Nanjing Panda Electronics : SUMMARY OF 2019 INTERIM REPORT

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.

SUMMARY OF 2019 INTERIM REPORT

1. IMPORTANT NOTICE
2. 1. The summary of the results of Nanjing Panda Electronics Company Limited (the "Company") and its subsidiaries (the "Group") for the six months ended 30 June 2019 (the "Reporting Period") is set out below. The financial statements contained in this report are unaudited. The summary of 2019 Interim Report is based on the full-length 2019 Interim Report. Investors who wish to know more details should carefully read the full text of the Interim Report simultaneously posted on the websites designated by the China Securities Regulatory Commission ("CSRC"), such as the website of the Shanghai Stock Exchange.
   2. The board of directors, the supervisory committee, the directors, supervisors and senior management of the Company confirm that the information in this interim report is true, accurate and complete and does not contain any false representation, misleading statement or material omission, and jointly and severally accept full responsibility for the contents herein.
   3. All Directors of the Company attended the Board meeting.
   4. This interim report of the Company is unaudited.
   5. The Company would not make any profit distribution or capitalization of capital reserve for the first half of 2019.

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1. BASIC INFORMATION ABOUT THE COMPANY 2.1 Company profile

	Overview of stock
				Stock
	The stock exchange on	Stock		abbreviation
Class of stock	which the shares are listed	abbreviation	Stock code	before change
A Share(s)	Shanghai Stock Exchange	NPEC	600775	N/A
H Share(s)	The Stock Exchange of	NPEC	00553	N/A
	Hong Kong Limited
	(the "Hong Kong Stock
	Exchange")

Contact persons and		Representative of
contact information	Secretary to the Board	securities affairs
Name	Wang Dongdong	Wang Dongdong
Telephone	(8625) 8480 1144	(8625) 8480 1144
Facsimile	(8625) 8482 0729	(8625) 8482 0729
E-mail	[e-mail]	[e-mail]

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Interim results

The board of directors (the "Board") of the Company hereby announces the unaudited interim results of the Group for the Reporting Period prepared in accordance with the PRC Accounting Standards for Business Enterprises.

As the Company adopts merely the PRC Accounting Standards for Business Enterprises for preparing its financial statements from 2016, the relevant financial data for the first half of 2019 have been presented in accordance with the PRC Accounting Standards for Business Enterprises in this announcement.

2.2 Major financial data of the Company (Unaudited)

		Unit: Yuan Currency: RMB
	At the end of the	At the end of
	Reporting Period	last year
	(30 June	(31 December	Change from the
	2019)	2018)	end of last year
			(%)
Total assets	6,277,346,877.50	6,184,619,023.98	1.50
Net assets attributable to shareholders
of the Company	3,437,711,434.85	3,468,424,299.40	-0.89
		Corresponding
	Reporting	period of	Change from
	Period	last year	corresponding
	(January to	(January to	period of
	June 2019)	June 2018)	last year
			(%)
Net cash flow from operating activities	-302,748,167.59	-132,738,177.15	N/A
Operating income	2,129,345,776.54	1,993,629,769.74	6.81
Net profit attributable to shareholders of
the Company	42,389,523.73	51,019,460.71	-16.91
Net profit attributable to shareholders
of the Company after deduction of
extraordinary items	30,861,450.97	42,239,537.95	-26.94
Weighted average return on net			Decreased by
assets (%)			0.29 percentage
	1.22	1.51	point
Basic earnings per share (RMB/share)	0.0464	0.0558	-16.91
Diluted earnings per share (RMB/share)	0.0464	0.0558	-16.91

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2.3 Total number of shareholders, shareholdings of the top ten shareholders and top ten holders of tradable shares (or holders of shares not subject to trading moratorium) as at the end of the Reporting Period

				Unit: shares
Total number of shareholders as at the end of
the Reporting Period (account)				94,745
	Shareholdings of top ten shareholders	Number
				Number
				of shares
			Number	held subject	of shares
	Nature of	Percentage of	of shares	to trading	pledged or
Name of shareholders	shareholders	shareholding	held	moratorium	frozen
		(%)
HKSCC (Nominee) Limited	Overseas legal	26.57	242,800,218	0	Unknown
	person
Panda Electronics Group Limited	State-owned	23.05	210,661,444	0	Unknown
("PEGL")	legal person
China Huarong Asset Management Co.,	State-owned	7.17	65,517,891	0	Unknown
Ltd.	legal person
Nanjing Electronics Information	State-owned	6.93	63,302,611	0	Unknown
Industrial Corporation ("NEIIC")	legal person
Zhang Xiaofeng(張曉峰)	Domestic natural	0.20	1,845,163	0	Unknown
Cheng Lijun(程利軍)	person
Domestic	0.17	1,569,900	0	Unknown
Qi Liqin（齊麗琴）	natural person
Domestic	0.11	1,015,667	0	Unknown
Lu Weirong(盧偉榮)	natural person
Domestic	0.11	1,000,000	0	Unknown
Wang Ping（王萍）	natural person
Domestic	0.10	950,000	0	Unknown
Duan Yijie（段義傑）	natural person
Domestic	0.10	927,274	0	Unknown

natural person

Description on connected relationship or party acting in concert among the aforesaid shareholders

NEIIC holds 100% equity interests of PEGL, the controlling shareholder of the Company. NEIIC holds, directly and through asset management plans, 49,534,611 A shares and 13,768,000 H shares of the Company, representing 6.93% of the total number of shares. NEIIC indirectly holds 210,661,444 A shares of the Company through PEGL, representing 23.05% of the total number of shares. In total, NEIIC holds 29.98% of the shares of the Company. Save as the above, the Company is not aware of any connected relationship or party acting in concert among other shareholders.

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Notes:

HKSCC (Nominees) Limited held 242,800,218 shares (including 214,397,470 H shares and 1,402,748 A shares) of the Company on behalf of several clients, representing 26.57% of the issued share capital of the Company. The Company is not aware of any individual client holding more than 5% of the issued share capital of the Company.

2.4 Particulars of the total number of holders of preferred shares and the top 10 holders of preferred shares as at the end of the Reporting Period

Applicable ✓ N/A

2.5 Change in the controlling shareholder and the de facto controller

Applicable ✓ N/A

2.6 Outstanding and overdue payment of the Company's debts

Applicable ✓ N/A

1. MANAGEMENT DISCUSSION AND ANALYSIS
   3.1 The discussion and analysis on the operation
   In the first half of 2019, the Company strived to deepen structural reform, promote mechanism innovation and boost industry transformation and upgrading in response to the actual business development and external environment. In addition, the Company was committed to fully implementing development plan. Moreover, the Company believed in strengthening lean management and improving quality and efficiency. As a result, the Company accomplished the operating targets and key tasks assigned by the Board, and maintained a sound momentum of development. During the Reporting Period, the Company recorded operating income of RMB2,129,345,800, total profit of RMB90,680,600 and net profit attributable to shareholders of the parent company of RMB42,389,500.

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3.1.1Analysis of principal operations

1. Analysis of changes in relevant items in the financial statements (Unaudited)

	Unit: Yuan Currency: RMB
		Amount for the
		corresponding
	Amount for	period of
Item	the Period	last year	Change
			(%)
Operating income	2,129,345,776.54	1,993,629,769.74	6.81
Operating costs	1,823,553,320.49	1,703,793,649.19	7.03
Cost of sales	21,892,592.48	24,842,746.83	-11.88
Administrative expenses	105,415,293.63	99,945,852.85	5.47
Financial expenses	-195,797.60	370,226.01	-152.89
R&D expenses	103,493,120.42	103,166,097.03	0.32
Net cash flows from operating
activities	-302,748,167.59	-132,738,177.15	N/A
Net cash flows from investment
activities	-167,394,063.22	-19,187,056.26	N/A
Net cash flows from financing
activities	-27,932,923.84	87,423,327.93	-131.95
Interest expenses	2,433,504.47	1,775,338.83	37.07
Other income	5,766,281.17	1,268,248.20	354.67
Gain from change in fair value	2,975,260.27	0	N/A
Credit impairment losses	-4,102,573.57	-1,018,592.09	N/A
Assets impairment losses	-13,210,343.27	238,867.43	-5,630.41
Gains on disposal of assets	190,885.76	-178,452.31	N/A
Non-operating expenses	305,589.45	577,222.19	-47.06
Income tax expenses	20,907,362.66	14,162,182.96	47.63

Reasons for the changes:

1. Operating income: Mainly due to the period-on-period increase in the income from electronic manufacturing services during the period.
2. Operating costs: Mainly due to the increase in the income and corresponding increase in costs from electronic manufacturing services business during the period
3. Cost of sales: Mainly due to the decrease in advertising and exhibition expenses during the period

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1. Administrative expenses: Mainly due to increase in salary and wages expenses during the period.
2. Financial expenses: Mainly due to the decrease in exchange losses during the period as a result of the RMB exchange rate changes;
3. R&D expenses: remains unchanged during the Reporting Period;
4. Net cash flows from operating activities: Mainly due to cash paid for purchasing of goods during the period;
5. Net cash flows from investment activities: Mainly due to expiration of wealth management products purchased from banks;
6. Net cash flows from financing activities: Mainly due to repayment of short-term bank loans during the period;
7. Interest expenses: Mainly due to the increase in interest expenses paid for short-term bank loans during the period;
8. Other income: Mainly due to the period-on-period increase in government subsidy relating to operations activities;
9. Gains on changes in fair value: Gains from the change in fair value of transactional financial assets during the period;
10. Credit impairment losses: Mainly due to provision for bad debts of financial assets during the period;
11. Assets impairment losses: Mainly due to provision for impairment of long-term equity investments during the period;
12. Gains on disposal of assets: Mainly due to the increase in gain from the disposal of non-current assets during the period;
13. Non-operatingexpenses: Mainly due to the decrease in current write-off losses recognized during the period;
14. Income tax expenses: Mainly due to the increase in current income tax during the period.

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1. Analysis of assets and liabilities

				Unit: Yuan	Currency: RMB
					Change in
					the amount
		Amount at		Amount at	at the end of
			the end of the	the period as
	Amount at the	the end of the		previous period	compared to
	period as a	Amount at the	as a percentage	the amount at
Item	end of the	percentage of	end of the	of the total	the end of the
period	the total assets	previous period	assets	previous period	Remarks
		(%)		(%)	(%)
Monetary funds	985,801,017.17	15.70	1,448,751,802.35	23.43	-31.96	Mainly due to the increase in
						principal of bank wealth
						management products
						outstanding, and the payment
						for goods purchased during
	492,975,260.27	7.85				the period
Transactional	360,000,000.00	5.82	36.94	Due to the changes in principal
financial assets						and fair value of bank wealth
						management products due at
	257,096,422.53	4.10				the end of the period
Prepayments	181,267,525.19	2.93	41.83	Mainly due to the increase in
						prepayments of purchase
	524,347,156.71	8.35				amounts and project funds
Contract assets	360,753,744.24	5.83	45.35	Mainly due to the increase in the
						right to receive consideration
						upon the transfer of goods to
	4,878,959.38	0.08				customers during the period
Right-of-use	0	0	N/A	Due to the recognition of
assets						eligible leased equipment as
						right-of-use assets to comply
Long-term	2,032,859.02	0.03				with new lease standards
1,289,730.68	0.02	57.62	Mainly due to the increase in
deferred						long-term deferred items
expenses	50,000,000.00	0.80				during the period
Short-term loans	95,000,000.00	1.54	-47.37	Due to the partial repayment of
						short-term bank loans during
	259,142,824.49	4.13				the period
Notes payables	187,360,370.61	3.03	38.31	Mainly due to the increase in
						the purchase of goods settled
	1,336,367.67	0.02				by notes during the period
Receipts in	2,051,740.10	0.03	-34.87	Mainly due to the decrease in
advance						service fees, etc. received in
	20,998,899.48	0.33				advance during the period
Staff salaries	34,316,099.14	0.55	-38.81	Mainly due to salaries and
payable						related cost paid during the
	197,072,263.29	3.14				period
Other payables	101,554,174.51	1.64	94.06	Mainly due to the distribution of
						ordinary share dividends in
	4,975,397.42	0.08				the period
Lease liabilities	0	0	N/A	Due to the recognition of
						eligible leased equipment as
						right-of-use assets to comply
						with new lease standards, and
						the recognition of present
						value of the outstanding lease
	0	0				payment as lease liabilities
Accrued liabilities	2,900,000.00	0.05	-100.00	Due to the full payment due for

litigation matters during the period

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3.2 Analysis of investments

3.2.1 Overall analysis of equity investment

In the first half of 2019, the Company cautiously and normatively made investments in fixed assets and relevant projects in accordance with the capital expenditure budget and actual operating conditions.

3.2.2 Analysis of major subsidiaries and investee companies

1. Information of major subsidiaries

Subsidiary	Major products or services
Nanjing Panda	Manufacture and sale of automatic
Electronics Equipment	transmission equipment and
Co., Ltd.	industrial robots
Nanjing Panda	Production and sale of AFC and ACC
Information Industry	systems and equipment of railway
Co., Ltd.	transit, building intellectualization
	and system integration
Nanjing Panda Electronic	EMS services
Manufacture Co., Ltd.
Nanjing Panda	Manufacture and sale of mobile
Communications	communication, digital
Technology Co., Ltd.	communication and network
	communication systems and
	products
Nanjing Panda Xinxing	Property and catering services
Industrial Co., Ltd.
Nanjing Panda	Manufacturing of general purpose
Electronic Technology	equipment, software development,
Development Company	and property management
Limited
Shenzhen Jinghua	Research and development,
Electronics Co., Ltd.	manufacturing and sales of
	communication equipment and
	digital products

	Unit: 0'000	Currency: RMB
	30 June 2019		January to June 2019
Registered			Operating
capital	Total assets	Net assets	income	Net profit
19,000	104,968.50	36,484.94	41,850.18	1,021.10
USD	140,080.39	40,925.67	52,847.16	1,946.03
3,194.6435
USD2,000	108,750.19	47,066.78	75,997.42	3,165.79
10,000	22,408.69	16,298.88	3,681.20	-194.13

2,000	6,398.58	4,152.25	7,088.61	194.22
70,000	66,417.62	60,429.47	719.85	-1,300.07

11,507

52,290.78

35,022.49

33,484.74

4,308.40

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1. Information of major investee companies (January to June 2019) Unit: 0'000 Currency: RMB

				Investment
			Equity	Income
			interests	received
	Operating		held by the	by the
Name of investee company	income	Net Profit	Company	Company
Nanjing Ericsson Panda
Communication Co., Ltd.	491,969.99	9,116.10	27.00%	2,461.35

The Company holds 20% equity interest in Beijing SE Putian Mobile Communication Co., Ltd. Beijing SE Putian Mobile Communication Co., Ltd. announced at its board meeting held on 28 March 2019, it will work on preparing for the liquidation and the Company will make provisions for the dividend payable and the long-term equity investment impairment according to the relevant liquidation memorandum documents for the period. During the Reporting Period, Beijing SE Putian Mobile Communication Co., Ltd. record operating revenue of RMB282,965,700, net profit of RMB-306,063,800, which had no impact on the profit and loss of the Company.

3.3 Plan for Profit Distribution or Capitalization of Capital Reserve

3.3.1 Plans for profit distribution and capitalization of capital reserve for the first half year

The Company will not make any profit distribution or convert any capital reserve into share capital for the first half of 2019.

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3.3.2 Implementation of or adjustment to the profit distribution plan during the Reporting Period

The resolution in relation to the profit distribution plan for the year 2018 was considered and approved at the fourth meeting of the ninth session of the Board of the Company and the 2018 annual general meeting of the Company, pursuant to which, a cash dividend of RMB0.80 (tax inclusive) for every ten shares was distributed to all the shareholders on the basis of a total share capital of 913,838,529 shares as at 31 December 2018, with the total cash dividend distributed amounting to RMB73,107,082.32 and the remaining profits to be carried forward to next year. The Company would not make any distribution of capital reserve. As at the date of this report, the profit appropriation plan had been duly implemented. For details, please refer to the announcements published by the Company in China Securities Journal and Shanghai Securities News and on the website of Shanghai Stock Exchange on 29 March 2019, 29 June 2019 and 8 July 2019 and on the website of the Hong Kong Stock Exchange on 28 March 2019, 28 June 2019 and 5 July 2019, respectively.

3.4 Other matters

3.4.1 Liquidity of capital

As shown in the consolidated financial statements of the Company prepared under the PRC Accounting Standards for Business Enterprises, as at 30 June 2019, the Company's gearing ratio (the ratio of total liabilities to total assets) was 41.24%; current liabilities amounted to RMB2,556 million; liquidity ratio was 1.83; quick ratio was 1.39; bank deposits and cash amounted to RMB793 million; and short-term bank and other loans amounted to RMB50 million.

During the Reporting Period, the benchmark interest rate on 1-year RMB loans from financial institutions was 4.35%.

3.4.2 Purchase, sale or redemption of the Company's listed shares

During the Reporting Period, the Group did not purchase, sell or redeem any of the Company's listed shares.

3.4.3 Liability insurance for Directors, supervisors and senior management

During the Reporting Period, the Company purchased liability insurance for its Directors, supervisors and senior management in compliance with relevant requirements under the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (the "Listing Rules").

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3.4.4 Corporate Governance

During the Reporting Period, the Company has complied with the provisions under the Corporate Governance Code as set out in Appendix 14 of the Listing Rules.

3.4.5 Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers ("Model Code")

During the Reporting Period, the Company adopted the Model Code as set out in Appendix 10 to the Listing Rules. Having made specific enquiries to the Directors, all Directors have confirmed that they complied with the Model Code during the Reporting Period.

3.4.6 Events after the Reporting Period

As at the date of this announcement, the Group did not record any material events after the Reporting Period.

3.5 Audit committee

The audit committee and the management of the Company have reviewed the accounting principles and accounting standards and methods adopted by the Company, discussed the matters relating to internal control and reviewed the interim results for the Reporting Period. The audit committee is of the opinion that the relevant financial report complies with the applicable accounting standards and laws and that adequate disclosure has been made.

The audit committee convened a meeting on 28 March 2019 to review 2018 financial report of the Company and the summary report on audit work in 2018 performed by BDO China Shu Lun Pan Certified Public Accountants LLP and agreed to submit the same to the Board for review. The appointment of BDO China Shu Lun Pan Certified Public Accountants LLP as the Company's international, domestic and internal control auditors for 2019 was agreed at the meeting and relevant proposal was submitted to the Board for consideration.

Having reviewed the unaudited financial report of the Company for the six months ended 30 June 2019, the audit committee is of the opinion that the financial report complies with the applicable accounting standards and laws and that adequate disclosure has been made.

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1. Appointment and Removal of Auditors
   At the fourth meeting of the ninth session of the Board, the resolution in relation to the appointment of the auditors for 2019 was considered and approved, whereby it was proposed that BDO China Shu Lun Pan Certified Public Accountants LLP be re-appointed as the Company's international auditor, PRC auditor and internal control auditor for 2019 and that their remuneration be determined within the limit of RMB2.10 million and it was agreed that the same be submitted to the 2018 annual general meeting of the Company for shareholders' consideration.
   The 2018 annual general meeting of the Company considered and approved the reappointment of BDO China Shu Lun Pan Certified Public Accountants LLP as the Company's international auditor, PRC auditor and internal control auditor for 2019, and authorized the Board to determine their remuneration within the limit of RMB2.10 million.
   For details, please refer to the relevant announcements of the Company published in China Securities Journal and Shanghai Securities News and on the website of Shanghai Stock Exchange on 29 March 2019 and 29 June 2019 and on the website of the Hong Kong Stock Exchange on 28 March 2019 and 28 June 2019.
2. Changes in accounting policies, accounting estimates and accounting methods compared with the previous accounting period, reasons thereof and their impact.
3. 1. The resolution on the Change in Some of the Company's Accounting Policies was considered and approved at the fifth meeting of the ninth session of the Board of the Company on 26 April 2019. In 2018, the Ministry of Finance revised the Accounting Standards for Business Enterprises No. 21 - Leases, the Company being an enterprise concurrently listed on domestic and foreign stock exchanges, the Company shall adopt such accounting standard with effect from 1 January 2019. This change in accounting policies is a reasonable change in accordance with relevant documents of the Ministry of Finance, and is in compliance with Accounting Standards and relevant requirements, and actual conditions . The decision process is in compliance with the relevant laws and regulations and the Articles of Association. The changes in accounting policies will affect the items of statement of the Company but cause no material impact the current financial conditions and operating results of the Company. For details of the change in accounting policies, please refer to the Announcement of Nanjing Panda on Change in Some of Accounting Policies (Lin 2019-029)

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published on the China Securities Journal, Shanghai Securities News and the website of the Shanghai Stock Exchange on 29 April 2019 and the related announcement published on the website of the Hong Kong Stock Exchange on 26 April 2019.

1. The resolution on the change in some of the Company's accounting policies was considered and approved at the tenth meeting of the ninth session of the Board of the Company on 29 August 2019. On 30 April 2019, the Ministry of Finance issued the Notice on Revising and
   Issuing the Format of Financial Statements of General Enterprises for 2019 《( 關於修訂印發2019年度一般企業財務報表格式的通知》) (Cai Kuai [2019] No. 6), and has revised the format of financial statements for general enterprises. In accordance with the requirements of the above notice, the Company changed relevant accounting policies. The change in accounting policies was made by the Company on reasonable basis according to the relevant documents of the Ministry of Finance, which was in line with the accounting the relevant regulations and the actual situation of the Company. The decision-making process for this change in accounting policies is in compliance with relevant laws and regulations and the Articles of Association. For details, please refer to the Announcement of Nanjing Panda on Amendment of Some of Accounting Policies (Lin 2019-[056]) published by the Company on the China Securities Journal, Shanghai Securities News and the website of the Shanghai Stock Exchange on 30 August 2019 and the related announcement published on the website of the Hong Kong Stock Exchange on 29 August 2019.

3.8 In case retrospective restatement is required for major accounting errors during the Reporting Period, the Company shall give explanations on the situation, amount affected, reasons thereof and its impact.

N/A

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IV. FINANCIAL REPORT (PREPARED IN ACCORDANCE WITH THE PRC ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES)

Consolidated Balance Sheet

30 June 2019

(Expressed in RMB, unless otherwise stated)

			Balance
	Closing	at the end
ASSETS	balance	of last year
Current assets:
Cash and cash equivalents	985,801,017.17		1,448,751,802.35
Settlement provisions
Placements with banks and
other financial institutions
Financial assets held for trading	492,975,260.27		360,000,000.00
Derivative financial assets
Notes receivable	305,140,698.53		268,269,716.38
Accounts receivable	1,144,041,933.70		1,003,441,127.48
Financing receivables
Advance to suppliers	257,096,422.53		181,267,525.19
Premiums receivable
Reinsurance receivable
Reinsurance contract reserve receivable
Other receivables	73,884,455.42		88,573,078.94
Financial assets held under resale agreements
Inventories	878,435,686.79		867,808,744.86
Contract assets	524,347,156.71		360,753,744.24
Held-for-sale assets
Non-current assets due within one year
Other current assets	27,359,732.35		34,724,089.13
Total current assets	4,689,082,363.47	4,613,589,828.57

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Consolidated Balance Sheet (Continued)

30 June 2019

(Expressed in RMB, unless otherwise stated)

			Balance
	Closing	at the end
ASSETS	balance	of last year
Non-current assets
Loans and advances to customers
Debenture investments
Other debenture investments
Long-term receivables
Long-term equity investments	303,462,391.56	293,775,084.76
Other equity instruments investments	3,911,610.55	3,905,351.83
Other non-current financial assets
Investment properties	16,158,418.62	19,461,979.00
Fixed assets	855,413,462.19	826,049,821.47
Construction in progress	280,476,946.23	304,808,394.92
Biological assets for production
Fuel assets
Right-of-use assets	4,878,959.38
Intangible assets	109,497,944.57	109,121,966.50
Development expenses
Goodwill
Long-term deferred expense	2,032,859.02	1,289,730.68
Deferred income tax assets	12,431,921.91	12,616,866.25
Other non-current assets
Total non-current assets	1,588,264,514.03		1,571,029,195.41
Total assets	6,277,346,877.50		6,184,619,023.98

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Consolidated Balance Sheet (Continued)

30 June 2019

(Expressed in RMB, unless otherwise stated)

			Balance
	Closing		at the end
Liabilities and owners' equity	balance		of last year
Current liabilities:
Short-term borrowings	50,000,000.00	95,000,000.00
Borrowings from central bank
Placements from banks and other financial
institutions
Financial liabilities held for trading
Derivative financial liabilities
Note payables	259,142,824.49	187,360,370.61
Accounts payable	1,548,838,917.16	1,544,459,424.66
Advance receipts from customers	1,336,367.67	2,051,740.10
Financial assets sold under repurchase agreements
Customer deposits and deposits from banks and
other financial institutions
Security trading of agency
Securities underwriting
Staff salaries payable	20,998,899.48	34,316,099.14
Taxes and surcharges payable	182,887,195.43	185,387,137.32
Other payables	197,072,263.29	101,554,174.51
Bank charges and commissions due
Reinsurers due
Contract liabilities	231,793,165.14	221,380,505.81
Liabilities held for sale
Non-current liabilities due within one year
Current liabilities	63,980,275.93	86,456,520.71
Total current liabilities	2,556,049,908.59	2,457,965,972.86

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Consolidated Balance Sheet (Continued)

30 June 2019

(Expressed in RMB, unless otherwise stated)

			Balance
	Closing	at the end
Liabilities and owners' equity	balance	of last year
Non-current liabilities
Insurance contract reserves
Long-term payables
Bonds payables
Including: Preferred shares
Perpetual bonds
Lease liabilities	4,975,397.42
Long-term payables
Long-term staff salaries payables	21,085,502.13		24,722,333.29
Accrued liabilities			2,900,000.00
Deferred income	6,583,176.16		7,050,224.14
Deferred income tax liabilities	103,697.07		102,132.39
Other non-current liabilities
Total non-current liabilities	32,747,772.78		34,774,689.82
Total liabilities	2,588,797,681.37		2,492,740,662.68

- 18 -

Consolidated Balance Sheet (Continued)

30 June 2019

(Expressed in RMB, unless otherwise stated)

			Balance
	Closing	at the end
Liabilities and owners' equity	balance	of last year
Owners' equity:
Share capital	913,838,529.00		913,838,529.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve	1,470,691,800.13		1,470,691,800.13
Less: Treasury shares
Other comprehensive income	196,207.91		191,513.87
Special reserve	258,647,274.54		258,647,274.54
Surplus reserve
General preparation
Undistributed profit	794,337,623.27		825,055,181.86
Total equity attributable to the shareholders
of the parent company	3,437,711,434.85		3,468,424,299.40
Minority interests	250,837,761.28		223,454,061.90
Total owners' equity	3,688,549,196.13		3,691,878,361.30
Total liabilities and owners' equity	6,277,346,877.50		6,184,619,023.98

		Head of the Accounting
Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang

- 19 -

Parent Company Balance Sheet

30 June 2019

(Expressed in RMB, unless otherwise stated)

			Balance
	Closing	at the end
ASSETS	balance	of last year
Current assets:
Cash and cash equivalents	112,853,056.66		238,805,153.90
Financial assets held for trading	372,169,095.89		310,000,000.00
Derivative financial assets
Notes receivables	19,334,520.00
Accounts receivable	39,578,270.13		53,407,782.74
Financing receivables
Prepayments	1,631,825.29		3,768,695.26
Other receivables	311,602,597.89		295,423,983.44
Inventories	26,789,012.93		20,183,017.20
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets
Total current assets	883,958,378.79		921,588,632.54

- 20 -

Parent Company Balance Sheet (Continued)

30 June 2019

(Expressed in RMB, unless otherwise stated)

			Balance
	Closing	at the end
ASSETS	balance	of last year
Non-current assets
Debenture investments
Other debenture investments
Long-term receivables
Long-term equity investments	1,743,458,909.77		1,733,874,170.35
Other equity instruments investments	3,911,610.55		3,905,351.83
Other non-current financial assets
Investment properties	177,581,109.29		176,978,570.90
Fixed assets	58,786,385.85		64,501,654.72
Construction in progress	250,978,140.95		248,705,534.64
Biological assets for production
Fuel assets
Right-of-use assets
Intangible assets	12,577,997.05		13,069,376.80
Development expenses
Goodwill
Long-term deferred expense
Deferred tax assets
Other non-current assets
Total non-current assets	2,247,294,153.46		2,241,034,659.24
Total assets	3,131,252,532.25		3,162,623,291.78

- 21 -

Parent Company Balance Sheet (Continued)

30 June 2019

(Expressed in RMB, unless otherwise stated)

			Balance
	Closing	at the end
Liabilities and owners' equity	balance	of last year
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Note payables	3,929,110.36
Accounts payable	30,735,493.17		38,708,811.11
Advance receipts from customers	871,406.00		4,000.00
Staff salaries payable	1,916,101.77		2,946,015.92
Taxes payable	152,669,856.98		153,711,832.83
Other payables	225,869,545.88		154,312,183.92
Contract liabilities
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities	415,991,514.16		349,682,843.78
Non-current liabilities
Long-term loans
Bonds payables
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long term Staff salaries payable	2,460,048.82		2,998,820.29
Accrued liabilities			2,900,000.00
Deferred income
Deferred income tax liabilities	65,402.64		63,837.96
Other non-current liabilities
Total non-current liabilities	2,525,451.46		5,962,658.25
Total liabilities	418,516,965.62		355,645,502.03

- 22 -

Parent Company Balance Sheet (Continued)

30 June 2019

(Expressed in RMB, unless otherwise stated)

			Balance
	Closing	at the end
Liabilities and owners' equity	balance	of last year
Owners' equity:
Share capital	913,838,529.00		913,838,529.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve	1,434,870,834.28		1,434,870,834.28
Less: Treasury shares
Other comprehensive income	196,207.91		191,513.87
Special reserve
Surplus reserve	258,647,274.54		258,647,274.54
Undistributed profits	105,182,720.90		199,429,638.06
Total owners' equity	2,712,735,566.63		2,806,977,789.75
Total liabilities and owners' equity	3,131,252,532.25		3,162,623,291.78

		Head of the Accounting
Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang

- 23 -

Consolidated Income Statement

January-June 2019

(Expressed in RMB, unless otherwise stated)

		Amount for the	Amount for the
Items	current period	previous period
1.	Revenue	2,129,345,776.54	1,993,629,769.74
	Including: Operating income	2,129,345,776.54	1,993,629,769.74
	Interest income
	Premiums earned
	Fee and commission income
2.	Total operating cost	2,064,814,237.55	1,941,528,974.38
	Including: Operating costs	1,823,553,320.49	1,703,793,649.19
	Interest expenses
	Fee and commission expense
	Surrenders
	Net payment from indemnity
	Net provisions for insurance
	contract
	Insurance policy dividend paid
	Reinsurance cost
	Tax and surcharges	10,655,708.13	9,410,402.47
	Selling expenses	21,892,592.48	24,842,746.83
	Administrative expenses	105,415,293.63	99,945,852.85
	R&D costs	103,493,120.42	103,166,097.03
	Financial expenses	-195,797.60	370,226.01
	Including: Interest expense	2,433,504.47	1,775,338.83
	Interest income	-5,294,211.03	-5,522,060.92
	Add: Other gains	5,766,281.17	1,268,248.20
	Investment income (losses are
	represented by "-")	32,227,952.92	35,460,772.49
	Including: Investment income of
	associates and joint
	ventures	24,716,024.79	25,682,507.56
	Gains arising from derecognition of
	financial assets at amortised cost
	Exchange gain (losses are represented
	by "-")
	Income on hedging the net exposure
	(losses are represented by "-")
	Gains arising from changes in fair
	value (losses are represented by "-")	2,975,260.27
	Credit impairment loss (losses are
	represented by "-")	-4,102,573.57	-1,018,592.09
	Asset impairment loss (losses are
	represented by "-")	-13,210,343.27	238,867.43
	Gains on disposal of assets (losses are
	represented by "-")	190,885.76	-178,452.31

- 24 -

Consolidated Income Statement (Continued)

January-June 2019

(Expressed in RMB, unless otherwise stated)

Items

3. Operating profit (losses are represented by "-")

Add: Non-operating income

Less: Non-operating expenses

4. Total profit (total losses are represented by "-")

Less: Income tax expense

1. Net profit (net losses are represented by "-")
2. 1. Classified by the business continuity
   2. 1. Net profit for going concern (net losses are represented by "-")
      2. Net profit for discontinued operation (net losses are represented by "-")
   3. Classified by the attribution of the ownership
   4. 1. Net Profit attributable to the equity shareholders of the parent company (net losses are represented by "-")
      2. Minority interests (net losses are represented by "-")
3. Net other comprehensive income after tax Net other comprehensive income after tax
   attributable to owners of the parent company
4. 1. Other comprehensive income which will not be reclassified subsequently to profit and loss
   2. 1. Changes as a result of remeasurement of defined benefit plan
      2. Other comprehensive income accounted for using equity method which will not be reclassified to profit and loss
      3. Changes in fair value of other equity instruments investment
      4. Changes in fair value of the enterprise's own credit risk

Amount for the	Amount for the
current period	previous period

88,379,002.27 87,871,639.08

2,607,172.95 2,910,814.51

305,589.45 577,222.19

90,680,585.77 90,205,231.40

20,907,362.66 14,162,182.96

69,773,223.11 76,043,048.44

69,773,223.11 76,043,048.44

42,389,523.73 51,019,460.71

27,383,699.38 25,023,587.73

4,694.04

4,694.04

4,694.04

4,694.04

- 25 -

Consolidated Income Statement (Continued)

January-June 2019

(Expressed in RMB, unless otherwise stated)

			Amount for the	Amount for the
Items		current period	previous period
	(2) Other comprehensive income which will
		be reclassified to profit and loss
	1.	Other comprehensive income
		accounted for using equity
		method which will be
		reclassified to profit and loss
	2.	Changes in fair value of other
		equity instruments investment
	3.	Amount of financial assets
		reclassified to other
		comprehensive income
	4.	Provision for credit impairment of
		other bonds investment
	5.	Cash flow hedging reserve
	6.	Translation difference of financial
		statements in foreign currencies
	7.	Others
	Net other comprehensive income after tax
	attributable to minority shareholders
7.	Total comprehensive income	69,777,917.15	76,043,048.44
	Total comprehensive income attributable to
	the equity holders of the parent company	42,394,217.77	51,019,460.71
	Total comprehensive income attributable to
	minority shareholders	27,383,699.38	25,023,587.73

8. Earnings per share:

(1)	Basic earnings per share (RMB/share)	0.0464	0.0558
(2)	Diluted earnings per share (RMB/share)	0.0464	0.0558
			Head of the Accounting
Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang

- 26 -

Parent Company Income Statement

January-June 2019

(Expressed in RMB, unless otherwise stated)

		Amount for the	Amount for the
Items	current period	previous period
1.	Operating income	35,979,155.19	63,006,618.56
	Less: Operating costs	19,445,018.71	35,598,969.47
	Business taxes and surcharge	2,194,620.77	2,655,900.98
	Selling expenses	1,026,123.63	2,081,113.84
	Administrative expenses	45,751,952.85	45,289,518.52
	R&D costs	9,966,410.41	4,375,401.51
	Financial expenses	-1,177,208.75	-1,001,182.08
	Including: Interest expense
	Interest income	-865,310.60	-946,751.69
	Add: Other incomes	25,993.99	-
	Investment income (losses are
	represented by "-")	31,318,523.30	1,408,417.90
	Including: Investment income of
	associates and joint
	ventures	24,613,457.41	25,053,420.89
	Gains arising from derecognition of
	financial assets at amortised cost
	Income on hedging the net exposure
	(losses are represented by "-")
	Income from change in fair value (losses
	are represented by "-")	2,169,095.89
	Credit impairment loss (losses are
	represented by "-")		4,050,740.35
	Assets impairment loss (losses are
	represented by "-")	-13,188,717.99	255.71
	Gains on disposal of assets (losses are
	represented by "-")	-32,467.60	854.70
2.	Operating profit (losses are
	represented by "-")	-20,935,334.84	-20,532,835.02
	Add: Non-operating income		18,200,914.74
	Less: Non-operating expenses	204,500.00	32,467.60

3. Total profit (total losses are

represented by "-")

-21,139,834.84

-2,364,387.88

Less: Income tax expense

- 27 -

Parent Company Income Statement (Continued)

January-June 2019

(Expressed in RMB, unless otherwise stated)

		Amount for the	Amount for the
Items	current period	previous period
4.	Net profit (net losses are represented by "-")	-21,139,834.84	-2,364,387.88

1. Net profit for going concern (net losses

are represented by "-")

-21,139,834.84

-2,364,387.88

1. Net profit for discontinued operation (net losses are represented by "-")

5.	Net other comprehensive income after tax	4,694.04
	(1) Other comprehensive income which will
		not be reclassified subsequently to
		profit and loss	4,694.04
	1.	Changes as a result of
		remeasurement of defined
		benefit plan
	2.	Other comprehensive income
		accounted for using equity
		method which will not be
		reclassified to profit and loss
	3.	Changes in fair value of other
		equity instruments investment	4,694.04

1. 1. Changes in fair value of the enterprise's own credit risk
2. Other comprehensive income which will be reclassified to profit and loss
3. 1. Other comprehensive income accounted for using equity method which will be reclassified to profit and loss
   2. Changes in fair value of other debt investment
   3. Amount of financial assets reclassified to other comprehensive income
   4. Provision for credit impairment of other debt investment
   5. Cash flow hedging reserve
   6. Translation difference of financial statements in foreign currencies
   7. Others

- 28 -

Company Income Statement (Continued) January-June2019

(Expressed in RMB, unless otherwise stated)

	Amount for the	Amount for the
Items	current period	previous period
6. Total comprehensive income	-21,135,140.80	-2,364,387.88

7. Earnings per share:

1. Basic earnings per share (RMB/share)
2. Diluted earnings per share (RMB/share)

		Head of the Accounting
Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang

- 29 -

Consolidated Cash Flow Statement

January-June 2019

(Expressed in RMB, unless otherwise stated)

		Amount for the	Amount for the
Items	current period	previous period
1.	Cash flows from operating activities
	Cash received from the sale of goods and
	rendering of services	1,917,822,585.46	2,051,599,065.88
	Net increase in deposits and placements from
	financial institutions
	Net increase in borrowings due to central bank
	Net increase in loans from banks and other
	financial institutions
	Cash received from premiums of original
	insurance contract
	Net amount of reinsurance business
	Net increase in deposits of the insured and
	investment
	Cash received from interests, fees and
	commissions
	Net increase in placements from banks and
	other financial institutions
	Net increase in repurchasing
	Net cash received from securities brokerage
	Refunds of taxes	36,995,137.15	36,957,849.05
	Cash received relating to other operating
	activities	135,307,177.54	124,685,674.31
	Sub-total of cash inflows from operating
	activities	2,090,124,900.15	2,213,242,589.24

- 30 -

Consolidated Cash Flow Statement (Continued)

January-June 2019

(Expressed in RMB, unless otherwise stated)

	Amount for the	Amount for the
Items	current period	previous period
Cash paid on purchase of goods and services
received	1,948,079,929.87		1,848,536,201.20
Net increase in loans and advances
Net increase in deposits in the Central Bank
and other financial institutions
Cash paid for claim settlements on original
insurance contract
Net increase in financial assets held for trading
Net increase in placement
Cash paid for interests, fees and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees	261,894,614.47		240,655,958.39
Cash paid for all types of taxes	76,227,262.45		115,249,064.91
Cash paid relating to other operating activities	106,671,260.95		141,539,541.89
Sub-total of cash outflows from operating
activities	2,392,873,067.74		2,345,980,766.39
Net cash flows generated from operating
activities	-302,748,167.59		-132,738,177.15

- 31 -

Consolidated Cash Flow Statement (Continued)

January-June 2019

(Expressed in RMB, unless otherwise stated)

		Amount for the	Amount for the
Items	current period	previous period
2.	Cash flows from investing activities
	Cash received from disposal and returns of
	investments
	Cash received from return on investments	29,347,027.95	10,024,098.81
	Net cash received from the disposal of fixed
	assets, intangible assets and other long-term
	assets	3,191,048.10	106,399.35
	Net cash received from disposal of subsidiaries
	and other operating entities
	Cash received relating to other investing
	activities	860,000,000.00	950,000,000.00
	Sub-total of cash inflows from investing
	activities	892,538,076.05		960,130,498.16
	Cash paid on purchase of fixed assets,
	intangible assets and other long-term assets	69,932,139.27		19,317,554.42
	Cash paid for investments
	Net increase in secured loans
	Net cash paid on acquisition of subsidiaries
	and other operating entities
	Cash paid relating to other investing activities	990,000,000.00		960,000,000.00
	Sub-total of cash outflows from investing
	activities	1,059,932,139.27		979,317,554.42
	Net cash flows generated from operating
	activities	-167,394,063.22		-19,187,056.26

- 32 -

Consolidated Cash Flow Statement (Continued)

January-June 2019

(Expressed in RMB, unless otherwise stated)

		Amount for the	Amount for the
Items	current period	previous period
3.	Net cash flows generated from financing
	activities
	Cash received from investment
	Including: Cash received by subsidiaries from
	minority shareholders' investment
	Cash received from borrowings	95,000,000.00	95,000,000.00
	Cash received from issuing bonds
	Cash received relating to other financing
	activities	19,500,580.63	39,198,666.76
	Sub-total of cash inflows from financing
	activities	114,500,580.63		134,198,666.76
	Cash paid on repayment of borrowings	140,000,000.00		45,000,000.00
	Cash paid on distribution of dividends or
	profits, or interest expenses	2,305,605.11		1,489,974.74
	Including: bonus and profit paid to minority
	shareholders by subsidiaries
	Cash paid relating to other financing activities	127,899.36		285,364.09
	Sub-total of cash outflows from financing
	activities	142,433,504.47		46,775,338.83
	Net cash flows generated from financing
	activities	-27,932,923.84		87,423,327.93

4. Effect of foreign exchange rate changes on

	cash and cash equivalents	-1,068,186.26	-100,015.82
5.	Net increase in cash and cash equivalents	-499,143,340.91	-64,601,921.30
	Add: Cash and cash equivalents	1,292,114,192.80	1,191,597,115.73
6.	Cash and cash equivalents	792,970,851.89	1,126,995,194.43

		Head of the Accounting
Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang

- 33 -

Parent Company Cash Flow Statement

January-June 2019

(Expressed in RMB, unless otherwise stated)

		Amount for the	Amount for the
Items	current period	previous period
I.	Cash flows from operating activities
	Cash received from the sale of goods and
	rendering of services	31,358,826.06	49,420,552.68
	Refunds of taxes
	Cash received received to other operating
	activities	23,617,416.01	69,583,432.96
	Sub-total of cash inflows from operating
	activities	54,976,242.07		119,003,985.64
	Cash paid on purchase of goods and services
	received	18,722,950.81		30,505,465.75
	Cash paid to and on behalf of employees	50,093,202.73		44,545,818.53
	Cash paid for all types of taxes	3,792,973.03		6,922,181.10
	Cash paid relating to other operating activities	73,226,772.04		116,209,026.87
	Sub-total of cash outflows from operating
	activities	145,835,898.61		198,182,492.25
	Net cash flows generated from operating
	activities	-90,859,656.54		-79,178,506.61

- 34 -

Parent Company Cash Flow Statement (Continued)

January-June 2019

(Expressed in RMB, unless otherwise stated)

		Amount for the	Amount for the
Items	current period	previous period
2.	Cash flows from investing activities
	Cash received from disposal and returns of
	investments
	Cash received from return on investments	25,564,905.44	9,573,070.12
	Net cash received from the disposal of fixed
	assets, intangible assets and other long-term
	assets
	Net cash received from disposal of subsidiaries
	and other operating entities
	Cash received relating to other investing
	activities	670,000,000.00	900,000,000.00
	Sub-total of cash inflows from investing
	activities	695,564,905.44		909,573,070.12
	Cash paid on purchase of fixed assets,
	intangible assets and other long-term assets
	Cash paid for investments			10,000,000.00
	Net cash paid on acquisition of subsidiaries
	and other operating entities
	Cash paid relating to other investing activities	730,000,000.00		860,000,000.00
	Sub-total of cash outflows from investing
	activities	730,000,000.00		870,000,000.00
	Net cash flows generated from operating
	activities	-34,435,094.56		39,573,070.12

- 35 -

Parent Consolidated Cash Flow Statement (Continued)

January-June 2019

	Amount for the	Amount for the
Items	current period	previous period

1. Cash flows from financing activities
   Cash received from investment Cash received from borrowings
   Cash received from issuing bonds
   Cash received from other financing activities
   Sub-total of cash inflows from financing activities
   Cash paid on repayment of borrowings
   Cash paid on distribution of dividends or profits, or interests expenses
   Cash paid on other financing activities
   Sub-total of cash outflows from financing activities
   Net cash flows from financing activities
2. Effect of fluctuations in exchange rates on cash and cash

equivalents			0.54
5. Net increase in cash and cash equivalents	-125,294,751.10	-39,605,435.95
Add: balance of cash and cash equivalents at the beginning
of the period		236,485,704.31	171,036,014.33
6. Balance of cash and cash equivalents at the end of the
period		111,190,953.21	131,430,578.38
		Head of the
Legal representative:	Chief Accountant:	Accounting Department:
Xia Dechuan	Hu Dali	Liu Xianfang

- 36 -

- 37 -

Consolidated Statement of changes in equity

January-June 2019

(Expressed in RMB, unless otherwise stated)

Current period

Equity attributable to parent company

Other equity instrument

Other

Less:

comprehensive

General

Undistributed

Minority

Total owners'

Items

Share capital

Preference shares

Perpetual bonds

Others

Capital reserve

treasury shares

income

Special reserve

Surplus reserve

risk reserve

profit

Other

Subtotal

interests

equity

I.

Balance at the end of prior year

913,838,529.00

1,470,691,800.13

191,513.87

258,647,274.54

825,055,181.86

3,468,424,299.40

223,454,061.90

3,691,878,361.30

Add: Changes in accounting policies

Error correction of previous period

Business combination involving entities

under common control

Others

II.

Balance at the beginning of current year

913,838,529.00

1,470,691,800.13

191,513.87

258,647,274.54

825,055,181.86

3,468,424,299.40

223,454,061.90

3,691,878,361.30

III.

Changes of current year (decreases are

represented by "-")

4,694.04

-30,717,558.59

-30,712,864.55

27,383,699.38

-3,329,165.17

(I)

Total comprehensive income

4,694.04

42,389,523.73

42,394,217.77

27,383,699.38

69,777,917.15

1. Share capital contributed or withdrew by owners
2. 1. Share capital contributed by owners
   2. Capital contributed by holders of other equity instruments
   3. Amount of share-based payment included
   4. Others

(III)

Profit distribution

-73,107,082.32

-73,107,082.32

-73,107,082.32

1. Appropriation of surplus reserve
2. Appropriation of general risk reserve

	3.	Appropriation of profit to owners	-73,107,082.32	-73,107,082.32	-73,107,082.32
	4.	Others
(IV)	Internal carry-over within equity

1. 1. Transfer of capital reserve to share capital
   2. Transfer of surplus reserve to share capital
   3. Surplus reserve to cover losses
   4. Change in defined benefit plan carried over to retained earnings
   5. Others
2. Appropriation and application of

special reserve

1. Appropriation of special reserve
2. Application of special reserve (VI) Others

IV.	Balance at the end of current period	913,838,529.00	1,470,691,800.13	196,207.91	258,647,274.54	794,337,623.27	3,437,711,434.85	250,837,761.28	3,688,549,196.13

- 38 -

Consolidated Statement of changes in equity (Continued)

January-June 2019

(Expressed in RMB, unless otherwise stated)

Preceding period

Equity attributable to parent company

Other equity instrument

Other

Less:

comprehensive

General

Undistributed

Minority

Total owners'

Items

Share capital

Preference shares

Perpetual bonds

Others

Capital reserve

treasury shares

income

Special reserve

Surplus reserve

risk reserve

profit

Other

Subtotal

interests

equity

I.

Balance at the end of prior year

913,838,529.00

1,464,043,022.82

254,995,636.63

730,715,948.32

3,363,593,136.77

208,050,616.66

3,571,643,753.43

Add: Changes in accounting policies

Error correction of previous period

Business combination involving entities under

common control

Others

II.

Balance at the beginning of current year

913,838,529.00

1,464,043,022.82

254,995,636.63

730,715,948.32

3,363,593,136.77

208,050,616.66

3,571,643,753.43

III.

Changes of current year (decreases are

represented by "-")

-12,949,236.32

-12,949,236.32

25,023,587.73

12,074,351.41

(I)

Total comprehensive income

51,019,460.71

51,019,460.71

25,023,587.73

76,043,048.44

1. Share capital contributed or withdrew by owners
2. 1. Share capital contributed by owners
   2. Capital contributed by holders of other equity instruments
   3. Amount of share-based

payment included

4. Others

(III)

Profit distribution

-63,968,697.03

-63,968,697.03

-63,968,697.03

1. Appropriation of surplus reserve
2. Appropriation of general risk reserve

	3.	Appropriation of profit to owners	-63,968,697.03	-63,968,697.03	-63,968,697.03
	4.	Others
(IV)	Internal carry-over within equity

1. 1. Transfer of capital reserve to share capital
   2. Transfer of surplus reserve to share capital
   3. Surplus reserve to cover losses
   4. Changes arising from carry-over of re- measured net liabilities or net assets of defined benefit plan
   5. Other
2. Appropriation and application of

special reserve

1. Appropriation of special reserve
2. Application of special reserve (VI) Others

IV. Balance at the end of current year913,838,529.001,464,043,022.82254,995,636.63717,766,712.003,350,643,900.45 233,074,204.39 3,583,718,104.84

Legal Representative:	Chief Accountant:	Head of the Accounting Department:
Xia Dechuan	Hu Dali	Liu Xianfang

- 39 -

Parent Company Statement of changes in equity

January-June 2019

(Expressed in RMB, unless other wise stated)

Current period

Other equity instrument

Other

Preference

Less:

comprehensive

Undistributed

Total

Items

Share capital

shares

Perpetual bonds

Others

Capital reserve

treasury shares

income

Special reserve

Surplus reserve

profit

owners' equity

I.

Balance at the end of prior year

913,838,529.00

1,434,870,834.28

191,513.87

258,647,274.54

199,429,638.06

2,806,977,789.75

Add: Changes in accounting policies

Error correction of previous period

Others

II.

Balance at the beginning of current year

913,838,529.00

1,434,870,834.28

191,513.87

258,647,274.54

199,429,638.06

2,806,977,789.75

III.

Changes of current year

(decreases are represented by "-")

4,694.04

-96,416,013.05

-96,411,319.01

(I) Total comprehensive income

4,694.04

-21,139,834.84

-21,135,140.80

1. Share capital contributed or withdrew by owners
2. 1. Share capital contributed by owners
   2. Capital contributed by holders of other equity instruments
   3. Amount of share-based payment included
   4. Others

(III) Profit distribution

-73,107,082.32

-73,107,082.32

1. Appropriation of surplus reserve

2.

Appropriation to owners (or shareholders)

-73,107,082.32

-73,107,082.32

3. Others

(IV) Internal carry-over within equity

1. 1. Transfer of capital reserve to capital (or share capital)
   2. Transfer of surplus reserve to (or share capital)
   3. Surplus reserve to cover losses
   4. Change in defined benefit plan carried over to retained earnings
   5. Other comprehensive income carried over to retained earnings
   6. Others
2. Special reserve
3. 1. Appropriation for the current period
   2. Application for the current period

(VI) Others

IV. Balance at the end of current period	913,838,529.00	1,434,870,834.28	196,207.91	258,647,274.54	105,182,720.90	2,712,735,566.63

- 40 -

Parent Company Statement of changes in equity (Continued)

January-June 2019

(Expressed in RMB, unless other wise stated)

Preceding period

Other equity instrument

Other

Preference

Less:

comprehensive

Undistributed

Total

Items

Share capital

shares

Perpetual bonds

Others

Capital reserve

treasury shares

income

Special reserve

Surplus reserve

profit

owners' equity

I.

Balance at the end of prior year

913,838,529.00

1,434,870,834.28

254,995,636.63

230,533,593.95

2,834,238,593.86

Add: Changes in accounting policies

Error correction of previous period

Others

II. Balance at the beginning of current year

913,838,529.00

1,434,870,834.28

254,995,636.63

230,533,593.95

2,834,238,593.86

1. Changes of current year

(decreases are represented by "-")	-66,333,084.91	-66,333,084.91
(I)	Total comprehensive income	-2,364,387.88	-2,364,387.88

1. Share capital contributed or withdrew by owners
2. 1. Share capital contributed by owners
   2. Capital contributed by holders of

other equity instruments

1. Amount of share-based payment included
2. Others

(III) Profit distribution

-63,968,697.03

-63,968,697.03

1. Appropriation of surplus reserve

2.

Appropriation to owners (or shareholders)

-63,968,697.03

-63,968,697.03

3. Others

(IV) Internal carry-over within equity

1. Transfer of capital reserve to capital (or share capital)
2. Transfer of surplus reserve to capital (or share capital)
3. Surplus reserve to cover losses
4. Changes arising from carry-over of

re-measured net liabilities or net assets of defined benefit plan

1. 1. Others
2. Appropriation and application of special reserve
3. 1. Appropriation of special reserve
   2. Application of special reserve

(VI) Others

IV. Balance at the end of current year	913,838,529.00	1,434,870,834.28	254,995,636.63	164,200,509.04	2,767,905,508.95

Legal Representative:	Chief Accountant:	Head of the Accounting Department:
Xia Dechuan	Hu Dali	Liu Xianfang

NOTES

1. PREPARATION OF BASIS
   Based on going concern and actual transactions and events, the Company prepared financial statements in accordance with the basic and specific standards of the Accounting Standards for Business Enterprises, the Application Guidance for Accounting Standard for Business Enterprises, interpretations of the Accounting Standards for Business Enterprises and other relevant regulations issued by the Ministry of Finance (hereinafter collectively referred to as "CAS"), and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15 - General Provisions on Financial Reporting issued by the China Securities Regulatory Commission.
2. GOING CONCERN
   For the reporting period and at least 12 months since the end of the reporting period, the Company's production and operation was stable with reasonable asset and liability structure, therefore it has ability to continue as a going concern and there is no significant risk affecting its ability to continue as a going concern.
3. SEGMENT REPORTS
   The Company established 4 parts of segment reports on the basis of the internal organisational structure, management requirement and internal report system. They are intelligent city industry, electronic manufacturing service, intelligent manufacturing industry and others. Each segment provides different products and service, or activities from different areas. Due to the different demands of each segment applying for different technology and marketing strategy, the company's management control the different segments of business activities separately, and evaluate the operating results on a regular basis in order to allocate resources and evaluate its performance.
   The inter-segment transfer price is determined based on the actual transaction price, and the expenses indirectly attributable to each segment are distributed among the segments according to the corresponding proportion. The assets are allocated based on the operations of the segments and the location of the assets. Segment liabilities include liabilities attributable to the segment from the segment's operating activities. If the liabilities related to the liabilities shared by the multiple operating segments are allocated to these operating segments, the shared liabilities are also allocated to these operating segments.
   Non-current assets are classified according to the assets in which they are located, excluding available-for-sale financial assets and deferred income tax assets. The non-current assets of the Company are all within the China Mainland.

- 41 -

- 42 -

		Electronic	Electronic
	Intelligent city	manufacturing	manufacturing		Undistributed	Eliminations
Item	industry	service	industry	Others	amount	among segments	Total
Trade income from third party	839,423,275.78	852,153,901.49	396,994,444.66	40,774,154.61			2,129,345,776.54
Trade income between segments	32,835,379.77	36,729,931.20	25,647,314.15	14,102,412.82		-109,315,037.94
Investment income from joint ventures and
associated		102,567.38			24,613,457.41		24,716,024.79
Asset impairment of losses				-21,625.28	-13,188,717.99		-13,210,343.27
Credit impairment losses	-987,865.58	656,576.61		-3,771,284.60			-4,102,573.57
Depreciation and amortisation expense	3,446,370.22	6,944,719.34	4,281,264.60	16,528,980.05	11,469,153.23		42,670,487.44
Total Profit	34,160,245.32	73,002,627.07	10,210,398.30	-27,144,411.35	-1,740,584.46	2,192,310.89	90,680,585.77
Income tax expense	5,150,973.69	15,748,237.47		8,151.50			20,907,362.66
Net profit	29,009,271.63	57,254,389.60	10,210,398.30	-27,152,562.85	-1,740,584.46	2,192,310.89	69,773,223.11
Total assets	2,073,383,263.29	1,670,276,602.58	1,116,504,137.32	777,703,356.93	3,018,768,822.30	-2,379,289,304.92	6,277,346,877.50
Total liabilities	1,325,464,080.03	775,268,814.62	688,824,329.39	165,479,961.94	295,818,873.53	-662,058,378.14	2,588,797,681.37
Other non-cash expense beside depreciation
and amortisation expense				1,789,028.15	301,673,363.41		303,462,391.56
Long-term investment for joint ventures
and associated enterprises	1,589,886.41	13,170,007.45	10,066,325.64	-10,537,372.99	-2,800,910.65	-3,939,924.04	7,548,011.82
Increase in other non-current assets besides
long-term investment

1. ACCOUNTS RECEIVABLE
2. 1. Accounts receivable shown by aging

Aging	Closing balance
Within 1 year (including 1 year)	977,722,846.82
Including: 0-6 months	837,342,491.22
7-12 months	140,380,355.60
1-2 years	128,657,187.74
2-3 years	39,592,205.72
3-4 years	30,092,282.05
4-5 years	1,315,839.97
Over 5 years	6,646,529.00
Total	1,184,026,891.30

Notes: the above amount is without the provisions of accounts receivable.

2. Accounts receivable disclosed by classification by means of bad debt provision

						Closing balance
	Carrying Amount	Bad debt Provision	Carrying Value
									Provision
Type	Value	Percentage	Value	percentage
			(%)				(%)
Accounts receivable with individual
accrual	320,453,755.11		27.06	22,333,291.84	6.97		298,120,463.27
Including:
Accounts receivable with individual
significance and accruing bad
debt provision individually	295,369,459.24	24.95	16,879,699.05	5.71	278,489,760.19
Accounts receivable with individual
insignificance but individually
accruing bad debt provision	25,084,295.87	2.11	5,453,592.79	21.74	19,630,703.08
Accounts receivable accruing bad
debt provision in credit risk
characteristic portfolio	863,573,136.19	72.94	17,651,665.76	2.04	845,921,470.43
Among which: Aging portfolio	445,491,305.68	37.63	17,393,417.55	3.90	428,097,888.13
Related parties
portfolio	418,081,830.51	35.31	258,248.21	0.06	417,823,582.30
Total	1,184,026,891.30		100.00	39,984,957.60				1,144,041,933.70

- 43 -

						Opening balance
	Carrying Amount	Bad debt Provision	Carrying Value
									Provision
Type	Value	Percentage	Value	percentage
			(%)				(%)
Single item of bad debt provision	233,783,226.75		22.41	22,264,703.00	9.52		211,518,523.75
Among which:
Accounts receivable with individual
significance and accruing bad
debt provision individually	189,887,214.14	18.20	16,879,699.05	8.89	173,007,515.09
Accounts receivable with individual
insignificance but individually
accruing bad debt provision	43,896,012.61	4.21	5,385,003.95	12.27	38,511,008.66
Accounts receivable accruing bad
debt provision in credit risk
characteristic portfolio	809,493,651.24	77.59	17,571,047.51	2.17	791,922,603.73
Among which: Aging portfolio	407,082,120.09	39.02	17,287,845.29	4.25	389,794,274.80
Related parties
portfolio	402,411,531.15	38.57	283,202.22	0.07	402,128,328.93
Total	1,043,276,877.99		100.00	39,835,750.51				1,003,441,127.48

- 44 -

Single item of bad debt provision:

			Closing balance
	Carrying	Bad debt	Provision
Name	amount	provision	percentage	Reasons for provision
				(%)
Chengdu Rail Transit Group Co., Ltd.	79,850,880.00				Expected to be recovered
NARI Technology Co., Ltd.	65,925,570.64		35,822.50	0.05	Expected partly not to be
					recovered
Tianjin Binhai Rail Transit Development	23,018,700.00				Expected to be recovered
Co., Ltd.
Nanjing Metro Group Co., Ltd.	17,277,352.95				Expected to be recovered
Nanjing Yougete Communication	14,275,594.00		14,275,594.00	100.00	Expected to be recovered
Equipment Co., Ltd.
Nanjing Ninggao Railway Transportation	14,188,690.38				Expected to be recovered
Co., Ltd.
Shijiazhuan Railway Transportation Co.,	13,034,598.29				Expected to be recovered
Ltd.
Xinjiang Uygur Autonomous Region	12,214,150.80		1,988,587.62	16.28	Expected partly not to be
Press and Publications Bureau of					recovered
Radio and Television
Bwton Technology Co., Ltd.					Expected to be recovered
Nanjing Ninggao Railway Transportation	10,545,256.26				Expected to be recovered
Co., Ltd.
Tianjin Underground Railway Group	9,512,022.30				Expected to be recovered
Co.,Ltd.
Suzhou Rail Transit Group Co., Ltd.	11,430,385.79				Expected to be recovered
Jiangsu Cable Network Development	5,914,000.00		543,650.00	9.19	Expected partly not to be
Co. Ltd. Sihong Branch					recovered
Jiangsu Province Cable Broadcasting	5,896,625.57		36,044.93	0.61	Expected partly not to be
Network Co., Ltd Nanjing Branch					recovered
China Cable Television Network Co.,	3,827,640.00		24,331.00	0.64	Expected partly not to be
Ltd. Hainan Branch					recovered
Chengdu Metro Co., Ltd.	3,714,992.26				Expected to be recovered
Zhangzhou Wanda Plaza Co., Ltd.	3,170,200.08				Expected to be recovered
Linquan County Key Project	2,720,000.00				Expected to be recovered
Construction Administration Bureau
Information Department of A Certain	2,023,000.00		2,023,000.00	100.00	Expected not to be
Military Region Command					recovered
Subtotal of other petty amount	10,814,095.79		3,406,261.79	31.50	Expected partly not to be
					recovered
TOTAL	320,453,755.11		22,333,291.84

- 45 -

Provision by portfolio:
		Closing balance
	Accounts		Bad debt	Provision
Name	receivable		Provision	percentage
				(%)
Aging portfolio	445,491,305.68	17,393,417.55	3.90
Related parties portfolio	418,081,830.51	258,248.21	0.06
TOTAL	863,573,136.19	17,651,665.76

1. In a portfolio, accounts receivable accruing bad debt provision by aging method

		End of period
	Carrying value
					Bad debt
Aging	Amount				Provision
		(%)
Within 1 year (inclusive)	368,386,812.02	82.69		440,617.25
Among which: 0-6 months	359,574,467.12	80.71
7-12 months	8,812,344.90	1.98		440,617.25
1-2 years past due	43,883,854.53	9.85		4,388,385.45
2-3 years past due	12,692,094.63	2.85		1,903,814.20
3-4 years past due	13,193,300.11	2.96		3,957,990.03
4-5 years past due	1,265,267.54	0.28		632,633.77
Over 5 years	6,069,976.85	1.36		6,069,976.85
TOTAL	445,491,305.68	100.00		17,393,417.55

- 46 -

1. In a portfolio, accounts receivable accruing bad debt provision by other means:

				End of period
					Provision	Bad debt
Name	Carrying amount		percentage Provision
				(%)
Related parties portfolio	418,081,830.51		0.06	258,248.21
TOTAL	418,081,830.51					258,248.21

3. Provision, transfer and recovery of bad debts in the period

				Change amount for current period
		Opening	Accrual of	Return or	Transfer or	Closing
Type	balance	bad debts	recovery	wirte-off	balance
Single item of bad debt provision	22,264,703.00	68,588.84					22,333,291.84
Among them: Accounts receivable with
significant single amount
and separate provision for
bad debts	16,879,699.05							16,879,699.05
Accounts receivable with insignificant single
amount but with separate provision for
bad debts	5,385,003.95	68,588.84					5,453,592.79
Receivables with provision for bad debts
based on credit risk characteristics	17,571,047.51	791,798.68	711,180.43			17,651,665.76
Among them: Receivables with provision for
bad debts by aging analysis	17,287,845.29	791,798.68	686,226.42			17,393,417.55
Receivables with other combinations for
provision for bad debts	283,202.22			24,954.01			258,248.21
Total	39,835,750.51		860,387.52	711,180.43			39,984,957.60

4. There were no accounts receivable effectively verified in the period.

- 47 -

5. Status of top five receivables according to the closing balance collected by the debtor.

		Closing balance
		Percentage
	Accounts		of total	Provision
Name	receivable	receivables	for bad debt
		(%)
Nanjing CEC-Panda Flat Panel Technology
Co., Ltd	136,985,130.67	11.57
Chengdu CEC-Panda Display Technology
Co.,Ltd.	136,155,510.37	11.50
Chengdu Rail Transit Group Co, Ltd.	79,850,880.00	6.74
NARI Technology Co., Ltd	65,925,570.64	5.57			35,822.50
Nanjing CEC-Panda LCD Technology
Co.,Ltd.	57,045,844.29	4.82
TOTAL	475,962,935.97	40.20			35,822.50

1. OTHER EQUITY INSTRUMENTS INVESTMENTS

1. Other equity instruments investments

Project	Closing balance Opening Balance
Jiangsu Research and Design Institute Of
Urban Rail Transit Co., Ltd		3,911,610.55		3,905,351.83
Total	3,911,610.55	3,905,351.83

- 48 -

2. Status of investment in significant transactional equity instruments at the end of the period

					Reasons
					designated to be	Reasons for
				Amounts	measured at fair	transferring
				transferred to	value and whose	other
	Revenue			retained income	changes are	comprehensive
	recognized in			from other	included in other	income to
	the current	Cumulative	Aggregate	consolidated	comprehensive	retained
Project	period	gain	losses	proceeds	income	earnings
Jiangsu Research and Design
Institute Of Urban Rail Transit					Non-transactional
Co., Ltd		311,610.55			investment
(6) CONTRACT ASSETS AND CONTRACT LIABILITIES
Details of contract assets and contract liabilities
					Contract assets
Opening balance					360,753,744.24
Increase					216,758,572.97
Converted in to accounts receivable in this period		51,534,945.38
Contract asset impairment provision			1,630,215.12
Net closing balance					524,347,156.71
Including: Listed as contract assets				524,347,156.71
Listed as other non-current assets
						Contract
						liabilities
Opening balance					221,380,505.81
Increase					77,947,349.10
Interest adjustment
The income confirmed in the current period includes the income
in the balance at the beginning of the year			67,534,689.77
Closing balance					231,793,165.14
Including: Listed as contractual liabilities			231,793,165.14
Listed as other non-current liabilities

- 49 -

(7) Accounts payable
(1) List of accounts payable
Classified by aging:
Aging	Closing balance	Opening balance
Within 1 year (inclusive)	1,306,204,833.41		1,359,695,678.37
1-2 years (including 2 year)	111,243,655.54		111,329,297.59
2-3 years (including 3 year)	103,233,252.97		46,995,341.56
Over 3 years	28,157,175.24		26,439,107.14
Total	1,548,838,917.16		1,544,459,424.66
Classified by nature
Type	Closing balance	Opening balance
Payment for goods	1,035,213,947.63		1,188,473,834.78
Project funds	455,886,702.63		304,111,326.91
Processing and maintenance funds	18,987,366.02		19,429,824.88
Logistics warehousing funds	13,509,062.44		8,126,415.82
Others	25,241,838.44		24,318,022.27
Total	1,548,838,917.16		1,544,459,424.66

- 50 -

1. Significant account payables aged over 1 year

		Reasons for
		not settled
	Closing	or carried
Items	balance	forward
Suzhou Fuqiang Technology Co., Ltd.	23,753,637.70	Not settled
China Railway Signal & Communication
Shanghai Engineering Bureau Group
Co., Ltd.	13,218,776.00	Not settled
Shanghai Charmhope Information
Technology Co.,Ltd.	8,705,989.98	Not settled
Anhui Chunqin Education Equipment
Co.,Ltd.	8,237,655.93	Not settled
Beijing Sumavision Technologies Co., Ltd.	8,180,854.63	Not settled
Nanjing Changxin Technology Co.,Ltd.	7,340,078.79	Not settled
NIVEK Industrial Co.,Ltd.	6,755,216.72	Not settled
Suzhou Jinnaodai Intelligent System
Engineering Co.,Ltd.	6,229,765.99	Not settled
Xunfei Zhiyuan Information Technology
Co.,Ltd.	6,036,622.00	Not settled
Motorola Systems(China) Co.,Ltd.	4,350,669.55	Not settled
Jiangsu Hengxin Technology Co.,Ltd.	3,953,627.72	Not settled
Panda Electronics Group Limited	3,570,034.49	Not settled
Nanjing Hua Hao Buildings Technology
Co., Ltd.	3,244,054.95	Not settled
Urumqi Weirui Innovation Information
Technology Co., Ltd.	3,072,391.01	Not settled
Dongba Construction Installation
Engineering Co., Ltd.	2,861,239.19	Not settled
Zhongtian Rili RF Cables Co.,Ltd.	2,860,908.40	Not settled
Judong Machinery(Kunshan)Co.,Ltd..	2,658,180.00	Not settled
Shijiazhuang Yuandong Communications
Co.,Ltd.	2,455,660.20	Not settled
Jiangsu Sument Information Technology
Co., Ltd	2,296,530.00	Not settled
Xinyi Shuangtang Town Meiguang
Building Materials Business department,	2,273,920.00	Not settled
Beijing Jinbalun Radio and Television
Technology Co.,Ltd.	2,043,408.48	Not settled
Total	124,099,221.73

- 51 -

(8) Operating income and operating cost
	Current period		Last period
Items	Income	Cost		Income		Cost
Principal business	2,114,190,750.98	1,819,973,412.88	1,990,390,967.77	1,702,357,561.36
Other business	15,155,025.56	3,579,907.61	3,238,801.97	1,436,087.83
Total	2,129,345,776.54		1,823,553,320.49	1,993,629,769.74	1,703,793,649.19

1. Income tax expenses

1. List of income tax expenses

Items	Current period	Last period
Current income tax	20,722,418.32	14,059,110.44
Deferred income tax	184,944.34	103,072.52
Total	20,907,362.66		14,162,182.96

- 52 -

2. Explain of the relationship of income Tax Expenses and accounting profit

Items	Current period
Total profit	90,680,585.77
Income tax expenses calculated at the statutory
(or applicable) tax rate	22,670,146.44
Different tax rate of subsidiaries	2,032,528.03
Adjustment on previous income tax	2,399,673.05
Income not subject to tax
Expenses not deductible for tax purposes
Utilisation of previously unrecognised tax losses for the
current period	184,962.34
Unrecognised deductible temporary difference and
deductible tax loss for the current period
Effect of additional deducible cost under tax law	-6,379,947.20
Income tax expenses	20,907,362.66

Companies subject to different income tax rates are disclosed as follows:

Name of the enterprise	Income tax rate
Galant Limited	16.50%
Hong Kong China Electronic Trading Co., Ltd	16.50%
Nanjing Panda Electronic Manufacture Co., Ltd	15.00%
Nanjing Panda Communication Technology Co., Ltd	15.00%
Nanjing Huage Appliance and Plastic Industrial Co., Ltd	15.00%
Nanjing Panda Information Industry Co., Ltd	15.00%
Nanjing Panda Mechatronics Instrument Technology
Co., Ltd	15.00%
Shenzhen Jinghua Information Technology Co., Ltd	15.00%
Nanjing Panda Electronic Equipment Co., Ltd	15.00%
Shenzhen Jinghua Property Management Co., Ltd	20.00%

1. Nanjing Panda Electronic Manufacture Co., Ltd., a second-level subsidiary of the Company, passed the high-tech enterprise on 7 December 2017, and obtained the High-tech Enterprise Certificate (certificate number GR201732003580) jointly issued by Jiangsu Provincial Science and Technology Department and so on. The

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certificate is valid for 3 years. From 1 January 2017 to 31 December 2019, Nanjing Panda Electronic Manufacture Co., Ltd. paid income tax at 15% of the taxable income.

1. Nanjing Panda Communications Technology Co., Ltd., a second-level subsidiary of the Company, re-identifiedhigh-tech enterprise on 7 December 2017, and obtained the High-tech Enterprise Certificate (certificate number GR201732003313) jointly issued by Jiangsu Provincial Science and Technology Department and so on. The certificate is valid for 3 years. From 1 January 2017 to 31 December 2019, Nanjing Panda Communications Technology Co., Ltd. paid income tax at 15% of the taxable income.
2. Nanjing Huage Appliance and Plastic Industrial Co., Ltd., a third-level subsidiary of the Company, re-identifiedhigh-tech enterprise on 7 December 2017, and obtained the High-tech Enterprise Certificate (certificate number GR201732002602) jointly issued by Jiangsu Provincial Science and Technology Department and so on. The certificate is valid for 3 years. From 1 January 2017 to 31 December 2019, Nanjing Huage Appliance and Plastic Industrial Co., Ltd. paid income tax at 15% of the taxable income.
3. Nanjing Panda Information Industry Co., Ltd., a second-level subsidiary of the Company, re-identifiedhigh-tech enterprise on 28 November 2018, and obtained the High-tech Enterprise Certificate (certificate number GR201832002286) jointly issued by Jiangsu Provincial Science and Technology Department and so on. The certificate is valid for 3 years. From 1 January 2018 to 31 December 2020, Nanjing Panda Information Industry Co., Ltd. paid income tax at 15% of the taxable income.
4. Nanjing Panda Electromechanical Instrument Technology Co., Ltd., a second-level subsidiary of the Company, re-identifiedhigh-tech enterprise on 28 November 2018, and obtained the High-tech Enterprise Certificate (certificate number GR201832002778) jointly issued by Jiangsu Provincial Science and Technology Department and so on. The certificate is valid for 3 years. From 1 January 2018 to 31 December 2020, Nanjing Panda Electromechanical Instrument Technology Co., Ltd. paid income tax at 15% of the taxable income.
5. Jingwah Information Technology Co., Ltd., a third-level subsidiary of the Company, re-identifiedhigh-tech enterprise on 9 November 2018, and obtained the High-tech Enterprise Certificate (certificate number GR201844204258) jointly issued by Shenzhen Municipal Science and Technology Innovation Committee and so on. The certificate is valid for 3 years. From 1 January 2018 to 31 December 2020, Jingwah Information Technology Co., Ltd. paid income tax at 15% of the taxable income.

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1. 1. Nanjing Panda Electronic Equipment Co., Ltd., a second-level subsidiary of the Company, re-identifiedhigh-tech enterprise on 28 November 2018, and obtained the High-tech Enterprise Certificate (certificate number GR201832001770) jointly issued by Jiangsu Provincial Science and Technology Department and so on. The certificate is valid for 3 years. From 1 January 2018 to 31 December 2020, Nanjing Panda Electronic Equipment Co., Ltd. paid income tax at 15% of the taxable income.
   2. Shenzhen Jingjia Real Estate Management Co., Ltd., a fourth-level subsidiary of the Company, was recognized as a small-scaleprofit-making enterprise in the current period. The income of the Company was reduced to 50% of the taxable income and the enterprise income tax was paid at a rate of 20%.
   3. The subsidiary Company GALANT LIMITED registered in Hong Kong and Hong Kong Electric Group Jinghua Trading Co., Ltd. have a profit tax rate of 16.5%.
2. RETURN ON NET ASSETS AND EARNINGS PER SHARE:

	Weighted
	average	Earnings per
	return on net	share (RMB)
Profits of the reporting period	assets	Basic	Diluted
		(%)
Net profit attributable to ordinary
shareholders of the Company	1.22	0.0464	0.0464
Net profit after deducting
extraordinary profit and
loss attributable to ordinary
shareholders of the Company	0.89	0.0338	0.0338

1. Profit Distribution
   The profit appropriation plan for the year 2018 was approved at the fourteenth meeting of the ninth session of the Board of the Company and the 2018 annual general meeting of the Company,pursuant to which, a cash dividend of RMB0.80 (tax inclusive) for every ten shares was distributed on the basis of a total share capital of 913,838,529.00 shares at the end of the reporting period of 2018, with the total cash dividend distributed amounting to RMB73,107,082.32. The profit distribution plan was approved at the 2018 annual general meeting of the Company.

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1. Significant accounting policies and accounting estimate change

1. Significant accounting policies

Implementation of the Notice of the Ministry of Finance on Revising the Format of the 2019 Annual General Enterprise Financial Statements

On 30 April 2019, the Notice of the Ministry of Finance on Revising the Format of the 2019 Annual General Enterprise Financial Statements (CK [2019] No. 6) was published by the Ministry of Finance, which revised the format of general financial statements of business enterprises. Main influences incurred by implementation of such provisions by the Company are as follows:

	Examination
Contents and reasons for changes in	and approval	Influenced statement item name
accounting policies	procedure	and amount
The "notes receivables and accounts	Board approval	"Notes receivable and accounts
receivables" in the balance sheet		r e c e i v a b l e " a r e s e p a r a t e l y
are separately listed as "notes		listed as "notes receivable and
r e c e i v a b l e s " a n d " a c c o u n t s		accounts receivable". The ending
receivables"; "Notes payable and		amount of "notes receivable" is
accounts payable" are separately		RMB305,140,698.53, the initial
listed as "notes payables and		amount is RMB268,269,716.38,
accounts payables". Comparative		a n d t h e e n d i n g a m o u n t	o f
data is adjusted accordingly.		" a c c o u n t s r e c e i v a b l e "	i s

RMB1,144,041,933.70, the initial amount is RMB1,003,441,127.48; "Notes payable and accounts p a y a b l e " a r e s e p a r a t e l y listed as "notes payable and accounts payable". The ending amount of "notes payable" is RMB259,142,824.49, the initial amount is RMB187,360,370.61, and the ending amount of "notes payable" is RMB1,548,838,917.16 a n d t h e i n i t i a l a m o u n t i s RMB1,544,459,424.66.

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	Examination
Contents and reasons for changes in	and approval	Influenced statement item name
accounting policies	procedure	and amount
The "credit impairment losses" and	Board approval	"Credit impairment losses" were
"asset impairment losses" in the		R M B - 4 , 1 0 2 , 5 7 3 . 5 7	i n t h e
income statement are adjusted by		current period, and the amount
the loss as a positive number from		i n th e previou s perio d was
the loss as a negative number.		R M B - 1,018,592 . 09 ; "A s s e t
Comparative data is adjusted		i m p a i r m e n t l o s s e s "	w e r e
accordingly.		R M B - 1 3 , 2 1 0 , 3 4 3 . 2 7	i n t h e
		current period and the amount
		i n th e previou s perio d was
		RMB238,867.43.

2. Changes in significant accounting estimates

There was no change in significant accounting estimates for the Reporting Period

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1. Miscellaneous
   As at 30 June 2019, the Company provided guarantees for the subsidiaries of the Company amounting to RMB405,982,169.94, of which: RMB137,379,672.51 is guaranteed in the form of bank acceptance bill; RMB163,032,830.89 is guaranteed in the form of letter of guarantee; RMB50,000,000.00 is guaranteed in the form of credit borrowing and RMB55,569,666.54 is guaranteed in the form of letter of credit (30 June 2018: the Company provided the guarantee of RMB328,310,439.93 of which RMB99,831,296.61 is guaranteed by the Company in the form of bank acceptance bill, RMB67,216,845.53 is guaranteed in the form of letter of guarantee, RMB95,000,000.00 is guaranteed in the form of credit borrowing and RMB66,262,297.79 is guaranteed in the form of letter of credit).

By Order of the Board

Nanjing Panda Electronics Company Limited

Zhou Guixiang

Chairman

Nanjing, the People's Republic of China

29 August 2019

As at the date of this announcement, the Board comprises Executive Director: Mr.

Zhou Guixiang, Mr. Lu Qing and Mr. Xia Dechuan; Non-executive Directors: Mr. Shen Jianlong, Mr. Deng Weiming and Mr. Gao Gan; and Independent Non-executive Directors: Ms. Du Jie, Mr. Zhang Chun and Mr. Gao Yajun.

• For illustration purpose only

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