Tianjin Capital Environmental Protection : Third Quarterly Report 2019

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)

Third Quarterly Report 2019

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 responsibilities 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 chief accountant) have warranted the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.
3. The third quarterly report of the Company has not been audited.

1

2. Major Financial Data and Changes in Shareholders 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 previous
	As at the end of		year
	this reporting	As at the end of	Increase/
	period	the previous year	decrease (%)
Total assets	1,699,722.0	1,568,744.8	8.35
Net assets attributable to the shareholders of the
Company	605,458.5	581,820.3	4.06
		From the beginning
		of the previous
	From the beginning	year to the end of
	of the year to the	the corresponding	Compared with
	end of the	reporting period of	the same period of
	reporting period	the previous year	the previous year
	(January to	(January to	Increase/decrease
	September)	September)	(%)
Net cash flows from operating activities	85,305.7	62,561.7	36.35
Operating income	194,069.0	173,048.8	12.15
Net profits attributable to the shareholders
of the Company	38,766.8	41,715.3	-7.07
Net profits attributable to the shareholders
of the Company after deduction of
extraordinary items	31,297.0	39,223.1	-20.21
			Decreased by 1.17
Weighted average return ratio on net assets (%)	6.53	7.70	percentage points
Basic earnings per share (RMB/share)	0.27	0.29	-6.9
Diluted earnings per share (RMB/share)	0.27	0.29	-6.9

2

Extraordinary items and amounts

Unit: 0' 000 Currency: RMB

		Amounts for the period
		from the beginning of
	Amounts for the	the year to the end of
	current period	the reporting period
Items	(July to September)	(January to September)
Gain and loss from disposal of non-current assets	4,698.2	4,818.3
Government grants included in profit or loss for the current	1,664.9	4,772.1
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
Other non-operating income and expenditure except for
those mentioned above	89.2	-133.8
Impact on minority interests (after tax)	-20.0	-48.0
Impact on income tax	-1,457.5	-1,938.8
Total	4,974.8	7,469.8

3

2.2 Total number of shareholders and 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

					83,979, of which 66 were
Total number of shareholders					shareholders of H shares
	Shareholdings of the top ten shareholders
	Number of
	shares held
	at the end	Percentage	Number of	Pledged or frozen
	of the
	reporting	of	restricted
Name of shareholder (Full name)	period	shareholding	shares held	Status of	Number	Nature of
(shares)	(%)	(shares)	shares	(shares)	shareholder
Tianjin Municipal Investment Company	715,565,186	50.14	0	None	-	State-owned
Limited ("TMICL")						legal person
HKSCC Nominees Limited	337,854,810	23.67	0	Unknown	-	Other
Central Huijin Asset Management Ltd.	14,169,800	0.99	0	None	-	State-owned
						legal person
Hong Kong Securities Clearing Company	7,868,075	0.55	0	None	-	Other
Limited
Agricultural Bank of China Limited	4,728,152	0.33	0	None	-	Other
- CSI500 Index Open-ended Fund
(中證500交易型開放式指數證券
投資基金)
Zhejiang Jinxin Construction Engineering	3,400,500	0.24	0	None	-	Domestic
Co., Ltd. (浙江錦鑫建設工程有限公司)						non-state-
						owned
						legal person
Wu Zuojia (吳作佳)	2,241,219	0.16	0	None	-	Domestic
						natural
						person
Bank of China Limited - Guangfa China	2,061,517	0.14	0	None	-	Other
Securities Environmental Protection
Industry Index Open-ended Fund
(廣發中證環保產業交易型開放式
指數證券投資基金)
Liu Lichun (劉立春)	1,759,000	0.12	0	None	-	Domestic
						natural
						person
Shenyang Railway Coal Group Co., Ltd.	1,500,000	0.11	0	None	-	State-owned
(瀋陽鐵道煤炭集團有限公司)						legal person

4

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

	Number of	Type and number of shares
	non-restricted
	circulating shares
Name of shareholder	held (shares)	Type	Number (shares)
TMICL	715,565,186	Ordinary RMB Shares	715,565,186
HKSCC Nominees Limited	337,854,810	H Shares	337,854,810
Central Huijin Asset Management Ltd.	14,169,800	Ordinary RMB Shares	14,169,800
Hong Kong Securities Clearing	7,868,075	Ordinary RMB Shares	7,868,075
Company Limited
Agricultural Bank of China Limited	4,728,152	Ordinary RMB Shares	4,728,152
-CSI500 Index Open-ended Fund
(中證500交易型開放式指數證券
投資基金)
Zhejiang Jinxin Construction Engineering	3,400,500	Ordinary RMB Shares	3,400,500
Co., Ltd. (浙江錦鑫建設工程有限公司)
Wu Zuojia (吳作佳)	2,241,219	Ordinary RMB Shares	2,241,219
Bank of China Limited - Guangfa China	2,061,517	Ordinary RMB Shares	2,061,517
Securities Environmental Protection
Industry Index Open-ended Fund
(廣發中證環保產業交易型開放式
指數證券投資基金)
Liu Lichun (劉立春)	1,759,000	Ordinary RMB Shares	1,759,000
Shenyang Railway Coal Group Co., Ltd.	1,500,000	Ordinary RMB Shares	1,500,000
(瀋陽鐵道煤炭集團有限公司)
	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
Notes on the connected	shareholders of non-restricted circulating shares and the top ten shareholders.
relationship or parties acting
in concert among the above	Notes: (1) According to the register of members as provided by HKSCC Nominees
shareholders	Limited, those H shares held by it were held on behalf of various clients.
	There was no client who owned 5% or more interest in the total share
	capital of the Company.
	(2) None of the top ten shareholders are strategic investors of the Company.

5

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 30 September 2019, the Company and its subsidiaries (the "Group") had total assets in the amount of RMB16,997.22 million, representing an increase of RMB1,309.77 million or 8.35% as compared to the end of last year. Total liabilities were RMB9,991.86 million, representing an increase of RMB919.37 million or 10.13% as compared to the end of last year. Equity interest attributable to the shareholders of the Company was RMB6,054.58 million, representing an increase of RMB236.38 million or 4.06% as compared to the end of last year. The realised net profit attributable to the Company for the period from January to September of 2019 was RMB387.67 million, representing a decrease of RMB29.48 million or 7.07% as compared to the same period last year.

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

Unit: 0' 000 Currency: RMB

			Amount of
	30 September	31 December	increase/
Items	2019	2018	decrease	Change	Explanation of change
Prepayments	5,123.90	2,353.10	2,770.80	117.75%	Mainly due to an increase in
					prepayments for materials in this
					period
Other receivables	4,990.60	3,616.20	1,374.40	38.01%	Mainly due to the increase in
					the project tender deposit and
					the refund-upon-collection tax
					receivable during this period
Other current assets	25,998.60	15,668.80	10,329.80	65.93%	Mainly due to increase in input tax
					of value-added tax to be credited by
					the Company
Investment properties	2,038.40	8,405.20	-6,366.80	-75.75%	Mainly due to the decrease of
					external leasing business of the
					Company's office building
Construction in	35,630.30	15,093.90	20,536.40	136.06%	Mainly due to increased investment
progress					in non-franchise projects during this
					period
Employee	1,608.50	5,394.20	-3,785.70	-70.18%	Mainly due to the payment of year-
remuneration					end bonus provided for in the end
payables					of 2018 during the period
Non-current liabilities	73,002.70	24,337.00	48,665.70	199.97%	Mainly due to the increase of long-
due within one year					term borrowings due within one
					year during this period

6

			Amount of
	January to	January to	increase/
Items	September 2019	September 2018	decrease	Change	Explanation of change
Credit impairment	-9.80	-292.30	282.50	96.65%	Mainly	because the	collected
loss					account	receivable	for which
					provisions for asset	impairment
					losses were made in the same
					period last year is higher than that
					in the current period
Investment gain	0.00	20.00	-20.00	-100.00%	Mainly because Tianjin Beifang
					Rencaigang Company Limited*(天
					津北方人才港股份有限公司), the
					invested company of the Company,
					did not declare dividends for this
					period due to loss of last year
Income from asset	4,818.30	0.00	4,818.30	100.00%	Mainly	due to the receipt of
disposal					arbitration compensation in respect
					of Tap Water project of Anguo
					Capital Water Company Limited*
					(安國創業水務有限公司) in this
					period
Non-operating	248.60	101.20	147.40	145.65%	Mainly	because donation to
expenses					Xixiaoliang Village(西小良村)in
					this period is higher than that in the
					same period last year
Income tax expenses	9,023.70	13,401.40	-4,377.70	-32.67%	Mainly	due to the decrease of
					total profit in the current period
					as compared to that in the last
					period, on the other hand, because
					the Company enjoys	preferential
					policies on the income tax of
					pollution	treatment enterprises for
					third parties according to relevant
					regulations, thus income tax in the
					current period decreased
Net cash flows from	85,305.70	62,561.70	22,744.00	36.35%	Mainly	due to the increase of
operating activities					sewage	treatment service fee
					charged in this period as compared
					to the same period last year
Net cash flows from	181,321.40	269,626.20	-88,304.80	-32.75%	Mainly	because the	new debt
financing activities					financing this year is lower than
					that in the same period last year
Net increase of cash	-16,780.20	193,091.50	-209,871.70	-108.69%	Mainly	due to the	combined
and cash equivalent					influences of cash flow from
					operating and financing activities

7

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

□ Applicable

√  Not applicable

3.3 Commitments that failed to be implemented on time during the reporting period

□ Applicable

√  Not applicable

3.4 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

□ Applicable

√  Not applicable

By order of the Board

Liu Yujun

Chairman

Tianjin, the PRC

25 October 2019

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

Yujun, Ms. Wang Jing and Mr. Niu Bo; three non-executive Directors: Mr. Yu Zhongpeng, Mr.

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

* For identification purposes only

8

4.	APPENDICES
Consolidated Balance Sheet
As at 30 September 2019
		Unit: ' 000 Currency: RMB
		Balance at the		Balance at the
Items	end of the period		beginning of the year
CURRENT ASSETS:
	Currency funds	1,658,600	1,826,201
	Notes receivable	13,408	10,295
	Account receivable	2,286,283	2,081,465
	Prepayments	51,239	23,531
	Other receivables	49,907	36,162
	Inventories	14,542	13,991
	Non-current assets due within one year	18,615	22,789
	Other current assets	259,986	156,688
Total current assets	4,352,580	4,171,122
NON-CURRENT ASSETS:
	Long-term receivables	240,759	253,686
	Long-term equity investments	195,000	195,000
	Other investments in equity instruments	2,000	2,000
	Investment properties	20,384	84,052
	Fixed assets	387,675	346,641
	Construction in progress	356,303	150,939
	Intangible assets	11,363,276	10,374,827
	Other non-current assets	79,243	109,181
Total non-current assets	12,644,640	11,516,326
Total assets	16,997,220	15,687,448

9

	Balance at the	Balance at the
Items	end of the period	beginning of the year
CURRENT LIABILITIES:
Short-term borrowing	200,000	200,000
Account payable	192,836	176,398
Contract liability	546,155	469,185
Employee remuneration payables	16,085	53,942
Tax payables	64,036	68,893
Other payables	1,335,289	1,458,045
Including: Interest payables	45,027	43,768
Dividend payables	391	1,912
Non-current liabilities due within 1 year	730,027	243,369
Total current liabilities	3,084,428	2,669,832
NON-CURRENT LIABILITIES:
Long-term borrowings	2,539,922		2,051,953
Bonds payable	1,797,130		1,796,363
Long-term payables	246,494		266,367
Estimated liabilities	10,069		10,069
Deferred income	2,132,850		2,101,085
Deferred income tax liabilities	142,962		138,812
Other non-current liabilities	38,000		38,000
Total non-current liabilities	6,907,427		6,402,649
Total liabilities	9,991,855		9,072,481
OWNERS' EQUITY (OR
SHAREHOLDERS' EQUITY)
Paid-up capital (or share capital)	1,427,228		1,427,228
Capital reserve	431,024		431,024
Surplus reserve	517,107		517,107
Undistributed profit	3,679,226		3,442,844
Total owners' equity (or shareholders'
equity) attributable to the Company	6,054,585		5,818,203
Minority shareholders interest	950,780		796,764
Total owners' equity (or shareholders'
equity)	7,005,365		6,614,967
Total liabilities and owners' equity (or
shareholders' equity)	16,997,220		15,687,448

10

Balance Sheet of the Company

As at 30 September 2019

		Unit: ' 000 Currency: RMB
	Balance at the		Balance at the
Items	end of the period		beginning of the year
CURRENT ASSETS:
Currency funds	313,612	595,990
Account receivable	1,710,905	1,687,179
Prepayments	2,776	822
Other receivables	150,183	134,560
Inventories	5,142	3,992
Non-current assets due within one year	18,615	22,789
Other current assets	573,795	824,650
Total current assets	2,775,028	3,269,982
NON-CURRENT ASSETS:
Long-term receivables	240,759	253,686
Long-term equity investments	4,046,748	3,520,705
Other investments in equity instruments	2,000	2,000
Investment properties	0	63,289
Fixed assets	159,539	107,316
Construction in progress	4,789		-
Intangible assets	4,024,504	4,092,295
Other non-current assets	82,832	190,519
Total non-current assets	8,561,171	8,229,810
Total assets	11,336,199	11,499,792

11

	Balance at the	Balance at the
Items	end of the period	beginning of the year
CURRENT LIABILITIES:
Short-term borrowing	200,000	200,000
Account payable	63,412	46,500
Contract liability	27,978	4,541
Employee remuneration payables	11,662	24,868
Tax payables	4,807	250
Other payables	644,609	961,291
Including: Interest payables	45,027	42,974
Dividend payables	0	1,912
Non-current liabilities due within 1 year	532,049	81,417
Total current liabilities	1,484,517	1,318,867
NON-CURRENT LIABILITIES:
Long-term borrowings	852,342		1,318,713
Bonds payable	1,797,130		1,796,363
Long-term payables	246,494		266,367
Estimated liabilities	10,069		10,069
Deferred income	1,622,792		1,662,338
Deferred income tax liabilities	70,909		67,841
Other non-current liabilities	290,000		290,000
Total non-current liabilities	4,889,736		5,411,691
Total liabilities	6,374,253		6,730,558
OWNERS' EQUITY (OR
SHAREHOLDERS' EQUITY)
Paid-up capital (or share capital)	1,427,228		1,427,228
Capital reserve	380,788		380,788
Surplus reserve	517,107		517,107
Undistributed profit	2,636,823		2,444,111
Total owners' equity (or shareholders'
equity)	4,961,946		4,769,234
Total liabilities and owners' equity (or
shareholders' equity)	11,336,199		11,499,792

12

Consolidated Income Statement

January to September 2019

				Unit: ' 000 Currency: RMB
				Amount for	Amount for
				the period	the period
				from the	from the
				beginning of	beginning of
				the year to	the previous
				the end of the	year to the end
		Amount for	Amount for	reporting	of the reporting
		the period	the previous	period	period
		(July-	period (July-	(January-	(January-
Items	September)	September)	September)	September)
1.	Total operating income	715,974	622,690	1,940,690	1,730,488
	Including: Operating income	715,974	622,690	1,940,690	1,730,488
2.	Total operating costs	582,545	464,093	1,582,224	1,274,026
	Including: Operating costs	491,637	382,266	1,305,997	1,026,078
	Tax and surcharges	8,203	7,485	27,110	33,951
	Sales expenses	1,477	1,041	3,464	3,771
	Administrative expenses	36,422	28,944	104,454	84,575
	Research and development
	expenses	1,960	1,929	5,230	6,974
	Financial expenses	42,846	42,428	135,969	118,677
	Including: Interest expenses	41,477	65,441	148,067	154,023
	Interest income	6,006	16,968	16,986	28,214
	Add: Other income	32,488	19,984	93,232	109,599
	Investment gain (losses are stated by
	"-")	0	0	0	200
	Credit impairment loss (losses are
	stated by "-")	0	0	98	2,923
	Income from asset disposal (losses are
	stated by "-")	46,982	0	48,183	0
3. Operation profit (losses are stated by "-")	212,899	178,581	499,979	569,184
	Add: Non-operating income	3,047	2,704	5,596	6,803
	Less: Non-operating expenses	106	25	2,486	1,012
4. Total profit (total losses are stated by "-")	215,840	181,260	503,089	574,975
	Less: Income tax expenses	34,083	41,786	90,237	134,014
5. Net profit (net losses are stated by "-")	181,757	139,474	412,852	440,961
(1) Classified by continuity of operations	181,757	139,474	412,852	440,961
1. Net profit from continuing operations (net
	losses are stated by "-")	181,757	139,474	412,852	440,961

13

				Amount for	Amount for
				the period	the period
				from the	from the
				beginning of	beginning of
				the year to	the previous
				the end of the	year to the end
		Amount for	Amount for	reporting	of the reporting
		the period	the previous	period	period
		(July-	period (July-	(January-	(January-
Items	September)	September)	September)	September)
2.	Net profit from discontinued operations (net
	losses are stated by "-")	0	-	-	-
(2) Classified by ownership of the equity	181,757	139,474	412,852	440,961
1.	Net profit attributable to shareholders of the
	Company (net losses are stated by "-")	169,165	134,588	387,668	417,153
2.	Loss or profit attributable to minority
	shareholders (net losses are stated by "-")	12,592	4,886	25,184	23,808
6.	Other comprehensive income, net of tax	-	-	-	-
7.	Total comprehensive income	181,757	139,474	412,852	440,961
Total comprehensive income attributable to
	owners of the Company	169,165	134,588	387,668	417,153
Total comprehensive income attributable to
	minority shareholders	12,592	4,886	25,184	23,808
8.	Earnings per share:
(1) Basic earnings per share (RMB/share)	0.12	0.09	0.27	0.29
(2) Diluted earnings per share (RMB/share)	0.12	0.09	0.27	0.29

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.

14

Income Statement of the Company

January to September 2019

				Unit: ' 000 Currency: RMB
				Amount for	Amount for
				the period	the period
				from the	from the
				beginning of	beginning of
				the year to	the previous
				the end of the	year to the end
		Amount for	Amount for	reporting	of the reporting
		the period	the previous	period	period
		(July-	period (July-	(January-	(January-
Items	September)	September)	September)	September)
1.	Operating income	281,982	269,213	819,940	770,904
Less: Operating costs	193,922	158,383	542,929	409,630
	Tax and surcharges	1,181	1,250	6,878	12,441
	Administrative expenses	19,670	16,605	57,689	47,810
	Financial expenses	30,108	29,677	104,905	88,265
	Including: Interest expenses	24,995	44,010	107,142	123,395
	Interest income	30,685	12,064	36,770	31,850
Add: Other income	20,744	5,687	54,842	63,236
	Investment gain (losses are stated by "-")	190,638	126,820	209,939	127,020
2.	Operation profit (losses are stated by "-")	248,483	195,805	372,320	403,014
	Add: Non-operating income	1,418	33	2,510	47
	Less: Non-operating expenses	0	12	2,379	686
3.	Total profit (total losses are stated by "-")	249,901	195,826	372,451	402,375
	Less: Income tax expenses	10,070	17,244	28,452	68,831
4.	Net profit (net losses are stated by "-")	239,831	178,582	343,999	333,544
(1) Net profit from continuing operations (net
	losses are stated by "-")	239,831	178,582	343,999	333,544
5.	Other comprehensive income, net of tax	-	-	-	-
6.	Total comprehensive income	239,831	178,582	343,999	333,544
7.	Earnings per share:
(1) Basic earnings per share (RMB/share)	0.17	0.13	0.24	0.23
(2) Diluted earnings per share (RMB/share)	0.17	0.13	0.24	0.23

15

Consolidated Cash Flow Statement

January to September 2019

	Unit: ' 000 Currency: RMB
		Amount for the period
	Amount for the period	from the beginning of
	from the beginning of	the previous year to
	the year to the end of	the end of the
	the reporting period	reporting period
Items	(January-September)	(January-September)
1. Cash flows from operating activities:
Cash received from sales of goods and
rendering of services	2,032,415	1,709,396
Taxes and levies rebate received	29,520	84,104
Cash received relating to other
operating activities	342,886	258,259
Sub-total of cash inflow from operating
activities	2,404,821	2,051,759
Cash paid for goods and services	860,090	646,291
Cash paid to and on behalf of employees	248,042	213,071
Payments of taxes and levies	215,844	402,726
Cash payments relating to other
operating activities	227,788	164,054
Sub-total of cash outflow from
operating activities	1,551,764	1,426,142
Net cash flows from operating activities	853,057	625,617
2. Cash flows from investing activities:
Cash received from returns on
investments	0	200
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets	47,515	2,535
Cash received relating to other investing
activities	4,274	24,900
Sub-total of cash inflow from investing
activities	51,789	27,635
Cash paid to acquire fixed assets,
intangible assets and other long-term
assets	1,885,260	1,220,266
Cash paid for investments	0	600,521
Cash paid relating to other investing
activities	3,900	9,102
Sub-total of cash outflow from investing
activities	1,889,160	1,829,889
Net cash flows from investing activities	-1,837,371	-1,802,254

16

		Amount for the period
	Amount for the period	from the beginning of
	from the beginning of	the previous year to
	the year to the end of	the end of the
	the reporting period	reporting period
Items	(January-September)	(January-September)
3. Cash flows from financing activities:
Cash received from capital contributions	129,224	79,463
Including: Cash received from capital
contribution by minority
shareholders of subsidiaries	129,224	79,463
Cash received from borrowings	1,683,991	1,516,799
Cash received relating to other
financing activities	0	1,100,000
Sub-total of cash inflow from financing
activities	1,813,215	2,696,262
Cash paid for repayments of debts	699,121	1,374,917
Cash paid for distribution of dividends
and profits or for interest expenses	297,582	107,482
Including: Dividends and profits paid to
minority shareholders
by subsidiaries	0	780
Sub-total of cash outflow from
financing activities	996,703	1,482,399
Net cash flows from financing activities	816,512	1,213,863

4. Effect of foreign exchange rate changes on cash and cash

	equivalents	-	-
5.	Net increase in cash and cash
	equivalents	-167,802	37,226
Add: Balance of cash and cash equivalents
	at the beginning of period	1,808,543	1,893,689
6.	Balance of cash and cash equivalents
	at the end of period	1,640,741	1,930,915

17

Cash Flow Statement of the Company

January to September 2019

	Unit: ' 000 Currency: RMB
		Amount for the period
	Amount for the period	from the beginning of
	from the beginning of	the previous year to
	the year to the end of	the end of the
	the reporting period	reporting period
Items	(January to September)	(January to September)
1. Cash flows from operating activities:
Cash received from sales of goods and
rendering of services	958,466	965,952
Taxes and levies rebate received	9,439	36,791
Cash received relating to other
operating activities	1,033,144	495,477
Sub-total of cash inflow from operating
activities	2,001,049	1,498,220
Cash paid for goods and services	430,680	276,718
Cash paid to and on behalf of employees	99,445	90,994
Payments of taxes and levies	46,617	152,813
Cash payments relating to other
operating activities	855,818	852,513
Sub-total of cash outflow from
operating activities	1,432,560	1,373,038
Net cash flows from operating activities	568,489	125,182
2. Cash flows from investing activities:
Cash received from disposal of
investments	-	136,900
Cash received from returns on
investments	182,770	-
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets	-	86
Cash received relating to other investing
activities	-	5,000
Sub-total of cash inflow from investing
activities	182,770	141,986
Cash paid to acquire fixed assets,
intangible assets and other long-term
assets	233,357	381,518

18

		Amount for the period
	Amount for the period	from the beginning of
	from the beginning of	the previous year to
	the year to the end of	the end of the
	the reporting period	reporting period
Items	(January to September)	(January to September)
Cash paid for investments	526,044	823,906
Cash paid relating to other investing
activities	-	9,101
Sub-total of cash outflow from investing
activities	759,401	1,214,525
Net cash flows from investing activities	-576,631	-1,072,539
3. Cash flows from financing activities:
Cash received from borrowings	533,629	1,250,000
Cash received relating to other
financing activities	-	1,100,000
Sub-total of cash inflow from financing
activities	533,629	2,350,000
Cash paid for repayments of debts	550,000	1,199,000
Cash paid for distribution of dividends
and profits or for interest expenses	257,940	86,182
Cash paid relating to other financing
activities
Sub-total of cash outflow from
financing activities	807,940	1,285,182
Net cash flows from financing activities	-274,311	1,064,818
4. Effect of foreign exchange rate
changes on cash or cash equivalents	-	-
5. Net increase in cash and cash
equivalents	-282,453	117,461
Add: Balance of cash and cash
equivalents at the beginning of
period	586,888	779,808
6. Balance of cash and cash equivalents
at the end of period	304,435	897,269

19

4.2 Adjustment to opening balance of related items in the financial statements for the year of initial adoption due to initial adoption of the new financial instrument standards, new revenue standards and new lease standards

□ Applicable

√  Not applicable

4.3 Explanations on retrospective adjustments of previously comparative figures due to initial adoption of new financial instrument standards and new lease standards

□ Applicable

√  Not applicable

4.4 Audit Report

□ Applicable

√  Not applicable

20