StockCode:200468 ShortFormoftheStock:*STNJTELB NoticeNo.:2016-026 NanjingPutianTelecommunicationsCo.,Ltd. SummaryofSemi-AnnualReport2016 1.ImportantNotice Thesummaryofsemi-annualreportisexcerptedfromthefulltextofthesemi-annualreport.Forthedetails,investorsshouldcarefullyreadthefulltextofthesemi-annualreportpublishedonJuchaoInformationwebsite(www.cninfo.com.cn)andShenzhenStockExchangeWebsiteetc.,appointedbyCSRC. Companyprofile Shortformforshare *STNJTELB Codeforshare 200468 Listingstockexchange ShenzhenStockExchange Contactpersonandways SecretaryoftheBoard Rep.ofsecuritiesaffairs Name ZhangShenwei XiaoHong Tel. 86-25-58962072 86-25-58962010 Fax. 86-25-52409954 86-25-52409954 E-mail xiaohong@postel.com.cn zsw@postel.com.cn 2.MainaccountingdataandChangesofshareholders (1)Mainaccountingdata Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdataforaccountingpolicychangedandaccountingerrorcorrectionornot □Yes√No Increase/decreaseinthis Currentperiod Sameperiodoflastyear reporty-o-y(%) Operatingrevenue(RMB) 834,739,223.47 920,291,331.61 -9.30% Netprofitattributabletoshareholdersof -21,109,095.63 -16,613,763.93 -27.06% thelistedcompany(RMB) Netprofitattributabletoshareholdersof thelistedcompanyafterdeducting -22,354,358.57 -18,587,900.12 -20.26% non-recurringgainsandlosses(RMB) Netcashflowarisingfromoperating -96,581,410.89 -135,877,454.58 28.92% activities(RMB) Basicearningspershare(RMB/Share) -0.10 -0.08 -25.00% Dilutedearningspershare(RMB/Share) -0.10 -0.08 -25.00% WeightedaverageROE -6.28% -4.67% -1.61% Endofcurrentperiod Endoflastperiod Increase/decreaseinthis report-endoverthatoflast period-end(%) Totalassets(RMB) 2,071,314,325.03 2,093,670,119.65 -1.07% Netassetsattributabletoshareholderof 325,357,663.18 346,684,394.29 -6.15% listedcompany(RMB) (2)Particularsaboutthesharesheldbythetoptencommonshareholders InShare Totalcommonshareholdersat 9,509 period-end Particularsaboutthesharesheldbythetoptencommonshareholders Numberofshare Natureof Proportionof Numberof Numberofnon-circulationstock Shareholders pledged/frozen shareholder sharesheld sharesheld held Stateofshare Amount ChinaPotevio State-owned Company 53.49% 115,000,000 115,000,000 corporate Limited Shenwan HongYuan Overseas 3.69% 7,928,125 0 Securities(HK) corporate Limited GUOTAI JUNAN Overseas SECURITIES( 1.73% 3,709,804 0 corporate HONGKONG) LIMITED Guosen Securities(HK) Overseas 1.38% 2,969,255 0 BrokerageCo., corporate Ltd Domestic ZhangHui’an 1.31% 2,807,000 0 natureperson Domestic ZhengEnyue 1.10% 2,369,639 0 natureperson BOCI Overseas SECURITIES 1.04% 2,236,928 0 corporate LIMITED Domestic SunHuiming 0.93% 2,007,110 0 natureperson Domestic GuJinhua 0.83% 1,782,871 0 natureperson Domestic ChenChujia 0.61% 1,304,506 0 natureperson Explanationonassociated Amongthetoptenshareholders,ChinaPotevioCompanyLimitedisneitherarelatedpartynora relationshipamongtheaforesaid personactinginconcertwiththeothers.It’sunknownbytheCompanywhethertherearerelated shareholders partiesorpersonsactinginconcertamongtheothershareholders. Explanationonshareholders involvingmarginbusiness(if N/A applicable) (3)Particularsaboutthetoptenshareholderswithpreferredstockheld □Applicable√Notapplicable NoparticularabouttheshareholderswithpreferredstockheldinPeriod. (4)Changesofcontrollingshareholdersoractualcontroller Changesofcontrollingshareholdersinreportingperiod □Applicable √Notapplicable Nochangeofcontrollingshareholdersinreportingperiod Changesofactualcontrollerinreportingperiod □Applicable √Notapplicable Nochangeofactualcontrollerinreportingperiod 3.Discussionandanalysisofmanagement Inthefirsthalfyearof2016,facingthecomplexeconomicsituationandtheincreasinglyfiercemarketcompetition,thecompanyhasbeenadheringtothebusinessprinciplesof"innovation,integration,andcapital",focusingontheannualbudgettargets,earnestlyimplementingtheobjectivesandrequirementsof"steadygrowth,adjustingstructure,promotingtransformation"ofSASAC,takingadvancingthequalityandefficiencyasthegoal,acceleratingthecompany’sindustrialrestructuring,promotingtheleanmanagement,makingeffortstoenhancethedevelopmentofqualityandefficiency,andensuringthecompany’ssustainableandsteadydevelopment.Undertheinfluenceofmacroeconomicenvironmentandexternalmarket,thecompanyhasachievedoperatingincomeof835millionYuaninthefirsthalfyear,completed46.37%oftheannualbudget,adecreaseof9.30%comparedwiththesameperiodoflastyear,andachievedthenetprofitsof-21,109,100Yuanattributabletotheequityholdersofparentcompany. Year-on-yearchangesofmainfinancialdata InRMB Currentperiod Sameperiodoflastyear Y-o-yincrease/decrease Reasonsforchanges Affectedbyslowofthe macro-economic, intensifiedindustrial competitionanddecline Operationrevenue 834,739,223.47 920,291,331.61 -9.30% ofthesalesprice,the operationrevenue decreasedonay-o-y basis Operationcostsdeclined Operationcost 686,173,649.02 759,205,839.90 -9.62%withthedecreaseof revenue Salesexpenses 80,474,718.48 85,374,312.00 -5.74% Administrativeexpenses 69,513,112.10 68,807,167.70 1.03% Financialcost 11,247,942.96 11,250,520.74 -0.02% Profitfromsomeofthe subsidiariesaredeclined Incometaxexpense 3,235,803.32 8,415,501.07 -61.55%fromayearearlier,the incometaxexpenses declinedcorrespondingly R&Dinvestment 33,918,277.09 36,886,662.06 -8.05% Therecoupfundsfor paymentofgoodsare increasedfromayear Net cash flow arising -96,581,410.89 -135,877,454.58 28.92%earlier;expenditurefrom fromoperationactivities purchasingandcashfor tax-payingaredeclined onay-o-ybasis Thecashpaidforfixed Net cash flow arising assetsinvestmentinthe -1,272,325.51 -2,647,780.06 51.95% frominvestmentactivities Periodarelessoverthat oflastperiod Bankloansaredecreased Net cash flow arising fromayearearlier,the -61,384,722.62 54,725,674.00 -212.17% fromfinancingactivities loanspaidtobankare increasedonay-o-ybasis Thenetcashflowarising Netincreaseofcashand fromfinancingactivities -159,511,552.16 -83,789,559.09 -90.37% cashequivalent aredeclineddramatically onay-o-ybasis Thejoint-stockcompany Investmentincome 917,844.11 1,648,163.04 -44.31%hasalessprofitfroma yearearlier Operationprofit -17,759,814.90 -8,232,830.34 -115.72%Under the influence of macroeconomic Netprofitattributableto slowdown, continuous owners’ of parent -21,109,095.63 -16,613,763.93 -27.06%aggravationof industrial company competition,sellingprice fall and other factors, during the reporting period, the company’s operating income has decreasedcomparedwith the same periodof last year. Though the company has been makingeffortstocontrol andreduceallcostsand expenses, which cannot makeupthelossofprofit broughtby thedecrease of operating income, resulting in the operationallossesduring thereportingperiod. 4.Mattersrelevanttofinancialreport (1)Particularsaboutthechangesinaspectofaccountingpolicy,estimatesandcalculationmethod comparedwiththefinancialreportoflastyear’s □Applicable √Notapplicable Nochangesinaspectofaccountingpolicy,estimatesandcalculationmethodoccurredinthePeriod (2)Parricularsaboutretroactiverestatementonmajorcorrectionforaccountingerrorsinreportingperiod □Applicable√Notapplicable Noretroactiverestatementonmajorcorrectionforaccountingerrorsinreportingperiod (3)Particularsaboutthechangeofconsolidationrangecomparedwiththefinancialreportoflastyear’s □Applicable√Notapplicable TheconsolidationrangehasnochangedinthePeriod (4)Explanationon“QualifiedOpinion”oftheReportfromCPAbytheBoardandSupervisoryCommittee □Applicable√Notapplicable BoardofDirectorsof NanjingPutianTelecommunicationsCo.,Ltd. 30August2016