Tianjin Capital Environmental Protection : First Quarterly Report 2021

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.

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1065)

First Quarterly Report 2021

1. IMPORTANT

1. The board (the "Board") of directors (the "Directors") and the supervisory committee of Tianjin Capital Environmental Protection Group Company Limited (the "Company") and all of its Directors, supervisors and senior management warrant that there are no false information, misleading statements or material omissions in this quarterly report, and accept joint and several responsibility for the truthfulness, accuracy and completeness of the contents contained in this quarterly report.
2. Mr. Liu Yujun, the chairman of the Company, Ms. Peng Yilin, the officer in charge of the accounting function, and Mr. Liu Tao, the officer in charge of the accounting department (the accounting management officer) have warranted the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.
3. The financial statements contained in the first quarterly report of the Company have not been audited.

1

2. BASIC INFORMATION OF THE COMPANY

2.1 Major Financial Data

Unit: 0' 000 Currency: RMB

			Comparison
			between the
			end of this
			reporting
			period and the
			end of the
	As at		previous year
	the end of	As at the	increase/
	this reporting	end of the	decrease
	period	previous year	(%)
Total assets	2,066,092.6	1,880,296.9	9.88
Net assets attributable to the shareholders of
the Company	675,714.5	659,135.1	2.52
		From the
		beginning of
		the previous	Compared
	From the	year to the	with the same
	beginning of	end of the	period of the
	the year to	corresponding	previous year
	the end of	reporting	increase/
	the reporting	period of the	decrease
	period	previous year	(%)
Net cash flows from operating activities	4,144.6	-525.2	889.15
Operating income	87,528.3	71,627.6	22.20
Net profits attributable to the shareholders of
the Company	16,579.3	12,980.7	27.72
Net profit attributable to the shareholders of
the Company after deduction of
extraordinary items	14,470.5	11,640.4	24.31
Weighted average return ratio on net assets (%)	2.48	2.08	0.40
Basic earnings per share (RMB/share)	0.116	0.091	27.47
Diluted earnings per share (RMB/share)	0.116	0.091	27.47

2

Extraordinary items and amounts

Unit: 0' 000 Currency: RMB
	Amount for
	the reporting
Items	period
Government grants included in profit or loss for the current period other
than those closely related to the normal operation of the Company,
in compliance with national policies and regulations, as well as
the government grants entitled continuously in accordance
with certain standard quota or quantity basis	2,815.7
Other non-operating income and expenditure except for
those mentioned above	30.4
Impact on minority shareholders interests (after tax)	-198.8
Impact on income tax	-538.5
Total	2,108.8

3

2.2 Total number of shareholders and tables of the shareholdings of the top ten shareholders and the top ten shareholders of circulating shares (or shareholders of non-restricted circulating shares) as at the end of the reporting period

Total number of shareholders			67,051 of which 64 were shareholders of H Shares
	Shareholdings of the top ten shareholders
	Number of
	shares held		Number of	Pledged or frozen
	at the end of
	the reporting	Percentage of	restricted
	period	shareholding	shares held	Status of	Number	Nature of
Name of shareholder (Full name)	(shares)	(%)	(shares)	shares	(shares)	shareholder
Tianjin Municipal Investment	715,565,186	50.14	0	None	0	State-owned
Company Limited ("TMICL")						legal person
HKSCC Nominees Limited	337,908,810	23.68	0	Unknown	0	Other
Central Huijin Asset Management Ltd.	14,169,800	0.99	0	None	0	State-owned
						legal person
Hong Kong Securities Clearing Company Limited	8,583,491	0.60	0	None	0	Other
Zhejiang Jinxin Construction Engineering	6,244,000	0.44	0	None	0	Domestic non-
Co., Ltd（. 浙江錦鑫建設工程有限公司）						state-owned
						legal person
Industrial and Commercial Bank of China	2,827,300	0.20	0	None	0	Other
Limited－China Universal CSI Environmental
Governance Index Securities Investment Fund
（中國工商銀行股份有限公司－匯添富中證
環境治理指數型證券投資基金）(LOF)
Hou Hongyan（侯紅燕）	2,500,000	0.18	0	None	0	Domestic
						natural person
Fan Liping（范莉萍)	2,000,000	0.14	0	None	0	Domestic
						natural person
Shenyang Railway Coal Group Co., Ltd.	1,500,000	0.11	0	None	0	State-owned
（瀋陽鐵道煤炭集團有限公司）						legal person
Huang Qiangsheng（黃強勝）	1,432,100	0.10	0	None	0	Domestic
						natural person

4

Shareholdings of the top ten shareholders of non-restricted circulating shares

	Number
	of non-	Type and number of shares
	restricted
	circulating
	shares		Number
Name of shareholders	(shares)	Type	(shares)
TMICL	715,565,186	Ordinary	715,565,186
		RMB Shares
HKSCC Nominees Limited	337,908,810	H Shares	337,908,810
Central Huijin Asset Management Ltd.	14,169,800	Ordinary	14,169,800
		RMB Shares
Hong Kong Securities Clearing	8,583,491	Ordinary	8,583,491
Company Limited		RMB Shares
Zhejiang Jinxin Construction Engineering	6,244,000	Ordinary	6,244,000
Co., Ltd（. 浙江錦鑫建設工程有限公司）		RMB Shares
Industrial and Commercial Bank of China	2,827,300	Ordinary	2,827,300
Limited－China Universal CSI		RMB Shares
Environmental Governance Index Securities
Investment Fund（中國工商銀行股份
有限公司－匯添富中證環境治理
指數型證券投資基金）(LOF)
Hou Hongyan（侯紅燕）	2,500,000	Ordinary	2,500,000
		RMB Shares
Fan Liping (范莉萍)	2,000,000	Ordinary	2,000,000
		RMB Shares
Shenyang Railway Coal Group Co., Ltd.	1,500,000	Ordinary	1,500,000
（瀋陽鐵道煤炭集團有限公司）		RMB Shares
Huang Qiangsheng（黃強勝）	1,432,100	Ordinary	1,432,100
		RMB Shares

5

Notes on the connected relationship or parties acting in concert among the above shareholders

It is not certain whether there is any connected relationship among the top ten shareholders.

It is not certain whether there is any connected relationship between the top ten shareholders of non-restricted circulating shares and the top ten shareholders.

Notes: (1) A c c o r d i n g t o t h e r e g i s t e r o f members as provided by HKSCC Nominees Limited, those H shares held by it were held on behalf of various clients. As of the end of the reporting period, Ningbo

Baisi Yuesi Trading Co., Ltd. ( 寧 波 百 思 樂 斯 貿 易 有 限 公 司 )

and the parties acting in concert with it, namely Ningbo Ningdian

Investment Development Co., Ltd. ( 寧波寧電投資發展有限公司 ) ,

Lvneng Investment & Development

Co., Limited (Hong Kong) ( 綠 能投資發展有限公司（香港）) ,

held 98,050,000 H shares of the Company in total, representing 6.870% of the total share capital of the Company. None of the shares held have been pledged.

1. None of the top ten shareholders are strategic investors of the Company.

6

3. MAJOR EVENTS

3.1 Description of and reasons for substantial changes in principal financial statement items and financial indicators of the Company

As at 31 March 2021, the Company had total assets in the amount of RMB20,660.93 million, representing an increase of RMB1,857.96 million or 9.88% as compared to the end of last year. Total liabilities were RMB12,904.30 million, representing an increase of RMB1,682.97 million or 15.00% as compared to the end of last year. Equity interest attributable to the shareholders of the Company was RMB6,757.15 million, representing an increase of RMB165.79 million or 2.52% as compared to the end of last year. The realised net profit attributable to the Company for the period from January to March of 2021 was RMB165.79 million, representing an increase of RMB35.99 million or 27.72% as compared to the same period last year. The substantial increase of revenue and profit as compared to the same period last year is primarily attributable to the increase in revenue from the sewage treatment business resulting from the facts that (i) the new plants at Dongjiao of Tianjin under upgrading and expansion were put into operation in July 2020, in which a new unit price on sewage treatment service was executed; and (ii) the treated volume of new development projects and existing projects increased.

Analysis of items with more significant changes is set out below:

Unit: 0' 000 Currency: RMB

			Amount of
	31 March	31 December	increase/	Change
Items	2021	2020	decrease	(%)	Reasons
Currency funds	240,422.80	166,364.60	74,058.20	44.52	Mainly due to the increase in the
					Company's long-term borrowings
Construction in progress	1,359.80	985.90	373.90	37.92	Mainly due to the increase in
					the Company's construction
					investments in the projects
Goodwill	49,876.60	0.00	49,876.60	N/A	Mainly the goodwill recognized
					by the Company in respect of the
					hazardous waste projects acquired
Wages payable	2,325.80	8,562.00	-6,236.20	-72.84	Mainly due to the issue of the
					year-end bonus provided for in
					2020 during the current period
Long-term borrowings	590,161.70	422,789.40	167,372.30	39.59	Mainly due to the increase in the
					long-term borrowings during the
					current period

7

	January	January	Amount of
	to March	to March	increase/	Change
Items	2021	2020	decrease	(%)	Reasons
Taxes and surcharges	598.30	920.20	-321.90	-34.98	Mainly due to the change in the
					value-added tax rate and the
					increase in input tax, the decrease
					in the value-added tax paid and
					the corresponding decrease in
					additional taxes
Non-operating income	26.90	2.30	24.60	1,069.57	Mainly due to the increase
					in rebates of property taxes
					and other taxes received by
					subsidiaries as compared with the
					same period last year
Non-operating expenses	13.20	226.50	-213.30	-94.17	Mainly due to RMB1.688 million
					paid by the Company for poverty
					alleviation in Xixiaoliang Village,
					Wuqing District in the same
					period last year, of which was nil
					this period
Net cash flows from	4,144.60	-525.20	4,669.80	-889.15	Mainly due to the decrease in the
operating activities					operating payments such as the
					purchase of goods, labor services
					and taxes paid in the current
					period as compared with the same
					period last year
Net cash flow from	-97,225.00	-46,911.70	-50,313.30	107.25	Mainly due to the increase
investment activities					in the Company's investment
					expenditures on projects this year
					as compared with the same period
					last year
Net cash flow from	167,138.60	56,053.00	111,085.60	198.18	Mainly due to a higher additional
financing activities					debt financing in the current year
					as compared with the same period
					last year
Net increase in cash and	74,058.20	8,616.10	65,442.10	759.53	Mainly due to the combined
cash equivalents					impact of cash flows from
					operating, investment and
					financing activities

8

3.2 Progress of major event and its effects as well as the analytical explanation of solutions

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

In view of the changes in the capital market environment, upon comprehensive consideration of the Company's actual situation, development plans and various other factors, after careful analysis and repeated communication with relevant parties, the Company has adjusted the proposal of the non-public issuance of shares. On 30 March 2021, the Company convened the 47th meeting of the eighth session of the Board, to approve the "Resolution regarding the Plan for Adjustments to the Non-public Issuance of A Shares of the Company 2020" and conduct adjustment to the proposal of the non-public issuance of A shares 2020. On the same date, the Company issued the announcement of the feedback reply regarding the "Notice regarding China Securities Regulatory Commission's Second Feedback on the Review of Administrative Permission Items" (amended). For details of the above matters, please refer to the relevant announcements of the Company published on the SSE Website, as well as the inside information announcement and relevant overseas regulatory announcements published on the Stock Exchange Website on 28 January 2021 and 31 March 2021 respectively.

The non-public issuance of A shares of the Company remains subject to the obtaining of approval from the China Securities Regulatory Commission (the "CSRC"). The Company will perform its obligation of information disclosure on a timely manner according to the progress of the approval by CSRC. Investors are kindly reminded to pay attention to investment risks.

9

1. Commitments that failed to be implemented on time during the reporting period
2. • Applicable √ Not applicable
3. Warning of the prediction that the accumulated net profits from the beginning of the year to the end of the next reporting period may record a loss or substantial changes may have occurred as compared with the same period of the previous year and the reasons
4. • Applicable √ Not applicable

By Order of the Board

Liu Yujun

Chairman

Tianjin, the PRC

26 April 2021

As at the date of this announcement, the Board comprises three executive Directors: Mr. Liu

Yujun, Ms. Wang Jing and Mr. Niu Bo; two non-executive Directors: Mr. Gu Wenhui and Mr. Si

Xiaolong; and three independent non-executive Directors: Mr. Di Xiaofeng, Mr. Guo Yongqing and Mr. Wang Xiangfei.

10

4. APPENDICES
Consolidated Balance Sheet
As at 31 March 2021
	Unit: ' 000 Currency: RMB
	As at	As at
	31 March	31 December
Items	2021		2020
CURRENT ASSETS:
Currency funds	2,404,228		1,663,646
Notes receivable	3,025		2,656
Trade receivables	2,302,841		1,959,083
Prepayments	29,795		26,220
Other receivables	22,493		24,117
Inventories	19,774		17,460
Non-current assets due within one year	20,787		20,049
Other current assets	106,553		82,228
Total current assets	4,909,496		3,795,459
NON-CURRENT ASSETS:
Long-term receivables	1,642,787		1,647,402
Long-term equity investments	195,000		195,000
Other investments in equity instruments	2,000		2,000
Fixed assets	1,012,582		809,495
Construction in progress	13,598		9,859
Intangible assets	12,017,225		11,999,818
Goodwill	498,766		-
Deferred income tax assets	12,965		12,965
Other non-current assets	356,507		330,971
Total non-current assets	15,751,430		15,007,510
TOTAL ASSETS
20,660,926		18,802,969

11

		As at	As at
		31 March	31 December
Items	2021		2020
CURRENT LIABILITIES:
Trade payables	279,469		294,973
Contract liabilities	540,115		527,410
Wages payable	23,258		85,620
Taxes payable	52,971		56,841
Other payables	924,704		955,773
Including: Interests payable	1,240		2,097
Dividends payable	142		142
Non-current liabilities due within one year	1,704,170		1,596,263
Other current liabilities	-	0
Total current liabilities	3,524,687		3,516,880
NON-CURRENT LIABILITIES:
Long-term borrowings	5,901,617		4,227,894
Bonds payable	1,099,107		1,098,848
Long-term payables	243,411		247,734
Expected liabilities	14,055		13,737
Deferred income	1,984,620		1,981,434
Deferred income tax liabilities	102,803		100,799
Other non-current liabilities	34,000		34,000
Total non-current liabilities	9,379,613		7,704,446
TOTAL LIABILITIES	12,904,300		11,221,326
OWNERS' EQUITY (OR SHAREHOLDERS' EQUITY):
Paid-up capital (or share capital)	1,427,228		1,427,228
Capital reserves	431,024		431,024
Surplus reserves	619,055		619,054
Retained earnings	4,279,838		4,114,045
Total equity attributable to owners of the Company
(or shareholders' equity)	6,757,145		6,591,351
Minority shareholders interest	999,481		990,292
Total owners' (or shareholders') equity	7,756,626		7,581,643
TOTAL LIABILITIES AND OWNERS'
(OR SHAREHOLDERS') EQUITY	20,660,926		18,802,969

12

Balance Sheet of the Company

As at 31 March 2021

	Unit: ' 000 Currency: RMB
	As at	As at
	31 March	31 December
Items	2021		2020
CURRENT ASSETS:
Currency funds	1,440,061		623,111
Trade receivables	1,324,207		1,126,477
Prepayments	3,422		0
Other receivables	28,419		25,883
Including: Interest receivables	0		0
Dividend receivables	0		0
Inventories	5,819		5,995
Non-current assets due within one year	20,787		20,049
Other current assets	258,949		375,011
Total current assets	3,081,664		2,176,526
NON-CURRENT ASSETS:
Long-term receivables	1,642,787		1,647,402
Long-term equity investments	4,966,545		4,223,545
Other investments in equity instruments	2,000		2,000
Fixed assets	144,688		148,551
Construction in progress	681		340
Intangible assets	3,823,577		3,865,856
Other non-current assets	20,832		40,832
Total non-current assets	10,601,110		9,928,526
TOTAL ASSETS
13,682,774		12,105,052

13

		As at	As at
		31 March	31 December
Items	2021		2020
CURRENT LIABILITIES:
Trade payable	52,238		43,558
Contract liabilities	4,950		4,950
Wages payable	14,340		43,202
Taxes payable	7,083		4,688
Other payables	213,892		230,454
Including: Interests payable	-	0
Dividends payable	142		142
Non-current liabilities due within one year	1,405,636		1,536,886
Other current liabilities	360,000		70,000
Total current liabilities	2,058,139		1,933,738
NON-CURRENT LIABILITIES:
Long-term borrowings	2,717,871		1,396,472
Bonds payable	1,099,107		1,098,848
Long-term payables	234,811		239,134
Expected liabilities	11,665		11,665
Deferred income	1,507,746		1,524,402
Deferred income tax liabilities	37,636		36,085
Other non-current liabilities	380,000		380,000
Total non-current liabilities	5,988,836		4,686,606
TOTAL LIABILITIES	8,046,975		6,620,344
OWNERS' EQUITY (OR SHAREHOLDERS' EQUITY):
Paid-up capital (or share capital)	1,427,228		1,427,228
Capital reserves	380,788		380,788
Surplus reserves	619,054		619,054
Retained earnings	3,208,729		3,057,638
Total owners' (or shareholders') equity	5,635,799		5,484,708
TOTAL LIABILITIES AND OWNERS'
(OR SHAREHOLDERS') EQUITY	13,682,774		12,105,052

14

Consolidated Income Statement

January to March 2021

		Unit: ' 000 Currency: RMB
		First Quarter	First Quarter
Items	of 2021	of 2020
1.	Total operating income	875,283	716,276
	Including: Operating income	875,283	716,276
2.	Total operating costs	699,111	588,164
	Including: Operating costs	572,151	478,978
	Tax and surcharges	5,983	9,202
	Sales expenses	4,525	3,816
	Administrative expenses	39,458	32,949
	Research and development expenses	1,673	1,321
	Financial expenses	75,321	61,898
	Including: Interest expenses	67,063	74,378
	Interest income	4,798	10,139
	Add: Other income	31,936	39,871
3. Operating profit (losses are stated by "-")	208,108	167,983
	Add: Non-operating income	269	23
	Less: Non-operating expenses	132	2,265
4. Total profit (total losses are stated by "-")	208,245	165,741
	Less: Income tax expenses	33,753	30,707
5. Net profit (net losses are stated by "-")	174,492	135,034
	(I) Classified by continuity of operations
	1. Net profit from continuing operations
	(net losses are stated by "-")	174,492	135,034
	(II) Classified by ownership of the equity
	1. Net profit attributable to shareholders of
	the Company (net losses are stated by "-")	165,793	129,807

2. Loss or profit attributable to minority shareholders

		(net losses are stated by "-")	8,699	5,227
6.	Other comprehensive income, net of tax	-	-
7.	Total comprehensive income	174,492	135,034
	(I)	Total comprehensive income attributable to owners of
		the Company	165,793	129,807
	(II)	Total comprehensive income attributable to
		minority shareholders	8,699	5,227

8. Earnings per share:

(I)	Basic earnings per share (RMB/share)	0.116	0.091
(II)	Diluted earnings per share (RMB/share)	0.116	0.091

For the business combination under common control effected in the current period, the net profit recognized by the merged party before the combination was RMB0, and the net profit recognized by the merged party in the previous period was RMB0.

15

Income Statement of the Company

January to March 2021

		Unit: ' 000 Currency: RMB
		First Quarter	First Quarter
Items	of 2021	of 2020
1.	Operating income	394,165	358,348
	Less: Operating costs	207,582	210,888
	Tax and surcharges	692	3,029
	Administrative expenses	17,466	19,281
	Research and development expenses	3	-
	Financial expenses	48,509	50,920
	Including: Interest expenses	39,636	56,717
	Interest income	4,200	3,392
	Add: Other income	16,797	30,218
	Investment Income (losses are stated by "-")	35,441	6,163
2.	Operating profit (losses are stated by "-")	172,151	110,611
	Add: Non-operating income	2	-
	Less: Non-operating expenses	-	1,688
3.	Total profit (total losses are stated by "-")	172,153	108,923
	Less: Income tax expenses	21,062	16,338
4.	Net profit (net losses are stated by "-")	151,091	92,585
	(I) Net profit from continuing operations (net losses are
	stated by "-")	151,091	92,585
5.	Other comprehensive income, net of tax	-	-
6.	Total comprehensive income	151,091	92,585

7. Earnings per share:

(I)	Basic earnings per share (RMB/share)	-	-
(II)	Diluted earnings per share (RMB/share)	-	-

16

Consolidated Cash Flow Statement

January to March 2021

	Unit: ' 000 Currency: RMB
	First Quarter	First Quarter
Items	of 2021	of 2020
1. Cash flows from operating activities:
Cash received from sales of goods and rendering of services	592,758	562,094
Taxes and levies rebate received	2,968	7,962
Cash received relating to other operating activities	38,816	42,668
Sub-total of cash inflow from operating activities	634,542	612,724
Cash paid for goods and services	334,554	318,579
Cash paid to and on behalf of employees	147,400	126,087
Payment of taxes and levies	67,415	116,659
Cash payments relating to other operating activities	43,727	56,651
Sub-total of cash outflow for operating activities	593,096	617,976
Net cash flow generated from operating activities	41,446	-5,252
2. Cash flows from investing activities:
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets	5	49
Cash received from other investing activities	20,154	-
Sub-total of cash inflow from investing activities	20,159	49
Cash paid to acquire and construct fixed assets,
intangible assets and other long-term assets	303,415	469,166
Cash paid for investments	688,994	-
Sub-total of cash outflow for investing activities	992,409	469,166
Net cash flows generated from investing activities	-972,250	-469,117

17

	First Quarter	First Quarter
Items	of 2021	of 2020
3. Cash flows from financing activities:
Cash received from assimilated investments	490	12,706
Including: cash received from minority shareholders'
investments assimilated by subsidiaries	490	12,706
Cash received from borrowings	1,969,769	1,152,524
Sub-total of cash inflow from financing activities	1,970,259	1,165,230
Cash paid for repayment of debt	253,747	567,580
Cash paid for distribution of dividends,
profits or interest payments	45,126	37,120
Including: Dividends and profits paid by subsidiaries to
minority shareholders	0	0
Sub-total of cash outflow from financing activities	298,873	604,700
Net cash flow generated from financing activities	1,671,386	560,530

4. Effect of foreign exchange rate changes on cash and

cash equivalent	-	-
5. Net increase in cash and cash equivalents	740,582	86,161
Add: Balance of cash and cash equivalents at
the beginning of the period	1,652,657	2,066,301

6. Balance of cash and cash equivalents at the end of

the period

2,393,239

2,152,462

18

Cash Flow Statement of the Company

January to March 2021

	Unit: ' 000 Currency: RMB
	First Quarter	First Quarter
Items	of 2021	of 2020
1. Cash flows from operating activities:
Cash received from sales of goods and rendering of services	224,489	353,299
Taxes and levies rebate received	-	2,072
Cash received relating to other operating activities	188,323	255,746
Sub-total of cash inflow from operating activities	412,812	611,117
Cash paid for goods and services	157,292	149,349
Cash paid to and on behalf of employees	55,062	56,628
Payment of taxes and levies	27,404	77,197
Cash payments relating to other operating activities	54,663	188,407
Sub-total of cash outflow for operating activities	294,421	471,581
Net cash flow generated from operating activities	118,391	139,536
2. Cash flows from investing activities:
Cash received from investment returns	32,000	-
Sub-total of cash inflow from investing activities	32,000	-
Cash paid to acquire and construct fixed assets,
intangible assets and other long-term assets	45,365	44,717
Cash paid for investments	732,859	74,509
Sub-total of cash outflow for investing activities	778,224	119,226
Net cash flows generated from investing activities	-746,224	-119,226
3. Cash flows from financing activities:
Cash received from borrowings	1,527,291	682,280
Sub-total of cash inflow from financing activities	1,527,291	682,280
Cash paid for repayment of debt	65,750	501,000
Cash paid for distribution of dividends,
profits or interest payments	16,758	17,577
Sub-total of cash outflow from financing activities	82,508	518,577
Net cash flow generated from financing activities	1,444,783	163,703

4. Effect of foreign exchange rate changes on cash and

cash equivalent	-	-
5. Net increase in cash and cash equivalents	816,950	184,013
Add: Balance of cash and cash equivalents
at the beginning of the period	617,960	736,182

6. Balance of cash and cash equivalents

at the end of the period

1,434,910

920,195

19