Sinopec Oilfield Service : First Quarterly Results 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes 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.

Sinopec Oilfield Service Corporation

(a joint stock limited company established in the People's Republic of China)

(Stock code: 1033)

First Quarterly Results 2021

This announcement is made by Sinopec Oilfield Service Corporation (the "Company") pursuant to Rule 13.09 (2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the relevant regulations issued by the Shanghai Stock Exchange (the "SSE").

The board of directors (the "Board") of the Company hereby presents the first quarterly results of the Company and its subsidiaries for the three months ended 31 March 2021.

§1. Important Highlights

1. The Board and the Supervisory Committee of the Company and its directors, supervisors and senior management warrant that there are no false representations, misleading statements or material omissions in this quarterly report and individually and jointly accept full responsibility for the authenticity, accuracy and completeness of the information contained in this quarterly report.
2. All directors of the Company attended the board meeting to consider this quarterly report.
3. Mr. Chen Xikun, Chairman, Mr. Yuan Jianqiang, General Manager, Mr. Cheng Zhongyi, executive in charge of accounting work and Mr. Pei Defang, manager of the accounting department of the Company warranted the authenticity and completeness of the financial statements contained in this quarterly report.
4. The Company's first quarterly financial report for 2021 is prepared in accordance with the PRC Accounting Standards for Business Enterprises and unaudited.

§2. Company Profile

2.1 Key financial data

1

					As at	As at	Increase/(decrease) (%)
					31 March 2021	31 December 2020
					RMB'000	RMB'000
Total assets			61,610,851	61,091,195			0.9
Total	equity	attributable	7,001,848	6,722,866			4.1
to equity shareholders of
the Company
					For the three months	For the three months	Increase/(decrease)
					ended 31 March 2021	ended 31 March 2020	from corresponding
					RMB'000		period of last year
						RMB'000	(%)
Net cash inflow from		-385,477	-1,184,219
operating activities ("-"				Not applicable
for outflow)
					For the three months	For the three months	Increase/(decrease)
					ended 31 March 2021	ended 31 March 2020	from	corresponding
					RMB'000	RMB'000	period of last year
							(%)
Operating income		14,599,813	12,868,009			13.5
Net profit attributable to	165,646	-182,308		Not applicable
equity	shareholders	of
the Company ("-" for
losses)
Net	profit	deducted	130,487	-215,842		Not applicable
extraordinary	gain	and
loss attributable to equity
shareholders	of	the
Company ("-" for losses)
Weighted	average return	2.4	-2.70	Increased	by	5.1
on net assets					percentage points
Basic earnings per share	0.01	-0.01		Not applicable
(in RMB) ("-" for losses)
Diluted	earnings	per	0.01	-0.01		Not applicable
share (in RMB) ("-" for
losses)

Extraordinary gain and loss items
√ Applicable	□Not Applicable
		Amount during the reporting period
	Items	(From 1 January 2021 to 31 March
	2021)
		RMB'000
Gains or losses from disposal of non-current assets	2,229
Government grants recognised in profit or loss during the	15,086
current period, except for government subsidies that are
closely related to the company's normal business operations
and that are in compliance with national policies and are
subject to constant or fixed amount of certain standards
Gains or losses from debt restructuring	12,120
Other non-operating income and expenses excluding the	11,213
aforesaid items
	2

Effect of income tax	-5,489
Total	35,159

2.2 The number of shareholders of the Company at the end of this reporting period and details of the top ten shareholders and the top ten shareholders of shares without selling restrictions

							Unit: Share
The total number of	116,983, of which the number of H shareholders was 338.
shareholders at the end of
this reporting period
Shareholdings of the top ten shareholders
Names of shareholders	Number of	Percent	Number of		Number of	Nature of
	shares held at	age to	shares with		pledged or	shareholders
	the end of the	total	selling	frozen share
	reporting	share	restrictions
	Shares	Amo
	period (shares)	capital	(shares)
	status	unts
		(%)
China Petrochemical	10,727,896,364	56.51	0	none		0	State-owned
Corporation 1							legal person
Hong Kong Securities				none		0	Overseas legal
Clearing Company							person
(Nominees) Limited	5,402,024,694	28.46	0
("HKSCC (Nominees)
Limited") 2
CITIC Limited	1,035,000,000	5.45	0	none		0	State-owned
							legal person
Donghai Fund-Industrial	66,666,666	0.35	0	none		0	Other
Bank-Huaxin
Trust-Huizhi Investment
No.49 Trust Plan
Donghai Fund	66,666,666	0.35	0	none		0	Other
-Industrial Bank
-HuaxinTrust-Huizhi
Investment No.47 Trust
Plan
Hong Kong Securities				none		0	Other
Clearing Company	53,036,641	0.28	0
Limited3
China Minsheng Bank				none		0	Domestic
Corp., Ltd.	37,599,799	0.20	0				non-state-owne
			d legal person
Hohhot Branch
Changjiang Pension	23,148,854	0.12	0	none		0	Other
Insurance
Co.,Ltd.-Changjiang
Shengshi Huazhang
No.2 Community
Pension Management
Fund4

3

Shanghai Tongneng

none

0

Domestic

Investment Holdings Co.,

11,516,200

0.06

0

non-state-owne

Ltd

d legal person

Anhui Yang

Guang Xin

none

0

Domestic

Tong

Electronic

11,200,000

0.06

0

non-state-owne

d legal person

Technology Co. Ltd

Shareholdings of the top ten shareholders of shares without selling restriction

Name of shareholders

Number of shares without

Type and Amount of shares

selling restrictions held at the

end of the reporting period

Type

Amount

(shares)

China Petrochemical Corporation

10,727,896,364

A shares

10,727,896,364

HKSCC (Nominees) Limited

5,402,024,694

H shares

5,402,024,694

CITIC Limited

1,035,000,000

A shares

1,035,000,000

Donghai Fund-Industrial

66,666,666

A shares

66,666,666

Bank-HuaxinTrust-Huizhi

Investment No.49 Trust Plan

Donghai Fund-Industrial Bank

66,666,666

A shares

66,666,666

-HuaxinTrust-Huizhi Investment

No.47 Trust Plan

Hong Kong Securities Clearing

53,036,641

A shares

53,036,641

Company Limited

China Minsheng Bank Corp., Ltd.

37,599,799

A shares

37,599,799

Hohhot Branch

Changjiang Pension Insurance

Co.,Ltd.-Changjiang Shengshi

23,148,854

A shares

23,148,854

Huazhang No.2 Community Pension

Management Fund

Shanghai Tongneng Investment

11,516,200

A shares

11,516,200

Holdings Co., Ltd

Anhui Yang Guang Xin Tong

11,200,000

A shares

11,200,000

Electronic Technology Co. Ltd

Except that "Donghai Fund- Industrial Bank-Huaxin Trust -

Statement on the connected

Huizhi Investment No.49 Trust Plan" and "Donghai Fund-

Industrial Bank-Huaxin Trust - Huizhi Investment No.47 Trust

relationship or activities in concert

Plan" belong to Donghai Fund Management Limited Company,

among the above-mentioned

the Company is not aware of that there is any connected

shareholders

relationship or activities in concert among the above-mentioned

shareholders.

Preferred shareholders with restored

The company has no outstanding preferred shares.

voting rights

Note:

1. China Petrochemical Corporation held 2,595,786,987 H shares of the Company through Sinopec Century Bright Capital Investment, Ltd., an overseas wholly-owned subsidiary, such H shares were included in the total number of shares held by HKSCC (Nominees) Limited
   2."HKSCC (Nominees) Limited" is a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited, acts as an agent to hold H shares of the Company on behalf of other companies or individual shareholders.

1. Hong Kong Securities Clearing Company Limited is a wholly-owned subsidiary of Hong

4

Kong Exchanges and Clearing Limited, acts as an nominal holder to hold A shares of the Company in the Shanghai Stock Exchange on behalf of the investors of the Hong Kong Stock Exchange.

4. Changjiang Pension Insurance Co., Ltd held it on behalf of Qi Xin Gong Ying Scheme.

2.3 Total number preferred shareholders, top 10 preferred shareholders and top 10 holders of preference shares without selling restriction as at the end of the reporting period

□Applicable

√Not applicable

§3. Significant Events

3.1 Significant changes of key accounting items and financial indices and the reasons for the changes

√Applicable □Not applicable

Item

As at 31

As at 31

Change

March 2021

December 2020

Reason for change

RMB '000

RMB '000

(%)

Inventories

1,389,212

1,033,678

34.4

Mainly due to the increase in

unfinished labor projects

Contract liabilities

2,117,574

3,024,461

-30.0

mainly due to the progress of

projects and the fulfillment of

contract obligations

Taxes payable

443,076

724,389

-38.8

Mainly due to the decrease in

value-added tax and personal

income tax payable

Long-term payable

53,099

26,812

98.0

Mainly due to the return of the

security fund

Special reserve

371,859

258,523

43.8

Mainly due to the increase in

income and the amount of

accrual is greater than the

amount of expenditure

Item

For the three months ended

Change

31 March

Reason for change

2021

2020

(%)

RMB '000

RMB'000

Research

and

Mainly due to the arrangement

development expenses

of

internal

reform

and

85,824

167,581

-48.8

reorganization of the R&D

project was later than the same

period last year

Credit impairment losses

The reversal of bad debt

("-" for losses)

provision due to recovery of

18,343

883

1977.3

accounts receivable is

higher

compared with the same period

of last year

Gains

from

assets

2,229

214

941.6

Mainly due to the disposal of

disposal

marine work ships

5

Non-operating income				Mainly due to the year-on-year
				13,478	3,952	241.0	increase in Payables that do not
				need to be paid and indemnity
							income for breach of contract
Non-operating expenses				Mainly due to the year-on-year
				2,265	4,433	-48.9	decrease	in	donation
							expenditures
Net	cash	flow	from			Not	Mainly due to the increase in
operating activities		-385,477	-1,184,219	sales receipts	in the	current
				applicable	period and the improvement in
							operating cash
Net	cash	flow	from			Not	Mainly due to the year-on-year
investing activities		-46,930	-149,791	decrease in equipment purchase
	applicable
						expenses
Net	cash	flow	from	493,225	1,654,034	-70.2	Mainly due to the year-on-year
financing activities		decline in loan growth

1. The progress of significant events and their impacts as well as the analysis and explanations for the solutions
   □Applicable □√Not applicable
2. Non-performanceof undertakings during the reporting period

□Applicable

√Not applicable

3.4 Warnings on potential fluctuation from the net profit to the loss for the period from the beginning of the year to the end of next reporting period or significant changes as compared with the same period of the preceding year

□Applicable

√Not applicable

By order of the Board Chen Xikun Chairman

27 April 2021, Beijing

As at the date of this announcement, the Board of Directors comprises Mr. Chen Xikun#, Mr. Yuan Jianqiang#, Mr. Lu Baoping+, Mr. Fan Zhonghai+, Mr. Wei Ran+, Mr. Zhou Meiyun+, Mr. Chen Weidong*, Mr. Dong Xiucheng* and Mr. Zheng Weijun*.

# Executive Director

+ Non-Executive Director

* Independent Non-Executive Director

6

§4 Appendix

4.1 Financial statements

Consolidated Balance Sheet

As at 31 March 2021

Sinopec Oilfield Service Corporation

(Expressed in thousands of renminbi yuan and unaudited)

item	As at 31 March 2021	As at 31 December 2020
Current assets:
Cash at bank and on hand	1,607,539	1,551,458
Bills receivable	0	0
Accounts receivable	7,943,065	9,358,385
Accounts receivable financing	1,088,314	1,323,425
Prepayments	456,620	441,654
Other receivables	2,515,995	2,464,362
Including: Interest receivables
Dividend receivables	502	502
Inventories	1,389,212	1,033,678
Contract assets	14,391,180	11,610,888
Assets classified as held for sale
Non-current assets due within one year
Other current assets	2,080,229	1,995,808
Total current assets	31,472,154	29,779,658
Non-current assets:
Long-term receivable
Long-term equity investments	42,666	43,046
Other equity instrument investments	22,835	22,835
Fixed assets	22,216,414	22,939,838
Construction in progress	255,015	284,292
Right-of-use asset	1,265,066	1,265,583
Intangible assets	480,257	504,966
Long-term deferred expenses	5,460,692	5,855,143
Deferred income tax assets	395,752	395,834
Other non-current assets
Total non-current assets	30,138,697	31,311,537
Total assets	61,610,851	61,091,195
Current liabilities：
Short-term loans	20,136,106	19,370,520
Bills payable	8,022,904	6,305,228
Accounts payable	18,895,687	20,497,509
Advances from customers

7

Contract liabilities			2,117,574		3,024,461
Employee benefits payable			522,687		498,071
Taxes payable			443,076		724,389
Other payables			2,169,923		1,675,104
Including: Interest payable			1,612		17,458
Dividend payable
Liabilities classified as held for sale
Non-current liabilities due within	one		363,757		356,747
year
Other current liabilities
Total current liabilities			52,671,714		52,452,029
Non-current liabilities:
Long-term loans			584,846		580,716
Lease liability			897,949		898,469
Long-term payable			53,099		26,812
long-term employment benefits payable
Provisions			373,427		382,646
Deferred income			14,497		14,186
Deferred tax liabilities			13,471		13,471
Other non-current liabilities
Total non-current liabilities			1,937,289		1,916,300
Total liabilities			54,609,003		54,368,329
Shareholders' equity：
Share capital			18,984,340		18,984,340
Capital reserve			11,717,773		11,717,773
Other comprehensive income			-2,014		-2,014
Specific reserve			371,859		258,523
Surplus reserve			200,383		200,383
Retained earnings			-24,270,493		-24,436,139
Equity attributable to shareholders of the		7,001,848		6,722,866
Company
Minority interests
Total shareholders' equity			7,001,848		6,722,866
Total liabilities and shareholders' equity			61,610,851		61,091,195
Legal Representative: Mr. Chen Xikun	General Manager: Mr. Yuan Jianqiang
Executive in charge of accounting work: Mr. Cheng Zhongyi	Manager of accounting department: Mr. Pei Defang

Company Balance Sheet

As at 31 March 2021

Sinopec Oilfield Service Corporation

(Expressed in thousands of renminbi yuan and unaudited)

item	As at 31 March 2021	As at 31 December 2020

8

Current assets:
Cash at bank and on hand	157	159
Bills receivable
Accounts receivable
Accounts receivable financing
Prepayments
Other receivables	4,383,081	4,396,431
Including: Interest receivables
Dividend receivables
Inventories
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets	167	167
Total current assets	4,383,405	4,396,757
Non-current assets:
Long-term receivable
Long-term equity investments	27,891,662	27,891,662
Other equity instrument investments
Fixed assets
Construction in progress
Right-of-use asset
Intangible assets
Long-term deferred expenses
Deferred income tax assets
Other non-current assets
Total non-current assets	27,891,662	27,891,662
Total assets	32,275,067	32,288,419
Current liabilities：
Short-term loans
Bills payable
Accounts payable	11,800	11,800
Advances from customers
Contract liabilities
Employee benefits payable
Taxes payable	26,690	26,661
Other payables	148	13,306
Including: Interest payable
Dividend payable
Non-current liabilities due within one year
Other current liabilities
Total current liabilities	38,638	51,767

9

Non-current liabilities:
Long-term loans
Lease liability
Long-term payable
long-term employment benefits payable
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities			0		0
Total liabilities			38,638		51,767
Shareholders' equity：
Share capital			18,984,340		18,984,340
Capital reserve			14,568,016		14,568,016
Surplus reserve			200,383		200,383
Retained earnings			-1,516,310		-1,516,087
Total shareholders' equity			32,236,429		32,236,652
Total liabilities and shareholders' equity			32,275,067		32,288,419
Legal Representative: Mr. Chen Xikun	General Manager: Mr. Yuan Jianqiang
Executive in charge of accounting work: Mr. Cheng Zhongyi	Manager of accounting department: Mr. Pei Defang

Consolidated Income Statement

For the three months ended 31 March 2021

Sinopec Oilfield Service Corporation

(Expressed in thousands of renminbi yuan and unaudited)

	Item			For the three months	For the three months
			ended 31 March 2021	ended 31 March 2020
1. Total Operating Income			14,599,813	12,868,009
Including: Operating Income			14,599,813	12,868,009
2. Total Operating Costs			14,501,612	13,095,775
Including: Operating Costs			13,759,222	12,228,462
Business taxes and surcharges			50,429	45,382
Selling and distribution expenses		16,374	13,020
General and administrative expenses		414,589	422,271
Research and development expenses		85,824	167,581
Finance expenses			175,174	219,059
Including: Interest expenses			162,021	229,533
Interest income			9,034	2,924
Add: Other income				48,339	61,436
Investment income ("-" for losses)		11,740	14,825
Including:	Investment	income	in	-380	-589
associates and joint ventures
Gain from	derecognition	of financial	12,120	15,414

10

assets measured at amortized cost ("-" for losses)
Exchange gains ("-" for losses)
Gains from changes in fair value ("-" for
losses)
Credit impairment losses ("-" for losses)		18,343		883
Impairment of assets	("-" for losses)		27		36
Gains from assets	disposal	("-" for		2,229		214
losses)
3. Operating profit ("-" for losses)			178,879		-150,372
Add: Non-operating income			13,478		3,952
Less: Non-operating expenses			2,265		4,433
4. Total profit ("-" for losses)				190,092		-150,853
Less: Income tax expenses				24,446		31,455
5. Net profit for the period ("-" for losses)		165,646		-182,308
(1) Classification according to operation
continuity
Including: Net profit from continuing operations		165,646		-182,308
("-" for net loss)
Net profit from discontinued operations ("-" for
net loss)
(2) Classification according to attribute
Including: Shareholders of the company ("-" for		165,646		-182,308
net loss)
Non-controlling interests ("-" for net loss)
6. Other comprehensive net income after tax		0		0
7. Total comprehensive income for the period		165,646		-182,308
Attributable to the owners of parent company		165,646		-182,308
Attributable to minority shareholders of the
Company
8. Earnings per share:
(1) Basic earnings per share (in RMB)		0.01		-0.01
(2) Diluted earnings per share (in RMB)		0.01		-0.01
Profit from combined party before business combination under common control was RMB 0 during the
current period. Profit from combined party before business combination under common control was RMB 0
during the prior period.
Legal Representative: Mr. Chen Xikun	General Manager: Mr. Yuan Jianqiang
Executive in charge of accounting work: Mr. Cheng Zhongyi	Manager of accounting department: Mr. Pei Defang

Company Income Statement

For the three months ended 31 March 2021

Sinopec Oilfield Service Corporation

(Expressed in thousands of renminbi yuan and unaudited)

Item	For the three months	For the three months
ended 31 March 2021	ended 31 March 2020

11

1. Operating Income
Less: Operating Costs
Business taxes and surcharges
Selling and distribution expenses
General and administrative expenses		221		131
Research and development expenses
Finance expenses			2		1
Including: Interest expenses
Interest income
Add: Other income
Investment income ("-" for losses)
Including: Investment income in associates
and joint ventures
Gain from derecognition of financial assets
measured at amortized cost ("-" for losses)
Gains from changes in fair value ("-" for
losses)
Credit impairment losses ("-" for losses)
Impairment of assets ("-" for losses)
Gains from assets disposal	("-" for
losses)
2. Operating profit ("-" for losses)			-223		-132
Add: Non-operating income
Less: Non-operating expenses
3. Total profit ("-" for losses)			-223		-132
Less: Income tax expenses
4. Net profit for the period ("-" for losses)			-223		-132
Including: Net profit from continuing operations		-223		-132
("-" for net loss)
Net profit from discontinued operations ("-" for
net loss)
5. Other comprehensive net income after tax		0		0
6. Total comprehensive income for the period		-223		-132
7. Earnings per share:
(1) Basic earnings per share (in RMB)
(2) Diluted earnings per share (in RMB)
Legal Representative: Mr. Chen Xikun	General Manager: Mr. Yuan Jianqiang
Executive in charge of accounting work: Mr. Cheng Zhongyi	Manager of accounting department: Mr. Pei Defang

Consolidated Cash Flow Statement

For the three months ended 31 March 2021

Sinopec Oilfield Service Corporation

(Expressed in thousands of renminbi yuan and unaudited)

12

			Item				For the three months ended	For the three months ended
						31 March 2021	31 March 2020
1.	Cash flows from operating activities:
	Cash received	from	sale of	goods and	10,455,420	9,332,441
rendering of services
	Refund of taxes					57,415	55
	Cash received relating to other operating	3,081,251	2,937,129
activities
	Sub-total of cash inflows		13,594,086	12,269,625
	Cash paid for goods and services	8,385,505	8,050,804
	Cash paid to and for employees		2,739,232	2,907,557
	Cash paid for all types of taxes		322,109	250,890
	Cash paid	relating	to	other	operating	2,532,717	2,244,593
activities
	Sub-total of cash outflows		13,979,563	13,453,844
	Net	cash	flow	from	operating	-385,477	-1,184,219
activities (outflow listed with "-")
2.	Cash flows from investing activities：
	Cash received from disposal of
investment
	Cash received from investment income
	Net cash received from disposal of fixed		29
assets, intangible assets and other long-term	8,519
assets
	Net cash received from disposal of
subsidiaries and other business units
	Cash received relating to other investing
activities
	Sub-total of cash inflows		8,519	29
	Cash paid for acquisition of fixed assets,	55,449	149,811
intangible assets and other long-term assets
	Cash paid for the investments			9
	Net cash paid for acquisition of
subsidiaries and other business units
	Cash paid relating to other investing
activities
	Sub-total of cash outflows		55,449	149,820
	Net	cash	flow	from	investing	-46,930	-149,791
activities (outflow listed with "-")
3.	Cash flows from financing activities：
	Cash received from the acquisition of
investments
	Including: Cash received from investment
absorbed from minority shareholders by the
subsidiary
	Cash received from borrowings		12,756,356	14,299,046
	Cash received relating to other financing
activities
	Sub-total of cash inflows		12,756,356	14,299,046
	Cash paid for repayments of borrowings	12,004,873	12,339,115

13

Cash	paid	for distribution	of	dividend,	148,976		211,705
profit or payments of interests
Including:	Cash	paid	to	minority
shareholders for dividend and profit by the
subsidiary
Cash	paid	relating	to other	financing	109,282		94,192
activities
Sub-total of cash outflows				12,263,131		12,645,012
Net cash flow from financing activities		493,225		1,654,034
4. Effect of exchange rate changes on cash	23,369		111
and cash equivalents
5. Net	increase	in	cash	and	cash	84,187		320,135
equivalents
Add: Cash	and	cash equivalents at the	1,523,352		1,650,732
beginning of the period
6、Cash and cash equivalents at the end of	1,607,539		1,970,867
the period
Legal Representative: Mr. Chen Xikun	General Manager: Mr. Yuan Jianqiang

Executive in charge of accounting work: Mr. Cheng Zhongyi Manager of accounting department: Mr. Pei Defang

Company Cash Flow Statement

For the three months ended 31 March 2021

Sinopec Oilfield Service Corporation

(Expressed in thousands of renminbi yuan and unaudited)

	Item			For the three months ended	For the three months ended
			31 March 2021	31 March 2020
1.	Cash flows from operating activities:
	Cash received from sale of goods and
rendering of services
	Refund of taxes
	Cash received relating to other operating
activities
	Sub-total of cash inflows			0
	Cash paid for goods and services
	Cash paid to and for employees
	Cash paid for all types of taxes
	Cash paid relating to	other	operating	2	7
activities
	Sub-total of cash outflows		2	7
	Net cash inflow	from	operating	-2	-7
activities (outflow listed with "-")
2.	Cash flows from investing activities：
	Cash received from disposal of investment
	Cash received from investment income
	Net cash received from disposal of fixed
assets, intangible assets and other long-term
assets
	Net cash received from disposal of
subsidiaries and other business units
	Cash received relating to other investing
activities
	Sub-total of cash inflows

14

	Cash paid for acquisition of fixed assets,
intangible assets and other long-term assets
	Cash paid for the investments
	Net cash paid for acquisition of
subsidiaries and other business units
	Cash paid relating to other investing
activities
	Sub-total of cash outflows
	Net cash inflow from investing
activities (outflow listed with "-")
3.	Cash flows from financing activities：
	Cash received from the acquisition of
investments
	Cash received from borrowings
	Cash received relating to other financing
activities
	Sub-total of cash inflows
	Cash repayments of borrowings
	Cash paid for distribution of dividend,
profit or payments of interests
	Cash paid relating to other financing
activities
	Sub-total of cash outflows
	Net cash inflow from financing
activities
4. Effect of exchange rate changes on cash
and cash equivalents
5.	Net increase	in	cash and	cash		-2		-7
equivalents
	Add: Cash and	cash	equivalents	at the		159		170
beginning of the period
6、Cash and cash equivalents at the end of		157		163
the period
Legal Representative: Mr. Chen Xikun	General Manager: Mr. Yuan Jianqiang
Executive in charge of accounting work: Mr. Cheng Zhongyi	Manager of accounting department: Mr. Pei Defang

4.2 The adjustment of the relevant items of the financial statements for the first time implementation of new income standards and new lease standards since 2021

• Applicable √ Not applicable

4.3 Explanation of retrospective adjustment of comparative information of the previous period by the first implementation of the new financial instrument standards or the new revenue standards

• Applicable √Not applicable

4.4 Audit report

• Applicable √Not applicable

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