新和成:2022年第一季度报告(英文版)

Securities Code:002001                                                             Securities Abbr: NHU




                                Zhejiang NHU Company Ltd.

                                        Q1 2022 Report


The Company and whole members of the BOD guarantee that the information disclosed is
authentic, accurate, complete and free from any false records, misleading statements or significant
omissions.



Important Content Reminder:

1. The Board of Directors, Board of Supervisors, directors, supervisors and senior executives of
Zhejiang NHU Company Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the
information presented in this report is authentic, accurate, complete and free of any false records,
misleading statements or material omissions, and they will bear joint and several liabilities for such
information.

2. The Company’s legal representative, the officer in charge of accounting, and the head of
accounting department hereby declare and warrant that the financial information in this report is
authentic, accurate and complete.

3. Whether the First Quarterly Report has been audited or not

□ Yes √ No



Note:

This Report has been prepared in both Chinese and English version, and the English version is for
reference only. Should there be any discrepancies or misunderstandings between the two versions,
the Chinese versions shall prevail. The complete published Chinese First Quarterly Report may be
obtained at www.cninfo.com.cn.




                                                  1
 Securities Code:002001                                                                                      Securities Abbr: NHU



                                       Section Ⅰ Key Accounting Data

Ⅰ Key Accounting Data and Financial Indicators

Whether the company needs performed retroactive adjustment or restatement of accounting data in prior years or not
√ Yes □ No
Retroactive adjustment or restatement of reasons
Changes in accounting policies and other reasons
                                                                                                        Increase/decrease of the
                                                                                                        current reporting period
                                                                         Q1 2021                        compared with the same
           Items                     Q1 2022                                                            period of the previous
                                                                                                        year
                                                                                     After
                                                       Before adjustment                                    After adjustment
                                                                               adjustment[Note2]

Operating revenue (yuan)         4,307,991,748.95       3,743,831,818.61         3,790,255,566.08                           13.66%
Net profit attributable to
shareholders of listed           1,203,327,294.72       1,136,774,983.04         1,144,090,085.76                           5.18%
company (yuan)
Net profit attributable to
shareholders of listed
company after deducting           1,142,767,059.69       1,090,734,420.46         1,098,049,523.18                           4.07%
non-recurring profit or loss
(yuan)
Net cash flows from
                                    422,441,679.66       1,076,704,398.64         1,084,019,501.36                          -61.03%
operating activities (yuan)

Basic EPS (yuan/share)                          0.47           0.44[Note1]                       0.44                        6.82%

Diluted EPS (yuan/share)                        0.47           0.44[Note1]                       0.44                        6.82%

                                                                                                            Decreased by 0.39
Weighted average ROE                          5.36%                  5.71%                     5.75%
                                                                                                            percentage points
                                                                                                        Increase/decrease of the
                                                                                                        current reporting period
                                                                      Dec. 31, 2021
                                                                                                        compared with the end of
            Items                 Mar. 31, 2022
                                                                                                        the previous year

                                                                                     After
                                                       Before adjustment                                    After adjustment
                                                                               adjustment[Note2]

Total assets (yuan)             36,866,945,527.18       34,692,165,111.88        34,724,025,476.79                           6.17%

Net assets attributable to
shareholders of listed          22,923,397,133.57       21,799,977,645.94        21,831,838,010.85                           5.00%
company (yuan)
[Note1] After the implementation of the Company’s 2020 profit distribution plan, its share capital was increased from 2,148,662,300
shares to 2,578,394,760 shares. The above EPS of the comparative period was recalculated based on the adjusted share capital.

[Note2] The company has implemented The Interpretation of Accounting Standards for Business Enterprises No. 15 since January 1,
2022. The interpretation requires that if the company sells the products or by-products produced before the fixed assets reach the
expected serviceable state or during the research and development process, the income and cost related to the trial operation sales

                                                                 2
Securities Code:002001                                                                                         Securities Abbr: NHU



shall be accounted for separately and included in the current profit and loss, The net amount of the revenue from trial operation sales
after offsetting the relevant costs shall not be used to offset the cost of fixed assets or R&D expenses. The company makes retroactive
adjustment according to requirements.


II Non-recurring Profit or Loss for this Period

√ Applicable □ Not applicable
                                                                                                                  Unit: RMB yuan
                                 Items                                         Q1 2022                        Remarks

Gains or losses on disposal of non-current assets,
                                                                                     4,679,172.59
including write-off of provision for impairment
Government grants included in profit or loss (excluding
those closely related to operating activities of the
Company, satisfying government policies and regulations,                            33,227,394.33
and continuously enjoyed with certain quantity or quota
based on certain standards)
Gains or losses on assets consigned to the third party for
                                                                                     8,305,996.39
investment or management
Gains or losses on changes in fair value of held-for-trading
financial assets and held-for-trading financial liabilities,
and investment income from disposal of held-for-trading
                                                                                    16,998,294.74
financial assets and held-for-trading financial liabilities,
excluding those arising from hedging business related to
operating activities
Other non-operating revenue or expenditures                                          1,012,255.32
Less: Enterprise income tax affected                                                 3,636,037.36
    Non-controlling interest affected (after tax)                                        26,840.98
Total                                                                               60,560,235.03                 --

Details of other profit and loss items that meet the definition of non-recurring profit and loss
□ Applicable √ Not applicable
The Company does not have any other profit and loss items that meet the definition of non-recurring profit and loss.
Explanation on defining the non-recurring profit and loss items listed in the No. 1 Explanatory Announcement on
Information Disclosure for Companies Offering Their Securities to Public-Non-recurring Profit and loss as
non-recurring profit and loss items.
□ Applicable √ Not applicable
The Company does not define the non-recurring profit and loss items listed in the No. 1 Explanatory Announcement on
Information Disclosure for Companies Offering Their Securities to Public-Non-recurring Profit and loss as recurring
profit and loss items.


III Major Changes of Main Items in Financial Statements and Financial Indicators within the Reporting
Period, as well as the Reasons for the Changes

√ Applicable □Not applicable




                                                                  3
Securities Code:002001                                                                               Securities Abbr: NHU



1. Balance Sheet Position

(1) The closing balance of advances paid increased by 38.54% compared to the closing balance at the beginning of the
year. It was mainly due to the increase of prepayment in raw materials and fuel power in the current reporting period.
(2) The closing balance of other current assets increased by 54.60% compared to the closing balance at the beginning of
the year. It was mainly due to the increase in expenditure on purchasing financial products in the current reporting
period.
(3) The closing balance of other non-current assets increased by 31.28% compared to the closing balance at the
beginning of the year. It was mainly due to the increase of prepayment in equipment in the current reporting period.
(4) The closing balance of employee benefits payable decreased by 42.77% compared to the closing balance at the
beginning of the year. It was mainly due to the payments on year-end bonuses in the current reporting period.
(5) The closing balance of other current liabilities decreased by 40.15% compared to the closing balance at the
beginning of the year. It was mainly due to the decrease of advance payments on sales in the current reporting period.
(6) The closing balance of treasury shares increased by 35.00% compared to the closing balance at the beginning of the
year. It was mainly due to the repurchase of part of companies’ social public shares.
(7) The closing balance of other comprehensive income decreased by 118.69% compared to the closing balance at the
beginning of the year. It was mainly due to the difference of translating foreign currency financial statement.


2. Income Statement Position

(1) R&D expenses in the current Q1 period increased by 42.50% compared to the same period of last year. It was
mainly due to the increase of material inputs and salary in the current Q1 period.
(2) Investment income in the current Q1 period increased by 447.44% compared to the same period of last year. It was
mainly due to the increase of investment income in associated enterprises and the increase of delivery income of
forward foreign exchange settlement and sales products in the current Q1 period.
(3) Gains on changes in fair value in the current Q1 period increased by 47.08% compared to the same period of last
year. It was mainly due to the fluctuation in exchange rate of undelivered forward foreign exchange settlement and sales
products in the current Q1 period.
(4) Assets impairment loss in the current Q1 period increased by156.48% compared to the same period of last year. It
was mainly due to the increase of provision for inventory declines in the current Q1 period.
(5) Gains on asset disposal in the current Q1 period increased by 154.10% compared to the same period of last year. It
was mainly due to the increase of gain on disposal of non-current assets in the current Q1 period.


3. Cash Flow Statement Position

(1) Net cash flow generated by operating activities in the current Q1 period decreased by 61.03% compared to the same
period of last year. It was mainly due to the increase in payment for raw materials in the current Q1 period.
(2) Net cash flow generated by investment activities in the current Q1 period decreased by 46.30% compared to the
same period of last year. It was mainly due to the increase in expenditure on purchasing financial products and
purchasing and constructing fixed assets in the current Q1 period.




                                                             4
Securities Code:002001                                                                              Securities Abbr: NHU



                                  Section Ⅱ Shareholders Information

Ⅰ Total Number of Common Shareholders and Number of Preferred Shareholders with Voting Rights
Recovered and Information about Top 10 Shareholders

                                                                                                              Unit: share
                                                        Total number of preferred shareholders whose
Total number of common shareholders
                                                 64,016 voting rights have been recovered at the end of                 0
at the end of the reporting period
                                                        the reporting period(if any).
                                           Information about top 10 shareholders
                                           Shareholding                                     Shares pledged, marked or
                         Nature of         percentage Quantity of         Quantity of       frozen
Name of shareholder
                         shareholder                    shares            restricted shares
                                               (%)                                          Status         Quantity
                         Domestic
NHU Holding Group
                         non-state-own           48.55% 1,251,903,644                    0
Co., Ltd.
                         ed legal person
Hong Kong Securities
                         Overseas legal
Clearing Company                                  2.77%      71,338,496                  0
                         person
Limited
Shanghai Chongyang
Strategic Investment
                      Others                      1.75%      45,060,167                  0
Co., Ltd.-Chongyang
Strategic Huizhi Fund
JPMORGAN CHASE
                         Overseas legal
BANK,NATIONAL                                     1.13%      29,024,075                  0
                         person
ASSOCIATION
National Social
Security Fund No.503     Others                   0.80%      20,499,940                  0
Portfolio
National Social
Security Fund No.112     Others                   0.74%      19,186,092                  0
Portfolio
Guangdong
Fuyeshengde Asset
Management Co., Ltd -
                      Others                      0.54%      13,810,354                  0
Fuyeshengde No 1
Private Security
Investment Fund
                         Domestic
Hu Baishan                                        0.47%      12,163,274         9,122,455
                         natural person
Beijing Yuanfeng
Private Equity Fund
Management
Partnership (LP) -    Others                     0.46%      11,977,187                  0
Yuanfeng Value Private
Equity Investment
Fund
Kuwait Investment        Overseas legal
                                                  0.46%      11,733,502                  0
Authority                person
                          Information about top 10 shareholders without trading restrictions
                                                                                                  Type of shares
         Name of shareholder                      Quantity of non-restricted shares
                                                                                               Type          Quantity


                                                             5
Securities Code:002001                                                                                     Securities Abbr: NHU



                                                                                                 RMB ordinary
NHU Holding Group Co., Ltd.                                                     1,251,903,644                 1,251,903,644
                                                                                                 shares
Hong Kong Securities Clearing                                                                    RMB ordinary
                                                                                    71,338,496                       71,338,496
Company Limited                                                                                  shares
Shanghai Chongyang Strategic
                                                                                                 RMB ordinary
Investment Co., Ltd. - Chongyang                                                   45,060,167                       45,060,167
                                                                                                 shares
Strategic Huizhi Fund
JPMORGAN CHASE                                                                                   RMB ordinary
                                                                                    29,024,075                       29,024,075
BANK,NATIONAL ASSOCIATION                                                                        shares
National Social Security Fund No.503                                                             RMB ordinary
                                                                                    20,499,940                       20,499,940
Portfolio                                                                                        shares
National Social Security Fund No.112                                                             RMB ordinary
                                                                                    19,186,092                       19,186,092
Portfolio                                                                                        shares
Guangdong Fuyeshengde Asset
                                                                                                 RMB ordinary
Management Co., Ltd - Fuyeshengde                                                   13,810,354                       13,810,354
                                                                                                 shares
No 1 Private Security Investment Fund
Beijing Yuanfeng Private Equity Fund
Management Partnership (LP) -                                                                   RMB ordinary
                                                                                    11,977,187                        11,977,187
Yuanfeng Value Private Equity                                                                    shares
Investment Fund
                                                                                                 RMB ordinary
Kuwait Investment Authority                                                         11,733,502                        11,733,502
                                                                                                 shares
                                                                                                 RMB ordinary
Chongyang Group Co., Ltd.                                                           11,635,159                        11,635,159
                                                                                                 shares
                                       The above shareholder Hu Baishan is the director of NHU Holding Group
Explanation on associated relationship Co., Ltd. The Company does not know whether other shareholders have
or concerted actions among above
                                       relationships and whether they are persons acting in concert as defined in
shareholders
                                       Administration of the Takeover of Listed Companies Procedures.
                                             Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang
                                             Strategic Huizhi Fund holds 45,060,106 shares through client account of
                                             collateral securities for margin trading of Guotai Junan Securities Co., Ltd.;
                                             Guangdong Fuyeshengde Asset Management Co., Ltd - Fuyeshengde No 1
                                             Private Security Investment Fund holds 13,810,354 shares through client
Explanation on top 10 shareholders’         account of collateral securities for margin trading of Huatai Securities Co.,
participating in securities margin
                                             Ltd.; Beijing Yuanfeng Private Equity Fund Management Partnership (LP)
trading (if any)
                                             -Yuanfeng Value Private Equity Investment Fund holds 5,988,587 shares
                                             through client account of collateral securities for margin trading of Huatai
                                             Securities Co., Ltd.; Chongyang Group Co., Ltd. holds 11,634,955 shares
                                             through client account of collateral securities for margin trading of China
                                             Merchants Securities Co., Ltd..
Notes: Zhejiang NHU Co., Ltd. Repurchase Securities Account is among top 10 shareholders at the end of the reporting period, but do
not participate in the listing of the top 10 shareholders of the company.


II Total Number of Preferred Shareholders and Information about Top 10 Preferred Shareholders

□ Applicable √Not applicable




                                                                6
Securities Code:002001                                                                            Securities Abbr: NHU




                                   Section III Other Significant Events
√ Applicable □ Not applicable


Ⅰ Progress of the Share Repurchase Plan

At the 7th Meeting of the 8th Board of Directors held on August 18, 2021, Zhejiang NHU Co., Ltd. (hereinafter referred
to as “the company”) deliberated and adopted The Proposal on Share Repurchase Plan of the Company, agreed that the
company would use its own funds to repurchase part of the public shares of the company in the form of centralized
bidding transaction. And the shares repurchased would be used for implementing equity incentive plan or employee
stock ownership plan. The total amount of repurchase would be RMB300-600mn, and the repurchase price would be no
more than RMB41/share. The specific amount of shares repurchased and its proportion in the total share capital shall be
subject to the actual amount of shares repurchased at the expiration of the repurchase period. The implementation period
of the share repurchase plan shall not exceed 12 months from the date when the board of directors of the company
deliberates and adopts The Proposal on Share Repurchase Plan of the Company. By March 31, 2022, the company has
repurchased 14,552,236 shares in the form of centralized bidding trading through Zhejiang NHU Co., Ltd. Repurchase
Securities Account, accounting for 0.5644% of the company's total share capital. The maximum transaction price is
RMB 31.88/ share, the minimum transaction price is RMB 26.15/ share, and the cumulative transaction amount is RMB
432,464,683.56 (excluding transaction costs). The share repurchase plan complies with the requirements of relevant
laws and regulations and the company's established repurchase plan. For more details, please refer to The
Announcement      on     the   Progress   of   Share   Repurchase   of   the   Company     (2022-008)    published   on
http://www.cninfo.com.cn


II Progress of the Third Employee Stock Ownership Plan

The third employee stock ownership plan of the Company was deliberated and adopted by the second extraordinary
shareholders’ meeting of 2020 held on November 11, 2020, the current employee stock ownership plan is managed by
the Company itself, and the Company’s shares are acquired and held by stock purchase through secondary market, the
duration shall not exceed 24 months. On February 26, 2022, the number of shares held by the third employee stock
ownership plan of the Company was 10,131,522, accounting for 0.39% of the company's total existing share capital,
and the lock-up period expired. For more details, please refer to The Suggestive Announcement on the Expiration of
Lock-up period of the Third Employee Stock Ownership plan (2022-004)published on http://www.cninfo.com.cn


III Progress of Investment Project with Raised Funds

With the approval of [2017] No. 1684 document of China Securities Regulatory Commission, the company's lead
underwriter, CSC Securities Co., Ltd., privately issued 175 million common shares (A shares) to specific objects at an
issue price of RMB 28.00/share, raising a total of RMB 4,900 million. After deducting the underwriting and
recommendation fees of RMB 30 million yuan (including tax), the raised funds amounted to RMB 4,870 million, which
was remitted to the raised funds supervision account of the company by the lead underwriter, CSC Securities Co., Ltd.
on December 7, 2017. In addition, after deducting lawyer fees, audit fees, capital verification fees and other issuance


                                                            7
Securities Code:002001                                                                             Securities Abbr: NHU



expenses of RMB 4.62 million (excluding tax), and considering the deductible VAT input tax of RMB 1.70 million of
underwriting fees and recommendation fees deducted by the lead underwriter, the net amount of funds raised was RMB
4,867.08 million. The availability of the above raised funds has been verified by Tianjian Certified Public Accountants
(special general partnership), who issued the capital verification report ([2017] No. 503).
From January 1 to March 31, 2022, the actual use of the raised funds was RMB 232.68 million, and the accumulated
investment of the raised funds project was RMB 2,320.12million. By March 31, 2022, the balance of raised funds was
RMB 3,187.45million (including financial products and structured deposits, the net amount of interest on cash in bank
less handling charges, gains on financial products and structured deposits received on an accumulated basis).


                                 Section Ⅳ Quarterly Financial Statements

Ⅰ Financial Statements

1. Consolidated Balance Sheet
Prepared by Zhejiang NHU Co., Ltd.
                                                      Mar 31, 2022
                                                                                                       Unit: RMB Yuan
                         Items                                   Mar 31, 2022                     Jan 1, 2022
Current assets:
  Cash and bank balances                                              6,108,319,777.72                 5,952,909,626.94
  Settlement funds
  Loans to other banks
  Held-for-trading financial assets                                     908,276,322.92                 1,250,736,359.24
  Derivative financial assets
  Notes receivable                                                      329,579,552.94                   349,145,316.03
  Accounts receivable                                                 3,258,816,632.85                 2,755,168,573.14
  Receivables financing                                                 159,025,346.82                   182,891,179.65
  Advances paid                                                         109,407,357.31                    78,969,960.60
  Premiums receivable
  Reinsurance accounts receivable
  Reinsurance reserve receivable
  Other receivables                                                     309,137,517.45                   254,497,248.13
   Including: Interest receivable
                Dividend receivable                                                                        7,159,278.00
  Financial assets under reverse repo
  Inventories                                                         3,653,314,879.66                 3,193,657,367.16
  Contract assets
  Assets held for sale
  Non-current assets due within one year
  Other current assets                                                1,384,916,114.26                   895,782,268.87


                                                             8
Securities Code:002001                                                   Securities Abbr: NHU



                         Items                   Mar 31, 2022            Jan 1, 2022
Total current assets                                 16,220,793,501.93      14,913,757,899.76
Non-current assets:
  Loans and advances
  Debt investments
  Other debt investments
  Long-term receivables
  Long-term equity investments                          373,450,458.22         351,327,625.75
  Other equity instrument investments                    22,998,147.55          22,998,147.55
  Other non-current financial assets
  Investment property
  Fixed assets                                       14,273,343,958.04      14,350,779,852.73
  Construction in progress                            3,723,538,139.82       2,984,835,072.82
  Productive biological assets
  Oil & gas assets
  Right-of-use assets                                     3,046,634.36           3,123,637.11
  Intangible assets                                   1,512,226,751.57       1,521,729,757.66
  Development expenditures
  Goodwill                                                4,410,005.35
  Long-term prepayments                                  16,944,948.96          18,591,707.06
  Deferred tax assets                                    58,398,503.90          55,805,191.95
  Other non-current assets                              657,794,477.48         501,076,584.40
Total non-current assets                             20,646,152,025.25      19,810,267,577.03
Total assets                                         36,866,945,527.18      34,724,025,476.79
Current liabilities:
  Short-term borrowings                               1,812,995,465.03       1,403,332,827.92
  Central bank loans
  Loans from other banks
  Held-for-trading financial liabilities
  Derivative financial liabilities
  Notes payable                                         849,710,293.39         694,124,946.73
  Accounts payable                                    1,498,941,098.30       1,435,966,427.76
  Advances received
  Contract liabilities                                   46,962,512.57          61,135,258.36
  Financial liabilities under repo
  Absorbing deposit and interbank deposit
  Deposit for agency security transaction
  Deposit for agency security underwriting
  Employee benefits payable                             212,116,998.81         370,609,333.07


                                             9
Securities Code:002001                                                          Securities Abbr: NHU



                            Items                      Mar 31, 2022             Jan 1, 2022
  Taxes and rates payable                                     389,193,518.77          420,743,262.69
  Other payables                                               48,183,738.37           56,712,103.36
    Including: Interest payable
             Dividend payable
  Handling fee and commission payable
  Reinsurance accounts payable
  Liabilities held for sale
  Non-current liabilities due within one year               2,318,122,207.38        2,029,499,509.43
  Other current liabilities                                     3,072,497.33            5,133,310.10
Total current liabilities                                   7,179,298,329.95        6,477,256,979.42
Non-current liabilities:
  Insurance policy reserve
  Long-term borrowings                                      5,484,579,401.22        5,148,811,786.49
  Bonds payable
    Including: Preferred shares
               Perpetual bonds
  Lease liabilities                                             3,057,390.60            2,936,868.15
  Long-term payables
  Long-term employee benefits payable
  Provisions
  Deferred income                                           1,062,207,483.24        1,063,699,676.16
  Deferred tax liabilities                                    145,314,508.82          135,751,304.31
  Other non-current liabilities
Total non-current liabilities                               6,695,158,783.88        6,351,199,635.11
Total liabilities                                          13,874,457,113.83       12,828,456,614.53
Equity:
  Share capital                                             2,578,394,760.00        2,578,394,760.00
  Other equity instruments
    Including: Preferred shares
               Perpetual bonds
  Capital reserve                                           4,121,063,080.96        4,121,063,080.96
  Less: Treasury shares                                       432,499,287.04          320,360,784.48
  Other comprehensive income                                    -3,529,997.46           -1,614,172.31
  Special reserve                                              14,978,374.22           12,692,218.51
  Surplus reserve                                           1,289,197,380.00        1,289,197,380.00
  General risk reserve
  Undistributed profit                                     15,355,792,822.89       14,152,465,528.17
Total equity attributable to the parent company            22,923,397,133.57       21,831,838,010.85


                                                  10
Securities Code:002001                                                                                  Securities Abbr: NHU



                           Items                                     Mar 31, 2022                      Jan 1, 2022
  Non-controlling interest                                                    69,091,279.78                    63,730,851.41
Total equity                                                             22,992,488,413.35                 21,895,568,862.26
Total liabilities & equity                                               36,866,945,527.18                 34,724,025,476.79

Legal representative: Hu Baifan      Officer in charge of accounting: Shi Guanqun   Head of accounting department: Wang Xiaobi


2. Consolidated Income Statement

                                                                                                             Unit: RMB Yuan
                           Items                                       Q1 2022                          Q1 2021
I. Total operating revenue                                                 4,307,991,748.95                 3,790,255,566.08
 Including: Operating revenue                                              4,307,991,748.95                 3,790,255,566.08
       Interest income
       Premiums earned
       Revenue from handling charges and
       commission
II. Total operating cost                                                   2,975,781,501.41                 2,456,151,541.23
 Including: Operating cost                                                 2,518,094,547.27                 2,066,876,964.92
       Interest expenses
       Handling charges and commission
       expenditures
       Surrender value
       Net payment of insurance claims
       Net provision of insurance policy reserve
       Premium bonus expenditures
       Reinsurance expenses
       Taxes and surcharges                                                   29,871,875.59                    29,624,782.86
       Selling expenses                                                       22,790,060.34                    25,596,901.14
       Administrative expenses                                               108,673,875.32                    98,545,580.34
       R&D expenses                                                          227,817,615.86                   159,873,277.76
       Financial expenses                                                     68,533,527.03                    75,634,034.21
         Including: Interest expenses                                         73,602,297.89                    72,761,812.52
                   Interest income                                            23,573,114.81                     7,951,345.12
 Add: Other income                                                            34,331,441.69                    38,215,703.79
       Investment income (or less: losses)                                    34,767,170.90                     6,350,902.16
       Including: Investment income from
                                                                              22,194,461.68                     6,208,006.98
       associates and joint ventures
            Gains from derecognition of financial
            assets at amortized cost
       Gains on foreign exchange (or less: losses)
       Gains on net exposure to hedging risk (or


                                                                11
Securities Code:002001                                                             Securities Abbr: NHU



                         Items                              Q1 2022                Q1 2021
       less: losses)
       Gains on changes in fair value (or less:
                                                                 12,731,581.91            8,656,495.16
       losses)
       Credit impairment loss                                    -30,326,145.11         -27,121,854.75
       Assets impairment loss                                     -7,946,770.68           -3,098,341.11
       Gains on asset disposal (or less: losses)                   4,679,172.59           1,841,479.97
III. Operating profit (or less: losses)                        1,380,446,698.84       1,358,948,410.07
 Add: Non-operating revenue                                           819,683.44             939,174.11
 Less: Non-operating expenditures                                     911,475.48          1,240,793.29
IV. Profit before tax (or less: total loss)                    1,380,354,906.80       1,358,646,790.89
 Less: Income tax                                               172,502,286.13          210,357,643.86
V. Net profit (or less: net loss)                              1,207,852,620.67       1,148,289,147.03
(I) Categorized by the continuity of operations
  1. Net profit from continuing operations (or less:
                                                               1,207,852,620.67       1,148,289,147.03
  net loss)
  2. Net profit from discontinued operations (or
  less: net loss)
(II) Categorized by the portion of equity
ownership
 1. Net profit attributable to owners of parent
                                                               1,203,327,294.72       1,144,090,085.76
 company
 2. Net profit attributable to non-controlling
                                                                   4,525,325.95           4,199,061.27
 shareholders
VI. Other comprehensive income after tax                          -1,080,722.73           -6,097,332.37
Items attributable to the owners of the parent
                                                                  -1,915,825.15           -3,306,897.50
company
 (I) Not to be reclassified subsequently to profit
 or loss
       1. Changes in remeasurement on the net
       defined benefit plan
       2. Items under equity method that will not
       be reclassified to profit or loss
       3. Changes in fair value of other equity
       instrument investments
       4. Changes in fair value of own credit risk
       5. Others
 (II) To be reclassified subsequently to profit or
                                                                  -1,915,825.15           -3,306,897.50
 loss
       1. Items under equity method that may be
       reclassified to profit or loss
       2. Changes in fair value of other debt
       investments
       3. Profit or loss from reclassification of
       financial assets into other comprehensive
       income
       4. Provision for credit impairment of other
       debt investments

                                                       12
Securities Code:002001                                                                                       Securities Abbr: NHU



                         Items                                         Q1 2022                                Q1 2021
       5. Cash flow hedging reserve
       6. Translation reserve                                                   -1,915,825.15                          -3,306,897.50
       7. Others
Items attributable to non-controlling shareholders                                 835,102.42                          -2,790,434.87
VII. Total comprehensive income                                             1,206,771,897.94                        1,142,191,814.66
 Items attributable to the owners of the parent
                                                                            1,201,411,469.57                        1,140,783,188.26
 company
 Items attributable to non-controlling
                                                                                 5,360,428.37                          1,408,626.40
 shareholders
VIII. Earnings per share (EPS):
 (I) Basic EPS (yuan per share)                                                           0.47                                  0.44
 (II) Diluted EPS (yuan per share)                                                        0.47                                  0.44

Net profit realized by the combined party in business combination under common control before the business combination in the
current period was 0.00 yuan, and net profit realized by the combined party in the previous period was 0.00 yuan.

Legal representative: Hu Baifan     Officer in charge of accounting: Shi Guanqun       Head of accounting department: Wang Xiaobi


3. Consolidated Cash Flow Statement

                                                                                                                    Unit: RMB Yuan
                         Items                                         Q1 2022                                Q1 2021
I. Cash flows from operating activities:
 Cash receipts from sale of goods or rendering of
                                                                            3,613,716,217.09                        3,261,253,246.04
 services
 Net increase of client deposit and interbank
 deposit
 Net increase of central bank loans
 Net increase of loans from other financial
 institutions
 Cash receipts from original insurance contract
 premium
 Net cash receipts from reinsurance
 Net increase of policy-holder deposit and
 investment
 Cash receipts from interest, handling charges
 and commission
 Net increase of loans from others
 Net increase of repurchase
 Net cash receipts from agency security
 transaction
 Receipts of tax refund                                                       241,904,618.87                         139,658,300.25



                                                                 13
Securities Code:002001                                                            Securities Abbr: NHU



                         Items                              Q1 2022               Q1 2021
 Other cash receipts related to operating activities             62,483,265.40          70,599,669.60
Subtotal of cash inflows from operating activities             3,918,104,101.36      3,471,511,215.89
 Cash payments for goods purchased and services
                                                               2,509,609,260.22      1,578,841,733.53
 received
 Net increase of loans and advances to clients
 Net increase of central bank deposit and
 interbank deposit
 Cash payments for insurance indemnities of
 original insurance contracts
 Net increase of loans to others
 Cash payments for interest, handling charges and
 commission
 Cash payments for policy bonus
 Cash paid to and on behalf of employees                        633,641,755.96         479,789,155.22
 Cash payments for taxes and rates                              278,742,445.74         153,186,283.38
 Other cash payments related to operating
                                                                 73,668,959.78         175,674,542.40
 activities
Subtotal of cash outflows from operating activities            3,495,662,421.70      2,387,491,714.53
Net cash flows from operating activities                        422,441,679.66       1,084,019,501.36
II. Cash flows from investing activities:
 Cash receipts from withdrawal of investments
 Cash receipts from investment income                            16,343,604.40           9,308,194.25
 Net cash receipts from the disposal of fixed
 assets, intangible assets and other long-term                    1,561,444.66           2,206,000.00
 assets
 Net cash receipts from the disposal of
 subsidiaries & other business units
 Other cash receipts related to investing activities           1,064,294,950.48        400,000,000.00
Subtotal of cash inflows from investing activities             1,082,199,999.54        411,514,194.25
 Cash payments for the acquisition of fixed
 assets, intangible assets and other long-term                  865,447,063.96         698,613,138.91
 assets
 Cash payments for investments
 Net increase of pledged borrowings
 Net cash payments for the acquisition of
                                                                  5,380,193.64          40,000,000.00
 subsidiaries & other business units
 Other cash payments related to investing
                                                               1,379,122,507.08        471,076,400.00
 activities
Subtotal of cash outflows from investing activities            2,249,949,764.68      1,209,689,538.91
Net cash flows from investing activities                      -1,167,749,765.14       -798,175,344.66
III. Cash flows from financing activities:
 Cash receipts from absorbing investments
 Including: Cash received by subsidiaries from
 non-controlling shareholders as investments
 Cash receipts from borrowings                                 1,637,682,567.39      2,392,073,940.87


                                                       14
Securities Code:002001                                                                               Securities Abbr: NHU



                         Items                                     Q1 2022                           Q1 2021
 Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities                      1,637,682,567.39                 2,392,073,940.87
 Cash payments for the repayment of borrowings                            582,292,030.99                 1,060,973,532.91
 Cash payments for distribution of dividends or
                                                                           80,697,645.30                    71,825,784.22
 profits and for interest expenses
 Including: Cash paid by subsidiaries to
 non-controlling shareholders as dividend or
 profit
 Other cash payments related to financing
                                                                            2,468,007.00                     2,847,895.88
 activities
Subtotal of cash outflows from financing activities                       665,457,683.29                 1,135,647,213.01
Net cash flows from financing activities                                  972,224,884.10                 1,256,426,727.86
IV. Effect of foreign exchange rate changes on
                                                                          -11,350,293.57                   -26,160,428.88
cash & cash equivalents
V. Net increase in cash and cash equivalents                              215,566,505.05                 1,516,110,455.68
 Add: Opening balance of cash and cash
                                                                        5,714,537,538.23                 4,669,306,776.09
 equivalents
VI. Closing balance of cash and cash equivalents                        5,930,104,043.28                 6,185,417,231.77

Legal representative: Hu Baifan   Officer in charge of accounting: Shi Guanqun   Head of accounting department: Wang Xiaobi


II Independent Auditor’s Report
Whether the First Quarterly Report above have been audited.
□Yes √ No
The First Quarterly Report has not been audited.



                                                                  Board of Directors of Zhejiang NHU Company Ltd.
                                                                                                     April 28,2022




                                                             15

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