Nanjing Panda Electronics : SUMMARY OF 2020 INTERIM REPORT

August 27, 2020 at 08:02 am EDT

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 2020 INTERIM REPORT

IMPORTANT NOTICE
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 2020 (the "Reporting Period") is set out below. The financial statements contained in this report are unaudited. The summary of 2020 Interim Report is based on the full-length 2020 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 2020.

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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	dms@panda.cn	dms@panda.cn

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 2020 have been presented in accordance with the PRC Accounting Standards for Business Enterprises in this announcement.

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2.2 Major financial data of the Company (Unaudited)

		Unit: Yuan Currency: RMB
	At the end
	of the	At the end	Change from
	Reporting Period	of last year	the end of
	(30 June 2020)	(31 December 2019)	last year
			(%)
Total assets	5,866,752,702.67	6,020,147,479.47	-2.55
Net assets attributable to shareholders of the
Company	3,444,776,580.42	3,448,072,752.25	-0.10
		Corresponding
	Reporting	period of	Change from
	Period	last year	corresponding
	(January -	(January -	period of
	June 2020)	June 2019)	last year
			(%)
Net cash flow from operating activities	88,278,305.28	-302,748,167.59	N/A
Operating income	1,714,155,014.36	2,129,345,776.54	-19.50
Net profit attributable to shareholders of the
Company	12,683,154.91	42,389,523.73	-70.08
Net profit attributable to shareholders of the
Company after deducting extraordinary
profit and loss	928,618.66	30,861,450.97	-96.99
Weighted average return on net assets (%)			Decreased by 0.85
	0.37	1.22	percentage point
Basic earnings per share (RMB/share)	0.0139	0.0464	-70.08
Diluted earnings per share (RMB/share)	0.0139	0.0464	-70.08

Explanations on major accounting information and financial indicators of the Company:

The decrease in net profit attributable to shareholders of the Company and net profit attributable to shareholders of the Company after deducting extraordinary profit and loss was mainly due to the decrease of the revenue and the decline of efficiency of the Company's intelligent factories and system engineering business, resulting from the increased competition in the industry market during the period. In addition, it was also due to a certain impact on the overall production and operation of the Company caused by the outbreak of the "COVID-19" pandemic and the prevention and control measures against it.

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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)				70,788
	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	27.42	250,614,284	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	7.06	64,471,891	0	Unknown
Ltd. ("China Huarong")	legal person
Nanjing Electronics Information	State-owned	3.93	35,888,611	0	Unknown
Industrial Corporation ("NEIIC")	legal person
Guoxin Investment Co., Ltd.	State-owned	2.38	21,720,941	0	Unknown
Yang Tao (楊濤)	legal person
Domestic	0.28	2,530,000	0	Unknown
Zhao Dongling (趙東嶺)	natural person
Domestic	0.27	2,450,600	0	Unknown
	natural person
Industrial and Commercial Bank of	Others	0.23	2,098,800	0	Unknown
China - Guotai CSI Composite Index

Communication Equipment ETF

Securities Investment Fund (中國工商銀行股份有限公司-國泰中證全指通信設備交易型開放式指數證券投資基金)

Zhong zhitan (鍾志坦)	Domestic	0.20	1,849,032	0	Unknown
Cai Yan (蔡炎)	natural person
Domestic	0.19	1,709,145	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, 22,120,611 A shares and 13,768,000 H shares of the Company, representing 3.93% 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 26.98% 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:

As at the end of the Reporting Period, HKSCC (Nominees) Limited held 250,614,284 shares (including 241,655,470 H shares and 8,958,814 A shares) of the Company on behalf of several clients, representing 27.42% of the total issued share capital of the Company, of which includes 13,768,000 H shares of the Company held by NEIIC. Save as disclosed above, the Company is not aware of any individual client holding more than 5% of the total issued share capital of the Company.
On 10 January 2020, the Company received from China Huarong a written plan in relation to reduction of its shareholding in the Company. During the Reporting Period, China Huarong reduced its shareholding in the Company by 674,800 A shares in aggregate from 11 March to 16 March 2020, representing 0.07% of the total share capital of the Company. As at the end of the Reporting Period, China Huarong holds 64,471,891 A shares of the Company, representing 7.06% of total share capital of the Company. For details, please refer to the relevant announcements of the Company published in China Securities Journal, Shanghai Securities News and on the website of Shanghai Stock Exchange on 11 January, 12 May and 11 August 2020 and on the website of the Hong Kong Stock Exchange on 10 January 2020, 11 May 2020 and 10 August 2020.
On 11 August 2020, the Company received from China Huarong a written plan in relation to reduction of its shareholding in the Company. For details, please refer to the relevant announcements of the Company published in China Securities Journal, Shanghai Securities News and on the website of Shanghai Stock Exchange on 12 August 2020 and on the website of the Hong Kong Stock Exchange on 11 August 2020.

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

During the Reporting Period, there was no change in the controlling shareholders and the de facto controllers of the Company, being PEGL and China Electronics Corporation ("CEC"), respectively.

As at the end of the Reporting Period, to the best knowledge of the Company having made all reasonable enquiries, CEC confirmed that during the Reporting Period, CEC increased its shareholding in the Company by purchasing an additional 27,414,000 H shares in aggregate through its overseas wholly-owned subsidiary, CEIEC (H.K.) Limited (華電有限公司) from 14 April to 19 June 2020, representing 3.00% of the total issued capital of the Company.

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As at the date of this report, CEC held 232,782,055 A shares and 41,182,000 H shares in the Company through its subsidiaries, with 273,964,055 shares in aggregate, representing 29.98% of the total share capital of the Company. In particular, it held 22,120,611 A shares and 13,768,000 H shares in the Company through its controlling subsidiary, NEIIC, representing 3.93% in aggregate of the total issued capital of the Company; it held 210,661,444 A shares in the Company through a wholly-owned subsidiary of NEIIC, PEGL, representing 23.05% of the total issued capital of the Company; it held 27,414,000 H shares in the Company through its overseas wholly-owned subsidiary, CEIEC (H.K.) Limited, representing 3.00% of the total issued capital of the Company.

2.6 Outstanding and overdue payment of the Company's debts

Applicable ✓ N/A

MANAGEMENT DISCUSSION AND ANALYSIS
3.1 The discussion and analysis on the operation
In the first half of 2020, in response to the complicated situation of significantly increasing risks and challenges in every aspects, the Company accelerated the promotion of industry transformation and upgrade, deeply implemented a comprehensive lean management, strengthened the quality enhancement, cost deduction and efficiency improvement, focused on building its core competitiveness, advanced the high-quality and sustainable development of the Company. During the Reporting Period, the Company recorded the operating income of RMB1,714,155,000, the total profit of RMB48,191,300, and the net profit attributable to the shareholders of the parent company of RMB12,683,200.

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3.1.1Analysis of principal operations

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

	Unit: Yuan Currency: RMB
		Amount for the
		corresponding
	Amount for the	period of
Item	current period	last year	Change
			(%)
Operating income	1,714,155,014.36	2,129,345,776.54	-19.50
Operating costs	1,473,529,076.93	1,823,553,320.49	-19.19
Cost of sales	24,169,354.68	21,892,592.48	10.40
Administrative expenses	111,969,241.96	105,415,293.63	6.22
Financial expenses	897,662.47	-323,696.96	N/A
R&D expenses	82,730,115.43	103,493,120.42	-20.06
Net cash flows from operating
activities	88,278,305.28	-302,748,167.59	N/A
Net cash flows from investment
activities	56,497,866.06	-167,394,063.22	N/A
Net cash flows from financing
activities	-9,948,582.15	-27,932,923.84	N/A
Other income	8,490,572.39	5,766,281.17	47.25
Gain from change in fair value	567,858.44	2,975,260.27	-80.91
Credit impairment losses	-275,560.22	-4,102,573.57	N/A
Assets impairment losses	-3,479,946.92	-13,210,343.27	N/A
Gains on disposal of assets	126,613.83	190,885.76	-33.67
Non-operating income	7,039,751.70	2,607,172.95	170.01
Non-operating expenses	521,218.12	305,589.45	70.56

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Reasons for the changes:

Decrease of operating income: Mainly due to the increase in industrial competition, the decrease in the income from the intelligent factory and system engineering business of the Company during the period, and additionally, a certain impact on the overall production and operation of the Company caused by the outbreak of the "COVID-19" pandemic and the prevention and control measures against it;
Decrease of operating costs: Mainly due to the decrease in the income and corresponding decrease in costs from the intelligent factory and system engineering business of the Company during the period;
Increase of cost of sales: Mainly due to the increase in salary and wages expenses of the sales staff;
Increase of administrative expenses: Mainly due to increase in depreciation amortization during the period;
Increase of financial expenses: Mainly due to the period-on- period increase in exchange losses as a result of the RMB exchange rate changes;
Decrease of R&D expenses: Mainly due to the decrease in the R&D expenses related to materials, fuels and power during the period;
Increase of net cash flows from operating activities: Mainly due to cash received from sales of goods during the period;
Increase of net cash flows from investment activities: Mainly due to expiration of wealth management products purchased from banks;
Increase of net cash flows from financing activities: Mainly due to the increase in the notes discounted during the period;
Increase of other income: Mainly due to the period-on-period increase in government subsidy relating to operations activities during the period;
Decrease of gain from change in fair value: Mainly due to gains from the change in fair value of financial assets held for trading during the period;
Decrease of credit impairment losses: Mainly due to the period-on-period decrease in provision for impairment losses of financial assets during the period;

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1. Decrease of assets impairment losses: Mainly due to provision for impairment of long-term equity investments during the previous period;
2. Decrease of gains on disposal of assets: Mainly due to the decrease in gain from the disposal of non-current assets;
3. Increase of non-operating income: Mainly due to the tax prepaid in previous period been refunded during the period;
4. Increase of non-operating expenses: Mainly due to the period-on-period increase in donation expenses during the period.
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
		(%)		(%)	(%)
Notes receivable	28,725,176.72	0.49	21,780,418.49	0.36	31.89	Mainly due to the increase in
						the sales of goods settled by
	228,701,640.11	3.90				notes during the period
Prepayments	113,341,943.82	1.88	101.78	Mainly due to the advance
						payment for purchasing raw
	63,349,358.18	1.08				materials during the period
Other receivables	48,020,435.60	0.80	31.92	Mainly due to the increase in
						the deposits paid during the
	317,298,449.17	5.41				period
Contract assets	541,978,173.94	9.00	-41.46	Mainly due to the contract assets
						recognised at the beginning
						of the period were included
						in receivables during the
	30,369,601.01	0.52				period
Other current	55,089,857.84	0.92	-44.87	Mainly due to the receipt of
assets						the incremental retention tax
						credit refunded in the period
						and others under 2019 No. 39
	38,446,985.47	0.66				of Ministry of Finance
Other non-current	55,275,624.94	0.92	-30.44	Mainly due to the retention
assets						money withdrew from certain
						projects with retention period
						over one year during the
	0	0				period
Short-term loans	50,000,000.00	0.83	-100.00	Mainly due to the repayment of
						the short-term loans to the
	22,294,712.91	0.38				bank during the period
Staff salaries	39,274,102.16	0.65	-43.23	Mainly due to the payment of
payable						salaries, bonuses and related
	13,205,076.94	0.23				cost during the period
Lease liabilities	8,926,407.51	0.15	47.93	Mainly due to the increase in

the operating lease with lease period over one year

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3.2 Analysis of investments

3.2.1 Overall analysis of equity investment

In the first half of 2020, the Company cautiously made investments in fixed assets and relevant projects in a standard way in accordance with the capital expenditure budget and the actual operating conditions.

3.2.2 Analysis of major subsidiaries and investee companies

Information of major subsidiaries

			Unit: 0'000	Currency: RMB
			30 June 2020		January to June 2020
		Registered			Operating
Subsidiary	Major products or services	capital	Total assets	Net assets	income	Net profit
Nanjing Panda	Manufacture and sale of automatic	19,000.00	75,821.83	25,635.78	10,005.44	-4,553.36
Electronics Equipment	transmission equipment and
Co., Ltd	industrial robots
Nanjing Panda	Production and sale of AFC and ACC USD3,194.6435	137,540.34	46,293.07	38,659.96	2,098.86
Information Industry	systems and equipment of railway
Co., Ltd	transit, building intellectualization
	and system integration
Nanjing Panda Electronic	EMS services	USD2,000	109,977.56	54,438.51	65,554.18	2,281.50
Manufacture Co., Ltd
Nanjing Panda	Manufacture and sale of mobile	10,000.00	26,576.02	16,411.43	6,392.50	-116.96
Communications	communication, digital
Technology Co., Ltd	communication and network
	communication systems and
	products
Nanjing Panda Xinxing	Property and catering services	2,000.00	6,699.09	4,458.13	5,568.43	34.25
Industrial Co., Ltd.
Nanjing Panda	Manufacturing of general purpose	70,000.00	65,840.19	59,803.25	1,430.49	-269.60
Electronic Technology	equipment, software development,
Development Company	and property management
Limited
Shenzhen Jinghua	Research and development,	11,507.00	51,489.21	36,086.69	25,669.19	3,092.74
Electronics Co., Ltd.	manufacturing and sales of
	communication equipment and
	digital products
Chengdu Panda	SMT products	5,000.00	41,993.31	3,867.24	21,116.54	1,676.27
Electronic Technology

Co., Ltd.

Orders in the intelligent factory and system engineering business of Nanjing Panda Electronics Equipment Co., Ltd. were decreased due to the increase in industrial competition, which resulted in a significant decrease in its operating income and the net profit during the period.

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Information of major investee companies (January to June 2020) 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.	462,063.51	9,000.15	27.00%	2,430.04

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 2020.

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 2019 was considered and approved at the fourteenth meeting of the ninth session of the Board of the Company and the 2019 annual general meeting of the Company, pursuant to which, a cash dividend of RMB0.175 (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 2019, with the total cash dividend distributed amounting to RMB15,992,174.26 and the remaining profits to be carried forward to next year. The Company would not make any capitalization 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 31 March 2020, 30 June 2020 and 7 July 2020 and on the website of the Hong Kong Stock Exchange on 30 March 2020, 29 June 2020 and 6 July 2020, respectively.

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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 2020, the Company's gearing ratio (the ratio of total liabilities to total assets) was 36.85%; current liabilities amounted to RMB2,114 million; liquidity ratio was 1.96; quick ratio was 1.50; bank deposits and cash amounted to RMB999 million; and short-term bank and other loans amounted to RMB0.

According to the announcement of the National Interbank Funding Center authorized by the People's Bank of China, during the Reporting Period, as of 22 June 2020, the LPR for 1-year was 3.85%, and the LPR for more than 5-year was 4.65%; as of 20 August 2020, the LPR for 1-year was 3.85%, and the LPR for more than 5-year was 4.65%.

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.

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").
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.

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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.

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 30 March 2020 to review 2019 financial report of the Company and the summary report on audit work in 2019 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 2020 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 2020, 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.
Appointment and Removal of Auditors
At the fourteenth meeting of the ninth session of the Board, the resolution in relation to the Appointment of the Auditors for 2020 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 2020 and that their remuneration be determined within the limit of RMB2.10 million and it was agreed that the same be submitted to the 2019 annual general meeting of the Company for shareholders' consideration.
The 2019 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 2020, and authorized the Board to determine their remuneration within the limit of RMB2.10 million.

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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 31 March 2020 and 30 June 2020 and on the website of the Hong Kong Stock Exchange on 30 March 2020 and 29 June 2020.

Changes in accounting policies, accounting estimates and accounting methods compared with the previous accounting period, reasons thereof and their impact.
N/A
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
Warnings on any potential loss in accumulated net profit for the period from the beginning of the year to the end of next Reporting Period or any material changes from the corresponding period of last year and the explanations thereof
The Company's intelligent factories and system engineering business recorded a decrease in revenue and a decline in efficiency during the period, resulting from the increased competition in the industry market. In addition, it was also due to a certain impact on the production and operation of the Company caused by the outbreak of the "COVID-19" pandemic and the prevention and control measures against it. The Company forecasts that the accumulated net profit attributable to the parent company for the period from the beginning of the year to the end of the next Reporting Period will decrease by approximately 65% as compared to the corresponding period of last year.

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

Consolidated Balance Sheet 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
Asset	2020/6/30		2019/12/31
Current assets:
Cash and cash equivalents	1,194,457,090.45	1,053,869,767.19
Settlement provisions
Placements with banks and other financial
institutions
Financial assets measured at fair value through
profit or loss
Financial assets held for trading	216,037,684.93	300,469,826.49
Derivative financial assets
Notes receivable	28,725,176.72	21,780,418.49
Accounts receivable	1,024,151,761.34	996,359,257.15
Financing receivables	291,443,113.33	347,259,336.87
Advance to suppliers	228,701,640.11	113,341,943.82
Premium receivables
Reinsurance receivables
Reinsurance contract reserve receivable
Other receivables	63,349,358.18	48,020,435.60
Financial assets held under resale agreements
Inventories	756,843,882.66	816,955,476.60
Contract assets	317,298,449.17	541,978,173.94
Held-for-sale assets
Non-current assets due within one year
Other current assets	30,369,601.01	55,089,857.84

Total current assets	4,151,377,757.90		4,295,124,493.99

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Consolidated Balance Sheet (Continued) 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
Asset	2020/6/30		2019/12/31
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets
Held-to-maturity investments
Debenture investments
Other debenture investments
Long-term receivables
Long-term equity investments	300,700,543.19	276,388,843.98
Other equity instruments investments	4,052,669.32	4,035,539.29
Other non-current financial assets
Investment properties	16,683,796.23	21,096,325.77
Fixed assets	1,156,476,596.94	1,188,174,150.27
Construction in progress	37,952,333.95	31,407,899.18
Biological assets for production
Fuel assets
Right-of-use assets	15,733,585.84	12,456,669.33
Intangible assets	120,106,060.66	109,121,914.00
Development expenses
Goodwill
Long-term expenses to be amortised	10,010,779.10	11,720,569.43
Deferred income tax assets	15,211,594.07	15,345,449.29
Other non-current assets	38,446,985.47	55,275,624.94

Total non-current assets	1,715,374,944.77		1,725,022,985.48
Total assets	5,866,752,702.67		6,020,147,479.47

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Consolidated Balance Sheet (Continued) 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
Liabilities and owners' equity	2020/6/30		2019/12/31
Current liabilities:
Short-term loans			50,000,000.00
Borrowings from central bank
Customer deposits and deposits from banks and
other financial institutions
Placements from banks and other financial
institutions
Financial liabilities at fair value through profit
and loss
Financial liabilities held for trading
Derivative financial liabilities
Notes payables	208,495,356.08	234,736,827.23
Accounts payable	1,481,284,635.95	1,628,435,817.44
Advance receipts from customers	2,785,675.65	2,581,558.74
Contract liabilities	207,207,297.38	160,540,186.87
Financial assets sold under repurchase agreements
Bank charges and commissions due
Staff salaries payable	22,294,712.91	39,274,102.16
Taxes and surcharges payable	27,170,510.15	21,404,214.61
Other payables	97,248,512.33	78,425,560.86
Reinsurers due
Insurance contract reserves
Security trading of agency
Securities underwriting
Liabilities held for sale
Non-current liabilities due within one year	3,888,023.78	3,451,972.08
Other current liabilities	63,707,473.62	66,677,266.21

Total current liabilities	2,114,082,197.85		2,285,527,506.20

- 17 -

Consolidated Balance Sheet (Continued) 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited		Unit: RMB
Liabilities and owners' equity	2020/6/30	2019/12/31
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities	13,205,076.94	8,926,407.51
Long-term payables
Long-term staff salaries payables	17,894,038.34	19,767,429.75
Accrued liabilities
Deferred income	16,639,841.85	17,261,888.00
Deferred income tax liabilities	111,723.93	107,441.42
Other non-current liabilities

Total non-current liabilities	47,850,681.06	46,063,166.68

Total liabilities	2,161,932,878.91	2,331,590,672.88

- 18 -

Consolidated Balance Sheet (Continued) 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited		Unit: RMB
Liabilities and owners' equity	2020/6/30	2019/12/31
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 share
Other comprehensive income	302,001.98	289,154.46
Special reserve
Surplus reserve	258,647,274.54	258,647,274.54
General risk preparation
Undistributed profits	801,296,974.77	804,605,994.12
Subtotal equity attributable to the shareholders

of the parent company	3,444,776,580.42	3,448,072,752.25
Minority interests	260,043,243.34	240,484,054.34

Total shareholders' equity	3,704,819,823.76	3,688,556,806.59
Total liabilities and shareholders' equity	5,866,752,702.67	6,020,147,479.47

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

- 19 -

Consolidated Income Statement

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
		Amount for the	Amount for
		corresponding
Items	current period	period of last year
1.	Total operating income	1,714,155,014.36	2,129,345,776.54
	Including: Operating income	1,714,155,014.36	2,129,345,776.54
	Interest income
	Premiums earned
	Fee and commission income
2.	Total operating cost	1,705,633,918.28	2,064,686,338.19
	Including: Operating costs	1,473,529,076.93	1,823,553,320.49
	Interest expenses
	Fee and commission expense
	Surrenders
	Net payment from indemnity
	Net provisions for insurance
	contract
	Insurance policy dividend paid
	Reinsurance cost	12,338,466.81
	Tax and surcharges	10,655,708.13
	Selling expenses	24,169,354.68	21,892,592.48
	Administrative expenses	111,969,241.96	105,415,293.63
	R&D costs	82,730,115.43	103,493,120.42
	Financial expenses	897,662.47	-323,696.96
	Including: Interest expense	682,708.34	2,305,605.11
	Interest income	4,793,080.75	5,294,211.03
	Add: Other gains	8,490,572.39	5,766,281.17
	Investment income (losses are	27,722,156.71
	represented by "-")	32,100,053.56
	Including: Investment income of
	associates and joint	24,311,699.21
	ventures	24,716,024.79
	Income on hedging the net exposure
	(losses are represented by "-")
	Gains arising from changes in fair	567,858.44
	value (losses are represented by "-")	2,975,260.27
	Credit impairment loss (losses are	-275,560.22
	represented by "-")	-4,102,573.57
	Asset impairment loss (losses are	-3,479,946.92
	represented by "-")	-13,210,343.27
	Gains on disposal of assets (losses are	126,613.83
	represented by "-")	190,885.76
	Exchange gain (losses are represented
	by "-")

- 20 -

Consolidated Income Statement (Continued)

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
	Amount for the	Amount for
	corresponding
Items	current period	period of last year

3. Operating profit (losses are represented by

"-")	41,672,790.31	88,379,002.27
Add: Non-operating income	7,039,751.70	2,607,172.95
Less: Non-operating expenses	521,218.12	305,589.45

4. Total profit (total losses are represented by

	"-")	48,191,323.89	90,680,585.77
	Less: Income tax expense	15,948,979.98	20,907,362.66
5.	Net profit (net losses are represented by "-")	32,242,343.91	69,773,223.11

Classified by the business continuity 1. Net profit for going concern (net

		losses are represented by "-")	32,242,343.91	69,773,223.11
	2.	Net profit for discontinued
		operation (net losses are
		represented by "-")
	(2) Classified by the attribution of the
		ownership	19,559,189.00
	1.	Minority interests	27,383,699.38
	2.	Net Profit attributable to the
		equity shareholders of the parent	12,683,154.91
		company	42,389,523.73
6.	Net other comprehensive income after tax	12,847.52	4,694.04
	Net other comprehensive income after tax
	attributable to the equity shareholders of the	12,847.52
	parent company	4,694.04

Other comprehensive income which will not be reclassified subsequently to

profit and loss

12,847.52

4,694.04

Changes as a result of remeasurement of defined benefit plan
Other comprehensive income accounted for using equity method which will not be reclassified to profit and loss
Changes in fair value of other

	equity instruments investment	12,847.52	4,694.04
4.	Changes in fair value of the
	enterprise's own credit risk

- 21 -

Consolidated Income Statement (Continued)

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
			Amount for the	Amount for
			corresponding
Items		current period period of last year
	(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.	Gains or losses arising from
		changes in fair value of
		available-for-sale financial
		assets
	3.	Gains or losses arising from
		reclassification of held-
		to-maturity investments as
		available- for-sale financial
		assets
	4.	Changes in fair value of other debt
		investment
	5.	A mount of financial assets
		reclassified to other
		comprehensive income
	6.	Provision for credit impairment of
		other debt investment
	7.	Cash flow hedging reserve
	8.	Translation difference of financial
		statements in foreign currencies
	9.	Others
	Net other comprehensive income after tax
	attributable to minority shareholders
7.	Total comprehensive income	32,255,191.43	69,777,917.15
	Total comprehensive income attributable to	12,696,002.43
	the equity holders of the parent company	42,394,217.77
	Total comprehensive income attributable to	19,559,189.00
	minority shareholders	27,383,699.38

8. Earnings per share:

(1)	Basic earnings per share (RMB/share)	0.0139	0.0464
(2)	Diluted earnings per share (RMB/share)	0.0139	0.0464
			Head of the Accounting
Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang

- 22 -

- 23 -

Consolidated Statement of Changes in Shareholders' Equity

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited

Unit: RMB

Amount for the Period

Equity attributable to the shareholders of parent company

Items

Other equity instrument

Less:

Other

Total

Preference

Perpetual

Capital

treasury

comprehensive

Special

Surplus

General

Undistributed

Minority

shareholders'

capital

bonds

Others

reserve

income

reserve

risk reserve

profit

interests

equity

Balance at the end of prior year

913,838,529.00

1,470,691,800.13

289,154.46

258,647,274.54

804,605,994.12

240,484,054.34

3,688,556,806.59

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

289,154.46

258,647,274.54

804,605,994.12

240,484,054.34

3,688,556,806.59

Changes of current year (decreases are represented

	by "-")	-	12,847.52	-3,309,019.35	19,559,189.00	16,263,017.17
(I)	Total comprehensive income	-	12,847.52	12,683,154.91	19,559,189.00	32,255,191.43

Share capital contributed or withdrew by

		shareholders	-
	1.	Share capital contributed by shareholders	-
	2.	Capital contributed by holders of other equity	-
		instruments
	3.	Amount of share-based payment included	-
	4.	Others	-
(III)	Profit distribution	-	-15,992,174.26	-15,992,174.26
	1.	Appropriation of surplus reserve	-
	2.	Appropriation of general risk reserve	-
	3.	Appropriation of profit to shareholders	-	-15,992,174.26	-15,992,174.26
	4.	Others	-
(IV)	Internal carry-over within shareholders' equity	-
	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. Other comprehensive income carried over to retained earnings

		6.	Others	-
	(V)	Appropriation and application of special reserve	-
		1.	Appropriation of special reserve	-
		2.	Application of special reserve	-
	(VI)	Others	-
IV.	Balance at the end of the year	913,838,529.00	1,470,691,800.13	302,001.98	258,647,274.54	801,296,974.77	260,043,243.34	3,704,819,823.76

- 24 -

Consolidated Statement of Changes in Shareholders' Equity (Continued)

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited

Unit: RMB

Amount for the corresponding period of last year

Equity attributable to the shareholders of parent company

Items

Other equity instrument

Less:

Other

Total

Preference

Perpetual

Capital

treasury

comprehensive

Special

Surplus

General

Undistributed

Minority

shareholders'

capital

bonds

Others

reserve

income

reserve

risk reserve

profit

interests

equity

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

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

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

27,383,699.38

-3,329,165.17

(I)

Total comprehensive income

4,694.04

42,389,523.73

27,383,699.38

69,777,917.15

Share capital contributed or withdrew by shareholders
1. Share capital contributed by shareholders
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

Appropriation of surplus reserve
Appropriation of general risk reserve

3.	Appropriation of profit to shareholders	-73,107,082.32	-73,107,082.32
4.	Others

(IV) Internal carry-over within shareholders' equity

1. Transfer of capital reserve to share capital
2. Transfer of surplus reserve to share capital
3. Surplus reserve to cover losses
4. Carry-overrecount changes in net liabilities or net assets of benefit plan
5. Others
Appropriation and application of special reserve
1. Appropriation of special reserve
2. Application of special reserve

	(VI) Others
IV.	Balance at the end of the year	913,838,529.00	1,470,691,800.13	196,207.91	258,647,274.54	794,337,623.27	250,837,761.28	3,688,549,196.13

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

Consolidated Cash Flow Statement

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited		Unit: RMB
		Amount for the		Amount for
			corresponding
Items	current period	period of last year
1.	Cash flows from operating activities
	Cash received from the sale of goods and	1,555,368,670.30
	rendering of services	1,917,822,585.46
	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 cash amount of reinsurance business
	Net increase in deposits of the insured and
	investment
	Net increase in disposal of financial assets at
	fair value through profit or loss
	Cash received from interests, fees and
	commissions
	Net increase in placements from banks and
	other financial institutions
	Net increase in repurchasing	19,266,637.31
	Refunds of taxes	36,995,137.15
	Cash received relating to other operating	145,686,152.79
	activities	135,307,177.54
	Sub-total of cash inflows from operating
	activities	1,720,321,460.40		2,090,124,900.15
	Cash paid on purchase of goods and services	1,200,762,009.37
	received		1,948,079,929.87
	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
	Cash paid for interest, fees and commissions
	Cash paid for policy dividends	195,909,517.10
	Cash paid to and on behalf of employees		261,894,614.47
	Cash paid for all types of taxes	56,899,545.18		76,227,262.45
	Cash paid relating to other operating activities	178,472,083.47		106,671,260.95
	Sub-total of cash outflows from operating
	activities	1,632,043,155.12		2,392,873,067.74
	Net cash flows generated from operating
	activities	88,278,305.28		-302,748,167.59

- 25 -

Consolidated Cash Flow Statement (Continued)

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited		Unit: RMB
		Amount for the		Amount for
			corresponding
Items	current period	period of last year
2.	Cash flows from investing activities:
	Cash received from disposal and returns of
	investments	4,057,102.17
	Cash received from return on investments	29,347,027.95
	Net cash received from the disposal of fixed
	assets, intangible assets and other long-term	304,182.90
	assets	3,191,048.10
	Net cash received from disposal of subsidiaries
	and other operating entities
	Cash received relating to other investing	692,394,283.50
	activities	860,000,000.00
	Sub-total of cash inflows from investing
	activities	696,755,568.57		892,538,076.05
	Cash paid on purchase of fixed assets,
	32,863,419.01
	intangible assets and other long-term assets		69,932,139.27
	Cash paid for investments
	Net increase in secured loans
	Net cash paid on acquisition of subsidiaries
	and other operating entities	607,394,283.50
	Cash paid relating to other investing activities		990,000,000.00
	Sub-total of cash outflows from investing
	activities	640,257,702.51		1,059,932,139.27
	Net cash flows generated from investing

	activities	56,497,866.06		-167,394,063.22

- 26 -

Consolidated Cash Flow Statement (Continued)

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited		Unit: RMB
		Amount for the		Amount for
			corresponding
Items	current period	period of last year
3.	Cash flows from financing activities:
	Cash received from investment
	Including: Cash received by subsidiaries
	from minority shareholders'
	investment
	Cash received from borrowings			95,000,000.00
	Cash received from issuing bonds
	Cash received relating to other financing	43,570,096.40
	activities	19,500,580.63
	Sub-total of cash inflows from financing
	activities	43,570,096.40		114,500,580.63

	Cash paid on repayment of borrowings	50,000,000.00		140,000,000.00
	Cash paid on distribution of dividends or	682,708.34
	profits, or interests expenses		2,305,605.11
	Including: dividend and profit paid to minority
	shareholders by subsidiaries	2,835,970.21
	Cash paid on other financing activities		127,899.36
	Sub-total of cash outflows from financing
	activities	53,518,678.55		142,433,504.47
	Net cash flows generated from financing

	activities	-9,948,582.15		-27,932,923.84

4. Effect of fluctuations in exchange rates on

	cash and cash equivalents	1,321,800.21	-1,068,186.26
5.	Net increase in cash and cash equivalents	136,149,389.40	-499,143,340.91
	Add: balance of cash and cash equivalents at	863,141,377.23
	the beginning of the period	1,292,114,192.80

6. Balance of cash and cash equivalents at the

end of the period		999,290,766.63	792,970,851.89
		Head of the Accounting
Legal representative:	Chief Accountant:	Department:
Xia Dechuan	Hu Dali	Liu Xianfang

- 27 -

Balance Sheet 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
Assets	2020/6/30		2019/12/31
Current assets:
Cash and cash equivalents	98,366,641.29	59,376,665.62
Financial assets measured at fair value through
profit and loss
Financial assets held for trading			120,011,835.62
Derivative financial assets
Notes receivables
Accounts receivable	82,395,509.82	77,883,947.57
Financing receivables	3,000,000.00	6,000,000.00
Prepayments	3,342,100.17	1,623,591.01
Other receivables	462,592,804.51	395,937,554.47
Inventories	25,903,550.12	22,621,153.30
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets	5,930,017.75	27,552,360.61

Total current assets	681,530,623.66		711,007,108.20

- 28 -

Balance Sheet (Continued) 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
Assets	2020/6/30		2019/12/31
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Debenture investments
Other debenture investments
Long-term receivables
Long-term equity investments	1,734,519,244.99	1,710,218,840.58
Other equity instruments investments	4,052,669.32	4,035,539.29
Other non-current financial assets
Investment properties	158,428,746.99	159,384,219.01
Fixed assets	293,297,157.93	302,786,588.45
Construction in progress	2,319,713.81	2,319,713.81
Biological assets for production
Fuel assets
Right-of-use assets
Intangible assets	11,590,121.53	12,090,267.24
Development expenses
Goodwill
Long-term expenses to be amortised	3,523,267.53	3,922,128.00
Deferred income tax assets
Other non-current assets

Total non-current assets	2,207,730,922.10		2,194,757,296.38
Total assets	2,889,261,545.76		2,905,764,404.58

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

- 29 -

Balance Sheet (Continued) 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
Liabilities and shareholders' equity	2020/6/30		2019/12/31
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair value through
profit or loss
Financial liabilities held for trading
Derivative financial liabilities
Notes payables	8,217,113.84	2,525,779.62
Accounts payable	50,815,726.00	63,661,767.44
Advance receipts from customers			160,842.29
Contract liabilities	4,129,040.00	157,964.60
Staff salaries payable	1,686,495.50	2,134,066.65
Taxes payable	2,257,680.25	1,685,195.08
Other payables	131,191,410.43	119,765,500.53
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities			20,535.40

Total current liabilities	198,297,466.02		190,111,651.61

- 30 -

Balance Sheet (Continued) 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
Liabilities and shareholders' equity	2020/6/30		2019/12/31
Non-current liabilities:
Long-term loans
Bonds payables
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long term staff salaries payable	2,199,894.87	1,961,534.25
Accrued liabilities
Deferred income
Deferred income tax liabilities	100,667.34	96,384.83
Other non-current liabilities

Total non-current liabilities	2,300,562.21		2,057,919.08

Total liabilities	200,598,028.23		192,169,570.69

- 31 -

Balance Sheet (Continued) 2020/6/30

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
Liabilities and shareholders' equity	2020/6/30		2019/12/31
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	302,001.98	289,154.46
Special reserve
Surplus reserve	258,647,274.54	258,647,274.54
Undistributed profits	81,004,877.73	105,949,041.61

Total shareholders' equity	2,688,663,517.53		2,713,594,833.89
Total liabilities and shareholders' equity	2,889,261,545.76		2,905,764,404.58

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

- 32 -

Income Statement

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
			Amount for
		Amount for the	corresponding
Items	current period	period of last year
1.	Total operating income	40,444,561.03	35,979,155.19
	Less: Operating costs	19,153,274.41	19,445,018.71
	Business taxes and surcharge	4,384,606.92	2,194,620.77
	Selling expenses	1,557,866.74	1,026,123.63
	Administrative expenses	52,583,629.17	45,751,952.85
	R&D costs	8,335,095.66	9,966,410.41
	Financial expenses	-4,934,265.71	-1,177,208.75
	Including: Interest expense
	Interest income	324,305.23	865,310.60
	Add: Other gains	165,830,09	25,993.99
	Investment income (losses are
	represented by "-")	25,760,703.16	31,318,523.30
	Including: Investment income of
	associates and joint
	ventures	24,300,404.41	24,613,457.41
	Income on hedging the net exposure
	(losses are represented by "-")
	Income from change in fair value (losses
	are represented by "-"))	-11,835.62	2,169,095.89
	Credit impairment loss
	Assets impairment loss		-13,188,717.99
	Gains on disposal of assets (losses are
	represented by "-")	9,680.10	-32,467.60

2. Operating profit (losses are represented by

"-")	-14,711,268.43	-20,935,334.84
Add: Non-operating income	6,109,278.81
Less: Non-operating expenses	350,000.00	204,500.00

3. Total profit (total losses are represented by

"-")

-8,951,989.62

-21,139,834.84

Less: Income tax expense

- 33 -

Income Statement (Continued)

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
			Amount for
		Amount for the	corresponding
Items	current period	period of last year
4.	Net profit (net losses are represented by "-")	-8,951,989.62	-21,139,834.84
	(1) Net profit for going concern (net losses
	are represented by "-")	-8,951,989.62	-21,139,834.84

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

Net other comprehensive income after tax

12,847.52

4,694.04

Other comprehensive income which will not be reclassified subsequently to

profit and loss

12,847.52

4,694.04

Changes as a result of remeasurement of defined benefit plan
Other comprehensive income accounted for using equity method which will not be reclassified to profit and loss
Changes in fair value of other equity

instruments investment

12,847.52

4,694.04

1. Changes in fair value of the enterprise's own credit risk
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. Gains or losses arising from changes in fair value of available-for-sale financial assets
3. Gains or losses arising from reclassification of held- to-maturity investments as available- for-sale financial assets
4. Changes in fair value of other debt investment
5. Amount of financial assets
  reclassified to other comprehensive income

- 34 -

Income Statement (Continued)

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
				Amount for
			Amount for the	corresponding
Items		current period period of last year
	6.	Provision for credit impairment of
		other debt investment
	7.	Cash flow hedging reserve
	8.	Translation difference of financial
		statements in foreign currencies
	9.	Others
	Net other comprehensive income after tax
	attributable to minority shareholders
6.	Total comprehensive income	-8,939,142.10	-21,135,140.80

7. Earnings per share:

Basic earnings per share
Diluted earnings per share

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

- 35 -

- 36 -

Statement of Changes in Shareholders' Equity

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited

Unit: RMB

Amount for the current period

Other equity instrument

Less:

Other

Total

Preference

Perpetual

Capital

treasury

comprehensive

Special

Surplus

General risk

Undistributed

shareholders'

Items

capital

bonds

Others

reserve

income

reserve

profit

equity

I. Balance at the end of prior year

913,838,529.00

1,434,870,834.28

289,154.46

258,647,274.54

105,949,041.61

2,713,594,833.89

Add: Changes in accounting policies

Error correction of previous period

Others

Balance at the beginning of current

year

913,838,529.00

1,434,870,834.28

289,154.46

258,647,274.54

105,949,041.61

2,713,594,833.89

Changes of current year (decreases are

	represented by "-")	12,847.52	-24,944,163.88	-24,931,316.36
(I)	Total comprehensive income	12,847.52	-8,951,989.62	-8,939,142.10

Share capital contributed or withdrew by shareholders
1. Share capital contributed by shareholders
2. Capital contributed

by holders of other equity instruments

Amount of share-based payment included
Others

(III)

Profit distribution

-15,992,174.26

Appropriation of surplus reserve
Appropriation of general risk reserve
Appropriation of profit

		to shareholders	-15,992,174.26	-15,992,174.26
	4.	Others
(IV)	Internal carry-over within
		shareholders' equity

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. Other comprehensive income carried over to retained earnings
6. Others
Appropriation and application of special reserve
1. Appropriation of special reserve
2. Application of special

reserve

(VI) Others

IV.	Balance at the end of the year	913,838,529.00	1,434,870,834.28	302,001.98	258,647,274.54	81,004,877.73	2,688,663,517.53

- 37 -

Statement of Changes in Shareholders' Equity (Continued)

January - June 2020

Prepared by: Nanjing Panda Electronics Company Limited

Unit: RMB

Amount for corresponding period of last year

Other equity instrument

Less:

Other

Total

Preference

Perpetual

Capital

Items

treasury

comprehensive

Special

Surplus

General risk

Undistributed

shareholders'

capital

bonds

Others

reserve

income

reserve

profit

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

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

Changes of current year (decreases are

	represented by "-")	4,694.04	-94,246,917.16	-94,242,223.12
(I)	Total comprehensive income	4,694.04	-21,139,834.84	-21,135,140.80

Share capital contributed or withdrew by shareholders
1. Share capital contributed by shareholders
2. Capital contributed

by holders of other equity instruments

Amount of share-based payment included
Others

(III)

Profit distribution

-73,107,082.32

Appropriation of surplus reserve
Appropriation of general risk reserve
Appropriation of profit

		to shareholders	-73,107,082.32	-73,107,082.32
	4.	Others
(IV)	Internal carry-over within
		shareholders' equity

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. Other comprehensive income carried over to retained earnings
6. Others
Appropriation and application of special reserve
1. Appropriation of special reserve
2. Application of special

reserve

(VI) Others
IV. Balance at the end of the year	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


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

Cash Flow Statement

January-June 2020

Prepared by: Nanjing Panda Electronics Company Limited		Unit: RMB
					Amount for
		Amount for the		corresponding
Items	current period	period of last year
1.	Cash flows from operating activities
	Cash received from the sale of goods and
	rendering of services	42,174,758.90	31,358,826.06
	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 cash amount of reinsurance business
	Net increase in deposits of the insured and
	investment
	Net increase in disposal of financial assets
	held for trading
	Cash received from interests, fees and
	commissions
	Net increase in placements from banks and
	other financial institutions
	Net increase in repurchasing
	Refunds of taxes
	Cash received relating to other operating
	activities	148,931,577.34	23,617,416.01
	Sub-total of cash inflows from operating

	activities	191,106,336.24		54,976,242.07

- 38 -

Cash Flow Statement (Continued)

January-June 2020

Prepared by: Nanjing Panda Electronics Company Limited		Unit: RMB
				Amount for
		Amount for the		corresponding
Items	current period	period of last year
	Cash paid on purchase of goods and services
	received	20,147,602.22	18,722,950.81
	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
	Cash paid for interest, fees and commissions
	Cash paid for policy dividends
	Cash paid to and on behalf of employees	44,180,444.25	50,093,202.73
	Cash paid for all types of taxes	6,365,304.04	3,792,973.03
	Cash paid relating to other operating activities	203,141,392.76	73,226,772.04
	Sub-total of cash outflows from operating

	activities	273,834,743.27	145,835,898.61
	Net cash flows generated from operating

	activities	-82,728,407.03	-90,859,656.54
2.	Cash flows from investing activities:


	Cash received from disposal and returns of
	investments
	Cash received from return on investments	1,460,298.75	25,564,905.44
	Net cash received from the disposal of fixed
	assets, intangible assets and other long-term
	assets	34,480.25
	Net cash received from disposal of subsidiaries
	and other operating entities
	Cash received relating to other investing
	activities	390,000,000.00	670,000,000.00
	Sub-total of cash inflows from investing

	activities	391,494,779.00	695,564,905.44

- 39 -

Cash Flow Statement (Continued)

January-June 2020

Prepared by: Nanjing Panda Electronics Company Limited		Unit: RMB
				Amount for
		Amount for the		corresponding
Items	current period	period of last year
	Cash paid on purchase of fixed assets,
	intangible assets and other long-term assets	2,203,411.20
	Cash paid for investments
	Net cash paid on acquisition of subsidiaries
	and other operating entities
	Cash paid relating to other investing activities	270,000,000.00	730,000,000.00
	Sub-total of cash outflows from investing

	activities	272,203,411.20	730,000,000.00
	Net cash flows generated from investing

	activities	119,291,367.80	-34,435,094.56
3.	Cash flows from financing activities:


	Cash received from investment
	Including: Cash received by subsidiaries
	from minority shareholders'
	investment

Cash received from borrowings Cash received from issuing bonds Cash received relating to other financing

activities

Sub-total of cash inflows from financing activities

- 40 -

Cash Flow Statement (Continued)

January-June 2020

Prepared by: Nanjing Panda Electronics Company Limited	Unit: RMB
		Amount for
	Amount for the	corresponding
Items	current period	period of last year

Cash paid on repayment of borrowings Cash paid on distribution of dividends or

profits, or interests expenses

Including: dividend and profit paid to minority shareholders by subsidiaries

Cash paid on other financing activities

Sub-total of cash outflows from financing activities

Net cash flows from financing activities

4. Effect of fluctuations in exchange rates on

	cash and cash equivalents	91.69
5.	Net increase in cash and cash equivalents	36,563,052.46	-125,294,751.10
	Add: balance of cash and cash equivalents at
	the beginning of the period	56,919,306.88	236,485,704.31

6. Balance of cash and cash equivalents at the

end of the period			93,482,359.34	111,190,953.21


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

- 41 -

The following is only the financial part:

Unless otherwise stated, all amounts are denominated in RMB Current period: January to June 2020

Preceding period: January to June 2019

Balance at the end of last year/Opening balance: 31 December 2019

Closing balance: 30 June 2020

NOTES:

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.

Going concern
For the 12 months since the end of the reporting period, the Company has ability to continue as a going concern and there's no significant risk affecting its ability to continue as a going concern.

Segment information
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 transfer price between different segments is based on the actual transaction price, and cost indirectly assumed by each segment is allocated in accordance of the corresponding proportion. Assets are allocated in accordance of business performance and location. Segment liabilities includes the liabilities produced by business activities which belongs to its own segment. If the costs related to a joint liability, the liability would be allocated to different segments at the proportion.
Non-current assets are divided into different areas and do not include available- for-sale financial assets and deferred income tax assets. All the non-current assets of the Company are located in the China Mainland.

- 42 -

- 43 -

		Electronic	Intelligent
	Intelligent city	manufacturing	manufacturing			Elimination
Item	industry	service	industry	Other products	Undistributed	among segments	Total
Trade income from third party	670,623,745.03	928,765,424.26	87,810,213.74	26,955,631.33			1,714,155,014.36
Trade income between segments	38,692,871.88	45,347,605.26	18,709,711.37	17,571,226.41		-120,321,414.92
Investment income from
associated enterprises and
joint ventures		11,294.80			24,300,404.41		24,311,699.21
Assets impairment loss	-24,812.52	3,557,062.49		-52,303.05			3,479,946.92
Credit impairment loss	-1,075,790.04	-8,649.74	1,360,000.00				275,560.22
Depreciation and amortisation
expense	6,400,191.49	22,537,265.33	5,822,102.96	15,108,434.89	8,774,994.26		58,642,988.93
Total profit	33,660,477.93	71,139,705.69	-45,533,585.42	-15,118,091.72	5,284,725.10	-1,241,907.69	48,191,323.89
Income tax expense	2,306,330.39	13,642,649.59					15,948,979.98
Net profit	31,354,147.54	57,497,056.10	-45,533,585.42	-15,118,091.72	5,284,725.10	-1,241,907.69	32,242,343.91
Total assets	1,988,461,665.51	2,081,075,799.31	823,754,701.44	714,496,939.69	2,891,223,933.16	-2,632,260,336.44	5,866,752,702.67
Total liabilities	1,176,477,710.85	1,076,972,137.26	509,591,083.92	151,097,116.85	162,214,663.07	-914,419,833.04	2,161,932,878.91
Other non-cash expense beside
depreciation and amortisation
expense
Long term equity investment
in associated enterprises and
joint ventures		1,966,844.56			298,733,698.63		300,700,543.19
Increase in other non-current
assets besides long-term equity
investment	-18,732,081.07	4,001,019.96	2,249,030.21	-6,987,467.13	-10,813,037.61	-3,677,204.28	-33,959,739.92

(IV) Accounts receivable

1. Accounts receivable shown by aging

			Balance at the
Aging	Closing balance		end of last year
Within 1 year (including 1 year)	824,432,778.48	888,517,226.88
Including: 0-6 months	715,891,316.49	831,972,710.15
7-12 months	108,541,461.99	56,544,516.73
1-2 years	104,073,710.47	71,782,021.94
2-3 years	98,779,112.97	37,383,185.91
3-4 years	10,160,092.64	14,855,019.84
4-5 years	24,275,594.60	21,275,141.86
Over 5 years	8,870,606.90	8,724,891.67
Subtotal	1,070,591,896.06	1,042,537,488.10
Less: bad debt provision	46,440,134.72		46,178,230.95
Total	1,024,151,761.34	996,359,257.15

2. Accounts receivable disclosed by classification of bad debt provisions

						Closing balance									Balance at the end of last year
		Carrying Amount	Bad debt Provision	Carrying Value		Carrying Amount	Bad debt Provision	Carrying Value
								Provision									Provision
Type		Value	Percentage	Value	percentage					Value	Percentage	Value	percentage
			(%)			(%)							(%)			(%)
Accounts receivable
with individual
accrual	72,395,277.10	6.76		25,427,733.34	35.12	46,967,543.76		85,612,136.43		8.21		26,441,239.05		30.88		59,170,897.38
Accounts receivable
accruing bad
debt provision
in credit risk
characteristic
portfolio	998,196,618.96	93.24		21,012,401.38	2.11	977,184,217.58		956,925,351.67		91.79		19,736,991.90		2.06		937,188,359.77
Among which:
Aging portfolio	570,378,952.62	53.28		20,754,884.75	3.64	549,624,067.87		520,032,228.45		49.88		19,479,475.27		3.75		500,552,753.18
Other combinations	427,817,666.34	39.96		257,516.63	0.06	427,560,149.71		436,893,123.22		41.91		257,516.63		0.06		436,635,606.59

Total	1,070,591,896.06	100.00		46,440,134.72			1,024,151,761.34	1,042,537,488.10	100.00	46,178,230.95			996,359,257.15

- 44 -

Single item of bad debt provision:

			Closing balance
	Carrying	Bad debt	Provision
Name	amount	provision	percentage	Reasons for provision
				(%)
NARI Technology Co., Ltd.	39,702,870.90		4,502,747.19	11.34	Expected partly not to be
					recovered
Nanjing Yougete Communication	14,275,594.00		14,275,594.00	100.00	Expected not to be
Equipment Co., Ltd.					recovered
Jiangsu Cable Network Development	5,284,000.00		696,600.00	13.18	Expected partly not to be
Co. Ltd. Sihong Branch					recovered
Bwton Technology Co., Ltd.	4,560,000.00		675,568.97	14.82	Expected partly not to be
					recovered
China Cable Television Network Co.,	2,297,700.00		326,410.00	14.21	Expected partly not to be
Ltd. Hainan Branch					recovered
Information Department of XX Military	2,023,000.00		2,023,000.00	100.00	Expected not to be
Region Command					recovered
Zhejiang Bajun Plastic Industry Co., Ltd.	1,600,000.00		1,600,000.00	100.00	Expected not to be
					recovered
Beijing Zhonghua original technology	995,000.00		149,250.00	15.00	Expected partly not to be
Co., Ltd.					recovered
Changzhou Hengcheng Plastic	512,258.90		512,258.90	100.00	Expected not to be
Machinery Co., Ltd.					recovered
Jabil Circuit (Wuxi) Co., Ltd.	497,198.08		38,379.29	7.72	Expected partly not to be
					recovered
Lianyungang Yintai Real Estate	424,000.00		424,000.00	100.00	Expected not to be
Development Co., Ltd.					recovered
Subtotal of other petty amount	223,655.22		203,924.99	91.18	Expected partly not to be
					recovered

Total	72,395,277.10		25,427,733.34

- 45 -

Bad debt provision by portfolio:

Provision by portfolio: Aging portfolio

			Closing balance
		Accounts		Bad debt	Provision
Name		receivable		Provision	percentage
					(%)
Within 1 year (inclusive)	519,990,450.01	4,907,333.71
Among which: 0-6 months	421,843,775.73
7-12 months	98,146,674.28	4,907,333.71	5.00
1-2 years past due	13,761,561.20	1,376,156.12	10.00
2-3 years past due	16,522,083.10	2,478,312.47	15.00
3-4 years past due	7,873,478.32	2,362,043.50	30.00
4-5 years past due	5,200,682.07	2,600,341.04	50.00
Over 5 years	7,030,697.92	7,030,697.92	100.00

Total	570,378,952.62	20,754,884.75


Provision by portfolio: Other combinations
			Closing balance
		Accounts		Bad debt	Provision
Name		receivable		Provision	percentage
					(%)
Related parties portfolio	427,817,666.34	257,516.63	0.06

Total	427,817,666.34	257,516.63

- 46 -

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

				Change amount for current period
	Balance at the	Closing	Accrual of	Return or	Transfer or
Type	end of last year	balance	bad debts	recovery	write-off
Single item of bad debt provision	26,441,239.05	1,398,379.29	2,411,885.00		25,427,733.34
Receivables with provision for bad debts
based on credit risk characteristics	19,736,991.90	2,087,572.93	812,163.45		21,012,401.38
Among them: Aging portfolio	19,479,475.27	2,087,572.93	812,163.45		20,754,884.75
Related parties portfolio	257,516.63						257,516.63

Total	46,178,230.95		3,485,952.22	3,224,048.45		46,440,134.72

The significant amount of provision return or recovery of bad debts in the period:

	Amount	Reason for bad debt	Reason for
	returned or	provision and the	return or
Name of debtors	recovered	rationality	recovery	Approach
Beijing Zhonghua original	1,005,750.00	Individual portfolio	Debt collection	Cash and
technology Co., Ltd.				Bank
Xinjiang Uygur Autonomous	1,290,542.09	Individual portfolio	Debt collection	Cash and
Region Press and				Bank
Publications Bureau of
Radio and Television
Summary of other small sum	927,756.36	Aging, Individual	Debt collection	Cash and
		portfolio, related		Bank
		party
Total	3,224,048.45

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
		(%)
Chengdu CEC-Panda Display Technology
Co.,Ltd.	192,781,119.92	18.01
Nanjing CEC-Panda Flat Panel Technology
Co., Ltd	72,577,118.99	6.78
Nanjing Panda Handa Technology Company
Limited	62,918,640.78	5.88			11,242.63
Chengdu Rail Transit Group Co, Ltd.	58,178,565.20	5.43
Nanjing CEC-Panda LCD Technology Co.,
Ltd.	48,350,446.16		4.52
Total	434,805,891.05	40.62			11,242.63

At the end of the period, the Company had no derecognized accounts receivable due to the transfer of financial assets
At the end of the period, the Company had no transferred receivables or continued to be involved in the amount of assets and liabilities
Overdue receivables at the end of the period

Items	Closing balance
Account not overdue or impaired	872,252,975.36
Overdue but not impaired amount - within 3 months	32,413,454.86
Overdue but not impaired amount - over 3 months	119,485,331.12

Total	1,024,151,761.34

- 48 -

(V) 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		4,052,669.32	4,035,539.29
Total	4,052,669.32	4,035,539.29

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	income	income	earnings
Jiangsu Research and Design
Institute Of Urban Rail Transit					Non-transactional
Co., Ltd		402,669.32			investment

(VI) Contract assets

1. Details of contract assets

			Closing balance				Closing balance at the end of last year
				Impairment					Impairment
Item	Carrying amount		provision	Carrying value	Carrying amount		provision	Carrying amount
Intelligent factory	206,241,858.64	2,150,369.83		204,091,488.81		371,864,195.95	2,150,369.83	369,713,826.12
Intelligent traffic	32,463,300.16				32,463,300.16		90,869,620.80		90,869,620.80
Intelligent construction	81,282,593.38	538,933.18		80,743,660.20		80,743,660.20	538,933.18	80,204,727.02
Information network
equipment and consumer
electronics								1,190,000.00		1,190,000.00

Total	319,987,752.18	2,689,303.01		317,298,449.17		544,667,476.95	2,689,303.01	541,978,173.94

- 49 -

2. Amount and reasons for significant changes in carrying value during the reporting period

	Changed
Item	amount	Reason of changes
Intelligent factory	-165,622,337.31	Transfer of contract
		assets recognized at the
		beginning of the year
		into account receivables
Intelligent traffic	-58,406,320.64	Transfer of contract
		assets recognized at the
		beginning of the year
		into account receivables
Intelligent construction	538,933.18	Amount increased
		due to the change
		of measurement of
		performance progress
Information network	-1,190,000.00	Transfer of contract
equipment and consumer		assets recognized at the
electronics		beginning of the year
		into account receivables

Total	-224,679,724.77

3. Provision for impairment of contract assets in the current period

	Closing
	balance
	at the end of		Provision in		Reversal in	Written-off in	Closing
Item	last year	current period	current period	current period		balance Reasons
Intelligent factory	2,150,369.83						2,150,369.83
Intelligent construction	538,933.18							538,933.18
Total	2,689,303.01						2,689,303.01

- 50 -

(VII) Accounts payable

1. List of accounts payable

Classified by aging based on their recording dates:

			Closing balance
			at the end of
Item	Closing balance	last year
Within 1 year (inclusive)	1,186,791,045.29		1,354,289,654.38
1 to 2 years (including 2 years)	221,832,519.63		186,252,779.24
2 to 3 years (including 3 years)	45,872,605.19		45,350,521.82
Over 3 years	26,788,465.84		42,542,862.00

Total	1,481,284,635.95		1,628,435,817.44
Classified by nature:

			Closing balance
			at the end of
Type	Closing balance	last year
Payment for goods	1,118,113,922.94		1,172,838,445.91
Project funds	322,065,321.76		412,609,654.32
Processing and maintenance funds	15,466,597.16		23,100,766.77
Logistics warehousing funds	4,040,260.94		4,536,666.39
Others	21,598,533.15		15,350,284.05

Total	1,481,284,635.95		1,628,435,817.44

- 51 -

2. Significant account payables aged over 1 year

			Reasons for
			unsettled
			or carried
Items	Closing balance	forward
Sankyo Co., Ltd.	53,136,715.06	Not settled
Yukawa Co., Ltd.	34,362,109.70	Not settled
Iwasaki Manufacturing Co., Ltd.	23,651,957.53	Not settled
Jiangsu Bodiyuan Electronic Technology
Co., Ltd	12,400,707.86	Not settled
Hefei Tongcai Automation Equipment Co.,
Ltd.	12,262,041.03	Not settled
Suzhou Fuqiang Technology Co., Ltd.	8,280,448.46	Not settled
Suzhou Golden Brain Intelligent System
Engineering Co. Ltd.	6,606,065.99	Not settled
Shanghai Zhongka Smart Card Co., Ltd.	5,729,840.00	Not settled
Chuzhou Mingfeng Composite Materials
Co., Ltd.	5,613,484.19	Not settled
China Railway Communication Signal
Shanghai Engineering Bureau Group
Co., Ltd.	5,415,329.07	Not settled
Beijing Xingwangweitong Technology
Development Co., Ltd.	5,027,660.49	Not settled
Beijing Sumavision Technologies Co., Ltd.	4,807,042.65	Not settled
Chengdu Guoheng Technology
Engineering Co., Ltd.	4,722,413.80	Not settled
NIVEK Co., Ltd.	3,943,782.71	Not settled
Hangzhou Linanzixin Cable Co., Ltd.	3,347,639.90	Not settled
Nanjing Longwei Construction Service
Co., Ltd.	3,200,000.00	Not settled
Motorola Systems (China) Co., Ltd.	3,191,315.93	Not settled
Nanjing Hua Hao Buildings Technology
Co., Ltd.	3,156,895.61	Not settled
GRG Banking Equipment Co., Ltd.*	2,898,128.00	Not settled
Zhongtian Radio Frequency Cable Co.,
Ltd.	2,860,908.40	Not settled
Jiangsu Yunsai Information Engineering
Co., Ltd.	2,813,010.00	Not settled
Jiangsu Hengxin Technology Co., Ltd.	2,811,759.88	Not settled
Kunshan Judong Photoelectric Equipment
Co., Ltd.	2,658,180.00	Not settled

Total	212,897,436.26

- 52 -

(VIII)Contract liabilities
1. Details of contract liabilities
			Closing balance
			at the end of
Item	Closing balance	last year
Intelligent traffic	116,422,365.29		81,760,438.00
Intelligent construction	61,603,955.50		46,786,393.06
Electronic manufacturing service	10,900,979.35		22,275,571.73
Intelligent factory	16,586,257.46		8,172,912.03
Information net equipment and
consumer electronics	1,693,739.78		1,544,872.05
Total	207,207,297.38		160,540,186.87

2. Significant changes in book value during the reporting period and reasons

	Amount of
Project	change	Reasons of change
Intelligent traffic	34,661,927.29	Receipt of contract
Intelligent construction	14,817,562.44	Receipt of contract
Electronic manufacturing	-11,374,592.38	Contract liabilities at the
service		beginning of the period was
		recognized as revenue in
		current period
Intelligent factory	8,413,345.43	Receipt of contract
Information net equipment	148,867.73	Receipt of contract
and consumer electronics

Total	46,667,110.51

- 53 -

(IX) Operating income and operating cost
	Current period		Last period
Items	Income	Cost		Income		Cost
Principal business	1,696,495,362.41	1,469,416,892.70	2,114,190,750.98	1,819,973,412.88
Other business	17,659,651.95	4,112,184.23	15,155,025.56	3,579,907.61

Total	1,714,155,014.36		1,473,529,076.93	2,129,345,776.54	1,823,553,320.49

(X) Income tax expenses

1. List of income tax expenses

Items	Current period	Last period
Current income tax	15,815,124.76	20,722,418.32
Deferred income tax	133,855.22	184,944.34
Total	15,948,979.98		20,907,362.66

2. Explain of the relationship of income tax expenses and accounting profit

Items	Current period
Total profit	48,191,323.89
Income tax expenses calculated at the statutory or
applicable tax rate	12,047,830.97
Different tax rate of subsidiaries	9,331,121.14
Adjustment on previous income tax	759,792.72
Income not subject to tax
Expenses not deductible for tax purposes
Utilisation of previously unrecognised tax losses for the
current period	133,855.22
Unrecognised deductible temporary difference and
deductible tax loss for the current period
Effect of additional deducible cost under tax law	-6,323,620.07
Income tax expenses	15,948,979.98

- 54 -

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

Name of the enterprise	Income tax rate
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%
Parking lot of Shenzhen Jinghua Electronic Co., Ltd	20.00%
Shenzhen Jingjia Real Estate Management Co., Ltd.,	20.00%
Galant Limited	16.50%
Hong Kong China Electronic Trading Co., Ltd	16.50%

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 certificate is valid for 3 years. During such period, Nanjing Panda Electronic Manufacture Co., Ltd. paid income tax at 15% of the taxable income.
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. During such period, Nanjing Panda Communications Technology Co., Ltd. paid income tax at 15% of the taxable income.
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. During such period, Nanjing Huage Appliance and Plastic Industrial Co., Ltd. paid income tax at 15% of the taxable income.

- 55 -

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. During such period, Nanjing Panda Information Industry Co., Ltd. paid income tax at 15% of the taxable income.
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. During such period, Nanjing Panda Electromechanical Instrument Technology Co., Ltd. paid income tax at 15% of the taxable income.
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. During such period, Jingwah Information Technology Co., Ltd. paid income tax at 15% of the taxable income.
Nanjing Panda Electronics Equipment Co., Ltd., a second-level subsidiary of the Company, re-identifiedhigh-tech enterprise on 28 November 2018, and obtain 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. During the period, Nanjing Panda Electronics Equipment Co., Ltd. paid income tax at 15% of the taxable income.
Shenzhen Jingjia Property Management Co., Ltd., Shenzhen Jinghua Property Management Co., Ltd. and Parking lot of Shenzhen Jinghua Electronics Co., Ltd., the fourth-level subsidiaries of the Company, are recognized as low profit small enterprises in the current period. According to the "The enterprise income tax law of the people's Republic of China" and its implementing regulations, the "Circular of the Ministry of Finance and the State Administration of Taxation on the implementation of the inclusive tax relief policy for small and micro enterprises", etc, from January 1st, 2019 to December 31, 2021,

- 56 -

for the low profit small enterprises' annual taxable income which not exceeding RMB1 million, the preferential policy reduces the amount of taxable income to 25% and pays the enterprise income tax by rate of 20%. And for the part of the annual taxable income exceeding RMB1 million but not exceeding RMB3 million, the preferential policy reduces the amount of taxable income to 50% and pays the income tax by rate of 20%.

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%.
Nanjing Panda Industrial Enterprise Co., Ltd., the second-level subsidiary of the Company, enjoys the preferential policy of 10% of the added value tax deduction from April 1, 2019 to December 31, 2021 according to the "announcement on deepening the VAT reform" (Announcement No. 39, 2019 of the General Administration of Customs of the Ministry of Finance). According to the "announcement on defining the added value tax deduction policy of the life service industry" (Announcement of the State Administration of Taxation No. 87, 2019), from October 1, 2019 to December 31, 2021, the company enjoys the preferential policy of 15% of added value tax deduction.
Shenzhen Jinghua Property Management Co., Ltd., the fourth-level subsidiary of the Company, enjoys the preferential policy of 10% of added value tax deduction from April 1, 2019 to December 31, 2021 in accordance with the "announcement on policies related to deepening the reform of value added tax" (Announcement No. 39, 2019 of the General Administration of Customs of the Ministry of finance). According to the "announcement on defining the added value tax deduction policy of the life service industry Announcement" (Announcement No. 87, 2019 of the State Administration of Taxation of the Ministry of Finance), from October 1, 2019 to December 31, 2021, the company enjoys the preferential policy of 15% of added value tax deduction.
The Parking Lot of Shenzhen Jinghua Electronics Co., Ltd. and Shenzhen Jingjia Property Management Co., Ltd., both the fourth- level subsidiaries of the Company, enjoy the preferential policy of "six taxes and two fees" levied by Shenzhen City on small-scale VAT taxpayers at a reduced rate of 50% in accordance with the "Notice of the Ministry of Finance and the State Administration of Taxation on the implementation of inclusive tax reduction policies for small and micro enterprises" (CS [2019] No. 13).

- 57 -

13. According to "Taxation on Value-added Tax Policies for Software Products" (CS [2011] No. 110), if general VAT taxpayers sell self- developed and produced software products or sell the imported software products after localization and transformation, after VAT has been collected at a tax rate of 16%, the refund-upon-collection policy shall be applied to the part of actual VAT burden in excess of 3%. The second-level subsidiary of the Company, Nanjing Panda Communication Technology Co., Ltd. could enjoy this preferential policy.

(XI) Return on net assets and earnings per share

		Earnings per share (RMB)
	Weighted
	average
	return on
Profits of the Reporting Period	net assets	Basic	Diluted
	(%)
Net profit attributable to ordinary
shareholders of the Company	0.37	0.0139	0.0139
Net profit after deducting
extraordinary profit and
loss attributable to ordinary
shareholders of the Company	0.03	0.0010	0.0010

(XII) Profit distribution

The profit appropriation plan for the year 2019 was approved at the fourteenth meeting of the ninth session of the Board of the Company, pursuant to which, a cash dividend of RMB0.175 (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 2019 annual report, with the total cash dividend distributed amounting to RMB15,992,174.26. The profit distribution plan was approved at the 2019 annual general meeting of the Company.

(XIII) Significant accounting policies and accounting estimate change

1. Changes in significant accounting policies

There was no change in significant accounting policies for the Reporting Period.

2. Changes in significant accounting estimates

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

- 58 -

(XIV)Miscellaneous

As at 30 June 2020, the Company provided guarantees for the subsidiaries amounting to RMB268,900,573.34, of which: RMB106,182,278.06 is guaranteed in the form of bank acceptance bill; RMB156,943,031.03 is guaranteed in the form of letter of guarantee and RMB5,775,264.25 is guaranteed in the form of letter of credit (30 June 2019: the Company provided guarantees for the subsidiaries 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).

By order of the Board

Nanjing Panda Electronics Company Limited

Zhou Guixiang

Chairman

Nanjing, the People's Republic of China

27 August 2020

As at the date of this announcement, the Board comprises Executive Directors: Mr. Zhou Guixiang, Mr. Lu Qing and Mr. Xia Dechuan; Non-executive Directors: Mr. Shen Jianlong, Mr. Deng Weiming and Mr. Li Changjiang; and Independent Non-executive Directors: Ms. Du Jie, Mr. Zhang Chun and Mr. Gao Yajun.

For illustration purpose only

- 59 -

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Nanjing Panda Electronics Company Ltd. published this content on 27 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2020 12:02:15 UTC

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