1 Dalian Refrigeration Co., Ltd. QUARTERLY REPORT FOR THIRD QUARTER, 2017 October, 2017 2 §1 Important Notes 1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and Senior staff members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any important omissions, fictitious statements or serious misleading carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completeness of the whole contents. 1.2 The Company’s quarterly financial report has not been audited. 1.3 Chairman of the Board of Directors of the Company Mr. Ji Zhijian, Financial Majordomo Mr. Ma Yun and the head of Accounting Department Ms. Mao Chunhua hereby confirm that the financial report of the quarterly report is true and complete. 1.4 This report is written respectively in Chinese and in English. In the event of any discrepancy between the two above-mentioned versions, the Chinese version shall prevail. §2 Major accounting data and changes of shareholders 2.1 Major accounting data and financial indexes Is there any traceable adjustment to the financial statements for the previous report period? √ Yes □ No item 2017.9.30 2016.12.31 Increase/decrease compared with previous year Before adjustment After adjustment After adjustment To tal assets 5,548,758,563.21 4,983,511,574.26 5,095,986,440.32 8.88% Owner's equity attributable to shareholders of listed companies 3,385,723,271.38 3,247,797,768.92 3,301,087,748.86 2.56% 2017.7-9 Increase/decrease over 2016.7-9 2017.1-9 Increase/decrease over 2016.1-9 To tal operating income 461,323,140.51 -6.60% 1,463,701,858.01 10.49% Net profit attributable to parent company 47,073,348.70 -28.78% 145,333,511.79 6.30% Net profit attributable to parent company after deducting non-recurring gains/losses 47,499,687.40 18.72% 117,460,550.89 11.80% Net cash generated from operating activities -- -- -203,593,761.26 -215.17% Basic earnings per share 0.055 -31.25% 0.170 0.59% Diluted earnings per share 0.055 -31.25% 0.170 0.59% We ighted average return on net asset yield 1.40% perce Dec nta rea gese po 0i.n 99 ts 4.35% Decrease 0.68percentage points The Net profit attributable to parent company of the reporting period has significantly reduction over 2016.7-9, mainly because the Non-operation revenue decreased. The same period last year, the Company purchasing 70% equity of Dalian Sanyo Minghua Electric Co., Ltd ,the book net assets is much more than the investment return , the Non-operation revenue was 30.33 million yuan. Item of non-recurring gains and losses Amount from beginning of year to the end of report period Profit and loss from disposal of non-current assets 1,408,722.03 Tax returned/reduced by chance 1,115.75 Government subsidies which were included in the current profits and losses 3,713,383.34 The income of investment from disposal of Finance asset held available for sales 27,467,019.93 Other non-operating incomes and expenses except the above mentioned 308,934.59 Income tax effects 5,008,374.57 Minority equity interests effects (after tax) 17,840.17 To tal 27,872,960.90 3 2.2 Total number and particulars of the shareholders by the end of the report period To tal shareholders at the end of report period 39,949 Shareholding of top ten shareholders Name Nature Proportion Total number Number of shares with sale restriction Number of pledged shares or shares frozen Dalian Bingshan Group Co., Ltd. Domestic non-state-owned legal person 19.96% 170,916,934 0 SANYO ELECTRIC CO LTD Foreign legal person 8.58% 73,503,150 0 HUATAI securities co., ltd Domestic non-state-owned legal person 2.20% 18,846,233 0 ZHAOSHANG securities co., ltd Domestic non-state-owned legal person 2.12% 18,189,814 0 Zheshang Juchao industry grow hybrid securities investment fund Others 2.11% 18,109,511 0 National Social Security Funds 104 Portfolio Others 1.31% 11,199,297 0 National Social Security Funds 503 Portfolio Others 0.96% 8,210,314 0 HEZHONG life insurance co., ltd Others 0.73% 6,219,672 0 Lin Zhenming Foreign natural person 0.72% 6,190,000 0 Sun Huiming Domestic natural person 0.66% 5,634,499 0 Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales Name of shareholder EORP (shares) Type Dalian Bingshan Group Co., Ltd. 170,916,934 A SANYO ELECTRIC CO LTD 73,503,150 B HUATAI securities co., ltd 18,846,233 A ZHAOSHANG securities co., ltd 18,189,814 A Zheshang Juchao industry grow hybrid securities investment fund 18,109,511 A National Social Security Funds 104 Portfolio 11,199,297 A National Social Security Funds 503 Portfolio 8,210,314 A HEZHONG life insurance co., ltd 6,219,672 A Lin Zhenming 6,190,000 B Sun Huiming 5,634,499 B Notes to the associated relationship and uniform actions of the above shareholders Dalian Bingshan Group Co., Ltd. had the association relationship with Sanyo Electric Co., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds 26.6% of Dalian Bingshan Group Co., Ltd.'s equity. Did the Company's shareholders conduct the agreed repurchase transactions in the reporting period? □ Yes √ No Information on the total number of preferred shareholders and the shares held by top ten preferred shareholders as of the end of the reporting period □ Yes √ No 4 §3 Important Matters 3.1 Major changes in main financial items and indexes, and description of the cause √ Applicable □ Inapplicable 1. Monetary fund has declined significantly over that of year-beginning, mainly because fund-raise capital from privately offering of A-share decreased after payment for fund-raised projects; 2. Dividend receivable has increased significantly over that of year-beginning, mainly because dividend receivable which has not yet due increased; 3. Other current asset has declined significantly over that of year-beginning, mainly because amount transfer-in from pending deduct VAT on purchase decreased; 4. Investment real estate has increased significantly over that of year-beginning, mainly due to the tranfer-in from rental fixed assets and intangible assets; 5. Fixed asset has increased significantly over that of year-beginning, mainly because new construction in some factories are transfer to fixed assets from construction in progress; 6. Construction in progress has declined significantly over that of year-beginning, mainly because new construction in some factories are transfer to fixed assets from construction in progress; 7. Long-term un-amortized expense has increased significantly over that of year-beginning, mainly because new loyalities to be amortized in the period in the period; 8. Short-term loans have increased significantly over that of year-beginning, mainly because debt of honour increased in the period; 9. Wages payable has declined significantly over that of year-beginning, mainly because accrual year-end bonus for year of 2016 has paid in first quarter of 2017; 10. Other account payable has increased significantly over that of year-beginning, mainly because payable account fo r equity transfer to related party is not in payment period; 11. Deferred income has increased significantly over that of year-beginning, mainly because government grants received in the period increased; 12. Taxes and surcharge has increased significantly on a y-o-y basis, mainly because the taxes in administration expenses have adjsuted to taxes and surcharge according to the regulation; 13. Financial expenses have increased significantly on a y-o-y basis, mainly because interest expenses increased with the growth of debt of honour in the period; 14. Non-operation revenue has decreased significantly on a y-o-y basis, mainly because at same period of last year, we purchased 70% euqity of Dalian Sanyo Minghua Electric Co., Ltd., the book net assets are greater than transferee price; 15. Net cash flow arising from operation activities have decreased significantly on a y-o-y basis, mainly because the cash paid for good purchasement and receiving labor services in the period increased; 16. Net cash flow arising from financing activities have decreased significantly on a y-o-y basis, mainly because raised-fund from privately offering of A-share increased at same period of last year, and the company received a special fund from CDB Development Fund. 3.2 Analytic description of major matters, their influence and solutions Applicable√ Inapplicable 3.3 Commitments of the Company or its shareholders holding 5% or higher of the shares in the reporting period or carried to the reporting period Applicable√ Inapplicable 3.4 Precautions on forecasting of 2017, the accumulated net profit may be turned into loss or change greatly compared with that in the same period of the last year, and description of the cause □ Applicable √ Inapplicable 3.5 Securities investment □Applicable√ Inapplicable 3.6 Derivative investment □ Applicable √ Not applicable During the reporting period, the Company does not exist derivative investment. 3.7Table of investigation, communication, interview received Receiving time Way of receiving Received object type Basic situation index July. 6, 2017 Investors communication meetings Institution http://irm.cninfo.com.cn/ssessgs/S000530 July. 13, 2017 Field investigation Institution http://irm.cninfo.com.cn/ssessgs/S000530 5 July. 19, 2017 Field investigation Institution http://irm.cninfo.com.cn/ssessgs/S000530 Aug.28,2017 Telephone communication Institution http://irm.cninfo.com.cn/ssessgs/S000530 Sep.8, 2017 Field investigation Institution http://irm.cninfo.com.cn/ssessgs/S000530 Sep.13, 2017 Field investigation Institution http://irm.cninfo.com.cn/ssessgs/S000530 Sep.25, 2017 Field investigation Institution http://irm.cninfo.com.cn/ssessgs/S000530 3.8 Violation of guaranty □ Applicable √ Not applicable 3.9 Non-operation capital occupation by holding shareholders and their related parties in the listed company □ Applicable √ Not applicable 3.10 Performance of precise poverty alleviation social responsibility (1) In the third quarter of 2017, the company joined hands with the controlling shareholders and continued to implement the targeted poverty alleviation to the targeted poverty alleviation unit �C Songlin Village, Guangmingshan Town, Zhuanghe City. (2) Follow-up targeted poverty alleviation plan the company will continue to promote the targeted poverty alleviation work, combine with the government's policy on poverty alleviation, and solve the site, road and traffic problems in poverty alleviation and the reemployment of surplus labors. §4 Financial Report (attached) Not audited. Board of Directors of Dalian Refrigeration Co., Ltd. October 25, 2017 6 BALANCE SHEET Prepared by Dalian Refrigeration Co., Ltd. September30, 2017 Unit: RMB Yuan Assets 30-Sep-2017 31-Dec-2016 Consolidation Parent Company Consolidation Parent Company Current assets: 498,472,064.88 347,093,428.58 715,215,638.54 496,417,106.54 Monetary funds Financial assets which are measured by fair value and wh ich changes are recorded in current profit and loss Derivative financial assets Notes receivable 126,462,187.73 59,316,212.01 126,408,249.59 90,509,540.07 Accounts receivable 977,410,445.06 245,940,937.79 807,109,959.54 117,575,405.74 Accounts in advance 138,388,679.82 68,333,561.09 108,033,313.10 96,269,883.15 Interest receivables 723,955.56 723,955.56 Dividend receivable 19,800,000.00 19,800,000.00 39,025.00 Other receivables 60,426,649.71 5,648,650.17 57,257,456.57 4,368,505.07 Inventories 401,726,404.28 158,318,466.94 349,538,424.06 151,230,744.47 Assets held for sale Non-current asset due within one year Other current assets 26,649,414.16 15,643,114.18 43,254,044.92 30,563,139.06 To tal current assets 2,249,335,845.64 920,094,370.76 2,207,580,066.88 987,658,279.66 Non-current assets: Finance asset held available for sales 600,060,757.44 598,745,614.94 545,565,116.64 544,249,974.14 Held-to-maturity investment Long-term account receivable Long-term equity investment 1,552,642,151.30 2,030,202,620.00 1,292,912,901.49 1,713,412,501.09 Investment property 92,159,754.39 87,450,744.27 28,605,652.94 28,605,652.94 Fixed assets 749,937,133.59 515,223,092.42 511,008,545.87 274,262,264.28 Construction in progress 130,505,386.39 117,613,249.04 321,646,676.78 320,329,247.78 Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 133,348,743.11 72,197,729.64 154,714,212.52 88,113,279.88 Expense on Research and Development Goodwill 1,750,799.49 1,750,799.49 Long-term expenses to be apportioned 10,655,095.05 9,823,351.21 4,448,719.77 3,658,276.80 Deferred income tax asset 28,362,896.81 7,036,499.35 27,753,747.94 6,751,619.50 Other non-current asset To tal non-current asset 3,299,422,717.57 3,438,292,900.87 2,888,406,373.44 2,979,382,816.41 To tal assets 5,548,758,563.21 4,358,387,271.63 5,095,986,440.32 3,967,041,096.07 7 BALANCE SHEET (CONTINUED) Prepared by Dalian Refrigeration Co., Ltd. September 30, 2017 Unit: RMB Yuan Liabilities and shareholders’ equity 30-Sep-2017 31-Dec-2016 Consolidation Parent Company Consolidation Parent Company Current liabilities: Short-term loans 306,139,700.00 230,000,000.00 45,000,000.00 Derivative financial liabilities Notes payable 189,561,041.34 94,429,979.75 194,562,734.79 85,834,371.87 Accounts payable 900,164,546.01 264,954,218.40 857,725,428.48 340,987,669.38 Accounts received in advance 110,431,193.65 33,974,149.03 150,098,892.29 74,949,113.25 Wa ge payable 31,622,999.61 1,735,954.54 50,256,392.86 9,796,460.53 Ta xes payable 13,072,765.83 1,321,376.84 18,405,089.48 1,234,137.19 Interest payable Dividend payable 863,516.60 533,156.00 863,516.60 533,156.00 Other accounts payable 203,009,413.51 168,662,219.99 115,320,734.80 74,954,775.74 Liabilities held for sale Non-current liabilities due within one year Other current liabilities To tal current liabilities 1,754,865,176.55 795,611,054.55 1,432,232,789.30 588,289,683.96 Non-current liabilities: Long-term loans 160,000,000.00 160,000,000.00 160,000,000.00 160,000,000.00 Bonds payable Long-term account payable Long-term wage payable Special accounts payable Projected liabilities Deferred income 87,558,332.38 43,833,829.38 57,396,619.00 12,836,619.00 Deferred income tax liabilities 84,071,200.82 84,071,200.82 75,683,681.95 75,683,681.95 Other non-current liabilities To tal non-current liabilities 331,629,533.20 287,905,030.20 293,080,300.95 248,520,300.95 To tal liabilities 2,086,494,709.75 1,083,516,084.75 1,725,313,090.25 836,809,984.91 Shareholders’ equity 856,487,181.00 856,487,181.00 611,776,558.00 611,776,558.00 Share capital Other equity instruments Capital public reserve 761,190,210.25 800,768,597.54 1,052,686,774.25 1,036,115,161.54 Specialized reserve 67,615,856.00 67,615,856.00 67,615,856.00 67,615,856.00 Other comprehensive income 478,904,931.05 477,942,830.38 431,639,323.52 430,413,556.77 Special preparation Surplus public reserve 649,787,077.21 649,787,077.21 620,578,847.52 620,578,847.52 Retained profit 706,969,727.87 557,501,356.75 652,022,101.57 498,962,843.33 Tr anslation of foreign currency capital To tal owner’s equity attributable toparent company 3,385,723,271.38 3,274,871,186.88 3,301,087,748.86 3,130,231,111.16 Minority interests 76,540,582.08 69,585,601.21 To tal owner’s equity 3,462,263,853.46 3,274,871,186.88 3,370,673,350.07 3,130,231,111.16 To tal liabilities and shareholder’s equity 5,548,758,563.21 4,358,387,271.63 5,095,986,440.32 3,967,041,096.07 Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua 8 INCOME STATEMENT Prepared by Dalian Refrigeration Co., Ltd. July-September, 2017 Unit: RMB Yuan Items July-September, 2017 July-September, 2016 Consolidation Parent Company Consolidation Parent Company I. Total sales 461,323,140.51 132,540,826.06 493,909,342.57 131,345,751.20 Including: Operating income 461,323,140.51 132,540,826.06 493,909,342.57 131,345,751.20 II. Total operating cost 457,870,018.58 139,076,098.49 494,539,952.02 144,650,331.51 Including: Operating cost 363,446,752.51 110,478,587.15 410,959,347.84 117,423,132.93 Ta xes and associate charges 5,277,962.71 2,121,866.30 2,538,292.81 15,518.60 Selling and distribution expenses 27,043,064.14 18,281.00 25,044,923.93 224,969.56 Administrative expenses 55,968,192.35 24,051,406.94 53,442,898.60 27,135,839.31 Financial expense 2,842,555.17 1,325,964.58 311,915.52 -108,185.43 Impairment loss 3,291,491.70 1,079,992.52 2,242,573.32 -40,943.46 Add:Gain/(loss) from change in fair value Gain/(loss) from investment 44,739,708.71 44,948,913.03 36,234,659.92 37,119,153.99 Including: income form investment on affiliated enterprise and jointly enterprise 44,739,708.71 44,948,913.03 36,231,499.05 36,808,702.41 III. Operating profit 48,192,830.64 38,413,640.60 35,604,050.47 23,814,573.68 Add: non-business income 270,102.02 -566,084.83 31,297,702.84 280,130.24 Including: profit from non-current asset disposal 1,332,996.21 1,332,294.89 95,806.30 92,212.24 Less: non-business expense 223,135.68 20,782.48 160,486.74 4,744.75 Including: loss from non-current asset disposal 52,127.18 20,782.48 8,240.87 4,744.75 IV. Total profit 48,239,796.98 37,826,773.29 66,741,266.57 24,089,959.17 Less: Income tax -407,361.82 -630,201.83 -206,448.58 -452,377.27 V. Net profit 48,647,158.80 38,456,975.12 66,947,715.15 24,542,336.44 Net profit attributable to parent company 47,073,348.70 38,456,975.12 66,092,145.53 24,542,336.44 Minority shareholders’ gains and losses 1,573,810.10 855,569.62 VI.After-tax net amount of other comprehensive incomes 25,798,148.04 25,798,148.04 -1,282,363.91 -1,279,203.04 After-tax net amount of other comprehensiveincomes attributable to owners of the Company 25,798,148.04 25,798,148.04 -1,282,363.91 -1,279,203.04 (I) Other comprehensive incomes that willnot be reclassified into gains and losses 1. Changes in net liabilities or assets witha defined benefit plan upon re-measurement 2. Enjoyable shares in othercomprehensive incomes in investees that cannot bereclassified into gains and losses under the equitymethod …… (II) Other comprehensive incomes that willbe reclassified into gains and losses 25,798,148.04 25,798,148.04 -1,282,363.91 -1,279,203.04 1. Enjoyable shares in othercomprehensive incomes in investees that will bereclassified into gains and losses under the equitymethod -3,160.87 2. Gains and losses on fair value changesof available-for-sale financial assets 25,798,148.04 25,798,148.04 -1,279,203.04 -1,279,203.04 3. Gains and losses on reclassifyingheld-to-maturity investments into available-for-salefinancial assets 4. Effective hedging gains and losses oncash flows 5. Foreign-currency financial statementtranslation difference 6. Other 9 …… After-tax net amount of other comprehensiveincomes attributable to minority shareholders VII Total comprehensive income 74,445,306.84 64,255,123.16 65,665,351.24 23,263,133.40 To tal comprehensive income attributable to parent company 72,871,496.74 64,255,123.16 64,809,781.62 23,263,133.40 To tal comprehensive income attributable to minority shareholders 1,573,810.10 855,569.62 VIII. Earnings per share (I) basic earnings per share 0.055 0.080 (II) diluted earnings per share 0.055 0.080 Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua 10 INCOME STATEMENT Prepared by Dalian Refrigeration Co., Ltd. January-September, 2017 Unit: RMB Yuan Items January -September, 2017 January -September, 2016 Consolidation Parent Company Consolidation Parent Company I. Total sales 1,463,701,858.01 482,369,852.31 1,324,783,342.22 451,914,824.08 Including: Operating income 1,463,701,858.01 482,369,852.31 1,324,783,342.22 451,914,824.08 II. Total operating cost 1,449,984,242.50 488,900,452.30 1,332,206,065.28 470,745,784.51 Including: Operating cost 1,180,728,657.56 406,474,570.63 1,079,224,132.33 385,895,600.37 Ta xes and associate charges 13,455,129.66 5,825,034.32 8,896,009.23 1,004,749.66 Selling and distribution expenses 70,897,475.42 692,396.60 67,396,800.50 1,382,334.99 Administrative expenses 165,535,016.23 77,040,332.92 161,593,690.07 82,010,755.22 Financial expense 5,837,283.11 2,376,432.94 1,843,749.13 72,383.00 Impairment loss 13,530,680.52 -3,508,315.11 13,251,684.02 379,961.27 Add:Gain/(loss) from change in fair value Gain/(loss) from investment 132,615,004.40 150,890,974.09 112,183,679.17 113,807,294.70 Including: income form investment on affiliated enterprise and jointly enterprise 93,420,749.34 94,331,618.44 96,219,092.90 97,789,590.60 III. Operating profit 146,332,619.91 144,360,374.10 104,760,956.11 94,976,334.27 Add: non-business income 7,101,068.77 4,299,927.44 39,025,930.77 6,821,705.97 Including: profit from non-current asset disposal 1,476,325.98 1,410,407.18 160,090.86 110,846.80 Less: non-business expense 291,011.55 20,782.48 444,511.23 69,992.87 Including: loss from non-current asset disposal 67,603.95 20,782.48 197,677.54 9,992.87 IV. Total profit 153,142,677.13 148,639,519.06 143,342,375.65 101,728,047.37 Less: Income tax 5,754,184.47 -284,879.85 5,331,521.75 537,279.94 V. Net profit 147,388,492.66 148,924,398.91 138,010,853.90 101,190,767.43 Net profit attributable to parent company 145,333,511.79 148,924,398.91 136,724,864.44 101,190,767.43 Minority shareholders’ gains and losses 2,054,980.87 1,285,989.46 VI.After-tax net amount of other comprehensive incomes 47,265,607.53 47,529,273.61 -157,600,975.09 -157,597,814.22 After-tax net amount of other comprehensiveincomes attributable to owners of the Company 47,265,607.53 47,529,273.61 -157,600,975.09 -157,597,814.22 (I) Other comprehensive incomes that willnot be reclassified into gains and losses 1. Changes in net liabilities or assets witha defined benefit plan upon re-measurement 2. Enjoyable shares in othercomprehensive incomes in investees that cannot bereclassified into gains and losses under the equitymethod …… (II) Other comprehensive incomes that willbe reclassified into gains and losses 47,265,607.53 47,529,273.61 -157,600,975.09 -157,597,814.22 1. Enjoyable shares in othercomprehensive incomes in investees that will bereclassified into gains and losses under the equitymethod -263,666.08 -3,160.87 2. Gains and losses on fair value changesof available-for-sale financial assets 47,529,273.61 47,529,273.61 -157,597,814.22 -157,597,814.22 3. Gains and losses on reclassifyingheld-to-maturity investments into available-for-salefinancial assets 4. Effective hedging gains and losses oncash flows 5. Foreign-currency financial statementtranslation difference 11 6. Other …… After-tax net amount of other comprehensiveincomes attributable to minority shareholders VII Total comprehensive income 194,654,100.19 196,453,672.52 -19,590,121.19 -56,407,046.79 To tal comprehensive income attributable to parent company 192,599,119.32 196,453,672.52 -20,876,110.65 -56,407,046.79 To tal comprehensive income attributable to minority shareholders 2,054,980.87 1,285,989.46 VIII. Earnings per share (I) basic earnings per share 0.170 0.169 (II) diluted earnings per share 0.170 0.169 Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua 12 CASH FLOW STATEMENT Prepared by Dalian Refrigeration Co., Ltd. January -September, 2017 Unit: RMB Yuan Items January -September, 2017 January -September, 2016 Consolidation Parent Company Consolidation Parent Company I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 1,089,604,393.54 322,916,418.08 997,081,433.32 415,890,050.33 Write-back of tax received 11,784,308.34 1,115.75 10,218,917.13 Other cash received concerning operating activities 74,180,405.39 49,361,918.67 35,908,517.97 18,123,710.76 Subtotal of cash inflow arising from operating activities 1,175,569,107.27 372,279,452.50 1,043,208,868.42 434,013,761.09 Cash paid for purchasing commodities and receiving labor service 943,401,881.56 373,105,975.21 670,278,844.07 295,254,192.60 Cash paid to/for staff and workers 254,107,604.80 98,717,742.52 236,871,965.97 96,068,745.13 Taxes paid 66,754,534.59 7,375,509.33 94,211,162.16 16,138,350.04 Other cash paid concerning operating activities 114,898,847.58 16,487,335.39 106,445,875.63 32,101,823.35 Subtotal of cash outflow arising from operating activities 1,379,162,868.53 495,686,562.45 1,107,807,847.83 439,563,111.12 Net cash flows arising from operating activities -203,593,761.26 -123,407,109.95 -64,598,979.41 -5,549,350.03 II. Cash flows arising from investing activities: Cash received from recovering investment 1,500,000.00 1,500,000.00 2,670,375.54 Cash received from investment income 63,490,765.66 73,451,740.66 63,377,286.07 63,643,137.65 Net cash received from disposal of fixed, intangible and other long-term assets 211,614.02 263,772.00 1,328,170.00 Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities 65,202,379.68 74,951,740.66 63,641,058.07 67,641,683.19 Cash paid for purchasing fixed, intangible and other long-term assets 100,187,319.74 89,258,455.83 242,078,048.08 233,872,176.27 Cash paid for investment 176,660,000.00 176,660,000.00 55,615,021.94 167,200,750.09 Net cash received from payment of subsidiaries and other business units -20,156,006.67 21,535,918.03 Other cash paid concerning investing activities Subtotal of cash outflow from investing activities 276,847,319.74 265,918,455.83 277,537,063.35 422,608,844.39 Net cash flows arising from investing activities -211,644,940.06 -190,966,715.17 -213,896,005.28 -354,967,161.20 III. Cash flows arising from financing activities Cash received from absorbing investment 4,900,000.00 563,935,054.34 563,445,054.34 Including:Cash received from absorbing minority shareholders' equity investment by subsidiaries 4,900,000.00 490,000.00 Cash received from loans 392,729,700.00 260,000,000.00 296,400,000.00 240,000,000.00 Other cash received concerning financing activities 21,576,815.56 20,710,827.68 720,332.73 Subtotal of cash inflow from financing activities 419,206,515.56 260,000,000.00 881,045,882.02 804,165,387.07 Cash paid for settling debts 132,340,000.00 30,000,000.00 175,200,000.00 107,600,000.00 13 Cash paid for dividend and profit distributing or interest paying 67,199,663.57 65,112,892.02 41,227,843.03 37,248,332.24 Including: dividends or profit paid bysubsidiaries to minority shareholders Other cash paid concerning financing activities 11,893,823.00 7,464,999.44 3,430,000.00 Subtotal of cash outflow from financing activities 211,433,486.57 95,112,892.02 223,892,842.47 148,278,332.24 Net cash flows arising from financing activities 207,773,028.99 164,887,107.98 657,153,039.55 655,887,054.83 IV. Influence on cash due to fluctuation in exchange rate 405,091.23 163,039.18 -746,153.75 -22,115.29 V. Net increase of cash and cash equivalents -207,060,581.10 -149,323,677.96 377,911,901.11 295,348,428.31 Add: Balance of cash and cash equivalents at the period -begin 691,238,822.98 495,217,106.54 255,381,841.47 147,439,134.15 VI. Balance of cash and cash equivalents at the period�Cend 484,178,241.88 345,893,428.58 633,293,742.58 442,787,562.46 Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua