CHINA OILFIELD SERVICES LIMITED

Transcription

1 CHINA OILFIELD SERVICES LIMITED (A joint stock limited company incorporated in the People s Republic of China with limited liability) (Stock Code:2883) OVERSEAS REGULATORY ANNOUNCEMENT FIRST QUARTER RESULTS This announcement is made pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The First Quarterly Report for 2012 of the Company is prepared in accordance with PRC Accounting Standards for Business Enterprises and has not been audited. 26 April 2012 As at the date of this announcement, the non-executive directors of the Company are Messrs. Liu Jian and Wu Mengfei; the executive directors of the Company are Messrs. Li Yong and Li Feilong; and the independent non-executive directors of the Company are Messrs. Tsui Yiu Wa, Fong Wo, Felix and Chen Quansheng.

2 China Oilfield Services Limited 2012 First Quarterly Report Stock Abbreviation: CHINA OILFIELD Stock Code: April 2012

3 Content 1 Important Notice Company Profile Significant Events Appendix... 10

4 1. Important Notice 1.1 The board of directors (the Board ), supervisory committee, and the directors, supervisors and senior management of China Oilfield Services Limited (the Company ) confirmed that there are no material omissions and misrepresentations or serious misleading statements in this report and accept join and several responsibility for the truthfulness, accuracy and completeness of the contents of the report. 1.2 All directors of the Company attended the Board meeting. 1.3 The First Quarterly Financial Report of the Company was unaudited. 1.4 Mr. Li Yong, Chief Executive Officer and President, Mr. Li Feilong, Executive Vice President and Chief Financial Officer, and Mr. Liu Zhenyu, General Manager of Accounting Department, have declared that they assure for the truthfulness and completeness of the financial statements in the report. 2. Company Profile 2.1 Major Accounting Data and Financial Indicators As at 31 March 2012 As at 31 December 2011 Currency: RMB Increase/Decrease(%) Total assets (million Yuan) 64, ,001.7 (0.1) Equity attributable to equity holders of the Parent (million Yuan) 29, , Net assets per share attributable to equity holders of the Parent (Yuan per share) Net cash flow from operating activities (million Yuan) Net cash flow from operating activities per share (Yuan per share) From the beginning of the year to end of the reporting period The Reporting Period Change over the corresponding period of last year (%) 1, From the beginning of the year to end of the reporting period Change over the corresponding period of last year (%) Net profit attributable to equity holders of the Parent (million Yuan) 1, , Basic earnings per share (Yuan per share) Basic earnings per share after deduction of non-recurring gain and loss (Yuan per share) Diluted earnings per share (Yuan per share) Weighted average net assets earnings ratio (%) Increased 0.40% Ratio of weighted average net assets earnings after deduction of non-recurring gain and loss (%) Increased 0.51% 1

5 Non-recurring gain and loss Currency:RMB Unit: Yuan Items of non-recurring gain and loss Amount for the period ended 31 March 2012 Net loss on disposal of non-current assets (7,297,680) Government grant credited to the income statement 1,643,899 Net amount of other non-operating income and expense 3,992,031 Total of non-recurring gain and loss (1,661,750) Income tax effect 249,263 Net amounts affecting under non-recurring gain and loss (1,412,487) 2.2 Number of shareholders and particulars of shareholding of the top 10 shareholders not subject to restrictions on sales as at the end of the reporting period Total number of shareholders at the end of the reporting period: A shares: 124,377 H shares: 258 Unit: Share Particulars of shareholding of the top 10 shareholders not subject to restrictions on sales Shares not subject to restrictions on sales as at Type of Name of shareholders (in full) the end of the reporting share period China National Offshore Oil Corporation 2,410,468,000 A Shares HongKong Securities Clearing Company Nominees Limited 1,531,063,898 H Shares PICC Property and Casualty Company Limited - traditional A Shares - general insurance product - 008C - CT001 Hu 12,220,770 China Ping An Trust Co., Ltd. - Ruifu 2 11,100,000 A Shares CITIC Securities Co., Ltd. 9,238,060 A Shares China Life Insurance Company Limited - traditional - A Shares general insurance product - 005L - CT001 Hu 7,999,545 China Life Insurance Company Limited - participating - A Shares individual participating - 005L - FH002 Hu 6,103,567 National Social Security Fund 106 5,450,427 A Shares China Life Insurance (Group) Company - traditional - A Shares general insurance product 5,299,831 Changsheng Tongqing Separable Trading Fund 5,195,511 A Shares Note: 1. Shares held by Hong Kong Securities Clearing Company (HKSCC) Nominees Limited were the sum of H-shares (by agent) traded in the trading platform of HKSCC Nominees Limited and in the accounts of H-share shareholders. 2. Save for China Life Insurance Company Limited - traditional - general insurance product - 005L - CT001 Hu, China Life Insurance Company Limited - participating - individual participating - 005L - FH002 Hu, and China Life Insurance (Group) Company - traditional - general insurance product, which are all managed by China Life Insurance (Group) Company, to the knowledge of the Company, there were no connected relationships or concerted actions among the above top 10 shareholders not subject to restrictions on sales. 2

6 2.3 Operating results review The Group actively consolidated existing market and continuously explored new domestic and overseas markets in the first quarter of The revenue of the Group for the first quarter of the year amounted to RMB4,794.5 million, representing an increase of 25.9% as compared to RMB3,809.4 million over the corresponding period of last year. Net profit amounted to RMB1,196.7 million, representing an increase of 23.7% as compared to RMB million over the corresponding period of last year. Basic earnings per share were RMB 0.27, representing an increase of RMB0.06. As of 31 March 2012, total assets of the Group were RMB64,947.1 million, representing a decrease of 0.1% from the beginning of the year. Total liabilities amounted to RMB35,297.0 million, representing a decrease of 3.4% from the beginning of the year. Shareholders equity was RMB29,650.0 million, representing an increase of 4.2% from the beginning of the year. Operating information of the main segments as at 31 March 2012 is listed in the following table: Drilling Services For the period ended 31 March 2012 For the period ended 31 March 2011 Change Operating Days (Day) 2,667 2, % Jack-up Drilling Rigs 2,305 1, % Semi-submersible Drilling Rigs % Utilisation Rate (Available Day) 99.9% 94.3% Increased 5.6% Jack-up Drilling Rigs 100.0% 93.7% Increased 6.3% Semi-submersible Drilling Rigs 98.9% 100.0% Decreased 1.1% Utilisation Rate (Calendar Day) 93.2% 92.6% Increased 0.6% Jack-up Drilling Rigs 93.8% 93.7% Increased 0.1% Semi-submersible Drilling Rigs 89.2% 84.4% Increased 4.8% Marine Support and Transportation Services For the period ended 31 March 2012 For the period ended 31 March 2011 Change Operating Days (Day) 5,914 6,620 (10.7%) Standby Vessels 3,529 4,036 (12.6%) AHTS Vessels 1,283 1,499 (14.4%) PSV Vessels (3.6%) Utility Vessels % Barges % Vessel Utilisation Rate (Available Day) 92.8% 98.9% Decreased 6.1% Standby Vessels 93.3% 100.0% Decreased 6.7% AHTS Vessels 88.8% 100.0% Decreased 11.2% PSV Vessels 95.4% 100.0% Decreased 4.6% 3

7 Utility Vessels 93.4% 84.6% Increased 8.8% Barges 100.0% 93.9% Increased 6.1% Vessel Utilisation Rate (Calendar Day) 89.1% 98.5% Decreased 9.4% Standby Vessels 90.2% 99.7% Decreased 9.5% AHTS Vessels 83.4% 100.0% Decreased 16.6% PSV Vessels 95.4% 100.0% Decreased 4.6% Utility Vessels 90.1% 82.5% Increased 7.6% Barges 93.4% 93.9% Decreased 0.5% Geophysical and Surveying Services 2D Seismic Data For the period ended 31 March 2012 For the period ended 31 March 2011 Change (%) Data Collection (km) 1,215 5, % Data Processing (km) - 2, % 3D Seismic Data Data Collection (km 2 ) 6,797 1, % Including: Submarine Cable (km 2 ) % Data Processing (km 2 ) 3,464 1, % As of 31 March 2012, the operating days of the Group s drilling rigs were 2,667 days, representing an increase of 442 days or 19.9% over the corresponding period of last year, of which the operating days of jack-up drilling rigs was 2,305 days, representing an increase of 308 days over the corresponding period of last year, mainly attributable to the increase of 439 days for the period by six drilling rigs, namely HYSY921, HYSY922, HYSY923, HYSY924, COSLSeeker and COSLConfidence; the decrease of 149 days by three drilling rigs, namely BH8, BH9 and COSL936 as a result of maintenance; and the increase of 18 days by other drilling rigs. The operating days of semi-submersible drilling rigs were 362 days, representing an increase of 134 days over the corresponding period of last year, mainly due to the increase of 129 operating days by equipment such as COSLPioneer, the increase of 39 days by NH6 as a result of a shorter period of maintenance, and the decrease of 35 days by NH2 as a result of maintenance. Available day utilisation rate increased 5.6% to 99.9%. Calendar day utilisation rate slightly increased to 93.2% due to a shorter period of maintenance. Besides, the calendar day utilisation rate of two accommodation rigs of the Group was 100.0%. The operating days of four module rigs working in Mexican Bay increased 248 days with a calendar day utilisation rate of 99.7% after upgrading and modification. As of 31 March 2012, the operating days of our own fleet under marine support and transportation services segment were 5,914 days, representing a decrease of 706 days or 10.7%, mainly attributable to a decrease of 289 days as a result of suspension of operation and maintenance of six vessels due 4

8 to mechanical failure; a decrease of 228 days as a result of retirement of three vessels; a decrease of 180 days as a result of modification of two vessels into surveying vessels; and a decrease of 9 days by other vessels as a result of market factors. Influenced by the increase in non-business days for the period, calendar day utilisation rate decreased to 89.1%, representing a decrease of 9.4% over the corresponding period of last year. In terms of well services segment, the operating volume of the Group s operation lines increased over the corresponding period of last year except for the operation line of well cementing. As for geophysical and surveying services segment, the operating volume of the Groups 2D data collection dropped while the operating volume of the Groups 3D data collection increased significantly, of which 2D data of 1,215 km were collected, representing a decrease of 78.1% or 2,495 km as compared to corresponding period of last year mainly due to the modification of a vessel, BH517, into a subsea cable vessel; and the 2D data collected by BH511 and NH502 decreased by 2,019 km in total. 3D data of 6,797 km 2 were collected, representing an increase of 241.2%, mainly attributed by HYSY719 and the new equipment HYSY720 with an increase of 4,697 km 2. As for data processing services, 3D data of 2,154 km 2 were processed, representing an increase of 164.4% over the corresponding period of last year. 3. Significant Events 3.1 Disclosure as to and reasons for, material changes in major accounting items and financial indicators of the Company Applicable Not applicable Reasons for key accounting items changed over 20%: 1. Revenue For the three months ended 31 March 2012, the Group s revenue amounted to RMB4,794.5 million, representing an increase of RMB985.1 million or 25.9% as compared to RMB3,809.4 million over the corresponding period of last year, mainly due to that the Group achieved almost full utilisation of domestic and overseas equipment for the first quarter of the year as well as the commencement of operation of new equipment. 2. Operating costs 5

9 For the three months ended 31 March 2012, operating costs of the Group amounted to RMB3,161.1 million, representing an increase of RMB683.7 million or 27.6% as compared to RMB2,477.4 million over the corresponding period (January and March) of last year, mainly due to the increase in labor cost of RMB276.3 million; the increase in materials consumed, charter and subcontracting cost of RMB424.8 million as a result of the commencement of operation of new equipment; and increase in charter vessels, and the decrease in other cost of RMB17.4 million. 3. Selling expenses For the three months ended 31 March 2012, the selling expenses of the Group amounted to RMB2.6 million, representing an increase of RMB1.3 million or 100.0% as compared to RMB1.3 million over the corresponding period of last year, mainly due to the increase in labor cost incurred by sales department. 4. Investment income For the three months ended 31 March 2012, the investment income of the Group amounted to RMB60.9 million, representing an increase of RMB20.9 million or 52.3% as compared to RMB40.0 million over the corresponding period of last year, mainly due to an increase in the investment income from joint venturers for the period of RMB20.9 million. 5. Operating profit For the three months ended 31 March 2012, the operating profit of the Group amounted to RMB1,381.4 million, representing an increase of RMB296.0 million or 27.3% as compared to RMB1,085.4 million over the corresponding period of last year, mainly due to the increase in the quarterly revenue of the Group, which drove the operating profit of the Group to increase over last year. 6. Non-operating income For the three months ended 31 March 2012, non-operating income of the Group amounted to RMB7.9 million, representing a decrease of RMB28.8 million or 78.5% as compared to RMB36.7 million over the corresponding period of last year, mainly due to the decrease in government grants credited to the income statement for the period of RMB 22.3 million, the decrease in insurance compensation of RMB7.9 million, the increase in proceeds from disposal of fixed assets of RMB1.8 million and the decrease in other items of RMB0.4 million. 6

10 7. Non-operating expenses For the three months ended 31 March 2012, the non-operating expenses of the Group amounted to RMB9.5 million, representing an increase of RMB9.0 million or 1,800.0% as compared to RMB0.5 million over the corresponding period of last year, mainly due to the loss from disposal of non-current assets amounted to RMB9.4 million for the period, representing an increase of RMB8.4 million over the corresponding period of last year, and the increase in other items of RMB0.6 million. 8. Total profit For the three months ended 31 March 2012, the total profit of the Group amounted to RMB1,379.8 million, representing an increase of RMB258.2 million or 23.0% as compared to RMB1,121.6 million over the corresponding period of last year. 9. Net profit For the three months ended 31 March 2012, the net profit of the Group amounted to RMB1,196.7 million, representing an increase of RMB229.6 million or 23.7% as compared to RMB967.1 million over the corresponding period of last year. 10. Earnings per share For the three months ended 31 March 2012, earnings per share of the Group were RMB0.27, representing an increase of RMB0.06 or 23.5% as compared to RMB0.21 over the corresponding period of last year. 11. Notes receivable As of 31 March 2012, notes receivable of the Group was RMB6.1 million, representing a decrease of RMB1,213.3 million or 99.5% as compared to RMB 1,219.4 million as of the beginning of the year, mainly due to the increase in cash receipt of RMB1,213.3 million for the period, resulting in a corresponding decrease in the balance of notes receivable. 12. Accounts receivable 7

11 As of 31 March 2012, the balance of the Group s accounts receivable was RMB4,801.6 million, representing an increase of RMB821.6 million or 20.6% as compared to RMB3,980.0 million as of the beginning of the year, mainly due to the increase in revenue for the first quarter of the year to a larger extent as compared to that of corresponding period of last year. 13. Staff cost payable As of 31 March 2012, the balance of staff cost payable by the Group was RMB518.0 million, representing a decrease of RMB289.3 million or 35.8% as compared to RMB807.3 million as of the beginning of the year, mainly due to that the balance at the beginning of the year included the staff bonuses payable provided by the Group in 2011, which was paid in the first quarter of the year. The ending balance represented the staff cost payable provided by the Group for the period but yet paid. 14. Taxes payable As of 31 March 2012, the balance of the Group s taxes payable was RMB185.1 million, representing a decrease of RMB52.0 million or 21.9% as compared to RMB237.1 million as of the beginning of the year, mainly due to that the balance at the beginning of the year included all kinds of taxes provided by the Group in 2011, which was fully settled in the first quarter of the year. The ending balance represented the taxes provided by the Group for the period but yet paid. 15. Net cash flows generated from operating activities For the three months ended 31 March 2012, net cash flows generated from operating activities amounted to RMB1,947.6 million, including cash received from sales of goods and rendering of services amounted to RMB5,270.1 million, tax refund received amounted to RMB60.1 million, cash paid for the procurement of goods and services amounted to RMB1,553.8 million, cash paid to and for employees amounted to RMB1,314.4 million, cash paid for various taxes amounted to RMB419.0 million, and the aggregated net cash paid for other operating activities amounted to RMB95.4 million. 16. Net cash flows used in investing activities For the three months ended 31 March 2012, net cash flows used in investing activities amounted to RMB987.4 million, mainly attributed by cash paid for acquisition of fixed assets, intangible assets and other long-term assets amounted to RMB1,018.6 million. Besides, the Group received return on investments and interest income from bank deposits amounted to RMB20.2 million and RMB11.0 million in the period respectively. 8

12 17. Net cash flows used in financing activities For the three months ended 31 March 2012, net cash flows used in financing activities amounted to RMB295.4 million, mainly comprised of cash received from government grants and new borrowings amounted to RMB7.3 million and RMB85.2 million respectively, cash paid for repayment of borrowings amounted to RMB265.0 million and cash paid for interest expenses amounted to RMB122.9 million. 18. The effect of foreign exchange rate fluctuation on cash during the period was a decrease in cash of RMB41.9 million. 3.2 Significant events and analysis on their effects and solutions Applicable Not applicable 3.3 Status of performance of undertakings made by the Company, shareholders and beneficial controllers Applicable Not applicable 3.4 Profit warning on anticipation of possible loss against accumulated net profit from the beginning of the financial year to the end of the next reporting period or significant changes in profit as compared with that of the corresponding period of last year and the reasons therefore Applicable Not applicable Corporate Representative Li Yong China Oilfield Services Limited 26 April

13 4.Appendix Balance Sheet 31 March 2012 Prepared by: China Oilfield Services Limited Unit: Yuan Currency: RMB (Unaudited) Items Balance at the end of the period Consolidated Balance at the beginning of the year Balance at the end of the period Company Balance at the beginning of the year Current assets: Cash on hand and at bank 7,157,847,079 6,539,090,013 5,913,745,104 5,543,014,928 Notes receivable 6,081,620 1,219,384,087 6,081,620 1,219,384,087 Accounts receivable 4,801,611,794 3,980,041,063 4,066,504,214 3,209,953,318 Prepayments 412,103, ,012,491 27,965,959 40,653,025 Dividend receivable 40,917,840-45,917,840 - Interests receivable 23,071,140 5,734,134 23,071,140 5,734,134 Other receivables 564,216, ,093, ,960, ,205,607 Inventories 969,231, ,552, ,481, ,713,286 Total current assets 13,975,080,875 13,546,908,561 11,587,727,764 11,159,658,385 Non-current assets: Long-term equity investments 501,633, ,062,950 7,720,973,498 7,718,314,037 Fixed assets 34,803,718,111 35,033,557,282 16,723,937,831 16,678,311,768 Construction in progress 10,605,936,117 10,892,252,784 2,335,104,956 2,826,570,605 Intangible assets 373,428, ,767, ,032, ,264,349 Goodwill 4,240,760,164 4,245,206, Long-term prepaid expenses 445,127, ,743, ,497, ,773,298 Long-term receivables ,869,080,190 22,807,997,820 Other non-current assets 1,376, , Total non-current assets 50,971,981,132 51,454,765,669 50,182,626,743 50,597,231,877 Total assets 64,947,062,007 65,001,674,230 61,770,354,507 61,756,890,262 Current liabilities: Accounts payable 3,227,599,082 3,936,418,235 2,227,311,557 2,705,954,879 Receipts in advance 5,255,901 16,282,476 5,255,901 16,282,476 Staff cost payable 518,025, ,337, ,572, ,246,077 Taxes payable 185,067, ,116,887 98,234, ,270,050 Interests payable 118,988, ,487, ,884, ,487,615 Other payables 315,580, ,962, ,676, ,746,446 Current portion of non-current liabilities 1,624,621,773 1,626,325,299 1,624,621,773 1,626,325,299 Other current liabilities 190,503, ,754,471 43,062,975 46,335,749 Total current liabilities 6,185,640,430 7,255,684,897 4,701,621,281 5,552,648,591 Non-current liabilities: Long-term bank borrowings 24,777,495,830 24,983,767,544 24,777,495,830 24,983,767,544 10

14 Long-term bonds 1,500,000,000 1,500,000,000 1,500,000,000 1,500,000,000 Deferred tax liabilities 1,889,541,385 1,817,000, ,263, ,071,254 Other non-current liabilities 944,359, ,068, ,697, ,089,222 Total non-current liabilities 29,111,396,458 29,286,835,676 27,299,457,462 27,403,928,020 Total liabilities 35,297,036,888 36,542,520,573 32,001,078,743 32,956,576,611 Shareholders equity: Share capital 4,495,320,000 4,495,320,000 4,495,320,000 4,495,320,000 Capital reserve 8,074,565,726 8,074,565,726 8,074,565,726 8,074,565,726 Statutory reserve funds 2,070,836,699 2,070,836,699 2,070,836,699 2,070,836,699 Retained earnings 15,565,039,750 14,372,484,759 15,172,851,291 14,205,428,987 Including: proposed cash dividends 809,157, ,157, ,157, ,157,600 Cumulative translation reserves (560,507,514) (554,642,426) (44,297,952) (45,837,761) Equity attributable to equity holders of the parent 29,645,254,661 28,458,564,758 29,769,275,764 28,800,313,651 Minority interest 4,770, , Total shareholders equity 29,650,025,119 28,459,153,657 29,769,275,764 28,800,313,651 Total liabilities and shareholders equity 64,947,062,007 65,001,674,230 61,770,354,507 61,756,890,262 Chief Executive Officer Executive Vice President General Manager of Accounting and President and Chief Financial Officer Department Li Yong Li Feilong Liu Zhenyu 11

15 Income Statement January to March 2012 Prepared by: China Oilfield Services Limited Unit: Yuan Currency: RMB (Unaudited) Items Amounts from the beginning of the year to end of the reporting period Consolidated Amounts from the beginning of the year to end of the reporting period Last year Amounts from the beginning of the year to end of the reporting period Company Amounts from the beginning of the year to end of the reporting period Last year 1. Revenue 4,794,459,231 3,809,390,228 3,603,258,838 2,979,510,531 Less: Operating costs 3,161,070,031 2,477,414,337 2,253,613,278 1,757,332,862 Bussiness taxes and surcharges 113,305,118 97,688, ,080,911 96,464,389 Selling expenses 2,611,020 1,263, , ,780 General and administrative expenses 93,909,460 86,892,541 42,778,368 46,562,122 Financial expenses 103,012, ,710, ,162, ,368,157 Assets impairment losses Add: Investment income 60,868,411 39,972,034 68,812,982 43,818,777 Including: Share of profits of jointly-controlled entities 60,868,411 39,972,034 58,812,982 43,818, Operating profit 1,381,419,317 1,085,392,334 1,147,986,733 1,010,055,998 Add: Non-operating income 7,874,317 36,660,417 7,794,025 73,474,193 Less: Non-operating expenses 9,536, ,310 9,500, ,615 Including: Loss on disposal of noncurrent assets 9,335,675 1,006,211 9,335, ,700 3.Total profit 1,379,757,567 1,121,558,441 1,146,279,829 1,083,287,576 Less: Income tax expenses 183,020, ,459, ,857, ,251, Net Profit 1,196,737, ,099, ,422, ,036,222 Net profit attributable to equity holders of the parent 1,192,554, ,899, ,422, ,036,222 Minority interests 4,182,176 1,199, Earnings per share: Basic and diluted earnings per share N/A N/A Chief Executive Officer Executive Vice President General Manager of Accounting and President and Chief Financial Officer Department Li Yong Li Feilong Liu Zhenyu 12

16 Cash Flow Statement January to March 2012 Prepared by: China Oilfield Services Limited Unit: Yuan Currency: RMB (Unaudited) Items Amounts from the beginning of the year to end of the reporting period Consolidated Amounts from the beginning of the year to end of the reporting period Last year Amounts from the beginning of the year to end of the reporting period Company Amounts from the beginning of the year to end of the reporting period Last year 1.Cash flows from operating activities: Cash received from sale of goods and rendering of services 5,270,094,560 3,725,099,973 3,992,387,985 2,853,986,955 Tax refund received 60,148,671 61,446, Cash received relating to other operating activities 7,246,209 29,627,076 4,345,256 29,555,994 Subtotal of cash inflows from operating activities 5,337,489,440 3,816,173,620 3,996,733,241 2,883,542,949 Cash paid for goods and services (1,553,783,175) (1,162,954,522) (1,126,167,931) (825,626,456) Cash paid to and for employees (1,314,394,944) (852,052,887) (1,073,644,077) (714,647,364) Cash paid for taxes (418,967,371) (286,474,386) (363,619,906) (239,010,099) Cash paid relating to other operating activities (102,751,887) (275,898,559) (97,204,897) (75,102,339) Subtotal of cash outflows from operating activities (3,389,897,377) (2,577,380,354) (2,660,636,811) (1,854,386,258) Net cash flows from operating activities 1,947,592,063 1,238,793,266 1,336,096,430 1,029,156,691 2.Cash flows from investing activities Cash received from return on investments 20,235,680 31,347,240 20,235,680 31,347,240 Cash received on interest income from bank deposits 11,047,035 17,658,199 11,047,035 10,376,417 Cash received from other investing activities ,678 Subtotal of cash inflows from investing activities 31,282,715 49,005,439 31,282,715 42,502,335 Cash paid for acquisition of fixed assets, intangible assets and other (1,018,636,801) (1,304,383,680) (567,574,044) (919,148,798) long-term assets Cash paid for other investment activities - - (85,205,250) - Subtotal of cash outflows from investing activities (1,018,636,801) (1,304,383,680) (652,779,294) (919,148,798) Net cash flows used in investing activities (987,354,086) (1,255,378,241) (621,496,579) (876,646,463) 3. Cash flows from financing activities: Cash received from government grants and subsidies 7,252,600 17,214,000 7,252,600 17,214,000 Cash received from new borrowings 85,205,250-85,205,250 - Subtotal of cash inflows from financing activities 92,457,850 17,214,000 92,457,850 17,214,000 Cash paid for repayment of borrowings (264,990,030) (2,106,000,000) (264,990,030) (2,106,000,000) 13

17 Cash paid for interest expenses (122,926,109) (111,769,411) (122,926,109) (106,114,437) Subtotal of cash outflows from financing activities (387,916,139) (2,217,769,411) (387,916,139) (2,212,114,437) Net cash flows used in financing activities (295,458,289) (2,200,555,411) (295,458,289) (2,194,900,437) 4. Effect of foreign exchange rate fluctuation on cash and cash equivalents (41,909,186) (64,445,014) (44,297,950) (38,508,612) 5. Net increase/(decrease) in cash and cash equivalents 622,870,502 (2,281,585,400) 374,843,612 (2,080,898,821) Add: Cash and cash equivalents at the beginning of the period 5,646,158,726 5,847,164,484 4,650,083,641 4,399,216, Cash and cash equivalents at the end of period 6,269,029,228 3,565,579,084 5,024,927,253 2,318,317,643 Chief Executive Officer Executive Vice President General Manager of Accounting and President and Chief Financial Officer Department Li Yong Li Feilong Liu Zhenyu 14