020 年度非公開發行 A 股股票方案的議案》) were considered and approved to adjust the proposed 2020 non-public issuance of A shares. On the same day, the Company issued an announcement on the reply to feedback (revised version) on “Notice regarding CSRC’s Second Feedback on the Review of Administrative Permission Items”. For details of the above announcements, please refer to the relevant announcements published on the websites of the Shanghai Stock Exchange (http://www.sse.com.cn) and the Hong Kong Stock Exchange (http://www.hkex.com.hk) on 31 March 2021.

8

Since the validity period of the resolution of the general meeting on the 2020 non-public issuance of A shares of the Company and the validity period for the authorization granted by the shareholders’ meeting of the Company to the Board and its authorized representative(s) to deal with the relevant issues on the 2020 non-public issuance of A shares of the Company were expired on 7 September 2021, to guarantee continuity of the related work on the 2020 non-public issuance of A shares of the Company, the Company held the 57th meeting of the eighth session of the Board on 3 September 2021, on which “Resolution regarding an extension of the validity period of the resolution of the general meeting on the 2020 nonpublic issuance of A shares of the Company” (《關於延長公司 2020 年度非公開發行 A 股 股票決議有效期的議案》) and “Resolution to propose to the shareholders’ meeting for the authorization granted to the Board and its authorized representative(s) to deal with the nonpublic issuance of shares” (《關於提請股東大會授權董事會及其授權人士全權辦理公司 非公開發行股票事宜有效期延期的議案》) were considered and approved. The Board of the Company agreed to extend the validity period of the resolution of the general meeting on the 2020 non-public issuance of A shares of the Company and the validity period of the proposal to the shareholders’ meeting of the Company for authorization granted to the Board and its authorized representative(s) to deal with the non-public issuance of A shares of the Company for 12 months from 7 September 2021 to 7 September 2022. Relevant matters were considered and approved at the 2021 Second Extraordinary General Meeting, the 2021 First H Shareholders’ Class Meeting and the 2021 First A Shareholders’ Class Meeting of the Company held on 15 October 2021. For details, please refer to the relevant announcements published on the websites of the Shanghai Stock Exchange (http://www.sse.com.cn) and the Hong Kong Stock Exchange (http://www.hkex.com.hk) on 3 September 2021 and 15 October 2021, respectively, as well as the Company’s circular published on the website of the Hong Kong Stock Exchange (http://www.hkex.com.hk) on 27 September 2021.

The 2020 non-public issuance of A shares of the Company remains subject to the obtaining of approval (the “ Approval ”) from the China Securities Regulatory Commission (the “ CSRC ”). There are still uncertainties on whether the Company can obtain the Approval in relation to the 2020 non-public issuance of A shares. The Company will perform its obligation of information disclosure in a timely manner according to the progress of the approval by CSRC. Shareholders and potential shareholders of the Company are advised to exercise caution when dealing in the securities of the Company.

9

  • (2) The impacts of the implementation of the “Accounting Standards for Business Enterprises No. 14 – Revenue” issued by the Ministry of Finance of the People’s Republic of China (“ PRC ”) on the Company: (1) this report is prepared in accordance with new accounting standards; (2) in view of the business conditions of the PPP projects, the Company has made adjustments to the retained earnings as at the beginning of 2021 and the amounts of relevant items in the financial statements in respect of the contracts of the relevant PPP projects. The specific impacts are as follows:

Unit: Yuan Currency: RMB

Amounts of the impacts Amounts of the impacts
on the balance as at
Affected items in the financial statements 1 January 2021
The Group The Company
Long-term receivables 1,690,626,429.93 0
Contract assets 258,758,430.48 0
Intangible assets -1,753,383,335.85 0
Trade receivables -133,401,583.16 0
Deferred income tax liabilities 14,665,917.93 0
Undistributed profits as at the beginning of the period 47,934,023.47 0

The change in accounting policies is effected by the Company in accordance with the provisions and requirements of the relevant notice issued by the Ministry of Finance of the PRC and in compliance with the provisions of relevant laws and regulations and the actual situation of the Company and will not have material impact on the financial position and operating results of the Company and there is no damage to the interests of the Company and its shareholders.

10

5. Quarterly Financial Statements

5.1 Type of audit opinion

□ Applicable √ Not applicable

5.2 Financial statements

Consolidated Balance Sheet

As at 30 September 2021

Unit: ’000 Currency: RMB

Items
CURRENT ASSETS:
Currency funds
Notes receivable
Trade receivables
Prepayments
Other receivables
Inventories
Contract assets
Non-current assets due within one year
Other current assets
Total current assets
NON-CURRENT ASSETS:
Long-term receivables
Long-term equity investments
Other equity instruments investments
Fixed assets
Construction in progress
Intangible assets
Goodwill
Deferred income tax assets
Other non-current assets
Total non-current assets
TOTAL ASSETS
Balance
as at the end
of the period
2,678,353
6,348
2,417,379
98,578
23,287
25,784
374,433
169,036
110,754
5,903,952
3,483,568
195,000
2,000
972,748
20,385
10,119,240
498,766
13,661
271,517
15,576,885
21,480,837
Balance
as at the
beginning of
the year
1,663,646
2,656
1,959,083
26,220
24,117
17,460
0
20,049
82,228
3,795,459
1,647,402
195,000
2,000
809,495
9,859
11,999,818
0
12,965
330,971
15,007,510
18,802,969

11

Items
CURRENT LIABILITIES:
Short-term borrowings
Trade payables
Contract liabilities
Accrued payroll
Taxes payable
Other payables
Including: Interests payable
Dividends payable
Non-current liabilities due within one year
Total current liabilities
NON-CURRENT LIABILITIES:
Long-term borrowings
Debentures payable
Long-term payables
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
TOTAL LIABILITIES
OWNERS’ EQUITY (OR SHAREHOLDERS’ EQUITY):
Paid-up capital (or share capital)
Capital reserves
Surplus reserves
Undistributed Profits
Total equity attributable to owners of the Company
(or shareholders’ equity)
Minority interests
Total owners’ equity (or shareholders’) equity
TOTAL LIABILITIES AND OWNERS’ EQUITY
(OR SHAREHOLDERS’ EQUITY)
Balance
as at the end
of the period
142,819
338,570
589,612
24,327
53,196
1,105,289
1,635
0
1,616,893
3,870,706
7,244,895
0
220,113
14,691
1,959,646
125,104
34,000
9,598,449
13,469,155
1,427,228
431,024
619,054
4,535,400
7,012,706
998,976
8,011,682
21,480,837
Balance
as at the
beginning of
the year
0
294,973
527,410
85,620
56,841
955,773
2,097
142
1,596,263
3,516,880
4,227,894
1,098,848
247,734
13,737
1,981,434
100,799
34,000
7,704,446
11,221,326
1,427,228
431,024
619,054
4,114,045
6,591,351
990,292
7,581,643
18,802,969

12

Consolidated Income Statement January to September 2021

Unit: ’000 Currency: RMB

Amounts for
the period
from the
Amounts for beginning of the
the period previous year to
from the the end of the
beginning corresponding
of the year to reporting period
the end of the of the
reporting period previous year
(January (January to
Items to September) September)
1. Total operating income 3,264,565 2,480,166
Including: Operating income 3,264,565 2,480,166
2. Total operating costs 2,643,707 2,006,262
Including: Operating costs 2,281,942 1,662,080
Tax and surcharges 27,439 31,114
Sales expenses 22,660 11,813
Administrative expenses 126,509 108,976
Research and development expenses 6,930 4,478
Finance expenses 178,227 187,801
Including: Interest expenses 237,093 195,048
Interest income 82,464 17,906
Add: Other income 78,805 119,459
Credit impairment losses
(losses are stated by “-”) –2,076 0
3. Operating profit (losses are stated by “-”) 697,587 593,363
Add: Non-operating income 674 726
Less: Non-operating expenses 3,414 2,807
4. Total profit (total losses are stated by “-”) 694,847 591,282
Less: Income tax expenses 112,064 111,491
5. Net profit (net losses are stated by “-”) 582,783 479,791
(I) Classified by continuity of operations
1.
Net profit from continuing operations
(net losses are stated by “-”) 582,783 479,791
(II) Classified by ownership of the equity
1.
Net profit attributable to shareholders of the
Company (net losses are stated by “-”) 544,688 436,674
2.
Loss or profit attributable to minority
shareholders (net losses are stated by “-”) 38,095 43,117

13

Amounts for
the period
from the
Amounts for beginning of the
the period previous year to
from the the end of the
beginning corresponding
of the year to reporting period
the end of the of the
reporting period previous year
(January (January to
Items to September) September)
6. Total comprehensive income 582,783 479,791
(I) Total comprehensive income attributable to
owners of the Company 544,688 436,674
(II) Total comprehensive income attributable to
minority shareholders 38,095 43,117
7. Earnings per share:
(I) Basic earnings per share (RMB/share) 0.38 0.31
(II) Diluted earnings per share (RMB/share) 0.38 0.31

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.

14

Consolidated Cash Flow Statement January to September 2021

Unit: ’000 Currency: RMB

Amounts for the
period from the
beginning of the
previous year to
Amounts for the the end of the
period from the corresponding
beginning of the reporting period
year to the end of the
of the reporting previous year
period (January (January to
Items to September) September)
1. Cash flow from operating activities:
Cash received from sales of goods and rendering of
services 2,511,581 1,930,950
Taxes and levies rebate received 27,586 79,902
Cash receipts relating to other operating activities 126,933 172,620
Sub-total of cash inflow from operating activities 2,666,100 2,183,472
Cash paid for goods and services 1,161,559 946,275
Cash paid to and on behalf of employees 328,146 270,243
Payment of taxes and levies 220,616 303,130
Cash payments relating to other operating activities 129,662 180,218
Sub-total of cash outflow from operating activities 1,839,983 1,699,866
Net cash flow generated from operating activities 826,117 483,606
2. Cash flow from investing activities:
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 204 49
Cash receipts from other investing activities 0 3,900
Sub-total of cash inflow from investing activities 204 3,949
Cash paid to acquire and construct fixed assets,
intangible assets and other long-term assets 730,399 1,137,277
Cash paid for investments 696,008 0
Cash payments relating to other investing activities 0 1,500
Sub-total of cash outflow from investing activities 1,426,407 1,138,777
Net cash flow generated from investing activities –1,426,203 –1,134,828

15

Amounts for the
period from the
beginning of the
previous year to
Amounts for the
the end of the
period from the
corresponding
beginning of the
reporting period
year to the end
of the
of the reporting
previous year
period (January
(January to
Items to September) September)
3. Cash flow from financing activities:
Cash received from assimilated investments 2,298 15,647
Including: cash received from minority shareholders’
investments assimilated by subsidiaries 2,298 15,647
Cash received from borrowings 4,390,126 2,011,429
Sub-total of cash inflow from financing activities 4,392,424 2,027,076
Cash paid for repayment of debt 2,348,660 1,520,925
Cash paid for distribution of dividends, profits or
interest payments 438,048 357,285
Including: Dividends and profits paid by subsidiaries
to minority shareholders 31,709 31,925
Sub-total of cash outflow from financing activities 2,786,708 1,878,210
Net cash flow generated from financing activities 1,605,716 148,866
4. Effect of foreign exchange rate changes on
cash and cash equivalent 0 0
5. Net increase in cash and cash equivalents 1,005,630 –502,356
Add: Balance of cash and cash equivalents at the
beginning of the period 1,652,657 2,066,301
6. Balance of cash and cash equivalents at the end of
the period 2,658,287 1,563,945
5.3 Adjustments to the financial statements as at the beginning of the year during which
new lease standards have been adopted for the first time since 2021

□ Applicable √ Not applicable

By order of the Board Liu Yujun Chairman

Tianjin, the PRC 25 October 2021

As at the date of this announcement, the Board comprises three executive Directors: Mr. Liu Yujun, Ms. Wang Jing and Mr. Niu Bo; two non-executive Directors: Mr. Gu Wenhui and Mr. Si Xiaolong; and three independent non-executive Directors: Mr. Di Xiaofeng, Mr. Guo Yongqing and Mr. Wang Xiangfei.

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