dongfeng sci-tech group co., ltd. · board of directors and the supervisory committee of dongfeng...

东沣科技集团股份有限公司 2019 年第一季度报告全文

1

东沣科技集团股份有限公司

Dongfeng Sci-Tech Group CO., Ltd.

First Quarterly Report 2019

April 2019


2

Section I. Important Notes

Board of Directors and the Supervisory Committee of Dongfeng Sci-Tech Group

CO., Ltd. (hereinafter referred to as the Company) and its directors, supervisors

and senior executives should guarantee the reality, accuracy and completion of

the quarterly report, there are no any fictitious statements, misleading

statements or important omissions carried in this report, and shall take legal

responsibilities, individual and/or joint.

All Directors are attended the Board Meeting for Quarterly Report deliberation.

Zhao Yongsheng, Person in charge of the Company, Zhao Yongsheng, person in

charger of accounting works and Liu Fengguo, person in charger of accounting

organ (accounting officer) hereby confirm that the Financial Report of this

Quarterly Report is authentic, accurate and complete.

Note: The Report is prepared in bilingual versions of Chinese and English

respectively, in the event of any discrepancy in understanding the two

aforementioned versions, the Chinese version shall prevail.


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Section II. Company Information

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

□ Yes √No

Current Period Same period of last year Changes of this period over

same period of last year

Operating income (RMB) 19,742,832.21 57,256,600.57 -65.52%

Net profit attributable to shareholders of

the listed company (RMB) -14,173,060.95 1,206,225.64 -1,274.99%

Net profit attributable to shareholders of

the listed company after deducting

non-recurring gains and losses (RMB)

-14,310,855.79 -1,688,014.85 -727.97%

Net cash flow arising from operating

activities (RMB) 18,406,542.28 13,873,390.65 32.68%

Basic earnings per share (RMB/Share) -0.020 0.002 -1,100.00%

Diluted earnings per share (RMB/Share) -0.020 0.002 -1,100.00%

Weighted average ROE (%) -4.22% 0.33% -4.55%

At the end of the reporting

period At the end of last year

Changes of this period-end

over same period-end of last

year

Total assets (RMB) 672,082,000.87 624,370,817.40 7.64%

Net assets attributable to shareholder of

listed company (RMB) 328,313,065.98 351,593,999.08 -6.62%

Items of non-recurring gains and losses

√ Applicable □ Not applicable

In RMB

Item Amount from year-begin to

period-end Note

Gains/losses from the disposal of non-current asset (including the

write-off that accrued for impairment of assets) 467,465.69

Held transaction financial asset, gains/losses of changes of fair

values from transaction financial liabilities, and investment gains

from disposal of transaction financial asset, transaction financial

liabilities and financial asset available for sales, exclude the

effective hedging business relevant with normal operations of the

Company

87,723.37


4

Other non-operating income and expenditure except for the

aforementioned items -371,462.62

Less: impact on income tax 45,931.60

Total 137,794.84 --

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies

Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to

the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their

Securities to the Public --- Extraordinary Profit/loss, explain reasons

□ Applicable √ Not applicable

In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of

extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to

the Public --- Extraordinary Profit/loss

II. Total number of shareholders at the end of this report period and top ten shareholders

1. Number of common shareholders and preference shareholders with voting rights recovered and top ten common

shareholders

In shares

Total number of common

shareholders at the end of report

period

17,698

Total preference shareholders with

voting rights recovered at end of

reporting period (if applicable)

0

Top ten shareholders

Shareholder’s

name

Nature of

shareholder

Proportion of

shares held

Amount of shares

held

Amount of

non-tradable

shares held

Number of share pledged/frozen

State of share Amount

Wang Dong Domestic natural

person 29.49% 208,324,800 208,324,800

China Everbright

Securities (HK)

Limited

Overseas legal

person 8.89% 62,822,845 0

GUOTAI

JUNAN

SECURITIES(H

ONGKONG)

LIMITED

Overseas legal

person 6.60% 46,639,226 0

Chengde North

Industrial

Corporation

Domestic

non-state-owned

legal person

2.62% 18,517,651 18,517,651

Wang Zhengsong Domestic natural

person 1.89% 13,327,891 13,327,891


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Wang Wensheng Domestic natural

person 1.03% 7,258,007 0

Su Youhe Domestic natural

person 1.03% 7,243,448 0

Zhou Haihong Domestic natural

person 0.95% 6,711,600 0

CORE

PACIFIC-YAMA

ICHI

INTERNATION

AL (H.K.)

LIMITED

Overseas legal

person 0.86% 6,051,543 0

Haitong

International

Securities

Company

Limited-Account

Client

Overseas legal

person 0.77% 5,473,175 0

Top ten shareholders with tradable shares held

Shareholder’s name Amount of tradable shares held Type of shares

Type Amount

China Everbright Securities (HK)

Limited 62,822,845

Domestically

listed foreign

shares

62,822,845

GUOTAI JUNAN

SECURITIES(HONGKONG)

LIMITED

46,639,226

Domestically

listed foreign

shares

46,639,226

Wang Wensheng 7,258,007

Domestically

listed foreign

shares

7,258,007

Su Youhe 7,243,448

Domestically

listed foreign

shares

7,243,448

Zhou Haihong 6,711,600

Domestically

listed foreign

shares

6,711,600

CORE PACIFIC-YAMAICHI

INTERNATIONAL (H.K.)

LIMITED

6,051,543

Domestically

listed foreign

shares

6,051,543

Haitong International Securities 5,473,175 Domestically 5,473,175


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Company Limited-Account Client listed foreign

shares

Shenwan Hongyuan Securities

(Hong Kong) Co., Ltd. 4,995,920

Domestically

listed foreign

shares

4,995,920

Tang Haiming 4,390,000

Domestically

listed foreign

shares

4,390,000

Li Tianyun 3,973,900

Domestically

listed foreign

shares

3,973,900

Explanation on associated

relationship among the aforesaid

shareholders

The Company is unknown whether there exists associated relationship or belongs to

consistent actor regulated by “management method for acquisition of listed company” among

the above said shareholders.

Explanation on top ten shareholders

involving margin business (if

applicable)

N/A

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement

dealing in reporting period

□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back

agreement dealing in reporting period.

2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred

stock held



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Section III. Significant Events

I. Particulars about material changes in items of main accounting statement and financial

index and explanations of reasons

√Applicable □Not applicable

Item Ending balance

Opening balance

Change ratio

(%)

Reasons

（or current

period）

（or last period）

Other account receivable 13,722,717.25 8,588,597.44 59.78% Intercourse funds increased in the period

Other current assets Other

current assets

12,165,307.83 37,786,874.66 -67.81% Redemption of financial products in the period

R&D expenses 17,189,388.65 13,346,410.47 28.79% Add new expenses in R&D in the period

Other non-current assets 191,872,846.36 121,743,152.36

-57.60% Account paid in advance for engineering

increased

Note payable and account

payable

5,001,709.67 6,668,789.67 -25.00% Account paid for engineering in the period

Account received in

advance

6,285,381.10 16,269,319.99 -61.37% The account received in advance for houses are

carry forward to revenue in the period

Taxes payable 133,095.73 921,967.58 -85.56% Paying taxes in the period

Long-term loans 172,210,000.00 101,710,000.00 69.31% Add new loans from the bank in the period

Treasury stock 28,826,485.70 19,718,613.55 46.19% Share repurchase in the period

Operation revenue 19,742,832.21 57,256,600.57 -65.52% Sales in the period declined

Operation cost 18,282,172.42 49,553,806.50 -63.11% Sales in the period declined

Taxes and surcharge 620,914.59 1,986,601.03 -68.74% Sales in the period declined

Sales expenses 5,339,242.26 4,902.12 108817.00% Sales agency fee increased in the period

Other income － 2,890,000.00 -100.00% Energy-saving subsidy received at last period

Net cash flow from

operating activities 18,406,542.28 13,873,390.65

32.68% Intercourse funds increased in the period

Net cash flow from

investment activities -70,777,980.84 -30,604,566.14

-131.27% Account paid for engineering in the period

Net cash flow from

financing activities

58,821,776.56 -210,900.00

27990.84% The current period is caused by bank loan.


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II. Analysis and explanation of significant events and their influence and solutions


Progress of implementation of shares repurchase

√Applicable □ Not applicable

On October 22, 2018, the company held the 4thsession of the seventh board of directors which reviewed and approved the Proposal

on the Repurchase of Company Shares by Centralized Bidding, and the second extraordinary shareholders meeting of 2018 held on

November 7, 2018 reviewed and approved the above proposal. On November 14, 2018, the company disclosed the Repurchase

Report on the Repurchase of Company Shares by Centralized Bidding (Announcement No.: 2018-062). The company implemented

the repurchase for the first time on December 6, 2018, and disclosed the Announcement on the First Repurchase of the Company’s

Shares (Announcement No.: 2018-070) on December 7, 2018. For details of the above, please refer to the relevant announcements

disclosed by the company on Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. The progress of the

company’s share repurchase was as follows:

Ended as the reporting period, the company repurchased the company’s shares of 28,307,783 shares through a stock repurchase

special security account by centralized bidding transactions, accounting for 4.01% of the company’s total share capital, of which the

highest transaction price was HK$1.18/share, the lowest transaction price was HK$1.09/share, and the total amount paid was

HK$32,095,614.32 (excluding transaction fees). Found more as:

Repurchased

date

Amount

repurchased

Ceiling price

(HK$)

Bottom price

(HK$)

Price repurchased

(HK$)

Ratio in total

share capital Announcement index

2018.12.6 6,586,658 1.14 1.11 7,449,626.48 0.93% Notice on the First

Repurchase of

Company’s Shares

(No.:2018-070)

2018.12.20 12,864,055 1.14 1.09 14,529,142.54 1.82% Notice on the

Repurchase of 2% of the

Company’s Shares

Capital (No.:2018-075)

2018.12.27 4,994,970 1.18 1.12 5,697,753.10 0.71% Notice on the


Company’s Shares


2018.12.28 532,100 1.14 1.14 606,594.00 0.08% Notice on the


Company’s Shares


2019.1.29 3,330,000 1,16 1.14 3,812,498.20 0.47%

Total 28,307,783 32,095,614.32 4.01%

Implementation progress of the reduction of repurchases shares by centralized bidding


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III. Commitments that theactual controller, shareholders, related party, acquirer and the

Company have fulfilled during the reporting period and have not yet fulfilled by the end of

reporting period


The Company has no commitments completed in Period and those without completed till end of the Period from actual controller,

shareholders, related parties, acquirer and company.

IV. Predict of the business performance from January to June 2019

Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be

loss or have great changes comparing with the same period of last year

□Applicable √Not applicable

V. Securities Investment


No security investment in Period.

VI. Derivative investment


No derivative investment in the Period.

VII. Registration form for receiving research, communication and interview in the report

period

√ Applicable □ Not applicable

Time Way Type Basic situation index of investigation

2019-02-28 Telephone communication Individual Operation of the Company, no materials

required

2019-03-20 Telephone communication Individual Current condition of the Company, no

materials required

VIII. Guarantee outside against the regulation


The Company had no guarantee outside against the regulation in the reporting period.


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IX. Non-operational fund occupation from controlling shareholders and its related party


The Company had no non-operational fund occupation form controlling shareholders and its related party in the period.


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Section IV. Financial statement

I. Financial statement

1. Consolidated balance sheet

Prepared by Dongfeng Sci-Tech Group CO., Ltd. 2019-03-31

In RMB

Item 2019-3-31 2018-12-31

Current assets:

Monetary fund 41,901,666.94 36,306,825.10

Settlement provisions

Capital lent

Tradable financial assets

Financial assets measured by fair

value and with variation reckoned into

current gains/losses

Derivative financial assets

Note receivable and account

receivable 5,075.00 11,171.25

Including: Notes receivable

Accounts receivable 5,075.00 11,171.25

Account paid in advance 60,848,603.32 61,099,009.67

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 13,722,717.25 8,588,597.44

Including: Interest receivable

Dividends receivable

Buying back the sale of financial

assets

Inventories 138,811,253.88 151,585,557.50

Contractual assets


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Assets held for sale

Non-current assets maturing within

one year

Other current assets 12,165,307.83 37,786,874.66

Total current assets 267,454,624.22 295,378,035.62

Non-current assets:

Loans and payments on behalf

Debt investment

Available-for-sale financial assets

Other debt investment

Held-to-maturity investments

Long-term receivables

Long-term equity investments

Investment in other equity instrument 16,331,037.08 16,331,037.08

Other non-current financial assets

Investment real estate

Fixed assets 16,312,218.88 17,302,279.65

Construction in progress 104,834,967.94 101,650,833.16

Productive biological assets 99,350.00 121,437.50

Oil and gas assets

Right-of-use assets

Intangible assets 56,173,561.53 56,686,960.59

R&D expenses 17,189,388.65 13,346,410.47

Goodwill 1,543,786.41 1,543,786.41

Long-term deferred expenses 270,219.80 266,884.56

Deferred income tax assets


Total non-current assets 404,627,376.65 328,992,781.78

Total assets 672,082,000.87 624,370,817.40

Current liabilities

Short-term loans

Loan from central bank

Capital borrowed

Tradable financial liability


13

Financial liability measured by fair



Derivative financial liability

Notes payable & account payable 5,001,709.67 6,668,789.67

Accounts received in advance 6,285,381.10 16,269,319.99

Selling financial asset of repurchase

Absorbing deposit and interbank

deposits

Agent buying and selling securities

Acting underwriting securities

Wage payable 995,877.37 981,089.59

Taxes payable 133,095.73 921,967.58

Other accounts payable 131,857,150.85 118,570,218.85

Including: Interest payable 193,333.41

Dividend payable

Handling fees and commissions

payable

Reinsurance payable

Contractual liability

Liability held for sale

Non-current liabilities due within one

year

Other current liabilities

Total current liabilities 144,273,214.72 143,411,385.68

Non-current liabilities:

Insurance contract reserve

Long-term loans 172,210,000.00 101,710,000.00

Bonds payable

Including: preferred stock

Perpetual capital securities

Lease liability

Long-term account payable

Long-term wage payable

Accrued liabilities


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Deferred income

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 172,210,000.00 101,710,000.00

Total liabilities 316,483,214.72 245,121,385.68

Owners’ equity:

Share capital 706,320,000.00 706,320,000.00

Other equity instrument



Capital public reserve 463,681,309.55 463,681,309.55

Less: Inventory shares 28,826,485.70 19,718,613.55

Other comprehensive income

Special reserve

Surplus reserve 76,791,550.17 76,791,550.17

Provision of general risk

Retained profit -889,653,308.04 -875,480,247.09

Total owner’s equity attributable to parent

Company 328,313,065.98 351,593,999.08

Minority interests 27,285,720.17 27,655,432.64

Total owner’s equity 355,598,786.15 379,249,431.72

Total liabilities and owner’s equity 672,082,000.87 624,370,817.40

Legal representative: Zhao Yongsheng Person in charger of accounting works: Zhao Yongsheng

Person in charger of accounting organ: Liu Fengguo

2. Balance Sheet of Parent Company

In RMB

Item 2019-3-31 2018-12-31

Current assets:

Monetary fund 23,831,488.90 28,933,135.09

Tradable financial assets

Financial assets measured by fair



Derivative financial assets


15

Note receivable and account

receivable

Including: Notes receivable

Accounts receivable


Other account receivable 17,240,379.87 80,991,042.06

Including: Interest receivable

Dividends receivable

Inventories 137,807,448.62 150,581,753.98

Contractual assets

Assets held for sale

Non-current assets maturing within

one year

Other current assets 164,259.65 24,163,071.63


Non-current assets:

Debt investment

Available-for-sale financial assets

Other debt investment

Held-to-maturity investments

Long-term receivables

Long-term equity investments 372,803,036.40 272,803,036.40

Investment in other equity instrument 16,331,037.08 16,331,037.08

Other non-current financial assets

Investment real estate

Fixed assets 1,477,639.92 1,551,517.36

Construction in progress

Productive biological assets

Oil and gas assets

Right-of-use assets

Intangible assets

R&D expenses

Goodwill

Long-term deferred expenses

Deferred income tax assets


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Other non-current assets 4,232,226.00


Total assets 634,586,008.42 636,175,784.33

Current liabilities

Short-term loans

Tradable financial liability

Financial liability measured by fair



Derivative financial liability

Notes payable & account payable 4,407,984.67 6,263,184.67

Accounts received in advance 5,926,513.33 14,427,450.03

Contractual liability

Wage payable 278,302.22 257,362.42

Taxes payable 10,587.15 125,482.71


Including: Interest payable

Dividend payable

Liability held for sale

Non-current liabilities due within one

year

Other current liabilities



Long-term loans

Bonds payable



Lease liability

Long-term account payable

Long-term wage payable

Accrued liabilities

Deferred income

Deferred income tax liabilities

Other non-current liabilities


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Total non-current liabilities


Owners’ equity:

Share capital 706,320,000.00 706,320,000.00

Other equity instrument





Other comprehensive income

Special reserve

Surplus reserve 76,791,550.17 76,791,550.17

Retained profit -1,047,896,116.53 -1,037,845,092.94


Total liabilities and owner’s equity 634,586,008.42 636,175,784.33

3. Consolidated Profit Statement

In RMB

Item Current Period Last Period

I. Total operation revenue 19,742,832.21 57,256,600.57

Including: operation revenue 19,742,832.21 57,256,600.57

Interest income

Insurance gained


income

II. Total operation cost 34,140,382.45 58,996,039.89

Including: operation cost 18,282,172.42 49,553,806.50

Interest expense


expenses

Cash surrender value

Net amount of expense of

compensation

Net amount of withdrawal of

insurance contract reserve


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Bonus expense of guarantee slip

Reinsurance expense

Taxes and surcharge 620,914.59 1,986,601.03

Sales expenses 5,339,242.26 4,902.12

Administration expenses 9,177,892.99 8,176,683.87

R&D expenses 691,311.31

Financial expenses 12,884.75 -725,953.63

Including: interest expenses

Interest income 10,188.51 735,508.45

Losses of devaluation of asset 344,913.75

Loss of credit impairment

Add: other income 2,890,000.00

Investment income (Loss is listed with

“-”) 87,723.37

Including: Investment income on

affiliated Company and joint venture

Exchange income (Loss is listed with

“-”)

Net exposure hedging income (Loss is

listed with “-”)

Changing income of fair value(Loss is

listed with “-”)

Income on disposal of assets (Loss is

listed with “-”) 467,465.69 530.00

III. Operating profit (Loss is listed with “-”) -14,171,310.80 1,151,090.68

Add: Non-operating income 6,245.92

Less: Non-operating expense 371,462.62 2,535.43

IV. Total Profit (Total loss is listed with “-”) -14,213,639.72 1,154,801.17

Less: Income tax expenses

V. Net profit (Net loss is listed with “-”) -14,542,773.42 1,154,801.17

(i) Classify by business continuity

1.continuous operating net profit (net loss

listed with ‘-”) -14,542,773.42 1,154,801.17

2.termination of net profit (net loss listed

with ‘-”)

(ii) Classify by ownership


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1.Net profit attributable to owner’s of

parent company -14,173,060.95 1,206,225.64

2.Minority shareholders’ gains and losses -369,712.47 -51,424.47

VI. Net after-tax of other comprehensive income

Net after-tax of other comprehensive income

attributable to owners of parent company

(I) Other comprehensive income items

which will not be reclassified subsequently to

profit of loss

1.Changes of the defined benefit

plans that re-measured

2.Other comprehensive income

under equity method that cannot be transfer to

gain/loss

3.Change of fair value of investment

in other equity instrument

4.Fair value change of enterprise's

credit risk

5.Other

(II) Other comprehensive income items

which will be reclassified subsequently to profit

or loss

1.Other comprehensive income

under equity method that can transfer to gain/loss

2.Change of fair value of other debt

investment

3.gain/loss of fair value changes for

available-for-sale financial assets

4.Amount of financial assets

re-classify to other comprehensive income

5.Gain/loss of held-to-maturity

investments that re-classify to available-for-sale

financial asset

6.Credit impairment provision for

other debt investment

7.Cash flow hedging reserve

8.Translation differences arising on

translation of foreign currency financial

statements


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9.Other

Net after-tax of other comprehensive income

attributable to minority shareholders

VII. Total comprehensive income -14,542,773.42 1,154,801.17

Total comprehensive income attributable to

owners of parent Company -14,173,060.95 1,206,225.64

Total comprehensive income attributable to

minority shareholders -369,712.47 -51,424.47

VIII. Earnings per share:

(i) Basic earnings per share -0.02 0.0020

(ii) Diluted earnings per share -0.02 0.0020

Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and

realized 0 Yuan at last period for combined party

Legal representative: Zhao Yongsheng Person in charger of accounting works: Zhao Yongsheng

Person in charger of accounting organ: Liu Fengguo

4. Profit Statement of Parent Company

In RMB


I. Operation revenue 17,826,946.69 55,338,425.07

Less: Operation cost 15,694,747.22 46,849,466.25

Taxes and surcharge 354,809.07 1,748,995.54

Sales expenses 5,332,957.71

Administration expenses 5,862,736.72 2,734,624.92

R&D expenses

Financial expenses 6,997.78 351.05

Including: interest

expenses

Interest income 3575.46 4871.33

Losses of devaluation of asset 448,682.61

Loss of credit impairment

Add: other income 2,890,000.00

Investment income (Loss is

listed with “-”) 54,665.83

Including: Investment income

on affiliated Company and joint venture


21

Net exposure hedging income

(Loss is listed with “-”)

Changing income of fair

value(Loss is listed with “-”)

Income on disposal of assets

(Loss is listed with “-”)

II. Operating profit (Loss is listed with

“-”) -9,819,318.59 6,894,987.31

Add: Non-operating income

Less: Non-operating expense 231,705.00 2,301.69

III. Total Profit (Loss is listed with “-”) -10,051,023.59 6,892,685.62

Less: Income tax expenses

IV. Net profit (Net loss is listed with

“-”) -10,051,023.59 6,892,685.62

(i) continuous operating net profit

(net loss listed with ‘-”) -10,051,023.59 6,892,685.62

(ii) termination of net profit (net

loss listed with ‘-”)

V. Net after-tax of other comprehensive

income

(I) Other comprehensive income

items which will not be reclassified

subsequently to profit of loss

1.Changes of the defined

benefit plans that re-measured

2.Other comprehensive

income under equity method that cannot

be transfer to gain/loss

3.Change of fair value of

investment in other equity instrument

4.Fair value change of

enterprise's credit risk

5.Other

(II) Other comprehensive income

items which will be reclassified

subsequently to profit or loss

1.Other comprehensive

income under equity method that can


22

transfer to gain/loss

2.Change of fair value of

other debt investment

3.gain/loss of fair value

changes for available-for-sale financial

assets

4.Amount of financial

assets re-classify to other

comprehensive income

5.Gain/loss of

held-to-maturity investments that

re-classify to available-for-sale financial

asset

6.Credit impairment

provision for other debt investment

7.Cash flow hedging

reserve

8.Translation differences

arising on translation of foreign

currency financial statements

9.Other

VI. Total comprehensive income -10,051,023.59 6,892,685.62

VII. Earnings per share:

(i) Basic earnings per share

(ii) Diluted earnings per share

5. Consolidated Cash Flow Statement

In RMB


I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor

services

4,746,841.46 28,320,521.54

Net increase of customer deposit

and interbank deposit

Net increase of loan from central

bank


23

Net increase of capital borrowed

from other financial institution

Cash received from original

insurance contract fee

Net cash received from

reinsurance business

Net increase of insured savings

and investment

Net increase of amount from

disposal financial assets that measured

by fair value and with variation

reckoned into current gains/losses

Cash received from interest,

commission charge and commission

Net increase of capital borrowed

Net increase of returned business

capital

Net cash received by agents in

sale and purchase of securities

Write-back of tax received 19,411.90

Other cash received concerning


Subtotal of cash inflow arising from


Cash paid for purchasing

commodities and receiving labor

service

5,792,763.59 1,985,330.39

Net increase of customer loans

and advances

Net increase of deposits in central

bank and interbank

Cash paid for original insurance

contract compensation

Net increase of financial assets

held for transaction purposes

Net increase of capital lent

Cash paid for interest, commission

charge and commission


24

Cash paid for bonus of guarantee

slip

Cash paid to/for staff and workers 4,361,376.36 6,411,756.37

Taxes paid 1,921,998.77 18,106,251.46

Other cash paid concerning


Subtotal of cash outflow arising from


Net cash flows arising from operating

activities 18,406,542.28 13,873,390.65

II. Cash flows arising from investing

activities:

Cash received from recovering

investment 28,454,665.83 8,000,000.00

Cash received from investment

income 87,723.37

Net cash received from disposal of

fixed, intangible and other long-term

assets

488,370.00 20,000,000.00


subsidiaries and other units


investing activities

Subtotal of cash inflow from investing

activities 29,030,759.20 28,000,000.00

Cash paid for purchasing fixed,

intangible and other long-term assets 73,208,740.04 65,217,490.51

Cash paid for investment 26,600,000.00

Net increase of mortgaged loans


subsidiaries and other units obtained -6,612,924.37



Subtotal of cash outflow from investing

activities 99,808,740.04 58,604,566.14

Net cash flows arising from investing

activities -70,777,980.84 -30,604,566.14

III. Cash flows arising from financing


25

activities

Cash received from absorbing

investment

Including: Cash received from

absorbing minority shareholders’

investment by subsidiaries

Cash received from loans 72,500,000.00

Cash received from issuing bonds


financing activities

Subtotal of cash inflow from financing

activities 72,500,000.00

Cash paid for settling debts 2,000,000.00

Cash paid for dividend and profit

distributing or interest paying 2,570,351.29

Including: Dividend and profit of

minority shareholder paid by

subsidiaries


financing activities 9,107,872.15 210,900.00

Subtotal of cash outflow from

financing activities 13,678,223.44 210,900.00

Net cash flows arising from financing

activities 58,821,776.56 -210,900.00

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

V. Net increase of cash and cash

equivalents 6,450,338.00 -16,942,075.49

Add: Balance of cash and cash

equivalents at the period -begin 33,512,916.99 68,107,388.69

VI. Balance of cash and cash

equivalents at the period -end 39,963,254.99 51,165,313.20

6. Cash Flow Statement of Parent Company

In RMB


I. Cash flows arising from operating


26

activities:

Cash received from selling

commodities and providing labor

services

4,746,841.46 27,789,590.54

Write-back of tax received 19,411.90


operating activities 58,801,034.43

Subtotal of cash inflow arising from


Cash paid for purchasing

commodities and receiving labor

service

6,569,615.87

Cash paid to/for staff and workers 1,939,421.95

Taxes paid 4,882,099.67



Subtotal of cash outflow arising from


Net cash flows arising from operating


II. Cash flows arising from investing

activities:

Cash received from recovering

investment

Cash received from investment

income


fixed, intangible and other long-term

assets

56,360,440.60


subsidiaries and other units 61,107,282.06


investing activities 5,792,763.59

Subtotal of cash inflow from investing

activities

Cash paid for purchasing fixed,

intangible and other long-term assets

Cash paid for investment


27


subsidiaries and other units obtained



Subtotal of cash outflow from investing

activities

Net cash flows arising from investing

activities

III. Cash flows arising from financing


Cash received from absorbing

investment 1,852,690.64

Cash received from loans 30,624,601.06

Cash received from issuing bonds 42,700,739.78


financing activities 18,406,542.28

Subtotal of cash inflow from financing

activities

Cash paid for settling debts 28,454,665.83

Cash paid for dividend and profit

distributing or interest paying 87,723.37


financing activities 488,370.00 210,900.00

Subtotal of cash outflow from

financing activities 210,900.00

Net cash flows arising from financing

activities -210,900.00

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate 29,030,759.20

V. Net increase of cash and cash

equivalents 73,208,740.04 4,646,041.76

Add: Balance of cash and cash

equivalents at the period -begin 26,600,000.00 5,394,019.29

VI. Balance of cash and cash

equivalents at the period -end 10,040,061.05


28

II. Explanation on financial statement adjustment

1. Financial statement adjustment at the beginning of the first year when implementation of new financial

instrument rules, new revenue rules and new leasing rules

√ Applicable □Not applicable

Consolidate balance sheet

In RMB

Item 2018-12-31 2019-1-1 Adjustment

Current assets:

Monetary fund 36,306,825.10 36,306,825.10

Note receivable and

account receivable 11,171.25 11,171.25

Accounts

receivable 11,171.25 11,171.25


Other account

receivable 8,588,597.44 8,588,597.44

Inventories 151,585,557.50 151,585,557.50



Non-current assets:

Available-for-sale

financial assets Not applicable -16,331,037.08

Investment in other

equity instrument Not applicable 16,331,037.08 16,331,037.08

Fixed assets 17,302,279.65 17,302,279.65

Construction in progress 101,650,833.16 101,650,833.16

Productive biological

assets 121,437.50 121,437.50

Intangible assets 56,686,960.59 56,686,960.59

R&D expenses 13,346,410.47 13,346,410.47

Goodwill 1,543,786.41 1,543,786.41

Long-term deferred

expenses 266,884.56 266,884.56




29

Total assets 624,370,817.40 624,370,817.40

Current liabilities

Notes payable &

account payable 6,668,789.67 6,668,789.67

Accounts received in

advance 16,269,319.99 16,269,319.99

Wage payable 981,089.59 981,089.59

Taxes payable 921,967.58 921,967.58




Long-term loans 101,710,000.00 101,710,000.00

Total non-current liabilities 101,710,000.00 101,710,000.00


Owners’ equity:

Share capital 706,320,000.00 706,320,000.00



Surplus reserve 76,791,550.17 76,791,550.17

Retained profit -875,480,247.09 -875,480,247.09

Total owner’s equity

attributable to parent

Company

351,593,999.08 351,593,999.08

Minority interests 27,655,432.64 27,655,432.64


Total liabilities and owner’s

equity 624,370,817.40 624,370,817.40

Statement of adjustment

Balance sheet of parent company

In RMB

Item 2018-12-31 2019-1-1 Adjustment

Current assets:

Monetary fund 28,933,135.09 28,933,135.09


Other account

receivable 80,991,042.06 80,991,042.06


30

Inventories 150,581,753.98 150,581,753.98



Non-current assets:

Available-for-sale

financial assets Not applicable -16,331,037.08

Long-term equity

investments 272,803,036.40 272,803,036.40

Investment in other

equity instrument Not applicable 16,331,037.08 16,331,037.08

Fixed assets 1,551,517.36 1,551,517.36


Total assets 636,175,784.33 636,175,784.33

Current liabilities

Notes payable &

account payable 6,263,184.67 6,263,184.67

Accounts received in

advance 14,427,450.03 14,427,450.03

Wage payable 257,362.42 257,362.42

Taxes payable 125,482.71 125,482.71





Owners’ equity:

Share capital 706,320,000.00 706,320,000.00



Surplus reserve 76,791,550.17 76,791,550.17

Retained profit -1,037,845,092.94 -1,037,845,092.94


Total liabilities and owner’s

equity 636,175,784.33 636,175,784.33

Statement of adjustment

In 2017, the Ministry of Finance issued and revised the “Accounting Standard for Business Enterprise No.22- Recognition of

financial instrument and measurement”(CK [2017] No.7), “Accounting Standard for Business Enterprise No.23- Transfer of


31

Financial assets”(CK[2017] No.8, “Accounting Standard for Business Enterprise No.24- Hedge Accounting (CK [2017] No.9” and

“Accounting Standard for Business Enterprise No.37- Presentation of financial instruments (CK[2017] No.14”, according relevant

requirement of the Notice, the Company implementing the above mentioned new financial accounting rules since 1 Jan. 2019. The

rules stipulated that on the date of implementation of the Rules, financial instruments are need to be re-classified and measurement in

line with the regulations, no adjustment is required for inconsistent data of financial statements involving prior comparison with the

requirement of these standards. The impacts arising from the changes of accounting policy, the amount of Available-for-sale

financial assets and Investment in other equity instrument on beginning of 2019 should be adjusted.

2. Retrospective adjustment of the comparative data for initial implementation of new financial instrument

rules and new leasing rules


III. Audit report

Whether the first quarterly report had been audited or not

□ Yes √ No

The first quarterly report of the Company had not been audited.

dongfeng sci-tech group co., ltd. · board of directors and the supervisory committee of dongfeng...

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