大华股份:2019年第一季度报告全文(英文版)

2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
ZHEJIANG DAHUA TECHNOLOGY CO., LTD.
            2019 Q1 Report
              April 2019
                                               2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
                          Section I Important Notes
    The Board of Directors, Board of Supervisors, Directors, Supervisors and
Senior Management of the Company hereby warrant that the information
presented in this quarterly report shall be authentic, accurate, complete and free
of any false records, misleading statements or material omissions, and they shall
assume joint and several liabilities for such information.
    All directors have attended the board meeting for the deliberation of this
quarterly report.
    Fu Liquan, the Company's principal, Wei Meizhong, the person in charge
of accounting, and Xu Qiaofen, the person in charge of the accounting
institutions (accounting supervisor) hereby represent and warrant that the
financial statements contained in this quarterly report are authentic, accurate
and complete.
                                                                                  2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
                                     Section II Corporate Information
I. Key Accounting Data and Financial Indicators
Whether the Company needs to adjust or restate the accounting data of previous years retrospectively
□ Yes √ No
                                                         This period              Same period of last year        Change (%)
Operating income (RMB)                                      4,347,918,104.26                3,617,652,691.40                   20.19%
Net profit attributable to shareholders of
                                                              316,343,906.02                  295,523,140.67                   7.05%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company, excluding                                 286,016,593.97                  290,656,854.31                   -1.60%
non-recurring profit and loss (RMB)
Net cash flow from operational activities                  -1,728,487,212.91               -1,286,295,160.14                 -34.38%
(RMB)
Basic earnings per share (RMB/share)                                      0.11                             0.10                10.00%
Diluted earnings per share (RMB/share)                                    0.11                             0.10                10.00%
Weighted average ROE                                                     2.47%                            2.78%                -0.31%
                                                     End of this period                End of last year           Change (%)
Total assets (RMB)                                        25,249,751,298.42               26,350,599,778.15                    -4.18%
Net assets attributable to shareholders of
                                                          12,992,582,839.54               12,618,758,918.48                    2.96%
the listed company (RMB)
Non-recurring profit and loss items and amounts
√ Applicable □ Not applicable
                                                                                                                            Unit: RMB
                                                                          Amount from the beginning
                                  Item                                    of the year to the end of this           Note
                                                                                     period
Profit and loss from disposal of non-current assets (including the
                                                                                           9,128,384.28
write-off for the accrued impairment of assets)
The government subsidies included in current profits and losses
(excluding the government subsidies closely related to regular
                                                                                         11,417,827.04
businesses of the Company and issued in quota or quantity based
on the national standards)
Profits and losses from changes at fair value of trading financial
assets, derivative financial assets, trading financial liabilities and                   16,288,059.40
derivative financial liabilities, and investment income gained
                                                                                   2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
from disposal of trading financial assets, derivative financial
assets, trading financial liabilities, derivative financial liabilities
and other investments on creditor's rights, excluding effective
hedging businesses related to the normal business operation of the
Company
Non-operating revenue and expenses other than the above                                     1,579,646.02
Less: Impact of income tax                                                                  5,432,794.47
     Impact of minority equity (after-tax)                                                  2,653,810.22
Total                                                                                      30,327,312.05                --
As to the non-recurring profit and loss items defined by the Company according to Explanatory Announcement No.1 on Information
Disclosure for Companies Offering Securities to the Public - Non-recurring Profit and Loss, or non-recurring profit and loss items
listed in the said document defined as recurring ones, the Company shall specify the reason.
□ Applicable √ Not applicable
In this reporting period, the Company did not have any non-recurring profit and loss items listed in Explanatory Announcement No.1
on Information Disclosure for Companies Offering Securities to the Public - Non-recurring Profit and Loss defined as recurring ones.
II. Total Number of Shareholders and Holdings of the Top 10 Shareholders at the End of the
Reporting Period
1. Total number of common shareholders, number of preferred shareholders with voting rights recovered
and holdings of the Top 10 shareholders
                                                                                                                                   Unit: share
                                                               Total number of preferred
Total number of common
                                                               shareholders with voting rights
shareholders at the end of the                       124,488
                                                               recovered at the end of the reporting
reporting period
                                                               period (if any)
                                                     Holdings of the Top 10 shareholders
                         Nature of          Shareholding       Number of shares       Number of                Pledged or frozen
Shareholder name
                        shareholder           percentage              held         restricted shares       Status            Amount
                     Domestic natural
Fu Liquan                                            36.10%        1,082,081,880        834,736,410        Pledged           157,192,000
                     person
                     Domestic natural
Zhu Jiangming                                          6.22%         186,461,490        139,846,117        Pledged            36,504,000
                     person
Hong Kong
                     Overseas legal
Securities                                             2.63%          78,796,029
                     person
Clearing Co., Ltd.
                     Domestic natural
Chen Ailing                                            2.38%          71,262,813           53,447,110
                     person
Wu Jun               Domestic natural                  2.31%          69,250,886           51,938,164
                                                                          2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
                    person
National Social
Security Fund       Others                     1.47%         44,039,310
Portfolio 102
                    Domestic
China Securities
                    non-state-owned            1.32%         39,611,241
Finance Co., Ltd.
                    legal person
Central Huijin
Asset               State-owned legal
                                               1.05%         31,448,750
Management Co., person
Ltd.
Zhejiang Dahua
Technology Co.,
Ltd. - Phase III    Others                     0.88%         26,247,928
Employee Stock
Ownership Plan
Shanghai
Greenwoods
Asset
                    Others                     0.66%         19,904,829
Management Ltd.
- Greenwoods
Global Fund
                                        Holdings of the Top 10 unrestricted shareholders
                                                                                                         Type of shares
            Shareholder name                     Number of unrestricted shares
                                                                                                Type of shares       Amount
                                                                                               RMB common
Fu Liquan                                                                        247,345,470                         247,345,470
                                                                                               stock
Hong Kong Securities Clearing Co.,                                                             RMB common
                                                                                  78,796,029                              78,796,029
Ltd.                                                                                           stock
                                                                                               RMB common
Zhu Jiangming                                                                     46,615,373                              46,615,373
                                                                                               stock
National Social Security Fund                                                                  RMB common
                                                                                  44,039,310                              44,039,310
Portfolio 102                                                                                  stock
                                                                                               RMB common
China Securities Finance Co., Ltd.                                                39,611,241                              39,611,241
                                                                                               stock
Central Huijin Asset Management                                                                RMB common
                                                                                  31,448,750                              31,448,750
Co., Ltd.                                                                                      stock
Zhejiang Dahua Technology Co.,
                                                                                               RMB common
Ltd. - Phase III Employee Stock                                                   26,247,928                              26,247,928
                                                                                               stock
Ownership Plan
                                                                             2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
Shanghai Greenwoods Asset
                                                                                                 RMB common
Management Ltd. - Greenwoods                                                        19,904,829                            19,904,829
                                                                                                 stock
Global Fund
Shanghai Greenwoods Asset
                                                                                                 RMB common
Management Co., Ltd. -                                                              18,821,078                            18,821,078
                                                                                                 stock
Greenwoods Value Fund
                                                                                                 RMB common
Chen Ailing                                                                         17,815,703                            17,815,703
                                                                                                 stock
Association or concerted action of     Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company is unaware of
above-mentioned shareholders           whether other shareholders have associated relationship or are persons acting in concert.
Participation of Top 10 common
shareholders in securities margin      N/A
trading businesses (if any)
Whether the Company's Top 10 common shareholders or Top 10 unrestricted common shareholders have agreed upon any repurchase
transaction in the reporting period
□ Yes √ No
None of the Company's Top 10 common shareholders or Top 10 unrestricted common shareholders have agreed upon any
repurchases transaction in the reporting period.
2. Total number of preferred shareholders and holdings of the Top 10 preferred shareholders
□ Applicable √ Not applicable
                                                                                  2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
                                        Section III Important Matters
I. Major changes in key financial data and indicators in the reporting period and reasons
√ Applicable □ Not applicable
     (I) Changes in assets and liabilities and reasons
     1. Available-for-sale financial assets decreased by 100% compared with the end of last year, which was mainly caused by the
application of the New Accounting Standards for Financial Instruments starting from 2019 and that the Company adjusted the items
previously listed as available-for-sale financial assets to other non-current financial assets;
     2. Other non-current financial assets increased by 100% compared with the end of last year, which was mainly caused by the
application of the New Accounting Standards for Financial Instruments starting from 2019 and that the Company adjusted the items
previously listed as available-for-sale financial assets to other non-current financial assets;
     3. Long-term receivables increased by 33.25% compared with the end of last year, which was mainly caused by the confirmed
increase of installments in the acceptance inspection in this reporting period;
     4. Other non-current assets increased by 87.18% compared with the end of last year, which was mainly caused by the increase of
pre-payments for the manufacturing equipment in this reporting period;
     5. Short-term borrowings increased by 57.09% compared with the end of last year, which was mainly caused by the increase of
bank loans in this reporting period;
     6. Trading financial liabilities increased by 100% compared with the end of last year, which was mainly caused by the
application of the New Accounting Standards for Financial Instruments starting from 2019 and that the Company adjusted the items
measured at fair value with their changes previously listed as financial liabilities through profit and loss of the current period to
trading financial liabilities;
     7. Financial liabilities measured at fair value through profit and loss of the current period decreased by 100% compared with the
end of last year, which was mainly caused by the application of the New Accounting Standards for Financial Instruments starting
from 2019 and that the Company adjusted the items measured at fair value with their changes previously listed as financial liabilities
through profit and loss of the current period to trading financial liabilities;
     8. Received pre-payments increased by 37.53% compared with the end of last year, which was mainly caused by the business
growth of the Company and the increase of received pre-payments;
     9. Employee compensation payable decreased by 56.75% compared with the end of last year, which was mainly caused by the
payment of year-end bonus in this reporting period;
     10. Taxes payable decreased by 43.09% compared with the end of last year, which was mainly caused by the payment of
value-added taxes and corporate income taxes which were not paid at the start of the period;
     11. Interests payable increased by 54.69% compared with the end of last year, which was mainly caused by the increase of bank
loans resulting in the increase of corresponding interest expenses;
     12. Other comprehensive incomes increased by 108.34% compared with the end of last year, which was mainly caused by the
increased difference from the conversion of foreign currency statements;
     (II) Changes in income statement items and reasons
     1. Management fee increased by 48.86% compared with the same period of last year, which was mainly caused by the business
growth of the Company and the impact of equity incentive fees in this reporting period;
     2. R&D fee increased by 47.45% compared with the same period of last year, which was mainly caused by the increased
                                                                              2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
investment in R&D by the Company;
     3. Loss from impairment of assets increased by 67.73% compared with the same period of last year, which was mainly caused
by the increase of the accrued bad debt provision in this reporting period compared with the same period of last year;
     4. Other income increased by 50.18% compared with the same period of last year, which was mainly caused by the increase of
returned part of the value-added taxes due to excess burden compared with the same period of last year;
     5. Profit and loss resulting from the changes in fair value increased by 1179.13% compared with the same period of last year,
which was mainly caused by the changes in the fair value of the Company's financial derivatives;
     6. Non-operating income increased by 214.71% compared with the same period of last year, which was mainly caused by the
increase of received government subsidies in this reporting period compared with the same period of last year;
     7. Non-operating expense decreased by 58.50% compared with the same period of last year, which was mainly caused by the
decrease of the losses resulting from disposal of fixed assets in this reporting period compared with the same period of last year;
     8. Income tax expense decreased by 57.75% compared with the same period of last year, which was mainly caused by the
increase in the weighted deduction ratio of R&D fees compared with the same period of last year;
     (III) Changes in cash flow statement items and reasons
     1. Net cash flow from operational activities decreased by 34.38% compared with the same period of last year, which was mainly
caused by the scale expansion of the Company resulting in the increase of cash payment for businesses;
     2. Net cash flow from investment activities increased by 45.38% compared with the same period of last year, which was mainly
caused by the acquisition activities in the same period of last year;
     3. Net cash flow from financing activities increased by 254.44% compared with the same period of last year, which was mainly
caused by the increase of bank loans in this reporting period;
II. Progress and Impact of Important Matters and Solutions
√ Applicable □ Not applicable
       1. On January 24, 2017, the Company's holding sub-subsidiary, Nanbei United Information Technology Co., Ltd. and its
wholly-owned subsidiary, Zhejiang Dahua System Engineering Co., Ltd. signed a Cooperation Agreement on PPP Investment in Safe
City Project of Shache County with the People's Government of Shache County in Kashgar, Xinjiang, which was just a framework
agreement on the PPP project. The agreement stipulated that the service content was the pre-feasibility study of the project and the
design of the project, etc. For the implementation of the specific project, related decision-making and approval procedures, such as
government procurement, shall still be fulfilled.
      On July 21, 2017, the Company received the Notification of Award issued by the project purchasing unit, which confirmed that
the wholly-owned subsidiary Zhejiang Dahua System Engineering Co., Ltd. (the consortium leader), with the holding sub-subsidiary
Nanbei United Information Technology Co., Ltd. (member of the consortium) was the winning bidder for the Safe City Construction
Project (PPP) in Shache County. The winning bid amount of the project was RMB 4.31479 billion (the final amount shall be subject
to the signed contract), which was the total amount for construction and operation within a 10-year project cooperation period.
      On August 4, 2017, the Company's 34th session of the 5th Board of Directors' meeting reviewed and approved the Proposal on
Investing to Establish A PPP Project Company in Shache County, Xinjiang, and the Company submitted a bid based on the
requirements for the Shache County City Construction Project (PPP), and the winning consortium jointly funded the establishment of
the project company, with a registered capital of RMB 335,567,200. Among them, Zhejiang Dahua System Engineering Co., Ltd.
contributed RMB 234,897,040, accounted for 70% of the total contribution; Nanbei United Information Technology Co., Ltd.
contributed RMB 100,670,160, accounted for 30%. In August 2017, the project company was established and the name of the
company approved by the industrial and commercial bureau was Xinjiang Dahua Xinzhi Information Technology Co., Ltd.
                                                                              2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
      On April 18, 2018, the winning bidder received the notice from the Public Security Bureau of Shache County to stop the
implementation of the Safe City Construction Project of Shache County (PPP). Nearly half of the project was completed, and no
subsequent expenses for equipment replacement, operation and maintenance were incurred. The actual investment amount during the
construction period shall be further calculated and confirmed with the government.
     The winning bidder's project participation and construction was in compliance with the requirements of relevant laws and
regulations of PPP, but there exists the risk that the project would not be continued and lead to the decrease of the Company's future
recognizable income. The Company would actively cooperate with relevant government departments in their work, and timely
perform the obligation of information disclosure based on subsequent progression of the project and the provisions in relevant laws
and regulations and the Articles of Association.
      2. On May 16, 2017, the Company's 2016 Annual General Meeting of Shareholders reviewed and approved the Zhejiang
Dahua Technology Co., Ltd. Phase III Employee Stock Ownership Plan (Draft) and its summary, and decided to implement the Phase
III Employee Stock Ownership Plan. On June 1, 2017, the Company's Phase III Employee Stock Ownership Plan completed the
stock purchase through DAHUA No. 3 Directed Asset Management Plan of Caitong Securities Asset Management, with an average
purchase price of RMB 16.83 per share and a total purchase volume of 47,000,000 shares.
      On November 12, 2018, the Company's 18th session of the 6th Board of Directors' meeting reviewed and approved the
\"Suggestive Proposal on Extension of the Company's Phase III Employee Stock Ownership Plan's Duration at the Time of
Expiration\". The Board of Directors agreed to extend the Company's Phase III Employee Stock Ownership Plan for one year based
on the voting results of the shareholders' meeting. That is, the duration was extended for one additional year on the basis of the
original termination date, until May 15, 2020.
      3. On December 27, 2018, the Company's 5th interim shareholders' meeting in 2018 reviewed and approved the \"Proposal on
Repurchase and Cancellation of Some Granted but Unlocked Restricted Shares\", and agreed to repurchase and cancel 44,200 granted
but unlocked restricted shares held by the incentive targets who have left the Company and one deceased personnel. The repurchase
price was RMB 8.17 per share, same as the granting price of the restricted shares, and the registered capital was reduced accordingly.
The above repurchase and cancellation matters were completed on March 4, 2019, and the modification procedures at the Bureau of
Industry and Commerce were completed on April 15, 2019.
                       Important matters                             Date of disclosure       Interim report disclosure search website
Announcement on the Signing of A Framework Agreement                                         Juchao Information Website
                                                                     January 26, 2017
for A PPP Project by A Subsidiary                                                            http://www.cninfo.com.cn/
Suggestive Announcement on the Pre-winning Publicity for                                     Juchao Information Website
                                                                       July 18, 2017
the PPP Project of the Subsidiary                                                            http://www.cninfo.com.cn/
Announcement on Investing in and Establishing A PPP                                          Juchao Information Website
                                                                      August 7, 2017
Project Company in Shache County, Xinjiang                                                   http://www.cninfo.com.cn/
Announcement on the Progress of the Subsidiary's PPP                                         Juchao Information Website
                                                                       April 18, 2018
Project                                                                                      http://www.cninfo.com.cn/
Announcement on the Resolution of the Annual Shareholders'                                   Juchao Information Website
                                                                       May 17, 2017
Meeting in 2016                                                                              http://www.cninfo.com.cn/
Announcement on the Completion of Purchase for the Phase                                     Juchao Information Website
                                                                        June 2, 2017
III Employee Stock Ownership Plan                                                            http://www.cninfo.com.cn/
Suggestive Proposal on Extension of the Company's Phase III
                                                                                             Juchao Information Website
Employee Stock Ownership Plan's Duration at the Time of             November 13, 2018
                                                                                             http://www.cninfo.com.cn/
Expiration
                                                                                   2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
Announcement on the Resolution of the 5th Interim                                                Juchao Information Website
                                                                         December 28, 2018
Shareholders' Meeting in 2018                                                                    http://www.cninfo.com.cn/
Announcement on the Completion of Repurchase and                                                 Juchao Information Website
                                                                            March 6, 2019
Cancellation of Some Restricted Shares                                                           http://www.cninfo.com.cn/
The Progress on Share Repurchase
□ Applicable √ Not applicable
The Progress on Reducing Share Repurchase by Means of Centralized Bidding
□ Applicable √ Not applicable
III. Commitments of the Company's de facto Controllers, Shareholders, Related Parties,
Buyers, the Company and Other Parties related to the Commitments not Fulfilled in the
Reporting Period
□ Applicable √ Not applicable
All of the commitments of the Company's de facto controllers, shareholders, related parties, buyers, the Company and other parties
related to the commitments have been fulfilled in the reporting period.
IV. Estimation on Business Performance from January to June of 2019
Estimated business performance from January to June of 2019: the net profit attributable to shareholders of the listed company is a
positive value and it's not a turn from loss to profit.
Changes in the net profit attributable to shareholders of the listed
                                                                                                     0.00%       to                15.00%
company from January to June of 2019
Range of changes in the net profit attributable to shareholders of the
                                                                                                108,191.69       to             124,420.44
listed company from January to June of 2019 (in RMB 10,000)
Net profit attributable to shareholders of the listed company from
                                                                                                                                108,191.69
January to June of 2018 (in RMB 10,000)
                                                                           The sales scale of the Company has expanded and the
                                                                           operating income has increased. It's estimated that the net
Reasons for the performance changes                                        profit attributable to the owners of the parent company will
                                                                           increase by 0%-15% compared with the same period of last
                                                                           year.
V. Financial Assets Measured at Fair Value
√ Applicable □ Not applicable
                                                                                                                                 Unit: RMB
                                    Profit and loss Cumulative Amount of Amount of
                        Initial                                                                Cumulative       Amount at the
                                    resulting from changes in          purchase    sales in                                       Capital
 Type of assets      investment                                                                 investment        end of the
                                    the changes in        fair value    in the       the                                           source
                         cost                                                                     income              period
                                     fair value in    recognized       reporting   reporting
                                                                                  2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
                                      this period    in equity         period      period
Financial                                                                                                                          Own
                                   34,436,817.76                                               -19,529,927.20         387,573.16
derivatives                                                                                                                        fund
Equity                                                                                                                             Own
                   82,970,227.00                                                                                   82,970,227.00
investment                                                                                                                         fund
Total              82,970,227.00 34,436,817.76                0.00         0.00         0.00   -19,529,927.20      83,357,800.16       --
VI. Rule-violating External Guarantee
□ Applicable √ Not applicable
No rule-violating external guarantee was provided by the Company in the reporting period.
VII. Occupation of the Listed Company's Fund by the Controlling Shareholders or Other
Related Parties for Non-operating Purposes
□ Applicable √ Not applicable
During the reporting period, there is no occupation of the listed company's fund by the controlling shareholders or other related
parties for non-operating purposes.
VIII. Registration Form for Received Researches, Communications, Interviews in the
Reporting Period
√ Applicable □ Not applicable
         Time                Method             Target type                            Basic information search website
                                                                     For more information, please see the investor relations activity list at
January 29, 2019          Field research       Organization
                                                                     http://www.cninfo.com.cn
                            Telephone                                For more information, please see the investor relations activity list at
January 29, 2019                               Organization
                         communication                               http://www.cninfo.com.cn
                                                                     For more information, please see the investor relations activity list at
January 30, 2019          Field research       Organization
                                                                     http://www.cninfo.com.cn
                            Telephone                                For more information, please see the investor relations activity list at
January 30, 2019                               Organization
                         communication                               http://www.cninfo.com.cn
                                                                     2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
                                        Section IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co., Ltd.
                                                                                                               Unit: RMB
                      Item                         March 31, 2019                          December 31, 2018
Current assets:
     Monetary fund                                           3,388,154,787.00                           4,160,153,847.06
     Deposit reservation for balance
     Loans to banks and other financial
institutions
     Trading financial assets                                        387,573.16
     Financial assets measured at fair
value with changes recognized into current
profit and loss
     Derivative financial assets
     Notes receivable and accounts
                                                            11,636,044,122.03                          12,577,066,194.44
receivable
         Including: notes receivable                         1,734,839,459.26                           2,385,693,417.06
                  Accounts receivable                        9,901,204,662.77                          10,191,372,777.38
     Pre-payments                                              161,293,518.30                             126,891,259.00
     Premium receivable
     Reinsurance accounts receivable
     Reinsurance contract reserves
receivable
     Other receivables                                         338,563,516.18                             398,170,769.40
         Including: interests receivable                            5,807,523.44                            6,754,941.00
                  Dividends receivable
     Buying back the sale of financial
assets
     Inventory                                               2,996,728,364.05                           3,035,579,709.14
     Contractual assets
                                                    2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Held-for-sale assets
     Non-current assets due within 1 year       574,701,552.44                           578,733,057.27
     Other current assets                       405,106,796.33                           402,255,078.05
Subtotal of current assets                    19,500,980,229.49                       21,278,849,914.36
Non-current assets:
     Granting of loans and advances
     Investments on creditor's rights
     Financial assets available for sale                                                  82,970,227.00
     Other investments on creditor's rights
     Held-to-maturity investments
     Long-term receivables                     2,480,468,764.43                        1,861,485,568.28
     Long-term equity investment                181,978,072.22                           185,872,021.58
     Other equity instrument investments
     Other non-current financial assets          82,970,227.00
     Investment properties                      347,900,181.69                           346,831,376.55
     Fixed assets                              1,401,032,946.90                        1,407,471,330.83
     Projects under construction                231,711,748.22                           226,191,587.11
     Productive biological assets
     Oil and gas assets
     Right-of-use assets
     Intangible assets                          368,037,008.04                           372,467,409.09
     Development expense
     Goodwill                                   109,745,412.21                           109,745,412.21
     Long-term prepaid expenses                  39,031,771.45                            37,117,918.55
     Deferred income tax assets                 475,426,712.53                           425,319,406.98
     Other non-current assets                    30,468,224.24                            16,277,605.61
Subtotal of non-current assets                 5,748,771,068.93                        5,071,749,863.79
Total assets                                  25,249,751,298.42                       26,350,599,778.15
Current liabilities:
     Short-term loan                           2,908,880,172.39                        1,851,709,561.83
     Borrowings from the Central Bank
     Borrowings from banks and other
financial institutions
     Trading financial liabilities                 4,314,915.55
                                                      2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
       Financial liabilities measured at fair
value with changes recognized into current                                                  38,602,602.30
profit and loss
       Derivative financial liabilities
       Notes payable and accounts payable        5,647,489,443.82                        7,461,315,698.99
       Received pre-payments                      472,153,342.43                           343,297,891.20
       Financial assets sold for repurchase
       Deposit taking and interbank deposit
       Receiving from vicariously traded
securities
       Receiving from vicariously sold
securities
       Payroll payable                            486,255,924.62                         1,124,358,611.94
       Tax payable                                341,186,897.43                           599,478,049.81
       Other payables                            1,013,706,211.94                        1,051,537,094.97
         Including: interests payable                7,340,553.07                            4,745,203.31
                  Dividends payable
       Service charge and commission
payable
       Reinsurance accounts payable
       Contractual liabilities
       Held-for-sale liabilities
       Non-current liabilities due within 1
                                                   25,500,000.00                            25,500,000.00
year
       Other current liabilities                   78,959,310.21                            70,845,639.51
Subtotal of current liabilities                 10,978,446,218.39                       12,566,645,150.55
Non-current liabilities:
       Insurance contract reserves
       Long-term loan                             179,000,000.00                           179,000,000.00
       Bonds payable
         Including: preferred stocks
                  Perpetual bonds
       Lease liabilities
       Long-term payables
       Long-term payroll payable
       Expected liabilities                       243,421,368.96                           193,761,170.12
                                                                          2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Deferred income                                                   57,900,377.53                            58,693,533.40
     Deferred income tax liabilities                                   49,635,458.14                            50,137,969.76
     Other non-current liabilities                                    456,775,480.73                           399,096,280.89
Subtotal of non-current liabilities                                   986,732,685.36                           880,688,954.17
Total liabilities                                                  11,965,178,903.75                        13,447,334,104.72
Shareholders' equity:
     Share capital                                                  2,997,577,730.00                         2,997,621,930.00
     Other equity instruments
    Including: preferred stocks
                  Perpetual bonds
     Capital reserves                                               1,547,144,808.22                         1,501,180,862.83
     Less: treasury share                                             807,372,472.00                           807,733,586.00
     Other comprehensive incomes                                       21,536,320.06                            10,337,164.41
     Special reserves
     Surplus reserves                                               1,246,369,430.91                         1,246,369,430.91
     General risk reserves
     Undistributed profits                                          7,987,327,022.35                         7,670,983,116.33
Total shareholders' equity attributable to
                                                                   12,992,582,839.54                        12,618,758,918.48
the parent company
     Minority shareholders' equity                                    291,989,555.13                           284,506,754.95
Total shareholders' equity                                         13,284,572,394.67                        12,903,265,673.43
Total liabilities and shareholders' equity                         25,249,751,298.42                        26,350,599,778.15
Legal representative: Fu Liquan          Person in charge of accounting: Wei Meizhong       Person in charge of the accounting
institution: Xu Qiaofen
2. Balance Sheet of the Parent Company
                                                                                                                    Unit: RMB
                      Item                               March 31, 2019                         December 31, 2018
Current assets:
     Monetary fund                                                    152,724,456.67                           611,190,236.01
     Trading financial assets
     Financial assets measured at fair
value with changes recognized into current
profit and loss
                                                    2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Derivative financial assets
     Notes receivable and accounts
                                               4,944,891,210.90                        5,551,148,625.96
receivable
       Including: notes receivable             1,070,445,568.17                          952,572,702.92
                 Accounts receivable           3,874,445,642.73                        4,598,575,923.04
     Pre-payments                                26,904,344.76                            26,772,044.53
     Other receivables                         7,503,145,920.62                        6,954,655,863.03
       Including: interests receivable                                                        42,500.00
                 Dividends receivable
     Inventory                                  172,681,553.68                           120,181,267.85
     Contractual assets
     Held-for-sale assets
     Non-current assets due within 1 year        52,015,403.28                            50,793,137.80
     Other current assets                          5,768,760.74                           24,858,982.78
Subtotal of current assets                    12,858,131,650.65                       13,339,600,157.96
Non-current assets:
     Investments on creditor's rights
     Financial assets available for sale                                                  80,496,000.00
     Other investments on creditor's rights
     Held-to-maturity investments
     Long-term receivables                      164,850,489.71                           160,299,143.83
     Long-term equity investment               3,085,368,105.84                        3,001,639,428.55
     Other equity instrument investments
     Other non-current financial assets          80,496,000.00
     Investment properties                      180,963,770.22                           183,321,198.72
     Fixed assets                               479,817,819.21                           496,363,638.38
     Projects under construction                152,575,924.51                           151,072,585.67
     Productive biological assets
     Oil and gas assets
     Right-of-use assets
     Intangible assets                          170,256,158.63                           170,879,747.04
     Development expense
     Goodwill
     Long-term prepaid expenses                  30,436,564.49                            28,927,258.54
                                                      2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
       Deferred income tax assets                   61,990,058.11                           40,821,902.57
       Other non-current assets                       129,584.70                               929,380.00
Subtotal of non-current assets                   4,406,884,475.42                        4,314,750,283.30
Total assets                                    17,265,016,126.07                       17,654,350,441.26
Current liabilities:
       Short-term loan                           2,046,841,815.43                        1,380,000,000.00
       Trading financial liabilities
       Financial liabilities measured at fair
value with changes recognized into current
profit and loss
       Derivative financial liabilities
       Notes payable and accounts payable         331,422,612.56                         1,065,528,900.01
       Received pre-payments                       63,522,498.49                            80,361,211.04
       Contractual liabilities
       Payroll payable                            318,529,714.36                           817,723,936.19
       Tax payable                                188,386,974.21                           351,294,836.50
       Other payables                            1,038,112,767.76                        1,060,909,330.56
         Including: interests payable                3,670,702.11                            2,416,340.30
                  Dividends payable
       Held-for-sale liabilities
       Non-current liabilities due within 1
year
       Other current liabilities                     6,809,092.48                            6,464,333.12
Subtotal of current liabilities                  3,993,625,475.29                        4,762,282,547.42
Non-current liabilities:
       Long-term loan
       Bonds payable
         Including: preferred stocks
                  Perpetual bonds
       Lease liabilities
       Long-term payables
       Long-term payroll payable
       Expected liabilities                          1,387,820.00                            3,396,100.00
       Deferred income
       Deferred income tax liabilities
                                                                         2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Other non-current liabilities                                    23,568,083.39                              23,684,423.74
Subtotal of non-current liabilities                                   24,955,903.39                              27,080,523.74
Total liabilities                                                  4,018,581,378.68                           4,789,363,071.16
Shareholders' equity:
     Share capital                                                 2,997,577,730.00                           2,997,621,930.00
     Other equity instruments
         Including: preferred stocks
                Perpetual bonds
     Capital reserves                                              1,541,000,010.41                           1,497,801,068.88
     Less: treasury share                                            807,372,472.00                             807,733,586.00
     Other comprehensive incomes
     Special reserves
     Surplus reserves                                              1,246,369,430.91                           1,246,369,430.91
     Undistributed profits                                         8,268,860,048.07                           7,930,928,526.31
Total shareholders' equity                                        13,246,434,747.39                          12,864,987,370.10
Total liabilities and shareholders' equity                        17,265,016,126.07                          17,654,350,441.26
3. Consolidated Income Statement
                                                                                                                     Unit: RMB
                        Item                       This period's amount of occurrence    Previous period's amount of occurrence
I. Total operating income                                             4,347,918,104.26                        3,617,652,691.40
     Including: operating income                                      4,347,918,104.26                        3,617,652,691.40
              Interest income
              Earned premiums
              Service charge and commission
income
II. Total operating cost                                              4,251,849,773.85                        3,408,142,945.83
     Including: operating cost                                        2,719,715,306.27                        2,207,716,754.78
              Interest expenses
              Service charge and commission
expenses
              Surrender value
              Net claims paid
              Net amount withdrawn for insurance
contract reserves
                                                     2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
             Policyholder dividend expense
             Reinsurance cost
             Taxes and surcharges                     23,874,799.92                        20,096,268.10
             Sales cost                              655,869,241.60                       565,570,425.04
             Administration cost                     148,771,651.74                        99,939,115.39
             R&D cost                                541,327,378.49                       367,136,026.47
             Financial cost                          117,284,844.28                       120,852,117.44
                Including: interest cost              35,426,066.33                        18,433,356.21
                          Interest income             39,467,635.58                        26,376,191.13
             Loss from impairment of assets           45,006,551.55                        26,832,238.61
             Loss from impairment of credit
     Add: other incomes                              193,253,518.07                       128,684,631.99
          Investment income (Mark \"-\" for loss)       -9,778,727.73                       -10,440,741.57
          Including: investment gains from
                                                        -782,168.13                       -11,061,652.58
affiliates and joint ventures
          Exchange gains (Mark \"-\" for loss)
          Net hedging gains from exposures
(Mark \"-\" for loss)
          Gains from changes in fair value
                                                      34,436,817.76                         2,692,200.00
(Mark \"-\" for loss)
          Asset disposal gains (Mark \"-\" for loss)                                            -13,523.79
III. Operating profit (Mark \"-\" for loss)            313,979,938.51                       330,432,312.20
     Add: non-operating income                         6,715,442.18                         2,133,831.13
     Less: non-operating expense                        512,570.47                          1,235,146.38
IV. Total profit (Mark \"-\" for total loss)           320,182,810.22                       331,330,996.95
     Less: income tax cost                            14,762,513.41                        34,942,391.53
V. Net profit (Mark \"-\" for net loss)                305,420,296.81                       296,388,605.42
  (I) Classified by operation continuity
     1. Net profit from continuing operation
                                                     305,420,296.81                       296,388,605.42
(Mark \"-\" for net loss)
     2. Net profit from discontinued operation
(Mark \"-\" for net loss)
  (II) Classified by ownership
     1. Net profit attributable to the owners of
                                                     316,343,906.02                       295,523,140.67
the parent company
     2. Minority shareholders' profit and loss       -10,923,609.21                           865,464.75
                                                      2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
VI. Net amount of other comprehensive incomes
                                                      11,199,155.65                          5,546,042.67
after taxes
  Net amount of other comprehensive incomes
after taxes attributable to the owners of the         11,199,155.65                          5,546,042.67
parent company
     (I) Other comprehensive incomes that
cannot be reclassified as profit and loss
              1. Changes resulting from
re-measurement of the defined benefit plan
              2. Other comprehensive incomes
that cannot be transferred to profit and loss under
the equity method
              3. Changes in fair value of other
equity instrument investments
              4. Changes in fair value of
enterprise's own credit risk
              5. Others
     (II) Other comprehensive incomes that will
                                                      11,199,155.65                          5,546,042.67
be reclassified as profit and loss
              1. Other comprehensive incomes
that can be transferred to profit and loss under
the equity method
              2. Changes in fair value of other
investments on creditor's rights
              3. Profits and losses from changes in
fair value of available-for-sale financial assets
              4. Amount of financial assets
reclassified as other comprehensive incomes
              5. Profits and losses from
held-to-maturity investments reclassified as
available-for-sale financial assets
              6. Other provisions for the
impairment of credit in investments on creditor's
rights
              7. Hedging reserves for cash flow
              8. Difference from the conversion of
                                                      11,199,155.65                          5,546,042.67
foreign currency statements
              9. Others
  Net amount of other comprehensive incomes
                                                                              2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
after taxes attributable to minority shareholders
VII. Total comprehensive income                                               316,619,452.46                            301,934,648.09
     Total comprehensive income attributable to
                                                                              327,543,061.67                            301,069,183.34
the owners of the parent company
     Total comprehensive income attributable to
                                                                              -10,923,609.21                                865,464.75
minority shareholders
VIII. Earnings per share:
     (I) Basic earnings per share                                                          0.11                                    0.10
     (II) Diluted earnings per share                                                       0.11                                    0.10
For statement consolidation for the enterprises under the same control in this period, the net profit realized by the consolidated party
before the consolidation is: RMB. The net profit realized by the consolidated party in previous period is: RMB.
Legal representative: Fu Liquan             Person in charge of accounting: Wei Meizhong           Person in charge of the accounting
institution: Xu Qiaofen
4. Income Statement of the Parent Company
                                                                                                                              Unit: RMB
                    Item                          This period's amount of occurrence          Previous period's amount of occurrence
I. Operating income                                                    1,160,709,728.28                               1,458,256,770.27
     Less: operating cost                                                111,231,656.05                                 415,219,943.24
            Taxes and surcharges                                          13,406,573.12                                  15,120,966.67
            Sales cost                                                   327,870,861.50                                 309,704,200.14
            Administration cost                                           81,251,635.80                                  44,795,649.77
            R&D cost                                                     456,283,172.66                                 318,585,135.77
            Financial cost                                                15,403,187.19                                 -17,699,076.75
                 Including: interest cost                                 25,906,898.88                                   6,101,362.80
                         Interest income                                  10,767,232.85                                  23,796,931.31
            Loss from impairment of
                                                                           -5,848,611.97                                  2,264,906.05
assets
            Loss from impairment of
credit
     Add: other incomes                                                  182,806,535.54                                 121,175,350.16
            Investment income (Mark \"-\"
                                                                            1,320,536.95                                -10,475,553.89
for loss)
            Including: investment gains
                                                                              -60,631.89                                -11,061,652.58
from affiliates and joint ventures
            Net hedging gains from
                                                  2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
exposures (Mark \"-\" for loss)
            Gains from changes in fair
value (Mark \"-\" for loss)
            Asset disposal gains (Mark
                                                                                           -13,523.79
\"-\" for loss)
II. Operating profit (Mark \"-\" for loss)      345,238,326.42                           480,951,317.86
       Add: non-operating income                1,881,023.83                             1,866,412.07
       Less: non-operating expense               282,834.14                                 70,622.62
III. Total profit (Mark \"-\" for total loss)   346,836,516.11                           482,747,107.31
       Less: income tax cost                    8,904,994.35                            55,047,331.08
IV. Net profit (Mark \"-\" for net loss)        337,931,521.76                           427,699,776.23
       (I) Net profit from continuing
                                              337,931,521.76                           427,699,776.23
operation (Mark \"-\" for net loss)
       (II) Net profit from discontinued
operation (Mark \"-\" for net loss)
V. Net amount of other comprehensive
incomes after taxes
       (I) Other comprehensive incomes
that cannot be reclassified as profit and
loss
                1. Changes resulting from
re-measurement of the defined benefit
plan
                2. Other comprehensive
incomes that cannot be transferred to
profit and loss under the equity method
                3. Changes in fair value of
other equity instrument investments
                4. Changes in fair value of
enterprise's own credit risk
                5. Others
       (II) Other comprehensive incomes
that will be reclassified as profit and
loss
                1. Other comprehensive
incomes that can be transferred to profit
and loss under the equity method
                2. Changes in fair value of
                                                                         2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
other investments on creditor's rights
              3. Profits and losses from
changes in fair value of
available-for-sale financial assets
              4. Amount of financial
assets reclassified as other
comprehensive incomes
              5. Profits and losses from
held-to-maturity investments
reclassified as available-for-sale
financial assets
              6. Other provisions for the
impairment of credit in investments on
creditor's rights
              7. Hedging reserves for
cash flow
              8. Difference from the
conversion of foreign currency
statements
              9. Others
VI. Total comprehensive income                                      337,931,521.76                                427,699,776.23
VII. Earnings per share:
     (I) Basic earnings per share                                                0.12                                        0.15
     (II) Diluted earnings per share                                             0.12                                        0.15
5. Consolidated Cash Flow Statement
                                                                                                                       Unit: RMB
                    Item                    This period's amount of occurrence          Previous period's amount of occurrence
I. Cash flow from operational
activities:
     Cash from sales of merchandise
                                                                 5,084,524,142.75                               4,211,360,373.46
and provision of services
     Net increase in customer's bank
deposit and interbank deposit
     Net increase in borrowings from
the Central Bank
     Net increase in borrowings from
other financial institutions
                                                 2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Cash from receiving premiums for
the original insurance contract
     Net amount from reinsurance
business
     Net increase in deposits and
investments from policyholders
     Net increase in financial assets
measured at fair value with changes
recognized into current profit and loss
     Cash from interests, service
charges and commissions
     Net increase in borrowings from
banks and other financial institutions
     Net increase in repurchase
business fund
     Net cash from receiving from
vicariously traded securities
     Tax refund                            458,798,417.38                             415,701,884.80
     Other received cashes related to
                                            38,953,212.45                              40,712,592.60
operational activities
Subtotal of cash inflow from              5,582,275,772.58
                                                                                    4,667,774,850.86
operational activities
     Cash paid for merchandise and        4,827,278,072.02
                                                                                    3,781,495,185.28
services
     Net increase in loans and
advances to customers
     Net increase in deposits with the
Central Bank and other financial
institutions
     Cash paid for original insurance
contract claims
     Net increase in financial assets
held for trading purpose
     Net increase in loans to banks and
other financial institutions
     Cash paid for interests, service
charges and commissions
     Cash paid for policy dividends
                                                   2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Cash paid to and for employees        1,591,249,215.21                           1,247,603,790.17
     Cash paid for taxes and surcharges      517,455,490.85                             392,555,916.83
     Other cashes paid for operational
                                             374,780,207.41                             532,415,118.72
activities
Subtotal of cash outflow from              7,310,762,985.49
                                                                                      5,954,070,011.00
operational activities
Net cash flow from operational             -1,728,487,212.91
                                                                                     -1,286,295,160.14
activities
II. Cash flow from investment
activities:
     Cash from disposal of investments                                                  106,300,000.00
     Cash from investment gains                   21,168.84                                 620,911.02
     Net cash from disposal of fixed
assets, intangible assets and other            3,514,007.57                                 164,288.72
long-term assets
     Net cash from disposal of
subsidiaries and other business units
     Other received cashes related to
                                               2,853,407.03
investment activities
Subtotal of cash inflow from
                                               6,388,583.44                             107,085,199.74
investment activities
     Cash paid for purchase and
construction of fixed assets, intangible     134,928,482.99                             101,042,468.25
assets and other long-term assets
     Cash paid for investments                12,200,000.00                             126,300,000.00
     Net increase in pledge loans
     Net cash paid for acquisition of
                                                                                         93,019,565.77
subsidiaries and other business units
     Other cashes paid for investment
                                              19,920,975.30                              80,892,025.18
activities
Subtotal of cash outflow from
                                             167,049,458.29                             401,254,059.20
investment activities
Net cash flow from investment
                                            -160,660,874.85                            -294,168,859.46
activities
III. Cash flow from financing
activities:
     Cash from absorbing investments          15,949,250.00                               4,400,000.00
     Including: cash from subsidiaries        15,949,250.00                               4,400,000.00
                                                                       2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
absorbing investments by minority
shareholders
     Cash from borrowings                                      2,694,932,981.06                           1,723,234,241.10
     Cash from bond issue
     Other received cashes related to
                                                                 705,446,141.85                             223,726,180.00
financing activities
Subtotal of cash inflow from financing
                                                               3,416,328,372.91                           1,951,360,421.10
activities
     Cash paid for debts repayment                             1,536,335,296.99                           1,073,430,976.54
     Cash paid for distribution of
dividends and profits or payment of                               25,649,072.19                              16,748,941.37
interests
     Including: dividends and profits
paid to minority shareholders by
subsidiaries
     Other cashes paid for financing
                                                                 741,523,904.02                             547,214,999.99
activities
Subtotal of cash outflow from
                                                               2,303,508,273.20                           1,637,394,917.90
financing activities
Net cash flow from financing activities                        1,112,820,099.71                             313,965,503.20
IV. Impact of fluctuation in exchange
                                                                 -38,821,971.01                             -10,211,961.36
rates on cash and cash equivalents
V. Net increase in cash and cash
                                                                -815,149,959.06                          -1,276,710,477.76
equivalents
     Add: cash and cash equivalents at
                                                               3,702,283,803.54                           3,062,678,993.88
the start of the period
VI. Cash and cash equivalents at the
                                                               2,887,133,844.48                           1,785,968,516.12
end of the period
6. Cash Flow Statement of the Parent Company
                                                                                                                 Unit: RMB
                    Item                  This period's amount of occurrence      Previous period's amount of occurrence
I. Cash flow from operational
activities:
     Cash from sales of merchandise
                                                               1,237,857,022.90                           2,898,163,592.45
and provision of services
     Tax refund                                                  178,394,009.37                             119,875,350.16
                                                  2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Other received cashes related to
                                             11,635,775.73                               4,401,729.41
operational activities
Subtotal of cash inflow from
                                           1,427,886,808.00                          3,022,440,672.02
operational activities
     Cash paid for merchandise and
                                            238,102,377.98                             475,265,943.57
services
     Cash paid to and for employees        1,085,112,295.39                            850,389,026.13
     Cash paid for taxes and surcharges     296,316,540.83                             248,509,633.49
     Other cashes paid for operational
                                            224,380,235.96                             256,284,196.59
activities
Subtotal of cash outflow from
                                           1,843,911,450.16                          1,830,448,799.78
operational activities
Net cash flow from operational
                                           -416,024,642.16                           1,191,991,872.24
activities
II. Cash flow from investment
activities:
     Cash from disposal of investments                                                 100,300,000.00
     Cash from investment gains                  21,168.84                                 586,098.69
     Net cash from disposal of fixed
assets, intangible assets and other          11,510,391.55                               1,774,332.18
long-term assets
     Net cash from disposal of
subsidiaries and other business units
     Other received cashes related to
                                               8,041,013.16
investment activities
Subtotal of cash inflow from
                                             19,572,573.55                             102,660,430.87
investment activities
     Cash paid for purchase and
construction of fixed assets, intangible     57,245,412.46                              15,115,419.84
assets and other long-term assets
     Cash paid for investments               89,195,750.00                             314,992,000.00
     Net cash paid for acquisition of
subsidiaries and other business units
     Other cashes paid for investment
activities
Subtotal of cash outflow from
                                            146,441,162.46                             330,107,419.84
investment activities
Net cash flow from investment              -126,868,588.91                            -227,446,988.97
                                                                   2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
activities
III. Cash flow from financing
activities:
     Cash from absorbing investments
     Cash from borrowings                                   1,213,811,815.43                            400,000,000.00
     Cash from bond issue
     Other received cashes related to
                                                             360,369,553.55                              99,088,354.50
financing activities
Subtotal of cash inflow from financing
                                                            1,574,181,368.98                            499,088,354.50
activities
     Cash paid for debts repayment                           546,970,000.00                             200,000,000.00
     Cash paid for distribution of
dividends and profits or payment of                           16,701,289.76                               5,127,142.86
interests
     Other cashes paid for financing
                                                             928,248,678.61                           1,691,125,187.17
activities
Subtotal of cash outflow from
                                                            1,491,919,968.37                          1,896,252,330.03
financing activities
Net cash flow from financing activities                       82,261,400.61                          -1,397,163,975.53
IV. Impact of fluctuation in exchange
                                                                -155,662.94                                -315,485.45
rates on cash and cash equivalents
V. Net increase in cash and cash
                                                            -460,787,493.40                            -432,934,577.71
equivalents
     Add: cash and cash equivalents at
                                                             603,430,209.42                             524,670,812.68
the start of the period
VI. Cash and cash equivalents at the
                                                             142,642,716.02                              91,736,234.97
end of the period
II. Adjustments to Financial Statements
1. Adjustment to financial statements at the beginning of the year during the implementation of new
accounting standards for financial instruments, new income standards or new lease standards for the first
time
√ Applicable □ Not applicable
Consolidated Balance Sheet
                                                                                                             Unit: RMB
              Item                      December 31, 2018        January 1, 2019               Adjusted amount
Current assets:
                                                      2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Monetary fund                4,160,153,847.06        4,160,153,847.06
     Notes receivable and
                                 12,577,066,194.44      12,577,066,194.44
accounts receivable
         Including: notes
                                  2,385,693,417.06        2,385,693,417.06
receivable
                 Accounts
                                 10,191,372,777.38      10,191,372,777.38
receivable
     Pre-payments                  126,891,259.00          126,891,259.00
     Other receivables             398,170,769.40          398,170,769.40
         Including: interests
                                       6,754,941.00            6,754,941.00
receivable
     Inventory                    3,035,579,709.14        3,035,579,709.14
     Non-current assets due
                                   578,733,057.27          578,733,057.27
within 1 year
     Other current assets          402,255,078.05          402,255,078.05
Subtotal of current assets       21,278,849,914.36      21,278,849,914.36
Non-current assets:
     Financial assets
                                      82,970,227.00      NA                                -82,970,227.00
available for sale
     Long-term receivables        1,861,485,568.28        1,861,485,568.28
     Long-term equity
                                   185,872,021.58          185,872,021.58
investment
     Other non-current
                                 NA                           82,970,227.00                 82,970,227.00
financial assets
     Investment properties         346,831,376.55          346,831,376.55
     Fixed assets                 1,407,471,330.83        1,407,471,330.83
     Projects under
                                   226,191,587.11          226,191,587.11
construction
     Intangible assets             372,467,409.09          372,467,409.09
     Goodwill                      109,745,412.21          109,745,412.21
     Long-term prepaid
                                      37,117,918.55           37,117,918.55
expenses
     Deferred income tax
                                   425,319,406.98          425,319,406.98
assets
     Other non-current assets         16,277,605.61           16,277,605.61
Subtotal of non-current assets    5,071,749,863.79        5,071,749,863.79
Total assets                     26,350,599,778.15      26,350,599,778.15
                                                       2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
Current liabilities:
     Short-term loan               1,851,709,561.83        1,851,709,561.83
     Trading financial
                                  NA                           38,602,602.30                 38,602,602.30
liabilities
     Financial liabilities
measured at fair value with
                                       38,602,602.30      NA                                -38,602,602.30
changes recognized into
current profit and loss
     Notes payable and
                                   7,461,315,698.99        7,461,315,698.99
accounts payable
     Received pre-payments          343,297,891.20          343,297,891.20
     Payroll payable               1,124,358,611.94        1,124,358,611.94
     Tax payable                    599,478,049.81          599,478,049.81
     Other payables                1,051,537,094.97        1,051,537,094.97
    Including: interests
                                        4,745,203.31            4,745,203.31
payable
     Non-current liabilities
                                       25,500,000.00           25,500,000.00
due within 1 year
     Other current liabilities         70,845,639.51           70,845,639.51
Subtotal of current liabilities   12,566,645,150.55      12,566,645,150.55
Non-current liabilities:
     Long-term loan                 179,000,000.00          179,000,000.00
     Expected liabilities           193,761,170.12          193,761,170.12
     Deferred income                   58,693,533.40           58,693,533.40
     Deferred income tax
                                       50,137,969.76           50,137,969.76
liabilities
     Other non-current
                                    399,096,280.89          399,096,280.89
liabilities
Subtotal of non-current
                                    880,688,954.17          880,688,954.17
liabilities
Total liabilities                 13,447,334,104.72      13,447,334,104.72
Shareholders' equity:
     Share capital                 2,997,621,930.00        2,997,621,930.00
     Capital reserves              1,501,180,862.83        1,501,180,862.83
     Less: treasury share           807,733,586.00          807,733,586.00
     Other comprehensive
                                       10,337,164.41           10,337,164.41
incomes
                                                                               2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Surplus reserves                            1,246,369,430.91                  1,246,369,430.91
     Undistributed profits                       7,670,983,116.33                  7,670,983,116.33
Total shareholders' equity
attributable to the parent                     12,618,758,918.48                  12,618,758,918.48
company
     Minority shareholders'
                                                   284,506,754.95                    284,506,754.95
equity
Total shareholders' equity                     12,903,265,673.43                  12,903,265,673.43
Total liabilities and
                                               26,350,599,778.15                  26,350,599,778.15
shareholders' equity
Notes
In accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments,
Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets and Accounting Standards for Business
Enterprises No. 24 - Hedge Accounting promulgated by the Ministry of Finance on March 31, 2017 and the Accounting Standard for
Business Enterprises No. 37 - Presentation of Financial Instruments revised and published by the Ministry of Finance on May 2,
2017 (collectively referred to as the \"New Accounting Standards for Financial Instruments\"), domestic listed companies are required
to implement accordingly starting from January 1, 2019.
According to the requirements in the above revised accounting standards, the Company started to implement the new standards since
January 1, 2019. The Company adjusted the items previously listed as financial liabilities measured at fair value with changes
recognized into current profit and loss to trading financial liabilities; the equity investment measured using cost method and listed as
available-for-sale financial assets to other non-current financial assets.
Balance Sheet of the Parent Company
                                                                                                                             Unit: RMB
              Item                     December 31, 2018                     January 1, 2019                  Adjusted amount
Current assets:
     Monetary fund                                 611,190,236.01                    611,190,236.01
     Notes receivable and
                                                 5,551,148,625.96                  5,551,148,625.96
accounts receivable
         Including: notes
                                                   952,572,702.92                    952,572,702.92
receivable
                  Accounts
                                                 4,598,575,923.04                  4,598,575,923.04
receivable
     Pre-payments                                   26,772,044.53                     26,772,044.53
     Other receivables                           6,954,655,863.03                  6,954,655,863.03
         Including: interests
                                                         42,500.00                        42,500.00
receivable
     Inventory                                     120,181,267.85                    120,181,267.85
                                                       2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
     Non-current assets due
                                       50,793,137.80           50,793,137.80
within 1 year
     Other current assets              24,858,982.78           24,858,982.78
Subtotal of current assets        13,339,600,157.96      13,339,600,157.96
Non-current assets:
     Financial assets
                                       80,496,000.00      NA                                -80,496,000.00
available for sale
     Long-term receivables          160,299,143.83          160,299,143.83
     Long-term equity
                                   3,001,639,428.55        3,001,639,428.55
investment
     Other non-current
                                  NA                           80,496,000.00                 80,496,000.00
financial assets
     Investment properties          183,321,198.72          183,321,198.72
     Fixed assets                   496,363,638.38          496,363,638.38
     Projects under
                                    151,072,585.67          151,072,585.67
construction
     Intangible assets              170,879,747.04          170,879,747.04
     Long-term prepaid
                                       28,927,258.54           28,927,258.54
expenses
     Deferred income tax
                                       40,821,902.57           40,821,902.57
assets
     Other non-current assets            929,380.00              929,380.00
Subtotal of non-current assets     4,314,750,283.30        4,314,750,283.30
Total assets                      17,654,350,441.26      17,654,350,441.26
Current liabilities:
     Short-term loan               1,380,000,000.00        1,380,000,000.00
     Notes payable and
                                   1,065,528,900.01        1,065,528,900.01
accounts payable
     Received pre-payments             80,361,211.04           80,361,211.04
     Payroll payable                817,723,936.19          817,723,936.19
     Tax payable                    351,294,836.50          351,294,836.50
     Other payables                1,060,909,330.56        1,060,909,330.56
         Including: interests
                                        2,416,340.30            2,416,340.30
payable
     Other current liabilities          6,464,333.12            6,464,333.12
Subtotal of current liabilities    4,762,282,547.42        4,762,282,547.42
                                                                  2019 Q1 Report of Zhejiang Dahua Technology Co., Ltd.
Non-current liabilities:
     Expected liabilities                        3,396,100.00             3,396,100.00
     Other non-current
                                               23,684,423.74             23,684,423.74
liabilities
Subtotal of non-current
                                               27,080,523.74             27,080,523.74
liabilities
Total liabilities                           4,789,363,071.16          4,789,363,071.16
Shareholders' equity:
     Share capital                          2,997,621,930.00          2,997,621,930.00
     Capital reserves                       1,497,801,068.88          1,497,801,068.88
     Less: treasury share                     807,733,586.00            807,733,586.00
     Surplus reserves                       1,246,369,430.91          1,246,369,430.91
     Undistributed profits                  7,930,928,526.31          7,930,928,526.31
Total shareholders' equity                 12,864,987,370.10         12,864,987,370.10
Total liabilities and
                                           17,654,350,441.26         17,654,350,441.26
shareholders' equity
Notes
2. Explanation on the retroactive adjustment to previous comparative data during the implementation of
new accounting standards for financial instruments and new lease standards for the first time
□ Applicable √ Not applicable
III. Audit Report
Whether the Q1 report has been audited
□ Yes √ No
The Q1 report of the Company has not been audited yet.
                                                                Board of Directors of Zhejiang Dahua Technology Co., Ltd.
                                                                                                    Chairman: Fu Liquan
                                                                                                           April 26, 2019

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